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4646 Dakota Street SE
Prior Lake, MN 55372
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REGULAR CITY COUNCIL MEETING MINUTES
October 18, 2010
CALL TO ORDER
The meeting was called to order at 6:00 p.m. Present were Mayor Myser, Council members Erickson, Hed-
berg and Millar, City Manager Boyles, City Attorney Pace, Public Works Director/City Engineer Albrecht,
Finance Director Erickson, Fire Chief Hartman, Building and Transit Services Director Kansier, Community
Development and Natural Resources Director Parr, Assistant City Manager Meyer and Administrative As-
sistant Green. Councilmember Keeney was absent.
PUBLIC FORUM
The Public Forum is intended to afford the public an opportunity to address concerns to the City Council. It
will be no longer than 30 minutes in length and each presenter will have no more than ten (10) minutes to
speak. Items to be considered on the agenda may be addressed at the Public Forum unless they have
been or will be the subject of a public hearing or public information hearing at the City Council, the Econom-
ic Development Authority (EDA), the Planning Commission, or any other City Advisory Committee within
the foreseeable future. Forum items are also restricted to City governmental topics rather than as a plat-
form for private agendas. Matters that are the subject of pending litigation are not appropriate for the Public
Forum. The City Council will not take formal action on Public Forum presentations.
City Manager Boyles explained the concept of the Public Forum.
Comments:
M.C. Gresser, 14145 Shady Beach Trail NE, commented on his belief that City taxes and salaries should
not be increased. Gave examples of industry workers who took pay cuts, per diem cuts and travel cuts.
Suggested salaries should be cut. Thanked those who voted against increase in taxes and salaries.
Erickson: Responded to statements made by Gresser commenting that only a preliminary budget has
been approved and it proposed a tax reduction by the City on the average-valued home. Noted that no in-
crease in the number of personnel is proposed, the City has lowest city tax rate of any city in Scott County
and the surrounding area. Stated there are other taxing authorities for Prior Lake properties whose share
of the total tax levy is higher than that of the City.
Myser: Stated the Council considered a preliminary budget increase of 2.8% and a tax levy increase of
0.3%. Council, in a work session, has asked staff to prepare a list of potential reductions. Offered an ex-
ample of Edina as a city that has a lower tax rate than Prior Lake.
Erickson: Replied that Edina has Southdale as a significant economic tax base that Prior Lake does not
have and stated Prior Lake should be compared to communities with similar situations in economic devel-
opmentand residential properties. Believes Prior Lake compares favorably to similar cities.
Hedberg: Added that Prior Lake has the lowest tax rate in Scott County as well as the lowest tax rate per
capita. Noted there are 11 % fewer employees in the City than there were in 2007 and services have been
cut in an effort to contain expenses.
Phone 952.447.9800 /Fax 952.447.4245 / www.cityofpriorlake.com
Jeff Evens, 5443 Fairlawn Shores, Stated he has placed campaign signs throughout the city and he has
plans of the various properties so he knows right where the right of way line is. He offered assistance to
implementation of the current sign policy. Related his experience of having campaign signs removed and
the frustration he feels. Seeks consistency with enforcement.
Myser: Responded that staff is reviewing ordinance regarding signs in the right of way and how to deal
with them, and that the staff and Council will ensure that it is enforced equally. Noted that staff has been
asked to be proactive in enforcement.
Millar: Commented that some of his signs were also removed during campaigns and assured Evens he
has not been singled out in enforcement of signs.
Evens: Replied he does not feel he has been singled out, but rather came to this meeting to offer help and
expertise in right of way and surveying matters.
John Myser, 16015 Northwood Road, representative of Citizens for Accountable Government, stated that
on Tuesday, October 19 at 7 p.m., CAG is conducting a meeting to offer its analysis of city spending histor-
ically and in the proposed 2011 budget. Invited all to attend.
APPROVAL OF AGENDA
MOTION BY MILLAR, SECONDED BY HEDBERG TO APPROVE THE AGENDA AS PRESENTED.
VOTE: Ayes by Myser, Erickson, Hedberg and Millar. The motion carried.
APPROVAL OF MEETING MINUTES
MOTION BY HEDBERG, SECONDED BY MILLAR TO APPROVE THE OCTOBER 4, 2010, MEETING
MINUTES AS PRESENTED.
VOTE: Ayes by Myser, Erickson, Hedberg and Millar. The motion carried.
CONSENT AGENDA
City Manager Boyles reviewed the items on the consent agenda.
A. Consider Approval of Invoices to be Paid.
B. Consider Approval of September 2010 Treasurer's Report.
C. Consider Approval of Building Permit Summary Report.
D. Consider Approval of Animal Control Services Report.
E. Consider Approval of Fire Department Report.
F. Consider Approval of Resolution 10-095 Authorizing the Replacement of a 1993 Tiller and the Purchase
Two Brine Production Tanks.
G. Consider Approval of Resolution 10-096 Accepting a Donation and Authorizing Construction of a Raised
Deck Seating Area at Memorial Park to be Funded by P.L.A.B.A.
H. Consider Approval of 3~d Quarter Investment Report.
I. Consider Approval of 3~d Quarter Financial Report.
J. Consider Approval of a Temporary On-Sale Liquor License for the VFW.
Councilmember Erickson requested that item 5F be removed for comment.
MOTION BY ERICKSON, SECONDED BY MILLAR TO APPROVE THE CONSENT AGENDA AS MOD-
IFIED.
VOTE: Ayes by Myser, Erickson, Hedberg and Millar. The motion carried.
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DRAFT 10 18 10 City Council meeting minutes
Erickson: Commented on the proposed purchase of brine production tanks indicating that snow and ice
removal is one example of how staff has reduced spending by using innovative processes. Explained the
de-icing processes followed use less salt and sand, saving money and reducing the amount of salt and
sand that goes into the lakes. Believes less fuel is consumed as fewer vehicles are needed to spread salt
and sand.
MOTION BY HEDBERG, SECONDED BY ERICKSON TO CONSIDER APPROVAL OF RESOLUTION 10-
095AUTHORIZING THE REPLACEMENT OF A 1993 TILLER AND THE PURCHASE OF TWO BRINE
PRODUCTION TANKS.
VOTE: Ayes by Myser, Erickson, Hedberg and Millar. The motion carried.
PRESENTATION
Project Community Connect
City Manager Boyles introduced Coordinator of Scott Carver Project Community Connect Patricia Pettit,
Chair of Heading Home Teri Funk and Project Supporter June Phillips. Funk stated the goal of the program
is to stop homelessness in Carver and Scott Counties. Described local demographics of homelessness.
Stated there are homeless people in Prior Lake. Pettit referred to the City's 2030 Vision Goal of Safe and
Healthy Communities, and spoke of the financial impact of homelessness. Project Community Connect is
an event scheduled for November 23, 2010 at Canterbury Downs which provides an opportunity to provide
basic services for people in need, such as medical, legal, dental, housing information, etc,
Comments:
Erickson: Complimented them on their efforts and offered assistance with organizing volunteers.
Hedberg: Noted that Safe Haven is listed as a contact for volunteers for this event. Thanked them for
coming to educate about this program.
Millar: Commended them for taking on this necessary work,
Funk: Responded that this event is important in bringing awareness to the community about homeless-
ness.
Myser: Thanked them for their presentation, adding that it is eye-opening to learn of the problem in our
community.
PUBLIC HEARING
No public hearing was scheduled.
OLD BUSINESS
Consider Approval of a Resolution Amending the Enabling Resolution for the Economic Develop-
ment Authority (EDA).
City Manager Boyles explained the history of an EDA in the City and the current composition of it. Stated
that the Bylaws and Compensation Committee met to consider revisions to the enabling resolution and out-
lined the changes being proposed. Also listed the recommended changes received earlier from Council-
member Keeney who was absent at this meeting.
Comments:
Millar: Stated he served on the Bylaws and Compensation Committee. Reviewed the committee's rec-
ommendation that there should be five members on the EDA: two from the Council and three from the City.
DR,4FT 10 18 10 City Council meeting minutes
Discussed the criteria for membership stating that non-Council members should be a stakeholder in the
City by either being a resident or having a controlling interest in a business in the City.
Boyles: Explained the concept of staggering terms of membership so expertise can be retained as new
members come onto the EDA.
Hedberg: Commented that significant re-setting of priorities is taking place regarding economic develop-
ment in the City. Believes this is an appropriate time to restructure the composition of EDA membership so
the City will be ready when economic recovery takes place. The City needs to create a plan of action,
sources of funds, etc. and this is the first step in preparation. Believes the City has many residents who are
entrepreneurs or senior executives and they are qualified to shape the future of Prior Lake's business
community; and this proposed EDA membership structure will allow the City to tap into an expert talent
base. Commented that a concern expressed during discussion has been to assure that the City Council
retains control of financial decisions, and the proposed revisions to the enabling resolution reinforce that.
Erickson: Suggested changes to the enabling resolution to retain consistency in language throughout the
document.
Myser: Concurred with Erickson's suggestions.
Erickson: Concurred that economic development is a top priority for the City. Commented that Prior Lake
has a handicap by not having a major transit way, but also has many strengths and they should be leve-
raged to bring economic development here.
Myser: Believes jobs, services and tax revenue will come to Prior Lake with economic development.
Queried where the limitation of powers section derived from.
Pace: Replied that some of the items are from State statutes and others from bylaws.
Myser: Asked if the Mayor is responsible for recommending the term for each individual appointed.
Pace: Affirmed.
MOTION BY HEDBERG, SECONDED BY ERICKSON TO APPROVE RESOLUTION 10.097 AMENDING
RESOLUTIONS 00-119, 89-17 AND 96-99 WHICH ESTABLISHED THE PRIOR LAKE ECONOMIC DE-
VELOPMENTAUTHORITY (EDA) PURSUANT TO THE PROVISIONS OF MINNESOTA STATUTES,
CHAPTER 469.
VOTE: Ayes by Myser, Erickson, Hedberg and Millar. The motion carried.
NEW BUSINESS
Consider Approval of a Resolution Amending the Economic Development Authority (EDA) Bylaws.
City Manager Boyles described the contents of the EDA bylaws and highlighted the proposed changes.
Comments:
Erickson: Agreed with Millar's earlier comment that the EDA should be made up of stakeholders in the
City believing that people who have an economic interest in the City should have an opportunity to be in-
volved.
Millar: Added that the non-Council members should have business acumen. Stated he is glad to see this
reorganization of the EDA come forward; even though business conditions are not good right now, they will
improve and this will allow City to be ready.
Hedberg: Believes CR 21 going through to Hwy 169 will provide opportunity for the City with economic re-
covery. Supports the criteria established for members and believes the City should make efforts to make
this work and reach out to the talent base in the City.
Myser: Opposed having only a pool of candidates that is restricted to residents or business owners and
believes a broader pool would allow selection of other candidates. Encouraged everyone to speak to po-
tential candidates and encouraged interested members of the community to step forward.
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DRAFT 101810 City Council meeting minutes
MOTION BY MILLAR, SECONDED BY HEDBERG TO APPROVE RESOLUTION 10-098 APPROVING
AMENDMENTS TO THE BYLAWS OF THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY
(EDA).
VOTE: Ayes by Myser, Erickson, Hedberg and Millar. The motion carried.
Consider Approval of Three Resolutions Making Appointments to the: 1) Parks Advisory Commit-
tee, 2) Communications-Technology Advisory Committee, and 3) Planning Commission.
City Manager Boyles stated that terms of some members of advisory committees will be completed on
October 31 so candidates for new terms were solicited and interviews conducted. Suggested the Council
direct staff to recruit additional applicants for the Park Advisory Committee (PAC) and Communications
Technology Advisory Committee (CTAC). Noted that the Community Safety Advisory Committee (CSAC)
is now only five members and its bylaws do not designate a minimum c-r maximum number of members.
Suggested Council direct staff to consult with CSAC to see if they desire more members.
Comments:
Hedberg: Commented he is the current Council liaison to the PAC and offered a thank you to PAC mem-
bers for their service. Stated that advisory committees are significant contributors to mechanisms of the
City. Acknowledged Dan Ruhme who is stepping down from the committee for personal reasons. Con-
curred that the PAC should have a full complement of members and the CSAC membership should be re-
ferred to committee to learn their desire for number of members. Wants to signal full support of the Council
to the committees.
Millar: Thanked applicants for applying noting that the committees are an important part of guiding the
community. Thanked Dan Ringstad for his work on the Planning Commission explaining he has served the
limit of three terms. Concurred the CSAC members should make a rec;ommendation on whether it should
have five or seven members.
Erickson: Will support the appointments. Noted the Planning Commission is required by Statute, but the
advisory committees have been put in place by the Council to assist in decision-making. Spoke of the work
done by each committee.
Myser: Concurred the CSAC should be consulted on the appropriate number of members. Supports seek-
ing further applicants for those committees that still have openings. Appreciates the service of the commit-
tees. Will support motions.
MOTION BY MILLAR, SECONDED BY HEDBERG TO APPROVE RESOLUTION 10-099 APPOINTING
RON CEMINSKY AND KELLY LOOSE TO SERVE ON THE PARKS ADVISORY COMMITTEE.
VOTE: Ayes by Myser, Erickson, Hedberg and Millar. The motion carried.
MOTION BY MILLAR, SECONDED BY HEDBERG TO APPROVE RESOLUTION 10-100 APPOINTING
DAVID ELBON TO SERVE ON THE COMMUNICATIONS-TECHNOLOGY ADVISORY COMMITTEE.
VOTE: Ayes by Myser, Erickson, Hedberg and Millar. The motion carried.
MOTION BY MILLAR, SECONDED BY HEDBERG TO APPROVE RESOLUTION 10-101 APPOINTING
ALAN BILLINGTON AND TOM ROSZAK TO SERVE ON THE PLANNING COMMISSION.
VOTE: Ayes by Myser, Erickson, Hedberg and Millar. The motion carried.
Consider Approval of a Resolution Authorizing the Mayor and City Manager to Execute the City's
Standardized Contract for Professional Services for the 2010-2011 Monitoring Well Project.
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DRAFT 1018 10 City Council meeting minutes
Public Works Director Albrecht reported that the City is required to have a wellhead protection plan and
a two-phase plan was implemented in 2005 and 2007. Displayed wellhead protection areas and areas of
potential contamination. Stated that groundwater and surface water interaction in the Jordan aquifer must
be considered and any contaminants that can enter the water supply from outside of the wellhead protec-
tion area must be monitored. Installation of monitoring wells that would provide at least a one year warning
of any contamination is proposed. A major component of such monitoring wells is developing a model and
determining location of the wells. Recommends Barr Engineering to design and construct the monitoring
wells given their unique expertise in this area and knowledge of the Prior Lake domestic water system.
Comments:
Erickson: Will support. Stated that clean and safe water is what every citizen should expect from the City
and this action is exercising due diligence.
Millar: Asked if it is known how many monitoring wells will be drilled.
Albrecht: Replied that depends on what is found with the groundwater-hydrology model. A recommenda-
tion will be made after the model is developed.
Millar: Agreed that clean water is the City's responsibility and this will help to assure it.
Hedberg: Will support. Noted that some of the wellhead protection area is in Credit River Township.
Some of that area is developable and putting in monitoring wells will help warn against any contamination
coming from a source that is not within the City's control.
Myser: Queried why the monitoring model development doesn't go out to bid,
Albrecht: Replied the City developed a consultant pool for specialty services. Stated he is unaware of any
other consultant who is as knowledgeable in groundwater as Barr Engineering.
Myser: Asked if there are risks of contamination from any other sources.
Albrecht: Replied the biggest risk is from private wells. Old wells are not always abandoned properly.
Stated that the City sends an annual mailing to the properties in the wellhead areas to remind them of con-
taminantpotential, The City also works with the County on septic inspections. Stated that an extension of
sewer to the City portion of the wellhead protection area is planned for 2012 and that will start to eliminate
some of the private wells. A $10,000 grant was received to help with the sealing and abandonment of wells
as part of that sewer project.
Myser: Asked how many wells are in the wellhead protection area.
Albrecht: Replied there are approximately 150 private resident wells and an additional five in the industrial
area. Noted problems are caused because there is no record of the depth of the wells and the septic sys-
tems are makeshift and old, The City desires to close the welt and septic on a property known as the Svo-
boda property and connect it to municipal sewer and water which is located in the middle of the wellhead
protection area.
Myser: Clarified that the monitoring wells will be between the private wells and the City's wellhead.
Albrecht: Affirmed and added that testing would find a contaminant one year before it would get into our
system,
MOTION BY HEDBERG, SECONDED BY MILLAR TO APPROVE RESOLUTION 10-102 AUTHORIZING
THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY'S STANDARDIZED PROFESSIONAL
SERVICES CONTRACT FOR THE 2010-2011 MONITORING WELL PROJECT.
VOTE: Ayes by Myser, Erickson, Hedberg and Millar. The motion carried.
Consider Approval of a Report on Housing Improvement Areas.
Building and Transit Services Director Kansier offered a PowerPoint presentation outlining the criteria
for a Housing Improvement Area (HIA). Stated that ordinance would have to be adopted to allow the City
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DRAFT 1018 10 City Council meeting minutes
to finance improvements in condominium or townhouse developments after which the City would advance
funds and recover them by charging fees or assessing the affected association. Spoke of processes to be
followed if the City chooses to establish a H IA.
Comments:
Hedberg: Commented he received contact from a homeowner's association that stated many of the units
were in foreclosure. Suspects it would be hard to determine how big the problem might be in the City, but
there may be many foreclosures in the townhome developments which could result in higher incidence of
decay and ultimately cause blight in the city. Asked what would happen to the City's interest in outstanding
special assessment if a home went into foreclosure.
J. Erickson: Replied that if general obligation bonds were issued with a funding source of special assess-
ment, then taxes would repay the debt. Believes the statutory tax forfeiture process is seven years, but as-
sessments would ultimately be paid.
Pace: Affirmed the assessed amount does not get erased. The process might include property being for-
feited to the State, then to the County and then to the City.
Hedberg: Commented that foreclosures often are sold in distress sales and asked if the City would have
absolute claim that an assessment would have to be paid before property transfers.
J. Erickson. Replied that typically title and mortgage companies will want assessments paid off.
Hedberg: Asked if the City can enforce that any outstanding amount be assumed or retired.
J. Erickson: Will have to research.
Hedberg: Believes that consideration of acceptable risk in establishing an HIA should include assurance
that assessments will be paid and the cost to administer the program should be included with fees and as-
sessments. Believes the City should pursue feasibility of an HIA to avoid an unacceptable amount of decay
in the City.
Millar: Agreed with Hedberg that decay could become an issue and an HIA could be an appropriate use of
public funds. Believes assessing the properties should be the process used rather than charging fees.
Asked if the City would be responsible for payments if a home sits emK-ty during a foreclosure and what the
City's recourse could be if the homeowners association fails to meet its obligation.
Kansier: Will have to research that.
Millar: Supports moving forward to learn more and consider whether the City should pursue whether it
wants to offer an HIA.
W. Erickson: Commented that a foreclosed property becomes bank-owned or mortgage company-owned,
and asked if that entity would have to pay the homeowners association fees if a property is in foreclosure.
Pace: Responded that a bank or mortgage company would have to pay association fees because a home-
owners association can place a lien on property for the amount of unpaid fees.
W. Erickson: Queried whether the Economic Development Authority is the appropriate body to consider
the question of whether the City implements a housing improvement area.
Pace: Responded that the enabling resolution establishing an HIA can provide that either the EDA or
Board of the HIA may be designated as the implementing agency for a housing improvement area and for
the collection of fees.
W. Erickson: Suggested this topic be postponed to the newly formed EDA.
Myser: Believes EDA funds should be focused on development and that this project is not an appropriate
assignment in respect to creating jobs. Does not believe it is the role of government to finance such
projects and that a homeowner association could go to the private business sector for funds. Stated that in
a situation where only 25% of the interested homeowner association members are needed for a petition re-
questing the City to establish this housing improvement area project, there could be much risk for the City.
Queried whether it might put the City's bond rating at risk.
DRAFT 10 18 10 City Council meeting minutes
J. Erickson: Responded the rating agencies would consider the magnitude of the issue to be bonded.
Myser: Stated he does not see the benefits for the City in pursuing the project.
Hedberg: Noted that many banks will suspend making payments on homeowner association dues until a
property is sold thus leaving the HOA with reduced capability to make improvements. Believes issues arise
when homes sit vacant and are susceptible to decay.
Myser: Stated he does not support having staff and legal counsel use their time on this project.
W. Erickson: Asked if the City is aware of a property that meets the housing improvement area criteria.
Pace: Responded that the staff report indicates that a homeowners association has approached the City.
W. Erickson: Asked if staff believes that HOA meets the "but if' criteria.
Parr: Replied she is unsure if the HOA meets the criteria. Added that the HOA has pursued it to the de-
gree of meeting the threshold for the petition in order to learn whether the Council is supportive.
W. Erickson: Stated he does not have enough information to know whether or not any homeowners asso-
ciation even meets the criteria. Not sure there is any property in the City that qualifies for it.
Millar: Agreed there are many unanswered questions. Concurred that blighted properties would affect the
City and it that case it would be in the public interest to move forward.
Myser: Queried whether there are actua-ly blighted areas in our community.
Hedberg: Understands there are a significant number of townhomes in this development that are vacant
and in foreclosure which is the type of circumstance that could spiral into uncontrollable decline. Sug-
gested the HOA establish that they meet the criteria before investing City time to examine the issue.
MOTION BY HEDBERG, SECONDED BY MILLAR TO DIRECT STAFF TO WORK WITH THE INTER-
ESTED HOMEOWNER'S ASSOCIATION TO HAVE THEM MAKE THE CASE ON WHETHER THEY
MEET THE SPECIFIC STANDARDS PRESENTED IN THE STATUTE FOR HOUSING IMPROVEMENT
AREAS AND BRING IT BACK TO THE COUNCIL.
Myser: Commented that he is fundamentally opposed to spending staff time on it and will not support.
VOTE: Ayes by Erickson, Hedberg and Millar. Myser opposed. The motion carried.
OTHER BUSINESS
Community Events
Hedberg: Stated it is Election Day in two weeks, and the more voters there are, the better the electorate
will be and the better the elected officials will be for city, county, and state.
Myser: Stated the EDAC's Meet and Greet last Thursday was an opportunity for businesses to provide
feedback on their perception of the business environment and was an excellent event. Updated all on the
status of meetings he attended regarding impaired water bodies and entities that are gathering to collectively
clean up the lakes. Noted that improving water quality has been added to SCALE's legislative agenda.
ADJOURNMENT
With no further comments from Council members, a motion to adjourn was made by Millar and seconded
by Hedberg. With all in favor, the meeting adjourned at 8:27 p.m.
Frank Boyles, City Manager Charlotte Green, Administrative Asst.
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