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HomeMy WebLinkAbout03 07 11 City Council minutes 4646 Dakota Street SE Prior Lake, MN 553 72 REGULAR CITY COUNCIL MEETING MINUTES March 7 , 2011 CALL TO ORDER The meeting was called to order at 6 :00 p.m. Present were Mayor Myser, Council members Erickson, He d- berg, Keeney and Soukup , City Manager Boyles, City Attorney Pace, Public Works Director A lbrecht , Parks and Fleet Supervisor Friedges, Streets and Utilities Supervisor Wiita, Assistant City Engineer Poppler, Building and Transit Services Director Kansier, Code Enforcement Officer Corrow, Finance Director Eric k- son, Fire Chief Hartman, Police Ch ief O’Rourke, Community Development and Natural Resources Director Parr, Assistant C ity Manager Meyer , Communications Coordinator Peterson and Administrative Assis tant Green. PUBLIC FORUM The Public Forum is intended to afford the public an opportunit y to address concerns to the City Council. The Public Forum will be no longer than 30 minutes in length and each presenter will have no more than ten (10) minutes to speak. Topics of discussion are restricted to City governmental topics rather than pr i- va te or political agendas. Topics may be addressed at the Public Forum that are on the agenda except those topics that have been or are the subject of a scheduled public hearing or public information hearing before the City Council, the Economic Development Authority (EDA), Planning Commission, or any other City Advisory Committee. The City Council may discuss but will not take formal action on Public Forum presentations. Matters that are the subject of pending litigation are not appropriate for the Forum. Comments: No person stepped forward to speak. APPROVAL OF AGENDA Myser: Requested the addition of item 10B , Budget P rocess , and 10C , General Fund Surplus . MOTION BY HEDBERG, SECOND BY ERICKSON TO APPROVE THE A GENDA AS MODIFIED. VOTE: Ayes by Myser and Keeney Erickson, Hedberg and Soukup voted n ay. The motion failed. MOTION BY H EDBERG, SECOND BY E RICKSON TO APPROVE THE AGENDA AS PRESENTED. Myser : Queried why the Council was unwilling to add new item s t o the agenda . Pace : Replied that rules of order required a motion and a second to amend the agenda to add something under New Business. After a motion and a second , individual members can express their position on the pending motion. During that discuss ion th e Mayor could have asked other members of the Council to e x- plain why they were opposed to amending the agenda to add a new item of business to New Business. When a vote on the motion was taken , the motion failed. The discussion on that item was com plete. The debate to convince ones colleagues to vote for or against a motion takes place while the motion i s under consideration. Myser : Asked if the motion and second to approve the agenda is open to discussion. Pace : Responded that t he question wen t back to the motion that was made and failed. To reopen that m o- tion, a motion for reconsideration must be made by a person on the prevai l ing side . Phone 952.447. 9800 / Fax 952.44 7 . 4245 / www.cityofpriorlake.com Myser : A sked for a motion to reconsider in order to be able to provide information about the proposed to p- i cs. Hedberg : Declined. Soukup : Concurred with Hedberg. Erickson : Stated he prefers not to bring the motion forward believing there was an opportunity to offer the information before the motion was voted on. Keeney : Asked the City Attorney, for future reference, for the appropriate mechanism to get items on the agen da . Pace: Referred to the bylaws section 4.02 stating the City Manager is respo nsible for preparing the age n- da. Commented that the current question before the Council is whether to approve the agenda as it is pr e- sented. VOTE: Ayes by Erickson, Hedberg, and Soukup. Myser and Keeney voted nay. The motion carried. APPROVAL OF MEETING MINUTES MOTION BY HEDBERG, SECOND BY ERICKSON TO APPRO VE THE MINUTES OF THE FEBRUARY 22 , 2011 MEETING AS PRESENTED. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. 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 Resolution 1 1 - 029 Declaring the Official Intent of the City of Prior Lake to Reimburse Certain Expenditures from the Proceeds of Bonds to be Issued by the City. C. Consider Approval of Resolution 11 - 030 Modifying the Funding Source for the 2011 Monitoring Well Pro ject. D. C onsider Approval of Resolution 11 - 031 Approving Plans and Specifications and Authorizing Advertis e- ment for Bids for the Boudin Street Phase I Improvement Project (City Project #11 - 011) MOTION BY ERICKSON, SECOND BY SOUKUP TO APPROVE THE CONSE NT AGENDA AS MO D- IFIED. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. PRESENTATION Consider Approval of a Report on the 2010 Code Enforcement Activity. Code Enforcement Officer Corrow review ed the 2010 achievements in n on - compliance enfo rc ement , education and outreach . Reviewed statistics of 2010 code violations. Identified the primary challenges as educating the public and motivating them to take pride in the community. Comments: Keeney : A sked about the City’s re quirements for sidewalk snow r e moval. Corrow : Replied that residents are asked not to push snow from driveway to street as that can create a traffic hazard. All s idewalks adjacent to property should be cleared within 48 hours of a sno w fall. Kansier : Ad ded that the City’s w inter maintenance policy designates which sidewalks the City will clear and those sidewalks that are not expected to be cleared. Keeney : Asked if there is any pushback regarding sidewalk snow removal. 2 03 07 11 City Council meeting minutes Kansier : Noted that a couple of areas are in the midst of construction and the sidewalks are under warra n- ty – those areas will be reviewed with next year’s winter maintenance policy. Keeney : Clarified that residents are not asked to remove snow from areas where the C ounty pushes up s ev eral feet of snow. Erickson : Queried about the newly reconstructed area on CR 12 where a retaining wall was constructed and residents cannot access the area behind that wall unless they walk to the end of the block to get around it. Asked who will be r esponsible for mowing the grass on the street side of the wall. Albrecht : Responded that, a s the ordinance exists, it is responsibility of the resident. Erickson : Believes that should be clearly defined as those areas may not get mowed. Albrecht : S tated that, h istorically, those areas do not do very well as they receive little moisture, there is not good drainage, etc. Erickson : Asked who cuts the grass or removes the weeds when the City has to assume that responsibil i- ty. Corrow : Replied that it is o utsourced to a third party. Costs are passed on to the property owner with a $25 surcharge. Erickson : Asked about ordinance regarding restraining pets on one’s own property . Corrow: Replied that as long as the pet is on the owner’s property, they do not have to be restrained. The ordinance is intended to protect against wandering dogs. Erickson : Asked about mobile signage. Kansier : Replied that the ordinance has provisions for marked vehicles and where they can be parked . Noted that each situ ation needs to be addressed individually to see if it meets ordinance and that marked vehicles are n ot allowed to remain in the public right - of - way. Soukup : Asked if there is a way to identify and penalize repeat offenders. Corrow : Affirmed he is aware of some chronic offenders. Noted they do not receive additional penalties, but extensions are not granted. Hedberg : Thanked Corrow for his services. Asked if assessed costs were successfully collected for jobs that were contracted out. Corrow : Affirm ed the cost is often paid and when not, it is added to the following year’s taxes. 2011 Parks Advisory Committee Report. Parks and Fleet Supervisor Friedges recapped the 2010 PAC goals. Stated he was pleased with the outcome of the field maintenance th at was completed by the local athletic organizations in 2010 . Noted that some school groups work on park maintenance in conjunction with the DNR. Com mented on other things the PAC collaborated with such as the J azz Festival, Stonebriar Park, oak wilt, pu blic trail surveys, water use grant application, etc. Discussed proposed 2011 PAC goals noting that goal development is based on public input, Council direction and the 2030 Vision and Strategic Plan . Comments: Soukup : Commented that the proposed goal s are impressive and believes that the park utilization and sustainability study will drive the other goals. Expressed excitement about conducting a pilot study at Sand Point Beach. Believes the tree inventory program will help manage oak wilt and emeral d ash borer. Hedbeg : Noted that several members of the PAC were in attendance at the meeting . Thanked them for the support and assistance they provide to the park department and recreation department. Keeney : Believes it is appropriate to spend tim e and energy to plan for and take care of the parks as they are a big part of Prior Lake . Noted that parks are l ong term projects and the right thing needs to be done year after year. Asked about the Sand Point Beach parking and striping project. Albrech t : Replied that the Traffic S afety Advisory Committee will consider the topic in the spring with the intent of bringing it back to the Council in April or May. 3 03 07 11 City Council meeting minutes Keeney : Asked if fees will be reviewed also. Albrecht : Replied that the park utilization a nd sustainability study will look at operations as a whole. Keeney : Asked if there is an update on oak wilt in parks. Friedges : Replied that 2010 experienced the most oak wilt seen in Prior Lake with a loss of more than 50 trees. None of the trees we re in City parks. Keeney : Supports collaboration with the SMSC on parks, natural resources, the Pike Lake area , etc . Erickson : Commented that p arks are part of the reason Prior Lake is a wonderful place to call home. Supports conducting the u tilizatio n study. Asked if there is a plan to have cross country skiing at Pike Lake . Friedges : Replied that cross country skiing could be done if chip trails were installed, but there is no plan to groom the trail. Erickson : Asked what the goal is for using th e house at Pike Lake Park. Albrecht : The City d etermined it should maintain the integrity of the house and garage in order to decide at a later date how the park should be used. If the house is taken down, the grant would not allow co n- struction of any b uilding in the future. Erickson : Asked about ho ur s of using the compost site. Friedges : Replied that the compost site will be gin operations at its current location in the spring, but the City plans to have a compost site drop off at the maintenance facil ity and to haul the materials to the new site when it is operational . SMSC might also invite Shakopee, Savage and Burnsville to partner with them in their new compost site. Erickson : Asked if any fencing will be installed at the community gardens . Friedg es : Responded that the community garden board contacted a person who live traps animals to co n- sider relocation of woodchucks. Erickson : Asked about the buckthorn program. Friedges : Replied that buckthorn removal is an ongoing project. Stated that the City has a buckthorn pick up program for residents - if they remove it from their own property, the City will pick it up. Residents can also use the City’s buckthorn pu l ler . Myser : Asked about the size and scope of grant opportunities for Pike Lake . Friedges : Replied he is unaware of any current grants to develop this type of park but staff continually searches out grant opportunities. Myser : Asked if any Legacy funds would be appropriate for this. Albrecht : Replied that Legacy grants seem to b e for land acquisition and are being awarded for regional or county parks. Myser: Thank ed the Parks Advisory Committee for its service to the City. Report on Spring Flooding Potential for Prior Lake. City Manager Boyles commented that the City needs to advise residents of the prospects for flooding and the resources available to protect against damage . Public Works Director Albrecht noted that this year has potential for flooding that could jeopardize sanitary sewer systems and roadways. Provided p robability st a tistics for floods and snow melt threats and reviewed a map of potential flood areas including sanitary lift stations and manholes and storm sewer drains . Staff will check the status of those areas regularly. Stated that the lake outlet has been upgraded over the past couple of years and should manage the lake levels better. Reviewed the Webpage set up for flooding preparedness information including information about resources such as FEMA and flood insurance. Streets and Utilities Supervi sor Wiita reviewed sand a c- cessibility for residents needing to bag areas of their property . An email communication system will be set up to provide updates for interested persons . Comments : Keeney : Asked about the Metropolitan Council sewer infras tructure that is built around the lake. 4 03 07 11 City Council meeting minutes Albrecht : Replied that the Met Council only owns the infrastructure from CR 82 north and the City owns the remaining infrastructure and will monitor those areas. Erickson : Noted that part of the outlet of the lake goes through Jeffers Pond and asked what is anti c- ipated to happen in that area . Alb r echt : Replied that channel stability will be monitored, culverts under the road will be kept clear of d e- bris and numerous areas of the City will be watched. Erickson : Asked if organization will be provided for people who want to volunteer. Albrecht : Replied that will be discussed at the next planning meeting. Soukup : Believes p eople will be glad to have the flood information and asked if there will b e a map to show what areas are in the 100 - year flood zone. Albrecht : Affirmed. Encourag ed people to get in touch with their insurance company to learn if they are in a FEMA flood zone. Hedberg : Stated he has observed highs and lows over the past 30 years and s uspects t he lake may get two feet higher than it is now. Suspects there will be extensive periods of no - wake enforcement this su m- mer. Hopes the upgraded outlet channel will a l low us to lower the levels and keep it manageable. Myser : Asked about the likelihood o f the lake reaching the 905 ’ mark. Albrecht : Affirmed that it appears as though it will approach that level and staff will continue to refine d a ta as we get closer to the event. Myser : Asked if there is any possibility of lowering the lake level now . Alb recht : Stated that as of March 1, the Prior Lake Spring Lake Watershed was allowed to lower the lake level and if there is an emergency need, will need to learn the process of going lower. Believes the channel pipe is flowing at full capacity right now a nd it is questionable whether permission will be granted to lower the lake level when the pipe gains some capac i ty. Myser : Asked if there is any indication of how many bags a homeowner might use based on footage of lakeshore on their lot. Wiita : Commente d that a majority of people use sandbagging to protect landscaping on lake shore lots. There will be a process for homeowners to purchase sand bags at the front desk. Noted that most res i- dents reuse the sand on their beach after the event has passed. Alb recht : Commented that on a river situation, the used sand bags are considered hazardous as sewer may have backed up. The lake sand should be clean. Myser : Asked if the bags should be put in the lake when they are done. Wiita : Replied that m ost people d ump the sand on their beach and put the bags in the garbage. Have not had issues with bags in the lake. Keeney : Asked if we mak e it worse for people downstream if we facilitate lowering the level of the lake. Albrecht : Replied that he will research what level would be allowed. Keeney : Understands that Prior Lake levels will continue to be higher rather than lower. Albrecht : Stated there are two prevailing issues: during potential flood times, there will be more water due to development; and in dry y ears there may be less water because development has created ponding, etc. Stated that the goal is to manage the flow. Keeney : Asked if Spring Lake has issues with flooding. Albrecht: Replied that the SE shore of S pring L ake has flooding potential with storm sewer issues. The outlet channel between the lakes was newly constructed and the integrity of th at channel will be watc h ed. PUBLIC HEARING Public Hearing to Consider Modifications to Various Liquor License Fees. City Manager Boyles r eviewed propo sed revisions to liquor license fees and identified how many license holders for each. Stated that a pproximately $204,000 in cost i s incurred annually to administer and enforce liquor - related activity while only $56,000 is received through the licensing p rocess . 5 03 07 11 City Council meeting minutes MOTION BY HEDBERG, SECOND BY SOUKUP T O OPEN THE PUBLIC HEARING. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried and the public hea r- ing opened at 7:52 p.m. Comments: Mark Schroeder , 4806 Rutledge Street, P resident of Prior Lake Amateur Baseball Association ( PLABA ) . Stated their on - sale 3.2 l icense has been at $200 and an increase to $500 is extreme for them . Stated they are a non - profit organization and a seasonal user at Memorial Field. Asked the Council to cons ider pro - rating the license fee for the p e riod of time each year that the liquor license is in use. MOTION BY ERICKSON, SECOND BY SOUKUP TO CLOSE THE PUBLIC HEARING. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried and the p ublic hea r- ing closed at 7:55 p.m. Comments: Boyles : Stated that the Council could consider changing the fees to what is proposed in the agenda r e- port, offer another revision or consider a tiered increase. Erickson : A sked if zoning requirements are the same for consumption and display licensure as for on - sale license. Pace : Replied that could be research ed . Erickson : Understands that the PLABA license would sustain a big increase and suggested it be i n- creased over a three - year period. Keeney : A sk ed about the costs of the DARE officer and whether they are significantly involved with und e- rage education and enforcement. O’Rourke : Replied that alcohol is one of the drugs that the DARE officer talks about in educational se s- sions . Noted that the Commu nity Safety Advisory Committee conducted a survey of important issues in the community , and drugs and alcohol were near the top of concerns. Keeney : Asked if PLABA has had any issues in conjunction with its beer sales. O’Rourke : Stated that c ompliance ch ecks are conducted. A violation occurred at Memorial Park in 2009 and a three - day sentence was served . Those very active with youth baseball are very cognizant of und e- rage users . They have only failed once and are mindful of it. Hedberg : Believes $200, 000 may be conservative in calculating the costs of enforcing liquor licenses. Does not believe liquor license holders are the source of all of the costs incurred with liquor. Asked how many l i censes are seasonal. Boyles : Replied that s eems to be unique to PLABA. Hedberg : Commented that the City has precedence for phasing in increases. Would favor on - sale malt liquor and wine license increases to be phased in over a three - year period. W ould consider a half license fee for PLABA since they use it only a partial year. Soukup : Believes the $100 rebate for training for off - sale liquor is good. Suggested that could be cons i- dered for on - sale servers too. Asked who the other on - sale 3.2 license e is and whether it is also a seaso n- al user . Hedberg : Captain Jack’s. Soukup : Asked if the City could mandate the training for re - licensing. Boyles : Stated that State Statute codifies training so all of the off - sale licenses will, in effect, be $280. Myser : W ill support increased fees associated with licenses. W ill support three - year phased - in changes for all increases. Stated he understands t he plea for the seasonal aspect noting that another licensee 6 03 07 11 City Council meeting minutes asked for consideration of volume of sales ; but stated that the associated costs impact the City regar d less of volume and season. Erickson : Q uestion ed the need for the phase - in for the wine license increase . Hedberg : Had suggested it for the two on - sale licenses for business economics. Myser : Suggested it be the same for all rather than to pick and choose li censes for application of the phase - in. Keeney : Stated he could support w hichever is easier for staff to administer on the smaller amounts. Will support a phase d - in increase for the on - sale wine and on - sale malt. Soukup : Concurred with Keeney, but note d that vendor training on identifying age should be added to on - sale l i cense requirements. Keeney: Stated he would support vendor training as a separate action rather than delay this action. MOTION BY HEDBERG, SECOND BY ERICKSON TO ADOPT THE FEE SCHEDU LE WITH A THREE - Y EAR PHASE - IN PERIOD FOR THE INCREASES F OR ON - SALE WINE LICENSE AND ON - SALE 3.2 MALT LIQUOR LICENSE S . VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Public Hearing to Consider Appeal of Saga Hills Wine an d Spirits LLC dba Prior Lake MGM Liquor. City Manager Boyles reviewed the ordinance regarding penalties to be applied when a liquor license holder incurs a violation. Informed the Council that the above has requested a hearing to appeal the pr e- sumptive pe nalty of a three - day su s pension. Comments: Hedberg: C larified that the penalty on the first violation includes no fine, but does include a three day su s- pension. MOTION BY KEENEY, SECOND BY HEDBERG TO OPEN THE PUBLIC HEARING. VOTE: Ayes by Myser, E rickson, Hedberg, Keeney and Soukup. The motion carried and the public hea r- ing opened at 8:20 p.m. Comments: Jim Peterson , 11027 Bell Oaks Estate Road, Eden Prairie, owner of Saga Hills Wine and Spirits LLC dba Prior Lake MGM Liquor. He a pologized for t he incident that occurred in Oc tober 2010 stating the behavior is not condoned. Stated that much training is conducted at a corporate level to eliminate sales to minors and the store tests employees twice per year . Described courses provided. Have a zer o tolerance a p- proach to sales to minors. Suggested that the City have a best practices policy and provided sample pol i- cies from nearby municipalities. Stated a three - day revocation would result in several thousand dollars of lost revenue as well as lost wages for employees. Stated he would rather pay a fine than be closed. Asked the Council to consider a different approach and come up with a way to educate license holders and offer an incentive for them to do well. MOTION BY HEDBERG, SECOND BY SOUKUP TO CLOSE THE PUBLIC HEARING. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried and the public hea r- ing closed at 8:33 p.m . Comments: Hedberg : Stated Prior Lake has had a reputation in the past for not monitoring or controll ing youth pu r- chase of alcohol and it is now taken very seriously. The best practices information from nearby cities was 7 03 07 11 City Council meeting minutes inte r esting noting that Prior Lake ’s approach to the penalty for a first instance is much harsher . Asked the City Attorney if the Coun cil ha s any leeway in administering penalties . Pace : Replied that the penalty structure can be deviate d for special circum s tances. Hedberg : Commented that he is not sure there are special circumstances. Noted that the first offense p e- nalty is significan tly harsher than neighboring cities and the impact on this license holder could be $5,000 - $7,000 which is significant. Do es not want to be inconsistent with past actions. Would be willing to consi d- er an alternative to the first violation p e nalty. Souku p: Understand s that other cities use a best practices program ; but whatever business one has, they are responsible for how they manage the business. Understand s the plight, but other liquor stores are complying. Noted that Prior Lake is a recreational c ity with boating, swimming, etc and there is more co n- sumption. With the penalty allowing the license holder to pick the three days they will be closed , it is not as impactful. Need to be a safe community. Erickson : Asked if they have electronic checking of IDs. Peterson : Replied there is electronic checking throughout MGM and concern was expressed from m any individuals that information was being gathered from their license. Believes that users with such a sy s tem - just swipe IDs and do not look at them . Believes that s ome people who are obviously older are offended if their ID is required. Erickson : Commented that people are used to producing an ID. Believes that if Council were to do an y- thing other than set out by ordinance, it should be for specia l circumstances . Asked Peterson if there was a special circumstance. Peterson : Replied that the e mployee had given notice that night and should not have been at the regi s ter that night. Does not believ e he has a special circumstance, but h opes that the ordinance will be changed. Erickson : Recalled an incident from a previous revocation of license noting that the license holder was r e- quired to install an electronic system in lieu of the temporary revocation. Suggested that if the Council b e- lieves this is a special situation, a fine could be imposed rather than the three - day revocation. Keeney : Commented on the best practices program of Burnsville and noted that it reflects a fine and a r e- vocation for those businesses not participating. Asked if M GM does the things on the list for best practi c es . Stated he would like the City to move towards a best practices program. Rather than reducing penalties, would favor business es invest ing in more training up front. Believes c urrent penalties scale to potential loss as it relates to potential sales to minors. Would consider ways to help the license holder in the f u ture, but is not inclined to reduce the penalty u nder existing o r dinance. Myser : Believes the license holder takes on responsibility whe n it decide s to sell alcohol and knows the requirements before starting. Stated the Council has a standing ordinance and there are no special ci r- cumstances so there is no reason under the law to give dispensation from this penalty. W ould support a revie w of policies to le arn if there is a new process, a way to positively incent people, or incur a lower cost to the City. Hedberg : Suggested the law will support a significant fine rather than a three – day suspension for this first of fens e. Myser : Asked what is perceived as a special circumstance . Hedberg : Replied he is not sure there is special circumstance and a motion would have to be accomp a- nied by separate direction to staff to review ordinance and possibly bring forward best practi c es. Pace : Sugge sted this issue should be dealt with based on the ordinance as it is written, and if the Council wishes to change fines, suspension or revocation of license, it should be done as a separate m o tion. O’Rourke : Stated that the previously referred to revocat ion of suspension had to do with tobacco sales. Stated that MGM had rules which they followed and terminated the employee who sold to a minor . The City also has rules which include no sales to minors. MGM infers that the City does not work with vendors , but the City provides training for any seller that asks for it. Believes it is not the City’s position to change the ordinance for every request. 8 03 07 11 City Council meeting minutes Keeney: Believes that a reduction in the penalty from a three - day suspension to a $2,000 fine would be too lenient in this case; regardless of the legality. Stated the m essage has to be to not sell to minors. The City cannot police every sale, but want s sales to minors to never happen. M otion by K eeney, second by Soukup to approve R esolution 11 - 032 aff irming the presumptive civil pena l- ties for S aga Hills Wine and Spirits dba Prior Lake MGM Wine and Spirits . Myser: Suggested the proposed resolution be amended to include, “the appellant stated there are no sp e- cial circumstances to deviate from the presu mptive penalties set out in Section 301.1704 (1). ” MOTION BY KEENEY, SECOND BY SOUKUP TO APPROVE RESOLUTION 11 - 032 AFFIRMING THE PRESUMPTIVE CIVIL PENALTIES FOR SAGA HILLS WINE AND SPIRITS DBA PRIOR LAKE MGM WINE AND SPIRITS; AN D AMEND THE PRESENTE D RESOL UTION TO INCLUDE “TH E APPELLANT STATED THERE ARE NO SPECIAL CIRCUMSTANCE S TO DEVIATE FROM TH E PRESUMPTIVE P E- NALTIES SET OUT IN S ECTION 301.1704 (1). ” Council members Keeney and Soukup accepted the offered amendment. VOTE: Ayes by Myser, Erickson, Hedber g, Keeney and Soukup. The motion carried. OLD BUSINESS Consider Approval of a Resolution Transferring Residual Fund Balances and Other Resources to the Ec o nomic Development Authority Special Revenue Fund. Finance Director Erickson spoke of the desire of the EDA to have a budget for administrative expenses and d evelopment of a strategic plan. Discussion was held with the EDA on whether to develop strategy first or resources first. Identified funds that could be transferred to the EDA totaling approximat ely $281,000 . Noted that the EDA would have to develop a budget and bring it to the Council for a p proval. Comments: Hedberg : Believes the EDA should complete a plan before funds are transferred. If there are EDA - related opportunities that arise before funds are transferred, the EDA could come to t he C ouncil to request funds. Soukup : The EDA is newly reconstructed and they should present a budget to Council. Regarding str a- tegic planning, the EDA needs to streamline its efforts with the Economic Develop ment Advisory Commi t- tee (EDAC). Favors waiting for a strategic plan budget. Erickson : Concurred with Hedberg to wait for the EDA to put the budget toget h er. Concurred with Soukup that the EDA C should be working with and reporting to the EDA . Keeney : St ated he is e agerly wait ing to see plans from the EDA. Believes there are opportunities to st i- m u late economic development and appropriate times and ways to do that. Stated his h esitation comes from caution after observing areas where econ omic dev elopment has been done wastefully or incorrec t ly. It is important to proceed cautiously and in a way that we don’t fall into temptations of a quick fix or throwing money at the problem. Stated he feels no lack of confidence in the EDAs ability to come up with a p lan for economic development. Asked how expenses are being paid on an interim basis until the EDA e s tablishes a bud g et. J. Erickson : Replied they have incurred minimal expenses that hav e been covered by the economic d e- velopment budget. No per diem requ ests have been received and bylaws indicate that such expenses must be paid out of the EDA Special Revenue Fund which currently has $102,000. Keeney : Stated he does not see an immediate need for transfer of funds. Myser : Asked what authority the EDA ha s over expenditure of special revenue funds at this time . 9 03 07 11 City Council meeting minutes J. Erickson: Replied that the $102,000 falls under the purview of the EDA, but they cannot spend money without having a budget. The City Council approves the budget and until that is done; the EDA c annot spend any money. Myser : Asked who makes the decision that expenditures for meals, tours and per diems are acceptable at this time. Boyles : T he EDA president and executive director. Myser : Asked if the transfer of funds entails any risk of funds b eing spent without approval by Cou n cil. J. Erickson : Bylaws indicate that the City Council must approve the budget which provides a check and balance that the EDA cannot spend outside of the established budget. Myser : Understood that there would be no ex penditure of funds until a plan was brought forth to the Cou n- cil. Commented on conversations at the Capitol and the risk of fiscal disparities being discontinued. Stated the City receives $750,000 in fiscal disparities each year. Believes the State budge t is under severe pre s- sure and th at money could go away at any time. Support s economic development because it provides jobs, services and tax revenues. Putting funds into an EDA budget would allow them to do pla n ning , which could not be moved forward with out Council approval. Hedberg : Stated he a greed with that perspective at the time of the last EDA meeting, but the planning process has potential for dragging out for a long time and perhaps delaying this action will serve as ince n- tive to move more qui c k ly. Erickson : Commented that delaying this action does not mean there is lack of focus on economic deve l- opment. Stated there is no risk in not transfer ring the funds at this time . Keeney : Stated that the p urpose of checks and balances is for when t hings go wrong and provided a sc e- nario for that possibility. State d he believes there will be a good plan, but it does not exist yet. Myser: Stated he does not perceive an issue since the Council has authority to disband the EDA and bring the funds back into the City budget. MOTION BY HEDBERG, SECOND BY ERICKSON TO DENY THE AGENDA ITEM IN ANTICIPATION OF THE SUBMISSION OF A BUDGET PRIOR TO TRANSFER OF FUNDS. VOTE: Ayes by Erickson, Hedberg, Keeney and Soukup. Myser nay. The motion carried. NE W B USINESS Consider Approval of a Report on the Status of Annexation Area 6.2. Spring Lake Township representatives Kathy Nielsen and Glenn Kelly were in attendance. Public Works Director Al brecht described the area proposed for annexation and the treatment capacity within the exis t- ing sanitary sewer and waterma i n . Stated that a f easibility study will identify whether or not the requested sewer extension should be done at this time and whether or not Sunset Trail should have a dry watermain installed even if water is not extended at this time. Commented that a ssessments could be significant and if the MS 429 process is used it would require that the resident assessment should be no greater than any benefit gained in property valuation. Staff suggested that the feasibility study be done by township eng i- neer, Bonestroo and the City and the Township would each fund 50% of the cost of study. Recommended co m pleting the survey work on the county road also. Comments: Keeney : Stated his understanding is that the overriding reason for the City to do this is the failing septic systems and water quality . Failing septic systems can be a significant source of water quality issues and he believes it is important to take care of it sooner rather than later. Stated the limitation to the project is the existing system ’ s inability to support additional development at this time . Seems the Township is r e- questing the City to annex this area at this time. 10 03 07 11 City Council meeting minutes Hedberg : Concurred . Stated he is e ager to meet with the Township representatives to move forward with common ground on the annexation agreement ; and if it is technically and financially feasible, would su p port moving forward with the agreement. Annexation could be defer red until bonds are paid off ; but that could hold up the development of other properties in area 6.2. S upports going forward with annexation if it is feasible. Erickson : Asked about the status of existing septic systems. Albrecht : Replied that the number of holding tanks on Sunset Avenue has not been confirmed, but a study can confirm such data. Erickson : Believes a nnexation should move forward . Proposed that a justification of the assessment could be that the properties are not saleable now. Soukup : Concurred that failing septic systems are a concern, the health of the lakes needs to be cons i- dered and homeowners are likely unable to sell. Supports the City and Township working together and sharing the costs of the feasibility study. Support s a n nexation. Myser: Asked the amount of the potenti al project cost. Albrecht : Believes the assessments may be close to $50,000 - $60,000 per property . Does not believe st a- tute consid ers whether a property can sell when deciding benefit, but rather the increase s in value of the property. The feasibility s tudy will consider the risk to the City if some of the assessments were a p pealed. Myser : Asked what property owners might have to pay for replace ment of their septic sy s tem. Albrecht : $15,000. Myser : Asked what the residents say about the proposed proj ect. Albrecht : Replied that n eighborhood meetings would be part of the feasibility study. MO TION BY HEDBERG, SECOND BY ERICKSON TO DIRECT STAFF TO WORK WITH SPRING LAKE TOWNSHIP TO COMPLETE A JOINTLY FUNDED SANITARY SEWER AND WATER EXTENSION FE A- SIBILIT Y STUDY FOR ANNEXATION AREA 6.2. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. OTHER BUSINESS Community Events Myser: Commented on the process of addition of items to the agenda stating that other members of the Counci l have brought forth items to be added in the past and believes he should be able to do so . R e ferred to bylaws section 401.11 regarding the authorities of the presiding officer. Erickson : Called for a point of order and asked for the City Attorney opin ion on whether an item could be added to the agenda at this time. Pace : Replied that under the bylaws sections cited by the Mayor, one of t he roles of the presiding offic er is to interpret procedure. Mayor Myser went through a PowerPoint presentation r egarding a budget process proposal; and offered comments on the General Fund balance. Requested a motion t o have staff present an investigative report that identifies the source of monies in the General Fund, when the monies were received and a recomme n- da tion for a process to maintain the General Fund at an agreed upon level. Comments: Hedberg : Voiced his objection to the request stating that such discussion is for work sessions scheduled for the preparation and the process of developing a budget . It is a redundant effort to do an investigative report to find out why there is an excess as all of those facts will come out in due course. Added that in the past the Mayor has made a point of stating his disapproval when the Council does not get materials ah ead of time for consideration noting that this material was not offered before the meeting. Even though the 11 03 07 11 City Council meeting minutes Council denied these topics for the agenda, they were brought forth anyway. Noted that at a previous meeting discussing the budget, the Mayor stat ed that he was ashamed of the status of a surplus and pr o- ceeded to throw out ideas which were then legislated in the m edia. Stated his objection to having the Mayor spring ideas at the Council meeting without discussion with the City Manager about agenda prepar a- tion and a compar i son with existing work sessions to see how the topic lines up with the schedule. Myser : Responded that the media reports are cut short , thereby presenting the story th at the media wis h- es to tell. Expressed his opinion that the pu rpose of the General Fund is to support cash flow, one - time events, etc. Stated he wants to use a p ublic input process, but not distort the decision - making process. Believes it is the resident’s money and the Council needs to ask what is the best use of it and favor s a r e- bate. Hedberg: Stated there is a work session specifically established to address the general fund reserve and financial policies. Stated he does not know the purpose of highjacking that process. Myser : Replied that he does not b elieve he has highjacked a process stating the issue was brought up at the last Council meeting. Does not feel the severity of the budget process and the issue – believes it is i m- portant in a democratic society to bring those ideas forth . Hedberg : Respon ded that the Council is a legislative body with tightly controlled methods of communic a- tion. It is not an open democratic process, but rather is a tightly controlled process. Believes that t hro w ing ideas out for debate in the public without any communica tion or materials delivered to the Council in a d- vance creates bad process. Myser : Stated he first broached th is subject at the last Council meeting. Recalled that the Treasurer’s r e- port was on the consent agenda. His issue with that occurrence was tha t the Council did not understand the severity or size of the surplus which he believes might have had an impact on Council decisions. B e- lieves it is p aramount as an elected official to bring it forward as soon as possible . Hedberg : Stated that it was brought forward in an inappropriate way by first indicating shame and then by stating the funds should be rebated. Rebates are a very loaded issue. Recalled that the State rebated a surplus and within one year of the rebates, school districts were in tro uble and the state budget started fal l- ing apart. Reiterated that t he materials brought forth at this meeting should have been sent to the Cou n cil in advance. Myser : Responded that the City is not the State. Credited previous councils and staff for not r unning def i- cits in bad econo mic times . Highlighted that now there is more money than we expected to collect from re s idents . B elieves the topic should be debate d . Hedberg : Queried why it would be brought up with no advance communication or materials when it is scheduled for a work session. Myser : Stated he felt the need to communicate where he was coming from. Erickson : Concurred that the City is not the State and, therefore, this discussion is not about income ta x- es, but rather about property taxes. Noted that when working with income taxes, it is known who paid the tax and how to give it back. With property tax es, the payments could be coming from a property in forecl o- sure, or a person who is behind on payments with a mortgage company pay ing out o f an escrow a c count . There may be many scenarios where the owner of record isn’t necessarily the entity who is paying the tax so it would be difficult to ascertain to whom a rebate should be paid . These funds should be co n sidered by the Council for what is best for the residents. Suggested some of the options might be reduc tion of taxes in a coming year or use for a special project. It is something the Council should debate through process and a rebate should not be offered up as the solution until it i s di s cussed. Keeney : Stated he is not prepared to discuss this presentation since he did not get it in advance. Believes the Council should be open to putting a topic on the agenda or on work sessions when there is a need to debate new information , cha nge a process or schedule a work session. Believe s it is appropriate to bring forward such topics in the “Other Business” portion of the agenda and that it could be appropriate to direct staff to schedule these items on a work se s sion to prepare the Coun cil for a discussion. 12 03 07 11 City Council meeting minutes Soukup : Commented that the Channel 9 interview looked like it was live in the newsroom. Restated that the Mayor indicated good, honest, transparent government should be key and she does not believe that bringing this topic before th e court of public opinion on the news justifies that statement . The Council should have had this material in work session for discussion. Believes that, a s a governing body, Council members need to respect each other ’ s opinions or beliefs and that was no t done this evening or this wee k- end. Myser: Stated that , to clarify, his interviews were all held on the same day and it was not live at the news station. Stated that, as Mayor, he some times has the responsibility to speak for the Council outside these Chambers ; and sometimes he addresses his own views . Stated that he always tries to identify that and b e- lieves he handled it appropriately during these interviews. Stated he will only talk about Council when it is a Council decision, oth erwise will ident ify that it is his view. Commented that he w ould rather err on the side of letting each Council member add item s to the agenda, that it has been done in the past and he will continue to tolerate it in the future. ADJOURNMENT With no further comments fro m Council members, a motion to adjourn was made by K eeney and seconded by H edberg . With all in favor, the meeting adjourned at 10:24 p.m. _ ___ _______________________________ __ ________________________________ _ Frank Boyles, City Manager Charlotte Green, Administrative Asst. 13 03 07 11 City Council meeting minutes