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HomeMy WebLinkAboutDraft 03/21/11 Minutes4646 Dakota Street SE Prior Lake, MN 55372 REGULAR CITY COUNCIL MEETING MINUTES March 21, 2011 CALL TO ORDER The meeting was called to order at 6:00 p.m. Present were Mayor Myser, Council members Erickson, Hed- berg, Keeney and Soukup, City Manager Boyles, City Attorney Pace, Public Works Director Albrecht, Streets and Utilities Supervisor Wiita, Interim City Engineer Poppler, Building and Transportation Services Director Kansier, Finance Director Erickson, Community Development and Natural Resources Director Parr, Planner Matzke, Assistant City Manager Meyer and Administrative Assistant Green. PUBLIC FORUM The Public Forum is intended to afford the public an opportunity 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 pri- vate 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 City Manager Boyles stated that the matter intended to be discussed at an executive session has been resolved so it can be removed from the agenda. MOTION BY ERICKSON, SECOND BY KEENEY TO APPROVE THE AGENDA AS MODIFIED. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. APPROVAL OF MEETING MINUTES MOTION BY HEDBERG, SECOND BY SOUKUP TO APPROVE THE MINUTES OF THE MARCH 7, 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 February 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. Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com MOTION BY KEENEY, SECOND BY ERICKSON TO APPROVE THE CONSENT AGENDA AS PRE- SENTED. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. PRESENTATION Concept Plan for a Charter School to be known as Aspen Academy. Planner Matzke provided background information on the site stating that the property is zoned C -2 and is currently vacant. Aspen desires to renovate the building into a 25- classroom school and would be leasing the property from a third party. Under current ordinance, changing the land use would require either rec- lassifying the comprehensive plan to residential or amending the ordinance to allow an education (academ- ic) use in a C -2 zone. Stated the property would remain on the tax roll as the school would be leasing from a for profit owner. The 300 -foot liquor license buffer for a school would apply, so future development of surrounding lots would be prohibited from liquor licensure with this use. Representatives of Aspen Academy, Kou Vang of JB Realty, Cynthia Sherar, Director of Aspen Academy, and Jeff Reistad, Board Chair for Aspen Academy introduced themselves and provided information about Aspen Academy. Vang described the changes they propose to make to the existing building. Explained that Aspen Academy found a group of investors who would buy the property, renovate it and lease it back to them on a ten -year renewable lease plan. Renovation plans include interior reconfiguration to class- rooms, but the exterior would remain essentially the same. Comments: Soukup: Asked what implications might result if the City changed zoning and whether Aspen has consi- dered whether developers would be interested in the adjacent undeveloped lots. Vang: Responded that in other municipalities, charter schools are not restricted to particular zoning dis- tricts, but rather receive a conditional use permit. Stated that Prior Lake has chosen to put schools in resi- dential zoning; but he believes activities in schools are more reflective of commercial areas when consider- ing times of activities and traffic patterns. Believes this use of the site would be an asset to development and not viewed as negative in this area. Hedberg: Asked the expected capacity of students for this building. Vang: 525. Hedberg: Asked if the Academy plans to cap its enrollment at 525; and if the Academy plans to lock itself into a ten -year program with the proposed lease. Vang: Replied that Aspen Academy is a K -8 charter school and they would need to cap enrollment at 525 and establish a waiting list after that level of enrollment is reached. Hedberg: Commented that rezoning is a long -term decision and it would be a concern for the City if this use was established for 10 years and then Aspen moved out and left an empty building. Stated that as- surances that can be provided for long -term usage will be an important consideration. Noted that several Commissioners made complimentary comments regarding educational policy at the Planning Commission meeting; but his view is that it is not the Council's role to make educational policy, but rather that the Coun- cil needs to consider whether this is an appropriate use in a commercial district, or the implications of re- zoning the property to residential. Desires to address the concern that commercial property is in short supply and converting this to residential deserves consideration about whether development of the remain- ing three lots might be impaired as commercial properties since no liquor license could be allowed and the character of development will feel different. Expressed concern about traffic flow. Asked staff if they have considered a "swap out' in the comprehensive plan to rezone this entire area to high density residential and exchanging it for a current residential area that could be better used as commercial. DRAFT 03 2111 City Council meeting minutes Parr: Replied that staff has discussed that idea, but prefers to have that discussion in a comprehensive plan amendment forum. Keeney: Asked if most students currently attending the Academy are being transported rather than walk- ing. Vang: Affirmed. Added that they have no busing program, but parents carpool and currently 100 -120 cars are managed each morning. Keeney: Commented that he presumes the potential property owners are informed about the lease and structure of ownership and will desire to minimize tax exposure thereby moving toward tax exempt status. Vang: Responded that they have not sought tax exempt status in any building they have established. Be- lieves the tax status consideration warrants conversation with the City Attorney to gain that opinion. At this point, there is no plan for this property to be off the tax roll. Keeney: Asked what characteristics of this site make it attractive for the school. Sherar: Stated they sought a building that was large enough and within their financial means. A charter school cannot levy taxes. Commented that they do not have a large enough enrollment base to purchase the property so they seek a lease arrangement. Keeney: Queried whether the 300 foot buffer means that an establishment with a liquor license cannot be within 300 feet v. just the entry point to that establishment. Matzke: Responded that none of the parcels shown could have a liquor license. Keeney: Asked, if the zoning were changed, whether the property would remain an R use district if some- thing happened to make the school unsuccessful. Matzke: Replied that the building could be renovated into a residential type of building. Keeney: Questioned whether the infrastructure is set up to serve high density housing. Matzke: Responded the current infrastructure could accommodate a school. Keeney: Asked if there would be difficulty with the additional traffic. Matzke: Responded that a traffic study will be recommended as part of any future action for this project. There is a traffic signal anticipated for that intersection in the future. Keeney: Stated he will want answers to the concerns that have been brought up. Believes this project would change the character of the neighborhood and consideration will have to be given about what the Council is trying to guide here. Erickson: Asked if the goal at end of 10 years is to transfer ownership to the school or to continue leasing. Vang: Replied that the proposed lease will have two10 -year options to renew. Erickson: Commented that charter schools are often found in commercial buildings and he would not support rezoning if this goes forward. Concurred it is not the Council's position to consider whether or not a charter school is desirable from an educational point of view. Myser: Referred to earlier comments from representatives about the success of their school and asked about math scores and teaching methods. Sherar: Replied that a new teacher was hired and additional teacher training provided. Myser: Asked about the potential commercial tax and whether staff perceives a future possibility that the City might not collect them on this property. Matzke: Described tax exempt status criteria which include having a property owned by a non - profit. Be- ing owned by a for - profit does not entitle to tax exemption, but the City would not have control over any change in status in the future. Myser: Commented that from the City's perspective, a for - profit could sell to a non - profit and that would be a risk. Believes at issue is short-term v. long -term decision - making and expressed concern about changing commercial property to residential zoning. Noted that the Council's current priority is economic develop- ment; and it is considering what to do to bring restaurants into the community with the likelihood of liquor li- censes. This concept could potentially lose sites for that. Would be interested to learn if there are mechan- isms to allow the comprehensive plan to exchange residential for commercial properties. DRAFT 03 2111 City Council meeting minutes 3 PUBLIC HEARING No public hearing was scheduled. OLD BUSINESS No old business was scheduled. NEW BUSINESS Consider Approval of a Resolution Accepting Quotes and Authorizing the Mayor and City Manager to Execute a Contract for Refuse Pick Up and Disposal Services. Public Works Albrecht reviewed quotes received for refuse and recycling pick -up and disposal services and noted that a three -year contract is proposed. Comments: Erickson: Will support. Stated he is pleased that a local company provided the low bid. Keeney: Asked what creates the volume of refuse at the maintenance center. Albrecht: Replied that parks refuse receptacles are emptied by City staff and stored at the maintenance center for the refuse company pick -up. Keeney: Supports a three -year contract. Hedberg: Noted this contract will also save money from the previous contract. Will support. Soukup: Will support. Myser: Will support. MOTION BY HEDBERG, SECOND BY KEENEY TO APPROVE RESOLUTION 11.033 ACCEPTING QUOTES AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY'S STAN- DARDIZED CONTRACT FOR REFUSE PICKUP AND DISPOSAL. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Consider Approval of a Resolution Approving the Memorandum of Agreement for the Southwest Metro Groundwater Group. Public Works Director Albrecht stated that this group has worked together since 1997 to provide collabo- ration on decisions that impact groundwater supplies for all of the entities to facilitate management of that resource. Comments: Soukup: Stated it is impressive to see everyone working together and noted that this incurs no additional cost to the City. Hedberg: Glad this is being renewed. Stated that water quality and management is very important and it is smart to approach it cooperatively. Will support. Keeney: Asked if this will limit the City's ability to put in its new well. Albrecht: Replied that the City already has limitations from the DNR water permit. The City has been granted the capacity of one more well on the east side of the lake. Noted that Savage is even more limited because of other high capacity wells nearby. Keeney: Asked if there are any concerns related to the clauses that exclude the SMSC. Albrecht: Replied that the SMSC participates fully and is a good partner in the agreement. From a legal standpoint, they cannot enter into the same kind of agreements as the cities. Erickson: Asked about Burnsville surface water and how that use will affect this. 4 DRAFT 03 2111 City Council meeting minutes Albrecht: Responded that Burnsville mixes groundwater with surface water. Stated there is little likelihood of that impacting Prior Lake, but it provides alternative sources of water if needed. Potentially all of the communities will be connected. Erickson: Asked if the surface water use provides a benefit of not extracting groundwater. Albrecht: Affirmed, noting the primary benefit is taking the pressure off groundwater resources. Myser: Asked about unaccounted for water amounts. Albrecht: Replied that the City bills for the water it pumps, but not at 100% as there is water loss due to watermain breaks, flushing, etc. When accounting for the lost revenue of unmetered water, the City tries to account for that amount and have it be less than 10% of volume. More than 10% would be considered ex- cessive and causes would be sought such as defective meters, etc. Myser: Asked about the City's range of unaccounted for water. Albrecht: Replied that the City has ranged from 6% to 12% and is slightly over 10% right now. Noted that the City is in the process of metering municipal usage, including park facilities, and will learn whether water is being lost or has just been unmetered in the past. Myser: Asked what the City's statistics are in regards to the goal for residential demand of approximately 75 gallons per capita per day. Albrecht: Replied that communities that are growing with new homes and new landscaping are typically at 100 or greater and Prior Lake falls into that category. Established cities generally have water use just for people living rather than for establishing yards. Myser: Asked if Prior Lake might not always be higher to maintain the larger yards, etc. Albrecht: Affirmed, noting that some communities have smaller lots and fewer automatic sprinkling sys- tems than Prior Lake does. Myser: Clarified that there are no changes to this agreement and it is just a renewal. Albrecht: Commented that the communities involved seem to be fine without agreement in place, but the Metropolitan Council seeks to have it renewed as their goal is to have regional groups to enhance aware- ness of interconnectedness. MOTION BY SOUKUP, SECOND BY HEDBERG TO APPROVE RESOLUTION 11.034 APPROVING THE MEMORANDUM OF AGREEMENT FOR THE SOUTHWEST METRO GROUNDWATER GROUP. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Consider Approval of a Resolution Approving a Payment Agreement with Le Management Proper- ties LLC for the Payment of City Fees for the Fong's Banquet Center. Building and Transit Services Director Kansier explained the recalculation of SAC (sewer accessibility charges) units with a banquet center use and associated fees. Described a proposed agreement that will allow the property owner to enter into a three -year payment plan for the City portion of fees, stating the City will assess an interest charge to offset costs associated with deferring total payment over that time period. Costs will be assessed to the property taxes. Comments: Keeney: Asked if the process of accounting for the loaned money should be done through the economic development budget. J Erickson: Replied she plans to record it as receivables and revenue. Receivables will be reduced as funds are received each year. Keeney: Will support. W. Erickson: Will support. Noted that most of the money being paid is being moved to the Met Council for SAC fees. DRAFT 03 2111 City Council meeting minutes Kansier: Explained how SAC fees are assessed and how they are used to pay for capacity in the sewer infrastructure. W. Erickson: Believes SAC fees are sometimes a surprise for people who want to develop their property and noted that the City does not control SAC fees. Soukup: Queried whether this arrangement could be used as an economic development tool for entities who might want to come to the City. Kansier: Replied that if such agreements were done on a larger scale, the City might want to consider charging administrative costs. Hedberg: Commented that the provision in City Code that allows connect fees to be spread out in remode- ling cases has not been used before, but has proved helpful in this case. SAC fees are a necessary cost of doing business. Stated he is glad this developer could be helped as the banquet center will be a positive addition to the downtown and business community. Myser: Asked if, for example, this model is used for others and in the second year the business proved not to be successful; would the third year's assessment of cost still be applied to a property. Kansier: Replied the property would still be liable for the full assessment. If the building should be sold, the remaining balance would be paid at the time of sale. Myser: Asked if SAC fees would still need to be paid if there were changes in SAC units. Kansier: Affirmed. Stated that provision is included in the event the use is adjusted to have increased seating and additional SAC units need to be charged. Myser: Believes this action incurs no financial risk for City. Should this become formal policy for the fu- ture, consideration should be given to thresholds, interest fees or any other issues that might be involved. MOTION BY SOUKUP, SECOND BY HEDBERG TO APPROVE RESOLUTION 11.035 APPROVING A PAYMENT AGREEMENT WITH LE MANAGEMENT PROPERTIES LLC FOR THE PAYMENT OF CITY FEES FOR THE FONG'S BANQUET CENTER. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Consider Approval of a Report Establishing Key Dates and Topics Related to the Preparation of the 2012 Budget. City Manager Boyles reviewed proposed steps and timeline for development and adoption of the 2012 budget and CIP. Noted that some City Council meetings would begin later to accommodate longer work sessions. Comments: Hedberg: Noted there has been a similar process in the past for developing the budget and CIP and sup- ports publishing the schedule for the public. Supports the proposed lengthier work sessions which will re- sult in Council meetings starting at 7 p.m. Suggested staff be directed to bring forward a bylaws amend- ment to change the start time of City Council meetings to 7 p.m. Soukup: Stated she supports the timeline, discussion topics and longer work sessions to allow thorough discussion. Supports starting the Council meetings at 7 p.m. Erickson: Concurred the City has had an orderly process for arriving at the budget. Supports the pro- posed schedule. Keeney: Supports having this formal process and agreed there is a need to have these discussions over several work sessions. Agreed that interested members of the public should be aware of the schedule. Noted that the long -range plan will be discussed soon and urged people to provide input to Council on where the City should be regarding maximum levy and size of the budget. Concurred with changing the City Council meeting start time to 7 p.m. Myser: Agreed this schedule will refine and support the budget process. Supports the 7 p.m. start time. 6 DRAFT 03 2111 City Council meeting minutes MOTION BY HEDBERG, SECOND BY SOUKUP TO ADOPT THE 2012 BUDGET DATES AND TOPICS AS PRESENTED BY THE CITY MANAGER. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. MOTION BY HEDBERG, SECOND BY SOUKUP TO DIRECT STAFF TO EVALUATE THE FEASIBILITY OF AND DRAFT THE NECESSARY BYLAWS CHANGES TO PERMANENTLY CHANGE THE CITY COUNCIL START TIME TO 7 P.M. AND PRESENT IT AT THE NEXT COUNCIL MEETING. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. OTHER BUSINESS Community Events Hedberg: Commented that the Council received a General Fund history report of surpluses and fund bal- ances at tonight's work session which will be considered in detail at upcoming work session. Noted that the report reflects that 13 of the last 21 years had unbudgeted expenditures or transfers out of reserve funds and there were reserves for all of those years. For the public's benefit, the City needs to run modest sur- pluses. Noted that the budget will grow if the City is growing and there is a base level of inflation; and as it grows, there is a need to increase the general fund reserve balance in order to maintain an appropriate level of reserves. Over the years, City Councils have found a variety of reasons why it was important to use special opportunity spending out of reserves such as setting up the park equipment replacement fund, acquiring the Pike Lake property, etc. Myser: Requested an update on flood planning. Albrecht: Replied that the Minnesota River is rising about two feet per day and flooding is expected in the next couple of days. The elevation of Spring Lake and Prior Lake is increasing in elevation about 2.5 inch- es a day. Wiita: Added that the National Weather Service put the area in flood watch with more than two inches of precipitation expected in the next 24 hours. To date, 37 tons of sand have been delivered to various resi- dents. Have added a chart to the City Website to help residents determine how many bags of sand they might need; as well as contact information. Staff is monitoring the outlet channel, some trees have floated near Fire Station No. 2 that must be removed and a sanitary sewer manhole has been bagged. Albrecht: Stated that the lake is at 902.6 elevation and is anticipated to reach 905. At 904 many proper- ties will incur damage to beachheads, and the sanitary sewer starts to be jeopardized. Wind action could cause ice to be pushed up on shorelines causing damage. Myser: Congratulated resident Susan Hadley for receiving the Ann Bancroft award given for helping wom- en in abusive situations. Reviewed Hadley's biography of accomplishments. ADJOURNMENT With no further comments from Council members, a motion to adjourn was made by Erickson and seconded by Hedberg. With all in favor, the meeting adjourned at 7:45 p.m. Frank Boyles, City Manager Charlotte Green, Administrative Asst. DRAFT 03 2111 City Council meeting minutes 7