HomeMy WebLinkAbout03 21 11 City Council minutes
4646 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, He d-
berg, Keeney and Soukup , City Manager Boyles, City Attorney Pace, Public Works Director Albrecht ,
Streets and Utilities Supervisor Wiita, Interim City Engi neer Poppler, Building and Transportation Services
Director Kansier, Finance Director Erickson, Community Development and Natural Resources Director
Parr, Planner Matzke, Assistant C ity Man ager Meyer and Administrative Assis tant 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 pr i-
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 for mal 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 APPRO VE THE MINUTES OF THE MARCH 7 , 2011
MEETING AS PRESENTED.
VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried.
CONSENT AGE NDA
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 952.44 7 . 4245 / www.cityofpriorlake.com
MOTION BY KEENEY , SECOND BY ERICKSON TO APPROVE THE CONSENT AGENDA AS PR E-
SENTED .
VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried.
PRESENTATION
C oncept 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 lea s ing
the property from a third party. Under current ordinance, changing the land use would require either re c-
lassify ing the comprehensive plan to residential or amend ing the ordinance to allow a n education (acade m-
ic) use in a C - 2 zone. State d 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 clas s-
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 cons i-
dered whether develop ers would be interested in the adjacent undeveloped lots.
Vang : Responded that in other municipalities, charter schools are not restricted to particular zon ing di s-
tricts, but rather receive a conditional use permit . Stated that Prior L ake has chosen to put schools in res i-
dential zoning ; but he believes activities in schools are more reflective of commercial areas when conside r-
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 expecte d 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 ch arter 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 r ezoning is a long - term decision and it would be a concern for the City if this
use was established f or 10 years and then Aspen move d out and le ft an empty building. Stated that a s-
surances that can be provided for long - term usage will be an important consideration. Noted that several
Commissioners made complimentary comments regarding educational pol icy at the Planning Co m mission
meeting; but his view is that it is not the Council’s role to make educational policy , but rather that the Cou n-
cil needs to consider whether this is an appropriate use in a commercial district, or the implications of r e-
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 remai n-
ing three lots might be impaired as commercial proper ties since no liquor license c ould 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 densit y residential and
exchanging it for a current residential area that could be better used as commercial.
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Parr : Replied that staff has discussed that idea, but prefers to have that discussion in a comp rehensive
plan amendment forum.
Keeney : Asked if m ost student s currently attending the Academy are being transported rather than wal k-
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 minimiz e tax exposure thereby mo v ing toward tax exempt status .
Vang : Responded that th ey have not sought tax exempt status in any building they have e stablished. B e-
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 attrac tive 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 ca n not 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 som e-
thing happened to make the school unsuccessful.
Matzke : Replied that the building could be renovated into a residential type of buil d i ng.
Keeney : Questioned whether the i nfrastructure 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 : Responde d 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. Believe s 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 lea sing.
Vang : Replied that the proposed lease will have two 10 - 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
cha r ter 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 : R eplied 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. B e-
ing owned by a for - profit does not entitle to tax exemption , but the City would not have control over any
change in st a tu s in the future.
Myser: Commented that from the Ci ty’s p erspective , 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 c urr ent priority is economic develo p-
ment; and it is considering what to do to bring restaurants into the community with the likelihood of liquor l i-
censes. This concept could potentially lose sites for that. Would be interested to learn if there are mecha n-
ism s to allow the comprehensive plan to exchange residential for commercial prope r ties.
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PUBLIC HEARING
No public hearing was scheduled.
OLD BUSINESS
No old business was scheduled.
NE W BUSINESS
Consider Approval of a Resolution Accepting Quotes and A uthorizing the Mayor and City Manager
to E x ecute 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 t hree - year contract is proposed.
Comments:
Erickson : Will support. Stated he is pleased that a l ocal 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 : S upports a three - year contract.
Hedberg : Noted this contract will also save money from the previous contract. Will su p port.
Soukup : W ill support.
Myser : Will support.
MOTIO N BY HEDBERG, SECOND BY KEENEY TO APPROVE RESOLUTION 11 - 033 ACCEPTING
QUOTES AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY’S STA N-
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 collab o-
ration on decis ions 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 addi tional
cost to the City.
Hedberg : Glad this is being renewed. Stated that w ater quality and management is very impor tant 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.
Al b recht : Replied that the City already has limitations from the DNR wa ter permit. The City has been
granted the capacity of one more well on the east side of the lake . Not ed 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 ex clude 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 agree ments as the cities.
Erickson : Asked about Burnsville surface water a nd h ow th at use will affect this.
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A lbrecht : 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
commun ities will be connect ed .
Erickson : Asked if the surface water use provides a benefit of not extracting groundwater.
Albrecht : A ffirmed , noting the primary benefit is taking the pressure off groundwater resources.
Myser : Asked about unaccounted for water amounts.
Albrecht : Repli ed that the City bills for the water it pumps , but not at 100% as there is water loss due to
watermain breaks, flushing, etc. W hen accounting for the lost revenue of unmetered wa ter, the City tries to
account for that amount and have it be less than 10% of volume. More than 10% would be considered e x-
cessive and causes would be sought such as defe c tive 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 s lightly 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 stat istics are in regards to the g oal 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 tha t 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 communiti es have smaller lots and fewer automatic sprinkling sy s-
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 agreemen t in place, but the
Metropolitan Council seeks to have it renewed as their goal is to have regional groups to enhance awar e-
ness of interconnectedness.
MOTION BY SOUKUP, SECOND BY HEDBERG TO APPROVE RESOLUTION 11 - 034 APPROVING THE
ME M ORANDUM OF AGREEMENT F OR 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 Prope r-
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 own er 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 ta x es.
Comment s:
Keeney : Asked if the process of accounting for the loaned money should be done through the economic
development budget.
J Erickson: Replied she p lans to record it as receivable s and revenue . R eceivable s will be reduced as
funds are received each ye ar.
Keeney : W ill support.
W. Erickson: W ill support. Noted that most of the money being paid is being moved to the Met Council for
SAC fees.
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Kansier : Explained how SAC fees are assessed and how they are used to pay for capacity in the sewer
infrastruc ture.
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 a n economic development tool for en tities
who m ight 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 fee s to be spread out in remod e-
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 th e banquet center will be a positive
add i tion to t he 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 prope r ty.
Kansier : Replied th e 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 : A ffirmed . Stated that provision is included in the event the use is adjusted to have increased
seating and a dditional SAC units need to be charged.
Myser : Believes this action incurs no financial risk for City. Should this become formal policy for the f u-
ture, consideration should be given to thresholds, interest fees or any other issues that might be i n volved.
MOTION BY SOUKUP, SECOND BY HEDBERG TO APPROVE RESOLUTION 11 - 035 APPROVING A
PAYMENT AGREEMENT WITH LE MANAGEMENT PROPERTIES LLC FOR THE PAYMENT OF CI TY
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 rev iewed 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
ses sions.
Comments:
Hedberg : Noted there has been a similar process in the p ast for developing the budget and CIP and su p-
ports publishing the schedule for the public . Support s the proposed lengthier work sessions which will r e-
sult in Council meetings starting at 7 p.m. Suggested staff be directed to bring forward a bylaws amen d-
m ent 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 pr o-
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 t he 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 Coun cil meeting start time to 7 p.m.
Myser : Agreed this schedule will refine and support the budget process. S upports the 7 p.m. start time.
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MOTION BY HEDBERG, SECOND BY SOUKUP TO ADOPT THE 2012 BUDGET DATES AND TOPICS
AS PRESENTED BY THE CITY MANAGER.
VOT E: 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 r eceived a General Fund history report o f surpluses a nd fund ba l-
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 transfer s out of reserve funds
and there were reserves for a ll of those years. For the public’s benefit, the City needs to run modest su r-
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 r eserve bal a nce 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 set ting up the park equipment replacement fund,
acqui r ing the Pike Lake pro p erty, 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 L ake is increasing in elevation about 2.5 inc h-
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 res i-
dents. Have added a chart to the City W ebsite 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 F ire S tation N o. 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 prope r-
ties will incur damage to beachheads, and the sanitary sewer starts to be jeopardized. Wi nd action could
cause ice to be pushed up on shoreline s causing damage.
Myser : Congratulated resident Susan Hadley for receiving the Ann Bancroft award given for helping wo m-
en in abusive situations. Reviewed Hadley’s biography of accomplishments.
ADJOU RNMENT
With no further comments from Council members, a motion to adjourn was made by E rickson and
seconded by H edberg . With all in favor, the meeting adjourned at 7:45 p.m.
_ ___ _______________________________ __ ________________________________ _
Fran k Boyles, City Manager Charlotte Green, Administrative Asst.
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