Loading...
HomeMy WebLinkAbout11 13 12 City Council minutes 4646 Dakota Street SE Prior Lake, MN 55372 REGULAR CITY COUNCIL MEETING MINUTES November 13 , 2012 CALL TO ORDER The meeting was called to order at 7:00 p.m. Present were Mayor M yser, Council members Erickson, Hedberg, Keeney and Soukup , City Manager Boyles, City Attorney Rosow, Finance Director Er ickson, City Engineer / Inspections Director Poppler, Project Engineer Thongvanh, Public Works/Natural Resources Director Gehler, Public Works Supervisor Theisen, Natural Resources/F acilities /F leet Manager Friedges, Communication and Economic Development Director Rogness, Assistant City Manager Kansier , Assistant City Manager Meyer and Administrative Assi s tant Green. PUBLIC FORUM The Public Forum is intended to afford the public an opportunity to address concerns to the City Council. The Public Foru m 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 private or polit i cal agendas. Topics may be addressed at the Pu blic 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 Cou n cil, the Economic Development Authority (EDA), Planning Commission, or any other City Ad visory 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 Consent Agenda Item 5D should be removed from the agenda as it is not yet prepared for approval ; Item 8C should be labeled as such ; and the Executive Session was cond ucted at 4:30 p.m. this evening and, therefore, is no longer on this agenda. MOTION BY HEDBERG, SECOND BY SOUKUP TO APPROVE THE AGENDA AS MODIFIED. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. APPROVAL OF MEETING MINUTES MOTION BY ERICKSON, SECOND BY KEENEY TO APPR OVE THE MINUTES OF THE OCTOBER 22 , 2012 CITY COUNCIL MEETING. 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 Claims L isting B. Consider Approval of Third Quarter 2012 Investment Report C. Consider Approval of Third Quarter 2012 Financial Report D. Consider Approval of a Resolution Ratifying the 2012 - 2014 Labor Agreement Between Law Phone 952.447. 9800 / Fax 952.44 7 . 4245 / www.cityofpriorlake.co m Enforcement Labor Services Represent ing Patrol Officers and Detectives for the City of Prior Lake Councilmember Keeney requested that item 5C, Consider Approval of Third Quarter 2012 Financial Report be removed from the Consent Agenda for comment. MOTION BY SOUKUP, SECOND BY KEENEY TO A PPROVE THE CONSENT AGENDA AS MODIFIED. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Keeney: Requested the Finance Director provide highlights of the report to summarize the results for the public. J. Erickson: Stated the 3 Quarter Finance Report includes projections for year end. Building permits are rd projected at 155, which is 70 permits over budget with associated revenue of appro ximately $425,000. Other development - related revenue will generate about $93,000 more than anticipated . Noted that the 2012 budget did not include development - related revenues, but the 2013 budget does include some projections for that . Overall , the estimated revenues are projected to exceed budget by $509,000. E xpenditure savings inclu de personnel savings associated with turnover or delayed hiring of $152,000. Other various areas contribute to $ 348,000 for total savings in expenditures. Combined , the savings and revenues are projected to increase fund balance reserves by $ 857,000 for the end of 2012. Keeney : Commented it is not a bad situation to have underspent expenditures and have additional revenues. Erickson : Commented that staff did not look at money as though they had to spend it or lose it, but rather continued to look for sa vings. Myser : Noted that the Water Fund reflects a 25% increase in consumption and asked what that can be attributed to . J. Erickson: Responded that the dry summer resulted in increased consumption . MOTION BY KEENEY, SE COND BY HEDBERG TO A PPROVE ITEM 5C , CONSIDER APPROVAL OF THIRD QUARTER 2012 F INANCIAL REPORT . VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. PRESENTATION No presentation was scheduled. PUBLIC HEARING Public Hearing to Consider Approval of a Resolution Ordering the 2013 Improvement Project and Preparation of Plans and Specifications (Sunset Avenue) Project Engineer Thongvanh described the project area and existing conditions. Discussed proposed improvements including a 28 - foot wide roadway, water, sanit ary sewer, storm sewer and street lighting . Discussed estimated costs and funding sources . Reviewed the proposed assessments, noting that the unit method is recommended and the anticipated assessment is $18,000 per unit. Noted that nine future lots are proposed to be assessed at $34,000 per unit. Discussed the septic system credits as set out in the Orderly Annexation Agreement. Stated the Assessment Review Committee met in September to establish the unit assessment method for this project. Noted that consideration was given to combining this project with the CR 12 project for assessments, but it was determined that it would result in higher assessments. A timeline was p rovided for the project , including informational meetings, and construction is exp ected to begin in July due to coordination with the County and the CR 12 project. Discussed the volunteer urban reforestation and drive way reconstruction options that will be offered with this project . Comments: November 13 , 2012 City Coun cil Minutes 2 Erickson : Asked if the street will be r enamed since there is a Sunset roadway on each side of Spring Lake. Poppler : Stated the street on the east is Sunset Trail and the street on the west is Sunset Avenue and the names will remain . Hedberg : Asked what the anticipated assessment amount would be if we had not received the water grant. Thongvanh : Replied it would be approximately $3,100 per unit greater. MOTION BY HEDBERG, SECOND BY SOUKUP TO OPEN THE PUBLIC HEARING. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion car ried and the public hearing opened at 7:29 p.m. Comments: Chris Hendler , 17271 S unset A venue, asked about the process of selecting the contractor who will be doing the road construction ; expressed concern about accessibility during the project as he has a holding tank and will need a vehicle in to clean out holding tanks ; expressed concern about the assessment method used as some lots and some houses are larger and will receive more value. Believes the project should have been done in 2006 a s prices hav e increased since then. Dave Ment e r , 17351 S unset Avenue, supports the unit assessment method . Charles Ellio t t , 17091 Sunset Avenue, expressed concern about the assessment method due to different sized lots and home value . Commented that taxes are calcu lated by square footage and questioned whether assessments should also be calculated that way. Stated he has a petition signed by people who support his point of view and requested permission to present it to the Council. Stated he has questions about t he elevation of his home vs. the street level and wants to assure that drainage will not be a problem . Myser : Invited Elliot to submit the petition. MOTION BY HEDBERG, SECOND BY ERICKSON TO CLOSE THE PUBLIC HEARING. VOTE: Ayes by Myser, Erickson, Hedber g, Keeney and Soukup. The motion carried and the public hearing closed at 7:37 p.m. Comments: Poppler: Responded that the selection of contractor is done by bid stating that the City accepts the lowest responsible bidder. Noted that if the City has som e reason to not be comfortable with low bid, there is a process to determine if the contractor is a responsible bidder. Erickson : Commented that CR 12 was a County project , but the County is not involved in the Sunset Avenue p roject . Keeney : Asked what l evel of dissatisfaction would allow the City to disqualify a contractor . Rosow : Replied that recommendations of the consulting engineer, reference checks and quality of completed projects can be used. Stated it is preferable to have prequalification crit eria set up in the bid and a pointing system for objective standards. A n amount of points can be set which must be met in order to qualify to have a bid opened. Keeney : Asked how concern about a previous contractor could be considered. Rosow : Replie d that criteria could be constructed to our particular experience. A bidder cannot arbitrarily be excluded . Erickson : Noted that s upervision of the project during construction is also important. Poppler : Responded regarding accessibility to homes durin g the construction stating that the design process will address that. Suggested that perhaps owners of larger parcels can provide a temporary trail for egress. Stated the roadway would be put into drivable shape at the end of each day, but it might be im passable during the day . Regarding assessment method of front footage vs. unit, indicated that the November 13 , 2012 City Coun cil Minutes 3 method can still be reviewed as final cost is developed and an assessment hearing is held. Stated that yards and driveways are reviewed during the design p rocess to assure that drainage is appropriate for each property. Encouraged homeowners to come to meetings that will be held during the development of the project to bring forward such issues . Hedberg : Understands that a desi gn will be developed to assur e residents have access and there is appropriate drainage. Erickson : Commented on emergency access during construction . Keeney : Commented on the unit assessment vs. others stating that the Assessment Review Committee has had d iscussion about it . State d the p olicy for residential road construction has consistently used the unit method as the fairest way to assess as all properties have access to the water and sewer systems regardless of their size. Another consideration for this project is that funding sources require it to meet criteria that the improvements provided are at least as valuable as the amount of the assessment. Clean water funding and oversizing funding are being brought into this project for infrastructure that meets the broader communit y . Believes that these properties will have increased property value. Supports unit method for this assessment and noted that the final decision is made at a public hearing scheduled for April. Erickson : A sked if there will be storm catch basins on the roadway. Poppler : Affirmed. Erickson : That, along with curb and gutter, will funnel water away from properties. Asked if rain gardens could be included with this project. Poppler : Replied that this project and the CR 12 project will apply rain garde n fund s toward wetland enhancement. Erickson : Queried whether the water mains will be dead - ended into this area. Poppler : Displayed the roadway network maps and ordinary high water level maps and explained how a portion of the project will have a wate r main that does not loop. Stated there will be 15 - 20 users on that end of the water main and a smaller pipe will be used which will avoid any stagnant water issues. Erickson : Will fire hydrants be put in as part of the project. Poppler : Yes, approxim ately every 400 feet. Soukup : Asked about the amounts available for the septic system credits. Poppler : Replied that c redits range from $350 to $15,000 depending on age of the system, compliance, etc. Hedberg : Commented on the assessment method concurri ng that the unit method is typically used because the project provides access to water and s ewer . T he range of property value that could be justified in using the front foot age method would be if properties ranged from ten to twenty times difference in va luation. Reiterated the law requires that the assessment be no more than the increase in value to the property. This project needs to be done as some properties are not marketable at this time , and connecting the homes around the lake to public sewer and water is an important water quality step. Myser : A sked what kind of feedback was received at the informational meeting. Thongvanh : Replied that comments were generally in favor of the project and questions centered on the project, process and design p ertinent to particular properties. Poppler: The information al meeting was for both the Sunset and CR 12 projects. The CR 12 project had some negative comments due to the cost and how they are divided. MOTION BY HEDBERG, SECOND BY ERICKSON TO APPROVE R ESOLUTION 12 - 180 ORDERING 2013 IMPROVEMENTS AND PREPARATION OF PLANS AND SPECIFICATIONS FOR SUNSET AVENUE (PROJECT #13 - 011); FINANCING THE 2013 SUNSET AVENUE IMPROVEMENT PROJECT TO BE UNDERTAKEN BY THE CITY AND ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BO ND REGULATIONS UNDER THE INTERNAL REVENUE CODE. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. November 13 , 2012 City Coun cil Minutes 4 Public Hearing to Consider Approval of a Resolution Ordering the County Road 12 Improvement Project and Preparation of Plans a nd Specifications City Engineer / Inspections Director Poppler reviewed the project area. Noted this is a County project, but some costs will be charged back to the City. Described existing conditions and proposed improvements. Reviewed estimated costs and funding sources. Reviewed the properties to be assessed. Front footage method for the street assessment is proposed for properties on the south side of the roadway for an anticipated $22,800 per property. Stated that septic system credits as set ou t in the Orderly Annexation Agreement will apply for this project. Reviewed the timeline including information al meetings and proposed construction beginning in April. The urban reforestation and driveway reconstruction programs will be offered. Comment s: Hedberg : Asked why only two or three properties on the north side of the roadway will be assessed and not all of them . Poppler : Replied that the other properties have the homes set farther back from the roadway and they will be served by extending sew er and water through the Stemmer Ridge project. Hedberg : Reiterated that o ther streets will be put through to those properties and they will be connected at that time. Poppler : Commented that the City is not prepared to extend services to those propert ies until development occurs in adjacent areas. MOTION BY KEENEY, SECOND BY HEDBERG TO OPEN THE PUBLIC HEARING. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried and the public hearing opened at 8:22 p.m. Comments: Sandra B re eggemann , 1966 Shoreline B oulevard, stated she has lived on CR 12 for 25 years and has never favored annexation. Stated her property has more than 300 feet of frontage with an estimated assessment cost of $ 35,000 – $ 40,000. Stated she will be required to hook up to the water and sewer infrastructure within a year and does not have the money to do so. Queried why her property could not go with the Stemmer Ridge development. Stated that half of her front yard will be taken to accommodate the increased wi dth of CR 12; and that she should not have to pay for the larger pipes that will be used on CR 12. Stated she will receive no benefit from the sidewalk and bike trail that will also be taking part of her land. Asked how straight the roadway will be when built stating that the “kinks” built into adjacent CR 12 roadway around the lake are not desirable. Stated that s peed is an issue on CR 12. Stated that the 50 - foot lot she owns on the south side of Spring Lake will not be improved to the amount of the as sessment on it since it is a banked lot and is not buildable . MOTION BY HEDBERG, SECOND BY ERICKSON TO CLOSE THE PUBLIC HEARING. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried and the public hearing closed at 8:33 p .m. Poppler : Responded that she has a large parcel that could possibly be subdivided in the future. Her home is close to the C ounty road and adjacent to the project so it is desirable to serve her property with this project. She will have an opportunity t o develop her land. The s ewer will not run north to Stemmer Ridge and this property is downhill of the area where Stemmer Ridge ends. Noted she will not be charged for the larger diameter pipe as that cost is being paid for the by the T runk F und. The a s sessment is only for the typical 8” diameter pipe. The trail system is also not calculated with the assessm ents, but rather paid by November 13 , 2012 City Coun cil Minutes 5 State A id and tax levy. All properties along the corridor are using the front footage assessment and her 50’ parcel will b e receiving an estimated $1,000 assessment. Representative appraisals were done on various parcels. Myser : Asked what she would need to do if she believes the value of her property will not be improved to the amount of the assessment . Poppler : Replied t he assessment can be appealed and information about how to do that will be provided after assessment amounts are finalized. Hedberg : Commented on the enhanced wetland and how the area will also create a nice walking area. Asked about the difference in a ssessment if this project did not have the clean water grant. Poppler : Replied that assessments would be approximately $8,500 greater for each property. Hedberg : Stated that w e are obligated by law to demonstrate through an appraisal process the value created by the project and that it is more than the assessment. Noted that connection charges incurred beyond the assessment charges cannot be financed through property taxes; but u tilities can be financed for 20 years and streets for 10 years. Spoke of the policy for assessments. Soukup : Asked why we are working with the County on this project since it is their project. Poppler : Replied that City infrastructure is being placed in the County right of way. The City entered into a cooperative agreement with them , but t hey will coordinate the project. Soukup: Commented that the utilities infrastructure is being assessed at 100% and the street will be assessed at 40%. Asked if it could be done differently . Poppler : We are assessing 40% of the portion th at the County is charging us for the street and storm sewer. The majority of the street and structural cost is picked up by the County. Erickson : Asked if the Breeggemann lake access lot is buildable. Poppler : Replied that it is not and only the stre et construction costs are being assessed against it, not the sewer and water. Erickson : Queried ownership of a small parcel on the south side and questioned whether it would become a city - owned outlot. Commented on the program for people who qualify for deferred assessment. J. Erickson: Reviewed the criteria to qualify for the deferred assessment program. Keeney : Reiterated the policy to assess 100% of new sewer and water to properties that were not previously served. Stated that p roperties along the north side of the project are all large and will someday be developed. Noted that the p redominant expense comes from sewer and water and that will be assessed on the unit basis. Some of those costs such as the oversized pipes are charged to the Trunk Fun d . Thos e costs will be recouped when the properties are developed and the development fees will be paid back into the Trunk Fund. Commented that this cost is higher than we’ve seen on reconstruction projects because t his is new construction and it is ex tremely expensive. It is done to preserve water quality, for sanitation and to prepare the area for an urban style of life. Addressed the sidewalk comments by noting that even though it is not fun to lose part of one’s yard, the sidewalks are enjoyable w hen they are in. Support s moving forward with the project . Hedberg : Commented that Scott County GIS show s the two lots next to Br e eggema n n’s lakeshore lot are also unbuildable. Myser : Asked about the informational meeting feedback. Poppler : Replied comments were made about the cost of frontage foot assessment for the large parcels. Myser : Asked about the average cost of installing a private septic system. Poppler : The Orderly Annexation Agreement refers to a new septic system value of $15,000. Myse r: Commented that the wetland enhancement project should be a b eneficial aspect. MOTION BY SOUKUP, SECOND BY HEDBERG TO APPROVE RESOLUTION 12 - 181 ORDERING 201 3 IMPROVEMENTS AND PREPARATION O F PLANS AND SPECIFICATIONS FOR COUNTY ROAD 12 (PROJECT #12 - 00 2); FINANCING THE COUNTY ROAD 12 IMPROVEMENT PROJECT TO BE November 13 , 2012 City Coun cil Minutes 6 UNDERTAKEN BY THE CITY AND ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carri ed. Public Hearing to Consider Approval of a Resolution Approving an On - Sale Intoxicating, Sunday, and 2 AM Closing Liquor License for HBHB LLC dba The Pointe (formerly the Basement) City Manager Boyles st ated the liquor license application has been revie wed for background purposes and found to be satisfactory. This license would be effective December 1. MOTION BY KEENEY, SECOND BY SOUKUP TO OPEN THE PUBLIC HEARING. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried and th e public hearing opened at 9:06 p.m. Comments: No person stepped forward to speak. MOTION BY SOUKUP, SECOND BY HEDBERG TO CLOSE THE PUBLIC HEARING. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried and the public hearing clo sed at 9:07 p.m. Comments: Keeney : Commented that the City takes liquor licensing s eriously. This kind of business is strongly regulated and if not regulated leads to problems with the public and the business; but , if run properly is an asset to the com munity. Welcomed the operators of this new business. Erickson : Invited the petitioners to come forward and asked about plans for the business . Ryan Bartlett : Replied the Pointe w ill keep the same hours as the Basement had . Stated the p atio entrance o f the building will be the main entrance to the restaurant and somewhat separated from the stage area. The food will be upscale bar food and there will be live music entertainment at night. Erickson : A sked about restaurant hours. Bartlett : Replied the y will be open for lunch and dinner and the dining area will be opened at night to complement the bar areas. Soukup : Asked when they will be open for business. Bartlett : Probably by December 15. Plan to move the patio to the east side in the spring. Hedberg : Welcomed them to the business community. Asked where the kitchen will be. Bartlett : Replied the k itchen will remain in its current space; but there will be food runners and hostesses. Hedberg : Like s the idea of making the front area a restau rant. Asked about past business backgrounds of the owners . Bartlett : Replied that he s tarted in the restaurant business with serving and supervising. Moved to sales and sales management but stayed tied to restaurant industry. Kent has cooked for severa l supper clubs. Family has had its own business and Kent’s father will be providing business acumen. Hedberg : Reiterated the responsibility of running an establishment that serves liquor. Glad to see them come into town. Bartlett : Commented that staff will be trained before the establishment is opened. Myser : Asked how the exterior of the building will be changed. Bartlett : Replied that is currently the landlord’s responsibility. Myser : Noted that this location has an impact and people have been wo ndering what kind of business is going in there. Boyles : Stated he recently spoke with the landlord’s representative and discussed the exterior siding and replacement of a portion of the façade. The walls are to be of efis panels like South Lake Village n ext to it. November 13 , 2012 City Coun cil Minutes 7 The city has design standards which the owner is aware of. The patio will be relocated and at some point a patio liquor license will be requested. Bartlett : Affirmed that the front of the establishment will be nice, but won’t be finished until spring. MOTION BY HEDBERG, SECOND BY SOUKUP TO APPROVE RESOLUTION 12 - 182 APPROVING AN ON - SALE INTOXICATING LIQUOR LICENSE, SUNDAY ON - SALE LIQUORE LICENSE AND 2:00 A.M. CLOSING LIQUOR LICENSE FOR HBHB LLC dba THE POINTE. VOTE: Ayes by Myser, Erickson, He dberg, Keeney and Soukup. The motion carried. OLD BUSINESS Consider Approval of two Resolutions Related to the Welcome Industrial Improvement Project: 1. Accepting the Feasibility Study and Calling for a Public Hearing on the Improvement; and 2. Authorizing and Directing a City Representative to Make Offers or Use the Power of Eminent Domain to Acquire Certain Lands, Easements and Other Rights and Interests for the Purpose of the Construction Public Works / Natural Resources Director Gehler stated that the p rimary driver for the project is wellhead protection and reducing the vulnerability of the water supply. Stated this a rea was historically served with individual septic systems and wells as well as businesses with land contaminating potential. Soil poros ity in the area exacerbated the vulnerabilities. She also commented on the Markley Lake drainage area noting that increased development in the area will have increased runoff into the lake. Described the project components of water mains and storm water ponds. Spoke of property acquisition needs. Stated that i nitial discussions have been held with the property owner. Reviewed preliminary cost estimates and financing. Reviewed potential assessments noting that 100% of the cost would be assessed. Repre sentative appraisals have been obtained. Reviewed the project timeline with construction planned for spring of 2013. Comments: Keeney: Reiterated that this p roject brings sewer and water into the area , which is a commercial and industrial area with impl ications on the wellhead protection area and a regional storm water facility. Asked about the property that would have the storm water pond and if the entire area is needed or if the owner wants to sell the entire property. Gehler: Described the propert ies and explained that a narrow lot adjacent to it is long and narrow and difficult to use for other purposes. Keeney: As ked why we favor the quick take process for eminent domain and what implication that has on the project. Rosow : Replied that u nder th e standard process, we would not get possession until the case is done which could be two year s . If the City wants to get the project done, it would utilize quick take, g et the title and possession . The hearings are in process at the same time to determi ne amount of compensation for the property. Keeney : Asked if the cul - de - sac has to be on a specific property or if it could be on either. Gehler : Replied the cul - de - sac site was moved north so it would only affect two property owners. We will work with them as we go through the process. Keeney : Stated his preference is to find willing sellers. Asked if there are other locations that can be considered for storm water ponds. Gehler : Replied we are trying to find compensatory flood storage for the Markley Lake Flood Study. Half is in the Welcome Avenue project and the other half is in the low - lying areas . There is not much flexibility as the drainage pattern is flowing that direction. A nother option could be to allow property owners to accommodate po ndin g on their property. That would reduce the size of the pond. The streets must be addressed and the City would have to buy property elsewhere to accommodate that. November 13 , 2012 City Coun cil Minutes 8 Keeney: Seems this property is specifi cally required for this project and another site coul d not be substituted. Gehler: Agreed it would be very challenging to try to find other properties to accommodate all of the storm water. Keeney: Does not favor quick take. Hope ful that agreement can be reached with the property owner prior to that . Gehler : Stated she has had c ontact with all property owners and they h ave expressed willingness to negotiate with us. Boyles : Added that this process w as used with the Arcadia project and the City’s d esire is to reach reasonable accommodation. We have n ot had to use quick take. Keeney : Commented that h ere we are talking about undeveloped properties and not moving anyone out of their home, which is a big distinction. Erickson : Understand s the Markley Lake flood p roject is for the watershed of that la ke and the safety of the community as a whole. This is the wellhead protection area and we need to avoid contamination of the wells in that area. Soukup : Support s the project. Hedberg : Will support. This is the next step. Reiterated that the p rimary drivers are p rotecting the water source and mitigat ing the risk of flood ing in this landlocked lake. The project is cr itical for community - wide benefit and c ompleting the streets is a relatively small part of the expense. Myser : Asked why the assessment is being lowered. Gehler : Responded it is because the wellhead protection piece is involved and the Water Fund is recommended for payment of a greater part of the project. Keeney : Agreed the consensus of the Assessment Committee that a lot of the benef it goes to wellhead protection; part of funding is from regional storm water coming from another development. A decision was made to not to make a larger capacity pond for the entire annexation area, but there will be enough land to expand it in the futur e if we need to ; so building a smaller pond was part of the reduction of costs . Hedberg : Spoke of roughing in the utilities to extend the roadway to the east in the future and asked what the plan is for extending the road or utilities in that direction. Gehler : Described how the sewer could be sized and designed to accommodate 40 acres on Credit River Road. Myser : Questions the benefits for this cost. Knows the project needs to get done, but there are limited funds and other areas could benefit better from an economic development standpoint. Keeney : Commented there s hould not have been urban development without having water/sewer and streets put in and now it must be done. This type of development should not have been put on top of the wellhead prote ction area. We have to make this area be part of a c ity rather than a rural industrial area. MOTION BY HEDBERG, SECOND BY SOUKUP TO APPROVE RESOLUTION 12 - 183 ACCEPTING THE FEASIBILITY REPORT AND CALLING FOR A PUBLIC HEARING ON THE WELCOME INDUSTRIAL P ARK IMPROVEMENT PROJECT. VOTE: Ayes by Erickson, Hedberg, Keeney and Soukup. Nay by Myser. The motion carried. MOTION BY HEDBERG, SECOND BY E RICKSON TO APPROVE RESOLUTION 12 - 184 AUTHORIZING AND DIRECTING CITY REPRESENTATIVES TO MAKE OFFERS OR USE THE P OWER OF EMINENT DOMAIN TO ACQUIRE CERTAIN LANDS, EASEMENTS, AND OTHER RIGHTS AND INTERESTS FOR THE PURPOSE OF THE CONSTRUCTION FOR THE WELCOME INDUSTRIAL PARK IMPROVEMENT PROJECT. VOTE: Ayes by Erickson, Hedberg and Soukup. Nays by Myser and Keeney. The motion carried. November 13 , 2012 City Coun cil Minutes 9 Consider Approval of a Resolution Authorizing the Purchase of an Asphalt Reclaimer Natural Resources / Facilities / Fleet Manager Friedges spoke of streets and trails that the City maintains. Described the process staff used to repair roadways vs. recent processes using an asphalt reclaimer . Stated that the City has rented a reclaimer for the past several years. Comments: Soukup : Stated that Council has asked staff to look into cost saving areas. Due diligence has been done in th is case. Hedberg : Stated this equipment will be used . Asked if equipment sharing is planned with other entities . Friedges : Replied staff discussed a joint purchase of this piece of equipment with SMSC, County and Sa vage . None of them were interested at this time , but Savage just purchased a pull paver and we will have a barter arrangement with them. Also, the County has a large backhoe that we use through a barter arrangement. Keeney : Will support. Erickson : C ommented on sales tax. Myser : Will sup port. MOTION BY KEENEY, SECOND BY SOUKUP TO APPROVE RESOLUTION 12 - 185 APPROVING THE PURCHASE OF AN ASPHALT RECLAIMER. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Consider Approval of a Resolution Accepting Bids, Awar ding Contract and Authorizing the Execution of the City’s Standardized Construction Contract for the Replacement and Upgrades of HVAC Equipment at the Library/Club Prior Natural Resources / Facilities / Fleet Manager Friedges described the current conditio n of the HVAC equipment in the Library . Stated that bids were solicited to replace the system and the low bid was received from Yale Mechanical. Comments: Erickson : Asked about repairs done in the past. Friedges : Replied some pipes were replaced thre e to four years ago. Some of them have failed putting additional stress on condensing units. Erickson : This is a necessity. Will support. Keeney : Commented that the s ystems that were installed are not common models and it is difficult to get parts. Friedges : Responded that the plans and specifications prepared for this bid called out certain suppliers. Keeney : Concluded the new system will be mainstream and more compatible for parts and supplies. Asked about the anticipated lifespan of this HVAC. Friedges : Replied that many of the components should last 20 years. Hedberg : This is consistent with what was presented with the facility management plan. Will support. Soukup : Asked if this replacement could have been delayed with better maintenance . Friedges : Replied that quarterly maintenance has been performed in this building for many years. Some of the systems have failed and there are not replacement parts for them. Myser : Will support. Asked how the situation of the failed system arose. Boyles : Responded that lowest b id sometimes leads to minim um quality or one of a kind supplies and parts for major building systems bid . We have since learned that some of the bid processes can specify particular goods and services to avoid low end produ cts and that a construction manager can be instrumental in assuring that this sort of thing does not happen. In retrospect wishes that construction managers would have been used on all of the early buildings. November 13 , 2012 City Coun cil Minutes 10 MOTION BY HEDBERG , SECOND BY SOUKUP TO APPRO VE RESOLUTION 12 - 186 ACCEPTING BIDS, AWARDING A CONTRACT AND AUTHORIZING THE EXECUTION OF THE CITY’S STANDARDIZED CONSTRUCTION CONTRACT FOR HVAC REPLACEMENT AND UPGRADES AT THE LIBRARY / RESOURCE CENTER. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. NEW BUSINESS Consider Approval of a Resolution Canvassing the Returns of the City of Prior Lake 2012 Municipal Election City Manager Boyles explained that the window of time allowed for canvassing returns included this meeting so it was added t o this agenda rather than calling a special meeting . Comments: Hedberg : Asked if information about total votes cas t , under voting, etc. will be provided. J. Erickson: Replied t hat information will be shared with the Council. There i s also a canvass form to be signed which is not available at this time. Hedberg : Commented t his is first time the City ran its election with a presidential election. The phenomenon of the high turnout will have an impact for future elections and the info rmation will be helpful. J. Erickson : Commented that in early spring the number of voters will be considered and new precincts may be established. MOTION BY SOUKUP, SECOND BY HEDBERG TO APPROVE RESOLUTION 12 - 187 CANVASSING THE RETURNS OF THE CITY OF PRI OR LAKE 2012 MUNICIPAL ELECTION. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Consider Approval of a Resolution Revising the Public Works Maintenance Policy Public Works / Natural Resources Director Gehler recalled that last year there was a request to review trails and their utilization. Staff also reviewed use of pleasure rinks. Noted that Northwood Meadows Park has been added to the plowing schedule to provide access to th at pleasure rink; and access to Spring Lake Regional Park has been added. The Pavement Degradation Study was completed this past year and that has also been incorporated into policy. Staff is working on standardizing policy documents so all public works policies were reviewed with the goal of inco rporating them into one document. Public Works Supervisor Theisen reviewed the areas recommended for removal from the plowing plan and requested that the Lakefront Park plowing priority be downgraded. He recommends elimination of three pleasure rinks (Ind ian Ridge Park, Northwood Park, Sunset Trail Park) due to low usage. Gehler commented on changes i n pavement management which reflect the new method for grading pavement condition. Comments: Hedberg : Suggested adopting the policy and scheduling a work session early in the year to review the policy in depth to understand better how the policy works including its scope and breadth . Soukup : Commented that school access and bus stops are a main concern. Collector street bus stops are on the opposite side of the sidewalks. Asked if there was discussion or a p olicy in place that addresses kids that have to cross the street. Gehler : Replied the f ocus is on keeping the travel routes open. That would be a different level of service and different kind of ti me commitment. Soukup : Concur red with Hedberg comment of bringing to work session. Asked what the impact is of changing L akefront Park to a low plowing priority. November 13 , 2012 City Coun cil Minutes 11 Gehler : Replied it would be plowed for festivals. Noted that since the Park is recreatio nal and some of the routes around school were made higher priority . T he plan tries t o balance that. Erickson : Asked for clarification of the priority rating. Asked w hy roadways with lots of school stops are a low priority. Gehler : Replied that there ar e a lot of stops throughout town; some areas with crosswalks continue to be a high priority. Erickson : Commented that the recently annexed area shows no plowing. Gehler : Responded that there are a number of areas where sidewalks are installed with low development. As they develop, they will be added to the plowing schedule. Erickson : Asked how usage is monitored at the pleasure rinks to determine whether they should be eliminated. Theisen : Replied they observe the number of people using it. O ther parks are bigger and more widely used. Erickson : Supports having a work session. Supports reducing plowing in Lakefront Park. Supports trading priority on some medium routes for bus stops, etc. Myser : Support s the recommendations for re - prioritizing as proposed. Soukup : Would like to see policy and procedures in two separate documents. Erickson : Asked if the new trails in Spring Lake Regional Park will be plowed. Gehler : Replied that the Three Rivers Park District will maintain the trails. MOTIO N BY SOUKUP, SECOND BY KEENEY TO APPROVE RESOLUTION 12 - 188 UPDATING THE CITY OF PRIOR LAKE PUBLIC WORKS OPERATIONS MANUAL. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. MOTION BY HEDBERG, SECOND BY SOUKUP TO DIREC T STAFF TO SCHEDULE A PORTION OF A CITY COUNCIL WORK SESSION TO DEVOTE TO AN IN - DEPTH DISCUSSION OF THE PUBLIC WORKS POLICIES. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Consider Approval of a Resolution Approving the City of Prior Lake Technology Village Bylaws and a Lease Agreement between the City of Prior Lake and the City of Prior Lake EDA Community and Economic Development Director Rogness described the Technology Village initiative. Bylaws have been developed for the Technology Village. A lease agreement is proposed between the City and the EDA. A Technology Village Board of Directors is being created and members have been solicited. Two business es have applied to move into the Technology Village. Comments: Hedb erg : Clarified that the lease will be between the EDA and the City. It will be the EDA ’ s responsibility to administer leases with each of the businesses. Businesses can be eligible to be housed in the incubator for three years with a graduated tier leas e payment. Soukup : Commented that it is e xciting that there are businesses interested. Asked how the lease agreements circle back to the C ity. Rogness : The agreement will allow the EDA to enter into leases for portions of the space for business tenant s. Council will have continued authority over future appointments of Board members and EDA members. Hedberg : Added that the EDA budget includes the rev enues from the tenant companies and t he Council approves the EDA budget. Soukup : Stated she wants to assure that protections are in place for the property and the information of the City. November 13 , 2012 City Coun cil Minutes 12 Erickson : Asked the length of term for the business lease agreement. Rogness : T hree years. Keeney : Excited to see this move forward. Will support. Myser : Stated this has been a top priority and it could be one of the most cost effective ways to bring businesses into the community. MOTION BY SOUKUP, SECOND BY ERICKSON TO APPROVE RESOLUTION 12 - 189 APPROVING THE CITY OF PRIOR LAKE TECHNOLOGY VILLAGE BYLAWS AND A L EASE AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND THE CITY OF PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Consider Approval of T wo Resolutions Authorizing the Mayor and City M anager to Enter Into Contracts with Schmitty and Sons Transportation, Inc. for the Operation of Laker Lines Bus Service for: 1. the Period June 15, 2007 to November 14, 2012 2. the Period November 15, 2012 to November 14, 2017 Assistant City Manager Kansier sta ted that an amendment is needed for the current contract to verify that the contractor has followed the Federal clauses; specifically a clause inadvertently excluded in the 2007 contract. Schmitty has already agreed to the amendment. Since it has been fi ve years since a contract was last entered into for bus services, Request for Proposals were issued for operation of the bus servic e . The only bid received was from Schmitty and Sons. It met all conditions of the RFP and pricing was competitive. Reviewe d the rate structure. The required Federal language has been included and reviewed both by the C ity A ttorney who also represents Southwest Transit , another Opt Out who must conform with F ederal requirements ; and by a Maryland - based firm recommended by the Metropolitan Council to assure that F ederal compliance is achieved. The cost was about $3 , 300 . Comments: Erickson : Will support. Asked who owns the buses. Kansier : Replied they are owned by the Metropolitan Council and the City leases them at no c ost. Erickson : This contract is just for the operation of the buses, not the use of them. Kansier : Affirmed. Keeney : Asked if it w ould be a reasonable possibility to operate the buses ourselves. Kansier : Replied we would have to hire drivers, have a bus garage, etc. Believes it would be considerabl y more e x pensive for the initial capital outlay. Keeney : Pricing sounds similar. Asked about the escalating surcharge. Kansier : Explained there will be about a one percent increase over three years. Hed berg : Asked about ridership statistics on the BlueXpress. Kansier : Replied that the service has increase d from 16 runs a day five years ago to 30 runs a day; and from 52,000 riders to 170,000 riders. Hedberg : Stated this is a s uccessful operation that serves more than just Prior Lake riders. Will support. Soukup : Clarified that the reason for the amendment is the reverse commute. Kansier : Affirmed that the bus we purchased with the JARC grant requires a Federal clause that was not in our current con tract. Soukup : Asked if there will be compliance issues. Kansier : Responded that the Met ropolitan Council has told us we need to return grant funds. The City does not agree with that assessment and this amendment is one step towards working through that . Myser : Great to see the growth in this service. November 13 , 2012 City Coun cil Minutes 13 MOTION BY HEDBERG, SECOND BY ERICKSON TO APPROVE RESOLUTION 12 - 190 AUTHORIZING THE MAYOR AND CITY MANAGER TO RETROACTIVELY EXECUTE THE 2007 - 2012 CONTRACT WITH SCHMITTY AND SONS TRANSPORTATION, INC. WHIC H INCLUDES ALL FEDERAL REQUIREMENTS AND CERTIFY COMPLIANCE THEREWITH FOR THE DURATION THEREOF. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. MOTION BY HEDBERG, SECOND BY SOUKUP TO APPROVE RESOLUTION 12 - 191 AUTHORIZING TH E MAYOR AND CITY MANAGER TO ENTER INTO A CONTRACT WITH SCHMITTY AND SONS TRANSPORTATION, INC., FOR THE OPERATIONS OF LAKER LINES BUS SERVICE FROM NOVEMBER 2012 TO NOVEMBER 201 7 . VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carrie d. OTHER BUSINESS Hedberg: Speaking as President of the EDA, declared that there will be a vacancy on the EDA effective December 31, 2012. Keeney: Commented there has been discussion about the impending vacancy on the City Council and how to move forwa rd with filling that vacancy. Requested staff to prepare an agenda item for the next meeting. Understands that State Statute would allow the City to pass an ordinance determining if we would or would not have a special election and under what circumstan ces that would happen; with an alternative of filling the vacancy by appointment. Believes it is important to consider how the vacancy should be filled. MOTION BY KEENEY, SECOND BY SOUKUP TO DIRECT STAFF PREPARE AN AGENDA REPORT FOR THE NEXT COUNCIL MEET ING WHICH WOULD INCLUDE AN EXPLANATION OF THE STATUTE, THE COST AND REQUIREMENTS OF A SPECIAL ELECTION, TIMING CONSTRAINTS AND OTHER OPTIONS. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Community Events Erickson: Sta ted that Holiday Dazzle will be November 30 at downtown and Lakefront Park. Myser: Wished all a Happy Thanksgiving . A DJOURNMENT With no further business brought before the Council, a motion was made by S oukup and seconded by K eeney . The motion carried a nd the meeting adjourned at 11:07 p.m. __________________________________________ ________________________________________ Frank Boyles, City Manager Charlotte Green, Administrative Assistant November 13 , 2012 City Coun cil Minutes 14