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HomeMy WebLinkAbout12 10 12 City Council Minutes 4646 Dakota Street SE Prior Lake, MN 55372 REGULAR CITY COUNCIL MEETING MINUTES December 10 , 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, Accountant Bishop, City Engineer / Inspections Director Poppler, Police Chief O’Rourke, Fire Chief Hartman, Public Works/Na tural Resources Director Gehler , Communication and Economic Development Director Rogness, Planner Matzke, Community Developme nt Specialist McCabe, 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 Fo rum 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 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 Cou n cil, 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. APPROVA L OF AGENDA City Manager Boyles requested that the title of item 10C be changed to : Consider Approval of a Resolution Authorizing the Mayor and City Manager to Enter into a Cooperative Agreement with Scott County on Behalf of the City of Prior Lake for the Purpose of Making High Speed Data Services Available to Four City Buildings and Four Business Parks in Prior Lake. Mayor Myser stated that PRESENTATIONS will be moved forward on the agenda to the next item of business. MOTION BY HEDBERG , SECOND BY KEEN EY TO APPROVE THE AGENDA AS MODIFIED . VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. PRESENTATION S Recognition of Mayor Mike Myser and Councilmember Warren Erickson City Manager Boyles spoke about government working thro ugh elections and orderly transitions which is a revered part of the American system. Stated that tonight the City wants to honor two individuals : outgoing Mayor Mike Myser and outgoing Councilmember Warren Erickson. Phone 952.447. 9800 / Fax 952.44 7 . 4245 / www.cityofpriorlake.com Mayor Myser spoke of Councilmember E rickson’s seven years of service on the Council commenting on the highlights of the Council and Erickson’s achievements during that time . A plaque was presented to Councilmember Erickson expressing appreciation for his contributions. Councilmember Hedbe rg commented on Mayor Myser’s three years of service as Mayor emphasizing the projects Myser championed and progress made in those areas. A plaque was presented to Mayor Myser. Mayor Myser spoke of his desire to become involved in the community that led to him running for office , the things he wanted to accomplish and the things he learned while serving as Mayor. Thanked staff, C ouncil and residents for their work and support . APPROVAL OF MEETING MINUTES MOTION BY ERICKSON, SECOND BY SOUKUP TO APPROVE THE MINUTES OF THE NOVEMBER 26 , 2012 CITY C OU NCIL MEETING. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. MOTION BY KEENEY, SECOND BY HEDBERG TO APPROVE THE MINUTES OF THE DECEMBER 3, 2012 SPECIAL CITY COUNCIL MEETING. VO TE: 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 Listing B. Consider Approval of Treasurers Report C. Consider Approval of Building Permit Summary Report D. Consider Approval of Animal Control Services Report E. Consider Approval of Fire Department Report F. Consider Approval of Resolution 12 - 198 Electing the Non - Waiver of Statutory Municipal Tort Liability Limi ts and Declining Excess Liability Insurance Coverage G. Consider Approval of Resolution 12 - 199 Entering into a Joint Powers Agreement with the State of Minnesota Department of Commerce for the Guaranteed Energy Savings Program H. Consider Approval of Res olution 12 - 200 Approving a Real Estate Purchase Agreement with Marc C. Peterson and Rosanne W. Peterson for Park Property at the Intersection of Sunset Avenue and County Road 12 I. Consider Approval of Resolution 12 - 201 Authorizing the Mayor and City Man ager to Enter into a Lease Agreement with Prior Lake Athletics for Youth (PLAY) J. Consider Approval of 2013 Cigarette License Renewals K. Consider Approval of 2013 Massage Therapy License Renewals L. Consider Approval of Resolution 12 - 202 Ratifying the Labor Agreement between the City of Prior Lake and Law Enforcement Labor Services (Patrol Officers) for 2012 - 2014. M. Consider Approval of Resolution 12 - 203 Ratifying the Labor Agreement between the City of Prior Lake and Teamsters Local 320 representing Police Sergeants for 2012 - 2014. N. Consider Approval of a Report Establishing a Timeline and Process for the Acquisition of a Financial System Councilmember Soukup requested that item 5N , Consider Approval of a Report Establishing a Timeline and Proces s for the Acquisition of a Financial System , be removed from the Consent Agenda for discussion. December 10 , 2012 City Council Minutes 2 Councilmember Hedberg requested that item 5C, Consider Approval of Building Permit Summary Report , be removed from the Consent Agenda for discussion. MOTION BY SOUKUP , SECOND BY HEDBERG TO APPROVE THE CONSENT AGENDA AS MODIFIED. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Soukup: Que stioned whether the timeline for financial system acquisition might be too aggressive. J. Erickson: Explained the items on the timeline . Soukup : Questioned the software consultant RFPs . J. Erickson: Explained that item is for a consultant who would guide the process rather than the vendors that provide software. Soukup : Stated she w ould lik e to see regular status reports on the progress of this project . J. Erickson: Affirmed this project will entail a lot of work, but feels it is past due and needs to get done. Anticipate s going live in July of 2014. Myser : Stated that the Council shoul d be given an opportunity to provide input on the scope of what is being bid. Hedberg : Asked about the number of building permits to date. Poppler : Replied we are now at 160 permits with six ready for pick - up and another fourteen in review . Hedberg : Anticipates a total of 170 permits for the year. MOTION BY SOUKUP, SE COND BY HEDBERG TO A PPROVE ITEM 5C, CONSIDER APPROVAL OF BUILDING PERMIT SUMM ARY REPORT, AND ITEM 5N, CONSIDER APPROVAL OF A REPORT ESTABLISHING A TIMEL INE AND PROCESS FOR THE ACQUISI TION OF A FINANCIAL SYSTEM. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. PUBLIC HEARING Public Hearing and Consideration of Approval of a Resolution Ordering the Welcome Avenue Improvement Project and Preparation of Pla ns and Specifications Public Works / Natural Resources Director Gehler stated that two public input meetings were held for this project and the Implications Wheel process was used . She r eviewed the timeline for the project, the project components, prelimi nary cost estimates and financing. The assessment process was explained and representative appraisals have been obtained. Comments : Keeney : Understands the proposal is to include sewer and water and asked if there is an option for a road on the nort h end of the project area. Gehler : Responded that would be bid as an option. Keeney : Asked if the area w ould be useful as a dirt road. Gehler: Replied that if no road is built, there would be a deterrent placed there so people would not try to use it. MOTION BY SOUKUP, 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 7:51 p.m. December 10 , 2012 City Council Minutes 3 Comments: Chad LeMair, 16861 Welcome Ave, stated that he and his p artners are owners of CJ Holdings which houses five businesses and approximately 60 employees. Stated he s upport s the project and wants the improvements because the road way needs attention, sewer and water is needed as this property is in the wellhead pro tection area, it will enable additional lots in the industrial park to develop which will increase tax base and there will be an improved appearance for his customer base. Further stated that when he located his business in this industrial park he paid fe es upfront for water and sewer to be brought to the property with the understanding that those monies would be returned to him when other properties hooked up to the water and sewer infrastructure, which was anticipated to be approximately two years . Stat ed he believes the City should now reimburse him for those fees and wants the project completed in order to receive such reimbursement. MOTION BY HEDBERG, SECOND BY ERICKSON TO CLOSE THE PUBLIC HEARING. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney an d Soukup. The motion carried and the public hearing closed at 8:00 p.m. Comments: Erickson : Concurred with LeMair’s comments about the attributes of the project. Will support. Keeney : Believes the City should support its obligation and that staff will look at LeMair’s agreement regarding the water and sewer. Believes a complicating factor occurs w ith the timing of when other properties connect and when the City gets paid. Some of the properties are undeveloped. City intends to keep its promises, but perhaps the contract did not anticipate how this would be accomplished. Hedberg : Emphasized that a primary reason for doing the project is to protect the water supply. The industrial park is over the underground water supply used for our wells. Additio nally there is flood risk for Markley Lake. Both of those issues are city - wide risks. Completion of roads has been added to the project which will make the properties more developable. Support s the project. Noted that the Special Assessment Committee discussed having the City reimburse the remainder of what was paid by LeMair. Soukup : This is a great area for us to bring in infrastructure. Thanked LeMair for his development in the area. Myser: Stated he originally voted against this project believin g there is a more cost effective way to protect the wellhead area. Seems this is more about putting a road in place for business es which is economic development. Supports LeMair’s comments about being reimbursed for his investment in the water and sewer. MOTION BY HEDBERG, SECOND BY SOUKUP TO APPROVE RESOLUTION 12 - 204 ORDERING IMPROVEMENT PROJECT #12 - 002, THE WELCOME INDUSTRIAL PARK IMPROVEMENTS, AND PREPARATION OF PLANS AND SPECIFICATIONS; FINANCING OF THE WELCOME INDUSTRIAL PARK IMPROVEMENTS TO BE UNDE RTAKEN BY THE CITY AND ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE. VOTE: Ayes by Erickson, Hedberg, Keeney and Soukup. Nay by Myser. The motion carried. OLD BUSINESS Consider Approval of Resolutions Auth orizing the Transfer of Funds, Calling for the Redemption of the Outstanding General Obligation Improvement Bonds, Series 2005C and Adopting 2013 Prior Lake Budgets and Certifying Final 2013 City of Prior Lake Property Tax Levies to Scott County Department of Taxation December 10 , 2012 City Council Minutes 4 Finance Director Erickson referred to the work session that discussed this multi - part agenda item. Described the various scenarios under consideration that depict property tax levy and use of fund balance reserves. Comments: Soukup : Commen ted on the surplus stating it was due to savings on expenditures and additional revenues. Believes there should be a 0% increase in tax levy this year. J. Erickson: Stated that the second half tax settlement was received in the past week, which came in at a 99% collection rate . Additions to revenue include additional building permits , the 2004 - 2006 Mediacom audit , and a workers compensation dividend. The high tax collection rate as well as the unexpected revenue resulted in $260,000 more than projecti ons . Hedberg : Stated that due to the additional revenue, he will support a 0 % tax levy increase . Noted that the levy per household will be $45 less than five years ago. Believes the r eserve level has sufficient flexibility to absorb the use of the $ 400, 000 proposed in scenario “A.” Keeney: W ill support a 0% tax levy. Commented that on a sustainable basis as the C ity grows, it cannot sustain a 0% tax levy increase forever. Believes it is i mportant to look at the spending side and scaling things back wh en we can ; and sometimes it is sensible to just level off and let growth be scale d back. Concurred that a 0% tax levy increase represents a lower per household cost. Asked where this budget places us in a spending situation as we c annot reduce reserves i ndefinitely. J. Erickson: Stated we budge ted for enterprise funds, debt service funds, facilities management and the EDA ; but m any funds do not have budgets and instead recognize operating expenditures. Stated that expenditures have increased by 1.94% over five years, not including inflation. Keeney : Asked whether that includes spending for capital improvement projects or such things as the Pike Lake Park purchase. J. Erickson: Replied it does not. Keeney : Stated he remains concerned about spending increases and spending levels, but this budget is a move in the right direction. Stated he is not concerned about the fund balance. Erickson : Thanked staff for its contribution by managing expenditures and seeking additional revenues such as grants, e tc. Will support the 0% tax levy increase and noted that City taxes will go down on the average home this year. Hedberg : Commented that both of the scenarios presented include paying off debt early. Myser : Encouraged comparison with other cities to s ee how they calculate the number of permits they budget for. Commented t hat diversifying the tax base would allow lower tax levies against residents. Will support the 0% tax levy increase . Keeney: Commented that a number of people spoke at the Truth - in - Taxation hearing who were alarmed by the amount of their increases. A cknowledge d that it takes a lot to get people to come and speak in public and those people were not dismissed as a vocal minority. Commented that he has not heard anything on the othe r side of the equation that more of something is needed. Believes that we need to continue to look at leveling off expenses. MOTION BY HEDBERG, SECOND BY SOUKUP TO APPROVE RESOLUTION 12 - 205 AUTHORIZING THE TRANSFER OF FUNDS FROM THE GENERAL FUND TO THE FACILITIES MANAGEMENT FUND. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. MOTION BY HEDBERG, SECOND BY SOUKUP TO APPROVE RESOLUTION 12 - 206 CALLING FOR THE REDEMPTION OF THE OUTSTANDING GENERAL OBLIGATION IMPROVEMENT BON DS, SERIES 2005C, AND AUTHORIZING A TRANSFER OF FUNDS FROM THE GENERAL FUND TO THE DEBT SERVICE FUND. December 10 , 2012 City Council Minutes 5 VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. MOTION BY HEDBERG, SECOND BY ERICKSON TO APPROVE RESOLUTION 12 - 207 ADOPT ING 2013 PRIOR LAKE BUDGETS AND CERTIFYING FINAL 2013 CITY OF PRIOR LAKE PROPERTY TAX LEVY TO SCOTT COUNTY DEPARTMENT OF TAXATION. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. MOTION BY HEDBERG, SECOND BY SOUKUP TO APP ROVE RESOLUTION 12 - 208 ADOPTING THE 2013 ECONOMIC DEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE 2013 ECONOMIC DEVELOPMENT AUTHORITY PROPERTY TAX LEVY TO SCOTT COUNTY DEPARTMENT OF TAXATION. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Consider Approval of a Resolution Accepting the Downtown South Traffic Study and Approving a Roadway Alignment for Incorporation into the Capital Improvement Program City Engineer / Inspections Director Poppler provided a brief background of the project and stated that the current step in the process is to discuss a local roadway network for moving traffic on the south side of downtown. Noted that south downtown is zoned transitional and is guided for changing to a downtown center and the City wants to be mindful of how the changes should be done and assure that traffic circulation will work long term and that access points are connected. Stated that the option being brought forward for recommendation (9C) has had input from all intereste d parties. Brian Nemeth of Bolton & Menk provided a report on the study undertaken about roadway alignments reviewing the components of the study and the details of the recommended alignment as well as the comments from participating groups. Poppler disc ussed how the plan could be implemented, possible funding and timetable. Comments: Myser : Asked about the impacts of accessing downtown if Hwy 13 reverts to the County. Nemeth : Replied that the County indicates they would probably keep half - mile acces s spacing. Hedberg : Commented this has been studied for seven years already and may be the most important decision made for the next 50 years for Prior Lake. It was stimulated by CR 21 being developed and the increased traffic resulting from that. Spok e of incremental implementation and what he thinks should take place in the next few years as a single project that he identified as option #1: t he development from Pleasant Street to the north should include closing Main to through traffic, installing a l ight at Arcadia, extending Arcadia to Pleasant, completing the ¾ intersection at Hwy 13 and Pleasant and possibly initiating one - way traffic on Colorado and parts of Pleasant. When considering the area from Pleasant Street to the south, believes that fixi ng the disconnect of the mall to downtown will have long - term benefits for the community; volume and speed of traffic and pedestrian interactions on Duluth are problematic and will become unmanageable when a median is installed on CR 21 disallowing left tu rns there; and it would open up additional land for development though costs of that need to be borne by developers. Stated he generally supports the first part of option 9C as he outlined in his option #1, but does not support the remainder of the recomm endation at this time because of “leakage” (how much residents spend outside of the community ) ; there has not been enough public interaction and commentary; the impacts of crossing the wetland area (environmental review, replacement, etc.) are unknown; acc ess to the Anna Trail neighborhood is not resolved; and the Hwy 13 / Duluth access to South Lake Village does not work. Soukup : Questioned the number of properties affected if Arcadia is extended to Pleasant. Nemeth : Replied it would affect five proper ties in the Colorado/Pleasant area and another property near Anna / Duluth. December 10 , 2012 City Council Minutes 6 Soukup : Asked if we received feedback from the property owners around Pleasant / Colorado . Believes one - way traffic for Pleasant / Colorado should be considered to eliminate tra ffic issues and provide more parking area. Stated she is not clear why we need a ¾ intersection at Hwy 13 and Pleasant as it would not add value. Asked about the wetlands proposal and whether a bridge is being considered and what the safety aspects would be connected to that. Stated she does not understand how the Franklin / Anna intersection would work and her questions include the space between intersections. Noted that the Hwy 13 / Duluth intersection is already very congested and it does not seem th at more could be put there. Concurred with Hedberg that the closing of Main and installation of lights at Arcadia should be done at the same time. Would like to move forward with Pleasant and Colorado one - ways and striping for parking; would like to move forward with lights on Arcadia and closure of Main. Generally finds the 9C proposal to be interesting , but more information and finalizing details needs to be done. Erickson : Concurred that Hwy 13 / Duluth is not convenient. Asked when Main might be closed to cross traffic. Poppler : Replied that the i mplementat ion chart with this recommendation places it in the Capital Improvement Program (CIP) for 2016 . Stated that the County and MnDOT are significant players and they are tr ying to line up funding for 2019 . Erickson : Commented that Main c ould be closed off without doing the project as traffic is already backing up at Main quite drastically. Agree d with Hedberg’s comment that Duluth / Arcadia stoplight / Main should be coordinated to be done at on e time. Asked if the alignment of Duluth and Franklin could be done even if the plan for the Pleasant intersection is not done. Nemeth : Replied that decision would be more of a function of MnDOT . Erickson : Queried the status of the wetland area. Pop pler : Replied that the wetland area is narrower than previously believed, which made this option more feasible. Stated that bridging would be needed, which could probably be accomplished with culverts. Any impact to the wetland would need to be mitigat ed by purchasing credits, rebuilding wetland, etc. Criteria must be followed that is set out in the Wetland Conservation Act. Erickson : Stated he g enerally supports the concept but some details need to be worked out. Believes the first focus is to get w orkable access into South Lake Village. Keeney : Noted that when comparing the recommended 9C to the baseline plan, the baseline assumes the Hwy 13 / CR intersection is built. Asked when that is planned. Poppler : Replied that the CIP contemplates th at project in 2016. Keeney : Commented that Hwy 13 / Duluth seems like separate project and could be independent of the road ways connecting. Asked how the recommended 9C would alleviate pedestrian issues at St. Michael’s Nemeth : By removing traffic fro m Duluth. Keeney : Asked if the baseline recommendation doesn’t reduce the traffic also . Nemeth : Replied that the t raffic would still come as far as Colorado. Keeney : Commented that most of the students attending St. Michael’s arrive by vehicle rather than by walking. Nemeth : Concurred most are dropped off and stated that traffic counts were performed. Keeney : Commented that some of the issues on Duluth could be solved by eliminating on - street parking. Asked about the plan for one - way traffic o n Co lorado by Premier Dance. Nemeth : Replied that o ne - way west bound traffic on Colorado could alleviate the traffic / pedestrian situation at that site . Keeney : Suggested that alternative entrances to the parking lot next to the dance studio should be c onsidered so the p arking lot entrance and drop off are a are separated from each other. N emeth : St ated that the st udy considered the roadway network and r oadway options to affect the dance studio traffic are minimal. Keeney : Commented that the proposed op tion does not appear to improve t raffic at Colorado and Arcadia. December 10 , 2012 City Council Minutes 7 Nemeth : Concurred that it will be hard to access Colorado to Arcadia. Keeney : Stated he is not supportive of 9C for many of the reasons already stated. It is not solving a lot of our exi sting problems and adds new ones at Anna Trail. It’s expensive and disruptive. Believes the biggest return on investment is Hwy 13 / CR 21. Noted that d owntown businesses say they need a left - in turn on Pleasant. Favors continuing the baseline option a nd encourag ing CR 21 improvements. Perceives Hwy 13 / Duluth as needing separate improvements. Stated he is t orn on the Colorado to Pleasant connection seeing the improvement from a traffic point of view, but it reduces the critical mass of the downtown neighborhood. Commented that one of the goals in the 2030 Vision and Strategic Plan is walkable traffic to retail and if no one is living there, we will not have that. Do es not favor taking the homes and acquisition would have to be long - term on a volunt ary acquisition plan. Does not favor pushing the proposed o ption # 1 ahead on an accelerated scheduled. Believes waiting until 2019 gives us more time to think about it. Myser: Stated that the i ntersections and neighborhoods impacted are significant. Believes the public input process has worked better than in the past, but m ore ideas are coming in and we d o not want to move with haste. Stated his preference to focus on Hwy 13 / CR 21 as CR 21 through downtown is currently not functioning to move traf fic for residents and businesses. Believes the light should be installed at Arcadia, Main should be blocked off and the ¾ intersection should be placed at Pleasant. Agrees that Hwy 13 / Duluth is unsafe. Stated he is i ntrigued by 9C option that go es thr ough the wetlands and supports looking at what should be done to put that forward although it s hould be developer driven. Agreed that the Anna Trail intersection is not acceptable and a solution has to be found for that. Believes that fixing the access to the downtown area would bring residents in and help with leakage . Erickson : Asked why the proposal is to close off Anna Trail. Nemeth : Replied that MnDOT prefers 90 degree access and to line up intersections for safety aspects. Stated there would be o pportunities for a new roadway on Anna Trail, but Franklin Trail would not lend itself to that. Hedberg : Believes staff should be directed to bring a report back answering the questions that have been posed rather than taking action on the proposal at th is meeting. Suggested that Anna Trail be vacated and businesses given direct access to the new road. Keeney : Commented that downtown does not have an access problem, but rather a through traffic problem. Believes there may be other places for success f ul development opportunities than the Anna Trail access. Reiterated that Hwy 13 / Duluth, Hwy 13/ Cr 21 and the baseline proposal seem to be priorities. Believes the question is whether Arcadia should be extended to Pleasant in any short - term timeframe. Questioned the advantage of giving guidance now rather than giving approval with 2019 projects. Hedberg : Responded that t here is consensus that if a roadway is done across the wetland, it needs to be developer driven. The advantage of giving direction now is that it would give a clear signal about how the City plans to make this work and developers c ould decide whether they want to move forward. If no guidance is given, some future developers will be bringing ideas forward rather than the City. Keene y : Stated he does not have opposition to a developer - driven road network , but he has issue with the City funding it. Stated he also has issue with trading off the downtown neighborhood to make it happen. Asked if the Digger property is considered underut ilized because it is currently vacant or because of the kind of business th at has been there . Nemeth : Replied that the term u nderutilized compares it to other commercial properties that have better access. Keeney : Commented that higher levels of usag e depend on better access. Asked if it could still be used for the existing type of business without any changes. Nemeth : Affirmed, but noted that with better access there c ould be retail usage rather than the industrial usage that there is now. December 10 , 2012 City Council Minutes 8 Keeney : Confirmed that the v isibility of Hwy 13 is what is attractive to retail business , but without good access it would only have signage value. Queried whether something such as a professional building t hat does not need the high volume access could be succes sful . Nemeth : Replied that this option would provide better connection access to the signal at Hwy 13 / Duluth. Keeney : Appreciated Hedberg’s comments of providing direction for future developers. Hedberg : Affirmed giving direction would be saying that this is the long - term roadwa y plan that we support. Keeney : Asked if he sees build out of Colorado to Pleasant as immediate or future. Hedberg : Responded that will be an important step when Main gets closed off. Believes the 2016 p lan is the one that makes sense as the County has said they will consider that Main and CR 21 will have failed by 2016 and they will remove the stop sign at Main. Main could be closed, but if we do that without the other steps, we will have encumbered downtown. Keene y : Believes construction of medians and walkways should not be done at Main until 2019. Hedberg : Concurred. Construction has to coordinate with the Hwy 13 / CR 21 project. Myser : Asked if staff has enough direction to move forward. Believes there is consensus on the baseline option and pushing through Colorado to Pleasant. Poppler : Stated that the study is about the conceptual nature of the roadway connection. If it is determined that this alignment should move forward, there are many other step s including more public input and feasibility studies for each component of the project. Staff is trying to get a sense from the Council about whether 9C is supported from a conceptual nature in order to finalize the study and move forward with planning. There are many details to work out with the feasibility studies and determining when and how they should occur. Soukup : Stated she does not support opening Arcadia to Pleasant wanting more feedback, now sees value of the ¾ intersection for Pleasant , ag rees with de veloper driven area, believes there should be focus on what we will do with Hwy 13 / CR 21 and Hwy 13 / Duluth. Boyles : Commented that the Bolton & Menk work has ended and we should determine whether their project is concluded. Hedberg : Be lieves the report should be accepted and the project considered concluded. If additional outside services are needed, that should be brought before Council. Keeney : Asked if we have a punch list of final work we need from Bolton & Menk . Poppler: Respond ed that Nemeth highlight ed what the next steps should be an option is endorsed which would be a letter of recommendation from MnDOT and Scott County, but with no recommendation from the Council that step cannot be taken. MOTION BY HEDBERG, SECOND BY SOU KUP TO ACCEPT THE REPORT, CONTINUE THIS AGENDA ITEM FOR 90 DAYS AND DIRECT STAFF TO WORK ON ADDRESSING AS MANY OF THE ISSUES IDENTIFIED AS POSSIBLE AND BRING BACK A FURTHER REPORT. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion ca rried. NEW BUSINESS Consider Approval of the City of Prior Lake 2013 Official Fee Schedule Finance Director Erickson stated the proposed 2013 fee schedule was distributed to the Council for review and asked if there are any questions about it. Comments : Erickson : Questioned having the service fees for development agreements on a scale rather than a fixed amount. December 10 , 2012 City Council Minutes 9 Bishop : Replied the fee is not meant to be arbitrary, but rather the engineering and planning departments will work with developers. Current ly s maller developers have lesser costs while administrative fees are the same. Erickson : Asked if the fee would consist of a base plus a percentage. J. Erickson: Replied that, depending on the complexity of development, there are issues with escrow. Currently an escrow is requested and if costs exceed the escrow we ask it to be replenished. Developers prefer that we only go to them once vs. going back to them for replenishment as they are setting sales prices based on their cost. Keeney : Commented o n the increase o f water fee s. J. Erickson: Replied that it is desired to get water fees to incremental increases and there will probably be a 25 - cent increase per thousand gallons each year for four years . Keeney : Asked if that reflects the change in the water plans from the well to a cooperative agreement. J. Erickson: Replied the plan originally included well no 10 , but using bond proceeds with that. Looking at the operating lease impact with SMSC will be built into future CIP. Hedberg : Suggested t hat the developer fees should remain at 5% or 6% rather than a range unless we can come up with specific criteria for starting at 5% and then adjusting upward. Soukup : Concur with previous comments. Myser : Concur. Asked if more information about the d eveloper fees could be brought to the next meeting. Boyles : Stated that it is desired to use the fee schedule as of January 1. Myser : Seems the Council prefers to stay with 5% unless staff can adjust that item. J. Erickson: Replied it would likely not be ready for the next meeting, but perhaps in the spring . Erickson : Suggested that the garden fee be a specific amount rather than cost per agreement. J. Erickson: Suggested that the residential contractor deposit be effective March 1 because there are a number of permits in the works and it would be administratively difficult to implement by January 1. Erickson : Questioned the cost per agreement for field and softball . J. Erickson: Replied that the cost is dependent upon the services that the organiza tion is requesting. MOTION BY KEENEY, SECOND BY SOUKUP TO APPROVE THE 2013 OFFICIAL CITY FEE SCHEDULE AS MODIFIED , THE DEVELOPER FEES WOULD BE BROUGHT BACK BY STAFF , AND THE RESIDENTIAL CONTRACTOR DEPOSIT WOULD BE EFFECTIVE MARCH 1. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Consider Approval of Ordinance Amending Subsections 1101.1000 (Land Use Descriptions), 1102.1400 ("I - 1" General Industrial Use District), 1102.1500 (Industrial Performance Standards), and 1107.22 00 (Architectural Design) of the Prior Lake Zoning Ordinance Community and Economic Development Director Rogness stated that the proposed revisions to the zoning ordinance were distributed to the Council for review and asked if there were any questions. Comments: Soukup : Asked if some sort of amendment that allows the City to explore adapting available sites for uses other than the zoned uses could be considered. Hedberg : Stated he supports most of the amendments, but suggested that the front yard s etback be changed to 30 feet; the rear yard setback be changed to 15 feet and the side yard setback be changed to ten feet. Erickson : C oncur red with Hedberg comments. Myser : Concurred with Hedberg’s proposed setbacks. Keeney : Concurred. Soukup : W ill support the setback changes. December 10 , 2012 City Council Minutes 10 MOTION BY HEDBERG, SECOND BY ERICKSON TO APPROVE ORDINANCE AMENDMENT 1 12 - 06 APPROVING AN ORDINANCE AMENDING SUBSECTIONS 1101.100 0 , 1102.1400, 1102.1500 AND 1107.2200 OF THE PRI OR LAKE ZONING ORDIN ANCE WITH THE SETBACKS A MENDED TO FRONT YARD SETBACK 30 FEET ; REAR YARD SETBACK 15 FEET AND SIDE YAR D SETBACK TEN FEET. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. MOTION BY SOUKUP, SECOND BY HEDBERG TO DIRECT STAFF TO E XPLORING ALTERNATIVE OPTIONS AND USES FOR LAND USE IN THE COMMERCIAL ZONES . VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. MOTION BY HEDBERG , SECOND BY SOUKUP TO EXTEND TH IS MEETING UNTIL MIDNIGHT VOTE: Ayes by Myser, Erickson, Hedberg, Kee ney and Soukup. The motion carried. Consider Approval of a Resolution Authorizing the Mayor and City Manager to Enter into a Contract with Scott County and Integra on Behalf of the City of Prior Lake for the Purpose of Making High Speed Data Services Ava ilable to Four City Buildings and Four Business Parks in Prior Lake City Manager Boyles described the current system of communication and the proposed fiber service to City buildings and four business parks. Described proposed funding for the project and the cooperative agreement with Scott County. Comments: Myser : Stated he likes this cooperative approach. Asked what it would cost to be able to have open access and wondered what a competitive network would do for us. Hedberg : Responded that this proje ct got to this point because of significant negotiations with Integra starting with a solicited proposal. We will support the County’s desire to do Request for Proposals. Integra wanted to own the connections to the business parks if they were making th e investment. Suggested that the County bid open access as an alternate to the proposal . Soukup : Believes it should be bid with that alternative. Erickson : Asked if we must specify whether we are using a bid process or an RFP process. Rosow : Repli ed that the County believes it needs to comply with the competitive bidding statute. The cooperative agreement is based on them goin g through this formal process. They will publish and ask for bids based on the best value basis which is allowed under the competitive bidding law. Erickson : Suggested that they ask for a bid bond. Keeney : Generally support s this proposal but expressed concern about segments the City is agreeing to pay for that are outside of the City limits . Boyles : Replied that is a fu nction of the cost - sharing agreement; be cause the City is using the County’s fiber backbone and wish es to lateral off it to meet our needs. The County will pay for the segment of CR 21 to Hwy 13 and the City will pay for Hwy 13 to CR 27. Keeney : Asked if the data needs of the fire station and water treatment plant require this capacity and whether other options have been investigated. Boyles : Responded that fiber does not have ongoing costs and there are problems with the line - of - sight options. Myser : Believes the fiber service will cost less and provide some access for the community for economic development. Keeney : Asked how this cost compares to other options. Boyles : Replied there will be an annual $1,200 fee for locates . Keeney : Asked it would be available to other entities if they want to connect. December 10 , 2012 City Council Minutes 11 Boyles : Replied that would have to be bid as open access. The lines to the City will be our lines and we have to agree to let someone use them. Keeney : Asked if the bandwidth can be sublet . Bo yles : Replied we probably could with our own lines. The County would want to approve having someone use their lines; and Integra indicated it was important to them to have a closed system. Erickson: Stated he see s this is a good aspect to economic de velopment and brings Prior Lake a recruiting ability. Will support. MOTION BY HEDBERG , SECOND BY SOUKUP TO APPROVE RESOLUTION 12 - 209 APPROVING A PERPETUAL FIBEROPTIC COOPERATIVE AGREEMENT WITH SCOTT COUNTY AND THE CITY OF PRIOR LAKE, AUTHORIZING THE A DDITION OF A BID ALTERNATE TO CONSIDER OPEN ACCESS SERVICE, AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO SAID AGREEMENT AND AUTHORIZING FUNDING TO CONSTRUCT A FIBER OPTIC SYSTEM SERVING CITY BUILDINGS AND FOUR BUSINESS PARKS. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Consider Approval of a Process and Timeline for Selection to Fill the Council Seat Vacated by Mayor - elect Hedberg City Manager Boyles described the proposed process and timeline for filling the an ticipated Council vacancy . Suggest ed conducting the first City C ouncil meeting on January 7 when a ll four members would be present. Comments: Erickson : Asked how we can solicit for applicants before the post becomes vacant. Boyles : Replied this prop osal provide s as long of a period of time as possible for persons to consider applying. Rosow : Added that the timeline suggested incurs no legal problem with advertising for the vacancy at the proposed time. The Council would not be acting on anything until the vacancy occurs. Keeney : Asked how binding the vote is on the approval of a process and whether a new Council could reconsider it at the January 7 meeting if the new Council prefers an interim appointment and special election. Rosow : Replied the new Council could adopt a motion for a new schedule and if appropriate motions we re made could reconsider the process. Keeney : Asked what procedures would be followed to do that . Roso w : Replied that a member of the prevailing side would have to bring i t up in order to reverse the decision . Stated he would need to review parliamentary law to see how it applies when you have a body that does not have continuous membership such as the new council . Keeney : Commented that the motion was a failure to amend the ordinance . Rosow : Responded that it was a motion to adopt an ordinance , which does not mean that no Council in the future could adopt an ordinance . Keeney : Stated he is inclined to favor soliciting applications, but do es not want to v ote for this and close the door to future action. Myser : Commented that the motion that failed was a specific motion and s omeone could bring forward a differen t motion . Keeney : Stated he favor s soliciting applicants as a Councilmember will be needed, but he favors a n interim appointment. Hedberg : Supports moving forward and understands th ere may be more considerations at the January 7 meeting. December 10 , 2012 City Council Minutes 12 Soukup : Support s moving forward. Suggested the ad state a higher number of hours required for the position . Myser: Belie ves a special election is the right thing to do and this proposed process defines that there is a known gap. MOTION BY HEDBERG, SECOND BY SOUKUP TO ADOPT THE PROCESS AND INITIATE THE SOLICIATION OF CANDIDATES WITH THE CHANGE AS IDENTIFIED TO THE TIMELINE . VOTE: Ayes by Erickson, Hedberg and Soukup. Nay by Myser and Keeney. The motion carried. Hedberg: Clarified that the only change is the date and nothing else on the schedule. Consider Approval of a Resolution Appointing a Person to Fill the Vacancy on the Prior Lake Economic Development Authority City Manager Boyles reviewed the history of the opening on the EDA. Described the interview process. Stated that a review of pertinent statute revealed that the non - city council EDA positions are to be si x - year terms. Noted that the City’s EDA Bylaws state four - year terms so there is a need to transition the four - year to six - year terms. Comments: Myser: Spoke of the applicants interviewed and stated that the consensus of the interview team is to recom mend appointment of Dave Chromy. Commented on the caliber of candidates and s uggested consideration of expansion of the membership of the EDA from five to seven members. MOTION BY MYSER, SECOND BY HEDBERG TO APPROVE RESOLUTION 12 - 210 APPOINTING DAVE CHROMY TO SERVE ON THE CITY OF PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY (EDA) VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. MOTION BY HEDBERG , SECOND BY SOUKUP DIRECTING STAFF TO DRAFT LANGUAGE EXPANDING MEMBERSHIP FROM FIVE TO SEVEN MEMBERS. VOTE: Ayes by Myser, Erickson, Hedberg and Soukup. Nay by Keeney. The motion carried. Rosow : Believes the length of term should be dealt w hen the Bylaws are reviewed. Keeney : Believes that Councilmember Hedberg’s term will ter minate when he becomes Mayor and that will need to be taken care of during annual appointments. Hedberg : Stated he will prepare a roster of appointments for approval at the first meeting and questioned whether that should include EDA members. Boyles : B ylaws do not enumerate that. Keeney : Believes the process for appoint ing EDA members is in the charter resolution. Erickson : Believes the Mayor suggests members and the Council has to approve them. Keeney: Believes the EDA needs to declare the vacanc y of Hedberg and does not know if the EDA will meet again before the January 7 meeting of the Council. OTHER BUSINESS Community Events Soukup: Commented that the Council accomplished a lot at this last meeting together. Erickson : Thanked all for allowi ng him to serve for the past seven years. December 10 , 2012 City Council Minutes 13 Keeney : Thanked Erickson and Myser for their service to the City stating he b elieved they both always held the best interest of the residents. A DJOURNMENT With no further business brought before the Council, a mo tion to adjourn was made by Soukup and seconded by Keeney . The mot ion carried and the meeting adjourned at 11.33 p.m. __________________________________________ ________________________________________ Frank Boyles, City Manager Charlot te Green, Administrative Assistant December 10 , 2012 City Council Minutes 14