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HomeMy WebLinkAboutDRAFT February 11, 2013 City Council Minutes O � PRIp ti � � V "r' 4646 Dakota Street SE Prior Lake, MN 55372 'LI INNESp� P REGULAR CITY COUNCIL MEETING MINUTES February 11, 2013 CALL TO ORDER The meeting was called to order at 7:00 p.m. Present were Mayor Hedberg, Councilors Keeney, Morton and Soukup, City Manager Boyles, City Attorney Rosow, Finance Director Erickson, City Engineer / Inspections Director Poppler, Fire Chief Hartman, Public Works / Natural Resources Di- rector Gehler, Communication and Economic Development Director Rogness, Assistant City Man- ager Kansier, Assistant City Manager Meyer and Administrative Assistant Green. OATH OF OFFICE Mike McGuire was appointed effective February 11, 2013 to the vacancy created by operation of law when Ken Hedberg was elected Mayor. The Oath of Office was administered to McGuire by District Court Judge Gary Bastian. RECESS Mayor Hedberg called a brief recess at 7:02 p.m. RECONVENE The meeting was reconvened at 7:05 p.m. McGuire joined the City Council at the dais. 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 govern- mental topics rather than private or political agendas. Topics may be addressed at the Public Fo- rum that are on the agenda except those topics that have been or are the subject of a scheduled public hearing or public information hearing before the City Council, the Economic Development Authority (EDA), Planning Commission, or any other City Advisory Committee. The City Council may discuss but will not take formal action on Public Forum presentations. Matters that are the subject of pending litigation are not appropriate for the Forum. Comments: Gene Tremaine, 16500 Inguadona Beach Circle, queried how he could pose individual questions to council members. Boyles: Replied that questions could be sent by email, posed directly or telephoned to individual Council members. Tremaine: Asked if he could also pose questions to staff members in that manner. Boyles: Affirmed. Hedberg: Commented that if Tremaine feels he has broad-based themes about actions by the City, he could bring those to the forum. Keeney: Added that to the extent that he could summarize his concerns, he should do so. Tremaine: Stated he believes Council expenses should be reduced by ten percent, City budgets should be reduced by five percent, Council should consider and determine which services could be limited to achieve cost reductions and the City debt should be reduced or retired. APPROVAL OF AGENDA MOTION BY SOUKUP, SECOND BY KEENEY TO APPROVE THE AGENDA. Phone 952.447.9800 / Faac 952.447.4245 / www.cityofpriorlake.com Boyles: Believes that item 11 C, Consider Approval of a Resolution Approving the Scott County Transit Operations and Capital Plan for 2012-2013, should be looked at more thoroughly in a work session and requested that it be removed from the agenda. Hedberg: Stated he would like to add an old business item, 106, which isrenewal of a motion for the item relating to plans and specifications for street lighting for the Ridgemont / Main project with the intent to limit to no more than nine lights. Keeney: Asked if item 11 C has a deadline to be met. Boyles: Replied the action is not under a deadline. Hedberg: Commented that the most recent SCALE meeting highlighted significant changes in funding for transit services and this needs a serious look by the City Council. MOTION BY KEENEY, SECOND BY SOUKUP TO DEFER ITEM 11 C TO A WORK SESSION. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. MOTION BY MCGUIRE, SECOND BY SOUKUP TO ADD ITEM 10 B, RENEW A MOTION TO CONSIDER PLANS AND SPECIFICATIONS FOR THE RIDGEMONT / MAIN AVE LIGHTING PROJECT WITH A SPECIFICATION TO LIMIT THE NUMBER OF LIGHTS TO NO MORE THAN NINE. Soukup: Asked if staff has information about the plans and specifications readily available for dis- cussion. Poppler: Affirmed. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. VOTE (to approve the agenda): Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. APPROVAL OF MEETING MINUTES MOTION BY SOUKUP, SECOND BY MORTON TO APPROVE THE MINUTES OF THE JANU- ARY 28, 2013 CITY COUNCIL MEETING. VOTE: Ayes by Hedberg, Keeney, Morton and Soukup. McGuire abstained as he was not a member of the Council at that time. 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 Resolution 13-017 Declaring the Official Intent of the City of Prior Lake to Reimburse Certain Expenditures from the Proceeds of Bonds to be Issued by the City C Consider Approval of December 2012 Treasurers Report Morton: Requested that all items be removed from the Consent Agenda. MOTION BY MCGUIRE, SECOND BY SOUKUP TO CONSIDER APPROVAL OF CLAIMS LIST- ING. Morton: Questioned the bonding costs and asked if there was a new bond initiative. Erickson: Replied the listed item was a bond payment for the indicated project. Added that some descriptions will provide insight; i.e. bond principal or bond interest indicates a bond payment. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. MOTION BY SOUKUP, SECOND BY KEENEY TO CONSIDER APPROVAL OF RESOLUTION 13-017 DECLARING THE OFFICIAL INTENT OF THE CITY OF PRIOR LAKE TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY DRAFT 02 11 13 City Council Meeting Minutes 2 Morton: Sought clarification about whether this would be one bonding issue or if separate projects have separate bonds. Erickson: Typically try to combine projects to minimize bonding costs. Four projects are identified in the transportation plan. Morton: Asked if all of the projects have been approved to go forward. Erickson: Replied that this is a housekeeping issue as it is a legal requirement to declare the in- tent to possibly bond. There is a limitation on days in advance to declare intent. There is no re- quirement of the Council to go forward with the bond. Keeney: Asked if this action would limit us to maximum amounts we can bond. Erickson: It indicates a maximum amount, but does not include the costs of bonding. Keeney: Asked whether another intent would have to be issued if the projects exceed this amount. Rosow: Responded that if the estimate is in good faith, we would not have to go back for another declaration. This enables the City to reimburse expenses incurred associated with planning and learning whether we will move forward with the bonding projects. Morton: Asked if bond considerations come back to the Council if the projects go forward. Erickson: Replied there are multiple steps to actually issue bonds and it comes back to the Coun- cil to authorize the sale of bonds and to approve the sale. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. MOTION BY SOUKUP, SECOND BY MCGUIRE TO APPROVE THE TREASURER'S REPORT Morton: Asked if monthly treasurer's report will always be 30 days in arrears. Erickson: Affirmed. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. PRESENTATIONS No presentation was scheduled. PUBLIC HEARINGS Consider Approval of a Resolution Amending Resolutions 10-097, 00-119, 96-99 and 89-17 which Established the Prior Lake Economic Development Authority (EDA) Pursuant to the Provisions of Minnesota Statutes, Chapter 469 Community and Economic Development Director Rogness stated that the EDA currently is composed of five members, two of whom are council members. Interest was expressed in expand- ing membership to seven and the Enabling Resolution must be amended in order to do so. Mayor Hedberg opened the public hearing at 7:33 p.m. No person stepped forward to speak. MOTION BY MCGUIRE, SECOND BY MORTON TO CLOSE THE PUBLIC HEARING. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried and the public hearing closed at 7:34 p.m. '�, Soukup: Clarified if the motion is to change membership from five to seven members. Hedberg: Stated that other items are included as housekeeping items. Rosow: A statute referred to in the Enabling Resolution is that of a statute that has been repealed. Appropriate statute was researched and is inserted in the proposed resolution. MOTION BY KEENEY, SECOND BY SOUKUP TO APPROVE A RESOLUTION AMENDING ; RESOLUTIONS 10-097, 00-119, 96-99 AND 89-17 WHICH ESTABLISHED THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY PURSUANT TO THE PROVISIONS OF MINNESOTA DRAFT 02 11 13 City Council Meeting Minutes 3 STATUTES, CHAPTER 469, INCLUDING REVISING MEMBERSHIP FROM FIVE TO SEVEN MEMBERS. Keeney: Questioned whether item 106 in the resolution should be re-worded to reflect that the EDA is levying its own monies. Rosow: Replied that the section is not recommended for change. Although it is referred to as the EDA levy, the City Council actually makes and approves the levy. The EDA submits a budget; and if it is amended, the City Council approves the amendments. The EDA does not have the authority on its own to make a levy. Keeney: Clarified that the intention was to maintain control at the Council levy and not give the EDA unapproved levy authority and he would like to see that specifically listed. Rosow: Council has the control over the levy. Stated the language can be pulled from statute and particular reference made to it. Keeney: Just want to protect the City and preclude any question on this matter on the levy issue. Rosow: Commented that if it is the Council's intent is to approve seven members, he suggests approving this proposed resolution tonight and bring back another resolution for approval to ad- dress limitations of power. Keeney: Expressed concern that the levy is not mentioned as a limitation in any area. Rosow: It is a complicated statutory scheme and it takes an understanding of how the statutes were parsed together over time. Unless there is special legislation giving authority for the EDA to levy, the average EDA does not have authority to levy. Wants to assure the language matches statutory requirements. Keeney: Noted the other changes could address urgency from the change to seven members and allow soliciting for additional members. McGuire: Supports staying with a five member board. Commented that more members does not mean a better board, there is more expense to support the board and it dilutes the Council influ- ence. Soukup: Supports having seven members. Agreed there is additional cost. Noted there are two councilmembers appointed to this group; but they may not have the expertise of business owners. Wants to pull the best group of minds available. Favors Keeney's additional limitations on EDA tax levying. Keeney: Asked if there are interested candidates to expand to seven members. Boyles: At the time of the last vacancy there were four applicants for one position. They seemed to be high quality applicants, but it is unknown if they are still interested. Hedberg: Asked if it is in the framework of statute to have a minimum of five and up to seven. Noted that the proposed language says "we shall have seven..." Rosow: Language of bylaws states "membership shall consist of ..." to avoid having an even number and result in tie votes. Having an even number is not a good process. Keeney: Commented that existing EDA members have waived per diems. Reflecting on the input from the public on reducing board costs, asked if the per diem amount is in the bylaws. Asked if the same amount of budget can be divided by seven members. Rosow: Bylaws state that commissioners shall be paid a per diem to be determined by the City Council. Hedberg: Believes it appropriate to thank those who have generously forgone their per diems and address it in 2014. Keeney: Just thought it might address budgetary concerns; agreed we are beyond that point for this year. Hedberg: Stated he does not feel strongly about going from five to seven. Expressed concern that it might dilute Council influence in the long term if there are five non-elected members. Com- mented that the Council appears to have work to do to evaluate if economic development is one of its priorities and he is not sure the Council is willing to make the investments that proactive eco- nomic development require. Prefers to hold off changing the board until there is a clear sense from the Council on strategy for economic development. DRAFT 02 11 13 City Council Meeting Minutes 4 VOTE: Aye by Soukup. Nays by Hedberg, Keeney, McGuire and Morton. The motion failed. MOTION BY KEENEY, SECOND BY MORTON TO APPROVE RESOLUTION 13-018 AMENDING RESOLUTIONS 10-097, 00-119, 96-99 AND 89-17 WHICH ESTABLISHED THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY PURSUANT TO THE PROVISIONS OF MINNESOTA STATUTES, CHAPTER 469, WITH DIRECTION TO STAFF TO PREPARE TAX LEVY LIMITING LANGUAGE TO BE BROUGHT TO THE COUNCIL AT A FUTURE DATE. VOTE: Ayes by Hedberg, Keeney, McGuire and Morton. Nay by Soukup. The motion carried. OLD BUSINESS Consider Approval of a Second Councilor to the Economic Development Authority (EDA) Hedberg: Stated it is the Mayor's responsibility to make the appointment and the Council then af- firms the appointment. Invited Council members to express their interest. Morton: Stated she previously expressed interest, but now desires to withdraw in support of Keeney. Keeney: Stated his interest in appointment to the EDA comes from a desire to assure there is an appointment of someone with experience in these matters. Commented that his hesitation comes from personal time commitment. Believes he can do the job and his policy direction would be to direct the EDA to specific, actionable activities that give an immediate impact on direction. Hedberg: Noted that an issue discussed by the EDA for two years is identifying resources and business incentive programs. Asked Keeney his position on those incentives. Keeney: Believes there should be three components to an incentive: 1) does it get the job done; 2) is it such a specific incentive that it is too narrow in scope (individual grants) as he would like to see something for public interest and benefit (street improvement); and 3) it should have a public benefit that can be measured. Hedberg: Clarified that Keeney's perspective is that if it is clearly a public benefit, he could sup- port investing in it. Keeney: Responded that he generally favors capital staying in the public; i.e. building a parking lot is a more public benefit than giving a break to an individual business or property owner. MOTION BY HEDBERG, SECOND BY SOUKUP TO NOMINATE COUNCILOR KEENEY TO THE � PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY. Soukup: Asked what the length of term would be. Hedberg: Replied the Bylaws state that a Councilor's EDA appointment term is coterminous with their time in office. Soukup: Clarified that would mean that terms of Hedberg and Keeney would potentially terminate at the end of 2016. Morton: Asked Keeney if he is the liaison to the EDAC and would he want to retain that role. Keeney: Replied that appointment was revoked. Hedberg: It is the EDA responsibility to appoint a liaison to the EDAC and it does not have to be one of the Council members appointed to the EDA. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. Consider Approval of a Renewed Motion on the Plans and Specifications for Lighting for the Ridgemont / Main Improvement Project, With a Specification to Limit the Number of Lights to no more than Nine. � MOTION BY SOUKUP, SECOND BY MCGUIRE TO RENEW THE MOTION. Soukup: Requested staff to review information presented at the January 28, 2013 City Council meeting. Poppler: Provided the information requested and commented that hardware for the lights is in short supply and staff would like to get the materials for the lights ordered. McGuire: Asked if we are obligated to purchase a specific number of lights. DRAFT 02 11 13 City Council Meeting Minutes 5 Poppler: Replied that this action would be to solicit quotes. McGuire: Asked if information about more basic light styles could be included in order to see the cost differences. Hedberg: Queried whether the first vote should be on renewing a motion and if that passes, then can discuss details. Rosow: Affirmed. VOTE: Ayes by Hedberg, McGuire and Soukup. Keeney and Morton opposed. The motion car- ried. MOTION BY SOUKUP, SECOND BY MCGUIRE TO APPROVE THAT THE RIDGEMONT / MAIN INTERSECTION IMPROVEMENT PROJECT HAVE NO MORE THAN NINE LIGHTS. McGuire: Clarified that means fewer lights than nine can be approved. Rosow: Affirmed. Morton: Asked if the lights for the monument sign are included in the nine lights. Poppler: Believes it is intended to not include the ground lights for the monuments. Hedberg: Stated the monument lighting should go along with the approval of a monument. Soukup: Asked which lights are being debated for removal. Poppler: Identified lights on the south side of Main and at northern end of the project past the ten- nis court. Soukup: Asked if there would be lights in the community garden area. Poppler: Replied that would come before the Council separately. Keeney: Commented his "no" vote was on the extreme cost of the lights and he continues to op- pose the cost of the decorative lights. Understands this is a centerpiece of the City and an en- trance to the park and if we were going to spend money on lights, this would be the place to do it; but does not want to start installing them everywhere. Hedberg: Asked if we know the installed cost of the lights at the Arcadia intersection. Poppler: Replied it was $7,100 per light including wiring, concrete base, installation, etc. Hedberg: Asked if it is a direct comparison to the lights we are proposing. Poppler: Replied we are considering fewer lights here so the cost per light goes up. Hedberg: Understands there is a long lead time and staff wants to order the hardware. Asked if authorization will be sought from the Council at the time the project is bid and approved and a spe- cific number of lights identified at that time. Poppler: Affirmed. Keeney: Stated it would be helpful to have alternatives for different styles of lighting and perhaps just the lights at the intersection and along Main would be the decorative type. Morton: Stated the comparison should include information about installation costs, etc. Soukup: Concurred with Keeney's request for alternates as well as the cost comparison with light- ing we have already done. Poppler: Commented we are currently trying to get hardware costs and other costs will come when the project is bid so the install costs will not be available until the project is bid. Another op- tion could be to bid it all in as an alternate with the Ridgemont project and then have a delay with the install. Keeney: Need to know the ballpark per light infrastructure cost rather than discuss how many lights we want. It would be helpful to have that information even though not necessarily bid; the figures from the Arcadia project would serve. MOTION BY KEENEY, SECOND BY MCGUIRE TO AMEND THE MOTION TO OBTAIN BIDS FOR DECORATIVE HARDWARE FOR LIGHTS AND TO PROVIDE COMPARABLES FOR ECONOMY STYLE LIGHTS WITH THE POTENTIAL SELECTION OF DIFFERENT STYLES IN DIFFERENT LOCATIONS. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. DRAFT 02 11 13 City Council Meeting Minutes ( MOTION BY KEENEY, SECOND BY MCGUIRE TO APPROVE THAT THE RIDGEMONT / MAIN INTERSECTION IMPROVEMENT PROJECT HAVE NO MORE THAN NINE LIGHTS AND TO OBTAIN BIDS FOR DECORATIVE HARDWARE FOR LIGHTS AND TO PROVIDE COMPARA- BLES FOR ECONOMY STYLE LIGHTS WITH THE POTENTIAL SELECTION OF DIFFERENT STYLES OF LIGHTS USED IN DIFFERENT LOCATIONS. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. NEW BUSINESS Consider Approval of a Resolution Amending the Bylaws of the Prior Lake Economic De- velopment Authority, Declaring Two Vacancies to Exist on the Body and Approving a Time- line and Process to Fill the Positions City Attorney Rosow highlighted the proposed changes to the bylaws. Community and Eco- nomic Development Director Rogness commented that the impetus to make bylaws amend- ments is to meet statute for terms being six years. It was decided to consider any changes that would be beneficial in the overall operation of the EDA; i.e. removing code of conduct, conduct of interest, gifts and favors and combining them into a code of ethics. MOTION BY MCGUIRE, SECOND BY SOUKUP TO APPROVE RESOLUTION 13-019 APPROV- ING AN AMENDMENT TO THE BYLAWS FOR THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY. Morton: Asked if the City will be at risk if the code of conduct language is removed. Stated the proposed language does not seem direct enough. Rosow: Responded that the intent was to more closely follow State statute. The proposed Article 16 covers the topic succinctly and directly in alignment with statute. Noted that the City is bound by the statute whether it is included in the bylaws or not. Other cities do not reflect these statutes in the bylaws. Morton: Asked whether the EDA Enabling Resolution revisions proposed regarding the tax levy limitations should also be addressed in the bylaws to keep the documents consistent, or whether that is unrelated. Rosow: Replied that is an unrelated matter that is specifically directed in the Enabling Resolution to limit the authority of the EDA. Keeney: Offered the historical perspective that ethics were included in the bylaws to provide an informative mechanism for the advisory committees whose members have less experience on these matters. Rosow: Agreed that is an appropriate way to instruct committees. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. Consider Approval of a Resolution Approving a Sewer and Water Fee Deferral Program Pol- icy Community and Economic Development Director Rogness discussed the types of fees pro- posed for deferral and provided a comparison of existing deferrals and proposed deferrals as well as the alignment of the proposed deferrals with the Metropolitan Council. An example of how the proposed fee deferrals would apply to a small business was provided. Noted that the regional pro- gram requires no funding by the City, but is administered by the City on the behalf of the Metropoli- tan Council. The local program is funded by the Economic Development Authority. MOTION BY KEENEY, SECOND BY MORTON TO APPROVE RESOLUTION 13-020 APPROV- ING THE SEWER AND WATER FEE DEFERRAL PROGRAM POLICY, APPROVING A MASTER SAC DEFERRAL AGREEMENT WITH THE METROPOLITAN COUNCIL, AND AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO THE MASTER SAC DEFERRAL AGREE- MENT WITH THE METROPOLITAN COUNCIL. DRAFT 02 11 13 City Council Meeting Minutes 7 Morton: Asked how much interest there is in the program and how long the program would exist if the EDA sets aside money for it. Rogness: Replied the extent of interest is unknown at this time. Stated Prior Lake is positioned well for the program as many businesses fit the small business category. This is intended to be an ongoing program with the Metropolitan Council. Believes the SAC deferral master agreement does not have a time limit; the intent is to participate as long as there are applicants. Added that staff will make the deferral program known to businesses as they contact the City or are applying for building permits. Hedberg: Commented that the City program was drafted in response to the Fong's event center permitting process and they used the program. Morton: Clarified that the program is for new development, not for existing business. Keeney: Asked if thiswill this apply to connection charges for Welcome Avenue businesses that are being added to water and sewer for the first time. Stated the City will want to pass the Metro- politan Council program along. Noted that the program needs a pool of capital to start up; but he does not see this as a financial drain as most costs are administrative and other costs would be recouped. Providing these types of things is good use of economic development abilities. Will support. Morton: Asked how often interest rates will be evaluated. Rogness: Replied that the Metropolitan Council adjusts the interest rate at the end of each calen- dar year. The City would replicate the interest rate in local program A and establish the local pro- gram B rate at the same time. Erickson: Program B rates would be established based on most recently issued bonds. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. MOTION BY MCGUIRE, SECOND BY SOUKUP TO APPROVE ORDINANCE AMENDMENT 113- 04 AMENDING SECTION 704.500, 705.600 and 705.1002 RELATING TO DEFERRAL OF CER- TAIN WATER CONNECTION, SEWER CONNECTION, WATER TOWER CHARGES AND MET- ROPOLITAN SAC CHARGES FOR ECONOMIC DEVELOPMENT PURPOSES. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. Rogness: Stated that a revision is proposed to the sewer and water deferral program policy that was distributed which would state that the minimum three SAC units are determined before credits. MOTION BY MORTON, SECOND BY KEENEY TO APPROVE THE SEWER AND WATER FEE DEFERRAL PROGRAM POLICY WITH AMENDMENTS REFLECTING THAT THE MINIMUM SAC UNITS WILL BE DETERMINED BEFORE CREDITS. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. OTHER BUSINESS Soukup: Stated that interested persons can find the City Council agenda posted in the Prior Lake American and also on the City's Website in the Document Center. Hedberg: Prior Lake Polar Bear Plunge will be held this Saturday at Sand Point Beach and he has agreed to take the plunge. Keeney: Stated there is a new City Park and Trail map showing all of the trails, park locations, etc. and it is available at City Hall and on the City's Website. Hedberg: Noted that the Web page for parks and trails has a link to the new map. ADJOURNMENT With no further business brought before the Council, a motion to adjourn was made by Morton and seconded by Soukup. The motion carried and the meeting adjourned at 9:11 p.m. Frank Boyles, City Manager Charlotte Green, Administrative Assistant DRAFT 02 11 13 City Council Meeting Minutes $