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HomeMy WebLinkAboutDRAFT 07 08 13 City Council Minutes O .� PRIp� F� � v � 4646 Dakota Street SE Prior Lake, MN 55372 � REGULAR CITY COUNCIL MEETING MINUTES July 8, 2013 CALL TO ORDER The meeting was called to order at 7:00 p.m. Present were Mayor Hedberg, Councilors Keen- ey, McGuire and Soukup, City Manager Boyles, City Attorney Rosow, City Engineer / Inspec- tions Director Poppler, Public Works / Natural Resources Director Gehler, Finance Director Er- ickson, Economic and Development Director Rogness, Planner Matzke, Assistant City Manager Meyer and Administrative Assistant Green. Councilor Morton was absent. 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 gov- ernmental topics rather than private or political agendas. Topics may be addressed at the Pub- lic Forum that are on the agenda except those topics that have been or are the subject of a scheduled public hearing or public information hearing before the City Council, the Economic Development Authority (EDA), Planning Commission, or any other City Advisory Committee. The City Council may discuss but will not take formal action on Public Forum presentations. Matters that are the subject of pending litigation are not appropriate for the Forum. Comments: No person stepped forward to speak. APPROVALOFAGENDA Boyles: Requested that old business items 9B, Consider Approval of Resolution 13-089 De- claring Costs to be Assessed and Ordering Preparation of an Assessment Roll and Establishing the Date of the Assessment Hearing for the Sunset Avenue Improvements Project (City Project # 13-011), and 9C, Consider Approval of Resolution 13-090 Declaring Costs to be Assessed and Ordering Preparation of an Assessment Roll and Establishing the Date of the Assessment Hearing for the County State Aid Highway 12 Improvement Project (City Project #12-002), be moved to the Consent Agenda as 5F and 5G. MOTION BY MCGUIRE, SECOND BY SOUKUP TO APPROVE THE AGENDA WITH THE RECOMMENDED CHANGES. VOTE: Ayes by Hedberg, Keeney, McGuire and Soukup. Councilor Morton was absent. The motion carried. APPROVAL OF MEETING MINUTES MOTION BY KEENEY, SECOND BY SOUKUP TO APPROVE THE MINUTES OF THE JUNE 24, 2013 CITY COUNCIL MEETING AS PRESENTED. VOTE: Ayes by Hedberg, Keeney, McGuire and Soukup. Councilor Morton was absent. The motion carried. CONSENT AGENDA City Manager Boyles reviewed the items on the consent agenda. Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com A. Consider Approval of Claims Listing B. Consider Approval of Resolution 13-084 Entering into an Agreement with Xcel Energy for the Installation of Street Lighting for the County State Aid Highway 12 and Sunset Avenue Improvement Projects (City Projects #12-002 and #13-011) C. Consider Approval of Resolution 13-085 Requesting Funding from MnDOT through the Municipal Agreement Program for the Trunk Highway 13/150th Street Improvement Project D. Consider Approval of Resolution 13-086 Approving a Final Plat and Development Con- tract for Eagle Creek Estates and Authorizing the Mayor and City Manager to Execute a Development Contract E. Consider Approval of Resolution 13-087 Authorizing Purchase of Two 2014 Police Inter- ceptor Utility Vehicles F. Consider Approval of Resolution 13-089 Declaring Costs to be Assessed and Ordering Preparation of an Assessment Roll and Establishing the Date of the Assessment Hearing for the Sunset Avenue Improvements Project (City Project # 13-011) G. Consider Approval of Resolution 13-090 Declaring Costs to be Assessed and Ordering Preparation of an Assessment Roll and Establishing the Date of the Assessment Hearing for the County State Aid Highway 12 Improvement Project (City Project #12-002) MOTION BY SOUKUP, SECOND BY MCGUIRE TO APPROVE THE CONSENT AGENDA. VOTE: Ayes by Hedberg, Keeney, McGuire and Soukup. Councilor Morton was absent. The motion carried. PRESENTATIONS No presentations were scheduled. PUBLIC HEARINGS Consider Approval of Resolution 13-088 Providing for the Vacation of a Portion of Right of Way Adjacent to 16653 Northwood Road and 3121 Butternut Circle and Northwood Road Planner Matrke displayed areas that have been petitioned for vacation of right of way by the property owners. Described how the right of ways were created and how the roadway has changed since that time. Vacation is recommended by staff. MOTION BY MCGUIRE, SECOND BY SOUKUP TO OPEN THE PUBLIC HEARING. VOTE: Ayes by Hedberg, Keeney, McGuire, and Soukup. Councilor Morton was absent.The motion carried and the public hearing opened at 7:15 p.m. Comments: No person stepped forward to speak. MOTION BY MCGUIRE, SECOND BY SOUKUP TO CLOSE THE PUBLIC HEARING. VOTE: Ayes by Hedberg, Keeney, McGuire, and Soukup.Councilor Morton was absent.The motion carried and the public hearing closed at 7:16 p.m. Rosow: Clarified the vacation of the park by noting that if the property is vacated it goes back to the original grantor which includes the heirs of the grantor, not the successor in property ownership of the lot. Regarding Outlot A, it has been deeded from the State of Minnesota and it probably comes with use restrictions so it cannot be deeded away for any other use and cannot be sold by the City. DRAFT 07 08 13 City Council Meeting Minutes 2 MOTION BY MCGUIRE, SECOND BY SOUKUP TO APPROVE RESOLUTION 13-088 PROVIDING FOR THE VACATION OF A PORTION OF THE NORTHWOOD ROAD AND BUTTERNUT CIRCLE RIGHT OF WAY. Keeney: Asked how much right of way will remain on Butternut Circle if the vacation is granted. Matzke: Fifty feet. Keeney: Asked if that is wide enough for pedestrians to walk without trespassing. Matzke: Affirmed. Keeney: Commented that it appears that Outlot A is no longer being used for a wetland. VOTE: Ayes by Hedberg, Keeney, McGuire and Soukup. Councilor Morton was absent. The motion carried. Consider Approval of Ordinance 113-09 Annexing 10.4 Acres of Property in Section 10 of Spring Lake Township Pursuant to Minnesota Statutes 414.033, Subd. 2(Hunter) Community and Economic Development Director Rogness displayed the location of area proposed for annexation. Displayed the four lots anticipated to be developed in the area. Dis- cussed annexation criteria. MOTION BY SOUKUP, SECOND BY KEENEY TO OPEN THE PUBLIC HEARING. VOTE: Ayes by Hedberg, Keeney, McGuire, and Soukup. Councilor Morton was absent.The motion carried and the public hearing opened at 7:24 p.m. Comments: Jesse Johnson, 17796 Cleary Trail, asked what processes will be followed to assure: the new houses will look like other houses in the area; stormwater facilities are adequate; and including the new homes as part of the homeowner's association. Brian Smith, 17645 Nature's Way, asked about wetland buffers and whether they will be re- drawn, and what can be done to assure there will be no negative impact on adjacent properties. Tim Bullock, 17791 Cleary Trail, sought clarification that there are four lots and whether they are intended for single family homes. MOTION BY KEENEY, SECOND BY MCGUIRE TO CLOSE THE PUBLIC HEARING. VOTE: Ayes by Hedberg, Keeney, McGuire, and Soukup. Councilor Morton was absent.The motion carried and the public hearing closed at 7:29 p.m. Rogness: Responded to the public hearing questions by stating that, generally, this public hearing process is the first step in a lengthy review of the property for the lots. The state must approve the annexation. Other public hearings will be held and the residents will be invited to them. All questions will be better answered as the process moves forward. The City does not dictate the style of homes, but the plan for that comes out in the platting process. Storm sewer will be reviewed by the engineering staff. Existing ponding was displayed. Existing wetlands will be taken into account when platting the lots. The applicant has not informed the City at this time whether there is intent to add the lots to the homeowners association. Hedberg: Asked if the Enclave at Cleary is a PUD or a standard development. Rogness: Standard. McGuire: Asked if there will be a homeowner's association if it is a standard subdivision. Rosow: Replied that most association declarations contain or do not contain a provision to al- low the addition of adjoining properties so the current declarations of the HOA would have to be reviewed. If addition of properties is allowed in the declaration it becomes a matter of agree- ment between the developer and those who control the HOA; and, possibly approval of the members. DRAFT 07 08 13 City Council Meeting Minutes 3 Keeney: Commented that there are wetlands to the north of this property and there are addi- tional lots that currently are not in the City limits. Asked if any of them are developable and would need to have access at some point. Poppler: Responded that there is some developable property, but the wetland is a barrier to extending City water and sewer at that location. Keeney: Clarified that this would be the end of the street in that location and any other devel- opment would be from a different street. Boyles: Reiterated that some of the questions posed cannot be answered at this time. Action of annexation is a separate and discrete action subject to a variety of statutory requirements. Then the platting process begins which includes public hearings and opportunities for input. Keeney: Questioned whether the graphic depicting four lots and road connections is binding at this time. Rogness: Replied that it is not and this more closely resembles a ghost plat. Keeney: Commented that other features such as a pond may need to be added to address stormwater issues. Hedberg: Asked if the remainder of the property, other than the proposed four lots, is wetlands. Rogness: Affirmed. MOTION BY MCGUIRE, SECOND BY SOUKUP TO APPROVE ORDINANCE 113-09 ANNEX- ING LAND IN SECTION 12, SPRING LAKE TOWNSHIP, SCOTT COUNTY, MINNESOTA, PURSUANT TO MINNESOTA STATUTES 414.033, SUBDIVISION 2(3), PERMITTING AN- NEXATION BY ORDINANCE. VOTE: Ayes by Hedberg, Keeney, McGuire and Soukup. Councilor Morton was absent. The motion carried. OLD BUSINESS Consider Approval of a Report Related to the Attorney General's Opinion Mayor Hedberg reviewed the history of the two complaints received from the Citizens for Ac- countable Government. Both were related to the City Manager's contract and compensation. Both accused of violating statute and regulations and made complaints about policy decisions made by the Council. Stated the Council has an obligation to protect the City and residents and assure that operations are within the law; and it is important to make that determination and put this issue behind us. Legal opinion was sought. Stated that anyone can place a complaint about policy decisions and there should be open deliberation about that. City Attorney Rosow stated that two letters were received. One argued that the City failed to comply with disclosure since car allowance and tenure adjustment were not included in the 2012 posting. The second letter contended it was illegal to have paid the City Manager a tenure adjustment and asked for that portion of salary to be clawed back. At the time of the second letter, it was discussed at Council and he informed Council he would seek the Attorney Gen- eral's opinion. The Attorney General's letter in response is included with this agenda report. The Attorney General said they would not answer the questions because they do not give opin- ions regarding interpretation of contracts or other matters and, therefore, declined to answer. They noted the City had already made a determination with respect to that issue which the At- torney General said was final absent a judicial decision to the contrary. Guidance from the At- torney General with respect to that matter is set forth with other opinion letters from the Attorney General and state that the City Attorney is the appropriate source person to answer questions to the municipal authority. Regarding whether tenure payment was appropriate, the Attorney General did not answer the question and said they do not answer questions of contract interpre- tation. They recommended contacting the State Auditor's Office and noted that office had dis- tinguished base salary from additional compensation in the form of bonuses or performance pay, etc. He has consulted written opinions from the State Auditor to confirm that payment of DRAFT 07 08 13 City Council Meeting Minutes 4 tenure adjustment was legally permissible. Commented on statute referred to as the Governor's cap. The argument that the City Manager salary was under the cap, but the maximum salary range was not reached and, therefore, the tenure pay should be paid back used an analysis combining two separate subjects that are not related. The contract with respect to tenure ad- justment does not violate State law and the Council's approval of that contract is allowed by State law; and there is no basis for clawing back payments made to the City Manager under that contract. Hedberg: Stated that report deals with whether any law or regulation was violated, which is separate from policy decisions made over time and whether they have been appropriate which will be discussed later. Keeney: Commented that part of the accusation that came in with the second letter had to do with dissatisfaction regarding posting requirements. Stated he is happy to learn that the City Attorney's opinion is corroborated by other authorities on the matter. Stated that the Council has been following the rules as interpreted and he hopes this will be the end of this complaint. Does not want to dismiss concerns regarding transparency, but feels satisfied that Council ac- tion is in compliance with statute. Soukup: Stated the Council is constantly trying to be more transparent. Commented that peo- ple may not have full knowledge of an issue because they get their information from the news- paper or other sources, but do not attend the meetings. Believes that questioning whether the Council is violating the law and dissatisfaction with the law itself may have led some people to go too far. Stated this issue has been responded to and if there is not clear understanding, it would help to ask more questions rather than toss out accusations. Expressed a desire for more involvement of this group with staff to have their questions answered. McGuire: Concurred with previous comments. Hedberg: Commented that it is important when accused of violating statutes and regulations to seek legal opinion. If a determination had been made that violations had occurred, there would have been other action to take. Pleased that opinions validate that no law was broken. MOTION BY HEDBERG, SECOND BY SOUKUP THAT A DETERMINATION HAS BEEN MADE THAT STATUTES AND REGULATIONS HAVE NOT BEEN VIOLATED AS ACCUSED AND THAT PORTION OF THESE COMPLAINTS ARE DISMISSED. VOTE: Ayes by Hedberg, Keeney, McGuire and Soukup. Councilmember Morton was absent. The motion carried. Assistant City Manager Meyer reviewed history of actions taken by the Council regarding transparency in reporting. Noted that policy was developed and work sessions were held re- garding compensation. Stated that the audit addresses that no City salaries exceed 110% of the Governor's salary. Stated that the most recent pay equity report found the City to be in compliance while paying longevity. Reviewed the performance review process for the City Manager and history of salary increases. Explained how members of the public can access in- formation from the City. Keeney: Commented that explanation of a total compensation package goes beyond one number. Noted that an entire meeting was dedicated to how pay is calculated for different em- ployee groups. The City has the complexity of any modern employer and it can be difficult to boil down to a number that is comparable because different cities may do it differently. It can also be much different from a private employer's recognition of experienced employees. As a member of the Council, he takes the responsibility that this is important to a part of the constitu- ency. There is a desire for simplicity and it is hard for outsiders to take the time to understand the complete picture. What is being done to attempt to give complete disclosure is appropriate. DRAFT 07 08 13 City Council Meeting Minutes 5 Encouraged the people receiving the information to be responsible about receiving it and under- standing it. Complimented citizens who take the time to be interested in what is being done. Soukup: Concurred with Keeney's comments. Suggested continuing with postings that break down the definition of elements that make up the salary package so everyone can gain the same understanding. Would rather have people asking what is going on rather than challeng- ing. McGuire: Agreed to publishing the base salary, car allowance and longevity pay and believes that should continue to be done. Hedberg: Concurred with comments made. Commented that the City Manager performance review process is quite involved and includes comparisons with other cities. Commented that the City Manager has reached the top end of the range for salary for his position. Decisions have been made to cap the longevity pay and car allowance, and salary increases for the past several years have been less than those for other employees. Stated the Council is fully en- gaged with contract renewals for the City Manager and believes there is no need to make addi- tional policy decisions at this time. Keeney: Stated that the Council has gone through a considerable amount of effort to respond to the complaints of the Citizens for Accountable Government and suggested that a communica- tion be sent to them querying whether their questions have been answered. Stated that it would be good to have them make a comment about receiving closure. Hedberg: Requested the City Manager to draft such a letter. NEW BUSINESS Consider Approval of Resolution 13-091 Authorizing the Negotiated Sale of $3,240,000 General Obligation Improvement Bonds of 2013 Finance Director Erickson identified projects for which the bonds are requested. Stated that staff secured funding from MnDOT as well as grant funding so the amount of the proposed bond has been reduced from $4.6 million. Commented that some pre-payment of assessment is an- ticipated which will enable repayment of the bond in ten years. Introduced Steve Mattson and Tammy Omdal from Northern Securities, Inc. Mattson commented that interest rates on tax exempt bonds have gone up 1% in the last six weeks, but are still at a historically low current rate of 2.3%. Spoke of elements included in structuring the bonds. Explained the proposed resolution is to approve the concept of selling bonds as the actual date of selling bonds is not known at this point. He searches for a window �of time that will provide the best rating. Another resolution will be approved at the time of sale. Rosow: Suggested language changes to the resolution that assure the CounciPs authority and latitude; and requested what percentage rate will be proposed for the area left blank. Mattson: Suggested that area be completed with 2.75%; and agreed to the proposed language changes. Soukup: Queried about an analysis attached as Exhibit A and whether that was displayed as "zero" because the bonds are being issued in the latter half of the year. Mattson: Affirmed, adding that 64% of the bond issue will be assessed to the benefitting prop- erty and the Welcome Avenue project has already been assessed Erickson: Stated that the Sunset and CR 12 project assessments have not been adopted yet. Mattson: If the City files with the County in 2013, which is anticipated, the County will collect assessments in 2014. There will be no revenue in 2013 so no principal or interest will be paid back on this bond until 2014. Keeney: Clarified that ten-year bonds will be issued, but we will collect assessments over a 20- year period unless property owners prepay. Asked what the assessment interest rate will be. Erickson: The recommended rate for Sunset and CR 12 is 4.25%, which is 2% over the inter- est rate. Keeney: Clarified that the appeal of a 10-year bond is to have a better structure. DRAFT 07 08 13 City Council Meeting Minutes ( Mattson: Replied it is anticipated to cash flow the project with pre-paid assessments as it is typical to reduce the tax levies knowing there will be pre-paid assessment revenue during the first ten years. Keeney: Reiterated that the cash flow will be covered with the assessment; and the income and the 2% difference in the rates makes up the rest. Mattson: Explained that if the bonds were sold over a 20-year period, the net effective rate would be higher. Described it on the charts provided. Keeney: Asked if these are callable instruments. Mattson: Yes, after six years. Omdal: Provided a biography of her experience. MOTION BY MCGUIRE, SECOND BY KEENEY TO APPROVE RESOLUTION 13-091 AP- PROVING THE ISSUANCE OF GENERAL OBLIGATION BONDS, SERIES 2013A. VOTE: Ayes by Hedberg, Keeney, McGuire and Soukup. Councilor Morton was absent. The motion carried. Consider Approval of Ordinance 113-08 Amending Section 1102.1103(3) of the Prior Lake Zoning Ordinance Relating to Uses Permitted by Conditional Use Permit (Motor Vehicle Sales) in the C-2 General Business Use District Community and Economic Development Director Rogness reviewed the proposed changes to the ordinance explaining that the intent is to be business-friendly. Stated the City is trying to be cognizant of a legitimate motor vehicle sales business. Noted that this ordinance would re- tain the ability of the Planning Commission to add more conditions for future individual use re- quests that come before them. MOTION BY SOUKUP, SECOND BY MCGUIRE TO APPROVE ORDINANCE 113-08 AMEND- ING SECTION 1102.1103(3) OF THE PRIOR LAKE ZONING ORDINANCE RELATING TO USES PERMITTED BY CONDITIONAL USE PERMIT (MOTOR VEHICLE SALES) IN THE C-2 GENERAL BUSINESS USE DISTRICT. Soukup: Asked how the stormwater runoff will be managed with increased impervious surFace at the site of a proposed business expansion. Rogness: Replied that would be reviewed with the site plan after an application has been sub- mitted. Staff has met with a survey engineering firm to start those discussions and it will be brought forward in the conditional use permit process. Keeney: Asked about the ordinance references to a showroom with cars in it when the pro- posed revisions seem to be catering to an outdoor sales lot with no showroom, which is the character of both sales businesses in the City. Asked if further revisions are needed to the ordi- nance to address that. Rogness: Replied it is intended to address a sales office and service bay. Keeney: Stated he is fine with allowing sales without a showroom. Asked about the public ad- dress system reference and if it is compatible with other businesses. Rogness: It is staff's recommendation to include that reference. Keeney: Commented that it seems an old-fashioned format for doing business and it does not matter to him if that is not changed. Queried whether the City would still have the ability to ap- ply additional mitigating conditions. Rogness: Affirmed. Noted a public hearing will be conducted. Keeney: Asked whether test driving on residential streets should be discouraged. Boyles: Replied there is intention to have a Conditional Use Permit and if there are violations of that, the business can be brought back to Council for revisions to the permit. Keeney: Referred to the deletion of the existing clause "g" stating that if speeding infractions occurred repeatedly, it would not be a violation of the CUP. Wants to assure if it becomes a DRAFT 07 08 13 City Council Meeting Minutes ] problem, there is something to hold the business accountable for it such as requiring supervised test drives. Rosow: Suggested the proposed ordinance be revised to say test driving shall be in accord- ance with all applicable road and highway laws and regulations. Then, if they are speeding or driving recklessly that would be a violation of the CUP for which the City could bring them back for further conditions. MOTION BY KEENEY, SECOND BY MCGUIRE TO AMEND THE PROPOSED ORDINANCE TO INCLUDE A CLAUSE STATING THAT TEST DRIVING SHAL� BE IN ACCORDANCE WITH ALL APPLICABLE ROAD AND HIGHWAY LAWS AND REGULATIONS. VOTE: Ayes by Hedberg, Keeney, McGuire and Soukup. Councilor Morton was absent. The amendment carried. Hedberg: Queried what is meant by a"minor" street. Rogness: Replied that meant that test drives would be allowed on collector streets but any- thing below a collector street is considered minor. VOTE: Ayes by Hedberg, Keeney, McGuire and Soukup. CouncilorMorton was absent. The motion carried. OTHER BUSINESS Hedberg: Stated that the CR 42 Corridor study results would be discussed at a July 9 meeting in the Parkview Community Room at 6 p.m. Also, the third annual "Rocking on Reeds" event will be held at Reeds Island on July 13 from 2-9 p.m. ADJOURNMENT With no further business brought before the Council, a motion to adjourn was made by Keeney and seconded by Soukup. The motion carried and the meeting adjourned at 9:08 p.m. Frank Boyles, City Manager Charlotte Green, Administrative Assistant DRAFT 07 08 13 City Council Meeting Minutes $