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HomeMy WebLinkAboutDraft 07 22 13 City Council Minutes o � rRro� � � v � 4646 Dakota Street SE Prior Lake, MN 55372 '�rf� REGULAR CITY COUNCIL MEETING MINUTES July 22, 2013 CALL TO ORDER The meeting was called to order at 7:00 p.m. Present were Mayor Hedberg, Councilors Keen- ey, McGuire, Morton and Soukup, City Manager Boyles, City Attorney Rosow, City Engineer / Inspections Director Poppler, Public Works / Natural Resources Director Gehler, Finance Direc- tor Erickson, Economic and Development Director Rogness, Fire Chief Hartman, Assistant City Manager Meyer and Administrative Assistant Green. PUBLIC FORUM The Public Forum is intended to afford the public an opportunity to address concerns to the City Council. The Public Forum will be no longer than 30 minutes in length and each presenter will have no more than ten (10) minutes to speak. Topics of discussion are restricted to City 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 Consent Agenda 5J, Consider Approval of a Motion to Declare a Va- cancy on the Economic Development Authority (EDA), be added to the agenda. MOTION BY SOUKUP, SECOND BY MORTON TO APPROVE THE AGENDA AS MODIFIED. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. APPROVAL OF MEETING MINUTES MOTION BY SOUKUP, SECOND BY MCGUIRE TO APPROVE THE MINUTES OF THE JULY 8, 2013 CITY COUNCIL MEETING AS PRESENTED. VOTE: Ayes by Hedberg, Keeney, McGuire and Soukup. Morton abstained due to her absence at the meeting. 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 Police Department Report G. Consider Approval of Resolution 13-093 Accepting Donations and Grants to the City Dur- ing the Second Quarter of 2013 Phone 952.447.9800 / Fa�c 952.447.4245 / wtivw.cityofpriorlake.com H. Consider Approval of Resolution 13-094 Accepting Quotes and Authorizing the Purchase of Lift Station Components for the Sunset Avenue Improvement Project (City Project #13- 011) I. Consider Approval of Resolution 13-095 Approving a Temporary On-sale Intoxicating Liquor License for the Prior Lake Chamber of Commerce J. Consider Approval of a Motion to Declare a Vacancy on the Economic Development Au- thority (EDA) Keeney: Requested that 5G, Consider Approval of Resolution 13-093 Accepting Donations and Grants to the City during the Second Quarter of 2013, be removed from the Consent Agen- da in order to recognize grants and donations publicly. Hedberg: Requested that 5C, Consider Approval of Building Permit Summary Report, be re- moved from the Consent Agenda for discussion. MOTION BY MCGUIRE, SECOND BY MORTON TO APPROVE THE CONSENT AGENDA AS MODIFIED. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. Keeney: Cited donations and grants that were enumerated on the grants and donations report. Thanked the people and organizations who contributed to the City. Hedberg: Noted there were 100 residential permits applied for as of the end of June and asked about the year-to-date status of permits filed and under consideration. Poppler: Replied that another 13 permits were applied for in July, seven are ready to be picked up and eight are in review. Another 150 general permits such as remodels, permits, etc. were received. Hedberg: Queried the estimate for year end. Poppler: Replied there could be 200 residential permits and 2,500 general permits. Hedberg: Asked the number of permits that were planned for in the budget. Poppler: 150 residential permits. MOTION BY KEENEY, SECOND BY MORTON TO APPROVE 5G, RESOLUTION 13-093 AC- CEPTING DONATIONS AND GRANTS TO THE CITY DURING THE SECOND QUARTER OF 2013; AND 5C, BUILDING PERMIT SUMMARY REPORT. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. PRESENTATIONS No presentation was scheduled. PUBLIC HEARINGS Public Hearing to Consider Approval of an On-Sale Intoxicating and Sunday Liquor Li- cense for the Artisan Coffee Bistro City Manager Boyles reported that the applicant currently holds a beer and wine license and that past compliance checks have been successful. Stated that the Artisan Coffee Bistro is ex- panding into neighboring space. Noted that their background check is in order. Morton: Asked when the license will be effective. Erickson: Upon Council approval. Stated that fees were calculated from July 1. MOTION BY KEENEY, SECOND BY MORTON TO OPEN THE PUBLIC HEARING. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried and the public hearing opened at 7:13 p.m. DRAFT 07 22 13 City Council Meeting Minutes 2 Comments: 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 7:14 p.m. MOTION BY MORTON, SECOND BY SOUKUP TO APPROVE RESOLUTION 13-096 AP- PROVING AN ON-SALE INTOXICATING AND SUNDAY LIQUOR LICENSE AND AN EXTEN- SION OF THE LICENSED PREMISE FOR THE ARTISAN COFFEE BISTRO. McGuire: Commented that they have done a great job on the expansion. Keeney: Asked if the licensure is awarded to a person or the business. Boyles: Replied that if inembership of the corporation ever changes, they would need to reap- ply for the liquor license. Owners are Ben Peters and Nannette Zetzman. Rosow: Added that it is standard for a background check to be done on principals of the entity that owns and operates the business, which would be the owners. Commented that the license is in the name of the corporation. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. OLD BUSINESS Consider Approval of a Resolution Providing for the Issuance and Sale of $3,240,000 General Obligation Bonds; Series 2013A • Finance Director Erickson reported that the bonds were sold. Stated that the Moody's rating on the bond is AA2. Tammy Omdal, Northland Securities, was present. Omdal stated the bond sale was done at a rate of 2.22% which was substantially less than the 2.75% maximum the city council previously approved. Noted that five other cities were in the market that day and Lakeville was the only one with a similar rate. MOTION BY MCGUIRE, SECOND BY SOUKUP TO APPROVE RESOLUTION 13-092 PROVIDING FOR THE ISSUANCE AND SALE OF $3,240,000 GENERAL OBLIGATION BONDS, SERIES 2013A, PLEDGING SPECIAL ASSESSMENTS FOR THE SECURITY THEREOF AND LEVYING A TAX FOR THE PAYMENT THEREOF. Keeney: Asked about the yield scale of various cities and discounts. Omdal: Replied that a discount is the price that is paid to Northland Securities for the marketing of the bonds. Staff asked for a yield analysis to be presented in order to compare with other cities. Keeney: Queried the advisor fee vs. a discount and whether the costs are a difference of bond rating or style of sale. Omdal: Lakeville had a public sale so there was a financial advisory service used. In a negoti- ated sale, there is a financial advisor fee. Keeney: Queried the value of switching to public sale vs. getting the bond rating improved. Omdal: Replied that when using a trigger resolution, the seller can wait to make the sale until the market improves; whereas with a public sale, the seller must accept whatever the rates are on the date they go to market. The trigger resolution allows the City to choose when to go to market. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. DRAFT 07 22 13 City Council Meeting Minutes 3 RECESS Mayor Hedberg called a recess at 7:30 p.m. to allow time for completion of signatures on bond sale documents. RECONVENE The meeting reconvened at 7:31 p.m. Consider Approval of Three Resolutions Pertaining to the Ridgemont / Main Avenue / TH 13 Improvement Project (City Project #13-001) 1. Accepting Bids and Awarding the City's Standardized Construction Contract 2. Entering into a Cooperative Agreement with MnDOT 3. Entering into a Cooperative Agreement with Scott County City Engineer / Inspections Director Poppler stated that four bids were received and the low bid was from Chard Tile and Excavating. Stated that bids were higher than engineering esti- mates and reviewed the differences in paving, excavation, traffic control, striping and aggregate costs. Noted that 2013 is proving to be a challenging construction year due to weather delays which may have caused some bidders to not participate. Reviewed project costs and funding sources. Discussed the State Aid system and the impact of higher bids on the State Aid allot- ment to the City. Described the timeline for the project if awarded. Commented that WSB rep- resentative Don Sterna was in attendance. Comments: Morton: Asked if some of the additional cost is due to trying to complete the construction this year and whether it includes overtime costs. Poppler: Replied it may have been the low number of bidders and lack of competition. • Morton: Queried whether using future State Aid funding is a better option that tax levy or water quality funding. Poppler: Replied that if State Aid funds are locked in for this project, it would not be available for future years. Morton: Commented that legislature may choose to not fund future State Aid and it would be better to use those funds now while they exist. Poppler: Suggested we may want to keep some State Aid available for future projects though it makes sense to use some of it now. Keeney: Asked if the City would have to repay any State Aid dollars if future State Aid monies were used now and the program discontinued in the future. Suggested traffic control costs might be reduced if Main Avenue is not kept open during construction. Sterna: Commented that there was a 25-30% reduction in construction prices during the years of economic downturn, but the current market has increased prices on many elements of the project. Listed prices that increased from last year. Believes the prices experienced last year will not occur again. Stated the contractor has expressed willingness to work with the City on staging if savings can be realized. Keeney: Asked if the parking lot and trails are included with this project; and whether there is any element of the project that could be scaled back until pricing is better or a design could be made with a lesser amount of excavation. Sterna: Replied that the City standard is a two-foot sand subbase below the roadway, which could be changed to a fabric to gain the same structural strength. There is some reduction in drain tile that could be considered. Not much to be done with the amount of excavating that needs to be done because of contouring and pond excavation. Not much to be done to reduce pavement width or area. Keeney: Asked for the City Engineer's recommendation. DRAFT 07 22 13 City Council Meeting Minutes 4 Poppler: Replied that the schedule is set to complete the project this year and there are many projects scheduled for next year. There is no guarantee that better pricing could be achieved next year. Morton: Commented that the bonds have already been sold for this project. Poppler: Replied that an early spring construction timeline would avoid any penalty. McGuire: Commented that the City received four qualified bids. Believes there is greater chance of this project costing more next year if the economy strengthens. Favors cutting some costs if we can, but not the parking lot or trail, and completing the project this year. Hedberg: Asked about the striping line item that is in error. Poppler: Replied that will have to be deleted from the contract. It was a clerical error, but it is in the official bid and there are processes to follow to take it out. Hedberg: Stated his reluctance to authorize a bid with a$54,000 error. Poppler: Responded the City has the right to add or delete items from the bid. Hedberg: Asked if the work is completed later as a change order. Poppler: Affirmed that it could be a change order. Or, the City could pay the subcontractor di- rectly or do the work with City staff. Hedberg: Questioned whether other items for cost savings should be defined. Concurred with McGuire that the project should be moved forward now as there are many projects scheduled for next year; and, this intersection has been a problem for many years. Believes the risks of costs increasing next year are greater than possibility of it being less. Favors approving the pro- ject with the deletion of the striping item. Keeney: Favors deleting the item that is in error and pay someone to do the striping. Ex- pressed concern that the estimation of this project was off and whether future projects in the Capital Improvement Program (CIP) may be off also. Poppler: Replied that a different methodology is used for estimating CIP projects and those � projections are estimated on the high side with an inflation factor. This project estimation was based on a feasibility report that was done three to four years ago. Keeney: In this case, the project was half a million more than the CIP and that is concerning regarding the CIP. Agrees the project needs to be done and favors proceeding but wants to step back and reconsider other project estimations in the CIP. Soukup: Stated that costs were trending down since 2005, but the economy has been chang- ing in the past 6-12 months. Suggested that be taken into account moving forward. Hedberg: Noted that a$600,000 grant from MnDOT resulting in the tax levy impact is lower than anticipated in the CIP. Concurred with Morton that the risk should be taken with State Aid funds rather than water quality funds. Asked if Rosow has comments about deleting the striping item from bid. Rosow: Replied that material changes cannot be made to competitive bid. Cannot award a bid for a lesser amount, but it can be awarded for the bid amount and then items deleted that were in error. Recommended awarding the bid as submitted and directing staff to proceed to take the steps necessary to bring striping costs into reasonable range. Morton: Concurred that the project should move forward. Asked if there is a way to include a caveat to negotiate the striping costs to the original expectation. Rosow: Replied that direction to negotiate to a cap can be provided. MOTION BY MCGUIRE, SECOND BY SOUKUP TO APPROVE RESOLUTION 13-097 AP- PROVING A COOPERATIVE AGREEMENT WITH MNDOT FOR THE RIDGEMONT / MAIN / TH 13 IMPROVEMENT PROJECT (CITY PROJECT #13-001). VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. MOTION BY MORTON, SECOND BY KEENEY TO APPROVE RESOLUTION 13-098 AP- PROVING A COOPERATIVE AGREEMENT WITH SCOTT COUNTY FOR THE RIDGEMONT / MAIN / TH 13 IMPROVEMENT PROJECT (CITY PROJECT #13-001). DRAFT 07 22 13 City Council Meeting Minutes S VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. MOTION BY MORTON, SECOND BY MCGUIRE TO APPROVE RESOLUTION 13-099 AC- CEPTING BIDS AND AWARDING THE CITY'S STANDARDIZED CONSTRUCTION CON- TRACT FOR STREET AND UTILITY CONSTRUCTION FOR THE RIDGEMONT / MAIN / TH 13 CONSTRUCTION PROJECT (CITY PROJECT#13-001); WITH SUBSEQUENT DELETION OF THE STRIPING LINE ITEM AND NEGOTIATION TO A MAXIMUM COST OF $540 FOR STRIPING. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. NEW BUSINESS Consider Approval of a Resolution Approving a Major Amendment to the Heritage Land- ing Final PUD, and a Resolution Approving a Combined Preliminary and Final Plat for Heritage Landing 2" Addition Community and Economic Development Director Rogness described the location of Herit- age Landing and reviewed site details. The original plat from 2004 was portrayed along with the proposed preliminary and final plat. Reviewed conceptual model renderings. Noted that earlier agreements did not specify exterior design, but there are Association documents that regulate design of units. Representatives of the developer and builder are in the audience. MOTION BY MORTON, SECOND BY MCGUIRE TO APPROVE RESOLUTION 13-100 AP- PROVING AN AMENDMENT TO THE FINAL PLAN FOR THE PLANNED UNIT DEVELOP- MENT (PUD) KNOWN AS HERITAGE LANDING. • Soukup: Asked if there will be a reduced tax base for the City with five rather than seven • homes. Rogness: Speculated that the detached units will have higher value than attached units would have had. Does not believe the tax base will be significantly reduced. Soukup: Asked if the Council will be taking action that would affect the homeowner's associa- tion fees. Rogness: Replied that this action would impact the number of units, but it is up to the home- owner's association to determine the fee structure and ultimate fee revenue. Keeney: Commented that the City is not involved with the homeowner's association, but ap- proves the PUD with the lots and what buildings will be going on the lots. Noted that the con- cept of uniformity is often attractive to buyers and he would like to understand how well these units will fit in with remainder of neighborhood. Believes that is a way for the City to give reas- surances to neighbors in a PUD. Noted that the concept homes appear to be similar; perhaps a little larger. Does not want existing residents to experience significant change from compati- bility with existing homes. Morton: Concurred with Keeney's remarks and expressed hesitance to change the PUD from attached to detached homes. Hedberg: Expressed his understanding that the homeowner's association had a vote regarding the number of parcels and acknowledging that the developer controls some of the parcels. In reviewing renderings, he feels heartened that the units will look like they were designed at the same time as the earlier homes. The homes to be constructed befinreen attached units will have shared driveways so will have similar appearance. Noted that lots have been sitting vacant for a number of years, so having new homes constructed will add to tax revenue. Favors moving forward with this project. Believes it wi�l be good to complete the neighborhood. Rogness: Noted that an amendment of a PUD requires four of five votes to approve. Keeney: Concurs that development should be completed. If this were being measured as a new PUD, the open area and concessions are going in a direction the City would consider fa- vorable. There seems to be opposition by the neighbors, but noted he is not clear on what DRAFT 07 22 13 City Council Meeting Minutes 6 would be desired by them to complete this development. Favors moving forward with the pro- ject. Morton: Clarified that other variances such as setbacks, etc. are not being sought. Rogness: Replied it is not deviating from originally approved variances. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. MOTION BY MCGUIRE, SECOND BY KEENEY TO APPROVE RESOLUTION 13-101 AP- PROVING THE COMBINED PRELIMINARY AND FINAL PLAT OF HERITAGE LANDING 2ND ADDITION AND SETTING FORTH CONDITIONS TO BE MET PRIOR TO RELEASE OF THE FINAL PLAT. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. Consider Approval of a Resolution Approving a Cooperative Agreement between the City of Prior Lake, D.R. Horton, Inc. Minnesota, and Terrance Hanson for the Stockpiling of Clean Fill on the Hickory Shores South Site Community and Economic Development Director Rogness reported that the City is pro- cessing a preliminary plat and Planned Unit Development contract for Hickory Shores South. The developer has advised the City that additional fill is needed and there is excess fill at Wel- come Avenue as well as another D. R. Horton site. Agreement proposes that fill be moved to Hickory Shores South. MOTION BY MCGUIRE, SECOND BY MORTON TO APPROVE RESOLUTION 13-102 AP- PROVING A COOPERATIVE AGREEMENT BETWEEN THE CITY OF PRIOR LAKE, D.R. - HORTON, INC. MINNESOTA, AND TERRANCE HANSON FOR THE STOCKPILING OF � CLEAN FILL ON THE HICKORY SHORES SOUTH SITE. Keeney: Asked if hauling the fill will impact any existing streets. Rogness: Replied that the agreement requires that a plan be submitted for truck hauling routes that has to be approved by the City Engineer. Keeney: Asked what will happen if a PUD is not approved as proposed in the agreement. Rogness: Replied the intent is to state that if the plat not approved, the next step would be to apply for and receive a Conditional Use Permit (CUP). If a CUP is not approved, there would be additional discussion about next steps. Keeney: Stated that if it is not appropriate to issue a CUP, fill may have to be removed. Asked if the City will be obliged to supply certain amount of clean fill if this agreement is approved. Rogness: Replied that no one is obligated to certain amounts of fill. Keeney: Asked if this will be a discount or change order on already approved contract. Gehler: Replied that the City will receive a deduction for pond excavation based upon the amount of fill. Keeney: Asked if the fill is given at no cost to Hickory Shores. Gehler: Replied that the contractor must dispose of soil as part of the Welcome Avenue con- tract and Chard is working with D.R. Horton on this agreement. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. OTHER BUSINESS Keeney: Suggested that a future agenda item include a discussion about processes for real estate transactions to avoid issues that arose with the property between West and Duluth Ave- nues. DRAFf 07 22 13 City Council Meeting Minutes 7 MOTION BY KEENEY, SECOND BY MCGUIRE TO BRING A REPORT CONCERNING PRO- CESSES AND RECOMMENDED CHANGES TO PROCESSES REGARDING REAL ESTATE TRANSACTIONS AND COUNTY PRACTICES RELATED TO THAT WITHIN 90 DAYS. VOTE: Ayes by Hedberg, Keeney, McGuire, Morton and Soukup. The motion carried. Hedberg: Commented that the lake level is 903.93 and lakeshore homeowners are concerned with lake levels. Listed efforts under way to assist homeowners with lakeshore concerns. Asked boaters to cooperate. 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 8:50 p.m. Frank Boyles, City Manager Charlotte Green, Administrative Assistant DRAFT 07 22 13 City Council Meeting Minutes 8