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V. Prior Lake, MN 55372 SPECIAL CITY COUNCIL MEETING MINUTES
"'. NEW" September 16, 2014
CALL TO ORDER
The meeting was called to order at 4:45 p.m. Present were Mayor Hedberg, Councilors Keeney, McGuire, Morton
and Soukup, City Manager Boyles, City Attorney Rosow, City Finance Director Erickson, City Engineer /
Inspections Director Poppler, and Executive Assistant Dull.
SPECIAL MEETING DISCUSSION ITEM
Consider Approval of a Resolution Affirming Option 5B for the 150th Street / TH 13 Improvement
Project and Adopting a Cost Sharing Agreement with the City of Savage
Hedberg: Recapped the process and actions to date between the City of Savage,City of Prior Lake,and MnDOT.
Poppler: Stated the Council previously agreed upon option 5B because it was the better long-term solution,was
geometrically superior, and served the larger populous. Noted the City of Savage approved option 5B with the
Cost Sharing Agreement at their September 15, 2014 meeting. Reviewed the proposed Cost Sharing Agreement
and specific provisions including: 1) the City of Prior Lake would pay the difference between the costs of option
6D and option 5B, a difference of$857,000; 2) any costs above and beyond the estimated cost would be split
evenly between the two cities and any costs under the estimated would also be an equal savings to the two cities;
3) acquisition costs exceeding the estimated costs would be paid for by the City of Prior Lake; and 4) if MnDOT
does not confirm by September 24, 2014 that the previously allocated funds are secured, the agreement is
rendered null and void.
Hedberg: Suggested Councilors restate reasons for option 5B acknowledging this option was more costly.
McGuire: Commented that 5B felt safer and allowed for better access to the high school and therefore he
supported option 5B. Was concerned with additional costs but stated the safety of residents and students
outweighed the price.Asked whether there was any estimate on what it may cost Savage to improve their portion
of Zinran in the future and whether the costs would be similar if Savage decided to move forward.
Kotila: Explained based on the 6D option which was a signal at Zinran, the cost of reconstructing Zinran from
150th St. to Hwy 13 was in excess of$800,000 and that because the signal would be constructed at 150th St.
instead, the cost to reconstruct Zinran in the future would likely be about 2/3 of that number.
McGuire: Stated that in light of those estimated costs, Savage will have to pay a significant amount in the future
to reconstruct Zinran which would put their total costs for the area very similar to Prior Lake's cost under option
5B with the agreement.
Soukup: Advised she did not agree with the Zinran option for numerous reasons including safety as the primary
reason, not a viable option for long-term traffic flow, and additional money would have to be spent later to
reconstruct the area. Commented that she didn't like feeling that the Council had to decide quickly without long-
range planning. Noted there were still some areas that needed to be reviewed further with regard to pedestrian
and bicycle traffic. 150th St. intersection makes more sense with safety being first and it provides access to both
cities as well as provides a wider street and a curve that will likely cause traffic to slow down. Stated that because
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Savage may incur similar costs to reconstruct Zinran in the future, the additional cost to Prior Lake now seemed
justified as it was a primary road through the city, it was a benefit to the city, and safety is addressed. Supported
option 5B with the Cost Sharing Agreement and requested that all safety considerations and discussions be held
with the church and others involved.
Keeney: Noted the church supported the 150th St. concept and asked whether there have been any further
assurances or agreements with the church to determine an amount. Also inquired whether there were any
provisions in the agreement providing a cap or out if the Council is unhappy with the acquisition costs.
Boyles: Commented that those discussions would be premature at this point without a project but that the City
Attorney's office has acquired both church and residential property in Savage and that the estimated acquisition
costs were comparable but no agreements were in place at this time. Explained there was a subsequent
cooperative agreement which will define process, responsibility, and will address those other provisions which
would be presented to the Council for approval at a future date.
Morton: Stated she supported 150th St. for several reasons already enumerated by Councilors and added that
with traffic at Aspen Academy, skew of the road, and surrounding neighborhood support, the 150th St, was a
better option long-term from the 20-30 year vision. Commented she was not receptive to the additional cost
burden on the City of Prior Lake because of a benefit that both cities share equally but was mindful that a decision
needed to be made. Noted emails received from people stating their discontent with the time taken to make a
decision and the additional cost burden. But, 150th is a better choice and decision for Prior Lake in the long run
as far as infrastructure and road network. Echoed Councilor Soukup's comments to be mindful of the negotiations
as part of the property acquisition and requested there be other opportunities to opt out if costs come in
significantly over the estimates. Inquired whether there was a deadline to spend the MnDOT dollars in the event
acquisitions are delayed by the property owners.
Poppler: Advised that to receive the MnDOT funds, the project would need to be "let" before the end of June
2015 which included sending out for bids, receiving bids, and awarding a contract.
Rosow: Added that all property acquisitions would also need to be completed.
Hedberg: Inquired whether this work could be accomplished by the June 30, 2015 deadline.
Kotila: Confirmed the calendar and timeline allowed the objectives to be met prior to the deadline.
Hedberg: Stated he supported 150th over Zinran because it better served the needs of Prior Lake residents, was
safer, provided for a longer life and was a better long-term decision, and experts have said 150th was preferred
but Zinran would meet MnDOT standards. Reviewed previously discussed options and additional work.Thanked
Barry Stock and other City of Savage staff as well as Frank Boyles and Larry Poppler for working vigorously over
the last week to come up with the proposed agreement. Reminded Councilors that the City of Savage approved
option 5B with the Cost Sharing Agreement on a 5-0 vote.
Keeney:Stated the cost sharing agreement appeared a bit more skewed that it should be perceived and reviewed
the numbers presented. Commented that Prior Lake residents were served significantly by 150th St. option and
in some sense, it wasn't as unfair as it appeared but that the situation was unfortunate for Prior Lake tax payers.
Supported moving forward with option 513 with the cost sharing agreement even though it meant more cost and
noted his discontent with the additional cost.
09 16 14 Special City Council Meeting Minutes 2
MOTION BY MCGUIRE, SECOND BY SOUKUP, TO APPROVE RESOLUTION NO. 14-139 REAFFIRMING
OPTION 5B FOR THE HIGHWAY 13/150TH STREET IMPROVEMENTS AND ADOPTING A COST SHARING
AGREEMENT WITH THE CITY OF SAVAGE,
VOTE Hedberg Keeney McGuire Morton Soukup
Aye
Nay ❑ ❑ ❑ ❑ ❑
Abstain ❑ ❑ ❑ ❑ ❑
Absent ❑ ❑ ❑ ❑ ❑
The motion carried.
ADJOURNMENT
With no further business brought before the Council, a motion to adjourn was made by SOUKUP, seconded by
KEENEY. The motion carried and the meeting adjourned at 5:15 p.m.
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Frank 1 ity Manager
09 16 14 Special City Council Meeting Minutes 3