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16200 Eagle &~@!t~~~ fPUNCIL MEETING AGENDA
Prior Lake, MN 55372-1714
DECEMBER 20, 2004
7:00pm
Fire Station No. 1
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122004
Phone 952.447.4230 / Fax 952.447.4245
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ITEMS .REMOV
OM CONSENT. AGENDA:
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A) Recognition of Resigning Councilmember Andrea Blomberg.
B) Recognition of Resigning Recreation Supervisor Chris Esser.
C) Lakefront Park Re-Forestation Management Plan.
D) SMSC Wastewater Treatment Facility (Bill Rudnicki)
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A) Consider Approval of a Resolution Adopting 2005 City of Prior Lake Budgets and Certifying Final
2005 City of Prior Lake Property Tax Levy to Scott County Department of Taxation.
B) Consider Approval of Resolutions Decertifying Tax Increment Districts (1) 1-2 Amoco Gas, and (2) 2-
2 Becker Ice Arena Products.
C) Consider Approval of a Resolution Adopting the Potable Water Emergency Response Plan.
D) Consider Approval of a Resolution Accepting Feasibility Report and Setting Public Hearing Date for
2005 Public Improvement Projects.
E) Consider Approval of a Resolution Approving Winter Maintenance Policy.
F) Consider Approval of a Resolution Authorizing the Mayor and City Manager to Execute the City's
Standard Professional Services Contract for 2005 Lift Station Rehabilitation Project.
G) Consider Approval of a Resolution Authorizing the Acquisition of Street Lights for Village Lake Drive
from Infrasource.
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Consider Approval of a Report Regarding Possible Revisions to: (1) the Height Requirements for
Various Zoning Districts, and (2) Downtown Zoning District to Allow Drive-Thrus Banking.
B) Consider Approval of a Resolution Approving Acquisition of Cushman Haulster utility Vehicle.
C) Consider Approval of a Resolution Authorizing a Community Survey through Decision Resources.
11. OTHER BUSINESS/COUNCILMEMBERREPORTS:
A) Executive Session to Discuss City Manager Performance Evaluation
12. ADJOURNMENT
122004
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
REGULAR COUNCIL MEETING MINUTES
December 6,2004
CALL TO ORDER AND PLEDGE OF ALLEGIANCE:
Present were Mayor Haugen, Councilmembers Blomberg, Petersen, Zieska and LeMair, City Manager Boyles, City Attorney
Pace, Public Works Director Osmundson, Planning Director Kansier, Park Supervisor AI Friedges, Communications
Coordinator Oster, and Assistant to the City Manager Meyer.
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. Items to be considered as part of the
Council's regular agenda may not be addressed at the Public Forum. Topics of discussion are also restricted to
City governmental topics rather than private or political agendas. The City Council will not take formal action on
issues presented during the Public Forum.
Bovles: Reviewed the procedure for the public forum.
No persons were present to address the Council.
APPROVAL OF AGENDA:
Zieska: Suggested that the public hearing order be changed to move Item A to the end.
MOTION BY ZIESKA, SECOND BY LEMAIR, TO APPROVE THE AGENDA AS AMENDED.
VOTE: Ayes by Haugen, Blomberg, Petersen, Zieska and LeMair, the motion carried.
APPROVAL OF MEETING MINUTES
MOTION BY PETERSEN, SECOND BY BLOMBERG, TO APPROVE THE NOVEMBER 15, 2004 REGULAR MEETING
MINUTES AS SUBMITTED.
VOTE: Ayes by Haugen, Blomberg, Petersen and LeMair, the motion carried. Councilmember Zieska abstained because
he was not present at the meeting.
CONSENT AGENDA:
(A) Consider Approval of Invoices to be Paid - (With an amendment deleting a line item of $83,000 to Infrasource on page
12).
(B) Consider Approval of Resolution 04-172 Authorizing Dispersal of an SMSC Contribution to the Cities of Savage and
Shakopee for the Tri-City Response Team Equipment Purchases.
(C) Consider Approval of Resolution 04-173 Electing the Non-Waiver of Statutory Municipal Tort Liability Limits and
Declining Excess Liability Insurance Coverage.
(D) Consider Approval of Resolution 04-174 Approving Acquisition of an Easement from Bealmake Partners, LLC for City
Utilities and Authorizing the Mayor and City Manager to Execute the Documents.
(E) Consider Approving of (1) Temporary 3.2 Liquor License for the Church of S1. Michael, and (2) a Temporary
Consumption and Display Permit for the Church of S1. Michael.
(F) Consider Approval of a Right of Entry I Waiver of Trespass and Authorizing the Mayor and City Manager to Execute the
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www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
City Council Meeting Minutes
December 6, 2004
(G) Consider Approval of Resolution 04-175 Initiating the Vacation of a 10-Foot Sanitary Sewer Easement on the Property
Located at Lots 7 and 8, Maplewood Townsite (3470 Sycamore Trail S~ Mader)
(H) Consider Approval of Resolution 04-176 Authorizing the Purchase of Anti-Icing Production and Application Equipment
through the Minnesota State Cooperative Purchasing Program.
(I) Consider Approval of Resolution 04-177 Authorizing the Purchase and Installation of Chain Link Fence by the Fence
Company, Inc. at the Future Site of the Water Treatment Plant in the Brooksville Hills Addition.
(J) Consider Approval of Building Permit Monthly Report.
Bovles: Reviewed the Consent Agenda items proposed.
MOTION BY PETERSEN, SECOND BY LEMAIR, TO APPROVE THE CONSENT AGENDA AS SUBMITTED.
VOTE: Ayes by Haugen, Petersen, Blomberg, Zieska and LeMair, the motion carried.
ITEMS REMOVED FROM THE CONSENT AGENDA: NONE.
PUBLIC HEARINGS:
Item C - Consider Approval of a Resolution Denying an Appeal to a Variance for Front Yard Setback for 4851
Rutledge Street.
Moore: Reviewed the agenda item in connection with the staff report.
Mayor Haugen declared the public hearing open and asked those interested
in providing input to approach the podium. -
Donna Scherer (4854 Rutledge Street): Concerned with the flooding on the property which has been consistent over the
past 20 years. Believed the site is impractical to build upon and destroys the natural area. Further concerned with the
driveway location, and the integrity of the neighborhood if a structure of this size is built.
Mitch Husnik (4851 Rutledge Street, Petitioner): Discussed the front yard setbacks for the property across the street at 38
feet. His proposed house is 42 feet from the curb line, even though it does not meet the set back from the front lot line.
Believes the proposed house does meet the integrity of the neighborhood. Asked the Council to consider including the 20
feet boulevard as part of the calculation.
Hauaen: Asked Mr. Husnik to clarify his statement that this is a rubber stamp process.
Husnik: Stated that he feels like the process has not heard him and that the City has not applied practical sense to the
ordinance.
Hauaen: Clarified the variance process that Mr. Husnik has gone through, the instances where input has been sought both
at the Planning Commission and City Council level, and the diligence the individual members put into their decision-making
process which often includes talking to neighbors, consulting the City staff, and visiting the site. Advised that nine hardship
criteria established by state statute must be met.
Doua Miller (4822 Rutledge): Believed that the new driveway will destroy a lot of trees on the property, that there will be an
adverse effect with respect to runoff, and that the site topography is a challenge for a structure of this type.
Zieska: Asked how big Mr. Miller's house is.
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Miller: 2500 sq. ft. each on two levels, with a two bay garage and a setback of 48 feet.
MOTION BY LEMAIR, SECOND BY ZIESKA TO CLOSE THE PUBLIC HEARING.
VOTE: Ayes by Haugen, Blomberg, Petersen, Zieska and LeMair, the motion carried.
Blombera: Asked if the setback calculation is determined from the lot line, or the curb line.
Moore: For consistency, all setback calculations are from the lot line.
Blombera: Asked if a property owner can build on a site despite the natural amenities on the property, such as trees and
wildlife.
Pace: Confirmed, provided they meet the restrictions of the ordinance.
Zieska: Believes the house can be constructed within the ordinance guidelines and will meet the needs and integrity of the
neighborhood. Supported the Planning Commission decision.
LeMair: Agreed with Councilmember Zieska. Asked if there is any circumstance in which the City would vacate the 20 foot
area between the front lot line and the curb.
Steve Albrecht: Advised that the City does not have a utility easement to vacate in that area.
Hauaen: Repeated that the property owner has a right to build on the site, but that the variance does not meet the hardship
criteria. Supported the Planning Commission decision.
MOTION BY LEMAIR, SECOND BY PETERSEN, TO APPROVE RESOLUTION 04.178 SUPPORTING THE PLANNING
COMMISSION DECISION TO DENY THE VARIANCE FOR FRONT YARD SETBACK FOR PROPERTY DESCRIBED AS
TRACT A, RLS 39 (Husnik).
Blombera: Commented that she appreciates that people are concerned about the trees and natural wildlife in the area, but
that those concerns are not reason for denial of a variance. Property owners have a right to develop property as they see fit
as long as they meet the zoning regulations.
VOTE: Ayes by Haugen, Blomberg, Petersen, Zieska and LeMair, the motion carried.
Truth-in- Taxation Hearing for Proposed 2005 City Budgets
Bovles: Reviewed the proposed 2005 Budget as required by state statute.
Mayor Haugen declared the public hearing open and invited the public to provide input.
No persons were present to address the Council.
MOTION BY LEMAIR, SECOND BY ZIESKA TO CLOSE THE PUBLIC HEARING.
VOTE: Ayes by Haugen, Blomberg, Petersen, Zieska and LeMair, the motion carried.
Blombera: Commented what a great place Prior Lake is to live. She is very proud of the progress in the community, of the
effort to plan for the future, and of the minimal impact upon her own tax statement.
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December 6,2004
Petersen: Advised that the budgeting process is a challenged faced by a City Council every single year. Believed the staff
has worked very hard to provide quality services in a fiscally responsible manner.
LeMair: Agreed with the comments of his fellow Councilmembers. He is glad to be a part of it.
Hauaen: Commented how important it is to have the 2020 Vision and Strategic Plan in place and that it be a document
responsive to providing quality services in a responsible manner. It gives us a road map and helps us plan for what the
community wants Prior Lake to become. Particularly pleased to see dollars added to the Building Fund and Contingency
Fund. We are essentially saving for a down payment. This is a positive step. No additional action is required at this time.
The Council will consider approval of the proposed 2005 budget at its December 20, 2004 regular meeting.
Consider Approval of a Resolution Authorizing (1) a Proposed Modification to the Development Program and Plan
for Development District No.3, (2) the Modification of Tax Increment Financing District 3-1 (Creekside Commons
Senior Rental Project), and (3) Directing the City Staff and Attorney to Prepare a TIF Development Agreement on
Behalf of the City.
Sullivan: Reviewed the agenda item in connection with the staff report.
Zieska: Asked if the TIF district was modified, there could potentially be 54 individual owners.
Bovles: Clarified that under previous scenarios, the developer had requested maximum flexibility. The developer has now
agreed to a maximum ownership of three individuals.
Mayor Haugen declared the public hearing open and invited the public to provide input.
Harold Jesh (2055 Hyde Court, Sauk Rapids, MN): Confirmed that the ownership being requested is for a maximum of
three owners.
Zieska: Asked for clarification of the proposed modification to the ownership.
Jesh: Advised that the ownership would be divided into three entities individually held by either John Messenbrink, Larry
Gensmer, or a combination of the two.
CindY Geis (Scott County Auditor): Advised that the County opposed the modification to the TIF District if the basis were to
divide the CIC into 54 individual units. The administration and monitoring of the public financing district is cumbersome.
Even under three ownerships, the County is apprehensive. Only districts that truly have merit should hold public financing
support. In this case, the County does not feel long-term benefit to the public. Down the road, even under only three
ownership entities, the units could likely be sold off one by one. There is nothing that would stop the owners today from
dividing the parcel into a 1/3 undivided interest and add value to their portfolios.
Bovles: Asked if the proposal assumes 54 individual units.
Stacie Kvilvana (Ehlers & Associates): Confirmed.
MOTION BY LEMAIR, SECOND BY PETERSEN, TO CLOSE THE PUBLIC HEARING AT 8:29PM.
VOTE: Ayes by Haugen, Blomberg, Petersen, Zieska and LeMair, the motion carried.
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Pace: Commented that in the meetings that she participated in it was indicated that in no manner would the CIC be able to
be divided into 54 individual units. The notice that was sent out was to modify to 54 individual units.
Zieska: Asked if normally TIF districts are established for the benefit of both the City and the developer or owner.
Sullivan: Confirmed.
Zieska: Saw absolutely no benefit to modifying the district under this scenario just because it is inconvenient for the
developer to comply with the standards of the agreement.
LeMair: Wanted to support a good local developer and customer. Would support the modification if it were restricted to
three owners who could not sell the units. Did not support a project that would create 54 individual units.
Hauaen: Did not believe that this project met the intent or purpose of creating a TIF district. Agreed with Councilmember
Zieska in that there does not appear to be benefit. Recommended that the item go back to the developer and that the City
should not have to be involved.
Blombera: Commented that if the solution is as simple as proposed by Ms. Geis, why have we wasted so much time
getting here.
Zieska: Believes denial of the modification also serves another purpose in not creating a precedent.
leMair: Disagreed in that each instance needs to be considered independently based upon a certain set of circumstances.
Zieska: Disagreed because with TIF we are talking about public dollars.
Blombera: Suggested that this other proposed solution be thoroughly considered before the Council considers the item.
Pace: Commented that it is not the City's responsibility to undertake estate planning or business planning for a private
business.
MOTION BY ZIESKA, SECOND BY PETERSEN, TO NOT MAKE ANY MODIFICATION TO THIS DISTRICT AT THIS
TIME.
Blombera: Commented that the Developer has a lot of money invested and she does not want to see the project fail.
Petersen: Commented that he would at least like to see the same information or request made by each of the parties. We
keep getting different stories.
Stacie Kvilvana (Ehlers): Commented that the development agreement dictates that the 54 units must remain rental. At
any time if there is a default, the TIF district would fall into de-certification. Reviewed that this is a public hearing and the
Council has several options.
Bovles: Asked if it is not true that in effect, the development agreement and ownership documents are at odds.
Kvilvana: Confirmed.
LeMair: Advised that at any point in time, the developer can forego the TIF assistance and sell the units.
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Kvilvana: Confirmed.
Jesh: Commented that he was under the impression that three entity ownership would be the discussion. It seems to have
become more complicated.
Zieska: Clarified the motion and that the intent is to advise the developer that the City intends that the original TIF
agreement and development agreement not be amended.
VOTE: Ayes by Haugen, Petersen and Zieska, Nay by Blomberg and LeMair, the motion carried.
The Council took a brief recess.
PRESENTATIONS:
Prior Lake Post Office Grand Opening - December 8, 2004 (10am)
Bovles: Corrected that the Grand Opening date is Tuesday, December 14,2004, and introduced Postmaster Gail Ozment.
Gail Ozment (Prior Lake Postmaster): Commented that this is a long time coming and on Tuesday, December 14th there
will be an open house where Mayor Haugen, the District Manager for the Postal Service and other dignitaries will be
present. She is hoping to show off the work areas as well. Gave examples that -- moving from a 5200 sq. foot building to
17, 551 sq. ft. , 493 post office boxes to 845 boxes, parcel lockers are now available, 14 customer parking spaces to 34
customer spaces, originally 6 Prior Lake routes to now 21 existing routes. 1980 revenue was $225,000 and is now $2
million. Invited everyone to attend.
Hauaen: Congratulated Gail on a great new facility.
Perron's Sui Lago Associated E Press Excalibur A ward
Todd Perron (Owner & Che~: Described the award and noted that they are the first restaurant in Minnesota to receive the
award. The restaurant considers its patrons our guests with personal attention. The food is his department, but the
atmosphere and customer service is Brad's area.
Brad Thomoson (General Manager): Noted the significance of the award and also noted several other press items that the
restaurant has received. It is a family atmosphere.
Perron: Advised that the restaurant will also be a featured restaurant in Minnesota St. Paul Magazine and Minnesota
Restaurant Monthly.
Hauaen: Noted that not only are Prior Lake residents responding to your efforts, but the restaurant is instrumental in
advertising our Prior Lake community.
Progress in Prior Lake
Sullivan: Review the presentation he gave at a recent Chamber seminar.
Hauaen: Asked how the presentation is being utilized.
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Sullivan: Advised that the presentation is running on the City's cable television channel periodically. It is available as a tool
to encourage businesses to come to Prior Lake, and the City Manager and Mr. Sullivan also gave the presentation at a
Chamber function.
Consider Approval of Police Station / City Hall Construction Project Site Selection Process
O'Rourke: Provided a history of this project and the space needs for public facilities. Noted that the space needs study was
recently updated and indicated a 48,000 sq. foot facility was needed to facilitate the City's ability to provide quality services
into the future. Also reviewed the previous sites analyzed, the current site evaluation, and reviewed the process to date
including owner's representative and architect contracts.
Bovles: Reviewed the timeline and process for site selection, noting that final site selection is targeted for City Council
consideration at its January 18, 2005 meeting.
Blombera: Asked if the site selection can be completed in December.
Bovles: Not without giving up some of the public input process. There just isn't enough time.
Zieska: Suggested that Council member Blomberg come back at the January 18th meeting to provide her input.
Michael Cox (Wold Architects): Reviewed the Guiding Principles for the project including Fostering Partnerships,
Encourage Downtown Redevelopment, Provide High-Quality Services, Fiscal Responsibility, Serve as a Gateway, and A
Wonderful Place to Call Home.
Zieska: Suggested that the experts thoroughly review all of the options for sites so that we are not foolish in the long run.
Hauaen: Commented that it will be a challenge to construct a building that reflects small town values, but that is vitally
important.
Cox: Commented that in designing the building an essential component is that the building is yours, not ours, and that you
have some ownership. Also reviewed the three sites.
leMair: Suggested that the Klingberg/Staber site also be evaluated.
By affirmation, the Council members all concurred with the timeline, process, guiding principles,
and sites with the addition of the Klingberg/Staber property on West Avenue.
OLD BUSINESS:
Consider Approval of a Resolution Approving a Preliminary Plat to be Known as Stemmer Ridge.
Kansier: Reviewed the agenda item in connection with the staff report.
leMair: Asked if the plat was changed because of public input.
Kansier: Confirmed that the public input at the public hearing showed a preference for single family homes in part of the
project, and the developer reviewed and responded to the needs of the neighbors.
leMair: Excited about the project and would support.
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Zieska: Agreed and complimented the partnership between Arcon and Tollefson.
MOTION BY PETERSEN, SECOND BY LEMAIR, APPROVING RESOLUTION 04-179 APPROVING A PRELIMINARY
PAL T TO BE KNOWN AS STEMMER RIDGE.
VOTE: Ayes by Haugen, Blomberg, Petersen, Zieska and LeMair, the motion carried.
Consider Approval of a Resolution Approving a Letter of Understanding for the CSAH 12 Improvements between
the City of Prior Lake, Scott County and Arcon Development (City Project 03-34).
Albrecht: Reviewed the agenda item in connection with the staff report.
leMair: Believed this is an excellent opportunity for the community.
MOTION BY ZIESKA, SECOND BY LEMAIR, TO APPROVE RESOLUTION 04-180 APPROVING A LETTER OF
UNDERSTANDING FOR THE CSAH 12 IMPROVEMENTS BETWEEN THE CITY OF PRIOR LAKE, SCOTT COUNTY,
AND ARCON DEVELOPMENT (CITY PROJECT 03-34).
VOTE: Ayes by Haugen, Blomberg, Petersen, Zieska and LeMair, the motion carried.
Consider Approval of a Resolution Approving a Premise Permit for Lawful Gambling for Baseball Association #191.
Bovles: Reviewed the agenda item in connection with the staff report.
leMair: Will support as long as the proceeds are going to a Prior Lake group. The process makes sense.
Hauaen: Abstained from the vote because his wife would have direct benefit and involvement with the Laker Athletic
Boosters in her position as the School Activities Director.
MOTION BY LEMAIR, SECOND BY ZIESKA, TO APPROVE RESOLUTION 04-181 APPROVING A PREMISE PERMIT
FOR LAWFUL GAMBLING FOR BASEBALL ASSOCIATION #191.
VOTE: Ayes by Blomberg, Petersen, Zieska and LeMair, the motion carried.
NEW BUSINESS
Consider Approval of a Resolution Approving a Request for Proposal Authorizing Solicitation of Proposals for
Banking Services.
TESCHNER: Reviewed the agenda item in connection with the staff report.
Petersen: Asked if there is any expense to the City in changing banks.
Teschner: Advised that there are potentially some administrative expenses. The City would like to see the financial
institution absorb some of those costs.
Zieska: Believed the staff will carefully consider the benefit.
Teschner: Even though changing banks is no small task, four years ago there was significant benefit. This time there is a
much smaller dollar amount that can have an impact. There will likely be a larger weight given to customer service.
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MOTION BY ZIESKA, SECOND BY LEMAIR, TO APPROVE RESOLUTION 04-182 APPROVE A REQUEST FOR
PROPOSAL AUTHORIZING SOLICITATION OF PROPOSALS FOR BANKING SERVICES.
VOTE: Ayes by Haugen, Petersen, Blomberg, Zieska and LeMair, the motion carried.
Consider Approval of a Resolution Approving a Comprehensive Plan Amendment for Jeffers Pond from R-HD to C-
CC (24 Acres).
Kansier: Reviewed the agenda item in connection with the staff report.
leMair: Asked what controls the City has in the future for what commercial uses are included in that area.
Kansier: Explained that this will be a planned unit development, so there will be input sought from the City Council and the
public as part of that process.
leMair: Commented that he is in favor of reducing residential density, but also wanted to protect the investment in our
Downtown environment and those businesses.
Councilmembers Zieska, Petersen and Blombera agreed.
Hauaen: Excited to see the first part of this Jeffers Pond development come together. Congratulated Paul Oberg of the
Jeffers Estate on his participation in the process. Likes the commercial component because it reduces density. This
commercial target is consistent with the objective to create commercial pockets throughout the community.
MOTION BY PETERSEN, SECOND BY BLOMBERG, TO APPROVE RESOLUTION 04-183 APPROVING A COMP PLAN
AMENDMENT FOR JEFFERS POND FROM R-HD TO C-CC (24 Acres).
VOTE: Ayes by Haugen, Blomberg, Petersen, Zieska and LeMair, the motion carried.
Consider Approval of a Resolution Approving a Pension Increase for the Prior Lake Firefighters Relief and Pension
Association.
Teschner: Reviewed the agenda item in connection with the staff report.
leMair: Commented that he is glad to do it because the contributions made by our firefighters are irreplaceable.
Hauaen: Advised that this benefit is one of the few
Teschner: The contribution of the City is stable and there is very little impact on the taxpayer.
MOTION BY LEMAIR, SECOND BY BLOMBERG, TO APPROVE RESOLUTION 04-184 RESCINDING RESOLUTION 04-
130 AND APPROVING A NEW PENSION INCREASE FOR THE PRIOR LAKE FIREFIGHTERS RELIEF AND PENSION
ASSOCIATION.
VOTE: Ayes by Haugen, Petersen, Blomberg and LeMair, the motion carried. Councilmember Zieska abstained because he
is a member of the Fire Department.
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OTHER BUSINESS
Hauaen: Commented that Downtown Dazzle was an outstanding event and well-attended. The highlight was Santa and
Mrs. Claus coming down Main Avenue in a sleigh pulled by live reindeer. Also formally invited Councilmember Blomberg to
attend and participate in the site selection process for the City Hall / Police Station in the month of January even though she
will be resigning her City Council seat effective December 31 st.
Zieska: Asked that an Executive Session be added to the December 20th regular meeting to discuss the City Manager1s
performance review.
Frank Boyles, City Manager
With no other comments from Councilmembers, a motion to adjourn was made and
10:45pm.
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