HomeMy WebLinkAbout11 14 16 City Council Minutes
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4646 Dakota Street SE
Prior Lake, MN 55372
REGULAR CITY COUNCIL MEETING MINUTES
November 14, 2016
CALL TO ORDER
The meeting was called to order at 7:00 p.m. Present were Mayor Hedberg, Councilors Keeney,
Morton, McGuire and Thompson, City Manager Boyles, City Attorney Schwarzhoff, Assistant City
Manager Olson, Finance Director Uram, Public Works / Natural Resources Director Gehler, City
Engineer / Inspections Director Poppler, Police Chief Elliott, Fire Chief Hartman, Planner Matzke,
Recreation Coordinator Barstad and Executive Assistant Schroeder.
PUBLIC FORUM
City Manager Boyles reviewed the process for the public forum and explained that items sched-
uled for public hearing or items for which a public hearing has been held but no final action taken,
are not eligible for discussion on the public forum.
Mark Coffman, 15901 Sunfish Trail SE: Stated in 1981 the City of Prior Lake and the residents
of the Sunfish Bay addition discussed and agreed that a road needed to be rebuilt by dedicating a
portion of the platted roadway to the city. Noted that Bass street is two and a half feet on his prop-
erty. Added the City Attorney talked about Minnesota statute 160.05 which summarizes that in six
years a street is considered city property except platted streets. Stated since Bass Street is a plat-
ted street and it is on his property, he requested a discussion on this issue.
Curt Hennes, 17286 Sunset Trail SW: Thanked those who assisted with the leaf cleanup of
6,000 pounds; he was grateful for the city’s assistance hauling it away.
Schwarzhoff: At Mayor Hedberg’s request, responded to Coffman’s comments. Stated Minnesota
Statute 160.05 provides that any street that is maintained and used for six years by the road au-
thority becomes a public street. Added that this is similar what one would have privately for ad-
verse possession. The legislature has determined that if you believe there is an encroachment
you have to deal with it within six years. Stated if it is not dealt with, it is deemed as public prop-
erty. Explained the part Coffman pointed out regarding platted streets not being included is true;
but the courts have determined that this provision does not apply to the actual platted street but to
portions outside of the used street. Concluded that in this case the platted and used street is pub-
lic property and any use outside of that street is public property as well since it has been used by
the city for over six years.
APPROVAL OF AGENDA
MOTION BY MORTON, SECOND BY THOMPSON TO APPROVE THE AGENDA
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
The motion carried.
APPROVAL OF CITY COUNCIL MEETING MINUTES
MOTION BY THOMPSON, SECOND BY MCGUIRE TO APPROVE THE MINUTES OF THE OC-
TOBER 24, 2016 REGULAR MEETING AS PRESENTED
Draft 11 14 16 City Council Meeting Minutes 2
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☐ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☒ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
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 September 2016 Treasurers Report
C. Consider Approval of a Resolution 16-142 Canvassing the Returns of the City of Prior
Lake 2016 Municipal Election
D. Consider Approval of a Resolution 16-143 Adopting the Scott County All Hazards, Multi-
jurisdiction Mitigation Plan
E. Consider Approval of Ordinance Revising Section 110 of the Prior Lake City Code Related
to Disposal of Property and a Resolution Approving a Summary of the Ordinance and Au-
thorizing its Publication
F. Consider Approval of Ordinances Revising the Following Sections of the City Code:
Section 307 Related to Public and Private Gatherings, and a Resolution Approving
a Summary of the Ordinance and Authorizing its Publication
Section 316 Related to Community Events
Section 605 Related to Nuisance Noise
G. Consider Approval of a Resolution 16-144 Approving the Sentencing to Service (STS)
Joint Powers Agreement for 2017 and Authorizing the Mayor and City Manager to Execute
the Same
H. Consider Approval of a Resolution 16-145 Authorizing a Joint Powers Agreement for As-
sessment of the City of Prior Lake for Assessment Years 2018 and 2019
I. Consider Approval of a Resolution 16-154 Approving a Joint Powers Agreement for
School Resource Officer for the Period 2016-2019 with ISD 719 Prior Lake Savage Area
Schools
J. Consider Approval of a Resolution 16-146 Accepting Bids and Authorizing Execution of
the City’s Standard Construction Contract for the Purchase and Installation of Lighting
Controls for Ponds Park Athletic Fields
K. Consider Approval of a Resolution 16-147 Ordering the Preparation of a Feasibility Study
for 2017 Overlay Project
L. Consider Approval of a Resolution Authorizing a Community Solar Garden and Authorizing
the Mayor and City manager to Execute the Same on Behalf of the City of Prior Lake
M. Consider Approval of a Resolution 16-148 Approving the Selection of a Consultant to
Complete the Land Use and Housing Plans as part of the 2040 Comprehensive Plan Up-
date
N. Consider Approval of an Ordinance Amendment to Section 1107.2100 (Tree Preservation)
of the Prior Lake Zoning Ordinance
MOTION BY MCGUIRE, SECOND BY THOMPSON TO APPROVE THE CONSENT AGENDA
WITH THE REMOVAL OF ITEM 5E, 5F, 5L AND 5N
Keeney: Noted on 5H the costs is higher than previous years which is unfortunate. Stated on 5I
this is a valuable item.
Draft 11 14 16 City Council Meeting Minutes 3
The motion carried.
PRESENTATIONS
No Presentations Scheduled
PUBLIC HEARINGS
7A Assessment Hearing for Demolition Costs for 15947 Sunfish Trail
City Engineer / Inspections Director Poppler presented on this topic dated November 14,
2016
Hedberg: Stated the district court approved the city expenses. Asked if that approval is re-
quired.
Schwarzhoff: Responded that the process is very specific and district court approval is one of
the steps.
Keeney: Asked if the costs listed under city staff costs are related to the demolition or the regu-
latory process.
Poppler: Replied that the city staff cost is for the administration of the process to remove the
building this year, it did not include anything from years past; the demolition was performed by a
private company.
MOTION BY MCGUIRE, SECOND BY THOMPSON TO OPEN THE PUBLIC HEARING AT
7:17 P.M.
The motion carried.
Mark Coffman, 15901 Sunfish Trail SE: Stated the City has been after this house since 2012,
they have exhausted every criminal path that they could which he has paid his dues on. Added
now the City is suing a resident senior in court regarding this property. Explained the City Coun-
cil declared that the house needed to demolished. Stated he applied for a demolition permit but
was denied because he needed a $5,000 bond. Added the City did not advertise for a bid on the
demolition; the administrative warrant to break into his house was executed late. Stated the gar-
age was never entered and was grandfathered in by the Prior Lake Planning Commission that
states any building built before 2009 is grandfathered in. Explained the City sent a letter to his
wife because he was in jail, that she had seven days to remove everything. Stated the City de-
molished a perfectly good garage and information was held from the court about the condition of
the garage. Noted a structure over on County Road 21 is covered in trees but is still standing.
Added he was charged $6,000 for asbestos removal that took 2 ½ hours. Asked for a sample of
the asbestos in his building but there was none. Stated he was not informed and charged
$2,000 to cap the well which he wanted for geothermal use. Concluded that there were two
driveways that went into the property but now the one on Sunfish Trail has been covered by sod
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
Draft 11 14 16 City Council Meeting Minutes 4
which he is paying for.
MOTION BY THOMPSON, SECOND BY MORTON TO CLOSE THE PUBLIC HEARING AT
7:30 P.M.
The motion carried.
Boyles: Explained he will restate the question for staff or the attorney to answer; there was no
asbestos on the site.
Poppler: Noted an asbestos review was done on the property by a private company and that
review identified asbestos was present.
Boyles: The City received no bids for the demolition.
Schwarzhoff: Stated if a bid is under $100,000 the City is not required to request bids but there
were quotes received for this demolition.
Boyles: The City did not cooperate in anyway.
Schwarzhoff: Stated Coffman had over three years to take care of the property himself; the City
was cooperating that is why this process has taken so long.
Boyles: The City capped the well without Coffman’s permission.
Schwarzhoff: Stated in order to receive a demolition permit, capping the well was part of the
court order process. Added there are very limited uses to have a private well within the City and
in order to do so you must get a permit from the MPCA; since the property has been vacant for
six years and was not connected to anything a MPCA permit would have had to of been issued
to maintain the well.
Boyles: Code Enforcement Officer Stefanisko was not allowed on the property.
Schwarzhoff: Stated the City tried to comply with the demands from the property owners even
though the City is not required to do so; Coffman requested Stefanisko not be on the property
so another staff was sent.
Boyles: The City removed driveways from the property.
Poppler: Stated the driveways were gravel which were not maintained because they had weeds
and grass growing; the City did not remove any gravel and put in an erosion control blanket in
and seeded the area.
Boyles: Mr. Coffman was threatened with arrest.
Schwarzhoff: Stated she was not there but Mr. Coffman repeatedly interfered with the work so
police were on site while staff was on the property for safety reasons.
Boyles: The City is telling inaccurate stories about the property to third parties.
Schwarzhoff: Stated she cannot speak to what staff is saying but there has been no reason
that this property is unbuildable.
Hedberg: Restated the comment of the garage being in perfectly good condition and did not
need to be torn down.
Poppler: Responded that the garage was in like condition as the house with facia falling off,
holes in the siding, moss was growing on the roof and shingles were curling up.
Hedberg: Noted that Mr. Coffman has left the chambers and opened the dialog up to counci-
lors.
Linda Coffman, 15901 Sunfish Trail: Stated the first letter sent to her was automatically sent
back to the courthouse so when she received the letter from the City stating she only had seven
days to remove everything. Noted in the letter it stated the City stated mold in the garage but the
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
Draft 11 14 16 City Council Meeting Minutes 5
garage was locked so she wanted to know how the City even knew that. Stated they are not
done with Stefanisko because he has come to their property ten times after he was told not to.
Hedberg: Stated Mrs. Coffman should have spoken at the public hearing.
Morton: Stated even if there is only a little bit of asbestos on the property, a specialist has to
come take care of the removal.
Poppler: Responded correct even a low percentage needs to go through the special removal
process; they had eight samples from this property and asbestos was present in six of those
samples.
Keeney: Asked if the garage was included in the city council findings and the court order?
Schwarzhoff: Replied yes it was laid out for the judge with pictures of both structures which
both Mr. and Mrs. Coffman attended.
Keeney: Asked for details on the permit Coffman applied for.
Schwarzhoff: Stated Coffman applied for a permit at least once and a permit requires a deposit
to assure proper property restoration which he never paid so the permit was not issued.
Keeney: Asked if a personal check for the deposit would have been sufficient. Noted when he
applied for a demolition the City never cashed the check he wrote.
Schwarzhoff: Responded yes that would be sufficient.
MOTION BY MORTON, SECOND BY KEENEY TO APPROVE RESOLUTION 16-149 ADOPT-
ING THE ASSESSMENT ROLL FOR DEMOLITION COSTS AT 15947 SUNFISH TRAIL
The motion carried.
Hedberg: Stated that demolition is one of the most difficult actions that the city council is called
upon to perform and it is taken very seriously.
7B Public Hearing to Consider Approval of a Resolution Approving an On-Sale Intoxicat-
ing Liquor License for Iron Range BBQ
City Manager Boyles presented on this topic dated November 14, 2016
McGuire: Asked for confirmation that the city has an option of assessing the $3,300 and placing
it on the property. Schwarzhoff: Responded that the council can assess the $300+/- sewer and
water charges to the property but generally the city is not allowed to assess fines onto the prop-
erty.
Keeney: Asked for confirmation that the previous land owners who were also the previous busi-
ness operators and liquor license holders still own the property and are leasing it to the new
business.
Boyles: Responded that is correct.
MOTION BY MORTON, SECOND BY MCGUIRE TO OPEN THE PUBLIC HEARING AT 7:49
P.M.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☐ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Draft 11 14 16 City Council Meeting Minutes 6
The motion carried.
Brian Fondurulia, 604 Hipp Drive, Jordan: Stated he took over the place two months ago and
since has learned a lot about the property. Noted the hours are going to be cut and mentioned
this will not be a drinking establishment but primarily a restaurant that offers liquor. Stated the
building owner conditioned his lease on applying for a full liquor license.
Morton: Asked for further clarification for the plans of the building.
Fondurulia: Responded that he opened on the 24th for lunch and dinner. Estimates food ser-
vices will run until 8:00 pm, bar service will run until 10:00 pm. and the weekend food service
will run until 9:00 pm with bar service until 11:00 pm.
Keeney: Asked if there was a change in staff.
Fondurulia: Answered that four staff members decided to stay on.
Hedberg: Stated he has talked to others about the newly established restaurant who are enthu-
siastic for the restaurant.
Fondurulia: Added he has talked to other business owners in the area who were worried it
would stay the same but he stated he is going to have some changes.
MOTION BY MCGUIRE, SECOND BY THOMPSON TO CLOSE THE PUBLIC HEARING AT
7:55 P.M.
The motion carried.
MOTION BY MCGUIRE, SECOND BY MORTON TO APPROVE RESOLUTION 16-150 AP-
PROVING AN ON-SALE INTOXICATING LIQUOR LICENSE FOR IRON RANGE BBQ
Keeney: Asked if there is a reason the business owner has to do the full liquor license.
Fondurulia: Stated the owners told him if he does not get the full license, they may not be able
to get it in the future.
Boyles: State statute does regulate the number of full liquor licenses for the city but he believes
to be under the limit but he would need to confirm. In any case this is a net zero in terms of the
number of licenses issued by the city.
Keeney: W elcomed the new business.
The motion carried.
OLD BUSINESS
No Old Business Scheduled
Absent ☐ ☐ ☐ ☐ ☐
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
Draft 11 14 16 City Council Meeting Minutes 7
NEW BUSINESS
9A Consider Approval of a Resolution Annexing Property from Spring Lake Township
into the City of Prior Lake by Orderly Annexation
City Manager Boyles presented on this topic dated November 14, 2016
MOTION BY MORTON, SECOND BY THOMPSON TO APPROVE RESOLUTION 16-151 AN-
NEXING PROPERTY FROM SPRING LAKE TOWNSHIP INTO THE CITY OF PRIOR LAKE BY
ORDERLY ANNEXATION
Morton: Asked if properties that fall off of the annexation map are permanently removed or can
they be added back on at a later time.
Boyles: Responded that the areas can be added back on as long as the township agrees.
Noted the township is a great collaborator with the City. Added he was contacted by phone and
e-mail by the north land owners of 8.1 want to develop and support the annexation of this prop-
erty.
Morton: Asked the township board to provide the logic behind their requests as referenced in
the staff report.
Kathy Nielsen, Springlake Township Clerk: Stated the township is asking for area 10.3 to be
deferred to save the residents some money since the annexation will double their taxes but will
not be hooked up to city services for another 20 years. Noted the township agrees that it is im-
portant for area 8.1 regarding the investment through Stemmer Ridge and it is important to the
growth of the city. Added the southern portion of area 8.1 will have services but there will be a
time delay to the north part which is a reason they have asked for the delay. Noted the township
has offered to draft an amendment to split section 8.1.
McGuire: Stated the property taxes as a whole will not double but only the township to city por-
tion which is about 1/3 of the entire bill.
Hedberg: Asked if it is possible to serve the northern section of 8.1 by extending Belmont Ave-
nue.
Poppler: Responded there is a limit to the amount of sewer that Belmont Avenue can carry; at
this point it would have to come from County Road 12 and County Road 17.
Hedberg: Stated it would be the property owner’s responsibility to extend the sewer line creat-
ing additional costs for them.
Poppler: Answered yes there is a way but it would be costly.
Keeney: Stated the City is going to end up with a situation where there is septic and well within
the city but not connected. Asked what is the timeframe for the connection and how large are
the properties.
Poppler: Responded the City is likely not interested in doing a project in that area without a pe-
tition and until that street is ready for improvement. Added the properties are larger and some
owners may want to develop the land with additional units.
Thompson: Stated the letter received from the owners of property 8.1 does not state there is a
developer but he is ready to develop. Added the people in the southern portion of 8.1 who are
possibly going to be annexed in, say they do not need city services for 20 years, are there any
other charges they would see.
Boyles: Responded city zoning ordinance and fees would be applicable since they will now be
part of the city.
Hedberg: Added section 10.3 is rural and 8.1 is agricultural with larger properties and the land
will be worth much more.
Thompson: Stated she would like to accommodate the township. Moved an amendment to not
annex 10.3 for two more years and not annex the northern portion of 8.1. Motion died for lack of
a second.
Draft 11 14 16 City Council Meeting Minutes 8
AMENDMENT BY MORTON, SECOND BY THOMPSON TO APPROVE ANNEXING PROP-
ERTY FROM SPRING LAKE TOWNSHIP INTO THE CITY OF PRIOR LAKE BY ORDERLY
ANNEXATION EXCLUDING SECTION 10.3
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
The motion carried.
MAIN MOTION
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
The motion carried.
9B Consider Approval of a Resolution Approving the Bylaws and Pension Increase for
the Prior Lake Volunteer Firefighter Relief Association
City Manager Boyles presented on this topic dated November 14, 2016
MOTION BY MCGUIRE, SECOND BY THOMPSON TO APPROVE RESOLUTION 16-152 AP-
PROVING THE BYLAWS AND PENSION INCREASE FOR THE PRIOR LAKE VOLUNTEER
FIREFIGHTER RELIEF ASSOCIATION
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
The motion carried.
9C Consider Approval of an Appointment of a City Councilor to Represent the City at the
Metropolitan Council Legislative Reform Bill Work Sessions
City Manager Boyles presented on this topic dated November 14, 2016
MOTION BY MORTON, SECOND BY MCGUIRE TO APPOINT COUNCILOR THOMPSON TO
REPRESENT THE CITY AT THE METROPOLITAN COUNCIL LEGISLATIVE REFORM BILL
WORK SESSIONS
Hedberg: Requested an amendment to appoint Thompson.
Morton: Stated she supports Thompson today but the new council may want to discuss next
year.
McGuire: Added he supports the amendment but wants to make sure Thompson is presenting
the council as a whole and brings back updates.
Hedberg: Noted he agrees information needs to be brought back to the council.
VOTE Hedberg Keeney McGuire Morton Thompson
Draft 11 14 16 City Council Meeting Minutes 9
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
The motion carried.
ITEMS REMOVED FROM THE CONSENT AGENDA
5E Consider Approval of Ordinance Revising Section 110 of the Prior Lake City Code Re-
lated to Disposal of Property and a Resolution Approving a Summary of the Ordinance and
Authorizing its Publication
Keeney: Stated he wants to make sure there is something in place for an accountability oversight;
suggested that property disposal be reported as a consent agenda item.
Schwarzhoff: Believed that is already in the reports council receives every month and staff is fol-
lowing state statute.
Uram: Stated items show up as revenue but council does not see specific line items. Added pa-
rameters need to be set.
Keeney: Stated the list should have anything that is a capital item.
Morton: Added fixed assets and items with a material value should be listed to prove a good
check and balance and to assure no collusion.
Uram: Stated the city is audited annually and anything with any significance is tested.
Morton: Explained she does not believe an audit is testing the sale cost and thinks it is safe to
have a report.
Boyles: Asked for an example for what council is looking for.
Keeney: Stated he is specifically referring to vehicles and land.
MOTION BY KEENEY, SECOND BY MORTON APPROVAL OF ORDINANCE 116-21 REVISING
SECTION 110 OF THE PRIOR LAKE CITY CODE RELATED TO DISPOSAL OF PROPERTY
AND A RESOLUTION 16-153 APPROVING A SUMMARY OF THE ORDINANCE AND AUTHOR-
IZING ITS PUBLICATION W ITH THE DIRECTION TO STAFF TO PROVIDE A LIST OF CAPITAL
ITEMS LISTED IN A REPORT
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
The motion carried.
5F Consider Approval of Ordinances Revising the Following Sections of the City Code:
Section 307 Related to Public and Private Gatherings, and a Resolution Approving
a Summary of the Ordinance and Authorizing its Publication
Section 316 Related to Community Events
Section 605 Related to Nuisance Noise
Keeney: Stated there were more changes than what he believed the council talked about for in-
stance the limit to the number of events.
Schwarzhoff: Stated the ordinances were rewritten to all match. Asked Barstad if there is a limit
on the number of events.
Barstad: Responded there is no limit.
Draft 11 14 16 City Council Meeting Minutes 10
Keeney: Stated he is concerned that some people may take advantage of these changes such as
Charlie’s on Prior.
Schwarzhoff: Responded that Charlie’s on Prior has its own ordinance which does provide for
limitations.
Keeney: Stated they still may be able to use these ordinances to their advantage along with other
companies.
MOTION BY KEENEY, SECOND BY MORTON FOR THIS TO BE TABLED AND BROUGHT
BACK AT A FUTURE MEETING
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
The motion carried.
5L Consider Approval of a Resolution Authorizing a Community Solar Garden and Author-
izing the Mayor and City manager to Execute the Same on Behalf of the City of Prior Lake
Morton: Asked what the subscription fee that the City will be paying to SoCore in the anticipation
in getting money back from Xcel; what is the timing difference from when we actually have to pay
to when we receive.
Gehler: Stated we do not pay SoCore until we receive the credit from Xcel; the contract allows for
an annual audit.
Hedberg: Asked how the ARR increase has been determined.
Gehler: Responded going back to 2000 the from ARR has risen by 3% on average so that is what
was used in the contract.
Hedberg: Stated to Morton that this has nothing to do with interest rates.
Morton: Stated she understands that but looking at the future value of money to apply such a
huge rate of return does not make sense to her intuitively.
Thompson: Asked how long SoCore has been in business
Gehler: Answered that SoCore has been in business since 2009.
Uram: Explained that SoCore is a subsidiary of Edison International which has been in existence
since 1896 more formally since 1909; it is one of the largest utility companies in the United States.
Thompson: Asked how long have they been selling solar energy in this area.
Uram: Stated he was uncertain as this is new to the Midwest but in other parts of the country
there are numerous installations.
Thompson: Asked how many subscribers do they have.
Gehler: Answered that each facility is required to have five subscribers and no one subscriber
can have more than 40% at that one site. Noted there are only four facilities in Minnesota that are
operational but there are 400 in the construction phase.
Thompson: Asked if any private businesses are doing this.
Uram: Responded it is hard to tell by looking at the list of companies in Minnesota that are doing
this because there are LLCs and subsidiaries it is hard to tell.
Thompson: Asked if the City is able to get out of the 25-year program.
Gehler: Stated there are clauses in the agreement to exit by having someone pick up the remain-
ing payments or the company may terminate.
Schwarzhoff: Explained this is a legislative program and as long as that program is run by the
Public Utilities Commission (PUC) the City is probable fine as there are other cities signed up as
well.
Draft 11 14 16 City Council Meeting Minutes 11
Thompson: Stated she is not in favor of this because she wants to see how it goes.
Uram: Explained the city has had discussions to wait and if we wait these opportunities will pass.
Added the historical 3% increase has averaged over time and we ran a sensitivity analysis by
plugging it in at zero; at a zero percent for 25 years the city still makes money on this. Added the
City Staff also sent this to our financial advisor who has many cities asking the same questions;
they have someone in house who concur this is the best deal for Prior Lake.
Morton: Questioned if the City does not use all of the energy in our subscription what happens
with the deficit.
Uram: Explained if we use more energy, the City will still receive the credit because we can only
purchase so much energy in this program. Asked Schwarzhoff to clarify if the contract states any-
thing regarding the deficit.
Schwarzhoff: Answered that this is a state program so the theory is that will not happen.
Keeney: Asked what happens 5-10 years from now when people find a better way to make solar
energy.
Gehler: Responded that the City will be under a contract with them to pay for that energy.
Schwarzhoff: Reminded them that this is a state program, so the PUC is requiring Xcel to provide
the credit. Added it is not as simple as a private business saying they can get a cheater rate
somewhere else; it is much more regulated than that.
Morton: Asked if staff explored a smaller increment because she is open to a shorter timeframe.
Schwarzhoff: Stated the deal is standard across the board.
Gehler: Added most of the agreements out there are for 25 years but with SoCore there was a
15, 20 or 25-year option which we had internal conversations and determined the 25 year was the
best option.
MOTION BY MORTON, SECOND BY THOMPSON TO DENY A RESOLUTION AUTHORIZING
A COMMUNITY SOLAR GARDEN AND AUTHORIZING THE MAYOR AND CITY MANAGER TO
EXECUTE THE SAME ON BEHALF OF THE CITY OF PRIOR LAKE
McGuire: Stated he thinks this is a very good concept, he knows of three maybe five that are be-
ing construction right now. Requested more information to be brought back and this should be
brought back to a future meeting.
Gehler: Stated there are a number of facilities going up and we have to do one with the county or
adjacent counties; there are only about 13 facilities left that the City would qualify which will be go-
ing fast.
Keeney: Asked how does this make financial sense for the developers.
Gehler: Noted there are incentives from the Federal government for the developers.
Uram: Stated there have been discussions on the tax credits and these companies are making a
profit somehow which is most likely multi-faceted.
Keeney: Added if Xcel had a better way to make energy they would already be doing this.
Schwarzhoff: Noted the state decided the state needed more solar energy; this is a publicly sub-
sidized program that the subscribers are financing the building of a solar garden which we will pay
for over the next 25 years in exchange Xcel will give the subscribers a credit.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
The motion carried.
Draft 11 14 16 City Council Meeting Minutes 12
5N Consider Approval of an Ordinance Amendment to Section 1107.2100 (Tree Preserva-
tion) of the Prior Lake Zoning Ordinance
Keeney: Stated he has a concern on the replacement requirement to include under-story trees,
shrubs and accents instead of full trees and the option to allow replacement on offsite areas.
Matzke: Explained the point of this change is to avoid homeowners from having to remove trees
that realistically should not have been added back to the property because of the ordinance.
Added this change will allow for more sustainable long term vegetation.
Keeney: Asked if there is a spot for slightly bigger trees to be put in so the City does not end up
with a lot of little trees all over.
Matzke: Stated the ordinance already has guidelines on what size trees have to be planted.
Added smaller trees tend to grow at a more rapid pace verses a 6-8” tree since it is not shocked
during translation. Added the ordinance allows development to grow and updated from the land-
scaping differences from 2006 when this ordinance was last updated.
Hedberg: Stated staff and the Planning Commission has worked hard on this effort so he does
not want to scrap this item.
Keeney: Explained he does not like this direction and wants to see this come back to encourage
preservation of larger older trees and feels like this was developer requested.
Schwarzhoff: Stated it does not do any good for a developer to put in trees that a homeowner
takes down and there is a different portion of the ordinance dedicated to tree preservation.
Thompson: Questioned if developers really plant trees and then homeowner takes down the
trees.
Matzke: Responded yes because it is the property owners right to remove trees and we want to
make sure the longevity of the tree makes sense.
Morton: Wished there was another avenue to provide an option.
Matzke: Stated the ordinance is at discretion of staff and the developer or property owner to ap-
peal this to the Planning Commission.
Keeney: Stated it sounds like this addresses the need of a replacement scenario but does not ful-
fill the preservation side of things.
Matzke: Added preserving trees in an area that has been cleared often results in trees not being
strong enough for the wind loads.
Keeney: Stated he thinks people want wooded areas and not just random trees all over the place.
Schwarzhoff: Noted these plans go before the Planning Commission and then to the City Coun-
cil.
MOTION BY KEENEY, SECOND BY MCGUIRE TO APPROVE ORDINANCE 116-22 AMEND-
MENT TO SECTION 1107.2100 (TREE PRESERVATION) OF THE PRIOR LAKE ZONING OR-
DINANCE
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
The motion carried.
MOTION BY KEENEY, SECOND BY MCGUIRE TO DIRECT STAFF TO EXPLORE IMPROVED
INCENTIVES FOR TREE PRESERVATION
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☒ ☒ ☒ ☒
Draft 11 14 16 City Council Meeting Minutes 13
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
The motion carried.
OTHER BUSINESS / COUNCILMEMBER REPORTS
Keeney: Questioned if he should attend the SCALE 50x30 Steering Committee workshop on
November 30th or if another member should attend for the transition.
Hedberg: Stated Keeney should attend.
ADJOURNMENT
With no further business brought before the Council, a motion was made by Morton and seconded
by Keeney to adjourn. The motion carried and the meeting adjourned at 9:41 p.m.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
The motion carried.
________________________________
Frank Boyles, City Manager