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HomeMy WebLinkAboutAgenda & Minutes 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 REGULAR COUNCIL MEETING AGENDA January 3, 2006 7:00 pm Fire Station No.1 1. CALL TO ORDER and PLEDGE OF ALLEGIANCE: 2. OATH OF OFFICE: Office Holder Mayor Jack Haugen Cheri Dornbush Warren Erickson Steve Millar Administered By Kyle and Andy Haugen David James Dornbush Heidi Burns Jennifer and James O'Meara 3. 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. 4. APPROVAL OF AGENDA: 5. CONSIDER APPROVAL OF DECEMBER 19, 2005, MEETING MINUTES: 6. CONSENT AGENDA: Those items on the Council Agenda which are considered routine and non- controversial are included as part of the Consent Agenda. Unless the Mayor, a Councilmember, or member of the public specifically requests that an item on the Consent Agenda be removed and considered separately, Items on the Consent Agenda are considered under one motion, second and a roll call vote. Any item removed from the Consent Agenda shall be placed on the City Council Agenda as a separate category. A. Consider Approval of Invoices to be Paid. B. Consider Approval of a Resolution Authorizing Full and Final Payment to Waldor Pump and Equipment for the 2005 Lift Station Rehabilitation Project (City Project 05-05). C. Consider Approval of a Resolution Approving the Assignment of the Development Contract for the Plat Known as Belmont Estates. D. Consider Approval of a Resolution Approving the Assignment of the Development Contract for the Plat Known as Berens Woods. www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 7. ITEMS REMOVED FROM CONSENT AGENDA: 8. PUBLIC HEARINGS: None. 9. PRESENTATIONS: None. 10. OLD BUSINESS: A. Consider Approval of a Report Regarding Establishment of a CR 21 Accident Reduction Zone. B. Consider Approval of a Resolution for a Cooperative Agreement for Spring Lake / Prior Lake Watershed Outlet Channel Improvements Phase I. 11. NEW BUSINESS: A. Consider Approval of a Report Regarding Frost Point Circle. B. Consider Approval of a Resolution Authorizing Preparation of a Feasibility Report for Ida Circle. C. Consider Approval of 2006 Official City Fee Schedule. D. Consider Approval of City Council Annual Appointments to Boards, Commissions and Committees. E. Consider Approval of a Resolution Calling for a Public Hearing On the Establishment of the Development Program for Development District No.5; the Proposed Establishment of Tax Increment Financing District No. 5-1; the Proposed Adoption of Tax Increment Financing Plan Therefore, and the Proposed Awarding of a Business Subsidy. 12. OTHER BUSINESS/COUNCILMEMBER REPORTS: A. Community Events. 13. ADJOURNMENT ~,...___"....o--._+'_,.________;---__'________~_~_..__,~_.__.,_..__.._..., 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 City Council Meeting Minutes December 19. 2005 Draft REGULAR COUNCIL MEETING MINUTES December 19, 2005 CALL TO ORDER: Present were Mayor Haugen, Councilmembers Fleming, LeMair and Zieska, City Manager Boyles, City Attorney Pace, Public Works Director/City Engineer Albrecht, Planning Director Kansier, Finance Director Teschner, Communications Coordinator Oster, Parks Supervisor Friedges, Assistant to the City Manager Meyer, and Administrative Assistant Green. Mayor Haugen announced that Mediacom is working to correct static on tonight's live broadcast. He announced that Councilmember-Elect Dornbush's husband, David, passed away yesterday and the funeral will be Tuesday. 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. Boyles: Reviewed the concept of the Public Forum. Daryl Fisher, president of the Glynwater South Townhome Association, stated that Glynwater is east of the acreage that is being requested to be put into federal trust. He expressed concern that residents were not notified regarding the Council's position nor given a forum to voice opinions about what might have happened to that land. Bill Rudnicki, SMSC, responded that the area is guided for single-family residential which is complementary to the subdivisions that surround it. Noted that SMSC has taken care of the land with buffers to avoid soil erosion as well as monitor the lake quality. Roger McBride, 5518 Lost Horizon Circle, spoke about a Prior Lake American letter to the editor written by Council- member Fleming. Expressed concern that references to discrimination might be referring to his group. Stated that his group does not oppose having land placed into trust if SMSC has demonstrated need for it. Believes having the land in trust will have an adverse impact to City due to immunity from zoning regulations and lost property tax income. Read excerpts from the letter the City sent to the Bureau of Indian Affairs and stated he has concerns about the economic impact of loss of property taxes and development fees; and concerns about inhibiting roadway construction as ease- ments would be needed on the property. Believes Prior Lake should have traveled to Washington DC to oppose the action along with Shakopee and Scott County. Stated that Prior Lake has offended Shakopee and Scott County and that he hopes SMSC will reimburse the City for lost revenue. Glyn Crooks, SMSC, thanked the Council for withdrawing opposition to SMSC's fee-to-trust. Happy to hear it is not about discrimination. Bill Rudnicki, SMSC, stated he wanted to rebut comments by McBride. Noted that potential development fees of 1.6 million would only be paid if the land was not owned by SMSC; and that SMSC will build and pay for the infrastructure when developed. Identified that SMSC paid for the sewer services when it was extended to tribal land along CR 82 and that SMSC has funded several projects that benefited all users such as three civil defense sirens, CR 42 and 18 inter- section upgrades and the Hwy 169 and 25 bypass. Believes that SMSC is a good neighbor. www.cityofpriorlake.com 1 Phone 952.447.4230 / Fax 952.447.4245 City Council Meeting Minutes December 19. 2005 Draft Paul Viereck, 3465140th Street NW, commented on length time he has lived in the area and noted that SMSC is a model community that is clean, kept up and organized. Stated that the work they do is well done, on time and paid for. Noted that there are other gambling venues in the area and that people who go to the casino go there by choice. Be- lieves that developments in the area would not exist except for the casino and that millions of dollars of revenue are generated from it. Wes Mader, 3470 Sycamore Trail, stated he was surprised by the decision made and was disturbed to hear that he supported placing more land in trust while he was the mayor. States he wants the record clear that during his four years as mayor, the Council continuously opposed the placement of any more land into trust. Stated that, at the time, the Council concluded the tribe had not made a case for placing more land into trust based on data that showed the ratio of residential property per member on the reservation was four to five times the acreage per person in Prior Lake. Stated he offered to meet with tribal representatives so they could present their case and they used the concept of sov- ereign nation to say they didn't need to present the data so, therefore, the Council continued its opposition to the appli- cation. Stated that the decision at the December 5 meeting constitutes a change in policy. Keith Anderson, SMSC, thanked the City for its support and thanked Councilmember Fleming for the letter in the pa- per. Stated that SMSC is not asking for permission to have the land placed into trust, just support. Also noted that SMSC could choose not to provide the information. Noted that SMSC, as a sovereign government, takes the responsi- bilities that elected officials and concerned citizens do in that buildings constructed are built in accordance with State and City building codes; and that they have the resources to manage inspections and zoning codes, etc. and they ad- here to them. Noted that there have been incidents of encroachment upon tribal land by developers that caused dam- age, and there has been no means of recovery. Sandee Wright, 14300 Timothy Ave, stated Fleming does not know the people of Prior Lake and that she objects to his statements. Stated the decision should have been discussed and voted upon and she believes SMSC does not have need for more land to be placed into trust. Stated that taxpayers should not be required to pay for the impact on roads, schools and infrastructure and that land should not be removed from the tax rolls. Believes future generations will have to pay for the loss of revenue. Asked if the Council receives a benefit from this decision and stated that the citizens of Prior Lake received nothing tangible; and she expressed a desire that the Council to publicly disclose both present and future business dealings with the SMSC and any of their business entities. Stated that this Council would be remem- bered as the lame duck council that gave away Prior Lake land for perpetuity. Bill Rudnicki, SMSC, stated that Wright must not have heard him speak about the contributions of SMSC to the city. Noted that the last time land was put into trust was the former Menden farm in 1993 and Dakotah Sport and Fitness is the only building on that land. Believes the fitness center provides as service for all people of the city and that the city gained a gem of a property. Harry Alcorn, 14283 Shady Beach Trail, supports the decision of the Council and thanked outgoing members for their contributions. Stated that Prior Lake has grown and developed because of partnership with SMSC. More resources are available now. Believes it is a benefit that Prior Lake is proactive in working with neighbors and seeking ways to benefit each other in the future. States the benefit is not a "line item" from reimbursements back to the City or a tax incremental basis that is received from each home, but a long-term advantage that is financial. Asked the Council for the insight of the strategy and reason behind the decision so we can embrace it and move forward. Bob Barsness, 5400 Fairlawn Shores, noted that the SMSC has paid 12 million dollars over the past nine years for infrastructure, parks, roads, fire and police services. Its payroll is 45 million dollars a year to people in Scott County who 2 ~___~_..___"..__._.,,__.~.......~_~ _"'_'.""___'>'~.~__'".'~'."__"'_'_'_""~'_""'_~___~___~,~,..~__._.~.__b_',.~_,~~ I City Council Meeting Minutes December 19,2005 Draft pay taxes and buy products and services in the county. It has also provided hundreds of thousands of dollars in dona- tions. Believes SMSC is a strong corporate citizen in the County and should be thanked for that. Paul Viereck, 3465 140th Street NW, stated statistics of treaties broken and casinos owned. Stated Mystic Lake is one of the best in the country and they contribute hundreds of thousands of dollars to minority groups throughout the coun- try. Questioned what would happen if the property they are developing were a TIF district or it referendums would have needed to be passed to build the hockey facilities. Comments: Zieska: Responded that the request for fee-to-trust has been an issue for more than five years. Noted that his position has been to oppose an application to the BIA that involved putting all the land in trust at one time. Need had to be dem- onstrated and done over time; and over the last five years, the tribe has demonstrated that need. He has been on their land and noted that park land has been turned over to housing. He has never been opposed to incrementally placing land into trust. He referred to council meeting minutes of November 6, 2000, that stated Mader advised the Council he had met with SMSC and his request for another option from them was denied. Invited Mader to the podium and asked what the other option was if it was not for incremental placement of land into trust. Mader: Stated that the meeting was between himself and tribe privately. Zieska: Asked what was discussed. Mader: Stated that the Council discussed that if the tribe could make a case for the need for land, it would consider that. Met with tribe to see if they would provide that information and they said they would not. Fleming: Stated that he would stand by his opinion expressed in his letter to the editor and that he has confidence in his research. Stated that as a black man living in Minnesota, it would be foolish to not acknowledge the impact of race and socio-economic bias, and that he called it the way he sees it. This land trust issue was an opportunity to state his opinion and that he did not commit libel or defamation of character. Wright referred to the Council as lame duck and he took umbrage to it. Stated Wright does not know the collective character of this Council; they take the job seriously. Took pride during his tenure as a Councilmember that he did not waiver from his principal, and was impeccable in his research and preparation. Petersen: Stated he has never been on the take and that the Council does not take money to make a decision and he is offended by the fact that Wright thinks they would. LeMair: Stated he has never seen garbage thrown as much as when decisions are made that someone doesn't like. Takes offense that the Council was called sleazy and being asked what they get out of the job. Stated he has never received payments from SMSC or anyone else; and that his involvement in the Council is his opportunity to make this a better community. Commented that fellow Councilmembers have honesty and integrity and have been working together to making this a better community. BIA will make the decision about whether the land is brought into trust; and SMSC has the right to purchase land and are part of this community. As a Council member he represents the people of SMSC as well as the people of Prior Lake. Noted that the tax dollars on the property the City supported putting into trust are less than $2,000 per year. Noted that the City does not have to support them for what we get in return, but because we have a relationship with them. Haugen: Noted that nothing is more important than integrity, he was offended by several of the comments and personal attacks are out of line. Noted that he went to Washington four years ago with Shakopee and Scott County and he noted the consistent approach to support incremental trust transfer. Stated he has pride about the decision made by the Council at the December 5 meeting, but not about the process. Gave a background on the events that led up to the decision, noting that a group of representatives from Shakopee, Scott County and Prior Lake met with the BIA at Fort Snelling a few weeks ago and shared comments about commitment to incremental need transfer that were consistent to the last few years. Weeks later they talked about the need for a letter to be sent to the tribal community offering condi- tions and points of disagreement. He did not believe the content of proposed letters would do anything to build relation- ships in the future and did not sign it. Independent of Shakopee and Scott County, Prior Lake sent environmental as- sessment comments to the BIA. He reminded that Prior Lake's 2030 Vision says we are proud to be home to the 3 ----.,--~~.~------ --.--...... "._----~.._-+-------..~.__.........----:-_.'"~'~------,.~._-----~--'-~._~-~._._....-...~-_.._,'"-~.~-~._,~-_.'_.,~",.,._-_..,,.~,,--~-"--'"-"""_~""'~~~"""--"-'-'-"'~'."-'-'.'~~-'~-""'-.'" City Council Meeting Minutes December 19,2005 Draft SMSC. Prior to last council meeting, it was noted that a response needed to be made to the BIA either supporting or not supporting the trust application on the following day. The agenda had already been printed and distributed. After the December 5 meeting, the City Manager was asked to contact Shakopee and County administrators to advise them that Prior Lake would not be going to Washington. Haugen spoke about what the tribe brings to the City as a good neighbor and that he doesn't want the relationship to be "them" vs. "us." Suggested that some resistance was due to jealousy. Reiterated that the SMSC is part of the community, that they already own the land and if the BIA rules that it can be transferred into trust, they can develop it. Expressed that he was glad this topic was brought up during the public forum so this dialogue could occur and everyone would know the stance of the Council and the sequence of events. APPROVAL OF AGENDA: City Manager Boyles requested that item 5H, Consider Approval of Resolution Calling For a Public Hearing on the Establishment of the Redevelopment Program for Redevelopment District 5; the Proposed Establishment of Tax Increment Financing District 5.1; the Proposed Adoption of the Tax Increment Financing Plan Therefore, and the Proposed Awarding of a Business Subsidy (Premiere Dance Academy), and item 8A, Communications Report, be deferred to a future meeting. MOTION BY PETERSEN, SECONDED BY FLEMING TO APPROVE THE AGENDA AS MODIFIED. VOTE: Ayes by Haugen, Fleming, LeMair, Petersen and Zieska. The motion carried. APPROVAL OF MEETING MINUTES MOTION BY PETERSEN, SECONDED BY LEMAIR TO APPROVE THE NOVEMBER 9, 2005, MEETING MINUTES AS PRESENTED. VOTE: Ayes by Haugen, LeMair and Petersen. Fleming and Zieska abstained due to their absence at the meeting. The motion carried. MOTION BY FLEMING, SECONDED BY ZIESKA TO APPROVE THE DECEMBER 5, 2005, MEETING MINUTES AS PRESENTED. VOTE: Ayes by Haugen, Fleming, LeMair and Zieska. Petersen abstained due to his absence at the meeting. The mo- tion carried. CONSENT AGENDA: City Manager Boyles reviewed the items on the consent agenda. A. Consider Approval of Invoices to be Paid. B. Consider Approval of Treasurer's Report. C. Consider Approval of Building Permit Report. D. Consider Approval of Animal Warden Report. E. Consider Approval of Fire Call Report. F. Consider Approval of Resolution 05.196 Authorizing the Initiation of Civil Enforcement Actions. G. Consider Approval of Resolution 05.197 Authorizing Full and Final Payment to Northwest Asphalt, Inc. for the 2004 Street Improvement Project (Project 04-11). H. Removed from the agenda. I. Consider Approval of 2006 Cigarette License Renewals. J. Consider Approval of Temporary On Sale Intoxicating Liquor License for the Church of St. Michael. K. Consider Approval of Body Art License Renewal for Jerome DeLeon. L. Consider Approval of 2006 Renewal Massage Therapy Licenses Councilmember Zieska asked that Item 51 be removed from the consent agenda. 4 ---------~~~"... ~,_~~.w._...., .~..-.-.~'~'--..---..'.--T~'.~-~.-""".~.-".~.--.~-'-...---~~-.,_..,._--.-.-,~-.....--...--,-.---,.-...,~-..---.., .------.- City Council Meeting Minutes December 19, 2005 Draft MOTION BY ZIESKA, SECONDED BY FLEMING TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF ITEM 51, APPROVAL OF 2006 CIGARETTE LICENSE RENEWALS. VOTE: Ayes by Haugen, Fleming, LeMair, Petersen and Zieska. The motion carried. Zieska noted that he asked that item 51 be removed because one of the applicants is Kwik Trip and is his employer. MOTION BY LEMAIR, SECONDED BY PETERSEN TO APPROVE ITEM 51, APPROVAL OF 2006 CIGARETTE LICENSE RENEWALS. VOTE: Ayes by Haugen, Fleming, LeMair, and Petersen. Zieska abstained. The motion carried. PUBLIC HEARINGS: Ordinance Adopting Sections 312, 313 and 314 of the Prior Lake City Code Establishing Gas and Electric Fran- chises and Franchise Fees. Finance Director Teschner presented the agenda report for this item. Noted that we currently charge Mediacom a fran- chise fee; charge utility companies right-of-way fees; and have also dealt with community utility surcharges which are intended to recover infrastructure costs for the utility. Stated the City wants to include all public facility easements in the definition of right-of-way which would include CenterPoint Energy, Xcel Energy, Minnesota Valley Electric and Shako pee Public Utilities. MOTION BY LEMAIR, SECONDED BY ZIESKA TO OPEN THE PUBLIC HEARING. VOTE: Ayes by Haugen, Fleming, LeMair, Petersen and Zieska. The motion carried and the public hearing opened at 8:47 p.m. Ron Jabs, Minnesota Valley Electric at 125 MVEC Dr., Jordan, looks forward to working with council and staff in developing this. Concerned that they just received the written document and did not have enough time for review. Since there will be ramifications for ten years, he would like more time to look at concems and issues. Mentioned sections that caused concern such as commission and jurisdiction over rates and the application of permit fees and franchise fees. Believes that franchise fees are in lieu of tax and will be added to bill and go back to customer. Asked if fees would apply to SMSC. State that MVE serves portions of 22 communities and this is first one that is considering franchise fee. They are not sure how quickly they could implement that tracking. Wants to discuss restoration timeline notice, reporting requirements and abandoned facilities. Relocation requirements raise technical issues for which they would like further discussion. Asked decision to be delayed so details could be worked out. Dave Pearson, Xcel Energy at 210 Lime Street, Mankato, thanked the Council for the opportunity to renew the fran- chise agreement which expired in 1985. Stated that different energy providers have different needs and he wants to discuss how proposed fees would impact customers. Spoke of surcharges on only Xcel customers, which he perceives as unfair and wants to discuss how to dovetail surcharges into franchise fees. Stated he would advocate for a 20-year agreement. Stated that Xcel Energy has enjoyed its partnership with the City and, along with Prior Lake Telephone Company, was one of the initial contributors to EDA and a business park and is the largest taxpayer in the State, the County and the City of Prior Lake. Asked the Council to table the item for 30-45 days to allow time for discussion of the term of the agreement and the fee provision. Jennifer Thulien Smith, Xcel Energy at 800 Nicollet Mall in Minneapolis, stated she also wants a chance to discuss fees. Believes the City cannot unilaterally impose conditions of a franchise and that it is contract law. Utilities have ob- ligation to enter into good-faith negotiations, but a City cannot force a utility to accept whatever terms it chooses. States that Xcel cannot agree to a franchise contract that is inconsistent with franchise agreements with other cities. 5 City Council Meeting Minutes December 19,2005 Draft Louis Van Hout, Shakopee Public Utility Company at 255 Sarazen Street, Shakopee, distributed a letter and high- lighted the issues it contained. Stated that it is a local decision, that he is not waiving any legal rights and asked for additional time to review the proposal and discuss the possibility of refinement of the proposed ordinances. Dave Pearson commented that electric energy providers are essential service providers, invest in their own utilities and are subject to personal property taxes. MOTION BY PETERSEN, SECONDED BY ZIESKA TO CLOSE THE PUBLIC HEARING VOTE: Ayes by Haugen, Fleming, LeMair, Petersen and Zieska. The motion carried and the public hearing closed at 9:12 p. m. Comments: LeMair: Stated that there are things to work out with the utilities. The additional revenue is needed and there is hope to cut costs in other essential operations by receiving these fees. Noted that Mediacom pays fees and each of these entities are using easements and should have to pay something. Zieska: Supports the franchise fee agreements, but favors deferring it so staff can work with vendors on the valid points that were raised. Asked if the amount of the fee is locked in until the ordinance is changed, or for the length of the fran- chise agreement. Teschner: Replied it would be subject to review by the Council. Zieska: Noted that perhaps the ordinance should say that each January the Council would approve a new fee sched- ule. Petersen: Noted that cable is an option so if people don't want to pay the fee, they don't have to have cable; but people need the energy so would have to pay the fee. Asked if there is a reduction in any other area or if this would just be an add-on. Teschner: Comment on State funding of market value credit and whether or not it would be implemented in 2007. If so, the franchise fees would be a property tax write down. Also noted that the fees could give the City flexibility to offset shortfalls. Xcel surcharge is for infrastructure burial of overhead lines, not for the City of Prior Lake. Franchise fees are specifically allowable by State law. Petersen: Commented about the temporary sales tax that was executed which was never repealed, but just became greater. Asked if there was a rush to have franchise fees approved. Teschner: Stated the ordinance would be standardized and passed to each utility company rather than separately negotiated with each utility company, which is similar to the water tower antennae agreements. Staff is recommending having a standard franchise agreement for all electrical companies and a different one for gas. Fleming: Requested council to consider deferment for 30-45 days. Haugen: Asked the Finance Director what a reasonable time for deferment would be. Teschner: Thirty days. MOTION BY ZIESKA, SECONDED BY FLEMING TO DEFER THIS ITEM UNTIL THE FIRST MEETING OF FEBRUARY 2006. VOTE: Ayes by Haugen, Fleming, LeMair, Petersen and Zieska. The motion carried PRESENTATIONS: Communications Report - Electronic News This item was removed from the agenda. Recognition for Outgoing Council members and Advisory Committee Members City Manager Boyles noted the service of outgoing advisory committee members Brad Beneke, Tom Borger and Ruth Harris and Mayor Haugen thanked them for their contributions. Boyles identified the years of service for outgoing 6 City Council Meeting Minutes December 19. 2005 Draft council members and noted the accomplishments completed by the Council during their tenure. Mayor Haugen pre- sented plaques and expressed appreciation to each of them for their service. Fleming: Stated that even though he would not be on the Council, he will continue working toward progressive vision. Stated that it has been a great year and he learned a lot; he appreciated getting to know the other Councilmembers and will miss working with the City staff. Thanked the people who disagreed with him because that tension lets life happen. Noted that successor, Millar, will do great things. Petersen: Recalled projects he worked on while in office and some of the progress that has been made by the City such as orderly annexation, infrastructure around Spring Lake and traffic signals by McDonald's. Zieska: Expressed pride for what has happened in Prior Lake over last five years. Noted that not everyone has agreed with actions of the Council, but that he has no regrets about any of his votes. Stated that he is honored to have served the residents and that City staff are second to none. Recognized the late Gene White and stated that he admired his passion and the way he would base decisions on what was good for the City. Thanked Jim Petersen for teaching him to be fair and consistent. Thanked his family and wife for their support. RECESS Mayor Haugen called a recess at 9:49 p.m. RECONVENE The meeting reconvened at 10:03 p.m. OLD BUSINESS: Consider Approval of a Resolution Adopting the 2006 Operating Budget and Enterprise Budgets, and Certifying Final Property Tax Levy to Scott County. Teschner reviewed the processes followed leading up to the adoption of the budget and responded to questions that were raised at the public hearing. Commented on property tax relief programs that could be a benefit to Prior Lake resi- dents and Mayor Haugen requested that the information about the property tax refunds be placed on the City's Website. Comments: Zieska: Noted that he had communicated with residents who indicated a desire to do so regarding the 2006 budgets. Commented that budget planning needs to be long-range; and be gauged on inflation and comparable communities. Will support the budget as presented. LeMair: Will support the budget as is. Noted that tax dollars at work can be viewed by driving through the community. Haugen: Stated that one of the 2030 vision elements has to do with fiscal management and the Council's focus has been to invest dollars wisely and create value for the community over time. Noted that the improved bond rating allows the City to pay for things at a lower interest rate. MOTION BY FLEMING, SECONDED BY PETERSEN TO APPROVE RESOLUTION 05-198 ADOPTING THE 2006 PRIOR LAKE BUDGETS AND CERTIFYING FINAL 2006 CITY OF PRIOR LAKE PROPERTY TAX LEVY TO SCOTT COUNTY DEPARTMENT OF TAXATION. VOTE: Ayes by Haugen, Fleming, LeMair, Petersen and Zieska. The motion carried. Consider Approval of a Report Regarding the Sand Point Beach Americans With Disabilities Accessible Play- ground Equipment Upgrade. Parks Supervisor Friedges presented the agenda report for this item. Noted that the Capital Improvement Program meets the City's need to have a transition plan to identify how it intends to meet ADA standards for playground struc- tures. Informed the Council that four staff members are licensed to inspect equipment for ADA compliance. Responded to questions raised by Mr. Connors. 7 City Council Meeting Minutes December 19, 2005 Draft Comments: LeMair: Playground equipment is in the right location and meets ADA requirements. Zieska: The report satisfies questions about location of the playground equipment and the retaining wall. Petersen: The report covered all the concerns. Fleming: The report did a great job of addressing concerns. Haugen: Stated that the location of playground equipment doesn't take away green space and the finished result will be a positive thing for the vast majority of users. Consider Approval of Proposed Amendment to Ryan Contracting Settlement Agreement. Planning Director Kansier presented the report for this agenda item. Comments: Fleming: Will support the execution of the amendment and release. Petersen: Stated that it is becoming harder to find gravel. Will support the agreement. Zieska: Stated that this clarifies the intent of the original CUP. LeMair: Will not support the agreement and stated he does not want a gravel pit in this location since it is too close to neighborhoods and churches. Haugen: Commented that the location is not ideal, but the positives outweigh the negatives. MOTION BY ZIESKA, SECONDED BY FLEMING TO APPROVE THE PROPOSED AMENDMENTS TO THE RYAN CONTRACTING SETTLEMENT AGREEMENT. VOTE: Ayes by Haugen, Fleming, Petersen and Zieska. LeMair opposed. The motion carried Consider Approval of a Resolution Rescinding Cancellation of the CUP and Clarifying Through Recision the Intention and Effect of Resolution 05.134. Planning Director Kansier presented. Noted that the proposed resolution clarifies the intent of resolution adopted in July and will assure there is no confusion about the action the City intended to take. MOTION BY FLEMING, SECONDED BY ZIESKA TO APPROVE RESOLUTION 05.199 TO RESCIND IN PART RESOLUTION 05-134 AND RESCIND THE CANCELLATION OF CONDITIONAL USE PERMIT # 01-19 (approved Feb- ruary 27,2001). VOTE: Ayes by Haugen, Fleming, Petersen and Zieska. LeMair opposed. The motion carried. Consider Approval of City Manager Employment Agreement for 2006. Zieska noted that two weeks ago an executive session was conducted to hold the City Manager's performance review after which staff was directed to make changes to the employment contract. Assistant to the City Manager Meyer out- lined the changes in the employment agreement. Comments: LeMair: Noted the compensation was a well-deserved increase. Zieska: Will support the agreement. Petersen: Agreed that this is the direction we should take. MOTION BY FLEMING, SECONDED BY ZIESKA TO APPROVE THE CITY MANAGER'S 2006 EMPLOYMENT AGREEMENT AS PROPOSED. VOTE: Ayes by Haugen, Fleming, LeMair, Petersen and Zieska. The motion carried. NEW BUSINESS: 8 "'~"._._______''''''''''--''''-_'''___'~~'~.~__,"d'''''''',,""'__~~~_'__'''''__.__"",,--~~.~...~.~__..,_,.__ '.", City Council Meeting Minutes December 19, 2005 Draft Consider Approval of A Resolution Authorizing: 1. Xcel Energy to Bury the Overhead Powerlines Along Dakota Street and Hastings Avenue; 2. Advertisement for Bids for Commercial Electrical Connections Required for Overhead Power Burial. Public Works Director Albrecht described work to be done and displayed maps of the affected area. Comments: LeMair: Supports continuing the project. Zieska: Understands that because of funds already accrued that there would be no additional cost as long as the pro- ject is completed under $74,000. Petersen: Noted that this project continues the downtown improvement. Fleming: Stated that he is glad that staff reports that Xcel is demonstrating a high degree of service and responsive- ness. MOTION BY PETERSEN, SECONDED BY LEMAIR TO APPROVE RESOLUTION 05-200 AUTHORIZING XCEL ENERGY TO BURY THE OVERHEAD POWERLlNES ALONG DAKOTA STREET AND HASTINGS AVENUE. VOTE: Ayes by Haugen, Fleming, LeMair, Petersen and Zieska. The motion carried. MOTION BY FLEMING, SECONDED BY LEMAIR TO APPROVE RESOLUTION 05-201 AUTHORIZING ADVERTISEMENT OF BIDS FOR COMMERCIAL ELECTRICAL CONNECTIONS REQUIRED FOR OVERHEAD POWER LINE BURIAL. VOTE: Ayes by Haugen, Fleming, LeMair, Petersen and Zieska. The motion carried. Consider Approval of a Resolution Approving a Local Government Aid Agreement with the Shakopee Mdewa- kanton Sioux Community. City Manager Boyles presented this item on the agenda and noted that the agreement is applied back to the years of 2004 and 2005 for which the City received funds for police and fire aid. Comments: Fleming: Commented that this is another example of partnership and problem solving. Petersen: Keep working together. Zieska: Stated the agreement makes sense. LeMair: Noted that this is a voluntary payment and that even if SMSC did not provide this payment, the City would still have to provide the services. Haugen: Stated that this is a reflection of the relationship between the communities moving forward in the spirit of co- operation. MOTION BY PETERSEN, SECONDED BY FLEMING TO APPROVE RESOLUTION 05-202 AUTHORIZING THE EXECUTION OF A LOCAL GOVERNMENT AID AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND THE SMSC. VOTE: Ayes by Haugen, Fleming, LeMair, Petersen and Zieska. The motion carried Consider Approval of a Resolution Ratifying a 2006-2008 Collective Bargaining Agreement for LELS Local 100. Assistant to the City manager Meyer presented the highlights of the proposed agreement. Comments: LeMair: Stated that it appears to be within industry standards and will support it. Zieska: Stated that it appears to be in line with agreements with other employee groups. Petersen: Will support it. 9 City Council Meeting Minutes December 19,2005 Draft Fleming: Will support it. Commented that it is easy to take for granted the comfort and level of safety we enjoy as citi- zens. Haugen: Queried about the retirement health savings plan. Meyer: Replied that more people can take advantage of retirement health savings plan than can use long-term disabil- ity and that it is available in lieu of long term disability insurance contribution. MOTION BY LEMAIR, SECONDED BY ZIESKA TO APPROVE RESOLUTION 05.203 RATIFING THE 2006-2008 LABOR AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND LAW ENFORCEMENT LABOR SERVICES, INC. LOCAL 100. VOTE: Ayes by Haugen, Fleming, LeMair, Petersen and Zieska. The motion carried Resolution Approving Standard Gas and Electric Franchise Agreements with Centerpoint Energy, Xcel Energy, Minnesota Valley Electric and Shakopee Public Utilities Commission. This agenda item is deferred until first meeting of February. Consider Approval of Change Order #1 to the Police Station I City Hall Project. City Manager Boyles presented and noted that the change order is requested to respond to Shaw Lundquist's claim for compensation for sales and use tax. A claim amount of $125,000 was negotiated and proposed to be paid from the contingency account. Owner's Representative Wolters stated that everyone involved acted in the best interest of the position they were rep- resenting. Contract documents were represented as city standard contracts. Explained that there is tax exemption for libraries and jail facilities. Noted that the initial claim was for more than $198,000 and believes that the $125,000 amount is fair without being punitive to anyone. Comments: Fleming: Asked for clarification of the contingency amount remaining. Petersen: Stated he understood the confusion. Zieska: Stated he has been "harping" on the legislators that the State charges the City a sales tax. We are sending tax dollars from our citizens to the State as sales tax. LeMair: Asked if the bid specs called out that this was supposed to be bid with the tax in it. Wolters: Replied that it was not on five or six materials such as concrete, steel, glass systems, etc. LeMair: Asked if specs different from what Wolters would normally call out for. Wolters. Replied that he didn't think so. LeMair: Asked if this was the first bid for Shaw Lundquist. Wolters: Replied that they are experienced bidders. LeMair: Stated that this is a long project which would cost us if we went to court. He will support this because it is det- rimental to not move forward with the construction. Haugen: Noted that it is frustrating that there is no appropriate recourse, but there is a long relationship ahead with Shaw Lundquist to complete the project. Expressed concern that there is only $125,000 remaining in the contingency fund. Wolters: Responded that he is looking for opportunities to bolster the contingency fund and value engineer the project. MOTION BY ZIESKA, SECONDED BY FLEMING TO APPROVE CHANGE ORDER #1 AS RECOMMENDED. VOTE: Ayes by Haugen, Fleming, LeMair, Petersen and Zieska. The motion carried 10 City Council Meeting Minutes December 19,2005 Draft Consider Approval of a Resolution Authorizing the Staff to Proceed With the Implementation of 2006 Capital Improvement Project. City Manager Boyles presented the report for this item. Comments: LeMair: Supports each of the projects. They have been planned and the community needs them. Zieska: Water treatment plan and fire station are long-term building projects and it will be good to get them in the ground next year. Fleming: Noted that the City has to make investments in infrastructure. Haugen: Stated this is appropriate action for long-term investments. They have been on CIP for years and it is time to move forward. MOTION BY ZIESKA, SECONDED BY FLEMING TO APPROVE RESOLUTION 05.204 DIRECTING CITY STAFF TO PROCEED WITH THE IMPLEMENTATION OF CERTAIN 2006 CAPITAL IMPROVEMENT PROJECTS. VOTE: Ayes by Haugen, Fleming, LeMair, Petersen and Zieska. The motion carried OTHER Councilmembers offered holiday greetings and expressed appreciation for the contributions of the outgoing Council- members. ADJOURNMENT With no further comments from Council members, a motion to adjourn was made by Fleming and seconded by LeMair. With all in favor, the meeting adjourned at 11 :52 p.m. Frank Boyles, City Manager Charlotte Green, Recording Secretary 11 "',~~_._.......o____.___..............,,. .~_~~~_._...______~_"._._._~~~,,_~"__..._,.~.,_-...*.__,. .h'_,~,~"_,,,_~,~_,,~_~,,,~_,,,,,,,,,___,._...~"..~,_.."_~'_';"'_"_"