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HomeMy WebLinkAboutAgenda & Minutes 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 REGULAR COUNCIL MEETING AGENDA May 15, 2006 6:00 p.m. Fire Station No.1 City Council Work Session 5:00 p.m. Pike Lake Ponds This meeting is open to the public. 1. CALL TO ORDER and PLEDGE OF ALLEGIANCE: 2. 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. 3. APPROVAL OF AGENDA: 4. CONSIDER APPROVAL OF MAY 1, 2006, MEETING MINUTES: 5. 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 Treasurer's Report. C. Consider Approval of Building Permit Reports. D. Consider Approval of Animal Warden Report. E. Consider Approval of Fire Call Reports. F. Consider Approval of an Application for Financial Assistance from Shepherd's Path Senior Housing L.L.C. and Resolutions: 1. Calling for a Public Hearing on a Proposal for a Housing Finance Program and the Issuance of Revenue Bonds to Finance Senior Independent Living Facility Pursuant to Minnesota Law and Authorizing the Publication of Notice of Hearing. 2. Calling for a Public Hearing on June 26, 2006, on the Establishment of the Development Program for Development District 6 and the Proposed Establishment of Tax Increment Financing District 6-1 and the Proposed Adoption of the Tax Increment Financing Plan Therefore. www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 G. Consider Approval of a Resolution Authorizing Execution of a Contract with Scott County for the Local Laker Link. H. Consider Approval Of A Resolution Authorizing General Fund Transfer To The Building Fund. I. Consider Approval of A Resolution Approving Appointments to the Water Treatment Plant Committee. J. Consider Approval of a Resolution Waiving Platting Requirements for the Subdivision of Property Located at 14310 Pike Lake Trail (Vierling Property). 6. ITEMS REMOVED FROM CONSENT AGENDA: 7. PRESENTATIONS: A. City Preparation in the Event of an Avian Flu Pandemic B. Police Station!City Hall Building Update - Bill O'Rourke and Bill Wolters C. Economic Development Report - Paul Snook 8. PUBLIC HEARINGS: A. Consider Approval of a Resolution Vacating the Drainage and Utility Easement Located on Lot 2, Block 3 and Outlot B Grainwood Heights (4131 Eau Claire Trail). 9. OLD BUSINESS: A. Consider Approval of a Report from the Scott County Assessor's Office Regarding the May 1, 2006, Board of Appeals and Equalization Hearing. B. Consider Approval of a Request for Time Extension for the Execution of a Development Agreement for the Franklin Trail! Park Nicollet Drive Property. C. Consider Approval Of A Resolution: 1. Approving the LSB Lift Station Construction Cooperation and Reconveyance Agreement. 2. Amending The 2006 Lift Station Project Professional Services Agreement. D. Consider Approval Of An Ordinance Rezoning 28.04 Acres From R-S To R-1 And Consider Approval Of A Resolution Approving A Preliminary Plat To Be Known As Pike Lake Ponds. E. Consider Approval Of A Resolution Accepting Bids and Authorizing the Execution of the City's Standard Construction Contract for the 2006 Park Sidewalk Projects and for the 2006 Park Trail! Basketball Court Project. 10. NEW BUSINESS: A. Consider Approval Of An Ordinance Amending The Zoning Map To Designate Property As Hickory Shores Planned Unit Development, And A Resolution Approving The Preliminary Plat To Be Known As Hickory Shores B. Consider Approval Of A Resolution Approving An Amendment To The Comprehensive Plan Land Use Map Of Approximately 7.5 Acres Of Property From C-BO (Business Office Park) To R-HD (Urban High Density Residential) On The Property Located At The Northeast Corner Of The Intersection Of CSAH 42 And CSAH 18. C. Consider Approval of a Report from the Communication Advisory Committee. 11. OTHER BUSINESS/COUNCILMEMBER REPORTS: A. Community Events. 12. ADJOURNMENT 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 City Council Meeting Minutes May 1, 2006 Draft REGULAR COUNCIL MEETING MINUTES CALL TO ORDER: Present were M~yor Haugen, Councilmembers Dombush, Erickson, LeMair and Millar, City Manager Boyles, City Attor- ney Pace, Public Works Director/City Engineer Albrecht, Planning Director Kansier, Finance Director Teschner, Eco- nomic Development Director Snook, Assistant to the City Manager Meyer, Communications Coordinator Oster and Ad- ministrative Assistant Green. PUBLIC FORUM: The Public Forum is intended to afford the public an opportunity to address concems to the City Council. The Public Forum will be no longer than 30 minutes in length. Speakers receive a maximum of ten minutes; less if there are more than three speakers. 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 govemmental 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. Comments: No person came forward to speak. APPROVAL OF AGENDA: City Manager Boyles requested the addition of Item 7C, National Day of Prayer, and Item 11 B, June/July City Council Meeting Schedule, to the agenda. MOTION BY DORNBUSH, SECONDED BY MILLAR TO APPROVE THE AGENDA AS MODIFIED. VOTE: Ayes by Haugen, Dombush, Erickson, LeMair and Millar. The motion carried. APPROVAL OF MEETING MINUTES: MOTION BY LEMAIR, SECONDED BY DORNBUSH TO APPROVE THE APRIL 17, 2006, MEETING MINUTES AS PRESENTED. VOTE: Ayes by Haugen, Dornbush, Erickson, LeMair and Millar. CONSENT AGENDA: Boyles reviewed the items on the consent agenda. A. Consider Approval of Invoices to be Paid. B. Consider approval of Resolution 06.058 Approving Final Plat and Development Contract for the Enclave at Cleary Lake. C. Consider Approval of Resolution 06 .059 Modifying the City Council Bylaws with Respect to Modifications in City Council Meeting Format. D. Consider Approval of Resolution 06.060 Approving Revised Bylaws for the Economic Development Commit- tee and Resolution 06.061 Appointing Members Thereto. E. Consider Approval of Ordinance 106.06 Amending Section 108 of the Prior Lake City Code Changing City Election Years from Odd to Even Years. Mayor Haugen requested that Item 5E, Consider Approval of Ordinance 106.06 Amending Section 108 of the Prior Lake City Code Changing City Election Years from Odd to Even Years, be removed from the consent agenda. www.cityofpriorlake.com 1 Phone 952.447.4230 / Fax 952.447.4245 City Council Meeting Minutes May 1, 2006 Draft MOTION BY MILLAR, SECONDED BY LEMAIR TO APPROVE THE CONSENT AGENDA AS MODIFIED TO REMOVE ITEM 5E. VOTE: Ayes by Haugen, Dornbush, Erickson, LeMair and Millar. The motion carried. Comments: Haugen: Stated he received significant support via telephone, e-mail and conversation for moving the elections from odd to even years, but is questioning the process to move to an even-year election. Stated he was not interested in extending terms and if they were extended, should only be through the electorate raising a referendum. Believes that if it went to a referendum, the vote would only address the change from odd- to even-year elections rather than whether or not the terms of currently elected officials should be extended. Noted that school districts officials are not taking any action until the City makes a decision. Erickson: Commented that he did not vote in favor of changing election years at the last meeting because he was not in favor of the process to get to that (extending terms), but that he does believe in moving to an even-year election be- cause there are enough benefits to it. Reiterated that during the last election, he feels he made a contract with voters to serve a term of four years and does not have the right to extend it, but does have the right to shorten it. Haugen: Outlined the various options offered at the April 17, 2006, Council meeting. LeMair: Stated he is in favor of changing to even-year elections because it is opportunity to become more efficient, there is a cost savings, and there would be no signage in non-election years. In favor of the option of reducing his term by one year to move the change to even-year elections earlier. Asked if there is the option to have his seat's election in 2007 rather than 2008. Erickson: Noted that action would also shorten the term of Millar's seat to one year. LeMair: Responded that he had expressed his personal point of view and Millar could debate the term of his own seat. Teschner: Noted that the second option listed would shorten the term of all members by one year. Commented that an election cannot be held for just one council seat, nor all five seats; and that State statute precludes an election change in 2006 because any change in ordinance could not take effect for 240 days and we would not be able to ac- commodate that time frame. Dornbush: Stated opposition to changing to even-year elections stating that local issues are overwhelmed with state and national issues. Does not believe terms should be either extended or shortened. Millar: Stated that most citizens agree with even-year elections and he is willing to do whatever it takes to get this to happen. MOTION BY MILLAR, SECONDED BY ERICKSON TO APPROVE ORDINANCE 106.06 AMENDING SECTION 108 OF THE PRIOR LAKE CITY CODE CHANGING CITY ELECTIONS TO EVEN YEARS BEGINNING WITH THE YEAR 2010; AND TRANSITION TO EVEN YEAR ELECTIONS BY BEGINNING IN YEARS 2007 AND 2009 THE TERM OF OFFICE FOR CITY COUNCIL MEMBERS SHALL BE THREE YEARS AND ALL SUBSEQUENT EVEN YEAR ELECTIONS SHALL BE FOR FOUR (4) YEAR TERMS. VOTE: Ayes by Haugen, Dornbush, Erickson, LeMair and Millar. The motion carried. PRESENTATION Swearing.in Ceremony for Police Officer Police Chief O'Rourke introduced Shelly Milton as the newest officer of the police department and administered the oath of office to her. Lake Clean.up Day in Prior Lake Proclamation - June 10, 2006 Public Works Director Albrecht informed the Council that Donna Mankowski organized scuba divers for lake clean-up day and recommended that a lake clean-up day be proclaimed for June 10, 2006. Residents are encouraged to clean up private shoreline on that date also. Mayor Haugen read the proclamation. 2 City Council Meeting Minutes May 1, 2006 Draft Comments: Erickson: Noted that organizers for the event have done an excellent job. National Day of Prayer in Prior Lake - May 4, 2006. City Manager Boyles informed the City Council that Connie Perrin organized a prayer day event at the Lakefront Pavil- ion. Mayor Haugen read the proclamation. PUBLIC HEARING: Board of Appeal and Equalization City Manager Boyles explained that the City Council is sitting as the board of review and that the purpose of the public hearing is to determine if the valuation of an individual's property as of January 2006 is the appropriate amount. Bob Schmidt and Brian Connors of the Scott County Assessors office reported that the average increase in property valua- tion through the County ranged from six percent to 19 percent, and explained that the County used the sales ratio proc- ess for valuating property meaning that valuation should be from 90 percent to 105 percent of what the property should sell for. Noted that this hearing was not to discuss taxes, but only valuation. MOTION BY LEMAIR, SECONDED BY DORNBUSH TO OPEN THE PUBLIC HEARING. VOTE: Ayes by Haugen, Dombush, Erickson, LeMair and Millar. The motion carried and the public hearing opened at 7:49 p.m. Letters from John and Linda Meyer, and Robert Klinkhammer were entered into the appeal process. Comments: Maggie Klein and Bob Svitak, PID R252000080, part of the Townsedge Townhome Association, stated her property was valued at $432,100, which is the amount two homes sold for in the next group of buildings, which are larger and have more yard space. Svitak has current appraisal, which appraised his smaller home against one of the homes recently sold. Value went from $222,000 to $432,100. Asked the County to reconsider all four smaller town homes in the group. Jeff Wiltz, PID R250730070. Homes in his neighborhood that are 15-20 percent larger than his home are valued at up to $60,000 less than his. Gave several examples of comparable property. Stated that market value has gone up more than 12 percent each year in past four years. Dave Rozak, PID R253270390. Taxable market value was mislabeled because it will exceed the value of any of the homes that are equal or greater in value to his property. Neighbor is paying $400 per year less in property taxes and has owned the property for seven or more years; Rozak wondered if disparity was because his home was more recently purchased and thus valued at a more recently appraised price. Haugen: Asked assessors to comment on identical houses that are purchased at different times. Schmidt: Replied that two identical homes in same neighborhood should be starting with same market value and taxes should be the same. Stated that one buyer may have purchased more recently, but that should have nothing to do with it. Will be looking at the market and what the home should be selling for. Connors: Stated that the County is using mass appraisal techniques and physically look at properties once every four or five years. May have to use limited taxable market value, which could cause market value of a home to require a few years to catch up. Todd Brautigam, PID R2529700300, reported he paid $598,000 for his home and a neighboring home that is exactly the same was purchased for $600,000 last year; his home was valued at $682,000 and neighboring home at $603,000. Asking to be valued at same rate. Charles Maas, PID R259280121, has lived in home for 25 years. Zoning was changed from agricultural to residential two years ago. Believes there is confusion about where property line is and believes it should still be agricultural. 3 City Council Meeting Minutes May 1, 2006 Draft G. Bryan Fleming, R252970440, displayed comparisons of neighboring properties and noted that smaller footprint homes experienced a higher percentage of increases. Read Scott County mission statement, which states that the County will provide quality public service to all citizens in an effective, professional and efficient manner. Commented that County could cultivate public trust by assuring that an adequate number of site visits are being conducted as de- fined by Statute and consider whether the mass appraisal system is valid and predictive, as well as consider what could be done to eliminate rise and fall of property taxes. Asked if the City should consider contracting with a more reliable appraisal entity. Commented that it was difficult to get a response from the assessor's office. Asked if County would convey how much extra revenue is realized as a result of the recent valuation process; and when and how the extra revenue would be allocated. Schmidt: Responded that there is no revenue to be allocated, but the tax rate comes from the determination of how much the county, city, and school need to spend and to carry on operations. Fleming: Agreed that a more appropriate request is to see what the budget is. Julie Cleary, PID R252970240, 253760,570, 253760500, 253850380, read a listing of the dates of her attempts to con- tact the assessor's office for which she received no response. Noted there is an appointment scheduled to view her properties on May 2. Stated the County needs to address the responsibility of its employees, she is unhappy with the lack of response to queries and it makes the County look bad. Stated the valuation of property went up $260,000, which was 52%, and that her home is one of the smaller homes in the neighborhood. Believes a blanket assessment is not appropriate for her property. Townhomes were assessed at price that they could not be sold for and that those properties need to be looked at. Schmidt: Apologized and agreed that calls should have been returned. Connors: Apologized if his response to Cleary on Friday made it appear that he was making an excuse. Greg and Melissa Thompson, PID R250310130, has oldest home in the neighborhood buttaxes are much higher than neighbors, and this year's taxable value increased $86,000. Asked how taxable market value is calculated, whether on land or building. Schmidt: Replied that it is calculated on both. Melissa Thompson: Asked if it is calculated on taxable market value or limited value and who decides which is used. Schmidt: Replied that the taxable market value can go up 15 percent above what it was the previous year, or 25 per- cent of the difference between the current estimated and the previous year's limited - whichever is greater. Melissa Thompson: Asked when the amount of the home valuation would slow down and how it is decided. Schmidt: Replied that market value is based on what homes are selling for. In this case, 150 feet of lakeshore is worth a lot and may be valued at $700,000 - $800,000 just for the land alone. Melissa Thompson: Stated that it keeps going up every year and property should not matter if it is on the lake and it seems like they are bearing the brunt of it because they live on the lake. Greg Thompson: Asked Councilmember Erickson how high the taxes are on Spring Lake. Erickson: Replied that he understands that it goes by what you could sell the home for and believes his valuation is in line with what he could sell his home for. Greg Thompson: Asked Councilmember Erickson if he would be alarmed if taxes tripled in three to four years. Erickson: Obviously. Greg Thompson: Noted that Nagel was less than cordial when questioned regarding the valuation and asked again if the increases would continue. Erickson: Asked if limitations would come into play if taxable market value tripled. Connors: taxable market value should not have tripled in that period of time based on the formula. Reiterated that he cannot address anything else but valuation at this public hearing and the market is set by properties that sell. Every time properties sell in the County, the valuation process has standards to be adhered to. Melissa Thompson: Commented on nearby property with 100 feet of lakeshore whose taxes only went up $400. Be- lieves the valuation is not in line with what Thompson's are paying. Connors: Asked for contact information as well as information Thompsons have comparing properties. Noted that the sale of a home does not come to the attention of the County until the property sale is complete. 4 City Council Meeting Minutes May 1, 2006 Draft Marilyn Revak, PID 251410390, commented on lack of response from the County. Stated valuation increased ap- proximately 30 percent and wondered if refurbishing in kitchen caused the increase. Mark Norris, PID R251430120, purchased house one year ago and valuation increased from $347,000 to $640,000. The marked value is listed at $60,000 more than the purchase price and part of the purchase price was for personal property that should not be part of the market valuation. Schmidt: asked what the purchase price was in April 2005. Norris: Responded that it was $585,000, which is a two percent increase per month, which seems excessive. Haugen: clarified purchase price and current assessed value and the valuation listed when it was purchase. Norris: Stated he has seen where market values go crazy and tax assessments go up in other areas and people are priced out of their homes. Hopes that will not happen in Prior Lake. Jerry Kraft, PID 252150230, noted he probably would not be at the public hearing if he had received responses to phone calls. Seeking clarification of why valuation increased 25 percent this year and nearly 25 percent last year. Connors: Replied that sometimes the increases have to catch up with the market rate. Kraft: Asked if assessor raised the valuation because taxes need to be raised. Schmidt: Replied that assessors value the properties, but have nothing to do with the taxes. Look at what the market is showing and try to be within 90 percent to 105 percent of the market. Woody Spitzmueller, PID R250330121, commented on no response to phone calls to the assessor's office. Believes there are disparities in assessed values as he is paying the same amount of taxes as those on a nearby property valued $100,000 more. Schmidt: Noted that it is possible the limited assessment would be in play, but it seemed like such a large gap. Will review it. Greg McClenahan, PID R254140010, distributed information to Councilmembers and identified that this property is income-producing property. Suggested the appraisal be based on income from the property using a capitalization proc- ess rather than the conventional appraisal techniques. Connors: Replied that the County's charge is to assess properties at the rate at which they would be put on the mar- ket. Cost, income and market are all approaches to market value. When doing an appraisal, the assessor looks at all three approaches and picks the one that should be given the most weight. In the case of apartment values, the asses- sor was unable to develop a reliable capitalization rate so used sales as that seems to be more valid based on informa- tion at his disposal. Asked council to affirm the value that the assessor's office set for the property. Earl Elster, PID R252360060, has lived here 13 years and believes trend with taxes is different than the real world. Believes market has changed, valuations are lowering and double-digit increases should not be occurring. Schmidt: Agreed that the market is slowing down. Much of that has taken place during the last half of 2005 and the first quarter of 2006. Assessors look at what market did during the year previous to January 2006 to base valuations and will do whatever the market shows they have to do. Harold Roberts, PID R25031 0120 and R250310111, lives on the lakeshore and questions if he could really sell his home for the amount it is valued at, but doesn't know how to figure that how. Asked County to help him learn the correct value and suggested that FAQ could go out with the assessment forms could include how valuations are done. Agrees that market may be decreasing, especially for high-valued homes. Lisa and Don Pampuch, PID R250330130, commented that his phone calls to the assessor's office had not been re- turned. Stated the valuation on their property was increased 50 percent on lakeshore property over past two years. Seems extreme. Evan and Jeanne Shadduck, PID R250280160, was unsure if he had to be at the meeting as he made a phone call indicating his appeal and would like it clarified whether the process required his attendance at the public hearing. Esti- mated market value on his property went up 66%. Connors: Explained the process of appeal. Said Shadduck had spoken to him and was on the list of appearance-by- notice which is given to the Council in the event Shadduck did not come to the meeting. Shadduck has preserved the right to go to County Board of Appeal and Equalization. 5 City Council Meeting Minutes May 1, 2006 Draft Shadduck: asked if an assessor will go to the home of each person who appealed, and if the Council would vote in two weeks. Connors: Affirmed the Council will vote at the next meeting and everyone who appeared tonight will be contacted by the assessor's office. Boyles: Commented that the City Council will receive a written report from the County that discusses each of the prop- erties represented at this public hearing. There will be a recommendation to either sustain or modify the valuation. The City Council will act on the recommendation. If an individual disagrees with the Council action, he or she has the option to appeal at the County level. Shadduck: Asked if the Council vote would be on a parcel-by-parcel status or the whole docket. Boyles: Replied it would be voted on in totality. Wes Mader, PID R250980060, concem originated in 2004 when Cytex Data Corporation listed his property as the high- est assessed value on the street. A realtor provided comparable value homes and Mader learned his tax bill was 50 percent more than the average of the other homes. County conducted an appraisal in 2005. Believes there is an error in the appraisal due to the combination of two lots of lakeshore frontage resulting in being assessed for the smaller lot twice. Believes adjustments should be made for a detached garage, having to go down steps to reach the home, hav- ing a sanitary sewer lift station near deck in backyard, and neighborhood maintenance of the street (rather than the City) all of which reduce market value. Submitted letter. Bruce Ulrich, R250360010, commented that he left three messages and just received a reply this aftemoon. Built house on the lake eleven years ago. Taxable market value went up 66.8 percent from $375,000 to $625,700 in one year. Believes that is excessive. Would like to know com parables of neighbors. Chad Gordon, 3151 Wild's Ridge, 12 PID numbers. Wants to discuss some classifications and some other acreage on the golf course. Schmidt: Listed the names and PID information from letters the County received which should be included as part of the appeal. Kiet Lan Tran Debra Hayes Todd Fasking Derek Walgrave Evan Shadduck Gerry Berens Jill Adam Jerry Glazer PID 252360110 PID 251320160 PID 253120050 PID 254040440 PID 250280160 PID 259010085 PID 252970420 PID 253380050 MOTION BY LEMAIR, SECONDED BY DORNBUSH TO CLOSE THE PUBLIC HEARING. VOTE: Ayes by Haugen, Dombush, Erickson, LeMair and Millar. The motion carried and the public hearing closed at 9:36 p.m. Comments: LeMair: Expressed annoyance that residents did not receive responses from the County resulting in them having to come to the public hearing when their concems could possibly have been resolved. Asked when the assessor's office knew that two individuals were leaving their positions, and who is in charge of the department. Noted that Schmidt and Connors took the responsibility and blame for others who did not do their job. Schmidt: Replied that Amoldi gave notice of retirement in December and Nagel gave notice of resignation two weeks ago. Agreed that residents should have been contacted a long time ago and assured the Council that it would not hap- pen again. Named Kevin Ellsworth as head of the Finance Department. Erickson: Noted that the City contracts with Scott County making it guilty by association, and the non-responsiveness reflects poorly on the City. Asked if there should have been someone in the City for people to contact. 6 City Council Meeting Minutes May 1, 2006 Draft Millar: Noted that the City is looking at setting standards of excellence for customer service in the City, and asked if the County could have hired more people to meet this demand. Schmidt: Replied that they have wanted to hire more people for six years. Connors: Noted that neither Schmidt nor he is offering excuses, and offered the audience the suggestion that if their calls are not being responded to, they should call the general County number and state they are not getting a response. Millar: Confirmed that the County is making a commitment that this will not happen again. Schmidt: Agreed. Connors: Agreed and stated that the County is supposed to be serving the people. Dornbush: Commented that many of people were sitting at the public hearing for a long time because of a customer service glitch. Erickson: Commended both Schmidt and Connors for taking the heat. Noted that people commented that property values are going up dramatically and stated that just because valuation going up, does not mean taxes are going up. If cost of running the City stays the same, taxes would not go up; and the cost of running the City is the Council's respon- sibility. Haugen: Commented that assessors should continue to seek faimess for similar properties that are assessed differ- ently, and when properties are escalating more than the norm, such as lakefront property, they should be able to ad- dress why. Stated that transition planning in the assessor's office should have been better. Noted that a valid appeal for a property owner wishing to contest his valuation should be in writing or in person at the meeting and the appeals process does not indicate that a phone call implements a valid appeal. Schmidt: Stated the County had received letters. Connors: Noted that at least one person on the list did not provide a letter; and that past practice has been that if con- tact by phone was made prior to the appeal, it has been allowed. If Council does not want that to continue, let him know. Haugen: Replied that the City wants to be consistent with other governmental entities and that communications need to be accurate. Pace: Read from page nine of the document entitled, The 2006 Prior Lake Assessment, "If a person fails to appear in person, by counsel, or by written communication before the Local Board of Review, that person may not appear before the County Board of Equalization for a review of the assessment or classification. II Suggested an amended policy so everyone is treated fairly. Haugen: Stated that the Council will await the formal report. RECESS Mayor Haugen called for a recess at 9:52 p.m. RECONVENE The meeting reconvened at 10:05 p.m. OLD BUSINESS: Consider Approval of a Request for Time Extension for the Execution of a Development Agreement for the Franklin Trail I Park Nicollet property. This item was removed from the agenda. NEW BUSINESS: Consider Approval of a Position Statement Regarding Spring Lake Township Proposed Comprehensive Plan. Planning Director Kansier outlined the six principles of the Spring Lake Township plan. Comments: Millar: No comment. 7 City Council Meeting Minutes May 1, 2006 Draft Dornbush: No comment. LeMair: Asked if the Metropolitan Council approved the change in parcel size to 1.5 acres. Kansier: Affirmed. LeMair: Commented that 2.5-acre parcels are more feasible but will support it. Erickson: Asked if this would affect the orderly annexation process. Kansier: Replied that this is outside the annexation area. Haugen: Noted that the annexation agreement includes a commitment to support the Spring Lake Township compre- hensive plan. MOTION BY LEMAIR, SECONDED BY DORNBUSH TO APPROVE RESOLUTION 06.063 SUPPORTING THE SPRING LAKE TOWNSHIP PRINCIPLES GUIDING DEVELOPMENT SOUTH OF 180TH STREET FOR INCLUSION IN THE SCOTT COUNTY 2030 COMPREHENSIVE PLAN UPDATE. VOTE: Ayes by Haugen, Dombush, Erickson, LeMair and Millar. The motion carried. Consider Approval of 2005 Annual Financial Report and Management Letter. City Manager Boyles informed the Council that the audit was completed by Abdo, Eick and Meyers and introduced Steve McDonald to report the results of it. McDonald went over the highlights of the financial report and stated there were no instances of non-compliance. Complimented Finance Director Teschner for good planning and retaining a good reserve balance. Comments: Erickson: Asked how fund reserves in water and sewer work into water treatment building and whether there would be bonding to pay for the building. Teschner: Replied that fund reserves are similar to excess funds in that it is operating cash that the Council can des- ignate for expenditures related to the water and sewer fund. Anticipated water treatment building bonds will be ten mil- lion dollars with two million dollars planned for the ground storage facilities. On-hand cash will be used for sewer and water replacement on street reconstruction projects. No street reconstruction is planned for this year, but money is allo- cated for CR 82. The City is building up reserves from a low point after purchasing an automatic meter reading system and replacing old water meters two years ago. LeMair: Thanked Teschner and congratulated him on another well-done year. Dornbush: Concurred with LeMair and noted the City has a good cash flow and good reserves. Millar: Concurred with previous remarks. Haugen: Agreed that when the City can make the investments in infrastructure in a prudent manner, it is a good report card from the outside and reflects well on the guidance the Council receives. MOTION BY MILLAR, SECONDED BY LEMAIR TO ACCEPT THE 2005 ANNUAL FINANCE REPORT AND MANAGEMENT LETTER AS SUBMITTED. VOTE: Ayes by Haugen, Dombush, Erickson, LeMair and Millar. The motion carried. Consider Approval of a Resolution Authorizing the Mayor and City Manager to Execute a 2006.2008 Labor Agreement Between the City of Prior Lake and Teamsters Local 320 Representing Police Sergeants. Assistant to the City Manager Meyer outlined the changes in the proposed agreement. Comments: Millar: Believes law enforcement is a hard and dangerous job and the City should do its best to compensate them. Three percent wage adjustment each year is in alignment. Dornbush: Will support. LeMair: Will support. 8 City Council Meeting Minutes May 1, 2006 Draft Erickson: Asked if proposed salaries are based on metro cities of similar size and if a comparison is reviewed at each contract renewal period. Meyer: Confirmed that similar cities are contacted to leam current comparisons. Erickson: Asked if comparisons are made on a percentage increase or amount of salary. Meyer: Replied it is done on percentages. Boyles: Commented that the City considers both the percentage of increase and the actual salaries as well as what other cities do from year-to-year to progress their salary structure. Haugen: Stated the proposal is competitive, fair and consistent with other contracts; and that he likes the three-year length of contract. MOTION BY MILLAR, SECONDED BY DORNBUSH TO APPROVE RESOLUTION 06.062 RATIFYING THE 2006-2008 LABOR AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT EMPLOYEES' UNION, LOCAL NO. 320 REPRESENTING POLICE SERGEANTS. VOTE: Ayes by Haugen, Dombush, Erickson, LeMair and Millar. The motion carried. OTHER Community Events Millar: Commented that the Firemen's dance the past weekend was well attended, and that St. Michael's Aprilfest was also held over the past weekend. Dornbush: South Metro Chorale performed at Shepherd of the Lake last weekend. Erickson: Steamed Heat is playing at the VFW the coming weekend. Haugen: The Senior Luncheon was held today, and the 17th annual Rotary DARE Bike-a-thon will be held on the com- ing Saturday. Premiere Dance Academy will hold ballroom dance instructions on May 13. June/July City Council Meeting Schedule Boyles: Reminded the Council that the new hours of meeting at 5 p.m. for the work shop and 6 p.m. for the City Coun- cil meeting would begin on May 15. Suggested the June 19 meeting be moved to June 26 because the City Council typically does not meet over the July 4 holiday week. Kansier: Noted that the Planning Commission usually meets on June 26 and she will try to arrange that meeting for June 19. Erickson: Asked if the June agenda could remain as usual and just skip the first meeting of July. Haugen: Replied that the Council prefers not to have the length of time of a whole month without a meeting. ADJOURNMENT With no further comments from Council members, a motion to adjourn was made by Dornbush and seconded by Millar. With all in favor, the meeting adjourned at 10:40 p.m. Frank Boyles, City Manager Charlotte Green, Recording Secretary 9