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HomeMy WebLinkAboutAgenda & Minutes '. AGENDA Date: January 5, 1998 1. CALL TO ORDER................................................................................7:30 p.m. 2. A) PLEDGE OF ALLEGIANCE: B) OATH OF OFFICE: . Mayor Wes Mader Councilmember Jim Petersen Councilmember Pete Schenck . . 3. CONSIDER APPROVAL OF PREVIOUS MEETING MINUTES: A. December 3, 1997 Truth in Taxation B. December 15, 1997 Regular City Council Meeting 4. CONSENT AGENDA: A. Consider Approval oflnvoices to be Paid. B. Consider Approval of Resolution 98-XX Overturning the Decision of the Planning Commission Denying A Variance Request By Brian Mattson to the Side Yard Setback for Driveway and Impervious Surface for Property Located at 16575 Inguadona Beach Circle. C. Consider Approval of Resolution 98-XX Authorizing The Execution of the 1998 Joint Powers Agreement for Traffic Markings, Street Sweeping, Crack Sealing, and Seal Coating. 5. PRESENTATIONS: A. Consider Presentation by Hillcrest Home Representatives Supporting an Appeal from the Decision of the Zoning Officer Relating to Bluff and Top of Bluff. 6. PUBLIC HEARINGS: A. Public Hearing on the Implementation and Results of an Economic Development Grant from the Minnesota Department of Trade and Economic Development and Transmitting Semiannual Progress Report. B. Tax Increment Financing Hearings to Consider: 1) Approval of Resolution 98-XX Approving Modification of Tax Increment Financing District 2-1 Relating to Keyland Homes 2) Approval of Resolution 98-XX Approving Modification of Tax Increment Financing District No. 2-6 Relating to NBC Products, Inc. 3) Approval of Resolution 98-XX Approving the Creation of Tax Increment Financing District 2-9 Relating to Roberts Foods. 162G'hd@gle Creek Ave. S.L Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQL:AL OPPORTUNITY EMPLOYER I 7. OLD BUSINESS: A. Consider Approval of Resolution 98-XX Authorizing Award-of-Bid for 4WD Articulating Tractor and Attachments. B. Consider Approval of Report on 1997 Directives. 8. NEW BUSINESS: A. Consider Approval of Appointments and Bylaw Revisions for 1998 B. Consider Approval of 1998 Fee Schedule C. Consider Approval of Resolution 98-XX Supporting the Southwest Metro Groundwater Work Group's Efforts in Seeking Legislative Financing For Implementation of The Data Collection and Assessment Plan D. Consider Approval of Resolution 98-XX Approving the Preliminary Plat For "Red Oaks Second Addition". E. Consider Approval of the Schematic Planned Unit Development to be known as Glynwater to Allow 122 Townhouse Units. 9. ITEMS REMOVED FROM CONSENT AGENDA 10. OTHER BUSINESS: 11. ANNOUNCEMENTS/CORRESPONDENCE 12. ADJOURNMENT 1598.DOC PRIOR LAKE CITY COUNCIL MEETING DECEMBER 15, 1997 7:30 P.M. 1. CALL TO ORDER: The meeting was called to order at 7:30 p.m. Present were: Mayor Andren, Councilmembers Kedrowski, Mader, Robbins, and Schenck, City Manager Boyles, City Attomey Pace, Assistant City Manager Woodson, Finance Director Teschner, Parks and Recreation Director Hokeness, Planning Director Rye, Planner Tovar, City Engineer Ilkka, Recording Secretary Oden. · Mayor Andren asked how many people were in attendance for the Beach Lane Public Access Issue. She said there was a suggestion that the agenda be taken out of order, item 7B before 7 A because of the number of people in attendance. There was no objection, so she said item 7B would be heard right after presentations. 2. PLEDGE OF ALLEGIANCE: Mayor Andren led the Pledge of Allegiance and welcomed everyone to the meeting. 3. CONSIDER APPROVAL OF PREVIOUS MEETING MINUTES: MOTION BY KEDROWSKI SECOND BY ROBBINS TO APPROVE THE MINUTES OF THE DECEMBER 1 CITY COUNCIL MEETING. Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck, the motion carried. 4. CONSENT AGENDA: a) Consider Approval of Invoices to be Paid. b) Consider Approval of Treasurer's Report. c) Consider Approval of Animal Warden Reportfor November, 1997. d) Consider Approval of Fire Call Report for November, 1997. e) Consider Approval of Building Permit Report for November, 1997. f) Consider Approval of Cigarette License Renewals. g) Consider Approval of Resolution 97-108 Abating Special Assessments on DNR and Post Office Property. h) Consider Approval of Resolution 97-110 Concurring with Scott County's Designation of Portions of County Roads 21,42,82, and 83 as County State Aide Highways. i) Consider Extension of Time to Acquire Appropriate Permits for Variance Approved October 1997 for Kelvin Retterath on behalf of David Yearling and Karlynn Benson on Property Located at 16697 Inguadona Beach, Case File #96-098. . j) Consider Approval of Hillcrest Appeal to Decision of Zoning Officer Regarding Bluff and Top of Bluff. · Councilmember Mader asked that items G and H be removed from the Consent Agenda for discussion after New Business. MOTION BY KEDROWSKI SECOND BY SCHENCK TO APPROVE CONSENT AGENDA ITEMS A, B, C, D, E, F, I and J. Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck, the motion carried. 16200 Eagle Creek Ave. S.E., Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 44I7-424S AN EQUAL OPPORTUNITY EMPLOYER 5. PRESENTATIONS: a) Consider Reportfrom EDA President Bob Barsness and Advance Resources Consultant Roger Guenette Regarding Waterfront Passage Business Park Proforma. . Bob Barsness, President of the Economic Development Authority, introduced the item. He said the three proposals already approved by the Economic Development Authority would be coming before the City Council in January which would make the Waterfront Passage Business Park complete. He said the City's Business Park had done more than break even fmancially, and the goal of build-out in ten years was cut in half. . Roger Guenette of Advance Resources for Development said he had the opportunity since the inception of the Waterfront Business Park to work with the Council, EDA, and Staff in marketing and negotiating purchase agreements for each parcel. He said there were some factors in the City's favor in terms of continued population growth and expansion. Five years ago, the property was in the condition of a swamp and the likelihood of being developed was low. It was through the efforts of the redevelopment committee, the EDA and the City that the acquisition of the infrastructure and investment was made. His memo outlines the projected expenses and revenues associated with the business park assuming build-out. He said there will be 196,900 square feet of facilities in 1998. The minimum real estate tax generation is $315,000 yearly. The minimum jobs created and retained is 177. The estimated annual payroll is $4.5 million, and the projection for revenue in excess of expenditures for the City is $883,000. That does include the assumption of continuation of tax income stream, which is conservative. There will be valuation increases occurring on commerciaVindustrial properties next year and also additions to some of the existing facilities that are out there. There will be some expansion beyond what is identified. It does include from a proforma perspective anticipated receipt of a $200,000 grant from the Minnesota Department of Trade and Economic Development. He said the last increment would flow into the City in 2009. The increment collections by the City and EDA will be approximately $833,000. . Mayor Andren asked what the first year businesses would start coming offTIF? . Consultant Guenette said 2003, and then one to two businesses per year thereafter. . Councilmember Mader asked about the spreadsheet summary, net City costs of $1.8 million, whether that was the total net including interest. . Consultant Guenette said that represented the costs that are actual for the improvement, land purchase, mortgage and bond interest, and estimated LGA local contribution. There were some additional soft costs/ miscellaneous costs. . Councilmember Mader asked about the number $1.18 million on the spreadsheet, should it be added to the $1.125 million above? . Consultant Guenette said under the first subtotal of Land Sale Summary, $1.15 million represents City Land purchase costs in addition to soil corrections that they had undertaken less the net sale proceeds. If the $616,000 down payment plus $70,109 and $17,332 were added back to the $1,125,000 it comes up to the range of$1.8 million. Additionally, there are miscellaneous costs of $66,128. The grand total ofTIF reimbursement represents a deduct of the Land Net Sale Proceeds. . Councilmember Robbins asked to what did they attribute the unexpected success? 2 · Consultant Guenette said fIrst, the EDC, BDC, EDA and City all came together to confront the issue that Prior Lake did not have any quality space for commercial/industria.! de'v'elopment. They took the risk to make the investment on a piece of property that would not have been a private developer's fIrst choice. TIle economic conditions were positive, and that helped the rest. 6. PUBLIC HEARINGS: a) There were no public hearings. 7. OLD BUSINESS: a) 7B: Consider Approval of Recommendationfrom Lake Advisory Committee Regarding the Proposed Status of Shady Beach Trail (Beach Lane) Public Access and Conduct a Public Information Meeting to Solicit Public Input. · City Manager Boyles said he received a fax at 4:30 from the attorney representing the Sportsman's Club regarding the access. He recommended that the Council take public input on the recommendation, but not act on it until City Attorney Pace was able to review the documents. He said the City Council's task was to determine if Shady Beach should remain as a public access or be designated a vista, or become a winter-only access, or be closed altogether. The Beach Lane Access was reviewed. The Council understood that the Sportsman's Club held an easement on the property, so the Council believed that the appropriate action was to allow the property to be operated by the Sportsman. Then some property owners' attorneys indicated there was not a valid easement. This was verifIed, and so the process must be repeated. If indeed it is puhlic property, then it must be determined what it will be used for. The LAC has conducted several meetings regarding the issue. The LAC has outlined three options. One short term solution would be to provide pole gates that could be opcned and closed by the Police Department, to keep the access closed beh.veen 10:00 p.m. and 6:00 a.m. The Sportsman's Club would assume no responsibility for operation. The long term solution would be to have the Parks Department explore Sand Point Park for improved winter access. The concern there is that the park is substantially higher than the lake, so there is an 8% grade between the shore and getting up to Crest A venue. The recommendation for the long term is that the City revise that access so that the grade was substantially less. Beach Lane access would then revert to a vista. Two other options are to continue the use of Beach Lane as an access, or to vacate the access and allow people to use Sand Point Access as the only access on that side of the lake without improvements. He said h.vo years ago, the City invested substantially into Sand Point Park with bituminous drive and parking lot. · Mayor Andren asked if members of the public wished to comment. She said the Council would not plan to take action this evening. · Todd Nelson on Franklin Circle, a member of the Sportsman's Club addressed the Council. He said the past tlrree months the Sportsman's Club had met with the LAC, and thc last motion was to widen the Beach Lane access. · Dr. Harry Elkhorn 14283 Shady Beach Trail said he appreciated the discussion and the opportunity to speak. He said safety, fInancial, and courtesy were issues for the access. He said a traffIc survey was conducted last summer and 1,200 cars per week utilized the access. He said up to 36 cars per evening between the hours of 11 :00 p.m. and 6:00 a.m. used the access. He said with that many cars utilizing the access which may be ul1familiar with the neighborhood, what plans did the City have for 1) sidewalks, 2) streetlights west of Shady Beach Trail, 3) yield or stop sign by the access, 4) reconsider speed limit? Financially, the access traffIc represents 50% of the total traffIc in the residential area. Will the City give the homeowners special fmancial consideration when the street needs to be repaired or replaced? Finally, in common courtesy, the honor system asked people not to use the access between 11 :00 p.m. and 6:00 a.m. There was still 3 up to 36 cars per evening. There is a visual and sound disturbance in these hours. Cars park along the shore with their headlights facing the homes. · Mayor Andren said she wanted to address the concerns of the gentleman who spoke previously. She said on May 23, 1997, the Lake Advisory Committee visited the Beach Lane Access. At that time a motion was made to widen the access by removing a large tree and moving a post. At a subsequent meeting on August 20, 1997, the LAC amended the motion to add that the Shady Beach Access remain in public use. Then at the November 17th meeting, the LAC had the Sportsman's Club and the neighbors in to discuss the issue with them. On December 4, 1997, the neighbors and the Sportsman's Club met with the LAC and discussed the nine alternatives, including the solutions in front of the Council were brought up. Short term solution Was a gate and another long term was to have the Parks Department explore Sand Point for an access. · Keith Randall 14112 Bayview Circle said he lived up the block from Shady Beach Trail and the problem began about two weeks ago with the ice fornling. The neighborhood took influx of drivers. At 8:00 a.m. and about 3:00 p.m., there are kids getting off the bus and walking up and down Bayview. Many of the cars are too fast. The concerns are more for the safety. · City Attorney Pace said she did have the opportunity to read the letter from the Sportsman's Club's attorney and she was prepared to address it. She said after reviewing the previous documents attached to the staff report and the new letter received from William Peterson representing the Sportsman's Club, there was nothing new provided in the letter. The opinion remained that the Sportsman's Club's quit claim deed is not valid. · Mr. Randall said 30 does that mean the City has responsibility for liability and maintenance of the property? · City Attorney Pace said under Minnesota Statute 466.06, the liability for the City under recreational land is limited. But the regulation of the land is under control of the City. She said it was also the title opinion issued by Huemoeller and Bates that the land is encumbered by the rights of the public in that portion of the plat of Shady Beach donated and dedicated. · Wendy Starr of Bayview Circle addressed the Council. She said the traffic was a major issue for the children. The neighborhood people knew where to slow down. · Dr. Elkhorn asked if the Council could vote this evening on putting up a gate between the hours of 11 :00 p.m. and 6:00 a.m. · City Manager Boyles said the Council could take action on the issue. · Tom Ler of 5651 Woodside Road addressed the Council. He said he was a member of the Sportsman's Club. The traffic problems would just move to another neighborhood. That could be addressed by the police department. 1be Sportsman's club is willing to work with the City to put up tree barriers to improve the access. It was dedicated for public use. · Wayne Swemby of Shady Beach Trail said he had lived in the neighborhood for 18 years and the issue had not been addressed. He said the land was probably deeded for public access, meaning to water the cows in the lake back in the 1800's, not to be driven on. It was for a cow access, not for cars. He said use conunon sense. · City Attorney Pace said her recollection of the new Park Ordinance was the defmition of a Park was all public property used for recreational purposes whether or not it is labeled as a park. In the ordinance, they restricted the hours of operation to close between 10:00 p.m. and 6:00 a.m. except some specific parks that remain open until II :00 p.m. because they are lit. She said then the use of 4 this property would already be restricted and closed between 10:00 p.m. and 6:00 a.m. Using winter vehicles to gain access to the lake, the department would designate specific locations for lake access. She said this area had not been designated for such use. She asked if that was Parks and Recreation Director Hokeness' recollection. · Parks and Recreation Director Hokeness agreed. He said the ordinance exempted Sand Point. He said in the broad sense of the ordinance the City could deem pieces of City property as recreational areas and then they would be designated as parks areas even without a sign. He said they could put barrels out, but the neighbors did not want them. · Mayor Andren reviewed the options set forth in the agenda report. MOTION BY KEDROWSKI SECOND BY TO HAVE THE SHADY BEACH ACCESS CLOSED FROM 10:00 P.M. TO 6:00 A.M. AND HAVE CITY STAFF LOOK AT THE LONG TERM SOLUTION AS SAND POINT PARK FOR AN ACCESS. · The motion died for lack of a second. · Councilmember Schenck said the concerns were excess traffic, the plight of the neighbors, the Sportsman's Club was environmentally conscious, and mitigation of a solution should be worked toward. There should be a solution agreeable to all parties. Shady Beach Trail was also an access for the fire department and squad cars. The neighbors have been very cooperative with the Sportsman's Club. He said the Sportsman's Club is not the residents causing problems in the access and the neighborhood. He said the trash issue was brought up. The Sportsman's Club picked up trash around the access. He said he supported the gate and the staff should look at Sand Point Park as a long term solution. · Councilmember Mader said the indication he had heard was traffic and safety of children. He said the gate between 11 :00 p.m. and 6:00 a.m. would not address the concern. The perception is that that is not the main issue, it is safety in the daytime. There is a reference that the police department may not want to pursue the operation of the gate. The safety issue has not been addressed. He suggested that the staff have more time to look at the issue and look at the letter that came from the attorney. He said he would not support putting a gate up tonight because it does not address the main concems of the neighborhood. · Councilmember Robbins said her concern about considering permanently closing the access was that no other alternatives to get fish houses off the lake existed. She said it was necessary to leave it open until another alternative was available. She said if putting up a gate was the only short term alternative, she would support that. She said she had a question of the status of the property. Ifit was closed, making it an overlook or something, it could be an overlook if vacated because it was dedicated as public. · Mayor Andren said the question of the status had been going on for years. She said it was an inappropriate access to be in a neighborhood. The Sportsman's Club had taken responsibility for it. She said the Police Department had enough to do and that would not be number one on their to do list. She said she did not know why someone could not sit down with the DNR and come up with a way to use Sand Point as an alternative. She said she agreed it was not the Sportsman's Club causing problems. She would support the recommendation. MOTION BY KEDROWSKI SECOND BY ROBBINS TO ACCEPT THE RECOMMENDATION OF THE LAKE ADVISORY COMMll1J~E AMENDING IT TO MAKE THE CLOSING OF THE ACCESS GATES FROM 10:00 P.M. TO 6:00 A.M. AND MAKE THE ACCESS 2 GATES ONE IN FRONT AND ONE IN BACK AS A SHORT TERM SOLUTION 5 FOR ONE SEASON THIS YEAR AND HA VE A LONG TERM SOLUTION CONSIDERED BY STAFF JOINTLY EXPLORING WITH DNR AN ALTERNATIVE ACCESS POINT. . Parks and Recreation Director Hokeness said it would require two gates, because when people came down Sand Point and came back around and come out of the access, so they would be stopped at the road at a gate in the narrow roadway, and the gate would be pushed over an broken up. . Councilmember Kedrowski asked when the officers changed shifts. . Police Chief O'Rourke said they changed at 3:30 p.m. and at night, so if they were not held to that specific time that would be OK. He said it would depend upon the priority of other calls. . Councilmember Mader said the motion did not address the main issue of safety on the roads during the daytime hour. Also the motion that was made was short and long term solutions and he would not support it because it would be better for staff to spend more time on it. . Councilmember Kedrowski said it works toward the goal. . Mayor Andren called the question. Upon a vote, ayes by Andren, Kedrowski, Robbins, and Schenck, nay Mader, the motion carried. b) 7B Consider Approval of Resolution 97-109 Adopting 1998 Prior Lake Budgets and Certifying Final 1998 City of Prior Lake Property Tax Levy to Scott County Auditor. . City Manager Boyles introduced the item. . Councilmember Mader asked for a cost estimate over the past two years for consultant costs. . Finance Director Teschner said it was spread over a number of categories. There is the General Operating Budget and Capital projects with a number of dollars for consulting engineers, which varies by construction activity for the year. A guess on general fund related would be close to $200,000 within the proposed 1998 budget. That is a guess. . Councilmember Mader asked what was in the budget for legal fees for next year. . Finance Director Teschner said the legal fees are General Legal Services and Prosecution. The General Legal Service is $148,000 and in Prosecution, which is part of the Joint Powers Agreement is $84,600. So the total is $232,600. The $84,600 is not consulting fees because we have hired the individual and share the costs with other cities. MOTION BY MADER TO AMEND THE LEVY WITH A SIX PERCENT REDUCTION. . Mayor Andren asked a six percent reduction of what? . Councilmember Mader said of the proposed levy. . Mayor Andren asked what he would want to cut. . Councilmember Mader said he did not need to defme that for the levy specifically. . Mayor Andren said almost all of the levy increase was the Parks Referendum. 6 · Councilmember Mader said he wanted to accomplish a lesser tax burden on the citizens. He said there were a number of actions within the City which represent expenditures that did not add anything to the quality of life in the City. He said they could reduce the levy and provide services. · Mayor Andren said that a 6% reduction would be $171,752. A 5% levy reduction would be for people with an $85,000 home $1.45 per month; a $100,000 home would save $1.89; $120,000 would save $2.48; $150,000 would save $2.36 that almost gets us to a Happy Meal; $175,000 home would save $4.10; and the ones that actually really do benefit from the decrease are the homes that are in excess of $300,000 and $500,000 who would save $7.70 per month at 5% and $13.69 at 10%. It seems that if the City cut a number of services it would have a great impact, and the cut would benefit those in a higher income bracket not those who would be in more moderate circumstances. She said she did not think the $1.45 per month saved would even get close to getting them a coke at the local fast food place. However, for a reduction in services, she said she would like to know what those people would be losing. · Finance Director Teschner said the Council would have to give that direction. He said there were an infinite variety of combinations of cuts that could be made if the Council wanted the level of service reduced. Staff has identified areas where they try to distribute cost cutting on an equitable basis across departments rather than in anyone specific area, so he could talk about that. He said with respect to the $4.5 million bottom line levy, there were portions that could not be cut. There is about $1.5 million worth of supporting resolutions that have been filed at the County auditor's office that supports debt. Several of the bond issues that have financed capital improvement projects in addition to the referendum and had to be filed at the auditor's office for collection. In terms of the levy, $3,129,000 that is associated with the proposed operating budget for 1998. The other debt levies are legally supported by resolutions, otherwise bonds could not have been issued. He wanted to make sure the Council knew the $3.1 million was what they could control because the rest is reserved for debt repayment. · Mayor Andren asked if there was a second. The motion died for lack of a second. · Councilmember Mader said there was a concept that taxes could only go up. He said while the City has said they are not increasing property taxes, his taxes went up $300 this year. He said he talked to others whose taxes went up. He said it would be easy to point at some expenditures that have not been cost effective, and said the audiovisual equipment for the Council Chambers was an example. He said the neighborhood park signs were another example. He said the only way to get there was to establish a belt-tightening budget otherwise Prior Lake would continue to be one of the highest taxed communities in the state. · Mayor Andren asked whether the Parks Referendum was the majority of the levy increase. · City Manager Boyles said yes. · Mayor Andren said also an increase in valuation or reclassification of property would cause an increase in taxes. · Finance Director Teschner said according to the County Assessor's calculation, assuming a 2% market value adjustment, t.here would be no increase in property taxes associated with budget outside the scope of the referendum levy. The compression of the tax rates approved by the legislature also had an impact on the property taxes payable in 1998. The average increase was about $80 as far as the referendum on a $127,000 home. · Mayor Andren said for the last two years the City Council has adopted budgets that have had a zero percent tax impact. That is nothing to apologize for. As long as she has been here, the 7 majority of the budgets, except 2, one when they took $400,000 of state aid from the City and gave it to the School District, there was an increase in taxes. Some years reflected a decrease. There was one year with a 6.1 % increase because of the frugality in the past. She said she was tired of the insinuation that the City Council was wasting taxpayers money. She said the City Council a number of years ago platted 1,600 lots, and there was going to be additional income. Prior to that the Building Permits ranged from 50 to 80 per year. Last year there were 250 building pennits. The Council has always stayed within the budget. If there were lean years, the Council did nothing, but when they started getting the increase in revenue from the building permits, then thc City could provide additional services that the public has requested. She said she did not want to hear how the Council should be ashamed because it generated a budget that requested a 0% tax increase. She said staff has been diligent and has given the Council a budget reflecting the needs of the City and they were fortunate to be in a situation with a 0% tax increase and still maintain the level of service they had maintained. She said had people not wanted to spend that much on Parks, it would not have gone through. She said there will not always be that many building permits. Instead, the City had the foresight to put some money into funds from new construction so it does not have to raise taxes. . Councilmember Schenck asked about the contingency reserve, whether it was part of the 30%. . Finance Director Teschner said no, the contingency account and the fund balance were separate. The fund balance was established by Council resolution at 30%, which is close to $2 million. The contingency within the operating budget this year at $100,000 for 1998 or $50,000 less than 1997. . Councilmember Schenck asked if the recommended a different standard? . Finance Director Teschner said the auditor's recommendation was that the City be at 40-45% on a fund balance basis long term to fund not only working capital but build the cash position of the City up so that it could fund specific projects on a funding basis as opposed to using current property tax levies. The auditor is saying that is better than going below the 30% the Council is at. There is not an absolute standard. The highest in the state auditor's report is 185%. This year Prior Lake had only $150,000 of the fund balance left beforc receiving the first half of the property taxes. 30% is adequate. It is based on a growth figure not past figures. He said two big components, the Parks and Library Referendum and the Transit Levy, together are over $800,000 of the levy. In the future, when it comes to comparing with surrounding communities, Prior Lake may look negative because other communities opted out of the transit levy. The tax effort was transferred to a different governmental entity. That $800,000 amounts to nearly a 25% levy increase. That should not be lost in the analysis. . Councilmember Schenck asked if the City could control the amount of the transit levy, and ifit would cost the taxpayers more if turned over to the Met Council. . Finance Director Teschner said yes, but Prior Lake would still compare on a higher scale. On an annual basis they can decide to retain or drop out of the program. . Councilmember Schenck asked about the City of Cambridge. . Finance Director Teschner said Cambridge invested large amounts in infrastructure, and the projected growth did not happen. They did not have the tax resources to pay their debt service. Some developers failed to pay special assessments, and Cambridge overextended itself. . Councilmember Mader said he talked to the State Auditor's Office and they went through the audit report with him. He said he would encourage Councilmembers to get a copy of it. 8 majority of the budgets, except 2, one when they took $400,000 of state aid from the City and gave it to the School District, there was an increase in taxes. Some years reflected a decrease. There was one year with a 6.1 % increase because of the frugality in the past. She said she was tired of the insinuation that the City Council was wasting taxpayers money. She said the City Council a number of years ago platted 1,600 lots, and there was going to be additional income. Prior to that the Building Permits ranged from 50 to 80 per year. Last year there were 250 building permits. The Council has always stayed within thc budget. If there werc lean years, the Council did nothing, but when they started getting the increase in revenue from the building pcrmits, then the City could provide additional services that the public has requested. She said she did not want to hear how thc Council should be ashamed because it gcnerated a budget that requestcd a 0% tax increase. She said staff has been diligent and has given the Council a budget reflecting the needs ofthe City and they were fortunate to be in a situation with a 0% tax increase and still maintain the level of service they had maintained. She said had people not wanted to spend that much on Parks, it would not have gone through. She said there will not always be that many building permits. Instead, the City had the foresight to put some money into funds from new construction so it does not have to raise taxes. · Councilmember Schenck asked about the contingency reserve, whether it was part of the 30%. · Finance Director Teschner said no, the contingency account and the fund balance were separate. The fund balance was established by Council resolution at 30%, which is close to $2 million. The contingency within the operating budget this year at $100,000 for 1998 or $50,000 less than 1997. · Councilmember Schenck asked if the recommended a different standard? · Finance Director Teschner said the auditor's recommendation was that the City be at 40-45% on a fund balance basis long term to fund not only working capital but build the cash position of the City up so that it could fund specific projects on a funding basis as opposed to using current property tax levies. The auditor is saying that is better than going below the 30% the Council is at. There is not an absolute standard. The highest in the state auditor's report is 185%. This year Prior Lake had only $150,000 of the fund balance left before receiving the first half of the property taxes. 30% is adequate. It is based on a growth figure not past figures. He said two big components, the Parks and Library Referendum and the Transit Levy, together are over $800,000 of the levy. In the future, when it comes to comparing with surrounding communities, Prior Lake may look negative because other communities opted out of the transit levy. The tax effort was transferred to a different governmental entity. That $800,000 amounts to nearly a 25% levy increase. That should not be lost in the analysis. · Councilmember Schenck asked if the City could control the amount of the transit levy, and if it would cost the taxpayers more if turned over to the Met Council. · Finance Director Teschner said yes, but Prior Lake would still compare on a higher scale. On an annual basis they can decide to retain or drop out of the program. · Councilmember Schenck asked about the City of Cambridge. · Finance Director Teschner said Cambridge invested large amounts in infrastructure, and the projected growth did not happen. They did not have the tax resources to pay their debt service. Some developers failed to pay special assessments, and Cambridge overextended itself. · Councilmember Mader said he talked to the State Auditor's Office and they went through the audit report with him. He said he would encourage Councilmembers to get a copy of it. 8 . Councilmember Kedrowski said the transit levy was mandated by the state. The City retains greater control of the levy if it levies instead of the Met Council. Prior Lake gets those dollars back in actual community service. The Metropolitan Council allocates the dollars back to the City. He said he made the motion to adopt this budget, which they have discussed for over seven months. He said the 6% levy cut proposal was grandstanding. He said it was wrong to propose a 6% cut without taking responsibility for where the cuts should come from. In the seven month budget process no cuts were brought up. The budget was discussed at the truth in taxation hearing. . Councilmember Mader said he commented on the preliminary levy and at the truth in taxation hearing. . CotL.'lcilmember Kedrowski said he did not speak at the workshop. . Mayor Andren said the June workshop would have been the time to say something. A zero percent tax impact is nothing to apologize for. When working with staff, at some time it would be courteous and responsible to communicate suggestions to staff rather than the last minute when the budget was being adopted. . Councilmember Kedrowski said the sign issue at the Parks would not have cost $100,000 as Councilmember Mader stated. He said he had not heard any complaints, and he would like to see evidence of all the complaints about the spending. He said suggesting a 6% decrease when nowhere in the process were any suggestions offered to accomplish this is inappropriate. . Council member Mader said he did not appreciate the grandstanding accusation. He said the majority of residents in the City feel they are too highly taxed. He said at his second meeting of the Council in 1996, there was a proposal to raise the levy, and he argued against it. He said he was tired of being accused of grandstanding. He said he has had many letters and telephone calls regarding taxes. He cited the sand and salt storage building, on which Prior Lake spent 2-3 times as much as other communities. . Councilrnember Kedrowski said the process started in May. Arbitrarily making cuts at this point was not right. . Mayor Andren called the question. Upon a vote, ayes by Andren, Kedrowski, Robbins, and Schenck, nay Mader, the motion carried. c) Consider Approval of Resolution 97-105 Approving an Employee Classification Plan and Pay Ranges. MOTION BY KEDROWSKI SECOND BY SCHENCK TO APPROVE RESOLUTION 97-105 APPROVING AN EMPLOYEE CLASSIFICATION PLAN AND PAY RANGES. (f Councilrnember Robbins said it was her understanding these changes were already included in the 1998 budget. o Assistant City Manager Woodson said that was COlTect. . Councilmember Mader asked how that compared with the Union Agreements. . Assistant City Manager Woodson said that would come with the next agenda item. The proposal is in compliance with the various unions' classification plans, ranges, and rates. 9 · Councilmember Mader asked if that was a problem, to have a negotiated contract with a given range and a second structure that is different. · Assistant City Manager Woodson asked which unit? · Councilmember Mader said for example grade 10 with three different zones. The contract negotiating unit representing detectives, are they the same ranges? · Assistant City Manager Woodson said there are no ranges in any of the other contracts except AFSCME. They have step plans. The reason for the pay structure/classification is to provide a guide in negotiating and pay-equity compliance. It needs to be in compliance with the state pay equity law. · Councilmember Mader asked what zone 1, 2, 3 meant. · Assistant City Manager Woodson said they were equal increments of a pay range. Generally, they hire in zone 1 and give employees a chance to improve. It doesn't mean everyone is hired in zone one. There is flexibility. The other reason for the zones is the AFSCME contract contains language for a pay for performance system. · Mayor Andren called the question. Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck, the motion carried. 8. NEW BUSINESS: a) Consider Approval of Ratification of Labor Agreements: MOTION BY SCHENCK SECOND BY KEDROWSKI TO APPROVE RESOLUTION 97-107 a APPROVING AFSCME 1997 RE-OPENER (WAGES FOR SELECTED POSITIONS). Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck, the motion carried. MOTION BY SCHENCK SECOND BY KEDROWSKI TO APPROVE RESOLUTION 97-111 RATIFYING THE AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND LELS LOCAL 100 REPRESENTING POLICE OFFICERS. Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck, the motion carried. MOTION BY SCHENCK SECOND BY ROBBINS TO APPROVE RESOLUTION 97-112 RATIFYING THE AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND THE MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT AUTHORITY DIVISION LOCAL 320 REPRESENTING SERGEANTS. Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck the motion carried. MOTION BY SCHENCK SECOND BY ROBBINS TO APPROVE RESOLUTION 97-113 RATIFYING THE LABOR AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND THE PUBLIC LAW ENFORCEMENT AUTHORITY REPRESENTING SUPERVISORS FOR 1998. Upon a vote, ayes by Andren, Kedrowski, Robbins, Mader and Schenck, the motion carried. 10 b) Consider Approval of Resolution 97-114 Approving a Revised Personnel Policy. MOTION BY KEDROWSKI SECOND BY SCHENCK TO APPROVE RESOLUTION 97-114 APPROVING A REVISED PERSONNEL POLICY FOR THE CITY OF PRIOR LAKE EMPLOYEES. · Councilmember Robbins asked about the verbiage that "City Manager may authorize", and she wanted to consider whether those statements should be further defined. Sections are 3-1.1, 3-2.11, 3-2.12, and 3-12.1. · Assistant City Manager Woodson said it was in regard to part-time employees and their eligibility for benefits. This currently does not affect any employees. This policy is superseded by labor agreements, in which case all current regular part time employees are under the AFSCME contract which specifies whether or not they are entitled to benefits. This gives the City Manger flexibility if somewhere they had a regular part time employee that was not covered by AFSCME that that decision could be made. If the Council would like to include "with City Council approval" that is not a big deal. · Councilmember Robbins said it was just for clarity, not questioning the City Manager's authority. · City Manager Boyles said he was not sure the Council wanted to change it to shall. It provides flexibility on a class basis and for negotiations. · Councilmember Robbins said some say "may authorize" and knowing when the City Manager mayor may not authorize would be helpful. · Mayor Andren said this could be tabled. · Councilmember Robbins asked if Assistant City Manager Woodson had any suggestions. · Assistant City Manager Woodson said the items in question were whether part time employees are eligible for benefits, for vacation leave, and whether they would be eligible to receive insurance. If language was inserted "with Council approval" that could take care of it. · Mayor Andren said she had a problem with that because it was a City Manager fOrol of government. · City Manager Boyles said the last time the Council approved a policy was 1988. He said it was Council's job to approve it and his job to apply it. · Councilmember Robbins said so you don't think this part time benefits situation will come up? · City Attorney Pace said under section 1.3 there were the Manager's responsibilities. She said the positions were governed by collective bargaining. In the other sections, it could say "to the extent it is not covered by a collective bargaining agreement". She said the policy is self-modified by giving precedence to the collective bargaining agreement. · Councilmember Robbins said under 3-3.2 she asked whether it should include dependent children and spouse for insurance and family leave, and accrued sick leave. 11 . Assistant City Manager Woodson said it does allow employees to use sick leave for caring for dependents, they could add "or as prescribed in the family medical leave act". . Councilmember Robbins asked about 6-16.1 about the smoking in the garage. . Assistant City Manager Woodson said he would insert "designated areas". . Councilmember Robbins asked about 6-19-2 asked about compensatory time, what it was or its availability. . Assistant City Manager Woodson said he would add it. It applied only to AFSCME or LELS, but they would add a defmition. Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck, the motion carried. c) Consider Approval of Contract with Savage and Shakopee to Secure Management Information System Support and Repair. MOTION BY KEDROWSKI SECOND BY SCHENCK TO APPROVE CONTRACT WITH SA V AGE AND SHAKOPEE TO SECURE MANAGEMENT INFORMATION SYSTEM SUPPORT AND REPAIR. . Councilmember Robbins asked about how much expenditures would be eliminated. . City Manger Boyles said it was $66,000 in 1997 and the City would spend $26,500 in 1998. There were substantial virus problems in 1997, and now the City has virus protection. . Councilmember Robbins said as far as cost justification, how many dollars would be eliminated. . City Manager Boyles said approximately $30,000. . Councilmember Robbins asked about the salary range. . City Manager Boyles said $3,189 per moth to $4,305 per month. . Councilmember Mader asked if all three cities had the same hardware and software. . City Manager Boyles said yes. . Councilmember Mader said he couldn't tell how many people they were hiring. . City Manager Boyles said one. . Councilmember Mader said what if the person quits? . City Manager Boyles said they would have a back-up. . Councilmember Mader said so they would have to have another company under contract? . City Manager Boyles said yes, because they couldn't guarantee that someone would not leave or could handle all levels of work. He said it was similar to the Scott County Joint Prosecution Agreement. 12 · Councilmember Mader said the City had spent a lot of money on computers already, and a better analogy would be if he got together with all of his neighbors and hired someone to fix their appliances instead of service agreements. Then that individual would be confronted with many types of hardware. He asked about subcontracting from another City. He said they would end up with another staff person, have to hire backup, and be responsible for administering to other cities. He said he was very uncomfortable with this and would not support it. · Councilmember Kedrowski said staff was trying to address a CO:1cem. He said he was sure the cities would evaluate the program to see if it was working. · City Manager Boyles said they did try to pursue subcontracting, but Bumsville was uninterested. '" Councilmember Kedrowski said the average charge for the work was $60 per hour. If they don't try, they will never know. · Councilmember Robbins asked about the term of the agreement. · City Manager Boyles said the program would be evaluated annually. · City Attomey Pace said there were withdrawal provisions in item number 2 during August. '" Councilmember Madcr said he heard Tom say $50,000. · Councilmember Kedrowski said $30,000. · Councilmember Mader said he heard Frank say it was high in 1997 because ofviruscs. He has not heard what it would cost for backup. He said he talked with some computer pcople, and putting all the eggs in one basket with one person was risky because of the tumover. He said four months from now the whole City could shut down if a person left. He said it was a bad idea. · Councilmember Kedrowski asked what the rate was for services. · City Manager Boyles said $125 per hour on an as-needed basis. Upon a vote, ayes by Andren, Kedrowski, Robbins, and Schenck, nay Mader, the motion carried. d) City Manager Performance Review: · CouIlcilmember Schenck said it took awhile to put together. He said the concept for compensation was the total of all the scores provided by all Councilmembers, divided by the number of questions, and came up with 3.46 average or a 3.5% increase. That was the factor that was used for compensation. The very last page, contract amendments, they would like to increase the car allowance, and fmally a recommendation is to include the severance agreement in the contract. MOTION BY ANDREN SECOND BY ROBBINS TO APPROVE THE CITY MANAGER PERFORMANCE REVIEW, COMPENSATION AND EMPLOYMENT AGREEMENT RECOMMENDA nONS. Upon a vote, ayes by Andren, Kedrowski, Robbins, Mader, Schenck, the motion carried. 9. ITEMS REMOVED FROM CONSENT AGENDA: a) Consider Approval of Resolution 97-108 Abating Special Assessments on DNR and Post Office Property. 13 . Councilmember Mader asked if the assessments were in place before the property was purchased. . Finance Director Teschner said the DNR assessment was in place, and when the Post Office was under construction, the assessment was in place. They had said they were exempt but were considering paying for the upgrade, then the City received notification h'1at they would apply the tax exempt status. .. Councilmember Mader said this suggested that if they upgrade an area, the owner of the property who owed the assessment could sell the property to Federal Government, who could take the position that they were exempt. He asked if they were exempt from taxes or assessments. . Finance Director Teschner said both. . Councilmembcr Kedrowski asked why they did not go after the money at the time of the sale. . Finance Director Teschner said they did notify the Post Office and they were the owner at the time the utilities were put in. Technically, if the federal government purchases property, they are not obligated to notify the City. If the title company does not notify the City, the City is out ofluck on collecting assessments. If the Council does not approve this, the delinquency will remain. . Coullcilmember Mader said so this could be done at the County level. . Finance Director Teschner said yes, and it happened in 1976 with Park Reserve property. The County did pay it, $75,000. They did not have to. .. City Attorney Pace said it was a little different at the County level. . Councilmember Mader asked if there was a procedure they could take to collect assessments at time of sale from private property owner who sells to federal government. .. Finance Director said no. Ifpeople do not request assessment balances, they assume the liability. The only reason it is brought forth is the County has seven years to declare forfeiture. City Manager Boyles asked if there were any otller properties out there belonging to the State or Federal govenllnent. The Scott County auditor's office did not fmd any, but that does not preclude it from happening again. .. City Attorney Pace said it is usually the responsibility of the buyer, they would have to pay less of a price if the seller paid it. MOTION BY MADER SECOND BY KEDROWSKI TO APPROVE RESOLUTION 97 -108 ABATING SPECIAL ASSESSMENTS ON DNR AND POST OFFICE PROPERTY Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck, the motion carried. . Councilmember Kedrowski suggested that the City staff research the issue. MOTION KEDROWSKI SECOND SCHENCK TO RESEARCH THE ISSUE AND CONTACT THE APPROPRIATE PARTIES I.E. LEAGUE OF MINNESOTA CITIES, LEGISLATURE OR NA TIONAL LEAGUE OF CITIES TO DETERMINE IF THIS ISSUE COULD BE REMEDIED. Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck, the motion carried. 14 b) ITEM 4h) Consider Approval of Resolution 97-110 Concurring with Scott County's Designation of Portions of County Roads 21,42,82, and 83 as County State Aide Highways. · Councilmember Mader asked about the designation of Franklin Trail as a County State Aid Road and the designation of County Road 21. · City Engineer Ilkka said the County's inability to re-designate Franklin Trail as County State Aid does not prevent turning it back to the City. · Councilmember Mader asked if the County wanted to use the 1.21 miles somewhere else. · City Engineer Ilkka said yes. · Councilmember Mader said so the action does not accomplish anything, it keeps them from trying to remove the designation from Franklin Trail. MOTION BY MADER SECOND BY KEDROWSKI TO APPROVE RESOLUTION 97-110 CONCURRING WITH SCOTT COUNTY'S DESIGNATION OF PORTIONS OF COUNTY ROADS 21, 42, 82, AND 83 AS COUNTY STATE AID HIGHWAYS. Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck, the motion canied. 10. OTHER BUSINESS · Councilmember Kedrowski asked about the Burdick Building. · City Manager Boyles said the neighbor's attorney, Harry Ray, was in this morning. It appears the neighbors have a counter offer which they will place in writing and give to all parties. · Councilmember Mader said he assumed the Council should put an ad in the paper to solicit applicants to fill the vacated City Council position in January. · City Attorney Pace said an announcement would be appropriate. · Councilmember Schenck mentioned the LMC training the 7th of Februarj. He said the voters had expressed their preference. · Councilmember Kedrowski said maybe an ad was not necessary given the November 4, 1997 election results. · City Attorney Pace said an announcement would be appropriate if the majority of the Council desired. · Mayor Andren said she would abstairl on any future Council issues. Councilmember Robbins concurred. MOTION BY MADER TO ANNOUNCE VACANCY AS OF JANUARY FIRST AND THAT CITY IS ACCEPTING APPLICATIONS AND THE APPLICATIONS BE IN BY JANUARY 15TH. · Councilmember Kedrowski said they should put in the process. 15 . Councilmember Mader said there should be two subcommittees of two and they could interview any of the applicants, then they could come up with a [mal recommendation. . Councilmember Schenck said it should not be delayed or the Councilmember would miss the training. . The motion died for lack of a second. 11. ANNOUNCEMENTS/CORRESPONDENCE: . Emmy Schneider made a presentation to Mayor Andren on behalf of Kitty and Walter Job for their appreciation of Mayor Andren's twelve years of dedication and service to the City of Prior Lake. . Mayor Andren thanked City staff for its dedication and assistance. 12. ADJOURNMENT: . The meeting adjourned at 11 :04 p.m. by General Consent. City Manager Recording Secretary 16 " Councilmember Kedrowski said the transit levy was mandated by the state. The City retains greater control of the levy if it levies instead of the Met Council. Prior Lake gets those dollars back in actual community service. The Metropolitan Council allocates the dollars back to the City. He said he made the motion to adopt this budget, which they have discussed for over seven months. He said the 6% levy cut proposal was grandstanding. He said it was wrong to propose a 6% cut without taking responsibility for where the cuts should come from. In the seven month budget process no cuts were brought up. The budget was discussed at the truth in taxation hearing. · Councilmember Mader said he commented on the preliminary levy and at the truth in taxation hearing. · CounciL"11ember Kedrowski said he did not speak at the workshop. · Mayor Andren said the June workshop would have been the time to say something. A zero percent tax inlpact is nothing to apologize for. When working with staff, at some time it would be courteous and responsible to communicate suggestions to staff rather than the last minute when the budget was being adopted. · Councilmember Kedrowski said the sign issue at the Parks would not have cost $100,000 as Councilmember Mader stated. He said he had not heard any complaints, and he would like to see evidence of all the complaints about the spending. He said suggesting a 6% decrease when nowhere in the process were any suggestions offered to accomplish this is inappropriate. · Councilmember Mader said he did not appreciate the grandstanding accusation. He said the majority of residents in the City feel they are too highly taxed. He said at his second meeting of the Council in 1996, there was a proposal to raise the levy, and he argued against it. He said he was tired of being accused of grandstanding. He said he has had many letters and telephone calls regarding taxes. He cited the sand and salt storage building, on which Prior Lake spent 2-3 times as much as other communities. · Councilmember Kedrowski said the process started in May. Arbitrarily making cuts at this point was not right. · Mayor Andren called the question. Upon a vote, ayes by Andren, Kedrowski, Robbins, and Schenck, nay Mader, the motion carried. c) Consider Approval of Resolution 97-105 Approving an Employee Classification Plan and Pay Ranges. MOTION BY KEDROWSKI SECOND BY SCHENCK TO APPROVE RESOLUTION 97-105 APPROVING AN EMPLOYEE CLASSIFICA nON PLAN AND PAY RANGES. · Councilmember Robbins said it \vas her understanding these changes were already included in the 1998 budget. · Assistant City Manager Woodson said that was correct. · Councilmember Mader asked how that compared with the Union Agreements. · Assistant City Manager Woodson said that would come with the next agenda item. The proposal is in compliance with the valious unions' classification plans, ranges, and rates. 9 . Councilmember Mader asked if that was a problem, to have a negotiated contract with a given range and a second structure that is different. . Assistant City Manager Woodson asked which unit? . Councilmember Mader said for example grade 10 with three different zones. The contract negotiating unit representing detectives, are they the same ranges? . Assistant City Manager Woodson said there are no ranges in any of the other contracts except AFSCME. They have step plans. The reason for the pay structure/classification is to provide a guide in negotiating and pay-equity compliance. It needs to be in compliance with the state pay equity law. . Councilmember Mader asked what zone 1,2,3 meant. . Assistant City Manager Woodson said they were equal increments of a pay range. Generally, they hire in zone 1 and give employees a chance to improve. It doesn't mean everyone is hired in zone one. There is flexibility. The other reason for the zones is the AFSCME contract contains language for a pay for performance system. . Mayor Andren called the question. Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck, the motion carried. 8. NEW BUSINESS: a) Consider Approval of Ratification of Labor Agreements: MOTION BY SCHENCK SECOND BY KEDROWSKI TO APPROVE RESOLUTION 97-107 a APPROVING AFSCME 1997 RE-OPENER (WAGES FOR SELECTED POSITIONS). Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck, the motion carried. MOTION BY SCHENCK SECOND BY KEDROWSKI TO APPROVE RESOLUTION 97-111 RATIFYING THE AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND LELS LOCAL 100 REPRESENTING POLICE OFFICERS. Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck, the motion carried. MOTION BY SCHENCK SECOND BY ROBBINS TO APPROVE RESOLUTION 97-112 RATIFYING THE AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND THE MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT AUTHORITY DIVISION LOCAL 320 REPRESENTING SERGEANTS. Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck the motion carried. MOTION BY SCHENCK SECOND BY ROBBINS TO APPROVE RESOLUTION 97-113 RATIFYING THE LABOR AGREEMENT BETWEEN THE CITY OF PRIOR LAKE AND THE PUBLIC LAW ENFORCEMENT AUTHORITY REPRESENTING SUPERVISORS FOR 1998. Upon a vote, ayes by Andren, Kedrowski, Robbins, Mader and Schenck, the motion carried. 10 b) Consider Approval of Resolution 97-114 Approving a Revised Personnel Policy. MOTION BY KEDROWSKI SECOND BY SCHENCK TO APPROVE RESOLUTION 97-114 APPROVING A REVISED PERSONNEL POLICY FOR THE CITY OF PRIOR LAKE EMPLOYEES. · Councilmember Robbins asked about the verbiage that "City Manager may authorize", and she wanted to consider whether those statements should be further defined. Sections are 3-1.1, 3-2.11, 3-2.12, and 3-12.1. · Assistant City Manager Woodson said it was in regard to part-time employees and their eligibility for benefits. This currently does not affect any employees. This policy is superseded by labor agreements, in which case all current regular part time employees are under the AFSCME contract which specifies whether or not they are entitled to benefits. This gives the City Manger flexibility if somewhere they had a regular part time employee that was not covered by AFSCME that that decision could be made. If the Council would like to include "with City Council approval" that is not a big deal. · Councilmember Robbins said it was just for clarity, not questioning the City Manager's authority. · City Manager Boyles said he was not sure the Council wanted to change it to shall. It provides flexibility on a class basis and for negotiations. · Councilmember Robbins said some say "may authorize" and knowing when the City Manager mayor may not authorize would be helpful. · Mayor Andren said this could be tabled. · Councilmember Robbins asked if Assistant City Manager Woodson had any suggestions. · Assistant City Manager Woodson said the items in question were whether part time employees are eligible for benefits, for vacation leave, and whether they would be eligible to receive insurance. If language was inserted "with Council approval" that could take care of it. · Mayor Andren said she had a problem with that because it was a City Managcr form of government. · City Manager Boyles said the last time the Council approved a policy was 1988. He said it was Council's job to approve it and his job to apply it. · Councilmember Robbins said so you don't think this part time benefits situation will come up? · City Attorney Pace said under section 1.3 there were the Manager's responsibilities. She said the positions were governed by collective bargaining. In the other sections, it could say "to tlle extent it is not covered by a collective bargaining agreement". She said the policy is self-modified by giving precedence to the collective bargaining agreement. · Councilmember Robbins said under 3-3.2 she asked whether it should include depcndent children and spouse for insurance and family leave, and accrued sick leave. 11 . Assistant City Manager Woodson said it does allow employees to use sick leave for caring for dependents, they could add "or as prescribed in the family medical leave act". . Councilmember Robbins asked about 6-16.1 about the smoking in the garage. . Assistant City Manager Woodson said he would insert "designated areas". . Councilmember Robbins asked about 6-19-2 asked about compensatory time, what it was or its availability. . Assistant City Manager Woodson said he would add it. It applied only to AFSCME or LELS, but they would add a defmition. Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck, the motion carried. c) Consider Approval of Contract with Savage and Shakopee to Secure Management Information System Support and Repair. MOTION BY KEDROWSKI SECOND BY SCHENCK TO APPROVE CONTRACT WITH SA V AGE AND SHAKOPEE TO SECURE MANAGEMENT INFORMATION SYSTEM SUPPORT AND REPAIR. . Councilmember Robbins asked about how much expenditures would be eliminated. . City Manger Boyles said it was $66,000 in 1997 and the City would spend $26,500 in 1998. There were substantial virus problems in 1997, and now the City has virus protection. . Councilmember Robbins said as far as cost justification, how many dollars would be eliminated. . City Manager Boyles said approximately $30,000. . Councilmember Robbins asked about the salary range. . City Manager Boyles said $3,189 per moth to $4,305 per month. . Councilmember Mader asked if all three cities had the same hardware and software. . City Manager Boyles said yes. . Councilmember Mader said he couldn't tell how many people they were hiring. . City Manager Boyles said one. . Councilmember Mader said what if the person quits? . City Manager Boyles said they would have a back-up. . Councilmember Mader said so they would have to have another company under contract? . City Manager Boyles said yes, because they couldn't guarantee that someone would not leave or could handle all levels of work. He said it was similar to the Scott County Joint Prosecution Agreement. 12 · Councilmember Mader said the City had spent a lot of money on computers already, and a better analogy would be ifhe got together with all of his neighbors and hired someone to fix their appliances instead of service agreements. Then that individual would be confronted with many types of hardware. He asked about subcontracting from another City. He said they would end up with another staffpersoll, have to hire backup, and be responsible for administering to other cities. He said he was very uncomfortable with this and would not support it. · Councilmember Kedrowski said staff was trying to address a concern. He said he was sure the cities would evaluate the program to see if it was working. · City Manager Boyles said they did try to pursue subcontracting, but Burnsville was uninterested. · Councilmember Kedrowski said the average charge for the work was $60 per hour. If they don't try, they will never know. · Councilmember Robbins asked about the term of the agreement. · City Manager Boyles said the program would be evaluated annually. · City Attorney Pace said there were withdrawal provisions in item number 2 during August. · Councilmember Mader said he heard Tom say $50,000. · Councilmember Kedrowski said $30,000. · Councilmember Mader said he heard Frank say it was high in 1997 because of viruses. He has not heard what it would cost for backup. He said he talked with some computer people, and putting all the eggs in one basket with one person was risky because of the turnover. He said four months from now the whole City could shut down if a person left. He said it was a bad idea. · Councilmember Kedrowski asked what the rate was for services. · City Manager Boyles said $125 per hour on an as-needed basis. Upon a vote, ayes by Andren, Kedrowski, Robbins, and Schenck, nay Mader, the motion carried. d) City Manager Peiformance Review: · Councilmember Schenck said it took awhile to put together. He said the concept for compensation was the total of all the scores provided by all Councilmembers, divided by the number of questions, and came up with 3.46 average or a 3.5% increase. That was the factor that was used for compensation. The very last page, contract amendments, they would like to increase the car allowance, and fmally a recommendation is to include the severance agreement in the contract. MOTION BY ANDREN SECOND BY ROBBINS TO APPROVE THE CITY MANAGER PERFORMANCE REVIEW, COMPENSATION AND EMPLOYMENT AGREEMENT RECOMMENDATIONS. Upon a vote, ayes by Andren, Kedrowski, Robbins, Mader, Schenck, the motion carried. 9. ITEMS REMOVED FROM CONSENT AGENDA: a) Consider Approval of Resolution 97-108 Abating Special Assessments on DNR and Post Office Property. 13 . Councilmember Mader asked if the assessments were in place before the property was purchased. . Finance Director Teschner said the DNR assessment was in place, and when the Post Office was under construction, the assessment was in place. They had said they were exempt but were considering paying for the upgrade, then the City received notification that they would apply the tax exempt status. . Councilmember Mader said this suggested that if they upgrade an area, the owner of the property who owed the assessment could sell the property to Federal Government, who could take the position that they were exempt. He asked if they were exempt from taxes or assessments. . Finance Director Teschner said both. . Councilrnember Kedrowski asked why they did not go after the money at the time of the sale. . Finance Director Teschner said they did notify the Post Office and they were the owner at the time the utilities were put in. Technically, if the federal government purchases property, they are not obligated to notify the City. If the title company does not notify the City, the City is out of luck on collecting assessments. If the Council does not approve this, the delinquency will remain. . Councilmember Mader said so this could be done at the County level. . Finance Director Teschner said yes, and it happened in 1976 with Park Reserve property. The County did pay it, $75,000. 'They did not have to. . City Attorney Pace said it was a little different at the County level. . Councilmember Mader asked if there was a procedure they could take to collect assessments at time of sale from private property owner who sells to federal government. . Finance Director said no. Ifpeople do not request assessment balances, they assume the liability. The only reason it is brought forth is the County has seven years to declare forfeiture. City Manager Boyles asked if there were any other properties out there belonging to the State or Federal government. The Scott County auditor's office did not find any, but that does not preclude it from happening again. . City Attorney Pace said it is usually the responsibility of the buyer, they would have to pay less of a price if the seller paid it. MOTION BY MADER SECOND BY KEDROWSKI TO APPROVE RESOLUTION 97-108 ABATING SPECIAL ASSESSMENTS ON DNR AND POST OFFICE PROPERTY Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck, the motion carried. . Councilmember Kedrowski suggested that the City staff research the issue. MOTION KEDROWSKI SECOND SCHENCK TO RESEARCH THE ISSUE AND CONTACT THE APPROPRIATE PARTIES I.E. LEAGUE OF MINNESOTA CITIES, LEGISLATURE OR NATIONAL LEAGUE OF CITIES TO DETERMINE IF THIS ISSUE COULD BE REMEDIED; Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck, the motion carried. 14 -n- b) ITEM 4h) Consider Approval of Resolution 97-110 Concurring with Scott County's Designation of Portions of County Roads 21, 42, 82, and 83 as County State Aide Highways. · Councilmember Mader asked about the designation of Franklin Trail as a County State Aid Road and the designation of County Road 21. · City Engineer Ilkka said the County's inability to re-designate Franklin Trail as County State Aid does not prevent turning it back to the City. · Councilmember Mader asked if the County wanted to use the 1.21 miles somewhere else. · City Engineer Ilkka said yes. · Councilmember Mader said so the action does not accomplish anything, it keeps them from trying to remove the designation from Franklin Trail. MOTION BY MADER SECOND BY KEDROWSKI TO APPROVE RESOLUTION 97-110 CONCURRING WITH SCOTI COUNTY'S DESIGNATION OF PORTIONS OF COUNTY ROADS 21, 42, 82, AND 83 AS COUNTY STATE AID HIGHWAYS. Upon a vote, ayes by Andren, Kedrowski, Mader, Robbins, and Schenck, the motion carried. 10. OTHER BUSINESS · Councilmember Kedrowski asked about the Burdick Building. · City Manager Boyles said the neighbor's attomey, Harry Ray, was in this morning. It appears the neighbors have a counter offer which they will place in writing and give to all parties. · Councilmember Mader said he assumed the Council should put an ad in the paper to solicit applicants to fill the vacated City Council position in January. · City Attorney Pace said an announcement would be appropriate. · Councilmember Schenck mentioned the LMC training the 7th of February. He said the voters had expressed their preference. · Councilmember Kedrowski said maybe an ad was not necessary given the November 4, 1997 election results. · City Attorney Pace said an announcement would be appropriate if the majority of the Council desired. · Mayor Andren said she would abstain on any future Council issues. Councilmember Robbins concurred. MOTION BY MADER TO ANNOUNCE VACANCY AS OF JANUARY FIRST AND THAT CITY IS ACCEPTING APPLICATIONS AND THE APPLICATIONS BE IN BY JANUARY 15TH. · Councilmember Kedrowski said they should put in the process. 15 . Councilmember Mader said there should be two subcommittees of two and they could interview any of the applicants, then they could come up with a [mal recommendation. . Councilmember Schenck said it should not be delayed or the Councilmember would miss the training. . The motion died for lack of a second. 11. ANNOUNCEMENTS/CORRESPONDENCE: . Emmy Schneider made a presentation to Mayor Andren on behalf of Kitty and Walter Job for their appreciation of Mayor Andren's twelve years of dedication and service to the City of Prior Lake. . Mayor Andren thanked City staff for its dedication and assistance. 12. ADJOURNMENT: . The meeting adjourned at 11 :04 p.m. by General Consent. :AWJ)i~ u Lf(j~ /.ill;Z ;)ckJv Recording Secretary City Manager . ,4' 16 ,..