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HomeMy WebLinkAboutAgenda & Minutes 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 REGULAR COUNCIL MEETING AGENDA May 21, 2007 6 p.m. mmm9.!~~~!lmm Work Session 5 p.m. Budget 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 7, 2007, 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 Council member, 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 Report. F. Consider Approval of a Resolution Accepting Rehabilitation Plans and Specifications and Authorizing Advertisement for Bids for 2007 Lift Station Project. G. Consider Approval of a Resolution Approving the Final Plat and Development Contract for the Development of Land as a Planned Unit Development for Stonebriar. H. Consider Approval of a Resolution Approving the Final PUD Plan and Contract for Stonebriar. I. Consider Approval Of A Resolution Modifying The 150th Street Easement Access Agreement. J. Consider Approval of a Resolution Accepting Quotes and Authorizing Purchase and Installation of Well #9 Pump and Appurtenant Electrical Equipment. www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 K. Consider Approval of a Resolution Approving Cost Participation with the City of Savage for the 150th Street I TH 13 I ntersection Study. 6. ITEMS REMOVED FROM CONSENT AGENDA 7 . PRESENTATIONS A. Audit Presentation by Abdo, Eick and Meyers. B. Proclamation - Red Cross "Get Ready Campaign" and Presentation by Red Cross Chapter CEO Jan McDaniel Regarding Emergency Preparedness. C. Consider Proclamation of National Public Works Week for the Week of May 20-26,2007. D. PLAY Presentation. 8. PUBLIC HEARINGS A. Conduct Informational Hearing and Consider Approval of a Resolution Approving the 2008 - 2012 Capital Improvement Program (CIP). 9. OLD BUSINESS A. Continuation of the Board of Appeal and Equalization. B. Consider Approval Of A Resolution Accepting Bids And Authorizing The Mayor And City Manager To Execute The City's Standardized Construction Contract For The Installation Of Playground Equipment At Howard Lake Park And Woods In The Wilds Park. C. Consider Approval of a Resolution Approving a Report Regarding Ryan Park Improvements. D. Consider Approval of a Resolution: 1) Rejecting Bids and Accepting Quotes, and 2) Authorizing the Mayor and City Manager to Execute the City's Standardized Construction Contract for 2007 Water System Improvements. E. Consider Approval of a Report Regarding City Boat Slips, Police Patrolling and Gating. 10. NEW BUSINESS A. Consider Approval of 2006 Annual Finance Report and Management Letter. B. Consider Approval of a Resolution Authorizing General Fund Transfer to the Severance Compensation Fund. C. Consider Approval of a Resolution Setting a Policy for Conducting Street Sweeping Operations in the City of Prior Lake. D. Consider Approval of an Ordinance Amending Section 901, Public Waters, of the City Code of Ordinances. 11. OTHER BUSINESS/COUNCILMEMBER REPORTS A. Community Events 12. ADJOURNMENT City Council Meeting Minutes May 7,2007 DRAFT REGULAR COUNCIL MEETING MINUTES CALL TO ORDER Present were Mayor Haugen, Councilmembers Erickson, Hedberg, LeMair and Millar, City Manager Boyles, City Attorney Pace, Public Works Director/City Engineer Albrecht, Assistant City Engineer Poppler, Planning Director Kansier, Finance Director Teschner, Assistant City Manager Meyer, Communications Coordinator Peterson and Administrative Assistant Green. 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. 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 governmental topics rather than private or political agendas. The City Council will not take formal action on issues pre- sented during the Public Forum. City Manager Boyles explained the concept of the public forum. No person stepped forward to speak. APPROVAL OF AGENDA City Manager Boyles requested the modification of consent agenda item 5H to read, Consider Approval of a Resolution Approving a Request for Bids for the Operation of Laker Lines Bus Service. Boyles also re- quested the addition of consent agenda 5M, Consider Approval of a Resolution Authorizing Execution of a Settlement Agreement for the Vetter Lawsuit. MOTION BY MILLAR, SECONDED BY LEMAIR TO APPROVE THE AGENDA AS MODIFIED. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. APPROVAL OF MEETING MINUTES MOTION BY MILLAR, SECONDED BY HEDBERG TO APPROVE THE APRIL 16, 2007, MEETING MINUTES AS PRESENTED. VOTE: Ayes by Haugen, Erickson, Hedberg, Millar and LeMair. The motion carried. MOTION BY HEDBERG, SECONDED BY LEMAIR TO APPROVE THE APRIL 30, 2007, MEETING MINUTES AS PRESENTED. VOTE: Ayes by Haugen, Erickson, Hedberg, Millar and LeMair. The motion carried. CONSENT AGENDA City Manager Boyles reviewed the items on the consent agenda. 1 City Council Meeting Minutes May 7,2007 DRAFT A. Consider Approval of Invoices to be Paid. B. Consider Approval of a Resolution Authorizing the Mayor and City Manager to Enter into a Cooperative Agreement with Scott County for Cost Sharing of Aerial Photography. C. Consider Approval of Resolution 07-077 Restricting Parking on CR 21 Between Franklin Trail and Adelmann Street. D. Consider Approval of Resolution 07-078 Authorizing Staff to Solicit Quotes for Well #9 Pump and In- stallation. E. Consider Approval of Resolution 07-079 Authorizing Advertisement for Bids for Replacement of CR 21 Street Lights as Part of the CR 21 Reconstruction Project. F. Consider Approval of Resolution 07-080 Authorizing the Mayor and City Manager to Enter Into an Agreement with Scott County for the Operation of the Local Laker Link Summer Circulator Service. G. Consider Approval of Resolution 07-081 Declaring Personal Property as Surplus and Directing Dis- posal by Donation and Public Sale. H. Consider Approval of Resolution 07-082 Approving a Request for Bids for the Operation of Laker Lines Bus Service. I. Consider Approval of Resolution 07-083 Approving the Common Interest Community Number 1186 (Courtwood Village Condominium) CIC Plat. J. Consider Approval of Resolution 07-084 Waiving Platting Requirements for the Subdivision of Property Located at 4070 140th Street NE (Squires Property). K. Consider Approval of Resolution 07-085 Approving the Wetland Replacement Plan for CR 21 Recon- struction from Adelmann to Franklin Trail (City Project No. 05-03). L. Consider Approval of a Resolution Adopting the Revised 2030 Vision and Strategic Plan. M. Consider Approval of Resolution 07-086 Authorizing Execution of a Settlement Agreement for the Vet- ter Lawsuit. Councilor Hedberg requested that item 5B, Consider Approval of a Resolution Authorizing the Mayor and City Manager to Enter into a Cooperative Agreement with Scott County for Cost Sharing of Aerial Photog- raphy, and 5 L, Consider Approval of a Resolution Adopting the Revised 2030 Vision and Strategic Plan, be removed from the consent agenda for comment. MOTION BY MILLAR, SECONDED BY HEDBERG TO APPROVE THE CONSENT AGENDA AS MODIFIED. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Hedberg: Stated he would like it to be on record that the update of the 2030 Vision and Strategic Plan is a significant event. Soon the document will be published and on the City's Website. Noted that more than 100 people participated and had an opportunity to comment on the revised document. Haugen: Added that the Plan was initiated five years ago with the intent to revisit it regularly. Erickson: Commented that the Council spent several hours debating the revisions to have the document ready for approval at this meeting. MOTION BY HEDBERG, SECOND BY MILLAR TO APPROVE RESOLUTION 07-087 ADOPTING THE REVISED 2030 VISION AND STRATEGIC PLAN. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. 2 City Council Meeting Minutes May 7,2007 DRAFT Hedberg: Commented that aerial photograph is completed every three years and the information is impor- tant for public information and planning. Suggested that enterprise services such as Google Earth should be researched as a possible source for the photography. Millar: Concurred with Hedberg comments and recommended that one of the aerial photos planned for the water treatment plant should be in a public place such as the City Hall lobby. MOTION BY MILLAR, SECONDED BY LEMAIR TO APPROVE RESOLUTION 07-088 AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO A COOPERATIVE AGREEMENT WITH SCOTT COUNTY FOR COST SHARING OF AERIAL PHOTOGRAPHY; AND TO USE THE AERIAL PHOTOGRAPH SCHEDULED FOR THE WATER TREATMENT PLANT FOR PLACEMENT IN THE CITY HALL LOBBY. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. PRESENTATION Proclamation Declaring the Second Annual"Lake Clean Up Day" on June 9. Assistant City Engineer Poppler informed the Council that divers would be cleaning debris out of the lake on the Lake Clean Up Day scheduled for June 9. Asked for a proclamation to promote that activity and commented that he hopes the event will generate interest in cleaning up privately-owned lake shores in the City. Mayor Haugen read a proclamation proclaiming June 9 as the second annual "Lake Clean Up Day." Comments: Haugen: Asked how the event for cleaning up the shore would be promoted. Poppler: Replied it would be on the Website and in the Wavelength. Haugen: Encouraged using all media mechanisms including the Prior Lake American. PUBLIC HEARING Public Hearing to Conduct Board of Appeal and Equalization. City Manager Boyles explained that the City Council sits as the Board of Appeal and Equalization. Noted that the Council could have delegated that role to the County, but the Council believes residents should have the opportunity to make their appeal in a local forum. Tonight's purpose is to look at the valuation of properties as of January 2, 2007, and the taxation amount will not be addressed. Stated that the County Assessor's office would report on its actions to date and give statistics from this year's appraisals and then the public will have an opportunity to address the Board of Appeal and Equalization. If questions about valuation of properties cannot be answered at tonight's hearing, the hearing will be continued on May 21, 2007. Bob Schmitt, Scott County Assessor, introduced Mike Thompson, John Greenwood, Terence Chacka and Brian Connors from the Assessor's office. Commented on previous inequities in valuations and promised they would be addressed before the assessments this year. Stated that fifty percent of the properties in Prior Lake were appraised this year and the remaining fifty percent will be completed next year. Noted that property owners can continue an appeal to the County Board and to the Minnesota Tax Court if they are dissatisfied with any affirmation of value at this hearing. Thompson: Stated that appraisals were made on land and buildings where it was believed disparities existed. Also looked at agricultural areas and residential parcels of ten or more acres. Realized that val- ues around the lake need to be revalued and tried to equalize land value. In the next year the Assessor's office will review the remaining fifty percent which will include lakeshore properties and areas around the 3 City Council Meeting Minutes May 7,2007 DRAFT lake. Explained ratios used in assessments and compared the ratios between 2006 and 2007, noting im- provements in valuations. Stated there was a need to make increases in valuation in certain areas, but when looking at mean appraised value compared to mean sales value, it shows they are closer to where they should be now. They will still address properties that are outside of 90-105% ratios. Comments: Millar: Stated there is a marked improvement over last year and appreciates that the Assessor's office made real efforts to correct problems from last year. Hedberg: Asked if total appraised value means the sample that was appraised. Thompson: Replied that it reflects 406 qualified residential sales from 2006 comparing the total sales price to total assessed value. Hedberg: Clarified statistics about land value. Erickson: Clarified the difference between the mean value and the median value. Commented that the importance of valuation is how one's home compares to other homes and if everyone's valuation increases at the same rate, their taxes won't change so proper valuation gains fairness. Thompson: Stated the Assessor's office is trying to get everyone's valuation correct and then there will be similar types of appreciation in neighborhoods. Erickson: Commented that some valuations would increase because they were not valuated appropriately before. Thompson: Agreed that if properties weren't assessed at 100% of market value to begin with they will need an increase to get to that. Schmidt: Commented that the values Thompson refers to are as of January 2, 2007, for taxes that will be paid in 2008. Such values are appealable tonight, not at the Truth-In-Taxation meetings that will be held next fall. MOTION BY MILLAR, SECONDED BY ERICKSON TO OPEN THE PUBLIC HEARING VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried and the public hearing opened at 6:38 p.m. Comments: Julie David, 14958 Pixie Point Circle, stated valuation on her property has increased $139,500 in two years to $658,000. Questioned valuation stating a realtor is telling people to value homes same as 2004. Believes there is disparity when compared to nearby property that has 1,000 more square footage and is valued at $677,000. Thompson: Will look at differences between those two properties and use any sale that occurred close to January 2007 to find good comparable sales. If sales are an indicator of what sales will be in the area, it would be considered next year. Noted that listings don't always tell what the property is worth, but that valuation is based on actual sales. Will review property and find comparable sales. Jeff White, 15390 Breezy Point Road, PID# R25026001 0, disputed zoning classification on Lot 1, Breezy Point. Stated there are four owners of that property and it is zoned seasonal, residential, recreational. Dis- putes residential classification as does not believe it is a buildable lot. Thompson: Will look at valuation and needs to receive information regarding the use of property. Stated a recreation classification is determined by State law and is not appealable. White: Stated he would like to know how some other associations use their recreational lot. 4 City Council Meeting Minutes May 7, 2007 DRAFT David Chromy, representing Village Market and South lake Village Center at 1671 Hwy 13. Stated that the landowner sent a letter for appeal and he is present to ask consideration of the valuation which is sched- uled to triple in the next year. Asked if increase could be incremental rather than all at once. Connors: Noted there have been significant improvements to the property and it has been assessed to reflect actual market value. During the improvement period the Assessor's office was conservative regard- ing value, but when value is recognized, assessment is required at that level and there is no provision for an incremental process. Chromy: Asked if Assessor's office has shared that information with the owner. Connors: Affirmed and stated he received a letter from him expressing concerns. Understands that when taxes go up the cost is passed along to the tenants. Chromy: Asked Assessor's to reevaluate the property. Connors: Asked if Chromy agreed that improvement has been vast. Chromy: Stated he is not aware of how other strip malls are valued. Connors: Explained the process as that when an owner calls, the appraisers double check the work to assure it was done correctly, check the market information and the information the owner supplies. Stated that in this case the valuation is firmly supported by the marketplace and explained why. Reiterated that the Assessor's office is asking the Board to affirm the valuation. Schmidt: Advised that Chromy can also appeal to the County Board and the Minnesota Tax Board and that a petition could be filed at the courthouse to do so. Lynn Quam, 14508 Wilds Parkway, stated they have had a 15% increase for each of the last two years. Home is valued at $699,000. Gave examples of two homes that were sold for less and stated their house is smaller. Stated the home is not finished and the basement is unfinished. Thompson: Noted he spoke with Mr. Quam today and previously. Greenwood completed a comparison grid on this property. Initial assessment was $698,100 and after review of five comparable sales, revised it to $650,000. Noted that the Wild's is a tough area to appraise due to so many different builders. Quam: Asked if it is coincidental that the increase was 15% for each of both years. Referred to an article by Barb Marschall in the Prior Lake American that referred to an overall increase in total value of residential property in Prior Lake as being 3.94%. Thompson: Believes the assessment is a fair representation of what was there last summer when it was appraised. Noted that the quality of the home plays a big role in the Wild's. Quam: Commented the woodwork in their home isn't finished. Thompson: Replied the appraiser attempts to account for all of those factors. Shared the sales that were used in comparison and explained that adjustments are made for differences in the homes. Quam: Asked about options to appeal. Thompson: Explained the County Board of Appeals. LeMair: Clarified that Quam's lot is a half-acre on the golf course. Quam: Affirmed and noted that neighbors were on the golf course too. Thompson: Stated he cannot comment on the comparables provided by Quam at the hearing as he has no information on the sales at this time, but noted there is no intention to value higher than a home can be sold for. Haugen: Requested Thompson to review the com parables provided by Quam and bring his decision about the valuation to the continuation of the hearing on May 21. John Myser, 16015 Northwood Road, asked if there is a threshold of 15% for an increase of taxable mar- ket value. Thompson: Replied that it could be 15% on top of the previous year; or, on next year's taxes, 33% of the difference between the two years which could result in more than 15%. 5 City Council Meeting Minutes May 7,2007 DRAFT Myser: Noted that last year he raised concerns about land values of properties on the lake and would like to do that to learn that lake land value is appropriate to other land values in the area. Thompson: Would like to look into it and will report back to the Board on May 21. Kenn Boyles, 15358 Breezy Point Road, PID #R253480010, stated his assessments seem high. Gave background on building the house stating there was a review by the Assessor's office at that time. Stated that property value has increased 38% per year for three years, especially the land value. Called assessor and asked why it was going up so high and was told that it was due to the market. Researched 22 sales for comparables but questions the value of many of them. Thompson came to the house and did full assess- ment of the house but Boyles does not understand how the valuation was calculated Hedberg: Asked how much lake frontage there is on Boyles' property. K. Boyles: Replied there is 180 feet on a bay. LeMair: Asked if the house was on the property when purchased. K. Boyles: Replied it was a bare lot. LeMair: Asked if Boyles paid less than what it is valued at. K. Boyles: Affirmed, stating it was six years ago at $185,000. Hedberg: Noted that several of the houses on the list of 22 were tear downs and suspects that the pur- chase price then becomes the price of the lot. Noted that Boyles is asking good questions about the meth- odology. K. Boyles: Stated he does not know how the sales information he has factors into the valuation. Haugen: Asked if the process for breaking out land value from the total sales price is County originated. Gave example of an independent appraiser on a property resulting in a $300,000 difference in the land value from the appraisal done by the Assessor's office even though the total property value was similar. Asked Assessor to bring County's perspective for that example to the continuation of the hearing on May 21. Thompson: Replied he started communicating with K. Boyles about three weeks ago to address his con- cerns. Noted there were two vacant lot sales on the lake this year. K. Boyles: Referred to the amount of the sales and again questioned the process used to find consistency in evaluation. Hedberg: Reiterated question about methodology and asked how the County appraiser figures the value of land on the lake and whether they use houses that are purchased and torn down as the value of the land. Thompson: Affirmed they will use tear downs as value of the property. Also used homes built and extract the value of the building. Use the amount of footage on the lake as well as consideration of the topogra- phy, size of the lot, landscaping and whether or not it is wooded, etc. Stated that when K. Boyles pur- chased his lot for $185,000 five years ago, the builder had been trying to build for three years, and the diffi- culty of building on that lot may have impacted the price at that time. Noted many variances were required to build. Noted daughter's lot was near to it with no variance issues, pricing was similar and that lot is val- ued for less, K. Boyles lot has more footage even though daughter's lot has more acreage. . K. Boyles: Reiterated that there doesn't seem to be consistency in calculating the valuation of the land. Thompson: Replied that goes back to the equalization that is being instilled. K. Boyles: Believes the lot was already equalized and shouldn't be equalized every year. Thompson: Responded that he did the work this year and tried to assure that similar lots are valued simi- larly. In the coming year all of the lakeshore property will be revalued, but it was obvious that they needed to do something this year on the lake and it is more equal this year than it was last year. Stated he in- spected this property and lowered the value to $746,600 to be similar to everyone else. Explained factors he used in calculating the valuation. 6 City Council Meeting Minutes May 7,2007 DRAFT Haugen: Suggested that Thompson and Boyles talk through the process and explain to Boyles how the valuation was reached. Appears the question may not be about the valuation of the property, but rather at how the valuation was determined. Other property owners in that proximity may want the knowledge. K. Boyles: Agreed. Suggested the County would want to do that if lake property is going to be revalued next year and expects others may want to know why it is what it is. Having it written down as a value per foot or something, is a good idea. MOTION BY HEDBERG, SECONDED BY MILLAR TO CLOSE THE PUBLIC HEARING VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried and the public hearing closed at 7:43 p.m. Comments: Hedberg: Stated the Assessor's staff has made a serious effort to balance valuations across Prior Lake and there is probably similar work to be done next year. Seems to be more imbalance in higher end prop- erties. Commented he has lived on the lake for a long time and values on the lake have escalated dramati- cally in the last five years. It is likely there will be a number of lake home owners here next year so the more that the process can be clarified about how land values are established, the better off we'll be. Millar: Concurs. Noted that it is becoming obvious that the appraisers are out there and thanked them for upgrading the performance level of their staff. Erickson: Concurred and stated this was a more enjoyable hearing than it was a year ago. Understands that assessors can only report on their findings. LeMair: Agreed it was nice to not have the customer service complaints as last year. Expressed concern about the Village Market appraisal and asked how it is valued compared to commercial properties in other towns. Schmitt: Replied they compared to properties in the metro area, what investors are paying for this type of property, rents, and expenses to see what is typical in the market place. Noted they went outside the local area to find com parables and adjustments were made for that. LeMair: Commented that another grocery store left the area because of its inability to make it - believes this local group has made it successful, but it is not a windfall. Concemed the owner would not be able to get the same rental if there is another failure due to tripled taxes - does not want to put the business in peril. Schmitt: Concurs the desire for the business to succeed. Stated the Assessor's office doesn't have a lot of choices and has to estimate the value based on the information they have. There is no option to apply increases in stages. If an adjustment is warranted, they will make it, but believes the valuation is accurate. LeMair: Stated he would like to see it reviewed further before the valuation is affirmed. Haugen: Complimented the assessors that no complaints were made about service levels this year. Noted that they are working towards a fair valuation system. Questioned the process used in 2001 and 2002 that led to big increases in valuations this year. Questioned why there is a big increase in the Village Market valuation in one year rather than incremental increases over several years. Asked why there is not a systematic change over time rather than big jumps. Schmidt: Replied that he cannot answer why values on lakeshore were not where they should have been three years ago. Stated the Assessor's office started investigating the big inequities this year and believes the equity is better than it was last year. Commended Thompson for that. Commented that the retail strip mall with the Village Market was basically gutted and major improvements made and a year ago half of it was vacant. Noted that rent-ability has much to do with valuation. 7 City Council Meeting Minutes May 7, 2007 DRAFT MOTION BY HEDBERG, SECONDED BY MILLAR TO DIRECT THE SCOTT COUNTY ASSESSOR TO PREPARE A REPORT FOR CONSIDERATION AT THE MAY 21, 2007, CITY COUNCIL MEETING, SPE- CIFICALL Y ADDRESSING THE SIX PROPERTIES FROM THIS EVENING AND ANY OTHER INFORMATION THE ASSESSOR BELIEVES APPROPRIATE. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried Public Hearing to Consider Approval of a Resolution Ordering the Ida Circle and Trunk Highway 13 Improvement Project and Preparation of Plans and Specifications. Assistant City Engineer Poppler displayed location of proposed project. Explained why properties non- adjacent to Ida Circle should be included in the project. Commented on age of septic systems on the prop- erties. Noted that the Assessment Review Committee recommends 100% assessment on a unit method. Reviewed the proposed schedule for the project. Reviewed costs and that funding sources would be from assessments and the Trunk Sewer and Water Fund. Distributed a letter that was received from a resident for the public hearing. Comments: Erickson: Commented about the process of seeking bids at this time and conducting an assessment hear- ing at a later time. Haugen: Clarified that the Council was consider the approval of the preparation of plans and specifica- tions. After those plans and specifications are completed it will be brought back to the Council for approval followed by the bid process. Hedberg: Commented that these are the first existing homes in the annexation area that are having street and water improvements and the process will be repeated over the next several years as orderly annexa- tion is implemented. MOTION BY MILLAR, SECONDED BY HEDBERG TO OPEN THE PUBLIC HEARING. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried and the public hearing opened at 8:14 p.m. Eric Nordin, 17191 Langford Blvd. Stated he has owned his home for 28 years. Thanked Poppler and Engineer Thongvanh for doing a good job. Commented that from his perspective he will have about $45,000 into the project by the time water and sewer is connected to his home and he could replace his septic system twice for that amount of money. Stated he has a problem with that. Stated he is not part of the petition that Ida Circle submitted and would prefer that the group along TH 13 be considered sepa- rately. Believes the project could be tabled indefinitely; and if the project proceeds, would prefer that the City shoulder some of the cost. Appreciates that there are some credits coming to him due to his septic system being less than 20 years old. David Criswell, 17180 Ida Circle. Stated he signed the petition and his wife is opposed to it. Stated he believed it was a petition to bring awareness about updating to City sewer and water and that it made sense at the time because of new development coming. Believes the petition was only a step ahead of the City approaching the homeowners. States there have been other projects where there has been compen- sation to homeowners for hooking up to services and he does not want it held against the homeowners that they were bringing it to the City because it made common sense to do it sooner rather than later. Hopes the Council will consider it in fairness. Believes the process of assessment for the whole financial package is reactionary. 8 City Council Meeting Minutes May 7,2007 DRAFT Jim Fry, 17173 Ida Circle. Stated he was originally in favor of the petition, but is stunned by the price. Believed the project was citizen-driven and up to them if they no longer wanted to do it rather than the City going ahead to do it anyway. Asked for confirmation if the project would occur and when. If the project is not going to happen, he needs to put improvements into his well. Stated he was frustrated at the March neighborhood meeting with the lack of information. MOTION BY LEMAIR, SECONDED BY MILLAR TO CLOSE THE PUBLIC HEARING VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried and the public hearing closed at 8:22 p.m. Comments: Millar: Asked how many residents are in favor of the project. Poppler: Replied that at the information meeting, five of eight residents on Ida Circle were in favor and seven of nine at the meeting signed a petition for the improvements. Noted that he expected more people at this public hearing to express opinions to help make a decision. Millar: Asked if there is any precedent for what a resident would pay that is not in a development. Poppler: Replied that costs are escalating and the City has not done a project like this since establishing the City. Stated he checked with the City of Savage and they report doing a similar project and the cost was $30,000. Millar: Asked if the property was assessed at 100%. Teschner: Commented that all projects in the City since the 1970s have been assessed first-time im- provements at 100%. Cost of sewer and water compared to septic systems and wells is higher, but noted that the projects include associated improvements such as new streets, curb and gutter, storm sewer, sewer and water which contribute to the cost. Millar: Stated that this development is an island with new development around it that will be connected to City services. Stated it makes sense to do it now as it won't get any cheaper and the improvements are going to happen. Precedence is to assess at 100% so it is appropriate to do that. Erickson: Asked about the timeline for making the decision. Poppler: Replied it would be September or October after the assessment hearing is held and the project is considered for award. Teschner: Stated that statutory timelines are six months to award the bids after improvements are or- dered; then one year to start construction. Albrecht: Stated that staff is planning for the second meeting of October to award the bid and an assess- ment hearing would be held before the bid is awarded. Actual costs to residents would be known at that time. Teschner: Noted that interest on assessments would not begin until mid-2008. Erickson: Commented on a resident who thought he should not pay full cost because the project would run along a trunk line and noted that the City would be paying for trunk cost. Teschner: Confirmed that part would not be assessed and there will be credits for septic systems and wells that are less than 20 years old. Erickson: Believes the four lots not on Ida Circle don't get benefits from the resurfacing of the road and that if the development had been in city limits at the time it was built, the developer would have given funds. Teschner: Replied he is not sure that Ida Circle is developed to the standards of the City in our specifica- tions for improvements so it would not be similar roads. Albrecht: Stated this street is in better condition than many of the City streets, but the reconstruction of the road is driven by installing sewer and water. This situation has not been encountered before and as the 9 City Council Meeting Minutes May 7, 2007 DRAFT City moves west with annexation, similar situations will arise and the Council's decision for this area will set the precedence for other areas of the township. Erickson: Asked for the same consideration as if the homeowners were part of the City at the time they were built. Teschner: Noted that at the time the improvements were made, sewer and water would have been re- quired. If looking back to the time when sewer was not in place and the City initiated the improvements, 100 percent of the cost for street restoration and sewer and water was assessable. One hundred percent assessment would be consistent even if this parcel had been in the City prior to the installation of sewer and water. Erickson: Reiterated that if it had been in City limits initially and we had allowed a developer to build with- out sewer and water, and the City had to tear out the street to put in sewer and water, we would have as- sessed at 100% so would be treating them the same as if they had been in the City all along. Teschner: Affirmed. LeMair: Asked for clarification of a comment made that for the four properties not on Ida Circle that if im- provements were not made now, they would be at some time. Asked if it would be required for those prop- erties. Teschner: Replied that typically when utilities are abutting the area, the area should be an initiated public improvement project. Policies of the City are not to leapfrog, but to provide service to an entire area to al- low economies. At some point in the future, the area will be served with sewer and water and a construc- tion project of four properties would be more costly. The Council has a option to give credit for curb and gutter and such amenities for those four properties. leMair: Asked if the project will be creating value equal to the assessment. Teschner: Replied the appraisals have not been completed yet. leMair: Stated that knowing the City is trying to eliminate wells and septic systems in the community, it will have to be done some time and it will be more expensive later. Favors ordering the preparation of plans and getting bids and perhaps some variables can be considered. Hedberg: Concurs with LeMair. Noted that factors to be examined have been identified and when bids are received and costs known, more things can be considered. Believes it is in the City's and neighbor- hood's interest that it happen reasonably soon. Stated that when the final assessment hearing is con- ducted, the Council can consider all factors of how to administer the assessment. Haugen: Agreed the timing is appropriate to move forward. Believes clear direction is needed on whether this will happen so people can plan accordingly. Concerned with the potential assessment figure and noted there has not been such an assessment in Prior Lake in many years, but plans and specifications will lead to a bid process which will lead to an assessment hearing. Stated the Council's charge is to consider the City's best interests and the total environment. MOTION BY HEDBERG, SECONDED BY MILLAR TO APPROVE RESOLUTION 07.089 ORDERING IMPROVEMENTS AND PREPARATION OF PLANS AND SPECIFICATIONS FOR THE IDA CIRCLE AND TRUNK HIGHWAY 13 IMPROVEMENT PROJECT. Poppler: Commented that because of the compacted time frame, the designs need to be done soon and surveyors will be on site soon and will engage residents to learn depths of residential hookups. RECESS Mayor Haugen called a recess at 8:50 p.m. 10 City Council Meeting Minutes May 7,2007 DRAFT RECONVENE The meeting reconvened at 8:59 p.m. OLD BUSINESS Consider Approval of a Resolution Authorizing Execution of Easement Agreements for: 1) CR 21 Trail Relocation, and 2) 150th Street Lift Station Access. Public Works Director Albrecht presented the request for an easement agreement to realign a trail along CR 21 due to CR 21 reconstruction that would involve a cash reimbursement and landscaping. Another easement was requested along 150th street to be able to access a City lift station involving shifting of a street light and removal of trees and embankment fill to stabilize a slope. Comments: LeMair: Seems a fair way to accommodate the situations involved. Hedberg: Negotiated a favorable conclusion. Millar: Will support. Erickson: Glad to see this come to good conclusion. Haugen: Good to see final resolution. MOTION BY MILLAR, SECONDED BY LEMAIR TO APPROVE RESOLUTION 07.090 AUTHORIZING EXECUTION OF AN EASEMENT AGREEMENT FOR THE CR 21 TRAIL RECONSTRUCTION. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. MOTION BY MILLAR, SECONDED BY LEMAIR TO APPROVE RESOLUTION 07.091 AUTHORIZING EXECUTION OF AN EASEMENT AGREEMENT FOR 150TH STREET LIFT STATION. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Consider Approval of a Resolution Accepting the CR 21 Commercial/Industrial Development Master Plan. Public Works Director Albrecht presented a proposed master plan for CR 21 commercialj industrial de- velopment. Noted that CR 21 will become a more important corridor for the City when the segment from TH 169 is completed. Described the properties involved and issues related to those properties, the vulner- ability of the wellhead protection area, properties that need clean-up and consideration of annexation in Credit River Township. Comments: Millar: Asked if TIF financing would be a problem. Snook: Replied he is trying to discover TIF possibilities now to learn whether the City could establish a redevelopment district or a renewal and renovation district. A redevelopment district would be for a term of 26 years and a renewal and renovation district would be for 16 years. A redevelopment district has more qualifiers about properties that would qualify for substandard conditions. An architect and engineering firm is doing a survey to ascertain substandard buildings. Millar: Asked what will drive the installation of sewer and water. Albrecht: Replied that the industrial park has never generated the ability to extend sewer and water. Millar: Stated the City should contact the Credit River Township to learn its intentions. Haugen: Stated that Hedberg, Boyles and himself met with Maas recently to share the agenda report and believes the township board may be discussing it at its meeting tonight. 11 City Council Meeting Minutes May 7,2007 DRAFT Hedberg: Agreed that CR 21 is becoming a major transportation artery out of Prior Lake and believes that makes it an ideal spot for development. Noted the Council often talks about employment in the City as a quality of life issue and hopes this plan can be realized over the next several years and attract businesses and developers. Stated it is a significant amount of property where we can make a difference over the next several years. leMair: Approves the City putting together a plan and agrees it is a great opportunity to add valuable commercial and industrial property. Noted the City is investing millions of dollars in wells and the water supply and needs to protect the wellhead area and know where wastewater is going. Stated the property that needs cleaned up is not in the City's jurisdiction. He is leery of taking on a problem that the County is having trouble with cleaning up, but believes the current condition might prohibit anyone else from building there. Erickson: Concurred with the need to communicate with Credit River Township to learn their plans for the property, that the wellhead area needs protection and that the Svoboda property should be annexed and the City should clean it up. Albrecht: Noted there are many code issues on that property. Erickson: Asked if the code issues would be the City's problem or the landowner's. Albrecht: Replied that the County has had little success cleaning it up. Erickson: Commented that he drives by the property every day and that people assume it is Prior Lake and it appears to already be the City's problem. Believes the City should have the authority over it as well as the problem. Pace: Stated that the City has been trying to leverage the County to get it cleaned up and has not wanted to have the clean-up problems become the City's problem. Believes it would be gone about through a civil process where the City would clean it up and try to get an assessment against the property. Haugen: Commented on the historical perspective of development of the area and reminded listeners of the strategic plans for commercial and industrial acreage. Stated the proposed master plan coordinates the private sector and possible annexation. Agreed the Council should discuss annexation of the Svoboda property in the Spring Lake township. MOTION BY MILLAR, SECONDED BY HEDBERG TO APPROVE RESOLUTION 07.092 ACCEPTING THE CR 21 COMMERCIAL / INDUSTRAIL DEVELOPMENT MASTER PLAN. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried Consider Approval of a Resolution Accepting Feasibility Report for Industrial Park Improvements and Directing the Staff to Pursue Project Implementation by Development Agreement. Assistant City Engineer Poppler presented the feasibility report for the industrial park in the Welcome Avenue area and introduced Marcus Thomas from Bolton and Menk. Councilor LeMair recused himself from discussions due to his ownership of property in the area. Thomas emphasized that costs and associ- ated assessments would be substantial and that the recommendations presented provide only the funda- mental improvements. Noted that oversizing costs had been isolated from assessable costs. Commented on the sensitivity of the Markley Lake drainage area and that designs were developed to meet those re- quirements. Comments: Erickson: Stated it would be a great improvement to the City but is very expensive. Asked if there is any TIF that would work with this area. 12 City Council Meeting Minutes May 7, 2007 DRAFT Snook: Replied there could be a possibility of redevelopment, renewal and renovation or economic devel- opment TIF district which would have to qualify on job creation. Noted that information has been distributed to developers in the metro area. Erickson: Asked if the water line along Credit River Boulevard would be a dead end and if it would impact water quality. Poppler: Replied it would be connected across CR 87 to tie into the Deerfield Industrial Park area; or if a Credit River annexation occurred, a water line would be continued through that. Albrecht: Noted that at a time in the future, the intersection of CR 21 and CR 87 would be improved and that the water main would be brought along CR 87. Erickson: Asked what additional cost would be involved to the City if the incremental approach of develop- ing the industrial park is used rather than developing the entire project at once. Albrecht: Replied the incremental approach was considered when staff realized a full assessment ap- proach would require City subsidy to prove a sustainable level. If development is used to bring sewer and water through the industrial park with the City participating in extension costs and oversizing costs, it would be similar to development of Deerfield Industrial Park. The cost to the City would be pre-technical work with developers. It would result in pushing road construction to the future. Believes that utilities assess- ment is sustainable and would protect the water supply and appears to be supported by property owners. Delaying processes gives staff time to engage property owners about easements which would reduce costs. Hedberg: Commented that this is a complicated project and the City is not going to spend millions to do something fast now. Agrees the wellhead protection area needs to be addressed. Believes we need to take an incremental approach to get it going. Commented on the many pieces that need to come together and stated he is enthusiastic about the process and pleased with the work done so far. Millar: Stated it is good to have a master plan and agrees this appears to be an ambitious project. Stated the incremental approach would be the best way to go and asked about the risks to the City. Albrecht: Replied one risk is related to wellhead and water system and another is the roadway and re- building the streets. Stated developers need a guarantee that streets are coming. Believes financial risks are shared by both private and public entities. Millar: Asked what will happen if development moves slowly. Albrecht: Believes there are three or four parties that will agree to the initial sewer development and the Council can then evaluate smaller projects. Noted the City could choose to initiate a project to finish up a segment. Believes the City can move the project forward without substantial tax impact to residents if it is done incrementally. Noted that development contracts would be presented for Council approval at each step so opportunities for reviewing success of the project will be present. Haugen: Stated that the additional acreage, buildings and employment will be an opportunity for improved quality of life. Supports the incremental approach and stated the Council will need to consider what kind of financial commitment will be needed to make it happen. MOTION BY HEDBERG, SECONDED BY MILLAR TO APPROVE RESOLUTION 07-093 ACCEPTING FEASIBILITY REPORT AND CONSIDERING DEVELOPER INITIATED PROCESS FOR UTILITY PARK EXTENSION. VOTE: Ayes by Haugen, Erickson, Hedberg and Millar. The motion carried. MOTION BY HEDBERG, SECONDED BY MILLAR TO DIRECT CITY STAFF TO PREPARE A PROCESS AND STEPS FOR IMPLEMENTING THE EAST END COMMERCIAL INDUSTRIAL DEVELOPMENT MASTER PLAN AS PRESENTED; AND ISSUES FOR INCLUSION ARE: 1) COMPLETE THE 13 City Council Meeting Minutes May 7,2007 DRAFT SCHEDULED CR 21 IMPROVEMENTS; 2) INSPECT THE PROPERTY FOR TAX INCREMENT PURPOSES; 3) PROCEED WITH THE PRIVATE DEVELOPMENT INCREMENTAL APPROACH AGREEMENTS AS A MEANS OF BRINGING INITIAL WATER AND SEWER TO THE AREA; 4) EXPLORE POTENTIAL ANNEXATION OF CREDIT RIVER PROPERTY WITH THE INVOLVEMENT OF CREDIT RIVER TOWNSHIP AND THE RESIDENTS; 5) CONSIDER ANNEXATION OF THE ABHE/SVOBODA PROPERTY AND WORK WITH SVOBODA TO ADDRESS THE CODE VIOLATIONS AND DEVELOPMENT POTENTIAL OF THAT PROPERTY; 6) INITIATE DISCUSSIONS WITH THE SNELL FAMILY ABOUT DEVELOPMENT OF THEIR PROPERTY IN THE FUTURE INCLUDING THE USE OF PUDs; 7) EXPLORE CREATION OF A NATURE AREA AROUND MARKLEY LAKE BY A CONSERVATION EASEMENT; 8) PURCHASE PROPERTY ADJACENT TO MARKLEY LAKE; 9) PROVIDE FOR WELLHEAD PROTECTION INCLUDING FUNDING FROM WATER RATES IN THE LONGER-TERM PICTURES; AND OTHER STEPS AND ISSUES AS CITY STAFF MAY IDENTIFY. Erickson: Clarified that one of the items in the motion is to purchase property and asked if the motion should say to purchase, or to look into the possibility of purchase. Hedberg: Replied the motion is to layout a process and steps to complete the master plan and issues for inclusion are those listed. VOTE: Ayes by Haugen, Erickson, Hedberg and Millar. LeMair abstained due to his recusement from the topic. Consider Approval of a Report Recommending a Process and Timeline for Preparing Recommenda. tions Regarding Dock Location/Regulations. Assistant City Engineer Poppler presented a proposed process which would include public input and Lake Advisory Committee participation in development of dock regulations. Comments: LeMair: Will support. Stated that the presented process will lead us to a place to make an informed deci- sion. Hedberg: Commented the process seems costly in terms of staff resources and out-of-pocket spending and he is not convinced it will lead to a clear direction forward. Millar: Commented it was a good plan but wonders if a couple of informal meetings would give the same feedback and is uncertain it will bring a resolution that is any different from current practice. Erickson: Stated the City needs to have a dock ordinance and the process and timeline is good. Asked if the June 19 meeting would be a public hearing. Boyles: Replied it would not be as formal as a public hearing. Erickson: Asked if the meetings would be published, open for public input and whether or not the Council could be present. Boyles: Replied that the meeting can be posted and the Council can be present. Erickson: Commented that announcements in the Wavelength and Prior Lake American would be suffi- cient notification and people who are interested will be at the meetings. Haugen: Stated the City has gone through this several times in the past five years and has always re- sorted to the DNR guidelines. Believes we would go through the process and be where we are at and that the process will be a waste of money. Noted that fluctuating lakeshore levels lead to an insolvable prob- lems. Will vote to not spend the money. LeMair: Commented that staff hours are part of doing business rather than additional time. 14 City Council Meeting Minutes May 7,2007 DRAFT Haugen: Agreed, but the time could be utilized on a different project. LeMair: Stated the Council has wasted much time discussing it without coming to a conclusion and this would allow us to come to a conclusion so it doesn't have to be addressed again. Haugen: Noted that the Lake Advisory Committee went through a process and came up with a "no deci- sion." Believes if we are going to have advisory committees, we ought to listen to them. Hedberg: Stated he has spoken to the Lake Advisory Committee and appreciates the viewpoints and processes they have gone through. Doesn't think there is a blueprint that will solve the problem forever, but perhaps we could focus on an ordinance that includes a process for dispute resolution. Gave the ex- ample of the White Bear Lake regulations that specify how to settle disputes. Such a regulation could give residents a method to settle disputes without having to go to court. Stated he is not interested in spending the money on this proposed process, but would like to find solution. Haugen: Asked if the problem would have to be defined and parameters set if we are going to have some- thing that leads to resolution of conflict. Hedberg: Agreed. Believes a dock ordinance probably would mirror DNR guidelines and include a mechanism for dispute resolution. Haugen: Suggested the Lake Advisory Committee should propose recommendations for dispute resolu- tion. Pace: Stated she would like to explore what statutory authority the City has to do what White Bear Lake or Minnetonka have done for dock regulations. Commented that even though the City may require mediation or some kind of dispute resolution process, it does not necessarily mean the City would have the means to enforce the judgment. Believes we should learn if we have the statutory authority and then come up with regulations and process. Millar: Agreed this would not be like arbitration where parties agree to a process. Would be nice to come up with something where people would follow guidelines, but need to be able to enforce it. Pace: Noted it should be easy to determine how they were able to get their authority. Haugen: Stated it would be good to do the research and learn how they got the authority. Does not want to throw money at this, but will not oppose an idea that may work. Pace: Replied that the City can set up an adjudicative process (due process hearing) which helps in a civil finding that a property owner violated the City's standards. Erickson: Stated he has read the White Bear Lake regulations and they appear to be something that could work for us. Wondered if the fact that the lakes are completely surrounded by the City would give the City unusual enforcement abilities. Would like staff to look at the City's ability to enforce regulations and give a copy of the White Bear Lake regulations to members of the City Attorney and Council for review. Boyles: Stated there are two different approaches on the table - one is that we know what the problem is and are just looking for a solution; and the second is that we don't know the problem and would like others to tell us what the problem is so we can find the best solution. It is the Council's decision to determine which approach will be taken. Hedberg: Believes there should be public involvement for these kinds of questions. Also believes that public involvement through the Lake Advisory Committee is more likely to have a more positive result if we come up with a different approach. Having advance research about the authority and mechanisms for dis- pute resolution would make the LAC process more meaningful and more likely to come to a good result. MOTION BY HEDBERG, SECONDED BY LEMAIR TO DIRECT STAFF TO PURSUE THE PROCESS AS OUTLINED EXCEPT FOR THE COSTLY COMMUNICATIONS AND TO PREPARE INFORMATION REGARDING AUTHORITIES, DISPUTE RESOLUTION AND ENFORCEMENT IN THE EARLY STAGES OF THE PROCESS. 15 City Council Meeting Minutes May 7,2007 DRAFT Haugen: Clarified that the focus is on the dispute resolution aspect and the authority to enforce anything. Hedberg: Agreed. And added that the process of getting public engagement and discussion would have more direction and focus if we have information about the authorities and enforcement ahead of time. Haugen: Asked if the motion involved $11,500. Hedberg: Does not want to spend out-of-pocket money and would want most of that eliminated. Erickson: Clarified whether the Council would learn about authorities and enforcement at the May 15 meeting. Pace: Replied it would take until the first meeting of June to research the topic. Erickson: Asked to offer an amendment to the resolution to have a report from staff and the City Attorney at the first June meeting and consider the remainder of items based upon that report. Asked Hedberg to withdraw the motion until the report is received. Boyles: Noted that a public meeting could not be conducted by the first Council meeting in June. Haugen: Stated that the report could be received in June and no decision needed to be made beyond that at this time. Councilors Hedberg and LeMair withdrew the motion and second. MOTION BY HEDBERG, SECONDED BY LEMAIR TO DIRECT STAFF AND CITY ATTORNEY TO RESEARCH AND PREPARE A REPORT ABOUT THE CITY'S AUTHORITY, DISPUTE RESOLUTION AND ENFORCEMENT FOR DOCK REGULATION ORDINANCES FOR THE JUNE 4, 2007, CITY COUNCIL MEETING. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. NEW BUSINESS No new business was brought before the Council at this time. OTHER Community Events LeMair: Congratulated the Premiere Dance Academy on its Dads and Dolls performance at the State Theatre. Stated that it would be presented the last weekend in May at the high school. Complimented the organizers of the Rotary's DARE Bike-a-thon and noted that it raised twice as much money as planned. Haugen: Noted it had the highest participation ever. Erickson: Reminded the public of the Clean The Lake event on June 9. Stated the VFW Senior Luncheon was held today. ADJOURNMENT With no further comments from Council members, a motion to adjourn was made by Millar and seconded by LeMair. With all in favor, the meeting adjourned at 11: 15 p.m. Frank Boyles, City Manager Charlotte Green, Administrative Asst. 16