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HomeMy WebLinkAbout050707 MinutesCi ty Council Meeting Minutes May 7, 2007 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 Dir ector/City Engineer Albrecht, Assistant City Engineer Po p pler, P lanning Director Kansier, Finance Director Teschner, Assistant City Manager Meyer, Communications Coordinator Peterson and Administrative As si s tant 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 m aximum 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 a t 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 pr e- 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 A p proval of a Resolution Approving a Request for Bids for the Operation of Lak er Lines Bus Service. Boyles also r e- quested the addition of consent agenda 5M, Consider Approval of a Resolution Authorizing Exec u tion of a Se t tlement Agreement for the Vetter Lawsuit. MOTION BY MILLAR , SECONDED BY LEMAIR TO APPROVE THE AGENDA AS MODIFIE D . 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 Ci ty Council Meeting Minutes May 7, 2007 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 Ade l mann Street. D. C onsider Approval of Resolution 07 - 078 Authorizing Staff to Solicit Quotes for Well #9 Pump and I n- stallation. E. Conside r 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 Agre e m ent 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 Di s- posal by Donation and Public Sale. H. Consider Approval of Resolu tion 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 (Cour t wood Village Condominium) CIC Plat. J. Consider Approval of Resolut ion 07 - 084 Waiving Platting Requirements for the Subdivision of Property L o cated at 4070 140 Street NE (Squires Property). th K. Consider Approval of Resolution 07 - 085 Approving the Wetland Replacement Plan for CR 21 Reco n- struction from Adelmann to Frankli n 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 Ve t- ter La w suit. Councilor Hedb erg 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 Photo g- raphy, and 5 L, Consider Approval of a Resolution Adopting the Rev ised 2030 Vision and Str a tegic Plan, be removed from the consent agenda for comment. MOTION BY MILLAR , SE CONDED BY HEDBERG TO APPROVE THE CONSENT AGENDA AS MODIFIED . VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Hedbe rg: Stated he would like it to be on record that the update of the 2030 Vision and Strat e gic 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 Ci ty Council Meeting Minutes May 7, 2007 H edberg : Commented that aerial photograph is completed every three years and the information is impo r- 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 wi th 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 PH O TOGRAPHY; AND TO USE THE AERIAL PHOTOGRAPH SCHEDULED FOR THE WATER TREATMENT PLANT FOR PLACEMENT IN THE CITY HALL LOBBY. VOTE: Ayes by Haugen, Erickson, H edberg, 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 Cl ean Up Day scheduled for June 9. Asked for a proclamation to pr o mote 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 pro c lamation proclaiming June 9 a s the second annual “Lake Clean Up Day.” Comments: Haugen: A sked how the event for clea n ing up the shore would be promoted . Poppler: Replied it would be on the Website and in the Wavelength. Haugen: E ncouraged using all media mechanism s including th e 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 t he County, but the Counci l 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 A s sessor’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 cann ot be answered at tonight’s hearing, the hearing will be conti n ued on May 21, 2007. Bob Schmi t t, Scott County Assessor, introduced Mike Thompson, John Greenwood, Terence Chacka and Brian Connors from the Assessor’s office. C ommented on previous inequit ies in valuations and pro m ised they would be addressed before the assessments this year. Stated that fifty percent of the prope r ties in Prior Lake were appraised this year and the remaining fifty percent will be co m pleted next year. Noted that property o wners 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 b e lieved disparities e xisted . Also looked at agricultural areas and re sidential parcels of ten or more acres. Realize d that va l- ues around the lake need to be revalued and t ried to equalize land value. In the next year the Assessor’s office will review the remaining fifty pe rcent which w ill include lakeshore properties and a r eas around the 3 Ci ty Council Meeting Minutes May 7, 2007 lake. Explained ratios used in assessments and c ompared the ratios between 2006 and 2007 , not ing i m- provements in valuations. Stated there was a need to make increases in valuation in ce r t ain areas , but w hen loo k ing at mean appraised val ue compared to mean sales value, it shows they are closer to where they should be now. They will still address prop erties that are outside of 90 - 105 % ratios. Comments: Millar: Stated there is a marked imp rovement over last year and appreciates that the Assessor’s office m ade real effort s to correct pro b lems from last year. Hedberg: Asked if total appraised value means the sample that was appraised. Thompson: Replied that it reflects 406 qualified residen tial 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 t hen th ere will be similar types of appreciation in neighbo r hoods. Erickson: Commented that some valuations would increase becaus e they were not valuated appropriately b e fore. Thompson: Agreed that if properties weren’t assessed at 100% of market value to begi n with they will need an i n crease 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 va l ues are appealable tonight, not at the Truth - In - Ta xation 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 $139,5 00 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 squ are footage and is va l ued 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 wo uld 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# R250260010, dispute d zon ing classification on Lot 1 , Breezy Point . Stated there are four owners of that property and it is z oned seasonal, residential, recreational. Di s- put es residential classification as does not believe it is a buildable lot. Thompson: Will look at valuation and need s 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 Ci ty Council Meeting Minutes May 7, 2007 David Chro my , representing Village Market and Southlake 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 sche d- 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 A ssessor ’ s office w as conservative regar d- ing valu e, but when value is r ecogniz ed , assessment is required at that level and there is no provision for an incr e mental 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: A sked if Chromy agreed that improvement has been vast. Chromy: Stated he is not aw are of how other strip malls are valued. Connors: Explained the process as that when an owner calls, the appraisers double check the work to as sure it was done correctly, check the market information and the info rmation the owner su p plies. Stated that in this case the valuation is firmly supported by the marketplace and explained why . Reiterated that the A s sessor’s office is asking the Board to affirm the valuation. Schmidt: A dvised that Chromy can also appeal to the County Board and the Minnesota Tax Board and that a pet i tion 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 v alued at $ 699,000. G ave examples of two homes that were sold for less a nd stated their house is smaller. Stated the home i s not finished and the basement is unfi n ished. Thompson: Noted he spoke with Mr. Quam today and previously. Greenwood completed a co m parison grid on this property. Initial assessment was $ 698,100 a nd 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 year s . R eferred to an art i cle by Barb Marschall in the Prior Lake American that referred to an overall increase in total value of res i dential property in Prior Lake as b e ing 3.9 4 %. 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 attempt s 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: Ask ed about options to appeal. Thompson: E xplained the C ounty B oard of A ppeals. LeMair : C larified that Quam’s lot is a half - acre on the golf course. Quam: A ffirmed 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 info rmation 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 comparables provided by Quam and bring his decision about the valuation to the continuation of the hearing on May 21. John M yser , 16015 Northwood Road, a sked if there is a threshold of 15% for an increase of taxable ma r- 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 Ci ty Council Meeting Minutes May 7, 2007 M yser : Noted that last year he rais ed 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. Ken n Boyl es , 1 5 358 Breezy Point Road , PID # R 253480010 , 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 p roperty value has increased 38% per year for three years , e s pecially 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 asses s- ment of the house but Boyles does not understand how the valuation was calc u lated 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 purcha sed. K. Boyles: Re p lied 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 suspe cts that the pu r- chase price then becomes the price of the lot. Noted that Boyles is asking good questions about the met h- odology. K. Boyles: Stated he does not know how the sales information he has factors into the valuation. H auge n : Asked if the pro cess 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 co n- 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 app raiser 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 b uilding. Use the amount of footage on the lake as well as consideration of the t opogr a- phy , size of the lot, landscaping and w hether or not it is wooded, etc. Stated that when K. Boyles pu r- chased his lot for $185,000 five years ago, the builder had been trying to build for three years , and the diff i- 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 l ot is va l- ue d for less , K. Boyles lot has more footage even though daughter’s lot has more acr e age. . K. Boyles: Reiterated that there d oesn’t seem to be consistency in calculating the valuation of the land. Thompson: Replied that goes back to the equaliz ation that is being instilled. K. Boyles: Believes the lot was already equalized and s houldn’t be equalized every year. Thompson: Responded that he did the work this year a nd trie d to assure that similar lots are valued sim i- larly. In the coming year a ll of the lakeshore property will be revalued, but it was obvious that they n eeded to do something this year on the lake and it is more equal this year than it was last year. Stated he i n- spect ed this property and lower ed the value to $746,600 to be simila r to everyone else. Explained factors he used in calculating the valuation. 6 Ci ty Council Meeting Minutes May 7, 2007 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 t he property, but rather at how the valuation was determined. Other property owners in that proximity may want the knowledge. K. Boyles: A greed. Suggested the County w ould want to do that if lake property is going to be revalued next year and expects oth ers may want to know why it is what it is. Having it written down as a value per foot or som e thing, 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 moti on carried and the public hearing closed at 7:43 p.m. Comments: Hedberg: Stated the A ssessor ’s staff has made a serious effort to balance valuations across P rior Lake and there is p robably similar work to be done next year. Seems to be more imbalance in higher end pro p- erties. Commented he has lived on the lake for a long time and values on the lake have escalated dramat i- cally in the last five years. It is likely there will be a number of lake home owners here next year so the m ore that the process can be clar i fied 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 u p grading the performance level of the ir staff. Erickson: Concurred an d stated t his was a more enjoyable hearing than it was a year ago. U n der stands 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 Mar ket appraisal and asked how it is valued compared to comme r cial properties in other towns. Schmit t: 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 t he market place. Noted they went outside the l o cal area to find comparables 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 success ful, but it is not a windfall. C oncern ed 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 bus i ness in peril. Schmi t t: 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 info rmation they have. There is no option to apply increases in stages. If an adjustment is warranted, they will make it, but believe s the valuation is acc u rat e. LeMair : Stated he would like to see it reviewed further before the valuation is affirmed. Haugen: C omplimented the assessors that no complaints were made about service levels this year. Noted that they are working towards a fair valuation system. Qu e s tioned 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 Vi l lage Ma r ket valuation in one year rather than incremental increases over several years. Asked why there is not a sy s tematic 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 s tarted 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 valu a tion. 7 Ci ty Council Meeting Minutes May 7, 2007 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 , SP E- CIFICALLY ADDRESSING THE SIX PROPERTIES FROM THIS EVENING AN D ANY OTHER INFORMATION THE ASSESSOR BELIEVES A P PROPRIATE. 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 Pr o j ect and Preparation of Plans and Specifications. Assistant City Engineer Poppler d isplayed 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 pro p- erties. Noted that the Assessment Review C ommittee recommends 100% assessment on a unit method. Reviewed the proposed schedule for the project. Reviewed costs and that funding sources would be from a s sessments and the Trunk Sewer and Water Fund . Distr ibuted a letter that was received from a resident for the public hea r ing. C omments: Erickson: Commented about the process of seeking bids at this time and conducting an assessment hea r- ing at a later time. Haugen: Clarified that the Council was consid er the approval of the preparation of plans and specific a- tions. After those plans and specifications are completed it will be brought back to the Council for approval followed by the bid pro c ess. Hedberg: C ommented that these are the first existing homes in the annexation area that are having street and wa ter improvements and the process will be repeated over the next several years as orderly annex a- tion is implemented . MOTION BY MILLAR, SECONDED BY HEDBERG TO OPEN THE PUBLIC HEARING . VOTE: Ayes by Hau gen, Erickson, Hedberg, LeMair and Millar. The motion carried and the public hearing opened at 8:14 p.m. Eric Nordin , 17191 La ngford Blvd . Stated he has owned his h ome for 28 years. Thanked Poppler and E n gineer Thongvanh for doing a good job. Comment ed 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 sy s tem twice for that amount of money. Stated he has a problem with that. Stated he is not par t of the petition that Ida Circle submitted and would prefer that the group along TH 13 be considered sep a- rately. B e lieves the project could be tabled indefinitely; and if the project proceeds, would prefer that the C ity shoulder some of the cost. Appreci ates that there are some credits co m ing to him due to his septic system being less than 20 years old. David C riswell , 17180 Ida Circle . Stated he signed the petition and his wife is opposed to it . Stated he b e lieved it was a petition to bring awareness a bout updating to C ity 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 C ity approaching the homeowners . States there have been other projects where there has been com pe n- sation to homeowners for hooking up to services and he does not want it held against the homeowners that they were bring ing it to the C ity because it made common sense to do it sooner rather than later. Hope s the Council will consider it in fairness. Believes the p rocess of assessment for the who le financial package is r e actionary. 8 Ci ty Council Meeting Minutes May 7, 2007 Jim Fry , 17173 Ida Circle. Stated he was o riginally in favor of the petition, but is stunned by the price. B e lieved the project was citizen - driven and up to them if the y no longer wanted to do it rather than the City going ahead to do it any way. Asked for confirmation if the project would occur and when. If the project is not going to happen, he needs to put imp rovements in to his well. Stated he was frustrated at th e March neighborhood meeting with the lack of information. MOTION BY L EMAIR, SECONDED BY MILLAR TO CLOSE THE PUBLIC HEARING VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried an d the public hearing closed at 8:22 p.m. Com ments: Millar: Asked how many residents are in favor of th e project. Poppler: Replied that at the info rmation 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 th at he expected more people at this public hearing to express opinions to help make a d e cision. 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 ha s 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 proj ects in the City since the 19 70s have been assessed first - time i m- provements at 100%. Cost of sewer and water compared to septic systems and w e lls is higher, but noted that the projects include associated improvements such as new street s, curb and gutter , storm sewer, sewer and water which contri b ute to the cost. Millar: Stated that this development is an island with new development around it that will be co n nected to C ity services. Stated it m akes sense to do it now as it w on’t get any cheaper and the improv e ments 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 a fter the assessment hearing is held and th e pr o ject is considered for award. Teschner: Stated that statutory timelines are six months to award the bids after improvements are o r- dered; then one year to start construction. Albrecht: Stated that staff is planning for the second meeting of Oct ober to award the bid and an a sses s- ment hearing would be held b e fore the bid is awarded. A ctual costs to residents would be known at that time. Teschner: Noted that i nterest on assessments would not begin until mid - 2008. Erickson: Commented on a resid ent who thought he should not pay full cost because the project would run along a trunk line and noted that the C ity would be paying for trunk cost. Teschner: C onfirmed that part would not be assessed and t here 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. Te schner: Replied he is not sure that Ida Circle is developed to the standards of the City in our specific a- tions for i m provements so it would not be similar roads. Albrecht: Stated this str eet is in better condition than many of the C ity 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 Ci ty Council Meeting Minutes May 7, 2007 City moves west with annexation, similar situations will arise and the Council’s decision for this area will set the precedence f or other areas of the township . Erickson: A sked for the same consideration as if the homeowners were part of the C ity at the time they were built. Teschner: Noted that at the time the improvements were made, sewer and water would have been r e- quire d . 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 a s sessment would be consistent even if this parcel had been in the City prior to the installation of sewer and w a ter. Erickson: Reiterated that if it had been in City limits initially and we had allowed a developer to build wit h- out sewer and water , and the C ity had to tear out the street to put in sewer and water, we would have a s- sessed at 100% so would be treating the m the same as if they had been in the C ity all along. Tesch n er: A ffirmed. LeMair : Asked for clarification of a comment made that for the four properties not on Ida Circle that if i m- provements were not made now, they would be at some time. Asked if it would be required for those pro p- erties. Teschner: Replied that typically when utilities are abutting the area, the area should be an initiated public improvement project . Policies of the C ity are not to leapfrog , but to provide service to an entire area to a l- low economies. At some point in the future, the area will be served with sewer and water and a constru c- tion project of four properties would be more costly. The Council has a option to g ive 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 k now ing the Cit y 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 ge t ting bids and perhaps some variables can be considered. Hedberg: Co ncurs with LeMair . Noted that factors to be examined have been i dentified and when bids are received and costs known, more things can be considered. Believes it is in the City’s and neighbo r- hood’s interest that it happen reasonably soon. Stated that wh en the final assessment hearing is co n- ducted , the Council can consider all fa c tors of how to administer the assessment. Haugen: Agreed the timing is appropriate to move forward. Believes clear dire c tion is needed on whether this will happen so people can plan accordingly. Concerned with the potential assessment fi g ure and noted there has not been such an assessment in P rior L ake in many years , but p lans and spec ification s will lead to a bid process which will lead to an assessment hearing. Stated the Co uncil’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 reces s at 8:50 p.m. 10 Ci ty Council Meeting Minutes May 7, 2007 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 R e location, and 2) 150 Street Lift Station Access. th Public Works Director Albre cht 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. A n other eas e ment was requested along 150 street to be able to access a City lift stat ion involving shifting of a th street light and removal of trees and embankment fill to stabilize a slope. Comments: LeMair : Seems a fair way to a ccommodate the situ a tions involved. Hedberg: Negotiated a favorable conclusion. Millar: W ill support. Eri ckson: G lad to see this come to good conclusion. Haugen: G ood 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 H augen, 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 150 STREET LIFT STATION. TH VOTE: Ayes by Haugen, Erickson, Hedberg, LeM air 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 commercial / industrial d e- velopment. Noted that CR 21 will be come a more impor tant corridor for the C ity when the segment from TH 169 is completed . Described the properties involved and issu es related to those proper ties , the vulne r- ability of the wellhead protection area, properties that need cle an - up and consideration of annexation in Credit River T ownship. Comments: Millar: A sked 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 enginee r ing 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 r e port and believes the township board may be discussi ng it at its meeting tonight . 11 Ci ty Council Meeting Minutes May 7, 2007 Hedberg: Agreed that CR 21 is becoming a major transportation artery out of P rior L ake and believes that makes it an ideal spot for development. Noted the Council o ften talk s about em ployment in the C ity as a quality of life issue and hopes this plan can be realized over the next several years and attract bus i nesses and developers. Stated it is a significant amount of property where we can make a difference over the next se v eral years. LeMair : Approves the City putting toge ther a plan and agrees it is a great opportunity to add val u able commercial and industrial property. Noted the City is i nvesting millions of dollars in wells and the water supply and need s to protect the wellhead area and know where wastewater is going. Stated the pro p erty 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 buil d ing there. Erickso n: 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 a n nexed and the C ity should clean it up. Albrecht: Noted there ar e 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 d ay and that people a s sume it is P rior Lake and it appears to already be the City’s problem. Believes the City s hould hav e the autho r ity over it as well as the pro b lem. Pace: Stated that the City has been trying to leverage the C ounty 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 a s sessment against the property. Haugen: Commented on the historical p erspective of development of the area and reminded listeners of the strategic plans for commercial and industrial acreage. Stated the proposed master plan coord i nates the private sector and possible annexation. Agree d the Council should discuss annexatio n of the Svoboda property in the Spring Lake tow n ship. 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 D i recting the Staff to Pursue Project Implementation by Development Agreement. Assistant City Engineer Poppler presented the feasibility report for the industrial park in the Welcome Av e nue 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 e mphasized that costs and assoc i- ated asses sments would be substantial and that the recommendations presented p rovide only the fund a- mental improvements . Noted that oversizing costs had been is o lated from assessable costs. Commented on the sensitivity of the Markley Lake drainage area and that de signs were developed to meet those r e- 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 Ci ty Council Meeting Minutes May 7, 2007 Snook: Replied there could be a possibility of redevelopment, renewal and renovation or economic deve l- opment TIF district which would have to qualify on job crea tion. Noted that information has been distributed to developers in the metro area. Erickson: Asked if the water line along Credit River Bo ulevard would be a dead end and if it would impact water qua l ity. 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 d evelo p- 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 a p- 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 c ost to the C ity would be pre - technical wor k with developers . It would result in pushing road construction to the future. Believes that utilities asses s- ment is sustainable and would protect the water supply and appears to be supported by property ow n ers . D elaying process es gives staff time to e ngage 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 . Believ es we n eed to take an incremental approach to get it going. Commented on the m any 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 an d agree s 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 r e- build ing the streets. Stated developers need a guarantee that streets are coming. Believes financial risks are shared by both private and pu b lic entities . Millar: Asked what will happen if development moves slow ly. Al brecht: 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 in i tiate 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, bu ildings and employment will be an opportunity for improve d quality of life. Support s the incremental approach and stated the Council will need to consider what kind of financial commi t ment will be need ed 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: Aye s 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 A S PRESENTED; AND ISSUES FOR INCLUSION ARE: 1) COMPLETE THE 13 Ci ty Council Meeting Minutes May 7, 2007 SCHEDULED CR 21 IMPROVEMENTS; 2) INSPECT THE PROPERTY FOR TAX INCREME NT 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 AB HE /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 t he motion is to lay out a process an d 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 Repor t Recommending a Process and Timeline for Preparing Recommend a- 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 dec i- sion. Hedberg: Commented the process seems costly in terms of staff resources and out - of - pocket spend ing and he i s not co n vinced it will lead to a clear direction forward. Millar: Commented it was a good plan but wonder s if a couple of informal mee t ings would give the same feedback and is uncertain it will bring a resolution that is any different from current practi ce. Erickson: Stated the City needs to have a dock ordinance and t he process and timeline is good. Asked if the June 19 mee t ing would be a public hearing. Boyles: Replied it would not be as formal as a public hearing. Erickson: Asked if the meetings w ould be published , open for public input and whether or not the Council could be pr e sent. Boyles: Replied that the meeting can be posted and the Cou ncil can be pr e sent. Erickson: Commented that announcements in the Wavelength and Prior Lake American wou ld be suff i- cient notification and p eople who are interested will be at the mee t ings. Haugen: Stated the City has gone through this several times in the past five years and ha s always r e- sorted to the DNR guidelines. Believes we would go through the proc ess and be where we are at and that the process will be a waste of money. Noted that f luctuating lakeshore levels lead to an insolvable pro b- lems. Will vote to not spend the money. LeMair : Commented that staff hours are part of doing business rather th an additional time. 14 Ci ty Council Meeting Minutes May 7, 2007 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 a l low 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 dec i- sion.” Believes if we are going to have advisory co mmittees, we ought to listen to them. Hedberg: Stated he has spoken to the Lake Ad visory Committee and appreciate s the viewpoints and processes they have gone through. Doesn’t think there is a blueprint that will solve the problem fo r ever, but perhaps we could focus on an ordinance that includes a process for dispute resolution. Gave the e x- ample of the White Bear Lake regulations that specify how to settle disputes. Such a regulation could give res i dents a method to settle disputes without having to go to court. Stated he is not int erested in spending the money on this proposed proce ss , but would like to find sol u tion. Haugen: Asked if the problem would have to be defined and parameters set if we are going to have som e- thing that leads to resolution of conflic t . Hedberg: Agreed. Believe s a dock ordinance probably would mirror DNR gu idelines and include a mech a nism for dispute resolution. Haugen: Suggested the Lake Advisory Committee should propose recommendations for dispute resol u- tion. Pace: Stated she would like to explore what statutory authority the City has to do what White B ear Lake or Minnetonka ha ve done for dock regulations . Commented th at even though the City may require medi a tion or some kind of dispute resolution process , it does not necessarily mean the City would have the means to enforce the judgment. Believes we s hould learn if we have the statutory authority and then come up with regulations and pro c ess. Millar: Agreed this would not be like arbitration where parties agree to a pro c ess. Would be nice to come up with something where people would follow guideline s, 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 w ant to throw money at this, b ut will not oppose an idea that may work . Pace: Replied that the City can set up an adju dicative 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 W hite B ear Lake regulations and they appear to be something that could work for us. Wondered if the fact that the lakes are completely surround ed by the City would give the City unusual enforcement abilities. Would like staff to look at the City’s ability to en force regulatio n s and give a copy of the White Bear Lake regulations to members of the City Attorney and Council for r e view. Boyles: Stated there are two different approaches on the table - one is that we know what the problem is and are just looking f or a solution; and the second is that we don’t know the problem and would like ot h ers to tell us what the pro b lem is so we can find the best solution. It is the Council’s decision to determine which approach will be taken. Hedberg: B elieves there should be public involvement for these kinds of questions. Also believes that pu b lic involvement through the L ake Advisory Committee is more likely to have a more positive result if we come up with a different approach. Having advance research about the authori ty and mechanisms for di s- 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 Ci ty Council Meeting Minutes May 7, 2007 Haugen: Clarified that the focus is on the dispute resolution aspect and the authority to enforce an y thing. Hedberg: Agreed. And a dded 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 sp end 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 mee t ing. Pace: Replied it would take until the first meeting of June to research the to pic . 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 He d berg 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 Le Mair 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, 20 07, 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 Acad emy on its Dads and Dolls performance at the State Theatre. Stated that it would be presented the l ast 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 Lunc h eon was held today. ADJOURNMENT With no further comments from Council members, a motion to adjourn was made by Millar and s e c onded by LeMair . With all in favor, the meeting adjourned at 11:15 p.m. ____ _______________________________ ___________________________________ Frank Boyles, City Manager Charlotte Green, Administrative Asst. 16