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HomeMy WebLinkAboutAgenda & Minutes 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 REGULAR COUNCIL MEETING AGENDA June 4, 2007 6 p.m. m9i~YH~llm Work Session * 3:30 p.m. 2008-2012 Capital Improvement Program * The City Council may resume the workshop following the regular Council meeting. 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 21,2007, 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 Councilmember, or member of the public specifically requests that an item on the Consent Agenda be removed and considered separately, Items on the Consent Agenda are considered under one motion, second and a roll call vote. Any item removed from the Consent Agenda shall be placed on the City Council Agenda as a separate category. A. Consider Approval of Invoices to be Paid. B. Consider Approval of a Resolution to Approve Plans and Specifications and Authorize Advertisement for Bids for 2007 Park Improvements. C. Consider Approval of a Resolution Amending the Industrial Park Project Professional Services Agreement for Easement and Wetland Services. D. Consider Approval of a Resolution Eliminating the White and Green Ash as Significant Trees and as Recommended Replacement Trees. 6. ITEMS REMOVED FROM CONSENT AGENDA www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 7 . PRESENTATIONS A. Recognizing Fritz Shimota B. Status Report on County Road 42/ Trunk Highway 13 Intersection. 8. PUBLIC HEARINGS A. Consider Approval of a Resolution Vacating a Drainage and Utility Easement Located on Lot 1, Block 4, Sunset Hills Addition. 9. OLD BUSINESS A. Consider Approval of a Report Establishing a Snowmobile Task Force. B. Consider Approval of a Report Regarding the City's Statutory Authority to Require Mandatory Mediation and other Regulations Regarding Dock Issues. 10. NEW BUSINESS A. Consider Approval of a Resolution Approving the Combined Preliminary and Final Plat for Klongerbo Crossing. B. Consider Approval of a Resolution Approving the Combined Preliminary and Final Plat for Zimmerman's Addition, C. Consider Approval of an Amendment to the City Council Bylaws Regarding the City Council Forum. D. Consider Approval of a Resolution Awarding Bid for Operation of Laker Lines Bus Service, and Authorizing the Mayor and City Manager to Enter into a Modified Version of the Standard Contract. E. Consider Approval of a Report Regarding the Establishment of a Senior Center Task Force. 11. OTHER BUSINESS/COUNCILMEMBER REPORTS A. Community Events. 12. ADJOURNMENT City Council Meeting Minutes May 21, 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, Street and Utilities Supervisor Eldred, Parks and Fleet Supervisor Friedges, Water Resources Engineer Bintner, Finance Director Teschner, Assistant City Manager Meyer, Communications Coordinator Peterson and Administrative Assis- 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 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 that an Executive Session be added to the agenda as 11 B. 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 HEDBERG, SECONDED BY MILLAR TO APPROVE THE MAY 7,2007, 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. 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 Resolution 07.094 Accepting Rehabilitation Plans and Specifications and Author- 1 City Council Meeting Minutes May 21, 2007 DRAFT izing Advertisement for Bids for 2007 Lift Station Project. G. Consider Approval of Resolution 07-095 Approving the Final Plat and Development Contract for the Development of Land as a Planned Unit Development for Stonebriar. H. Consider Approval of Resolution 07-096 Approving the Final PUD Plan and Contract for Stonebriar. I. Consider Approval Of Resolution 07-097 Modifying The 150th Street Easement Access Agreement. J. Consider Approval of Resolution 07-098 Accepting Quotes and Authorizing Purchase and Installation of Well #9 Pump and Appurtenant Electrical Equipment. K. Consider Approval of a Resolution Approving Cost Participation with the City of Savage for the 150th Street / TH 13 Intersection Study. Councilor Hedberg requested the removal of 5A, Invoices to be Paid; and 5K, Consider Approval of a Resolution Approving Cost Participation with the City of Savage for the 150th Street / TH 13 Intersection Study, from the Consent Agenda. MOTION BY MILLAR, SECONDED BY LEMAIR TO APPROVE THE CONSENT AGENDA AS MODIFIED. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Hedberg: Questioned a bill paid for construction service for Kop Farm demolition. Noted that the house is not demolished yet and requested an update on the demolition. Friedges: Replied that a garage and two porch areas have been removed from the site which has allowed for better securing of the site. A company that was removing asbestos left one item and has to return to complete that item. Staff plans to start demolition of the house on Wednesday. Hedberg: Asked about the payment to the Scott County Treasurer for pay dump clean-up. Boyles: Replied that several years ago, the City operated the Prior Lake Pay Dump outside of the corpo- rate limits of the City. The dump was closed and capped off for a period of time; but at the time Scott County initiated improvements on the intersection of CR 44 and CR 27, removal and clean-up of the dump became necessary. The County paid $360,000 for the clean-up and since the City had ownership of the operations in the past, the County believed the City should participate in the responsibility to help with the clean-up. Three $90,000 payments are being made to the County for our share of the clean-up project. MOTION BY HEDBERG, SECOND BY MILLAR TO APPROVE INVOICES TO BE PAID. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Hedberg: Commented that the TH 13/ 150th Street intersection has safety concerns related to it. He sup- ports the study and wants to know where we are at on the process. Albrecht: Replied that last year the City received correspondence after an accident occurred in that area involving high school students. The accident spurred debate about planning for the intersection and with safety concerns, the Council added this study to the Capital Improvement Program last year. Stated that Savage did the same and the two cities will work in partnership with Savage as the lead agency because they have a frontage road issue to address and larger costs for land acquisition. Noted that Prior Lake has acquired the land it needs for realignment. Also stated that the study will include the other intersections on TH 13 north of Fish Point Road to correct dangerous areas. Hedberg: Asked if the potential improvements are budgeted in the CIP in either Prior Lake or Savage. Albrecht: Stated they are not, but that there are cooperative funds that MnDOT may use. If the cities have approved a layout for the project, they can apply for the funds. Haugen: Stated it is good to have the City working on this and asked if intersections can be posted differ- ently where drivers are passing on the right lanes. 2 City Council Meeting Minutes May 21, 2007 DRAFT Albrecht: Replied that they are posted according to state law and part of the problem is people who are not familiar with the road or people who do not follow the posting. Haugen: Queried whether the Prior Lake Rental area could it be marked more clearly. Albrecht: Stated that a frontage road would help in that area. Erickson: Commented for the benefit of drivers that when a roadway has a solid line, a driver cannot cross the line; and when it has a dotted line, a driver can cross it to make a turn or pass. MOTION BY HEDBERG, SECONDED BY MILLAR TO APPROVE RESOLUTION 07.099 APPROVING COST PARTICIPATION WITH THE CITY OF SAVAGE FOR THE 150TH STREET /TH 13 INTERSECTION STU DY. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. PRESENTATION Audit Presentation by Abdo, Eick and Meyers. Finance Director Teschner introduced Steve McDonald from Abdo, Eick and Meyers. McDonald dis- cussed the management letter with the Council and reported good results from the audit as well as good financial practices and policies. Stated the City received an unqualified opinion on its financial statements and there are no issues to report from the audit. Stated such results speak well for the processes the City has in place. Comments: LeMair: Congratulated Teschner and staff for management of finances. Erickson: Asked how the report could be available in the public format. Boyles: Replied that it could be the topic of "Inside City Hall" and the documents can be posted. McDonald: Stated he would prepare a PowerPoint for next year's presentation. Haugen: Suggested some of the graphs be placed on the Website. Millar: Synopsized the report to say staff is doing a good job of financial management for the City and when compared to peer cities, Prior Lake is above the curve. Stated that the City is following its vision for the future for strong financial management and has been doing it for years. Hedberg: Thanked McDonald for the report. Read the five-year goals from the 2030 Vision and Strategic Plan regarding financial direction. Stated that Teschner put effort into following the direction from the com- munity and Council. Noted that finances of city government are complex and both the Council and public are learning about the gold standards for financial standards that have been incorporated into the 2030 Vi- sion and a baseline is already established. Spoke of several ideas that can be implemented right away regarding sharing the information. Believes that, over time, citizens will better understand the gold stan- dards for financial standards. Haugen: Commented that the report is outstanding and depicts the direction of the City over several years, particularly since the inception of the 2030 Vision and Strategic Plan. Believes the focus on strong financial management supported by the 2030 Vision and financial analysis plays into the long term plan. Believes the systematic approach contributes to the lowest residential tax rate in the County and the im- proved bond rating over the past few years. Proclamation - Red Cross "Get Ready Campaign" and Presentation by Red Cross Chapter CEO Jan McDaniel Regarding Emergency Preparedness. City Manager Boyles noted that the newly revised 2030 Vision and Strategic Plan includes a new element of safe and healthy communities. Stated that the Red Cross has a program that is consistent with this vi- sion element. Introduced Jan McDaniel, CEO of the Twin Cities Chapter of Red Cross. McDaniel pre- 3 City Council Meeting Minutes May 21, 2007 DRAFT sented the Get Ready program and commented that the Red Cross wants to offer presentations to the pub- lic on safety as well as CPR training. Mayor Haugen read the Red Cross Get Ready proclamation. Comments: Erickson: Related his experience with a flood where the Red Cross stepped in with assistance and com- mented that he understands what the Red Cross can bring to a community. Millar: Commented that staff can help schedule the presentations and CPR training at city hall. Asked about the Get a Kit portion of the program. McDaniel: Replied that referred to people putting together a survival kit and the brochures explain how to do that. Consider Proclamation of National Public Works Week for the Week of May 20-26,2007. Public Works Director Albrecht explained it is National Public Works week. Spoke of the public works staff and the kind of work they accomplish on the 100 miles of City streets and 800 acres of City parks. Introduced staff who were present. Comments: LeMair: Congratulated the staff and noted that he receives compliments on snow plowing on winter days and the consistent good care of parks. Erickson: Expressed appreciation to the staff. Hedberg: Thanked the staff members who were present. Noted they do a great job and it is appreciated. Millar: Expressed appreciation to the staff. Haugen: Commented on staff's commitment to quality, the significant quantity of infrastructure, and the innovative approaches such as buckthorn removal on public properties and the no sand ice removal. Mayor Haugen read the proclamation acknowledging Public Works Week. PLAY Presentation. City Manager Boyles explained that PLAY (Prior Lake Athletics for Youth) is a volunteer organization. Introduced Randy Geister and Mark Schroeder. Schroeder presented the $150,000 donation from PLAY to be used for improvements at Ryan Park. Geister presented a PowerPoint depicting the growth of PLAY since its inception in 1972. Stated that PLAY wants to create a strategic vision for growth of the program. Informed the Council of participation statistics in baseball, football, lacrosse and soccer and the anticipated need for fields. Expressed appreciation for the efforts of the parks department in field development and maintenance and believes the PLAY donation will help Ryan be the "pearl" for community baseball and ath- letics in the future. Comments: Haugen: Thanked PLAY for their financial contribution of $250,000 over the past years and noted this cur- rent donation of $150,000 was paid in advance of PLAY's anticipated ability to give it. LeMair: Thanked PLAY for its financial contribution as well as the time and effort that Geister and Schroe- der put into the community. Erickson: Thanked PLAY for money, time, programs and dedication shown. Expressed amazement at the number of kids participating in the football programming. Millar: Noted the PLAY organization was helpful to his family and thanked Geister and Schroeder for keeping the organization growing. Believes it is a testimony to the quality of people in this community. 4 City Council Meeting Minutes May 21, 2007 DRAFT Hedberg: Noted that PLAY is a vitally important part of the community in both active and passive parks. Astounded at the huge growth of the programs and believes it is a testament to facilities and to parents who are willing to put in the time and money to support their kids. Haugen: Acknowledged that PLAY has grown over the years, but believes this is not encompassing the whole iceberg. Believes Council needs to continue commitment to developing quality fields in our commu- nity. Noted that PLAY has several thousand kids involved in one sport or another and if the population grows to 40,000, the child population will also grow and needs for fields for all ages will continue to grow. City Manager Boyles announced technical difficulty with the audio portion of the meeting. Communica- tions Coordinator Peterson stated the audio recording could be added to the video later and future play- backs of the meeting on PL TV 15 would be complete. PUBLIC HEARING Conduct Informational Hearing and Consider Approval of a Resolution Approving the 2008 - 2012 Capital Improvement Program (CIP). Finance Director Teschner explained the components of the Capital Improvement Program as well as how projects are entered into it and how the Council maintains control of it. Noted that projects fall into various categories and explained funding sources for those categories. Highlighted projects to be included in the CIP each year. Commented on the equipment matrix and explained that staff analyzes the 99 pieces of equipment owned by the City annually and modifies the matrix based on that analysis. Noted that the tax impact for purchase, repair or refurbishing of equipment is minor. MOTION BY MILLAR, SECONDED BY LEMAIR TO OPEN THE PUBLIC INFORMATION HEARING. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried and the public informa- tion hearing opened at 7:31 p.m. Comments: No person stepped forward to speak MOTION BY ERICKSON, SECONDED BY LEMAIR TO CLOSE THE PUBLIC INFORMATION HEARING. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried and the public informa- tion hearing closed at 7:32 p.m. Comments: Millar: Stated the CIP appears to be a sound financial document and that changes can be made in the future. Teschner: Agreed and noted that it is only a financial planning tool and the projects that come before the Council are approved each year on an individual basis. Millar: Stated that anything to do with energy conservation will have his support. Hedberg: Asked what impact will occur if the 2008 CIP approval is delayed for 30-45 days to allow further discussion, and stated he plans to suggest tabling of this item until a workshop is conducted about it. Teschner: Noted that timing of some tasks require it to be formally approved by the second meeting in June in order to move forward with feasibility studies and design for street reconstruction projects. Hedberg: Believes approval of Stemmer Ridge improvements should be deferred due to the change in development and the marketplace for residents. 5 City Council Meeting Minutes May 21,2007 DRAFT Teschner: Responded that the CIP attempts to accommodate anticipated development, but the developer is really responsible for initiating a request. If they do not, the associated City expense is pushed back a year. Albrecht: Commented that the Stemmer Ridge development is predicated on sewer extension from CR 82 and they cannot proceed until then. Noted that project is funded from Trunk fees and there are no City funds involved. Stated if the City does not manage the projects, there may be several at one time and we would be less able to accommodate them. Hedberg: Noted the equipment matrix, which is a forward-looking, proactive program to extend the life of the City's rolling stock, is already established. Stated he would like to see the City establish best practices and find innovative maintenance programs to further extend that life. Stated awareness of the work under- way to establish a parks equipment matrix. Noted these are the types of things he wants to discuss in a workshop. Teschner: Commented that staff has significant experience in setting up the matrix and extends the useful life and safety features of equipment on an exceptional basis. Reiterated that each piece of equipment is reviewed annually and things such as frequency of use of a snow plow can be a wild card. Haugen: Commented that Hedberg has expressed a desire to have a broader discussion in a workshop setting and a dialogue can be held about the matrix at that time. leMair: Stated he is comfortable with the projects outlined in the CIP for 2008. Asked if there have been recent discussions about a hockey rink for 2008. Albrecht: Replied the item was for a new outdoor rink. Noted it serves as a placeholder in the CIP for funding identified for hockey improvements and the City does not plan to initiate a refrigerated rink unless the Hockey Association comes forward to state they need it. leMair: Stated he would like to see it labeled as such. Commented he doesn't completely understand comments on the equipment matrix as his own experience is that it can sometimes be to the detriment of a company to retain equipment too long. Stated he relies on staff's professional opinion. Erickson: Stated the Council had a workshop on the CIP two weeks ago and does not understand why we need another. Believes that is micromanagement. Noted that when he went through the public works area, he viewed how much time and effort is spent on equipment and that we are getting 15-20 years out of some rolling stock. Believes staff is doing a great job on rolling stock maintenance. Supports passing the CIP. Haugen: Stated he favors a workshop because of recent developments that are not reflected in our CIP such as a financial investment with the Jeffers Foundation and School District in an interpretive center, growth of PLAY's programming creating a desire to look at the active park environment and facilities for athletics, and a senior citizen center. Noted that although he has confidence in staff and the equipment matrix, a process of dialogue will create broader understanding of rationale about what is being done. Millar: Agreed the Council should not micromanage but believes the questions posed do not lead to that. Stated he has left budget meetings with questions and not enough time to address them. Hedberg: Assured that he has confidence in staff and in the planning and financial management proc- esses, but the City spends huge amounts of capital funds and the CIP is one of the most important long term planning tools. Believes we need to give ourselves the opportunity to learn areas for improvement. leMair: Agreed to further discussion and would address a senior center, the equipment matrix and water park. Believes such items need to be put into a future CIP rather than changing 2008. Hedberg: Reiterated that the most important reason to have another workshop is to provide opportunity to ask questions. Haugen: Elaborated on the immediate issue of funding for an interpretive center which cannot wait until after 2008. Believes the Council should discuss if 50 minutes is adequate time for a workshop. 6 City Council Meeting Minutes May 21, 2007 DRAFT MOTION BY HEDBERG, SECONDED BY MILLAR TO DIRECT THE CITY MANAGER TO SCHEDULE A WORKSHOP WITH THE COUNCIL IN TIME TO RETURN THE CIP TO THE COUNCIL AT THE SECOND MEETING IN JUNE. Erickson: Expressed his surprise at having the issue come up at this meeting and queried why Councilors did not raise questions in the past two weeks. Millar: Replied there was no intent to blindside, but workshops often don't have enough time at the end to discuss the issues among the Council. LeMair: Agree questions should be answered, but perhaps not as a group and suggested that questions should be given to the City Manager prior to the workshop to help stay on track. Erickson: Asked that the motion be amended to have a CIP workshop as an additional workshop outside of the regular schedule. Hedberg: Accepted. Millar: Seconded. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. OLD BUSINESS Continuation of the Board of Appeal and Equalization. City Manager Boyles indicated that Bob Schmitt, Brian Connors and Mike Thompson from the Scott County Assessors office were present with reports about the properties that appealed their valuations. Stated the Council could identify which reports to query or ask the Assessor to review each of the property reports. Councilors requested further discussion of the appeal by Jeff White and South lake Village. Thompson: Stated that he contacted all of the residential appeals, addressed their questions and ex- plained the methodology of evaluation. Hedberg: Questioned methodology for non-buildable lakeshore property. Thompson: Replied that non-buildable lots are often buildable with variances. Stated this owner wants to classify the lot as non-buildable in a manner to retain that classification in the future. Stated that classifica- tion is based on the use of the property and value is based on the highest and best possible use of the property. It would have a different valuation if designated as never being able to be built on. Haugen: Questioned whether lot could be subdivided into five 10-foot parcels that gave access to non- riparian landowners. Pace: No. Thompson: Noted there are currently four owners of this property. Hedberg: Commented that it would be difficult to get a variance to build on a substandard lot and does not know if it is reasonable to think the lot could become buildable. Pace: Stated that we need to know if this was a platted lot of record when it was created. If it was platted prior to zoning ordinance with current restrictions, it can be buildable. Thompson: Noted the owners do not say they would build if it had variances, but want to file something that would state it would never be built on. That led the Assessor to believe that at some point it could be built on. Millar: Commented that it seems the valuation is being made on supposition. Pace: Stated that if it is a lot of record, the owner has to have reasonable use of their property and the City would have to give them minimum variances. Haugen: Asked if the property could be merged with adjacent property. Pace: Affirmed. City passed ordinance years ago that said lots in common ownership if substandard automatically becomes joined to the adjacent property by operation of law. 7 City Council Meeting Minutes May 21, 2007 DRAFT Hedberg: Agrees we do not have key information to know if it could be buildable or not. If it could not, then this is not appropriate valuation. Thompson: Requested permission to search the information from the Internet. Haugen: Moved to the appeal for South lake Village. Connors: Explained the valuation increase and asked if there were questions about the value itself. leMair: Clarified that the valuation amount was achieved by com parables. Connors: Replied that factors considered in addition to the typical income for this type of property are to consider the cost to develop the property and to consider what similar properties are typically selling for. Typically they use the sales price approach and verify it with expense information. Prefer not to use in- come approach because that information is confidential. Haugen: Clarified the property was purchased in 2003 and restored in 2004. Connors: Affirmed. Haugen: Asked if the building is the same as it was in November 2004. Connors: Replied that work on it continued and it is essentially the same as in January 2006. Haugen: Commented that resulted in a ten-fold increase in five years. Connors: Replied the rationale for such a large increase in one year is the confidence in the marketplace. Noted that in the past the property did not perform well and there were not enough sales of multi-tenant retail sales places in Prior Lake to compare to. Such sales occurred in late 2006 and 2007 and the market in Prior Lake can now be measured against the County and metro area. Believes investors would now look at it favorably and there is enough evidence to revalue it. leMair: Agreed the property needs to be assessed more than the $2.3 million valuation in 2005, but ques- tioned whether it now worth $8 million. Stated his opinion has to do with the ability of businesses to flour- ish. Noted there is still a 20 percent vacancy in the building. Not in favor of affirming this valuation. Connors: Reiterated that the valuation reflects what a property would most likely sell for and that the As- sessors separate themselves from tax burden and just do the valuation. Asked it the Council wanted to be kind to one of the businesses and not the others. Haugen: Responded that the Board of Equalization appreciates the guidance, but has to consider whether the valuation is correct with only 80% occupancy. Questions the valuation and the rate of increase over that period of years. Hedberg: Concurred that he questions the valuation. Stated the property used to be an eyesore and no business would move there. Stated the developer who bought it and people who moved in took a long term view in a risky situation. Believes that risk will reduce with a few more years of successful business, but questions whether an investor would pay full value because of the risk of that property at this time. Does not think market comparables take into account the risk of this situation. Haugen: Noted that when the property was sold, it went through a bankruptcy redemption period. Also noted that the property has substandard parking. Believes that $8 million is overstated. Erickson: Commented that he can see where the Assessor's logic derives from, but does not see the valuation of this property as $8 million. Noted that other properties are located closer to the traffic of CR 42 and TH 13 and this location does not have that volume of traffic. Connors: Replied he understands the need for traffic for a retail location as well as the 80% occupancy and that was considered by the Assessor's office. Millar: Agrees the valuation should not be at $8 million. leMair: Believes it is important to put valuation where it should be. Spoke of the cost of land and the cost to refurbish and gave examples of alternate valuations including income approach, land and building re- construction and vacancy approach. Would support valuation of $6,650,000. 8 City Council Meeting Minutes May 21 , 2007 DRAFT MOTION BY LEMAIR, SECONDED BY ERICKSON TO PLACE THE VALUATION OF THE SOUTHLAKE VILLAGE PROPERTY AT $6,650,000. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Pace: Noted that based upon the legal description of the White property, it appeared to be a lot of record at the time it was platted which would make it buildable with variances. Hedberg: Since it was a larger parcel, asked if it is a circumstance where by operation of law the different parcels were combined and now that it is split off, it is no longer a platted lot of record. Pace: Once it was combined, it could not be split back as it would be platted as a lot. Lots of common ownership by operation of law, if substandard, would be combined and could never be uncombined. We don't have full information on this lot. Believes the Planning Department should be consulted and informa- tion brought back to the Council. Thompson: Referred to 20 days from the first meeting to conclude the meeting so there would be ap- proximately six days to reconvene and rule on this. Pace: Asked if owners make a representation that they are willing to put a restriction on the land. Thompson: They suggested that the owner would like to make sure the lot was not built on in the future and would be willing to make some legal conveyance to assure that. Boyles: Commented that an underlying assumption is that the lot has different value if is buildable rather than non-buildable. Thompson: Affirmed the Assessors are treating it as a buildable lot when comparing to other lots. For equalization purposes, if the lot could never be built on, the valuation would change substantially. Pace: Clarified that the Planning Department would recommend that something would have to be recorded against the deed that the lot could never be built on if they wanted to assure that. LeMair: Asked if no taxes were to be paid on the lot if it were established to not be buildable. Erickson: Asked if the lot is platted. Pace: Replied that it appears to be. Erickson: Clarified that it is a lot of record and is buildable lot unless something comes up that is available to them in the next step of appeals. Thompson: Affirmed. Stated the owners can try to provide evidence that it is not buildable and never will be. MOTION BY LEMAIR, SECONDED BY HEDBERG TO AFFIRM THE VALUATION OF PID 25-026-0020 AS RECOMMENDED. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. MOTION BY ERICKSON, SECONDED BY MILLAR TO APPROVE THE VALUATION RECOMMENDATIONS FOR THE REMAINING FOUR PROPERTIES FOR WHICH APPEALS WERE FILED. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. MOTION BY HEDBERG, SECONDED BY MILLAR TO AFFIRM THE REMAINING 2007 VALUATIONS. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. RECESS Mayor Haugen called a recess at 9:08 p.m. RECONVENE 9 City Council Meeting Minutes May 21, 2007 DRAFT The meeting reconvened at 9:15 p.m. 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. Parks and Fleet Supervisor Friedges presented a request for the purchase of playground equipment. Stated he received five bids and noted that the lowest responsible bid meets current ADA Accessibility standards and CPSC guidelines. Explained that city staff will provide construction services as well as grad- ing and preparation work. Comments: Erickson: Asked if Flanagan Sales has installed Little Tyke equipment before. Friedges: Affirmed. Erickson: Asked if there is any reason they did not bid for landscape structures. Friedges: Unknown. MOTION BY MILLAR, SECONDED BY HEDBERG TO APPROVE RESOLUTION 07.100 ACCEPTING BIDS AND AUTHORIZING EXECUTION OF THE CITY'S STANDARDIZED CONSTRUCTION CONTRACT FOR THE INSTALLATION OF PLAYGROUND EQUIPMENT AT HOWARD LAKE AND WOODS IN THE WILDS PARKS. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Consider Approval of a Resolution Approving a Report Regarding Ryan Park Improvements. Parks and Fleet Supervisor Friedges sought authorization to complete improvements at Ryan Park as identified by staff and the Parks Advisory Committee in conjunction with PLAY, utilizing donations and Capital Improvement Program funding in the amount of $5,715.57. Comments: Millar: Will support. Erickson: Stated this is a great project and the City is receiving much value for the public with donations that have been received. leMair: Agreed. Hedberg: Acknowledged and recognized the contribution from PLAY and also thanked the Shakopee Mdewakanton Sioux Community for their generous contribution. Haugen: Thanked the people who were part of the Parks Athletic and Recreation Task Force. Believes they did an outstanding job of working with PLAY. MOTION BY LEMAIR, SECONDED BY HEDBERG TO APPROVE RESOLUTION 07.101 AUTHORIZING THE RYAN PARK IMPROVEMENTS. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. 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. Street and Utilities Supervisor Eldred explained the project and the difficulty in acquiring bids. Since only one bid was received, staff solicited quotes to acquire comparable pricing for the work to be done. Requested the Council to formally reject the bids and accept the lowest quote. 10 City Council Meeting Minutes May 21, 2007 DRAFT Comments: LeMair: Will support. Erickson: Questioned why the bid should be rejected when the same company submitted the bid as well as the lowest quote. Eldred: Only received one bid so wanted to ask for quotes for a comparable. Quotes show that L10yds is very competitive. Noted the project is less than $50,000 so is eligible for quotes. Pace: Noted the process was just trying to be efficient and expedite the project. Albrecht: Agreed it is a formality for staff to show the Council that we got the best price available. Seemed prudent to take the extra step. Because the project is under the $50,000 threshold, it is legally possible. Millar: Will support. Hedberg: Asked about funding. Albrecht: Replied that funds are coming from the Trunk Reserve Fund which has a healthy balance. Hedberg: Will support. Haugen: Will support. MOTION BY MillAR, SECONDED BY HEDBERG TO APPROVE RESOLUTION 07.103; 1) REJECTING BIDS AND ACCEPTING QUOTES, AND 2) AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY'S STANDARDIZED CONTRACT FOR 2007 WATER SYSTEM IMPROVEMENTS. VOTE: Ayes by Haugen, Erickson, Hedberg, leMair and Millar. The motion carried. Consider Approval of a Report Regarding City Boat Slips, Police Patrolling and Gating. City Manager Boyles presented the report regarding adding fencing as a security precaution relating esti- mated costs for gating, installation and locking. Evaluated the logistics and advisability of gating. Comments: Millar: Willing to move forward with patrolling and get a status report in mid-July and reevaluate at that time. Erickson: Will support the suggestion to proceed without gates. Asked about rules regarding park closing exceptions. Boyles: Stated he has the authority to extend the hours for particular occasions. Erickson: Noted that all reservations so far are for July 4th and wondered what time the park closes that day and what other dates might have extended hours. Boyles: Replied that hours are extended for July 4th and lakefront Days. Noted that public safety and maintenance personnel can be there at any time. LeMair: Will support. Asked about signage at boat accesses or other ways that information about the slips is being made available. Stated that when the topic is revisited in July, would like to have had something at the accesses. Haugen: Suggested boat slip information also be provided at Captain Jack's and the Wagon Bridge Ma- rina. Boyles: Replied the City places information at 15 different sites in the community including Captain Jack's and on the Website. Will also provide it at the boat accesses. Hedberg: Will support and agrees the Council should have a report in mid-July. Haugen: Stated the report should also show frequency of rentals. 11 City Council Meeting Minutes May 21, 2007 DRAFT MOTION BY MILLAR, SECONDED BY ERICKSON TO RELY UPON POLICE PATROL FOR SECURITY PURPOSES AND TO HAVE A REPORT BACK TO THE COUNCIL BY MID-JULY. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. NEW BUSINESS Consider Approval of 2006 Annual Finance Report and Management Letter. Finance Director Teschner presented the financial report and management letter. Comments: Hedberg: Noted he is looking forward to working with Teschner and Communications Coordinator Peter- son about how to communicate the financial gold standards to the public. Millar: Will support. Haugen: Noted the financial gold standards is clearly reflected in the results of the work. MOTION BY HEDBERG, SECONDED BY MILLAR TO APPROVE THE 2006 ANNUAL FINANCE REPORT AND MANAGEMENT LETTER VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Consider Approval of a Resolution Authorizing General Fund Transfer to the Severance Compensa- tion Fund. Finance Director Teschner presented. Noted that as a follow-up to the approval of annual finance report and management letter, the Council usually takes action to earmark General Funds to other funds for par- ticular projects. Requested transfer of funds to the Severance Compensation Fund to work towards a 50 percent funded status. Comments: Erickson: Noted that several governmental agencies are not funding their retirement as they should and he wants to assure that Prior Lake is doing the responsible thing and not passing along a financial burden to future generations. Hedberg: Concurred with Erickson's comments and asked what factors cause auditors to establish these high reserves for the General Fund. Teschner: Replied that the City needs working capital to fund expenditures before tax revenue arrives and the State has determined that 50 percent is needed for those expenditures. Noted that some cities borrow to meet their commitments until tax revenue arrives. Prior Lake also has the Contingency Fund for emer. gency situations. Explained that from a bond rating standpoint, anything above 40 percent is a strong indi- cation of financial strength. Millar: Will support the request. Asked for explanation of why we want to designate $400,000 for the 800 MHz system. Boyles: Replied that all metro counties are moving to this system. Scott County is putting up antennas and other equipment and Prior Lake will have to adapt to it to allow the system to work enabling rescue personnel to have a common communication system. LeMair: Will support. Haugen: Will support. MOTION BY HEDBERG, SECONDED BY LEMAIR TO APPROVE RESOLUTION 07-102 AUTHORIZING GENERAL FUND TRANSFER TO THE SEVERANCE COMPENSATION FUND. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. 12 City Council Meeting Minutes May 21, 2007 DRAFT Consider Approval of a Resolution Setting a Policy for Conducting Street Sweeping Operations in the City of Prior Lake. Water Resources Engineer Bintner presented an updated policy for street sweeping. Commented on new equipment and suggested revisions to the existing policy to allow for maximizing the use of the equip- ment and targeting areas for more frequent sweepings. Comments: Erickson: Questioned if the equipment only works with curb and gutter. Bintner: Replied that it can be used anywhere. Noted that curb and gutters serve as conduits of sediment to bodies of water so the equipment is intended for use with curb and gutter streets to mitigate that drain- age. Erickson: Asked if the plan will be modified to use the new equipment on streets that are upgraded and will have curb and gutter such as CR 12. Bintner: Noted that the County provides sweeping on its own roads. Albrecht: Further commented that Prior Lake maintains the water quality and such a street is the type of place we want to use it for to get the best value from it. leMair: Will support. Likes the foresight of writing a policy to suit the different types of equipment. Sup- ports the possibility of eliminating sediment that goes into stormwater ponds. Bintner: Noted that after a few years of use, the City can evaluate if it is better to remove the sediment from the roads or clear it out of the ponds. Right now we don't know. This could reduce the maintenance on the ponds. Hedberg: Commented that previously he didn't know that street sweeping was for anything other than a clean community. Did not know it was for water quality management or how important it is for our natural resources. Millar: Concurred. Noted he is concerned with the environment and water quality and street sweeping is one more step forward. Haugen: Will support. MOTION BY LEMAIR, SECONDED BY MilLAR TO APPROVE RESOLUTION 07.104 APPROVING A POLICY FOR CONDUCTING STREET SWEEPING OPERATIONS IN THE CITY OF PRIOR LAKE. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Consider Approval of an Ordinance Amending Section 901, Public Waters, of the City Code of Ordi. nances. Water Resources Engineer Bintner stated there have been many discussions about how to use near shore parking. Stated the Lake Advisory Committee has addressed the issue and made recommendations that were rejected by the DNR stating that we cannot regulate parking on the ice. LAC is revising its rec- ommendation to address parking on private shoreline or beaches. This proposed new ordinance prohibits parking on land within 20 feet of the ice shore boundary. Comments: Hedberg: Commented that it was a disappointing outcome to the LAC to have its first recommendation rejected by the DNR considering the time they invested to try to find a solution. This provides a rule that nearby landowners can apply and can be enforced. 13 City Council Meeting Minutes May 21, 2007 DRAFT leMair: Will support. Noted the Council approved an ordinance for parking on the ice 150' from shore which may not be realistic because vehicles cannot always get that far off the shore. This proposed ordi- nance accomplishes something that can be worked with. Erickson: Asked who is responsible for enforcement. Bintner: Replied it can be any peace officer and would generally be the Prior Lake police. Noted that it could be a DNR officer. Erickson: Asked about parking on one's own beach by one's own house. Bintner: Replied it would not be allowed by this ordinance. Erickson: Asked about the dates set forth in the ordinance. Bintner: Replied it is considered for the winter and the language was taken from the winter plowing restric- tions. Erickson: Noted that if there is no ice, it cannot be in effect. Bintner: Concurred and stated it allows the police to not have to argue about a thin layer of ice. A set boundary of dates helps. Millar: Will support. Haugen: Will support stating this sends a message and maybe creates a peace of mind for nearby resi- dents. Erickson: Noted it could really help at Sand Point where the City incurred damage on the beach due to vehicles parked in area that this ordinance would preclude. MOTION BY HEDBERG, SECONDED BY MILLAR TO APPROVE ORDINANCE 107.09 AMENDING SECTION 901 OF THE PRIOR LAKE CITY CODE. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. OTHER Community Events Hedberg: Reported the second annual Dive the Lake will be held on June 9 from 8 a.m. to Noon. Noted that state-wide interest in Dive the Lake is occurring. leMair: Reported the annual recital of Premiere Dance will be at the High School on June 2 and 3. EXECUTIVE SESSION The Council moved to executive session to discuss litigation on the special assessments from the 2005 street reconstruction project. Legal counsel was authorized to enter into agreement with parties that were part of the street reconstruction project special assessment appeal. ADJOURNMENT With no further comments from Council members, a motion to adjourn was made by LeMair and seconded by Hedberg. With all in favor, the meeting adjourned at 10:37 p.m. Frank Boyles, City Manager Charlotte Green, Administrative Asst. 14