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HomeMy WebLinkAboutAgenda & Minutes , City Council Work Session - 5:00 - 7:00 p.m. : FORUM: 7:00 P.M. - 7:30 P.M. REGULAR COUNCIL MEETING AGENDA Date: January 4, 1999 1. CALL TO ORDER...................................................................... 7:30 p.m. 2. PLEDGE OF ALLEGIANCE: 3. APPROVAL OF AGENDA: 4. CONSIDER APPROVAL OF DECEMBER 21, 1998 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 1999 City of Prior Lake Official Fee Schedule C. Consider Approval of 1999 City Council Directives Report. 6. ITEMS REMOVED FROM CONSENT AGENDA: 7. PRESENTATIONS: NONE. PUBLIC HEARINGS: VJ;ltC j-i-c.w' (!j()~- A~ J.jud ~ ()1/tJ1~ A. Consider Approval of Ordinan~ 99-XX Approving ari""'~'cial Map for t~e Ring Road located between Franklin Trail and Toronto Avenue. 8. 9. OLD BUSINESS: A. Consider Approval of Lake Advisory Committee Report relating to Lake Closure. ~ Consider Approval of Ordinance 99-XX Adopting 1998 State Building Code ~ and 1997 Uniform Building Code and Approving an Amendment to Title 4, Chapter 1 of the Prior Lake City Code to Replace Sections 4-1-1 and 4-1-2 G of Title 4, Chapter 1 of the Prior Lake City Code. ..C. Consider Approval of 1998 City Manager Performance Evaluation and Salary Review ~ t.. 16~SJQ&'egle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER 10. 11. 12. NEW BUSINESS: A. Consider Approval of Resolution 99-XX Approving an Amended Conditional Use Permit for Gleason's Gymnastic School on Property Located at 17001 Fish Point Road. B. Consider Approval of Report on County Highway 42 Corridor Study. C. Consider Approval of Appointments and Bylaws for 1999. OTHER BUSINESS/COUNCILMEMBER REPORTS: C~~C, Sess~rY\ ADJOURNMENT . '~V1f/\ /Dlf ((!.~c)r{. t'/,f-C $e5S5Li~ <WA) /'Ic'LlIIs,L^ ,f tJf,fJJ E9UifIYl'~ @\JH/ Je C/~LL) C /-,1 rn1tv 1-0 tl\.U 'Sr ))', '~ II (8)011--) O10499.DOC REGULAR COUNCIL MEETING MINUTES Date: December 21, 1998 (7:30pm) CALL TO ORDER and PLEDGE OF ALLEGIANCE: Present were: Mayor Mader, Councilmembers Kedrowski, Petersen, Schenck, and Wuellner, City Manager Boyles, Assistant City Manager Woodson, Assistant City Attorney Brokl, Planning Director Rye, Planning Coordinator Kansier, Assistant City Engineer McDermott, Finance Director Teschner, Recording Secretary Meyer. APPROVAL OF AGENDA: MOTION BY: WUELLNER, SECOND BY KEDROWSKI TO APPROVE THE AGENDA. VOTE: AYES BY MADER, KEDROWSKI, PETERSEN, WUELLNER AND SCHENCK THE MOTION CARRIED. CONSIDER APPROVAL OF DECEMBER 7.1998 MEETING MINUTES: MOTION BY: KEDROWSKI, SECOND BY PETERSEN TO APPROVE THE MINUTES OF THE DECEMBER 7,1998 CITY COUNCIL MEETING. VOTE: AYES BY MADER, KEDROWSKI, PETERSEN AND WUELLNER. SCHENCK ABSTAINED. THE MOTION CARRIED. CONSENT AGENDA: A. Consider Approval of Invoices to be Paid. B. Consider Approval of Treasurer's Report. C. Consider Approval of Building Permit Report. D. Consider Approval of Animal Warden Monthly Report. E. Consider Approval of Fire Call Report F. Consider Approval of Resolution 98-XX Authorizing City receipt of $15,000 from the Prior Lake-Spring Lake Watershed District Clean Water partnership Grant Program to assist in the funding of the Fish Point Park Channel Improvement Project. G. Consider Approval of an Agreement for Fire and Rescue Services for Credit River and Spring Lake Townships. H. Consider Approval of Reappointment of Members to the Lake Advisory Committee. I. Consider Approval of 1999 Cigarette License Renewals J. Consider Approval of 1999 Massage Therapy License Renewals. City Manager BOYLES reviewed the Consent Agenda items. BOYLES: Clarified the history of the Fire and Rescue Services contract with Spring Lake and Credit River Townships [Item G]. Noted that the program was a wonderful example of partnerships between governments to provide services to a broader public. Mayor MADER removed items A (Approval of Invoices to be Paid) and H (Approval of Reappointment of Members to the Lake Advisory Committee) from the Consent Agenda. MOTION BY: KEDROWSKI, SECOND BY PETERSEN TO APPROVE CONSENT AGENDA ITEMS B-G, I AND J. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER Council Meeting Minutes December 21. 1998 VOTE: AYES BY MADER, KEDROWSKI, PETERSEN, WUELLNER AND SCHENCK. THE MOTION CARRIED. ITEMS REMOVED FROM CONSENT AGENDA: A. Approval of Invoices to be Paid: MADER questioned whether an expenditure listed under Parks General Equipment (pg. 12) was the recently approved purchase of public works trucks. BOYLES: Provided clarification that this was in fact for Parks General Equipment approved by the Council earlier in the year. MOTION BY: MADER, SECOND KEDROWSKI, TO APPROVE ITEM A, APPROVAL OF INVOICES TO BE PAID VOTE: AYES BY MADER, KEDROWSKI, PETERSEN, WUELLNER AND SCHENCK. THE MOTION CARRIED. H. Reappointments to the Lake Advisory Committee. MADER: Stated that because Advisory Committees help the Council formulate policy, he believes it is appropriate to post a vacancy notice for all positions appointed by the Council. BOYLES: Noted that in the past those persons who have not expired their six year limit on the two- year terms and expressed interest in reappointment, have been recommended by staff without posting to the public. KEDROWSKI: Commented that it is generally in the best interest of the public as far as accomplishment by the committee to reappoint committee members when possible. Often times those people appointed to committees are just getting up to speed and becoming a valuable member of the committee after two years. The Council should possibly readdress its two year terms if any progress is to be made by the committees. MADER: Suggests consistency in appointing committee members that includes the general public, rather than arbitrary recommendations by the staff. KEDROWSKI : Reasoned that by posting for all committee appointments we are politicizing a voluntary position in terms of how we reappoint. It is part of the staff's responsibilities to recommend reappointment and we have to rely on staff. WUELLNER: In this case, he doesn't think staff acted arbitrarily or unilaterally since Councilmembers were called and asked their position on the issue. However, the Council wants the community involved. It is a policy decision whether to restructure the process and terms, and worth discussion at the January workshop. SCHENCK: Reminded the Council that there are cost issues in posting for all committees. Secondly, the Lake Advisory Committee is in the middle of evaluating the entire Lake document. He also stated that there is merit to the argument that a learning curve exists for committee members. 12219B.DOC 2 council Meeting Minutes Qecember 21.1998 PETERSE!!: supported posting for advisory positions by stating that Mr. Schenck's phiiosOphy could mean indefinite terms for committee members. MOTION BY: MADER. SECOND BY WUELLNER. TO DEFER THIS ITEM UNTIL AFTER POSTING THE POSITION TO THE PUBLIC. KEDROWSKI: Stated he wouid support the motion if this policy issue was further addressed at council Retreat. Mayor MADER and counciimember WUELLNER concurred. VOTE: AYES BY MADER, KEDROWSKI, PETERSEN AND WUELLNER, NAY BY SCHENCK THE MOTION CARRIED. ~RESENT A TlON~: NONE PUBLIC HEARINGS: A. Consider APproval of ordinance 98-XX APprovIng an Official Map for the Ring Road located between Franklin Trail and Toronto Avenue. MADER: Requested that no action be taken at this meeting and that the hearing be continued to 1/4/9g so that all affected property owners could be present. City Manager BOYLES introduced the item indicating that this was a Councii directive and further commented on the history of meetings leading to the Public Hearing and the location of the Ring Road. Options are (1) adoption of the Official Map as a planning document which alerts everyone to the intended use for the property: (2) purchase the right-of-way: or (3) do nothing. KANSIEJr Further expiained the purpose of the ring road is to divert local traffic flow from Hwy 13 and provide an alternate access for residences and businesses on the south side of HWY. 13. The object is to make the ring road a primary road system. Explained three road alignments and the discussions and recommendations by the Planning Commission. ~CHENCK and MADER: Questioned whether the Borka buiiding would have to be removed? KANSIER: stated that not with the adoption of the Official Map. She also noted that if the road was constructed, the issue becomes whether the parcel would be rendered unusable. The City would need to purchase the property in that case. BOYLE~: Clarified that the project probably would not happen untii at least 2003, the last year 01 the capital improvement program. Most likely is that it would occur with the private development of the site. SCHENCK: Asked about other intersection accesses along TH 13. BOYLES: Confirmed that the proposal is that on this leg of Franklin Trail access to southbound TH 13 will be cut off. 3 12219B.DOC Council Meeting Minutes December 21. 1998 KEDRDWSKJ: Asked why we didn't make a T-intersection at Toronto, and if a private devei~per would construct the road. KANSIER: Stated that the idea was to keep the traffic moving. She further stated that it could be constructed by the City or a private developer. WUELLNER: Provided input on traffic flow from the large residential area behind the bowiing alley. RYE: Reiterated that the primary justification of limiting Toronto is to have the ring road provide the major access for future commercial properties. WUELLNER: Concemed that the road will eliminate the commercial business we have. Prefers T- intersection. MADER: Questioned the costs versus benefits? KANSIER: Explained that costs and benefits were considered as part of the Official Map. MAnER: Asked if the adoption of the Official Map negatively affects properties if the road is not completed? RYE: Answered that the only imposition on the property until the road is built is that if improvements Were made to the property, the City would not be obligated to pay for that improvement when and if it had to purchase the Property. MADER: Asked whether it affected the Planning for the property? RYE: Answered that it could. KEDROWSKI: Stated that the City has an obligation to improve a bad situation in terms of our roadway system. The City either needs to build, or start investing the money to maintain. Money needs to be spent - the present system is unacceptable. Stated that there Were limited oPtions and that this looked like the best option without eliminating bUildings. MADER: Wants to know the other ways we can divert traffic. SCHENCK: Asked What was the impact of a Councit decision with respect to amending the alignment at a later date? RYE: Confirmed that an ordinance can be amended. He further stated that the Ring Road is part of the Comp Plan. The purpose of the Ring Road is to keep traffic flowing. WUELLNER: Suggested that a T-intersection would also make better accessibility to the eXisting businesses in Priordale Mall? ~ ~ 'f}' '. MAnER allOwed the public an opportunity to address the Council. LORRAINE BORKA: Stated Ihat the property is not for sale and that she wants to protect her property and tenants. She needs the income and wouid have nothing to sell if the Ring Road Was 12219B.OOC -- 4 Council Meeting Minutes December 21, 1998 completed. If the City would purchase it, what is fair value? She would always be short the income the building provides. Asked the Council to think about how they would? COLLEEN OTTMAN: Where does the road come off of Franklin Trail? She believes the Ring Road only benefits Park Nicollett. Prefers the "Do nothing" option. JIM McMAHON:(Runs auto body in Borka Building) Advised the Council that traffic runs pretty fast through there already. Traffic needs to be slowed down. This area also has significant pedestrian traffic because of the school. He suggested that a T-intersection might be the best solution. SCHENCK: Clarified that the City is not going to take the Borka building. He also stated that this is a map and doesn't authorize building of the road. However, he warned that the street as it exists is unsafe. He commented that it appears a T-intersection would have the least impact. WUELLNER: Believes the T-intersection provides the best alternative. PETERSEN: Supports T-intersection. Clarified for Ms. Ottman the impact on Franklin Trail. MOTION BY: MADER, SECOND BY SCHENCK TO CONTINUE THE PUBLIC HEARING TO THE JANUARY 4, 1999 MEETING VOTE: AYES BY MADER, KEDROWSKI, PETERSEN, WUELLNER and SCHENCK THE MOTION CARRIED. BOYLES: Clarified that staff was directed to estimate construction and right-of-way costs and provide a revised drawing using a T-intersection. The revised drawing is due at the January 19th meeting. B. Consider Assessment Hearing for 1997 Improvement Project 97-17 Pike Lake Trail, and Considering Approval of Resolution 98-XX Adopting the Assessment Roll therefore. City Manager BOYLES introduced the item and commented on the history of meetings leading to the Public Hearing this evening. This action would reduce project costs and reduce special assessments to the four benefiting properties because a change order reduced the project cost. The City Manager also read a written appeal of Holy Cross Lutheran Church for the record. MADER asked for comments from the attendees. There was no public input. MOTION BY: WUELLNER, SECOND BY SCHENCK TO CLOSE THE PUBLIC HEARING. VOTE: AYES BY MADER, KEDROWSKI, PETERSEN, WUELLNER AND SCHENCK THE MOTION CARRIED. MOTION BY KEDROWSKI, SECOND BY PETERSEN TO ADOPT RESOLUTION 98-XX ADOPTING THE ASSESSMENT ROLL THEREFORE VOTE: AYES BY MADER, KEDROWSKI, PETERSEN, WUELLNER AND SCHENCK. THE MOTION CARRIED. 12219B.DOC 5 Council Meeting Minutes December 21, 1998 AUDIENCE POLLED AND MADER MOVED AGENDA ITEM 10A TO THE NEXT ITEM ON THE AGENDA. (LIQUOR ORDINANCE) New Business A. Consider Approval of Ordinance 98-XX Adopting a New Liquor Ordinance for the City of Prior Lake. City Manager BOYLES introduced the item and outlined the history, proposed revisions and issues for discussion in connection with the staff report. MADER asked for public input. TOM BLACKMAR, Attorney for Lani Adler (Extra Innings): Stated that if the business is sold, any buyer of the business would be saddled with the expense of bringing the business up to the established $200,000 valuation. He requested a grandfather clause for any potential buyer. SCHENCK: Asked if the State issued the liquor license? BOYLES: Clarified that the City issues the license pursuant to State statute. KEDROWSKI: Supports the ordinance. Stated that Mr. Adler does have an opportunity to improve his property. WUELLNER: Questioned under Section 3-1-3, why a minimum $200,000 applies to free-standing buildings and if that $200,000 changes over time. What is the basis? BOYLES: Answered that the City is trying to make applicants place a certain investment in their business. The number would increase by Council decision. The Council could review this ordinance from time to time. WUELLNER: Asked why is food service not a part of that standard for a free-standing building? BROKL: Provided clarification that originally both applied. In discussions with Extra Innings we determined it may not be appropriate for both to apply in this case. That specific exception was then removed. KEDROWSKI: Offered further clarification by stating that the ordinance attempts to address the issue with number of seats, because of the complexity and effort in auditing cash receipts. Discussion occurred regarding specific language in the ordinance with respect to freestanding structures and minimum seats vs. cash receipts. SCHENCK: Commented that to allow businesses without food service would be counterproductive with the downtown redevelopment plan. MADER: Explained that in this ordinance we have eliminated the food requirement and minimum seating totally from the free-standing building. KEDROWSKI: Asked if that was done specifically for the benefit of Extra Innings? 12219B.DOC 6 ----;------------.---- --..- - Council Meeting Minutes December 21. 1998 BOYLES: Offered that he understood that the $200,000 investment was likely to result in an investment in food and liquor. WUELLNER: Questioned grounds for denial based on "Good moral character and repute" and whether denial based upon previous denial of an applicant within the last five years was subject to location. POLICE CHIEF O'ROURKE: Provided that the denial within the last five years applies nationally. The reference to moral character is statutory language. WUELLNER: Regarding when licenses are revoked, he questioned how was that developed. BROKL: Answered that that provision was developed by the City Attorney's office in conjunction with Police Chief. KEDROWSKI: Reiterated that with respect to seats versus gross receipts, if food service is required, we have to count receipts. This issue was further clarified and addressed by BROKL and O'ROURKE. WUELLNER: Concerned we are writing an ordinance around Extra Innings, when what we agreed was that it was important to include food service. O'ROURKE: Clarified exceptions clause with respect to food service and Extra Innings. We needed to take into account existing businesses. SCHENCK: Asked if enactment of this ordinance would mean a purchaser of Extra Innings would have to comply with the ordinance. O'ROURKE: Advised that if you added the words "freestanding structure" (3-1-3)(A)2 where Councilmember Kedrowski indicated. MADER: Offered that the City does not want to count receipts, and suggested that if the intent of the ordinance is violated in the future, we could come back to require gross receipts. MOTION BY: KEDROWSKI, SECOND BY SCHENCK TO ADOPT ORDINANCE 98-XX ADOPTING A NEW LIQUOR ORDINANCE FOR THE CITY OF PRIOR LAKE, AS AMENDED BY THE ADDITION OF THE WORDS "FREESTANDING STRUCTURE" IN SECTION 3-1-3 A(2). VOTE: AYES BY MADER, KEDROWSKI, PETERSEN, WUELLNER AND SCHENCK. THE MOTION CARRIED. OLD BUSINESS [MOVED FROM ITEM 90] D. Consider Approval of Resolution 98-XX Directing the Staff to Prepare an Ordinance with Findings of Fact for the Adoption of a Comprehensive Zoning Ordinance for the City of Prior Lake. 12219B.DOC 7 Council Meeting Minutes December 21. 1998 BOYLES presented the item and set out a brief history of the process and advised that it is the Staffs proposal that the Council direct staff to prepare an ordinance with findings of fact adopting the zoning ordinance. MADER Clarified that the Council would have additional opportunity to amend the Zoning ordinance and asked for public input. WUELLNER: Commented that it .was his understanding that the DNR would allow flexibility with respect to 20' versus 30' bluff setback requirement. Asked about the Planning Commission's recommendation? Concerned about requiring hardship criteria in requesting a variance. Secondly, the ordinance assumes that lot combination width is 90 feet, while shoreland rules say 75 feet. Suggests that lot widths at 75 feet would make more sense. ~YE: Advised that one draft had that language and that the language was taken out as recommended by the Planning Commission and directed by Council. MADER: Understood that the DNR wouldn't be acceptable to an overall 20' setback, except in special circumstances on a case by case basis. Lot combinations-Property owners with multiple lots still can request a variance. Both of these issues can be addressed by the variance process. KEDROWSKI: Asked whether the 6-month provision is in the ordinance. RYE: Answered that It is in the zoning code itself. MADER: Advised that lot combination is required or the DNR won't approve the zoning ordinance. He understood that the DNR didn't like the 6-month requirement, but would accept. WUELLNER: Reiterated his concern was lot width. KEDROWSKI: Provided input that front footage minimum for a 3-car garage is 86', which is the current trend and is probably the justification of the 90 foot lot width. WUELLNER: Asked again for comments on the bluff issue? MADER: Does not want to reduce DNR standard. A longer minimum would invite additional problems. SCHENCK: Asked how you measure Ordinary High Water (OHW) on a bluff property? RYE: Answered both horizontally and vertically and further explained that setback measured from top of bluff or OHW is horizontally. Further clarified bluff setback and ordinary high water. You can't get a lesser setback by applying the bluff ordinance. MOTION BY: MADER, SECOND BY KEDROWSKI TO ADOPT RESOLUTION 98-XX DIRECTING THE STAFF TO PREPARE AN ORDINANCE WITH FINDINGS OF FACT FOR THE ADOPTION OF A COMPREHENSIVE ZONING ORDINANCE FOR THE CITY OF PRIOR LAKE. MOTION BY KEDROWSKI, SECOND BY PETERSEN TO AMEND THE PROPOSED ZONING ORDINANCE REGARDING TOP OF BLUFF FROM 30' TO 25'. 8 12219B.DOC -il ~ Council Meeting Minutes December 21, 1998 PETERSEN: Clarified averaging within bluff situation does not come into' effect with adjacent houses. VOTE ON AMENDMENT, AYES BY MADER, KEDROWSKI, PETERSEN, WUELLNER and SCHENCK. THE MOTION CARRIED. VOTE TO PREPARE AN ORDINANCE WITH FINDINGS OF FACT FOR THE ADOPTION OF A COMPREHENSIVE ZONING ORDINANCE FOR THE CITY OF PRIOR LAKE, AYES BY MADER, KEDROWSKI, PETERSEN, WUELLNER AND SCHENCK. THE MOTION CARRIED. OLD BUSINESS: A. Consider Approval of Resolution 98-XX Adopting 1999 Prior Lake Budgets and Certifying Final 1999 City of Prior Lake Property Tax Levy to Scott County Auditor. City Manager BOYLES reviewed the staff agenda report as prepared and gave a brief overview to the public. , MOTION BY KEDROWSKI, SECOND BY SCHENCK TO ADOPT RESOLUTION 98-XX ADOPTING 1999 PRIOR LAKE BUDGETS AND CERTIFYING FINAL 1999 CITY OF PRIOR LAKE PROPERTY TAX LEVY TO SCOTT COUNTY AUDITOR. KEDROWSKI: Commented that there has been a 0% property tax increase except for transit levy over the last 5 years. Very commendable of staff, with respect to a developing community. Shakopee and Savage increases are both higher per capita than our City. This is a good but short- sighted budget. Prior Lake needs to develop a commercial/industrial tax base, or citizens will feel the hit over the long term. Also, cost of our infrastructure is significantly higher than most communities because of the Lake. The valuation issue needs to be addressed with the legislature because it has a direct impact on those with fixed incomes. The City has done a good job, but these issues need to be addressed in order to recognize where our future is. It is the Council's job to now build a policy for the future. WUELLNER: Concerned about cutting our contingency fund. If the staff can decrease general fund spending and increase that contingency fund, that would be ideal. SCHENCK: Discussed that this budget address the input of the community of today, but it does not address the community of the future. It is short-sighted. Reducing the contingency reserve is a concern of the City's bond council and auditors. Encourages staff to monitor spending, but the contingency fund needs to be brought up to minimum standards. MADER: Asked the difference in ad valorem taxes figure on page one versus proposed budget figure? TESCHNER: Provided clarification that the figure on page one is the correct figure. MADER: Questioned what portion of our property tax base is commercial/industrial? TESCHNER: Answered that the City's tax capacity valuation is approximately 10%. 12219B.DOC 9 Council Meeting Minutes December 21. 1998 -, MADER: Asked if the expense ($375,000) for storm damage had been included in this report. TESCHNER: Explained that it had been included except for those funds which will be reimbursed. MADER: Understood that the expenses due to storm damage was $375,000. TESCHNER: Further clarified that that is correct, but that those funds expended may be allocated to storm damage, but do not equate to $200,000 in additional expenses above and beyond normal maintenance. A lot of the $375,000 are losses, not necessarily expenses to the operating budget. MADER: Questioned if the City will recover about 90% from insurance and where those funds are going if it's not in the revenue budget. TESCHNER: Explained that a large portion will be recommended to the Council for the revolving equipment fund. MADER: Asked for clarification that these funds will come back to the Council for direction as to their placement. TESCHNER: Stated that the reimbursement funds would absolutely be allocated by Council direction. MADER: Provided the following comments and further explained his rationale regarding: (1) that homeowners and businesses pay very high property taxes, (2) that the City collects more than the amount needed to deliver City services, and (3) that spending can be reduced without reducing the quantity or quality of services we provide. 1. Do we have hiah propertv taxes? The average citizen in Prior Lake pays more property taxes than either Shakopee or Savage. The City takes a bigger bite out of the overall tax bill than other metropolitan cities by almost 50% more. Cites various League of Minnesota Cities statistics regarding Prior Lake property taxes in comparison to overall state figures. Cites Prior Lake as one of the highest taxed cities in the state. Seniors and retirees are being squeezed out of their homes by larger tax bills. Businesses won't come here because of the higher tax base. 2. Do we tax more than we need? Actual expenditures during 1996 were $5.312 million excluding transit tax. The proposed tax for 1999 also excluding the transit tax is $6.74 million. 27% increase over three years or 9% per year. This exceeds growth (2.5% per year). Most costs associated with growth are paid for by developers and specific property owners. Growth should not be used to justify budget increases. We collect more taxes for our general fund and accumulate surplus dollars. We've collected 9% more than needed in 1997. The 1998 surplus is expected to be approximately $200,000. On the average, we've collected 15% more taxes each year over four years than we needed during that time. Both staff and some Council members argue for higher taxes, but facts don't always justified the rhetoric. 3. Reduce spendina without reducina services to Citv. - Staff Consulting program has cost over $60,000 plus the hundreds of labor hours meeting with the consultant. This service does not benefit our citizens, and was not approved by the Council. The City has spent over $750,000 in legal fees during the time he has served on the Council, which dollars don't include staff 10 12219B.DOC Council Meeting Minutes December 21, 1998 involvement costs. The attorney advised in writing that a large portion of legal fees are a direct result of City mistakes or Council directed initiatives. The EDA Consultant has cost the City $90,000 over last three years, the City has paid $70,000 for legal fees for labor negotiations plus staff labor hours. Stated that these comments are not meant to criticize consultants individually, but whether consultants are used wisely. Provided the example that the Council has approved every request for purchase of capital equipment over the last three years. None are justified by a budget comparison with or without the equipment, and all proposed purchases were on the consent agenda. Believes these are not fiscally responsible expenditures. SUMMARY: (1) Taxpayers pay high taxes for what we get, (2) The City collects more taxes than needed, and (3) The City could reduce spending without a reduction in services. Further stated that the staff claims we are spending the same per capita as comparable cities, but that we must also compare other costs. There is no question an increased business base will help, but not if the tax contribution is squandered trying to obtain those businesses. Shortage of business is not an excuse for high taxes. Proposed to direct staff to cut the budget by further 5%. KEDROWSKI: Replied that the Mayor raises many issues, right or wrong, and that staff should have an opportunity to address. Requested that the Finance Director be given an opportunity to prepare a written response. Wants to hear the other side to the issues raised. MADER: Defended his position by stating that it's no secret the City has paid $200,000 in legal fees, and it's no secret the City spent over $60,000 on a personnel consultant. Offered to recess to give the staff opportunity to verify his calculations. KEDROWSKI: Addressing the legal fees issue, stated that broken down, for the many various things we use attorneys for, that he believes the expenses are legitimate, that they justify the returns when we are talking about the expertise we are getting, and that the staff can support it's expenditures. Further provided that high taxes are a direct result of a terrible tax base. There are many variables at issue here and to layout flat numbers and condemn our budgeting practices without allowing staff to qualify the expenditures is ridiculous. TESCHNER: Explained that the dollars the Mayor speaks of are relative. It's not as simply as saying "you are over-taxing the public". Staff budgets from a standpoint so that the City doesn't have a shortfall. An annual 2 or 3% is a reasonable working capital to come in at. The general fund budget in December bottomed out at $36,000. The auditors have advised that the City needs to be able to fund our operations based on a working capital reserve. The Council has tried to build a fund reserve over many years. The expenditure of surplus reserve dollars is a Council directed expenditure for special projects not provided for in the operating budget. The City has very large referendum expenses approved by the citizens. All those factors and others help to explain the disparity between the taxes in Prior Lake and those in Shakopee and Savage. MADER: Clarified that he did not say all the expenditures are bad, he said make it 5% better. The staff hasn't tried very hard. The reality is that the City has collected a surplus amount of tax dollars. WUELLNER: Expressed his wish that the Mayor had done all this research during the budget workshop, and not spring it on the Council before a vote. (1) A Prior Lake tax share being 75-80% higher than Shakopee/Savage is comparing apples to oranges because of the referendum, (2) the 12219B.DOC 11 Council Meeting Minutes December 21. 1998 surplus figures given indicate we are going in the right direction. Stated he can't support a 5% reduction based on surprise figures. Asked for the options to address these figures at a later date. MADER: Again qualified his figures and points. SCHENCK: Commented that the Mayor brings up many interesting points that need staff clarification. Expressed concern at misleading the public into believing that the Council can lop off 5% from the general budget and that that would equate to a 5% cut in individual property taxes. MADER, SCHENCK and TESCHNER discuss the dollar figure cuts and the actual effect to the property owner of a 5% Budget cut. On the average home, a decrease of about $5 per month would be realized based on the analysis of Teschner. VOTE: AYES BY KEDROWSKI, PETERSEN, WUELLNER AND SCHENCK. NAY BY MADER. THE MOTION CARRIED. B. Consider Approval of Purchase of Emergency Vehicle Preemption Devices for Major Intersections in Prior Lake. Manager BOYLES introduced the item in connection with the staff report and provided Council a brief history. BOYLES: Reminded the Council that its options are to authorize all or none of the following: (1) Buy the equipment so that the City can realize the 24%-40% discount; (2) Request MNDOT reimbursement; (3) Prepare plans/specs at six high-volume intersections. If uncomfortable with adopting all three at this time, the Council could pass just Resolutions (1) and (2), which would allow the City to take advantage of the equipment discount and the state financial participation. MOTION BY: KEDROWSKI, SECOND BY SCHENCK TO APPROVE ALL THREE RESOLUTIONS FOR PURCHASE OF EMERGENCY VEHICLE PREEMPTION DEVICES FOR MAJOR INTERSECTIONS IN PRIOR LAKE. Staff provided clarification that funding would come out of 1998 contingency fund if the Council acted on it today. WUELLNER: Asked that if we have to do it anyway in the future, why we shouldn't we also buy the equipment for all and realize the 20-40% savings? BOYLES: Advised that future lighted intersections would be purchased incrementally. FIRE CHIEF CHROMY: Provided further clarification that the discounts apply only on the first five EVPs. MOTION BY: KEDROWSKI, SECOND BY WUELLNER TO APPROVE RESOLUTION 98-XX REQUESTING FUNDING FROM MNDOT THROUGH THE MUNICIPAL AGREEMENT PROGRAM FOR THE INSTALLATION OF EMERGENCY VEHICLE PREEMPTION SYSTEMS AT INTERSECTIONS ON TH 13. 12 12219B.DOC .. "". -. .... Council Meeting Minutes December 21, 1998 MOTION BY: KEDROWSKI, SECOND BY MADER TO AUTHORIZE WSB & ASSOCIATES, INC. TO PREPARE PLANS AND SPECIFICATIONS FOR THE INSTALLATION OF EVP SYSTEMS AT SIX HIGH VOLUME INTERSECTIONS. CHROMY addressed safety issues involved in police, fire and rescue services. Particularly TH13 and 21. SCHENCK: Questions WSB charges and installation costs. CHUCK RIECHTER (FROM WSB ASSOCIATES): Offered that State and County regulations require plans and specs for each intersection (or their intersection specifically) in order to get State approval. Provided further clarification as to installation timeline. PETERSEN: Questioned 700 series versus 400 series advantages. RIECHTER: Advised that the 700 series offers additional options that the City probably doesn't need at this time. VOTE ON ALL THREE RESOLUTIONS, AYES BY MADER, KEDROWSKI, PETERSEN, WUELLNER AND SCHENCK. THE MOTION CARRIED. MOTION BY: KEDROWSKI, SECOND BY WUELLNER TO DEFER ITEMS 9C (CONSIDER APPROVAL OF LAKE ADVISORY COMMITTEE REPORT RELATING TO LAKE CLOSURE AND ACCESS CLOSURE), 10B (CONSIDER APPROVAL OF 1998 CITY MANAGER PERFORMANCE EVALUATION AND SALARY REVIEW) AND 10C (CONSIDER APPROVAL OF ORDINANCE 98- XX ADOPTING 1998 STATE BUILDING CODE) UNTIL THE JANUARY 4,1999 MEETING. VOTE: AYES BY MADER, KEDROWSKI, PETERSEN, WUELLNER AND SCHENCK. THE MOTION CARRIED. Executive Session The Council adjourned to Executive Session at 11 :50pm to obtain updates on current litigation. The Mayor listed the litigation to be discussed upon adjourning to Executive Session and at the end of the Session. The Regular Council Meeting reconvened at 1 :00 a.m. A motion to adjourn was made, seconded and approved. The meeting adjourned at 1 :05 a.m. City Manager Recording Secretary 12219B.DOC 13