HomeMy WebLinkAboutAgenda & Minutes
7:00 p.m. - FORUM
REGULAR COUNCIL MEETING AGENDA
Date: May 19,1997
1. CALL TO ORDER ............................................................................... 7:30 p.m.
2. PLEDGE OF ALLEGIANCE
3. CONSIDER APPROVAL OF PREVIOUS MEETING MINUTES
A. Emergency Meeting April 30, 1997
B. Regular City Council Meeting May 5, 1997
4. CONSENT AGENDA:
A. Consider Approval of Invoices to be Paid.
B. Consider Approval of Treasurer's Report.
C. Consider Approval of Resolution 97-XX Approving Prior Lake Optimist
Premise Permit Renewal for Lawful Gambling.
D. Consider Approval of Fire Call Report for April.
5. PRESENTATIONS:
A. None.
6. PUBLIC HEARINGS:
A. Public Hearing - Continuation of Board of Review.
B. Public Hearing to Consider Approval of Ordinance 97-XX Approving the
Annexation of 230 Acres located in the North 1/2 of Section 12, Spring
Lake Township.
C. Pubic Hearing to Consider Approval of Ordinance 97-XX Approving the
Annexation of 31.25 Acres located in the NE 1/4 of Section 12, Spring
Lake Township.
7. OLD BUSINESS:
A. Consider Approval of Abbreviated Developers Agreement with
Frauenshuh for Park Nicollet Clinic.
16200 E~~&;;reek Ave. S.E.. Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
.A.N EQL'AL OPPORTL'NITY E"lPLOYER
8. NEW BUSINESS:
A. Consider Approval of Adoption of 1998-2002 CIP and Approval of
Resolution 97-XX Authorizing Fund Transfers to Establish Revolving
Equipment Fund.
B. Consider Resolution 97-XX Denying an Appeal by Pinnacle Partners of
the Planning Commission Denial of Variances to the Setback from the
Ordinary High Water Level (OHW), the Setback from the Top of a Bluff,
and Variance to Allow Construction within the Bluff Impact Zone for
Property Located at 15408 Red Oaks Road.) \.
c. Consider Approval of Resolution 97-XX Approving the Final Plat and
Developer's Contract for Windstar Addition. '
9. OTHER BUSINESS:
10. ANNOUNCEMENTS/CORRESPONDENCE
11. ADJOURNMENT
51997 DOC
REGULAR CITY COUNCIL MEETING
DATE: MAY 5. 1997
1. CALL TO ORDER: Mayor Andren called the meeting to order at 7:35 p.m.
Present were: Mayor Andren, Councilmembers Greenfield, Kedrowski, and
Schenck, City Attorney Pace, Attorney Brokl, City Manager Boyles,
Assistant City Manager Tremere, Planning Director Rye, Planner Kansier,
Public Works Director Ilkka, and Recording Secretary Oden.
Councilmember Mader was absent.
2. PLEDGE OF ALLEGIANCE: The Mayor led the Pledge of Allegiance and
welcomed everyone to the meeting.
3. CONSIDER APPROVAL OF PREVIOUS MEETING MINUTES:
MOTION BY KEDROWSKI SECOND BY SCHENCK TO APPROVE THE
MINUTES OF THE APRIL 21, 1997 CITY COUNCIL MEETING.
Upon a vote, ayes by Andren, Kedrowski, and Schenck, abstention
Greenfield, the motion carried.
4. CONSENT AGENDA:
a) Consider Approval of Invoices to be Paid.
b) Consider Approval of a Temporary 3.2 Liquor License for the
Prior Lake Jays / Mudcats for the 1997 Baseball Season.
c) Consider Approval of Massage Therapy License for Rochelle
Seewald.
d) Consider Approval Resolution 97-39 Authorizing Renewal of Two
Electric Service Agreements For Peak Controlled Tiered Services,
Northern States Power Company.
e) Consider Approval of Resolution 97-36 Authorizing the
Preparation of Plans and Specifications for Trails and
Basketball Courts Identified in the 1997 Capital Improvement
Program.
f) Consider Approval of Ordinance 97-13 Amending Chapter 3,
"Public Water," Section 9-3-4 (D) Regarding High Water Slow No
Wake
MOTION BY KEDROWSKI SECOND BY GREENFIELD TO
APPROVE THE CONSENT AGENDA, ITEMS 4A THROUGH 4F.
16200 E(!g!~~m~ls~~dRDiffip1Nl;;l'lk~lIMi1!l~MlN5P-E~1714 / Ph. (612) 447-4230 / Fax (612) 44f-4245
AN EQl.!AL OPPORTLNIlY EMPLOYER
Upon a vote, ayes by Andren, Greenfield, Kedrowski, and Schenck, the
motion carried. .
5. PRESENTATIONS:
a) Annual Report from the Prior Lake/ Spring Lake Watershed
District from President Dave Moran.
. Dave Moran said nine people were willing to sign up for restoration. This
will be the main focus through the end of this year. He thanked the Council
for inviting the Watershed's participation and also the Council and Lani
Leichty for straightening out the milfoil issue. The biggest Watershed issue
in the past eighteen months was the Jeffers easement, which had been going
on for thirteen years. This was finally wound up in 1996. There are now
easements over 82 acres of the Jeffers property in which to pond water. This
should make a big difference in their ability to dispense water out of Prior
Lake without flooding everyone downstream. There is also one additional
ten acre restoration that belongs to Senator Robling that was concluded
earlier this year.
. The Watershed would like to encourage more wetland restoration. If the
Council could help the Watershed with that, they would appreciate it. He
said the funding from Met Council, from Minnesota River Clean-up, and
Board of Water and Soil resources, along with grants could probably handle
anyone or all of the wetlands identified in the inventory.
. The Watershed's big project this year was the conclusion of county ditch 13.
They have the easements concluded now with treeland owners over five
different easements that involve 35 acres south of Spring Lake. In addition,
there is a one acre easement for a ferric chloride building, another one acre
easement for access road to get to and from the ferric chloride building. The
biologists said they should be able to reduce phosphorus entering Spring
Lake by about 50%. In addition, they should be able to settle out the
majority of over two tons of sediment that enter Spring Lake every year. The
overall project is going to make a great improvement in Prior Lake/Spring
Lake. The Watershed has spent around $200,000 on that particular project.
The total expenses in the last year are close to $1/2 million.
. Mr. Moran said they also expanded the no-till drill project out of the District.
He said they had a no-till drill that was made available to all of the farmers
in the district. They allowed the soil and water district conservation people
to lease to those who are willing to use it in the Governor's plan on behalf of
the Watershed. They replaced culverts along the outlet channel during the
year. In the 509 plan, they began discussing the outlet pipe that leaves Prior
Lake and flows into Jeffers Pond that was installed in 1984. Last year, the
C :\MSOFFICE\ WINWORD\COUNCIL\MINUTES\MIN5597. DOC
2
Watershed ran a camera through the outlet pipe. There is a hairline crack in
one spot where the two concrete pipes do not abut quite properly, but it is
nothing serious.
. The theme of 509 plan is what is district going to look like 20 years from
now. Both upper and lower Prior Lake hired an engineering firm or survey
company to survey all of the homes that are below 909. That survey is
complete, and the data is coming together. Now they need to determine value
of the property. That may be important, because somewhere along the line,
they will have to deal with a whole lot more water and volume. It is
important to know value of homes that are endangered. Somewhere along
the line will have to come up with some money. The Watershed also has two
aqua-scaping sites as an experiment. The MPCA bears much of the expense.
The biggest problem is finding lakeshore. They need a gentle slope on the
beach; many homes were precipices or steep beaches.
. Finally this year, the Watershed has begun water quality monitoring.
Water-quality samples are completed twice per month. It is likely that some
of the areas north of CSAH 42 will do the same. All of this means there will
be a lot more people trying to use this channel used exclusively by us. The
answer is that it was made to handle overflow from Prior Lake. Staff is
participating in discussion with Watershed. So far it has been a cooperative
arrangement.
. Councilmember Kedrowski asked once it gets to the edge of the City's water
district, who assumes the cost?
. Mr. Moran said the Watershed still has the responsibility from TH 13 to
Minnesota River, as part of Joint Powers agreement with Shakopee. The
facilities will need to be expanded as there is more use.
. Councilmember Kedrowski asked if the other half is going to contribute.
. Councilmember Schenck asked whether Spring Lake Township was going to
participate in this. He said Prior Lake should not be responsible for the
entire thing.
. Mr. Moran said the whole district would participate.
6. PUBLIC HEARINGS:
a) Annual Board of Review Hearing - County Assessor Leroy
Arnoldi.
. Item 6a was moved to after item 6b to comply with the public posting.
c: \MSOFFICE\ WINWORD\COUNClL',MINUTES\\HNS597, DOC
3
b) Request for Land Division and Variance for Gilbert and Joann
Anderson on Property Located at 16126 and 16122 Lakeside
Avenue.
. Mayor Andren called the public hearing to order for item 6B at 7:55 p.m.
. City Manager Boyles introduced the item. He said the variance involves a
width variance of 3.48 feet from the 75 foot variance required from the
required 75 foot ordinary high water mark. This is a result of three lots to
become two lots. They meet the requirements except for the 3.48 feet lot
width.
. Mayor Andren asked for clarification on how many lots combined.
. Planning Coordinator Kansier said approximately 2 1/2 becoming one. She
said it was originally platted in 1921, with very narrow lots. She said in the
past, lots were reconfigured so everyone ended up with 1 1/2 lots. In this
case, they have two separate lots they wish to combine into one larger lot.
They would take down the existing home on one of the lots. The only
variance they are requesting is the combined lot width at the 904 mark. They
are 3 1/2 feet short. They could have two dwelling sites.
. Tim Moynahan said he was an attorney for the Andersons. The confusion
was the lots combined into two. It is actually two separate buildable lots.
. Councilmember Greenfield asked if there would be proper documentation for
future purposes. If an action that is consistent with policy, but still creates a
situation where we are giving variance to our ordinances must be explained,
there should be a record. Intent of Council must be clear for future purposes.
. City Attorney Pace said the staff report does go through the variance
criteria, and in this case, addresses each criterion, recommending that it
does meet the criteria.
MOTION BY SCHENCK SECOND BY KEDROWSKI TO APPROVE
RESOLUTION 97-34 APPROVING ADMINISTRATIVE LAND DIVISION
WITH VARIANCE REQUEST FOR GILBERT AND JOANN ANDERSON
ON PROPERTY LOCATED AT 16126 AND 16122 LAKESIDE AVENUE.
Upon a vote, ayes by Andren, Greenfield, Kedrowski, Schenck, the motion
carried.
MOTION BY SCHENCK SECOND BY KEDROWSKI APPROVING
RESOLUTION 97-33 A RESOLUTION GRANTING 3.84 VARIANCE TO
PERMIT 71.52 LOT WIDTH AT THE ORDINARY HIGH WATER LEVEL.
C :\MSOFFICE\WINWORD\COUNCIL\MINUTES\MIN5597. DOC
4
Upon a vote, ayes by Andren, Greenfield, Kedrowski, and Schenck, the
motion carried.
MOTION BY SCHENCK SECOND BY GREENFIELD TO ADJOURN THE
PUBLIC HEARING.
Upon a vote, ayes by Andren, Greenfield, Kedrowski, and Schenck, the
motion carried.
6a)Annual Board of Review Public Hearing.
. Mayor Andren called the hearing to order at 8:05 PM. She clarified this was
only to appeal the valuation or ask questions about valuation of the property,
that this was not a truth in taxation hearing.
. City Manager Boyles said the City Council was required by statute to sit as
the Board of Review each year. Residents will have the opportunity to ask
questions or make statements about property valuations. He said the
concerns with property values would be researched. He said a second
meeting would be scheduled for 8:00 p.m. May 19. He said residents can
appeal to the County board of equalization. This is not a hearing having to
do with taxation, it has to do with the valuation of the property. He
introduced Leroy Arnoldi, County Assessor.
. Mr. Arnoldi said this was the first step in the appeal process. The County
Board of Equalization would not hear the concerns of residents unless they
began the appeal process by attending the local Board of Review and provide
an oral or written appeal to their valuation. That is the reason for the sign-
In.
. Leroy Arnoldi introduced Mel Ismer, a property appraiser with the County
Assessor's.
. Dean Coddington of 3301 Sycamore Trail said he purchased a home in
Willows for $135,000 that went up %10, %10, and 5% each of the last three
years. He said his home was on the lake. He said he was treated unfairly by
comparison. He said his home should be lower in value.
. Mr. Arnoldi asked what his estimated market value on the notice was.
. Mr. Coddington said the estimated market value was $169,900, with a
taxable market value $164,000.
. Mr. Arnoldi asked what Mr. Coddington paid for the property.
C;\MSOFFICE\WINWOR D\COL!NCIL\MINVTES\MIN5597. DOC
5
. Mr. Coddington said he paid $190,000.
. Mr. Arnoldi said in comparison to lake shore properties, the others are of
lesser value.
. Mr. Coddington said he knows people with lower taxable market value than
his home that have nicer homes on the lake. He said the County was
penalizing him for buying a home and moving into the community.
. Mr. Arnoldi said there is no penalizing of people for moving in, this is for
keeping median sales value. There are properties where people have been
there many years that also experienced increases in market value. Mr.
Arnoldi said Mr. Ismer would come out to review the property, at which time
Mr. Coddington could show Mr. Ismer the properties which he felt exceeded
his in value and had lower taxable values.
. Mr. Coddington said there was a limit to how much estimated value could be
increased.
. Mr. Arnoldi said there was no limit to how much estimated market value
could increase. He said taxable value could increase 10% of previous year's
value, or 1/3 of difference between new estimated and previous taxable.
Estimated market value should reflect market value.
. He said he has a very high estimated market value, and other people are not
getting theirs raised up.
. Mr. Arnoldi said if the typical assessment ratio in Prior Lake is 93%, and Mr.
Coddington paid $190,000 for a house which is assessed at $169,900, he is
not being treated unfairly.
. Mr. Coddington said there are other homes which are worth the same
amount as his, but because they purchased the home ten years ago with a
much lower sales price. He said tax value of homes is way up and value of
homes have not gone up.
. Mr. Arnoldi said the ratio has to be 90-105%. If this is not done, the state
will do an across the board increase to bring it up. He said all homes were
appraised, over 5000 of them. He said Mr. Coddington should figure out what
direction he was going. He paid $190,000 and was assessed at $169,900. It
falls within the window of 90-105%. This is a statutory process. The
estimated market value is to spell out the market.
c: IMSOFFlCEI WINWORDICOUNCIL \ MINUTESIMIN5597 .DOC
6
. Mr. Coddington He said he was not happy with the answers. He said
$135,000 was the appraisal in 1985, and $171,000 is what it will be in 1998.
. Mr. Arnoldi said they would review it.
. AI Woodward of 3100 Lyles Ridge Court, part of Sterling North townhome
project at the Wilds. He said that is very high priced property, but highly
distressed. He said their project was under foreclosure. The developer is in
default. There has not been any sales of townhomes in the area for well over
a year, not withstanding efforts by Burnet Realty and David Carlson
Companies.
. Mr. Woodward bought home in 1995, feels he is stuck with an albatross.
Says this needs serious review by the Board. He said his estimated market
value is $361,700, which is also taxable market value. That represents more
than 97% of purchase price of home two years ago. He said it is his estimate
that there is not a townhome in the development that would sell at over
$200,000 - $225,000 today. This property is severely overvalued and needs
drastic attention by the Board. The values are depressed and will continue to
be depressed, and the taxpayers should not suffer Taxing authorities need to
recognize that the values have declined. The property will not carry the kind
of assessed values that are on the project.
. Mr. Arnoldi said there has been quite a bit of conversation with Wilds
property owners. He said one of the toughest assignments is to appraise
both the first house and the most expensive house in a project. He said the
cost approach to value could be used. One wonders if market approach will
support cost approach. He said they are going to look at Wilds before the
next Council meeting. The assumption is that there is going to be a drastic
fire sale in the Wilds.
. Mr. Woodward said there have been recent sales, which indicate that the
property values have declined significantly.
. Mr. Arnoldi said there has been new construction, so people are not avoiding
it. It may not have the anticipated appreciation that was hoped for, but it
deserves to be looked at. He said they will look at the Wilds in its entirety.
. Mr. Woodward said they should look at townhomes in particular because,
developer is being foreclosed, the units are not selling.
. Mr. Arnoldi asked why are they not selling?
. Mr. Woodward said there is no marketing effort and no one can buy them
because there is no developer to deal with the homeowner's association and
c: \!vISOFFICE\ WINWORD\COUNCII;MINUTES\;-"UN5597. DOC
7
deal with the defaults that have accrued which make it impossible to sell the
units.
. Jim O'Brien of 3124 Wilds Ridge Court said homes will sell as prices go
down. He read a letter received a year ago from Mr. Arnoldi. He said his
valuation has gone up $6000 this year. He said his valuation was not
reduced at all as was stated in the letter.
. Mr. Arnoldi said the value he is paying on is under what the purchase price
IS.
. Mr. O'Brien said he paid too much for the home. He said it is comparable to
95' sale for $455,000 which sold in '96 for $400,000.
. Mr. Arnoldi asked if that was an owner transfer.
. Mr. O'Brien said most of the people have been transferred.
. Mr. O'Brien said 2800 Fox Wood Road was on the market for $449,000 and
sold for $370,000 . He said reasonable valuation would be 30% less than
what they are now. He said what they were asking for was a review of the
area. He was surprised to see the increase.
. Jim Stanton, 2973 Fox Hollow. He said they have decreased the value of the
lots significantly compared to what Mr. Burtness was asking, $50-60,000,
which will reflect automatically. He said to address Mr. O'Brien's statement,
the developer who bought Sterling North and Sterling South crash landed a
year ago. He said if they put 8 or nine on the market, it won't enhance the
values. He said they would maintain the level and compatibility of the
neighborhood. He said they had a $300,000 price point over the top of the
hill, and they are starting to sell. He said it would eventually bounce back.
He said presently it is depressed, but it will be a couple of years before it gets
back.
. Mr. Arnoldi said he would set up a meeting with Mr. Stanton.
. Kregg Hanson said they also live at the Wilds, at 3146 Wilds Ridge Court,
Parcel identification number R25303010. He said he had no complaint with
the assessor's office, and they were the very first property owners at Sterling
North. He said he was worried about how he would sell the property and at
what price. He said the estimated market and taxable market value were at
$371,400. They paid more than that for it.
C: \MSOFflCE\ WINWORD\COUNCIL;,MINUTES\MIN5597. DOC
8
. Cyndi Detjen, at 3469 Sycamore Trail, feel that $175,100 market value is
over what it should be. She said she did not have estimated market values.
She said taxes are related to the market value.
. Sheri Elander, 2807 Wilds Lane Sterling South development, 1-1/2 years.
She said the concern was there was a lot of space and did not know what
would go in there. She said there association has not met any obligations to
them. She said the next door lot was filled with pigeons and racoons. She
said $236,200 was the estimated market value, and they bought the house
for $232,000.
. Wayne Bongard of 2956 Fox Hollow. said he owned single family home, and
he was concerned about a home in next circle that sold for $515,000 and was
reduced to $397,500. He said besides the obvious erosion in market value,
some of the conversation about what was going on with Mystic Lake Casino
as far as the maintenance of County Road 83 and discussion of toll booths
was compounding the problem.
. Mark Kassebaum of 4255 Greenwood Circle NE said he had been trying to
sell the house. He said he went and checked appraised market values. All
houses he looked at were market value of more than his. He said the houses
he looked at were $50-200,000 more. He said he met with Mel to discuss the
reason for this. He said the answer that he got was a run-around. He wants
his house to be in line with the others in the neighborhood. He said lake
properties should be assessed alike.
. Mr. Arnoldi said the properties would need to be reviewed.
. Mr. Kassebaum said he felt the houses were worth more, but he was paying
more taxes. He said he was paying 35% more taxes than others when there
houses are valued at 25% less than his.
. Mr. Arnoldi said he would review the properties that Mr. Kassbaum had
furnished.
. Nancy Novak 3084 Wilds Ridge Court at Sterling North at the Wilds wanted
to be evaluated with others.
. Dale Westin of 7610 Prior Lake Circle said his estimated market value was
$123,100, taxable market value $123,100, and was $110,000 4-5 years ago. It
has been increased 5% per year since he got there.
. Mr. Arnoldi said contact the City. He said the property was appraised at
market value, there is concern about market value issue, and not showing
C: \MSOFFICE\WINWORD\COUNCIU MINUTES\MINS597, DOC
9
anticipated appreciation that was hoped for. He said people can't buy
property today for same price that they could years ago.
. He said he'd like to confirm that this town is way too high in taxes.
. Jacquin Bohlig 2831 Wilds Lane concurred with other Wilds residents, and
wanted to be on the record.
. Doug Cooper of 3810 154th Street NW said he had a $6,000 increase for new
improvements, and all he did was put a shed back up that went down. His
total valuation changed $8,500.
. Mr. Arnoldi said even if he replaced something, they can look at the
difference.
. Lorraine Borka 14384 Rutgers Street, every year taxes go up, there is no new
construction in the area, and every year her taxes go up, and she feels this is
an injustice, and by increasing the value it is putting her out of her home.
. Mr. Arnoldi said lake shore property has historically been increasing in value.
He said her home will be reviewed. The legislator will have to look at what
sort of tax rate she will pay, but that is another issue.
MOTION BY ANDREN SECOND BY KEDROWSKI TO CONTINUE THE
PUBLIC HEARING UNTIL MAY 19TH.
Upon a vote, ayes by Andren, Greenfield, Kedrowski, and Schenck, the
motion carried.
7. OLD BUSINESS:
a) Consider Amending the Zoning Ordinance to Allow Structure Setback
from the Ordinary High Water Level within the Shoreland District
from 75 feet to 50 feet.
. City Manager Boyles introduced the item. He said the ordinance is attached
to the agenda report.
MOTION BY KEDROWSKI SECOND BY SCHENCK TO ADOPT
ORDINANCE 97-12 AMENDING SECTION 5-8-3 OF PRIOR LAKE CITY
CODE AMENDING SECTION 9.3 OF THE PRIOR LAKE ZONING
ORDINANCE 83-6.
Upon a vote, ayes by Andren, Greenfield, Kedrowski, and Schenck, the
motion carried.
C: \MSOFFICE\ WINWORD\COUNCIL\MINUTES\",UNS597 ,DOC
10
8. NEW BUSINESS:
a) Consider Approval of Abbreviated Developers Agreement with
Frauenshuh for Park Nicollet Clinic Project.
. City Manager Boyles introduced item 8A of the May 5, 1997 City Council
meeting. He said this property could be developed with a building permit. It
is to the mutual benefit of the City and developer that a short form
developer's agreement be used. He said one issue is that of soil
contamination on this site, adjacent to property at EZ stop. He said the
tanks were not installed in 1993. The city has confirmation from an
environmental and engineering servicethat installation of two tanks was in
1986. The date of installation for the other two tanks is unknown. The
question is the degree to which City could become responsible for cleaning
the soil. He said that the present developers agreement does not have an
indemnity agreement or a letter that would suggest that the City would be
indemnified. He said that is the only issue holding up a staff
recommendation for approval.
. Mayor Andren asked if the developer would like to speak to the issue.
. Dean Williamson with Frauenshuh said that attorneys have been working to
bring the matter forward. He said their attorney was working with MPCA.
Mark Mason with environmental consulting is working with the attorney on
the soil issue.
. Mark Mason with Service Environmental Engineering asked what questions
the Council had.
. Mayor Andren said she wanted to know, since the contract did not call for
indemnification, how the public was going to be protected.
. City Attorney Pace said that there was not enough information. She said
Frauenshuh was correct in that the City is working with their attorneys
negotiating language for the short form developer agreement that will be
acceptable to both parties. It is a risk analysis issue. The contamination is
emanating from EZ Stop. It has contaminated a portion of the property
which will be dedicated to the City as a road. When the utilities and the
road is built, the contamination will be cleaned up. If the City would have to
go in once it is dedicated to the City, and it is recontaminated because it has
not been properly cleaned up, then under the proposal, the City will be
responsible. The City had said if they knew enough about the cleanup that
they could say it was a remote risk, they would present it to the Council. If
they had that comfort level, they would move forward without an
indemnification. They do not have enough information about EZ stop to do
c: \MSOFFICE\ WINWORD\COUNCIL\ MINUTES\MIN5597 .DOC
11
so. In the groundwater, 2000 gallons of gasoline has been collected. She said
those were risk factors and they were not prepared to recommend to Council.
If the City were indemnified, and soil had been recontaminated, and Health
Systems Minnesota Park Nicollet would be responsible, that is a different
risk.
. City Engineer Ilkka said the information they were looking for was when the
tanks were installed. He asked Mr. Mason to check to have EZ Stop see if
tanks were in compliance. Asphalt-coated steel tanks will never be
adequate. City Engineer Ilkka said the City should pursue indemnification.
. City Attorney Pace said they want something from PCA that says the
mitigation of contamination on EZ stop site is appropriate and being done.
The letter from PCA to Health Systems does not indemnify the City or
provide solid evidence that there is no risk of recontamination.
. Mr. Mason said his response was that EZ Stop is now in compliance with all
state and federal requirements, and for 1998, they will be in compliance also,
whether by retrofitting or new tanks.
. City Attorney Pace said the language initially proposed by Health Systems
that any amount not reimbursed to Health Systems from the petrofund, for
cleanup on site would be paid by the City. The City could put in the same
language in the reverse.
. Mr. Mason said from a technical standpoint, the road is up-stream or
upgradient from where the tanks are. The contamination was from a
significant release from the tanks when there was no monitoring, probably
before EZ Stop owned the property. Since then there has been monitoring
that would not allow for that type of the release.
. Councilmember Greenfield said if the risk is remote, then it is not really a
risk for them to indemnify the City.
. Mr. Mason said he would defer that to his attorney, he is a hydrogeologist.
He said Minnesota Statute 115 C says if Health Systems is not the owner or
operator of a tank, they are not responsible for contamination associated
with it.
. City Attorney Pace said but if they need to disturb the soil, they have to treat
it. She said the issue is only that of recontamination. The City Engineer, City
Attorney, and City Manager believe that it is their responsibility to disclose
the risk for the Council and let them weigh it.
c: \MSOFFICE\WINWORD\CO UNCIL'MINIJTES\MINS597. DOC
12
. Councilmember Schenck asked about EZ Stop's responsibility. If they are the
pollutant, why is_anyone else responsible?
. Mr. Mason said the EZ Stop has been very cooperative, and they recognize
they are the responsible party.
. Councilmember Schenck said don't they have a responsibility and why
should it be borne by the citizens of Prior Lake when it is a business-
produced pollutant?
. Mayor Andren said it is a piece of ground owned by someone else which has
been contaminated. They will clean up the contamination. Then they will
dedicate the street and turn it over to the City. Since we know it was
contaminated, it could happen again. As a condition of dedication, the City
should be indemnified.
. Councilmember Greenfield said he is uncomfortable for the Citizens if we are
aware of pollution, and has further concerns for the community from that
site. He said they should get state agencies involved to make sure that this
leak does not harm the residents.
. City Manager Boyles suggested a deferral until May 19th.
. Councilmember Kedrowski said there were Citizens who wanted to be heard
tonight.
. Dave Velishek said Velishek Auto, that his concern was the frontage road
being closed on May 16th without contacting any of that landowners. He said
the road has been in existence since 1964. The City has maintained the road.
He said back when the property was annexed, it states it is subject to an
easement of 30 feet. He read the easement. He said the issue was since the
road has been driven on for thirty years, the Council should consider waiting
until a ring road was built.
. Councilmember Kedrowski said the question was is the City abandoning its
roadway easement?
. City Attorney Pace said Park Nicollet is doing a title proceeding and the City
is involved because of a utility easement. The City was never party to any
street or roadway easement.
. Mr. Velishek said why did the City maintain road?
. City Attorney Pace said they have ordered additional materials for title-work
to look at it more thoroughly.
C: \MSOFFICE\ WINWORD\COUNCIL\MINUTES\MIN5597 .DOC
13
. Councilmember Schenck said what happens on May 16th?
. Ray Lemley, owner of Hollywood Bar and Grill, said no phone calls and no
one addressed him. He said it was not very friendly. He said the ring road
was not to be completed until future development, which is ambiguous. He
said on his lease, it was an easement since 1970, and the road would be used
to access the businesses. All the traffic will have to go up to Duluth, and will
that intersection handle all that traffic? As a business owner, he would
appreciate consideration for not closing the road.
. Mayor Andren said so there are two issues, the road closing and the
environmental issue.
. Councilmember Greenfield said the issues should be investigated before any
action is taken.
. Mayor Andren said if the road is private property, the Council can not tell
them what to do with it.
. Councilmember Kedrowski said it merits some discussion on the ring road.
The City has some obligation to the business owners that are there already.
Consideration may be for the Council to have an analysis done to see
whether the ring road is financially feasible. That should be considered as an
alternative.
. Mayor Andren said they talked about the ring road about six years ago when
they were just initiating the business office park. At the time when there
was going to potentially be a new anchor and mall redevelopment. It was
always discussed that TIF was to be used. They made it a soil corrections
area. They corrected some of the soil, they were going to do more, but the
deal fell through, they did not have the funds or the legal tools to do it. If
there is going to be a ring road, she doesn't know where anyone is going to
get the funds unless there happens to be some redevelopment on that site, or.-
tax increment money going in to build ring road. The City was not going to
arbitrarily spend four million dollars to put a ring road in. That is how the
ring road theory got started, by at least one major redevelopment proposal
and several smaller ones. Funds were going to be generated from TIF and
from soil corrections. So, we never were going to go in and arbitrarily put in a
ring road for a mall which was going out of business.
. City Attorney Pace said one significant factor was the staff report pointed
out that Park Nicollet can develop the parcel without any changes. It is in
both parties best interests to enter into this preliminary developers
agreement.
c: \,\1S0FFICE\WINWORD\COUNCIL',MINUTES\;-.UN5597. DOC
14
. Mayor Andren said this is the second time that there is a very viable
business coming in, and they have gone through this before. She said the
first time Frauenshuh came in, they were going to redevelop the whole site,
including Prior dale Mall. It fell through. The goal has always been to
redevelop something which desperately needs redevelopment with TIF
money. She said Park Nicollet can come in and pull a building permit and
put up a building. It is their property and if they want to close the road, it is
a private easement. If anything is going to be done with the mall, all parties
will have to work together. She said with something as big as this, it is not
in the best interest of the public for the redevelopment proposals to keep
going down. The Council has tried to get it done. She said it was time the
business owners came together if anyone wants to see anything at the mall.
. Mr. Lemley said they did not come to frustrate the Mayor. He said he came
as a business operator concerned about a road being blocked off. He said he
did not like how it was handled, that a sign went on a telephone pole that a
road was being blocked off. He said if he wasn't here before the Council, it
would show he did not care.
. Mayor Andren said it wasn't just a single business owner.
MOTION KEDROWSKI SECOND BY SCHENCK TABLE
CONSIDERATION OF THE SHORT FORM DEVELOPER'S AGREEMENT
TO MAY 19TH TO ADDRESS THE ENVIRONMENTAL AND TITLE ISSUE
CONCERNS.
Upon a vote, ayes by Andren, Greenfield, Kedrowski, and Schenck, the
motion carried.
b) Consider Approval of Resolution 97-35 Approving the Final Plat for
Cardinal Ridge 5th Addition.
MOTION KEDROWSKI SECOND ANDREN TO APPROVE RESOLUTION
97-35 APPROVING THE FINAL PLAT FOR CARDINAL RIDGE FIFTH
ADDITION.
Upon a vote, ayes by Andren, Greenfield, Kedrowski, and Schenck, the
motion carried.
c) Consider Approval of Resolution 97-37 Ratifying a 1997-1999
Collective Bargaining Agreement between the City of Prior Lake and
Teamsters Representing Police Sergeants.
c: \MSOFFICE\ WINWORD\COUNCIL\MINt'TES\MIN5597. DOC
15
MOTION BY KEDROWSKI SECOND BY SCHENCK TO APPROVE
RESOLUTION 97-37 RATIFYING A 1997-1999 COLLECTIVE
BARGAINING AGREEMENT BETWEEN THE CITY OF PRIOR LAKE
AND TEAMSTERS REPRESENTING SERGEANTS.
Upon a vote, ayes by Andren, Greenfield, Kedrowski, and Schenck, the
motion carried.
d) Consider Approval of Resolution 97-38 Adopting Revisions to City
Council Bylaws Regarding Public Hearings and Consent Agenda.
. Mayor Andren said one of the things they had discussion over was the
Consent Agenda Items. She said on the second page, item E, it should clarify
what they are and why they should be on the consent agenda. The question
was on adoption of ordinances and resolutions previously considered by the
City council, what is meant by previously considered?
. City Attorney Pace said for example when an ordinance was considered and
the Council liked in concept, but during the discussion, the Council wanted
changes made, then staff would go back and make those changes to
accurately reflect the direction provided by the Council, it could be put on
Consent. This would be previously addressed and where staff has been
directed.
. Mayor Andren clarified that when it lists auditor report, what reports did it
mean?
. City Attorney Pace said quarterly budget report.
. Mayor Andren said that they had to make it clear, and she was assuming
that taking the quarterly report for instance, it was a fact that could not be
changed, a monitored financial state. It was not a policy question, it cannot
be changed, it is simply information. It is information based on the budget
the Council approved. She said it was a simple report that could not be
changed. She said she heard it said that there should not be anything of a
budgetary nature on there.
. Councilmember Greenfield said he thought the Councilmembers at the
meeting had a plain understanding of the Consent Agenda.
. Mayor Andren said these were not policy questions. What is done with that
report was it was to be utilized at the budgetary hearing. It is informational.
She said that it should be cleared up so there is no misunderstanding.
C:\MSOfFICE\ WINWORD\COCNCH, ,\-1INTJTES\MINSS97 , DOC
16
. City Manager Boyles said if the Council wishes to be very specific, they could
include investment report, quarterly budget report, treasurer's report,
building inspection report, under non-controversial items.
. Mayor Andren said that should be defined. She questioned the item "approve
unanimous recommendation of advisory committees".
. City Attorney Pace said the unanimous recommendations of the advisory
committees could be accepted on Consent Agenda if it was deemed non-
controversial.
. Mayor Andren said she did not feel exactly comfortable with that.
. Councilmember Greenfield said one example of a potential concern was
election items. So maybe it needs to be further defined.
. City Attorney Pace said to define what may be included, it would be items
which occur with regularity, and are not controversial. It is a judgment call.
. City Manager Boyles gave the example of awards of bid.
. Mayor Andren said there were some things the City Manager will use
judgment on.
. City Attorney Pace said maybe in the case of irregularity in responding to
the bid, the Council has discretion of waiving minor irregularity, and City
Manager would have to exercise his judgment in putting it on the Consent
agenda or not.
MOTION KEDROWSKI SECOND GREENFIELD TO ADOPT REVISIONS
TO CITY COUNCIL BYLAWS AS AMENDED BY: DELETING LANGUAGE
THAT SAYS THAT PUBLIC HEARINGS WILL NOT BE RECONDUCTED,
ADDING LANGUAGE THAT ALLOWS COUNCIL TO RECONDUCT
PUBLIC HEARINGS OR RECEIVE ADDITIONAL INFORMATION IF NEW
DATA BECOMES AVAILABLE, AND THE CONSENT AGENDA
REFINEMENTS AS DIRECTED BY THE CITY COUNCIL.
Upon a vote, ayes by Andren, Greenfield, Kedrowski, and Schenck, the
motion carried.
MOTION KEDROWSKI SECOND BY GREENFIELD TO APPROVE
REPORT FROM SUBCOMMITTEE ON CITY MANAGER PERFORMANCE
EVALUATION.
c: \MSOFFICE\WINWORD\COUNCIL\\lINUTES\TvlIN5597. DOC
17
Upon a vote, ayes by Andren, Greenfield, Kedrowski, and Schenck, the
motion carried.
9. OTHER BUSINESS:
MOTION ANDREN SECOND KEDROWSKI TO ELIMINATE STREET
COLLECTOR FEES ON ALL BUILDING PERMITS EFFECTIVE WITH
PROVISO THAT CITY DOES NOT PRECLUDE COLLECTING FEES IN
FUTURE.
Upon a vote, ayes by Andren, Greenfield, Kedrowski, and Schenck, the
motion carried.
. Councilmember Kedrowski said they were talking about Parks looking at
Wetlands. Perhaps the Watershed should look at those Wetlands.
MOTION GREENFIELD SECOND KEDROWSKI TO DIRECT STAFF TO
CONTACT WATERSHED REGARDING WETLANDS TO DETERMINE IF
THEY WISH TO ASSUME RESPONSIBILITY FOR THEM.
Upon a vote, ayes by Andren, Greenfield, Kedrowski, and Schenck, the
motion carried.
. Councilmember Kedrowski asked if the City was doing anything with a used
car lot ordinance.
. Planning Director Rye said the new zoning ordinance has a section dealing
with used car lots.
. Councilmember Kedrowski said two used car lot owners approached him
with their concerns about the ordinance.
. Planning Director Rye said those businesses would not be required to sell.
He could make a draft of the ordinance available.
. Councilmember Schenck asked what is going on behind Video Update?
. Planning Director Rye said that was an ordinance violation.
. Councilmember Kedrowski said levy limits are coming back. It would be
prudent for City Council should go on record saying that that is not
supported. We should put it in writing.
. Mayor Andren said she was not opposed to levy limits.
C: \;'vISOFFICE\ WINWOR DlCOUNCIL\MINlJTES\TvUNS597. DOC
18
. Councilmember Kedrowski said he was not completely opposed either, but
the City should not be told by state how to run the city.
. Councilmember Kedrowski asked about the radio tower.
. City Manager Boyles said the company was proposing to build on federal
land, a 140 foot tower. The City already sent a letter to federal legislators
enlisting their support to preclude tower construction.
. Councilmember Greenfield said what is the response from our elected
officials that the federal government is violating our ordinances and not
being responsive to them?
. City Manager Boyles said they have not yet responded.
. City Attorney Pace said the tower was put up for federal government. It
becomes a different issue when they are putting it up to lease it to
commercial. In that case, the City ordinances are not preempted.
. Councilmember Schenck said the Park Nicollet site and Prior dale Mall is a
critical development area. The condition of Franklin Trail should be
recognized. The City should contact the County Commissioner and ask about
plans for improvement of Franklin Trail.
MOTION BY SCHENCK SECOND BY KEDROWSKI TO DIRECT STAFF
TO CONTACT COUNTY COMMISSIONER TO OBTAIN PLANS FOR
IMPROVEMENT OF FRANKLIN TRAIL.
Upon a vote, ayes by Andren, Greenfield, Kedrowski, and Schenck, the
motion carried.
. Councilmember Greenfield said he had Moody Municipal credit report.
. City Manager Boyles said Moody's found the City to be a conservative
budgeter. He said Moody sees the City's operating surplus as a plus when
they establish our bond rating. Because the City is seen as fiscally
responsible is one reason we receive excellent interest rates for bond sales.
Such rates save taxpayer dollars.
10. ANNOUNCEMENTS/CORRESPONDENCE
11. ADJOURNMENT: The meeting adjourned at 10:30 by general consent.
City Manager
C: \MSOFFICE\ WJNWORD\COUNCII,\\JJN1JTES\\HN5597. DOC
19
;(,Ul~(/~ ()i1e~
Recording Secretary
C: \MSOFFlCE\WINWORD\CO!INClL\\llNUTES\MIN5597. DOC
20
Emergency City Council Meeting Minutes
Date: April 30, 1997
Call to Order: Mayor Andren called the meeting to order at 5:33 p.m. Present
were: Mayor Andren, Councilmembers Greenfield and Schenck.
. Mayor Andren announced that the purpose of the meeting was to approve the
sale of 7.8 million dollars of General Obligation Bonds.
. City Manager Boyles indicated that an Emergency Meeting was necessary to
"catch the market" at just the right time so that the proper savings could be
realized by the City and taxpayers for this 20 year issue. He introduced Steve
Mattson of Juran and Moody.
. Steve Mattson distributed materials to the City Council, including a financial
analysis of the bond issue, a comparison of the interest rates with the Cities of
Montevideo and Fridley who are also in the market during the same period and
an extract of minutes and resolution which would approve a privately negotiated
sale. Mr. Mattson advised that no municipality was selling bonds during the
remainder of the week which was in Prior Lake's favor. He compared the bond
interest rate received by the City to Fridley and Montevideo. Fridley is a AA1
rated community by Moody's, whereas Montevideo chose to insure their rating to
give them AAA status. Prior Lake is an A-I Community. Mr. Mattson
announced that all but $1 million of the bonds have been sold to date subject to
the City Council's approval at this meeting. The average coupon rate for the
sale was 5.696% with an estimated effective rate of 5.805%. Mr. Mattson
explained the change in Moody's rating system. He indicated that the City's
rating is based upon Moody's evaluation of the City's fund balances, budget, debt
loads, and other financial statements.
. Finance Director Teschner indicated that the City has made a concerted effort to
improve its Moody's ratings by establishing fund balances. The City has also
shortened the debt repayment period as well as monitored the amount of
outstanding debt.
. He stated that the City's debt load is relatively modest at $14 million before this
issue. Including this issue, debt load will be approximately $22 million, of which
$2.1 million will come off and $1 million added this year to finance 1997 capital
improvement projects..
. Councilmember Kedrowski joined the meeting at 5:45 p.m.
MOTION BY SCHENCK SECONDED BY GREENFIELD TO APPROVE
RESOLUTION 97- 32 PROVIDING FOR THE ISSUANCE OF $7,800,000
GENERAL OBLIGATION PARK BONDS OF 1997.
16200 E~~...ornAJ(;~(3ES8EAIPr.Mf]iGJnf.)(Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQCAL OPPORTVilTY E:v!PLOYER
"
Upon a vote taken,
motion carried.
ayes by Andren, Greenfield, Kedrowski, and Schenck, the
I
I
rped by General Consent at 5:46 p.m.
The
H:\CMAN AGER\GENERAL \EMERG. DOC