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HomeMy WebLinkAboutAgenda & Minutes 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 REGULAR COUNCIL MEETING AGENDA December 17, 2007 6 p.m. mmmmmmm_9.!~.H~llmm Work Session @ 4:30 p.m. 2008 License Fees 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 and each presenter will have no more than ten (10) minutes to speak. Topics of discussion are restricted to City governmental topics rather than private or political agendas. Topics may be addressed at the Public Forum that are on the agenda except those topics that are part of a public hearing or public information hearing. The City Council will not take formal action on Public Forum presentations. 3. APPROVAL OF AGENDA 4. CONSIDER APPROVAL OF DECEMBER 3,2007, MEETING MINUTES 5. CONSENT AGENDA: Those items on the Council Agenda which are considered routine and non- controversial are included as part of the Consent Agenda. Unless the Mayor, a Council member, or member of the public specifically requests that an item on the Consent Agenda be removed and considered separately, Items on the Consent Agenda are considered under one motion, second and a roll call vote. Any item removed from the Consent Agenda shall be placed on the City Council Agenda as a separate category. A. Consider Approval of Invoices to be Paid. B. Consider Approval of Treasurer's Report. C. Consider Approval of Building Permit Report. D. Consider Approval of Animal Warden Report. E. Consider Approval of Fire Call Report. F. Consider Approval of a Resolution Approving a Joint Powers Agreement and Membership in the Southwest Metro Drug Task Force in 2008. G. Consider Approval of a Resolution Extending the Deadline for Recording the Final Plat and Development Contract for Pike lake Meadows. H. Consider Approval of Body Art License Renewals for Jerome Deleon and Alex Morse. I. Consider Approval of 2008 Cigarette License Renewals. J. Consider Approval of 2008 Renewal Massage Therapy Licenses. K. Consider Approval of a Resolution Approving Prior lake Lions Club Premise Permit for lawful Gambling. L. Consider Approval of a Resolution Extending the Deadline for Recording the Final Plat and Development Contract for latterell E.states, 1 k . www.C1tyoijmorae.com Phone 952.447.9800 / Fax 952.447.4245 M. Consider Approval of a Resolution Authorizing the Expenditure of Construction Project Funds to Complete City Hall Improvements. N. Consider Approval of a Resolution Awarding the City's Standardized Professional Services Agreement for the Itasca Watermain Extension Project. O. Consider Approval of a Resolution Approving Prior Lake Optimist Club Premise Permit for Lawful Gambling. 6. ITEMS REMOVED FROM CONSENT AGENDA 7. PRESENTATIONS A. Lion's Club Donation. B. Consider Approval of a Report Regarding the Status of Speed Limit Postings on CR 21 from CR 42 to CR 87. 8. PUBLIC HEARINGS A. Public Hearing to Consider Approval of a Resolution Ordering the 2008 Improvement Project and Preparation of Plans and Specifications (Brooksville Hills). B. Consider Approval of a Resolution Upholding the Decision of the Planning Commission to Approve Variances from the Zoning Ordinance to Allow for the Redevelopment of a Home in an R1 Zoning District. 9. OLD BUSINESS A. Consider Approval of Resolution Adopting 2008 Prior Lake Budgets and Certifying Final 2008 City of Prior Lake Property Tax Levy to Scott county Department of Taxation. B. Consider Approval of a Resolution Adopting the Assessment Roll for Improvements on Ida Circle and Trunk Highway 13 (City Project #06-11). 10. NEW BUSINESS A. Consider Approval of a Report Regarding City of Prior Lake Plan for Energy Conservation and Environmental Responsibility. B. Consider Approval of a Report Regarding the Parks Facilities and Equipment Replacement Matrix. C. Consider Approval of a Resolution Approving a Joint Powers Agreement for Hazardous Material Incidents and Terrorist Threats by Organizing a Hazardous Materials Response Team. D. Consider Approval of a Resolution Approving Amendment NO.2 to the Development Contract for Stemmer Ridge. E. Consider Approval of a Resolution Ratifying a 2008-2010 Labor Agreement with American Federation of Federal, State and Municipal Employees (AFSCME) Representing Clerical, Technical and Maintenance Employees. F. Consider Approval of an Ordinance Adopting Responsibilities for Hosts of Social Events Involving Minors. 11. OTHER BUSINESS/COUNCILMEMBER REPORTS A. Community Events 12. ADJOURNMENT City Council Meeting Minutes December 3, 2007 DRAFT 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. Topics of discussion are restricted to City governmental topics rather than private or political agendas. Topics on the agenda may be addressed except those topics that are part of a public hearing or public information hearing. The City Council will not take formal action on Public Forum presentations. City Manager Boyles explained the concept of the public forum. Comments: Jarrad Robinson, 16035 Northwood Road NW, advised the Council that he applied for variances which were approved by the Planning Commission, and that an appeal has been received and will be brought before the Council at a future meeting. APPROVAL OF AGENDA Mayor Haugen requested the addition of agenda item 11A, discussion regarding potential social host ordi- nance, and item 11 B questions regarding speed limits on CR 21. MOTION BY MILLAR, SECONDED BY HEDBERG TO APPROVE THE AGENDA AS REVISED. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. APPROVAL OF MEETING MINUTES MOTION BY HEDBERG, SECONDED BY LEMAIR TO APPROVE THE NOVEMBER 7, 2007, MEETING MINUTES AS PRESENTED. VOTE: Ayes by Haugen, Hedberg and LeMair. Councilors Erickson and Millar abstained due to their ab- sence at the meeting. The motion carried. MOTION BY MILLAR, SECONDED BY HEDBERG TO APPROVE THE NOVEMBER 19, 2007, MEETING MINUTES AS PRESENTED. VOTE: Ayes by Haugen, Erickson, Hedberg and Millar. Councilor LeMair abstained due to his absence at the meeting. The motion carried. CONSENT AGENDA City Manager Boyles reviewed the items on the consent agenda. A. Consider Approval of Invoices to be Paid. www.cityofpriorlake.com 1 Phone 952.447.9800 / Fax 952.447.4245 City Council Meeting Minutes December 3, 2007 DRAFT B. Consider Approval of a Resolution Approving Polling Location Changes for Prior Lake Precinct #5 and Precinct #7. C. Consider Approval of Resolution 07-200 Electing the Non Waiver of Statutory Municipal Tort Liability Limits and Declining Excess Liability Insurance Coverage. Councilor Erickson requested that item 5B, Consider Approval of a Resolution Approving Polling Location Changes for Prior Lake Precinct #5 and Precinct #7. 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. Comments: Erickson: Supports the proposed polling location changes and wants to assure that everyone understands the polling locations will be moved. Noted that Fire Station No.2 will be the new location for people who voted at Shepherd of the Lake, and Shepherd of the Lake will be the polling place for people who voted at the Links. Millar: Agreed that citizens in those areas should be aware of where to vote. Teschner: Stated there will be a number of communications to the public to inform them of the changes. Hedberg: Commented that a number of residents at the senior housing campus will now be able to vote right at the place where they live. Teschner: Informed the Council that staff conducted a voter registration day at Shepherd of the Lake as well as an absentee voting day. MOTION BY HEDBERG, SECONDED BY ERICKSON TO approve Consider Approval of Resolution 07- 199 Approving Polling Location Changes for Prior Lake Precinct #5 and Precinct #7. PRESENTATION No presentation was scheduled. PUBLIC HEARING Truth-in-Taxation Public Hearing for Proposed 2008 City Budgets. City Manager Boyles explained that this hearing is exclusive to city taxation; and that school and county hearings for Truth-In-Taxation would be held on different dates at different locations. Noted that this meet- ing is not about valuation, but rather about the 2008 budget. Presented information about the budgeting process and contributing factors to the budget tax levy. Described tax reduction efforts as well as new spending proposed for 2008. Comments: Millar: Asked about internal efforts to be more cost effective. Boyles: Replied that sixty percent of the budget is for personnel and the city considers its staffing carefully to determine if a full-time employee should be employed or consultant services used to complete a project. The consultant approach is often a better value and has allowed the city to keep the staff count low. Com- pared staff count of 85 for Prior Lake to 111 for Savage and 135 for Shakopee. Noted that a five-page document listing cost-saving efforts has been distributed to the Council and it includes information on areas where department heads are saving money and using cost-effective procedures. Hedberg: Asked Boyles to enumerate the trade-offs of professional services and consultants versus staff. 2 City Council Meeting Minutes December 3, 2007 DRAFT Boyles: Identified how that segment of the budget is used and explained that the city uses consultants first; and if the nature of the work becomes repetitive or regular then it is decided whether or not to hire a staff person. Gave examples of consultants and professional services as: auditor, assessors, attor- ney/prosecutor, etc. Erickson: Asked for clarification of the city manager budget. Boyles: Replied that it is the budget for the entire department not just the City Manager as an individual. Erickson: Asked if neighboring cities have franchise fees and whether that affected the ran kings for tax rating comparables. Boyles: Replied that to have a cable television franchise fees is fairly universal for all cities. Explained that Prior Lake has had to purchase easements and that the easement areas had been used by several utilities at no cost to them prior to the franchise fees. Erickson: Commented on the spending proposal for the joint public safety training facility stating that it may evolve into no cost due to opportunities for rental revenue. Noted that the fiber optic plan ties into Scott County and the emergency response plans. Boyles: Affirmed those are both efforts to provide better service as well as save money. Commented that the public relies on emergency response personnel to know what they are doing and we incurred the ex- pense of sending personnel away for training which will now be provided here. Commented that fiber op- tics will allow the city to discontinue use of T1 lines as a cost saving as well as being able to use the fiber optics for future opportunities. Haugen: Asked about the 800 MHz program mandated by the state. Boyles: Replied that our current radio system is about 20 years old, and both the county and state are moving to the 800 MHz system. It is an unfunded mandate, but it will allow all emergency response per- sonnel to communicate with each other. MOTION BY MILLAR, SECONDED BY ERICKSON TO OPEN THE PUBLIC HEARING. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried and the public hearing opened at 7:15 p.m. Comments: Bernie Schwanbeck, 5401 Centennial Street SE, asked if the dates are set for the April and May tax hearings. Teschner: Explained that there are four opportunities for people to address their concerns. The first is in February when the public receives evaluation notices. Scott County encourages people to address their individual concerns with them on a one-to-one basis any time during February, March and April. If con- cerns are not resolved, the resident should attend the equalization hearing on May 5, 2008. Following that, a resident could go before the Scott County Board in June; and finally could go to the Scott County District Tax Court. Dates for those events are sent out with the evaluation notice. Art Yeske, 5333 Bounty Street SE, believes it is past time for someone to address the upcoming energy shortage. Asked the city to be prepared. Commented on that it seems the lower the property value, the higher the percentage of the tax paid and believes there is property that is selling below the bottom thresh- old that the assessor is supposed to assess at. Commented also on the special assessment coming for the Brooksville area stating he does think there is concern about drainage nor need for curb and gutter. Ken Boyles, 15358 Breezy Point Rd SE, stated the presentation had to do with what is being spent, but did not address where the money is coming from. Noted that not all revenue is from property taxes. Stated he did not find the complete budget on the Website, but assumes the Council has reviewed it. Asked why taxes cannot be held down to 2-3% rather than 7%. Noted the contingency fund is planned for $250,000 3 City Council Meeting Minutes December 3, 2007 DRAFT and asked if the entire 2007 contingency fund was spent or if there is carry over. Asked if money is spent at the end of the year if there is a fund balance remaining. Robert Peterson, 14956 Pixie Point Circle SE, asked what the cash balance is for each fund. Asked if there is a windfall in revenue because of lower taxation amount due to property value being phased out this year; and if we are getting that windfall, why are we raising the mill rate. Asked if the anticipated increase goes up exponentially as valuation goes up, or linearly; as his tax amount went up 15.5% this year. Haugen: Asked if the city portion increased by 15.5%. Peterson: Affirmed, stating the amount of increase. Haugen: Asked the amount of the valuation difference from the previous year. Peterson: Replied that the valuation had not changed much. Haugen: Asked Peterson to share valuation numbers with the Finance Director for later discussion. Dick Felch, 3531 Willow Beach Trail, expressed concern that not all sources of income were shared in the presentation and stated he would like to know where money is coming from. Stated the comparisons were all between the 2007 and 2008 budget and he would like information on what the 2007 expenditures were compared to the 2007 budget. Stated that costs have been distributed over franchise fees, user fees, etc. and he would like a complete evaluation of what it is really costing taxpayers. Dave Thompson, 15738 Island View Road, stated he is the chair of the Citizens for Accountable Govern- ment group. Believes taxes have doubled in the past five year (inclusive of county, city and school) and it seems excessive. Stated that CAG wants to have input and is willing to work with officials to come up with an amount that seems to be well balanced. Asked if they could give input at any future budget meetings. Wes Mader, 3470 Sycamore Trail, believes the purpose of city government is to provide services for resi- dents that they cannot provide for themselves and recognizes that taxes are to pay for those services, but believes the tax level is unwarranted. Gave examples and stated this will be the fifth tax increase in six years. Stated that CAG believes the necessary services could be provided without a tax increase and listed amounts that he believes are surplus and accumulating to an amount of $32.7 million in cash or cash equivalents. Commented that the justification given for tax increases was that the city was not getting its fair share from the state and other sources and not as much from building permits. Believes intergovern- mental revenue increased and that licensing, permit and service revenue forecasts are for increases. Noted that franchise fees are passed along to the residents and that Savage did not approve same be- cause it is a hidden tax. Believes there is room in the budget to give residents a break and eliminate the tax increase. Jon Schlegel, 5488 Candy Cove Trail, believes the city has everything now (fire station, city hall, etc.) and it is time to rein it in. Kevin Bergstrom, 16030 Eagle Creek Avenue, stated his overall tax is up 14% with a 7% increase from the city. Stated the County Assessor admitted that their database is inaccurate and out of proportion. Haugen: Replied that he appreciates Bergstrom's legitimate concern and knows he has been working with the county. Reminded Bergstrom that tonight's hearing is not about valuation. Joe Benedict, 15341 Eagle Ridge, asked the difference between residential and commercial tax base stat- ing he would like to see those revenues. Stated he would like the city to have more non-taxable revenue sources and would like the city to have a discussion with the public about ways for the City to reduce ex- penses. John Myser, 16015 Northwood Road, commented on the city opening a senior center for a small segment of the community asking if there has been an analysis of having a senior center and whether the city is en- suring that it will be revenue neutral to the taxpayers. MOTION BY HEDBERG, SECONDED BY ERICKSON TO CLOSE THE PUBLIC HEARING. 4 City Council Meeting Minutes December 3, 2007 DRAFT VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried and the public hearing closed at 7:55 p.m. Comments: Finance Director Teschner responded to the questions and comments posed by the public: . Schwanbeck, provided information about opportunities for people to contact the assessors regard- ing valuation of their homes. . Yeske, gave examples of ways the Council and staff have considered to reduce energy demands. Mayor Haugen noted that a presentation will be made in two weeks about energy conservation ef- forts moving forward. . Boyles, explained that 7% was the tax levy increase resulting in a 3.95% increase for individuals who experienced the norm. Teschner noted that if a resident's valuation remained constant, the tax would have gone down; and that market value adjustments were being made on lake property as well as properties that were experiencing "catch up." Explained the five categories of revenues: property tax provides about 65%, intergovernmental aid is 11 %, charges for services is 13%, li- cense and permits is 5% and miscellaneous sources is 6%. Regarding expenditure of contin- gency fund, explained that state statute requires any funds that are not expended will lapse into the general fund balance unless the Council appropriates them to be used for another purpose. The contingency fund is intended to cover emergencies or projects that the public wants the Coun- cil to do and provides working capital for the city to operate. Explained that the city requested in- creased Minnesota State Aid funds to be funneled to street maintenance for overlay. They are dedicated funds and cannot be used for anything other than what they are applied for. Noted that all other state aid funds have been flat and no general state aid funds are received. Stated there was an increase from townships for their share of the debt associated with new equipment pur- chased because of the 2006 referendum (fire truck and aerial platform truck). . Peterson, regarding cash and cash equivalent balances, noted the city has 22 funds and they are not discretionary for the Council to spend for property tax write downs. Explained that the Council has authority over general fund monies. Explained that no tax revenues go into enterprise funds and those funds are reserved for such things as sewer lines, assessment prepayment, bonded in- debtedness, etc. Informed the Council that limited value (where all market values have to be the same as true market value) was instituted by state legislature a number of years ago and will phase out after 2009. A number of properties currently at minimum value will be getting the 15% valuation adjustment - it does not create a windfall because the property tax amount levy is a fixed amount. The limited market value will just redistribute tax burden. Explained why limited market value was put in place. Emphasized that a property owner's market value should be analyzed to see if it is equitable and to use the appeals process if necessary. . Felch, state statute requires the city to provide two years of actual expenditures and the budget amount for the current year so the city is following statutory guidelines for the information it pro- vides. Reiterated that the five categories of revenue are outlined in the budget. . Thompson, noted that budget discussion meetings are open to the public and CAG is welcome to be at the meetings. . Mader, commented that when considering percapita expenditure increase it is important to realize how the numbers are evaluated and that things like building a new city hall are anomalies that are not related solely to the general fund budget. Stated again that the $33 million inferred to be cash and cash equivalents consists of dedicated funds identified earlier as well as the five million in the general fund and six million in enterprise funds. 5 City Council Meeting Minutes December 3, 2007 DRAFT . Schlegel, explained the Council has a master building plan that included the fire stations, police station, city hall, water treatment facility, etc. and were improvements that were made over a num- ber of years. The building plan will be concluded with the water treatment facility which is being paid for with user fees rather than property tax. . Bergstrom, concerns are valuation related and need to be worked out with the assessors office. . Benedict, responded that tax revenue is approximately 90% from residential valuation and 10% commercial. Noted the city is working to attract new business to provide a tax base and employ- ment base, but it is not expected that Prior Lake will ever have a majority of its tax base from com- mercial. Explained the city charged the utilities franchise fees to cover the costs of easements and that the utilities passed that cost along. Noted that in regards to intergovernmental revenue, it is not negotiated, but rather dictated to us. . Myser, the senior center is not planned to be revenue neutral, but rather a service provided to the senior community. Hedberg: Expressed appreciation for all comments made and addressed several topics: 1) Senior center - the Council commissioned a task force to consider a senior center and they found that surrounding com- munities have had senior centers for 20 years or more. Believes seniors are an increasingly important part of the community and a segment that does not use the parks, which is one of the most significant benefits of the city. It was recommended to use the space available in the library and fund a half-time person. 2) Commercial tax base - it is important to continue developing the commercial tax base, but the city will never have a significant reduction in property tax because of lack of land available and lack of traffic through the community. 3) Spending - noted that Prior Lake was a high tax city for many years and is now ranked 54 out of 117 and expected to go down further. Stated it is important to strike a balance; people expect quality services and most of our spending goes for police, fire, sewer, water, parks and streets. 4) Building - agreed there has been a significant building campaign for the past decade and the city buildings were underinvested for a long time. Every building constructed was critically needed. 5) Efficiency and productivity - staff focuses on improving efficiency and productivity and the city administration spends time and effort to do things more efficiently which is reflected in the budget for staff. Millar: Concurred with many Hedberg comments. Believes it is good to be "held to the fire" and it is good to understand why the decisions are made. Stated his willingness to meet with the CAG. Commented that senior citizens have been the most neglected in this community and many are on fixed incomes with in- creasing taxation. Believes it is Important to keep an eye on resources and quality of life issues and many of the seniors have been paying taxes for decades and we owe them. We are approaching the project in a responsible way. LeMair: Expressed appreciation for the time and effort of people coming to this meeting. Agreed that there is an opportunity to change some things and come in with a flat budget next year. Believes we have added great services to this community and can take a step back now. Need to get a fuel plan and find alternative resources. Noted the Council had much discussion about revenue predictions and already re- duced this budget by $200,000. Stated he would like to discuss the environmental learning center project and its current status in relationship with the school district partnership. Asked how long franchise fees have been paid. Teschner: Replied the cable franchise has been in effect for more than ten years and he is not aware of any city that does not charge a franchise fee for cable. We are in first full-year funding for the electric fran- chise in 2008. Noted that 24 cities in the metro area adopted franchise fees last year. Gave examples of other city's fees that Prior Lake does not charge. LeMair: Commented that it seems more fair to have franchise fees across the board rather than just for some companies. Stated he served on the senior center committee; $42,000 was budgeted for staff and 6 City Council Meeting Minutes December 3, 2007 DRAFT programming and other monies for remodeling, which does not include a full kitchen. Committee members offered skills and services to keep the costs of remodeling low. Believes Prior Lake is the only metro area that does not have a senior center and there should be a place for this group to go. There is senior hous- ing spread out throughout the community and this can serve as a hub. The space will be offered for use to other groups so it will be a multi-functional facility. Stated that CAG is welcome to come to budget meet- ings and he is willing to attend their meetings although after signing up he has never received any invida- tions. Erickson: Thanked the audience for their input and the respectful presentation of concerns. Agrees with the basic functions of the city budget. Expressed appreciation for Mader's presentation of concerns and stated it is unfortunate that we have not been able to get input from CAG on a regular basis rather than just at election and tax hearing times. Suggested that when there are openings on commissions and advisory groups, members of CAG should apply to become part of the process. Believes that franchises should not be passed to residents for utilities that are necessities and noted the difference for a franchise fee from a cable company since use of cable is optional. Commented that the Finance Report Card is part of the story; and Mader presented another part of the story. Believes one side should not be pitted against the other, but rather they should work together toward making the city the pride of the area. Agrees it is time to have a senior citizen center. Believes the Council has done a good job of spending money appropriately and seeking to find ways to be cost effective. Haugen: Thanked all for their participation. Noted that neighboring cities had higher tax increases and no one at their Truth-in-Taxation meetings and believes that it is positive that citizens are engaged and seek- ing common solutions. Commented that the Comprehensive Plan is a land use plan and the 2030 Vision is a strategic plan for overall direction of the city which did not exist before he was Mayor. Cited accomplish- ments from the strategic plan such as approving TIF financing for senior housing, changes in downtown redevelopment, changes to CR 21, improvements at Ryan Park, purchase of Pike Lake Park with leverag- ing and grants, development of four new wells, development of SCALE leading to regional planning and a training facility, etc. Commented on the purchase of Spring Lake Regional Park noting that it generally costs more when expenditures are delayed. Community survey results show that people think we are moving in the right direction. Stated the city has done a lot and it is time to take breather, but noted that when taking action to catch up, money must be spent to invest before it can create revenue. Impact to the average taxpayer in Prior Lake over the last six years has averaged 2.48% and accumulated to 17.3% while valuation of the average home has gone up 62.6%. Downtown Dazzle was a significant event with over 800 people attending; six years ago there was no downtown. Comparing to the state, noted that the current Governor took office with a no-new-tax pledge, but state income tax revenue has gone up 49.2%. Prior Lake hasn't created new taxes; the major revenue is property tax. The city tax rate is the lowest in Scott County. Commented that he wanted franchise fees to be a tax because taxes can be written off, but that didn't evolve. Noted that recently a group presented the master park plan for the community to the Council at a work session. There are nearly 5,000 kids participating in Prior Lake Athletics for Youth. They are not a special interest group, but rather a part of our community and we need to provide facilities for them. The master park plan projects that $13 million will be needed for park development over the long term; but the Council responded that no referendum should be proposed until the school district can fix the problems they have. Continued with comments that the environmental learning center needs further con- sideration since the school referendum failed. It is a project with three partners and the resources are not available from the school district. Advised the audience that when finalizing the budget, the Council will take into account everything that has been said and will consider both short and long term effects. MOTION BY LEMAIR, SECONDED BY ERICKSON TO DIRECT STAFF TO PLACE THE BUDGET ON THE DECEMBER 17 CITY COUNCIL AGENDA FOR FINAL ACTION. 7 City Council Meeting Minutes December 3, 2007 DRAFT VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. RECESS Mayor Haugen called a recess at 9:15 p.m. RECONVENE The meeting reconvened at 9:30 p.m. Special Assessment Public Hearing for Improvements on Ida Circle and Trunk Highway 13 (City Project #06.11). Assistant City Engineer Poppler provided background information for the project. Identified properties that qualify for septic system credit and explained how that affects the assessment for a property owner. Invited affected property owners to inform the city if their septic system is newer than 20 years in order to receive a credit. Finance Director Teschner explained the assessment rate, classification and payment terms. Explained methods of payment available and the deferred assessment policy. Comments: Erickson: Clarified that the street reconstruction portion of the project is to be assessed at 40%. Teschner: Affirmed. Hedberg: Asked the financial impact of the septic system credit. Teschner: Replied that we are aware of four parcels being eligible for the credit if they submit appropriate documentation. Poppler: Stated that if all four are compliant, there would be $20,900 of credit. Teschner: Added that the Council would be requested to approve street reconstruction bonds for any part that is not assessed and it would be recovered on an annual tax basis over ten years. Millar: Asked the timeline for the compliance information to be submitted. Poppler: December 17. MOTION BY HEDBERG, SECONDED BY MILLAR TO OPEN THE PUBLIC HEARING. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried and the public hearing opened at 9:47 p.m. Comments: Eric Nordin, 17191 Langford Blvd, stated his septic system was installed in 1999 and is compliant. In- formed the Council that at the time of the orderly annexation he submitted ideas to the township about what should be included with the orderly annexation agreement. One item was a credit for septic systems that were installed recently. Stated the original credit amount was $9,000 and that has now been reduced sig- nificantly, and he saw no justification for it to be anything other than $9,000 in the annexation agreement. Referred to section 7.2 of the annexation agreement and requested that the City to abide by the orderly annexation agreement. Teschner: Replied that the intent of the credit schedule was to provide a table for perpetuity, there was no indexing and it provided no amount of the credit for the assessment. It was intended for the credit of the septic system to offset the sewer assessment, but no credit would be applied toward the water assessment. In essence, Nordin would have no sewer assessment, but the credit would not be applied to the entire pro- ject assessment. Nordin: Stated he contacted Township Supervisor Berens and stated that Beren's recollection was also that the credits were intended to deal with the stranded investment of a relatively new system that would 8 City Council Meeting Minutes December 3, 2007 DRAFT have to be abandoned to connect to city services. Asked to be shown where it is written that credits need to be applied in the manner described by Teschner and again asked the City to abide by the written agree- ment. Erickson: Asked the cost incurred for installing the septic system in 1999. Nordin: Replied he was not absolutely sure, but it was close to $9,000 with much work done by himself. Teschner: Commented that section 7.2 is interpreted to be a credit to the special assessment. The sewer assessment is determined and the special assessment will be credited for a compliant or non-compliant amount according to the table. The property owner will not be paid for the difference. Nordin: Stated he is not making money on this project and since annexation, taxes have gone up and now there are assessments and connection fees. Perhaps the location of a manhole will mitigate connection charges but then assessment charges will be higher. Reminded the Council that no resident on TH 13 peti- tioned for these services, but were included at the City's discretion. Pace: Stated she drafted the agreement and it was negotiated with Township Trustee Steve Pearson of Spring Lake Township. The credits were an area of compromise. At that time, there was a case coming out of Scott County about how to treat compliant systems when putting in sewer and water facilities and value of the remaining useful life of a compliant septic system had to be recognized. With the value of that being "all over the place," it was agreed that the agreement would provide two tables based upon the years of a compliant septic system had been in place. This was set up to avoid subjective fact-finding and analy- sis of each system. If the assessment is less than the offset, it was never intended that the City would write a check to the property owner for the difference. The schedule was only intended to benefit the property owner for the normal useful remaining life of the septic system. Nordin: Clarified that the table is not intended to address stranded investment. Pace: Confirmed that was never contemplated. It was intended to recognize that the city cannot take property without compensation. The court recognized that there is remaining useful life of the septic sys- tem and the tables reflect credits that will be applied to value systems and thus reduce an assessment. Nordin: Asked if the topic could be revisited on December 17 if Steve Pearson disagrees with Pace's inter- pretation. Teschner: Stated that the orderly annexation is not open for discussion at this time. Nordin's assessment would go to zero dollars but would not carry over to water assessments or provide for payment for him. This has significant impact going forward in the annexation area for all parcels with compliant septic systems. Pace: Confirmed that there is no opportunity to discuss this further. It is a contract that was negotiated and agreed upon by the parties. The terms are clear and "intent" can not be inferred to change the mean- ing of the written instrument. The agreement deals with real property and the city will live with the contract. Haugen: Stated that from a procedural standpoint it was necessary to conduct a public hearing. The topic will be brought to the Council in two weeks to finalize the decision and during that period of time it can be discussed with staff. MOTION BY LEMAIR, SECONDED BY MILLAR TO CLOSE THE PUBLIC HEARING. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried and the public hearing closed at 10:02 p.m. OLD BUSINESS No old business was brought before the Council. NEW BUSINESS Consider Approval of an Ordinance Amending Subsection 602 of the Prior Lake City Code Related to Dutch Elm and Oak Wilt Diseases. 9 City Council Meeting Minutes December 3, 2007 DRAFT Public Works Director Albrecht stated that current ordinance is outdated. Reviewed the proposed changes that reflect that most elm trees in the city are diseased and cannot be saved; and city resources for removal are exhausted. Proposed that unless the tree is posing a hazard to public health and safety, it should not be pursued for removal. Suggested using City resources to try to save oak trees. Comments: LeMair: Agreed the section regarding dutch elm should be removed. Asked how oak wilt spreads. Albrecht: Replied that it spreads from tree to tree by wounds on the tree or through roots and recent drought conditions have exacerbated its spread. LeMair: Asked if people with dutch elm had assessment options. Albrecht: Believes no one exceeded $3,000 to $4,000 for tree removal. Now, some costs are up to $10,000. Teschner: Commented that a few years ago the City had an aggressive dutch elm program and carried large assessment rolls for that. LeMair: Supports continuation of the assessment option. Believes the diseased oak should be removed. Erickson: Commented on the 8% interest rate for such assessments. Albrecht: Responded that it is the maximum according to the ordinance, but currently the rate is 6%. Erickson: Clarified whether the city would provide the up-front funding. Teschner: Replied that the City is losing investment income on the money that is provided, but this is not anticipated to be a line item in the budget; rather, it would be taken out of contingency. Council can choose to waive the interest charges. Erickson: Affirmed the City is not giving money to the property owners, but rather loaning the money and collecting interest on it so the only expense would be in using staff. Asked how many staff hours are used for this ordinance enforcement. Albrecht: Currently, the entire City is viewed which requires three weeks with two people. The proposed ordinance would allow us to allocate fewer hours. Millar: Commented that the money has to be appropriated from somewhere so it would have to be part of the budget. Albrecht: Affirmed, and noted that it is unknown how many property owners might approach the city for this assessment assistance. Hedberg: Clarified whether there are significant elm trees in the City. Albrecht: Replied that the elm trees died out in the 1980s. Second growth has reached 8-12 inches and is now dying off. The current ordinance is not protecting any resource because there are no healthy elms in the City. Hedberg: Asked if there are any grant programs available from the DNR. Albrecht: Replied that the DNR offers technical assistance and money for reforestation, but not to remove existing trees. Hedberg: Believes the City should be cautious about allowing people special assessments for five years and incurring possible costs of hundreds of thousands of dollars. Albrecht: Replied that if oak wilt can be contained, we might be able to forego the large amounts. Hedberg: Asked if taking out trees selectively will control oak wilt, or if they are expected to die anyway. Albrecht: Described removal and trenching that controls oak wilt. Hedberg: Commented that elm removal didn't protect the other trees from dutch elm because it was spread by a beetle. Will support. Haugen: Expressed concern about moving away from dutch elm enforcement on private property. Albrecht: Stated that if other cities aren't enforcing it, the disease will continue to move and we would not be able to catch up with the disease. 10 City Council Meeting Minutes December 3, 2007 DRAFT MOTION BY HEDBERG, SECONDED BY LEMAIR TO ADOPT ORDINANCE 107-17 AMENDING SECTION 602 OF THE PRIOR LAKE CITY CODE. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Consider Approval of a Resolution Denying a Request by Burnsville Baseball Association 191 for a Pull Tab License for O'Malley's on Main. City Manager Boyles described the experience of previous licensure and stated was no benefit received by local organizations or even to Baseball 191 based upon their own reports. Comments: Millar: Asked what the benefit is to O'Malley's. Boyles: Replied they received monthly rental as well as the benefit of providing the activity to customers. Millar: Asked if O'Malley's would have an opportunity to replace the activity. Boyles: Replied that there are three organizations in the community that provide pull tab activity and O'Malley's has been advised of them. Millar: Stated that if there is no benefit for the City, he is inclined to support the resolution. Hedberg: Commented that the three other organizations operate their pull tab operations in a way that makes a profit and they contribute back to the community. Supports the denial. LeMair: Recalled when the license was originally applied for and said it is disheartening to see no benefit from it. Favors not granting the license. Erickson: Asked if the other three organizations pay rent from the profits. Haugen: Responded that there is revenue that is paid to the host establishment in one form or another. Generally there is a manager for the operation and how it is operated may differ from one organization to another. Erickson: Will support the proposed resolution. Haugen: Stated the Council had wanted to assure that profits went to Prior Lake organizations and that apparently isn't happening. MOTION BY MILLAR, SECONDED BY LEMAIR TO APPROVE RESOLUTION 07-201 DENYING THE REQUEST OF BURNSVILLE BASEBALL 191 FOR A PULL TAB LICENSE FOR O'MALLEY'S ON MAIN FOR THE PERIOD JANUARY 1, 2008, THROUGH DECEMBER 31,2009. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Consider of Approval of a Resolution Approving a Pension Increase for the Prior Lake Fire Depart- ment Firefighters Relief and Pension Association. Finance Director Teschner explained the current funding level as well as results of a survey taken of funding levels for surrounding metro areas. Comments: LeMair: Believes the increase funding level would be well deserved and the City has been trying to ratchet up these amounts over a period of time rather than implementing it all at once. Will support. Erickson: Noted the increase would have no impact on taxes paid. Money is coming from the insurance fund and there have never been any references to the integrity of the fund. Teschner: Noted that the fund is professionally managed and signing privileges on the fund include the Fire Department Treasurer, the Mayor and the City Manager; and the fund is certified with the state and reviewed annually. 11 City Council Meeting Minutes December 3, 2007 DRAFT Erickson: Commented that only a small percentage of taxes go to the fire department and it is a good deal. Teschner: Commented that surrounding municipality tax levies for fire service are much higher. Millar: Stated the Prior Lake Fire Department is the best value the City has. Will support. Hedberg: Commented that one of the seven financial gold standard measures is the funding of the fire relief association pension and we were 115% in the 2006 report. Asked what the 115% will become when this resolution is acted upon. Zieska: Replied that 2007 will end at 114%. In 2008, the overfunding is projected to continue and no tax implication is proposed. Hedberg: Asked if this is a step toward statutory maximum in future years. Zieska: Agreed the plan is to stay at the 115% funding and anything over that would be put back in as a pension increase. Haugen: Noted that one of the reasons this becomes such a good financial alternative is because of the valuation of our community and the revenue that comes from insurance on higher value homes compared to the number of firefighters. If the community had more houses of lower valuation, we would not develop the 2% from the insurance premiums and there would be a higher number of firefighters which would man- date municipal contributions. This is a great benefit for us. MOTION BY LEMAIR, SECONDED BY MILLAR TO APPROVE RESOLUTION 07.202 APPROVING A PENSION INCREASE FOR THE PRIOR LAKE FIRE DEPARTMENT FIREFIGHTERS RELIEF AND PENSION ASSOCIATION. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Consider Approval of a Resolution Authorizing Staff to Solicit Professional Services Proposals for the Itasca Avenue Watermain Extension Project. Public Works Director Albrecht requested approval to solicit professional services for a watermain exten- sion project. Stated the proposed project has been in the City's Capital Improvement Program for several years and it would be appropriate to do it in conjunction with water treatment facility construction. Staff does not have the capabilities for this project so a consultant is needed. Request For Proposal was sent to four companies in the consultant pool for this type of service. Comments: Hedberg: Asked if easement acquisition costs will be significant. Albrecht: Replied that is unknown at this time. Noted the CIP has $450,000 included for professional ser- vices and easement acquisition costs and City staff will do the final design. Millar: Makes sense to move ahead with this. Erickson: Will support. All of the wells need to be placed on line in conjunction with the water treatment facility. LeMair: Will support. There is a significant investment in water treatment systems. MOTION BY HEDBERG, SECONDED BY MILLAR TO APPROVE RESOLUTION 07.203 AUTHORIZING STAFF TO SOLICIT PROFESSIONAL SERVICES PROPOSALS FOR THE ITASCA AVENUE WATERMAIN PROJECT. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Consider Approval of a Resolution Appointing a Representative and an Alternate to Serve on the Outlet Channel Joint Powers Board. 12 City Council Meeting Minutes December 3, 2007 DRAFT Public Works Director Albrecht requested the Council to appoint a representative and alternate to the Outlet Channel Joint Powers Board. Explained the purpose of the Board and the funds it oversees. Sug- gested that the Council watershed liaison act on this board, and that Albrecht serve as alternate to provide technical assistance. Comments: No comments offered. MOTION BY MILLAR, SECONDED BY LEMAIR TO APPROVE RESOLUTION 07.204 APPOINTING THE CITY COUNCIL WATERSHED DISTRICT LIAISON TO SERVE AS A REPRESENTATIVE AND THE CITY PUBLIC WORKS DIRECTOR I CITY ENGINEER TO SERVE AS AN ALTERNATE AT THE PROJECT COOPERATOR MEETING HELD ACCORDING TO THE JOINT POWERS AGREEMENT AND MEMORANDUM OF AGREEMENT FOR THE RESTORATION AND MAINTENANCE OF THE PRIOR LAKE OUTLET CHANNEL. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Discussion of Social Host Ordinance Haugen: Stated he would like a report to evaluate the social host ordinances of Chaska and Mankato in order to consider the feasibility of such an ordinance for Prior Lake. Expressed concern about traffic speed on CR 21 and would like a report reflecting on alternatives to seek lower speed limits. Erickson: Queried whether speed issues on CR 21 should go to the Traffic Safety Committee and com- mented that the County controls the speed on that highway. Haugen: Replied that the City can be proactive and influence the decision about the speed. Albrecht: Stated that Scott County has submitted a request to the State on the CR 21 corridor. They stated they would install signage that was on CR 21 before construction and when the speed study is com- pleted, the signs would be redone. Noted traffic signals would be installed on Fish Point and Franklin in- tersections soon and a reduction of speed could be anticipated from that. Haugen: Asked that the report be an update of the status. MOTION BY HEDBERG, SECONDED BY MILLAR TO DIRECT STAFF TO BRING A REPORT ON: 1) A SOCIAL HOST ORDINANCE; AND 2) CR 21 TRAFFIC SPEEDS. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. OTHER Community Events Millar: Complimented the Chamber of Commerce for hosting a terrific Downtown Dazzle. 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 10:55 p.m. Frank Boyles, City Manager Charlotte Green, Administrative Asst. 13