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HomeMy WebLinkAbout12 19 11 City Council minutes 4646 Dakota Street SE Prior Lake, MN 55372 REGULAR CITY COUNCIL MEETING MINUTES December 19 , 2011 CALL TO ORDER The meeting was called to order at 7 :00 p.m. Present were Mayor Myser, Council members Erickson , He d- berg , Keeney and Soukup, City Manager Boyles, City Attor ney Pace , Finance Director Er ickson, City Eng i neer / In s pections Director Poppler, Community and Economic Development Director Rogness, Public Works/Natural Resources Director Gehler, Fire Chief Hartman, Assistant City Manager Meyer and Administr a- tive A s sistant Green. PUBLIC FORUM The Public Forum is intended to afford the public an opportunity to address concerns to the City Council. The Public Forum will be no longer than 30 minutes in length and each presenter will have no more than ten (10) minutes to speak. Topics of discussi on are restricted to City governmental topics rather than private or polit i- cal agendas. Topics may be addressed at the Public Forum that are on the agenda except those topics that have been or are the subject of a scheduled public hearing or public inform ation hearing before the City Cou n- cil, the Economic Development Authority (EDA), Planning Commission, or any other City Advisory Committee. The City Council may discuss but will not take formal action on Public Forum presentations. Matters that are the s ubject of pending litigation are not appropriate for the Forum. Comments: Lloyd Erbaugh, 17291 Marshfield Lane , want s a town where residents express opinion, debate issues and then work to build consensus around policy issues. Commented on Lakefront Da zzle. Asked Mayor what it is like to have responsibilities of Mayor and what he likes about it. Commented on the December 5 public hea r- ing and discus sion the Council and staff entered into about what kind of City we want P rior L ake to be and what kind of services should be offered. Believes a fundamental question is what kind of government we want and whether the steps being taken will lead to that. Commented on strengths of staff and complimented le a- dership of the City Manager. Encouraged everyone to get involved in local government in a positive results oriented way . APPROVAL OF AGENDA MOTION BY SOUKUP, S ECOND BY KEENEY TO APPROVE THE AGEND A AS PRESENTED . VOTE: Ayes by Myser, Erickson , Hedberg, Keeney and So ukup . The motion carried. APPROVAL OF MEETING MINUTES MOTION BY HEDBERG , S ECOND BY KEENEY TO APPROVE THE MINUTES OF THE DECEMBER 5 , 2011 MEETING AS PRESENTED. VOTE: A yes by Myser, Erickson, Hedberg , Keeney and Soukup. The m o tion carried. CONSENT AGEN DA City Manager Boyles reviewed the items on the consent agenda. A. Consider Approval of Invoices to be Paid B. Consider Approval of Treasurers Report C. Consider Approval of Building Permit Summary Report D. Consider Approval of Animal Control Service s Report Phone 952.447. 9800 / Fax 952.44 7 . 4245 / www.cityofpriorlake.com E. Consider Approval of Fire Department Report F. Consider Approval of 2012 Cigarette License Renewals G. Consider Approval of Resolution 11 - 144 Authorizing the Purchase and Conveyance of Tax Forfeited Prope r ty H. Consider Approval of Resoluti on 11 - 145 Electing the Non - Waiver of Statutory Municipal Tort Liability Limits and Declining Excess Liability Coverage I. Consider Approval of a Taxicab License Renewal for Southwest Metro Taxi J. Consider Approval of 2012 Massage Therapy License Renewal s MOTION BY ERICKSON , SECOND BY SOUKUP TO APPROVE THE CONSENT AGENDA AS PR E- SENTED. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. PRESENTATION None scheduled. PUBLIC HEARING Public Hearing to Consider Approval of R esolution 11 - 146 Giving Preliminary Approval to the I s suance of General Obligation Capital Improvement Plan Bonds in an Amount not to Exceed $10,000,000 and Adopting the City of Prior Lake, Minnesota, Capital Improve ment Plan for 2012 through 2016 Financ e Director Erickson introduced Steve Mattson of Northland Securitie s . Mattson provided a brief history on law change s that allow public buildings to be funded with general obligation bonds if the CIP process is used and a public hearing is held. The City has an EDA bond outstanding since 2005. Interest rates have gone down since 2005, the bonding could be change d f rom a revenue bond to a general oblig a tion bond subject to 30 day reverse referendum provisions in the statute , and the bond issue will be les s than the $10 million threshold for ban k qualified financing. Reissuing the bond could save more than $1 .2 mi llion in f u- ture bond payments over the life of the bond . Suggested getting the bond to the marketplace soon after the first of the year. Co mments: Keeney : Stated that the Economic Development Authority (EDA) approved the bonding and questioned whether the EDA would have to approve calling the existing bond. Mattson : Affirmed that the EDA would have to pass a resolution to call bonds in ea rly January . Erickson : Commented that bank qualified financing is how the City staged bonds that were recently i s sued. Than ked Mattson for his assistance with that. Soukup : Noted the bond market has been good for our City. Understands this is procedu ral step. MOTION BY HEDBERG, SECOND BY E RICKSON TO OPEN THE PUBLIC HEARING. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried and the public hearing opened at 7:18 p.m. Comments: No person stepped forward to speak. MOTION BY SOUKUP, SECOND BY KEENEY TO CLOSE THE PUBLIC HEARING. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried and the public hearing closed at 7:19 p.m. 2 12 19 11 City Council meeting minutes Comments: Mattson : Expressed his belief that there is a good chance of getting these bonds issued while interest rates are still favora ble, but noted the issue cannot be closed prior to 30 days from this date. Pace : Queried whether the EDA will have to hold a public hearing. Mattson : Replied they would not. Keeney : C larified that this new funding will be City bonds and the EDA bonds will be called. Mattson : Affirmed. MOTION BY HEDBERG, SECOND BY ERICKSON TO APPROVE RESOLUTION 11 - 146 GIVING PRELIM I- NARY APPROVAL TO THE ISSUANCE OF GENERAL OBLIGATION CAPITAL IMPROVEMEN T PLAN BONDS IN AN AMOUNT NOT TO EXCEED $10,000,000 AND ADOPTING THE ADDENDUM TO THE 2012 - 2016 CAPITAL IMPROVEMENT PR O GRAM. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. OLD BUSINESS Consider Approval of Resolution 11 - 147 Adopting 2012 Prior Lake Budgets and Certifying Final 2012 City of Prior Lake Property Tax Levy to Scott County Department of Taxatio n Finance Director Erickson updated the Council on the status of the 2011 budget and related the items that are projec ted to be higher than budget : tax payments received , licenses and permits, intergovernmental rev e- nue, workers comp premium divi dend and property divi dend . Stated that the total projected amount to exceed budget is $828,000. Noted that a final tax revenu e amount is received in January which is included in the pr o- jection. The expenditure side of the equation will not be known until February. Comments: Hedberg : Clarified that the total revenue for 2011 is anticipated to be $ 12,950,000 . J. Erickson: Affir med. M yser : Asked for clarification on the expense side. J. Erickson: Through Nov ember 15 , the City appears to be about $ 500,000 under budget, but there will be more expenses for the final six - seven weeks. E xpenses are anticipated to come in close to b udget . Hedberg : Clarified that the projected budget planned to spend down reserve. J. Erickson: Affirmed. Erickson : Reiterated that the proposed 2012 budget planned to reduce the reserve and queried whether ta k- ing an addition $342,000 from the reserve would result in the rest of the proposed budget remaining the same . J. Erickson: Affirmed, a ssuming the projected expenses remain the same. Keeney : Stated this p uts more surplus reserve into the discussion. Believe s there should be a plan to r e duce the levy to bring the surplus down. Favors an additional reduction to the levy. Opposes the increase on the expense side. Asked where enterprise funds will be at year end. J. Erickson: Replied that utility billings were higher this month , but she did no t prepare the project funds i n- formation for this meeting. Soukup : Clarified that expenditures are expected to come in on budget at $ 12.2 million . J. Erickson: Affirmed and explained the GAP principals that are followed with the City operating on a cash basis throughout the year and the accruing of 2012 expenses that are actually paid in 2011 . Soukup : Stated she is o pen to discussion on the topic and believes we need to address budgeting to the trending of the past 10 - 15 years. Hedberg : Clarified p rojections. Favor s rolling $ 110,000 to $ 150,000 into further levy reduction as that still achieves the fiscal policy. Since the City r eceived additional windfall revenue , the levy reduction could be achieved. Erickson : Suggested the levy be reduced by $ 250,000 . 3 12 19 11 City Council meeting minutes Hedberg : Reiterated that a $6 50,000 surplus had been forecast for 2011 , but now th e surplus is forecast to be $7 62,000 , justifying the $112,000 amount . Myser : Noted that 2011 building permits are a t 112 rather than 60 and questioned whether t he projection for the 2012 budget should be increased. J. Erickson: Replied that the projections are based on the current level of platting, how many vacant lots are available, etc. If a majority of new plats have already picked up their permits, there may not be as many in 2012. Noted that h igher revenues have higher expenditures , for example a high er level of permi t ting requires staffing. We a nticipate current staffing is adequate for 100 permits, but more than that would r e quire additional staffing to process. Myser : Asked about the anticipated level of tax re venue. J. Erickson: Replied that receiving 97% of taxes was planned for 2011 with the actual anticipated to be 96% . The actual for 2010 was 95%. Myser : Asked if there are any other key assumptions for 2012 revenue that should be adjusted. J. Erickson: Replied that increased building permits, corresponding charges for services, franchise fees and interest fees have been planned . Dividend premiums are not budgeted as they cannot be plann ed for. Myser : Believes the r eserves are too high and projections should not continue to include this level of r e- serves. Co n cerned that budgeting may be too conservative. Keeney : Suggested it should be a s imple mechanism to build in a ratio that would a utomatically adjust the levy related to how high or low the budget is to the reserves. Believes the levy should be reduced signif i cantly this year. Stated the projected 2012 budget has changes that make it less conservative than it was the pr e- vious year. Agreed that events were not foreseen that went our way , but there could have been unexpected expenditures just as easily so those should not be discounted . Erickson : Commented that we cannot predict weather for street clearing and other unknown expens es . Su p- ports the budget the staff has been working with. Agree d that the levy can be reduced and suggests reducing the levy by the amount of the recent additional revenue. Soukup : Suggests basing the reduction on the actual received by Dec 15. Stated t he City is i n a good pos i- tion right now with unexpected dividends and permits being higher, and believes the tax levy should be a d- justed. Asked Keeney how he calculated his recommended reduction amount. Keeney : Replied that a third of the amount of mone y that is more than the targeted 45% for a reserve amount should be the amount that is used to calculate the tax levy reduction . Soukup : Stated she could compromise between the amounts suggested by Hedberg and Erickson. Myser : Identified that would b e approximately $ 195,000 . Hedberg : Commented that s ignificant changes have been made in the way inte rest expense is calculated; and building permits are a wild card so 85 is a logical number to use for next year. Since the fund balance at the TNT hearing which assum ed a surplus of $ 650,000 , the only thing that has changed is the forecast of $ 112,000 of additional surplus this year so that is the amount that the levy should be reduced by. Stated the l ong - term concern is capital requirements and how the ta x burden is managed . Believes w hatever is taken out of the tax levy now may have to go back in next year so only modest amounts should be incrementally r e- duced from the reserves. Proposed reducing the tax levy by $570,000 rather than $450,000 . Myser : Stated the ta rget surplus amount is $ 5.6 million and the actual surplus amount will be $7.8 million r e- sulting in $2.3 million of extra money. Believes half of that should be reduced in one year. Keeney : Concurred. Erickson : Stated he u nderstands Hedbe rg’s comments about volatility in tax rates from one year to anot h er. People need to know what to expect in upcoming years. Believes the proposed expenditure budget is valid. Suggested a $ 250,000 reduction in tax levy and asked what that impact would be for an average - valued pro p- erty . J. Erickson: Replied that the $ 450,000 reduction in tax levy anticipate d a $20 per household reduction and an addition al $250,000 reduction could anticipate an additional $12 per household. Myser : Queried whether there is a consensus for at least a $250,000 additional levy reduction . 4 12 19 11 City Council meeting minutes Soukup : Will support. Keeney : Affirmed. Hedberg : Clarified that means that the levy will be reduced a net of $700,000 . Keeney : Questioned whether there should be discussion on the expense. Stated he does not support the budget on the spending side with the projected increase of 4.5%. Myser : Does not support the budget believing it is too aggressive to add new positions that cause future e n- cumbrances on the City. Hedberg : Stated he s upports the staff additions and the expenditure budget. Soukup : Concurred stating the City is in a position where we have the work and need the positions and they should be provided. MOTION BY HEDBERG, SECOND BY E RICKSON TO APPROVE RESOLUTION 11 - 147 ADO PTING 2012 PRIOR LAKE BUDGETS AND CERTIFYING FINAL 2012 CIT Y OF PRIOR LAKE PROPERTY TAX LEVY TO SCOTT COUNTY DEPARTMENT OF TAXATION TO REFLECT A TOTAL LEVY OF $9,414,124 . J. Erickson: Clarified that it is the tax capacity base levy that is to be adjusted . Hedberg : Affirmed. VOTE: Ayes by Erickson, Hedberg, and Soukup. Myser and Keeney opposed. The motion ca r ried. Consider Approval of Resolution 11 - 148 With Findings of Fact Approving The Combined Preliminary and Final Plat to be Known as The Bluff s of Candy Cove Planner Matzke reviewed the conditions for the plat that had been requested by Council. Displayed the area affected and the pr oposed access to the lots over C ity property. Highlighted key proposed conditions on the revised resolution whic h reflects agreement between the petitioner and staff . Comments: Hedberg : Stated this is an u nusual site and situation with challenges that needed variances to comply with State and City requirements. Believes this will be good use of the property. P rovided a history of the Hwy 13 construction and vacation of land. Believes it is important to retain a buffer and much work must be done for it to be effective. Understands that the applicant is agreeable to the terms. Will su p port. Soukup : Stated tha t it is g ood to see these lots put to use ; but believes it un fortunate that the City had to get involved with the applicant and the nearby property owners. Erickson : Will support. Commented that it seems to be u p to the builders and the involved parties to dete r- mine what is the best way to work with the hill. Supports the resolution because it indemnifies the City and a l- lows the involved parties to neg o tiate and come up with a solution that works best. Keeney : Asked if the plan is to still have some amo unt of retaining wall. Matzke : Replied that the ultimate plan allows for some of the retaining wall to remain. Keeney : A sked about berming and retention of height; how trees will be managed and proposed noise mitig a- tion. Matzke : Replied t here is a tree preservation plan and the developer shows use of coniferous trees. A po r tion of the hill is proposed for removal with trees planted afterwards. Keeney : Noting that this is a difficult property to develop, asked if staff is actively looking at similar l ots around the lake. Matzke : Replied that this is a very unique property and ordinances have regulations no w that require larger lots. Lots were originally designed for cabins in the early 1900s. This one was complicated further by the right of way ac quisition in the 1960s by the State department. Keeney : Asked the City Attorney about the easement agreement. 5 12 19 11 City Council meeting minutes Pace : R eplied that the r esolution provides in item #3 that the applica nt will grant driveway easement. Stated that a revision to the resoluti on for approval was distributed to the Council at the meeting. Pr o posed that the owner of lot 31 be given a formal easement also. Terms and conditions may be somewhat different than this one . Noted that in the work session on variances there was discus sion about small lake lot s and having lak e- shore o r dinance to address them . Myser: Acknowledged the challenges of this project and that both the applicant and staff have committed much time to it. MOTION BY HEDBERG, SECOND BY KEENEY TO APPROVE RESOLUT ION 11 - 148 APPROVING THE COMBINED PRELIMINARY AND FINAL PLAT OF “THE BLUFFS OF CANDY COVE” AND SETTING FORTH CONDITIONS TO BE MET PRIOR TO RELEASE OF THE FINAL PLAT AS AMENDED PER THE DOC U- MENT DISTRIBUTED BY THE CITY ATTORNEY AND NOW IN THE COUNCIL’S HANDS . VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. NEW BUSINESS Consider Approval of Resolution 11 - 149 Approving the Comprehensive Financial Management Pol i cy Amendment Finance Director Erickson recalled that the Council held a work session on GASB 54 to discuss fund ba l- ance reporting and governmental fund type definitions. Steps for the Council to take before the end of 2011 were discussed. Reviewed the steps, processes and authorities to be revised in the policy. Foll owing discu s- sion with the audit firm, believes it appropriate to wait a year to consider fund balances to be committed to learn the ramifications of the additional accounting procedures that will be affected by fund balance reserve. Comments: Soukup : Commented that GASB 54 is classifying and defining the use of funds, spendable and non - spendable, etc. Asked if it would go into effect in 2013. J. Erickson: Replied the request is to implement in 2012, but fund balances in funds that could be class i fied as committed would not go through that step in 2012. Want to evaluate ramifications and additional accoun t- ing functions that will have to be done. There are additional steps to take to commit fund ba l ances. Hedberg : Commented this is largely a techni cal revision based on accounting standards which will have ram i- fications over time. Supports the recommendation to hold off committing funds to allow staff time to work through the ramifications. Keeney : Commented that the r eason this is a technical chan ge is that we have not had the issues this po l icy is designed to prevent , but rather have used the funds the way they were intended to be used. Staff will have to work through the technical challenges. Erickson : Supports. Relies on the expertise of fina ncial staff to assure funds are assigned in the proper area. Concurs with waiting to commit funds until staff has had time to learn the ramifications of doing so. Myser : Asked when staff anticipates comin g back to Council wi th recommendations. J. Ericks on: Replied it will likely be late in the fall. MOTION BY SOUKUP, SECOND BY KEENEY TO APPROVE RESOLUTION 11 - 149 ADOPTING THE AMENDED COMPREHENSIVE FINANCIAL MANAGEMENT POLICY. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carri ed. Consider Approval of the 2012 Official City Fee Schedule Finance Director Erickson reviewed the proposed changes to the fee schedule. 6 12 19 11 City Council meeting minutes Comments: Erickson : Questioned the changes to the MCES sewer rate and whether this change refers to the portion billed by the Met Coun cil. J. Erickson: Replied that the sewer rate has been separated into City and Met Council rate s to assure that the Met Council charges are treated as pass through billings. Erickson : Understands the sewer availability charge is fo r connection of a new property or if an existing pro p- erty changes its use. Keeney : Asked about the sewer fees for which the City charges. J. Erickson: Responded that amount is not changing and the list presented i nclude s only fees that are b e ing changed . Keeney : Asked if there a separate list of fines. J. Erickson: Noted that ordinances are being updated so they do not list a particular amount, but rather refer back to this fee schedule. Keeney : Noted that #19 on the list refers to a meter tampering f ee which sounds as though it gives permi s- sion and suggested the terminology should be that the amount is a fine. Pace : Suggested it could be r eferred to as penalty or a similar word. Hedberg : Clarified that sewer and water rates were last adjusted in 200 5. J. Erickson: Affirmed and added that stormwater rates were last changed in 2009. Hedberg : These rate increases for sewer and water are meant to signal a change in policy for billing to mo d- erate incremental increases rather tha n periodic large increas es. Reiterated the fee structure. Asked what the impact on the average household might be. J. Erickson: Replied that for a household using 8,000 gallon s per billing cycle , the impact would be about $8.15. Soukup : Asked about effective date of the on - s ale liquor license s that are implementing the third step i n- crease . J. Erickson: Replied that t hese rates will be in effect at the beginning of July. Soukup : Asked if new liquor licenses will follow the three - step process. J. Erickson: Replied t hey wil l be charged the level that is in effect at the time they apply. MOTION BY SOUKUP, SECOND BY E RICKSON TO APROVE THE 2012 OFFICIAL FEE SCHEDULE SU B- JECT TO KEENEY’S REMARKS ABOUT TERMINOLOGY CHANGE . VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Souku p. The motion carried. Consider Approval of Resolution 11 - 150 Authorizing the Purchase of a Tractor, Front Mount Snow Blower and Loader Natural Resources / Facilities and Fleet Manager Friedges described the equipment proposed for pu r chase at the proces s and criteria for analyzing replacement needs. Described bids received and reco m mended the low bid of $65,023.82 plus $1, 750 . 00 for equipment to be a t tached. Comments: Hedberg : Complimented Friedges on the analysis and report. Asked what equipment lif e would have been expected if the equipment were refurbished. Friedges : Replied the tractor would s till have the frame, axles and a number of other components. Would not be a total refur bish to just d o the engine and drive train. Could add 2,500 or 300 0 hours of use to the engine and drive train, but it would still need additional r e pairs. Hedberg : Noted that costs up to half the price of the tractor would be quickly incur red . Will su p port. Soukup : It is in the equipment replacement plan and is neede d. Will support. Erickson : Clarified that the purchase is in the 2012 equipment plan. 7 12 19 11 City Council meeting minutes Friedges : Affirmed. The expenditure will not be until 2012. Due to potential drive train issue, desires to trade it off as soon as possible. Erickson : Asked w here t his piece of equipment will be used for snow removal. Friedges : Replied it will be used for trails along county roads as well as Main Street , Arcadia and Dakota for load ing trucks. Erickson : Will support. Keeney : Queried about the loader and specifics to snow loading and asked if this is a c omparable class of machine to what is being replaced. Friedges : Replied the snow loader is a new function. Noted that the new equipment will have more hors e- power at the PTO and will provide more power to the snow b lower. Keeney : Asked if there are radios in all equipment and whether that is typically replaced when we buy new equipment. Friedges : Replied there are radios in all equipment and they are re - used with new equipment, but this partic u- lar unit has alread y been recycled twice. MOTION BY KEENEY, SECOND BY SOUKUP TO APPROVE RESOLUTION 11 - 150 AUTHORIZING THE REPLACEMENT OF 2000 CASE CX100 TRACTOR AND SNOW BLOWER. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. OTHER BUSIN ESS Community Events Erickson : Offered holiday greetings for the season. Club Prior will host Salsa del Sol on January 5 from 7 – 9 p.m. at no charge to participants . Myser : B irthday greetings to Vanessa Soukup. Asked Meyer to report on Lakefront Da z zle. Meyer : Reported that the Rec reation staff plans and coordinates the event ; p ark maintenance staff provides logistics of set up, lights, Santa delivery, wood for the bonfire, etc. The Employee Council raises funds for the employee recognition event by providing concessions. The Fire D epartment staffs the b o n fire. Mike Peterson manages photos. The Chamber does much to help plan the event and sponsored fireworks. Integra staffs kettle corn and Toys for Tots. Church me m bers ran caroling. Myser : Ex tended holiday greetings. Erickson : M entioned that City offices will be closed on January 2 so the first meeting of year will be Jan u ary 3. Boyles : R elated the days the City will be closed for the Christmas holidays. RECESS Council recessed into exe cutive session at 9:20 p.m. to discuss strategy connected to property acquisition for the CR 21/Arcadia Improvement Project . City Engineer / Inspections Director Poppler listed the prope r ties that were discussed: 16150 Arcadia, 16188 Arcadia, 16196, Arcad ia, 4646 Colorado, 4590 Colorado 4570 Color a- do, 4556 Colorado, 4540 Colorado, 4528 Colorado, 4516 Colorado, and 4500 Colorado. RECONVENE The meeting reconvened at 9:3 4 p.m. Direction was provided to staff on how to proceed. ADJOURNMENT With no furth er comments from Council members, a motion to adjourn was made by H edberg and seconded by S oukup . With all in favor, the meeting adjourned at 9:35 p.m. ___ _______________________________ _______________________________ Frank Boyles, City Manager Charlotte Green, Admin. Assistant 8 12 19 11 City Council meeting minutes