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HomeMy WebLinkAbout01 03 12 City Council minutes 4646 Dakota Street SE Prior Lake, MN 55372 REGULAR CITY COUNCIL MEETING MINUTES January 3 , 201 2 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 Eric kson, City Eng i- neer / In s pections Director Poppler, Community and Economic Development Director Rogness, Public Works/Natural Resources Director Gehler, Water Resources Engineer Bintner, Fire Chief Hartman, Assi s- tant City Manager Kansier, Assistant City Ma nager Meyer and Administrative 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 discussion are restricted to City governmental topics rather than pr i- vate or political agendas. Topics may be addressed at the Public Forum that are on the agenda except those topics that have been o r are the subject of a scheduled public hearing or public information hearing before the City Council, the Economic Development Authority (EDA), Planning Commission, or any other City Advisory Committee. The City Council may discuss but will not take form al action on Public Forum presentations. Matters that are the subject of pending litigation are not appropriate for the Forum. Comments: No person stepped forward to speak. APPROVAL OF AGENDA MOTION BY SOUKUP, S ECOND BY HEDBERG TO APPROVE THE AGEND A AS PRESENTED . VOTE: Ayes by Myser, Erickson , Hedberg, Keeney and Soukup . The motion carried. APPROVAL OF MEETING MINUTES MOTION BY ERICKSON, S ECOND BY KEENEY TO APPROVE THE MINUTES OF THE DECEMBER 19 , 2011 MEETI NG AS PR E SENTED. VOTE: A yes by Myser, Erickson, Hedberg , Keeney and Soukup. The m o tion carried. CONSENT AGENDA City Manager Boyles reviewed the items on the consent agenda. A. Consider Approval of Invoices to be Paid B. Consider Approval of Resolution 12 - 005 Approving a Major Amendment to the Loca l Surface Water Management Plan C. C onsider Approval of Resolution 12 - 001 Authorizing the Mayor and City Manager to Sign Grant Agreement for Section 3 19(h) R esearch and Demonstration Funding for Assessing Iron Enhanced Fi l- tration Trenches MOTION BY KEENEY, SECOND BY SOUKUP TO APPROVE THE CONSENT AGENDA AS PR E- SENTED. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Phone 952.447. 9800 / Fax 952.44 7 . 4245 / www.cityofpriorlake.com PRESENTATION No presentation was scheduled. PUBLIC HEARIN G No public hearing was scheduled. OLD BUSINESS Consider Approval of an Ordinance to Amend or Repeal Chapter 1306, Relating to Special Fire Pr o- tection Systems Community and Economic Development Director Rogness summarized the City’s adoption of Chapter 1306, subpart 2, along with the recent discussion about reasonableness of implementing it in conjunction with economic development and redevelopment. Stated that 41 cities in surrounding counties were su r- veyed and it was learned that 16 of them adopted s ubpart 2, 16 have not adopted 1306, and nine cities adopted subpart 3. Discussed how the International Building Code is applied if Chapter 1306 is not adopted. Provided examples of how the International Building C ode would apply to existing buildings. Comments: Erickson : Stated that Chapter 1306 does not differentiate between the criteria of materials, occupancy, usage, etc. and all of those things should come into play. Will support repeal of Chapter 1306. Keeney : Commented this is a regulation for the benefit of public safety. Would favor changing to subpart 3 since , long - term , the City wants to have a base of buildings that have sprinklers. Believes subpart 3 would be a balance between the burden of r e quiring retrofit and not requiring sprinkler s at all. Hedberg : Stated the City s hould rely on the International Building Code so favors repealing Chapter 1306. Soukup : Commented she o riginally though t subpart 3 would protect; but after discussion in work session and learning about the I nternatio nal Building C ode and considering economic development , will support the repeal of Chapter 1306 in order to keep moving forward and keep the City developable . Myser: Stated his i ssue was to see if there is a public benefit to keep ing the current ordinance s in place. Stated he did not hear evidence to keep either of the subparts and so will support the repeal of Chapter 1306. Noted the City w ill still be abiding by S tate law and the I nternational Building C ode. Noted the City has some older buildings and this will help owners to remodel them . R epeal s hould improve the attra c tion for new businesses if the City has codes that are competitive with neig h bor ing citie s. MOTION BY HEDBERG, SECOND BY SOUKUP TO APPROVE ORDINANCE 112 - 01 REPEALING PART OF THE B UILDING CODE FOR THE CITY; NAMELY, OPTIONAL CHAPTER 1306, SPECIAL FIRE PR O- TECTION SYSTEMS. VOTE: Ayes by Myser, Erickson, Hedberg and Soukup. Nay by Keeney. The motion carried. Consider Approval of a Resolution Authorizing the Negotiated Sale of $9,985 ,000 General Oblig a- tion Cap i tal Improvement Plan Bonds of 2012 Finance Director Erickson reviewed the history of the process undertaken for re - bonding . Steve Mattson of Northland Securities reviewed the analysis of refunding and debt service comparison s tating he a nti c- ipates a $1.2 million savings over the life of the bond after net expenses and negative arbitrage. Discussed a second scenario where the savings could be greater by changing the maturity dates. Comments: Hedberg: Questioned the diff erences in net present value in the two scenarios. Favors the initial scenario that provides more savings earlier in the bond. Soukup: A sked when the funds would be impacted. 2 01 03 2012 City Council Minutes Mattson : Replied t he first year of savings would be in 2012. Since the full a mount of bond repayment has already been le vied, the schedule of savings could be adjusted so the first year is $0 and the savings will be moved to future years. Soukup : Favor s spreading the $70,000 for 2012 to the remainder of the years of the bond. Er ickson : Complimented Mattson and the staff for planning this re - bonding. Concurred with Soukup that the savings for 2012 should be set aside and the savings spread over the remaining years. Keeney : Queried whether this would be the right time to re - bond in the event the market continues to i m- prove . Asked if there would be another callable date before there would be another opportunity to re - bond. Mattson : Affirmed there would be a new callable date and estimated it might be 2020. Believes the current t iming is appropriate . Keeney : Concurred it would be unlikely to regret taking this action. Questioned the cost for re - issuing the new bonds. Mattson : Approximately $150,000. Keeney : Clarified that amount has been included in the net savings. Mattson : Affirmed. Noted that the cost of negative arbitrage has also been calculated into the net savings. Keeney : Would prefer to support the original scenario. Myser : Clarified that Mattson is advising that interest rates will likely not go lower. Asked if the second scenario might push out a call date a little later. Mattson : Replied the City will want the call date to be comfortable for investors and an early call date causes them to be less desirable. The call date will not be established until the bonds go to the market. Will likely re - finance the bonds at some point in the future, but it is more likely that will be in the final eight or ten years of the life of the bond. Myser : Supports the second scenario with a greater net value. Erickson : Sup ports the third scenario proposed to adjust the first year of savings to $0 and spreading the savings over future years. Hedberg : Supports the third scenario also. Keeney: Clarified that the budget did not consider the re - financing in the budgeting proce ss . J. Erickson: The levy includes the existing bonds. Keeney: Commented that the di fference is the ability to have the surplus at the end of the year vs. the payments being locked in for the remainder of the bond. Will support the third scenario. Mat tson: Proposed that the blank in the third paragraph of the proposed resolution be completed with “at least one million dollars . ” Myser : Clarified that it will just delay the first year of savings. Mattson: Affirmed that the first year’s saving of ap proximately $70,000 will be applied to principal in 2012 and reducing that $70,000 later. The total interest savings will be greater due to that. MOTION BY HEDBERG, SECOND BY ERICKSON TO APPROVE RESOLUTION 12 - 002 APPROVING THE ISSUANCE OF GENERAL OBLIG ATION CAPITAL IMPROVEMENT PLA N REFUNDING BONDS, SERIES 2012A, WITH TWO AMENDMENTS: 1) PARAGRAPH 3 SHOULD INDICATE THAT SAVINGS ARE AT LEAST ONE MILLION DOLLARS, AND 2) BOND CONSULTANT SHOULD ARRANGE THAT THE SAVINGS IN 2012 ARE CLOSE TO $0.00. VOTE: Aye s by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. NEW BUSINESS Consider Approval of Annual City Council Appointments to Boards, Commissions and Committees City Manager Boyles reported that the first meeting of the year is considered the annual meeting and i n- cludes appointments of Council members to committees and making necessary amendments to bylaws. Last year there was a comprehensive review of all bylaws to make them consistent between advisory 3 01 03 2012 City Council Minutes committees. Mayor Myser recommended Councilmember Erickson be appointed as the Acting Mayor . Boyles reviewed other proposed appointments. MOTION BY HEDBERG , SECONDED BY SOUKUP TO NOMINATE ERICKSON FOR ACTING MAYOR. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion ca rried. MOTION BY KEENEY , SECONDED BY HEDBERG TO APPROVE THE PRIOR LAKE AMERICAN AS THE OFFICIAL CITY NEWSPAPER. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. MOTION BY SOUKUP , SECONDED BY ERICKSON TO APPROVE STEVE MAT TSON OF NORTHLAND SECURITIES AS FINANCIAL SERVICES PROVIDER FOR 2012 VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. MOTION BY SOUKUP , SECONDED BY HEDBERG TO APPROVE RANDY HOFSTAD AS EMERGENCY MANAGEMENT DIRECTOR FOR 2012 . VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. MOTION BY SOUKUP , SECOND BY K EENEY TO APPROVE DR. MICHAEL WILCOX OF SCOTT COUNTY AS THE CITY’S HEALTH OFFICER FOR 2012. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney an d Soukup. The motion carried. MOTION BY SOUKUP , SECOND BY ERICKSON TO APPROVE RESOLUTION 12 - 003 DESIGNATING INVESTMENT AND BANKING AUTHORITY ON BEHALF OF THE CITY OF PRIOR LAKE . VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion car ried. MOTION BY HEDBERG , SECOND BY SOUKUP TO APPROVE THE REMAINING COUNCIL APPOIN T- MENTS TO BOARDS, COMMISSIONS AND COMMI T TEES AS PRESENTED VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Consider Approval of a Resolutio n Authorizing Execution of the City’s Standardized Professional Services Contract for the Completion of the Pavement Degradation Analysis City Engineer / Inspections Director Poppler reported that during the Capital Improvement Program process in 2011, a d iscussion point was to take pavement management to the next level by performing d e- grad a tion analysis. The analysis w ill use pavement ratings from the past five years and the Pavementview Plus program to decide what kind of maintenance is required and whic h streets should be reconstructed. Quotes have been solicited from consulting firms to fulfill the pavement degradation analysis. Described bids r e ceived. Comments: Soukup : Stated it will be good for the City to have an opportunity with a new vendor. Hedberg : A sked if staff will acquire skills to use the program and be able to do the analysis in the future. Poppler : Replied that the City owns the program and the intent is to take the data fr o m the consultant and build upon it in the future. Staff w orkload would have to be considered to determine if it could ever be done in - house. Keeney : A sked if the City will receive a summary of the results and whether the results might lead to a change in the planned reconstruction schedule . Poppler : Replied th at the end r eport will predict what streets need to be reconstructed in the future and whether strategic overlay s or sealcoat s may be a better value than reconstruction. 4 01 03 2012 City Council Minutes Keeney : Asked if this will this help understand the long - term costs in maintaining st reet infrastructure. Poppler : Responded the City c urrently reconstructs about one roadway mile per year out of the appro x- imately 100 miles of streets in the City . This analysis will help decide if we must change the funding level for the future or whet h e r we are already falling behind. Erickson : Stated this action will help us make the right decisions and adopt the best practices . Emph a- sized that the low bid is less than 50% of the next lowest bid and approximately a third of the high bid. Myser : Asked when the results of this work will be received. Poppler: Replied the g oal is to have it done before the CIP planning process in April. Noted that a work session to recei ve the report is scheduled for A pril. MOTION BY KEENEY, SECOND BY SOUKUP TO APPROVE RESOLUTION 12 - 00 4 AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY’S STANDARDIZED PROFESSIONAL SERVI C- ES CONTRACT FOR PAVEMENT DEGRAD A TION ANALYSIS. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Consider Appro val of a Report with Respect to a Fee to Trust Application for 23 Acres of Land wit h- in Prior Lake City Manager Boyles related that the Shakopee Mdewakanton Sioux Community ( SMSC ) owns 569 acres in fee title and 935 acres in trust within the City . Explaine d that m oving land from fee to trust can only be done through application to the Bureau of Indian Affairs and there is a current request to move an additio n- al 23 acres into trust . Described the properties for which trust status is currently being applied for. Stated that trust status m eans the property remains intact and kept by the SMSC and they are responsible for pr o- viding services to the property. Su ch p roperty would no longer be in the City’s zoning purview, the City may have limited services to pro vide and property taxes will no longer be received . The City is asked if it wishes to comment about placement of the property into trust. Boyles r eviewed the letter drafted by staff which could serve as a potential co m ment . Comments: Keeney: Stated t he letter is fairly detailed and summarizes input from the Council. Believes it is important to build a relationship with the SMSC and it would be i mportant to task a subcommittee or someone to a c- tively work on that. It is as important as any effort the City is implementing. Agree s with the tone of the le t- ter as it does not speci f ically recommend for or against the trust application, but rather provides information on the impact to the City. Erickson: Stated t his is an opportunity to take steps toward s communication between SMSC and the City. Believes it should start on the staff level and recommends directing the City Manager to be the contact with the SMSC and set up the terms of a relationship committee to work on services, infrastructure, etc. Ho w that would be achieved could be left up to them. Recommends not sending the comment letter to the BIA as the amount of property in Prior Lake is not g o ing to greatly impact taxes. Soukup: Understands that the SMSC wants to put the land into trust, but the City will lose property taxes. SMSC has contributed money and services to the City in many ways over many years. Stated that the SMSC and the City are neighbors and partners and the City should concentrate on that and move forward in that manner. B eliev es staff representatives should meet regularly. Does not believe sending the le t ter to the BIA will be beneficial, but sending it to the SMSC to identify the impact on the City would be good. Hedberg : Believes establishment of a joint planning counci l would be important. The draft letter outlines communication, coordination and collaboration in planning activities. Understands there have been info r- mal discussions at the staff level about forming such a council between City and SMSC staff. Believes the City Manager should be directed to pursue such discussion. Does not oppose sending the letter to SMSC, but would want to revise section three about property tax potential as he does not concur with the assum p- tions to generate taxes ; and it does not ad dress the costs of development of providing services to the pro p- 5 01 03 2012 City Council Minutes erties. Suggested that Section 4b be the foundation of direction to C ity staff. Does not support sending the letter to the BIA and would have to be modified to send to SMSC. Myser : Stated the City has some decent working relationships with SMSC on staff levels and interact s with members of SMSC in several areas , but there has not been a relationship with elected officials for several months. Noted that the Council is open to having a rela tionship with them. Commented that the City rec e- ives at - will local government assistance from the SMSC. Understands it is in their best interest to have the land in trust, but such land is removed from tax rolls and the Council has a responsibility to bu ild and grow the City’s economic development . R emoving land from the tax rolls limits our ability to grow our ec o nomic development. Support s establishing a planning council to improve relationships and w ould like to see a member of the Council and a SMSC elected official be part of that. Noted that the proposed comment l e t ter is well - written and states the fact s and potential impact. Not ed he does not hear support from the Council for sending the comment letter . Would support a letter to the SMSC to s upport and encourage develo p ing a working relationship. Keeney : Commented that the property is a key location along CR 42 which will be important long - term e i- ther for the SMSC or other jurisdictions. Believes it is incorrect to view it as undeveloped lan d and it is more correct to consider its long - term potential. Does not believe it will be used as a garden fore v er as it is too critically place d , but other properties might be suitable for such use and discerning that could be the value of the working co uncil. Believes it is important to get the information to the BIA about the future i m- pact on the City a nd the future aggregate value of all of the parcels in trust should be relayed to them. MOTION BY HEDBERG, SECOND BY ERICKSON TO DIRECT STAFF TO ESTA BLISH A MULTIJURI S- DICTIONAL COMMUNICATION, COORDINATION AND COLLABORATION COMMITTEE WITH SMSC. VOTE: Ayes by Myser, Erickson, Hedberg, Keeney and Soukup. The motion carried. Myser: Clarified that the consensus of the Council was to not send the lette r to the SMSC. OTHER BUSINESS Community Events Erickson: Salsa del Soul will be playing at Club Prior on Thursday night. Keeney: Commented that the Community Safety Advisory Committee requested a change of bylaws to a l- low addition of a student or you th advisory member. Suggested it be cons i dered. Myser: Stated that the City, in partnership with Integra Telecom is providing free WiFi access to the pu b lic in City Hall. Erickson: Noted that the n ext Council meeting will be on a Tuesday due to the Dr. Martin Luther King ho l- iday. ADJOURNMENT With no further comments from Council members, a motion to adjourn was made by Soukup and seconded by Keeney . With all in favor, the meeting adjourned at 8:29 p.m. ___ _______________________________ ______ __________________________ Frank Boyles, City Manager Charlotte Green, Admin. Assistant 6 01 03 2012 City Council Minutes