HomeMy WebLinkAbout10-24-11 WSMinutes
Lakeville City Council Work Session
October 24, 2011
In attendance: Mayor Mark Bellows
Council Member Kerrin Swecker
Council Member Matt Little
Council Member Colleen LaBeau
Absent: Council Member Laurie Rieb
Staff: Steve Mielke, City Administrator
Dennis Feller, Finance Director
Tom Nesseth, Senior Accountant
Dave Olson, Community and Economic Development Director
Steve Michaud, Parks and Recreation Director
Chris Petree, Director of Operations and Maintenance
Judi Hawkins, Deputy City Clerk
The meeting was called to order at 6:00 pm
ITEM #1 — 2012 -13 Budget Issues
Finance Director Dennis Feller reviewed the preliminary 2012 tax levy; subsequent
adjustments; major initiatives; and other considerations. Mr. Feller stated that the
adopted preliminary levy, after accounting for the reduction of the Market Value
Homestead Credit levy, is $23,376,000, an increase of $127,000, or .06 %.
Several adjustments have occurred since the preliminary budget was adopted in
September that will result in a reduction of $206,000 from the 2012 adopted
preliminary tax levy and a reduction of $187,000 in the 2013 estimated tax levy.
Revenue adjustments included an increase in the City's police and fire aid as a result
of the 2010 census; several staff positions which were not immediately filled; and a
reduction in the contingency fund due to health insurance premiums. The fund
balance in 2012 remains at 42% and will be at 40% of expenditures in 2013. Overall
this results in a $78,745 or .03% decrease.
Council Member LaBeau questioned several line items in the Human Resources
budget, including wages and benefits, electrical inspector costs, and health insurance.
Mr. Feller explained that the electrical inspector proposed costs for 2012 would be for
unemployment. There is an estimated $30,000 cost for proceeding with the visioning
process for the City. Council members discussed combining this cost with the cost of
a community survey.
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October 24, 2011
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Council Member Little asked if the residents who were in attendance to discuss the ice
rinks could be accommodated and moved forward in the budget discussions. The
consensus of the Council was to accommodate the suggestion.
Staff stated that five of the City's 11 rink sites were closed in 2009, saving
approximately $35,000 annually. The Parks, Recreation and Natural Resources Board
recommended which rinks to close based upon an analysis of the sites performed by
the Parks and Recreation Department. Residents from the Highview Heights Park
neighborhood have been asking for that rink to be reopened this year. There is an
operating cost of approximately $7,000 per rink per season, most of which is for
preparations before skating begins. Because of this, most of the expenditure for this
winter season would come from the 2011 budget. The unbudgeted expenses could be
allocated from the contingency fund.
Mayor Bellows asked what constitutes the service areas for neighborhood parks .
Parks Director Steve Michaud stated that Lakeville's park plan follows national
standards of one -half to three - quarters of a mile distance between neighborhood
parks. Bellows believes the demographics of the school boundaries need to be
considered; this neighborhood is in the Apple Valley High School area and students
want to identify with their own neighborhood rink. He wants to ensure that all the
residents in the city are served equally.
Mr. Michaud stated that the hydrology at the Highview Heights rink site makes ice -
building difficult, which was one of the deciding factors in closing this particular rink.
However, he believes with some additional maintenance it would be possible to
prepare the rink for flooding this winter. Council Member LaBeau stated that their
construction company uses glass rock to assist with drainage. She asked about using
volunteers to staff the warming houses. Mr. Michaud stated that they attempted to use
volunteer attendants a few years ago, but for several reasons, including liability and
training issues, the program was not successful. He would not recommend reopening
all of the rinks, in particular Bunker Hill, since Parkview rink is nearby.
Council Member Swecker suggested reopening Highview Heights and one or two
other rinks this year, then decide at the end of the skating season if they should stay
open next year. Council Member LaBeau would support this.
Council Member Little believes that it would be unfair to reopen one rink and not the
others and would like to reopen all the closed rinks. He disagrees with the previous
Council's decision to close the rinks and believes this neighborhood has demonstrated
their desire to get the Highview Heights rink reopened. He suggested a phased
approach, reopening one or two rinks this year and adding more next year.
Mark Ketterer, 10560 — 166 Street, asked if there could be a rotation on closing rinks
so different rinks could be open every year. His family lives near Rolling Oaks Park
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October 24, 2011
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and they would like that rink reopened. Emily Ketterer stated that with the paved rink
and permanent warming house, it should be less costly to open than some of the
others with rental warming houses.
Patti McDonald, 20094 Kenwood Trail, asked if the rinks are being used by the LHA
and how much their organization contributes to the rinks. She added that the LHA has
now taken over the Lions' pull -tab operations and suggested they contribute some of
their profits. Mr. Michaud will contact the LHA to see if they are willing to use some of
their proceeds for Park rinks.
Tony Moore, 16257 Havelock Way, asked what percentage of the parks budget the
rinks would constitute. Mr. Michaud stated the percentage is small but the park budget
encompasses many areas. Mr. Moore asked if there is another area to cut in order to
reallocate those funds.
Mr. Mielke suggested that Council refer the rink issue to the Parks, Recreation and
Natural Resources Board for a review of the rink locations and a recommendation on
prioritization of rinks. The 2012 budget assumes the current number of rinks will
remain open, however, a rotating schedule could be an option. If Highview Heights
rink is reopened, other neighborhoods will likely ask to reopen additional rinks. Some
funding should be allocated in the 2012 budget for this potential. The Parks board
should conduct a thorough evaluation of the rinks for the 2012 -13 season and make a
recommendation to Council.
Council directed staff to prepare Highview Heights rink to be reopened for the 2011 -12
skating season with the use of General Fund contingency funds. In addition, Council
asked the Parks, Recreation and Natural Resources Committee to review the ice rink
budget and provide recommendations at the November work session on 1) whether to
allow a second closed rink to be reopened this year, and 2) which rinks should be
opened for the 2012 -13 skating season. The Council will determine which rinks are to
be budgeted to be open in the 2012 -13 season.
Discussions regarding major initiatives resumed. Funding for the community visioning
process and the community survey is proposed to be from the communications
budget. The Chamber Government Affairs Committee is in support of the visioning
process. LaBeau asked if the franchise fees that go into the communications budget
could be put in the general fund for other uses. She stated the Minnesota School of
Business is attempting to survey all of the Chamber businesses in the area and
prefers the results of that survey be used.
Council Member Swecker stated that she believes the survey is valuable in
determining what people support and her decisions are largely based on the results.
Swecker would like to consider conducting either the visioning process or the
community survey, but not both. Bellows stated he would choose the visioning
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October 24, 2011
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process over the community survey, since the MN School of Business will contribute
their results.
Chamber of Commerce Executive Director Todd Bornhauser was present and stated
that the MN School of Business will survey approximately 60 businesses. Though it is
beneficial, the survey is not statistically valid and Council might not want to make
decisions based on those results.
Mr. Mielke believes the visioning process is more beneficial than the survey at this
time. LaBeau proposed a $25,000 cap for both. Council Member Little asked for
clarification on what the visioning would involve. Mr. Mielke explained the visioning
survey would ask residents to describe their long term "vision" for the city as it
continues to grow and develop. The process would look at future land use, amenities,
transportation, infrastructure, housing stock, etc., and would assist the City in
managing growth and setting priorities. Swecker believes if residents are given the
opportunity to express their concerns, Council is better able to prioritize. Development
of a strategic action plan would follow
Council directed staff to develop a scope of work to complete the community visioning
process including a citizen survey in 2012 with a budget of $30,000.
Membership in the Greater MSP initiative was discussed. The EDC is not
recommending joining at this time. Little feels it would benefit the City of Lakeville and
should still be considered. Mr. Mielke stated that the MSP markets the entire region
while the EDC is working on a marketing plan exclusive to Lakeville. Little feels the
EDC's marketing survey would compliment the Greater MSP. Other Council members
did not support joining Greater MSP at this time. Little asked to have this membership
reconsidered at a later date. Council requested the $25,000 for Greater MSP
membership be removed from the budget and asked that the EDC's marketing efforts
be funded by the communications budget.
Mr. Feller continued to review the budget. LaBeau asked about the significance of the
Human Resources market study. Mr. Mielke explained that the study looks at each of
the positions and whether wages and comparability are competitive in the
marketplace. Laws that govern public employees are different than the private sector.
The City needs to follow state mandates and comply with pay equity. Resident Patti
McDonald asked if it is for the City's protection. Mielke stated that the City needs to
ensure that its compensation system is accurate, competitive, and not biased. The
Personnel Committee will review the scope of services for the wage study and make a
recommendation to City Council.
The communications fund includes $20,000 for planning and consulting fees to
improve meeting room space at City Hall. Staff believes relocating certain
departments and reconfiguring space would result in a more conducive meeting area.
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October 24, 2011 Page -5-
Council members believe that planning can be done in -house and asked that the
$20,000 expense be removed from the budget.
Steve Michaud presented a request for replacement of the Parks showmobile, which is
used as a stage for Pan- O -Prog events, other special events, concerts, etc. The
current unit is old and is experiencing maintenance problems. Michaud has been
unsuccessful in finding another agency to jointly purchase a new model. He has also
tried to find a second -hand showmobile but has not located a unit in good condition.
There might be a revenue opportunity in renting the unit out. Council members
believed the return on investment (ROI) would be low. Mayor Bellows suggested the
Parks Dept. could get by with the current unit for another year Little would like
additional information on actual costs including overtime and estimated ROI to be
factored in and brought forward to the November work session. Other Council
members concurred.
Council discussed whether to move forward with Phase II of the Liquor Study. This
phase would make recommendations on whether to purchase property for another
store, and if so, the location for that store. Council directed staff to conduct the
analysis in- house.
ITEM #2 — Feasibility Report —185 Street Trail
As part of the scheduled intersection improvements at CSAH 50 and 185 Street, the
existing off - street trail on 185 Street will be relocated. There is a gap in off - street trail
improvements between Jasper Path and Ipava Avenue. Parks Director Steve Michaud
is asking that the extension of this 8 -foot trail to Ipava Avenue be added to the 2014
budget. Currently the section of trail from Jasper Way to Ipava Avenue is a paved
shoulder. Staff believes a new trail extension will enhance pedestrian safety. WSB &
Associates have prepared a feasibility report which details the proposed project.
Construction costs of the project will be approximately $275,000, of which the City
would pay 45% and Dakota County would pay 55 %. There are no long -range plans
for 185 Street improvements so the trail extension would be done independently of a
roadway project. LaBeau asked about the cost of maintenance for the trail system.
Michaud stated that there are ongoing as well as long -term expenses so it is difficult to
calculate an annual expense. There have been discussions with Dakota County about
them contributing to the maintenance expenses.
Council directed staff to include this trail extension in the 2014 budget.
ITEM #3 — Policy Manual Changes
Staff presented proposed changes to the first section of the Lakeville Policy Manual.
City Attorney Roger Knutson had reviewed City policies and recommended several
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October 24, 2011
Page -6-
changes. LaBeau asked how employees are provided with information from the
manual. Staff explained that it is the responsibility of the department directors to
ensure that employees are well informed and familiar with both the policy manual and
pertinent state statutes. Section 3.06 has been added which addresses employees'
role in providing information and explanations to the public. Council Member Little
believes some of the verbiage is confusing and wants employees to know that they
can express their own position when they are not speaking on behalf of the City. Mr.
Mielke will ask the City Attorney to review the paragraph and clarify the language.
Following discussion of other recommended revisions, Council directed staff to make
the suggested changes and prepare the document for Council consideration at a
future meeting.
ITEM #4 — Flagstaff Avenue Traffic Calming Project
Residents along Flagstaff Avenue had approached the City in June with concerns of
speed and safety in their neighborhood. Director of Operations and Maintenance
Chris Petree provided background on traffic calming efforts to date. A neighborhood
meeting held on August 16 was attended by 35 -40 residents. Residents appreciated
efforts by the City, which included narrowing the drive lanes and installing driver
feedback (DFB) signs. Due to lack of an accessible power source, the DFB signs will
need to be solar powered; this will increase the cost of the project from $31,000 to
$40,100. Staff is recommending a phased implementation: Phase 1 will be re- striping
of the roadway to narrow the drive lanes from 12 feet to 10 feet; Phase 2 will include
installation of two solar powered DFB signs. Estimated cost of those two phases is
$22,100. Staff will evaluate these two phases for at least a year and then recommend
whether Phase 3 will be implemented. Phase 3 will consist of two additional solar -
powered DFB signs.
Prior to beginning this project, Council will be asked to consider approval of a DFB
sign policy, which was previously provided in draft format. Funding for Phases 1 and 2
will be from the 2012 Pavement Management CIP, with no cost to the property
owners. Work on Phases 1 and 2 is anticipated to be done early in the summer of
2012. Mr. Petree suggests that Phase 3, if needed, be completed with the 2014
reconstruction of Flagstaff Avenue.
Council directed staff to add the Driver Feedback Sign Policy to a future Council
agenda for consideration and prepare to proceed with Phases 1 and 2. Mr. Petree will
notify the residents.
LaBeau stated there are other areas which may also request DFB signs. Mr. Petree
stated that the policy will set criteria and provide guidance for staff and Council to
make those determinations.
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October 24, 2011 Page -7-
ITEM #5 — Board /Commission Reappointment Procedures and Advisory
Appreciation Event
Council members expressed a desire to delay their discussion of the process for
reappointing board and commission members until the entire Council is present. This
item will be added to the November work session agenda.
It has been suggested that the annual Advisory Appreciation Event be postponed until
February or March so that recognition of outgoing advisory committee members would
coincide with term expirations, which are now March 31. Staff will check with Council
for available dates.
LaBeau asked about the status of the Innovative Awards program. Staff stated that
review of the ideas submitted by staff will resume following the budget process.
Council Member LaBeau would like the Council to conduct an evaluation of the City
Administrator as called for in his employment contract. Council Member Swecker
suggested the evaluation be conducted every other year in January to give new
Council members an opportunity to work with the administrator for a year. LaBeau
stated that would require a change in the employment contract.
ITEM #6 — Other
Interagency Committee /Board Reports:
Council Member Swecker stated that she will be attending the Met Council Land Use
Advisory Committee meeting. There were no other reports.
ITEM #7 — Adjourn
The meeting adjourned at 8:50 p.m.
Respectfully submitted,
J41 Ilawkins
De ty Clerk
Mark Bellows
Mayor