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HomeMy WebLinkAboutItem 06.cCity of Lakeville Council Work Session Minutes November 28, 2011 In attendance: Mayor Mark Bellows Council Member Laurie Rieb Council Member Kerrin Swecker Council Member Matt Little Council Member Colleen LaBeau Staff: Steve Mielke, City Admini� Daryl Morey, Planning Dire Dennis Feller, Finance Dire Mike Meyer, Fire Chief Cindi Joosten, Human Res Judi Hawkins, Deputy City Mayor Bellows called the meeting to order at at 6:05 p.m. ITEM #1 - Lennar Development Lee Johnson, Lennar Corporation has an option to purchase 200a future 185th Street. Lennar form Bros. Constructii tT a been 185th Street i$rpia {ecc resulting i comil r propos 24 and RS -3 sing camrx1 �ial adjacent to CE Ced I venue BRT Corridor. Street a major ec anticipated, evelopmer will be built in develo ncil Member LaBeau arrived Land Develolpr eM Cpprelinator, stated that Lennar from Joe `ill Farm, west of Cedar Avenue at �erated as ©rr ,irtThompson Homes and Lundgren r "Wive builder in the Lakeville area for many years. m *cf ,pin east /west corridor through the city inter§� t t ln. He stated that the concept plan ly and i' ' edium density residential development with ✓enue, which is consistent with guidelines for the oncept plan also proposes the construction of 185tr >t corridor through the city. The commercial is not its time. A greenway corridor along the DNR tributary s amenities. _� Mc Johnson gave tTr 7, - -rview of the storm drainage and water /sanitary sewer accessibility in the a' nd does not believe there will be capacity issues. He is working on obtaining the necessary easements for the extension of trunk sanitary sewer across nearby properties. He believes that the marketing of their project would also attract potential home buyers to residential developments in other areas of the city. He stated that the market needs to dictate development and the City should not be involved with competition. He sees this as an opportunity to spotlight the city in a positive way and believes staff's concerns regarding the premature subdivision criteria can be addressed. He is asking for the Council to provide some guidance and indicate their level of support. City Council Work Session Minutes November 28 , 2011 Page -2- Planning Director Daryl Morey stated that of the 200 acres in the subject property, the north 80 acres are zoned high density and medium -high density residential. The remaining 120 acres lie within a Special Plan Area of the Urban Reserve as identified in the City's 2008 Comprehensive Plan, which means that sanitary sewer is not planned until after the year 2020. The Planning Commission reviewed Lennar's concept plan at their October 20, 2011 work session and some members expressed concern about leapfrog development and that development of this property is premature. There are over 1,000 acres of platted and unplatted developable residential land in the current MUSA, in addition to land located within the Spirit of Brandtjen Farm PUD. In addition, there are properties in Expansion Areas A and B that are waiting to be brought into the current MUSA. Premature subdivision issues that would need to me addressed by the developer include inadequate drainage, water supply; ed miff - highways, waste disposal systems, and City service capacity. The concelot plan iv6uld require a Comprehensive Plan amendment, which must also be dpprbved by the Metropolitan 11 Council. Mr. Morey stated that there are currently abouf 90- vacant plgtfed, residential lots now available in the city. This represents a seven ye{�rspply given the;9Tlrrerit construction rate of approximately 130 single family homes dac�,year, Council Member Swecker asked when the prop niquld be developed, if approved by the City Council. Mr. Johnson said it could:be next summer before the Comprehensive Plan amendment and EA Would bedorxrpiete. War Council Member Rieb questioned Mr Johnson a6bbt his st6te`ment that some of the vacant single family lots in the curt r� hventoM -" re listed-6i 2006 prices. Does this mean the lots in the Lennar de el ment wouR for less? Mr. Johnson stated that the price of the lot is included °eir homes they could conceivably be at lower prices than their epmpetit6 a , Council Mornbet LaBea U qfd staff t�rrak down the inventory of buildable lots by school di 6 §f fi: Mr. Morey resrft ded that #were are 364 vacant single family lots in the I LakevGlM, ool district and tRWprowmately 210 of those have city streets and utilitidS ently available Council M' ber Swecker said, - , — would be interested in seeing what vacant land is available i the Current MUSAzdhed R -2, R -3 or R -4. She asked what the risk to the City �� s is and what theiten cs,are to taxpayers for "leapfrog" development. Council Member Litfk,'T' ed staff to explain how zoning classifications and the MUSA v x staging are determined. Mr. Morey stated that MUSA staging is based on proximity to existing trunk sanitary sewer and an orderly progression of development. Mr. Johnson said Lennar has agreed to construct a reliever pipe to alleviate excessive waste for the existing infrastructure. Little asked if the developer believes it is unfair to change the comprehensive plan for one developer when others have been waiting for their properties to be brought into the MUSA. Mr. Johnson said he sees it as an opportunity for the city. He doesn't believe the City should be the gatekeeper for development but the market should determine what gets built. City Council Work Session Minutes November 28, 2011 Page -3- Mr. Johnson stated that information would be included in Lennar's marketing materials to notify potential buyers of the future commercial development of the property. Mr. Morey addressed Council Member Swecker's question on potential risks to the city. He stated that allowing this development would deviate from the City's long- standing comprehensive growth management policies. There are potential maintenance issue associated with extending trunk sanitary sewer and water lines through property that is not in the current MUSA. If Council decides to pursue this, staff would recommend planning and engineering studies for the entire 1,500 acre Special Plan Area. The estimated $25,000 to $30,000 cost of these studies is not currently budgeted. Mr. Mielke stated he has spoken to several develop growth management should be reconsidered. Trun water pressure zone issues as well as the possible ex Avenue will need to be considered. Mayor Bellows asked if there was anyone in the Council on this item. Matthew Weiland, representing the owner Lennar is a good builder, but that the timin, that are currently not in the MUSA will hav believes the focus should be on finshing tl-, built, stabilizing property values, ari use of MUSA for )acity and �t to Highview ed to address the nelly Forms, believes expansion into areas xn property values. He vhere streets are already Jim Deanovic, the owner of lot �nnelly Farrnsr jle�/es that this development is about a year or tv pt ,mature i �t ille s land use plan states that land will not be brought into tbo M h C� there is Te d ban a five year supply of buildable land. Lennar has ap ortunItiAM' in sev reas that are currently in the MUSA. Mark Z ber stated that from'��t,spring s developer forum he believed the City was trying §r ur development an�t�jis could be just what the city needs to generate excite nd growth. A ne %per article last weekend indicated that the school district is VQOO7 ed about d nrollment. He would support the project. WO 7 Rich Hocking atarney f0Xpraperty owner Joe Miller Farms, stated that Mr. Miller is very much in favor of tC1is projdfi moving forward. He believes the Cedar Avenue corridor will be a signifi in the development of this area along with the extension of 185th Street. This will b # e a phased development by a large builder, which he believes will be beneficial to small builders and buyers in stimulating the market. Council Member Swecker said she would support having the land use and engineering studies completed but is concerned with the cost and is not willing to put this in the 2012 budget. She needs to see how developing the property at this time would benefit the community as a whole. Mr. Johnson said Lennar would pay a percentage of the cost of the studies. City Council Work Session Minutes November 28, 2011 Page -4- Council Member Rieb stated that the City of Lakeville has always approved orderly development and would prefer that policy to continue. She would like more information on cost vs. benefit to the taxpayers before she could make a decision. Council Member LaBeau agreed that the studies should not be a financial burden to the City and that consideration has to be given equally. The comprehensive guide plan was adopted in order for the city to develop in an orderly way. Council Member Little concurs that while government should not be involved in the marketplace and the market has to correct itself; government needs to be predictable and fair to all developers. He believes this is mainly a fairness' ssue and would be a "slippery slope" if the some rules are not applied to everyone. 'council Member LaBeau said in the development industry things are not alwaysdir but tne''City needs to be aware that currently the number of active developersas=limiited. : Council Member Little stated that if every developer kl�feW outside the MUSA less expensively than inside the MUSkrn expensive option. The Council should honor the Cite'' -s adc Council Member Swecker asked how c community as a whole. Mayor Bellows sta,G( that could justify the studies and some benefitsre beir Mr. Mielke stated that if the Cound'Whes to colic recommends authorization of a (q o use study c"( Plan Area /Urban Reserve The eaeering studq_�5 extending anita g rysewer and wdtertrunk lines in a could develQp"land Duld choose the less prehensive Plan. :nt could benefit the of the BRT Corridor i the concept. der the'proposal further, staff amengineering study of the Special 39 uid determine the impacts of non - contiguous fashion, such as the ability to mairttfn Cg2pcttr for thendveloped land to the north that is located within the current l7 ,City rrY j rance as fis�associatecl with extending utilities past undevelQp property, an pudgetvlr acts of the City. Mr. Mielke stated that the entire sage flow area nee�s be studied, including the cost for extending and mamt i p the sanitary sewer s, not just for the subject property. The land use and enginAftstudies are estimate at $25,000 to $30,000 and since funding is not included it e 201 1 or 2012 bdd et, a funding source needs to be identified. After these questo rs pre addressed; fhe development would become a policy issue of openin SA cttea of the city for development. Mr. Morey stated thtdifional properties would need to be included in the land use and engineering studies. The study should include all of Expansion Areas A and B, which are planned for sanitary sewer service prior to the Urban Reserve area. He also pointed out that any study completed in conjunction with a Comprehensive Plan amendment would have to be approved by the Metropolitan Council. Mr. Johnson stated that Lennar chose this property for its location and development potential and the negotiated price of the land was based on the foreclosure amount. Lennar does not wish to proceed with the purchase of the property if the Council is not willing to consider their concept plan, so they are looking for some indication from the City Council Work Session Minutes November 28, 2011 Page -5- Council. If the studies cannot be completed in time to meet the purchase agreement deadline, and no decision will be made until the studies are complete, he could try to restructure the purchase agreement. Council Member Swecker stated that even though the City is very interested in development at this time, there are many property owners who are waiting for their property to be brought into the MUSA for both residential and commercial development. Mr. Morey stated that the land use study would be done first, followed by the engineering study. These studies would be reviewed by the P ~Commission and City Council. Following review, a formal Comprehensive *Plan amendment would be processed. The studies could take three to four monthsao compldtei based on the s number of properties involved. Staff will work with the developer on the scope of the st" a no on and report back to the Council ITEM #2 - Fire Department Administrative Fire Chief Mike Meyer presented an overvt� of opt ions frif4eModeling or relocating fire administration personnel. Chief Meyer h4 revio, prouii e fnformation on space ,1111 issues being faced by the Fire Dept t c at tiffi a space needs analysis has been conducted which suggested thretions to mq *.mize efficiency of the department. gg Option A is to remain status quo In1e current confiiguration at Fire Station #1 . Current space was not in te� t accol tTTpdate fulltime staff, and is being shared with Fire operations Adulliona�l33a hich wj(3 needed in the future will exacerbate the issue. Whether stemains att5 ration or at upper and lower levels will need to be updtt7 including re some cc3r'pet and walls. Optid to relocate Fire adrtfti i tration to the second floor of Station #1. The main advantdg tS that it would stayu ithin the main city campus and the public would not be confused about the locat . on. However, there would not be anyone on the lower level to greet9tteublic and fhl's renovation would require the installation of an elevator. This oor woud,eiminate the training room at Station # 1. Option C would rel6#0 administration to Fire Station #4 and remodel Fire Station # 1. Proposed space at FS #4 is currently used as a garage and staff quarters for ambulance equipment and personnel, which would relocate to the Water Treatment Facility. Fire relief and training officers would stay at FS #4. This option would provide adequate space for additional future staff and would allow the training room to remain on the second floor of FS # 1. Staff is recommending Option C using funds as appropriated in the 2011 Building Fund in addition to funds set aside for retaining wall repair at Station #3. The wall would be delayed until 2014, or when funds are available. Staff recommends retaining Tushie City Council Work Session Minutes November 28, 2011 Page -6- Montgomery for architectural services and Contegrity Group for construction management. Council directed staff to proceed with relocation of fire administration to FS #4 and phase 1 remodeling of FS #I in 2012, as presented. CITIZEN COMMENT: Ron Gerk asked the Council to consider increasing night police patrol staffing. He believes the poor economy is responsible for a higher crime rate in the City. Council members were concerned that they had not been informed of= an,lncdent which occurred on Saturday evening. ITEM #3 - 2012 Budget and Tax Levy Review Finance Director Dennis Feller stated that the topics to be re tewed prior to tine Truth in Taxation Public Hearing on December 5 are the tax levy, budgefodjustments, and budget review and considerations. Mr. Feller revtcr8;budget ma terials that had been provided to Council in his memo dated N 28 2Qt.l . He stated "that three met, residents contacted him after receiving th ax stag t5, two of them requested further information about property values, taxgfe volt f. Due to several factors, i.e., stability -,, usiness vt�lt5es compared to residential values and the market value exclusion the tql n is shif }ing frorri residential to commercial/ industrial properties. Council Membe t Beo toted thpf r �erty taxes on businesses have been increasing t act five r he be�bushesses have reached the limit of taxability 4"' } burden a ' to star g back to the residents. Mr. Feller stated that wwWe residential pro values s� art increasing and are in sync with comrrt ial values, this will ec fie. Mr. Felleffdc htafied budget odLO"' rents and effects on general fund balances. Council members aSC zf the Financehtrector believes a 40% fund balance is adequate. Mr. Feller stated }hat „$fie 40% 01� ncludes contingency funds for increases in wages and benefits which�tsn t this time. Council Member Little questioned the transparency of t s,:od of financing for benefits. Mr. Feller stated that the funds can be taken out of`fihe contingency funds and put in the general fund, which would increase the fund balance to 43 %. Mr. Feller provided a summary of major initiatives. Firefighters are seeking a 3% pension increase. Comparisons to other cities were provided to the Council. Investment performance of the fund is difficult to predict, however, assuming a 5% return on investments, the City's cost would be $39,000 for City Council Work Session Minutes November 28, 2011 Page -7- the requested increase. Council supported the 3% pension increase and raising the levy to $60,000 in 2013. The Fire Dept. will need to ratify this also. A discussion was held on opening ice rinks. Council was asked if they wish to authorize opening one or more additional rinks for the 2012 -13 skating season. Mayor Bellows stated that Highview Heights was a demographic argument because of it being in a different school district. Council Member Rieb asked to see updated demographic figures for all rinks. Council Member Little does not want to arbitrarily open rinks. He suggested leaving discussions open -ended for additional rinks next year and reassess the issue. Council directed staff to budget to leave Highview Heights rink open through the 2011-12 skating season and_repssess next year, based on prioritization by the Parks, Recreation and Natural Resouraes.,Committee. The Personnel Committee will work with Human Res r`ces staf #p pare down the scope of work for the labor market study. Portionst the study need,to be done to make sure that laws are followed and State manddfes, cite being Met., kaBepu does not support this study. Little asked to see fhe scope of work. Swecker suggests partial study being completed or some work being`done,in- house. Mr. Mielke will bring further information before the Council for direction. Mr. Feller discussed additions and changes tp 2012 2016 Capital Improvement Program that will have an effect on the IatTdgef. PraIects will include the Hwy. 50/60 roundabout, Co.Rd. 70 /Dodd Blvd.; KennAR Avenue .Vcllley Park and Clays Acres watermain replacements; and removpf z,� f LiquarSfore lurid acauisition. ITEM #4 - Policy Manual Human Resources Manager CiN&Jmosten had rh th the City Attorney regarding article 3.06, City QputIStaff Reba, and presented Council with alternate anguage C gnpv xC� r ously r S+e ed this item at their October 24th work session. Council dir staff to - r '� p ire the �terrfgr the upcoming Council agenda. Procedures. A discu`sstph had previously be6fteld regarding procedures for the reappointment of members ttn�y advisory bodrdsand commissions. Currently, members whose terms are expiring afj& end of the rjear are notified and asked if they wish to be reappointed orisons, an advisory board or commission member will not be reappointed on theecr mendation of the board chair. Council members suggested a more in -depth evatuvTion or possibly re- interviewing existing members prior to reappointment. Council Member LoBeau also spoke in favor of term limits. Council Members Swecker and Rieb did not support term limits, as they believed that could take away a great deal of historical knowledge from the committees. Swecker stated that she would not be opposed to re- interviewing committee members before reappointing them. Council Member Little added that members can be evaluated or asked to step down at any time. Mr. Mielke suggested that a policy for a formal review process be drafted to evaluate the performance of committee members based on criteria such as attendance, City Council Work Session Minutes November 28, 2011 Page -8- participation, working as a team, etc. Council could then determine on a member -by- member basis whether they wish to re- interview and reappoint. A review process will be established. ITEM #6 - 2012 Council Committees and Inter - Agency Appointments DCC needs an appointee for their board by January 1 st. Council Member Rieb will take Council Member LaBeau's liquor committee appointment; LaBeau will take Little's appointment to the Cedar Improvement Group. The City engineer will be appointed to the 1 -35 Solutions Alliance in place of the City Administrator. ITEM #7 - Other There were no interagency committee /board reports. Mr. Mielke suggested that the December 12th Work Session k4'. wishes to further discuss the budget. Other items pip be put Due to increased public attendance at meetat'c Treatment Facility conference room would Sessions in 2012. The room would lend its pr accommodating a larger audience Coutl wi in 2012. ITEM #8 - Adjourn The meeting Res Judi uty Clerk elled, unless Council January agenda. fisted that the Water n for Council Work vO,conversations while 9 their work session there Mark Bellows,