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HomeMy WebLinkAbout12-05-11CITY OF LAKEVILLE COUNCIL MEETING MINUTES DECEMBER 5, 2011 Mayor Bellows called the meeting to order at 7:00 p.m. The pledge of allegiance to the flag was given. Present: Mayor Mark Bellows Council Member Matt Little Council Member Colleen LaBeau Council Member Kerrin Swecker Council Member Laurie Rieb Also Present: Roger Knutson, City Attorney Steve Mielke, City Administrator Tom Vonhof, Police Chief Zach Johnson, Acting City Engineer David Olson, Community & Economic Development Director Daryl Morey, Planning Director Steve Michaud, Parks & Recreation Director Chris Petree, Operations & Maintenance Director Charlene Friedges, City Clerk Citizens' Comments None Presentations /Introductions Mr. Petree presented the November monthly report of the Operations & Maintenance Department. Consent Agenda 11.79 Motion was made by Rieb, seconded by LaBeau to approve the consent agenda items as follows: a. Claims for payment. b. Minutes of the November 21, 2011 City Council meeting. C. Minutes of the November 10, 2011 special Council meeting. d. Resolution No. 1 1 -132 accepting donations to the Heritage Center. CITY OF LAKEVILLE COUNCIL MEETING MINUTES DECEMBER 5, 2011 Page 2 e. Resolution No. 11-133 vacating easements in Spirit of Brandtjen Farm 8th Addition. Jamesdale Estates preliminary plat extension. g. Resolution No. 11-134 approving Dakota County 2012 Large Community Funding Application. h. Special assessment deferments for Gloria Vandereen (20540 Idalia Avenue), Betty L. Decker (20212 Hunter Court) and Gayle L. Slette (20245 Hunter Court), Improvement Project 11 -02. Amendments to City of Lakeville Policy Manual. j. Resolution No. 11 -135 accepting donation from Midstate Reclamation and Trucking to the Police Department K9 Program. k. Second Amendment to Site Lease Agreement with Sprint Spectrum Realty Company, LP for the Fairfield water tower. Roll call was taken on the motion. Ayes, unanimous. Item 7 - Pelagalli Foods, Inc. On -Sale and Sunday Liquor License Mayor Bellows opened the public hearing on the application of Pelagalli Foods, Inc. for an on -sale and Sunday liquor license at Casa Nostra Pizzeria & Ristorante Italiano, 20198 Heritage Drive. The applicant, Nina Pelagalli, stated her restaurant has been in business since February 2010 and currently has a beer and wine license. She plans to expand her family owned business into the adjacent retail space, adding a small bar area and additional restaurant space, creating a family oriented bar /restaurant setting. Todd Bornhauser, representing the Lakeville Area Chamber of Commerce, spoke in support of the application and expansion of this small, family owned business. 11.80 Motion was made by Rieb, seconded by Little to close the public hearing. Voice vote was taken on the motion. Ayes, unanimous. CITY OF LAKEVILLE COUNCIL MEETING MINUTES DECEMBER 5, 2011 Page 3 11.81 Motion was made by Swecker, seconded by Little to grant an on -sale and Sunday liquor license to Pelagalli Foods, Inc., d.b.a. Casa Nostra Pizzeria & Ristorante Italiano, 20198 Heritage Drive, effective January 1, 2012. Roll call was taken on the motion. Ayes, unanimous. Item 8 - Truth in Taxation Public Hearing Mayor Bellows opened the Truth in Taxation public hearing. Finance Director Dennis Feller presented the 2012 budget and tax levy. He explained that since the preliminary 2012 budget and tax levy were approved in September, the City Council has been able to reduce the tax levy by $249,610. Mr. Feller pointed out that even though residential property taxes are declining, taxes on business properties are increasing when compared to 2011. He stated that there are four primary reasons for the tax increase on business properties. First, the majority of residential properties are declining while business properties are relatively stable. Since property values are used to determine each property owner's pro rata share of the total levy, this means business will end up paying more. Secondly, the State of Minnesota replaced the Market Value Homestead Credit program with the Market Value Exclusion program. The third reason for the tax increase is due to the increase in fiscal disparities and, finally, the increase in the State property tax on business. Mr. Feller stated the 2012 General Fund balance is projected to be $9,117,498, which is 44% of expenditures and within the City's fund balance policy guidelines. Mayor Bellows opened the hearing to questions and comments. At the request of Council Member Swecker, Mr. Feller provided a breakdown of taxes to the various taxing entities. For residential property, 40% goes to the school districts, 31 % to the city and 25% to the county. For commercial /industrial property, almost 60% goes to the state for fiscal disparities and state taxes, while only 13% goes to the city. Council Member LaBeau commented on the appraised value of commercial property in relation to the market value that is placed on that property by the county assessor. CITY OF LAKEVILLE COUNCIL MEETING MINUTES DECEMBER 5, 2011 Page 4 Russell Olson, 12150 — 21 0th Street W., stated he felt that since his property value has been reduced, his property taxes should be reduced accordingly. Mr. Feller explained to Mr. Olson that his truth in taxation statement shows a reduction in the taxable market value, not the property value. 11.82 Motion was made by Rieb, seconded by Little to close the truth in taxation public hearing. Roll call was taken on the motion. Ayes, unanimous. Item 9 - 2012 Street Reconstruction Project Mr. Petree provided a brief overview of the 2012 street reconstruction project, which includes portions of Cedar Highlands, Dodd Park, Donnay's College Park, Donnay's Valley Park and properties along Gerdine Path between 170th Street W. and Dodd Boulevard. The estimated cost for the 2012 street reconstruction project is $8,636,000. The project is proposed to be funded utilizing City utility funds (approximately $1.2 million) and issuance of debt in the amount of $4.4 million. Approximately $2.96 million will be assessed to the benefiting property owners. Monica Heil of WSB Engineering explained that the initial Capital Improvement Plan assumed water main replacement costing approximately $270,000. However, numerous water main breaks in the project area resulting from corrosive soils caused the estimated cost for replacement to increase to $1.236 million. Water main replacement is financed from the City's Utility Operating Fund. The City Council is being asked to set a public hearing to be held on January 3, 2012. Council Members Little and LaBeau questioned the use of PVC (plastic) pipe. Mr. Petree explained that PVC pipe meets all of the American Water Works Association standards and works well in areas with corrosive soils. It is now relatively the same price or less expensive than iron pipe. Council Member Swecker questioned the project time frame, given the fact that this is a very large project. Mr. Petree stated staff is confident that, with a phased approach and the right contractor, the project can be completed on schedule. CITY OF LAKEVILLE COUNCIL MEETING MINUTES DECEMBER 5, 201 1 Page 5 11.83 Motion was made by Swecker, seconded by Rieb to approve Resolution No. 1 1 -136 approving feasibility report and calling public hearing for the 2012 street reconstruction project, Improvement Project 12 -02. Roll call was taken on the motion. Aye, unanimous. Item 10 - Electrical Inspection Services Agreement with Steven Kletschka Mr. Olson presented an agreement for electrical inspection services with Steven Kletschka. The agreement proposes that Mr. Kletschka receive 80% of the electrical permit fees. He is required to furnish evidence of general liability and workers compensation insurance. The proposed agreement is for a one year term and shall automatically be renewed for successive one year terms unless either party cancels. Mr. Olson pointed out that the City will save approximately $31,000 in 2012 as a result of eliminating the electrical inspector position and contracting for this service. Council Member Swecker asked who sets the permit fees. Mr. Olson stated the city establishes permit fees. He pointed out that the City's current electrical permit fees are lower than what the state charges; and the City's 2012 budget does not anticipate an increase. Council Member Little asked about the potential difference in service levels with a contractual arrangement versus a full -time inspector employed by the City. Mr. Olson stated Mr. Kletschka has indicated that he will take inspection requests during the entire day. If not same day, next day inspections should always be available. In response to Council Member Little's question, Mr. Olson stated residents and contractors should still direct any concerns or questions to the City's Building Official. Council Member Little stated he is opposed to laying off a City employee and contracting electrical inspection services. He felt that the estimated cost savings of $31,000 does not take into account the revenue for electrical inspection fees. He also felt that this contractual service represents a shift in costs to the citizens and businesses. It is also, he stated, a public safety issue because, like police and fire, electrical inspections are necessary to prevent harm to citizens. 11.84 Motion was made by LaBeau, seconded by Swecker to approve an agreement for electrical inspection services with Steven Kletschka. CITY OF LAKEVILLE COUNCIL MEETING MINUTES DECEMBER 5, 2011 Page 6 Roll call was taken on the motion. Ayes, LaBeau, Rieb, Swecker, Bellows. Nay, Little. Unfinished business None New business None Announcements - Next regular Council meeting, December 19, 2011 Mayor Bellows adjourned the meeting at 8:06 p.m. Respectfully submitted, Charlene Friedges, JiAy Clerk Mark Bellows, Mayor