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HomeMy WebLinkAbout01-23-12 WSMinutes Lakeville City Council Work Session January 23, 2012 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 Administrator Dennis Feller, Finance Director Dave Olson, Community and Economic Development Director Daryl Morey, Planning Director Steve Michaud, Parks and Recreation Director John Hennen, Parks Superintendent Chris Petree, Public Works Director Sue Palm, Communications Manager Judi Hawkins, Deputy City Clerk The meeting was called to order at 5:00 p.m. Citizen Comments: None ITEM # 1 - Cable TV Franchise Update Sue Palm introduced Cable TV Board Chair Robin Selvig. Ms. Selvig has been a member of the Cable TV and former Telecommunications boards since 1990 and was involved in the negotiation process for the last franchise renewal with Charter. Cable TV Board member Mike Reardon was also in attendance. Ms. Selvig introduced the City's cable franchise legal counsel, Brian Grogan of Moss and Barnett. Costs associated with the renewal process will be funded with franchise fees. Brian Grogan provided an overview of the franchise renewal process. Several rules are in place for the process, which begins three years before the franchise expiration. Charter has begun the process by notifying the City that they wish to renew their contract. Mr. Grogan described two process options - formal and informal. The formal process involves a set of deadlines both sides must meet while the informal allows greater latitude to both sides in negotiations. The next step is to determine the objectives and needs of the City. Areas of assessment could include improvements to customer service, local channels selection, school district needs, and financing for improvements to equipment. Some of the options include: City Council Work Session Minutes January 23, 2012 Page -2- • Conduct a technology audit to make sure the system complies with safety codes; • Conduct a Franchise fee audit to determine whether the City was compensated appropriately in the prior franchise; • Do a Subscriber survey, written, by phone, or via the Internet, to determine what the customers want, and • Review Public Educational Government Programming (PEG): This refers to channels such as the Lakeville government channels (16) and the educational channel (22). The City of Lakeville does not currently have a requirement for a public channel, but could potentially see the need in the next few years. Grogan clarified that the current franchise agreement requires two channels that are required for government and educational purposes; there is also a requirement for a regional access channel. The current contract does not require Charter to provide a public access channel - it exists at Charter's discretion. Council Member Swecker asked when the last technology audit or review had been done. Mr. Grogan stated that in the last 15 years that he has been working with the City, there has not been one, but believes an audit was conducted at the time of the last franchise renewal in 1996. Mr. Grogan recommends bringing in an outside expert for this audit. Swecker asked if Charter's customer service department does their own internal survey and if those results are available for review. Mr. Grogan stated that although Charter is required by law to maintain a log there are not likely to be many written comments. A subscriber survey conducted by the City would target pricing issues, installations, and programming issues. The estimated to cost for a scientifically accurate survey is between $5,000 and $10,000. A public hearing could also be held to poll customers, although this is most likely to attract unsatisfied customers. Ms. Palm stated that most customers' complaints concern billing and service issues; these are handled by Charter and the City is not involved. Grogan suggested Council consider using an outside source to conduct the assessment for the PEG channels. The report would help plan for future needs and capacity as well as provide objectivity in negotiating the renewal. He estimates the assessment would cost approximately $ 5,000. Council Member LaBeau asked how often the financial audit should be conducted and if it is common to find errors in payments. Mr. Grogan felt that a financial audit is typically worthwhile and should be conducted every three to five years, since there is a statute of limitations on collecting any shortages. Grogan stated that a technology audit is usually only done at renewal time. Swecker asked if School District 194 contributes to the cost of Channel 22. Palm stated that Channel 22 is included as part of the franchise agreement and the school district is not required to pay for it or receive any of the franchise fees. LaBeau asked about Districts 192 and 196. Palm stated that those school districts are served by the franchise agreements in Apple Valley and Farmington, with the exception of the portion of Farmington that is in ISD 194. City Council Work Session Minutes January 23, 2012 Page -3- Council is being asked by the Cable Board to consider adding a PEG fee in the franchise renewal contract to assist with the cost of future equipment upgrades for public access, education and government channel needs. Grogan pointed out that the City is entitled to collect this fee in return for the cable company using city property for their infrastructure. Most of the surrounding cities do charge a PEG fee. LaBeau thanked the Cable TV Board for this timely information. Swecker stated that before making a recommendation she would like to have a firm cost estimate for the assessment. Council directed staff and Cable Board to prepare a work plan and time line with associated costs and present it to Council at a future work session. ITEM #2 — Heritage Center Review of Revised Plans and Cost Estimates Parks and Recreation Director Steve Michaud opened the agenda item. John Hennen introduced Jody Larson and Joel Dunning from Wold Architects; Earl Pickman, from Contegrity Group, construction manager, and representatives from the three user groups: Senior Center Coordinator Linda Walter, Historical Society president Dianne Lamb, and Yellow Ribbon representatives Sue Palm and Mike Skovran. Mr. Dunning stated that Wold begins every design process by ensuring that they and the client have the same vision for the project's successful outcome. The guiding principles of the Heritage Center project focus on the function, purpose, and intent of the multi - purpose facility. Computer renderings were shown of existing and proposed renovation of each room. The existing 16,772 sq. ft. will not change and existing resources are being reused as much as possible. Each of the three user groups will have access to several multi - purpose rooms including conference rooms, kitchen, dining areas, game rooms and restrooms, while maintaining their own spaces for programming needs. Removal of several interior walls will create larger spaces. Wherever possible, ceilings will be raised to give a more open feeling. The multi - purpose banquet room will seat 176 people. LaBeau asked about the ability to put accordion doors to separate the room from the hallway, instead of stationary walls. Dunning stated that traffic flow and exits need to be maintained to meet fire codes. Swecker asked if the banquet room could be divided into two spaces to accommodate more than one group. Michaud stated that a partition might be a possibility in the future when additional funding is available. Also in the plan is a card room, computer room, library, fitness area, art room, storage space, display rooms in the Historical Society wing, and administrative offices. The kitchen will be available for all three user groups. Vehicle access to the facility will be from Heritage Drive. The Seniors and Historical Society will primarily use the west entrance; handicapped accessibility will be through the east entrance, adjacent to the Yellow Ribbon area. City Council Work Session Minutes January 23, 2012 Page -4- Finance Director Dennis Feller provided itemized financing and revenue sources for the project. The project budget is $1,120,000, consistent with the August and June estimates. The projected funding sources include: Building fund, $377,000; Park Dedication fund, $150,000; Sale of the senior center is estimated to be $155,250 net after returning the original CDGB grant funds to the CDA; Lakeville Senior Organization $100,000 and fundraising activities, $337,750. Previously anticipated CDBG grant funds of $249,750 do not appear to be viable, primarily because of the need to qualify 51% of the facility users must meet low to moderate income requirements as well as Davis Bacon Act requirements for prevailing wages. In previous discussions the option of interim financing for fundraising activities through the park dedication fund was proposed as well as a provision that if the senior center was not sold by the time the contract is awarded, interim financing from the park dedication fund will also be used for that portion of the cost. The Park Dedication fund would then be reimbursed as funds were acquired. This would bring the park dedication fund balance down to $146,000 by the end of 2012. LaBeau asked what the cost would be to leave the current Senior Center vacant. Feller stated that costs would include basic necessary maintenance and security lighting, however, the senior center is being actively marketed. LaBeau believes there is frustration in the community about increasing costs and not having the funding before moving forward with the project. Michaud stated that WAC and SAC charges of $14,000 were unexpected but staff is working with building inspections to get a reduction in the units. Other areas have come down in cost. Fundraising is going well in the community and there have not been any tax dollars used. Several businesses have approached staff with ideas and offers of various fund raising ideas. Feller stated that skilled trades- people are also coming forward with offers to donate labor and equipment which could lower the fundraising needs. Swecker stated that she is comfortable with the project if it adheres to the "not to exceed" amount. LaBeau agrees that it is important to stay on budget, but wonders what will happen if park dedication funds are needed for another project. Michaud expects bids on Heritage Center to be favorable and predicts that when the economy and development recover, revenues will also. LaBeau suggested that if contingency funds remain at the completion of the project they should be saved for future roof repairs or other maintenance. Swecker asked if the CDA TIF funds can be used for this project. Dave Olson stated that because this project falls under the community center category it is not eligible. LaBeau asked about senior citizen dues and thinks the proposed raises seem inequitable. She also believes that projected revenues from rentals are underestimated. City Council Work Session Minutes January 23, 2012 Page -5- Council Member Little asked about directional signage in the building. Michaud stated that it has not been designed yet but there will be a volunteer in the reception area to help direct visitors. Highview Hills would like to provide volunteers for that area. Use policies are being developed for the building. The bid opening is scheduled for March 13, 2012 with September occupancy anticipated. ITEM #3 — Lakeville Policy Manual Review City Administrator Mielke stated that Section 1.3, Public Use of Facilities, is new to the Policy Manual, since it has been practiced but never formally adopted. Swecker asked why the City doesn't charge a fee or require a deposit from outside user groups. Mielke stated that previous Council's did not wish to compete with for - profit facilities such as hotels which are available for the private sector. The WTF conference room is reserved during the daytime for non - profit groups such as the school district, when it is not being used by the City of Lakeville. The room is not available in the evening since there is no staff on duty. Council directed staff to explore options as a possible revenue source. Planning Director Daryl Morey discussed Section 2, Development Project Reviews. The proposed policy is already in practice, including Council's recent decision to eliminate the need for the Planning Commission to review final plats if they are unchanged from the preliminary plat. Swecker suggested a policy to allow for additional neighborhood meetings in the case of a controversial project or one that affects a large number of property owners. She believes that most people's frustration with government is a result of feeling uninformed. Morey stated that it is the City's policy to hold neighborhood meetings at the days and times that residents have said are most convenient. LaBeau suggested that if the assessment amount of a large project is unknown, property owners should be provided with an estimated range. Mielke stated that a O&A template for street construction projects is being developed to adequately provide information to residents on future street reconstruction projects. Section 2 also includes the Business Subsidy Policy, which is unchanged. Public Works Director Chris Petree provided Council with an overview and background information on each of 12 proposed policies in Section 5, Engineering and Public Works. Some of the policies are new and some have been previously approved. Council is being asked to formally adopt these policies, all of which are currently being practiced in the Engineering and Public Works Department. Council directed staff to put these three sections of the Policy Manual on the next regular agenda for consideration. Mielke stated that the next policies Council will be asked to review are Finance, Personnel, and Communications. City Council Work Session Minutes January 23, 2012 ITEM #4 - CDA TIF Project Options Page -6- Community and Economic Development Director Dave Olson stated that the Dakota County Community Development Agency (CDA) had decertified a large Tax Increment Financing (TIF) District at the end of 2010 which included several parcels in Lakeville. Since that time City staff and CDA staff have discussed several possible projects that could be funded with tax increments previously collected within this TIF District. Two possible projects were presented to the Council: Downtown Parking improvements The creation of a publicly owned and /or managed parking lot in the Ben Franklin block was identified as a goal in the City's 2006 Downtown Development Guide. A concept plan for reconstructing the parking lots in this block as well as Pioneer Plaza were developed in 2009 with a planning grant from the CDA. The improvements in this proposed project include acquiring the southern portion of the parking lot currently owned by Hewitt Investments and adding that to a small area of the lot owned by the City in order to square off the property lines and improve the functionality of the overall parking lot. This could be challenging since the Hewitt property has recently gone into foreclosure. The project proposes to replat the area to delineate property boundaries and establish an agreement with the businesses in this block to share in the operating and maintenance costs of the parking lot. The project is contingent on reaching this agreement with the property owners. The estimated cost of this project including property acquisition is $357,000. Council Member Swecker asked why the maintenance agreement would not be part of the entire Special Service District. Mielke stated that the Special Service District covers a much larger area than this and this lot largely benefits the adjoining businesses on this block. DLBA Executive Director Judy Tschumper voiced concern about Despatch Industries often using this lot for their overflow parking. Olson stated that public downtown parking has never been restricted for retail businesses only but realizes that Despatch does use a large number of the spaces. City staff is planning to meet with the new owners of Despatch and will discuss this issue. LaBeau stated that the parking lot between the hockey facility and the post office mall is private and is signed for use by those businesses only. She believes this parking lot project will be an improvement for the downtown parking shortage. Acquisition ofproper1yat8770 - 210 Street. This project includes acquisition, demolition of a vacant duplex, and cleanup of blighted property on the SW corner of 210` Street and Holyoke Avenue. Additional turn lanes are needed at this intersection to improve safety and increase the traffic capacity, particularly for the school district. TIF funds can be used for demolition and clearing but the CDA is verifying if acquisition of the property is an allowed expenditure. Staff is working through Twin Cities Landbank, a non - profit group which assists cities and counties with property acquisitions, in conjunction with the CDA. The estimated total cost of this project is $90,000. City Council Work Session Minutes January 23, 2012 Page -7- LaBeau asked about use of the Economic Development Fund. Olson stated that possibly as a safety net, about $30,000 could be available from this fund. Mielke stated that the purpose of this project is not for redevelopment or rehabilitation but is in response to a specific traffic situation. In the long -range plans the north half of the adjoining residential properties on 210`" Street are guided for commercial development. The EDC will review both projects at their next meeting. Council members asked to receive recommendations from the EDC and one from DLBA regarding the parking improvement project. Council supported pursuing the projects in partnership with the CDA. ITEM #5 — 2012 Legislative Policy Priorities Annually the City's legislative priorities are forwarded to the Minnesota State Legislature in an effort to portray the City's positions on a variety of significant topics and issues. This action communicates those positions to Lakeville's residents, legislators, county and state officials, lobbying organizations and other interested parties. The City's position on broader topics such as finance is represented through membership in organizations such as the MLC. In addition to staffs review and recommendations for 2012, the Lakeville Finance Committee also reviewed the document and recommended minor clarifications. Council discussed two legislative policies outlined in staff's memo: Dan Patch Commuter Rail Corridor. The Legislature may discuss removing the ban on studying the use of this rail line as a commuter line. Lakeville was part of the study group in the early 2000's that came to the conclusion that the Dan Patch commuter rail line was not worthwhile since it would be too expensive to develop and operate. Mielke informed Council that it is possible that freight could begin to be moved along the line again, which would mean active rail traffic instead of parked railcars. A new policy is proposed to the priorities asking Congress to revise railcar storage laws. Council did not recommend any changes to the language. Election of Metropolitan Council Members Members of the Metropolitan Council are appointed by and serve at the pleasure of the Governor. Lakeville's Legislative Policy recommends that local governments and other stakeholders be allowed to offer input on the selection of the 17 members. The legislature will likely discuss the role of the Met Council regarding transit, or if that responsibility should go to the TAB. Council Member Little stated that the 1 -35 Solutions Alliance group also discussed having at least some of the 17 members elected rather than appointed. Council members agreed with election of Met Council members but were not optimistic that the process would change. Little asked if a policy position could be considered to allow exemptions or deferrals on special assessment laws for low income property owners, in addition to the senior deferral. Mielke stated that there are two guidelines now which are age and income. City Council Work Session Minutes January 23, 2012 Page -8- These are based on a state mandate, not a City policy. Staff will look into what the LMC has encountered in this area. LaBeau asked if there was possible reform on fiscal disparities. Results of a study should be coming out shortly but staff believes that taxes would go up for both residents and businesses without fiscal disparities. Mielke recommended waiting to see the results. LaBeau also asked about the impact of wine in grocery legislation on Lakeville. Council directed staff to put the document on the next regular agenda for consideration so it can be forwarded to the representatives. ITEM #b - Other a. Advisory Board and Commission Reappointment Applications Council previously modified the terms of office for advisory committee members to expire on March 31 Term limits and the reappointment process were discussed previously and the decision was made not to re- interview current members whose terms are expiring. Staff surveyed several other communities regarding processes and requirements for reappointments. Discussions were held with department directors who assessed their committee members' performance. Each committee's attendance was also collected. Council believes that attendance requirements could be addressed by reminding committee members that absences will be noted and taken into consideration for reappointment, with the exception of excused absences. Council asked staff to solicit input from board chairs regarding any members they feel should be re- evaluated. Vacancies will be advertised for two three -year terms, one on the Arts Center Board and one on the Planning Commission. The EDC does not wish to fill the Alternate position since they believe the EDC issues are long -term, continuing discussions. Two blocks of time have been reserved for Council interviews. b. Citizen Comment Cards and Mayor Instructions Council had previously directed staff to draft a Citizen Comment card to be used at regular meetings and public hearings. People who wish to address the Council would complete a card prior to the meeting and submit it to the City Clerk, who then passes it to the Mayor. The objectives are for the Mayor to know what agenda item the speaker will focus on and to have a record of the citizen's name and address in order to respond more efficiently. LaBeau asked if time would be allowed for people to fill out the cards after the meeting started, following the Mayor's instructions. Swecker suggested the cards be attached to the agendas at the entrance and picked up when people come in. Mayor Bellows thinks it feels cumbersome and makes the Council seem unapproachable; he is uncertain of the benefits. Rieb believes the cards would make the meeting more orderly and would help Council understand speakers' comments. City Council Work Session Minutes January 23, 2012 Page -9- Swecker added that it might be more orderly if people would only speak once, or if the same questions were not repeated, especially in the case of a large or controversial meeting. Mielke discussed logistics of the card system and guidelines that are used by other cities. Introductory comments by the Mayor might be most beneficial in maintaining decorum. Staff would prefer if all questions on the same topic were asked and addressed together. LaBeau suggested that if additional information was made available in advance, there might be fewer questions and comments from citizens. Council decided to delay enacting the speaker cards at this time. The Mayor will work on revised wording for the instructions. Other: LaBeau asked if developers could be updated on the next action plan as a result of the forum, and if there is a follow up coming on the employees' suggestions. Staff is preparing an update developers' to be sent on the list serv, and will concentrate on the employee suggestions now that the budget process is complete. ITEM #7 — Adjourn The meeting adjourned at 8:50 p.m. Respectfully submitted, Ju i Hawkins De uty Clerk Mark Bellows Mayor