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HomeMy WebLinkAboutItem 06.cMinutes Lakeville City Council Work Session February 27, 2012 In attendance: Council Member Laurie Rieb Council Member Kerrin Swecker Council Member Matt Little Council Member Colleen LaBeaL, Absent: Staff: The meeting was callec There were no Citizen ( ITEM # 1 — Park Dedici Parks and Recreation ;D Licht of The Planning t develooerfiled a orotes 1 1Ti Due Mr. Licht w year system plan update. Mr. h stated that historically Lakeville compared to cities of match the higher Ian City is being asked to that valu ig with Dan e. Recently a '.he protest. ie economy 3s asked to look at the park dedication fees as part of the 5- ichaud referenced a survey of other communities and ias been in the mid range of park dedication fees ze. Michaud stated that Lakeville never increased fees to the past however now that land prices have dropped, the park dedication fee. Michaud indicated that cities use different methods of determining fees. He stated that the formula needs to reflect the needs of the community. He stated that the Staff has reviewed the Plymouth formula for comparison. And the Staff has reviewed the County Assessor's values for comparison and found wide variations in values. The Staff report includes a formula which ties acreage to people needs approach which the City Attorney has reviewed and agreed to. Staff is asking Council to review and react to the formula proposed in the report. The dedication policy allows for land dedication or a City Council Work Session Minutes February 27, 2012 Page -2- fee in lieu of land. The question is in finding the appropriate land value. He stated that the staff has not yet come to terms with how the land value is established. Michaud indicated that Staff is looking for feedback on the methodology. Michaud stated that the next step is to take the issue to the Park and Rec Committee. To establish value, Michaud stated that some communities do an appraisal of the parcel. Others establish a value based upon the type of development across the whole community. He said some have increased fees, others have not. But the staff is not aware of any cities that have lowered fees. There is legislation being considered by the Legislature to change the park dedication laws. Michaud reviewed the background and history of the Park Development Plan indicating that the plan is intended to be a vision for the system and that the plan will require modifications and revenues beyond park dedication in order to be realized. Future referendums will need to be approved by voters in order to achieve the plan. Michaud stated That needs have grown in the system since the schools have eliminated some of the youth sports programs, such as football. Current low prices might offer an opportunity to purchase land for future park development or athletic complexes. Dan Licht added that State statutes enable cities to require dedication of land, or a cash equivalent in lieu of land, to be used for acquisition and/or development of public parks, recreation, trails, wetlands, or open space. Licht stated that the current park dedication formula needs to be revised to meet the criteria of` new state statutes. The Parks, Trails, and Open Space Update that was completed in 2006 established planned development and complete build -out of the system based on projected population and national standards for park systems. The 2006 update analyzed how much additional land would be required for active and passive recreation purposes to complete the system. The 2007 Parks CIP includes acquisition and development of facilities; however, challenges exist for implementation. sEstablishing land and property tax values for the purpose of calculating cash fees is difficult, since sales transactions do not necessarily represent market values. A park dedication formula should both welcome growth and ensure that new users pay for the additional needs they create. Michaud asked Council for comments or questions on the proposed framework for park dedication requirements, and whether they believe the correct course of action is being followed in determinincl fundinq for the 2007 Park CIP. Council Member Swecker believes it is challenging for developers to find affordable land and develop it. She agrees with the importance of having amenities available for the residents while not over - taxing businesses or developers. She asked if developers are allowed to donate land that they might be buying at a lower cost. Michaud stated that the land dedication requirements need to be within desired park areas and provided examples of parks where combinations of cash and land dedication were used. City Council Work Session Minutes February 27, 2012 Page -3- Council Member Little believes a change in the formula could be requested again in a few years when the economy improves and land values increase. Developers need a predictable, consistent policy, and land value disagreements will impact the projected formula. In response to the suggested community -wide average property appraisal he believes that would be unfair to any properties that are below the average value. He is concerned about using the Metropolitan Council employee averages as they may be disputed. He is concerned that the formula may be unnecessarily complex. Little wants to ensure that park land will be available to complete the system as planned. Council Member LaBeau stated that being in the indusl and she called the report "bogus." She has a hard time Values are "messed up" right now because of short -sale appraisals difficult. At the developers forum it was regc moving ahead with the amount of available land and it park dedication fees. She believes it would be more ap adjoining cities such as Farmington, Eagan, Apple VaIlE than other large cities such as Eden Prairie and Maple C markets. She believes cities and governments have not economy. She indicated that in the end it is the end tax developer. She believes the developer's forum and EDC outside the box, get aggressive and get above other cit her a unique perspective averaging of values. reclosures, making at one way to get Lakeville tore would be to look at e to compare Lakeville to count and Burnsville rather which are in different ted to the downturn in the that pays the costs, not the asking Lakeville to think LaBeau commented that people don't need tot lots anymore because people don't let their kids go to the park by themselves and many have installed their own playground sets in their backyards. She uses the trails and notices that the neighborhood parks are seldom used. She stated that the City needs to create a vision, find out what the community really wants what the community is willing to pay and then be creative. The request to review the fees comes from asking how to get businesses to come to Lakeville rather than going somewhere else. She stated that the school district is funded with bodies moving into the community and the end taxpayers look at one thing, the tax bill as a whole. She stated that there has been a great amount of shifting in the industry and she was excited to see how Lakeville could stand apart from other cities. She believes that the community as a whole do not care about 50% of the park plan any more because times and technology have changed. She does believe the big parks are very important. She stated that when she brings potential homebuyers through the city they ask about the big parks, what the school districts are like and about the road systems. She stated that while trails and parks are very important, people don't want to pay for upkeep on something that is not used greatly. She is very disappointed with the information in the report and believes is it inaccurate for what is trying to be achieved by those at the developer forum and EDC. Council Member Swecker addressed Council Member LaBeau and stated that she had received several phone calls and emails from residents and a developer who is concerned about LaBeau making any comments on the park dedication fee revisions since her father is the developer. And while LaBeau has spoken with the City Attorney and he has indicated that there is not a direct conflict because LaBeau does not do direct business with him but there is a perception of a conflict because he would benefit from a reduction in the fee. His current plat has 37 lots in the development process and more coming City Council Work Session Minutes February 27, 2012 Page -4- through. Lowering the park dedication rate by even 5% would be a financial benefit for his company. La Beau stated that she wishes it wasn't her father because this issue started long before he came. Michaud acknowledged that park dedication fees are a big part of the overall costs incurred by developers. There have been past instances when the City has frozen park dedication fees for future phases of a development; however, the fees have never been lowered. It is important to maintain a balance of what amenities people come to the community for - schools, parks, police, etc. He stated that Council Member LaBeau is correct that park dedication fees are among the the industry Swecker believes that residential fees could be low right to increase fees in the future as the economy and industrial formula is fine. LaBeau reiterated th her since those cities are not Lakeville's competitioi the south metro area makes sense for comparison, comparisons for Woodbury and Maple Grove, grog he could provide south metro comparisons. LaBea Prairie and Plymouth are good comparisons. LaBeau stated that she will defend She stated that she wants people t trail system. She believes that Lake two main roadways f35W and Cec Council Member Rieb asl parks and trails. LaBeau' needed and the focus sh to build the athletic comi to build larger parks that gen The parks system plan the needs of the youtl of the system plan Coi to implement projects and still developers and people in they should reserve the elieves the commercial ons don't make sense to rs, Swecker agreed that ities. Michaud; agreed that she does not believe Eden for Lakeville and wanting to make it right. d in what it takes to make a good park and iportant assets are the location between .)Beau for clarification on what she meant by not wanting naybe the City does need the amount as are projected to be be on a few bigger parks. Rieb stated that it still takes money s, Michaud stated that many years ago a decision was made �d several neighborhoods. Unfortunately, some k were not satisfied and wanted their own. The lack of !d complaints in the past. es an athletic field in each neighborhood park to help meet s programs. Dan Licht stated that as part of the 2012 update III discuss policy issues and anticipated costs. Efforts continue 2005 system plan; however some of the 2005 policies will be revised in the 2012 update. Due to changing demographics, the 2005 document has evolved by increasing park spacing guidelines to a one -mile radius and placing more emphasis on community facilities. The park survey can determine what the residents want and set community priorities. The City can accept parkland or cash for funding development of parks. LaBeau asked if most developers would want to make a land dedication rather than cash. Licht stated that they are more inclined to donate cash since there is a greater opportunity to profit from building a home. LaBeau asked if it was possible for developers to get land City Council Work Session Minutes February 27, 2012 Page -5- credits for parks like wetlands. Michaud stated that the developer would need to buy something that doesn't currently exist. Credits have been provided to developers that will have multiple phases by providing more dedication up front. Council Member Little would like to see the formula kept simple and easy for everyone to understand. Licht and Michaud agreed that developers should be able to easily calculate their fees, while being in compliance with the new statute. Council Member Swecker felt there is some room to move in the amounts on the residential but the commerciaVindustrial fees should stay as they are. Swecker stated that the S4,747 is still at the high end compared to these cities in the south metro cities. Changes will be made as proposed and to the Council for direction. ITEM #2 — Trails Improvement CIP Park Maintenance and Operations Manager John Hennen stated that over 100 miles of paved trails have been constructed in the City of Lakeville in the past 25 years. Almost 25% of those trails are over 20 years of age and another 44% are -10 to 20 years of age. It is important to preserve and maintain this amenity since the trail system is a great asset to the City and much used by residents. The City contracted with WSB to inspect, analyze and review the trail system and determine the overall condition index (OCI) of trails and sidewalks and make recommendations for improvements. WSB also analyzed funding options for long -term maintenance in order to maximize the life of the trails. Park Director Steve Michaud added that WSB's trail and sidewalk assessment was modeled after the City's street pavement assessment, which WSB also completed. Michael Reif, Construction Services Manager for WSB & Associates, stated that he has been working with the Minnesota Dept. of Natural Resources on a similar program. The analysis focused on:, what is important in the system; how are the trails being used; who are the users; what issues are being experienced. A crack or heave in a roadway system is insignificant for a car but can be potentially hazardous for a pedestrian. Expansion and contraction of the pavement and the weight of snow removal equipment can cause distress to the pavement resulting in cracks and breaking up of the asphalt. These issues, or "events," were identified in the analysis. The analysis looked at City's objectives: having a high quality system; extending the life of the pavement; and getting ultimate value for maintenance dollars. Not all trails were constructed to the same standards over the years. In 2005 higher standards for asphalt and base materials were adopted, which increased the life expectance of trails constructed after that time. Mr. Reif displayed examples of various trails within the system to illustrate OCI ratings. Trails with an OCI rating of 30 or less are candidates for major rehabilitation or reconstruction; an OCI between 40 and 60 indicates the need for major preservation and improvement measures; and preventive maintenance activities should be scheduled for all trails with an OCI of 70 or higher. In addition, there are 75 miles of sidewalks in the city, for which the Engineering Dept. is responsible. The 525,000 annual sidewalk maintenance budget includes funds for minor repair and required ADA updates. Other major trail maintenance would be done at the same time as street improvements. City Council Work Session Minutes February 27, 2012 Page -6- WSB has developed a Parks CIP, which is based on current life expectancy of trails. Policy decisions need to be made by Council to establish goals for long -term maintenance of the system. Routine maintenance is currently inconsistent as a result of unavailable funding. Deficient trails need to be scheduled for repair or reconstruction as funding becomes available. Tree roots coming through the asphalt is another continuing issue which needs to be addressed. WSB is suggesting developing a Trails CIP and budget. Cost sharing opportunities can be investigated with developers or with other cities through Joint Powers to obtain the best possible price for trail maintenance services. Swecker asked whose responsibility it is to maintain the sidewalks and could they ever be replaced with asphalt. Michaud stated that it is the homeowners" responsibility to maintain sidewalks. Those replacements would be done along with street reconstruction projects. Public Works Director Chris Petree stated that replacement costs are now being partly assessed to adjoining homeowners along with street improvement projects. It was suggested that the maintenance budget be increased to prevent large one-time future costs from draining the budget. Budget recommendations from WSB are based on how many miles are classified in each OCI range, and estimated cost for restoration at each level of disrepair. The lower the OCI rating, the more costly the repair will become. LaBeau asked about reclamation and reconstruction of the trails and possible damage by plowing equipment on the trails. Michaud responded that he has been advised that damage from plowing equipment is less significant than from heavy equipment in the summer because the ground is frozen. LaBeau also asked about standards for width of concrete. Michaud stated that when they are required, 4 -foot sidewalks are built on one side of the street in residential areas and 8 -foot sidewalks are built in commercial areas. Staff reviewed the proposed 2012 to 2016 Capital Improvement Plan for trail projects as prioritized by year. A total fund balance of S 1.3M is currently budgeted for the 5 -year plan; average annual expenditures are proposed to be about $250,000. Finance Director Feller stated that trail improvement options would be discussed as part of the budget process later this year. Projects are subject to change depending on weather conditions or unforeseen situations. The main advantage of the CIP is to eliminate sharp spikes in expenditures over the years. Chris Petree added that trail and sidewalk projects are being bid at the same time as miscellaneous street projects in order to achieve the most favorable prices. There has also been some interest shown in joint powers agreements. Council directed staff to proceed with implementation of the 2012 -2016 CIP Trail Improvement Fund as presented. ITEM #3 — North Creek Hydrological Study Chris Petree stated that over the last few years there have been several rain events that caused Cedar Avenue to overtop and resulted in flooding in the Valley Park area and along the North Creek corridor. One year ago, Lakeville contracted with Barr Engineering to study the North Creek Subwatershed and the Cedar Avenue area and to identify some alternatives to mitigate the flooding in those areas. City Council Work Session Minutes February 27, 2012 Page -7- Interim City Engineer Zach Johnson stated that the goal of flood mitigation is to improve public safety and reduce the risk of property damage. Barr's study concentrated on analyzing several flood mitigation alternatives in response to flooding at Cedar Avenue and Highview Avenue in 2010 and 2011 and established flow and volume standards along North Creek at the city boundary. Representatives from Barr Engineering stated that possible mitigation alternatives include constructing additional culvert capacity to carry rainwater below Cedar Avenue, providing additional floodplain storage along North Creek between Cedar Avenue and Highview Avenue, and modifying the height of Highview Avenue with various amounts of culvert reduction. The goal of this mitigation is to store enough water upstream at Highview Avenue to prevent Cedar Avenue from overtopping without impacting the residents upstream. In summarizing the results, Barr determined that only one of the scenarios would meet all of the desired criteria. That alternative would raise Highview Avenue by approximately seven feet and restrict the existing 5X7 culvert to a 3X3 culvert. This would prevent Highview and Cedar from overtopping and provide benefits downstream. LaBeau asked if Dakota County is participating in the project or costs and why nothing was done about this at the time of the road project. Staff stated that the County has indicated that they would consider cost sharing. They are aware of the situation due to the Vermillion River Watershed being a component of the County. There were no improvements directly related to this as part of the Cedar Avenue study, however, the City made some storm water system improvements as part of the project. LaBeau asked about potential flooding on land between 165`" and 175 and if there would heed to be corrections in order to make it possible to develop. Petree stated that this land has wetland issues and would need drainage corrections to allow development in any case. The landowners are aware of the discussions regarding their property. If Council chooses to pursue mitigation alternatives staff will obtain additional information such as surveys in order to provide accurate cost estimates. Council asked if there were any grants available. Mac Cafferty stated that a grant with the Vermillion JPO funded about half of the North Creek study. The VRWJPO is also considering participation in funding for the project due to water quality and control benefits. The project will be presented to the JPO board and the City will pursue cost sharing with Dakota County. LaBeau asked if any of the existing homes were affected by the new FEMA maps. Johnson stated that he was not aware of any. Swecker asked if any communities downstream would benefit from this project. Johnson stated that no impacts or changes are anticipated in any other communities. ITEM #4.a. Ipava Avenue Pedestrian Crossing Analysis Chris Petree stated that the crossing at Ipava Avenue and 185`" Street at Century Middle School was installed in 2011 as part of a federal aid Safe Routes to School project grant. The current crossing meets the minimum requirements; however, there have been inquiries from residents and the school district about possible improvements. The stopping City Council Work Session Minutes February 27, 2012 sight distance in a 45 -MPH speed zone is required to be a minimum of 360 feet, the current distance is 375 feet, which barely meets the minimum. Additional high visibility signage has been discussed. Other issues are trees in the median and on the east side of the roadway causing sight obstructions; excessive speed for a school zone; and inadequate nighttime lighting in the crosswalk. Council asked about possible pedestrian push- button crossing signs. Petree stated that a total of five electronic signs would be needed for vehicles approaching the intersection from each direction, and that could be cost prohibitive. Council directed staff to bring this item back to improvements and estimated costs. Council member Little asked about the status of D Avenue. Petree stated that that project should be sign installation this summer. Funding for the pro the pavement management fund. ITEM #4.b. Heritage Center Volunteer Steve Michaud updated the Council on tP savings opportunity by using a group of needs to be completed before the rehova staff to proceed with using volunteers for ITEM #4.c. Interaoencv Committee /Boar There were no ITEM #5 — The meetinq adjourned at 8:15 p.m. Judi Hawkins Deputy Clerk with proposed )ack signs on Flagstaff for bids soon for scheduled eviously approved through the Heritage Center. There is a some interior demolition. The work are awarded.; Council directed Laurie Rieb Acting Mayor Minutes Lakeville City Council Work Session March 26, 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 Steve Michaud, Parks and Recreation Chris Petree, Public Works Director John Hennen, Park Maintenance and Zach Johnson, Interim City Engineer Judi Hawkins, Deputy City Clerk The meeting was called to order at ITEM #3 — Highview Avenue/ Public Works Director Chris transportation system for tf analysis of Highview /Holyc Engineer Zach Johnson <sta the existing configuration there are any traffic control study coinci looked at u determined _d with the area stated that in order to promote a strong 3RF had been retained to conduct a traffic study and iue and the area of'I90` Street. Interim City the purpose of the study was to identify whether affic to function at a high level and to determine if ements that are required today or in the future. The ient of the Crescent Ridge Third Addition plat and raffic counts. The existing conditions analysis well today with an "A" rating. The second part of the study was a future conditions analysis, based on a full build -out anticipated in 2030. This model predicts that with the current roadway layout the intersection will function poorly and forecasts long traffic delays. Based on that information, two design options were presented which would ensure that improved intersections would operate at an A or B level of service. The first option would be to install a traffic signal and designated turn lanes at the Highview Avenue and 190' Street intersection and construct a concrete median on 190`" Street so the future 190` Street and Harappa Avenue intersection will be restricted to right in /right out. The second option is to relocate the Highview Avenue 'S' curve to the north and create a roundabout intersection at Highview Avenue/ 190` Street, in order to eliminate the off- set "T" intersections. Both options show improved, and acceptable levels of service in 2030. City Council Work Session March 26, 2012 Page -2- Council Member Swecker asked if realigning Highview would push the issue off to future years when those areas to the north are developed. Johnson stated that the existing layout could be utilized which would lessen the impact or implications for developers of the adjacent property. The City would incur maintenance costs for the traffic signal and the 'T' intersections, which are less desirable in the transportation system, would still exist. Because Crescent Ridge Third developed earlier than the surrounding areas, it was added as a future traffic generator. The project is anticipated in approximately 2025. In response to some residents' questions staff looked at other improvement opportunities. Some ROW clearing has been done to improve sight lines. For improved safety staff is also proposing to extend the bituminous pavement by about 200 feet to the east and west of the 190`" Street intersection so gravel does not spill onto the bituminous of Highview Avenue. Council Member LaBeau stated that she has that time there have been six deaths on that additional traffic on 190` Street cutting thro Mielke stated that improvements on conjunction with development and Development proposals could be ex (Schweich) property which is within constructed at Dodd Blvd. and High development. She believes it is imp( number of accidents. Johnson state accidents and potential causes into minimum requirements. area for about 20 years and in from Hiqhview Ave. to Cedar. Mr. iat section of 190" Street will be completed in ere are currently no development plans. ored for a small portion of the adjoining ie'MUSA, LaBeau suggested the roundabout be °w Avenue to encourage contiguous ant to get this project accomplished due to the that the traffic analysis did take the number of nsideration, and the existing configuration meets LaBeau stated that she understood that several years ago the previous developer of Crescent Ridge had been required to straighten the curves in Highview Avenue through the plat. She wondered what has changed and why there is not a similar sense of urgency to get the project done now. Mielke explained that the initial plat for Crescent Ridge included moving the curve into the development. Under the original plan the developer, Joe Miller, agreed to pay for the road project but as the economy declined, it was not financially feasible for him to do so. The City dropped the requirement at that time. Swecker stated that straightening the curves on Highview has been discussed for a long time. She is not convinced that either of these proposed options are the perfect solution. Johnson agreed that the Highview Avenue roadway situation is challenging. Little asked if staff is concerned that the desired land might not be available in the future for the proposed roadway. Mielke stated that if the project can be designed and approved, the City can work with future developers on implementation. Funding options need to be addressed, since policies may be changed for sharing the cost of collector road improvements. LaBeau asked about future traffic signals at 185 ` Street. City Council Work Session March 26, 2012 Page -3- Mielke stated that 185`" St. is proposed to be a very busy road and traffic signals will likely be needed. Staff is recommending that the two connections of 190`" Street to Highview Avenue will be upgraded in 2012 with additional bituminous pavement for safety purposes. Council had no further questions. ITEM #4 — Ipava Avenue Pedestrian Crossing near Century Middle School Public Works Director Chris Petree stated that th 2011 as part of the Safe Routes to School (SRTS) meets the minimum requirements for pedestrian cro: Traffic Control Devices IMUTCDI, however, followinc requests from the school district and residents to fur# crossing. An analysis of the crossing found that sigh' traveling northbound on Ipava as they approach the removal of five crabapple trees from the median and in an effort to improve motorists' view a park or another location in the city n installation of a push - button activated implementing both recommendations sing was installed in ram. The crossing Manual on Uniform ion there were several nprove the safety of the obstructions exist for vehicles section. Staff recommends , i ash trees from the boulevard the crabapple trees to 111 cost of Funding is available as a result of favorable bids on other projects. Council Member Rieb asked if the school district has been approached to share in the cost. Petree stated that he had suggested this to CMS principal but has not received a return call. He is prepared to proceed regardless of whether the school district chooses to participate. LaBeau asked about ongoing maintenance costs. Petree stated that because the flasher system is solar powered, there is no monthly electrical operating expense; the LED lights would be energy efficient; and the equipment would last about 20 -25 years. The project could be completed in the summer of 2012. Mielke added that the police have increased their presence and enforcement to improve safety at the crossing. Little suggested that a policy be implemented to always ask the school district for cost sharing in these situations. Council members directed staff to proceed with the project and request cost sharing assistance from the school district. ITEM # i — Heritage Center Update John Hennen presented the results of the Heritage Center bids that were opened on March 20` The construction manager re- packaged the bid categories into what he felt would result in the best possible bids. Hennen stated that over 75 contractors' bids were received and based on the apparent low bids, the revised estimated cost of the project is $1,095,524, a decrease of approximately 524,000 from the estimated budget. City Council Work Session March 26, 2012 Page -4- Mielke stated that the construction manager re- packaged the categories of work compared with what had been reviewed previously may have created some confusion with the description of the work; however, the scope of work to be accomplished is the same. The same improvements are included, but some of the configurations and terminology were changed for bidding purposes. Additional background work will be completed before the apparent low bids are brought to Council on April 2 for consideration. Some revisions in the bids are still possible. LaBeau stated that some items' costs that she would expect to be straightforward, such as concrete, heating, etc., vary significantly from earlier estimates, while other bids such as electrical and plumbing seem to have been underestimated originally. She is concerned that all the funding mechanisms additional restrooms or showers would be ii available in the contingency fund to repair t plan has changed. The bids were not unde to the packaging of the bids. He suggested Council prior to considering approval of the the April 2 meeting and will be able to answ Michaud stated that there are several encouraged that bids on the total prc that the bids are not even lower, and those who have been asking her Dennis Feller stated that the $24,000, down to $1,095,OC the oriainal CDBG Senior Ce total fundraising goal has drol raised, plus a total commitmer of $190,000 remains. An interim financing source is project are not in place. She asked if and if there would be funds Mielke stated that nothing in the ed, but the inconsistencies were due packaging could be reviewed by le construction manager will be at -tors that could cause a;deviation in bids and is -t are under estimates. LaBeau is disappointed e wants to be able to provide an explanation to the estimates. bids reduced the total project budget by tion, the Citv's reimbursement to the CDA from rant will be reduced. Due to these factors, the overall I from $337,000 to $260,000. With $55,000 already $15,000,from the Rotary and Lions, total fundraising Jed for cash flows until the sale of the senior center is complete and final fundraising goals are met. Staff had recommended using either the Park Dedication Fund or the Liquor Fund, however, Council had expressed concern about using Park Dedication funds. Council was asked to consider use of liquor operation funds or the general fund. There are adequate balances in both funds. Swecker believes that the past practice of using the Liquor Fund balance for building purposes makes it the appropriate choice. She would not be in favor of using the Park Dedication Fund. Rieb asked about park dedication funds from the Hosanna senior project. Feller stated that those funds are already included in this financing package. LaBeau stated that she does not support borrowing from either liquor fund or park dedication fund. She believes the project is not self - sustaining and there will be additional operating expenses for the new building. She does not support borrowing the funds and was hoping the bids would be lower. City Council Work Session March 26, 2012 Little acknowledged that there were concerns about selling the Senior Center before going ahead with the project, but believes that a better offer could come later on as the economy improves. He would choose to use Liquor Funds as interim financing. Page -5- LaBeau asked if there had been any interest from potential buyers. Mielke stated that there had been a few people who had looked at it, but no offers had been received. LaBeau asked the cost to leave the building vacant. Feller estimated about $7,000 a year. It was suggested that the building could be converted for a rental, if the Council desired. LaBeau asked what building projects the Liquor Fund has been used for and the criteria. Feller mentioned fire stations, city hall additions, ice arenas, park improvements, and many other building projects. Mielke stated that there are no statutory limitations on what the funds can be used for; it is at the discretion of the Council., Mayor Bellows stated that the former police ineptness and inefficiency. Taxpayer money the last several years when those funds cou believes the police station should have beer should be sold before the project proceeds. put on the market when the police moved c been used to maintain for Little asked LaBeau if there was another opt amenable to, other than the Liquor Fund. F possible from the Council and asked if there oeueve,Tne seniors or me the funding to be clearer. ve been used to pay down debt. He years ago, and that the senior center cker agreed that it should have been it. )r financing that she would be to have the most support option that she would find to oppose the project. She doesn't ly engaged in the project and would like Michaud stated that in the last six months there has been just over $100,000 raised, including several commitments which will be received in increments. Other initiatives, including a program to sell chairs, will be announced soon. Grant applications have been submitted to various agencies and Council will be kept informed of any procurements. The possibility of room sponsorships was discussed. Michaud stated that there will be several methods of recognizing sponsors with plaques. Little suggested engaging the public through social media. In summary, staff recommends the revised estimated project budget as a result of the apparent low bids. A majority of the Council supports using Liquor Funds for interim financing. Fundraising and grant writing efforts will continue. The construction manager will be at the Council meeting on April 2 to answer Council's questions. City Council Work Session March 26, 2012 ITEM #2 — Kenrick Trail Project/ Grant Page -6- Michaud stated that the City of Lakeville has worked with the Bury family for many years in an attempt to purchase the Lake Marion bluffs and 3,500 feet of shoreline for the purpose of extending the Kenrick Avenue trail; however an agreement has not been reached. Dakota County also attempted to assist with the purchase without success. Staff has concluded that the best alternative is to relocate the trail to the south side of 195` Street while waiting to secure the desired trail segment when the Bury property is developed. In 2009 the City of Lakeville was successful in securing a $1 M federal grant for the Kenrick Avenue trail project. Because the trail is being relocated from the original proposed location for which the grant was awarded, staff is working with the MNDOT and the Metropolitan Council and anticipates final approval soon. The original project was programmed in the State Transpo FY 2014, however since the plans are approved and the pi was made for advance funding so construction can begin Funds are proposed to finance the project until the City re the federal grant. The required matching grant of 5460,0( Dedication Funds and Dakota County has tentatively agre of $22,000. The earliest grant reimbursement would be in Council is being asked to auth funding from the Trails Capital Swecker asked if there was any reason that the as scheduled. Chuck Rickart, WSB& Associates has been apps could possibly be accomplish Swecker exprc 205 which vg would have lit next year with engineer's esti Plan for in 201 to go, a request ves reimbursement from is available through Park to contribute a minimum ilv 2013. forward with the interim would not come through er, stated that the project 5ved and funds have been allocated for 2014; however, reimbursements be available sooner. Rickart stated that soil removals and grading might ed in 2012 but most likely not any of the actual construction items. sled concerns for the interference this project might have on traffic along ill increase with the opening of the Walmart. Rickart stated the project Ie impact on traffic this year since work will be off -road, but perhaps more gravel hauling and paving. Bids for this project were 6% under the LaBeau asked how bidders are held to their bids for asphalt when petroleum and labor costs are going up so rapidly. Rickart stated that bids have been favorable, but there is no guarantee. LaBeau suggested offering a discount to the contractor to offset future price increases. Rickart stated an alternate bid might be possible for doing the project earlier; however, whether there would be a cost savings is speculative. A mandatory fuel escalation clause is in the bid package. Mielke stated that using the bid alternate will include a financial analysis to see if further advance funding would be advantageous. City Council Work Session March 26, 2012 Page -7- Mielke clarified to Council that even though the estimated cost for the 205 Street roundabout was higher than anticipated, the project has not been cancelled. This item will be added to the April work session for discussion and Council direction. ITEM #5 — Other Lakeville Arenas The Lakeville Arenas Board will pay for some fencing around the parking lot at the Ames Arena to discourage illegal parking on school grounds. The school district has authorized split rail fence to be placed in strategic locations. ITEM #7 — Adjourn The meeting adjourned at 7:40 p.m.