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HomeMy WebLinkAbout04-23-12 WSMinutes Lakeville City Council Work Session April 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 Chris Petree, Public Works Director Allyn Kuennen, Associate Planner Dennis Feller, Finance Director Steve Michaud, Parks and Recreation Director Zach Johnson, Interim City Engineer Judi Hawkins, Deputy City Clerk The meeting was called to order at 6:00 p.m. by Mayor Bellows. ITEM # 1 — Amusement Devices Ordinance At their December 19, 2011 meeting, Council requested a review of the Mechanical Amusement Device Ordinance. Allyn Kuennen stated that in 1982 when large video arcade establishments were popular the City created the ordinance to better manage the number of gaming machines and to prevent arcades and other establishments from creating a public nuisance. In 2011 staff investigated neighboring cities to determine if there had been experiences of licenses being revoked due to mechanical amusement device nuisances. Staff was unable to find any incident where a license was revoked due to nuisance related issues. Kuennen stated that home entertainment systems and handheld games have contributed to a decline in the number of arcades. In 2012 a total of $2,910 in license fees was collected from 13 locations with a total of 181 devices. Due to this decline and the historical lack of related issues, staff is recommending Title 3, Chapter 12 of the City Code be revised to eliminate the required licensing of mechanical amusement devices effective January 1, 2013. Council Member LaBeau stated that eliminating this license requirement would be user friendly to the businesses. Council directed staff to bring a revision to the City Code forward to eliminate the license requirement for mechanical amusement devices. City Council Work Session Minutes April 23, 2012 Page -2- ITEM #2 — Update on 205 Street/Kenrick Avenue Roundabout Public Works Director Chris Petree provided background information on the Kenrick Ave. /205 Street roundabout project slated for construction in 2012. Zach Johnson summarized the project status. Plans are approximately 90 -95% complete and are currently being reviewed by City staff and MnDOT's State Aid Division (SAD. Review and revisions of construction plans and contract documents will be complete in about four weeks. The revised estimated construction cost for this project is $500,000, plus $130,000 for engineering and other costs. Increased estimates are the result of geometric design changes and improvements to traffic safety. Staff is recommending moving this project to 2013 instead of this year. Advertising the project early in 2013 before construction season starts, instead of later this spring, could result in more competitive bids. The Kenrick Avenue/ 185 St. to 205 St. mill and overlay project is identified as a 2014 project in the 2013 -2017 CIP. If that project was combined with the 205 St. /Kenrick Ave. roundabout project and completed in 2013 more favorable bids could be expected due to the expanded project. This would require reversing priorities with the mill and overlay project on the northern segments of Kenrick Avenue which is currently scheduled for 2013. Petree added that the conditions and need for the mill and overlay of the two segments of roadway are very similar. Wal -Mart will provide $75,000 toward the construction of the roundabout project; the remainder will be paid with Street Reconstruction Bonds. Council Member Swecker asked if there would be any opportunity for reducing the CIP to provide funds for this project. Finance Director Dennis Feller stated that the CIP will be presented to Council for recommendations at an upcoming work session. Swecker believes this project is an important priority but is concerned about traffic challenges and delays during construction. Johnson stated that the project will be constructed under traffic and is expected to be complete in six to eight weeks. LaBeau asked about the risk of waiting until 2013 to bid the project due to the rising cost of petroleum affecting the price of bituminous materials as well as increased construction activity due to the improving economy. Johnson stated that bidding early in the year has historically been advantageous. Contractors take fluctuations in costs into consideration and are obligated to honor their bids. It was the consensus of the Council to proceed with adding the 2014 Kenrick Avenue mill and overlay project to the roundabout project for bidding and construction in 2013, and delaying the 2013 Kenrick Avenue mill and overlay project until 2014. City Council Work Session Minutes April 23, 2012 ITEM #3 - Fee Structure for Senior Center Page -3- Parks and Recreation Director Steve Michaud presented proposed membership dues and program fee increases for the Lakeville Senior Center. The increased fees will assist with additional revenues needed for the day to day operation of Heritage Center. Additional annual revenue of $18- 22,000 is estimated. In addition, a participation surcharge is being proposed to offset expenses of daily programs. The per - program surcharge will be $.50 for members and $2.00 for non - members. To eliminate daily collection of fees, punch cards will be available in $10 or $20 increments. A $5.00 registration fee will be charged for programs which are held off -site, such as golf leagues and biking clubs. Mayor Bellows asked if staff or volunteers would be punching the cards. Michaud stated it would be done by volunteers. Council Member Little asked how long a punch card is expected to last for an active senior center participant. Michaud said possibly four to six weeks, depending on activity. Council Member LaBeau asked how much revenue the punch cards are expected to generate. Michaud stated that it has not yet been determined. LaBeau stated that there will be additional cost to the City if the current building is not sold. She asked if the Prime Time newsletter could be sent electronically in a list -sery in order to save some mailing costs, or made available to be picked up at the senior center. Michaud said that is on a list of cost saving possibilities to be explored; however there is a large percentage of seniors who do not use computers. Council Member Swecker stated that seniors have given a lot to the community and she would prefer if programs at the center could be included with their membership dues. She feels the punch cards might not be well received by the seniors. Michaud stated that requests are already coming in for use of the Heritage Center banquet room and use policies and fee structures are being developed. LaBeau asked if Senior Center members will be charged a deposit. Michaud stated that a refundable damage deposit would continue to be charged to everyone who reserves the new space. Mayor Bellows asked how the proposed membership dues compare to other cities in the south metro. According to a survey conducted in the last several months, the proposed fees will be higher than many of the other area senior centers. Some centers charge extra for programs and some do not; however most do not have as many program opportunities for members. The variety and quality of programming attracts many non - residents. Mayor Bellows would like to see a breakdown of ages of membership which also shows how many are still working. He suggested a tiered fee schedule. Michaud stated that the younger working seniors are looking for evening classes and activities. City Council Work Session Minutes April 23, 2012 Page -4- Bob Erickson, a member of the Lakeville Area Arts Center Board and Friends of the Arts, asked that the Council adopt a fee structure for building use which does not create competition with the Arts Center. He also believes that use policies for Heritage Center should be consistent with the Arts Center. Michaud stated that a subcommittee has been formed to begin drafting fees and use policies. Mielke asked if there are any low-income guidelines or financial assistance for seniors who are unable to pay for a membership. Michaud stated that the recreation division's scholarship program, funded by civic organizations, has not been used for seniors. Mayor Bellows agrees that it's difficult to begin charging for Senior Center programs which were once free, and the punch cards might be unpopular. Council would like to see the punch cards eliminated if program participation is negatively affected. ITEM #4 — Park Dedication Fees City Administrator Mielke provided a background of recent discussions by Council regarding park dedication fees. At their February work session, Council discussed establishing a formula based on land value and demand in order to determine park dedication fees. The next step is to choose a method for establishing land values. A report by The Planning Company (TPC) outlines several options for Council to discuss and consider. A request to reevaluate park dedication fees was originally brought up at the 2011 Developers' Forum. In August a developer submitted a plat request and utilized state law and city ordinance to dispute the current fees. The developer's required park dedication fees have been placed in escrow while the fee structure is examined. If the process results in fees being lowered, the excess portion of his payment will be refunded. TPC's report proposes a method of establishing park dedication requirements using residential units per acre (share X density = demand). Average number of persons per household (park users) based on the Comprehensive Land Use Plan, multiplied by the amount of land needed per capita, equals per capita park demand. Putting this into a formula combined with land value establishes a basis for park dedication fees which the City can require in lieu of land dedication. The report also suggests that varying types of property have varying types of demand. For example, for low density residential development, land dedication of 12% of the plat's acreage is being proposed instead of the previous 10% to satisfy park demands of a growing population. The decision of what will be the proportionate or relative value of the fee to the value of the land needs to be determined by Council. Staff provided several methods for establishing property value to be used in the calculation of park dedication fees. City Council Work Session Minutes April 23, 2012 Page -5- 1. Individual Appraisal of Parcels. Funds would be set aside by the developer for an appraisal. The Council could either accept the appraisal or require a second appraisal. The result of this method could be an inequitable, confusing system, with varying fees from plat to plat. Staff recommends a uniform property value be established to provide consistency rather than using the individual appraisal method. 2. Dakota County Assessor Data. State law requires that land values assigned to individual parcels be based on market value trends and be reasonably accurate. A review by staff found that from parcel to parcel there was inconsistency and wide variations in Dakota County's estimated land values. 3. Appraiser Consultation. This method uses a consultant to assess the values of undeveloped land within the MUSA by land use type, i.e., low density, high density, commerciaVindustrial, etc. This is an overall average and not based on specific parcels. The City's cost for this method could be up to $20,000. The consultation could be done one time, or more often if Council felt it was needed. 4. Market Value Percentage Adjustment. Since the peak of land values, the Dakota County Assessor has consistently reduced all values by 38 %. If that rate of adjustment is applied current land values would also be lowered 38 %. Park dedication fees in lieu of land would then be calculated based on the new formula of a 12% land requirement, rather than the previous 10 %. This method would provide consistency and could be adjusted annually to reflect market trends. The Parks, Recreation and Natural Resources Committee reviewed this information at their April 18 meeting but were not asked to make a recommendation as to how to establish land value. The EDC will also be reviewing the information on April 24 If Council wishes to change the park dedication fee, an ordinance amendment would be required. For consistency and equality, staff recommends that Council allow new plats that have been submitted since the time the letter of protest from the Crescent Ridge 2 nd Addition developer was received in August 2011 to be given the same park dedication rate. Little asked if the City Attorney was supportive of all of the methods outlined for determining land values. Mielke stated that the attorney is most comfortable with methods #3 and #4 which establish rough proportionality. Little believes it is important to establish a time period for reviewing the fees, such as annually or every two years. LaBeau asked why the sale price or the land couldn't be used as a basis because that's the actual market value. She is aware of parcels which have dropped in value by 50- 70%, rather than the 38% which is used in the formula, so this method could still be protested. Dakota County will reduce as little as possible because they still need to have the revenues coming in but the appraisal might not be consistent with an actual sale. City Council Work Session Minutes April 23, 2012 Page -6- Mielke stated that sales figures provided by the landowner or developer might not be accurate, since other factors could be involved in the transaction. An appraisal by an unbiased third party is the most reliable and if Council feels the Dakota County figures are not accurate then the consultation appraisals might be the next best. He would prefer to establish a consistent average rather than a specific parcel value so everyone is working with the same numbers. LaBeau asked why a per -lot fee is established by the land value if parks are built every mile. Mielke stated that that is what ultimately happens, but establishing land values will result in a uniform fee in lieu of land. He clarified that land values do not establish tax revenues. The assessor assigns a value to each property, which makes up the tax base. When all governments have set their levies the total amount is proportionately shared across the tax base. More or less revenue is not collected based on the property value. The assessed value establishes what portion of the taxes are paid by a specific type of property. LaBeau said she has seen property sell for far less than the assessed value and if a property owner wants an adjustment they need to challenge the value through the county. Mielke stated that would explain some of the variations in the values from one parcel to the next. A per -lot cash dedication must have justification based on what needs are generated by the land density. Michaud added that the formulas are based on needs generated by number of people per household and the density of development, Lakeville is currently behind the national standard for useable park property. In Lakeville's strong growth years residents approved two referendums to supplement purchase and development of park land, mostly for community parks, athletic complexes and trail corridors. Council Member Rieb referred to the park dedication fee survey conducted in October 2011 and believes the proposed fees would keep Lakeville in a competitive position. Mielke stated that these figures are for comparison only and are not relevant for setting fees. Swecker asked about the formula for categories of land other than single family or multi- family residential. Mielke stated that the percentages have been adjusted accordingly for residential but there is no change proposed for commerciaVindustrial at this time. Bob Erickson stated that the Chamber public policy committee discussed this issue last week and he believes the proposal makes sense. In order for a property owner to challenge their value the sale cannot be a stress sale or foreclosure situation, as it is not a measure of the market. He asked if the 38% reduction represents taxes payable in 2013. Dennis Feller stated it is for 2012. Erickson stated there will be another decline in values for taxes payable in 2013 and for this reason it should be revisited annually. He believes commerciaVindustrial fees should also be reevaluated and a consistent formula used. Mayor Bellows stated that he appreciates that the issue is being addressed and believes option #4 provides clear direction and allows adjustment up or down with the City Council Work Session Minutes April 23, 2012 Page -7- economy. If a challenge occurs, the burden is on the developer and the assessor and not on the city. He believes staff should proceed with method #4. LaBeau stated that it would be financially beneficial for developers if park dedication fees could be collected with building permits. Mielke stated that it could get cumbersome to track for single family but might be an option for high density or commercial/industrial. LaBeau stated it would be more user friendly for business if all the fees didn't have to be paid up front. Mielke stated that as a result of the developers' forum the requirements for when fees and securities are paid was adjusted. Payment of securities can now be delayed until after approvals and before filing the plat. Very good feedback has been received as a result of that change. Staff will provide Council with any recommendation or comments by the EDC following their April 24 discussion. Mielke stated that if there is a consensus on the method of determining land values and Council is ready to act, additional discussion regarding establishing land values for commercial/industrial properties should be held. Swecker stated that she would support a review of C/I fees, even though at this time she feels they should stay the same. Michaud stated that in 2006 -07 the current fees for C/I were recommended by a special task force made up of EDC and Parks board members. LaBeau stated that that was at the height of the market. Mielke pointed to the end result of needing to determine a method of establishing land values. LaBeau stated that cities also need to find a way to maintain the parks. The Builders Association predicts that there will be many more cities that will be challenged on their park fees. Mielke agreed that there will be cities that will follow suit, but it reflects positively on Lakeville to be one of the first to be responsive to the issue. ITEM #5 — Community Visioning Goals and Process Steve Mielke stated that the intent of the visioning process is to help the community and Council establish an informed future concept of the community. It is important for Council to be clear about what they wish to accomplish with the visioning process. Growth Management Task Force studies were done in 1992 and 1998 and each of them had a clearly stated mission. Council needs to determine what outcomes they hope to achieve, i.e., short and long -term recommendations on how to manage growth, and what future opportunities and threats exist. Creating a vision of where they would want the community to be can be narrow or open ended. Knowing what the results should be will give the consultant direction on designing a process to look at attaining those goals. Council approved $15,000 in the 2012 budget for the visioning process and $15,000 for a community survey to support the process. LaBeau asked if this could be built on from the work already done for the "Positioned to Thrive" base. Mielke stated that part of it pertains to business but other areas would include education, recreation, etc. Bellows believes it is important to determine if regrets will come from decisions that are being made now. Rieb stated that the study needs to City Council Work Session Minutes April 23, 2012 Page -8- be very broad -based to determine what lifestyle or amenities residents want for the community. LaBeau believes people need to be informed of the costs associated with what they want. Bellows stated that the demographic base needs to be considered; various age groups look at things differently. Mielke discussed the strategic process of identifying issues and establishing a common vision for the community then determining how to work together with other entities and community groups to get the vision accomplished. The marketing aspect of the EDC's Strategic Plan was intended to establish a realistic vision for community development. Little believes the visioning process needs to be more clearly defined if there are to be measurable and useful results. He would like to make it distinguishable from the regular community surveys and not be in competition with "Positioned to Thrive ". He also believes it is important to find people for the task force who have not previously been involved in similar roles. LaBeau asked who determines members of the task force. She believes there are many people in the community who wish to be engaged but have not been chosen for committee positions. Could the visioning process be an expansion of "Position to Thrive ?" When this process was completed in 1998 the facilitator did a good job of bringing a diverse task force together to reach common ground but the demographics of the community have changed a lot since then. Mielke suggested that several facilitators could be provided with a broad description of the goals and invited to submit a proposal on how they would accomplish those goals. It is important for the process to take into account all the criteria mentioned by the Council such as demographics, cost consciousness, and getting new people involved. Council members stated that they would like an opportunity to look at the reports from previous projects and see what has been accomplished as a result of those initiatives. Mielke indicated that the full reports are available for Council reading. ITEM #6 — Other The next Council Work Session is scheduled for May 14`" due to the fourth Monday, May 28, being Memorial Day, but not all Council members are available on the 14 ". Moving the work session to May 21 SL at 5:00 p.m. will also allow a Council member to attend the senior awards ceremony at Lakeville North High School to present certificates to the foreign exchange students on behalf of the City. Due to the change in the work session dates, Council members will attend senior awards nights at Lakeville North and Lakeville South High Schools: • Council Members Swecker and Rieb: May 14 Lakeville North High School • Council Members Little and LaBeau: May 24 Lakeville South High School City Council Work Session Minutes April 23, 2012 Page -9- A vacancy still exists on the Lakeville Area Arts Center Board. Staff is suggesting that previous applicants be contacted to see if they are still interested in serving on the board. If so, they can re- apply. Council would like to review and consider previous applications. A circus event that was scheduled at the Ames Arena drew criticism from PETA. The sponsor of the circus had changed their name which prevented the arenas manager from checking on their actual background and realizing there had been prior complaints. After discussing the matter the Arenas Board instituted a policy change that this type of event will not be scheduled in the future. LaBeau requested that in the future when draft documents that have been presented to the Council for review are modified in any way, the redrafted document should be redlined when it is given to Council to clearly show any changes that have been made. ITEM #7 — Adjourn The meeting adjourned at 8:10 p.m. Respectfully submitted, Judi; Hawkins De Clerk �V-L" -6dU- Mark Bellows Mayor