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HomeMy WebLinkAboutItem 06.cMinutes Lakeville City Council Work Session June 18, 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 Chris Petree, Public Works Director Steve Michaud, Parks and Recreation Director Mike Meyer, Fire Chief Judi Hawkins, Deputy City Clerk The meeting was called to order in the Marion Conference Room at 5:00 pm ITEM # 1 — Overview City Administrator Steve Mielke stated that the purpose of this work session is to gain an understanding of the proposed CIP projects, the timing of those projects, and their financial impacts. Staff is continuing to work on the equipment portion of the CIP and the operating budget for 2013 and 2014. Council will be asked to provide feedback on prioritization, funding sources, etc. It is staff's goal to notify property owners and hold public hearings on street reconstruction projects earlier in the year to provide them a greater opportunity to prepare for any upcoming assessment. Council is being asked to confirm their prioritization of transportation projects. The major 2013 project will be the roundabout at Highview Ave. and Dodd Blvd. The major 2014 project is anticipated to be the County Road 50/60 roundabout. Council Member LaBeau asked what the impact would be if the County's priorities changed. Mielke replied that the County could not compel the City to do any particular projects; the City and the County need to agree. ITEM #2 — Transportation Public Works Director Chris Petree discussed several proposed projects including the roundabout on Highview Avenue and Dodd Blvd. and improvement projects that would be constructed in conjunction with that project. The City is working with Dakota County on the design of the roadway and stormwater aspects. Staff believes more favorable bids will be received if these corresponding projects are constructed together. Also in the 2013 CIP is the Kenrick Avenue /205 Street roundabout. The plan sets are being prepared by SRF and are approximately 90% complete. The project will be partially City Council Work Session Minutes June 18, 2012 Page -2- paid with a cash contribution or special assessment of $ 75,000 from Walmart. The cost of this project has increased due to additional needed stormwater improvements. Petree discussed other transportation projects highlighted in the Draft 2013 -2017 Capital Improvement Plan. Major improvement projects and expenditures in the 2013 -17 CIP include Dodd Blvd. south from Co. Rd. 70 to the Scott County border; and mitigation of stormwater from Valley Park east to storage areas near Highview Ave. and 172 St. Council Member Little asked for an explanation of what constitutes a 1 % rainfall event. Petree stated that this was previously known as the 100 -year rainfall event and typically equates to 4 -5 inches over a short period of time. The Kenrick Avenue extension from Co. Rd. 50.to the 185"'' Street area is in the 2016 CIP. Developers and staff believe that the extension" - would be desirable to businesses in both the Southfork and TimberCrest areas. The application for federal funding was not successful; however, there is potential for futurefunding opportunities. The property owner has invested in the federal application process. Council Member Swecker asked about making this project a greater priority. Steve Mielke stated that some financing options could be formulated if Council were to decide 'ft needs to be done sooner. Little asked if retail companies would make a commitment if the extension was completed. LaBeau stated that there are poor soils in the area which might matte development more challenging. Petree highlighted several pavement management patching and overlay projects for the 2013 -2017 CIP. LaBeau asked when the turn lane would be put in at Holyoke and 210` Street. Mielke stated that the building demolition is currently being, completed and the necessary right of way wilt be acquired fcr intersection improvements planned in 2016. The area of Clays Acres has;had a'-significant number of watermain breaks in the last several years due to the age of the system and the corrosive soils in the area. Staff believes this replacement is an immediate need and has accelerated this project to 2013 on the priority list. Petree illustrated the prioritization areas through 2017 based on current condition ratings. Staff is proposing to add 204 Street to the Clays Acres' street project to possibly receive a more favorable bid. Finance Director Dennis Feller reviewed financing for the Transportation CIP. Over the next two years Dakota County's responsibility will be approximately $8.75M. Federal grants for Dodd Blvd. south of Co.Rd.70, some of which is in Scott County, will be S5.6M; and S 1.6M for the roundabout at Co. Rds. 50 & 60. Other funding sources are GO Improvement Bonds and GO Street Reconstruction Bonds, ad valorem taxes, special assessments, a possible advanced encumbrance of MSA funds; or establishment of a surface water management fee. Because the City does not receive the second half taxes until the Pavement Management Fund is expended, staffs objective is to keep the balance at a minimum of 50 %. The other objective is to maintain the tax levy at a relatively stable rate from year to year. This will increase by 1 % each year for five years. City Council Work Session Minutes June 18, 2012 ITEM #3 — Utilities Page -3- Proposed projects include sanitary sewer trunk extensions, lift station rehabilitation, annual replacement of approximately 800 water meters, sanitary sewer I &I repairs, watermain replacement in Clays Acres, tower and reservoir maintenance, construction of Well #20 in 2017, rehabilitation of high service pump at the Water Treatment Facility, well rehabilitation, watermain trunk oversizing and extensions, etc. LaBeau asked if there are extra water and sewer lines in place for future connections. Steve Mielke stated that the current connection charges are insufficient to pay the debt service on the WTF as intended. The tiered water rate system has been adopted as mandated by State Statute, putting the burden on discretionary water usage. Water conservation can delay the need to expand the current WTF or build a new facility. Dennis Feller briefly discussed possible financing options for the utility projects. Additional discussion will be held at the July work session. ITEM #4 — Parks Steve Michaud stated that approval has been received from MnDQT for the Kenrick Ave. trail plan which will allow that project to move forward. Staff is attempting to accomplish as much paving as possible this year in anticipation of higher prices. In addition to general park improvements, projects will include irrigation to Veterans Memorial; permanent tee boxes at the disk golf course, paving of Quigley -Sime and Meadows Park parking lots; upgrade of the Ritter Farm Park cabin; King Park improvements including parking lot paving, irrigation, and a handicapped accessible playground. Trail CIP projects include: • 185`' Street west from Ipava Ave. (45/55 cost share with the County) • South of CR,50 /Dodd to 208 Street (also a 45/55 cost share with the County) • Trail maintenance and seal coating • Planning and design for new facilities and projects • Sign maintenance and replacements Council suggested possible use Hof Sentence to Serve crews to accomplish some of these tasks. Michaud stated that he submits a request for crews every year. Several major maintenance items which have been deferred over the last few years need to be addressed. At the Juiyywork session staff would like to discuss budgeting these items into the general fund. The trail fund has been funded primarily through trail dedication fees. There is not an adequate balance in the park dedication fund for planned trail development so an alternate revenue source needs to be identified. Staff is recommending either increasing the tax levy for the trail fund, or moving the trail sealcoating back to the general fund. The developers of Village Creek recently paid $50,000 to access and connect to City water by going through Aronson Park. Those funds will be used for Aronson Park City Council Work Session Minutes June 18, 2012 Page -4- improvements including providing City water to the building, installing an irrigation system, and expanding parking. ITEM #5 - Facilities Dennis Feller highlighted various maintenance projects at City facilities. Projects under $20,000 will be represented in the general fund. Projects over $20,000 will be shown in the building fund, with the exception of the ABLE fire training facility which will be paid for under the liquor fund and the rooftop units at City Hall which will be paid for from the City Hall building fund and the liquor fund. The building fund will be replenished with the final payment of $825,000 from Lifetime Fitness in 2014. ITEM #6 - Equipment Dennis Feller gave a brief summary of equipment acquisitions. Most purchases will be handled through the equipment fund and through the individual departments' budgets. In 2013 several major pieces of equipment are scheduled for purchase through the liquor fund. There are no specific acquisitions appropriated for 2014 -2017, Council can direct any questions to department directors. ITEM #7 - Financing - Summary For CIP and debt service budgets only year is needed to achieve a zero fund lV annual need is $1,930,400, not includir inimum tax levy of 1 % per 2017. Starting in 2014 the No funding is provided it to discuss potential reven Staff asked Council to ITEM #8 - The meeting adjourned at 6:50 p.m. Respectfully Judi Hawkins Deputy Clerk 7 CIP for playground replacement, staff would like this at the July or August work session. regarding the CIP items discussed. Mark Bellows Mayor Minutes Lakeville City Council Work Session June 25, 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 D Brian Carstensen, Fire Marshal Judi Hawkins, Deputy City Clerk The meeting was called to order at 6:00 pm. ITEM # 1 - Commercial/Industrial Park Parks Director Steve Michaud introduced Dan Licht stated that for the process of ca the same model was used as for resit approved a Subdivision Ordinance a requirements for all land uses and ac dedication fees in lieu of land, The o required for C/l properties, 6fl7Qpf the acceptance of that ordinance C cash fees in lieu of land for core $7,693 per acre for commercial ing Company. Mr. it Park Dedication fees ees. At their June 4, 2012 meeting Council ent to establish park land dedication recommendations for residential park e establishes that where a land dedication is )le.iAnd is to be dedicated. Following �d staff to continue to review park dedication ial and industrial development. Current fees are $4,558 per acre for industrial properties. State Statuteri� quires park dedication fees to be based on average fair market value. The formula for determining a cash fie uses both the acres required to be dedicated and the land value. In order, to make this calculation, the land value needs to be determined. Three methods of establishing the average fair market value were discussed: 1. Individual appraisals could be completed by an appraiser contracted by the City with the costs passed on to the developer. Actual sales figures would not be considered reliable due to unstable prices and would not provide consistency between properties. This method could create timing challenges for the developer. 2. Data from the Dakota County Assessor could be used. However, review of this data found wide variation in estimated property values, even between adjoining properties. The result of using this data would be inequitable park dedication requirements for the same type of land use. City Council Work Session Minutes June 25, 2012 Page -2- 3. An appraiser consultation could be obtained to establish values of undeveloped properties within the MUSA by Comprehensive Plan land use designation and land use type. There are five land use categories that could be used as a consistent factor in the formula to determine the cash fee in lieu of land. Year -to -year adjustments can be made to the base value and additional adjustments could be made as needed. This option could cost up to $20,000 and take approximately three months to complete; however staff believes it would be an accurate and consistent basis for determining fees. A market value percentage adjustment could be applied based on the Dakota County Assessor's estimated land value reductions. Staff has reviewed this option and found that there does not seem to be the same consistent � industrial properties as there was for residential. Staff believes consultation with an appraiser to establ commercial and industrial properties would establish calculating park dedication fees in lieu of land. Council Member Swecker stated that the appraiser consultation i and expressed concern that individual appraisals would take too platting process. She asked if there were any other - reasons that would not be used. Licht stated that State Statuute does not provi appraisals to be used to establish average fair i'arket value. and for i seems most fair time in the ual appraisals individual Council Member LaBeau suggested that`sihce it is so an average price per acre could be determined based on data available. 'Lidht stated that values are very much determined by the location of with actual values, and the cash fees would be inconsistent Little asked how often a consult t would need to be obtained to make adjustments. Mielke stated that once the values are established by the original appraisals it might be possible Yo use the average valuation changes recommended by Dakota County for adiustments up or down in the fair market values. Licht added that councils and advisory committees have some flexibility for unique circumstances and-the Statute offers some flexibility. LaBeau suggested the Council ask advisory committees fdr, their input before proceeding with a study. ITEM #2 — Liquor License Ordinance Requiring Fire Inspections Fire Marshal Brian Carstensen provided Council with an overview of a proposal to require annual fire inspections at all on -sale liquor establishments in the City. The Fire Dept. currently conducts inspections on Commercial and Industrial businesses to insure the safety of the public and the workers in those facilities. This change to Title 3, Chapter I of the City Code would require similar inspections for on -sale liquor establishments. Compliance with the Minnesota Fire Code would be required for renewal of the liquor license of the establishment. There would not be any fee charged to the establishment for the inspection. City Council Work Session Minutes June 25, 2012 Page -3- Council Member Rieb asked if the inspections that are currently done are scheduled or unannounced. Carstensen stated that businesses receive a letter informing them that the Fire Marshal or Inspector will be in the area but the business is not given a specific time or appointment. If violations are found, the Fire Dept. works with the business to resolve the issue. Swecker asked if penalties for violations would be imposed on a tiered scale. Carstensen stated that possibly putting their liquor license renewal in jeopardy would be the only penalty. Multiple violations would be dealt with on an individual basis. Inspections would be done in January or February to allow ample tirnefor the business to comply before license renewal applications in June. He added that most MN fire Code violations are in establishments' kitchen areas. Mayor Bellows stated that it isirnportant to treat all businesses equally. Little stated that some written guidelines would bo ,heeded. Swecker asked if any of the surrounding cities have similarordinances. Carstensen stated that he was not aware of any. He agrees with establishing a st pdard for expectations from the business and what penalties would be imposed. Mielkestated that there is still time to explore this issue and the inspection process before a decision needs to be made. He believes the public and license holders should be made aware of this potential ordinance change. ITEM #3 - Legislative Policy Manual - Finance Director Dennis Feller The policy was Finance Officei limits, debt ma Ure, n overview of the Debt Management Policy. nce of Springsted and is based on Government es included in the Debt Policy include debt debt management, interfund regulatory The proposed Investment Policy includes objectives of cash and investment management with regardto safety, concentrated credit risk, and interest rate risk. Feller stated that due to the huge swings in the market over the past 30 years the City has seen all extremes in the economy. Littleasked for,some background as to why these policies are needed. Feller stated that credit rating agencies request these adopted policies to ensure internal control structure for the purpose of asset protection. Addition of the "Interest Rate Risk " section reflects the need for staff not to take undue risk in investments, which could result in loss of capital or cash flow challenges. The Finance Committee has reviewed the Debt Policy and Investment Policy and recommends Council approval. ITEM #4 - Community Visioning Plan Funds are allocated in the 2012 budget for a community -based visioning process for the purpose of establishing an informed, reasoned and cohesive picture of the community's City Council Work Session Minutes June 25, 2012 Page -4- future. The purpose of this process is to assist residential, commercial, and industrial property owners as well as government agencies in identifying strengths and challenges of the community and identify what needs to be achieved for a desired future. Staff is seeking direction from Council before soliciting consultant proposals. Mielke reviewed some of the plan's possible objectives and outcomes. When the plan is complete the City can use it as a guide for decision making and setting policy direction. Swecker asked if the school district was willing to be a partner on this project. Mielke has spoken to the Superintendent of ISD 194 who agrees with the importance of aligning principles and resources and working harmoniously toward the intended outcome. Mielke will also speak to leaders in ISD 192 and ISD 196. Other partnerships will include the Chamber and CVB. The visioning plan will include a four -to -six month process for develop recruitment of task force members, and completion of the plan. LaBe< members of the task force would be chosen. Mielke stated that a task formed based on Council direction. LaBeau stated that there are nurr of the the s areas of the community that could be represented. Swecker suggested the appointment of three representatives from each demographic area of the,city. Council members agreed that it should be a broad cross section of the community,whiithout getting, unmanageably large. Mielke stated that those who are appointed to the task force will be provided with data to give them a historical perspective and help them to understand what has previously been accomplished with adopted Strategic Plans. Swecker believes the Council should remove itself from the process to allow uniq#Uenced ideas to come from the task force. Mielke stated that the stated that he task force or at representative. bring an impoi Council memb an RFP, and to ITEM #5. — Ot however, m� jnt historical directed staff wide an infon Council discussed is oft&sjj will assist with the task force process. Little oint representatives who have not previously served on a tee. Swecket'st led that she would also like to have new c6f the people who have previously been involved would with a consultant search and development of update at the next work session, of truck traffic on 210th Street. Council commended staff for their efforts on the recent storm cleanup. Staff will begin sending out notifications to owners of vacant properties where trees need to be removed. Emergency Management Director John Kornmann will present a storm response recap at the July 2 nd Council meeting. City Council Work Session Minutes June 25, 2012 Page -5- ITEM #6. — Adjourn to a Closed Meeting. Motion was made by Rieb, seconded by LaBeau, to adjourn to adjourn to a closed meeting to consider a Letter of Intent on Outlots B and D, Kings Creek Greenway Addition. Motion passed. Council discussed a Letter of Intent submitted by a developer regarding the acquisition of City -owned Outlots B and D, Kings Creek Greenway Addition. Council may be interested in further discussions of a property transaction at the appropriate time. ITEM #7 — Adjourn The meeting adjourned at 8:20 p.m. Respectfully submitted,