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HomeMy WebLinkAbout06-25-12 WSMinutes 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 Director Brian Carstensen, Fire Marshal Judi Hawkins, Deputy City Clerk The meeting was called to order at 6:00 pm. ITEM # 1 — Commercial/Industrial Park Dedication Fee Parks Director Steve Michaud introduced Dan Licht from The Planning Company. Mr. Licht stated that for the process of calculating Commercial/Industrial Park Dedication fees the same model was used as for residential fees. At their June 4, 2012 meeting Council approved a Subdivision Ordinance amendment to establish park land dedication requirements for all land uses and accepted recommendations for residential park dedication fees in lieu of land. The ordinance establishes that where a land dedication is required for C/I properties, 6% of the buildable land is to be dedicated. Following acceptance of that ordinance Council directed staff to continue to review park dedication cash fees in lieu of land for commercial and industrial development. Current fees are $7,693 per acre for commercial and $4,558 per acre for industrial properties. State Statute requires park dedication fees to be based on average fair market value. The formula for determining a cash fee 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 flan 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 valuation change for commercial and industrial properties as there was for residential. Staff believes consultation with an appraiser to establish an average fair market value for commercial and industrial properties would establish an accurate, consistent basis for calculating park dedication fees in lieu of land. Council Member Swecker stated that the appraiser consultation method seems most fair and expressed concern that individual appraisals would take too much time in the platting process. She asked if there were any other reasons that individual appraisals would not be used. Licht stated that State Statute does not provide for individual appraisals to be used to establish average fair market value. Council Member LaBeau suggested that since it is so costly perhaps an average price per acre could be determined based on data available. Licht stated that values are very much determined by the location of the properties and the cash fees would be inconsistent with actual values. Little asked how often a consultant would need to be obtained to make adjustments. Mielke stated that once the values are established by the original appraisals it might be possible to use the average valuation changes recommended by Dakota County for adjustments 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 for 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 time for 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 is important to treat all businesses equally. Little stated that some written guidelines would be needed. Swecker asked if any of the surrounding cities have similar ordinances. Carstensen stated that he was not aware of any. He agrees with establishing a standard for expectations from the business and what penalties would be imposed. Mielke stated 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 Policies Finance Director Dennis Feller provided an overview of the Debt Management Policy. The policy was developed with the assistance of Springsted and is based on Government Finance Officers Best Practices. The policies included in the Debt Policy include debt limits, debt management, debt structure, debt issuance, debt management, interfund borrowing, and regulatory compliance. The proposed Investment Policy includes objectives of cash and investment management with regard to 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. Little asked 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 development of the RFP, recruitment of task force members, and completion of the plan. LaBeau asked how the members of the task force would be chosen. Mielke stated that a task force will be formed based on Council direction. LaBeau stated that there are numerous 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, without 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 uninfluenced ideas to come from the task force. Mielke stated that the consultant who is chosen will assist with the task force process. Little stated that he would like to appoint representatives who have not previously served on a task force or an advisory committee. Swecker stated that she would also like to have new representatives; however, many of the people who have previously been involved would bring an important historical perspective. Council members directed staff to proceed with a consultant search and development of an RFP, and to provide an informational update at the next work session. ITEM #5. — Other Council discussed enforcement 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, J di, Hawkins Deputy Clerk Mark Bellows Mayor