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Home My WebLink About06-18-12 WSMinutes 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 staffs 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 I% 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 future funding 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 it 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 make 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 will be acquired for 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 $5.6M; and $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, staff's 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 MnDOT 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 of 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 July work 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 (non - operations, a minimum tax levy of I% per year is needed to achieve a zero fund balance at the end of 2017. Starting in 2014 the annual need is $1,930,000, not including liquor fund appropriations. No funding is provided in the 2014 -2017 CIP for playground replacement; staff would like to discuss potential revenue sources for this at the July or August work session. Staff asked Council to provide any feedback regarding the CIP items discussed. ITEM #8 - Adjourn The meeting adjourned at 6:50 p.m. Respectfully submitted, u Hawkins uty Clerk w., dx-c_— Mark Bellows Mayor