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HomeMy WebLinkAboutItem 06.cMinutes Lakeville City Council Work Session July 23, 2012 In attendance: Mayor Mark Bellows Council Member Laurie Rieb Council Member Matt Little Council Member Colleen LaBeau Absent: Council Member Kerrin Suu Staff: Steve Mielke, City Admiriisl Dave Olson, Community Zach Johnson, City Engine Chris Petree, Public Works Judi Hawkins, Deputy City The meeting was called to order at 5:00 There were no citizen comments. ITEM 1 — Insurance Auto Director Dave Olson briefed the City Council on the Airlake Development proposal to relocate the Insurance Auto Auction (IAA) business, currently located in St. Paul, to the Airlake Developmenrproper, Ty on the east side of Cedar Avenue, south of the Airlake Airport. IAA is a wholesale salvage vehicle auction company which provides storage and auction servlcgs to insurance companies for vehicles that have been totaled for insurance purposes. IAA has 160 facilities nation -wide. There is no parts salvage or; repairs made on site. Most customers buy in large volumes for commercial purposes. The property is the area that was annexed to the City of Lakeville in 2008 at the request of the property owners. It is zoned 1 -2 and is in the current MUSA. The property owners consider this an interim use and will lease the property to IAA for 15 years with optiorl5 for extensions to 25 years. This use is considered wholesale, which is allowed in the I -2 District, however most of the use would be outdoor storage, which requires an interim use permit. The City's Transportation Plan calls for a realignment of Cedar Ave. to accommodate a future extension of the Airlake Airport runway. Watershed issues will also need to be taken into account. The Zoning Ordinance requires asphalt surfaces for outdoor storage. Dan Regan of Airlake Development stated that the property is on a 99 -acre parcel near 220' Street across from Airlake Airport, adjacent to Eureka Township. Benefits of the project would be construction - related jobs, approximately 25 -40 employees, and an increased tax base for the city and county after the property is City Council Work Session July 23, 2012 Page -2- improved. Because of their significant investment, IAA would like to be guaranteed use of the property for 25 years. The developer is working with the Metropolitan Airports Commission to identify right -of -way in order to accommodate future runway expansion. The stormwater holding area has an oil separator to filter runoff. A security /privacy fence and heavily landscaped berms will surround the entire site. The facility will not be visible from Cedar Avenue. Mayor Bellows asked if the surface would be pervious or impervious. Mr. Olson stated that the surface is pervious and is comparable to Class 5 gravel with an asphalt emulsion coating. Mr. Mielke added that the material works well for dust control for the site; fluids will still permeate the base mat aal. Council discussed the length of the interim uto permit. The ordinance does not te define "interim" but the Council would appro 'various i4eirim use criteria and terms and can grant extensions. The Watershed District will also be reviewing the application due to the proximity of the site to the trout stream. Council will reexamine the proposal the Watershed District. ITEM 2 — Collector Road Public Works Director C Engineering. City En Financing Study cote Developers Forum. Th system and the anticipa construct and pay for cc from MAC and introduced Bret Weiss and Monica Heil of WSB ich Johnson stated that the Collector Road WSB evolved from the January 31, 2012 Talyzes the current transportation infrastructure >ut. Lakeville's current policy is for developers to dways as part of their development. Developers share for road improvements and infrastructure. Monica Heil provided background information. The study reviewed current and future infrastructure and ,transportation system needs, financing policies, and roadway design standard`s: Past practice has been for developers of new plats to dedicate rights of w19Y, to accommodate various classifications of roadways in addition to trails and sidewalks on major and minor collectors. Developers are required to construct arterial roadways to the City's Comprehensive Transportation System standards. The new Dakota County policy proposes to fund over - sizing costs if roadways are constructed to their ultimate sections. Currently there are approximately 46 miles of minor collector roadways in the City with an additional 20 miles proposed; and 42 miles of major collector roadways with an additional 22 miles proposed. The State Aid System evaluated current and projected mileage using 2030 Comp Plan estimated population and verified all City Council Work Session July 23, 2012 Page -3- new collector and arterial roadways could be added to the City's State Aid System. State Aid funds may be available to assist with future roadway projects. Using the current policies, the cost estimate for ultimate expansion of the system is approximately $282,600,000. These are projected costs and are stated in today's dollars. Funding could come from a combination of city, county, state, federal, and developers. The study suggests the following goals: employ right -size design standards; develop a funding approach that will provide value to all parties; and budget for future new and reconstruction projects. The study can be used as a tool for Council to discuss the current City fypding policy for collector roadway construction; evaluate design standards, andeonsider funding alternatives for the City's share of construction costs. Developers are currently being asked to pay for where they cannot construct driveways accesses. ' are passed on to the homebuyers, with the -b generate additional traffic. Mr. Mielke stated that if more in the costs, financing alternatives such as ins need to be addressed. Input should be solicited fr Altering design standards such as roadway Widths to reduce costs. Funding prioritization would deters so not to create gaps in the City's development. Mr. Weiss stated that the effort will need to be mz arise. WSB believes, it is build out of the Citv and Item ,3 — 2012 Parks, iicly used collector roads -osts of the improvements that additional residents City is going to participate ed taxes, assessments, etc. he public and developers. ht provide an opportunity the order of development ethod is not necessarily wrong, but a constant iitor and update prioritization as opportunities for Council to have an overview of the future funding policies. Plan Dan Licht of The Planning Company (TPC) stated that the update of the Parks, Trails and Open Space Plan is an ongoing effort to stay current with changing times and needs. It also allows for consideration of new ideas and opportunities to provide for park and trail facilities and recreation programs for all residents. The plan is based on nationalstandards as well as community preferences. This update emphasizes trails and:,greenways and defines the purpose and classification of each trail segment based on function and connections. Community playfields are a priority for youth and adult team sports. The trend of increased organized sports continues to increase the need for fields. The update continues the policy of working with area school districts and athletic associations to avoid duplication whenever possible. In the newer and undeveloped areas of the City, the service radius of neighborhood parks has increased over time from a quarter -mile to a minimum of one -half mile, defined by physical boundaries. City Council Work Session Juy 23, 2012 Page -4- The plan recommends 15 additional active parks, including three community playfields and 12 neighborhood parks; and two planned conservation areas — one by King Park and one by Lake Marion. The Parks, Recreation and Natural Resources Committee reviewed the draft Parks, Trails and Open Space document at their July 18, 2012 meeting and recommended approval by City Council. Council Member LaBeau is concerned about an aging population and estimates by the Met Council. She had contacted Met Council Commissioner Wendy Wulff about conducting an analysis of Lakeville's population. LaBeau believes the needs are different today than they will be in 30 years. LaBeau also asked about property in the industrial park that is identified as parkland. �,l icht stated that City -owned property is identified as a trailhead for the trout streaia��tnd t5ossible site for fields. Council has indicated that they wish to havethe Parks acid Trails Plan included in the visioning process, with the community having an opportunity to see the plan prior to adoption by the City Council. Bellows asked about maintenance costs and sustainability of the system. He sees it as more of a wish list than ;a plan and asked how funds would become available. Bellows asked what maintenance City. John Hennen stated that ballfields and the cost is covered b lighted fields provide additional I expenses of constructing additions The EDC com be needed for the 70% >r school facilities by the the elementary school fees. Mielke added that be used, saving on the n and Natural' Resources Committee, and the park dedication fees. The cost of proposed s approximately $100M. Park dedication fees it other revenue sources such as referendums Mielke suggested Council consider allocating )ark classifications, i.e., neighborhood parks vs. LaBeau asked if there have been discussions on the national level regarding how changing demographics impact park needs. Licht stated that the map reflects how service areas and spacing have been adjusted for future designated parkland. LaBeau believes there are a lot of parks in the system that are under - utilized. Council Member Little asked for a clarification of the community park expansion areas. Licht stated those are areas where there is a desire to acquire property to increase the size of an existing community park, such as Ritter Farm or Antlers Park. Mayor Bellows believes further fiscal analysis is needed before the plan is adopted. Mielke suggested that policies be adopted on how to allocate park dedication fees and other revenues to insure that Council priorities are being met. City Council Work Session July 23, 2011 Page -5- The County is focusing on regional trail systems which could mean construction and maintenance costs of some trails identified in the Parks Plan could be passed on to the county. Resident David Bares asked about public - taking" of property to add to a community park. Mielke stated that acquisition would typically come at a time when property develops or through a willing seller. Item 4 - Other The LOGIS consortium and the DCC will be tooking,at alternatives to the Motorola system, which did not adequately function as desired. The Cedar Corridor will receive its final lift of asphalt in August and will be substantially complete by fall. Item S - Adinurn. Minutes Lakeville City Council Work Session July 30, 2012 Lakeville City Hall - Marion Conference Room The me ITEM # Motion propos City of Motior ITEM #2 — Proposed 2013-14 Budget and Tax Levy Discussion. ^ctor review iinst the Staff is proposing a 2.5% increase in the tax levy for 2013 and 3.0% increase in 2014. General Fund: There is an un- appropriated /unencumbered 2012 beginning fund balance of $911,694 as a result of expenditures being less than budget estimates ($610,982) and _2011 revenues exceeding budget estimates ($300,712). Revenues were the result of collection of delinquent taxes, increased building permits, and unfilled City positions. Favorable weather conditions resulted in lower snow removal and heating expenditures. Staff recommends this $911,694 be appropriated to finance projects which would result in a corresponding reduction in future tax levies. The proposed budget and tax levy include $611,694 appropriation to the Equipment Fund and the remaining $300,000 to the Kenrick Avenue round - about. In attendance: Mayor Mark Bellows Cni inril MPmhPr I ai iriP Rieh City Council Work Session Minutes July 30, 2012 Page -2- The appropriation to the Equipment Fund would reduce the tax levy for the over a three - year period. Council Member Swecker asked why not appropriate it all in one year. Feller stated that would reduce the tax levy for one year but cause it to spike the following year. Reducing the equipment debt would have the same result as appropriating the same amount to the general fund. 2013 revenues are proposed to increase 3.4% from the 2012 budget, primarily due to increased property taxes and building permit revenues. Decreases are anticipated for intergovernmental revenue due to the recent gun range cleanup costs and investments. Fee adjustment recommendations will be presented at the September work session. A fee structure will need to be in place by the time the Heritage Center opens. Expenditure increases in 2013 are primarily related to several positions and the addition of a new street mai initiatives include: of • Assistant City Administrator to replace the position which was vacated in 2008; • Paid Engineering interns; • Reinstatement of funding for schools and conferences to provide more opportunities for professional development for employees; • Upgrade to iPods for improved technology for building inspections; • Automated online employment application software for HR, supported by LOGIS, would save time and printing costs, • Addition of 15 rookie firefighters; • Facility attendants at Heritage Center to assist with rentals; Little asked about turnover of employees for similar positions at the Arts Center - they have all been there for at least three years; • Irrigation system at the Arts Center. LaBeau asked if there is a risk that vendors at various events would damage the sprinkler system. Feller stated that this would be carefully monitored and vendors would be responsible for any damage. Other non - budgeted items which Council might consider include: • Increases in Mayor and Council salaries - action would need to be taken prior to the election; • Membership in the AMM Metro Cities; staff is not advocating rejoining at this time; • Addition of a code enforcement officer position eliminated in 2008. This includes home foreclosure monitoring, weeds, junk cars, etc.; Council can consider the level of enforcement on such things as sign violations and a possible Administration Citation process; Little asked about the work load of this position and why this was not listed as a priority. ``Mielke stated it is a result of Council's budget direction last year. Council asked for a more detailed analysis of filling this position. • Parks Dept. rental canoe rack at Orchard Lake Park; could be paid for through user fees or possibly donated by a civic group. it was suggested that more than one rack might be needed; • Reopening of additional outdoor skating rinks. Last year Council authorized reopening Highview Heights rink. The Parks and Rec committee is recommending City Council Work Session Minutes July 30, 2012 Page -3- opening up Cherryview, Quail Meadows and Rolling Oaks rinks. Little stated this is a lesser priority compared to some other items on the non - budgeted list. • Mowing of boulevards adjacent to county roads. Little asked if this could be done by a seasonal employee and the cost of purchasing rather than renting an additional mower. LaBeau asked if the county would reimburse the city or pay a portion of the maintenance. Parks Gardener - $16,000 annually Parks - playground replacements. Not included in any budget in the next five year. Options for funding include a bond referendum or use of fund balance, or liquor funds. Rieb feels it is important to add some playground replacements to the budget. LaBeau believes the tot -lots are under - utilized. She asked if there is anv wav to analyze how much they are used by the commun be some way to determine how many people are with this at the August work session. up 2014 Budget: Revenues in 2014 are estimated to increase by $370,149, largely due to the tax levy. Expenditures are estimated at $211,208, primarily due to the elections, step increases for employees, and major initiatives. 2014 Major Initiatives include: • The Urban Reserve Comprehensive Plan Update is appropriated in the Planning budget for $10,000. • Engineering Technician. The city currently uses the services of WSB. • Streets - Service Technician - a full time fleet supervisor would allow the fleet lead to spend more time of the vehicles. • Fire volunteers' compensation - increase in pay for calls and training or consider a pay per hour structure rather than a, pay per call -out. The cost is approximately $18- 22,000 annually. The personnel committee will review various options. 2014 Non budgeted • City Clerk - Elections. If the Voter ID amendment passes, election costs will increase tive in 2014 the City may need to provide health care to more than 30 hours per week. The fund balance at the end of 2013 is 44.8% and at the end of 2014 it is 43.7 %. This is within the accepted guidelines for fund balance. The overall 2013 tax levy for all proposed budgeted items is 2.5 %, of which 1.6% is for general fund operations. This is a reduction from 2.7% in 2012. One percent point equals approximately $220,000. Special Revenue Funds • Communications Fund budget provides cable TV services on channel 16, marketing initiatives, Messages, and the City website. Non- budgeted: • Community calendar. Information from all departments could be included in a printed calendar distributed to all residents. Cost would be approximately $20,000, City Council Work Session Minutes July 30, 2012 time. some of which would be offset by advertising. Council asked if the school district still provides a calendar and suggested a collaborative effort. Little felt that most people get their information online and from the local paper, where the City already has made an investment. PEG fees - Public Education and Government fees are being explored. Meeting room improvements. The meeting room at the WTF is in need of new carpet and furniture and updated technology, sound equipment, possible Smart Board, etc. The possibility of charging for rental of the room has been discussed and will be explored further. Updates to the room could be funded through the Communications budget. Staff will prepare a budget for improvements. Equipment acquisitions - Council might consider funding equipment through the Communications Fund so Liquor Funds could be used for other needs.' The Economic Development Fund accounts for administrative fees for businesses expanding or locating in Lakeville. Little asked about mem Greater MSP; Olson stated that staff does not recommend ioininq at tt Debt: At the end of 2012, the City of Lakeville's $109,745,000. Feller provided an overview of t refinancing street reconstruction bonds and cal obligation bonds will be issued to finance upco About half of the debt is paid with revenue sources. Capital Projects Funds: • Municipal State Aid Street Fund, • Pavement Manaqement Fund Page -4- rT approximately i realized by bonds. General truction projects. Jer from various • Improvement Construction Fund: Major initiatives include Kenrick Ave. roundabout, Highview Avenue - 173rd St. to Interldchen; and Kenrick Avenue extension. • Park /Trail Dedication Fund: Council members' priorities are the Dodd Blvd. trail from 208th to Co. Rd. 50 and the 185th Street trail from Jamaica to Ipava which is planned be constructed in 2014 in conjunction with the 50/60 roundabout. • Trail Improvement Fund: X/SB's recent report recommended the City appropriate $200,000 peryear for trail maintenance and replacement. Council discussed Highview /Holyoke at 190th Street traffic and residents' concerns about safety. Additional traffic will be generated by the Crescent Ridge development. Possible alternatives could be bypass or turn lanes or possibly a roundabout. Building Fund: The ABLE fire training facility and the replacement of the City Hall roof- top HVAC units are proposed to be financed from the Liquor Fund in 2013. • Equipment Fund: acquisition and replacement of vehicles and equipment is financed primarily with property tax levies and also by General Fund, Liquor Fund and Compensated Liability Fund. Mr. Petree discussed the strong need to replace the City motor grader. City Council Work Session Minutes July 30, 2012 Page -5- Major initiatives include additions to IT, Police, Fire, Streets and Parks. The equipment fund budget includes replacement of the current Parks showmobile in 2013 at a cost of $1 10,068. In addition to the Parks events, the Showmobile is utilized by non -city events such as Pan- O -Prog and Taste of Lakeville. Council discussed possible rental of a showmobile unit at approximately $8,500 annually, imposing a charge to user groups, and staff time needed to transport and set up. Council members asked to remove purchase of this item from the proposed 2013 budget and possibly reconsider purchase in the future. 2014 major initiatives include Street Dept. Mobile Resource Management System, technology which would provide more efficient management of de -icing chemicals. Election equipment replacement is proposed to be financed by the Liquor Fund. Non - budgeted items include a police squad car video system and Streets message; board. Feller reviewed Enterprise Funds: Liquor Fund, Utility Funds, and Internal Service Funds. In summary the proposed tax levy will increase by $570,673 (2.5 %) in 2013 and by $ 710,610 (3.0 %) in 2014. Staff is recommending transferring the compensated liability fund to the equipment fund. Due to changes in accepted accounting principles, the fund has lost its usefulness. Closing the fund will support stability in the tax levy. In discussing the budget process timeline, Swecker stated that she will not be present at the September 24 work session. Council will set an additional budget work session for September I 01 at 5:00 p.m. A public budget informational open house and a Chamber Open House will also be scheduled. ITEM #3 — Adjourn The meeting adjourned at 8:30 p.m. Respectfully submitted, Judi Hawkins Deputy Clerk Mark Bellows Mayor