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HomeMy WebLinkAbout04-22-13 WSCITY OF LAKEVILLE CITY COUNCIL WORK SESSION MINUTES April 22, 2013 Mayor Little called the meeting to order at 6 p.m. in the Marion Conference Room at City Hall. Members Present: Council Members Swecker, LaBeau, Anderson, and Davis, and Mayor Little Staff Present: Steve Mielke, City Administrator; Daryl Morey, Planning Director; Brett Altergott, Parks and Recreation Director; John Hennen, Parks Superintendent; Dave Olson, Community and Economic Development Director; Gene Abbott, Building Official; and Judi Hawkins, Deputy City Clerk 2. Citizen Comments There were no citizen comments. 3. SuperAmerica (Cedar Ave.) minor variance Daryl Morey provided information regarding the request of the SuperAmerica located at 16161 Cedar Avenue for a minor setback variance. The variance is needed due to the acquisition of additional easement area by Dakota County to accommodate a permanent trail and drainage and utility easements as part of the Cedar Avenue BRT project. The setback variance would allow existing improvements including SA's monument sign, parking lot drive aisle, underground fuel tanks, vent pipes and protective wall, and light and flag poles, to remain in their current position. A public hearing is optional and is at the discretion of the City Council; however, a public hearing was not required in similar circumstances for Ole Piper Inn and South Twin Cities Church of Christ. Granting of the variance will memorialize the existing SA improvements and eliminate the need for a condemnation commissioners hearing. Anderson asked about the condemnation process. Morey stated that the process begins with the government body attempting to work with the owners to reach an equitable solution as to the value of the property required for an easement. If an agreement cannot be reached a condemnation commissioners hearing is scheduled. Council agreed with staff s recommendation that there is not a need for a public hearing and directed staff to place the item on the May 6 consent agenda. 4. Lakeville Area Arts Center Master Plan Brett Altergott and John Hennen presented the LAAC grounds master plan which has been revised as a result of recent discussions with user groups. During the 2013 budget process Council discussed potential improvements to the grounds of the Lakeville Area Arts Center which would take place following the removal of the Historical Society building. Funding for an in- ground irrigation system was approved as part of the 2013 Building Fund budget. It was decided that prior to making any improvements on the site, the 2002 LAAC grounds master plan City Council Work Session April 22, 2013 -2- should be reviewed by the main user groups to solicit ideas for future needs and uses of the facility grounds. Staff met with representatives from the Lakeville Rotary, Lions Club, Pan -O- Prog, ISD 194, and members of the LAAC Board and Friends of the LAAC. As a result proposed grounds improvements include installation of underground conduit in order to safely supply electrical needs for outdoor events, permanent siting of tent locations, a sidewalk connection around the building, and landscape screening around the electrical transformer. The user group representatives expressed their desire to keep the facility flexible for existing events as well as to encourage and allow for new uses. The grounds master plan also proposes possible future expansion into other adjoining and nearby sites, if they were to become available. Anderson asked if there is a timeline for completing the master plan improvements. Altergott stated that much of the plan is designed for current improvement projects but also includes potential future classroom space expansion into the surrounding buildings and properties. Anderson expressed his opposition to installation of an in- ground irrigation system which he believed could appear extravagant. Mielke stated that because of the many outdoor events and activities that take place on the LAAC grounds it is important to maintain a healthy lawn. The current method of hand - watering the grass is not the best use of the director's time. The project will cost approximately $17,500: $16,000 which is budgeted for the irrigation system plus about $1,500 for the conduit. Anderson added that his perception of a master plan is a long -range plan where projects are done in increments; this might also include fundraising goals and a business plan. Mielke pointed out that this proposal is actually an exterior site planning process and discussions regarding program expansion opportunities could take place at a later date. Altergott stated that the user groups are overall very pleased with the facility. LaBeau stated that she is concerned about the irrigation lines being damaged when tents are put up for the various events. She also suggested putting together a list of potential upgrades for possible sponsorships. Davis stressed the importance of including a rain sensor into the system so it doesn't run when it's not needed and also wants to make sure watering follows the City's odd /even ordinance. Swecker believes it is important to maintain the City's investment and to hold any user group responsible for damage to the lines. Her recommendation would be to proceed with both the in- ground irrigation and the expansion of electrical services. Discussions ensued regarding future program expansion and possible use of the District 194 Alternative Learning Center (ALC) for extension of art classes and LAAC programs. It was suggested that a long range business plan be explored in the event the school district decides to dispose of the building. LaBeau asked about the status of the water fountain which had been proposed by the Friends of the LAAC. Altergott stated that it was a general consensus to remove it from the plan due to long -term maintenance costs and limitations it would put on other uses. City Council Work Session April 22, 2013 -3- Staff is requesting direction from Council to proceed with the installation of the in- ground irrigation system and the expanded electrical system on the LAAC grounds. Anderson stated that he was not supportive of the irrigation system. Little reviewed the background of the irrigation system and previous decisions made by Council during budget discussions. 5. Heritage Center rental policies Brett Altergott gave a brief overview of discussions regarding proposed Heritage Center policies and fees which were held at the March Council work session. At that meeting Council discussed extending rental hours to 12:00 a.m. for Fridays and Saturdays to accommodate weddings and other events; and allowing the conference room to be available by non - profit groups for up to two hours per month at no cost; and adding all-day (12 hour) fees. Council further directed staff to explore offering discounted rental fees to non - profit user groups that donated a significant amount to the Heritage Center. The outcome of those discussions is that staff recommends rental fees for large donors not be discounted. It is staff s opinion that the donations were meant to cover capital costs for the improvements and were not given with the intent of receiving rental discounts. Regarding evening use, LaBeau believes it is important for guests not to congregate outside where they might disturb nearby residents. She does not support offering the conference room for free to non - profits because she believes there are too many groups to accommodate. Davis suggested putting some donation packages together which would include a certain amount of free rentals. Mielke suggested further restrictions or criteria to narrow the number of potential groups. Little suggested limiting the no -cost rental to 501C -3 groups. Anderson felt that was too restrictive and the policy should state "non- profit ". Altergott reminded Council that the free usage only apply to the conference room and not to the larger spaces such as the Heritage Room or the Atrium. Swecker supports staff s recommendation. After further discussion it was Council's consensus to accept staff s recommendation not to discount rental fees for large donors, to allow the free usage of the conference room by Lakeville non - profit groups and to re -visit this issue after the Heritage Center has been open a few more months, to determine if any changes should be considered. 6. Electrical Permit rates Dave Olson introduced Building Official Gene Abbott, who is the direct supervisor of the electrical inspector. Olson stated that the current contracted Electrical Inspector has terminated his contract with the City effective June 1, 2013. The City is advertising for RFPs to enter into a contract with a new inspector. Payment for electrical inspection services is based on receiving a percentage of the electrical permit fees. Due to Lakeville's permit fees being some of the lowest in the state, the position is less appealing to potential applicants, making it difficult to attract and retain a new contract electrical inspector. A survey of 13 cities' fees shows various permit fees being charged. Olson stated that most cities adopt the State of Minnesota fee schedule and keep City Council Work Session April 22, 2013 -4- pace with the State as their fees are raised. Staff is asking Council to consider the following three options: 1. Maintain the existing fee structure; 2. Increase the fees to a higher level, but remain lower than the State fees; or 3. Adopt the State fees schedule for residential electrical permits. This is staff s recommendation. Staff is recommending the commercial /industrial and multi - family permit fees stay the same, which is below the level charged by the State. Olson stated that if the proposed fees had been in place during 2012 it would have resulted in the City collecting an additional $17,000 in electrical permit revenues, a 16.6% increase. Increased fees are proposed to be effective as of July 1, 2013 in order to provide adequate notice of the increase to contractors. Abbott stated that he has received unfavorable responses to a letter which was sent to electrical contractors who might potentially submit an RFP due to the current fee structure. Prospective contractors are not attracted to the position due to limited income potential. Mielke added that the City recently became aware of this situation when the current contractor submitted his resignation. He believes that in order to incent potential bidders it is important to inform the bidding pool of Council's consideration of a revised fee schedule. Anderson stated that he is surprised that the City has fallen so far behind in the fee structure. This has been a disservice to the existing contractor; however there has been some savings. The fees clearly need to be raised He stated that the City needs to make conscious business decisions regarding pricing and a competitive analysis should be done regularly. Anderson asked if the fees would increase for someone who has already submitted an application for their project. Mielke stated it is the date that the permit is pulled. Swecker added that at the time Council made the decision to subcontract electrical inspections, they believed that this was the best method to maintain control of the process and provide better inspection services. Council also had a very high sensitivity to increasing fees for developers. LaBeau stated that she is frustrated that the City retained an electrical inspector on staff for a couple of years longer than would have been necessary and could have been saving money. She also believes that the City did not do its due diligence to set the fees appropriately and could have kept a good contractor. The City needs to watch to make sure they are in line with other cities and on top of things; being on the cutting edge but still in line with everyone else. She would support a fee increase and believes the July ls` effective date is reasonable and would be the norm in the industry. Mielke stated that the City was able to keep permit rates low and still make money when new construction volume was high and there were fixed costs with an in -house electrical inspector. City Council Work Session April 22, 2013 -5- At some point it could be advisable to return to that system. The fact that the City is preparing to increase fees as part of the 2014 budget would not have altered the decision of the current contracted inspector, since there were additional factors in his choice to take fulltime employment somewhere else. The last year or two of having an inspector on staff the city did lose some money by having a fulltime person. This ebb and flow needs to be watched more closely. There has been a concerted effort to remain sensitive to the business community. LaBeau stated that she totally supports an increase and believes the city can come out better. The business community has to understand there needs to be an increase. She is not opposed to a city employee but doesn't want to get trapped into a vulnerable position of laying someone off. Little supports an increase and believes that as a city service the quality is more important than being a revenue generator. He believes a city employee is best able to deliver the highest quality. LaBeau said she is not about making money but is more opposed to spending more for an employee. She believes a contracted inspector is the best option because they are under the gun to respond quickly and have better accountability. Once someone gets on a payroll they have less of an incentive; subcontractors have a much tighter leash. Davis also supports the increase and wishes to stay comparable with other communities. Staff is requesting City Council hold a public hearing at the May 6, 2013 meeting to consider a change in the ordinance to increase residential electrical permit fees. There was consensus by the Council to increase residential rates as presented and to review the State fee schedule annually. 7. CDA use of CDBG funds Dave Olson stated that the former Senior Center building on Holt Avenue was sold last December for its appraised value of $345,000. When the Senior Center was originally built it was funded partially by Community Development Block Grant (CDBG) funds from Dakota County. Due to the building no longer meeting the CDBG program objectives, the City is required to reimburse the program in the amount of $119,888. This amount will remain in the City's CDBG account with the CDA to be used for future CDBG projects. The CDA is asking that the city allocate the funds to renovations and improvements of the 8 -unit public housing rental townhome project on Ideal Way, west of Dodd Boulevard. The project is approximately 30 years old and needs exterior renovations including shingles, gutters, siding, overhead doors, lighting and landscape improvements. Allocation of the funds for this project would meet the specified criteria for use since the project would provide necessary improvements to existing affordable housing units, and would result in a timely expenditure of the grant funds. The County also has some existing TIF funds available which could be used for this project; however, staff prefers setting those less restrictive funds aside for future projects, possibly in the downtown area. City Council Work Session April 22, 2013 M Staff is recommending the Council support the CDA's request to allocate the CDBG funds to rehabbing the CDA -owned public housing located on Ideal Way. Anderson asked where the actual funds would come from since the Senior Center was sold on a contract for deed. Olson stated there was an up -front down payment from the buyer which would adequately cover this cost. Anderson also asked if there was a cash reserve as part of a homeowners association and feels some kind of vehicle should be in place to set aside funds for these improvements. Olson stated that subsidized renters do not generate cash flow in the same way as privately owned housing. The CDA has paid 100% of both the downtown house and the house on Hwy. 50 recently purchased by the City of Lakeville for demolition. Before making a decision on using the CDBG funds for these improvements and future projects Council members would like to receive information regarding any CDA maintenance reserve funds and, if they exist, how they are disbursed. Staff will obtain this information and forward it to the Council. 8. Discussion of Finance Committee There is currently one vacancy on the Finance Committee and there were no applications received as a result of advertising earlier this year. It was suggested that Council members and Finance Committee members consider potential candidates and recruit to fill the regular position only, leaving the alternate position open. The regular position will also be re- advertised in "Messages ". Candidates for the current opening can be Lakeville residents, or Lakeville business owners who do not live in Lakeville. LaBeau recalled that there was one candidate from the original list who Council might reconsider. Staff will provide the original list of candidates. It is the Council's duty to set the vision and determine the financial direction and goals of the City. The Finance Committee functions to provide meaningful advice to staff and Council to assist in achieving those goals. Members of the Finance Committee have diverse backgrounds and skills, but none had government finance background when appointed. They have all acquired knowledge in that area with the help of Finance staff. The committee recently provided positive feedback on the City's health insurance structure and will be assisting with a Liquor Fund business plan and a long range strategic financing plan for street improvements. Mielke suggested that a committee member who has a communications and /or marketing background might be an asset in the area of public education. As a former Finance Committee member Anderson believes this advisory committee offers a unique opportunity for Council to receive ideas and direction and to provide support for staff work within the guidelines of the resolution. He believes there is a need for better communication between the Council and the committee and suggested the committee chair visit a work session on a regular basis. Swecker believes the committee should continue to work on long -range financing methods and funding for upcoming recommendations from the community visioning process. She believes the duties and goals set forth in the resolution City Council Work Session April 22, 2013 -7- continue to accurately reflect Council's intent for the committee. LaBeau believes the committee encourages additional trust in government and should be utilized as planned. Council agreed that the Finance Committee should continue to advise Council as directed in the resolution establishing duties and goals of the committee. 9. Other Anderson has received some questions regarding the Co. Rd. 50/60 study and asked when it will be available for review. The study will be available this spring but the soonest the project could be constructed would be 2016. Anderson stated that it is difficult for him to get to the work sessions by 6 p.m. Davis agreed that a later start time of 6:30 would also be helpful for him. Personnel Committee members Swecker and LaBeau discussed the process for the annual evaluation of the City Administrator. In the past, the Personnel Committee has conducted the evaluation, and then solicited further input from the full Council. Council will strive to conduct more consistent annual evaluations. This year's process will begin in July. 10. Adjourn Mayor Little adjourned the meeting at 8:35 p.m. Respectfully submitted, J Hawkins, Deputy Clerk 7/� -40�� Matt Tittle, Mayor