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HomeMy WebLinkAbout07-22-13 WSCITY OF LAKEVILLE CITY COUNCIL WORK SESSION MINUTES Monday, July 22, 2013 Mayor Little called the meeting to order at 6:30 p.m. in the Marion Conference Room at City Hall. Council Members Present: Swecker, LaBeau, Anderson, and Davis, and Mayor Little Staff Present: Steve Mielke, City Administrator; Dennis Feller, Finance Director; Chris Petree, Public Works Director; Zach Johnson, City Engineer; Cindi Joosten Human Resources Manager; Sue Palm, Communications Manager; Judi Hawkins, Deputy City Clerk 2. Citizen Comments There were no citizen comments. 3. Transportation CIP a) Accelerated Street Reconstruction Plan Chris Petree stated that the initial Transportation CIP was discussed by Council at their May 28, 2013 Work Session. At that time the possibility of accelerating the Street Reconstruction Plan as part of the 2014 -18 CIP was discussed. An increase in annual expenditures from $6.3 million to $8 million for each of the next five years would improve the City's OCI rating to an acceptable level in all but five to six miles of roadways. The revised CIP includes $92.3 Million in projects including street reconstruction, collector road reconstruction, pavement management such as seal coating, and non - programmed projects including CSAH 50, Dodd Blvd., extension of 175 Street, and 172n /Keokuk. LaBeau asked about the status of the three homes with driveways onto Dodd Blvd. Mielke stated that purchase of the three properties would be preferred, but if a purchase agreement cannot be reached, the County will acquire right of way only. The estimated cost of the project includes the right of way acquisition only. The Finance Committee concurs with staff s recommendation to special assess benefited properties adjacent to collector road reconstruction projects and to finance the City's CIP costs with long term debt to be repaid with property taxes. Staff is also recommending Council amend the Assessment Policy to address reconstruction of collector roadways. This will be discussed under agenda item 5.d. The Finance Committee also believes this is a favorable time to incur debt to accelerate the reconstruction program. Some of the street reconstruction will need to include utility and infrastructure upgrades. There may also be special circumstances in the North Lake Marion neighborhood where City Council Work Session July 22, 2013 Page 12 streets were not necessarily built according to the plat. A revised map showing year by year proposed accelerated and re- prioritized projects was reviewed and discussed by Council. The accelerated program includes 43 miles of streets, compared to 34 miles on the original plan. Anderson asked if there are OCI benchmarks in other communities. Petree said neighboring communities' OCI numbers are slightly higher than Lakeville; however, the proposed reconstruction will reduce the number of miles of failing roads in Lakeville from 36 miles to about six miles. Petree stated that the City's overall OCI is just below 70 at this time and he would expect to see that raised to an average of 75 or over. Dennis Feller discussed financing the City's share of the accelerated street reconstruction program. The Finance Committee recommended extending the term of the maturity schedule so there is no significant net increase in the tax levy. Swecker asked what are the cost and the rate of the extra three years. Feller will provide that answer at the July 24th budget session. LaBeau stated that if interest remains near its current rate, homeowners would save in the long term. Design standards today are of a higher quality than when the roads were initially constructed, which should help them last longer. Swecker stated that in past practice Councils have attempted to maintain a steady tax rate to avoid spikes and valleys in the tax levy. Mayor Little asked what impact increased interest rates would have on the CIP. Feller stated that if the interest rate goes up the tax levy would increase by a comparable amount which would pay for the increase in costs, or projects could be cut from the program. Little believes Council should discuss available options in order to have a plan in place in the event interest rates increased significantly. Davis agreed there should be contingencies. Feller will provide statistics at the budget work session. Anderson asked if the City can somehow take advantage of the current favorable rates. Feller stated that the project must be ready for bidding, with public hearings completed and project ordered before bonds can be sold. Feller stated that following a discussion with Moody's regarding Lakeville's credit rating, he had asked Springsted to provide information on why the City is not rated AAA and how the rating could be improved. Feller stated that cities that are rated AAA are considered more credit -worthy and receive more favorable bond ratings. Springsted's response was the amount of per capita debt and the amount of taxes that pay for debt. Feller suggested Council consider setting a goal of eventually funding street projects on a pay -as -you go basis, which could help the City to achieve a AAA rating and significantly reduce interest City Council Work Session July 22, 2013 Page 13 costs. Staff will also bring this to the Finance Committee for a discussion. Feller will bring some conceptual numbers to the Council at the July 24 budget meeting. Petree stated that if the Council is supportive of the accelerated reconstruction program staff feels it is necessary to move forward with scheduling neighborhood meetings for the 2014 project areas, so there are no delays. b) County Road Improvement Projects Staff recommends two of the four unprogrammed projects identified in the May draft of the CIP be programmed into the 2014 -2018 CIP: improvement of CSAH 50 to a four -lane divided roadway from 185 Street to Dodd Blvd. for construction in 2017 and improvement of CSAH 9 (Dodd Blvd.) to a four -lane divided roadway from 194th Street to 185`h Street for construction in 2018. Mielke stated that staff had received a copy of a resolution adopted by the ISD 194 School Board to support the CSAH 50 project and the financial participation of the City and the County. Feller stated there are several limitations on how the debt for these projects is financed. The Finance Committee is requesting that they be paid for with non - property tax sources. Both projects are proposed to be financed with Municipal State Aid leveraged with Dakota County Advance financing, as recommended by the Finance Committee. c) Special Assessments for collector road reconstruction projects Staff and the Finance Committee concur that benefitted properties should be specially assessed for collector road reconstruction projects. This policy will be discussed later. d) Revenue Alternatives The Finance Committee had also looked at revenue alternatives and recommended levying property taxes to finance street reconstruction in place of imposing utility franchise fees. The committee further recommended the Council defer discussion of appropriation of other unencumbered fund balances or liquor fund revenues until presented in conjunction with the 2014 proposed tax levy and 2014 -15 budget. Council members believe there may be an opportunity to build a reserve fund over several years which could be used to pay for reconstruction projects as they are needed. They feel this could be achieved with unencumbered General Fund balances and a predetermined portion of the Liquor Fund. LaBeau suggested the Council commit a certain amount of unencumbered funds to a pay -as- you -go street reconstruction financing program. Petree stated that the next steps would be to approve an amended special assessment policy at a future regular Council meeting; to direct staff to hold neighborhood informational City Council Work Session July 22, 2013 Page 14 meetings for 2014 street reconstruction project; and to approve the revised CIP which includes the two unprogrammed improvement projects, CSAH 50 and CSAH 9, and the accelerated street reconstruction program. LaBeau feels it is important to have some resources available in case the project costs increase. Petree discussed an assessment policy which would fund mill and overlay projects. This is not a new policy, but it has not been used in recent years. Little stated that staff needs to be very clear with information which is provided to residents to avoid confusion regarding assessments for reclamation projects and mill and overlay projects. Council members expressed that they would prefer to look at the entire budget before deciding whether to proceed with the accelerated street plan. Staff would like to receive direction from the Council soon in order to begin scheduling neighborhood meetings. Davis concurred and would want to see the catch -up and financing plans. 4. Traffic Control Device Policy Chris Petree stated that according to rules enacted by the Federal Highway Administration the City has developed a Traffic Control Device Management Policy based on rules in the Manual on Uniform Traffic Control Devices (MUTCD) which state that by June 2014 cities must have a policy designed to maintain sign retro- reflectivity at or above the established minimum levels. Signs that do not meet the minimum levels need to be replaced on a schedule based on resources and priorities as outlined in a policy rather than on compliance dates. The Federal Highway Administration requires that all lane markings be replaced every four years, however, Lakeville currently replaces them every two years. There is no further budgetary impact as a result of this policy. Council directed staff to place the Traffic Control Device Management Policy on a future regular Council agenda for formal approval. 5. Policy Manual Updates: The Lakeville Policy Manual is comprised of policies from all City departments, each of which has been reviewed and approved by City Council. At this time Council is being asked to review several policies. The City Attorney has also reviewed the policies and recommends Council approval. a) Communications Communications policies include guidelines for City Access Cable Channel 12 (a new policy); City Government Television (LGVV), the City website, City website calendar, News Releases and the Media (a new policy); and Social Media. Communications Manager Sue City Council Work Session July 22, 2013 Page 15 Palm answered questions regarding content policy, activity by political candidates, etc. Council members requested that throughout the document where it mentions videos, disks, DVDs, etc., the language refer to it as "storage media ". The News Releases and Media section defines the acceptable practices corresponding with the media. b) Information Systems IS Manager Danny Barth stated that the most significant changes in the IS policy are the addition of Smart devices and technology, and a change in the retention of electronic mail. Council asked questions regarding personal use of city -owned equipment, lost or stolen equipment, and repercussions of inappropriate use. Staff is recommending a professional be retained to educate employees on proper practice. c) Professional Development Human Resources Manager Cindi Joosten stated that Council is being asked to reinstate professional development which was removed from the budget several years ago. This would include staff staying up to date on regular licensure and profession, customer service, in -state and out of state conferences for directors. Staff would also like to prepare a succession plan for staff who could be retiring. LaBeau suggested the policy specify that a report be submitted by staff members who attend a conference. Other council members believed that could be left to staff and the directors and not made part of the formal policy. Anderson suggested the words "if budgeted" replace "as budgeted" thereby sending a message to employees. d) Special Assessment Policy for Roadway Rehabilitation This policy relates to cost participation in funding of improvements in collector roads and costs for various projects. LaBeau asked to change the language for multi -unit structures to "Townhomes and Condominiums ". 6. Police Chief Recruitment Process Steve Mielke stated that Lakeville is a Plan A Statutory City which gives City Council the authority to hire and fire employees; however, in past practice during his tenure at the city, for the hiring of department director positions the Council has delegated the responsibility to the City Administrator. Council's involvement in the review and interview process has included participating on an interview panel and offering input regarding candidates. The City Administrator's role in hiring department directors has been to coordinate the process, supervise the consultant, and ultimately make a recommendation to the City Council based on input received from individual Council members, department personnel, and outside resources. This process is subject to change at the discretion of the Council. An executive search is expected to cost approximately $15- 20,000 to fill this high profile position. Mielke asked for feedback from the council regarding what role they would like to play and what City Council Work Session July 22, 2013 Puae 16 level of involvement they desire. He believes the successful candidate should have a clear understanding that he is their supervisor but that the Council is ultimately in control. Swecker stated that she likes the interview panel method of getting to know the candidates and wants to have some input, but it is ultimately the City Administrator's decision, since he is their supervisor. Davis also likes the interview panels for the purpose of getting different perspectives and seeing the candidates in a variety of circumstances. Anderson supports using an outside search firm but suggested the Personnel Committee be involved and work with the City Administrator. He would like Council to meet the prospective candidates, provide support to the City Administrator, but have the ability to inform the Administrator of candidates the Council would not support. Mielke discussed the proposed steps he is planning to use to accomplish hiring the new Police Chief. Basic steps will include creating a profile of the ideal candidate and conducting an analysis of the position. Anderson suggested these tasks be accomplished with the assistance of the Personnel Committee. LaBeau stated that because of the high level of this position she does not believe she has ample background to make a decision. She believes it is important to have a good Interim Chief lined up. Swecker agrees a good Interim will be important so the process can work itself through without being rushed. Little believes the Council should enter into the process after the field has been narrowed to a few finalists. At that point the City Administrator would seek individual perspectives from each of the Council members, without asking for a recommendation, and then add that to thoughts and opinions he receives from other sources as he considers his decision. In summary, the Personnel Committee will help guide the process, work with the search firm consultant in establishing the candidate profile, community profile and job description. The search firm will then recruit candidates and conduct initial interviews in order to provide a list of 10 -12 final candidates. Working with the Personnel Committee the City Administrator and Human Resources Manager would then narrow that list to no more than six to be interviewed. Following the interviews the list will be narrowed to two or three candidates who will go through final analysis, before a recommendation is made by the City Administrator. Mielke will work with the current Chief and HR staff to determine an Interim Chief to serve during the process. 7. Charter Franchise Renewal Update Communications Manager Sue Palm provided an update on the City Cable Television Franchise agreement with Charter Communications which will expire on October 28, 2013. In 2012 City Council approved four needs assessments along with the funding to complete the assessments. The purpose of the assessments was to determine if Charter is meeting the City Council Work Session July 22, 2013 Page 17 current franchise requirements and if there are needs that are not specified in the franchise. The first assessment was a franchise fee desk review or audit. The City receives 5% of the Cable TV portion of the franchise, but no portion of Charter's internet or phone service. A small discrepancy was discovered as part of the audit. The second was a community survey. Charter was rated lower than similar companies in the customer service area, but program selection was rated well. A PEG (Public Education and Government) access review looked at whether the obligations in the franchise are being met. Negotiations will include a request for an additional open channel for ISD 192 school programming. There are non- compliance issues that were discovered as part of the technical review. LaBeau asked if Charter would be more diligent if there was a provision in the contract to allow an audit to be conducted more often. Palm stated that the City is entitled to conduct an audit any time so this would not be an incentive. The Cable TV Board has been working with Franchise Attorney Brian Grogan and staff to prepare for negotiations which will begin in August. An extension of the current franchise contract will likely be requested. Some upgrades will be needed to City and School buildings and equipment as Analog channels will all be changed to Digital in the future. Anderson asked for an explanation regarding the lack of Cable television service options in the City of Lakeville. Palm stated that by law any new provider must meet the same conditions as the existing provider, which would mean they would need to provide fiber for the entire community. About 11,500 homes, or half of the homes in the city, are Charter cable TV customers. 8. Other Ipava Avenue crossing at Eastview Elementary. Mielke stated that several residents attended the July 15 1 Council meeting to make staff and council aware of a bicycle accident on Ipava Avenue near Eastview Elementary on Friday, July 12 and to request some type of improvement that would increase safety of those who attempt to cross Ipava at that location. Mielke stated that traffic volumes on Ipava have increased with the construction on Dodd and Highview but with the growth this could be a more permanent situation. There is currently a 4 -way stop at 175 and Highview which is close to maximum capacity. A traffic study is being recommended for the entire area after Dodd / Highview is back open and school is back in session, possibly in October. Police presence has been increased but they have not reported excessive speeding in the area. A changeable message board or speed trailer will also be used intermittently for driver awareness. Staff will attempt to set up a list -sery so residents can stay informed. City Council Work Session July 22, 2013 Page 18 LaBeau stated that she had been contacted by several residents who were appreciative of the added police patrol. She had suggested to them that while they are determining what, if anything, can be done with a mid -block crossing, it would be safer to use the crosswalks at either 175 Street or 185 Street. Staff will speak to Eastview school officials regarding additional crossing guards. A traffic study will focus on pedestrian movement as well as the 175 Street /Ipava Avenue intersection. I -35 Improvements through Lakeville Mayor Little stated that MnDOT has released their 20 -year plan for I -35 improvements; however, the section through Lakeville was not included. A letter is being prepared to officially acknowledge this oversight and request reconsideration of a third lane. Anderson stated that Lakeville is on the I -35 Solution Alliance's priority list for the next five years and possibly a discussion with State Representation Holberg might be helpful. Zach Johnson stated that they will be meeting with MnDOT later this week. Minneapolis Meeting Room Council members asked when this CUP would be reviewed by Planning Commission and Council. Mielke indicated that it was on the July 25 1 Planning Commission agenda. 9. Adjourn Mayor Little adjourned the meeting at 9:35 p.m. Respectfully submitted, Ju awkins, Deputy Clerk Ma Little, Mayor