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HomeMy WebLinkAbout08-26-13 WSCITY OF LAKEVILLE CITY COUNCIL WORK SESSION MINUTES Monday, August 26, 2013 Mayor Little called the meeting to order at 6:30 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; Chris Petree, Public Works Director; Allyn Kuennen, Administrative Services Manager; Dennis Feller, Finance Director; Judi Hawkins, Deputy City Clerk 2. Citizen Comments There were no citizen comments. 3. Red Line Market Study Results Allyn Kuennen introduced William Reynolds from Kimley -Horn, and Joe Morneau from Dakota County Office of Transit. Kuennen stated that since January Dakota County and several cities, including Lakeville, have participated in a study to explore how Bus Rapid Transit (BRT) will impact development along Cedar Avenue, which is now called the Red Line corridor. The study was funded by a Corridor of Opportunities Grant from the MN Dept. of Housing and Urban Development, which was administered by the City of Apple Valley. Morneau stated that the Metro Red Line opened on June 22nd and is the state's first BRT system. Five stations will provide 15- minute service all day during the week and 30- minute service on the weekends. The primary objective is to maximize the investments which have been made in light rail and BRT in the region by promoting development patterns for better access to jobs, services, etc. The Met Council plans to extend BRT service into Lakeville after 2020. Currently service is provided to the Cedar Park and Ride in the morning and in the late afternoon. Reynolds stated that one of the objectives of the study is to find ways to promote Transit Oriented Development (TOD) along the corridor adjacent to the Red Line station areas. In order to do this it is important to understand how BRT could drive development changes. Public open houses were held in April and August. Amenities that will encourage ridership of the BRT will include trail connections, parks, and businesses. The Met Council estimates that Lakeville will have 11,000 new dwelling units in the next 20 years, 10 -15% of which will be TOD. Development of affordable housing near LRT and BRT stations will encourage development of other amenities. City Council Work Session August 26, 2013 Page -2- The market study determined four main corridor -wide strategies to encourage TOD along the Red Line: 1) Increase the success of the Red Line BRT by marketing its benefits, improving pedestrian and bike crossings along Cedar Avenue, and offering incentives for transit and bike use. 2) Define and market the assets of the corridor by identifying possible redevelopment sites, mixing affordable housing with market -rate housing, and encouraging street -level retail. 3) Undertake collaborative initiatives and develop partnerships for promoting a unique Red Line corridor identity. 4) Explore new finance tools using special service districts, TIF districts, state bonding, and special assessments for transit improvement areas. Reynolds described the diverse station typology along the Red Line. The stations range from being regional, suburban, and neighborhood transit stations. Lakeville's 181 Street station is near undeveloped land, which is an advantage for planning purposes. Challenges with the station include preservation of future development opportunities. The study recommends higher residential density and addition of pedestrian /bike connections in nearby developments. The study finds that the Red Line BRT will not drive development near the 181St Street station but could provide a competitive advantage in TOD development. Swecker asked if the development community has commented or expressed an interest in the area of 179 and Cedar. Morneau stated that the developers have expressed support of mixed use and higher density. Reynolds added that land can be guided so connections to the transitway are not limited; however, proposed developments could see competition from other suburban transit lines. Mielke stated that it seems contradictory to encourage high density before BRT services are available, and questioned what comes first, land use or transit. Reynolds stated that it might be possible to extend the BRT earlier if there is an effort to get TOD around the station. LaBeau asked about the formula for determining how much each city is charged for BRT service. She believes the Met Council is utilizing outdated figures and doesn't want development to be over - calculated and the City to be over -taxed for the service. Reynolds stated that the figures were based on developed land in the area and from projections from Met Council. LaBeau stated that the undeveloped properties stand to benefit the most. Davis stated that the land near the station is in the Urban Reserve and has been discussed by the Planning Commission for several years. Kuennen added that the area is to be discussed as part of the Comp Plan review which will begin in 2016. City Council Work Session August 26, 2013 Page -3- Anderson stated that it would be helpful to have a better understanding of what can be learned from other outer tier suburbs that have dealt with similar situations. He would like to have a land use plan in place before the development discussions occur. Mielke asked Council members if they wish to pursue the TOD special area plan and strategy, realizing it will be a commitment of time and resources. The study noted that light rail will drive development and BRT will compliment development. In order for the strategy to be successful, the landowners also need to be willing to follow a guided plan, as laid out by the Council. The land is currently bank -owned and potential buyers should be informed of pending changes to zoning and land use patterns. Mayor Little believes the character of the City needs to be maintained and more market research should be done with potential developers. He asked for further explanation regarding the comments about speeding up the process if there was a potential for development. Metropolitan Council representative Wendy Wulff stated that they are working on getting new official figures that can be used to make projections as accurate as possible. She believes it will take the City's full effort to develop the plan, including financial commitments. Wulff stated there may be opportunities for Livable Communities Grants available through the Met Council. Davis believes the market should dictate what develops in the area and additional work is needed to be done by the City. 4. Water Supply Plan Update; and 5. Water Treatment Facility Expansion Study Chris Petree introduced Scott Fronek of Black & Veatch and John Chlebeck of SEH. SEH has worked on Lakeville's Water Supply Plan Update and Black & Veatch has worked on the Water Treatment Facility Expansion Study. Previous growth pattern projections did not occur, however, with the economic recovery, growth is returning and the City needs to plan for future water needs. The major function of water treatment is removal of iron and manganese, which cause rust and undesirable odors in the water. Water from the various wells comes into the WTF, is filtered and cleaned, chemicals are added, and the water is stored in the clearwell. It is then pumped through the distribution system into the water towers. The WTF opened in 1998 and has a current capacity of 20 MGPD, which is approached on days of high demand. The facility's ultimate expansion from eight filters to 12 filters was planned for in the initial design. The objectives of this study are to determine future requirements for quantity of water, water supply infrastructure such as wells, treatment facility improvements, distribution facilities such storage, trunk lines and towers, and how to deal with potential water - related emergencies. Scott Fronek discussed how water needs have increased with the population growth. In the 2010 Metro Area Master Water Supply plan the Met Council projected much higher than the typical 2% City Council Work Session August 26, 2013 Page -4- growth rated for Midwest communities. Lakeville's current average water demand is approximately 118 gallons per person per day. John Chlebeck provided an overview of water supply. There are two aquifers which provide water to Lakeville. Most of the Lakeville wells, in addition to several other cities' wells, are tapped into the Jordan Aquifer. Two Lakeville wells are tapped into the FIG Aquifer. The FIG wells are deeper and produce less water, but add diversity to the water system. LaBeau asked about the wells which are not listed in the system. Petree stated that two wells have been sealed and two wells do not go to the WTF. New wells that are built are given a new number, numbers of former wells are not re -used. Depth of an average Jordan well is 550 -650 feet; the deepest FIG well is 800 feet. The WTF was built to accommodate growth and higher capacity and was expanded in 2001. Little asked what would happen if supply did not meet demand. Chlebeck stated that a plan is in place for emergency conservation measures which includes no lawn watering and strict enforcement of water restrictions. In an emergency Wells #3 and #7 can pump directly into the system. Based on projections, two more wells will be needed in approximately five years. There are two potential locations available to put new wells close to existing wells to make the best use of existing infrastructure. As part of the current Dodd /Highview project the infrastructure has been put in place for two future wells. Proposed sites are currently owned by the City and meet the necessary site guidelines. A pilot study which has been approved by the MN Dept. of Health has shown that the capacity of the WTF could be increased to 26.5 MGD by increasing the filter loading rate. Based on projected growth, expansion of the WTF could be pushed out for approximately six years with minimal improvements. One more bank of filters can be added, which will be the maximum possible for the facility. The original plan for the WTF was to ultimately treat 30 MGD, with an additional facility off -site which would treat an additional 10 MGD. This will also not be necessary with the new filter loading plan. Population growth areas will be tracked for planning purposes. Fronek estimated that $30 -40 million would be saved in operating and capital costs by not needing to build a second facility. Space is also available to double the reservoir capacity from 3.1 MGD to 6.2 MGD. Staff and consultants are recommending focusing on the build -out of the existing facility to increase to its ultimate capacity. There are three different pressure zones within the city which provide equal water pressure. Elevated water storage serves as emergency reserve, water for fire protection, and to equalize demands on the system. Existing storage is approximately. 75 MG short of optimum. A 1.5 MG elevated storage tank is being proposed to fill the current shortage and meet future needs. The City Council Work Session August 26, 2013 Page -5- proposed location is near the center of the city, at approximately 190 Street and Highview Avenue. Undeveloped land is available in that area and it is near new development; approximately one acre is needed. Petree stated that hydraulically the land elevation is very workable. Swecker asked if there are connections with neighboring communities. Petree stated that they would only be used in an absolute emergency because of differing water pressures. Petree explained how different zones would be combined in order to eliminate the need for replacement of the Airlake tower. Petree encouraged Council members to contact him directly with any questions. 6. Utilities CIP Chris Petree discussed CIP items: sanitary sewer trunk extensions and oversizing; lift station rehabilitations; replacement of lift station #6 which is approximately 40 years old; sanitary sewer rehabilitation which is completed along with street rehabilitation when necessary; and some maintenance to mitigate effects of I & I. Two wells are programmed for 2014 and two for 2015, depending on the population growth. Up to six new wells will be needed after that. Cost for the elevated tank which is being proposed is approximately $3M including land acquisition. It is recommended that the process begin as soon as possible since a water tower project can take 18 -24 months. Swecker asked when the last elevated tank was built. Petree stated that the last one built was in 2005. Historically a new tank has been needed every 10 years. Restoration and rehabilitation of wells is also needed every eight to ten years. The water meter replacement program continues with 4,500 of 18,000 replaced. Staff is recommending the replacement rate be escalated. The budget proposes to install a transmitter system for drive -by reading of the new meters. Currently the drive -by reading system is only used in commercial /industrial properties. A fixed -base system was evaluated several years ago and for several reasons the idea was abandoned. Swecker asked for a cost analysis and rate of return for the drive -by system. LaBeau asked about the apparent inconsistency in the revenue portion of the meter budget. Feller stated that at this time the Council is only looking at a portion of the budget and not the entire operating fund. The rest of the budget will be discussed at the budget meeting. Petree also discussed the effects of the watershed on the Utility CIP. An expenditure of $25,000 from the Environmental Resource Fund is being proposed to complete a feasibility study to stabilize the banks of the South Creek. Dennis Feller reviewed the budgets of the three trunk funds. City Council Work Session August 26, 2013 Page -6- 7. Burying of Power Lines Ordinance Allyn Kuennen stated that historically when developments abut power lines, developers have been required to bury the lines. Recently a developer questioned the authority of the City to make this requirement. It is the opinion of the City Attorney that the authority exists; however, he recommended some additional specific verbiage in the ordinance. The original letter from the City Attorney contained an error; Council received a correct copy. LaBeau stated that she believes the utility companies should be responsible for the costs since it will be their new customers. Mielke stated that the utility companies operate under a franchise agreement which does not include a requirement for them to pay for burying the lines. LaBeau stated that Council could require that the costs be assessed to the entire community. Swecker stated that the cost of burying the lines is built into the development and others in the community have already paid for their lines. LaBeau would like to do more research before this is put on a regular agenda. Mielke referred to the 190`'' Street development project and suggested an alternative might be to assess the benefited property owners as part of the street improvement project. He stated that the value of burying lines is not only aesthetic but also safer. Neighborhoods with buried lines also experience fewer power outages. The development agreement has not been finalized. Council directed staff to add this item to a regular agenda following receipt of LaBeau's research. 8. Other Mielke updated the Council on the successful DLBA Block Bash which was held on Friday, August 23. Participation exceeded expectations. 9. Adjourn Mayor Little adjourned the meeting at 9:15 p.m. Respectfully submitted, J d' Hawkins, Deputy Clerk Ma Little, Mayo