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HomeMy WebLinkAbout03-24-14 WSCITY OF LAKEVILLE CITY COUNCIL WORK SESSION MINUTES March 24, 2014 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; Dave Olson, Community and Economic Development Director; Chris Petree, Public Works Director; Zach Johnson, City Engineer; Allyn Kuennen, Administrative Services Manager; Judi Hawkins, Deputy City Clerk Absent: Council Member Swecker 2. Citizen Comments There were no citizen comments. 3. Menasha Expansion Project TIF Dave Olson introduced Shannon VanDyke and Brian Gustavus representing Menasha Packaging Co.; Jack Matasosky, APPRO Development; and Mikaela Huot, Springsted Inc., assisting the City with the creation of a TIF District. Mr. Gustavus stated that Menasha has been a family-owned company since 1849 and was one of the first businesses in Airlake when they built their facility in 1968. They currently employ 221 people in Lakeville with an annual payroll over $15M. As a result of its considerable growth Menasha is in need of additional manufacturing, warehouse, and office space. The proposed plant expansion would add 123,000 square feet to their existing facility, as well as 15 new full-time positions. Menasha has reached capacity at all of their facilities and has requested TIF financing to assist in a proposed $1.3 million expansion of their Lakeville facility. The project is within the designated redevelopment project area of Airlake Industrial Park. Springsted has prepared a Tax Increment Financing Plan on behalf of the City. The County Assessor's office projected an estimated market value of $8-8.75 million following improvements and expansion of the property. Based on this range of market values, the amount of available tax increment that would be available to assist the project using a pay-as-you-go method using 95% of available captured increment is estimated between $527,000 and $626,000 over nine years. Current taxes of $4,477,000 would be frozen and would continue to be paid to various jurisdictions. Staff believes the level of financial assistance is appropriate and is consistent with current Business Subsidy and TIF policies. In addition, helping to facilitate the company's expansion will help keep jobs and taxes in Lakeville. A public hearing is scheduled for April 7, 2014. Staff is requesting Council consider the approval of both the new TIF District and the development contract with Menasha specifying the responsibilities of all parties. The City Attorney and Springsted have reviewed the contract and recommend approval. City Council Work Session Minutes Page 2 March 24, 2014 Council Member Anderson asked what the purpose of moving the rail spur. Gustavus stated that moving the rail spur would allow continued growth in manufacturing without dividing the buildings. Jack Matasosky from APPRO Development stated that the ability to relocate the rail was a big factor in the decision. Major soil corrections will be necessary in the expansion area, which is detrimental. Ms. VanDyke stated that this is the last expansion that will be possible at this location, since there is no additional available property; the proposal will be brought before the board for review Council members expressed their appreciation to Menasha for choosing Lakeville for their expansion. The Economic Development Commission will review this proposed project at their March 25`i' meeting. The County Board will also discuss this on March 25; however, they are generally more supportive of affordable housing and redevelopment rather than Economic Development TIF Districts. The county does not have the authority to veto the project. Council directed staff to continue move forward with creation of the TIF District for Menasha. 4. Joint Finance Committee meeting Finance Committee Chair Chris Hoins and member John Tuschner joined Dennis Feller to discuss goals, purpose, and functionality of the committee and to receive any direction from Council for the coming year. Council members had received information regarding the Finance Committee's goals and accomplishments since it was established in 2011. Activities the committee regularly undertake include review of the 5 -year CIP, non -tax financing options, franchise fees, street reconstruction project financing, and review of the liquor financing policy, quarterly financial statements, and annual reports. Special projects have included the City's health insurance plan, tax structure and trends, property values, and review of the public education component of the Truth in Taxation utility bill insert. Finance Committee member Chris Hoins said that serving the Council on this committee has been a gratifying experience. He believes the committee works well with staff and he enjoys being a member of the diverse committee. It is his opinion that tasks outlined in the resolution establishing the committee provide appropriate duties and boundaries. John Tuschner agreed that his time on the committee has been a valuable opportunity. Mayor Little appreciates their work, especially the executive summaries. Council Member Anderson stated that the committee has been helpful to the community and it has been helpful for staff to listen to other perspectives, but wonders if there should be additional communication between the Finance Committee and the City Council in addition to meeting minutes containing more details. He also wonders if the Finance Committee is considering whether changes to the governmental accounting standards as they relate to pensions will impact the City's finances. Council Member LaBeau believes the Finance Committee promotes a sense of trust from the community and appreciates that the committee members have gained an understanding of the financial background and goals of the City. Some committee members have expressed frustration to her that they do not have meaningful or adequate purpose and it might be beneficial to look at other functions for the committee. She suggested that committee members provide a list of possible additional functions to Council for consideration. Council Member Davis stated that before Council considers additional functions for the City Council Work Session Minutes Page 3 March 24, 2014 committee they would need specifics. He believes that policy decisions should remain the responsibility of the Council but would appreciate the additional perspective that regular quarterly financial reviews would provide. He expressed his appreciation to the Finance Committee for their commitment. Anderson was very complimentary of the job that the Finance Department staff does but believes the Finance Committee provides a different context. He also believes that the committee does more work than what is reflected in the minutes. Davis suggested that receiving input from the Finance Committee on a 5 -year financial projection would offer Council some decision-making guidance. Tuschner added that the Finance Committee would also like to receive guidance from Council. Council Member LaBeau proposed committee members make a list of possible areas where they believe they can assist and bring their ideas and suggestions forward for review by Council. Mielke added that the committee is a valuable tool for staff to obtain additional perspectives, i.e., health insurance and economic conditions. Hoins added that feedback from the Council is very important to them. Mayor Little asked if the Finance Committee could provide a brief quarterly report commenting on inflation, cash reserves, etc., or could include current financial standings and future projections. One of the original purposes of the committee was to be a public education tool, which should also be continued. Little suggested publishing an article from the Finance Committee or possibly a quarterly report in the local newspaper and on the City website would help people be aware of the work that is being done. It will be important to continue this discussion with future communications. 5. Senior Transportation Proposal - DARTS Courtney Whited, Mobility Management Program Director for DARTS and Jess Luce with Dakota County's Communities for a Lifetime Initiative were present to discuss the Senior Transportation proposal. Dave Olson stated that DARTS is currently approaching several Dakota County cities in an effort to form partnerships for the purpose of providing senior transportation service beginning this spring. DARTS is asking each city who joins this initiative to contribute $5,000 for service through April 2015. The Metropolitan Area Agency on Aging is providing $63,000 from a federal grant received through Title III/Older Americans Act. Ms. Whited provided an overview of the DARTS organization and the proposed transportation service program for older adults. DARTS has been providing rides in Dakota County since 1974 and now provides service for Metro Mobility, which is not currently available in Lakeville. A variety of services they offer help older adults maintain their independence. The proposed additional service is referred to as DARTS Ride Connection is a more social services approach than Transit Link, which is a curb -to -curb feeder connection and requires the client and the destination to be within a half -mile of metro transit. The DARTS Ride Connection will provide door-to-door service. Fares are based on stated income and ability to pay; however, no one is denied a ride if they are unable to pay. A personal care attendant can ride for free. Service is currently Tuesday through Thursday, 7:30 a.m. to 4:30 p.m. The original grant application was for $100,000 but as the grants were awarded, the funds were spread over more grant applicants than anticipated, resulting in an award of $63,000. More funds allow for City Council Work Session Minutes Page 4 March 24, 2014 more rides within the service area which includes Apple Valley, Burnsville, Rosemount, Farmington and Eagan. Burnsville has not opted into the program; however, Burnsville residents have access to Transit Link and Metro Mobility as do older adults in Apple Valley, Rosemount, and Eagan The program is being presented to Eagan City Council this week. Partnerships for the program will be a key component. There are many avenues for disseminating information to the senior community including the City website, local newspapers, and posters and flyers at the Senior Center and local churches. Jess Luce provided basic results of a survey which was conducted by Dakota County Public Health for the purpose of understanding barriers faced by older adults regarding transportation and options they would like to have offered. Of the approximately 150 people who completed the survey about half had only been in the city for five or less years; over 50% also still owned their own vehicle; and 35% were not aware of any transportation service. Two-thirds currently used friends and family for transportation needs. Mayor Little has received approximately 40 letters from seniors; a common theme is stress and anxiety caused by the dependence on others, and a feeling of isolation. Taxi service is not only costly, but the trust level is low. It is often a difficult adjustment to move from the comfort of independence, which is frequently their only experience. Mr. Luce provided suggestions for what can be done to assist with transportation needs. Mobility Management has a website that people can use to determine their best option and would also raise the level of awareness. This makes sure that appropriate transportation can be determined with just one call by the client. Dave Olson and Brett Altergott discussed Augustana Regent's matching grant and the availability of CDBG funds for transportation for older residents. Little thanked Lakeville and Dakota County staff for their effort in helping to resolve the senior transportation challenges. Council directed staff to move forward with a Memorandum of Understanding with DARTS. 6. County 50/60 Traffic Diversion Study Chris Petree introduced the CSAH 50/60 Improvements, Project 50-17, Traffic Diversion Study, jointly prepared by the City and the County. Brian Sorenson and Kristi Sebastian from Dakota County were present to discuss the agenda item. Mr. Sorenson stated that the discussion regarding traffic implications of closing the 50/60 intersection began at the December 9 work session. Closure will take place as part of the roundabout construction in 2015. Traffic counts for the intersection are currently 30,000 per day. Signage will direct traffic to alternate routes rather than specific marked detour routes. SRF assisted with the study of impacts on alternate routes and what improvements might be needed to the alternate routes prior to the 50/60 closure. Several intersections are likely to be impacted, Ipava/ 175`'' in particular. Kristi Sebastian provided an overview of projected traffic routes and volumes. The study has caused the county to take an additional look at both Judicial Road and Dodd Road as projected alternate routes. Temporary signals are proposed at Ipava/165t' Street and Ipava/175t' Street and traffic signal timing at other intersections will also be adjusted if necessary. Ms. Sebastian stated that additional traffic control can be installed as needed after the project begins. The study also looked at whether various segments of roadway were capable of handling the additional traffic. City Council Work Session Minutes Page 5 March 24, 2014 Mr. Sorenson stated that the upcoming developments on the east side of Dodd will also impact the traffic diversions. Construction of left turn lanes at 190t' Street as part of that improvement project will be necessary. The intent is to make the necessary improvements while limiting expenses for the temporary improvements which are likely to be needed. Temporary improvements may not be built at the highest standards that would be used for a permanent project. Temporarily closing access to Chokecherry Hill at Inca and Huxley Ave. is being discussed; this would accommodate temporary turn lanes along Dodd. Council Member LaBeau asked if the elevation in that area would be changed; Sorenson stated that it would add significant cost to the temporary improvement, but might be considered when the full reconstruction takes place. Chris Petree added that they should be notified if there are safety issues with snow and ice control. Council Member Davis asked if this is a similar model used to make traffic projections on I35. Sorenson stated that this is a new model specific to this project. County staff believes this diversion plan will help to minimize the inconveniences of the closure, which is expected to last three to four months. Mr. Mielke stated that a cautious projection of four to five months is probably more prudent and realistic, in the event that weather conditions and other factors are not ideal. A public information meeting was held on March 13 to discuss options in the Orchard Trail, Java Ave., and 188''' Street area. Zach Johnson stated that at the neighborhood meeting residents overwhelming expressed an interest in having the road closed rather than having their neighborhood used as a cut - through. Based on feedback from neighbors and businesses staff is recommending road closures at 188`s Street and Kenwood Trail, and at Kenwood Trail and Jordan Trail. Residents and businesses preferred traffic have north/south access to I-35 rather than to CSAH 50. Businesses especially wish to have consistent re-routing throughout the project for the convenience of their clients. Mr. Petree stated that additional communication is needed with property owners along Kenwood Trail as well as the school district and the bus company. Signage will be an important element. Council Member Anderson isn't comfortable with a complete closure and wants to make sure that construction traffic does not get diverted into a neighborhood. He believes school bus and local traffic also needs to be accommodated. Petree stated that the critical points in the traffic diversion could be temporary or might be considered for permanent traffic control improvements. Staff would like to discuss two intersections with potential changes at a future work session. Anderson suggested that the County take a stronger financial role than the normal cost share in the improvements. He would like to have a discussion with the county about their financial support for these mitigations and not put the entire burden on the City. Council Member Davis also expressed concerns for total closure. Mr. Petree stated that the residents he spoke to were very opposed to having additional traffic going through their neighborhoods. Mayor Little asked if there was any precedent for additional financial assistance from the county in this circumstance. Mr. Sorenson stated that there is not; the Mayor conceded that it would not be an City Council Work Session Minutes March 24, 2014 Page 6 equitable use of county resources. Mr. Sorenson stated that the county is exploring the possibility of a right turn lane from Cedar to 202nd Street (CSAH 50). Staff acknowledged comments and suggestions received from Council and will continue to work on mitigation efforts. Council directed staff to prepare a joint powers agreement to define cost share and responsibilities and to place it on a regular council agenda for consideration. 7. 190th Street Improvements and Water Tower Siting Chris Petree stated that the developer of Chokecherry Hill is required to install improvements including turn lanes on Dodd and improve 190th Street to a collector road from Dodd Road to the east plat boundary of Chokecherry Hill. The developer is required to pave the remaining segment of 190th to Holyoke Avenue. Potential sites were identified for the water tower that is needed. Based on the original alignment of the roadways the City anticipated the need to purchase additional property and several lots would have been affected. Since the January work session, additional information has been gained that refines the water tower land needs. Additional concept design work has aligned the roads in a way that would allow the water tower to be built on city -owned property. The revised design maintains the existing alignment of Highview/Holyoke through the "S" curve, and sites the water tower on the northwest side of that intersection. This would also allow potential safety improvements with the addition of bypass and right turn lanes, and be more cost effective. The revised realignment provides a more long-term solution and does not require purchase of additional property in the Summerlyn development. It also allows additional screening, eliminates the need for right of way acquisition, and keeps the alignment as a long-term future alignment. It also eliminates encroaching onto the Schweich homestead. The estimated cost of the first proposal in its ultimate design with the "T" intersections and roundabouts was approximately $2.7 million. The revised option with the bypass and turn lanes and east and west roundabouts would be approximately $2M or a savings of about $700,000. Savings will also come from eliminating the need to purchase additional lots and right of way. Mr. Stanton has indicated that he is comfortable with the new roadway design. If the council wishes to continue with this design, staff recommends siting the water tower in the proposed location and placing signage accordingly to let people know it is a future water tower site. An update of the Transportation Plan will also be completed. Staff recommends constructing bypass and turn lanes at this time at a cost of $192,000 and re -allocating remaining budgeted funds to other transportation priorities. Council Member Davis believes this is consistent with the wishes of Mr. Schweich and maximizes the development opportunities for his property. Council Member LaBeau stated that Mr. Schweich had been told that some of the road was going to be paved, but that did not happen due to cost. She asked if there were funds earmarked for the paving. Mr. Petree stated that the paving would be done at the developer's expense. LaBeau asked why it was not originally known that it was an option to put the water tower on this site. Petree stated that in a very short period of time beginning in November Council approved the Water Supply Plan, which advised staff and council that a water tower was needed and identified the search area. Identifying and narrowing down the style of water tower to one with a smaller footprint and support structure, allowed more options for the road design. More information regarding the alignment City Council Work Session Minutes Page 7 March 24, 2014 of future collector roadways was also received, which impacted the design. Those key components have allowed additional flexibility for the road design. Council Member LaBeau stated that at previous meetings she had expressed opposition to purchase of additional lots for the water tower site when there was already adequate City -owned property in the area. She recommends in the future staff should look more closely at all the options and what might go on any existing land and plan ahead better. Builders and developers ask how things can be streamlined. Council Member Anderson appreciates that staff continued to work on a solution and would support this option also. It is incumbent on Council to support staff to plan for future infrastructure that might be needed and wants everyone to be aware of the impacts and maintain good relationships. Council Member Davis believes people make the best decisions with the information that is available at the time; hindsight is always 20/20. Although there were things that were realized after the planning began, there were probably some extra costs. Petree stated the additional survey work that was needed was minimal and will be beneficial in the construction. Davis thanked staff for continuing to work on the project which resulted in an acceptable long-term solution. Mielke stated that since the 2008 comprehensive transportation plan identified this corridor through Crescent Ridge, there have been changes in the actual development. Little believes this is part of the process and is a good example of council and staff working together and coming up with a good solution. Council consensus is to move forward with the option as presented, with construction of the bypass and turn lanes in 2014. Anderson agrees with the new option and wants Council and staff to learn from this experience. LaBeau stated that the developers often have had experiences in other cities that are different than Lakeville. At times they could have valid ideas that could be considered. Ms. Tammy Erickson, who was in the audience of the meeting, stated that they would like to have known that the water tower was planned to be sited at that location. She also stated that she supports the new location. 8. 2014 Update to the City's Construction Standard Specifications Mr. Petree stated that he most relevant changes which staff is recommending to the specifications are the composition of the bituminous mix design which increases resistance to thermal cracking; minimum roadway aggregate section increased to 8" which extends the useful life of the curb and gutter; and use of PVC watermain pipe, which is more resistant to corrosion and spills. Developers are using this in many cities with corrosive soils. LaBeau stated that some developers requested the use of PVC pipes several years ago and asked why the changes are being proposed now. Petree stated that staff has been reviewing the idea and is now comfortable with it. Council directed staff to move forward with adopting the proposed specification changes by placing this on a future regular agenda. LaBeau stated that she was approached with a request from a developer to provide a red -lined copy when spec books are revised. City Council Work Session Minutes March 24, 2014 9. Other Page 8 The Mattamy proposal will be presented to Council as well as the Planning Commission and Parks, Recreation and Natural Resources Committee on Monday, March 31, at 5:30 p.m. Interviews with Advisory Committee applicants will follow the presentation, beginning at 7:30 p.m. 10. Adjourn. Mayor Little adjourned the meeting at 10:25 p.m. Respectfully submitted, Ju i awkins, Deputy Clerk Mate, Mayor