HomeMy WebLinkAbout05-12-14 WSCITY OF LAKEVILLE
CITY COUNCIL WORK SESSION MINUTES
May 12, 2014
Mayor Little called the meeting to order at 6:15 p.m. in the Marion Conference Room at City
Hall.
Members Present: Council Members Swecker, LaBeau, Anderson, and Davis, and Mayor Little
2. Interview for Planning Commission vacancy
City Council interviewed Patrick Kaluza for a position on the Planning Commission
Staff Present: Steve Mielke, City Administrator; Dave Olson, Community and Economic
Development Director; Brett Altergott, Parks and Recreation Director; Allyn Kuennen,
Administrative Services Manager; Dennis Feller, Finance Director; Chris Petree, Public Works
Director; Julie Werner, Senior Accountant; and Judi Hawkins, Deputy City Clerk
3. Citizen Comments
There were no citizen comments.
4. Outdoor Patio Ordinance Proposed Revision
Dave Olson provided an overview of the proposed changes to the outdoor patio ordinance which
would allow patios located within 150 feet of a residential district to serve alcohol and food until
11 p.m. Sunday through Thursday nights and until 12 a.m. on Friday and Saturday nights. The
City Council previously discussed this item at their April 28 work session and directed staff to
draft an ordinance amendment which would allow extended patio hours and return it to Council
for review. The current ordinance allows food and alcohol sales until 10 p.m. on all nights. The
City's adopted noise ordinance allows 65 decibels before 10 p.m. and 55 decibels after 10 p.m.
Enforcement by the police is typically on a complaint basis. Olson stated that the City does not
own equipment to measure noise so it is difficult for the City to enforce the ordinance. Currently
the 150 -foot guideline is only relevant to Carbone's and Babe's. Babe's has also requested an
extension of their patio hours that would coincide with their closing time, which is 2 a.m.
Council Member Swecker supports the proposed new language without further restrictions,
especially since there have not been any complaints. She has concerns about serving liquor until
2:00 a.m. which could encourage higher volume. She believes the businesses have been good
neighbors and will continue to monitor the noise.
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Council Member LaBeau wants to make sure the owners have a clear understanding of any
possible consequences and to insure that feedback from neighbors is legitimate.
Council Member Anderson questioned whether the ordinance should address live music which
might create complaint situations or conflict with the ordinance. Mayor Little stated that the
main patio issue is the sale of food and alcohol and not the music. Mr. Olson stated that if
council chose, the ordinance could reflect no music or amplified sound after 10 p.m. while still
allowing patrons to be served until 11 or 12. The existing noise ordinance which regulates music
and TVs, can be referenced in the patio ordinance. Anderson suggested the word "sound"
replace the word "music". Mayor Little noted that as it gets closer to closing time sometimes
people get more boisterous. He would like to maintain a balance of consideration to the business
owners and the residents.
Council directed staff to place this item on the June 2 agenda and to notify residents within 150
feet of the establishments about the proposed ordinance amendment in order to allow them time
to comment.
5. Proposed Purchase of Property from George Warweg
George Warweg recently approached the City and expressed an interest in selling 5.75 acres of
land near Antlers Park, including two existing houses, at a price of $675,000. Mielke stated
Antlers Park is heavily used and becomes very crowded in the summer. Parking is inadequate for
the number of people who picnic and swim at the park and beach. Lakeview Elementary is the
designated overflow parking; however park patrons also park on local streets near the park. Mr.
Mielke provided some background and stated that the City has been interested in acquiring
property near the park for many years. Additional property would allow expansion of the park
and parking capacity.
Mr. Warweg might also be interested in selling a wetland parcel to the City at a future date. He is
asking that deferred seal coat assessments in the amount of $1,236 be waived or paid for by the
City. There are also three years of back Green Acres taxes which would be payable as a result of
the property currently being removed from green acres. Mr. Warweg would like to continue
living in his current home on the property as a rental from the City and would like the City to
allow the current renter in the other house to stay there also. These rentals fees would offset the
cost of taxes and maintenance. Mr. Warweg would prefer to have the option to close the sale
after January 1, 2015. As part of the purchase contract the remaining parcels would be platted
and wetlands dedicated by Mr. Warweg which would clean up property lines. In addition, old
right of ways would be vacated by the City in exchange for a new right of way being dedicated
which would create an opportunity for a roadway connection from Italy Ave. to Itasca Ave., if or
when Council chooses.
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Current zoning allows single family housing and townhomes; Mr. Warweg would like the
purchase agreement to restrict any rezoning of the property, unless approved by him, for a period
of seven years. He is also asking for current deferred seal coating assessments in the amount of
$3,400 on these parcels to be waived. A trail easement on the east side of the railroad tracks in the
proposed contract will provide the opportunity to move the trail north of the tracks to the south
side allowing more buffer for the businesses when Kenwood Trail is improved. Council Member
LaBeau wished to clarify that taxes and maintenance on the existing homes become the
responsibility of the City. Mielke stated that lease agreements have not been drafted.
City Administrator Mielke stated that there has been an influx of park dedication funds due to
the increase in development. Council will be asked to review the 2014-18 Park Dedication Fund
for reprioritization to include purchase of this parcel. If Council believes this is a high enough
priority, a purchase agreement will be crafted. Council Member Swecker believes this purchase is
extremely beneficial to the community. Mayor Little thanked Council Member LaBeau for her
work in helping to bring this proposed agreement to fruition and asked staff to define the intent
of the proposed purchase. Mielke stated that Antlers Park is a very popular amenity in the
community but there is an extreme shortage of parking on weekends and holidays. Staff would
need to work with Council to determine the specific use of the property but sees the ultimate use
being additional amenities and parking areas. Mielke believes the issue with cars parking on
residential streets might be alleviated by having the access off of a major collector such as Ipava
Avenue, rather than 201St Street, which is a neighborhood street.
Mayor Little questioned the concept of purchasing property to be used for parking. Council
Member Swecker suggested that purchase of the property would create options within the park
for reconfiguration of the amenities. Council Member LaBeau believes the additional parking
will enhance the park users' experience. She also suggested this purchase could provide an
opportunity for a needed turn lane to the west at 202°d St. and Ipava. Mielke agreed that the
additional property would enhance the opportunity and ability to redesign the park.
Council Member Anderson sees this as a long-term legacy issue that will be beneficial in several
areas including safety, park access, and future street connections. He believes the price is fair and
supports the purchase. Council Member Davis also expressed his appreciation to LaBeau for the
work that has been done and looks forward to opportunities this purchase will provide. Mielke
suggested that a master plan of the park be created so the public will be aware of future plans.
Council directed staff to move forward with drafting a purchase agreement with George Warweg
for the property near Antlers Park.
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6. 2014-2018 Park Dedication Proposed Revisions
Parks Director Brett Altergott was asked to provide options for adjustments to the 2014-18 Park
Dedication Fund which would allow the purchase of the Warweg property as discussed as well as
purchase of additional acreage for the proposed park in the Mattamy development. Altergott
outlined a breakdown of several projects that could be deferred in order to shift CIP funds to
allow for the two park purchases. Funding of the North Creek greenway trail was discussed.
Swecker asked about the federal funding grant and if funds would be lost if the project is not
completed. Swecker believes it is more prudent to take care of what is currently owned, including
some maintenance projects, trail connections, and field lighting before new projects are started.
Council Member Anderson agrees that many projects have been "deferred" and current projects
such as King Park lighting should be completed before new projects such as the Mattamy Homes
park project are started. Anderson asked if the time is right for a park referendum. Council
Member LaBeau stressed the importance of completing the Parks Plan update in order to
establish priorities and make decisions. Mielke believes the Park Plan will need to be adopted
before any final decisions are made. Chuck Ryan of the Lakeville Baseball Association was
present and stated that their goal is to accommodate everyone in their programs; however,
without additional fields they will need to turn players away.
Altergott stated that the LBA is currently raising funds for field lights and estimates about
$75,000 per year will be raised specifically for that purpose. Little believes the field lighting
project should begin in 2016. Anderson would like to see the King Park lighting done before the
parking lot. Council Member Davis is reluctant to delay the lighting at King Park because of the
great need for 90' fields but believes the Mattamy parkland is also important.
A possible park bond referendum was discussed. Mielke stated the last bond referendums were
held in 1994 and1984, which were times of growth. Current park needs outweigh the capacity of
the park dedication fund, creating a need to ask the public to set priorities and define their level
of support. Council would like to hold a discussion regarding priorities following completion of
the Park Plan Update, which staff anticipates will be in July.
Council directed staff to proceed with the purchase of the Warweg property in 2014 or early 2015.
Further discussions are needed regarding the Mattamy parkland purchase. Council is supportive
of allowing signage at King Park informing the public and potential developers and homeowners,
of future field lighting and its funding sources.
7. Five Year Financial Assessment and Projection
Finance Director Dennis Feller stated that the Five Year Financial Assessment and Projection was
created to develop strategies for financial sustainability based on the City's vision for the future
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and identification of priorities. Themes that have evolved from this process revolve around
growth. The document was created based on the 2014 Adopted Budget and looks at both
operations and capital improvements, as adopted in December. Assumptions that are made
include no changes in the operating services. Any changes in operation expenditures are driven
by growth in order to maintain services. The document tries to identify patterns and policy issues
to provide guidance for future budgets.
Community assessment: Senior staff gathered on several occasions to discuss what future issues
the City can expect to face. Staff identified several potential financial management policies and
practices within the plan and those policies that might provide an opportunity to make changes
in future financial management, if Council desires. Projections are based on steady growth in the
future; however there are always variations in the growth rates and economy. Staff recommends
considering a conservative operating budget based on estimated increasing costs of services. In
addition to building permits, revenues are received from engineering services. When revenues
exceed expectations they can be set aside as a fund balance for the times of slower growth, or they
can be used for one-time expenditures.
The data is the same as what was used to develop the CIP, based on estimated new housing units.
The operating budget, or General Fund, shows an increase in expenditures in 2015. One
contributing factor is the need to increase staff to maintain service levels. Another factor is an
increase in parks maintenance projects which were previously deferred. The tax levy in 2016
drops slightly due to the estimated increase in dwelling units, based on five-year projections.
Communications: Feller described restricted Education/Government (EG) franchise fees of
$54,000 per year and unrestricted regular franchise fees that can be used for any governmental
purpose. Over a five year period the EG funds can continue to compound. Staff recommends
exploring different options for using non -restricted franchise fees and fund balances. Options
might include reducing the franchise fees; appropriating funds to a one-time capital expenditure;
using the funds to finance services; or reducing taxes.
Feller stated that major maintenance needs are becoming apparent in a number of areas
including transportation, utilities, facilities, parks and trails. Street reconstruction will continue
to be a recurring expense; the city's funding policy is to finance projects with SR Bonds over a
ten-year period. Staff recommends exploring various financing options for the city's share of
street reconstruction projects. Rather than relying on debt, the City might use a pay-as-you-go
method or create a construction project reserve fund.
Facilities maintenance: In an attempt to keep the tax levy stable, major maintenance was taken
out of the General Fund and shifted to the Building Fund. The Building Fund receives its funds
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from proceeds of the Lifetime sale, which will end in 2019. Staff recommends exploring various
ways to fund ongoing finance options, such as a defined revenue source. The 1994 park bonds
are satisfied in 2014 and staff recommends continuing to set aside the same amount of funds in
future years into a separate major maintenance fund, averting the need for a tax increase.
Property taxes: Per capita dollar amounts have increased by about $7 each year due to street
reconstruction project costs. In addition to street reconstruction the tax levy funds operations
and equipment. For comparison purposes, the figures shown are based on no increase in market
value. Tax burdens are shifting back to residential properties from commercial/industrial
properties. Staff recommends looking at some tools that can be used to balance the budget and
maintain stability from year to year.
Council Member LaBeau asked about the recommendation to continue to collect funds that were
previously used to repay the park bond. Feller stated it is one option Council might consider for
addressing ongoing major maintenance costs without causing an increase in the tax levy, since
the funding already exists. LaBeau stated that if the bond has expired continuing to collect the
funds doesn't give the community the true picture; she believes the community doesn't
understand the true cost of major maintenance projects.
Council Member Anderson believes this Five Year Financial document is a useful tool as a
foundation from which to consider some of the bigger questions. He asked whether the growth
rate of 2% would be sufficient to stay within the current tax levy. Based on the assumption that
the per capita revenue of $407 stays constant and growth continues at 1,200 persons per year,
would that additional revenue be adequate? Feller stated that with only that $407 compounding
for five years, a major decrease in service levels and/or a reduction in street reconstruction
projects would be needed. Added resources over and above growth will be necessary to
accommodate additional residents' services that are needed as a result of the growth. Anderson
believes there should be a way to make choices to best use the resources without raising taxes.
LaBeau also believes there are more efficient ways of using existing resources without raising
taxes. Mayor Little believes Council has done a good job of partnering with other agencies and
making the best possible use of resources. Council Member Anderson provided an example of
how technology changes have increased the opportunities to save funds at his place of
employment. Council Member Davis commended staff on this financial tool as a method of
encouraging conversations about financing. He added that a growing population will require
services in several areas including police services, utilities, etc. LaBeau added that staff is doing a
good job but can always do better. She would like to challenge staff to try new ways to do things.
Mielke agreed that staff should have the mindset of finding ways to do things smarter, cheaper
and faster before raising the tax levy. Mielke added that per capita needs alone do not indicate a
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justification for automatic increases in expenditures. Council Member Anderson asked staff to
provide a scenario showing no per capita increase.
Council Member Swecker expressed her appreciation for the efforts that have been made by staff.
Both staff and Council have been conservative and mindful of spending and of understanding the
budget and financing options. Mielke pointed out that currently there are several one-time
revenue sources that are supporting ongoing maintenance projects, and that the current levy of
$407 might not be capable of sustaining the increased rate of expenditures. Anderson stated that
determining how much is needed is one of the challenges of future budget planning.
Feller stated that initiatives are the future view and are broken into three categories: Community
Growth, Services, and Emerging Issues. Community growth addresses continuity of services,
including what facilities, equipment, or services will need to be expanded to keep up with
population growth: water, utilities, snow plowing and salt storage, fire station, parks and
recreation, etc.; Services will include police, additional staff, engineering, human resources, code
enforcement, trail maintenance, ice rinks, etc.; Emerging Issues includes such items as Emerald
Ash Borer, high speed internet, infrastructure, technology, etc.
Staff is requesting comments and guidance from City Council regarding the budget and CIP
process, which will be followed by Finance Committee review. Council Member LaBeau asked if
the Finance Committee's input has impacted the budget process and if the committee has been
helpful. Feller stated that the Finance Committee is continuing to learn and they reflect the
subjective opinions of a portion of the community. Mielke added that there have been some very
philosophical discussions by the Finance Committee regarding wants vs. needs, which needs to be
determined by Council. LaBeau wishes to encourage the committee to continue to recommend
budget financing options.
Council Member Davis asked about the role of the Finance Committee in the budget process.
Feller stated that topics involving financial policies, practices and recommendations go back to
the Finance Committee for review. There are many financing options for items such as street
reconstruction. Mayor Little expressed support for moving toward a pay as you go method for
street reconstruction financing and would like Council to reopen that discussion. Council
Member Swecker stated she is interested in learning more about it as a possible long-term policy
discussion. Mayor Little believes this is a top budget priority and discussions need to begin soon.
Council Member Anderson stated there are many areas where financing options need to be
determined and believes Council needs to take advantage of Finance Committee discussions.
Mayor Little stated that he would like to have discussions regarding long-term investments such
as street reconstruction financed on a pay as you go method.
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Council Member LaBeau stated that road improvements and public safety are a need rather than
a want. Trails are a major maintenance item and she is unsure if the public realizes the actual
cost. Mayor Little believes that, based on the accelerated street reconstruction program, Council
is in agreement that road improvements are a priority.
Council expressed their appreciation to staff for identifying issues with this valuable document.
8. 2015-2016 Budget Review Process
The budget process has begun at the staff level and the first preliminary draft will be first received
by Council at the July 28 work session. There are four work sessions scheduled to discuss budget:
June 23: discussion of CIP; July 28, and August 11 and 25: budget work sessions. The Preliminary
budget needs to be adopted by September 15. Mayor Little asked if the July 28 meeting date
could be adjusted; staff will survey Council members for an alternative. The format will be
similar to last year, with the Council having the opportunity to provide input for revisions
throughout the process.
9. School Road Safety Task Force Update
Mr. Mielke stated that the School Road Safety Task Force process has moved along rapidly and
they are nearly finished with their work. The initial task was to identify needs for road projects.
Each task force member was given two school sites to visit and monitor, then provide their
information back to the entire group. The next meeting will conclude prioritization of
peestrian/bicycle related safety and will involve discussions on policy -related issues such as the
im acts of busing policies, enforcement, and school zones. Mielke will be recommending a joint
City/school district/county task force to begin looking for solutions to the identified priorities.
The top five roadway priorities are: #1) Dodd Blvd. from 185" to 19401; #2) Orchard Lake
Elementary traffic flow; #3) Oak Hills Elementary access by students and parents; #4) Lakeville
South HS, 2101 Street pedestrian issues; and #5) All Saints Catholic School traffic onto Holyoke
Avenue. There are many other items identified on the list. Council will be asked to consider the
list of priorities in their CIP budget discussions.
Council Member Davis believes the task force members' firsthand observations at the schools and
discussions with the school principals regarding their concerns were critical to the process.
Council Member LaBeau believes that some of issues could be corrected with policies from within
the schools. Buses are underutilized which creates or adds to the traffic issues around the
elementary schools. There were very few pedestrians at either Lakeville North or Century Middle
Schools and principals were directing traffic. Mielke agrees there will need to be a collaborative
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issue with the schools to make improvements to their individual sites; however, several areas have
been identified where the City can have an impact on improvements.
10. Other
Use of Council Chambers by School District: Due to inadequate seating in the ISD 194 board
room and future expenses for televising meetings, they have requested that meetings be held in
the City Council Chambers. The current JPA with ISD194 provides for shared use of space such
as the use of gymnasiums for Park programs. The School District will pay for any capital needs
that will be incurred as a result of their use.
The school district's AN technician will be trained and can be utilized as a backup position for
the City. The board can use the lunchroom as their prep/gathering space so that City offices
remain secure. Swecker asked about liability for any damage to the City's communications
equipment. Mielke stated that the school district would be responsible for any damage beyond
normal wear and tear. Since communications equipment is purchased with E/G fees, staff
believes it is an appropriate use.
Council Members were supportive of allowing the school district to use the Council Chambers
for their board meetings, provided there is adequate building and office security.
11. Adjourn
Mayor Little adjourned the meeting at 9:20 p.m.
Respectfully submitted,
Jud awkins, Deputy Clerk
J— ,�` -
Matt T ittle, Mayor