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HomeMy WebLinkAbout06-23-14 WSCITY OF LAKEVILLE CITY COUNCIL WORK SESSION MINUTES June 23, 2014 Mayor Little called the meeting to order at 6:53 p.m. in the Marion Conference Room at City Hall. Members Present: Council Members Swecker, LaBeau, Anderson, and Davis, and Mayor Little Additional Staff Present: Steve Mielke, City Administrator; Dave Olson, Community and Economic Development Director; Allyn Kuennen, Administrative Services Manager; Brenda Visnovec, Liquor Operations Director; Jason Polinski, Police Lieutenant; Chris Petree, Public Works Director; Zach Johnson, City Engineer; Dennis Feller, Finance Director; Julie Werner, Senior Accountant; Cindi Joosten, HR Manager; Brett Altergott, Parks and Recreation Director; and Judi Hawkins, Deputy City Clerk 2. Citizen Comments There were no citizen comments. 3. Presentation of Comprehensive Housing Needs Assessment by Maxfield Research and Dakota County CDA Dave Olson stated that the Dakota County CDA contracted with Maxfield Research in 2013 to complete a comprehensive housing needs assessment for the county. In doing so, Maxfield Research analyzed demographic growth trends and characteristics, existing housing stock, and current housing market conditions. The last similar study was done in 2005, prior to the recession. The purpose of the study was to assist in determining housing demands and recommend specific housing products. One of the initiatives of the EDC's three-year Strategic Plan for Economic Development is high density housing. Olson introduced Mark Ulfers and Leah Petricka of the CDA, and Mary Bujold of Maxfield Research. For the 2005 study the county was divided into three categories: developed communities with little land remaining, growth communities (which included Lakeville), and rural towns and townships, which will likely remain low density. At the time the study began the Metropolitan Council was developing their 2040 household and population projections but had not yet released new 2020 or 2030 projections, so figures were developed by Maxfield. Growth has rebounded very rapidly since the end of the recession, in part due to the pent-up housing needs. There are 13,600 new households projected in Lakeville from 2010 to 2030, and 49,500 projected for the entire county. A limited increase is projected in senior housing demands until after 2020. Millennials (ages 14-34) will be the largest age group later this decade. Median income in Dakota County is $71,360; Lakeville's median household income is $75,889. From 2000 to 2010 Lakeville added 3,942 jobs, a 36% increase. Anticipated job growth from 2010 City Council Work Session June 23, 2014 Page -2- to 2020 in Lakeville is nearly 8,000. As of 2012, 11% of all metro jobs are in Dakota County. Lakeville is projected to have higher proportions of owned single-family and multifamily than the county primarily due to more land available for these types of housing products. General occupancy rental housing was discussed. In the metro, and across the country, there is a trend for investors to look for opportunities to invest in market rate rental properties. There is currently a 2.5% vacancy rate in rental properties in Lakeville vs. 1.6% in Dakota County. This is the lowest vacancy level in ten years. Low income and special needs renters have the most difficulty finding affordable housing. There is a waiting list for the 139 shallow -subsidized units in Lakeville where renters are at 50-60% of median household income. There is about a 16% vacancy in Lakeville's three senior housing market rate properties with services, compared to 5- 7% countywide. This is attributed to some of the developments being new. The for -sale market is rebounding in all areas with increased activity in growth communities. As a growth community, Lakeville had nearly 400 new building permits in 2013. Not as much demand in building multi -family housing however, builders are continuing to want to build the single level townhomes for Baby Boomers. Lakeville ranks high in quality housing products. Baby Boomers and the Millennials, those born between 1980 and early 2000, will continue to be a strong influence on the housing market due to their high numbers. Mark Ulfers stated that the CDA has limited resources for subsidized housing but is doing what they can with what is available. Ulfers discussed various aspects of affordable housing, which is now being referred to as workforce housing because it is geared to working people with modest incomes. There is a waiting list for the limited supply of existing housing for renters who need deep subsidies. The CDA also assists by offering first time homebuyer and rehab loans. Ulfers offered that the CDA is available as a resource for the City to assist with planning for housing. Council Member Swecker asked who sets the income requirements for affordable housing. Ulfers stated that the Census Bureau and HUD publish the numbers that relate to median income on an annual basis. Ms. Bujold stated that since the recession the median income has increased slightly. Council Member LaBeau asked about the 2040 projections. Ms. Bujold stated that the Met Council projected the 2020 and 2030 figures prior to the 2010 census but she expects those figures to be adjusted. In order to conduct the study, the 2020 and 2030 numbers were estimated. LaBeau questioned the two-year supply of developed vacant lots. Bujold stated that those figures do not include future lots where infrastructure is not built. LaBeau asked to also be provided with those numbers. City Council Work Session June 23, 2014 Page -3- Anderson asked about the project that Mr. Ulfers referred to as being approved for 2015. Ulfers stated that he was referring to Morgan Square, located behind Muller Theater, which has been delayed due to some legal issues but is ready to move forward. Anderson asked how allowing "mother-in-law" apartments in residential areas relates to this work. Bujold stated that that type of unit helps to satisfy the rental need but it would be helpful to know how these are being tracked or used. Since it is not a separate building or unit it was not counted as part of this study. Anderson believes there could be a growing demand both culturally and economically for this type of living arrangements. Anderson asked about market rate rental properties. Ulfers stated that the demand in Lakeville is high but most of the new market rate rentals are being built closer to the downtown areas, with the exception of one in Eagan. LaBeau asked about the MLS reported average price of new home construction dropping since 2005. Bujold stated that it might have been a temporary figure - prices are actually rising rapidly for homes and townhomes. Mielke stated that one of Lakeville's housing priorities has been to develop additional scattered high density housing and market rate rentals but the study does not seem to indicate that this will happen. Bujold stated that as labor and materials costs begin to moderate there could be additional construction activity. Developers are working within an efficient square footage in an attempt to keep up with the demand. 4. Chemical Awareness Program Review Brenda Visnovec, Liquor Manager, introduced Renae Ouillette, Executive Director of Student Services for ISD 194, Judy Johnson, Chemical Awareness Prevention Coordinator/Specialist, and Lakeville Police Lieutenant Jason Polinski. The School District is asking the City for an increase in financial assistance provided for chemical awareness in the schools. The cost share program has been in effect since the early 2000s and reimburses the schools 33% of the School/Community Prevention Specialist salary and expenses. Funding is from the Liquor Fund. The school district pays the remaining costs. Ms. Johnson provided an overview of the chemical prevention program. Success is measured by the Minnesota Student Survey, which is applied every three years to 9I' and 11`h graders. Ms. Johnson stated that it is difficult to compare to earlier surveys, since the actual survey questions have changed. Results of the survey were provided with comparisons of Lakeville vs. Dakota County. Youth alcohol, tobacco, and drug use continue to be concerns. Johnson reported on some of the education and prevention programs that are being funded with this cost share program. The "sticker shock" and bottle neck hangers in the liquor stores will continue and additional new goals for the program have been set for 2014-15 school year. Due to the tragic accident near LNHS, the mock crash was not held this year. City Council Work Session June 23, 2014 Page -4- Council Member Swecker asked if the e -cigarette policy has been addressed by the schools; Johnson stated that the policy is the same as the tobacco policy. Swecker asked if the Pure Performance program is still active. Johnson stated some additional educational materials are being developed to help revitalize the program. Lt. Polinski stated that the chemical prevention program is a valuable tool for both students and parents and is a very important piece in keeping Lakeville schools safe. Ouillette added that the program deals with both prevention and intervention. Little believes the positive interaction with a police officer is another benefit of the program. He also questioned the lack of students' reported use of prescription drugs and heroin which is perceived to be an issue. Anderson asked why the cost of the program has increased by 39% in the past four years and stated he would need to see more information before he could support the increase. Ouilette stated that the School District wishes to create equity for this employee, making the position eligible for a benefits package to align with other district employees. Johnson stated that her position was generated as part of a grant and she was not benefit eligible at that time. Little is also concerned with how to manage increases in other cost sharing programs when they are not defined in the contract, and the longer term impacts those increases could have on the City's budget. LaBeau stated that there was a previously agreed upon number and alternatives might be available for the employee's compensation package. Anderson asked for clarification and confirmation of the accuracy in the school district's contribution toward medical benefits for the employee. Davis praised the program and its importance but would also like to see the cost of the benefit package explored for accuracy. Council directed staff to request further information from the school district on the cost of the benefit package and place this item on the July 21 Council meeting. 5. Dakota County Transportation Cost Sharing Policies Mark Krebsbach, Dakota County Transportation Director/County Engineer, stated that the transportation cost share policies date back to at least 1967, and include many policies other than the 45/55% split. There is a link to the entire document on the county's website. The 45/55% policy pertains to engineering, construction and right-of-way, but only for cities over 5,000; townships are not eligible for county cost share since they are eligible for state transportation funding. Maintenance or preservation projects are funded entirely by the county unless the project involves city utilities. Federal or State funding is deducted from the cost of the project before the 45/55 split. There is a 25% cap on regional projects such as interchanges and other projects with very high traffic volumes. City Council Work Session June 23, 2014 Page -5- Other cost share policies addressed in the document pertain to drainage, utilities, traffic signals and roundabouts, transit, and aesthetics. The county will also contribute up to 55% of City projects in certain situations: access consolidation; frontage roads; detoured traffic during construction; when changes to a county highway cause operation of a city street; and if a project will avoid or delay future county highway projects. Mr. Mielke referenced to the County being asked to participate in the extension of Kenrick Avenue from SouthFork to 185' with the justification that the roadway would relieve traffic from CSAH 50 during the construction of the roundabout, but the project did not qualify for funding. Krebsbach stated that the cities' CIPs are based on population and traffic growth. In townships and communities where roadway networks and access are inadequate the county can assist with improvements to minimize use county roads for local traffic. Approximately 127 miles of county roads are at capacity and will need to be widened by 2030, and an additional 34 miles of new roadways are planned. Projected revenues needed to meet transportation projects in Dakota County will be $500M short over the next 20 years, or $25M per year. The intersection of Cedar Avenue and CR42 is used by 75,000 vehicles per day; expansion will require an interchange resulting in separation of lanes. An interchange is also being planned for CR46 and Pilot Knob Road. Construction of the BRT along Cedar Ave. could delay the need for the interchanges. All governmental units are seeing revenue shortfalls. Future cost share topics include replacement projects, access and support of local roadway systems, and interchanges. The cost sharing program allows cities to work with the County to define their priorities and prepare for anticipated growth. Projects are driven by cities based on local needs. Since 2003 the county has spent $92.378M in Lakeville and the city has spent nearly $22M. Average annual contribution by cities is approximately 18%; Lakeville's share was 23.8%. This is primarily due to the cost of the three interchanges on 35W, specifically the CR 70/35W interchange which accounted for over half of the funds spent by the City. There was a great deal of county cost for the Cedar Ave. BRT which greatly benefited Lakeville. Anderson stated that this was a valuable discussion and he appreciates the information on the cost sharing partnership. He asked if there might be alternative borrowing or funding options for the City by working through the county. Mr. Krebsbach stated that it is the County Board's policy to not borrow funds for transportation projects, but to finance on a cash basis. The County might be open to discussing options for creative financing but their goal is to make sure taxpayers get a good return on their money. 6. Kenwood Trail Economic Development Study Zach Johnson updated Council on the continued planning design of Kenwood Trail between 1851 Street and Dodd Blvd. This is included in the 2014-2018 for construction in 2017 to provide for future traffic volumes and improved roadway and intersection operations and safety. Council City Council Work Session June 23, 2014 Page -6- has expressed the importance of working with the business owners, especially between Ipava Ave. and Dodd where several unique constraints exist. Hoisington Koegler Group, Inc. (HKGi), represented by Bryan Harjes, is proposing to conduct an economic and engineering study. Mr. Harjes gave an overview of the project and stated that the goals of the study are to identify and evaluate transportation needs, potential impacts of site reconfiguration on businesses, the issues and needs of businesses, and to work with Springsted on possible public financing strategies. The preliminary design process would involve meeting with stakeholders including city and county staff to collect background for an analysis of the site; meeting with each individual business and residential property owner; studying preliminary land use and redevelopment options as well as site reconfigurations; and testing roadway engineering alignments to discuss redevelopment strategies. The second phase would involve cost estimates and discussions with stakeholders followed by informational neighborhood meetings, in order to determine the best approach. Springsted will assist with a tool kit of financing options. Staff and council will be continually updated throughout the process. The timeline goal is to complete this process by the end of the year for detailed design in 2016 and construction in 2017. Anderson asked how inclusive the neighborhood meeting groups would be. Harjes stated that it would mostly be the commercial landowners, residential properties south of the ice arena, and the townhomes to the north and east since they will be most directly impacted. Anderson asked if a survey of some kind could be done to gain a broader outlook about clients' attitude toward changing their existing habits to access businesses. This might possibly be done using a sign along CSAH 50 which would direct people to an online survey. Mr. Mielke stated that there is a broad range of options that will be explored by HKGi as part of this study. Mayor Little asked how the study would be funded. Mielke stated it would be partly funded with Municipal State Aid. Little wondered whether the listening sessions are necessary, since the business owners have engaged in significant conversations with the city and possibly this is a duplication of efforts. Anderson asked if the study cost could possibly be lowered by using available data or by Council members talking with the business owners directly. Mr. Harjes stated that there are many benefits to having a third party conduct these interviews as they ask the appropriate questions and build relationship with the business. Davis sees the validity in having a third unbiased party conduct the sessions and believes HKGi is better equipped to have the discussions with the businesses; however, there might be an option to adjust the number of sessions. LaBeau stated that the businesses are conscious of dollars that are spent on studies. Dave Olson stated that until the businesses are actually presented with some options and have a plan to look at on paper it is difficult for them to comment or indicate what their preferences are. Mr. Mielke believes that in the scope of the project it would be possible to have a variable number of meetings. Mr. Harjes will add that language to the proposal. City Council Work Session June 23, 2014 Page -7- Council directed staff to add the proposal from HKGi to the July 7 regular agenda. 7. Warweg Purchase Agreement Mr. Mielke provided an update on the Purchase Agreement for the Warweg property. He stated that a suggestion has been made that the City and the seller consider a contract for deed as a funding mechanism as opposed to a cash payment. LaBeau believes it is important to add language which prevents the seller or their renters from making any improvements to the property to prevent any liens from being filed against the property. LaBeau also would like to determine if there are insurance payments being made to the seller for property damage from a storm earlier this year and make sure any damage has been repaired. The agreement should specify that all personal property must be removed from the property so as not to incur added cost. Council members directed staff to place the revised purchase agreement with George Warweg on the July 7 Council agenda. 8. School Road Safety Task Force Report Allyn Kuennen provided an update on the School Road Safety Task Force. The task force was directed to review road and traffic safety issues and pedestrian safety and policies. Task Force members spent time observing traffic patterns at each school within the district, particularly during drop-off and pickup times, as well as pedestrian access and interaction with vehicle traffic. Council Members LaBeau and Davis represented the City of Lakeville on the Task Force. In its prioritization of the issues and needs, the Dodd Blvd. improvement project was at the top of the list. The task force felt that if a project of that magnitude is not feasible at this time, possibly an interim solution to reduce student traffic on Dodd should be pursued. The task force also produced a list of recurring themes and a prioritized list of pedestrian issues, with lack of trails and shoulders at Lakeville South High School being the highest priority. A review of general policies was also conducted; the task force would like the city, county or school district to consider these policies as they review the other issues being explored by a technical committee. A technical committee is being proposed which would consist of school district, Dakota County and City staff and would begin looking at issues and policies to see where they fit into the CIP budget process. Anderson stated that there are some policy decisions and practices by the school district that need consideration. This report is a good tool to use for discussions; however, a technical committee would not have any authority to implement change. Mielke stated that the committee would consist of staff, rather than citizens, as the issues are largely on school property and solutions will City Council Work Session June 23, 2014 Page -8- be school -driven. Other issues are street -based and the City and County could collaborate on solution. Kuennen added that it is a working document to assist Council in prioritizing the transportation CIP. Davis added that the document also will be a tool for partnerships with the school district and county to implement projects. Mielke stated that it was made clear to the SRS task force that all projects would not necessarily be implemented. LaBeau added that the increased traffic around the schools is a result of the student busing/walking policy. Kuennen stated that one of the first things the technical committee should look at is Dodd Blvd. and if there are any interim solutions to keep students, possibly closing the access to LNHS off of Dodd Blvd. The report is ready for official acceptance by the City Council and distribution to other agencies. Mayor Little thanked staff and council members for serving. Council directed staff to put the report on the July 7 Council agenda where Task Force members can be acknowledged for their contributions. 9. Transportation - Five -Year Plan Chris Petree stated that Dakota County has begun preparations for 2015-2019 Transportation CIP and is seeking input from City staff. They would like to receive comments on or about June 30. Chris Petree provided an overview of the projects which are in the CIP. One of the primary issues is that municipal state aid funds will not be adequate for all of the proposed projects along with other projects being planned in the City's 2014-2018 CIP. Among the projects are the CR 50/60 roundabout, CR 50 design and expansion, and Dodd Blvd. from 185' to 1941. LaBeau believes the 190' Street elevation is high and dangerous in the winter. She is concerned about spending money on temporary turn lanes at 190' St. and Dodd Blvd. only to have to tear them out when the intersection is eventually lowered. She would like to use the funds for a more permanent solution. Mielke stated that the temporary turn lanes would be the developer's responsibility. Other projects have been added to the 2015-2019 CIP as a result of the SRS task force and discussions with Dakota County including the Dodd Blvd. improvement project in the 2018 CIP; traffic signals on Dodd Blvd. at 1851 Street; CR 50/192°d Street traffic controls; Holyoke and 2101' Street turn lanes and flashing yellow arrows on Cedar at 1641 Street, 170' Street, and Glacier Way; and other proposed and/or anticipated projects. Based on anticipated development, two roundabouts are proposed at Holyoke and 1901 Street. $192,000 was set aside for this project. Council discussed other funded and unfunded projects as well as potential development -driven projects including the possible extension of 215`'' Street off Cedar into the Farmington area. City Council Work Session June 23, 2014 Page -9- Anderson asked about a possible interim solution on Dodd. Mielke stated that the 1901 Street and Dodd Blvd. intersection would be upgraded with the development that is occurring. Other things that the task force discussed are possible snow fences in the ditches along Dodd, and a possible closure of the access to the Lakeville North student parking lot off of Dodd to divert traffic onto Dodd during the CR 50/60 roundabout project. The owner of property in the area of 172nd Street and CR 5 has expressed an interest in development; however, traffic improvements would need to be made to the intersection and additional resources would be required. Dennis Feller stated that in order to maximize the MSA funding for construction projects, the MSA maintenance funds are projected to be reduced from the current $374,000 per year in 2014 to $120,000 in 2015 and thereafter. The City would also be issuing the maximum MSA debt of $7 million in order to provide financing for the two major projects in the CIP: CR 50 from Dodd Blvd. to CR 60 ($6.8M) and the Dodd Blvd. project from CR 60 to 1940, Street ($2.5M). Feller discussed revenue and debt options for financing, including the option of rescheduling projects. The County is requesting direction from Council as they are also preparing their CIP. Many of the projects on the list remain unfunded. The scheduling and prioritization of projects from a financing perspective was also discussed. An attempt will be made by the County to minimize costs for any temporary improvements to Dodd. Discussions on project scheduling and financing options continued. Council members would like to see the CR 50/192nd Street traffic control project lowered on the priority list. The task force was concerned about both vehicle and pedestrian safety at this intersection, but there is nothing currently scheduled in the CIP. Discussions will continue on the Transportation CIP. 10. Appointment of Interim City Administrator Council Member Davis stated that the Personnel Committee, consisting of Council Member LaBeau and himself, after thoughtful deliberations and discussions, and not wishing to increase the work load of department directors, is recommending that Lakeville Administrative Services Manager Allyn Kuennen be appointed as the Interim City Administrator. The interim will be the communication point of contact between all staff and Council. The interim will not eligible to apply for the City Administrator position. Council is confident that department directors and staff will continue to operate in a collaborative and efficient manner during the interim period. Council members supported the recommendation of the Personnel Committee. Anderson asked how Council would best be able to support Mr. Kuennen and staff. Swecker also supports the recommendation and would hope that some duties can be taken on by Council to help in the transition. LaBeau also expressed her appreciation to the other candidates for their willingness to serve in the role and has confidence in department directors to assist Mr. Kuennen. City Council Work Session June 23, 2014 Page -10- Motion was made by Anderson, seconded by Swecker, to suspend Section 1.5 of the City of Lakeville Council Rules of Procedure to allow for a vote on the appointment of an Interim City Administrator. Ayes: Unanimous Council Member Davis stated that the Council has great trust in City staff's ability to assist the interim administrator and thanked staff for their ongoing commitment. Motion was made by Davis, seconded by Swecker to appoint Allyn Kuennen as Interim City Administrator as of July 11, 2014 and until a new City Administrator is appointed. Ayes: Unanimous Council will meet following the July 71 regular meeting to discuss what their role will be in assisting the interim city administrator. The HR Manager stated that Springsted should have the profile completed by that time and council might want to look at that prior to the advertisement of the position. The Personnel Committee will discuss the profile prior to the meeting. LaBeau stated that she had been contacted by Pan-O-Prog with a list of opportunities where Council members might be interested in volunteering their time. 11. Other There was no other business. 12. Adjourn Mayor Little adjourned the meeting at 10:55 p.m. Respectfully submitted, 1 Ju ij Hawkins, Deputy Clerk Matt Li le, Mayor