Loading...
HomeMy WebLinkAbout10-14-14 WSCITY OF LAKEVILLE CITY COUNCIL WORK SESSION MINUTES Tuesday, October 14, 2014 Mayor Little called the meeting to order at 6:30 p.m. in the City Hall Marion Conference Room. 1. Roll Call: Members Present: Council Members Swecker, LaBeau, Anderson, and Davis, and Mayor Little Staff Present: Allyn Kuennen, Interim City Administrator; Daryl Morey, Planning Director, Dennis Feller, Finance Director; Chris Petree, Public Works Director; Dave Olson, Community and Economic Development Director; Brett Altergott, Parks and Recreation Director; Judi Hawkins, Deputy City Clerk 2. Citizen Comments None 3. Patio Ordinance Update Planning Director Daryl Morey provided background information regarding a request earlier this year to amend the ordinance to allow extended outdoor patio hours for Carbone's Bar and Grill at Lakeville Crossing and Babe's Sports Bar in downtown Lakeville. Council discussed this request at their April 28 and May 12 work sessions but tabled the item at the June 2 regular Council meeting after neighbors expressed concerns about extended hours. Subsequent meetings were held with both neighborhoods. Morey believes the zoning and land use guidelines support separation of the C -CBD District (Babe's) from the C-3 District (Carbone's) due to the smaller lot sizes and reduced setbacks in the downtown commercial district. Staff is recommending approval of the request to extend the patio hours from 10:00 p.m. to 11:00 p.m. on Sunday through Thursday and until midnight on Friday and Saturday, in the C-1, C-2, and C-3 Districts, which are generally along major transportation routes. Council Members Anderson and LaBeau agreed with staffs recommendations. Council Member Swecker stated that she continues to support treating all businesses equally, when they have both requested the extended hours. Davis asked if there are other businesses this would affect. Morey stated that other areas could fall into allowed commercial districts, but extended hours would not be allowed in the downtown area. Davis appreciates the desire to treat all businesses equally; however, in this situation there is a difference in the proximity of the neighbors. Mayor Little also supports this compromise. Council directed staff to place this item on the November 3 Council agenda and to notify both business owners and the adjoining neighborhoods of the proposed ordinance amendment. 4. 2015 Schedule of Fees Staff highlighted several questions regarding the proposed 2015 Schedule of Fees that were posed by Council at the September 22 work session. • Antenna Site Leases: The fee structure for cellular/PCL is consistent with current approved leases and is above average market rate compared with other cities. City Council Work Session October 14, 2014 Page -2- • Cash escrow for future road upgrades primarily adjacent to county roads: staff prepared a cost breakdown, based on the street section portion of the 2015 street reconstruction estimates. • Based on cost estimates of staff time expended on Massage Therapist and Massage Therapy Center license renewals, fees are proposed to be increased to $50 and $150, respectively. • Solid waste/recyclable collection licenses are proposed to be increased by $25 each per year. Even though some cities calculate their fee structure on the number of trucks in each hauler's fleet, staff recommends a set fee for each licensed hauler since it would be difficult to enforce an ordinance which is based on the number of trucks. • Staff is proposing to abolish the license requirement for tree removal companies, since the $25 fee is minimal and there is no enforcement. • Per Council discussion, staff recommends an increase of $250 on liquor licenses. • Council will be receiving a proposed ordinance which will regulate 3.2% malt, cocktail rooms, pubs and tap rooms. The Police Dept. is recommending license fees of $300 due to the amount of staff time incurred. • The Police Dept. recommends an increase in peddler licenses from $25 to $50. • Based on the amount of police staff time, investigation fees on initial applications are proposed to be increased to $700 for liquor, $300 for massage center, $150 for massage therapist, and $150 for Tobacco. • In the building permit comparison to other cities, Lakeville's water connection charges are higher; however, Feller explained that these fees are used for infrastructure thereby keeping user fees low. • Fees are proposed to be adjusted for Police miscellaneous charges including false alarm calls and other miscellaneous administration costs. Changes in the fee schedule which are related to official enforcement, which includes building and engineering fees and liquor licenses, must be adopted by ordinance following a public hearing. Staff recommends sending letters to affected parties explaining the reasons for the fee adjustment and notifying them of a public hearing to be held on November 17. This will provide an opportunity to receive public input. Fees not required to be adopted by ordinance will be adopted by resolution on the same night. S. Park Dedication Fees Park Dedication Fees from residential plats are the primary source of revenue for park development. At the September 29 work session Council questioned how fees relate to the current market on recent land transactions. Staff prepared a report showing the buyers and sellers, the price, number of acres and market value per acre of seven transactions totaling 565 acres. The highest price per acre was $78,000 for property near the bus stop at Cedar and Dodd, purchased by Mattamy. The lowest price was $49,000, also paid by Mattamy, for the parcel north of Spyglass east of Cedar. Land values are directly related to the zoning of the parcel and its proximity to sanitary sewer lines. The mean and the median values were very comparable at about $65,000. Using transactions that were platted this year the mean average of units was calculated at 2.1 lots per acre. The average was then applied to 2015 rate City Council Work Session October 14, 2014 Page -3- of 2.1 parcels per acre equals $7,940 per acre. Comparing that with the market value, and using the same factors, the range was 10-16% of market value per acre. The proposed 9.2% increase is consistent with the formula previously adopted by Council. LaBeau stated she could not support the 9.2% fee increase because she believes it is not reasonable by law because Mattamy only paid $50,000 per acre. Feller stated that properties outside the MUSA were not included in the calculation. The law allows for 10% as a reasonable increase. When the formula was initially adopted, the dedication of land coincided with the Park Plan but the land values had dropped by 70%. LaBeau stated that according to the law, a 10% increase is reasonable but she doesn't want Council to be challenged if the increase is too high. Davis asked if the proposed park plan could be completed if park land dedication dropped from 12 to 10%. Feller stated that it will be less than 12% but it would be very unlikely to go as low as 10%. Little supports the increase because he believes the intent of the adopted formula was to provide long term decision-making guidelines for Council. The fees were reduced 38% two years ago and another 2% last year. LaBeau stated that it's the taxpayers who actually pay the fees, not the developers. Anderson asked for a clarification of the law. Little stated that there are two factors in determining a rate increase: one is whether the fees coincide with the park plan, and the other is that the cash value needs to reasonably coincide with the market and the economy. LaBeau believes that the park plan needs to be completed and adopted as soon as possible before more land is acquired, since the park budget is tied to the park plan. Little stated that Council should consider redefining what a park is and the importance of the land allocation. He believes it is premature to make changes to the equation before those park plan decisions are made. Swecker agreed that it is important to define what the community needs and wants before any changes are made to the park dedication fees. Anderson added that he appreciates the two-year strategy that was implemented and believes the formula needs to be allowed to function as intended. The current park plan is descriptive, not prescriptive, and several policy and strategic decisions still need to be made. Davis stated that although the proposed park dedication increase seems high he believes the formula needs to have a chance to work. Council members asked to schedule a joint work session with the Parks, Recreation and Natural Resources Committee prior to the public hearing at the Planning Commission in order to continue policy and strategy discussions. Altergott stated that concerns expressed by Council at the last work session were brought to the Parks and Recreation Committee. Swecker would also like the public to have an opportunity to comment. Anderson believes public comment should follow Council's comments. Davis stated that Council needs to be financially prudent and look for funding alternatives, such as a referendum. Altergott believes the joint meeting of the Council and the Parks and City Council Work Session October 14, 2014 Page -4- Recreation Committee would be beneficial to discuss implementation of the park plan. LaBeau stated that there could be competition for funds if the schools also have a referendum next year. Council directed staff to remove the public hearing from the November 17 Council meeting and to schedule a joint session with the Parks Committee at the November work session. A date for a public hearing will then be determined. Staff will put a copy of the most current version of the park plan in Council's Dropbox. 6. Park Dedication Fund - Capital Improvement Plan (2015-2019) Finance Director Dennis Feller stated that the required public hearings to implement changes to the Schedule of Fees and park dedication fees will be held on November 17. Staff is asking for Council's input regarding the Parks 2015-2019CIP. Parks and Recreation Director Brett Altergott reviewed projected revenues including Federal grants and Dakota County funding for the 185th Street trail in conjunction with the CR 50/60 roundabout. Major CIP projects include North Creek greenway trail; 185th Street trail from Jamaica to Ipava; and a 30 -acre land purchase as part of the Mattamy development. Federal grant funds programmed for 2015 will be forfeited if not used for the trail project. Little clarified that park dedication funds can only be used for acquisition and new improvements and cannot be used for any replacements or maintenance. Feller stated that park dedication funds basically pay for the land but not the park amenities. Council members also received estimated operational cost impacts. 7. Continued discussion of 2015 Preliminary Budget Review / Staff recommendations Feller presented the 2015 Potential Budget which evolved as a result of the preliminary budget and tax levy adopted on September 15. Approximately $286,000 was undesignated in the preliminary tax levy. The 2015 Potential Budget eliminates all new staff positions and provides for replacement of existing equipment only. It does not provide for any new equipment for associated improved efficiencies. It provides for one year of facility maintenance and removes all park improvements with the exception of $56,000 of major maintenance. Council also received staff recommendations in their packet materials. 2015 Budget Priorities were prepared by staff following Council discussions. Staff's first priority is to approve an assistant fire chief as a supervisory position for the duty crews. This is a skilled position and requires a large commitment of time. A savings of approximately $5,000 would be realized in the amount now paid as a stipend. Staff is recommending acquisition of equipment to reduce future operating costs and improve productivity. In 2014 a revenue shortage of $40,000 will be offset by delayed hiring in the police department and city administrator position. Code enforcement is in the budget as a contractual part time position but time allocations are being monitored to determine how much more is needed. LaBeau asked if it is possible to share a code enforcement employee with another community. Other recommendations detailed in the document include: • Sustained tax levy increase of $51,000 annually for major maintenance of facilities; City Council Work Session October 14, 2014 Page -5- • Develop operational and financing plans for 2016 and beyond to address resources that will be needed for community growth. Council prefers this be done when the new City Administrator has been appointed; • Appropriate unencumbered cable franchise fee revenues of $495,000 to finance police, fire and street equipment acquisitions; • Appropriate funds for potential staffing or reorganization decisions as the new City Administrator might see an opportunity to increase productivity; • Reduce debt principal for street reconstruction to reduce future interest costs and future tax levies; • Add a Police Officer position to address calls for service due to growth and traffic enforcement issues. Council believes the position is justified to increase efficiency of the department but would leave the specific assignment to the Chief, • Rental revenues go to the general fund and offset expenses at the Heritage Center. $51,000 is budgeted annually for city-wide major maintenance of facilities, with the exception of liquor and parks; • The proposed budget recommends an annual $33,000 for routine trail maintenance; • Issuance of debt in 2016 for a new fire truck, Other recommended budget items were also reviewed with Council. Anderson asked how standards are defined at the Arts Center and wondered if the facility could get by with less. Feller suggested scheduling a walk-through with the Parks Director to determine if there are other options, or possibly reaching out to Friends of the Arts for assistance. LaBeau suggested corporate sponsors for upgrade of Land of Amazement since it is not financed in the budget. Anderson asked why trails are seal coated but not parking lots. Kuennen stated that there is a different emulsion used which extends the life of the trails. Staff recommends any fund balance above $9.7M be appropriated to the following: 1. $150,000 to debt mitigation of 2015 street reconstruction costs; 2. $150,000 to equipment fund for improved productivity, efficiency, or quality of service; 3. $150,000 to park improvement fund (possible source for Land of Amazement); 4. Upgrades to Pioneer Plaza pavers and amenities to improve safety and aesthetics. This is one of the topics for discussion with the DLBA. 5. Approximately $60,000 in revenue adjustments will be made to the general fund as a result of fee increases Other discussion topics included funding of fire pensions and a possible actuarial study; park major maintenance to be completed by Tree Trust; revised park improvement financing from 2014 unencumbered funds. The equipment fund outlines seven major pieces of equipment which staff believes will increase productivity and quality of services; staff will continue to solicit donations for thermal cameras so there will be one at each station. $85,000 of TIF funds is not allocated but could be used as Council wishes. New vehicles and equipment will be associated with future staffing needs to address new residential growth. LaBeau believes there could be savings realized by not using contract resources to provide services in the building department. There could be opportunities to take advantage of other revenues; City Council Work Session October 14, 2014 Page -6- however, the City also needs to be prepared for a shift in the economy. She also believes the Finance Dept. should have a succession plan. Little appreciates the budget which staff has prepared but strongly believes that the start of a debt reduction fund is critical to the future. He proposes an annually increasing amount to be allocated toward street reconstruction debt. He stated that in the beginning it will make a small impact, but as time goes on the impact will increase, if future councils continue to do the same. Davis stated that the Council voted on an accelerated street reconstruction plan but now needs to move toward a pay as you go plan. LaBeau stated that debt increases could be prevented if items requiring future maintenance are reduced, especially if there is uncertainty whether the community wants them. She believes some budget items are more of a want than a need and maybe those things could be eliminated and the funds used to pay down debt. Little believes that a responsible use of taxpayers' money is to pay down debt. Designating more of the tax levy to street reconstruction debt would save money in interest over the years. Anderson believes that the Finance Committee has made good recommendations and Council needs to be cognizant of how much debt the City carries and the ability of the residents to pay an increased levy. It's important that taxpayers get the most value for their dollars. He believes 3.5% can be supported by growth and would be willing to compromise to a net outcome to manage the debt in the long term. He feels 5.5% is too high but could move up from the 3.5% and consider using the $85,000 TIF funds to manage debt. Davis stated that Council needs to be cognizant of mounting debt. He is in favor of putting money aside in order to pay down debt; there needs to be a combination of a reduction in services or an increase in the levy. Little stated that of the current tax levy 21% goes toward total debt, which is spread across the community. Little asked if there is something Council members feel could be removed in order to accommodate debt reduction. LaBeau asked if debt reduction could come from new commercial development. Little believes that new development revenues are not self-sustaining nor have the ability to increase incrementally. Council will continue review of budget items at the October 27 work session. Swecker stated she would like to see the projected 10 -year budgets with the proposed debt reduction. Little stated that in ten years, at $125,000 per year, the savings would be $575,000. LaBeau asked if there would be adjustments for commodities with the gas prices going down. Feller stated that State contract pricing for gas is fixed on February 1 st. Salt prices are determined in June, which will be a savings of 10% this year due to increased costs since then. A discussion was held regarding proposed new positions. Anderson supports the police position, the duty crew position and associated leadership by the assistant fire chief, but believes the HR wellness program can be directed through the health insurance provider. Davis supports the duty crew and assistant chief position because of all the training that needs to take place. He would also like to see additional help in the Finance Dept. LaBeau City Council Work Session October 14, 2014 Page -7- asked if a position could be shared between the Finance and HR departments. Swecker also believes the duty crews are necessary but is unsure about a full time assistant chief. She is not totally supportive of the police officer position. She believes HR is heavily challenged and would support a part time HR assistant and an additional senior accountant. Little stated that the assistant fire chief could also help with the recruitment of additional volunteer firefighters. Swecker stated that the community sees what the Fire and Police departments do, but not what the Finance, Planning, HR, etc. do every day. Council members would like to have HR, Police, and Fire representatives come to the October 27th meeting to offer input. Anderson suggested securing non -levy revenue or soliciting corporate funding or partnerships. The Parks and Recreation Director could be asked to identify some possible opportunities for community support. La6eau asked if Council could commit to Monday work sessions for uniformity and efficiency for Council, staff, and the community. 8. Adjourn Mayor Little adjourned the meeting at 10:10 p.m. Respectfully submitted, Jud H wkins, Deputy Clerk Matt Little, Mayor