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HomeMy WebLinkAbout10-27-14 WSCITY OF LAKEVILLE CITY COUNCIL WORK SESSION MINUTES Monday, October 27, 2014 Mayor Little called the meeting to order at 6:00 p.m. in the Marion Conference Room at City Hall. 1. Roll Call: Members Present: Council Members Swecker, LaBeau, Anderson, and Davis, and Mayor Little Staff Present: Allyn Kuennen, Interim City Administrator; 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. 172nd Street and County Road 5 Area Realignment Dave Olson provided an overview of possible road alignments as part of a future Co. Rd. 50/5 intersection reconstruction. Olson stated that the City has received numerous inquiries regarding possible development of properties near the intersection of Co. Rd. 5 and 172nd Street, west of 1-35. A traffic study conducted by SRF in 2013 recommended relocating the existing intersection northwest to align with Kenyon Avenue south of HOM Furniture and realigning Kenyon Avenue cul-de-sac intersection with 172nd Street. City staff believes that the intersection as currently designed cannot handle increased traffic. The 2013 traffic study cost estimate to relocate the intersection, install the signal and build the new connection was $1.15M, not including right of way acquisition. Dakota County indicated a willingness to consider cost sharing for the project. Transportation improvements would be an eligible expenditure for approximately $275,000 of area TIF District funds. Representatives of the Chua family, Fortune Realty, Highland Bank, and Lennar Homes were present to discuss possible intersection improvements that would allow their properties to be developed and for potential buyers to be aware of any future assessments or restrictions. A commitment from the City would allow marketing of the properties. Ms. Perkins, representing the Chua family, stated that the high property taxes are a hardship because they are currently unable to develop or sell their property. Council Member Swecker stated that the area was officially "mapped" several years ago in order to plan for the ultimate design of the interchange and necessary land acquisitions. The freeway corridor in that area is valuable to the City, future commercial and residential development as well as wetlands in the area needs to be considered. Olson added that the official map was approved by MnDOT, preserving the right of way for future improvements. City Council Work Session October 27, 2014 Page -2- Approximately 100 acres are involved, 25 of which are zoned commercial. Council Member LaBeau stated that there are some landlocked properties in the area and the owners deserve to be able to develop their properties. Olson stated that some funding has been identified; however, a more detailed feasibility study is needed. Proposed development could change alignments of existing businesses and possibly require right in -right out access. The improvements would have the potential to provide freeway access for neighborhoods to the south. Mayor Little stated that the traffic situation might not be improved for existing businesses and this plan could possibly be a short-term solution. Staff stated that there is also some interest in developing properties on the east side of 1-35 and this draft is a flexible guide. LaBeau believes the property owners should have an option to move forward and be able to do something with their property, especially considering their high property taxes. Swecker stated that it is important to determine how the decisions will affect adjacent properties and the 1-35/CR 50 interchange in the long term. Council needs to create a policy and take the final design and long-term impacts into account. Swecker stated that there are many other projects that also deserve funding. Johnson stated the transportation route is already in the Comprehensive Plan. Staff asked if Council would consider participating in a feasibility study and begin working with the railroad and property owners. The feasibility could identify possible funding mechanisms which might include a redevelopment TIF District, tax abatement, or other tools. Johnson stated that the project could coincide with the extension of Keokuk in the subdivision to the south. LaBeau suggested the affected landowners be asked to contribute. Anderson would like to look at possible options without doing a full design, and assess different components of the costs. Davis stated that the property owners are somewhat stranded and the property needs to be unlocked. Council directed staff to begin working on a preliminary engineering study that would identify costs and funding opportunities. 4. BTD Storm Water / Infiltration Basin Request Dave Olson provided background on the Fulford Group/BTD proposed 200,000 square foot expansion to the former Toro building along Cedar Avenue. As part of the project, BTD is requesting approval to construct storm water management basins on adjacent City -owned property to the south. Representatives of the Fulford Group and Jack Matasosky of APPRO Development were in attendance. Council previously approved the TIF plan for this project at the October 201h City Council meeting. Developers are typically required to provide for storm water management on their own sites; however, this site was developed prior to those requirements. As a result, untreated storm water is draining into South Creek. The storm water management would improve the trout stream water quality and allow for the construction of the Cedar Avenue BRT corridor City Council Work Session October 27, 2014 Page -3- and the Lake Marion Greenway corridor. The watershed district and the DNR support this opportunity to improve existing storm water conditions. Construction costs and any restoration will be the responsibility of the Fulford Group; the City will maintain ownership of the affected property. An access road will be built to allow the City to continue use of the property as a snow storage site. The Planning Commission will review this proposal at their next meeting and City Council will consider their recommendation on November 171H 5. Ipava Avenue Pedestrian Study Chris Petree provided information regarding a neighborhood meeting which was held on October 23 to discuss the findings of the Ipava Avenue Pedestrian/Bicycle Safety Study. Approximately 45 adults and 19 children attended the meeting; Council Member Anderson also attended a portion of the meeting. A majority of attendees represented Quail Ridge; following a bike/vehicle accident in 2013 several residents of the neighborhood requested that the City take steps to improve safety in the corridor. The study recommended several actions that might improve safety: provide crosswalk enhancements on Ipava Ave.; consider installing rectangular rapid -flash beacons at both 178th St. and 1831d St.; extend the school speed zone; create an additional school speed zone at 178' St.; improve public outreach and informational programs; and enhance traffic enforcement. Staff summarized the questions and answers from the meeting. Staff had previously discussed with Eastview Elementary Principal Taber Akin the potential of the school and the city entering into an agreement to pursue a Safe Routes to Schools grant application for 2015 funding. If a Safe Routes to Schools grant does not become a funding option for improvements staff would return to Council to determine the level of funding they would be willing to commit in order to improve the pedestrian and bicycle safety along Ipava. Davis asked about student busing for the neighborhood. Petree stated that busing is available for a fee for students from the Quail Ridge neighborhood. There are no crossing guards provided at Eastview. Anderson suggested that enhanced traffic enforcement would demonstrate response and the City's commitment to improving safety, but would not be an additional expense. Petree recommends asking MnDOT to conduct a speed zone study in 2015 for the entire corridor. This can be done at no cost to the City. If additional signage is recommended, this would be at the City's expense but would be a minimal cost. This could probably be accomplished next year, depending on the work load at MnDOT. A resolution would be required to formally request this action by the Commissioner of Transportation. Swecker added that traffic will increase along Ipava with the closure of CR 50/60 next year. Little stated that the School Road Safety Task Force had expressed that the School District should participate in resolving issues that are created when schools are located in high traffic areas. LaBeau would like to see the School District pursue the Safe Routes to Schools grant and possibly look for other opportunities for safety improvements. City Council Work Session October 27, 2014 Page -4- Council directed staff to request MnDOT to conduct a speed zone study in the Ipava Avenue corridor. Council would also support additional signage and other methods of cautioning drivers of pedestrians and bicyclists in the area. 6. Antlers Park Monica Heil presented an update of the Antlers Park retaining wall reconstruction. The current retaining wall was built about ten years ago with modular block and is failing, partly due to its proximity to the lake. Sedimentation deposits from the lake also need to be addressed. The project proposes to remove 230 feet of the existing wall, replacing 105 feet with a wet -cast block material and grading the remaining portion into the park area. The new block would withstand wave action from the lake. The lowest bid was $41,800; as shoreline restoration the project would be eligible for funding by the 2014 environmental resources fund. If Council supports the project staff would draft an agreement with the contractor and present it for consideration at the November 3rd meeting. Council members asked about the contractor; staff stated that a structural engineer from the block company has designed the reconstruction project taking the lake elevation into account. The wall would address concerns with erosion and safety and would be built to last a long time. A DNR permit would be issued following the public comment period which ends on November 81h. Project completion would be expected in June 2015. The retaining wall is needed to protect and minimize impacts below the ordinary high water level and to prevent the green space in the park from eroding into the lake. Council directed staff to prepare a contract for the reconstruction of the Antlers Park retaining wall and bring the agreement to the next Council meeting for consideration. 7. 2015 Street Reconstruction Chris Petree provided a review of the scope and area of the 2015 Street Reconstruction project. The total project cost is estimated at just over $23M to be funded with property taxes, utility funds and special assessments of $6.379M. At the last meeting staff discussed possibly phasing the project into two separate contracts over two years, dividing the project both financially and geographically. This would also provide an opportunity to focus on the area most in need of improvement. Proposed assessments for the project are estimated at $8,116 per residential unit. Staff has been pursuing solutions and funding alternatives. By breaking the project into two phases, there would be two assessment rolls which, both of which would be levied in the spring of 2015. In the area that is being completed in 2015 the first special assessment would be payable in 2016; the first assessment for the portion of the project that would be completed in 2016 would be in 2017. Staff is also proposing that residents be given the opportunity to levy the assessments over a 29 -year period City Council Work Session October 27, 2014 Page -5- instead of a 20 -year period. The Finance Director provided Council with figures showing the financial advantages and the overall long term costs. If property owners choose the 29 -year assessment they would be required to notify the City of that option within 30 days since it would affect the amount of debt being issued by the City. Finance staff is proposing to also offer the option of a 2% discount, the amount of debt issuance costs, if property owners pay in full in the first 30 days. These financing options, if approved by Council, will be put on the City's website so that property owners have an opportunity to review the figures and consider which option works best for their individual situation. Residents will also be advised that the City could possibly levy additional assessments prior to the property owner fully paying the 29 -year option Council members agreed that due to the higher than normal project costs and resulting assessments, residents should be offered as many financing options as possible. 8. 2015 Budget a) 2015-2019 CIP Transportation Chris Petree provided an overview of Transportation CIP projects previously discussed by Council including the CR 50/60 roundabout, traffic signal improvements on Cedar Avenue, preliminary design and engineering for CR 50 from Holyoke to Cedar, design of Dodd Blvd. between 18511 Street and 194' Street, CR 50 reconstruction expansion from CR 60 to Dodd Blvd. including an economic development and engineering study, and miscellaneous street reconstruction and pavement management projects. Staff is investigating possible funding options for a possible intersection upgrade at 172"d Street/ CR 5. Some funding is likely to be needed for Ipava Avenue pedestrian safety improvements. Council Member Swecker appreciates keeping the Kenrick Avenue extension on the list for possible future consideration. Feller reviewed annual costs and various funding structures that would affect the annual tax levy. The City's share of the 2015 Street Reconstruction project is approximately $7M. Water main replacement costs will result in a water rate increase. Spreading the debt over three years will maximize the Municipal State Aid financing capacity for the next five years. Net debt outstanding at the beginning of 2014 was $96M. By the end of the five year period it will be approximately $145M. This equates to approximately $2,300 per capita at the end of five years, including special assessments. A strong credit rating results in favorable interest rates. The City's credit rating is based on several factors including debt as a ratio to full market value, net debt compared to operating revenue, fiscal management and demographics. Anderson asked if any of the projects could be pushed out a few years to not add more debt to 2015. Swecker stated that several projects were already delayed as a result of the recession. City Council Work Session October 27, 2014 Page -6- Staff is recommending moving gradually to a "pay-as-you-go" method rather than issuing more debt every year. Antenna lease revenues that come from water towers currently become part of the water trunk fund which is used for infrastructure construction and replacement. Other cellular lease revenue goes into the general fund. In order to help mitigate the debt all antenna lease funds could be appropriated to the utility operating fund to eliminate future need to finance water main replacement with water rate increases. Lakeville currently has the second lowest water rates in the metro area. Anderson believes those rates should be marketed as part of economic development. Little asked if Council members were still open to discussing franchise fees. Swecker supports an increase in existing fees to be used for specific related costs, but does not support establishing new taxes in the form of franchise fees. LaBeau believes that franchise fees could be a fair way to spread costs over the community, fees that come as part of the building permit hurt the new taxpayers. Davis stated that he is not open to implementing franchise fees. Little suggested Council consider using franchise fees to pay down the escalating debt. Feller advised Council to begin the budget process early in 2015 by looking at 5 -year projections at the end of the first quarter when more complete data is available. At that time Council can look at debt implications in order to make sound fiscal decisions. Little reiterated his belief that there is a financial structuring problem and something needs to be done. LaBeau stated that taxpayers need to either be willing to pay for the services or give something up. Debt will still be there if revenue from permits goes down. Three separate bond issues will be spread out over 2015, 2016, and 2017. Staff suggests requesting an advance in Municipal State Aid funding from Dakota County. b) General Fund - New Staff Positions Chief Long is requesting an additional officer for the Police Department. He stated that one of his first directives from Council was to conduct a full department review, resulting in a major reorganization with improved stabilization. An additional officer is needed to assist with social service calls and would improve call response times. Deputy Chief Kornmann stated that the department is currently short staffed due to military, injury and family leaves. It is estimated that there will be a need for one officer per year to be added to accommodate projected population growth. Council members asked how much overtime would be saved with the presence of an additional officer. Staff will provide that information. Fire Chief Meyer introduced District Chiefs Rod Koch and Todd Sellner who are in charge of safety and equipment. Chief Meyer stated that the same amount of training is needed for a volunteer or full time paid fire fighter. The new Assistant City Council Work Session October 27, 2014 Page -7- Chief position would administer, facilitate and document all department training, manage the duty crew on a daily basis, and take charge in the chiefs absence. Little asked if the job could be accomplished with a lower level position. Meyer stated that volunteer fire fighters' time is already stretched and they are challenged with balancing their personal life and fire fighter duties. Adequate training is critical to the safety of the fire fighters. Currently the chief is doing most of the training due to the regular training officer being out on medical leave. Swecker asked if there could be a part time position in charge of the duty crews. Meyer stated that those who are doing the job are already doing additional part-time work. Little stated that an assistant chief could also work on recruitment for the department, which has become an issue nationally. Hiring of this position would mean additional time for the chief to focus on other duties and mandates. Positions in the Human Resources and Finance Departments have several commonalities. Both departments have staffing needs and a number of opportunities exist for cross training and department backup. The Finance Director recommends postponing this position until a new City Administrator is on staff. Swecker commended staff on their dedication, leadership, and ability to work together. Davis stated that the Personnel Committee has discussed the need for backup resources in several areas. Cindi Joosten stated that new reporting requirements and additional mandates with health insurance will be more time consuming. Health Partners will assist with the City's wellness program. Council directed staff to confirm the Assistant Fire Chief and Police Officer positions as detailed in the staff recommendations, and to set aside funding for the shared Finance/ Human Resources position. Anderson is comfortable putting these positions in the budget but was hoping for a midway point for the fire position. LaBeau stated that there is a risk in having a large city with an understaffed volunteer department. Davis would also support the three positions. Council directed staff to include the police and fire positions in the budget for 2015 and to set aside funds for the third position, as discussed. c) Utility Fund Budget (water, sanitary sewer, street lights, environmental) Feller stated that the budget will be brought back one more time at the November 12 work session. Staff is recommending rate increases in water and sanitary sewer for major maintenance water main replacement. The utility rates will increase approximately 3%. Street light rates will be increased separately by Dakota Electric and Xcel Energy. Replacement of street lights on Kensington Blvd. has been delayed until 2016 and will be completed as part of the street reconstruction project. City Council Work Session October 27, 2014 Page -8- The Public Works Director is recommending a part-time forestry position to be funded with environmental resources/surface water management fees; currently the City has no staff member with tree expertise. Council members asked if it could be a collaborative approach with Apple Valley or Dakota County. Staff will explore this option. d) Tax Increment Financing Projects Feller provided an overview of retiring TIF districts and where the various funds can be expended. This is an informational item for Council; no action is needed at this time. e) Other LaBeau asked if the Planning Commission vacancy would be advertised or filled in March when others are appointed. Kuennen stated that the open position will be advertised. Anderson asked if temporary cautionary signage could be installed on Dodd Blvd. now that winter weather is approaching. Staff will check with the School District and Dakota County to determine if there are any plans. 9. Adjourn Mayor Little adjourned the meeting at 10:00 p.m. Respectfully submitted, 1_cd . "'nj,,) Ju ' awkins, Deputy Clerk Matt Little, Mayor