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HomeMy WebLinkAbout11-17-14CITY OF LAKEVILLE CITY COUNCIL MEETING MINUTES November 17, 2014 Mayor Little called the meeting to order at 7:00 p.m. in the Council Chambers at City Hall. The pledge of allegiance to the flag was given. Members Present: Mayor Little, Council Members Davis, Swecker and LaBeau Absent: Council Member Anderson Staff Present: Allyn Kuennen, Interim City Administrator; Roger Knutson, City Attorney; Jeff Long, Police Chief; Chris Petree, Public Works Director; David Olson, Community & Economic Development Director; Dennis Feller, Finance Director; Brett Altergott, Parks and Recreation Director; Daryl Morey, Planning Director; Charlene Friedges, City Clerk 3. Citizen Comments None 4. Additional Agenda Information Mr. Kuennen provided additional information for agenda items 10 and 11. 5. Presentations/Introductions Chief Long presented the October Police Department monthly report. Mr. Altergott presented the October Parks & Recreation Department monthly report. 6. Consent Agenda Motion was made by Davis, seconded by Swecker to approve the following consent agenda items: a. Claims for payment b. Minutes of the November 3, 2014 City Council meeting c. Minutes of the November 3, 2014 special Council meeting d. Minutes of the November 12, 2014 special Council meeting e. Minutes of the October 27, 2014 Council work session f. Agreement with Fenne's Outdoor Services for snow removal City Council Meeting Minutes, November 17, 2014 Page 2 g. Joint Powers Agreement and Agreement with the Minnesota Department of Natural Resources for installation, maintenance and use of two test holes or water level observation wells on private or public land h. Annual Plan Agreement with the State of Minnesota for professional/technical services i. Agreement with the Minnesota Department of Natural Resources for snowmobile trail maintenance and grooming j. Resolution No. 14-109 requesting a speed zone study on Flagstaff Avenue from Dodd Boulevard to Lakeville's southern city limits k. Resolution No. 14-110 requesting a speed zone study on Ipava Avenue from 202nd Street to County Road 46 1. Acceptance of improvements and final payment to Minnesota Dirt Works, Inc. for Lake Marion water quality improvements m. Ordinance No. 927 amending Title 1, Chapter 6 of the Lakeville City Code concerning the City Administrator Voice was taken on the motion. Ayes - unanimous 7. Public Hearing - Downtown Special Service District Mayor Little opened the public hearing on the imposition of a service charge in the downtown special service district. Mr. Olson introduced Paul Haglund and Ann Kutzler of the Downtown Lakeville Business Association (DLBA). Ms. Kutzler presented the annual report and proposed budget of the DLBA. She outlined the benefits of a special service district, along with key objectives for Special Service District No. 1, which is to promote downtown Lakeville. Council Member Davis asked Ms. Kutzler to report back to the City Council early next year to provide an update on any new ideas for promoting downtown. Mayor Little invited questions and/or comments from the public. A representative of Metro Equity Management spoke in support of the special service district. City Council Meeting Minutes, November 17, 2014 Page 3 Dean Simon of Ace Hardware & Paint stated he feels the special service district has possibly outlived its usefulness and needs to be re-evaluated. He urged the DLBA to look at ways to make the allocation of this tax more equitable for all types of retail business. Mr. Olson explained that the allocation of the service charge is based on the net tax capacity of the commercial values of the properties in the district. City staff has not been able to come up with a more equitable way of calculating the allocation. Terri Tischer of Perfectly Random spoke in support of the special service district. She expressed her appreciation to the DLBA for its efforts in promoting downtown. Christina Murto of Creative Design spoke regarding the redevelopment of the DLBA website this past year and the positive effects the website has had in drawing awareness to downtown Lakeville. Motion was made by Davis, seconded by LaBeau to close the public hearing. Voice vote was taken on the motion. Ayes - unanimous Mayor Little urged the DLBA to be cognizant of the businesses that may not be traditionally reaping the benefits of the service charge and work toward including some events that are tailored toward those businesses. He pointed out the significant financial benefit to all downtown businesses that is gained from the work of the DLBA, beyond that of the $27,500 service charge. Motion was made by Davis, seconded by LaBeau to approve Resolution No. 14-111 imposing a service charge for Special Service District No. 1 for taxes payable 2015. Roll call was taken on the motion. Ayes - Davis, Little, Swecker, LaBeau 8. Public Hearing - 2015 Street Reconstruction Mayor Little opened the public hearing to consider the 2015 street reconstruction project. Mr. Petree provided a brief overview of the project location. Monica Heil, Operations & Maintenance Engineer, provided an overview of the 2015 street reconstruction project. She explained that due to the size and scope of the improvements, this project is proposed to be phased over two construction seasons with two separate contracts for construction. Phasing the project will help to minimize disruption to property owners within the project area. City Council Meeting Minutes, November 17, 2014 Page 4 The total estimated cost of the project is $23,420,180. Approximately $6.3 million (40% of the project cost) will be assessed against the benefiting properties, consistent with the City's assessment policy. Assessments are estimated at $8,116 per single family unit and $4,058 per townhome/duplex unit. Assessments can be paid in full without interest by November 15, 2015 for Phase 1 and by November 15, 2016 for Phase 2. Property owners have the option to request a 29 -year assessment period, which is the maximum allowed by State Statute. The interest rate is estimated at 4-5 percent. Property owners can receive a 2% discount if the assessment is paid in full within 30 days of the assessment hearing. Mayor Little invited questions and/or comments from the public. Resident asked where the 45 reported watermain breaks were located. Staff response: They were within the entire project area. Resident asked about deterioration of the pavement and the maintenance schedule. Staff response: The streets will be constructed of a different standard and design than what currently exists. Road designs have changed significantly since the 1980s. The clay soils that exist today hold water and do not provide good drainage, causing pavement deterioration. The granular subgrade that is being installed will improve drainage and, as such, this road is designed to last at least 40 years. The City follows a regular maintenance schedule on all of its streets. However, deterioration in this area was not due to the lack of regular sealcoating; it was caused by the subgrade beneath the road. Resident questioned the use of plastic pipe and suggested the City use local companies who sell ductile iron pipe. He also expressed concern with the current alignment of the pipe in some residents' yards. Staff response: Plastic pipe is the standard in areas with corrosive soils and is also less expensive than ductile iron pipe. The materials used meet all testing requirements of the American Water Works Association. The City does not dictate the material suppliers, only the standards that the contractor must adhere to. Also, the City is looking into abandoning the old lines and relocating the pipe from residents' yards into the street. Resident stated her neighborhood supports the improvements due to poor drainage in the area. However, she questioned the additional $3,000 assessment from what was initially presented and asked the City to come up with alternative financing to reduce the assessment back to the original $5,000. Staff response: City will work with residents to install drain tile services to their property as needed. City has been able to reduce the estimated assessment by utilizing existing materials and will continue to look for ways to reduce the construction costs wherever feasible. City Council Meeting Minutes, November 17, 2014 Page 5 Resident asked if the soils were tested when the subdivision was initially constructed; also questioned the lack of assessment information in the notices that were mailed to the residents. Staff response: These homes and streets were constructed before soil testing standards were published. The letter that was mailed to residents regarding tonight's public hearing contained the information required by state statute for public improvements. The City posted more detailed information on its website. Resident asked about last year's street improvement project on the east side of Cedar Avenue and whether those costs increased significantly from the original estimate. Will assessments be the same for both phases of construction? Do residents need to be concerned about the copper lines beyond the curb stops? Staff response: The higher cost for the 2015 project is due to the roadway section and drain tile that is necessary because of the clay soils in this area. Significant measures must be taken so that these streets last 40 years. Historically, the final assessments have been lower than what was estimated in the feasibility report. This depends on the bid results. There will be one assessment hearing in April, and the single family unit assessment that is adopted at that time will apply to both construction seasons. No concerns with respect to copper services; City obtains a maintenance bond to guarantee the work for a period of time after the project. Resident comments regarding the poor condition of the road; improvements are needed but residents are not happy with the cost. He questioned why the City did not replace the soil when the streets were built. Resident asked if the City has a contingency plan if the bids come in higher than expected. Staff response: When the streets were first built, soils testing and street standards were much different than they are today. Bid prices have been increasing slightly from what they were several years ago; however the City has obtained quality bids in the past and, based on the conservative numbers provided in the feasibility report, expects to receive favorable bids for this project. There is a minor contingency in place, and any costs that exceed that contingency would be the responsibility of the City and not the individual property owners. Resident expressed concern regarding guest parking for a summer event. Staff response: Additional information regarding scheduling will be available to all residents when construction begins. The City and contractor will work with the property owners to assure that access and parking is available for any special events. Contractors are not allowed to work on Sunday. Newsletters will be sent to each property owner in the project area. The newsletters will include project updates and contact information for City staff and the individual on-site construction representatives. City Council Meeting Minutes, November 17, 2014 Page 6 Resident raised concern regarding potential impacts to the foundation of her home from heavy construction equipment. Staff response: Any such claims are the responsibility of the contractor. Machines are used for compaction of the soils; and the amount of hours spent in front of an individual house is dependent on the soil. Resident concerns regarding speed and traffic volumes on Griffon Trail, stating there is nothing in this project that will slow down traffic, additional traffic enforcement would be helpful. Staff response: Prior to the 2014 street reconstruction project, driver feedback signs were installed on Flagstaff Avenue, which reduced speeds significantly. The design in place today includes bump -outs and additional driver feedback signs. Staff intends to look at several options for traffic calming on Griffon Trail, bump -outs being one option. Results from the Flagstaff Avenue project will help determine what improvements would be beneficial on Griffon Trail. Resident comments regarding the mailed notices and question regarding the process for notifying property owners of their assessment. Staff response: This public hearing is for the purpose of discussing the validity of the improvement project. The proposed assessment, at this time, is only an estimate. An assessment hearing will be conducted in April, after bids are received and the actual assessments are calculated. At that point in time, residents will be invited to another neighborhood meeting and will receive a letter that states the actual amount of the assessment. All property owners will receive an official notice of the assessment public hearing. Resident expressed frustration with the cost of the project and urged the Council members to challenge the contractors to submit the lowest possible bids. Resident is in favor of the road improvements but questioned the safety of delivering potable water through plastic pipe. Staff response: Information regarding plastic watermain is available, and staff is confident that it meets all drinking water standards. Resident asked if any Federal or State programs might be available to assist with funding. Staff response: City has applied for and received a grant to address some of the sanitary sewer issues in this project area. City Council Meeting Minutes, November 17, 2014 Page 7 Resident expressed concern with the safety of bump -outs with respect to kids on bicycles. Resident asked if there is a warranty on the construction. Staff response: The City's standard warranty period is two years after completion of any street or utility improvements. Resident asked about driveway and landscape reclamation and how property values might be impacted as a result of the improvements. Staff response: City staff and on-site project representatives will work with property owners with respect to driveway and landscape reclamation. Staff is working with the City Attorney to have a benefit analysis prepared for the project area, as a whole. It is anticipated that this information will be available prior to the assessment hearing. Mayor Little reiterated the City's assessment policy and the potential impacts to past and future projects if the policy is changed or an exception is made for this neighborhood. Council members explained the challenges that they face in addressing the City's aging infrastructure. They assured the residents that they are doing everything possible to minimize the cost to the taxpayers. Motion was made by LaBeau, seconded by Davis to close the public hearing. Voice vote was taken on the motion. Ayes - unanimous Motion was made by Davis, seconded by Swecker to approve Resolution No. 14-112 ordering the 2015 street reconstruction project and authorizing the preparation of plans and specifications and advertisement for bids. Roll call was taken on the motion. Ayes - Little, Swecker, LaBeau, Davis Mayor Little recessed the meeting 10:07 p.m. and reconvened at 10:13 p.m. By unanimous consent, the Council amended the agenda to consider Item 11 at this time. 11. Fulford Group 18' Addition Jim Connelly of Appro Development requested Council approval of the Fulford Group 11 Addition. Mr. Olson presented the preliminary plat of Fulford Group 18' Addition, consisting of one industrial lot and one outlot on property located at 21350 Cedar Avenue in Airlake Industrial Park. A Comprehensive Plan amendment is being requested to re -guide the property from commercial to industrial use, and a zoning map amendment will rezone the City Council Meeting Minutes, November 17, 2014 Page 8 property from C-2 to I-2 to accommodate the expansion of the BTD Manufacturing warehouse facility. A Site Improvement Performance Agreement is being requested to allow site grading and sanitary sewer construction prior to City Council consideration of the final plat, subject to submittal of the required security. Motion was made by Swecker, seconded by Davis to approve the following in conjunction with the Fulford Group 1St Addition plat: • Findings of Fact • Resolution No. 14-115 approving an amendment to the Comprehensive Plan • Ordinance No. 929 rezoning property from C-2 to I-2 • Site Improvement Performance Agreement with BTD Manufacturing Roll call was taken on the motion. Ayes - Swecker, LaBeau, Davis, Little 9. Public Hearing - City Code Violations Mayor Little opened the public hearing to consider assessments for City Code violations. Mr. Morey stated there are eight parcels of property proposed to be assessed for violation of various city codes. During the past year, staff performed inspections and authorized the contractual mowing of grass, removal of weeds, and addressed property maintenance and sign ordinance violations. The total amount of the assessment is $2,986.27, which includes administrative costs and 18% interest. There were no public comments. Motion was made by LaBeau, seconded by Swecker to close the public hearing. Voice vote was taken on the motion. Ayes - unanimous Motion was made by LaBeau, seconded by Davis to approve Resolution No. 14-113 adopting assessment for City Code violations. Roll call was taken on the motion. Ayes - LaBeau, Davis, Little, Swecker 10. Public Hearing - Ordinance Amending Fees Mayor Little opened the public hearing on an ordinance amending fees. Finance Director Dennis Feller provided an overview of the proposed fee schedules, pointing out that the City has not raised fees since 2008. Mayor Little invited questions and/or comments from the public. City Council Meeting Minutes, November 17, 2014 Page 9 Joey Miller asked what happens when permits and development slows down and the fees are no longer coming in. Warren Isrealson voiced concerns with raising development fees, as it causes developers to raise the price of their lots. Council Member LaBeau stated she does not support the park dedication land requirement or the park dedication fee increase. Motion was made by LaBeau, seconded by Davis to close the public hearing. Voice vote was taken on the motion. Ayes - unanimous Motion was made by Davis, seconded by Swecker to adopt Ordinance No. 928 and Summary Ordinance No. 928 adopting fees; and approve Resolution No. 14-114 adopting the fee schedule. Roll call was taken on the motion. Ayes - Davis, Little, Swecker; Nay - LaBeau 12. City Administrator Employment Agreement Mr. Kuennen presented an employment agreement with Justin J. Miller, who will begin his employment with the City on December 29, 2014. Motion was made by LaBeau, seconded by Davis to approve an Employment Agreement with Justin J. Miller. Roll call was taken on the motion. Ayes - Little, Swecker, LaBeau, Davis Unfinished and New Business: None Announcements: Next regular Council meeting - December 1, 2014 Mayor Little adjourned the meeting at 10:57 p.m. Respectfully submitted, Charlene Friedges, City Mayor