HomeMy WebLinkAbout02-23-15 WSCITY OF LAKEVILLE
CITY COUNCIL WORK SESSION MINUTES
February 23, 2015
Mayor Little called the meeting to order at 6 p.m. in the Marion Conference Room at City Hall.
Members Present: Mayor Little, Council Members Swecker, and LaBeau. Council Member
Anderson participated via video conference.
Absent: Council Member Davis
Staff present: Justin Miller, City Administrator; Allyn Kuennen, Assistant City Administrator;
David Olson, Community and Economic Development Director; Dennis Feller, Finance
Director; Brett Altergott, Parks and Recreation Director; John Hennen, Parks Superintendent;
Chris Petree, Public Works Director; Monica Heil, Operations and Maintenance Engineer; Zach
Johnson, City Engineer; Sue Palm, Communications Manager; Jeff Long, Police Chief, John
Kornmann, Deputy Chief; Judi Hawkins, Deputy City Clerk
2. Citizen Comments: None
3. America's Best Communities Grant
Dave Olson stated that communities with a population between 9,500 and 80,000 are being
invited to participate in America's Best Communities competitive grant program sponsored by
Frontier Communications, DISH Network and CoBank. The purpose of the grants is to assist
cities with defining and developing their vision for increasing economic development and
creating positive change. Olson stated that the applicant team has identified the greatest
challenge to economic success is the lack of work force availability, especially the unmet needs of
existing businesses. The Chamber of Commerce will be the designated grant applicant since the
applicant is required to have an IRS -approved non-profit status.
The applicant team, which consists of City, Chamber of Commerce, and School District 194 staff,
has been meeting on a regular basis to prepare the grant application for submission. Grants will
be awarded to cities which succeed at various levels of the competition. The final eight grant
applicants would each receive $100,000; the first, second and third place recipients will be
awarded $3M, $2M and $1M, respectively. If Lakeville's grant application is successful, other
partners will be invited to collaborate on the goal of workforce development.
The Chamber Board of Directors authorized submittal of the application at their February 271
meeting. Superintendent Lisa Snyder stated that the School District is very excited about the
opportunity to work with the Chamber and the City on economic development. Council
Member Swecker appreciates the empathy with the workforce challenges being faced by the City.
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Mayor Little suggested highlighting the geographic location of the City and the success of the
school district within the required letter of support.
Council directed staff to proceed with the application and to add formal authorization to the
next regular agenda for consideration.
4. 2014 Unencumbered Fund Balance Policy
Dennis Feller stated that the 2015 adopted budget included allocation priorities for the 2014
unencumbered fund balance. The first major priority was $85,000 for Land of Amazement;
second was $100,000 to the 2015 Street Reconstruction project; the next $300,000 was to be used
for equipment and park improvements; and any remaining funds would also be allocated to 2015
Street Reconstruction. After the budget was adopted there was uncertainty whether the street
reconstruction priorities (#2 and #4) were to go to the total project, or to the City's share of the
project cost. Preliminary general fund operation funds are higher than anticipated by about
$932,000 as a result of personnel under -spending by most departments and favorable weather
conditions resulting in low salt consumption and minor overtime. In addition there were a
higher number of building permits than anticipated at the end of the year. Applying the
unencumbered funds to the project would reduce the project's special assessments; applying the
funds to the total project would reduce the City's cost and benefit taxpayers city-wide.
Council Member Anderson suggested waiting to make a decision until information is available
regarding the increased street reconstruction costs as a result of corrosive soils. Council Member
Swecker asked how the additional funds could affect the 2015-2019 CIP. Feller stated that the
Public Works Director will be asking for Council's direction on street reconstruction both in the
scope and timing of future projects. Council could consider delaying some projects in order to
keep the tax levy down, while accelerating other projects in the most needed areas. Miller added
that a mill and overlay reclamation that doesn't include utilities is less expensive but will not last
as long. Little wants to begin paying down debt and is not comfortable making changes to
adopted policy. He believes it is more equitable to contribute to the City's portion of the project,
which benefits all of the taxpayers; other Council members agreed.
Council members directed staff to allocate the 2014 unencumbered fund balance to the City's
portion of the 2015 Street Reconstruction Project.
5. Heritage Center Membership Fee Discussion
As a result of increased non-resident fees in 2013 there was a significant loss of memberships.
Brett Altergott stated that the Active Adults Committee has requested the City consider reducing
membership fees for non-residents to provide an incentive for them to return as members, and
increasing annual membership fees for residents. The advisory group is also requesting
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elimination of the punch card payment system for program participation. Patty Ruedy stated
that the punch card system is administratively challenging and now that the mortgage at the
Heritage Center has been paid members believe the cards should be eliminated. Altergott stated
that punch cards have also contributed to a decrease in program participation.
Anderson supports moving to a simpler system but asked if there is another plan if the
anticipated revenue is not generated. Altergott stated that punch card revenue was not as good
as anticipated. Pre -registration will have the advantage of knowing in advance if costs will be
covered by the number of participants who have signed up.
LaBeau asked if the Senior Club is continuing to deposit fundraising revenues into their own
bank account. She believes the City should have the first choice of fundraisers to insure that any
shortfalls are covered. Ms. Dexter stated that funds remain in the account from before the
Heritage Center was opened, and no additional funds have been deposited. Swecker stated that if
there is a program or need that the members wish to fund they should have that option; LaBeau
stated that it needs to be clarified to the membership that revenues from fundraisers are the
City's dollars and should be used first for program shortfalls.
Council directed staff to prepare the necessary resolution for adjusting the Lakeville Area Active
Adults membership fees and eliminating the punch cards.
6. Pioneer Plaza Design Options
As a result of the need to annually replace deteriorated pavers at the Pioneer Plaza, Council
approved $37,000 in the 2015 budget to complete the following: 1) replace the pavers with
stamped colored concrete; 2) remove and replace the existing water fountain with a new water
feature; and 3) remove and replace the existing spruce tree on the west end of the plaza. Brett
Altergott introduced Tony and Laura Westrud from Architectural Landscape Design, Inc. (ALD)
who have submitted a proposal within the $37,000 budget for the improvements. Their design
replaces the existing pavers with a concrete walkway in a combination of broom finish and
stained/stamped border, and replaces the existing fountain with a granite boulder fountain. The
new fountain would be engraved with the original Pioneer Plaza train graphic and wording from
the original 1990 dedication.
The DLBA has reviewed the draft plan and was supportive of the improvements. Little likes that
there will be something new and fresh to draw visitors to the downtown as directed in Envision
Lakeville; however, he believes more consideration and needs to be given to how the space will be
used. The pioneers' plaques will remain in their present locations. Civic groups will be given the
opportunity to support the project with the purchase of a bench with their logos displayed.
Other ideas for uses such as a public art display were also mentioned. Council Member
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Anderson believes it is important to move forward with the project so it can be completed by
summer. LaBeau would like to see a Lakeville flag flying with the American flag at the park.
Council directed staff to proceed with the project while continuing to explore park designs based
on anticipated usage.
7. Dog Park Location Discussion
Brett Altergott stated that several potential park sites have been considered for the proposed off -
leash dog park. Because of the noise that can come from a dog park staff prefers it not be located
in a residential neighborhood. Adequate nearby parking is an important component, as is clean
drinking water. The Parks, Recreation, and Natural Resources Committee identified a usable 13 -
acre site at the front of Ritter Farm Park. Staff is working with the US Fish and Wildlife Dept.
due to the area wildlife. The dog park is required to be located 350 feet away from the nearby
eagle nesting area. LaBeau asked if the dog park at Ritter Farm would be detrimental to families
whose children might be frightened by dogs. She mentioned that there is another large flat area
behind Aronson Park that might be feasible for a dog park. Altergott stated that the proposed
site is not near the actual entrance to Ritter Park but is a separate area near I-35, and the 13 -acre
dog park would be fenced. A small pond is located within the area which would be an attractive
feature for many visitors. LaBeau asked about liabilities; Altergott stated that parks have some
recreational immunity and the City is protected by general liability insurance. Anderson asked
about parking; Altergott stated that an adjoining gravel parking lot would be part of the project.
Staff is working with MnDOT to determine if posts which are already in place along 35W can be
shared for the recommended fencing. Little believes it is a good use of some underutilized space
and suggested planting trees along the border as an additional sound barrier.
Staff estimates the initial cost to be $60-75,000 for the infrastructure including water, electricity,
fencing, gates, parking lot, waste bags/dispensers, and lighting. Staff will explore opportunities
for sponsorships or grants. Altergott believes the soonest construction could be added to the
Park CIP would be 2016 or 2017.
Council directed staff to continue to pursue cost estimates and provide additional information as
it becomes available.
8. Street Reconstruction Plan Update
Chris Petree and Monica Heil presented information on the 2016-2020 Transportation CIP,
specifically regarding the Street Reconstruction Program. In 2009 and 2010 Council endorsed a
pavement management philosophy with goals to extend roadway life, predict future roadway
performance and establish future funding needs. Construction projects are currently driven by
pavement conditions and failing streets in an effort to increase the street Overall Condition
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Index (OCI). The objective is to reconstruct streets to urban section with a 40-50 year design
life. In 2013 Council chose to accelerate the street reconstruction program to take the failing
roadways from 36 down to six miles, increasing the costs from $32M over a 5 -year period to
$40M. This increased the overall expenditures for the project from $6M to $8M per year. Petree
stated that the discovery of corrosive soils has made it necessary to replace major water mains
and has increased the cost of the 2015 Street Reconstruction project from $14M to $23.4M. This
increased the projected five-year CIP from $40M to about $62M. As a result of the soil
corrosivity, testing has already taken place for the next street reconstruction projects. That
testing also discovered moderately to severely corrosive soils in all of the areas.
Ms. Heil stated that the ultimate goal of the reconstruction projects is to reconstruct streets with
a 40-50 year design life. In areas where corrosive soils have been found to be causing water main
breaks the water mains need to be replaced in conjunction with the street projects. Council is
being asked to consider three options for dealing with the large water main replacement needs.
Option #1 would be to continue with the street reconstruction project areas as designated in the
current budget, completely reconstruct the streets to a 40-50 year design life, and replace the
water mains in the project area. This would increase in the City's OCI, maintain the currently
designated project areas in the CIP, and reduce the miles of streets that are currently failing.
Sanitary sewer replacement is being evaluated as part of Option #1. Deterrents to this option are
budget considerations, i.e., funding, and debt financing.
Option #2 would refocus the project from reconstruction of streets to replacement of water
mains based on the conditions and breakage history, and delay the street reconstruction to a later
date. Some reprioritizing of project areas might be needed if this option is used and the streets
would continue to deteriorate.
Option #3 is a revised pavement management philosophy which combines street rehabilitation
with extension of the useful life of existing utilities. Cathotic protection would be installed to
reduce the frequency of watermain breaks and extend the life of the pipes to 20-25 years at a cost
of about 15% of water main replacement. This would reduce future water main breaks, increase
the OCI, and provide an opportunity to examine water rates in order to prepare for water main
replacement costs in the next 20 years. This plan proposes reclamation of roadway sections
using existing aggregate base, replacement of curb and gutter only where necessary, and some
replacement of storm sewer. The results would be a roadway and utility system that could be
expected to last 20-25 years or more. Some areas would not be conducive to this solution but
would require complete replacement.
Staff is recommending Council move forward with Option #3 including reevaluating the 2016-
2020 CIP and examining utility rates to anticipate replacement of the utilities in 20-30 years.
Staff is also asking for direction in developing recommendations for the 2016 project area
particularly North Lake Marion, which is a rural area with no curb and gutter and deteriorating
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streets. Council Member Anderson appreciates keeping North Lake Marion as a priority.
Council Member Swecker stated that the 2016-2020 CIP was based on road condition rankings
and asked how priorities can be shifted when other areas are also in need. Petree stated that this
option will allow the CIP to be followed as much as possible and neighborhood needs can still be
addressed. Heil stated that installation of cathotic protection is most cost efficient when done in
conjunction with street improvements. Heil stated that staff is working with Dakota County to
coordinate timelines for the North Lake Marion neighborhood in conjunction with the
reconstruction of the Co. Rd. 50/60 interchange and Orchard Trail.
LaBeau asked if the corrosive soils that have been discovered will affect pipe specifications in new
construction areas. Petree stated that the City's specifications are for either PVC or ductile pipe;
however, very few developers install ductile (iron) pipe. If soils are corrosive, ductile pipe is not
allowed. If developments are being built in areas where soils are known to be corrosive, the
developer is informed of the PVC requirements. LaBeau asked how cathotic protection works;
Petree stated that cathotic protection suppresses the ionic charges of the soil away from the pipe.
Cost comparisons for various options were discussed however specific costs are not available.
The water operating budget is not currently adequate to fund replacement of the water mains.
Little believes that it is more efficient in the long term to provide the best replacement possible
for the life expectancy to be 40 years rather than to need replacement in 25 years. LaBeau asked
about driveway replacement; Ms. Heil stated that if the water main is not being replaced, then
less curb and driveway replacement is necessary. Anderson suggested comparing the costs of all
the options before determining which option is best, which could change the timing of some
areas that are badly in need. Little wants to consider what is being received for the cost of each
option and suggested Option #4 could be to decrease the number of projects and spread the
timing out a few more years. Costs will increase over the years and he doesn't wish to challenge
future councils with the same issues.
Petree stated that the budget of $14M was based on expectations of soil conditions; however, the
reality is much closer to 70% more to replace the soils. Little supports a modified version of
Option #1. Mr. Miller stated that it will take a commitment to stay with the plan or to spread the
cost out over additional years. Council members believe the right answer is a combination of
Options #1 and #3 which provides the most long-term benefits. Feller stated that even with the
currently unknown figures there are several other considerations, including property values.
Staff will provide further cost information at a future work session. Council directed staff to
allocate the designated 2014 unencumbered fund balance to the City's share of the 2015 Street
Reconstruction project.
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9. County Road 50 Land Use/Economic Development Update
Chris Petree provided an update of the County Road 50 Land Use/Economic Development study
area. Staff has met with all the necessary business owners in the corridor. Zach Johnson
outlined a possible concept as proposed to the landowners. The county is developing a roadway
design to minimize impacts on the businesses. A secondary access backage road with three-
quarter access off of CR 50 between Ipava Ave. and Dodd Blvd. would also provide full access at
Icenic Trail. The County would remove the full accesses off of CR 50 which would improve
mobility. Several existing single-family homes along CR 50 would be removed. The trail which
currently exists on the south side of CR 50 would be relocated to the north side along the backage
road. The backage road would be 22-24 feet wide, adequate for two-way traffic.
Johnson stated that in addition to access opportunities, parking and the desire of the businesses
to expand are being taken into consideration. Once a preferred plan is established, a final design
will be completed; construction is anticipated for 2017. Screening is proposed between the
townhomes and the backage road. The County will share 55% of the cost if the accesses can be
removed from CR 50. LaBeau stated that the businesses need to be provided with goals and
options so they can make plans for the future of their businesses. Staff is confident that a final
concept and timeline will be determined this spring. Staff will continue to keep Council apprised.
10. 179'bStreet/Flagstaff Avenue Intersection Evaluation/Driver Feedback Sign
Chris Petree stated that an intersection control evaluation was completed and presented to
Council at the January work session. Staff then held a neighborhood meeting and received
constructive feedback from property owners. Strategies for speed control in the area include
installation of two driver feedback signs along Flagstaff, one for northbound, one for
southbound. Zach Johnson met with the City of Farmington to discuss the study. They also
recognize the speeding issues and are willing to take measures to increase driver awareness. Staff
is looking for direction from Council on expenditures for the traffic control devices and will
work with the City of Farmington to determine their financial support. Council directed staff to
proceed with the proposed project.
11. Cable TV Board Review/Restructuring
Council previously directed staff to explore the possibility of amending the responsibilities of the
Cable TV Board to bring it up to date with today's technology, and to rename the board to make
it more relevant. Staff compiled a brief history of the board and its changing functions over the
years. There have been several task force groups and initiatives over the years which have
included the Cable TV Board: a High Tech Subcommittee was formed to look at broadband and
expansion of infrastructure for economic development; a business telecommunications task force
was formed; and a broadband feasibility study was completed. Currently Dakota County CDA is
beginning a broadband initiative study to explore county wide fiber network opportunities.
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Staff is proposing three options for creating a telecommunications advisory group and is seeking
Council direction regarding the future function of the Cable TV Board. Options could include:
1) Form a short-term research group with the option of creating an advisory board which could
be comprised of staff from City, County and the School District, as well as representatives of the
telecommunications industry, to review current technology and infrastructure and develop a
long-range plan with which staff could work.
2) A typical advisory board could be formed which would consist of community members with
technology expertise to work with staff on various goals and strategies to increase technology
availability; and
3) A technical advisory board could be formed consisting of technology staff from the City,
Dakota County and the School District to review existing efforts as well as previous studies and
reports, define long-term goals and strategies, and make recommendations to the City Council
for expansion of the City's telecommunications infrastructure.
Staff is further recommending that in order to maintain consistency, the current Cable TV Board
remain in existence until the cable franchise has been renewed and adopted by Council.
Council Member Swecker asked if this is something that could be included in a partnership with
other Dakota County communities, such as with Hipp. Justin Miller stated that a study was
recently presented to the Dakota County mayors/managers group, with former Burnsville city
manager Craig Ebling acting as a consultant/liaison for the fiber management group. Swecker
added that it would be beneficial to locate the existing fiber assets in the City. Anderson
suggested the group title reference digital connectivity. LaBeau supports keeping the current
Cable TV Board and agrees it is important to combine efforts with the county whenever possible
and asked if the communities in Dakota County are competing for businesses? Miller stated that
county is currently installing fiber as roadway projects are completed.
Council directed staff to prepare a list of tasks for a short term research group, while keeping the
existing Cable Board in existence. Sue Palm stated that a forward -thinking task force could
complete some of the detailed items that are missing from the knowledge base.
12. Pan-O-Prog Police Update
Police Chief Jeff Long stated that based on conversations after last year's Pan-O-Prog and
behavioral issues related to alcohol, the Police Dept. is asking for direction from Council on
whether to continue to allow people to bring alcohol to the parade and drink openly. Long is
suggesting an education campaign prior to Pan-O-Prog or to try to stop public drinking and
encourage people to visit businesses instead. The current culture might be difficult to change.
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Swecker believes the policy has mostly been to look the other way, unless there are problems.
Long stated that the real issues involve both ordinance violations and late night fights. Council
has appropriated additional funds to expand enforcement during Pan-O-Prog. Anderson agrees
that working with the businesses to not allow alcohol to leave their premises along with an
educational campaign prior to Pan-O-Prog makes the most sense. He does not wish to create
undue challenges if people are not causing problems at the parade or cruise night. Long added
that the Lake Marion boat races have been cut back to a Sunday -only event, rather than Saturday
and Sunday; this will be much more manageable.
13. Information regarding DUI Officer Grant
Deputy Chief John Kornmann stated that a DUI officer grant of $156,000 has been received from
the Minnesota Department of Public Safety, Office of Traffic Safety. If Council allows acceptance
of this grant, the funds will be used for an additional squad car fully equipped, with the exception
of an in -car computer. Additional funds that will be requested from the city's budget will be for
equipment maintenance for the squad car, gas, an in -car computer, and uniforms for the officer.
An experienced officer will be put in this position and an additional new officer will be added.
Council supported acceptance of the DUI Officer grant.
14. Other
Staff and Council members have been working with local property owner George Warweg on the
purchase of approximately six acres of property near Lake Marion. A purchase agreement was
recently signed by the landowner who has requested closing take place this fall, following harvest.
Staff will place this item on the next Council agenda for approval.
The deadline for submitting applications for advisory board openings is February 26. Staff will
schedule interviews for the evening of March 9t'.
15. Adjourn
The meeting adjourned at 9:17 p.m.
Respectfully submitted,
Ju ' awkins, Deputy City Clerk
Matt Little, Mayor