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HomeMy WebLinkAboutItem 06.b CITY OF LAKEVILLE CITY COUNCIL MEETING MINUTES July 20, 2015 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: Justin Miller, City Administrator; Roger Knutson, City Attorney; Jeff Long, Police Chief; Chris Petree, Public Works Director; David Olson, Community & Economic Development Director; Jerilyn Erickson, Finance Director; Brett Altergott, Parks & Recreation Director; Allyn Kuennen, Assistant City Administrator; Daryl Morey, Planning Director; Judi Hawkins, Deputy Clerk 3. Citizen Comments None 4. Additional agenda information. Mr. Miller stated that staff will present a revised resolution relating to the bond sale and provide details under agenda Item 7 5. Presentations/Introductions Brett Altergott stated that the cost of the new sound system at the LAAC was defrayed with donations from community organizations. Checks were presented by Paul Haglund of the Lakeville Lions ($1,500); Cindy Murphy of Expressions Community Theatre ($7,000); and Bob Erickson, representing Friends of the Lakeville Area Arts Center ($16,276.75). The donations will pay-half of the cost of the replacement system; Mr. Altergott expressed his appreciation for these partnerships. Mr. Erickson noted that the debt on the Arts Center has been paid in full. Brett Altergott presented the June 2015 Parks and Recreation monthly report, highlighting activities at the Arts Center; trail and field maintenance; beaches; and recreation programs. Consent Agenda Motion was made by Swecker, seconded by Davis, to approve the following consent agenda items: a. Claims for payment City Council Meeting Minutes, July 20, 2015 Page 2 b. Minutes of the July 6, 2015 City Council meeting. c. Police Department Policy Manual Updates d. Agreement with EMI Audio for the Lakeville Area Arts Center sound system and Resolution No. 15-86 accepting donations e. Agreements with Robert Meany, Phil Halstead, Bernie King and Relativity the Band for performances at the Lakeville Area Arts Center f. Resolution No. 15-87 requesting the Minnesota Commissioner of Transportation perform a speed zone study on 170th Street from Pilot Knob Road to Lakeville’s eastern city limits g. Resolution No. 15-88 accepting grants and donations to the Parks & Recreation Department h. Resolution No. 15-89 vacating public drainage and utility easements in Avonlea i. Award contract for City Hall rooftop unit S3 replacement to SCR, Inc. j. Resolution No. 15-90 approving the conveyance of vacated Eagleview Drive right-of-way to Spirit of Brandtjen Farm Corp. k. First Amendment to Professional Services Agreement with Barr Engineering Co. and Summergate Companies LLC l. Final acceptance of public utilities in Hosanna 4th Addition m. Resolution No. 15-91 approving the 2015-2019 Capital Improvement Plan n. Resolution No. 15-92 authorizing the acquisition of real property located at 20078 Kenwood Trail o. Airlake monopole and Georgetown Way monopole modification agreements p. Resolution No. 15-93 authorizing the sale of vehicles q. Resolution No. 15-94 approving a grant agreement with the MN Dept. of Commerce for an auto theft prevention program r. Ordinance No. 945 changing a street name in Kenwood Hills City Council Meeting Minutes, July 20, 2015 Page 3 s. Partial Release of Development Contracts for Heritage Commons Voice vote was taken on the motion. Ayes – unanimous 7. General Obligation Improvement Bonds, Series 2015A Jerilyn Erickson summarized the five projects that are included in this bond issuance: 2015 Street Reconstruction (Phase 1), Kensington Boulevard, Hamburg Avenue, CSAH 50/60 roundabout and expansion, and the Ipava Avenue traffic signals at 175th Street and 165th Street. Staff recently participated in a bond rating call where Moody’s assigned the City of Lakeville a favorable rating of Aa1. Because of the Aa1 rating, a lower interest rate was received, in turn reducing the bond issuance from $17,585,000 to $16,545,000. The 2016 tax levy impact was originally estimated at $438,000 but has been reduced to $407,000. Dave McGillivray from Springsted highlighted reasons for the lower interest rate and how that will affect the bonds. Seven bids were received via internet bidding at 10:00 a.m. this morning; Raymond James was the lowest bidder at 3.1449%. Based on the market at the beginning of June the interest rate was estimated to be 3.7%. The lower than anticipated interest rate caused a reduction of $1,040,000 in the bond issuance and future tax levies. The City’s credit rating of Aa1 is just below the highest possible, which is AAA. Factors which contributed to Moody’s rating include Lakeville’s tax base and growth, a healthy financial profile with sizable operating fund reserves, and above average debt burden. Motion was made by Davis, seconded by Swecker, to approve Resolution No. 15-95 authorizing the issuance and sale of $16,545,000 General Obligation Bonds Series 2015A. Roll call was taken on the motion. Ayes –Little, Swecker, LaBeau, Davis 8. ImageTrend Development LLC Dave Olson provided a brief overview of the agreement entered into with ImageTrend in 2009. At that time Council approved the sale of a city-owned lot to ImageTrend adjacent to their existing building in Fairfield Business Campus. According to the terms, ImageTrend paid one- third of the sale price and the City agreed that the remaining two-thirds would be forgiven if the first phase of their 50,000 total square foot expansion was completed by the end of 2011 and the second phase by the end of 2013. This was later amended to be completed by the end of 2015. The agreement also required creation of a minimum of 21 additional jobs. The company has completed the first phase, a 27,000 square foot expansion, and increased the number of employees from 100 to 160. At this time ImageTrend believes they will not need additional office space for some time and is requesting a three-year extension for the second phase until the end of 2018. The EDC reviewed the request at their April 28, 2015 meeting and recommended approval. City Council Meeting Minutes, July 20, 2015 Page 4 Mr. Olson introduced Mike McBrady, ImageTrend President and CEO. ImageTrend is a software company specializing in building specialty data collection and reporting systems for hospitals, EMS and fire agencies, emergency services staff management, revenue recovery, human resources, and emergency preparedness. They are beginning to expand outside of the United States and are expecting 18-20% growth this year. They anticipate continuing to add employees and building and moving into their second building by 2019. Mayor Little stated that he is impressed by the ImageTrend business model and is happy to support their presence in Lakeville. Motion was made by Swecker, seconded by Davis, to approve the Third Amendment to Contract for Private Development for ImageTrend Development LLC. Roll call was taken on the motion. Ayes – LaBeau, Davis, Little, Swecker 9. Unfinished business: Council Member LaBeau reminded fellow Council Members and the public of National Night Out on August 4. Residents can still register their neighborhood picnic at the Police Dept. Council Member LaBeau had checked the status of Tom’s Big Ride in which Council Member Anderson is currently participating. At this time the group has logged 842 miles in 14 days. 10. New business: None 11. Announcements: Next regular Council meeting, August 3, 2015 Council work session, July 27, 2015 12. Adjourn: Mayor Little adjourned the meeting at 7:43 p.m. Respectfully submitted, _______________________________________ Judi Hawkins, Deputy City Clerk _______________________________________ Matt Little, Mayor