HomeMy WebLinkAboutItem 06.c
CITY OF LAKEVILLE
CITY COUNCIL WORK SESSION MINUTES
July 27, 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 LaBeau and Davis. Council Member Anderson
participated via video conference.
Absent: Council Member Swecker
Staff present: Justin Miller, City Administrator; Allyn Kuennen, Assistant City Administrator; Jerilyn
Erickson, Finance Director; Chris Petree, Public Works Director; Zach Johnson, City Engineer; David
Olson, Community and Economic Development Director; Brett Altergott, Parks and Recreation
Director; John Hennen, Parks Superintendent; Judi Hawkins, Deputy City Clerk
2. Citizen Comments: None
3. Discussion Items:
a. 2016-2020 CIP
City Administrator Miller stated that tonight’s CIP budget discussion will also include non-programmed
projects. The next budget work session will focus on the General Fund and a third work session will be
scheduled in September if more discussion is needed. Staff’s goal is to have the 2016-2020 CIP and the
final budget approved concurrently in December.
Finance Director Erickson provided Council with revisions from the previously adopted 2015-2019 CIP
which can be used as a comparison tool to show proposed changes for the 2016-2020 CIP. A numbering
system will also be used this year to assist with referencing specific projects. Three of the five
components of the CIP will be addressed at this meeting: Transportation, Utilities, and Parks and
Recreation. Proposed project costs will be broken down into both City and County costs to better isolate
City responsibilities and identify funding sources. Only projects that are currently being considered are
reflected in the CIP, not those which have previously been approved. Estimated costs for
unprogrammed projects are not included in the totals for 2016-2020. Financial analysis, debt service and
tax levy impact will be available with the August work session materials.
Council Member Anderson wished to clarify that debt and tax levy figures are included in the financial
analysis to be presented.
• Transportation CIP/County Letter
Dakota County Transportation Engineer Mark Krebsbach was available for questions regarding City and
County joint projects included in the Dakota County CIP. Mr. Petree stated that the City Administrator
had forwarded a letter to the County on July 2 to inform them that staff was waiting for results of
discussions at tonight’s work session to determine which projects Council recommended for inclusion.
Petree outlined the two programmed projects included in the letter to the County:
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TP1: Dodd Blvd. reconstruction project (CSAH 60/185th Street south to 194th Street). This was part of
both the City and County CIPs and is planned for 2016 reconstruction to a four lane divided roadway,
including a traffic signal at the intersection of Dodd and 185th Street.
TP2: Kenwood Trail reconstruction project (south of CSAH 60 improvements to Dodd Blvd.) from a
three-lane design to a four-lane divided roadway with turn lanes.
Petree provided an update on the CSAH 50 project and the status of ongoing negotiations with property/
business owners or their representatives. Wilson Property Services will continue negotiations and staff
will provide updates as they are available. RFPs by the County for the CSAH 50 design have closed. Mr.
Krebsbach added that the County Board has reviewed the proposals and he believes progress on the
corridor is very positive. A JPA between the City and the County will need to be approved in order to
move forward.
Mr. Krebsbach provided additional comments on the unforeseen construction cost overruns of the
CSAH 50/60 roundabout project. Krebsbach stated that county staff is also disappointed with the
significant increase in costs. A discussion was held with the Board of Commissioners on June 2nd
regarding CIP cost estimating practices and budget amendments. Estimates were based on previous
projects and right of way acquisition costs were underestimated. There are five parcels that have still not
been finalized and final costs might not be known until after the project is complete. Every attempt is
made to estimate project costs as closely as possible so contingency funds are not tied up when they
could be used for another project. Unforeseen circumstances, supplemental agreements, and change
orders during construction can add a great deal of unanticipated costs.
The vast majority of projects come in under budget; although through the first half of 2015 the County
dealt with five budget amendments. Increased expenses have mostly been for right-of-way related costs;
project delivery and construction engineering costs; utility relocation costs; and timeliness of updating
cost estimates. Krebsbach apologized that specific information was not shared sooner. The County will
focus on improved cost estimating and timely communication on each project’s budget status.
Little asked if eminent domain would be an option for acquisition. Krebsbach briefly reviewed the
process and stated that an amenable property settlement is preferred and every effort is made to avoid
eminent domain or condemnation. LaBeau asked if property mortgages could impede the process.
Krebsbach stated that the two main acquisition components are the value of the property being taken
and the changes in valuation (damages) to the remaining property. Krebsbach suggested incorporating
additional verbiage in the agreements that clarifies each agency’s role and responsibilities.
Mr. Krebsbach stated that several factors contributed to the CR 50/60 project’s $1.89M cost overrun:
right of way acquisition (about 40%); increased cost for professional services and staff time negotiating
with property owners; higher than anticipated property settlements; utility relocations; railroad crossing
compensation; the City’s share of construction engineering; and traffic diversion including temporary
and permanent signal work on Ipava Avenue.
Council Member Anderson expressed his disappointment from a partnership standpoint in finding out
about the overrun after it had gone to the County Board. He asked how much of the increase is related
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to funds being reimbursed for county staff. Krebsbach stated that the cost of professional services
includes both consultants and county staff. The spreadsheets that were provided itemized costs for right
of way acquisition, design work, and anticipated engineering. Anderson suggested that the costs for
County staff could be borne by Dakota County. Krebsbach stated that both professional consultants and
staff costs are part of the delivery of a capital improvement project and part of the 45/55% division of
costs. Likewise, City work expenses are shared with the County.
Council Member Davis thanked Mr. Krebsbach for being at the meeting, helping Council understand the
circumstances, and offering solutions to prevent similar situations in the future. Krebsbach stated that
the City’s share would be approximately $1.1M.
Council Member LaBeau also expressed frustration with the difficult position in which the city is placed
along with the residents. She was surprised to learn that the traffic diversion was not incorporated into
the original costs, since it was discussed at the meetings. She thinks more information about what was
included in the project should have been provided from the beginning, including the railroad crossing
and utility costs. She’s also frustrated that the County approved it before the City knew about it.
Krebsbach apologized for the lapse in communication and expressed the County’s desire to maintain a
positive relationship with Lakeville. The County is also in a difficult position and they take the situation
very seriously. Spreadsheets and other budget information can be made available as often as Council
wishes to see it during the process. LaBeau asked how often the county meets with the city. Petree stated
that overall city/county staff discussions are now bi-monthly; however, meetings regarding individual
specific projects are held multiple times each week. Krebsbach stated that other project costs are “not to
exceed” estimates, or may have been over-estimated, which could result in a lower total cost. LaBeau
asked how it was possible to not be aware of the increased project costs sooner. Krebsbach stated that it
wasn’t until the actual costs came in and were compared to the budget that the details were realized.
LaBeau asked if some other standards for timely notifications could be implemented. Krebsbach stated
that information would be shared on a regular basis during meetings with staff.
Little asked why the railroad crossing improvement costs were not anticipated. Krebsbach stated that
the estimate was lower than the actual costs received from the railroad and the revised schedule for
completion also increased the costs. Davis stated that this added cost will create a challenge with the
City’s CIP. He is most upset that the situation went on so long before it was shared with the Council.
Anderson agreed with LaBeau and Davis and asked if the county would consider adjusting the cost
share, assuming more of the professional services or staff time costs, or consider spreading the City’s
payments over several years. The City needs to consider how to move forward financially. Krebsbach
expressed their regret and stated that the county is open to ideas and will continue to work with Lakeville
staff. Little stated that the City wishes to continue the long-standing positive working relationship with
the County but needs to determine how to fund the additional $1.1M.
School board member Bob Erickson asked about the progress of the 50/60 RAB, the Dodd Blvd. project
between 185th Street and 194th Street, and the Dodd Blvd. project south of 210th Street. Krebsbach stated
that Dodd Blvd. south of 210th St. is slightly ahead of schedule due to good progress in the spring. Some
wet weather impacted the utility crews and caused some delays at the 50/60 RAB; however, Krebsbach
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believes the project is on schedule to be completed by the contractor’s incentive date of August 28, prior
to the start of the school year. The weather will be the greatest factor in a timely completion.
Mr. Erickson asked if cost overruns for the 50/60 RAB will delay the Dodd Blvd. project scheduled for
2016. Krebsbach stated that the County would not delay Dodd Blvd. and will work with the City to
ensure it is included in the CIP. Erickson stated that the two largest right of way acquisitions for CR 50
and Dodd will need to be negotiated with the school district and encourages the county to begin a dialog
soon since school grounds and fields will be impacted.
Petree continued an overview of programmed CIP projects for 2016-2020 with clarifications and details
for Council as needed. Many projects were previously reviewed seen by council and needed no further
explanation. Staff would like to further discuss future street reconstruction projects with the Council.
Addition of other non-programmed projects can be considered individually with funding sources
identified as needed.
A temporary signal was installed on 165th Street and Ipava Avenue as part of the 50/60 RAB project.
Council is being asked if they wish to keep that as a temporary signal for a short time, install a
permanent signal, or remove the traffic control device. Cost of a permanent signal would be
approximately $750,000. An intersection control evaluation would be conducted. Petree stated that the
equipment was repurposed and some malfunctions are likely to be experienced. Anderson asked what
the annual cost would be to leave the temporary signal in place. Petree estimated annual maintenance
costs of about $5-6,000 with no major repairs.
LaBeau asked what the public feedback has been regarding the signal. Petree stated that the majority of
comments have been positive and people have expressed their appreciation, including the Police Dept.,
for the signal’s assistance with traffic control following services at Hosanna. Zach Johnson added that
some signal timing improvements have been made. LaBeau stated that drivers become accustomed to a
long-term temporary signal. Petree recommended Council consider that when the temporary signal has
outlived its useful life, it might be necessary and costly to replace it with new equipment.
Council directed staff to keep the temporary signal for the time being and provide Council with costs for
installation and maintenance of a permanent signal; this can be discussed following the opening of the
50/60 RAB and after the start of the school year.
Another non-programmed project is the realignment of 172nd Street to tie into Kenwood Trail and CR 5.
Dave Olson stated that adjacent property owners are challenged with developing their properties.
Wetland delineation has been completed and the area has been evaluated for possible tax increment
financing. Staff believes the area would be unlikely to qualify as a redevelopment TIF District; however,
tax abatement might allow for new development to help pay a portion of the intersection improvements.
Mr. Petree stated that preliminary engineering and design have begun for CR 50/202nd Street and
Hamburg Avenue intersection, especially the grades, sight lines, and turn lanes to improve vehicle and
pedestrian safety. Johnson stated that current traffic volume does not meet warrants for a four-lane
roadway but some short-term improvements for the intersection are being studied. Hamburg Ave. was
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originally scheduled for improvement in 2016 but based on development and extension of utilities it is
now recommended for 2018. LaBeau stated that with all of the additional homes that are being built in
the area the County might consider improvements to the Hamburg/Cedar Ave. intersection.
Other areas where staff is looking for Council direction on unprogrammed projects:
• A corridor study along CR70 similar to what was done on CR50; cost is estimated at about $100,000
but would be shared by multiple agencies;
• Setting aside funds for opportunity acquisitions in areas of imminent improvements;
• Dakota County highway expansion projects, to be paid by the County as part of new development;
the City is responsible for the cost of roadway adjacent to the park;
• Turn lane improvements for FedEx and NPL sites along CR 70; the County will be constructing
improvements on Heath Avenue later this year;
• The County and City are both proposing to remove from their CIPs the future realignment of Dodd
east of Hayes Ave. to Cedar Ave. based on current traffic counts. The county will continue to
monitor traffic counts in the area as new development takes place.
Council concurred with Mayor Little that the biggest two projects on the CIP, CSAH 9 (Dodd Blvd.) and
CSAH 50 (Kenwood Trail), should remain as programmed projects. Miller asked if there was anything
on the non-programmed list that Council would like moved to the programmed list. Council chose
several projects for further review: 165th Street and Ipava Ave. intersection improvements; Hamburg
Ave. and 202nd Street intersection improvements; 172nd Street realignment at Kenwood Trail; 215th
Street (CSAH 70) corridor study, right-of-way preservation and management; and left turn lane
improvements at two locations on CR70. Information will be provided at the August work session.
Petree stated that traffic control at the intersection of Dodd Blvd. and Flagstaff Ave. is being discussed
with the County; however, based on traffic warrants and volumes it was not placed on the priority list.
• Utilities – Proposed Projects
Petree provided a detailed overview of the utilities portion of the 2016-2020 CIP: rehabilitation of lift
stations; sanitary sewer I & I annual repairs for which matching grant funds may be available through
MCES; oversizing trunk sanitary sewer; water tower and reservoir maintenance, inspection of interior
and exterior coating systems, and cleaning, which is done on a five-year cycle; water main replacement
and trunk system improvements; water meter replacement, well collection pipes; construction of Well
#20; and extension of well collection pipe. Construction of Well #21 is programmed for 2016 but a
determination needs to be made of when Wells #22 and #23 will be needed. Petree stated that water
rates and fees need to accurately reflect the cost of these projects and improvements.
• Parks and Recreation CIP
Brett Altergott provided an overview of the Parks and Recreation CIP. Proposed projects include major
maintenance at several park buildings, possible repair of Oak Shores Park basketball/tennis courts, and
land acquisition for the North Creek Greenway (moved to 2016). A neighborhood meeting will be held
with residents of Donnelly Farm, Crescent Ridge, and Summerlyn subdivisions on August 12 to discuss
Summerlyn Park which is planned for construction in 2016. Council expressed their appreciation to
Lakeville Baseball Association for their contribution of $450,000 for lights at King Park which will
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double the available field usage time. A donation of $150,000 will be made this year and again in 2017
and 2019. Lighting for the Miracle Field will be in the first phase of the project.
Staff and Council discussed timing of Avonlea Park acquisition, both park dedication and future Phase
Two purchase. Council Member LaBeau believes the price should be agreed on for future purchase of
the remaining park land. The Parks, Recreation and Natural Resources Committee is in the process of
visiting parks to review current and possible future use. Renovation of Land of Amazement is scheduled
for 2016 and includes replacement of all the timbers; opportunities might exist to scale down the project
to cut costs. A fundraising plan will be introduced in August and possible grants will be explored. Little
asked if the design could be reviewed at a future work session and asked about including a splash pad;
Altergott believes the park is too busy for an additional major feature. Anderson needs to discuss LOA
costs, funding, etc. in detail before supporting the project.
A strip of land has been identified near Ritter Farm Park which has all the desired amenities for a Dog
Park. Several dog park facilities charge a user fee to offset operating costs; a computer-generated pass
system is being explored. The dog park boundary will need to be 300 feet away from the nearby eagle’s
nest. Council requested further information on revenues generated by user fees at other dog parks and a
recap of available park dedication funds. The Legacy Park natural area is also being programmed for the
2016 CIP; LaBeau commented on its close proximity to Summerlyn Park.
Other improvement projects include drainage at Steve Michaud Park, annual trail maintenance and
reclamation, and trail construction on the south side of 175th St. near Dakota Heights Park.
Item 3d was moved ahead on the agenda to accommodate Council Member Anderson who wished to
comment on this item before he needed to leave.
d. Role of Finance Committee Discussion
City Council established the Finance Committee by resolution in May 2011 and charged the committee
with duties and responsibilities including providing advice and recommendations to City Council and
staff in specific areas: financial planning including policy on setting fees for services (not including
spending or taxation levels); financial policies and practices such as fund balance, debt management and
investments; trends in finance and economy; legislative issues including levy limits and property tax
relief programs; review of comprehensive annual financial reports; and public communications and
education programs related to budget and city finance. The Finance Committee wishes to make
additional contributions, especially regarding public policy and on topics such as street reconstruction
costs, tax increment financing, cable TV fees, a fourth liquor store and costs related to parks.
Council Member Anderson is satisfied with the duties and responsibilities of the Finance Committee as
stated in the resolution and believes the committee is doing a great job; however, he suggested that
meetings could be held quarterly to coincide with review of financial reports. Anderson believes the
committee’s role is to offer input on policies involving debt service, significant costs, internal controls,
and risks, and to support the Finance Department, the Administration Department and the Council by
offering their ideas and perspectives. He believes these functions would give the committee a greater
sense of usefulness while the Council retains their responsibilities.
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Davis agreed that quarterly meetings of the Finance Committee are appropriate; however, he feels
policies should be established and upheld by Council. He agrees that debt service would be an area
where they could offer input but decisions regarding major issues are the Council’s responsibility. Little
would like the Finance Committee to review the City’s WAC and SAC fee structure and compare it with
other cities’ structures. Council needs to continue to be in charge of City policy issues but will assign
relevant tasks to the Finance Committee. LaBeau concurs that quarterly meetings would be more helpful
for staff. Council members will discuss further Finance Committee projects at a future work session.
Anderson provided a progress update on Tom’s Big Ride for Mental Health Awareness. The group has
traveled 1,275 miles and has raised $105,000. He appreciates all the support the group has received.
Council Member Anderson left the meeting, logging out at 8:55 p.m.
b. Cedar Avenue Red Line BRT Implementation Plan Update
Kristine Elwood, Dakota County, and Mona Elabbady, SRF Consulting, presented a Cedar Avenue
Transitway/Metro Red Line Implementation Plan Update (IPU) which they have been working on for
the past year. The original plan was adopted in August 2011 prior to the launch of the BRT. Future
stages of the corridor are currently being planned from the Mall of America to CR 70. Lakeville staff has
been involved in a technical and policy making advisory role. The goals of the Cedar Avenue Transitway
are: providing safe, reliable and cost effective transit service; improving mobility and accessibility;
enhancing and promoting compatible transit-oriented development; and increasing ridership. An
analysis of historical, current, and projected Red Line ridership was presented. Ridership is expected to
be 4,700 by 2040 if capacity is increased. Elwood highlighted ridership reports, evaluation and
performance measures, and projections if there was no further BRT development. Future stages of
improvements include potential expansion and addition of transit stations along the corridor. A one-
month public comment period begins July 28th and two public informational open houses are scheduled.
Little asked about funding sources and timing for the projects. Elwood stated that there are several
potential sources of funding including federal, state, regional and local taxing districts; operations are
funded by Metro Transit. Future stages could be moved ahead on the schedule if a need was determined
by denser housing and employment opportunities. Davis asked if transit station expansion occurs prior
to increased housing and development, or if housing density determines the need for transit. He
disagrees with building transit-oriented development along Cedar Avenue to support Red Line ridership,
but wants the market and the City’s Comprehensive Plan to dictate the type and density of development.
LaBeau added that the station on 181st Street is minimally used and it doesn’t make sense to spend more
tax dollars on additional transit stations or studies at this time.
c. Second Quarter Financial Report
Finance Director Erickson provided the second quarter financial report, with the addition of the
previous year’s data for comparison. Any necessary amendments will be made as they are authorized in
order to provide the most up-to-date budget information to Council. Personnel expenditures for 2014
and 2015 are difficult to compare due to transitions and reorganizations of several departments.
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Council members appreciated the report, especially the narrative and comparative aspects. Davis added
that in addition to reviewing the report the Finance Committee also could assist with helping the public
to understand the report and the finances of the City. Erickson stated that the most budget activity of
the year takes place in the third quarter.
e. Oak Shores Park Basketball/Tennis Court Repairs
The Oak Shores Park tennis and basketball courts are more than 25 years old and significant cracks have
developed in the playing surface. For safety reasons the courts have remained closed this year and there
are no comparable facilities nearby for public use. Staff has reviewed a new product and believes it
would be effective in filling the cracks and resurfacing the courts. Council is being asked to authorize
Park Improvement Funds of $36,000 for the repairs. LaBeau asked if there is a product warranty; there is
not. Little asked what the cost difference would be to totally replace the courts. Mr. Hennen stated that
a total replacement and reclamation is estimated at $68,000. Repairs with the new product should last
about seven to 10 years; however, complete new courts would be expected to last more than 20 years.
Council members believed that a total replacement would be a long-term solution and would be more
cost effective. Council directed staff to request proposals to replace the Oak Shores Park courts.
City Administrator Miller reminded Council that he will be out of the office next week.
4. Adjourn
The meeting adjourned at 9:30 p.m.
Respectfully submitted,
__________________________________
Judi Hawkins, Deputy City Clerk
__________________________________
Matt Little, Mayor