HomeMy WebLinkAbout05-23-16 WSCITY OF LAKEVILLE
CITY COUNCIL WORK SESSION MINUTES
May 23, 2016
Mayor Little called the meeting to order at 6:04 p.m. in the City Hall Marion Conference Room.
Members present: Mayor Little, Council Members Anderson, Davis, and LaBeau
Members absent: Council Member Swecker
Staff present: Justin Miller, City Administrator; Chris Petree, Public Works Director; Dave
Olson, Community & Economic Development Director; Jerilyn Erickson, Finance Director; John
Hennen, Parks & Recreation Director; Zach Johnson, City Engineer; Tamara Wallace, Deputy
City Clerk
2. Citizen Comments: None
3. Review of State of Minnesota Investment Fund Application for Hearthside Foods
Mr. Olson introduced Ken Kaplan, Plant Manager of Hearthside Foods - a food packaging plant
with two locations in Lakeville. Hearthside Foods has recently partnered with a set of customers
to bring all of their packaging needs in house, ultimately creating a significant number of
temporary and permanent positions while maintaining current employment. To accommodate
this considerable increase in business, various equipment purchases and layout changes are
required within the warehouse at a cost of approximately $10 - $15 million.
As a potential funding source towards this project, staff is proposing a Minnesota Investment
Fund Loan of $450,000 offered through the Minnesota Department of Employment & Economic
Development (DEED); the same program was used to fund the Post Brands corporate
headquarters project earlier this year.
Councilmembers thanked Hearthside Foods for their creativity in maintaining and encouraging
job growth within the City and supported moving forward with the loan application.
Water Trunk Fund Alternatives
At the direction of the City Council, staff presented a comparative analysis of watermain unit and
water billing charges for multifamily, commercial, and industrial developments using data
obtained from Blaine, Maple Grove, Otsego, Plymouth, and Woodbury on both a per unit and
per plat basis. The following considerations were used when completing the comparative charts:
Watermain unit charge, water billing charge, typical multi -family plat consisting of 37 units on 10
acres, and typical annual water consumption based on the City's 2015 water consumption data.
City Council Work Session Minutes, May 23, 2016
Page 2
In preparation for the review of the 2017 Comprehensive Plan, staff presented the current rates
and requested the Council provide direction on whether these rates should be further reviewed.
The consensus among the Councilmembers was to look into alternative watermain unit charge
options for the multi -family housing rates.
Quail Meadows Playground
In 1997, the Quail Meadows Park playground was constructed under a Joint Powers Agreement
(JPA) between Independent School District #192 (ISD #192) and the City. Staff approached ISD
#192 about assuming all costs associated with the park after replacement of this playground;
however ISD # 192 would only agree to these terms if the City took over mowing of the 11 acres of
park property currently being maintained by the district. Due to constraints in the mowing
routes and the expense to contract this work out, staff proposed to keep the JPA as it stands
splitting the cost of this replacement, as well as future replacement and maintenance needs
evenly; ISD #192 would continue to mow the park area.
Councilmembers discussed the history of the current JPA, and ultimately recommended the
existing JPA remain in place.
2016B Bond Issue
Ms. Erickson presented the 2016B bond issuance, which covers four projects to include the 2015
street reconstruction (Phase II), 2016 street reconstruction, Highview Avenue, and Lift Station #6.
The total bond issuance is currently estimated at $24,145,000 at a term of 20 years, and takes into
account special assessment prepayments for the 2015 and 2016 street reconstruction projects and
City equity contributions of $200,000 for the 2015 Phase II and $50,000 for the 2016 street
reconstruction projects. The overall increase in the debt service levy is approximately $748,000
which equates to a 2.9% increase in the tax levy for 2017.
Brenda Krueger from Springsted, Inc. examined the City's bond issues to determine any potential
opportunity for refunds. She provided a recommendation on the timeline and structure for
issuing the bonds. Staff also presented options for refunding the existing debt associated with
Hasse Arena. Options include keeping the term of the bonds the same while reducing annual
payments or keeping payments at the same level while reducing the term of the bonds. Council
discussed both options and directed staff to work with ISD 194 (as tenants of the arena) while
supporting keeping the term of the bonds the same to lower annual levy requirements.
Staff was directed to bring the 2016B bond issuance to the June 6 City Council meeting.
City Council Work Session Minutes, May 23, 2016
Page 3
Purchasing Policy
Ms. Erickson outlined the proposed Purchasing Policy modifications, which are intended to
streamline the process and make it more efficient while remaining in compliance with state
statutes, City ordinances, and best practices. Processes that were evaluated in the proposed plan
included purchase orders, bidding requirements, responsibilities of authorized users, payment of
claims, requests for other payments (such as mileage, dues, or subscriptions), cooperative
purchasing programs, and credit card authorizations.
Councilmembers clarified credit card limits and structure, approval process, and disciplinary
action for violations of the Purchasing Policy, and agreed with the direction of the proposed
policy.
Transportation Update
Mr. Petree provided a brief transportation update which included the following construction
projects: Dodd Blvd. from 185`'' - 194'', segment of Dodd up to Pilot Knob, Holyoke Avenue,
Highview water tower, County Road 50 reconstruction, 2015 & 2016 street reconstruction
projects, miscellaneous repairs, and an upcoming bid opening for County Road 5 & 172nd Street
realignment.
4. Adjourn
The meeting adjourned at 7:32 p.m.
Tamara 4'Nlace, Deputy City Clerk
v
Matt Little, Mayor