HomeMy WebLinkAbout05-29-18 WSCITY OF LAKEVILLE
CITY COUNCIL WORK SESSION MINUTES
May 29, 2018
1. Mayor Anderson called the meeting to order at 6:00 p.m. in the Lake Marion Conference Room.
Members present: Mayor Anderson, Council Members Davis, Hellier, LaBeau and Wheeler
Members absent: None
Staff present: Justin Miller, City Administrator; Allyn Kuennen, Assistant City Administrator;
David Olson, Community & Economic Development Director; John Hennen, Parks & Recreation
Director; Jerilyn Erickson, Finance Director; Chris Petree, Public Works Director; Charlene
Friedges, City Clerk
2. Citizen Comments: There were no citizen comments.
3. Springsted Debt Issuance
David MacGillivray of Springsted presented the proposed 2018 bond issuance, estimated at
$8,580,000 for the 2018 street reconstruction project and the Kenrick Avenue improvements.
The bond structure is compliant with the City's debt policy. He explained that a $1,778,490
increase in debt service levy represents a 6.35% increase based on the total 2018 property tax levy.
Springsted is proposing a refunding of the 2009 Taxable General Obligation Street
Reconstruction Bonds. The refunding is being pursued to eliminate risk that the federal
government will further reduce or eliminate the federal tax credit on which the City relies to
make a substantial portion of the debt service payments on the Series 2009A Bonds. Further,
based on the mid-May interest rate market, this refunding is projected to result in total net future
value savings of approximately $114,534, with a net present value of $99,583.
The City Council concurred with Springsted's recommendation on the 2018 bond issuance and
refunding of the Series 2009A Bonds.
4. Antlers Park Master Plan Implementation Process
Mr. Hennen and Ms. Erickson presented several options that are available for financing
recreational facilities; they include general obligation recreational facilities bonds (which require
voter approval), gross revenue bonds, general obligation tax abatement bonds, lease revenue
bonds and bonds issued pursuant to special legislation. Additional funding sources contemplated
include grants, donations, park dedication fees for new structures and trails, and Dakota County
participation for the trailhead.
City Council Work Session Minutes, May 29, 2018
Page 2
Hennen explained that a two-phase construction approach for the Antlers Park Master Plan
would result in an estimated $5.7 million for the first phase and $1.7 million for phase two. The
impact on the City's tax levy would be approximately $713,000 or 2.5% annually.
Council members discussed project phasing and funding options, including the potential use of
liquor funds and/or park dedication funds. Council also considered the possibility of combining
this project with the sports dome and East Community/Avonlea Community Park projects in a
general obligation recreational facilities bond referendum.
Council directed staff to develop a conceivable bond referendum timeline and tax impact analysis
for consideration at the June work session.
5. Final Downtown Development Guide Review
Bryan Harjes with HKGi outlined Chapters 3 and 4 of the Draft Downtown Development Guide.
Chapter 3 of the draft plan addresses approach to the Downtown Development Guide, land use
and development character initiatives, transportation and wayfinding, parks, trails and open
spaces and downtown reinvestment strategies. Chapter 4 addresses keys to implementation, roles
and responsibilities, priority actions, land use controls and tools for public investments.
Tammy Omdal of Northland Securities provided potential finance tools. They include tax
increment financing, special assessments, grant funding, loans and technical assistance.
Council members discussed different approaches to the financing philosophy and whether the
City should be proactive or reactive with respect to implementation of the development guide.
Mr. Miller stated implementation and financing is likely to occur on a case by case basis.
The final Downtown Development Guide will be formally presented to the City Council in late
June or early July. Additional public comment will be considered prior to adoption.
6. Freedom Rock
Jim Tabaka of VFW Post 210 asked the City Council to consider the placement of a Freedom Rock
at Aronson Park near the existing Veterans Memorial. Freedom Rocks, which commemorate the
stories of veterans, are unique and vary in size. The mural subject will be determined by the artist
and a Freedom Rock committee. Mr. Tabaka stated they hope to unveil the Freedom Rock as part
of the Post's 100 -year anniversary celebration during Pan-O-Prog 2019. VFW Post 210 will be
entirely responsible for funding through donations. The council thanked Mr. Tabaka for his
proposal and was supportive of the project.
Break 7:22 - 7:29
City Council Work Session Minutes, May 29, 2018 Page 3
9. Solar Garden Subscription
Mr. Miller presented two solar subscription proposals for the Council's consideration. He
explained that solar gardens would generate and allocate enough electricity to offset electric
power needs at Ames Arena (100%) and Hasse Arena (50%). The Nokomis proposal offers a
more steady and predictable savings rate, while the US Solar proposal provides a potentially
larger payoff but with more of the savings backloaded and not as predictable. The US Solar
proposal assumes a 2.5% annual increase in electricity prices. Miller explained that the City
entered into a smaller solar subscription in 2015 with Cypress Creek, which offsets a small
portion of the Ames Arena electric bill. To date the City has saved $5,475.
Council members discussed the pros and cons of the two proposals, the likelihood that electricity
prices will increase and not decrease, and a potential penalty for withdrawal from the current
subscription with Cypress Creek.
A representative of Nokomis Partners was present and provided a 25 -year outlook based on a
fixed savings rate. There was no one present from US Solar.
Council directed the City Administrator to further evaluate the risks and benefits of both
proposals and provide a recommendation for consideration at a future City Council meeting.
7. County Right -of -Way Mowing (follow-up)
Mr. Petree presented a proposed schedule for mowing of boulevards and center medians along
Dakota County roadways and within the right-of-way as directed by the City Council at its April
23rd work session. Dakota County will continue to mow the road right-of-way three to four times
per year; and the City will work with a contractor to mow all urbanized Dakota County roadways
on two additional occasions during the summer months. This additional mowing would take
place prior to Pan-O-Prog (at the end of June) and prior to the Labor Day holiday. The estimated
cost for this work, which is not in the 2018 budget, would not exceed $10,000.
Public Works staff will work with the Finance Department to secure a funding source and enter
into a contract with Dakota County.
8. Transportation Update
Mr. Petree provided a transportation update. Council discussed safety concerns at the Jacquard
Avenue pedestrian crossing near Lakeville South High School. Staff will discuss the matter with
school district officials and follow up prior to start of the 2018119 school year.
City Council Work Session Minutes, May 29, 2018
10. Refuse Collection Zones
Page 4
Council members discussed the possibility of moving toward some form of organized collection
of mixed municipal solid waste and recyclables. Organized collection helps to address pedestrian
safety, wear and tear on residential streets and daily noise and traffic. One option is to divide the
city into five zones of roughly equal physical addresses. Residents would still be allowed to
choose their hauler; however, haulers would be required to provide the service on a certain day of
the week based on geography.
The City Administrator will organize a meeting between appropriate staff and the residential
haulers to further discuss this proposal and determine the best process to move forward.
11. Committee/ City Administrator Updates
Council committee and City Administrator/Assistant Administrator updates were provided.
12. The meeting adjourned at 8:30 p.m.
Respectfully submitted,
Charlene Friedges, City
?'�r
Douglas . Anderson, Mayor