HomeMy WebLinkAbout04-27-20CITY OF LAKEVILLE
CITY COUNCIL WORK SESSION MINUTES
April 27, 2020
1. Mayor Anderson called the meeting to order at 6:31 p.m. via teleconference.
Members present: Mayor Anderson, Council Members Hellier, Lee, Volk, and
Wheeler
Members absent: None
Staff present: Justin Miller, City Administrator; Daryl Morey, Planning Director; John Hennen,
Parks & Recreation Director; Jerilyn Erickson, Finance Director; Allyn Kuennen, Assistant City
Administrator; Brenda Visnovec, Liquor Operations Director; Char Friedges, City Clerk; Tamara
Wallace, Deputy Clerk
2. Citizen Comments
There were no citizen comments regarding non -agenda items.
3. Zoning Ordinance Update
Following approval and adoption of the 2040 Comprehensive Plan, staff has begun work on
updating the Zoning Ordinance to implement the changes. Mr. Dan Licht from the Planning
Company, LLC provided the Council with an overview of those changes, specifically focusing on
three proposed zoning districts to implement in the Corridor Mixed Use (CMU) land use portion
of the document. Those include the M-1 District which allows for development of commercial
uses with opportunity for multiple family dwellings along the I-35 Corridor District, the M-2
District which allows for development of commercial and high density residential dwellings along
the Cedar Avenue corridor to support transit services, and the RM -3 District intended for
medium density residential dwellings such as detached townhomes, twin -homes, and attached
townhomes along the Cedar Avenue and I-35 corridors. Mr. Licht provided an overview of each
district's specifications including conditional use permits, building heights, as well as density,
setback, streetscape and parking requirements.
The Council reviewed the updates and discussed the provision regarding the number of allowable
stories, instances in which a conditional use permit could be granted, primary differences
between the M-1 & M-2 districts, parking requirements, how efficiency apartment densities were
determined, the elimination of single family homes from certain districts, fence approval process,
restaurant drive-thru options in downtown Lakeville, temporary refuse container requirements,
condo associations, auto/ mechanic shops in downtown, electric vehicle parking spots, and
parking restrictions for large vehicles/ work vans.
City Council Work Session Minutes, April 27, 2020 Page 2
The Council provided feedback on proposed changes to the draft ordinance which staff will
implement into the document to bring back to the Planning Commission's May 21 meeting for
public hearing.
4. July 4a' - 2020 Fireworks Display
In light of Covid-19 related concerns, the annual Pan-O-Prog (POP) event will not be held this
summer; however, staff is seeking Council input on moving forward with the 41' of July fireworks
display. This would incorporate revisions to the usual format including the elimination of
entertainment/ food trucks, moving the event to King Park which has a higher elevation centrally
located in the City, and encouraging residents to not congregate in groups to watch the show.
The cost of the display is $30,000 with funds typically coming from donations, the POP Board,
and Lakeville Liquors. As many donations have been re -directed to deal with the impacts of
Covid-19, to date $23,700 has been pledged towards the fireworks display event.
The Council asked additional questions about the King Park location, how best to maintain/
educate residents about social distancing requirements, additional health/ safety measures that
can be implemented, and the possibility of broadcasting the fireworks over a radio station/
Facebook Live for example. The Council would like to move forward with the fireworks display
and directed staff to find the additional dollars needed in the budget. Staff will work to promote
social distancing measures such as residents watching the fireworks from alternative locations
like their cars, decks, or online.
5. Parks Referendum Update
At the January City Council retreat, staff was directed to work with Baker Tilly to determine
Lakeville resident tax tolerance should the City decide to move forward with a Park Bond
Referendum on August 11. The Park Bond Referendum project has a cost estimate of
approximately $33 million dollars and would include development at Antlers, Avonlea, and East
Community Park; improvements to Ames Arena and Ritter Farm Park Cabin/ site; as well as a
performance stage at Casperson Park and parking lot improvements. The survey was performed
in mid-February and chose 400 registered voters at random; voters were asked about their
willingness to pay an increase of $50, $75, or $100 per year.
As this survey was completed before the Covid-19 pandemic, staff is seeking Council input on
whether to proceed forward with the Park Bond Referendum at this time. The Parks, Recreation,
and Natural Resources Committee (PRNRC) discussed the item at their April 15 meeting, and
advised to postpone the Park Bond Referendum, and revisit discussions in late August/ early
September.
City Council Work Session Minutes, April 27, 2020 Page 3
The Council reviewed the deadline should they choose to push the Park Referendum back to
November 3 and clarified the arenas project and timeline for needed repairs. The Council agreed
with the PRNRC direction to postpone discussions on the referendum, and to reconvene at the
July/ August work session meetings to see if it makes sense to hold the referendum in November
or push it back to 2021. In the interim, the Council directed staff to move forward with the
acquisition of a property located at Antlers Park using Park Dedication funds, to ensure this piece
was completed for future construction.
Break from 7.34 - 7:41 p.m.
6. Bond Issuance Recommendations
Staff is proposing two debt issuances to cover the costs of several upcoming projects within the
City, Tammy Omdahl, Managing Director with Northland Securities reviewed both. The first,
2020A, is estimated to be 15,645,000, would carry a bond term of 10 years, terms consistent with
the current Special Assessment Policy, and include several projects: 2020 Street Reconstruction
Project, 1701 street, 1791 Street (Cedar - Flagstaff), engineering fees for 2101 Street (Holyoke -
Cedar), Ames Arena parking lot, and various water projects. The second, 2020B, would include
the design and construction phases of the Lakeville Arenas energy savings improvement project
presented in the Apex contract approved by Council on April 6. This bond issuance would only
be necessary if not funded by the park referendum and would be split with ISD 194 in this case.
The Council discussed staff s recommendation of lengthening the special assessments to a 15 -year
term, timing for the school district's levy should they choose to move forward, and whether the
bond issuance would cover the entire Ames Arena upgrade needs. Given the decision to delay
Park Bond Referendum discussions until July/ August, the Council would like to revisit these
discussions at that time.
7. Year-end 2019 and 11 Quarter 2020 Financial Update
Ms. Erickson presented the preliminary 2019 year-end financial report which shows the variances
between the amended budget as well as the budget estimate.
Ms. Erickson also provided an overview of the 2020 first quarter financial report which included
revenue and expenditure highlights on the General, Communications, Liquor, and Utility
Operating Fund's as compared to the 2019 year. The overview outlined the financial impact
related to Covid-19 when available, as the potential for community spread required the closures
of several City facilities including City Hall, the Arts & Heritage Centers, Hasse & Ames Arenas,
Central Maintenance & Water Treatment Facilities, all four fire stations, and the Police
Department lobby.
City Council Work Session Minutes, April 27, 2020 Page 4
8. Liquor Store #4 Design Concepts
After the completion of a liquor operations market study, it was determined that Lakeville is
ready for a fourth liquor store at the Keokuk Avenue location as a flagship location. Staff
prepared a Request for Proposal (RFP) to acquire proposals for the construction and
development of that property, however subsequently both proposals were rejected at the
December 2019 work session meeting with the decision to have the City construct the project as a
city -owned operation.
Staff has worked with Tushie-Montgomery Architects (TMA) to draft a proposed site plan, store
layout, as well as three potential design options for the store. The stores would be funded by the
sale of Kenrick Avenue, liquor store sales, and bond issuance.
• Option 1: one story building with 16,700 square feet, larger selection of wines, liquor, and
beer, and would include offices for liquor operations administrative staff. Cost is
approximately $4,620,000 - $4,728,000.
• Option 2: two story building with 22,308 square feet, first floor comprised solely of retail
space, and second floor that includes administrative offices, rooftop patio, as well as event
space for hosting wine, craft beer, and bourbon tasting events. Cost is approximately
$6,011,600 - $6,119,600.
• Option 3: one story design with event space with 16,797 square feet as in option 1, an
additional 4,613 square feet of event space attached to the south side of the building to
host on-site wine, craft beer/ bourbon tasting events, and staff training. Cost is
approximately $5,396,000 - $5,504,000.
The Council reviewed the pros/ cons of each design option and clarified if the addition of another
event space would affect other City buildings that offer rental facilities. The Council ultimately
agreed to move forward with design option 3 but expressed varying concerns on whether to move
forward with the construction of the project at this time siting unknowns regarding Covid-19
financial impacts to the City.
The Council will revisit discussions at the July work session meeting as staff advised that action
did not need to take place until September; in the meantime, staff will still begin work on bid
documentation and next steps to keep the project moving forward.
9. Liquor License Renewal Fee Reductions
Annually liquor licenses are renewed on July 1 of each year. As Covid-19 has required the closure
of all bars and most restaurants, staff is proposing a reduction of the liquor license renewal fees
and the ability for liquor license holders to pay this fee in two installments this year (May 30 and
November 30). The reduction and adjusted pay schedule are intended to ease some of the
City Council Work Session Minutes, April 27, 2020 Page 5
financial impact and strain of Covid-19 for license holders by reducing the fees 20% - reflective of
the number of months establishments have been required to close down (mid-March through
end of May presently). Staff is seeking Council input as renewal letters will go out in early May.
The Council clarified the net impact to the City should it decide to extend the 20% reduction to
license holders, which equates to a net loss for the City of approximately $39,000. The Council
was in favor of moving forward with the revised liquor license fees and pay structure.
10. Covid-19 Update
City Administrator Miller gave an update on Covid-19 impacts to the City; the Council discussed
the reopening of certain recreation facilities as well as in-person City Council meetings.
11. Items for Future Discussion
None.
12. Committee/ City Administrator Updates
Council Member Hellier reported that the Dakota Broadband Board met virtually and decided
not to adopt a prevailing wage policy in DBB projects.
Mayor Anderson indicated that the Minnesota Mayors Association and Regional Council of
Mayors have each continued to meet; both organizations have been a great tool of support,
advocacy, and positive communication.
13. The meeting adjourned at 10:03p.m.
Respectfully submitted,
Ta ra Wallace, Deputy City Clerk Douglas P. Anderson, Mayor