HomeMy WebLinkAbout07-27-20CITY OF LAKEVILLE
CITY COUNCIL WORK SESSION MINUTES
July 27, 2020
1. Mayor Anderson called the meeting to order at 6:32 p.m.
Members present: Mayor Anderson, Council Members Hellier, Lee, Volk, Wheeler
Members absent: None
Staff present: Justin Miller, City Administrator; Allyn Kuennen, Assistant City Administrator;
Mike Meyer, Fire Chief; Todd Sellner, Assistant Fire Chief; Brenda Visnovec, Liquor Operations
Director; John Hennen, Parks & Recreation Director; Jerilyn Erickson, Finance Director; Tamara
Wallace, Deputy Clerk
2. Citizen Comments
No citizen comments.
3. Follow -Up on Race Discussion
At the June work session meeting, the Council began dialogue on how best to have a conversation
on race within the community following emails, calls, and requests from residents after the killing
of George Floyd. Mayor Anderson and Council Member Lee worked with staff to determine how
best to move those conversations forward while incorporating the "Envision Lakeville" values and
objectives into those discussions: safety throughout the community, a home for all ages/ stages of
life, and a sense of community and belonging. Following several conversations with a potential
facilitator, they worked to develop a foundation and strategy for how these discussions could take
place, including the establishment of a Mayor workgroup to encourage inclusive/ welcoming
cities, several resident conversations throughout the community, a citizen's academy, and a
possible community read hosted through "OneBook OneLakeville."
Nancy Papatola-Smith, 19127 Orchard Trail
Thanked the Council for bringing this discussion forward, clarified the process for determining
the facilitator/ coach, as well as the need to expand diversification to the Council and to make
certain the City does its part so all residents are comfortable in these conversations.
The Council discussed the importance of ensuring the group was diverse of opinions and
experiences, that all sides were represented inside of the discussions, and that the dialogue would
also encompass other cultures and potential bias.
City Council Work Session Minutes, July 27, 2020 Page 2
4. Transportation Update
Mr. Oehme provided a transportation update on the following construction projects: County
Road 60, Hamburg Avenue, Cedar Avenue, mill and overlay work on County Road 46, the 2020
Street Reconstruction Project, 1701 Street, 179' Street, the roundabout at Flagstaff Avenue, the
Lakeville North / Ames Arena parking lot progress, and various miscellaneous roadway projects.
5. Fire Department Duty Crew
Fire Chief Meyer and Assistant Fire Chief Sellner provided background on the item which seeks
to continue the expanded duty crew staffing hours previously adopted on April 9 as a result of the
pandemic. Duty crew hours are currently extended until 10 p.m. Monday - Friday and include
weekend hours from 6 a.m. - 10 p.m. through the end of July. Staff is proposing the new hours
continue through the end of 2020 indicating they provide a better response time/ service to the
community, assist with efficient training, decrease department/ engine average response times,
and 82% of emergency calls are currently covered by the duty crew. The impact to the 2020
budget would be approximately $37,157 (plus FICA and Medicaid) when considering fire calls,
training, and the duty crew.
The Council discussed funding for the expanded hours, how long to keep the extended duty crew
hours in place, recruitment/ retention of new firefighters, and the use of CARES Act dollars to
fund the staffing model. The Council approved moving forward with the current duty crew
format through 2020, and asked staff to establish the upcoming budget assuming the extended
staffing hours would continue into 2021. The Council will re -assess the duty crew hours during
the first part of 2021.
6. Liquor Store #4 Update
At the April work session meeting, the Council directed staff to work with Tushie-Montgomery
Architects (TMA) on design plans, following a market study conducted by Shenehon Companies
that determined Lakeville was ready for a fourth liquor store. The study considered various
components of the community including: sales price per square foot, residential/ commercial
growth, bidding/ construction/ material costs, location, and benefits to the community as
Lakeville has transferred over a million dollars back into the City maintaining one of the lowest
tax capacity rates in the County.
After reviewing the design plans, the Council decided to move forward with a single -level store
which included an attached event/ educational space. Staff worked with TMA to determine
interior and exterior details of the store, and had the scope reviewed by Greystone Construction
to prepare preliminarily cost estimates which are between $5.2 and $5.3 million. The City put
together a pro forma which determined the store would be funded through debt issuance, with
the first principal payment due in 2023, and under a 20 -year term. The pro forma also
City Council Work Session Minutes, July 27, 2020 Page 3
considered payment in lieu of taxes (PILT), net operating income (NOI), and net income after
transfers (NIAT); the calculations do not include the potential sale of the 1.9 acre property
adjacent to the Keokuk store.
The Council discussed the possibility of utilizing the event area as a rental space for additional
revenue to offset the costs of the project, timeline, the ability to do the project in two phases,
current demands on the stores due to traffic/ sales, cost to put together the construction
renderings, and expressed concern with the financial uncertainties the City could be facing in the
future. The Council would like clarification on what the construction costs would be without the
event space, potential revenue should the additional space be used as a rental space, and tax
abatement properties; and felt it would be helpful for staff to bring these answers to the August
work session meeting where the final CIP items/ preliminary tax levy would be discussed.
7. Park Referendum Update
The City Council and Parks, Recreation, and Natural Resources Committee (PRNRC) have
previously discussed the potential to go out for park bond referendum to fund construction
projects including the reconstruction of Antlers Park, the construction of Avonlea Community
Park, East Community Park, improvements to Ritter Farm Park, and a performance stage/
parking lot improvements at Casperson Park. The estimated total cost of the projects would be
$27,958,400.
The Council directed staff to work with Baker Tilly to conduct a survey to determine the tax
tolerance of the residents in the City. The survey sampled 400 registered voters within the City
and estimated that a referendum with a tax impact below $80/ year would receive the most
favorable vote from residents. Preliminary discussions were to include the Park Bond
Referendum on the August 11 State Primary Election; but in light of uncertainties as a result of
Covid-19, the Council decided to delay decisions and revisit whether to hold the referendum in
November at a future work session meeting. At their July 23 meeting, the PRNRC discussed the
Park Bond Referendum and in a four to one vote, recommended postponing the referendum and
revisiting the potential timeline in the fall where additional information about Covid-19 impacts
would be known.
The Council extensively reviewed all the challenges with adding the Park Bond Referendum to
the November ballot, and expressed varying opinions about whether the many unknown factors
of Covid-19 should be a determinant in the decision to move forward. Ultimately, the majority of
the Council felt it was best to proceed with the PRNRC recommendation to postpone the Park
Bond Referendum for a future year, acknowledging the amount of work that has gone into the
preparations, and the need to give the referendum the best chance. The Council reiterated the
City Council Work Session Minutes, July 27, 2020 Page 4
unfortunate and very unprecedented times and acknowledged the disappointment to not be able
to move the referendum forward as originally intended.
Break from 8:44 - 8:50 p.m.
8. Transportation, Parks, Utilities, and Environmental Resources CIP
Ms. Erickson gave an overview of the transportation, utility, parks and recreation, and
environmental resources components of the Capital Improvement Plan (CIP). Each report
included project descriptions, locations, revenues/ expenditures, but did not yet include the
financial impact on the levy or debt balances. Facilities, equipment, and technology were not
shown in the reporting. The overall proposed cost of the projects is approximately $142,000,000.
The Council reviewed the projects staff highlighted and felt should be included in the upcoming
CIP. The bulk of the capital improvement investments are in transportation over the next five
years, to include pavement maintenance and management, mill and overlay reconstruction, and
annual street reconstruction projects. Staff also reviewed costs for Avonlea, Antlers Community,
and East Community Park projects which are anticipated to be included on a future bond
referendum; as well as utility costs including improvements to the Michaud Park and CMF water
towers and the conversion to a fixed -base water meter system.
The remaining facilities and equipment sections of the CIP will be presented at the August 24
work session meeting; the Council will also take a closer look at prioritization of these projects
within the budget.
9. Lakeville Arenas/ Apex JPA
The City Council previously approved a contract with Apex Facility Solutions (APEX) for
improvements to the Lakeville Arenas. The contract included design ($239,680) and
construction ($7,693,605) for a total cost of $7,933,285; and requires the City provide a "notice to
proceed" before moving forward with any construction.
Based on an estimate provided by Northland Securities, the average debt service payment will be
approximately $540,000. Staff is recommending the City and ISD #194 enter into a Joint Powers
Agreement (JPA) that would see both the debt/ debt -related costs be split evenly between both
entities. The ISD board indicated they plan to approve the JPA at their August 11 Board meeting;
subsequently the JPA would be brought to the City Council's August 17 meeting for approval.
The Council directed staff to move forward with the JPA with ISD #194, and gave approval for
APEX to proceed forward with construction pending school district approval of the JPA
City Council Work Session Minutes, July 27, 2020 Page 5
10. Second Quarter Financial Update
Ms. Erickson provided an overview of the second 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.
11. Anti -Litter Campaign
Council Member Volk expressed a concern in what she feels is an increase in litter within the City
and wanted to have a discussion on some proactive measures staff and the community can take to
encourage residents/ visitors not to throw trash on the ground.
The Council talked about focusing these education and awareness efforts towards youth by
perhaps partnering with the local/ neighboring school districts, social media outreach, as well as
working closely with the Lakeville Friends of the Environment and City communications' staff to
push this message forward.
12. Items for Future Discussion
• Closer review of the CARES Act dollars, guidelines, and City's funding allocation
• Sale of the former Farm Show property
• Tour of the City's water system for Council education
13. Committee/ City Administrator Updates
Council Member Volk attended the Fire Relief Board meeting where members decided to
postpone the annual Waffle Breakfast fundraiser this year to not impede on the re -opening of
local restaurants/ businesses. Ms. Volk also provided an update on the DCC subcommittee
which is currently considering the County picking up most of the fixed costs with the cities
contributing to shared costs.
Council Member Hellier indicated the Liquor and Personnel Committees have been discussing
the Assistant Manager position for Lakeville Liquors.
Mayor Anderson felt that it would be helpful to have a Lakeville Public Safety Committee
meeting to discuss some of the police -related items that have come up in the news including the
enforcement of masks, and how, and to what extent that would be policed. Mayor Anderson
recently had a conversation with Angie Craig's office, and has sat in on several of the Governor's
conference calls regarding Covid-19 related items including the requirement of wearing masks
while indoors.
City Council Work Session Minutes, July 27, 2020 Page 6
14. The meeting adjourned at 10:14 p.m.
,--A 110 V U
Tamara W 10, ce, Deputy City Clerk Douglas P. Anderson, Mayor