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HomeMy WebLinkAbout11-23-20CITY OF LAKEVILLE CITY COUNCIL WORK SESSION MINUTES November 23, 2020 1. Mayor Anderson called the meeting to order at 6:30 p.m. Meeting was held remotely via Amazon Chime. Members present: Mayor Anderson, Council Members Hellier, Lee, Volk, and Wheeler Members absent: None. Staff present: Justin Miller, City Administrator; Allyn Kuennen, Assistant City Administrator; Jerilyn Erickson, Finance Director; Fire Chief, Mike Meyer; Dave Olson, Community & Economic Development Director; City Engineer, Zach Johnson; Public Works Director, Paul Oehme; Tamara Wallace, Deputy Clerk 2. Citizen Comments None. 3. Fire Relief Pension Increase Request The Lakeville Fire Relief Association Board is asking for an $805 increase to their current pension benefits for 2021. Staff presented the historical background for the request including funding sources, funding ratio of the Special Pension Fund, and the projected impact to the pension fund estimating investment earnings for the 2021 - 2026 period. The estimates do not include a voluntary contribution from the City and would see the 2021 pension benefit level at $10,000, the current maximum allowed. Staff is seeking approval to move forward with the fire pension benefit level increase. The City Council reviewed the comparative analysis and clarified whether there are any known plans to raise the current limit of $10,000, terms for exceptions to this maximum in other cities, and how the projections outlined were determined. The Council was in favor of moving forward with the $10,000 pension benefit level for 2021; staff will bring this item forward to a future City Council meeting for formal approval. 4. COVID-19 Business/ Resident Support Efforts Following Governor Walz's recent announcement on statewide restrictions to dial back the surge in Covid-19 cases, staff has begun preliminarily conversations on how to assist local businesses with the financial impacts of the closures. Previously the City has offered other relief efforts including reduction in liquor license fees/ flexibility in payment terms, the small business/ non- profit grant program totaling $854,140 in grants, flexible outdoor seating/ patio/ sales areas, City Council Work Session Minutes, November 23, 2020 Page 2 increased communications via Thrive! Newsletters, and one -one -one assistance with guiding businesses through local/ state/ federal programs. Staff is seeking approval from the Council to amend the previously approved temporary outdoor customer service area policy, and to see if the Council is interested in extending any additional help to local businesses at this time. The Council reviewed the draft policy changes to the temporary outdoor customer service area policy, and extensively discussed: eliminating the second liquor license payment to provide some relief to local restaurants and bars, refund process for those who have already paid the liquor license in advance, how to provide relief to gyms, connecting with the Chamber to find out what the business needs are, marketing strategies to entice the community to continue purchasing services to impacted businesses, and finding creative ways for businesses to support their employees during the upcoming holidays. The Council agreed with the changes to the temporary policy for outdoor patios and supported eliminating the second liquor license payment to help local restaurants and bars. Staff will put together an ordinance amendment reducing the 2020 liquor license fees to half of what they presently reflect; and any bars/ restaurants that paid the year in advance will have the option to defer the payment to the 2021 liquor license period, otherwise will be issued a refund. The Council also asked staff to brainstorm creative virtual programs to offer residents that are free such as a virtual Santa, free ice skating, or subsidized snowshoe rental. The December 7 City Council meeting agenda will include a general COVID-19 response item to allow additional dialogue following the announcements that will come from the Governor and County in the next week. 5. Dakota County 2040 Transportation Plan Mr. Johnson provided a summary overview of the Draft Dakota County 2020 Transportation Plan (Plan) which is developed as part of the County's 2040 Comprehensive Plan and includes land use updates adopted by all the cities/ townships as part of their comprehensive plans. The Plan gives a long-term outlook of the County's transportation system, including principles, investment goals, strategies, polices, and performance measures. The Council clarified whether residents received feedback following the community survey that is sent as part of the Plan review period, and extended gratitude to the County for their partnership as well as support to the Transportation Plan changes and future improvements. 6. 2021 Tax Levy and Budget Ms. Erickson provided an overview of the 2020 yearend estimate which includes the $3.8 million from the CARES Act and reflects an increase of $7.4 million more than anticipated in the 2020 fund balance. Ms. Erickson also presented the revised 2021 proposed General Fund budget and City Council Work Session Minutes, November 23, 2020 Page 3 the property tax levy to support general services. The new plan reduces the property tax levy increase from 6.5% to 5.87% utilizing General Fund reserves to fund capital expenditures in the Equipment, Technology, and Park Improvement Funds, and uses 2020 permit revenues to cover some inspection services. Ms. Erickson outlined how the tax levy was ultimately reduced as well as the challenges staff would need to address in 2022 to include: new positions needed due to community growth, health insurance changes, debt issuance, and the significant tax levy increase needed in 2022 to maintain the building, technology, and park improvement funds. The Council thanked staff for their work in reducing the preliminary tax increase and finding additional spending cuts. The final step in the budget process will be a public hearing held at the Monday, December 7 City Council meeting to formally adopt the 2021 Budget & Tax Levy/ Fee Schedule. Break from 8:41 - 8:45 p.m. 7. Utility Rates/ Fee Schedule At the October 26 work session meeting, staff presented the Council with possible water rate scenarios for the 2021 utility rate adjustments; staff was directed to bring additional scenarios for discussion to the next work session meeting. Included in the packet materials were four scenarios - all of which included comparative analysis as well as the impacts on both unassigned cash and the customer's bill. The first and third scenarios provided sufficient cash in all but two years where funds did not meet the unassigned level. Scenarios two and four provided a much lower utility rate increase for 2021, but the cash balance would not meet the target in several years. Staff also presented three additional scenarios prior to the work session meeting. The Council reviewed the utility rate scenarios and discussed ultimately completing a utility rate study, the need to take a closer look at the CIP to avoid future large utility rate increases, water conservation education, and how to encourage residents to go paperless with their utility bills. The Council also discussed putting a moratorium on the senior discount, the possibility of adding a $1.00 fee to those residents who want to continue receiving a paper bill and/ or a discount to those who go paperless, and communication strategy to the public on any rate adjustments. Ultimately, the Council agreed to utility rate scenario six: 16% base rate, 14% tier 1, 20% tier 2, 24% tier 3 increases; and agreed to move forward with a moratorium on the current senior utility discount effective January 1, 2021. The council also agreed to not implement the $1 charge for paper bills at this time, but to review it again next year. City Council Work Session Minutes, November 23, 2020 Page 4 8. Fixed -Base Utility Reading System Mr. Oehme provided background on the City's current system for reading water meter usage. The system is an Automatic Meter Reading (AMR) which generates readings through a one-way communication from the meter to the utility operator that travels the city to obtain the data. However, the City has worked to progressively replace this equipment with Advanced Metering Infrastructure (AMI), a newer system that allows two-way communication to provide the meter reading, water consumption based on time of day, as well as a portal, WaterSmart, for residents to manage usage and bills. Other benefits include the ability to diagnose issues without sending out utility staff, quick meter readings, leak detection capability, and water conservation. To maximize on the new technology offerings, fixed based network collectors would need to be installed on water towers and other City infrastructure throughout the community based on a study. The preliminary estimate to roll this system out comes to approximately $1,892,500 which includes the replacement of the remaining meters, software upgrades/ fees, the Water Smart portal/ annual software contract, and collectors' fees. The implementation of this system would see staff savings eliminating final reads/ rereads, the need to close final accounts, flexible utility billing cycle, and the need for meter replacement programs for years. The Council reviewed and clarified benefits, timeline, and implementation of the AMI system and resident portal, ultimately getting to a monthly utility billing system, the program's demo, and initial investment costs/ annual software costs. The Council directed staff to continue looking into next steps for the system including dollar savings the investment would return. 9. Legislative Priorities Mr. Kuennen presented the draft 2021 Legislative Priorities, a document intended to communicate the City's legislative position on a variety of issues pertaining the transportation, local control, municipal revenue and taxation, economic development, and housing. The document also includes an appendix listing other initiates of concern/ priority for the City. Staff has reviewed the document and compiled two lists of priorities: "Primary Priorities" which include state mandates on local authority, infrastructure fees, I-35 capacity/ Metro Orange Line Extension, and expansion of wine and strong beer sales in grocery/ convenience stores. "Additional Legislative" Priorities which include local control/ municipal revenue/ taxation, transportation needs such as the County Road 50/ Interstate 35 Interchange capacity, economic development, defining the city's role in housing, municipal liquor operations, funding for shade tree management program, and franchising cable service providers. City Council Work Session Minutes, November 23, 2020 Page 5 The Council reviewed the draft document and discussed supporting true early voting (not the current absentee voting system), downgrading the I -35W expansion project given the assumption of future reduced traffic due to long-term ability to work from home, and possibly moving Metropolitan Council representation, rail car storage, legislative redistricting and the Interstate 35 Interchange capacity to a primary priority. The Council directed staff to invite state/ local legislators to the December 14 City Council work session meeting to obtain feedback and input on the draft legislative priorities document, and how the priorities align with the legislator's agenda for the upcoming session. The Council will then look to incorporate this feedback and formally adopt the document at the December 21 City Council meeting. 10. Items for Future Discussion None. 11. Committee/ City Administrator Updates Mr. Miller indicated staff is currently working with a fixed line broadband company, MetroNet, to come into the City as a third option for cable and internet services. The company would come in and lay lines throughout the City and would be required to sign a franchise agreement under the same terms as the agreements with Charter and Frontier Communications. Council Member Hellier indicated the Broadband Board will not meet until January; and reminded the Council of the deadline to complete Mr. Miller's annual performance evaluation. Council Member Lee provided an update on the first "Conversation on Race" which had 86 attendees. The workgroup subsequently met and are in the process of gathering feedback from the recent survey sent to participants before scheduling the second session. Council Member Volk stated the DCC is in the process of bringing a revised funding structure before the board and member cities. 12. The meeting adjourned at 10:02 p.m. Douglas P. Anderson, Mayor