HomeMy WebLinkAbout04-26-2021CITY OF LAKEVILLE
CITY COUNCIL WORK SESSION MINUTES
April 26, 2021
1. Council Member Hellier called the meeting to order at 6:30 p.m. in the Council Chambers.
Members present: Mayor Anderson (via Zoom), Council Members Hellier, Bermel, Lee, and
Volk
Members absent: None.
Staff present: Justin Miller, City Administrator; Allyn Kuennen, Assistant City Administrator;
Jerilyn Erickson, Finance Director; Daryl Morey, Planning Director; Dave Olson, Community &
Economic Development Director; Tamara Wallace, Deputy Clerk
2. Moment of Silence and Flag Pledge.
3. Citizen Comments
None.
4. Envision Lakeville Community Conversations on Race Update
Mr. Miller provided an update on the City's "Community Conversations on Race" initiative
which held three community discussions via Zoom with over 200 participants. Each session was
led by a moderator with speakers contributing to a wide range of subjects throughout the series.
During the final session the group was divided into smaller groups to consider action steps;
among those topics reviewed were public/ school safety, education, mental/ physical wellness,
arts/ recreation, faith communities, and governance. The group compiled the feedback of those
conversations into a report for Council review and discussion.
Christine Thompson, 21840 Laigle Avenue
Ms. Thompson, along with three other Lakeville residents who attended the meeting, expressed
support for continued long-term engagement and commitment from the City of Lakeville as it
pertains to equity and inclusion. The group is proposing to continue these conversations through
the establishment of a new, permanent advisory commission that would be a part of the City.
Jeni Hartung, 16101 Harvard Drive
Outlined how the working group established their objectives, what targets were met within these
discussions, as well as short and long-term goals for the future of the group. Ms. Hartung also
expressed support for the establishment of a permanent equity/ inclusion advisory commission.
City Council Work Session Minutes, April 26, 2021 Page 2
Michelle Meyer, 9578 - 1716` Street West
Ms. Meyer shared a few stories from Lakeville students and residents about harassment, racism,
and other equity issues they have experienced while living in Lakeville. She reiterated that the
establishment of a commission focused on these topics is necessary at this time to create a safe
space for voices to be heard, and that its intent is to partner and help the City.
Carly Anderson, 18240 Jamaica Path
Shared statistics to outline the rapidly changing demographics and population size in Lakeville
throughout the years, discussed other human rights commissions throughout the state and
country, and talked about safety concerns some residents have in coming forward to Council/
School Board meetings to address discrimination they are facing.
Maya Imoto, 20275 Indio Path
Participated in the series and spoke about her experiences growing up in Lakeville as a Korean
American. She outlined potential reasons the majority of residents did not attend the meetings
including not being impacted by racism or fear about coming forward. She also encouraged the
Council to proactively address police brutality and use of force by law enforcement officers.
The Council discussed the addition of an equity and inclusion commission with varying opinions
about establishing the group, what its purpose/ goals would be, whether it should be a standalone
committee or an entity of the City, and future community events/ conversations. Ultimately the
Council directed staff to bring this item back to the May work session meeting for further
discussion.
5. ERP Software
The City's current utility billing software system offered by LOGIS is several versions behind, and
it has been determined that the most cost-effective approach is to replace the software system
entirely versus upgrading. Members of LOGIS have also indicated an interest in re-evaluating the
financial and human resources/ payroll systems as well; however, due to constraints caused by
COVID, production/ implementation of these new systems has been delayed.
It is anticipated a new utility billing software system would not be completed for another 2-3
years, so staff has also considered the option of the City finding a new software system on its own
through a consultant that would be responsible for conducting a needs assessment, development
of a RFP, proposal evaluations/ software demonstrations, contract negotiations, and ultimately
facilitate the implementation process. Consultant services are estimated to be between $350K -
$450K over a 2 -3 -year period, depending on the scope of services.
City Council Work Session Minutes, April 26, 2021 Page 3
The Council clarified potential long-term cost savings working with a consultant, process savings
going with a new application, software options/ software vendors, how the City currently
contracts with LOGIS, timeline should the City work with a consultant, and the estimated cost to
have a consultant conduct a needs assessment for the City. The Council was comfortable moving
forward with hiring a consultant to complete the first phase, an RFI (Request for Information) to
gain an overall understanding of the various department software needs.
Break from 8:23 p.m. - 8:31 p.m.
6. Recommendations for Use of Fund Balance Reserves and ARP Funds
As the Finance Department prepares for the annual budget process in the coming weeks, staff is
bringing forward recommendations for the use of the fund balance reserves as well as Federal
funding the City will soon receive. The General Fund balance reserves are estimated to be
approximately 66% at the end of 2021 assuming revenues/ expenditures budgeted.
Ms. Erickson outlined possible uses for the General Fund reserves including: inspection services
resources for building inspections, financial software upgrade/ project management resources,
fire trucks in CIP (currently being financed with bonding/ equipment certificates), fire safety
equipment in CIP, police training facility, the establishment of a compensated leave fund, new
community park amenities, economic development fund, and additional business assistance.
The City should also receive an estimated $7.67 million dollars from the American Rescue Plan
(ARP) Act of 2021. Further guidance for how these funds can be used is expected to come out in
late April from the Department of Treasury; these funds must be spent by December 31, 2024.
Possible uses for these government dollars could include: COVID-related expenses, remote work
expenditures, lost revenue from the Arts Center/ Heritage Center/ Arenas/ Recreation, etc., or
infrastructure such as the fixed base meter reading system. Barry Fick, Chair of the Finance
Committee, indicated that members view the ARP funds as a unique opportunity that should be
allocated for prudent short-term use and as a long-term resource to the City. Staff is seeking
Council feedback on the use of General Fund/ ARP funding.
The Council asked about the possibility of a fund set aside for a downturn in the economy/
pandemic/ natural disaster, present needs in the business community, arenas capital
improvements, re-evaluating the fund balance policy so the reserve rate is between 50 - 60%, and
priorities on the list of possible uses for the funding such as broadband services, loss of revenue,
water meter technology, the police training facility, and compensated leave fund. Staff will
compile the Council feedback and incorporate it into the budget process in the coming months.
City Council Work Session Minutes, April 26, 2021 Page 4
7. Utility Study
As part of the 2021 fee schedule update, the Council expressed the desire to have more discussion
around the current utility rate structure as well as the frequency of billing customers; and issued a
moratorium on the Senior Discount program enrollment. Ms. Erickson outlined several areas/
objectives to consider in evaluating the rate structure which included: understanding the fixed/
variable costs of municipal utility services, revenue generation for municipal utility services, user
fees for municipal utility services, conservation/ environmental goals, and pros/ cons of changing
bill frequency for utility customers from something beyond a quarterly payment system. The last
Utility Rate Study was completed by Northland Services in 2018.
The Council reviewed the objectives of the study and discussed fixed/ variable costs, revenue
generated from the tiers, what is considered essential water usage for a household, environmental
impacts to watering lawns, frequency of billing - switching to a monthly billing system or having
the ability for homeowners to watch their usage, business consumption of water, and rain
sensors. The Council also discussed staff s recommendation to eliminate the Senior Discount
Program, but instead to set the base tier so that all residents qualify at the essential usage rate.
The remaining tiers would then be set to accommodate the revenue generating needs of the
system. Staff will incorporate Council feedback and bring a revised draft utility rate structure
forward to a future meeting for consideration.
8. 2021 Zoning Ordinance Update
Staff and Mr. Dan Licht from the Planning Company, LLC provided the Council with an
overview of the proposed updates to the Zoning Ordinance following meetings held with the
Planning Commission on January 21 and March 4, 2021. The larger proposed updates included
those to the freeway corridor/ dynamic display signs, goats to remove invasive plant materials,
LED banding on motor fuel facilities, RST -2 single family lots, RM -3 district exterior materials,
and parking requirements within the downtown development guide. Other changes reviewed
included auto salvage yards, building height, accessory building driveways, accessory building
area, the construction of a maintenance building at Airlake Airport, development density/ lot
area per unit, Twinhome lot area, detached townhouse HOA's, M-1 district townhomes, and
amendments to the Zoning Map. Additionally, Community & Economic Development Director
Dave Olson is requesting an amendment to the sign ordinance requirement for larger buildings
in the OP and I District.
The Council reviewed each section of the zoning ordinance updates and extensively discussed a
request from the former owner of Hi -Hi Market, a convenience store/ motor fuel facility located
at 8333 - 210' Street, who is proposing an exterior remodel with the use of LED bands on the
building and canopy. The current Zoning Ordinance does not permit LED bands and staff does
not support the proposed change; however other cities do not prohibit this use. Staff will map
City Council Work Session Minutes, April 26, 2021 Page 5
out existing motor fuel facilities in the city to see if implementing a setback requirement to
residential neighborhoods would be a compromise to this change. Council agreed to delay
implementation of certain sections of the draft ordinance until the legislature adjourns, since
there are several areas of zoning codes that may be impacted by proposed legislation. Staff will
implement the Council's feedback into the Zoning Ordinance document to bring back to the
Planning Commission's May 20, 2021 meeting for public hearing and input.
9. Items for Future Discussion
None.
10. Committee/ City Administrator Updates
Council Member Hellier reported that the Dakota Broadband Board (DBB) met, and they delayed
the development of an RFP (Request for Proposal) to redesign the system plan.
Council Member Volk indicated the Arenas Board approved the new pay structure for staff. She
also met with the Minnesota Animal Humane Society representatives who attended the March
City Council work session meeting to request the ban of the commercial sale of pets within the
city. The group is currently looking into a legal definition of puppy mills to help clarify their
request - they would send these findings to the City initially and ultimately bring this request
forward again to a future meeting for further consideration.
11. The meeting adjourned to a Special City Council Meeting at 10:06 p.m.
Wallace, Deputy City Clerk
Douglas . Anderson, Mayor