HomeMy WebLinkAbout05-24-2021CITY OF LAKEVILLE
CITY COUNCIL WORK SESSION MINUTES
May 24, 2021
1. Mayor Anderson called the meeting to order at 6:30 p.m. in the Council Chambers.
Members present: Mayor Anderson, 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; John Hennen, Parks & Recreation Director; Dave Olson,
Community & Economic Development Director; Ralph Vetter, Information Technology
Manager; Tamara Wallace, Deputy Clerk
2. Moment of Silence and Flag Pledge.
3. Citizen Comments
See item "Envision Lakeville Community Conversations on Race Update"
4. Envision Lakeville Community Conversations on Race Update
At the April work session meeting, the City Council was provided an update on the "Community
Conversations on Race" series which held three community conversations via Zoom. During the
final session the group was divided into smaller groups to consider action steps; the feedback of
those group discussions was compiled into a report for Council review. Among the action steps
considered was the possible addition of an equity and inclusion commission, and whether it
should be a standalone committee or an entity of the City. Ultimately the Council could not
reach consensus and directed staff to bring the item back to the May work session meeting.
Included in the May work session packet materials, Mayor Anderson and Council Member Lee
drafted a proposal for the "Envision Lakeville Diversity and Inclusivity Taskforce". Several
residents were in the audience and online to provide feedback on the proposed taskforce:
Howard Schneider (Previous Envision Lakeville Taskforce Member), Cindy Graham (20480
Holyoke Avenue), Steve Sizer (9445 2071' Street West), Bob Cajune (20872 Greenwood Avenue),
Michelle Myer (9578 171," Street West), Randy Pronchinske (9885 Upper 173`d Court), Jennifer
Hartung (16101 Harvard Drive), Lance Juffer (19032 Inndale Drive), Carly Anderson (18240
Jamaica Path), Terry Hoke (17515 Gage Court), Terry Branham (16409 Gunflint Trail), Holly
Anderson (16760 Klamath Trail), Christine Thompson (21840 Laigle Avneue), Bob Erickson
(19081 Inndale Drive), Bill Boldenow (9847 Iteria Lane).
City Council Work Session Minutes, May 24, 2021 Page 2
The Council discussed how "taskforce" differs from "committee"/ whether "taskforce" is the
correct word to use for the group, how the group would be able to resolve inequities based on
feedback obtained, potential key words/ vocabulary related to equity that could be defined within
the group, safety concerns - and if these would be addressed, more specificity on the goals/
initiatives outlined in the draft proposal, community education on Lakeville demographics,
qualifications to be a taskforce member, and potentially sending out a community survey to
obtain feedback on whether residents feel this taskforce should move forward.
The Council ultimately decided that a special work session meeting was needed to discuss this
item exclusively; staff will work to finalize a potential date that will be announced at the June 7
regular City Council meeting.
5. 2021C Bond Issuance - Street Reconstruction Projects
Staff is proposing debt issuance to cover the costs of several upcoming projects within the City:
2021 Street Reconstruction Project (#21-02), Highview Avenue Project from 175' Street - 160'
Street (#21-03), 210`h Street Project from Kensington Boulevard to Cedar Avenue (#22-03), and
various water projects. Tammy Omdahl, Managing Director with Northland Securities outlined
the rating review process as well as rates on the bond issuance which is estimated to be $7,920,000
and would carry a bond term of 10 years. The debt payments would be funded through the debt
service tax levy and water operating fund; the 2022 debt service levy is estimated at $1,497,749 - a
4.42% increase based on the total 2021 property tax levy.
The Council clarified any opportunities to improve the City's current credit rating as well as
potentially how the rise in infrastructure construction could impact bond rates. The Council was
in support of moving forward with the 2021C bond issuance under the terms presented by staff.
6. 2021 First Quarter Financial Report
Ms. Erickson 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 2020 year. The Council clarified property tax revenues/ tax
payments to Dakota County as well as any anticipated impact to City building permits as a result
of the rise in construction costs to developers.
7. Park Bond Referendum Discussion
At the January 2020 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 or November 3, 2020. The total cost of the project was estimated at
$27,228,400 in July 2020 which included projects at Antlers Park, Avonlea Community Park, East
Community Park, and cabin/ site improvements at Ritter Farm Park. Other possible projects
City Council Work Session Minutes, May 24, 2021 Page 3
identified included the construction of an outdoor 4`h sheet of ice at Hasse Arena, trail
connectivity, and hard -court repairs/ reconstruction. At that time the results of the survey
showed that a tax impact under $80/ year for a $330,000 home would receive majority support;
however, that survey was conducted before the COVID-19 pandemic. Ultimately the Council
decided that due to uncertainties associated with the pandemic, it was best to postpone
referendum discussions and reconvene at a future date.
Staff is now seeking direction from the Council regarding a possible Parks Bond Referendum at
this time - several timeline scenarios were outlined including holding the referendum November
2,2021 or February 8, April 12, May 10, August 9, or November 8 of 2022. Should the Council
decide to move forward, staff/ the PRNRC would work with Baker Tilly to complete another
survey to determine resident tax tolerance and obtain updated cost estimates for the projects.
The Council reviewed the different scenarios, the previous survey conducted by Baker Tilly, and
cost estimates put together by Northland Securities - and discussed possible construction costs,
scope of work, bidding process/ timeline, potential inflation in materials due to a rise in
construction, and ensuring there was enough time to provide information to the public. The
Council directed staff to bring back a detailed timeline to the June 7t' meeting of what it would
take to hold the referendum in November of 2021 prior to finalizing a decision.
8. Possible Acquisition of Royal Milc Property
Staff is seeking Council feedback on the possible acquisition of the Royal Milc Property as part of
a joint project with the Dakota County Parks Department to identify a trailhead for the Lake
Marion Greenway in the downtown area. The property, located at 8860 Upper 208`h Street West,
which manufacturers/ distributes milk replacers for the livestock industry, is located near the
start of the trail, close to parking, and has room to construct a small trailhead building. The
owner of the Royal Milc has expressed interest in selling the entire property which includes land
needed for a future extension of Iberia Avenue to 210`x' Street. Dakota County has agreed to fund
the trailhead amenities and trail extensions throughout the property; staff has identified the
decertified Southfork TIF District fund balance as a funding source.
The Council clarified the City/ County relationship on this project, on-site rail tracks, and
potential upgrades and/ or possibilities to preserve the history of the building. The Council was
in support of continuing next steps to acquire the property - staff has preliminarily reached out
to obtain an independent appraisal that should be completed in the next four weeks.
8:57pfn - 9:03 p.m.
City Council Work Session Minutes, May 24, 2021 Page 4
9. Dakota County Broadband Board Update
The City of Lakeville entered into a Joint Powers Agreement (JPA) with the Dakota Broadband
Board (DBB) to allow for the establishment of both an institutional (I -Net) and commercial (C-
Net) fiber optic network. Membership in the DBB provides the City with governance for the use
of shared fiber assets, standards for common implementation of fiber optic projects,
consolidation of fiber maintenance costs, and reduction in engineering/ project management
costs. To ensure specific parameters within the partnership, the DBB established an Indefeasible
Right to Use (IRU) document that would provide all members consistency in the length of terms,
efficiency in administering agreements, allow the DBB to market the C -Net to businesses/ other
entities, and document member assets that are included for the I -Net and C -Net use.
Following the City Council's concerns with the document in 2020, staff is now bringing forward
the revised IRU Agreement which includes the amendment that any C -Net use of city fiber must
first receive approval from the City. The City's Technology Work Group has reviewed the
document and feels moving forward with the IRU Agreement is in the best interest of the City.
The DBB is presently looking to go out for Request for Proposal (RFP) to review the systems plan
for the board. In the interim the DBB has asked board members to go back to their Council's to
gain a better understanding of what cities are looking to get out of board membership as well as
their broadband priorities. Council Member Hellier is the City's liaison to the DBB committee.
The Council reviewed the draft document and outlined cost savings being part of the DBB
including substantial savings on locates, as well as the benefits of fiber ownership. They also
discussed residents who are underserved and the possibility to use the American Rescue Plan
Funding, how the C -Net should be defined, the DBB's direction - whether the board should focus
on I -Net/ C -Net/ or both, and the IRU's termination clause. The Council ultimately agreed not
to sign the IRU Agreement at this time, and to instead ask that the DBB provide a better
definition of what C -Net is or is not, and that the I -Net and C -Net have separate agreements.
10. Status of Local Emergency Declaration
As part of the COVID-19 pandemic, the City Council approved Resolution 20-05 Declaring a
Peace Time Emergency. This declaration followed the State of Minnesota peace time emergency
action, and has two main impacts to current operations: 1) The City is able to conduct City
Council and commission meetings in a virtual and/ or hybrid format, and 2) The City previously
relaxed its outdoor patio policy - without the declaration businesses would need to meet City
ordinance requirements. Staff is seeking Council direction on revoking the Declaration of Peace
Time Emergency; such action would require Council approval at a regular City Council Meeting.
City Council Work Session Minutes, May 24, 2021 Page 5
The Council agreed to end the Declaration of Peace Time Emergency - this item will be placed on
the June 7 City Council Meeting agenda for formal approval. Council meetings will continue to
be recorded/ broadcast via Zoom allowing the public to participate and comment remotely.
11. Commission Appreciation Dinner Discussion
Annually the City holds an appreciation dinner in March/ April to recognize the members of the
various boards/ commission; however, this year the Council decided to delay the event due to
COVID-19 protocols. With statewide restrictions loosening, staff sent out a survey to
commission members asking if they would like the event to still be held this year, and if so
whether there was a preference for an indoor or outdoor event. Survey results showed members
wanted the event to still take place. Staff is proposing an outdoor event at one of the City's parks
that is either catered or has food trucks on hand to offer a variety of food options.
The Council was in support of hosting this event at Antler's Park; staff will begin planning to
tentatively hold this event the evening of Wednesday, June 30.
12. Items for Future Discussion
None.
13. Committee/ City Administrator Updates
Council Member Hellier indicated both the liquor and personnel committees reviewed the
proposed payroll increases for the liquor store staff and recommended moving forward with
those increases.
14. The meeting adjourned at 10:36 p.m.
Respectfully submitted,
Tamara N\allace, Deputy ity Clerk
Douglas'. nderson,Mayor