HomeMy WebLinkAbout10-25-2021CITY OF LAKEVILLE
CITY COUNCIL WORK SESSION MINUTES
October 25, 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; Ralph Vetter, Information Technology Manager; Paul Oehme,
Public Works Director; Tamara Wallace, Deputy Clerk
2. Moment of Silence and Flag Pledge.
3. Citizen Comments - See agenda item sections.
4. Technology Workgroup Update
Mr. Vetter gave an update on the Lakeville Technology Workgroup which was established in
2017 with the purpose of evaluating the City's current and future technology requirements and
identifying potential infrastructure improvements. Over the last year the group has met virtually
and discussed impacts to technology due to COVID-19 such as eLearning, working from home,
and bandwidth/ internet coverage concerns; as well as outlined several business and residential
goals. On the business side the group would like to improve infrastructure to attract companies
with higher paying jobs allowing residents to work locally, proactively account for business
expansion, and develop an infrastructure policy. The residential goals include staying ahead of
population growth, communication with residents on present/ future needs, competitive internet
options, improving remote work/ eLearning capabilities, and remaining flexible to account for
implementation of new services. To obtain additional information on how to execute these goals,
the workgroup created a survey for both residents and businesses, however, has delayed sending
the surveys until the City reaches its decision on several Dakota County Broadband (DBB) issues.
The group has also identified other potential topics for future discussion including reviewing the
City's website from a functionality standpoint, pandemic/ emergency preparedness such as cyber -
attacks or data redundancy, and automation opportunities to better inform the community.
Three members of the workgroup - Amy Schmidt, Dr. John Ricketts, and Alan Miner - attended
the meeting; staff is seeking Council feedback on the proposed priorities.
City Council Work Session Minutes, October 25, 2021 Page 2
Jonathan Rice - 16336 Durango Trail
Felt navigation on the City's website was straightforward, however, thought there should be a way
to communicate welcome tips and information to new residents through a text/ email they can
opt into. He would also like to see additional options for internet services.
Dr. John Ricketts, Member of the Lakeville Technology Workgroup
Stated that one of the conversations among the group is revising the City's website to allow for
easy integration with both desktop/ laptop computers as well as mobile devices.
Amy Schmidt, Member of the Lakeville Technology Workgroup
Asked how the Council would prioritize the topics/ goals proposed by the group, interest level in
allocating dollars to researching the City's website navigation for improvements, and the method
in which the Council would like to receive updates on the workgroup's progress moving forward.
The Council clarified whether the group would have any input regarding the Finance
department's ERP Request for Proposal, potential automated processes to make the City's website
a "one stop shop" for residents, taking a closer look at what systems could be immediately
implemented should another pandemic take place, and focus groups comprised of residents
outside the technology field. Council members also discussed ransomware, franchise agreements,
the ability for the City to work with other local/ state officials, funding to obtain/ improve
broadband services in neighborhoods without high speed internet, and bringing the DBB/ C -Net
conversation back to a future work session meeting for further discussion.
5. POP Debrief
Mr. Tom Knutson, President of the Pan-O-Prog (POP) Board, provided an update on how this
year's event went after cancelling the 2020 festivities due to the COVID-19 pandemic. The
festival was a success consisting of approximately 73 individual events, a wide showing of sponsor
support, and nearly 150 volunteers. The POP Board also worked to integrate technology
improvements including a newly designed website, online registration, and enhancements to the
POP Facebook page; and has focused on attracting residents from the North/ Northeast part of
the city by holding events in those neighborhoods to include the POP's 2021 National Night Out.
Looking ahead the POP Board is exploring ways to address parking concerns by increasing (and
advertising) shuttle service presence, brainstorming additional ways to partner with the DLBA,
and continuing to evaluate vendors as well as print media. Mr. Knutson also indicated the Board
voted to give a $5,000 donation to the Lakeville Public Safety Foundation and a $15,000 donation
to the City of Lakeville - both as a thank you for the continued support and partnership.
City Council Work Session Minutes, October 25, 2021 Page 3
The Council discussed attendance and relayed that one piece of feedback provided during the
City's newly established "Cultivating a Sense of Community" workgroup was the request for POP
to have more activities and accessibility for those residents with disabilities.
6. 2022 Proposed Fee Schedule
Ms. Erickson outlined the 2022 recommended fee schedule as part of the annual budget review
process which included the proposed fee schedule changes and explanations. Staff is currently
researching item #10 on the schedule - FEMA vehicle/ response fees, and highlighted added fees
such as the MS4 inspection fee that would be allocated to the environmental resources fund,
changes to the commercial/ industrial fees, increases in the Public Safety Staff Services fees, and a
separate flat fee for Solar Photovoltaic (PV) systems for residential and commercial customers.
The Council briefly discussed the rental fee rates for the Emporium room at the Keokuk Liquor
Store; the utility rate fees will be discussed in depth in the next work session items.
Jonathan Rice, 16336 Durango Trail
Wanted clarification on whether the reductions in revenue as a result of the City's senior discount
program are line-itemed anywhere on the fee schedule. Mr. Rice also felt eliminating the senior
discount program would be unfair treatment to seniors.
The document will be brought back to the November 22 work session meeting for final review;
the Official Fee Schedule would be incorporated into the City's code on January 1, 2022.
7. 2022 Proposed Utility & Liquor Fund Budgets and Utility Rates
Ms. Erickson gave an overview of the proposed 2022 Utility & Liquor Fund budgets and utility
rates. The suggested rate changes incorporate both the proposed 2022 budget as well as staff
projections based on normal volumes utilizing historical data; and reflect estimates for
replacement/ upgrade of aging utilities infrastructure, cash/ financial targets, the American
Rescue Plan Act (ARPA) funds, the Capital Improvement Plan (CIP), and rate impact. These rate
structure changes were outlined and factored into the figures presented by Northland Securities
at the September work session meeting.
The Utility Fund budget considers the City's cost to operate the water system, sanitary sewer
system, streetlights, environmental resources, and personnel additions. Ms. Erickson presented
the utility fee changes incorporated into the proposed revenues for each of the utility funds, and
provided several scenarios to show the projected monthly household impact based on quarterly
water usage levels. The proposed budget also includes the addition of an Environmental
Resources Technician and increasing the Forestry position from part to full time.
City Council Work Session Minutes, October 25, 2021 Page 4
Other items discussed included the senior discount program which staff recommends ending in
its entirety in 2023 and potentially changing the utility billing frequency to monthly versus the
current quarterly system. Staff also provided an overview of the Liquor Fund budget which
considers operating costs for all four stores, and accounts for $1.12 million in transfers from the
Liquor Fund to support City endeavors. The Council clarified the personnel requests, ARPA
funds and how those would be allocated, the possibility of adjusting the rate increases so there is
less of a cash balance, and the expected timeline for the implementation of the fixed base water
meter systems. On the Liquor Budget side the Council discussed the fourth store's sales
assumptions, the police building bond, and any further communication the City can send out to
bring resident awareness to how the municipal liquor stores benefit taxpayers.
Break from 8:08 p.m. - 8:13 p.m.
8. Utility Rate Structure Study
Tammy Omdal from Northland Securities provided an update on the utility rate structure study
specifically as it pertained to the sewer and water consumptions. The purpose of the study was to
examine conservation/ environmental goals and review historical consumption data to develop a
water rate structure consistent with the City's policies and revenue. Ms. Omdal's presentation
considered both the Water and Sanitary Sewer Operating Funds and outlined recommendations
from Northland Securities. Under the proposed rate structure there would not be a discount for
any user - everyone would pay for the total cost of their usage. It is also recommended that any
utility rate changes not be implemented until 2023, allowing residents enough notice and giving
LOGIS time to incorporate the rate structure modifications into the utility billing system.
Ron Nicholas, 17111 Jackson Trail
Stated he was disappointed he was never made aware of the senior discount program. He also
asked if there was any data to show what tier homeowners with irrigation systems usually fall in
and felt there should be more proactive efforts by the City to have residents install smart systems
to monitor their water usage.
Jonathan Rice, 16336 Durango Trail
Indicated that by his calculations, the senior discount program costs the City approximately
$90,000 a year equating to roughly $120/ resident. He felt this was a nominal amount against the
City's total budget and advised against eliminating the program.
The Council clarified schedule for when the base utility rate should be re -analyzed, commercial
usage rates/ consumption, and a communication plan to bring awareness to the utility rate
changes. The Council extensively discussed concerns with potential resident perception that
eliminating the senior discount program was not done thoughtfully or would result in
exorbitantly high bills for homeowners, and overall felt that waiting until 2023 to apply utility
City Council Work Session Minutes, October 25, 2021 Page 5
rate changes would create more confusion amongst residents. Staff was asked to brainstorm ideas
on how to effectively communicate that most customers would see either no change or minimal
increase to their utility bills assuming they are within average water consumption levels. Council
also directed staff to bring a work session item forward in early 2022 related to how the senior
discount is applied to streetlight and sanitary sewer fees.
9. 2021 Third Quarter Financial Report
Ms. Erickson provided a recap of the City's third quarter financial report which included revenue
and expenditure highlights on the General, Communications, Liquor, and Utility Operating
Funds as compared to the 2020 year.
10. Items for Future Discussion - None.
11. Committee/ City Administrator Updates
Mr. Miller - Lakeville could receive monies as part of a class action opioid lawsuit the State of
Minnesota is involved in. Should the lawsuit be successful the monies must go towards opioid
prevention and reduction.
Council Member Lee - The Fire Relief Board has acquired several new waffle irons as a result of a
donation from Lakeville Lions so they will no longer have to rent them for the annual fundraiser.
Council Member Bermel - At the last personnel committee meeting they discussed proposed
changes to the seasonal pay schedule to be in line with minimum wage and City Administrator
Justin Miller's upcoming performance evaluation.
Council Member Volk - The Arenas Board is postponing the grand reopening event of Ames
Arena due to construction delays but there will be a celebration.
Mayor Anderson - The MLC Board is working on a housing legislation proposal to advance
forward the State's need to address the housing shortage. Mayor Anderson and Mr. Miller met
with the Superintendent of School District 196 to discuss concerns on their boundary changes.
12. The meeting adjourned at 9:38 p.m.
submitted,
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Tam allace, Deputy City Clerk Douglas P. Anderson, Mayor