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Home My WebLink About11-01-2021CITY OF LAKEVILLE CITY COUNCIL MEETING MINUTES November 01, 2021 Mayor Anderson called the meeting to order at 6:30 p.m. Members Present: Mayor Anderson, Council Members Bermel, Hellier, Lee, Volk Staff Present: Justin Miller, City Administrator; Andrea McDowell Poehler, City Attorney; Paul Oehme, Public Works Director; David Olson, Community & Economic Development Director; Jerilyn Erickson, Finance Director; John Hennen, Parks & Recreation Director; Daryl Morey, Planning Director; Charlene Friedges, City Clerk 3. Citizen Comments: • John Rice, 16336 Durango Trail, stated he feels the council members should study the financial management plan, proposed water rate structure and senior discount program further before taking a vote on it. 4. Additional Agenda Information: • No additional agenda information 5. Presentations/Introductions: • Director John Hennen presented the Parks & Recreation Quarterly Report. 6. Consent Agenda: Motion was made by Hellier, seconded by Lee, to approve the following: a. Check Register Summary b. Minutes of the 10/18/2021 City Council Meeting c. Set a Special City Council Meeting to be held at 4:30 p.m. on November 8, 2021 to Canvass the Special Election Results d. Resolution No. 21-151 approving Amendment to Purchase Agreement for property located at 17471 Kenwood Trail e. Professional Services Proposal with WSB for Casperson Park Bandshell final design CITY COUNCIL Minutes, November 01, 2021 Page 2 f. Declaration of Permanent Drainage and Utility Easement for 210th Street Reconstruction Project g. Resolution No. 21-152 approving the South Ryan Addition final plat h. Findings of fact and minor variance for side yard setback at 16855 Interlachen Boulevard i. Ordinance No. 1054 amending Title 7, Chapter 15 of the Lakeville City Code regarding right-of-way management and summary ordinance for publication j. Agreement with myTalk 107.1 for Radio Advertising k. Resolution No. 21-153 approving Ninth Elementary Addition preliminary and final plat 1. Ordinance No. 1055 amending Planned Unit Development District for Friedges Landscaping and South Metro Rental m. Easement Agreement and Quit Claim Deed for County State Aid Highway 9 (179th Street) Realignment Voice vote was taken on the motion. Ayes - unanimous 7. Service Charge in Special Service District No. 1 for Taxes Payable 2022 Finance Director Jerilyn Erickson stated the Special Service District Advisory Board has requested City Council consideration of levying a special service charge payable in 2022 and approval of the budget for the period of July 1, 2022 to June 30, 2023. The Special Service District Advisory Board is recommending that the service charge payable remain at zero for 2022. Tricia DeMarais of the Downtown Lakeville Business Association stated the DLBA still has a surplus that it is spending down and requests a zero charge for 2022. She explained that the association is focusing on events and activities that benefit the entire downtown. Motion was made by Hellier, seconded by Bermel, to close the public hearing. Voice vote was taken on the motion. Ayes - unanimous Motion was made by Hellier, seconded by Volk, to approve Resolution No. 21-154 Imposing a Service Charge in Special Service District No. 1 for Taxes Payable 2022. Roll call was taken on the motion. Ayes - Anderson, Bermel, Hellier, Lee, Volk CITY COUNCIL Minutes, November 01, 2021 Page 3 8. Issuance and Sale of General Obligation Refunding Bonds, Series 2022A Tammy Omdal of Northland Securities presented the proposed bond issuance, which will authorize refunding the outstanding maturities of existing debt issues to achieve interest savings. Based on current market conditions, the refunding will result in an estimated $1.3 million in gross savings. Motion was made by Bermel, seconded by Hellier, to approve Resolution No. 21-155 Authorizing Issuance and Sale of General Obligation Refunding Bonds, Series 2022A. Roll call was taken on the motion. Ayes - Anderson, Bermel, Hellier, Lee, Volk 9. Accept Financial Management Plan for Water and Sanitary Sewer Operating Funds with Proposed Water Rate Structure Ms. Omdal presented the proposed Financial Management Plan for water and sanitary sewer operating funds with a proposed water rate structure. She explained that the focus of the plan is on revenue sufficiency and rate calculation for the water and sewer operating funds. She stated the city currently has a tiered billing structure and a discount program for qualified seniors. The proposed rate structure for consideration would achieve the same revenue sufficiency as the current structure. Any changes in rate structure are being proposed to remove subsidies and to ensure that all customers with lower consumption pay less and all customers with higher consumption pay more. Ms. Omdal stated most customers with average or lower volume usage will see minimal change. Customers enrolled in the senior discount program would no longer receive discounts. She pointed out that most seniors would pay less for volume billed under the new rate structure. Council Members Lee and Volk asked about possibly of continuing the senior discount on certain parts of the utility bill (sanitary sewer and streetlights), which were not included with this recent study, while continuing with the water tiers as proposed. Ms. Erickson explained that there is currently a cap on sanitary sewer, and streetlight charges are linked with the water rates so a different calculation could be complicated to administer. Mayor Anderson stated he feels that eliminating the senior discount on water and streetlights is appropriate; and he agreed with Lee and Volk that some additional discussion on how to handle the sanitary sewer component may be appropriate. Ron Nicholas, 17111 Jackson Trail, stated he feels the senior discount should not be eliminated. CITY COUNCIL Minutes, November 01, 2021 Page 4 Bob Erickson spoke in support of the 2023 option for implementation as it would allow time for the City to properly educate its utility customers. Council members were in support of Implementation Option 1. Under this option, a three percent increase would be implemented in 2022 based on the existing rate structure, and the new rate structure would be implemented with the February 2023 billing. This option provides sufficient time to adequately communicate with all utility customers regarding the impact of the new water rates so they are able to fully understand the goals of the new rate structure and to plan (budget) proactively. Council Member Lee expressed a desire to continue discussion and review of the sanitary sewer and streetlight portions of the bill. Motion was made by Hellier, seconded by Volk, to accept the Financial Management Plan for Water and Sanitary Sewer Operating Funds with Proposed Water Rate Structure. Roll call was taken on the motion. Ayes - Anderson, Bermel, Hellier, Lee, Volk 10. United Christian Academy Representatives of Kotula Properties, United Christian Academy, Neurosciences Institute of Pastoral Medicine and Sano Wellness Center requested council approval of the United Christian Academy comprehensive plan and zoning map amendments. Dan Licht of The Planning Company presented the staff report. He stated the developer is requesting an amendment to the 2040 Comprehensive Plan to re -guide property from Commercial to Medium/High Density Residential and a Zoning Map amendment to rezone property from C-3, General Commercial District to RM -2, Medium Density Residential District for United Christian Academy (UCA), which proposes a pre -K through 12 private school campus on the 47 -acre Hack property located south of 210th Street (CSAH 70) and west of I-35. A Neurosciences Institute of Pastoral Medicine (NSIPM) and a Sano Wellness Center are also proposed on the westerly portion of the campus on property that will remain zoned C-3 District. The developer is requesting that the portion of the property to be developed with the UCA facility and outdoor athletic facilities be guided for Medium -to -High Density Residential land uses on the 2040 Land Use Plan map and rezoned to RM -2, Medium Density Residential District. The portion of the property to be developed with the NSIPM and Sano facilities, as well as the portion of the property north of Keswick Loop, are to remain guided for commercial land uses and zoned C-3 District. CITY COUNCIL Minutes, November 01, 2021 Bob Erickson spoke in support of the project. Page 5 Motion was made by Lee, seconded by Bermel, to approve Resolution No. 21-156 amending the 2040 Comprehensive Plan and Ordinance No. 1056 amending the Zoning Map for United Christian Academy. Roll call was taken on the motion. Ayes - Anderson, Bermel, Hellier, Lee, Volk 11. Unfinished business: No unfinished business 12. New business: No new business 13. Announcements: • Next Regular Meeting, November 15, 2021 • Special Meeting, November 8, 2021 Motion was made by Hellier, seconded by Volk, to adjourn. Voice vote was taken on the motion. Ayes - unanimous The meeting adjourned at 8:23 p.m. Respectfully submitted, G� Charlene Friedges, City C k Douglas P. Anderson, Mayor