HomeMy WebLinkAbout07-29-96 WS'r
CITY OF LAKEVILLE
CITY COUNCIL WORK SESSION MINUTES
• JULY 29, 1996
The meeting was called to order by Mayor Zaun at 5:00 p.m. in the City Hall administration
meeting room.
Those present: Mayor Zaun, Councilmembers Holberg, Johnson, Mulvihill, Sindt; Robert
Erickson, City Administrator; Michael Sobota, Community and Economic Development.
Director; Dennis Feller, Finance Director; Roger Knutson, City Attorney; Steven Spang,
Vice President of Verified Credentials, Inc.; Robert Brantly, Chair, Lakeville Economic
Development Commission; Gary Tushie, member Economic Development Commission;
Rod Kelsey, Principal and Corporate Vice President, DCA, Inc.; Joni Hubred, Lakeville
Life and Times; Christopher Oace, Cable Coordinator; Leslee Gustafson, Deputy Clerk
Elections.
ITEM NO. 1: Video tape, "THE COMPLEXITIES OF EMPLOYMENT LAW
Mr. Erickson presented a video tape from the LMCIT for the City Council to view entitled
"The Complexities of Employment
After viewing the video, Mr. Erickson stated the City is fortunate to have Mr. Knutson on
staff as City Attorney. Mr. Knutson's skills and good judgment and his conservative and
. defensible positions on personnel issues are important to the City.
Mayor Zaun inquired as to whether veterans preference points are considered. Mr.
Erickson responded that eligible veterans are granted five additional points during the hiring
process. In addition, applicants complete an "Applicant Flow Survey" which identifies their
standing under EEOC guidelines.
Mayor Zaun reported that he has received complaints from citizens regarding boom boxes and
the excessive noise they can create. Other Councilmembers responded that they have
received complaints also. Mr. Erickson said that the problem is prevalent between the hours
of 11:00 p.m and 1:00 a.m. Discussion followed on how the City should deal with the issue.
Mayor Zaun asked if this should be dealt with as a police matter or if the City Attorney
should investigate. The consensus was to invite concerned residents to respond under
citizen comments at a City Council meeting. The Council will then take appropriate action.
ITEM N0.2: Verified Credentials Incorporated
Mr. Sobota introduced Mr. Steven Spang, Vice President and co-owner of Verified
Credentials, Inc. Mr. Spang then introduced Mr. Bill Brisley, project architect and Mr. Dale
Sonnikson, of Amcon, as project manager. Mr. Spang then presented an overview of his
company. Currently located in Burnsville, VCI is a successful national pre-employment
screening service. Founded in 1984 by Mr. Spang and President Duane Burmeister, the
business has acquired a client base of more than 200 companies in 41 states and has a staff
of 26 at this time.
City Council Work Session Minutes
July 29, 1996
Page 2
Mayor Zaun asked who VCI's largest competitor is. Mr. Spang responded that Pinkerton
and Diversified are the major competitors along with several others. However, VCI's sole
business function pre-employment screening unlike many other competitors which have
diversified business activities. Further discussion occurred concerning business practices
and federal and state laws that VCI must follow.
Mr. Spang then introduced Mr. Bill Brisley, project architect. Mr. Brisley stated that the
proposed first phase of the building is 20,000 square feet. VCI will occupy 7,000 square
feet with 6,000 square feet to be leased to Hamco Data Products, Inc., and the remaining
7,000 square feet for expansion. The building will be constructed of concrete and stucco
and include a window wall. The landscaping will include a buffer for the two docks and a
door. The monument sign will be externally lit and the lawn irrigation will be extended from
VCI to this location. The cost for electricity and irrigation will be borne by the Fairfield
Business Campus construction fund. The ongoing maintenance and utility costs will be paid
by the association.
Mayor Zaun inquired as to whether the Fairfield monument sign would obscure the view of
the building and was told the building's elevation is quite high. Mr. Erickson stated some
plantings are being taken out so they won't interfere with the view. There will be no objects
on the roof. The street lights from the downtown area have also been transferred to the
Fairfield Business Campus. Mr. Erickson pointed out this is an excellent example of the
City's Economic Development project involving local area CEO's locating their business in
the City of Lakeville.
Mr. Erickson commented that the mortgage financing credit information has been supplied
by Mr. Spang. Mr. Sobota stated the Economic Development commission has reviewed the
proposal and is recommending approval. Staff will present the final proposal at the August
19th City Council meeting.
Consensus of the City Council was to proceed with the project.
ITEM N0.3: EDC recommendation regarding naming new "Town Square" project.
Mr. Bob Brantly, Chair, Economic Development Commission presented some ideas
proposing the naming of the new "Town Square" project. He suggested the City could
appoint a task force, hold a contest, or appoint outside consultants. People who know the
City and its essence would be preferable. Mr. Brantly said two processes must occur: 1.
Deciding on the information and emotions the City would like to name to convey and, 2.
Selecting the names that best meet these requirements.
Mayor Zaun asked the Councilmembers for direction on how to proceed. Councilmember
Mulvihill expressed some concerns about a contest. Her main concern is what happens if
. there are no appropriate names submitted. Councilmember Sindt feels there needs to be
community involvement. Perhaps a task force could suggest names and then the City
Council could vote. Councilmember Johnson suggested the Economic Development
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City Council Work Session Minutes
July 29, 1996
Page 3
Commission be the task force. Mr. Erickson stated that Kraus Anderson and Mr.Wensmann
have a stake in the name and should be an integral part of the process. Also, input from the
Downtown Business Association would be appropriate. Also, the Friends of the Library
would appreciate being involved.
The City Council requested the Economic Development Commission to proceed with
pursuing a unique name for the Town Square project utilizing the aforementioned criteria.
ITEM NO. 4: EDC recommendation regarding ISD 194 Task Force on Secondary School
Facilities.
Mr. Brantly reviewed a draft letter proposed to be sent to Mr. Bill Forbord, Chair, ISD
#194, from the Economic Development Commission. The EDC requests the City Council's
consideration of this letter supporting the recommendations of the task force on secondary
school facilities. The Commission strongly supports the Task Force recommendations and
anticipates working with ISD 194 to assist in supporting the bond referendum.
Councilmember Sindt requested clarification on the wording of paragraph three in the letter.
The "we", does it mean the Task Force or individuals? Mr. Sobota suggested the "we" be
changed to the Economic Development Commission. He commended the business
• community and ISD 194 on the progress they have made by working together. Mr. Tushie
stated the importance of the new secondary school being the anchor on the north portion of
the proposed Town Square site. He felt the EDC has established an enhanced working
relationship with the business community and ISD 194. Councilmember Holberg noted
there could be a downside in the EDC endorsing a tax increase. Mr. Erickson said Mr. Bob
Vogel, Chamber President, felt there has been renewed understanding and support from the
business community for the effort undertaken by the Task Force. A significant savings,
from a $40 million referendum reduced to $27 million is a positive move.
Mr. Erickson stated the EDC needs to know if the City Council wants to endorse and
support the proposed referendum. Mayor Zaun felt a change in the wording of the letter
would be appropriate. Mr. Erickson suggested reworking the letter and then bringing it
back to the City Council for review and approval.
ITEM NO. S: LMC -ROW Task Force Work Plan -Special Dues Payment
Mr. Roger Knutson provided an overview of the rights of way issue facing cities in
Minnesota. US West's challenge to local management of the public rights of way is a
critical issue facing cities. The League of Minnesota Cities is moving forward with an
aggressive work program and financing plan to counter this challenge. Mr. Knutson stated
the League is requesting a minimum voluntary payment from Lakeville of $1,728.
• Mayor Zaun stated the City Council is willing to support the LMC and their work plan. Mr.
Erickson informed the City Council what options are available for payment. The City could
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July 29, 1996
• Page 4
either authorize payment from the contingency fund this year, or pay after January 1, 1997.
Mayor Zaun asked if there was any opposition to send payment this year. There was no
opposition. Mr. Erickson stated that staff will prepare the budget amendment for City
Council consideration at the August 5th meeting.
ITEM NO. 6: Status update: Scott County road construction to County Road 46 interchange
Councihnember Holberg advised the City Council that an easterly connection between C.R.
27 and the C.R. 46 interchange is no longer being discussed or proposed by Scott County.
According to Keith Nelson, City Engineer, the recommended realignment of C.R. 27 went
to the Scott County Board for approval on July 23rd. The realignment/construction of Scot
County road 21 between Scott County road 87 and Dakota County road 60 (185th Street)
is set for an August 22nd bid opening, with a completion date of late fall of 1997. Mayor
Zaun stated he was opposed to the realignment of C.R. 27.
Discussion followed regarding the current level of development activity in the adjacent
townships. Mr. Erickson informed the City Council that Credit River Township is
proposing to rezone the entire township into two and one half acre lots. The rezoning
would be in conflict with the Scott County Comprehensive Plan and Metropolitan Council
development. From an environmental stand point, smaller lots could be problematic and
change the character of the township. ISD 194 would need to revise their plans. He also
stated the city could not afford to provide the additional park facilities or recreation
programs needed to meet the demand created by increased population. Councilmember
Holberg stated that the City of Savage wants to annex Credit River Township. She feels
ISD 194 should be involved. Mayor Zaun would like to see this item brought forward at a
work session. Mr. Erickson stated this item is on the Planning Commission August 1st and
will come to the City Council on August 19th. He expressed interest in having the City
Attorney notify the Met Council that this proposed rezoning is unacceptable to the City of
Lakeville.
The consensus of the City Council is to bring the matter before the Council at the next work
session.
ITEM NO. 7: Personnel Committee Recommendation regarding DCA total compensation
survey.
Mr. Rod Kelsey provided the City Council with an overview of a DCA letter dated May 1,
1996 and a proposal for conducting a compensation survey for the City of Lakeville. Mr.
Kelsey stated the City of Lakeville had not conducted a compensation survey since 1990.
As such, the Council needs to periodically review the overall compensation system.
The key step in the process is to select comparable benchmark communities. Mr. Kelsey
• recommended that benchmark cities be selected based on their organizational structure
similarities and geographic location. Mr. Kelsey also stated that he would furnish the City
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July 29, 1996
Page 5
Council with a list of metro area cities. Council members should forward to Mr. Kelsey
their recommended benchmark cities on or before Wednesday, August 8th.
Mr. Kelsey stated that the study would involve the collection of salary information and data
concerning benefit plans. The survey would represent across-section of both the public and
private sector. The report will be submitted in approximately six to eight weeks at a cost of
approximately $8,500 to $10,500. Mr. Erickson suggested that the contract language
relating to costs could reflect "a not to exceed" provision.
Councilmember Johnson inquired as to why with a structured study there is a variance in
cost. Mr. Kelsey responded that the amount of information for a survey could affect the
corridor. Councilmember Johnson stated he prefers a very defensible position regarding the
corridor. Mr. Erickson stated that the City has fallen behind in compensation especially for
middle management. A number of employees have either considered or accepted positions
with other organizations as a result of higher compensation. Councilmember Sindt asked
how many positions have been created since 1990. Mr. Erickson responded approximately
twelve to thirteen new positions have been created.
Mr. Kelsey will submit a proposal for a cost not to exceed $9,500 for consideration by the
City Council at the August 5th City Council meeting.
• ITEM 8: Tax Increment project recommendations.
Mr. Feller reviewed his memo dated July 9, 1996. Due to changes approved by the 1996
legislature, cities are required to report and publish the amount of increased property tax
imposed on other properties as a result of the fiscal disparities contribution. The amount of
tax increases as a result of fiscal disparities for fiscal year ended 1995 is $63,053. The Fleet
Farm and Commerce Center projects expired or were decertified in 1995. For 1997, the
Fairfield Business Campus and Century Refining projects will be subject to fiscal disparities
reporting. Mr. Feller noted however, that the Century Refining TIF project can support
fiscal disparities to be taken from the district rather than City wide. The. Tax Increment Plan
should therefore be amended accordingly.
Mr. Feller reviewed the applicable LGA/HACA penalties for TIF districts created for district
expansions which occurred after Apri130, 1994. Only two TIF districts were certified after
that date, Premoulded Products TIF District No. 14 and Century Refining TIF District No.
15. The City Council concurred with Mr. Feller's recommendation to take the LGA/HACA
penalty from the TIF districts.
An analysis was prepared with the intent of preserving the City's future flexibility and
utilization of tax increment financing. As such, Mr. Feller recommended TIF plans and
• budgets for Senior Citizen Housing, DKM Professional Building District No. 3, and
Commerce Center District No. 12 should be amended. Districts proposed for
decertification were Meadows North District No. 5, Century Refimng (2002), and Imperial
Plastics District No. 13 (2002). No changes or adjustments are recommended for Despatch
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July 29, 1996
Page 6
Industries District No. 1, McStop District, Fleet Farm, Southfork Apartments District No.
8, Argonne Plaza District No. 9, and Fairfield Business Park District No. 10.
After some discussion, the City Council authorized Mr. Feller to retain Mr. Walt Hartman to
prepare the necessary resolutions and plan modifications for future consideration by the City
Council to approve the TIF modifications as outlined in the July 9th memo, with the
exception of Imperial Plastics which will be decertified in the year of 1999.
ITEM 9: Status Update: Cable TV franchise fee report.
Mr. Feller reported that as a result of the joint Council/Cable TV Board meeting, he and Mr.
Maliesewski conducted a telephone conference with Marcus Cable representatives. Based
on that conversation and supplemental documentation furnished by Marcus Cable, the City
staff audited the calculations of the franchise fees. As a result, Marcus Cable remitted to the
City $4,973 which represents adjustments to the 1994 and 1995 franchise fees, late fees
beginning on August 1, 1994, other 1995 revenues.
Mr. Oace stated the franchise agreement ends in 1998. Mr. Oace distributed a memo to the
Council with the Cable Board's recommendation to use the additional $4,973 to purchased
equipment for public access. Discussion followed on the appropriate use of this money.
• Mayor Zaun felt this would benefit the entire system and was an appropriate use. Mr.
Erickson stated that Apple Valley had previously contributed approximately $5,000 but
Farmington and Rosemount have not contributed to public access. Mr. Oace pointed out
that Lakeville and the Lakeville School District would be the primary users of this public
access equipment. Mr. Erickson suggested the Cable Board's recommendation to purchase
equipment for public access be discussed at the next work session.
Mr. Erickson mentioned that a recent meeting of the City Administrators of Rosemount,
Apple Valley, Farmington, and Lakeville was held to discuss the possibility of joint Cable
TV franchise negotiations. Mr. Erickson stated that another meeting was schedule;
however, he was not planning on attending. Councilmember Sindt stated franchise
agreements for each city have different expiration dates. Mr. Erickson stated Mr. Oace
could prepare a memo outlining the merits of jointly negotiating franchise renewals.
The City Council directed Mr. Oace to prepare a memo addressing the issues relating to
joint cable franchise negotiations for consideration at the next work session.
ITEM 10: Review tax forfeit property list.
Mr. Feller's report to the Council identifies 17 parcels which are tax forfeited and are
available for acquisition. These parcels were previously offered for sale at a county auction;
• however, there were no bidders. Each of the parcels should be reviewed in terms of
whether they are of value to the City for use as parks, trails, stormwater ponding, economic
development or other public purposes. The City's use of the property will deterrrune
whether it is purchased or acquired at no cost. A significant amount of research would need
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City Council Work Session Minutes
July 29, 1996
Page. 7
to be done to assist the Council in making a determination on these properties. City staff is
requesting authorization from the Council to engage a graduate student intern who would
research the background of each parcel. This intern would then present to Council.
recommendations relating to their use and acquisition.
Mayor Zaun and the Council voiced their support for following the process as outlined.
ITEM 11: Review proposed MCES 1997 operating budget.
Mr. Feller reported that the Metropolitan Council Environmental Services(MCES)
announced they will hold the line on rates for 1997 and a zero rate increase objective for
1998-2000. The MCES intends to reduce debt service levels, exploit technology, improve
internal operations, and reduce staff from 1,112 to 883 employees. Lakeville increased the
rates in 1996 as part of an anticipated two step increase. Mr. Feller proposed a 9% rate
increase for 1997 in lieu of the 11.9% increase that was anticipated. Assuming there are no
surprises in sewer flows, the City will be able to limit annual rate adjustments in 1998 and
future years to those equal to the MCES. Mr. Feller's recommended the City Council
consider a proposed 1997 sanitary sewer 9% increase to $3.00/quarter for the base fee and
$2.17/thousand gallons.
• Councilmember Johnson commented that the 9% may cause some citizen dissatisfaction
now, however, the good news is the City may not have another increase for several years.
Mayor Zaun inquired if some residents would associate the increase with the growth in the
community. Mr. Erickson responded that this is a volume based rate and that the growth
actually helped offset the deficit which was created by consecutive MWCC increases.
Mayor Zaun and the Council agreed with Mr. Feller's recommendation fora 9% increase in
1997.
ITEM 12: Consider Police Department equipment proposal.
Mr. Erickson requested the Council's consideration of advancing the purchase of two squad
cars which were identified in the 1996/1997 budget. A savings of several hundred dollars
per squad car is currently available through Superior Ford. One squad would serve as the
new K-9 unit, and the other would be a new unit for the sergeants. Mr. Erickson
anticipated these cars would get five years of service instead of the normal two. He stated
there would be a corresponding reduction in the 1997 budget. This purchase would.
increase the fleet to officer ratio.
Mayor Zaun and the Council directed the staff to proceed with the budget amendment and
the acquisitions.
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City Council Work Session Minutes
July 29, 1996
Page 8
ITEM 13: Advisory Committee members attendance.
Mr. Erickson stated the current policy regarding attendance at advisory committee meetings
do not leave any leeway for health reasons. He noted that employer demands exceed and
conflict with attendance at meetings for many of the members. He noted that Mr. Lovelace
recently had open heart surgery and had missed three consecutive meetings of the Parks and
Recreation Committee. Mr. Bonde had missed three consecutive meetings due to job
responsibilities and family vacation.
Councilmember Mulvihill commented that the problem intensifies when there are not enough
members present to vote on an issue. Councilmember Sindt asked if the City has ever
considered using alternates. Mr. Erickson suggested that the Council consider giving
commission members attendance credit for participating in subcommittees or association
events. Councilmember Mulvihill thought the alternate suggestion was a good idea. Mr.
Erickson stated retired board members could be used as alternates.
The City Council agreed changes in the attendance policy should be discussed at a future
work session. Until a decision is made, all current members will remain on their respective.
boards.
• Mr. Erickson stated the next work session will include a presentation by Black & Veatch on
the bids received for the water treatment facility. There will also be a hands on
demonstration of the GIS program. The City Council tentatively agreed to a work session
which will be scheduled for August 12, 1996 at 5:00 p.m.
The work session adjourned at 8:10 p.m.
Respectfully submitted,
~f
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'~L lee Gustafson
Deputy Clerk Elections
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