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HomeMy WebLinkAbout04-30-03 WS• CITY OF LAKEVILLE COUNCIL WORK SESSION MEETING MINUTES April 30, 2003 Present: Mayor Bob Johnson, Council Members Bellows, Rieb, and Wulff; City Administrator Bob Erickson; Finance Director Dennis Feller; City Engineer Keith Nelson; Parks and Recreation Director Steve Michaud; City Attorney Jim Walston, and Assistant to City Administrator Brian Anderson. Item No. 1. Update from Jim Walston on the acquisition of property located at 18945 Highway 35W. City Attorney Jim Walston provided an overview of the five properties along I-35/Knollwood Cir. Mr. Walston stated that three of the five properties have been purchased by the City either through forfeiture or from HUD within the past three years. The intent was to purchase the properties before the County Road 60 Interchange improvements took place and preserve the area as open space. Mr. Walston went on to state that he has been attempting to negotiate a purchase price for the Jungels property and the property next door for the past two years. He has been unsuccessful in his attempt to buy the Jungels property as they have countered the City's offer of $200,000 with an offer of $425,000. The • City's offer was based on the county's taxable market value of the property and a third party appraisal. Mr. Walston stated that both homes are non-conforming and are starting to become neglected and aesthetically unpleasing. He went on to say that Mrs. Jungels' relatives are concerned about her health and how the sale of the property would affect her current government assistance. Mr. Walston and City Administrator Bob Erickson also stated that Mrs. Jungels has declined any offers made by the city over the past two years, including a life estate on the property. Mayor Johnson inquired about the actual market value of the Jungels property, which Mr. Walston estimated to be about $200,000. Mr. Walston reiterated that they were asking $425,000 because that's what other property owners on Lake Marion were receiving for their homes. He also went on to state that he could not advise the City to offer them any more for their home. Mr. Erickson proposed that staff be allowed to proceed with acquisition of the properties through eminent domain. This would allow the City to lock into a purchase price with each of the properties, yet withdraw from the legal proceedings of acquiring the properties should the City so desire. Mayor Johnson inquired about the necessity of acquiring the property. Mr. Erickson replied that the structures are non-conforming, have become rundown, and the land would be best used as conservancy/open space. He also stated they have been dealing with the property owners for two years and the time to act is now as the price of both homes keep rising. Both Mr. Erickson and Mr. Walston agreed .that the courts should favor the City in the • condemnation process. Work Session Minutes - 2 - April 30, 2003 Mayor Johnson polled the Council for their reaction to proceeding with eminent domain of both properties. The Council was in favor and it was decided that Mr. Walston should prepare a resolution of condemnation. Item No. 2. Review Proposed 2003-2007 Capital Improvement Plan. City Engineer Keith Nelson led the discussion by briefing the Council on a series of five Capital Improvement Plan (CIP) exhibits, years' 2003-2007. Each exhibit showed the proposed street, water, sanitary sewer, and stormwater improvements that would be taking place during each year. Some of the highlights for 2003 are the completion of I-35/CSAH 60 Interchange ramps & Kenrick Ave realignment, I-35/CSAH 50/CR 5 right of way acquisition, the construction of well. # 17, the rehabilitation of wells # 2,9, and 10, and the overlay of 165t" St. from Kenrick Ave to Ipava Ave. Highlights for 2004 include the I-35/CSAH 60 improvements with new bridges over I-35W and the upgrade of CR 60 to four-lane divided from I-35W to Scott County. Also, I- 35/CSAH 50/CR 5 phase I construction with an upgrade to a four-lane roadway from I-35 to Jurel Way and a fourth lane under the I-35 overpass. Signals will also be installed at CR 46/I-35 ramps and wells #2 & 4 collection pipe along Dodd Blvd. from Gerdine Path to the WTF. • Mr. Nelson stated that years 2005 and 2006 were a tittle lighter than the preceding two years but that they included the widening of 175t" Street to a 3-lane roadway from Junelle Path to Ipava Ave., the overlay of Klamath Trail and 210t" St., more collector overlays, and additional well and lift station rehabilitation. Council Member Wulff questioned the merits of overlaying 210t" Street versus applying that money to upgrading 210t" Street to a three-lane road. Council agreed as part of the 2004 CIP review process, City Engineer Keith Nelson would provide a cost analysis for 210'" Street. The I-35/CSAH 70 Interchange project is anticipated to get underway in 2007.. Mr. Nelson commented that the county has not budgeted for the interchange project but will consider funding the project if they received federal/state assistance. Mr. Erickson noted that acquisition of businesses or significant land holdings would not be required as part of this project, which reduces the overall cost. Mr. Nelson went on to say that the new diamond design will flow nicely with the existing roads, which will also helps keep the overall cost to a minimum. Finance Director Dennis Feller discussed briefly with the Council the status of the Joint Powers Agreement for Judicial Rd. Mr. Feller stated that 70% of the traffic comes from Credit River Township and 30% is from Lakeville residents and that Lakeville is trying to get reimbursed for their. usage of the overlay project. Mr. Erickson stated that in the not so distant future the split would become closer to 90/10 as more of the Credit River Township • residents are using Judicial Rd. Work Session Minutes - 3 - April 30, 2003 Mayor Johnson inquired about the condition of the roads in Dakota Heights as he felt they could use some patching .and overlays. Mr. Erickson assured him that money has been earmarked for the patching of those roads. There were no further questions by the Council. With the completion of Mr. Nelson's presentation, Mr. Feller proceeded to discuss with Council the items under the "blue" labels in the 2003-2007 CIP binders. He outlined how the major projects would be funded and made them aware of each of the fund balances. The main discussion related to some policy issues that Mr. Feller presented for the Councils consideration. The first item that was discussed by Mr. Feller was to request the Council's authorization to allow for the use of $1.8 million of the Public Works Reserve Fund to assist in purchasing the land needed for the future public works facility and reservoir. Mayor Johnson inquired as to the total land acquisition cost and was informed the total amount would be approximately $2 million. City Council expressed their support for the use of the $1.8 million reserve to acquire the land before the price escalates. Mr. Feller then requested Council approval to allow staff to analyze the cost of acquiring the marginal buffer area between the wetland and the upland areas in new subdivisions with storm sewer trunk funds. Historically, staff has used park dedication funds to acquire these parcels in new developments. This action would allow the parks department to put those savings towards park and trail development versus land acquisition. Staff further recommended that BARR Engineering be hired to study the City's storm sewer rates. This • will confirm that the City's rates are adequate and not excessive in accordance with the City's Comprehensive Storm Sewer Plan. Mr. Feller stated that the current fund balance is approaching $5 million. Mayor Johnson agreed that it represents prudent planning by the City. The Council then agreed to proceed with the study by BARR. The third policy issue that was presented for Council's consideration was increasing the water utility connection charges and decreasing the sanitary sewer connection charges. Mr. Feller stated that the bottom line for the residential construction would remain the same. The reason for the change would be to increase the amount of money in the water trunk fund and decrease the amount in the sanitary reserve fund. The demand and cost for water related capital improvement items are higher than sanitary and this would allow the City to properly fund future water related expansions. Mr. Feller went on to say that Lakeville has the second lowest water rates in Dakota County and our neighboring cities are 50-100% higher. One reason is due to funding the water infrastructure improvements such as wells, towers, and the WTF with connection charges rather than water revenues. The Council unanimously agreed to allow staff to pursue a revision in connection charge fees, knowing the combined fees would not increase. The final policy issue brought before the Council for direction dealt with continuing the use of liquor funds to pay the debt service for Fire Station #4. Council Member Wulff asked how long before Fire Station 4 is paid for and Mr. Feller replied 20 years. Mr. Erickson stated that if "Wine in Grocery Store" legislation is adopted, liquor profits could decline by approximately $195,000 annually, which would necessitate that dollar amount being levied for the 2002 fire station debt service. The Council expressed their support to use the • liquor store profits to fund the debt service for Fire Station #4. Work Session Minutes April 30, 2003 Item No. 3. Review Proposed 2003 Park peve/opment. -4- Parks and Recreation Director Steve Michaud started the park development discussion by outlining specific programs for the Council in the park development fund. Some of those items included an explanation of the need for legal services, the justification behind the new signage program that is in place, the success the City has had using STS labor, along with some other highlights. Mr. Michaud then displayed two exhibits for the Council. The first exhibit was the 2003 Proposed Park Dedication Fund where he talked briefly about the 13 projects scheduled for 2003. Some of the highlights were the construction of Klamath Trail Phase III, Oaks of Lakevilla Trail, and Village Creek. He then walked the Council through the 14 items on the 2004 Proposed Park Dedication Fund exhibit. Some of those highlights were the construction of the Prairie Lake Park/Phase I, Meadows Park Parking Lot, Lakeridge Park playground, along with the construction of additional trails. During the presentation, Mr. Michaud explained the park building process to the Council along with the development of trails, ball fields, and their funding sources. He stated that the whole process has worked well in the .past and anticipates continued success. Mayor Johnson then proposed that staff set aside $500,000 for opportunities such as the need for a community center. This money would be used for the land acquisition for such a • project. Council Members Bellows, Rieb, and Wulff agreed with Mayor Johnson and each stated that's what the community desires. Item No. 4. Review Proposed 2003 Budget "Holds" as of April 11, 2003. Mr. Erickson stated that Lakeville is the only City that has not paid their dues to the Association of Metropolitan Municipalities (AMM). He stated that Lakeville has used AMM's services for the past four months and has been very satisfied. He went on to say that Lakeville has utilized the AMM extensively this legislative session and feels the City should pay the 2003 dues. . Mayor Johnson asked if Lakeville has the funds to pay them. Mr. Erickson assured him that there was enough to cover their dues. Then Mayor Johnson polled the Council for questions, which there were none. Council directed staff to pay the AMM dues as budgeted. Item No. 5. Other business. - City Administrator Bob Erickson gave an update on the ISD 194 fiber optic communications project, DR Horton property acquisition to accommodate infrastructure for a new Lakeville High School, and the Credit River Township AUAR process. • . r Work Session Minutes Apri/ 30, 2003 -Jr- • - Mr. Erickson informed the Council of a Hamburg Avenue neighborhood meeting which was held Tuesday, May 6th with 13 of the 15 homeowners present.. He stated that residents are required to hook up to the new sanitary sewer line at a cost of approximately $7,000 per unit. He went on to state that the overall meeting was very positive. In addition, the City ended up receiving eight additional signatures on the petition that evening, which was a very encouraging sign. - Mayor Johnson then stated he would be unavailable for the May 29th DARE Graduation at Lake Marion Elementary School. Mr. Erickson said he could attend and speak at the graduation for the Mayor. Item No. 6. Adjourn. The meeting adjourned at 6:26 PM Respectfully submitted, ~, ____.. Brian J. Anderson Assistant to City Administrator n U