HomeMy WebLinkAbout11-10-04 WS• CITI' OF LAKEVILLE
COUNCIL WORK SESSION
MARIUN CONFERENCE ~'OOM
NOVEMBER 10,2004 ~ 4:00 PM
In attendance: Mayor Bob Johnson; Council Members: David Luick, Laurie Rieb, Wendy Wulff,
and Mark Bellows.
.Also in attendance: City Administrator Steve Mielke, Asst. to City Administrator Brian Anderson,..
City Engineer Keith Nelson, CECJ Director Dave Ofson, NAC Representative David Licht, and
Finance Director Dennis Feller.
i} Improvement Projects: Kirhen Ave. & Appaloosa Farms
Kirben Avenue
Keith Nelson :informed the City Council of the I~irben Avenue petition for sanitary sewer,
watermain and street improvements as outlined in the packet memo. Five out of nine residents
that live along Kirben Avenue submitted a Petition for sanitary sewer, ~=atermain and street
• improvements. The issue of sanitary seti~>er and watern~ain has been brought up several times in
the past, but there always seems to be opposition from same of the residents due t~ the fact that
they recently upgraded their. well or septic system and were not interested at that time for city
improvements. Steve Schroeder «Tants to re-build his home and desires sewer and water
because the setback from Orchard Lake would be ~~ feet rather than s.oo feet of unsewered. Mr.
Schroeder engaged the services of James R. Hill & Associates to develop a current cost estimate
for the installation of sewer and water. The engineering department spent several days
surveying the roadway and worked with James R. Hiil & Associates to provide a realistic cost
estimate, which was estimated at w36,8oo per unit. Mr. Schroeder circulated the attached
Petition through the neighborhood.
Staff held a neighborhood .meeting on October 28, 2004 to which seven residents attended.
Several residents pointed out that they have upgraded systems and that the estimated __
assessments were high. One of the reasons costs are high is due to a single-sided benefit,
whereas the east side of Kirben Avenue is generally wetland and unbuildablc. Due to the single
sided benefit, several residents questioned if the City tivould participate in .costs to lower
assessments. If so, they would reconsider the proposed improvements.
Mayor Johnson inquired if any of the current sewer systems are causing pollution problems to
the area. Mr. Nelson stated that many of the residents have recently upgraded their septic
systems and pollution was not an issue. Council Member Luick inquired about the pros and
cons to restoring the road back to gravel versus blacktop and eliminating the retaining wall in
order to bi7ng down the estimated construction costs. Mr. Nelson stated that maintaining a
gravel road was a big issue and the cost sa~ings wouldn't be that significant. Mr. Nelson then
stated that only four of the seven. property owners ~tirho showed up at the neighborhood meeting
signed the petition simply to inquire about estimated costs. City- Council felt that the price for
the improvements will never go down and there isn't any reason the City should pay half when
this is a private issue.
City Council directed staff to research and offer to the residents5 the construction cast savings of
not moving the road from it's current location and lea~~ing it a gravel road after the water and
sewer improvements were made.
Mr. Mielke then suggested that for this project, the City continue its past practice of receiving
written authorization from all residents before the improvement project would commence. It is
possible that a resident would hire an attorney and contest the assessment if they feel the City ,
can't prove value and benefit of the project when the residents have a urorking septic system.
Appaloosa Farms
Mr. Nelson. informed the City Council that Appaloosa Farms is a develapment of large, unplatted
Tats (2.5 acrest) located along Iteri .avenue, east of CR 5o and south of 192nd Street. Roger Gilb
and. several others along Iteri Court Nest and Iteri Court East are interested in sanitary seiner
and watermain. The engineering department worked up a cost estimate and estimated
.assessments at $20,400 for sanitary sewer, rvatermain, and a paved 24' wide roadway. Mr: Glb
circulated the Petition through the entire neighborhood, and i8 otrt of 21 residents signed a
Petition rti~th interest. A rural street section was proposed to keep project casts at a minimum.
Ponding would be required if curb and. gutter and storm sewer were constructed, and this would
be an additional cast.
Mr. Nelsan then stated this subdivision is within our wellhead protection area, and it would be
desirable to eliminate wells and on-site septic systems. A neighborhood meeting. will be
scheduled in the near future. In order to develop accurate estimates far a feasibility .report, the
area should. be surveyed. A proposal from WSB & Associates pro~~ided a field survey services at
an hourly cast .not to exceed $9,580.00. City Council. directed staff to proceed with the flan and
suz-~-ey the project before snorv-fall so design could occur this winter. •
2) I.ake~nlle jFarmin~ton Interceptor Sewer
Mi:. Mielke informed. the City Cotmcil that he was accompanied rti~ith Mayor ~Tohnson, Keith
Nelsan, and Farmington City Administrator Dave Urbia at a meeting with Chair and staff
members of the Metropolitan Cauncil to discuss future sanitarF-~ sewer service to the Urban
Reserve Areas of both Farmington and Lakeville. Lakeville and. Farmington are contending. that
it should. be interceptor serr~ce. To date, the Met Council has contended that this shauld be a
trunk service provided b~=the cities.
17uring the meeting, -the sewer service was discussed, .but the .primary topic became .that of
accommodating gro~~h and the Met Council's desire to see Lakeville join the transit system. It
was strongly= implied that their willingness to consider cost sharing on the Urban Reserve Area
was predicated on Lakeville's actions relative to joining the transit system. In response it was
pointed out that transit alone would not accommodate grorr~th and that the transportation
system in general is inadequate and does not serve Lakeville well.
Ultimately, there ryas no decision made on the sewer issues and. there was an agreement that
I.aker~ille would meet rti~ith the transit staff to discuss the options and implications of the City
participating in the serr-ice area for transit. Mr, Mielke expects it would be a long discussion
rr~ith the need. far Lakeville to strongly consider its intentions relative to transit prior to resohing
any sewer service issues. To Lakerrille's advantage, the Urban Reserve is not planned for sewer
serr~ce for at least eight rears so there is no hurry in making a decision. In addition, Laker~lle •
daes not have to join the Met Council transit taxing district in order to provide Transit services
for Lakeville residents. Lakeville can contract out transit seir.=ices rtilth any number of transit
canlpanies that prvv~de the service Lakerrillc seeks which may appear to be more feasible when
comparing the transit taxes paid to the Met Council versus the service Lake~~ille would receive.
• Therefore, joining the transit taxing district at this time is not being recommended. Mayor and
Council agreed that Lake~=ille needs to keep the communication channels open with the Met
Council, however, they saw no urgency to join at this time.
g} Scott County Comprehensive Plan RevieKT
Mr. Olson introduced the City Council to the Southeast Scott County Comprehensive Plan
Review and. stated that David Licht of NAC w-i11 present the salient components of the
preliminary draft. Mr. Licht stated. that the Southeast Scott County Comprehensi~=e Plan update
can be div=ided into two distinct areas. The first are local matters and the second are regional
concerns. Regarding local issues, the three primary topics of the plan that generate possible
concerns for the City are development control, transportation and ~=atersheds. Mr. Licht then
outlined the concerns as discussed in his plan renew.
Mr. Licht stated in closing the real and most critical issues-posed by their plan are regional and
Met Council matters over which Scott County and its local units have no control. Lakeville will
have to closely monitor and evaluate the pending Met Systems Plan Update dealing. with. the
Empire Treatment Plant and related interceptors to insure that its needs and interests are
properly recognized: and accommodated. The City's continued participation ~~~ith neighboring
units, regional and state agencies for impro~~ing the capabilities and functioning of I-3~ is also
extremely important for the v=itality of the community.
Mayor Johnson inquired if the regulatory agencies had enough control to keep the plan on .track
as they have stated. Mr. Licht felt they did have enough control because they use sewer service
• as a bargaining tool to get communities to dimply ~~~ith theregulatory plans. Council Member
Wulff expressed. her concern aver the future of all tile. septic systems that reside in the comp
plan and the ground water impact of servicing those lots. Mr. Licht agreed and w-il1 revise his
comments to reflect the Councils concern. However, it would also be beneficial to raise that
issue as an implementation item when details of the metro sewer gets extended being a plan
isn't that detailed and doesn't bind a community. City Council directed staff to revise the formal
comments and bring them forward at a future Council Meeting prior to sending them to Scott
County.
4} Stonebridge Apartments
Mr. Olson provided fihe Council ~ti=ith a brief summary of a proposed Stonebridge Apartment
development which exploring the possibility of a ~6-unit apartment project in the Prairie Lake
development, west of I-35. The developer has been in contact with Dakota County= Community
Development Agency (CDA) and. is examining various financing programs consisting of housing
bonds and tax increment financing, both of which would be administered by the Dakota County
CDA. The developers are proposing 20% of the '76 .units would be available at 50% of .the
median income and another 20% for persons at 6a% of the median income, based on family
size. Staff has approached the developer ~aZth various rental options and in most situations, the
developer would need TIF in order to assist in financing the mixed-use housing project. They
could potentially build a complex ~ti~ithout .TIF by building condos, ai-ops, or another non-TIF
type of housing.
Mayor Johnson stated he has concerns aver the precedence that would be set by allowing a
combined housing project involving TIF being the City has never supported this type of
development in the past.. He felt there is no valid cause to use TIF in this area being it is a
prestigious area of Lake~zile that. has several housing developments currently under
cvnstruction ~~~thout TIF assistance. Council Nlember Wulff agreed with the Mayor in that
Lake«lle doesn't need to subsidize affordable housing when the hvusing demands are already
being met in the community according to the high vacancy rates and the number of units that •
coatinue to be built. It would not be a wise use of tax dollars to construct new hvusing which
would then compete with the tight market within the community. The Mayor then mentioned
that he would prefer WOrklllg with the Dakota County CDA rather than individuals. in
constructing new housing being the CDA has a history of successful projects in the communitj=.
The City Council consensus was not to support a subsidized project fvr the reasons .previously ,
mentioned.
~) 2005-06 Budget Review
Mr. Feller ,presented the changes of the preliminary 2005 budget and tax levy to the City Council
and briefly. touched on the questions raised at the August z3 work session as outlined in the
packet. Some of t12e notable changes to tl2e budget were the. amount of personnel revenue saved
from the recent retirement of a lieutenant; the future. hiring of two seasonal positions to
maintain the bathrooms and beaches during the summer months, tl~e King Park Athletic
Complex road construction. and deti=elopment project funded from Liquor funds; and the
additive of a utilitti=billing temporary positive why was hired this past November. The proposed
fund balazlce as a percent of expenditures still equals 44.i% of the General Fund.
In addition, the sanitary sewer increase equates tv $i.z6 per quarter and Dakota Electric
Association rate increase equates to $0.35 for a combine total of $1.61 per quarter per single
family home. On a final note, the tax capacity rate has ii2creased from earlier projections due to
fiscal disparities distributive, which equates to a $14 increase vn a $z4v,ooo in Lakeville for
200,5. The City Cvuneil agreed to tax the property owners the difference .and had no further. •
questions regarding the budget proposal.
6) Ice arena Agreement/Memo of Understanding
Mr. Miclke distributed a draft of the Joint Powers Agreement fvr Ice Arena. Cvmplex to the City
Councih The recently approved KPAC agreement is contingent upon the City working to secure
the construction of an ice arena. It has been suggested that the City build the ice arena with a
partner and it has been suggested that partner be ISD xg4. Recently the schovl board did direct
its staff to work ~~ith tlae City in crafting an outline vn hog-v a partnership on ice arenas would
work.
In developing this draft agreement, their concerns are similar to the City's, which. are
governance and management of the facility. It is understood that the idea is tv develop a 50/50
deal where the debt and operating expenses are shared equally bet<aeen ISD i94 and. the City.
However, through proper management, financial shortfalls can be eliminated if not avoided.
Mr. Miclke then stated that the KPAC agreement calls for an ice arena agreement that must be
in place by the end of the year. However, due tv time constraints, it has been suggested that a
letter of understanding w=ith an outline on how an agreement could work ~a-ill be submitted in its
place while the draft agreement is being finalized. Mr. Feller then explained the salient facets of
the agreement as vutline in the agreement. City Cvuneil briefly discussed the agreement and
directed. staff to have the City attorney draft a letter of understanding, which will be ready for
approval in December by both ISD 1g4 and the City.
NIr. Miclke then informed .the City- Cvuneil that a schovl board member has invited a •
development company, Sportcomm Management, from Cudahy Vb'isconsin to come to Lakeville
and propose a free standing five sheet ice arena, similar to the one they are developing in
Cudahy. In addition.. the. arena could be attached. to a hotel and restaurants. The arena cost
could be estimated at $3i million. In talking with the developer, Cudahy viewed their ice arena
as a redevelopment option as they are an older community ~*ith no ice facilities around their
borders. The developer stated that no general funds. would. be used to support the Cudahy
arena. However, $21 million would be TIF along with another $7 million_from previous TIF
projects that would be pooled to cover $28 of the $3i million for this facility. Mr. Mielke then
stated that school districts don't have TIF and strongly recommended. not :getting involved in
this proposal. being it's not feasible. The City Council agreed that. this proposal is not in the best
interest of the City.
7) Other Business
_ 8) ` Adjourn
The meeting adjourned at 6:2~ p.m.
Respectfully submitted,
Brian J. - Berson
~.ssistant to City Adrninistrat~ar
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