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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 •