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HomeMy WebLinkAbout01-29-08 WSMinutes City of Lakeville City Council Work Session Tuesday, January 29, 2008 @ 5:3o p.m. Marion Conference Room, Lakeville City Hall In attendance: Mayor Holly Dahl and Council Members Wendy Wulff, Laurie Rieb, Mark Bellows and Kerrin Swecker. Also in attendance: City Administrator Steve Mielke, Assistant to City Administrator Brian Anderson, Community and Economic Development Director Dave Olson, Finance Director Dennis Feller, Associate Planner Allyn Kuennen, Police Chief Tom Vonhof, Parks and Recreation Director Steve Michaud, County Engineer Mark Krebsbach, Maxfield Research Representative Jay Thompson and Brian Smith, NAC Representative Dan Licht, Phil Boelter of the Catholic Finance Corporation and Paul Tietz, bond attorney for Briggs and Morgan. • The meeting was called to order at 5:3o p.m. i. Transportation Finance Discussion Dakota County Engineer and Transportation Director Mark Krebsbach provided a general transportation overview of transportation issues and some of the strategies that are being used for financing at the county level. Current projects planned in Dakota County include the Hastings bridge; an additional lane on 35E; and improvements to the interchanges of Highways 52/42, and I35/Co. Rd. ~o. MnDOT has estimated at least $ ~ Billion is needed in the metro area for transportation improvements. Because of the budget shortfall at MnDOT, there is an increased need in local funding (County and City monies) for regional transportation projects. With a lack of funding for highways, the focus is leaning more heavily on transit, especially commuter orientation to the downtown and the major transit corridors. It's estimated that by 2025 an additional loo,ooo residents will be added and vehicle miles driven on county roads will almost double from one billion to 1.9 billion miles annually. Congestion on county highways will grow from 3i miles in 200o to 115 miles predicted by 2025, or about one-quarter of the system, at the current funding levels. Recent polls of Dakota County residents show that about 2/3 would approve of an increased tax to reduce the amount of congestion. • Three years ago the Association of Minnesota. Counties formed a task .force to study transportation funding issues statewide. The result was that County Commissioners Council Work Session Minutes January 29, 2008 Page 2 from a118~ counties supported a conceptual funding package, consisting of the Highway User Tax Fund: gas tax, motor vehicle sales taxes, vehicle registration fees -money that is constitutionally dedicated only to be used on highways and bridges. Each penny of gas tax revenue represents $32 million per year. The distribution formula doesn't provide a lot of funding for the metro area. Of the County State-aid highway funds, Dakota County contributes $25 million annually, of which it gets back about $8.5 million. The distribution formula takes into account each county's needs and their ability to raise revenues based on tax capacity. A separate metro area half-cent sales tax will again be proposed with the revenue to be distributed only in the metro area for regionally significant highway projects and transit investment. The fund would be administered by a board of county commissioners, not by the state or the Met Council. The legislators see this as anon-political option with a revenue stream based on user fees that comes back to Dakota County.. Another source of funds for transportation is bonding. Mr. Krebsbach presented a list of Dakota County transportation projects that will probably not be completed due to lack of funding. Cost sharing policies were discussed. Council Member Wulff stated that the half-mile spacing prevents access to county roads as previously available. Further, the wheelage tax initiates additional fund matching, which affects local property taxes. Federal and State funding opportunities has become more competitive and more difficult. The County is hoping that most of the east-west highways that have been identified will be funded in conjunction with development, as least partly. Council Member Wulff pointed out that the property owners along those routes would be paying more for their homes, but the City isn't getting any .credit for it or break on their taxes in return. The Dakota County Transportation Plan will be updated in about two years and cost share policies will be reviewed at that time. 2. Maxfield Research Housing Study Jay Thompson and Brian Smith of Maxfield Research both worked with the Dakota County CDA two years ago on work force and senior housing needs. An additional study of Lakeville exclusively was recently completed by Maxfield. Mr. Thompson presented some demographics and market trends and rentals in senior housing units. The senior population in Lakeville is projected to triple in the next decade. Most of these people are already homeowners and would have equity that would be available for a different type of housing. Those seniors with a low to moderate income would have more of a need for aCDA-type of subsidized housing. Other housing with various levels of care services are also available to the aging population. Council Member Wulff asked what the occupancy level of the Burnsville senior apartments is. That. number was not immediately available. Over the ,next five years there will be loo adult rental units, 175 adult .ownership units, 12o congregate units, ~o • assisted living and 4o memory care units added in Lakeville. Council Work Session Minutes January 29, 2008 Page 3 • At this point, affordable housing for the work force is not an issue. Several businesses were surveyed and generally it is not difficult. for the workers to find an acceptable place to live. The most affordable housing for sale is in existing homes and townhomes, with the price criteria being $206,000. Dave Olson stated that the EDC's recommendation and the City of Lakeville's strategic plan is to try and meet Lakeville's needs for all different types of housing, not only work force and senior, but other types as well. They will try to make some .recommendations and strive for something reasonable and achievable. He outlined several work force and senior affordable housing projects that are in the process and will be completed in the next year. At the time the comp plan and zoning ordinance is updated in 2oog, there will be further discussion on what the needs are at that time .and what needs are projected. 3. Comp Plan Review Mr. Kuennen stated that City staff and NAC have conducted the second round of neighborhood planning district meetings. Five meetings were held for the 12 planning districts to provide residents, property owners and developers an opportunity to review the proposed MUSA Staging Plan, draft 203o Land Use Plan and draft 2030 Transportation Plan maps. Approximately 6o people attended these meetings and formal written comments have been received regarding 14 properties. The Planning • Commission reviewed the .summary of the Planning District meetings and written comments at a work session on 6 December 200. Mr. Licht outlined the citizen comments regarding the affected areas. The City Council had a general discussion about those properties but made no changes to the recommendations. Staff stated that NAC will .complete the draft text and finalize the MUSA Staging Plan and 203o Land Use Plan maps for a public hearing to be held by the Planning Commission in February or March 2008. The purpose of the public hearing would be to consider recommending to City Council approval of the draft .2030 Comprehensive Land Use Plan for distribution for the required six month agency. and public review period. The City Council would then formally consider .adoption of the draft 203o Comprehensive Land Use Plan at a meeting in March 2008. 4. All Saints Catholic Church Request for Tax Exempt Debt Financing Mr. Boelter stated that All Saints Church would like to request that the City act as the conduit for a bank qualified tax-exempt refinancing of existing debt which is related only to school use. The tax exempt portion of the campus consists of a school which serves. the K-8~ grade population made up primarily of residents in the Lakeville area. The school features a large cafeteria/gymnasium/auditorium with adjacent playground area. All Saints originally financed $io,5oo,0o in 1997 and 2001. They now owe approximately $5,831,000. A portion of these two notes will be subject to the tax exempt financing and taken together they are estimated to be approximately 29 % tax exempt qualified which would save All Saints a considerable amount of interest expense. Council Work Session Minutes January 2g, 2008 Page 4 Mr. Tietz stated that while it is legally necessary for the City to act as "issuer" of this • .debt, the reality is that the City bears no obligation for the repayment of the debt. That obligation rests solely with the church and that fact will be clearly defined in financing documents which will be drafted by Bond Counsel. It is the intention of the church to close on this transaction during April 2008. After some discussion, the City Council directed staff to develop a policy outlining when the City should act as an "issuer" for tax exempt debt financing. Staff will develop a policy and bring it back for Council review. 5. Park Financing Mr. Michaud stated that since 2000 there have been numerous successful referendums across the country, including. several in Minnesota, that have authorized tax increases to acquire open space and develop park. properties. Lakeville successfully passed two bond referendums: one in 19885 for $1.8 million and one in .1994 for $3.8 million. Each proposal focused on purchasing urgently needed park areas, athletic fields, trails and improvements to several existing park facilities. Park dedication fees combined with $5.6 million in bond funds have brought us to our current status. As part of the 2006 Park and Open Space System Plan update, staff prepared a draft 203o CIP plan. The 22-year plan identified system-wide needs, including identified future parks and associated facility development, and existing. infrastructure upgrades through 2030. Mr. Michaud outlined many of the proposed upgrades to the Council with areal. photos and park exhibits. Money has been budgeted in 2008 to have an in- • depth survey performed. The survey will gage the community interest and their financial threshold for which they are. willing to support funding for a park referendum. That information will then be used to help guide and create a potential park bond referendum that would be placed on the ballot this fall. City Council agreed with the park and Open Space System Plan and staffs recommendation for preserving the City's park. and natural spaces before they are lost to development. 6. Social Host Ordinance Chief Vonhof stated that under existing state statute, underage persons are prohibited from possessing or consuming alcohol. An adult who serves an underage person alcohol is criminally liable, however, as is often the case: the underage drinkers will not give the name of the adult who has supplied them with alcohol, then the police can do nothing. The proposed Host Ordinance would close that loophole. One significant area of concern has been if a parent could be held liable if their child would host an underage drinking party when they were not at the residence. The ordinance that is being proposed would not hold adults responsible for hosting a party if they are away from home and youth would hold a party at their residence without their knowledge. The City Council was in favor of the ordinance as it would help reduce underage drinking in Lakeville. Mr. Mielke stated that Chief Vonhof would present the proposed Host Ordinance before the City Council at an upcoming City Council Meeting, which would then start the public comment period. Depending on the public input, the ordinance would then be brought back for consideration of approval by the City Council. Council Work Session Minutes January 29, 2008 Page 5 ~. Chaplain Contract Review Council Member Mark Bellows recused himself from this item and left the room for the remainder of the meeting. Chief Vonhof addressed the City Council and stated that due to the growth of the Lakeville community, the need for police chaplaincy services has expanded beyond the scope of services that have been historically provided through the Lakeville volunteer. police chaplaincy program. To address this need, the Police Department is proposing to modify its current volunteer police chaplaincy program. The new program will utilize a new service model of entering into a contractual agreement with anon-profit 501 (c)3 organization. This organization will provide no- cost, secular police chaplaincy services to our citizens and public safety staff. City Council Member Mark Bellows, as the current Lakeville Police Chaplain, has previously indicated to the Chief a strong interest in continuing to serve as the Police Chaplain under.. this proposed model. The City Council asked Chief Vonhof if he supported this proposed model and if it would be awkward overseeing Council .Member Bellows in this capacity. Chief Vonhof stated that he does support his model with Council Member Bellows being they currently have the same relationship with him as police chaplain. The Council stated that they support this program and informed Chief Vonhof that. he needs to relay any issues with the Council right away. Mr. Mielke stated that the proposed contract will be shown to Council Member Bellows when he has his 50l (c)3 by-laws prepared. 8. 2008 Council Committee Assignments With Council Member Bellows absent, Mr. Mielke and the City Council discussed the 2008 Council Committee Assignments and made appointment changes of Council Members and various staff members to the boards and committees.. Council directed staff to bring forth the changes in the form of a resolution to an upcoming Council Meeting for consideration of approval. 9. 2008 Legislative Policies Review With Council Member Bellows absent, Mr. Mielke and the City Council discussed the 2008 Legislative Policies and made some minor changes to the policies. Staff will bring forth the proposed 2008 Legislative Policies at an upcoming City Council Meeting for consideration of approval. The meeting was adjourned at 8:3o p.m. Respectfully submitted, Brian J. Anderson Assistant to City Administrator