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HomeMy WebLinkAbout09-28-09 WSIn attendance: Staff: Mayor Holly Dahl Council Member Mark Bellows Council Member Laurie Rieb Council Member Kerrin Swecker Council Member Kevin Miller The meeting was called to order at 6:00 pm. Minutes Lakeville City Council Work Session September 28, 2009 Steve Mielke, City Administrator Dave Olson, Community and Economic Development Director Steve Michaud, Parks and Recreation Director Dennis Feller, Finance Director Judi Hawkins, Deputy City Clerk ITEM #1 DEED application for the Genesis Poly Recycling Project Community and Economic Development Director Dave Olson provided background information on Genesis Poly Recycling, a company that is interested in leasing a currently vacant building at 9150 217` Street, in First Industrial Park near Uponor. The company recycles poly agricultural and landscape products into a pellet or flake form, which can then be used by manufacturers of other poly products. The company formerly operated in Savage under the name AGSI, but its private funding source was eliminated. Staff has been working with the Minnesota Department of Employment and Economic Development (DEED), the US Department of Agriculture, the Minnesota Pollution Control Agency and US Bank to assist this business with securing the funding which would allow them to locate their business in Lakeville. DEED has reviewed the project and has determined that it meets the criteria for a $500,000 low interest loan. As part of the guidelines for the loan, the business must create at least 35 jobs which pay a minimum of $13 per hour, but they foresee an additional 100 jobs will be created over the next five years. The Minnesota Investment Fund (MIF) would provide the low interest loan through a grant/loan to the City of Lakeville, which in turn would loan the funds to the business, making the City the conduit for the funding from the State of Minnesota to the business. The benefit of the City of Lakeville's involvement would be the City's retention of 20% of the loan repayments up to $100,000 to be used in an economic development revolving loan fund for future economic development projects. The startup cost for Genesis Poly Recycling is estimated to be approximately $12 million; DEED will not consider this loan application until the remainder of the funding has been secured. City Council Work Session Minutes September 28, 2009 Page -2- The Economic Development Commission reviewed the project at their August 25 meeting. Council members asked about the City's future financial liability if the business defaults on its loan. Mr. Olson stated that the City will attempt to get security in the form of corporate or personal guarantees. Approval of this agreement will require a Public Hearing, a grant submission agreement, and a loan agreement. Council Member Kevin Miller stated that because of his professional position with US Banks, he intends to recuse himself. Council directed staff to continue to provide information as it becomes available and to prepare the item for consideration at the second regular meeting in October. ITEM #2 Street sign replacement Director of Operations and Maintenance Chris Petree and Street Superintendent Troy Grossman presented the Federal Highway Administration (FHWA) revisions to the Manual on Uniform Traffic Control Devices (MUTCD), effective January 22, 2008. The new standards mandate minimum sign retroreflectivity, the amount of Tight that is returned, on traffic and street signs in order to increase visibility and safety. In accordance with the mandate, the City of Lakeville must adopt a plan for sign replacement within four years, or by January 2012. The plan will include a city -wide evaluation of the sign inventory and inspection to determine time lines for sign replacement. Inventory will be conducted with an existing software program, SignView, and a handheld GPS. The actual replacement plan for the City's 7 -8,000 signs will begin in 2012. The life expectancy of the current signs is eight to 10 years. The flat sheeting that is now used will not be allowed after 2015. The prismatic retroreflectivity called diamond grade is more expensive but will improve the life of the sign to 15 -17 years. If the metal is in good condition signs can be re- sheeted with the new materials, and if they are damaged they can be sold as scrap metal, which will help to off -set the cost of new signs. Also as part of the sign replacement program, staff is recommending that beginning in 2010 the current round sign post system be replaced with a uniform square -style galvanized post which would be more aesthetic and less costly to replace when damaged. Council members were shown several possible new street sign designs which include the City logo. Staff believes the presence of a logo identifies the community and assists with navigation. The Police and Fire Departments have expressed their support for the logo. Council members had concerns about additional costs it would incur. City Council directed staff to: 1) proceed with formulating a plan to comply with Federal mandates for sign retroreflectivity; 2) begin the transition to the recommended square sign post system; and City Council Work Session Minutes September 28, 2009 Page -3- 3) re -visit the issue of including an uncolored logo on the street name signs when the bids have been received for replacing existing signs in the spring. ITEM #3 Bury property acquisition update Parks and Recreation Director Steve Michaud gave a brief history of the City's efforts over the last 20 years to purchase the 65 -acre Bury property on the southwest shore of Lake Marion, east of Kenrick Avenue and north of Casperson Park. Staff has met with the Bury family or their representatives on numerous occasions and has recently submitted Federal, State and County grant applications to assist with funding. The property has been over mined and would need substantial fill to bring it to a usable grade. This has decreased the value of the property. A major underground high pressure gas pipeline divides the property. Recreational land uses may be more feasible and cost effective than residential development. The City has received an updated Letter of Intent to sell the property and a draft purchase agreement. If adequate grants were awarded, there could be an outright purchase of the property. If grant applications are not successful, staff is asking City Council to consider trading existing unused City -owned property to the Bury's in lieu of money. Council directed staff to begin formulating proposals, which could include the possibility of a land trade. ITEM #4 Review of ice rink reduction recommendations In light of hockey and pleasure skating budget reductions, Parks and Recreation Director Steve Michaud presented proposed recommendations for closing five rinks, while keeping six sites open. The rinks that are being recommended to remain open are geographically spread throughout the city and will have to absorb the skating needs of the closed rinks. The Highview Heights and Parkview rinks have accommodated the VAA and RAAA since many youth who play hockey in those organizations are Lakeville residents. Council Member Miller asked if the Dakota Heights skating rink could be expanded, but was informed it is at its maximum. Council Member Bellows commented that very mature rink attendants will be needed to deal with possible over crowding issues. He also feels there is a possibility of increased vandalism if kids don't have anywhere in their own neighborhood to skate. Steve Michaud anticipates opposition by the residents where the rinks are closing. He also is asking for direction in the event that one or more of the hockey associations are willing to sponsor a rink in its entirety. He estimates the cost at $5,000 per rink, which does not include overtime, fuel, or equipment. A joint powers agreement with ISD 192 states that the City "intends" to provide skating facilities at Quail Meadows Park but the )PA does not require the City to do so. City Council Work Session Minutes September 28, 2009 Page -4- Council directed staff to present the information regarding rink reduction to the Parks, Recreation and Natural Resources for their recommendation to City Council. ITEM #5 Franchise fees in 2010 The 2010 preliminary budget includes revenues from a new franchise fee on utilities. If franchise fees are not approved, there will be an additional $262,000 for which budget adjustments would need to be made. If franchise fees are approved, Council could consider using the revenue for the general fund for operations, or something tangible, i.e., pavement management, or to finance the loss of Market Value Homestead Credit. Options for collection of franchise fees would be either a flat fee where all users pay the same amount, or a graduated rate. The Finance Director presented a chart illustrating various scenarios for MVHC and how the franchise fee could be used to bring greater equity to the State taxing system. Commercial properties are currently paying an increased share of the tax base, which is punitive to economic development. A franchise fee of $1.28 per month per utility would cost each property owner $31.00 per year. If the tax levy could be reduced by an amount equal to projected revenues from franchise fees, the result would be more equitable commercial and residential property taxes. Council Member Bellows feels he cannot support franchise fees because he feels people are already too strapped for money and it will be difficult for them to understand the concept of making it more equitable. Council Member Miller stated that there will be people on both sides of the fence those who don't want to pay additional taxes, and those who don't want to give up City services. Council Member Swecker feels that residents are not willing to give up services to which they have become accustomed, and sees franchise fees as a creative revenue source. She would also expect to see some resistance. Mayor Dahl feels that businesses realize the State's budget shortfall drives this increase. Steve Mielke and Dennis Feller will be meeting to discuss this with the Chamber of Commerce Government Affairs Committee later this week. Council members would like to meet in groups of two for budget question and answer sessions. ITEM #6 Interagency Committee and Board Reports Cedar Corridor Improvement Group Steve Mielke mentioned that following the work session last week, the County Board authorized the 60% plan design and moving into the final plan development. He will continue to discuss trail lighting as part of the plan. There were over 150 transit riders on the opening day of the new 1 -35 station. Aquatics Facility Needs Task Force Steve Mielke provided an update on the ISD #194 Aquatics Facilities Needs Task Force. City Council Work Session Minutes September 28, 2009 Page -S- A discussion was held regarding an invitation Mayor Dahl had received to participate in a Mayoral Challenge fund raiser golf tournament. The sponsor had offered to donate the entry fee; however, the mayor was uncomfortable accepting the donation and so has decided to decline. ITEM #7 Adjourn The meeting adjourned at 8:05 pm. Respectfully submitted,