HomeMy WebLinkAbout11-02-09CITY OF LAKEVILLE COUNCIL MEETING MINUTES
Mayor Dahl called the meeting to order at 7:00 p.m. The pledge of
allegiance to the flag was given.
Present: Mayor Holly Dahl
Council Member Kerrin Swecker
Council Member Kevin Miller
Council Member Mark Bellows
Council Member Laurie Rieb
Also Present: Andrea Poehler, Assistant City Attorney
Steve Mielke, City Administrator
Tom Vonhof, Police Chief
Keith Nelson, City Engineer
Dennis Feller, Finance Director
Chris Petree, Operations Maintenance Director
Daryl Morey, Planning Director
Charlene Friedges, City Clerk
Additional agenda information None
Presentations /Introductions
Chris Petree presented the October monthly report of the
Operations Maintenance Department.
Citizens' Comments
Sheila Longie stated she owns a home and a business in Lakeville
and is concerned about the City's plan to levy franchise fees. She
stated she feels the City should be making additional reductions in
spending instead of looking for revenue enhancements.
Colleen Ratziaff- Labeau, 8356 -190th Street, stated she is not in favor
of the City's proposal to levy franchise fees. She stated she feels the
City Council should adopt a budget that does not have a tax levy
or new fees to finance the Toss of Market Value Homestead Credit.
Consent Agenda
NOVEMBER 2, 2009
09.72 Motion was made by Bellows, seconded by Miller to approve the
consent agenda items as follows:
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
NOVEMBER 2, 2009
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a. Claims for payment.
b. Minutes of the October 19, 2009 City Council meeting.
c. Performance agreements for the Lakeville Area Arts Center.
d. Accept resignation of Ann T. Huhn from the Lakeville Area Arts
Center Board.
e. Resolution No. 09 -97 authorizing the sale of Fire Department
assets.
f. Resolution No. 09 -98 approving Dakota County 2010 Large
Community Funding Application.
Authorize WSB Associates to review and provide comments
on CapX 2020 Environmental Impact Statement concerning
the Great River Energy and Xcel Energy Route Permit
Application for a transmission line.
h. Agreement with Brauer Associates for Bury property bluffs
conceptual master plan.
Temporary on -sale liquor license for Community Action
Council, Inc. for a fundraising event at the Spirit of Brandtjen
Farms on November 21, 2009.
Tree work license for Top Line Tree Service and Landscaping.
k. Tree work license for Asplundh Tree Expert Company.
Roll call was taken on the motion. Ayes, Bellows, Dahl, Swecker,
Rieb, Miller. Council Member Rieb abstained from voting on Item 6i
due to a potential conflict of interest.
Item 7 Street Reconstruction Plan and General Obligation Bonds
Mayor Dahl opened the public hearing relating to the adoption of
a street reconstruction plan entitled Interchange Financing Report
dated November 2009, and the issuance of General Obligation
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
NOVEMBER 2, 2009
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Street Reconstruction Bonds. The City Clerk attested to legal notice
publication.
Finance Director Dennis Feller explained that street reconstruction
bonds are being issued pursuant to MN Statute 475.58 to finance
the City's share of cost for the I -35 /County Road 70 interchange
improvements. In order for the City to issue obligations under this
statute, the City must conduct a public hearing and adopt a street
reconstruction plan that describes the streets to be reconstructed
and the estimated costs.
The I -35 /County Road 70 project will cost approximately $41 million.
The City's share of the cost is approximately $12,934,000. The street
reconstruction bonds in the amount of $4,925,000 will be retired over
a 20 -year period and are being repaid with property tax levies.
Interest rates are at or near the lowest levels in approximately 40
years. If the interest rate environment remains unchanged prior to
the December 7 bid opening, it is anticipated that the 2010 tax levy
will be $367,086, which would be approximately $30,000 less than
the preliminary tax levy approved in September.
There were no questions or comments.
09.73 Motion was made by Swecker, seconded by Rieb to close the
public hearing.
Voice vote was taken on the motion. Ayes, unanimous.
09.74 Motion was made by Miller, seconded by Rieb to approve
Resolution No. 09 -99 adopting a street reconstruction plan entitled
Interchange Financing Report dated November 2009 and
approving the issuance of General Obligation Bonds.
Roll call was taken on the motion. Ayes, unanimous.
Item 8 Morgan Square Third Addition
Kari Gill, representing the Dakota County Community Development
Agency (CDA), requested Council approval of the Morgan Square
3rd Addition preliminary plat and PUD amendment.
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
NOVEMBER 2, 2009
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Mr. Morey presented the planning report for Morgan Square 3rd
Addition, which consists of 36 townhome rental units on two lots
located south of 205th Street, north of 207th Street and west of
Keokuk Avenue and the Lakeville Theatre. An amendment to the
Morgan Square PUD is proposed to allow a reduced building
setback to the private drives and private drive width, consistent with
previously approved CDA projects. Mr. Morey explained that the
CDA will purchase the property from Allen Homes, but they do not
plan to develop the property for three to five years. As such, the
developer is requesting a three year extension of the preliminary
plat, allowing until November 5, 2012 for submittal of the final plat
application.
09.75 Motion was made by Swecker, seconded by Miller to approve the
Morgan Square Third Addition preliminary plat, Planned Unit
Development Amendment, and a three year extension of the
preliminary plat.
Roll call was taken on the motion. Ayes, unanimous.
Item 9 Closure of Five Public Skating Facilities
Mr. Michaud requested City Council authorization to close five of
the City's 11 public skating facilities for the 2009 -2010 winter season.
He explained that in response to a $1.4 million revenue shortfall, the
City will not open ice rinks at the following locations: Bunker Hill
Park, Cherryview Park, Highview Heights Park, Quail Meadows Park
and Rolling Oaks Park.
Mr. Michaud explained that these rinks were chosen based on
attendance and geographic distribution. Neighborhoods and
demographics have changed over the years, resulting in declining
attendance. By closing the facilities and eliminating three rental
warming house facilities, the City will save approximately $35,000.
The Parks, Recreation Natural Resources Committee did not
recommend approval of the rink closures; however, the Committee
did support the methodology in choosing which rinks to close.
Mr. Mielke explained that the decision to close skating facilities was
made last April as part of a $1.4 million reduction in the City's
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
NOVEMBER 2, 2009
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budget. There has been a general acceptance by the public of
the circumstances that the City is under.
09.76 Motion was made by Bellows, seconded by Swecker to close public
skating facilities at Bunker Hill, Cherryview, Highview Heights, Quail
Meadows and Rolling Oaks Parks for the 2009 -2010 season.
Roll call was taken on the motion. Ayes, unanimous.
Item 10 Ordinance Regulating the Sale of Tobacco Related
Products and Devices
Mr. Mielke explained that the Council had established a 60 -day
public comment period with respect to this proposed ordinance. A
majority of those responding did not support adoption of the
ordinance. The City Council reached a consensus at its October
26th work session that this ordinance should not be adopted and
instead directed the Police Department to review existing
ordinances to find an alternative way to deal with drug
paraphernalia.
09.77 Motion was made by Swecker, seconded by Rieb to adopt an
ordinance licensing and regulating the sale of tobacco related
products and devices.
Roll call was taken on the motion. Nays, unanimous. Motion failed.
Item 11 Call for Public Input on the Imposition of Franchise Fees
Mr. Feller asked the City Council to consider approval of a resolution
calling for public input on the imposition of franchise fees on gas
and electric companies. He explained that the 2010 proposed tax
levy included $630,561 for the loss of Market Value Homestead
Credit (MVHC). The objective, therefore, is to seek new and reliable
revenue sources that will provide financial stability for operations.
One such potential revenue source is franchise fees. The City has
franchise agreements with gas and electric providers operating
within the city's limits. The franchise agreements provide the terms
for which utility companies may operate in the public right of way.
As a part of the franchise agreements, the City reserves the right to
levy a franchise fee to the private utility as a way of recouping costs
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
NOVEMBER 2, 2009
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the City incurs as a result of allowing the utility to operate within the
city.
Mr. Feller explained that the implementation of a franchise fee for
the loss of MVHC would lessen the financial burden on those
properties that never received the credit initially, such as
commercial and industrial properties and high value homes, and
increases the financial responsibility to those who continue to
benefit from the credit. The franchise fee would amount to $1.28
per account per month. The tax levy for operations and debt
would remain essentially the same, and the MVHC tax levy would
be eliminated.
Mr. Feller stated that there are several cities in the Metro Area that
have imposed franchise fees. Lakeville's proposed fee of $1.28 falls
in the mid -range for residential property and is the lowest fee for
commercial /industrial property in comparison to other cities.
Council Member Swecker stated she initially supported the
franchise fee because it would ease the property tax burden on
commercial /industrial property. However, the business community
doesn't want a franchise fee. She pointed out that other Metro
Area growth cities are levying the loss of MVHC, Maple Grove at
3.6% and Eagan at 6.27 Lakeville's proposed tax levy increase is
2.9 primarily as a result of the loss of MVHC. She recommended
the City Council continue to review the proposed budget and tax
levy but not impose a franchise fee at this time.
Council Member Bellows voiced complete opposition to the
imposition of franchise fees.
Council Member Rieb stated she had initially supported the
imposition of franchise fees because it was more equitable to the
business community. However, since the business community is
opposed, she recommended not implementing franchise fees at
this time.
Council Member Miller stated the Council has only heard from the
business community. The recommendation is to allow for public
input, and the Council would be remiss in not allowing the
community at large to voice their input on this matter.
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
NOVEMBER 2, 2009
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Mr. Mielke explained that the City Council has the option at any
time to impose franchise fees. It does not have to be done as part
of the budget process. The preliminary budget was adopted in
September with a 2.9% increase in the tax levy. When the budget is
adopted in December, the Council will need to decide whether to
adopt the budget with a 2.9% tax levy increase or to offset that levy
by imposing franchise fees.
09.78 Motion was made by Swecker, seconded by Rieb to table
consideration of a resolution calling for public input on the
imposition of franchise fees.
Roll call was taken on the motion. Ayes, unanimous.
New Business None
Announcements
City Offices will be closed on November 11 in observation of
Veteran's Day
Next regular City Council meeting, November 16, 2009
Mayor Dahl adjourned the meeting at 8:22 p.m.
Respectfully submitted,
arlene Friedges, C
C
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lly D,
y Clerk