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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 Page 2 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 Page 3 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 Page 4 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 Page 5 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 Page 6 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 Page 7 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 st lly D, y Clerk