HomeMy WebLinkAbout10-26-09 WSIn attendance:
Staff:
Minutes
Lakeville City Council Work Session
Monday, October 26, 2009
Mayor Holly Dahl
Council Member Mark Bellows
Council Member Laurie Rieb
Council Member Kerrin Swecker
Council Member Kevin Miller
Steve Mielke, City Administrator
Daryl Morey, Planning Director
Dennis Feller, Finance Director
Tom Vonhof, Police Chief
Sergeant Tim Knutson
Judi Hawkins, Deputy City Clerk
The meeting was called to order at 6:00 pm, following the presentation of a letter to Mayor
Dahl from Maria Delatorre, a foreign exchange student from Argentina.
ITEM #1 Zoning Ordinance updates review
Planning Director Daryl Morey and planning consultant Dan Licht gave a brief overview of
the progress of the Zoning Ordinance update. Numerous Planning Commission meetings
and work sessions as well as discussions by the EDC have taken place this year.
Dan Licht stated that per state statute work began in January 2009 to update the zoning
ordinance following adoption of the Comprehensive Plan in December 2008. Work has
been completed on the administrative sections and the general performance standards
which apply to all zoning districts. The next phase will address each specific zoning district
and its uses. Recent discussions by the EDC highlighted commercial and industrial building
materials. The Planning Commission discussed this issue and held an open house prior to
EDC discussions. The Planning Commission and the EDC focused on balancing economic
conditions with what is desired long term for development in Lakeville. The Planning
Commission recommended changes to both the commercial and industrial standards; the
EDC supported the changes to the commercial standards but preferred to see no changes
in the current industrial standards. The Planning Commission will receive input from the
EDC and review their comments at the November work session. A joint meeting to discuss
the various perspectives has been suggested.
Language is being recommended in the sign ordinance to limit use of electronic signs to the
City and the School Districts. The 30 -foot maximum height allowance for freeway corridor
signs was also discussed as well as how to accommodate properties with elevations lower
than the interstate. The recommended language would allow the sign height to vary up to
a maximum of 70 feet, depending on the elevation of the site.
City Council Work Session Minutes
October 26, 2009 Page 2-
Lighting design standards and requirements for shielding lighting from outdoor recreational
facilities in city parks were discussed. The Planning Commission did not recommend
specific planning requirements but left it up to the city and school district to address when
designing recreational facilities. Minor adjustments are being recommended to transitional
landscaping requirements between commercial and residential areas and to parking lot
landscaping adjacent to major roadways.
Other Planning Commission recommendations will include: additional criteria to assist in the
evaluation of CUP applications for accessory buildings; continued protection of drainage
and utility easements; and administrative processing of future home occupation permit
applications.
Another open house will follow the completion of the update next spring, followed by a
formal public hearing by the Planning Commission. It will then move forward to the City
Council and the Metropolitan Council.
ITEM #2 Tobacco related device ordinance discussion
Police Chief Tom Vonhof and Sergeant Tim Knutson were present to answer Council's
questions regarding the proposed ordinance requiring a buyers' log to be maintained by
stores selling items which could be considered drug paraphernalia. Of the public
statements received during the 60 -day comment period, 75% were opposed to requiring
the log on the premise that it violated their rights. Most of the items in question are
already secured behind the counter or under glass. Enforcement is estimated at 10 -20
hours each month.
City Council expressed that they would like to separate the paraphernalia ordinance from
the tobacco ordinance and review and update each of them individually. Council does not
wish to pursue this proposed ordinance and directed staff to put it on the consent agenda
for final action.
ITEM #3 2010 Proposed Budget
City staff has held several informational meetings with the Chamber's Government Affairs
Committee budget task force. Steve Mielke distributed a policy position document which
the task force had drafted stating their point of view on key issues in the City's budget.
The Chamber Board has not formally adopted the document.
Finance Director Dennis Feller outlined four different elements of the budget to be
discussed:
A) Budget adjustments subsequent to approval of preliminary budget; B) Budget Issues
responses to questions; C) Franchise fees; and D) Utility Fund Budget 2010 proposed
rates.
A) Budget adjustments. The General Fund revenue equals expenditures as a result of the
DCC asset distribution.
City Council Work Session Minutes
October 26, 2009 Page -3-
B) Responses to questions regarding budget issues:
General Fund:
Cost of living adjustment the only increase in compensation will be scheduled step
increases; each 1% increase in COLA would result in an expenditure of $137,000.
Early retirements there are no incentives proposed at the current time.
Council retreat /goal setting workshop $5,330 is budgeted from the General Fund.
Council members wished to eliminate the retreat until after the 2010 election.
Community survey $20,000 is budgeted from Cable franchise revenues. Council
suggested a spring survey would provide an accurate indication of how residents react
to the cuts.
Building Inspections: Staff has been cut by 50 Based on anticipated permits staff
will make approximately 17,000 inspections in 2010. Inspectors also spend time
resolving weed, long grass, and other health concerns and cleanup problems of
foreclosed and abandoned homes. Only a small percentage of the costs are recovered
through special assessments.
Planning and Community Economic Development staff has been reduced by 40
Further cuts would result in needing to hire contractual help, which would be more
costly.
Animal Control Historically, contracted services were costly and ineffective. Council
members suggested contracting out Lakeville's services to adjoining cities, or exploring
the possibility of a HiPP project.
Fire Department Management of staff and 90 volunteer firefighters at four different
stations warrants a full -time chief.
Streets There is $1.2 M in the 2010 budget for pavement management. Funds
allocated for seal coating in 2009 were set aside for 2010.
Forestry The City Forester spends approximately 1,000 hours each year working with
residents on tree issues. His remaining hours are budgeted to park maintenance.
Contracting the forestry position would not be cost effective.
Recreational programs City and school districts do not offer competing programs.
Costs for Parks and Recreation brochures are paid by advertising.
Youth sports participation fees A fee of $5.00 per participant per sport will be
proposed in the fee schedule resolution; the current voluntary amount is $2.50 per
athlete. Several youth sports organizations have contributed to park and field
improvement projects.
Funding sources for the Arts Center Establishment of an Arts Center foundation has
been discussed; interest on investments would be a revenue source. Council members
suggested a future community foundation which would allow each donor to specify
their recipient.
City Council Work Session Minutes
October 26, 2009 Page -4-
Fund balance Used for City operations for the first six months of the year prior to
receipt of state funds in July; lowers the risk of compromising the favorable AA bond
rating; and cash on hand for unanticipated events.
Other possible items to eliminate from the budget: Telecommunications Commission
($3,943) and Parks Department seal coating of parking lots and trails ($83,891).
Capital Projects Funds:
Former police station building Council prefers to sell or lease to ISD 194 or another
school system. However, if the school district determines this is not feasible, other
options include use as a senior center /historical society building, selling, or leasing on
the open market.
Building Fund: Energy efficiency improvements are needed to City Hall, as well as a
new roof. Several other improvement projects are also needed to maintain city
buildings.
Taxes:
The Finance Director provided information comparing the City of Lakeville's tax levy to
other Dakota County cities. Lakeville has one of the lowest tax levies in the state.
Franchise Fees:
Several possible budget and service adjustment scenarios were calculated with
franchise fees budgeted into the general fund. Various fee structures compared options
and the proposed process for implementing franchise fees as a revenue source. The
Finance Director stressed the importance of making the determination prior to adopting
the budget. A public hearing would be required.
Council Member Bellows stated that the budget is $82,000 away from not needing to
implement the franchise fees. He believes franchise fees would be unpopular with
Chamber members and residents. Mayor Dahl believes that residents expect services to
continue, even if there are additional costs.
Schedule of Fees:
Building permits: Lakeville's permit fees are the lowest in Dakota County. Revenues
produced from the current fee schedule do not adequately cover the City's costs. It is
the Council's philosophy that development should pay for itself.
Liquor Fund: ISD 194's chemical prevention coordinator is paid from the Liquor Fund
($18,000). Council Member Bellows questioned the relevancy of educational programs
in the City's budget, and why similar funds are not provided for ISD 196 and 192.
Council Member Swecker asked for an accounting of the success of the program. City
Administrator Mielke will discuss this issue with the school district and inform them of
the Council's concerns.
Sanitary Sewer Fund: Finance Director recommends purchase vs. lease of a sewer vac.
Per capita spending and per capita staffing: In both areas Lakeville is extremely low
due to conservative fiscal policies. Lakeville's utility rates and taxes are also low.
City Council Work Session Minutes
October 26, 2009 Page -5-
In response to a question from Council members, Community and Economic Dev. staff
prepared a list of businesses which have moved out of the City of Lakeville for various
reasons. Council member Swecker asked to have the list expanded to include retail.
C) Franchise Fees:
Mr. Feller stated that if the Council chose to implement franchise fees, they could set
the rate and determine where the fees would be appropriated, either the General Fund
or something more specific. Council Member Bellows expressed his opposition to
franchise fees. Mr. Feller provided clarification and comparisons of how the franchise
fees vs. a tax levy would affect commercial and residential properties. A franchise fee
would cost homeowners approximately $12 per year; if the Market Value Homestead
Credit was replaced with a tax levy rather than a franchise fee, a $200,000 home would
pay an additional $20 per year. Franchise fees are a consistent revenue source and are
equitable since they would be applied to properties that actually received a reduction in
their taxes through the Market Value Homestead Credit. Replacement of the tax levy
with the franchise fee is also a financial benefit to higher valued homes and businesses
which do not receive a reduction in their taxes through Market Value Homestead Credit.
Mr. Mielke stated that any change in the franchise fee rates would require a public
hearing. Miller felt that if the minimum rate of $.17 was imposed, the effort would
hardly be worthwhile. Bellows pointed out that many other fees are also being
increased at this time. Rieb would like to see the City move forward with the franchise
fees at the higher rate and put the $630,000 revenue toward the loss of the MVHC to
be used for streets. Swecker feels the franchise fee is the most equitable and would
also like to use the higher rate of $1.28 and appropriate it to the General Fund.
The draft of the policy position from the Chamber Government Affairs Committee stated
they would choose the tax levy over the franchise fee, even though it would cost
businesses more, but they would prefer neither. Bob Vogel, speaking on behalf of the
Chamber, said the franchise fee is considered a new tax and they are afraid of future
increases. They expressed their appreciation for the time that City staff has spent
meeting with chamber members about the budget, but believe everyone feels the down
economy and must live within their means. The policy statement has been approved
by the Executive Committee, but not by the Chamber Board of Directors. Mayor Dahl
asked if State Representatives have also been approached, since the state receives the
largest share of taxes and is most responsible for what has happened with the City's
budget, by unalloting the MVHC. Mr. Mielke feels there has been positive dialog with
the business community and understands and respects their position; however he
believes that the residents deserve to be heard regarding what services are most
important to them.
Chamber /EDC member Sheila Longie said the task force felt they were representing
both the businesses and the residents, and had attempted to come up with solutions
for the City to consider.
Council Members directed staff to prepare an agenda item calling for a public hearing
regarding the implementation of franchise fees. To make up for the loss of MVHC,
$630,000, a franchise fee of roughly $1.28 per meter per month would allow for a
balanced budget. At the November work session Council will discuss further options for
City Council Work Session Minutes
October 26, 2009 Page -6-
finding the remaining $82,000. Discussions have begun with the Unions on possible
accommodations. Staff will make sure that information for the public is available on the
City's website.
D) Utility Fund:
Staff reviewed CIP expenditures and major maintenance projects. Staff recommends
that sanitary sewer rates be adjusted upward to compensate for the maintenance
projects and the increase of 6.9% in the Metropolitan Council Environmental Services
charges. They are further recommending that the water rates be decreased by a
corresponding amount to offset the sanitary sewer increases. Street lighting electricity
rates are expected to increase 10 There are no changes proposed to Utility Dept.
personnel levels.
ITEM #4 Other business.
Mr. Mielke updated Council members on the ISD 194 Aquatics Facility Task Force. They
are in the process of analyzing options and are expecting to bring a report forward to the
school board by the end of the year.
Council members were asked if they would prefer to formally receive minutes of advisory
committee meetings with their Council packets, or receive them electronically with their
weekly Update. All council members thought it was a positive paper- saving effort and
would agree to the minutes being sent electronically on a weekly basis.
ITEM #5 Adjourn.
The meeting was adjourned at 9:25 p.m.
Respectfully submitted,
awkins
Clerk