HomeMy WebLinkAbout05-24-10 WSMinutes
Lakeville City Council Work Session
May 24, 2010
In attendance: Mayor Holly Dahl
Council Member Mark Bellows
Council Member Laurie Rieb
Council Member Kerrin Swecker
Staff: Steve Mielke, City Administrator
Dennis Feller, Finance Director
Chris Petree, Operations and Maintenance Director
Keith Nelson, City Engineer
Sgt. John Kornmann, Police Department
Judi Hawkins, Deputy City Clerk
Absent: Council Member Kevin Miller
The meeting was called to order at 6:00 p.m. by Mayor Dahl.
ITEM #1 — Baldy's BBQ Liquor License Discussion
Brian Wheeler and Sony Mann submitted an application for a beer and wine license for
Baldy's BBQ in October 2009. The license was denied by City Council due to discovery of
background information which was not disclosed on the application. As part of the denial
for the beer and wine license, the applicants were informed that they must wait two years
before reapplying. Mr. Wheeler is asking the Council to reconsider as he feels that not
serving alcohol is detrimental to his business. Mayor Dahl asked if it would be possible to
consider a different type of license. Sgt. Kornmann stated that the Police Dept. has not
conducted further background checks nor received any new information, but would be
open to exploring a 3.2 beer license for Baldy's, if they were to apply. Council members
felt that 3.2 beer might be suitable to this establishment. Council Member Swecker said
she would not be comfortable with allowing Baldy's to reapply for a beer and wine license
any sooner than the agreed upon two -year waiting period.
Council members directed staff to contact the applicant to discuss the possibility of
applying for a 3.2 beer license and invite him to a future work session.
ITEM #2 — 2011 -15 Capital Improvement Program
Finance Director Dennis Feller provided a draft of the proposed CIP for 2011 -2015 for
Council's review and comment. This document is intended to serve as a financial tool, a
planning tool, and a communication tool in laying the foundation for the City's long -term
infrastructure needs. The goal was to make the document clear and easy for the general
public to comprehend.
City Council Work Session Minutes
May 24, 2010 Page -2-
Mr. Feller provided details on what he feels are the most significant projects and issues that
the City will face in the upcoming five years, as well as the economic conditions.
The four major components in the CIP are:
* Transportation: includes several roadway and intersection upgrades as well as the
Pavement Management Program;
0 Utilities: includes water and sanitary sewer maintenance projects and update of the
wellhead protection plan;
+ Parks, Recreation and Open Space: The trail system is aging and several sections are
20 to 30 years old. Trail replacement and maintenance projects have been deferred
but need to be done soon for user safety. This category also includes completion of
Stoneborough Park, trail development in several areas, and possible purchase of the
Bury property. Council may be asked if they would support a park bond referendum
to include playgrounds throughout the system, purchase of park land, and Senior
Center needs, following a community survey gauging the public's priorities. Staff is
recommending the following to address the aging trail system:
1) consult with WSB to provide a trail maintenance plan for extending the life of the
surface;
2) establish a trail maintenance fund such as the pavement management fund;
3) transfer funds from the General Fund to the Park Trail Maintenance Fund in order
to phase in a tax levy as needed.
* General Government Buildings: involves improvements and maintenance to existing
buildings and considers future needs and costs in several areas including Fire
administration, training facilities, and a study on use of the former police station by
the Senior Center and Historical Society.
Financial strategy: Staff is investigating ways to effectively utilize funding resources for the
CIP while maintaining the fiscal health of the community. Mr. Feller provided an overview
of the strategies for financing the proposed Capital Improvement projects including
r Maximize non -tax revenues such as grants, MSA funds, special assessments, user
fees, and donations;
Utilize cooperative cost sharing ventures such as construction of County roads and
the ABLE fire training center;
i% Manage debt to the extent it minimizes significant fluctuations in tax levies; and
r Manage fund balance by appropriating unencumbered balance to projects and
purposes that minimize the future tax levies.
Staff expressed concern that the State of Minnesota would seek methods to deplete City
fund balances in order to solve their own budget crisis. The staff therefore recommended
reducing the General Fund fund - balance to 40% of budget expenditures by transferring the
unencumbered balance to Capital projects. The funds transferred should be appropriated
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May 24, 2010 Page -3-
to projects which minimize future property levy impacts. As such, staff recommends
transferring $1.4 million to the Trails Management Fund, $1.1 million to the Equipment
Fund, and $300,000 to the Building Fund. Mr. Feller stated that reducing the General
Fund fund - balance below the 40% level increases the risk of a lower bond rating.
Streets and trail system maintenance projects have been deferred over the recent years; the
City needs to invest in major maintenance in order to prevent costly future repairs. The tax
levy for capital projects and debt is projected to increase by $4,000 in 2011. The tax levy
will increase $453,000 in 2012 due to the pavement management program and the
Kenrick Avenue (175` -183` Street) project. Taxes are projected to increase in 2013 -2015
primarily due to the pavement management program.
Council Member Swecker stated that it is important for the public to have input on the
proposed CIP. Mr. Feller stated that the Planning Commission will conduct a public
hearing in accordance with Minnesota statutes to determine if the CIP is in conformance
with the Comprehensive Plan. He also stated that the CIP will be adopted in conjunction
with the City operating budget.
ITEM #3 — 2011 -12 Budget Guidelines /Forecast
Mr. Feller provided Council with an overview of the challenges which will need to be
addressed as the budget is prepared for 2011 and 2012. With respect to personnel, Mr.
Mielke stated that the current labor union contracts expire on December 31, 2010. He
also indicated that the City may not have new contracts in place before the budget is
approved by the City Council. Mr. Feller stated that preliminary budget estimates indicated
a possible 1 -2% increase in the levy in order to maintain current service levels.
As was anticipated, the Legislature eliminated all of Lakeville's Market Value Homestead
Credit (MVHC) for the coming year. The expiration of Dakota County TIF District 33 will
result in a 1.7% increase in the tax base and a corresponding tax reduction for property
owners.
Staff asked for feedback and input from Council members. Further budget and tax levy
information will be presented to the Council at the July and August work sessions.
ITEM #4A — Proposed sale of City -owned Outlot
Staff has been working with the owners of two single - family homes located at 17748 and
17752 Galery Drive. The two lots were platted with the Crossroads 1" Addition plat and
are approximately 21 feet shorter in depth than the adjacent lots, which were platted with
Greenridge Addition. The homeowners have encroached approximately 21 feet into City -
owned Outlot O with sod to line up with the neighbors' rear lot lines and the respective
property is used and maintained by the two homeowners. The encroachment was brought
to the City's attention through a complaint by a neighbor. In order to resolve this issue,
City Council Work Session Minutes
May 24, 2010 Page -4-
staff would support the proposed sale of the 21 feet of City -owned property, which would
be done with an administrative subdivision process along with vacation of drainage and
uti I ity easements.
Council members concurred that the sale of the property is reasonable in this situation and
directed staff to proceed with the process for formal approval.
ITEM #413 — Enforcement of ordinance prohibiting commercial and non - commercial signs
within the right -of -way.
The placement of illegal signs in the right -of -way is an ongoing issue which increases
during the summer months and during election years. Currently Planning Department staff
completes city -wide sweeps to remove both commercial and non - commercial signs.
Removal of the signs keeps the City looking clean and uncluttered and allows street
maintenance crews to do their job efficiently. Signs which have been removed are brought
to the Central Maintenance Facility where the sign owners can pick them up. Unclaimed
signs are disposed of at the end of each month. Illegal election signs that are picked up
must be kept until 10 days after the election, per State statute. Several cities have adopted
a recovery fee to deter future violations but few enforce this option. Some cities have
designated areas for banks of signs, especially during election campaigns.
Following review of Lakeville's sign regulations as well as ordinances from neighboring
communities, staff recommends that illegally placed commercial and non commercial signs
continue to be removed from the right of way and public property and the current policy of
holding the signs for two weeks would be continued.
Council believes the most appropriate method of enforcement is to continue regular bi-
weekly sweeps, thereby staying away from "garage sale" and other temporary signs.
Council Member Bellows suggested that seasonal employees be used for this duty, as staff
is busy with other responsibilities. Council did not support charging a sign recovery fee.
ITEM #4C — Interagency Committee and Board Reports
• ALF — Board meetings will be scaled back due to much of the work being done by
Allina.
• DCC — With the resignation of Kent Therkelsen interviews were held and the
candidates have been narrowed down to three.
• Lakeville Arenas — The arenas are running very well under the direction of Shayne
Ratcliff. Council will receive the budget at the next meeting.
• Cedar Corridor Improvement Group — A second implementation study is
underway to project the ultimate build -out of transit stations through Lakeville.
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May 24, 2010
Page -5-
• DLBA — The DLBA has worked with the St. Paul Farmers Market to extend the
weekly market to Saturdays, which will be held at the LAAC. The Wednesday
market will continue to be held at the downtown Market Plaza.
• HiPP — The HiPP has held meetings with the Scott County group, SCALE, to come
up with ideas for collaborative ventures.
• Memorial Day — Council Member Bellows will attend the ceremony at the
Veterans Memorial.
ITEM #7 — Adjourn
The meeting adjourned at 7:40 pm.
Respectfully submitted,