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Lakeville City Council Work Session
July 26, 2010
In attendance: Mayor Holly Dahl
Council Member Mark Bellows
Council Member Laurie Rieb
Council Member Kerrin Swecker
Council Member Kevin Miller
Staff: Steve Mielke, City Administrator
Dennis Feller, Finance Director
Dave Olson, Community and Economic Development Director
Keith Nelson, City Engineer
Tom Vonhof, Police Chief
Sgt. John Kornmann
Judi Hawkins, Deputy City Clerk
The meeting was called to order at 6:00 pm.
ITEM #1 — Cedar Avenue BRT Construction and Implementation Plan Update
Community and Economic Development Director Dave Olson introduced staff from Dakota
County Transportation: Mark Krebsbach, Sam O'Connell, and Todd Howard. Dakota
County staff has attended the work session to provide an update on the Cedar Avenue BRT
construction and implementation plan and to ask Council for final plan approval.
Mr. Howard stated that the planning phase of the Cedar Avenue BRT project is
approximately 98% complete and is projected to be awarded in November. Dakota Electric
will begin relocating their electric lines underground in September which is expected to take
about six weeks. More than half of the necessary right of way has been acquired. The
engineer's estimate of $49 million has remained consistent since the beginning of the
project. The project is being funded by several sources — federal, state and local. Apple
Valley has received a Federal Enhancement Grant, which will pay for trail lighting.
In response to Council Member Swecker, Mr. Howard stated that Cedar Avenue will remain
open to traffic through the winter. During construction the county plans to maintain two
lanes of traffic in each direction as much as possible north of 153` Street and one lane of
traffic in each direction south of 153` Street. Awarding the project in November will allow
time to fabricate block for the retaining wall and prepare for other construction components
for next spring. The Lakeville portion of the project is expected to be complete by 2011 and
the Apple Valley portion by 2012. County Engineer Mark Krebsbach added that there will
be some latitude in the bid for the contractor to remain flexible in implementing project
enhancements.
City Council Work Session Minutes
July 26, 2010 Page -2-
Sam O'Connell presented the Implementation Plan update and gave a detailed overview of
the revisions that have been made to the original plan that was drafted in 2004. The UPA
and Comprehensive Plans have helped to project needs and direct the plan to where it is
now. It is anticipated that several items will fluctuate before the transit stations are
operational; however, several major considerations were given to the functionality of the
facilities. Ridership projections are based on a model but are difficult to accurately forecast
as are the future needs of the residential and business communities in the BRT corridor.
Stakeholders have expressed they want transit services that are fast, easy, and reliable. Two
walk -up station locations have been added to the plans at 161 Street and Glacier Way to
serve the local neighborhoods and businesses.
At the completion of the project in 2012, provided there is adequate ridership, there will be
a direct connection from Lakeville into downtown Minneapolis. There will be many BRT
special service potentials other than commuting to work, such as trips to special events,
shopping, and Target Field. Council members asked about an east -west transportation plan
that would move riders from the 35W station to Apple Valley then to downtown St. Paul. a
The 30 -day comment period for the Regional Railroad Authority will end on August 13` and
if they feel comfortable may adopt this plan on August 24` A final document with then be
available by September 1 51 for adoption by Lakeville City Council. The plan will then be
forwarded to the State and the Federal offices for their final review and approval. This item
will be placed on an upcoming Council agenda for formal approval.
ITEM #2 — Business Assistance Policy
Dave Olson introduced EDC members Jack Matasosky, Sheila Longie and Gary Tushie. At
the April 27, 2010 Economic Development Commission meeting an update to the 2003
business subsidy policy was discussed and a recommendation was made to bring a revised
policy to City Council for consideration. A revised policy would establish criteria and give
staff direction to answer inquiries regarding the availability of assistance for businesses that
are considering locating in Lakeville. The draft policy recommended by the EDC includes a
provision referred to as the "but for" which indicates that the project would not be possible
without assistance from the City.
The EDC is recommending seven criteria need to be met by the business to qualify for
assistance:
1. Creation of new jobs in the community with a minimum wage equal to that of
programs administered by MnDEED.
2. Provide value in the form of needed transportation or utility infrastructure.
3. Redevelopment projects that stabilize or improve neighborhoods.
4. Projects that increase the economic diversity in business and industry.
5. Enhance the quality of life for Lakeville residents.
6. Retention of existing jobs, such as expansion of an existing business.
7. Projects that address a community need or provide a public benefit.
City Council Work Session Minutes
July 26, 2010 Page -3-
State statutes require that a policy be adopted. Administering the subsidy program requires
public hearings and other provisions. Two of the most common subsidy tools are Tax
Increment Financing (TIF) and tax abatement however there are no current policies in place
for these specifically. Council has also adopted a policy on private activity bond issuance
when Highview Hills was being built. At Council's direction, this will be placed on a future
agenda to be followed by further discussions on the strategic planning process.
Commissioner Matasosky believes the most important aspect of the policy is to give City staff
a "toolbox" of options and opportunities to share with existing and new businesses and to
keep Lakeville competitive with outstate and out of state businesses. He would like to see
an ROI study to forecast how the potential assistance would impact the community.
Commissioner Longie stated that her focus would be on retention of existing businesses,
especially those that are currently financially insecure due to the economic downturn.
Commissioner Tushie recalled discussions of 20 years ago regarding how to best help the
city to progress and at that time the need was for upscale housing for the owners and top
executives of the businesses. As the times have changed, surrounding communities are
more built out and Lakeville still has a lot of undeveloped land that can provide a tool for
the city to grow. Infrastructure is a major component of growth and needs to be considered.
Steve Mielke stated that not all assistance is of a financial nature. This policy will give staff
the opportunity and the guidelines to have a conversation with potential Lakeville businesses
to determine if some assistance could affect their decision of where to locate. The question
should not only be What can the City do for the business, but also What can the business do
for the community.
In response to Council's questions, the EDC would like to maintain flexibility and try to
distinguish Lakeville from other communities and capitalize on the City's amenities.
ITEM #3 — Service Prioritization Discussion
At their March work session Council discussed various tools that would help in the budget
decision making process. One of the tools is the recently completed community survey,
another is the two -year budget, and other is to prioritize various city services. This model
started in Jefferson County, Colorado several years ago to assist with fiscal management. The
City of St. Cloud has used this model to apply standards to provide an objective outcome to
the budget and has promoted it at the League of Minnesota Cities Conference.
The prioritization method breaks services into two components - internal (organization) and
external (public services). Staff has identified and established eight criteria for the external
services. Each of those eight categories was given a numerical ranking; they were then
sorted in order of highest to lowest priority based on the number of points. The eight
categories were:
City Council Work Session Minutes
July 26, 2010
Page -4-
1) Mandatory vs. non - mandatory. State or Federal mandates were given 100 points;
City ordinances were given 50 point; if not mandated it received zero points.
2) Sustained. It's ability to pay for itself through user fees (other than taxes)
3) Multi -modal transportation.
4) Active lifestyles and community livability.
5) Community development and revitalization.
6) Environmental protection.
7) Safe communities (associated with public safety).
8) Fiscal responsibility.
Staff ranked categories 3 through 8 on a scale of 1 to 10 and submitted their survey
response. The City Council was also asked to prioritize those same service elements in
order of importance. Results of the rankings given by staff and Council were provided. Mr.
Feller stated that on its own, this does not have great value, but when combined with other
practices it can help establish budget priorities and becomes a tool in the decision making
process.
Another element in the process is fiscal responsibility. Council's ability to use their good
judgment and sound fiscal management also plays a role in determining appropriate
funding. Prioritization does not dictate that the most funding be allocated to the highest
ranked services. Many factors need to be taken into consideration. Preparation of a two -
year budget will begin at the August work session.
ITEM #4 — Gun Range Relocation Proposal and Cleanup
Police Chief Tom Vonhof and Sgt. John Kornmann presented a historical perspective of the
gun range at the Airlake Airport. In 1989 the Metropolitan Airports Commission (MAC)
agreed to allow the Lakeville Police Department to use an abandoned gravel pit on their
property as a gun range. Due to the future extension of the Airport runway and the
relocation of Cedar Avenue, the range is no longer available and will need to be cleaned up
in accordance with FAA rules. The consultant has estimated that 10 to 15 truckloads of dirt
will need to be removed to mitigate the site. This is not hazardous waste. The Dakota
County Sheriff's Department has also used the range over the years and may have some
funding available to assist with the mitigation and cleanup. The LPD is currently utilizing a
shooting in Scott County. This is expensive due to increased overtime and travel costs.
The Police Department has looked at several different sites to relocate the gun range. Their
recommendation is that any future gun range is located on City -owned property to add the
elements of sustainability and self - regulation. Challenges of an indoor climate - controlled
location at the police station are air quality and cost of insurance. Two possible outdoor
sites are the former public works site in Airlake and an area near the entrance of Ritter Farm
Park. Staff is exploring the possibility of a consortium with Dakota County and the City of
Farmington, since they are also dealing with the challenge of limited gun range options.
Estimated costs and pros and cons of the various options were presented to the Council.
City Council Work Session Minutes
July 26, 2010
Page -5-
Staff will continue to keep Council apprised as the cleanup and relocation of the gun range
progresses.
ITEM #5 — Other.
a. Fire Shared Services Update
The administrators and fire chiefs of the cities of Apple Valley, Burnsville, Farmington
and Lakeville are continuing to meet and are exploring two possible consultants. One
is a division of the International City Managers Association (ICMA) which specializes in
collaborations; and the other is the Fire Chiefs Association which also has a division
that studies shared services. The Governor's Task Force will allocate matching grant
funding when they have completed their study and this group hopes to qualify. A
consultant will inventory what each city could contribute to shared services such as
training, public education and equipment sharing.
b. Interagency Committee and Board Reports
• DCC — The Executive Director search has been suspended since a majority of the
board did not agree on a candidate. The search will be reopened in six months.
• 1 -35 Solutions Alliance — Working on recommendations for long -term planning.
• MLC — Currently interviewing five cities that could possibly be added to the group.
• DLBA — Merchants were reminded that they may not serve wine on Ladies Night.
• HiPP — A consultant will be retained to assist in reinvigorating the program.
ITEM #6 — Adjourn
The meeting adjourned at 8:20 p.m.
Respectfully submitted,