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HomeMy WebLinkAbout09-07-10CITY OF LAKEVILLE COUNCIL MEETING MINUTES SEPTEMBER 7, 2010 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 Mark Bellows Council Member Kerrin Swecker Council Member Laurie Rieb Council Member Kevin Miller Also Present: Elliott Knetsch, City Attorney Steve Mielke, City Administrator Tom Vonhof, Police Chief Keith Nelson, City Engineer Dennis Feller, Finance Director David Olson, C.E.D. Director Steve Michaud, Parks & Recreation Director Chris Petree, Operations & Maintenance Director Daryl Morey, Planning Director Charlene Friedges, City Clerk Mayor Dahl called for a moment of silence in honor of Sergeant Brigham Strole, who passed away tragically last week in a motorcycle accident. Chief Vonhof paid tribute to Sergeant Strole, recognizing his contributions to the community and Police Department. Additional Agenda Information —Mr. Mielke provided a signed Stipulation of Facts and Civil Sanction for consent agenda Item 6i. Presentations /Introductions: Council Member Rieb read the Proclamation for Constitution Week. Ted Billy and Doreen Machin, representing the Lakeville Senior Citizens Organization, asked the City Council to proclaim September as Senior Center Month. Council Member Miller read the proclamation. Chief Vonhof introduced retired Police Officer Jimmy Jensen, the oldest living retired Lakeville police officer. Chief Vonhof asked the City Council to adopt a proclamation naming Jimmy Jensen Honorary Police Officer for a Day. Allowing Jimmy Jensen the opportunity to be honorary police CITY OF LAKEVILLE COUNCIL MEETING SEPTEMBER 7, 2010 Page 2 officer will bestow on him a unique career distinction to have worked in all five police stations in Lakeville. Council Member Bellows read the proclamation. Arts Center Coordinator Tom Barnard presented the 2010 -2011 Lakeville Area Arts Center Playbill. Chief Mike Meyer presented the Fire Departmentl St and 2nd quarter report for 2010. Chris Petree presented the August monthly report of the Operations & Maintenance Department. Citizens' Comments Colleen Ratzlaff LaBeau, 8356 -190th Street, addressed the City Council, on behalf of the business community, regarding the 2011 budget and tax levy. She asked the City Council to consider tabling action on Item 9 and taking more time to review the budget document before adopting the 2011 preliminary tax levy. Consent Agenda Council Member Swecker abstained from voting on Items 6e and 6g. 10.50 Motion was made by Miller, seconded by Rieb to approve the consent agenda items as follows: a. Claims for payment. b. Minutes of the August 16, 2010 City Council meeting and the August 23, 2010 Council work session. C. Agreement with Quality Flow Systems, Inc. for Lift Station 4 rehabilitation. d. Resolution No. 10 -58 calling public hearing on the certification of delinquent utility accounts. e. Receive application of Apple Minnesota LLC for an on -sale and Sunday liquor license at Applebee's Neighborhood Grill & Bar, 18404 Kenrick Avenue, and call a public hearing to be held on October 4, 2010. CITY OF LAKEVILLE COUNCIL MEETING SEPTEMBER 7, 2010 Page 3 f. Cost -Share Application, Contract and Operations and Maintenance Plan with Dakota County Soil and Water Conservaton District to install rock crib stormwater retrofit. g. Resolution No. 10 -59 accepting donations for Night to Unite and Safety Camp. h. One -year extension of a building setback variance for Performance Office Papers. Stipulation of Facts and Civil Sanction with Holiday Stationstore #504. Roll call was taken on the motion. Ayes, unanimous. Item 7 - Quail Ridge Third Addition 10.51 Motion was made by Swecker, seconded by Miller to table consideration of the preliminary and final plat of Quail Ridge Third Addition until the September 20, 2010 City Council meeting. Roll call was taken on the motion. Ayes, unanimous. Item 8 - Capital Improvement Plan 2011 - 2015 Finance Director Dennis Feller provided an overview of the 2011-2015 Capital Improvement Plan (CIP). (The City of Lakeville Capital Improvement Plan dated September 2010 is on file in the City Clerk's office.) He explained that the CIP is a flexible, five -year plan that identifies the City's infrastructure, development objectives and allocation of financial resources. It provides policy makers and the community with a strategic, documented approach to implementation and administration of improvement projects. Mr. Feller stated the City of Lakeville Capital Improvement Plan maximizes the use of non -tax revenues to finance improvements. Municipal State Aid Street Funds, connection charges, special assessments and other revenue sources are vital elements to financing city improvements. The use of these revenue sources reduces the reliance on property taxes. CITY OF LAKEVILLE COUNCIL MEETING SEPTEMBER 7, 2010 Page 4 Council Member Bellows questioned the viability of purchasing land at County Road 70 and 1 -35 for the future construction of a liquor store. Mr. Mielke explained that the staff has proposed a long term business plan, which suggests that as the City grows, and assuming it remains in the municipal liquor business, additional retail outlets will need to be explored. However, the timing and funding source has not been determined. A market analysis has been conducted, and staff will report back to the Council after it has reviewed the results. Council Member Bellows asked if there has been any interest expressed by developers or potential retailers for the Kenrick Avenue extension and expressed concern for adding commercial properties at this time. Mr. Mielke explained that the Kenrick Avenue extension will promote economic development and provide a critical transportation link between the SouthFork and Timbercrest commercial districts. The land owner has expressed interest and believes there will be a market for commercial development in this area by 2012 or 2013. Additionally, surrounding property owners have expressed support as the roadway would increase traffic in the area. Mr. Feller explained that the CIP serves as a guide; and the City Council is not committed financially to any project identified in the CIP until that project is approved. 10.52 Motion was made by Swecker, seconded by Miller to approve Resolution No. 10 -60 adopting the Capital Improvement Plan 2011 - 2015. Roll call was taken on the motion. Ayes, unanimous. Item 9 - City of Lakeville 2011 Budget Mr. Feller presented the proposed 2011-2012 Budget and Tax Levy. (The 2011 Proposed Budget and 2012 Estimated Budget document is on file in the City Clerk's office.) Mr. Feller explained that the information gathered in the residential and business surveys conducted by Decision Resources has been used to develop the proposed budget and tax levy. The surveys found high levels of satisfaction with the quality of the services provided by the City. The CITY OF LAKEVILLE COUNCIL MEETING SEPTEMBER 7, 2010 Page 5 survey found that the majority of residents oppose service cuts, even if it would reduce their current City property taxes. A plurality of businesses supported a reduction in taxes even if there was a reduction in services. Both the residential and business surveys reveal an opposition to an increase in the property tax. Services were prioritized by survey respondents. The services which ranked highest were police and fire services. Those services ranked the lowest in priority were outdoor ice rinks, park ranger and forestry programs. In 2010, the number of park rangers was reduced by 25 %, and the number of outdoor ice rinks was reduced by 45 %. Reductions are proposed for 2011 in the forestry program by eliminating the Oak Wilt grant program and private property services. The 2011 budget proposes the elimination of the park ranger program. There are no new personnel positions proposed for 2011. However, the Fire Department will recruit 15 volunteer firefighters to replace those who have left the department due to retirements or resignations. Due to community growth, a police patrol position and records technician is proposed to be added in 2012. A street maintenance position is proposed to be added in the fall of 2012. The proposed budget includes a recommendation to utilize $2.8 million of the General Fund fund balance to finance major maintenance projects and reduce debt and assist the 2011 operating budget, thus minimizing the need to levy taxes for the next several years. Mr. Feller explained that the proposed budget is premised on the appropriation of the General Fund balance in 2011 to minimize tax impacts. The General Fund balance is proposed to be reduced to 40.1 % which is within the fund balance guidelines established by the City Council. The proposed budget includes a tax levy with no increase for 2011. The estimated City taxes on an average residential property in Lakeville will decrease by approximately $32 for the coming year. The City portion of property taxes on most commercial and industrial properties will also decrease for the coming year. Overall 97% of all Lakeville property owners will see a decrease in City taxes for 2011. Looking forward to 2012, Mr. Feller indicated that the estimated tax levy is $24.7 million, which is a $659,000 or 2.7% increase. The increase is primarily due to the street reconstruction program and the Kenrick Avenue CITY OF LAKEVILLE COUNCIL MEETING SEPTEMBER 7, 2010 Page 6 raodway project. The levy for operations is proposed to increase by 8/10 of 1 %, which is solely attributable to the addition of a police officer, records technician and street maintenance positions. The only proposed changes to fees are those related to utilities as a result of cost increases for Metropolitan Council charges, street lighting electricity, environmental resources operations and water treatment facility debt service requirements. A residential customer with 20,000 gallons of usage during the winter quarter will see a $4.93 increase in their quarterly utility bill, assuming no change in consumption. A commercial account that uses 100,000 gallons will see a $20.16 increase in their quarterly bill, assuming no change in consumption. Overall, Lakeville's water and sanitary sewer fees are less than those charged by other Minnesota metro area municipalities. Mr. Feller explained that Lakeville has the third lowest taxes of any city in Dakota County. Lakeville's per capita spending is the lowest of the 20 largest metro area cities; and Lakeville has the lowest number of employees per capita, second lowest in the number of police officers per capita, in the metro area. Credit rating agencies consider Lakeville to be of high quality with a very favorable AA rating. Mr. Feller encouraged residents and business owners to review the budget documents, along with links to relevant information sources, on the City's website. Council Member Bellows stated that he disagreed with several premises of the budget, that he interprets the findings of the surveys differently, disagrees with the proposed issuance of certificates of indebtedness for capital items and has a variety of questions about specific line items in the proposed budget. He also questioned the willingness of staff to decrease the fund balance of the General Fund for 2011, while there was a reluctance to decrease the General Fund balance last year. Council Member Swecker stated she feels it is important that the Council takes the community survey into consideration, in addition to comparing where Lakeville ranks with other cities. She commended Mr. Feller and the budget process and stated she looks forward to additional feedback prior to the December 6th truth in taxation public hearing and consideration of a final levy. Council Member Miller expressed the importance of a balance between taxes and services. He reiterated that while the community survey CITY OF LAKEVILLE COUNCIL MEETING SEPTEMBER 7, 2010 Page 7 showed that residents are not in favor of a property tax increase, they do like the services the City provides. Council Member Rieb commended the work of City staff in proposing a budget for 2011 with a zero tax levy increase. She stated she appreciates the City's long range planning and keeping the City's financial future stable. Mr. Mielke commended department directors for meeting the challenge of maintaining services without adding employees or increasing costs that would result in a tax levy increase. The new positions proposed for 2012 have been justified by the department directors, and he and Mr. Feller are ready to justify those positions. He explained that the budget is the City Council's policy document relative to services and taxes. City staff will be looking to the Council for feedback and direction. 10.53 Motion was made by Rieb, seconded by Swecker to approve Resolution No. 10 -61 adopting the 2011 preliminary tax levy. Roll call was taken on the motion. Ayes, Rieb, Miller, Dahl, Swecker. Nay, Bellows. 10.54 Motion was made by Swecker, seconded by Rieb to approve Resolution No. 10 -62 setting the 2010 Truth in Taxation public hearing. Roll call was taken on the motion. Ayes, unanimous. 10.55 Motion was made by Miller, seconded by Rieb to approve Resolution No. 10 -63 approving the proposed 2011 budget and estimated 2012 budget. Roll call was taken on the motion. Ayes, Dahl, Swecker, Rieb, Miller. Nay, Bellows. 10.56 Motion was made by Swecker, seconded by Rieb to approve Resolution No. 10 -64 amending the 2010 budget. Roll call was taken on the motion. Ayes, unanimous. Item 10 - Local Housing Incentives Account Program CITY OF LAKEVILLE COUNCIL MEETING SEPTEMBER 7, 2010 Page 8 Mr. Olson presented a resolution electing to continue participating in the Local Housing Incentives Account Program under the Metropolitan Livable Communities Act. He explained that the Metropolitan Council has established new goal ranges for both affordable and life cycle housing units for Lakeville for the period of 2011 through 2020. While it is unlikely that the City will be able to meet either the affordable or life cycle housing goals, there are no penalties or consequences for not meeting those goals. Participation in the program provides an opportunity for the City to compete for grants and loans to support activities that help the City meet its affordable and life cycle housing goals, clean up polluted sites and support demonstration projects linking jobs, housing and transit. The City has been a voluntary participant in the Metropolitan Livable Communities Act Local Housing Incentives Account since the program began in 1996 and has benefited by more than $700,000 in grant funds. Mr. Mielke pointed out that City staff is supporting continued participation in this program because it is not mandatory, and the City is not forced to obtain these goals. In partnership with the Dakota County Community Development Agency, Lakeville already has one of the largest infusions of public housing in Dakota County. 10.57 Motion was made by Miller, seconded by Rieb to approve Resolution No. 10 -65 electing to continue participating in the Local Housing Incentives Account Program under the Metropolitan Livable Communities Act. Roll call was taken on the motion. Ayes, unanimous. New Business 10.58 Motion was made by Swecker, seconded by Rieb to approve Resolution No. 10 -66 authorizing temporary closing of 165th Street from Ipava Avenue to Jackdaw Path for the funeral of Police Sergeant Brigham Strole. Roll call was taken on the motion. Ayes, unanimous. Announcements: ➢ L.B.A. Groundbreaking at Miracle Field - September 12 ➢ Lakeville Arts Festival - September 18 -19 ➢ Next regular City Council meeting, September 20, 2010 CITY OF LAKEVILLE COUNCIL MEETING SEPTEMBER 7, 2010 Page 9 Mayor Dahl adjourned the meeting at 9:31 p.m. Respectfully submitted, Charlene Friedges, [City Clerk Holly Dahl,