HomeMy WebLinkAboutItem 06.bCITY 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 Mark Bellows
Council Member Kerrin Swecker
Council Member Laurie Rieb
Council Member Kevin Miller
Also Present: Roger Knutson, 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
Additional agenda information - Mr. Mielke provided an additional item
to be considered under New Business.
Presentations /Introductions
OCTOBER 4, 2010
Lieutenant Colonel Barb O'Reilly of the Minnesota National Guard
presented a proclamation naming the City of Lakeville a Yellow Ribbon
City. Andy Bohlen thanked the City Council members for their support on
behalf of the Yellow Ribbon organization.
Duane Zaun and Bob Erickson, representing the Friends of the Lakeville
Area Arts Center, presented the Lakeville Area Arts Center annual
update.
Chris Petree presented the Operations & Maintenance September
monthly report.
Keith Nelson provided an engineering project update.
Citizens Comments
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
OCTOBER 4, 2010
PAGE 2
Harley Horsager, 17141 Jaybell Court, and Diane Craig, 19710 Jersey
Avenue, representing the Lakeville Friends of the Environment, invited the
Council members and viewing public to the Pedal the Parks event at
Casperson Park on Sunday, October 10th.
Colin Lee, 17372 Jalisco Lane, stated that while he has been
campaigning door -to -door, residents in the Valley Park area have
expressed an increased concern regarding the safety of their school
children at Dodd Blvd. and CR 46. He stated residents are also
concerned with the increase in property crimes in the Valley Park area.
Chief Vonhof thanked Mr. Lee and stated he was not aware of any
concerns being expressed to the Police Department but would forward
the information to the department's patrol division.
Consent Agenda
10.61 Motion was made by Bellows, seconded by Miller to approve the consent
agenda items as follows:
a. Claims for payment.
b. Minutes of the September 20, 2010 City Council meeting.
c. Resolution No. 10 -69 accepting donations to the Parks & Recreation
Department.
d. Minnesota Snowmobile Trails Assistance Program agreement with
Minnesota DNR for maintenance and grooming grant.
e. Joint Powers Agreement with Vermillion River Watershed Joint
Powers Organization for the installation of a pond irrigation system
at King Park.
Resolution No. 10 -70 accepting donation to the Fire Department
from Residential Mortgage Group on behalf of Alan and Julie Ann
McEntee.
g.
h. Resolutions No. 10 -72 and 10 -73 accepting donations from Divine
Swine Catering and Ole Piper Restaurant to the Police Department.
i. (This item was removed from the consent agenda.)
Resolution No. 10 -74 establishing Pioneer Plaza Induction Policy.
k. Performance agreement with Patchouli for the Lakeville Area Arts
Center.
Roll call was taken on the motion. Ayes, unanimous.
Item 6i
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
OCTOBER 4, 2010
PAGE 3
Resolution No. 10 -71 accepting donation from D.W. and L.K.
Lundberg to the Police Department K9 Program.
Mr. Morey presented the request of Dennis Dunham for a one -year
extension of the conditional use permit approved by the City Council in
2008 for an outdoor storage facility on his un- sewered lot located in the I -1
Limited Industrial District. Mr. Dunham is requesting the extension due to
the current economic conditions. The Planning Commission
recommended approval on a 4 -2 vote.
Council Member Swecker asked if the non - compliance issues on this
property have been addressed. Mr. Morey stated the Planning
Department has worked closely with the property owner, and those issues
have been addressed.
10.62 Motion was made by Swecker, seconded by Bellows to grant a one -year
extension to the Dennis Dunham conditional use permit for outdoor
storage on property located east of Kenrick Avenue, south of 215th Street
and east of Kaparia Avenue.
Roll call was taken on the motion. Ayes, unanimous.
Item 7 - Spirit of Brandtjen Farm 6 Addition
Jacob Fick of Tradition Development requested Council approval of the
Spirit of Brandtjen Farm (SBF) 6th Addition preliminary plat of 29 single
family lots and the final plat of 15 single family lots. He explained that the
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
OCTOBER 4, 2010
PAGE 4
SBF 6th Addition is a re -plat of lots that were preliminary and final platted
with the first SBF development phase in 2005. Tradition Development is re-
platting these lots in response to market feedback to create additional
walk -out lots and to provide more green space area between homes.
Planning Director Daryl Morey presented the planning report. He
explained that all lots in the SBF 6th Addition meet the performance
standards of the approved SBF Planned Unit Development approved in
2005. The Planning Commission and Parks, Recreation & Natural
Resources Committee unanimously recommended approval.
Council Member Miller asked how many lots are being re- platted. Mr.
Morey stated this plat represents a reduction in one lot to allow for
additional green space between homes.
10.63 Motion was made by Rieb, seconded by Miller to approve the following:
➢ Resolution No. 10 -75 approving preliminary and final plat of Spirit of
Brandtjen Farm 6th Addition;
➢ Resolution No. 10 -76 vacating public street rights -of -way, drainage
and utility easements;
➢ Resolution No. 10 -77 conveying City -owned land for inclusion in the
final plat of Spirit of Brandtjen Farm 6th Addition;
➢ Third Amendment to the Spirit of Brandtjen Farm Development
Contract.
Roll call was taken on the motion. Ayes, unanimous.
Item 8 - Apple Minnesota LLC On -Sale Liquor License Application
Mayor Dahl opened the public hearing on the application of Apple
Minnesota LLC for an on -sale and Sunday liquor license at Applebee's
Neighborhood Grill & Bar, 18404 Kenrick Avenue. The City Clerk attested
to legal notice publication. Council Member Swecker stated she would
abstain from discussion and decision on this item due to a conflict of
interest.
Chief Vonhof explained that the Applebee's restaurants are being sold to
a new company, Apple Minnesota LLC. Because Lakeville ordinance
does not allow for the transfer of a liquor license, the new owner is
required to submit a license application. The Police Department
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
OCTOBER 4, 2010
PAGE 5
reviewed the application and conducted background checks on the
four officers. The Police Department recommends approval of the on-
sale and Sunday liquor license as requested.
There were no questions or comments.
10.64 Motion was made by Bellows, seconded by Miller to close the public
hearing. Voice vote was taken on the motion. Ayes, unanimous.
10.65 Motion was made by Bellows, seconded by Rieb to grant an on -sale and
Sunday liquor license to Apple Minnesota LLC at Applebee's
Neighborhood Grill & Bar, 18404 Kenrick Avenue.
Roll call was taken on the motion. Ayes, Rieb, Miller, Bellows, Dahl.
Swecker abstained.
New Business
Mr. Olson presented a resolution approving an Order to Secure a vacant
building located at 16108 Fairgreen Avenue. He explained that a portion
of the foundation wall collapsed into the basement as a result of heavy
rainfall in August. Gas and electric services came into the structure at the
approximate location of the foundation wall failure and had to be
disconnected. The property owners were informed that they could not
occupy the home until the necessary repairs were made. The property
owners have vacated the house and decided to let it go back to the
mortgage holder.
Mr. Olson explained that Minnesota Statutes require that the City Council
adopt a resolution authorizing the issuance of an order to secure a
vacant structure. The City is required to provide a 14 day notice to the
property owner. Any costs associated with securing the structure will be
assessed against the property.
Council Member Bellows asked how the City normally finds out about
abandoned homes. Mr. Olson explained that the City is notified by
foreclosure lists and sheriff's sales; however, the home is usually vacant for
60 to 90 days before that notification takes place. Also, neighbors will
notify the City if they see that yards haven't been kept up. Mr. Mielke
added that utility companies are required, at certain times of the year, to
notify the City if they are shutting off utilities to a home.
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
OCTOBER 4, 2010
PAGE 6
Mr. Mielke stated staff will attempt to contact this property owner to
obtain a waiver from the 14 -day notification period, allowing the City to
proceed immediately with securing the property.
10.66 Motion was made by Miller, seconded by Swecker to approve Resolution
No. 10 -78 ordering the securing of a vacant building at 16108 Fairgreen
Avenue.
Roll call was taken on the motion. Ayes, unanimous.
Announcements:
➢ Fire Prevention Open House at Fire Station 4 - Tuesday, October 5
➢ Belgian waffle breakfast at Senior Center - Sunday, October 10
➢ Next regular Council meeting, October 18, 2010
Mayor Dahl adjourned the meeting at 8:22 p.m.
Respectfully submitted,
Charlene Friedges, City Clerk
Holly Dahl, Mayor
Minutes
Lakeville City Council Work Session
September 27, 2010
In attendance: Mayor Holly Dahl
Council Member Laurie Rieb
Council Member Kerrin Swecker
Council Member Kevin Miller
Absent: Council Member Mark Bellows
Staff present: Steve Mielke, City Administrator
Dennis Feller, Finance Director
Keith Nelson, City Engineer
Chris Petree, Operations and Maintenance Director
Steve Michaud, Parks and Recreation Director
Tom Vonhof, Police Chief
Judi Hawkins, Deputy City Clerk
The meeting was called to order at 6:00 pm by Mayor Dahl.
ITEM #1 — 2011 Street Improvement Projects
Operations and Maintenance Director Chris Petree outlined information which has previously
been provided to Council regarding the pavement management program and directions which
staff has received regarding 2011 street improvement projects. The Pavement Management
Program began in 2009 with rating all roadway surfaces in the city. At the February 22, 2010
work session, a study was presented which indicated that based on the overall roadway
conditions and repairs which will be needed funding is inadequate to maintain the current
roadway network at an acceptable level of repair.
At the April 26, 2010 work session Council was presented with a comprehensive Pavement
Management Program and Fiscal Impact Report which detailed several financing options in
order to avoid a backlog of maintenance and deterioration of the roadway system. The
options would be 1) a pay -as- you -go plan; using debt on a three -year or ten -year plan; 2) use
structured debt for the proposed rehabilitation and reconstruction projects; or 3) lower the
amount of projects that are done, or complete them over a longer period of time. Staff
recommended and Council Members agreed that using structured debt in order to equalize
payments over a set number of years was the best option. At that meeting Council directed
staff to prepare a proposed 5 -year CIP and budget for recommended areas of rehabilitation
and reconstruction.
The streets that are being proposed for reconditioning in 2011 are near the downtown area
and are original streets. Most are in poor or failing condition and are beyond cost effective
repair. Staff is proposing installation of concrete curb and gutter where there is currently
City Council Work Session Minutes
September 27, 2010 Page -2-
none. The adopted Street Reconstruction Policy establishes a 60 City cost / 40 property
owner cost for general reconstruction costs. Storm sewer upgrades are also 60/40 0 /0.
Concrete curb and gutter in locations where there is no concrete curb and gutter is 100%
assessed to the property owner. The estimated total cost of all projects in 2011 is $2,675,000,
of which the City's cost will be $1,503,717. Based on the assessment policy, the remaining
$1,171,283 will be assessed to benefitted property owners. The city's cost will represent a
2012 levy increase of 1.2 %.
The project timeline begins in October 2010 with surveys, soil borings, etc., and continues
with ordering a feasibility study, scheduling a neighborhood open house and public hearing
in January, followed by a bid opening, etc. Construction would be scheduled for June
through October 2011. This timeline will allow residents to attend meetings and offer input.
If residents are overwhelmingly opposed to the projects, Council will have the option of not
ordering a specific project; however by policy no future major maintenance would be done
on these streets, since it would not be cost effective.
Council Member Swecker asked if the construction would have an effect on Pan -O -Prog
activities in the downtown next summer. Mr. Petree is confident that working with the
contractor on the construction schedule would eliminate any potential conflicts.
Council directed staff to move forward by advertising the project and scheduling public
hearings and neighborhood meetings in order to keep affected property owners well
informed.
ITEM #2 — Holyoke / 210' Street Intersection
City Engineer Keith Nelson stated that the City had been approached by ISD 194 regarding
McGuire Junior High School traffic congestion and safety concerns, both on -site at the school
and at the intersection of 210 Street and Holyoke Avenue. The City and the school district
shared the cost of a traffic study which was conducted by SRF. The study recommended
improvements to the parking and traffic patterns at the school. Improvements that can be
made by the City include reconstruction of Holyoke Avenue south of 210' Street and addition
of a dedicated left turn lane. This would eliminate the on- street parking on the east side of
Holyoke which is utilized by Cross of Christ Church. The cost of the left turn lane is
estimated at $30,000, plus engineering and possible right -of -way acquisition costs.
Prescriptive rights may apply along the west side of Holyoke since the public has been using
the adjoining property, without objection, for a long time. Long term, when Holyoke Ave is
reconstructed, there will be some access modifications. This item is not in the CIP but is in
the budget projections for 2011.
Council directed staff to continue with planning for construction of the turn lane and pursue
discussions with property owners along Holyoke Avenue.
City Council Work Session Minutes
September 27, 2010 Page -3-
ITEM #3 — Pioneer Plaza Induction Guidelines
Parks and Recreation Director Steve Michaud stated that the original intent of Pioneer Plaza
was to have a place to recognize members of the community who have made a difference
and improved the quality of people's lives. To date there have been three inductees into the
Pioneer Plaza: Bud White, Nich Mahowald, and Jerry Erickson. In each case, the families of
the inductees have paid for the plaques. There are many people still living who are deserving
of such recognition, and for that reason there is a need for a policy or guidelines as to who
will receive this award. Council members received a copy of recommended selection criteria
and process for nominations.
The Parks, Recreation and Natural Resources Committee has reviewed the draft policy and
recommends adoption of these guidelines. Council directed staff to move forward by
bringing the proposed policy to City Council at a future regular meeting.
ITEM #4 — Budget Questions and Concerns
Mr. Mielke stated that the purpose of this agenda item is to provide responses to questions
that were raised at and subsequent to the September 7 Council meeting. The preliminary
budget was adopted with the maximum tax levy being set. Following staff's responses to the
questions, Council is invited to submit any further questions or request additional information.
Finance Director Dennis Feller provided a memorandum with detailed explanations to the
following questions:
1. Describe the impact of foreclosures on City operations and budget.
City expenses are incurred due to additional staff time being required for inspections and
monitoring. In addition, foreclosures result in diminished property tax revenues.
2. Delete $250 from the Police Department Chaplaincy budget.
This adjustment will be made and will be reflected in the revised final budget.
3. Provide an overview of the Mayor and Council budget.
The Mayor and Council Members have not raised their salaries for over ten years and
there are no changes proposed. An increase was perceived due to one of the Council
positions being vacant for a short time in 2009. This Mayor and Council budget also
includes membership in several organizations which benefit the city in many ways
including access to the League of Minnesota Cities' (LMC) liability insurance trust. The
LMC Insurance Trust has a superior claims administration, safety programs, education
programs, and cost containment. The Municipal Legislative Commission is largely a
lobbying organization whose positions are in alignment with the City Council. The
primary purpose of membership in the Association of Metropolitan Municipalities (Metro
Cities) is to monitor areas affected by the Met Council such as transportation and
infrastructure, and housing mandates. I -35W Solutions Alliance has been influential in
lobbying to increase capacity and safety on 35W through Lakeville. There is also a
$5,000 appropriation for a Council goal setting session in 2011.
City Council Work Session Minutes
September 27, 2010 Page -4-
4. Provide data regarding resident and business opinions relating to services and taxes.
The proposed 2011 budget is consistent with community survey responses by residents
and businesses to refrain from tax increases in 2011. 97% of taxpayers will experience a
reduction in taxes. The survey also showed that by a margin of 2:1 residents would
oppose cuts in city services even to reduce City property taxes. Budget reductions are
being made in low priority non - essential services only.
5. Describe trends on property values and taxes.
Mr. Feller commented on the home valuation decrease /market- correction. Many
property owners mistakenly believe that if the home value decreases, the taxes should
also decrease. The reason that is not necessarily true is because taxes are allocated to
individual properties based on their pro -rated share of the total tax base, not on a
percentage of the property value. Residential properties receive a homestead credit
which is not available to businesses and a lower classification rate than businesses.
6. Provide an overview of the issuance of debt for equipment acquisitions.
Equipment acquisitions are financed from various revenue sources including cash
reserves, taxes, liquor fund, sales of assets, other revenues sources and issuance of short-
term debt. The debt is used to finance assets which have a useful life of 10 -15 years.
The debt will be retired in less than 3 years.
Debt is one of the financial tools the City uses to level out the peaks and valleys of the
long term capital improvement plan without causing an undue financial burden on
taxpayers. The use of short-term debt will enable the city to have no tax increase in
2011 and very minimal increases in 2012 and future years.
Current interest rates are very favorable. As such, the issuance of short-term debt in
2011 will result in net interest costs of approximately $8,000 per year for 2012, 2013
and 2014.
Mr. Feller stated that the proposed 2011 budget is based on 2010 pricing as a means of
controlling costs. Cost increases however are inevitable such as those associated with
diesel engines in order to comply with EPA standards. As such the Equipment Fund
budget includes a $108,861 contingency.
Council members commended Mr. Feller for consistently using prudent techniques for
keeping the tax levy low and providing a financial plan for the future. Council Member
Swecker stated that Council is very open to considering any budget suggestions from the
Council or the public.
7. Capital Improvement Budget and Policy.
Capital improvement budget policies provide guidelines for the budget process. The
proposed 201 1 budget provides full disclosure of capital outlay acquisitions and a level
of accountability and transparency that exceeds policy. As such the budget detail
provides a framework for cost control which is one of the components which enables
the city to have low taxes and low per capita spending.
City Council Work Session Minutes
September 27, 2010 Page -5-
8. Provide a comparison of the actions taken by the school board and county regarding
wages.
Non -union workers at Dakota County are projected to receive a 1% increase. At ISD
194 all employees who are members of a collective bargaining group will receive a
compensation increase in 2010 -11; non -union employees will receive compensation
increases in 2011 -12.
9. Provide an explanation of proposed changes to the Forestry position and program.
The City Forester will no longer respond to questions or provide advice to homeowners,
but will begin only working to take care of trees on City properties. The remainder of
the Forester's time will be assigned to park maintenance duties.
10. Provide justification for the addition of a Streets Maintenance position in 2012.
This position is scheduled to be filled in October 2012 and it will be the first addition to
the department since 2007. Since then, 3.6 miles of streets (7.3 lane miles) have been
added for snowplow responsibilities. Several plats currently in the system will add
several more lane miles, with more anticipated in 2011. An aging street system also
requires additional maintenance hours.
11. Provide justification for the addition of a Police Officer and Police Department Records
Technician in 2012.
The number of sworn officers on the force is the same today as in 2008 but the
population will have increased by 1,500 residents in 2012. Lakeville's ratio of officers to
population is among the lowest of the 20 largest metro area cities. Staff needed for
processing of police records information has not been increased since 2004.
72. What are the proposed 2011 surface water management fees for commercial and
industrial properties?
A surface water management fee is allocated to all residential parcels. Commercial and
industrial charges are based on a "Residential Equivalent Rate" according to parcel size
and impervious areas; a $.50 per quarter increase is being proposed. Mr. Feller showed
examples of two commercial properties and the effect this would have on their fees.
13. What are the projections for future water rates?
Water rates will increase in 2011 in order to pay for debt service obligations. Future
water rate adjustments will depend on the cost trends of such items as electricity to
operate the wells and water treatment facility, chemicals to treat the water, and weather
patterns. The debt on the Water Treatment Facility will be retired in 2016. Commercial
and industrial properties pay Tier 2 rates based on consumption, and only pay Tier 3 if
they irrigate. Tier 1 rates are amongst the lowest in the Metro area.
14. Impacts of additional liquor sales competition.
The budget takes into consideration a reduction of 5.4% of sales at the Kenrick Store
only. Increased competition in Burnsville will impact sales to the Kenrick Liquor Store.
Costco, Byerly's and Cub Foods will be opening off -sale liquor stores. Costco had
expressed an interest in developing in the City but only on the condition that they would
be able to sell beer and wine. In order to obtain such a license, State Statutes would
require the City of Lakeville to get out of the liquor business. Lakeville Liquor generates
City Council Work Session Minutes
September 27, 2010 Page -6-
about $1.2 million of profits which is designated for city projects. In the absence of a
Liquor Fund, City taxes would be approximately 5% higher. If the City got out of the
liquor business and the Costco project would have proceeded, Costco would only have
provided approximately $50- 60,000 for the city property taxes and $60- 80,000 in school
district taxes. In other words, it would have taken 8 -12 Costco projects to equal the loss
of revenues from liquor operations. More importantly, the city benefits by maintaining
control of alcohol sales.
15. Budget — Overall.
The 2011 budget is $58 million; an increase of $8 million compared to 2009. Mr. Feller
provided an overview of individual funds which make up the increase, including Capital
Improvement Projects, Utility maintenance projects, and increases in General Fund
public safety. Mr. Feller stated that an explanation of each of the funds budget and
significant project cost is contained within the budget document. The majority of the
increase is due to infrastructure improvements such as roads and utilities.
16. Microsoft upgrades.
The standard computer replacement schedule was previously on a four -year plan, and
has now been moved to a five -year plan. Consequences of not upgrading computers
include incompatibility with some of the other programs and applications. In previous
budget discussions it was recommended to wait for the next application rather than
upgrade to MS Office 2010. After researching and reviewing alternatives it was decided
to delay the upgrade from 2010 to 2011. Mr. Feller added that technology is one of the
areas that help the City maintain a high level of efficiency and low taxes.
Mr. Feller provided graphs showing that Lakeville has the lowest in per capita spending of the
50 largest metro area cities and is 43r in per household taxes Mr. Feller stated that in his
opinion per capita spending is the most accurate measurement of comparing the efficiencies
of operating costs and per household taxes is one of the most accurate measurement for
financing operations. Lakeville has the third lowest taxes in the county in spite of the fact that
it receives no state aid for property tax relief.
Council was asked for any questions or comments, and if there are other budget topics they
would like to discuss at a future work session. Council Members commented that over the
years Lakeville has been a well run, fiscally conservative community and commended staff for
their continued diligence.
Mr. Mielke reminded Council that if they wish to alter the level of City services this document
can be revised. If that is the case, direction is needed for staff. Council Members felt that the
budget was reflective of the message citizens had sent via the community survey. Council
Member Rieb commented that the Council has worked for many years to make this a great
City that people want to move to; and they are not willing to throw it away. Council
members did not feel that further discussions would be necessary; however citizens are
encouraged to submit any suggestions.
City Council Work Session Minutes
September 27, 2010 Page -7-
ITEM #5 —
Other:
Lakeville sustainability practices
Allyn Kuennen's informational memo outlines the City's sustainability policies including
energy efficiency, green initiatives, low impact development, etc. Further discussions
might be needed at the strategic planning areas. No action is needed at this time.
Interagency Committee and Board Reports
• ALF /DCC
Discussions have been held about the dispatching practices with Allina and DCC.
Some changes are anticipated with the new technology coming from the LOGIS
systems.
• Lakeville Arenas
Everything is running smoothly with the new leadership.
• 1 - 35 Solutions Alliance
Working on policy statements towards Met Council's Transportation Policy Plan.
• MLC
The Policy Committee will be meeting to develop an outline for legislative action.
• Cedar Corridor Improvement Group
This group has not been meeting, as the project is in the implementation stage.
• CVB
No update.
• DLBA
Council Member Rieb recently provided an update on the budget to the DLBA.
• HiPP
Is getting the plan underway for a collaboration study with SCALE.
ITEM #6 — Adjourn
The meeting adjourned at 8:00 pm.
Respectfully submitted,
Judi Hawkins
Deputy Clerk
Holly Dahl
Mayor