HomeMy WebLinkAboutItem 06.bPresentations /Introductions
Citizens' Comments
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
DECEMBER 6, 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: Roger Knutson, City Attorney
Steve Mielke, City Administrator
Tom Vonhof, Police Chief
Dennis Feller, Finance Director
David Olson, C.E.D. Director
John Hennen, Park Maintenance & Operations Mgr.
Chris Petree, Operations & Maintenance Director
Daryl Morey, Planning Director
Charlene Friedges, City Clerk
No additional agenda information.
Students Against Destructive Decisions (SADD) from Lakeville North and
Lakeville South high schools thanked the City Council for supporting their
organization and reminded residents of the City's social host ordinance.
Chris Petree presented the November monthly report of the Operations &
Maintenance Department.
Richard Henderson, 20664 Jutland Place, thanked the City staff for
meeting with representatives of Malt -O -Meal and the adjoining neighbors
to discuss and seek expansion options that would avoid any impact on
the existing conservation easement. He stated the residents appreciate
the City's responsiveness to their concerns.
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
DECEMBER 6, 2010
Page 2
Consent Agenda
Mr. Mielke stated Dakota County has requested that the City Council
table consideration of Item �r until December 20 to allow them an
opportunity to make minor modifications to the documents.
Council members added agenda items 7 and 9 to the consent agenda.
10.82 Motion was made by Bellows, seconded by Miller to approve the consent
agenda items as follows:
a. Claims for payment.
b. Minutes of the November 15, 2010 City Council meeting.
c. Resolution No. 10 -98 accepting donation to the Fire Department
from Residential Mortgage Group.
d. Resolution No. 10 -99 accepting donations for the 2010 Lakeville
Manufacturers Appreciation Reception.
e. Resolution No. 10 -100 accepting donation to the Police Department
from Brackett's Crossing.
f. Change Order with Midwest Fire Apparatus for the 3000 gallon
tender fire truck.
g. Resolution No. 10 -101 authorizing the sale of a fire truck.
h. Resolution No. 10 -102 authorizing the sale of City assets and liquor
store premiums.
Resolution No. 10 -103 approving the Metropolitan Council
Municipal Publicly Owned Infrastructure Inflow /Infiltration Grant
Program Application.
Resolution No. 10 -104 authorizing preparation of a feasibility report
for the 2011 street improvement projects.
k. Performance and instructor agreements for the Lakeville Area Arts
Center.
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
DECEMBER 6, 2010
Page 3
Resolution No. 10 -105 establishing rules and rental fees for use of
City athletic facilities.
m. Resolution No. 10 -106 establishing rules and rental fees for use of
City shelters, buildings and park property.
n. Contract with Dakota County for Sentence to Service Program work
crews.
o. Jamesdale Estates preliminary plat extension.
P.
q.
Interim use permit to allow outdoor rental of automobiles as an
accessory use at 16055 Buck Hill Road.
Acceptance of improvements and final payment to McNamara
Contracting, Inc. for Improvement Project 09 -02, Holyoke Avenue
and Highview Avenue pavement reclamation and reconditioning.
r. (This item tabled.)
s. Economic Development Commission's 2011-2013 Strategic Plan for
Economic Development.
7. Findings of Fact and Ordinance No. 872 rezoning property located
at 7029 -190th Street West from RA, Rural /Agricultural District, to AP,
Agricultural Preserve District.
9. Resolution No. 10 -107 authorizing submittal of the 2011 Community
Development Block Grant Application to the Dakota County
Community Development Agency.
Roll call was taken on the motion. Ayes, unanimous. Mayor Dahl
abstained from voting on Item 6d due to a conflict of interest.
Item 8 - Conditional Use Permit for a Commercial Horse Stable
Ms. Tove Johnson requested Council approval of a conditional use permit
to allow the operation of a commercial horse boarding stable for up to 40
horses on property located at 8229 -190th Street W.
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
DECEMBER 6, 2010
Page 4
Mr. Morey explained that the property is 9.66 acres and is zoned RA, Rural
Agricultural District. It currently consists of an existing single family home
and several accessory buildings. A new 9,120 square foot pole -type horse
barn is proposed in conjunction with the horse stable. A conditional use
permit is required to allow more than one detached accessory building
with a combined area greater than 8,712 square feet. He explained that
the proposed building meets the side yard building setbacks, and the
Planning Commission recommended approval on a 3 -1 vote. A
neighboring resident had expressed concerns with respect to headlights
and traffic disturbances as a result of increased activity on the subject
property. The neighbor has met with the applicant, and her concerns
have been addressed.
10.83 Motion was made by Bellows, seconded by Swecker to approve Findings
of Fact and a Conditional Use Permit to allow a commercial horse stable
in the RA District, more than one horse per acre, and more than one
detached accessory building with a combined area greater than 8,712
square feet on property located at 8229 -190th Street W.
Roll call was taken on the motion. Ayes, unanimous.
Item 10 - Truth in Taxation Public Hearing
Mayor Dahl opened the Truth in Taxation public hearing.
Finance Director Dennis Feller presented the proposed budget and tax
levy. The proposed tax levy has been decreased by $5,000 since the
preliminary levy was adopted on September 7.
Adjustments have been made to the preliminary budget since its
approval in September, which are primarily the result of replacements
and transition of employees. Revenues in the General Fund Budget have
been adjusted, primarily in the area of building permits. Mr. Feller pointed
out that the ratio of fund balance to expenditures is 40%, which is
consistent with the City Council's policy.
Mr. Feller highlighted the Capital Projects Fund, which includes financial
resources that have been appropriated to the acquisition and
improvement of capital facilities and equipment. The proposed debt for
2011 includes $2.6 million for the street reconstruction program. The debt
will be repaid with property taxes as well as assessments to the benefiting
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
DECEMBER 6,2010
Page 5
property owners. The debt also includes $2.6 million for the Kenrick
Avenue extension project from 175th Street to 183 Street. Consistent with
the Council's direction at the November 22nd work session, there will be no
debt issued in 2011 for equipment acquisition.
Mr. Feller highlighted the Liquor Fund, which is self- supporting from retail
sales. Lakeville operates three stores with combined sales of $15 million.
The net income for 2011 will be appropriated to the outdoor warning
sirens, Fire Department tender truck, Police Department computers, Fire
Station #4 debt, police station debt and payments to the General Fund.
With respect to the Utility Fund, Mr. Feller explained that the Metropolitan
Council Environmental Services (MCES) is raising its charges to the City of
Lakeville for the coming year by 3.2 %. In addition, electric utility
companies have increased their rates over the past year. In order to pay
for impending major maintenance projects, water system debt service
costs, MCES charges and street light electricity, a utility rate increase is
proposed for the coming year. The increase will vary from $3.00 to $4.60
per quarter, depending upon the amount of water used.
The proposed tax levy for 2011 is $24,036,000, which represents a
decrease of $5,000 from 2010. The average residential property will see a
$35 decrease in the City's portion of their taxes. Businesses valued at $1
million will see a decrease of approximately $31. Mr. Feller pointed out
that actual taxes may vary from parcel to parcel, depending on market
value.
Mayor Dahl opened the hearing to questions and comments from the
audience.
Brian Bartz, 11420-242nd Court E., questioned the City's outstanding debt.
He also asked if the City plans to make improvements to the former Police
Station building for use as a senior center. He questioned employee
health insurance contributions. He also voiced frustration that the City
was unsuccessful in acquiring a Costco and Trader Joe's. For the
businesses that remain in the industrial park, he stated, valuations are
going down while taxes are going up.
Mr. Mielke stated that the City Council has identified a possible re -use of
the former police station building as a senior center and historical society.
In the event the Council chooses to retain the building, rooftop, heating
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
DECEMBER 6, 2010
Page 6
and ventilation improvements will be needed. Potential costs have been
identified in the budget, but no decision has been made to proceed with
the project.
Mr. Mielke explained the City's health insurance premiums and the
different plans offered to employees in an attempt to keep costs as low
as possible. Negotiations with the union groups are ongoing.
Mr. Mielke explained that the City did attempt to negotiate with Costco
to locate in Lakeville; however, the City Council would have had to
choose to leave the off -sale liquor business, as it is not possible under state
law to operate in competition with a private off -sale establishment. He
pointed out that proceeds from Lakeville's municipal liquor operations
underwrite property taxes by roughly 5 %.
Mr. Feller addressed property valuations and taxes, explaining that
property owners pay a pro rata share of the tax levy. There are several
factors that affect taxes, based on property values.
Mr. Feller addressed the City's current outstanding debt of approximately
$90 million. He pointed out that Lakeville has a AA1 credit rating by
Moody's Investor Service. He explained that not all debt is paid with ad
valorem taxes, and debt is not bad if there is a long term financial plan in
place to pay for it.
Mr. Olson stated that while a number of jobs have been eliminated in the
industrial park over the past couple years, existing businesses are
expanding and new businesses are relocating to Lakeville.
Grant Jacobson, 20859 Idaho Avenue, stated the current business climate
has not changed in the past year, and the City should not charge more
for its services, i.e. water rates.
Mr. Feller explained that what is driving the proposed water rate increase
is the outstanding debt on the water treatment facility and the decrease
in water connection charges as a result of the current economic crisis. He
explained that water rates are divided into three tiers. Tier 1 represents
less than 30,000 gallons, and tier 2 is 30,000 to 50,000 gallons. The most
significant adjustment to the water rate is in tier 3, which is irrigation; and
residents and businesses have the option of adjusting their lawn watering
practices accordingly.
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
DECEMBER 6, 2010
Page 7
Mr. Mielke pointed out that the City Council made adjustments to the
budget in 2008 and 2009 by reducing the budget and city services by 6%
and employee levels by 10 %. Staffing levels are now where they were in
2002, even though the community has grown by 12,000 residents since
then.
Michael Jentsch, 16813 Hutchinson Drive, stated he feels the average
salary of a City employee is much higher than the average salary of an
employee in the private sector. He suggested the City Council offset the
increase in health insurance premiums by cutting staff.
Mr. Mielke explained that employee labor laws are different for the public
sector than they are for the private sector; and the laws place restrictions
on how the City negotiates with its unions. The law also requires the City
to conduct internal compensation comparisons.
Jack Matasosky, 21476 Grenada Avenue, urged the City Council to
consider the impact of the budget on small businesses and their ability to
recover from the economic crisis.
Todd Bornhauser, Ex. Director of the Lakeville Area Chamber of
Commerce, expressed frustration that the City Council did not take the
opportunity to evaluate the size and scope of the budget and make long
term structural cuts.
Mr. Mielke explained defined benefit contributions for public employees,
which is mandated by the State Legislature.
Ron Gerk, 10466 West 175th Street, suggested the City Council consider
utilizing liquor funds to pay off the park debt and equipment acquisitions.
He questioned where the funds came from to purchase the new fire truck
recently approved by the Council. He also stated he feels there is no
reason to pursue the Kenrick Avenue extension project at this time.
Mr. Feller reported that the new fire truck is being paid for by the liquor
fund. With respect to the liquor fund cash balance, he explained that the
City Council has adopted a 5 -year Capital Improvement Plan which
includes potential store improvements which the City Council may or may
not choose to implement.
CITY OF LAKEVILLE COUNCIL MEETING MINUTES
DECEMBER 6, 2010
Page 8
Cheryl Wicklund, a Lakeville resident, shared some of the frustrations that
were expressed to her by Lakeville residents when she was campaigning
door to door this fall.
Council Member Miller addressed the proposed future construction of
Kenrick Avenue and clarified that the Council has not determined
whether the project is necessary at this time. It was pointed out that
approval of the budget does not approve the project.
10.84 Motion was made by Miller, seconded by Swecker to close the Truth in
Taxation public hearing.
Voice vote was taken on the motion. Ayes, unanimous.
10.85 Motion was made by Bellows, seconded by Rieb to hold a budget work
session on December 15, 2010 at 6:15 p.m.
Roll call was taken on the motion. Ayes, unanimous.
New Business - none
Announcements -
➢ Lakeville Area Arts Center Holiday Art Sale, December 10-11
➢ Next regular Council meeting, December 20, 2010
Mayor Dahl adjourned the meeting at 9:02 p.m.
Respectfully submitted,
Charlene Friedges, City Clerk
Holly Dahl, Mayor
Minutes
Lakeville City Council
City Council Work Session
November 22, 2010
6:00 p.m.
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
Keith Nelson, City Engineer
Steve Michaud, Parks and Recreation Director
Dave Olson, Community and Economic Development Director
Daryl Morey, Planning Director
Chris Petree, Operations& Maintenance Director
Brenda Visnovec, Liquor Operations Director
Tom Vonhof, Police Chief
,bhn Kornmann, Emergency Management Director
Mike Meyer, Fire Chief
Cindi ,bosten, Human Resources Manager
Penny Brevig, Recording Secretary
The meeting was called to order at 6:00 p.m. by Mayor Dahl.
I TBVI #1 — 2011 Street Improvement Project Update
Operations & Maintenance Director Chris Petree stated that at the September 27, 2010
work session, the City Council had authorized a neighborhood meeting to discuss the
proposed 2011 Street Improvement Project. The meeting was held on October 28, 2010.
He indicated that they also conducted some initial investigative work as part of the project,
some soil borings, surveying, infrastructure evaluation, etc. Mr. Petree's PowerPoint
presentation included updated information for the City Council regarding location of the
projects, projected costs, estimated assessments, resident feedback and what the next steps
will include. Included in the packets is a memo from WSB with responses to questions that
were received via phone, comment card or at the public meeting.
Council Member Swecker asked when these roads were constructed or reconstructed. City
Engineer Keith Nelson indicated that they were originally constructed in the early 1960's
and have never been reconstructed.
City Council Work Session Minutes
November 22, 2010 Page -2-
Council Member Swecker clarified with Mr. Petree that the waste haulers are meeting the
weight load limits for the roads. But, Mr. Petree also indicated that, to a certain extent,
waste haulers are exempt from the load limits on the roads.
Council Member Miller asked which kind of curb would be installed. Mr. Nelson
indicated that it would be the same kind that is currently there. People have expressed that
they like the lower driveway curb so their trailer hitches and bumpers don't hit the curb
when they enter or exit their driveways.
Mr. Petree commented that there will only be minor work done on the infrastructure of
these neighborhoods. Everything is in very good shape with regard to the sanitary sewer
lines, hydrants, etc.
Mr. Petree indicated that the neighborhood meeting was very positive. Residents asked
specific questions, understanding that the construction will be happening and wanting to
know how they will be affected during the project. Council Member Swecker confirmed
with staff that the mailboxes will be updated, along with some street signs. Mr. Petree
commented that this was discussed with the residents and they agreed that this would be
the time to get all the mailboxes up to City code and make them uniform. This has been
included with the estimated project cost.
Council will authorize the preparation of a Feasibility Report or Study for the proposed
project at the December 6, 2010 City Council meeting.
ITEM #2 — 2010 -2011 Budget Topics
City Administrator Steve Mielke stated that there are two agenda items related to the
budget; one is a review of the budget with the status and options of how to close out the
2010 budget and the other is responses to the written questions that were received from
the Chamber of Commerce Public Policy (formerly Government Affairs) Committee.
Mr. Feller described the General Fund which accounts for all revenues and expenditures
necessary to provide a full range of services, including general government administration,
community and economic development, public safety, public works, and parks and
recreation. Mr. Feller stated that over the last several months a number of events have
transpired which will impact the proposed 2011 budget. The relevant issues include
revision of the estimates in building permit revenues from residential construction.
Relevant expenditure adjustments are primarily personnel issues.
Council Member Swecker asked if the money in the Contingency Fund is carried over from
the previous year and what would normally be included in the Contingency Fund. Mr.
Feller explained that the Contingency is for unforeseen items which are almost always
weather related. Any unexpended Contingency funds become a part of the subsequent
years' fund balance.
City Council Work Session Minutes
November 22, 2010 Page -3-
Mr. Feller discussed the options with respect to financing General Fund operations.
Council Member Miller brought up the Kenrick Avenue project. He asked what would be
involved with this project, and whether it has Council's support. Council Member SNecker
indicated that residents are very anxious for this project to start. Council Member Bellows
feels this is driven by speculation. He indicated that normally new roadswould be driven
by development and he feels that taxpayers may not want to pay for this project. Mr.
Mielke indicated that the project can be left in the CIP and the decision does not have to
be made at this time.
There was a discussion amongst the Council Members regarding the City memberships,
their cost and which ones which might be considered for discontinuance. Mr. Mielke
explained the memberships and how they benefit the City. Mr. Mielke recommended that
the Council wait and see what happens with our new Governor prior to dropping
memberships. Council Member Bellows stated that he believes the Council should make a
statement by immediately discontinuing the membership with the Association of
Metropolitan Municipalities.
Council Member Bellows asked whether the budget should include new employees in
2012. Mr. Mielke indicated the Council will consider the 2012 budget and any proposed
new positions in the summer of 2011.
Council Member Bellows questioned having to pay a facilitator at the Council Goal Setting
Retreat. The other Council Members agreed to remove the $5000 for a facilitator from the
2011 General Fund Mayor and Council budget and tax levy.
City Council consensus is to:
a) Approve the 2010 budget adjustments as shown on Exhibit A (pages 28 -30 of
the packet).
b) Transfer $270,673 in 2010 from the General Fund contingency to Equipment
Fund to reduce the debt issuance for the coming year.
c) Approve the 2011 General Fund budget as amended subject to the
adjustment of the Contingency of the revenues and expenses as shown in
Exhibit A (pages28 -30 of the packet).
Mr. Feller continued with an overview of the Special Revenue Funds section. He indicated
that there are no proposed changes to the preliminary 2011 Communications Fund,
Compensation Liability, or Economic Development Fund budgets. He listed the options
for the Environmental Resources Fund and the proposed $.50 per quarter increase in the
Surface Water Management Fee.
It was determined that there is a regulatory process and it's getting more expensive for
these projects and programs listed under the Environmental Resources Fund, but they are
mandatory programs. The City can be fined for not doing them. Council Member Bellows
City Council Work Session Minutes
November 22, 2010 Page -4-
asked what the impact on commercial would be for these programs. Mr. Feller indicated it
would be about a 6% increase, depending on the size of the lot and impervious surface.
City Council consensus is to:
a) Approve all Special Revenue Fund 2011 budgets as presented subject to the
$1,300 adjustment in the Environmental Resources Fund.
b) Approve the $0.50 increase in the surface water management fee to finance
the projects and maintain the Environmental Resource Fund's financial
integrity.
Mr. Feller presented an overview of the Capital Projects Funds and the different options
available, which include Debt for equipment acquisitions, use of Fund balance— rather
than debt for equipment, reduced tax levy, equipment acquisitions, improvement
Construction Fund — Street improvements, Improvement Construction Fund — Kenrick
Avenue extension, or other improvement projects. Mr. Feller stated that there is one
adjustment to the Improvement Construction Fund of $45,000 and two reductions in the
Equipment Fund.
City Council consensus isto proceed with the proposed 2011 Capital Projects Funds
budget as presented subject to the following:
a) Equipment Fund expenditures reduction in 2010 and 2011 of $117,810 and
a corresponding decrease in debt issuance. The reduction is the result of
equipment acquisition cost savings.
b) Transfer $270,673 in 2010 from the General Fund to the Equipment Fund
and decrease debt issuance accordingly.
c) Finance the remaining $265,000 of equipment acquisitions with reduction in
Fund Balance.
d) Improvement Construction Fund increased expenditures in 2011 of $45,000
and a corresponding decrease in Fund Balance as shown in Exhibit B, which
is attached to the packet.
Mr. Feller presented an overview of the Debt Service Funds. He indicated that there is a
net change in fund balance of $1,501,930. Overall, the debt is decreasing by
approximately $2 million.
City Council consensus isto proceed with the 2011 proposed Debt Service Fund budget as
presented and finance the remaining $265,000 of equipment acquisitions with a reduction
in fund balance.
Mr. Feller presented an overview of the Liquor Fund and options. City Council concurred
with the staff recommendation to proceed with the 2011 Liquor Fund budget as presented.
Mr. Feller reviewed the Utility Fund — Water Operation. He explained the water tiered
rate structure. Tier 1 is primarily water consumption for sustaining life and good health.
Businesses are subject to Tier land Tier 11. Tier 111, which has the most significant rate
City Council Work Session Minutes
November 22, 2010 Page -5-
increase, is predominately for irrigation and is considered discretionary. City Council
consensus isto proceed with the proposed 2011 Utility Fund — Water Operation budget
and rate structure as presented.
Mr. Feller reviewed the Utility Fund — Sanitary Sewer Operation. Mr. Feller indicated that
the proposed sanitary sewer rate increase is important to maintain the fund's financial
stability and provide financing for major maintenance projects. Council Member SNecker
asked how much the SAC increases are for the coming year. Community and Economic
Development Director David Olson stated that it's standard $100 - $130 per unit.
City Council consensus isto proceed with the 2011 proposed Utility Fund — Sanitary
Sewer Operation budget, sanitary sewer rate increases, and MCESsanitary sewer charge
adjustment as presented.
Mr. Feller stated that the electric utility companies have already implemented rate
increases; hence, staff is recommending a utility fee increase for the coming year. City
Council consensus isto proceed with the 2011 Utility Fund — Street Light Operation
budget including a rate increase as proposed.
Mr. Feller reviewed the Utility rate structures and proposed changes in rate structures and
indicated that there would be approximately a $4.60 rate increase per quarter in 2011.
Mr. Feller presented an overview of the Municipal Reserves Fund. These are basically self -
insured funds. He stated that various City funds receive a charge from the Municipal
Reserves Fund for their respective share of general liability insurance premiums, claims,
and other related legal and administrative expenses. Mr. Feller indicated that the general
liability and workers compensation insurance is provided through the League of Minnesota
Cities Insurance Trust, a municipal insurance pool, in which the City retains exposure to
losses for liability claims. City Council consensus is to proceed with the 2011 Municipal
Reserves Fund budget as proposed.
Mr. Feller presented an overview of the property taxes. He indicated that the 2011
proposed tax levy will result in a reduction for the overwhelming majority of residential
and commercial /industrial properties. Prudent spending has resulted in no City tax
increase which, when combined with a growing tax base, results in lower City tax impacts
for both business and residents. Mr. Feller stated that the overwhelming majority of
commercial and industrial property owners will see a decrease in their 2011 City property
taxes but an increase in the total property tax b i l l because of Fiscal Disparities and the State
General Property Taxes. The City share of taxes represents 14% of the total tax bi I I for
businesses.
Council Member Swecker indicated that she felt it was a huge advantage to Lakeville that
Rep. Mary Liz Holberg is now Chairman of the Ways and Means Committee.
Response to Citizen Inquiries:
City Council Work Session Minutes
November 22, 2010 Page -6-
Mr. Feller stated that the Chamber of Commerce Public Policy (formerly Government
Affairs) Committee submitted questions at the November 15, 2010 Council meeting and
additional questions on November 18 ". Staff has tried to sort the questions into categories
and address the questions as groups.
The following categories, with the specific questions listed underneath, along with
footnotes for specific line items, were handed out at tonight's meeting and were explained
and answered by Mr. Feller:
1. Budget Expenditure
2. Debt
3. Interfund Transfers
4. Changes in Operations
5. Forestry Position
6. Personnel
Mr. Feller pointed out that the response to the questions includes references to the page
numbers of Budget Document as further substantiation of the answers. Mr. Mielke will
provide the documented responses to the Chamber of Commerce.
Council Member Swecker asked if these questions came from a business group or from the
Chamber of Commerce. Mr. Mielke wasn't sure, but will ask for a clarification.
Mr. Mielke, along with the Council and directors thanked Mr. Feller for all hiswork that
went into these documents.
ITEM #3 — Discuss date change or cancellation of December Council Work Session
Mr. Mielke stated that typically the Council would have a work session on the fourth
Monday of December; however he did not see a purpose for having that meeting and
suggested changing it to the second Monday of December. Mr. Mielke indicated that there
would probably only be one or two agenda items, including committee and commission
appointments. This would give Council time to consider their options before making those
decisions. Mr. Mielke indicated that he would not be available for a work session on
December 13.
ITEM #4 — Interagency Committee and Board Reports
• ALF
Senator Franken visited Apple Valley Fire Station #1 earlier today. Hisvi
was intended to learn more about the financial impacts of federal policy on
ambulance services.
• HiPP
The second of three work sessions has taken place. A survey was sent out that
gave all council members a chance to offer input. Lakeville was one of the top
City Council Work Session Minutes
November 22, 2010 Page -7-
Respectfully submitted,
Penny Brevig
Recording Secretary
Holly Dahl
Mayor
four responding agencies for that survey. Next step will be the creation of
focus groups of citizens that will be asked a series of questions relating to
collaboration. The process is on -going with the hope of producing a set of
ideas for exploration. The group will attempt to expand beyond cities and
counties, perhaps to schools, non - profits, and for - profits.
ITEM #5. — Adjourn
Adjourn to commence closed meeting at 8:30 p.m. in the Marion Conference Room of City
Hall to consider strategy for labor negotiations.
The meeting adjourned at 8:20 pm.
In attendance:
Staff:
Minutes
Lakeville City Council Work Session
December 15, 2010
Mayor Holly Dahl
Council Member Mark Bellows
Council Member Laurie Rieb
Council Member Kerrin &Necker
Council Member Kevin Miller
Dennis Feller, Finance Director
Dave Olson, Community and Economic Development
Director
Daryl Morey, Planning Director
Keith Nelson, City Engineer
Steve Michaud, Parks and Recreation Director
Tom Vonhof, Police Chief
Michael Meyer, Fire Chief
Brenda Visnovec, Liquor Operations Director
Cindi ,bosten, Human Resources Manager
,bhn Kornmann, Emergency Operations Manager
,bdi Hawkins, Deputy City Clerk
The meeting was called to order at 6:15 pm by Mayor Dahl.
I TEM #1 —
Mayor Dahl stated that approximately $1 million would need to be cut from the
budget in order to make an appreciable difference and asked Council Members and
staff for any ideas which might contribute to a decrease. Council Member Rieb asked
Finance Director Dennis Feller if there had been any additional correspondence from
residents regarding their property tax statements. Mr. Feller stated that he has only
received a couple phone calls since the Truth and Taxation notices were delivered in
early November. Parks and Recreation Director Steve Michaud stated that he has
received some calls regarding the closing of the ice rinks.
Council Member Kevin Miller asked where the revenue from the sale of the Fire Dept.
tender will be used. Mr. Feller stated that these funds will go back into the Equipment
Fund and this has been estimated in this fund.
Council Member Bellows asked if the Council had reached a consensus on the Kenrick
Avenue project. Council Member Miller stated that a decision would not need to be
made now and there would not be an impact on the budget until the Council officially
City Council Work Session Minutes
December 15, 2010 Page -2-
approved the project. There has also been some uncertainty with the developer of the
property and the viability of the project. It is anticipated that this decision can be
addressed by the new Council. Whether the developer has an existing opportunity to
bring some business to the community is not known. Timing as it relates to the cost of
the bond funding at this time va a year or two from now is also a consideration. Daryl
Morey added that the site isconstrained by wetlands, irregular topography, and other
environmental issues. These issues will require additional area for the road connection
and will cut down on the land which will be usable for building pads. These factors,
along with the current market, will determine when or if the project will proceed.
There is no deadline on issuing the bonds and Dakota County may contribute to the
project due to its impact on traffic alleviation.
Council Member Bellows stated that there is no commercial development driving this.
Mr. Bellowsasked if the City Engineering Department stands to lose engineering fees if
this is not done. Mr. Feller said there is no loss. Bellows asked why it's been put in
the budget. Mr. Feller stated that it was put in the budget to make the public aware of
the potential project and to promote economic development of existing businesses in
the SouthFork and TimberCrest areas. Council member Swecker stated that she had
talked with two businesses that were in favor of the project. Whether the project stays
in the budget as a place - holder or is removed, there is no impact on the 2011 tax levy.
Council members felt that more information would be needed in order to make a
decision.
Mayor Dahl reiterated that a sizable cut would need to be made from this budget in
order to make an appreciable difference in 2011 and the Kenrick project is not a factor
in reducing the 2011 tax levy
Council Members Bellows suggested drawing down the Liquor Fund by appropriating
funds to the payment of the Park Bond issue. Mr. Feller explained that through 2014
there is an annual payment of approximately $424,000 per year for debt on the Park
Referendum Bonds. Liquor Funds are also committed for Fire Station #4 debt
payments as well as future capital improvement projects. Council Member Bellows
perceives a public relations problem when residents see $6 million in a Liquor Fund
they wonder why it's not being used. Mr. Feller stated that the five -year Capital
Improvement Plan identifies$6.3 million of potential liquor store expansions. If the
Council chooses not to proceed with those projects, there would be approximately $5
million available for other purposes as deemed appropriate by the City Council.
Council Member Miller asked how much debt the Liquor Fund has Mr. Feller stated
that there are $3.8 million of liquor bonds and $1.7 million of bonds for the Fire
Station #4 debt. Council Member Miller offered a word of caution on drawing down
the balance until a decision for the long -term is made. Bellows stated that he would
like to have a complete analysis of the municipal liquor operations including impact
on commercial businesses, what's anticipated in the legislature, and other questions.
Miller stated that a decision to get out of the liquor business would be irreversible.
City Council Work Session Minutes
December 15, 2010 Page -3-
Ms. Swecker stated that if the City gets out of the Liquor business, City property taxes
would increase by approximately 5 %.
Bellows added that he would like to discuss some restructuring ideas as well as plans
for the former police station. He has been approached by a business which might be
interested in buying or leasing the building and feels the public is also wondering why
something isn't being done.
There were no further comments from Council or staff. Mayor Dahl thanked staff for
being in attendance.
ITEM #2 — Board and Commission appointment process
Mayor Dahl began the discussion regarding reappointments of board and commission
members whose terms are expiring at the end of 2010. Following the discussion at a
previous work session Council Member Swecker made phone calls to the committee
chairs and vice chairs of the individual committees, asking for recommendations on
the reappointments of their board members.
The Arts Center has two current openings and the Chair felt that the members who are
up for reappointment are very engaged. Alternate Kris Murto is working on grants for
the tenth anniversary of the Arts Center and is interested in being appointed to the
regular three -year term.
The Economic Development Commission has a vacancy at the Alternate position. The
Chair and Vice Chair felt the joint work session was very productive and would like to
continue to hold similar meetings with Council. It was suggested that when looking
for a new member a retailer /office representative would be considered to round out the
membership, since there are currently several members from the industrial sector. The
Chair and Vice Chair felt the alternate position could be eliminated.
The opening on the Parks, Recreation and Natural Resources Committee isfor the
remainder of a three -year term which was vacated by the resignation of Pat Messinger.
The alternate member, ,brry Zell, is interested in being appointed to fill that position.
The Chair and Vice Chair recommend his appointment as well as reappointment of
,banne Peterson and Scott Kelly.
Council Member &Necker also spoke to the Planning Commission Chair and Vice
Chair, Bart Davis and Brooks Lillehei regarding the reappointments. They both spoke
highly of Karl Drotning'scontributionsto the commission; and felt that Gerry Grenz
has developed as an active participant. The Chair and Vice Chair concur that it has
been difficult and frustrating to work with Jason Glad due to his dissertations and
talking in circles. be Blee is interested in being reappointed as an alternate.
City Council Work Session Minutes
December 15, 2010 Page -4-
Council Member Swecker suggested that the Council hold off on reappointments for
the Telecommunications Commission until the role of the commission is more clearly
defined. The terms of all current members will expire at the end of 2010. Advertising
for the vacancies is not being recommended at this time.
&Necker stated that the committee chairs and vice chairs appreciated the opportunity
to offer input to a Council member regarding these positions. Miller asked that input
from staff liaisons to the committees also be solicited.
Bellows stated that members of all advisory committees serve at the discretion of the
Council. In the next year he plans to address some of the perceived issues of the
Planning Commission, such as being more business and development friendly. He
feels the feedback from the development community is not in line with the Planning
Commission chair. Sivecker suggested this might be a good opportunity to sit down
with the Planning Commission to discuss whatever people's concerns are and to offer
some guidance and direction. Bellows said this will be brought up again after the new
Council is in office to ensure that the right people are serving on the Planning
Commission.
Council Member Elect Colleen LaBeau suggested that a one -month term extension
could be offered to those whose are asking for reappointment, thus getting a quorum
for the January meetings. Openings have been advertised and she doesn't think people
should be automatically reappointed while at the same time asking for applications.
Council Member Rieb said the advertisement was for actual openings. LaBeau
understood Steve Mielke to say that the Council customarily reappoints people;
however they have to advertise just to advertise and then they don't interview the
applicants if current members want to be reappointed. She feels that current members
who wish to be reappointed should submit an application for consideration just like
everyone else. She also feels that there should be a limit to how long people should
be on a committee. Mayor Dahl said she had brought up term limits a few years ago
but in discussions it was decided not to establish them at that time. LaBeau said the
people are looking for change. She wants appointments and reappointments to be
done at the same time.
Jack Evans suggested that interviews be done before reappointments are made so all
candidates' information is available. Bellows felt that would be a good process for
next year, but it's too late to implement that process for 2011.
Council Members summarized their recommendations. It was Council's consensus to
• Appoint Kris Murto to a three -year term on the Arts Center Board and
advertise for one regular member and an alternate. Reappoint Speiker.
City Council Work Session Minutes
December 15, 2010 Page -5-
• Appoint a retailer /office representative to the ®C when there is a vacancy.
Reappoint Schubert, Matasosky and Starfield
• Appoint .brry Zell to complete the remainder of a three -year term on the
Parks, Recreation and Natural Resources Committee which is currently
vacant. Reappoint Peterson and Kelly; advertise for an alternate.
• Reappoint Drotning, Grenz, and Blee to their current positions on the
Planning Commission; advertise for the position currently filled by Jason
Glad.
ITBVI #3 — Discussion of Union negotiations
Motion was made by Rieb, seconded by Miller, to adjourn to a closed session to
discuss Union negotiations.
Motion passed unanimously.
The meeting adjourned at 7:05 p.m.
Respectfully submitted,
Judi Hawkins
Deputy Clerk
Holly Dahl
Mayor