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HomeMy WebLinkAbout12-15-10 WSMinutes Lakeville City Council Work Session December 15, 2010 In attendance: Mayor Holly Dahl Council Member Mark Bellows Council Member Laurie Rieb Council Member Kerrin Swecker Council Member Kevin Miller Staff: 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 Joosten, Human Resources Manager John Kornmann, Emergency Operations Manager Judi Hawkins, Deputy City Clerk The meeting was called to order at 6:15 pm by Mayor Dahl. ITEM #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 vs. a year or two from now is also a consideration. Daryl Morey added that the site is constrained 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. Bellows asked 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 is for the remainder of a three -year term which was vacated by the resignation of Pat Messinger. The alternate member, Jerry Zell, is interested in being appointed to fill that position. The Chair and Vice Chair recommend his appointment as well as reappointment of Jeanne Peterson and Scott Kelly. Council Member Swecker 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's contributions to 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. Joe 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. Swecker 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. Swecker 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 EDC when there is a vacancy. Reappoint Schubert, Matasosky and Starfield • Appoint Jerry 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. ITEM #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,