Loading...
HomeMy WebLinkAbout12-06-10CITY,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. Presentations /Introductions 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. Citizens' Comments 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 6r until December 20th 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 I. 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. Interim use permit to allow outdoor rental of automobiles as an accessory use at 16055 Buck Hill Road. q. 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 -1 90th 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 183rd 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,