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HomeMy WebLinkAbout02-28-11 WSMinutes Lakeville City Council Work Session February 28, 2011 In attendance: Mayor Mark Bellows Council Member Laurie Rieb Council Member Kerrin Swecker Council Member Matt Little Council Member Colleen LaBeau Staff: Steve Mielke, City Administrator Dennis Feller, Finance Director Dave Olson, Community and Economic Development Director Daryl Morey, Planning Director Chris Petree, Operations and Maintenance Director Steve Michaud, Parks and Recreation Director Brenda Visnovec, Liquor Operations Manager Cindi Joosten, Human Resources Manager Tom Vonhof, Police Chief Michael Meyer, Fire Chief Judi Hawkins, Deputy City Clerk At 5:30 p.m. Council members interviewed one candidate to fill a vacancy on the Lakeville Area Arts Center Board. The meeting was called to order at 6:00 p.m. by Mayor Bellows. ITEM #1 — County Road 50 /County Road 60 Intersection Study Dakota County Engineer Kristi Sebastian presented a study on the intersection of County Roads 50 & 60 (Kenwood Trail & 185` Street) which had recently been completed by Bolton & Menk at the request of Dakota County. The study was conducted for the purpose of evaluating existing traffic conditions, identifying current issues, and planning for future growth and increased traffic. The 50/60 intersection is currently controlled by a traffic signal and is functioning at a Level of Service (LOS) D, which is acceptable in an urban area. However, based on anticipated traffic by 2030, the intersection would be over capacity with excessive delays. Four -lane divided highways and intersection upgrades will be required for both County Road 50 and County Road 60 by 2030. In 2009 Dakota County and the City of Lakeville applied for and were awarded federal grant monies for a round -about option at the intersection. The study which was recently completed looked at that option as well as others and recommends a full double -lane roundabout to best handle the anticipated growth. A LOS C would be expected from the installation of this round - about. Benefits would include fewer delays, reduction in severity City Council Work Session Minutes February 28, 2011 Page 2- of collisions due to the lower rate of speed, improved pedestrian safety and lower capital and operating costs. Council members expressed concerns for removal of the signal and asked if it would be more difficult for emergency vehicles to safely maneuver through the intersection. Other concerns were for the amount of space a double -lane roundabout would require and the impact it would have on surrounding residences and businesses, where right of way will need to be acquired. Estimated project cost is $2.1 million. Design and right of way costs would be split 45% City / 55% County. Construction costs would be funded 80% by Federal grants with the remaining 20% costs to be divided 45% by the City and 55% by Dakota County. This project is included in the approved City Capital Improvement Plan as a 2013 project. An open house is scheduled for March 22 nd at the Lakeville Water Treatment Facility to begin discussions with residents and development of a preferred alternative and design. The Kenrick Avenue extension project could impact this intersection by taking some of the volume from this area but it would not be enough to eliminate the need for improvements. The project will be brought to the Dakota County Board of Commissioners and the Lakeville City Council in June for consideration. Council Member Little asked if an amendment to the agenda could be considered so that Council could discuss a joint meeting between the Planning Commission and the City Council. Mayor Bellows will bring up the discussion after Item 5. ITEM #2 — Tax Increment Financing Summary Report Community and Economic Development Director David Olson provided a summary of Lakeville Tax Increment Financing as an informational item for the City Council. In the City's new Strategic Plan, Tax Increment Financing (TIF) was mentioned as being in the "toolbox" of incentives for attracting businesses to Lakeville. The compilation of this information was prompted by a resident's comments at a Council meeting and by a letter to the editor in the local paper. Mr. Olson explained that the main objective of TIF is to encourage development or redevelopment which serves a public purpose and would not otherwise occur without the use of TIF. The most common public purposes are: expanding the property tax base; providing employment opportunities; redeveloping blighted areas; remediating polluted soils; and constructing low- and moderate - income housing. When the duration of the TIF has expired, the property goes back on the tax rolls for the city and school district. Finance Director Dennis Feller provided an overview of six existing and seven expired TIF projects in the City of Lakeville. He stated that return on investments has been favorable and the properties contribute more in taxes than what was paid out. The seven expired districts have a market value of approximately $40 million and employ between 900 and City Council Work Session Minutes February 28, 2011 Page -3- 1,000 workers. TIF projects have included affordable workforce and senior housing; redevelopment of blighted downtown lots; cleanup of contaminated soils from the site of a previous gas station; and creation of economic development opportunities. Modification to TIF District #8 provided for acquisition and renovations of property for the Lakeville Area Arts Center. The Dakota County CDA has also utilized TIF in Lakeville to provide affordable senior housing, rental workforce housing, and funding for a first -time homebuyer program. The expiration of a CDA TIF district in 2010 resulted in a 1.7% increase in the tax base. After 2014 there will only be one remaining TIF district in the city. ITEM #3 — Kenrick Avenue Extension Project Report City Administrator Steve Mielke stated that the Kenrick Avenue connection is identified in the CIP as a possible 2011 construction project and Council is being asked to decide if the project should remain in the budget for planning purposes. He reminded the Council members that the CIP is a financial planning document; projects in the CIP do not occur until ordered by Council. Staff has been in contact with the property owner; however no agreement on construction has been reached. Mielke provided the Council with an overview of the project's background. The City's Transportation Plan identifies Kenrick Avenue from County Road 50 ( Kenwood Trail) to County Road 60 (185 Street) as an A -Minor Reliever, intended to relieve traffic on other roadways. The Kenrick connection will relieve traffic at the 185 St. and Kenwood Trail intersection; decrease short trips on 1 -35W; provide alternate transportation to the vicinity; increase traffic to the retail areas of Southfork, Argonne Village, and TimberCrest; and encourage commercial development in those business districts. With rental retail space at Southfork, Argonne and TimberCrest approximately 98% filled, market conditions seem to be favorable for additional commercial area at this location. This connection could also provide an alternate route during construction of the CR 50/60 intersection. Impediments to the project would be the property's wetlands and steep slopes that will increase the difficulty of constructing the road and limit the amount of buildable land for the property owner. Due to this, it is likely that some city financial involvement will be needed. Another possible downside might be competition for tenants between new and existing retail spaces. Wetland mitigation and soil conditions have not been determined. The City Engineer's cost estimate is $2.4 million. Financing options could include A. General Obligation (GO) Special Assessment Bonds (shown in the budget as $191,000 per year for 20 years); B. Capital Projects /Street Improvement Funds — non property tax dollars that could be utilized, however, if these funds are gone, municipal state aid or GO improvement bonds would then be needed for other projects. C. Tax Increment (TIF) financing D. GO Tax Abatement bonds. An additional levy would also be needed. City Council Work Session Minutes February 28, 2011 Page -4- E. Grants: The project would likely be eligible for matching federal funding through a competitive grant process but there is no guarantee of funding. Even though the project has been identified in the 2011 CIP, due to the timeline it is no longer feasible to begin the project this year. The project will need to be moved to the 2012 at the earliest. Staff will stay in contact with the property owners' representative. Council Member LaBeau asked if sound barrier walls would need to be built. Staff stated that this project would not require walls, but if additional lanes were built on 35W a sound study would be conducted by MnDOT. Council Member Rieb thanked staff for providing information and clarification on this project. ITEM #4 — 2011 -12 Budget Review At the last work session, department directors were asked to identify and prioritize up to 5% of their budgets for possible reductions. Steve Mielke provided Council with a summary of what has been accomplished toward that exercise. Exhibit A — Recommended 2011 Budget Adjustments Starting with 2011 and showing the impact through 2012, staff's recommendations consist of budget adjustments which could be made with little or no impact on City services. Reductions beyond those in Exhibit A could result in service impacts such as reductions or eliminations. Staff reminded Council that tax levies are set in December and cannot be changed. However, expenditures which are currently budgeted for 2011 can be removed from the budget. Finance Director Dennis Feller provided a department by department summary of the General Fund proposed budget reductions that staff has brought forward. Council discussed use of Liquor funds for ISD 194 Chemical Awareness program. Council members expressed a desire to keep this program in the budget and asked that the program administrator provide a report at an upcoming work session. Exhibit B — 2012 Budget Factors to Consider City Administrator Steve Mielke feels this exercise has been beneficial in preparing for the 2012 budget. Dennis Feller stated that the budget process begins by receiving guidance from Council in order to best utilize staff's preparation time. A list of potential factors to consider in establishing the budget included: City Council Work Session Minutes February 28, 2011 Page -5- • Additional employee positions: New employees for 2012 include a police patrol officer, a police records technician and a street maintenance employee. • ABLE facility improvements. • Police Gun Range. • Senior Center. • Development Fee survey. • Liquor Fund Analysis. • Appropriation of liquor funds. • Dennis Feller reviewed and summarized several other budget topics including bonds, debt service and revolving loan funds. Staff will be looking for direction from Council on several of these issues and options as the 2012 -13 budget is prepared. • Citizen Budget/Finance Committee. • Budget documents (re- formatting). • Building permit revenue projections. • Inflation factors. Exhibit C — Potential 5% Budget Reductions Steve Mielke stated that 5% of the General Fund budget would equate to $1.2 million. This would certainly result in service cuts and hence reductions in staff. Council conducted a line by line analysis of Exhibit C. Council Member Little proposed donating half of his salary (July through December) towards a Police Records Technician in order to increase the efficiency of patrol officers. He further proposed using a transfer from the Liquor Fund for the remainder of the cost of the position until 2012 when the position would be funded from the General Fund. Resident Marlow Illg, 17460 Highview Avenue, addressed the Council and encouraged further cuts in the budget. He also expressed concerns about several aspects of the Kenrick Avenue project. City Council directed staff to prepare a budget amendment resolution for consideration on an upcoming Council agenda. ITEM #5 — Financial Advisory Committee Mayor Bellows envisions the committee to be a task force and not a commission. The purpose of the task force would be for Council members to ask questions about the budget and build confidence among the citizens. City Council Work Session Minutes February 28, 2011 Page -6- Council Member Swecker asked about the process Mayor Bellows used for choosing prospective members of the task force. She had contacted members of the EDC and they stated that they were not involved in selecting members of the task force. Council Member Rieb stated that a couple members of the EDC were asked, but not everyone. Swecker and Rieb had understood that the task force discussion would be involve all members of the E DC. Council Member Swecker provided information she had gathered from cities with similar groups and the school district. Finance Policy and Audit Committees have been formed for various purposes including making recommendations to Council, acting as sounding boards for new ideas and concepts, reviewing specific projects and revenue sources, and recommending budget and debt policies. It should be made clear to task force members that they have no actual decision or policy- making power. Steve Mielke added that the task force should be charged with making recommendations, with the Council retaining the financial policy decisions. Budget open houses are held in several communities to obtain input and provide transparent information in a less formal setting. The ISD 194 Finance committee suggested no more than five members, with a precise application policy and mission. Swecker said she feels it is the Council's job to prepare the CIP, determine funding sources, and establish budget policies. She feels Council will benefit from this group by obtaining additional input from the community. Council Member Swecker, Steve Mielke, and Dennis Feller will meet to begin the process of developing written criteria for membership. Council Member LaBeau expressed her appreciation for the work that was done by Council Member Swecker to collect this information. LaBeau expects the group to be professional and not result in burdens or demands on staff. Dennis Feller said it was difficult to determine how much staff time would be involved. Council members stated they were in favor of additional transparency and opportunities to get new ideas. ITEM #6 — Joint meeting between City Council and Planning Commission. Mayor Bellows has spoken with Planning Commission Chair Bart Davis in regard to having a joint meeting. Mayor Bellows suggested the need for an analysis of Lakeville's fees compared with other cities, a discussion about streamlining the planning process, and how Lakeville can become more business and developer friendly. Staff is working on a toolbox of incentives to attract economic development to the community and streamline the development process. Council Member Little also feels it is important to look at why developers are frustrated with the system and their perception of the City not being business or developer friendly. He would like to look for ideas and suggestions for how to help make things run more smoothly and improve the City's image with developers. City Council Work Session Minutes February 28, 2011 Page -7- Steve Mielke stated that the Planning Commission is just one piece of the process. An analysis of fees and a toolbox of incentive are not necessarily Planning Commission issues. The Mayor stated that in his discussions with developers he was told that they experienced some discrepancies in what they were told in the beginning of the planning processes to what they were told later on. Swecker asked if the developers would be able to make recommendations for how the process might be improved. Bellows said consolidation of departments had been suggested. Council directed staff to schedule a joint City Council and Planning Commission meeting. Council members also continue to be interested in a strategic planning workshop. Staff will explore options for a facilitator and a possible date. ITEM #7. Adjourn The meeting adjourned at 12:10 a.m. Respectfully submitted, lo J di Hawkins uty Clerk Mark Bellows Mayor