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HomeMy WebLinkAboutItem 06.cIn attendance: Staff: Minutes Lakeville City Council Work Session August 8, 2011 Mayor Mark Bellows Council Member Laurie Rieb Council Member Kerrin Swecker Council Member Matt Little Council Member Colleen LaBeau Steve Mielke, City Administrato Dennis Feller, Finance Director Chris Petree, Director of Operations and Maintenance Michael Meyer, Fire Chief Danny Barth, IT Manage Zach Johnson, Assistant City Engine Cindi Joosten, Human Resources Manager Judi Hawkins, Deputy City Clerk The meeting was called to order at 6:00 pm ITEM #1 — Continue review of the Preliminary Budge Finance Director Dennis Feller explained that for budget discussion purposes the budget document will be discussed in two p arts; the second part will be discussed at the August 22' Work Session. department directors will b e available during the discussions to answer any questions from Council. Discussions regarding the 2012 Preliminary Budget began at the July 25, 2011 Council Work Session. Preliminary approval of the budget is scheduled for September 6, 2011 The amount approved in December can be less but not more than the preliminary amount, Work sessions, public open houses and a presentation to the Chamber will take place during September, October, and November. Final consideration of the budget by the Council will be scheduled for December 5, 2011. Finance: There is a $46,000 i proposal for the department's effective January 151. Council with the personnel levels due feels confident that the propo ncrease from the 2011 budget, most of which is due to the two part-time positions to be authorized to go full time Member Swecker asked Dennis if he was still comfortable to the anticipated Finance Committee workload. Mr. Feller sed staffing levels will be adequate. Information Systems: IT Manager Danny Barth explained the initial start-up costs for moving to virtual desktops. This has been moved from 2011 to 2012 in the 5 -year Capital Improvement Fund in order to continue to research options. Council members have shown an interest in going to paperless packets. This option has been discussed in the past and a City Council Work Session Minutes August 8, 2011 Page -2- variety of options are available. Wireless internet would be necessary and it would be preferable if all Council members used the same hardware. Danny will check with a few vendors to see if they would be willing to offer equipment on a trial basis. Under Capital Outlay, Microsoft and GIS upgrades are scheduled for 2012. Fire Department: A budget of $44,804 in 2012 and 2013 shows no change from 2011. Fire Relief is asking for a 3% increase in benefit levels. Mayor Bellows would like to see a comparison of compensation levels to other cities' fire departments The budget also provides for training 10 rookies in 2012. Firefighters are requesting Class A uniforms which consist of a'!long- sleeved white shirt and tie to wear to formal functions, such as funerals. Council asked what type of uniforms are provided by other cities and asked for a price breakdown. Chief Meyer stated that more area departments are going to an hourly pay rate for fire- fighters rather than pay - per -call. It is estimated that this would increase City costs by about 15 %. Chief Meyer feels the firefighters would prefer a higher pension over increased pay for call -outs, if given the choice. There has not been a significant amount of interest from additional cities for a partnership in the ABLE facility. A feasibility report for a;fffth fire station is proposed for 2014. Streets: Due to a recent accident along Kenrick Avenue residents are requesting a speed study, lowering of the posted speed limit, and additional speed limit signage. The speed study will be funded by MnDOT. One streets maintenance worker will be added in 2012 with the first full year in 2013. Replacement of equipment has gone from a 10 -year schedule to a 12 -year schedule. Capital Outlay. Equipment to,be paidfor with Liquor funds are two dump trucks, Cat 950 loader, and the asphalt truck. llrt 2013 one dump truck replacement will also be paid for with Liquor funds. Council Member LaBeau asked about the grader replacement in the Equipment Fund budget in 2013 and if that was necessary, given the small amount of gravel roads in the city. Council members requested a cost comparison and the pros and cons of new and used equipment purchase. Mr. Petree stated that the grader is a very important piece-of equipment for snow removal and the only piece that will work in some instances. A federal (military site will be monitored for possible opportunities to purchase equipment at reduced prices. Council Member LaBeau asked about the purchase of a velocity patcher. Mr. Petree feels it is more efficient and economical for the City to own a regular patching machine and contract out the velocity patching. Mr. Feller discussed the five upcoming projects that will be paid for by Municipal State Aid (MSA) funds. There will not be any tax money used for these construction projects. Mr. City Council Work Session Minutes August B, 2011 Page -3- Feller provided a handout with revised 5 -year street reconstruction estimates. Finance options were presented. Option A: 10 -year amortization; Option B: 5 -year amortization; Option C: pay as you go tax levy. Street reconstruction debt is exempt from levy limits. Council members agreed that due to favorable interest rates a 10 -year financing option would be favorable as it would ensure fixed payoff rates. Dakota County is recommending replacement and reconfiguration of the signals at Dodd Blvd. and CSAH 50. Council agreed that it is important to add this re- signaling and re- striping project to the 2012 budget. Under Enterprise Funds Mr. Feller stated that there is no rate increase proposed for water and sewer rates, however anticipated street light charges by the utility companies will need to be passed along to residents. A study of estimated future water usage will need to be conducted as a result of several factors including population growth and the aging water treatment facility. Per capita water usage has destined in the last several years due to water conservation efforts. This has helped to reduce the need for a second water treatment facility and additional wells. Mr. Petree stated that :there are currently 16 operational wells and three that have been permanently closed. Council Member LaBeau asked what constituted "other" in the General Government category for each of the departments. This includes sale of water meters, penalties, and interest on investments. Staff will provide that information to the Council. Mayor Bellows asked about employee training. Employees can take advantage of some webinars and local conferences that are offered; however there is currently no lodging or travel expense for employees to attend conferences or seminars. Debt service: Council member LaBeau requested a copy of the City's bonds, repayment schedule, and interest rates. Mr. Feller referred Council to page 109 of the budget and will also provide a copy. Mr. Feller provided a handout titled, "How Changes to MVHC Program Will Affect Cities" which described the differences between the existing system of market value homestead credit and the new homestead market value exclusion for qualifying homes. The MVHC impact will be greater in outstate Minnesota cities which have not already begun to make the transition away from dependence on MVHC. The next budget work session is scheduled for August 22" The 2012 Preliminary Budget and preliminary tax levy are scheduled for adoption on September 6` Mr. Feller reminded Council that what they approve that night will be the maximum levy that can be adopted. Council Member Swecker asked about the park playground replacement schedule. Staff will provide a list for council discussion. Options are also still being analyzed for the Electrical Inspector position. City Council Work Session Minutes August 8, 2011 A possible community survey was discussed. Mayor Bellows stated that the Chamber is planning to survey some area businesses and it would be redundant for the City to conduct a similar survey. Other Council members would prefer a broader based survey which would encompass additional businesses which are not Chamber members. Several items remain to be discussed at the August 22 " work session. ITEM #2 — Other business. Based on interviews for Finance Committee members conducted by Council the week of August 1 ", a slate of appointees has been determined. Council members directed staff to prepare a resolution which would appoint the following candidates: three -year terms expiring March 31, 2014: Doug Anderson, Craig Manson, and Chris Hoins; two -year terms expiring March 31, 2013: Ben Coons and Darrellvtullenbach; one-year terms expiring March 31, 2012: Scott Einck and John Tuschner; Alternate — one-year term expiring March 31, 2012: Tim Peterson. ITEM #3 — Adjourn The meeting adjourned at 8:50 pm. Respectfully submitted, Judi Hawkins Deputy Clerk Mark Bell Mayor Page -.4- In attendance: Minutes Lakeville City Council Work Session August 22, 2011 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 Steve Michaud, Parks and. Recreation Director Tom Vonhof, Police Chief Captain Kevin Manias John Kornmann, Emergency Operations Manager Brenda Visnovec, Liquor Operations Manager Tom Nesseth, Senior Accountant Judi Hawkins, Deputy City Clerk The meeting was called to order at 6:00 pm ITEM #1 — Request by Niakwa Village 2" Addition Townhome Homeowners Association to create a Housing Improvement Area. The townhome units in Niakwa Village 2n Addition were constructed in the early 1980s and are in need of new exterior siding, which is estimated to cost between $318,000 and $388,000. The homeowners association has not been successful in obtaining bank financing for the exterior improvements. Keller Property Management contacted the City to ask about possible financing programs that might be available. Economic Development Director Dave Olson stated that Minnesota statutes allow for cities to create housing improvement areas to assist with financing common area improvements in privately owned townhome neighborhoods. Other cities in the metro area have used this tool to stabilize neighborhoods and improve areas that are in disrepair. Due to their previous experience, Dakota County CDA has agreed to assist the City of Lakeville as a consultant. Carin Rosengren, representing Keller Property Management, and several members of the Niakwa Village g Addition HOA were present. Ms. Rosengren stated that the homeowners association has increased dues by $95 per month over the past four years in an attempt to build up reserves for improvement projects. The HOA has not been able to collect the entire amount of the project but will be able to contribute approximately $100,000. City Council Work Session Minutes August 22, 2011 Page -2- The first step in the process is to adopt guidelines and a policy for creation of housing improvement areas. Staff stated that with the aging housing stock in the City of Lakeville, there is a good possibility that additional requests will be received in the future. Council received a draft policy which included six basic goals to be addressed. A survey of the homeowners showed approximately 70% are in favor of the proposal. Council Member LaBeau asked if the owners of the units which are rental properties are in favor. Josh Walker, President of the HOA, stated that four of the 52 units that responded are rental properties. Contact has been difficult with a few bank -owned properties. There are several repayment options. The HOA Board would prefer that the costs be assessed to property taxes. Council Member LaBeau stated that assessments cannot usually be assumed by a buyer. Mr. Olson stated that repayment details will be worked out later. Council Member Swecker wished to clarify that even if a project meets the criteria of an adopted policy it would not automatically be funded. Staff concurred that future requests would be considered on a case by case basis. Council Member Little asked about the City's options for financing and potential risks. Mr. Mielke stated that the CDA is set up to handle the financing and will receive a small handling fee. Council directed staff to bring the draft Housing Improvement Area Policy forward at the first regular Council meeting in September. ITEM #2 — Continue review of the Preliminary Budget. Several areas were highlighted by Finance Director Dennis Feller and department directors were present to answer questions as needed. Community and Economic Development: An increase in Other Charges and Services consisted of CDBG grant monies. The marketing study in 2012 and 2013 is proposed to be paid by the Liquor Fund. Membership in the newly formed Greater Minneapolis St. Paul Regional Economic Development Association is $25,000 but is anticipated to provide additional development opportunities for the City of Lakeville. Inspections Dept.: There are no significant changes compared to prior years and no capital improvements proposed. A decrease in the budget is due to less time being spent by the Fire Dept. personnel. Police: An increase in salaries is due to 2012 being the first full year for the Records Tech positions and some scheduled step increases. Lakeville will no longer participate in CJIIN, which will decrease the budget by $39,000. City Council Work Session Minutes August 22, 2011 Page -3- A new Police dog will be needed due to the retirement of police canine Shadow. This w ill result in a $13,000 budget increase. Gander Mountain is the most cost effective option for a police shooting range; however, an outdoor range is still needed. Chief Vonhof outlined some potential long range options. Currently $16,000 is being spent on officers' firearms training, not including travel costs and time away from police duties. Specialized training and equipment is being requested to investigate cyber crimes. The cost of the proposed system is approximately $13,000, not including training. The forensics computer is proposed to be paid for with Liquor funds. Chief Vonhof stated that three seasonal park patrols currently take care of high use park areas. An additional employee would ensure that a park patrol is dedicated to supervising the Casperson Park boat launch during busy times. Charging a fee at the boat launch has been proposed however, if there is a fee the DNR will discontinue their fish stocking program at Lake Marion, The boat launch attendant would be given other tasks during inclement weather. Parks: General Fund. Replacement of the wood retaining wall at Orchard Lake Park is requested. Council Member Swecker asked if this could be a -Tree Trust project; Steve Michaud will check. Council members received additional information and continued their discussion regarding park playground replacements. Council Member Swecker suggested adding an equal amount of the cost to the tax levy .each year. Council Member Little asked at what point is damaged equipment removed from the park. Michaud stated that manufacturers' recommendations are followed, unless there is broken or unsafe equipment, in which case it is repaired or removed immediately. Michaud also stated that the department is looking into the purchase of a plastic welder. Mr. Mielke stated that in the future the Council may wish to consider offering a park bond referendum but the playground equipment alone does not warrant asking voters for those funds. A future bond referendum would encompass a wider variety of projects, possibly even an update to the Comprehensive Park and Trail Plan. At this time, Council members were hesitant to budget for replacement of park playground equipment. Senior Center furniture: The proposed budget amount of $11,000 for furniture may not be necessary since there is $50,000 budgeted for furniture in the Heritage Center. Park Equipment Fund: A new John Deere tractor and a new showmobile are proposed to be paid with Liquor Funds. Council Member Swecker asked what the life expectancy of the showmobile would be. Mr. Michaud stated that the stage should last at least 20 years. There might be rental opportunities for a new unit, however, staff suggests that a qualified park worker accompany and take charge of the showmobile with any rental. Sponsorships in the form of advertising on the equipment might also be possible to help defray costs. City Council Work Session Minutes August 22, 2011 Page -4- Park Dedication funds from the Hosanna! senior housing project are being proposed to be used at the Heritage Center project. Council Member LaBeau asked Mr. Michaud if the Kenrick trail project could be at risk due to the potential lowering of Transportation Enhancement (TE) Federal grant funds. Mr. Michaud thought that could be a possibility but has not been informed of any cuts. Grants for the project are for acquisition only and the purchase amounts shown are estimates. A playground is being proposed at King Park. It is felt that the need for a playground has increased with the opening of the Miracle Field. One issue being studied as part of the developers' forum is the process for determining the appropriate rate for Park Dedication fees. Current rates are 10 of gross land or equal amount in cash; fees have not been adjusted for five years. In the current market it is difficult to determine a fair value of the land. Council Member LaBeau stated that buyers are not willing to pay what is needed for the developer to meet the fee. Mr. Michaud stated that the developers are asking for all fees to be reduced. A reduction in park dedication fees has been requested by Shamrock Development for the Crescent Ridge 2n Addition. The 2012 budget is based on 126 single family units. Council received an email from a Highview Heights resident regarding the decision on which ice rinks would be closed this winter. The resident requested that rinks be closed on a rotating basis so the same ones are not closed each year Mr. Michaud feels that the rinks that were selected to remain open last year are still appropriate based on their geographic location and use. The cost to put all of the closed rinks back into service would be about $36,000. Mayor Bellows stated that if the hockey rinks become over crowded it could pose a safety concern. Mr. Mielke stated that if Council believes they might wish to reopen additional rinks in the future, the cost needs to be accounted for in the preliminary budget. Communications Fund: Expenses in the budget include: Community survey; study to update meeting space at City Hall; community visioning process; technology and HVAC upgrades. City Council: No significant program changes from 2011. Council technology is proposed for Council to go to paperless packets. Two notepad computers are available for testing and Council members will take turns trying them. Additional units might be available through liquor premiums. City Clerk: The budget includes new election equipment for 2012. The City's share of the cost will be financed by the Liquor Fund. Mr. Feller recapped other equipment items and debt retirement which are proposed to be paid with Liquor Funds in Police Department, Fire Department, and Park Department. Genera/ Fund Balance: Council had previously expressed a desire to keep the fund balance at a 40 °I° level. City Council Work Session Minutes August 22, 2011 Page -5- Council reviewed the discussions and requested the following preliminary budget items: Add $9,831 for shooting range Continue research on voice recognition software for the Police Dept. Electrical Inspector — leave in the budget at this time Include $9,625 for Class A Fire Dept. uniforms consisting of a hat, shirt, and tie The following items need further discussion: Council training Playground replacements — add to September or October work session. Showmobile Community surveys Reconfiguration of City Hall to offer better meeting room potential. Individual Council expense accounts: The preliminary budget will reflect an increase of the Council members' expenses from $500 per year to $750 per year. ITEM #3 — Discussion of Preliminary Budget / Levy Adoption. Mr. Feller stated that due to the changes in the Market Value Homestead Credit legislation, the tax levy will be reduced by 2.8% in 2012 and increased by 2.6% in 2013. The Finance Committee will have its first meeting on September 8` and it is hoped that public Open Houses will be scheduled soon thereafter in order to provide information to residents and give them an opportunity to offer input on the budget. The 2012 -2013 Preliminary Budget will be on the September 6, 2011 Council agenda for consideration. ully submitted, ITEM #4 — Adjourn The meeting adjourned at 9:35 p.m. Respec Judi Hawkins Deputy Clerk Mark Bellows Mayor