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Home My WebLink About08-22-11 WSMinutes Lakeville City Council Work Session August 22, 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 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 " d Addition Townhome Homeowners Association to create a Housing Improvement Area. The townhome units in Niakwa Village 2 nd 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 2 nd 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 will 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 2 nd 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. General Fund Balance: Council had previously expressed a desire to keep the fund balance at a 40% 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. ITEM #4 — Adjourn The meeting adjourned at 9:35 p.m. Respectfully submitted, Ju Ilawkins Deputy Clerk Mark Bellows Mayor