[0:32] [Music] [0:54] Mayor Luke Hellier: Good evening and welcome to the December 2nd city council meeting. If you'd join me for a moment of silence and the Pledge of Allegiance. [1:12] Mayor Luke Hellier: I pledge allegiance to the flag of the United States of America, and to the Republic for which it stands, one Nation under God, indivisible, with liberty and justice for all. Okay, Ms. Orlofsky, roll call please. [1:20] City Clerk Ann Orlofsky: Michelle Volk? Councilmember Michelle Volk: Here. Ann Orlofsky: Luke Hellier? Mayor Luke Hellier: Here. Ann Orlofsky: John Bermel? Councilmember John Bermel: Here. Ann Orlofsky: Dan Wolter? Councilmember Dan Wolter: Here. Ann Orlofsky: Joshua Lee? Councilmember Joshua Lee: Here. [1:35] Mayor Luke Hellier: Okay, um we'll now move on to Citizens comments. This is an opportunity for those in the audience to address the council for up to three minutes and these are typically for issues that are not on the agenda. Yep, come on up if you want to state your name and your address. [1:56] Joseph Myers: Joseph Myers, 17678 Keering Trail, Lakeville, Minnesota. Good evening. [2:04] Mayor Luke Hellier: Evening, thank you. [2:06] Joseph Myers: Mayor, go ahead. Sorry, no, yeah, I know we're chatting so it's all good. Imagine you got a letter from the city of Lakeville and it said, "I'm going to send your case to the Lakeville PD and prosecute you in the court of law because you drive for Uber." Imagine if that happened to you. Sitting in my seat two months ago, that happened to me. I own an Airbnb in the city of Lakeville and I was... several emails were sent to me and messages were sent to me in regards to this. [2:43] Joseph Myers: So good evening ladies and gentlemen and thank you so much for letting me speak on behalf of short-term rentals in the city. Short-term rentals have become a modern solution to evolving travel, economic, and housing needs, and there are legitimate concerns about their safety, housing price increases, and all the like that you hear on your nightly news. We have run ours in the city for over three and a half years and had no concerns. It's families visiting other families and the cost of hotels are too expensive for them so they stay as a family in our home. It's individuals with weddings, coming to funerals, staying down the street being a part of the neighborhood, seeing if they could find Lakeville as a part of their home. There certainly obviously tourism opportunities, people visiting here from all over the nation and having options and economic options, not just the big hotel down the street at over $200–$250 a night during high season. They can stay in an entire home, a four-bedroom home for $200 a night, and we need to address these concerns responsibly. [3:30] Joseph Myers: I'm not asking for every single-family home in Lakeville to turn into a transient place and a place like a hotel. This has been addressed across the nation in big areas, small areas, tourist areas, mom-and-pop little small cities, big towns, and there is a decade of experience on how we can deal with this. This is a modern problem for a modern city and I urge this Council and this city to not just say no and to say: what is the opportunity here? How can we position our citizens to thrive? The other part is economic increase, interest rates increase, housing prices—we put our home on Airbnb not as a fourth business but as an opportunity for us to travel around the country and do ministry work. We could certainly put it on for a long-term rental, increase those rental prices as we know they're already increasing in the city. Airbnb gives an opportunity, an economic opportunity for us to travel and visit other places around the country. [5:01] Joseph Myers: So I urge the individuals on this Council, I urge the individuals in this city to take a modern solution to a modern problem. What's next? You know, Uber, right? We don't want those Uber drivers in our neighborhoods? DoorDash? [5:20] Mayor Luke Hellier: Give you about 30 seconds. [5:22] Joseph Myers: Thank you so much—oh, I'm in 30 seconds? I'm done. [5:25] Mayor Luke Hellier: Or yeah, you got 30 more seconds. [5:27] Joseph Myers: Oh, thank you so much. What's next? And I don't think this regulation stops it, I think it just moves it to the corners, to the sides. I do digital marketing for a business; I could run an ad that no one in the city of Lakeville could see and people could come in, I could pretend they're family and friends. I think we need a modern solution for a modern technology. Thank you so much. [5:48] Mayor Luke Hellier: Thank you, uh, Mr. Myers, appreciate that. If you would send me an email so we can follow up. My email is my first initial, last name @lakevillemn.gov. [6:04] Joseph Myers: Awesome, okay, thanks. We'd love to, thank you. [6:10] Mayor Luke Hellier: Is there any other public comment? Okay, moving on to item four: additional agenda information. Mr. Miller? [6:21] Justin Miller: Nothing tonight, Mayor. [6:23] Mayor Luke Hellier: Okay, now we'll move on to item 5A: our Parks and Rec quarterly report, and I'll turn it over to our Parks and Recreation Director, Joe Masiarchin. Good evening, Joe. [6:35] Joe Masiarchin: Good evening, uh, Mayor, City Council. Uh, thank you for um giving me the chance to do the quarterly report today. I'll start off by doing one piece here... I'm going to need that lighter. All right, so quarterly report. This is for the Parks and Recreation Department, September through November, um, so kind of our year-end report, um, so maybe a little bit longer than uh than our standard report. Starting with though, Administration: talking about some of the administrative work we've been doing for the department and some of those highlights we'll be covering today include uh construction for Grand Prairie Park. We'll be talking a little bit about the City's website, our uh web pages, as well as uh the upcoming strategic plan for the department and uh Grand Prairie Park construction. [7:15] Joe Masiarchin: Um, I'm actually not going to spend too much time on this slide. Um, in the picture though, you can see the the footings at Grand Prairie Park for the grandstand. This was taken approximately two months ago. Um, I'm actually going to go to the next slide where we've got a great drone shot of the park uh that Communications did for us and we'll use our laser pointer here. So in the background here you can see uh the um grandstand and baseball diamond; you can see the field; lighting is up. In the front you'll see the new uh retention pond—there's actually two ponds on site that are being used to irrigate all of the park, so that'll all be surface water that'll be reused. [8:02] Joe Masiarchin: The initial grading and entrance road off of 185th Street and parking lot is in for the um athletic deck. Um, in the background here you can see the uh cricket pitch which will also be used for lacrosse, soccer, football; the challenge course which is right in the front, that is substantially completed, it just needs the safety surfacing. And in this area we've got work done already for the splash pad, the playground and the main building. The main building uh will hold um a shelter, restrooms, changing rooms, that'll all be included in that space. You've got the central parking lot here in the middle, um, and then you've got athletic decks three, two and three. Those are identified primarily for football, lacrosse, soccer. [8:40] Joe Masiarchin: Um, this section here is the uh future skate park, um, so to kind of give you lay of the land, that'll hopefully be coming a few years down the road. Next to it, um, and this was taken a few weeks back, the building that's next to that uh between athletic decks 1 and 2 is the field support building. That's another shelter, shelter, restrooms, and it also has an office space that overlooks uh the fields that can be used for tournaments. Um, that is coming along pretty quickly as well. Uh, you've got the the westernmost parking lot here and then athletic deck one, which is identified mostly for soccer and lacrosse, and then the 10 pickleball courts. [9:20] Joe Masiarchin: Um, thought it would be kind of a fun way to see kind of the scope and scale of the project where we're at with things. As you know, the project has been delayed a little uh this year or substantially due to the weather earlier this year, but it has allowed us to get the grading completed, the retention ponds are in, all the stormwater and um and water has been added, so those utilities are done. So uh heading through November or December here, we'll be getting work completed on two of the buildings and then the site will go dormant for a few months. We'll be picking it back up in spring, um, but still on track for us to be able to um open portions of the park in 2025. The bulk of the park will open in '26 which has been our intention for six months or more. [10:15] Joe Masiarchin: So uh so that's Grand Prairie Park. Um, moving on though to park facility rentals, thought it'd be fun to kind of see where things are at this year since we've added Antlers Park and some additional facilities. So for fields, these are for straight field rentals, a little over $20,000 in rental revenue. The big component with that is uh that most of our athletic associations do not pay for fields um on an hourly basis or daily basis; they pay a once-a-season fee. So the bulk of that revenue actually comes through the Youth Sports administrative fee, which was a little over $80,000. Park shelters and buildings, over $100,000; out of that, uh, Jonathan Pavilion itself was around 50,000 of that total. [10:55] Joe Masiarchin: And this summer we had 321 shelter reservations at Antlers Park. There was a 35% increase over 2022. As you know, 2023 the park was uh offline as it was being reconstructed. Um, and that 35% increase is actually with two fewer operating months. Revenue for those shelter rentals from '22 to '24 um jumped from 17,000 to 30,000. One of the other projects that we've been working on administratively is updates to the uh City's website, so to our park pages. And our administrative assistant, Stella, has been working on adding new park pages to increase information for the public including data on park amenities. Construction maintenance history has actually been a really neat addition to the site as well as information on upcoming park projects. [11:50] Joe Masiarchin: To date she's added 67 new park pages, one for each of our park facilities, as well as five for uh Greenway Trails, um uh conservation areas and those items. More will be added over time. Uh, but one of the other new additions to the site: you can now track um the Adopt-a-Park program. As you know, um, we have a program in the city where um a family or an organization can adopt a park. By visiting the site you can actually see which parks have been adopted and you can also now request through the website the option to adopt your own. Um, so a great way for the community to get involved in our parks um and, you know, take care of your neighborhood park. [12:30] Joe Masiarchin: And the other big component, uh, we are working on uh a new strategic plan for the Recreation Department, um, so that is um to be the first strategic plan for the Rec Department in over 20 years. We're excited about that process. Uh, we're proposing utilizing the same uh strategic um plan consultant that we used for the arts center for the past two times so that we can uh have a similar style of a plan. Uh, but we'll be working with Parks, Rec, and Natural Resource Committee for two uh day-long strategic planning workshops that are uh tentatively scheduled for February. [13:00] Joe Masiarchin: And uh after that we'll be setting goals and then working with the consultant to do two different implementation plans: one for the Recreation Department and one for the Heritage Center, um, both working off of the same goals and initiatives but each needs kind of its own component to to push things forward. But we're excited to go through that process since it's been so long uh since we did the last one. Park Maintenance: quite a bit has been happening with our Park Maintenance division. Um, I already gave a little bit of an update on the process update, but as a reminder this is the new proximity lock system that is being implemented for all park facilities. Uh, this is replacing the um park keys that we've had for quite a long time. [13:45] Joe Masiarchin: And park uh renters, um staff, instructors, contractors will all now have the ability to access park buildings through a mobile device or they can pick up a card from the office, and that gives us far more control over the facilities. Allows us to be able to track hours, restrict access, um, there's some great updates coming with that. We expect that that project will be primarily complete um early '25. Cartegraph is another uh new addition. Um, Cartegraph itself is a software system that the city's been using for quite a while, but Park Maintenance will be utilizing it in a different way um and has started to implement that. [14:15] Joe Masiarchin: So we're using it for our maintenance requests; they come in from all over the city uh in a lot of different ways and this is now centralizing those requests, but it's also allowing us to track comments and questions from the public. So if there are, you know, regular comments about trail maintenance or trees along a specific route, we can now put that in as a note and track it by the facility, um, which will allow us to better respond to um future requests from the public. Kenmore Park playground: we've kind of touched on this but uh the Council approved the new playground at Kenmore Park, replacing a 25-year-old playground back in October. Um, that playground was removed and the new playground has been installed. [15:00] Joe Masiarchin: Uh, the safety surfacing needs to go in and it'll be um complete for the season in spring. We will need to do a bit of restoration work to restore the lawn and kind of the area around it, but that's coming along nicely. Uh, the Veterans Memorial uh had quite a few repairs that were done uh this fall. Park Maintenance did an in-house project replacing the concrete slab and the walkways around the memorial that's at Aronson Park, and that was done in time for Veterans Day. And the Fine Arts Building, um, that this was a two-phase project: it started with a landscape improvement done by an Eagle Scout who uh replaced the landscape block, the decorative rock, and replanted uh or planted new plants. [15:45] Joe Masiarchin: Um, and then our Parks Maintenance crew came in and uh poured some new pads for benches and some sculptures and those types of things. So it was a great um volunteer project tied to our park maintenance staff as well. And this should probably say winter is here, um, but the uh Parks Maintenance staff has been busy um closing our seasonal restrooms, putting portable restrooms in place, blowing out irrigation systems, um, inspecting and repairing the warming houses, prepping those to open later this month, and then also working on our snowmobile and cross country ski trails, uh inspections and tree trimming. [16:25] Joe Masiarchin: And moving on to Recreation, uh, quite a few events held this fall. Uh, some of these I think several of you have attended. Uh, so the Whodunnit Hike uh in September, 86 participants. Tour of Lakeville, that's the uh tour of our biking trails. Uh, the Fall Classic pickleball tournament with 27 teams and then of course the Haunted Forest with over 1,800 participants. And fall programs for Recreation are doing really well uh as well. Um, the nature programs at Ed Mako Environmental Learning Center are new this fall, uh, as if you remember that's um open now for the first time going into fall, so 193 participants there for the youth programs. [17:15] Joe Masiarchin: Um, the youth sports, 64 participants. Yoga, which is also held at Ritter at the Ed Mako Environmental Learning Center, 41. And the Music Together which is held at Antlers, 41. And Recreation revenue, uh, so revenue to date, 368,000. I won't go through all the details on this, this is just kind of a snippet of um some of the programs, um, but not all. Um, just kind of gives you a little bit of a highlight. And the Recreation Department has also uh recently implemented a new survey program. So after every class, uh, participants will now receive a survey. Uh, that'll help us track um cost of programs, customer service, uh facilities... there's all kinds of things that we're actually working on tracking through that. [17:58] Joe Masiarchin: And additionally, uh, participants—or sorry, uh, renters who utilize the John Henon Pavilion are also now receiving a survey. Um, those have been invaluable for us already with the rentals at Antlers. There's um items that we're tweaking, adjustments, um, common things like, you know, cleaning and some of those things, but it's been great feedback so far. Uh, and the Winter/Spring brochure went out in November. Um, in that brochure—and registrations have started for winter/spring—in that brochure there were 21 new program offerings. That's uh 41 new sessions, it's a 25% increase in our new programs over last year's new programs. [18:40] Joe Masiarchin: Um, and then that includes an expanded volleyball and pickleball leagues and also new Visual and Performing Art programs at the Arts Center. And upcoming events: there's quite a few coming for the Recreation Department. Santa's Secret Store this weekend, um, Illumination Walk, um, Pint-Size Proms—but check the website, there's a lot of great things coming there as well. And moving on to the Arts Center, um, Art Center uh hosted the annual Art Festival September 21st and 22nd. I think again several of you were there, so thank you for that. Um, a great event, also record-setting attendance for them. The picture though is really what I'm going to focus on: that's the new community art project that was donated by the Friends of the Arts Center. [19:25] Joe Masiarchin: It was designed by artist Shae Maze, um, from Minnesota, and it was painted by uh the participants at the festival. That has now been installed uh as part of that Eagle Scout project outside of the Fine Arts Building. What a a fun new community art um installation. Uh, the fall Visual Art programs are going quite well uh and continuing to set records. Uh, the pottery programs... and our fall fall season for the Art Center is really October, November, little bit of September, so this is really kind of a two, two-and-a-half month snippet of our programs. Uh, but pottery registrations, 202 participants; specialty workshops, 84; um and youth workshops, 65. [20:12] Joe Masiarchin: But things are going quite well over there. Uh, Miracle on 34th Street: this was the latest production done by Expressions Community Theater that ran for two weeks. Um, it is their best show post-COVID. Uh, there was a little kind of dip after COVID so they're back into the thousands for ticket sales, which is great. A little over 14,000 in ticket revenue. It's actually the third best-selling show um in their 18 years of existence, so it was a pretty solid show for them. And for the Performing Arts series, also really ramps up in fall. Um, a couple of these I'll just touch on. Tribute to Johnny Cash, uh, that was a new event, 142 tickets. Cinderella, which was by uh Twin City Homeschoolers for the Arts—that's a rental but a partnership—1,700 tickets sold. [21:00] Joe Masiarchin: Uh, and then Bridge Over Troubled Waters, that's uh with Collective Unconscious, that's a a really popular band that uh performs occasionally, 371. And the Performing Arts revenue, uh, total to date 622,000. Uh, again kind of a breakdown, a snippet, a snapshot of of where some of that revenue comes from, but this isn't all of the revenue lines. It doesn't include pottery and some other items. The total does, but not in the breakdown. And community art: we recently installed a new uh public or um public art bench at uh Casperson Park. This was funded by the Friends of the Lakeville Arts Center and is dedicated to our former Parks and Recreation Director, John Henon. [21:50] Joe Masiarchin: Uh, it's set back from the performing art stage which was one of John's projects, um, and is kind of a fitting spot for that bench. So we've told him he's got that reserved for Live at the Lake next summer. Uh, as a reminder: Holiday Art Sale and Empty Bowls fundraiser, that runs this week, so Thursday, Friday, Saturday. Um, that'll take place showcasing our local artists and talent. Great way to help support local artists and also uh the local food bank. And moving on to Active Adults: Active Adults held their Belgian Waffle Breakfast fundraiser, uh $10 tickets, um 400 400-plus tickets sold, um but that was a a great event for them that they hold every October. [22:30] Joe Masiarchin: Uh, the other fundraiser that they're currently doing to help support the facility is the Metro Dining cards. That's a $35 sale, they've sold 267 boxes of those, um but is another great way to help support the facility. And this event we had to highlight, uh, it's a a new one for the Heritage Center: it's the Denim and Lace Dance. Uh, brand new, went quite well though; it was the first time that we've done it again, and this was in combination with the Apple Valley Senior Center, but 50 Active Adults that attended that and feedback was really positive. Uh, popular programs for the Heritage Center, and these are not programs that are included in the membership, so these are separate registrations. [23:10] Joe Masiarchin: There's a bit of a distinction with that, so I wanted to make sure to highlight that these programs all filled the capacity, and they included uh the Intro to Calligraphy, the Paint and Treat, uh Diamond Dots Workshop, Sound Healing, and the Lakeville Luncheons, um, but those are are quite popular over there. And current membership for the Heritage Center has reached an all-time high, um, breaking last year's record. Uh, so 1,597 memberships sold to date. Last year's record uh high was 1,322, so a pretty decent increase over a year ago. And trips: the Heritage Center does quite a few trips annually. Here's kind of a highlight of uh some of the trips that they did here in uh the fall including uh the Mankato History Tour, um the International Owl Center, and uh Stillwater Trolley. [24:00] Joe Masiarchin: And then just a couple of events coming up for the Heritage Center: so their Bake Sale is this Saturday. Uh, Holiday on Main is on Saturday so you'll see coordination between those events, Heritage Center, Arts Center events—it's going to be busy downtown, but such a great event. Uh, and then December: the Lakeville Luncheons, uh the Holiday Social in December, and then Grandpa Joe's Candy Shop. And with that, I'll stand for any questions. [24:08] Mayor Luke Hellier: Very good. Any Council questions, comments? Yeah, I said it was gonna be long—that was long! It was good. So I have a question for you about some of the feedback from Antlers. Um, based on that, is there a sense that we're going to match the amount of events for next year, or was it just because the first year we had a lot, or what... what's kind of your thought on reservations for next year? [24:16] Joe Masiarchin: I think reservations will be uh pretty heavy again for Antlers. Um, we're sticking with the same reservation process that we did last year which will release uh reservations for all of our park shelters January 1st. [24:35] Mayor Luke Hellier: Okay. [24:36] Joe Masiarchin: And that includes Antlers. Um, and at this point I think we're seeing, you know, from last year's feedback it's going to be pretty pretty busy. I wouldn't wait if you want to shelter at Antlers. [24:45] Mayor Luke Hellier: Yeah, from his mouth. All right, thank you, sir, appreciate it. Thank you. Moving on to item six: our consent agenda. Mr. Miller, any items you wanted to highlight? [25:01] Justin Miller: Thank you, Mayor and Council. Two items tonight: item 6E is a facility use agreement with Allina Health System. Uh, for several years we have leased space at our fire stations to Allina—to the Allina Health System—to house our Allina ambulances. This is a two-year extension to that agreement. And then item 6H is a mowing contract uh for county and city boulevards. This is an extended or expanded contract that we do to um—that the county reimburses us for—so that we can mow the boulevards a little bit more consistently than what they get to in the summer. [25:35] Mayor Luke Hellier: Okay. Council, any item they'd want to discuss or highlight? If not, I'll take a motion to approve the consent agenda. [25:40] Councilmember Dan Wolter: I'll move approval. [25:42] Mayor Luke Hellier: Is there a second? [25:43] Councilmember Joshua Lee: Second. [25:44] Mayor Luke Hellier: That was a tie, that's a photo finish. Uh, and any further discussion about the consent agenda? And all those in favor say Aye. Councilmembers: Aye. [25:47] Mayor Luke Hellier: Opposed? All right, consent agenda is approved. We'll now move on to 7A: the public hearing on the adoption of the fee schedule by ordinance, and I'll turn it over to our Finance Director, Ms. Stahl. [25:54] Finance Director Julie Stahl: Thank you, Mr. Mayor. Um, tonight we are we are approving the fee schedule for 2025. This is a requirement by state law that we present this in a format where there can be public comment and then the the Council will move to approve it. Um, it does establish all of our fees uh for the 2025 year and we annually review this to make sure that we're um matching the cost that it it is that we incur to provide the services for these um items, and that we're also keeping things in line with what our budgets are set for. Uh, the proposed changes are consistent with the discussions that we had at the work session on October 28th. [26:40] Julie Stahl: There were two minor changes um that staff found since that October 28th work session. Um, number seven, it was updating the rates at the John Henon Pavilion rental—went from the 2-hour minimum to a 5-hour minimum instead of 4-hour minimum. The cost did not change; it's just um making sure that we're maximizing that rental time. Um, and then also change was uh 9B, and that was the increase to the Lakeville Youth Athletic Association participation fee um going from $200 per field per season to $250 per field per season, and that's reflecting the market rate adjustments. [27:30] Julie Stahl: So those were the only changes to what Council saw at the October 28th work session. Um, all of the notes from the increases and and changes... and again, it's it's matching our our cost-of-living increases for staff or um identifying things that are actually taking more time to do, so we're trying to make sure that we're capturing all of those costs. Um, just a couple other things: the um the permit fees saw an increase for the first time—they have not increased them in—and um the staff did a comparison of the neighboring city permit fees to make sure we were in line with our our neighbors and that's what those changes were reflecting. Um, and with that I'll just open it up to if there's any other questions. With there's so many items in here so um... [28:15] Mayor Luke Hellier: Council, any questions? Thanks for clearing up the changes, yeah. So this is a public hearing—is there any public comment about the fee schedule? Okay, with that I'll take a motion to close the public hearing. [28:30] Councilmember Michelle Volk: I'll make a motion to close the public hearing. [28:32] Mayor Luke Hellier: Okay, is there a second? [28:34] Councilmember Dan Wolter: Second. [28:35] Mayor Luke Hellier: All those in favor say Aye. Councilmembers: Aye. [28:36] Mayor Luke Hellier: Opposed? Okay, public hearing is closed and I will take a motion to adopt the fee schedule unless there's any further discussion. Councilmember Bermel? [28:44] Councilmember John Bermel: I'd like to move to approve the ordinance adopting fees and summary publication of the ordinance and move to approve the resolution adopting the 2025 fee schedule. [28:54] Mayor Luke Hellier: Okay, is there a second? [28:55] Councilmember Joshua Lee: Second. [28:56] Mayor Luke Hellier: Any further discussion on the fee schedule? Okay, seeing none, roll call please. [29:00] Ann Orlofsky: Volk? Michelle Volk: Aye. Ann Orlofsky: Hellier? Mayor Luke Hellier: Aye. Ann Orlofsky: Bermel? John Bermel: Aye. Ann Orlofsky: Wolter? Dan Wolter: Aye. Ann Orlofsky: Lee? Joshua Lee: Aye. [29:08] Mayor Luke Hellier: Okay, very good. We'll now move on to the public budget meeting for the 2025 property tax levy and 2025 budget. [29:16] Julie Stahl: Thank you, Mr. Mayor. Um, this is a state um Minnesota statute requirement that we do this. We hold the public hearing prior to the adoption of our 2025 budget and our 2025 tax levy. Um, again, we're providing taxpayers the opportunity to ask questions and present comments at the public hearing. And after we do the hearing, um, Council will take uh close the public hearing and then uh decide on how we want to move forward with the adoption of the resolutions. Uh, we did present the 2025 budget and the tax levy at the council work sessions in in August and November, and then we also presented at the council meeting that we adopted the preliminary levy on September 3rd. [30:05] Julie Stahl: So with that I will start. I want to first off thank everyone—staff, council—for all of the input. This is a large and lengthy process; we start in May and it goes for eight months up until December until this this final step. Um, so I appreciate all the hard work; there is lots of thought and very careful considerations when we are looking at all the different items in our budgets. So for 2025, we are looking at a total tax levy of 48,815,000—that is for all the funds. This is a 12% increase over a 2024 Levy, uh, which equates to 5.2 million roughly. This is again providing funding for our operations, our capital or maintenance, and our debt service. [30:50] Julie Stahl: This chart is showing the breakdown of our Levy. We've got the general fund levy is proposed to be at 32,977,000, that is roughly an 8% increase over last year's levy. Our pavement management fund will be getting 1.8 million, that is no change from last year's levy. Our Park Improvement fund, 450,000, up just 100,000 from last year. Trail Improvement fund is 550,000, which is 150,000 up from last year. Technology is flat at a $300,000 levy. And then our debt service funds, um roughly 9.9 million for our existing debt service funds that are Park Referendum Debt Service, which we are showing separately because of the impact to the homeowners. [31:45] Julie Stahl: Um, this was the park referendum that was voted on in November of 2021 and the taxpayers said yes to it. We issued the last um set of bonds in 2024, so what this levy, this 2.5% levy increase, is fulfilling that last big jump in the the levy to cover those the last set of bonds that we issued. So looking at our community growth um over last year: roughly $340 million growth in our tax value or 2.8%. Um, that is broken down... you know, if we are looking at how much that present gives us in property tax dollars, it's roughly a million dollars. Um, valuation growth on the existing property, so not new construction, was at 60 million or 0.5%. So overall, um, the new construction of 2.8% and the valuation increases of 0.5% give us an overall tax base growth of 3.2%. [32:44] Julie Stahl: This graph is just showing the market value new construction that we've added over the years. If you look back into 2013 and um how much we've grown since then... we topped out in 2023, 2024; that was um our biggest growth so far. There's been a little bit of a lull that we're expecting, um, and it has the the new development has slowed in the last year as you probably realized. Um, we are estimating 2025 new construction um to be a little less, so this is again projection for 2025, but that's what we are looking at. [33:40] Julie Stahl: This breakdown um shows you what the new construction consists of. So we've got residential obviously is our our biggest growth factor in um 2023 and 2024, quite a ways up there, $250 million worth of new construction for um residential homes. Um, commercial is the red uh the red columns, uh and then industrial are the green columns, and the purple columns are apartments. So we've seen some apartment growth in the last few years here um as those new developments come in. Looking at our tax capacity rate, which is our tax base divided by all these wonderful properties are paying to it... our tax rate um at its highest was 41% back in 2013. Um, as uh the growth has absorbed a lot of our increases over the years, it would kept dropping and dropping. [34:40] Julie Stahl: We are now um in another growth stage with adding uh Public Safety costs that are driving it up, but also those Park referendum bonds are bumping it up as well. Um, so we're looking at a tax rate of 32.6% for 2025. The impact on the median value home for Lakeville with that increase um or that tax rate: our median value home is now at $450,000 roughly, and it would be $110 annual increase for the city portion of their taxes. If you're looking at a million dollar commercial property, um they averaged about a 10% valuation increase, they would be seeing a $1,100 annual increase in their City portion of taxes. [35:35] Julie Stahl: And just wanted to show this um graph because I think it's important to keep in mind that in the Dakota County cities, Lakeville is still the lowest tax rate. Um, and what this chart is showing you is what the city taxes would be at any of these other cities um with that median value home. So for instance, Lakeville, the $450,000 home, the taxes are $1,400 a year. Um, you go to Eagan, that same home would cost you $1,600 a year, so roughly $150 more. Um, if you put that home in Burnsville, you'd be paying $2,000 a year in the city taxes. All the way up to—I'll look at Hastings—that same home would be $2,600 a year in their City portion of the taxes. So um just wanted to bring that to light because I think we lose perspective of how fortunate we are that Lakeville is still the lowest tax rate of our neighbors. [36:37] Julie Stahl: Breaking down the general fund revenue by source: our total revenues are 44 million. The biggest portion of course is our property tax revenue at 33 million, which is 75% of our revenues. Uh, the next two smallest categories are um both at—well, intergovernmental actually jumped up to 8% this year, 3.5 million. Um, part of that is the the SAFER grant that we got, and so 1.5 million is within that intergovernmental revenue number. Charges for services and licenses and permits are both at roughly 7% at a little over $3 million each. And then we've got um court fines, miscellaneous, and interest income that falls into that category at 2%, so that's roughly 800,000. And then our transfers in are just 1% for 2025 at 170. [37:23] Julie Stahl: As we continue to structure our fund balance and make sure that we fall within our policy guidelines, we the city has a financial goal of staying between 40 and 50% of general fund fund balance. This um helps us keep our AAA rating with Moody's, and which is very important to us as we continue to issue bonds. Um, for our target range for projected year end 2024, we are looking at—I make sure I get the right numbers because we got—they're right under the 50% mark. Um, so we're projecting at the end of 2024 to be at a 49.4% fund balance ratio and uh 2025 projected fund balance ratio of 48.7%. [37:55] Councilmember Dan Wolter: Julie, the um the big spikes from '20 and '21, is that is it ARPA dollars? [38:12] Julie Stahl: ARPA and CARES money, yes. Yeah, y. Breaking down the um general fund expenditures by a function: Public Safety continues to be our our largest investment um in the city. Their uh Fire and Police together is at 53% of our total budget for the general fund at roughly 22.8 million. Um, Police is 17 million of that and Fire's at 5.6 million of that total. Public Works is at 15% of our total expenditures, so they are 6.7 million. General Government is at 8%—I mean 18%—at 8 million, and then Parks and Recreation is almost 6 million at 14%. [38:58] Julie Stahl: Some of the factors or things that went into the general fund this year for 2025: we did have the new positions of the Fire... um we did get the SAFER grant, yay, um the second go-around. So that is going to provide for um the salaries and benefits for 15 firefighters. Um, it doesn't pay for any of their gear or any of the other costs that we need to put into place for those, so the city is having to carry those what I'll call soft costs. Um, Police: we've got four officers also added in 2025; two of those are cadets that will be partially offset with a grant. Um, so those are the the new positions. [39:35] Julie Stahl: What we're also seeing in 2025 is realizing the full year expense of what we added in 2024. So we added our first six full-time firefighters in March of '24, and we also hired two officers um in November of '24. So we're going to realize the full year of those expenditures in '25. And we also then had a 3% cost-of-living adjustment and step increases. And as you well know, um staffing is our our biggest cost and when we provide to provide all the services that we do... [40:15] Julie Stahl: We're looking at the Utility Fund budgets: we factored in the cost for the 2025 Street reconstruction project, we're covering ongoing major maintenance. We did not issue, or will not issue, any new debt for the utility funds. Um, we did have a slight rate increase um because of the wet spring and summer that we had; the 2024 revenues came in lower lower than expected. Our Liquor Fund: we are uh the Keokuk store is actually in its fourth year, I know it's hard to believe that it's it's already four years. Um, we are keeping the sales conservative in our budget for 2025. Uh, they've been kind of flattish, I'll say, in 2024. Um, the liquor fund does include debt for the Keokuk and the Galaxy store locations. [41:00] Julie Stahl: And we also um increased the transfers out of the liquor fund to 1.74 million, and what that is doing is helping us keep the levy portion as low as possible by using those liquor sales um that support. So some of the things that we are using that liquor fund support for: the Debt Service fund on the police station which ends in 2032, so that's 400,000 coming directly out of the liquor fund; the debt service on the Keokuk liquor store of 347,000; equipment fund—we bumped that up this year um to 900,000, um that we're growing, the equipment needs are growing and it's just another way to keep the levy portion of that down. Our Technology fund is roughly at 67,000 and then we have the general fund with a fireworks donation to the um July 4th celebration of 30,000. [41:55] Julie Stahl: Things to keep in mind as we're... the things that would be impacting our property taxes: obviously there's the other changes to the tax levy, so you've got the schools and and the county with their um um taxes as well, and those um little those small districts as well. Uh, changes to individual properties values um they're based on the value of the homes as of January 2nd, 2024, um and there is always this look-back period: the sales are looking back to October of '22 and and September of '23. So from that time period, those are the sales that the county assessor is looking at in adjusting any of the market values for the current home base. [42:45] Julie Stahl: Um, our median value home actually uh just increased that small 1.28% for Lakeville, and I mentioned this before, but our changes to our overall taxable market value for the whole city is a 3.2% increase—so not large. Um, and 2.8% of that was new construction. Again, the valuation increases for the existing homes quite small, 0.48%. Another um interesting thing that was thrown into it this year that benefited a lot of homes—um it kind of hurts the businesses—but the state changed their formula on the residential Homestead market value credit. So more taxpayers were receiving that exclusion from their market value, that brought down to their taxable mark taxable value. [43:37] Julie Stahl: Um, it gets... I put the formulas up here, it's kind of... um this is how they laid it out. So basically um for a home that's... you used to be capped out at a $414,000 home, now it caps out at a home that's at $517,000. So say a home that was $450 last year, um they would not have seen any Homestead market value credit this year; they would see that on their 2025 proposed taxes, they're actually getting a credit that brings down their taxable value. Um, looking at the whole the overall average increase for the county Dakota County, the average residential tax their total tax only went up 1.45% and for commercials that average the total to total tax went up 8%. And that's all data from Dakota County. With that I will open up for any questions or um open up for the public hearing. [44:20] Mayor Luke Hellier: Any questions before the public hearing? Okay, this is a public hearing—any comments related to the budget and tax levy? Seeing none, I will take a motion to close the public hearing. [44:25] Councilmember Dan Wolter: I make a motion to close the public hearing. [44:28] Mayor Luke Hellier: Okay, is there a second? [44:29] Councilmember John Bermel: Second. [44:30] Mayor Luke Hellier: Okay, all in favor say Aye. Councilmembers: Aye. [44:31] Mayor Luke Hellier: Opposed? Okay, the public hearing is closed. Any further comment from Council? [44:45] Councilmember Dan Wolter: Thank you for the... it's a like you said a long process and many conversations went into this and uh I think if this is your first glance at the budget, this is a very complex series of decisions that goes into uh what next year's budget is. Something you didn't include but as someone on the Personnel committee I think about is the the premiums for health insurance and uh the City's ability to stay competitive with contributions to health uh health insurance premiums. [45:11] Dan Wolter: Um, thankfully our staff is is very healthy um and so our premiums this year were at a remarkably low low percentage uh in terms of an increase for next year, which I I think is helpful for our overall budget as well. So uh thank you to all of our staff for being healthy um and I hope that continues to be true um but um also wanted to just mention that in the sense that we've been able to then increase and be more competitive in our contributions to health insurance plans for our staff in the in the process of that too. So just an add to the budget, thank you. [45:50] Mayor Luke Hellier: We got other questions or comments about the budget? If not, I'll take a motion. It's pretty lengthy. [45:59] Councilmember Joshua Lee: Joshua, move to approve four resolutions: one, adopting the 2025 property tax levy; two, adopting the 2025 budget; three, authorizing ordering fire and police vehicles and equipment; and four, authorizing the 2025 purchase and disposal of vehicles and equipment. [46:18] Mayor Luke Hellier: Is there a second? [46:25] Councilmember John Bermel: Second. [46:26] Mayor Luke Hellier: Okay, any final discussion on the budget? I'll just add again my thanks to you and your staff and all the directors and everybody for putting this together, and I really appreciate the way that you lay it out so it's hopefully easy for the public to understand where their dollars are going. Um, and so I think that's that's really important. So thank you and look forward to a prosperous 2025 at building permits—that's my prediction. Um, with that I will take a roll call please. [46:44] Ann Orlofsky: Bermel? John Bermel: Aye. Ann Orlofsky: Wolter? Dan Wolter: Aye. Ann Orlofsky: Lee? Joshua Lee: Aye. Ann Orlofsky: Volk? Michelle Volk: Aye. Ann Orlofsky: Hellier? Mayor Luke Hellier: Aye. [47:04] Mayor Luke Hellier: Thank you very much, passes. We'll now move on to our utility franchise fees and um our Assistant City Administrator, Mr. Kuennen, will be offering uh this up. And just as a reminder for everyone: this is a follow-on from the last meeting where we had uh public comment and information, so this now allows the Council to discuss it and I'll let you obviously tee it up. [47:30] Assistant City Administrator Allyn Kuennen: Thank you, Mayor, City Council. As the Mayor mentioned, tonight on your agenda there is a review of the four ordinances that would be implementing utility franchise fees. Um, as we mentioned at the last meeting, the city currently has franchise agreements with the four uh utility uh providers in Lakeville: CenterPoint, uh Minnesota Energy, Excel, and Dakota Electric. Um, the agreements allow utilities to install their facilities within the city's right-of-way and um in addition to that, under state statutes, uh the cities can impose a franchise fee to um charge the utility companies which ultimately does get uh charged back to their customers, our residents, um a franchise fee. [48:18] Allyn Kuennen: Um, after reviewing the uh multiple different levels, City Council landed on the $6 per uh residential home uh for each utility: so one for gas, one for electric, for a total of $12 per household. Um, the fee for commercial industry users will vary based on the usage and uh this chart kind of lays out examples of those um levels and usage uh fees. Uh, the fees would be used for um two uh upcoming projects. Uh, the first one is part of the transition from uh uh paid-on-call to paid-on-call/full-time hybrid uh fire department uh uh uh manning the the fire stations. [49:04] Allyn Kuennen: Um, with that, a lot of renovations and improvements need to be made to the four existing stations and possibly a a a construction of a—or a combination of uh and construction of a new fire station. Um, those costs would range between 60 to 68 million. The second project is the First Center; this would be a uh First Responders training facility that would be located on the South Metro area, available to everyone in the South Metro as well as the southern outstate area. Um, we currently have 7.9 million in state and federal funding for that project um and the total cost of that is a 22 to 24 million. Um, the franchise fees would go towards the $15 to $18 million gap we have right there right now. [49:52] Allyn Kuennen: So the timeline: the state statute requires a 90-day period prior to City Council adoption of the ordinance. Um, that that uh 90 days provided us a a period where we can um uh introduce this to the utility companies as well as the public. We did this through social media on YouTube posts, Facebook, uh Instagram um starting in uh August and September. Uh, the website: we created a separate page in August for informational page for the franchise fees as well as a link to that uh page on our front homepage that kind of bring that to people's attention as they're visiting our website. In addition, the news: we had newspaper articles and a newsletter. Uh, we had a half-page article in the August newsletter that went out to every household, as well as there was an article in the Sun Thisweek in the 26th of September and the Mayor had a guest column in November. [50:38] Allyn Kuennen: Uh, in addition to those public uh informational opportunities, we also reviewed this uh at multiple public meetings for City Council in January, February, April, July, and again as we mentioned in November. Finance Committee reviewed this multiple times, as well as the Economic Development Committee, and also the Chamber of Commerce uh reviewed this at their issues committee as well as sent out emails at two different times to their memberships. So the next steps include um this meeting; the Council will uh consider the four ordinances on the agenda and uh if uh Council does approve those ordinances, um the next 90 days uh uh information period kicks in. And that would start uh as we notify the utilities and the PUC on December 4th, with implementation occurring in April of 2025. Um, just one word of note: if Council does approve uh the ordinances, we ask that you break the motion up into two. Um, one would be for the actual ordinances themselves and the second would be for motion for the uh summary of ordinances for publication. And staff was available for any questions. [51:40] Mayor Luke Hellier: Okay, very good. Um, Council discussion? As I sent a message, I apologize for not being here at the meeting a few weeks ago, but I did review it and heard the public feedback and did respond to those who were in attendance but wanted to open up the floor for discussion on this. We've talked about it uh at work sessions and I've had a lot of input from everybody, but wanted to have this discussion um before we move forward. Dan? [52:11] Councilmember Dan Wolter: Um, I think in making the decision on any kind of new tax or fee, um you need to look at the rationale for the revenue, and I appreciate Allyn's uh pointing out the the logic uh and and the thought behind the fee here. Um, I think um this is a community that has a strong history of supporting Public Safety, um and and and to me that is the overarching issue uh here. We are in a good position in terms of our Public Safety resources, but with the growth that we've had as a community, I think we need to make critical investments uh to keep pace. [52:57] Dan Wolter: It's our our newest fire station is 20 years old which uh might not seem that old to a lot of people, but a lot has changed in 20 years in terms of the occupational health and safety for firefighters and and other things. Also the First Center—our our law enforcement and public, uh excuse me, first responder training facility—I think is going to be an amazing community asset and a regional asset. Uh, so I think the the purpose of the fee is is noble. And um I wholeheartedly support that. Having just gone through a campaign where I talked to thousands and thousands of people, Public Safety is always at that uh top uh top tier of of reasons people choose to come to Lakeville, the reason people like living in Lakeville, so I think that is that that is absolutely critical. [53:58] Dan Wolter: I want to just address a couple uh of... and also just want to thank—in the brief time I've been on the Council, this has been the most um rigorous issue in terms of people uh reaching out and expressing their their concerns or their questions about it, so I appreciate everybody's weighing in on this topic. I want to address a number of the a couple of the complaints that people have. I um I think a legitimate concern is raised about the fairness of the fee, um but I want to push back on that. To me, a a flat fee where everyone pays the same amount for 20 years is the definition of an equitable and fair system. [54:28] Dan Wolter: I get I I understand there's a legitimate point there that it should be more progressive and that people with higher home values should pay more, but to me this also helps widen and expand the tax base which I think is is is another uh quality uh that's important for it. Those that just sat through the budget presentation will see that we have limited options in terms of revenue uh for the City. We've got fees, we've got uh the property tax levy, um we don't have a local option sales tax option. We don't... also the other thing that that needs to be noted: we get no Local Government Aid. Uh, the state of Minnesota spends a lot of money uh supporting local government activities but but we get none of that uh because of the way the formula is set up. And we can only sell so much liquor. [55:15] Dan Wolter: Um, so I I I I think so to me I think the the mechanism, although imperfect, uh works in this circumstance. The the other question: why not just put this on the levy? Um, I have a fundamental disagreement. I think that the the current property tax system is either fair or transparent. Um, yes, we get our statements in the mail that show us what the valuation of our house is, but nobody explains what that is. Uh, mine went up $50,000 one year and then down 15 the next, and it's it is it's kind of this mysterious system. So I just reject that notion that that is somehow more inherently uh inherently fair. Um, uh you know, no one likes to support to start a new tax—this is a new tax. I know it's a fee, but to me it is it is a new p- new new tax. But to me the nobility of the overarching public safety goal um is the overarching factor here. So that's all I've got, thank you. [56:10] Mayor Luke Hellier: Other comments? Yeah, John. [56:12] Councilmember John Bermel: Um, yeah, I I agree in terms of the use for the uh the funds. I mean back when we started talking about this in February, and we've been talking about it publicly for for quite some time now, uh you know we had discussions about the possibility of a franchise fee we could use that for. Um, one of my uh comments was: I I would consider it, entertain the idea uh based on the uh the public safety uh uses for the uh fire department and for the uh First Center. And both are important. Uh, the fire department is it's a critical need. Uh, the First Center is also uh in this day and age with training, um and to have that right here in our community... I I don't know if people understand what a benefit that is for our law enforcement, that we don't have to plan a whole day of moving half the department someplace to train and then doing the other half at some other time. [57:15] John Bermel: So they're both very valid. Uh, so for me I was willing to entertain it uh based on its use for the public safety funding and based on the uh the fact that I I did not want this to be a continual fee that would go on forever and ever. So use and uh and timing. Uh, in terms of the timing I'm I'm a little concerned about that. Um, the way debt works, if you take that on for 20 years, eventually that debt does come to a a firm hard end, and as it matures and gets closer, it also becomes easier to manage uh through payments and whatnot. Um, so for me, a concern with this fee is is how the fee interacts at the end of the life of the debt. And the problem is is I'm not going to be here to hold myself accountable for how that looks. [58:15] John Bermel: Um, so there's two possibilities: one of them is uh that the uh the fee would stop; the other one is is that the fee would continue and outlive uh the intent of... at least my intent—I can't speak for my colleagues—but my intent would be to have that fund specifically the public safety for a certain period of time. I'm not going to be here in 20 years; I'm not convinced—as a matter of fact, I think it's more than a possibility, I think it's a probability—that this fee could continue on uh way past the uh amount of the the life of the debt that we're issuing. [58:55] John Bermel: Either way we cut it, the debt's going to be issued. So this isn't a question of whether we issue less debt or more debt, this is a question of how we pay that and how we uh we uh fund uh the payment of that debt. So I've heard a lot of feedback once again out on the campaign trail, um and most people are just like my my colleague Councilmember Wolter said, most people are going: "You know, it's an issue of fairness," and we have a levy system that is transparent and in place. And the one thing that I appreciate about the levy system is there's a beginning and there's an end. And I was very honest with people on the campaign trail: the next few years for this this community are going to be really tough in terms of of finances because of our growth and catching infrastructure up to that, but it's not a forever thing and eventually it will come to an end. So for me um I'm just worried about the end-game on this and I'm not confident it's the best thing for our community because of that. [59:45] Mayor Luke Hellier: Other comments or... yeah, Michelle. [59:54] Councilmember Michelle Volk: Um, it'll be short because I've made a lot of comments since February, um and I still haven't changed my mind. I'm not for um this fee. And the reason being is a couple of things is that um now it's another burden on um churches that didn't have this burden and they're already strapped for funds in a church. Um, it's kind of like a double tax to the citizens of Lakeville, only in the the factor that the school district would now be paying these fees, and of course that gets passed on to us as the residents of of the school district. [1:00:40] Michelle Volk: Um, so um and I honestly believe, yes, we're going to have a couple of tough years here, um but I and I wholly agree that Public Safety is the number one responsibility of this Council. I just believe that we should be bonding um and not having a extra fee. Um, for me personally, it like leaves wiggle-room in the regular budget for increases, where if we had to have the um debt that we're paying for on the bonding, we're looking... I'm not saying that we're not looking harder at our budget, but it causes future Councils over the next 20 years really look very hard at the budget and make sure that we're keeping costs down as the increases rise with the um debt for the necessary facilities. [1:01:50] Michelle Volk: Um, so those are just kind of my reasons; they really haven't changed. And I think I am just really grateful that that the public weighed in. Um, and I am really grateful to our Communications Department for how hard they worked at trying to get the information out there so that the public would weigh in. And I I haven't had—honestly, I didn't have anybody call me up and say, "Oh, Michelle, this is a great idea, go for it, change your mind." So um so for that reason I'll be voting against the franchise fee proposal. [1:02:12] Mayor Luke Hellier: Any other discussion? Joshua. [1:02:14] Councilmember Joshua Lee: Um, it's... I think Councilmember uh well, actually all the council members make points that I I think we've all wrestled with. Um, I echo much of what Councilmember Wolter has said uh thus far, but I I do in some ways disagree that this is... there is a term here. We're talking about 20 years; I think that is uh very similar to the term of the bonding, that's how we came up with these rates. So to me that is as as transparent uh and clear as we can get um from a a tax perspective. [1:03:00] Joshua Lee: Um, one thing that I'll add about um kind of what I was wrestling with in in terms of what is more appropriate—property tax or franchise fee—um is is how much this may impact our seniors or low-income residents. Um, so I I I asked staff to run numbers and models on um not only what our median in home values are, but those that are in that first quartile um and and still over that 20-year period, this this becomes uh u- lesser or or is a lower cost than that than if it were on property taxes. And for me that was an important figure to look at. [1:03:45] Joshua Lee: Um, the other piece too, when we are anytime we're talking about seniors, we're talking about ensuring that what we are are taxing them is uh consistent, stable, predictable. And that's something that I I value for this franchise fee for a critical service that we're we're providing. Um, so I think in terms of the the questions and comments that I've received on this um it it really geared towards "How is this fair? Equitable?" And and those are kind of my responses to that—why franchise fee over property tax. Um, I think those are the things that I I'm looking at. [1:04:15] Joshua Lee: The other thing too is the the wider um base of folks that are are responsible for this. Ultimately Public Safety is not just something that our business owners and residents are are a part of, but it's our visitors and folks that are coming through our community. Um, and and so I to me it feels more fair and equitable to increase the size the the responsibility of that shared um need with those who are visiting the community as well. So those are the folks that are visiting our our faith institutions um or other non- uh nonprofits that are in the community. So um that's where I I landed on on this as I was wrestling on in terms of where what direction to go. So but I appreciate all the points that the Council's made on this. I think it's been a robust discussion and I've valued the input both from the community and from you all as we've talked through this. [1:05:17] Mayor Luke Hellier: Well um I'll just close and say one: I I don't want to repeat a lot that was said, but I do appreciate number one the feedback that we've gotten from the community through emails and phone calls and then obviously the public hearing uh two weeks ago. That conversation is invaluable and and really helps, you know, understand and certainly help, you know, guide us as as a community. Secondly, I think as was stated, you know, if for me—from my perspective—if the franchise fee was just something that we're trying to add in build revenue just to pad the coffers, I would have not been supportive of it. [1:05:55] Mayor Luke Hellier: I continue to believe that Public Safety is this City's top priority um whether that's clearing the streets like today, but also um from a Police and Fire perspective. And so uh having those investments in particular—and I think both the First Center, which we've gone out and gotten federal uh and state funding for to help uh lower that burden which helps with the franchise fee, and and the same um too with the grants we've gotten for on the Fire staffing side have obviously alleviated some things on the levy side. [1:06:30] Mayor Luke Hellier: Thirdly, I do believe this is the most equitable way to um distribute this and over the long term um expands the pod or the pie, if you will, of of who's paying into this. And so I think it's the best way to move forward. Uh, and with that I will uh take a motion to approve uh the ordinances for franchise fees. Yeah, Dan? [1:06:51] Dan Wolter: And we need to do two motions, correct? [1:06:53] Allyn Kuennen: Correct. [1:06:54] Dan Wolter: Um, so I move to approve ordinances to implement electrical service franchise fees on Excel Energy and Dakota Electric Association and adopt ordinances to implement gas service franchise fees on CenterPoint Energy Minnesota gas and Minnesota energy resources. [1:07:05] Mayor Luke Hellier: Is there a second? [1:07:15] Councilmember John Bermel: Second. [1:07:16] Mayor Luke Hellier: Any further discussion on the motion? Okay, seeing none uh roll call please. [1:07:22] Ann Orlofsky: Wolter? Dan Wolter: Aye. Ann Orlofsky: Lee? Joshua Lee: Aye. Ann Orlofsky: Volk? Michelle Volk: No. Ann Orlofsky: Hellier? Mayor Luke Hellier: Aye. Ann Orlofsky: Bermel? John Bermel: No. [1:07:38] Mayor Luke Hellier: Okay, very good. Uh, and with that I'll take a motion to approve the summary ordinances. [1:07:44] Joshua Lee: Joshua, move to approve summary ordinances of the four ordinances imposing franchise fees. [1:07:53] Mayor Luke Hellier: Okay, is there a second? [1:07:54] Dan Wolter: Second. [1:08:00] Mayor Luke Hellier: Any further discussion? [1:08:02] Justin Miller: Mayor, Council, just a reminder: this um is a requirement that we publish these ordinances in the newspaper, and so a four-fifths vote allows you to uh publish a summary. As you know, the impact of these are rather long. So if this motion does not pass, we'd have to publish the entire—all the ordinances—into the paper. So this particular vote takes a four-fifths vote. [1:08:26] Mayor Luke Hellier: Okay, very good, appreciate that clarification. Um... [1:08:30] Michelle Volk: I'm not clarified—say that again. [1:08:32] Justin Miller: So we're required to publish these into the newspaper, our legal newspaper. Um, if you—we're allowed to do it in a summary form and a shorter form with a four-fifths vote of the Council. Um, if this particular motion of just the publication does not pass, we would need to publish all four of the ordinances in their entirety into the paper, which would be a added expense. [1:09:00] Mayor Luke Hellier: Just for clarification, we it's typically the procedure that we do summary ordinances? [1:09:05] Justin Miller: We do on long ordinances, we do, yes. [1:09:08] Mayor Luke Hellier: Okay. So and I want to clarify, too: so that... I mean this is totally unrelated to the motion we just passed. This is a separate one just about how we want to publish. [1:09:12] Justin Miller: Correct, right exactly. [1:09:13] Joshua Lee: Right, the full ordinances are still on our website if anybody wants to read the entire ordinance. We're just required to publish it and we have the option to do it in a summary form if four-fifths of the council agrees. [1:09:20] Michelle Volk: So basically what you're saying is when—if I vote to yes on the second um approval, it's just because basically the first one already passed. Doesn't matter that I voted no. Now it's a matter of the legality of how it's published in the in the newspapers, basically what you're saying to me? [1:09:30] Justin Miller: That's correct. [1:09:31] Michelle Volk: Okay, thank you. [1:09:32] Mayor Luke Hellier: Roll call please. [1:09:34] Ann Orlofsky: Lee? Joshua Lee: Aye. Ann Orlofsky: Volk? Michelle Volk: Aye. Ann Orlofsky: Hellier? Mayor Luke Hellier: Aye. Ann Orlofsky: Bermel? John Bermel: Aye. Ann Orlofsky: Wolter? Dan Wolter: Aye. [1:10:01] Mayor Luke Hellier: Very good. Again I want to thank uh you guys, my colleagues, for this discussion we've had over the last uh 10 months, I appreciate it and it's uh it's been enlightening so thank you for that. Uh, moving on to items eight and nine: unfinished and new business. Okay, seeing none um announcements: first one's kind of a fun one. We got a note from the Open Door that the City collected 386 pounds of food at the De-Light-Ful, which is the first-time event we've done so. Hopefully we'll continue to be able to support that. We had drop centers at City sites and downtown and then businesses. And then the other is our next meeting is next Monday. It's a work session, that's a change—typically our work sessions are the 4th uh Monday but because it's December 23rd we're moving up to December 9th, so it'll be here uh in the Lake Marion conference room at 6:00. With that I will take a motion to adjourn to closed session to conduct the performance evaluation of the City Administrator pursuant to Minnesota statute 13D.05, subdivision 3A. [1:10:50] Dan Wolter: So moved. [1:10:51] John Bermel: Second. [1:10:52] Mayor Luke Hellier: Okay, all those in favor say Aye. Councilmembers: Aye. [1:10:53] Mayor Luke Hellier: Opposed? We are adjourned into closed session. We'll give everybody here ample time to leave before we start. Don't worry. Do you want to go to the conference room? [1:10:50] [Music]