[Music] [Music] good evening and welcome to the June 17th city council meeting if you join me in a moment of silence in the Pledge of Allegiance ALG to the flag of the United States of America and to the repic for it stands one nation God indivisible liy and justice for all okay Mr lovsky roll call please Michelle W here luk kellier here John burmel here Dan Walter here Joshua Lee here okay very good moving on to item number three citizens comments this is an opportunity for those here that would like to address the council about an issue that's not on the agenda typically if there's an issue on the agenda we'll have a public comment okay moving on to um item number four additional agenda information Mr Miller mayor there is a revised item uh related to the Pud on the Kenyan green plat um it's at your desk and um uh it'll be addressed at that time when that item comes up item e okay okay moving on to item five on the agenda presentations introductions and this is um related to the 50th anniversary for darts and if Miss Bailey would like to come up and talk about darts that would be great good evening mayor council good to see you all thank you very much for having us here today darts has been in the community specifically Dakota County for 50 years we started up in Inver Grove Heights and have moved onward and upward as you many of you probably know we run a loop here every Thursday which circulates through senior dense housing and then sh stops where those Riders want to stop which is largely groceries and runs for places like Walmart and Target so we are absolutely grateful for the partnership that we have with the city for the programs that we're able to provide for the volunteer opportunities that we're able to provide for our older adults to remain engaged and connected in the community and we are very grateful for the many many years that we've had serving the Lakeville community so thank you for this opportunity this evening thanks for being here and I will read a proclamation so whereas the city of Lakeville is committed to providing residents access to a high quality of living as they age in their communities whereas nearly one and three motans are above the age of 55 whereas since 1974 darts has served older adults their families and caregivers with the mission of creating connections that enrich aging and whereas 2024 marks darts its 50th year of providing services for thousands of older adults across the southeast Metro including Lakeville these Services include housework outdoor chores home repairs caregiving resources resource connections fulfilling volunteer oportunities and transportation whereas dart's partnership has provided vital services like the Lakeville Loop and home chores benefiting our community whereas dart's ongoing commitment to collaboration Excellence inclusion responsibility and service and its communities has helped ensure a 99% client satisfaction rate whereas the volunteer dedication has created intergenerational connections which in turn result in learning buddies reaching more than 80,000 students and fulfilling aging Journeys for our older community members whereas the city of Lakeville celebrates the 50th anniversary of darts and recognizes the incredible role it plays in helping people age with dignity in their community of their choice now therefore I luk helier mayor of the city of Lakeville do Proclaim June 17th as dart's Appreciation Day and I signed this copy for you guys to have thank you very much hopefully at least 50 more years right all right moving on to item six on the agenda is the consent agenda anything to highlight Mr Miller thank you mayor city council two items of note tonight both are donations item 6E is a resolution accepting Don from the Lakeville Public Safety Foundation to the Lakeville Police Department for Community engagement efforts and that's an $8,100 donation and then item 6G is our quarterly acceptance of donations to the Parks and Recreation Department and this uh actually this is the first first two quarters totaling just over $6,000 and we're appreciative of both those um donations very good uh Council any items that you'd like to discuss further if not I'll take a motion to approve the consent agenda I move to approve the consent agenda is there a second second okay and any further discussion okay all those in favor say I I post okay it passes uh moving on to item number seven action items Kenyon green uh preliminary plat and I don't think we'll turn over to staff or to Mr Waldo from Ron Clark Construction first and then good evening welcome mayor members of the council Mike Waldo with Ron Clark Construction we'll see if I can keep from screwing this up here oh there we go um I'm going to probably read a little more than I normally would I try to go but then I last about 20 minutes and I'm trying to keep this down to the short version um so what we're come before you tonight is our Kenyon GRE project we're looking at a 49 unit affordable apartment um and 15 town homes on the site um as you can see on the board here um as you can see with this site it's very difficult with the three roads surrounding it and the Wetland on the West Side uh this is much more typical an infill site that you very seldom see in in because you're doing so many green fill sites but these are going to become more and more common I think in Lakeville as there's little Remnant Parcels left over that have had rways taken away other developments taken away and I think that's what we're we're here trying to find the highest and best use for this site um over time of course the site's been continued to be constrain every time the city is taken more right away and then also the uh the Wetland on the uh south east or southwest corner the project aligns with the current o zoning make sure I do um which is a residential transition zoning uh which be normally allowed with an approved cup um in discussions with staff as we looked at the uniqueness of the site and kind of how everything kind of needed to fit together to get to a really what we think is very good site plan they felt the Pud was the best way to proceed um it gives the city a little more control over what's going on and allows us to have a few very few variants I think we're at down to four or five now we start off slightly more than that as we got clarification um the project will be nearly the same as Lakeville point I don't know how many you familiar with the apartment we built uh in 2017 kind of kitty corner behind Culver I call it um that was a uh tax credit apartment we built then I think as if you talk to um staff and police and everyone else I think that's been a what we'll call an excellent project I think our management staff which is uh Steven Scott management does an exceptional job um Christy leads that team we do caretakers who are live there so we've got a caretaker that's on site 247 which kind of gives you that little extra eyes on the street as you're looking at it over in the evenings and other times when there normally would be problems um Ron and myself as owners of the project we stay involved we have an affordability component where we're committed for 30 years on that project and a on Kenyon green will be committed for 50 years to meet the affordability so it's not something we can walk away from down the road uh we've got between the Dakota County CDA and Minnesota housing uh they oversee that and do inspections on it every one to three years uh depending on how the project goes so you get someone else besides the city with eyes on it consistently um the residents uh that will serve there um meet the 60% Ami thresholds an example being a family of four can have incomes up to 7452 um which in today's market makes it very difficult to find quality housing when you look at the rents at at any other market rate facility and and what you're doing to buy housing they can't even come close to that um we will be submitting for tax credit funding from Dakota County uh this fall um one of the things is without additional funding from cities which a lot of cities including Lakeville very don't like to have to put money into affordable um they'd like to kind of see it be more generic I think the the minor variance as we see here is kind of helping us not have to ask for money because with the 15 Town Homes we're able to offset the land value because a nice parcel like this with o is we think worth what we paid for it if not maybe a little more but I can't put that much into a 49 unit apartment I need to get that number down to under 20,000 a unit somewhere around 17 to 18 which then leaves me a gap and I think that's where we're looking at the Town Homes as kind of filling that Gap um with what we'll call fairly minor variances we believe that'll be for you to decide but um so that's one of the reasons why the town home piece is so important and right now we're looking at probably doing those as rental but we actually do all of them as full pids so that may be a for sale or rental on those Town Homes we haven't made that decision but each one will app it individually so even if we decide to rent initially they can be uh sold down the road um again we talked about the constraints require the design required by the design it necessitates the Pud to achieve the city's um to Creative Design adapts and meets the city's housing goals as you know affordable housing is a is part of your goals in the city Charter and so it's important we do that the Kenyon green if you look here the Kenyon Avenue um of course which comes down along the freeway and turns and gets away far enough so it can meet to that first stop play um that curve uh from a visibility perspective we needed the access to be in the center of it uh one of the original designs had us doing a separate access for the apartment from the um town homes and from a staff perspective and uh and everyone else that didn't they didn't feel our Traffic Engineers did the same thing we really want that to be Center gives you the maximum distance both ways um the setbacks we're requesting are driven kind of be the additional restrictions of the road in most cases that road would be a 30ft set back in this case because it's considered um minor collector I believe it's called that that's where the 50ft setback comes from um we've talked about the fact we will have a fence along that road um along with additional buffer plantings which we can show here um and then one of the conversations that came up with staff and I think it might have been pushed forward by one of the council members that we had some additional Boulders in along along the fence line to kind of give some additional buffer if someone would happen to exit can Canyon Avenue I think the reality is that they probably end up in the parking lot but there doesn't mean someone couldn't get a little bit farther so we will look at doing some probably six to eight Boulders along there you know kind of in a size that can at least slow down or deflect a car um if before it kind of gets that direction um we've worked at the Watershed in the city regarding the Wetland uh there was an old drainage area that kind of ran up into the project uh so we've been allowed to fill that uh which is where a couple of the town homes go that approvals been through the Wetland and will'll be paying for wetland credits for that uh we spent testing with engineering we've done Peters on the site because even though the Wetland in the corner is down at 9 93 I believe it is and our garage floor is up at a th um the Wetland to the south of 185th is actually like at a,2 and so we are seeing some perched water on the site where the apartment is so we're going to have to and working with the staff right now we have reading of 1 100.5 as our highest water table so we're going to bring that up 3 ft which is the city uh requirement ordinance so that's why we're asking for that 3ft height of ordinance variance because of that uh additional water and bringing up out of the thing um in many cities we'd be very comfortable building at that same elevation because it's only once in a great while that a purches up to there and with the waterproofing system and drain Tow and the fact that the Wetland is so much lower we would normally work that work but it's um it's something that's within your ordinance and no one I doesn't make sense to change that and I know staff's not willing to do that so that's one of the reasons we're asking for it without having to regrade some of the back of the building where we' like to keep the trees we're just allowing for a slightly higher building and I think as staff has said if we're at 42 versus 45 the the average person is going to know the difference and it's going to fit the site better um talked about that um the town own setback reduction for the driveway uh one of the things we'll see um is you've got 30 ft right now from the back of curb on the private road to the face of the gve we're asking for 25 um I know when we talked about in Planning Commission um one of the planning commiss members had actually went out and looked at multiple other sites in town where that's already been allowed and you know a lot of your town home sites that you'll see in some of the other suburbs are 22 to 20 feet that's where you get really tight you can't put a pickup on there at 25 ft pretty much anything you're going to drive comfortably fits in there for two cars so we felt comfortable reducing that did not want to go any lower than that um I think other than that I know one of the variant has went away because again as you look in the corner we're uh like 400 ft from the drive aisles of 35 where the exit ramp is and then there's a pond between us in the exit ramp so the originally we went to Planning Commission thinking we need a variance for that once we got the letter from mot uh it we did not need that so the building fits with that Corridor um I think other than that there's all the things regarding management or any of this stuff I'm happy to expand on it or come back later for questions whatever works best for you yeah I've got a couple questions and okay um so I got a call from some folks in the business condos if you will in the western can you talk a little bit about how much of the trees will be preserved on that western side if there isn't have you thought about any screening on the back side of those town homes that are uh right there that's I'm saying um the area to the I'm not I don't have the that look in the staff report I know there's a tree removal plan in the staff report the area behind the house there you can see behind the town homes up in that corner that actually is part of the Wetland buffer because their Wetland is on the other side about 10 ft away from our property line so even though the Wetland is not in our site we have additional 10 foot of wetland buffer there so um we're not aware of anything being removed in that okay um but um I didn't there is some on our actual sites or within a few feet of the back of our sites it will go maybe if uh I can I can there there is a tree um removal plan somewhere tucked away in the uh yeah I was looking at it but I couldn't I was looking in the thing here but I couldn't um tell if if it was going to actually remove any trees there or not okay curious about that and then the other concern I had uh initially is the playground that curve is is dangerous and can you move the playground not right on Canyon so there's uh you have it there I mean it doesn't make sense CL if I remember correctly you climb up about five or six feet to get to that okay so so there's some elevation so there's some elevation change the difference there um and then we'll look at that and if we need if we'll look at that with staff and if we need to we could either add a couple ballards along that side or add something of additional um Boulders there too I I think it it fits really well for it because it kind of keeps it tucked away and gets them into some of the Green Space um but we'll definitely look at that and make sure that we're not you know leaving It Wide Open from that road okay well I would just caution against Boulders in a playground that's like kid we would do more at the edge of where you know where the fence is because that'll be a fenc off playground okay well I yeah my grand kid same boulder is what you jump off of like you know bringing home a refrigerator and they play with the Box you know you put the boulders and they're going to play with that instead of the that's kind of why I meant Ballers is what my recommendation be in that case because it will be kind of be in that tucked Corner we can do that as part of the fence um but I there is enough elevation change that I think we'll be um much less susceptible he might be at the entry okay other questions from Council comments or staff report okay don't go away we might have more questions I hit your I touched your keyboard sorry all right all right we're back all right um thank you mayor members of the council I don't want to reiterate a lot of what um Mr wdo shared um but as you know the application is for a plary plot it's also for a rezoning to PUD and the plan unit development stage approval um the property just for some context for the audience since we didn't share the location map um the property is located immediately north of 185th Street West of the interstate and south of Kenyan Avenue it is zoned o office residential it is allowed use in this zoning District according to the requirements of the rh1 zoning district and as Mr Waldo explained there are a lot of what we perceived is site constraints to the development um necessitating the request for the Pud um to make the site um the most easy to develop and the Pud is also the tool at which to utilize for the joint types of housing both the apartment as well as the town homes I just want to highlight um just this page um or this slide it just identifies where those different deviations are he's already spoken to them but the first one is along Kenyon Avenue the rear buffer yard is required as the rear of the homes are facing Kenyon so this is a major collector so it has a wider buffer within this area as you saw in the landscape plan there is still 55 to 60 ft before you ever touch the road in between that is right away there is the trail that we will be built bu up to the driveway entrance to the site as well as the Landscaping The Boulders and the fence so there's still plenty of buffer within that area the requirement is only because of that extra um designation of the roadway and because in this design the rear the homes are facing that it's a rear setback the site as you can see the entrance um there is one single entrance there is a private Drive designed that private Drive will serve all of the town home so the front door as well as the garage g face that interior driveway and so that's where you have that private Drive set back um in this case it's a little bit less than the 30 ft but we believe a car or a truck will be able to appropriately fit within that space and there is no sidewalk that were in risk of um crossing over if a car were parked on the driveway because it is a private drive there is another small um deviation this one is real Miner just AB budding the buffer there's a tiny bit of parking lot encroachment as well as retaining wall in these two locations and then finally this point of the guest parking touches the lot line that lot line was put there to accommodate both sites both development sites if you will the apartment to the town home so it has that single access and the site lines were developed so that single access could be shared so the same driveway that sh um providing access for the apartments and coming into their parking area and to their underground parking is the same driveway feeding into that private drive and so that very minor setback it doesn't impact the site it doesn't impact the public um nor any structures and the only other structural setback is the one AB budding 185th and just like Kenyon Avenue this has a distance of over 60 feet to the actual roadway with right away the trail along 185th buffer as you can see on the landscape PL so I'll just put that back um so we believe that in the end these deviations are fairly minor in context of the benefits of the overall site and the type of housing that is being produced so I just want to touch on um Mr Waldo noted it um here are the elevations I should point out that there are no other all of the other setbacks are being met all of the parking they're providing underground parking as well as surface parking and all of the guest parking for the town homes are being met um the building design is high quality um under our zoning ordinance when you do have a project that is proposing affordable housing they can request some leeway towards the design standards in this case they are not so all of the elevations meet or exceed the minimum standards for the design our comprehensive plan and several other policy guidance documents really do guide the work that we do in our department and our interaction with developers on sites like this so the Envision Lakeville 202 three um has some content related to um creation of Workforce and affordable housing as does our own comprehensive plan one of the things that's not noted under the comprehensive plan up here is what our actual goal is so we're at 1,44 affordable units by 2030 and they're supposed to break down into those different percentage categories and so this development will help fulfill some of those percentage categories and then finally last year we did our comprehensive housing needs assessment this project was really driven from the economic development commission it's been a priority of theirs to make sure that we have affordable housing to serve our local Workforce while we can't guarantee that um the folks that are going to be renting these um units are going to be working in Lakeville it would be nice if we could guarantee that but we can't guarantee that but what we can offer is this type of housing within the community to fit the needs that we have um particularly our Industrial Park our Manufacturing facilities and we hear it all the time that there is a need for affordable housing and so the study last year um demonstrated demand for 400 rental units and 160 subsidized rental units and so this fits within um that portfolio if you will of need that's been identified in that study um I won't go into any more detail I did find the landscape or the plan and it does as Mike said um show that as many trees as possible within those buffer areas of budding that area and there's still quite a distance between this property and where those office um Suites are located um so they do have quite a bit of buffer because of that Wetland um but those trees will be remaining the Planning Commission did hold a public hearing um last week on June 6 they recommended approval with a 4 to2 vote um and again the developer did revise um the Landscaping plan was something that we really wanted a little bit more work on um the additional Boulders um I Heard a notation on the playground and then the last thing that we edited um that's in front of you is the actual PUD um after um submitt of the packet became apparent that um we needed to add a condition that if these units were to be sold we wanted in this agreement to be very clear that an HOA would have to be established regarding the town homes and I would stand for any questions do you know or maybe Mr Waldo some of the other rental Town Homes um handle their trash where they do daily Pick pick up some have each unit has their own trash pickup weekly do you have any idea how that would be handled yet I just don't know if I saw like a community uh they would all be if they're rental they would all be either way the association or the rental manager would take care of all the garbage and we normally do it one once or twice a week depending upon the demand load okay most cases they'd have of whatever how many gallon trash thing and it would be taken out once a month once a week excuse me got it but it will all be coordinated so it be one person doing all of it whether it was an HOA or whether it was a for a rental okay John uh quick question can you go back to the map that has like the sketch of the thing the keep going keep going keep going very first one one no the one well that'll work yeah that that too um so the only thing I was looking at here it's got the oneway in so you come in and either go to the apartments you go to the tow houses and I'm just looking at the End of the Road by the last townhouse there um I how wide is that road because I'm just thinking if there's a fire truck or a trash truck or an ambulance there we have done all the Turning Rus as are required for fire and safety and that's why that Hammerhead where we did pop out uh into the buffer uh that's a background area for the fire truck so that that was part of the meeting those turn radius guidelines um to make sure we met all those okay thank you questions at this time so this is not a public hearing but it's kind of tradition that if there's folks that have the weigh in we offer kind of a couple minutes so if you yep go ahead you state your name and address for the record please keep your comments to three minutes okay I'll try hi Janet labens um my address is 18560 nollwood circle uh I'm a Lakeville resident I live on 10 and a half acres uh um a parcel that's zoned rural agricultural that runs along the entire uh 185th Street just to the south of this proposed development uh the first thing I'd like to do is just acknowledge that I think I'm going to be able to keep my comments relatively brief because Frank Dempsey did a really good job over the last 10 days of responding to all a lot of questions that I had including around the wetlands the landscape plan the building colors as well as Computing the distance for me between the apartment building and my house which I'm really interested in um I would like to say that I have no major concerns with the town home portion of this plan I think the space is uh the planned use of the space is consistent with the adjacent properties in the immediate area and doesn't create any kind of a visual distraction I am however concerned about the apartment building portion of this proposal which I think is quite a deviation from the all the surrounding space including on my side of 185th Street um further I'm not yet fully understanding how I will be personally impacted uh by this development either visually by a 45 foot tall structure that's oriented lengthwise uh along 185th Street that will be 600 ft from my house um and or whether I'll experience any decrease in my property value as a result of the building Frank has suggested Ed I follow up with the dakot count County assessor's office to discuss the property value issue and I am uh currently waiting to hear back from them on that I'm also in contact with a property attorney but my understanding from them is that I would need to wait until after the fact to do any followup there um finally I would like to express just my sadness over the removal of trees I think I counted something like 70 of them many of them mature as part of this proposal um I anticipate that I may need to be out of town when the majority of the tree removal occurs on my side of the street uh my my late husband and I have tried to do everything possible over the past uh 28 years uh to uh save trees including last year I spent $29,000 on Oak Wilt uh uh mitigation um so that's it for me thanks for giving me the opportunity to speak tonight thank you any other comments U Miss goodroad could you talk a little bit about the height and how that compares to the Lakeville Woods which is across the street thank you mayor um members of the council I'm going to come up short I'm not sure the height of the um existing um they're all single story maybe um with the pond they might be walkouts um sorry uh that's the apartment across the street oh the apartment across the street I think that's very similar that's um this property allows for Office Buildings so whether it be an apartment of this number of stories in this height it could be an office building in this case and it's an apartment building so I think from a youth standpoint um it's kind of irregardless um Frank did talk to her extensively um we spoke about um her concerns um the way her property is situated particularly her home um she does have a lot of woods um to her benefit um we do not believe that there will be any visible um be able to have any view of it from her property once she comes out into the roadway to 185th certainly you will see it there but the underlying zoning allows these uses and this height I guess I only I have one comment and this could be off base so maybe I'm in misinterpreting a little bit if you're you're concerned about safety um having an apartment building with the residents that are in there I can honestly say that the property that is over bye Culvers is really well-run there there really just isn't I'm in that area every single day and I've never no matter if it's well I'm not there a lot at 2 in the morning but I mean I have but there really isn't um there really isn't any concerns with the residents that are living in that um facility and the you know um the kids walking to Wallgreens or you know or dollar store you know there's some great little places for them to uh to shop at to get key real Jeep so um but uh there's just really never been any issues with that building and and the residents that are living in there probably the biggest issue is if it snows too much they can't get in and out of that property so we've had the same experience um we have had no um phone calls to our office um regarding any concerns so um it's a very well Ron Clark does a great job with their facilities and their management D um Miss skro can I just ask a question about the you know it's it's zoned Ro right now and the determination was was made to make this a PUD um the way I look at this I I I see most of the aspects of this seem like they could work within the existing zoning but it's just a matter of the number of town homes was was anything done to I mean I'm I'm I'm trying to figure out you know if we would require this to go under existing zoning how many tow houses do you have to get rid of on this plan or what what what are the what are the tradeoffs there because my big concern is the Pud usage here yep um thank you I understand that concern um I think Mr Waldo tried to express that you know every developer is dealing with cost of the land and you try to work with an underlying land owner as much as you can on what that cost of land is and you need to be able to make the project affordable from a development standpoint um in this situation um like he said the town homes is allowing that to happen in conjunction with the apartment building so could the town homes um in that one row be eliminated um it would probably be a minimum of four or five there's been um I don't know how many numerous site plans U Mr Waldo worked through um but it would be a result in units to reconfigure that to not have um some of those encroachments um he can testify as to how many in previous plans um we've worked with him um have made the same request in earlier iterations and when we were reviewing it and it became very apparent that for this project to be successful um these Town Homes um in terms of the revenue um that they'll receive from those is necessary for this project to work and so it was with that that we suggested considering a PUD understanding that this is a great example of when a PUD comes into play as a PUD can not only work just for the mix of uses but it works really well on sites that are tricky sites and we're going to have more of these um infill is going to be our future pretty soon and when you look at the shape of this lot when you look at the physical natural characteristics of the site and the fact that we've got two major roadways of budding it um and needing to be able to make the site um buildable from a financial standpoint it became very apparent that we needed to consider that and through that we worked very hard um over the past several months to minimize um those deviation requests as much as possible and then whenever you do consider the deviation request look at how we're mitigating it and I think the developers done a tremendous job in um Landscaping plan and design considerations amenities added to the site to really help mitigate um all of those um deviations three of which are very minor Joshua um thank you mayor I walked the site today um as much as I could get to it's a very wooded property U and very wet uh so I should have brought my waiters um but I in in my mind I was thinking about some of the concerns brought up at the Planning Commission about the the number of deviations um but I wanted to take each one of the deviations for its own Merit and and reasonability um as well as the the residents concerned about visibility of this this the uh apartment building and so checking off each one of these concerns I I really feel that the the deviations are are minor changes and when you walk the site um foot by foot um the the changes that they're asking for I think are are well in line with what one would reasonably expect this property be to be away from a roadway from a sidewalk um from 185th when you include the RightWay on the other side of the the trail that that is plenty of space between the the roadway and the apartment building with the cover the tree cover that exists already plus I from looking across the street I can't see the the residents home uh from that point so I don't think there's going to be a visual concern there um the the deviation on the height is a grading deviation and it's not a structural um addition so it's not like we're uh they're building a taller building it's just that it's a little bit higher U and so I think because of that water table and like I said it's very wet it makes sense that you would want that a little bit higher um it was a raging River going into that storm drain um on the west side of the property today um to me the only the the part that is maybe the the big bigger ask potentially is the town homes um and the the yard rear yard setbacks on Kenyon um which by the way the sight lines and the new driveway is great that I stood at the Apex of that road and that was a great recommendation to have that driveway there um but I guess where I feel this is a reasonable deviation is because of the use and the speed of this of this road it's a 40 mph Road um traffic is very light um and in terms of uh where people will be coming in and out of this site um it seems as though safety is not necessarily a concern uh based on what I could see um so I guess all that to say and summary I as I'm checking down the list of deviations I see them as as minor uh and necessary for for this property to be developed for a product that our community needs uh based on on many surveys and uh and so I I appreciate everything that went into this project because I I think it's very well done and and would like to support this project going forward any other comments question yeah John I just two comments and I'll Echo some of what's already been said I mean this fits the vision for our city it also fits our one of our goals um I2 there's a number of deviations but when you start to look at uh the significance of them um they are relatively minor um this is a unique piece of property I'm a little curious on the history of the property like you know have people tried before and it just doesn't work out but it just seems like to make this kind of development work um that those deviations uh are going to be necessary and so I I support the deviation I don't think any of them are significantly major uh for me for multi housing I'm always asking the question about management um as I read because of my experience um in public safety and uh crime-free multi housing living and I'm you know the management company here is a reputable company uh they have a crime-free drug-free lease addendum uh the thing to remember about these is trouble is attracted when things are managed poorly when things are managed well trouble isn't attracted because trouble doesn't like accountability and uh I saw uh you know some waiting list data too which is always healthy a low vacancy rate big waiting list a solid company for me the management is right where it will need to be um to uh for me to think that that this will work so for those reasons I I'm in support of it okay um with that I'll there's any further discussion otherwise I'll take a motion on the I can yeah oh so yes I wanted to note that I think there's one condition that maybe need to be added to the um conditions uh for PR plat approval is that a shared driveway easement be established over lot one block two serving lot one block one and that would be in the pr AR plat conditions resolution is that in this amended no okay that that is separate so that would be for the uh resolution approving the prary pl so this would be F but we're doing it all in one motion read yes yeah we got one and two motions you can get it from the staff report and right now we have two motions a resolution approving the Kinder green preliminary plant and two an ordinance resoning the property so in the resolution approving the preliminary plat you would add that additional condition as number nine thank you um okay Mr Mayor yeah can I additional comment before motion yeah sure um so I my concern on this is the use of the Pud here um I I think it looks like a really good project and I I the developer I know does really good work uh in our community and I appreciate appreciate that the concern that I've got about you as somewhat expressed in my question is to me the merits of this look like they could work within the existing zoning um my concern is the precedent that we're setting um when it comes down to the developer economics in the number of units as being the reason to uh use the Pud I I I mean we we've just approved a number of townhouse developments and other things that I mean what's to stop a future developer from saying I need to put an additional 10 town homes in here um so that's why I'd like to do you know make it get a PUD so I I I will be voting against it just because of that I'll take a motion with the cavia they were adding in the ninth stipulation is that acceptable or do we need to say it out loud um I would say a resolution approving the Kenan green preliminary plat subject to the additional condition related to the shared driveway easement okay would somebody like to make a motion to um approve that also includes subject to agreement to a driveway easement mayor I moved to approve a resolution approving the Kenyon green preliminary plat subject to the additional uh stipulation related to the driveway easement or shared driveway easement and an ordinance resoning the property from o residential office residential transition District to PUD planned unit development is there a second second okay any further discussion roll call please Burl I Walter no Lee I bulk I helier hi okay thank you uh moving on to unfinished business there is none new business a resolution authoring issuance awarding sale prescribing the form and details and providing the payment of go bonds and I will turn it over to miss stall I think and Miss green no yes yeah okay all right thank you Mr Mayor um so we did have the bond sale this morning this is for our go General obligation bonds 2024a the amount of being 21, 530,000 it is paying for the 2024 Street reconstruction project and collector Rehabilitation as well as the last portion of the November 2021 Bond referendum so that that Bond referendum portion of this sale was roughly 15 million um just note that Moody did Moody did um assign our AAA rating again and so that's wonderful news and we had a good Bond sale this morning we have Jessica Green Jessica Green from Northland Securities here to share the uh bid results with you so I'll ask Jessica to come [Music] up mayor council good evening good evening evening evening as Miss stall just mentioned we did hold a bond sale this morning at 10: a.m. and the results are pretty great um 10 bids came in Piper um out of Minneapolis is the low bidder here um we do have a sale summary for your consideration and then of course we do have a resolution for consideration by the council for the issuance of 21 million 530,000 in general obligation bonds um this will be considered series 2024a and as Miss stall mentioned we have two portions um related to the bonds here so Street reconstruction activities along with your collector rehab program and then of course the final issuance related to the park referendum so um we have a couple of different structures here with the street reconstruction portion looking at 10 years for structure which is consistent with what the city has done previously for Street reconstruction bonds and then for the park referendum portion that's structured over 20 years again consistent with how um the city has issued bonds for that or for those projects um in terms of security we do have of course the general obligation Pledge of the city um so we will see adoram taxes supporting the payment of the bonds we do have special assessments with the street reconstruction those are not pledged to the bonds but they will be used to offset your debt Service uh Julie mentioned um the bonds were um affirmed at a AAA rating so the city continues to score very well against the Moody's methodology competitive sale today 10 bids again Piper out of Minneapolis was the low bidder for the bonds we have a final maturity here of February 1 of 2045 and then an optional call February 1 of 2032 so at that point you are able to call the bonds in in whole or in part and then then finally at the bottom we have just a quick comparison there um between when we had gone over the finance plan back in May um as compared to the results today so again 21, 530,000 and nice results here with a decrease from 3.90 to 3.65 on the following page you will see the bid tab with all 10 of those bids and as you'll see they stack up really closely together a difference of about five basis points um between all 10 of them which is um kind of crazy and then finally you've got some schedules here um related to the bonds both on a combined basis and separated out of course you receive all of that final information with the bond transcript and then at the end of your sales summary you've got some information about local issuance National issuance that occurred today and later this week and then some Market information um for both short-term and long term so you can see some of the information related to Market history with that I am happy to take any questions that the council may have okay Council questions comments yep Joshua do you happen to know what the the difference what was between the 3.90 and what we actually locked in at I knew you were going to ask me that it's not an easy conversion and the reason being is that in this case the city chose to keep the premium and typically what we're seeing where we haven't had the park referendum pieces is we've reduced the size of the Bonds in this case here we're keeping the premium because obviously the costs of the park projects have are more expensive than what was originally estimated so it's not there's not an easy crosswalk um between the two but I can say that if we would have simply downsized the bonds which wouldn't have been a recommendation just because again you need that additional cash to complete the projects you probably would have been looking at about $100,000 um in savings again if we would have reduced the size of the bonds it thank you with that I will take a motion to approve the resolution I move to approve a resolution authorizing issuance awarding sale prescribing the form in details and providing for the payment of $2,530 th000 in general obligation bonds series 2024a is there a second second okay and any further discussion okay um seea roll call please Walter I Lee hi bu hi helier hi FAL I very good thank you appreciate it and we'll stick with Miss stall on our acknowledge receipt of our uh financial report annual financial report thank you again Mr Mayor uh tonight we have Chris kopic part sorry it his title principal with Clifton Larsson Allen and Lucas Chase also with the audit team who um did the audit for the city and are here to present the results of the audit and the financial report welcome sounds good thank you Mr Mayor and Council and thank you uh Miss doll for introducing us my name is Chris kopic I'm a principal with CLA I've been uh working with the city now for several years probably five six years somewhere in there this year I also have Lucas Chase who's the director on the cities engag and he's also been working with the city for several years so similar to what we've done in the past we do have a slide deck that we're going to go through the audit results some Financial results and then just kind of some things on the horizon for the city to consider um this year we did have to downsize some of our presentation because some of our comparative data that we've historically had in the past is just not available to us yet so the state agencies that pull the information together just don't have the data out there for us for public consumption yet so slight decrease in what we've had in the past but I think overall will still be a good uh representation so as we go through this there's the council received a couple of different things not only a copy of the act for um the annual comprehensive financial report as well as a governance communication letter that's a letter that we are required to provide those charge with governance in regards to the audit it has a lot of just required Communications that we have to do in there and then also I just want to note that the city did receive an unmodified clean audit opinion on your financial statements that's the highest level of assurance that any type of entity can receive whether it's government for-profit nonprofit publicly traded unmodified as the goal we set out for as part of your audit we do look at the internal controls for the city our responsibility is not to provide an opinion on your internal controls our responsibility is to let you know if we identify any deficiencies in your internal control processes as you can see on here those those potential deficiencies are either classified as a material weakness or a significant efficiency and as you see there's none noted on both of those so very positive there to note that even with some of the turnover that happened within Finance over the past year the internal control structure for the city Still Remains very strong as part of the audit we also do look at Minnesota legal compliance this is a 25 to 30 page document that the state auditor office uh publishes every single year for us us Auditors that work with local governments divided into seven different categories that we have to look at similar to other things none noted which means we didn't identify any legal compliance violations as well so I'm going to turn it over to Lucas now to go through some of the financial results thank you so this first slide here you'll be seeing your general fund revenues a stacked barograph with all your different types of revenues stacked on top of each other five years of data you'll see kind one outlier the negative investment income that's grouped in that other Revenue category in the prior year uh which is then a a large reason for that same category than having a large increase and then being above that negative of course um so you'll see your proportion of property tax and other increased um if you're looking at as a percent um and that's a lot of times because your intergovermental Revenue went down because we had $4.9 million of arpa or the fiscal recovery funds recorded to your general fund last year in 21 in 22 excuse me your property taxes make up 69% of your revenues in your general fund um that's up a bit from last year but there again we had those federal dollars kind of bring that down so last year was 66% this year 69% but you're lower than if you look all the way back to 21 about 72% of your general fund revenues were from property taxes your total revenues remain very consistent um when you're looking at it uh you're down about $2,000 from the prior year um you're about $38.5 million total revenues both years now this one's looking at your revenues uh budget actual so you have your budget on top and kind of that that yellowish green uh and then your actuals in blue there uh you're relatively close to budget if you're looking at percentage wise you know just a little over 1% difference but uh in the right direction right you're over budget so you had more revenues than budgeted other revenues mostly investment income were higher than budgeted uh that's you know your budget conservatively there and that's that's you know that's a good thing uh also intergoal Revenue was over budget about uh 236,000 um we have a a special funding entry you make each year due to State special funding to Pera it's you know not budgeted for um and there also was $110,000 forestry Grant running into there that kind of make up almost all that variance uh Li and permits were also over just kind of the makeup of what made those up this year I think between single family m family and such uh you did have a couple categories a little under what you budgeted charges for services um some reduced Engineering Services you know with in connection with whatever you had for going on with developer construction um and then taxes some slight variances and collection rates but if you if you look at that uh you know $254,000 difference in taxes it's less than 1% variance now looking at general fund expenditures uh stack bar similar to a couple slides ago on expense on revenues uh you can see we increased about 7.7% from the prior year but this uh increase was less than your budgeted increase you ended up uh $621,000 under budget you'll see on the next slide and uh just looking at your increase in 2019 you've increased expenditures 26% but your revenues in that same time span from 2019 increased 24.5% so pretty positively correlated and and in line with the growth of the city and here again your general fund budget to actual you can see your is percentage wise very close to budget 1.7% under budget so they're in kind of the right direction uh Public Works had the largest proportion of this uh followed by General government uh and then parks and wreck had about a 1% difference in the public safety following that uh across all your functions or departments most of it just Personnel costs coming in a little under there were some vacancies uh make up a lot of that budget difference and then other charges uh were about kind of your next biggest area mostly in legal fees uh came in a little under budget and then we're looking at your your fund balance here in your general fund uh and you can see your your unassigned fund balance uh your cash expenditures and then that green line is your unassigned fund balance as a percent of your expenditures this is a little bit different than your fund balance policy because you're you basically look at your everything except for nonspendable and restricted and your fund balance policy as a percent of next year's uh budget budgeted expenditures uh but to be kind of comparable using actual ending amounts this is the green lines comparing your unassigned as a per percent of expenditures so just a note there you're not exactly apples but a good comparable so your policy with that in mind is 40 to 50% um using actual sign compared to actual expenditures for 23 it's 51.5% or about 188 days uh looking back at your your budget um and projecting out um using ending amounts here you'd be at about 42% projected so you'd be right in your fund balance policy projecting uh for 24 now we're looking into your Utility Fund um so you're you covered your depreciation so that's great and then of course then you have positive cash flows when you look at the green line on here we're trying to more closely reflect um your operating income after backing out kind of that non-cash depreciation amortization uh and be kind of closer in line if you looked at your statement of cash flows and your income your cash from operations so with that in mind um we covered depreciation both years uh we had a little bit higher operating income in 22 operating revenues increased from the prior year or usage and rates changes there cash flows from operations you had $6.2 million in 23 down just slightly from about 7.1 uh million in 22 your cash Investments uh are total at 27.1 million in operating expenses at 22.6 million you'll see your operating expense increased um mostly due to about a$ 1.36 million increase in your other charges with some additional maintenance some additional water main braks and your utility funds here's a slide on your liquor store um so you'll see on the top that's the office of State aits uh gross Pro profit percentage for the 7 County Metro Area uh they actually I think since I prepared this they did we do have the 22 because right now we just have through 21 uh that came out at uh let's see here 27.4% so Statewide from from 2122 they actually let a little bit decrease from 2122 the cities had an increase and then you had another increase from 22 to 23 um so you increase from 26.9% gross profit percentage to 27.4% uh so pretty positive there you're a little bit lower than some of your other metro area cities if you're looking at Apple Valley Diana Eden Prairie but if you look at kind of your closer neighbors you're you're you're higher or pretty comparable like Farmington um 21 was at 25. 4% 22 when I looked today 26% so slightly higher than your neighbor this slide switching slides here is your taxable Market values so we had a increase and 23 so 23 is at 11.6 billion or about a $2.1 billion increase from the prior year 24 is about 12 A5 billion they're again about a $1 million increase um and then 23 was the previous Peak and of course each year is the previous Peak so far here's a slide on your tax capacity rates typically this is an inverse relationship uh tax rate includes your operating end debt levies you can see uh your tax rate there of course in Orange uh you had a nice little uh decrease in in your tax rate so your your prior tax rate was uh so you're 32.8 5% and you came down to 29. 68% or about a 3.2% decrease your tax capacity had a increase from 22 23 from uh to about 23.7 million or about 22% here's a tax comparison uh with some assumptions included uh using that the estimated medium taxable value of the city about 49,000 429,000 I should say um and doing some calculations City Lakeville ends up about right in the middle there uh for your your neighboring cities now if we did end up keeping it's pretty old data from the office ERS now and then giving you three years since that data is available um but we do have 21s uh the offic data there for comparison in the three years since um so just kind of keeping that in mind but you can kind of see the trend of revenues per uh capita here so looking that you can see revenues per capita increased $125,000 $125 per capita um increases were in taxes special assessments other revenues get remember that other revenues is mostly the investment income you had kind of odd year previous year and uh some improved market conditions in 23 uh 2023 per capita revenues if you look back to our last compar from the state are about $32 more than 2021 um for what that's that's worth for comparatives there your largest differences would be in special assessments charges for services and other revenues here's a look at uh Revenue per capita pulling in some some neighboring comparable cities uh again 2021 and 22 are using 2021 data uh as 22 and 23 is not quite yet available uh typically when we look at this the city's been below average and most of these revenues per capita except for licenses permits uh when we're looking at 23's actuals compared to the 21 comparables from the office of State Auditors also interg govern revenues were above average uh and then special assessments were additionally above average in 23 similar slide here uh looking at you know last comparable 21 but now for expenditure per capita uh your per capita expend increased $244 per capita from 22 Capal a lot of times you're large driver with all the development going on in your road work uh per capita is about $488 more uh than other cities back in 21 so with that in mind and a lot of times for the city your drivers are your cap LLY in your debt service now here's a similar slide then pulling that into your line graph uh with your neighboring cities that we're using for comparables uh you can see that you're below average uh cost per capita to fund these different functions uh with the exception of capital outlay principal and interest so similar uh results is looking at the prior table and I'll pass back to Chris sounds good thank you very much Lucas any questions from any of the Council on on any of those slides at all before I just kind of wrap up with two quick slides here at the end uh really just uh Joshua I was going to wait to the end but but on your first couple slides you were talking about no no findings um in areas of deficiencies but I could you talk a little bit more about your audit process because one thing is reviewing statements and you know all those documents but are there other pieces of this puzzle that you do to help ensure that there are no findings interviews and all things like that yes and and really to answer that the the planning process for this starts back in December November right in there roughly so we start with um meetings internally with our CLA team as well as City staff to just get an understanding of what's happened in the last year you know obviously we can see the development side of it we see the bond issuances we see that type of stuff that happens but then from there what we do is we set out a game plan as far as how do we want to approach this year's audit CLA uses a risk-based audit approach which really means that through these discussions internally and with City staff we talk to typically one or two members of the ENT of the council as well to get your perceptions your understanding of fraud risks where do you think there's risks within within the city's operations Finance operations I should say and what that does is we come at it and say okay how can we approach the audit audit and kind of get as we say the most bang for the buck in our audit process it's not feasible and economical for us to audit every single transaction of an entity that's where we say an audit provides reasonable Assurance as to your financial statements not absolute Assurance so what that what that entails outside of the interviews with uh staff interviews with uh members of management a member or two of the council then we look at and go okay we start to pull in external data analytics as far as tax levy what are other areas doing for liquor operations for utilities and we also do do comparisons year-over-year we also do test controls uh we typically rotate um every other year unless there's a risk that comes out that we think we should between either dispersement testing or payroll testing or a combination of both so we are pulling I probably a few hundred invoices throughout the process looking at everything so um and that's including everything from legal compliance internal controls the testing um Capital assets additions uh we always have an element of unpredictability every year which we have to incorporate by auditing standards so it's a lot of different moving pieces to get to the end where you get the nice bound financial statements at the end of the day sure thank you I I'm always pleased to see no findings but also you know over many years with no findings that it just kind of made me perk my interest on you know where are the risks um when there are are no findings I and I'm our uh our finance finance committee also has uh input there too or have you met with that group as well yes okay great thank you and and that's where it comes down to is knowing that the city has internal control structure when there's turnover within finance and you can still maintain that no internal control deficiencies no legal compliance when we're pulling as many invoices as we can the the legal compliance item that normally gets a lot of local governments is is one where you have to pay all of your bills within 35 days or less when you start talking about that 35 days isn't very quick if that invoice sits on a Department's desk for an extra week it may miss a pay cycle and all of a sudden it's beyond 35 days so some of those real if you want to say easy items that we see in other municipalities we didn't have any of those here either which is always great to see so really just to wrap it up as Lucas had mentioned the city is meeting your fund balance policy when you look at projecting it against your 2024 operating budget no internal control comments no legal compliance findings your Enterprise funds are providing cash flows from your operations which is your day-to-day transactions and you're also um fully covering your depreciation which is great that means current users are paying for the current system and infrastructure in place which is great to see the liquor fund transferred about $3.7 million out of the liquor operations to help offset other activities capital projects Debt Service general fund operations that's very great that's we'd like to see that coming from the auditor's point of view and then really the last piece on this slide is the city each year uh submits your annual comprehensive re um financial report to the um government Finance Officers Association and for 2022 the city received the award for that so that's 35 consecutive years that the city's received that the city fully anticipates that it's submitted this year and it will be um receiving that award for next year once again to get through the review process then finally just a couple of upcoming standards the the governmental accounting standard or gasby board that we say um remains very active we just came out of two years where we had a leasing standard a um subscription-based it standard that we adopted for local governments now we look at we kind of get a a slight reprieve because there's of the standards that are coming out the next big one that's really on our Radars is that um statement 103 in 2026 as audit time frame statement 100 really is only going to be um U if you have a uh prior period adjustment or some type of restatement there's some additional note disclosures that go along with that so nothing of concern there statement 101 is a a little bit of additional work on the city's side but not anything compared to what we just went through with with the leasing standard and those ones um statement 101 is really relooking at what government should be recording for what we call compensated absences there that ACR sick and vacation leave the current standard that local governments are using is statement number 16 you can see we're all the way up to 103 that's probably 40 to 50 years between those two standards and some of the things that local governments and employers are doing now for those ACR leaves and different types of leave Banks didn't exist 40 years ago think of paid time off now everybody gets this earned safe and sick time within Minnesota all of those different things so what that's going to do is force local governments to look at that and say do we need to record any additional liability related to these balances um a a minor change to a gasby interpretation related to group asset purchases it basically they changed one word from could to should so auditing world could and should mean mean two different things should means you must could means it's your choice so a small change with that for group ass purchases group asset purchases for the governmental accounting side is say you purchase 100 laptops at a th000 bucks a piece um prior to this change you could look at each one of those laptops and say they're below our capitalization threshold so we don't have to record any of those as capital assets with that change from could to should now it says you have to capitalize it if it's over your capitalization threshold so instead of recording a thousand at or 100 laptops at a thousand a piece you could record just one large computer purchase of $100,000 so little little um change in that um statement 102 related to risk disclosures that's really going to be looking at how governments and what they should disclose regarding concentrations whether that's vendor concentrations Revenue concentrations so really just some additional disclosures related to that statement 103 is that next big one that's on the horizon n for local governments and that's the uh changes to the financial reporting model so they're calling it improvements us on our side kind of being uh satirical we want to put quotations around improvements because they're not always an improvement um so there will be some changes coming to the city's um annual comprehensive report coming in a couple of years around what's what's uh being reported where it's being reported what's going to be required to be in that management discussion and Analysis and various things like that so there's going to be a lot more information to come on that in the future so outside of that we're open to any other questions any of the council members may have okay thank you Chris and Lucas any other questions comments thank you both appreciate it thank you very much we appreciate it and with that we'll move on to uh just we're supposed to acknowledge sorry thank you we have to officially acknowledge the receipt of the report that would be great and then I just want to add a little thing at the end after you do that okay so that I will take a motion to acknowledge the report Dan I move to acknowledge receipt of city of Lakeville annual comprehensive financial report for the year ended December 31 2023 second um any further discussion roll call please Fulk hi helier fmal I Walter I Lee I so as Chris mentioned um the national gfoa um gives this award out uh to entities that fit the parameters they they go through a vigorous testing of our report but these it's what it this is putting the onus that is put on the cities that um are applying for this where we have to publish an easily readable and efficiently organized annual annual comprehensive report not easy to do the report must satisfy both our generally accounted generally acceptable I can't talk tonight generally accepted accounting principles as well as those legal requirements um so this award program it's very high measurement standards that they have in place and it is the highest form of recognition in the area of governmental accounting and financial reporting so the attainment of this award it's nothing to be taken lightly and it represents a a significant accomplishment by the government and its management so um I'd like to extend a special thanks to and appreciation to Julie wner David Lang Laura Miller and Tom nessi for all of their time and effort in preparing the 2022 annual comprehensive report 35th year we got the award and also um in addition to the finance team I'd like to also commend the mayor and the city council for their support because um you're maintaining our high standards of professionalism in the management of the city's finances so thank you thank you sorry it almost seems routine when you get it 35 times in a row not to be taken lightly thank you for for reminding us how what everything goes into that so congratulations and thank you to your staff as well thank you very good um okay now moving on to announcements next work session is uh next Monday night here at City Hall uh and our next city council meeting is July 1st back here at City call City Hall and with that I'll take a motion to adjourn there second iour my [Music]