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HomeMy WebLinkAboutWK - March 27, 2012ANLb ��or 6VE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV City Council Workshop Tuesday, March 27, 2012 Conference Rooms A & B 1. Call to Order — 6:00 p.m. 2. Joint Meeting with Planning Commission a. Interim Use Permits 3. 2011 -2012 Council Goals Update and Discussion - Administration 4. 2012 -2013 Capital Improvement Plan Progress Update — Administration © 5. 2013 -2017 Capital Improvement Plan Discussion — Administration 6. 2012 General Fund Budget Progress Report -Administration 7. February 2012 City Investment Report - Administration 8. Discuss 2013 Budget Development Guidelines - Administration 9. Other Topics 10. Adjournment H C • LNDOVE^ ANDOVER CITY COUNCIL WORKSHOP MEETING —MARCH 27, 2012 MINUTES The Workshop Meeting of the Andover City Council was called to order by Acting Mayor Julie Trade, March 27, 2012, 6:10 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Sheri Bukkila, Mike Knight, and Tony Howard Councilmember absent: Mayor Gamache Planning Commissioners Present: Chairman Dean Daninger, Commissioners Kyle Nemeth, Michael Olsen, Lynae Gudmundson, Steve Peterson, and Valerie Holthus Also present: City Administrator, Jim Dickinson Community Development Director, Dave Carlberg Others JOINT MEETING WITH THE PLANNING COMMISSION Acting Mayor Trade invited all members of the Planning Commission to introduce themselves. Following introductions, Acting Mayor Trade explained this joint workshop meeting was to update the Planning Commission on projects that are going on in the City including current and potential projects. She would like the Planning Commission to have an understanding of the plans of the Council and EDA. Community Development Director Carlberg highlighted the projects going on in the community including the redevelopment district located between Crosstown Drive and Crosstown Boulevard along Bunker Lake Boulevard, near Fire Station 1. The City has been monitoring this area and as properties have become available for a reasonable price the City has purchased them so that the area can be redeveloped in the future. This is a long -range project. Acting Mayor Trade asked what water main projects had been completed with the CDBG Funds the City had received. Community Development Director Carlberg stated there had been water main projects on 138th Avenue and 140'b Lane. Acting Mayor Trade provided the Planning Commission with a copy of an article in the Anoka County Union regarding the applications made by Wal -Mart. Community Development Director Carlberg stated the City had received the application from Wal -Mart for the property currently occupied by Pov's. Wal -Mart is interested in 19.9 acres and © Andover City Council Workshop Minutes —March 27, 2012 Page 2 Mr. Povlitzki would retain 6 acres. Wal -Mart has submitted a preliminary and final plat, a Conditional Use Permit (CUP) for outdoor storage and a CUP for off -sale liquor sales. The City has 10 days to review the application to ensure all the documents are complete. If everything is complete then the Planning Commission would hold public hearings on the preliminary and final plats, and the two CUP requests. The City will post a sign on the property with information about the public hearings. He explained in the past the City has accepted the preliminary and final plats together but with this particular application the City will inform Wal -Mart that the preliminary plat will move forward and the final plat will not be accepted at this time. Acting Mayor Trade pointed out this will be a controversial project and the Planning Commissioners are cautioned not to share personal opinions. They need to be sure that all decisions are based on the information provided and the laws and ordinances governing the City. Community Development Director Carlberg stated any calls received could be directed to him. At this time the only information that is available is that an application has been made. Once the application has been reviewed for completeness it will move forward in the process. He explained it is unlikely the property has been sold at this time. The land transaction is likely to occur if the application has been approved. The City does not have access to the purchase Qagreement. He explained this is a sale between a private seller and an entity and does not include the City. Planning Commissioner Olsen stated the City would have 120 days to approve or disapprove the preliminary and final plats. He asked if these deadlines would run concurrent. Community Development Director Carlberg explained the City would accept the preliminary plat first and there would be 120 days to approve or disapprove that. Once this is done then the City will work with the final plat. Staff will work closely with the City Attorney to ensure the City is protected and following all State Statutes and laws. Once the 10 day review is done and the application is complete it will be public information. Acting Mayor Trade stated the neighborhood and residents would attend the public hearings. The property is currently zoned general business and this does not conflict with the operation of a retail location. She stated as the process moves forward, staff will try to make the information available as soon as possible so Planning Commissioners have time to review it prior to any meetings. Community Development Director Carlberg stated this is private property and the current owner is signed on to the application. Planning Chairman Daninger stated he would not recommend any e -mail responses to residents. E -mails can be forwarded to Community Director Carlberg for response if needed. Councilmember Trade stated personal phone numbers and addresses are not on the City's website but persistent residents may still try to contact Planning Commissioners at home. She © Andover City Council Workshop Minutes —March 27, 2012 Page 3 stated the publicity Pov's had brought to the City in the last year has not been favorable. Community Development Director Carlberg continued outlining projects in the City including Parkside at Andover Station. The City has purchased a piece of property and has been talking to potential developers and replatting this property. This could potentially be brought to the Planning Commission for approval this year. He stated the City had a big event celebrating the expansion of Dynamic Sealing Technologies. He explained the City's website has an aerial of the property available at Andover Station including all the information for each property. This makes it easier for potential buyers to get information they need to make preliminary determinations on the property. The McCombs Retail Market Analysis would be available for staff to review soon. There had been some struggles with getting surveys completed. In some situations it had been a determination of Corporate Offices not to participate. The City had this done to provide direction in what the City should be planning for in the future. He stated another PUD amendment that would be coming to the Planning Commission was in the Grey Oaks area. There are 2 parcels that had been platted to be a convenience store and day care but due to the development that has occurred just south of this location they would like to combine these parcels and build a 70 unit senior complex with assisted care and memory care. This will be a change from a commercial zone to a high- density residential zone and it would need to be © sent to the Met Council as a change to the City's Comprehensive Plan. S Acting Mayor Trude stated this project would also include a TIF hearing. Community Development Director Carlberg stated this is correct. It would be a TIF district within a larger development district. The City would be considering a 15 year TIF Note. Planning Commissioner Peterson asked if this would be a pay as you go project. Planning Commissioner Holthus asked if the City is limited to the amount of TIF that could be done. Community Development Director Carlberg stated this would be a pay as you go project and there are limits on the amount of TIF a City could provide but Andover is below this limit. He stated this project is expected to come to the Planning Commission in May or June. There had been a neighborhood meeting for this project and it was well received by residents. Councilmember Howard stated this project could spur other development in this area to move forward. Planning Chairman Daninger asked if there were any traffic signals planned for this intersection. Community Development Director Carlberg stated there is not a traffic signal planned. This type of development does not produce significant traffic or parking needs. The City has requested they limit the amount of parking they will need at the site. © Andover City Council Workshop Minutes — March 27, 2012 Page 4 Acting Mayor Trude stated there would be a water and sewer project on South Coon Creek Drive this year. This may result in residents requesting to be hooked up to the City's sewer and water. Community Development Director Carlberg stated the City would see small residential projects come forward. The City's current lot inventory is 80 lots with less than 40 of these being considered rural. He explained the projects the City of Anoka would be considering for the parcels located near the library including retail and multi - family housing. Councilmember Knight stated Anoka is also moving Castle Field to the south side of the arena. Bunker Lake Boulevard will also be upgraded to four (4) lanes all the way to 47 in Ramsey. Councilmember Trude stated the City has negotiated future access for properties in this area. INTERIM USE PERMITS Community Development Director Carlberg stated the EDA and City Council have discussed the operation of a U -Haul rental business at the Stop -N -Shop convenience store located at 13725 Crosstown Drive NW. Through these discussions the idea of allowing this type of use as an © interim use was explored. The purpose and intent of an Interim Use Permit (IUP) is to allow a use within any zoning district for a limited period of time that reasonably utilizes the property where it is not reasonable to utilize it in a manner provided in the Comprehensive Plan and/or to allow a use that is presently acceptable but that, with anticipated development or changes, will not be acceptable in the future. He clarified Conditional Use Permits (CUP) would be attached to the property and an IUP could be tied to a specific business or use and include an expiration date. The City currently does not have Interim Use Permit provisions. The process would be similar to the CUP process with a review, public input and possible conditions added. A sunset clause with a CUP can cause legal problems for the City but an expiration date can be included with an IUP without causing problems. Councilmember Knight asked if a business would have a claim if they had been approved for an NP, invested a large amount of money into the property, and then the IUP expired and was not extended. Community Development Director Carlberg clarified with an IUP it is understood up front that the use will not be permitted permanently. The IUP could be granted for situations where a short-term use of a property is needed. This would be similar to the tire chip storage on Hanson Boulevard that had been presented to the City a couple of months ago. An NP would be used if a space could be used by a business that would otherwise not be able to operate in that area, until another option is available. © Acting Mayor Trude asked if there would be a problem with businesses thinking an IUP meant anything would be approved. Community Development Director Carlberg stated the process for an IUP would be similar to the © Andover City Council Workshop Minutes — March 27, 2012 Page 5 CUP process. A business would need to meet criteria for approval and the IUP is for short-term use only. A CUP is a conditional amendment that runs with the property and is considered long- term as long as the conditions are met. Planning Commissioner Holthus asked how the City had approved the tire chip storage on Hanson Boulevard with an expiration date. She also asked if this was the only situation in the City where a CUP had been issued with a sunset clause. Acting Mayor Trude explained with the tires on Hanson Boulevard, the City Attorney had included an expiration date and clarified this was due to the hazardous nature of the products being stored. The longer the hazardous materials were stored there the more likely they could become more hazardous. Community Development Director Carlberg stated there were other CUPs in the City that included sunset clauses and these include temporary classrooms. He stated the problem with a CUP is that it stays with a property and it can only be revoked if the conditions of approval are not met. © Planning Commissioner Peterson stated there have been no cities sued for an IUP but there have been for CUPs. The IUP is another tool available to the City to provide flexibility for businesses. He asked if the time period would be at the discretion of the Planning Commission or City Council. Community Development Director Carlberg stated a typical IUP time frame would be one (1) to five (5) years but the applicant can request an extension at the end of the term. He explained an NP could be restricted to a specific business and location and conditions can be added but they would not be transferable or go with the property. All NPs would be looked at on a case -by -case basis. Planning Commissioner Olsen stated there was language in the draft IUP Ordinance that tied back to the City's CUP Ordinance. He suggested this be reviewed to ensure the language is coordinated correctly. Community Development Director Carlberg stated the CUP language only contained a provision that if the CUP had not been used within 12- months of being issued then it would become void. Staff would review the language for both permit processes and ensure the language is clear and Councilmember Bukkila asked if the IUP process would be opening the City to liability because © this process was more liberal than the City's CUP process and did not have to meet the strict criteria of the CUP. Community Development Director Carlberg stated the City would need to exercise care. The IUP is to allow the short-term use of a property that may not otherwise be allowed. The City may Andover City Council Workshop Minutes — March 27, 2012 Page 6 be more open to reviewing a use for a property as a short-term use without allowing the use to be tied permanently to the property. The situation with the tire chip storage would be a good example. Under the CUP this use is tied to the property but with an IUP the City could set a deadline without any problems. The owner of the property where the tires are being stored will be coming to the City for approval of additional storage because he would like to use similar material on his property. The IUP is another tool for the City to use and does not circumvent the CUP but it will allow flexibility to allow things that make sense on a property for a short-term use. Planning Chairman Daninger asked if the City could terminate the IUP before the expiration date. Community Development Director Carlberg stated an IUP would terminate upon a specific date or event. This means if there had been a specific reason, such as the construction of a new facility, that was completed the IUP would be terminated. An event would be considered something the applicant said they would do under the NP. Planning Chairman Daninger stated in the draft lUP language, Item A.1 should be reworded to © make the language more clear. Acting Mayor Trude clarified the IUP process was not a way for applicants to bypass the City's zoning. She asked how staff would like to proceed with the draft IUP. Community Development Director Carlberg stated if the Council and Planning Commission would like to see the language worked on, staff could bring a revised draft forward for consideration then the Planning Commission could hold a public hearing regarding it. Councilmember Bukkila stated she would like to see the language clearer and simpler. Community Development Director Carlberg stated the procedure would be spelled out clearly and there will be no connections to the CUP process, this way there would not be any confusion on the two (2) permits. Acting Mayor Trude asked if it was the consensus to have staff provide cleaner, simpler language for the Interim Use Permit and have this discussed at the next Council workshop. She suggested staff look at the language other cities use. Planning Commissioner Holthus asked when the next City Council workshop would be. © Acting Mayor Trude stated the Council workshop is scheduled for the end of April but the Planning Commission will be having one on April 10. She stated she would accept the draft language going to the Planning Commission workshop prior to the Council workshop. Community Development Director Carlberg stated the U -Haul operation would continue to Andover City Council Workshop Minutes —March 27, 2012 Page 7 operate until the City has reached a resolution regarding this matter. He pointed out there were other uses that would be expiring soon within the City and having this process in place would benefit the City. Planning Commissioner Nemeth asked if the renewal process for the IUP would be the same as the application process. Community Development Director Carlberg stated an IUP with an expiration of one (1) year would be unusual. Most are likely to be in the two (2) to three (3) year range and there would generally be none over five (5) years. An applicant can request an extension of an IUP and this would need to be approved by the City. He clarified there was no expectation that an IUP would be extended because there was an expected termination date set at the beginning. Acting Mayor Trude stated the League of Minnesota Cities recommends the use of Interim Use Permits. Community Development Director Carlberg stated the draft could be discussed at the May 8t1i Planning Commission workshop. © Planning Chairman Daninger stated the Planning Commission has not had a meeting since the new Planning Commissioners joined. At the next meeting the Planning Commission will need to swear in the new members and also vote on a Chairman and Vice - Chairman. Councilmember Knight stated he appreciates the work of the Planning Commission on these issues. Planning Chairman Daninger stated one of the goals of the Planning Commission had been to provide more discussions on the items brought forward for the Council to consider and this has been accomplished. He expects this to continue with the upcoming projects in the City. He stated the Planning Commission had not had workshops in the past but he has found these are helpful in providing additional information prior to the Planning Commission making a final decision. He would like to see these scheduled on the same evenings as the Planning Commission meetings. Planning Commissioner Olsen stated there were several projects coming up in the City and the Planning Commission should have no problems putting together an agenda for their meetings. Community Development Director Carlberg stated it is also important for the Planning Commission to understand where the City Council stands so that the Planning Commission is not ® spending time on a development or project the Council does not support. Acting Mayor Trude stated the Planning Commission is both planning and zoning and the Council needs their help and support in order to serve the community. She stated if there is information the Planning Commissioners would like to see included in their meeting packets they Andover City Council Workshop Minutes — March 27, 2012 Page 8 need to let staff know. The Workshop with the Planning Commission adjourned at 7:45 p.m. The Council recessed at 7:45 p.m. The Council reconvened at 8:07 p.m. 2011 -2012 COUNCIL GOALS UPDATE AND DISCUSSION City Administrator Dickinson provided a summary progress report on the 2011 -2012 goals and values. Council is asked to review and discuss the progress being made on the 2011 -2012 Council Goals and Values and discuss the process for developing 2012 -2013 Council Goals and Values. He pointed out the updates regarding the goals. He asked the Council to review the goals and determine if they were still true statements for the Council. Councilmember Knight stated he would not disagree with the Fiscal Value goals and this should be ongoing. City Administrator Dickinson stated as part of the Commercial /Residential Development/Redevelopment Goals he would like to add working with developers to find alternatives to Letter of Credit requirements. He stated developers are having problems accessing the amount of credit the City requires. Acting Mayor Trade stated this would fit in with the Commercial/Residential Development/Redevelopment Goals. She asked what options may be available to developers. City Administrator Dickinson stated the City could look at putting the variable fees such as aerial mapping of sites and staff costs for inspections into a smaller escrow or include these costs in the development agreement. At the time a building permit is applied for the City would collect all the fixed costs such as park dedication fees, water connection charges and sewer charges. The City would not issue a building permit until these fees were paid. Acting Mayor Trude clarified the fixed costs would not be collected as a total amount but would be paid in smaller portions as the single lots are developed. She asked how this would be set up and what the down side would be of doing this. City Administrator Dickinson stated this is an agreement that could be included in the development contract. This is a process that is used in communities outside of the Metro area. The City would still receive the fees but just over a period of time. Acting Mayor Trade stated she would agree with this approach. The only down side would be the park dedication fees would not be received as one payment and this could delay projects in the neighborhood or somewhere else in the City. Andover City Council Workshop Minutes —March 27, 2012 Page 9 Councilmember Bukkila stated she would also agree with this approach. She stated the City would not be putting in a park for a neighborhood that only had three (3) to four (4) homes in it so it would not be a problem with the park dedication fees not coming in one full amount. Councilmember Howard asked what would happen with the costs not paid if the developer goes out of business. City Administrator Dickinson stated if a developer does go out of business the City could have the ability to assess the outstanding amounts to the properties. He stated he had explained to the developers the City is currently working out a program but it would be a pilot program and the City may not continue with this program in the future. The developers were appreciative of the City's willingness to work with them and this may be an advantage for the City and attract additional developers. Acting Mayor Trude stated she would be supportive of anything staff could do to work with developers and attract additional development. She suggested staff look at goals 6 and 7 in the Commercial /Residential Development/Redevelopment Goals and word them differently. © City Administrator Dickinson stated staff will do a survey with the Council prior to the next workshop and have something put together for the Council to consider for adoption in May. Acting Mayor Trude asked if there would be any proposed changes in the Livability /Image Goals. City Administrator Dickinson stated the City will not likely meet goals 3 and 4 related to the Livable Communities Program and Transit Expansion. He asked if these should be stricken as part of the update. Councilmember Knight stated leaving these in as goals was not an issue. Acting Mayor Trude stated she would like to have something added that includes meeting with Anoka County and going through the County's roads in the City and discussing what the City's needs are, including potential stop lights and intersections. There are several areas in the City that pose traffic problems for residents and the County should look at these issues during their redevelopment projects. City Administrator Dickinson stated the County's long -term goal is to turn Crosstown Boulevard back over to the City but the City should push to have the development of this section in the County's planning process. If the project does get on the County's plan then staff will need to work to keep it included in the plan. Councilmember Bukkila stated she would like to have the City discuss the little bridge over the wetlands by Fire Station 1. She stated there is no safe zone for residents to walk between Bunker Lake Boulevard and Fire Station 1 and this should be looked at. © Andover City Council Workshop Minutes —March 27, 2012 Page 10 Acting Mayor Trade stated she would like to see the County use the funds for the light scheduled on Hanson Boulevard and 161 s` Avenue on other problem areas in the City. City Administrator Dickinson stated that intersection received Hazard Mitigation Funds and those funds will need to be used in that area. Acting Mayor Trade stated she would like to be sure that any potential open space projects include the costs for roads or access and the maintenance for these roads. This way the Council can make an informed decision on the properties and what the financial impacts would be to the City. The Open Space Funds can not be used for providing access so the Council needs to know what this will cost prior to approving any purchases. City Administrator Dickinson stated in the 2013 budget process, staff would include maintenance and access costs for open space. Bond Counsel had told the City to be as specific as possible when making the Bond request so referendum funds can only be used for the purchase of "land ". The City would not pursue any open space purchases that did not have value for the City, lands that are preserved naturally do not need to be purchased. QActing Mayor Trade stated she would like to be sure there is a plan included with all open space property proposals that include access and maintenance. Councilmember Howard stated he would like to have the needs of the Community Center added to the CIP discussions. They are outgrowing their space and they would be willing to look at different options for obtaining more space for programming activities and flex space. This may include discussions about a Teen Center. Councilmember Bukkila stated a Teen Center needs to have enough room so that the kids could have space. Councilmember Knight explained the Maple Grove Teen Center is set up including different rooms for different ages. He pointed out the facility had less activity than the current Andover facility but they also have a smaller walk through population. The YMCA and Community Centr is in need of storage space. Acting Mayor Trade stated a storage building had been on the plan but this had been removed for financial reasons. Councilmember Howard stated batting cages could also be considered and the Hockey Association would like to see a dry floor work out area as well. These things would not be expensive to build but they do point out some of the shortcomings of the Community Center after 10 years. He stated the City also has afield shortage that is currently being looked at for those outdoor sports that need fields. Councilmember Bukkila she did not disagree there were some needs at the Community Center © Andover City Council Workshop Minutes — March 27, 2012 Page 11 but the City needs to consider the amenities that are added and making sure all the City's sports are being treated equally. Providing a special work out area for one sport would not be something she could support. Acting Mayor Trade stated the YMCA would pay for what they use and there may be interest from the sports associations to pay for a portion of having amenities added but this is something that would need to be looked into. City Administrator Dickinson stated staff could talk to the Community Center and look into their needs and bring back an analysis for the Council to look at. He stated it is less expensive to add to an existing building than it is to build a new building and the current Community Center was designed with future expansion in mind. Staff could look at costs. The YMCA would likely prefer the City do any expansions because the process would be less cumbersome then theirs. Councilmember Howard would suggest staff move forward with looking at this because the YMCA is one of the City's largest partners. The Community Center is his biggest goal. He stated he would provide staff with an updated concept plan to start with. 0 Councilmember Bukkila stated the Artificial Turf Task Force has not been able to make any final decisions. The group has not been focused because there had not been enough financial information available. The concept of a dome may gain interest but there is a need to fund the project. The sports associations want the City to pay for it but the City does not want to raise taxes in order to fund the project. The short-term goal is to add fields but as a long -term goal they would like to see a dome. Councilmember Knight stated the City should look at the field situation. There are not enough fields in the City to accommodate the demand. City Administrator Dickinson stated staff could look at areas that are under utilized and potentially add irrigation to add to the number of fields available. Staff will add a field demand analysis to the goals. He stated one of the associations has talked to someone in Coon Rapids and they may have fields available. Staff will look into this as well. He pointed out that adding fields cannot be about bringing home a championship but rather about the needs of the kids and the community. Councilmember Knight stated the complaints residents have is they have to leave the City in order to play and they do not want to do this. Councilmember Bukkila stated the Task Force does not have any real answers. The members are focused only on the needs and wants of the sport and they do not consider what is going on with families and how a dome could impact taxes and residents. Acting Mayor Trade stated the sports associations would need to provide some funds for a dome facility or artificial turf. The City is willing to provide funding for projects that are available to Andover City Council Workshop Minutes — March 27, 2012 Page 12 all the residents. Councilmember Bukkila stated the associations would have to raise their dues then and they are not willing to do this but they want the City to raise taxes. City Administrator Dickinson stated there should be a balance between tax, service and the money the associations are willing to provide. A field demand analysis and working with the Artificial Turf Task Force and Community Center are good ways to start. Councilmember Bukkila stated this is not a priority goal. Acting Mayor Trude stated she would like to see something in the area of public transit as a goal. She would also include creating partnerships to provide lifecycle housing. She asked if the Council would have another opportunity to review the goals and provide additional input. City Administrator Dickinson stated staff is currently working on two (2) lifecycle housing projects. The goals discussed will be added and sent to the Council for review including: information for working with developers for alternatives in paying for fees, rewording goals 6 © and 7 in the Commercial /Residential Development/Redevelopment Goals, discussing County roads within Andover with Anoka County, additional trail needs in the City, the inclusion of access and maintenance information for open space proposals, review of the Community Center and its needs, study of the field needs in the City, and potential public transit. 2012 -2013 CAPITAL IMPROVEMENT PLANPROGRESS UPDATE City Administrator Dickinson provided an update of the 2012 Capital Improvement Plan (CIP) projects and equipment purchases. He also provided a list of 2013 planned equipment purchases that had been discussed during the bond sale process. During that discussion it was determined to include some of the equipment planned for 2013 in the 2012 bond sale to take advantage of low interest rates and to eliminate the need to do an additional bond in 2013, saving underwriting fees. The Council is asked to consider authorizing staff to start the procurement process for acquiring the 2013 equipment attached. Acting Mayor Trude stated the purchase of a ladder truck is the big item on the list. She asked if the City needed to proceed with this purchase at this time. Councilmember Bukkila suggested staff wait until the end of the year to purchase any equipment unless there is a significant savings that could be obtained by purchasing something early. Councilmember Howard stated the 2001 vehicle replacement should be pushed out. The City could also push out the purchase of a trailer. The ditch mower does need to be replaced. Andover City Council Workshop Minutes —March 27, 2012 Page 13 Acting Mayor Trade stated the one -ton truck with a plow was listed as a high priority for replacement. She asked if this would need to be replaced this year. City Administrator Dickinson stated waiting until the end of the year is fine. Due to the light snow season in 2011 -2012 there had not been enough opportunities for staff to work with the ftontend loader for clearing cul -de -sacs, but staff will still look for opportunities to make purchases through the summer. If significant savings can be found he will bring it back. It was the consensus of the Council to wait until the end of the year to purchase the 2013 equipment. Acting Mayor Trade clarified the funds are available for these purchases. City Administrator Dickinson clarified some of the equipment planned for 2013 was included in the 2012 bond sale to take advantage of low interest rates and to eliminate the need to do an additional bond in 2013, but the funds don't have to all be spent in 2012 waiting until 2013 is fine. a 2013 -2017 CAPITAL IMPROVEMENT PLAN DISCUSSION City Administrator Dickinson stated Administration/Finance will distribute baseline worksheets to department heads. Subsequent discussion will center on the 2013 -2017 CIP development calendar and the need of other committees and commissions to start their work. At this time staff would like to secure the Council's priorities to assure that those priorities are taken into consideration while staff prepares the draft 2013 -2017 for a future Council workshop. Councilmember Bukkila suggested the tunnel project be pushed out to a future date. City Administrator Dickinson stated the Public Works campus projects can also be pushed out to a future date. These projects are dependent on development. Acting Mayor Trade asked if the purchase of a new ladder truck could be pushed out to a future date as well. She would like to see the City spend these funds on trails rather than on equipment. The community satisfaction with trails is high and she would like to see Andover maintain this. City Administrator Dickinson stated there is a need in the City for additional field space and this would be looked at. He stated staff would also include discussions with the Anoka County regarding the roads in Andover. He stated staff would study the possibility of adding to the trail system and what sections would be most beneficial. Councilmember Knight stated the City's field shortage problem does need to be addressed. The City can look at solving the field problems in steps by starting with adding fields and working towards a long -term goal of constructing a dome. Andover City Council Workshop Minutes —March 27, 2012 Page 14 Acting Mayor Trude asked if the funds for the playground equipment upgrades could be used for fields. City Administrator Dickinson stated the City may have opportunities to acquire parcels for field development. Councilmember Howard stated the ladder truck purchase could be pushed out to a future date. At this time it is not a high priority. Acting Mayor Trude asked if the City's fire trucks could be retrofitted. Councilmember Knight asked if there is a possibility of purchasing a used ladder truck rather than purchasing a new custom ladder truck. City Administrator Dickinson stated there is not a good market for used fire trucks and a used truck would likely not be an option. He stated the City purchase of a custom ladder truck versus a stock ladder truck could reduce the cost. He stated the City may be able to push this purchase to a future date but staff could look into this with the Vehicle Purchasing Committee. Councilmember Bukkila suggested staff review this item and determine if this should be pushed to a future date or if it should be considered high priority. Acting Mayor Trude asked if the purchase could be spread out over a three (3) year period. She pointed out the purchase price is a significant part of the CIP. City Administrator Dickinson suggested the cost not be spread out over time. He stated the City should be careful with pushing out these purchases as well. Recently a city had decided not to purchase a ladder truck because a neighboring city was going to purchase one. This type of situation can create tensions in Mutual Aid Agreements. Acting Mayor Trude asked if it would make sense to purchase the ladder truck at this time due to the potential of improvements to the Community Center, expansion of the City's outdoor fields, potential dome construction and other larger projects taking place in the future. City Administrator Dickinson stated the City should balance the needs of the community with debt. Staff will look at these items and bring additional information to the Council for consideration. 2012 GENERAL FUND BUDGET PROGRESS REPORT City Administrator Dickinson stated the City of Andover's 2012 General Fund Budget contains total revenues of $9,263,720 and total expenditures of $9,263,720. He provided the General Fund Expenditure Budget Summary through February 2012. He explained the changes that had occurred in the categories: Mayor and Council, Human Resources, Elections and Snow and Ice Andover City Council Workshop Minutes —March 27, 2012 Page 15 Removal. He further explained the Mayor and Council category does include membership dues, the Election fund was budgeted for a general election this year and service organization funding were moved to the general fund. Acting Mayor Trude stated the County has been discussing purchasing new election equipment and having cities make payments to them for this equipment. These payments are proposed to include interest. She requested staff watch this item. FEBRUARY 2012 CITY INVESTMENT REPORT City Administrator Dickinson provided a summary of the City's Investment portfolio including the Investment Maturities summary for February 2012. Investments at 1 st Regents Bank are now down to FDIC insured levels, Klein Bank was added as a banking alternative. DISCUSS 2013 BUDGET DEVELOPMENT GUIDELINES City Administrator Dickinson stated City Administration is starting to focus on the 2013 Annual Operating Budget Development process and is looking to the City Council to establish the Council's guidelines for the preparation of the 2013 Annual Operating Budget. He provided some suggestions for the Council to consider including a commitment to a City Tax Capacity Rate, continuing with the current procurement and financial planning to appropriately expend the open space bond proceeds, a fiscal goal that works toward establishing the General Fund balance for working capital at no less than 45% of planned 2013 General Fund expenditures, a commitment to limit the 2012 debt levy to no more than 20% of the gross tax levy and a commitment to a detailed City debt analysis, a comprehensive review of the condition of capital equipment, a team approach that encourages strategic planning, and a management philosophy that actively supports the funding and implementation of Council policies and goals. He clarified Andover will be decertifying the TIF district 1 -1 at the end of 2012. Councilmember Knight pointed out Andover has the lowest negative impact on market values from 2012 to 2013 of the cities listed. City Administrator Dickinson stated he would look at bringing back some staff in the public works area. There will be a couple of employees retiring this year and more in the future. He stated staff would also work on the conversion from paid vacation/sick time to a PTO system for employees this year. Acting Mayor Trude stated she does not agree with converting to a PTO system because if employees are sick and they do not have sick time available then they will be at work which could make other employees sick. City Administrator Dickinson stated if an employee is sick they need to be sent home regardless of having paid time for it or not. It is up to employees to manage the amount of time off they are provided with. He stated a cost of living increase is expected to be part of his initial budget Andover City Council Workshop Minutes — March 27, 2012 Page 16 proposal this year. This discussion may also be combined with PTO conversion discussion. Acting Mayor Trude stated training for new and senior staff should continue. Councilmember Knight stated he would like to see transit in Andover such as a bus that runs to downtown several times a day as part of the City's Livability goal. He stated with the rise in gas prices there might be more interest in this type of transportation. Councilmember Bukkila stated residents of Andover are not typical commuters because they do not travel from home directly to work. She stated there may be interest but it was not likely there would be enough people to fill a bus eight (8) or more times a day to make a route beneficial. City Administrator Dickinson stated staff could look at the possibility of a bus stop or bus route in Andover. City Administrator Dickinson stated the theme for the 2013 budget will be to focus on basic services. 0 OTHER TOPICS None. ADJOURNMENT Motion by Councilmember Howard, Seconded by Councilmember Knight, to Adjourn the March 27, 2012 City Council Workshop. The motion carried unanimously. The meeting adjourned at 9:27 p.m. Respectfully submitted, Tina Borg, Recording Secretary H