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HomeMy WebLinkAboutWK - October 23, 2012A C I T Y O F ND 0 E 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV City Council Workshop Tuesday, October 23, 2012 Conference Rooms A & B 1. Call to Order— 6:00 p.m. 2. Discuss RFP /12- 31/3535 —1615 Avenue NW (Sports Complex) -Engineering 3. Oak View Middle School Pool Discussion 4. 2013 Budget Development Discussion 5. 2012 General Fund Budget Progress Report © 6. City Investments Review - Administration 7. Other Topics 8. Adjournment X H ANDOVER CITY COUNCIL WORKSHOP MEETING — OCTOBER 23, 2012 MINUTES The Workshop Meeting of the Andover City Council was called to order by Mayor Mike Gamache, October 23, 2012, 6:03 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Sheri Bukkila (arrived at 6:05 p.m.), Mike Knight, Julie Trude, and Tony Howard Councilmember absent: None Also present: City Administrator, Jim Dickinson City Engineer, David Berkowitz Parks and Recreation Commission Chair, Ted Butler Others Mayor Gamache stated staff had provided supplemental information for the closed session. DISCUSS RFP 112- 3113535 —161ST AVENUE NW (SPORTS COMPLEX) City Engineer Berkowitz stated the City Council is requested to discuss the process moving forward on the planning and construction for Project 12 -31, 3535 1615 Avenue NW Sports Complex. Planning and site evaluation has begun on the proposed 40 -acre Sports Complex. Work to date includes a site walk through with the original owner, heating oil tank pumped, existing house evaluation for asbestos and other hazardous material, irrigation well evaluation, and quotes have been received for irrigation well televising and component removal. The next step is to send out a Request For Proposal (RFP) to select a consultant to help prepare a Master Plan and Phase 1 construction plans. Phase 1 is expected to include up to three (3) large soccer /football /lacrosse fields with irrigation and lighting and a class 5 parking lot. He reviewed the scope of services included in the RFP. Those companies interested in the project will be required to attend a pre - proposal meeting at the Andover City Hall at 2:00 p.m. on November 7, 2012, to discuss the scope and answer questions. He reviewed the wells that are on the property and how these could potentially be used to provide irrigation and water to future buildings. Councilmember Bukkila arrived at 6:05 p.m. City Engineer Berkowitz reviewed the timeline for the project including a deadline for receiving RFPs on November 21, 2012, a complete Master Plan deadline of January 8, 2013, and final project deliverable deadline of May 1, 2013. This is a service contract and the City can decide to work with whomever the City desires. He stated the Master Plan would put together something © Andover City Council Workshop Meeting Minutes — October 23, 2012 Page 2 for companies to bid on for construction. It is important to have a pre - proposal meeting and site review so that companies will have the opportunity to review what the project is and ask any questions they may have. This will ensure all consultants have the same information. Councilmember Howard asked how staff had arrived at having three (3) fields on the parcel. City Engineer Berkowitz stated the Master Plan is for the whole site and this would be what the City would like the parcel to include once it is completed. The maximum number of full size fields that could be included in the plan would be three (3) and these are all included in the first phase of development. Councilmember Knight stated an outside consulting firm would be able to view the property and provide a plan that would maximize the parcel. He asked why the City is not doing the design internally. City Engineer Berkowitz stated the City has several projects planned for 2013 and time is an issue. Staffs expertise is more in the sewer and water areas rather than this type of design. He explained where potential parking could be located. He explained there should be enough parking on the site so there would be no street parking. Councilmember Trude stated it is important for the public to see the development of this parcel and know what the City is planning. City Engineer Berkowitz explained there would be neighborhood meetings conducted by the City to engage the residents and gather information about what they would like to see included in the park. There will be two meetings scheduled. He stated the fields would include lighting and irrigation, but the entire project will be done in phases. Councilmember Trude asked if the schedule for having a Master Plan by January would be possible. City Engineer Berkowitz stated this would be a tight schedule. He explained the costs for turf versus sod would be discussed during the process and costs would be reviewed during the construction cost estimate. If the City would like to see additional things such as seating added to the facility this could be looked at during the Master Plan review. Councilmember Howard asked if the pine trees on the property would be preserved. City Engineer Berkowitz stated the lines of pine trees would be looked at and they would © preserve as many as possible. In order for fields to be ready for use in 2014 they would need to be seeded by July 2013 if the City decides to seed versus sod. Mayor Gamache asked when the best time to put an RFP out would be. © Andover City Council Workshop Meeting Minutes — October 23, 2012 Page 3 City Engineer Berkowitz stated the earlier the better. Councilmember Trude suggested the City get the RFP out as soon as possible in order to work with the timeline staff has established. She requested staff ensure the consultants understand the City's goal of including a community area in the park. She suggested including this goal in the RFP. City Engineer Berkowitz suggested a stakeholders group be formed and the Council determine what involvement this group could have in regard to working with the consultants and what the City would like to see included in the design. Councilmember Bukkila stated it is difficult to get people to show up for meetings. Councilmember Howard suggested including a couple of residents in the group. Councilmember Trude stated the Park and Recreation Commission is made up of residents. She suggested the Park Commission be involved in the process. She stated the timeline for including © additional stakeholder meetings is tight. City Engineer Berkowitz suggested the stakeholder meeting could be scheduled from the middle of December to the middle of January. Mayor Gamache suggested pushing the final project deliverable to the City out to June 1, 2014. Park and Recreation Commission Chair Butler stated the Park Commission feels this is a great opportunity for the City and they are excited to be involved in planning this parcel. He stated the Park Commission would also include members from the sports associations and these discussions could be included at the Park Commission workshops. Mayor Gamache stated the stakeholder group could include the Park Commission and members from the sports associations and they could meet from the middle of December to the end of January. He suggested the last meeting in January be a joint meeting with the City Council. Councilmember Trude stated a Councilmember could be added as a liaison for the Council Park and Recreation Commission Chair Butler stated the Park Commission would add extra workshops to their schedule. City Engineer Berkowitz suggested the Park Commission hold a workshop by the end of November in order to brainstorm about the project prior to meeting with the consultant. Mayor Gamache stated the Council had discussed a possible trail through the wooded area. © Andover City Council Workshop Meeting Minutes — October 23, 2012 Page 4 Park and Recreation Commission Chair Butler stated the Park Commission had discussed having open space for additional practices. Councilmember Trude stated she would approve Park and Recreation Commission Chair Butler, Todd Haas, and City Engineer Berkowitz working on this project and reporting to the City Council. She stated she would be open to having smaller open space areas that could be used as practice areas. Mayor Gamache clarified the Park Commission would have a workshop by the end of November to look at what the Council would like to see included in the project and possible layouts. He stated the Council would like to be sure there is adequate parking included in the design. It was the consensus of the Council to recommend the Park and Recreation Commission work with the sports associations and the consultant during workshops from the middle of December to the end of January with a joint meeting with the City Council at the end of January. SOUTH COON CREEK DRIVE DISCUSSION City Engineer Berkowitz explained the recent rain activity had created some problems with the reconstruction projects. The City had done hydro seeding in the projects and the rains had washed the seed away. The contractor will need to return and reseed the areas. At this time the City would have the option to sod these areas but it would cost an additional $15,000. There are some residents that would prefer sod and others that prefer seeding. Councilmember Trude suggested putting in sod for those residents that would prefer it Councilmember Bukkila asked how the additional 25% of the costs would be portioned out and why the City would add an additional cost to this project. City Engineer Berkowitz stated the 25% of the cost for the sod would be included in the assessment and this would be paid for by all the benefiting properties in the project. Staff is recommending the project area be reseeded. A straw fiber blanket may be needed to keep the seed in place. The problem with reseeding is the property may need to be reseeded several times in order to get the turf the residents are happy with. Councilmember Bukkila asked when the residents had been informed the project would be hydro seeded versus having sod laid. City Engineer Berkowitz stated residents had been told the property would be returned to the © same or better condition prior to the beginning of construction. The residents had not been told what method would be used for this restoration. The City's practice has been to use the hydro seeding method in these types of projects. © Andover City Council Workshop Meeting Minutes — October 23, 2012 Page 5 It was the consensus of the Council to continue to have the project area reseeded. OAK VIEW MIDDLE SCHOOL POOL DISCUSSION City Administrator Dickinson stated at the September 25, 2012, City Council workshop meeting there was consensus to direct staff to look into the swimming pool at Oak View Middle School. Since the workshop staff has initiated discussion with the Anoka- Hennepin School District Superintendent and the Andover YMCA Executive Director. The Anoka - Hennepin School District Superintendent indicated that the School District would be open to discussions with the City, and directed City Administration to have further discussions with School District staff. The Andover YMCA Executive Director was open to discussions of expanding our current partnership and to work towards opening the Oak View Middle School pool. He explained the pools that are currently used for practices. He also stated there are a couple of these pools that are in need of repairs and this could have a significant impact on the Oak View Middle School pool. If these other pools close there is a possibility that other schools could use the Oak View pool for their practices. Staff has been told that the Oak View Middle School pool could be used for competitions. The YMCA may have the opportunity to offer swimming lessons and water safety classes at this location. City Administrator Dickinson asked if the Council would be Qinterested in partnering on this project if the pool would not be opened for open swim to all residents. The school would like to provide the Andover Swim Team with the first opportunity to schedule their practices. Community Ed would also be interested in providing swimming lessons. Councilmember Bukkila asked where Community Ed gets their funding from. City Administrator Dickinson stated most of their funding comes from a levy. Councilmember Trade stated the Community Ed program does not allocate the funds they receive based on the number of kids in the community because Andover had a large amount of kids but does not receive a large amount of the programming. City Administrator Dickinson explained the funds are levied on a per capita basis and this is set by the State. Mayor Gamache asked if the previous concerns of access, traffic, and parking had been discussed. City Administrator Dickinson stated the school does not see these as huge problems that could not be resolved and they would need to be discussed. They also do not believe there would be © significant problems with parking. Councilmember Trade asked if it would be logical to assume that opening the Oak View Middle School pool could be a conclusion the School District would come to with the potential closing © Andover City Council Workshop Meeting Minutes — October 23, 2012 Page 6 of other pools do to maintenance problems. City Administrator Dickinson stated this was possible. Councilmember Bukkila explained she supports staff working with the YMCA and the Anoka - Hennepin School District in trying to find an arrangement that may benefit them but she would not support the City getting involved in operating the pool or providing additional funding for it. This would be out of the City's scope. Councilmember Trude asked if the YMCA or the School District would be able to make enough to support operating the pool. City Administrator Dickinson stated the total hours available and what the School District would need would have to be evaluated by the YMCA to determine if their programs could fill the remaining hours. Councilmember Howard agreed with Councilmember Bukkila and would like to see City Administrator Dickinson continue to facilitate the discussions with the YMCA and the School District but he would not support the City providing financial support. OTHER TOPICS Parkside at Andover Station City Administrator Dickinson stated the number one request Capstone has received at the Parkside at Andover Station development has been for 2 -story homes. Capstone would like to amend the PUD to allow for the construction of 2 -story homes in a portion of the development. They are proposing to do full basements with egress windows and also some lookouts. These homes would fit on the parcels. Councilmember Knight asked what these new homes would sell for. City Administrator Dickinson stated the 2 -story homes were expected to sell for $200,000 to $250,000. Councilmember Bukkila stated these home styles would work in the neighborhood. Councilmember Howard stated he would agree in a designated area. He expressed concerns that the parcels were not large enough if the garage needed to be stepped down to meet the basement. © City Administrator Dickinson stated he would discuss this concern with Capstone, but he thought that was a home buyers issue. © Andover City Council Workshop Meeting Minutes — October 23, 2012 Page 7 Councilmember Trude stated as long as these home were along the west edge of the development she would support an amendment. Genthon Ponds Garage City Administrator Dickinson stated there is a garage that had been constructed in 2003 and it was recently discovered that it had been built on the neighboring property. The owner of the garage had located a pin and provided the City with a drawing on the proposed location of the garage based on this pin. The pin that had been located at that time was the corner pin for a different parcel. The City had approved the footings before the garage had been constructed. At this time the property owners are unable to refinance or sell their properties due to the title problems created by this garage. The City does not require a survey for all structures but they should be required for those structures proposed to be close to the property line. The City could work with the residents to change the property lines so that the garage is on the property of the owner but the City would need to keep the parcels at 2.5- acres. There is a 5 -foot easement on these parcels and this could be vacated as well. Councilmember Trude stated the garage could be torn down. City Administrator Dickinson explained the structure is on a floating slab and to move it would cost approximately $5,000 plus the cost of a new slab. Councilmember Howard stated the most cost effective solution would be to move the structure into the correct location. CLOSED SESSION Mayor Gamache recessed the City Council workshop meeting at 7:33 p.m. to a closed session of the City Council to discuss Open Space Property Negotiations for PID #'s 11- 32 -24 -32 -0001, 11- 32 -24 -31 -0001, 11- 32 -24 -24 -0001, and 11- 32 -24 -22 -0001 and Property Negotiations for PID #29- 32 -24 -44 -0022. The City Council reconvened at 7:43 p.m. 2013 BUDGET DEVELOPMENT DISUCSSION City Administrator Dickinson stated the City Departments continue to analyze their proposed 2013 Annual Operating Budgets. The City Council approved the health insurance renewal at the October 16`h City Council meeting. This renewal was at a 2% increase and Administration © will make the necessary adjustments to the budget since a 10% increase was anticipated before entering negotiations. The percent of 2013 General Fund Expenditures reserved for fund balance is at 45 %. Based on the increase in building permits and charges for services over the projected amount the City is currently $300,000 ahead of last year's amounts. The City will begin looking © Andover City Council Workshop Meeting Minutes — October 23, 2012 Page 8 for a Building Official at the end of the year in order to have someone hired and trained before the current Official retires. Councilmember Knight asked if the City 45% general fund balance amount is reasonable. City Administrator Dickinson stated the City had maintained between 30% to 35% and has recently increased this to between 40% and 45 %. The State and auditor recommendation is 50 %. If the City continues to maintain 45% the City's rating may at some point increase its bond rating to AAA. 2012 GENERAL FUND BUDGET PROGRESS /SEPTEMBER 2012 REPORT City Administrator Dickinson stated the City of Andover 2012 General Fund Budget was approved with total revenues of $9,263,720 and total expenditures of $9,263,720. The 2012 expenditure budget currently is amended to $9,298,720 acknowledging $35,000 of 2011 budget carried forward. He reviewed the budget summary totals and stated the City is currently $300,000 ahead of last years figures due to the increased number of permits received. a SEPTEMBER 2012 CITYINVESTMENT REVIEW City Administrator Dickinson stated a summary report of the City Investment portfolio to the Governing body is a recommended practice and often viewed positively by rating agencies. He provided the Investment Maturities Summary for September 2012, the September 2012 Investment Detail Report, and the September 2012 Money Market Funds report. The City Council recessed at 7:59 p.m. The City Council reconvened at 8:06 p.m. OTHER TOPICS Recreation Facility Tax Abatement Bonds Mr. Mark Ruff from Ehlers and Associates, the City's Financial Advisor explained the City currently has lease revenue bonds for the debt on the Community Center. The situation with the City of Vadnais Heights has impacted the bond market and investor's views on lease revenue bonds. The City refinanced their current lease revenue bonds in 2006 and 2007 and the next call date is 2014. The Recreation Facility Tax Abatement program would provide the City with an opportunity to refinance these bonds and save approximately $750,000 in interest expense over the term of the bonds. The Recreation Facility Tax Abatement Bonds can be used to finance public improvements and the Community Center would meet these requirements. The residents would not be taxed any more and there would be no changes to their property tax statements. The City would need to hold a public hearing and pass a resolution including the terms of the Andover City Council Workshop Meeting Minutes — October 23, 2012 Page 9 bond and the findings regarding the public benefit. He explained the City would be purchasing the facility from the EDA. Councilmember Trade asked if this would refinance all of the City's lease revenue bonds. Mr. Ruff stated the City could call the current bonds early and refinance them or the City could wait and refinance them when they are called in 2014. He stated the Recreation Facility Tax Abatement bonds have been used by other cities including Woodbury, Duluth, and Burnsville. He explained a project area would need to be designated and this would include the benefiting properties. The taxes for the people in this designated area would not be changed. Residents need to be assured they are not being taxed any differently. Mayor Gamache asked if it would be better to wait and include this with the other expansions the City has planned. Mr. Ruff stated the total amount of the bonds the City can have cannot exceed 10% of the next tax capacity. The City of Andover could finance annually approximately $2.3 million and the current lease revenue bonds would cover approximately half this. The City could issue ® additional bonds when these future qualifying projects are done. This program is not the same as the TIF program. There would be no differences in residents tax statements. Mayor Gamache asked what the risks would be with this change. City Administrator Dickinson stated the City would be making a commitment not to walk away from the Community Center. The City would risk the current low interest rates if it decides to wait until 2014 on refinancing the current lease revenue bonds. Councilmember Trade suggested based on the current rates the City look at a bond for purchasing the fire truck or the expansion of City Hall or constructing a road from the west with the Community Center at this time. Mayor Gamache asked what the next steps would be. City Administrator Dickinson stated staff could look at the current rates and bring a recommendation back to the Council for consideration. It was the consensus of the City Council to direct staff to review the current rates for a Recreation Facility Tax Abatement Bond to refinance the Lease Revenue Bonds the City currently has. © Continuous and Non - Continuous Hours of Operation Discussion Councilmember Trade stated the Planning and Zoning Commission had held a public hearing and would be making a recommendation to the City Council for the potential problems with Andover City Council Workshop Meeting Minutes — October 23, 2012 Page 10 hours of operation for Black Friday and the holiday season hours. She stated the City Council had talked about the problems with these hours and a special permit process. Councilmember Bukkila stated it had not been talked about prior to passing the definitions. She had brought it up at the Council meeting and she had pointed out that this had not been considered. She had recommended at that meeting this and other potential impacts be looked into and considered prior to the adoption of the definitions. She stated this is a discussion that should take place after the Council has reviewed the information from the Planning and Zoning meeting that was held tonight. City Administrator Dickinson stated he did not know the results of the Planning and Zoning meeting tonight. He presented three (3) options the Council could consider to address the concerns with the current holiday shopping season. He stated the City could add language similar to that found in the sign code that would allow for a special permit, the City could decide not to enforce the current definitions for hours of operation for this holiday season, or the City could consider adding a footnote to the use chart that would allow retail operations the opportunity to operate holiday hours during a predetermined time frame. ® Councilmember Knight asked how legitimate 24 -hour businesses such as hotels would be able to operate in the General Business District. City Administrator Dickinson stated the Planning and Zoning Commission is currently reviewing this and discussions have included identifying these types of businesses individually or these types of businesses could operate under a CUP that would define the hours of operation. Councilmember Trude stated the only way Andover would get a hotel is if Kottkes would sell their property. She stated other communities are struggling with keeping their hotels open. She stated the business community needed to understand there was no intention on the part of the City to not allow them to operate extended hours for the holiday season. Councilmember Bukkila stated when the City passed the hours of operation definitions prior to considering the impacts sent a very distinct message to the businesses in the community. These definitions were proposed simply to limit one business and the impacts these changes would have on the rest of the community had not been considered. Mayor Gamache suggested staff get the results of the Planning and Zoning Commission meeting and other possible options to the Council for discussion. Councilmember Trude stated she would support the footnote that would allow for special hours during the holiday season. She said Target had violated the hours of operation last year and there had not been any negative impact to Target then. City Administrator Dickinson clarified Target had not violated the hours of operation last year Andover City Council Workshop Meeting Minutes — October 23, 2012 Page 11 but with the new hours of operation definitions they would not based on the hours they would like to operate for Black Friday. He stated at the workshop with the Planning and Zoning Commission staff had introduced the exception language concept but had elected to move forward with a fully permitted process rather than allowing exceptions. Councilmember Trude stated there was no intention to take away the ability of retail stores to operate extended hours a couple of times a year and this should be conveyed to the business community. It was the consensus of the Council to direct staff to put together additional information regarding the last Planning and Zoning Commission meeting and possible options regarding the hours of operation exceptions for the 2012 holiday shopping season. Development in Andover Councilmember Howard asked the Council to consider options for attracting new developers to Andover. There are no developers currently looking at Andover and there is a low lot inventory. The City needs to think about this and try and stay ahead of the curve if they are going to attract developers to Andover. Councilmember Bukkila suggested a prosperous commercial area and a less restrictive general business district would be beneficial in attracting new commercial and residential developers. City Administrator Dickinson stated this would be a good topic for future discussions. He stated the way of doing business over the past 5 years would no longer work. Entry-level builders are not able to get the financing needed for a large development. If credit does not start freeing up the only type of home builders that would able to do developments would be the national builders. The City could look at changing their letter of credit requirements. He stated staff would start talking with developers to see what would work and bring this information to the Council for additional discussions. ADJOURNMENT Motion by Councilmember Bukkila, Seconded by Councilmember Howard, to Adjourn the October 23, 2012, City Council Workshop. The motion carried unanimously. The meeting adjourned at 8:44 p.m. Respectfully submitted, 10 Tina Borg, Recording Secretary