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HomeMy WebLinkAboutWK April 29, 2003 ~ CLQ....i ~ ::'-2.0-Cð CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N. W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923. WWW.C1.ANDOVER.MN.US Special City Council Workshop 2003 Budget Reduction Plan Tuesday, April 29, 2003 - 6:00 p.rn. Conference Room A 1. Call to Order 2. Adopt Agenda 3. Community Center update 4. 2003 Budget Reduction Plan a. Budget Reduction Financial Analysis b. Public Utility Franchise Fee Analysis c. Stonn Water Utility Rate Analysis d. Staffing Ratio Analysis e. Anoka County Sheriff Contract 5. Other Business 6. Adjournment CITY of ANDOVER SPECIAL CITY COUNCIL WORKSHOP - APRIL 29, 2003 - MINUTES A Special City Council Workshop was called to order by Mayor Mike Gamache at 6:02 p.m., Tuesday, Apri129, 2003 at the Andover City hall, 1685 Crosstown Boulevard NW, Andover, MinnesotL Councilmembers Present: Don Jacobson, Mike Knight, Ken Orttel, Julie Trude Councilmembers Absent: None Also Present: Jim Dickinson, Finance Director John Erar, City Administrator Frank Stone, Public Works Superintendent Dave Almgren, Building Official Lee Brezinka, Assistant Finance Director Dan Winkel, Fire Chief Will Neumeister, Community Development Director Dana Peitso, Human Resources Manager Dave Berkowitz, City Engineer Others Adopt Agenda Motion by Orttel, seconded by Jacobson to adopt the agenda as presented. Motion carried unanimously. Community Center Update Mr. Erar discussed three different program models for the community center that have been discussed by the Facilities Task Force. Model #1 fits the essential city and YMCA needs. Model #2 fits the city's programming needs but does not fit the YMCA's needs. Program Model #3 provides minimum area for the city. This model meets the $12,000,000 figure, however it has low quality materials and does not meet the YMCA needs. He stated that all of the program models represent different levels of space requirements. Mr. Erar noted that from the beginning of the process the city wanted to establish what was needed by the YMCA and they have provided that information. Discussion centered on whether the air-handling units would be rooftop or if a room would be built within the center for the units. If they were inside the center they would require 5000 square feet. Special City Council Workshop April 29, 2003 - Minutes Page 2 Councilmember Jacobson stated that 100king at the three models, the YMCA said they were interested in Model #1. Ifwe decide to go with Model #2 or #3, the YMCA will not participate. His concern is that they pay their fair share, not only for the bonds but also for the maintenance of the facility. Councilmember Trude noted that the decision is which model the city will go with. Residents are thinking that this is going to take up the whole city hall site and she is also concerned that the cost is more than was discussed a year ago. Mr. Dickinson stated that the original assumption was that there would be $500,000 from park dedication fees and $2,000,000 in donations. Since that time, the numbers have been refined and donations are now projected at $3,500,000. Using program model #1, with the YMCA participating, the projected budget is 16.5 million dollars with a 30 year bond which would be $39.00 per year on a $200,000 home. At present, staff is assuming that the YMCA will pay 60% of the cost with the city paying 40%. Model #2 is 14.7 million with a 20 year bond. On a $200,000 home the tax increase would be $95.00 per year. Option #3 is 13.5 million with a 20 year bond which would be $83.00 per year on a $200,000 home. Mayor Gamache noted that for the first five years the YMCA will be paying $590,000 per year and then they will be paying $890,000 per year after that. With the YMCA involved we will have the facility everyone' is talking about. Councilmember Knight stated that we would not have the two-field field house. He explained that the stakeholders want two soccer fields. Ted Rozeboom, Rozeboom-Miller, presented site plans for the city hall complex that include the community center. Craig Kronholm, R1M Construction stated that at the last meeting he was instructed to eliminate the soft costs. There is now a 5% contingency in the budget. Councilmember Jacobson asked what types of materials will be used for the construction. Mr. Kronholm explained that durability has been discussed. There will be very little drywall in the building. Mr. Rozeboom noted that it would be tilt up pre-cast concrete. The field house would have steel bar joists. The 20,000 square feet for meeting rooms, locker rooms and the fitness area could be masonry. He explained that the only thing not included in the 16.5 million dollar facility is the YMCA's furnishings, fixtures and equipment which will be paid for the by YMCA. He stated that the access to the site will need to be improved and the parking is short. Mr. Kronholm noted that the amount of space the YMCA is adding is 17,835 square feet. ..~- Special City Council Workshop April 29, 2003 - Minutes Page 3 They have been dealing with the highway department, storm water retainage and parking issues. The three different models are very close to their estimates. Mr. Erar stated that the school officials are willing to pay the costs for their team rooms. Mr. Rozeboom discussed the sketches, noting that Scheme A is unacceptable because of the loss of the ball fields. Scheme Al has the larger field house; Option B takes the building and pushes it south on the site, which reduces the parking but keeps three of the four ball fields. Scheme B 1 is the same as B but without the field house. Site zoning is very important as you don't want north facing entries in this climate. Option C runs north and south but keeps all of the ball fields. Option C 1 has a bigger field house and keeps the three fields. The aquatic center should have a southern exposure. On this scheme the hockey arena takes out a lot of trees. On Option D the field house and ice arena have been rotated. One field would be lost. Councilmember Knight asked if there have been any discussions on traffic flow. Mr. Erar explained that the city will go through its normal process with the Andover Review Committee and a civil engineer will do a traffic study. Dave Aasmus, Saterbak & Associates, stated that he is very pleased with the progress of the capital campaign. However, they are going to be getting behind without the city defining the project. Councilmember Knight felt that the city should have public hearings on the community center so that the public is aware of what is going on. Councilmember Orttel stated that if we don't have a partnership with the YMCA we won't have a project Mayor Gamache stated that the YMCA has to be part of the project and we should go with Program Model # 1. Motion by Jacobson, seconded by Orttel that the only way we will build a community center is subject to the YMCA paying their share of everything and there is no city subsidy for the YMCA. Motion carried unanimously. (Recess - 8:55 p.m.; Reconvene 9:00 p.m.) Consider 2003 Budget Reduction Plan Mr. Erar explained that the Management Team has met several times to review and evaluate the implications of expenditure reductions on current services. The guidelines used to support the 2003 budget reduction plan were to preserve the delivery of essential services to city residents, preserve existing staff levels and to pursue revenue Special City Council Workshop April 29, 2003- Minutes Page 4 enhancement approaches in the form of franchise fees for gas and electric utilities. This would generate $339,000 annually. Staff reviewed proposed budget cuts for their departments. Mr. Stone explained hiring new parks maintenance staff would be deferred. The number of satellites will be reduced. In 2002 the city spent $14,000 on satellites and people didn't use them. Five of the satellites were burned by vandals. The large fields that are busy with sports will have satellites. Council agreed that the number of satellites should be reduced. Mr. Stone also noted that the parks would not be mowed as often as they were in the past. Mr. Dickinson stated that the accountant position in the Finance Department would not be filled. Part-time staff, along with reducing some things in the assessing contract and not attending as many training classes would reduce costs by $27,600. Mr. Berkowitz explained that by implementing the storm water utility fee by July 1, 2003 the amount of money in the 2003 budget could be cut in half. Discussion centered on the storm water utility fee with Mr. Berkowitz noting that if we do not comply with the NPDES rules the city can be sued. Prior to the implementation of the fee a city-wide meeting will be held, a public hearing will be held and then the ordinance would be adopted by July 1, 2003. The storm sewer budget would be eliminated and replaced with this fee. The storm water utility fee could be used to buy equipment. Motion by Orttel, seconded by Jacobson that we put the issue of the storm water management fee for a vote at a future council meeting and adjust the figures so the church rate drops to the same as public facilities. Motion carried unanimously. Mr. Stone explained that 50% of the funding for repair and maintenance of various park structures will be reduced and overtime will be allowed only in the event of an emergency. Motion by Jacobson that we remove the skateboard park and eliminate the attendants from the budget for 2003. Motion dies for lack of a second. This will be discussed at a Council meeting so that the users of the skateboard park will have an opportunity to be heard. Mr. Erar noted that if we do a bi-monthly newsletter we could add more substantive material and save over $10,000. Council agreed. Fire ChiefWinkel stated that equipment expenditures would be reduced, particularly $10,000 for wildfIre gear and some training. Mr. Erar proposed to reduce non-essential expenditures for personnel retention and benefit programs so that we are able to maintain our existing staffmg levels. Councilmember Jacobson suggested reducing the program by only half. Mr. Erar explained that if that were done, we would need to fmd some other budget item to cut. Mr. Erar noted that he has spoken to Tom Durand and Steve Kerr of School District #11 regarding the reduction of the city's contribution to the community education programs to half of the budgeted $37,500. They have stated that the after school programs would either be reduced or some of the fees would be increased. Julie Johnson, School District #11, stated that fees for summer classes have already been increased $6.00. Council agreed with the rest of the proposed reductions including the following: a) reducing or deferring capital equipment expenditures by $127,635; b) reduce and reallocate funding for seal coating and crack filling; c) reduce contingency account funding by $10,000 and eliminate the contingent personnel funding for a proposed Community Services Director; d) reduce expenditures for the Fun Fest by $4,000; e) defer updating the zoning ordinance and reduce other department expenditures which will reduce the budget by $27,000. Implementation of Franchise Fees Councilmembers Jacobson and Knight stated they would not be in favor offi-anchise fees for natural gas and electric services. Mr. Erar explained that the city has a lot of right-of-way that is being used by the utility companies for free. Mr. Erar stated that the proposed budget cuts would be brought back for Council approval once the legislature decides how much they are going to cut. Motion by Orttel, seconded by Jacobson to adjourn. Motion carried unanimously. Meeting adjoumed at 10:35 pm. Respectfully submitted, ~.()& Vicki Volk City Clerk - - .---