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HomeMy WebLinkAboutWK August 25, 2003 C I T Y o F ~ NDOVE M ~1:tu) q ~1(,,-o3 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US CITY COUNCIL WORKSHOP MISCELLANEOUS BUSINESS ITEMS Monday, August 25, 2003 -7:00 PM AGENDA 1. Call to Order 2. Approve Agenda 3. Proposed 2004 Budget Presentation 4. Fire Station #3 Project Update - Fire 5. Amend Buildability Requirements Rural Lots less than 2.5 Acres - Planning 6. Designate Rural Reserve for Properties North of 161" Avenue - Planning 7. . Community Center Project Update - Administration a. Community Center Survey b. Draft Business Plan 8. Other Business Items 9. Adjourn CITY o F NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US CITY COUNCIL WORKSHOP - AUGUST 25, 2003 MINUTES A workshop of the Andover City Council was called to order by Mayor Mike Gamache on August 25, 2003, 7:03 p.m., 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: City Administrator, John Erar Finance Director, Jim Dickinson Fire Chief, Dan Winkel Public Works Superintendent, Frank Stone Community Development Director, Will Neumeister Assistant City Engineer, Todd Haas Building Official, Dave Almgren Human Resources Manager, Dana Peitso City Clerk, Vicki Volk AGENDA APPROVAL Mayor Gamache noted the architects from Buetow and Associates were available to update Council on the progress of the new fIre station. He asked that item 4 be placed at the beginning of the agenda to accommodate them. Motion by Knight, seconded by Orttel, to approve the Agenda as amended. Motion carried unanimously. FIRE STATION #3 PROJECT UPDATE Fire Chief Winkel introduced the representatives from Buetow and Associates Architects and noted their presentation would consist of the potential site plan and also a conceptual building footprint or design. He stated staff would be seeking input from the Council regarding both of these items. Staff has available some very preliminary budget estimates for the proposed site work, utility installation and building construction. Mr. Winkel indicated staff is requesting direction ITom Council to proceed with the development of the [mal plans and specifications for the new fire station in order to prepare for the formal bid process. - Special Andover City Council ,.;eeting Minutes - August 25, 2003 Page 2 Mr. Winkel noted the concept for the fIre station building brought to attention the purchase or land swap agreement. He indicated the City actually owns the lot to the north where it wishes to build the fIre station. He added the new site would be on 159th and Crosstown and there would be an exchange of properties with the current owner, which was necessary because of changes in the County's access requirements. He noted the City was asking for approval of the Agreement. Staff was also looking for advice regarding any language changes. Councilmember Orttel asked if the road alignment was on the property line and if the City would be required to pay for the whole road. There was discussion regarding the road and intersection on the south property line. CounciImember Orttel asked if the property owner to the south would be affected. Mr. Winkel stated he/she would not be affected. Councilmember Orttel asked about the square footage and if it was equal. Mr. Winkel responded a change was proposed in the lower right comer, as the City needed to keep a square exchange to make it work. Councilmember Jacobson asked, if that were not a squared-off piece of land, would the City share in the cost when it was built. Mr. Winkel replied there would not be much road cost for the City, as that should be the developer's cost. He indicated the location of a 20-foot driveway that probably would be needed for access to the site. There was further discussion regarding the access roadway and the road along the southern part of the property line. Councilmember Orttel noted the City needs the frontage on the whole side to build and, if the resident to the south decided to remain as is, some of the property would need to be taken and a line put through as part of the parking lot. Mr. Winkel responded there would be difficulty putting in a roadway without the City donating some of the property. Some of the property south of the roadway is needed and negotiations are currently taking place. City Administrator Erar stated the road along the south would still be developed without the curve, even if the Miller property never happened. He added the City was not going to do anything it did not have to do. He indicated an adjustment to the site plan that could be made. He noted the property was needed for 35 feet of right of way. The City only needs the driveway and, if the developer started developing, his costs were to develop the roadway. Councilmember Orttel noted parking spaces would be lost if the road went straight through. Mr. Erar replied it would be adjusted and it was realized things could change. Special Andover City Councit ..,eeting Minutes - August 25, 2003 Page 3 Councilmember Orttel commented the City would be "locked in" if this were approved. Mr. Erar responded that was not necessarily true, as there was a tentative agreement the legal would be amended to the changed reality. Mr. Erar indicated the only cost, other than the building development, would be the improvement of the roadway. He added the only thing the site requires is driveway access to the discussed roadway. He stated the County was on board and the City Attorney was ready with the language. Councilmember Jacobson asked if there were any other side agreements. Mr. Winkel replied there were not. Mr. Erar noted he would have to petition for the improvements. Councilmember Trude stated this was a land exchange and both parties are getting something. Discussion followed regarding a symbolic sale. Mr. Winkel indicated something [mal would be brought to Council if there were additional language. Motion by Knight, seconded by Trude, to approve land swap oflegally described property in Exhibit A of the Property Exchange Agreement from the City of Andover to Mark of Excellene Homes, Inc., and acceptance oflegally described property in Exhibit B of the Property Exchange Agreement ITom Mark of Excellence Homes, Inc., to the City of Andover. Motion carried unanimously. Mr. Winkel introduced David OIds and Modris Feders ITom Buetow and Associates Architects. Mr. Feders stated he wanted to bring Council current information regarding the project and initial meetings have been held with staff and the fIrefighters. He noted a number of alternatives had been created for staff review of the site plan, building floor plan, building construction and the image projected. Mr. Olds indicated the drawings were still in the sketch plan stage. He presented their proposal for the new fIre station, which included the following details: the station was to be placed at an angle on the site; proximity of the residential areas surrounding the site was taken into consideration; driving pattern of trucks and parking considerations; discussion of the goal to save trees, including trying to keep existing trees in the backyards bordering the site; consideration of the height restrictions in the building ordinance; raised elements along the top of the building used to bring in natural light, which was a cost-saving measure; brick exterior, which would give the building a long- term durability; sloped roof to limit water problems. Mr. OIds also showed a sketch plan of the interior of the building. He felt the drawing showed a utilitarian use of space, with everything working off the bay. A small paramedic room was included to provide a reason for the ambulance to stay in that part of Andover. An alternative would be to use it for a second office. - -- Special Andover City Counc¡, odeeting Minutes - August 25, 2003 Page 4 Mr. Winkel noted approximately 10,000 square feet resulted ITom the proposed plan. He added the size would be revisited, as discussion had taken place regarding cutting back some of the rooms. Councilmember Trude asked if there was concern about air quality issues with the trucks running. Mr. Winkel responded the ventilation systems turns on automatically when carbon monoxide is detected. Councilmember Trude asked about the other rooms in the building. Mr. OIds discussed the installed sensors and systems that would eliminate gases in the building, adding the sensors detected problems at both high and low levels of the building. He noted a circulation system turns on automatically when the gas reaches a certain level. He indicated there would be some sharing of air when the doors open and close; however, the doors would be sealed with a rubber bottom. There was discussion regarding the air ventilation in the current fIre station. Mr. Winkel noted that issue is part of the current development process. There was further discussion regarding the interior of the building and the uses of the adjacent rooms. Councilmember Jacobson asked if the ambulance company should be charged for the area provided for the ambulance crew as they were privately owned. Councilmember Jacobson asked if all the necessary equipment, furniture and any other items needed to make the building workable were included in the presented costs. Mr. Winkel responded the amount included air compressors, furniture, etc. Mr. Feders noted the trucks would not be included in the amount. Councilmember Jacobson asked if the station needed to be so large, as it was a satellite facility. Mr. Winkel replied he felt it did, when considering the future growth of the City. He added the bays would actually be pretty full. Mr. Erar explained a space analysis study had been done by SEH, an independent consultant and they had advised 10,000 square feet was appropriate. Councilmember Jacobson asked if the center cupola and long windows across the top was more cosmetic than a cost savings. He asked if the costs saved by eliminating the features would be more than using the lights. He added it would be dark half the time and thought the lights would be used anyway. Mr. Feders responded one of the considerations when planning the design was the architecture be articulated enough so it did not look like a big box among expensive homes. He noted the intent was that people would see the design as a rustic, romantic train stable. Special Andover City Council Meeting Minutes - August 25, 2003 Page 5 Councilmember Jacobson indicated it looked like a horse barn. Mr. Feders responded this was the design to which most people gravitated. Councilmember Jacobson stated he did not buy the argument about natural lighting. There was discussion regarding the cupola and windows across the top of the building. Mr. Feders indicated different versions of the plan could be done. Mr. OIds felt they were the signature element of that particular design. Mayor Gamache stated the intent was to make the station look as nice as possible for the surrounding homes. Mr. Feders and Mr. Olds showed two additional sketch plans for Council to consider. Discussion followed regarding these plans. Mr. Erar explained one oftbe features incorporated was tbe sloped roof, which was part of the cost factor. He noted there were designs that included a flat roof, which would provide a building similar to Station 1. Councilmember Jacobson responded he did not want a flat roof for the station. Mr. Winkel noted the exterior plan was to use a block and brick combination. Mr. OIds added the type of brick was still being considered; however, they were leaning toward red brick. Mr. Feders added the color of the brick was still an open item. Councilmember Trude asked if it would be less costly to have the air-conditioned parts of the building on one side. Mr. Erar responded this plan was the most efficient. Councilmember Trude noted the surrounding area around the fIre station would not be a rural area. There was further discussion regarding sketch plans and how they would work on the site. Mr. Feders stated alternatives to the cupola could be considered. Councilmember Orttel inquired about the study that had been completed, as he thought it was absurd to plan a vehicle base as large as the base station. Mr. Winkel discussed reasons for the size of the building. Councilmember Orttel indicated he did not want to pay square footage costs for storing trailers. Mr. Winkel noted this station needed to be more self-sufficient than most satellite locations and space would be needed for at least three or four vehicles. Councilmember Orttel stated operating the building was a problem, as the City did not have the money to run it now. He asked about the ultimate costs of building operations. Special Andover City Council Meeting Minutes - August 25, 2003 Page 6 Mr. Erar explained the reason the City was at this point was Council had approved the updated study, which indicated these were the necessities associated with the future needs of the City. He added the guidelines ofSEH were being followed. Councilmember Orttel indicated half the bays would be built for storage. There was further discussion regarding the need for storage. Mr. Erar discussed property development within the coverage area within the next four to SIX years. Councilmember Orttel restated he thought the station was too large and the current residents should not be paying for the needs of the future. Mr. Erar replied the lease revenue bond would be spread out over 20 years; consequently, not oIÙY current residents would be paying for the fIre station. Councilmember Orttel stated there would be discussion of the budget later and money would not be available. Finance Director Dickinson noted this would actually be a GO bond, which would be obtainable if an approved CIP plan was completed. He explained the City had a bond retiring when this bond would be issued; therefore, the debt service would be consistent or even less, based on the payment structure. Mr. Erar indicated another analysis could be completed if Council was arguing the size was too large. He noted the area that could be reduced was the number of bays, as the other areas would be difficult to reduce. The fIre station could be designed for two bays instead of three, which would be inconsistent with the study and could result in an equipment "scrunch." Councilmember Orttel indicated Fridley's study oIÙY asked for 3,000 square feet. Mr. Erar responded the City covered a much larger area than Fridley. Councilmember Knight noted there would be fewer rooms along the bay area if this were a "similar functioning" station in the inner suburbs, as the buildings tended to be smaller closer to the inner city. Mr. Winkel replied this plan was being proposed because the City had an opportunity to entice an ambulance to be located at the facility for longer periods of time. He stated he felt that was worthy of discussion. Mr. Winkel noted the architects brought pictures of stations in North Branch and Oakdale. There was discussion regarding the use of space in those facilities. Mr. OIds discussed the City's access to its fire stations and Fridley's setup for fIre fighting. Councilmember Jacobson asked what the cost per square foot was for the two stations being discussed. Mr. OIds responded the North Branch fire station was $95 per square foot, which did not include the cost ofland or furniture. He added the equivalent would be $110 per square foot for the City's station. Special Andover City Counch ..Jeeting Minutes - August 25, 2003 Page 7 Mr. Erar explained the North Branch station was the lowest cost across the board, as $143 per square foot was the average. He indicated costs could be lowered if the plans were changed to include a flat roof and eliminate the brickwork, which would make the building out of place in the neighborhood. He added, in terms oflongevity, $130 per square foot should be expected. Councilmember Knight asked if "tilt-ups" were considered. It was noted a tilt-up system was not economical in this case, as fIre stations done with "tilt-ups" were generally linear without much office space. Mr. Erar noted lower cost materials were planned for the exterior, other than on the front that faced the intersection. There was discussion regarding the GO bond. Mr. Erar noted a huge tax increase would not be seen because of the fIre station. Mr. Erar asked if Council wished staff to go back and discuss two bays instead of three. Councilmember Orttel responded it should not be discussed ifhe was the only one objecting. Councilmember Orttel asked if the building could be planned for expansion. Mr. Winkel replied it would have to be built for expandability if the station were built with two bays. He added the current plan should serve the City for many years into the future. Mr. Erar noted a larger building would not necessarily fit on the lot. Mr. Winkel added staff was trying to maximize current efficiency. Mayor Gamache stated he was comfortable with the size recommended, as he agreed it would provide sufficient service for 20 to 30 years into the future. Councilmember Trude noted one of the tire stations was being shifted to this location, which would be replacing a 2Y>-bay station. She indicated it did not seem so large when that was considered and she agreed the rooms added were for functional use. Councilmember Trude indicated she did not like the "barn look" but wanted to see a more modem appearance. Councilmember Jacobson agreed the three bays should be kept, even though Council was discussing shrinking some of the other space. He added he wanted the cupola eliminated, as he felt it did not add anything to the building and was not in character with the surrounding area. Special Andover City Counc¡' ."eeting Minutes - August 25, 2003 Page 8 Councilmember Knight agreed he did not like the appearance, as red did not appeal to him. There was discussion regarding the inclusion of the workout room. Councilmember Orttel asked why employees could not drive a few miles to the other station if they wanted to use the exercise equipment. Mr. Winkel responded the workout room would be an incentive for the fIrefighters to be at the station. Mr. Erar noted it was also a health issue for the firefighters. Councilmember Orttel stated he felt it looked like a horse barn. Mr. Erar asked if Council had any problems with considering a flat roof. Councilmember Orttel responded a flat roof should not be considered. Councilmember Trude asked if the North Branch model was more attractive. Councilmember Orttel added he thought this design would be "dated" easily. He indicated the building would really look like a pole barn if the cupola were eliminated. Mr. Feders said the plan could be reconsidered; however, the goal was to break up the roof so the building did not have the "horse-barn look." Councilmember Orttel discussed the problem of trucks not being used and concern that the equipment would grow to fill the space. Councilmember Jacobson stated he felt one of Council's responsibilities was public safety. He added safety issues should be the priority instead of aesthetics. Mr. Winkel indicated staff would work with the architects as diligently as possible. He noted the plan is to bid this fall, as the market is excellent. Mr. OIds indicated they would take another look at the plan and come back to Council. Mr. Winkel stated spring was the original schedule. Mr. Erar suggested this issue be brought to the next Council workshop, at which time another version would be presented. He added Council should "feel good" about the project; however, it would be the most cost effective to act as soon as possible. DESIGNATE RURAL RESERVE FOR PROPERTIES NORTH OF I6IsT A VENUE It was decided to move to agenda item 6, as parties were in attendance wishing to address this issue. Cornmunity Development Director Neumeister noted Council discussed this issue at the August 6, 2003, meeting, where staffhad been directed to meet with the property owners in the area north of 161 st A venue on the west side of Hanson Boulevard to confIrm which Special Andover City Council ..,eeting Minutes - August 25, 2003 Page 9 property owners were interested in having sewer capacity reserved for future urban development. Mr. Neumeister stated, after discussion with the property owners in that area, it was determined only a few property owners were interested in having sewer capacity reserved. He presented a map identifYing the properties and the acreage staff felt was capable of having service by gravity sewer. He added the amount of land that was capable of being served was calculated at 22 acres. Each of the properties that would be included for future sanitary sewer had only a portion of the land capable of gravity extended sewer service. He explained 22 acres of possible development were calculated at 2.1 units per acre, equaling approximately 46 units of potential development. Mr. Neumeister noted a letter from Jack Walkky, representing Pentagon Holdings, which indicated he would like a total of 128 units of sewer capacity and was ready to initiate a preliminary plat for construction next year. He indicated, with the 128 units Pentagon Holdings was seeking and the 46 units from the 22 acres ofIand, only 174 units of capacity would be used of the total 185 units calculated as available. He stated it was safe to assume there would be an additional 11 units of capacity available for this area, should present needs change. Mr. Neumeister noted intentions expressed by property owners to develop the area north of 161 st and Crane Street might be as much as five to six years into the future. He indicated, depending upon details related to topography and sewer depth, the property owners in that area would be able to have most, if not all, of the urban density development appropriate for this area. He stated the decision by Council as to who should receive the sewer capacity should be finalized in order to bring closure to the designation of property within the rural reserve. Mr. Neumeister requested Council discuss and fmalize a recommendation of which properties should be placed in the "Rural Reserve" area for the area north of 161 st Avenue. Councilmember Trude noted her major concern was placing so many homes between the tracks and wetland with only one entrance. She agreed sewer could be put in that area but stated she had questions regarding the safety of the community. Councilmember Jacobson stated he also had concerns about the proposed plat, but tonight's discussion was to certify the sewer. Mr. Neumeister agreed and noted the fInite details would be resolved when the preliminary plat was presented. Discussion followed regarding areas that could be served by gravity sewer and the location ofIots related to proximity of wetlands and railroad tracks. Councilmember Jacobson asked if the property owners were interested in merging together to develop, instead of developing each small parcel. Mr. Neumeister replied the owners did understand they would have to work together, as only a portion of the - . Special Andover City Council ,.,eeting Minutes - August 25, 2003 Page 10 properties could be developed. He indicated the areas where gravity sewer could be used and where lift stations would be needed. Councilmember Trude restated she wanted to see more than one wày to get in and out of the area. She added it seemed silly to isolate the parcel. Larry Emmerich, 1341-16181 Avenue NW, stated he owns 50 acres and 30 acres is high land that was perfect for building. He indicated which property he owned. Discussion followed regarding various ways to divide the property. There was further discussion about owners interested in building. Councilmember Orttel stated it had been stated emphatically that a lift station was too expensive and now lift stations were being discussed. Mr. Neumeister responded people understood only a portion of the property could receive gravity sewer. Mr. Emmerich noted a number of his neighbors had changed their way of thinking. He stated he had sent a letter indicating he wanted to develop sewer and water. Discussion followed. Mr. Neumeister discussed the cost that would be spread over the areas needing the lift station. Mr. Emmerich stated he felt he had 30 acres of developable upland that could have the gravity sewer. He would like to reserve the right to develop 46 acres ofland, along with 42 acres in another area. Mayor Gamache asked about the gravity sewers in the Whitetail Ridge area. Further discussion followed regarding the properties that could support a gravity sewer. Mr. Neumeister indicated the landowners thought the plan was rational and "doable." A representative from Pentagon Holdings stated his company had worked with wetlands and knew what they could and could not do, adding they knew what was needed for lift stations. He noted they had adjacent properties and did not know how much of those properties were buildable because of wetland delineation. He indicated they were ready to go forward with the preliminary plat and comprehensive plan. Mayor Gamache asked how much was buildable. Larry Emmerich responded approximately 50 acres if the areas needing lift stations were included. Mr. Neumeister pointed out the property being discussed. Discussion followed regarding the number of units and acres involved. Councilmember Trude stated it did not sound like there was a conflict, as both properties discussed could be serviced. Special Andover City Councit ,;Jeeting Minutes - August 25, 2003 Page 11 Mayor Gamache asked if decisions should be made now regarding density before development started, as he did not want to see inequitable situations. There was also discussion regarding lift-station costs being more at one site than the other. Councilmember Orttel discussed how wetlands and parks would affect the City's average density quantity of 2.1 on these sites. He felt the average density should not be forced. Councilmember Orttel suggested negotiations take place immediately if there was any stranded acreage within the sites, as those properties would be landlocked if plans did not include them. Discussion followed regarding number of units in designated areas and parks to be included. Councilmemher Jacobson stated sewer capacity downstream needs to be considered. Mr. Emmerich stated the properties needing lift stations could be included because of the size of the development. A resident with 6.25 acres on Constance Boulevard and Hanson Boulevard noted he could only develop some of his acreage with gravity, according to the study. He stated he would be willing to be involved if the whole piece could be done; however, at this point only 2/3 could be developed. Councilmember Trude noted there was property between the two sites and the resident was somewhat isolated from the project. The resident felt a domino affect would take place, as the next property would then be in a position to say "yes," because of the change of the surrounding character. He felt this "affect" would continue. Mr. Neumeister added property owners had been saying they were willing "to go" if the adjoining property was on board. He indicated the owners understood the cost was going up if a lift station was involved; however, they were willing to bear the cost if everyone was in agreement. Mr. Erar stated there was property that could not have gravity sewer. He noted Council had to decide if they wanted gravity systems in this area or if the opportunity for lift stations would be provided where there was no impetus. He also noted due process was involved. Councilmember Orttel stated 49.5 acres should be allocated north of 161 st to the immediate west to Hanson Boulevard and 161 st. He added the property west of Pentagon's property to Hanson Boulevard would be allocated. Special Andover City Council ..,eeling Minules - Augusl 25, 2003 Page 12 The representative ITom Pentagon Holdings noted there was talk about units and talk about acres. He felt more information was needed before they proceeded with their plat. It was decided problems would be handled when the plat was submitted. Councilmember Orttel commented that, when Council discussed acres, they were discussing units, as they knew how many units applied to an acre. Councilmember Orttel and Councilmember Jacobson indicated they did not appreciate the wording in the letter from Pentagon Holdings, as it appeared the writer was "miffed" with Council for taking so long to make a decision. They noted the decision was complicated and the City's prerogative. They hoped the two parties could work together in the future. AMEND BUILDABILlTY REQUIREMENTS RURAL LOTS LESS THAN 2.5 ACRES Community Development Director Neumeister noted Council had approved an ordinance amendment to reduce the buildable area requirement to 3,600 square feet for rural lots that were at least 2.5 acres in size. He indicated Council asked for additional information on the number of rural properties that were less than 2.5 acres in size. Mr. Neumeister explained it had become apparent the current code section was too cumbersome to be easily interpreted and staff has prepared a City Code amendment that restructures the existing language of this ordinance to make it more user friendly. He noted a provision that would allow existing rural lots that are less than 2.5 acres in size to utilize the 3,600 square-foot buildable area requirement included in this amendment. Mr. Neumeister stated additional changes could be summarized as follows: Some language duplicated from other code sections has been removed or relocated to different code sections. A provision to prevent rural plats within the MUSA has been added to formalize the existing policy. A provision for the wetland buffer area has been added to make this obscure ordinance requirement easier to fmd. Councilmember Orttel asked if the homes on the river are lots that met all the requirements. It was noted the 10ts were platted years ago and did not meet buildability requirements. Building Official, Dave Almgren stated the lots to be discussed were on the curve on 158111. He noted none of the three lots on the cul-de-sac were buildable. Discussion followed regarding buildability on various lots. Councilmember Jacobson asked if the appearance of the lots mattered. Councilmember Orttel asked how many additional lots would be in the City if these were approved. . _ ~~ 4_ Special Andover City Councillt-1eeting Minutes-August 25,2003 Page 13 Councilmember Orttel stated he did not understand how a house could be considered not buildable yet sewers were installed, as the sewer allowed the house to be built. Mr. Almgren responded a building pad could be found if there was a place for a septic tank on the lot Mr. Almgren noted the sewer needed to be installed on virgin ground. Councilmember Orttel replied he thought the issue was not to cut down trees except where the house was built. Discussion followed regarding language removed from the amendment and new language in the amendment. Councilmember Orttel stated the language had been in place for many years and there were reasons for it. Mr. Erar noted Council should review and any changes should be "marked up" and given to Mr. Neuri1eister. PROPOSED 2004 BUDGET PRESENTATION City Manager Erar presented the proposed 2004 budget. The items he presented were the fiscal highlights, Council guidelines, property tax impact, growth implications, tax levy, revenues, expenditures, special tax levies, budget realities and budget strategies, Mr. Erar noted State imposed levy limits would result in the City losing approximately $946,571 (3% inflationary adjustment) in taxing authority on new residential and commercial growth. Mr. Erar stated a commitment to maintain the 2004 debt levy at no more than 25% of the total levy had been met, as the proposed 2004 budget established the debt levy at 15.6% of the total levy. Mr. Erar highlighted the growth percentages in population and housing units, along with accompanying streets, utilities, etc. He also discussed the growth percentages of City services and park-related expenses. Mr. Erar noted Andover is one of the lowest tax rate cities in the area. He indicated the combination of market values increasing and the decrease in taxes hinders the City ITom providing services. Mr. Erar discussed the tax levy composition and highlighted the loss of revenue in areas such as property taxes, licenses and permits, charges for services and miscellaneous revenue. He noted relocation from other funds was necessary to make the budget balance. Mr. Erar indicated the majority of the City's revenue comes ITom property taxes. He indicated the City is becoming more dependent on the levy. Special Andaver City Council ."eeting Minutes -August 25,2003 Page 14 Mr. Erar stated the proposed 2004 general fund expenditures were down significantly. Mr. Erar explained staff are exploring ITanchise fees for natural gas and electricity and the use of special assessments for seal coating and overlay activity, along with reallocating road and bridge levies to the general fund to help offset revenue loss. Finance Director Dickinson provided copies of the permit fees and service charges established for the year 2004. Mr. Dickinson discussed the 2004 valuation estimates, a proposed property tax levy analysis, the City's property tax levy from 2000 to 2004, the general fund 2003 fund balance analysis, the general fund 2004 budget gap analysis, a general fund revenue and expense sununary and expenditure budget sununary totals by department for the budget year 2004. He also provided copies of an analysis of the ball field and soccer maintenance costs, along with the parks maintenance spending for 2000 and 1999. Councilmember Trude stated there needs to be public input on some of the proposed fees. She noted a fee was proposed for the use of City Hall and felt people would just stop using it. She also stated there was a wide discrepancy in the quality of the fields and indicated a tiered system should be considered if the City needed to implement the usage fees. Councilmember Trude did not think the City would recover any money on the City Hall rental fee. She asked if the goal was to encourage revenues or discourage use of City Hall. Mr. Erar responded it was to gain revenues. Councilmember Trude asked if it was legal to have a levy for the bridge/road fund. Mr. Dickinson responded the goal was to maintain the bridge/road levy as a constant amount. He noted it could be presented another way and he would reconsider. Councilmember Orttel asked about the 60% increase in tire and medical calls. Mr. Winkel noted the numbers were compared to 1995. He indicated all his numbers are escalating. It was suggested the City charge fees for responding to accident calls. Councilmember Trude noted the City is experiencing more accidents due to the rise in activity. Councilmember Orttel asked if the City could be reimbursed for responding to the medical calls. Mr, Winkel responded he was not sure if the City could be reimbursed but suggested there were charges that could be implemented. Councilmember Orttel indicated the City should be paid for doing anything special. Councilmember Knight asked why an eight-year comparison was being used. Mr. Erar responded the eight-year comparison was used to show the changes over a period of time. Special Andover City CouncillvJeeting Minutes - August 25, 2003 Page 15 Councilmember Knight stated he did not know if the comparison meant much because so much had happened to change the City during that time. Mr. Erar indicated the comparison showed how the amount of growth is affecting the demand for services. Councilmember Knight indicated it was "apples and oranges" when city tax rates were compared, He noted the City does not have its own police force, for example. Councilmember Orttel added the City would look worse if the full cost of a police force were considered. Councilmember Orttel indicated concern about deferring equipment purchases and cutting back some of the infrastructure maintenance, as he felt these cuts are short term waiting until taxes could be raised. He felt the City was deceiving itself and this practice would cause problems over a period of time. Mr. Erar responded in the future it was possible the City would see recommendations to close parks and cut many services currently being provided. He noted questions would be asked regarding true need of and willingness to pay for the services. Andover's problems are more complicated because of its rapid growth, as the City is spending less and less per capita for the same services with the same staff. Mr. Erar continued that various studies showed the City is at a rate below inflation for services and the percentages continued to decrease. The population is continuing to grow, while the tax rate has remained the same or decreased, and that was causing problems. He indicated it was a revelation to view what the City's benchmark properties were paying. He noted, with the exception of one commercial property, residential properties would see a reduction in their State taxes. Councilmember Jacobson asked if the City was hiring any people to run the ice arena at the new Civic Center. Mr. Erar replied staffmg would come from the bond proceeds. Councilmember Jacobson asked about the budget timeline. Mr. Dickinson responded approval of the levy would be sought at the September 2,2003, Council meeting and the maximum level would be sought. The budget would be fmalized at the second Council meeting in December. Councilmember Jacobson indicated he appreciated the work that had been done and wanted to see more detail, such as what was being cut in various categories. Mr. Erar responded Council would receive greater detail. There was discussion regarding various fees. Councilmember Knight stated he was opposed to a ITanchise fee and Councilmember Jacobson agreed. Mayor Gamache asked if the license fees on animals should be raised to cover animal control costs. Councilmember Jacobson noted the City needed to be careful about arbitrarily setting fee levels; however, he felt the proposed fees could be justified. He felt caution should be used when raising fees to generate revenue. Special Andover City Counc. .Ieeting Minutes - August 25, 2003 Page 16 Mayor Gamache felt there was some philosophical disagreement regarding ITanchise fee charges. He noted cable was charged a ITanchise fee and asked why gas and electric were not charged. Councilmember Jacobson responded it was because cable was entertainment and he felt it would constitute a tax on the gas and electric services. Councilmember Orttel stated the flipside is if the City should be allowing the utilities to use City property for nothing. Mr. Erar commented they are profit-making enterprises. Mayor Gamache agreed but indicated the State has tied the City's hands regarding how money could be made. Mr. Erar noted the adoption of the preliminary levy was always subject to change, which Council would be asked to do at the September 2, 2003, meeting. Councilmember Orttel felt it was unfair to expect Council to look at some of the generic information and quickly make a decision. Councilmember Trude stated she would receive many calls about the closing of hockey rinks when the City had the same employees. Public Works Superintendent Stone responded those employees were stretched pretty thin. Mr. Erar commented he would provide more detail of the service reductions. There was discussion regarding the maintenance of the fields and charging fees for the maintenance. Mr. Erar stated Council would only be adopting the preliminary levy on September 2, 2003. He noted Council would not be making decisions regarding the fee issues at that meeting. Motion by Gamache, seconded by Knight, to recommend Council adopt the 2004 preliminary levy at its September 2, 2003, meeting. Further Discussion Councilmember Trude asked if there was money for trails this year. Mr. Dickinson responded the money for trails came from a trail fee, which was separate. He noted those dollars were for a specific use. Mr. Dickinson indicated the Park Commission had discussed improving the matching of their dollars and projects. He noted the Park Commission had made good strides during the past few years and stated some of the incomplete items were a function of the current economy. Motion carried unanimously. Special Andover City Council ..,eeting Minutes - August 25, 2003 Page 17 COMMUNITY CENTER PROJECT UPDATE City Administrator Erar noted there was considerable discussion regarding a proposed business model for the Community Center. He indicated, in support of Council deliberations, staff was directed to obtain additional information through a survey of other communities with similar-type facilities. Mr. Erar provided copies of the survey results. He added staffhad continuing discussions with members of the capital campaign regarding a Business Plan for the Community Center. Mr. Erar provided draft copies of the Business Plan. Mr. Erar noted this information was for Council's discussion and review. Councilmember Orttel indicated he did not feel the City had anything to say about the aquatic part of the Center. Councilmember Trude added Council needed more consistent communication regarding this issue. Councilmember Knight stated he felt the YMCA had misled the City and he thought "they had discovered too much blue sky." He noted there was no question a more complex water park was contemplated. Mr. Erar responded he did not know if the City wanted to fund something that looked like the Dells. Discussion continued regarding costs to the City, participation from the YMCA and the amenities within the swimming area. Mayor Gamache indicated the City is looking for efficient cost management sales and marketing promotion. He added this is a public/private partnership with the YMCA. Councilmember Knight stated there had to be a division somewhere in the mix. He suggested the manager be placed on a commission basis so there was an incentive to sell space and time in the field house and hockey arena. He added he would like to see the manager also selling board and wall space. Mr. Erar provided copies of a Community Center Organizational Chart and Community Center Manager Job Responsibilities. Mr. Erar felt the Community Center Manager needed a business background, not a recreational degree. He suggested candidates with Masters degrees in Business Administration be sought. He also proposed a combination of public and private pay. There was discussion of the job responsibilities of the Community Center Manager. Mr. Erar noted the YMCA would be working hand in hand with the Manager. Councilmember Trude noted the Manager would have considerable pressure and would be divided between the Community Center and the City. Mr. Erar indicated the Community Services Director in this model would not be a Park Services Administrator. Special Andover City Councj, ...eeting Minutes - August 25, 2003 Page 18 He added the person would be a staff liaison to the Park Commission and the Community Center Board. Councilmember Knight stated the person would need to have some athletic background. Mr. Erar stated the City currently has a disjointed situation and this person could bring things together. He added the Manager would have programming and administrative support. Discussion followed regarding how other cities fund their Centers and the responsibilities of the Community Center Manager in other cities. Mr. Erar noted he was not averse to considering a contractual relationship with a management company to run the facility. He added most private management companies were hesitant to manage public facilities with ice arenas or field houses; however, given the low or non-existent margins, highly-charged political environments and a genuine lack of control over operational decisions that could affect the management fIrm's bottom line. Discussion followed regarding items in the Business Plan. Mr. Erar noted the market rates on these places would not generate revenue and the revenue generation came ITom concessions, advertising, etc. Councilmember Orttel asked if Council was allowed to delegate its authority to someone else when its signatures had obtained so much money. Discussion followed regarding establishment of the Board and personnel responsibilities. Mr. Erar noted a management company would not allow the Board to get involved with the personnel; however, the City would be responsible for the liability of the personnel. He added the Board was the creation of the Council and they would be delegating someone above and apart ITom normal City channels and policies, which would cause liability to the City. He noted Council did not have statutory authority and the amount of liability would be very significant. There was further discussion regarding personnel and personnel responsibilities. Mr. Erar stated the City has a human resources person and he felt that person should be ITee to hire the best candidate without a Board introducing politics. Discussion followed regarding the Board. Mr. Erar stated the Board would not be autonomous but would have the ability to adopt policies, which the Council could repeal. He noted that would include fees and everything necessary to run the facility. He indicated the Board would also have the ability to respond to citizen requests. He added they would not necessarily be the Board oflast resort but close to it. He stated the third component would be the annual budget and CIP. Special Andover City Council Jo'Jeeting Minutes - August 25, 2003 Page 19 Mr. Erar stated hiring a management fIrm would be legal. Councilmember Jacobson responded the City would not then need to worry about hiring or dealing with personnel. Councilmember Orttel stated a management fIrm could be harsh to the users, as their only goal was making a profIt. Mr. Erar stated he had nothing against hiring a management firm but he warned a management firm would want considerable autonomy. He did not think it would be wise to hire a company that demanded too much autonomy. Councilmember Orttel added there would need to be concern that decisions would be made that would not be positive for the City. Mayor Gamache suggested Council could pass a Business Plan like the one before them, as it was general in nature and left the option of hiring a private management firm. He added this Plan could then be given as our Business Plan. Mr. Erar noted the Plan distributed to Council was complete and nothing had been added. Councilmember Orttel suggested the Plan be reviewed by business leaders before Council approval. Mr. Erar stated this draft could be approved. Councilmember Trude stated there would be mistrust because city and county govemments are different ITom businesses. She suggested a fund is needed that has monies allocated to different accounts. She felt this would help the mistrust issue. Discussion followed regarding running the Center as a business versus a city entity. Finance Director Dickinson noted staff was talking with the underwriters who were issuing the bonds. He added there are many ways to issue bonds to make this happen and the City would be rated based on its ability to pay the debt. He warned that the one thing that could not be deferred is the debt obligation issued by the City. Councilmember Knight stated the Manager would need to walk a fme line between business goals and serving the cornmunity. Councilmember Jacobson suggested the City identify the top donors and bring them in to discuss their concerns with one or two people in a private meeting. Mr. Erar agreed with Mayor Gamache that Council adopt the draft Plan and then send out the key people to identify issues that are not being addressed. Discussion followed regarding Center activities and programs. Mr. Erar noted Council had already approved much of the document. Councilmember Orttel stated this was close to "going down in flames" if Council was going to pick apart a worthless document. He felt decisions are needed. Special Andaver City CouncÙ·,o1eeting Minutes - August 25, 2003 Page 20 Councilmember Knight asked who would identify the recipients of the Plan. It was decided a decision would be made the following day. Mr. Erar stated this document is a compilation of everything Council had discussed. Councilmember Orttel suggested the document be mailed to ten people for review. Discussion followed. Motion by Orttel, seconded by Knight, to authorize the dispersal of a document shown as the City of Andover-YMCA Business Plan to fifteen (15) business leaders in the City asking for their comments. Further Discussion Councilmember Orttel noted this was not an approval of the document but only authorization to disperse for review. Motion carried unanimously. ADJOURNMENT Motion by Orttel, seconded by Trude, to adjourn the meeting at11 :58 p.m. Motion carried unanimously. Respectfully Submitted, MaJjorie R. Jenkins, Recording Secretary TimeSaver Off Site Secretarial, Inc.