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HomeMy WebLinkAboutWK July 11, 2002 CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N. W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923. WWW.Cl.ANDOVER.MN.US Special City Council Workshop Capital Campaign Planning Study Committee Meeting Thursday, July 11,2002 Andover Council Chambers 1. Call to Order - 7:00 p.m. 2. Consider/Accept Phase I Capital Campaign Report for City Community Center Project 3. Other Business 4. Adjournment - - -.---- . . . ,~, . ~ í-Itp-Ó^ CITY of ANDOVER SPECIAL ANDOVER CITY COUNCIL WORKSHOP MEETING - JULY 11,1002 MINUTES The Special Workshop Meeting of the Andover City Council was called to order by Mayor Mike Gamache, July 11, 2002, 7:06 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Don Jacobson, Mike Knight, Ken Orttel, Julie Trude Councilmember absent: None Also present: City Finance Director, Jim Dickinson City Administrator, John Erar Others APPROVAL OF THE AGENDA MOTlONby Councilmember Trude, Seconded by Councilmember Jacobson, to accept the July 11, 2002 Special Andover City Council Workshop Agenda. Motion carried unanimously. CONSIDER/ACCEPT PHASE I CAPITAL CAMPAIGN REPORT FOR CITY COMMUNITY CENTER PROJECT Mr. Dave Assmus, Saterbak and Associates, stated that the project is about building the cornmunity. He noted they have conducted 55 interviews and thanked Pat Janssen for setting up the interviews and her hard work. He stated that the interviews provided the data to provide the objective. He reviewed the findings and noted the importance of this project. He stated that leaders felt that the community would be very supportive of the project. He noted fundraisers and stated that capital means would be limited and would have to focus on Andover. He also stated that they received a positive attitude regarding the perception of the economic condition present and future, which is very important for a successful campaign. He suggested that the City move forward irnmediately with the Capital Campaign. Mr. Assmus reviewed the resources for the campaign noting that it is believed that donors would give the necessary support for the project. He also reviewed the challenging factors of the proj ect and the recommendations based on what they heard and observed by others in this phase. Councilmember Trude noted the communication and what could be done. Mr. Assmus stated that people do read the newsletter and also to propose identifying as many formal and informal groups and make presentations, making sure that the information shared is consistent and to ask for questions. He stated that this gives the opportunity for people to provide feedback. Mr. Assmus explained pledge payments and recommended strongly that the City does not accept bids until the campaign is complete. He then reviewed the case validation Task Force and the . -. ... , . Special Andover City Council Workshop Meeting Minutes - July 11, 2002 Page 2 campaign process. Mr. Kellog asked if Mr. Assmus was stating that it was his past experience that cornmunities don't move forward on planning architectural drawings until after that one-year period. Mr. Assmus gave examples stating that they need conceptual plans not architectural drawings during that time. The Council briefly discussed funding ifnot being moved laterally and that if the current movement is parallel then the groundwork could be done at this time. Councilmember Jacobson referred to the conclusion section of the report and stated that he would think that a marketing plan should be completed ahead of time. Gift levels and the amount of gifts distributed on an average were discussed. Councilmember Jacobson asked about the cost of an additional study and identifying a contributor base stating that he thought they had already identified a number of contributors. Mr. Assmus explained that they currently have a small list fÌ"om the initial survey; however, they need to expand the list. He stated that they would have a separate task force work on building the list of potential donors. Mr. Assmus explained one aspect of receiving donations as the phone-a-thon. He stated that they receive about a 30% response rate whereas they receive a response rate of2% from mailings. Mr. Assmus noted that volunteers who have been trained and are well versed on the project would drive the phone-a-thon. He stated that they are given a script and are trained to feel comfortable making the call. He added, however, that most of the campaigning is done one-on-one and is personal, which is where the majority of the money comes from. Mr. Erar clarified that Phase One was intended to show the capacity to give. He noted to go beyond that intention would be premature at this time. He added that no one has committed to any dollar amount yet and this was not the purpose nor the intent of the questions that were asked. Councilmember Trude asked ifthe people were aware of the project and if the Council would receive more of the comments in detail from the persons interviewed. Mr. Assmus replied yes that the individual's detailed comments would be submitted to the Council. Discussion and clarification ensued about the City not having the time to handle the campaign and delegating it to the campaign cabinet. Mr. Assmus noted the cabinet would be given a range that they believe is appropriate and would make sure that when the goal is set, the campaign cabinet felt comfortable with the amount. PLANNING STUDY COMMISSION REPORT Mr. Howard noted the community is in favor and talked about what the City was going to provide. He mentioned that they discussed a business plan with what the City would contribute and how it Special Andover City Council Workshop Meeting Minutes - July 11, 2002 Page 3 would be matched. Councilmember Knight noted that there had been a figure given and he believed the City was adamant about not wanting add-ons once the project started. Mr. Howard agreed noting that the main issue was to follow through and stay on task. Discussion took place on selling, advertising, ideas, and having a plan. Mr. Kellogg stated that the intent would be to get a manager who had been in the industry for long time and was able to get the utilization where it is supposed to be, the intent of a business identifier. Mr. Howard added that Planning recommends favorably on passing this item; however, noted that they didn't feel comfortable making any decisions, explaining that they felt this would be the Council's position. Mayor Gamache thanked all of those involved in this project and noted this session has provided some good information to show the City has the capability of raising the money. Councilmember Jacobson indicated he would rather receive the report over accepting, feeling that receiving it would enable future changes at a workshop, if necessary. After discussion it was agreed that the report would be accepted. MOTION by Orttel, Seconded by Gamache, to accept the Phase I Capital Campaign Report for the City Community Center Proj ect and direct Staffto address Items 2 through 7 for a future workshop. Motion carried unanimously. PRESENTATION OF PROjECT COMPLETION SCHEDULE OPTIONS Mayor Gamache briefly summarized the options available being: A) Option 1- Moving forward with a November Referendum. B) Option 2- Moving forward with a Special March Referendum. C) Option 3- September Council Project Authorization. Discussion was held on the lease revenue bonds and the viewed expectance. Mr. Erar stated that the use of bonds is an accepted way of funding these types of projects. The Council reviewed the process of authorizing lease revenue bonds and there being a public hearing included in the process. Discussion was held on an appropriate time line that concluded with Mr. Assmus stating the ideal timeline would be at the end of May which is when large portion offunds would be committed. He added that if the City decides to go with a referendum the materials that are prepared for the Special Andover City Council Workshop Meeting Minutes - July 11, 2002 Page 4 campaign would also support the referendum. Mr. Erar emphasized the risk to the Council if the referendum doesn't pass. Councilmember Jacobson stated he felt this project had some merit; however, he has questions on the financing aspect. He noted that he still firmly believes in the referendum. Discussion was held on a GO bond, lease revenue bonds, projecting out a year, and assuming where the City mayor may not be. City Finance Director Dickinson noted that the City is at the most favorable time for bonds in a number of years. Councilmember Orttel referred to the bonds and asked if there would be enough revenue to pay so that the residents don't end up paying in the future. He noted that this project is revenue driven and this is a legitimate use so he doesn't have a problem with a lease revenue bond in this situation. Discussion was held on the resources of the cost and components of the goal of a self-sufficient operation. Councilmember Trude mentioned the November levy and the school referendum stating that she does not want to compete with the kids and schools. She noted that her conflict with a GO bond would be that it would need a special election. Discussion was held on bonding at different stages of the campaign. Mr. Erar noted that it is important not to confuse the bonds with the project and construction budget. ACTION ITEMS Mr. Erar stated that Staff will schedule a special workshop at the next Council meeting. Mr. Erar noted that the agenda would include discussion on cash flows, decision points, capital campaign, and financing closure. OTHER BUSINESS Mayor Gamache noted that there has been confusion on the ice portion and ice time. Mr. Erar clarified that any dollars the school district cornmitted would not be coming from the new referendum, adding that these dollars had already been approved in a past vote and have nothing to do with the new referendum. It was also noted that hockey dollars would be spent somewhere, whether in Anoka or Andover. Mayor Gamache explained that the Community Center which Andover was working on with Anoka and Ramsey is not going to happen. He stated that the other cities pulled out of the project and Special Andover City Council Workshop Meeting Minutes - July 11, 2002 Page 5 Andover is moving forward for the City's own Cornmunity Center. Mr. Dickenson noted the YMCA representative is present to show the support of the YMCA. Mayor Gamache thanked him for being present. Motioll by Jacobson, Seconded by Orttel, to adjourn. Motion carried unanimously. The meeting adjourned at 9:13 p.m. Respectfully submitted, Rochelle Russo, Recording Secretary - - ----