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HomeMy WebLinkAboutWK November 29, 2001 C&\N-ct (l.,6...- unLttuì 11-/I<6lö( CITY of ANDOVER ANDOVER SPECIAL CITY COUNCIL WORKSHOP - NOVEMBER 19, 2001 MINUTES A Special Workshop of the Andover City Council was called to order by Mayor Mike Gamache on November 29,2001,7:03 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Don Jacobson, Mike Knight, Ken Orttel, Julie Trude Councilmembers absent: None Also present: Building Official, Dave Almgren Public Works Superintendent, Frank Stone Fire Chief, Dan Winkel City Engineer, Scott Erickson Finance Director, Jim Dickinson Finance Department, Brian Swanson City Administrator, John Erar 1002 BUDGETS Mr. Erar reviewed the chart outlining the City Fund Summary and what is included in each budget. The governmental funds include the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. Proprietary Funds include the Enterprise Funds and the Internal Service Funds. He also reviewed the pie charts of 2002 versus 2001 total budgeted revenues, noting the difference is because in previous years the debt service funds were never budgeted. The capital fund for the water treatment plant covers a large dollar amount of the projected debt service fund. Mr. Dickinson reviewed the 2002 budget summary of revenues and expenditures by fund types, noting the General Fund is supported by tax dollars and is the same as was discussed in the past. He does have detailed sheets on any of the special revenue funds. In discussing the financing of development projects, Mr. Erar felt the Council may at some point want to discuss that practice. It is an issue of whether or not the City wants to issue public debt for the construction of private infrastructures that are turned over to the City. It is a public policy decision, but most cities basically don't get involved in the issuance of debt on behalf of developers. A lot of the cities allow developers' engineers to design and install improvements while the City continues to inspect and sign off on improvements once they are transferred. There are pros and cons for each approach. Mr. Dickinson also provided a handout regarding the City's property tax levy, comparing certified levies for 2000,2001 and proposed levy with tax aid lost and without tax aid lost in 2002. With the commercial and industrial tax rate compression brought about by the State Legislature this last session, there is a shift from commercial and industrial tax payers to the residential taxpayers. That .~....- ,- - -, ., ,. . Special Andover City Council Meeting Minutes - November 29, 2001 Page 2 (2002 Budgets, Continued) tax compression meant a loss of about $13 million in tax capacity for the City. In addition there was the loss of$489,896 in HACA funds from the State. The property tax rate has gone up ITom 22.S45% to 33.267%. He also reviewed the property tax comparison sheet which showed that most properties will pay fewer taxes even with the tax levy increase. The tax decrease on the higher valued homes is larger than for the lowered valued homes. Commercial property taxes have dropped by as much as SO percent. Mr. Erar and Mr. Dickinson did not believe cutbacks from the State will have much effect on Andover's budget, although the Park and Recreation Commission does rely on grant funds for park improvements. With the changes made by the State Legislature, cities have become more financially independent from the state. There was some discussion on the amount in the Contingency Fund. Mr. Erar stated there is about $40,000 in the Contingency Fund plus a fund balance reserve which can be reapportioned out of the General Fund balance if necessary. Mr. Dickinson stated they went through the process of determining where they will be at the end of the year 200 I and figured the fund balance to reduce the levy dollar amount. The revenues in this budget are conservative estimates. He thought the fund balance will actually exceed what they projected, feeling they are in very good shape for revenues and expenditures. Mr. Erar also stated that unless he hears differently, the intent is to move the proposed 2002 budgets to the regular City Council meeting on December 18 for adoption. The Council agreed. CAPITAL IMPROVEMENTS PLAN Mr. Erar presented the first City of Andover Capital Improvements Plan for the years 2002 - 2006. He stated a lot of credit goes to the City Staff in all departments for the time spent in putting it together. He went through the introduction and the authorization process of the plan, noting the goals and objections of the Plan, and the major categories of improvements and equipment. The equipment section was put together to advise of the equipment and vehicle needs in the budgeting process. The Vehicle Purchasing Committee will evaluate department requests and go through the budgeting process. This is a total planning document, not a policy document. Mr. Erar stated the Park and Recreation Commission has revised their portion of the plan and has presented their proposals for trails, parks and playground equipment. The Commission is also scheduled to present their portion of the plan to the Council at a special meeting in December. Mr. Erar stated the intention is to present the proposals in the plan, and the Council can either accept each proposal, adopt it, leave it as it is or reject it. Approval of the document does not mean approval of the proposed projects or equipment purchases. There is a schedule of activities that the Council would go through with each project. The Council has control over each portion of the project process. The projects are funded only in terms of what is being advised of where revenue sources could be found. At this point in the 2002 budget process, they have done a preliminary analysis that says the proposed 2002 projects can be funded. However, the Council must still go through the steps for each project before it is ultimately approved. . ,- - .. ...- . .--- Special Andover City Council Meeting Minutes - November 29, 2001 Page 3 (Capital Improvements Plan, Continued) Mr. Erar then summarized the authorization schedule as outlined in the Capital Improvements Plan. The intent is that the Plan would be updated, reviewed and approved by Resolution annually in October or November. Some of the projects will use the same process as the 429 assessment procedure. Neighborhood meetings and public hearings will be held when appropriate. In discussing whether the budget drives the CIP or the CIP drives the budget, Mr. Erar felt they are integrated. The budget is part of the integrated framework of decision making. Many of the projects are driven by other funds. The Capital Improvements Plan will be run concurrently with the development of the budget. He suggested reviewing the 2002 projects more thorougWy than those of the remaining years. Much of what is proposed beyond 2002 is for planning purposes and to be used as a planning guide. Only the first year of the five-year cycle is being approved. He also noted that the community center is a separate process that has already been authorized by the Council. If the task force and the Council approve a community center, then it will be put into the CIP. Mr. Erar noted the expenditures for 2002 amount to about $ I 4 million. It is higher the first year because of the water treatment plant. The five-year total is about $48 million, and he reviewed the breakdown of those expenditures by categories. The following projects were then discussed: Replacement of emergency sirens - Mr. Almgren noted 10 of the existing sirens were purchased in 1986, and two more were added in 1988. They have become dated, and the proposal is to replace two sirens a year over the next five years. The proposal is to expend $30,000 per year from the General Fund to replace sirens. Chief Winkel stated at the end of the seven years, they will probably start all over again because of new technology to keep the sirens current. Development projects - Mr. Erickson noted the plan is to develop 125 acres per year. In 2002 it is anticipated the projects of Aztec Estates and Nature's Run will proceed. Roof and building repairs - Chief Winkel reviewed the proposal to seal the blocks on both buildings, which should be done every five years but has never been done on the fire stations. This is maintenance of the buildings as opposed to repairs. Paint interior room and apparatus bays - Chief Winkel stated the funding sources have been identified in the 2002 budget for this project. Mr. Dickinson noted the funds will come from the Capital Project Funds, which is a new levy to create $250,000 in the budget specifically designated as a project fund. Planning process for new fire station - Chief Winkel explained a needs assessment for a new building must be done first, which is proposed for 2002. Mr. Erar stated funds would be proposed in the 2003 budget to start the planning process. Resurface apparatus floor in Station 2 and seal floors in both stations - Chief Winkel explained this is purely maintenance. Special Andover City Council Meeting Minutes - November 29, 2001 Page 4 (Capital Improvements Plan, Continued) Seal floor in Building A - Mr. Stone stated the floor must be resealed every two years. Mr. Erar stated those dollars have been budgeted. Build mezzanine for extra storage in Building A - Mr. Stone noted the need for additional storage space. Building C, 7-garage door replacement - Mr. Stone explained the doors are the original ones. They are proposing to change two doors a year within the next four years with new tracks and overhead motors. Building C, repair and clean ceilings - Mr. Stone discussed the need to clean and repair the ceilings in the building. Some of it can be done internally and some has to be contracted out. Chief Winkel stated all of these jobs will be bid together where possible for cost efficiency. Surface seal all brick structures - Mr. Stone stated all outside brick structures should be sealed each year. They have worked it in a five-year cycle to keep the buildings in good repair. This is a water seal and includes the well houses. Mr. Erar noted these maintenance items are long overdue and have never been done since the buildings were constructed. City Hall parking garage addition - Mr. Almgren reviewed the plan to build a parking garage identical to and directly north of the current one. He noted $25,000 has been budgeted for it since it was originally approved three years ago. The Council suggested holding off on this project until it is known whether or not a community center will be built on this site. Mr. Erar agreed the community center could have an impact on the placement of the garage. He suggested leaving it in the 2002 plan, and as they see things moving forward with the facility, at that point they can make the determination. That would also affect the tennis courts, which are in this plan as well. Purchase 13 acres of land behind water treatment plant - Mr. Erar stated this is being advised for 2003. At this point it is for planning purposes. There is a need for it at some point. Mr. Stone explained the site would be used to house a salt storage area, the recycling center which would be moved to that area away from the parks and ball fields and for an area to add another garage to house all of their equipment in the future. The last discussions with the property owner were 1 Y> years ago. Councilmember Orttel stated the City has the owner's word that it will have first choice on that property at the market price. Land rates are going up faster than inflation, and he wondered how to fund for this purchase. Mr. Dickinson stated if it is in the planning process, they will research how to fund it. New Fire Station #3 - Chief Winkel stated they are looking at this as a 2004 project to fund the building and site preparation. They must still look at existing facilities and needs. As it stands now, there would be no need for additional vehicles with the construction of a new Fire Station #3. The only vehicles being proposed are the replacement of existing ones, unless they look at the need to do medical calls or ifISO ratings sayan additional aerial is needed because of the way the City is going. . T- . .. . _. .. . .. Special Andover City Council Meeting Minutes - November 29, 200i Page S (Capita/improvements Plan, Continued) That is assuming the ISO ratings will be the criteria used. There is concern with the elementary school building in the rural area. That will have to be evaluated. Addition to Fire Station #2 - Chief Winkel stated as they continue to look at their needs, they are running out of space at Station #2 for vehicle storage. They are proposing to look at adding another apparatus bay in 2006. There was some discussion on the financing of the projects. Mr. Erar stated the Council is being asked to approve the planning of all these public improvements and the year it is in. The funding sources will be researched and recommended by Staff, but it becomes a policy issue of using General Obligation bonds or to go out for a referendum. Or the Council may say no and wait. Me. Dickinson did not foresee a problem with the total dollar amount of the bonding proposed for 2002 budgets. Rep/acement of equipment in parks - Mr. Stone noted there have been some changes made by the Park and Recreation Commission at their last meeting. This item is to upgrade equipment to bring them into compliance with ADA standards. There is another $27,000 to rebuild the City Hall tennis court. He suggested that too should be put on hold until more is known regarding a community center complex. If they don't move forward with the tennis court reconstruction, he would recommend it be closed because the surface is a problem. Councilmember Trude also felt the tennis courts are a question of need because the new high school will have quite a few new tennis courts. Rebuilding of hockey rinks at Crooked Lake Schoo/- Mr. Erar stated this is a policy issue. It is a Council decision whether or not to continue to use city dollars on a non-municipal type infrastructure. It is on school property. In talking with Tom Durand of the school district, they have no money. The Park and Recreation Commission chairperson has asked to be placed on the parent/teacher group agenda in an effort to come up with some money. The Commission will recommend closing the facility because they don't want to spend park dedication money on it. This item is proposed for 2003, so it does not have to be dealt with at this time. The Council did not review the projects proposed for parks, trails and playground equipment, as those items will be reviewed with the Park and Recreation Commission at a special meeting scheduled for December 13, 2001. Councilmember Trude stated it appears that a lot of money is going into asphalt to pave the parking lots. That money then cannot be used for playground equipment. She asked ifit is really a problem to have gravel parking lots. Councilmember Orttel noted it is a City standard that was enacted eight years ago requiring blacktopped parking lots with concrete curb and gutter, even in the rural areas. Another point brought up by Staff was that the upgrading of Hawk Ridge Park has been moved toward the bottom of the list. Mr. Dickinson also noted that between park dedication funds and assuming park dedication fees come in from Nature's Run, as well as the $50,000 park levy in the 2002 budget, the funds are available to do the proposed park projects in 2002. They will also make a debt payment of$lS,OOO per year to the Road and Bridge Fund to repay the money borrowed for the , Special Andover City Council Meeting Minutes - November 29, 2001 Page 6 (Capital1mprovements Plan, Continued) tunnel under Bunker Lake Boulevard near the railroad tracks. Mr. Erar also noted that annual maintenance for the parks is budgeted under the Public Works budget for the Parks Department. Councilmember Trude was concerned that the dollars coming in from developments for park dedication are not being spent within those developments themselves, but is being spent on other projects throughout the City. Mr. Dickinson stated he is putting together a list outlining where the dollars came from as well as advising how much land was accepted for park dedication. Senior Center renovation - Mr. Erar noted about $55,000 will be from CDBG funds and about $20,000 from the General Fund. The CDBG funds have already been allocated for this. He felt this item could also be impacted by a new community center. One option would be to move the senior center into the community center, but that might impact the use. Councilmember Trude wondered if the senior center could be used by civic organizations such as the Boy Scouts. She felt the City will get pressured by those organizations to use City rooms because the community education in the schools is going to start charging them to use the school facilities. Discussion was that the senior center was constructed using CDBG funds, and it was not known what restrictions there are on use or how many people use that facility. Mr. Erar stated they can research whether not there are restrictions on the use of the center because it was constructed with CDBG funds and how many people or groups actually use the senior center. In the mean time, he suggested moving forward as proposed in 2002. Mr. Dickinson noted the CDBG funds must be used in 2002 or they will revert back to the county. Monuments - Mr. Erar stated based on his experience, $15,000 per monument plus the landscaping is a very typical cost. He felt the EDA should be able to pick up some of this cost. They are proposing this as a 2003 project. Rum River flood control project - Mr. Erickson explained there are three properties that have ongoing flooding problems. The flood control costs would be on a percentage basis. For 2002, $20,000 has been budgeted with alternatives of grant money from the DNR. It is proposed the property owners would be assessed or they could do their own. There was some discussion on why this should be a City project. It was noted that the flooding does become a City problem, that it has cost the City quite a bit in the past to help with the flood control, that there are arguments the City has a liability because it should not have allowed those buildings to be built where they are, and that the dollars would not come from the General Fund but would be assessed to the affected property owners. Mr. Erar noted discussions with the property owners and public hearings would be held on this item, and the Council can make decisions along the way as to whether or not to continue. Annual seal coating projects - Mr. Erickson noted the proposal is to continue the seal coating program to seal coat streets in one of the seven zones every year. Annual crack sealing projects- Mr. Erickson stated the streets are crack sealed one year prior to the seal coating and follows the same program of crack sealing one of the seven zones every year. , -. . Special Andover City Council Meeting Minutes - November 19, 2001 Page 7 (Capital1mprovements Plan, Continued) Annual street mill and overlay - Mr. Erickson explained all the streets and different neighborhood areas are evaluated. They are proposing street improvements in specific neighborhoods over the next five years. One of the issues will be that of concrete curb and gutter. There will be no assessments, and there will be neighborhood meetings. The Seventh A venue project is separate fÌ'om this. It was to be a 2001 project, so those funds have already been allocated Mr. Dickinson noted those funds are accounted for in the Road and Bridge Fund. Prairie Road Street rehab from Andover Boulevard south to Bunker Lake Boulevard - Mr. Erickson stated the project will be funded with MSA funds plus the bike trail extended. The City has the right of way up to the creek. As a part of the project, they will be meeting with the neighborhood. Councilmember Trude hoped that some people would be willing to dedicate the right of way for the trail. County intersection upgrades and traffic signals - Mr. Erickson noted three projects are proposed in 2002, and the City of Andover will have some contribution in those projects. He anticipated MSA funds will be used. Mr. Dickson stated they have done extensive cash flow projections for the trail fund, park dedication and state aid funds. Mr. Erar stated they will add that documentation to this plan so the Council knows the impacts of the projects on the budgets. There was some Council discussion on the need for a traffic signal at Hanson Boulevard and Andover Boulevard, the frustration that the county has not had the funding for the light and the pros and cons of the City installing the light itself. Water treatment plant - Mr. Dickinson noted the funding for water system improvements that go along with the water treatment plant will come from a combination of trunk fees, system fees and possibly bonding. They will try to use funding available without bonding. Those costs were included in the study done regarding the water treatment plant. Mr. Erar also stated they are confident the waterrate study included all of the factors needed to be considered over the nextten years. They will be reviewing the water rate study annually and bringing in consultants to evaluate it every year to be sure the fees being proposed will meet the debt service. Councilmember Jacobson felt there seems to be a greater need in the Fire Department relating to medical calls, yet nothing is addressed in the CIP regarding that issue. Chief Winkel agreed they are getting more medical calls. They do not transport but are first responders. The equipment needed is covered in their operating budget. The only possibility would be to add a separate vehicle to respond to medical calls. Station 3 will probably be the next need because they will probably see the larger growth rate until they can get a new facility. They use the grass trucks to run medicals out of Stations 2 and 3. Councilmember Jacobson was concerned with the large list of trucks and vehicles proposed for replacement in 2003 rather than spacing them out in the plan, which he felt is more realistic. Mr. Erar explained this planning document gets those items on the table to let them know the needs fÌ'om an operating perspective. They will then look at the budget and departments will be encouraged to Special Andover City Council Meeting Minutes - November 29, 2001 Page 8 (Capital Improvements Plan, Continued) advise their needs. This is more of a planning tool. Typically the Council does not get involved with equipment purchases. Now there is a backlog of items the first year. In terms of the CIP, he expected that will be smoothed out over the years as things get replaced and they have more of a regular turnaround of equipment. Also, some of the items in 2003 were to be replaced in 2004; but as a part of the funding mechanism, they were pushed back. It is coordinated as part of the structure to finance them through equipment certificates. Councilmember Jacobson asked if computer purchases are included in the Capital Improvements Plan. Mr. Erar answered they are in the regular budget. The Council discussed its upcoming meeting with the Park and Recreation Commission and the concerns of the residents over the proposed trail to the Rum River Elementary School. The Council acknowledged a lot of work went into the Capital Improvements Plan. Mr. Erar credited the Staff and noted it will be placed on the December 18 Council agenda for adoption. ANDOVER HIGH SCHOOL Council discussion was on statements heard that the school district will finish the construction of Andover High School but not open it due to lack of funding. The Council supported a proposal by Councilmember Trude for her and the Mayor to attend the December school board meeting to advise them the City of Andover fully expects to see the high school opened as proposed. FIRE DEPARTMENT ISSUES Urban renewal training - Chief Winkel noted the training on the house burn adjacent to the Public Works site has been rescheduled to December 8. Garage fire, 149'h Lane and Crocus - Chief Winkel reported on a garage fire, noting the fire wall between the house and garage clearly saved the house. Motion by Orttel, Seconded by Jacobson, to adjourn. Motion carried unanimously. The meeting adjourned at 10:11 p.m. ReSP~~~ ~ A. Peach, Recording Secretary (ta da Q Q Q) ,