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HomeMy WebLinkAboutCC December 6, 1995 CITY of ANDOVER city Council workshop - December 6, 1995 Call to Order - 7:00 pm 1. Externalities Discussion 2. New City Hall Workshop 3 . Adjournment , , ' ... .- CITY of ANDOVER 1685 CROSSTOWN BOULEVARD N.w, . ANDOVER, MINNESOTA 55304. (612) 755-5100 SPECIAL CITY COUNCIL MEETING - DECEMBER 6, 1995 MINUTES A Special Meeting of the Andover City council was called to order by Mayor Jack McKelvey on December 6, 1995, 7:07 p.m., at Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Dehn, Jacobson, Knight, Kunza Councilmembers absent: None Also present: City Administrator, Richard Fursman Various Staff members Others EXTERNALITIES DISCUSSION - MISSION STATEMENT Council and Staff members went through the most recent draft of ~he Mission Statement and made the following comments or changes: Community: Paragraph (a) - Mr. Fursman stated he felt it would be an appropriate time to present a City flag at the time a new City Hall building is opened. Paragraph (c) - rewrite, "The City shall plan and direct development of community facilities for meetings, recreation and other pUblic needs in conjunction with other public entities within the City." Deve 1 opmen t : Paragraph (a) - "Alternate transportation" would mean bicycle, walking, rollerblade, skateboards, etc. This item would include sidewalks within developments and along major roadways as the Council feels is appropriate. Councilmember Jacobson felt a plan for sidewalks must be developed, as they may not necessarily be installed in every development. Paragraph (b) - rewrite, "The City will adopt its own Wetlands/Farmlands Conservation and Marginal Land Use Ordinance to define and protect these properties within the City from inappropriate development." Include the Statement (f) on the past page, "Development within the City shall minimize impacts on farm and agricultural tracts." Councilmembers Dehn and Knight felt that this should be one of the top priorities. Mr. Fursman felt consideration may be given to placing a moratorium on developing these types of properties until a plan is in place. Scott Erickson, City Engineer, felt if there is a moratorium, Staff time must be freed to work on these items. He also noted that the methods to develop PUDs is already in place. Paragraph (c) - As more people are developing in the northern portion of the City, Councilmember Jacobson thought the City should look at whether there is enough zoning to serve those people with convenience centers. Special ci ty Council Meeting Minutes - December 6, 1995 Page 2 (Externalities Discussion - Mission Statement, Con tinued) Paragraph (g) - Mayor McKelvey stated as senior centers are developed, the City will need to work with the Metropolitan Council to provide bus service. Councilmember Dehn strongly felt the City should be looking into providing park-and-ride opportunities for the residents. Paragraph (R) - Delete this paragraph on City-wide storm sewer utility district, as it is the same as Paragraph (i) . Paragraph (i) - The Council felt the development of stormwater districts should include the issue of maintenance as well. It was suggested the Engineering and Finance Departments look at these issues and make a recommendation. Public Safety: No specific comments. Council Leadership Responsibilities: paragraph (e) - rewrite, "The Planning and Zoning Commission, Staff and other Committees, shall review city ordinances prior to December 31, 1996... " ci ty Staff: Paragraph (d) - Include this paragraph. Discussion was on the issue of establishing goals by Department and Staff members, then reporting annually on the progress toward each goal. Councilmember Jacobson felt the Staff should be accountable for reaching the goals that were set and agreed to by both Staff and the Council. Mayor McKelvey had some reservations because goals may not be accomplished due to the Council's change in policy or direction or because the funding is not provided. Councilmember Knight stated if the goals are not assessed, there is no point in setting them to begin with. Councilmember Jacobson wondered if the Council should be judged each year on its performance, though he didn't know what mechanism can be used to do that. Engineering: Include the two paragraphs. Citizen/Public Sector Input: Include the two paragraphs. Staff was asked to rewrite the Mission Statement with the corrections made this evening. The Council recessed at 7:58; reconvened at 8:08 p.m. The Council agreed to go to no later than 10 o'clock this evening. NEW CITY HALL PROPOSAL Mr. Fursman introduced BKRP representative, David Kroos, and the representative of Juran and Moody, Tom Truszinski, vice President. He Special City Council Meeting Minutes - December 6, 1995 Page 3 (New City Hall Proposal, Continued) then addressed the Council on the Staff's recommendation for a new City Hall, comparing this recommendation with the original one proposed in May, 1995, and with the recommendation of the City Hall Task Force. Staff's recommendation is similar to that of the Task Force with the exception of the dollar amount and the Council chambers. The recommendation to the Council is to construct a 9,000 square-foot office building, one story with no basement; upgrade the existing building for Park and Recreation offices, meeting rooms and possibly a youth center, expand the Senior Center and provide rooms for storage of archives; and construct a 3,6000 square-foot Council chambers attached to the new office building, which is less costly than building the chambers in the future or as a separate structure. The proposed cost of $1,827,000 includes the construction and overhead, furnishings, site development, about $50,000 for remodeling of the existing building, and landscaping. Mr. Fursman explained TIF funds can be used for site development and landscaping; however, his financial proposal assumes TIF funds will not be used. He proposed using the $240,000 per year received in dividends from the Piper investment fund to pay for a bond on the building, plus a portion of it be set aside for a contingency fund. The City would be able to payoff the bond using those dividends in 11 years, and the Piper fund balance would still be in place with additional dollars in reserve. The Council also would have the option of reducing the length of the bond by three to six years without directly impacting the budget and the taxpayers. The City would be borrowing money for the construction at 4 percent, and the Piper Fund's rate of return has been 13 1/2 percent. Mr. Truszinski provided financial information on the proposed project, noting the cost of bonding is extremely low at this time, around 4.4 to 5.2 percent. In reviewing the City's debt, he felt there is no justification for the City's Baal rating. He feels Andover deserves an upgrade in its bond rating. He also prepared a cash flow analysis which indicates a bond could be paid off in 11 to 12 years from the dividends of the Piper investment fund. Mr. Fursman stated another option would be to float a bond only long enough to accumulate enough cash to pay it off from the sale of properties in the new industrial park. He also reviewed some of the options available to the City if the dividends from the Piper investment dropped below what is needed for the bond payment. Many options are available that would not directly impact the General Fund or tax levy. If TIF funds are used to pay for site improvements, the bond could be reduced down to 9 years. If the monies being used as a reserve are used to payoff the bond, it could be retired in 6 years. And there are still monies that can be used from the sale of the industrial property. While another option is to use the $600,000 in cash from the sale of property to the school district and their portion of the utility assessments to make the bond payments, he would not recommend it. He would propose that money be used for the Public Works facility. Special City Council Meeting Minutes - December 6, 1995 Page 4 (New City Hall Proposal, Continued) Mr. Fursman also suggested the Council consider these questions to determine whether or not a new Council chambers should be constructed at this time: 1} Does the image of Council chambers mean anything to the community? 2} Does it matter if the office area is separate from the Council chambers? 3 ) Should this existing building be allowed to serve as the community center for various functions? 4} Is the existing space unacceptable for an indefinite period of time? If the answers are no, then new Council chambers should not be constructed with the project. It is cheaper to do the project without the new Council chambers only if the intent is to never build it. Mr. Truszinski explained the Piper fund consists of a series of short- term and long-term investments, with the average maturity of approximately 18 years. When one security matures, another one is purchased, plus new ones are being purchased with the dividends. Ken Orttel. 2772 Bunker Lake Boulevard NW - thought there was a settlement on the Piper account. Mr. Fursman stated the City did receive a settlement. He guessed $160,000 will be forthcoming to help recoup some of the losses. Mr. Orttel - wondered if some of the money in that fund is for sewer prepayments. Whose money is that? Unless it is from arbitrage, he felt it should not be used but belongs to the sewer and water funds. That money is owned by the public, paid in by individuals; and committed funds should not be used for the City Hall. Mr. Fursman did not know where the funds came from, but the idea has been to look at the fund as a long-term investment. Mr. Orttel - stated the Task Force spend a lot of time going over the costs and came up with $90 per square foot for the construction of the entire building. No partitions were recommended because the furniture was to be modular. He did not know how the cost increased to $150 per square foot tonight. The cost is $1 million more than the Task Force discussed. Mr. Fursman and Mr. Kroos provided the details for the various components of the project. The project contingency and office furniture were added, as well as the professional costs for legal, architectural, engineering, etc. Also, the original thought was to use the existing building; however, that will no longer be possible. That increased the site development costs. Tonight's budget is more complete than what the Task Force worked with. Mr. Orttel - expressed frustration over the inability of the Task Force to get these more complete figures during their meetings, as they did ask for them several times. Again, he was concerned with the increase from $90 to $150 per square foot. The recommendation of the Task Force was to go to the public for a vote if the cost is over $1 million. Bud Holst. 4276 165th Avenue - was a member of the Task Force. They asked for the numbers many, many times, but never received them. To get from $800,000 at $90 per square foot to $1,800,000 is a big jump. It is Special City Council Meeting Minutes - December 6, 1995 Page 5 (New Ci ty Hall Proposal, Continued) wrong of the Council to spend that kind of money without going to the public. If the taxpayers say no, maybe the City must get more efficient and figure out how to fit into this building. This is spending money that will encumber future generations. It shouldn't cost that much. Use the existing furniture instead of getting everything new. He didn't think it is acceptable to simply say it will cost more than anyone thought. He assumed those Task Force members listening to this on cable will feel they got shot in the foot. Where did the money come from that went into the Piper fund? That money may have strings already attached to it. He's very disappointed to hear it will cost $1 million more than the proposal they brought to the Council. Mr. Fursman again compared the Staff recommendation with that of the Task Force, noting only two major differences of constructing the Council chambers now and the cost. The intent would be to not have to build again once this is completed, that this will meet the City's needs well beyond the year 2000. Flex time is difficult to provide in a service industry; however, the Staff agrees with the Task Force recommendation of increased use of technology and modular work stations. Though the Task Force report does not mention it, Mr. Fursman believed it was their intent to go for a referendum if more than $1 million was to be spent on the project. Mayor McKelvey didn't feel the figures had changed that much. The major addition is the Council chambers plus those items that can be paid from the TIF funds. Larrv Dalien - stated the Task Force understood some costs could be covered with TIF funds, but they never had firm figures to work ~ith. Dave O'Toole. 13429 Jonquil - was in favor of a City Hall, community center and Council chambers when it was first proposed. He is still in favor of a community center, because the needs of the people are not being met. If a community center is not going to be constructed, he felt this proposal is a viable compromise. This building could be used as a teen or community center. With the growing community, there is a need to help the volunteers; and the Parks Department needs to be brought into that area. He'd like to see a swimming pool, but apparently that won't happen. Also, there is a need for adult programs. Whatever funding is deemed appropriate, he felt it should be done. Even the concession building across the street will cost between $150,000 to $200,000, and that is a no-frills building with all volunteer labor and a lot of donated material. He didn't know how the City Hall could be built for only $810,000. Mike Malonev. 13868 Crane - stated he and his wife moved to Andover because they found quality housing and a City with a real vision for the future. One of the items talked about earlier in the meeting is to promote a sense of community identity and pride. People don't get that feeling when driving by this facility. It is more than redoing logos; it is the facilities and how the Staff is treated. The City Hall is a reflection of the values of the community. It certainly makes a statement and is a focal point for setting the tone for other developments in the community. It is difficult to expect the private Special City Council Meeting Minutes - December 6, 1995 Page 6 (New ci ty Hall Proposal, Continued) sector to build quality facilities when the community isn't doing that. A lot is expected from the Staff, and it is more important to look long- term, not at doing things cheaply. The Council was elected as leaders who hopefully have a vision of what the City will be 10, 15, 20 years from now. This building as served its purpose. The plan outlined by Staff is a good one; and corners shouldn't be cut that will be regretted in five years. City Halls are difficult to get built via referendums. The Council should be showing leadership and constructing a building the community can be proud of. He felt remodeling this facility is penny wise and pound foolish. Do it right the first time; and the time to do it is now. Dave Syplinski. 3945 169th Lane - has been a part of this community since 1979. One of the important things done in the City has been to ask the citizens what they want. This is no different. He felt this should be presented to the citizens to make a decision just as it has been done in the past. Mr. Fursman stated the Staff is one of the best groups of people who do an incredible job. As pointed out in the Truth in Taxation hearing, each full-time Staff member in Andover serves 454 residents; whereas the average of cities of similar populations is each full-time Staff member serving 247 residents. Mayor McKelvey agreed, as he spends a lot of time at City Hall and knows the work load carried out by all Staff members. MOTION by Mayor McKelvey, Seconded by Dehn, that it is 10 o'clock and to continue the meeting for 15 more minutes. Motion carried unanimously. Winslow Holasek. 1159 Andover Boulevard - goes back to when the meetings were held at Crooked Lake School. He thought the City can be proud that it had the foresight to buy this land and build this building. He thought it cost $135,000 for this building and was paid for with monies accumulated over the years. Obviously more space is needed; the question is how much. He has spent a lot of time at City Hall and at other cities and businesses. He stated this is one of the best Staffs for being helpful. The City can be proud of the people working here. They are doing a good job. Councilmember Jacobson stated in the beginning he had said if it could be done without raising taxes, he would be in favor. The key would be to use monies from other sources so taxes are not increased. He agreed the City doesn't need to be cheap, but neither should it be extravagant. Everyone agrees that 9,000 square feet of office space is needed and that there should be continued use of the existing building in some way. He felt what Staff is recommending is reasonable. Using the proposed $1.8 million, which includes the Council chambers, apply $267,000 in TIF funds for the infrastructure, apply the $600,000 in cash from the land sale, etc., apply the $125,000 in settlement for the Piper fund, it leaves $850,000 to be financed by bonds. That is slightly more than the amount being discussed by the Task Force. Also, it isn't much more than what the Council normally bonds for capital equipment, which is done without a vote of the people. To hold an election for $800,000 is nonsensical. If the people don't like what the Council does, they have Special ci ty Council Meeting Minutes - December 6, 1995 Page 7 (New Ci ty Hall Proposal, Con tinued) the option of voting the Council out of office. He felt the Council, as elected representatives, has the responsibility of making the final decision. He would be in favor of proceeding on the project and to bond for about $850,000. Mayor McKelvey also believed the proj ect should be done, though he thought the $600,000 cash should be reserved for the Public Works facility, not put toward the City Hall. He talks to the public daily, and he estimated the residents are ten to one in favor of going ahead with the project if it can be done without raising taxes. Councilmember Knight felt this is a unique situation because the City facilities sit between two schools. He'd like to see the City explore the possibility of working with the school district to share public facilities, particularly recreation and a recreational director. One of the goals has been to share costs with other municipalities or public entities. He agreed office space is needed. He is not ready to vote until that is explored further. That should be part of the overall plan. Mayor McKelvey stated he has already talked with those at the school district, and they want to meet with the City on some of the programs, sharing of fields, and cooperation in other programs. The school district will not set up a community center because it has not worked in the past. He didn't feel a community center with a pool, etc., is needed, especially since there will be a pool at the new middle school. Councilmember Knight did not understand the source of money for the Piper fund. Jean McGann, City Finance Director, stated the funds are not encumbered monies and are not tied to debt service payments for sewer and water bonds. She understood it to be a long-term investment, not to be utilized for debt service. Councilmember Dehn agreed additional office space is needed, but she agreed with the Task Force regarding the extra cost. She also believed that within ten years there will be a need to add onto the City Hall again, and that is the time that the Council chambers should be built. Councilmember Kunza also agreed there is a need for new facilities but did not want to go against the recommendations of the Task Force. He didn't understand how the City could spend $1.8 million and not raise taxes. Councilmember Jacobson stated those funds have nothing to do with the General Fund and tax revenues; they are from other sources. MOTION by Jacobson, Seconded by McKelvey, to authorize Staff to produce the necessary Resolution for the next Council meeting to enact Staff's proposal. DISCUSSION: Because several Councilmembers preferred to have more discussion, it was agreed to table the item to the next Council meeting on December 19, 1995. Mayor McKelvey and Councilmember Jacobson withdrew the Second and the Motion. MOTION by Jacobson, Seconded by Dehn, to adjourn. Motion carried unanimously. The me. eting .é\.Qjo. urned at ï: 20 p. m. \-", I /' Res~ec;tfu¡ly,Sub~Ü:t,ed, « ~¡?" Y j Marcella A. Peach, 'Record~ng Sebretary---