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HomeMy WebLinkAboutSP October 25, 1995 CITY of ANDOVER Special City Council Meeting - October 25, 1995 Call to Order - 7:00 p.m. 1. New City Hall Discussion 2. Adjournment . . . CITY of ANDOVER SPECIAL CITY COUNCIL MEETING - OCTOBER 25, 1995 MINUTES A Special Meeting of the Andover City Council was called to order by Mayor Jack McKelvey on October 25, 1995, 7:04 p.m., at Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota, to review the findings of the Task Force on a New City Hall. Councilmembers present: Dehn, Jacobson, Knight, Kunza Councilmembers absent: None Also present: City Administrator, Richard Fursman Various Staff members Others AGENDA APPROVAL MOTION by Jacobson, Seconded by Dehn, to approve the Agenda as presented. Motion carried unanimously. INTRODUCTIONS Mr. Fursman made the following introductions: Members of the City Hall Task Force -- Jodi Laliberte, Ken Orttel, Rod Hill, Larry Dalien, Brad Hahn, John Arnold, Lynette Barry, Ann Marie Zielinski, Bud Holst, Terri Swartendruber. BKPR representative, David Kroos. Representati ve of Juran and Moody, Tom Truszinski, Vice President. COMMITTEE REPORTS Mr. Orttel, Chair of the Task Force Committee, reviewed the report presented to the City Council, highlighting the background of issues and activities that took place at the meetings held over a four-month period, the needs assessment done for personnel/administration and the Council chambers/Senior Center, the finance options and the image the buildings should project. The majority recommendation is to construct a 9,000-square-foot facility for the present and future staff (based on 300 square feet per employee) and to upgrade the existing facility for the City Council and senior citizens. The thought was this would meet the needs of the City through the year 2000 and beyond. Since the industry average per employee is 250 square feet, surplus space is being built in. Discussion also was that with additional growth, greater use of technology, flex time and people working at home should be used. They did not hear a need for more facilities for the seniors. The kitchen in the Senior center has been recently upgraded, which should meet their needs for many years to come. Three members of the committee preferred to build an unfinished shell for future council chambers at this time, which could be finished when additional funds are available. Special ci ty Council Meeting Minutes - October 25, 1995 Page 2 (Committee Reports, Continued) Mr. Orttel explained it is their understanding that the funds for the Staff facility are on hand. Using the figure of $90 per square foot for construction, the cost of a Staff facility would be $810,000. The suggestion is to use the approximately $600,000 the ci ty has or will receive from the sale of property to the school and for the extension of the sewer line to the new middle school, the money that becomes available from the sale of the commercial property south of Bunker Lake Boulevard, and the use of TIF funds for site development wherever possible. It may be necessary to issue a temporary bond to pay for the facility until the funds are available; however, any bond should be paid off as soon as possible. The committee felt the upgrades needed for the existing building are minimal, such as repair of the roof and cosmetic changes to blend in with the new building. The new structure would be masonry with a pitched roof, of a design and color to fit in with the neighborhood and not look like an institutional building, single story with no basement. Constructing a basement would mean the need for an elevator. It would not be inhabited by an employee but would only be used for storage. Because of the additional expense, the Committèe felt it would be more cost effective to rent storage space rather than construct the basement. Utilizing modular work stations allows the for flexibility to meet changing needs of the Staff. The new structure and the existing building would only be connected by some covered walkway. Mr. Orttel stated the Task Force appreciates the Council looking for input from the citizens on this matter and recommends that future issues of this magnitude be given to the citizens in a similar format. The Committee is also suggesting that the City determine its future needs for facilities and begin a sinking fund to be able to meet those needs without an impact to the residents. When hiring new employees, figure the facility overhead costs as well so the budget doesn't get behind. Mr. Da1ien was one of the minority who felt the new building should no~ only meet the office space needs, but should be built big enough at this time to accommodate the Council chambers and community center. Construct the entire building in one process, but he would be willing to compromise to build just the shell for the Council chambers and community center at this time. Mr. Holst's initial reaction was most people in private industry have considerably less work space than at City Hall. As a member of the task force, he made concessions in the interest of the community as long as it is something the City can afford. He agreed to new office space as long as it doesn't require major bonding. He and most of his neighbors objected to the proposal made in May to continue the tax rate at the same level once the fire bond expires to pay for the new City Hall. They voted on the fire bond and expect it to come off, not continue for something they never voted on. Councilmember Jacobson asked if the committee would be in favor of a totally new structure if the financing could be arranged without increasing taxes. Mr. Holst stated that scenario was never presented nor discussed. He felt there is a time value issue that must be considered. .,.- . Special City Council Meeting Minutes - October 25, 1995 Page 3 (Committee Reports, Con tinued) Mr. Orttel stated the committee responded to the specific directives given. He personally would be opposed to building anything more than is needed in the foreseeable future. Built into their proposal is 20 percent additional space, which should meet the City's need for ten years. The people living in the City now should not have to pay for any more than that into the future. If the population doubles and the size of the City Hall needs to be doubled, those residents should pay for it. Mr. Hill felt the issues of technology and modular work stations should be addressed to keep the size and costs down. Mr. Dalien stated as one of the minority, he would be in favor of constructing the entire building with office space, Council chambers and community center if th2 funds are available; but they were using the scenario of $600,000 on hand and replacing the fire bond with another bond through the EDA to pay for a new city hall building without raising taxes. He is not interested in increasing taxes after the fire bond expires; but if there is a way, he would rather build the entire building now. Ms. Laliberte stated it would make a difference if all the funds were available now, but that was not one alternative presented for them to discuss. In the scenario of using the money received from the sale of commercial property toward the payment of a new city hall, there was a lot of fear and hesitation as to whether it will really be done that way. Mr. Arnold stated the Council would have to convince him that the building really could be constructed without increasing taxes. The majority on the committee felt the existing building could be used for Council chambers and the senior citizens for a number of years until the community had the appropriate funds to move to the next phase. Ms. Zielinski felt the same way. The real concern is to keep taxes from going up. There will be other issues that require funding, and the City needs to keep all of these things within reason. Also the residents pay more than just city taxes; they look at their entire cost for city, schools and county. She wants to see something done that is fiscally responsible so they can say the new building is bought and paid for. Ms. Swartendruber was of the opinion if the money is available, build the city hall that will meet the needs of those who work in the City. If the process is prolonged and built in bits and pieces, it will end up costing the City more in the long run. Do it right the first time. Mr. Holst didn't think it is responsible to divorce the needs from the financing. People in his neighborhood are as concerned about taxes as they are about the needs in the city hall. He also noted the other needs of schools, parks, etc. that need more money from the residents. Overall the country is leaning toward smaller governments. The City can't do things that would not be allowed in private industry and can't spend more than it takes in without dire consequences. The discussion between Council and task force members continued. Committee members indicated they worked only with the actual costs of " - Special Ci ty Council Meeting Minutes - October 25, 1995 Page 4 (Committee Reports, Con tinued) construction, not with furnishings and equipment. The thought was those items would be financed with equipment bonds. Also, they understood that TIF funds could be used for site development. Though they looked at staff needs to the year 2000, the Committee felt the proposed 9,000 square-foot facility would easily be suitable beyond that time frame with the factor of 20 percent extra space per employee, the use of modular work stations, the use of technology, flex time, and people working from their homes. Also, some departments that can be self- contained can be housed in the existing building if needed. Mayor McKelvey noted TIF funds can be used to construct a community center. Committee members stated they were not aware that there was a pressing need for a community center, nor have they perceived a demand for new senior center facilities. They didn't think the City wants to get into the banquet business. Mr. Truszinski gave a detailed explanation of the law on establishing TIF districts, capturing the excess TIF funds, ways in which those captured funds can be used, and how the costs of an expenditure would be pro-rated between TIF funds on those items where the funds can be used and city funds on those items where TIF funds cannot be used. He also explained how the lease purchase agreement through the EDA can be used to fund the construction of a new facility without the need for a bond referendum, that the bonding through the EDA does not put the City at financial risk, that the debt is not perceived as a liability when the City's financial rating is done, that the repayment of the bond can be made with the excess TIF funds captured when the commercial property is sold, but that the repayment of the bond is an obligation of the City. Mr. Fursman also explained the sources of the approximately $600,000 cash the City would have to put toward a new city hall. There was also some discussion on the committee's concerns with controlling government and government spending, that government has a tendency to fill up extra space equipment. Committee members also pointed out of the four options presented, their recommendation is Phase 1 of Option A. They argued that considering the time value of the monies, Options A and D will end up being the same cost to the residents over 15 years. ARCHITECT'S PRESENTATION Mr. Kroos reviewed four options to consider with the end result of constructing an entirely new facility for offices, Council chambers and senior center and demolishing the existing building. Option A would be done in four phases over 15 years at a total estimated cost of $2,362,500; Option B in three phases over 10 years at an estimated cost of $2,130,500; Option C in two phases over 5 years at an estimated cost of $2,001,500¡ and Option D done all in one phase at an estimated cost of $1,815,500. The estimated costs only covers the construction and site development, not the financing, architectural, and legal fees. Special ci ty Council Meeting Minutes - October 25, 1995 Page 5 (Architect's Presentation, Con tinued) Mr. Kroos noted the problems with locating the new building south of the existing city hall because of the 16-inch water line and the existing garage. He also reviewed other design proposals for consideration. He estimated a cost of $15,000 to refurbish the existing building accordin~ to code; however, it would not have to be brought up to code if the roof is only repaired, not replaced. He also thought it may not be easy to make the existing building aesthetically compatible with a new building. The architectural fees would be higher if done in four phases as proposed in Option A, because anything designed now may not necessarily be desired or useful 15 years from now. Then new drawings would be needed at an additional cost. The Committee expressed some frustration because they had asked for figures of various scenarios similar to what was just presented by Mr. Kroos; however, they were never given any to discuss. Some of what he presented does not come from the Committee's discussions or proposals. Also, they were never told of the problems with locating the administrative building immediately south of the existing city hall. They felt they were receiving new information this evening; but the majority again noted their recommendation is only Phase 1 of Option 1, nothing more until there is a need for new Council chambers and the City can afford it. Mr. Kroos stated the options are a result of Council direction at the October 3, 1995, meeting and are only suggestions for consideration. There was a philosophical discussion on whether or not an entirely new building should be constructed if the cost can be covered with existing funds and excess TIF funds from the sale of commercial property and without raising taxes. Some felt the issue is need, and that the City should not build more than is needed right now, that is office space only. Others disagreed, arguing it will be most cost effective to construct the entire building (offices, Council chambers, Senior center) at one time now. Still others did not wish to spend that much money, whether it is available or not, without a referendum, even though that would mean a tax increase to cover the bond. A few also had some concern with the lease purchase arrangement through the EDA and how that affects the City's financial position and its impact on future councils. It was also commented that there may be other uses for the TIF funds, that a new city hall may not be the best use of those funds. Those in favor of constructing an entirely new building now argued it is more cost effective, do it now while funds are available, that the lease purchase arrangement through the EDA does not jeopardize the City's financial position and it can be done without raising taxes, that it should be done right the first time so there is continuity within the structure and not in a hodge podge of additions over many years, and that the City employees have a right to work in better conditions than they have right now. There was agreement among the Council, however, that new space is needed for the office staff but that not more than 9,000 square feet is necessary. Mr. Kroos noted that a true campud concept wi th separate buildings for the departments as needed is absolutely the most expensive way to construct the facility. " - Special City council Meeting Minutes - October 25, 1995 Page 6 (Archi tect' s Presenta tion, Continued) MOTION by Jacobson, Seconded by Dehn, that the City Council receive the report from the committee with its thanks. Motion carried unanimously. The Council agreed to hold a special meeting on Thursday, November 9, 1995, 7:00 p.m. , to discuss the report further and to consider what course of action to take. MOTION by Dehn, Seconded by Jacobson, to adjourn. Motion carried unanimously. The meeting was adjourned at 10:26 p.m. Respectfully s~þmitted, ~~ -~~-2:L Mar lla A. Peach Recording Secretary .... .-.