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HomeMy WebLinkAboutWK June 24, 2008 C I T Y o F 0 NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US City Council Workshop Tuesday, June 24, 2008 Conference Rooms A & B 1. Call to Order - 6:00 p.m. 2. Discussion with Open Space Advisory Commission 3. Community Tour 6:45 p.m. 4. 2009-2013 CIP Development Progress Report 5. 2009 Budget Development Progress Report 0 6. Comprehensive Plan Update Discussion 7. Award Quote/07-37A1Metropolitan Mosquito Control- Supplemental (Information distributed at meeting) 8. Other Business 9. Adjourn 0 @ 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers ~ CC: Jim Dickinson, City Administrator . Will Neumeister, Community Development Director It/J.-. FROM: Courtney Bednarz, City Plann~ SUBJECT: Discussion With Open Space Advisory Commission DATE: June 24, 2008 INTRODUCTION The Open Space Advisory Commission would like to discuss with the Council the corridor concept and a potential open house meeting. DISCUSSION Corridors The Commission would like an opportunity to discuss the purpose of establishing corridors with the Council. The intent is to document areas of remaining natural resources in the city. The intent is not to create an absolute blueprint of land to be purchased. There would be no 0 additional regulation of land within corridors. They simply would be an indicator that some form of natural feature exists or is connected through a property. This information would be used to determine where the largest undeveloped properties with natural features exist. These property owners would be contacted to determine if they would be interested in working with the city to preserve the natural features of their property. Ifproperty owners within these areas are not interested the list will shorten. By determining who is interested in working with the city, preservation of natural features based on a citywide concept can begin. It is also important to note that corridors playa critical role in obtaining matching grant funds. Presently the only DNR Metro Greenways Corridors in the city exist along the Rum River and in a developed area north of Bunker Hills Park. The city can ask the DNR to update the Metro Greenways Corridors based on those identified by the city to better reflect the remaining natural areas ip the city and to increase the likelihood that matching grants will be obtained. Use of Corridors Once established, the corridors can be used as follows: 1. To guide site selection for discussion of preservation with property owners 2. To be considered when development is proposed 3. To add context to decision making in the location of future trails and parks 4. To define areas where information and technical assistance may be useful to property 0 owners. Where opportunities for acquisition do not exist, the city should focus on providing information and coordinating technical assistance for those property owners that are interested. 5. To update DNR Metro Greenways corridors to increase the chance for matching funds. 0 ODen House One of the best ways to begin building a relationship with property owners is to hold an open house. First, it is an opportunity to see who takes the time to show up, or call, or stop in at other times once the open house has been advertised. Second, it is a chance to share information. Property owners can ask questions and begin to determine if they are interested in preservation of their property. The open house can be staffed by the Commission as well as partners from conservation related organizations like the DNR, Trust for Public land and Minnesota Land Trust. In this way the best information available can be given to property owners. The Commission is seeking authorization from the Council to hold an open house, most likely in September. This will allow the field work to be completed and a list of property owners to be generated for an invitation. The September/October newsletter, city web site, QCTV and the Anoka Union can also be used to get the word out. Outside EXDertise Sarah Strommen, Conservation Director for the Minnesota Land Trust and Ramsey Councilmember, attended the May 14th Open Space Advisory Commission. She was unable to attend tonight's meeting. However, much of the information she shared on her experiences 0 within a conservation organization and as a councilmember are reflected in the attached minutes from that meeting. ACTION REQUESTED The Council is asked to discuss with the Commission the possibility of formal adoption of the corridors and authorization for an open house. Attachments Minutes from May 14th Commission Meeting Recommended Corridors With Natural Areas 0 o~ 3 4 5 6 REGULAR ANDOVER OPEN SPACE ADVISORY COMMISSION MEETING 7 llMY 14,2008 8 MINUTES 9 10 11 The Regular Meeting of the Andover Open Space Advisory Commission was called to order by 12 Chairman Deric Deuschle, May 14,2008, 7:00 p.m., at the Andover City Hall, 1685 Crosstown 13 Boulevard NW, Andover, Minnesota. 14 15 Commissioners present: Jim Olson, Jody Keppers, Bruce Perry, Winslow Holasek and Kim 16 Kovich 17 Commissioners absent: Gretchen Sabel 18 Also present: City Planner, Courtney Bednarz 19 Others 20 21 22 APPROVAL OF MINUTES O;~ April 9, 2008 25 26 Motion by Perry, seconded by Keppers to approve the minutes as presented. Motion carried on a 27 4-ayes, O-nays, I-present, 2 absent (Holasek, Sabel) vote. 28 29 30 UPDATE ON COUNCIL DISCUSSION OF CORRIDORS 31 32 Mr. Bednarz indicated that the Council reviewed the corridors but did not want to adopt them 33 officially. There was some concern about the impact the corridors would have on property owners 34 and developers. 35 36 Commissioner Keppers stated that he understood how that could be a concern without having 37 more defmed purposes for the corridors. 38 39 Chairman Deuschle believed that the corridors would need to be adopted locally to allow the city 40 to work with the DNR to amend the Metro Greenways corridors to those identified by the city 41 and to allow access to this source of funding. 42 43 Mr. Bednarz stated that this was his understanding as well. 0; Commissioner Kovich stated that without formal acceptance of the corridors they would not be 46 useful and would not be considered for funding through the Metro Greenways program. 47 48 Commissioner Keppers stated that the purposes of the corridors discussed by the Commission 0 Regular Open Space Advisory Commission Meeting Minutes - May 14, 2008 Page 2 1 need to be shared publicly to alleviate misconceptions. The intent is not a land grab, it is to 2 identify the location of environmental assets that remain in the community. With this 3 information, opportunities for both property owners and developers can be made without getting 4 into an adversarial situation. 5 6 Commissioner Olson stated that the corridors are large areas and preservation, where agreed to 7 by a property owner, may only be a small portion ofthat. 8 9 Mr. Bednarz indicated that it is his intent to bring development proposals within the corridors to 10 the Open Space Commission so that their comments can be incorporated into the development 11 reVIew process. 12 13 Commissioner Kovich asked if the greenways in Andover that have already been established by 14 the DNR have been an impediment to development. Mr. Bednarz indicated that they had not and 15 said that where corridors exist in developed areas there may be opportunities to help interested 16 property owners receive technical assistance or even funding from state sources that is only 17 available to property owners. 18 019 Commissioner Keppers stated that this is an example of how the corridors are helpful. 20 21 Commissioner Perry asked what forms technical assistance may take. Mr. Bednarz stated that a 22 trained professional may come out and help a property owner determine what resources exist, 23 what condition they are in and help put together a management plan to maintain and improve 24 them. 25 26 Chairman Deuschle suggested a work session with the Council to discuss the intent of the 27 corridors to alleviate the Council's concerns. The Commission agreed that a work session was 28 needed to make sure the Commission and Council were on the same page. 29 30 31 32 DISCUSSION OF REVISED 2008 WORK PROGRAM 33 34 Chairman Deuschle asked the Commission for comments related to the work program. 35 36 Mr. Bednarz indicated that he spoke with Sharon Pfeifer of the DNR regarding the Conservation 37 Assistance grant and she indicated that they anticipate a decision will be made in July. 38 39 Commissioner Olson asked the line item regarding training staff and preparing for field work 040 entailed. Mr. Bednarz stated that there would need to be some work to put the land cover codes 41 into the handheld GPS unit and staff training to learn how to input information in the field. 42 43 Commissioner Kovich asked if there was more information from the Anoka County Parks 44 Department about the floodplain area along the Rum River across from rum River Central 0 Regular Open Space Advisory Commission Meeting Minutes - May 14, 2008 Page 3 1 Regional Park. Mr. Bednarz stated that he had not heard back from Mr. V ondelinde. He said 2 that they may use an emergency fund through the Metropolitan Council if the buildable area of 3 this site in Oak Grove is proposed for development. 4 5 Commissioner Kovich stated if it is all floodplain in Andover, there may not be any changes even 6 if development occurs. Mr. Bednarz agreed and added that in his discussion with Mr. 7 V ondelinde they expressed interest in providing public access and perhaps a bridge over the river 8 into the regional park. In this case either an easement or acquisition would be necessary. 9 10 The Commission discussed the focus on spending referendum money on upland areas. Mr. 11 Bednarz stated that if another funding source could be identified to pay for lowland areas a 12 partnership with the county and others may help get something accomplished. 13 14 Chairman Deuschle stated that LCCMR has a program to fund wetland banking and though this 15 may be an approach to take in low lying areas. Mr. Bednarz stated that LCCMR is also seeking 16 input on the statewide plan and this may be an opportunity to influence funding sources for the 17 future. He stated that as an individual city there may be limited influence, but a coordinated 18 effort with the watershed and conservation districts may make more headway. 019 20 Commissioner Perry indicated that the Lower Rum Watershed Management Organization has 21 very limited funding and looks at regulating the use of wetlands and floodplain and not 22 acquisition. He remembered that the Cedar Creek Corridor study was led by the county and 23 conservation district and wondered how that effort was funded. Mr. Bednarz stated he would 24 fmd out and report back to the Commission. 25 26 27 DISCUSSION OF CONSERVATION TOOLS WITH GUEST SPEAKER: 28 . SARAH STROMMEN, CONSERVATION DIRECTOR FOR THE MINNESOTA 29 LAND TRUST 30 31 Sarah Strommen described the Minnesota Land Trust as having four main objectives: 32 1. Providing community assistance in determining areas that merit preservation and working 33 with communities to achieve their goals. 34 2. Providing information on the conservation tools that are available, especially the various 35 applications of conservation easements. 36 3. Assisting property owners in understanding how conservation can help them achieve their 37 long term goals, including tax implications and tailoring conservation assistance to their 38 individual needs. 39 4. Providing monitoring and land management of easements that the Minnesota land trust o:~ holds. o - 42 Ms. Strommen stated that the corridor approach the city is working on is a good idea. Having 43 focus areas is important, but refining potential preservation areas down to individual sites can 44 limit options and be counter productive to a community wide approach: She indicated that as a 0 Regular Open Space Advisory Commission Meeting Minutes - May 14, 2008 Page 4 1 board member of the Metro Greenways program corridors are a determining factor for this source 2 of funding. She added that communities do not exclusively choose the most pristine natural 3 areas and look to preserve sites important to community identity, such as a farm field or sites 4 with other cultural or social characteristics that are popular in the community. Corridors are 5 important to logically connect these areas. 6 7 Ms. Strommen described her experience as a councilmember in Ramsey where the city prepared 8 a resource inventory map and completed field work to defme wetland functions and values to 9 refme work previously done by the Anoka Conservation District. She stated that this helped 10 identify corridors. She stated that the natural resource inventory is part of the city's 11 comprehensive plan update and will be considered for inclusion in the plan as that process is 12 completed. 13 14 Mr. Bednarz asked if cities could work with the DNR to change the Metro Greenways corridors 15 based on their more detailed work. 16 17 Ms. Strommen responded that this is possible, however the DNR may favor a county wide update 18 to make sure that any changes would be beneficial to the regional corridors. She added that 019 Hennepin County is a good example. The Metro Greenways corridors in Hennepin County are 20 much more fmely detailed because the county initiated an effort to update the Metro Greenways 21 corridors. She advised that it is important not to have corridors too fmely detailed as they will 22 begin to lose regional significance. 23 24 Commissioner Perry asked ifhe has 20 acres in a corridor as a property owner why he would be 25 interested in preservation. 26 27 Ms. Strommen stated that property owners may become interested for a variety of reasons. They 28 may want their land to be preserved and may be looking for a suitable method to do that. They 29 may be looking to sell the land for the value that it has and move on. They may be interested in 30 the tax benefits of donating an easement and/or be looking to lower the value of the land to avoid 31 the estate tax. 32 33 Commissioner Perry asked if a property owner became interested how this would work. 34 Ms. Strommen stated that there are a variety of methods that can be used depending upon the 35 wishes of the property owner and the goals of the conservation organization. They include: 36 37 Conservation easements - A balance can be reached between the rights that the property owner 38 wants to retain and the resources that the conservation organization wants to protect. These 39 easements are recorded at the county and provide permanent protection so it is important to keep 040 in mind that rights can't be given back except through judicial action once they have been 41 granted in an easement. 42 0 Regular Open Space Advisory Commission Meeting Minutes - May 14, 2008 Page 5 1 Development review process - A development can be designed to preserve both the development 2 rights of the owner and the natural features it contains. The natural resource inventory and 3 development proposal may be improved through conservation design, transfer of development 4 rights, or planned unit development. 5 6 Private land management - A property owner may not be interested in public ownership or 7 access or the conservation organization may not be interested due to the size or location of a site. 8 There are a variety of programs, technical assistance and funding available for property owners 9 on their own. 10 11 Commissioner Keppers asked what type of technical assistance would be available. Ms. 12 Strommen stated that a botanist may visit the site and help a property owner understand the types 13 of species that exist and may help prepare a management plan. This can take many forms 14 depending on the circumstances including planting, removal of invasive species, shoreline 15 restoration, etc. They may also work with volunteers by providing seed or plant material and 16 having them do the planting. 17 18 Ms. Strommen stressed the need for open communication. People may want to participate but 019 don't know how. Relationships are important to build trust and to get people talking in their 20 neighborhoods to reassure people that working with the city is to their benefit. Sometimes it is 21 important for property owners to hear from someone other than the city for them to think that this 22 may be a good idea for them. 23 24 Commissioner Perry asked how to encourage people to get involved. 25 26 Ms. Strommen said there are a variety of ways but that in her experience an open house is one of 27 the best. By inviting people perhaps with parcels 10 acres or larger within the corridors, an 28 opportunity to share information about what the city is doing and why and where these 29 opportunities exist and how they can help a property owner. Preparation is important to ensure 30 the message is received as it is intended. Other partners are available to help moderate the 31 meeting. It may helpful to have the DNR, Great River Greening, Minnesota Land Trust, Trust 32 for Public Land, and other local organizations attend to be able to answer property owners 33 questions about preservation options. Getting the word out ahead of the meeting is important. 34 Using the newsletter, cable and other resources to get people talking to build momentum and to 35 get people to the open house. She stated that in one case they had Thrivent Financial on hand to 36 help advise property owners from their perspective. 37 38 Commissioner Keppers stated he liked the idea of having an open house. It would be an 39 opportunity to let people know what is happening, to explain the corridors as a way of 040 highlighting what features are out there and worth preserving. 41 42 Commissioner Olson expressed concern with the time frame and thought that if the Commission 43 isn't careful they will run out of time for the next grant cycle. 44 0 Regular Open Space Advisory Commission Meeting Minutes - May 14, 2008 Page 6 1 Chairman Deuschle wondered if property owners within the corridors should be contacted before 2 a determination is made on grant funding in July. 3 4 Mr. Bednarz indicated that funding for the field work would come from the grant application. 5 The Commission discussed what would be done if the grant was not successful. 6 7 Chairman Deuschle asked when does it make sense for purchase and when is an easement a 8 better option. Ms. Strommen indicated that this depends on what you are trying to achieve. If 9 public access or intensive plant management is needed outright purchase may be appropriate. If 10 a property owner wishes to continue owning the property, or even subdivide the property in the 11 future an easement may make more sense to address areas that will be preserved and those that 12 will be developed. Easements are also less expensive because payment is made for the rights that 13 are purchased and not for the entire property. 14 15 Mr. Bednarz asked how the value of an easement is determined. Ms. Strommen stated that an 16 appraisal is done and the value of the property before and after the easement is compared. The 17 difference is the value of the easement. Negotiation beyond this may occur. She recommended 18 using an appraiser that is experienced in valuing easements, especially if the property owners 019 intent is to use the transaction to reduce their taxes. 20 21 Chairman Deuschle asked how the cost of an easement compares with purchase of a property. 22 Ms. Strommen indicated an estimate would be about 60% of the value of the property. This may 23 vary with the largest factors being the ability to divide or build on the property. 24 25 Commissioner Kovich stated that public access is very important to the city's effort. 26 27 Commissioner Deuschle agreed stating that without public access the benefit may be only for one 28 individual. Even with an easement some type of access should be included. 29 30 Commissioner Keppers stated that it may be difficult to monitor easements if they are all unique. 31 32 Ms. Strommen agreed and stated that they set aside a stewardship and enforcement fund for each 33 easement using a formula based on the details of the easement and the amount of monitoring that 34 will be necessary. This work includes answering property owners and potential buyer's questions 35 about the easement as well as site visits and record keeping. She said they also train and certify 36 volunteers to compete some of this work but also have an attorney to advise tern on legal matters. 37 38 Commissioner Kovich asked if cities or other organizations hold easements. He added that it 39 would be better for others to hold an easement on property that is owned by the city to protect 040 from situations that could arise in the future. 141 42 Ms. Strommen stated that some cities hold easements and others choose not to. In some cases 43 the land trust co-holds easements with cities and shares monitoring and enforcement. 44 0 Regular Open Space Advisory Commission Meeting Minutes - May 14, 2008 Page 7 1 Commissioner Kovich if Andover holds any easements and if any funding was set aside to 2 monitor them. 3 4 Mr. Bednarz stated he is aware of two easements for tree preservation and that no money was set 5 aside for monitoring. He asked if the land trust holds an easement for a city if the city is asked to 6 contribute toward the stewardship and enforcement fund. 7 8 Ms. Strommen said that was correct. She added that this is also done by developers or even 9 property owners that donate an easement which is sometimes difficult. This funding is important 10 to ensure that the intent of the easement is maintained in the long term. 11 12 Ms. Strommen stated that the process can be complicated and can take a long time to make real 13 accomplishments. She encouraged putting as much information out as possible on the options 14 that are available to property owners. Property owners can be turned offby a letter or a map if 15 that's all they see. From a planning perspective it is helpful to start with a wide variety of 16 potential sites and then to filter down based on what exists and who is interested. 17 18 Commissioner Holasek asked what happens to an easement if a property is forfeited. Ms. 019 Strommen replied that the legal advice she has received indicates that the easement would 20 survive because if it has been recorded with the deed of the property. 21 22 Chairman Deuschle summarized that the Commission felt the corridors were important and 23 needed to be more formally accepted to allow access to grants. He added that the open house 24 was a good idea and the city should look at doing this with other partners as was suggested. He 25 asked if an item could be placed on a Council worksession to allow this to be discussed. 26 27 The Commission agreed that a work session with the Council to discuss corridors and an open 28 house was a good idea. 29 30 The Commission discussed items for next month's agenda 31 32 Motion by Perry, seconded by Kovich to adjourn. Motion carried on a 6-ayes, O-nays, I-absent 33 (Sabel) vote. The meeting adjourned at 9:40 p.m. 34 35 36 Respectfully submitted, 37 38 Courtney Bednarz 0 .-. tn C) C ,~ .- Q. 0 :J "C ~ 0 -i: +-' ... ~ co L. en o tn ~-g C) ~ o~ 0 ~ - 0 en "C a::s ::;, ~::s ~ "C 0 "C 0 In u.. "C -- ... CO L- "C C a::l CD c c ...ea 0 "L: a::s c CI) "C t) L- ::;, C .c a::s :;::; Cl)LL c 0 0 U en Q) ... ::;, "C t) a::l CO Co "C ::;, S 0- 0 0) .... "C 0 c..1! a::l "C '0) "C Co ca 0 c Q) "C a.. 0 a::s en () L- ::s a::s c Co C 0 ::;, CO 0) "C... 0) CO u.. "C .c ..c: c CO ~ E 0 ca "C 0 .c E :;::; - c c ::;, +-' eaz a::s 0) u.. ~ "C L- 0) L- a <( E en S c a::s a::s ..c: () 0) - U).c <( +-' .c en co I en ~ 0 <C en a::s "C as:: "C 0 :2 ~ :;::; 0 ::;, .c +-' 0) ~3: "'C () S L- +-' L- ~ ::;, 0) 0 w - 0 (J) 0 ..c: 0) 0) 0) co +-' S S S S <C r:: en 0::: <( Z u.. l! u.. en I ....I ~ (I) 0 10 I :J IIIII ~ "C 0') 0 ~ ::s 0 .... (I) 0 ca ... 0 en -I 0 Z 0 0 _,_,_"n.\ ..---- .:..--- 0 0 0 Q) 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Council Members CC: Jim Dickinson, City Administrator FROM: Will Neumeister, Director of Community Developmentw4-- SUBJECT: Community Tour (2008) DATE: June 24, 2008 INTRODUCTION Based on City Council and staff input on what should be seen, we are planning a bus tour of the City and will stop at the 17 separate locations (see attached map). At the stops we 0 will ask for discussion and input on various community projects and image issues. This is not a rigid discussion, and is meant to be free ranging to gather opinions and spark future discussions. DISCUSSION This tour is an opportunity to see how some of the projects are moving along and get a feel for what could have been changed or needs to be changed to make ~he outcomes what the Council desires. ACTION REQUESTED Council is requested to go on a two hour bus tour and provide staff feedback on what they see and provide direction on what may need to be changed to accomplish the Council's goals. Respectfully Sub~ Will N eunieister Attachment 0 Tour Route Map S'\NDbVE~ Bus Tour Map Incorporated 1974 1. Country Oaks West 10. Crosstown Redevelopment Area 2. Potential Open Space Preservation Area 11. Northglen Mill and Overlay 3. Potential Open Space Preservation Area 12. Fox Cove Sketch Plan 4. Mill rs Woods 13. Woodland Creek Golf Course d. Sophi South 14. Potential Open Space Preservation Area . Hickory M adows 15. Hughes Indu trial Park 7. Railroad Cros ing 16. Tulip Stre t Con truction 8. Andov r Station North 17. Cardinal Ridge/PutnamlWoodland Cro ing 9. Andov r Station South 18. Rural R rv (j;) C I T Y o F 0 NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: 2009-2013 Capital Improvement Plan (CIP) Update DATE: June 24, 2008 INTRODUCTION In early April, Administration/Finance conducted a 2009-2013 CIP kick-off meeting with Department Heads with discussion centering on the attached 2009-2013 CIP development calendar and the need of other committees (Vehicle Purchasing & Facility Management Committees) and commissions (parks & Community Center) to start their work. That work is well underway and staff would like to provide a progress report. The attached calendar outlines the 2009-2013 CIP preparation activities and the tentative deadlines for each item. 0 DISCUSSION Budget Guidelines: The following are City Council's 2009 Budget Development guidelines established by the City Council on April 1, 2008 and used by City Staff while preparing the proposed CIP: 1) A commitment to a City Tax Capacity Rate to meet the needs of the City and positioning the City for long-term competitiveness through the use of sustainable revenue sources and operational efficiencies. 2) Continued development of a fmancial plan to appropriately structure the expenditure of bond proceeds generated from the successful 2006 Open Space Referendum. 3) A fiscal goal that works toward establishing the General Fund balance for working capital at no less than 35% of planned 2009 General Fund expenditures. 4) A commitment to limit the 2009 debt levy to no more than 25% of the gross tax levy and a commitment to a detailed city debt analysis to take advantage of alternative financing consistent with the City's adopted Debt Policy. 5) A comprehensive review of the condition of capital equipment to ensure that the most cost- 0 effective replacement schedule is followed. Equipment will be replaced on the basis of a cost benefit analysis rather than a year based replacement schedule. 6) A team approach that encourages strategic planning to meet immediate and long-term operational, staffing, infrastructure and facility needs. 0 7) A management philosophy that actively supports the implementation of Council policies and goals, and recognizes the need to be responsive to changing community conditions, concerns and demands in a cost effective manner. Current Citv of Andover CaDital ImDrovement Policy: The following is the City of Andover adopted Capital Improvement Policy, which is part of the City of Andover Financial Policies: CITY OF ANDOVER FINANCIAL POLICIES C. Capital Improvement Policy 1. A Capital Improvements Program (CIP) will be developed for a period of five years. As resources are available, the most current year of the CIP will be incorporated into the current year operating budget as the Capital Improvements Budget (Cffi). The CIP will be reviewed 0 and updated annually. Years two through five are for planning purposes only. 2. The City will maintain its physical assets in a manner, adequate to protect the City's capital investment. and to minimize future maintenance and replacement costs. The City will provide for maintenance and replacement from current revenues where possible. 3. To be considered in the Capital Improvements Program a project must have an estimated cost of at least $5,000 in one of the calendar years of the project. Projects may not be combined to meet the minimum standard unless they are dependent upon each other. Items that are operating expense (such as maintenance agreements, personal computer software upgrades, etc.) will not be considered within the CIP. 5. Capital projects, which duplicate other public and/or private service, will not be considered. 6. The City will identify the estimated costs and potential funding sources for each capital project prior to inclusion in the CIP. The operating costs to maintain capital projects shall be considered prior to the decision to undertake the capital projects. 7. Capital projects and/or capital asset purchases will receive a higher priority if they meet a majority of the following criteria: 0 A. Mandatory project B. Maintenance project (approved replacement schedules) C. Improve efficiency D. Provide a new service G) E. Policy area project F. Broad extent of usage G. Length of expected useful life 0 H. Positive effect on operation and maintenance costs I. Availability of county/state/federal grants J. Elimination of hazards (improves public safety) K. Prior commitments L. Replacement due to disaster or loss 9. The CIP is to be presented by the Finance Director annually to the City Council for approval. Any substantive change to the CIP after approval must be approved by the City Council. Overall- CIP Development Update: Currently, staff is focusing on equipment items for the CIP (listing attached). Staff has also updated various projects identified in the CIP. Throughout the summer it is anticipated that a significant amount of time will be spend on evaluating water/sewer infrastructure, transportation improvements, building maintenance, equipment and park and recreation needs. Each of these items will be supported by detailed cash flow analysis of funding sources and presented to the Council for a detailed review at future workshops. At this time. Staff is seeking the Councils first blush review of the proiects and equipment proposed and additional Council direction on whether or not the Council's priorities are being 0 met with the current 2009-2013 CIP work product. Staff will then take those comments into consideration before the presentation of a "Draft 2009-2013 CIP" in September. 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U e.. .c:: > a. ~ '> U - ~ U N ...: t: U '> Q) (3 Q) (3 M Ul Q) t: C> ~ Q) Q) City of Andover, MN Capital Plan 0 2009 thru 2013 PROJECTS BY DEPARTMENT Department Project# Priority 2009 2010 2011 2012 2013 Total (Central Eqnipment I Mobile Lifts 10:48800-01 1 35,000 35,000 Replacement - Hotsy Pressure Washer 11-48800-01 3 7,000 7,000 Replacement - Service Truck 13-48800-01 2 30,000 30,000 Replacement - Floor Sweeper 13-48800-02 3 35,000 35,000 Central Equipment Total 35,000 7,000 65,000 107,000 (Community Center I Storage Building 10-44000-01 2 15,000 15,000 Battery Pack Replacement - Zamboni 11-44000-01 2 7,000 7,000 Community Center Total 15,000 7,000 22,000 IElections I Voting Equipment 10-41310-01 1 110,000 110,000 0 Elections Total 110,000 110,000 IEngineering I New Development Projects 09-41600-01 1 248,000 300,000 300,000 300,000 300,000 1,448,000 Pedestrian Trail Maintenance 09-41600-02 1 53,000 54,000 55,000 56,000 57,000 275,000 Replacement - Blazer #11 10-41600-01 2 30,000 30,000 Engineering Total 301,000 384,000 355,000 356,000 357,000 1,753,000 IFacility Management I Building A - Seal Floor 09-41900-01 1 7,000 8,000 9,000 24,000 Annual Parking Lot Maintenance 09-41900-02 1 22,000 23,000 24,000 25,000 26,000 120,000 Carpet Replacement 10-41900-01 2 10,000 10,000 20,000 Roof Replacements 11-41900-01 1 300,000 300,000 Surface Seal all Brick Structures 12-41900-01 1 75,000 75,000 Addition to Storage Building & Vehicle Main!. Shop 12-41900-02 1 2,200,000 2,200,000 Fire St. #2 Addition with additional land purchase 12-41900-03 2 885,000 885,000 Salt Storage Building 12-41900-04 1 400,000 400,000 Recycling Building & Fence 12-41900-05 1 250,000 250,000 Attached Storage Building 12-41900-06 1 250,000 250,000 Relocate Fuel Station wi Canopy 12-41900-07 2 280,000 280,000 Land Purchase 13-41900-01 1 1,500,000 1,500,000 Pedestrian Tunnel Under Crosstown Blvd, 13-41900-02 1 450,000 450,000 0 Facility Management Total 29,000 33,000 332,000 4,375,000 1,985,000 6,754,000 Friday, June 20, 2008 @) Department Project# Priority 2009 2010 2011 2012 2013 Total Fire eplacement - Fire Engine #11 09-42200-01 1 225,000 225,000 450,000 Replacement - Fire Chiefs Vehicle 10-42200-01 2 45,000 45,000 Replacement - Rescue #11 10-42200-02 2 50,000 50,000 Replacement - Fire Marshall Vehicle 10-42200-03 2 40,000 40,000 Replacement - Ladder Truck #11 11-42200-01 1 950,000 950,000 Replacement - Grass #31 11-42200-02 2 45,000 45,000 Waterllce rescue boat 11-42200-03 1 20,000 20,000 Replacement - Utility #4 12-42200-01 2 32,000 32,000 Replacement - Utility #5 12-42200-02 2 32,000 32,000 Replacement - Grass #21 12-42200-03 2 45,000 45,000 Replacement - Tanker #11 13-42200-01 2 340,000 340,000 Fire Total 225,000 360,000 1,015,000 109,000 340,000 2,049,000 IPark & Rec - Operations I ReplacelRepair Play Structures - Various Parks 09-45000-01 1 45,000 45,000 45,000 45,000 45,000 225,000 Trail Machine wi Snow Removal Equipment 09-45000-02 1 100,000 100,000 Replacement - T oro Groundsmaster, #559 10-45000-01 1 23,000 23,000 Replacement - Large Capacity Lawnmower #580 10-45000-02 1 112,000 112,000 Zero turn mower 10-45000-03 1 8,500 8,500 Replacement - Trailer, T-554 11-45000-01 2 9,000 9,000 Replacement - One Ton Truck wi Plow, #599 11-45000-02 2 65,000 65,000 Replacement - One Ton Truck wi Plow #503 13-45000-01 2 65,000 65,000 Replacement - One Ton Crew Cab Pickup #502 13-45000-02 1 45,000 45,000 0 Park & Rec - Operations Total 145,000 188,500 119,000 45,000 155,000 652,500 IPark & Rec - Projects I Annual Miscellaneous Projects 09-45001-01 1 25,000 25,000 25,000 25,000 25,000 125,000 Skate Board Park 10-45001-01 1 175,000 175,000 Sophies South Park 11-45001-01 1 75,000 75,000 Andover Lions Park 13-45001-01 1 85,000 85,000 Park & Rec - Projects Total 25,000 200,000 100,000 25,000 110,000 460,000 IPlanning & Zoning I Replacement - Ford Taurus #15 10-41500-01 2 25,000 25,000 Planning & Zoning Total 25,000 25,000 ISanitary Sewer I Replacement - One Ton Truck wi Plow #90 10-48200-01 1 65,000 65,000 Crosstown Blvd Trunk Sewer Line 11-48200-01 1 400,000 400,000 Rural Reserve Trunk Sanitary Sewer 11-48200-02 1 2,250,000 1,250,000 3,500,000 New JeWac Truck 11-48200-03 1 357,000 357,000 Yellow Pine Lift Station 12-48200-01 1 650,000 650,000 Sanitary Sewer Total 65,000 3,007,000 1,900,000 4,972,000 torm Sewer onn Sewer Improvements 09-48300-01 1 52,000 53,000 54,000 55,000 56,000 270,000 Trailer Mounted Grout Plant 09-48300-02 1 30,000 30,000 Friday, June 20, 2008 C9 Department Project# Priority 2009 2010 2011 2012 2013 Total Replacement - Elgin Street Sweeper #169 10-48300-01 1 150,000 150,000 0 Storm Sewer Total 82,000 203,000 54,000 55,000 56,000 450,000 IStreets / Highways I Annual Street Seal Coat Project 09-43100-01 1 240,000 245,000 250,000 255,000 260,000 1,250,000 Annual Street Crack Seal Project 09-43100-02 1 85,000 85,000 85,000 85,000 85,000 425,000 Annual Street Mill and Overlay 09-43100-03 1 850,000 1,125,000 1,100,000 1,250,000 1,250,000 5,575,000 Annual Pavement Markings 09-43100-04 1 21,000 22,000 23,000 24,000 25,000 115,000 Annual Curb Replacement 09-43100-05 1 42,000 43,000 44,000 45,000 46,000 220,000 Municipal State Aid Routes I New & Reconstruct 09-43100-06 1 458,000 250,000 1,548,000 739,000 2,995,000 Replacement - Water Tanker #163 10-43100-01 2 100,000 100,000 Asphalt Paving Machine 10-43100-02 1 90,000 90,000 Replacement - Dump Truck wi Snow Removal #197 10-43100-03 1 200,000 200,000 Retroreflectometer 10-43100-04 1 15,000 15,000 Intersection Upgrades 11-43100-01 1 275,000 275,000 Replacement - Dump Truck wi Snow Removal #198 12-43100-01 1 150,000 150,000 Replacement - One Ton Truck wi Plow #132 12-43100-02 1 65,000 65,000 Streets / Highways Total 1,696,000 2,175,000 1,777,000 3,422,000 2,405,000 11,475,000 IWater I Rehabilitation of Wells 09-48100-01 1 50,000 50,000 55,000 60,000 65,000 280,000 WTP Reclaim Tank Addition 09-48100-03 1 930,000 930,000 Construct Clearwell at WTP 11-48100-01 1 2,665,900 2,665,900 Replacement - One Ton Truck wi Plow #1 05 11-48100-02 1 65,000 65,000 oonstruct Well #10 12-48100-01 1 181,000 181,000 ater Main along South Coon Creek Drive 12-48100-02 1 500,000 500,000 Demolish 500,000 Gallon Water Tower 12-48100-03 1 190,000 190,000 Construct Water Treament Plant #2 13-48100-01 1 8,000,000 8,000,000 Water Total 980,000 50,000 2,785,900 931,000 8,065,000 12,811,900 GRAND TOTAL 3,483,000 3,843,500 9,558,900 11,218,000 13,538,000 41,641,400 0 Friday, June 20,2008 0) City of Andover, MN Capital Plan 0 2009 thru 2013 FUNDING SOURCE SUMMARY Source 2009 2010 2011 2012 2013 Total Assessments 281,200 281,250 525,000 1,510,000 349,450 2,946,900 Building Fund 1,500,000 1,500,000 Capital Equipment Reserve 300,000 300,000 Capital Projects Levy 110,000 22,500 132,500 Central Equipment Fund 35,000 7,000 65,000 107,000 Community Center Operations 15,000 7,000 32,000 54,000 Construction Seal Coat Fund 25,000 25,000 25,000 25,000 25,000 125,000 Equipment Bond 325,000 948,500 1,089,000 324,000 450,000 3,136,500 G.O. Bond 4,265,000 450,000 4,715,000 General Fund 74,000 78,000 77,000 80,000 80,000 389,000 Municipal State Aid Funds 389,300 250,000 275,000 1,350,500 702,050 2,966,850 Park Improvement Funds 25,000 200,000 100,000 25,000 110,000 460,000 R & B - Crack Seal & Seal Coat 300,000 305,000 310,000 315,000 320,000 1,550,000 R & B - Overlays 637,500 843,750 825,000 937,500 937,500 4,181,250 OR & B - Pedestrian Trail 53,000 54,000 55,000 56,000 57,000 275,000 R & B - Reserve 63,000 80,000 67,000 69,000 71,000 350,000 Sanitary Sewer Fund 9,000 65,000 160,000 234,000 Sewer Revenue Bonds 2,000,000 250,000 2,250,000 Sewer Trunk Fund 124,000 150,000 710,000 800,000 150,000 1,934,000 Storm Sewer Fund 73,000 203,000 91,000 55,000 56,000 478,000 Water Fund 50,000 50,000 120,000 80,500 65,000 365,500 Water Revenue Bonds 930,000 2,665,900 8,000,000 11,595,900 Water Trunk Fund 124,000 150,000 150,000 1,021,000 150,000 1,595,000 GRAND TOTAL 3,483,000 3,843,500 9,558,900 11,218,000 13,538,000 41,641,400 0 Friday, June 20, 2008 @) City of Andover, MN Capital Plan 0 2009 thru 2013 PROJECTS & FUNDING SOURCES BY DEPARTMENT Department Project# Priority 2009 2010 2011 2012 2013 Total ICentral Equipment I Mobile Lifts 1048800-01 1 35,000 35,000 Central Equipmllllt Fund 35,000 35,000 Replacement - Hotsy Pressure Washer 1148800-01 3 7,000 7,000 Central Equipmllllt Fund 7,000 7,000 Replacement - Service Truck 1348800-01 2 30,000 30,000 Central Equipment Fund 30,000 30,000 Replacement - Floor Sweeper 1348800-02 3 35,000 35,000 Central Equipment Fund 35,000 35,000 Central Equipment Total 35,000 7,000 65,000 107,000 ICommunity Center I Storage Building 10-44000-01 2 15,000 15,000 Community Center Operations 15,000 15,000 c;Jattery Pack Replacement - Zamboni 11-44000-01 2 7,000 7,000 Community Center Operations 7,000 7,000 Community Center Total 15,000 7,000 22,000 IElections ~ Voting Equipment 1041310-01 1 110,000 110,000 Capital Pf(Jjects Levy 110,000 110,000 Elections Total 110,000 110,000 IEngineering I New Development Projects 0941600-01 1 248,000 300,000 300,000 300,000 300,000 1,448,000 Sewer Trunk Fund 124,000 150,000 150,000 150,000 150,000 724,000 Wafer Trunk Fund 124,000 150,000 150,000 150,000 150,000 724,000 Pedestrian Trail Maintenance 0941600-02 1 53,000 54,000 55,000 56,000 57,000 275,000 R & B - Pedestrian Trail 53,000 54,000 55,000 56,000 57,000 275,000 Replacement - Blazer #11 1041600-01 2 30,000 30,000 Equipment Bond 30,000 30,000 Engineering Total 301,000 384,000 355,000 356,000 357,000 1,753,000 IFacility Management ~ Building A - Seal Floor 0941900-01 1 7,000 8,000 9,000 24,000 Genfll'ill Fund 7,000 8,000 9,000 24,000 Annual Parking Lot Maintenance 09-41900-02 1 22,000 23,000 24,000 25,000 26,000 120,000 o General Fund 22,000 23,000 24,000 25,000 26,000 120,000 Friday, June 20, 2008 CY Department Project# Priority 2009 2010 2011 2012 2013 Total Carpet Replacement 1041900-01 2 10,000 10,000 20,000 Gellflllll Fund 10,000 10,000 20,000 OOOf Replacements 1141900-01 1 300,000 300,000 Capital Equipment Res81V8 300,000 300,000 Surface Seal all Brick Structures 1241900-01 1 75,000 75,000 Capilal Projects Levy 22,500 22,500 Community Center Operations 32,000 32,000 Waler Fund 20,500 20,500 Addition to Storage Building & Vehicle Mainl Shop 1241900-02 1 2,200,00 2,200,000 G.O. Bond 2,200,000 2,200,000 Fire Sl #2 Addition with additional land purchase 1241900-03 2 885,000 885,000 G.O. Bond 885,000 885,000 Salt Storage Building 1241900-04 1 400,000 400,000 G.O. Bond 400,000 400,000 Recycling Building & Fence 1241900-05 1 250,000 250,000 G.O. Bond 250,000 250,000 Attached Storage Building 1241900-06 1 250,000 250,000 G.O. Bond 250,000 250,000 Relocate Fuel Station wI Canopy 1241900-07 2 280,000 280,000 G.O. Bond 280,000 280,000 Land Purchase 1341900-01 1 1,500,000 1,500,000 Building Fund 1,500,000 1,500,000 Pedestrian Tunnel Under Crosstown Blvd. 1341900-02 1 450,000 450,000 G.O. Bond 450,000 450,000 Facility Management Total 29,000 33,000 332,000 4,375,00 1,985,000 6,754,000 dFire ~ Replacement - Fire Engine #11 0942200-01 1 225,000 225,000 450,000 Equipment Bond 225,000 225,000 450,000 Replacemenl- Fire Chiefs Vehicle 1042200-01 2 45,000 45,000 Equipment Bond 45,000 45,000 Replacement - Rescue #11 1042200-02 2 50,000 50,000 Equipment Bond 50,000 50,000 Replacement - Fire Marshall Vehicle 1042200-03 2 40,000 40,000 Equipment Bond 40,000 40,000 Replacemenl- ladder Truck #11 1142200-01 1 950,000 950,000 Equipment Bond 950,000 950,000 Replacement - Grass #31 1142200-02 2 45,000 45,000 Equipment Bond . 45,000 45,000 Water/lce rescue boat 1142200-03 1 20,000 20,000 Equipment Bond 20,000 20,000 Replacement - Utility #4 1242200-01 2 32,000 32,000 Equipment Bond 32,000 32,000 Replacement - Utility #5 1242200-02 2 32,000 32,000 Equipment Bond 32,000 32,000 Replacement - Grass #21 1242200-03 2 45,000 45,000 Equipment Bond 45,000 45,000 Replacement - Tanker #11 1342200-01 2 340,000 340,000 Equipment Bond 340,000 340,000 Fire Total 225,OOlI 360,000 1,015,000 109,000 340,000 2,049,000 0 Friday, June 20, 2008 @ Department Project# Priority 2009 2010 2011 2012 2013 Total IPark & Rec - Operations I gePlaceJRepair Play Structures - Various Parks 0945000-01 1 45,000 45,000 45,000 45,000 45,000 225,000 General Fund 45,000 45,000 45,000 45,000 45,000 225,000 Trail Machine wI Snow Removal Equipment 0945000-02 1 100,000 100,000 Equipment Bond 100,000 100,000 Replacement - Toro Groundsmaster, #559 10-45000-01 1 23,000 23,000 Equipment Bond 23,000 23,000 Replacement - Large Capacity Lawnmower #580 10-45000-02 1 112,000 112,000 Equipment Bond 112,000 112,000 Zero turn mower 10-45000-03 1 8,500 8,500 Equipment Bond 11,500 8,500 Replacement - Trailer, T-554 1145000-01 2 9,000 9,000 Equipment Bond 9,000 9,000 Replacement - One Ton Truck wI Plow, #599 11-45000-02 2 65,000 65,000 Equipment Bond 65,000 65,000 Replacement - One Ton Truck wI Plow #503 13-45000-01 2 65,000 65,000 Equipment Bond 65,000 65,000 Replacement': One Ton Crew Cab Pickup #502 13-45000-02 1 45,000 45,000 Equipment Bond 45,000 45,000 Pam & Rec - Opemtions Total 145,000 188,500 119,000 45,000 155,000 652,500 !Park & Rec - Projects I Annual Miscellaneous Projects 09-45001-01 1 25,000 25,000 25,000 25,000 25,000 125,000 Park Improvement Funds 25,000 25,000 25,000 25,000 25,000 125,000 Skate Board ParK 10-45001-01 1 175,000 175,000 Q Park Improvement Funds 175,000 175,000 ophies South ParK 11-45001-01 1 75,000 75,000 Park Improvement Funds 75,000 75,000 Andover Lions ParK 13-45001-01 1 85,000 85,000 Park Improvement Funds 85,000 85,000 Pm & Rec - Projects Total 25,000 200,000 100,000 25,000 110,000 460,000 IPlanning & Zoning I Replacement - Ford Taurus #15 10-41500-01 2 25,000 25,000 Equipment Bond 25,000 25,000 Planning & Zoning Total 25,000 25,000 ISanitary Sewer I Replacement - One Ton Truck wI Plow #90 10-48200-01 1 65,000 65,000 Sanitary SeW8l" Fund 65,000 65,000 Crosstown Blvd Trunk Sewer Line 11-48200-01 1 400,000 400,000 SeW8l" Tronk Fund 400,000 400,000 Rural Reserve Trunk Sanitary Sewer 11-48200-02 1 2,250,000 1,250,000 3,500,000 Assessments 250,000 1,000,000 1,250,000 Sewer Revenue Bonds 2,000,000 250,000 2,250,000 New JetlVac Truck 11-48200-03 1 357,000 357,000 Sanitary Sewer Fund 160,000 160,000 SeW8l" Tronk Fund 160,000 160,000 StomJ Sewer Fund 37,000 37,000 Oellow Pine Lift Station 12-48200-01 1 650,000 650,000 Friday, June 20, 2008 G Department Project# Priority 2009 2010 2011 2012 2013 Total Sewer Trunk Fund 650,000 650,000 0 Sanitary Sewer Total 65,000 3,007,000 1,900,000 4,972,000 I IStorm Sewer Stonn Sewer Improvements 09-48300-01 1 52,000 53,000 54,000 55,000 . 56,000 270,000 Storm Sewer Fund 52,000 53,000 54,000 55,000 56,000 270,000 Trailer Mounted Grout Plant 09-48300-02 1 30,000 30,000 Sanitary Sewer Fund 9,000 9,000 Storm Sewer Fund 21,000 21,000 Replacement - Elgin Street SWeeper #169 10-48300-01 1 150,000 150,000 Storm Sewer Fund 150,000 150,000 Stonn Sewer Total 82,000 203,000 54,000 55,000 56,000 450,000 IStreets I Highways , Annual Street Seal Coat Project 09-43100-01 1 240,000 245,000 250,000 255,000 260,000 1,250,000 COIIStruction Seal coat Fund 2D,000 20,000 20,000 20,000 2D,000 100,000 R & e - Craclr Seal & Seal Coat 220,001/ 225,000 230,000 235,000 240,000 1,150,000 Annual Street Crack Seal Project 09-43100-02 1 85,000 85,000 85,000 85,000 85,000 425,000 COIIStruction Seal coat Fund 5,001/ 5,000 5,001/ 5,001/ 5,000 25,000 R & B - CracIr Seal & Seal coat 80,001/ 80,000 80,000 80,001/ 80,000 400,000 Annual Street Mill and Overlay 09-43100-03 1 850,000 1,125,000 1,100,000 1,250,000 1,250,000 5,575,000 Assessments 212,500 281,250 275,000 312,500 312,500 1,393,750 R & B . Overlays 637,500 843,750 825,000 937,500 937,500 4, 181,250 Annual Pavement Markings 09-43100-04 1 21,000 22,000 23,000 24,000 25,000 115,000 R & B - RsslIMI 21,000 22,000 23,000 24,000 25,001/ 115,000 annual Curb Replacement 09-43100-05 1 42,000 43,000 44,000 45,000 46,000 220,000 R & B - RsslIMI 42,000 43,000 44,001/ 45,000 46,000 220,000 Municipal State Aid Routes I New & Reconstruct 09-43100-06 1 458,000 250,000 1,548,000 739,000 2,995,000 Assessments 68,700 197,500 36,950 303,150 Municipal Slate Aid Funds 389,300 250,001/ 1,350,500 702,050 2,691,850 Replacement - Water Tanker #163 10-43100-01 2 100,000 100,000 Equipment Bond 100,000 100,000 Asphalt Paving Machine 10-43100-02 1 90,000 90,000 Equipment Bond 90,000 90,000 Replacement - Dump Truck wi Snow Removal #197 10-43100-03 1 200,000 200,000 Equipment Bond 200,000 200,000 Retroreflectometer 10-43100-04 1 15,000 15,000 R & B - RsslIMI 15,000 15,000 Intersection Upgrades 11-43100-01 1 275,000 275,000 Municipal Slate Aid Funds 275,000 275,000 Replacement - Dump Truck wi Snow Removal #198 12-43100-01 1 150,000 150,000 Equipment Bond 150,000 150,000 Replacement - One Ton Truck wi Plow #132 12-43100-02 1 65,000 65,000 Equipment Bond 65,000 65,000 S1reets I Highways Total 1,696,000 2,175,000 1,m,000 3,422,000 2,405,000 11,475,000 IWater I Rehabilitation of Wells 09-48100-01 1 50,000 50,000 55,000 60,000 65,000 280,000 WatBr Fund 50,000 50,000 55,000 68,001/ 65,000 280,000 aw Reclaim Tank Addition 09-48100-03 1 930,000 930,000 . Water Revenue Bonds 930,000 930,000 Friday, June 20, 2008 0 Department Project# Priority 2009 2010 2011 2012 2013 Total Construct Clearwell at WTP 11-48100-01 1 2,665,900 2,665,900 Water Revenue Bonds 2,665,900 2,665,900 OePlacement - One Ton Truck wI Plow #105 11-48100-02 1 65,000 65,000 Water Fund 65,000 65,000 Construct Well #10 12-48100-01 1 181,000 181,000 Wa. Trunk Fund 181,000 181,000 Water Main along South Coon Creek Drive 12-48100-02 1 500,000 500,000 Wa. Trunk Fund 500,000 500,000 Demolish 500,000 Gallon Water Tower 12-48100-03 1 190,000 190,000 We. Trunk Fund 190,000 190,000 Construct Water T reament Plant #2 13-48100-01 1 8,000,000 8,000,000 Wa. Revenue Bonds 8,000,000 8,000,000 Water Total 980,000 50,000 2,785,900 931,000 8,065,000 12,811,900 GRAND TOTAL 3,483,000 3,843,500 9,558,900 11,218,000 13,538,000 41,641,400 0 0 . Friday, June 20, 2008 @ lQ.J 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: 2009 Budget Progress Report DATE June 24, 2008 INTRODUCTION City Departments are well underway to compiling their proposed 2009 Annual Operating Budgets; the deadline for each department's submission to Finance/Administration is July 3, 2008. The attached budget calendar outlines the 2009 Budget preparation activities and the tentative deadlines for each item. Underlined items will be reviewed at the meeting. DISCUSSION 0 Budget Guidelines: The following are City Council's 2009 Budget Development guidelines established by the City Council on April 1, 2008 and used by City Staff while preparing their proposed operating budgets: 1) A commitment to a City Tax Capacity Rate to meet the needs of the City and positioning the City for long-term competitiveness through the use of sustainable revenue sources and operational efficiencies. 2) Continued development of a fmancial plan to appropriately structure the expenditure of bond proceeds generated from the successful 2006 Open Space Referendum. 3) A fiscal goal that works toward establishing the General Fund balance for working capital at no less than 35% of planned 2009 General Fund expenditures. 4) A commitment to limit the 2009 debt levy to no more than 25% of the gross tax levy and a commitment to a detailed city debt analysis to take advantage of alternative financing consistent with the City's adopted Debt Policy. 5) A comprehensive review of the condition of capital equipment to ensure that the most cost- effective replacement schedule is followed. Equipment will be replaced on the basis of a cost 0 benefit analysis rather than a year based replacement schedule. 1 0 6) A team approach that encourages strategic planning to meet immediate and long-term operational, staffing, infrastructure and facility needs. 7) A management philosophy that actively supports the implementation of Council policies and goals, and recognizes the need to be responsive to changing community conditions, concerns and demands in a cost effective manner. Overall- Budget Development: Currently Staff is workinlZ on line item budgets. capital requests and 2008 revenue and expenditure estimates. The availability of additional tax levy in 2009 will be significantly limited by the low taxable market value percentage increase over 2008. Please refer to the attached "Pay 2009 Valuation Estimates" spreadsheet that depicts the past few years' comparative data. To compound the effort. a result of the most recent legislative session was the addition of Levy Limits for all cities over 2.500 in population for tax years 2009. 2010 & 2011. Staff is currently working with the State Department of Revenue on a "Certification of Payable 2008 Special Levies" (attached). that certification amount will basically be deducted from the City's 2008 gross levy to determine or 2008 levy base. Attached to this staff report is a City of Andover spreadsheet that indicates Administrations interpretation of what City levies are in and outside oflevy limits for the 2008 Levy. the spreadsheet also depicts levy years 2005-2007 and a proiected 2009. 0 Staff will make a brief presentation on levy limits at the meeting. but in summary the City will be allowed a percentage increase over a 2008 levy base and be eligible for some newly prescribed special levies for 2009. That percentage increase will allow for an increase of the lesser of3.9% or the rate of inflation. in addition. increases will be allowed for household and commercial growth. As part of a North Metro Mayors Association (NMMA) workshop. member cities and NMMA staff prepared a worksheet (attached) calculating estimated levies (absent newly prescribed special levies for 2009) for each member city. Relative to the newly prescribed special levies for 2009. the City of Andover will likely be eligible for the special levy for dealing with foreclosures and to pay costs attributable to wages and benefits for the sheriff contract. Staff is currently analyzing whether or not it is advantageous to the City to elect to use these special levies for the 2009 levy. I will explain at the meeting. but have attached the section of the Minnesota Session Laws relative to levy limits for Council reference. Fund BalancelRevenue Forecast Update: The Comprehensive Annual Financial Report for the year ended December 31. 2007 reported that the City did achieve it's 2008 budget goal of establishing the General Fund fund balance for working capital at no less than 35% of planned 2008 General Fund expenditures ($8.885.654). $3.417.244 was available. which equates to a 38.45% fund balance for working capital for the 0 2008 Budget. 2 0 The work being done by Staff relative to the 2008 revenue and expenditure estimates will assist in achieving the Council 2009 budget guideline that works toward establishing the General Fund fund balance for working capital at no less than 35% of planned 2009 General Fund expenditures. The estimates are also necessary to preserve the emergency reserve fund balances for core services (snow emergency ($60K), facility management ($60K), and information technology ($60K)) and economic development migration ($25K). These reserves were created through the past three years budget processes and are intended to prevent budget spikes in future years. Based on reviews to date. there are a number of 2008 revenue line items that are forecasted that will significantly not meet their 2008 budget. Most notably: . Finance Fees - Assessment Mgmt. - No assessments closing out in 2008 . Planning and Zoning Fees - Limited platting in 2008 . Engineering Fees - Limited development activity . Protective Inspection (Building) - Limited new housing starts . Interest Earnings - Bond market producing lower returns Based on reviews to date. there are a number of 2008 expenditure line items that are forecasted to significantly exceed their 2008 budget. Most notably: . Fuel (gas & diesel) - Increased fuel costs 0 . Sign Materials - All related (posts, reflective material, etc.) . Crack Fill and Seal Coat Materials - Product tied to petroleum prices . Garbage/Recycling Fees - Fuel surcharges . Salt and Sand - Increased number of snow events Staffmg and New Staffmg Requests: The deadline for new staffing requests is due July 3rd. I am anticipating that requests are forthcoming from the Fire Department and the Community Center. The sta:tImg request for the Fire Department will likely be accompanied by a grant application and the Community Center request will be requested to assist with concessions and program management. A staffing request for the Community Center will flow through the Community Center Advisory Commission and be dependent on available revenue sources. Personnel Related Implications: To date the following are projected issues facing personnel related expenses: 1. A total salary compensation adiustment package will ultimately be proposed to provide 0 wages that are competitive with other government entities. Human Resources has indicated that 2009 wage proposals in other communities for a cost-of-living increase are 3 0 ranging from 2.5% to 3.5%. At this point no percentage has been established and Council direction will be sought on this issue. 2. The proposed budget is currently carrying a 15% health insurance increase. This budget will be adjusted once a mid year review of the health plan is conducted in early July. You may recall that the City switched to a high deductible plan with a health spending account (HSA) in 2006. 3. Various departments have changes in the personal services do to the reallocation or retirements of staffmg in the respective departments. The allocation changes will be in Public Works, Engineering, Planning, Administration, Clerks and Finance departments. a. Public Works allocations are to be reflective of actual costs and staffmg moves related to the Public Works Superintendent's retirement (effective August 31, 2007); b. Engineering Department reflecting changing staffmg focuses and a Public W orkslEngineering department consolidation (approved at the August 8, 2007 Council meeting); c. Administration, Planning & Finance allocation reflecting changes in the amount of time charged to the TIP & EDA budgets. d. Finance department reflecting the elimination of funding for vacant positions (Finance Director & temporary staffing). 0 e. Clerks Department reflecting the retirement of the current City Clerk (effective July 1, 2008) and the subsequent Administration/Clerk department consolidation. Contractual Departments: 1. The City Attorney has not yet submitted a contract proposal. I am anticipating a slight modification to accommodate legal expenses that are not covered under the retainer agreement. 2. The 2008 City of Andover Law Enforcement expenditure budget is $2,318,241.00 which is offset by a Police State Aid revenue budget of $103,400 and School Liaison revenue budget of $81,542 reflecting a net tax levy impact of $2,133,299. The current Sheriff's contract provides for: a. 80 hours per day of patrol service b. 12 hours per day of service provided by a Community Service Officer c. School Liaison Officers in the middle school and high school d. Patrol Investigator (effective July 1, 2008) e. 50% of the Crime Watch Program's coordinator position. The 2009 Anoka County Sheriff's contract is being negotiated and close to a 10% expenditure increase is expected due to the following: 0 1. Employer PERA contribution increases that start in 2009 4 0 2. A full year of the patrol investigator versus the 2008 mid year implementation 3. Fuel prices 4. Increased equipment maintenance costs Direction is sought from the Council on whether or not additional services should be added to the contract. Administration is recommending status quo. Also the Anoka County Sheriff will be at a future Council Workshop meeting to discuss the current contract and the 2009 proposaL Council Memberships and Donations/Contributions: Staff has not yet received proposed 2009 membership fees, it is anticipated those will be received in time for inclusion in the July progress report. The following memberships are included as part of the 2008 General Fund budget: . League of Minnesota Cities $17,961 . North Metro Mayor $16,713 . Association of Metropolitan Cities (AMM) . $ 8,322 . Community Schools $45,200 . Mediation Services $ 3,040 . YMCA-Wm~SMetyProgram $ 4,000 . Youth First (Neighborhood Center) $12,000 0 The following donations/contributions are included as part of the 2008 proposed budget in other funds: . TH 10/169 Corridor Coalition $ 5,374 Road and Bridge Fund . Youth First - City Partner Fee $ 7,500 Charitable Gambling Fund . Alexandra House $12,500 Charitable Gambling Fund . Senior High Parties $ 1,200 Charitable Gambling Fund The Anoka County Partners (previously funded by the EDA Fund budget) dissolved in 2007, and the Alexandra House contribution was increased in 2008 from the previous 2007 contribution of $10,000. The Youth First (Neighborhood Center) contribution was new in 2008 and the Youth First (City Partner Fee was increased to $7,500 in 2008 from the previous $5,000 that had been in place since the inception of the Northwest Anoka County Community Consortium. Council direction is sought on Memberships and Donations/Contributions. Capital Projects Levy Capital Projects Levy - The 2008 Budget specifically designates $1,425,286 of the general tax 0 levy to capital projects and equipment needs relating to Capital Outlay ($210,000), Road and Bridge ($1,107,341), Pedestrian Trail Maintenance ($50,265) and Park Projects ($57,680). 5 0 Specific designation of the tax levy to anticipated City needs and priorities for transportation and trail maintenance, park projects and equipment outlays allows the City to strategically allocate its resources and raise the public's awareness of City spending priorities. The Road and Bridge levy is calculated according to Council Policy based on annual growth increases. with Capital Outlay. Pedestrian Trail Maintenance and Park Levies increased according to the City Council budget guidelines. The 2009 Budget number for the Capital Projects Levy is currently being analyzed as part of the 2009-2013 CIP and will be presented at a future workshop: Road and Bridge - This levy will be proposed for transportation programming related to maintaining City streets, roadways and pedestrian trails. This would be the sixth year that a portion of the Road & Bridge Fund is dedicated to pedestrian trail maintenance. This levy is also used for the City's seal coating and crack sealing programs and for street overlays. . Park Improvements -This levy will be proposed as an annual appropriation to be used to underwrite a wide range of park improvement projects as recommended by the Park and Recreation Commission and approved by the City Council. This funding is intended to be a long-term supplemental source of capital funding for park projects that would be separately identified in the City's Five-Year Capital Improvement Plan. . Capital Equipment/Proiects - Under the Capital Projects Levy a levy will be proposed to be designated to capital improvement/equipment project expenditures. Through this 0 designation, the City, over time, will be able to build a fund reserve to avoid cash flow "spikes" and address a wide range of capital improvement needs such as facility maintenance projects under a more controlled spending,environment. Debt Service Levy: Annually the Finance Department conducts a detailed debt service analysis to monitor outstanding debt and to look for early debt retirement or refinancing opportunities that will yield interest expense saving to the City, that process is currently underway. It is highly unlikely that savings will be found since such a significant effort was done during late 2006 and early 2007, which was followed by significant refmancing issuances. The 2009 Debt Service levy will need to provide for (at a minimum) the following debt service payments: . 2004A G.O. Capital Imp. Bonds $ 378,609 . 2004 EDA Public Facility Revenue $ 980,914 . 2006B G.O. Equipment Certificate $ 171,066 . 2007 G.O. Equipment Certificate $ 221,340 . 2008 G.O. Equipment Certificate $ 212,457 . 2008 G.O. Open Space Bonds $ 204,566 0 . 2009 G.O. Equipment Certificate $ 200.000 Total $2,368,952 6 0 The $200.000 levy for the 2009 G.O Equipment Certificate is contemplated (for equipment purchases) as part of the 2009-2013 CIP. The levy for the 2004 EDA Public Facility Bonds represents the levy designated in the pro-forma financial statements for the community center. ACTION REOUESTED The Council is requested to review the 2009 Budget progress and provide direction to staff on various budgetary items. Attachments 0 0 7 co LO co C") 0 (")~ * ~ r-- 0 Cl r-- Il') NO 0 CC!. C") CO N ~O leU CD .0 ~ 0) M M r--.O 0 11I11I': CO N CO CO 0 CO I- Cl. III ~ e Cl Cl CC!. CO Ill> ~ ~ r-: M ~ 0 0 C") N C") 0 N ~ ~ >. 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(1)~ D- u D-E Uc:..... u 0 u.o. D- O - I/) & MINNESOTA- REVENUE Due July 7, 2008 o Certification of Payable 2008 Special Levies Return to: Department of Revenue Mail Station 3340 St Paul, MN 55146-3340 Fax (651) 556-3128 CITY OF ANDOVER _,._w_~._-"","~.""" Special Levy Categories Pay 2008 Levy Bonded Indebtedness (Net Tax Capacity Based)... ... .,. ." ,., ,.. '" ". ." ,.. .,. .,. .,. ,.. ... ... ... .,.$ 0 Certificates of Indebtedness.. ... ................... ....... ........ .... ...... .... ,.. ,.... .............................. ..... $ 1,070,194 0\1... Payments for Bonds of Another Local Unit of Government ....................,........................,.. $ 934,203 o v... Principal and Interest on Armory Bonds ,... ........ ... ......... ................. ,........ ,....... .................... $ 0 Market Value Based Referendum Levies............Jf:.$,~:-I\Q...~.(,..!l~?f.qQO'....,... $ 165,900 ~1 I . Increases in Matching Fund Requirements forState or Federal Grants .....,..............,....... $ 0 Preparing for or Repairing the Effects of Natural Disasters .................,....,.....,........,......... $ 0 Correction for an Error in the Final Levy Certified to the County Auditor in the Preceding Year ,. ,.....,...........................,......, '........',....... ........................'.,.,.,.......,.............. $ 0 Levies for Economic Development Tax Abatements under M.S. 469.1815..,.................... $ 0 PERA Employer Contribution Rate Increases after June 30, 2001..................................... $ 0 Increased Costs for a Local Police or Salaried Firefighters Relief Association Facility ..... $ 0 Repayment of a State or Federal Loan Related to a State or Federal Transportation or Other Capital Project ..........., ....... '. ......... ............ ................. ........,......,.. $ 0 Levy for Storm Sewer Improvement District Costs under M,S. 444,20.,...........,....,....,....... $ 0 Costs for the Maintenance and Support of Society for the Prevention of Cruelty to Animals under M,S. 343.11 ..,........,.......................,.........,.....,........................... $ 0 ~-~~~--''''''~- _~_~____u, - I am the budget officer for the City of ANDOVER, and I hereby certify that the levy information listed above is accurate to the best of my knowledge. Signature Title Date Phone 0 Name (Print) @) City of Andover, Minnesota Property Tax Levy 0 2005 2006 2007 2008 2009 With In Levv Limits General Fund Levy $ 4,874,908 $ 5,640,212 $ 6,080,179 $ 6,526,135 Capital Projects Levy Capital EquipmentIProject 203,200 209,296 210,000 210,000 Parks Projects 52,800 54,384 56,000 57,680 Road & Bridge 679,899 734,686 1,052,953 1,107,341 Pedestrian Trail Maintenance 46,000 47,380 48,801 50,265 Lower Rum River Watershed 30,000 33,396 35,000 35,000 Total With In Levy Limits 5,886,807 6,719,354 7,482,933 7,986,421 8,297,891 14,14% 11,36% 6,73% 3,90% Outside Levv Limits Debt Service Funds Levy 200lC G,O, Equipment Certificate 283,210 283,537 - 2003C G,O, Equipment Certificate 132,030 132,180 - 2004A G,O, Capital Improvement Bonds 247,766 364,788 365,051 374,934 378,609 2004 EDA Public Facility Revenue Bonds 807,000 847,350 889,718 934,203 980,914 2005B Capital Improvement Bonds 137,922 126,305 122,622 - 2005B G,O, Equipment Certificate 200,000 65,788 63,945 2006B G,O, Equipment Certificate 188,475 171,832 171,066 2007 G,O, Equipment Certificate - 200,000 235,806 221,340 0 2008 G,O, Equipment Certificate - 165,000 212,457 *Est 2008 G,O, Open Space Bonds 162,900 204,566 *Est 2009 G,O, Equipment Certificate - 200,000 *Est Total Outside Levy Limits 1,670,006 1,831,565 1,833,494 2,167,297 2,368,952 9,67% 0.11 % 18,21% 9,30% Gross City Levy $ 7,556,813 $ 8,550,919 $ 9,316,427 $ 10,153,718 $ 10,666,843 13,16% 8,95% 8,99% 5,05% 0 @ ~ IX) W U) 'GlleD.... 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Minnesota Statutes 2006, section 275.70, subdivision 5, is amended to read: Subd. 5. Special levies. "Special levies" means those portions 2fad valorem taxe~.. levied by a local governmental unit for the following purposes or in the following manner: (1) to pay the costs of the principal and interest on bonded indebtedness or to reimburse for the amount of liquor store revenues used to pay the principal and interest due on municipal liquor store bonds in the year preceding the year for which the levy limit is calculated; (2) to pay the costs of principal and interest on certificates of indebtedness issued for "*? G~) any corporate purpose except for the following: (i) tax anticipation or aid anticipation certificates of indebtedness; - ~.J~ re\\&,'hJr (ii) certificates of indebtedness issued under sections 298.28 and 298.282; ~ (iii) certificates of indebtedness used to fund current expenses or to pay the costs of extraordinary expenditures that result from a public emergency; or . (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or +3 an insufficiency in other revenue sources; ~~t)\J~( ''bl (3) to provide for the bonded indebtedness portion of payments made to another A-- political subdivision of the state of Minnesota; e. r~\ ( (4) to fund payments made to the Minnesota State Armory Building Commission under section 193.145, subdivision 2, to retire the principal and interest on armory *'S"" construction bonds; ~ (5) property taxes approved by voters which are levied against the referendum A--.... ~\ ~ '\l-c o market value as provided under section 275.61; e ~~, (6) to fund matching requirements needed to qualify for federal or state grants or programs to the extent that either (i) the matching requirement exceeds the matching requirement in calendar year 2001, or (ii) it is a new matching requirement that did not exist prior to 2002; (7) to pay the expenses reasonably and necessarily incurred in preparing for or repairing the effects of natural disaster including the occurrence or threat of widespread or severe damage, injury, or loss oflife or property resulting from natural causes, in accordance with standards formulated by the Emergency Services Division of the state Department of Public Safety, as allowed by the commissioner of revenue under section 275.74, subdivision 2; (8) pay amounts required to correct an error in the levy certified to the county auditor by a city or county in a levy year, but only to the extent that when added to the preceding year's levy it is not in excess of an applicable statutory, special law or charter limitation, or the limitation imposed on the governmental subdivision by sections 275.70 to 275.74 in the preceding levy year; ~IO (9) to pay an abatement under section 469.1815; ~,J.a" ~.,.. (10) to pay any costs attributable to increases in the employer contribution rates 4- under chapter 353. or locally administered pension plans. that are effective after June e l(~;pJe. 30,2001; (11) to pay the operating or maintenance costs of a county jail as authorized in o section 641.01 or 641.262, or of a correctional facility as defined in section 241.021, subdivision 1 , paragraph (1), to the extent that the county can demonstrate to the commissioner of revenue that the amount has been included in the county budget as a direct result of a rule, minimum requirement, minimum standard, or directive of the Department of Corrections, or to pay the operating or maintenance costs of a regional jail @ as authorized in section 641.262. For purposes of this clause, a district court order is not a rule, minimum requirement, minimum standard, or directive of the Department of o Corrections. If the county utilizes this special levy , except to pay operating or maintenance costs of a new regional jail facility under sections 641.262 to 641.264 which will not replace an existing jail facility, any amount levied by the county in the previous levy year for the purposes specified under this clause and included in the county's previous year's levy limitation computed under section 275.71, shall be deducted from the levy limit base under section 275.71, subdivision 2, when determining the county's current year levy limitation. The county shall provide the necessary information to the commissioner of revenue for making this determination; (12) to pay for operation of a lake improvement district, as authorized under section 103B.555. If the county utilizes this special levy, any amount levied by the county in the previous levy year for the purposes specified under this clause and included in the county's previous year's levy limitation computed under section 275.71 shall be deducted from the levy limit base under section 275.71, subdivision 2, when determining the county's current year levy limitation. The county shall provide the necessary information to the, commissioner of revenue for making this determination; (13) to repay a state or federal loan used to fund the direct or indirect required spending by the local government due to a state or federal transportation project or other state or federal capital project. This authority may only be used if the project is not a local government initiative; (14) to pay for court administration costs as required under section 273.1398, subdivision 4b , less the (i) county's share of transferred fines and fees collected by the district courts in the county for calendar year 2001 and (ii) the aid amount certified to be ~l5 o paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes levied to pay for these costs in the year in which the court financing is transferred to the }\.Ja"ft' state, the amount under this clause is limited to the amount of aid the county is certified to receive under section 273.1398, subdivision 4a; c.ou\4 b~ --t) (15) 10 fund a police or firefigh1ers relier association as required under section 69,77 ~ <9- ~ \~~;~ 't to the extent that the required amount exceeds the amount levied for this purpose in 2001; (16) for purposes of a storm sewer improvement district under section 444.20; ftftti (17) to pay for the maintenance and support of a city or county society for the prevention of cruelty to animals under section 343.11. If the city or county uses this special levy, any amount levied by the city or county in the previous levy year for the purposes specified in this clause and included in the city's or county's previous year's levy limit computed under section 275.71, must be deducted from the levy limit base under section 275.71, subdivision 2, in determining the city's or county's current year levy limit:-; (18) for counties. to pay for the increase in their share of health and human service costs caused by reductions in federal health and human services grants effective after September 30. 2007~ (19) for a city. for the costs reasonably and necessarily incurred for securing. ~ 111 maintaining. or demolishing foreclosed or abandoned residential properties. as allowed by the commissioner of revenue under section 275.74. subdivision 2. A city must have either 4~,j()-)#". (i) a foreclosure rate of at least 1.4 percent in 2007. or (ii) a foreclosure rate in 2007 in the city or in a zip code area of the city that is at least 50 percent higher than the average e\~\~'ol~ o foreclosure rate in the metropolitan area. as defined in Minnesota Statutes section 473.121. ---=- - subdivision 2. to use this special levy. For purposes of this paragraph. "foreclosure rate" :::::::---- means the number of foreclosures. as indicated by sheriff sales records. divided by the number of households in the city in 2007; (20) for a city. for the unreimbursed costs of redeployed traffic control agents and @ lost traffic citation revenue due to the collapse of the Interstate 35W bridge. as certified ~ ~ 1 to the Federal Highway Administration; ~ (21) to pay costs attributable to wages and benefits for sheriff, police. and fire ~ .j o personneL If a local governmental unit did not use this special levy in the previous year its 1\ 0J"f1 levy limit base under section 275.71 shall be reduced by the amount equal to the amount it -el,t~~ol 't. levied for the purposes specified in this clause in the previous year; and (22) an amount equal to any reductions in the certified aids or credits payable under sections 477A.011 to 477A.014. and section 273.1384. due to unallotment under section 16A.152. The amount of the levy allowed under this clause is equal to the amount unallotted in the calendar year in which the tax is levied unless the unallotment amount is not known by September 1 of the levy year. in which case the unallotment amount may be levied in the following year. EFFECTIVE DATE.This section is effective for taxes levied in calendar year 2008 and thereafter. payable in 2009 and thereafter. Sec. 2. Minnesota Statutes 2006, section 275.70, is amended by adding a subdivision to read: Subd. 6. Levy aid base. "Levy aid base" for a local governmental unit for a levy year means its total levy spread on net tax capacity. minus any amounts that would qualify as a special levy under section 275.70. plus the sum of (1) the total amount of aids and reimbursements that the local governmental unit is certified to receive under sections 477A.011 to 477A.014 in the same year. (2) taconite aids under sections 298.28 and 298.282 in the same year. including any aid which was required to be placed in a special fund for expenditure in the next succeeding year. and (3) payments to the local o governmental unit under section 272.029 in the same year. adjusted for any error in estimation in the preceding year. EFFECTIVE DATE. This section is effective for levies certified in calendar year 2008. payable in calendar year 2009 and thereafter. Sec. 3. Minnesota Statutes 2006, section 275.71, is amended to read: 275.71 LEVY LIMITS. Subdivision 1. Limit on levies. Notwithstanding any other provision of law or It ~,,~~ l\et municipal charter to the contrary which authorize ad valorem taxes in excess of the limits 'fli/IiIf! 00. O~Vl' established by sections 275.70 to 275.74, the provisions of this section apply to local t t"U-eV\C1e ' governmental units for all purposes other than those for which special levies and special . assessments are made. Subd. 2. Levy limit base. ~ The levy limit base for a local governmental unit for taxes levied in 2993 is eqtlft'l 16 its atij1:lMealec.'j" limit Base ifl1fte flfey.-i61:lS :) eM, Stlbjeet 16 MlY atij1:l:ftmelits l:1ft6ef seea.6li 275.72, J5lm MlJ!tia Mft6Mls reeei.ea in 2993 l:tfttkr seea6fl273.138 6r 273.166, min1:ls 1fte Mffefeftee BM\-.'eeft it31evy limit Maer S1:lBaY.>isi6li 5 f6f MxeS le".-iea ifl2992 Ml6 1:fte Mfte1:l:l1t it aefttftlly le-.>ieaMaef 1:fttit S1:lBMvisieli in 1:fttit yeM, Ml6 eeftifiea Pf'8peofiy ~r fet'laeemeflt ftial'ftyftBle ifl2993 l:ifttler seea.8fl 171.212. 2008 is its levy aid base from the previous year. subject to any adjustments under section 275.72. For taxes levied in 2009 and 2010. the levy limit base for a local governmental unit is its adjusted levy limit base in the previous year. subiect to any adjustments under o section275.72. 81:lba. 3. Atljllstm~llts (01 state. taIu.6'us. (ft) 'The le\'Y limit bltSe rer eaek 16eM ltftit sf gs. emftl.elit sftftll Be adjliMea ts reBeet 1:fte aS~I'a.sli ~ the ~te sf:finfme~ f6f' eeftftitl g6~.-ePflftlelit :funt;ti6M ltS ittftiefttea ifl this S1:lBM /bi8fl. Cb} F Sf a e6Mty in ft j1:ltlieial tliMriet fef -;.-mea i'ifleBeiftg :I3:ft3 ft6t Beeli 1:Pftnsfel'fea @ t6 tfte :3tftte 6,' Jmulfu-y 1, 2991, tfte le~' limit ea:3e :rer 29B 1 i:3 l'eflftMlelltly leatleea ey tfte ttfI'la1:IDt aftlie ea1illtY':3 2991 eli~et far eal:lrt ftEI:mifti:3tmttall ee:it3, as eefliftea 1:U.1der o seetiaIl273.1398, :3lieay;hiall-4e, I'ttfflgfapft (loJ), Ilet af!Be e6ttft.ty's Sftttre eftfftmfcl"l'ea :fifies Mia fees eelleetea ey !Be ai:m;et eal:l:rt:3 iB tfte eaM!)" fer tfte :3ft:6'ie eliaget I'enaa. (e) Fer a gty;emftleIitftl1:mit -..r;hiekle-..iea a${ ift 2999 l:tIltler :3eefleIl473.388, :itieai.. i:3iell 7 , tlie le;.." limit ea:3e :rer 29B 1 i:3 l'eJ"ftumell#Y l'ealieea ey tu1 ttfI'leMt efil:lftl t6 !Be :3l:tfti eftfte gay;emftlefl.tftlltfiit':3 ~:3l'a) aele 2991 ft6~ ~it sel"r,:iee:31e ~ I'las tfte l'effleIi ef i~ 2991 ft6me:3teatllUltl agriettifMftI ereatt aia 1:J:ft6er seeaeIi 272.1398, :3lieM-{i:3iall 2 , atft'felitftele te ft6Meet tmn:3it :3eniee:3. (a) fer e6tmae:3 in ajltttieial aiMriet m ..hiek!Be ~te a:3~ea finMteing ef mftl.'l6atea :3ef'dee:3 eaMS as aeftnea m seettell 189.181, :3lieai-;isieIi 1, ell.lttl). 1, 29B 1, tfte Ie r.f limit ea:3e :rer ~s le7iea in 2991 is I'el"ftlflftefl.tly l'edtteea BY Mi ft:6'ie1illt efi1:tttl t6 eM ftttlf ef!Be aia :realiet1.allltftder seeflell 273.1398, :3lieM-ii:3iall 1 a, I'ftl'ftgftll'ft (g). Subd. 4. Adjusted levy limit base. ~ For taxes levied in ~ 2008 through 2010, the adjusted levy limit base is equal to the levy limit base computed under :itieai.. i:3ieIl:S 2 ftft&.3. subdivision 2 or section 275.72, :realieea ey 19 I'efeellt af!Be ai:tIereM6 eef'r,.-..>e61l (1) !Be ~ ef2993 eerti:liea aia I'aymellts, ltftder seeaam 272.138, 273.1398 eJ~e61't fer ttfI'latJftt3 6erttfiea ltftdef :3lieai-;hiaIl4a, I'ftl'ftgftlpft (5), 273.166, 477A.911 t6 477A.03, 17'M,9~, oBd 17"'.,97, before lIfly rcll1lC!ion _ La... 2Q93, Fi<st Epooiol Eoooio.. % eft8.l'ter 21, artieles 5 ftfta 6, Mia (2) tfte ~ af!Be aies I'aia ift 2991l:l:1lt4er tft6:3e sft:6'ie ""eti_, Mlcr MiY ..._&IID ill 2991llBt!et' IE"" 2093, Fits! Epeoitol Soss;"" e!lop!er 21, \\~'-e. flftieles 5 M1ti 6. multiplied by: C\ Ow (1) one plus the lessor of3.9 percent or the percentage growth in the implicit price ~eJj deflator: o (2) one plus a percentage equal to 50 percent of the percentage increase in the number \.{tA.<i?l5 of households. if any. for the most recent 12-month period for which data is available: and p (3) one plus a percentage equal to 50 percent of the percentage increase in the taxable market value of the jurisdiction due to new construction of class 3 property. as defined in section 273.13. subdivision 4. except for state-assessed utility and railroad property. for the most recent year for which data is available. (loJ) fer tftxe:31etiea ift 2993 eniy, !Be atljli:ffea Ie.., limit efl:3e h me:reft3ea By 69 I'efeellt af!Be aHEreftee eetv.eell ajtirisaieaeIi's mM'ket \'ftft!e ereait ift 2993 eefare MiY :realieaalls ltftder La..:3 2993, firM Sl'eeill:l Se:33iell efi8.ptef 21, 8ftieles 5 ft.ftti 6, f1na its -,1,' mM'1ret -..1tltle el'eatt ift 2994 a:fter l'eal:letiell3 m La7..'S 2993, fifM Sl'eeiftl Sessiall eMl'ter 21, artieles 5 ft.ftti 6. Subd. 5. Property tax levy limit. For taxes levied in ~ 2008 through 2010, the property tax levy limit for a local governmental unit is equal to its adjusted levy limit base determined under subdivision 4 plus any additional levy authorized under section 275.73, which is levied against net tax capacity, reduced by the sum of (i) the total amount of aids and reimbursements that the local governmental unit is certified to receive under sections 477A.011 to 477A.014, eJteeJ't fer tfte met'ease:3 ift eity aia eases ift eftlel'ldM yeM' 2992l:l:1lt4er seettell177A.911, slietWr.isiell 36, I'M~pft3 (1), (Il), ftI.'l6 (a), (ii) kametiteatlltftd ~e1:tlfuml aias it is eefti:liea te reeey;e ltftder :3eetlall 273.1398, (iii) (ii) taconite aids under sections 298.28 and 298.282 including any aid which was required to be placed in a special fund for expenditure in the next succeeding year, (h) teml'aftuy o ea1:Ht ftia l:ltltler seetlall 273.1398, :itieM-..isiall 4fl, Mia (v) (ill) estimated payments to the local governmental unit under section 272.029, adjusted for any error in estimation in the preceding year. and (iv) aids under section 477A.16. Subd. 6. Levies in excess of levy limits. If the levy made by a city or county exceeds the levy limit provided in sections 275.70 to 275.74, except when the excess @ levy is due to the rounding of the rate in accordance with section 275.28, the county auditor shall only extend the amount of taxes permitted under sections 275.70 to 275.74, as provided for in section 275.16. o EFFECTIVE DATE.This section is effective for levies certified in calendar years 2008 through 2010. payable in 2009 through 2011. Sec. 4. Minnesota Statutes 2006, section 275.74, subdivision 2, is amended to read: Subd. 2. Authorization for special levies. wlA local governmental unit may request authorization to levy for unreimbursed costs for natural disasters under section 275.70, subdivision 5, clause (7). The local governmental unit shall submit a request to levy under section 275.70, subdivision 5, clause (7), to the commissioner of revenue by September 30 of the levy year and the request must include information documenting"the estimated unreimbursed costs. The commissioner of revenue may grant levy authority, up to the amount requested based on the documentation submitted. All decisions of the commissioner are fmal. (b) A city may request authorization to levy for reasonable and necessary costs for securing. maintaining. or demolishing foreclosed or abandoned residential properties under section 275.70. subdivision 5. clause (19). The local governmental unit shall submit a request to levy under section 275.70; subdivision 5. clause (19). to the commissioner of revenue by September 30 of the levy year and the request must include information documenting the estimated costs. For taxes payable in 2009. the amount may include unanticipated costs incurred above the amount budgeted for these purposes in 2008. Costs of securing foreclosed or abandoned residential properties include payment for police and fire department services. The commissioner of revenue may grant levy authority. up to the o lesser of (1) the amount requested based on the documentation submitted. or (2) $3.000 multiplied by the number of foreclosed residential properties. as defined by sheriff sales records. in calendar year 2007. All decisions of the commissioner are final. EFFECTIVE DATE. This section is effective for levies certified in 2008 through 2010. payable in 2009 through 2011. "t()~b}-, \'\Of - ::t> dit~o C)6 '" (p\ \ \t5t i c. ~ X \ L.l () 0 ~ @ (!5V 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER,MN.US To: Mayor, Council Members ~ CC: Jim Dickinson, City Administrator FROM: Will Neumeister, Community Development Director t~__ SUBJECT: Comprehensive Plan Update Discussion DATE: June 24, 2008 INTRODUCTION This brief summary covers what has been submitted by other surrounding jurisdictions and the progress we are making on the processing of the Comprehensive Plan update. . We have reached the halfway point in the six-month review/comment period. Staffhas received three cities comments (Ham Lake, Ramsey and Coon Rapids) and one school district's (Anoka-Hennepin District 11). Nothing of any consequence or concern has surfaced from them. None of those had any comments or criticism of our plan. Anoka County has commented and their concerns were mostly 0 about the Transportation Plan. The City Engineering Department has been reviewing their comments. . Coon Rapids has sent us their plan and we have responded to the Coon Rapids Plan with ''No Comment" as they are not changing anything abutting the City of Andover borders. All land in Coon Rapids bordering the City of Andover is either single family residential or parkland. . Oak Grove has submitted their plan for our review and comment. Attached please fmd a colored copy that shows they are contemplating a MUSA expansion that would tie into the East Bethel sewer plant that is being planned. The area abuts Andover's northern border. Staff would like Council input on what type of response the City should make to this proposal. ACTION REOUESTED This is an update of our progress in getting comments and also request Council input on the above mentioned items. Respectfully Submitted, Will Neumeister ~ Attachment: Oak Grove Land Use Plan 0 0 DEVELOPMENT FRAMEWORK - 2030 LAND USE PLAN . . 2030 LAND USE PLAN The previous section of the Land Use Plan describes the City's efforts to define Oak Grove's rural development areas and areas for future urban services and development. Based on these defined boundaries within Oak Grove, the proposed 2030 Land Use Plan has been prepared. The following map identifies an area of future land uses that corresponds with the City's 2030 MUSA boundaries. The MUSA expansion area is intended to be a holding zone until the City is ready for the introduction of regional utilities into the area. The Metropolitan Council has projected the East Bethel plant to be constructed and in service post 2010. The anticipated availability of regional utilities to Oak Grove is 2030, however, the City may select an earlier target date through their Comprehensive Plan update or a future plan amendment. In discussion with Metropolitan Council staff, the region will give East Bethel a ~ grace period to implement their infrastructure and land use goals before opening other MUSA <- beyond East Bethel's boundaries. With this consideration, the earliest Oak Grove would receive 0 sewer from the East Bethel plant will likely be 2020. In preparation for future utilities and urban development, the City of Oak Grove will be required to provide the following, along with the Comprehensive Plan amendment: . Comprehensive Sanitary Sewer Plan . Comprehensive Water Supply Plan . Comprehensive Storm Water Management Plan . Development Regulations for Urban Development 0 2030 COMPREHENSIVE PLAN . . *~pYOak Grove 125 0 DEVELOPMENT FRAMEWORK - REGIONAL PLANNING DESIGNATION . . 2. The urban service area must be large enough to product sufficient wastewater flows to make the extension of sanitary sewer fmancially and physical practical. Metropolitan Council staff indicated the MUSA area should provide a minimum of 1,000 buildable acres and/or generate projected sewer flows of 500,000 gallons per day. The proposed Oak Grove MUSA contains 2,680 gross acres and 1,000 net buildable acres, accounting for unbuildable environmentally sensitive land and existing development on lots having an area of less than 10 acres. (See the Net Developable Land Map) 3. According to Metropolitan Council staff, the East Bethel WWTP will be in service by 2010 if construction goes well. The Metropolitan Council is not anticipating the ~ extension of regional utilities to Oak Grove prior to 2030. The City may request earlier ~ utility availability through its Comprehensive Plan update, however, the Metropolitan Council would like to give East Bethel a time period to initiate its development objectives prior to expanding the regional sewer availability. In this light, Metropolitan Council staff suggested that if requested by Oak Grove, the earliest utility availability to the City may be 2020. 0 The City of Oak Grove must determine the timing of utility availability. In this decision, the City must recognize that they will share in the cost of extending regional sewer into the City and provide for local utility systems (i.e., water supply, storm sewer, local streets). The advent of introducing utilities to Oak Grove will require the following: a. A Comprehensive Sanitary Sewer Plan. This plan would identify the routing and sizes of all trunk sanitary sewer lines. The plan would also identify the location and size of rapid infiltration basins that would serve Oak Grove's MUSA. b. A Comprehensive Storm Water Management Plan. With urban densities, the City will need to prepare a Comprehensive Storm Water Management Plan that outlines plans and policies to deal with storm water, drainage, storage, and treatment within the urban development areas. c. A Comprehensive Water Supply Plan. This plan would identify a general plan and policies for an urban water system including wells, storage, and water trunk routes. These plans will be required to address not only the physical needs of the new urban growth area, but will also be required to define the City's fees and charges to cover the cost of these urban utilities and services. 0 2030 COMPREHENSIVE PLAN . . ~f'0ak Grove 99 '" "- ~ o ,-,"'\ -~:: cj :3 O >...... .~g ~ iti.s.~ g ~ a o -a ~ ~ i .~ ':. . C1) Ci i co ~--s 2 _ II. .... :;:l '0 :;:l ,'''<<0 .!!! 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WWW.CI.ANDOVER.MN.US TO: Mayor & Council Members FROM: Jim Dickinson, City Administrator SUBJECT: Supplemental Agenda Item for June 24,2008 City Council Workshop DATE: June 24, 2008 The City Council is requested to receive the following supplemental information. Item #7. Award Quote/07-37A/Metropolitan Mosquito Control (Supplemental) - Engineering --- -(2) 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . {763} 755-5100 FAX {763} 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Council Members CC: Jim Dickinson, City Administrator David D. Berkowitz, Director of Public Works/City Engineer FROM: Jason J. Law, Asst. City Engineer SUBJECT: Award Quote/07-37 A/Metropolitan Mosquito Control (Supplemental) - Engineering DATE: June 24, 2008 INTRODUCTION This item is in regard to quotes for Phase 2 of the extension of sanitary sewer for the Metropolitan Mosquito Control District (MMCD) building located at 1260 Bunker Lake Boulevard NW, Project 07-37A. Phase 1 construction has been completed. DISCUSSION Quotes were received on Monday, June 23rd at 10:00 a.m. Quotes received are as follows: Contractor Ouote Amount Forest Lake Contracting $48,630.00 W.B. Miller $53,065.50 Engineer's Estimate $48,790.00 BUDGET IMPACT The improvement costs for Phase 2 of the sewer line for the MMCD would be assessed over an 8- year period. The quote amount exceeds the feasibility report estimate of $44,155.10. The main reason for the increased price is a fiber optic cable was relocated along the same line as the proposed Phase 2 sewer after the site was originally surveyed for preparation of the plans. Working along this fiber optic cable makes the installation much more difficult and in turn, more expensive. ACTION REQUIRED The City Council is requested to approve quotes and award the work to Forest Lake Contracting in the amount of $48,630.00 for Project 07-37 A, Metropolitan Mosquito Control Sanitary Sewer Extension, Phase 2. Attachments: Quote Tabulation cc: R. Richard Gauger, Gauger Engineering, Inc., 35 W. Water Street, St. Paul, MN 55107 William J. Caesar, MMCD, 1260 Bunker Lake Blvd. NW, Andover, MN 55304 Jon VonDelinde, Anoka County Parks Metropolitan Mosquito Control Sewer Extension - Phase 2 Quote Tabulation City Project 07-37A Andover, Minnesota Sanitary Sewer Improvements - Phase 2 Engineer's Estimate Forest Lake Contracting W.B. Miller ITEM EST. UNIT UNIT UNIT No. DESCRIPTION UNITS QUAN PRICE TOTAL PRICE TOTAL PRICE TOTAL 1 Mobilization LS 1 $5,000.00 $5,000.00 $1,800.00 $1,800.00 $5,000.00 $5,000,00 2 Traffic Control LS 1 $500,00 $500.00 $400.00 $400.00 $2,500.00 $2,500.00 3 Connect to Existinq Manhole EA, 1 $2,000.00 $2,000,00 $2,500.00 $2,500.00 $1,800.00 $1,800.00 4 Connect to Existina 6" PVC Service Stub EA. 1 $1,500.00 $1,500,00 $1,200,00 $1,200.00 $1,200,00 $1,200.00 5 8" PVC Sanitarv Sewer, SDR 26 (12-18' DeeD) LF 402 $47.00 $18,894,00 $52,00 $20,904.00 $59.75 $24,019,50 6 48" Sanitary Manhole Type 301 (0-10' Deep) EA. 1 $2,900.00 $2,900,00 $2,900.00 $2,900.00 $3,500.00 $3,500.00 7 48" Manhole Extra Depth LF 1.4 $150.00 $210,00 $100.00 $140.00 $400.00 $560,00 8 Jet and Vacuum Clean Sanitarv Sewer LF 462 $1.50 $693,00 $1.50 $693.00 $2.00 $924.00 9 Televise Sanitary Sewer LF 462 $1.50 $693.00 $1.50 $693.00 $1.00 $462,00 10 Concrete J-Barrier LF 500 $11,00 $5,500.00 $11.00 $5,500.00 $15.00 $7,500.00 11 Dewaterina LS 1 $10,000.00 $10,000.00 $10,700.00 $10,700,00 $5,000.00 $5,000,00 12 Seed (Type 60B) and Mulch (Type 1) AC 0.3 $3,000.00 $900,00 $4,000.00 $1,200.00 $2,000.00 $600.00 TOTAL QUOTE $48,790.00 $48,630.00 $53,065.50