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HomeMy WebLinkAboutWK - August 25, 2009 C I T Y O F © ( A 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, August 25, 2009 Conference Rooms A & B 1. Call to Order — 6:00 p.m. 2. Discuss Resident Request — Manufacturing Ammunition on Residential Property - Planning 3. Open Space Update - Planning 4. Discuss Wireless Tower Placement Opportunities -Administration 5. Continued Discussion on Renewable Energy Options /Goals - Planning © 6. Progress Report/ Single Family Residential Rental Program - Planning 7. Progress Report on Hughs Industrial Park & Interim Uses — Planning /Administration 8. 2010 -2014 Capital Improvement Plan Progress Report - Administration 9. 2010 Budget Progress Report - Administration 10. Preview 2010 Preliminary Tax Levy - Administration 11. Other Discussion 12. Adjournment p A C I T Y NDOVtE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.AN DOVER. MN.US ANDOVER CITY COUNCIL WORKSHOP MEETING — AUGUST 25, 2009 MINUTES The Workshop Meeting of the Andover City Council was called to order by Mayor Mike Gamache, August 25, 2009, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Sheri Bukkila (arrived at 7:55 p.m.), Don Jacobson, Mike Knight, Julie Trude Councilmember absent: None Also present: City Administrator, Jim Dickinson Community Development Director, Will Neumeister City Planner, Courtney Bednarz Others p DISCUSSRESIDENTREQUEST— M4NUFACTURINGAMMUNITIONONRESIDENTL4L PROPERTY Mr. Bednarz explained a resident requested to manufacture ammunition at his home in northern Andover. Councilmember Jacobson asked if they would need to approve a Conditional Use Permit (CUP). Mr. Bednarz thought if the Council was interested they might want to modify the home occupation ordinance to allow it. Councilmember Knight asked how large the property is. Mr. Mark Coppage stated it is hard to say, the deed indicates 2.5 acres, they are in an area that is not built up. Mr. Coppage made a presentation to the Council in regard to what his home occupation involved. Councilmember Trude wondered if Mr. Coppage did this where he used to live. Mr. Coppage stated he has done this for over thirty years. He stated he has made ammunition both for himself and commercially. He explained in Ohio he had a shop and had a firearms license; he used to make ammunition in his house for resale while living in Ohio. Councilmember Jacobson asked what was meant by a commercial basis. Mr. Coppage stated he planned on selling the ammunition, not just making for himself. Councilmember Jacobson asked if Mr. Coppage had an idea what the volume of ammunition he would make to sell. Mr. Coppage stated it would be around 10,000 round per month on a minimum basis and it would be for handguns and sold at sporting good stores, he would not sell the ammunition to individuals from his home. Andover City Council Workshop Meeting Minutes —August 25, 2009 Page 2 Councilmember Jacobson asked for information on what Mr. Coppage means by temporary basis. Mr. Coppage stated he would like to eventually move his business to a storefront but with the economy the way it is it is hard to get a loan and he would not be able to afford purchasing a place without a loan. He stated he needs to get his Federal license in order to sell to a distributor but in order to get the license he has to have a place of business. Mr. Dickinson stated right now this home occupation is not allowed and Mr. Bednarz has done some research with other communities. He wondered if the Council felt it is worth Mr. Coppage's time to go further and apply for a home occupation license in the City. Councilmember Trude asked how their code is designed because she thought home businesses had certain requirements such as three acres or more and needed to have a separate building where the business is conducted. Mr. Bednarz stated it is, if a business is operating out of a house or garage they had to have at least three acres. Councilmember Trude stated they would be opening the door to all kinds of businesses if they allowed this. Mr. Coppage thought the ordinance could be changed to review on a case -by -case basis, which would limit people from opening businesses without approval. Mayor Gamache stated he didn't have a real problem with this. He asked where in the home his business was located. Mr. Coppage stated it is in a separate room in the basement. Mayor Gamache asked if there were any requirements for fire safety issues. Mr. Coppage stated ATF will come out and inspect the property and if they see something they will tell him. He stated they do have smoke alarms in the basement and they are looking into a security system for the entire house including the basement. He stated there will not be any signs put outside of his home advertising his business. Mr. Coppage stated if he had all the supplies in his basement to reload for bullets for himself the Council would not have a problem with this but when it turns into a business the Council has a problem. He wondered what the problem was. Councilmember Trude stated the concern is with turning the home into a retail space. Mr. Coppage stated he would not be selling directly from his home. Councilmember Jacobson stated he would not have a real problem if the business were in a separate building on three acres or more of land. Mayor Gamache stated there is one thing he sees that is a benefit to him is Mr. Coppage came to the Council. The business could be done online. Mr. Coppage stated he would not have sales on site. Mr. Dickinson thought they were getting into a lot of detail level here and said the reason this © Andover City Council Workshop Meeting Minutes —August 25, 2009 Page 3 was brought to the Council was to see if it is worth Mr. Coppage applying for a home business permit. Councilmember Trude stated she would not be in favor of this because they do not allow a business to be in home if there is less than three acres and he does not have a separate building for the manufacturing part of the business. Mr. Coppage stated that is the reason why he is here to see if this could be amended. Councilmember Jacobson stated the issue is if Mr. Coppage met the current requirements, which he does not. He does not have a suitable building, which was designed correctly, and he does not have three acres or more so if they amended the ordinance to allow this they would be opening it up to allow businesses on less than three acres. He stated he would not be in favor to have his business in the basement. Councilmembers Jacobson, Knight and Trude are not in favor of this unless it is more than three acres. Mayor Gamache indicated he is fine with this. ® Mr. Coppage thought City law needed to be changed to a case -to -case basis. Mr. Dickinson explained that approval of the business is probably not going to be successful in Andover. He explained he did not think Mr. Coppage would be successful in getting a home business permit and suggested he look at the manufacturing areas in the City to do his business. Mr. Coppage wondered what the Council's objections are to this. Councilmember Jacobson stated his objection would be a change to the ordinance would affect all of Andover. Mayor Gamache stated the reason he is more in favor of this is because he is checked by more agencies, ATF, and would need to be in compliance with them. He did not think they would run into a situation where someone would not be safe. Councilmember Jacobson stated what is in question is if they want to change the ordinance and he did not think the Council wanted to do that. Councilmember Jacobson stated Mr. Coppage could bring this forward to the Planning Commission and see if they would be in favor of recommending changing the ordinance and then it would be brought forward to the Council for approval or denial. Mayor Gamache stated if they did change the ordinance they could spell out the requirements for this type of business. © The Council explained their reasons for not wanting to change the ordinance to allow these types of businesses. Mr. Coppage stated he is at the point where he wants to start a business on a part time basis until he can decide if it is worth it to make it full time and could not justify purchasing or renting © Andover City Council Workshop Meeting Minutes —August 25, 2009 Page 4 space. He stated he understood the Council's position but did not necessarily agree with it and he appreciated the time to address them. OPEN SPACE UPDATE Mr. Bednarz updated the Council on the Open Space Meetings and indicated the Commission wanted to know if it would be ok with the Council to continue to pursue the property the residents are willing to sell even without matching grant funds. Open Space Commission Members at the meeting: Jim Olson, Gretchen Sabel and Winslow Holasek. Councilmember Jacobson asked what the original asking price was. Mr. Olson stated the original price was 1.2 million and the City's offer was initially $750,000. Mr. Bednarz stated the owners revised their price to 1.1 million. The appraisal came in at $836,000. © Councilmember Trude stated she would like to keep moving on this since it is a nice parcel on the river. She did not think they would have another opportunity to purchase land like this along the river. Mr. Dickinson stated relative to continue negotiating with the owners they would be reengaging in negotiations because the price could change for either side. At this point in time they are looking at gauging interest. It was pretty obvious that the City number is too low and the property owner's is too high. Mayor Gamache asked if there is any other option for grants. Mr. Bednarz stated at this point it is looking pretty bleak; the cycle is pretty much over unless they find a private donor or other organization willing to help. He did not see where they could find funds. Councilmember Jacobson stated they still have the legacy tax that was added on that would be additional money to use. Mr. Bednarz explained how this would work. Councilmember Jacobson asked how much money they have that they could use to purchase open space. Mr. Dickinson stated they have the ability to bond up to two million dollars. He stated they have been levying and the thought process is they would be using some of that for capitalized interest and they would be able to reduce the dollar amount by whatever they have levied. In essence they will be doing the equivalent of a two million dollar bond. © Councilmember Knight wondered if they could pay the property owners over time to save them some taxes. Commissioner Olson stated that was the thought process their group was thinking. Mr. Dickinson stated they do not want to give them tax advice and they do not want the open space purchase to set the market value of properly in the City. © Andover City Council Workshop Meeting Minutes —August 25, 2009 Page 5 Councilmember Jacobson suggested they proceed with further discussion and see if the price can come down to a reasonable price and spread the payment over a number of years. He asked if the Commission still wanted to pursue this. The Commission indicated they did. Councilmember Trade asked if the Commission has had a chance to go to the property and walk it. She asked what is interesting to them. Commissioner Olson stated this is one of the nicest pieces the Commission has looked at and is on the river. Councilmember Trade stated the uniqueness of it on the river may distinguish it from other parcels in the community. Commissioner Holasek stated this is a nice parcel and they have a willing seller and it may not always be that way. Mr. Dickinson stated they are looking for Council opinion and consensus on this. Councilmember Trade asked for the Commission feedback on the golf course. Commissioner Sabel stated the greens are shot and it would take a lot of time and money to get them back to wetlands. © Commissioner Holasek stated it would make a nice park for soccer or something like that. Mayor Gamache thought the Council is in favor of pursuing the land along the river. Mr. Dickinson asked in regard to the golf course land if there was discussion on value relative to preserving anything along the Coon Creek Corridor as far as open space. The Commission indicated they have not. Councilmember Trade asked if the property on the west side of Andover was done. The Commission stated the owners have decided not to sell but it could change depending on the family needs. DISCUSS WIRELESS TOWER PLACEMENT OPPORTUNITIES Mr. Dickinson stated wireless tower site consultants have been recently focusing on placement opportunities in the City of Andover. Mr. Dickinson updated the Council on current negotiation progress of known sites. Councilmember Trude wondered if they could put in a civil defense siren to justify putting in a monopole for the wireless company at the park in Shadowbrook next to Ham Lake. Mr. Dickinson © stated that was a good idea and he thought they could split costs with Ham Lake. Councilmember Trade thought a park in the southern part of the City would be better to have a monopole put in for the wireless. Mr. Dickinson stated the company looking is a wireless internet company, not a cell phone company. Andover City Council Workshop Meeting Minutes —August 25, 2009 Page 6 The Council is open to negotiations and hearing about what the wireless companies have to offer. CONTINUED DISCUSSION ON RENEWABLE ENERGY OPTIONS /GOALS Mr. Neumeister stated this report will focus only on wind turbines and the potential adoption of a code section that would allow wind turbines in the City of Andover. Mr. Neumeister reviewed the information with the Council. The Council is in agreement that they would like to continue to pursue this. Councilmember Jacobson stated a lot of these smaller units advertised, actual operation is substantially under what is advertised and expensive to install. He explained the requirements for these types of wind turbines. He noted because of the requirements it almost eliminates them from an R -4 or smaller parcels. Councilmember Trude wondered if they would consider allowing these in association areas with larger open areas. Councilmember Knight thought they could put one behind the high school so it would not even be noticed. Mr. Dickinson stated the residential ones are about making a statement and not making money. Mayor Gamache stated the information is about what is currently available and what is out there but they do not know what will be here in the future. Councilmember Jacobson stated his concern is if this is put in an R -4 District the fall distance would not be adequate in most areas because of trees and buildings. Councilmember Knight thought they needed to look beyond residential and research commercial use and how they could implement them in the City to earn revenue. Mr. Dickinson stated the turbines would need to be twenty feet above the tallest structure along with nothing around it and he wondered if anyone would want to do that to their property. The Council discussed the requirements and felt this was worth looking at using the Oakdale ordinance as a template and to bring this forward to the Planning Commission to review. © PROGRESS REPORT ON HUGHES INDUSTRIAL PARK AND INTERIM USES Mr. Neumeister stated this report provides a status update on code compliance of the businesses located in the Hughes Industrial Park. © Andover City Council Workshop Meeting Minutes —August 25, 2009 Page 7 Mr. Neumeister reviewed the information with the Council. Councilmember Jacobson asked why they are giving some of the businesses until 2012 to make the improvements. Mr. Dickinson stated that is what is allowed by the State. He stated the level of investments that would be required at this time would basically put them out of business. He stated that the violation is still valid and the Fire Department is aware of the situation so if something happens on the site they have identified the deficiencies but at the same time the State Fire Marshall's Office is cognizant that the buildings were built prior to many codes that have been put into place and to make a quantum leap is an extremely costly proposition. Staff reviewed with the Council the other violations and what has been corrected. PROGRESS REPORT /SINGLE TAMIL Y RESIDENTML RENTAL PROGRAM Mr. Newneister reviewed with the Council the progress report on the single - family residential rental © program. Councilmember Jacobson thought if they are going to send out a follow up letter they should send a nicely worded letter explaining what the City can do to help the owners who are renting these homes out. Councilmember Bukkila arrived at 7:55 p.m. Mayor Gamache thought the response was pretty good since he figured there were around 100 homes in the City that were rentals. Mr. Dickinson thought there was probably more than that, around 200, which in a City the size of Andover would be typical. Mr. Dickinson stated they still have not heard from six hundred people they sent letters to and he thought they should notch the letter up a little so the owner responds. The Council discussed possible wording along with information the City Attorney gave them in response of how to contact the owners. Mr. Dickinson suggested putting in the letter the following sentence "The ability to effectively collect rent and evict tenants is significantly inhibited when you do not have a rental license." The Council liked that sentence and thought it should be included in the letter. © Mr. Dickinson stated they will draft up a letter to send to the owners who have not responded and follow up with the Council on this at another workshop meeting. OTHER DISCUSSION Andover City Council Workshop Meeting Minutes —August 25, 2009 Page 8 Mr. Neumeister presented the Council with Great River Energy's landscape plan. The Council felt anything they do is an improvement. They suggested going to Connexus Energy to see about landscaping their area. 2 010-2 014 CAPITAL IMPROVEMENT PLAN PROGRESS REPORT Mr. Dickinson stated in early May Administration/Finance held a 2010 -2014 CIP kick -off meeting with Department Heads where discussion centered on the 2010 -2014 CIP development calendars and the need for other committees (Vehicle Purchasing & Facility Management Committees) and commissions (Parks and Recreation & Community Center Advisory) to start their work to meet the deadlines scheduled. Mr. Dickinson reviewed the information with the Council. Councilmember Trude thought in regard to the park and recreations operations, the play structures of $45,000 should be discussed with the Park Commission before the money is spent on new equipment. Mr. Dickinson stated they evaluate existing equipment based on deterioration. They also update the list indicating which parks will need to have improvements done. He noted they look at the parks every year. Mayor Gamache stated he likes how this is done currently because this becomes non political and based on needs for a park. Mr. Dickinson stated primarily the money is used for replacement of non- ADA compliant equipment in parks. Commissioner Butler stated Todd Haas comes before the Commission indicating what park equipment they intended on replacing and there has never been an issue with that. He stated they did cut back the annual miscellaneous park projects from $20,000 to $15,000. They put in $50,000 in 2011 for irrigation improvements. Commissioner Butler stated he is waiting for a response from staff on the revenue side of the park balance sheet, which brings them to a negative balance in the future. Mr. Dickinson stated the previous forecast sheet was a projection and the current one is the actual collected monies up to date. Councilmember Trude wondered how the Andover Station commercial park dedication fees were structured. Mr. Neumeister thought the City would receive the park dedication fees when a building is built and a lump sum was not paid for the entire area. Councilmember Trude asked for an update on Sophie's South Park. Mr. Dickinson reviewed what staff has reviewed as a possibility. He suggested they schedule in mowing a section of the park when they mow the trail. He stated they do not want to get more than half way into the park with mowing because that is where significant excavating needs to take place and will be costly to do. He would Q Andover City Council Workshop Meeting Minutes —August 25, 2009 Page 9 not recommend excavating at this time since the park is slated to be done when the parcels develop around it and he hated to put an investment out there that they will have to rip out. Councilmember Trude thought they should keep the park up since they are sending out violation letters to residents for not keeping up their property and thought they needed to keep up the park. Council concurrence was follow staffs proposal at Sophie's South Park until permanent improvements can be done. Mr. Dickinson stated the sewer trunk and sewer operations are doing very well, the water trunk and water operations are struggling and the reason for that is the development slow down. They had on the original forecast for the Water Treatment Plant one hundred homes being added annually which they have not had. Councilmember Trude asked if they are going to have to raise water rates beyond previous projections with the reclaimed tank addition being way over bid. Mr. Dickinson stated they will cut a future improvement back since some of the improvements they have scheduled are based on ® development and absent development they do not need the improvements. That is where they will pull back. Councilmember Trude wondered if they will have to raise storm water fees since they are doing a lot of localized projects now. Mr. Dickinson stated they are estimating that the City will raise the storm water utility cost. The Council recessed at 8:35 p.m. The Council reconvened at 8:40 p.m. 2010 BUDGET PROGRESS REPORT Mr. Dickinson reviewed the 2010 budget progress report and tax levy update with the Council. Councilmember Trude stated she is worried because whatever they do now to make cuts is going to be worse next year. Mr. Dickinson stated this is not going to be easy but they are looking at it from a two -year perspective right now. They are positioning themselves that the impact next year with the dollar amount of cuts is actually going to be more than it is this year and they will be better prepared. If they have any upside on the fee for service and new housing construction, things will be good from a budget perspective. © Councilmember Jacobson asked how much money they are saving by the reduction in hours of staff. Mr. Dickinson stated he will be covering this later on. General Fund Balance Analysis was reviewed with the Council. © Andover City Council Workshop Meeting Minutes —August 25, 2009 Page 10 Councilmember Knight explained he would like the City's employees to know how much the Council appreciates their being able to operate the City the way they are and deserve a lot of credit. Councilmember Trude thought in regard to the health insurance plan they should look at neighboring cities to combine the cities to form a consortium for more reasonable insurance. Mr. Dickinson stated the employees preferred to take the furlough a little at a time instead of all at once. Mr. Dickinson stated the furlough savings if maxed out would save them $52,500 until the end of 2009. For 2010 it would be $195,000 for the entire year but he put $163,000 into the budget since he did not expect to get it all. The savings for the layoffs in the current year does not save them anything because of severance, sick leave, vacation payout and unemployment payout. In 2010 the savings would be $140,000 after paying out unemployment, gross would be $198,000. Councilmember Trude asked if having the furlough is worth it and would it save them a lot in the Q budget. She thought it might be worth it to raise the tax levy by a little bit and recoup the money that way instead of putting this burden on the employees. She did not think the residents would mind paying $20 -$25 more a year. Mr. Dickinson indicated if they wanted to try to eliminate this they will have to go to about a 3.25% increase in the tax levy to make up for the monies saved. The Council discussed with staff the impact the furlough will have on employees looking to retire early. Mr. Dickinson stated his intention in producing a budget is trying to maintain a lean budget and understanding that levy increases are going to be limited at best, if at all and try and produce a plan that continues to provide the basic services. Councilmember Jacobson stated Mr. Dickinson is providing the Council with ideas on how to balance the budget and if the Council does not want to agree with him it is up to the Council to voice that. Councilmember Knight indicated this is the first year of the recession and they do not know whether this will go on for one or more years and will have a better handle on it next year as to where the Country is going. Councilmember Bukkila asked if Mr. Dickinson knew what the County is doing. Mr. Dickinson indicated they have indicated a zero percent increase. He stated he has gone to a few meetings over the last few weeks and it was identified by a number of communities they are looking at zero tax levy increase or minimal increase amounts. Councilmember Trude stated some of the other communities are lush in reserves so they do not have to levy anything. Mr. Dickinson stated there are other ways to possibly reduce the budget. He stated they could work on doing some debt service manipulation type of modifications but the City has never done that in the past. Andover City Council Workshop Meeting Minutes —August 25, 2009 Page 11 Councilmember Trude stated they have always had the attitude of real small increases and have never had a big jump and she was worried if they try and keep it too flat now what will happen in 2011 or 2012. Councilmember Knight stated theirs has always followed the COLA. Mr. Dickinson explained they have to declare the percentage of tax levy by September 1, 2009. He asked the Council what they wanted to have the tax levy set at. Councilmember Jacobson stated if they need to make a decision by September 1, 2009 he suggested setting the levy at 3.25% since they can always go lower which will give the Council and staff time to review and decide on a lower amount. Councilmember Knight stated they have to be aware of what other cities are doing. Mr. Dickinson explained to the Council what he would look at reducing as far as debt service items. The Council concurred to have staff work into some debt service fees and pushing them out a year or © two to keep the levy lower and balance the budget. Mr. Dickinson reviewed some things the City could do to move debt service around to make the budget work. Councilmember Trude hoped they do not have the furlough for next year or at least only through the first few months for employee morale. Mr. Dickinson stated if the goal is to stop the furlough at a certain time he would suggest to start to budget for it otherwise he would suggest they leave it the way it is and evaluate it in the future. Councilmember Bukkila thought at this point she would like to hold it at 2.48% as proposed by Mr. Dickinson and try to find ways to be creative. She did not think anyone liked the idea of a furlough and would like to see it end as soon as possible. Councilmember Knight stated he is in favor of the 2 plus percent but he would like to let the employees know that as soon as things look better they will be back to normal. They cannot put a date on it and right now they do not know what the recession will do but he would like to stop the furlough as soon as possible. Councilmember Jacobson stated his suggestion is to put the levy at the maximum and lower it as needed. Councilmember Trude stated she would only do this if they could get the employees off of furlough as soon as possible. Councilmembers' Bukkila and Knight stated they are comfortable with the 2.48% number. Councilmembers Jacobson, Trude and Mayor Gamache stated they would be comfortable with 3% for a levy number. Mr. Dickinson reviewed some of the cuts that he has made for the 2010 budget. He also reviewed Q Andover City Council Workshop Meeting Minutes —August 25, 2009 Page 12 the Parks Department budget with the Council. PREVIEW 2010 PRELIMINARY TAX LEVY The majority of the Council recommended setting the tax levy at a 3% increase with the indication to bring the levy down with other budget reductions. OTHER DISCUSSION Mr. Dickinson updated the Council on the situation with the Hockey Association and the proposed sheets of ice by the Water Treatment Plant. He discussed with the Council the problem with the lights not getting shut off at the parks by the Associations. Motion by Jacobson, Seconded by Knight, to adjourn. Motion carried unanimously. The meeting adjourned at 10:00 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary io