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HomeMy WebLinkAboutWK - July 26, 2011C I VE T Y O F p ND 0 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 + (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV City Council Workshop Tuesday, July 26, 2011 Conference Rooms A & B 1. Call to Order— 6:00 p.m. 2. Discuss Livable Communities Program with Metropolitan Council - Planning 3. Anoka County Sheriff 2012 Budget Presentation -Administration 4. City Sanitary Sewer & Water Utilities Update —Public Works 5. 2011 Budget Implementation Progress & June 1011 Investment Report -Administration © 6. 2012 -2016 CIP Development Discussion/Update - Administration 7. 2012 Budget Development Discussion/Update - Administration 8. Other Topics 9. Adjournment x ND OVE X ANDOVER CITY COUNCIL WORKSHOP MEETING — JULY 26, 2011 MINUTES The Workshop Meeting of the Andover City Council was called to order by Mayor Mike Gamache, July 26, 2011, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councihnembers present: Sheri Bukkila, Don Jacobson, Mike Knight Councilmember absent: Julie Trude Also present: City Administrator, Jim Dickinson Community Development Director, Dave Carlberg Director of Public Works /City Engineer, Dave Berkowitz Others DISCUSS LIVABLE COMMUNITIES PROGRAM WITH METROPOLITAN COUNCIL Paul Burns, Manager of Livable Communities Program of the Metropolitan Council, shared a PowerPoint presentation with the Council that outlined benefits and participation requirements ofthe Livable Communities Program. Councilmember Jacobson asked if Andover is the only city currently not participating in the program. Mr. Bums stated that currently 94 other cities within the Metropolitan area have chosen to participate in this program, but there are others that have elected to not participate. Councilmember Jacobson asked how much money is available for programs. Mr. Burns stated there are approximately $9 million available throughout different funds to help get projects to a point for pre - development funding such as soil studies and other assessments. He said a city can request up to $1 million a year in project funding. Councilmember Jacobson asked if cities pay a Metropolitan Council property tax even if they don't participate in the Livable Communities Program. Mr. Burns said that is true and noted that with the fiscal disparities program all cities contribute to funding. Mayor Gamache reviewed the list of requirements and inquired if Andover already meets the criteria. Mr. Dickinson said Andover already meets or exceeds the requirements to participate. Mayor Gamache asked if by participating in the Livable Communities program does the Met Council have more influence on planning. He added if we already met the requirements would Met Council ask for more. Mr. Burns said he has been with the Met Council over three years and has seen no use of funding in that way. He added that funding is competitive though, so if a city meets or exceeds the requirement they could be more likely to receive funding depending on the competition. © Andover City Council Workshop Meeting Minutes — July 26, 2011 Page 2 Councilmember Knight asked for a definition of affordable housing. Mr. Burns said affordable housing is based on the area's median income figure established by the Department of Housing and Urban Development. He said that last year the Met Council changed from 80% for a home owner and 50% for a rental to 60% of area median income overall. Mr. Dickinson noted that area median income levels are based on address, as well as an individual's tax returns and other income data. Councilmember Bukkila asked for an example of a project that could qualify for funding. Mr. Dickinson said the Livable Communities program is not meant to finance an entire project, but rather be one of a supplemental revenue stream to fill a funding gap. Mr. Burns said if you were applying strictly for lower income housing this would work, but if you were trying to get a loan from us to buy up a key parcel the minimum criteria is that at least 20% of the future project would be affordable housing. He said for the Livable Community Demonstration there is no requirement for any affordable housing, but rather just for community development. The projects will likely be more dense than single family, such as a town center concept, so as to introduce higher quality housing in older developed areas and provide a better range of housing © options. Councilmember Jacobson said affordable housing seems to be a key theme for higher density, but he said our community doesn't have the transportation to support higher density or support the current character either. He asked what the benefits would be to participate. Mr. Burns noted the City already has a goal of providing affordable housing. Councilmember Jacobson agreed, but said we aren't tied to high density because of the map so what if we change our minds. Mr. Burns said if the City doesn't apply for grants then there is no issue. Mr. Carlberg noted they would have to update the Comprehensive Plan though if the current Comprehensive Plan guidance isn't followed. Councilmember Jacobson said that in setting the number of units we have to plan for is usually off, so why should we believe that the numbers for livable housing is accurate. Mr. Burns said they have assembled an assortment of projections using the best data available in order to set goals. He added they are about to come up with a new forecasting method and will be revising the projections in a couple years. Mayor Gamache asked for an explanation of Life Cycle Housing. Mr. Burns shared definitions of Affordable and Life Cycle Housing, stating it is a varied housing option that meets people's preferences for all stages of life, ranging from single family to assisted living. © Councilmember Jacobson asked if Section 8 figures in. Mr. Burns said Section 8 is related somewhat because some of the projects are funded through Minnesota Housing where people might apply for Section 8 vouchers. He added affordable housing does not mean subsidized housing. © Andover City Council Workshop Meeting Minutes — July 26, 2011 Page 3 Mayor Gamache said there are opportunities available that we can't get because we don't participate in this program and with the potential redevelopment coming up we should be ready. He added that taxpayers are already paying for this so we should try to benefit. Mr. Dickinson noted this is a voluntary participation and the City can withdraw at any time. Mr. Burns said he will get staff information on current rental rates and home ownership figures. Councilmember Knight asked why cities leave the program. Mr. Burns said there have been debates over other issues, but most were because they were small communities and didn't plan on applying for grants in the foreseeable future. Mr. Carlberg asked if a community had not applied for funds before would that application be reviewed more favorably compared to others. Mr. Burns said this is not an actual criteria but stated there are maximum amounts of award for Minneapolis and St. Paul and they have to make sure there is a pool of funds available for non -metro cites. He added they try to spread the funds out as much as possible, although there is no bias against small communities. © Council directed staff to review the process of participating in the Livable Communities Program, determine if there are real opportunities and bring back to the Council at a future meeting for further discussion. ANOKA COUNTYSHERIFF2012 BUDGETPRESENTATION Mr. Dickinson presented the 2012 budget for the Anoka County Sheriff's Department, then introduced Sheriff James Stuart and Chief Deputy Tom Wells. Mr. Dickinson noted the Sheriff services contract is the largest in the City at just over $2.6 million annually. Sheriff Stuart thanked the Council for the opportunity to discuss the budget. He reviewed current services, including patrol, forensics, adding they have provided contract service to the community since 1974. He thanked the Council for their responsible leadership in Andover, adding that during these difficult economic times everyone is evaluating all processes from the ground up, he wants to ensure the Sheriff's Office continues to be a good partner. He said the Sheriffs Office has made numerous staffing and operational level changes since January to better serve residents and be more efficient, noting that Andover has a solid level of patrol and strong partnership. Sheriff Stuart stated that challenges could include specific neighborhood challenges, such as crime prevention and/or investigations, and although we have developed a dedicated investigator for Andover they suggest having one more in order to meet the current level of service. Sheriff Stuart reviewed some contract options, including a status quo plan (Option A), an additional ® 20 hours /week crime prevention plan (Option B), and a half -time crime prevention staffperson with additional investigators (Option C). Councilmember Jacobson said the status quo option is $36,000 more, but if we elect to explore Andover City Council Workshop Meeting © Minutes —July 26, 2011 Page 4 community policing what would the charge be. Mr. Dickinson said the cost would be $78,728 or an additional $42,000 on top of the status quo option. Sheriff Stuart outlined Option B which would be a 40 hour week crime watch coordinator raising the contract from $24,326 to $48,650 per year for a new total of $2,581,575. Councilmember Jacobson asked what additional benefits would Option B bring. Sheriff Stuart said the crime watch coordinator would more actively be engaged in the City and would work with local neighborhoods on a variety of issues, including child safety seat clinics, bike helmets, crime watch and open house events. Councilmember Knight inquired about seat belt programs in schools. Sheriff Stuart said that is typically handled by the school liaison officers, as well as a partnership with Andover Fire on the mock crash. Councilmember Jacobson said our current crime rates keep the investigator busy and asked if it is more cost effective to provide a part-time or full -time assistant rather than an additional crime watch person. Sheriff Stuart outlined that possibility in Option C as a hybrid position full -time licensed © position who conducts part-time investigations as well as addressing "hot spots" in the City. He said it would be more of a community oriented investigator who would review patterns and trends as well as coordination. He said the person would work and partner with the Crime Prevention Coordinator, but still have arrest authority. Councilmember Knight said you can't place a financial figure on crime watch. Sheriff Stuart agreed, stating he is a firm believer in finding ways to break the generational cycle. Chief Deputy Wells said they can show the success of programs and how popular they are with the community, adding our calls for service may be down because of the calls to the current Crime Prevention Coordinator. He added over 1,500 people attended the community open house which shows great interest. Councilmember Jacobson asked if the current Crime Watch Coordinator would be assigned full time to Andover. Sheriff Stuart said he needs to allow her to be a resource in the County and would need to provide someone else too. Mayor Gamache asked if this hybrid position would cover the needs, but fall close to the outlined budget in Option C. Sheriff Stuart said this option would add $124,227 to the annual contract. Councilmember Bukkila suggested this person would be utilized more County-wide and may belong in the larger pool of services and that this is a service that should be available and paid for by all © municipalities. Councilmember Jacobson asked for specific costs and job descriptions for Council to review, adding it may be a little early to consider a hybrid position. Andover City Council Workshop Meeting © Minutes —July 26, 2011 Page 5 Mr. Dickinson said they could reallocate other dollars in the contract. He noted we currently utilize CSOs, but he does like the idea of another licensed peace officer on duty for visibility. Chief Deputy Wells said uniformed officers go from call to call and can't always follow up with neighbors, where this position could do some of that after identifying those trends, as well as tracking property through online sources such as Craigslist. Consensus was reached to consider offsetting costs by a reduction in CSO coverage. Staffwas asked to provide more information on the options for further consideration. Discussion was held on coverage between other cities. Councilmember Knight noted there is a value in presence and a uniform look. Sheriff Stuart said there would be no change in visible presence with the exception of longer waits for nuisance calls such as barking dogs and lock outs, although he believed the trade would be an improvement overall. Councilmember Knight asked if the liaison is done at the end of the school day. Sheriff Stuart said © they are, but added there are events after school as well. CITYSANITARYSEWER & WATER UTILITIES UPDATE Mr. Berkowitz provided an update relating to the Sanitary Sewer and Water Utilities Fund, adding the City is very prepared for any proposed expansions. He noted there is no real interest in sewer expansion in the north east part of the City through the East Bethel system, but this topic will be included in the next Metropolitan Council Comprehensive Plan update review. Mr. Berkowitz reviewed the Water Utilities Fund. Discussion was held on well rehab and State requirements for residential wells. Councilmember Jacobson inquired about the proposed new line to the west. Councilmember Bukkila requested neighborhood notifications for any well pumping. Mr. Berkowitz reviewed the Comprehensive Water System Plan. Councilmember Jacobson said we have to start considering how the property to the south of Coon Creek will be developed as it won't be as simple as installing water pipe. Mr. Dickinson asked how sewer could be provided in this area. Mr. Berkowitz said they have done an analysis and there is capacity in the lateral lines with just a lift station and extending the lateral lines, which would be paid for by the developer. © Mr. Berkowitz said the City has repainted Tower #1, but other long term improvements include a future two -well water treatment plant, and possibly another Water Plant and additional wells in the ruralreserve. Andover City Council Workshop Meeting © Minutes — July 26, 2011 Page 6 Mayor Gamache asked for an update on the South Cook Creek area. Mr. Berkowitz said they anticipate this area to begin in 2012, although they had hoped to be further along, progress is still being made. Mr. Dickinson said the City might have to contract out for the Millers Woods plat design from Gonyea Homes, the current work load for staff is at capacity. Councilmember Jacobson asked if the City received a concession to drill another well without a permit as part of the test well in Bunker Hills Park. Mr. Berkowitz said the arrangement was to obtain the appropriate permit for Well #9 and provide assistance to the County. Councilmember Jacobson confirmed we are pre- approved for another well. Mr. Berkowitz said that is correct. Mayor Gamache asked about the Annual Quality Report and offered some ideas for reducing the $6,400 cost. Mr. Dickinson said the report is paid for by the Utilities Fund, adding it is a mandatory Health Department requirement. Mr. Berkowitz added the report includes educational pieces outside of the Health Department requirements. 2011 BUDGET IMPLEMENTA TION PROGRESS & JUNE 2011 INVESTMENT REPORT © Mr. Dickinson provided an update on the 2011 budget implementation process and indicated it contains total revenues of $28,910,245 with expenditures of $30,785,805. The $1,875,560 of expenditures over revenues is largely due to prepaying debt in order to save on interest expenditures. The 2011 budget includes a total property tax levy of $10,856,299 which reflects a zero percent gross levy increase as compared to the 2010 budget. Mr. Dickinson reviewed collaborative opportunities, savings, certificates of deposit review, the investment process, bond ratings, real estate mortgage investment conduits, and government agencies. Councilmember Jacobson asked what the current yield is on money market funds. Mr. Dickinson said the current yield is less than one percent, with longer held investments at two percent or greater. Councilmember Jacobson asked what the $20 million overall portfolio will be used for. Mr. Dickinson said the funds will be used primarily for debt service. He explained we have about $3.5 million for general operating expenses plus money dedicated for utilities. He said that even at $20 million this is a low level as it used to be in the mid -$30 million. Mr. Dickinson said there is no excessive fund balance and while they are lean he is comfortable with the balance. Councilmember Knight asked what the appropriate cash -flow carry should be. Mr. Dickinson said the appropriate carry should be 40 -45 percent of annual expenses. He added the 2011 budgetary numbers are currently on target, but they will review some line items again in the next month. d 2012 -2016 CIP DEVELOPMENT DISCUSSION/ UPDATE Mr. Dickinson provided an update on the 2012 -2016 CIP, working with commissions, etc. There is a future meeting in August with the Park and Recreation Commission to discuss their proposed Andover City Council Workshop Meeting Minutes —July 26, 2011 Page 7 projects. Councilmember Jacobson inquired about roof replacements for $300,000. Mr. Dickinson said the roofs would be replaced at Fire Station #1, City Hall, and Public Works. Mr. Dickinson indicated some of the roofs could be delayed, they are reviewed annually. He noted City Hall should have been done last year and did not think it could be pushed out. Councilmember Bukkila asked that new projects be highlighted when added to the CIP. She inquired about the reasoning for irrigation in the neighborhood park in Woodland Estates. Mr. Ted Butler, Park Commission Chair said the Commission reviewed available funds and priorities for small parks and is suggesting that one -third acre or less would be the threshold for considering irrigation. Councilmember Bukkila mentioned this would include ongoing maintenance, and referred to Hickory Meadows and Sophie's Park. She suggested it was important to allot some money for irrigation then telling the residents to raise some of the money similar to other projects. Mr. Butler said this is a fair concern and could be addressed at the August worksession. © Mayor Gamache asked if other parks had been moved out of the CIP. Mr. Butler said no because they had thought we'd be in a deficit in the CIP, but after the EDA addressed the Andover Station North ballfields we have funds. He said the Park & Rec Commission is reviewing other parks like the parking lot at Sunshine Park. Mayor Gamache inquired about the $35,000 parking lot expansion? Mr. Butler said this would be used to pave the rest of the lot. Mr. Dickinson indicated this would be the parking lot on the parcel recently purchased from the Martinson. Mr. Dickinson said the most firm items in the CIP are equipment and larger items outside of parks, and while parks make up less than five percent of the total CIP they receive 85 percent of the discussion. Councilmember Jacobson inquired about the proposed ladder truck. Mr. Dickinson said the ladder truck was pushed out a year and would be reviewed again with the next year CIP. Mayor Gamache asked staffto provide information on how many other parks we irrigate for the next worksession. He then asked about intersection upgrades at Crosstown Boulevard and Crosstown Drive. Mr. Berkowitz said these upgrades are included in the proposed CIP, but noted staff is looking at additional funding for park replacement of $25,000 for expensive items like fencing. Mr. Dickinson said currently there are no new revenues projected in the trail fund. He said the Millers Woods development may be a possibility, but not a certainty, which is then reflected in park dedication funds projections. He then discussed MSA funds and maintenance allocation from the gas tax, as well as the tax levy of $1.1 million annually to maintain roads in the community. He said we are trying to maintain the adequate reserve balances so we don' have to bond for these projects. Andover City Council Workshop Meeting © Minutes —July 26, 2011 Page 8 Mr. Dickinson reviewed the water systems operation, noting staff has included a zero percent increase for the 2012 rates, adding though importance of being competitive with other communities particularly for connection fees. He also explained the Water Fund Cash balance and the process of the refunding water treatment bonds and how that cash balance will pay off debt service in 2012 of $7.6. Mr. Dickinson said his main concern for the Water Fund is the replacement reserve at zero. He said the rates are not covering future replacement and as a result the water utility will be reliant on debt financing. He said water systems are expensive and is a function of where we are at geographically, so we may have a utility that struggles. Mr. Dickinson said from an utility operations perspective we have a very lean fund balance in the water improvement fund. Mr. Dickinson stated the sewer fund is based on 8,358 users and that we should consider a 2012 rate increase, it has been zero for the past two years. He said the cash equivalent is a fairly good fund balance so operations are good. Mr. Dickinson said replacement funds are being set aside especially for lift station items and anticipated maintenance. He said the utility fund is healthy and could be the source of funds to loan if © needed to the water utility Mr. Dickinson outlined the storm water utility fund and that staff is proposing an increase because of rising costs to maintain the system. 2012 BUDGET DEVELOPMENT DISCUSSION/ UPDATE Mr. Dickinson provided an update on the 2012 budget development and referenced various deadline dates. He said the 2012 budget is a status quo budget with a commitment to a tax rate for long -term competiveness and sustainable revenue. He said Andover is seeing a decrease in total market value, but said this is not unique, in fact the decrease is less than other cities. He said we will receive no market value homestead credit (MVHC) in 2011, 2012, or 2013, which staff has budgeted for. Mayor Gamache said the League of Minnesota Cities said that MVHC will automatically raise the tax rate for cities. Mr. Dickinson commented the City is required to levy for it, but we will not receive the funds. Mr. Dickinson referred to Andover's fiscal goal of no less than a 40 percent General Fund reserve, which at a minimum in his opinion for 2012 should be 45 percent. He said the debt levy should be no more than 20 percent and for 2012 it will be around 17.5 percent. Mr. Dickinson indicated the current legislative session may have created more restrictions for the City to issue debt. © Councilmember Knight asked how we compare to other cities relative to debt. Mr. Dickinson stated most developing cities are above that rate, stating that while Andover is lean for debt we are currently not financing new improvements for development. Andover City Council Workshop Meeting Minutes —duly 26, 2011 Page 9 Mr. Dickinson referred to the fund balance which will increase approximately $120,000 in 2011. He said staff is holding the line on expenses as well as seeing revenues at goal or better. Councilmember Knight asked if the Sheriff s proposal is included in this request. Mr. Dickinson said the status quo plan, Option A, and the crime watch plan, Option B, are included. Mr. Dickinson said the 2012 general fund expenditures show an increase of 1.16 percent, noting that staffing levels are proposed to stay the same, but we continue to stress our service delivery. Mayor Gamache thanked the Fire Chief for the limited proposed .54 percent increase in the Fire budget. He asked why Recycling is up 3.53 percent. Mr. Dickinson said it is because of salary allocation changes. Councilmember Jacobson inquired about the 700 percent increase in Elections. Mr. Dickinson explained the increase is for hiring election judges in 2012, no election judges are budgeted for 2011. He said costs for the primary and general elections will be approximately $36,000, and will include no new equipment costs. © Mr. Dickinson noted the budget did not reflect the eliminated Public Works maintenance worker position. It does include the Community Development Director position. Discussion was held on Youth First and teen programming and that correlation to funding Community Education used to receive. Mr. Dickinson said they are working on collaborating with the YMCA and Youth First on teen programming, including a homework help area through Youth First. Mr. Dickinson said the budget includes staff step increases, but no cost of living increase. He added they are currently conducting a mid -year review of the health plan and they expect to see an increase in health insurance costs. He said staff will explore other options and stated that while a high increase is projected we are still in the middle compared to other cities for health insurance rates. Discussion was held on possible collaboration with Anoka County or even larger groups. OTHER TOPICS Mr. Dickinson distributed some options for discussion on how to fill the upcoming vacancy for Councilmember Jacobson upon retirement. Discussion included formally announcing the vacancy, advertising, and the interview process for appointment. Mayor Gamache said he felt it was important to have a full Council in place as they begin the 2012 budget discussions. He added that he would like to narrow the pool to two to three applicants based on the applications received. Mr. Dickinson stated the application questions should help determine who to interview. He said the appointment will be for one year until 2012 where they announce a special election with the next general election. Andover City Council Workshop Meeting Minutes — July 26, 2011 Page 10 Mayor Gamache suggested interviewing the week of August 29 and have the individual take office at the September 6 meeting. He added he would like the appointed person be allowed to run for office in 2012 should they choose. Mr. Dickinson said he will review the process with the City Attorney to confirm. ADJOURNMENT Motion by Councilmember Bukkila, Seconded by Councilmember Jacobson, to adjourn. Motion carried unanimously. The meeting adjourned at 9:05 p.m. Respectfully submitted, Cathy Sorensen, Recording Secretary H H