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HomeMy WebLinkAbout12-06-10-WS EN HILLS Approved: January 10, 2011 CITY OF ARDEN HILLS,MINNESOTA CITY COUNCIL WORK SESSION MEETING DECEMBER 6,2010 7:30 P.M. -ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Stan Harpstead called to order the City Council Work Session meeting at 7:30 p.m. _ Present: Mayor Stan Harpstead; Councilmembers David Grant, Brenda Holden, Fran Holmes, and David McClung. Absent: None. Also present: City Administrator Patrick Klaers; Director of Finance and Administrative Services Susan Iverson; Public Works Director Terry Maurer; Parks and Recreation Manager Michelle Olson; and Community Development Director Jill Hutmacher. APPROVAL OF AGENDA MOTION: Councilmember Grant moved and Councilmember Holden seconded a motion to approve the meeting auenda as presented. The motion carried unanimously„J5-0). 1. COUNCIL COMMENTS AND REQUESTS There was nothing at this time. 2. AGENDA ITEMS A. Presbyterian Homes Tax Increment Financing TIF) Stacie Kvilvang, Ehlers & Associates, presented the Council with TIF information on Presbyterian Homes. The redevelopment project was approved by the Council on November 29`h The TIF agreement is to be reviewed this evening and will come before the Council for final `h approval on December 13 ARDEN HILLS CITY COUNCIL WORK SESSION—DECEMBER b, 2010 2 2.A Presbyterian Homes TIF(continued) Ms. Kvilvang reviewed the term sheet and building phases with the Council. She indicated County Road D would be improved with this project. Councilmember Grant questioned if the County could make upgrades to the roadways as a result of this project. Ms. Kvilvang explained that the County could make changes, but it would not have to be funded through TIF. Mayor Harpstead requested that staff review this item further and report back to the Council. Councilmember Holmes asked if there would be a roadway or path to the lift station. Public Works Director Maurer explained a path would be constructed to the lift station and would be built in a manner to support vehicles. Ms. Kvilvang described the preliminary construction timelinc in detail. She noted there was a level of flexibility written into this plan with completion of Phase 1 estimated to be by December 31, 2013. Demolition of the current main building would occur after receiving a certificate of occupancy on Phase 1. Presbyterian Homes would then have six months to demolish the building and relocate the residents. Mayor Harpstead questioned if the demolition included clearing and cleaning the site from landscaping as well. Ms. Kvilvang stated the demolition plans only included the building to prepare for the next phase of development. Councilmember Holmes asked if Presbyterian Homes has submitted landscaping plans or if this would be done upon completion of all phases. Ms. Kvilvang explained there were landscaping plans within the development agreement that the Council approved last week. The plans were to have the landscaping phased throughout the development. Councilmember Holden requested that Presbyterian Homes not be allowed to clear cut the land until sites are scheduled for development. Councilmember Holmes suggested the City not be forced into paying the property taxes for the triangle property after the City's acquisition of the property and for Staff to investigate this issue further. She indicated Presbyterian Homes should pay the taxes in arrears. Mayor Harpstead questioned the total due in property taxes for 2010. ARDEN HILLS CITY COUNCIL WORK SESSION—DECEMBER 6, 2010 3 2.A Presbyterian Homes TIF(continued) Ms. Kvilvang noted $4,600 was due in 2010, but clarified the City would be responsible for only the second half 2012 taxes. She explained that all title issues would be resolved by Presbyterian = Homes when the properties are transferred. The Council requested Staff report back with further information on the"sliver property" description. Ms. Kvilvang indicated TIF notes would be financed for $1.115 million for the project at 6.25% interest. A default clause was written into the development agreement to protect the City. She _ explained the City can use up to 20% of the TIF funds for administrative and pooling costs. TIF would have to be utilized properly and could not be used for parks or trails. The funds could be used for roadway, sidewalk and sewer improvements. Staff would need comments from Council on how to proceed with the percentage of TIF requested. City Administrator Klaers explained that this project would provide the City with over $400,000 over a 14 year period for City improvements. He recommended the Council support _ spreading the funds over 14 years as this would give the City a larger amount of money to work with. Discussion ensued regarding the TIF interest rate and percentage requested by the City. Mayor Harpstead questioned when the Council would have to make a final decision. Ms. Kvilvang indicated these numbers would have to be included in the development agreement, which is to be approved on December 13�h. Councilmember Grant asked if conduit financing would be used. Ms. Kvilvang stated if Presbyterian Homes pursued conduit financing, the City would have to approve. She explained this would be a more expensive option, but has been done by Northwestern College. She indicated that the City could pursue conduit debt fees up front if the Council desired. Mayor Harpstead indicated there was more value to the City to pool money outside the district and take the funds up front. Councilmember Grant agreed but noted the City would have to make plans for these funds. Mayor Harpstead questioned whether these fund decisions would hinge on the needs of the City or if they should be disbursed over time. Councilmember Holmes asked if Presbyterian Homes had a preference regarding payment of conduit debt fees over time or as a lump sum up-front payment. She felt the Council did not have a preference at this time. ARDEN HILLS CITY COUNCIL WORK SESSION—DECEMBER 6, 2010 4 2.A Presbyterian Homes TIF(continued) Ms. Kvilvang was not aware of Presbyterian Homes' needs in this area. Councilmember Holden questioned if the bonds for this project would come through the City. Ms. Kvilvang explained Presbyterian Homes could not receive bonds through another City without approval from the Council. Councilmember Grant requested that references within the development agreement to "the City" be changed to "the City of Arden Hills". Mayor Harpstead indicated if the City had an immediate need, the funds up front would benefit the City,but otherwise, it could be paid over time. Ms. Kvilvang noted a $10,000 deposit has been to cover the City for administrative costs. A _ range has been estimated to be as high as $40,000 to develop the TIF district. Presbyterian Homes would be responsible for covering these expenses. She provided further information to the Council on the development district boundaries. The development district would establish where the City could spend TIF funds. Councilmember Holden was not in favor of a corporate or city-wide boundary as this would not meet the needs of the current residents. Mayor Harpstead suggested the boundary reach to Highway 96 and TH 10. Ms. Kvilvang stated this would be an acceptable boundary. Finance Director Iverson indicated if TCAAP were to develop the boundary could be amended. The Council was in favor of proceeding with a 14 year district. City Administrator Klaers noted Staff would draft the necessary documentation and a public hearing is scheduled for December 13'h. B. Mn/DOT I-694/51 Improvement Proiect Update Public Works Director Maurer indicated he has not yet received a formal letter from Mn/DOT regarding the I-694/51 improvements. He provided a brief update to the Council on the project. Staff has held three meetings with Mn/DOT representatives. He requested the Council provide comment on the needs for the noise wall. The noise wall was estimated to be $475,000 lump sum expense and would run 3,000 feet in Mn/DOT right-of-way. He cautioned that many trees would be removed to install the wall. ARDEN HILLS CITY COUNCIL WORK SESSION—DECEMBER 6, 2010 5 2.B Mn/DOT I-694151 Improvement Project Update (continued) Mayor Harpstead did not feel there were a lot of large oaks in this area. He felt it was appropriate for the Council to view the final plans submitted by Mn/DOT. He noted he would be in favor of proceeding with the noise wall. - Public Works Director Maurer stated he would need to present Mn/DOT with a final document and would have this on next week's agenda for the Council to review. If approved, this would inform Mn/DOT that the City was in favor of proceeding with the noise wall. Mayor Harpstead indicated he would be in favor of the City having an engineering review the Mn/DOT plans to provide further comments on the plans. Councilmember Holden questioned if the project would be combined with any other Mn/DOT projects. Public Works Director Maurer indicated he was not aware of this as Mn/DOT was slated to begin the project in August of 2011 with construction continuing through 2012-2013. Mayor Harpstead suggested the City speak with neighboring public works departments to review their proposed Mn/DOT schedules for this project. This would give the City a better picture of the regional timeline. Public Works Director Maurer asked if the other Councilmembers were in favor of the noise wall. Mayor Harpstead stated again that he was in favor of the noise wall. Councilmember Grant was in favor of the noise wall, but felt a special taxing district should fund at least part of the expense. Councilmember Holmes opposed the special taxing district. She indicated the noise wall did not prove to have a huge benefit and the expense may be too great for the City to assume. Councilmember McCIung supported the sound wall. Councilmember Holden was in favor of pursuing the noise wall, but felt a special taxing district or another funding mechanism should cover the expense. Mayor Harpstead cautioned the Council from denying the noise wall as this could devalue the property adjacent to the freeway. Public Works Director Maurer indicated Municipal State Aid funds could be used to cover the expense of the noise wall. Councilmember Grant was not in favor of this option. The City would then not have Municipal State Aid funds to fix the roads. ARDEN HILLS CITY COUNCIL WORK SESSION—DECEMBER 6, 2010 6 2.B Mn/DOT 1-694151 Improvement Project Update (continued) Councilmember McClung excused himself from the meeting at 8:55 p.m.. C. Staff Updates Facility Fees City Administrator Klaers presented the City Council with information on facility fees. Park and Recreation Director Olson stated that one of the goals suggested by Council for 2010 for the PTRC was to review and research the possibility of facility fees. The PTRC began researching and reviewing this topic in November. Before the PTRC continues this discussion, staff would like to ensure that the Council wants the PTRC. to analyze this issue and present a recommendation to the Council in early 2011. Councilmember Holmes questioned what uses we currently charged for. Park and Recreation Director Olson indicated that they only charge for adult softball game use. Councilmember Holden asked if the PTRC was in favor of pursuing the fees. Park and Recreation Director Olson stated the PTRC would continue their discussion after receiving direction from Council. She indicated another option to the fees would be a one-time donation to the City. Councilmember Holden questioned what the rates were for New Brighton for field use including lights, lines and grading. Park and Recreation Director Olson indicated New Brighton charged a field fee of$22.00 per hour for field lights. Mounds View had the lowest rate of$20 per field use. She suggested, if the City were to proceed with fees, that it be a field use fee and not an hourly rate. Staff estimated that $2,800 could be brought in from the associations if field use were billed, with another approximate $1,000 from other intramural uses. Councilmember Grant wanted to be assured that the fields would stay in good condition if the City was charging for their use. City Administrator Klaers indicated the fields would be in nice condition if the City had an additional $4,000 for maintenance, but also that expectations would increase. Councilmember Holden requested this issue return to the PTRC for further discussion. Councilmember Holmes agreed. Mayor Harpstead did not feel there was enough money gathered or value in charging fees as the fields were for public use. ARDEN HILLS CITY COUNCIL WORK SESSION—DECEMBER 6, 2010 7 2.C Staff Updates (continued) 2011 Pavement Management Program Public Works Director Maurer requested the Council discuss the possibility of working with the City of Roseville for the 2011 PMP Plan preparation and to hire an Auto-CAD technician from a consultant's staff to assist Roseville. This would assist the City in completing the projects planned for next year. The rates from consultants were reviewed and $65.00 per hour was the lowest. It is estimated that the total cost would be under $10,000. Direction was needed ftom the Council at this time. Mayor Harpstead was in favor of staff proceeding. The Councilmembers agreed. Union Contract City Administrator Klaers asked how the Council would like to be informed of the union contract negotiations. He noted he would be meeting with the union again on Friday. Councilmember Grant requested staff keep Council advised as to the issues and communicate the Council's wishes. Mayor Harpstead indicated the initial meeting was set to get the union's reaction and first comments, which was then brought back to the Council. The Council was in favor of proceeding as suggested. Miscellaneous City Administrator HIaers reviewed items planned for the December 13ffi and December 20cn meeting agendas. He indicated both could be very long meetings. Councilmember Holden stated she would like to discuss election signs at a future meeting. Perhaps a standard policy could be drafted to address this issue. City Administrator Klaers stated the Council would review the tobacco licenses next week. One license has failed compliance checks and was being fined $100 for the first offense and $500 for the second. A public hearing was scheduled for December 13'h to address this issue further. He explained a license could only be revoked after a fourth violation and could be suspended after a third. Councilmember Grant indicated this location has failed compliance checks in the past. City Administrator Klaers stated that the staff holiday potluck luncheon was scheduled for Thursday, December 10h. Mayor Harpstead indicated he would be in attendance. City Administrator Klaers questioned when the Council would like to hold the 2011 retreat. He stated this could be planned after the new Council comes on board. ARDEN HILLS CITY COUNCIL WORK SESSION—DECEMBER 6, 2010 8 2.0 Staff Updates (continued) Councilmember Grant was in favor of waiting until the new Council was on board. The Council agreed to wait. City Administrator Klaers questioned how the Council would like staff to proceed with holiday cards. Councilmember Grant felt this was a nice gesture for those who serve on committees and commissions. The Council was in agreement with this suggestion. 1. COUNCIL COMMENTS AND REQUESTS Councilmember Holmes requested the City work to bring residential rental units into compliance. There were a great number of homes being rented that were not on the City's rental list. Councilmember Holmes expressed concern with the dispatch system. City Administrator Klaers indicated he had investigated this issue and found that there was a great deal of turnover in the dispatch center which left new people trying to navigate assistance to the City. This was a concern that would be further addressed. ADJOURN Mayor Harpstead adjourned the City Council Work Session meeting at 9:28 p.m. Ak4 � Patrick Klaers David Grant City Administrator Mayor