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HomeMy WebLinkAbout06-27-11-RENHILLS Approved: August 8, 2011 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING JUNE 27, 2011 7 :00 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor David Grant called to order the regular City Council meeting at 7:00 p.m. Present: Mayor David Grant; Councilmembers Fran Holmes, Brenda Holden, Ed Werner and Nicholas Tamble. Absent: None. Also present: City Administrator Patrick Klaers; City Attorney Jerry Filla; Director of Finance and Administrative Services Sue Iverson; Community Development Director Jill Hutmacher; City Planner Meagan Beekman; Public Works Director Terry Maurer; and Recording Secretary Tina Borg. PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA MOTION: Councilmember Holden moved and Councilmember Holmes seconded a motion to Approve the Agenda as presented. The motion carried unanimously (5 -0). 2. PUBLIC INQUIRIES/INFORMATIONAL A. 2010 Audit Presentation Mr. Aaron Neilson, Malloy, Montague, Karnowski, Radosevich & Co., PA (MMKR), stated the City's 2010 Financial Statements have been completed and submitted to both the State Auditor and the Government Finance Officers Association of the United States and Canada (GFOA). The auditors have issued an unqualified ( "clean ") opinion on the City's financial statements for the year ended December 31, 2010. The City has completed the report in the form prescribed by the GFOA for their Certificate of Achievement for Excellence in Financial Reporting. In order to qualify for this, the report has to be published in an easily readable and efficiently organized Comprehensive Annual Financial Report (CAFR) that satisfies both accounting principles generally accepted in the United States of America and applicable legal requirements. The ARDEN HILLS CITY COUNCIL — June 27, 2011 2 2.A. 2010 Audit Presentation (continued) Audit Standards are constantly increasing and changing. With these changes there are increased findings. This does not mean that the City has done anything wrong compared to previous years, only that the reporting requirements have become stricter. Many cities are experiencing these findings, and the findings are expected to increase for all cities as these standards become stricter. The City continues to have the finding related to "Segregation of Duties." The "Segregation of Duties" finding is common to organizations the same size as Arden Hills. Staff continues to review and make improvements to its internal control structure on an ongoing basis and attempts to maximize the segregation of duties in all areas within the limits of the Staff available. The City received a finding for not having enough pledged collateral with an investment at Affinity Plus Federal Credit Union. This was due to a number of staff changes at Affinity Plus as the pledged collateral note expired and new pledged collateral was not in place before December 31, 2010. This has been corrected and the new pledged collateral has been set to run with the term of the investment. Councilmember Holden asked if the recycling fund included the Score Grant the City received. Director of Finance and Administrative Services Sue Iverson stated the grant was included in the recycling fund. She also stated the finding with Affinity Plus had been corrected and the pledged collateral is set to expire with the City's investment. B. TCAAP & Stadium Proposal Update Community Development Director Jill Hutmacher stated Staff has been in contact with Ramsey County Staff regarding local financial issues and possible new legislation. All parties are waiting to see when a special legislative session will be called and whether stadium legislation will be addressed during a special session. Councilmember Holden stated she had met with Ramsey County Officials to get additional information on what was happening with the stadium proposal and she encouraged others to do the same. PUBLIC Mayor Grant opened the Public Inquiries /Informational at 7:16 p.m. Mr. Gregg Larson, 3377 North Snelling Avenue, Arden Hills, thanked the City Council for putting the March letter on the website. He feels this document was kept a secret from the residents and it is in direct contrast with the newsletter article that was printed in the Arden Hills Notes. This article stated the City does not have an official position on the stadium. There is a petition against the stadium being on the TCAAP property and it has been signed by 135 Arden Hills residents. He stated that he continues to have concerns about the City Council's lack of communication with the residents regarding the Vikings Stadium proposal and stated it is the job of the Mayor to communicate with residents. ARDEN HILLS CITY COUNCIL — June 27, 2011 2. Public (continued) Councilmember Holden stated the letter that Mr. Larson is calling "the secret document" is a letter that was generated by Staff as part of its due diligence for this project proposal. Staff does due diligence for many proposals and projects in the City each year and not all the letters for these projects are put on the City's website. City Administrator Patrick Klaers stated that on February 28 the City Council passed a resolution in response to the action of the Ramsey County Board. This City resolution directed Staff to do its due diligence for the stadium proposal and this work included a letter, which outlined the City's concerns with the proposal. The letter was not deliberately withheld from the public and when it was pointed out that it was not on the website it was posted right away. The letter was not in support of the stadium but rather in support of legislation that continued the dialogue and discussion of the stadium. Mayor Grant stated the City is working to put together an information session for the public in mid -July. The issues with the stadium are changing quickly and Staff wants to be sure to include as much information as possible. There are a number of things that must happen before a stadium can happen in Arden Hills and, with the legislature being out of session, it is not likely these things will happen at this time. He clarified that the picture in the Arden Hills Notes article was only a concept drawing and not the actual proposal. At this time there is nothing definite regarding the location of a stadium on the property. Mayor Grant closed the Public Inquiries /Informational at 7:27 p.m. 3. APPROVAL OF MINUTES A. June 1, 2011, Regular City Council Meeting MOTION: Councilmember Holden moved and Councilmember Holmes seconded a motion to Approve the June 1, 2011, Regular City Council Meeting minutes as presented. The motion carried unanimously (5 -0). 4. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item — Claims and Payroll. B. Motion to Approve Ordinance 2011 -006 in Planning Case 11 -010 to Amend Section 1325.01 Subd. 3 of the Zoning Code to Permit the Construction of Detached Garages in the Front Yards of Lakeshore Lots Under Certain Circumstances as Presented in the June 27, 2011, Report to the City Council. C. Motion to Accept the City of Arden Hills 2010 Financial Statements and Audit Reports as Presented. D. Motion to Accept the 2011 First Quarter Financial Reports as Presented. E. Motion to Authorize a Reduction in the 2010 PMP Special Assessments Against PIDs 21.3 0.23.44.0012, 21.3 0.23.44.0010, 21.3 0.23.43.007, 21.3 0.23.44.0011, and 21.30.23.43.005 in the Amount of $2,768.46 each. Motion to Adopt Resolution 2011-035; A Resolution Relating to Special Assessments for the 2010 Pavement Management Program. ARDEN HILLS CITY COUNCIL — June 27, 2011 4 4. Consent Calendar (continued) F. Motion to Approve Change Order #1 and Payment #1 to Natural Shore Technologies, Inc. of Maple Plain, Minnesota, in the Amount of $14,743.24 for the Indian Oaks Court Pond Shoreline Restoration and Landscaping Project. G. Motion to Approve the Maintenance Agreement for Stormwater Management Facilities Between Rice Creek Watershed District and the City of Arden Hills for the 2011 Pavement Management Program. H. Motion to Accept Cost -Share Funds From the Rice Creek Watershed District and Approve the Cost -Share Agreement for Stormwater Improvements in the 2011 Pavement Management Program. I. Motion to Approve Resolution 2011-033; Extending the Fire Protection Service Contract Between the City of Arden Hills and the Lake Johanna Fire Department. J. Motion to Award the Indian Oaks Court Storm Sewer Repair to CW Houle, Inc. of Shoreview, Minnesota in the Amount of $12,982.00. MOTION: Councilmember Holmes moved and Councilmember Tamble seconded a motion to approve the Consent Calendar as presented and to authorize execution of all necessary documents contained therein. The motion carried unanimously (5 -0). 5. PULLED CONSENT ITEMS None. 6. PUBLIC HEARINGS None. 7. NEW BUSINESS A. Planning Case 11 -011— Select Senior Living PUD & Plat City Planner Meagan Beekman stated Select Senior Living is requesting a Zoning Code Amendment, Preliminary and Final Plat, and Master and Final PUD to allow the reuse of the existing building at 1201 County Road E as an assisted senior housing facility. The applicants are proposing to convert the existing hotel into 150 units of senior living, which would include approximately 14 independent living units, 106 assisted living units, and 30 memory care units. As part of their application, Select Senior Housing is proposing significant site improvements including removing a large portion of the existing parking lot and front drive aisle and converting it to landscaped area; constructing a patio area and walkways; and installing storm water ponding, curb and gutter, and landscaping around the property. In addition to the site improvements, the applicants are proposing to paint the exterior Exterior Insulation Finishing System (EIFS) and roof, add architectural accents to the building, and upgrade the internal fire suppression system and elevators. Presently, the Zoning Code does not identify assisted living as a permitted or conditional use within the B -2 District. In order to accommodate the applicant's request to allow the senior housing facility at the proposed site, an amendment to the City's Zoning Code would be ARDEN HILLS CITY COUNCIL — June 27, 2011 5 7.A. Planning Case 11 -011— Select Senior Living PUD & Plat (continued) required. The proposed amendment would permit assisted living as a permitted use but the applicants would be required to get an approved Master and Final PUD in order to operate in the B -2 District. TAT Properties is also proposing to subdivide the property into two parcels, reserving the eastern two acres of the site for a future development option that has yet to be determined. In order to accommodate the request for the subdivision, and bring the property into compliance with the City's zoning regulations, the storm water ponding and landscaped area would be shared by the two parcels. The project, as proposed, meets all of the requirements of the City's Zoning Code, and substantially conforms to the City's design standards for the B -2 District. TAT Properties is requesting the park dedication fee of $133,350 be waived and added to Lot 2's proportional share of the County Road E streetscape improvements, to be levied at the time the improvements are implemented. Staff is requesting direction from the Council on collecting the cash payment for the park dedication fee or waiving this and adding it to a future assessment. She stated Recommendation 17 should be changed to read: The applicant shall install a sewer grinder, if required by the Public Works Director, on Lot 1 or at such time it is determined by the City that one is necessary. Councilmember Holden asked if there would be a maintenance agreement in place for the grinder when it is installed so the City will not be responsible for the maintenance. Public Works Director Terry Maurer stated if the equipment is required then it will be installed as part of the building service and not part of the City's sewer system like the grinder used by Presbyterian Homes. He stated the Staff would ensure that the equipment is maintained properly. Mayor Grant asked what the cost would be for a grinder and installation. He asked what lift station this facility would use. Public Works Director stated Staff had not received this information in time for the meeting but was currently working on getting this information for the developer. He stated he was not sure which lift station would be used by this facility but it may be the Ingerson Lift Station. Councilmember Holden asked if the corner where the gateway feature would be located would be a City easement and if this gateway feature had been addressed in the recommendations or in the development agreement. City Planner Beekman stated the type of gateway feature that will be in this location has not been determined yet so an easement may not be necessary based on the size of the feature. The gateway feature is addressed in the recommendations of approval for the project. Councilmember Holden asked if there was a sign plan at this time. City Planner Beekman stated the sign plan is included and there will be one monument sign and no signs on the building. Mayor Grant stated the corner of Lot 2 was dedicated green space. He asked how the proposal would meet this dedicated green space requirement. ARDEN HILLS CITY COUNCIL — June 27, 2011 6 7.A. Planning Case 11-011 — Select Senior Living PUD & Plat (continued) City Planner Beekman stated when the Holiday Inn was constructed, the corner was used to meet the green space requirements of the City at that time. This is not dedicated green space. The redevelopment of the property will meet the green space requirements by adding green space to other areas of the property and reducing the amount of green space in this location. Councilmember Werner asked for clarification on the "pork chop" that was being added to the eastern access point of the property. City Planner Beekman stated a "pork chop" is a piece of concrete that is added to an access point that will force traffic to go a certain direction and separate incoming and outgoing traffic. In this proposal the "pork chop" is being used to force traffic to take a right into the property. Councilmember Holmes asked if the western access point for the property would be designated for employee access. City Planner Beekman stated employees of the facility would use the western access point and the middle access point would be used for drop-off and pick-up of residents. The middle access point will generate fewer trips per day. She clarified the direction of the traffic movement for pick-up and drop-off of residents is reversed from what would normally be expected but this direction will benefit the traffic flow. The developer has agreed to this change in the direction of the pick-up and drop-off area. Councilmember Holmes asked for clarification regarding the sidewalks along County Road E and Lexington Avenue and when these would be constructed. City Planner Beekman stated there are no sidewalks in front of the facility along County Road E currently. As part of Phase I the developer will construct a 6-foot wide ADA-compliant sidewalk along County Road E. The applicant has requested an extension of one year to construct the sidewalk along Lexington Avenue up to the railroad tracks. There are trees 13 feet from the curb along County Road E and the sidewalk will be located between the trees and the curb. Councilmember Holden asked what would happen to the green space area on the west side of the property. She asked if there would be improvements to this area. City Planner Beekman stated the curb will be repaired and the driveway connections will be removed. The boulevard will be extended and the existing trees will be maintained. Mayor Grant asked what improvements would be made on the McGuire's side of the facility. City Planner Beekman stated this area is primarily EIFS and would be painted to match the rest of the building. Councilmember Holmes asked for clarification on the park dedication fee and the request to have this fee waived. ARDEN HILLS CITY COUNCIL — June 27, 2011 7 7.A. Planning Case 11 -011— Select Senior Living PUD & Plat (continued) City Planner Beekman stated based on the Code, park dedication can be in the form of a percentage of land dedicated to the City, or as cash in lieu of a dedication. The cash payment for the park dedication for this project would be $133,350. This amount would need to be paid in cash prior to the execution of the Final Plat, unless the developer enters into an agreement for a payment plan. Cash payments in lieu of park dedication can only be used towards the construction of new recreation facilities and cannot be used to maintain existing facilities. The benefit of cash park dedication to the City is that it provides dedicated dollars for park or trail development. The developer has suggested that the City waive park dedication, and as part of the approval of the preliminary and final plat, the developer would give the City, through a future assessment against Lot 2, an amount of $133,350 over and above any other assessments related to the implementation of the streetscape improvements for the B -2 District. It is anticipated that the City will assess a portion of the streetscape improvements related to the Guiding Plan for the B -2 District against the benefiting property owners. The owner of Lot 2 would agree to these assessments, plus an additional $133,350 towards the project. The benefit to the City in this arrangement would be the ability to use these funds toward accomplishing the streetscape improvements along County Road E. Councilmember Holden asked if this amount could be assessed before the project was done or if it would have to be assessed after the completion of the streetscape project. City Planner Beekman stated the City has not developed a plan for assessing the streetscape project but it may be similar to the process used for assessing the City's Pavement Management Projects. These assessments are not done until after the project costs have been determined. There are not many opportunities for the City to collect park dedication fees and the Parks and Recreation Department is in favor of collecting the park dedication fee. Councilmember Holden stated she would like to have the wording for this assessment to be changed so that half of the amount can be assessed at a time rather than all at once, if the streetscape project were done in phases. Mayor Grant stated he would be in favor of the City collecting the amount now rather than assessing the amount at a later time. The Parks and Recreation Department could use these funds for trail development now. Councilmember Tamble asked what percent of the funds budgeted for the streetscape project would the $133,350 make. Mayor Grant stated the $133,350 would likely be less than 10% of the total amount spent on the streetscape project. He stated the Parks Fund has a negative balance at this time and the funds could be used to offset this. Director of Finance and Administrative Services Iverson stated the Parks Fund has a negative balance at this time and the City will need to transfer money from the PIR Fund to make up the ARDEN HILLS CITY COUNCIL — June 27, 2011 8 7.A. Planning Case 11-011 — Select Senior Living PUD & Plat (continued) balance. She also stated that park dedication fees could only be used for capital improvements to the City's parks and trails. Councilmember Holmes stated the proposal does not cover any of the other amenities that may be included in the project such as a community center, restaurant, or banquet center. She asked if these things would be included in the project at this time. City Planner Beekman explained the project being proposed, as part of this PUD, does not include a community center, banquet hall, or restaurant. If these uses are added later then the applicant will need to request a PUD amendment from the City. The PUD will include the internal improvements that would be used by the residents of the facility and if the facility invites others to utilize the pool for therapy purposes. If the applicant were to rent the pool to a third party then this would require a PUD amendment but they would be able to invite others to utilize their facilities. Councilmember Holden asked who was responsible for paying the costs to have the sidewalks constructed. City Planner Beekman stated the applicant is responsible for the construction and costs of the sidewalks. Councilmember Holden asked if the applicant had any design improvements planned for the east side of the building. City Planner Beekman stated this side of the building is brick and there are no plans for changes or improvements to this side of the building. Mayor Grant encouraged the applicant to look at continuing the designs from the front of the building around the corner to the east side of the building. This would soften the effects of the large brick wall. Councilmember Holden stated there is a wrought iron fence with landscaping between the pick- up and drop -off area and the road. She asked if this feature could be extended for the short distance on the west side of the access point. City Planner Beekman stated the fence could be added in this location. Mayor Grant asked Select Senior Living what level of care the residents were expected to need. He also asked if this would be considered assisted living or if it would be considered a nursing home. Mr. Joel Larson, Select Senior Living, stated this facility is an assisted living facility with 106 assisted living units, 30 memory care units, and 14 independent living units. The independent living units will generate more traffic than the other types of units because these residents are ARDEN HILLS CITY COUNCIL — June 27, 2011 7.A. Planning Case 11 -011— Select Senior Living PUD & Plat (continued) independent. This would not be a nursing home or skilled care facility even though there will be nursing staff. Mayor Grant asked what uses were planned for the large portion of the building on the west side. Mr. Larson stated this area was still being designed. There will be a main street going into this area with small shops and a bank the residents could use. This will not take the whole area of the building and Select Senior Living will come back to the City for approvals once the remaining area has been designed. Mayor Grant stated this was a large area and he would not be opposed to having some public use of this space. He stated the traffic study had indicated the "pork chop" and the right in could accommodate the traffic for Lot 2. He asked if any consideration had been given to the traffic generated by the bank and chapel that would be part of the proposal. Mr. Larson stated the bank and chapel are intended for the residents' use and are not intended to be used by the public. Mayor Grant stated Select Senior Living had mentioned they may be looking into inviting the public to activities such as water aerobics. He asked if this had been considered in the traffic study. Mr. Steve Manhart, Traffic Engineer for RLK Inc., stated the traffic study did not take into account any activities on the western portion of the property except those trips that would be generated by the residents of the facility and its employees. The analysis used the trips generated during the morning and afternoon peak hours and combined the assisted living traffic. The analysis looked at these numbers separately as well and estimated traffic generated by a variety of potential uses for Lot 2. City Planner Beekman stated the traffic study presented the worst -case scenarios for traffic based on the potential uses for Lot 2. The design standards for the B -2 District restrict having two businesses with drive -up windows within a quarter mile of one another. Mayor Grant asked what improvements were planned for the sides of the building that have not been shown in the representations presented. Mr. Larson stated the EIFS and banding would be painted coordinating colors to change the look of the building. Councilmember Holden asked if anything could be added to the east side of the building to improve the look of the large brick wall. ARDEN HILLS CITY COUNCIL — June 27, 2011 10 7.A. Planning Case 11 -011— Select Senior Living PUD & Plat (continued) Mr. Larson stated ornamental iron pieces could be added to this side of the building that are similar to the pieces on the front of the building. He stated there would be windows added to the back of the building, on the western side, where there would be offices added. Councilmember Holden asked why samples of the materials were not included in the presentation for the Council to consider. City Planner Beekman stated the design standards for the B -2 District that were implemented apply to new construction only. The design standards would apply to the construction of a building on Lot 2 and construction materials would be presented to the Council for consideration when the development of Lot 2 moves forward. Mayor Grant stated the Council could request to see these materials because the City had until July 24 to make a decision on this project. The City also has the option to request a 60 -day extension. City Planner Beekman stated the Development Agreement has not been finalized and this will be brought back to the Council for approval on the final language. Councilmember Holden asked what kind of lighting there would be on the property. Mr. Larson stated the existing lighting on the building would be updated and in working order. There would be shrub lighting added to the front of the building to accent the shrubs and the parking lot lights would be in working condition as well. The lighting for the shrubs in the front of the building is meant to be accent lighting only. There is no lighting planned for the northwest corner of the property at this time because this area is used as proof of parking. If parking is added to this area then the appropriate lighting will be added. Councilmember Holmes agreed that accent pieces should to be added to the east side of the building to enhance its look. Mr. Rob Davidson, TAT Properties, stated the east side of this building is made of quality brick and there will be a quality user for Lot 2. Once Lot 2 is developed this will be the visual impact the City is looking for. Mayor Grant stated there is not a development proposal for Lot 2 at this time and the Council would like to be sure the visual impact of what is being presented is what the City wants. Councilmember Holmes asked how ambulances would access the property. Mr. Larson stated ambulances would access the property from the pick -up and drop -off area. This will be the fastest and it has been reviewed to be sure there is adequate room for emergency vehicles. ARDEN HILLS CITY COUNCIL — June 27, 2011 11 7.A. Planning Case 11 -011— Select Senior Living PUD & Plat (continued) City Planner Beekman stated the Fire Department has looked at the site and proposal and the appropriate changes have been made to the plan and they have signed off on it. Councilmember Werner asked how many employees would be at the facility. Mr. Larson stated there would be approximately 35 employees total with 25 of these employees being on the first and second shifts. Mayor Grant clarified the items the Council needed to resolve included the lighting and lighting plan, the need for a sewer grinder, the issue of the park dedication fee and the accenting for the east wall of the building. He stated he would like to see a grinder installed in the facility right away. Councilmember Holden stated the proposed Zoning Code amendment allows for assisted living and nursing homes. She asked if this facility would change from an assisted living facility to a nursing home and how the Council could prevent this from occurring. She would like to see this facility stay an assisted living facility because these residents would have more interaction with the community and surrounding businesses. City Planner Beekman stated nursing homes could be removed from the proposed Zoning Code amendment and just permit assisted living facilities under the restrictions outlined in the changes. She stated the Council could also restrict the number of units the facility has for memory care. Mr. Larson stated Select Senior Living had no intentions of becoming a nursing home. There may be a need to change the number of assisted care units and memory care units slightly, based on the needs of the residents. Councilmember Holden asked if "nursing homes" could be removed from the ordinance amendment and the number of memory care units at the facility could be limited to an amount less than 50 %. City Planner Beekman stated the City could create caps on the number of memory care units within the development agreement based on a percentage of the total units. City Attorney Jerry Filla stated the City Council could lessen the intensity of the ordinance changes because the public hearing has already been held based on what is being presented at this time. The City Council could not increase the ordinance unless another public hearing was held. He stated he would take the guidance of the Council on the maximum percentage of memory care units they would like to have in the development agreement. MOTION: Councilmember Holden moved and Mayor Grant seconded a motion to approve Ordinance 2011 -007 amending the Zoning Code to Allow Assisted Living as a Permitted Use within the B -2 District With An Approved Planned Unit Development Based on the Findings of Fact in the June 27, 2011, Memo ARDEN HILLS CITY COUNCIL — June 27, 2011 12 7.A. Planning Case 11 -011— Select Senior Living PUD & Plat (continued) to the City Council and Remove Nursing Homes as a Permitted Use in the B -2 District. The motion carried unanimously (5 -0). MOTION: Councilmember Holden moved and Councilmember Holmes seconded a motion to Approve the Publication of a Summary of Ordinance 2011 -007. The motion carried unanimously (5 -0). MOTION: Councilmember Holden moved and Councilmember Holmes seconded a motion to Approve Planning Case 11 -011 for a Preliminary and Final Plat and Master and Final PUD to Subdivide the Property at 1201 County Road E Into Two Parcels and Reuse the Existing Building As Assisted Senior Housing, Based on the Findings of Fact and Submitted Plans, Subject to the Conditions in the June 27, 2011, Report to the City Council. MOTION: Councilmember Holden moved and Councilmember Werner seconded a motion to Add Recommendation 27 to require the Addition of Decorative Wrought Iron or other Decorative Architectural Treatments to the East Side of the Building as Approved by Staff. The motion carried unanimously (5 -0). Mayor Grant stated he would like to have the City receive the park dedication fee rather than waive this amount and assess it at a later date. Councilmember Tamble stated it would be beneficial for the City to receive these funds as part of the park dedication fee rather than having them assessed at a future date that has not been determined. Councilmember Holden stated assessing this fee is a perfect opportunity for the City to gain seed money for the B -2 streetscape project. She would like to see the City start moving on this project and these funds could be a good way to get this project going. City Attorney Filla stated the City will need to be sure the developer agrees to the method the City would like to use for this fee. This will need to be included in the development agreement and if the amount is to be assessed a date will need to be included. If the City decides to move forward with an assessment then it will need to be recorded against the property because there is no defined user for this property at this time. Mayor Grant stated the applicant is not opposed to having the amount of the park dedication fee assessed at a future date. He suggested the City collect the park dedication fee for the Park Improvement Fund and then budget this same amount for a new fund for the B -2 District streetscape project. A new fund could be created to accomplish this. Councilmember Tamble stated if the park dedication fee is collected at this time then the Park Improvement Fund will be less in the deficit. ARDEN HILLS CITY COUNCIL — June 27, 2011 13 7.A. Planning Case 11-011 — Select Senior Living PUD & Plat (continued) Councilmember Werner stated the park dedication fee should be collected for the Park Improvement Fund since this account is in the negative. Councilmember Holmes stated the idea of having money available for the B -2 District streetscape project was appealing. Mayor Grant stated a final decision did not need to be made at this time. Mr. Davidson stated he had requested the alternative method in lieu of the park dedication to delay the payment until the B -2 District had been developed further. His thought was this money could be used to develop the City's monument or gateway on the corner of the property. This could provide a more signature feature for this corner. He stated the fees would be assessed against Lot 2 of the property. Mayor Grant stated the City will have to transfer money either to the Park Improvement Fund or it could transfer this amount to a separate fund for the B -2 District streetscape project. Councilmember Holden stated the City may not use these funds for the corner only and does not want to be restricted to this use. City Administrator Klaers stated it would be cleaner if the City collected the park dedication fee as the Code is written. Councilmember Holmes suggested the Council not finalize this element of the development agreement at this time. Mayor Grant stated the issue of the sewer grinder should be resolved. There have been problems in the past with Presbyterian Homes and sewer backups. He does not want this same situation to occur and would like to have the sewer grinder installed before the building is occupied. Councilmember Holmes asked how this recommendation had been previously changed. City Planner Beekman stated the recommendation was changed to allow the Public Works Director flexibility in further negotiations with the developer regarding the installation of the sewer grinder and to review the cost benefit analysis. Public Works Director Maurer stated the developer had requested costs for this item and he had not received this information prior to the Council meeting. He is expecting this information before the end of the week. The developer would like to know what the costs and options are for installation before he agrees to have this done. At this time the City is assuming that a sewer grinder is needed and this is why it is being recommended. City Attorney Filla stated this could be further discussed with the development agreement. ARDEN HILLS CITY COUNCIL — June 27, 2011 14 7.A. Planning Case 11 -011— Select Senior Living PUD & Plat (continued) Mayor Grant stated if a sewer grinder is needed then it should be installed before the facility is occupied. Councilmember Holden agreed that a sewer grinder should be installed before the facility is occupied to ensure problems do not occur with the sewer. Public Works Director Maurer stated he believed a grinder would be necessary as well but the developer would like to have a cost estimate for this prior to agreeing to have it installed. Mayor Grant stated this could be further discussed when the development agreement is finalized. Councilmember Holden stated she would like to add Recommendation 28 to ensure parking lot lighting is provided if the proof of parking is constructed. She asked if there was lighting on the east side of the building at this time. Mr. Larson stated he did not recall if there currently was lighting on the east side of the building but if there was he would be sure to have it updated and working properly. Councilmember Holden stated she would like to have the maximum set for memory care units as part of the recommendations for approval. City Planner Beekman stated the current amount of 30 memory care units is approximately 20% of the total number of units available. Councilmember Holmes suggested setting a maximum number of units at 25% or 37 units. Councilmember Tamble stated he would be agreeable up to a maximum of 30 %. Mr. Larson stated a room or unit needed to be a specific size in order to be used as a memory care unit and he did not see this facility going over 30 units but they would like to have some flexibility for special circumstances that may arise including married couples. Councilmember Grant stated he would agree to a maximum of 25% memory care units. Councilmember Holden stated she would like to have Recommendation 29 set the maximum number of memory care units for this facility at 25% of the 150 units available. Councilmember Holmes stated the west entrance should be designated as an employee entrance so that employees are not parking in the front of the building. Councilmember Holden stated the facility management would watch this because this was an area designated where residents would be picked -up and dropped -off. She stated she would like to have more landscaping done on the west side of the building between the driveway and the other ARDEN HILLS CITY COUNCIL — June 27, 2011 15 7.A. Planning Case 11 -011— Select Senior Living PUD & Plat (continued) existing building. She suggested a couple of trees or shrubs would make the area look more complete and finished. Mr. Larson stated he would talk with the neighboring business on that side, and with City Staff, and determine what could be done in this area. Councilmember Holmes stated she would like to add Recommendation 30 to include additional landscaping on the west side of the building as approved by Staff. Councilmember Holden asked if the screening in the front parking area should include all of the parking areas in the front of the building. City Planner Beekman stated all of the front parking could be included. MOTION: Councilmember Holmes moved and Mayor Grant seconded a motion to Amend Recommendation 19 to change the word "fence" to "fences" to Include the Second Shorter Fence to Screen the Other Parking Spaces in the Front of the Building. The motion carried unanimously (5 -0). MOTION: Councilmember Holmes moved and Mayor Grant seconded a motion to Add the Following Recommendations: 28 to ensure parking lot lighting is provided if the proof of parking is constructed; 29 setting the maximum number of memory care units for this facility at 25% of the 150 units available; and 30 provide additional landscaping on the west side of the building as approved by Staff. The motion carried unanimously (5 -0). Councilmember Holden stated when the development agreement was brought forward for approval she would like to see a representation of the designs on all sides of the building. The primary motion as amended was called to a vote. The motion carried unanimously (5 -0). B. Adopt Performance Measures as Recommended by the Council on Local Results and Innovation Director of Finance and Administrative Services Iverson stated the Council on Local Results and Innovation was created by the 2010 Legislature to set benchmarks for city and county operations. Through several meetings, the group adopted standards, which are relatively easy to measure using survey tools. The legislation comes with two incentives to participate. There is a standing appropriation available for participants equal to 14 cents per capita, or $1,337 a year for the City of Arden Hills. All the City needs to do to receive this money for 2011 is to pass a resolution and mail it in to the Office of the State Auditor (OSA) by July 1. The other incentive is that participating entities are exempt from levy limits. The OSA will not be looking for any results on the performance measures until 2012 for year ending 2011. As part of the City's ARDEN HILLS CITY COUNCIL — June 27, 2011 16 7.B. Adopt Performance Measures as Recommended by the Council on Local Results and Innovation (continued) budget process, Staff has been trying to incorporate performance measures into their process and documents. At the May 16, 2011 worksession, the Council also expressed their interest in developing performance measures. Participation in this program does not commit the City to exceeding the levy limit caps for Pay 2012 it merely gives the City the potential to go beyond the existing levy limit rule if the Council wishes. The adoption of these standards will allow the City to collect about $1,337 in Local Government Aid for both 2011 and 2012 to help defray what seems to be a developing consensus to survey the community. The only additional condition is that the City survey on the exact questions stipulated in the program. The City may add any other questions the Council would like. Mayor Grant clarified there would be no additional costs to the City to conduct the survey. Director of Finance and Administrative Services Iverson stated the City already utilizes and pays for Survey Monkey on the website and it could advertise the survey in the newsletter. The only criteria for the survey are the questions that must be included in the survey. Councilmember Holden asked if the City would receive the Local Government Aid with the expected budget cuts. She also asked if the additional work would be a problem for Staff at this time. Administrator Klaers stated that there would be only a very limited amount of additional work necessary from Staff to complete this project. Director of Finance and Administrative Services Iverson stated Staff was confident the Local Government Aid funds would be received. The City already utilizes Survey Monkey and the addition of the required questions for this program would not be difficult for Staff to include. Councilmember Tamble stated this would be a good communication tool to gather information from the community. It will not cost the City any additional funds to participate in the program and he is in favor of this at this time. MOTION: Councilmember Holmes moved and Councilmember Werner seconded a motion to Adopt Resolution 2011 -031; a Resolution Adopting the 2011 Performance Measures as Recommended by the Council of Local Results and Innovation. The motion carried unanimously (5 -0). C. Planning Case 11 -012 — Zoning Code Amendment Regarding Section 1355 City Planner Beekman stated on May 5, 2011, the Governor signed into law new legislation that revises the criteria cities must use when reviewing variance requests. In order to remain in compliance with State Statutes, the City must update its Zoning Code to incorporate the revised regulations. As part of this update, Staff is recommending that Section 1325.03, Subd. 3.C. be omitted from the Zoning Code, as it pertains to specific requirements for height variances, which are no longer necessary given the new variance criteria. The new variance review criteria can encompass the specific concerns related to height variances while treating all variance requests the same. Section 1355 of the City's Zoning Code lays out the administrative procedures for all land use applications made to the City. In addition to updating the variance procedures, Staff is also ARDEN HILLS CITY COUNCIL — June 27, 2011 17 7. C. Planning Case 11 -012 — Zoning Code Amendment Regarding Section 1355 (continued) recommending several other revisions that bring the City's codes in line with State Statutes. The Planning Commission reviewed this application and held a public hearing at their June 8, 2011, meeting and unanimously recommends approval of the changes. Councilmember Holmes suggested the language in Section 1355.02 be consistent with the language in Section 1355.01 Subd. 2 and read: Requests for Variances and Site Plan Reviews do not require a public hearing unless the Zoning Administrator determines that adjoining property owners should be invited to the Planning Commission meeting to offer responses to the application prior to action by the City. City Planner Beekman stated she supports this language change. MOTION: Councilmember Holmes moved and Councilmember Mayor Grant seconded a motion to Approve Ordinance 2011 -008 in Planning Case 11 -012 to Amend Section 1355 of the Zoning Code and Omit Section 1325.03, Subd. 3.0 in its Entirety, as Presented in the June 27, 2011, Report to the City Council. MOTION: Councilmember Holmes moved and Mayor Grant seconded a motion to Amend Section 1355.02 to Read: Requests for Variances and Site Plan Reviews do not require a public hearing unless the Zoning Administrator determines that adjoining property owners should be invited to the Planning Commission meeting to offer responses to the application prior to action by the City. The motion carried unanimously (5 -0). MOTION: Councilmember Holmes moved and Councilmember Holden seconded a motion to Amend Section 1355.04 Subd. 5(a) to Read: A public hearing is not required but neighboring property owners shall be notified. The motion carried unanimously (5 -0). The amended motion was called to a vote. The amended motion carried unanimously (5 -0). Councilmember Holden thanked City Planner for the hard work and commented that it was well done. D. Presbyterian Homes Conduit Debt Waiver Letter Director of Finance and Administrative Services Iverson stated as part of the Development Agreement with Presbyterian Homes, the City stipulated that all conduit debt for the project needed to be done through the City of Arden Hills. As part of that agreement, the fee schedule for the conduit debt payable to the City of Arden Hills was agreed upon. At the time the development agreement was made, cities had the ability to issue $30,000,000 in bank - qualified bonds per year. The Federal Government has since changed the limit to $10,000,000. ARDEN HILLS CITY COUNCIL — June 27, 2011 18 7.D. Presbyterian Homes Conduit Debt Waiver Letter (continued) Presbyterian Homes is asking the City Council to waive the reading of Section 7.1(d) — the City of Arden Hills issue 100% of the bonds — with the condition that Presbyterian Homes will pay the full fee as if the City of Arden Hills issued all the bonds. This waiver will allow Presbyterian Homes to issue bank - qualified debt for the entire bond issue by using multiple jurisdictions. By approving this waiver, the City will still receive the entire amount of the fee for conduit debt that it would have received if the City had issued all the bonds. The waiver is only for this one section of the development agreement. If the City were to need to issue debt, the contract already protects the City, as Presbyterian Homes would have to pay the difference between the interest rate of the bank - qualified bonds and the bonds that are not bank qualified. Councilmember Holden stated that Presbyterian Homes would be paying other municipalities for conduit financing and when Arden Hills had requested Presbyterian Homes to pay for a greater portion of the project they did not have the funds. Director of Finance and Administrative Services Iverson stated due to the changes in the amount the City is able to provide for Presbyterian Homes they have no other choice but to pay fees to other municipalities to obtain the needed funds. MOTION: Councilmember Holden moved and Mayor Grant seconded a motion to Approve the Waiver Letter as Presented and to Direct the City Administrator to Send the Letter to Presbyterian Homes of Arden Hills, Inc. The motion carried unanimously (5 -0). E. Call for Public Hearing — Presbyterian Homes Conduit Debt Director of Finance and Administrative Services Iverson stated as part of the development agreement with Presbyterian Homes, funding for the project is to come from the issuance of conduit debt or tax - exempt obligations. In order for the bonds to be considered tax - exempt, they need to be issued as bank - qualified bonds. No issuer of tax - exempt bonds may designate more than $10,000,000 of tax - exempt as bank- qualified in a calendar year. To move forward with the issuance of the bonds, a public hearing needs to be set and notice of such hearing published. The public hearing is scheduled for July 25, 2011. Once the public hearing has been held, the Council will be asked to approve preliminary approval to the issuance of the bonds. At this point, Presbyterian Homes will enter into negotiations with one or more jurisdictions to issue bonds and the Council will be asked to approve the issuance of those bonds by other jurisdictions. Mayor Grant asked if the City would be able to choose the jurisdiction Presbyterian Homes talked to about additional conduit financing. Director of Finance and Administrative Services Iverson stated the City would not be able to choose the jurisdictions from which Presbyterian Homes obtains the funding. MOTION: Councilmember Holden moved and Mayor Grant seconded a motion to Adopt Resolution 2011 -034; a Resolution Calling for a Public Hearing on July 25, 2011, and Authorizing Publication of a Notice of Public Hearing with Respect ARDEN HILLS CITY COUNCIL — June 27, 2011 19 7.E. Call for Public Hearing — Presbyterian Homes Conduit Debt (Continued) to the Proposed Issuance of Revenue Bonds Under Minnesota Statutes, Chapter 462C, as Amended, for the Benefit of Presbyterian Homes Of Arden Hills, Inc. The motion carried unanimously (5-0). F. Council Liaison to Website Project City Administrator Patrick Klaers stated updating, improving, and making the City's website more user friendly has been an issue for a while that is now getting serious attention from the Council, Staff, and the Communications Committee. Following the June 13, City Council discussion, the Community Development Director has been asked to take the lead in moving the "website upgrade" project forward. Staff believes it is important to have a Council Liaison involved in this project so that there is good communication with the Council on what is happening on the project and Staff can receive feedback when time sensitive decisions need to be made. Councilmember Tamble has volunteered to be the Council Liaison for this project. Councilmember Tamble stated being the liaison for this project would be a good fit as he is also the liaison to the Communications Committee. His background also makes this a good fit for him. Councilmember Holden asked if this would be a free-standing committee or if it would be a sub- committee to the Communications Committee. City Administrator Klaers explained that it is planned to be a free-standing staff committee and having a member of the Council present will make communications more streamlined. Councilmember Holden stated the Communications Committee has been pushing for this project to be done and they should be involved in the process as well. Community Development Director Hutmacher stated a process would be laid out including a timeline and when the various Committees and Departments should be involved. There will also be a business needs analysis done. Appointing a Council liaison will make the day-to-day decision making and Council communications process more streamlined. As the process moves forward those Committees and Departments that will need to provide input will be involved. Councilmember Holden explained the Communications Committee needed to be included in the process because this is the committee that pushed to have this project done. Administrator Klaers and Community Development Director Hutmacher agreed that this involvement from the Communications Committee is a good idea and will be incorporated into the process for working on the website upgrade. MOTION: Councilmember Holden moved and Councilmember Holmes seconded a motion to Appoint Councilmember Tamble as the Council Liaison to the Staff Website Upgrade Proiect/Committee. The motion carried unanimously (5-0). ARDEN HILLS CITY COUNCIL — June 27, 2011 20 8. UNFINISHED BUSINESS None. 9. COUNCIL COMMENTS & STAFF UPDATES Councilmember Tamble stated that the demographic information for Arden Hills compiled by Community Development Director Hutmacher was very informative. Councilmember Holden stated her term with Northwest Youth and Family Services will expire at the end of June and this will need to be reviewed by the Council. She stated she had also attended a meeting for the Yellow Ribbons Program. She stated there would be a resolution coming before the Council to let people know about the organization and what they do for military personnel and their families. Mayor Grant stated the City had received another letter from the Met Council about challenging the census results. He stated there is no reason for the City to challenge the census at this time. Mayor Grant stated the City of New Brighton was doing a book club for the opening of the library and the Council had agreed to support this program at a previous Council meeting. He asked City Administrator Klaers to contact New Brighton and let them know that Arden Hills was supporting the book club. Mayor Grant stated a resident had expressed interest in having additional trees planted in the open spots along the south side of County Road 96. He asked Staff to look at this area and see if some of the trees planted by the County need to be replaced. He stated there are also dead trees along County Road 96 and these need to be looked into by Staff to determine how these should be removed and replaced. City Administrator Klaers congratulated Director of Finance and Administrative Services Iverson on the successful completion of the City's audit. City Administrator Klaers stated he has not heard back from the County regarding the possibility of holding a joint session in mid -July to discuss the stadium proposal with the residents. He asked if Council wanted to hold the meeting even if the County was not able to attend. Councilmember Holmes stated it was important that this meeting be a joint meeting with the County and if they were not able to attend then the City should postpone this meeting. City Administrator Klaers stated due to the late time, the City Administrator Review that was scheduled after the regular meeting can be postponed to a later date. ARDEN HILLS CITY COUNCIL -- June 27, 2011 21 ADJOURN MOTION: Councilmember Holden moved and Councilmember Tamble seconded a motion to adjourn. The motion carried unanimously (5 -O). Mayor Grant adjourned the Regular City Council Meeting at 10:01 p.m. Patrick Klaers City Administrator David Grant Mayor