HomeMy WebLinkAbout12-15-14-WS ,
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Approved: February 9, 2015
CITY OF ARDEN HILLS, MINNESOTA
CITY COUNCIL WORK SESSION
DECEMBER 15, 2014
5:00 P.M. -ARDEN HILLS CITY HALL
CALL TO ORDER/ROLL CALL
Pursuant to due call and notice thereof, Mayor Grant called to order the City Council work
session at 5:02 p.m.
Present: Mayor David Grant; Councilmembers Brenda Holden, Fran Holmes, and
Dave McClung
Absent: Ed Werner(excused)
Also present: City Administrator Patrick Klaers; Director of Finance and Administrative
Services Sue Iverson; Public Works Director Terry Maurer; Community Development
Director Jill Hutmacher; Associate Planner Matthew Bachler; City Planner Ryan Streff;
and City Clerk Amy Dietl
1. AGENDA ITEMS
A. TCAAP
Community Development Director Hutmacher stated that on November 3 and 24, 2014, the
City Council discussed the City's vision for the Hill and Creek neighborhoods and provided
direction to staff regarding zoning and single-family design standards. She reported that a panel
of multi-family developers was in attendance to discuss market and design criteria for apartments,
condominiums, and senior housing. She noted that staff was requesting feedback on the draft
zoning and design standards for multi-family development and the Town Center and
Neighborhood Transition Districts.
Community Development Director Hutmacher indicated that as the TCAAP zoning is currently
drafted, the Town Center District allows high-density housing and a mix of uses. Commercial
uses would be allowed on the first floor of mixed-use buildings or in free-standing buildings.
Commercial ready standards are required on the first floor along pedestrian-priority and
pedestrian-friendly frontages. Based on developer feedback, a density of approximately 40 units
per acre is assumed. While the market does not support mixed-use development at this time, that
may change as the site develops. Commercial ready standards preserve flexibility for a future
coffee shop, accounting office, or neighborhood store in locations facing the small public square.
ARDEN HILLS CITY COUNCIL WORK SESSION—DECEMBER 15, 2014 2
Community Development Director Hutmacher explained that the Transition Neighborhood is
zoned to allow medium-density multi-family as well as small-scale commercial uses such as
restaurants, banks, daycares, and retail. This district is intended to provide a transition from the
relatively low-density single-family neighborhoods to the higher-density Town Center District.
Community Development Director Hutmacher reviewed how the current plan compared to the
Ryan Companies plan with regard to density and requested comment from the Council regarding
the following matters:
1. Are the residential and commercial uses currently permitted in the Town Center and
Neighborhood Transition Districts acceptable?
2. Are the total number of units and the projected density of the Town Center and
Neighborhood Transition Districts acceptable?
3. Should commercial uses be allowed in free-standing buildings in these districts?
4. Are any additional revisions needed for the design standards?
Eric Anderson, Ryan Companies, introduced himself to the Council and explained that since he
last saw the Council he has been heavily involved in the senior housing market.
Kelly Doran, Doran Companies, introduced himself to the Council and discussed the types of
housing projects his company has been completing.
Paul Sween, Dominium, reported that his business was based out of Plymouth, Minnesota. He
indicated that his company does some senior housing projects, but for the most part, it constructs
multi-family general occupancy.
Stacie Kvilvang, Ehlers & Associates, provided the Council with a presentation on the proposed
housing for TCAAP and discussed the comments received from contractors who were contacted
to provide feedback to staff. She stated that there was a good demand for multi-family housing in
the area and believed that 600 units would be supported until 2019. She reviewed several existing
multi-family developments that would work well on the TCAAP site.
Mayor Grant asked if condos would be viable on TCAAP.
Ms. Kvilvang stated that there was very little market for this housing style. She discussed two
successful developments in the metro area noting that condos suited only a very specific area or
market.
Mr. Doran explained that many architectural and construction companies are no longer insured to
build condos.
Mayor Grant questioned why staff was referring mostly to four story buildings.
Mr. Anderson reported that five story buildings were more costly and typically required
structured parking. He discussed how apartment living has evolved over the past 20 years, given
the numerous amenities that are now being offered.
ARDEN HILLS CITY COUNCIL WORK SESSION—DECEMBER 15, 2014 3
Further discussion ensued regarding the vision for the multi-family unit types being proposed for
TCAAP.
Mr. Anderson estimated that rents in this area were roughly $1.60 per square foot. He discussed
how this would impact the units on TCAAP. He anticipated that rent would be kept separate from
utilities and reported that this led to renters more properly managing their use of energy.
Mayor Grant understood that amenities were important. He questioned if staff had a list of
desired amenities.
Community Development Director Hutmacher stated that cities usually focus on requiring high
quality buildings without requiring specific market-driven amenities.
Councilmember Holden asked if retail uses could be mixed in with the proposed multi-family.
Mr. Anderson did not believe that vertical mixed housing would be supported on TCAAP. He
understood that the expectation would be to have new retail in the proximity, but did not
recommend that the City pursue vertical mixed housing.
The Council further discussed the potential locations for retail on TCAAP.
Councilmember Holden questioned if contractors were able to build green on TCAAP.
Mr. Sween explained that the energy for Pillsbury was now being generated through
hydroelectric. He explained that he has also used micro-turbines for a recent project. He believed
that there would have to be an incentive for contractors in order for them to build more green.
Mr. Doran stated that people were becoming more mindful of their energy consumption even
though energy is very inexpensive right now.
Mr. Anderson indicated that broadband and fiber optic capacity would be huge issues for the
TCAAP site. He cautioned the City against requiring contractors to construct LEED certified
buildings as this would increase the overall expense of projects, which would trickle down to
higher rents.
Councilmember Holden requested further information on the differences between senior
cooperatives, senior housing with services, and assisted living.
Mr. Anderson explained that a senior cooperative was similar to a condo and would target a
different market. He reported that he was currently building another product called an age in
place facility. He stated that the age in place facilities were luxury apartments with amenities and
meal options for independent, assisted, and memory care elders. He indicated that he likes to
locate near market rate rental, libraries, schools and retail areas.
Mr. Sween stated that the average age for his renters is 30. He stated that the longer people rent,
the more likely they are to remain in the community after moving out of their rental. He
anticipated that 60% of the rental units would be two or more bedrooms.
ARDEN HILLS CITY COUNCIL WORK SESSION—DECEMBER 15, 2014 4
Community Development Director Hutmacher requested comments on the design standards.
Mr. Anderson explained that from his perspective, he would like additional on-site walking and
greenspace for seniors. In addition, his buildings would have ambulance access and for this
reason,he was closer to 26 to 30 units per acre.
Mr. Doran stated that he reviewed the design standards and he believed that there were
guidelines that could be bent. He anticipated that much of the development for the TCAAP site
would require some level of flexibility.
Councilmember Holden reviewed the governing structure [Joint Development Authority (JDA)]
that would be overseeing the development for TCAAP.
Mayor Grant reported that the JDA would be acting as the planning commission for
developments on TCAAP.
Mr. Sween encouraged the City to set high standards for the future developments as each
contractor at the table would want to have a high quality neighbor.
Councilmember Holden encouraged the contractors to review the design standards further and
provide feedback to the City.
Mr. Sween stated that after all of the discussion this evening, he believed that all retail should be
centralized in one location.
Mayor Grant thanked the multi-family representatives for being present this evening and for
providing the Council with their feedback. He then recommended that the Council address the
questions raised by staff.
Councilmember Holmes encouraged Council and staff to consider the comments made by the
experts this evening and suggested that the vertical mixed use buildings not be allowed on
TCAAP.
Councilmember Holden agreed.
Councilmember McClung was in favor of vertical mixed use being left up to a developer if one
was willing to take a risk on this style of development.
Mayor Grant summarized that the consensus was to not allow vertical mixed use on TCAAP.
Community Development Director Hutmacher questioned if a free-standing apartment building
should be allowed in office or retail districts.
Councilmember Holmes was not opposed to having an apartment building adjacent to an office
building.
ARDEN HILLS CITY COUNCIL WORK SESSION—DECEMBER 15, 2014 5
Councilmember Holden did not support the use of residential units above retail. She was not in
favor of having residential in an office building either. She suggested that multi-family residential
remain separate from the office zoning district.
Councilmember McClung was willing to support residential in the office zoning district. He
was willing to take what the market would support.
Mayor Grant believed that commercial should remain commercial alone and should not have
residential units interspersed. In the same way, he wanted to see residential areas remain just that
and not be mixed vertically with retail or office.
Councilmember Holden commented that the original design of TCAAP was created to keep
residential areas separated from the industrial and office uses.
Community Development Director Hutmacher inquired if the Council would support mixed-
use
ixeduse between office and retail.
Councilmember Holden and Mayor Grant supported this suggestion.
Councilmember Holden reviewed the previous Ryan Companies plan from 2008 and reported
that the plan called for 1,481.9 housing units on TCAAP. She was pleased that the new plans for
TCAAP were suggesting roughly the same number of units. Her only concern with TCAAP was
how the neighborhood transition areas would develop.
Mayor Grant expressed concern with the Town Center and wanted to see this area be a high
quality development with sustainability and amenities.
The Council further discussed the type and quality of building materials for Town Center, along
with how Town Center may be impacted by a spine road realignment.
Councilmember Holden questioned how many acres were included in Town Center and the area
above the park.
Community Development Director Hutmacher noted that the Town Center was 15 acres in
size. She discussed how the zoning parcels around the Town Center may still be shifted if the
spine road is realigned.
City Administrator Klaers discussed how the Town Center would be impacted if the spine road
was realigned.
Mayor Grant asked if the Council supported the proposed densities on the Town Center acreage,
at or around 600 units.
Councilmember Holden believed that 600 units would look and feel different if half of the units
were for seniors.
Councilmember Holmes questioned if the Council could set a maximum density level for the
Town Center.
ARDEN HILLS CITY COUNCIL WORK SESSION—DECEMBER 15, 2014 6
Community Development Director Hutmacher stated that this was the case and noted that a
maximum density level per acre had been set for the Hill and Creek neighborhoods as well.
City Administrator Klaers commented that the Town Center would be greatly impacted by who
the County sells the property to and if the contractor is a quality builder. He believed that the
County understood the importance of this matter.
Councilmember McClung was willing to support 45 units per acre in the Town Center.
Councilmember Holden indicated that she would have a hard time making a determination on
this until she knew how many acres would be impacted in the Town Center through the spine road
realignment.
Community Development Director Hutmacher explained that the assumption was that with the
realignment the Town Center would remain somewhere at or around 15 acres.
Councilmember McClung discussed a potential option for the Town Center that would provide a
corridor to funnel traffic to and from the retail areas creating a downtown block.
Councilmember Holden stated that she could support 40 units per acre if the orange area on the
zoning map was resized.
Mayor Grant supported 40 units per acre in the Town Center as well.
Community Development Director Hutmacher asked if the Council would like to set a density
restriction on the neighborhood transition areas.
Councilmember McClung was in favor of having 460 units within the neighborhood transition.
Mayor Grant wanted to see no more than 10 units per acre on the neighborhood transition
parcels.
Community Development Director Hutmacher believed that the maximum would have to be
over 10 in order meet the needs of future developers. She estimated that this number would have
to be closer to 12 units per acre. She asked that the Council reserve some level of flexibility.
Mayor Grant stated that his goal was to be within 10 to 12 units per acre in the neighborhood
transition areas and he wanted to see a variety of products.
Councilmember Holden recommended that the language regarding church spires be addressed
within the zoning code.
Community Development Director Hutmacher stated that she would work on this to provide
further clarity.
B. Residential Recycling Services Update
ARDEN HILLS CITY COUNCIL WORK SESSION—DECEMBER 15, 2014 7
City Planner Streff explained that the current residential recycling services contract with Eureka
Recycling expires on March 1, 2015. As a result, a Request for Proposals (RFP) was developed
and approved by the Council on September 8, 2014. The RFP was then released by the City to the
public on September 10, 2014, in order to obtain proposals for residential recycling services.
City Planner Streff reported that proposals were received by five companies, including Eureka
Recycling, Republic Services, Tennis Sanitation, Walters Recycling, and Waste Management.
Once the proposals were collected, the review team evaluated each of the five proposals based on
the criteria outlined in the RFP.
City Planner Streff stated that each of the five proposals submitted to the City met the general
criteria stated within the RFP for residential recycling services. However, the cost analysis
indicated that Republic Services had the overall lowest price for the services requested by the
City. The review team evaluated each proposal carefully to determine the value of each proposal
based on the evaluation criteria and cost analysis completed for the various options in the RFP.
The review team then discussed each option relative to the recycling needs of the City and its
residents. The discussion and review led to the recommendation that a five (5) year contract with
weekly service and City-owned carts be entered into with Republic Services.
City Planner Streff commented that prices for four service options were requested in the City's
request for proposals (RFP) for both three(3)year and five(5) year contract terms:
• Option 1 —Every other week(EOW), City-owned carts
• Option 2—Weekly, City-owned carts
• Option 3 —Every other week(EOW), Contractor-owned carts
• Option 4—Weekly, Contractor-owned carts
City Planner Streff explained that the lowest priced respondent was Republic Services in both
the three (3) and five (5) year contract terms. As recommended by the review team, the five (5)
year, weekly service (Tuesday/Wednesday Schedule), City-owned carts scenario is as follows
(price estimates were in order of lowest to highest, after revenue sharing, rounded to the nearest
$1,000):
• Republic=$415,000 over five years o $3.03 /month/household
• Walters = $653,000 over five years o $4.32/month/household
• Tennis= $665,000 over five years o $4.42 /month/household
• Eureka= $793,000 over five years o $5.65 /month/household
• Waste Management=$916,000 over five years o $6.11 /month/household
City Planner Streff noted that the cost for the contractor's portion of recycling services to
residents under the existing contract with Eureka Recycling is $3.27 per month per household for
weekly service with recycling bins. The new service to residents would be $3.03 per month per
ARDEN HILLS CITY COUNCIL WORK SESSION—DECEMBER 15, 2014 8
household for weekly service with recycling carts. As noted, these figures only reflect the amount
due to the contractor for each month of service per household. For the total cost to residents per
month/year the cost of the cleanup day events and administration must be added. In 2015,the total
cost to residents for the complete recycling program is $3.92 per month or $47.00 per year. That
breaks down to $3.27 for the contractor's services and $0.65 for cleanup day and administration
expense.
City Planner Streff stated that staff is in the process of applying for a Public Entity Innovation
Grant (PEIG) through Ramsey County for residential recycling carts. PEIG grants are typically
awarded up to $100,000 for the purchase of recycling carts. However, the City is applying for
$125,000 to cover the entire cost for the transition to recycling carts. If the City only receives a
PEIG in the amount $100,000 for the purchase of recycling carts, the City would then need to use
the reserves within the recycling fund or raise the current rate for recycling services to cover this
additional expense. The recycling fund currently has approximately$80,000 in reserves.
City Planner Streff reported that staff is continuing to work with Republic Services to negotiate
the final contract for residential recycling services. Staff plans to have a final contract prepared for
the Council's consideration at the City Council meeting on January 12, 2015. A few highlights of
the draft contract have been provided below.
• The Contractor shall be responsible and pay for all aspects of cart management
and operations including; receiving, assembly, distribution (aka new cart "roll
out"), excess cart inventory, (i.e., provide "warehouse" services), cart
switches/replacements, cart maintenance, repair or replace damaged carts, and
manage all aspects of warranty repairs.
• The Contractor shall provide recycling collection services at the City owned
and operated buildings and parks at no additional cost to the City.
• The Contractor and the City shall work together in the preparation and
distribution of educational materials to insure accurate information and
program directions. The Contractor shall pay for the annual design, printing
and mailing of a curbside program flyer.
• The Contractor shall conduct its own promotions and public education to
increase participation. The publicity and promotion program may include
articles for city newsletters, public appearances, provision of information for
local environmental groups, or attendance at public events sponsored by the
City. The Contractor shall at a minimum provide one (1) newsletter article per
year.
• Recyclables collection shall be $3.03 per eligible residential dwelling unit per
month for weekly recycling service. Eligible residential dwelling units with
more than one (1) cart will be charged an additional fee of$2.00 per household
per month per cart.
• Recyclables collection shall be $55.00 per eligible multi-dwelling unit per
month for each four yard container serviced once per week or$4.25 per eligible
multi-dwelling unit per month for each 65 gallon cart serviced once per week.
ARDEN HILLS CITY COUNCIL WORK SESSION—DECEMBER 15, 2014 9
• The processing fee for all recyclable material commodities shall be $66.00 per
ton.
• The Revenue Share on all commodities shall be split between the City and the
Contractor at a rate of 80% (City)/20% (Contractor).
City Planner Streff indicated that the current residential recycling services contract with Eureka
Recycling is set to expire on March 1, 2015. As proposed, the new contract with Republic
Services is set to begin on May 4, 2015, in order to allow additional time for cart delivery and to
avoid a cart rollout to approximately 2,500 households in winter weather conditions. Republic
Services has indicated that a more efficient rollout of a new cart system can be completed if the
current contract is extended. In order to cover this gap in services, Eureka Recycling has offered
to extend their contract for this additional time. Staff intends to bring a contract extension
agreement back to the Council at their next regular scheduled City Council meeting in January.
Mayor Grant questioned what the rates would be if the recycling were picked up on an every-
other-week basis.
City Planner Streff reviewed the rates for every-other-week recycling pickup from the five
vendors with the Council.
Councilmember Holden supported the recommendation for recycling pickup on a weekly basis.
2. COUNCIL COMMENTS AND STAFF UPDATES
Director of Finance and Administrative Services Iverson explained that Kyle Howard has
accepted a job in North St. Paul and his last day with the City is January 2nd. She reported that
this position would need to be advertised and filled. She suggested that the position be reviewed
by the Personnel Committee.
The Council supported the Personnel Committee reviewing this item.
Councilmember McClung stated that on January 15th at 6:30 p.m. there will be a Ramsey
County Legislators meeting at the Kelly Inn in St. Paul.
Mayor Grant reviewed the Council Liaison assignments for 2015.
ADJOURN
Mayor Grant adjourned the City Council work session at 8:35 p.m.
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Amy Dietl a
David Grant
City Clerk Mayor