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HomeMy WebLinkAbout11-21-16-WSEN HILLS Approved: December 12, 2016 CITY OF ARDEN HILLS, MINNESOTA CITY COUNCIL WORK SESSION NOVEMBER 21, 2016 5:00 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Grant called to order the City Council Work Session at 5:00 p.m. Present: Mayor David Grant; Councilmembers Brenda Holden, Fran Holmes, Dave McClung and Jonathan Wicklund Absent: None Also present: Interim City Administrator Sue Iverson; Interim Public Works Director/City Engineer Andy Brotzler; Stacie Kvilvang, Ehlers & Associates; Interim City Planner Eric Zweber; City Clerk Julie Hanson; and Jason Amberg, WSB and Associates Mayor Grant requested the agenda be amended to have Items IC, ID and IF moved to the bottom of the agenda and only be discussed if time allows. In addition, he suggested Item 11-1 be discussed prior to Item 1 G. 1. AGENDA ITEMS A. Introduction of Customer Service Specialist and Public Works Superintendent Interim City Administrator/Director of Finance and Administrative Services Iverson introduced Customer Service Specialist Britt Pease and Public Works Superintendent Ken Novack to the City Council. Customer Service Specialist Pease thanked the Council for their time and discussed her municipal work history. She noted she began with the City of Arden Hills on October 3. Public Works Superintendent Novack stated he came to Arden Hills from Vadnais Heights. He commented on his previous work history and stated he was looking forward to working with the City. He noted he began with the City of Arden Hills on October 10. ARDEN HILLS CITY COUNCIL WORK SESSION — NOVEMBER 21, 2016 2 B. TCAAP Review — Parks Program and Open House Interim Public Works Director/City Engineer Brotzler stated on November 14, 2016, Jason Amberg, LA, of WSB provided a summary of the park costs and a detailed cost estimate for each park. These costs were based on installing the park amenities identified by the development team and construction of high quality facilities. Including a 20% contingency and a 25% design and construction oversight, the total cost estimate for the Creek Park, Hill Park and Town Center Park is $18,994,923. To pay for that level of park improvements, the park dedication fee would need to be set at $11,000 per residential unit, which would be higher than all other metropolitan communities. Those park improvement figures are provided within Attachments A and B. Interim Public Works Director/City Engineer Brotzler explained Mr. Amberg will be providing categories of differing levels of parks improvements and choices of more focused improvements (e.g. irrigation only for the ballfields and not for the entire park). Mr. Amberg would like to have a conversation with the City Council on their priorities for park improvement. Based on that direction, staff can meet with the development team to try to find additional savings, possibly through synergies such as mass grading or through construction partnerships the development team may have. Mayor Grant commented on the costs and stated the City would need to have a clear understanding prior to moving forward. He stated park costs could not remain open ended or have large contingencies. Interim Public Works Director/City Engineer Brotzler believed the City Council would have time to work through this issue prior to the land being developed in order to make any necessary adjustments to the park dedication rates. Mayor Grant stated these rates would also have to be agreed upon by the developer. Councilmember Holden anticipated that the park plans would have to be adjusted after staff spoke with the Master Developer due to the fact the City would not be able to pay for all of the overages. She encouraged staff to have an apples -to -apples discussion with the Master Developer and report back to the City Council. Mayor Grant commented further on the importance of the proposed park amenities to the developer and potential residents on TCAAP. Interim Public Works Director/City Engineer Brotzler believed the Council had time in the next six months to make adjustments to the park dedication fees to appropriate rates to reduce or eliminate the financial gap. Mayor Grant questioned how the Master Developer felt about increased park dedication fees. Bob Lux, Alatus, believed the City was on the right track and wanted to see the City work together with Alatus to find the correct parks package. He supported the City's approach and was comfortable signing onto this agreement. ARDEN HILLS CITY COUNCIL WORK SESSION — NOVEMBER 21, 2016 3 Mayor Grant asked what agreement. Mr. Lux indicated an agreement would have to be signed between Alatus and the City regarding park amenities. Councilmember Holmes commented on the proposed park dedication numbers. Councilmember Wicklund understood the highest park dedication rate charged in the metro area was $8,000 per unit. He asked if that rate would provide the City with enough resources to complete the proposed park plan. Stacie Kvilvang, Ehlers & Associates, reported this was the case. Jason Amberg, WSB, explained the park plans would need to be further defined in order to answer this fully. Councilmember Wicklund stated with the type of project being proposed he anticipated the City would have to be within the $8,000 range. Mayor Grant asked if staff had a limit on what the park specifications should be. Mr. Amberg did not have any specifications from the developer. Further discussion ensued regarding park dedication fee calculations. Councilmember Wicklund questioned what the City's objective was for this agenda item. Mayor Grant hoped to see the Council review the parks program and that an agreement be devised for costs going forward. He wanted to understand what the City would be contributing. Ms. Kvilvang commented on the numbers and believed WSB had the most detailed assumptions within their park plan. She encouraged the Council to focus on the amenities, the land use designation and leave the payment process to be addressed in the future. Mayor Grant believed the financial discussions should happen prior to approval of the plans and amenities. Councilmember Holmes stated at this time, the park plans were only $1 million off. The only problem she saw with the plan at this time was that too high of a park dedication rate was being suggested. She anticipated this rate could be adjusted if the contingency rates and construction oversight were redefined. She asked if the Council should have a discussion on bonding. Ms. Kvilvang commented it would take six months or more to fully design the park plans. She cautioned the Council from holding off their land use approval during this time. Mayor Grant wanted to see an agreement or understanding in place prior to granting land approval. ARDEN HILLS CITY COUNCIL WORK SESSION — NOVEMBER 21, 2016 4 Councilmember Holmes agreed stating if the City was going to rely on park dedication fees it would be good to know how much of the park amenities were not covered. Ms. Kvilvang explained that a park dedication fee of $8,000 per unit would give the City a budget of $15 million for parks. She reported that both Jason and Andy believed this was a healthy budget to complete the parks plan. Mayor Grant recommended park land costs be discussed with the developer prior to moving forward. Councilmember Holden asked if grading was included in the park plan fees. Interim Public Works Director/City Engineer Brotzler reported grading fees were not included. He provided further comment on the differences between the City's plan and the developer's park plan. Councilmember Holmes understood the developer has concerns with increasing the park dedication fee. Mayor Grant requested staff meet with the developer to discuss an apples -to -apples park plan in order for an agreement to be reached. Councilmember Wicklund supported a higher park dedication fee being charged given the type of development that would be constructed on TCAAP. Councilmember McClung agreed with the Mayor and wanted to see an apples -to -apples comparison conducted between staff and the Master Developer in order to reduce the financial gap and to further refine the park plans. Mayor Grant suggested the Council move onto the Open House discussion. Interim City Planner Zweber reported from 4:30 to 7:30 p.m. on Wednesday, November 16, 2016, a public Open House was held with representatives of both the City and the development team. At the entry table, people were asked to sign -in and had the opportunity to pick up a survey and fact sheet about the development proposal. There were 158 people that signed in at the Open House and 125 surveys were filled out and dropped into the box on the entry table on their way out. The survey asked 5 questions in which people were asked to rank their responses from 1 to 5, with 5 being the highest level of support and 1 being the lowest level. The average and median responses to these questions were reviewed in detail with the Council. Mayor Grant asked for comments from the Council based on the feedback. Councilmember Holmes was in favor of the project moving forward. Councilmember McClung stated he was pleased by the feedback and indicated he received a lot of positive comments from residents at the event. He supported the project moving forward. ARDEN HILLS CITY COUNCIL WORK SESSION — NOVEMBER 21, 2016 5 Councilmember Wicklund agreed with Councilmember Holmes and Councilmember McClung. He thanked all of the residents that took the time to attend the Open House. He did not believe there were any sticking points and for this reason, he recommended the project move forward. Councilmember Holden indicated she would not be supporting the TRC as is. She reported she received her postcard the day before the Open House, which was poor timing. Mayor Grant asked if staff knew how many residents attended previous TCAAP open house events. Interim City Administrator/Director of Finance and Administrative Services Iverson estimated that 100 to 120 people attended previous TCAAP open houses. Mayor Grant appreciated the feedback received from the event and commented on the 10 -story issue. He stated he was uneasy with how the information was presented but was pleased there were not more negative comments regarding building height. He believed there was still an issue with the number of apartments being proposed for the development. Councilmember Wicklund requested further comment from Councilmember Holden on her objections to the plans. Councilmember Holden feared that residents took away from the Open House that what they saw would be what they would be getting. This was not the case. She also had concerns with building height and proposed density. She questioned how the core areas of focus had been lost since October. Councilmember Holmes did not believe all residents believed the poster boards were a given, but rather were a vision for the development. She questioned how the TRC could be changed to gain favor from Councilmember Holden. Councilmember Holden stated her opinion was based on the comments she has received from residents. While she did not have a problem with 10 stories, a number of residents did. Another area of contention was the density in the Town Center and she did not understand why over 450 apartment units were necessary. Councilmember Holmes indicated the City approved 1,431 units and the developer was proposing 1,460 units. She did not believe 30 units was that big of a difference. Mayor Grant discussed the acreage per unit method the Council followed. He explained that after roads were taken out of the total land available it would be more reasonable to have 1,291 units. Councilmember Holmes stated this would still only be a difference in 100 residents. Mr. Lux explained he was proposing to build 460 apartments, 300 senior housing units and 120 condominiums. ARDEN HILLS CITY COUNCIL WORK SESSION — NOVEMBER 21, 2016 6 Mayor Grant believed there were too many apartment units as well. He wanted to see this number closer to 450 rather than 880. Councilmember Holmes understood that in order for the Town Center to be successful more than 450 units would be needed. Councilmember Wicklund appreciated the fact that his fellow Councilmembers had a pulse of the Arden Hills' residents. He valued this input but believed there was a slight misunderstanding when comparing the Town Center to downtown Minneapolis or St. Paul based on the total area of those two cities. He wanted to be assured that residents were being properly educated on the difference between the Town Center and Washington Avenue in Minneapolis. It was his hope that the Council could talk through these issues in order to arrive at 5-0 vote for the TRC. Councilmember McClung stated at the end of the day the TRC needed to move forward. He commented he was recently reelected and spoke to many residents through this process. He explained he did not receive as much negative feedback on the TCAAP plan as Councilmember Holden had received. He indicated he spent a great deal of time speaking with residents about the plan and believed the vast majority were supportive. Councilmember Holden explained she has heard from people why another developer was not selected that would come in at six stories instead of 10. Councilmember Wicklund believed six stories was classic and had already been done. He believed that Alatus was offering something more, a development that would be talked about. Councilmember Holmes indicated 16 people believed 10 stories was too high, while the majority supported the height. She believed the Open House had a great turn out and more people liked the plan than didn't like the plan. She didn't know what else the Council could do to assist Councilmember Holden. She questioned what the density should be. Councilmember Holden feared that most people did support the plan, but still had concerns with density and building height. Mayor Grant stated after reviewing the boards at the Open House he was not certain that residents would have fully understood the mix of housing to retail. Councilmember Holmes indicated another theory would be that people were going to hear what they wanted to hear. She commented the Open House provided her verification and she was surprised by the number of positive responses. Councilmember McClung questioned what would be needed from the City Council to move forward. Interim City Planner Zweber commented a Public Hearing had been posted in the paper for December 7, 2016. ARDEN HILLS CITY COUNCIL WORK SESSION — NOVEMBER 21, 2016 7 Ms. Kvilvang reported all changes had been made to the TRC based on Council feedback provided at their last worksession meeting. She noted the TRC would have a final reviewed by the Council at the November 28 meeting prior to being forwarded to the Planning Commission on December 7, 2016. Councilmember Holden indicated 22% of the people in attendance did not support the building height. Mayor Grant stated the Civic District was a show stopper for him. He wanted to be assured the City controlled this district. Councilmember McClung agreed that this property should be conveyed to the City. Mr. Lux appreciated the Council's comments and stated he would work on this with his staff. He understood this was a prime piece of real estate and understood the Council's concerns. Councilmember Holden expressed frustration with the fact that the City was not able to sit it on the land value and property negotiations between the County and the Master Developer. She asked if staff could speak with the County regarding this matter. Ms. Kvilvang anticipated that the answer to this question would be no. Mayor Grant stated his main concerns at this time regarding the TRC were parks and the Civic District. He questioned what would have to change within the TRC in order for Councilmember Holden to support the proposed density. He explained he could support the density as proposed but wished there was a different mix of housing products. Councilmember Holden indicated she was just one vote and understood the remainder of the Council supported the proposed density. She believed that one of the 230 -unit apartment buildings should be removed from the development and more houses should be built at an affordable level. Councilmember Wicklund understood the Mayor and Councilmember Holden had met with the developer to discuss the project in further detail. He asked what was discussed at these meetings. Councilmember Holden stated building height was addressed along with density. She explained the developer agreed to drop the condo building from 12 stories to 10 stories. Mayor Grant commented he told the developer he was not comfortable with more than 1500 units. Mr. Lux appreciated the feedback received from the Council and the residents at the Open House. He believed the community was coming to a conclusion on the project. It was his opinion this project works. He discussed how the proposed density would support the park dedication fees. He thought there was an agreement between the developer and the City Council on the current plans being approved subject to the Open House. ARDEN HILLS CITY COUNCIL WORK SESSION —NOVEMBER 21, 2016 8 Councilmember Holden stated she was going back on her agreement regarding the plan. She indicated the plan was supposed to be split 50150 between commercial and retail and this was not the case. Councilmember Holmes questioned how Councilmember Holden could go back on her agreement given the fact the results of the Open House were positive. Councilmember Holden commented the overall feel of the development was good. However, she did not believe enough information was gathered from the public. Councilmember Wicklund wanted to see this development succeed and asked if a 4-1 vote would offer success. Mr. Lux believed that the residential portion of the development would succeed but stated he may have a challenge when addressing the commercial side. He wanted to see this project become an award-winning development and indicated the press was all over this. Tom Shaver, Inland Partners, stated he would appreciate the Council's full support. However, if this could not be offered he believed the development could move forward and would still be successful. Mayor Grant commented on the mix of housing and suggested the outskirts of Town Center have more housing units and that the apartment number be reduced by 50. He understood this would impact parking. He recommended the Public Hearing move forward to the Planning Commission on December 7. Councilmember Holden asked when changes would be made to the TRC. She questioned if porches and decks would be made of composite materials. She commented on the poor quality of decks and porches completed by Pulte Homes. She wanted to be assured all decks were built from cedar or composite materials. Todd Stutz, Robert Thomas Homes, reviewed the building materials he used for porches and decks. He explained there were many factors that played into proper deck construction. He stated that requiring composite materials would add to the cost of construction. Mr. Lux stated cedar will outlast all other materials, when properly constructed. He did not have any concerns with the manner in which Robert Thomas Homes constructed their decks and porches. Councilmember Holden requested the TRC be amended to ensure all decks and front porches were constructed from cedar, concrete or composite materials. She suggested that all garage doors be full core insulted. Mayor Grant indicated the Planning Commission would review the TRC on December 7. The Council would then review the Commission's recommendation at a special meeting on December 19. ARDEN HILLS CITY COUNCIL WORK SESSION — NOVEMBER 21, 2016 9 E. 2017 Council Liaison Appointments Interim City Administrator/Director of Finance and Administrative Services Iverson reported each year, a Councilmember is appointed to serve as Council Liaison on the various committees and commissions in the City. She reviewed the list of current commission/committee appointments with the Council and requested Council input regarding Council Liaison appointment and JDA Appointments. It was noted a resolution delegating appointments will be brought to a City Council meeting in January for approval. Mayor Grant stated it would be his intention to open up applications for the JDA Chair position and interviews would be held. He suggested the applications be accepted through December 7. The Council agreed to hold interviews for the JDA Chair position on December 13. Councilmember Holmes requested she be able to serve as the Planning Commission liaison in 2017. Mayor Grant suggested the Council send him emails with their liaison requests. He directed staff to publicize the JDA Chair opening, along with the Commission openings. I. Personnel Committee Update Mayor Grant reported the Personnel Committee is negotiating a contract with a candidate for City Administrator. Councilmember Holmes questioned when the proposed candidate would be joining the City. Interim City Administrator/Director of Finance and Administrative Services Iverson reported that January 1 is the target start date. Mayor Grant recommended this item be placed on the December 12 agenda for approval from the City Council. H. 2017 Proposed Budget Interim City Administrator/Director of Finance and Administrative Services Iverson stated the Council previously discussed the budget on September 26, 2016 and set a preliminary levy of 4.7% which was public safety costs plus 2%. Staff reviewed the proposed budget and estimated staffing expenses in detail with the Council and asked for questions or comments. Councilmember Wicklund reviewed the City-wide budget numbers and asked how the City would be covering the TCAAP expenses. Interim City Administrator/Director of Finance and Administrative Services Iverson explained the internal service fund expenses and revenues were double -counted in the numbers as these funds are charged back to departments. She also noted reserves would be used to help pay for the $1.4 million. ARDEN HILLS CITY COUNCIL WORK SESSION — NOVEMBER 21, 2016 10 Councilmember Wicklund questioned if the budget was conservative enough to finish in the black. Interim City Administrator/Director of Finance and Administrative Services Iverson reported this was the case. Councilmember Wicklund questioned if the 4.7% levy amount could be lowered Interim City Administrator/Director of Finance and Administrative Services Iverson recommended that the levy amount remain as is in order for the City to remain sustainable. Councilmember Holmes stated she supported the hire of another City Planner. Councilmember Holden asked if the Public Works Foreman position was necessary. Public Works Superintendent Novack commented a working foreman position was a great help to the community. Interim Public Works Director/City Engineer Brotzler stated it would benefit both he and Ken to have a little more time to evaluate the staffing level of the Public Works Department. He believed it was reasonable to have eight staff members, one being the working foreman. He anticipated that as TCAAP came online another staff member may be necessary. Councilmember Holden wanted to address the Community Development Director position. She supported the City consulting with WSB versus hiring another planner. Councilmember Wicklund thought it would be in the City's best interest to have a Community Development Director on board when TCAAP begins to develop. Mayor Grant commented communities the size of Arden Hills don't typically have a Community Development Director. He was of the opinion that WSB would be able to provide the City with expertise in planning. Councilmember McClung believed the current system was working. He suggested the new City Administrator be allowed to provide input on the staffing model. For the time being, he recommended the current positions remain in the 2017 budget. Further discussion ensued regarding the City's staffing model. Councilmember Holmes believed the Public Works Department was adequately staffed but feared Senior Planner Bachler was totally overwhelmed and understaffed. She feared if the budget were adjusted too severely, the City would not have adequate funding to keep the same staffing level. Councilmember McClung appreciated Councilmember Holmes perspective and recommended the positions remain in 2017, along with the funding and requested contractors be paid until a time the City hired additional personnel. ARDEN HILLS CITY COUNCIL WORK SESSION — NOVEMBER 21, 2016 11 Interim City Administrator/Director of Finance and Administrative Services Iverson reported she would keep the staffing levels as is, but would be reducing the Public Works Department from 9 members to 8. Councilmember Holden asked if the City would be addressing the water issue at Boston Scientific. Interim City Administrator/Director of Finance and Administrative Services Iverson reported this project was included within the CIP. Councilmember Holden questioned who was writing grants on behalf of the City. Councilmember Holmes stated the City had no one writing grants at this time and recommended this be addressed in 2017 by the City Administrator. Mayor Grant asked if the General Fund surplus could be used to buy down the budget. The Council discussed the surplus dollars from 2015 and 2016 in further detail. Councilmember Wicklund stated his taxes would be going down in 2017. He supported the Council dumping the surplus into City infrastructure. Councilmember Holmes agreed. Mayor Grant suggested the levy be bought down by I% with the surplus. Councilmember McClung supported a 3.5% levy increase. Councilmember Wicklund, Councilmember Holmes and Councilmember Holden supported a 4.7% levy increase. Councilmember Holmes asked if there was Council support to move the surplus ($565,000) to the CIP. Councilmember McClung was interested in using a portion of the surplus to buy down the levy. Mayor Grant stated City policy would require the surplus to be transferred to the CIP. There was Council consensus to move the surplus. G. 2017 Proposed CIP Interim City Administrator/Director of Finance and Administrative Services Iverson stated the City Council previously met on July 18, 2016 to discuss the preliminary CIP and provide feedback and changes. The following changes since the July meeting have been made: 0 Requested changes by City Council at previous meeting. ARDEN HILLS CITY COUNCIL WORK SESSION — NOVEMBER 21, 2016 12 • County Road D and Shoreview Drive has been removed due to completion in 2016. • The Ramsey County Emergency Management Equipment has been updated following a new quote received on November 14 for the necessary upgrades. Interim City Administrator/Director of Finance and Administrative Services Iverson reported Public Works provided the Council with a memo for Council comments. The Council discussed the expense and options available to rebuild the Johanna Marsh tennis court. Councilmember Wicklund did not support rebuilding the tennis court knowing full well that significant funding would still be needed in the near future. He suggested the City speak with the neighborhood and ask if they were willing to assist the City with the project. Councilmember Holden proposed establishing a special assessment district, similar to Karth Lake, for the tennis court rehabilitation. She did support at least $100,000 being programmed for the CIP. Councilmember McClung agreed a portion of funds should be programmed for this park, however, he questioned if a tennis court was the right amenity. He feared that the City would be spending an additional $150,000 in less than 10 years. Councilmember Holden recommended staff speak with the neighborhood to see what amenities the residents wanted to see at this park. Councilmember Holden wanted to see senior equipment incorporated into the City's parks given the fact Arden Hills was an aging community. C. Moratorium Zoning Study and Subcommittee This item would be addressed at a future work session. D. 2017 Fee Schedule This item would be moved to the December 12, 2016, regular City Council meeting. F. Arden Hills Notes Proposal This item would be addressed at a future work session. 2. COUNCIL COMMENTS AND STAFF UPDATES Councilmember Wicklund asked if staff had responded to resident Jamie Jenson. Mayor Grant explained that staff had been in contact with Jamie Jenson regarding his concerns and a new system was being created to eliminate names from the list of delinquent utility accounts. ARDEN HILLS CITY COUNCIL WORK SESSION — NOVEMBER 21, 2016 13 Councilmember Wicklund appreciated staff- s efforts to address this concern. Councilmember .Holden stated she had come across several old Arden Hills directories. She recommended staff review the directories and have them posted on the City's website or be used on another social media site. Mayor Grant asked for an update from the Fire Board. Councilmember McClung reported the property at Station 1 would be sold after the interest of the City Council has been determined. Mayor Grant discussed the recent election and noted an early voter came into City Hall armed. This individual had a conceal and carry permit, but was asked to bring the gun to their vehicle. He has since learned that per the conceal and carry law, State Statute 624.714 Subd. 23, the City's sign stating guns were not welcome was illegal. Interim City Administrator/Director of Finance and Administrative Services Iverson reported she would investigate this further with the City Attorney. ["1 Z/I11N Mayor Grant adjourned the City Council Work Session at 8:38 p -in. ie Hanson David Grant .1ty Clerk Mayor