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HomeMy WebLinkAbout07-13-2020-SWS City of Arden Hills ▪1245 West Highway 96 ▪ Arden Hills Minnesota 55112 Phone 651.792.7800 ▪ Fax 651.634.5137 ▪ www.cityofardenhills.org Request for Special City Council Work Session A special meeting may be called by the Mayor or by any two Councilmembers. Reason for meeting: 1A. State of the City Update 1B. Pavement Resurfacing Discussion 1C. Lake Johanna Fire Department Station Cities Agreement Update 1D. COVID-19 Update Requested Date: 7/13/2020 Requested time: 5:00 pm Open meeting X Closed meeting Signature of person(s) making request: 7/09/2020 ________________________ Mayor or Council Member Date Council Member Date -This section to be completed by City staff- Date received: 7/09/2020 Date meeting to be held: 7/13/2020 Time of meeting: 5:00 pm Location: City Hall All necessary posting and notices have been completed. 7/09/2020 Signature of City Clerk Date Address: Mayor:1245 W Highway 96 David Grant Arden Hills MN 55112 Phone: Councilmembers: 651-792-7800 Brenda Holden Special City Council Work Fran Holmes Website: Session Dave McClung www.cityofardenhills.org Agenda City Hall City Vision Arden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well-maintained infrastructure, fiscal soundness, and our long-standing tradition as a desirable City in which to live, work, and play. by joining via Zoom T o join the Zoom Meeting via your computer, click this link (or copy and paste it https://us02web.zoom.us/j/89845072493 CALL TO ORDER 1.AGENDA ITEMS 1.A.State Of The City Update Dawn Skelly, Communications Coordinator Documents: MEMO.PDF 1.B.Pavement Resurfacing Discussion Todd Blomstrom, Public Works Director/City Engineer Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF ATTACHMENT D.PDF 1.C.Lake Johanna Fire Department Station Cities Agreement Update Dave Perrault, City Administrator Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF 1.D.COVID-19 Update Dave Perrault, City Administrator Documents: MEMO.PDF 2.COUNCIL/STAFF COMMENTS ADJOURN ATTACHMENT B Example of Average Prices for Resurfacing Project Attachment D AGENDA ITEM 1C MEMORANDUM DATE: July 13, 2020 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: Lake Johanna Fire Department Station Cities Agreement Update Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A For Council Consideration The Council may consider providing further feedback on the draft three city agreement regarding the Lake Johanna Fire Department station search. Background At its June work session, the City Council discussed the contract cities agreement that would lay the groundwork for the purchase of land adjacent to the Anderson Center for a future fire station. The memo from the June work session is attached for background information (see Attachment A). At the work session, the City Council requested the following language changes be made: any one of the three cities could bond for a station when it is time for construction, bond payments relating to the construction of a new station will be set at the time the bond is issued and will be fixed for each city for the duration of the bond, a date for future construction was removed and replaced with unanimous consent of the three cities, the language regarding municipal fees was struck assuming the normal development fees will be charged, and language was added that would allow the City of Arden Hills to purchase the land and future buildings should the station no longer be used to service Arden Hills. Since the June work session, the preliminary and final plat for the new lots was approved by the City Council allowing Bethel to subdivide land, this approval also started the timeframe for the The fire department has until August 21, 2020 to complete their due diligence; if they wish to continue with purchasing the land the closing date would need to be on or before September 21, 2020. The elected representatives on the LJFD Fire Board and City Administrators/Managers met (via Zoom) recently to discuss the progress of the agreement and see where each City stands. The City Administrator and Councilmember McClung were on the call, and explained the position of the City as it stands today. The other two cities, Shoreview and North Oaks, reviewed the updated draft agreement (see Attachment B), and had the following suggestions and/or concerns. -Station Funding: both Shoreview and North Oaks had concerns about leaving the future debt service payments for a fire station fixed at the time of bonding for either having one city bond for the entire project or having each city bond individually. Their preference would be to have the cost share formula remain in place for the debt service payments or utilize Met Council 2040 breakdown, the 2040 population forecasts, and the change between today and 2040. Note: this is only the population changes, thnumber of households, market value, and fire calls. One thing to consider for the formula is it is based on a five-year rolling average, so if any one city were to experience dramatic swings in population, fire calls, etc. it would not impact that city immediately, but would have a lagging effect as the average catches up over a five-year period. Council may discuss and give direction on whether or not it is open to utilizing the current funding formula that would change annually, a formula based on estimates, or sticking with the current language of the allocation based on the percentages at the time of bonding. -Construction Timeline: the current language stipulates that construction will begin upon the unanimous consent of the three cities, and does not include a specified hard-start for construction. Shoreview and North Oaks had concerns about purchasing property outside of their respective cities without assurances of a construction date. The initial date of June 30, 2025 was discussed, the other two cities may consider pushing that back slightly, but did not feel comfortable with an agreement that did not have a specified date. Council may discuss and give direction on whether or not it wants to include a hard-date for the start of construction or leave the language as it currently reads. The above two issues appear to be significant sticking points between the three cities and if y to purchase the land. -Future ownership of the fire station: currently the language in the draft agreement reads that if the LJFD were to no longer use the fire station and/or serve Arden Hills, that Arden Hills could purchase the land and buildings from the other cities by reimbursing them for their costs plus inflation. The other cities were comfortable with this notion, but suggested two items: (1) noting that the buildings/land would first be passed to a successor organization that serves the three cities if LJFD were to dissolve (this is similar to how current LJFD assets would be distributed under their current JPA) and (2) also putting a provision noting that should the station not get built that the three cities could choose to sell the land and the proceeds would be distributed based on the proportional share that each city paid. These changes are not reflected in the current draft, but if Council is comfortable staff can add language that would reflect these additions. Lastly, as mentioned at the last work session, ultimately a Joint Powers Agreement will be needed between the three cities in-order to bond for the project. While this JPA will be created closer to the actual construction of the station, the cities contract being discussed today will likely form the basis of the JPA. The JPA will also establish ownership, roles and rvices, but the cities will have flexibility to create a JPA that is suitable for the three cities. Attachment Attachment A: June 15, 200 LJFD Memo Attachment B: Redline Draft Three City Agreement for Future LJFD Station Attachment C: Clean Draft Three City Agreement for Future LJFD Station Attachment A AGREEMENT BETWEEN CITY OF SHOREVIEW, MINNESOTA, CITY OF ARDEN HILLS, MINNESOTA, AND CITY OF NORTH OAKS, MINNESOTA FOR THE LAKE JOHANNA FIRE DEPARTMENT FIRE STATION PROJECT THIS AGREEMENT is made and entered into the ___ day of __________, 2020 by and between THE CITY OF SHOREVIEW, a municipal corporation and political subdivision of the State of Minnesota, THE CITY OF ARDEN HILLS, a municipal corporation and political subdivision of the State of Minnesota, and THE CITY OF NORTH OAKS, a municipal corporation and political subdivision of the State of Minnesota (the three cities maybe referred to . WHEREAS, each City is responsible for providing fire protection and prevention services for the people and institutions within its boundaries; and WHEREAS, each City contracts with Lake Johanna Fire Department to provide each ; and WHEREAS, the costs of said fire protection and prevention services are allocated pursuant to contracted service agreements between the Cities and Lake Johanna Fire Department; and WHEREAS, Lake Johanna Fire Department conducted a needs analysis that reviewed the adequacy of Fire Station number 4 and identified future department facility needs; and WHEREAS, the needs analysis concluded that the existing Fire Station number 4 located at 3615 Victoria Street in the City of Shoreview was undersized and had many deficiencies; and WHEREAS, the needs analysis concluded that it would not be feasible to expand the station due to the limited lot size and subpar access to Victoria Street north of the railroad tracks which may impact response times; and WHEREAS, Lake Johanna Fire Department reviewed potential property locations in southern Shoreview and Arden Hills; and WHEREAS, Lake Johanna Fire Department identified vacant property owned by Bethel new fire station; and WHEREAS, the Property is large enough to accommodate headquarters for Lake Johanna Fire Department and has improved access ideally situated to cover southern Arden Hills and Shoreview as well as the entire service area for Lake Johanna Fire Department; and WHEREASrized the Fire Chief to negotiate and execute a letter of intent to purchase the property from Bethel University; and WHEREAS, in early April 2020, Lake Johanna Fire Department and Bethel University executed a letter of intent to purchase the Property for a purchase price of $1.35 million; and WHEREAS, the letter of intent also requires Lake Johanna Fire Department to contribute one third of the cost, up to a maximum of $325,000, to relocate an access road on the property; WHEREAS, the purpose of this agre the purchase of the Property and the construction of improvements on the Property ; and WHEREAS, the new fire station would be owned and operated by the Lake Johanna Fire Department to serve the three contract cities of Arden Hills, North Oaks, and Shoreview. AGREEMENT NOW, THEREFORE, in consideration of the mutual undertakings herein expressed, the City of Shoreview, the City of Arden Hills, and the City of North Oaks agree as follows: 1 Term of Agreement 1.1 Effective date: This Agreement and any amendments thereto shall be in full force and effect upon the filing of a certified copy of the resolution approving this Agreement by each City. Said resolutions shall be filed with the Shoreview City Attorney who shall notify each City in writing of its effective date. 1.2 Expiration date: This Agreement expires upon the Bond, issued pursuant to paragraph 2.3, being repaid in full. 2 Agreement between the Parties 2.1 Cost. The cost of the land purchase, access road relocation, and property improvements will be funded by a $300,000 contribution from the lake Johanna Fire Department and by contributions from each City allocated proportionally through the current cost share agreement for fire department operations and capital costs. 2.2 Cost share formula. The cost share formula contribution for the land acquisition, but which is currently defined as 25% population, 25% households, 2.2 40% fire calls, and 10% assessed value. 2.3 Bond issuance. At the time financing is needed for the construction of a new station, the financing will be provided by one of the two following methods: Should all three cities mutually agree, the City of Arden Hillsone of the cities will provide financing for the cost to construct a station, including any costs associated with the financing, and each city will annually reimburse the City of Arden Hillsthat 2 City for their portion of the debt service payment based on the cost formula at the time of bonding. Should a station be constructed in the allotted timeline for reimbursement of the land acquisition costs, Arden Hillsthe City will include the land acquisition costs in the financing and each City will be repaid via the financing proceeds for their portion of the land acquisition. If the Station is not constructed in the time frame that is necessary to include the property acquisition costs as part of the financing, each city will be responsible for their proportionate share of the property acquisition costs in accordance with the cost share formula in effect at the time. or Each City will be responsible for providing their financial contribution, bond proceeds or otherwise, when needed for the construction of a new station. 2.4 Bond repayment. The bond issue will be repaid through annual appropriations by each City consistent with the cost share formula at the time of the bond issuance. Should one city bond for the entire project, the annual payment for debt service from the other cities will not be recalculated based on an updated formula in subsequent years. calculated and adjusted annually to account for growth and development in each City. 2.5 Station Construction. Station construction will begin no later than June 30, 2025, unless an alternative date is mutually agreed upon by all three citiesbegin upon the unanimous consent of the parties. . 2.6 Development Approvals. The City of Arden Hills will review the proposed project as part of its normal development process. 2.7 Municipal Fees. The City of Arden Hills will charge its customary development fees unless the City of Arden Hills chooses to waive any of the said fees; these fees include, but are not limited to, Metropolitan Council WAC/SAC, local WAC/SAC, building permit and plan review, and park dedication fees. At the discretion of the Parties, those fees may also be included in the Station financing or allocated per the cost share formula. 2.7 Should the Lake Johanna Fire Department no longer serve the City of Arden Hills or no longer use, occupy, or otherwise cease to operate in the fire station, the City of Arden Hills will have the option to reimburse the other two cities, Shoreview and North Oaks, for their respective contributions to the purchase of the land, construction of the fire station, and any applicable capital improvements to the station plus inflation as measured by the Consumer Price Index (CPI) and take ownership of the land and associated buildings. 3 3 Assignment, Amendments, Waiver, and Contract Complete 3.1 Assignment. No party may assign nor transfer any rights or obligations under this Agreement. 3.2 Amendments. Any amendment to this Agreement must be in writing and will not be effective until it has been signed and approved by the same parties who signed and approved the original agreement, their successors in office, or other individual duly authorized. 3.3 Waiver. If any party fails to enforce any provision of this Agreement, that failure does not waive the provision or the right to enforce it in the future. 3.4 Contract Complete. This Agreement contains all negotiations and agreements between the Cities. No other understanding regarding this Agreement, whether written or oral, may be used to bind either party. 4 Liability Each City will be responsible for its own acts and behavior and the results thereof and actions. The Minnesota Municipal Tort Claims Act, Minn. Stat. Ch. 466, governs the liability. 5 Venue Venue for all legal proceedings involving this Agreement, or its breach, must be in the appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota. 6 Signatures This Agreement may be executed in several counterparts, and all so executed shall constitute one Agreement, binding on each City notwithstanding that each City may not be a signatory to the original of the same counterpart. IN WITNESS WHEREOF, the Cities have hereunto set their hands the day and year first above written. CITY OF SHOREVIEW 4 By: Mayor SEAL DATED: ___________________, 2020 ATTEST: City Clerk 5 CITY OF ARDEN HILLS By: Mayor SEAL DATED: _________________, 2020 ATTEST: City Clerk 6 CITY OF NORTH OAKS By: Mayor SEAL DATED: _________________, 2020 ATTEST: City Clerk 7 Attachment C