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HomeMy WebLinkAbout2010/08/09 - ADMIN - Minutes - City Council - Study Session Jfl Sto Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL STUDY SESSION ST LOUIS PARK, MINNESOTA AUGUST 9, 2010 The meeting convened at 6 30 p m Councilmembers present Mayor Jeff Jacobs, Phil Finkelstein, Anne Mavity, Julia Ross, Susan Sanger, and Sue Santa. Councilmembers absent Paul Omodt Staff present. City Manager (Mr Harmening), Deputy City Manager/Human Resources Director (Ms Gohman), Director of Parks & Recreation (Ms. Walsh), Police Chief (Mr Luse), Fire Chief (Mr. Stemmer), Controller (Mr. Swanson), Finance Supervisor (Mr Heintz), Director of Public Works (Mr Rardin), Chief Information Officer (Mr Pires), Community Development Director (Mr Locke), Planning/Zoning Supervisor (Ms. McMonigal), Senior Planner (Mr Walther), Communications Coordinator (Mr Zwilling), Organizational Development Coordinator (Ms Gothberg), and Recording Secretary (Ms Hughes) Guests Mike Clark (KKE Architects), Matt Johnson, Matthew Streed, Jenni Tuttle, and Brian Hook 1. Future Study Session Agenda Planning — August 23 Mr Harmening presented the proposed study session agenda for August 23rd 2. 2011 Budget Discussion Mr Harmening presented the staff report and advised that the primary policy questions for Council consideration include the amount the Council wishes to certify as its preliminary property tax levy and the amount the Council wishes to set foi the 2011 franchise fee adjustment He explained that based on earlier budget assumptions, which included a $500,000 property tax levy adjustment, staff determined there would be an approximate $412,000 gap in the 2011 budget, following additional budget refinements, department directors have now completed work on their budgets and the 2011 budget is a balanced budget. He stated that the combined preliminary General Fund/Park and Recreation Fund budget reflects a 1 6% increase from 2010 to 2011 and that even with a 1 6% increase in the budget, most people would see a decrease in their City property tax He asked the Council to acknowledge the efforts of the department directors in working to reduce their budgets while still maintaining services Mr Swanson presented a summary of revenues and expenditures for the General Fund and Park and Recreation Fund and pointed out that the budget is balanced with no use of fund balance He noted that the proposed budget includes planned salary increases based on previous labor negotiations. He also presented a summary of the budget by department, which includes a 2012 projected analysis, showing an approximate $102,000 gap for 2012 This included several assumption including proposed General and Park and Recreation fund levy increase of$500,000 He discussed the City's ten year tax levy history which indicates a ten year average tax levy of 6 08%. He also discussed the Study Session Minutes -2- August 9, 2010 City's debt service levy requirements for 2010-2020 He then presented six separate levy options for 2011 and stated if Council chose a $522,000 levy adjustment, or 68%, based on the budget assumptions, it is projected that the City would require a 7 36% levy increase in 2012 due primarily to the fire station debt He reviewed the impact of a .68% levy increase, a 2 95% levy increase, and a 4.88% levy increase on the City's share of estimated property taxes which shows an overall decrease in the City's portion of estimated property taxes, the maximum levy allowed under the statute is 4 88% He indicated that the City is able to show a decrease in its portion of property taxes because of the decertification of two Tax Increment Districts which puts those paicels back on the tax rolls enabling to spread out the City tax portion to more parcels Councilmember Finkelstein requested information regarding the impact to the budget if Golden Valley terminates its contract for dispatch services. Mr. Harmening stated that the 2011 budget assumes the City still has a contract with Golden Valley for 2011, if that contract is terminated, dispatch staff will be reduced from ten to seven positions He added that an additional budget gap of$80,000 will need to be filled and staff proposes to use $40,000 of the City's annual E-911 fund revenues and the remaining $40,000 gap will be filled through other adjustments in the Police Department's budget Councilmember Mavity asked if there will be other G.O bond requirements through 2020 that are not currently outlined in the debt service levy requirements and expressed concern that there may be other projects in the future requiring bond issuance. She also expressed concern that some of the future projects that require bonding are not reflected in the budget Mr Harmening replied that the budget does not assume any other projects other than the fire stations project He stated that as of 2016, there are two bond issues coming off, staff has worked hard to utilize a "pay as you go" approach • Mr Swanson stated that the City's long range financial management plan and GASB rule #54 rule provides an opportunity for the City to have more restrictive fund balance designations and to designate projects for a particular reason, without exceeding the Council's policies on fund balances Councilmember Mavity asked what, if anything, will be visible to iesidents in terms of changes in services based on proposed budget cuts Mr Harmening stated that residents will not see any difference in services and no services are being taken out of the budget Councilmember Sanger expressed concern about the City's ability to continue to provide services on a barebones budget She stated that as the economy improves, additional staff positions can be added, but felt that residents will come to expect the City can continue to operate on a thin budget with no cuts in services Councilmember Santa stated that she felt the City needs to do a better job of informing residents of the budget cuts and sacrifices being made Study Session Minutes -3- August 9, 2010 Ms. Gohman stated that staff is currently working on posting information regarding the City's budget on the website. Councilmember Ross asked if there is anything the Council should be considering in terms of the impact of State budgetary cuts on the school district and the possibility that the school district will look to the City for additional funds. Councilmember Mavity stated that she would prefer to utilize the highest possible levy increase that will allow the City to meets its ongoing budget needs and that has minimal impact to residents. Mr. Heintz presented an overview of the proposed franchise fee adjustment of $.50 or $.75 and anticipated revenue estimates. He also presented an analysis of franchise fees compared to other cities, and pointed out that the franchise fees are used to fund the Pavement Management Program. He discussed the Pavement Management Fund and the Capital Replacement Fund and current options for long term sustainability of these funds. Councilmember Sanger requested a comparison between the $1.75 and $2.00 franchise fee and its impact on the 2011 budget, without making assumptions for 2012 and beyond. She stated she preferred to increase the franchise fee as much as possible because the utility companies may not permit further increases in the future. Mr. Heintz then presented the Park Improvement Fund and stated that this Fund will experience some budget deficits in the next ten years. The Council discussed options for maintaining various fund balances and options for utilizing the tax levy. It was the consensus of the City Council to prepare the 2011 budget based on the maximum allowable levy, subject to further consideration by the Council It was the consensus of the City Council to prepare the 2011 budget utilizing a $.75 per month increase in the franchise fee. Councilmember Mavity reiterated her concern that because the budget is quite thin, she would welcome an opportunity to review a 2011 budget that utilizes a higher bottom line. Councilmember Ross agreed, particularly with respect to public safety. 3. Fire Station Projects Mr. Walther presented the staff report and introduced Matt Johnson, Mike Clark, Matthew Streed, Jenni Tuttle and Brian Hook. Mr. Clark presented the proposed site design and floor plan for Station No. 1 and explained that this station will have three drive-through bays accessed via Oxford Street for returning emergency Study Session Minutes -4- August 9, 2010 vehicles; emergency response vehicles will leave the station using the Wooddale Avenue cul-de-sac. He also presented two concept images of Station No. 1 and noted that they are working with staff to incorporate more classical fire station elements to the design. He then presented the proposed site design and floor plan for Station No. 2 and stated that this station will also have 80' drive-through bays and the apparatus bays are set further away from Louisiana Avenue. He added they are working into the plan the ability to adjust the property line to the south to make better use of the shared access agreement with Walgreen's. He then presented a concept image of Station No. 2. He discussed the sustainability initiatives being reviewed, including use of the State's B3 guidelines as well as LEED guidelines, use of geothermal systems, use of the Xcel Energy design assist program, use of natural lighting, infiltration and stormwater management, and indoor air quality measures He indicated that at this time, a geothermal system falls outside the current budget. He explained that the Xcel Energy design assist program is a free service intended to assist with determining the cost effectiveness of some design solutions and includes rebate programs. He presented the overall project schedule and indicated that the next phase will include design development Brian Hook of Kraus Anderson Construction stated that they will provide updated budget estimates to City Council at the end of the Design Development Phase and prior to Council's approval to send the project out for bids, currently anticipated to occur in February 2011. He indicated that the base project budget for both stations is currently estimated at $14,686,000. He stated that the addition of one additional bay at each station adds $414,500 to the project, the addition of additional City storage at Station No. 1 adds $395,000 to the project, and adding alternate geothermal systems will add an additional $302,000 to the project budget. He noted that the amount for the geothermal systems includes $27,000 for exploratory costs at the front end to allow for an evaluation of the cost effectiveness of a geothermal system. He stated the current project budget estimate with all the alternates is $15,799,000. Mr. Walther stated that staff requested and received a proposal from KKE to hire a third party to review the cost estimates of the project; that third party review will cost $15,000 Mayor Jacobs stated that he felt the decision about Oxford Street being a two-way street should be part of the neighborhood process. Mr. Clark stated that the working group has discussed Oxford Street and the Fire Department likes the operational benefits of having drive-through bays; the Fire Department is willing to accept having to drive around the block to access the site on their return trips. Councilmember Mavity asked if Oxford Street could be a two-way street to the fire station driveway Mr. Walther indicated that may be possible. Councilmember Ross asked if the City anticipates that there would be a significant energy savings per year with the use of geothermal. Mr. Walther replied that the energy savings will vary based on the site and the building, and this needs to be explored further to determine the payback, staff anticipates it will cost approximately Study Session Minutes -5- August 9, 2010 $30,000 to test and explore using geothermal systems at the fire stations. Jenni Tuttle stated that on two current projects KKE is working on the payback for geothermal is approximately 20 years. Councilmember Finkelstein stated that because the City is the general contractor on the project and is utilizing a construction manager, he supported an independent, third party review of the cost estimates for the project. It was the consensus of the City Council to consider a project budget larger than originally anticipated. It was the consensus of the City Council to proceed to the next design phase of the project. It was the consensus of the City Council to direct staff to investigate the suitability, costs, and payback of using geothermal renewable energy systems at the fire stations. It was the consensus of the City Council to include the "alternate" apparatus bays. It was the consensus of the City Council to direct staff to work with the neighborhood and pursue creative options for traffic on Oxford Street, including two-way traffic. It was the consensus of the City Council to direct staff to provide further information to the Council regarding storage needs. It was the consensus of the City Council to direct staff to hire an independent, third party for the purpose of reviewing the cost estimates for the project. Mr. Walther stated that neighborhood meetings are scheduled for September 16`h. He indicated that design development will commence followed by formal Planning Commission and Park Board reviews, as well as the analysis on the geothermal systems He advised that KKE recently announced that it is merging with DLR Group and introduced Matt Johnson from DLR. Mr. Johnson stated that DLR is excited about the opportunities presented by the merger with KKE. He indicated that DLR is a 50 year practice with 500 people in 22 locations He noted that DLR has structural and mechanical engineers in-house who will be available for this project. He added that the current fire station project team will not change following the merger 4. Zoning Ordinance Amendment for Multi-Family Residential in the Office Zoning District Ms. McMonigal presented the staff report and reviewed the provided ordinance changes based on the Council's discussion on August 2"d. She also presented a summary of allowed uses and the approval process required. She stated that in this case, the ordinance is proposing to amend the conditions that go along with allowing multi-family residential with a PUD in the Office District. Study Session Minutes -6- August 9, 2010 Councilmember Sanger stated that her concern stems from the fact that the ordinance will be changed to allow something that has more density and not enough green space requirements She indicated she would like to figure out a way to add in additional green space requirements and to have a way for the Council to retain those requirements in the ordinance for other sites. Mr. Locke reminded the Council that it retains complete discretion and control over zoning and any future rezoning in the City based on the Comprehensive Plan. He noted the suggested additional provisions in the staff report help distinguish appropriate locations for the multiple-family residential in the office zoning district These will give the city more discretion in approving multiple-family in the office zones. Councilmember Finkelstein stated that with light rail, there will be a lot of pressure to put in high density in different areas throughout the City and there may be Office Districts in the City that are torn down and replaced with proposals for high density buildings. Ms. McMonigal and Mr. Locke stated that those areas are not zoned "office" and staff is working on a "Business Park" zoning district for the station areas. Councilmember Mavity noted that the proposed ordinance amendment removes the restriction on first and second floor housing units and removes the maximum density percentage restriction She also pointed out that the ordinance provisions for multiple-family dwellings states that access to off- site parks and open space, plazas and pedestrianways shall be provided. Councilmember Sanger stated that the cap is removed on the maximum number of units allowed, thus allowing a much denser project than has been seen in the past, without adequate compensation for green space. She stated that this might work at the West End development, but it might not work for the general population at large and, therefore, she is reluctant to remove the maximum density cap. Councilmember Mavity stated that Council will likely have to review the overall zoning categories as the City gets pressure from the rail stations and that review can be done in a more methodical way in the future. Mr. Locke reiterated that the ability to rezone property rests entirely with the City Council. He stated that when staff reviewed the West End project, it was felt that the simplest and most controlled way to allow the development was to modify the Office Zoning District because the opportunities for development in the overall Office Zoning Districts are limited. He indicated that staff drafted some additional conditions that would limit where multiple-family residential could be located in the Office Zoning District, which must be part of a larger setting where a developer can truly meet the already existing conditions of access to parks, etc Councilmember Finkelstein stated that he does not want to see the West End project delayed. He agreed that Council should have a further discussion regarding future planning and zoning as it relates to the light rail station areas. Study Session Minutes -7- August 9, 2010 It was the consensus of the City Council to direct staff to revise the Zoning Ordinance as discussed and to bring the Zoning Ordinance Amendment to the City Council for second reading. 5. Communications (Verbal) Councilmember Mavity requested further information regarding the allocation of affordable housing need that shows 501 new affordable units needed in the City. Mr. Locke stated that a formula is utilized that takes into account a number of factors, including the proximity of the City to jobs, the level of transit available, and how much affordable housing is currently available in the City. He added that this item will be discussed further with the Council at a future meeting. Mayor Jacobs requested that the City Council provide feedback on the meeting. The City Council agreed that it was helpful to have staff review the policy questions prior to staff presentations. The City Council expressed a desire to spend more time on the budget and to have staff provide more detailed explanations of the budget, e.g., enterprise funds. Councilmember Sanger requested more substantive conversation with staff regarding the level of services the proposed budget will provide. She stated that she would prefer to have staff prepare the budget in such a way that sets forth the needs of the City and the tax levy required to meet those needs. The meeting adjourned at 9:50 p.m Written Reports provided and documented for recording purposes only. 6. Proposed Gambling Ordinance Amendments 7. Metropolitan Livable Communities Act Local Housing Incentives Account: Affordable and Life Cycle Housing Goals for 2011-2020 111 i L i Nancy Stroth, Ci Clerk Jeff J:cis . , ,yor