HomeMy WebLinkAbout02/08/2006 Council Minutes4v
.CITY COUNCIL WORK SESSION FEBRUARY 8, 2006
APPROVED
1
2 CITY OF LINO LAKES
11/ 3 MINUTES
4
5 DATE : February 8, 2006
6 TIME STARTED : 5:40 p.m.
7 TIME ENDED : 9:50 p.m.
8 MEMBERS PRESENT : Councilmember Carlson,
9 Reinert, Stoltz and Mayor Bergeson
10 MEMBERS ABSENT : O'Donnell,
11
12 Staff members present: City Administrator, Gordon Heitke; Community Development
13 Director, Michael Grochala; Chief of Police, Dave Pecchia (part); Community
14 Development Coordinator, Mary Alice Divine (part); Finance Director, Al Rolek (part);
15 Environmental Specialist, Marty Asleson (part); Public Services Director, Rick
16 DeGardner (part); and City Clerk, Julianne Bartell
17
18
19 ENVIRONMENTAL BOARD GOALS
20
21 Ms. Mary Jo O'Dea, Environmental Board Chair, came forward and reviewed the
22 Environmental Board Goals 2006 in detail. She noted staff is recommending approval of
23 the goals.
24
• 25 Councilmember Reinert requested copies of the Environmental Board recommendations
26 for all future development projects.
27
28 This item will appear on the regular Council agenda Monday, February 13, 2006, 6:30
29 p.m.
30
31 YMCA
32
33 Community Development Director Grochala stated on January 23, 2006 the City Council
34 approved a PUD Final Plan for the Chain of Lakes YMCA. The approved plan was for a
35 first phase of development that will include 37,304 square feet, with future phases
36 proposed to include a gymnasium expansion of approximately 4,200 square feet, a leisure
37 pool of approximately 5,400 square feet, and a multi-purpose room.
38
39 Community Development Director Grochala advised in 1999, the City and the YMCA of
40 Greater Saint Paul formed a partnership for the purpose of constructing a YMCA in Lino
41 Lakes. The City's participation was in response to the 20/20 Vision process and the
42 citizen survey, which indicated strong support for a community center.
43 • 77% favored the construction of a community center
44 • 59% supported issuance of construction bonds to build a community center
45 • 73% supported operation of all or parts of a community center by a private
46 company
•
•
CITY COUNCIL WORK SESSION FEBRUARY 8, 2006
APPROVED
1
2 Community Development Director Grochala stated in addition, the City was attempting
• 3 to create a mixed use downtown that would be a source of community identity and pride,
4 and the YMCA was considered a vital link in providing that identity and helping to spur
5 further commercial development in the downtown.
6
7 Community Development Director Grochala explained that in the original agreement
8 approved in 1999, the City agreed to financial participation of $1.5 million in cash for
9 construction, plus land and infrastructure estimated at the time to be approximately
10 $500,000, for a total cash contribution of $2 million. The land was approximately 7 acres
11 that had been removed from the regional park in a "land swap" that was approved by the
12 Metropolitan Council. Through the swap the city received 14 acres for the city hall and
13 YMCA at a cost of $300,000.
14
15 Community Development Director Grochala stated in turn, the YMCA agreed to build
16 approximately 37,000 square feet that included a "teen center, gym, indoor pools,
17 running/walking track, cardiovascular/strength training area, aerobic studio, family
18 program space and Child Watch. Building design will provide for future expansion
19 opportunities. " City residents would receive discounted membership fees and "open
20 community" days where all residents could use the facilities. The Council considered this
21 joint venture a way to get a family oriented community center for approximately 30 cents
22 on the dollar with no long-term operations and maintenance costs.
23
24 Community Development Director Grochala advised that in 1999 Springsted, Inc. studied
• 25 the financial implications of the city's commitment and analyzed financing options. At
26 the time of the study, the YMCA had completed market research that indicated a 46,000-
27 square foot facility would better serve the community, for a cost of approximately $6
28 million. The YMCA capital funding was to be limited to $2 million. The city's cash
29 contribution was estimated to be $2 million total. The remaining was to be from
30 community contributions.
31
32 Community Development Director Grochala stated an updated analysis in 2004 by
33 Springsted recommended using tax abatement, a tool that was not available in 1999, to
34 pay for the city's $1.5 million cash contribution. The City Council established a Tax
35 Abatement District in the southern portion of the Woods Edge development to capture the
36 city portion of taxes generated by new development. Springsted estimated the cost to a
37 taxpayer in a $228,000 home to be $20/year, declining over the life of the bonds, but
38 growth in residential tax base could offset any increase in the tax rate.
39
40 Community Development Director Grochala noted the City has also benefited from the
41 development of Legacy at Woods Edge with Hartford Group as the master developers. If
42 the YMCA had been constructed prior to Woods Edge being underway, the city would
43 have been obligated for the costs of construction of Town Center Parkway, including
44 improvements to the Lake Drive intersection, plus extension of utilities, to the YMCA
•
j . CITY COUNCIL WORK SESSION FEBRUARY 8, 2006
APPROVED
1 site. The Woods Edge development required these infrastructure improvements, which
2 are fully assessed to Hartford Group, thus relieving the city of that obligation.
• 3
4 Community Development Director Grochala advised the YMCA has spent years
5 fundraising in the community, and has approximately $6.3 million available for
6 construction. However, construction costs have risen considerably since 1999. A
7 community capital campaign is underway to attempt to raise an additional $800,000
8 needed to build the full sized gym. While continuing to try to raise funds, the Y board
9 concluded the first phase needs to be in the ground this year, and submitted for approval
10 what could be built with $6.3 million. This facility includes a half -sized gym, and the
11 leisure pool and multi-purpose room were omitted, while recognizing these facilities
12 could be added in the future. The exterior facade of the facility also falls short of the
13 architectural and materials standards set for the Woods Edge downtown development.
14
15 Community Development Director Grochala continued indicating City Council members
16 have expressed their concern with the size of the first phase of the YMCA facility, the
17 lack of a leisure pool which is attractive to the young family demographic in Lino Lakes,
18 and the lack of architectural appeal of the facility.
19
20 Community Development Director Grochala stated staff has discussed with the YMCA,
21 Springsted, and Kennedy & Graven options that might be available to provide the size
22 and type of facility that City Council and the community had anticipated. It is estimated
23 that currently $1,850,000 is needed to do the building that was approved, with the
24 addition of the leisure pool.
• 25
26 Community Development Director Grochala explained the following alternative funding
27 scenario that provides $1,850,000 to build the leisure pool in the first phase, plus
28 additional upgrades to the facade of the building.
29
30 1. Part of the 2005 updated agreement called for a 5 -year, 10 percent discount to
31 Lino Lakes residents on their monthly membership fees at the YMCA. While this
32 is a considerable benefit to residents who join the Y, it restricts the ability of the
33 YMCA to take on more debt, and benefits only residents who become members. If
34 that portion of the agreement were eliminated, it would enable the YMCA to take
35 on an additional $1 million in debt.
36
37 2. Springsted updated its analysis of the capacity of the Tax Abatement District,
38 based on assumptions of anticipated values and phasing of the southern portion of
39 Woods Edge. A 15 -year abatement will generate $2,406,845.
40
41 3. The city is currently committed to 15 -years of abatement for its $1.5 million
42 contribution. There is capacity available to provide the additional $850,000 to
43 meet the current gap in funding. This potential additional contribution would be
44 capped at $850,000. Any additional funds raised by the YMCA would lower the
•
CITY COUNCIL WORK SESSION FEBRUARY 8, 2006
APPROVED
1 city's commitment. The amount of the city's additional contribution would be
2 based on final bid numbers and additional funds raised through fundraising.
• 3
4 4. Because the city did not have to find a funding source for extension of road and
5 utilities to the YMCA, the total city contribution, in today's dollars, remains
6 approximately the same 30 cents on the dollar that was originally anticipated in
7 1999.
8
9 5. The City Parks and Recreation Department is currently working with the YMCA
10 for additional joint programming and opportunities for all residents to be able to
11 utilize the facility.
12
13 Community Development Director Grochala stated staff is seeking Council direction
14 regarding this alternative, based on the benefits gained from completing the YMCA
15 leisure pool with phase one, rather than some undetermined time in the future.
16
17 Actions required to accomplish this would include:
18
19 1. City Council adds to the Monday, February 13 agenda a resolution calling for
20 a public hearing to grant a property tax abatement and to amend the business
21 subsidy agreement to the with the YMCA
22 2. Hold the public hearing on Monday, February 27 and consider adoption of the
23 property tax abatement and amendment to the business subsidy agreement.
24
25 Mayor Bergeson stated the two issues are abatement and the proposal to not give discount
26 memberships to residents.
27
28 Representatives answered Council questions regarding fees, programs capital fundraising
29 efforts, amenities and memberships. The Council questioned the value of the YMCA to
30 residents if the 10% discount for memberships to residents is eliminated.
31
32 The representatives from the YMCA indicated they were meeting with the local YMCA
33 Board tomorrow evening and would discuss ways to open up the facility to non-members
34 in the community throughout the year.
35
36 Mr. Steve Bubal, Kennedy and Graven, explained the abatement process noting the
37 increase in the amount of abatement is workable and will not set a precedent for other
38 abatements.
39
40 Ms. Terry Heaton, Springsted, stated she is recommending the abatement tool because it
41 spreads the debt over the whole tax base and also gives the City the lowest interest rate.
42 She noted the City would save approximately $150,000 over the life of the bonds by
43 using tax abatement.
44
•
• • ,CITY COUNCIL WORK SESSION FEBRUARY 8, 2006
APPROVED
1 The resolution calling for a public hearing to grant property tax abatement and to amend
2 the business subsidy agreement with the YMCA was added to the regular Council agenda
3 Monday, February 13, 2006, 6:30 p.m.
4
5 ADVISORY BOARD APPOINTMENT PROCESS
6
7 City Administrator Heitke advised an announcement of the application period for
8 advisory board appointments was published in the Quad Press on November 15, 2005,
9 with the application deadline of December 9, 2005. The City Council chose to extend the
10 application period at its work session of January 4, 2006. This extended application
11 period was published in the newspaper on January 17, 2006, with the application deadline
12 of January 31, 2006.
13
14 City Administrator Heitke noted the number of applicants for each advisory board,
15 exceed the number of vacancies, so the Council can move forward with in the
16 appointment process. He advised one additional application was found on the
17 receptionist's desk the morning of February 1, 2006.
18
19 City Administrator Heitke stated staff is seeking direction as to when the Council wishes
20 to interview applicants. Also, staff is seeking direction from the Council as to the
21 handling of the application, which was found on the receptionist's desk at 8 a.m. on
22 February 1. Staff normally administers deadlines to be the end of the workday. Another
23 person did not apply since they could not get their application to City Hall before closing
24 time on the deadline day.
• 25
26 The Council discussed the application that was received on February 1. Councilmember
27 Reinert and Councilmember Stoltz indicated the applicant should not be interviewed
28 because the application was not received before the deadline. Councilmember Carlson
29 stated she believes the applicant should be interviewed because there was not a time of
30 day posted on the deadline. Mayor Bergeson indicated he did not mind if the application
31 was or was not interviewed.
32
33 The Council gave no clear direction to staff regarding this matter.
34
35 Council directed staff to schedule advisory board interviews the nights of February 20 and
36 22 at 5:30 p.m. The Council also suggested staff shortens incumbents' questions and
37 streamline interviews.
38
39 SUPER RINK PARTICIPATION
40
41 Councilmember Carlson stated she may have a conflict of interest regarding this issue and
42 would like an opinion from the City Attorney. She excused herself to the back of the
43 room to listen to the discussion.
44
•
•
•
CITY COUNCIL WORK SESSION FEBRUARY 8, 2006
APPROVED
1 City Administrator Heitke advised during the "Super Rink Request" discussion at the
2 January 18, 2006 Council work session, several questions were posed. Attached to the
3 staff report are Mr. Erickson's responses to those questions.
4
5 City Administrator Heitke noted there is a special clause in the draft resolution allowing
6 the City of Lino Lakes sole discretion to pay in 2006 or 2007 (Article 2). Also, the NSC
7 will continue to offer public skating programs (Article 4).
8
9 City Administrator Heitke stated the Centennial Youth Hockey Association (CYHA) is
10 requesting funding from the cities of Lino Lakes, Centerville and Circle Pines to help
11 assist the funding of the Super Rink expansion. With a total commitment to fund
12 $780,000 the CYHA is requesting that the area cities fund $100,000 collectively as
13 distributed below:
14
15 City of Lino Lakes $72,000
16 City of Centerville $16,000
17 City of Circle Pines $12,000
18
19 Additionally, the City of Lino Lakes would be responsible for 1,340 hours of ice time per
20 year.
21
22 City Administrator Heitke stated the Council needs to determine whether the City of Lino
23 Lakes is willing/able to commit funding for this endeavor. The Park Board discussed this
24 at their February 6 meeting. The Park Board was generally supportive of the proposal and
25 thought it was a good opportunity for the City.
26
27 Mr. Erickson distributed and reviewed the Risk Assessment noting the CYHA is
28 obligated to buy 860 hours/year (by contract) of the 1,340 hours of ice time the City is
29 responsible for. He stated the City of Centerville passed the resolution unanimously. The
30 City of Circle Pines has offered favorable comments and will be voting on the resolution
31 next week. He stated the CYHA is open to the City's thoughts on the timing of a
32 financial commitment.
33
34 Mr. Erickson distributed a resolution allowing for a $24,000 payment in January 2007,
35 2008 and 2009.
36
37 Finance Director Rolek advised that the Council needs to be aware of the fact that there is
38 a financial risk due to the required ice time. He stated a precedent might also be set for
39 other organizations. He advised the Council that the City would have to raise taxes or
40 lower City serviced to pay for this endeavor.
41
42 The resolution for Super Rink participation was added to the regular Council agenda
43 Monday, February 13, 2006 6:30 p.m.
44
CITY COUNCIL WORK SESSION FEBRUARY 8, 2006
APPROVED
1 VLAWMO RESOLUTION
2
3 City Administrator Heitke advised that throughout the past two years, discussions have
4 occurred within the VLAWMO in order to have the necessary resources to effectively
5 manage the water resources within its jurisdiction. Recently, member units, including
6 Lino Lakes, agreed to extend the joint powers agreement for an additional year in order to
7 allow for the exploration of ways to obtain adequate financial resources, as well as
8 address the need for a water plan and resolve governance issues.
9
10 City Administrator Heitke stated the Board of Directors has proposed to address the
11 funding problem by proposing legislation, which would make VLAWMO a special
12 purpose taxing district, allowing them to levy taxes on properties within their jurisdiction.
13 The Board is seeking resolutions of support from its member units for this legislation.
14
15 Mr. Jeff McDowell, Lino Lakes representative on the VLAWMO Board, came forward
16 and explained the proposed legislation and resolution of support with the Council.
17
18 The Council indicated unanimous support for the proposed resolution proposing a special
19 purpose taxing district, allowing them to levy taxes on properties within their jurisdiction.
20
21 This item will appear on the regular Council agenda Monday, February 13, 2006, 6:30
22 p.m.
23
24 Mayor Bergeson called for a short break at 9:04 p.m.
25
26 Mayor Bergeson reconvened the meeting at 9:15 p.m.
27
28 REGULAR AGENDA ITEMS
29
30 Item 7A, September 8, 2005 Special Council Work Session Minutes — City Clerk Bartell
31 distributed a memo outlining the history of the minutes. It was noted that action needs to
32 be taken on the minutes.
33
34 Ms. Caroline Dahl, 1101 Holly Court East, came forward and distributed three different
35 draft copies of the minutes noting their differences.
36
37 City Clerk Bartell advised the draft minutes in the Council packets are the original draft
38 received from TimeSaver.
39
40 Councilmember Carlson referred to the December 19 Council minutes. She asked that
41 they be reconsidered and requested an opinion from the City Attorney regarding the
42 reconsideration of the minutes.
43
44 Councilmember Carlson questioned if there is a new format for the expenditures. She
45 also requested a copy of the staff report for Item 1D, Resolution No. 06 — 13, Correcting
7
r
•
CITY COUNCIL WORK SESSION FEBRUARY 8, 2006
APPROVED
1 the 2007 City Council/Mayor Salary Schedule. She asked that this item be taken off the
2 consent agenda and an explanation given at the regular Council meeting.
3
4 There were no other changes to the regular agenda.
5
6 The meeting was adjourned at 9:50 p.m.
7
8 These minutes were considered, corrected and approved at the regular Council meeting held on
9 February 27, 2006.
10
11
12
13
14
15
16 Transcribed by:
17 Kim Points
18 TimeSaver Off Site Secretarial, Inc.
19
nne artell, City Clerk
8
hn erg son, Mayor