08-19-2014 CCM - Laserfiche WebLink

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LAKE ELMO CITY COUNCIL MINUTES AUGUST 19, 2014 Page 7 of 8 Mayor Pearson asked how to address those concerns in this motion. City Attorney Snyder responded that Council could approve the lease “subject to staff revision of CAM and other related costs.” Council Member Nelson asked about limiting the scope of staff review. City Attorney Snyder stated that staff would bring the lease back if they got to an issue that they couldn’t resolve. Council Member Smith was comfortable with that notion. MOTION: Mayor Pearson moved TO APPROVE THE FIVE YEAR LEASE WITH LAKE ELMO ASSOCIATES, LLP FOR CERTAIN RENTAL SPACE OF 2,461 SQUARE FEET IN A BUILDING LOCATED AT 3880 LAVERNE AVENUE NORTH FOR THE PURPOSES OF IMPROVING OFFICE EFFICIENCY FOR THE GENERAL ADMINISTRATION FOR THE CITY OF LAKE ELMO, SUBJECT TO STAFF REFINEMENT OF CAM RELATED CHARGES. Council Member Nelson seconded the motion. Council Member Bloyer spoke about bonding in 2005. The City bonded for a new City Hall, but one was never built. Finance Director Bendel stated that that bonding money was used to pay down the debt on the loan that was taken out in 2005. Mayor Pearson suggested that Council Member Bloyer work with Staff on this issue. City Administrator Zuleger stated that the needs the City has are for additional meeting space, more privacy, and more space for the building inspector to look at plans. Council Member Smith voiced her concerns about spending $30,000 a year right now while trying to have a zero based budget. Council Member Nelson understands that the City needs more space. He spoke about having some friends of his also look at the lease and they thought it was a good deal. He also stated that he has looked around the City for other places that may suite our needs and this is the best deal. He felt that leasing the space gives the City 5 years to make a decision about what to do about a new City Hall. Mayor Pearson spoke about the downsides of the Annex. He believes that the building next door would be better than using the Annex. His concern is that when the growth comes, if that space has been leased by someone else, then the City will really be in trouble as far as space goes and may have to do something reckless. Council Member Smith agreed that the five years gives us time. She asked if there was any way to keep the Annex and let Washington County use it rather than getting rid of it and have to pay it all off at once. City Administrator Zuleger responded that it could be used, but the HVAC has issues and it is an expensive building and it does not level well anymore. There are some structural integrity issues. Mayor Pearson reminded Council that they do not need to decide tonight about what to do with the Annex. He also stated that the Annex is a usable space but that there is an expense to keep using it. Council Member Smith would like to see a spreadsheet of the costs to keep using the Annex. MOTION PASSED 4-0. Council Member Bloyer spoke about paving the park aprons. He believes it needs to happen before fall. City Administrator Zuleger stated that with the late spring the City has fallen behind a bit. STAFF REPORTS AND ANNOUNCEMENTS City Administrator Zuleger: Finance Committee meeting tomorrow night. Handed out agenda for next week’s workshop. Working with developers on final touches, Ryland on construction of 50th Street and Lennar on their second addition plat. Working with Jack and Nick on downtown drainage solution. Did some code enforcement, and working on 5th street median design.