HomeMy WebLinkAboutCity Council Minutes 07-29-1997 SpecialMinutes
Special Council Meeting
July 29, 1997
A special meeting of the Plymouth City Council was called to order by Mayor Tierney at
7:00 p.m. in the Public Safety Training Room, 3400 Plymouth Blvd., on July 29, 1997.
COUNCIL PRESENT: Mayor Tierney; Councilmembers Bildsoe, Wold, Preus, Spigner,
Johnson, and Black.
ABSENT: None.
CITY STAFF PRESENT: City Manager Johnson, Assistant Manager Lueckert, Community
Development Director Hurlburt, Public Works Director Moore, Public Safety Director
Gerdes, Park Director Blank, Finance Director Hahn, Housing Supervisor Goldsmith, and
City Clerk Ahrens.
Shenandoah Townhomes
Discussion was held on possible funding options for the Shenandoah Townhomes Housing
Improvement Area siding project. Councilmember Bildsoe said that it is important the
Council discuss the financing options because each could result in a different obligation to
the City. He asked about the homeowner association's commitment to the project.
Housing Supervisor Goldsmith said that 22 vetoes to the creation of a Housing Improvement
Area have been received to date. He presented the five financing options outlined in the staff
report, discussed the impact of private versus public placement of bonds, and explained the
impact of the various financing options on the interest rate received. He discussed the
responses received from three banks with respect to the various financing proposals, as
outlined in the staff report.
The President of the Shenandoah Homeowner Association stated that the Association prefers
the financing option whereby each individual property owner would be billed by the County
for their share of the improvements as part of their semi-annual property tax payment.
Finance Director Hahn explained that the City typically adds one percent over the cost of
issuing bonds. This amount could be recouped through the direct assessment to property
owners.
Community Development Director Hurlburt added that the City establishes the length of the
assessment.
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Councilmember Johnson asked if the Association is financially prepared for ongoing
maintenance to the building. She also asked if there is anything to prevent early pay-off of
the assessments by homeowners.
The Association President said the siding has a 50 -year warranty.
Housing Supervisor Goldsmith explained that if the ordinance creating a Housing
Improvement Area becomes effective, the next step will be for the Shenandoah Homeowners
Association to present a financial plan to the City that provides for the financing of
maintenance and operation, and a long-range plan to finance needed capital improvements.
The City Council could then approve a financing plan and fees to be imposed on the
homeowners in the area. The homeowner association has requested that any fees be equally
apportioned among all of the units, in accordance with their association bylaws.
Councilmember Bildsoe said that he would like a 10 -year call or a similar prepayment
provision on the bonds. The City also needs to consider whether the assessments will be
due on sale" or assumable by a subsequent owner.
Housing Supervisor Goldsmith said that a public hearing will be held on the proposed fees.
Manager Johnson requested that the Council provide direction on whether they wish staff to
pursue a direct loan or loan guarantee option. He said that a direct loan may result in a lower
interest rate and less paperwork. However, it would create more risk for the City and would
set a precedent.
Councilmember Wold favored Option 1 whereby the City would provide the entire amount of
the loan from either existing fund balances or bond sales, with the costs assessed back to the
individual properties through their property tax bill. He does not believe that there will be
similar requests from other associations. He favors the 15 -year term and would like to know
what the homeowners desire with respect to the buy-out option.
Councilmember Preus asked about costs to the City under the various financing options.
Director Hurlburt responded that the City can recoup its costs under all of the options, with
the exception of the risk of nonpayment of fees.
Councilmember Bildsoe also favored Option 1. He supports an assessment through the
property taxes because neither the City or association have to collect the fees. He also
believes this option will result in the most favorable interest rate.
Mayor Tierney also supported Option 1 because it may be less of an attraction and precedent
for future requests.
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Housing Supervisor Goldsmith said that the City Assessor could identify no other significant
developments where a similar request could be made. This development meets the statutory
requirements of affordable housing and the needed physical improvements cannot be made
by each individual homeowner.
Councilmember Black favored Option 1 because it appears to be the easiest and is a low risk
to the City. She would prefer a 10 -year period, but would be willing to go to 15 years. She
requested that the criteria be considered by the Housing and Redevelopment Authority for
recommendation to the Council.
West Medicine Lake Park
Park Director Blank presented an update on the construction of West Medicine Lake Park.
Funds are included in the proposed budget to open the beach in 1998, and the park will be
substantially completed in October 1997.
In response to questions from Councilmember Johnson, Director Blank explained that the
beach work was already done this year; however, the contractor missed the grades because
the work was done in the winter. This work will be redone. The architect is working on
modification of the picnic shelter design. The cover will be constructed on the walking
bridge by City staff.
Mayor Tierney asked about diving facilities at the beach. Director Blank said that the beach
is at the narrowest part of the lake. On the west side of this area is a boat channel and the east
side has shallow water. Diving is not feasible in this area.
Councilmember Johnson asked which jurisdiction establishes rules for the lake.
Director Blank explained that since Medicine Lake is multi jurisdictional, Hennepin County
imposes regulations and handles enforcement.
Ice Arena
Manager Johnson updated the Council on the ice arena/LifeTime project costs. Bills are still
coming in and construction is not 100 percent complete. The cost of the ice arena project for
architects, construction manager, permits, equipment, furnishings, and site improvements is
currently estimated at $9,117,330, which includes parking lot costs assessable to LifeTime.
Some of the grading and utility costs in this figure are also attributable to the contract with
LifeTime Fitness. The City's cash contribution to LifeTime is $1,600,000. Adding this to
the $9,117,330 ice arena cost totals $10,717,330 in City cost for the entire project.
He said the initial estimate of the project cost came from an independent estimator hired by
Shea Architects in March 1996. It estimated the City's costs for construction at $8,958,230.
After adding the LifeTime contribution of $1,600,000, the total project added up to
10,558,230, which is 1.5 percent higher than the May 1996 estimate. Unfortunately, these
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estimated costs are about $790,000 more than the estimate given to the Council in September
1996. Various cost savings have been achieved in the project, but these have been more than
offset by bad soil and site conditions, a difficult bidding climate, severe winter weather, and
an Attorney General's ruling that the project is subject to prevailing wage requirements.
Manager Johnson said that the per square foot cost and time of completion is very much in
line with other similar projects occurring in the Metro area.
Councilmember Preus asked for an estimate as to how much the project will be over budget.
Manager Johnson said the most recent costs show the project will be about $900,000 over the
September 1996 estimated cost.
Councilmember Preus said he has concerns that the estimate provided in September 1996
was not a good estimate and that the Council was not informed sooner that the project would
be significantly over the estimate. The Council was advised that there were construction
problems due to weather and soil conditions, but no cost information was provided.
Manager Johnson explained that this project was done under the construction management
approach where 20 or so different bids came in over a six month period. The winter costs
were just identified a month ago. He believes the estimate was made based on normal
conditions and a favorable economy.
Councilmember Johnson asked if the project would have cost less if a general contractor
approach had been used. She also asked who is responsible for watching the costs on the
project.
Manager Johnson said the costs would not have been less. The excess costs are due to
unusual site conditions, weather conditions, and economy. The construction manager was
tracking costs on a day-to-day basis, and he updated the Park Director and City Manager on a
monthly basis.
Park Director Blank explained one item that attributed to the increased cost. In September,
the construction manager estimated that the winter heating costs would be about $90,000.
These costs actually peaked at $140,000. This was because Minnegasco estimated the gas
usage and later did an actual reading. He also noted that there was no contingency built into
this project, and there have been perhaps 1,000 change orders on the project.
Councilmember Black noted that if the architectural drawings were not complete, it may fall
under errors and omissions.
Manager Johnson said that the City does not know the scope of the drawing errors at this
point. The construction manager has been asked to provide a list of all places in which the
drawings were not complete.
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Councilmember Preus requested that a summary of this list be provided to the Council as
soon as it is received from the construction manager.
Public Works Director Moore commented on the very difficult bidding climate due to the
large amount of work occurring in the Metro area. He said the early grading and steel
contracts were good, but high bids were submitted for portions of the project like the roof. It
is difficult to stop a project to wait for more favorable bids once construction has started.
Councilmember Black expressed concern that the City be better able to estimate costs for
future projects. She also believes that a contingency should have been included in this
proj ect.
Manager Johnson noted that staff has been providing estimates on the construction cost,
rather than the total project cost.
Councilmember Bildsoe explained that he had requested discussion of this item so that the
Council is fully aware of the cost overages and things can be learned for future project.
Activity Center
Manager Johnson presented an update on the possible Activity Center planning, including a
proposed schedule. It is staff's opinion that it is no longer feasible to obtain a good cost
estimate or concept plan for a possible Activity Center by September 17, which is the last
date for calling a November bond referendum. He said that School Districts 281 and 284 are
interested in working with the City on a family resource center element to the building.
School District 284 would like to know by January 1998 whether the City will move forward
with the project. Staff also proposes to install traffic counting devices at the entrance to the
site so the data can be used by the architect to evaluate parking needs for a possible facility.
Manager Johnson said the Activity Center Subcommittee has also discussed its preference for
a sports dome to be constructed in Plymouth Creek Park along 34`h Avenue. Issues such as
access, soil conditions, and screening from the residential area would need to be considered.
Park Director Blank reported that memberships at LifeTime have reached 5,000, which is
half of their potential memberships at the facility. There are already times when parking is
quite full. The Master Plan for the Plymouth Creek Park shows City Hall parking extended
to the Activity Center site. He believes that parking is a significant issue with respect to this
development.
Councilmember Wold said that he has supported the Activity Center project with the
assumption that not many trees would be lost. He would not favor a continuous parking area
from City Hall to the site.
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Councilmember Black agreed that as many trees as possible should be saved. Many trees
were already lost with the LifeTime, Ice Arena, and Amphitheater site development.
Councilmember Johnson said that demographics of the community need to be considered, as
well as the impact of an increase in LifeTime membership. The use of LifeTime and the Ice
Arena may also differ in the winter.
Mayor Tierney asked if other land may be available for an Activity Center.
Park Director Blank responded that the only undeveloped land in the park system is in
Plymouth Creek Park.
Councilmember Preus agreed that parking is a significant issue with regard to whether this
development moves forward. He wants the City to have an absolutely thorough analysis of
the parking needs.
Councilmember Black noted that the operating costs for these types of facilities usually far
exceed the capital costs. She would like a worst-case estimate for operating costs.
Manager Johnson said a $130,000 total operating loss is expected with expectations that
rentals would offset about $50,000. That estimate is without school district involvement.
City Council Meeting Procedures and Schedule
Manager Johnson presented a staff report and research on Council meeting procedures and
scheduling.
Mayor Tierney said that more Council study session time is needed, and she suggested a
brochure for use at Council meetings to aid the audience in understanding Council meeting
procedures.
Councilmember Wold said members of the Council need to contact staff with questions and
seek clarification on issues prior to the Council meetings.
Councilmember Preus identified several Council meeting procedure problems. The Council
has wasted large amounts of time at meetings and not finished on time (10 p.m.
adjournment). He said the Council starts a meeting in a slow mode, then has to rush through
business late in the meeting. Plymouth is one of the most active communities in the state and
handles a great deal of business. He believes the Council must get more business -oriented,
get to the point of issues, and move on to other business. The Council needs to have
sufficient time to make the important decisions. The Council must prepare for meetings.
The Council's job is to make a decision, not necessarily to ask questions or make points at
the meeting. He said that there have been issues where '/2 hour of public input was received,
followed by 1'/2 hours of Council/staff questions. The rules of procedure must be applied
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during Council meetings. The Council should adhere to rules of procedure and the rules
should be consistently enforced by the Mayor.
Councilmember Bildsoe said that it seems the Council often reaches the same conclusion on
an issue whether or not a long discussion was held.
Councilmember Johnson said the 10:00 p.m. adjournment rule is good, but additional time is
needed during many meetings. She would support a change to an 11:00 p.m. adjournment
time, but would compromise to a 10:30 adjournment. This would eliminate time spent by the
Council suspending the rules to extend the meetings. She also believes that the Council
should hold one regular study session each month. She said that only new information
should be heard at the Council meetings on issues that have already had a. Planning
Commission hearing.
Councilmember Black does not support an extension of the adjournment time. She would
support a regular study session, but only during the times of the year when needed. She
suggested that a motion be placed on the table before discussion, that the rules be enforced to
limit speakers to five minutes, and that only new information be received from speakers at
meetings. Councilmember Black said that at the July 9 meeting, she was unaware that there
were items that required action that evening. She would like those types of items clearly
identified on the agenda. She would also support having items that are removed from the
consent agenda considered prior to the General Business items.
Councilmember Wold said that he does not support extending the adjournment time or
conducting regular study sessions. Study sessions can be scheduled when needed. He said
there are many solutions to the Council's meeting problems that are already in place through
the Roberts Rules of Order and Council's Policy on Meeting Conduct. The Council needs to
better use Roberts Rules and the Mayor should consistently enforce the rules. The Council
needs to make it clear to citizens that they have the right to speak before the City Council, but
that they have a responsibility to limit their comments to five minutes and adhere to the rules.
Mayor Tierney supports extension of the adjournment time to 11:00 p.m. and establishment
of one regular study session each month. She believes that the Council's Policy on Conduct
of Council Meetings should be placed on the next regular meeting for debate. She would not
support more than two regular meetings per month. Mayor Tierney said she is not
comfortable gaveling speakers when they have exceeded their five minute limit, and she
would welcome a councilmember stepping in to enforce the rules when needed. She said that
on non public hearing items, the Council can put forth a motion at any time.
Councilmember Preus said that the Council has rules of procedure for very good reasons and
they should be consistently enforced because they enable the Council to make sound
decisions in an efficient manner. It is the Chair's responsibility to enforce the rules.
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July 29, 1997
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Mayor Tierney adjourned the meeting.
Motion was made by Councilmember Wold, seconded by Councilmember Preus, to appeal
the ruling of the Chair. Motion carried: six ayes; Tierney nay.
Mayor Tierney said she would have preferred to end the meeting at 9:00 p.m., but the
meeting will continue as requested by the Council.
Councilmember Preus said that the five-minute limit for speakers should be strictly enforced.
Plymouth has so much business that the Council must change how it has operated in the past
to a more structured application of the rules.
Mayor Tierney said that speakers' blue cards indicate when they are requesting more than
five minutes. She can notify the Council when a speaker has requested more than five
minutes.
Councilmember Wold agreed that the Chair should enforce the rules of procedure at
meetings. He would prefer that the Mayor ask for a motion when an item is considered,
rather than asking for questions or discussion.
Councilmember Johnson said that one of the goals established by the City Council is to
recognize employees and make announcements to the public. These presentations take
Council meeting time. She also wants to get information to the public at Council meetings.
Councilmember Bildsoe stated that even if the rules are strictly enforced, he is unsure that all
business can always be completed in the available time.
Councilmember Spigner said that she was angry when the Council recently adjourned a
meeting during an important and controversial issue. She would support a regularly
scheduled study session. She said that some citizens think the consent agenda is too long,
and many residents regularly view the meetings via cable to learn what is happening in the
City. Councilmember Spigner said that the heavy use of Subcommittees does not appear to
be working well because many issues are discussed by a Subcommittee and again by the full
Council. She does not support extension of the adjournment time past 10:00 p.m.
Councilmember Preus said that time is wasted when the Council listens to information that
was already presented at the Planning Commission hearing. Time is wasted when
Councilmembers ask a list of questions that could have been asked prior to the meeting. He
would consider extending the 10:00 p.m. adjournment time only if needed after the rules are
enforced and the procedure of Council meetings is improved. He supports a regular time
each month to schedule a study session when needed.
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Councilmember Wold agreed that there are ways of using the rules to get through the
agendas in an orderly fashion that will yield good results.
Councilmember Black said that if additional regular meeting time is needed, she would prefer
that meetings begin at 6:30 p.m., rather than extend past 10:00 p.m.
Councilmember Preus reminded the Council that there is nothing to prevent a meeting from
being extended past the 10:00 p.m. adjournment time.
Motion was made by Councilmember Wold, seconded by Councilmember Spigner, to make
no change to the Regular Council Meeting start time of 7:00 p.m. or adjournment time of
10:00 p.m. Motion carried: five ayes; Johnson and Tierney nays.
The Council requested that the Policy on Conduct of Council meetings be placed on the next
regular meeting for review and consideration of changes.
Mayor Tierney adjourned the meeting at 10:20 p.m.
fr/L.cP 2a/
Laurie Ahrens
City Clerk