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HomeMy WebLinkAboutCity Council Minutes 03-20-2001 SpecialAdopted Minutes Special Council Meeting March 20, 2001 A Special Meeting of the Plymouth City Council was called to order by Mayor Tierney at 5:30 p.m. in the Police Department Training Room, 3400 Plymouth Boulevard, on March 20, 2001. COUNCIL PRESENT: Mayor Tierney, Councilmembers Johnson, Hewitt, Stein, Black, Slavik Harstad. ABSENT: None. STAFF PRESENT: City Manager Johnson, Assistant City Manager Ahrens, Finance Director Hahn, Finance Manager Jacobson, Financial Analyst Kohn, Park and Recreation Director Blank, Community Development Director Hurlburt, City Engineer Faulkner, and Office Support Representative Sanderson. Surface Water Utility Fee Rate Structure Financial Analyst Kohn reported that at the February 13, 2001 Special City Council meeting, the Council discussed many different items pertaining to the Surface Water Utility Fee Rate Structure. There was one major outstanding issue that needed to be addressed. This issue is the amount of the fee and what expenditures would be covered by this fee. In addition, the Council needs to decide whether the school districts should be charged at all or possibly be deferred to a future time. He stated that this fee would cover operating costs and future capital costs. He then shared with Council the cashflow and funding requirements. He stated that the operating costs would be 1,250,000, and a fee based on the rate of $3.25/month/single-family home would generate $1.5 million. This fee would cover all activities in the Water Resources Management Plan. Councilmember Johnson asked what kind of scope the other cities had for their Surface Water Management Plans and what items are included in their fees. Financial Analyst Kohn replied that he would provide the information that he received from cities, i.e. Burnsville and Lakeville. Councilmember Johnson then asked whether the $120,000 for lake studies was part of the Plan. Financial Analyst Kohn replied that this money was part of the Plan. Mayor Tierney asked if the fee would be ongoing. Financial Analyst Kohn responded that for quite a number of years this would be ongoing. He explained that currently, only three lakes in Adopted City Council Minutes Special Meeting of March 20, 2001 Page 2 of 5 Plymouth are proposed for funding and in the future there may be the need to address other lakes. Councilmember Harstad indicated his support for having the school districts pay the fee. City Manager Johnson responded that the main reason for deferring the school districts would be because their fiscal year starts on July lsi and that they have budgets in place for the year. He also clarified that the thought was to possibly defer the fee for the first year then re-evaluate it. Councilmember Johnson asked if the school districts would be able to legally levy additional dollars under the State cap. City Manager Johnson replied that it is doubtful because of the complicated levy laws. Councilmember Harstad asked if watershed membership dues are mandatory or voluntary. Councilmember Black replied that it is a joint powers agreement among cities. She believes the agreement is voluntary, but if the City signs the agreement, the dues would be mandatory. Councilmember Harstad suggested that the City assume a leadership role with the lake cleanup projects. He would like to opt out of the Watershed District in order that the City could take ownership of projects and hire its own contractors. He is also concerned about the duplication of projects and studies with the watershed districts. Mayor Tierney replied that the City pays the dues and the watershed identifies projects and seeks bonding and funding for the projects. She mentioned that if the City weren't part of the Watershed District, it would be paying a large sum of money to fund projects. She asked how much of the Bassett Creek Watershed dues are included in the City's plan. Finance Manager Jacobson responded that all of the watershed dues are included in the plan. The dues are based on population and tax capacity. Councilmember Black asked if Councilmember Harstad was implying that the City should opt out of the Bassett Creek Watershed District. Councilmember Harstad voiced that he is more concerned about water surfaces within Plymouth and less concerned about Bassett Creek outside of Plymouth. Councilmember Black stated this is currently being discussed. She stated that the City would be paying more by implementing their own project. Plymouth is at the head of the watershed and all of the other cities would have to contribute to the City's project under the current policy because it would be affecting their city as well. Adopted City Council Minutes Special Meeting of March 20, 2001 Page 3 of 5 Councilmember Harstad asked if the City utilized the Bassett Creek Watershed's plan, what would happen to the City's plan. City Manager Johnson responded that both of the plans are very similar and that they need to be coordinated with each other. He also commented that it would probably be in the best interest of the City to stay with the Watershed District because over the years, Plymouth has been paying dues and assisting other projects throughout the district. In addition, the City's lakes are high priority, and the other cities in the district would assist with funding identified projects. Councilmember Stein asked who decides what type of improvements are made to the lakes. Councilmember Black replied that has not been determined yet. City Manager Johnson added that since the City is such a big part of the Bassett Creek Watershed District, they would probably not implement projects that Plymouth did not support. Mayor Tierney commented on the importance of having Plymouth representation on the Bassett Creek Watershed District. Councilmember Black stated that the Council will be reviewing the Joint Powers Agreement before approval. Financial Analyst Kohn stated he would not encourage the City to grant appeals from the surface water fee to single-family homes. However, the City could grant appeals for commercial property based on impervious surface coverage. Councilmember Harstad commented that the 100,000 that has been allowed per year for appeals is too conservative. Financial Analyst Kohn addressed the Council about the incentives of the plan and explained that Public Works staff has compiled a summary of possible incentives or utility fee relief programs. He added that there are a lot of ideas to work through and also that Public Works Director Moore had suggested that this should be adopted separately so that periodic changes could be made. He stated that these incentives are aimed toward reducing the amount of runoff and increasing the quality of water run-off. Financial Analyst Kohn discussed with the Council the implementation schedule with the actual billing to begin in August. A majority of the Council gave their approval of $3.25/month per single-family home fee. Regarding the school districts, the majority of the Council agreed that both public and private schools should be deferred for the first year of the program. Motion was made by Councilmember Hewitt, and seconded by Councilmember Black, to set May 22, 2001 as date of hearing on the proposed Surface Water Utility Fee (this includes 3.25/month/single-family home and deferring the charge to both public and private schools for the first year of the program). With all members voting in favor, the motion carried. Adopted City Council Minutes Special Meeting of March 20, 2001 Page 4 of 5 Hilde Performance Center Park and Recreation Director Blank brought before the Council a small model of the proposed Hilde Performance Center. He explained that the center is in the concept design stage. Al Hilde has met with the architects and construction managers to review the building and the cost estimates. Mr. Hilde has directed that the project move forward to the final design. The City now needs to proceed with publishing the Environmental Assessment Worksheet which would ultimately be reviewed by the Planning Commission and the Council. He stated there are a few items that are being discussed with Mr. Hilde and the architect including the type of roof and the budget. The roof is proposed to be an arched or curved roof. He stated currently the costs of the project are slightly over the $1,000,000 budget. However, the construction manager is confident that the project would be completed within the budget. If the costs exceed the budget, the Plymouth Civic League would be responsible for those costs. He illustrated the proposed site drawings of the facility that included the first and lower level floor layouts. Park and Recreation Director Blank mentioned that under the current budget, the upper level would be completely finished, and the lower level would be unfinished. The construction manager has indicated that finishing the lower level later would cost $68,500 and the elevator would cost $80,000. However, Mr. Hilde would not be paying for the elevator or for the finished lower level. He stated if the lower level were to remain unfinished and utilized simply for storage, then the elevator would not be required. If the lower level would be utilized for more than storage purposes, the elevator should be installed. Park and Recreation Director Blank suggested that the lower level include two bathrooms, make- up and changing rooms, storage, and humidity control. The level would include a walk -out toward the Millennium Garden, to the east. The City would be responsible for landscaping the site, paying the building permit fee, and providing sewer and water to the site. Public Works Director Moore has provided a budget estimate of $124,000 for sewer and water extension, and the Capital Improvement Program includes $150,000 for the project. He stated the City intends to conduct an open house on the project for adjacent property owners. Community Development Director Hurlburt stated staff would notify property owners within 750 feet of the site of the Environmental Assessment Worksheet process. Councilmember Johnson asked who would own the facility. Park and Recreation Director Blank replied it would be owned by the City. Adopted City Council Minutes Special Meeting of March 20, 2001 Page 5 of 5 Councilmember Slavik asked if the $150,000 in the Capital Improvement budget would cover the landscaping and building permit costs. City Manager Johnson replied the costs may exceed that amount. However, the Council could control the spending. Councilmember Slavik asked if the Council would be signing a final contract for the facility. Park and Recreation Director Blank replied after the final plan and design is prepared, a final contract would be presented to the Council for their approval. There being no further discussion, Mayor Tierney adjourned Iadjou_ , ned the,, meeting at 6:37 p.m. 3ll,(.1 f lYauix"Yo Heidi Sanderson, Office Support Representative