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HomeMy WebLinkAboutCity Council Minutes 08-08-1994 SpecialMINUTES COUNCIL STUDY SESSION AUGUST 8, 1994 A special study session meeting of the Plymouth City Council was called to order by Mayor Tierney at 5:38 p.m. in the Conference Room of the Public Safety Building, 3400 Plymouth Blvd., on August 8, 1994. PRESENT: Mayor Tierney; Councilmembers Edson, Helliwell, and Lymangood. Councilmember Granath arrived at 5:45 p.m. Councilmember Morrison arrived at 5:55 p.m. Councilmember Anderson arrived at 6:10 p.m. ABSENT: None. STAFF PRESENT: City Manager Johnson, Assistant Manager Lueckert, Public Works Director Moore, Public Safety Director Gerdes, Park Director Blank, Finance Director Hahn, Asst. Finance Director Jacobson, Finance Office Supv. Leitner, Planning Supv. Senness, Associate Planner Keho, City Attorney Barnard, and City Clerk Ahrens. ALSO PRESENT: Bo Bock, Financial Advisory Committee DISCUSSION OF LAND USE REGULATIONS Planner Keho described the purpose of planned unit developments. Councilmember Helliwell stated that she generally does not support the use of planned unit developments, and she does not believe they should be allowed when northwest Plymouth develops. She stated that these developments can result in large homes on small lots, and she is concerned that Plymouth will not age well". Community Development Director Hurlburt stated that planned unit developments are useful in order to save some natural features such as wetlands. The minimum lot size in Plymouth is much higher than other cities, and the market is not currently demanding that large of lots. Planned unit developments allow for cluster home development in order to maintain open space, and lot size alone does not determine how well the housing stock will age. She stated that affordability is also an issue. If wetlands are saved only by decreasing density, lot prices will escalate, and this cost will be borne by the consumer. A variety of housing type is needed. Councilmember Helliwell stated that children are playing in the streets and that is an indication that yards are too small. Study Session Minutes August 8, 1994 Page 2 Councilmember Edson stated he is concerned that planned unit developments are perhaps being allowed in areas that are too small. The Parkers Lake PUD is hundreds of acres, but problems can develop with small acreage and infilling. He suggested that larger PUD's could be required in northwest Plymouth. Director Hurlburt agreed that the Council should revise the PUD requirements before development of northwest Plymouth begins. Councilmember Helliwell asked about the minimum acreage for a PUD. Planner Keho responded there is no minimum acreage for residential development and a 40 acre minimum for commercial development. Director Hurlburt stated there are also bonus points in the ordinance that reward larger sites. There are some smaller remaining sites in the urban area that have natural features and are difficult to develop. She recommended that the Council needs to address whether 18,500 sq. ft. is the appropriate minimum size for a conventional single family lot. Most of the metro area requires a 10,000 to 12,000 sq. ft. lot minimum. Councilmember Edson stated that PUD's are also difficult to understand and noted that citizens often believe the Council grants variances when approving a PUD. Councilmember Granath asked if Plymouth is unique in its use of PUD's. Director Hurlburt stated there are many PUD's in Plymouth that would be conventionally platted due to the large minimum lot sizes and setbacks designated in the ordinance. Councilmember Lymangood stated that the PUD ordinance needs significant review before development of northwest Plymouth. Director Hurlburt described the process for requesting a zoning district change or Zoning Ordinance text amendment. Councilmember Morrison asked what would occur if the Zoning Map and the Zoning Ordinance text are in conflict. Director Hurlburt responded that would not occur because the map prevails. If there is a conflict between the zoning map and Comprehensive Plan, there is a Study Session Minutes August 8, 1994 Page 3 provision that says the zoning ordinance will prevail over the Comprehensive Plan. However, there are very few inconsistencies. Planning Supv. Senness stated the subdivision of land is done for the creation of separate parcels in order to convey ownership. The City has a time limit of 120 days from the receipt of a complete application in which to act. Preliminary plat applications are reviewed by the Planning Commission and City Council. Final plat applications are reviewed only by the Council. She stated that street layout, lot layouts, utility plans, dedication for public and private recreation use, grading, and design standards are considered with a plat application. A recent issue under discussion is the length of cul-de-sacs. Councilmember Granath questioned the amount of discretion available to the Council when considering a final plat application. Supv. Senness responded that if the final plat layout is the same as the approved preliminary plat, it becomes difficult for the Council to deny the final plat application. It is better to deny a plat at an early stage if that is the intent of the Council. Manager Johnson stated the Council has a lot of discretion in establishing the Land Use Guide Plan and Zoning. Some discretion is available based on the ordinance standards when considering a preliminary plat application, but a final plat that is consistent with an approved preliminary plat is almost an administrative action. Councilmember Anderson reminded staff that the Council would like to receive a spreadsheet indicating the Council's authority at each stage of a planning application. Councilmembers Edson and Morrison requested that staff provide information on the amount of discretion available, as well as standards and possible reasons for denial, when the Council considers a PUD application. Supv. Senness stated the Council has some discretion when considering site plan applications, but findings are necessary for denial. Site plans can be approved by staff if it is consistent with City Codes and Engineering requirements. Director Hurlburt stated the staff is researching the environmental review process and will be recommending new procedures to the Council. Study Session Minutes August 8, 1994 Page 4 CITY COUNCIL STUDY SESSION SCHEDULE Manger Johnson presented a list of topics that could be discussed in study session by the Council. Councilmember Lymangood suggested that two or three Councilmembers meet to review the Freeman case and provide a recommendation to the full Council on whether to appeal the decision. Councilmembers Edson and Granath volunteered to review the case and provide a recommendation to the full Council. The Council discussed establishing a study session to consider expanded charitable gambling in the City. The Councilmembers indicated they are not interested in making any changes in the existing ordinance. Manager Johnson stated the Council had previously indicated an interest in conducting a study session on minor collector streets. He stated that the Council is slated to review the entire Thoroughfare Guide Plan in the next six months and the discussion on minor collectors could be included. The Council agreed the discussion of minor collectors should be included with the Thoroughfare Guide Plan review. Assistant Manager Lueckert requested that the Council hold open the week of September 26 to conduct interviews for legal services. The Council indicated their preference to establish Ward Town Meetings for October 5, October 10, October 19, and October 24. CITY ATTORNEY SUBCOMMITTEE Assistant Manager Lueckert reported that the list of legal firms that submitted proposals for City Attorney services has been narrowed from 21 to 6 by the City Council/Staff Subcommittee. The Subcommittee suggests that they would interview the firms and conduct background checks. A recommendation of the firms to interview would then be presented to the full Council. She stated that some of the firms would provide both prosecution and civil services, while other firms would provide only one service. Councilmember Helliwell stated she would prefer to have all services provided by the same firm. Study Session Minutes August 8, 1994 Page 5 Councilmember Lymangood stated he would consider voting to split the services between firms if that was the most cost effective. He stated this is a significant part of the City's budget and legal services have had a political history the last few years in Plymouth. He would like to eliminate the political banter on this issue and, if possible, get a higher quality firm at equal or less cost. Councilmember Granath stated he would favor a split - but not at a greater cost. He will consider all options. PROPOSED 1995 BUDGET Manager Johnson stated the City is required to adopt a proposed levy by September 15. The final levy may not exceed the levy established on September 15. Councilmember Lymangood stated he would like the Council to discuss revenues and expenditures as separate issues. He also would like to discuss long-term budgeting. Councilmember Edson stated he would like the budget discussions to include the City's long-range commitments for operating costs of major expenditures, such as the park plan and open space. Councilmember Anderson stated the City will run out of land to develop in about three to four years without extension of the MUSA. There is no analysis how this will impact the City's revenues. He suggested that the Council should discuss the overall process and parameters of the proposed budget. He suggested that the Council discuss what will be the process for reviewing and approving the 1995 budget. There is a proposed additional expenditure of $1.1 million in the budget. He stated the Council should first specifically identify where and how much additional income will come into the City in 1995 to cover this increased expenditure. Councilmember Anderson stated that the Council should determine what the policy will be when a budget surplus exists. Should the Council spend the money now, save it for the future, or reduce the current tax burden? He suggested delegating to staff through the formation of a Council Subcommittee the responsibility to bring back to the Council a budget which does not exceed the additional revenue coming into the City in 1995. The Council should also establish a communication plan so the public is advised that City taxes will not be increasing. Any increase in taxes is due to other taxing authorities. He Study Session Minutes August 8, 1994 Page 6 suggested that the Council have an overall goal that the total City tax a property owner will pay will be the same in 1996 as it was in 1993. The Council requested a variance report that would indicate if there is an increase in expenditures greater than the inflation rate. Councihnember Lymangood requested additional information on cost reduction efforts and programs that could be amended or eliminated for productivity. As an example, he cited an employee suggestion to change the dog licenses from one to two years. Finance Director Hahn presented the staff report on the 1995 proposed budget. This included the typical tax bill and City taxes as a percent of the average tax bill, an explanation of how the typical tax bill is calculated, the estimate of residential property tax for various valued homes, City taxes on selected homes for various cities, market value trends, market segment comparison for residential and commercial properties, 1995 taxes generated by the City's growth, 1995 General Fund Budget Revenue and Expenditure categories, and major operating funds. He stated the City serves 600 to 700 new homes each year, but no taxes are collected for the first year or two. Councihnember Lymangood requested information on projected new residential, commercial, and industrial values and the potential impact on the 1996 and 1997 budgets. Manager Johnson stated that both the revenues and expenditures actuals will be less than budgeted for 1994. He stated that $12,740,000 was budgeted, and staff is expecting the actual to be about $12,400,000. Bo Bock, Financial Advisory Committee Chairperson, stated that the City should identify its core services. These should be funded from ad valorem taxes and other services should be funded from other sources. Manager Johnson stated that one major issue affecting the 1995 budget is tax abatements. There are 217 court petitions pending with a total value of $47.1 billion. This is a potential value reduction of $84.7 million. The major properties impacted are office buildings, hotels, and multi -tenant office/warehouse. There are signs of improvement such as vacancy rates falling and rents per square foot increasing slightly. He stated the City may lose 375,000 in abatements and delinquent taxes in 1995. Study Session Minutes August 8, 1994 Page 7 Finance Director Hahn showed a chart indicating the court activity by tax year and the average loss per case. He stated that $372,000 is budgeted for tax abatements for 1995. Delinquent taxes are also budgeted. Councilmember Lymangood stated that the average value per parcel has widely varied and that perhaps a percentage loss in property value would be a more accurate projection than using the average value loss per case times the estimated number of cases to close in 1995. He volunteered to study this issue further to ensure the City is adequately covered for 1995. Finance Director Hahn said the average loss is less today than in the last few years and the estimate for 1995 is conservative. Manager Johnson stated the contingency fund could also be used. He does not want to over -budget for tax abatements. Councilmember Edson stated the City has no control over tax abatements and an accurate projection is needed. Manager Johnson stated that a listing of all properties with tax abatements with property type and market value will be provided to Councilmember Lymangood for review and report to the full Council. Manager Johnson stated another issue affecting the 1995 budget is sold waste recycling fees and the reduction of $200,000 in grant funding from Hennepin County. A citizen focus group recommend a fee increase from $1 to $2 per month to offset the loss of funding rather than reducing the program scope. The Council favored the concept of increasing the recycling fee by $1 Councilmember Edson stated there is a $1.1 million difference between budgeted expenses proposed for 1995 and estimated actual expenses for 1994. The actual difference in revenue in 1995 compared to estimated actual revenue for 1994 is only about $800,000 because there is a surplus of about $300,000. Manager Johnson stated there is an additional amount in 1995 to buy down the bond levy. Councilmember Anderson stated he would like the sources of increased revenue specifically identified. Manager Johnson stated a traffic enforcement unit is another major initiative contained in the 1995 budget. The unit would concentrate on enforcement of Study Session Minutes August 8, 1994 Page 8 existing traffic laws and investigation of accidents, as well as respond to citizen concerns about speeding. The cost for two officers and a squad car are about 110,000. Staff anticipates writing 4,700 citations per year for a revenue generated of $119,000. Councilmember Helliwell stated she supports this idea to address problems with safety and speeding in residential neighborhoods. Public Safety Director Gerdes stated the unit may be assigned to concentrated rush hour periods or to a particular area of the City where speeding problems exist. Mayor Tierney stated she would prefer to see a review of the speed limits and other options pursued to enhance safety in neighborhoods before the personnel base of the City is expanded. She believes the traffic enforcement unit is a negative approach and that is it difficult to justify the hiring of four new officers in 1995. She asked how many officers were added in 1993 and 1994. Councilmember Anderson stated there were 56 officers in 1992; 61 in 1993; 65 in 1994; and a proposal for 69 in 1995. Director Gerdes stated that the 1995 number includes two school liaison officers. Councilmember Lymangood stated there is a speeding problem in the City, but questioned whether this is the best way to address it. Director Gerdes stated that the goal of the unit is to reduce speeding through a variety of approaches, identify the critical areas, and eventually eliminate the unit. The officers would be incorporated into the overall patrol force. The unit will also help the department's goal to reduce committed patrol time. Councilmember Lymangood expressed concern that there may be the perception that the City is hiring a person who will write speeding tickets to pay for their own position. He requested that a notation be made that the unit would be eliminated over time. Councilmember Granath stated this is a core service that the public is demanding. He agrees that it must be a comprehensive approach and that it will have a positive impact. Study Session Minutes August 8, 1994 Page 9 Councilmember Morrison stated the budget must be a policy statement. If the Council intends to address speeding and increase safety in neighborhoods, the budget should reflect that priority. Councilmember Anderson stated the biggest concern is safety on the streets. He proposed that the Council reconsider its policy regarding installation of sidewalks in the City. Manager Johnson responded that the recent park and recreation survey indicated that trails are a top priority and the Capital Improvement Program includes an increase in trail construction for 1995. Manager Johnson stated that new personnel is proposed in the 1995 budget based on the Council's goals. He stated that Plymouth has less staff than comparable cities, and Plymouth is in greater need of personnel than additional equipment or materials for 1995. Councilmember Edson expressed some concern over the graphs indicating the number of employees per capita and comparisons to similar cities. He noted that there is variation in the services provided, such as community centers and senior citizen centers. Councilmember Lymangood stated he is uncomfortable exceeding 3.5 employees per capita with the added personnel, unless there are additional services or programs. Councilmember Morrison stated she would also like to remain at 3.5 employees per capita. Manager Johnson stated this would allow for five new positions. There are 7.2 new tax supported positions proposed for 1995 and four new non -tax supported positions. Councilmembers indicated that they did not wish to debate the importance of one position over another or to determine which positions should remain in the budget. Councilmember Lymangood stated that he would like more information on areas of saving and reductions and whether existing programs could be reduced or eliminated. For example, he does not believe that every single family home needs to be inspected each year under the housing maintenance program. Study Session Minutes August 8, 1994 Page 10 Manager Johnson stated that seven of the 24 major areas of the budget have decreased over the previous year. He will provide further information on areas of savings in each area of the budget. Finance Director Hahn stated that Council, Commission, and public demands on staff have increased in the last few years. Councilmember Helliwell stated she will support the recommended positions. The Council directed staff to evaluate and make the final recommendation on staff positions for 1995. Manager Johnson stated that infrastructure funding and assessment policies will also impact the 1995 budget. This includes the implications of the Freeman case decision and less reliance on special assessments to fund the infrastructure replacement program. He stated that a 30 percent assessment rate for infrastructure replacement is somewhat high as many cities assess in the 20 percent range. In 1994, about $50,000 was saved from hiring in-house engineering services. He recommended that in addition to the $50,000 increase in the replacement fund, that a 3 percent levy be added as protection against assessment appeals. Councilmember Edson suggested that the Council be provided with a report on assessment rates for other cities for infrastructure replacement. Mayor Tierney stated the report should also include the legal implications or liabilities by changing the formula because many residents have been assessed under the 30 percent formula in the past. Manager Johnson suggested that the Council would determine and announce a new future policy and then establish a transition. The Council summarized the items requested for report at the next budget study session. They want a method to communicate the proposed budget with citizens to include the Council's goal not to increase taxes. The Council discussed the demands on staff due to work with City boards and commissions. Councilmember Lymangood questioned whether staff needs to be present at all meetings, and he would like the Council to consider the need for each commission. Study Session Minutes August 8, 1994 Page 11 Councilmember Edson stated there is a City Code and statutory provision for the Board of Zoning, Planning Commission, and Park and Recreation Advisory Commission, but perhaps the Council should consider a sunset for some of the other commissions in order to evaluate their worth. MOTION was made by Councilmember Anderson, seconded by Councilmember Lymangood, to adjourn at 943 p.m. L1 City Cferk