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HomeMy WebLinkAboutCity Council Packet 01-24-2017 Special Special Council and EDA Meetings 1 of 1 January 24, 2017 CITY OF PLYMOUTH AGENDA SPECIAL COUNCIL MEETING JANUARY 24, 2017, 5:30 p.m. MEDICINE LAKE CONFERENCE ROOM 1. CALL TO ORDER 2. TOPICS A. Ponderosa Ponds project B. Discuss memberships to various agencies and organizations 3. ADJOURN CITY OF PLYMOUTH AGENDA SPECIAL EDA MEETING JANUARY 24, 2017, immediately following Study Session MEDICINE LAKE CONFERENCE ROOM 1. CALL TO ORDER 2. TOPICS A. Resolution recommending the City Council adopt a modification to the development program for Development District No. 7 and establish Tax Increment Financing District 7-9 therein and adopt a Tax Increment Financing Plan Therefor. 3. ADJOURN SPECIAL COUNCIL MEETING January 24, 2017 Agenda Number: 2A To: Dave Callister, City Manager Prepared by: Doran Cote, Director of Public Works Reviewed by: Item: Consider Assessment Abatement for the Ponderosa Street Reconstruction Project (16008) 1. ACTION REQUESTED: Provide direction to staff regarding assessment abatement for the Ponderosa Street Reconstruction Project (16008). 2. BACKGROUND: The Ponderosa Street Reconstruction Project included Garland Lane north of 25th Avenue, Fountain Lane north of 25th Avenue, 27th Avenue west of Fountain Lane, and 60 feet of Everest Lane east of Fountain Lane. Improvements in this neighborhood included reconstruction of the streets to facilitate replacement of the water main. The existing 6” cast iron pipe (CIP) water main was replaced with 6” polyvinyl chloride (PVC). Water main valves and hydrants were replaced as well as water services from the water main to and including the curb stop. Other improvements included adding additional storm sewer to provide increased drainage capacity to the minimal amount of existing storm sewer in the neighborhood. Sanitary sewer manholes were also be sealed to limit the amount of storm water that seeps through the rings. Additionally, two rain gardens were included with the project to improve storm water quality. As discussed at the City Council Study Session on January 12, 2016 and was documented in the feasibility report, this project was unlike other typical reconstruction projects. The existing street condition in the neighborhood met the criteria for a mill and overlay, but a reconstruction was recommended due to the condition of the water main and the signification excavation required to replace it. Due to the unique nature of this project the Council considered other options as alternatives to the recommended reconstruction project and the associated assessments. The scope of the project could be reduced and the assessments could be lowered at the public hearing, but not increased without starting the project approval process over. The City Council held an Assessment Hearing for this project on April 26, 2016. The City’s current Assessment Policy states that benefitting property owners would be assessed 40% of the total project cost for this proposed reconstruction project. In accordance with the City’s Assessment Policy and the declared costs to be assessed, the proposed amount recommended to be assessed per benefitting property was $7,869.33 based on the lowest responsible bid received. Page 1 Three alternatives that the Council considered were to assess the improvements in accordance with the assessment policy which resulted in an assessment rate of $7,869.33, assess the improvements excluding any costs associated with the watermain replacement (removals, excavation, and restoration on one-half of the street) at the standard 40% assessment rate which resulted an assessment of $4,324.63, and lastly was to assess for an edge mill and overlay at $1,000.00. The City Council chose the second alternative and reduced the proposed assessment from $7,869.33 to $4,324.63. During construction, the contractor experienced a series of delays for which the affected property owners have requested financial relief. The contractor started construction later than anticipated, experienced a number of weather related delays, encountered unanticipated subsurface conditions and deeper than normal watermain and private utilities buried directly beneath the pavement, all of which contributed to the delays. They also had poor performance from one of their watermain replacement crews. At the conclusion of the project, staff negotiated 16 days of liquidated damages for the contractor. At $3,000 per day, the liquidated damages reduces the contract amount by $48,000, however, there were cost increases on the project, nearly all of which were for items that would not normally have been assessed anyway. If the City Council wishes to pass on any “savings” to the 48 affected property owners, staff suggests a rebate for them rather than reducing the already certified assessments. 3. BUDGET IMPACT: 4. ATTACHMENTS: Project Location Map Page 2 Page 3 SPECIAL COUNCIL MEETING January 24, 2017 Agenda Number: 2B To: Dave Callister, City Manager Prepared by: Luke Fischer, Administrative Services Director Reviewed by: Item: Review City Council Memberships During its discussion about legislative priorities for 2017, the City Council requested background information about the memberships it holds for advocacy purposes. The list below is intended to identify memberships held by the organization – though staff may be involved in others that are not included. League of Minnesota Cities 2017 Dues: $34,000 The League of Minnesota Cities was founded in 1913 and became an independent organization in 1974. The League is governed by a board of directors, comprised of elected and appointed officials from across the state. The League provides resources to cities on topics ranging from budgets to zoning and land use, serves as an advocacy resource at the legislature, and provides property/casualty insurance through the Insurance Trust. Each year, the League conducts an open process to develop its legislative priorities. In recent history, City staff have participated in these committee meetings – and have had success raising support for issues important to the services the City of Plymouth provides. These priorities have covered topics regarding elections, service delivery, improving fiscal futures, and others. To a large extent, the League’s legislative priorities address technical law corrections that could help the City operate more efficiently and provide better services. That said, the League is a large organization that represents the interests of nearly every city in the state and there are some policies that contrast with Plymouth’s stated positions. https://www.lmc.org/media/document/1/2017citypolicies.pdf?inline=true Municipal Legislative Commission 2017 Dues: $10,500 The Municipal Legislative Commission (MLC) is an association of 18 suburban communities that are similarly situated – in demographics, tax base, service level, and other characteristics. Generally, its membership believes its interests are not adequately represented and the group has become a forum for mayors and city managers to promote best practices, enhance accountability, and find solutions that can help better member communities. Each year, MLC develops legislative policies that are member driven. In recent history, the mayor and staff have engaged in policy meetings that have encouraged the group to more actively advocate for sound fiscal policy – which has been well received and included in MLC’s legislative platform. Generally, the City Council has viewed MLC policies favorably and supports its legislative platform. There have been few areas of difference in recent history (if any). http://mlcmn.org/wp-content/uploads/2014/10/2017-MLC-Legislative-Program.pdf Metro Cities 2017 Dues: $14,224 Metro Cities is an advocacy group of cities generally located in the seven county metropolitan area. The group has a long history of serving as a counterpoint and municipal representative to the Metropolitan Council and has a Page 1 presence at the legislature on behalf of member communities each year. Its board is made up of elected and appointed officials from member cities – which provides general direction to the organization. Every year, Metro Cities holds a policy development process that is comprised of four subcommittees. These committees shape the legislative priorities for the upcoming year. City staff has served on these committees in the past and has advocated for some evolution in the group’s stance around fiscal policies and its general relationship with the Metropolitan Council. Many suggestions by staff have been met with resistance from other members of the organization. To a large extent, Metro Cities’ policies align with Plymouth’s interests. That said, there are major points of divergence around fiscal policy and Metro Cities’ relationship with the Met Council that should be closely monitored in the future. https://www.lmc.org/media/document/1/2017citypolicies.pdf?inline=true Suburban Transit Association 2017 Dues: $6,000* The Suburban Transit Association (STA) is a collection of suburban transit providers (formerly known as opt-out providers). The STA serves as a resource to all suburban transit providers and proactively advocates for each at the legislature and with the Metropolitan Council. The STA develops its legislative priorities each year through a collaborative process by its members. These priorities have enabled suburban transit providers to collectively articulate their interests. *STA dues are paid through Transit Funds Twin West Chamber of Commerce 2017 Dues: $592 Twin West Chamber of Commerce represents a number of communities in the west metro, including Plymouth. The group reports over 700 member businesses and advocates on behalf of its business climate. Twin West hosts legislative breakfasts – serving as a conduit between the business community and elected leaders at the state level. It also holds a number of other common interest meetings for stakeholders to confer. Twin West’s legislative priorities are developed through its Government Affairs Committee. To date, the City has not been involved in the Chamber’s legislative priorities because, in part, the purpose of the Chamber is to influence policy at all levels – including the City. https://www.twinwest.com/business-agenda Suburban Rate Authority 2017 Dues: $6,375 The Suburban Rate Authority (SRA) is a joint powers organization of 32 metropolitan communities totaling over one million in population which intervenes in electric, gas and telecommunications matters before the Public Utilities Commission. The SRA also provides legal guidance to member communities on matters regarding privately owned utilities such as relocation, billing and reliability. The SRA is also active in monitoring and providing testimony on proposed legislation and federal regulation relative to utilities. The SRA meets quarterly. Page 2 SPECIAL EDA MEETING January 24, 2017 Agenda Number: 2A To: Dave Callister, City Manager Prepared by: Danette Parr, Economic Development Manager Item: Agora -TIF Plan and Development District 1. ACTION REQUESTED: Consider a resolution recommending the City Council adopt a modification to the development program for Development District No. 7 and establish Tax Increment Financing District 7-9 therein and adopt a Tax Increment Financing Plan for the Agora development. 2. BACKGROUND: The Council will be considering this item at the regular January 24, 2017 Council meeting. Knowing that the EDA is made up of the same individuals as the City Council, it is largely procedural. However, it’s legally required that the item come before the EDA in advance of the Councils consideration. For that reason, staff is requesting the EDA recommend the City Council adopt a modification to the development program for Development District No. 7 and establish Tax Increment Financing District 7-9 therein and adopt a Tax Increment Financing Plan for the Agora development. Page 1 CO RD N O 6 CO RD NO 101CO RD NO 6 CO RD NO 24CO RD NO 101CO RD NO 101CO R D 4 7 CO RD N O 4 7 NORTHWESTBLVD(CORDNO61)XENIUM LA (CO RD NO 61)R O C K F O R D R D (C O R D N O 9 ) CO RD N O 6 NORTHWESTBLVD(CORDNO61)OLDROCKFORD RD BASS LAKE RD (CO RD NO 10)ROCK F OR D RDPEONYLNVICKSBURGLN VICKSBURGLNFERNBROOKLNZACHARYLNSCHMIDT LAKE RD S U N S E T T R L S T H W Y 55 STHWY55 STHWY55INTERSTATE494INTERSTATE494DUNKIRKLNDUNKIRKLNMedinaRd CARLS O N P K W Y 36TH AVECHESHIREPKWY City of Medicine Lake TIF District 7-9 Proposed TIF District 7-9 0 0.5 1 1.5 20.25 Miles THIS REPRESENTS A COMPILATION OF INFORMATION AND DATA FROM CITY, COUNTY, STATE AND OTHER SOURCES THAT HAS NOT BEEN FIELD VERIFIED. INFORMATION SHOULD BE FIELD VERIFIED AND COMPARED WITH ORINGIAL SOURCE DOCUMENTS. LEGEND TIF District 7-9 Development District No. 7 City Boundary Lakes Major Roads Roads Railroads City of Plymouth, Minnesota Plymouth GIS Page 2 PLYMOUTH ECONOMIC DEVELOPMENT AUTHORITY CITY OF PLYMOUTH HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. _____________ RESOLUTION RECOMMENDING THE CITY COUNCIL ADOPT A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 7 AND ESTABLISH TAX INCREMENT FINANCING DISTRICT NO. 7-9 THEREIN AND ADOPT A TAX INCREMENT FINANCING PLAN THEREFOR. WHEREAS, there is a proposal to modify the Development Program for Development District No. 7 (the “Development Program Modification”), establish Tax Increment Financing District No. 7-9 therein, and adopt the Tax Increment Financing Plan (the "TIF Plan") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Modification and Plan"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.124 to 469.133, and Sections 469.174 to 469.1794, inclusive, as amended (the "Act"); and WHEREAS, the City of Plymouth (the "City") has investigated the facts relating to the Modification and Plan and has caused the Modification and Plan to be prepared; and WHEREAS, the City has performed all actions required by law to be performed prior to the adoption of the Modification and Plan, and has scheduled a public hearing on the Modification and Plan upon published notice as required by law. NOW, THEREFORE, BE IT RESOLVED by the Plymouth Economic Development Authority (the “EDA”) as follows: 1. The EDA hereby finds that the Modification and Plan conform in all respects to the requirements of the Act; will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; and will increase employment in the state, and preserve and enhance the tax base of the state. 2. The EDA further finds that the Modification and Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Development District No. 7 by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible. 3. The EDA hereby approves the Modification and Plan, as presented to the EDA on this date, and recommends that they be established and adopted by the City Council. Approved by the Plymouth Economic Development Authority this 24th day of January, 2017. _______________________________ Chair ATTEST: __________________________ Secretary Page 3