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HomeMy WebLinkAbout05.12.08 Work Session Minutes CITY COUNCIL / PARKS AND RECREATION COMMISSION WORKSHOP MINUTES May 12, 2008 Acting Mayor Pritzlaff called the meeting to order at 6:30 p.m. Present: Acting Mayor Pritzlaff, Councilmembers Fogarty, McKnight Parks and Recreation Commission members Charlie Weber, Aaron Fitzloff, Tim White, Karen Neal Also Present: Robin Roland, Finance Director; Randy Distad, Parks and Recreation Director; Cynthia Muller, Executive Assistant MOTION by McKnight, second by Fogarty to approve the agenda. APIF, MOTION CARRIED. 2009 Bude:et Discussion Councilmember Fogarty asked for an update on the levy limit. Finance Director Roland stated it has not been set yet. Councilmember Fogarty stated she is looking for minimal growth in the 2009 budget. She realized there are contractual obligations and increases in the levy, but other than that she is looking for a standstill. Councilmember McKnight asked if City Hall was in the 2008 budget. Finance Director Roland stated half of it was in the 2008 budget. Councilmember McKnight stated he could see a 0-5% increase on the levy and felt that would be below any levy limit. Finance Director Roland stated she made the comment at the Council meeting that if we are talking about that level of standstill, there will come a time when it will affect services. Council needs to understand that is possible. Councilmember McKnight replied that is for services. Finance Director Roland stated staff would need to hear what services are acceptable to cut. Acting Mayor Pritzlaff asked if the new City Hall is being paid for through taxes. Finance Director Roland replied yes. Acting Mayor Pritzlaff felt an increase of 0-2% would be possible and stay close to where we are now. He understood having to make up for wage increases and understood services would have to be cut. In the businesses that he works with, a lot of people are being let go. You hate to see it in any market, but he does not want to come off to the taxpayers that we are exempt from doing that. The numbers are low enough and we need to look at services and personnel. Weare not exempt from that and need to hold it tight. Acting Mayor Pritzlaff asked staff to bring back preliminary numbers showing what 0-2-5% would mean in changes. Finance Director Roland replied she can do it in general terms, not specifically. Acting Mayor Pritzlaff agreed. Finance Director Roland stated last year we showed what the contractual obligations are, what the mandated changes to benefits such as PERA, insurance, etc., that we have no control over, what a 0% or 5% levy would cover in general tenns. It will also depend on levy limits. Levy limits have historically exempted debt service which is why we sold bonds to buy equipment. Staffs intent is to come back to the June workshop with that discussion. There is an expected growth of2% according to the county. This includes everything. If it weren't for new construction, we would take a 4% hit; a decline in the tax base. City Council Workshop May 12,2008 Page 2 Parks and Recreation Commission Parks and Recreation Director Distad presented a spreadsheet showing deferred park improvements. The estimated cost to complete remaining improvements is $11,412,172. There are six parks that make up the majority ofthis cost. The larger parks are Fairhill with a youth baseball/soccer complex, Mystic Meadows 2nd Addition park which has an adult softball complex, and Rambling River Park which will be master planned this year. The fourth park is Evergreen Knoll Park. He also presented a 5-year Capital Improvement Plan for 2008-2012. This included neighborhood parks and larger parks which would be paid for through bond referendums. Council was also provided with information on sources of dedicated funding. Sources include: 1. Cash in lieu and park development fees - This depends on the amount of development and whether the City takes land or cash for land. 2. Liquor store profit transfer - There were a couple years where the liquor store did not make enough money to put money into the park improvement fund, and also in the arena fund. 3. Beverage vending contract - There was a five-year contract with the vendor where they dedicated $300/month for park improvements. That contract will end in June 2008. 4. Recycling profit sharing - This started in 2007. It was negotiated in the one-year extension agreement with the hauler to split the proceeds 50/50. This was renewed for 2008. The curbside clean-up is not included; this is for the weekly recycling collected. Councilmember Pritzlaff asked about the cardboard. Staff replied that goes into the solid waste fund. 5. Interest - This depends on the fund balance. 6. General fund transfer - There is no general fund money transferred into the park improvement fund. The current balance is $548,897. There is $369,000 earmarked for improvements at Vermillion Grove Park, North Creek Park, Farmington Preserve Park, and Hill Dee Park. The Parks and Recreation Commission wanted to discuss where to find financing in the future. Do we identify other sources such recycling profit, or cardboard recycling? Acting Mayor Pritzlaff suggested looking at any money that we do not count on on a day by day basis, such as the cardboard recycling and have the revenue go to parks. He also suggested curbside clean-up money, special licenses issued throughout the year; whatever we do not budget for. Councilmember Fogarty stated that is an accounting shift. We would have to fill in the gap in the solid waste budget. She stated the only reason for the City to own liquor stores is to help fund things. She did not like the accounting shift to put the money into the general fund and then move it out. She would rather have the money go straight to the park fund. Councilmember McKnight asked if the commission was looking for solutions to the smaller neighborhood parks, the three larger parks, or both. Parks and Recreation Director Distad stated Councilmember Wilson suggested continuing chipping away at the neighborhood parks through the current funding sources. He felt the larger projects, such as ball fields and athletic complexes City Council Workshop May 12,2008 Page 3 should go to a referendum. When discussing funding from recycling, it encourages people to participate because they know the money is going back into the community. Councilmember McKnight agreed with that approach. The only issue with the referendum is when and how to ask. This is not the year to ask. Mystic Meadows and Fairhill parks are needed. He felt the City needs to meet with the school district to determine when they are asking and when the City will be asking. Councilmember Fogarty agreed this is not the year. She felt the year to ask is 2010. The City will have the land in our possession. It also gives us time to work with interested groups. Soccer and baseball have put aside money. She wants our number lower because she wants the invested groups participating. She would like to see everyone at the table so when we go out for a referendum there are a lot of people who have a vested interest in helping it pass and they have helped bring down the price for the taxpayer who will not use it. Commissioner Fitzloff stated this needs to be communicated to the user groups so they can raise more money. Councilmember Fogarty agreed and suggested the City needs to set the benchmark. Acting Mayor Pritzlaff asked what happens with Mystic Meadows Park if they do not develop. Parks and Recreation Director Distad stated the City has a Letter of Credit for Mystic Meadows for a value of 9 acres. The City could cash it in and buy 9 acres of land south of that development. The Seed family is saying to build the Fairhill Park to jump start the development. There may be an opportunity to work with the developer to put some money into it to help get it started, which would bring in home buyers wanting to live close to a nice park. Mystic Meadows has a large pond, but no park. Parkview Ponds has a park that will be built this year which could cause homes to be built. Acting Mayor Pritzlaff asked if it was worth taking the money for the 9 acres and using it to fund a park or does it have to be used for the actual facility. Parks and Recreation Director Distad stated if we did that, we would buy land south of the development for the adult complex. By that time, maybe the price of land will come down and we can purchase more than 9 acres. Acting Mayor Pritzlaff asked ifthere was money left over, if that could be used for something else. Staff replied you could, but for example 7 acres would not allow for much room. Councilmember Fogarty felt it was wiser to be patient. Staff replied the City has always obtained land through park dedication rather than spending the money. Commissioner White stated he has seen where the Parks and Recreation received donated land and the groups would install the ball fields and run it, but the Parks and Recreation still owns the property. He has worked on a referendum which took 4 years. The City floated the bonds through the state and the Parks and Recreation had to repay it. The businesses bought advertising signs for the fencing and that money was used to pay for the lighting. The Rambling River Center, outdoor pool and arena are aging. With the 2010 referendum, Council was asked if the referendum would also include facility needs besides athletic fields. Councilmember Fogarty stated she needs to know what it will take to keep the ice arena up and running for another 30 years, or if it is not worth the investment. If it is not worth it, she would rather use that money for a new facility. Parks and Recreation Director Distad stated if we invest $1-2 million in the arena, we could get another 30 years out of it. The building is well maintained and structurally very sound. The mechanical system's useful life is ending. We need a new concrete floor with the piping, new compressors, we just got a new cooling condenser, we need a new dehumidification system, new dasher board system, and address ADA issues. The City Council Workshop May 12, 2008 Page 4 problem is people want two sheets of ice. Councilmember Fogarty felt it was worth the investment. It is a fantastic location and she likes the arena. If the school district needs something bigger for their home ice, then they need to come to the table with the hockey association. The arena meets the basic hockey needs, except for one or two big games. Councilmember Pritzlaff asked if it has been totally explored to build another sheet of ice in that location. Councilmember Fogarty stated she understood we could not even rebuild ifthe current arena was torn down. Parks and Recreation Director Distad stated the issue is the flood plain. There is also the issue of not having enough parking. Commissioner Fitzloff asked if there was money earmarked for this. Staff replied it has been identified in the facilities study. Councilmember McKnight asked where the money for the concession stand goes. Staff replied there is an agreement with Youth Hockey because they built the warming house for the outdoor rink. They keep the concession sales as part of paying them back for the warming house. The agreement expires in 2011. In looking at a referendum, Acting Mayor Pritzlaff suggested putting down everything they need, not what they want. When going to the public, keep it to what we need and ask them once, giving them the amounts for each item. Councilmember McKnight stated you have to throw everything on the table to start, and then see what groups are comfortable with. Staff suggested the commission rank the items, bring them to Council, and then take it back to the commission. When it goes to the vote, it is something everyone can live with. Commissioner Fitzloff noted Apple Valley passed a referendum and they had everyone covered. They had something for seniors, a water park, youth complex, and playground. He suggested because of having Lifetime Fitness, rather than going for a community center, we should upgrade the current facilities. It was suggested that a member of the Park and Recreation Commission attend a meeting of the various user groups and ask them to step up so they can begin fund raising. Commissioner White noted everyone has to make sure they are saying the same thing and be upfront with them about the expectations and you cannot change them once you start. Council has mentioned in the past they want to do a referendum with an election. The year for the referendum would be 2010, but it will take a lot of work. The Parks and Recreation Commission will determine the needs and one member will meet with each user group to discuss the referendum. Council will meet with the school district to determine their plans for recreational facilities and referendums. The next discussion was regarding trails. There is no funding source available to overlay trails. Staff has discussed doing them on a cycle, but you cannot seal coat trails, you can only crack seal them. Trails will last 12-15 years if maintained. Staffhas rated the trails as to how they are cracking. There are 42 miles of paved trails. Councilmember Fogarty agreed this could come from the road and bridge fund. The existing City Hall was discussed and what the public process will be to obtain input. Acting Mayor Pritzlaff stated the Council will do a workshop in August when the new City Hall opens. Council has not determined what the process will be. They do want everyone who has an opinion to be at the workshop for public comment. Acting Mayor Pritzlaff felt the old City Hall would be a good location for the senior center. He suggested bringing them over for a tour. The current Rambling River Center would be torn down for parking spaces for downtown. City Council Workshop May 12, 2008 Page 5 Councilmember McKnight stated having this for the Senior Center is his first choice. Councilmember Fogarty felt she did not have enough information. She was not interested in tearing the building down and felt it was too valuable to do that. She wanted to know what everyone in the community was thinking. The original plan was to sell this property and pay down the bonds. There will be people who want to know what happened to that plan. She wanted to make sure there was good reason to deviate from the original plan. The City owns a lot of property downtown. Maybe it is time to let some of it go and let it develop. Her inclination was to not tear it down and turn it into a park. Acting Mayor Pritzlaff noted the City has to maintain 50 ft. around the well site, so the City cannot sell the building because of the well site. The Parks and Recreation Commission members all felt it would be a good site for the senior center. It does not make sense to tear down the building. Councilmember Fogarty suggested part of it could be the senior center and lease out the rest for businesses. It was also suggested to have a senior center by day and a teen center by night. Councilmember McKnight felt there are plenty of places for a veteran's memorial. Acting Mayor Pritzlaff stated the new City Hall will be ready August 1, 2008, and the Council Workshop would be held August 11,2008. It was decided to hold the park tour on October 13, 2008. The Parks and Recreation Commission will discuss how to approach user groups regarding the referendum at their meeting on Wednesday, May 14,2008. MOTION by Fogarty, second by McKnight to adjourn at 7:55 p.m. APIF, MOTION CARRIED. Respectfully submitted, ~/r7~ , Cynthia Muller Executive Assistant