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HomeMy WebLinkAbout6.d. Minutes of October 12, 2005 Council Work SessionITEM #6 0 ROSEMOUNT CITY PROCEEDINGS CITY COUNCIL WORK SESSION OCTOBER 12, 2005 Pursuant to due call and notice thereof a City Council Special Work Session was held on Wednesday, October 12, 2005 at 6.30 p m. in the Council Chambers at City Hall Mayor Droste called the meeting to order with Council Members DeBettigmes, Baxter, Shoe Corngan, and Sterner present Also in attendance were City Administrator Verbrugge, Assistant City Administrator Weitzel, City Clerk Jentmk, and City Engineer Brotzler Mr. Verbrugge requested Council to consider the liquor ordinance first on the agenda Mayor Droste agreed with the change to the agenda. Off Sale Liquor Ordinance City Administrator Verbrugge opened the discussion on amending the number of allowed off -sale liquor licenses which is now set at two with a population growth requirement of 6,500 per license. Mr. Verbrugge offered two options, phasing m additional off -sale liquor licenses or allowing the market to regulate the number of off -sale hquor operations without limits. Mr. Verbrugge spoke with the Assistant City Administrator of Eagan who reported their Council decided not to limit the number of off -sale liquor operations. Mr Verbrugge noted that a real consensus from City Council has not evolved and he encouraged further discussion. Council Member Baxter stated the intent of this Council would be to go to a market based limit. Mr. Baxter noted that future Councils would have the authonty to change this ordinance yet again. Mr. Baxter reminded Council that relatively recent decisions had been made by business owners based on the standing ordinance. Mr. Baxter believed it would be reasonable to give these business owners two years, to January 1, 2008, before removing the off -sale liquor license limit. Mr. Verbrugge inquired if there would be a change to the population requirement. Mr. Baxter suggested leaving the population requirement which would allow one more hquor store at the population of 19,500. Mayor Droste recalled when the 2000 U.S. Census Data of 14,600 was used as a way to buy time as development occurred. Mr. Droste said by using the Metropolitan Council's census data an eighteen month delay is automatically implemented to the population growth. Council Member Sterner believed that Council, at that tine, was aware of the delay and decided to use the more conservative population figure by Metropolitan Council. Staff and Council discussed how the City's population is estabhshed. Mayor Droste indicated he believed that population is not a consistent way to measure market needs. Mr Verbrugge pointed out that markeung for existing businesses could not be forecast unless specific data was obtained from them. Council Member DeBetngnies posed the question, if it is proper for the City to determine market strategies. Mayor Droste preferred that the City would not be the gatekeeper on the expanding business market. Council Member Shoe Corrigan stated the Council cannot verify how one business impacts another since there is no way to measure compennon. Police Chief Kalstabakken reported that off -sale liquor stores do not generate any more police calls than any other retail sales business. Mr. Kalstabakken added that most of the police calls deal with bad checks or shoplifting. Mayor Droste emphasized that public safety is not an issue for off -sale liquor stores. Mr. Sterner spoke to Farmington's municipal owned liquor store manager, who stated a population of 10,000 would support his business. Mr. Sterner believes in free trade, and supply and demand 1 ROSEMOUNT CITY PROCEEDINGS CITY COUNCIL WORK SESSION OCTOBER 12, 2005 and stated he suggests a sunset date that would phase m additional off -sale liquor stores. Mr Sterner suggested that a distance limitation of 2000 feet between off -sale hquor stores would guide off -sale liquor stores to new development areas. Mayor Droste reported that Chanhassen has set off -sale liquor license limits, but has allowed three liquor stores in the same shopping center. Mr. Droste said this works because it is a convenience for shoppers. Ms. Shoe Corrigan recalled when commercial space was very limited and Council wanted to provide residents with a variety of retail stores. Now that market studies have been conducted and development is occurring it is not up to her or City Council, but the individual businessman and the market, to determine what retail business develops in the City. Ms. Shoe Corrigan stated that there should be movement toward a goal of an open market for off -sale liquor stores. Ms. Lindquist noted that staff is working hard to bring development into Rosemount. She stated there is a market for liquor stores now and she would not suggest a separation clause within the ordinance. She stated that a separation distance would likely prohibit locating a hquor store in the Steiner development on Highway 3 and County Road 42 Ms. Lindquist pointed out that staff would prefer to have an ordinance that would be flexible and allow available commercial space to be filled to capacity. Mayor Droste suggested a compromise with a sunset date of June 2007 to remove all limits on off sale liquor stores. Mr. Droste recommended the City should be consistent. Ms. Shoe Corrigan recommended increasing the limit to four. This would allow utilization of available commercial sites. Mr. DeBetugmes beheved a separation distance would not benefit the evolving market place. He stated that smnlar businesses often locate near each other and then offer some different quality, costs, convenience, or familiarity Ms Shoe Corrigan stated she was sympathetic to Rosemount Liquor Mart. She also stated she needed to look at long -term goals for the City of Rosemount. One of Council's primary goals is to attract downtown retail development. Mr. DeBettignies agreed and noted that with marketing strategy changes the current liquor stores would be able to maintain their businesses. Mr. Baxter noted that once the market is open existing grocery stores could also add off -sale liquor sales. He pointed out that it may be unwise to regulate business by population and added that a liquor store is not a compelhng reason to change an ordinance. Mr. Sterner mentioned other businesses have left Rosemount when new competition located here. He suggested a phased approach to the ordinance to give time to current businesses. Mr. Verbrugge requested clear direction for staff to proceed. He stated two options that stood out; 1) go to open market or 2) phase in a change Mr. Verbrugge noted the ordmance could also be left as is. Mr. Verbrugge said he will, draft an ordinance that removes the population based limit consult the city attorney about sunset clauses and phasing options, and present the first reading at the November 1 regular meeting 2 ROSEMOUNT CITY PROCEEDINGS CITY COUNCIL WORK SESSION OCTOBER 12, 2005 Fire Station No. 2 Assistant City Administrator Weitzel reported that the Fire Station bids were opened on Thursday, September 29, 2005. Todd Christopherson, from AMCON, reported results to the City Council following the October 4, 2005, regular City Council meeting. A total of 89 bids were opened which was below the 140 bids anticipated Ms Weitzel introduced Todd Christopherson from AMCON to explain the bid results. Mr. Christopherson noted there was not one single reason for the low number of bidders, but a combination of national and regional issues that affected the outcome: 1) energy /fuel cost increases and 2) Humcane Katrina causing marketplace uncertainty. Mr. Christopherson further stated that an adjusted increased cost estimate of $75,000 was necessary due to underestimating. The cost overages resulting from the bids were approximately $400,000. Mr. Christopherson recommended that the City reject the bids, revise the plans and specifications, rebid the entire project m late January, 2006, and have construction begin m April Mr. Christopherson believed there would be favorable results with the January bid opening Mr. Verbrugge pointed out that Inver Hills Community College had a project that recently had a cost estimate of $1,000,000 over budget which supports the unnmelmess of the bidding atmosphere. Council Member DeBettignies questioned if steel and wood producers may over produce due to the needs incurred after Hurricane Katrina Mr. DeBettigmes suggested that if there is a surplus m spring, then prices may again drop and it may be a good time to take advantage of price savings. Mr. DeBetngmes pomted out that steel prices are holding at a level pnce right now. Council Member Shoe Corrigan inquired why redesign is being considered She noted the design was based on Fire Station No. 1 and the City hired the same architect in order to save money. Architect Mark Vetter stated that some revisions could be made to the exterior rock face or by acquiring matenals called for in the specifications Revisions could be in the areas of jumbo brick, canopies, clock tower, and roof changes. He explained that if the brick is changed then the plan would require new drawings. Mr. Vetter noted that cost estimates for architectural services could be provided to Council. Mayor Droste inquired what the engmeermg /architectural costs might be. Mr. Christopherson stated it would be dependent on the scope of changes, but he would estimate it would not exceed $50,000. Mr Droste stated he did not appreciate restarting the project but realized it may be necessary Mr. DeBettignies inquired if the size of the building would be affected. Mr. Christopherson suggested that the size of the building not be changed Mr DeBettigmes also mgmred if any of the bids could be accepted at this time. Mr. Verbrugge replied the grading bid could be accepted and the site prepared Mr. Christopherson then talked about the bay doors and metal roofing panels and noted that substitutions could be allowed in the specifications to encourage more bidders Ms Shoe Corrigan stated she was disappointed AMCON had not made an accurate estimation of the building costs. Council Member Baxter stated he believed it would be best to reject the bids and decide if the increased cost will allow the fire station to be built without going back to the residents for approval and additional funding. 3 ROSEMOUNT CITY PROCEEDINGS CITY COUNCIL WORK SESSION OCTOBER 12, 2005 Council Member Sterner noted that supply and demand likely influenced the bid results and stated he felt most of the bids should be rejected Mr. Sterner stated if some of the bids are reasonable and fit our needs they should be accepted Ms Weitzel asked how extensive of a reduction m construction costs Council expected by the next work session Mr. Verbrugge stated that if the conditions remain the same when rebid the project may have to be scaled back. He noted that the bonding would not be affected, but decisions regarding the 2006 budget may be altered to redirect funds to any increase for Fire Station No. 2 Mr Droste pointed out the fire station is for pubhc safety so it is justifiable to taxpayers, but the cost must be within reason Mr Verbrugge noted that $300,000 was removed from the Capital Improvement Plan budget. Mayor Droste suggested eliminating the Space Needs Study in 2006 which would allow $30,000 toward the fire station. Mr. Sterner inquired about pros and cons of the first fire station and issues with finance and budget. Mr. Christopherson recalled that Fire Station No. 1 bids came in 1% under the estimated cost and one -half of the $70,000 contingency allowance was used in the project Mr. Christopherson noted that the cost per square foot bid m the Fire Station No. 2 is higher than he has seen in other government buildings of similar size. This may be an anomaly that could be corrected when re -bid. Staff was directed to receive bids and award the excavation and site utilities at the November 1, 2005 regular City Council meeting Mr. Christopherson hoped for stronger competition and good bid results in January. Mayor Droste called for a break at 8:20 p.m. The meeting was reconvened at 8:30 p.m. Final Draft Comprehensive Water Supply Plan City Engineer Brotzler presented the final draft of the Comprehensive Water Supply Plan. Mr. Brotzler noted the recent adoption of the 42 Land Use Plan has played an integral part of future comprehensive plan amendments. Mr. Brotzler also advised that a water rate and sanitary sewer rate study will be conducted to implement new utility rates next year. Kevin Newman and Nancy Ziegler, from WSB Engmeermg, gave a brief overview of the Comprehensive Water Supply Plan. Mr. Newman forecast the future build -out of the city and how that affected the water supply There axe currently 4,900 acres served by water and when Rosemount is fully developed there will be 16,600 acres that will require water services. Today water usage is 2 million gallons per day with a peak demand at about 5 million gallons per day. Using the Land Use Plan an estimated water demand m 2025 should be 22 million gallons per day with a peak demand of 31 million gallons per day Mr. Newman discussed the wells required to meet the demand. Three water treatment plants may be necessary when the city is fully developed. Mr. Brotzler explained that two sites have been selected for water treatment plants; one is next to the Bacardi water tower and the second one is in the Rosemount Business Park. Mr. Newman stated more storage will be needed as the population grows to meet peak hour demands. Mr. Brotzler noted that the Utilities Commission has made a thorough review of this document. Mr. DeBetngmes inquired about ground water storage. Mr. Newman stated ground water storage would be held in concrete below grade. Ms. Ziegler explained the water treatment plant is often necessary to remove chemicals that are not a health threat, but may cause smells, tastes, or color issues Mr. Brotzler noted that some communities have water sources that contain radium which requires a treatment plant for removal Mr. Brotzler explamed raw water hnes are necessary to run 4 5 ROSEMOUNT CITY PROCEEDINGS CITY COUNCIL WORK SESSION OCTOBER 12, 2005 water to and from the treatment plant. The raw water lines will need to be added to the infrastructure, as development occurs, by following the data in the Comprehensive Water Supply Plan Mr. Sterner asked about water storage. Mr Brotzler explained it takes a year to build a water tower in addition to drawing the design, receiving approval from the Department of Health, and acqunrmg land for a site Plans for the next water tower should start in 2007 for a completion date in 2010 Mr Baxter inquired how large items like this are financed. Mr. Brotzler answered the Utility Core Funds, which is built up by a portion of each water customer's bill, and also financial bonds. City infrastructure and trunk improvements are based on this document Mr. Brotzler noted that Flint Hills Resources have their own water wells and do not contnbute to the increased water needs Mayor Droste thanked Kevm Newman and Nancy Ziegler from WSB Engineering for their presentation Downtown Redevelopment Communications Council Member Shoe Corngan requested discussion regarding the Downtown Redevelopment and communications with affected businesses. Ms Shoe Corrigan has had several conversations with property owners who are not happy with CPDC and the manner that business has been conducted Ms. Shoe Corrigan stated that the City and staff need to rebuild their relationship with property owners and businessmen. Mr. Verbrugge expressed the frustration m the initial stages of the redevelopment because information was forthcoming so slowly and there was nothing new to report. Mr. Baxter stated that uncertainty is difficult for business owners who need to order inventory and make decisions Mr. Verbrugge reported that other cites have experienced the same reaction when redevelopment occurs. Ms. Shoe Corrigan stated that CPDC needs to treat business owners more like customers and use their marketing skills Mr. Baxter noted that communications work both ways and some of the property owners and renters have not participated m open meetings. Mr. DeBettignies suggested using a form letter to survey the property owners. Ms. Lindquist reported that Dr Hansen has not returned calls or been open to discussion. Ms. Lindquist noted the communication between the appraiser, CPDC, the City, and the property owner /leaser has not always been clear. Mr. Tompkins, President of CPDC, plans to meet each owner to purchase their property. Mayor Droste stated he would prefer that the rumor mill be more controlled and that relocation information be made available to other businesses in addition to Core Block East. Mr. Droste reminded staff they should be contacting property owners with information long before the newspaper prints an article on it. Mr. Droste stated that a consistent message, even if repeated, is needed since it is proven people need to hear something two or three nines before they act on it. Ms Lindquist stated that the relocation site is a limited resource being only 1 5 acres. Ms. Shoe Corrigan recalled from the Downtown Committee that home businesses would be allowed as a transition phase on 145 and Cameo Avenue. Staff requested a selection process for determining which business(es) could use the relocation site. Mr Droste pointed out that if the City purchases the Genz -Ryan property in Rosemount, it may be another relocation site. Ms. Lindquist inquired how much the City may support relocation of businesses; would the appraised value be honored or more; and, how is the Port Authonty and City ROSEMOUNT CITY PROCEEDINGS CITY COUNCIL WORK SESSION OCTOBER 12, 2005 Council going to support it. Mr. Verbrugge beheved the lease rates would be $20 per square foot in the new building which is higher than leases now incurred by businesses in Core Block East. Ms. Lindquist reported the next Downtown Redevelopment meeting is on November 2. Mayor Droste directed City staff run the meetmg and not allow misuse of this public venue. He requested the meeting be structured to include a presentation and a lixruted time for pubhc comment. Mr. Baxter stated he or other Port Authonty members would be willing to chair the meeting Mr. Verbrugge stated it is difficult to refute negative information and one cannot argue perceptions and emotions. Mr. Verbrugge stated that inaccurate comments by the public would be corrected. Mr. Baxter understood that property owners need to know when change is going to happen since not knowing is disruptive. Ms. Shoe Corrigan reported that residents do not want to see the businesses in Core Block East leave. Mr. Droste reminded all that it is taxpayer's money that is used for every transaction made by the City. Mr DeBettignies noted that speculation is not helpful information and the truth cannot harm. Mr. Droste indicated that CPDC hired a space needs consultant to work with business owners. Ms. Lindquist stated no one has hired the consultant yet. Mr. Verbrugge suggested that a Request for Proposal process be used to select the developer for the Genz -Ryan property should the City acquire it This would be an open process that would create the framework and market data necessary fox development. Mr. Sterner reinforced the desire to keep the small town feel in Rosemount. He pointed out there are eight businesses affected by the development of Core Block E and he believed every effort should be made to offer alternatives in a positive light to these business owners. Mr. Droste noted that businesses may not say what their long -term goals are and that is their right to do so. He stressed the importance to keep a good message because it is hard to combat some of the incorrect facts being talked about m the public. Ms Shoe Corngan has heard destructive talk from businesses and would desire cooperative communication UPDATES Mr. Sterner inquired if CPDC Inc. had paid their park dedication fee for the Harmony development. Ms. Lindquist stated the City had not received it, but that was not unusual Mr. Verbrugge reported a drainage issue on Daffodil Lane. A resident at 13466 Danube Lane has experienced flooding with the six -inch ram on October 5 and also m July 2000. It appears to have been built at the wrong elevation, which points to builder error. The emergency over flow dram is also above grade. Staff was directed to arrange to have a survey done to venfy the drainage utility easement and elevation. Mr. Verbrugge reported a traffic accident on Upper 156 Street and Danville Avenue. This location was already a site under study for traffic counts and review warrants for a requested stop sign. Mr. Verbrugge noted extenuanng circumstances are sighthme obstructions and the configuration of the corner Mr. Brotzler suggested following state guideline standards which may not be received well. Mr. DeBettigmes has witnessed many rolling stops m that neighborhood and did not think stop signs would help. This issue will be addressed at Tuesday's regular City Council meeting, October 18, 2005. 6 Mr. Sterner inquired how many of the new park signs have been instilled. Mr. Verbrugge repotted that there are two left to install this year, the latest was at the Family Resource Center. Mr. Sterner announced that there are 25 German students visiting Rosemount for three weeks. Mr DeBettigmes noted concern for intersections that are being used by traffic as if they had a right turn lane when it does not. He cited the intersections at 160 and Highway 3, and 152 and December Trail entering Shannon Parkway He questioned if signs placed in these areas prohibiting use of the shoulder as a right turn would improve traffic safety. Mr Brotzler suggested striping the shoulder next summer. Mayor Droste noted a fund raising event for Hurricane Katrina victims at U- More-Park. Mr Droste commended Mr. Verbrugge for the excellent article that he wrote in the Rosemount Town Pages. Mayor Droste attended a luncheon on October 10 where Flint Hills Resources donated $200,000 to a program to reduce pollution and protect health. The school district plans to make application to that program to retrofit school buses at a cost of $2,500 to $3,000 each to seduce pollution. Mayor Droste noted that a new resident commended the City for their entry signs mto the City. Staff stated that the entry signs are due to be updated m 2007. Mayor Droste announced City Council is invited to attend the Anytime Frmess grand opening on Fnday, October 14 at 10 a.m. Mayor Droste adjourned the meeting at 9:57 p.m. The City Council's Agenda Packet is Clerk's File 2005 -42. 7 ROSEMOUNT CITY PROCEEDINGS CITY COUNCIL WORK SESSION OCTOBER 12, 2005 Respectfully submitted, Linda Jentink, City Clerk Recording Secretary