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CC Packet 2008 12 01AGENDA CHANHASSEN CITY COUNCIL MONDAY, DECEMBER 1, 2008, 5:30 P.M. FOUNTAIN CONFERENCE ROOM, 7700 MARKET BOULEVARD EXECUTIVE SESSION: 1. 5:30 p.m. – Discuss Performance Evaluation and 2009 Compensation with City Manager. 2. 6:15 p.m. – Discuss the Future of Historic St. Hubert’s Church. 3. 7:00 p.m. – Truth-in-Taxation Public Hearing. 4. 7:30 p.m. – Discussion of 2009 Budget. Members of the City Council and some staff members may gather at Houlihan’s Restaurant & Bar, 530 Pond Promenade in Chanhassen immediately after the meeting for a purely social event. All members of the public are welcome. 1 CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen MN 55317 Administration Phone 952 227 1100 Fax 952 227 1110 Building Inspections Phone 952 227 1180 Fax 952 227 1190 Engineering Phone 952 227 1160 Fax 952 227 1170 Finance Phone 952 227 1140 Fax 952 227 1110 Park Recreation Phone 952 227 1120 Fax 952 227 1110 Recreation Center 2310 Coulter Boulevard Phone 952 227 1400 Fax 952 227 1404 Planning Natural Resources Phone 952 227 1130 Fax 952 227 1110 Public Works 1591 Park Road Phone 952 227 1300 Fax 952 227 1310 Senior Center Phone 952 227 1125 Fax 952 227 1110 Web Site www ci chanhassen mn us L MEMORANDUM TO Mayor City Council FROM Todd Gerhardt City Manager 6WDATENovember202008 SUBJ Discuss the Future of Historic St Hubert s Church BACKGROUND A lease exists between St Hubert s Church and the City of Chanhassen for the rental of historic St Hubert s Church next to the old Village Hall The lease will expire on December 31 2008 at which time St Hubert s will become responsible for the car and maintenance of the building HISTORY During the 1976 78 time frame St Hubert s undertook a process of determining its needs for the historic building that was vacated when they built a new church across the street The congregation was split as to whether the building should remain as a community building or be demolished or moved The issue was presented to the city and the council incorporated the property into the downtown redevelopment plan which at the time included a central city park that would encompass the Pauly s Bar Bottle Shop old Village Hall the vacated Great Plains Boulevard and the church area Following this decision the city and St Hubert s Church entered into a long term lease 20 years which was to be renewed renegotiated at five year intervals Various community and private groups used the building during 1979 80 Monies received were minor The church had not been maintained for several years and the city completed some major improvements including a new furnace rafter repairs re Ieading stained glass windows a new roof etc From 1980 89 the city entered into a sub lease agreement with Family of Christ Lutheran Church In mid 1989 after Family of Christ moved into their new facility the city entered into a sub lease agreement with the Colonial Church at Chanhassen is a Community for Life Providing for Today and Planning for Tomorrow2 Mayor City Council November 21 2008 Page 2 Heritage Square They moved out in 2002 and the building has been vacant ever since In 1981 the church was placed on the National Historic Register SUMMATION Both St Hubert s Church and the Chanhassen Historical Society CHS have asked to meet with the City Council to discuss the city s interest in collaborating on the preservation of the church Staff has discussed the limited role that the city may play in this collaboration such as providing 13 of the costs of the utilities but no contribution towards maintenance or capital costs Additionally the city would require fee title ownership of the church This would allow the Historical Society to apply for grants and also justify our contribution towards the utility costs My expectation for Monday s meeting is for both St Hubert s Church and the Chanhassen Historical Society to explain their interest vision for the building and to determine the city s interest in collaborating on the building s preservation Attached please find St Hubert s and the Historical Society s interests in historic St Hubert s ATTACHMENT 1 Interests of St Hubert s and Chanhassen Historical Society 2 Utility Costs for Historic St Hubert s Church 3 Information from Daniel J Hoisington Preservation Consultant g admin tgst hubert work session 12 1 08 doc 3 Historic St Hubert s Work Session Facts Current lease with the city expires on December 31 2008 Once the lease expires no activities may be scheduled in the building due to insurance concerns No additional rentals or leases can be entered into due to insurance concerns At time the lease expires payment of utilities will be the responsibility of St Hubert s Currently St Hubert s doesn t have the funds to update the church in order to meet the insurance requirements for use of the building If St Hubert s was not currently in discussions with City and Historical Society representatives it is likely that after the current winter the building would have its utilities shut down to a minimum and locked up for an indefinite period of time It would likely be at least 5 years before St Hubert s would be in a position to update the building for re use The current debt load would need to be under lM to undertake such a project Interests of St Hubert St Hubert has an interest in seeing the building preserved including restoring it St Hubert is willing to implement a fundraising process for obtaining and securing funds to help offset the costs of maintaining and restoring the building St Hubert is willing to pay a portion 1 3 of the on going costs to keep the building running This would include costs for utilities and maintenance St Hubert would require that ownership transfer by October 1 2009 If this doesn t occur we would shut down the building to reduce utility costs for the winter At such time that either the building is severely damaged or destroyed St Hubert s would like to see the ownership of the land transfer back to St Hubert s Any partnership or party agreement that St Hubert s would be a party to would also need to contain language on what would happen to the property if the partnership disbands or if the agreement was no longer in force Interests of Chanhassen Historical Society CHS CHS considers this structure the most historically significant in Chanhassen CHS has an interest in seeing the building preserved including restoring it CHS is interested in raising funds both for preservation and to earmark a portion of funds to help offset utility and or maintenance costs CHS would like to help minimize utility costs by first concentrating on efficiencies through grants to replace the boiler adding window and roof insulation etc CHS would like to better integrate the building into the greater Chanhassen community through public events such as but not limited to o Celebrations similar to the Chanhassen Celebration of History and the Arts held in May and the upcoming Historical Christmas Celebration scheduled for November 30th o A Chanhassen Cemetery Walk possibly including a Halloween event o An Open House in conjunction with Chanhassen s 4th of July events o Weddings and other private events CHS would like to build collaborations with existing Chanhassen civic groups CHS is interested in utilizing part of the space or exhibit space archiving etc 4fttdl1tlll I 4 N co 0 I 0 I ral I en ral I t oci m oen CO en CO 1 1 LI 0 co N CO CO al LI 10 QJ QJ N 0 rtl 0 0 LIi 0 i E E N LI CO QJ QJ 10 10 u u QJ QJ 0 0 OJ rtl I QJ QJ en 10 0 0 LIi m en E E OJ OJ CO QJ QJ I I 0 0 Z Z 110 rtl en jl rtl LI CO N QJO ci N CO LI rtl 0 en N ci o en OJ trrl LI 0 rtl OJ rtl N N 0I rtl I r en N 010 LIi CO 010 I rtl E N E en l en rtl rtl l co rtl N QJ QJ Vl Vl I 0 I en LI OJ J 0 J CO m CO 0 0 LIi t en LIi t I OJ N 10 rtl 0 m rtl N OJ LI COoci N CO N i N en m LI LI I rtl 0 OJ LI en 10 LI OJ QJI U m 0 QJI C 10 I e N OJ 0 e en oci l LI en l OJ OJ en rtl OJ I LI LI COi LI I I m LIi 0 OJ OJ LI 10 N en en CO N N I en N N 0 m N rtl 10 rtl rtl CO CO I I I CO 10 10 en I OJ en rtl IC 0 i 10 i u I 0 I LI LI 10 10 i ii r I CO 0 0 CO j N OJ I N m m 2 CO 0 N N olXt en QJ N N U N I en LI LI Nen j LI LI cxi cxi l rtl LI en 10 10 e en en 10 10 i Iiu QJ I e 1 1 e W eo OW eo QJ 0 QJ e e N S e 0 W 0 W a Qj e a Qj e 0 0 QJ U QJ u X X ii e e QJ u QJ u U C 0 U C 0 ra ra II u II U QJ QJ yterr I fFz 5 HANHASSEN H STOR eAL OelETY Meeting 8 00 a m Friday October 10th 2008 Representatives Present From St Hubert s Church SHC City of Chanhassen CC Chanhassen Historical Society CHS Backaround The three parties last met August 13th to discuss the future of Historic St Hubert s Church At that time it was agreed in principle that we should explore in some manner a collaborative effort to preserve the church it being the centerpiece of historic Chanhassen Ouline of report attached The Chanhassen Historical Society commissioned Dan Hoisington a respected local historical consultant to provide an outline from which we might form a community vision for the Historic St Hubert s Church to include its preservation restoration and potential re use Mr Hoisington posited three questions and recommended two steps that we should consider First should the church be preserved Second who should own the church SHC CC CHS or private developer Finally what can be done with the building Main Hall sanctuary should be maintained as open space to be used for weddings public functions concerts lectures and conferences Other inside space could house Historical Society office library archives and storage a permanent historical exhibit leased office space Outside space could host special outdoor activities during warmer months similar to the Chanhassen Celebration or History and the Arts held in May of this year Step one Draft a master plan build a vision Consider commissioning a re use study Draw from experiences of other historic buildings such as the Hopkins Depot Step two Commission an architectural structural assessment to evaluate immediate and long term needs including a maintenance schedule and long term restoration requirements Collaborative Partners Beyond SHC CC and CHS we should involve as much of our community as possible as we strive to reintegrate the church with the larger Chanhassen community Some possibilities many other local churches the American Legion the Lions and Rotary Clubs Knights of Columbus the Chanhassen Chamber of Commerce the Chanhassen Park and Recreation Department the Fire Department local businesses Next Steps I propose these initial steps begin exploring possible collaborative partners prepare a presentation for the Chanhassen City Council to illustrate our vision and to secure an agreement in principle for the preservation of this critical property Discussion Next Meetina Itf eVlt 3 6 Daniel J Hoisington Preser1Jdtion Consultant POST OFFICE BOX 13790 ROSEVILLE MN 55113 PHONE 651 415 1034 preservation@edinboroughcom 9 October 2008 Dear Mr Atkins and Committee Members I enjoyed our meeting last week You have taken the right steps so far in establishing your organization I offer a few recommendations based on my experience as a historical society director as a preservation consultant and as the author of the history of Chanhassen First should Old St Huberts Church bepreserved This is very simple This is not just another old building There is not a more historically significant building in Chanhassen Although the township was settled years earlier the formation of St Hubert s Parish in 1887 laid the basis for the village Indeed the original plat showed streets named after saints The social life of the village where during the 1920s and 30s everyone was a Catholic except the mayor revolved around the church and school This building is especially important to Chanhassen because the development of the community after World War II led to the demise of most local historic landmarks Second who should own the building Based on my discussions the Archdiocese wishes to e building but retain ownership of the land and the surrounding cemetery This leaves three options 1 the city 2 the historical society or anotherJIolprofit ofanization or 3 a private developer C i Because the land will still be owned by the Archdiocese with limited parking nearby there are significant hurdles to private development My recommendation is that the city acquire and manage the property This arrangement is not unusual in suburban communities in Hennepin County Management can then devolve on a city appointed commission with representatives from the Chanhassen Historical Society and possibly other community groups In fact I suggest that the city consider the creation of a Chanhassen Heritage Preservation Commission similar to those found in Eden Prairie llinnetonka Excelsior and Chaska This would open the door for further funding opportunities 7hird what can be done with the building TIle building will be best served by preserving the main hall sanctuary as a meeting space Indeed this can become a community asset used for public functions concerts and lectures It is a perfect space for weddings and with some work a site for conferences Some space should be allocated to the historical society for a smalllibrarylarchives office space and storage My recommendation would 7 be to develop a top quality permanent exhibit about Chanhassen s history complete with an introductory movie TI1is could draw tourists and serve as an important educational component for local schools The remaining space can be allocated for either nonprofit organizations or even leased to small businesses I suggest that you contact some other nonprofits particularly arts groups Ifthis type of use agreement goes forward however the historical society will have to accept the responsibility to maintain a regular hours of operation b consistent special programming to encourage community use of the building c special outdoor activities during the warmer months Mter all it should be a true community building that enhances the quality oflife of all local residents The city and the historical society would need to negotiate management responsibilities For example who will handle scheduling promotion onsite supervision and cleanup This is the vision but how can it be brought into reality I recommend the following steps STEP ONE Draft a master plan Gather information hard statistics from other similar buildings in surrounding towns the Hopkins Depot for example Begin discussions with other nonprofit organizations Ihis reuse study might run 5 000 to 10 000 Minnesota Historical Society grants can provide matching funds TI1e next round of grants has a January pre application deadline STEP TWO Complete a full architecturaVstructural assessment that includes an evaluation of immediate needs plus a cyclical maintenance schedul This assessment might run 10 000 to 20 000 with Minnesota Historical Society grants available for the study and then later restoration work This is a major undertaking but the alternative is the Ibss of rvitanj k o Chanhassen s past My experience is that once you have taken these steps building the vision it opens doors for additional funds Ifcan help let me know Sincerely f Daniel J Hoisington 8 Daniel Hoisington is fully qualified as a historian under the Secretary of the Intrior s Professional Standards He received a Bachelor of Arts in history from Greenville Co e Greenville Illinois where he graduated with honors He earned a Master of Arts in American history from the University of Virginia and completed all course work for the Ph D degree For twelve years he worked as a museum director heading institutions in J1assachusetts Minnesota Alabama and Virginia For three years he served as president of the Bay State Historical League In 1992 ltIr Hoisington founded a firm to provide consulting services to local historical organizations and preservation commissions He is the author oftwelve books and numerous journal articles In 1998 the Minnesota Society of Architectural Historians honored his book Heritage Preserving Eden Prairies Past with its David Gebhard Award His most recent book A German Town A History 0 New Ulm Minnesota received a Certificate of Commendation from the American Association for State and Local History J1r Hoisington has served as a consultant on numerous historic preservation projects including Recent projects include Historic properties surveys of residential areas of Lake City under contract with the Lake City Heritage Preservation mmission Historic properties survey of the Old frontenac Historic District under contract with the Minnesota Historical SoGie 1 istoric context repo t and histctrt pe treS Jr ey for Kenyon under contract wIth the Kenyon Hentage Preservati m mIsslOn Historic properties survey local historic desJgnations and design guidelines in Henderson Minnesota under contract with the Henderson Heritage Preservation Commission Local historic designations of two historic districts and twelve houses for Winona Heritage Preservation Commission as well as design guidelines for downtown historic districts Historic context report historic properties surveys local historic designations and nomination of National Register Commercial Center Historic District in New Ulm Minnesota under contract with the New Ulm Heritage Preservation Commission National Historic Landmark nomination for the United States Air Force Academy Cadet Area under contract with the Organization of American Historians Historic American Buildings Survey recordation of the Strategic Air Command Headquarters Offutt Air Force Base under contract with the National Park Service National Register of Historic Places nominations for the Dr George Christie House Long Prairie the Hewitt Public School Hewitt St Joseph s Church Meadowlands Crookston Diocese Cathedral Crookston and Alexander Baker E W Backus Schools International Falls under contract with the Minnesota Historical Society National Register of Historic Places nomination for the Kasson Public School under contract with the Kasson Alliance for REstoration Project manager and historian Historic Structures Report Turner Hall New Ulm Minnesota 9 City of Chanhassen2008TruthinTaxationHearingDecember1 20081 10 Required Elements forTruthinTaxationPresenttheproposed2009budgetPresenttheproposed2009taxlevyDiscussmajorchangestothebudgetandlevyHoldthepublichearingforcitizeninputandcommentsDecember1AdoptlevyandbudgetonDecember8 2 11 Budget ProcessPreliminarybudgetssubmitted by DepartmentDirectorsinJulyBudgetreviewedbyFinanceDirectorandCityManagerinAugustPreliminaryTaxLevyAdoptedforTruthinTaxationpurposesonSeptember15DetailbudgetmeetingsheldinOctoberandNovemberTruthinTaxationhearingheldonDecember1BudgetadoptiononDecember8 3 12 Expenditures 2008 2009 ChangeBudgetBudgetfrom20081958200208720066GeneralGovernment2939600310800057LawEnforcement2069600224474985PublicWorks42210045060067CommunityDevelopment1778800187400054ParkRecreation15000015000000TransfersforRoads9318300991454964Total4 13 Revenues 2008 2009 ChangeBudgetBudgetfrom20086563900701439869PropertyTax143780014511009LicensesPermits225000265000177IntergovernmentalRev62110057400076ChargesforServices1575001585006FinesPenalties313000407000300OtherRevenue9318300991454964TotalRevenue5 14 General Fund Expenditure History 9 914 54993183009062400643052 10000000830792086151005637900000078607857860785080000007000000600000050000004000000300000020000001000000020032004200520062007200820096 15 What factors changethebudgetfor2008TotalGeneralFundexpendituresincrease64Wageandhealthcarecostincreases accountfor30670052oftheincreasePolicecontractaccountsfor11940020oftheincreaseIncreasedfuelandutilitycostsaccountsfor12600021oftheincrease 7 16 Tax Capacity Levy Changes Tax Capacity Levies20072008 ChgGeneralFund6833900722894958CapitalReplacement82400082400000MSASealcoating26787526787500GeneralObligationDebt769873582900243LocalStreetImprovements10000001000EDADebt122703122603008TOTALTAX8918351902632712CAPACITYLEVIES8 17 Market Value Levy Changes Market Value Levies20072008 ChgParkReferendum425914612387438LibraryReferendum49070049130001TOTALMARKET9166141103687204VALUELEVIES9 18 Debt Service The debt levy for 2009 remained the same as theprioryearItisourintenttousereservestokeepthedebtlevyflatuntil2010atwhichpointexcesslevybecomesavailabletohelpfundourstreetsrevolvingassessmentfund 10 19 Net Tax LevyEffectsGeneralFundlevyincreaseof58Totaltaxlevyincreaseof295049or3 00 11 20 Effect on HomeownersBelowaresomeexamplesofhowthe2009levywillimpactsomepropertyowners20082009Percent 2008 City 2009 CityPercentValueValueChangePropertyTaxPropertyTaxChangeParcel125300025030011628326184916235490035060012925749089718354740054580031474941515472754654000680200401819761892304059636009646001282153280427612 21 Recommendation Hold continuation hearing if needed onMondayDecember82008AdoptthetaxlevyandbudgetasshownonMondayDecember82008 13 22 CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen MN 55317 Administration Phone 952 227 1100 Fax 952 227 1110 Building Inspections Phone 952 227 1180 Fax 952 227 1190 Engineering Phone 952 227 1160 Fax 952 227 1170 Finance Phone 952 227 1140 Fax 952 227 1110 Park Recreation Phone 952 227 1120 Fax 952 227 1110 Recreation Center 2310 Coulter Boulevard Phone 952 227 1400 Fax 952 227 1404 Planning Natural Resources Phone 952 227 1130 Fax 952 227 1110 Public Works 1591 Park Road Phone 952 227 1300 Fax 952 227 1310 Senior Center Phone 952 227 1125 Fax 952 227 1110 Web Site www ci chanhassen mn us 1 MEMORANDUM TO Mayor and City Council r T Greg Sticha Finance Director IJlFROM DATE December 1 2008 SUBJ Budget and Levy Discussion Staff has now completed all budget presentations for council consideration Prior to setting the final levy the council should review the additional information provided in response to questions or new information that has been received since the preliminary levy was set back in September Healthcare and Wages Healthcare costs came in at a 9 increase as opposed to the anticipated 25 increase which was in the preliminary levy This will save the general fund 36 000 Staff has set wage increases at 3 5 as instead of 4 5 which saves the general fund 17 000 Fuel Costs We have also revised the line item for fuel costs due to the reduction in fuel costs we are seeing which results in a 45 000 savings These three reductions total 98 000 Elections In 2006 the city spent 41 000 on the election and we are estimating the final cost of the 2008 election to be around 48 000 Utility Costs The Council requested that the utility budgets of city hall and the library be reviewed In 2008 the library budget for utilities was 67 000 In 2007 we spent 72 000 and we are on track to spend 75 000 in 2008 The preliminary budget for utilities at the library was 90 000 Based on the moderation of fuel and gas prices staff feels comfortable lowering this budget line item by 10 000 to 80 000 In 2008 city hall utility costs are budgeted at 54 600 We spent 52 000 in 2007 and are on track to spend about 56 000 in 2008 Therefore staff feels comfortable lowering this line item for 2009 to 60 000 down 8 300 from the original preliminary budget of 68 3 00 Delaying Projects Staff was also asked to review programs and projects that could either be delayed or re allocated for other higher importance projects and or to prepare for the shortfall of building permit and other revenues in 2009 Chanhassen is a Community for life Providing for Today and Planning for Tomorrow23 Budget Wrap Up December 1 2008 Page 2 Staff has prepared a spreadsheet with the list of resources available and the needs for various projects in the city All of the items listed could be used to either lower the levy for our street reconstruction costs in the revolving assessment fund for future utility costs on the new public works building to set up a new park maintenance reserve fund for maintaining our park and trail systems or for a contingency in case of revenue shortfalls in the general fund in 2009 RECOMMENDA TION After reviewing all the needs listed staff recommends the following The first recommendation is to use 100 000 of the resources cuts available to maintain the levy at 10 074 565 This results in a levy increase of 2 4 but no property tax increase for the average home in Chanhassen and in most cases a property tax decrease The second recommendation is to use the remaining 16 300 from the previously noted cuts and the following Elimination of the Maple Leaf publication Delaying the Citizen Survey Delay hiring the police patrol position to 2010 Remaining portion of previously noted cuts Total 10 000 16 000 20 000 16 300 62 300 This money would be set aside for future increased utility costs associated with the new public works facility The last recommendation is to use the 217 000 for sealcoating in 2009 only as a contingency in case of revenue shortfalls in the general fund Staff looks forward to reviewing the recommendations listed above as well as any other ideas City Council has for any of the items listed above or on the attached spreadsheet A TT ACHMENTS 1 Wrap up discussion spreadsheet 24 City of Chanhassen 2009 Wrap Up Discussion Reduction of Expenses Needed Levy Levy Goals Reduction to Get to Preliminary Levy Reduction to get to Zero Increase on Avg Property Tax Bill Resulting Levy Increase 44 551 100 000 Resources Cuts Adjust Wages from 4 5 to 3 5 Healthcare Costs adjusted from 25 increase to 9 increase Adjust Fuel Costs Adjust Utility Costs at Library Adjust Utility Costs at City Hall Amount 17 000 36 000 45 000 10 000 8 300 116 300 Resources Cuts with service reductions Eliminate Maple Leaf Conduct Citizen Survey every four years rather than every two Don t do Sealcoating in 2009 1 4 Patrol position in 2009 Delayed until 2010 Catastrophic Reserve Fund 10 000 16 000 217 000 20 000 1 300 000 Needs Lower Levy Revolving Assessment Construction Fund Develop a Park Maintenance Fund for future maintenance and improvements to existing parks Utility Cost increase for new Public Works Building Contigency Plan for revenue shortfall in 2009 10 130 014 10 074 565 3 0 2 4 25