030705 CC Sp AgP
CITY OF SHOREWOOD
CITY COUNCIL SPECIAL MEETING
MONDAY, MARCH 7, 2005
AGENDA
1. CONVENE SPECIAL CITY COUNCIL MEETING
A. Roll Call
B. Review Agenda
2. CITY HALL BUILDING
3. OTHER
4. ADJOURN
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
7:00 P.M.
Mayor Love _
Lizee
Turgeon _
Callies
Wellens
CITY OF
SHOREWOOD
5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927 · (952) 474-3236
FAX (952) 474-0128' www.ci.shorewood.mn.us' cityhall@ci.shorewood.mn.us
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
City Council
Craig W. Dawson, City Administrator A l\.
March 3, 2005 l)1)
City Hall Building -- March 7, 2005, Special City Council Meeting
Backeround: Late in 2003 and into 2004, the Boarman Kroos Vogel (BKV) Group performed an
evaluation of the City Hall structure and a needs assessment of building space. The structural
evaluation noted several deficiencies, particularly related to water around the building and to the
effects oflong-term weathering of the building exterior. The space needs analysis indicated that the
current space is inadequate. While there is a lot of space in the basement, it is not suitable for office
and meeting uses. Thus more space for uses on the upper level is needed.
BKV Group identified four concepts to pursue:
1) "Short-term Maintenance", which are minimum improvements to be done ifno further
changes were to be made to City Hall. (One of the items, replacing City Hall's roof, was done
last fall. It was past the end of its useful life, and a new roof could be considered the cost of
doing business to protect everything in the building.)
2) "Bridge Concept", which would provide additional space until such time that a final decision
were made on the ultimate size and/or configuration of City Hall.
3) "Addition Concept", which would enlarge City Hall by 2,400 square feet and have significant
interior renovations.
4) "New Building", which would demolish the existing City Hall and construct a new 12,000
square- foot building.
General Discussion: In its discussion following the presentation of the report, Council noted that
each concept needed to be more thoroughly evaluated. Based on the information developed,
however, the Council believed that an addition/enlargement or a new building would be the best
long-term uses of funds.
Additional Property?: BKV Group had a simple plan-view sketch showing how the footprint of the
l2,000::t square-foot, one-story Vadnais Heights City Hall, which it had designed, would fit on
Shorewood's site. Given the poor soils that exist east of the middle of City Hall, the footprint should
be placed as far west on the property as possible. In illustration, it appeared that the building would
work far more easily if the City could acquire and use the residential property immediately south of
City Hall. That property, at 5795 Country Club Road, has been listed for sale at approximately
$300,000, and has had multiple offers.
n
toJ PRINTEO ON RECYCLED PAPER
City Hall Discussion
March 7,2005, Special City Council Meeting
Page 2
The property at 5795 Country Club Road is guided Residential. If it were to be added to the City
Hall property, the Comprehensive Plan would need to be amended to designate its use as Public.
Public uses are allowed in Residential zones by Conditional Use Permit.
Financin2: I spoke with our bond counsel about financing that may be done without referendum.
State law that took effect in 2003 no longer requires referenda for long-term general-obligation
("g.o.") financing of such essential municipal buildings as city halls, public safety facilities, and
public works facilities. The financing of land has been interpreted not to be part of that exemption.
According to bond counsel, however, the City Council could approve a pre-financing resolution,
referred to as a "reimbursement resolution", and in it state that the land addition is necessary to
accomplish the City Hall project referenced in the Capital Improvement Plan, and that the City would
amend its CIP to teflect the addition. Bond counsel is prepared to work with staff quickly to draft the
more precise wording appropriate for the resolution.
The most practica}, financing strategy would be to use existing balances in City funds, and to
reimburse those funds with proceeds from the subsequent sale of bonds for City Hall improvements.
"Internal borrowing" is a financing practice that should be avoided and used only when necessary.
Under the present circumstances, it may be the most practical option available.
Cost of Improvements: In its March 2004 report, BKV Group gave a rough estimate of $1.3 million
for the addition/enlargement of City Hall, and a rough estimate of$3.2 million for a new City Hall
(exclusive of any land addition). It should be re-emphasized that these are rough estimates, and were
developed to get a sense of the magnitude of likely costs.
In a first-draft pro-forma for the upcoming proposed $1.5 million g.o.-backed water revenue bonds,
the annual constant-level payments for 20-year bonds would be $95,000. Assuming that this figure is
approximately the same for a g.o. bond for City Hall, $95,000 would add about 2.5 percent to the tax
levy collectible in 2005. For the median value homestead, $337,000, the resulting increase in tax
would be approximately $25. Or, looking at it another way, each $1 million would cost the median-
value homestead 'approximately $17.
2005 Work Pro2ram: The City Hall matter is listed on the 2005 Work Program with a note that
some decision on what to do or what to pursue can be made by June. This item will be important in
developing the 2006 budget.
CITY OF
SHOREWOOD
5755 COUNTRY CLUB ROAD · SHOREWOOD. MINNESOTA 55331-8927 · (952) 474-3236
FAX (952) 474-0128. www.cLshorewood.mn.us. cityhall@cLshorewood.mn.us
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
City Council ~
Craig W. Dawson, City Administrator i
June 10,2004
WhitherCity Hall? -- June 14 Council Work Session
Earlier this year Council received the City Hall assessment report performed byBoarman Kroos
Vogel (BKV) Group. While Council wished to examine all alternatives presented at a later time, the
Council indicated that expansion of existing City Hall, or construction of a new City Hall, seemed
sensible for focusing discussion.
BKV Group identified water as a significant structural issue, and agreed with staff that evaluation of
an associated matter-mold-should be performed. Results could indicate the level of immediacy to
make changes in the facility, and what directions those changes. could take.
The City commissioned Institute for Environmental Assessment, Inc., (IEA) to determine and
evaluate the "fungal contamination" in City Hall. IEA took samples on April 1 , 2004, and, after
taking the time necessary for maturation of the fungi to be measured, issued its report on May 20,
2004. A copy of the lEA report is attached.
Summary ofMaior Findings: lEA's findings and recommendations are summarized on the first page
of its transmittal. It found no fungal contamination in levels that would cause health concerns on the
main level, and recommended that the carpet be "HEP A vacuumed to remove excess fungal spores."
IEA did find elevated levels of fungi on the lower level that could be mitigated.
. Some sheetrock on the north wall of the east storage room had fungal contamination. It
"should be removed under 'controlled conditions'."
. "Efflorescence on the exterior block walls of the west storage room should be cleaned and
sanitized. These remediation actions should be conducted on a regular basis to ensure the
growth does not occur in the future."
These conditions do not indicate immediate environmental health threats in the building. To assure
the health of City employees and visitors, they should be addressed in the near future. Staff will need
to do some research to estimate the expense of performing IEA's recommendations. The City should
have sufficient funds in the Public Facilities fund or in the balance in the General Fund to perform
this work.
#.
'-~ PRINTED ON RECYCLED PAPER
Discussion re: City Hall
June 14,2004, City Council Work Session
Page Two
Other Immediate Concerns: The BKV Group report noted several parts or systems of City Hall
which were deteriorating significantly. Two systems urgently need attention regarding the viability
of City Hall.
. The roof must be replaced. Without replacement, the integrity and safety of the entire
building and its contents are at increased risk. The cost estimate for the roof replacement is
$20,000. It is more of a cost of doing business, rather than a capital investment in the
building.
. The siding on City Hall is failing. There are many signs of rot or other deterioration. Water
intrusion in failed siding will weaken the structural integrity of the exterior stud walls and
destroy insulation. While the siding is less critical compared to the roof, it does need to be
addressed. If a short-term perspective is taken, some siding should be replaced and the rest
treated. The long-term approach would be to replace the siding entirely. This latter approach
could point toward expansion of City Hall using the existing structure.
Scenarios: Council may recall the four concepts discussed by BKV Group. The costs mentioned
below were very rough and meant to be illustrative for orders of magnitude.
1) Short-term Maintenance
The minimum improvements that need to be made - including new roof, siding, and
windows; addressing water infiltration (short-term fixes); making HV AC changes; ADA
accessible restrooms and entry - were estimated to be $215,000. These improvements would
need to be done ifno further changes were to be made for City Hall. Not all of the short-term
maintenance items would be necessary if it were decided that more substantial changes for the
building would be made in the near- to mid-term.
2) Bridge Concept
This is a stop-gap solution to renovate the existing space while planning to expand or replace
City Hall. The guideline cost estimate is $730,000 (in 2004 dollars). This estimate would
include the items addressed in "short-term maintenance". In its earlier discussion,
councilmembers made several comments that this approach would not be a very prudent use
of funds.
3) Addition Concept
This concept would add approximately 2,400 square feet of space and involved substantial
interior renovation, although there would still be space shortages given current industry
standards. The total proj ect cost was estimated to be $1.3 million.
4) New Building
The space study indicated a need for approximately 12,000 square feet of space. The total
project cost estimate of $3.2 million assumed construction on the existing City Hall property.
There are opportunities to add land to the existing site or locating at a different site, but their
additional costs were not analyzed by BKV.
Discussion re: City Hall
June 14,2004, City Council Work Session
Page Three
An issue with either an addition or a new building is the disruption or relocation of City Hall
operations and staff during construction. In the case of an addition, it will likely be more cost-
effective and result in greater building integrity to demolish the upper level of City Hall and build
everything new. In this way, it also may be easier to excavate around the building for mitigation of
water issues. An addition made in this way would be better termed an "enlargement" of City HalL
Staff has not begun research regarding the duration and cost of temporary space.
Timing: Council should have discussion about the optimal timing to make a commitment on any of
the four concepts offered by BKV. Immediate needs may be addressed this year. Short-term
maintenance could be included in the 2005 budget, but may not be prudent if it is decided that the
enlargement or replacement of City Hall should happen within a few years.
Another issue with timing concerns the type of process the Council may wish to conduct in arriving
at a decision.
a) The process about the concept to pursue could be largely an internal one, involving Council
and staff, either as a whole or through a committee.
b) Recommendations from the process in (a) could be forwarded to a review committee, whose
members may include Council, staff, advisory commissioners, and residents.
c) Alternatively, the Council may wish to create a task force to study the issue and develop
recommendations.
d) However recommendations may come to Council for action, if a decision is made to enlarge
or replace (and possibly relocate) City Hall, the Council may wish to have a task force
regarding architectural design, cost, and, if necessary, changes to Badger Park. It would make
sense to have engaged the architect, and perhaps a soils and/or structural engineer, for the
project before this task force begins its work.
These processes will take several months to complete. There are fewer than three months available
before the Council sets its not-to-exceed 2005 tax levy, and about two months after that for
preparation of the Council's final 2005 tax levy.
Financing preferences: The Council should decide ifit wishes to have a referendum to finance an
enlargement or replacement of City Hall. With legislation enacted last year, there is no longer a
statutory requirement for referendum for long-term (greater than five years) financing of municipal
buildings. Financing for land that would take more than five years to payoff, however, is not exempt
from the referendum requirement (although land purchase through the EDA may qualify as a
referendum-exempt option). The lack of referendum removes the need to use the EDA to issue
annual-appropriation (aka lease-revenue) financing, and the City would see the better interest rate it
would have with any other general-obligation bonds. If the Council wants to have a referendum, it is
questionable whether sufficient information and costs can be developed to forward the ballot question
to Hennepin County this fall.
BKV
GROUP
City of
Shorewood
City Hall
Needs Assessment and
Building Evaluation
Study
SHOREWOOD, MN
Final Report
March, 2004
Architect:
Boarman Kroos Vogel Group
222 North Second Street
Minneapolis, Minnesota 5540 I
COMMISSION NO. 1613.01
Q/proj/1613.0 I/pro/program report-summary.doc
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Summary Report
Shorewood City Hall
Shorewood, Minnesota
Comm No 1613.01
BKY
GROUP
Existing Building AudH:
The original city hall structure was erected in 1979, some 24 years ago. The size ofthe original
structure was approximately 78 feet on the eastJ west axis and approximately 48 feet on the
north/south axis. The facility was built to have 2 levels; a basement and a main level at grade. The
main level public entrance to the building is located off of the north parking lot, on the north
building elevation. The basement is a full 13 block courses deep.)
An addition was added in 1988; - approximately IS years ago. The size of the new addition was
48 feet on the north/south access and 33 feet 4 inches on the east! west axis. The floor levels of
the new addition were set to match the existing building
The new addition was constructed adjacent to the east exterior wall of the existing facility so it
butts up against, and is joined to the existing facility to form one continuing structure.
The existing building is generally in fair shape, however there are several significant issues that need
to be evaluated and addressed relative to any current or future scenario planned for the city hall.
Some of these issues include:
The envelope of the building needs to be replaced. This includes siding, windows and roof.
The water incursion in the basement needs to be mitigated and the mold abated. Further
investigation as to water table levels and proximity to foundation construction needs to be
evaluated to understand the long term water issues.
Several ADA accessibility items should be corrected and upgraded with any substantial
modifications.
The HV AC system should be replaced or substantially over-hauled.
The lower level of city hall, though suitable for storage, is not supportive of a productive
work environment.
This report is a first step and outlines in depth issues relative to the physical condition and issues of
accessibility. This report also offers some commentary on possible recommendations. !\Il)'
recommendations however need to be reviewed within the framework of a variety of scenarios
which attempt to outline possible future uses of the building and or grounds and their relative cost
implications.
Q/proj/ 1613.0 I/pro/program report-summary.doc
Summary Report
Shorewood City Hall
Shorewood, Minnesota
Comm No 1613.01
BKY
GROUP
Building 'Frt' Options
The committee studied the impact of 4 basic concept directions to further evaluate the long
term viability of the existing city hall structure. The four options and their possible cost impacts
were studied and evaluated. The four concept directions are as follows:
Short-term Maintenance
This concept looked at items that most likely would need to be remedied to extend the
viability of the existing structure and promote better servicing of citizens and improve the
work environment of employees:
Bridge Concept
This concept looked at providing a short term (maximum recommended life span 3-6 years)
solution to improve various aspects of city hall and plan for a new facility in the near future.
The concept does not add additional space to the existing facility.
Addition Concept
This concept looked at a relatively small addition to the existing facility but one that provided
for needed space and commitment to stay on t~e existing site
New Building on the existing site
This concept looked at the impact of a 13,000 sq. ft. building on the existing site and its
requisite issues.
Conclusion:
The current condition at the Shorewood City Hall provides an opportunity for the City to
review services and facilities and to reposition City Hall for the future. Municipal buildings
should not impede but support the important work of city government. A farsighted approach
to City Hall development is one that determines the long-range plan and systematically moves
toward a comprehensive resolution, not one that invests in stopgap measures, which.
end, are wasteful.
Q/proj/ 1613.0 I/pro/program report-summary.doc
BKV Group
o I .26.04
revised - 02.05.04
Shorewood City Hall Building
Concept Analysis - I 6 I 3.0 I
t\!~_I?'~~I~~
This concept looked at the impact of a 12,000 sq.
ft. building on the existing site and its requisite
Issues.
This concept looked at a relatively small addition
to the existing facility but one that provided for
needed space and commitment to stay on the
existing site.
This concept looked at providing a short term
(maximum recommended life span 3-6 years)
solution to improve various aspects of city hall and
plan for a new facility in the near future. The
concept does not add additional space to the
existing facility.
This concept looked at items that most likely
would need to be remedied to extend the
viability of the existing structure and promote
better servicing of citizens and improve the
work environment of employees.
. Major parking impacts of single story facility
· Possibility of acquiring adjacent property
· Satisfies space needs for the foreseeable future
· Long term solution
· Possibility of minimizing temporary relocation
costs if existing facility could be utilized during
construction
· Adds approximately 2,400 sq. ft.
· Stay in current building
· Some parking impacts on a lot with parking
issues during multiple site events
. Includes all maintenance items from above
scenanos
· Could city business be conducted during
renovation? Moving cost impacts
· Consideration of demolition of entire first floor
of building and re-work
· Could be long term solution
· Some space needs compromises - office space
is under industry standards
· Which items to include? Minimum - New
HVAC, Roof, Siding, Solve water infiltration in
basement, ADA accessible main entrance,
ADA accessible restrooms, new windows
· Not a long-term solution given space needs?
· Concerns about ongoing water issues on the
site?
· Internal renovation only
· Include minimum maintenance items from
above - New HVAC, Roof, Siding, Solve water
infiltration in basement, ADA accessible main
entrance, ADA accessible restrooms, new
windows
· New entry / access
· Conduct council meetings @ New Public Safety
. Stop Gap solution
· Space needs / standards not met
· Contingent on solving long term water problem
· Could city business be conducted during
renovation
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$2, I 00,000 - $2,600,000 construction
$3,200,000 total project
$300,000 - $500,000 construction
$730,000 total project
$600,000 - $850,000 construction
$1 .300,000 total project
$75,000 - $150,000 construction
$215,000 total project