6.6. SR 03-15-2004MEMORANDUM
Item 6.6
TO:
Mayor and Council
FROM:
Pat Klaers, City Administrator
DATE: March 15, 2004
SUBJECT: Discuss Sherburne County Government Center Expansion
Project
The city and county have been in somewhat of a stalemate situation ever since the City
Council stated its position for requiring a Conditional Use Permit (CUP) for the expansion
of the county jail. In an effort to reach a compromise, Mayor Klinzing, Councilmember
Kuester, and myself met with County Administrator Brian Benson, Sheriff Bruce Anderson,
and County Attorney Kathy Heaney on Wednesday, March 10, 2004.
At this time no CUP for the project has been applied for by the county. If the city is going to
require that a CUP be approved prior to the project moving forward, it will likely add time
and additional expenses to the project. I supported the Mayor/City Council asking the
question and raising the issue as to if a CUP was or was not required for the jail expansion
but now at this time, given the current circumstances and situation, I'm also in support of a
compromise that would not require the county to apply for and receive a CUP before they
move forward with their construction project.
A proposed compromise to consider is for the City Council to conduct a public
informational meeting on the jail expansion site plan at the April 5, 2004 City Council
meeting. A site plan review can be conducted by city staff in March and this feedback can be
provided to both the county and the City Council in ~vrifing prior to the April 5, 2004
meeting. At the April 5, 2004 meeting a county staff and city staff presentation can be made
regarding the jail expansion project. Notices can be sent out to property owners within 350
feet of the county property and notices for this public informational meeting can be
published in the StarNews on March 24 and 31, 2004. In this manner, there will be a public
review of the project, which will address such items as landscaping, grading, building
elevations, floor plans, and the overall site plan. If the site plan is reviewed on April 5, 2004,
the City Council will have achieved one of its objectives with this project, which is to have
the public become more informed about the expansion.
S: \ Council~l'at\ 2004~J ailExpansion.doc
It does not do the county or the city any good to be in this type of stalemate. This difference
of opinion could ultimately lead to a legal batde, a delay in the project, and more expenses to
the county when the project actually happens. It is the dissemination of public information
regarding the project that is important at this time and we know that the project will at a
minimum have to meet the city code requirements for such things as property line setbacks
and landscaping standards. If these minimum code conditions cannot be met, then a
variance would be requized. I have no reason to believe that the proposal will requize
significant changes or that there will be staff, Council, or public concerns that are raised that
can not be adequately ad&essed.
Recommendation
It is recommended that the City Council resend its motion that it made on September 15,
2003 and that it conduct a site plan review of the jail expansion at the City Council meeting
on April 5, 2004 at 6:30 p.m. at the school small theatre. This decision would then require
the City Council to change the topic and meeting location of the special meeting that has
already been called for April 5, 2004.
S: ~Council\Pat~2004\J ailExpansion, doc
County
board
agrees
.to. se.ek
ja l b' ds
Project includes
firing range for
sheriff's department
by Joni Astrup
Associate editor
Sherburne County com-
missioners voted unani-
mously last. week to seek
bids for an expansion to the
jail in Elk River.
Btd~wili-be accepted until'
March 5~5. Tha board,will
cotmidor awarding them
April: 6. Cor~.~u~tion is
sch~a~d to l~gm around
April 19.
The project includes:
· a 120-cell jail addition
· a sheriff's department'
training center and 12-lane
firing range which will go
under the jail addition
· a stand-alone mainte-
nance building
· remodeling the medical
facilities within the jail
· a secure elevator going
from the jail to the courts
area for transporting
inmates to court
· several smaller jail proj-
ects
The county sold $15 mil-
lion in bonds to finance the
project in August.
Estimates show the proj-
ect cost at $15,998,000,
about $650,000 over the
target.
"The. true, final number
won't be known until the
25th," Mike McGowan told
the board Feb. 17.
McGowan is with Adolfson
and Peterson Construction.
In another building-related
matter, the board als0 voted
to seek bids for an addition
to the county public works
maintenance facility in
Zimmerman. That project
has a $550,000 budget.
Those bids will also be pre-
sented to the board April 6.
Ad°lfs°n
& Peterson
Construction
February S, 2004
Brian Bensen
Sherbume County Administrator
13880 Highway 10
Elk River, Minnesota 55330.4601
RE: Additional costs for delaying the proposed Justice center e. xpsnsJon
Dear Brian,
Adolfson & Peterson Construction has been retained by ti~e county to provide
Construction Management services for the upcoming Justice Center Expansion, ~'~s ym.~r
construction manager it is our duty to identify the costs associated wiLh not advm'tisir~g
and soliciting for bids in late February as previously scheduled. The contracti6g
schedule has in the past proven beneficial for the Owner to solicit bids for projects tn the
late winter, Dudng late winter many c, ontrac[ors are attempting to get the first job of tt)u
construction season on the books. If the project team misses the late winter bid wiz~,Juw
the project costs could be 2% to 3% more expensive,
Another cost to explore when reviewing ~he timing ot' cons[ruction start i,~3 the cost of
construction in the winter months, This project is currently schedule for a 2?. mol
project. By starting early May 04 the construction is o~<posing the county to the Iil:~t
winter season of nora-completed shell construction. If [l~e contracts were d,,;layed to 90
days the shell would be less complete in the winter of 05 and woukJ n3qulre more
protection in the winter of 06. Thus causing I:l~e additional expense, of wil fl~r co,rfdifionL',
for constructing in an unprotected environment,
The result of the above defined delays of 90 to i20 days could be in the l,mge (ff
$1,250,000.00 to $1,750,000,00
The potential of delay claims from subcontractors could occur if the county proceeds
with advertisement and bidding of bid packages and then the owner decktes to delay th(~
start of the project. This cost would be from contrac[om who were awarded'bid
packages and then requested by the owner to delay constl~c[ion. This cos{ is difficuli b
quantify however it could add hundreds of thousands of doti.3rs to tho finai project cosl.
Sincerely
Adolfson & Peterson Construction
Mike McGowen
Senior Project Manager
6701 West 23rd Sifter BI Mmneopohs, Mirmcsotu 55426 . P.O. Box 9377 , Mbn¢ok, c4;~, M~nnc:.~ok~ 55440
(952) 544-1561 ,, Fax: (952) 525-2333 ~ vw~,v,c,-p,com
~ .FEB, I2.2004 6:27PM EHLERS & ASSOCIATES N0.6918 P. 2
February 12, 2004
EHLERS
& ASSOCIATES INC
Brian Bensen
County Administrator
Sh~rbume County Courthouse
13880 Highway 10
Elk River, lVflq 55330-4601
Re: $15,000,000 G.O, Ia.il Bonds, Series 2003A
You have inquired about the options available to the County if a Conditional Use Pen'nit (CUP)
is required for construction of the jail expansion/'or which the above bonds were issued and if
the CUP either requires changes to the plans or is denied.
If the CUP requ/res significant changes in the or/ginal plans and more fund~ are needed to
supplement the ofig/nal bond issue, the County does have authority to issue additional bonds for
the project. In addition to the additional eomtmetion and architectural/engineering costs, of
coarse, the County would incur additional issuance costs for the new issue, and the annual debt
service requir~anents for the project would be increased.
If the C~ application is denied, and the County is not able to build the jail expansion at all, the
current balance in the Jail Comtmction Fund could be placed into an escrow account and
inve~ted to the call date (8/1/09), at which time the remaining bond, could be called in using
monies in the escrow account and other funds available to cover the balance. The mount
currently in the Jail Construction Fund would be the net bond proceeds, as the County ha~ paid
issuance costs, architectural/eng/neering fees, soils testing, etc. out of the original bond proceeds.
It is unlikely that interest rates available in the escrow account will be a~ high ~ the average
coupon rate on the bonds (about 4%). The result of these two factors will be that the County
would need to levy to make up the shortfall each year caused by investing less than the full
$15,000,000 of bond proceed, and receiving less than 4% p~ year in the escrow account.
Let u~ know if you need more information or would like some projections nm based upon any
estimated additional costs.
Sincerely,
Executive Vice President/Director
L~AD£RS IN
FINANCE
3060 Centre Point~, Dr~w, Roseville, MN 55113-1105 651.697.8500 fax 651,697,8555 www..hl-r$.in~.~om
Ci~ Cotmcil Nfinutes Page 5
January 26,200g
COUNCIL WITH CHANGES TO BE MADE AS NOTED. MOTION CARRIED
5-0.
6. Other Business
6.1
Discussion of Conditional Use Permit for County building.
Mayor Irdinzing explained that she had a discussion with the County Attorney and Sheriff
regarding the conditional use perrmt (CUP) and the amendment to the ordinance regarding
county buildings and that they are not happy with having to come forward for a CUP. Their
main concern was the interpretation by staff earlier as to what would be necessary. The
Planning Director had interpreted the ordinance that there was no need for a CUP. Council
looked at this issue, discussing the intez-pretadon ~ven, and decided that dais was outside the
normal jail function and needed a CUP. The County came back questioning the decision
and the need to amend the ordinance. They indicated that daey wouldn't accept the CUP
process and will challenge the City.
Mayor K3inzing stated that the extension to the j,-dl is not part of a normal function and the
feeling out there at the county that the Council is doing this out of spite is indeed in error.
The Council is acting on behalf of the citizens of ]Elk River. She xvould like at this thee to
have the council reconsider the interpretation of the Planning Director; and for any future
building that would be done, to require a CUP if the request does not tall within normal
functions.
The ordinance amendment ~vas not published, so according to the City Attorney, the
Council still has a window of opportunity and could agree with the Planning Director's
interpretation: Mayor Klinzing suggested having a public hearing but stated we could not
force the County to p~ticipate. She feels the citizens need to have a say about the County
building expansion, which is a large addition and not for a normal county jail function.
Councilmember Motin asked why are they afraid of a CUP? He stated that in November,
Council passed an amench~nent to the code and' nothing has happened on the County's part
since. He questioned what would be the burden on them if they have to come forward with
a CUP?
Mayor I<iinzing stated that she had heard that it would put their bond in jeopardy.
Councilmember Motto questioned whether the bond would be in jeopardy and stated that
the Council hasn't said, '%Ve would oppose the CUP, just that we would like for them to
come forward."
Counc~xxember Tveite stated that he could see rescinding this because of staff giving them
this interpretation.
Councilmember Dietz stated that he is surprised at the Mayor's position now. He felt that
she was the leader in getting this process going and that the issue is that the CounU~ needs to
spend some money to screen the jail from the residents.
Mayor Klmzing stated that she had talked to staff at the County and they stated that they
~vould abide in the future by what is required. She admits that if d~e Council changes its
position, then there is not any legal authority to have a public hearing. She is hearing that
the cost for them for a CUP ~vould be about $250,000.00.
Cit7 Council Nfinutes
JanuaU, 26, 2004
Page 6
Councilmember Kuester stated that she felt the same xvay that, by having a publSc
information meeting, xve could make a record of what was said. She felt that xve owe it to
the citizens to have a meeting, not necessarily a public hearing, but a neighborhood meeung
to keep a record of what was wanted and xvhat xvas said from the citizens.
It 5vas stated that the Coun~ still hasn't contacted the City Staff Review Committee. It was
stated that the Sheriff believes that there is no problem with the neighborhood.
Council_member Modn once again inquired as to what is the burden on the CounU, for a
CUP and would tkis indeed affect then: bond? He felt that Council should require a quorum
of the County Commissioners to attend a neighborhood meeting.
Mayor I<2inzing xvill talk to the Coun~ Attorney and staff was directed to get information to
County Administrator Brian Benson that the City Council is considering action, but is in
need of additional information from the County as to what would be the adverse affect of
going through the CUP process.
7. Staff Updates
7.1
The City Administrator explained that minutes from the Special Meeting of January
20 were not in the packet for approval and had only been distributed to the Cit-y
Council in draft form. He would Like to distribute to staff at the following
morning's meedng and asked for comments from Council.
Councilmember Motto suggested chan~ng in the please "feedback and evaluation
of staff' to "feedback and evaluation ofiversonne/."
7.2
The City Administrator explained that he will not be at the February 9 meeting and
that Building Administrator Steve Rohlf will have a memo regarding the Building
Inspectors' position. He wanted the Council to be aware that the top pay for
current inspectors is above what our pay classification calls for and that the Council
can hire at any amount they wish for the top pay. He noted that pay' ranges might
change when the salary study results are presented later in the year.
8. Adjournment
There being no further business, Mayor ICImzing adjourned the meedng of the Elk River
City Council at 8:26 p.m.
Joan Schmidt
City Clerk
Sherburne County Timeline
February 3, 2003
KKE Architects contact Director of Planning for code interpretation
regarding jail expansion. Interpretation under definition at that time is
that jail expansion is a permitted use.
July 8, 2003
County Board agrees to issue $15m in bonds for jail expansion.
July16,2oo3
Artide in ER Star News, "Board agrees to issue jail bonds"
August 18, 2003
City Council directs staff to research the need for public hearings for the
jail expansion and bring back options for the Council's consideration.
August 27, 2003
Artide in ER Star News, "Klinzing, council question input on jail plan"
September 15, 2003
City Council over-roles Director of Planning's interpretation and
determines that the expansion will require a Conditional Use Permit.
Council directs staff to amend the ordinance clarifying the definition
between jails and court holding cells.
September 18, 2003
Letter sent to County Administrator Benson regarding Council's decision
to require a CUP.
September 24, 2003 Artide in ER Star News, "Board gives nod to jail addition design".
October 28, 2003
Planning Commission considers zoning text amendment darifying the
definitions of governmental buildings and facilities and governmental
offices.
November 17, 2003
City Council considers zoning text amendment clarifying the definitions
of governmental buildings and facilities and governmental offices.
Council approves Ordinance 03-17. Ordinance has not been
published, therefore not in effect at this time.
December 2003
Partial set of floor plans received in Building for review by Lead
Inspector Zajac for preliminary code review.
December 16, 2003
KKE Architects contact Director of Planning regarding variance process
on parking lot expansion. Were informed of CUP requirement.
December 18 & 19, 2003
Written request and response from and to KKE Architects
regarding process for approval and building permit issuance.
December 24 & 31, 2003
Letter from and to Kathy Heaney, County Attorney regarding
City's position and requirement for CUP.