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HomeMy WebLinkAboutBudget Advisory Commission - 06/07/2012 UNAPPROVED MINUTES BUDGET ADVISORY COMMISSION MEETING THURSDAY,JUNE 7, 2012 6:30 P.M., CITY CENTER 8080 Mitchell Road EDEN PRAIRIE, MN COMMISSION MEMBERS: Chair Rick King; Commissioners: Annette Agner, Eapen Chacko, Dan Funk and Chris Nylander CITY STAFF: Sue Kotchevar, Finance Manager; Tammy Wilson, Finance Supervisor; Paul Sticha, City Facilities Manager; Carol Pelzel, Recorder I. ROLL CALL/CALL THE MEETING TO ORDER Chair King called the meeting to order to 6:33 p.m. Commissioners Morris and Muilenburg were absent. II. MINUTES A. BAC MEETING HELD THURSDAY,APRIL 12, 2012 Chacko said he felt there were too many "we" references in the second paragraph of Item III on Page 1. The Commission agreed to change the first"We" in the second sentence to read"The City". Chacko questioned the meaning of the third sentence in the third paragraph on Page 3. The Commission agreed to remove the following sentences from the third paragraph; "Chacko noted in the worst case scenario we have to get a $17 per square foot. He asked what type of tenant we are looking for." MOTION: Chacko moved, seconded by Funk, to approve the minutes of the April 12, 2012 meeting as amended. Motion carried 4-0-1 with Nylander abstaining because of absence from that meeting. III. ECONOMICS OF CITY CENTER King indicated the Commission's goal should be to complete their report on a recommendation to the City Council for the City Center facility by their July meeting and have it submitted to the City Council at the end of July or the first part of August. Kotchevar said generally this is a good report and suggested they include more information for City Council consideration including supporting documentation. King said they could discuss under which scenario the Commission thinks selling the building would be advantageous. This building does have a greater value but everything else does Budget Advisory Commission Minutes June 7, 2012 Page 2 too. King said he cannot think of a scenario where it would be more valuable to build a new facility somewhere else. Kotchevar said the only scenario would be if they got an absolute right buyer. King said it would have to be a compelling case to cover a transition build. He is open to the idea but is not sure what it would be. Nylander said he reviewed the various numbers provided and he could not find an economic reason to sell the City Center facility. In terms of jobs, this facility still suits the need and from an economic standpoint he could not make it work to sell the building. Kotchevar said it might be worthwhile to put that data in the report and to quantify it. She suggested they include in the report the grid prepared showing the various options. The Commission reviewed and edited the report on their recommendation to the City Council for the City Center facility. Kotchevar will add in definitions for the various options and will verify numbers used for square footage costs. MOTION: King moved, seconded by Nylander, to approve the document dated June 7, 2012; the Commission's recommendation for the City Center facility subject to adding a column of definitions and one more read through by the Commission members with responses to Kotchevar by June 21. The motion carried 5-0. IV. ADJOURNMENT King asked Kotchevar if she knew of anything else the Council wanted the BAC to consider. She said she was not aware of anything at this time. King suggested they ask the City Council what the BAC's role would be for the 2013 budget and how they can play an effective role in the budget preparation. Chacko said he would like to review the utility fund rate changes and to receive an update on the status of that fund. Kotchevar said there is information on this fund included in the December quarterly report and she will provide the Commission with a copy of that report. So far the City has not had a lot of build up in that fund since it has only been one year since the new rate structure was implemented. King recommended the July BAC meeting be cancelled since they seem to have their recommendation to the City Council pretty much complete. They do need to have by the August meeting topics that the Commission will need to move on. In response to a question from Funk, Kotchevar explained the City Manager will decide on when the report on the City Center facility will be presented to the City Council and if there is time at a workshop. She will let the Commission know when the report will be presented to the Council. Kotchevar reported the Council approved the first ordinance of the franchise fee and discussed the Mayor and City Council pay. She said the City Council appreciates the Budget Advisory Commission Minutes June 7, 2012 Page 3 work the Commission does. It is very helpful for the Council to have an outside party provide them with information on various items. King mentioned some Commission members' terms will be up and there will be appointments made for January. He suggested if Commission members know of someone who is interested in serving on this Commission they encourage them to do so. Kotchevar said last time interviews were held in October and openings were advertised in August and September. She said King, Nylander, Muilenburg and Chacko's terms on the Commission are up. MOTION: Motion was made by King, seconded by Nylander, to adjourn the meeting. Motion carried 5-0. The meeting was adjourned at 8:00 p.m.