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HomeMy WebLinkAboutStudy Session Packet 01-09-12STUDY SESSION AGENDA CITY COUNCIL MEETING CITY OF WHEAT RIDGE, COLORADO 7500 W. 29th Ave. Wheat Ridge CO January 9, 2012 Upon Adjournment of City Council Meeting Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Call Heather Geyer, Public Information Officer at 303-235-2826 at least one week in advance of a meeting if you are interested in participating and need inclusion assistance. APPROVALOFAGENDA .1. 2011-2012 Strategic Plan Update £. Acquisition of Martensen 3. Status report on 2010 Comprehensive Annual Financial Report (CAFR) action items. .£+~'-.._.~A~ .... ~ ~ City of • .. ~Wheat&_dge ~OFFICE OF THE CnY MANAGER Memorandum TO: Mayor and City Council FROM: Patrick Goff, City Manager DATE: January 5, 2012 SUBJECT: 201112012 Strategic Plan Update Attached is the Action Outline from the 2011/2102 Strategic Plan. Staff will be present at the January 9, 2012 study session to provide verbal updates on the status of the Action Agenda. ATTACHMENTS: 1. 2011/2012 Action Outlines Mayor and City Council January 9, 2012 Page2 Meetings with the School District were held on two separate occasions to discuss this action item. The School District expressed interest in moving forward and an appraisal on the property has been completed. A negotiated price between the City and the School District for the acquisition has not yet been reached . A neighborhood input meeting was held on Wednesday, November 30, 2011. There were between 40 and 45 residents in attendance. The general feedback was positive for the acquisition of the site. Detailed meeting comments are attached. A Jefferson County Open Space Local Government grant application was submitted for partial funding for the acquisition in the amount of $255 ,720 . The award status of this grant will be available Friday, January 6, 2012 , and the information will be provided at the January 9, 2012 study session. A Community Development Block Grant (CDBG) application was submitted in the amount of $400,000 for this project but was not recommended for funding by the Community Development Advisory Board. Staff is pursuing further discussions with the County to determine if additional CDBG funding is available for this project. Staff may have more infonnation to report to City Council at the January 9 Study Session. FINANCIAL IMPACT: The Open Space Fund could accommodate the acquisition of this property over a five to seven- year period without any grant funding. Any grant funding would lessen the term of the required payments. The use of Open Space funds for acquisition would impact the available funding for moving forward with redevelopment of the site and the building during this time as well as impact funding available for new projects or those projects currently listed in the Parks and Recreation Master Plan. An example of Master Plan projects include updating and redevelopment ofboth Prospect and Anderson Parks. Substitution of this site as a neighborhood park would allow the City to sell the site at 44th and Kendall. If the 441h and Kendall site is sold , the City will request permission from the county to transfer the sale proceeds to the acquisition of the Martensen site. If this is not allowed , the sale proceeds would be required to be returned to the County Open Space fund which was the source of funding for the original purchase. The combined original purchase price of the 441h and Kendall site in 1999 and 2003 totaled $402 ,000. Annual School District operating costs for the building as it stands today are $124 ,472 , and the park maintenance costs are estimated at $35 ,000 annually. These costs would be reevaluated as final programming of the park and building are determined. One-time costs include full or partial demolition of the building, which are estimated not to exceed $83 ,000. Mayor and City Council January 9 , 2012 Page2 BACKGROUND: Both the 1992 and the 2006 Parks and Recreation Master Plan identified this geographic area of the City as in need of a neighborhood park. Approximately two acres of land were acquired in 1998 at the location of 44th and Kendall to address this need. A contiguous .5 acre parcel located to the west was acquired in 2003 to enhance access to the site from the neighborhood from a street other than 44th A venue. The school district is interested in working with the City to reach a mutually beneficial decision for the community regarding this site. They have indicated that the purchase may occur over an extended period of years. COUNCIL DIRECTION: Staff requests direction on whether to move forward with the acquisition and , therefore: 1. Prepare and submit a proposal for acquisition of the Martensen site to the Jeffco R-1 School District 2. Acquire approval from Jefferson County Open Space to move forward with the sale of the 44th and Kendall Site and transfer the dollars to the acquisition of Martensen. ATTACHMENTS: 1. District 2 Neighborhood Park -Area Map 2. Martensen School Site 3. Neighborhood Meeting Notes 4. Annual Operating Cost Detail JM/dr District 2 Neighborhood Park -Area Map Martensen Elementary School 44th and Kendall Property "'"' .. c ~ E .c (,) cu .. :i 3: S» ;:l CD :::::s UJ CD :::::s en n ::s-o 0 -en -· r+ CD Attachment 2 ~~·, .. ~ r City of • ·rnf'Wlieat D irlrTe ~ARKS AND ltECREATit ~~ City of Wheat Rid ge Parks & Recreation Administration 4005 Kipling St. Wheat Rid ge. CO 80033-4125 P: 303.231.1300 F: 303.420.03 16 MEETING NOTES Martensen Elementary School Site Wednesday, November 30, 2011 Wheat Ridge Recreation Center In attendance : (1) Jefferson County Public Schools (40+) public ; (2) Parks and Recreation Commission ; (4) City Council Members (Starker, Davis, Jay , Reinhart), (3) Staff-Manwaring , Murray and Rainguet Manwaring gave a brief overview and power point presentation regarding the purpose of the meeting , background on the Parks and Recreation Master Plan as it relates to developing a neighborhood park near 441 h and Kendall , status of the Martensen school site, and opportunities to purchase the school. Tim Reed with Jeffco Schools and Joyce Manwaring fielded and answered questions regarding the Martensen school site. Citizen Comments/Concerns Noted : ~ Can it be used as a charter school? • Tim Reed noted that the School District felt that developing the site for parks and recreation use would create more an asset to the entire community . ~ Wants something like that in our neighborhood and Martensen is an ideal/excellent location ~ Agree the site should be developed ~ Agree to moving the park from 44th and Kendall to Martensen ~ Do not want to see the site developed as apartments ~ Building needs to be utilized ~ Agree with community concept ~ Did you look into land grant for educational programs? • Tim Reed advised that there is no reverter clause on the site ; he noted that the District feels there is a real opportunity from community standpoint. • Developing the site as a library with room rentals would be a good thing since many families live in the area ~ Sounds like City Council will make the final decision . How will additional funding needs be determined? • Manwaring advised that City Council will expect that information to come from staff. ~ Are you looking at bonds? • Manwaring advised that the City is hoping to get $1 million from various sources including the% cent sales tax through Conservation Trust ; attributable share of Open Space funds ; GOCO grants ; and Jefferson County Local Government Grants-she added that based on funds availability , that is why she noted in the presentation that the project may need to be phased. • She clarified that the first step is acquisition , then development of a master plan first. • There was discussion regarding the size of the building . Manwaring commented that the Recreation Center is a 70 ,000 sq. ft . building and by comparison , the Martensen building is 35 ,000 sq . ft . • Manwaring noted that one consideration is that leaving the building impacts the acres available for park development. • In addition , costs for sustaining the building have to come out of the general fund ; and the question is whether the City can afford to keep the building up and running over time . ~ Is Jeffco going to maintain the building? • Tim Reed advised that the District would maintain it until a transfer of ownership occurs . ~ What happens to the temporary units , they are an eyesore? • Manwaring advised that the City is interested in keeping those for storage ; the City would maintain them . ~ Will City do maintenance/security? Will it be daily? • Manwaring advised that if the property is acquired it will. ~ How is information being communicated to the neighborhood? • Manwaring reviewed the boundary map of the postcard mailing to the neighbors and noted that 550 postcards were mailed . In addition , she noted that the meeting was posted on the website , announced via a website news flash . www.ci.wheatridge.co.us Attachment 3 Meeting Notes -Martensen Elementary School Site Ne ighborhood Meeting , Wednesday , November 30 , 2011 Page 2 of4 ~ Sounds like the City wants to acquire the site • Manwaring concurred and noted that there have been initial discussions with Council and that direction was given to pursue the acquisition. • From the perspective of Parks and Recreation , she noted that the Department feels there are lots of advantages , and thus the recommendation is to acquire the site . • Regarding the 44t h and Kendall site that was originally purchased to develop a park , the City did acquire a % acre to allow for better access to 44 th; however, the Martensen site is larger and has infrastructure in place . • Manwaring noted that much of the decision comes down to the building and what is decided . She noted that the Department is assess ing programm ing needs. • She noted that the 44th and Kendall site was purchased with Open Space funds and that if sold , those funds would go back into the City 's Open Space fund and then could be used to help develop the Martensen site-in other words , it would not be a total loss of funds from the initial investment. ~ Could the School District develop a charter school at the site? • Tim Reed noted that there is no charter school interested . ~ A citizen commented that her son attended Martensen ; he is at college now but would like to see a park there and asked the City to build baseball fields . ~ Another citizen commented that they would like to keep the gym as the area needs a place to play basketball ~ Need something there • Manwaring reiterated the process per her Powerpoint presentation noting that the decision now is whether to acquire the site . Then , if the City acquires the site , the City will gather information on uses as part of the master planning process for the site . ~ Has there been discussion regarding long term lease to save on upfront costs? • Manwaring and Reed advised that there has not been discussion regarding long term lease. • Manwaring noted that there has been one meeting with the School District board . • Reed advised that the School District would prefer to divest ourselves of the site ; would look at option - could do a purchase over time ; however their goal is to divest. ~ A cit izen mentioned that she worked with Edgewater Parks and Recreation and noted that she is aware that they need additional space . Her question was whether the City would work with them to help fund the building. • Manwaring advised that the City can approach them . ~ There was discussion regarding how much the School District pays to maintain the building . A citizen mentioned that he thought it was $300 ,000 . • Reed clarified that the figure the citizen had seen was the annual projected savings to the school district if the school was closed . • Reed advised that he didn 't have the exact costs but could find out and pass along to Manwaring . ~ There was a request to use part of the site as a community garden . ~ Manwaring aga in reiterated that the first step is acquiring the site and that future uses for the site would be discussed as part of the master planning process that would occur if the site is acquired . ~ There was a question about how soon the site would be developed if it was acquired . • Manwaring noted that grant funds , should they be awarded , couldn 't be spent until after they are actually awarded . • She clarified that the park/turf areas could be available immediately. • She added that what will be done will be based on community feedback as part of the master planning process and that funds are budgeted to do the master planning and will be available in Spring 2013 . ~ Is there a possibility that Jeffco Schools would want the building in the future should demographics change? • Reed advised that the current minimum site size to develop a school is 10 acres and that Martensen doesn 't meet that minimum . He clarified that the School District has determined that they cannot afford to have a school if it can 't meet the minimum . • Society has changed and more parents are bringing children to school. ~ If you use facility as ball fields , are there charges? • Manwaring discussed the policy on field use noting that drop in use is free but that there is a charge collected for leagues and special uses . She noted that the fees are being reviewed but that currently it charges teams $15 per child for the season to cover field prep , striping and mowing . • She added that renting shelters in advance is fee based because it allows for monitoring and control of use . Meeting Notes -Martensen Elementary School Site Neighborhood Meeting , Wednesday , November 30 , 2011 Page 3 of 4 ~ How long will the site sit? • Manwaring advised that it is contingent on moving forward with acquisition and funding availability • She estimates a decision in the first quarter of 2012 • She added that the City is currently in negotiations with the School District. • Thus , based on funding , it looks like fall2012 before anything would happen at the site. • Once City Council makes the decision about acquiring the site , an announcement will be made. ~ When will Council decide? • Manwaring advised that it anticipates making a decision in January or February . ~ Any other city services -partnership opportunities? • Manwaring advised that nothing at this time . • She noted that the Parks and Recreation Department has done some assessment of programming needs and opportunities-arts and culture use has been discussed ; staff are looking at costs ; considerations are being given to rental opportunities ; and that the potential is good for all kind of groups . • She added that it is the money that is unknown . ~ Are you as Parks Dept finding a need for additional areas? • Manwaring confirmed that there is a lack of space -specific uses needing space include karate , yoga • Clarified room use at the Recreation Center and discussed programming needs versus rentals. • She noted that a gym is always needed ; however, that the need is for a full size gym and that Martensen is actually smaller than the gym at Anderson Building • Manwaring discussed the Parks and Recreation Master Plan recommendation for replacing the Anderson Building , noting that one option is to eliminate Anderson and put the programs at Martensen . • She noted that there are many ways to evaluate programming needs and that the staff is reviewing those needs. ~ Is there a concern that the building or part of building may have asbestos? • Reed advised that the tunnel had been cleaned out thus the nasty stuff is gone. He added that there could be some vinyl asbestos tile on site , but that the tile can be chipped and removed . ~ What is out reach plan until decision? • Manwaring re-reviewed the timing of a decision by City Council regarding acquiring the site and noting that any decisions regarding use at the site will be gathered as part of the master planning process for the site if the site is acquired . ~ Have we identified consultant? • Manwaring advised that no consultant had been identified at this time . ~ A citizen commented , "If I understand correctly , it looks like the decision is to look at using the site for parks and recreation , and that when a decision is made about acquisition , a determination will be made as to what to do with the site and building ." • Manwaring confirmed that the summary is correct ~ How will the neighborhood be notified? • Manwaring noted that announcements will be made via website postings and news flash , mailings and email for those who provide an email address . ~ Should citizens attend the City Council Study Session? • Manwaring clarified City Council doesn 't take public comment at study sessions . • She encouraged citizens to contact their City Council person . • Councilman Reinhart commented that City Council was very interested in the issue . ~ If a decision is made to acquire, can future meetings be held at Martensen to ensure better turnout? • Manwaring noted that based on her experience with other past neighborhood meetings , the turnout for this meeting was very strong and impressive . • Reed advised that the Martensen site is currently mothballed and not suitable for meetings-in addition , there is no furniture on site . • A suggestion was made to consider Trinity church as an alternative meeting location . ~ Citizen commented that they were thrilled to hear that time is of essence as it is not doing the property any good to sit vacant and unused . ~ Would like to see multi-purpose space with park and buildings . ~ There were concerns about who will be monitoring the building for security currently and after an acquisition is made • Manwaring confirmed that School District is providing security at this point ; and that if the City acquires the site , it would be monitored by the City 's Police Department. • She commented that the City does know that the more activity at a park , the more it cuts down on improper activity . Meeting Notes -Martensen Elementary School Site Neighborhood Meeting , Wednesday , November 30 , 2011 Page 4 of4 SUMMARY OF COMMENT FORMS SUBMITTED Comment forms were distributed to meeting attendees . A total of five forms were returned with the following comments : ~ Use for building : rent out , part as art studios with a lease condition that each artist lead projects with Wheat Ridge students to create public artworks . ~ (1) Hold meetings in neighborhood . (2) Love the park idea I community gardens I preschool use I day camps . (3) Use social media to reach residents . ~ (1) Can a library be added to the park? (2) Daycare for low income people would be an idea for use , being a single mother of three-12 hour access . (3) Party rental space would be nice for birthdays . (4) Making the building 2 or 3 stories for better space . (5) After school day care/programs that are affordable. ~ It seems that a park utilizing as many of the existing amenities as possible is the most logical choice . While finding an effective use for the building would be ideal , the cost to update the building may be counter productive , making it in everyone's best interest to tear it down altogether. ~ (1) We are 100 percent for a park. (2) Repurposing the school building for a community center I recreation center is great. (3) I would like to see the footprint of the building reduced to allow more park space . (4) Community garden also? .... ~·<( .... ~ r City of • _.fP!'Wheat&_,dge ~ARKS AND RECREATION Memorandum TO: Mayor and City Council THROUGH: Patrick Goff, City Manager FROM: Joyce Manwaring, Parks and Recreation Director DATE: January 9 , 2012 SUBJECT: Martensen Elementary School Site Operation and Maintenance Costs Below are estimated annual costs for the operation and maintenance of the: 1) Martensen School building; and 2) Park maintenance Estimated one time costs for three options on building demolition are also listed . 1) Martensen School Martensen School is 31 ,135 sq. ft. which is a little less than halfthe size ofthe Recreation Center at 69 ,000 sq. ft. The costs below represent operation and maintenance for the building as it exists currently. Part Time Building Supervision Janitorial -Contractual Utilities -Gas , Electric, Water including Water for Park Miscellaneous Repairs and Maintenance Operating Supplies $ 17 ,472 24 ,000 38 ,000 25 ,000 20,000 Sub Total: $124,472 Furniture, Fixtures and Equipment 50,000 Total: $174,242 ~ Program revenue will offset expenditures based on final recreational programming and frequency of building rentals. o As an example, the Active Adult Center rentals average $25 ,000 per year and the Anderson Building rentals average $14 ,000 per year. ~ Additional building maintenance staffing, which is not included above, will be required regardless of final square footage of school building (partial demolition is an option). Attachment 4 Mayor and City Council January 9 , 2012 Page2 2) Park Maintenance Martensen school site is approximately 4 acres in size. Annual Maintenance Costs Demolition Costs (see attached building diagram): Building "A " Building "C " Building "E" Sub Total: Asbestos Removal -not to exceed estimate Total: $35,000 $29,070 29,070 15,810 $73 ,950 $ 10,000 $83,950 Costs include demolition of existing buildings only, removal of slab-on-grade floor, footings , haul off debris , and backfill of demolition areas w /clean dirt/rough grading. JM/dr 2 Status Report on the 2010 Comprehensive Annual Financial Report (CAFR) January 9, 2012 Page 2 approved in the supplemental budget appropriation exceeded the budget resources available. We recommend that future resolutions document whether unexpected revenues or fund balance became available for the additional expenditures, or whether the original fund balance will be used." This issue has occurred in instances when the City receives grant .funding. In future Council Action Forms staff will include an adjusted revenue amount when accepting grant funding in order for the amended budget to reflect the increased revenue. 4. Certificates of Deposit-"The City has purchased certificates of deposit at banks not certified under the Public Deposit Protection Act (PDP A). In addition, several certificates of deposit were purchased by brokers rather than directly from banks. In this instance, it is difficult to know if the certificates of deposit are covered by FDIC insurance. We recommend that the City follow State statutes, which only allow deposits in banks certified under PDP A. In addition, the City should be available to verify its deposits directly with each bank to ensure that FDIC insurance is in place." See the attached memorandum from City Treasurer. 5. New Accounting Standards-"For the year ended December 31, 2011, the City will be required to adopt new accounting standards that require additional classifications of fund balance to be reported in the financial statements. These classifications include the City Council's commitments established by formal action. In addition, reporting special revenue funds will not be allowed unless their revenues derive from restricted or committed sources . This may require the City to discontinue using certain funds, such as the Municipal Court, Richards Hart Estate, and Equipment Replacement Funds." On October 10, 2011, City Council approved the closure of the Richards Hart Estate Fund effective December 31 , 2011. Staff has reclassified the Equipment Replacement Fund as a Capital Equipment Replacement Fund for compliance with GASB 54. We have confirmed with Wendy Swanhorst that no additional action is necessary on the Municipal Court Fund in order to comply with GASB 54. Please let me know if you have any questions. lhmg Attachments 1. Memorandum from City Treasurer ~~·., ... r City of ... ~Wheat&__dge ~0FACEOFTHECITYTR~RER Memorandum TO: Mayor and City Council THROUGH: Patrick Goff, City Manager Heather Geyer, Administrative Services Director FROM: Larry Schulz, City Treasurer DATE: December 5, 2011 SUBJECT: Follow-up on Audit Management Letter Findings I am responding to two paragraphs on page 3 of the subject letter. I have included the language of the letter, followed by my response:- 1. Investment Custodial Risk: Auditor's Letter The City continues to utilize various brokers to purchase and hold U.S. Agency securities. We have discussed this arrangement with management. However, we are not aware that the City has made a final decision about moving these investments to a third party trustee. Response The City has recently consolidated its safekeeping function for all brokered investments into one account with our primary banker, FirstBank. Prior to this change, each broker designated a safekeeping function with an appropriate financial institution. We exchange no funds with any broker. We continue to work with a small number of brokers and do not anticipate limiting investment activity to a single broker. We do not authorize brokers to independently place funds when a call occurs, freeing funds for reinvestment. No Additional Follow-up is necessary on this item. 2. Certificates ofDeposit: Auditor's Letter The City has purchased certificates of deposit at banks not certified under the Public Deposit Protection Act (PDP A). In addition, several certificates of deposit were purchased by brokers rather than directly from the banks. In this instance, it is difficult to know if the certificates of deposit are covered by FDIC insurance. Attachment 1