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HomeMy WebLinkAbout2006 03-13 EDAP EDA MEETING City of Brooklyn Center March 13, 2006 AGENDA 1. Call to Order —The EDA requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including EDA (Economic Development Authority), is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2. Roll Call 3. Approval of Agenda and Consent Agenda —The following items are considered to be routine by the Economic Development Authority (EDA) and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the eonsent agenda and considered at the end of Commission Consideration Items. a. Approval of Minutes —Commissioners not present at meetings will be recorded as abstaining from the vote on the minutes. 1. February 27, 2006 Regular Session 4. Commission Consideration Items a. Resolution Transferring $300,000 into the Earle Brown Heritage Center Capital Fund •Requested Commission Action: -Motion to adopt resolution. 5. Adjournment EDA, Agenda Item No. 3a MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION FEBRUARY 27, 2p06 CITY HALL COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session and was cailed to order at 9:45 p.m. by President Myrna Kragness. 2. ROLL CALL President Myrna Kragness, Commissioners Kathleen Carmody, Kay Lasman, Diane Niesen, and Mary 0'Connor. Also present: Executive Director Michael McCauley, Assistant City Manager/Director of Operations Curt Boganey, City Attorney Charlie LeFevere, and Deputy City Clerk Camille Yungerberg. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Carmody moved and Commissioner Niesen seconded to approve the agenda and consent agenda and the following item was approved: 3a. APPROVAL OF MINUTES 1. Janua 9, 2006 Re ular Session g Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO 2006-02 SELECTING THE NO WAIVER OPTION FOR STATUTORY TORT LIABILITY Executive Director Michael McCauley stated the resolution is to verify the selection of the No Waiver Option for the Statutory Tort Liability. Commissioner Lasman moved and Commissioner Carmody seconded the adoption of RESOLUTION NO. 2006-02 Selecting the No Waiver Option for Statutory Tort Liability. 02/27/06 1 DRAFT 4b. RESOLUTION NO. 2006-03 DIRECTING SOLICITATION OF DEVELOPMENT PROPOSALS FOR THE FORMER NORTHBROOK/HMONG AMERICAN SHOPPING CENTER SITE Mr. McCauley stated the resolution would take the recommendation of the task force and solicit recommendations of the development proposals for the former Northbrook/Hmong American Shopping Center. Commissioner O'Connor stated she does not like to use Tax Increment Financing funds and the land should be sold. Commissioner Lasman moved and Commissioner Carmody seconded the adoption of RESOLUTION NO. 2006-03 Directing Solicitation of Development Proposals for the Former Northbrook/Hmong American Shopping Center Site. Commissioner O'Connor voted against the same. Motion passed. 5. ADJOURNMENT Commissioner Carmody moved and Commissioner Lasman seconded adjournment of the meeting at 9:53 p.m. Motion passed unanimously. President 02/27/06 2 DRAFT EDA Agenda Itern No. 4a MEMO DATE March 3 2006 TO: Michael McCauley, EDA Executive Director FROM: Curt Boganey, A� City Manager/Director of Operations SUBJECT: Resolution transferring excess EBHC operating funds to EBHC Capital Fund RECOMMENDATION I recommend adoption of the attached resolution authorizing the transfer of $300,000 from the Earle Brown Heritage Center (EBHC) operating fund to the EBHC Capital Fund for the purpose of financing the capital improvements outlined in 2005 EBHC Capital Projects Budget and for future capital needs as described in the 2005-2025 Capital Improvernent Plan. BACKGROUND In December of 2002 the City Council established the Earle Brown Heritage Center Capital Improvement Fund recognizing that the Center would need to fund ongoing capital needs i.e. roof replacements, new carpeting, major mechanical systems, sound system replacements, and major kitchen appliances. It was determined that the best way to pay for these major capital costs in the absence of borrowing was to establish a fund that would be primarily capitalized from year-end cash surpluses generated from the operations of the Center. The last transfer into the Capital Fund of $67,000 was made in June 2005. After improvements made in 2005, including fiber equipment, parking lot improvements and parking lot improvements, and a replacement dishwasher (funded by FLIK International) the remaining balance in the EBHC Capital fund is 2,511.00 Since 2003 the City Manager has used a policy formula to determine the minimum operating funds needed to meet all anticipated cash flow and emergency cash needs for the EBHC. In accordance with this policy the minimum required cash on hand at December 31, 2005 was 739,099. The actual funds on hand were $1,055,065 leaving an excess balance available for transfer in the operating fund of $315,966. In order to meet current capital expenditure needs it is recommended that $300,000 of this excess balance be transferred to the Capital Fund for current and future capital needs. I SUMMARY The City Council has established a Capital Fund for the Earle Brown Heritage Center to provide for the ongoing capital needs of the center. The current balance in this fund is approximately $2,511. The Center has current capital needs estimated at 140,000 that require funding at this time. It has been determined that the current cash balance in the operating fund as of DecemUer I 31, 2005, in the amount of 1,055,065 exceeds the minimum cash re uired for o eratin q P g cash flow and emergency purposes and it would be prudent and reasonable to use some portion of these excess fund for capital needs as recommended. To fund the needed improvements it is recommended that excess cash in the operating fund in the amount of 300,000 be transferred to the Capital Fund. Please let rne know if you have questions. I i G:�Asst City Mgr�RESOLiJTIONS�Ivlemorandum 2006 cap fund transfer mem.doc Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION TRANSFERRIl�tG $300,000 INTO THE EARLE BROWN HERITAGE CENTER CAPITAL FUND WHEREAS, a capital fund for the Earle Brown Heritage Center (EBHC) has been established ta provide an ongoing funding mechanism for capital itezns; and WHEREAS, the current unencumbered balance within this fund is $2,511; and WHEREAS, the Council has approved the 2006 Capital Plan for the EBHC has identified current year capital needs estimated to cost $140,000; and WHEREAS, a cash analysis for the EBHC operation for the fiscal year ending December 31, 2005, identifies a cash surplus within a conservative range that would permit the transfer of $300,000 to the EBHC Capital Fund; and WHEREAS, this transfer is required to meet the identified current and future capital needs. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center that it approves the 2006 Capital Improvement Program authorizing the Executive Director to implement said program and authorizes the transfer of $300,000 from the EBHC Operating Fund to the EBHC Capital Project Fund effective the date of adoption. March 13, 2006 Date President The motion for the adoption of the foregoing resolution was duly seconded by commissioner and upon vote being taken thereon, the following voted in favor thereo£ and the following voted against the same: whereupon said resolution was declared duly passed and adopted. Cit�y of BrookC m Center 2006 Budget FUND: Earle Brown Heritage Center 40800 DEPTfACTIVITY/PROJECT: Capital Projects This fund provides for the replacement of fully depreciated or obsolete capital items and new capital purchases in accordance with Five Year Capital Program CAPITAL OUTLAY- Convention Center 6520 Buildings and Facilities Garden City Ballroom Carpet Replacement Qty: 1 Unit Cost: $30,000 Less Trade-in: -0- Total Cost: $30,000 Administrative Office Carpet Replacement Qty: 1 Unit Cost: $15,000 Less Trade-in: -0- Total Cost: $15,000 Harvest/Lobby/Hall Carpet Replacement Qty: 1 Unit Cost: $40,000 Less Trade-in: -0- Total Cost: $40,000 6540 Equipment and Machinery Repair and Repaint Water Tower Qty: 1 Unit Cost: $15,000 Less Trade-in: -0- Total Cost: $15,000 CAPITAL OUTLAY- Caterin� 6540 Equipment and Machinery Double Combi Oven Addition Qty: 1 Unit Cost: $40,000 Less Trade-in: -0- Total Cost: $40,000 EARLE BR OWN HERITAGE CENTER 2005-2025 CAPITAL IMPROVEMENT PLAN as of October 5 2005 (In date order with yearly totalsj Acquisition or Acquisition Acquisition Estimated Replacement Estimated Capital Item Year Cost Useful Life Year Cost I I I I I I j Main kitchen dishwasher 1990► 30,000 I 201 20051 75,000 I InstaU-fiber throuqhout facility I New I I 20+1 20051 23,000 I Parking lot mill and overiay I 19891 101 20051 118;000 1$ 216,000 I I I I I I I I I I I Replace Garden City carpet t 19991 I 61 20061 30,000 Add doubie combi oven INew I I 151 20061 40,000 I I Replace Admin Office carpet I 19891 I 101 2006I 15,000 Replace HarvesULobby/Hall carpet I 19991 I 71 2006� 40,000 Repair/repaint water tower I 19901 I 15-201 2006� 15,000 140,000 I I I I I CH Wall Panels 19891 72,000 I 151 2007� 60,000 Upgrade fire alarms (visual alert) �New I I I 20071 30,000 I Replace staginp I 19901 19,925 151 20071 38,000 Replace one boiler I 19891 14� 20071 15,000 Document Imaging System INew I I 2007� 12,000 Sealcoat both East parking lots I 19991 I 81 2007► 15,000 Captain's/Estate/Loft Carpet I 20001 15,000 I 71 20071 18,000 I$ 188,000 I I I I I I Rotunda roof CH metalwork I 19891 201 20081 45,000 I Phone System I 19981 32,000 I 101 20081 40,000 I Compactor I 19901 11,375 I 20I 20081 25,000 Main large marquee+electronics 19891 I 191 2008► 50,000 160,000 I I I I I I Replace chitler I 19891 I 20I 20091 140,000 Tearoff/ReRlace Stable Roof I 19891 I 201 20091 26,000 I Repiace two boilers I 19891 I 20� 2009� 15,000 181,000 Five Year Subtofal ,I I I I I$ 885,000 I I I I I Hippodrome roof (epdm) I 19901 91,575 I 20-301 2010� 100,000 I Energy Management System (HVAC) I 19991 15,500 I 101 20101 75,000 Replace combi oven I 19901 14,165 I 151 20101 40,000 Replace roof Blacksmith shop roof I 19901 I 20 2010 20,000 I Replace roofs I 19901 I 201 20101 24,000 I$ 259,000 I I I I I Carriage Hail carpet I 20051 50,000 I 6► 2011 50,000 I CH divider wall (repair/replace) I 19891 201 2011 35,000 Tack/Morqan/Hall carpet 20041 15,000 7► 2011 17,000 Replace roof I 19901 I 201 2011 I$ 10,000 I$ 112,000 I I I I I I Replace HarvesULobby/Hall carpet I 20061 20,000 I 71 2013� 40,000 40,000 I i I I I Add kitchen walk-in cooler I 19901 3,664 I 1 2014� 20,000 Replace Harvest divider walis I 19991 I 151 2014� 20,OQ0 40,000 Five Year Subtotal I I" I I' ,.1 451,000 I I I I I I Parkinq lot mill and overlay (East lots) I 19991 I 161 20151 70,000 I Repiace Garden City carpet I 20051 30,000 I 101 20151 30,000 100,000 Acquisition or Acquisition Acquisition Estimated Repiacement Estimated Capital Item Year Cost Useful Life Year Cost J f I I I Replace carpet I 20061 15,000 I 101 20161 15,000 15,000 I i I I I I Carriaqe Hall carpet t 2011 I$ 50,000 I 61 20171 5�,000 Captain's/Estate/Loft Carpet I 20071 18,000 101 2017� 18,000 68,000 1 I I I I I Tack/Morqan/Hall carpet I 2011 I$ 15,000 I 71 2018► 15,000 I$ 15,000 I I I I I I j Replace HarvesULobby/Hail carpet* I 20131 40,000 I 61 20191 40,000 I Replace carpet I 1999I I 101 20191 15,000 55,000 Five Year'Subtotal J I' i I I ``:I S 253,000" I I I I I I Main kitchen dishwasher I 20051 75,000 I 151 2020� 75,000 Man Lift I 20051 15,000 I 151 20201 15,000 I$ 90,000 I I I I i I Parkinq lot mill and overlay I 20051 70,000 I 16I 2021 70,000 Sealcoat oriqinai parkinq lot 20131 15,000 I 01 2021 15,000 I$ 85,000 I I I I I I I Replace one boiler 2007� 15,000 I 15� 2022� 15,000 15,000 I I I I I Carriage Hall carpet I 2017� 50,000 I 6� 2023� 50,000 Sealcoat both East parking lots I 20151 15,000 I 81 20231 15,000 l$ 65,000 Five Year-Subtotal I' i" I 255,000 I I I I I I Repiace HarvesULobby/Hall carpet' 20191 40,000 I 6I 20251 40,000 Replace Garden City carpet 20151 30,000 I 101 20251 30,000 I TackfMorgan/Hall carpet I 20181 15,000 71 2025� 15,000 85,000 I I I I I f Captain's/Estate/Loft Carpet I 2017I 18,000 I 101 20271 18,000 I S 18,000 Five Year Subfotal 1 I i' i i 103,000 I I I I I t Replace one boiler I 20181 15,000 I 151 20331 15,000 I$ 15,000 "Assumes higher traffic resulting in earlier wear due to hotel link to facility. *'Hardware/Software of system as total investment is $12,000. Hardware upgrades may be needed every five years.Yearly maintenance contract covers software upgrade. Both would be less than capital threshhold. This report encompasses all anticipated capital expenditures (items exceeding $10,000) from 2005-2025. All dollar amounts are shown in 2005 dollars. See site pian attached to identify buildings. In instances where an acquisition cost is not included, it is assumed to be rolled into total construction cost. Yeliow highlight indicates completed project. H:Admin/Reports/20YearCapitaiDateOrder EBHC TRANSFERS USING PROPOSED EBHC OPERATING CASH RESERVE POLICY At December 31, 2002: 12-month average event deposits 189,858 12-month average cash disbursements 302,458 x 150°/a 453,687 Minimum cash balance 643,545 Cash balance before transfer 766,529 Amount available for transfer 122,984 Actual transfer at 12-31-02 100,000 At December 31, 2003 12-month average event deposits 198,177 12-month average cash disbursements 284,464 x 150% 426,696 Minimum cash balance 624,873 Cash balance at 12-31-03 855,429 Amount available for transfer 230,556 Actual transfer at 02/09/04 200,000 At December 31, 2004 12-month average event deposits 226,779 12-month average cash disbursements 334,818 x 150% 502,227 Minimum cash balance 729,006 Cash balance at 12/31/04 796,732 Amount available for transfer 67,726 At December 31, 2005 12-month average event deposits 252,858 12-month average cash disbursements 324,161 x 150% 486,241 Minimum cash balance 739,099 Cash balance at 12/31/05 1,055,065 Amount available for transfer 315,966