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HomeMy WebLinkAbout1998 11-23 CCP Regular Session CITY COUNCIL MEETING Public Copy City of Brooklyn Center November 23, 1998 AGENDA 1. Informal Open Forum With City Council - 6:45 p.m. - provides an opportunity for the public to address the Council on items which are not on the agenda. Open Forum will be limited to 15 minutes, it is not televised, and it may not be used to make personal attacks, to air personality grievances, to make political endorsements, or for political campaign purposes. Council Members will not enter into a dialogue with citizens. Questions from the Council will be for clarification only. Open Forum will not be used as a time for problem solving or reacting to the comments made but, rather, for hearing the citizen for informational purposes only. 2. Invocation - 7 p.m. -Emee McArthur 3. Call to Order Regular Business Meeting 4. Roll Call 5. Council Report 6. Approval of Agenda and Consent Agenda -The following items are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember so requests, in which event the item will be removed from the consent agenda and considered at the end of Council Consideration Items. a. Approval of Minutes - Councilmembers not present at meetings will be recorded as abstaining from the vote on the minutes. 1. Special Work Session - November 16, 1998 Regular Session - November 9, 1998 b. Licenses C. Application for Exemption from Lawful Gambling License for Southern Anoka County Chamber of Commerce d. Application to Conduct Excluded Bingo at Orchard Lane Elementary School e. Resolution Appointing Auditors for the Year Ended December 31, 1998 CITY COUNCIL AGENDA -2- November 23, 1998 7. Planning Commission Items a. Planning Commission Application No. 98021 Submitted by William R. Stoner, Stoner and Associates. Request for Rezoning from C -2 (Commerce) to C -1 (Service /Office) for the property located at 5001 Drew Avenue North. The Planning Commission recommended approval of this application at its November 12, 1998, meeting. -Requested Council Action: - Motion to approve Resolution Regarding the Disposition of Planning Commission Application No. 98021 Submitted by William R. Stoner. - Motion to introduce first reading Ordinance Amending Chapter 35 of the City Ordinances Regarding the Zoning Classification of Certain Land (5001 Drew Avenue North), and set Public Hearing for December 14, 1998. b. Planning Commission Application No. 98023 Submitted by Roman Mueller, Speedway SuperAmerica LLC. Request for Preliminary Plat Approval to transfer property from the newly created Regal Road Addition to the Super America site. The • Planning Commission recommended approval of this application at its November 12, 1998, meeting. - Requested Council Action: - Motion to approve Planning Commission Application No. 98023 for preliminary plat approval subject to the conditions recommended by the Planning Commission. - Motion to approve Resolution Approving Final Plat -- REGAL ROAD DEVELOPMENT SECOND ADDITION C. Planning Commission Application No. 98024 Submitted by Roman Mueller, Speedway SuperAmerica LLC. Request for Site and Building Plan and Special Use Permit approval to construct a 24' x 36' freestanding car wash addition to the existing Super America site, 6545 West River Road. The Planning Commission recommended approval of this application at its November 12, 1998, meeting. - Requested Council Action: - Motion to approve Planning Commission Application No. 98024 for special use permit to conduct a freestanding car wash addition subject to the conditions recommended by the Planning Commission. CITY COUNCIL AGENDA -3- November 23 1998 9 8 • d. Planning Commission Application No. 98025 (Cub Foods) Submitted by Brookdale Corner LLC. Request for Preliminary Plat approval to combine three parcels of land located at the southwest corner of Xerxes Avenue and County Road 10 into a single parcel. The Planning Commission recommended approval of this application at its November 12, 1998, meeting. - Requested Council Action: - Motion to approve Planning Commission Application No. 98025 subject to the final plat conditions recommended by the Planning Commission. - Motion to approve Resolution Approving Final Plat -- BROOKDALE CORNER ADDITION e. Planning Commission Application No. 98026 Submitted by CSM Corporation. Request for Site and Building Plan approval for a 6,000 sq. ft. office building with a drive u facility on the p roper t y located on Northwa Drive just north of Count P Y P P Y Y �J Y Road 10. The Planning Commission recommended approval of this application at its • November 12, 1998, meeting. - Requested Council Action: - Motion to approve Planning Commission Application No. 98026 subject to the conditions recommended by the Planning Commission. 8. Council Consideration Items a. Resolution Awarding the Sale of $1,085,000 General Obligation Improvement Bonds, Series 1998A; Fixing their Form and Specifications; Directing their Execution and Delive • and Providing idin for their Delivery; g Payment Y - Requested Council Action: - Motion to adopt resolution. Resolution Awarding he Sale of $1,585,000 General Obligation State Aid Road g g Refunding Bonds, Series 199813; Fixing their Form and Specifications; Directing their Execution and Delivery; and Providing for their Payment - Requested Council Action: - Motion to adopt resolution. b. Resolution Expressing Recognition and Appreciation for the Public Service of Organizations Participating in Brooklyn Center's Adopt -A -Park, Adopt -A- Trail, and Adopt -A- Street Programs e CITY COUNCIL AGENDA 4- November 23, 1998 • -Requested Council Action: - Motion to adopt resolution. C. An Ordinance Amending Chapter 12 of the City Ordinances Implementing a Time of Sale Housing Inspection, Requiring an Inspection, Disclosure of Consumer Information Concerning the Condition of a Dwelling Prior to its Sale, and Correction of Certain Hazardous Conditions - Requested Council Action: -Report on ordinance and Council direction. d. Resolution Awarding a Contract for Professional Services, Palmer Lake Basin Water Resources Study - Requested Council Action: - Motion to adopt resolution. e. Report on Code Enforcement - Requested Council Action: -Report and discussion. f. 1999 Public Utilities Rate Study - Resolution Adopting the 1999 Water Utility Rate Schedule - Resolution Adopting the 1999 Sanitary Sewer Utility Rate Schedule - Resolution Adopting the 1999 Storm Drainage Utility Rate Schedule - Resolution Adopting the 1999 Recycling Rates - Resolution Adopting the 1999 Water and Sanitary Sewer Hookup Rates - Requested Council Action: - Motion to adopt resolutions. g. Resolution Establishing Assessment Rates for Street Improvement Projects in Residential Areas in 1999 - Requested Council Action: - Motion to adopt resolution. h. Report on Humboldt Avenue Substation - Requested Council Action: - Discussion and direction on family service center. CITY COUNCIL AGENDA -5- November 23, 1998 i. Report on Accepting Bids and Awarding Contracts for Earle Brown Heritage Center Building Additions and Renovations - Requested Council Action: - Motion to accept bids and award contracts. j. Staff Report Regarding: Water Works Facility Study - Requested Council Action: -City Manager will provide verbal update. k. Resolution Accepting Bid, and Awarding Contracts for New West Fire Station and East Fire Station Remodeling, Improvement Project No. 1998 -10 and 1998 -11 - Requested Council Action: - Motion to adopt resolution. 9. Adjournment } Fyn Histo . go o l Br �r Celebrating ookl n Townshi "Looking Back for the Future" 2000-1858 j - %I 1Is Society "Come Home to the Park" PO Box 29345 Brooklyn Center, MN 55429 fl Brooklyn Park " Discover the Center HERITAGE BOOK COMMITTEE Brooklyn Center (as of 3/18/98) Coordinators: Ernee McArthur 560 -0191 Roxanna Benjamin 560 -1939 Committee Members: u Mary Blesi 425 -2547 $Voo Sandy Cich 560 -9332 Barbara Erickson 561 -3206 O Ja Hallberg 533 -8467 „ Ja g David Johnson 533 -2344 Marion Klohs 424 -5590 Joseph Lampe 560 -0191 Barbara Sexton 537 -2118 The Brooklyn Historical Society Charlotte Tommerdahl 424 -2274 Mary Ellen Vetter, Pres. 561 -1761 LEAVE YOUR THUMBPRINT IN TIME — IF YOU DON'T, WHO WILL? 100 years from today, what will people know about you? Probably little, unless you write it down! And unless it's preserved in a book, your writing may be lost! Here's the solution -- write down your family's story and send it to us. The Brooklyn Historical Society, serving Brooklyn Center and Brooklyn Park, is sponsoring, compiling and publishing a Heritage Book on Brooklyn Township, 1819 -2001. We visualize the book to be approximately 600 pages with a laminated cover. The book will consist of Brooklyn's families, historical overview, prehistory and early European exploration, pioneer businesses, population and development, government, churches, historic houses, Century Farms, schools, organizations, and much more. If you are presently living in, or have previously lived in Brooklyn Center or Brooklyn Park, we NEED and WANT your family biography. The Heritage Book is for everyone and will be complete only to the extent that we all participate. In WRITING YOUR FAMILY, BUSINESS, CHURCH, SCHOOL, OR ORGANIZATION HISTORY, write the story as you would tell it in reminiscing, and then it will be interesting reading for others. The history should be a maximum of 450 -500 words. Please submit your story double - spaced and typed, if possible. Sign your name to your history and double check the wording. (Four samples of family history are available to use as a guide in writing yours.) Send one PHOTOGRAPH, current or historic (no Polaroid prints). Indicate the date, names of people and desired caption for your picture. Send only reprints of any extremely valuable or irreplaceable photographs. Your pictures. will be returned to you after the book is completed. There will be no fee for having your history published in this book, and no purchase is required. Closer to the time the book is published you will have an opportunity to order /purchase books. The histories and pictures should be submitted as soon as possible but no later than January 15, 1999. You will be asked to give permission for your story to be edited (not changed) for reasons of space and/or repetition. Send your material to the Brooklyn Historical Society at the address above. If you have any questions, please contact any of the Heritage Book committee members. l Celebrating Brooklyn Township g Y P "Looking Back for the Future" 2000-1858 "Discover the Center" "Come Home to the Park" Brooklyn Center, Minnesota Brooklyn Park, Minnesota RESEARCH TOPICS Brooklyn Township Plat Map Acknowledgments Introduction Brooklyn Township is Named Historical Overview of Brooklyn Township Prehistory and Early European Exploration Pioneer Businesses - Logging, Ice Harvesting, Threshing, Potato & Garden Farming Early Settlement and Growth as a Township Population Government Brooklyn Center - "Discover the Center" Brooklyn Park - "Come Home to the Park" Churches Cemeteries Trails and Current Highways Indian Trail, then Osseo Road, now Brooklyn Boulevard Historic Houses Century Farms School Districts - Osseo 279, Brooklyn Center 286, Anoka- Hennepin 11, Robbinsdale 281 Earle Brown Farm Brown Field - First Minnesota Commercial Airport State Highway Patrol Founded Brooklyn Park Historical Farm Organizations Newspapers Colleges Early Businesses Brookdale Shopping Center VFW - World War I American Legion - World War II, Korea and Vietnam Conflict Shingle Creek, Palmer Lake, Twin Lakes, Mississippi River Edinburgh Development Parks, Recreation, Golf Courses Edinburgh USA Brooklyn Center Hall of Fame Brooklyn Park Hall of Fame Brooklyn's Families Bibliography Index To Be Published by the Brooklyn Historical Society in the Year 2000 Deadline for Submissions: January, 1999 ITEMS TO CONSIDER IN WRITING YOUR FAMILY HISTORY 1. When and why your family came to the Brooklyn's: A. How old were you? B. Include as many generations as you like. C. Your childhood, unusual happenings, factors that influenced your lifestyle. D. School days. 2. Activities: A. Jobs: What did your ancestors do for a living? 'What is your present occupation? B. Sports. C. Courtship and marriage. 3. Avocations: A. What you do for recreation. B. Civic and political activities. C. Church: activities, influence. D. Hobbies. E. Travels. 4. Remembrance: A. Special Celebrations. B. Holidays, birthdays, etc. C. Ancestors: impressions of those you knew and heard about. D. Hardships. E. Humorous incidents, frightening experiences. 5. Writing tips: A. Tell what is interesting and meaningful to you. B. You will not be graded. This is not a test! C. Any story that does not embarrass or hurt someone is acceptable. D. If your family history is not included, the history of Brooklyn Township will not be complete. E. DO IT NOW! EXAZFIE . . . . 1:50 -500 words, one pi.c Lure: To" &ioumKuefierfoulymwon = Merchandiser for American Greeting Card. July 199 Joanne, a super bargain shopper, also has special skills in haircutting, wallpapering, gardening and water color painting, _ oil & g, in addition to having P excellent listening skills. As of this writing in 1998 Joe , his wife Pam and their five children r live in Ferron Utah; Steve, his wife Jane, and their two children live in Plymouth, MN; Kathy, her husband Jim, and their two children live in } _ _ Germantown, WI; Ken, his wife Karen, and daughter live in Trabuco Canyon, CA; Carol and Buenos Aires Emilio, in B , i r husband E mi io , he Argentina. The Kuefler family have all been active in church, Pictured left to right: Seated in front row are Sierra, sports and camping since movin to school so g P P g Danielle, Douglas, and Jonathon holding Jesse. Seated Brooklyn Center in 1963. Tony, who has been a in second row are Kathryn, Joseph, Jessica and articularil active volunteer in his church and Matthew. Standing in back row is Joanne, Kenneth P Y holding Victoria, Tony, Karen, Carol, Jim, Kathy, community, also has been a leader in many of the Steve, Jane, Joe and Pam. Inset is Emilio. organizations he has involved himself in. He has served as President of the Jaycees; the first St. Kuefle y History r Famil Histo Alphonsus Church Council president; St. Alphonsus Fun Fair Co- chair; Knights of Tony came Committee Chair; Brooklyn Center &Joanne Kuefler both am efromWa de n a, Minnesota farm families. They married in June Republicans; Campaign Manager for two State 1957, when Tony was a student at Dakota Legislator campaigns; Treasurer and Director of Business College (DBC) in Fargo, ND. Prior to Brooklyn Historical Society, Citizens for Better his enrollment at DB C Tony served in the US Government and the Brooklyn Center Taxpayers on Army during the Korean Conflict working as a Association; North Side Life Care Center Board; Security and Legal Clerk, at Fort Richardson, Earle Brown Days Festival Board; and nine year Alaska. Brooklyn Center City Council member (73 -81). Tony was also active in his profession, serving as Following graduation from DBC in 1958, Tony President of the Twin Cities Association of began his 35 year career with Northern States Systems Management. Power (NSP), as an Accountant in Fargo, ND. In 1963, Tony transferred to the Minneapolis Since retiring in 1993, Tony and Joanne travel Corporate Headquarters, where he spent the next (mostly in their motorhome ) about 3 months each twenty -five years, working as a Computer Year to see their children and grandchildren, Programmer, Systems Analyst, Supervisor, friends sights gh is in all 50 states and beyond. Manager and General Manager in Computer When not traveling or enjoying his hobbies of m Ton continues with a heavy fishing and golfing, Systems. He spent his last five years as NSP g g g, y Project Manager, in Eau Claire, Wisconsin. schedule of volunteer activities — he says it helps keep him young and out of trouble. Joanne and Tony raised five children. Joanne was her, until five stay-at-home mot all fi a dedicated, stay a , children finished high school, then she became a His P.O. Bog 29345 Brooklyn Center, MN 55429 -0345 Society On May 16, 1940, my father, John F. Huberty of Lakeville, MN, married my mother, Loretta A. Sakry of St. Cloud, MN. They were married in the Basilica of St. Mary's Church in Minneapolis, Minnesota. I am their only child, Sandra J. Huberty Cich, born Mary 26, 1943 at Eitel Hospital in Minneapolis, MN. Shortly after my birth my father was sent overseas to serve in WWII in the South Pacific with the Seabees. After his return to Minneapolis in 1945, we continued to live on the 3rd floor of the Delano Apartments at 11 Spruce Place, Minneapolis, MN. The apartment was located two blocks from Loring Park and three blocks from the Basilica which is where I attended school through the 6th grade. After returning from the War my father went to work for Northern Ordinance Plant (aka "The Pump ") in Fridley, MN where he worked for the next 37 years, retiring in 1982. He passed away in 1985 at the age of 62. In May 1955 we moved to a brand new pin&: 3 bedroom Mary Anderson rambler at 5347 Morgan Avenue North in Brooklyn Center, MN. There were no trees, no grass and dirt roads. The houses were built on farm land and for several years we had asparagus growing up through our grass. My parents joined Our Lady of Victory Churcr. in North Minneapolis and I attended school there for 7th and 8th grades. Since their was not a highschool in Brooklyn Center at that time, students in Brooklyn Center were bussed to North High School in Minneapolis. We were known there as the "kids from the country." During highschool I worked part-time at the Bridgeman fountain located inside the Merwin Drugstore located in Northbrook Plaza (currently housing the laundromat). .On October 23, 1965, I married Ronald J. Cich of St. Paul, MN. We were married at Our Lady of Victory Church and moved into oqr first home on Rice Street and Larpenteur Avenue in St. Paul, MN. On December 14, 1966, Peter, our first child was born. He was followed by Paul, Mary, Michael, and Timothyy. Our family moved six times over the years and in September 1986, we moved to my childhood home at 5347 Morgan Avenue North. We added 3 more bedrooms, another bath and a Family Room to the home. All the children have left home - Peter is a career Air Force personnel and lives with wife Anna and children Alex and Rita at Hill AFB in Utah. Paul and wife Andrea live with three children, Elaine, Kristofer, and Jordan in Woodbury, MN. Mary has an apartment near make Calhoun in Minneapolis. Michael attends school at St. Cloud State University. Timothy recently joined the Air Force and is in training in Texas. Ron retired in February 1998 after 33 years with 3M in St. Paul. We continue to live in the house at 5347 Morgan Avenue North with my mother. NORBERT AND IAR"NE (EPSKY) BERG ` THE CITY OF HOPE—BROOKLYN CENTER on Mar 6. 1925, ai Holdinord. MN, Loy rainejoined Ra yrmond, Helen std af Edward in th I b We called it the CITY OF HOPE in 1957 when my William and Mary Epsky family. Several yeah Later Rhes completed their family of five. husband Don and I moved to Brooklyn Center. We had lived for William (Bill was born January 24. 1817 at Connelisville, PA. Hu were Joseph and five years at Olson Highway and Humboldt Ave. N, where we Emma (Koloavan), They were bo born H U learned the richness of the Jewish faith from our landlord Sarah in Budapest. u& I • 1 17 901 at t.ckron. Mary was b bornorn j anua R.ozman. We had been married at Camp Rucker, Alabama, and PA. Her parents, Michael rent both born in CateAosWva _Mary Dorosh. lived in Alabama during the Korean Conflict. We were looking /.� north to buy because we were northern Minnesota people, having been raised on the White Earth Indian Reservation at Q Callaway, Minnesota. Don was a proud Native American of ) p 4 about 1/3 Ojibwe descent. Emee is of the German clan. 1 0 � Don liked the construction of the $16,400 Marvin Anderson house we purchased on 55th Avenue by assuming a �� �T ;: { G1 mortgage. We couldn't have qualified for financing on our. own; they only considered the husband's earnings back then. Fmee didn't remember the house, but remembered the twin babies of the owners. Later, in the 1960's, Don and Emee were to adopt two children, Neil and Amy. Neil married Maria from Honduras, Amy married Paul b a rrbert an r orrainea(Err)Ber P and pal Sass from St. Paul. They are raising their families in Cottage Grove and Oakdale, Minnesota. There have been 8 grandchil- T he Epsky family later moved to Eagle Valley dren. In 1988, after a six -year, two -month silent battle with ownship. Lorraine went to Dist. 88 and gradu ated from Clarissa High School in 1943. cancer, Don died. But not before building his VISION, a tribute Lorraine first job was a proofreader at Han Mart to his Native American people, a half -log cabin on Leech Lake Tom. She graduated f om Holllyw Beau where, he, his family and friends fished for 35 years, the 35 School in Minneapolis and worked as a beauti- cian in Minneapolis, Holdingford. Chicago and dears he was employed by Minnegasco. Long Prairie. she then took a course in airline , as reservations and ticketing at Kansas City MO. Emee continues to be a volunteer in the communit She worked as a traffic control agent for North- she has been for 40 years, often working behind the scenes on west Airlines in Minneapolis for six years. On January 24, 1959, Lorraine married Nor - other people's projects. She identifies herself as an Ambassador ben Berg at 5t. Mary's Orthodox Cathedral in for Jesus Christ, following conversion /reborn -a airs ex C ri - Minneapolis. Norbert is the son of Elmer born g g p in Brooklyn Park in 1885 (deceased) and Francis ence in 1973 driving to St. Paul while serving in the Minnesota Dahtheimer, born in Anoka in 1890 (deceased). Their family: Clifford was born in 1911 (de- Legislature. /� � ceased), Anthony 1913, Lester 1915, (deceased), In June, 1995, Emee found a new life with husband ] in vin 19t7, Vernon t920, Norbert 1923, lone 5, Richard 1928, (deceased) and Arnold Joseph Lampe, who grew up in St. Louis Park. Joe also had 0. lived in Winona, Rochester, St. Anthony, San Antonio (TX) orbert was born at Rogers, MN on Feb. 20. graduated from Elk River High School in Riverside (CA), Washington (DC) and finally Shoreview. They 1. He spent 3 years in Africa and Europe in chose to sell his Shoreview home and live in Brookl Center. rld war 11. yn orben had hisown business."lowa Stainless They are often drawn to the peace, quiet and renewal they find l Company," al Waterloo, Iowa. when s endin time at "his lace" on Leech Lake � ays. so needed in ays w Wateerloorloo , , sarc and la tter er fo r Humblonumbl Brani(e Travel l P g P o their active lives. ice. Cedar Falls. IA and Shorts Travel at erloo. Many nice trips were taken during her Joe and Ernee met while working on Sen. Don loy with these fine airlines. Kramer's volunteer campaign committee in 1994, and Joe sub- 1967 Bergh bought beautiful Shore Crest ort"on Leech Lake, Walker. Nor provid sequently was Emee's escort to the Governor's 1995 Inaugural aunch service with his 26 foot chns craft ch, built four cabins and added on to the Ball. They found they had a lot in common: German, Catholic, e. Lorraine did the reservations and kept the pro -life, history buffs and political animals. They feel most ins comfortable for their many nice guests. In 1974 they sold the resort and bought a house fulfilled in their volunteer work in the local Republican Party - in Long Prairie and Lorraine worked as a.secre- g iving the voters a choice of candidates - even if under the most to or Minnesota Distillers. g g orben missed buildinj so he designed and difficult circumstances. 'It their own home. F or eight years they enj Brooklyn Center continues to be a CITY OF HOPE Nestled. thepeaceandtranquilitythecount Nestle the oaks and birchehes, ' not especially to those moving here because of the abundance of uncommon out and see eaunt would come a p on room win- affordable housing. The new century brings new hope, new C9� dow. In the pond would enjoy their beginnings and wonderful challenges. surroundings, an at was put out for them. The bI r' um irds, blue bun- tinge, sea alter, groan d a host of Ernee McArthur and Joseph Lampe, April 7, 1998 them ommon birds en)oye houses, cattai s and the wild surroundings. c blue ron quietly looked on. l ' orben served on the board ofdirectors ofthe Vets Club, Browervitle from 1977.1986. He belonged to the V.F.W. and American Legion. Lorraine, V.F.W. auxiliary, tax aide volunteer' and the Todd unit of the American Cancer Soci- �� el Y. A son, Joseph, was born to them prematurely. dying at birth and buried in Trinity Cemetery with Lorraine's sister, Helen, and father, Wil- liam. Norben and Lorraine are now both retired and Plan to do a lot of traveling. Submrrred by Lor• ruble Berg (Lorraine was Project Chair for the Todd County Heritage Book) TO: Heritage Book Committee Brooklvn Historical Society P. O. Bog 29345 Brooklyn Center, MN 55429 FROM: Address ZIP Telephone We/I have attached our /my account (450 -500 words maximum) of family, business, school, or organizational history for publication in the Celebrating Brooklyn Township Heritage Book. We/I hereby give permission for our /my story to be edited (not changed) for reasons of space and/or repetition. , Signature Date El Photograph enclosed Caption to be included with photograph IF INCLUDING A PHOTOGRAPH, PLEASE SEND A STAMPED, SELF- ADDRESSED ENVELOPE LARGE ENOUGH TO RETURN PHOTO TO YOU. O O • a Holiday Shopping Spree! Monday November 30 at 6:00 - 8:00 At Brooklyn Center Community Center 6301 Shingle Creek Parkway Fundraiser Great Gift Ideas! • Make -up • Skin Care • Jewelry • Gift album's And • Home Living Ideas' Support your Brooklyn Center Crime Prevention Fund City Council Agenda Item No. 6a • • MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL • OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL WORK SESSION NOVEMBER 16, 1998 CITY HALL CONFERENCE ROOM B CALL TO ORDER The Brooklyn Center City Council met for a Special Work Session at Brooklyn Center City Hall and was called to order by Mayor Myrna Kragness at 7:00 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Debra Hilstrom, Kay Lasman and Robert Peppe. Also present: City Manager Michael J. McCauley, Assistant City Manager/HR Director Jane Chambers, Police Chief Joel Downer, Public Works Director Diane Spector, and Recording Secretary Maria Rosenbaum. WATER, SANITARY SEWER AND STORM WATER BUDGETS • Public Works Director Diane Spector discussed the 1999 Public Utility Rate Study and the recommended rate increases. The rates would increase as follows: Water $0.89 per 1,000 gallons to $0.91. Last year, when setting rates for 1998, it was projected that the water rate would have to increase to $0.91 in 1999, so this increase is right on target. Sanitary Sewer $45.25 per quarter for a single family residence to $47.50. The senior rate would increase from $24.89 per quarter to $26.13. Last year, it was projected that the residential rate would have to increase to $46.75, so the recommended rate is $0.75 higher than expected due to the sanitary sewer portion of the Neighborhood Street and Utility Program costing more on a continuing basis than anticipated. Storm Drainage $9.00 per quarter for a single family residence to $9.50. Last year there were no projections for a future rate increase since the study was not completed until this year. • 11/16/98 -1- DRAFT The preliminary capital project estimates for storm drainage • improvements have been identified and it is necessary to begin building a fund balance to finance these future improvements. Recycling There will be no increase with recycling. Residents will continue to be charged $6.45 per quarter. Ms. Spector asked the Council if they had any questions regarding the proposed increases. Various issues were discussed, including the cost of unfunded mandates, water quality, and capital projects. Council discussed the possibility of a future Water Treatment Plant (WTP). Ms. Spector noted that constructing a facility would significantly increase water rates. At this time the City is not required to construct a WTP, and it is not recommended. After further Council discussion regarding the proposed increases it was the Council consensus to have this budget on the November 23, 1998, agenda. It was noted that this budget approval is for 1999 only and the information provided was for long -term planning. BROOKSIDE MANOR Mayor Kragness informed the Council she received a call from Sherry Everett, Manager of Brookside Manor Apartments, and that Ms. Everett was very upset about the recent report she was • given regarding the number of calls from the Police Department. It was Ms. Everett's understanding that the police were to be called for anything suspicious and does not understand why Brookside Manor is considered one of the top three problem areas in the City. Ms. Everett discussed with Mayor Kragness her concerns with the Police Department attitudes and how she believes she is doing her job respectively. Council further discussed this issue and how it may not only be the residents at Brookside Manor that may be generating the number of calls. It was suggested having others get involved to help Ms. Everett understand that the City is working with her, not against her. Councilmember Carmody noted that the Association for Rental Management (ARM) meetings are available and provide assistance for rental managers. Ms. Everett's attendance at the ARM meetings would provide information that may be helpful. Mr. McCauley suggested a meeting be scheduled with Ms. Everett and the owners of Brookside Manor with a letter following indicating the goals and expectations of Ms. Everett. Mayor Kragness also discussed she had calls regarding the public telephones at Humboldt Square being used for drug dealing. She wanted to know how the phones could be removed. Mr. McCauley responded that the phone company would need to be notified by the property owners of Humboldt Square. ® 11/16/98 -2- DRAFT Police Chief Joel Downer said that he was not aware of the phones being used for drug dealing and that he would check into the phone usage. DISCUSSION OF RECENT SHOOTINGS WITH CHIEF DOWNER Mr. Downer was present to discuss the six recent shootings that have happened in the City of Brooklyn Center. 1. Martin Luther King Day which involved an injury. 2. May 24, 1998, on Highway 100. This incident was reported three days after the shooting by a parent of one of the children involved. 3. October 18, 1998, shots fired into home on the block of 5800 Humboldt Avenue. 4. November 5, 1998, a multiple shooting at 1100 73rd Avenue. 5. November 12, 1998, several shots fired into a car at 7200 Unity Avenue. 6. November 13, 1998, shots fired on I -694 and Highway 252. This was reported by the State Patrol and is under investigation. He informed the Council that these shootings are sometimes gang- related and that they are not usually random shootings, there is usually a target. The shooting on Martin Lutheran King Day was however a random shooting. He discussed the penalties for these types of shootings, and that in most of the cases there had been arrests. ® He also discussed the criteria for identifying a gang member and they are as follows: 1. Admits gang membership or association. 2. Is observed to associate on a regular basis with known gang members. 3. Has tattoos indicating gang membership. 4. Wears gang symbols to identify with a specific gang. 5. Is in a photograph with known gang members and/or using gang- related hand signs. 6. Name is on a gang document, hit list, or gang- related graffiti. 7. Is identified as a gang member by a reliable source. 8. Arrested in the company of identified gang members or associates. 9. Corresponds with known gang members or writes and/or receives correspondence about gang activities. 10. Writes about gangs (graffiti) on walls, books, papers, etc. An individual is identified as a gang member based on verifying at least three of the above and are involved in criminal activities. • 11/16/98 -3- DRAFT Councilmember Hilstrom asked if there were any gangs identified in the City of Brooklyn Center. Mr. Downer responded that to his knowledge there are 6 -12 black gang members, 10 -20 Asian gang members, and that there are no white gang members or motorcycle gang members at this time. This situation is constantly changing however. Mayor Kragness expressed concern that the when these types of crimes are committed the public is made aware of them, however, when these crimes are resolved nobody hears about it. She believes the public needs to hear more about the outcomes of these crimes. She will check with the Sun-Post Newspaper to see if something can be published. Councilmember Hilstrom asked Mr. Downer if he foresees any changes that will need to be made to the Police Department because of these types of problems. Mr. Downer responded that he is not sure if the department will need to change or not. At this point in time, there are enough officers to deal with the crimes, however, he would like to see more education at schools. He would like to have police personnel attend teacher workshops to educate teachers and students more of what the Police Department can do to help prevent such crimes. DISCUSSION OF ORIENTATION FOR NEW COUNCIL MEMBER Mr. McCauley discussed that since it was after 9:00 p.m., the discussion of orientation for new Council Member could be tabled to the next work session if there were no other miscellaneous items to be discussed. ADJOURNMENT Councilmember Hilstrom made a motion to adjourn the meeting at 9:15 p.m., seconded by Councilmember Carmody. Motion passed unanimously. City Clerk Mayor 11/16/98 -4- DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION NOVEMBER 9, 1998 CITY HALL 1. INFORMAL OPEN FORUM WITH CITY COUNCIL CALL TO ORDER INFORMAL OPEN FORUM The Brooklyn Center City Council met in informal open forum and was called to order by Mayor Myrna Kragness at 6:45 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Debra Hilstrom, Kay Lasman, and Robert Peppe. Also present: City Manager Michael J. McCauley, Assistant City Manager/HR Director Jane Chambers, Public Works Director Diane Spector, City Attorney Charlie LeFevere, and Recording Secretary Maria Rosenbaum. INFORMAL OPEN FORUM No one wished to address the Council. Mayor Kragness reported that she received a call from Barb Johnson, a Minneapolis Councilmember regarding the fencing along the 53rd Avenue Trail Project. Ms. Johnson favors the field stone and is very pleased with the project. ADJOURN INFORMAL OPEN FORUM A motion by Councilmember Carmody, seconded by Councilmember Lasman to adjourn the informal open forum at 6:48 p.m. Motion passed unanimously. 2. INVOCATION Rev. Tim Johnson, Brookdale Covenant Church, offered an invocation. 11/09/98 -1- DRAFT 3. CALL TO ORDER REGULAR BUSINESS MEETING The Brooklyn Center City Council met in regular session and was called to order b M tY � Y Myrna Y Y Kragness at 7:02 p.m. FLAG CEREMONY Cub Scout Pack 401 offered a Flag Ceremony. 4. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Debra Hilstrom, Kay Lasman, and Robert Peppe. Also resent: City Manager Michael J. McCauley, Assistant City Manager/HR pP P tY g Director Jane Chambers, Planning and Zoning Specialist Ron Warren, Public Works Director Diane Spector, City Attorney Charlie LeFevere, and Recording Secretary Maria Rosenbaum. 5. COUNCIL REPORT Councilmember Carmody reported the final public meeting hosted by the Parks and Recreation Commission will be held Tuesday, November 17, 1998, 7:00 p.m. at Northport Elementary School. 6. APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Carmody requested removing and tabling Item 6d until the November 23, 1998, Council meeting. A motion by Councilmember Peppe, seconded by Councilmember Lasman to approve the agenda and consent agenda as amended. Motion passed unanimously. 6a. APPROVAL OF MINUTES A motion by Councilmember Peppe, seconded by Councilmember Lasman to approve the minutes from the Special Work Session on August 31, 1998, Special Work Session on October 19, 1998, Regular Session on October 26, 1998, and Special Session on November 4, 1998. Motion passed unanimously. Y 6b. LICENSES A motion by Councilmember Peppe and seconded by Councilmember Lasman to approve the following list of licenses. Motion passed unanimously. 11/09/98 -2- DRAFT AMUSEMENT DEVICE - VENDOR Metro Coin, Inc. 9903 Valley View Road, Eden Prairie MECHANICAL SYSTEMS Automatic Garbage Door and Fireplaces 220 -77th Avenue NE, Minneapolis Suburban Air 8419 Center Drive, Minneapolis Whole Aire Company, Inc. 7330 205th Avenue NW, Elk River RENTAL DWELLING Initial: Kathy Becker 5746 Irving Avenue North Jason Johnson 4204 Lakebreeze Avenue North 6c. RESOLUTION ACCEPTING WORK AND AUTHORIZING FINAL PAYMENT, IMPROVEMENT PROJECT NO. 1998-08, CONTRACT 1998 -C, REFORESTATION OF 1997 STREET IMPROVEMENT AREAS RESOLUTION NO. 98 -194 Councilmember Peppe introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING WORK AND AUTHORIZING FINAL PAYMENT, IMPROVEMENT PROJECT NO. 1998 -08, CONTRACT 1998 -C, REFORESTATION OF 1997 STREET IMPROVEMENT AREAS The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. 6d. RESOLUTION ACCEPTING WORK AND AUTHORIZING FINAL PAYMENT, IMPROVEMENT PROJECT NO. 1998 -26, CONTRACT 1998 -G, RELOCATION OF 16" WATER MAIN AT WEST FIRE STATION This resolution was removed and tabled until the November 23, 1998, Council meeting. 6e. RESOLUTION ACCEPTING WORK AND AUTHORIZING FINAL PAYMENT, IMPROVEMENT PROJECT NO. 1998 -30, CONTRACT 1998 -P, MISCELLANEOUS SIDEWALK AND RETAINING WALL REPLACEMENTS RESOLUTION NO. 98 -195 Councilmember Peppe introduced the following resolution and moved its adoption: 11/09/98 -3- DRAFT RESOLUTION - ACCEPTING WORK AND AUTHORIZING FINAL PAYMENT, IMPROVEMENT PROJECT NO. 1998 -30, CONTRACT 1998 -P, MISCELLANEOUS SIDEWALK AND RETAINING WALL REPLACEMENTS The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. 7. PLANNING COMMISSION ITEMS 7a. PLANNING COMMISSION APPLICATION NO. 98020 SUBMITTED BY JOHN CRAIG. REQUEST FOR SPECIAL USE PERMIT APPROVAL FOR A VENDING MACHINE SUPPLY HOME OCCUPATION INVOLVING THE USE OF AN ACCESSORY BUILDING AT 6921 LOGAN AVENUE NORTH. THE PLANNING COMMISSION RECOMMENDED APPROVAL OF THIS APPLICATION AT ITS OCTOBER 29, 1998, MEETING. City Manager Michael McCauley discussed Planning Commission Application No. 98020 submitted by John Craig requesting Special Use Permit approval to conduct a vending machine supply home occupation involving the use of an accessory building at 6921 Logan Avenue North. Planning and Zoning Specialist Ron Warren further discussed that this property is zoned R -1 and is the fourth house north of 69th Avenue on the west side of Logan Avenue. It is bounded on the north, west and south sides by single family homes and on the east by Logan Avenue with single family homes also located on the opposite side of Logan Avenue. The applicant submitted a letter stating that D.C. Vending is a family owned vending company which operates out of their home and has apparently been in operation for some time. They store all snack items inside the home and store all of the soft drinks in the garage. D.C. Vending has been inspected by a representative of the Department of Agriculture of the State of Minnesota and has a current license /certification that expires on March 31, 1999. All items to be stored are brought by their own vans and there are no outside deliveries. Mayor Kragness asked if there were any complaints from the neighbors. Mr. Warren responded that neighbors within a 150 feet radius were notified of the Planning Commission's consideration. It appears that this home occupation can be kept to a relatively low level and should not cause problems in the neighborhood if it is conducted in an appropriate manner. Therefore, approval of this special use permit could be made subject to at least the following conditions: 11/09/98 -4- DRAFT 1. The special use permit is granted only for a vending machine supply business involving the storage of soft drinks in the accessory building. This use may not be altered or expanded in any way not comprehended by this application without first securing an amendment to this special use permit. 2. The special use permit is subject to all applicable codes, ordinances and regulations. Any violation thereof may be grounds for revocation. 3. All parking associated with the home occupation shall be off street on improved space provided by the applicant. Vehicle parking on the property shall be in compliance with Section 19 -103, Subdivision 12 of the City Ordinances. 4. The hours of operation shall be between the hours of 8:00 a.m. and 5:00 p.m., on Monday through Friday. Customer Service shall not be provided on the property. 5. A current copy of the applicant's license /certification from the Minnesota Department of Agriculture shall be kept on file with the City. Mr. Craig was present and Councilmember Carmody asked him how much longer he would need to find a location to store his truck. After discussion it was the consensus of the Council to allow Mr. Craig to have fourteen days to locate a location for his truck. A motion by Councilmember Carmody, seconded by Councilmember Lasman to approve Planning Commission Application No. 98020 subject to the above listed conditions. Motion passed unanimously. 7b. PLANNING COMMISSION APPLICATION NO. 98022 SUBMITTED BY KATHLEEN GODAR. REQUEST FOR SPECIAL USE PERMIT APPROVAL TO CONDUCT A HOME OCCUPATION THAT WILL INVOLVE CUSTOMER TRAFFIC AT 7004 OLIVER AVENUE NORTH. THE PLANNING COMMISSION RECOMMENDED APPROVAL OF THIS APPLICATION AT ITS OCTOBER 29,1998, MEETING. Mr. McCauley discussed Planning Commission Application No. 98022 submitted by Kathleen Godar requesting Special Use Permit approval to conduct a home occupation that will involve customer traffic at 7004 Oliver Avenue North. Mr. Warren further discussed this property is zoned R -1 and is the second house north of 70th Avenue North on the east side of Oliver Avenue North. It is bounded on the north, east and south by single family homes and on the west by Oliver Avenue North with single family homes and a portion of East Palmer Lake Park on the opposite side of the street. is 11/09/98 -5- DRAFT The applicant submitted a letter describing the home occupation and explained how it would operate. Ms. Godar is an independent sales representative for Colesce Couture, which sells loungewear, daywear and intimate apparel. She characterizes the line of clothing as being compared to Victoria's Secret. She shows gowns and other items on the party plan, which involves going to people's homes in a social setting to offer the company's line of clothing. The applicant also specializes in offering custom fit support bras, which require special fitting services, which she believes should not be done in a parry atmosphere. She wishes to offer this customized fitting service in her home. These fittings would be done by appointment only during specific hours during the week. Mayor Kragness asked if there were any complaints from the neighbors. Mr. Warren responded that neighbors within a 150 feet radius were notified of the Planning Commission's consideration. It appears this proposed home occupation will be very low key, if operated in the manner described by the applicant. Again, no over the counter sales of merchandise should be offered as part of this home occupation. The selling of products should be done in the manner described through party situations and off - premise contacts. Approval of this special use permit is recommended subject to at least the following conditions: 1. The special use permit is granted only for the customized fitting of intimate apparel at 7004 Oliver Avenue North in conjunction with off - premise sales of this merchandise. This may not be altered or expanded in any way not comprehended by this application without first securing an amendment to this special use permit. 2. The special use permit is subject to all applicable codes, ordinances and regulations. Any violations thereof may be grounds for revocation. 3. All parking associated with the home occupation shall be off - street on improved space provided by the applicant. Vehicle parking on the property shall be in compliance with Section 19 -103, Subdivision 12 of the City Ordinances. 4. The hours of operation for the customized fittings shall be between the hours of 9:00 a.m. and 8:30 p.m. Monday through Thursday, 9:00 a.m. and 5:00 p.m. on Friday and 9:00 a.m. and 3:00 p.m. on Saturday. 5. There is no over the counter sales of merchandise comprehended through the granting of this special use permit. Sales shall be conducted off - premises. A motion by Councilmember Peppe, seconded by Councilmember Carmody to approve Planning Commission Application No. 98022 subject to the above listed conditions. Motion passed unanimously. 11/09/98 -6- DRAFT '� 8. COUNCIL CONSIDERATION ITEMS 8a. REPORT ON 69TH AND BROOKLYN BOULEVARD PROJECT Mr. McCauley outlined the assessed market values, the partnership offers, and the status of each property involved with the 69th and Brooklyn Boulevard Project. Darnell Ostrom, daughter of Roger and Darlene Gustafson who live at 6935 June Avenue, addressed the Council regarding the assessed market values. She did not believe the assessments were up to date. Ms. Ostrom also wanted to clarify a statement from a letter her parents received and requested to have all mailings, or a copy of all mailings sent to her. City Attorney Charlie LeFevere discussed this would be possible if a written notice was received with the approval to do so. A written notice of approval was received at the meeting. The EDA entered into a contract with the redeveloper and the contract states that the redeveloper has until December 31, 1998, to close on the entire redevelopment. Mr. McCauley advised there were only two ways the EDA would become involved in acquiring property under the contract. The EDA has agreed to acquire properties that the redeveloper cannot acquire through negotiation or offers if, and only if all of the following occur: * Redeveloper requests the EDA to use eminent domain. * Redeveloper submits and receives plan approval. * Redeveloper has submitted proof of financing for the project. * Redeveloper deposits sufficient funds to cover all of the EDA's costs of acquisition through eminent domain. The redeveloper has not requested that the EDA commence eminent domain proceedings at this time. If the redeveloper requested that the EDA commence eminent domain proceedings and complied with all the prerequisites for the EDA to commence such proceedings, the EDA would have the option to use the quick take provisions of Minnesota Law which allows possession in 90 days after the petition is granted. The other way the EDA would become involved in acquisition is pursuant to Section 3.1 (a) of the contract which provides that the EDA may, at its sole discretion, assume any option or purchase agreement negotiated by the redeveloper and acquire the property under the terms of such agreement. If the EDA were to acquire property under that provision, it would require an executed purchase agreement or option between the redeveloper and the owner. There were other property owners present to discuss their concerns and frustration with the progress of the project. Dan Holmes, 6932 June Avenue North, addressed the Council regarding his concern about not getting any response from the redeveloper Dave Nelson, President of Boulevard Shoppes, and had come to the City Council to seek help. 11/09/98 -7- DRAFT Julie Berg, 6944 June Avenue North, addressed the Council and believes that a back -up plan needs to be established or a time line for arrangements if the redeveloper does not follow through on the project. Mayor Kragness asked if a letter could be sent to the redeveloper urging the redeveloper to work with the residents and to express the concerns heard from the residents. Mr. McCauley responded that a letter could be prepared and mailed to Mr. Nelson on behalf of the Council. Councilmember Hilstrom requested to have an update at the first meeting in December and that this also be put on the January 11, 1999, agenda. 8b. REPORT ON BROOKDALE - TAX REBATE Mr. McCauley discussed that the former owners of the Brookdale Center appealed its valuation for property tax purposes each year from 1992 through 1996. The cases were resolved in March 1998 and the settlement approved by the Bankruptcy Court in August 1998. The City's share of the settlement has been calculated and will have to be paid in the near future. The City has made reserve provisions for the abatement so that the amount can be paid. 8c. RESOLUTION AUTHORIZING EXECUTION OF GRANT AGREEMENT END GRANT FOR THE BROOKLYN CENTER EARLE BROWN HERITAGE CENTER RESTORATION PROJECT Mr. McCauley discussed that this was the grant agreement with the State of Minnesota for the work done on the Earle Brown Heritage Restoration Project. RESOLUTION NO. 98 -196 Councilmember Lasman introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING EXECUTION OF GRANT AGREEMENT END GRANT FOR THE BROOKLYN CENTER EARLE BROWN HERITAGE CENTER RESTORATION PROJECT The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Carmody. Motion passed unanimously. 8d. RESOLUTION APPROVING THE CONTRACT FOR MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT EMPLOYEES' UNION, LOCAL #320 AND THE CITY OF BROOKLYN CENTER FOR THE CALENDAR YEARS OF 1998 AND 1999 11/09/98 -8- DRAFT Mr. McCauley discussed there was a correction made to the resolution and the correction read: WHEREAS, an Arbitrator has awarded to Teamsters Employees' Union, Local #320 (Department Heads) a contract for the years 1998 and 1999 as attached; RESOLUTION NO. 98 -197 Councilmember Carmody introduced the following resolution and moved its adoption: RESOLUTION APPROVING THE CONTRACT FOR MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT EMPLOYEES' UNION, LOCAL #320 AND THE CITY OF BROOKLYN CENTER FOR THE CALENDAR YEARS OF 1998 AND 1999 The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. 8e. PRELIMINARY DESIGN PARAMETERS, IMPROVEMENT PROJECT NO. 1999 -05, 53RD AVENUE TRAIL Mr. McCauley discussed the preliminary designs of the 53rd Avenue trail, greenway and fence developed for Council approval. Public Works Director Diane Spector described the design elements and color renderings which provided an idea of what the fence would look like and its relationship to the houses and greenways. The greenway will be approximately 62 -65 feet wide from the back property line of the new parcels to the back of the curb on 53rd Avenue. The existing concrete sidewalk will be removed. The greenway can be thought of as two areas: the "front half', or the area from 53rd Avenue to about the middle, and the "back half', the area from the middle of the greenway to the fence. The 100 foot trail will meander through the "front half', while the "back half' will be gently rolling with a slight rise. There was concern about the slight rise and it was discussed that the rise will be easy and will be "wheelchair" friendly. The fence will offset from the property lines 12 -18 inches. This offset will allow the fence and columns to be located entirely on the greenway. The proposed fence is a five -foot, black, industrial grade aluminum double rail fence, with stone columns every 32 feet. Two materials for the fence columns have been proposed, fieldstone and chipped face block. Mr. McCauley informed the Council that at the previous public meetings regarding this project, the fieldstone was generally favored. The Council was asked to comment on an entry sign for this area. Ms. Spector discussed that a sign has not been designed at this time, but a conceptualized fieldstone monument with an engraved wooden `Brooklyn Center" sign is being considered. It was discussed that a wood sign, something compatible to the design at North Regional Mississippi Park with fieldstone would be appropriate. 11/09/98 -9- DRAFT Mr. McCauley suggested having a couple of designs prepared for Council consideration. A motion by Councilmember Hilstrom, seconded by Councilmember Peppe to approve the preliminary designs for the 53rd Avenue Trail. Motion passed unanimously. 8f. SET DATE OF PRESENTATION BY ERNEE McARTHUR Mr. McCauley requested setting November 23, 1998, 6:30 p.m. to give Emee McArthur an opportunity to do a presentation regarding the Historical Society Project. A motion by Councilmember Lasman, seconded by Councilmember Hilstrom to set November 23, 1998, 6:30 p.m. for Ms. McArthur's presentation. Motion passed unanimously. 9. ADJOURNMENT A motion by Councilmember Lasman, seconded by Councilmember Hilstrom to adjourn the meeting at 8.37 p.m. Motion passed unanimously. City Clerk Mayor 11/09/98 -10- DRAFT i • City Council Agenda Item No. 6b • • City of Brooklyn Center A great place to start. A great place to stay. • MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Maria Rosenbaum, Administrative Technician , jn� DATE: November 18, 1998 SUBJECT: Licenses for Council Approval The following companies /persons have applied for City licenses as noted. Each company /person has fulfilled the requirements of the City Ordinance governing respective licenses, submitted appropriate applications, and paid proper fees. Licenses to be approved by the City Council on November 23, 1998: AMUSEMENT DEVICES - OPERATOR O Yun's Restaurant d/b /a Denny's 6405 James Circle North CHRISTMAS TREE SALES LOT PQT Company 5801 Xerxes Avenue North PQT Company 5040 Brooklyn Boulevard MECHANICAL SYSTEMS Commercial Plumbing and Heating, Inc. 3151 101 st Avenue NE, Blaine Pierce Refrigeration 1920 2nd Avenue South, Anoka RENTAL DWELLING Renewal: Terry Hartmann 6809 Fremont Place North John/Gail Lambert 5900 Washburn Avenue North Lyle Miller 3501 47th Avenue North Allan Olson 7112 Riverdale Road Allan/Vicki Olson 7111 Riverdale Road SING HANGER Attracta Sign 7420 West Lake Street, St. Louis Park 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City Hall & TDD Number (612) 569 -3300 Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494 An Affirmative Action /Equal Opportunities Employer City Council Agenda Item No. 6c O • �pOKLYN GE E BROOKLYN CENTER i POLICE DEPARTMENT POLICE MEMORANDUM TO: Sharon Knutson, City Clerk FROM: Joel Downer, Chief of Polio v DATE: November 12, 1998 SUBJECT: Application for Exemption from Lawful Gambling License (Raffle Application) On November 7, 1998, the Brooklyn Center Police Department received an Application for • Authorization to Conduct an Excluded Raffle from the Southern Anoka County Chamber of Commerce. This application is for an event to be held at the Hilton Hotel on February 6, 1999. This application has been approved and will be returned to the Southern Anoka County Chamber of Commerce representative after City Council review. The representative will forward it to the State Gambling Control Board. If you or any member of the City Council objects to issuing this license, you must notify J g Y me within 30 days according to Minnesota State Statute. JD:kh soanoka2.mem LG24OR Q3 456 > (Rev. 1/21/93 ) Minnesota 0 f nnesota Lawful Gambling � y4 ` Application for Authorization to Conduct an Excluded 1iQV w (If your organization has been licensed or exempted in the RECEtVW a current calendar year, you are not eligible to apply for excluded raffle) 0, CEO r n n i Fill in the unshaded areas of this application and send it to the 11" Gambling Control Board at least 30 days pri to the activity `�ZZIZ026� Organization Irlformation a FOR BOARD USE ONLY Organization Proof Southern Anoka County Chamber o Commerce I ❑ S ❑ C ❑ Street O ❑ N ❑ NA ❑ 12750 East Moore Lake Drive, Suite C City Fridley MN State Zip code 55432 Other Activity Type of nonprofit organization (check one): ❑ Fraternal ❑ Veteran ❑ Religious ® Other nonprofit organization / >' Type of proof of nonprofit status attached (check one): p I x❑ Certificate of Good Standing - Minnesota Secretary of State's Office C1 Internal Revenue Service Affiliate of Parent nonprofit organization (charter) f X � -� g Excluded Raffle Activity Information The value of All raffle prizes in a calendar year may not exceed $750 Date of raffle drawing February 6 1 999 Total market value of raffle prizes $ 500.00 Name of person in charge of raffle Robert Gabler Phone ( 612 1 571 -9781 i Premises where excluded raffle will be conducted Name of premises Hilton Minneapolis North Street Address 2200 Freeway Boulevard City OR County And Township Brooklyn Center, MN 55430 Chief Executive Officer's Signature The information provided above is comolete and accurate to the best of my knowledge. f Ex uti cer' gnatur Name (please print) ' Date Barbara Warren October 30, 1998 Acknowledgment of Registration (For Board Use Only) Your request to conduct excluded raffle has been received and is acknowledged by the Executive Director of the Gambling Control Board. Acknowledged by: j D Gambling Control Board Date -- Send the comp d registration form with your organization's proof of nonprofit status to: t Gambling Control Board White - Original 1711 W. County Road B, Suite 300 South Yellow - Board Roseville, MN 55113 This form will be made available in aftemative FOR BOARD USE ONLY format (i.e. large print, braille) upon request. q t &,k City Council Agenda Item No. 6d 1 • � CEll BROOKLYN CENTER POLICE DEPARTMENT POLICE MEMORANDUM TO: Sharon Knutson, City Clerk FROM: Joel Downer, Chief of Police DATE: November 17, 1998 SUBJECT: Application to Conduct Excluded Bingo Orchard Lane Elementary School On November 17, 1998, the Brooklyn Center Police Department received an Application for Authorization to Conduct Excluded Bingo from the Orchard Lane PTA. This application is for • an event to be held at the Orchard Lane Elementary School on February 20, 1999. This application has been approved and returned to the Orchard Lane PTA who will forward it to the State Gambling Control Board. If you or any member of the City Council objects to issuing this license, you must notify me within 30 days according to Minnesota State Statute. //� e Downer Chief of Police JD:kh Minnesota Lawful Gambling Application to Conduct Excluded Bingo - LG240B If your organization has been licensed or exempted in the current calendar year, you are not eligible to apply for excluded bingo. Organization Information Organization Name n � FOR BOARD USE ONLY Proof Street n i ❑ g ❑ C ❑ 07 NFI NA 7 ity Statg>� Other Activity � � rtY Type of nonprofit org" zation (check one): ❑ Fraternal ❑ veteran ❑ Religious 1 0 Other nonprofit organization Type of proof of nonprofit - attach a copy (see instructions): ❑ Certificate of Good Standing - Minnesota Secretary of State's Office ❑ Internal Revenue Service ❑ Affiliate of Parent nonprofit organization (charter) Excluded Bingo Activity Information Has your organization held a bingo event in the current year? No_X_ Yes If yes, list the dates that bingo was conducted Check one: The bingo event will be one of four or fewer bingo events your organization will hold this year. Date(s) of bingo event -OR - U ❑ The bingo event will be conducted (up to 12 consecutive days) in connection with a: County Fair - Date(s) of bingo event State Fair - Date(s) of bingo event Civic Celebration - Date(s) of bingo event Name of the person in charge of the bingo event Daytime Phone Premises here Excluded Bingo Will Be Conducted Name of Premises a -. \.sz Street Address too V) City OR County AND Township ie Be sure to co pie' page 2 A Page 1 2198o 2 Page 2 of 2 Application to Conduct Excluded B ingo - LG240 { B � 2/98 Organization Name �b C A C� ( CA, Chief Executive Officer's Signature The information provided in this ap tion is complete and accurate tq the best of my knowledge. Chief Executive Officer's signature Name (please print),1 7C ock �,�., Date_ / � Local Unit of Government Acknowledgment and Approval ff the gambling premises Js within city limits, the city must sign this application On behalf of the city, I hereby approve this application for excluded bingo activity at the premises located Brooklyn Center within the city's jurisdiction. Print a of city Signature of city personnel receiving application Title C?.ty Clerk Date I I of the gambling premises is;iocated in a township, both the county and township must sign this;.apptication �._. .. .__,.... ,a ..� ��. ...,�... �s For the township: On behalf of the township, I acknowledge that the organization is applying for excluded bingo activity within the township limits. Print name of township A township has no statutory authority to approve or deny an application (Minn. Stat. sec. 349.213, subd. 2). Signature of township official acknowledging application Title Date For the countv: On behalf of the county, I hereby approve this application for excluded bingo activity at the premises located within the county's jurisdiction. Print name of county (Signature of county personnel receiving application) Title Date / / Mail Application and Attachment(s) Send the completed application and a copy of your proof of nonprofit status at least 30 days prior to the activity date to: Gambling Control Board 1711 West County Road B, Suite 300 South Roseville, MN 55113 If your application is denied by the local unit of government, do not send the application to the Gambling Control Board. Acknowledgment of Gambling Control Board Your request to conduct excluded bingo has been received and is acknowledged by the Gambling Control Board. Acknowledged by Licensing Specialist Date / / Questions? Call the Licensing Section of the Gambling Control Board at (612) 639 -4000. If you use a TTY, you can call the Board by using the Minnesota Relay Service at 1- 800 -627 -3529 and ask to place a call to (612) 639 -4000. This form will be made available in alternative format (i.e. large print, Braille) upon request. The information requested on this form will become public information when received by the Board, and will be used to determine your compliance with Minnesota statutes and rules governing lawful gambling activities. Application to Conduct Excluded Bingo - LG240B, Instructions 2/98 When May Excluded bingo (without a license) may be conducted: Excluded Bingo - by an organization that conducts four or fewer bingo occasions in a calendar year; or be Conducted? - in connection with a county fair, the state fair or a civic celebration if it is not conducted for more that 12 consecutive days in a calendar year. Completion of Complete the application, and attach proof of your organization's nonprofit status from either Application the IRS or the Minnesota Secretary of State. Minnesota Secretary of State IRS Income Tax Exemption Certificate of Good Standina - Nonprofit Under a national oraanization Articles of Incor ooration O R If your organization falls under a national Attach a copy of your organization's organization, attach both of the following: Certificate of Good Standing (317A) 1. a copy of the IRS letter showing that showing incorporation as a nonprofit your national organization has been a organization. registered nonprofit 501(c) organiza- This certificate can be obtained from the tion and carries a group ruling, and Minnesota Secretary of State: 2. a copy of the charter, or letter from your national organization, recognizing your Minnesota Secretary of State organization as a subordinate. Business Services Division 180 State Office Building Not under a national oro n' i St. Paul, MN 55155 If your organization does not fall under a national organization, attach a copy of the Phone: (612) 296 -2803 IRS income tax exemption [501(c)] letter in the name of your organization, showing income tax exempt status. To obtain a copy of your federal income tax exempt letter, send your federal ID number and the date your organization initially applied for tax exempt status to: IRS P.O. Box 2508 Room 4010 Cincinnati, OH 45201 Phone: (513) 684 -3957 Sales tax exempt status or federal ID' employer numbers are not proof of income tax exempt status. Authorization to Your application will be acknowledged by signature of the Gambling Control Board staff. Conduct Excluded Bingo. A; signed copy will be returned to your organization as your authorization to conduct the activity. • You will not be issued 'a number for this application. Gambling activity conducted without written authorization from the Gambling Control Board will be referred to the Department of Public Safety, Alcohol & Gambling Enforcement Division. Recordkeeping Your organization must keep your bingo records for 3 -1/2 years. Questions? Contact the. Control Board at (612) 639 -4000. EXEMPT AND EXCLUDED ORGANIZATIONS Prizes per bingo occasion may not exceed $2,500, not including cover -all games. If cover -all games are conducted, the RIS prizes per bingo occasion may not exceed $3,500 (that is, $2,500 plus the cover -all of up to $1,000). Prizes awarded for progressive games are not subject to the limits established for bingo occasions. Type of Game Description Prizes Single game A bingo game other than a cover- May not exceed $200. all or progressive game. Cover -all game A bingo game where all spaces on May not exceed $1,000 for all cover -all games played during an the bingo face must be covered. occasion. Progressive A game in which the value of the Up to $2,000. game prize increases depending upon . May start at up to $300 and increase by up to $100 per whether. the prize was won at a occasion. previous occasion. progressive prizes may not exceed $36,000 in any calendar_ `year. Consolation prize •, Up to'$100 where a progressive game is played and the accumulated prize is not won. • Consolation prizes count toward the occasion limit of $2,500. Gambling equipment not allowed as prize Additional information Prizes may not consist of gambling equipment (such as For additional information, you may wish to obtain a copy of pull -tabs, tipboard tickets, raffle tickets, or the Lawful Gambling Manual, an easy -to -use reference guide paddlewheel tickets), except for coupons to redeem for the conduct of lawful gambling, or a copy of statutes and bingo hard cards or bingo paper. rules that govern lawful gambling. There is a charge for the copies. Contact: Minnesota's Bookstore 117 University Avenue St. Paul, MN 55155 Phone: 1 -800- 657 -3757 or 612- 297 -3000 Bingo prizes - value, ownership References Donated prizes - Donated bingo prizes must be valued Statutes and rules contain regulatory requirements for the at their fair market value. Fair rilal'k value i� what a Cvli of b ing0. Those rzf icIICeS are: willing buyer would pay a willing seller when neither has to buy or sell and both are aware of the conditions Minn. Statutes 349.12 ... Definitions of the sale. Minn. Statutes 349.17 ... Conduct of Bingo Minn. Statues 349.1$ .:..Premises Used Far Gambling Merchandise prizes -Merchandise prizes must be Minn. Statutes 349.19 .::.Records and Reports valued at their fair "market value and cannot be Minn. Statutes 349.211:.. Prize Limits redeemed for cash or converted into cash. ro Minn. Rules 7861 efinit' .. Real or personal p perry Prizes must be Minn. Rules 7861.0060 Conduct of Lawful Gambling paid for without lien or interest by others prior to the < Minn. Rules 7861 .0070.'.. Bingo occasion. Savings bonds - Savings bonds must be announced and reported at their purchase price.' EXAMPLE - A $50 savings bond would be announced as $25. 2/98 r: Isharedlformsl exbingo.doc ,f Form ST -17 i+ 1 a •r f v (Rev. 8-1.74).1>)P�l + - State of Minnesota ° �i 3. ; 7' . I = Department of Revenue — Sales and Use Tax Division Centennial Office Building — St. Paul, Minnesota 55145 �; ,i• < `', ' CERTIFICATE OF EXEMPT STATUS — EXEMPT ORGANIZATION a Under the provisions of Section 25, Subdivision 1 (p) of the Minnesota Sales and Use Tax Law, the organization whose name appears fTl: below is certified to be exempt from sales and use taxes app licablc to purchases, rentals and leases of tan g ible crional p roperty to be !� /' 1 ` ' 8) P P P Y ) t • ,,, l };' used solely and exclusively in the performance of charitable, religious or educational functions by that organization. _ Certificate No. ' ' . 1 Orchard Lane Elementary School PTA ~ 1 7�i ' M i; ` • iQ# �.;. -- � i •� " 6201 Noble Avenue North E S. 2G43 ! � ��•��{ a �� � , ' Date Issued Mi nneapolis, l�ijnnesota 55429 �. t �• �'; i March 19, 1976 • AliTliUlL ROEMEIt, Commissio cr of Rcvnwc (' 'a i.• r t 7 . �rt ti } E r t This certificate ii valid until revoked by the n�•'": } n yo e fl • �lr �rryl '�,, � j f� !' r ,' •' Minnesota Department of Revenue. P D. S•. MUNDARL Director *"t� i r 7 a •< Sales and Use Tax Bivision �.t. 0f.4 .. a 1 - �' r 1� t • The exemption does not apply to purchases of n)cals, h:deint• or tickets of admission x , i City Council Agenda Item No. 6e MEMORANDUM • TO: Michael J. McCauley, City Manager FROM: Charlie Hansen, Finance Director G H DATE: November 18, 1998 SUBJECT: Resolution Appointing Auditors for the Year Ended December 31, 1998 In 1987, the City began using the firm of Deloitte & Touche for audit services. In 1994, the City Council directed that a requests for proposals be solicited from other auditing firms. An audit committee composed of Financial Commission members and staff members was formed in the summer of 1994 and reviewed proposals from six firms. The committee recommended that the City continue to receive services from Deloitte & Touche. In 1996, the Financial Commission recommended and the City Council adopted a policy which established a schedule for conducting requests for proposals (RFPs) for the six professional services used by the Finance Department. The purpose was to ensure that some RFPs would be done each year and that all services would be periodically rebid. This schedule established the year 2000 as the next time that a RFP would be conducted for audit services. The Financial Commission has a recommendation which will be submitted to the City Council to make the year 2001 be the next time an RFP will be conducted. The proposal accepted from Deloitte & Touche in 1994 covered audits for the years 1994, 1995, and 1996. A proposal submitted by Deloitte & Touche in 1996 provides for audits of the years 1997, 1998, and 1999. Deloitte & Touche has submitted the attached engagement letter which provides for them to audit the City's financial report and records. They propose a fee for this service for 1998 of $28,175 which is an increase of 2.45 % over the actual fee for the service for the prior year. Based on factors known to staff, Deloitte & Touche is doing excellent work, and we recommend continuing their service. Deloitte normally assigns four people to our audit. The are: a partner, a manager, an in charge accountant, and a junior accountant. The in charge accountant and junior accountant do most of the work in our offices while the partner and manager are in contact by phone and review work at Deloitte's office. Deloitte has audited the City since 1987. It has been their policy throughout this time to rotate in • at least one new person out of the four assigned to our audit each year. The more junior members of their team rotate more frequently than the senior members. All of the positions have changed at least once, usually several times since 1987. For this year's audit, Deloitte has informed me that last year's manager is leaving our team. Last year's in charge accountant will become this year's manager while retaining in charge accountant duties. A new junior accountant will be assigned. Member introduced the following resolution and moved • its adoption: RESOLUTION NO. RESOLUTION APPOINTING AUDITORS FOR THE YEAR ENDED DECEMBER 3L 1998 WHEREAS, Section 7.01 of the City Charter provides that the City Council shall have full authority over the financial affairs of the City, including the conduct of an annual audit; and WHEREAS, the City Council has contracted with the firm Deloitte and Touche for the conduct of these audits for the years 1987 through 1997; and WHEREAS, the City Council appointed an Audit Committee to conduct a request for proposal process in 1994 and they have recommended that Deloitte & Touche LLP be retained as the City's auditor; and WHEREAS, Deloitte and Touche has submitted a proposal to audit the City for the year 1998 at a fee of $28,175. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that Deloitte and Touche be appointed to conduct the City audit for the year 1998 at a fee of $28,175. Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. i Deloitte & ® Touche Deloitte & Touche LLP Telephone: (612) 397 -4000 W 400 One Financial Plaza Facsimile: (612) 397 -4450 120 South Sixth Street Minneapolis, Minnesota 55402 -1844 November 16, 1998 The City Manager and Members of the City Council City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430 Dear City Manager and Council Members: We are leased to serve e as independent accountants and auditors for the ' n Center the P City of Brooklyn Y City) for the year ending December 31 1998. Mr. Cliff Hoffman will be responsible for the services that we perform for the City. It will be the responsibility of Mr. Hoffman to ensure that the City receives quality service. Mr. Hoffman will, as he considers necessary, call on other individuals with specialized knowledge, either in this office or elsewhere in our firm, to assist in the performance of our services. While auditing and reporting on the City's financial statements for the year ending December 31, 1 998 is the service that we are to provide under this engagement letter, we would also be pleased to assist the City on issues as they arise throughout the year. Hence, we hope that the City will call Mr. Hoffman whenever management believes he can be of assistance. This letter sets forth our understanding of the terms and objectives of our engagement, the nature and scope of the services we will provide, and the related fee arrangements. We will perform this engagement subject to the terms and conditions set forth herein. Audit of Financial Statements and Other Reporting We will audit the City of Brooklyn Center's general purpose financial statements for the year ending December 31, 1998. In addition, we will audit the City's compliance with laws and regulations related to federal awards and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated by the Legal Compliance Task Force, pursuant to Minnesota Statutes Section 6.65; and report on the City's Schedule of Expenditures of Federal Awards. Our audits will be conducted in accordance with generally accepted auditing standards, standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Office of Management and Budget Circular A -133, Audits of States, Local Governments and Non-profit Organizations (OMB Circular A -133). DeloitteTouche Tohmatsu The City Manager and Members of the City Council City of Brooklyn Center November 16, 1998 Page 2 We will plan and perform our audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud, and we will perform tests of the City's compliance with certain provisions of laws, regulations, contracts, and grants. However, because of the characteristics of fraud, particularly those involving concealment and falsified documentation (including forgery), a properly planned and performed audit may not detect a material misstatement. Therefore, an audit conducted in accordance with generally accepted auditing standards is designed to obtain reasonable, rather than absolute, assurance that the financial statements are free of material misstatement. An audit is not designed to detect error or fraud that is immaterial to the financial statements or to detect immaterial instances of noncompliance. As part of our audit, we will consider the City's internal control and assess control risk, as required by generally accepted auditing standards and Government Auditing Standards, for the purpose of establishing a basis for determining the nature, timing, and extent of auditing procedures necessary for expressing an opinion on the financial statements, and not to provide assurance on the City's internal control or to identify reportable conditions. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our auditing procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We will make audit inquiries and request written responses from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. As part of our audit of compliance with the requirements of major federal programs, we will obtain an understanding of the City's internal control related to administering major federal programs and we will assess risk as required by OMB Circular A -133 for the purpose of establishing the nature, timing, and extent of auditing procedures necessary for expressing an opinion concerning compliance with laws and regulations related to ma federal award .. � pro As required by OMB Circular A -133, our audit of compliance will also include tests of transactions related to federal award programs for compliance with applicable laws and regulations. However, because of the concept of reasonable assurance and because we will not perform a detailed examination of all transactions, there is a risk that material errors, fraud, or illegal acts may exist and not be detected b} us. We will advise you, however, of any matters of that nature that come to our attention and will include such matters in the reports required for an audit in accordance with OMB Circular A -133. Our responsibility as auditors is limited to the period covered by our audit and does not extend to matters that The City Manager and Members of the City Council City of Brooklyn Center November 16, 1998 Page 3 arise during any subsequent periods for which we have not been engaged as auditors or for which we have performed no substantive auditing procedures. The objective of an audit carried out in accordance with the standards described above is (1) the expression of an opinion concerning whether the financial statements present fairly in all material respects the financial position, results of operations, and cash flows of the City in conformity with generally accepted accounting principles; (2) reporting on the internal control relevant to an audit of the financial statements; (3) reporting on the City's compliance with laws and regulations, which could have a material effect on the financial statements; (4) reporting on whether the schedule of expenditures of federal awards is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole; (5) the reporting on our determination as to whether the City's internal control provides reasonable assurance of compliance with federal laws and other laws and regulations; (6) the expression of an opinion on whether the City complied with specific terms and conditions of its major federal programs; and (7) preparation of a schedule of findings and questioned costs to summarize the results of the audit in accordance with the requirements of OMB Circular A -133. The report on our understanding of the City's internal control and the assessment of control risk made as part of the City's financial statement audit will include (1) the scope of our work in obtaining an understanding of the City's internal control and in assessing the control risk and (2) the reportable conditions, including the identification of material weaknesses identified as a result of our work in understanding and assessing the control risk. In addition, we will render a report on illegal acts, as required, depending on the results of our audit procedures. We will complete and sign one copy of the auditor's information section of the Data Collection Form. The City's management must prepare all other sections of the form and sign the form prior to its submission to the Federal Bureau of the Census. Our ability to express an opinion and render those reports, and the wording of our opinion and reports, will, of course, be dependent on the facts and circumstances at the date of such reports. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or decline to issue a report as a result of this engagement. If we are unable to complete our audit or if our auditors' reports require modification, the reasons therefor will be discussed with the Citv's management and the City Council. We understand that our reports on the City's internal control, as part of the financial statement audit, and on compliance with laws and regulations are intended for the information of the City Council, management, and others within the applicable State of Minnesota or federal organizations. Neither our audit of the City's financial statements for the year ending December 3 I, 1998, nor any other services provided pursuant to this engagement letter, will provide any assurances, nor will we express The City Manager and Members e of the City Council City of Brooklyn Center November 16, 1998 Page 4 any opinion, that the City's systems or any other systems such as those of the City's vendors service P Y Y � ty providers, customers, component units, unconsolidated subsidiaries or joint ventures in which the City has an investment, or other third parties, are year -2000 compliant. In addition, we are not engaged to perform, nor will we perform as part of this engagement, any procedures to test whether the City's systems or any other systems are year -2000 compliant or whether the plans and activities of the Citv or any third parties are sufficient to address and correct system or any other problems that might arise because of the year 2000, nor will we express any opinion or provide any other assurances with respect to these matters. lvfanagement's Responsibility: The financial statements are the responsibility of management. In this regard, management has the responsibility for, among other things, establishing and maintaining effective internal control over financial reporting, for properly recording transactions in the accounting records, for making appropriate accounting estimates, for safeguarding assets, for the overall accuracy of the financial statements and their conformity with generally accepted accounting principles, and for making all financial records and related information available to us. Management is also responsible for compliance with laws, regulations, contracts, and grants, and for establishing and maintaining effective internal control to ensure such compliance PP om Hance with those requirements e a li cable to its activities. Management is also responsible for implementing q v p o mplementin the requirements of Government Accounting Standards Board Statements No. 27, and No. 31, which we understand are effective beginning this fiscal year. We will advise you about accounting principles and their application and will assist in the preparation of your financial statements, but the responsibility for the financial statements remains with you. We will make specific inquiries of management about the representations embodied in the financial statements. As part of our audit procedures, we will request that management provide us with a representation letter acknowledging management's responsibility for the preparation of the financial statements and for compliance with laws and regulations applicable to federal award programs, and confirming certain representations made to us during our audit. The responses to those inquiries and related written representations of management required by generally accepted auditing standards are part of the evidential matter that we will rely on as auditors in forming our opinion on the City's financial statements. Because of the importance of management's representations, the City agrees to release and indemnify Deloitte & Touche LLP and its ersonnel from all claims liabilities and expenses relating P � to P our services under this engagement letter attributable to a misrepresentation b n m sr resentation b management. .- .- Y P Y mane If the City intends to publish or otherwise reproduce in any document our report on the City's financial statements, or otherwise make reference to Deloitte & Touche LLP in a document that contains other information in addition to the audited financial statements (e.g., in a debt or equity offering circular or in a private placement memorandum), the City agrees that prior to making any such use of our report, or reference to Deloitte & Touche LLP, the City's management will provide us with a draft of the document to read and obtain our approval for the inclusion or incorporation by reference of our report, or the reference to Deloitte & Touche LLP, in such document before the document is printed and distributed. The City Manager and Members of the City Council City of Brooklyn Center November 16, 1998 Page 5 The inclusion or incorporation by reference of our report in any such document would constitute the reissuance of our report and any request by the City to reissue our report or to consent to its inclusion or incorporation by reference in an offering or other document will be considered based on the facts and circumstances eyistinQ at the time of such request. The estimated fees outlined herein do not include any services that would need to be performed in connection with any such request to make use of our report, or reference to Deloitte & Touche LLP; fees for such services (and their scope) would be subject to our mutual agreement at such time and would be described in a separate engagement letter. Other Communications Arising from the Audit: In connection with the planning and the performance of our audit, generally accepted auditing standards and Government Auditing Standards require that we ensure that certain matters are communicated to the City Council. We will report directly to the City Council any fraud of which we become aware that involves senior management, and any fraud (whether caused by senior management or other employees) of which we become aware that causes a material misstatement of the financial statements. We will report to senior management any fraud perpetrated by lower level employees of which we become aware that does not cause a material misstatement of the financial statements; however, we will not report such matters directly to the City Council, unless otherwise directed by the City Council. We will inform the appropriate level of management of the City and ensure that the City Council is adequately informed with respect to illegal acts that have been detected or have otherwise come to our attention in the course of our audit, unless the illegal act is clearly inconsequential. If, after determining that the City Council has been adequately informed of an illegal act that has been detected or which has otherwise come to our attention in the course of our audit, we conclude that (1) the illegal act has a material effect on the financial statements; (2) senior management has not taken, and the City Council has not caused senior management to take, timely and appropriate remedial actions with respect to the illegal act; and (3) the failure to take appropriate remedial actions is likely to result in a departure from the standard auditors' report or warrant our resignation from the audit engagement, we will directly report our conclusions to the City Council and take such actions as are required by state or federal law to report such matters to funding agencies and appropriate legal authorities. We will also report directly to the City's management and the City Council matters coming to our attention during the course of our audit that we believe are reportable conditions. Reportable conditions are significant deficiencies in the design or operation of internal control that could adversely affect the City's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. The Citv Manager and Members of the City Council City of Brooklyn Center November 16, 1998 Page 6 In addition, we will communicate to the City Council certain other matters relating to the conduct of our audit, including, when applicable: • Our responsibility as auditors under generally accepted auditing standards, Government Auditing Standards, and OMB Circular A -133 • Significant accounting policies • Management judgments and accounting estimates • Significant audit adjustments (recorded and unrecorded) • Other information in documents containing audited financial statements • Disagreements with management • • Consultation by management with other accountants on significant matters • Difficulties encountered in performing the audit • Major issues discussed with management prior to our retention as auditors We may also have other comments for management on matters we have observed and possible ways to improve the efficiency of the City's operations or other recommendations concerning internal control. With rezp— co these other communications, it is our practice to discuss all comments, if appropriate, with the level of management responsible for the matters prior to their communication to senior management and /or the City Council. Access to Working Papers by Regulators: In accordance with the requirements of Government Auditing Standards and of the Single Audit Act Amendments of 1996, we are required to provide access to our working papers and photocopies thereof to a federal agency or the Comptroller General of the United States upon their request for their regulatory oversight purposes. If such a request is made, we will inform you prior to providing such access. The working papers for this engagement are the property of Deloitte & Touche LLP and constitute confidential information. Access to the requested working papers will be provided to representatives of the United States General Accounting Office or other appropriate government audit staffs under the supervision of Deloitte & Touche LLP audit personnel and at a location designated by our firm. If photocopies are requested, we will mark all information as confidential and maintain control over the duplication of all information. All professional and administrative services relating to such access (including photocopying) will be charged as an additional expense to the engagement. The working papers relating The City Manager and Members . of the City Council City of Brooklyn Center November 16, 1998 Page 7 to this audit will be retained by us for a minimum of three years from the date of the reports issued, or such Ionger period as may be required to satisfy legal and administrative requirements. Professional Fees: Our fees for these services will be based on the actual time spent at our standard hourly rates, plus travel and other out -of- pocket costs (e.g., report production, typing, and postage). Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. Based on our proposal dated October 5, 1997, our estimated fees are as follows: City's financial report $ 24,500 Single audit under OMB Circular A -133 3,675 $ 28,175 This estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. We appreciate the opportunity to be of service to the City of Brooklyn Center. If you have any questions, please let us know. We have attached our latest peer review report for your information. If the above terms are acceptable to the City of Brooklyn Center and the services outlined are in accordance with your understanding, please sign the enclosed copy of this letter in the space provided and return it to us. Yours truly, Accepted and agreed to by the City of Brooklyn Center by: Signature Title Date H 1 ERNST & YOUNG LLP . 787 Seventh Avenue s Phone: 312 773 3000 New York, New York 10019 Deloitte & Touche LLP We have reviewed the system of quality control for the accounting anc�auditing practice of Deloitte & Touche LLP (the Firm) in effect for the year ended March 31, 1996. Our review was conducted in conformity with standards for peer reviews promulgated by the Peer Review Committee of the SEC Practice Section of the AICPA Division for CPA Firms (the Section). We tested compliance with the Firm's quality control policies and procedures at the Firm's National office and at selected practice offices in the United States and with the membership requirements of the Section to the extent we considered appropriate. These tests included the application of the Firm's policies and procedures on selected accounting and auditing engagements. We tested the supervision and control of portions of engagements performed outside the United States. In performing our review, we have given consideration to the general characteristics of a system of quality control as described in quality control standards issued by the AICPA. Such a system should be appropriately comprehensive and suitably designed in relation to the firm's organizational structure, its policies, and the nature of its practice. Variance in individual performance can affect the degree of compliance with a firm's prescribed quality control policies and procedures. Therefore, adherence to all policies and procedures in every case may not be ossible. As is customary in a P eer review, we are issuin g a letter under this date that sets forth comments relating to certain policies and procedures or compliance with them. These matters were not considered to be of sufficient significance to affect the opinion expressed in this report. In our opinion, the system of quality control for the accounting and auditing practice of Deloitte & Touche LLP in effect for the year ended March 31, 1996 met the objectives of quality control standards established by the AICPA, and was being complied with during the year then ended to provide the Firm with reasonable assurance of conformin g with professional standards. Also, in our opinion, the Firm was in conformity with the membership requirements of the Section in all material respects. LL P New York, New York November 25, 1996 Ernst & Young LLP is a member or Ernst & Young International. Ltd. City Council Agenda Item No. 7a • • MEMO To: Michael J. McCauley, City Manager From: Ronald A. Warren, Planning and Zoning Special is��' Subject: City Council Consideration Item - Planning Commission Application No. 98021 Date: November 18, 1998 On the November 23, 1998 City Council Agenda is Planning Commission Application No. 98021 submitted by William R. Stoner, Stoner and Associates requesting Rezoning from C -2 (Commerce) to C -1 (Service/ Office) for the property located at 5001 Drew Avenue North. Attached for your review are copies of the Planning Commission Information Sheet for Planning Commission Application No. 98021 and also an area map showing the location of the property under consideration, the Planning Commission minutes relating to the Commission's consideration of this matter and other supporting documents. This matter was considered by the Planning Commission at their November 12, 1998, meeting and was recommended for approval through Planning Commission Resolution No. 98 -05. It is recommended that the City Council, following consideration of this matter, approve the application. A resolution approving the application is offered for the City Council's consideration. Application Filed on 9 -17 -98 City Council Action Should Be Taken By 11 -16 -98 (60 Days) (Applicant Waived 60 Days) Planning Commission Information Sheet Application No. 98021 Applicant: William R. Stoner Location: 5001 Drew Avenue North Request: Rezoning The applicant, Mr. William R. Stoner, requests approval to rezone from C -2 (Commerce) to C -1 (Service /Office) the parcel of land addressed as 5001 Drew Avenue North. The land in question is currently occupied by a 1,605 sq. ft. building which has been utilized by a variety of uses since it was converted from a gas station to a restaurant in 1979 and a 1,512 sq. ft. garage /storage building. The property is located at the northwest corner of Drew and 50th Avenues North. It is bounded on the north by R -1 zoned land; on the east by Drew Avenue with R -5 zoned property on the opposite side of Drew (the entrance and parking lot for the Twin Lakes Manor Apartments); on the south by 50th Avenue with I -2 zoned property on the opposite side of the street; and on the west by R -4 zoned land containing a four plea addressed as 3616 50th Avenue North. The reason the applicant is pursuing this downzoning of the property is to limit the allowable commercial uses of the land to strictly service /office uses which would allow him to make an expansion of the building and reduce the buffer zone required for general commerce uses. The property, as previously indicated, has been utilized in a variety of ways since it was converted from a gas station to a restaurant. Under the current zoning it is allowed to be utilized by any permitted use in the C -2 zone which includes retail sales, restaurants (provided they do not offer live entertainment or are not a convenience food restaurant or a drive -in restaurant), all service /office uses, various repair /service uses, educational uses and a variety of special uses. The rezoning, if approved, would limit the commercial uses to the service /office uses allowed in the C -1 zoning district. Attached for the Commission's review is a copy of Section 35 -32 Subdivisions 1 thru 3, listing the allowable uses in the C -2 zoning district and Section 35 -320, Subdivisions 1 thru 3, listing the allowable uses in the C -1 zoning district. Both of these sections are offered for the Commission's review to compare and contrast the allowable uses in the particular zoning districts. GUIDELINES FOR EVALUATING REZONINGS. All rezoning applications are reviewed in light of the rezoning evaluation policy and review 11 -12 -98 10 -15 -98 Page 1 guidelines contained in Section 35-M8 of the Citv's zoning ordinance (attached). The applicant has submitted a letter (also attached) in which he comments on each of the guidelines. The following is a listing of the guideline, the applicant's comments and the staff response to each of the guidelines: A. Is there a clear and public need and benefit? The applicant notes that the rezoning will benefit the public, since the C -1 classification is more directed for an office structure. This also exhibits a less intense, less intrusive, use of the property. He notes that the current zoning calls for C -2, which affords a wider range of business, commercial and retail usage. He also notes that it is his intent to rezone the property to use the property solely as an office structure. The staff sees the downzoning of the property to be a public benefit by limiting the uses of the property to the less intense commercial uses authorized in a C -1 zone. The property could not be contemplated in the future for retail uses, various repair /service uses, restaurant uses and a variety of other uses that may not be considered as compatible, particularly with the R -1 zoned property to the north. B. Is the proposed zoning consistent with and compatible with surrounding land use classifications? The applicant notes that the downgrading of the zone classification for his property is .- P P Y not only compatible but would be more consistent with the neighboring residential properties. The staff would agree with this statement noting that the downzoning does allow or restrict, if you will, the uses to a less intense commercial utilization of the property. This is not to say that C -2 uses cannot be property located adjacent to residential zoned property, but the C -1 zoning does allow for less intense commecial utilization of the property and may be considered more compatible. C. Can all permitted uses in the proposed zoning district be contemplated for development of the subject property? The applicant comments that the rezoning request is limited to his property, which is currently being used as an office structure. He states he will not change the type of business on this property. 11 -12 -98 10 -15-98 Page 2 The staff would comment that all of the uses in the propsoed C -1 zoning district can be contemplated for this property. In fact, some of the uses allowed under the existing C -2 zone cannot be allowed to abut R -1 zoned property. In our opinion, this is a more compatible zoning designation given this particular situation and the size of the property under consideration. D. Have there been substantial physical or zoning classification changes in the area since the subject property was zoned? The applicant notes that the property was completely remodeled/updated in 1994 by the previous owner. The remodeling of the building, he believes, enhanced both the appearance and functionality of the buildings and surrounding landscape. He notes that the property has two separate buildings apart from one another; an office building and a garage. He notes his plan is to connect the two buildings making a more efficient use of the structure. He states that the garage will remain as a garage for storage. The project will require moving the existing parking spaces to the rear of the structure and he has provided a sketch drawing of his proposal showing a connection of the two buildings and the appropriate amount of parking spaces. He adds that the will continue to be an office use with small storage. use of the building There have been no real physical or zoning classification changes in this area since the subject property was zoned C -2 which goes back to the 1960's at least. The changes that have been made to the building by the previous owner are believed to be appropriate and compatible. I believe the City has long felt that a less intense commercial utilization of this property was in the best interests of the neighborhood. However, in 1979 when the then applicant proposed to convert the gas station to a restaurant, there was no real zoning reason for the City to deny this conversion given the fact that the applicant could comply with all of the requirements of the C -2 zone for such a use. A number of different uses of the property have taken place over the years and, as mentioned previously, it has long been felt that it would be best if a service /office zoning designation and utilization of the property could be instituted. This, for the most part, depended upon the owner of the property seeing the wisdom of limiting the utilization of the property to only service "office uses. E. In the case of city initiated rezoning proposals, is there a broad public purpose evident? Not applicable. F. Will the subject property bear fully the ordinance development restrictions for 11 -12 -98 10 -15 -98 Page 3 the proposed zoning districts? The applicant notes that it is his full intention to comply with all zoning ordinance requirements as adopted and enforced by the City of Brooklyn Center. The rezoning of the property to a C -1 zoning designation will allow for more utilization of the property because the buffer requirements between an R -1 zoned parcel and C -2 zoned property would be reduced from a 35 ft. requirement to a 15 ft. buffer requirement where there is C -1 abutment. This change would allow the applicant to expand parking for the service /office use proposed about 20 ft. closer to the north property line. It still would require screening of the parking lot but this would allow the ability to expand the site so that additional service /office space could be provided. As the applicant has noted, he wishes to connect the two buildings on the site with an approximate 1,500 sq. ft. expansion, which would be for a service /office use. If the proposed rezoning is approved, the applicant will need to go through a site and building plan process in order to accomplish the expansion he proposes. It may be worthwhile to bring along a site and building plan application if the Planning Commission feels the rezoning is appropriate. G. Is the subject property generally unsuited for uses permitted in the present zoning district, with respect to size, configuration, topography or location? The applicant notes that the C -1 zoning classification is more consistent with the type of business that he operates and notes that the structure has been remodeled to accommodate . an office. He believes the C -2 zoning classification is, therefore, unnecessary. The staff generally beleives that the C -2 utilization of this particular property is probably not appropriate. The C -1 or service /office utilization is a better use of the property, given the surrounding land uses. The C -1 rezoning of the property will rule out the more intense and perhaps less desireable commercial uses allowed in the C -2 zoning district. H. Will a rezoning result in the expansion of a zoning district, warranted by: 1. Comprehensive Planning; 2. The lack of developable land in the proposed zoning district; or 3. The best interests of the community? The applicant states that the proposed rezoning downgrades the current zoning classification making the property less intrusive to the neighboring residential area. 11 -12 -98 10 -15 -98 Paae 4 The staff does not feel that this minor rezoning or downzoning of the land would be inconsistent with the City's Comprehensive Plan. The Comprehensive Plan really makes no specific mention of the subject property. As far as the lack of developable land in the proposed zoning district, there is a lack of developable land in most zoning districts in the city. In this case, the land would not result in new development but some additional redevelopment of the property, which would be allowed if the zoning change is made. Limiting the commercial utilization to a less intrusive service /office use is considered to be in the best interests of the community. I. Does the proposal demonstrate merit beyond the interests of an owner or owners of an individual parcel? The applicant notes that he purchased the property for use as a manufacturer's representative, which is a small business with less than five employees and regular business hours of 8 00 a.m. to 5:00 p.m. Monday thru Friday. He notes that he intends to maintain this type of operation. The staff believes that the business being run by the applicant, and the possible expansion should not be intrusive to the neighboring properties. We also believe that the limiting of commercial utilization of the property is in the best interests of the community as a whole and for this reason believe that the proposal does demonstrate merit beyond just the interests of the owner. The rezoning evaluation policy and reivew guidelines note that the city policy is that zoning classifications must be consistent with the Comprehensive Plan and rezoning proposals must not constitute "spot zoning ", which is defined as a zoning decision which discrimminates in favor of a particular land owner and does not relate to the Comprehensive Plan or accepted planning principles. We find no significant conflicts with this policy as noted above in our review of the guidelines for rezoning. Even though this is a small parcel it does not constitute "spot zoning" as long as it relates to the .Comprehensive Plan or accepted planning principles. As mentioned previously, the Comprehensive Plan really does not address this particular property, but good planning principles do attempt to protect residentially zoned property from the more intense commercial and industrially used properties which may be surrounding it. We find no conflict with this proposal in that regard. PROCEDURE It is the City's practice with respect to rezoning applications for the Planning Commission to open a public hearing, take comments and then table the application and refer it to the relevant Neighborhood Advisory Group for review and comment. In this case, the rezoning would be 11 -12 -98 10 -15 -98 Page referred to the Southwest Nei - hborhood Advisory Group for additional review and comment. is We will send notices to the members of the Neighborhood Advisory Group and try to establish a time for the neighborhood group to meet so that this matter can be moved along in an expeditious manner. It may, however, be encessary for the applicant to consider waiving the 60 day limitation on consideration of a zoning matter which is imposed upon us by the State Legislature so that the proper input can be gained. Discussion along this long between the Commission and the applicant would be appropriate. It is recommended that the matter be referred to the Southwest Neighborhood Advisory Group for additional review and comment. s 11 -12 -98 10 -1 -98 Page 6 All o . f . I P � • 1 LA r s,T„ 1 A �BLR(QuEST 1� C1 y j�"�t 56TH. A ''i '% >- f �, it �( �: ---�►a / cn ;;;;'•: !; ,, y,. ; „�,, , L by ; �•--�' 55TH. A YE - . + ; ' 54TH. AYE. 53RD. PLI 9 2 IX P A VE. N.� (jc� -r •:� PLANNING COi YIMISSION APPtICATION NO. 98021 R� I i I I I l7 • �5is? —� r / ' S N. I / 12 50TH AVE. N. 49TH AYEj MIDDLE / N TWIN LAKE ; (IAxE2RE`2E AYE. N. t , C 4 T1 AVE. N. LNF O K' �' AYE. -+ AVE. . 4�H AVE. i L 46 1. �� 46TH AVE. CITY O� GBBI DA - J r I nn : --1 0-\IER &ASSOCIATES, INC. rcpresenting iii anufacturcrs world%vicle September 15, 1998 City of Brooklyn Center Planing Commission 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 RE: Application to Rezone Property Located at 5001 Drew Avenue North LEGAL DESCRIPTION: "The North 150 feet of the South 183 feet of the East 165 feet of the Northwest 1 /4 of the Southwest 11 /4 of the Northeast' /4 of Section 10, Township 118 North, Range 21, except the East 30 feet thereof, Hennepin County, Minnesota. Dear Planning Commission Members: Attached is application for request to rezone a property I recently acquired, located at 5001 Drew Avenue North, in Brooklyn Center. I am requesting that the zoning class be downgraded from the current C2 �I: lassification to a Cl classification. With consideration to Brooklyn Center's comprehensive planning program, I submit the following comments to issues outlined in the 'guidelines' portion of the'REZONING EVALUATION POLICY AND REVIEW GUIDELINES' brochure. A. The rezoning will benefit the public, since a C1 classification is more directed for an office structure. This also exhibits a less intense, less intrusive, use of the property is intended. Current Zoning calls for a C2, which affords a wider range of business, commercial and retail usage. My intent is to rezone the property, as I intend to use the property solely as an office structure. B. The downgrading of the Zone classification on my property is not only compatible but would be more consistent with the neighboring residential properties. C. The rezoning request is limited to the property, which is currently being used as an office structure. I will not change the type of business on this property. D. This property was completely remodeled/updated in 1994 by the previous owner. The remodeling of the buildings enhanced both the appearance and functionality of the buildings and surrounding landscape. At this time, the property has two separate buildings apart from one another; an office building and a garage. My plan is to connect the two buildings, making a more efficient use of the structure. The garage will remain as a garage for storage. This project will require moving the existing parking spaces to the rear of the structures. Attached is a drawing of the lot, as it now exists, and drawing of the proposed connection of the two buildings S with appropriate number of parking spaces. The two buildings will continue serving as an office structure and mall storage. E. Not- Applicable (612) 525 -8067 - (612) 546 -0173 * fax: (612) 593 -1967 01 Decatur Avenue North, Suite 201 • Minneapolis, %1N 55427 It is my full intention to comply with all zoning ordinance requirements as adopted and enforced by the Citv Brooklyn Center. G. Current Zoning is not consistent ns stent with the type of business I a operating m o ratan on this proper YP Zonin P � P P Y classification C 1 is more consistent with the type of business the structure has been remodeled to accommodate - Office. Therefore, it is unnecessary to retain the C2 classification. H. As stated above, the proposed rezoning downgrades the current zoning classification, making the property less intrusive to the neighboring residential area. I. As stated above, I recently purchased the above property for use in my business as a manufacturer's rep. I am a small business owner, with less than five employees. Regular business hours are 8 :00 am - 5:00 PM, Monday - Friday. I intend to maintain this protocol. Thank you for your time in reviewing my request. I will attend the October 15 Planning Commission Meeting when this item is presented. In the meantime, please feel free to contact me if you have any questions or concerns. I can be reached, in my office, at 525 -S067. Best Regards, V - William R. Stoner President STONER & ASSOCIATES, INC. Section 35 -208 REZONING EVALUATION POLICY AND REVIEW GUIDELINES. The City Council finds that effective maintenance of the comprehensive planning and land use classifications is enhanced through uniform and equitable evaluation of periodic proposed changes to this Zoning Ordinance; and for this purpose, by the adoption of Resolution No. 77 -167, the City Council has established a rezoning evaluation policy and review guidelines. 2. Policy It is the policy of the City that: A. Zoning classifications must be consistent with the Comprehensive Plan, and, B. Rezoning proposals will not constitute "spot zoning ", defined as a zoning decision, which discriminates in favor of a particular landowner and does not relate to the Comprehensive Plan or to accepted planning principles. 3. Procedure Each rezoning proposal will be considered on its merits, measured against the above policy and against these guidelines, which may be weighed collectively or individually as deemed by the City. .,J 4. Guidelinga - -' A. Is there a clear and public need or benefit? B. Is the proposed zoning consistent with and compatible with surrounding land use classifications? C. Can permitted uses in the proposed zoning district be contemplated for development of the subject property? D. Have there been substantial physical or zoning classification changes in the area since the subject property was zoned? E. In the case of City - initiated rezoning proposals, is there a broad public purpose evident? F. Will the subject property bear fully the ordinance development restrictions for the proposed zoning districts? G. Is the subject property generally unsuited for uses permitted in the present zoning district, with respect to size, configuration, topography or location? H. Will the rezoning result in the expansion of a zoning district, warranted by: 1. Comprehensive planning; 2. The lack of developable land in the proposed zoning district; or, 3. The best interests of the community? I. Does the proposal demonstrate merit beyond the interests of an owner or owners of an individual parcel? Section 35 -208 Revised 2 -95 E U H 5a.�� I o IG L ,r45S i + t 1 TH Iry �y : NG�TN I :ZONINt3 INFo(3yJATtotj ZoNW6 Piss I I s' M r s- �F�lt = 31 ( S • S J'+= 1 ( 2,5 I �� Yesll bUtE = o _ I tl iO is c¢- �t7T - ct m ante 1Cvm t 2 �1- y 142 Sr- Co t(oz �• � Y1 ri°t'� \ fact CT ( z S Q = \ 1 F I --' tX7 N 2 69 ' rG Sum o 5 10 to 3. Specia_ (t fists a Accessory off -site parking not located on the same property with the principal use, subject to the provisions of Section 35-701. b. All of the special uses set forth in Section 35 -320 shall be allowed by special use permit in the C 1 A district. Section 35 -322., C2 CUMIMERCE DISTRICT. I. Permitted Uses a. The retail sale of food. b. Eating establishments, provided they do not offer live entertainment and further provided that the category does not permit drive -in eating places and convenience- food restaurants. C. The following uses: 1. The retail sale of heating and plumbing equipment, paint, glass, and wallpaper, electrical supplies, and building supplies. 2. The retail sale of tires, batteries and automobile accessories and marine craft accessories. 3. The retail sales of apparel and related accessories. 4. The retail sale of furniture, home furnishings and related equipment. 5. The retail sale of miscellaneous items such as the following: Drugs and proprietary items Liquors Antiques and secondhand merchandise Books and stationery Garden supplies Jew Flowers and floral accessories Cigars and cigarettes Newspapers and magazines Cameras and photographic supplies Gifts, novelties and souvenirs �� -32 Pets Optical goods Sporting goods and bicycles d. Service /office uses described in Subsection (b) through (u) and Subsection (w) of Section 35 -320. e. The following repair /service uses: I. Electrical repair service shops. 2. Household appliances, electrical supplies, heating and plumbing equipment. 3. Radio and television repair service shops. 4. Watch, clock and jewelry repair service shops. 5. Reupholstery and furniture repair shops. 6. Laundering, dry cleaning and dyeing. %. Equipment rental and leasing services. f. The following medical and health uses: 1. Hospitals, not including animal hospitals. 2. Medical laboratories. 3. Dental laboratories. �. Nursing care homes, (at not more than 50 beds per acre), provided that these institutions shall where required by state law, or regulation or by municipal ordinance, be licensed by the appropriate state or municipal authority. g The following contract/construction uses: I . Building construction contractors' offices. 2. Plumbing, heating and air conditioning contractors' offices. �. Painting, paper hanging and decorating contractors' offices. 35 -33 4. Masonry, stone work, the setting and plasterin(, contractors' offices. 5. Carpentering and wood flooring contractors' offices. 6. Roofing and sheet metal contractors' offices. 7. Concrete contractors' offices. S. Water well drilling contractors' offices. h. Educational uses. i. Accessory uses, incidental to the foregoing principal uses when located on the same property with the use to which it is accessory. Such accessory uses to include but not be restricted to the following: 1. Offstreet parking and offstreet loading. 2. Signs as permitted in the Brooklyn Center Sian Ordinance. 3. Outside display and sale of merchandise provided that an administrative permit is first obtained pursuant to Section 35 -300 of these ordinances. j. Other uses similar in nature to the aforementioned uses, as determined by the City Council. k. Drop -in child care centers licensed by the Nfinnesota Department of Public Welfare pursuant to a valid license application, provided that a copy of said license and application shall be submitted annually to the City. 2. Scecial Requirements a. See Section 35-412 of these ordinances. 3. Sceciallises a. Gasoline service stations (see Section 35- =11=1), motor vehicle repair and auto washes provided they do not abut an RI, R2, or R3 district, including abutment at a street line; trailer rental in conjunction with these uses, provided that there is adequate trailer parking space. 3 ; -34 1 b. The sale or vending at gasoline service stations of items other than fuels, lubricants or automotive parts and accessories (and other than the vending of soft drinks, candy, cigarettes and other incidental items for the convenience of customers within the principal building) provided adequate parking is available consistent with the Section 35-704, 2 (b) and 2 (c). C. Drive -in eating establishments and convenience -food restaurants provided they do not abut an RI, R2, or R3 district including abutment at a street line. (However, convenience food restaurants without drive -up facilities and located within the principal structure of a shopping center of over 250,000 sq. ft. of gross floor area shall be considered a permitted use.) d. Eating establishments offering live entertainment; recreation and amusement places such as motion picture theaters and legitimate theater; sports arenas, bowling alleys, skating rinks, and gymnasiums, all provided they do not abut an R1, R2, or R3 district, including abutment at a street line. e. The sale of motor vehicles at retail. f. The out -of -door display and sale of marine craft at retail. Cr. Transient lodging. h. Animal hospitals. i. Public transportation terminals (excluding truck terminals). j. Clubrooms and lodges. k. Accessory off -site parking not located on the same property with the principal use, subject to the provisions of Section 35 -701. I. Sauna establishments and massage establishments, provided they do not abut any residential (RI through R7) district, including abutment at a street line. m. School bus garage facilities provided all storage, including vehicles, and minor servicing and minor repair shall be conducted wholly withinn an enclosed building and further provided it does not abut any residential (R1 through R7) districts, including abutment at a street line. n. Amusement centers provided the property on which the amusement center is to be located is not within 150 feet of any residentially zoned (R1 through R7) property. 35 -35 -; o. Automobile and truck rental and leasing. lie p. Tennis clubs, racket and swvim clubs and other athletic clubs, health spas and suntan studios. q. Group day care facilities provided developments, in each specific case, are demonstrated to be: I. Compatible with existing adjacent Iand uses as well as with those uses permitted in the C2 district generally. 2. Complementary to existing adjacent Iand uses as well as with those uses permitted in the C2 district generally. �. Of comparable intensity to permitted C2 district land uses with respect to activity levels. 4. Planned and designed to assure that generated traffic will be within the capacity of available public facilities and will not have an adverse impact P t upon those P facilities the immediate e zate neignborhood, or the community. 5. Traffic generated by other uses on the site will not pose a danger to children served by the day care use. Furthermore, group day care facilities shall be subject to the special requirements set forth in Section 35 -=112. 3 3 0 3. Playground equipment and installations including swimming pools and tennis courts. 4. Signs as permitted in the Brooklyn Center Sign Ordinance. 5. A real estate office for the purpose of leasing or selling apartment units within the development in which it is located. 6. Home occupations not to include special home occupations as defined in Section 35 -900. e. Licensed residential programs with a licensed capacity of seven to 16 adults or children required to be permitted by M.S. 245A.11, Subd. 3 and N1. S. =162.357, Subd. s. f. Licensed nonresidential programs with a licensed capacity of 13 to 16 persons required to be permitted by M.S. 245A.14, Subd. 2. G. Licensed day care facility serving from 13 through 16 persons required to be permitted by M.S. 462.357, Subd. S. 2. Special Requirements a. See Section 35 -410 of these ordinances. Section 35 -320. Cl SERVICE /OFFICE DISTRICT. I. Permitted Uses The following service /office uses are permitted in the C I district, provided that the height of each establishment or building shall not exceed three stories, or in the event that a basement is proposed, three stories plus basement: a. Nursing care homes, (at not more than 50 beds per acre), provided, however, that such institutions shall, where required by state law, or regulations of the licensing authority, be licensed by the appropriate state or municipal authority. b. Finance, insurance, real estate and investment office. C. tiledical. dental, osteopathic, chiropractic and optometric offices. d. Legal office, engineering and architectural offices, educational and scientific research offices (excluding laboratory facilities), accounting, auditing and bookkeeping offices, urban planning agency offices. e. Religious uses, welfare and charitable uses libraries and art galleries. 1 nes. f. Beauty and barber services. Cr. Funeral and crematory services. h. Photographic services. i. Apparel repair, alteration and cleaning pickup stations, shoe repair. j. Advertising offices, provided that the fabrication of signs shall not be a permitted use. k. Consumer and mercantile credit reporting services office, adjustment and collection service offices. I. Duplicating, mailing and stenographic service offices. m. Employment agency offices. n. Business and management consultant offices. o. Detective and protective agency offices. p. Contractor's offices. q. Governmental offices. r. Business association. professional membership organizations. labor unions, civic, social and fraternal association offices. S. Accessory uses incidental to the foregoing principal uses when located on the same property with the use to which it is accessory. Such accessory uses to include but not be restricted to the folloNkina: 1. Offstreet parking and offstreet loading. ?. Signs as permitted in the Brooklyn Center Sian Ordinanc. • 3 - ,9 I The compounding, dispensing or sale (at retail) of drugs, prescription items, patent or proprietary medicines, sick room supplies, prosthetic devices or items relating to anv of the foregoing when conducted in the building occupied primarily by medical, dental, osteopathic, chiropractic or optometric offices. 4. Retail food shops, gift shops, book and stationery shops, tobacco shops, accessory eating establishments, sale and service of office supply equipment, newsstands and similar accessory retail shops within multistory office buildings over 40,000 sq. ft. in gross floor area, provided: that there is no associated signery visible from the exterior of the building; there is no carry -out or delivery of food from the lot; and the total floor area of all such shops within a building shall not exceed 10% of the total gross floor area of the building. t. Other uses similar in nature to the aforementioned uses as determined by the City Council. U. Financial institutions including, but not limited to, full- service banks and savings and loan associations. V. Drop -in child care centers licensed by the Minnesota Department of Public Welfare pursuant to a valid license application, provided that a copy of said license and application shall be submitted annually to the Citv. w. Leasing offices, provided there is no storage or display of products on the use site. ?. Special Requirements a. See Section 35 -411 of these ordinances. 3 ; - �. Sbeeial Uses i a. Accessory off -site parking not located on the same property with the principal use, subject to the provisions of Section 35 -701. b. Group day care facilities provided that such developments, in each specific case, are demonstrated to be: I. Compatible with existing adjacent land uses as well as with those uses permitted in the C 1 district generally. 2. Complementary to existing adjacent land uses as well as to those uses permitted in the C 1 district generally. 3. Of comparable intensity to permitted C 1 district land uses with respect to activity levels. 4. Planned and designed to assure that generated traffic will be within the capacity of available public facilities and will not have an adverse impact upon those facilities, the immediate neighborhood, or the community. 5. Traffic generated by other uses on the site will not pose a danger to children served by the day care use. and further provided that the special requirements set forth in Section 35 -411 are adhered to. C. Instructional uses for art, music, photography, decorating, dancing and the like and studios for like activity. Section 35 -321, CIA SERVICE /OFFICE DISTRICT. 1. Permitted Uses (No height limitation) a. All of the permitted uses set forth in Section 35 -320 shall be permitted in a building or establishment in the C l A district. 2. Snecial Requirements a. See Section 35 -411 of these ordinances. 35 -31 Member introduced the fallowing resolution and moved its adoption: PLANNING COMMISSION RESOLUTION NO. 98 -05 RESOLUTION REGARDING RECOMMENDED DISPOSITION OF PLANNING COMMISSION APPLICATION NO. 98021 SUBMITTED BY WILLIAM R. STONER WHEREAS, Planning Commission Application No. 98021 submitted by William R. Stoner proposes rezoning from C -2 (Commerce) to C -1 (Service /Office) of the land located at 5001 Drew Avenue North; and WHEREAS, the Planning Commission held a duly called public hearing on November 12, 1998 when a staff report and testimony regarding the rezoning request were taken; and WHEREAS, the Planning Commission requested review and comment from the Southwest Neighborhood Advisory Group; and WHEREAS, the Planning Commission considered the rezoning request in light of all testimony received, the guidelines for evaluating rezonings contained in Section 35 -208 of the City's Zoning Ordinance, and in light of the recommendations of the City's Comprehensive Plan. NOW, THEREFORE, BE IT RESOLVED by the Brooklyn Center Planning Advisory Commission to recommend to the City Council that Application No. 98021 submitted by William R. Stoner be approved in consideration of the following; 1. The proposed rezoning to the C -1 zoning designation is considered to be a public benefit by limiting the uses of the property to a less intense commercial use which is considered to be more compatible with surrounding property, particularly the R -1 zoned property to the north. 2. All permitted uses in the proposed C -1 zoning district can be contemplated for development or redevelopment on the subject property. 3. The subject property will bear fully the ordinance development restrictions for the C -1 zoning district. 4. The property in question is considered to be more suitable for a C -1 rather than a C -2 zoning designation given the surrounding land uses. The C -1 rezoning will rule out more intense and perhaps less desirable commercial uses which are otherwise allowed int he C -2 district. 5. Limiting the commercial utilization of this property to a less intense, less intrusive service /office zoning designation is considered to be in the best interests of the community. 6. In light of the above, it is believed that the proposed rezoning is consistent with the guidelines for evaluating rezonings contained in Section 35 -208 of the Zoning Ordinance and is, therefore, in the best interests of the community. ate Chair 'TEST: Secretary The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION REGARDING DISPOSITION OF PLANNING COMMISSION APPLICATION NO. 98021 SUBMITTED BY WILLIAM R. STONER WHEREAS, Planning Commission Application No. 98021 submitted by William R. Stoner proposes rezoning from C -2 (Commerce) to C -1 (Service /Office) of the land located at 5001 Drew Avenue North; and WHEREAS, the Planning Commission held a duly called public hearing on November 12, 1998 when a staff report and testimony regarding the rezoning request were taken; and WHEREAS, the Planning Commission requested review and comment from the Southwest Neighborhood Advisory Group; and WHEREAS, the Planning Commission recommended approval of Application No. 98021 by adopting Planning Commission Resolution No. 98 -05 on November 12, 1998; and WHEREAS, the City Council considered Application No. 98021 at its November 23, 1998 meeting; and WHEREAS, the City Council has considered the rezoning request in light of all testimony received, the guidelines for evaluating rezonings contained in Section 35 -208 of the City's Zoning Ordinance, the recommendations of the City's Comprehensive Plan, and the Planning Commission's recommendation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that Application No. 98021 submitted by William R. Stoner be approved in consideration of the following; 1. The proposed rezoning to the C -1 zoning designation is considered to be a public benefit by limiting the uses of the property to a less intense commercial use which is considered to be more compatible with surrounding property, particularly the R -1 zoned property to the north. 2. All permitted uses in the proposed C -1 zoning district can be contemplated for development or redevelopment on the subject property. City Council Resolution No. • 3. The subject property ill bear full the ordinance development restrictions for the Y Y P C -1 zoning district. 4. The property in question is considered to be more suitable for a C -1 rather than a C -2 zoning designation given the surrounding land uses. The C -1 rezoning will rule out more intense and perhaps less desirable commercial uses which are otherwise allowed int he C -2 district. 5. Limitinor the commercial utilization of this ro ert to a less intense, less intrusive P P Y s service /office zoning designation is considered to be in the best interests of the community. 6. In light of the above, it is believed that the proposed rezoning is consistent with the guidelines for evaluating rezonings contained in Section 35 -208 of the Zoning Ordinance and is, therefore, in the best interests of the community. i Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. i i CITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the day of , 1998, at p.m. or as soon thereafter as the matter may be heard at the City Hall, 6301 Shingle Creek Parkway, to consider an Ordinance Amending Chapter 35 of the City Ordinances Regarding the Zoning Classification of Certain Land (5001 Drew Avenue North). Auxiliary aids for persons with disabilities are available upon request at least 96 hours in advance. Please contact the City Clerk at 569 -3300 to make arrangements. ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 35 OF THE CITY ORDINANCES REGARDING THE ZONING CLASSIFICATION OF CERTAIN LAND (5001 DREW AVENUE NORTH). THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS FOLLOWS: Section 1. Chapter 35 of the City Ordinances of the City of Brooklyn Center is Hereby Amended in the Following Manner: Section 35 -1170. SERVICE /OFFICE DISTRICT (Cl). The following properties are hereby established as being within the (Cl) Service /Office District zoning classification: The west 135 feet of the east 165 feet of the north 150 feet of the south 183 feet of the northwest 1/4 of the southwest 1/4 of the northeast 1/4 of Section 10. Section 35 -1190. COMMERCE DISTRICT (C2). The following properties are hereby established as being within the (C2) Commerce zoning classification: T 7 c f eet f �c & - ra lh�, iT4'�,3t 'i iTJ _rte- « Cast 1C? IIoxtn l:J of the ilvrtliJv iiu - ah'&A i . Section 2. This ordinance shall become effective after adoption and upon thirty days following its legal publication. Adopted this day of , 1998. 1 Mayor ATTEST: Clerk Date of Publication Effective Date (Strikeouts indicate matter to be deleted, underline indicates new matter.) i 2 City Council Agenda Item No. 7b • • MEMO To: Michael J. McCauley, City Manager From: Ronald A. Warren Planning nd Zoning g oni Q 0 Specia st • Subject: City Council Consideration Item - Planning Commission Application No. 98023 Date: November 18, 1998 On the November 23, 1998 City Council Agenda is Planning Commission Application No. 98023 submitted by Roman Mueller, Speedway SuperAmerica LLC requesting Preliminary Plat A I rov pp al to transfer property from the newly created Regal Road Addition to the Super America site. Attached for your review are copies of the Planning Commission Information Sheet for Planning Commission Application No. 98023 and also an area map showing the location of the property under consideration, a copy of the preliminary plat, the Planning Commission minutes relating to the Commission's consideration of this matter and other supporting documents. • This matter was considered by the Planning Commission at their November 12, 1998 meeting and was recommended for approval. It is recommended that the City Council, following consideration of this matter, approve the application subject to the recommendations of the Planning Commission. Application Filed on 10 -22 -98 • City Council Action Should Be Taken By 12 -21 -98 (60 Days) Planning Commission Information Sheet Application No. 98023 Applicant: Speedway Super America LLC Location: Southwest Quadrant of 66th Avenue North and T. H. 252 Request: Preliminary Plat The applicant, Mr. Roman Mueller, on behalf of Speedway Super America LLC, is seeking preliminary plat approval to transfer property from the newly created Regal Road Addition to the Super America (SA) site located at 6545 West River Road. The purpose of the transfer would be to "square out" the SA site in order to accommodate a proposed car wash expansion (see companion Application No. 98024). The property under consideration is located at the southwest quadrant of 66th Avenue North and T.H. 252. It is surrounded on the north by 66th Avenue; on the east by T.H. 252; on the south by I -694; and on the west by Camden Avenue North. The Super America site is zoned C -2 (Commerce) while the balance of the property is zoned PUD /C -2 (Planned Unit Development/Commerce). The preliminary plat includes Lots 2 and 3, Block 1 of the recently approved Regal Road Development Addition and Lot 1, Block, Super America Addition. Lot 3 of the Regal Road Development Addition is the site for the proposed 20 screen theater approved under the PUD for Centres Group. Lot 2 of the Regal Road Development Addition is a future restaurant site for which no specific plan has yet been approved. The preliminary plat calls for an exchange of an approximate 25 ft. by 320 ft. strip of land to be added to the south portion of the SA site and an approximate 14 ft. by 75 ft. strip of land to be added to the west portion of the SA site. The exchange will result in the creation of a 70,786 sq. ft. (1.625 acre) parcel for SA. The proposed Lot 2 will be 55,917 sq. ft. (1.284 acres) and will remain for future restaurant development while the proposed Lot 3, will be the 5 94,3 18 sq. ft. (13.643 acre) theater site. The proposed plat will be known as Regal Road Development, Second Addition. It should be noted that Centres Group, the developer of the theater site, has not yet filed the plat for Regal Road Development Addition which will have to be accomplished before the subject proposed plat can be filed. The applicants under this application (Super America) are attempting to receive preliminary and final plat approval by the City Council at the same time. • 11 -12 -98 Page 1 The survey information used for the majority of this preliminary plat was that obtained for the • Regal Road Development Addition. The preliminary plat shows the location of utilities and the easements retained for the theater development. These include the vacated 65th Avenue and North Lilac Drive rights -of -way. The preliminary plat shows the drainage and utility easement for the theater's retention pond as well as the 30 ft. wide sanitary sewer easement running between 65th Avenue on the south and 66th Avenue on the north. The balance of the 30 ft. easement should be indicated over that portion of the plat that will be the Super America site (the west property line of the proposed Lot 1). The City Engineer is reviewing the preliminary and final plat applications and may have additional comments. The area of the plat, for the most part, has been subject to Watershed Commission review with the theater PUD. No additional Watershed review will be necessary. A public hearing has been scheduled for this preliminary plat and notice of the Planning Commission's consideration has been published in the Brooklyn Center Sun/Post. RECOMMENDATION The proposed preliminary plat appears to be in order and approval of this application is recommended subject to at least the following conditions: 1. The final plat is subject to review and approval by the City Engineer. • 2. The final plat is subject to the provisions of Chapter 15 of the City Ordinances. 3. Appropriate drainage and utility easements shall be shown over the proposed Lot 1, Block 1, to protect existing sanitary sewer in a manner acceptable to the City Engineer. 4. Appropriate driveway and cross access easements indicating the relationship between the proposed Lots 1 and 2 shall be filed with the final plat for this property. 11 -12 -98 Page 2 14lCEMnH _ 31IY t�� - ' ✓ L - n - i P 6IRARD AVE. N. ° \ G IUD AVE. HFRF I �f Li I ( I I IL FRE1KXt1 AVE. � � � •'� wi�siw N I I IA E1IERSON AVE. � ,`�� r N .14 *3AY E N. • z DUPONT ..- it �_- N '3nY Y UlO0 OOLFAY AVE N- -- y __ \• ' ^` — y 6RYANT AVE. fl CD (T � •N '3AY tpIa0lY, � •� "/`..'\ , r�. 1 �y •N '3AY tt�_ �? > --- --- I C/lIDEN 9R tb. '' CAJdEN AVE. N. NTYM Cra a� ILI - — / / Q'O N ►" --------- _ __ r r r• M r r r I r r r• - WEST rrr r r .rrr•� �..-' RIVER R DALLASl z DAL X '. , RD r r • • r _ WILLOM LA. 1, ~ - -- RIVERD WILLOW A. UE RD. �k �ILLOV LA, S. I .,R VAR + -..... —.�`- CITY M nom. Is�ANO j W `: I " 1 i FRELA47NARYFLAT OF I REGAL ROAD DEVEL OPMENT 2ND ADD /T /ON'�`�""° , ay .e r u•ourtxu. «. ".... r { T rs _ _ ,r• I ... ,. e•.r t, Wert roe Nr[, v.•ur z �� /% --. ._.-- .- \ �� /��� /� /i/ NI�HWAY N�. J,\ , - -- i r ( � \'r ��— STA L �l �� d -vswr —/ \ \ \�O\ ( h�'I''t9��I /�4 i) c. , eo rn n.Y oc t.0 » •s -.ea r.w.. r w r / R ".�SJd ��.t - - yf� -' ?�'�• -�+� :� `� � -- _� � \ ��� +, d'(� ` �. G �1�1J''!1 ,f n. �.. r w: .'r.. »� r•. r...n. ..�, . r..w ..+. .r /./ < Cgu4.SYJ ..�- --- _�..e: ', �����= �ll/IIII��.� ..... . ... ..... ...- «..... " / ny` — __ - — .� �. 73� L `: Itl� •) .w+ .. n.as +r.,c. r ..... a -1 tr.--- ..,^i 37 f : • /)[ • ( _/ 1�.+ --5 =f ^i ---- -j _ !_ - G.. _ -- V . . «.... a aua .e.e ecwv.u. wo w . «., nr,.n I ( »: , JYN' ^_'{� ,� .•., J J' » 'r . f ... ! I I ( / ' v \ \ i":� /^ �• .) n. «.. ._.... r.. n.., ,.»elr... JJJ.J! 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VICINITY MAP � . � �.....�..�.. � nu+..vn ....»•...r..... ,� �� ` /(” E t ! ..».... «. 1 f .1 MEMORANDUM DATE: November 20, 1998 TO: Michael McCauley, City Manager FROM: Scott Brink, City Engineer SUBJECT: Addition to Resolution Approving Final Plat - REGAL ROAD DEVELOPMENT SECOND ADDITION On Friday, November 20, Staff met with representatives of Super America(SA) and discussed the final plat in additional detail. For the purposes of satisfying title administrative details, Super America has requested that additional wording be included in the Resolution. This addition in the attached revised Resolution, provides for the relinquishing of a portion of a platted drainage and utility easement on the initial plat. The easement described is not needed, and therefore not provided under the revised plat (REGAL ROAD DEVELOPMENT SECOND ADDITION) to be considered on November 23. However, SA has requested that the easement also be formally vacated to satisfy their title company. Therefore, the additional wording has been included. Formal vacation of the easement will also require formal processing as required under the City's regulations. An easement vacation will therefore be submitted for a first reading at the December 14, 1998 City Council meeting. Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION APPROVING FINAL PLAT - REGAL ROAD DEVELOPMENT SECOND ADDITION WHEREAS, the Brooklyn Center City Council on November 23, 1998, approved Planning Commission Application No. 98023, providing for Preliminary Plat approval submitted by Speedway Super America LLC; and WHEREAS, the property owner(applicant) has applied for Final Plat Approval as required by the City Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that the plat of REGAL ROAD DEVELOPMENT SECOND ADDITION is hereby approved. subject to the following conditions: 1. The plat REGAL ROAD DEVELOPMENT ADDITION must first be filed and recorded for REGAL ROAD DEVELOPMENT SECOND ADDITION to be valid and legally binding. 2. The applicant shall enter into a standard maintenance and utility agreement with pp ty g the City. 3. Review and Approval of the City Engineer. 4. Property title opinions or legal documentation as required by the City Attorney. 5. Approval of the Final Plat by the Minnesota Department of Transportation. 6. Any further requirements of Hennepin County 7. Provisions of Chapter 15 of the City Ordinances NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Brooklyn Center, Minnesota hereby releases its interest in an underlying drainage and utility easement within Lot 1, REGAL ROAD DEVELOPMENT ADDITION, subject to the same terms and conditions provided above. Said drainage and utility easement described as follows: Commencing at the Southeast corner of Lot 3, REGAL ROAD DEVELOPMENT ADDITION, thence North 4 degrees 58 minutes 20 seconds West a distance of 21.47 feet; thence North 85 degrees 01 minutes 30 seconds East a distance of 320.95 feet; thence southerly along the East line of Lot 1 a distance of 25.00 feet, thence South 85 degrees O1 minutes 30 seconds West a distance of 320.95 feet, thence northerly to the point of beginning, and there terminating. RESOLUTION NO. Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. MEMORANDUM • DATE: November 16, 1998 TO: Michael McCauley, City Manager FROM: Scott Brink, City Engineer `Al" SUBJECT: Resolution Approving Final Plat - REGAL ROAD DEVELOPMENT SECOND ADDITION At the November 23, 1998 City Council meeting, the Council will be considering Preliminary and Final Plat approval for REGAL ROAD DEVELOPMENT SECOND ADDITION. The preliminary plat was approved by the Planning Commission at their November 12, 1998 meeting. On September 28, 1998, the Council approved a resolution approving of the final plat REGAL ROAD DEVELOPMENT ADDITION, with approval contingent upon specific conditions and requirements. One of the conditions was the execution of a Subdivision agreement between the property owner and City. As of this writing, the Subdivision Agreement has not yet been executed, and the plat has not been released for recording. A newly created plat has been submitted to provide for a property transfer between two neighboring parties. The applicant, Speedway Super America LLC is seeking preliminary and • final plat approval to provide for a transfer of property to the Super America property at 6545 West River Road to accommodate a proposed car wash expansion (please refer to Planning Commission Application Nos. 98023 and 98024 included with November 23, 1998 Council agenda). The property transfer from the Regal Theater site parcels to Super America essentially consists of an approximate 25 ft. by 320 ft. strip of land to be added to the south portion of the Super America lot, and an approximate 14 ft. by 75 ft. strip of land to be added to the west side of the Super America property. Consideration of final plat approval at the November 23 meeting will be contingent upon the council granting preliminary plat approval first. In addition, because the plat submitted (REGAL ROAD DEVELOPMENT SECOND ADDITION), is based upon a plat not yet filed and recorded, final plat approval is also contingent upon that initial plat approved in September of 1998 being recorded. It is therefore recommended that the City Council approve the attached resolution providing for final plat approval for REGAL ROAD DEVELOPMENT SECOND ADDITION, contingent upon the conditions described in the resolution. Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION APPROVING FINAL PLAT - REGAL ROAD DEVELOPMENT SECOND ADDITION WHEREAS, the Brooklyn Center City Council on November 23, 1998, approved Planning Commission Application No. 98023 providing for Preliminary Plat r submitted g pp , p g ary approval by Speedway Super America LLC; and WHEREAS, the property owner(applicant) has applied for Final Plat Approval as required by the City Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that the plat of REGAL ROAD DEVELOPMENT SECOND ADDITION is hereby approved subject to the following conditions: 1. The plat REGAL ROAD DEVELOPMENT ADDITION must first be filed and recorded for REGAL ROAD DEVELOPMENT SECOND ADDITION to be valid and legally binding. 2. The applicant shall enter into a standard maintenance and utility agreement with the City. 3. Review and Approval of the City Engineer. PP tY g 4. Property title opinions or legal documentation as required by the City Attorney. 5. Approval of the Final Plat by the Minnesota Department of Transportation. 6 Any further requirements of Hennepin County, 7. Provisions of Chapter 15 of the City Ordinances. Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. I I R.T. DOC. N0. REGAL ROAD DEVEL OPMENT 2ND ADD /T /ON C.R. DOC. 4 2 3 illn ivy./• n - ,-.rn o =J Js'4a" h so o ao Leo S Rss8 / "W J25. UB sclu[ n ct, C. ©RCr5777'J7 °E — _ — ci 9U / I[+ °J "IS'IL" I i = ---- - - - - -_ 518 'S J <' eJJ2.JJ I \ li L BASIS IS ASLVED d j5g.2 i l$' _ — — �.. — — i a ` i'� U �. I. L - _ /J9 64 ou ' -' g9•T6 14 C 1 r n m l I s I - I � 1 vr L_r y r I h \� „ ^_• � I ti�8� I; A l l I � 999.46 c� N 4'S7'I ! "W - - - -- n YC I r CTS -- �n n r L- - -- __ -- nVV I , I v .vl it ✓ / \Vl.11�v �l �\ Sande Land Snrveying Ync. I i rr/e'er 0 OF L sure rs City Council Agenda Item No. 7c • MEMO To: Michael J. McCauley, City Manager From: Ronald A. Warren, Planning and Zoning Speci st �J Subject: City Council Consideration Item - Planning Commission Application No. 98024 Date: November 18, 1998 On the November 23 1998 City Council Agenda is Planning Commission Y � � Application No. 98024 submitted by Roman Mueller, Speedway SuperAmerica LLC requesting Site and Building Plan and Special Use Permit approval to construct a 24' x 36' freestanding car wash addition to the existing Super America site, 6545 West River Road. Attached for your review are copies of the Planning Commission Information Sheet for Planning Commission Application No. 98024 and also an area map showing the location of the property under consideration, various site and building plans for the proposed development, the Planning Commission minutes relating to the Commission's consideration of this matter and other supporting documents. This matter was considered by the Planning Commission at their November 12, 1998 meeting and was recommended for approval. It is recommended that the City Council, following consideration of this matter, approve the application subject to the conditions recommended by the Planning Commission. Application Filed On 10 -21 -98 City Council Action Should Be Taken By 12 -20 -98 (60 Days) Planning Commission Information Sheet Application No. 98024 Applicant: Speedway Super America LLC Location: 6545 West River Road Request: Site and Building Plan /Special Use Permit The applicant, Mr. Roman Mueller on behalf of Speedway Super America LLC, is seeking site and building plan approval and a special use permit to construct a 24 ft. by 36 ft. (864 sq. ft.) freestanding car wash addition to the existing Super America (SA) site at 6545 West River Road. The property under consideration is zoned C -2 (Commerce) and is located at the southwest corner of 66th Avenue and T.H. 252. Gasoline service stations and auto washes are acknowledged special uses in this zoning district per Section 35 -322, Subdivision 3a of the zoning ordinance. Section 35 -414, Subdivision 6 of the ordinance allows vehicle washes to be in a separate building from the principal building on the site provided materials and exterior treatment of the vehicle wash building are of the same level of quality as the principal building. The site is bounded on the north by 66th Avenue; on the east by T.H. 252 and on the south and west by properties zoned PUD /C -2 that are part of the Regal Theater site and a site proposed for future restaurant development. SA has reached agreement with Centres Group, owner of the theater and future restaurant site, to convey land to SA so that the proposed car wash addition can be pursued (see Planning Commission Application No. 98023). ACCESS/PARKING SA and the future restaurant site located to the west will share an access and median break which has been developed on 66th Avenue North in accordance with traffic study recommendations made at the time Holiday Stationstores proposed to develop the site on the north side of 66th Avenue. This access has recently been installed. A right turn only access is located 82 ft. of the newly created shared access. The new freestanding car wash building is to be located to the southwest of the existing building and will be separated from that principal building by 6 ft. Circulation around the back, or south side of the building, will be from east to west with a stacking lane of approximately 150 ft. which will accommodate at least six to seven vehicles. Also, a bypass lane will be provided to service vehicles not wishing to wait in line. It is recommended that directional signery be provided to indicate a one way flow of traffic around the south portion of the building to avoid potential on site congestion. 11 -12 -98 Page 1 The plan provided makes some modifications to parking on the site. The total number of parking S spaces will be reduced by six, from 38 to 32 spaces. The parking requirement for the 4,200 sq. ft. Super America store and the 1,344 sq. ft. Subway annex is 31 parking spaces (4,200 sq. ft. plus 1,344 sq. ft. times 5.5 spaces /1,000 sq. ft.) The plan provides for 22 parking spaces along the northeast and east side of the site; five spaces in a relocated area west of the store; and the five existing spaces by the Subway Shop. The 32 parking spaces provided exceed the minimum requirement without giving any credit for pump island parking. The modifications to the parking on the site include a widening of the drive lane on the east end of the building with the green strip being parallel to the easterly right -of -way line along T. H. 252. A new landscape /trash enclosure /parking area will be provided to the west and north of the new car wash building. The existing driveway around the south side of the building will be scaled back to be within the newly established property line for SA. Bollards placed in concrete, 10 ft. on center, will be constructed on the south property line separating the SA site from the theater property. A proposed ponding area is to be located on the theater property along this property line. The theater was required to provide a barrier in this area to keep vehicles attempting to shortcut from crossing the property line in this location. SA has agree in their negotiations to provide this required barrier. GRADING/DRAINAGE/UTILITIES Not much change is being made to the site with respect to grading, drainage and utilities. Modifications to the existing south drive lane will require new B -612 curb and gutter. Two new catch basins will be installed along the south curb line to collect drainage on the site. New curb and -utter will be installed where modifications to the green strip on 66th and on 252 are being made. It should be noted that the site plan shows only a ten foot green strip in the newly installed area between the two accesses serving the site along 66th Avenue. This area must be modified to provide the required 15. ft. green strip and such a condition should be noted. A heated ad with a trench drain will be provided t the P p o h west of the car wash building exit to minimize water track out. The existing building has sewer and water provided from the existing mains located in an easement area along the west property line of Super America. The City Engineer is reviewing the plan and may have additional comments. No Watershed review is required as this site is less than five acres in area. LANDSCAPING The applicant has provided a landscape plan in response to the landscape point system utilized by the Planning Commission for making recommendations with respect to landscape plans. The site is 1.5 acres in area and requires 120 landscape points. The applicant is proposing to make use of some existing landscaping on the site and to add additional landscaping to provide 152 landscape 11 -12 -98 Page 2 points. Five existing deciduous trees (two Linden and three Maples) will be retained in the green . strip areas along 66th and T. H. 252. New shade trees to be provided are two Firedance Red Maple in the 252 green strip near the bus stop. Six new ornamental trees are to be added, four Spring Snow Crabapple in the new landscape area between the new access and the revised access to the site along 66th Avenue. Two Amur Maple will be located in a landscape area along the east side of the existing building and eight Colorado Spruce Trees will be added, four in the new landscape area to the west of the building and four at the southeasterly portion of the site. Fifty shrubs including Carpet Juniper, Japanese White Spirea, Mint Julep Juniper, Anthony Waterer Spirea and Hyperion Daylily will be provided in landscape beds at various locations in the green strip. All landscaped areas will continue to be provided with underground irrigation. BUILDING/TRASH ENCLOSURE As previously mentioned, the car wash is a 24 ft. by 36 ft. freestanding building that will have overhead doors on the east and west sides. The car wash is a rollover type with all washing and drying operations contained totally within the building. The exterior is proposed to be a face brick that will match the exterior on the existing building. It will contain two rows of soldier course brick again to match the existing building. It will have a metal hip type roof identical to that on the store. The trash enclosure will be located just to the north of the car wash building and west of the existing Stationstore building. The plans do not indicate the exterior treatment for the trash enclosure, however, I have been assured that it will be a masonry structure with face brick to match the existing building. Also, solid opaque gates will be provided on the north side of the trash enclosure area. SPECIAL USE STANDARDS The applicant's attorney, Mr. Timothy Keane, has submitted a letter in support of the application for a special use permit to construct and operate a car wash at the Super America site. He notes that Super America began operation of the convenience store with gas sales in approximately 1977 and in 1989 acquired additional property and expanded the store to its current configuration. The proposed car wash addition, as mentioned previously, is a special use under the provisions of the city's zoning ordinance. As such, it must meet the standards listed in Section 35 -220, Subdivision 2 of the zoning ordinance (attached). The proposed car wash addition should enhance the general public welfare and should not be detrimental to or endanger the public health, safety, morals or comfort. Mr. Keane notes that the proposed car wash will provide a convenience and amenity not presently available to Super America customers. He notes that the car wash addition will add approximately 5280,000 of additional value to the property. Also the circulation and design of the new building is such that it should provide safe circulation for users and pedestrians and that the car wash will in no way be detrimental to or endanger the public health, safety, morals or comfort. The special use is also not to be injurious to the use and i 11 -12 -98 Page 3 enjoyment of other property in the immediate vicinity for purposes already permitted nor substantially diminish or impair property values within the neighborhood. Mr. Keane notes that the car wash will operate completely within an enclosed structure with little potential for off site impacts. It will meet the noise standards established by the Minnesota Pollution Control Agency, and like other similar car washes located adjacent to the Super America store, will not be injurious to the use and enjoyment of other property in the immediate vicinity nor will it impair or diminish property values within the neighborhood in which it will operate. The next standard requires that the establishment of the special use will not impede the normal and orderly development and improvement of surrounding properties for uses permitted in the district. Mr Keane notes that the proposed car wash is being developed in consultation and in cooperation with the surrounding property owners. It should not in any way impede the normal and orderly development and improvement of those properties. The special use permit standards also require that adequate measures be taken to provide ingress, egress in parking so as to minimize traffic congestion on the public streets. Mr Keane notes that access, egress, circulation and parking have been designed by Super America's architect and engineer in cooperation and consultation with city staff. The on site circulation provides substantial room for stacking of vehicles and will not cause traffic congestion in the public streets. He also notes that the car wash will primarily be utilized by SA's existing customers. Finally the special use permit standards require that the special use in all respects conform to applicable regulations of the district in which it is located. Mr. Keane notes that the proposed car wash requires no variances and in all respects conforms to all applicable regulations of the City of Brooklyn Center. The staff would concur with Mr. Keane's comments and do believe that the standards for special use permit can be met provided any conditions imposed by the City on the applicant are met. One area that again should be noted is the lack of the 1 S ft. green strip along 66th Avenue North between the newly established access and the right turn access. Possible modifications to the site will need to be made and I have been assured that this can be done prior to release of any financial guarantee. It should be noted that the landscape plan does show the 15 ft. green strip as part of the plan and it is on this basis that we would recommend its approval. A public hearing has been scheduled for this application and notices have been sent. RECOMMENDATION All in all we believe the plans are in order and that the standards for special use permit are met and, therefore, recommend approval of the application subject to at least the following conditions: I . Building plans are subject to review and approval by the Building Official with respect to applicable codes prior to the issuance of permits. �+ 11 -12 -98 Page 4 2. Grading, drainage and utility plans are subject to review and approval by the City Engineer prior to the issuance of permits. 3. A site performance agreement and supporting financial guarantee in an amount to be determined based on cost estimates shall be submitted prior to the issuance of permits to assure completion of all site improvements. 4. Any outside trash disposal facilities or on ground mechanical equipment shall be appropriately screened from view. 5. An underground irrigation system shall be installed and maintained in all landscaped areas to facilitate site maintenance. 6. Plan approval is exclusive of all signery which is subject to Chapter 34 of the city ordinances. 7. B -612 curb and gutter shall be provided around all parking and driving areas in accordance with requirements of the City's zoning ordinance. S. A special use permit is granted to Speedway Super America LLC for the construction of a car wash in conjunction with its already existing gasoline service station/convenience store. Any expansion or alteration of the use shall require an amendment to the special use permit granted. 9. The special use permit is subject to all applicable codes, ordinances and regulations. Any violation thereof shall be grounds for revocation. 10. The plans shall be modified prior to the issuance of building permits to show a 15 o 'a ft. a g reen step alon the 66th Avenue ri in accordance with the requirements of the zoning ordinance. 11. Appropriate one way directional signery shall be provided at the southeast and southwest corners of the site to indicate one way traffic. 12. The final plat comprehended under Planning Commission Application No. 98023 shall be approved by the City Council and filed with Hennepin County prior to the issuance of building permits. 13. The applicant shall provide appropriate erosion and sediment control devices on the site durin construction as approved by the City Engineering Department. 11 -12 -98 Page 5 14. The property owner shall enter into an easement and agreement for maintenance and inspection of utility and storm drainage systems prior to the issuance of permits. 15. The applicant shall submit an as built survey of the property, improvements and utility service lines prior to release of the performance guarantee. I1 -12 -98 Paae 6 du 111 `,•_ ... _ L_ N 'Yl AOIIIJI Mo „IM O N .r • • "3 ,� ,YQ = SV,IYO `' rrw•wwww• -� �rrrrrrr� rrrrwr rrrr wwrwwwrrr� �� O�� Z rr wr- rrrr- rrr Q ' z � CAWEN AVE N N '3AY _ N3UWJ _ �' . � �jJ AVE. 1q. [ALDRICH AV V Xv 3165 N 3A COLFAX AVE- ti. P 70ig trtt-rr • _ t � Iry 1iJOana J ^ - 'v� . •� � DUPONi AVE. � i N T FFP -- n r I 3AY g oERSOti- RSON AVE. N. ” 1y MCI -- i H 3AY 1Nm3a3 h � 'N '3AY J1 - 1 T71 r T� iJ f A { r NUUQ7LDT nit ALTA /AGSM LAND TrrLE SURVEY FOR: ASHLAND INC. •. �. (- rrrrl ', , ••, �r_•'.�'= —'..�� . SUF'ERAMERICA 14160 BROOKLYN CENTER Mlt S TA - y _.. -, qtr• w' _'203T % / e-y. y�` ••,r•- Atli rauun. ttxnrnu, 1 T A 11M1n 1 11 r V" . y J• _ p - a'E =...�, *'-- .C. \1. .... �. o xva xnr4•. «a+ 1 ,' .. b'6 r - IZZ. _ •.t.' . "�•"' - . °.. .. _ __ .� r .���.. '''/ 1Cl i?. ! / �' Yr.•a.r . wr4,...�. r v w. N . 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'�`- f l .. ..r �.�...,.•....., � -_,.�- _ I MprrmD 00f]C U00 � ,� 1 l Y rw+ I ruu..r I 1 —1 t 57 - " - -_ _ SITE LAYOUT WITH PROPOSED CAR WASII ,,,� SUPERAMERICA OS,S WEfTR1YER ROAD - SAOOKLYH CENTER, M*MESOTA ro. 6 _.. .... __ _. _ _._._ . —_ -- IsN Vwn hr rrrr ••1•_•••••••_•• nsrrrr»rt rurwr+u iwl ro ' 4100 �� -'�� -X 667H AVENUE NORTH � � it •• f " • •°`" „"•"•• « ... .rT— •U0.51��� ”' ',? t l-� 11 a.iir4i.G�eestur —__— �: f�e.r 80 .....• - ..-,. -"1:.» '. } i..� ( - �/B Jt.sY ^.. �.e �� —.--'r r; � f�.. \ � :� ,' ,`� 1 .+T M- +,.•,<,. �._,. >� .. _ . .. �l - I� , Yd -,.r .. \. .. qtr �•�' 1 .a. w• w _.. �.. � .. ~''., � i.t l� . .... ,. ..• ♦ p �, •�� I �.,a»� foe,.. _ i ' . ,:�� • . � .. "1 .. �, •'; � .g � r te r. -.__ _ _.._ i . .'.. .. ..' 1 ! yl .Y •, � «ti -__ ....__. .__.- . .. •• Jyl ... �'.� { !! t• � 1s r....�....... T; YU'� /emu' - - - -- ! _ '{ s � �--•� _ ., - . -- � -i� ! � i ,. � I`L =' - - - - SxfShw '-; --- • -, t -- Cy A�yy'e� 'f� , If f) ,e,r '� _M-i_ t G7 I�hl .Ti•....... ,. r. •yw oo i/ �I .� / (�-�� -, •4 , �', .. �:• "cY �,�� °•Y .i 36 fr{ of •• � .1 ' — �i ��:�; -y -� �....... 4 ` — t• — .�f. <� — f, —, I lr� w�Y ..'•� ♦ rr. r,.• . r.•ru •.rte • .J ».» Yl "L ., ^ �. a — . a .r... I.'[N .'�'U`>L ri' /Y�:YI� •—. . r _ � .._ _ — ^o __ GRADE FL _ UM PLANOn AIWA •.ewww {Irlf f •.f A...• Mef.f - �'t •• � M SUPERAMER)CA. rlra•.li rl....... rr.,) - - - - .TA.IE HlfY. 182 ! !t5 /4Vt, hh:. . ter. rr�-i .. �..,.T�siwwior • 1 r . t . . t r f - - t ._ ';.. _ - •� � - -- - : - — ta.v.�•.li •FJ,TEItiti 1.10.25:%Tf. � 1 Noreen I I.rw.no+ I r.ro+ r.w. K lie.a- �. w�..eo. Irev.cm . I YRIN y� eve.rrt e b i CN_6MY LMP[T 1r.rbf No/ c. I>rroam tea c+Iw one. •+*ewm <c..IR,•crc.. b Lntb •AY CMPLT .carrell M e—ll.a �• r Hurt 7 kL GierrU rlrrrD r0 [ffxY o. elrt bW.t. x nbrt.:rN [aarrrs caarwcnpr ram lrM ne�e�urr ro�r+eera. 66TH Al' NUE NORTH m e Is»�r wt //�� «n`ao T�errtrf orrcrc m rruw o i _..._ -__._- - -_ — \ •Y Nl b•ua01 O.HrcKf .wu - \ \- \ \I KK11rt MOVfM rVp T. { • ev.� fucw raT>, nLrex /\ �__ J,t r�er.�c n .a.L rtsr.T�r.s eeoe. a roNr .i.en �a.12R i / e,<ISrnr SA nr.•ce wuc suH .... '�'; = ��'►' Cn.n { rCA OWQ) srTL I C.I.TIIN sMll Mil KrKINe •• r.r '•� ' �•t _ Y rNTe —A p_} N(naK / L ^'R1^ � .� Y-. •ne,;+ { 1 "-eKl rSAYLIIY / / ���- r•awlG M RIII Nf ecDe �- +w�` --- rlLr[rt I/MIG r �+. RKHeiK I O O O O ( \�\ R 11L.S�11N23�L I "is "op (e0 rnrs/ / EKI f Krrry) uQ CHI] rnrs rr/r/ID[D. •Ise rnrs [.IealyrRt[s- j ( I A) vecitrr?A . IO nrte !� sa nne f V ' � I I I � � _1_ Z tl)caVw cNr/.L.19 rNrsU L1fllf0 . l : 7 r_ let RAlrriwH - - r N (]) DY41gX,•!s • b nn. e/. ]O nrte ��,^ �' - I t11 fe) [rlMrtQe . O nr» E•. • +e rnrs 15 Has en ]].rlff2 i I I ror•t . In] Has ' ., - r'.._... �._]._ILe1�'n��41`S..LtiY1 rLnrrrnrf ra<.nn•.xes. r ` oe<laxats . w nns • +ew - __ •_ts :...a; f -..' e/crsanle +e rnro -su • f �' _ � / r aownrtrL w u Han. - e. _. PLANT MATERIAL � - �-- ----- •-- •- -• - -•— m r< _,�_ + cot.o+c.•oo s ffi en rmic� }�yqJ!wo snrcr( s e ------ - -_--. IN�I'I'� _ � ������ ry •,, fRll]Aeltl UIC�7d�ArIfRTAI __ __ .. � f- rl..M ....... -.�.. ��� I true I. ♦ •.ar.• ■.ru 1 — °�— - - — - ._ STATE lfWY. 262 6 " AWE NO. U III�.a /1 YI •ararr 1141/ BROOKLYN Ca"FA 6ffESOTA O woo J , Tf[ l l atmm�Tl �Tir - M L1 1. i } - -�-- �� ..,�w««.. lLr , �• " `, *),: 1� 21 �— tM« ... ... ,. o •. «,., ,.n" o .«.... 1 CAR WASH WINDOW ELEVATION CV12 •. _t ilk:..._ an T__ / I ♦ . « ..Q .. �~ - - - - 1 I 1 O I rn <. •+. ' v 1 ELOQ f IA N - - ...,. _ �'➢_H .- tr'�l strid '� —s.r.• � . .... t , — Q �ti'i11D0'.Y ll;l - ^ ._ INTERIOR DOOR HEAD O rvs,sz "'t lr'Tmx 1u>ar+vcrRaezr.tT— Y-M� -� oCW2- ...r --1-� 0 uj ....- ,. _ Y . •, .. � /, , c.. r,t n. - ..,... •� I —� -ob.n n luualstu. - 3 C) z ..... �~ __ .,... � ... .wn Wn. «.aa. wb w. _ -._j F �.w�d.« «a twu+ ww. .'r .M1 •, _ � �4'I. (] � OVERHEAD DOOR J ViINDO',Y JAM a..... .�. _ -A DOOR IIEAD (VENEER /BLOCK WALL) I Q vT X CW2 CW2 Z:r•Z,� t:. uLar o "t.+ -��: o"`.. m.r.• ww w`i.� . w.,�...,,. , m nnn n +c. ny LL O � m .. w,. -(■ r — � -- �«v....0 .mow.: L---j ro • u..n.�..0 1 -_— M.ft.ur I! I1 .mob DROP BOX INLET l WINDOW $ILL DETAIL DOOR JAMB 6 A ,il i ... _ .. OVERHEAD DOOR JAMB o« O CW2 > .,,,,,. CW2 - ti..—�� w.�...,., ,..o. uv'..: _ CW2 "o ., . CW2 C A R WAS JHZ- Cx PTT �, r» r .� r - .. .. ~ j ... - ~� 11 / I /— r r.a an °VT` .uwa ° w, a..iaw nr , ._ -- _ _.__ _ x t LEFT SIDE ELEVATION 1. li TV kd • EXIT ELEVATION ENIBANCE-MVATION QZ 0 :�_;. fr it :E ir 0 Ul cr o i , A- CAk WASH R tt 77 JU -- lo w ill }f f 4160 RIGHT SIDE ELEVATION CW3 II Sl[[ }AMF[I[A. mn AnAO.. < rraAme - � a K . O' T1nn4r[' -J [pr110 K MfR rltt1G ppgrl f':fD 1plD Or wm IID• soclvalo. , i1'A � 1 i � _ � '.. rrb w 1 IC T'•E'I - D A nACx «IIH+�CA InID w i \ \ \ \ \ �'w11Y ttllfM' SACfDNTlA. • —. I � \ \�..t1.KSt M+n V .t pfp.NA f4Hl CAR.WASH a +Y S +p wl KAf 1p M. rrlmn �._ � • wr•Al.al 'ww. n�pin, to wlw Rna wp. tarsi. MD IkT 7 � [r'fAVµlY LLIw *fD � RU[ fp'Y OM� JOMI tlllNtt R6 1.Rlf ItDaRl rAQ RW tAa[OAOVO f-0 K17I1 � �CP1CR1[ IOIARNt4l r(Al dur Of:'M Rat'�bS I VYA'Afl[ al.e Y IDpIlII, fP YaTMI RAIflgt. OD D-2 60 SOFT. CAR WASH BUILDING SIGN a.+a. ualw 1>np •. �o.ent.wY.t� ww w I rl.. D.r __ r,ef.N 1rA ow klzfnl � I � IN F' 1-0 tAVD..AAO t t -.rx*+ al —M .—U et ---- y �_ � � M� pOw � RD aa1[D NnR IR1NlAlla( - vY.IVLe�i%[� •.� NpDlbtlO frltlpt e RD k „�„,[„�� .aD•aAb 6 5 SQ. FT. CAR WASH CLEARANCE SIGN 7 �0 2 � a mm WO DD .•"'� M Uw Wgl/tl AYSy N KA OM W10tVS/ _• — { MTALLIO [OIAwfN7 ` W V I 1, tY11 Ilt` I[1 M 1A RIJf IM tKM%4l }b 4 5 SO.FT. CAR WASH INSTRUCTIONAL SIGN OD 4 SO. FT. DISCLAIMER SIGN °"r°'°" "tp"' j�? n t Ye Ial I.P+1 RpJ.I RflDr.at r; � w DD-2 ti—L.: �."• � t[a>rl �':: � D :� °° �;�,� �" « °n "t - � N uop �D . a tv N� o.or I Mfn cow n. nrD � T tNx c 1 — w.vtow..0 ;� ro^ ■� < OPEN `I CLOSED . � Apprtb+tY INSt •_ - _ _ _ 7 SQ.FT. CAR WASH OPEN SIGN DD -2 r I D., MOW M MI1wluLU— 0.,11 w.l ^��� M D.w. __ hat Dr. MW. Ow Orltiwl t DD -2 f ATTACHMENT TO THE APPLICATION OF SPEEDWAY SUPERAMERICA LLC FOR A SPECIAL USE PERMIT AND SITE PLAN REVIEW TO PERMIT ADDITION OF A CAR WASH AT THE ® SUPERAMERICA LOCATED AT 6545 WEST RIVER ROAD A. The Car Wash SuperAmerica proposes construct a 24 ft x 36 ft self service car wash adjacent to the southwest corner of our store on this site. The car wash will be constructed of masonry to match the existing store and will have a metal hip again ain identical to that of the store. A backlit 60 sf "Touch Free Car Wash" sign, identifying the service inside, is proposed both the north and south (long) walls of the car wash. Cars will enter from the east and exit to the west. The stacking for the car wash will be behind the present store, adjacent to the parking for the proposed theater development south of our site. The site has been slightly expanded to both accommodate the service lane to the car wash and maintain the present circulation around the rear of our building. This lane also provides an "escape" for anyone choosing to leave the queue for the car wash after they have entered it. The car wash will be a "rollover" type with all washing and drying operations contained totally within the building. Cars will it t g ex onto a heated pad served by a dedicated trench drain. This combination minimizes water "track out" in summer and winter. B. Parking Construction of. the car wash and the driveway relocation will reduce the number of parking spaces on site by six, but will continue to provide parking spaces in compliance with code. The following summarizes the present and proposed number and location of parking spaces on site. ALE Present Proposed corner 7 6 E edge 16 16 Subway 5 5 W of store 7 5 W of drive 3 0 Total dedicated 38 32 Pump island 16 16 Total a s e P c s 54 48 The 4200 sf store and the 1344 sf Subway annex total 5544 sf, generating a parking requirement of 31 spaces (5.5 spaces 1 1000 sf). Attachment to the Application of Speedway SuperAmerica LLC 6545 West River Road Page Two Changes to existing parking on site include elimination of the 3 spaces along 66th at the northwest corner of the site; reorientation of 12 of the 16 spaces on the east edge of the site to perpendicular to the property line; and the rearrangement of the spaces at the car wash location, with a net loss of 2 spaces in this area. C. Landscaping The changes to the landscaping on site are proposed to enhance the site and maintain compliance with City requirements. The existing crabapples taken by construction of the relocated drive will be replaced by 4 crabapples in a juniper planting bed along 66th. Junipers will also be added to the bed for the existing trees to the east of the present drive. Plantings at the base of the trademark sign will be refreshed and augmented by new planting as specified. Two Maples will be added near the bus stop on Hwy 252. Two additional Amur Maples will be planted on the t wast edge of the store, increasing the significance of the existing planting in that location. Four additional Colorado Blue Spruce will be placed at the southeast corner of the site to reinforce the existing Maple, and four additional Spruce will be planted at car wash to mark that corner and screen the trash container. The total and basis for the points needed and earned for the landscape calculations are summarized on the Landscape Plan. All landscaped areas will continue to be irrigated. We are confident the car wash will be a useful, compatible and complying addition to our site, and will continue to allow us to provide the best service to those who live in, work in, and visit Brooklyn Center. October 21, 1998 Sacs :Cn 33 -:Z0. SPE'C :A- USE PERMIT, 2. Standards for Soar- +a1 use Permits A special use permit may be granted by the City Council after demonstration by evidence that all of the following are met: (a) The establishment, maintenance or operation of the special use will promote and enhance the general welfare and will not be detrimental to or endanger the public health, safety, morals, or comfort. (b) The special use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor substantially diminish and impair property values Within the neighborhood. (c) The establishment of the special use will not impede the normal and orderly development and improvement of surrounding property for uses permitted in the district. (d) Adequate measures have been or will be taken to provide ingress, egress and parking so designed as to minimize traffic congestion in the public streets. (e) The special use shall, in all other respects, conform to the applicable regulations of the district in which it is located. 3. Conditions and Restrictions The Planning Commission may recommend and the City Council may impose such conditions and restrictions upon the establishment, location, construction, maintenance and operation of the special use as deemed necessary for the protection of the public interest and to secure compliance with requirements specified in this ord- inance. In all cases in which special use permits are granted, the City Council may require such evidence and uarantees as it • may deem necessary as part of the conditions stipulated in connec- tion therewith, 4. Resub.nassion No application for a special use per=mit which has been denied by the City Council shall be resubmitted for a period of twelve (12) months 'from the date of the final determination by the City Council; except that the applicant may set forth in writing newly discovered evidence of change of condition upon which he relies to gain the consent of the City Council for resubmission at an earlier time. 5. Revocation and Extension of Special Use Permits When a special use permit has been issued pursuant to the pro- visions of this ordinance, such permit shall expire without further action by the Planning Commission or the City Council unless the applicant or his assignee or successor commences work upon the sub- Jett property within one year of the date the special use permit is granted, or unless before the expiration of the one year period the applicant shall apply for an extension thereof by filling out and submitting to the Secretary of the Planning Commission a "Special Use Per=mit" appl requesting such extension and paying an additional fee of $15.00. Special use permits granted pursuant to the provisions of a prior ordinance of Brooklyn. Center shall expire within one year of the effective date of this ordinance if construction upon the sub- ject property pursuant to such special use permit has not commenced within that time. I. a any instance where an existing and established special use is abandoned for a period of one year, the special use permit re- lated thereto shall expire one year ment. following the date of abandon- ROB ESV LARKW ERT L. IOFFMy� LARKIN, HOMMAN, DALY & LINDGREN, LTD. JOHN R. HILL RCB GERALD K FRIEDELL PETER J. COYLE EONARD J. ORISCCLL ATTORNEYS A T LAW LARRY 0. MARTIN GENE N. FULLER JANE E. BREMER .ICHN D. FULLMER JOHN J STEFFENAGEN FRAM( 1. HARVEY MICHAEL J. SMITH CHARLES J. D1E MOOE LL N 1500 NORWEST FINANCIAL CENTER FREDERICK W. NIE� CHRISTOPHER PHE T'� UNDA N. FISHER MAULUM O. THORNTON THOMAS P. STOLTMAN 7900 XERXES AVENUE SOUTH ANN M. MEYER MICHAEL C. .;ACKMAN RENEE L JACKSON JOHN E. C'EK BLOOMINGTON. MINNESOTA 55431 -1194 CHRISTOPHER K LARDS JON S. SWERZEWSN MARCY R FRDST THOMAS J. FLYNN TELEPHONE (612) 835 -3800 DOUOLA'S M' RAMLER JAMES P. QUINN STEPHEN J. KAMINSKI TODD 1. FREEMAN THOMAS F. ALEXANDER GERALD L BECK FAX (612) 696 -3333 DANEL T. KADLEC JOHN B. LUNDOUIST SHARNA A WAHLGREN DAYLE NOLAN' JOHN F. KLOS JOHN A. COTTER • C. ERIK HAWES PAUL, 8. PLUHKETT C. BRENT ROB&NS E ALAN L KILOOW JOHN YORKER KATHLEEN M. PICOTTE NENAIAN JAMES M. SUSAG MICHAEL S. LEBNRCW ANDREW O. RYAN •' GREGORY E KORSTAD OANIEL J. BALLINTINE GARY A VAN CLEVE • USA S. ROBINSON DANIEL L BOYMES ERICA S OLASSSERG TIMOTHY J. KEANE SONYA R. SRAUNSCIAWIO •" ALAN M. ANCERSCN JOSEPH J. FITTANTE. A. DON AL ROBACK MARK D. CHRISTOPHERSON MICHAEL W SCHLEY BONN S. KREPS OF COUNSEL TERRENCE E BISHOP JACK F. DALY USA GRAY D. KENNETH LINDGREN GARY A RENIEKE ALLAN E. MULLIGAN CHRISTOPHER J. KA RRISTHAL JOSEPH GITIS KENIEL J. OKRCGGE BRUCE J. DOUGLAS ALSO ADMITTED W `MSCONSIN VALUAM C. GRIFFITH, A. � ONLY ADMITTED IN MASSACHUSETTS October 29, 1998 ONLY ADMITTED W IOVN Ron Warren, Planning Director VIA FACSIMILE 569 -3494 City of Brooklyn Center & U. S. MAIL 6301 Single Creek Parkway Brooklyn Center, MN 55430 Re: Speedway SuperAmerica LLC Application for Special Use Permit Dear Ron: This letter is offered on behalf of Speedway SuperAmerica LLC (SuperAmerica) in support of its application for a Special Use Permit (SUP) to construct and operate a car wash at the existing SuperAmerica store located at 6545 West River Road (the Store). SuperAmerica began operation of a convenience store with gas sales in approximately 1977. At that time, SuperAmerica converted a two -bay service station to the convenience store format. In 1989 SuperAmerica acquired additional property and expanded the store and gas service area to the current site configuration. SuperAmerica is operating the Store under a Special Use Permit approved by the City in 1989. SuperAmerica has purchased two additional parcels of real estate to accommodate the proposed car wash. The combination and attachment of these parcels are included in the preliminary plat application accompanying this Special Use Permit request. Please find set forth below SuperAmerica's response to the Standards for Special Use Permits set forth in the City Code of Ordinances Section 35 -220 subd. 2. (a) The establishment, maintenance or operation of the special use will promote and enhance the general welfare and will not be detrimental to or endanger the public health, safety, morals, or comfort. Response. The proposed car wash will provide a convenience and amenity not presently available to the customers of SuperAmerica. The car wash will add approximately $280,000 in additional value to the property and valuation for property tax purposes. The car wash will be located south of and to the rear of the existing SuperAmerica structure. LARKIN, HOFFMAN, DALY & LINDGREN, LTD. Ron Warren, Planning Director October 29, 1998 Pa ,, e 2 The circulation and drives have been designed and will be constructed to provide safe circulation for users and pedestrians. The car wash will in no way be detrimental to or endanger the public health, safety, morals or comfort. (b) The special use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor substantially diminish and impair property values within the neighborhood. Response. The car wash will operate completely within an enclosed structure and will operate with the doors down to ensure there will be no potential for off -site impacts. The car wash operates well within all Minnesota Pollution Control Agency noise standards for residential uses. Similar car washes are located adjacent to SuperAmerica stores throughout the area and have operated for years without characteristics that are injurious to the use and enjoyment of other property in the immediate vicinity for purposes already permitted and does not in any way diminish and impair property values within the neighborhood in which they operate. (c) The establishment of the special use will not impede the normal and orderly development and improvement of surrounding property for uses permitted in the district. Response. The proposed car wash is being developed in consultation and cooperation with the surrounding property owners. The establishment of the car wash will not in any way impede the normal and orderly development and improvement of surrounding property for uses permitted. d Adequate e () q measures have been or will be taken to provided ingress, egress and parking so designed as to minimize traffic congestion in the public streets. Response. The access, egress, circulation, and parking have been designed by SuperAmerica's architect and engineer in cooperation and consultation with the City Engineer, Director of Public Works, and Director of Community Development. On -site circulation has been designed so as to provide substantial room for stacking of vehicles and will in no way cause traffic congestion in the public streets. The car wash will primarily be utilized by SuperAmerica's existing customers as an additional amenity to the SuperAmerica customer base. (e) The special use shall, in all other respects, conform to the applicable regulations of the district in which it is located. Response. The proposed car wash requires no variances and in all respects conforms to applicable regulations of the City of Brooklyn Center. SuperAmerica respectfully requests approval of the preliminary plat and Special Use Permit with the conditions as recommended by City staff. LARKIN, HOFFINIAN, DALY & LINDGREN, LTD. Ron Warren, Planning Director October 29, 1998 Page 3 Should you have any questions, please contact me at 896 -3203. Sincerely, Timo y t� LARKIN , DALY & LINDGREN, Ltd. hmb Enclosure c: Roman Mueller, Speedway SuperAmerica LLC 0439826.01 City Council Agenda Item No. 7d • • MEMO To: Michael J. McCauley, City Manager From: Ronald A. Warren, Planning and Zoning Speciali t ?� ti Subject: City Council Consideration Item - Planning Commission Application No. 98025 Date: November 18, 1998 On the November 23, 1998 City Council Agenda is Planning Commission Application No. 98025 submitted by Brookdale Corner LLC requesting Preliminary Plat Approval to combine three parcels of land located at the southwest corner of Xerxes Avenue and County Road 10 into a single parcel. Attached for your review are copies of the Planning Commission Information Sheet for Planning Commission Application No. 98025 and also an area map showing the location of the property under consideration, a copy of the preliminary plat, the Planning Commission minutes • relating to the Commission's consideration of this matter and other supporting documents. This matter was considered by the Planning Commission at their November 12, 1998 meeting and was recommended for approval. It is recommended that the City Council, following consideration of this matter, approve the application subject to the recommendations of the Planning Commission. • Application Filed On 10 -22 -98 • City Council Action Should Be Taken By 12 -21 -98 (60 Days) Planning Commission Information Sheet Application No. 98025 Applicant: Brookdale Corner LLC Location: Southwest Corner of Xerxes Avenue North and County Road 10 Request: Preliminary Plat The applicant, Mr. John Johannson on behalf of Brookdale Corner LLC, is seeking preliminary plat approval to combine three parcels of land they have recently acquired into a single parcel. The land in question is the site of the Westbrook Mall and the Dayton's Home Store and is located at the southwest corner of County Road 10 and Xerxes Avenue North. The property is zoned C -2 (Commerce) and is bounded on the north by County Road 10 and an office building located at the corner of Country Road 10 and Brooklyn Boulevard; on the east by Xerxes Avenue with the Brookdale Shopping Center on the opposite side of the street; on the south by Baker's Square, 56th Avenue North and the Marquette Bank property; and on the west by Brooklyn Boulevard. Under Section 35 -540 of the zoning ordinance, "multiple parcels of land which are contiguous and adjacent and which are proposed to serve a single development use and which are under common ownership, shall be combined into a single parcel through platting or registered land survey." In the present case the properties are under single ownership, thus, the replatting is required. The applicant plans to clear the property of the Westbrook Mall main building and the Dayton's Home Store for construction of a CUB Foods and possible other retail sites. The current descriptions of the properties are Tract A, RLS 1235 (Westbrook Mall site) and Tracts F and G, RLS 1142 (Dayton's Home Store site). Tract A, RLS 1235 is a somewhat L shaped parcel containing the Westbrook Mall main building and two other buildings along with a portion of Brooklyn Boulevard right -of -way and is 10.853 acres in area. Tracts F and G, RLS 1142 are 3.56 acres in area, Tract F being the main portion of the Dayton's. Home Store site and Tract B being a very small triangular shaped parcel at the southeast corner of the site. Tract F also includes a portion of Xerxes Avenue right -of -way which is .489 acres in area. The proposed plat calls for a single parcel of land to be known as Lot 1, Block 1, Brookdale Corner Addition. It will be 12.859 acres in area. The preliminary plat comprehends the dedication of 1.065 acres from this plat for Brooklyn Boulevard right -of -way and .489 acres for Xerxes Avenue North right -of -way. Right -of -way easements over these areas exist but they should be formally dedicated as part of a plat. • 11 -12 -98 Page 1 The applicant will be seeking preliminary plat approval along with final plat approval and wants to file the plat before the end of the vear. The City Engineer is reviewing the preliminary and final plats and may have additional comments. This area is part of the Brookdale Regional Ponding Area and will eventually be tied into that system. It is not anticipated that formal Watershed review will be required at this time, however, the City Engineer will confirm this with the Watershed's Engineer. The applicant plans to demolish the two main buildings on the sites and hopes to be under construction with the CUB Foods plan by early Spring. It should be noted that a formal site and building plan application, or a PUD application, will need to be presented to the Planning Commission and the City Council before construction of the planned buildings can go forward. A public hearing has been scheduled and notice of the Planning Commission's consideration has been published in the Brooklyn Centers Sub/Post. RECOMMENDATION The proposed preliminary plat appears to be in order and approval of the application is recommended subject to at least the following conditions: 1. The final plat is subject to review and approval by the City Engineer. 2. The final plat is subject to the rovisions of Cha ter 15 of the t J p p Ci y Ordinances. 3. The preliminary and final plats shall be modified to indicate the proper underlying legal description of Tract A, RLS 1235 over the area that encompasses the Westbrook Mall. 11 -12 -98 Page 2 �1 31,r" ✓ :: i :10�L�- fi ti j A'it, l U. L _ _L1_L I AVE. +� a , r (\ %�; r ✓ — osEr NG ' I .__l ( TITf T11TT_Il I (I I: j,j,L11llL :� 1\ (}Yf all IUWWOdNlId � .. � — t E. ,`i �; � •� '`` "' - �''" I AB&OTT AVE. • N. L1.1�J LZLW zENITN A VE. C40 o - n Z ' -1 � --/ '- VI �• YORK AVE. N. � f p 0 � R V . r �' ►� • a *RkS . AVE. N. 11 8 ��~� rASNPAIRN AVE. N. — ji _J't - vUCLrt �`• Q o D VINCENT AVE. N. iR Ir i _---------- - -- la ` t r , �X �t �" ., ��C ,►�`, �, ��, ���� CHI �� � ���\� �\\ \ ' •�' 1 --- ffilKlUUES SEL L AVVt� l EN AV N. - I v ~ 8 OIIVER AVE. N k ON H AVE URG AVE. l O tgkGAN AVE I I 1 t 1 1 I i I SUMMIT DR. I (11 I I i 1xiAi�l N 1 R4444+H i'1d [rsvlsorlstd ! t OD S'T QY 1 I D'i7 +w..v,� m►i"^.,t .._..� ` -- o, aw - - -- n.u� ^,_ .. r l 1 Yd7008H 1 1 `•.• ,... f C _ ` '•'"�' P M NAN1JO0 T �,� l ) 1 ,y •w « n,.s s�o ° Rni� 1 � `, ' \ j .,�r('r�°" )'lrr, <N . L7 ..._ ..,.,`� : 1 i • S I . .q • � ,rr.n,to - v , tu n i : Y7 i t ,f `y. l, •' .`` .. .�;.: _ M1 � �.^ , �.�r•' ��l �• y .• •• •.�.• .-�. r.• .•w n.w.v w.• ww.wr, eu r < . /.' e/ \ � I ; . f• 'y ~{'`• , t t ••, , � • o !la- N: �:•� /`. ,, \`y`� 1_, .. ' r �' t l � $ ;.' ;.. �, , , f / ° / .i :/ .. +? t ^;fir. r ,\ �..., K'r, �t?Ve �' l{ �• j, 31 'Y � t C ° � r• .`^ �• { ` J 107 �, �/ r 1 ''� - .,���;Y 1:: y l CQ � ;_, - ° / T x0079 p '�• ": F : •\` \ •-�. - . •, o �,- IV i • . '^�,^ li`%:ti":, ? : -., / � � „ vim � ✓�,� 5 t t , l' 777 • f , •� - BROOKDALE CORNER IR.T. DOC. NO. ADDITIOd 0D9 2 ',1; H 7.16'0 0* f 315.21 CGYRJIYlAOAD NQ )o BLOCK LOT A C. T 1 4 2 6400 00 � � � 7, 41 w 07.46 k ' E 87-46 w j Sp o R,'. S "'i- O WOW L CO. NW25'24'6j�; - 0 �661" ft—giq. IN. P10 aB WESTWOOD INiE1lORAINDUM DATE: November 9, 1998 TO: Ron Warren, Planning and Zoning Specialist FROM: Scott Brink, City Engineer SUBJECT: Cub Foods - Preliminary Plat Application I have reviewed the Preliminary Plat and have the following comments to offer at this time. A site improvement plan was not submitted with the plat. However, it is presumed that an updated site plan will soon be submitted, and will be consistent with a proposed site plan submitted earlier this year. • The property borders County Road 10 and County Road 152 (Brooklyn Boulevard). Copies of the preliminary plat have been forwarded to Hennepin County for their review. Hennepin County may therefore have additional comments as well. It should also be mentioned that Hennepin County officials have met with City staff and the developer previously to discuss site access and traffic related issues. Hennepin County has conveyed acceptance of proposed site access proposals. • Sidewalk easements currently exist along the County roadways and will need to be maintained. However, it is expected that additional right of way along County Road 10 will need to be dedicated to provide for an additional right turn lane and relocation of the sidewalk. Based upon the site plan previously submitted, I would recommend that at least an additional 20 feet along County Road 10 be dedicated to provide for the improvements (10 feet for the roadway and another 10 feet for sidewalk). However, an updated site plan would allow a more refined estimate. Any additional comments or requirements by Hennepin County will need to be considered as well. • An existing utility easement in the southeast portion of the property will need to either be maintained or adjusted depending upon the final site design and utility locations. A water main loop and sanitary sewer currently traverse the property and serve other parcels. Depending upon the final plan and utility relocates (as required), appropriate easements will need to be dedicated. • Any recommendations or comments of the City attorney will also need to be considered for this plat. MEMORANDUM DATE: November lb, 1998 TO: Michael McCauley, City Manager FROM: Scott Brink, City EngineerW SUBJECT: Resolution Approving Final Plat - BROOKDALE CORNER ADDITION At the November 23, 1998 City Council meeting, the Council will be considering Preliminary and Final Plat approval for BROOKDALE CORNER ADDITION. The preliminary plat was approved by the Planning Commission at their November 12, 1998 meeting. The applicant, Mr. John Johanson on behalf of Brookdale Corner LLC is seeking preliminary and final plat approval to combine three parcels of property into a single parcel, located south of County Road 10 between Brooklyn Boulevard and Xerxes Avenue North. The applicant plans to clear the property of the existing Westbrook Mall building and the Dayton's Home Store for construction of a CUB Foods and possible other retail facilities. Review of the plat has been assisted by submittal of a proposed site plan earlier this year. However, the applicant has not yet formally submitted a site plan for approval. Therefore, at least some of the review comment contained s ont ed herein are based upon the previously submitted site plan, and correspondence that has occurred since that time. Additional comments are as follows: • The property borders County Road 10 and County Road 152 (Brooklyn Boulevard). Copies of the preliminary and final plat have been forwarded to Hennepin County for their review. Hennepin County may therefore have additional comments as well. It should also be mentioned that Hennepin County officials have met with City staff and the developer previously to discuss site access and traffic related issues. Hennepin County has conveyed acceptance of proposed site access proposals. • Sidewalk easements currently exist along the County roadways and will need to be maintained. However, it is expected that additional right of way along County Road 10 will need to be dedicated to provide for an additional right turn lane and relocation of the sidewalk. Based upon the site plan previously submitted, I would recommend that at least an additional 20 feet along County Road 10 be dedicated to provide for the improvements 10 feet for the roadway oadway and another 10 feet for sidewalk). However, an updated site plan would allow a more refined estimate. Any additional comments or requirements by Hennepin County will need to be considered as well. • An existing utility easement in the southeast portion of the property will need to either be maintained or adjusted depending upon the final site design and utility locations. A water main loop and sanitary sewer currently traverse the property and serve other parcels. Depending upon the final plan and utility relocates (as required), appropriate easements ® will need to be dedicated. • Any recommendations or comments of the city attorney will also need to be considered for this plat. Consideration of final plat approval at the November 23 meeting will be contingent upon the Council granting preliminary plat approval first. It is therefore recommended that the City Council approve the attached resolution providing for final plat approval for BROOKDALE CORNER ADDITION, contingent upon the conditions described in the resolution. Member introduced the following resolution and moved its . adoption: RESOLUTION NO. RESOLUTION APPROVING FINAL PLAT - BROOKDALE CORNER ADDITION WHEREAS, the Brooklyn Center City Council on November 23, 1998, approved Planning Commission Application No. 98025, providing for Preliminary Plat approval submitted by Brookdale Corner LLC; and WHEREAS, the property owner (applicant) has applied for Final Plat Approval as required by the City Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that the plat of BROOKDALE CORNER ADDITION is hereby approved subject to the following conditions: 1. The plat shall be subject to review and further conditions as required by Hennepin County. 2. The applicant shall enter into a standard maintenance and utility agreement with the City. 3. Review and Approval of the City Engineer. 4. Property title opinions or legal documentation as required by the City Attorney. 6. Provisions of Chapter 15 of the City Ordinances. Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 6 BROOKDALE CORNER 2' 287 R.T. DOC. NO. ADDITION AV;O. S UIF. 1% 1 N 187 C .315.71 COMTr ONCt 1- 10 BLOCK , A V I V . I I LOT •- 3 � � < .. .. ., i �S � r // A 4 12 fv l 49.92 i N 87'4653' S 87 w IJI.V S 87 w 158 75 7 7 52 P R : 1 o 42 6 Co. NW2574 LO 0 go I" W --.4 et— s—. WESTWOOD SA.t 2 .12 0 0 City Council Agenda Item No. 7e • 41 • MEMO To: Michael J. McCauley, City Manager From: Ronald A. Warren, Planning and Zoning Speci t .�i AJ Subject: City Council Consideration Item - Planning Commission Application No. 98026 Date: November 18, 1998 On the November 23, 1998 City Council Agenda is Planning Commission Application No. 98026 submitted by CSM Corporation requesting Site and Building Plan approval to construct a 6,000 sq. ft. office building with a drive up facility on the property located on Northway Drive, just north of County Road 10. Attached for your review are copies of the Planning Commission Information Sheet for Planning Commission Application No. 98026 and also an area map showing the location of the property under consideration, various site and building plans for the proposed development, the Planning Commission minutes relating to the Commission's consideration of this matter and other supporting documents. This matter was considered by the Planning Commission at their November 12, 1998 meeting and was recommended for approval. It is recommended that the City Council, following consideration of this matter, approve the application subject to the conditions recommended by the Planning Commission. Application Filed On 10 -29 -98 City Council Action Should Be Taken By 12 -28 -98 (60 Days) Planning Commission Information Sheet Application No. 98026 Applicant: CSM Corporation Location: Northway Drive, North of County Road 10 Request: Site and Building Plan Approval The applicant is requesting site and building plan approval for a 6,000 sq. ft. office building with a drive up facility for a credit union. The property in question is zoned C -lA (Service /Office - no height limitation) and is located on Northway Drive, just north of County Road 10. The property in question is bounded on the north by single family residential homes; on the east by the Honeywell Credit Union property and Northway Drive; on the south by County Road 10; and on the west by the five story Brooklyn Crossing office building fronting on Brooklyn Boulevard. Office buildings, including office buildings with no height limitation, are permitted uses in this zoning district. The site in question contains two existing one story office buildings, one is 7,200 sq. ft. and the other is 8,400 sq. ft. These two one story office buildings were part of a five building office . complex which was approved for this site in 1986 under Planning Commission Application No. 86025. A reconfiguration of lot lines in 1990 reduced the size of the three remaining office building pads located to the north of the two existing office buildings allowing for a future 7,200 sq. ft. office building and two 6,000 sq. ft. office buildings. These foundations were put in. In 1993, under Planning Commission Application No. 993013, CSM Corporation proposed that the three northerly office buildings on the site be replaced by a single 23,250 sq. ft. one store office building which was proposed to house the IRS. That plan was approved, however, the IRS building was never constructed. The applicants now propose to revert to the 1986 configuration and are planning to construct the easterly 6,000 sq. ft. building with a drive up window and canopy to service a credit union user of the building. Many of the required site improvements have been installed based on the 1986 plan and , as mentioned previously, the foundations for these buildings have been installed. The site improvements already provided include curb and gutter and a parking lot on the east end of the site with an access directly to Northway Drive, curb and gutter improvements along the northerly portion of the property and the establishment of a 15 ft. green strip and screening consistent with the requirements in the zoning ordinance as well as landscaping, which includes spruce trees in that green strip. The curb and gutter and drive lanes have been established along the main, shared access, off of Northway Drive which runs southerly of the proposed last three office buildings. 11 -12 -98 Page 1 A i . CCESS/PARKIi�G The rimar y access to the ma' P � m site is from a 30 ft. wide driveway located to the south of the proposed new building. This access is a shared access with the five story Brooklyn Crossing office building farther to the west as well as the two existing one -story office buildings to the south of this access. Another access to this site which will serve primarily the building under consideration is from Northway Drive and is located easterly of this building. The parking lot is configured with 90 degree parking on two sides of a 24 ft. drive lane which will allow the access point in question to serve both in and out traffic. Traffic wishing to utilize the drive up windows will generally be in a counter clockwise manner going from the east side of the building to the west side and then exiting to a newly established driveway tying into the main driveway servicing this office complex and then back to Northway Drive. Two drive up lanes and an ATM lane are to be provided under a canopy extending out to the west of the proposed new building. Modifications to some of the existing curb and gutter will need to be made to the west side of the building in order to accommodate the drive up lanes and the flow of traffic through that area. The parking for this site is already established and is located on the east side of the office building. Thirty parking spaces will provided in this area for the 6,000 sq. ft. office building. At a ratio of one parking space for every 200 sq. ft. of gross floor area, the parking requirements for such a building are met. It should be noted, however, that parking for this site has been based on the entire five building office complex. A total parking compliment of 392 parking stalls is required based on the full development of this site. Based on previous plans which have been approved, the total parking provided for this site is 410 parking spaces, which exceeds the requirement for the site. The new configuration eliminated some parking stalls but, nevertheless, the site will meet and in fact exceed the minimum parking requirements. GR4DNG/DRAINAGE/UTILITIES The utilities and drainage patterns for this site have already been established and installed. As mentioned, the foundation for this building is in place and the plans note the need to remove an existing post indicator valve and abandon an existing water service line on the west side of the building as well as the abandonment of existing sanitary sewer service on the east side of the building. New water and sanitary sewer service will tie into the north side of the building. Storm sewer exists in the east parking lot which ties into existing storm sewer in Northway Drive. Some minor grading revisions will need to take place along the west side of the building in the canopy /drive up area to accommodate drainage on the site. The size of the entire site, which is 4.17 acres, is less than the five acre threshold requiring Watershed Commission review. The City Engineer is reviewing the drainage and utility plans and may have additional comments to offer. 11 -12 -98 Page'? LANDSCAPING Landscap is a continuation of the plans d P � p s submitte to 1986 and much of the landscape plan has already been established. This entire 4.17 acre site requires 374 landscape points based on the landscape point system utilized by the Planning Commission for evaluating landscape plans. Existing landscaping includes 17 shade trees, 58 shrubs, 12 coniferous trees and 4 decorative trees for a total of 277 existing landscape points. The applicants are proposing to add two shade trees, four decorative trees and twenty shrubs in the immediate area of the proposed new building, which amounts to 56 additional landscape points. This will leave a balance of 40 landscape points which vhich will need to be established d ' an installed at the time the other w P P two building pads to the west of this site are developed. The new landscape plan calls for two Norway Maples to be planted in the green area to the east of the site separating this site from the Honeywell Credit Union further to the east. Three Red Splendor Crap Apples are proposed along the southerly portion of the building and an Amur Chokecherry is proposed to be located between the easterly parking lot and the east wall of the new building. Twenty shrubs are located primarily as foundation plantings and include Shrub Rose, Rosy Glow Barberry, European Cranberry Bush, Winged Euonymus, Globe Arborvitae and Spreading Juniper. BUILDING The building exterior will be face bricked to match the existing buildings. A canopy on the east side of the building over the main entrance is also face brick as well as the canopy on the west side of the building extending out over the drive up lanes. LIGHTING/TRASH The applicant has provided a lighting plan showing the location of three freestanding light poles each 25 ft. in height. The information shows the lights to be 250 watt in a shoebox type fixture that will shield light glare and direct light downward on the site. One wall mounted 250 watt light is located along the north side of the building to illuminate that area. The lighting proposed is 'Mthin the standards outlined in the zoning ordinance for lighting. No trash disposal facilities are indicated on the plan, however, any outside trash disposal facilities and on ground or rooftop mechanical equipment are required to be screened from view. RECOMMENDATION All in all the plans seem to be in order and approval of this application is recommended subject to the following conditions: 11 -12 -98 Page 3 I . The building plans are subject to review and approval by the building official with respect to applicable codes prior to the issuance of permits. 2. Grading drainage and utility plans e subject v s ar s b t to review and approval b the City . P J PP Y Y Engineer prior to the issuance of permits. 3. A site performance agreement and financial guarantee in an amount to be determined based on cost estimates shall be provided prior to the issuance of building permits for this project. 4. Any outside trash disposal facilities and rooftop or on ground mechanical equipment shall be appropriately screened from view. 5. The building is to be equipped with an automatic fire extinguishing system to meet NFPA standards and shall be connected to a central monitoring device in accordance with Chapter 5 of the city ordinances. 6. Underground irrigations systems shall be installed in all landscaped areas to facilitate site maintenance. 7. Plan approval is exclusive of all signery which is subject to Chapter 34 of the city ordinances. 8. B -612 curb and gutter shall be provided around all parking and driving areas. 9. The applicant shall provide an as built survey of the property, improvements and utility service lines prior to the release of the performance guarantee. 10. The applicant shall provide a ro riate erosion and sediment control devices on the pp o P PP P site during construction as approved by the city Engineering Department. • 11 -12 -98 Page 4 Y �' Y !G j AVE. N. AlKT r z •�/ /�J ' — DREW AVE. — > > I REW AVE. N. , . .,� 'Y _ DREW !rG ? Hj IT l�TITITTTITfl I 1I1 I I I Ili I ,�� � � •au tatldl+iaoN -- �i I YORK F V 7ERXES ;S – YASl+SURl+ AVE. 14H – (n X , \ Ass v ctxr EJfT AVE. " N T ] z z - VINC Fl � RUSSET iTT�IVTTt1 Lou QUEEN AVE. N. I PENN AVE +. _ \ CD OLIVER AVE .1 _ Kt n�"OHAVE lk __ LjnRG&__AVE.j I -- WRGAN AVE ,) v I [ - --N-I- I-I T \ SUtuIT DR. s a BROOKLYN CENTER 13" AP%OOKLYN CROSSING �R 11151 IwR ROaD � OFFICE PARK PHASE 11 BLDG E SITE LOCATION MAP _R6 �Tf W DATA Mp„CCT PMT KRAM9 SHEET WEX I a5fvk of&.Wvcl -A 5u(-- ..— ___,_ —_ (r I\TYR l9: tltQ CDI (Oe1V111g1 IgS]e (r-NIIIC U.l . � • b INf4 hh Yw4M]f! 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O 1 roost ov{to{r+G PLAN N n51TC LIGHTING PLAN _1 MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR MEETING NOVEMBER 12, 1998 CALL TO ORDER The Planning Commission regular meeting was called to order by Chair Willson at 7:30 p.m. ROLL CALL Chair Tim Willson, Commissioners Graydon Boeck, Ed Nelson, Rex Newman, and Dianne Reem were present. Also present were Secretary to the Planning Commission/Planning and Zoning Specialist Ronald Warren, Planning Commission Recording Secretary Arlene Bergfalk. Commissioners Stephen Erdmann and Sean Rahn were absent. Mayor Kragness attended the meeting. APPROVAL OF MINUTES - OCTOBER 29. 1998 There was a motion by Commissioner Reem, seconded by Commissioner Newman, to approve the minutes of the October 29, 1998 meeting as submitted. The motion passed unanimously with Commissioner Nelson abstaining. CHAIR'S EXPLANATION Chair Willson explained the Planning Commission's role as an advisory body. One of the Commission's functions is to hold public hearings. In the matters concerned in these hearings, the Commission makes recommendations to the City Council. The City Council makes all final decisions in these matters. WILLIAM STONER - APPLICATION No. 980_? 1 - REZONE PROPERTY Chair Willson introduced Application No. 98021, a request to rezone property at 5001 Drew Avenue North from C -2 (Commerce) to C -1 (Service /Office), submitted by William Stoner. This application was filed on 09 -17 -98 requiring City Council action by 11 -16 -98 (60 days); however, the applicant waived the 60 day statutory limitation on 10- 15 -98, and requested this application be carried over to the 11 -12 -98 meeting. Mr. Warren presented the staff report and used transparencies to describe the location of the parcel of land addressed 5001 Drew Avenue North. This application requests down - zoning of the property in order to limit the allowable commercial uses of the land to strictly service /office purposes to allow an expansion of the building and reduce the buffer zone required for general commerce uses. Service /office uses allowed under C -1 zoning are listed in Section 35 -320, subdivisions 1 through 3, of the zoning ordinances. (See attached Planning Commission Application Information Sheets dated 10 -15 and 11- 12 -98.) Mr. Warren described how the application complies with the rezoning evaluation policy and review guidelines as contained in Section 35 -208, based on staff analysis and the applicant's comments 11-12-98 1 i (letter dated 09- 15 -98). Rezoning to C -1 permits improved utilization of the property because reduced buffer requirements from 35' to 15' will allow for expanded parking and connection of the two buildin-s on the site as planned by the applicant to achieve more efficient use of the structure and property. Mr. Warren noted that a separate site and building plan for the proposed expansion must be submitted by the applicant. The staff concludes that rezoning this parcel to C -1 (Service /Office) meets the guidelines, is consistent with the comprehensive plan and accepted planning principles, and does not constitute spot zoning. Rezoning of the property limits the use to a less intense commercial purpose and results in a more compatible designation given the surrounding classifications and neighborhood, allows efficient expansion of the site, and is considered to be in the best interests of the community. Mr. Warren recommended approval of Application No. 98021 and reviewed the Resolution drafted for the Commission's consideration which outlines the elements of approval. Mr. Warren explained that as agreed at the 10 -15 -98 meeting, notification regarding the 1 I -12 -98 g public hearin on this application and a request for comment were sent to the members of the Southwest Neighborhood Advisory Group. Notification was sent to surrounding property owners and published in the Sun/Post. Chair Willson called for questions from the Commissioners. Commissioner Boeck supported the intent of the rezoning as described in the staff report. PUBLIC HEARING - APPLICATION NO. 98021 There was a motion by Commissioner Boeck, seconded by Commissioner Reem, to open the public hearing at 7:55 p.m. The motion passed unanimously. Chair Willson called for comments from the public. Ms. Yvonne Quady, 4725 Twin Lake Avenue North, member of the Southwest Advisory Group, stated the application and related plans sound "good" but she did not know how others in the neighborhood viewed the application. It was noted that a resident from the area had questions which were answered at the 10 -15 -98 meeting. He did not oppose the application. Chair Willson called for other comments from the public. No other individuals from the public appeared before the Commission during the public hearing on Application No. 98021. CLOSE PUBLIC HEARING There was a motion by Commissioner Newman, seconded by Commissioner Nelson, to close the public hearing on Application No. 98021 at 7:58 p.m. The motion passed unanimously. ACTION RECOMMEND A PPROV AL OF APPLICATION NO. 98021- WILLIAM STONER - REZONING Commissioner Boeck introduced Planning Commission Resolution No. 98 -05 "Resolution Regarding Recommended Disposition of Planning Commission Application No. 98021 submitted by William R. Stoner" and moved its adoption. The motion for the adoption of the resolution was is duly seconded by Commissioner Newman and upon vote being taken thereon, the following voted 11 -12 -98 2 in favor thereof: Chair Willson, Commissioners Boeck, Nelson, Newman, and Reem, and the following voted against the same: None; whereupon said Resolution was declared duly passed and adopted. (Planning Commission Resolution No. 98 -05 is made a part of these minutes by attachment.) The Council will consider the recommendation at its November 23, 1998 meeting. The applicant must be present. Major changes to the application as reviewed by the Commissioners will require that the application be returned to the Commission for reconsideration. APPLICATION NO. 98023 - SPEEDWAY SUPERAMERICA LLC - PRELIMINARY PLAT APPLICATION NO. 98024 - SPEEDWAY SUPERAMERICA LLC - SITE AND BUILDING PLAN /SPECIAL USE PERMIT Chair Willson introduced Application No. 98023, a request for preliminary plate approval to transfer property from the Regal Road Addition to the SuperAmerica (SA) site, and Application No. 98024, a request for approval of site and building plans and a special use permit, both submitted by Speedway SuperAmerica LLC. Both applications were filed on 10 -22 -98 requiring Council action by 12 -21 -98 (60 days). Mr. Warren suggested and the Commissioners agreed to consider both SuperAmerica applications concurrently and to conduct a combined public hearing on Application Nos. 98023 and 98024. APPLICATION NO. 98023 Mr. Warren presented the staff report using transparencies to describe the location of the property to be transferred through mutual negotiations from the Regal Road Addition to the Super America site at 6545 Wet River. The purpose of the transfer is to "square out" the SuperAmerica site to accommodate a proposed car wash expansion (Application No. 98024). (See attached Planning Commission Information Sheet, application No. 98023, dated 11- 12 -98.) This preliminary plat includes a 25'x 320'strip of land added to the south portion of the SA site, and a 14' x 75' strip of land added to the west ortion of the 'te Warren noted that the resulti R Road SA s� Mr. W p g g Development Addition plat must be filed prior to filing of the expanded SA plat. Drainage and utility easements are shown on the plat. Watershed Commission review is not necessary for this expanded plat. Mr. Warren stated the preliminary plat appears to be in order and recommended approval subject to 4 conditions outlined in the staff report. A public hearing on the application has been properly noticed. Chair Willson called for questions from the Commissioners. Commissioner Boeck inquired about the location of the utility easements on Lot 1 and whether access has been agreed upon. Mr. Warren pointed out the easements on the drawings and stated that an access agreement has been formalized between SA and the Centres Group. Commissioner Nelson asked about the status of Watershed Commission approval for the theater property. Mr. Warren explained that both the above ground pond and the underground system were approved by the Council, however, the Watershed continues to analyze the feasibility of the underground system. He also noted the Centres Group is moving ahead with the above ground pond plan for drainage on 11 -12 -98 3 its property and recent plans reflect the anticipated transfer of the small parcels to the SuperAmerica site. APPLICATION NO. 98024 Mr. Warren presented the staff report using overhead transparencies to describe the location and site and building plans for construction of a 24' x 36' freestanding car wash addition to the existing SA site, 6545 West River Road. (See attached Planning Commission Information Sheet, application No. 98024, dated 11- 12 -98.) This car wash site, zoned C -2 (Commerce) is made possible by the transfer of small portions of property from the Regal Road Addition property described in Application No. 98023. Gasoline stations and auto washes are special uses in the C -2 zoning district and car wash operations are allowed in a separate building constructed with materials including exterior treatment comparable to the principal building. Circulation to the car wash building is from east to west on the south side of the exiting building and includes a stacking lane and a bypass lane. One -way directional signage is recommended to avoid site congestion. A new shared access to SA and the future restaurant site on the west has been installed. A right turn only access is located easterly of the new shared access. Parking modifications on the site include a landscape /trash enclosure /parking area to the west and north of the car wash. Parking requirements exceed the minimum required. Bollards constructed on the south property line will separate SA property from the theater property and obstruct shortcuts across the property line. Little change is made in the existing grading, drainage, and utilities on the site. Mr. Warren noted, however, that the required 15' green strip must be provided in the area between the two accesses from 66th Avenue. Watershed Commission review is not necessary as the site is less than 5 acres in area. Additional landscaping on the site is described in the landscape plan and exceeds the required points. Exterior building materials will be brick to match the existing building. Solid opaque gates on the north side will enclose the trash area. Mr. Warren referred to a 10 -29 -98 letter from the applicant's attorney that explains how they believe their proposal meets the special use standards (Sec. 35 -220, Subd. 2). It was noted that the car wash operations requires no variances and completely conforms to applicable City regulations. The staff concurs with the comments made supporting approval of the special use permit and concludes that the standards can be met provided other conditions imposed by the City are met. Based on these conclusions, Mr. Warren recommended approval of the site and building plans and the special use permit requested under Application No. 98024, subject to conditions outlined in the staff report. A public hearing on the application, properly noticed, is scheduled at this meeting. Chair Willson called for questions from the Commissioners. Mr. Warren respond to questions regarding the shared access and median on 66th Avenue, delineated the new property lines, updated the status of the ponding area for the theater parcel, pointed out the parking spaces on the SA site and the exit from the car wash, and reiterated the purpose of the bollards on the site. PUBLIC HEARING - APPLICATION NOS. 98023 AND 98024 There was a motion by Commissioner Boeck, seconded by Commissioner Nelson, to open the public hearing on Application Nos. 98023 and 98024 at 8:57 p.m. The motion passed unanimously. 11 -12 -98 4 Chair Willson called for comments from the public. Mr. Michael Cronin, Michael Cronin & Associates, Minneapolis MN, representing the applicant, introduced Messrs. Roman Mueller and Gayle Beldon, who are available to answer questions. Mr. Cronin requested approval of the Applications and accepted the City's conditions attached to each application. Commissioner Reem inquired what the car wash operating hours will be. The car wash will be open during the same hours as the station store. In response to Commissioner Boeck's question, SA store manager Beldon stated he was not acquainted with the manager of the new Holiday Store across the street. Mr. Cronin expressed appreciation to the City staff for their cooperation and patience. Chair Willson called for additional questions from the public. No other individuals from the public appeared before the Planning Commission during the public hearing on Application Nos. 98023 and 98024. There were no further questions from the Commissioners. CLOSE PUBLIC HEARING - APPLICATION NOS. 98023 AND 98024 There was a motion by Commissioner Newman, seconded by Commissioner Reem, to close the public hearing at 9 p.m. The motion passed unanimously. ACTION TO RECOMMEND APPROVAL OF APPLICATION NO. 98023 - SPEEDWAY SUPER AMERICA LLC There was a motion by Commissioner Boeck, seconded by Commissioner Newman, to recommend to the Council that it approve Application No. 98023, a preliminary plat request submitted by Speedway Super America LLC, for approval to transfer property from Regal Road Addition to the SuperAmerica site at 6545 West River Road, subject to the following conditions: 1. The final plat is subject to review and approval by the City Engineer. 2. The final plat is subject to the provisions of Chapter 15 of the City Ordinances. 3. Appropriate drainage and utility easements shall be shown over the proposed Lot 1, Block 1, to protect existing sanitary sewer in a manner acceptable to the City Engineer. 4. Appropriate driveway and cross access easements indicating the relationship between the proposed Lots 1 and 2 shall be filed with the final plat for this property. Voting in favor: Chair Willson, Commissioners Boeck, Nelson, Newman, and Reem. The motion passed unanimously. ACTION T O RECOMMEND APPROVAL OF APPLICATION NO. 98024 - SP EEDWAY SUPERAMERICA LLC, There was a motion by Commissioner Boeck, seconded by Commissioner Nelson, to recommend to the Council that it approve Application No. 98024 submitted by Speedway SuperAmerica LLC 11 -12 -98 5 for site and building plan approval and a special use permit to construct a freestanding car wash addition to the existing Super America site at 6545 West River Road, subject to the following conditions: 1. Building plans are subject to review and approval by the Building Official with respect to applicable codes prior to the issuance of permits. 2. Grading, drainage and utility plans are subject to review and approval by the City Engineer prior to the issuance of permits. J. A site performance agreement and supporting financial guarantee in an amount to be determined based on cost estimates shall be submitted prior to the issuance of permits to assure completion of all site improvements. 4. Any outside trash disposal facilities or on ground mechanical equipment shall be appropriately screened from view. 5. An underground irrigation system shall be installed and maintained in all landscaped i areas to facilitate site maintenance. 6. Plan approval is exclusive of all signery which is subject to Chapter 34 of the city ordinances. 7. B -612 curb and gutter shall be provided around all parking and driving areas in accordance with requirements of the City's zoning ordinance. 8. A special use permit is granted to Speedway SuperAmerica LLC for the construction of a car wash in conjunction with its already existing gasoline service station/convenience store. Any expansion or alteration of the use shall require an amendment to the special use permit granted. 9. The special use permit is subject to all applicable codes, ordinances and regulations. Any violation thereof shall be grounds for revocation. 10. The plans shall be modified prior to the issuance of building permits to show a 15 ft. green strip along the 66th Avenue right -of -way in accordance with the requirements of the zoning ordinance. 11. Appropriate one way directional signery shall be provided at the southeast and southwest corners of the site to indicate one way traffic. 12. The final plat comprehended under Planning Commission Application No. 9802' be approved by the City Council and filed with Hennepin County prior to the issuance of building permits. 13. The applicant shall provide appropriate erosion and sediment control devices on the site during construction as approved by the City Engineering Department. 11 -12 -98 6 L 14. The property owner shall enter into an easement and agreement for maintenance and inspection of utility and storm drainage systems prior to the issuance of permits. 15. The applicant shall submit an as built survey of the property, improvements, and utility service lines prior to release of the performance guarantee. Voting in favor: Chair Willson, Commissioners Boeck, Nelson, Newman, and Reem. The motion passed unanimously. The Council will consider the recommendations for Application Nos. 98023 and 98024 at its November 23, 1998 meeting. The applicant(s) must be present. Major changes to the application(s) as reviewed by the Commissioners will require that the application(s) be returned to the Commission for reconsideration. Chair Willson recessed the meeting at 9 p.m. and reconvened at 9:15 p.m. APPLICATION NO. 98025 - BROOKDALE CORNER LLC Chair Willson introduced Application No. 98025, submitted by Brookdale Corner LLC, a request for preliminary plat approval to combine three parcels of land into a single parcel to be known as Lot 1, Block 1, Brookdale Corner Addition. The land includes the site of the Westbrook Mall and the Dayton's Home Store located at the southwest corner of Cty. Rd. 10 and Xerxes Avenue North. The applicant wishes to file the plat before the end of 1998. This application was filed on 10 -22 -98 requiring City Council action by 12 -21 -98 (60 days.). Mr. Warren presented the staff report using a transparency to show the location of the parcels to be combined. (See Planning Commission Information Sheet, Application No. 98025, attached dated 11- 12 -98.) These properties are zoned C -2 (Commerce) and are currently the site of the Westbrook Mall and the Dayton's Home Store. Under Section 35 -540 of the zoning ordinance, multiple contiguous adjacent parcels of land shall be combined into a single parcel when it is proposed to serve a single development use and is under common ownership. The purpose of this combination requested by Brookdale Corner LLC who recently acquired the parcels is to clear the sites for constriction a Cub Food Store and other retail operations. A separate application for development plans needs to come before the Commission and Council for consideration and approval prior to construction. The 12.859 acre plat will be known as Lot 1, Block 1, Brookdale Corner Addition and includes dedication for Brooklyn Boulevard right -of -way and Xerxes Avenue North right -of -way. Additional right -of -way for County Rd 10 improvements is also necessary. Watershed commission review of the application is probably not required at this time, however, the City Engineer in reviewing the plat will confirm this. Mr. Warren stated the proposed preliminary plat appears to be in order and recommended approval of the application subject to conditions outlined in the staff report including condition No. 4 added during the presentation. A public hearing, properly noticed, is schedule at this meeting. Chair Willson called for questions from the Commissioners. 11 -12 -98 7 In response to Chair Willson's inquiry, Mr. Warren stated that to date Brookdale Corner LLC has not been successful in acquiring the adjacent parcel on which an office building is located, and noted that parcel is owned by a different company. Commissioner Reem asked whether Hirshfield's is included in the combined parcel. Mr. Warren indicated that it is included however that building will not be demolished; only the Dayton's Home Store and the Westbrook Mall main building are scheduled for demolition. Mr. Warren responded to questions from Commissioner Boeck regarding the specifics of the Tract descriptions, utility connections, and other easements that may be required. Commissioner Nelson questioned the width of the access to the site from 56th Avenue. Mr. Warren indicated it is likely 24 to 30 feet wide. PUBLIC HEARING - APPLICATION NO. 98025 There was a motion by Commissioner Nelson, seconded by Commissioner Boeck, to open the public hearing on Application No. 98025 at 9:32 p.m. The motion passed unanimously. Chair Willson called for comments from the public. Mr. John Johannson, Welsh Companies, Minneapolis, MN, representing the applicant, requested approval of the preliminary plat in order that the final plat may be filed by the end of the year for tax purposes. He indicated that in consultation with City staff, additional required rights of way and dedications will be included in the final plat. Mr. Johannson briefly commented on the future plans for the re- development, answered questions on those plans, and indicated an application will be made in January/February 1999. He noted that design plans will take into consideration possible future acquisition of the parcel containing the office building. Chair Willson called for additional comments from the P ublic. No other individuals appeared before the Commission at the public hearing on Application No. 98025. CLOSE PUBLIC HEARING There was a motion by Commissioner Reem, seconded by Commissioner Newman, to close the public hearing at 9:41 T unanimously. m. he motion asked a P P P Chair Willson called for additional questions from the Commissioners. Commissioner Boeck referred to the comments contained in City Engineer Scott Brink's 11 -09 -98 memorandum regarding site improvements. Mr. Warren indicated those issues will be covered in the site plan application. ACTIO TO RECOM APPROVAL OF APPLICATION NO. 9 8025 - BROOKDALE CORNER LLC There was a motion by Commissioner Nelson, seconded by Commissioner Reem, to recommend to the Council that it approve Application No. 98025, submitted by Brookdale Corner LLC, a request for preliminary plat approval to combine 3 parcels of land into a single parcel, comprised of the site of the current Westbrook Mall and the Dayton's Home Store, located at the southwest corner of Cty Rd 10 and Xerxes Avenue North, subject to the following conditions: 1. The final plat is subject to review and approval by the City Engineer. 2. The final plat is subject to the provisions of Chapter 15 of the City Ordinances. is 11 -12 -98 8 J. The preliminary and final plats shall be modified to indicate the proper underlying legal description of Tract A, RLS 1235 over the area that encompasses the Westbrook Mall. 4. Additional right -of -way for County Road 10 improvements„ shall be included in the final plat consistent with the City Engineer's recomendations. Voting in favor: Chair Willson, Commissioners Boeck, Nelson, Newman, and Reem. The motion passed unanimously. The Council will consider the recommendation at its November 23, 1998 meeting. The applicant must be present. Major changes to the application as reviewed by the Commissioners will require that the application be returned to the Commission for reconsideration. APPLICATION NO. 98026 - CSM CORPORATION Chair Willson introduced Application No. 98026, submitted by CSM Corporation, a request for site and building plan approval for an office building with a drive up facility for a credit union, located on Northway Drive, north of Cty Rd 10. This application was filed on 10 -29 -98 requiring City Council action by 12 -28 -98 (60 days). Mr. Warren presented the staff report and used transparencies to describe the location of the property and site and building plans. (See attached Planning Commission Information Sheet, Application No. 98026, dated 11- 12 -98.) The property this site is located on is zoned C -lA (Service/Office-no height limitation). This new building along with two existing one -story office buildings are part of a 5- building office complex approved in 1986, reconfigured in 1990, and further modified in 1993. Because the most recent modification did not result in building construction, the applicant now proposes to return to the 1986 configuration and plans to construct a 6000 sq. ft. building on the easterly foundation already installed. Mr. Warren stated that many required site improvements have already been installed based on the 1986 plan. He reviewed the access and parking plan for the site, the established utilities and drainage patterns, and described the landscape plan. The building exterior and east and west side canopies will be face bricked to match the existing buildings. The lighting plan meets the standards of the zoning ordinance. Trash facilities should be shown on the plan. Mr. Warren also noted that the existing trash container for the existing buildings must be screened. Based on the staff analysis of the site and building plans, Mr. Warren stated the application is in order and recommended approval subject to conditions outlined in the staff report. A public hearing is not required on this application. Chair Willson called for questions from the Commissioners. Commissioner Reem inquired about responsibility for maintenance of the fence on the north side of the property. Mr. Warren reported that CSM Corporation, owner of the existing buildings, is responsible for the fence and site maintenance. Mr. Warren described the various parcels and buildings on the property in response to Commissioner Boeck's question. Commissioner Newman inquired about plans for the remaining two foundations. The applicant stated the 4th and 5th buildings will be constructed upon market demand. Mr. Warren explained that the gaps in the fence were established at the street endings and 11 -12 -98 9 allow for pedestrian access. It was noted that the site does not have room for vehicle sales similar to those conducted at other credit unions under administrative permit. The NSP employees credit union will occupy the new building. The Commissioners interposed no objections to approval of Application No. 98026. ACTION TO RECOMMEND APP_ R_OVAL, OF APPLICATION NO. 98026 - CSM CORPORATION There was a motion by Commissioner Boeck, seconded by Commissioner Nelson, to recommend to the Council that it approve Application No. 98026, a request submitted by CSM Corporation, for site and building plan approval for construction of a 6000 sq. ft. office building with a drive up facility for a credit union, on Northway Drive, north of County Road 10, subject to the following conditions: 1. The building plans are subject to review and approval by the Building Official with respect to applicable codes prior to the issuance of permits. 2. Grading, drainage, and utility plans are subject to review and approval by the City Engineer prior to the issuance of permits. 3. A site performance agreement and financial guarantee in an amount to be determined based on cost estimates shall be provided prior to the issuance of building permits for this project. 4. An outside trash disposal facilities and roof to or on around mechanical equipment Y p p b shall be appropriately screened from view. 5. The building is to be equipped with an automatic fire extinguishing system to meet NFPA standards and shall be connected to a central monitoring device in accordance with Chapter 5 of the city ordinances. 6. Underground irrigation systems shall be installed in all landscaped areas to facilitate site maintenance. 7. Plan approval is exclusive of all signery which is subject to Chapter 34 of the city ordinances. 8. B -612 curb and gutter shall be provided around all parking and driving areas. 9. The applicant shall provide an as built survey of the property, improvements, and utility service lines prior to the release of the performance guarantee. 10. The applicant shall provide appropriate erosion and sediment control devices on the site during construction as approved by the city engineering department. Voting in favor: Chair Willson, Commissioners Boeck, Nelson, Newman, and Reem. The motion passed unanimously. 11 -12 -98 10 The Council will consider the recommendation at its November 23, 1998 meeting. The applicant must be present. Major changes to the application as reviewed by the Commissioners will require that the application be returned to the Commission for reconsideration. OTHER BUSINESS FUTURE MEETING DATES The next meeting of the Planning Commission will be on Thursday, December 3, 1998. A joint meeting with the Council is scheduled for Thursday, December 17, 1998. The 1999 meeting schedule will be distributed to the Commissioners in December. COMMISSION MEMBERSHIP Information will be forwarded to the Council regarding reappointments of Commissioners whose terms expire 12 -31 -98 and for appointment of a replacement for Commissioner Nelson, who was elected to the position of Councilmember effective 01- 01 -99. ADJOURNMENT There was a motion by Commissioner Boeck, seconded by Commissioner Newman, to adjourn the Planning Commission meeting. The motion passed unanimously. The meeting adjourned at 10:12 p.m. i Chair Recorded and transcribed by: Arlene Bergfalk Timesaver Off Site Secretarial, Inc. 11 -12 -98 11 i City Council Agenda Item No. 8a i I MEMORANDUM DATE: November 18, 1998 TO: Michael J. McCauley, City Manager FROM: Charlie Hansen, Finance Director C N SUBJECT: Resolution Awarding the Sale of $1,085,000 General Obligation Improvement Bonds, Series 1998A; Fixing Their Form and Specifications; Directing Their Execution and Delivery; and Providing for their Payment Resolution Awarding the Sale of $1,585,000 General Obligation State Aid Road Refunding Bonds, Series 199813; Fixing Their Form and Specifications; Directing Their Execution and Delivery; and Providing for their Payment The first of these resolutions awards the sale of improvement bonds to be supported by special assessments on benefited property. Proceeds of the sale will reimburse the City for the cost of the street and storm drainage construction done as part of the 1998 Neighborhood Street Improvement Program. The second resolution awards the sale of bonds which will provide for an advance refunding of State Aid Road Bonds, Series 1991B. An allocation of Municipal State Aid for Streets revenue supports these bonds. Refunding these bonds is expected to result in interest savings of about $20,000 per year from 2001 through 2006. Proposals will be opened on November 23, 1998 at 10:30 A.M. at the offices of Springsted Incorporated. The resolutions to officially award the sale of the bonds will be prepared by bond counsel after the opening and will be handed out at the City Council meeting. A representative of the city's financial advisor, Springsted Inc. will be present at the City Council meeting to answer any questions. Final approval will depend upon City Council action. Proceeds of the bond sale should be received by the City by the end of December. Moody's Investors Service has confirmed a rating of Al on this bond issue and confirmed the Al rating on the City's previous bond issues. A copy of the rating is attached. Also attached is a copy of the Official Statement for these bond issues, prepared by Springsted Inc. and the City's staff. ♦ 1 ­1 i V .. -- 14 1161 iSVUUlV44.VVVV ! rage 1 OI C ATTN: Charles R. Hansen Brooklyn Center I RODY'S ASSIGNS Al RATING TO BROOKLYN CENTER, MN GENERAL OBLIGATION BONDS SERIES 1998A AND SERIES 1998B $29.775 MILLION IN DEBT AFFECTED Brooklyn Center (City of) MN Municipality Minnesota Moody's Rating Issue Rating General Obligation Improvement Bonds, Series 1998A Al Sale Amount $1,085,000.00 Expected Sale Date 11/23/98 Rating Description General Obligation Unlimited Tax General Obligation State Aid Road Refunding Bonds, Series 1998E Al Sale Amount $1,585,000.00 Expected Sale Date 11/23/98 Rating Description General Obligation Unlimted Tax YORK, November 18, 1998 -- Moody's has assigned an Al rating to the city Brooklyn Center, MN General Obligation Improvement Bonds, Series 1998A and General Obligation State -Aid Road Refunding Bonds, Series 1998B due to the city's sound economy, its strong financial position which will not be affected by the recent resolution of a tax appeal by the city's largest taxpayer, and above average, but manageable, debt burden. MATURE MINNEAPOLIS SUBURB EXPERIENCING REDEVELOPMENT Moody's expects the city's economy to remain strong due to its favorable location in the economically vibrant twin cities metro area and the ongoing redevelopment initiatives to foster tax base growth. The large taxbase, with a full valuation of $1.1 billion in 1998, experienced declines in the early 1990s due to the depressed commercial and industrial sector, however, in the last few years, assessment values have experienced moderate growth. Recent growth in this service driven economy has included expansion in the city's retail sector. In addition, the city has fostered housing redevelopment initiatives which were funded through the city's Economic Development Authority. The city's wealth levels are above the state average, however, growth during the previous decade has lagged behind that of both Hennepin County (rated Aaa) and the state, reflecting the mature nature of the city. Ample employment opportunities are reflected in extremely low unemployment rates, which at 1.8% in July 1998, were well below both state (2.1%) and national (4.7%) levels. STRONG FINANCES CHARACTERIZED BY AMPLE RESERVES *dy's expects the city's financial position to remain strong due to a history of sound financial management as demonstrated by operating results that consistently outperform conservatively budgeted figures. The city has consistently exceeded its fund balance policy which calls for General Fund reserves for working capital equal to 45% of the subsequent year's budget. In 1997, the city's General Fund balance for both working capital and n.; 11uvu16144.uvuu in.,wwiJ f4ytl L VI G undesignated purposes, at $6.5 million in 1997, equaled 54% of General Fund revenues, and an operating surplus of between $200,000 and $400,000 is projected for year end 1998. The city regularly uses amounts in excess of 0 ose levels required by the fund balance policy for pay -as- you -go capital ojects. While the city is levying the maximum under state imposed levy imits, it has not needed to make structural adjustments to operate under these limits and does not plan to draw upon the General Fund in 1999. RESOLUTION OF TAX APPEAL BY BROOKDALE MALL WILL NOT HURT CITY'S FINANCIAL POSITION A tax appeal brought by the former owners of the Brookdale Center for the years 1992 through 1996 was resolved in March 1998. The city's share of the settlement equaled $1.1 million and is expected to be deducted from the December 1998 tax settlement. Moody's does not expect that this settlement will hurt the city's financial position, as an amount equal to the settlement has already been reserved in the General Fund in anticipation of the eventual settlement. MANAGEABLE DEBT POSITION CHARACTERIZED BY SIGNIFICANT SUPPORT FROM NON -LEVY SOURCES Moody's expects the city's 4.4% debt burden will remain manageable due to rapid principal amortization of over 80% over ten years, significant support from non -levy sources, and moderate future borrowing needs. Debt service payments account for 16% of 1997 operating expenditures and receive significant support from special assessments, tax increments, and enterprise fund revenues which reduce the impact of debt on the general tax levy. The city expects to issue between $1 million and $1.5 million in debt backed by w cial assessments in the next year. ANALYSTS: Jennifer L. Davis, Analyst, Public Finance Group, Moody's Investors Service Dianne Golub, Senior Credit Officer, Public Finance Group, Moody's Investors Service Nicole Johnson, Director, Public Finance Group, Moody's Investors Service CONTACTS: Journalists: (212) 553 -0376 Research Clients: (212) 553 -1625 Extract of Minutes of Meeting of the City Council of the City of Brooklyn Center, Hennepin County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Brooklyn Center, Minnesota, was duly held in the City Hall in said City on Monday, November 23, 1998, commencing at 7:00 o'clock P.M. The following members were present: and the following were absent: The Mayor announced that the next order of business was consideration of the proposals which had been, received for the purchase of the City's $1,085,000 General Obligation Improvement Bonds, Series 1998A. The City Manager presented a tabulation of the proposals which had been received in the manner specified in the Terms of Proposal for the Bonds. The proposals were as set forth in Exhibit A attached. After due consideration of the proposals, Member then introduced the following written resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption: SJB- 153258 BR291 -185 RESOLUTION NO. A RESOLUTION AWARDING THE SALE OF $1,085,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1998A FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council of the City of Brooklyn Center, Hennepin County, Minnesota (City) as follows: Section 1. Sale of Bonds. 1.01. The proposal of (Purchaser) to purchase $1,085,000 General Obligation Improvement Bonds, Series 1998A (Bonds) of the City described in the Terms of Proposal thereof is hereby found and determined to be a reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price of $ plus accrued interest to date of delivery, for Bonds bearing interest as follows: Year of Interest Year of Interest Maturitv Rate Maturity Rate 2000 2005 2001 2006 2002 2007 2003 2008 2004 2009 True interest cost: 1.02. The sum of $ being the amount proposed by the Purchaser in excess of $1,074,151 will be credited to the Debt Service Fund hereinafter created. The City Manager is directed to deposit the good faith check of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers forthwith. The Mayor and City Manager are directed to execute a contract with the Purchaser on behalf of the City. 1.03. The City will forthwith issue and sell the Bonds pursuant to Minnesota Statutes, Chapter 429 (Act) in the total principal amount of $1,085,000, originally dated December 1, 1998, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R -1, upward, bearing interest as above set forth, and maturing serially on February 1 in the years and amounts as follows: SJB- 153258 B 8291 -185 Year Amount Year Amount 2000 $120,000 2005 $105,000 2001 120,000 2006 105,000 2002 115,000 2007 100,000 2003 115,000 2008 100,000 2004 110,000 2009 95,000 1.04. Optional Redemption. The City may elect on February 1, 2005, and on any day thereafter to prepay Bonds due on or after February 1, 2006. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. 1.05. Term Bonds. (To be completed if Term Bonds are requested by the Purchaser.) Section 2. Registration and Payment. 2.01. ReOstered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 2.02. Dates: Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing August 1, 1999, to the registered owners of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not that day is a business day. 2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. SJB- 153258 B 8291 -185 (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improver or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes and payments so made to registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g) Taxes. Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds, sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated. Lost. Stolen or Destroved Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of SJB- 153258 BR291 -185 the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) not more than 60 and not less than 30 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 2.04. Appointment of Initial Registrar. The City appoints , Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Finance Director must transmit to the Registrar monies sufficient for the payment of all principal and interest then due. 2.05. Execution. Authentication and Delivery. Bonds will be prepared under the direction of the City Manager and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that all signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of any Bond, that signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. SJB- 153258 B R291 -185 When the Bonds have been so prepared, executed and authenticated, the City Finance Director will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3. Form of Bond. 3.01. The Bonds will be printed or typewritten in substantially the following form: [Face of the Bond] No. R- $ UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF BROOKLYN CENTER GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 1998A Date of Rate Maturity Original Issue CUSIP December 1, 1998 Registered Owner: Cede & Co. The City of Brooklyn Center, Minnesota, a duly organized and existing municipal corporation in Hennepin County, Minnesota (City), acknowledges itself to be indebted and for value received hereby promises to pay to the Registered Owner specified above or registered assigns, the principal sum of $ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable February 1 and August 1 in each year, commencing August 1, 1999, to the person in whose name this Bond is registered at SJB- 153258 BR291 -185 i the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by , Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on February 1, 2005, and on any day thereafter to prepay Bonds due on or after February 1, 2006. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify Depository Trust Company (DTC) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. The City Council has designated the issue of Bonds of which this Bond forms a part as "qualified tax exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the Code) relating to disallowance of interest expense for financial institutions and within the $10 million limit allowed by the Code for the calendar year of issue. Additional provisions of this Bond are contained on the reverse hereof and such provisions for all purposes have the same effect as though fully set forth in this place. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Brooklyn Center, Hennepin County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. Dated: CITY OF BROOKLYN CENTER, MINNESOTA (Facsimile) Facsimile City Manager Mayor SJB- 153258 B R291 -185 CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. By Authorized Representative [Reverse of the Bond] This Bond is one of an issue in the aggregate principal amount of $1,085,000 all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate,'all issued pursuant to a resolution adopted by the City Council on November 23, 1998 (the Resolution), for the purpose of providing money to defray the expenses incurred and to be incurred in making local improvements, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Chapter 429, and the principal hereof and interest hereon are payable primarily from special assessments against property specially benefitted by local improvements, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency in special assessments pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing, upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. 51B- 153258 BR291 -185 IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota, to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation of indebtedness. The following abbreviations, when used in the inscription on the face of this Bond, will be constructed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT Custodian in common (Cult) (Minor) TEN ENT -- as tenants under Uniform Gifts or by entireties Transfers to Minors JT TEN -- as joint tenants with right of survivorship and Act . . . . . . .. . . . . �. not as tenants in common State Additional abbreviations may also be used though not in the above list. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. SJB- 153258 BR291 -185 Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ( "STAMP "), the Stock Exchange Medallion Program ( "SEMP "), the New York Stock Exchange, Inc. Medallion Signatures Program ( "MSP ") or other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Bond • Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Signature of Date of Registration Registered Owner Officer Registrar Cede & Co. Federal ID #13- 2555119 3.02. The City Manager is directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and to cause the opinion to be printed on or accompany each Bond. SJB- 153258 BR291 -185 Section 4. Pavment: Securitv: Pledges and Covenants. 4.01. (a) The Bonds are payable from the Improvement Bonds, Series 1998A Debt Service Fund (Debt Service Fund) hereby created, and the proceeds of special assessments (Assessments) levied or to be levied for the improvements described in the resolution authorizing the sale of the Bonds (Improvements) financed by the Bonds are hereby pledged to the Debt Service Fund. If a payment of principal or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the City Finance Director is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for the advances out of the proceeds of Assessments when collected. There is appropriated to the Debt Service Fund (i) capitalized interest financed from Bond proceeds, if any, (ii) any amount over the minimum purchase price paid by the Purchaser, and (iii) the accrued interest paid by the Purchaser upon closing and delivery of the Bonds. (b) The proceeds of the Bonds, less the appropriations made in paragraph (a), together with any other funds appropriated for the Improvements and Assessments collected during the construction of the Improvements will be deposited in a separate construction fund (which may contain separate accounts for each Improvement) to be used solely to defray expenses of the Improvements and the payment of principal and interest on the Bonds prior to the completion and payment of all costs of the Improvement. Any balance remaining in the construction fund after completion of the Improvements may be used to pay the cost in whole or in part of any other improvement instituted under the Act. When the Improvements are completed and the cost thereof paid, the construction account is to be closed and subsequent collections of Assessments for the Improvements are to be deposited in the Debt Service Fund. 4.02. It is hereby determined that the Improvements will directly and indirectly benefit abutting property, and the City hereby covenants with the holders from time to time of the Bonds as follows: (a) The City has caused or will cause the Assessments for the Improvements to be promptly levied so that the first installment will be collectible not later than 1999 and will take all steps necessary to assure prompt collection, and the levy of the Assessments is hereby authorized. The City Council will cause to be taken with due diligence all further actions that are required for the construction of each Improvement financed wholly or partly from the proceeds of the Bonds, and will take all further actions necessary for the final and valid levy of the Assessments and the appropriation of any other funds needed to pay the Bonds and interest thereon when due. (b) In the event of any current or anticipated deficiency in Assessments, the City Council will levy ad valorem taxes in the amount of the current or anticipated deficiency. (c) The City will keep complete and accurate books and records showing: receipts and disbursements in connection with the Improvements, Assessments levied SJB- 153258 BR291 -185 therefor and other funds appropriated for their payment, collections thereof and disbursements therefrom, monies on hand and, the balance of unpaid Assessments. (d) The City will cause its books and records to be audited at least annually and will furnish copies of such audit reports to any interested person upon request. 4.03. It is hereby determined that the estimated collections of Assessments and interest thereon for payment of principal and interest on the Bonds will produce at least five percent in excess of the amount needed to meet when due, the principal and interest payments on the Bonds and that no tax levy is needed at this time. 4.04. The City Manager is authorized and directed to file a certified copy of this resolution with the Taxpayer Services Division Manager of Hennepin County and to obtain the certificate required by Minnesota Statutes, Section 475.63. Section 5. Authentication of Transcript. 5.01. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished, may be deemed representations of the City as to the facts stated therein. 5.02. The Mayor and City Manager are authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. Section 6. Tax Covenant. 6.01. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the Code), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. 6.02. (a) The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of SJB- 153258 BR291 -185 s the Code, including without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued in calendar year 1998) exceed the small- issuer exception amount of $5,000,000. (b) For purposes of qualifying for the small- issuer exception to the federal arbitrage rebate requirements, the City finds, determines and declares that the aggregate face amount of all tax- exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities of the City) during the calendar year in which the Bonds are issued is not reasonably expected to exceed $5,000,000, within the meaning of Section 148(f)(4)(C) of the Code. 6.03. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 6.04. In order to qualify the Bonds as "qualified tax- exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (b) the City hereby designates the Bonds as "qualified tax- exempt obligations" for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax- exempt obligations (other than any private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 1998 will not exceed $10,000,000; and (d) not more than $10,000,000 of obligations issued by the City during calendar year 1998 have been designated for purposes of Section 265(b)(3) of the Code. 6.05. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. • SIB- 153258 BR291 -185 i Section 7. Book -Entry Svstem: Limited Obligation of Citv. 7.01. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns (DTC). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC. 7.02. With respect to Bonds registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (Participants) or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Bond Registrar,) of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, or interest on the Bonds. The City, the Bond Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Bond Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Bond Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Bond Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Manager of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and upon receipt of such a notice, the City Manager will promptly deliver a copy of the same to the Bond Registrar and Paying Agent. SIB- 153258 B R291 -185 7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (Representation Letter) which shall govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Bond Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation letter with respect to the Bond Registrar and Paying Agent, respectively, to be complied with at all times. 7.04. Transfers Outside Book -Entry Svstem. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Bond Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 7.05. Pavments to Cede & Co. Notwithstandin g any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in the Representation Letter. Section 8. Continuing Disclosure. 8.01. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. 8.02. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. SJB- 153258 B R291 -185 i The motion for the adoption of the foregoing resolution was duly seconded by Member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. SJB- 153258 B 8291 -185 STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) SS. CITY OF BROOKLYN CENTER ) I, the undersigned, being the duly qualified and acting City Manager of the City of Brooklyn Center, Hennepin County, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on November 23, 1998 with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of $1,085,000 General Obligation Improvement Bonds, Series 1998A of the City. WITNESS My hand officially as such City Manager and the corporate seal of the City this day of , 1998. City Manager Brooklyn Center, Minnesota (SEAL) SJB- 153258 B R291 -185 STATE OF MINNESOTA TAXPAYER SERVICES DIVISION MANAGER'S COUNTY OF HENNEPIN CERTIFICATE AS TO REGISTRATION WHERE NO AD VALOREM TAX LEVY I, the undersigned Taxpayer Services Division Manager of Hennepin County, Minnesota, hereby certify that a resolution adopted by the City Council of the City of Brooklyn Center, Minnesota, on November 23, 1998, relating to General Obligation Improvement Bonds, Series 1998A, the amount of $1,085,000, dated December 1, 1998, has been filed in my office and said obligations have been registered on he register of obligations in my office. WITNESS My hand and official seal this day of .1998. Taxpayer Services Division Manager Hennepin, County, Minnesota (SEAL) Deputy SJB- 153258 BR291 -185 Extract of Minutes of Meeting of the City Council of the City of Brooklyn Center, Hennepin County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Brooklyn Center, Minnesota, was duly held in the City Hall in said City on Monday, November 23, 1998, commencing at 7:00 o'clock P.M. The following members were present: and the following were absent: The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's $ General Obligation State -Aid Road Refunding Bonds, Series 1998B. The City Manager presented a tabulation of the proposals which had been received in the manner specified in the Official Terms of Proposal for the Bonds. The proposals were as set forth in Exhibit A attached: After due consideration of the proposals, Member then introduced the following written resolution, the reading of which was dispensed with by unanimous consent and moved its adoption: In accordance with the official Terms of Proposal the following adjustments were made: SJB- 153271 B 8291 -185 Principal Amount: Maturities: Minimum Purchase Price: RESOLUTION NO. A RESOLUTION AWARDING THE SALE OF $ GENERAL OBLIGATION STATE -AID ROAD REFUNDING BONDS, SERIES 199813; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; PROVIDING FOR THEIR PAYMENT; PROVIDING FOR THE ESCROWING AND INVESTMENT OF THE PROCEEDS THEREOF; AND PROVIDING FOR THE REDEMPTION OF BONDS REFUNDED THEREBY. BE IT RESOLVED By the City Council of the City of Brooklyn Center, Hennepin County, Minnesota (City) as follows: Section 1. Sale of Bonds. 1.01. The proposal of (Purchaser) to purchase $ General Obligation State -Aid Road Refunding Bonds, Series 1998B g g (Bonds) of the City described in the Official Terms of Proposal thereof is determined to be a reasonable offer and is accepted, the proposal being to purchase the Bonds at a price of $ plus accrued interest to date of delivery, for Bonds bearing interest as follows: Year off Interest Year of Interest Maturity Rate Maturitv Rate 2001 2004 2002 2005 2003 2006 True interest cost: 1.02. The sum of $ being the amount proposed by the Purchaser in excess of $ is credited to the Escrow Account hereinafter created, or designated to pay costs of issuance of the Bonds, as the case may be. The City Manager is directed to deposit the good faith check of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers forthwith. The Mayor and City Manager are • directed to execute a contract with the Purchaser on behalf of the City. SJB- 153271 BR291 -185 1.03. The City will forthwith issue and sell the Bonds pursuant to Minnesota Statutes, Chapter 475 (Act) in the total principal amount of $ , originally dated December 1, 1998, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R -1, upward, bearing interest as above set forth, and maturing serially on April 1 in the years and amounts as follows: Year Amount Year Amount 2001 2004 2002 2005 2003 2006 1.04. Optional Redemption. The City may elect on April 1, 2004, and on any day thereafter to prepay Bonds due on or after April 1, 2005. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 8 hereof) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. Section 2. Reeistration and Pavment. 2.01. ReLyistered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 2.02. Dates: Interest Pavment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on April 1 and October 1 of each year, commencing October 1, 1999, to the registered owners of record as of the close of business on the fifteenth day of the immediately preceding month, whether or not that day is a business day. 2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: SJB- 153271 BR291 -185 (a) Register. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improver or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes, and payments so made to a registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated. Lost. Stolen or Destroved Bonds. If a Bond becomes mutilated or e is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for any Bond destroyed, stolen or lost, upon SJB- 153271 B R291 -185 I the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar an appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) not more than 60 and not less than 30 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of any proceeding for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit i with the place of payment at that time. s 2.04. Appointment of Initial Registrar. The City appoints , Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Finance Director must transmit to the Registrar moneys sufficient for the payment of all principal and interest then due. 2.05. Execution. Authentication and Deliverv. The Bonds will be prepared under the direction of the City Manager and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that all signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of any Bond, that signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in i office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized SJB- 153271 B 8291 -185 representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Finance Director will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3. Form of Bond. 3.01. The Bonds will be printed or typewritten in substantially the following form: [Face of the Bond] No. R- UNITED STATES OF AMERICA $ STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF BROOKLYN CENTER GENERAL OBLIGATION STATE -AID ROAD REFUNDING BOND, SERIES 1998B Date of Rate Maturitv Original Issue CUSIP December 1, 1998 Registered Owner: Cede & Co. The City of Brooklyn Center, Minnesota, a duly organized and existing municipal corporation in Hennepin County, Minnesota (City), acknowledges itself to be indebted and for value received promises to pay to the Registered Owner specified above or registered assigns, the principal sum of $ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable April 1 and October 1 in each year, SIB- 153271 BR291 -185 commencing October 1, 1999, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by . Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on April 1, 2004, and on any day thereafter to prepay Bonds due on or after April 1, 2005. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify Depository Trust Company (DTC) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. The City Council has designated the issue of Bonds of which this Bond forms a part as "qualified tax exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the Code) relating to disallowance of interest expense for financial institutions and within the $10 million limit allowed by the Code for the calendar year of issue. Additional provisions of this Bond are contained on the reverse hereof and such provisions for all purposes have the same effect as though fully set forth in this place. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Brooklyn Center, Hennepin County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. Dated. CITY OF BROOKLYN CENTER, MINNESOTA • (Facsimile) (Facsimile) City Manager Mayor SIB - 153271 BR291 -185 CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. By Authorized Representative [Reverse of the Bond] This Bond is one of an issue in the aggregate principal amount of $ all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on November 23, 1998 (the Resolution), for the purpose of providing money to refund in advance of maturity and on the Redemption Date, as defined in the Resolution, a portion of certain general obligation bonds of the City, pursuant to and in full conformity with the home rule charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 475.67, Subdivision 13 and Section 162.18. The interest hereon is payable until the Redemption Date, primarily out of the Escrow Account in the City's Refunding Bonds, Series 1998B Debt Service Fund and after the Redemption Date from the City's annual allotments from the State of Minnesota's Municipal State - Aid Street Fund, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing, upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. SJB- 153271 BR291 -185 i The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter of the City and the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation of indebtedness. The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT Custodian in common (Cust) (Minor) TEN ENT -- as tenants under Uniform Gifts or by entireties Transfers to Minors JT TEN -- as joint tenants with right of survivorship and Act ... . . ... .. . . not as tenants in common (State) Additional abbreviations may also be used though not in the above list. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: SJB- 153271 BR291 -185 Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ( "STAMP "), the Stock Exchange Medallion Program ( "SEMP "), the New York Stock Exchange, Inc. Medallion Signatures Program ( "MSP ") or other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Bond Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Signature of Date of Registration Registered Owner Officer of Registrar Cede & Co. Federal ID #13- 2555119 SJB- 153271 B 8291 -185 3.02. The City Manager is authorized and directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and cause the opinion to be printed on or accompany each Bond. Section 4. Bonds: Securitv: Escrow. 4.01. Funds and Accounts. For the convenience and proper administration of the moneys to be borrowed and repaid on the Bonds and the Refunded Bonds (as defined in the resolution providing for the issuance and sale of the Bonds), and to provide adequate and specific security for the Purchaser and holders from time to time of the Bonds and Refunded Bonds, there is hereby created a special fund to be designated the Refunding Bonds, Series 1998B Debt Service Fund (the Fund) to be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Fund will be maintained in the manner herein specified until all of the Refunded Bonds have been paid and until all of the Bonds and the interest thereon will have been fully paid. There will be maintained in the Fund, two separate accounts, to be designated the Escrow Account and Debt Service Account. (a) Escrow Account. The Escrow Account will be maintained as an Escrow Account (Escrow Account) with in , Minnesota, which is a suitable financial institution within the State, whose deposits are insured by the Federal Deposit Insurance Corporation, whose combined capital and surplus is not less than $500,000 and said financial institution is hereby designated escrow agent (Escrow Agent) for the Escrow Account. All proceeds of the sale of the Bonds will be received by the Escrow Agent and applied to fund the Escrow Account or to pay costs of issuing the Bonds. Proceeds of the Bonds not used to pay costs of issuance are hereby irrevocably pledged and appropriated to the Escrow Account, together with all investment earnings thereon. The Escrow Account will be invested in securities maturing or callable at the option of the holder on such dates and bearing interest at such rates as will be required to provide sufficient funds, together with any cash or other funds retained in the Escrow Account, to pay when due the interest to accrue on each Bond to and including April 1, 2000 (Redemption Date), and to pay when due on the Redemption Date the principal amount of each of the Refunded Bonds then outstanding. From the Escrow Account there will be paid (i) all interest paid on, or to be paid on, or to accrue on, the Bonds to and including the Redemption Date, and (ii) the principal of the Refunded Bonds due by reason of redemption on the Redemption Date. The Escrow Account will be irrevocably appropriated to the payment of the principal of and interest on the Bonds until the proceeds of the Bonds therein are applied to prepayment of the Refunded Bonds. The moneys in the Escrow Account will be used solely for the purposes herein set forth and for no other purpose, except that any surplus in the Escrow Account may be remitted to the City, all in accordance with the Escrow Agreement (hereafter defined) by and between the City and the Escrow Agent. Any moneys remitted to the City upon termination of the Escrow Agreement will be deposited in the Debt Service Account. SJB- 153271 BR291 -185 (b) Debt Service Account. To the Debt Service Account there is hereby pledged and irrevocably appropriated and there will be credited: (i) any balance remitted to the City upon the termination of the Escrow Agreement; (ii) any balance remaining on April 2, 2000, in the Debt Service Fund created by the City Council resolution authorizing the issuance and sale of the Refunded Bonds (Prior Resolution); (iii) any collections of all taxes hereafter levied for the payment of the Bonds and interest thereon; (iv) all investment earnings on funds in the Debt Service Account; (v) amounts allotted or to be allotted to the City from its account in the Municipal State -Aid Street Fund sufficient to pay the principal of and interest on the Bonds as they respectively become due; (vi) accrued interest (if any) received upon delivery of the Bonds to the extent not required to fund the Escrow Account; and (vii) any and all other moneys which are properly available and are appropriated by the City Council to the Debt Service Account. The amount of any surplus remaining in the Debt Service Account when the Bonds and interest thereon are paid will be used as provided in Section 475.61, Subdivision 4 of the Act. 4.02. Findings. It is hereby found and determined that based upon information presently available from the City's financial advisers, the issuance of the Bonds will result in a reduction of debt service cost to the City on the Refunded Bonds, such that the present value of such debt service or interest cost savings (Reduction) is % of the debt service on the Refunded Bonds. The Reduction, after the inclusion of all authorized expenses of refunding in the computation of the effective interest rate on the Bonds, is adequate to authorize the issuance of the Bonds as provided by Minnesota Statutes, Section 475.67, Subdivisions 12 and 13. 4.03. The moneys in the Debt Service Account will be used solely to pay the principal of and interest on the Bonds or any other bonds hereafter issued and made payable from the Fund. No portion of the proceeds of the Bonds will be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (i) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued, and (ii) in addition to the above, in an amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To this effect, any proceeds of the Bonds any sums from time to time held in the Fund (or any other City account which will be used to pay principal and interest to become due on the Bonds) in excess of amounts which under the applicable federal arbitrage regulations may be invested without regard as to yield will not be invested at a yield in excess of the applicable yield restrictions imposed by the arbitrage regulations on such investments after taking into account any applicable temporary periods or minor portion made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Fund will not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be federally guaranteed within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the Code). 4.04. General Obligation Pledge. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City will be and are hereby irrevocably pledged. If the balance in the Escrow Account or Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds and SIB- 153271 BR291 -185 any other bonds payable therefrom, the deficiency will be promptly paid out of monies in the general fund of the City which are available for such purpose, and such general fund may be reimbursed with or without interest from the Escrow Account or from the moneys next received by the City from the construction or maintenance account in the Municipal State -Aid Street Fund which are not required to be paid into the Debt Service Fund. 4.05. It is determined that money allotted to the City from its account in the Municipal State -Aid Street Fund will be available in an amount at least five percent in excess of the amount needed to meet when due, the principal and interest payments on the Bonds and that no tax levy is needed at this time. 4.06. Filing The City Manager is authorized and directed to file a certified copy of this resolution with the Taxpayer Services Division Manager of Hennepin County and to obtain the certificate required by Section 475.63 of the Act. 4.07. Prior Resolution Pledges. The pledges and covenants of the City made by the Prior Resolution relating to the allotment of moneys from the City's account in the state -aid highway fund are restated and confirmed in all respects. The provisions of the Prior Resolution are hereby supplemented to the extent necessary to give full effect to the provisions of this resolution. Section 5. Refunding: FindinLys: Redemption of Refunded Bonds. 5.01. As of the date of delivery of and payment for the Bonds the proceeds of the Bonds, in the amount of $ plus accrued interest on the Bonds less necessary expenses of the issuance of the Bonds (Proceeds), together with other funds (Funds) in the amount of $ are hereby pledged and appropriated and will be deposited in the Escrow Account. 5.02. It is hereby found and determined that the Proceeds and Funds available and appropriated to the Escrow Account will be sufficient, together with the permitted earnings on the investment of the Escrow Account, to pay at maturity or redemption all of the principal of and redemption premium (if any) on the Refunded Bonds. 5.03. Securities purchased from the monies in the Escrow Account will be limited to securities specified in Section 475.67, Subdivision 8 of the Act. Springsted Incorporated, as agent for the City of Brooklyn Center is hereby authorized and directed to purchase for and on behalf of the City of Brooklyn Center and in its name, appropriate securities to fund the Escrow Account. Upon the issuance and delivery of the Bonds, the securities so purchased will be deposited with the Escrow Agent and held pursuant to the terms of the Escrow Agreement and the Resolution. 5.04. The Refunded Bonds maturing on April 1, 2001 and thereafter will be redeemed and prepaid on the Redemption Date. The Refunded Bonds will be redeemed and prepaid in accordance with their terms and in accordance with the terms and conditions set forth in the form of Notice of Call for Redemption attached hereto as Attachment A which terms and conditions are hereby approved and incorporated herein by reference. The Registrar for the Refunded Bonds is SJB- 153271 BR291 -185 • authorized and directed to send a copy of the Notice of Redemption to each registered holder of the Refunded Bonds. 5.05. Escrow Agreement. On or prior to the delivery of the Refunding Bonds, the Mayor and the City Manager are hereby authorized and directed to execute on behalf of the City an escrow agreement (Escrow Agreement) with the Escrow Agent in substantially the form now on file with the City Manager. All essential terms and conditions of the Escrow Agreement including payment by the City of reasonable charges for the services of the Escrow Agent, are hereby approved and adopted and made a part of this resolution, and the City covenants that it will promptly enforce all provisions thereof in the event of default thereunder by the Escrow Agent. Section 6. Authentication of Transcript. 6.01. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished, i will be deemed representations of the City as to the facts stated therein. ! 6.02. The Mayor and City Manager are hereby authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. Section 7. Tax Covenant. 7.01. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the Code), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. 7.02. (a) The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued in calendar year 1998) exceed the small- issuer exception amount of $5,000,000. SJB- 153271 BR291 -185 (b) For purposes of qualifying for the small issuer exception to the federal arbitrage rebate requirements, the City finds, determines and declares that the aggregate face amount of all tax- exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities of the City) during the calendar year in which the Bonds are issued and outstanding at one time is not reasonably expected to exceed $5,000,000, all within the meaning of Section 148(f)(4)(C) of the Code and further finds, determines and declares that the aggregate amount of all tax- exempt bonds (other than private activity bonds) issued by the City in 1998 (the year the Refunded Bonds were issued) did not exceed $5,000,000, and that the average maturity date of the Bonds is not later than the average maturity date of the Refunded Bonds. 7.03. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 7.04. In order to qualify the Bonds as "qualified tax- exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds are not "private activity bonds" as defined in Section 141 of the . Code; (b) the City hereby designates the Bonds as "qualified tax- exempt obligations" for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax- exempt obligations (other than private activity bonds, that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 1998 will not exceed $10,000,000; and (d) not more than $10,000,000 of obligations issued by the City during calendar year 1998 have been designated for purposes of Section 265(b)(3) of the Code. 7.05. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. Section 8. Book -Entry Svstem: Limited ObliLyation of Citv. 8.01. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon initial issuance, the ownership of each such Bond will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns (DTC). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC. SIB - 153271 BR291 -185 8.02. With respect to Bonds registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (Participants) or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Bond Registrar), of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, or interest on the Bonds. The City, the Bond Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Bond Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Bond Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Bond Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Manager of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and upon receipt of such a notice, the City Manager will promptly deliver a copy of the same to the Bond Registrar and Paying Agent. 8.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (Representation Letter) which will govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Bond Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation letter with respect to the Bond Registrar and Paying Agent, respectively, to be complied with at all times. 8.04. Transfers Outside Book -Entry Svstem. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interest, in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Bond Registrar will SJB- 153271 BR291 -185 authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 8.05. Pavments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in the Representation Letter. Section 9. Continuing Disclosure. 9.01. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate will not be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. 9.02. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. The motion for the adoption of the foregoing resolution was duly seconded by Member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. SJB- 153271 B 8291 -185 STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) SS. CITY OF BROOKLYN CENTER ) I, the undersigned, being the duly qualified and acting Manager of the City of Brooklyn Center, Hennepin County, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on November 23, 1998 with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of $ General Obligation State -Aid Road Refunding Bonds, Series 1998B of the City. WITNESS My hand officially as such City Manager and the corporate seal of the City this day of .1998. City Manager Brooklyn Center, Minnesota (SEAL) SJB- 153271 BR291 -185 ATTACHMENT A NOTICE OF CALL FOR REDEMPTION $3,000,000 GENERAL OBLIGATION STATE -AID ROAD BONDS, SERIES 1991B CITY OF BROOKLYN CENTER HENNEPIN COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that, by order of the City Council of the City of Brooklyn Center, Hennepin County, Minnesota, there have been called for redemption and prepayment on APRIL 1, 2000 all outstanding bonds of the City designated as General Obligation State -Aid Road Bonds, Series 1991B, dated September 1, 1991, having stated maturity dates of April 1 in the years 2001 through 2006, both inclusive, totalling $1,550,000 in principal amount, and with the following CUSIP numbers: Year of Maturitv CUSIP 2001 113835 RP9 2002 113835 RQ7 2003 113835 RR5 2004 113835 RS3 2005 113835 RT1 2006 113835 RU8 The bonds are being called at a price of par plus accrued interest to April 1, 2000, on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for payment at the main office of Norwest Bank Minnesota, National Association, in the City of Minneapolis, Minnesota, on or before April 1, 2000, at the following address: Norwest Bank Minnesota, N.A. Attention: Corporate Trust Operations 255 Second Avenue South Minneapolis, MN 55479 -0113 In compliance with the Interest and Dividend Compliance Act of 1983 and Broker Reporting Requirements, the redeeming institution is required to withhold a specified percentage of the principal amount of your holdings redeemed unless they are provided with your social security number or federal employer identification number, properly certified. This Compliance should be fulfilled through the submitting of a W -9 Form which may be obtained at a Bank or other Financial Institution. SJB- 153271 BR291 -185 The Registrar will not be responsible for the selection or use of the CUSIP number, nor is any representation made as to the correctness indicated in the Redemption Notice or on any Bond. It is included solely for convenience of the Holders. Dated: November 23, 1998. BY ORDER OF THE CITY COUNCIL By City Manager City of Brooklyn Center, Minnesota s , SJB- 153271 B 8291 -185 STATE OF MINNESOTA TAXPAYER SERVICES DIVISION MANAGER'S COUNTY OF HENNEPIN CERTIFICATE AS TO REGISTRATION WHERE NO AD VALOREM TAX LEVY I, the undersigned Taxpayer Services Division Manager of Hennepin County, Minnesota, hereby certify that a resolution adopted by the City Council of the City of Brooklyn Center, Minnesota, on November 23, 1998, relating to General Obligation State -Aid Road Refunding Bonds, Series 1998B, in the amount of $ , dated December 1, 1998, has been filed in my office and said obligations have been registered on the register of obligations in my office. WITNESS My hand and official seal this day of .1998. Taxpayer Services Division Manager Hennepin County, Minnesota (SEAL) By Deputy SJB- 153271 BR291 -185 OFFICIAL STATEMENT DATED NOVEMBER 9, 1998 Ratings: Requested from Moody's NEW ISSUES Investors Services In the opinion of Kennedy & Graven, Chartered, Bond Counsel, under existing laws, regulations, rulings and decisions, assuming compliance with the covenants set forth in the Resolutions, the interest on the Bonds is not includable in the gross income of the owners thereof for federal income tax purposes or in taxable net income of individuals, estates or trusts for Minnesota income tax purposes, and is not a preference item for purposes of the computation of the federal alternative minimum tax or the computation of Minnesota alternative minimum tax imposed on individuals, trusts and estates. Interest on the Bonds is includable in the calculation of certain federal and Minnesota taxes imposed on corporations. (For a description of related issues, see "Tax Exemption' herein.) City of Brooklyn Center, Minnesota $1,085,000 General Obligation Improvement Bonds, Series 1998A (the "Series 1998A Bonds ") $1,585,000 General Obligation State -Aid Road Refunding Bonds, Series 19988 (the "Series 19988 Bonds ") (collectively referred to as the "Bonds" or the "Issues ") (Book -Entry Only) Dated Date: December 1, 1998 The Series 1998A Bonds will bear interest payable each February 1 and August 1, commencing August 1, 1999, and will mature February 1 as follows: 2000 $120,000 2003 $115,000 2006 $105,000 2008 $100,000 2001 $120,000 2004 $110,000 2007 $100,000 2009 $ 95,000 2002 $115,000 2005 $105,000 Proposals for the Series 1998A Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds, provided that no serial bond may mature on or after the first mandatory sinking fund redemption date of any term bond. All term bonds shall be subject to mandatory sinking fund redemption and must conform to the maturity schedule set forth above at a price of par plus accrued interest to the date of redemption. The City may elect on February 1, 2005, and on any day thereafter, to prepay the Series 1998A Bonds due on or after February 1, 2006 at a price of par plus accrued interest. The Series 1998B Bonds will bear interest payable each April 1 and October 1, commencing October 1, 1999, and will mature April 1 as follows: 2001 $240,000 2003 $255,000 2005 $280,000 2002 $245,000 2004 $270,000 2006 $295,000 The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Series 1998B Bonds offered for sale. Any such increase or reduction will be in a total amount not to exceed $50,000 and will be made in multiples of $5,000 in any of the maturities. In the event the principal amount of the Series 19988 Bonds is increased or reduced, any premium offered or any discount taken by the successful bidder will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Series 19988 Bonds is increased or reduced. The City may elect on April 1, 2004, and on any day thereafter, to prepay the Series 1998B Bonds due on or after April 1, 2005 at a price of par plus accrued interest. Common To Both Issues The Bonds will be general obligations of the City for which the City pledges its full faith and credit and power to levy direct general ad valorem taxes. Proceeds of the Series 1998A Bonds will be used to finance various improvements within the City. Proceeds of the Series 1998B Bonds will be used to refund in advance of maturity the 2001 through 2006 maturities of the City's $3,000,000 General Obligation State -Aid Road Bonds, Series 1991 B, dated September 1, 1991. The Bonds will be bank - qualified tax - exempt obligations pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, and will not be subject to the alternative minimum tax for individuals. A separate proposal for not less than the amounts shown below must be submitted for each Issue, along with a certified or cashier's check or a Financial Surety Bond payable to the order of the City. Proposals shall specify rates in integral multiples of 51100 or 1/8 of 1 %. Rates must be in ascending order. Award will be made on the basis of True Interest Cost (TIC). Minimum Bid Good Faith Deposit Series 1998A Bonds $1,074,151 $10,850 Series 1998B Bonds $1,573,905 $15,850 The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company ( "DTC "). DTC will act as securities depository of the Bonds. Individual purchases may be made in book entry form only, in the principal amount of $5,000 and integral multiples thereof. Investors will not receive certificates representing their interest in the Bonds purchased. (See "Book Entry System" herein.) The City will name the registrar and pay for registration services. Bonds will be available for delivery at DTC within 40 days following the date of the award. PROPOSALS RECEIVED: November 23, 1998 (Monday) until 10:30 A.M., Central Time AWARD: November 23, 1998 (Monday) at 7:00 P.M., Central Time SPRINGSTED Further information may be obtained from SPRINGSTED Incorporated, Financial Advisor to the Issuer, 85 East Public Finance Advisors Seventh Place, Suite 100, Saint Paul, Minnesota 55101- 2887(651)223 -3000 For purposes of compliance with Rule 15c2 -12 of the Securities and Exchange Commission, this document, as the same may be supplemented or corrected by the City from time to time (collectively, the "Official Statement "), may be treated as an Official Statement with respect to the Bonds described herein that is deemed final as of the date hereof (or of any such supplement or correction) by the City, except for the omission of certain information referred to in the succeeding paragraph. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2 -12. Any such addendum shall, on and after the date thereof, be fully incorporated herein and made a part hereof by reference. By awarding the Bonds to any underwriter or underwriting syndicate submitting a Proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded copies of the Official Statement and the addendum or addenda described in the preceding paragraph in the amount specified in the Terms of Proposal. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a Proposal with respect to the Bonds agrees thereby that if its bid is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. No dealer, broker, salesman or other person has been authorized by the City to give any information or to make any representations with respect to the Bonds, other than as contained in the Official Statement or the Final Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by the City. Certain information contained in the Official Statement and the Final Official Statement may have been obtained from sources other than records of the City and, while believed to be reliable, is not guaranteed as to completeness or accuracy. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE ISSUER SINCE THE DATE THEREOF. References herein to laws, rules, regulations, resolutions, agreements, reports and other documents do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference to the particular document, the full text of which may contain qualifications of and exceptions to statements made herein. Where full texts have not been included as appendices to the Official Statement or the Final Official Statement, they will be furnished on request. TABLE OF CONTENTS Page(s $1,085,000 General Obligation Improvement Bonds, Series 1998A Termsof Proposal ....................................................................... ............... ................ i -iv Schedule of Bond Years ........ ............................... $1,585,000 General Obligation State -Aid Road Refunding Bonds, Series 1998B Termsof Proposal ............................................................................ .......................... vi -ix Scheduleof Bond Years ............................................................. ............................... x IntroductoryStatement ...................................................................... ............................... 1 ContinuingDisclosure ........................................................................ ............................... 1 TheBonds ..................... ........................ ............................... 2 -3 TheSeries 1998A Bonds ................................................................... ............................... 4 TheSeries 1998B Bonds ................................................................... ............................... 4 -5 FutureFinancing ................................................................................ ............................... 5 Litigation............................................................................................ ............................... 5 Legality.............................................................................................. ............................... 5 TaxExemption ................................................................................... ............................... 6 Qualified Tax - Exempt Obligations ...................................................... ............................... 6 Ratings.............................................................................................. ............................... 7 Year2000 Issues ................................................................................ ..................... ......... 7 FinancialAdvisor ............................................................................... ................ ............... 8 Certification.......................................... ............................... 8 CityProperty Values .......................................................................... ............. .................. 9 -10 CityIndebtedness .............................................................................. ............................... 10 -13 City Tax Rates, Levies and Collections .............................................. ............................... 14 Fundson Hand .................................................................................. ............................... 15 CityInvestments .......................................... ................ ....... e......... .................................... 15 -16 General Information Concerning the City ........................................... ............................... 16 -19 Governmental Organization and Services .......................................... ............................... 19 -21 Proposed Form of Legal Opinions ........................................... ............................... Appendix Continuing Disclosure Certificate ............................................. ............................... Appendix II Summary of Tax Levies, Payment Provisions, and Minnesota Real Property Valuation ....................................... ............................... Appendix III Selected Annual Financial Statements ..................................... ............................... Appendix IV ProposalForms ....................................................................... ............................... Inserted i THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: I TERMS OF PROPOSAL $1,085,000 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1998A (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Monday, November 23, 1998, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Proposals may be submitted in a sealed envelope or by fax (651) 223 -3002 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (651) 223 -3000 or fax (651) 223 -3002 for inclusion in the submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale specified above. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner of the Proposal submitted. DETAILS OF THE BONDS The Bonds will be dated December 1, 1998, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1999. Interest will be computed on the basis of a 360 -day year of twelve 30 -day months. The Bonds will mature February 1 in the years and amounts as follows: 2000 $120,000 2003 $115,000 2006 $105,000 2008 $100,000 2001 $120,000 2004 $110,000 2007 $100,000 2009 $ 95,000 2002 $115,000 2005 $105,000 Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds, provided that no serial bond may mature on or after the first mandatory sinking fund redemption date of any term bond. All term bonds shall be subject to mandatory sinking fund redemption and must conform to the maturity schedule set forth above at a price of par plus accrued interest to the date of redemption. In order to designate term bonds, the proposal must specify "Last Year of Serial Maturities" and "Years of Term Maturities" in the spaces provided on the Proposal Form. _i_ BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ( "DTC "), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The City may elect on February 1, 2005, and on any day thereafter, to prepay Bonds due on or after February 1, 2006. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge special assessments against benefited property. The proceeds will be used to finance various improvements within the City. TYPE OF PROPOSALS Proposals shall be for not less than $1,074,151 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ( "Deposit ") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $10,850, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and reapproved b the City. Such bond must be submitted to P Y Y Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at _ii_ settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1 %. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non - substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefore at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. i SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of customary closing papers, including a no- litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non - compliance with said terms for payment. CONTINUING DISCLOSURE In accordance with SEC Rule 15c2- 12(b)(5), the City will undertake, pursuant to the resolution awarding sale of the Bonds, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the Bonds will be conditioned upon receiving evidence of this undertaking at or prior to delivery of the Bonds. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly -final Official Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (651) 223 -3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect tot Obligations, n an y he Ob igat ons, as that term is defined in Rule 15c2 -12. B awarding the Obligations s to Y g 9 underwriter or underwriting syndicate submitting a proposal therefor, the Issuer agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Obligations are awarded 50 copies of the Official Statement and the addendum or addenda described above. The Issuer designates the senior managing underwriter of the syndicate to which the Obligations are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Obligations agrees thereby that if its proposal is accepted by the Issuer (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Obligations for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated October 26, 1998 BY ORDER OF THE CITY COUNCIL /s/ Sharon Knutson Clerk -iv- SCHEDULE OF BOND YEARS $1,085,000 CITY OF BROOKLYN CENTER, MINNESOTA II GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1998A Cumulative Year Principal Bond Years Bond Years 2000 $120,000 140.0000 140.0000 2001 $120,000 260.0000 400.0000 2002 $115,000 364.1667 764.1667 2003 $115,000 479.1667 1,243.3334 2004 $110,000 568.3333 1,811.6667 2005 $105,000 647.5000 2 2006 $105,000 c 752.5000 3,211.6667 2007 $100,000 c 816.6667 4,028.3334 2008 $100 c 916.6667 4,945.0001 2009 $95,000 c 965.8333 5 Average Maturity: 5.45 Years Bonds Dated: December 1, 1998 Interest Due: August 1, 1999 and each February 1 and August 1 to maturity. Principal Due: February 1, 2000 -2009 inclusive. Optional Call: Bonds maturing on or after February 1, 2006 are callable commencing February 1, 2005 and any date thereafter at par. (See Terms of Proposal.) c: subject to optional call -v- THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: I TERMS OF PROPOSAL $1,585,000* CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION STATE -AID ROAD REFUNDING BONDS, SERIES 1998B I (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Monday, November 23, 1998, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul Minnesota, s a, after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Proposals may be submitted in a sealed envelope or by fax (651) 223 -3002 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (651) 223 -3000 or fax (651) 223 -3002 for inclusion in the submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale specified above. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the Issuer to purchase the Bonds regardless of the manner of the Proposal submitted. DETAILS OF THE BONDS The Bonds will be dated December 1, 1998, as the date of original issue, and will bear interest payable on April 1 and October 1 of each year, commencing October 1, 1999. Interest will be computed on the basis of a 360 -day year of twelve 30 -day months. The Bonds will mature April 1 in the years and amounts as follows: 2001 $240,000 2003 $255,000 2005 $280,000 2002 $245,000 2004 $270,000 2006 $295,000 The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds offered for sale. Any such increase or reduction will be in a total amount not to exceed $50,000 and will be made in multiples of $5,000 in any of the maturities. In the event the principal amount of the Bonds is increased or reduced, any premium offered or any discount taken by the successful bidder will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced. -vi - BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ( "DTC "), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bond with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The City may elect on April, 1, 2004, and on any day thereafter, to prepay Bonds due on or after April 1, 2005. Redemption may be in whole or in part and if in part at the option of the Issuer and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge State -aid allotments from the Minnesota Department of Transportation. The proceeds will be used to refund in advance of maturity the 2001 through 2006 maturities of the City's $3,000,000 General Obligation State -Aid Road Bonds, Series 1991 B, dated September 1, 1991. TYPE OF PROPOSALS Proposals shall be for not less than $1,573,905 nd accrued interest on the total principal a P P P amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ( "Deposit ") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $15,850, payable to the order of the Issuer. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Obligations are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's 9 P check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. - vii - The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1 %. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non - substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the City determines to have failed to comply l i with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the Issuer and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of customary closing papers, including a no- litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the Issuer for any loss suffered by the City by reason of the purchaser's non - compliance with said terms for payment. - viii - CONTINUING DISCLOSURE In accordance with SEC Rule 15c2- 12(b)(5), the City will undertake, pursuant to the resolution awarding sale of the Bonds, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the Bonds will be conditioned upon receiving evidence of this undertaking at or prior to delivery of the Bonds. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly -final Official Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (651) 223 -3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2 -12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 60 copies of the Official Statement and the addendum or addenda described above. The Issuer designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated October 26, 1998 BY ORDER OF THE CITY COUNCIL /s/ Sharon Knutson Clerk -ix- SCHEDULE OF BOND YEARS $1,585,000 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION STATE -AID ROAD REFUNDING BONDS, SERIES 1998B I Cumulative Year Principal Bond Years Bond Years 2001 $240,000 560.0000 560.0000 2002 $245 816.6667 1,376.6667 2003 $255,000 1,105.0000 2,481.6667 i 2004 $270,000 1 3,921.6667 2005 $280,000 c 1,773.3333 5,695.0000 2006 $295,000 c 2,163.3333 7,858.3333 Average Maturity: 4.96 Years Bonds Dated: December 1, 1998 I I Interest Due: October 1, 1999 and each April 1 and October 1 to maturity. Principal Due: April 1, 2001 -2006 inclusive. Optional Call: Bonds maturing on or after April 1, 2005 are callable commencing April 1, 2004 and any date thereafter at par. (See Terms of Proposal.) c: subject to optional call III -x- OFFICIAL STATEMENT CITY OF BROOKLYN CENTER, MINNESOTA $1,085,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1998A $1,585,000" GENERAL OBLIGATION STATE -AID ROAD REFUNDING BONDS, SERIES 1998B (BOOK ENTRY ONLY) INTRODUCTORY STATEMENT This Official Statement contains certain information regarding the City of Brooklyn Center, Minnesota (the "City ") and its issuance of $1,085,000 General Obligation Improvement Bonds, Series 1998A (the "Series 1998A Bonds ") and $1,585,000' General Obligation State -Aid Road Refunding Bonds, Series 1998B (the "Series 1998B Bonds "), collectively referred to as the "Bonds" or the "Issues ". The Bonds are general obligations of the City for which the City pledges its full faith and credit and power to levy direct general ad valorem taxes without limit as to rate or amount. Inquiries may be directed to Mr. Charles R. Hansen, Finance Director, City of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430, or by telephoning (612) 569 -3345. Information may also be obtained from Springsted Incorporated, 85 East Seventh Place, Suite 100, St. Paul, Minnesota 55101 -2887, or by telephoning (651) 223 -3000. If information of a specific legal matter is desired, requests may be directed to Mr. Stephen Bubul, Kennedy & Graven, Chartered, Bond Counsel, 470 Pillsbury Center, Minneapolis, Minnesota 55402, or by telephoning (612) 337 -9300. CONTINUING DISCLOSURE In order to assist the Underwriters in complying with SEC Rule 15c2 -12 promulgated by the Securities and Exchange Commission, pursuant to the Securities Exchange Act of 1934 (the "Rule "), pursuant to the Award Resolutions, the City has entered into an undertaking (the "Undertaking ") for the benefit of holders of the Bonds to provide certain financial information and operating data relating to the City to certain information repositories annually, and to provide notices of the occurrence of certain events enumerated in the Rule to certain information repositories or the Municipal Securities Rulemaking Board and to any state information depository. The specific nature of the Undertaking, as well as the information to be contained in the annual report or the notices of material events is set forth in the Continuing Disclosure Certificate to be executed and delivered by the City at the time the Bonds are delivered in substantially the form attached hereto as Appendix II. The City has never failed to comply in all material respects with any previous undertakings under the Rule to provide annual reports or notices of material events. A failure by the City to comply with the Undertaking will not constitute an event of default on the Bonds (although holders will have any available remedy at law or in equity). Nevertheless, such a failure must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer before recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market price. x The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Series 9998B Bonds offered for sale. Any such increase or reduction will be in a total amount not to exceed $50,000 and will be made in multiples of $5,000 in any of the maturities. In the event the principal amount of the Series 9998B Bonds is increased or reduced, any premium offered or any discount taken by the successful bidder will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Series 99988 Bonds is increased or reduced. 1- THE BONDS General Description The Bonds are dated as of December 1, 1998. The Series 1998A Bonds will mature annually on February 1 and the Series 1998B Bonds will mature annually on April 1, as set forth on the cover of this Official Statement. The Bonds are issued in book entry form. Interest on the Series 1998A Bonds is payable August 1, 1999 and semi - annually thereafter on February 1 and August 1. Interest on the Series 1998B Bonds is payable October 1, 1999 and semi - annually thereafter on April 1 and October 1. Interest will be payable to the holder (initially Cede & Co.) registered on the books of the registrar on the fifteenth day of the calendar month next preceding such interest payment date. Principal of and interest on the Bonds will be paid as described in the section herein entitled "Book Entry System." The City will name the registrar for the Bonds (the "Registrar ") and pay for registration services. Optional Redemption The City may elect on February 1, 2005, and on any day thereafter, to prepay the Series 1998A Bonds due on or after February 1, 2006, The City may elect on April 1, 2004, and on any day thereafter, to prepay the Series 1998B Bonds due on or after April 1, 2005. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. Book -Entry System The Depository Trust Company ( "DTC "), New York, New York, will act as securities depository for the Bonds. The Bonds will be issued as fully - registered securities registered in the name of Cede & Co. (DTC's partnership nominee). One fully- registered certificate per maturity will be issued in the rinci al amount of the Bonds maturing in such ear, and will be deposited with P P P 9 Y DTC. DTC is a limited - purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds securities that its participants ( "Participants ") deposit with DTC. DTC also facilitates the settlement among Participants of securities transactions, such as transfers and pledges in deposited securities through electronic computerized book entry changes in Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants ( "Direct Participants ") include securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations. DTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc., and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as securities brokers and dealers, banks and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ( "Indirect Participants "). The Rules applicable to DTC and its Participants are on file with the Securities and Exchange Commission. -2- Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Certificate ( "Beneficial Owner ") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interest in the Bonds are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interest in securities, except in the event that use of the book entry system for the Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. The deposit of Bonds with DTC and their registration in the name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds. DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Redemption notices for the Bonds shall be sent to Cede & Co. If less than all of the Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co. will consent or vote with respect to Bonds. Under its usual procedures, DTC mails an Omnibus Proxy to the Registrar as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Principal and interest payments on the Bonds will be made to DTC. DTC's practice is to credit Direct Participants' accounts on the payable date in accordance with their respective holdings shown on DTC's records unless DTC has reason to believe that it will not receive payment on payable date. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Registrar, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to DTC is the responsibility of the Registrar, disbursement of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonable notice to the Registrar. Under such circumstances, in the event that a successor securities depository is not obtained, certificates are required to be printed and delivered. The City may decide to discontinue use of the system of book entry transfers through DTC (or a successor securities depository). In that event, certificates will be printed and delivered. The information in this section concerning DTC and DTC's book entry system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. -3- THE SERIES 1998A BONDS Authority and Purpose The Series 1998A Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. Proceeds will be used to finance various improvement projects within the City. The composition of the Series 1998A Bonds is as follows: Project Costs to be Financed $1,058,893 Plus: Costs of Issuance 18,900 Allowance for Discount Bidding 10,850 Less: Investment Earnings (3,643) Total Series 1998A Bonds $1,085,000 Security and Financing In addition to the City's general obligation pledge, the City also pledges special assessments against benefited property for repayment of the Series 1998A Bonds. Special assessments totaling approximately $1,088,642 of principal are expected to be filed on or before November 30, 1998 for first collection in 1999. All assessments will be spread over a term of ten years with equal annual payments of principal, and interest charged on the unpaid balance at a rate of 6.5 %. Each August 1 interest payment will be made from first -half collections of special assessments levied the previous year. Each subsequent February 1 payment of principal and interest will be made from second -half assessment collections, together with surplus first -half collections. An ad valorem tax levy is not expected to be necessary. THE SERIES 1998B BONDS Authority and Purpose The Series 1998B Bonds are being issued pursuant to Minnesota Statutes, Chapters 475 and 162. Proceeds will be used to refund in advance of maturity the 2001 through 2006 maturities of the City's $3,000,000 General Obligation State -Aid Road Bonds, Series 19918, dated September 1, 1991 (the "1991 B Bonds" or the "Refunded Bonds "). The refunding is being conducted to achieve interest cost savings. The refunding will be conducted by means of a "crossover" refunding mechanism. The proceeds of the Series 1998B Bonds will be placed in an escrow account with a bank or trust company to be named by the City. The amount in the escrow account will be invested in special obligations of the United States Treasury or other obligations of the United States or of its agencies, which shall mature in such amounts and at such times as to be available to pay debt service on the Series 1998B Bonds through the call date of the 1991B Bonds (April 1, 2000). On the call date, the escrow account will cross over and pay the remaining principal on the 1991 B Bonds by calling in all of the remaining 1991 B Bonds at a price of par plus accrued interest. The City will continue to pay debt service on the 1991B Bonds through the April 1, 2000 call date. Beginning with the first interest payment due after the call date, which shall be October 1, 2000, the City will cross over and start to make debt service payments on the Series 1998B Bonds, which shall have no principal payments prior to the crossover date. Actuarial services necessary to ensure the adequacy of the escrow account to provide timely payment of the debt service for which the escrow account is obligated will be performed by a certified public accounting firm. -4- Security and Financing The Series 1998B Bonds are general obligations of the City for which the City pledges its full faith and credit and power to levy direct general ad valorem taxes. Interest payments on the Series 1998B Bonds through April 1, 2000 will be made from funds in the escrow account. Thereafter, debt service on the Series 1998B Bonds will be made from the State -aid allotments from the Minnesota Department of Transportation currently pledged to repayment of the Series 1991 B Bonds. FUTURE FINANCING The City has no additional borrowing plans for at least the next 90 days. LITIGATION The City is not aware of any threatened or pending litigation affecting the validity of the Bonds or the City's ability to meet its financial obligations. LEGALITY The Bonds are subject to approval as to certain matters by Kennedy & Graven, Chartered, of Minneapolis, Minnesota as Bond Counsel. Bond Counsel has not participated in the preparation of this Official Statement, except for the following "Tax Exemption" section, and will not pass upon its accuracy, completeness, or sufficiency. Bond Counsel has not examined nor attempted to examine or verify, any of the financial or statistical statements, or data contained in this official Statement and will express no opinion with respect thereto. Legal opinions in substantially the form set out as Appendix I to this Official Statement will be delivered at closing. i -5- TAX EXEMPTION In the opinion of Bond Counsel, under existing statutes, regulations, rulings and decisions, interest on the Bonds is not includable in the "gross income" of the owners thereof for purposes of federal income taxation and is not includable in taxable net income of individuals, estates or trusts for purposes of State of Minnesota income taxation, but is subject to State of Minnesota franchise taxes measured by income that are imposed upon corporations and financial institutions. Noncompliance following the issuance of the Bonds with certain requirements of the Internal Revenue Code of 1986, as amended, (the "Code ") and covenants of the Bond resolutions may result in the inclusion of interest on the Bonds in gross income (for federal tax purposes) and taxable net income for State of Minnesota tax purposes of the owners thereof. No provision has been made for redemption of the Bonds, or for an increase in the interest rate on the Bonds, in the event that interest on the Bonds becomes subject to United States or State of Minnesota income taxation. The Code imposes an alternative minimum tax with respect to individuals and corporations on alternative minimum taxable income. Interest on the Bonds will not be treated as a preference item in calculating alternative minimum taxable income. The Code provides, however, that a portion of the adjusted current earnings of a corporation not otherwise included in the minimum tax base would be included for purposes of calculating the alternative minimum tax that may be imposed with respect to corporations. Adjusted current earnings include income received that is otherwise exempt from taxation such as interest on the Bonds. I The Code provides that in the case of an insurance company subject to the tax imposed by Section 831 of the Code, the amount which otherwise would be taken into account as "losses incurred" under Section 832(b)(5) shall be reduced by an amount equal to 15% of the interest on the Bonds that is received or accrued during the taxable year. Interest on the Bonds may be included in the income of a foreign corporation for purposes of the branch profits tax imposed by Section 884 of the Code. Under certain circumstances, interest on the Bonds may be subject to the tax on "excess net passive income" of S corporations imposed by Section 1375 of the Code. The above is not a comprehensive list of all Federal tax consequences which may arise from the receipt of interest on the Bonds. The receipt of interest on the Bonds may otherwise affect the Federal or State income tax liability of the recipient based on the particular taxes to which the recipient is subject and the particular tax status of other items or deductions. Bond Counsel expresses no opinion regarding any such consequences. All prospective purchasers of the Bonds are advised to consult their own tax advisors as to the tax consequences of, or tax considerations for, purchasing or holding the Bonds. QUALIFIED TAX - EXEMPT OBLIGATIONS The City will designate the Bonds as "qualified tax - exempt obligations" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax - exempt obligations. -6- RATINGS Applications for ratings of the Bonds have been made to Moody's Investors Service ( "Moody's "), 99 Church Street, New York, New York. If ratings are assigned, they will reflect only the opinion of Moody's. Any explanation of the significance of the ratings may be obtained only from Moody's. There is no assurance that ratings, if assigned, will continue for any given period of time, or that such ratings will not be revised or withdrawn, if in the judgment of Moody's, circumstances so warrant. A revision or withdrawal of the ratings may have an adverse effect on the market price of the Bonds. YEAR 2000 ISSUES Background Many existing computer programs use only the last two digits to refer to a year. These programs do not properly recognize a year that begins with "20" rather than "19 ". If not corrected, many computer applications could fail or create erroneous results, possibly affecting an organization's operations, financial condition, or ability to make timely payments on its indebtedness. Assessment The City has hired a consultant to test its computer hardware and software, and to perform a limited search of its public works equipment and facilities. The City believes that the majority of its mission- critical software and equipment is already compliant, and the remainder will be tested by June 1, 1999. The City will complete its inventory of potential Year 2000 problems by the end of 1998, at which point it will begin contacting vendors and service providers to ensure that they will also be Year 2000 compliant. A team has been formed to focus on contingency planning, but the City believes it will be fully compliant by the end of 1999. DTC DTC is currently supporting Year 2000 testing. A home page on the Internet has been established by DTC at www.dtc.ora where notices and other information regarding DTC's Year 2000 project progress will be made available to Internet users regarding DTC Year 2000 issues. There can be no guarantees that the systems of such other third parties will be timely converted or remediated, or that failure to convert or remediate by such other entity, will not have a material adverse impact on the District or impede its ability to make timely payments of principal and interest on the Bonds. -7- FINANCIAL ADVISOR The City has retained Springsted Incorporated, Public Finance Advisors, of St. Paul, Minnesota, as financial advisor (the "Financial Advisor ") in connection with the issuance of the Bonds. In preparing the Official Statement, the Financial Advisor has relied upon governmental officials, and other sources, who have access to relevant data to provide accurate information for the Official Statement, and the Financial Advisor has not been engaged, nor has it undertaken, to independently verify the accuracy of such information. The Financial Advisor is not a public accounting firm and has not been engaged to compile, review, examine or audit any information in the Official Statement in accordance with accounting standards. The Financial Advisor is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other public securities and therefore will not participate in the underwriting of the Bonds. CERTIFICATION The City has authorized the distribution of this Official Statement for use in connection with the initial sale of the Bonds. As of the date of the settlement of the Bonds, the Purchaser(s) will be furnished with a certificate signed by the appropriate officers of the City. The certificate will state that as of the date of the Official Statement the Official Statement did not and does not as of the date of the certificate contain any untrue statement of material fact or omit to state a material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. -8- CITY PROPERTY VALUES 1997 Indicated Market Value of Taxable Property: $1,076,922,761 Calculated by dividing the county assessor's estimated market value of $9,021,999,700 by the 9997 sales ratio of 94.9% for the City as determined by the State Department of Revenue. 1997 Taxable Net Tax Capacity: $19,329,196 1997 Net Tax Capacity $20,767,963 Less: Captured Tax Increment Tax Capacity (1,665,054) Contribution to Fiscal Disparities (3,520,520) Plus: Distribution from Fiscal Disparities 3,746,807 1997 Taxable Net Tax Capacity $19,329,196 1997 Taxable Net Tax Capacity by Class of Property Residential Homestead $ 6,989,482 36.16% Commercial lndustrial, Public Utility, and Personal Property' 10,138,438 52.45 Residential Non - Homestead 2,193,377 11.35 Other 7,899 0.04 Total $19,329,196 100.00% Reflects adjustments for fiscal disparities and captured tax increment tax capacity. Trend of Values Indicated Estimated Taxable Tax Year Market Value(a) Market Value Capacitv(b) 1997 $1,076,922,761 $1,021,999,700 $19,329,196(x) 1996 1,050,493,382 1,000,069,700 20,815,317 1995 1, 075, 867, 538 987,646,400 21, 317,771 1994 1,018,184,211 986,620,500 21,277,190 1993 987,130,049 1,001,937,000 21,563,017 (a) Calculated by dividing the county assessors estimated market value by the sales ratio as certified for the City each year by the State Department of Revenue. (b) For further discussion of taxable tax capacity and the Minnesota property tax system, see Appendix l/l. (c) The decrease in taxable tax capacity for 1997198 is due to a reduction in property tax class rates. -9- Ten of the Largest Taxpayers in the City 1997 Net Taxpayer Type of Property Tax Capacity Dayton Hudson Corp. Retail /Office $1,006,102 Talisman Brookdale, LLC Brookdale Mall 867,783(x) Ryan Companies /Reliastar Office /Retail 581,304 Prudential Insurance Co. Industrial /Hotel 503,184 Lang - Nelson Apartments 364,385 Bradley Real Estate Retail 342,050 Sears Roebuck and Co. Department Store 318,050 First Industrial Realty Trust Industrial 274,974 JC Penney Company Department Store 260,200 AMB Property, LP Industrial 203,046 Total $4,721,078(b) (a) Equitable Real Estate, Brookdale Mall's previous owner, successfully appealed their property valuation and as a result the valuation of the Brookdale Mall declined in 1997 for taxes payable in 1998. The City will pay $1,101,746.66 to settle past appeals of property tax levies on the Brookdale Mall valuation. (b) Represents 24.4% of the City's 1997 taxable net tax capacity. CITY INDEBTEDNESS Legal Debt Limit Legal Debt Limit (2% of Estimated Market Value) $20,439,994 Less: Outstanding Net Debt Subject to Limit (7,900.000) Legal Debt Margin as of October 2, 1998 $12,539,994 General Obligation Debt Supported by Taxes Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 10 -2 -98 12 -1 -97 $7,900,000 Police and Fire Building 2 -1 -2013 $7,900,000 This issue is subject to the statutory debt limit. I -10- General Obligation Debt Supported Primarily by Taxes and /or Special Assessments Principal Date Original Final Outstanding of Issue Amount Purpose Maturitv As of 10 -2 -98 8 -1 -94 $ 835,000 Improvement 2 -1 -2005 $ 610,000 11 -1 -95 780,000 Improvement 2 -1 -2006 645,000 11 -1 -96 1,440, 000 Improvement 2 -1 -2007 1,325,000 12 -1 -97 1,075,000 Improvement 2 -1 -2008 1,075,000 12 -1 -98 1,085,000 Improvement (the Series 1998A Bonds) 2 -1 -2009 1,085,000 Total $4,740,000 General Obligation Debt Supported by Tax Increments Principal Date Original Final Outstanding of Issue Amount Purpose Maturitv As of 10 -2 -98 3 -1 -91 $6,050,000 Tax Increment 2 -1 -2004 $ 3,625,000 2 -1 -92 4,270,000 Refunding 2 -1 -2003 3,400,000 11 -1 -95 4,560,000 Tax Increment 2 -1 -2011 4,560,000 Total $11,585,000 General Obligation Debt Supported by Other Sources (State Allocations and Enterprise Revenues) Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 10 -2 -98 9 -1 -91 $3,000,000 State -Aid Road 4 -1 -2000 $ 395,000` 8 -1 -94 1,830,000 Storm Sewer 2 -1 -2005 1,400,000 12 -1 -98 1,585,000 State -Aid Road Refunding (the Series 1998B Bonds) 4 -1 -2006 1,585,000 Total $3,380,000 Excludes the 2001 through 2006 maturities which are being refunded by the Series 99988 Bonds. -11- Annual Calendar Year Debt Service Payments Including These Issues and Excluding the Refunded Bonds G.O. Debt Supported G.O. Debt Supported by Taxes and /or by Taxes Special Assessments Principal Principal Year Principal & Interest Principal & Interest(b) 1998 (at 10 -2) - -- (Paid) (Paid) (Paid) 1999 $ 325,000 $ 679,028.13 $ 405,000 $ 596,371.25 2000 400,000 739,025.00 535,000 720,647.50 2001 415,000 736,906.25 535,000 697,181.25 2002 435,000 738,735.00 535,000 673,301.25 2003 450,000 734,595.00 540,000 653,880.00 2004 470,000 734,467.50 540,000 628,895.00 2005 495,000 738,113.75 545,000 608,287.50 2006 515,000 735,512.50 450,000 489,802.50 2007 540,000 736,640.00 360,000 380,927.50 2008 565,000 736,218.75 200,000 208,197.50 2009 595,000 739,100.00 95,000 96,923.75 2010 625,000 740,273.75 2011 655,000 739,710.00 2012 690,000 742,257.50 2013 725,000 742,762.50 Total $7,900,000(a) $11,013,345.63 $4,740,000(c) $5,754,415.00 G.O. Debt Supported Primarily G.O. Debt Supported by Tax Increments by Other Sources Principal Principal Year Principal & Interest Principal & interest(e) 1998 (at 10 -2) (Paid) (Paid) (Paid) (Paid) 1999 $ 1,165,000 $ 1,827,232.50 $ 360,000 $ 545,117.50 2000 1,280,000 1,875,553.75 385,000 529,633.75 2001 1,450,000 1,969,408.75 430,000 534,770.00 2002 1,540,000 1,973,892.50 445,000 531,128.75 2003 1,645,000 1,985,412.50 465,000 531,380.00 2004 1,775,000 2,012,302.50 490,000 535,310.00 2005 360,000 531,122.50 510,000 532,887.50 2006 360,000 507,362.50 295,000 300,678.75 2007 385,000 507,585.00 2008 385,000 481, 693.75 2009 400,000 470,200.00 2010 415,000 457,693.75 2011 425,000 439, 343.75 Total $11,585,000(d) $15,038,803.75 $3,380,000 $4,040,906.25 (a) 58% of this debt will be retired within ten years. W Includes the Series 1998A Bonds at an assumed average annual rate of 4.05 %. M 98% of this debt will be retired within ten years. (d) 89% of this debt will be retired within ten years. (e) Includes the Series 99988 Bonds at an assumed average annual rate of 3.90% and excludes the Refunded Bonds. -12- Summary of General Obligation Direct Debt Gross Less: Debt Net Debt Service Funds(a) Direct Debt Supported by Taxes $ 7,900,000 (b) $ 7,900,000 Supported Primarily by Taxes and /or Special Assessments 4,740,000 $(486,749) 4,253,251 Supported by Tax Increments 11,585,000 -0- 11,585,000 Supported by Other Sources(b) 3,380,000 (C) 3,380,000 (a) Debt service funds are as of September 30, 1998 and include money to pay both principal and interest. (b) The City's tax collections are initially placed in the General Fund and are transferred into the debt service fund at year's end. (c) The State Aid Road Bonds and the Refunding Bonds are paid from allotments made by the State of Minnesota Municipal State Aid Highway Fund; and the Storm Sewer Bonds are paid directly from net revenues of the torm Drain Enterprise S age terp se Indirect General Obligation Debt Debt Applicable to 1997 Taxable G.O. Debt Tax Capacity in City Taxing Unit(a) Net Tax Caoacitv As of 10- 2 -98(b) Percent Amount Hennepin County $1,041,418,995 $106,385,000 1.86% $ 1,978,761 Hennepin Parks 763,031,572 10,415,000 2.53 263,500 ISD 11 (Anoka- Hennepin) 118,368,918 102,783,700 1.82 1,870,663 ISD 279 (Osseo) 79,832,982 109,110,000 6.39 6,972,129 ISD 286 (Brooklyn Center) 6,647,439 3,885,000 100.00 3,885,000 Metropolitan Council 2,102,309,970 30,790,000(c) 0.92 283,268 Metropolitan Transit District 1,878,470,023 83,815,000 1.03 863,295 Total $16,116,616 (a) Only those taxing units with debt outstanding are shown here. (b) Excludes general obligation tax and aid anticipation debt and revenue supported debt. (c) Metropolitan Council also has outstanding $411,205,000 of general obligation sanitary sewer bonds and loans which are supported by sewer system revenues. Debt Ratios G.O. Net G.O. Indirect & Direct Debt" Net Direct Debt To 1997 Indicated Market Value ($1,076,922,761) 2.20% 3.70% Per Capita (28,515 - 1997 Metropolitan Council Estimate) $832 $1,398 Excludes general obligation debt supported by other sources (state aid allotments and revenues). I -13- CITY TAX RATES, LEVIES AND COLLECTIONS Tax Capacity Rates for a City Resident in ISD 286 1997/98 For 1993/94 1994/95 1995/96 1996/97 Total Debt Only Hennepin County 37.441% 37.454% 37.270% 35.515% 38.386% 2.515% City of Brooklyn Center 27.603 31.091 30.344 32.875 35.214 1.322 ISD 286 (Brooklyn Center) 56.614 78.861 58.682 56.260 51.567 8.447 Special Districts' 6.234 6.357 6.900 6.659 7.483 1.472 Total 127.892% 153.763% 133.196% 131.309% 132.650% 13.756% Special Districts include Metropolitan Council, Metropolitan Transit District, Metropolitan Mosquito Control, Hennepin County Technical College, Hennepin County Regional Rail Authority, and Hennepin County Parks. NOTE: Property taxes are determined by multiplying the net tax capacity by the tax capacity rate expressed as a percentage. (See Appendix 111.) Tax Levies and Collections Collected During Collected Gross Net Collection Year As of 5- 31 -98(b) Levv /Collect Levy Levy (a) Amount Percent Amount Percent 1997/98 $8,865,787 $7,557,657 (In Process of Collection) 1996/97 7,929,690 6,746,834 $6,623,035 98.2% $6,640,459 98.4% 1995/96 7,644,882 6,495,630 6,354,399 97.8 6,298,409 97.0 1994/95 7,801,664 6,501,554 6,362,402 97.9 6,322,624 97.2 1993/94 7,192,475 5,857,554 5,634,155 96.2 5,458,107 93.2 (a) The net tax levy excludes Homestead and Agricultural Credit Aid ( "HACA'). The net levy is the basis for computing tax capacity rates_ (b) The decrease in tax collections, subsequent to the initial collection year, resulted from refunds to taxpayers, based on court rulings of petitions and abatements, which were not filed until after the collection year. I -14- FUNDS ON HAND As of September 30, 1998 Fund Cash and Investments General $ 6,979,128.83 Special Revenue 5,136,825.91 Capital Projects 13,835,742.94 Debt Service: Special Assessment 486,749.01 Tax Increment 0 Taxes 0 Enterprise 3,620,087.69 Internal Service 4,843,940.47 Total $34,902,474.85" The City will make a payment of $9,109,746.66 in December to settle past appeals of property tax levies on the Brookdale Shopping Center. CITY INVESTMENTS The City's investment policy, last revised on March 24, 1997, has the objectives of preserving safety of principal, retaining sufficient liquidity, providing a market rate of return, and yielding a stable return on all invested City funds. Minnesota Statutes, Chapter 118A, authorize and define an investment program for municipal governments. The City shall invest in the following instruments allowed by Minnesota Statutes: a. Securities that are the direct obligations or are guaranteed or insured issues of the United States, its agencies, its instrumentalities, or organizations created by an act of Congress; including governmental bills, notes, bonds, and other securities. b. Commercial paper issued by U.S. corporations or their Canadian subsidiaries that is rated in the highest quality by at least two nationally recognized rating agencies and matures in 270 days or less. C. Time deposits that are fully insured by the Federal Deposit Insurance Corporation or bankers acceptances of U.S. banks. d. Repurchase agreements and reverse repurchase agreements may be entered into with financial institutions identified by Minnesota Statutes, Chapter 118A. e. Securities lending agreements may be entered into with financial institutions identified by Minnesota Statutes, Chapter 118A. f. Minnesota joint powers investment trusts may be entered into with trusts identified by Minnesota Statutes, Chapter 118A. g. Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of short-term securities permitted by Minnesota Statutes, Chapter 118A. h, Bonds of the City of Brooklyn Center issued in prior years, may be redeemed at current market price, which may include a premium, prior to maturity using surplus funds of the debt service fund set up for that issue. Such repurchased bonds shall be canceled and removed from the obligation of the fund. -15- Derivative securities, which obtain their value by the calculation of some portion of the value of another security, shall not be purchased. Mortgage- backed securities, even if insured by a Federal Agency, and stripped securities also shall not be purchased, pursuant to the policy. Investments of the City shall be undertaken in a manner which seeks to insure the preservation of capital in the overall portfolio. Safety of principal is the foremost objective. Liquidity and yield are also important considerations. It is essential that the investment portfolio remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. The investment portfolio of the City shall be designed to attain a market - average rate of return during budgetary and economic cycles, taking into account the City's investment risk constraints and liquidity needs. Return on investment is of least importance compared to the objectives for safety and liquidity. Securities shall be held to maturity with the exceptions of meeting the liquidity needs of the portfolio and minimizing loss of principal for a security of declining credit. Securities of various maturities shall be purchased so that at least half of the investment portfolio will remain for two or more years with known interest rates. Authority to manage the investment program is vested in the City Manager, City Treasurer, and Assistant City Treasurer, with the City Treasurer responsible for establishing and maintaining an internal control structure to provide reasonable assurance that the objectives of the policy are met. As of September 30, 1998 the City had $28,500,000 (par value) invested, with a market value of $28,962,134 (103.3% of the original cost to the City). U.S. Treasury notes represented 57.2% of the City's portfolio with $16,300,000 invested. Government agency securities totaled $2,200,000, representing 7.7% of the portfolio. The balance ($10,000,000), representing 35.1 % of the portfolio, is in certificates of deposit and commercial paper. 84.56% of the portfolio matures within three years or less; 98.95% matures within five years or less; and none of the securities held by the City have a maturity later than 2006. GENERAL INFORMATION CONCERNING THE CITY The City of Brooklyn Center is a northern suburb of the Minneapolis /Saint Paul metropolitan area. lying adjacent to the City of Minneapolis. The City is wholly within Hennepin County and encompasses an area of approximately 8.5 square miles. The Mississippi River forms the City's eastern boundary. The City experienced its most rapid growth from 1950 to 1970 when the City's population grew from 4,300 to its peak of 35,173. The 1990 U.S. Census count for the City is 28,887, a 7.5% decline from the 1980 Census. The 1997 population, as estimated by the Metropolitan Council, is 28.515. In contrast to the decline in population (which is due almost entirely to fewer persons per household), the number of housing units has generally continued to increase from 10,493 in 1970 to 11,035 in 1980 and 11,370 in 1990. The number dropped slightly in 1996 to 11,133 housing units. This was due to the removal of some units by the City in accordance with a pre - planned redevelopment effort. In 1997, the number increased to 11,238. Major transportation routes in and through the City, including Interstate Highways 94 and 694, and State Highways 100 and 252, have provided a continued impetus for development of a strong commercial tax base in the City. -16- Growth and Development Commercial and industrial property comprises 52.5% of the City's taxable net tax capacity. There are four major shopping centers located in the City in addition to a large number of retail establishments including K -Mart, Kohl's Department Store, Toys R Us and Rainbow Foods. The largest commercial property in the City is Brookdale Mall, a 1,000,000 square -foot regional shopping center anchored by Dayton's, Sears, Penney's, and Mervyn's of California. The other three retail shopping centers include Brookdale Square, a 125,000 square -foot strip center plus an 8- screen theater; Shingle Creek Center, a 157,000 square -foot building anchored by Target; and Brookview Plaza, a 70,000 square -foot center anchored by Best Buy. New construction in 1998 includes the Extended Stay America Hotel for $2,600,000; Holiday Station Stores for $1,150,000; and River Road Dental for $600,000. The City is currently constructing a new police station and remodeling two fire stations at a cost of $7,900,000. Several commercial remodeling projects took place in 1998 including Bob Ryan Oldsmobile for $359,000; Health System Minnesota for $620,000; Pep Boys for $660,000; Iten Chevrolet for $132,500; and Hiawatha Rubber for $976,200. The convergence of highways in Brooklyn Center make it an attractive sight for hotels and motels. Establishments now operating here or under construction include: Americlnn, Budgetel Inn, Comfort Inn, Country Inn & Suites, Extended Stay America Hotel, Hilton Hotel, Holiday Inn, and Super 8 Motel. Summary of Building Permits New Residential Total Permits Permits onlv Number Value Number Value 1998 (at 9 -30) 1,225 $21,147,473 6 $ 644,832 1997 796 18,274,806 3 225,000 1996 607 16,647,400 18 1,126,000 1995 603 11, 945, 264 2 153,000 1994 604 13,038,263 9 587,000 1993 520 11,437,250 7 505,000 1992 549 14,249,265 14 948,810 1991 466 8,800,980 7 450,745 1990 504 8,035,605 1 65,249 -17- I Major Employers in the City Approximate Number Employer Product /Service of Emplovees Brookdale Center Shopping Center 1,700 City of Brooklyn Center Government 307* Promeon, Div. of Medtronics Medical Components 300 Hoffman Engineering Electrical Enclosure 265 TCR Corporation Metal Components 175 Ault, Inc. Manufacturing 160 Graco, Inc. Spray Paint Equipment 100 Cass Screw Machine Products Screw Machine Parts 100 Precision Inc. Electronic Transformers and Coils 100 Hiawatha Rubber Company Custom Rubber Molder 85 Highway 100 Sports Club Health Club 75 Creative Banner Assemblies Banners and Flags 50 * Includes full- and part -time employees. Source: Minnesota Department of Trade and Economic Development 9996 Community Profile, Minnesota Manufacturers Register for 1998. Labor Force Data JUN 1998 July 1997 Civilian Unemployment Civilian Unemployment Labor Force Rate Labor Force Rate Hennepin County 676,986 1.7% 655,515 2.5% Minneapolis /St. Paul MSA 1,717,703 1.7 1,663,659 2.4 Minnesota 2,698,877 2.3 2,623,333 3.2 Source. Minnesota Department of Economic Security. July 1998 data is preliminary. Financial Institutions Branch facilities of financial institutions located in Brooklyn Center include: Marquette Bank, National Association; Norwest Bank Minnesota, National Association; Firstar Bank of Minnesota, National Association; and TCF National Bank Minnesota, as well as numerous credit unions. Source: Upper Midwest Financial Directory, Spring 1998. -18- Education The City is served by four independent school districts: ISD 11 (Anoka- Hennepin), ISD 279 (Osseo), ISD 281 (Robbinsdale) and ISD 286 (Brooklyn Center). The City's taxable net tax capacity is attributable to each of the four school districts as follows: Portion of 1997 Taxable Net Tax Capacity Located in the City, % of Total ISD 286 (Brooklyn Center)' $ 6,647,439 34.39% ISD 281 (Robbinsdale) 5,420,605 28.04 ISD 279 (Osseo) 5,101,847 26.40 ISD 11 (Anoka- Hennepin) 2,159.305 11.17 Total $19,329,196 100.00% ISD 286 is located entirely within the City of Brooklyn Center. Medical Major medical facilities in the Minneapolis /St. Paul metropolitan area are easily accessible to all City residents. North Memorial Medical located in the adjacent City of Robbinsdale has 518 acute care beds and Unity Medical Center located in the adjacent City of Fridley has 275 acute care beds. GOVERNMENTAL ORGANIZATION AND SERVICES Organization Brooklyn Center has been a municipal corporation since 1911, and is governed under a Home Rule Charter adopted in 1966 and subsequently amended. The City has a Council- Manager form of government. The Mayor and four Council Members are elected to serve overlapping four -year terms. Individuals comprising the current City Council are listed below: Expiration of Term Myrna Kragness Mayor December 31, 2000 Kathleen Carmody Council Member December 31, 1998" Debra Hilstrom Council Member December 31, 2000 Kay Lasman Council Member December 31, 2000 Robert Peppe Council Member December 31, 2000 Kathleen Carmody did not run for re- election. Ed Nelson will replace her as Council Member effective January 1, 1999. The City Manager, Mr. Michael J. McCauley, is responsible for the administration of Council The Manager er is appointed inted b the Council and policy and the daily management of the Cit g pp Y p Y Y g Y serves at its discretion. Mr. McCauley has served the City in the position of Manager since December of 1995. The Director of Finance, Mr. Charles R. Hansen, is responsible for directing the City's financial operations, including preparation of the annual financial report and interim reports, and the investment of City funds. Mr. Hansen has served the City as Director of Finance since 1993 and was previously assistant to the City Director of Finance for seven years. -19- Services The City has 160 full -time and 155 part -time employees serving in various departments. Forty - four full -time police officers and a support staff of 15 provide protective services in the City. Fire protection is provided by one full -time member and a 39- member volunteer force. The City has two fire stations and a class 5 insurance rating. All areas of the City are serviced by municipal water and sewer systems. Water is supplied by nine wells and storage is provided by three elevated tanks with a combined total capacity of 3.0 million gallons. The municipal water system has a pumping capacity of 17.6 million gallons per day (mgd). The average daily water demand is estimated to be 3.4 mgd and peak demand is estimated to be 8.7 mgd. Water connections totaled 8,894 as of December 31, 1997. Although the City owns and maintains its own sanitary and storm sewer collection systems, wastewater treatment facilities are owned and operated by the Metropolitan Council's office of environmental services. The City is billed an annual service charge by Met Council, which subsequent year based on actual usage. The City charge is adjusted the subse g Y had 8,770 sewer 9 1 q Y connections at the end of 1997. The City owns two off -sale liquor stores. A third facility is leased. Under the City's current five - year lease which expires in 1999 minimum annual rental Y � P payments are $24,933. In 1997 the y Liquor Fund transferred $100,000 into the City's General Fund For 1998 a transfer of $75,000 will be made to the Capital Improvement Fund rather than the General Fund. City offices are located in the Brooklyn Center Civic Center which was constructed in 1971. The Civic Center has a 300 -seat hall, a 50 meter indoor /outdoor swimming pool and exercise The i maintains 522 acres of parkland much of which is located along and game rooms. e C ty m Shingle Creek forming a "green way" north to south through the City. Recreational facilities include a par 3 9 -hole golf course, 17 playgrounds, softball and baseball diamonds, basketball courts, tennis courts, hockey and skating rinks, nature areas, trails and an arboretum. 1998 General Fund Budget Summary Revenues: Appropriations: Property Taxes $ 7,127,573 General Government $ 1,460,896 Sales Tax (Lodging) 460,000 Public Safety 4,918,612 Fines and Forfeitures 192,000 Public Works 2,508,073 Licenses & Permits 364,585 Health and Social Services 80,104 Intergovernmental Revenue 3,848,814 Recreation 2,165,277 Service Charges 882,594 Convention and Tourism 218,500 Miscellaneous Revenue 312,000 Community Development 634,423 Nondepartmental 538,794 Administrative Service Reimbursement (715,538) Transfers to Police and Fire Debt Service Funds 745,853 Transfers to Street Debt Service Fund 238,375 Transfers to Street Construction Fund 394,197 Total Revenues $13,187,566 Total Appropriations $13,187,566 -20- ■ Employee Pension Plans All full -time and certain part-time employees of the City of Brooklyn Center are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost - sharing multiple - Employer retirement plans. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security and Basic members are not. All new members must participate in the Coordinated Plan. All police officers, fire fighters and peace officers who qualify for membership by statute are covered by the PEPFF. City contributions to PERA totaled $486,595 in 1997. The City contributes to the Brooklyn Center Fire Department Relief Association, a single - Employer public employee retirement system. The City levies property taxes at the direction of and for the benefit of the Association and passes through State -aids allocated to the Association, all in accordance with enabling State statutes. City and State -aid contributions totaled $38,451 and $84,619, respectively, in 1997. The contributions represented $68,698 of normal costs, $26,241 for the amortization of the unfunded actuarial accrued liability, and administration costs of $13,512. (The Balance of This Page Has Been Intentionally Left Blank) -21- APPENDIX I PROPOSED FORK! OF LEGAL OPINIONS 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 (612) 337 -9300 telephone (612) 337 -9310 fax C H A R T E R E D e -mail: atrys@kennedy- graven.com $1,085,000 General Obligation Improvement Bonds, Series 1998A City of Brooklyn Center Hennepin County, Minnesota We have acted as bond counsel in connection with the issuance by the City of Brooklyn Center, Hennepin County, Minnesota, of its General Obligation Improvement Bonds, Series 1998A, originally dated as of December 1, 1998, in the total principal amount of $1,085,000. For the purpose of rendering this opinion we have examined certified copies of certain proceedings taken by the City in the authorization, sale and issuance of the Bonds, including the form of the Bonds, and .certain other proceedings and documents furnished by the City. From our examination of such proceedings and other documents, assuming the genuineness of the signatures thereon and the accuracy of the facts stated therein and continuing compliance by the City with its covenants to comply with the Internal Revenue Code of 1986, as amended, and based upon laws, regulations, rulings and decisions in effect on the date hereof, it is our opinion as of the date hereof that: 1. The Bonds are in due form, have been duly executed and delivered, and are valid and binding general obligations of the City, enforceable in accordance with their terms, except as such enforcement may be limited by Minnesota or United States laws relating to bankruptcy, reorganization, moratorium or creditors' rights. 2. The principal of and interest on the Bonds are payable primarily from special assessments levied or to be levied on property specially benefitted by local improvements, but if necessary for the payment thereof ad valorem taxes are required by law to be levied on all taxable property in the City, which taxes are not subject to any limitation as to rate or amount. 3. Interest on the Bonds is not includable in gross income of the recipient for federal income tax purposes or in taxable net income for Minnesota income tax purposes, and is not a preference item for purposes of the computation of the federal alternative minimum tax, or the computation of the Minnesota alternative minimum tax imposed on individuals, trusts and estates, but such interest is includable in the computation of "adjusted current earnings," used in the calculation of federal alternative minimum taxable income of corporations, and is subject to Minnesota franchise taxes on corporations (including financial institutions) measured by income and the alternative minimum tax base. We express no opinion regarding g respect to the Bonds. The Bonds are not arbitrage other federal or state tax consequences arisen with res e bonds b q � P and are not private activity bonds. We have not been asked and have not undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we express no opinion with respect thereto. Dated at Minneapolis, Minnesota, i 470 Pillsbury Center a 200 South Sixth Street Minneapolis MN 55402 (612) 337 -9300 telephone (612) 337 -9310 fax C H A R T E R E e -mail: aays@kennedy- graven.com $1,585,000 General Obligation State -Aid Road Refunding Bonds, Series 1998B City of Brooklyn Center Hennepin County, Minnesota We have acted as bond counsel in connection with the issuance by the City of Brooklyn Center, Hennepin County, Minnesota, of its General Obligation State -Aid Road Refunding Bonds, Series 1998B, originally dated as of December 1, 1998, in the total principal amount of $1,585,000. For the purpose of rendering this opinion we have examined certified copies of certain proceedings taken by the City in the authorization, sale and issuance of the Bonds, including the form of the Bonds, and certain other proceedings and documents furnished by the City. From our examination of such proceedings and other documents, assuming the genuineness of the signatures thereon and the accuracy of the facts stated therein and continuing compliance by the City with its covenants to comply with the Internal Revenue Code of 1986, as amended, and based upon laws, regulations, rulings and decisions in effect on the date hereof, it is our opinion as of the date hereof that: 1. The Bonds are in due form, have been duly executed and delivered, and are valid and binding general obligations of the City, enforceable in accordance with their terms, except as such enforcement may be limited by Minnesota or United States laws relating to bankruptcy, reorganization, moratorium or creditors` ri ghts. 2. The principal of and interest on the Bonds are payable primarily from state aid allotment from the Minnesota Department of Transportation, but if necessary for the payment thereof ad valorem taxes are required by law to be levied on all taxable property in the City, which taxes are not subject to any limitation as to rate or amount. 3. Interest on the Bonds is not includable in gross income of the recipient for federal income tax purposes or in taxable net income for Minnesota income tax purposes, and is not a preference item for purposes of the computation of the federal alternative minimum tax, or the computation of the Minnesota alternative minimum tax imposed on individuals, trusts and estates, but such interest is includable in the computation of "adjusted current earnings," used in the calculation of federal alternative minimum taxable income of corporations, and is subject to Minnesota franchise taxes on corporations (including financial institutions) measured by income and the alternative minimum tax base. We express no opinion regarding other federal or state tax consequences arising with respect to the Bonds. The Bonds are not arbitrage bonds and are not private activity bonds. We have not been asked and have not undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we express no opinion with respect thereto. Dated at Minneapolis, Minnesota, SJB- 151963 BR291 -155 1 -2 APPENDIX II VVir I V V�17 tJ IDISC L- ORE \+CfYi t Irlli %1 D G I This Continuing Disclosure Certificate (the "Disclosure Certificate ") is executed and delivered by the City of Brooklyn Center, Minnesota (the "Issuer ") in connection with the issuance of $1,085,000 General Obligation Improvement Bonds, Series 1998A; and $1,585,000 General Obligation State Aid Road Refunding Bonds, Series 1998B (the "Securities "). The Securities are being issued pursuant to Authorizing Resolutions adopted by the City Council of the Issuer on October 26, 1998 and Award Resolutions adopted by the City Council of the Issuer on November 23, 1998 (collectively, the "Resolutions ") and delivered to the Purchaser(s) on the date hereof. Pursuant to the Resolutions, the Issuer has covenanted and agreed to provide continuing disclosure of certain financial information and operating data and timely notices of the occurrence of certain events. In addition, the Issuer hereby covenants and agrees as follows: Section 1. Pumose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the Holders of the Securities in order to assist the Participating Underwriters within the meaning of the Rule (defined herein) in complying with SEC Rule 15c2- 12(b)(5). This Disclosure Certificate, together with the Resolutions, constitutes the written Undertaking required by the Rule. Section 2. Definitions. In addition to the defined terms set forth in the Resolutions, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" means any annual report provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. "Audited Financial Statements" means the Issuer's annual financial statements, prepared in accordance with generally accepted accounting principles ( "GAAP ") for Governmental Units as Prescribed by the Governmental Accounting Standards Board ( "GASB "). "Fiscal Year" means the fiscal year of the Issuer. "Final Official Statement" means the deemed final official statement dated 1998 plus the addendum thereto which together constitute the final official statement delivered in connection with the Securities, which is available from the MSRB. "Holder" means the person in whose name a security is registered or a beneficial owner of such a security. "Issuer" means the City of Brooklyn Center, Minnesota which is the obligated person with respect to the Securities. "Material Event" means any of the events listed in Section 5(a) of this Disclosure Certificate. SJB- 151960 BR291 -185 Il -1 I I "MSRB" means the Municipal Securities Rulemaking Board located at 1150 18th Street, N.W., Suite 400, Washington, D.C. 20036. " NRMSIR" means any nationally recognized municipal securities information repository as recognized from time to time by the SEC for purposes of the Rule. "Participating Underwriter" means any of the original underwriter(s) of the Securities (including the Purchaser(s)) required to comply with the Rule in connection with the offering of the Securities. "Repository" means each NRMSIR and each SID, if any. "Rule" means SEC Rule 15c2- 12(b)(5) promulgated by the SEC under the Securities Exchange Act of 1934, as the same may be amended from time to time, and including written interpretations thereof by the SEC. "SEC" means Securities and Exchange Commission. "SID" means any public or private repository or entity designated by the State of Minnesota as a state information depository for the purpose of the Rule. As of the date of this Certificate, there is no SID. Section 3. Provision of Annual Financial Information and Audited Financial Statements. (a) The Issuer shall, as soon as available, but not later than 12 months after the end of the Fiscal Year commencing with the year that ends December 31, 1998, provide each Repository with an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross - reference other information as provided in Section 4 of this Disclosure Certificate; provided that the Audited Financial Statements of the Issuer may be submitted separately from the balance of the Annual Report and will be submitted as soon as available. (b i If the Issuer is unable or fails to provide to the Repositories an Annual Report by the date required in subsection (a), the Issuer shall send a notice of that fact to the NRMSIRs, the MSRB and SID. (c) The Issuer shall determine each year prior to the date for providing the Annual Report the name and address of each NRMSIR and the SID, if any. Section 4. Content of Annual Reports. The Issuer's Annual Report shall contain or incorporate by reference the following sections of the Final Official Statement: SJB- 151960 BR291 -185 11-2 1. City Property Values. 2. City Indebtedness. 3. City Tax Rates, Levies and Collections. In addition to the items listed above, the Annual Report shall include Audited Financial Statements submitted in accordance with Section 3 of this Disclosure Certificate. Any or all of the items listed above may be incorporated by reference from other documents, including official statements of debt issues of the Issuer or related public entities, which have been submitted to each of the Repositories or the SEC. If the document incorporated by reference is a final official statement, it must also be available from the MSRB. The Issuer shall clearly identify each such other document so incorporated by reference. Section 5. Reporting of Material Events. (a) This Section 5 shall govern the giving of notices of the occurrence of any of the following events if material with respect to the Securities: 1. Principal and interest payment delinquencies; 2. Non - payment related defaults; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 5. Adverse tax opinions or events affecting the tax- exempt status of the security; 7. Modifications to rights of security holders; 8. Bond calls; 9. Defeasances; 10. Release, substitution or sale of property securing repayment of the securities; and 11. Rating changes. (b) Whenever the Issuer obtains knowledge of the occurrence of a Material Event, the Issuer shall promptly file a notice of such occurrence with either all NRMSIRs or with the MSRB and with any SID. Notwithstanding the foregoing, notice of SJB- 151960 BR291 -185 11 -3 Material Events described in subsections (a)(8) and (9) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to Holders of affected Securities pursuant to the Resolutions. (c) Unless otherwise required by law and subject to technical and economic feasibility, the Issuer shall employ such methods of information transmission as shall be requested or recommended by the designated recipients of the Issuer's information. Section 6. Termination of Reporting Obligation. The Issuer's obligations under the Resolutions and this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all the Securities. Section 7. Agent The Issuer may, from time to time, appoint or engage a dissemination agent to assist it in carrying out its obligations under the Resolutions and this Disclosure Certificate, and may discharge any such agent, with or without appointing a successor dissemination agent. Section 8. Amendment; Waiver. Notwithstanding any other provision of the Resolutions or this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, if such amendment or waiver is supported by an opinion of nationally recognized bond counsel to the effect that such amendment or waiver would not, in and of itself, cause the undertakings to violate the Rule. The provisions of the Resolutions constituting the Undertaking and this Disclosure Certificate, or any provision hereof, shall be null and void in the event that the Issuer delivers to each then existing NRMSIR and the SID, if any, an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which require the Resolutions and this Certificate are invalid, have been repealed retroactively or otherwise do not apply to the Securities. The provisions of the Resolutions constituting the Undertaking and this Disclosure Certificate may be amended without the consent of the Holders of the Securities, but only upon the delivery by the Issuer to each then existing NRMSIR and the SID, if any, of the proposed amendment and an opinion of nationally recognized bond counsel to the effect that such amendment, and giving effect thereto, will not adversely affect the compliance of the Resolutions and this Disclosure Certificate and by the Issuer with the Rule. Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that which is required by this Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Material Event in addition to that which is specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Material Event. Section 10. Default In the event of a failure of the Issuer to comply with any provision of this Disclosure Certificate any Holder of the Securities may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the SJB- 151960 BR291 -185 11-4 Issuer to comply with its obligations under the Resolutions and this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an event of default with respect to the Securities and the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an action to compel performance. Section 11. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Issuer, the Participating Underwriters and Holders from time to time of the Securities, and shall create no rights in any other person or entity. IN WITNESS WHEREOF, we have executed this Certificate in our official capacities effective the day of ' 1998. CITY OF BROOKLYN CENTER, MINNESOTA Mayor City Manager I SJB- 151960 BR291 -185 i I I -5 APPENDIX III SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND MINNESOTA REAL PROPERTY VALUATION Following is a summary of certain statutory provisions effective through 1999 relative to tax levy procedures, tax payment and credit procedures, and the mechanics of real property valuation. The summary does not purport to be inclusive of all such provisions or of the specific provisions discussed, and is qualified by reference to the complete text of applicable statutes, rules and regulations of the State of Minnesota. Property Valuations (Chapter 273, Minnesota Statutes) Assessor's Estimated Market Value. Each parcel of real property subject to taxation must, by statute, be appraised at least once every four years as of January 2 of the year of appraisal. With certain exceptions, all property is valued at its market value which is the value the assessor determines to be the price the property to be fairly worth, and which is referred to as the "Estimated Market Value." Limitation of Market Value Increases. Effective through assessment year 2001, the amount of increase in market value for all property classified as agricultural homestead or non - homestead, residential homestead or non - homestead, or non - commercial seasonable recreational residential, which is entered by the assessor in the current assessment year, may not exceed the greater of (i) 10% of the preceding year's market value or (ii) 1/4 of the difference between the current assessment and the preceding assessment. Indicated Market Value. Because the Estimated Market Value as determined by an assessor may not represent the price of real property in the marketplace, the "Indicated Market Value" is generally regarded as more representative of full value. The Indicated Market Value is determined by dividing the Estimated Market Value of a given year by the same year's sales ratio determined by the State Department of Revenue. The sales ratio represents the overall relationship between the Estimated Market Value of property within the taxing unit and actual selling price. Net Tax Capacitv. The Net Tax Capacity is the value upon which net taxes are levied, extended and collected. The Net Tax Capacity is computed by applying the class rate percentages specific to each type of property classification against the Estimated Market Value. Class rate percentages vary depending on the type of property as shown on the last page of this Appendix. The formulas and class rates for converting Estimated Market Value to Net Tax Capacity represent a basic element of the State's property tax relief system and are subject to annual revisions by the State Legislature. Property taxes are determined by multiplying the Net Tax Capacity by the tax capacity rate, expressed as a percentage. Property Tax Payments and Delinquencies (Chapters 275 276 277 279 -282 and 549 Minnesota Statutes) Ad valorem property taxes levied by local governments in Minnesota are extended and collected by the various counties within the State. Each taxing jurisdiction is required to certify the annual tax levy to the county auditor within five (5) working days after December 20 of the year preceding the collection year. A listing of property taxes due is prepared by the county auditor and turned over to the county treasurer on or before the first business day in March. The county treasurer is responsible for collecting all property taxes within the county. Real estate and personal property tax statements are mailed out by March 31. One -half (1/2) of the taxes on real property is due on or before May 15. The remainder is due on or before October 15. Real property taxes not paid by their due date are assessed a penalty which, depending on the type of property, increases from 2% to 4% on the day after the due date. In 111 -1 the case of the first installment of real property taxes due May 15, the penalty increases to 4% or 8% on June 1. Thereafter, an additional 1% penalty shall accrue each month through October 1 of the collection year for unpaid real property taxes. In the case of the second installment of real property taxes due October 15, the penalty increases to 6% or 8% on November 1 and increases again to 8% or 12% on December 1. Personal property taxes remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8% attaches to the unpaid tax. However, personal property owned by a tax - exempt entity, but which is treated as taxable by virtue of a lease agreement, is subject to the same delinquent property tax penalties as real property. On the first business day of January of the year following collection all delinquencies are subject to an additional 2% penalty, and those delinquencies outstanding as of February 15 are filed for a tax lien judgment with the district court. By March 20 the clerk of court files a publication of legal action and a mailing of notice of action to delinquent parties. Those property interests not responding to this notice have judgment entered for the amount of the delinquency and associated penalties. The amount of the judgment is subject to a variable interest determined annually by the Department of Revenue, and equal to the adjusted prime rate charged by banks, but in no event is the rate less than 10% or more than 14 %. Property owners subject to a tax lien judgment generally have five years (5) in the case of all property located outside of cities or in the case of residential homestead, agricultural homestead and seasonal residential recreational property located within cities or three (3) years with respect to other types of property to redeem the property. After expiration of the redemption period, unredeemed properties are declared tax forfeit with title held in trust by the State of Minnesota for the respective taxing districts. The county auditor, or equivalent thereof, then sells those properties not claimed for a public purpose at auction. The net proceeds of the sale are first dedicated to the satisfaction of outstanding special assessments on the parcel, with any remaining balance in most cases being divided on the following basis: county - 40 %; town or city - 20 %; and school district - 40 %. Property Tax Credits (Chapter 273, Minnesota Statutes) In addition to adjusting the taxable value for various property types, primary elements of Minnesota's property tax relief system are: property tax levy reduction aids; the circuit breaker credit, which relates property taxes to income and provides relief on a sliding income scale; and targeted tax relief, which is aimed primarily at easing the effect of significant tax increases. The circuit breaker credit and targeted credits are reimbursed to the taxpayer upon application by the taxpayer. Property tax levy reduction aid includes educational aids, local governmental aid, equalization aid, homestead and agricultural credit aid (HACA) and disparity reduction aid. Levy Limitations for Counties and Cities (M.S. 275.70 to 275.74 (Laws 1997, Chapter 231, Article 3)) Prior limitations restricting the ability of local governments in Minnesota to levy property taxes expired in 1993. New overall levy limitations are in effect for taxes levied in 1997 and 1998 for all counties and cities with populations exceeding 2,500. Levy increases are limited generally to 2.2% over the payable 1997 tax levy plus any increase due to growth in population. Certain property tax levies are authorized outside of the new overall levy limitation ( "special levies "). Special levies include debt service levies for bonded indebtedness, excluding installment payments on conditional sales contracts, debt service on state -aid road bonds, payments on contracts for deed, any levies to pay debt service on tax increment revenue bonds, and lease payments under certificates of participation_ In order to receive approval for any special levy claims outside of the overall levy limitation, requests for such special levies must be submitted to the Property Tax Division of the Department of Revenue on or before September 15th in the year in which the levy is to be made for collection in the following year. The Department of Revenue has the authority to approve, reduce or deny a special levy III -2 I I I request. Final adjustments to all levies must be made by the Department of Revenue on or before December 10th. Debt Limitations All Minnesota municipalities (counties, cities, towns and school districts) are subject to statutory "net debt" limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is defined as the amount remaining after deducting from gross debt the amount of current revenues which are applicable within the current fiscal year to the payment of any debt and the aggregate of the principal of the following: 1. Obligations issued for improvements which are payable wholly or partially from the proceeds of special assessments levied upon benefited property. 2. Warrants or orders having no definite or fixed maturity. 3. Obligations payable wholly from the income from revenue producing conveniences. 4. Obligations issued to create or maintain a permanent improvement revolving fund. 5. Obligations issued for the acquisition and betterment of public waterworks systems, and public lighting, heating or power systems, and any combination thereof, or for any other public convenience from which revenue is or may be derived. 6. Certain debt service loans and capital loans made to school districts. I 7. Certain obligations to repay loans. 8. Obligations specifically excluded under the provisions of law authorizing their issuance_ 9. Certain obligations to pay pension fund liabilities. 10. Debt service funds for the payment of principal and interest on obligations other than those described above. Levies for General Obligation Debt (Sections 475.61 and 475.74, Minnesota Statutes) Any municipality which issues general obligation debt must, at the time of issuance, certify levies to the county auditor of the county(ies) within which the municipality is situated. Such levies shall be in an amount that if collected in full will, together with estimates of other revenues pledged for payment of the obligations, produce at least five percent in excess of the amount needed to pay principal and interest when due. Notwithstanding any other limitations upon the ability of a taxing unit to levy taxes, its ability to levy taxes for a deficiency in prior levies for payment of general obligation indebtedness is without limitation as to rate or amount. Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes) "Fiscal Disparities Law" The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as "Fiscal Disparities," was first implemented for taxes payable in 1975. Forty percent of the increase in commercial - industrial (including public utility and railroad) net tax capacity valuation since 1971 in each assessment district in the Minneapolis /St. Paul seven - county metropolitan area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott, excluding the City of New Prague, and Washington Counties) is contributed to an area -wide tax base. A distribution index, based on the factors of population and real property market value per capita, is employed in determining what proportion of the net tax capacity value in the area- wide tax base shall be distributed back to each assessment district. III -3 STATUTORY FORMULAE CONVERSION OF ESTIMATED MARKET VALUE (EMV) TO NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS Net Tax Capacity Net Tax Capacity Net Tax Capacity Net Tax Capacity Net Tax Capacity General Classifications Levy Year 1994 Levy Year 1995 Levy Year 1996 Levy Year 1997 Levy Year 1998 Residential Homestead First $72,000 of EMV at 1.00% First $72,000 of EMV at 1.00% First $72,000 of EMV at 1.00% First $75,000 of EMV at 1.00% First $75,000 of EMV at 1.00% EMV in excess of $72,000 EMV in excess of $72,000 EVM in excess of $72,000 EMV in excess of $75,000 EMV in excess of $75,000 at 2.00% at 2.00% at 2.00% at 1.85% at 1.70% Residential Non - Homestead 3.40% 3.40 %; except certain cities of 3.40 %; except certain cities of 2.90 %; except certain cities of 2.50 %; except certain cities of 4 or more units 5,000 population or less 5,000 population or less 5,000 population or less 5,000 population or less at 2.30% at 2.30% at 2.30% at 2.15% Agricultural Homestead First $72,000 EMV of house, First $72,000 EMV of house, First $72,000 EMV of house, First $75,000 EMV of house, First $75,000 EMV of house, garage and 1 acre at 1.00% garage and 1 acre at 1.00% garage and 1 acre at 1.00% garage and 1 acre at 1.00% garage and 1 acre at 1.00% EMV in excess of $72,000 of EMV in excess of $72,000 of EMV in excess of $72,000 of EMV in excess of $75,000 of EMV in excess of $75,000 of house, garage and 1 acre house, garage and 1 acre house, garage and 1 acre house, garage and 1 acre house, garage and 1 acre at 2.00% at 2.00% at 2.00% at 1.85% at 1.70% Remaining Property: Remaining Property: Remaining Property: Remaining Property: Remaining Property: First $115,000 of EMV on First $115,000 of EMV on First $115,000 of EMV on First $115,000 of EMV on first First $115,000 of EMV on first 320 acres at 0.45% first 320 acres at 0.45% first 320 acres at 0.45% 320 acres at 0.40% first 320 acres at 0.35% EMV in excess of $115,000 on EMV in excess of $115,000 on EMV in excess of $115,000 on EMV in excess of $115,000 on EMV in excess of $115,000 on first 320 acres at 1.00% first 320 acres at 1.00% first 320 acres at 1.00% first 320 acres at 0.90% first 320 acres at 0.80% EMV in excess of $115,000 EMV in excess of $115,000 EMV in excess of $115,000 EMV in excess of $115,000 EMV in excess of $115,000 over 320 acres at 1.50% over 320 acres at 1.50% over 320 acres at 1.50% over 320 acres at 1.40% over 320 acres at 1.25% Agricultural Non - Homestead EMV of house, garage and EMV of house, garage and EMV of house, garage and First $75,000 of EMV of house, First $75,000 of EMV of house, 1 acre at 2.30% 1 acre at 2.30% 1 acre at 2.30% garage and 1 acre at 1.90% garage and 1 acre at 1.25% EMV of land and other buildings EMV of land and other buildings EMV of land and other buildings EMV in excess of $75,000 of EMV in excess of $75,000 of at 1.50% at 1.50% at 1.50% house, garage and 1 acre house, garage and 1 acre at 2.10% at 1.70% EMV of land and other buildings EMV of land and other buildings at 1.40% at 1.25% Commercial - Industrial First $100,000 of EMV at 3.00% First $100,000 of EMV at 3.00% First $100,000 of EMV at 3.00% First $150,000 of EMV at 2.70% First $150,000 of EMV at 2.45% EMV in excess of $100,000 EMV in excess of $100,000 EMV in excess of $100,000 EMV in excess of $150,000 EMV in excess of $150,000 at 4.60% at 4.60% at 4.60% at 4.00% at 3.50% Seasonal /Recreational Non - Commercial Non - Commercial Non - Commercial Non - Commercial Non - Commercial Residential First $72,000 of EMV First $72,000 of EMV First $72,000 of EMV First $75,000 of EMV First $75,000 of EMV at 2.00% at 2.00% at 1.75% at 1.40% at 1.25% EMV in excess of $72,000 EMV in excess of $72,000 EMV in excess of $72,000 EMV in excess of $75,000 EMV in excess of $75,000 at 2.50% at 2.50% at 2.50% at 2.50% at 2.20% Commercial - 2.30% Commercial - 2.30% Commercial - 2.30% Commercial - 2.10% Commercial — 1.80% Vacant Land N/A N/A N/A N/A N/A (All vacant land is reclassified to (All vacant land is reclassified to (All vacant land is reclassified to (All vacant land is reclassified to (All vacant land is reclassified to highest and best use highest and best use highest and best use highest and best use highest and best use pursuant to local zoning pursuant to local zoning pursuant to local zoning pursuant to local zoning pursuant to local zoning ordinance) ordinance) ordinance ordinance ordinance a I APPENDIX IV ANNUAL FINANCIAL STATEMENTS The City is audited annually by an independent certified public accounting firm. Data on the following pages has been extracted from the City's financial audited statements for years ending December 31, 1997, 1996 and 1995. Governmental funds and expendable trust funds are accounted for using the modified accrual basis of accounting. Proprietary funds are accounted for using the accrual basis of accounting. The reader should be aware that the complete audited financial statements may contain additional data relating to the information presented here, which may interpret, explain or modify it. The City's comprehensive annual financial reports for the years ending 1983 through 1996 were awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada (GFOA). The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. In order to be awarded the Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. IV -1 ully ut Or Uuhl : aul All Fund Types and Account (;ruiipq COMBINED BALANCE SHEET December 31, 1997 Totals Govemmental Fund Types Proprietary Fund Types Account Groups (Memorandum Only) _._.. - General General Soec,al (kbt Capital Internal Fixed Long -Term December 31, Geeerat Revenue Service Projects Enterprise Service Assets Debt 1997 1996 ASSETS ANDOTHER QE0115 Assets Cash and cash equivalents (Note 2) $2.576.390 $1,150,410 $1,162,128 $4,905,606 $1,814,641 $1,582,591 $13,191,766 $8,634,385 Investments (Note 2) 5.729.955 2,566,040 1,025,004 10,942,150 3,222,585 3,530,032 27,015,766 24,845577 Receivables: Accounts 51,154 5,750 16,426 1,159,340 4,160 1,236,830 1.513.020 Delinquent taxes (Note 1J) 179,799 8,765 188,564 208,862 Special assessments 6,290 1,513,799 715,578 330.747 2,566.414 2,125,826 Due from other funds (Note 9) 337,154 136,017 50,806 576,600 1,100,577 2.665,700 Due from other governments 91,192 41,124 135.564 187.171 455,051 436,662 Inventories and supplies (Note iG) 340,381 6,090 346,471 392,219 Prepaid expenses 142,039 142,039 159,568 Advances to other funds (Note 9) 105,074 1,827,453 1,932,527 1,959,413 Fixed assets (net of accum depr. where applicable) (Note 3) 36,326,136 2,492,033 $14,495,672 53,313,841 50,846,863 Other debits' Amount available in Debt Service Funds $2,237,549 2,237,549 2,260,484 Amount to be provided for General Long -Term Debt 24,132,451 24,932,451 16,269,516 Total Assets and Other Debits $9,077,008 $3,908,106 $3,751,737 $19,119,377 $43,523,040 $7,614,906 $14,495,672 $26,370,000 $127,859,846 $112,318,095 LIABILITIES. EOUtTY AND OTHER CREDITS Liabilities. Accounts payable $290,040 $14,808 $389 $92,964 $321,797 $11,678 $731,676 $864.354 f Contracts payable 300,021 151,056 451,077 864,622 N 715,577 385,000 1,100,577 2,484,939 Due to other funds (Note 9) Accrued salaries and wages 222,479 4,157 2,577 56,312 6,404 291,929 263,174 Accrued vacation 8 sick pay (Note IH) 601,810 22,757 66.965 26,502 718,034 702,342 Accrued health insurance .1,218,229 1,218,229 1,047,920 Accrued interest payable 32.994 32,994 35,835 698,143 1,234,384 1,932,527 1,959.413 +?dvances from other funds (Note 9) Deferred revenue (Note iJ) 1,360,899 8,765 1,513,799 819,728 3,703,191 2,850,683 General obligation bonds payable (Note 6) $22,450,000 22,450,000 15.500,000 Special assessment bonds with governmental commitment (Note 6) 3,920,000 3,920.000 3,030,000 Revenue bonds payable (Note 6) 1,565.000 1,565,000 1,720,000 Total Liabilities 2,475,228 748,630 1,514,188 1,930,867 3,813,508 1,262,813 26,370,000 38,115,234 31,323,282 Equity and Other Credits: Contributed capital (Note 4) 20 850.160 3,467,673 24,317,833 24,687,240 Investment in general fixed assets $74,495,672 14,495,672 14,536,095 Retained earnings: (Note 8 8 10) Reserved 571,137 571,137 567,521 Unreserved 18,288,235 2,884,420 21,172,655 19,296,663 Fund Balances: (Note 8 8 10) Reserved 105,074 2,945,726 2,237,549 9.392,353 14,680,702 7,137,287 Unreserved: 5516,204 5,516,204 5,665,070 Designated Undesignated 980,502 213,750 7,796.157 8,990,4(x) 9,102,937 Total Equity and Other Credits 6,601,780 3,159,476 2,237,549 17,188,510 39.709,532 6,352,093 14,495,672 89,744,612 80,994,813 Total Liabilities, Equity and Other Credits $9,077,008 $3,908,106 $3,751,737 $19,119,377 $43,523,040 $7,614,906 $14,495,672 $26,370,000 $127,859,846 $112,318,095 i City of Brooklyn Center All Fund Types and Account Groups COMBINED BALANCE SHEET December 31. 1996 Fiduciary Totals Governmental Fund Types Proprietary Fund Types Fund Types Account Groups (Memorandum Only) General General Special Debt Capital Internal Fixed Long -Term December 31, General Revenue Service Projects Enterprise Service Agency Assets Debt 1996 1995 ASSETS AND OTHER DEBITS Cash and cash equivalents $3,589,889 $2,518,656 $1,225.165 $3,974,917 $3,407,830 $2,418,803 $17,135,260 $8,503,266 Investments 5,484,065 3,767,031 1,268,333 5,945,090 4,763,372 3,617,686 24,845,577 34,713,369 Receivables: Accounts 163,658 30,867 1,312,692 5,603 1,513,020 1,253,006 Delinquent taxes 197,245 9,532 2,085 208,862 288,717 Special assessments: Deterred 1,230 774,989 928,756 325,550 2,030,525 1,521,792 Delinquent 5,957 6,556 78,412 4,376 95,301 69,874 C Due from other funds 873,932 776,058 203,619 812,091 2,665,700 2,991,215 W Due from other governments 37,818 212,261 132,977 234,367 617,423 2,331,440 Inventories and supplies 379,059 13,160 392,219 366,634 Prepaid expenses 159,568 159,568 143 :211 Advances to other funds 105,074 1,854,339 1,959,413 1,995,815 Restricted Investments 4,180,920 Investments for deferred compensation plan • at market $3,593,460 3,593,460 3,174,761 Properly, plant and equipment 43,365,090 4,696,440 $14,538,095 62,599,625 57,356,548 Less accumulated depreciation (9,487,340) (2,265,422) (11,752,762) (11,067,051) Amount available in Debt Service Funds $2,260,484 2,260,484 6,451,107 Amount to be provided for General Long- Term Debt 16,269,516 16,269,516 15,763,893 Total Assets and Other Debits $10,458,868 $7,283,538 $3,480,747 $ 13,757,449 $44,464,764 $8,486,270 $3,593,460 $14,538,095 $18,530,000 $124,593,191 $130,038,517 City of Brooklyn Center All Fund Types and Account Groups COMBINED BALANCE St WET December 31, 1996 Fiduciary Totals Governmental Fund Types Proprietary Fund Types Fund Types Account Groups Memorandum Only General General Special Debt Capital Internal Fixed Long -Term December 31, LIABILITIES, EQUITY AND OTHER CREDITS General Revenue Service Projects Enterprise Service Agency Assets Debt 19% 1995 iabilities Accounts payable $387.303 $11,865 $389 562,651 $305,382 $96.564 3864,354 3661,743 Contracts payable 724,560 140,062 864,622 1,299,696 Securities lending agreement 1.841,455 1,295,676 436,244 2,044,822 1,638,369 1,244,309 8,5W,875 8,424,500 Due to other governments 17,785 Due to other funds 350,886 1,552,809 762,005 2,665,700 2,991,215 Accrued salaries and wages 195,508 3,979 1,987 55,630 6,070 263,174 180,392 Accrued vacation 8 sick pay 594,728 21,420 59,659 26,535 702,342 661,325 Accrued health insurance 1,047,920 1,047,920 987,081 Accrued interest payable 35,635 35,835 37,760 Advances from other funds 698,143 1,261,270 1,959,413 1,995,815 Deferred revenue 917,376 9,532 783,630 1,140,145 2,850,683 3,709,963 Slate aid street bonds payable $2,295,000 2,295,000 2,455,000 Special assessment debt with government commitment 3,030,000 3,030,000 1,705,000 Tax increment bonds payable 13,205.000 13,205,0(10 18,055,000 Revenue bonds payable 1,720,000 1,720,0gW 1,830,000 Deferred compensation funds held for participants $3,593,460 3,593,460 3,174,761 Total liabilities 3,936,370 2,391,501 1,220,263 5,527,174 5,978,212 2,421,398 3,593,460 18,530.000 43,598,378 48,187,036 fauity and Other Credits f Contributed capital 21,042,114 3,645,126 24,687,240 24,656,207 Investment in general fixed assets $14,538.095 14,538,095 14,085,155 Retained earnings'. Reserved Debt Service 237,595 237,595 198,315 Special assessments 329,926 329,926 134,570 Unreserved 16,876,917 2,419,746 19,296,663 17,110,855 Fund Balances (Deficits): Reserved Debt service 2,260,484 2,260,484 6,451,107 Bond proceeds 2,896,472 2,896,472 3,477,619 Housing projects 20,918 20,918 Advances to other funds 105,074 1,854,339 1,959,413 1,995,815 Unreserved Designated'. Working capital 5,620,352 5,620,352 5,276,757 Unexpended appropriations 44,718 44,718 109,750 Undesignated 752,354 1,974,647 6,375,936 9,102,937 8,155,331 Total Equity and Other Credits 6,522,498 4,892,037 2,260,484 8,230,275 38,466,552 6,064,872 14,538,095 80,994,813 81,851,401 Total Liabilities, Equity & Other Credits $10,458,868 $7,283,538 $3,480,747 $13,757,449 544,464,764 $8,486,270 53,593,460 514,5 38,095 $18,530,000 5124,593,191 $130,038,517 a City of Brooklyn Center All Fund Types and Account Groups COMBINED BALANCE SHEET December 31, 1995 Fiduciary Tdtua Gove l.1-11a1 Food l yl — Ptopoelary Fund Types Fund Types Accounl Groups (Milmotandum ONy) j General General Special Debt Capital Internal Fixed long -Term December 31, General Revenue Set Projects Eulerpnse Service Agency Assets Deb 1995 1994 ASSLTS AND 0114ER DEBITS Cash and cash egwvalenls $615,176 $5.411 $450.390 $1,116,024 $1.037.573 $433,818 $3,658,392 $2.336.919 Inveslrnetds 5660,356 50,571 1.579,090 10,430,666 8,333,420 4,054588 30,108.711 24,780,469 Receivables Accounts 41,955 364 30,984 1.166,134 13.569 1,253,006 1,365,619 Delinquent taxes 282,251 936 12.158 295.345 247.644 Special assessments Deferred 12,691 465,750 905,638 131,422 1,515,501 1,546,406 1 Delinquent 654 7 757 57,978 3,148 69,537 58,838 Due from other funds 862,831 240,707 1,887,677 2,991.215 3.224, 154 Due from other governments 18,399 236,106 1,465,341 611,594 2,331,440 2,996,512 Inventories and supplies 356,589 10.045 366,634 346,449 Prepaitexpensea 143,211 143.211 143,151 Advances to other funds - 105,074 1,890,741 1.995,615 2,001,127 Restricted investments 4.180.920 1000,000 5,180920 5,182,119 Restricted receivables 473,344 Investments rot deferred compensation plan at market $3,174,761 3,174.761 2,635,726 Ptopeny, plant and equipment 39.081,292 4,190.101 $14,085.155 57,356,548 53,093.491 Less accunlutaled deprecial"I (8,861,698) (2.205.353) (11,067,051) (10,186,380) Amount available in Debt Service Funds $6,451,107 6,451,107 5,688,104 Amount to be provided tut General Long - Term Deb 15,763,893 15,763,893 12.011.8" Taal Assets and Other Debits 57 586.042 $305 .797 $6.925,550 $18,797,227 $42,002,685 56,496,768 $3,174,761 $14,065,155 $22,215,000 $121,588,985 S107,952,286 City of Omoklyn Center All Fund Types and Account Groups COMBINED BALANCE SHEET December 31, 1995 Frd.ovy Totals Guvenrmen fund Types pro pne l ary Fun Types Fund Types Account Groups Mnrwrand.m Only _ General General � Specral Oebl Capital Internal Feed Long Term Deamber 31. LIABILITIES, EQUITY AND OTHER CREDITS Genera ITe Semce prolecls Enlerpnse S-6 Agency Assets Debt 1905 1904 r o . 58.866 527]528 $103 $838,711 $767,202 Accounts payable $505587 31,373 397 1,204,89{ 127,485 Contracts payable 132 952.564 17.785 142,105 Due to ulhel 9-111 nls 17.185 o 9 344 1 050 477 595.755 29 91,215 392 3.250.158 Due 10 ther funds Accued salanes and wages 134,652 4.140 37,763 3,837 180,382 150,$73 Accrued vacando 8 sick pay 563 171 21.970 52.459 23.725 661,325 614,803 987,081 987 081 205.816 Accrued 1ea811 m.uonce Acauedmte7est payable 37,760 37.780 37.760 Advances Iwm other binds 698 143 t 297.672 1,885,815 2007,127 Uelerred rove... 700 NO 13 345 $414.443 2.432 115 3,709,863 3.835,336 54.710 l'.Um— payable bran re %Incled assets 52.455.000 2.455000 2.805,000 51ate aid .heel Iwnds p.y.bk Spatial rise —n-I debt with government 1,705.000 1, 705,000 1,010000 cornmJmenl 18055.000 18.055.0w 14085.000 I ax mcremem bonds payable t 630000 1.830.000 1830.000 Revenue bonds payable _ Llelenud campensahon funds field for $3.174.761 3,174, 761 2,835.726 I Total l.abihpes _ 1,751250 2057844 474,443 3.864.700 5.081,501 1 , 118.005 3,174,761 22.215000 39,737,504 33.322.749 [gully �tv O het Ggy�ls . 20 987 601 3858406 29.858,207 25.302 015 Conuct led capdal $18085.155 14085,155 12.985.809 Investment in general heed assets Relamed nammgs Reserved 198 315 198.315 90.625 Oebl Service 134 570 134 570 65,418 Special assessments 15 590 498 7 520.357 17,110 855 15.637.009 Lh -served Fund Balances 10e6u1s) keserved 8,451,107 5,888,104 Debt service 6 451 107 Bond proceeds 3,d77 619 3.977819 Dedicated housing accounl 1,000,000 1000000 1000000 Advances to usher funds 105074 1.890.741 1085,115 2007,127 223,951 Unexpended appropr1411011% Unreserved Desrgnaled 5,278,757 5.052.687 Working capital 5.276,157 108,750 58.652 Une.pended pprop -11-16 109 750 Undeslgnaled 343217 11.752047 8.564,187 7.155.331 6,320,082 lulsl Equ4y end Olher Gedds 5 834 792 (1752 047) 6,451,107 14 932.527 36.921.184 5.378.763 14,085 155 81,851,481 74,629,537 _ �.� _.,.. _,..... 0 ... l ulsr t �a mbpas Equdy a Or00— G bedas 57.586 114. ' 5"505 797 $6,B25,SSU 518,797.227 342002 _685 b05 $6. 496.768 $3 174 701 5 14,065,155 522.215,000 $121, 588,985 $107,952,266 J City of Brooklyn Center All Governmental Fund Types COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 1997 Totals Special Debt Capital (Memorandum Only) Revenues General Revenue Service Projects 1997 1996 Taxes and special assessments $6,327,890 $2,213,886 $253,169 $765,532 $9,560,477 $9,706,378 Licenses and permits 485,232 485.232 402.00r Intergovernmental 3,811,900 530,922 308,988 470.605 5,122.415 5,969,415 Charges for services 757,640 757,640 839,583 Court fines 183,270 183,270 186,761 Investment earnings 354,597 255,551 72,220 571,795 1,254,163 1,380,775 Miscellaneous 104,234 34,734 4,927 143,895 46,600 Total Revenues 12,024,763 3,035,093 634,377 1,812.859 17.507,092 18.531,520 Expenditures Current: General government 1,992,251 255 1,992,506 1,968,780 Public safety 5,089,072 18,777 5,107,849 5,022,324 Public works 1,868,130 1,868,130 1.649,52E Community services 79,800 79,800 78.442 Parks and recreation 2,186,686 26,104 2.212,790 2,282,054 Economic development 248.779 1,102,240 1,351,019 700,52?. Non- departmental 311,436 311,436 317,148 Administrative Services Reimbursement (661,058) (661,058) (611, outlay l it Capa ouay II I 2,126,026 2,707,295 4,833,321 5.814,12? Debt service: Principal retirement 1.135,000 1,135,000 5,125,OOC Interest and fiscal charges 1,019,188 50.090 1,069,278 1,285.416 Total Expenditures 11,115,096 3,273,402 2,154,188 2,757,385 19,300,071 23,631.801 Excess or Deficiency( -) of Revenues Over Expenditures 909,667 (238,309) (1,519,811) (944,526) (1,792,979) (5,100,281) Other Financing Sources or Uses( -) Proceeds from sale of bonds 63,818 8,911,182 8,975,000 1,430,486 Operating transfers in 100,000 577,895 1,730,440 567.950 2,976,285 5,653.524 Operating transfers out (624,637) (2,077,895) (173,753 (2.876,285) (5,553,524: Total Other Financing Sources or Uses( -) (524,637) (1,500,000) 1,794,258 9,305,379 9,075,000 1,530,486 Excess or Deficiency( -) of Revenues and Other Sources Over Expenditures and Other Uses 385,030 (1,738,309) 274,447 8,360.853 7,282.021 (3,569,795_ Fund Balances January 1 6,522,498 4,892,037 2,260,484 8,230,275 21,905,294 25,475.089 Equity Transfers In (Out) (305,748) 5,748 (297,382) 597,382 Fund Balances December 31 $6,601,780 $3,159,476 $2,237,549 $17,188,510 $29,187,315 $21,905,294 IV -7 City of Brooklyn Center All Governmental Fund Types COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICITS) For the Year Ended December 31, 1996 Totals Special Debt Capital Memorandum Only Revenues General Revenue Service Projects 1996 1995 Taxes and special assessments $6,120,877 $2.619,170 $366,948 $607,887 $9,714,882 $8,718,252 Licenses and permits 402,000 402,000 318,202 Intergovern mental 3,618,075 73,043 308,273 1,970,028 5,969,419 5,150,047 Charges for services 839,583 3,742 843,325 828,794 Court fines 186,761 186,761 178,263 Investment eamings 312,831 344,234 181,250 545,741 1,384,056 1,215,231 Miscellaneous 15,919 30,681 46,600 32,025 Total Revenues 11,496,046 3,070,870 856,471 3,123,656 18,547,043 16,440,814 Expenditures Current: General government 1,736,334 1,736,334 1,831,045 Public safety 5.022,324 5,022,324 4,598,618 Public works 1,270,438 1,270,438 1,363244 Community services 78,442 78,442 41,146 Parks and recreation 2,282,054 6,813 2,288,867 2,240,507 Economic development 201,600 498,922 700,522 776,532 Non - departmental 317,148 317,148 289,747 Capital outlay 608,875 5,205,248 5,814,123 3,493,127 Debt service: Principal retirement 5,125,000 5,125,000 825,000 Interest and fiscal charges 34,914 1,109,860 140,642 1,285,416 1,248,825 Total Expenditures 10,908,340 1,149,524 6,234,860 5,345,890 23,638,614 16,707,791 Excess or Deficiency( -) of Revenues Over Expenditures 587,706 1,921,346 (5,378,389) (2.222.234) (5,091,571) (266,977) Other Financino Sources or Usesf -) Proceeds from sale of bonds 7,766 1,422,720 1,430,486 5,284,753 Operating transfers in 100,000 193,524 5,360,000 5,653,524 1,793,736 Cperating transfers out (1,373,524) (4,180,000) (5,553,524) (1,693,736) Total Other Financing Sources or Uses( -) 100,000 (1,180,000) 1,187,766 1,422,720 1,530,486 5,384,753 Excess or Deficiency( -) of Revenues and Other Sources Over Expenditures and Other Uses 687 ,706 741,346 (4,190,623) (799,514) (3,561,085) 5,117,776 Fund Balances (Deficits) January 1 5,834,792 4,214,374 6,451,107 8,966,106 25,466,379 20,348,603 Equity Transfers Out (63,683) 63.683 Fund Balances (Deficits) December 31 $6,522,498 $4,892,037 $2,260.484 $8,230275 $21,905,294 $25,466,379 IV -8 City of Brooklyn Center All Governmental Fund Types COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICITS) For the Year Ended December 31, 1995 Totals Special Debt Capital Memorandum O_ my Revenues General Revenue Service Projects 1995 1994 - Taxes and special assessments $5,946,363 $1.766.376 $351.890 $653,623 $8,718,252 $8.053,17" Licenses and permits 318,202 318,202 317,62 Intergovernmental 3,543,009 264,641 1.342.397 5,150,047 4,350,181 Charges for services 822,530 6.264 828,794 844,37?. Court fines 178.263 178,263 113,57: Investment earnings 256,304 3,114 253.540 702.273 1.215.231 1,177.21(, Miscellaneous 15,205 16,820 32,025 50,730 Total Revenues 11,079,876 2,040,395 605.430 2,715,113 16.440,814 14,906,92: Expenditures Current'. General government 1.831,045 1.831,045 1,692.26f Public safety 4,598,618 4.598,618 4.409,490 Public works 1,363,244 1.363,244 1.230,565 Community services 41,146 41,146 4149° < Parks and recreation 2,226,121 14.386 2,240 507 2,074.631 Economic development 209,576 44.025 522,931 776.532 1.001.991 Non - departmental 289.747 289,747 312.779 Capital outlay 3,493,127 3,493.127 1.732.86: Debt service: Principal retirement 825.000 825,000 780.000 Interest and fiscal charges 78.277 1.077 985 92,563 1,248.825 1.272.975 Total Expenditures 10,559,497 136.688 1,902.985 4,108.621 16,707,791 14.549067 Excess or Deficiency( -) of Revenues Over Expenditures 520,379 1,903.707 (1,297.555) (1,393,508) (266,977) 357.85E Other Financino Sources or Uses( -) Proceeds from sale of bonds 468.833 4,815 920 5.284.753 828.513 Operating transfers in 100,000 1.591 725 408.736 2.100.461 2.673.99C Operating transfers out (1.549.641) (450,820) (2.000.461) (2.698.832 Total Other Financing Sources or Uses( -) 100.000 (1.549.641) 2.060.558 4,773,836 5,384.753 801671 Excess or Deficiency( -) of Revenues and Other Sources Over Expenditures and Other Uses 620,379 354 066 763,003 3,380,328 5.117,776 1.161.527 Fund Balances (Deficits) January 1 - 5,214.413 (2.106.113) 5.688,104 11.552.199 20.348.603 19.345.15• Equity Transfers Out (658,078) Fund Balances (Deficits) December 31 $5,834,792 ($1,752,047) $6,451,107 $14,932,527 $25.466.379 $20,348,603 City of Brooklyn Center _ General and Special Revenue Funds COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended December 31, 1997 General Fund Special Revenue Funds Actual Over Actual Over Under( -) Under( -) Budget Actual Budget Budget Actual Budget Revenues Taxes and special assessments $6,764,878 $6,327,890 ($436,988) $1,989,326 52,213,886 $224,560 Licenses and permits 300,160 485,232 185,072 intergovemmentai 3,762,484 3,811,900 49,416 493,108 530,922 37,814 Charges for services 905,944 757,640 (148,304) Court fines 192,000 183,270 (8,730) Investment eamings 270,000 354,597 84,597 105,000 255,551 150,551 Miscellaneous 62,600 104,234 41,634 30,322 34,734 4,412 Total Revenues 12,258,066 12,024,763 (233,303) 2,617,756 3,035,093 417,337 Expenditures General government 2,116,120 1,992,251 (123,869) 10,000 255 (9,745) Public safety 5,297,175 5,089,072 (208,103) 106,847 29,461 (77,386) Public works 1,991,769 1 (123,639) Community services 80,000 79,800 (200) Parks and recreation 2,362,742 2.186,686 (176,056) 112,308 26,104 (86,204) Economic development 249,570 248,779 (791) 3,326,989 3,217,582 (109,407) Non - departmental 377,200 311,436 (65,764) Admin. Services Reimbursement (699,141) (661,058) 38,083 Total Expenditures 11,775,435 11,1 15,096 (660,339) 3,556,144 3,273.402 (282,742) Excess or Deficiency() of Revenues Over Expenditures 482,631 909,667 427,036 (938,388) (238,309) 700,079 Other Financino Sources or Uses( -) Operating transfers in 100,000 100,000 398,454 577,895 179,441 Operating transfers out (624,637) (624,637) (1,898,454) (2,077,895) (179,441) Total Other Financing Sources or Uses( -) (524.637) (524,637) 0 (1,500,000) (1,500,000) 0 Excess or Deficiency( -? ::f Revenues and Other Sources Over Expenc ;ures and Other Uses (42,006) 385,030 427,036 (2,438,388) (1,738,309) 700,079 Fund Balances January 1 6,522,498 6,522,498 4,892,037 4,892,037 Equity Transfer In (Out) (305,748) 5,748 5,748 Fund Balances December 31 $6,480,492 $6,601,780 $427,036 52,453,649 $3,159,476 $705,827 IV -10 City cf Brocktyn Center General and Special Revenue Funds COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended December 31, 19% General Fund Special Revenue Funds Actual Over Actual Over Under( -) Under( -) Budget Actual Budget Budget Actual Budget Revenues Taxes and special assessments $6,355,958 $6,120,877 ($235,081) $1,643,539 $2,619,170 $975,631 Licenses and permits 348,850 402,000 53,150 Intergovernmental 3,540,018 3,618,075 78,057 287,428 73,043 (214,385) Charges for services 886,068 839,583 (46,485) 12,000 3,742 (8,258) Court fines 144,000 186.761 42,761 Investment earnings 250.000 312.831 62,831 106,000 344,234 238,234 Miscellaneous 13,833 15,919 2,086 30,681 30,681 Total Revenues 11,538,727 11,496,046 (42,681) 2,048,967 3,070,870 1,021,903 Expenditures General government 1,873,246 1,736,334 (136,912) Public safety 5,162,530 5,022,324 (140,206) Public works 1,545,021 1,270,438 (274,583) Community services 79,047 78,442 (605) Parks and recreation 2,502,915 2,282,054 (220,861) 30,000 6,813 (23,187) Economic development 228,000 201,600 (26.400) 1,827.442 1,107,797 (719,645) Non - departmental 337,371 317,148 (20,223) Interest and fiscal charges 90,000 34,914 (55.086) Total Expenditures 11,728,130 10.908,340 (819,790) 1,947,442 1,149,524 (797,918) Excess or Deficiency( -) of Revenues Over Expenditures (189,403) 587,706 777,109 101,525 1,921,346 1,819,821 Other Financing Sources or Uses( -) Operating transfers in 100,000 100,000 407,064 193,524 (213,540) Operating transfers out (1,587,064) (1,373,524) 213,540 Total Other Financing Sources or Uses( -) 100,000 100,000 0 (1,180,000) (1,180,000) 0 Excess or Deficiency( -) of Revenues and Other Sources Over Expenditures and Other Uses (89,403) 687,706 777,109 (1,078,475) 741,346 1,819,821 Fund Balances January 1 5,834,792 5,834,792 4214,374 4,214,374 Equity Transfer Out ( 63 . 683 ) ( 63 . 683 ) Fund Balances December 31 $5,745,389 $6,522,498 $777,109 $3,135,899 $4,892,037 $1,756,138 IV -11 City ul th-Hy" Center Geeend, 51wcnl Ruvenuo and Annually Budgutud Capital Projects Funds COMBINED STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCES - BUDGE T AND ACTUAL For the Year Ended December 31, 1995 Annually Budgeted Gen Fund Special Revenue Funds Capital Projects Funds Actual Over Actual Over Actual Over Under( -) Under( -) Under( -) Budget Actual Budget Budget Actual Budget Budget Actual Budget r•v � Taxes and special ussesuments $6,398,165 $5.946,363 ($451,802) $1,408,724 $1,766,376 $357,652 $291,527 $290,151 ($1,316) Licenses and permits 296,400 318,202 21,802 Intergovernmental 3,489,876 3,543,009 53,133 253,334 264,641 11,307 18,304 18,304 Charges for services 897,732 822,530 (75,202) 12,000 6,264 (5,736) Court lines 112,000 178,263 66,263 Investment earnings 186,000 256,304 70,304 1,000 3,114 2,114 62,500 142,218 79,718 Miscellaneous 14,000 15,205 1,205 23,500 12,845 (10,655) Total Revenues 11,394,173 11.079,876 (314,297) 1,675,058 2,040,395 365,337 395,831 463,518 67,687 x a[L!WM General government 1,966,016 1,831 045 (134,971) Public safety 4,662,748 4,598,618 (264,130) t Public vvorka 1,560,386 1,363,244 (197,142) fV Community services 41,146 41,146 Parks and recreation 2,401,651 2,226,121 (175,530) 30 000 14,366 (15,614) Economic development 209,625 209,576 (49) 42,824 44.025 1,201 4,694,445 1,023,194 (3,611,251) Non- departmental 405,351 289,747 (115,604) Interest and liscal charges 98,000 78,277 (19,723) Total Expenditures 11,446,923 10,559,497 (887,426) 170,824 136,688 (34,136) 4,694,445 1,023,194 (3,671,251) Excess or Deficiency( -) of Revenues Over Expenditures (52,750) 520,379 573,129 1,504,234 1,903,707 399,473 (4,298,614) (559,676) 3,738,938 olller Sources or UsetU Sale of bonds - 4,045,280 4,045,280 Operating transfers In 100 000 100,000 390,308 401,379 11,071 Operating transfers out (1,538,334) (1,549,641) (11,307) (136,974) (136,738) 236 Total Other Financing Sources or Uses( -) 100,000 100,000 0 (1,538,334) (1,549,641) (11,307) 4,298,614 4,309,921 11,307 Excess or Deficiency( -) of Revenues and Other Sources Over Expenditures and Other Uses 47,250 620,379 573,129 (34.100) 354,066 388,166 0 3,750,245 3,750,245 Fund Balances (Deficits) January 1 5,214,413 5,214,413 (2,106,113) (2,106,113) 2,216,178 2,218,176 Fund Balances (Deficits) December 31 _ $5,261,663 $5,834,792 $573,129 ($2,140,213) ($1,752,047) $388,166 $2,216,176_ $5,988,421 ,_. $3,160,245 City Council Agenda Item No. 8b • • MEMORANDUM Date: November 18, 1998 To: Michael McCauley, City Manager From: Joyce Gulseth Public Works Administrative Aide'" Subject: Resolution Expressing Recognition and Appreciation for the Public Service of Organizations participating in Brooklyn Center's Adopt -A -Park, Adopt -A- Trail, and Adopt -a- Street Programs Supported by the efforts of 38 groups or individuals, the Adopt- A- Park/Trail /Street Program plays an important role in helping maintain City parks, trails, public grounds, and streets. The program was established in 1992 through the supportive efforts of the Park and Recreation Commission and the public works staff. Facilities selected were those which staff believed could benefit most from "adoption." Nov in its seventh year, the program continues to grow with a high level of participation indicating a great amount of community support for our extensive park system, and a desire to maintain its quality. • The volunteer groups represent a cross-section of the community including service organizations b p p t zY b b employee groups, schools, scouts, churches and neighborhood groups. The organizations are recognized by small signs at their adopted facilities. At the beginning of the 1998 season 19 groups had fulfilled their two -year commitment and were offered an opportunity to extend their adoption for another two -year period. All 19 groups chose to extend their commitment and two new groups have been added. A listing of the volunteer groups and their adopted facilities is attached. The attached resolution thanks the groups for their commitment to this program. • • Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION EXPRESSING RECOGNITION AND APPRECIATION FOR THE PUBLIC SERVICE OF ORGANIZATIONS PARTICIPATING IN BROOKLYN CENTER'S ADOPT -A -PARK, ADOPT -A- TRAIL, AND ADOPT -A- STREET PROGRAMS WHEREAS, the City Council of the City of Brooklyn Center determined that it is in the City's interest to operate volunteer programs that involve the community in the maintenance of city parks, trails, and streets; and WHEREAS, the following organizations have generously volunteered their time and energy participating in the Adopt -A -Park, Adopt -A- Trail, and Adopt -A- Street programs; and WHEREAS, it is appropriate that their service to the community be recognized. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that the public service of the following groups is hereby recognized and appreciated: Allina Receivable Services Friends of Freeway Park Barnacle Bill's Steak & Seafood Friends of Riverdale Park Boy Scout Troop #401 Garden City Elementary Boy Scout Troop #454 Girl Scout Troop #1469 Brookdale Chrysler Plymouth Girl Scout Troop #1789 Brooklyn Center Charter Commission Kids On The Move Daycare Brooklyn Center Lions Club Looney Weavers Brooklyn Center Lioness Club Minneapolis North Hilton Staff Brooklyn Center Rotary Club Orchard Lane Elementary School Brooklyn Swim Club Palmer Lake Elementary Brooklyn United Methodist Church Park & Recreation Commission Brookpark Dental Center Ray and Dolores Beach Bullfrogs and Butterflies Childcare Region B Campfire Boys and Girls Children's Residential Services Rise Creative Partnerships Cub Scouts Pack 299 Riverwood Neighborhood Association Cub Scouts Pack 401 Target, Brooklyn Center "Good Neighbors" Cub Scouts Pack 454 Tim Olson Earle Brown Elementary Todd Paulson Family Evergreen Park School & PTO Willow Lane Student Council RESOLUTION NO. Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof. and the following voted against the same: whereupon said resolution was declared duly passed and adopted. • • City Council Agenda Item No. 8c i j • MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Tom Bublitz, Community Development Specialis DATE: November 18, 1998 SUBJECT: An Ordinance Amending Chapter 12 of the City Ordinances Implementing a Time of Sale Housing Inspection, Requiring an Inspection, Disclosure of Consumer Information Concerning the Condition of a Dwelling Prior to its Sale, and Correction of Certain Hazardous Conditions In a motion made at the June 22, 1998 City Council meeting and clarified at the July 13, City Council meeting, the Council voted to send the proposed Time of Sale ordinance back to the Housing Commission and allow the Housing Commission three meetings to review the ordinance and data from the Minneapolis Area Association of Realtors regarding buyer inspections. After three meetings the Housing Commission was directed to report to the City Council with a recommendation. The Housing Commission met in July, August and October to address the Council's directive. The Housing Commission did not meet in September since their meeting date fell on Primary Election night. At the October 20, 1998 Housing Commission meeting, the Housing Commission reviewed the Council's concerns regarding the Time of Sale ordinance and made a final recommendation to the City Council regarding the ordinance. The Commission's recommendations were as follows: The Housing Commission, on a 5 -2 vote passed the following motion: • The Housing Commission moved to incorporate the language from the City of Minneapolis' ordinance regarding the requirement to correct hazardous items even if the house does not sell. This was done to clarify the proposed Brooklyn Center ordinance. The Minneapolis ordinance language reads "all required repair /replace items must be completed by the buyer or seller within 90 days of the date of the disclosure report whether or not the property is sold, unless otherwise excepted by this Chapter ". • The Housing Commission's motion also requested that Section 12 -1511 IMMEDIATE HAZARDS should be clarified particularly paragraph b in Section 12 -1511 of the proposed ordinance. Staff incorporated the revisions recommended by the Housing Commission into the proposed ordinance. The ordinance, as amended per the recommendations of the Housing Commission is included with this memorandum as ALTERNATE (AMENDED). The "Alternate" ordinance was . the version of the ordinance that was published. The amended version contains additions recommended by the Housing Commission at their October 20, 1998 meeting. No deletions were • MEMORANDUM Michael J. McCauley Page 2 made to the original "Alternate" ordinance and the language added is shown in bold face type which sets off the added language from the original published language. The additions in the amended alternate ordinance incorporate language from the Minneapolis Time of Sale ordinance in Section 12- 1508 paragraph 2 and additions clarifying Section 12 -1511 are found in Section 12 -1511 and Section 12 -1508 paragraph 3(a) and (b). Also, 12 -1508 5(b) is amended to extend the 90 day correction period when the buyer does the correction of hazardous items. MINNEAPOLIS AREA ASSOCIATION OF REALTORS TIME OF SALE POLICY AND DATA ON BUYER INSPECTIONS The Housing Commission received and reviewed data from the Minneapolis Area Association of Realtors on buyer inspections. The Minneapolis Area Association of Realtors report on buyer inspections is included with this memorandum along with their policy on Time of Sale Ordinances. ADDITIONAL BACKGROUND INFORMATION Also included with this memorandum is the October 20, 1998 Housing Commission minutes and excerpts from previous City Council minutes relative to the Council's discussion of the Time of Sale ordinance. • G:\ DEPTS\ EDA\BUBLITZ\MEMOS \1998\MMC1.118 ALTERNATE (AMENDED) CITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the 22nd day of June, 1998, at 7 p.m. or as soon thereafter as the matter may be heard at the City Hall, 6301 Shingle Creek Parkway, to consider an ordinance amending Chapter 12 of the City Ordinances Implementing a Time of Sale Housing Inspection, Requiring Inspection, Disclosure of Consumer Information Concerning the Condition of a Dwelling Prior to its Sale, and Correction of Certain Hazardous Conditions. Auxiliary aids for persons with disabilities are available upon request at least 96 hours in advance. Please contact the City Clerk at 569 -3300 to make arrangements. ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 12 OF THE CITY ORDINANCES IMPLEMENTING A TIME OF SALE HOUSING INSPECTION, REQUIRING INSPECTION, DISCLOSURE OF CONSUMER INFORMATION CONCERNING THE CONDITION OF A DWELLING PRIOR TO ITS SALE, AND CORRECTION OF CERTAIN HAZARDOUS CONDITIONS - THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS FOLLOWS: Section 1. a Ch pter 12 of the City Ordinances of the City of Brooklyn Center is amended by adding the following: Section 12 -1501. PURPOSE. The purpose of this Section is to enhance the supply of safe. sanitary and adequate housing for citizens of the city_ of Brooklyn Center and to prevent the deterioration of existing housing. Section 12 -1502. DEFINITIONS. The following words and terms when used in this Section shall have the following meanings. unless the context clearly indicates otherwise: L "Dwelling" - a building. or portion thereof. designed or used predominantly for residential occupancy of a continued nature including one- fam ily dwellings. two - family dwellings, and multiple family dwellings: but not including hotels and motels.. 2. "Dwelling Unit" - a sin residential accommod which is arranged. designed. used or. if vacant. intended for use ex clusively as a domicile f or one family. Where a private garage is structurally attached. it shall be cons idered as part of the buildin in which the dwelling unit is located. 3. "Mobile home" - (includes "Manufactured" Homes). A single familv detached dwelling unit designed for yea -round occupancy, constructed a t a factory or assembly plant and drawn to the site on atta under carriage and w heels. "Mobile Home' shall not include ® ORDINANCE NO. "Recreation Vehicle" as herein defined. nor shall it include modular or prefabricated dwelling units which meet or exceed the requirements of the Ifni form Building Code. "Evaluation report" - a written repprt prepared and signed by a person licensed as a time of sale housing evaluator in a community recognized by the City of Brooklyn Cen ter on a. farm in compliance with Section 12 -1506 of this Code.. "Immediate hazard" - a condition or defect which is likely_ to cause injury to a person or propertv if not corrected. r "Issuing Authority" - the City Manager or his/her designated representative. "Owner's Agent" - a person who acts for or has the power or authority to act for the owner of a dwelling unit. "Sale" - the transfer of title or possession of a dwelling unit whether or not absolute title is transferred. "Vacant" - a dwelling unit which is not occupied. • Section 12 -1503. INSPECTION AND EVALUATION REPORT REOUIRED. 1. Except as set forth in Section 12 -1504 of this Code. no dwelling unit or mobile home located within the City may be voluntarily conveyed for consideration by deed or contract for deed until the owner or owner's agent has first applied for and secured an evaluation prepared by an evaluator meeting the requirements under Section 12- 1505 of this Code. 2. A valid evaluation report issued for the dwelling unit in question shall be provided to the buyer prior to the execution of a purchase agreement. The buyer shall be supplied a copy of the written report an now receipt shall sign a copy acknowledging of that r p rt - - - - - - 3. If the structure is in compliance with requirements of Section 12 -1508 of this Code. the evaluation report shall state that the structure has been inspected and is in conformance. An evaluation, report ig valid for one vear from the date of its issuance. The report is valid only for the owner listed on the report. 4. No person shall offer for sale by exhibiting or s howing a dwe llinaun it within the city without having first obtained an inspection and evaluation report as described in this Section. The evaluation report s hall be conspicuously displayed for inspection at the premises at all times that such dwelling unit is being offered for sale. • Section 12 -1504. EXCEPTIONS. The provisions of Section 12 -1503 do not apply to: ORDINANCE NO. 1. Anv newly constructed dwelling unit when title is transferred to the first owner. 2. The sale or other transfer of title of anv dwelling unit to a public bodv. 3. The sale or transfer of title of any dwelling unit for the purpose of demolition. 4. The sale or convevance of anv dwelling unit by a sheriff or other public or court officer in the performance of their official duties. This exemption does not apply to the sale of a dwelling unit b a person app ointed by a probate court. 5. The sale or convevance of anv entire multiple _family building. Section 12 -1505. EVALUATOR REOUIREMENTS. 1. Evaluators conducting evaluations and completing evaluation reports under this Code must maintain a current unexpired Certificate of Competency issued by the City of Minneapolis. St. Paul or Bloomington. The City Council may. by resolution. recognize Certificates of Competency from additional cities. Evaluators must also show proof that he or she has a current unexpired Certificate of Competencv from at least one of the aforementioned recognized cities. . 2. Evaluators conducting evaluations and completing evaluation reports under this Code shall also show proof of general liability insurance insuring the evaluator with insurance coverages and liability limits which may be specified from time to time by resolution of the City Council. The evaluator shall maintain insurance continuously in force thereafter. The city shall be included as a named insured on the insurance required herein at the expense of the evaluator. The evaluator shall furnish the city_ with a certificate of insurance which meets the city requirements. 3. The city shall maintain a list of the names and telephone numbers of evaluators who meet the requirements of this section. The list shall be available to the public. Section 12 -1506. FORMS. The city shall prepare or authorize use of forms as it deems appropriate to constitute a disclosure under Sections 12 -1501 through 12 -1511. The form shall provide information concerning Code reauirements. major structural defects and immediate hazards to health. safety and property. ORDINANCE NO. • Section 12 -1507. DUTIES OF EVALUATORS. 1. Each evaluator shall comply with the following: a. Maintain a current license with one of the recognized cities. b. Conduct all evaluations within the program's guidelines. e. Meet required continui.nu education requirements established by the recognized cities. listed in Section 12 -1505. 2. Each evaluator shall comply with the following procedure for preparing and filing reports: a. The evaluation report shall. be either typewritten or legibly printed in ink on forms furnished by the city. The report shall indicate whether the condition of the dwelling unit meets city requirements. is below city requirements or is deemed to be hazardous at the time and date of the evaluation. b. The evaluator shall submit the original evaluation report to the seller. The evaluator shall keen a duplicate cony. Section 12 -1508. CORRECTION OF IM MEDIATE HAZARDS. 1. The following items. when discovered by the evaluator. shall be identified as immediate hazards in the evaluation report: a. Heating systems that are unsafe Niue to burned out or rusted heat exchangers. burned out. rusted or plugged flues, no vent. connection with unsafe gas supplies or incapacity to adequately heat the living space. b. Water heaters that are unsafe due to burned out or rusted heat exchangers. burned out. rusted or plugged flues. no vent. connection with unsafe gas supplies or lack of temperature and pressure relief valves. e. Electrical systems that are unsafe due to dangerous overloading. damaged or , deteriorated equipment. improperly taped or spliced wiring. exposed uninsulated wires. temporary distribution systems. or ungrounded systems. d. Plumbing systems that are unsanitary due to leaking waste systems. fixtures or trans. lack of an operating toilet. lack of washing and bathing facilities. cross connection of municipal water supply with fixtures or sewag_ e lines. or the lack of water. e. Structural systems including walls. chimnevs. ceilings. roofs. foundations. floor systems or decks which are not capable of carrying imposed loads. f. Exterior roofs. walls. chimneys and foundations that are not weather tight and water tight to the extent that it creates an immediate hazard. g Abandoned storage tanks. h. Lack of operational smoke detectors located in accordance with the applicable provisions of the Uniform Building Code. o ORDINANCE NO. • 2. No occunancv shall be permitted of any dwelling unit if vacant and an immediate . hazard exits. If the dwelling unit is occupied and an immediate hazard exists, corrective action shall be taken by the owner or anent of the owner. All required repair/replace items must be completed by the buyer or seller within ninety (90) days of the date o the discl osure revort whether or not the prop r t y is sold. unless otherwise excepted by this ordinance. 3. When correcting identified hazards the owner shall obtain all necessary permits from the city and the premises shall he subject to inspection by an evaluator prior to occupancv of the dwelling. a. When identified hazards. not reouirine a Permit from the City. are corrected thev shall be re- inspected by an evaluator. When the identified hazards are corrected. the evaluator shall indicate this on the evaluation report. b. When identified hazards, requiring a permit from the Citv. are corrected. they shall be inspected by a City Building Inspector as part of the permit inspection Process. When the identified hazards are corrected. the inspector shall indicate this on the evaluation report. � The �ru��r n�a� e€r r ant an � e "` en the ell�rfhats�rc���d a� e bu��r �� a. a signed agreement from the buyer accepting responsibility for correction of the hazar dous items: e. evidence of financial ability to perform the corrections. The buy_ er shall complete the correction . of identified immediate hazards by specified completion date. 5. If the owner is a government agency or if an agreement exists between the owner and buver that the buver will correct immediate hazards as Dart of a remodeling project. the buver may correct immediate hazards identified in the evaluator's revort. A buver intending to correct immediate hazards must have written consent from the Issuing Authoritv. Such written consent may be subiect to the terms and conditions including: a, a signed agreement from the buyer accepting responsibility for correction of the hazardous items: ® ORDINANCE NO. b. reasonable completion dates (no more than 90 days after buyer takes possession): e. evidence of financia ability to per form the corrections. The buy_ er shall complete the correction of identified immediate hazards by the specified completion date. Section 12 -1509. FAILURE TO COMPLY. 1. The failure of a owner, agent of an own er or buyer to comply with the provisions of Sections 12 - 1501 through 1 ?, 1.51 or to comply with an order issued by the city pursuant to this Code. shall be a misdemeanor. 2. The failure of anv evaluator to comply with the provisions of Section 12 -1505 shall be a misdemeanor and may result in de- certification by the citv. 3. The city may also enforce provisions of Sections 12 -1501 through 12 -1512 by mandamus, injunction. or other appropriate remedy in a court of competent iurisdiction. Section 12 -1510. WARRANTY LIMITATIONS. 1. Nothing in the evaluation report shall indicate or shall be deemed to indicate that a dwelling unit meets all m inimum main tenance. housing and building standards. 2. Evaluations conducted ptjL,;gant, to Sections 1501 through 1512 are made in order to improve the overall housing stock in the city and are not meant to be a warrantv or guarantee of the dwelling unit evaluated. The report issued by the evaluator is not a representation to any individual buver seller or renter regarding the condition of the building nor is the report intended for the special benefit of anv individual. 2. The Citv of Brooklvn Center shall n incur liability to a buyer or any other person by reason of performance or non- nerformance of the provisions of Sections 12 -1501 through 12 -1512. VR l 1 t r e�al r' ' F �, a� a /`� `4 :: l z _., �} , `k ljn ;: a ._ %. • � <���`.��nlYy F �» ��£ i Wit' s • ORDINANCE NO. Section 12 -1512. APPEAL. A person aaarieved by a decision. notification or order under this ordinance may appeal . such decision. notification or orde to the council which ma y reverse. modify or affirm the same after a hearing upon notice to the appellant. The a ppeal must (i ) be in writing. (ii) snecifv the decision. notification or order appealed form, (iii) specify with particularity the basis and grounds of the appeal. and (iv l be filed wit the clerk on or before 20 days followi the date of the decision. notification or order. Section 12- 1513. EFFECTIVE DATE. Sections 12 -1501 through 12 -1512 shall be effective for dwelling units convey_ ed on or after January 1. 1999. Section 2. This ordinance shall be effective after adoption and thirty days following its legal publication. Adopted this day of , 1998 Mayor ATTEST: City Clerk Date of Publication Effective Date (Brackets indicate matter to be deleted, underline indicates new matter.) MrLJ KtHL I,UKJ HSJUI, . 1 tL NO Jun ZS JzZ 1J 1L NO .UUO r .U2 Time of Sale Housing inspection Ordinances Minneapolis Area Association of REALTORS housing exteriors, responding to Position statement individual complaints about problem properties, and setting A primary concern of the Mirnre up a revolving loan fund to assist apolis Area Association of REAL - homeowners with city mainte- TORS is a healthy housing Hance requirements resulting stock. This is especially true at a from these inspections. time when the majority of hous- � Homeowners would need to ing in our cities and inner ring qualify for these loans and could suburbs shows increasing signs of repay them when the property is age. sold unless the homeowner However, the Association does not continued to live in the property believe that requiring code com- for a specified time before selling pliance at the point of sale will the property. effectively assist a community in If a municipality determines maintaining a Healthy, affordable housing market. Point of sale there is a need for a point of sale inspection program, the Aasocia- inspections affect only the small p tion would support a truth in percentage of houses that are sold each year (3 to 5 percent in most housing report by a certified private inspector rather than areas). Most problem houses are code compliance. Any resolution not for sale at any given time. To of repairs based on the inspec- increase its effectiveness, a mu- tion should be private negotia- nicipality should direct its efforts tions between buyer and seller at at the problem properties, rather time of sale. than only focus on point of sale inspections. For more information, call Bill Gerst at the Association, This can be accomplished by 9$8 -3141. general inspection sweeps of June 1998 - _ _ fRcviscdl'_ MPL"S. RERL l UKS HSSU(:. I EL ' No. Uct 15,98 10:28 N0.004 P.02 r ® BUYERS ROME O INSPECTIONS OCTOBER 1998 MINNEAPOLIS AREA ASSOCIATION OF REALTORS A growing number of buyers are hiring a private home inspector to conduct a thorough inspection of the property as part of the purchase process. This trend has developed over the past three to five years due in part to the fact that an increasing number of buyers have real estate agents representing them in the home purchase process. The buyer's inspection provides buyers with an inspection report detailing the condition of the property. A home buyer's inspection takes approximately 3 hours to complete and oftentimes the prospective homebuyer accompanies the inspector through the property. These buyer initiated home inspections are more thorough than any time of sale home inspection programs mandated by city governments. The Minneapolis Area Association of REALTORS (MAAR) has surveyed its members to determine what percentage of buyers hire a private home inspector as part of the home buying process. The survey was conducted by asking the Board of Directors and Legislative/Political Committee members, publishing an article and response form in our newsletter, and asking brokers and office managers to conduct a survey in their offices, MAAR did not ask members to tell us the number of sales involving buyci`s inspections, only the percentage of home buyers who hired a private inspector. Using percentages rather than total sales makes it difficult to make direct comparisons. However, MAAR collected percentages rather than total sales to protect the individual office and agent sales figures. The following charts indicate the location of the office, not the name of the firm. Keep in mind that just because an office is located in a particular community, it does not necessarily follow that the majority of that office's sales occurred in that same cuila #y. OFFICE SALES - BUYER'S INSPECI'XON REPORTS LOCATION NUMBER OF AGENTS PERCENTAGE OF SALES 1. South Minneapolis 12 75% 2. Edina 22 95 -98% 3. Plymouth 77 65% 4. Eden Prairie 37 68% 5. Prior Lake 29 53% 6. Brooklyn Center 49 80 -85% 7. North Minneapolis 7 50% S. Brooklyn Center 25 45% 9. Minneapolis 3 97% 10. Wayzata 40 71% MPLS RERLTORS RSSOC. TE L No. Oct 15,98 10:28 No.004 P.03 M Page 2 INDIVIDUAL AGENTS - BUYER'S 1NSPEC;1'10N REPORTS AGENT OFFICE LOCATION PERCENTAGE OF SALES 1. North M 100% inneapolis 70% 2. St. Louis Park 75% 3, Edina 99% 4, Edina 90% S. Edina 98% 6. Plymouth 95% 7. Minneapolis 80-90% S. Wayzata 67% 9. Wayzata 70% 10. Edina 95% 11. Minneapolis 77% 12. Edina 83 °/9 13. Roseville 60% 14. Brooklyn Center 100% • 15. Bloomington 86% 16. Bloomington 90% 17. Wayzata 800/0 18. Wayzata ° 91 /o 19. Wayzata 100% 20. Wayzata 67% 21. Edina 1000/0 22. Minnetonka 50% 23. Maple Grove 85% 24. Plymouth 100% 25. Wayzata 100% 26, Edina. 90% 27. Edina 50% 28. Wayzata 90% 29. Edina Buyers also rely on the Seller's Property Disclosure Statement, a widely used form in residential real estate in which the seller discloses to the best of his/her knowledge the listed and time it is lis again at the time a purchase agreement g tt the the property a h condition p P rh' . is signed. The Buyer inspection Report and the Seller's Property Disclosure Statement provide buyers with a significant amount of disclosure concerning the condition of the property at r the time of purchase. Mt'L5 KtHL I UKJ HJJUL I tL NO. Uc2 iU ; 1�i NO .UU4 N -U4 Page 3 This report includes responses from 301 association members out of total membership (brokers and salespeople) of 4,578, a 7% response rate. Bill Gerst Chief Operating Officer • M /11,4y 11 /998 Csallc,1 M,wr}•a North. The subdivision would create four new lots for development and one lot which would contain an existing single family home. The preliminary plat shows the extension of Indiana Avenue to link to June Avenue. All of the proposed lots meet the minimu requirements for single family m residential lots. Two lots will front on the new roadway connecting June and Indiana Avenues; the other two lots will front on Halifax Avenue. The Planning Commission recommended approval of the preliminary plat at its April 30, 1998, meeting. Councilmember Carmody noted in the City Engineer's report there was mention of a portion of the roadway being in the flood plain. ivir. Warren responded that a slight portion would be in the 100 year high water level. It was allowable and not uncommon to have a roadway in a flood plain. Councilmember Hilstrom raised the issue of notification to the property owners of the dead -end street converting to a through street. Mr. Warren responded the requirement is to publish the public hearing notice in the local newspaper; however, there is no requirement to individually notify surrounding property owners. There was a motion by Councilmember Carmody and seconded by Councilmember Lasman to - There Planning Commission Application No. 98007 submitted by Accessible Homes, Inc. (Doug - Peterson) requesting preliminary plat approval subject to the following conditions recommended by the Planning Commission: . 1. The final plat is subject to review and approval by the City Weer. t 1 The final plat is subject to the provisions of Chapter 15 of the City Ordinances. 3. Appropriate drainage and utility easements shall be provided around the proposed Lot 1, Block 2 in a manner acceptable to the City Engineer, and the required easements on the other lots be verified, prior to final plat approval. 4. This preliminary plat is subject to the review and approval of the Shingle Creek Watershed Commission prior to final plat approval by the City. 5. The applicant shall enter into a subdivision agreement related to design and construction of infrastructure improvements, the proposed vacation of right of way, and utility hookups prior to final plat apprdl al. The motion passed unanimously. 9. COUNCIL CONSIDERATION ITEMS 9a. AN ORDINANCE AMENDING CHAPTER 12 OF THE CITY ORDINANCES IMPLEMENTING A TIME OF SALE HOUSING INSPECTION, REQUIRING AV INSPECTION, DISCLOSURE OF CONSUMER 5/11/98 -5- LNFORlYIATION CONCERNING THE CONDITION OF A DWELLING _V4 PRIOR TO ITS SALE, AND CORRECTION OF CERTAIN HAZARDOUS CONDITIONS �J rred to the Council by City Manager McCauley explained the ordinance was recommended and refe the Housing Commission. The purpose of the ordinance is to provide for an inspection of a home pected by a licensed, qualified for hazardous conditions prior to sale. it would be ins inspector. ld im hazardous conditions would have to be corrected before the closing. The ordinance City staff in the event a permit is needed for correction of the hazardous condition. CounciLmemb er Hilstr om asked who will oversee the program, how much staff time would be involved, and if the current staff level sufficient. Mr. McCauley responded the Building Official will oversee the program; the amount of staff time is ffi difficult to estimate; and current staff levels should be sufficient, with possible addition of part - time clerical support. aired the concerns she has receiv Mayor K�a�a ess explained ed from residents relate to the cost of the . n P initial inspection, especially from senior adults. "If due to hardship the Discussion ensued regarding the language on pa °e 5, letter `.d„ elect ho immediate hazards owner cannot undertake corrective action, the b ma identified in the evaluator's report." Councilmember Hillstrom said she would lik even if there short of the Ordinance allow for the buyer and seller to negotiate correction of repair QuaQe was a hardship. Councilmember Carmody explained that one reason to include this lan because there is a high number of first -tune home buyers in Brooklyn Center and it should be the seller's responsibility. There was discussion regarding how the City would be notified of co uty e e opment involvement was limited only to those hazards which require a permit. C ommunity Specialist Tom Bublitz explained the inspection certificate would rem need t the v pbction don by at in order for the property to be sold. In the case of the non -perms , the private inspector; permit items would require the City inspector to approve. meeting Councilmember Carmody requested that a slide show bb presented at the next Council which depicts what types of hazards exist. There was further discussion regarding the issue of completide th a buyer rand se ller can negotiate the City would be notified and amending language to prove who will make the repairs, while at the same time making the seller responsible. City Manager McCauley explained the premise of the proposed ordinance is to b owner, thy st ate • — community for compliance with the Ordinance. With regard to houses fors e y � 5/11/98 -6 still subject to the requirements of the Ordinance. Residents would need to be educated of the requirements of the Ordinance through public notice such as the City newsletter. It was Council consensus to direct staff, to dram new language addressing the issues of the removal of the hardship requirement, completion date requirement, and to address the issue of compliance in the event the house doesn't sell. A motion by Councilmember Carmody and seconded by Councilmember Hilstrom to table an ordinance amending Chapter 12 of the City Ordinances implementing a time of sale housing inspection, requiring an inspection, disclosure of consumer information concerning the condition of a dwelling prior to its sale, and correction of certain hazardous conditions passed unanimously. 9b. RESOLUTION GIVING PRELLN INARY APPROVAL TO A SENIOR HOUSING PROJECT ON BEHALF OF BOCA LLyIITED PARTNERSHIP, AUTHORIZING APPLICATION FOR ALLOCATION OF ISSUANCE AUTHORITY AND CALLING PUBLIC HEARS G ^ City Manager McCauley explained that this is a request from Boca Limited Partnership for the issuance of $7.2 million in housing revenue bonds in connection with the acquisition and rehabilitation of Shingle Creek Tower and tax credits in the amount of 5750,000. The bonds would not be obligations of the City. Owners of property built with Federal_ assistance are now able to pay off mortgages early and remove the cyr ent income 1Ln Cations as to he residents and the rent limitations and ao market rate with rents. There is a program which provides for st vouchers to make up the difference between the proposed rents and current rents. Community Development has been approached by other persons looking at development with a similax view of these type of financing mechanisms. The housung bonds would increase the property value. The request is for preliminary approval and calling public hearing. It was noted there were several residents of Shingle Creek Tower in the audience. Mayor Kragness said she received letters from the residents with concerns relating to the rent increases and their ability to afford the increased rents. Mayor Kragness opened the meeting to public comment. Nevin Hench, resident of Shingle Creek Tower, expresse� his concern that the rents ar tuxent borderline affordable and even a small *increase in rent would. be a hardship. He bell building was fine. Paul Lane, resident of Shingle Creek Tower, said Mr. Boisclair held a meeting last week and had presented a list of proposed improvements. It was noted Mr. Boisclair was not present at the meeting. Mr. McCauley said Mr. Boisclair was notified of the meeting. 5/11/98 -7- i IVA}tJ 2.ts lggg C,0c1.vC1 * 1 �NA`ZeJ At this point the agenda was renumbered, and this item was deferred to be discussed as item no. 9h. City � McCauley Manager McCaule explained this resolution authorizes the City to purchase the property for P the Earle Brown Heritage Center parking lot. Since the purchase agreement was not available, it was recommended this item be tabled to the next Council meeting. A motion by Councilmember Carmody and seconded by Councilmember Lasman to table a Resolution Authorizing Acquisition of Property for Earle Brown Heritage Center Parking Lot passed unanimously. 9b. AN ORDINANCE ANTENDING CHAPTER 12 OF THE CITY ORDINANCES IMPLENIENTING A TIME OF SALE HOUSING INSPECTION, REQUIRING AN INSPECTION, DISCLOSURE OF CONSUMER INFORMATION CONCER'ING THE CONDITION OF A DWELLING PRIOR TO ITS SALE, AND CORRECTION OF CERTAIN HAZARDOUS CONDITIONS ,At this point the agenda was renumbered, and this item was deferred to be discussed as item no. 91. City Manager McCauley referred to an alternate ordinance amendment which Staff drafted incorporating language changes recom, mended by the Council at its last meeting. Mr. McCauley reviewed the types of hazards that would be recorded in the report as at or safety hazards. He included electrical wiring, grounding, outside plumbing, floor drain cieanout plug, leaky roofs, furnaces, water heaters, smoke detectors and any other items that create a life safety condition. Councilmember Lasman raised a concern tivith the language in Section 12 - 1511, stating she doesn't support it as it may not do what is intended. Council Members discussed the alternate language as it relates to the 11-itent of the ordinance and also the need to move the ordinance along. Councilmember Hilstrom stated that the ordinance needs to be written to address correcting hazards identified during inspections whether or not the house sells after being inspected. Mr. McCauley recommended the Council approve first reading of the alternate ordinance as written, which includes more restrictive language. At the second reading, if the Council wishes, the ordinance can be revised to be less restrictive; however, it cannot be modified to be more restrictive without setting an additional public hearing. Councilmember Hilstrom inquired if there would be a staff requirement to add this ordinance provision. She does not want to create more staff time, but there does need to be a reason for residents to comply with the ordinance. 5/26/98 -10- City Manager McCauley responded that the premise-of the ordinance is outside of City staff, and the City would rely on the Realtors to make the requirement known to the sellers. The City would be corrections re uirinQ permits for compliance. involved only on the orr � p .. Y q A motion by Councilmember Peppe and seconded by Councilmember Lasman to approve first reading of the ALTERNATE Ordinance Amending Chapter 12 of the City Ordinances Implementing a Time of Sale Housing Inspection, Requiring Inspection, Disclosure of Consumer Information Concerning the Condition of a Dwelling Prior to its Sale, and Correction of Certain Hazardous Conditions passed unanimously. The second reading and public hearing will be scheduled for June 22, 1998. 9h. SPEAKER CARRUTHERS, SENATOR SCHEID, AND REPRESENTATIVE CARLSON is1 ative u pdate , stating it was an excellent experience working Speaker Phil Carruthers P provided a 1e p the P City. He reviewed the approved legislation as follows: 1. Equity funding for K -12 education, which provides State Aid increases to the four school districts in Brooklyn Center. 2. Brookdale taxing bill, which provides financing options to allow the City to assist with financing for the redevelopment of Brookdale without increasing the property • owner taxes. I 3. Legislation to keep affordable housing, new Class 4D reduced Class and its effect, aid program for sustaining loss capacity, loss made up by the State of Minnesota. 4. federally assisted housing, funds made available to preserve the availability of affordable housing. 5. "This Old Apartment," in which landlords who make significant improvements to their apartments (over 52,500), the improvement will not accrue against the apartment building. 6. After school enrichment program funding for at -risk youth. 7. 52.5 million grant for Earle Brown Heritage Center and the sales tax exemption. Senator Linda Scheid expressed her appreciation for the work of the Mayor City Staff, and citizens who provided support at the legislature. Planning and communicating is the key to Bettina results. nni She encouraged the continuance of the open communication. Representative Lyndon Carlson reported that it was a good year at the legislature, a real victory. He- 5/26/98 2 2) The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. 7. PUBLIC HEARINGS 7a. AN ORDINANCE ATN ENDING CHAPTER 12 OF THE CITY ORDINANCES INIP=E TENTING A TIDE OF SALE HOUSING INSPECTION, REQUIRING AN INSPECTION, DISCLOSURE OF CONSU - NIER INFORMATION CONCERNING THE CONDITION OF A DWELLING PRIOR TO ITS SALE AND CORRECTION OF CERTAIN HAZARDOUS CONDITIONS Mr. McCauley outlined the history of the ordinance that was proposed by the Housing Commission. He noted changes in the Ordinance that were made at Council direction which would cause immediate hazards to be reported to the City, regardless of whether a sale occurred. A second alternate was included in the Council packet that would better reflect the Council's request that the Ordinance allow more readily for buyers and sellers to enter into agreement that 'the buyer would correct hazardous conditions. The second alternate removed the requirement that the City consent to such agreements between buyers and sellers. Mr. McCauley introduced Building Official Dave Fisher to present a slide show of common • items found in residential inspections. Mr. Fisher showed the slide presentation while discussing some of the safety hazards. He also explained to the Council some of the comment and below standard items. A motion was made by Councilmember Hilstrom and seconded by Councilmember Carmody to open the Public Hearing. Motion passed unanimously. Donna Zieska, 5455 Brooklyn Boulevard, appeared before the Council to address her concerns about the Ordinance. Ms. Zieska stated that she is not against the inspections, but is against the Ordinance. She thought Brooklyn Center residents should be more aware of this Ordinance, and that buyers do need to be protected, but also need to be responsible when purchasing a home. She feels that this Ordinance is against her Right of Privacy. Bill Gerst from the Minneapolis Area Realtors Association (N ARA) also appeared before the Council to address two things, one being the change in the MA.RA's position as a result of the proposed change in Minneapolis' Ordinance, and two, the fact that buyers are having their own inspections. 6/22/98 -5- Mr. Gerst explained that the MARA's position has changed because of the fact that more and r:- more buyers are hiring independent inspectors, and that the inspections are far more thorough. Mr. Gerst did not have statistical information yet as the percentage of buyer inspections for the Council and assured the Council that he will check into this further and report back to the Council. A motion by Councilmember Hilstrom and seconded by Councilmember Carmody to close the Public Hearing at 7:55 p.m. Motion passed unanimously. Discussion continued and Councilmember Peppe expressed that he was not comfortable with passing this Ordinance and that this item should be tabled. Mayor Kragness suggested that it be tabled until the statistical information from the Minneapolis Area Realtors Association is received and brought back to the Housing Commission. Once the Housing Commission has the information they will report back to the Council. Councilmember Hilstrom requested information on the rights that buyers currently have for correcting problems after purchasing a house. A motion by Councilmember Lasman to refer this Ordinance back to the Housing Commission and report back to the Council when statistical information is available, seconded by Councilmember Peppe. Councilmember Carmody stated that she felt the Council had had ample • opportunity to have their concerns addressed and should not wait any longer to decide this matter. Upon vote being taken on the foregoing motion, the following voted in favor thereof: Myrna Kragness, Debra Hilstrom, Kay Lasman, and Robert Peppe, and the following voted against: Kathleen Carmody. The motion passed. 7b. AN ORDINANCE AINTENDING CHAPTER 23 OF THE BROOKLYN CENTER CODE OF ORDINANCES, RELATING TO THE REGULATION OF PAWNSHOPS AND SECONDHAND GOODS DEALERS A motion by Councilmember Hilstrom and seconded by Councilmember Carmody to open the Public Hearing. Motion passed unanimously. Attorney Tom Johnson from Gray, Plant, and Mooty representing Grow Biz International (GBI) addressed the Council. Mr. Johnson expressed that GBI h�d concerns regarding the proposed chan because the changes will burden the secondhand dealers, and will not be effective in reaching law enforcement goals. Mr. Johnson discussed the different types of businesses such as Play It Again Sports, and Once Upon A Child. He brought to the Council's attention that these types of business' sales will be affected if the Ordinance is changed. He reported that a number of items brought to secondhand stores had a minimal amount of items that were reported as stolen property. 6/22/98 -6- Mayor Kra ess recommended confirmation of her appointment of Councilmembers Carmody and Y � Lasman, Financial Commission Members Escher, Hruska, Blarney, and herself. A motion by Councilmember Carmody, seconded by Councilmember Lasman to approve the review r a ess Councilmember Carmody, Lasman, Financial Commission panel of Mayor Kr Y� Chair Donn Escher, Financial Commission Member Hruska, and Financial Commission Member Blarney to review Financial Advisory Services firm proposals. Motion passed unanimously. 8k. APPOINTMENT OF ATTORNEY FOR SPECIAL PERSONNEL NATTER Mr. McCauley discussed that he is requesting confirmation of retaining Bruce Peterson of the Hinshaw and Culbertson Law Firm. Mr. Peterson would serve as legal counsel to review the transcript and coordinate investigation of the matters identified in the transcript with the John Barlow matter. Mr. McCauley discussed the reasoning for an outside counsel would be that the City's Attorney also represents Brooklyn Park and that the City will be seeking information that has not been released to the ,City of Brooklyn Park regarding other complaints. A motion by Councilmember Carmody, seconded by Councilmember Lasman to approve Mr. Peterson. Motion passed unanimously. DISCUSSION ON TUNE 22, 1998 MINUTES At the June 22, 1998 Council meeting, item 7a on the agenda regarding the Ordinance of Implementing a Time of Sale was discussed. Councilmember Carmody stated that she felt the third paragraph on page six of the June 22, 1998 minutes needed to be changed to indicate that the item was tabled until the Minneapolis Area Realtors Association had gotten statistical information to the Housing Commission and that once this information was received the Housing Commission could review the information to see if it affects the decision they have made. The Council then discussed further some of the issues that were previously discussed and wanted to make sure the Housing Commission specifies what will happen if residents have an inspection and do not sell their homes. Councilmember Hilstrom stated that Councilmember Lasman summarized the items to be hazardous at the previous meeting on June 22, 1998. Councilmember Carmody thought those should be noted so that the Housing Commission is aware of them and that they should be included with the minutes, or this discussion. Councilmemb� Lasman stated that the language needs to be redefined to clarify what will happen after an inspection is done. Councilmember Carmody questioned when this item will be brought back to the Council and suggested three months was plenty of time to make a decision one way or another. Councilmember Hilstrom questioned when the Housing Commission meets to make sure that time would be appropriate. Staff advised the Housing Commission was meeting during the summer months. It was the consensus of the Council that this item be brought back to the Council after three Housing 7/13/98 -14- Commission meetings and that a decision is made at that time. Councilmember Lasman questioned if the Minneapolis Area Realtors Association would be notified of the time given. Mr. McCauley responded that if a motion is made, the City would communicate to the Minneapolis Area Realtors Association. A motion by Councilmember Lasman, seconded by Peppe to table the minutes of June 22, 1998 until July 27, 1998, and that the Council make a decision on this item after three Housing Commission meetings. Motion passed unanimously. 9. ADJOU V4 - TNMNT A motion by Councilmember Hilstrom, seconded by Councilmember Lasman to adjourn the meeting. at 8:02 p.m. Motion passed unanimously. City Clerk ayor • 7/13/98 -15- MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION OCTOBER 20, 1998 CONFERENCE ROOM B BROOKLYN CENTER CITY HALL CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Robert Torres at 7:00 p.m. ROLL CALL Chairperson Robert Torres, Commissioners James Lano, Lloyd Deuel, Ernie Erickson, Michael VonDeLinde, Mark Yelich, and Donald Arm. Also present were Council Liaison Bob Peppe, Mayor Myrna Kragness and Community Development Specialist Tom Bublitz. Commissioner Christopher Russell was absent from the meeting. APPROVAL OF AGENDA There was a motion by Commissioner Erickson and seconded by Commissioner Arm to • approve the agenda as submitted. The motion passed. APPROVAL OF MINUTES - July 21, 1998 and August 18, 1998 There was a motion by Commissioner Erickson and seconded by Commissioner Arm to approve the minutes of the July 21, 1998 and August 18, 1998 Housing Commission meeting as submitted. The motion passed. TIME OF SALE ORDINANCE Commissioner Erickson stated that, as he committed to at the last meeting, he followed up with Council members to determine their positions on the Time of Sale ordinance. He then proceeded to review his discussions with Council members. Commissioner Erickson stated he discussed the Time of Sale ordinance with Councilmember Lasman and she indicated that she believes it is a good concept but needs some fine tuning so no one is in danger of being convicted of a misdemeanor if they are unable to correct certain hazardous items. She noted that there may need to be a redefinition of hazards and cited the example of smoke detectors being required in every bedroom and that this may not be necessary if there is only a single person living in the house. She added that some hazards are less hazardous than others. • 10 -20 -98 -1- Commissioner Erickson relayed his conversation with Councilmember Hilstrom who indicated that if si costs will be necessary to fund the administration of the Time of Sale ordinance there would need to be a budget cut somewhere else in the budget. He added that in his conversation with Councilmember Hilstrom she indicated she had received comments from residents about code enforcement officers looking in people's backyards and that this was a concern for some individuals. Commissioner Erickson commented he believes if code enforcement officers see a good appearing house from the front there will likely not be a reason to enter the backyard but if there is a troublesome appearance in the front yard there may be reason to investigate in the backyard of residences. Councilmember Bob e P e arrived ed at 7.10 p.m. Commissioner Erickson stated, in discussing the Time of Sale ordinance with Councilmember Carmody, she supports the point of sale ordinance in its present form and suggested the Housing Commission members should attend the City Council meeting where the Time of Sale ordinance will be considered. Mayor Kragness stated she is supportive of the concept of upgrading the housing stock but questioned whether the City might be mandating something they do not need. She stated that she would like the realtors association to present their information on buyer inspections. Chairperson Robert Torres recognized Mr. Bill Gerst representing the Minneapolis Area Association of Realtors. Mr. Gerst stated that when the City of Minneapolis was conducting ® hearings on their Time of Sale ordinance many real estate agents in Minneapolis testified that there were a growing number of buyer inspections. During the Minneapolis hearing process, there were no hard data available to prove that buyer inspections were on the increase. Mr. Gerst indicated he has attempted to get objective data from realtors and agencies regarding their experience with buyer inspections. He added that in his survey he asked individual agents to respond on their own sales and also requested an agency response with regard to overall buyer inspections in a particular agency. He explained his response was received in the form of percentages of sales that included a buyer inspection. He added that he had information on percentages of inspections done in offices and also from agents. He explained this survey included data from January 1, 1997 through June 1998. He further explained that information was given in the form of percentages of inspections as opposed to the total number of sales for proprietary reasons. He added that a Growing number of offices and agents have recorded a significant increase in buyer inspections over the last two to three years. Mr. Gerst presented his report summary to the Housing Commission which indicated a significant number of buyer inspections being done from both individual agents and from agencies. Commissioner Arm inquired whether cities that have Time of Sale ordinances allow for a waiver of ordinance requirements if the buyer does an inspection. Commissioner Erickson commented that if a buyer does the inspection it is unlikely that they would share it with anyone else and that the ordinance requires that an inspection be done at the time the house goes on the market. 10 -20 -98 -2- Commissioner Erickson commented that this past real estate season in Brooklyn Center, and other cities, has been very hot and that offers are often made above the asking price and two to three offers may be made on a single home. He inquired of Mr. Gerst, if there is a situation where two families ut in a bid at the same rice and one is contingent on a buyer having an inspection done and the other is non - contingent which is likely to be accepted. Mr. Gerst responded that, everything else being equal, the seller would certainly take the offer without the contingency. Mayor Kragness stated she had sold her mothers' home in Brooklyn Park recently and bought a policy to cover appliances functioning after the sale. She asked Mr. Gerst how often this is used. Mr. Gerst stated that this is a fairly new program and that Edina Realty has been the main agency offering this program. Commissioner Erickson referred Commission members to the memorandum from the City Attorney and pointed out that the memo addressed some important points and noted that a secondary goal of Time of Sale inspection programs is to provide good turnover housing to first time buyers. He commented that realtors use a disclosure statement signed by the seller but this is not required by law and that additional arbitration is being used in certain transactions and that binding arbitration is a way of dealing with house problems. Commissioner Arm commented that some items in a home are obvious, such as outlets needing ground fault interrupters and rooms needing smoke detectors, but he stated he believes the average homeowner does not have any idea that they may have a cracked heat exchanger, for • example. Commissioner Erickson inquired of Commissioner members whether or not there are certain items im Section 12 -1508 of the ordinance that could be eliminated as hazardous items. Commissioner Arm stated that he does not see anything that the Commission could eliminate in the list of hazardous items in the current proposed ordinance. Mayor Kragness commented that paragraph number 4 in section 12 -1508, regarding an agreement that the buyer may execute to provide that they correct hazardous items, was extensively discussed by the City Council. Chairperson Torres recognized Ms. Donna Zieska, a resident present in the audience. Ms. Zieska commented that the insurance Mayor Kragness referred to earlier, for appliances, is quite expensive and that sometimes it is a situation where someone new buying a home uses the house, including the appliances, in a different manner causing problems to occur. She stated she believes insurance that would last a year is not a good idea since the new buyers could abuse the appliances during that year. She also commented she is wrestling with the cost of an inspection which would be approximately $300. Commissioner Erickson pointed out that a $300 inspection would be one that would be initiated 10 -20 -98 -3- by the buyer and that a Time of Sale ordinance, under the requirements of the proposed ordinance, would not be that expensive. • Commissioner Lano commented that he had a buyers inspection done on a house he bought in Brooklyn Center and the inspection took approximately four hours and cost $250. Ms. Zieska stated that if the City has required inspections the costs for such an inspection should be a minimum. She added that if residents have to get their properties up to code before they sell it this is going to be a great burden and problem. She added that many people buy older homes with known problems and then fix them up. She suggested that there be some tax break for repairs required under a Time of Sale ordinance. She added that this would be an incentive for a buyer and that the incentive program would be better than sellers giving a quick fix to home repairs under a Time of Sale ordinance. Commissioner Erickson commented that he does not think the City could implement a program of tax breaks at the local level. Commission members discussed the issue of administrative time required to administer a Time of Sale ordinance. The Community Development Specialist noted that this year has been a particularly busy year for the inspection staff and that next year, with the approach of the Brookdale remodeling, will be an equally if not busier year. He stated that there is a concern that the inspection staff may be stretched with a Time of Sale ordinance. ® Mr. Bill Gerst stated that if the City believes they will not have enough staff to administer a Time of Sale Ordinance he thinks that his report shows an - increasing reliance on private inspections from buyers. He also states he believes the real estate market has gone beyond the need for cities to enact ordinances such as Time of Sale type ordinances. Mr. Gerst stated that if the City does pass a Time of Sale ordinance he would request that two areas in the ordinance be clarified. Number one, he stated that he does not understand section 12 -1511 IMMEDIATE HAZARDS and specifically paragraph B of this section. He stated that this entire section, and particularly paragraph B, needs to be clarified. Number two, he stated that it is unclear in the ordinance whether the seller will have to make repairs within 90 days if the house does not sell. He emphasized this is not clear in the ordinance as proposed. P P P Mayor Kragness inquired whether buyer inspections are still increasing. Mr. Gerst replied that his data shows that they are increasing and that the FHA is now recommending private inspections be done on FHA insured homes. Commissioner Lano stated he has bought two homes in Brooklyn Center and both of the homes had buyer inspections done on them. He stated he believes the City is going halfway in proposing this Time of Sale ordinance and does not think the City can have it both ways. He added he believes that there needs to be staff involvement in such an ordinance to make it i 10 -20 -98 -4- successful. Also, he noted Mr. Bublitz had previously stated that none of the cities that have Time of Sale ordinances can show objective proof that these ordinances have improved the city's overall housing stock. Mayor Kragness inquired whether the City may be mandating something that is already being done by the real estate industry. Commissioner Yelich pointed out that the Commission should be aware of the purpose of the ordinance which is to maintain the overall housing stock in the City and not to protect buyers or sellers. He pointed out that this has been lost in many of the discussions of the Commission. The Community Development Specialist inquired of Mr. Gerst whether an ordinance requiring realtors to provide information on private inspections would be beneficial. Mr. Gerst replied. that he did not think an ordinance r ance like this would ould be workable and cited the example p of the Department of Health requiring that realtors distribute brochures on well abandonment. He noted that this particular approach was not terribly successful. Commissioner Deuel stated that he doesn't know what the typical Brooklyn Center house and that he believes people are buying homes and not fixing them up properly. He stated he believes the Time of Sale ordinance is a start and that he thinks the percentages of buyer inspections would go up if the ordinance is implemented. Commissioner Lano stated that he believes the number of buyer inspections may go down if an ordinance like this is implemented since buyers would assume that the inspection is already being done by the City. Council Liaison Peppe stated he would like to address the current infrastructure improvements that are underway in Brooklyn Center and the subsequent increase in property values related to the current street replacement program. He explained these projects are helping to encourage homeowners to improve their properties. He added that he has looked at the yards of people with new curb and gutter and has noted additional exterior improvements to the homes in many cases. Council Liaison Peppe continued and noted that there are many unanswered questions regarding a Time of Sale ordinance and that his main concern is upgrading the housing stock and that this may be accomplished by proxy by improving infrastructure. Commissioner Erickson stated it was his understanding that the City's street replacement program does not reach beyond a five year plan for specific. areas and that the overall replacement program would take 25 years. Council Liaison Peppe commented that the street replacement program is a multi -year program but that a significant amount has already been done and as the City gets to the Brookdale improvements and other areas there will be a positive change in the community. • 10 -20 -98 -5- Mayor Kragness commented that the schedule for street replacement is somewhat based on the condition of sewers in a particular area and that this is a critical point with regard to scheduling the improvements. Chairperson Torres commented that he had his streets done two years ago at an assessment of $2,500. He pointed out that this assessment cost may take away from housing improvements in some situations. Ms. Donna Zieska stated that she sees some good points and bad points of a Time of Sale ordinance but the overriding bad point is government control. She stated she agrees that hazardous things should be corrected but with the help of real estate people not the government. Chairperson Torres stated that it was his understanding Councilmember Hilstrom's concern is the issue of addressing the correction of hazardous items if a house does not sell. He also noted that one of Councilmember Lasman's concerns is to clarify the language in the ordinance as to what happens after the inspection is done by the initial evaluator. Commissioner Erickson stated that the ordinance before the Commission this evening is the alternative language ordinance which addresses the agreement between seller and buyer to correct the items and he referred Commission members to section 1508 paragraph 4 which, allows the buyer to enter into an agreement with the seller to correct hazardous items. Commissioner Arm questioned whether there should be a time limit on correction of hazardous items by the buyer. Commissioner Erickson responded that the ordinance now says that correction of hazardous items shall be completed with reasonable completion dates no more than 90 days. He added that one thing the ordinance does not have is a subheading on the situation where corrections are required even if the house does not sell. Commissioner Arm stated that the 90 day period addresses corrections done by the buyer but it is not clear on the time limit for corrections to be done by the seller if the house does not sell. Chairperson Torres suggested that language be added to the ordinance which would require the seller to correct the hazardous items within 90 days from the date the items are identified or show some proof of intention to correct the items. Mayor Kragness commented that 90 days may not give enough time for some individuals to obtain financing to do corrections if that is needed. Commissioner Erickson suggested that Chairperson Torres' language be included in the ordinance but that the time period be extended to 180 days. Mr. Bill Gerst of the Minneapolis Area Association of Realtors stated that the Minneapolis ordinance requires that the buyer or seller must complete the hazardous item correction within • 10 -20 -98 -6- 90 days from the date of the disclosure report and that this 90 day period covers corrections done by the seller if the house sells or not and also corrections done by a buyer if the correction is deferred to the buyer. There was a motion by Commissioner Deuel and seconded by Commissioner Erickson to amend the proposed alternate Time of Sale ordinance to include the language from the Minneapolis Truth in Housing oridnance which states that "all required repair /replace items must be completed by the buyer or seller within 90 days of the date of the disclosure report whether or not the property is sold, unless otherwise excepted by this chapter" and to direct staff to clarify section 12 -1511 of the proposed Time of Sale ordinance. The motion passed. Commissioner Erickson stated that the City Council has directed the Housing Commission to return with a decision within three meetings and he added that he believes the Commission has met that goal. There was a motion by Commission Erickson and seconded by Commissioner Arm to forward the ordinance to the City Council as amended by the Commission's previous motion. Voting in favor: Chairperson Torres, Commissioners Deuel, Erickson, VonDeLinde and Arm. Voting against: Commissioners Lano and Yelich. The motion passed. ADJO URNiVENT There was a motion by Commissioner Yelich and seconded by Commissioner Arm to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission ® adjourned at 9:30 p.m. Chairperson • 10 -20 -98 -7- City Council Agenda Item No. 8d i MEMORANDUM DATE: November 18, 1998 TO: Michael I McCauley, City Manager FROM: Scott Brink, City Engineer SUBJECT: Resolution Awarding a Contract for Professional Services, Palmer Lake Basin Water Resources Study There are a number of concerns about drainage issues in the Palmer Lake basin area which require detailed study. As you know, there have been ongoing problems with trail flooding, ballfield settlement, and general drainage concerns. Our Phase I1 Local Water Management Study identified the source of many of the drainage and flooding problems as excessive sedimentation and over vegetation in the marsh area. This study recommended that the City consider a series of capital improvement projects to remove sediment and improve drainage. Several storm sewers drain into the basin and are a source of some of the sedimentation. These also require study to determine potential water treatment options. The 1999 Storm Drainage Utility budget includes $30,000 to hire a consultant to study the basin in great detail, and prepare conceptual designs for specific improvements. We request -that this consultant be retained now so that some initial survey work can be completed before freeze up and snow cover. A staff review committee has solicited proposals from two consultants with extensive water resources experience, Wenck and Associates and WSB and Associates. Both firms have had experience conducting studies of this nature. The proposals of both firms provided the following: • The Consultant's understanding of the City's needs • Work Plan • Company profiles • Similar studies performed by the Consultant • Company personnel • References • Fee Schedule The RFP also asked each consultant to estimate the cost of conducting such a study. WSB estimated it would cost $21,940, and Wenck and Associates estimated $19,499. On this type of professional services contract, compensation is based upon actual hours performed up to a not to exceed amount. Thus, these estimated costs are not "bids," they are estimates of costs based on the consultant's experience with similar studies, and their understanding of the City's needs. Both firms and their respective individuals have proven success in performing these types of studies. Both firms are capable of providing the services needed. The estimate of cost of performing the study is essentially equal. Therefore, in order to provide the best recommendation, staff conducted a thorough review of the proposals, in particular, the Consultant's understanding of the City's needs, and the Consultant's proposed work plan. The review staff consisted of the City Engineer, Director of Public Works, and the Supervisor of Streets/Parks. There were also conversations conducted with members of each firm. -In reviewing the proposals, it was unanimous among staff that WSB provided a more thorough understanding and work/action plan for the study. Key elements of the study and specific measures and tasks under these elements were clearly identified and explained. Key elements are as follows: • Collection of Background Information • Addressing Issues Regarding Hydrologic /Hydraulic Concerns • Addressing Water Quality Related Issues • Maintenance Plans • Funding • The Roles of Different Agencies and Stakeholders • Public Information and Education Wenck and Associates also touched upon Key Elements in their proposal as well. However, the WSB proposal provided greater clarity and detail in explaining how they intended to address these elements, and their familiarity with Palmer Lake and the City's needs also appeared more evident. The principle at WSB who would lead their study team was, while with another firm, a member of the engineering team which prepared the Shingle Creek Watershed Management Plan for the Shingle Creek Watershed Management Commission. Because of this greater level of familiarity and understanding of the larger issues involving Palmer Lake, we feel more confident that WSB can accomplish the work at about the estimated cost than can Wenck. Therefore, staff recommends that authorization be granted to award a contract for services to WSB and Associates, and that the consultant be allowed to proceed with field work immediately. Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION AWARDING A CONTRACT FOR PROFESSIONAL SERVICES, PALMER LAKE BASIN WATER RESOURCES STUDY WHEREAS, drainage, maintenance, and surface water issues relating to Palmer Lake have been identified extensively; and WHEREAS, a comprehensive study of the Palmer Lake basin area is necessary to evaluate short and long term solutions to Palmer Lake related surface water issues and problems; and WHEREAS, $30,000 has been included in the 1999 Storm Drainage Utility budget to provide for said study; and WHEREAS, staff has solicited qualifications and proposals from qualified engineering firms specializing in water resources; and WHEREAS, staff recommends that a contract for professional services be negotiated with the firm WSB and Associates to provide a study to address said issues. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that: 1. The City Manager is hereby authorized and directed to enter into a contract for professional services for a Palmer Lake Basin Water Resources Study with WSB and Associates, and the consultant is authorized to proceed with this study as soon as possible. 2. The cost of this study shall be charged to Professional Services in the Storm Drainage Utility. Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. City Council Agenda Item No. 8e • • 11/17/98 CODE ENFORCEMENT UPDATE: Total Complaints/Inspections to date: 769 Sweep Generated Cases: 447 Pending Cases: 213 Court Pending Cases: 12 Misc.: 97 MONTHL Y COMPLAINTS/INSPECTIONS: JUNE JULY AUG SEPT OCT NOV 97 214 203 219 137 84 ► Q ''1I►r'►�f��.+',t'xr°j'• ;I,.iii l .f► /�. •• P J •► r4 •. �iJ►'� ►iJ:�i fi ►.1 •O� «'i�1•i`�i,�l;�ll , • yid% ����ti�I ���r��� �.,��r��jl \� • i ► i = t s. t1, Ate. � �� ♦ ,- Aso 41 IF WE M ♦ ♦ s• • s NN a�f 7 i o «IOi: ►.•�'.. it I /i/i .•.•.,• •�•'�.•� F► town" 1M it le o m b RI ha• ♦�•<r► , 11 1. I hi►+ ♦S I .��t,Z'�A•�.�.t�a'•i►��^� �i�•.� + ��'�'�� A � -i ce � ►��'4A����.. ,I I► •► � A ♦ ice. ► ��► a y q .+..M.i► � �� �H� ti , n�G��IW.�S j 1r V: � 1►'�1r �► S►�oaY�9f �► � �.+Y•p'c�. <►9'i,Q i riw: _ ��I i �ii►Jiy'e�.•►�ii1�S�lyCO ail +�� +: Q u `��!I,�i. + ?��'i ►i�� � II I! ��� �y��Z�i�� F� �1��r ::�i 1!►! v+Y i �r ►' <► Yr 1► . i �� �1 ►���� ►� Vii` ♦ i ii ( i ` �' _ woo, ! I��� tiCiX .>v • - � r �� 1 >,�1tRIO..� -� �n���� ■ i � �: 2i Vii• iii o a" +a �!�� a. jJ '` �a�W 4�a�i�i ItOt �!i t�►��� %i�;llS•�'i��J�.,�,gl �;v�'0',��r� a`oii�. • I . ,.. + � I \ . j ► `•p�i:%w. t ,- u;• ► dli t ;���' • J�lp ��;a.�sy�'tn�4 ��;•yby�Q�aJQ!•'.��J � ' �I��._.. r�ii� r�'i( 1' ! �e'�� ? <�!GA+$W Izi'`�'e�i►�,c yt,�<t�����'r°''����1 �i•����i' 1 � . •� 1 j�p�i ► ���! ,��► +►►�JJ��J��ifl � I�- ��l�J'I � *�,I,' !• �I +. �► '/ !I► ► r ► z 011 ♦ ■ ♦�J��r i+ 4:40��ii ►`i'� I�ILi� !i� 3►�j�i(i! ►� ►'►O ►��i~ November 18, 1998 Subject: Placement of Refuse Containers It is common practice of the citizens of Brooklyn Center to store refuse containers on the side of their house or garage. Occasionally I receive a complaint from a citizen because a neighbor's container is in view from the front street. When looking into these complaints, I send letters to everyone in the area as everyone keeps containers out next to their home or garage. The container issue has generated an overwhelming amount of complaints from the citizens in favor of keeping their containers next to their home or garage. Citizens state that they have had their containers next to their home or garage for 15, 20 plus years and this is the first time they have been told to move their containers to the rear of the house or place it in the garage. These citizens state they take pride in their property and do not see their container next to their home as a problem. Many citizens have asked if this is a new ordinance and why am I enforcing such an issue when there are more serious issues to handle. Common reasons as to why citizens place their containers next to their home or garage are as follows: No room in the garage for a container or simply not having a garage, container is not easily accessible if kept outside behind the house, the elderly cannot physically move containers far distances, requires shoveling an extra path in the winter. Many citizens have stated that they do not see this as a problem unless people have overflowing garbage that is blowing around the neighborhood. I have only received a few complaints of this nature. For the most part, citizens that have containers out in view have them next to their residence and they are very neat in appearance. The containers have lids and garbage generally is not overflowing. I As an example, during a recent code sweep of a particular neighborhood, I generated 125 letters for code violations. Of the 125 violations, 97 were for container placement only - no other violations were found for those 97 properties. I discovered that containers in almost all instances were next to the house or garage - in view from the front street area. Virtually none of the containers have overflowing garbage and virtually all were neat in appearance with lids. No one had containers strewn about the yard or left at the end of the driveway. Of the 28 remaining letters that were sent, 20 had other violations in addition to container placement. The bottom line,. only 8 residences of the 125 had containers stored from view. The time that is being spent on computer entries, letters and reinspection for container placement only, is taking away valuable time from focusing on more serious issues. This issue is also generating a lot of negative feedback from citizens. I would like to purpose that Section 7 -102 Subdivision 4 be revised. I would like to change the first sentence only to read something as follows: "Containers must be placed behind the front setback of the residence or in the garage." - as opposed to being placed " in the rear of the premises out of view from the street in front of the residence." (See diagram). Virtually everyone places containers in view from the front street area and to date it has been a losing battle trying to get containers moved so they comply with the current container ordinance. The few complaints I have received in favor of the ordinance do not compare with all those in favor of keeping containers next to their home provided they are kept in a sanitary fashion, which most have been. Thank you for your consideration of this proposed ordinance change. Heather Ruzick Neighborhood Liaison e • r l_O'r CON 1 n I I ) FRONT aeS- 13P,GK N G K T '1 v S T R LA to x x x o , r t� �c x FK0NT 5GT - 13 nc- r' -� X H o u-5 E r the carcass of dealing in or handling meat, fowl, fntit, gain, or vege e esultin b r,l from the demolition. r alteration or animals; brick, plaster, wood. metal or other waste matt construction of buildings or structures; accumulated �� ome a sanca but not including r cycl ble ashes. tires, junk, or other such substance which may materials. Subdivision 22. Rubbish is nonputrescible solid wastes such as wood, leaves, trimmin from shrubs, dead trees or b thereof, shavings. sawdust, excelsior, wooden waste, printed matter, paper, paper board, pasteboard, grass, rags, straw, boots, shoes, hats, and all other combustibles not included under the term garbage, but not including recyclable materials. Subdivision 23. Swill includes that particular garbage which is wholly or nearly edible and usable as a food and has food value for animals or fowl, accumulating from animal, vegetable or other matter wasted from clubs, hotels, hospitals, restaurants, and public eatin Subdivision 24. Vehicle is every device in, upon, or by which any person or property is or may be transported or drawn upon a thoroughfare including devices used exclusively upon stationary rails or tracks. Subdivision 2 5. Waste Matter is nonputrescible solid waste such as soil, earth, sand, clay, gravel, loam. stone, brick, plaster, crockery, glass, glassware, ashes, cinders. shells, metal, and other noncombustible material which has been or is to be discarded. but not including recyclable materials. Subdivision 26. Ward Waste has the meaning given it in Nlinnesota Statutes, Section I I 5A.9 1. p STORAGE AND DISPOSAL. Section 7-102. REFU SE S Subdivision 1. Containers Required. The owner of any premises, and any other person having refuse as herein defined, must provide and keep on such premises sufficient containers for the storage of refuse accumulated on the premises between disposal or collection. Each container must be watertight, must have a tight fitting lid. must be impervious to insects, rodents, vermin, and absorption of moisture and may not exceed 30 gahons in size unless otherwise specifically authorized in ATiting b%' the health authority. \ All refuse on any premises must be stored in required containers unless it is immediately consume or isposed of on the premises in an approved incinerator. All commercial, business, industrial, or other such establishments having a refuse volume in ide approved excess of two cubic Wards per week, and all six - family and larger dwellings! must prov ers must be located s bulk or box t- pe refuse storage containers or approved equivalent. The as to be accessible to collection equipment and so as not to require an intermediate transfer. ,_.. ..... i,. udod.ddm II i. Ifi.i .0 lia. Ji Jlu a. i i, ihjaWYYuYY'8% ti�iiL�rruiaisit Subdivision 2. Sanitary Disposal. All refuse must be disposed of in a sanitary manner as approved by the health authority and may not constitute a nuisance. Refuse may not be composted or buried except that composting in an approved rodent and fly proof device and/or filling operations using approved fill materials and methods may be permitted. In no case may garbage be composted or buried. Subdivision 3. Frequency and Manner of Collection. The contents of the containers must be collected once every week, or more frequently if necessary or required by the provisions of any other ordinance of the City by ' a collector licensed under this Chapter. The collector must transfer the contents of the containers to the collection vehicle without spilling them, and if any spilling occurs, the collector must clean it up immediately and completely. Collection must be conducted in a manner as to not create a nuisance. Collection in residential zones must be between the hours of 6:30 a.m. and 8:30 p.m. Upon each collection the containers must be completely emptied and returned to the racks or stands where they are kept, and the lids of the containers must be replaced. Subdivision 4. Placing of Containers. The containers must be placed in the rear of the premises \ �{ or out of view from the street in front of the premises or placed ip a garage located on the premises, except as may be reasonable and immediately necessary for collectionTIn no event may containers be placed or maintained in a way that unreasonably interferes with the use of adjoining property. Containers kept outside must be placed in a manner that does not permit entry of or harborage for animals. insects or other vermin, or permit the container to be tipped over. Containers must be maintained in a reasonable clean condition at all times. Subdivision 5. Defective Containers. If, upon inspection by the health authority, a container is found to be in poor repair, corroded or otherwise defective so as to permit insects, vermin or rodents to enter, or does not meet other requirements of this ordinance, the health authority may require the container to be repaired or replaced by notif�'ing the provider or user of the container of the deficiency and stating a compliance date in the notice. If the deficiency is not corrected by the compliance date, the health authority may condemn the deficient container and affix a taa so stating such condemnation. It is unlawful for any person to place or deposit refuse in a container which has been condemned. Subdivision 6. Preparation of Yard Wastes. Yard wastes must be bagge separately from other garbage, refuse, and waste matter and must be placed 3 to 6 feet from !aarbagee and other refuse on collection day. Section 7 -103. REFUSE 1LAULERS REGULATIONS. Subdivision 1. License Required. No person may haul or convey refuse from any premises in the City, other than the person's own domicile, unless the person holds a valid license. A license is required for each vehicle used to haul or convey refuse. 7 -5 City Council Agenda Item No. 8f i MEMORANDUM DATE: November 19, 1998 TO: Michael J. McCauley, City Manager FROM: Diane Spector, Director of Public Works SUBJECT: 1999 Public Utilities Rate Study Attached for Council consideration is the 1999 Public Utilities Rate Study. This item was discussed at the Council's November 16 work session. The City Council annually reviews public utility rates to determine their adequacy in meeting financial goals and supporting operations and capital projects. In summary, I recommend the Council consider increasing the water, sanitary sewer, and storm drainage rates, with no change to the recycling rate. The recommended rates increase the annual utility bill of the average customer by about 3.8 percent (or $13.58 annually), and of the average senior customer 3.6 percent (or $6.96 annually). • The rates would increase as follows: • Water: from $0.89 per 1,000 gallons to $0.91. Last year, when setting rates for 1998, we had projected that the water rate would have to increase to $0.91 in 1999, so we are right on target. • Sanitary sewer from $45.25 per quarter for a single family residence to $47.50. The senior rate would increase from $24.89 per quarter to $26.13. Last year, we had projected that the residential rate would have to increase to $46.75, so the recommended rate is $0.75 higher than expected. This is because the sanitary sewer portion of the Neighborhood Street and Utility Program is costing more on a continuing basis than anticipated. Smaller than expected interest earnings are also a factor. • Storm drainage: from $9.00 per quarter for a single family residence to $9.50. Last year, we did not make a projection for future rate increases and simply showed continuing at $9.00 indefinitely, as there were still too many unknowns regarding future capital improvements. We now have preliminary capital project estimates for storm drainage improvements not related to neighborhood projects, and it is necessary to begin building fund balance to finance these future improvements. • Recycling: no increase, continue at $6.45 per quarter for a single family residence. • Page 2 Why is the Recommended Rate Increase Greater Than Inflation? While this increase is greater than inflation, it is mainly a result of the need to "catch up" after several instances when there has been no increase. • Water: there was no increase from 1995 to 1996 and from 1997 to 1998. Since 1995 the average rate increase has been about 2.2 percent, which is the same as recommended. • Sanitary sewer: while the 5 percent increase recommended for the sanitary sewer utility seems high, for three years, 1994, 1995, and 1996, there was no increase at all. If the sanitary sewer rates had increased at a uniform rate since 1985, the average rate increase would have been about 2.4 percent. • Storm drainage: the average increase since 1995 in the storm drainage utility has been 5.3 percent; the recommended increase for 1999 is 5.6 percent. What is Driving These Rate Increases? Public utilities are often the target of unfunded mandates. For example, several years ago, the Department of Health enacted a State Water Connection Surcharge to assist the State in paying ® the costs of meeting federal EPA requirements for water testing for lead and copper. In 1999 this is $47,000. In 1999, the water utility will be required to prepare and mail to all users (not connections) of City water a Consumer Confidence Report. For Brooklyn Center, this CCR will state formally what we have said to our customers many times: Brooklyn Center water is safe to drink. We have budgeted $8,000 in printing and postage to prepare and mail this report. A growing and significant force behind the rate increases is the Neighborhood Street and Utility Improvement Program. Substantial capital outlays have been made and will continue from these funds. Our own prioritization policy is the culprit: we have identified as highest priority for improvement those neighborhoods which have the highest combination of needs. Thus, projects completed to date and those in the 5 ar plan all will require substantial improvements in all Y P q three utilities. • Water: about 2/3 of the water utility rate supports operations, while the other 1/3 supports construction projects. Many times, this $0.31 or so per 1000 is insufficient to fully fund capital projects, so the difference is made up from interest earnings and fund balance. For an average residential customer, this $0.31 is about $38.75 per year. • Sanitary sewer: about 20 percent of the sanitary sewer utility rate, averaging about $10.50 per quarter over the next five years, is specific to the Neighborhood Street and p g Utility Improvement Program. Page 3 • Storm drainage: about 50 percent of the storm drainage utility rate, averaging about $5 per quarter over the next five years, is specific to the Neighborhood Street and Utility Improvement Program. For an average residential customer, then, about $100.75 of their average annual utility bill of $371.04 is directly paying for Neighborhood Street and Utility Improvement Program utility improvements. Table 1 Estimated Utility Rate Contribution to Neighborhood Improvements I Average for period 1998 -2003 Water Sanitary Sewer Storm Drainage Rate Per Quarter (or per 1000) (est) $0.95 $50.25 $10.15 Rate per Quarter for Operations $0.64 $38.50 $1.70 Rate Per Quarter for Neighborhood $0.31+ $10.50 $5.00 Improvements Rate Per Quarter for all other capital $0.00 $1.25 $3.45 • Are We Doing All We Can To Keep Rates as Low As Possible? Is There Some Way to Reduce Utility Rates? On the operating side, there is little room for savings. Wages are fixed by union contracts. Overtime when expended is generally the result of equipment failure (such as a water main break) or natural causes (during power outages having to shuttle generators between lift stations to pump down the wells until power is restored) which need to be responded to immediately to protect public health and safety. Utility staff have found the most cost - effective supplies and applications of chemicals and regularly perform preventative maintenance on all components of the utility systems. The installation of energy- saving adjustable speed drives at six wells will reduce electric costs in the long run. Even implementing the Central Garage Internal Service Fund helps by "even -ing out" expenses for equipment. There may be additional small efficiencies yet to be gained, and utility staff are committed to operating the utilities in as cost efficient, safe a manner as possible. On the capital side, there are some options to reduce costs. 1) For the past five years of the Neighborhood Street and Utility Improvement Program, the water and sanitary sewer utilities have paid the entire cost of their respective improvements. The Council could consider starting to assess some of that cost to the property owners in the project areas. The very significant down side to this is that it would be changing policy in mid stream. Page 4 • 2) The Neighborhood Street and Utility Improvement Program could be scaled back, which p b would extend this program even further than the 25 years it is now estimated it will take to complete one improvement cycle. 3) General tax levy funds could be used to subsidize utility rates. If the tax levy is not also increased, this would simply stretch the existing Neighborhood Street and Utility Improvement Program funds even farther, reducing the street mileage which could be reconstructed in one year. As for other capital improvement projects, virtually all which are proposed are necessary to maintain the integrity of the utility systems, and we rely on the public bidding process to ensure that the work is completed at as low a cost as possible. How Do Brooklyn Center's Rates Compare With Other Cities? Brooklyn Center has historically had one of the very lowest water rates in the entire state, in large part because we do not operate a treatment plant. The table below shows the 1999 water rates of various Metro area cities. Table 2 1998 Water Rates of Various Metro Area Cities CITY PER 1000 G CITY 'PER 1000 G 1 Minneapolis $1.79 Brooklyn Park $1.30 New Hope 1.74 Andover 1.21 Golden Valley 1.70 Fridley 1.00 Crystal 1.69 Osseo 1.00 Bloomin; ton 1.55 Plymouth 0.93 Richfield 1.47 Brooklyn Center 0.91 Robbinsdale 1.43 Maple Grove 0.90 The sanitary sewer rate has historically been in the middle range of comparable cities. The table below shows 1999 sanitary sewer rates, converted to quarterly where necessary. i Page 5 Table 3 1998 Quarterly Sanitary Sewer Charges of Various Metro Area Cities [not updated] (Converted to Quarterly Rate Where Necessary) I CITY I PER QUARTER I CITY L PER QUARTER Osseo $79.43 Maple Grove $50.25 Fridley 62.50 Robbinsdale 50.00 Hopkins 62.50 Brooklyn Center 47.50 Plymouth 61.95 Blaine 44.70 I New Hope 59.80 Anoka 42.50 Brooklyn Park 57.40 Bloomington 41.80 Ancjnver 57 to rT77gtal 4(1 RR Finally, Brooklyn Center has one of the highest Storm Drainage Utility rates. Other cities which have similar rates are also in the process of constructing substantial improvements. Cities with lesser rates are not actively constructing improvements, or assess a much larger share of the cost of improvements to the property owners. Table 4 1999 Residential Storm Drainage Utility Rates of Various Metro Area Cities CITY PER CITY PER QUA RTER QUARTER Hopkins 59.60 Roseville $4.38 Bloomington 9.60 Crystal 4.33 Brooklyn Center 9.50 Golden Valley 3.50 Richfield 8.55 Robbinsdale 3.27 New Anna i R(1 Fri Slav 7 RO Summary I believe these rates are fiscally prudent and necessary for the sound management of the utilities. Water Utility Rate Since 1995 • N $1.05 — -- - - -- - -- -- - -- - -- -- - - c ' ° $1.00 o $0.95 - - - - -- - - - - -- - -- - - - - - -- - -- — — o � c = $0.90 � �..-- �, $0.85 • a ar $0.84 - - $0.75 1995 1996 1997 1998 1999 2000 2001 2002 2003 Year Sanitary Sewer Utility Residential Rate Since 1995 $60.00 ----------------------------------- - - - - -- - $50.00 - - - - - -- Cy ---------------------------------- a $40.00 ------------------------ --------------------------- $30.00 o: �? --------------- -------------------------------------- $20.00 w ------------------------------------------------------ $10.00 N -- - ---- -- - - - - -- - - Q: - -- $0.00 2000 2000 2000 2000 2000 2000 2000 2000 2000 Year Storm Drainage Utility Residential Rate Since 1995 $12.00 ----- ------------- --------------------------------------- : $10.00 ------------------------------------ - - - - -- 4 ------ - - - - -- ----------------------- - - - - -- J ------------ -- ---------------- Cy --------- - - - - -- ------ - - -- a� $8.00 ----- - - - - -- - -------------------------------------- a -- -- - - - - - - - - - - - - - - - - - - - c $6.00 � - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ------------ - ---- - ---- --------------------- -------------- w $4.00 -------------------------------------------- _ --- m - - -- -- --------------- --------- - - - - -- ----------------- --------------- ------------------------ N ------ • 1995 1996 1997 1998 1999 2000 2001 2002 2003 Year City of Brooklyn Center 1999 Public Utilities Rate Study The City Council annually reviews public utility rates to ensure their adequacy in meeting financial goals. The Public Works Department strives to meet these goals while keeping rates as affordable as possible. The total utility bill paid by a resident of Brooklyn Center continues to be lower than in most area communities. Water Utility: The schedule labeled Water Utility Rate Study: 1999 shows the projected effect of modest increases in rates for 1999 and subsequent years. With the exception of the periodic painting of water towers and the possible need for a water treatment facility in the future, most capital outlays in the water utility will be main replacements associated with neighborhood street improvements and other Average Residential ! 1998 3999 infrastructure repair. lJtility Customer Charge Charge It is recommended that the Council adopt a rate increase of just over 2 %, or an increase from Recycling X25 80 S25 8D ' $0.89 per 1,000 gallons to $0.91. Water $114.66 5117.24 I Major improvement projects scheduled for 1999 Santar Y sewer 5181.p0 S19D DO include: coating repairs and painting of tower #1, • rehabilitation of the exteriors of well houses #5 & Storm Drainage $38.00 #6 and water main replacement associated with the 1999 neighborhood street reconstruction in the Southeast Neighborhood. Total $357-46 5371.04 Percent Increase 3.8 "� Sanitary Sewer Utility: The table Sanitary Sewer Rate Study: 1999 shows the projected effect of a just under 5 % increase for 1999, followed by more modest increases the next four years. Considerable expenditures have been made from this fund in the past several years. Aside from facility improvements, neighborhood street projects have required substantial sanitary sewer main replacements and repairs, and will continue to do so. In most neighborhood projects, the majority of sewer main has been found to be in need of replacement. Capital improvements for 1999 will include: replacement of two small lift stations, bank stabilization of the Mississippi River interceptor in the area adjacent to 66th Avenue, and replacement of portions of the sanitary sewer lines as a part of the 1999 neighborhood street improvement program in the Southeast Neighborhood. Detailed analysis of future capital needs for all utilities can be found in the Capital Improvements Plan. It is recommended that the Council adopt a rate increase of just under 5 %, or an increase from $45.25 . per quarter (residential rate) to $47.50 per quarter. Storm Drainage Utility: The table Storm Drainage Utility Rate Study: 1999 shows a 5.5 % increase in 1999 rates, with similar increases in the following four years. ® A financial management priority for the storm drainage utility is the accumulation of a minimum cash balance of $500,000. This balance is necessary to provide for Average Senior Utility 1998 X999 adequate cash flow and provide flexibility customer Chargehatge in programming projects. Substantial improvements to the Palmer Lake basin, the Shingle Creek channel, and numerous outfalls as well as construction of Recycling 525.SII 525.8© additional regional detention ponds are Water 529.© 529.00 expected to become a priority over the next several years. These projects have Sanitary Sewer 599 56 5104152 been identified and very preliminary Storm Drainage $36 ;00 538.00 estimates of cost developed, however, they have not yet been prioritized. Total > $19016 5197.32: Capital improvements scheduled for 1999 include: Completion of the Shingle Creek Percept Increase 3.6% Regional Pond in Minneapolis, storm sewer work associated with the neighborhood street reconstruction in the Southeast Neighborhood, and a study of the Palmer Lake area to develop future improvement projects to alleviate storage and drainage concerns. • It is recommended that the Council adopt a rate increase of 5.5 %, or an increase from $9.00 per quarter (residential rate) to $9.50 per quarter. Recycling Utility: The Hennepin Recycling Group (HRG) has adopted their budget for 1999 and it maintains current service levels with no increase in fees for 1999. Rates will remain at $2.15 per month, or $6.45 per quarter. Utility Hook Up Charges Hook up charges are increased annually based on inflation. Charges were increased 1.5 percent, based on the increase in the Consumer Price Index from September, 1997 to August, 1998. Summary: Staff recommends small increases in water, sanitary sewer and storm drainage rates for 1999. If the recommended rates are adopted, the annual utility bill of the average customer would increase by approximately 3.8%. The annual bill of a senior customer would increase by 3.6%. s • BROOKLYN CENTER WATER UTILITY 1999 RATE REVIEW Background The City Council on November 24, 1997 adopted Resolution 97 -208, which established water rates for 1998. The Council annually reviews established rates for their adequacy and makes adjustments as necessary. Water Utility Financial Performance, 1997 and 1998 The water utility's financial performance in 1997 was worse than expected. Operating expenditures were greater than expected, as were capital outlays. Revenue was less than expected. Effective water conservation programs (such as the odd -even sprinkling restrictions) and well -timed rainfalls in summer combined to reduce billable water consumption. The estimated billable water assumption in future years has been reduced to reflect this experience. It is estimated that revenues and operating expenditures in 1998 will be about as projected. Capital outlays will be significantly less than expected, due primarily to very good bids received for the project to repair and recoat Water Tower #3 (Centerbrook). The energy- saving adjustable speed drives (ASDs) at six wells have been installed, and are resulting in energy savings. No adjustment has been made in the budget for 1999 as we gain experience in what the average savings above financing costs would be. It is expected that there will be some savings in the short term, as well as very significant savings once the financing is complete. Capital Outlays The major capital improvement projects planned for 1999 include water main improvements associated with the Southeast neighborhood street improvement program and the repair and recoating of Water Tower #1 (France Avenue). With the exception of periodic painting and coating repairs of water towers and the possible need for a water treatment facility in the future, most capital outlays in the water utility will continue to be main replacements associated with neighborhood street improvements and other minor infrastructure repair. Recommendation Table 1 shows the current and projected financial performance of the water utility. To meet current utility fund needs, it is recommended that the Council for 1999 increase rate the rate from $0.89 per 1000 gallons to $0.91. ® Impact of Recommended Rate Increase Table 2 below illustrates the impact the recommended rate increase would have on the summer water bills of various types of customers. The summer bill is typically the highest bill of the year. Table 2 Impact of Recommended Water Base Rate Increase Summer Water Bills of Various Customers Type of Customer ) 1998 Charge I 1999 Charge RESIDENTIAL Low Use (Minimum) $7.00 $7.00 Average Use (38) 33.82 34.58 High Use (116) 103.24 105.56 Apartment, 36 Units (630) 560.70 573.30 _ ... .... COMMERCIAL • Car Dealership (235) $209.15 $213.85 Heavy Commercial Use (864) 768.96 786.24 Table 3 is a summary of 1999 water rates per 1000 gallons for a number of Metro area cities. Brooklyn Center continues to have one of the lower rates in the area. Table 3 1999 Water Rates of Various Metro Area Cities x x CITY, PER 1000:G CIT ! ( PER 1000' G Minneapolis $1.79 Brooklyn Park 1.30 , New Hope 1.74 Andover 1.21 Golden Valley 1.70 Fridley 1..00 Crystal 1.69 Osseo 1.00 Bloomington 1.55 Plymouth 0.98 Richfield 1.47 Brooklyn Center 0.91 Robbinsdale 1.43 Maple Grove 0.90 0 Other Fees and Charges The water utility rate schedule contains a number of fees and charges in addition to rates for service. The following list describes each fee or charge and its current level. Fees A. 518 " X 314 " Water Meter Property owners are currently charged $50.00 for a water meter when a water account is opened with the City. The City then buys the water meter from the property owner when the water account is closed, and the new owner is then charged for the water meter when the new account is opened. Since most of the water meters in the City are of this size, it is administratively convenient to charge the same fee to all accounts. B. 314 " or Larger Water Meter Property owners requiring meters larger than the standard residential water meter are charged the cost of the meter plus a $2.00 administrative fee. Since there are far fewer of the larger meters, it is not as difficult to administer the buy -back of the water meters. C. Fire Protection Inspection Property owners with fire sprinkler systems are charged an annual fire inspection fee of $50.00 to test the fire sprinkler system. D. Private Fire Hydrant Maintenance Property owners who have privately owned fire hydrants located on their property are billed the cost of labor, materials, equipment and overhead whenever the City performs maintenance of their fire hydrants. Charges A. Delinquent Account Charge The present delinquent account charge is $3.00 or 10 percent of the utility bill, whichever is greater. It applies to the bill as a whole. B. Certification to Taxes • The special assessment service charge for delinquent accounts recovers the cost of certification with the County Auditor of the delinquent amounts to taxes. It is recommended that this fee remain at $30.00, which is consistent with the certification ® fee for diseased tree and weed destruction. C. Restoration of Service - Monday to Friday, Except Holidays, Between the Hours of 7:30 a.m. to 3: 00 p. m. The restoration of service charge during working hours is $25.00, and includes the cost of one hour labor, labor additive, and vehicle rental. It is charged in all instances where a customer's water has been turned off, whether by a customer's request or for non - payment of utility bills. D. Restoration of Service - Anytime Saturdays, Sundays and Holidays and Between the Hours of 3:00 p.m. and 730 a.m. on Monday Through Friday Except Holidays Restoration of service during off hours is much more expensive because Public Utility employees are called back to work for a minimum of two hours at overtime pay. The restoration of service charge is $75.00 during these hours. E. Delinquent Meter Reading The delinquent meter reading charge is designed to motivate water customers into • reading their own meter and forwarding the meter reading card to the City for billing. The current charge is: $2.00 the first and second consecutive time a reading card is not returned. The charge increases to $5.00 the third time, and to $10 the fourth time. After four quarters, the customer must either submit a reading card or schedule a meter reading, or face water shutoff. F. Water Hookup Charge Properties that have never been assessed, or not fully assessed for water are charged a hookup charge when water hookup is requested. The charge is intended to cover the cost of the lateral water main, supply, and trunk capital investment in the water system. It is calculated on a per lot basis for single family residential and on a linear foot plus square foot basis for all other properties. It is established annually by resolution. G. Hydrant Meter Charges The hydrant meter charges are for meters that attach to fire hydrants used as a temporary water connection, usually for construction projects. The City has two sizes of hydrant meters, 5/8" x 3/4" and 2' /z ". The charges for the smaller meter include $100.00 deposit, $1.00 per day rental, $20.00 minimum charge, and the cost of the water used at the prevailing water rate. The charges for the larger meter include $700.00 deposit, $7.00 per day rental or $100.00 per month rental, $35.00 minimum t charge and the cost of water used at the prevailing water rate. II H. Curb Stop Stand Pipe Repair City crews are called in to repair curb stop stand pipes for private properties due to damage or settling. In cases where the curb stop stand pipe is bent or otherwise damaged, a substantial amount of time can be involved in repair. A standard charge of $40.00 is charged for each curb stop stand pipe repair. e: \eng \pubuti1\rates \watrat99 s WATER UTILITY RATE STUDY: 1999 11/18/98 9:09 f.9 .�. 39:9.::: :: :::::::.:: :::::::.: > 30# .............::..:::::.:: # C1. 1::::::::::.:_::.:::::::........:............................. .:....:.:.::::::::::::::::::::: .............................::::.:::::::::::::::::.:::::.::.::::::,:::.::::::::.:::::::::.::::....::..:...::::: ::............:::::::,::::::::. .............. Start of Year Cash &Investments r. a EXPENDITURES Operations Personal Service $341,534 $407,157 $419,372 $431,953 $444,911 $458,259 Contractual Service 146,334 148,897 153,364 157,965 162,704 167,585 Supplies & Materials 108,000 100,700 103,721 106,833 110,038 113,339 Utilities /Insurance 152,595 148,100 152,543 157,119 161,833 166,688 Depreciation 257,000 359,100 370,000 380,000 390,000 400,000 TOTAL EXPENDITURES $1,005,463 $1,163,954 $1,199,000 $1,233,870 $1,269,486 $1,305,870 REVENUES Billing Revenues $1,068,000 $1,092,000 $1,116,000 $1,152,000 $1,188,000 $1,212,000 Miscellaneous Operating 90,000 90,000 90,000 90,000 90,000 90,000 Miscellaneous Non - operating 20,000 20,000 20,000 20,000 20,000 20,000 TOTAL REVENUES $1,178,000 $1,202,000 $1,226,000 $1,262,000 $1,298,000 $1,322,000 , Net Income or Loss ( $172,537 I $38,046 I $27,000 I $28,130 I $28,514 I $16,130 Depreciation Add -Back $257,000 $359,100 $370,000 $380,000 $390,000 $400,000 ,: .... „ ..:: :.........:.:..::..'s3::..... ,.:..:9 X46.: :..:.::.:...37` Qbt�.......::.::.:..$.. 4.. 8....:.:.::::: 41...:...:........ ................ : ::...:,.:::::: A a €dab 0": :::Ca Ital. 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': : � : i ?!:y iiiiii iii: is iii is ;.: ::.' :i ` i;i2 ;i2 ;i ?>... iii[i i [i:i ;'o-`: ii ;`';':? \ ;>:;:j; >;: ",: ° :::: ? :i ":2:i :i: is : i:i: i:i Non Operating Expenditures Capital Outlay $1,205,992 $803,700 $794,185 $647,945 $706,825 $620,180 Non Operating Revenues Interest Earnings $190,696 $148,616 $122,208 $108,460 $101,892 $92,571 Total Net Effect on Fund Balance ($585,759) ($257,938) ($274,976) ($131,355) ($186,419) ($111,479) End of Year Cash & Investments ��� .� ;F For Information :::::.::::.: >:::: >::... t} Rate..er.l AOi> ns ::.....:.......... .......................:.:.:.:: �:::::..:.........:..:.........................................................................:.::::::::::::.::.::........................................................... .....................:::::::::: Px ;>:.> :::::::::::::::::::::::::::::::::::::::.:.::.:..:..:.:.................................................................................. ............................... Number of gallons (in 1000s) 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 adoption: Member introduced the following resolution and moved its RESOLUTION NO. RESOLUTION ADOPTING THE .1.999 WATER UTILITY RATE SCHEDULE WHEREAS, a municipal Public Utilities Division exists for the purpose of providing and maintaining water and sanitary sewer facilities for the citizens of the City of Brooklyn Center; and WHEREAS, it is a requirement of the City Charter that the Public Utilities Division be a self - sustaining entity through revenue provided by a uniform schedule of rates, fees and charges; and WHEREAS, City of Brooklyn Center Ordinances state, "The City Council shall adopt by resolution schedules of water and sanitary sewer rates, fees, and charges which schedules shall be known as the Public Utilities Rate Schedule ". NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that the following Water Utility Rate Schedule be adopted with the current rate maintained effective for all billings issued after January 1, 1999. WATER UTILITY RATE SCHEDULE 1. WATER RATES BASE RATE AMOUNT PER YEAR 1.000 GALLONS 1998 $0.89 1998 Proposed $0.91 QUARTERLY MINIMUM RATE 1998 QUARTERLY 1999 METER SIZE MINIMUM CHARGE CHARGE 5/8" x 3/4" $ 7 Same 3/4" $ 11 1 $ 14 " 1 /z" $18 2" $ 35 3 " $ 70 " 4" $119 " 6" $273 " 8" $515 " O 10" $686 RESOLUTION NO. 2. FEES PRESENT PROPOSED Water Meters 5/8" x 3/4" $50.00 Same 3/4" or larger Cost Plus $2.00 Same Fire Protection $50.00 Same Inspection Private Fire Hydrant Labor, Materials Same Maintenance Equipment and Overhead 3. CHARGES PRESENT PROPOSED Delinquent Account Greater of Quarterly $3.00 or 10% Same • Certification to Taxes Per Account $30.00 Same Restoration of Service Monday to Friday Except Holidays Between the Hours of 7:30 A.M. and 3:00 P.M. $25.00 Same Restoration of Service Anytime Saturday, Sunday and Holidays and Between the Hours of 3:00 P.M. and 7:30 A.M. on Monday Through Friday Except Holidays $75.00 Same Delinquent Meter Reading $2.00 1st & 2nd qtr. Same Per Account $5.00 3rd quarter $10.00 4th quarter (consecutive) Curb Stop Stand Pipe Repair $ 40.00 Same RESOLUTION NO. 3. CHARGES (continued) PRESENT PROPOSED Hydrant Meters 518" x 3/4" Deposit $100.00 Same Daily Rental $ 1.00 Same Minimum Rental $ 20.00 Same 2 1 �2 " Deposit $700.00 Same Daily Rental $ 7.00 Same Monthly Rental $100.00 Same Minimum Rental $ 35.00 Same Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. BROOKLYN CENTER SANITARY SEWER UTILITY 1999 RATE REVIEW Background The City Council on November 24, 1997 adopted Resolution 97 -209, which established sanitary sewer rates for 1998. The Council annually reviews established rates for their adequacy and makes adjustments as necessary. Sanitary Sewer Utility Financial Performance, 1997 and 1998 The sanitary sewer utility's financial performance in 1997 was not as good as expected, largely as a result of higher than anticipated charges from the Metropolitan Council, Environmental Services (MCES). These charges account for approximately 75 % of the expenditures in this utility. This increase was offset by somewhat lower expenditures for the remainder of the utility but performance was lower as revenues came in close to the anticipated. Revenues for 1998 are coming in as expected and should be sufficient to cover operating expenditures. Capital outlays continue to be greater than expected. Sanitary sewer improvements associated with the Neighborhood Street and Utility Program are greater than • expected as root infiltration and main deterioration is more extensive than anticipated. On average, 2/3 to 3/4 of the sewer main in project areas has had to be repaired or replaced. Capital Outlays Capital projects planned for 1999 include total replacement of sanitary sewer mains as a part of the Southeast Neighborhood street improvement project, replacement of the last two canister lift stations, and stabilization of the Mississippi River interceptor where it passes close to the Mississippi River bank at about 66th Avenue. Rate Setting Considerations The most important consideration regarding the sanitary sewer rates is the need for capital improvements. The sanitary sewer fund has financed several major capital improvements in the past few years, as well as significant neighborhood improvements. In addition to ensuring that there is sufficient reserve to finance necessary capital projects, the fund balance must be increased to provide for sufficient emergency and cash flow reserve. Recommendation Table 1 shows the current and projected financial performance of the sanitary sewer utility. ® To meet current and future utility fund needs, it is recommended that the Council for 1999 increase rate the rate from a residential quarterly rate of $45.25 to $47.50. ® Impact of Recommended Rate Increase Table 2 below illustrates the impact the recommended rate increase would have on the summer sanitary sewer bills of various types of customers. The summer bill is typically the highest of the four quarters. Table 2 Impact of Recommended Sanitary Sewer Base Rate Increase Summer Quarterly Utility Bills of Various Customers Type of Customer ( 1998 Charge I 1999 Charge RESIDENTIAL Senior $24.89 $26.13 Residential 45.25 47.50 Apartment, 36 Units 1,140.48 1,197.00 COMMERCIAL ! Car Dealership $423.00 $446.50 Heavy Commercial Use 1,555.20 1,641.60 Table 3 is a summary of 1999 sanitary sewer rates per 1000 gallons for a number of Metro area cities. Brooklyn Center is in about the middle of the range of rates in the area. Table 3 1999 Quarterly Sanitary Sewer Charges of Various Metro Area Cities (Converted to Quarterly Rate Where Necessary) CITY J PER QUARTER CITY I PER QUARTER Osseo $79.43 Maple Grove 50.25 Fridley 62.50 Robbinsdale 50.00 Hopkins 62.50 Brooklyn Center 47.50 Plymouth 61.95 Blaine 44.70 New Hope 59.80 Anoka 42.50 Brooklyn Park 57.40 Bloomington 41.80 Andover 57.10 Cryst 40.88 • Other Fees and Charges The sanitary sewer utility rate schedule contains a number of fees and charges in addition to rates for service. The following list describes each fee or charge and its current level and describes any recommended amendment. Fees The only fee for sanitary sewer service is the SAC (Service Availability Charge) unit charge, which is established by Metropolitan Council, Environmental Services. This fee goes directly to MCES. Charges A. Delinquent Account Charge The resent delinquent account charge i 0 or 10 percent of the utility p q g s$30 p bill. It applies to the bill as a whole. B. Certification to Taxes • The special assessment service charge for delinquent accounts recovers the cost of certification with the County Auditor of the delinquent amounts to taxes. The charge is currently $30 which matches the certification fee for diseased tree and weed destruction accounts. C. Line Cleaning Charge The line cleaning charge recovers the cost of cleaning City sanitary sewer lines due to misuse by the property owner. The most common infraction is grease build up due to improper sewering of restaurant greases. The charge is actual labor, materials, equipment, and overhead. D. Sanitary Sewer Hookup Charge Properties that have never been assessed, or not fully assessed for sanitary sewer, are charged a hookup charge when water hookup is requested. The charge is intended to cover the cost of the lateral sanitary sewer main and is calculated on a linear foot basis. It is established annually by resolution. ® e: \eng \pubuti1\rates \sewrat99 SANITARY SEWER RATE STUDY: 1999 11/18/98 9:09 2€1...:........_ Start of Year Cash & Investments K .I� N � EXPENDITURES Operations Personal Service $222,599 $190,798 $196,522 $202,418 $208,490 $214,745 Contractual Service 120,335 105,910 111,206 116,766 122,604 128,734 Supplies & Materials 20,650 18,500 19,055 19,627 20,215 20,822 Utilities /Insurance 28,025 29,354 30,822 32,363 33,981 35,680 Depreciation 185,000 209,600 215,000 220,000 225,000 230,000 Subtotal: City O &M Expense $576,609 $554,162 $572,604 $591,173 $610,291 $629,981 MCES Charges $1,525,000 $1,555,500 $1,578,833 $1,602,515 $1,626,553 $1,650,951 TOTAL EXPENDITURES $2,101,609 $2,109,662 $2,151,437 $2,193,688 $2,236,843 $2,280,932 REVENUES Billing Revenues $2,283,463 $2,413,902 $2,551,101 $2,625,907 $2,701,461 $2,777,777 Miscellaneous Operating 0 0 0 0 0 0 Miscellaneous Non - operating 1,000 1,000 1,000 1,000 1,000 1,000 TOTAL REVENUES $2,284,463 $2,414,902 $2,552,101 $2,626,907 $2,702,461 $2,778,777 Net Deprecation Add -Back $185,000 ` $209,600 ` $215,000 $220,000 I $225,000 I $230,000 34: .;.:.;::.:<.:.::.;:. >..f43#3::1 66 6►I3........fx6:t4:; AalfIabte :.:aa:.onflEtzutin::.;.;:;::.. .;:.;.:.::.; :::.::.::.:.::.... 6 T ......................... ........ _.:.:::::::.:.:.., :.: :,................................. ............................... : L,........... ......... :.........L........... ._.... Non Operating Expenditures Capital Outlay $681,240 $1,003,270 $585,860 $533,480 $681,825 $745,180 Non Operating Revenues Interest Earnings $67,742 $50,728 $24,231 $26,933 $34,266 $36,419 Total Net Effect on Fund Balance ($245,643) ($437,703) $54,035 $146,672 $43,059 $19,085 End of Year Cash & Investments For Information Residential Accounts µ/ �� y/ � Uald .. .:. :.::..:::.:. i:. i:. i :.::::::::::::: i::; ':::i::i:i::i::::i:::i::i$;:i:: �`y. { , �� , µ yy � }yy�. }yyy::. AF .i :........::::........ ............................... ..: '::.:::i::i::: ::.:.v.:: ii:>•.. .I:Y1!Y.....:.........:........ viF.1C......................... 1!. 1. W.....:.:.:::::::::::::::.................... ............................... Senior Accounts Qu ..x> P. ......::.::.;:.:::.:. 7 ., a ....................... r.....................:....... 45...::.:.:::::::::::::::.................. ............................... RAR : 411,..... ... . . its adoption: Member introduced the following resolution and moved RESOLUTION NO. RESOLUTION ADOPTING THE 1999 SANITARY SEWER UTILITY RATE SCHEDULE WHEREAS, a municipal Public Utilities Division exists for the purpose of providing and maintaining water and sanitary sewer facilities for the citizens of the City of Brooklyn Center; and WHEREAS, it is a requirement of the City Charter that the Public Utilities Division be a self - sustaining entity through revenue provided by a uniform schedule of rates, fees and charges; and WHEREAS, City of Brooklyn Center Ordinances state, "The City Council shall adopt by resolution schedules of water and sanitary sewer rates, fees, and charges which schedules shall be known as the Public Utilities Rate Schedule ". NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that the following Sanitary Sewer Utility Rate Schedule be adopted with the proposed rate effective for all billings issued after January 1, 1999. SANITARY SEWER UTILITY RATE SCHEDULE 1. RATES QUARTERLY RESIDENTIAL RATES SINGLE SENIOR YEAR FAMILY APARTMENT CITIZEN 1998 $45.25 $31.68 $24.89 1999 Proposed $47.50 $33.25 $26.13 NON - RESIDENTIAL RATES PER 1,000 FIXTURE YEAR GALLONS UNITS 1998 $1.80 $2.80 1999 Proposed $1.90 $2.90 • RESOLUTION NO. 2. FEE PRESENT PROPOSED SAC Charge Set by MCES Set by MCES 3. CHARGES PRESENT PROPOSED Delinquent Account Greater of Quarterly $3.00 or 10% Same Certification to Taxes Per Account $30.00 Same Line Clearing Charge Labor, Materials Labor, Materials Equipment and Equipment and Overhead Overhead Sanitary Sewer Hookup Established Established Annually by Annually by Resolution Resolution Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. BROOKLYN CENTER STORM DRAINAGE UTILITY • 1999 RATE REVIEW Background The City Council on November 24, 1997 adopted Resolution 97 -210, which established storm drainage utility rates for 1998. The Council annually reviews established rates for their adequacy and makes adjustments as necessary. The Phase I study of the City's storm drainage system, (Storm Water Management Plan) has been completed. The Phase II study is in draft form, and will be finalized within the next several weeks. This Phase II study has identified a number of improvements outside of neighborhood storm sewer improvements which should be considered. These include substantial improvements to the Palmer Lake Basin; several possible regional stormwater detention and treatment ponds; and miscellaneous other improvements to Shingle Creek and the Mississippi River bank. Storm Drainage Utility Financial Performance, 1997 and 1998 The storm drainage utility's financial performance in 1997 was better than anticipated. S Although operating revenues and expenditures came in about as expected, revenue bonds were sold in 1997 to cover the special assessment portions of previous years' improvement projects, thus improving the fund's cash position. Operating revenues for 1998 are coming in about as expected and should be sufficient to cover expenditures. In addition, the first phase of funds from the $2 million DTED grant for the Shingle Creek Regional Pond will be received in 1998. This will not only reimburse the City for a portion of the cost of the construction project (the City is required to pay at least $500,000 from its own funds, in this case, TIF), but will also reimburse the storm drainage utility for past costs for feasibility studies, wetland delineation, preliminary design, and environmental assessment. A financial management priority for the storm drainage utility is the accumulation of a minimum cash balance of $500,000. This balance is necessary to provide for adequate cash flow and provide flexibility in programming projects. Capital Outlays Capital improvements scheduled for 1999 include: Completion of the Shingle Creek Regional Pond (Minneapolis phase), storm sewer work associated with the Southeast Neighborhood street reconstruction, repair of Mississippi River outfalls, and a Palmer Lake Basin Water Resources Study. • Future capital and operating needs identified in the Phase II Local Water Management Plan will be refined and prioritized. This information will be essential to developing and refining the short and long term financial plan for the utility. It is expected that the Palmer Lake Basin will require extensive rehabilitation work, and the Capital Improvement Program already includes an amount for the first phase of this work. Recommendation For 1999, staff recommends Council adopt the rates shown on the attached spreadsheet. This would result in a rate increase from $36.00 per base acre in 1998 to $38.00 per acre in 1999. The average residential quarterly rate per lot would increase from $9.00 in 1998, to $9.50 in 1999. RECOMMENDED QUARTERLY 1999 STORM DRAINAGE UTILITY RATES Classification/Land Use 1998 I 1999 BASE RATE $36.00 $38.00 1: Cemeteries, Golf Courses 9.00 9.50 2: Parks 18.00 19.00 3: Single Family, Duplex, Townhouse 9.00 /lot 9.50 /lot 4: Schools, Government Buildings 45.00 47.50 5: Multiple Family, Churches 108.00 114.00 6: Commercial and Industrial 180.00 190.00 7: Vacant Land As As Assigned Assigned Table 2 details the 1999 storm drainage charges of area cities for residential properties. • Table 2 1999 RESIDENTIAL STORM DRAINAGE UTILITY RATES CITY QUARTERLY CITY QUARTERLY RATE RATE Hopkins $9.60 Roseville $4.38 Bloomington 9.60 Crystal 4.33 Brooklyn Center 9.50 Golden Valley 3.50 Richfield 8.55 Robbinsdale 3.27 New Hope 4.80 Fridley 2.80 ® Note: Cities on the lower end of the quarterly rate scale typically fund only their watershed district dues, and in some cases some other minor operational costs for the utility. Cities on the upper end are actively constructing storm drainage improvements from the fund. e:\eng\pubufi1\rates\sdurat99 I STORM DRAINAGE UTILITY RATE STUDY: 1999 11/18/98 9:18 Start of Year Cash & Investments1 wo k .. ..... ...._ EXPENDITURES Operations Personal Service $101,000 $100,000 $100,000 $100,000 $100,000 $100,000 Contractual Service 90,787 58,435 60,539 62,718 64,976 67,315 Supplies & Materials 2,961 0 5,000 5,000 5,000 5,000 Utilities /Insurance 2,113 2,200 2,279 2,361 2,446 2,534 Depreciation 83,000 93,500 98,500 103,000 108,000 115,000 TOTAL EXPENDITURES $279,861 $254,135 $266,318 $273,079 $280,422 $289,849 REVENUES Billing Revenues $936,000 $988,000 $1,040,000 $1,092,000 $1,144,000 $1,196,000 Miscellaneous Operating 0 0 0 0 0 0 Miscellaneous Non - operating 20,000 20,000 20,000 20,000 20,000 20,000 TOTAL REVENUES $956,000 $1,008,000 $1,060,000 $1,112,000 $1,164,000 $1,216,000 i Net Income or Loss I $676,139 I $753,865 I $793,682 I $838,921 I $883,578 I $926,151 Depreciation Add -Back I $83,000 $93,500 $98,500 $103,000 $108,000 $115,000 # .. .. .. ` C#. itl! L. 11 .: :::::::::::::.................. .'..:>::::;>;:.»:.:;;:;.;..?::` i..;:.:.:;;::;.;:::.;;.':$.....::::::::.:.'!.................:..... 5 ................_................... ..................�............ .: ::::.:,::::: _ � (} !:2 0 �. gas .....:...: :::.::..a:'�9� �€ �0�::aa�..::::......:::...............:............ ............................... Non Operating Expenditures Capital Outlay $317,211 $502,945 $752,185 $622,645 $945,604 $575,280 Debt Service $242,190 $238,957 $240,510 $241,350 $241,500 $240,940 Non Operating Revenues Interest Earnings $8,314 $17,961 $24,132 $20,313 $25,225 $16,710 Total Net Effect on Fund Balance $208,052 $123,424 ($76,381) $98,239 ($170,301) $241,641 End of Year Cash & Investments For Information .. PIM�U ........ ..... ........ ............................... Residential rate per lot $9.00 $9.50 $10.00 $10.50 $11.00 $11.50 Schools & govt buildings per acre $45.00 $47.50 $50.00 $52.50 $55.00 $57.50 Multiple family & churches per acr $108.00 $114.00 $120.00 $126.00 $132.00 $138.00 Commercial and industrial per acr $180.00 $190.00 $200.00 $210.00 $220.00 $230.00 • Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ADOPTING THE 1999 STORM DRAINAGE UTILITY RATE SCHEDULE WHEREAS, it is a requirement of the Brooklyn Center City Charter that Brooklyn Center's municipal utilities be self - sustaining entities through revenue provided by a uniform schedule of rates, fees, and charges; and WHEREAS, the Director of Public Works has reviewed the financial requirements of the Storm Drainage Utility and has developed a recommended rate schedule. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that the following schedule of Storm Drainage fees will be in effect as of January 1, 1999: CHARGE PER QUARTER PER ACRE Classification/Land Use 1998 1999 BASE RATE $36.00 $38.00 1. Cemeteries, Golf Courses 9.00 9.50 2. Parks 18.00 19.00 3. Single Family, Duplex, Townhouse 9.00 /lot 9.50 /lot 4. Schools, Government Buildings 45.00 47.50 5. Multiple Family, Churches 108.00 114.00 6. Commercial and Industrial 180.00 190.00 7. Vacant Land As Assigned As Assigned • • RESOLUTION NO. Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: • and the following voted against the same: whereupon said resolution was declared duly passed and adopted. BROOKLYN CENTER RECYCLING UTILITY 1999 RATE REVIEW Background The City Council on November 24, 1997 adopted Resolution 97 -211, which established recycling utility rates for 1997. The Council annually reviews established rates for their adequacy and makes adjustments as necessary. Recycling Financial Performance The recycling fund is primarily comprised of fees paid to Hennepin Recycling Group (HRG) for recycling services and, the charges to individual households to cover those costs. Some incidental expenditures and revenues are included for container sales and supplies. Performance for 1998 is projected to provide for a net operating income of approximately $15,000. Rate Setting Considerations The Hennepin Recycling Group (HRG) has established and approved its 1999 operating budget. The HRG has negotiated a multi -year contract, with no contract increase for 1999. HRG has indicated that Hennepin County will not decrease the recycling entitlement currently given to all HRG Communities. • As a result, HRG has indicated that there will be no need for an increase in fees for 1999. The rate will be maintained at $2.15 per household per month. Recommendation It is recommended that the rate established for 1999 in table 1, be implemented as planned, Rates would be maintained as follows: TABLE 1 RECOMMENDED RECYCLING UTILITY RATES Recycling Rate Per Month 1998 1999 Residential Households (Per Month) $2.15 $2.15 Residential Households (Annual) $25.80 $25.80 its adoption: Member introduced the following resolution and moved RESOLUTION NO. RESOLUTION ADOPTING THE 1999 RECYCLING RATES WHEREAS, the City of Brooklyn Center is a member of the Hennepin Recycling Group (HRG), which is a joint powers group formed pursuant to Minnesota Statutes, 1987, Section 471.59; and WHEREAS, the purpose of the joint powers agreement was to create an organization by which the member cities may jointly and cooperatively provide for the efficient and economical collection, recycling, and disposal of solid waste within and without their respective corporate boundaries, all in compliance with Minnesota Waste Management Act, Minnesota Statutes, 1987, Chapter 115A; and WHEREAS, the HRG has established a curbside recycling program for its member cities to meet the requirements of Hennepin County Ordinance No. 13, Solid Waste Source Separation for Hennepin County; and WHEREAS, Brooklyn Center Ordinance No. 89 -11 authorizes the City to establish • rates for recycling services; and WHEREAS, the HRG has established a rate of $2.15 per month per household for recycling services beginning January 1, 1999; and WHEREAS, the rates for recycling services established by the HRG reflect the amount needed to fund the City's curbside recycling program after the projected reimbursement of recycling program costs from Hennepin County. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that the above described rates established by the HRG for recycling services are hereby approved. Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member ® and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. • 1999 WATER AND SANITARY SEWER HOOKUP RATES BACKGROUND Utility hookup rates are adjusted annually to account for inflation. This year the change in the Twin Cities Consumer Price Index was 1.5 percent. Accordingly, the proposed water and sanitary sewer hookup rates for calendar year 1999 have been increased 1.5 percent over 1998's rates. RECOMMENDATION Approve the following hookup rates: Current Rates Proposed Rates Type of Property /Assessment 1998 1999 WATER HOOKUP Single Family Residence With $3,706.00 $3,760.00 Service* Single Family Residence Without 2,832.50 2,870.00 Service* Frontage (front 135 feet) $37.75 per front foot $38.27 per front foot Area (area outside front 135 feet) $11.65 per 100 square feet $11.83 per 100 square feet Service Hookup $875.00 $890.00 SANITARY SEWER HOOKUP Frontage $21.94 per front foot $22.27 per front foot Service Hookup $875. $890.00 * The difference between these two rates are: "With service" means a service was installed to the property line at the time the water main was installed, but the property did not hook up to city water and was never assessed for the service. "Without service" means no service was ever installed. A property now choosing to hook up would pay the hook up charge to the city, and hire a private plumber to install a service out to the water main. i its adoption: Member introduced the following resolution and moved RESOLUTION NO. RESOLUTION ADOPTING THE 1999 WATER AND SANITARY SEWER HOOKUP RATES WHEREAS, Resolution Nos. 74 -45 and 77 -113 provided for the annual adjustment of water assessment rates for non - single- family residential and single - family residential rates, respectively; and WHEREAS, said adjustment in water hookup rates is to be effective January 1 of each year; and WHEREAS, Resolution No. 88 -05 changed the month from which the annual price index change is to be calculated from October to July; and WHEREAS, the change in the Twin Cities Consumer Price Index from July 1997 to July 1998 was an increase of 1.5 percent; and • WHEREAS, City policy, based on Village policy established in April, 1956, is to calculate the cost of sanitary sewer hookup based on the average cost of a lateral system of sanitary sewers for a standard Village lot. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that the water and sanitary sewer hookup rates effective January 1, 1999 will be as follows: Type of Property /Assessment 1998 Rate WATER HOOKUP Single Family Residence with Service $3,760.00 Single Family Residence without Service $2,870.00 Frontage (front 135 feet) $38.27 per front ft. Area (area outside front 135 feet) $11.83 per 100 sq. ft. Service Hookup $890.00 SANITARY SEWER HOOKUP Frontage $22.27 per front foot • Service Hookup $890.00 • RESOLUTION NO. Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: • whereupon said resolution was declared duly passed and adopted. City Council Agenda Item No. 8g • • • MEMORANDUM DATE: November 19, 1998 TO: Michael J. McCauley, City Manager FROM: Diane Spector, Director of Public Work &VJO SUBJECT: Resolution Establishing Assessment Rates for Street Improvement Projects in Residential Areas in 1999 In accordance with the City's Special Assessment Policy, the City Council annually establishes assessment rates for street improvement projects. It is the intent of the Council that special assessments are levied against any property that can be deemed to benefit from such an improvement. Assessments for residential properties are made on a unit basis which applies to all single family residential properties benefitting from any street improvement project that year, and are intended to represent a specific portion of the average cost of reconstructing a typical residential street. Assessments for non - residential or multiple family residential projects are • computed separately for each project. For 1998, the Council adopted a unit rate for street reconstruction of $2,060 per parcel and for storm drainage improvements $670 per parcel that provided for an average 38 percent of the project cost to be assessed. Staff recommends the proposed assessments for 1999 be increased to a per unit rate for street reconstruction of $2,120 per parcel and for storm drainage improvements of $690 per parcel. Total assessments for 1999 would then be $2,810 per parcel, compared to $2,730 in 1998, a 3 percent increase. This is the same rate of increase as last year. The residential assessment rates for street reconstruction will apply to properties in R -1, R -2 or R -3 zoned districts. These rates will also be applied to parcels of property in other land use zones when such parcels (a) are being used as one - family or two - family residential sites at the time the assessment roll is levied; and (b) could not be subdivided under the then - existing Subdivision Ordinance. • Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ESTABLISHING 1999 STREET AND STORM DRAINAGE SPECIAL ASSESSMENT RATES WHEREAS, Resolution No. 85 -34 established residential street and storm drainage special assessment rates for street reconstruction projects; and WHEREAS, the residential assessment rates are annually reviewed and approved by the City Council; and WHEREAS, the residential assessment rates should be adjusted annually to be effective January 1; and WHEREAS, the proposed street assesment rates for 1999 are equivalent to 38 percent of an average project cost; and WHEREAS, the R-4, R -5, R -6 and R -7 zoned districts should be assessed based on an evaluation of project cost and project benefit. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL of the City of Brooklyn Center, Minnesota, that: 1. The residential street and storm drainage special assessment rates for street reconstruction shall apply to properties in R -1, R -2 or R -3 zoned districts. These rates shall also be applied to parcels of property in other land use zones when such parcels (a) are being used as one - family or two - family residential sites at the time the assessment roll is levied; and (b) could not be subdivided under the then - existing Subdivision Ordinance. 2. The residential assessment rates for street reconstruction effective January 1, 1999 shall be as follows: Land Use 1999 Assessment Rates R -1 zoned used as 120 per lot street y $ p (street) • site that cannot be subdivided $ 690 per lot (storm drainage) ® Resolution No. Land Use 1999 Assessment Rates R -2 zoned, or used as a two - family $28.27 per front foot with a site that cannot be subdivided $2,120 per lot minimum (street) $9.20 per front foot with a $690 per lot minimum (storm) R -3 zoned Assessable frontage x $28.27 (street) Number of residential units Assessable frontage x $9.20 (storm) Number of residential units 3. The residential assessment rates for street reconstruction shall not apply to R -4, R- 5, R -6, or R -7 zoned districts. The assessment rates for street reconstruction for R- 4, R -5, R -6, or R -7 zoned property shall be based on an evaluation of the project cost and the project benefit for each project. Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member, and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. City Council Agenda Item No. 8h 1 KLYN CE'VtF9 BROOKLYN CENTER - - • POLICE DEPARTMENT POLICE MEMORANDUM TO: Michael McCauley, City Manager FROM: Joel Downer, Chief of Polic / DATE: November 19, 1998 SUBJECT: Humboldt Square Substation During the last several years the police substation located at Humboldt Square has evolved into a Family Resource Center that is staffed and operated by Northwest Hennepin Human Services Council. The police department continues to support the Family Resource Center by presenting programs to children that participate in after school tutoring. s I have received correspondence from Tony and Jean Ouellette, owners of Humboldt Square Shopping Center, that the rent for the Family Resource Center will be $400 per month beginning January 1, 1999. Attached are � two memos drafted by Sergeant Dave Grass dated May 5, 1998. One memo outlines the history of the Humboldt Avenue Substation and the other describes current activities offered by the Family Resource Center. These memos are an accurate reflection of how the substation has evolved from a police substation to a Family Resource Center affiliated with Northwest Hennepin Human Services Council. I recommend that the Brooklyn Center Police Department no longer staff or have official affiliation with the Humboldt Avenue Substation/Family Resource Center effective January 1, 1999. The recommendation is supported by the following data: 1. The police department has not budgeted for rental of a store front at Humboldt Square. 2. The services offered have evolved from a law enforcement contact in the community to a social service aspect. The Northwest Human Services Council plans to continue to offer services from the substation location. ® 3. The Brooklyn Center Police Department is moving to a facility within a block of the substation. The new police facility will be serving the neighborhood far better than a substation. JD /j m sunstac.mem October 22, 1998 Brooklyn Center Police Department Attn: Scott Kline 6301 Shingle Creek Pkwy. Brooklyn Center, Mn. 55430 -2199 Dear Mr. Kline: Three years ago, we purchased Humboldt Square Shopping Center. In that time we have encountered many expenses. The latest one being the new roof over your space. The cost came in quite a bit over expected, but it needed to be done. We find it necessary, at this time, to increase your rent to $400.00 per month. The start of the new rent would be January 1, 1999. . If this is not acceptable to you, please let us know as soon as possible, so we may start to market the space for January 1, 1999. If you have any questions, concerning the above, please call us at 588 -2302. Sincerely, Tony and Jean Ouellette O �ppKIYN CFpT� BROOKLYN CENTER POLICE � DEPARTMENT p oL , CE MEMORANDUM TO: Captain McComb FROM: Sergeant Grass DATE: May 5, 1998 SUBJECT: Humboldt Avenue Substation History The Humboldt avenue COP Substation opened in July of 1992. It was originally staffed with three officers so that there was usually a pair to go out on foot patrol. The officers were housed out of the Substation, but spent most of their time walking, mostly in the various apartment areas in Brooklyn Center. The officers also set up a network of citizen volunteers who would be at the Substation from 7 -10 pm and Saturday afternoons. The officers and volunteers established a number of traditions which included an end of the summer open house which continued on into 1997. The volunteers also organized Halloween, Christmas and Easter parties which also continued into the summer of 1997. The volunteers also set up some classes to be held at the Substation such as karate, babysitting, and CPR training. Over the years the Substation was given tickets to various sporting events like Twins and Vikings games. Volunteers and officers took needy kids from the neighborhood to those events. In 1994, a controversial decision was made to put the three Substation officers back on patrol to cover summer shift shortages. One sergeant was still assigned to be in charge of the Substation, but he was not based out of the Substation. In place of the officers being there, the midwatch supervisors were told to assign officers to stop by the Substation during the hours that volunteers were there. That plan was kept into effect with cycles of rising and falling enthusiasm for it until it was discontinued in the fall of 1997 due to the lack of volunteers to keep the Substation open. During the time period between 1994 and 1997 it became more and more difficult to find volunteers. It is speculated that part of the problem was that once the Humboldt area was "cleaned up" by a variety of city efforts that people didn't perceive that there was the problem there, hence the need for the Substation. It is also believed that some of the most enthusiastic volunteers simply got burnt out. Z Another contributing factor could have been the loss of funding for the Substation. In 1994 and 1995 and possibl even earlier, arrangements had been made to have Substation volunteers help park cars at Saints games throughout the summer. This was an excellent fundraiser and did raise a fair amount of money for Substation programs. Due to an ownership change of the property, the Substation volunteers were cut out of that money making activity in 1996. No other fundraising activity was found that could Generate that much money. �1emo May 5, 1998 Page 2 In the fall of 199 Northwest Human Services proposed using the Humboldt Avenue Substation during the day time hours to run a family resource center. The idea was that both programs would help each other and occupy the Substation at different hours. This finally came about in the summer of 1996. This was controversial with some of the volunteers with some eventually dropping out as they were of the opinion that they did not "vish to share the space with another program. During the winter of 1996 and 1997, there was a noticeable drop in the number of volunteers and so the nights that the Substation was open was lowered to three nights per week for two hours. That eventually changed to two nights per week for two hours. During the last three years of operation the focus of the volunteers was to have a safe place for kids to come and play in the evening. There were a number of different approaches taken and a real positive impact was made on a number of kids that lived under difficult circumstances. As the nights the Substation was open dwindled, the family resource center began using the evening for some of its programs and now the family resource center has something going almost every night of the week. Some of the other activities that the Substation was involved with was a float in the 1995 Earle Brown Days Parade and participation just by a walking group in the 1996 and 1997 parades. The • volunteers have been responsible for the Shingle Creek Parkway trail clean -up. DG /jm subs[a2.mem • i.7 R e��OXL7A C�y f9 OOKLYN CENTER POLICE DEPARTMENT DEPARTMENT po„ MEMORAND" TO: Captain McComb FROM: Sergeant Grass DATE: May 5, 1998 SUBJECT: Current Activities Offered by the Family Resource Center The coordinator at the Family Resource Center is there Mondav afternoon and evenings and Tuesday through Friday, day hours. She is set u to help p any r e stdent that comes to with any problem. She has a wide database of services available and can rely on Northwest Human Services for help with problems that she cannot find help for. Some of the most common problems that she helps area residents with are finding a new apartment, problems with apartment managers, assistance with getting food, help in getting set up with a GED class, and help in looking for jobs. She will make a stab at solving any problem that people come in with. • She has available the First Call for Help System. She is supervised and supported by the Early Childhood Development Division of the Brooklyn Center School District. The Resource Center does sponsor a" Grades Are Us" program for an hour and a half after school. Kids attending are given assistance with their homework or are occupied with other learning projects. This goes on Monday through Thursday. During the summer it is replaced by two separate sections of structured activity for children, one morning and one afternoon session. Hennepin County Economic Assistance workers come to the Substation for certain hours every week. Community Health Outreach workers also have set hours and are available for residents to make an appointment if they cannot make those set hours. Newly available is a licensed psychologist that will provide mental health counseling for families that set up an appointment. This psychologist's focus is mainly working with dysfunctional families and abuse situations. The Substation is open Tuesday and Thursday nights for GED preparation classes. On Friday night the Family Resource Center is open for Friday Night Frolics which focuses on activities chat kids can do for fun. The age groups and the seY of attendees change every week. Available at the Substation is the Hennepin County Library computer which anyone can use to access the library system and also can used for word processing. The most common use for this is for residents to come in and do resumes. There also are a number of learning programs that kids can play. ` Memo May 5, 1998 Page 2 Also available at the Substation is the "Simply Good Eating" program which teaches area residents proper food preparation techniques, nutrition, and how to stretch out the food budget and still have it be nutritious. Starting next fall, classes will be added on assisting people to move from welfare to work. This will focus on job skills, interviewing, and a support system to allow nonworkers to keep a job once they have obtained one. DG /jm suosnn.^�e.^i a City Council Agenda Item No. 8i i MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Brad Hoffman, Community Development Director DATE: November 19, 1998 SUBJECT: Accepting Bids and Awarding Contracts for Earle Brown Heritage Center Building Additions and Renovations Bids were received and opened on November 18, 1998 for the Earle Brown Heritage Center Building Additions and Renovations. E & V Construction Management and I are in the process of reviewing and evaluating the bids received. We received bids for the following bid packages: -Bid Division 3031 -EB: Building and Site Concrete -Bid Division 3061 -EB: Carpentry and Demolition -Bid Division 3071 -EB: EPDM and Metal Roofing -Bid Division 3081 -EB: Aluminum, Glass and Glazing -Bid Division 3082 -EB: Hollow Metal, Wood Door and Hardware - Supply -Bid Division 3091 -EB: Carpet and Hard Tile -Bid Division 3092 -EB: Acoustical Ceilings -Bid Division 3093 -EB: Painting -Bid Division 3101 -EB: Operable Folding Partitions -Bid Division 3151 -EB: Plumbing and HVAC -Bid Division 3152 -EB: Fire Protection -Bid Division 3153 -EB: Temperature Controls -Bid Division 3161 -EB: Electrical I will have a recommendation and resolutions accepting the bids on Monday evening for the City Council to consider. City Council Agenda Item No. 8j • MEMORANDUM DATE: November 19, 1998 TO: Michael J. McCauley, City Manager FROM: Diane Spector, Director of Public Wor SUBJECT: Staff Report Re: Water Works Facility Study Periodically, the City's water utility engages an outside consultant to review the water works facilities and to make recommendations regarding improvement. The last study was conducted in 1989 by the firm Black and Veatch. In 1998, the utility engaged Bonestroo Rosene Anderlik & Associates (BRAA) to update that report and make recommendations. In summary, the report has found the City's water works facilities sound and adequate. The improvements recommended in the Black and Veatch report have all been completed with one exception. The Black and Veatch report recommended drilling two additional wells. One has been completed, and BRAA has confirmed staff's analysis that the second well is not necessary. The report reviews all aspects of the City's water works: supply, distribution, and water quality. • The report also reviewed certain additional practices such as water conservation. The report finds that there is adequate supply. The projected maximum day demand for water is 10 million gallons per day (MGD), and the City's "firm capacity," defined as the ability to supply water with the largest well out of service, is 14 MGD. The 3 million gallons of storage in the three water towers is adequate to provide system storage, pressure, and fire reserve. The water distribution system is adequate to deliver maximum day flow. There are a few individual areas where maximum day plus fire flow is inadequate. These are primarily spot deficiencies, in some cases in private developments and in some cases at the end of distribution lines. None of these pose any immediate hazard, and will be corrected where possible through Neighborhood Street and Utility Program improvements. At the same time as this study, the City's ISO rating fore protection classification was reevaluated. On a scale of 1 to 10, with 1 being the highest, Brooklyn Center earned a rating of 4, which is about as high as can be achieved with a volunteer fire department. The water system portion of the evaluation earned 38.06 out of a possible 40 points, indicating that for fire fighting purposes, the water works system is about as good as it can get. The annual odd /even sprinkling restrictions have been very successful in reducing peak demands. This has been instrumental in the reducing the need for the second well which Black and Veatch ® thought might be necessary. The report recommends that the City continue those measures, and increase water conservation education to continue to reduce maximum demand. • Finally, the report evaluated the need for additional facilities. As noted above, no additional wells or storage facilities are required. The water pumped from the wells meets all USEPA Primary Drinking Water Standards. However, the City's water does exceed Secondary standards for iron and manganese. The presence of these minerals, which occur naturally in ground water, is not a health hazard. However, they can result in odors, metallic taste, and "black specks" in the water, which are an aesthetic problem. Even though the utility adds certain chemicals to the water to reduce the incidence of mineral precipitation and odor, some homeowners do occasionally have a problem. In 1997, the water utility recorded 28 odor, color, or taste complaints. In past years, upwards of 50 complaints would be recorded, but that number has been steadily decreasing. It is not known how many people experience problems but do not call the water utility to complain. An iron and manganese removal plant would eliminate these problems. The report evaluated the potential size, location, and cost of a treatment facility. A suitable site is available on City - owned land in the wellfield east of Evergreen Park. The cost of such a facility would vary based on type of treatment method used and size, but generally ranges from $6.7 to $8.0 million. Financed with water utility revenue bonds, debt service and increased operational costs would result in a water rate increase of about $0.60 per thousand gallons. In 1999, the City's base water rate will be $0.91 per thousand gallons, so that would be a substantial increase. At this time, staff recommends that the Council not pursue the option of a treatment facility, as it is not required to meet federal drinking water standards. However, if in the future the drinking water standards are amended to require treatment, then this is useful and time - saving information to have as a starting point. I have attached the executive summary from the report. Copies of the report are available on request. Executive Summary f Introduction 1 This report summarizes the findings of the Water Works Facility Study. The facility study is a I comprehensive study of the City of Brooklyn Center's water system. The previous comprehensive water study titled Report on Water Works Facilities was completed in 1989. f Growth and Water Demand The City of Brooklyn Center's population peaked at approximately 37,000 persons in 1975. The City's population has declined somewhat since 1975 to a current population of approximately 28,500 persons. The Metropolitan Council is projecting a 7% increase in population to 30,500 persons by the year 2020. Beginning in 1989, the City has instituted a water conservation program which has sib ificantly reduced maximum day water demands. In addition, a public education program will be implemented that should have the effect of further reduction in water demand. The historic maximum day demand of 12.64 million gallons per day (MGD), occurred on July 6, 1988, during the 1988 drought. Since 1988, maximum day demands have declined as the result of implementation of the water conservation program. A 10 MGD maximum day demand has been projected for the year 2020, primarily on the basis of the success of the water conservation program in reducing maximum day demand. Existing Facilities u The existing supply, storage, and distribution system has served Brooklyn Center's needs quite well. The supply portion of the water system consists of nine wells with a total capacity of 16.2 MGD. The firm capacity of the wells, defined as the remaining capacity with the largest well out of service, is 14 MGD. Because the firm capacity of the City's wells exceeds the projected maximum day demand of 10 MGD, no additional wells are needed. The storage component of the city's water system consists of three elevated reservoirs with a total capacity of 3.0 million gallons (MG). The supply - storage analysis completed as part of this facility study has concluded that this storage capacity is adequate. Therefore, no additional elevated reservoirs are needed. City of Brooklyn Center — Water Works Facility Study 1 The City's water distribution system consists of a system of water mains, varying in size from four inches to 30 inches in diameter. In general, the distribution system is adequate to deliver fire flow superimposed on maximum day flow. However, there are some areas where the distribution system is not adequate to deliver the required fire flow. No recommendations have been made in this report to improve the water distribution system. Water main improvements in those areas of deficient fire flow should be constructed as part of future street reconstruction projects. Construction of water main improvements in conjunction with street reconstruction projects significantly reduces costs. j Currently, the City does not treat the water pumped from the wells with the exception of chemical addition at the wellhouses. Need For Additional Facilities The water pumped from the City's wells meets all U.S. Environmental Protection Agency Primary Drinking Water Standards, which are legally enforceable standards. However, the City's water supply exceeds the EPA Secondary Standard for manganese. The City's water department receives numerous complaints related to iron and, primarily, manganese - red or black water, metallic taste, and odors. Also, the water department receives complaints related to hydrogen sulfide - "rotten egg" odor. An iron and manganese removal plant would remove iron and manganese and eliminate the hydrogen sulfide problem. Although not required to meet Primary Drinking Water Standards, an iron and manganese removal filtration plant would correct the aesthetic problems noted above. Plants of varying capacity (6 MGD - 10 MGD), utilizing optional filtration systems - pressure or CT were reviewed and the City's wellfield does have a City -owned site suitable for locating a plant. Cost estimates for a basic water plant, as well as, a water plant with additional water department facilities (garage and shop) range from $6.7 to $8.0 million. If a water plant were to be constructed, it would be financed with Water Utility revenue bonds and would increase the water rate from the current $0.89 per thousand gallons to approximately $1.50 per thousand gallons, for a 68 increase. The current 50.89 per thousand gallon rate is in the lower 10% of rates charged by metropolitan area cities, according to statistics provided by the Metropolitan Council. s City of Brooklyn Center — Water Works Facility Study 2 City Council Agenda Item No. 8k • • Member introduced the following resolution and moved its • adoption: RESOLUTION NO. RESOLUTION ACCEPTING BID, AND AWARDING CONTRACTS FOR NEW WEST FIRE STATION AND EAST FIRE STATION REMODELING, IMPROVEMENT PROJECT NO. 1998 -10 AND 1998 - 11 WHEREAS, the City Council established Improvement Project 1998 -10, Demolition and Construction of new West Fire Station, and 1998 -11 East Fire Station Remodeling by Resolution 97 -205, WHEREAS, the City Council hired the Bossardt Company to perform construction management duties on these two projects and Bossardt Company has submitted recommendations for approval of bid package #1 and bid package #2, a portion of the bids for both West Fire and East Fire Station projects, WHEREAS, the following bids were received and opened on September 2, 1998, and September 16, 1998 for bid packages # 1 and #2 on Improvement Project No 1998 -10 and 1998 -11, and these bids have been reviewed by Bossardt Company in its capacity as Construction Manager on ® the project, and have been recommended for approval by the City Council, West Fire Station: 1.04 - Landscaping Helmin Landscaping $ 41,500 1.08 - Masonry Axel H. Oman, Inc. $ 39,000 1.09 - Structural Wood Structural Wood Corporation $106,500 1.10 - Carpentry Spicer Contracting $ 45,028 • • 1. 12 - Roofing Commercial Roofing $142,205 1.13 - Hollow Metal/Wood Doors Glewwe Doors, Inc. $ 32,850 1.15- Aluminum Entrances /Glazing Empirehouse, Inc. $ 74,972 1.16 - Skylight W. L. Hall Company $ 15,103 1.17- Drywall Mulcahy Drywall, Inc. $ 93,570 1.18 - Tile • Twin City Tile & Marble $ 53,965 1.19- Acoustical Ceiling Twin City Acoustics $ 7,295 1.20- Carpet Gebert Floors $ 13, 483.20 1.22- Special Flooring Diversified Coatings $ 22,439 1.24 - Miscellaneous Specialties Specialty Sales Service $ 14,471 1.25- Lockers 7F Equipment $ 13,400 • ® 1. 30 - Fire Protection Brothers Fire Protection $ 28,730 East Fire Station: 1.02- Carpentry Kellington Construction $ 23,700 1.04 - Roofing Commercial Roofing $ 88,554 1.05- Hollow Metal/Wood Doors Glewwe Doors, Inc. $ 9,260 1.06 - Aluminum Entrances /Glazing • Minneapolis Glass $19,350 1.08 - Drywall Berg Drywall, Inc. $45,900 1.09 - Tile Grazzini Brothers & Company $24,495 1.10- Acoustical Ceilings Twin City Acoustics $ 5,725 1.11- Carpet Gebert Floors $ 4,284.86 1.12 - Special Flooring Stonhard, Inc. $ 17,650 1. 14 - Miscellaneous Specialties Specialty Sales Service $ 11,180 1.15- Lockers JF Equipment $ 10,400 1.19 - Fire Protection Brothers Fire Protection $ 7,595 WHEREAS, Bossardt Company has advised the City Council that the above contractors are the lowest responsible bidders, The Mayor and City Manager are hereby authorized to direct Bossardt Company to proceed with development of the contract and the administration of the contract for the above bids in accordance with Bossardt duties as Construction Manager on 1998 -10 and 1998 -11 Improvement projects. Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the follo'%;� ing voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. BOSSARDT CORPORATION Professional Construction Managers November 18, 1998 City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430 ATTENTION: Michael McCaulev RE: BROOKLYN CENTER FIRE STATIONS EAST & WEST RECOMMENDATION FOR CONTRACT AWARDS Dear Mr. McCauley: Based on bid results with the apparent low bidders, we are making the following recommendations for award. Listed below are the remaining bid results for the East & West Fire Stations bid packages 91 & 92, of which we are seeking approval at the November 23, 1998, City Council Meeting. The bidding response was successful for these projects. To achieve these results, we mailed approximately 200 bid notices and made over 300 telephone calls. As a result, we received over 160 bids for the various categories. The award of the contracts will keep the project moving forward. To keep the project budget under control, we are recommending to hold the following bid categories under review for potential cost savings with the low bidder. WEST: 1.11 - Casework 1.14 - Overhead/Co 1 ling Doors 1.23 - Painting & Wall Coverings EAST: 1.03 - Casework 1.07 - Overhead/Coiling Doors 1.13 - Painting & Wall Coverings 7400AIco tiBmilemid Smlr400 frmuuhrli,d1.A'�j 31. n?6• l6l_' 1831540 ,ti•(N(iQ/2y0- Ol/9•fa.r(6/_')8i1 - 12 6 8 %-, lr 1 C1C1 City of Brooklyn Center i �i 1 ►�1 August 19, 1998 Page 2 We did not receive bids on a number of smaller contracts, (under $10,000). We will be requesting quotes from suppliers for these contracts. We will receive a minimum of 3 cost quotes for these contracts in order to ensure the best possible price. These contracts are as follows. WEST: 1.26 - Operable Wall 1.27 - Appliances & Equipment 1.28 - Window Blinds 1.29 - Wall Beds EAST 1.16 - Appliances & Equipment 1.17 - Window Blinds (As Listed Above) 1.18 - Wall Beds The award of contracts from the September 16, 1998, bid opening and remaining contracts from the September 2, 1998 bid opening are as follows: WEST: 1.04 Landscaping: Helmin Landscaping Inc. $41,500.00 1.08 Masonry: Axel H. Ohman Inc. $39,000.00 1.09 Structural Wood: Structural Wood Products $106,500.00 1.10 Carpentry: Spicer Construction Co. $45,028.00 1.12 Roofing: Commercial Roofing Base Bid = 157,805 Cost Savings 41 = 4600 Cost Savings 42 = 11,000 Final Contract = $142,205.00 City of Brooklyn Center August 19, 1998 Page 3 1' 1.13 Hollow Metal /Wood Doors & Frames /Hardware: Glewwe Doors Inc. $32,850.00 1.15 Aluminum Entries /Glazing; Empirehouse Inc. Base Bid = 87,439 Cost Savings 91 = 12,467 Final Contract = $74,972.00 1.16 Skylights: W.L. Hall Co. Base Bid = 17,347 Cost Savings #1 = 2,244 Final Contract = $15,103.00 1.17 Drywall: Mulcahy Drywall Inc. $93,570.00 1.18 Tile: Twin City Tile & Marble $53,965.00 1.19 Acoustic Ceilings: Twin City Acoustics $7,295.00 1.20 Carpet/Floor Coverings: Gebert Floors $13,483.20 1.22 Special Flooring (Quartz Floor): Diversified Coatings $22,439.00 1.24 Misc. Specialties: Specialty Sales Service $14,471.00 1.25 Lockers: JF Equipment $13,400.00 1.30 Fire Protection: Brothers Fire Protection $28,730.00 City of Brooklyn Center 411F August 19, 1998 Page 4 EAST: 1.02 Carpentry: Kellington Construction Inc. $23,700.00 1.04 Roofing: Commercial Roofing Base Bid = 95,324 Cost Savings 41 = 6,770 Final Contract = $88,554.00 1.05 Hollow Metal /Wood Doors & Frames /Hardware: Glewwe Doors Inc. $9,260.00 1.06 Aluminum Entries /Glazing: Minneapolis Glass Co. Base Bid = 28,500 Cost Savings 91 = 9150 Final Contract = $19,350.00 1.08 Drywall: Berg Drywall Inc. Base Bid = 51,000 Cost Savings 91 = 5,100 Final Contract = $45,900.00 1.09 Tile: Grazzini Bros. & Co. $24,495.00 1.10 Acoustic Ceilings: Twin City Acoustics $5,725.00 1.11 Carpet/Floor Coverings: Gebert Floors $4,284.86 1.12 Special Flooring (Quartz Floor): Stonhard Inc. $17,650.00 1.14 Misc. Specialties: Specialty Sales Service $11,180.00 City of Brooklyn Center August 19, 1998 1 J Page 5 1.15 Lockers: JF Equipment $10,400.00 1.19 Fire Protection: Brothers Fire Protection $7,595.00 Approval of the above referenced contracts will allow this project to proceed on schedule. Yours very truly, (Do,— 9 cv�"4� Dave Hanson Senior Project Manager DH:dt cc: Jane Chambers Al Mjorud File 9714AB.510