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Home My WebLink About1997 03-24 CCP Regular Session • CITY COUNCIL AGENDA Public Copy CITY OF BROOKLYN CENTER March 24, 1997 7 p.m. 1. Call to Order 2. Roll Call I � 3. Invocation 4. Council Report 5. 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. I . February 24, 1997 - Regular Session b. Resolution Authorizing Video Display Terminal Eyewear Purchase Policy C. Resolution Accepting Bid and Authorizing the Purchase of One Golf Course Fairway Mower d. License to Utilize Explosives Permits for The Howe Company e_ Licenses I 6. Open Forum 7. Public Hearing a. An Ordinance Vacating Drainage and Utility Easements in Tract A, Registered Land Survey Number 1572 (Sunlite Properties) -This item was first read on February 24, 1997, published in the official newspaper on March 5, 1997, and is offered this evening for a second reading and public hearing. -Requested Council Action: • -Open the public hearing. -Take public input. -Close the public hearing. - Motion to adopt ordinance. CITY COUNCIL AGENDA -2- March 24, 1997 8. Council Consideration Items a. Resolution Expressing Recognition and Appreciation of Eric Marquardt for His Dedicated Public Service on the Charter Commission - Requested Council Action: - Motion to adopt resolution. b. Resolution Acknowledging Donations from the Brooklyn Center Lions Club for Recreation Programs - Requested Council Action: - Motion to adopt resolution. C. Proclamation Declaring April 13 through 19, 1997, as Volunteer Recognition Week - Requested Council Action: - Motion to adopt proclamation. d. Discussion of Utility Billing Collection Procedures - Requested Council Action: - Council discuss. e. Resolution Approving an Amended Investment Policy • - Requested Council Action: - Motion to adopt resolution. £ Resolution Awarding Contracts for City Insurance Policies and Contracts for the Insurance Agent and Insurance Consultant for 1997 - Requested Council Action: - Motion to adopt resolution. g. Resolution Establishing Improvement Project No. 1997 -14, Retrofit of Several Wells with ASDs for Energy Conservation - Requested Council Action: - Motion to adopt resolution. h. Resolution Approving Final Plat - METRO MOTORS ADDITION -This item relates to the proposed Mitsubishi dealership at the site of the old Red Lobster. The preliminary plat was approved by the Council on January 27, 1997. - Requested Council Action: - Motion to adopt resolution. 9. Adjournment • CITY COUNCIL AGENDA -3- March 24, 1997 • EDA AGENDA CITY OF BROOKLYN CENTER March 24, 1997 7 p.m. 1. Call to Order 2. Roll Call 3. Approval of Agenda -The following items are considered to be routine by the Economic Development Authority and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the consent agenda and considered at the end of Commission Consideration Items. a. Approval of Minutes - Commissioners not present at meetings will be recorded as abstaining from the vote on the minutes. 1. February 10, 1997 - Regular Session • 2. February 24, 1997 - Regular Session 4. Commission Consideration Items a. Resolution Establishing Improvement Project No. 1997 -12, Contract 1997 -1, Residential Demolition, Approving Plans and Specifications and Authorizing Advertisement for Bids -This item relates to the 53rd Avenue Development and Linkage Project area. -Requested Commission Action: - Motion to adopt resolution. 5. Adjournment • 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 FEBRUARY 24, 1997 CITY HALL CALL TO ORDER The Brooklyn Center City Council met in regular session 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, Public Services Director Diane Spector, City Engineer Scott Brink, City Attorney Charlie LeFevere, and Council Secretary LeAnn Larson. INVOCATION Invocation was given by Father Martin Stillmock, St. Alphonsus Church. COUNCIL REPORTS Councilmember Carmody reported on a recent Human Rights and Resources Commission meeting and that the Commission's bias/hate crime response policy proposal should be ready for the joint meeting in April with the City Council. Councilmember Lasman reported on a recent Crime Prevention meeting and the starting of a neighborhood watch by a boy scout troop. PRESENTATION State Representative Phil Carruthers noted that the Legislative session is underway. Issues under consideration include: the State budget surplus, the crime issue, and the multi -unit property bill. He also noted work on the Brookdale water ponding funding bill. APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Hilstrom requested item 61 be removed from the consent agenda for discussion. Mayor Kragness requested that item 10.g. Heritage Festival Discussion be added • 2/24/97 -1- DRAFT to the agenda. Councilmember Peppe requested item 6.g. be removed from the consent agenda for discussion. A motion by Councilmember Carmody and seconded by Councilmember Hilstrom to approve the agenda and consent agenda as amended passed unanimously. APPROVAL OF MINUTES A motion by Councilmember Carmody and seconded by Councilmember Hilstrom to approve minutes of the January 27, 1997- Regular Session as printed passed unanimously. APPROVAL OF APPLICATION FOR EXEMPTION FROM LAWFUL GAMBLING LICENSE (RAFFLE2FROM EARL E BROWN ELEMENTARY PTA A motion was made by Councilmember Carmody to approve the application for exemption from lawful gambling license (raffle) from Earle Brown Elementary PTA. The motion was seconded by Councilmember Hilstrom and passed unanimously. APPROVAL OF APPLICATION FOR EXEMPTION FROM LAWFUL GAMBLING LICENSE (RAFFLE) FROM NORTH HENNEPIN COMMUNITY COLLEGE A motion was made by Councihnember Carmody to approve the application for exemption • from lawful gambling license (raffle) from North Hennepin Community College. The motion was seconded by Councilmember Hilstrom and passed unanimously. RESOLUTION NO. 97 -35 Member Carmody introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING ISSUANCE OF A LAWFUL GAMBLING LICENSE TO THE BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION TO OPERATE A PULL -TAB MACHINE AT THE DUOOS BROTHERS LEGION POST #630 The motion for the adoption of the foregoing resolution was duly seconded by member Hilstrom and passed unanimously. PROCLAMATION DECLARING MARCH 2 THROUGH MARCH 9 1997 AS VOLUNTEERS OF AMERICA WEEK A motion was made by Councilmember Carmody declaring March 2 through March 9, 1997, as Volunteers of America Week. The motion was seconded by Councilmember Hilstrom and passed unanimously. • 2/24/97 -2- DRAFT RESOLUTION NO. 97-36 • Member Carmody introduced the following resolution and moved its adoption: RESOLUTION APPROVING CHANGE ORDER NO. 1, IMPROVEMENT PROJECT NO. 1995 -05, CONTRACT 1996 -C, 69TH AVENUE NORTH, SHINGLE CREEK PARKWAY TO DUPONT AVENUE NORTH, STREET, BRIDGE REPLACEMENT, ROADWAY, DRAINAGE, AND UTILITY IMPROVEMENTS The motion for the adoption of the foregoing resolution was duly seconded by member Hilstrom and passed unanimously. RESOLUTION NO. 97-37 Member Carmody introduced the following resolution and moved its adoption: RESOLUTION APPROVING CHANGE ORDER NO. 1, IMPROVEMENT PROJECT NOS. - 1996 -06, 07, AND 08, CONTRACT 1996 -G, LOGAN, JAMES, KNOX, AND 57TH, STREET, STORM DRAINAGE, AND UTILITY IMPROVEMENTS The motion for the adoption of the foregoing resolution was duly seconded b member p g g Y Y Hilstrom and assed . unanimousl P unanimously. S LI EN E Mechanical Systems Excel Air Systems, Inc. 2075 Prosperity Road, Maplewood North Suburban Heat & Air 19066 Jasper NW, Anoka Owens Services Corporation 930 East 80th Street, Bloomington Preferred Mechanical Services 7643 Logan Avenue South, Richfield River City Sheet Metal, Inc. 10105 Linnet Street NW, Anoka Rental Dwelling Initial: Imo Lane 5937 Camden Avenue North William Washington 523941 Drew Avenue North Renewal: Evangelical Lutheran Church of the Master Brookdale Manor Norman Chazin Carrington Drive Center Park Senior Apts Maranatha Place Norman Chazin 6037 Brooklyn Boulevard Nancy Dahlquist 4700 Lakeview Avenue North • 2/24/97 -3- OPEN FORUM • There were no requests for open forum. PUBLIC HEARINGS ORDINANCE AMENDING CHAPTER 35 OF THE CITY ORDINANCES REGARDING THE ZONING CLASSIFICATION OF CERTAIN LAND (BROOKDALE MITSUBISHI) City Manager McCauley explained that this ordinance amendment was first read on January 27, 1997, published in the official newspaper on February 5, 1997, and is offered for a second reading and public hearing. On January 13, 1997, the Council adopted Resolution No. 97 -09 which approved Planning Commission Application No. 96017, submitted by Brookdale Mitsubishi. That application was a request for rezoning and Planned Unit Development approval for the development of a Mitsubishi dealership on 7.035 acres of land located along the west side of Brooklyn Boulevard, northerly of Shingle Creek. One of the conditions of that approval required the applicant to replat the various parcels into a single parcel and that this replat be given final approval and be filed with Hennepin County prior to the issuance of building permits for the project. On January 27, 1997, the Council approved Planning Commission Application No. 97002, • submitted by Brookdale Mitsubishi, requesting Preliminary Plat approval to combine the four parcels of land into a single parcel. Also at that time, the City Council considered a first reading on an ordinance amendment relating to Chapter 35 regarding the zoning classification of this land. This is a housekeeping -type ordinance amendment and would redescribe the properties created through this platting process. The applicant has not submitted the final plat for this property; therefore, the legal descriptions utilized in the zoning ordinance amendment are non - existent. A motion by Councilmember Hilstrom and seconded by Councilmember Carmody to open the public hearing passed unanimously. There was no public input. A motion by Councilmember Carmody and seconded by Councilmember Peppe to close the public hearing passed unanimously. A motion was made by Councilmember Carmody to continue the public hearing until the final plat is received. The motion was seconded by Councilmember Lasman and passed unanimously. • 2/24/97 -4- DRAFT • PUBLIC HEARING REGARDING PROPOSED IMPROVEMENT PROJECT NOS 1997 -01 02, AND 03. ORCHARD LANE WEST. STREET, STORM DRAINAGE, AND UTILITY IMPROVEMENTS City Engineer Scott Brink introduced Improvement Project Nos. 1997 -01, 02, and 03 in the Orchard Lane West area. The proposed improvements are generally described as follows: replacement of the existing streets with new bituminous surfacing and concrete curb and gutter, storm sewer installation, repair and replacement of existing sanitary sewer mains, replacement of all water mains, and street light replacements. Additional street lighting will also be installed at locations where allowed under the City's street lighting policy. Councilmember Hilstrom asked about the time factor in project completion as compared to the Orchard Lane East project area in 1996. Mr. Brink stated that last year's improvement project in this area was completed by the projected date. Councilmember Carmody asked about additional street lights. Mr. Brink noted the 700' minimum distance for street lights, citing the addition of five street lights in the project area. Councilmember Hilstrom asked about the street light brilliancy. Mr. Brink noted that the new lights will be a softer light but still as bright. Ms. Hilstrom also asked if the range in lighting distance would be the same; Mr. Brink responded affirmatively. A motion by Councilmember Carmody and seconded by Councilmember Hilstrom to open the public hearing passed unanimously. Public input was offered. Mayor Kragness read a letter from Orwall Olson, 6324 Perry Avenue North, in support of the project. Arlene Kemp, 4807 Howe Lane, requested additional lighting in the Howe Lane cul -de -sac and along the path in the Orchard Lane Park area. Mr. Brink will look into this matter. Will Rogers, 5207 65th Avenue North, expressed concern over some large evergreens in his front yard and the street easement area. Mr. Rogers also inquired about how to work out details with the project contractor to get his driveway redone at the same time as the street aprons are being done. Councilmember Carmody reminded citizens that many more details are forthcoming in project newsletters and mailings. Doug Haftings, 5201 Howe Lane, asked questions regarding the crown of the road, widening the width of the apron, the order of project work, and various assessment questions, to which Ms. Spector responded. • 2/24/97 -5- D RAFT Ron Lindgren, 1707 69th Avenue North, inquired why the street lights were being replaced • rather than reused. Mr. McCauley responded that cost of operation was a factor, and Ms. Spector advised that the reduced costs of electricity paid back the cost of new lights over the life of the fixtures. Clarence Dhein, 6344 Quail Avenue North, inquired about parking when aprons are curing. Ms. Spector noted that no ticketing is done in street project areas due to these special circumstances. Bill Brain, 5207 Eleanor Lane, asked why he will be paying the same assessment when his sanitary sewer line is not proposed to be replaced. Mr. McCauley responded that the Council policy resulted in the same charge regardless of street width, amount of traffic, and other factors, and, while not perfect, was a reasonably fair way to treat all residences the same. Trevor Strike, 5131 Winchester Lane, asked that closed roads in the project area be better marked. Ms. Spector said that the issue of providing better signage will be addressed. Jim McCabe, 6218 Unity Avenue North, suggested that the sanitary sewer lines in his area need replacing. Ms. Spector will refer this matter to the project manager. Don Eliason, 5313 Boulder Lane expressed concerns over storm drainage in his area. Mr. p g Brink will look into this matter. Ted Fritz 4819 Howe o Lane was not in support of the proposed project. Sharon Kephart, 5130 65th Avenue North, asked about getting enough notice by the contractor to vacate a driveway or street area. Ms. Spector asked that anyone with special needs contact the Engineering Department to apprise them of the situation. Ruth Defer, 6342 Unity Avenue North, asked if replacement of the water service lines would increase water pressure in her home. Ms. Spector responded that the project may improve water pressure in the main but that internal plumbing in the home may also be an inhibiting factor. Duane D khuizen 5124 Winchester Lane, inquired if there is an increase in crime during this q g type of project. Ms. Spector said there was no information from past projects indicating any increase in crime during construction. Jim Lang e w Lane , g through 3 Howe asked if the storm sewer line n�nnin would 521 g h his property be replaced; Mr. Brink said no. Mike Limberis, 6412 Perry Avenue North, asked about more street lights on Perry Avenue. Mr. Brink will look into this matter. 2/24/97 -6- DRAFT • Thomas Stumm, 5219 Howe Lane, asked if the City replaces dug up property stakes. Ms. Spector said they are replaced as best as possible. A motion by Councilmember Carmody and seconded by Councilmember Hilstrom to close the public hearing passed unanimously. Councilmember Carmody noted the strong support for the proposed improvement project, as indicated by previous area meetings of the Orchard Lane west neighborhood. RESOLUTION NO. 97 -38 Member Carmody introduced the following resolution and moved its adoption; RESOLUTION ORDERING IMPROVEMENTS AND AUTHORIZING PREPARATION OF PLANS AND SPECIFICATIONS, IMPROVEMENT PROJECT NOS. 1997 -01, 02, AND 03, ORCHARD LANE WEST, STREET, STORM DRAINAGE, AND UTILITY IMPROVEMENTS The motion for the adoption of the foregoing resolution was duly seconded by member Hilstrom and passed unanimously. • PLANNING COMMISSION APPLICATION NO. 97003 SUBMITTED BY SUNLITE PROPERTIES The applicant, Sunlite Properties III, is seeking an amendment to the Planned Unit Development approval granted to this same applicant under Planning Commission Application No. 96002 on March 25, 1996. The new proposal is for a 73,903 sq. ft. office /industrial building on the 6.25 acre site located west of Parkway Circle, north of the Hilton Hotel The previously approved Planned Unit Development for this same applicant was for a 69,778 sq. ft. office /industrial building on this same site in March, 1996. Prior to that, the City Council had granted site and building plan approval to General Litho Services, Inc., for an 80,000 sq. ft. office /industrial building in March, 1995. The current application is a new, but very similar, plan for the development of this property. The plan, in addition to providing for a somewhat larger facility, would shift the building easterly approximately 25 feet and would provide access and parking around the entire building. The other significant alteration would be along the south side of the building where loading docks would be provided for each of the tenant spaces rather than the centralized loading spaces comprehended under the 1996 approval. This matter was considered by the Planning Commission at its February 12, 1997, meeting and was recommended for approval with several conditions. • 2/24/97 -7- DRAFT Councilmember Hilstrom inquired if tax increment was being used in the project. Mr. • McCauley responded by saying yes, with pay -as- you -go soils correction. However, the developer will repay the cost of soil corrections through taxes on this property. The property, through tax increment, will have a net cost to the developer competitive with land without soil problems. The only tax increment use is to correct the soils so that the property can be developed. Councilmember Carmody asked if the watershed problem had been resolved; Mr. McCauley said yes. A motion was made by Councilmember Carmody to approve Planning Commission Application No. 97003 submitted by Sunlite Properties subject to the conditions as recommended by the Planning Commission: 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 building permits. 3. A 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 insure the completion of site improvements. 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. An underground irrigation system 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 submit an as-built survey of the properly, improvements, and utility service lines prior to the release of the performance guarantee. 10. The property owner shall enter into an easement and agreement for maintenance and • 2/24/97 -8- DRAFT • inspection of utility and storm drainage systems prior to the issuance of permits. 11. The applicant shall provide appropriate erosion and sediment control devices on the site during construction as approved by the Engineering Department. 12. The following additional financial guarantees will be deposited with the City Engineer by the applicant: A. A $2,500 cash surety as required by the Wetland Conservation Act. B. A $5,000 cash surety to insure completion of required wetland monitoring. 13. Ponding areas required as part of the storm drainage plan shall be protected by an approved easement. The easement document shall be executed and filed with Hennepin County. 14. The 20 parking stalls indicated on the north side shall be dedicated as off -site accessory parking for the sole use of the adjoining property to the north. Said declaration shall be filed with the title to the properties prior to the issuance of permits. 15. All work performed and materials used for construction of utilities shall conform to the City of Brooklyn Center's current standard specifications and details. • 16. An ordinance amendment vacating a portion of the drainage and utility easement on this property affected by the proposed building expansion shall be accomplished prior to the issuance of building permits for this project. The motion was seconded by Councilmember Lasman and passed unanimously. N ORDINANCE VACATING DRAINAGE AND UTILITY EASEMENTS IN TRACT A. REGISTERED LAND SURVEY NUMBER 1572 (SUNLITE PROPERTIES This property is located along Parkway Circle in the commercial/industrial area bounded by Shingle Creek Parkway, Freeway Boulevard, and Shingle Creek. As part of the site plan for Sunlite Properties, it will be necessary to vacate two existing drainage and utility easements and to establish new easements to accommodate the site plan as well as requirements of the City and Shingle Creek Watershed Commission. A motion was made by Councilmember Carmody to approve the first reading of this ordinance and set March 24, 1997, for the public hearing and second reading. The motion was seconded by Councilmember Lasman and passed unanimously. COUNCIL CONSIDERATION ITEMS • 2/24/97 -9- DRAFT HERITAGE CENTER OPEN HOUSE • City. Manager McCauley explained the concept of holding a community open house at the Heritage Center on Sunday, June 22, 1997. The Heritage Center staff, the Brooklyn Historical Society, and the Earle Brown Days Committee are in support of this community open house to showcase the facility and its potential for many different types of uses. In conjunction with this open house, non - profit, community -based, non - political organizations would be asked to join in showcasing both the facility and the community. This opportunity would allow community residents the opportunity to tour and explore the facility in an atmosphere that would also include social and entertainment value for them. Councilmember Peppe inquired about the possible ways for promoting the Heritage Center. Mr. McCauley said that anyone considering retreats, conferences, banquets, meetings, etc., for their group or activity would have the opportunity to go through the facility. Publication would be done in newsletters and other sources. Mayor Kragness noted that the public should take advantage of this excellent opportunity to see such a fine facility. Councilmember Hilstrom stated that the City should reimburse the Heritage Center for staff time and other costs involved. Mr. McCauley remarked that staff time would be minimal, only for some setup and cleanup. Costs could be split, perhaps. He further stated that any advertising for the open house would result in increased business opportunities for the Heritage . Center. Councilmembers Peppe and Carmody expressed agreement in the idea of splitting the costs with the Heritage Center. Mr. McCauley suggested the Council authorize the tracking of marginal costs in order to split the costs of the open house between the City's general fund budget and the Heritage Center's. budget. Councilmember Lasman asked if the marketing of this open house could "piggyback" the advertising announcements done by the Earle Brown Days Committee. Mr. McCauley said yes; the Committee was willing to cooperate. A motion was made by Councilmember Carmody to proceed with the idea of holding an open house at the Heritage Center on Sunday, June 22, 1997. The motion was seconded by Councilmember Lasman and passed unanimously. DISCUSSION OF PAWN SHOPS City Manager McCauley responded to several inquiries regarding zoning issues and pawn shops from the last Council meeting. He suggested that the Planning Commission might look at pursuing various options, such as establishing greater distance limitations between pawn shops • 2/24/97 -10- D RAFT • and certain types of uses, and possible separation requirements between pawn shops. Also, the zoning issue of limiting the distance of pawn shops from residential areas could be addressed by the Planning Commission. A motion was made by Councilmember Hilstrom to bring this matter to the Planning Commission for their recommendation. The motion was seconded by Councilmember Peppe and passed unanimously. AN ORDINANCE GRANTING TO NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION ITS SUCCESSORS AND ASSIGNS, PERMISSION TO CONSTRUCT OPERATE REPAIR AND MAINTAIN IN THE CITY OF BROOKLYN CENTER MINNESOTA AN ELECTRIC DISTRIBUTION SYSTEM AND TRANSMISSION LINES. INCLUDING NECESSARY POLES LINES FIXTURES AND APPURTENANCES FOR THE FURNISHING OF ELECTRIC ENERGY TO THE CITY ITS INHABITANTS AND OTHERS, AND TO USE THE PUBLIC WAYS AND PUBLIC GROUNDS OF THE CITY FOR SUCH PURPOSES City Manager McCauley explained that this item represents the renewal of NSP's franchise agreement with the City, and was tabled from the February 10, 1997, Council meeting. III However, since the City and NSP have not agreed to all issues in this franchise agreement, Mr. McCauley asked that this matter be tabled again. A motion was made by Y Councilmember Carmody to table this item until a future Council meeting. The motion was seconded by Councilmember Hilstrom and passed unanimously. RESOLUTION APPROVING LEASE AGREEMENT BETWEEN THE CITY AND SPRINT T R T S SPECTRUM FOR HE ITING OF PERSONAL WIRELESS COMMUNICATIONS FACILITIES AT WATER TOWER NO. 1 City Manager McCauley explained that a few months ago the Council approved a policy and a model lease relating to the potential lease of space on water towers for use by personal wireless communications facilities. This was in response to the growing number of players in P �' g p Y the PCS (personal communications systems) area of cellular and digital communications. Staff had reached an agreement with SBA, Inc., which is acting as an agent for Sprint Spectrum, a digital PCS provider, for the lease of space on Water Tower No. 1(France and 69th Avenues) and space on that parcel of land for the siting of its associated electronic equipment. This would represent the first such lease of City facilities for this purpose. The lease is based upon the model lease, with a few changes negotiated between SBA and the City Attorney and staff. The change was to provide one additional five -year renewal to a potential of a 20 -year lease and an increase in the base rent from $12,000 a year to $14,500 a year. The proposed lease adequately provides for the protection of the water tower and its 2/24/97 -11- DRAFT operation, and does not, for those areas where the City has authority to regulate, result in a • health or safety risk to the community. The FCC has regulatory authority over areas such as interference with other communications, concerns over possible health risk associated with the technology, and many areas related to operations. The lease agreement covers the areas of primary concerns: lease payment, aesthetics, protection of the structure and operations, maintenance, safety and liability, and termination. City Attorney LeFevere stated that several minor modifications which would not alter the essential terms of the lease agreement may be necessary but would be approved by the City Manager and City Attorney. RESOLUTION NO. 97-39 Member Carmody introduced the following resolution and moved its adoption: RESOLUTION APPROVING LEASE AGREEMENT BETWEEN THE CITY AND SPRINT SPECTRUM FOR THE SITING OF PERSONAL WIRELESS COMMUNICATIONS FACILITIES AT WATER TOWER NO. 1 The motion for the adoption of the foregoing resolution was duly seconded by member Hilstrom and passed unanimously. • Mayor Kragness requested a brief recess at 8:58 p.m. The Council meeting reconvened at 9:07 p.m. REQUEST FOR PRO -RATA REFUND OF LIQUOR LICENSE City Manager McCauley explained a request from the operator of the Rookies Bar for a pro -rata refund of his liquor license fee. The criteria established in the City Ordinance does not include termination of the lease by the lessor. Among the reasons for granting a pro -rata refund would include the death or disability of the license holder or physical destruction of the premises. City Attorney LeFevere indicated that it might be possible to consider additional reasons to allow for a pro -rata refund where the person has gone out of business. Councilmember Carmody asked if the Council would be considering these type of requests for pro -rata refunds on a case -by -case basis. Mr. McCauley responded that there may be a way to craft some language to deal with all such requests. He also said that a refund policy for liquor licences could be established similarly to that for refunds of building permits. Mr. McCauley detailed several reasons for and against changing the policy. Councilmember Hilstrom suggested that the City stay consistent with other communities in • 2/24/97 -12- DRAF • similar circumstances. Councilmember Peppe stated that no reimbursement should be granted in this case and no changes should be made to present liquor license policy. Mayor Kragness stated that the $11,000 liquor license fee paid, in this case, was too excessive for only two months of doing business. There will no longer be police expense associated with this property for this license. Councilmember Lasman asked how often these requests are received; Mr. McCauley said seldom. Ms. Lasman agreed with Councilmember Hilstrom that the City should look at how other communities handle these atypical situations. Councilmember Peppe again stated that the liquor license policy should be left the way it is. Councilmember Carmody aid that business y this was a small bus ss owner and had been paying taxes. A motion was made by Councilmember Carmody directing staff to explore what options the City has to refund in this case. The motion was seconded by Councilmember Lasman and passed on a vote of Councilmembers Carmody, Hilstrom, Lasman and Mayor Kragness voting aye; Councilmember Peppe voted nay. RESOLUTION AWARDING A CONTRACT FOR PROFESSIONAL SE VI ES IMPROVEMENT PROJECT NO 1995 -03, SHINGLE CREEK REGIONAL POND PROJECT, PHASE 1 City Manager McCauley explained that the consulting firm of SEH, Inc., had completed a feasibility report and Environmental Impact Worksheet in 1996 to provide groundwork for the construction of the Shingle Creek Regional Pond. The proposed pond construction project has been discussed and contemplated by both the Cities of Minneapolis and Brooklyn Center for some time. Construction of this project merits considerable value, need, and advantages for both cities. Due to the large costs of the project, and the limited amount of funding available, the project was essentially stalled in 1996. However, it is feasible and recommended that portions of the project be completed in a progressive or phased manner as funding becomes available. In addition to the regional pond to be constructed in Minneapolis, the project would also include the routing (piping) of storm water from the Brookdale Mall property to the existing ponds within Centerbrook Golf Course. The feasibility report completed by SEH also included proposed design revisions and upgrades to these existing ponds to provide primary treatment to the stone water runoff from Brookdale and the surrounding commercial and residential areas. Runoff would then be directed from Centerbrook ponds to the regional pond in Minneapolis for further treatment prior to discharging into Shingle Creek. • 2/24/97 -13- DRAFT Because completion of the `Brooklyn Center" portion of the project could be time consuming • due to the need to secure permits and install the crossing of T.H. 100, and potential "fast tracking" of a project at Brookdale on short notice, it seems appropriate that the City begin preparations for completing this phase of the project. Because SEH has completed all previous drainage and feasibility studies, preliminary design work, and environmental assessments, it is appropriate that SEH be further retained to provide design services to complete this portion of the project, named as "Phase 1." It is anticipated that construction could begin as soon as fall of 1997. Councilmember Hilstrom asked about ongoing discussions with Brookdale. Mr. McCauley stated that plan drawings for redevelopment of Brookdale may be available in March. Ms. Hilstrom asked if the golf course would experience flooding. Mr. McCauley said this shouldn't be a problem. Ms. Hilstrom asked that the City put this matter off until agreement has been reached with the City of Minneapolis and with Brookdale. Councilmember Hilstrom asked if there would be time to implement Phase 1 after the City knows Brookdale's plan. Mayor Kragness stated it seemed all parties were waiting for any othef party to take the first step at this point. She said the City has to do this ponding project and should go ahead. Councilmember Hilstrom asked what commitment Minneapolis has made to this project. Ms. Spector stated Minneapolis has started some street reconstruction in anticipation of this project. The Mayor of Minneapolis is on record as saying this ponding project is a high priority. • Councilmembers Peppe and Lasman stated this project should not stop now and the City needs to support Brookdale and any redevelopment. Councilmember Hilstrom stated she was committed to Brookdale and wanted to move forward but a financial commitment by the City at this point was premature. RESOLUTION NO. 97-40 Member Carmody introduced the followin g P resolution and moved its adoption: RESOLUTION AWARDING A CONTRACT FOR PROFESSIONAL SERVICES, IMPROVEMENT PROJECT NO. 1995 -03, SHINGLE CREEK REGIONAL POND PROJECT, PHASE 1 The motion for the adoption of the foregoing resolution was duly seconded by member Peppe and passed on a vote of Councilmembers Carmody, Lasman, Peppe, and Mayor Kragness voting aye; Councilmember Hilstrom voted nay. i • 2/24/97 -14- DRA HERITAGF FFSTIV:\L DISCI'SSION t Duane Ostlund, President of Marquette Bank Brookdale and volunteer Chairperson of Heritage Festival. requested $600 from the City of Brooklyn Center for financial support of Heritage Festival. After some discussion. Council consensus was that this "last- minute" request ma merit consideration but that the Council believed it was in an awkward position since there was no information presented in order to help the Council make a decision. They also did not want to set a precedent for other groups to flood the Council with requests. Mavor Kragness suggested using funds from undesignated civic money already in the budget. She believed Council support of the Heritage Festival was important. y A motion was made by Councilmember Carmody to table this matter to the next Council meeting. The motion was seconded by Councilmember Peppe and passed on a vote of Councilmembers Carmody, Hilstrom, and Peppe voting ave; Councilmember Lasman and Mayor Kragness voted nay. RESOLUTION ANfENDNG THE 1996 E _ER AT, FUND BUDGET TO i�CREASE .APPROPRIATIONS FOR V ARIOL OPER_.TT�i F '�iDS • City Manager McCauley explained that adjustments were necessary so that no department exceeds its appropriation in the 1996 General Fund Budget. Councilmember Hilstrom did not disagree with these adjustments but wanted to go on record regarding the C - ` Charter Commission being over its buds g i ,et 500 for le,al costs n 1996. Ms. Hilstrom wanted the Charter Co mrrusston to p resent any request in the future for over - budget expenditures to the. Council for approval. Councilmember Carmody expressed agreement with this idea. Mayor Kragness stated she had been a part of the Charter Commission in the past, t and the Commission didn't always use the allotted S 1,600 budget each year but wasn't given "cred' t for amounts not used. ,. RESOLUTION NO 97 -41 Member Carmody introduced the following resolution and moved its adoption: RESOLUTION AMENI)NG THE 1996 GENERAL FUND BUDGET TO INCREASE APPROPRIATIONS FOR VARIOUS OPERATING FUNDS The motion forth the adoption p n of the fore0 ` omg resolution was duly seconded by member Lasman and passed unanimously. 2!24/97 -15- DRAFT RESOLUTION CREATING A POLICE DRUG FORFEITURE FU\L;p TgANSFF RiN r MONEYS ERQTA= GENERAL FUND AND AUTHORIZrNG AUTHORIZING THE APPROPRIATION . IN 1997 OF AMOITNTS UNSPENT IN 1996 Councilmember Peppe requested clarification on this issue. City Manager McCauley explained this is a cleaner treatment of monies collected in one year for drug forfeiture and not spent until the next year. Councilmember Hilstrom left the Council table at 10:04 p.m. RESOLUTION NO. 97-42 Member Peppe introduced the following lowin resolution and moved its adoption: option: RESOLUTION CREATING A POLICE DRUG FORFEITURE FUND, TRANSFERRING MONEYS FROM THE GENERAL FUND, AND AUTHORIZING THE APPROPRIATION IN 1997 OF AMOUNTS UNSPENT IN 1996 The motion for the adoption of the foregoing resolution was duly seconded by member Carmody and passed unanimously; Councilmember Hilstrom was absent. ADJOURNMENT • A motion by Councilmember Carmody and seconded by Councilmember Peppe to adjourn the meeting at 10:06 p.m. passed unanimously; Councilmember Hilstrom was absent. City Clerk Mayor Recorded and transcribed by: LeAnn Larson • 2/24/97 -16- �6 ) Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION AUTHORIZING VIDEO DISPLAY TERMINAL EYEWEAR PURCHASE POLICY WHEREAS, the City Council, on October 21, 1991, authorized a Video Display Terminal Eyewear Purchase Policy; and WHEREAS, such policy approved payment of fifty percent of an employee's special eyewear package for video display terminal eyewear; and WHEREAS, the policy that was proposed and approved by the City Council in 1991 referenced one optical provider; and WHEREAS, the purpose of reimbursement is to encourage employees to purchase video display terminal eyewear where warranted; and WHEREAS, it may be more cost effective to use various providers of eyewear. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the City Manager be and hereby is authorized to adopt and promulgate from time to time policies relating to the reimbursement of employees for up to fifty percent of a video display terminal eyewear purchase. BE IT FURTHER RESOLVED that the policy approved in 1991 be and hereby is superseded by this resolution authorizing the City Manager to promulgate such policies as the City Manager may feel are in the best interests of the City providing for up to fifty percent of the cost reimbursement to employees for the purchase of video display terminal eyewear protection. 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 • City of Brooklyn Center Memorandum TO: Michael J. McCauley, City Manager FROM: Kelli Wick, HR/Purchasing ician /Deputy City Clerk DATE: March 4, 1997 SUBJECT: Video Display Terminal (VDT) Eyewear Purchase Policy Attached is an updated Video Display Terminal (VDT) Eyewear Purchase Policy. Everything has basically remained the same except the City is no longer using Benson Optical as our source for purchasing the glasses. Benson Optical has been bought out by another company and they are quite expensive. Employees can get a better rate going through their insurance provider. The City will continue to reimburse 50 % of the cost of the VDT eyewear. I also stated in the policy, that in the future, the City Manager would have the authority to • update, change or eliminate this policy keeping in line with all other city policies. kw City of Brooklyn Center Video Display Terminal (VDT) Eyewear Purchase Policy Purpose To prevent or reduce problems related to eye fatigue and eye strain due to prolonged use of microcomputers or terminals. Eligible Employees All full and part time regular employees who regularly use microcomputers or terminals. Procedure All eligible employees (listed above) are encouraged to get periodic eye examinations. They are also encouraged to get eye exams if they experience problems such as sore neck and shoulder muscles. Employees should consider getting an eye exam if they habitual problems with eye fatigue, burning eye or difficulty in focusing after prolonged work on a microcomputer or terminal. The City will reimburse the employee for fifty percent of the a VDT eyewear purchase. Employees who choose to participate must submit a receipt for eyewear to the Administration department. The cost of the eye exam is the responsibility of the employee. In the future, the City Manager will have the authority to change, update or eliminate this policy. City Manager Date • Revised 3/97 • In response to Councilmember Pedlar's question as to whether the Employee Safety Committee had considered a gradual step -down implementation plan, the Personnel Coordinator indicated employees have known the policy has been in the making for quite some time now and have had time to prepare themselves. Councilmember Scott felt the City needed to take a leading role in creating a more healthy environment in which to work and expressed support for the policy. The Mayor raised a discussion on employee options for cessation assistance. The City Manager indicated information on smoking cessation programs will be made available to all tobacco users. There was a motion by Councilmember Scott and seconded by Councilmember Rosene to approve the tobacco free policy and implementation funding with an effective date of February 1, 1992. The motion passed unanimously. VIDEO DISPLAY TERMINAL T) D EYEWEAR PURCHASE POLICY (V The Personnel Coordinator presented and reviewed a video display terminal (VDT) eyewear purchase policy for Council's consideration. This policy also is at the recommendation of the Committee. The purpose is to prevent and reduce problems related to eye fatigue ee Safety Comrru P Employ S ty PmP P i d use of microcomputers or terminals. The policy proposes the City and eye strain due to prolonged P y P g P pay for fifty percent of an employee's special eyewear package which now ranges from $60 to $120. About 42 employees would be eligible for the program. The maximum cost to the City is • approximately $2,500. Although it is an ongoing expense, the majority would be incurred during the first year of the program. The Council briefly discussed implementation of this policy and noted an added benefit should be a reduction in the number of workers compensation claims of eye problems incurred with the use of video display terminals. There was a motion by Councilmember Scott and seconded by Councilmember Rosene to approve the video display terminal eyewear purchase policy and funding in the 1992 budget with an effective date of January 1, 1992. The motion passed unanimously. AMERICAN DISABILITIES ACT In response to Councilmember Councilmember Pedlar's request for an update on consideration of the American presently working A the City Manager said staff has studied and is pres y g Disabilities Act (AD A), ty g obtaining the standards. STREET MAINTENANCE AND IMPROVEMENT POLICIES The City Manager presented proposed street maintenance and improvement policies and advised the Council he and the Director of Public Works had been working on a plan to get some of the City streets rebuilt. • 10/21/91 - P - SUBJECT: VIDEO DISPLkY TERMINAL. (VDT) EYEWEAR PURCHASE POLICY EFFECTIVE DATE: 2 Nom" l/ S AUTHORIZATION BY CITY MANi AGER PURSUANT TO CITY COUNCIL ACTION: DATE: November 7, 1991 PURPOSE The purpose of this policy is to prevent or reduce problems related to eye fatigue and eye strain due to prolonged use of microcomputers or terminals. PROCEDURE A. Employees who regularly work with microcomputers or terminals may participate in the Video Display Terminal (VDT) Eyewear Purchase Program. Employees who regularly use microcomputers or terminals are encouraged to get periodic eye examinations. They are also encouraged to get eye exams if they experience problems such as sore neck and shoulder muscles. Employees should consider getting an eye exam if they have habitual problems with eye fatigue, burning eye or difficulty in focusing after prolonged work on a microcomputer or terminal. B. The City of Brooklyn Center will participate. in the Benson Optical Industrial /Occupational Products Division, Occupational Package Program. An employee will be able to purchase video display terminal eyewear under the Benson Video Display Terminal (VDT) Eyewear Purchase, Improved Package program. The package allows for purchase of single vision lenses or progressive lenses with Ultraviolet protective coating, anti - reflective coating, and standard package or improved package frames for a set package price. The package price is substantially less than it would be if purchased outside the program. C. The City will pay for fifty percent of the package. The employee will pay Benson s y to be required ' directly for the remainder of the purchase q price and for any allowable options to the package. D. Employees who choose to participate in the program described in Sections B and C must get a Benson Optical Authorization Form from the MIS coordinator or the personnel coordinator. The form must be signed and dated by either the MIS coordinator or personnel coordinator. Upon receipt of the signed form, the employee can go to any Metro Area Benson Optical to purchase the eyewear. The employee needs to bring a prescription from an optometrist or ophthalmologist or they can have an in store eye examination. The cost of the examination is the responsibility of the employee. SCOPE: This policy applies to all full -time and part -time employees described in Section A. �V • MEMORANDUM DATE: March 19, 1997 TO: Michael McCauley, City Manager FROM: David Peterson, Public Works Superintendent SUBJECT: Resolution Accepting Bid and Authorizing the Purchase of One Golf Course Fairway Mower An appropriation in the amount of $30,200.00 was approved in the 1997 central garage capital outlay budget for the purchase of one golf course fairway mower. The following bids were received for the purchase of the fairway mower. Some companies submitted more than one bid representing different models with different combinations of equipment. The following bids do not meet the written specification for reels of 6.5 inch minimum diameter. That minimum diameter is extremely important as smaller reels result in substantially increased maintenance time and effort. • Company Name Price MTI Distributing Company $32,381.33 MTI Distributing Company $25,038.15 North Star Turf, Inc. $23,348.00 The following bids meet the written specifications, Company Name Price MTI Distributing Company $36,870.30 North Star Turf, Inc. $28,749.67 Cushman Motor Company, Inc. $27,547.29 We recommend accepting the bid of Cushman Motor Company, Inc for the purchase of one golf course fairway mower be approved. • adoption: Member introduced the following resolution and moved its RESOLUTION NO. RESOLUTION ACCEPTING BID AND AUTHORIZING THE PURCHASE OF ONE GOLF COURSE FAIRWAY MOWER WHEREAS, an appropriation of $30,200.00 was approved in the 1997 central garage capital outlay budget for the purchase on one golf course fairway mower; and WHEREAS, the following bids which meet written specifications were received; and Company Price MTI Distributing Company $36,870.30 North Star Turf, Inc. $28,749.67 Cushman Motor Company, $27,547.29 WHEREAS, the following bids which do not meet written specifications were also received; and Company Price p X MTI Distributing Company $32,381.33 MTI Distributing Company $25,038.15 North Star Turf $23,348.00 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that: 1. The bids of MTI Distributing Company and North Star Turf which do not meet the written specifications are hereby rejected. 2. The bid of Cushman Motor Company, Inc. In the amount of $27,547.29 is hereby accepted, and the purchase of one golf course fairway mower is hereby approved. Date Mayor • ATTEST: City Clerk • RESOLUTION NO. The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. • MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Sharon Knutson, City Clerk DATE: March 19, 1997 SUBJECT: License to Utilize Explosives Permits for The Howe Company Section 35 -413.2 of the Brooklyn Center City Ordinances requires that the utilization of explosives must be licensed by the City Council. The following items are recommended conditions for the utilization and discharge of explosives at The Howe Company facility, 4821 Xerxes Avenue North, Brooklyn Center, Minnesota. 1. The permit is issued to The Howe Company, 4821 Xerxes Avenue North, Brooklyn Center, and is nontransferable. • 2. The Howe Company shall continue to use a two- component compound, kinestik, or a similar two- component compound. 3. The Howe Company shall comply with all applicable federal, state, and local legislation governing the transportation, storage, handling, and detonation of explosives. 4. The Howe Company shall notify the Chief of Police in advance of all blasting operations. 5. City employees shall have the right to inspect upon reasonable notice given to The Howe Company. 6. Authorization to discharge explosives in the City of Brooklyn Center granted under this permit shall expire March 27, 1998. 3 City of Brooklyn Center Agreat place to start. Agreat place to stay. -, APPLICATION FOR LICENSE Cit of Brooklyn Center ¢ ` 6301 g C�.- I n le reek Parkw #� s f Brooklyn Center Minnesota 55430 a: 569-3300 - x HONORABLE CITY - COUNCIL, § � QA �3: � - x c WR �+'41e "s.4 .s �a !.° Y. �£' ..� ��'�,k i+�$ '� *"'� r x X"y , d e s ,x•d- t-� "';..,." 'S°' ..'f # � � ,. CROPMATE COMPANY i f x , "NO.Sn DBA: UBE HOWE COMPANY x •. '� { `'4821 RXFS A VENUE NORTH °A►� A1,` FEE 0:00 ". .� x r TELEPHONE 535 =1030 `�� enclose the sum' of � , Zero Dollars and 00 ets .� Cn r to the City of Brooklyn Center as re wired by the Ordinances of, said City s and have, ; complied with RQPMATE 'All the requirements o said Ordinances necessary for obtauiing;th�s License:' w.F /. � O 1 ♦ gb , 1, `i -�3' � .# � ; g _� p w 1 xz 3a� �r4. - k ' _ COMPANY DBA THE HOWE mg ��"� hereby make application to the following hcense�� . License Type• ' UTII;IZE.EXPLOS1ft9W,ITH CONDITIONS . � { CompanyzTHE,CROPMA7'E COMPANY:DBATHEHOWE COMP loca luu ;, �..,�4821 DES VENLIKNORTH RLicense Period 03 / 28 l1997,� tlirough /1998: RIIA a 3 .. �r subject to�all cone bons and rovisioj of said Ordinances a� � x� x �F .R. N' Pursuant.:to Munesota State Statute 270.72gTax Clearance; your bess,taxi entificatio �.� enti a . numb" required for approval 'of you license. 4 The Crty on file theta olio_ - umber 'fog` our business. ax y� F3 esota T Identification Noy. r �, .s R^'3: ' K• _ ` an PP * F s �� A P °':' 3� u ar ecYS �t< r t r ' m 3a r. w + r" 'sFS . �x 3 f#ra* $ fps #� f: a a .rya'S'..'r`tw a 'K kyav ;'...` 5' �C,. 2u�' r+ Yua" s wr � w a '.E ]Kf .�.' '# � � • � ;t � w. S` r 1 J 3 t City of Brooklyn Center Conditions for Howe Section 35 -413.2 of the Brooklyn Center City Ordinances requires that the utilization of explosives must be licensed by the City Council. The following items are recommended conditions for the utilization and discharge of explosives at The Howe Company facility, 4821 Xerxes Avenue North, Brooklyn Center, Minnesota. 1. The permit is issued to The Howe Company, 4821 Xerxes Avenue North, Brooklyn Center, and is nontransferable. 2. The Howe Company shall continue to use a two- component compound, kinestik, or a similar two- component compound. 3. The Howe Company shall comply with all applicable federal, state, and local legislation governing the transportation, storage, handling, and detonation of explosives. 4. The Howe Company shall notify the Chief of Police in advance of all blasting operations. 5. City employees shall have the right to inspect upon reasonable notice given to The Howe Company. 6. A Center ranted under this Authorization to discharge explosives in the City of Brooklyn C t r g permit shall expire March 27, 1998. • AMENDED MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Sharon Knutson, City Clerk DATE: March 21, 1997 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 and submitted appropriate applications and paid proper fees. Licenses to be approved by the City Council on March 24, 1997: • MECHANICAL SYSTEMS Delmar Furnace Exchange, Inc. 4080 83rd Avenue North, Brooklyn Park RENTAL DWELLINGS Initial: Chu and Kim La 4110 Lakebreeze Avenue North Renewal: Shingle Creek Tower 6221 Shingle Creek Parkway Bartholmew Dabrowski 5001 Ewing Avenue North Bobby and Sally Robson 1107 57th Avenue North SIGN HANGER Graphic House, Inc. 9204 Packer Drive, lvk WI TOBACCO RELATED PRODUCTS TGI Friday's 2590 Freeway Boulevard • 7a! • MEMORANDUM DATE: March 19, 1997 TO: Michael McCauley, City Manager FROM: Scott Brink, City Engineer SUBJECT: An Ordinance Vacating Drainage and Utility Easements in Tract A, Registered Land Survey Number 1572 (Sunlite Properties) The above referenced property is located along Parkway Circle, in the commercial/industrial area bounded by Shingle Creek Parkway, Freeway Boulevard and Shingle Creek (Exhibit A). A site plan approval for this parcel is also scheduled for Council consideration at the February 24, 1997 Council meeting. As part of approval of the site plan, it will be necessary to vacate two existing drainage and utility easements, and to establish new easements to accommodate the site plan, as well as requirements of the City and Shingle Creek Watershed Commission. Exhibit A provides a more specific view of the existing and proposed easements. • On February 24, 1997, the City Council conducted a first reading for the vacation of the easements, and a notice of public hearing was published in the City's official newspaper. Private utilities have been contacted, and no objections have been received. It is recommended that the City Council approve the attached ordinance providing for the vacation of said easements. • CITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the 24th day of March, 1997, at 7 p.m. or as soon thereafter as the matter may be heard at the City Hall, 6301 Shingle Creek Parkway, to consider vacating drainage and utility easements located in Tract A, Registered Land Survey Number 1572. 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 VACATING DRAINAGE AND UTILITY EASEMENTS IN TRACT A. REGISTERED LAND SURVEY NUMBER 1572 (SUNLIT PROPERTIES) THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS FOLLOWS: Section 1. The following easements in Tract A, Registered Land Survey Number 1572, described as follows are hereby vacated: • 1. A drainage and utility asement, as filed in the Office of the Registrar of tY g Titles, Hennepin County, Minnesota, as Document No. 1542291, more specifically described as follows: A drainage and utility easement over the northerly 48 feet of Tract D, Registered Land Survey No. 1564, Section 35, Township 119 North, Range 21 West, in Brooklyn Center, Hennepin County, Minnesota, lying southerly of the following described line: Beginning at the most westerly corner of Tract D, thence North 70 degrees 24 minutes 52 seconds East, assumed bearing, a distance of 596.35 feet along the northerly line of said Tract D and there terminating, the side lines of said easement lengthened or shortened to terminate along the lot lines of said Tract D. 2. A drainage and utility easement, as filed in the Office of the Registrar of Titles, Hennepin County, Minnesota, as Document No. 1520298, more specifically described as follows: A drainage and utility easement 40 feet wide, in Tract C, Registered Land Survey • No. 1537, Section 35, Township 119 North, Range 21 West, in Brooklyn Center, Hennepin County, Minnesota, the centerline of which is described as follows: r Beginning at a point on the westerly line of said Tract C a distance of 200.0 feet southeasterly of the most westerly corner of said Tract C, said westerly line has an assumed bearing of North 47 degrees, 08 minutes, 12 seconds West; thence North 43 degrees, 06 minutes, 53 seconds East, a distance of 353.91 feet, and there terminating. Together with a drainage and utility easement 20.00 feet wide, the centerline of which is described as follows: Commencing at a point on the westerly line of said Tract C, a distance of 200.0 feet southeasterly of the most westerly corner of said tract C, said westerly line has an assumed bearing of North 47 degrees, 08 minutes, 12 seconds west; thence North 43 degrees, 06 minutes, 53 seconds East a distance of 353.91 feet to the point of beginning of said 20.00 foot easement; thence North 70 degrees, 24 minutes, 52 seconds East to the most westerly line of Tract B, Registered Land Survey No. 1537 and there terminating. The side lines of said 20.00 foot easement are prolonged or shortened to terminate on the westerly line of said Tract B and easterly end of the 40.00 foot easement. Section 2. Adoption of this ordinance shall be subject to the execution of an agreement between the City of Brooklyn Center and the property owner of said parcels, providing for the grant of utility and drainage easements to replace said vacated easements. Section 3. This ordinance shall be effective after adoption and thirty days following its legal publication. Adopted this day of , 1997. Mayor ATTEST: City Clerk Date of Publication Effective Date (Brackets indicate matter to be deleted, underline indicates new matter.) • adoption: Member introduced the following resolution and moved its RESOLUTION NO. RESOLUTION EXPRESSING RECOGNITION AND APPRECIATION OF ERIC MARQUARDT FOR HIS DEDICATED PUBLIC SERVICE ON THE CHARTER COMMISSION WHEREAS, Eric Marquardt has served on the Brooklyn Center Charter Commission from August 31, 1995, to December 1, 1996; and WHEREAS, his public service and civic effort for the betterment of the community merit the gratitude of the citizens of Brooklyn Center; and WHEREAS, it is highly appropriate that his service to the community should be recognized and expressed. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Brooklyn Center that the dedicated public service of Eric Marquardt is hereby recognized and appreciated by the City of Brooklyn Center. 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: March 18, 1997 TO: Michael McCauley, City Manager FROM: Jim Glasoe, Acting Recreation Director- SUBJECT: Resolution Acknowledging Donations from the Brooklyn Center Lions Club for Recreation Programs The Brooklyn Center Lions Club has presented to the City a donation of three thousand dollars ($3,000) and has designated that it be used for our annual Sunday in Central Park activities. In addition, the Lions have donated three hundred dollars ($300) designating that it be used for outdoor conservation programs. One such program already identified which would benefit from this donation is the construction of blue bird houses for several City parks by youth participating in after ch 1 r s oo programming. • • • its adoption: Member introduced the following resolution and moved RESOLUTION NO. RESOLUTION ACKNOWLEDGING DONATIONS FROM THE BROOKLYN CENTER LIONS CLUB FOR RECREATION PROGRAMS WHEREAS, the Brooklyn Center Lions Club has presented to the City a donation of three thousand dollars ($3,000) and has designated that it be used for our annual Sunday in Central Park activities; and WHEREAS, the Brooklyn Center Lions Club has presented to the City a donation of three hundred dollars ($300) and has designated that it be used for outdoor conservation programs; and WHEREAS, the City Council is appreciative of the donations and commends the Brooklyn Center Lions Club for its civic efforts. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota: 1. Acknowledges the donations with gratitude. 2. Appropriates the donations to the designated recreation programs. 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. OG • PROCLAMATION DECLARING APRIL 13 THROUGH 19, 1997, AS VOLUNTEER RECOGNITION WEEK WHEREAS, volunteers enrich the lives of many through their tremendous concern, commitment, and generosity; and WHEREAS, in this time of limited government resources, volunteer involvement in education, health care human services and P rotection of the environment is more critical than ever before; and WHEREAS, Minnesota's two million volunteers are generously stepping forward to reduce poverty, hunger, homelessness, violence, and other serious social problems; and WHEREAS, through this special commitment of citizen initiative, we are helping our communities to solve problems and make a difference in the lives of many; and WHEREAS, volunteers are truly building stronger communities and they deserve our special recognition for their energy and enthusiasm in strengthening neighborhoods and communities throughout Minnesota. NOW, THEREFORE, 1, AS MAYOR OF THE CITY OF BROOKLYN CENTER, State of Minnesota, do hereby proclaim April 13 through 19, 1997, to be Volunteer Recognition Week in the City of Brooklyn Center and urge all citizens to observe this period by recognizing those who contribute their time, talent, and energy in their neighborhoods and communities, and by renewing a personal commitment to volunteerism. Date Mayor Attest: City Clerk • • r r 1 1 1 1" Volulinnteers 1 Minnesota Volunteer Recognition Week April 13 - 19 7 1997 ��/T //, MOCVS Department of Administration *eeeeoa 1. O t/ �— Y c J 117 Universit Aveune, St. Paul, MN 55155 -2200 ° hk Citirenehip and Volunuer Services TTY: 612.297.4022 or 800.657.3783 e-mail: admin.mocvs @state.mn.us e °t . � Telephone: 612.296.4731 or 800.234.6687 Fax: 612 National Trends in Volunteerism • INDEPENDENT SECTOR'S 1996 study, "Giving and Volunteering volunteers in the United States," reveals that giving and volunteering is slowly rising. Nationwide, volunteers donated 20.3 billion hours in 1995, more than a billion hours higher than in 1993. This marks the first real increase in giving since 1989. • Americans volunteering formally in 1995 gave 15.7 billion hours, IM6 a 5% increase since 1991. Those who volunteered informally NE W, (neighbor helping neighbor) gave 4.6 billion hours in 1995, a 2% increase from 1993. • Generally, as the percentage of household income contributed to charities increases, so does the incidence of volunteering. • 62% of adult respondents indicated they had once belonged to a youth group or something comparable. Of those respondents, 61 % volunteered. Of those who were not active in youth groups (37 %), 29% volunteered. • 71 % of respondents reported membership in religious congregations. Among those who were members, 55% volunteered and among nonmembers, 34% volunteered. • 41% of respondents reported membership in other organizations such as civic association, service clubs, alumni groups or professional organizations. Three out of four reported volunteering. Amon nonmembers, 32% P g g volunteered. • Source: "Giving and Volunteering in the United States, " 1996 Edition, conducted by the Gallup Organization and analyzed by INDEPENDENT SECTOR, Washington D. C. Trends on Corporate Volunteerism • 92% of corporate executives surveyed encouraged their employees to become involved in community service. • 77% of companies surveyed agreed that volunteer programs benefit corporate strategic goals. • 50% of the respondents have made community service a part of their company's mission statement. • More than 50% of the participants acknowledged connection between corporate volunteer programs and profitability. Even more feel stronger agreement to factors that affect profitability (morale, teamwork, productivity). Source: "Corporate Volunteer Programs: Benefits to Business, " sponsored by The Conference Board and The Points of Light Foundation, Report No. 1029. Trends on Youth and Service- Learning • Youth who have been through service - learning experiences say that it is likely that they will continue to participate in volunteer activities over the next five years. • 74 % of youth in service - learning will change what they do to protect the environment and 71% will actively try to keep the environment safe. • 72% will volunteer to tutor children, visit the elderly, serve as a mentor or coach. Source: 1994 survey data conducted by Search Institute, in cooperation with the National Youth Leadership Council as part of a the National Service - Learning Initiative. -over- 12//96 kl.c.vrw.fact.she Fact Sheet on Volunteerism National Adult Volunteer Statistics Midwest Adult Volunteer Statistics Source: Giving and Volunteering in the United States, 1996 Source: Giving and Volunteering in the United States, 1996 Edition, INDEPENDENT SECTOR - 1995 Gallup Survey Edition, INDEPENDENT SECTOR - 1995 Gallup Survey • Percent of population volunteering 49% • Percentage of population volunteering 60% • Estimated number of volunteers • Estimated number of volunteers 18 years of age or older 93 million 18 years of age or older in Minnesota 2 million • Average weekly hours served per volunteer 4.2 hrs/wk • Average weekly hours served per volunteer 3.8 hrs /wk • Average annual hours per volunteer 218.4 hrs /yr • Estimated annual dollar value of adult • Estimated annual hours volunteered 20.3 billion/hrs volunteers in Minnesota $4.9 billion • Annual dollar value (formal volunteering) $201 billion • Per hour dollar value of volunteering • Per hour dollar value of volunteering (based on average non - agricultural wage, (based on average non - agricultural wage, plus 12% benefits estimate) $12.84 per hr plus 12% benefits estimate) $12.84 per hr National Youth Volunteer Statistics Midwest Youth Volunteer Statistics Source: Volunteering and Giving Among American Teenagers 12 Source: Volunteering and Giving Among American Teenagers 12 to 17 Years of Age, 1992 Edition, INDEPENDENT SECTOR - 1991 to 17 Years of Age, 1992 Edition, INDEPENDENT SECTOR - 1991 Gallup Survey Gallup Survey • Percentage of youth volunteering 61% • Percentage of youth volunteering 71% • Estimated number of volunteers • Estimated number of volunteers 12 -17 years of age 12.4 million 12 -17 years of age in Minnesota 249 thousand • Average weekly hours served per volunteer 3.2 hrs /wk • Average weekly hours served per volunteer 3.2 hrs/wk • Annual hours volunteered 2.1 billion • Estimated dollar value (formal volunteering) $ 7.0 billion • Volunteered five or more hours per week 17% Source: Department of Children, Families and Learning, 1996 • Schools requiring community service hours • MN school based service - learning volunteers: for graduation 8% - Elementary school -age volunteers 80 thousand • Schools that offer courses that require - Middle school -age & junior high community service as part of the course 21% school -age volunteers 52 thousand • Students who volunteer at schools that - Senior high school -age volunteers 41 thousand encourage community service 75% • MN school districts that offer service- learning opportunities 82% • MN school districts that offer credit for youth community service 45% Who Volunteers Source: Giving and Volunteering in the United States, 1996 Midwest and National Volunteer Service Edition, INDEPENDENT SECTOR - 1995 Gallup Survey • 93 Million Americans over age 18 volunteer Percentage or Respondents Volunteering • 49% Of adult Americans volunteer • 45% Of males e4 • 52% Of females s7 se so Eo 70 _ • 45% Of people between 65 -74 years 60 sa • 50% Of persons employed full time 51 se 49 • 58% Of persons employed part -time 50 45 Y4 • 46% Of not employed 240 ;30 o. Motivations for Givine and Volunteerine 20 • 67% Were active in student government 10 • 65% Have volunteered before • 64% Parents volunteered when they were young 0 • 61% Had belonged to a youth group 1987 1989 1991 1993 1995 • 59% Active in religious group Source: 'Giving and Volunteering in th e United States'. 199E Edition • 56% Wanted to make a significant change in society • 56% Saw someone they admired helping another Midwest National • 53% Were helped by others in the past • 53% Saw someone in their family helping others + MOCVS Department of Administration Y ° ° .+�t• /(O �t j� 117 University Avenue St. Paul, MN 55155 -2200 m c v/ TTY: 612.297.4022 or 800.657.3783 e-mail: admin.mocvs@state.mn.us o ° OrC'E••naivsedvetesteerservko Telephone: 612.296.4731 or 800.234.6687 Fax: 612.282.2411 MEMORANDUM • TO: Michael J. McCauley, City Manager FROM: Charlie Hansen, Finance Director C H DATE: March 18, 1997 SUBJECT: Discussion of Utility Billing Collection Procedures Over the last several years, the staff has developed a concern that our current set of utility billing collection proceedures may not serve our citizens in the best possible way. The cornerstone of our current process is the threat that water service will be shut off if the bill isn't paid. This has several undesirable consequences. Residents in financial difficulty make promises they can't keep in order to postpone a shut off. The staff becomes skeptical of the residents due to the experience of seeing payment promises broken. Angry and potentially dangerous confrontations are set up when the maintenance crew is sent out to actually shut water off. This set of experiences promotes an atmosphere that is the opposite of a customer service orientation. A moratorium was laced on winter water shut offs at the direction of the City Council. P tY As part of the moratorium, the City Council requested an additional study on possible approaches to delinquent water bills. Since the imposition of the moratorium, The Finance Division has surveyed our neighboring cities. Thirteen cities responded. Only Blaine, Brooklyn Park, and Columbia Heights shut off water for delinquent utility bills. The remaining ten cities assessed the delinquent utility bills as part of the real estate taxes. Relying upon assessing to property taxes will lengthen our collection cycle. Whatever its faults, the water shut off usually esults in the bill being aid. Man people now wait until Y gP YP P the crew is at their door before the a the bill. With an assessment procedure, they will Yr Y wait until they receive notice that the balance is being assessed, or until it shows up on their property tax statement. The water fund has a large enough cash balance so that this won't cause cash flow problems and fees and interest can be charged on the assessment to largely replace any lost investment income. The maintenance crews will save time since they will no longer be sent out to do shut offs. However, the Finance Division staff will probably spend more time on assessments then they currently spend on shut offs. At the end of February 1996, our accounts receivable balance was $311,515.77. At the end of February 1997, it had increased by $33,069.74 to $344,585.51. Of this 10.6% • increase, 3.4 % can be attributed to the rate increases that went into effect on January 1, 1997. The other 7.2 %, or $22,462.45 can be assumed to result from the shut off • 1997. The other 7.2 %, or $22,462.45 can be assumed to result from the shut off moratorium. This has a relatively minor impact on the cash resources of the water fund. The options before the City Council would be to reinstate the previous water shut -off policy with a winter moratorium as currently in place or to consider an assessment policy whereby unpaid water bills would be certified and paid as part of the real estate taxes. The advantages to the water shut -off are as indicated that repayment tends to occur more frequently. The disadvantage is that it consumes a great deal of staff time as well as confrontational issues for the water utility crew and the process of physically shutting off water and checking that it is not turned back on. The advantage to an assessment procedure is that we do not have to deal with issues of persons being without water service because of unpaid bills, and while there is a negative involvement of Finance Division time to certify bills, send notices, and actually have the matter certified to the County Auditor, the confrontational aspects and the use of utility crew time is eliminated. An additional issue for the City Council is whether it wishes to do as several of our surrounding cities do, and have water billing paid by the building owner rather than by each individual tenant. This would have the advantages of streamlining our billing process, reducing the number of duplicate billings, reducing the number of customer name changes, and related delinquency problems. Time savings from • billing only the owner would help to offset the time required to assess delinquent bills. • SURVEY OF SURROUNDING CITIES REGARDING DELINQUENT UTILITY BILLS • CITY SHUTS OFF WATER ASSESS TO TAXES Blaine X Brooklyn Park X Columbia Heights X Coon Rapids X Cottage Grove X Crystal X Fridley X Golden Valley X Maple Grove X Minnetonka X New Brighton X New Hope X Robbinsdale X • • MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Charlie Hansen, Finance Director C H DATE: March 18, 1997 SUBJECT: Resolution Approving an Amended Investment Policy The City's first investment policy was written in 1990 and the City Council approved it by resolution 90 -105. Events of recent years have made this policy somewhat out of date. I have written a new draft e GFOA . olic based largely on th G model investment policy. P Y g Y P Y This draft policy differs from the GFOA model because I have substituted language from Minnesota Statutes Chapter 118A and the Brooklyn Center City Charter in place of more generic language. I have also inserted some of my own language to customize the policy to the needs and circumstances of the City of Brooklyn Center. • The major parts which I wrote, as opposed to parts from the GFOA model, the state statutes, or the City Charter, include the following: Page 2, paragraph 4. Stable Earnings - This was added to reflect the City's practice of budgeting for investment income. �P ara paragraph g Page 3 h 4. Training - This was added based on a recommendation in a 1996 g report by the Commissioner of Finance to the Legislature which may become a requirement. Page 5, subparagraph g. Independent Audit - This is something the auditors are already doing, but I felt it was useful to highlight it in the policy. Page 6, paragraph 2. Securities Not Purchased - Some of these securities are allowed under the G.F.O.A. model policy or state statutes, but I feel they aren't necessary or appropriate for the City's portfolio. Also this statement provides guidance when new types of securities appear on the market. Page 7, paragraph 4. Maximum Maturities - This paragraph expands upon the provisions of the G.F.O.A. model policy and provides guidance for selecting securities to meet • the objectives of liquidity and yield. Page 7, section VI. Reporting - This was added to set minimum reporting requirements which will enable the City Manager to monitor the investment program and determine its compliance with the policy. The draft policy has been reviewed by the Brooklyn Center Financial Commission at their meetings of February 13, 1997 and March 6, 1997. They voted unanimously to recommend the draft policy to the City Council. Copies of the Financial Commission meeting minutes are attached. Overall, the policy sets parameters of acceptable investment practices which protect the City from risky or inappropriate investments while assuring the staff that their actions will be supported by the City as long as the actions conform to the policy. • • 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 (612) 337 -9300 telephone (612) 337 -9310 fax e -mail: attys@kennedy- graven.com CHARTERED CHARLF.s L. LEFEVERE Attorney at Law Direct Dial (612) 337 -9215 March 24, 1997 Mr. Michael McCauley City Manager City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center MN 55430 RE: City Investment Policy Dear Mike: The City Council has on for consideration at its meeting of March 24, 1997, a proposed investment policy. Section III, paragraph 3 entitled "DELEGATION OF AUTHORITY" assigns responsibility for the operation of the investment program to the City Treasurer. However, City Charter Section 6.04 provides that the City Treasurer is subordinate to the City Manager and that the City Treasurer has such duties in connection with the receipt, disbursement, and custody of public funds as may be assigned by the City Manager. Therefore, it seems to me that the delegation of responsibility for operation of the program is inconsistent with the City Charter. To remedy this problem, I would suggest that the second sentence of that paragraph be amended to read: "Responsibility for the operation of the investment program may be delegated by the City Manager to the City Treasurer..." I would also recommend that the final sentence in the paragraph be amended to read: "The City Treasurer shall be responsible to the City Manager for all transactions undertaken..." Very truly yours, Charles L. LeFevere CLL:lh BR291 4 • adoption: Member introduced the following resolution and moved its RESOLUTION NO. RESOLUTION APPROVING AN AMENDED INVESTMENT POLICY WHEREAS, the safe and effective investment of money is essential to the sound fiscal management of the City; and WHEREAS, the existence of a written investment police is a necessary tool to protect the City nd staff and to guide management in the investment of City money; and ty � g tY WHEREAS, the City has had a written investment policy since 1990; and WHEREAS, a new investment policy based upon recommendations of the Government Finance Officers Association, Minnesota State Statutes, the City Charter, and the Financial Commission has been written. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that the attached Investment Policy is hereby adopted. 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 oted against gauist the same: whereupon said resolution was declared duly passed and adopted. . CITY OF BROOKLYN CENTER INVESTMENT POLICY I. SCOPE This investment policy applies to all of the investment activities of the City, except for the Employee Deferred Compensation Agency Fund and the proceeds of refunding bond issues where the investment of such roceeds is specifically governed p p y g by the bond escrow agreement. H. OBJECTIVE 1. SAFETY Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and • interest rate risk. A. Credit Risk Credit risk is the risk of loss due to failure of the security issuer or backer. Credit risk may be mitigated by: • Limiting investments to the safest types of securities; and • Pre - qualifying the financial institution, broker /dealer, intermediaries, and advisors with which an entity will do business; and • Diversifying the investment portfolio so that potential losses on individual securities will be minimiz B. Interest Rate Risk Interest rate risk in the risk that the market value of securities in the portfolio will fall due to changes in general interest rate. Interest rate risk may be mitigated by: • Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and • By investing operating funds primarily in shorter -term securities. • 1 2. LIQUIDITY The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated p demands. Furthermore, since all possible cash demands cannot be anticipated, the portfolio should contain a large component of securities with active secondary or resale markets. 3. YIELD The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of least importance compared to the safety and liquidity objectives described above. The core of investments are limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall be held to maturity with the following exceptions: 1. Liquidity needs of the portfolio require that the security be sold. 2. A security of declining credit could be sold early to minimis loss of principal. 4. STABLE EARNINGS Since investment earnings are included in the budgeted revenues of the City, it is important that these earnings be stable and predicable through at least the next budget cycle. This points to the need to purchase securities of various maturities so that at least half of the portfolio will remain for two or more years with known interest rates. III. STANDARDS OF CARE 1. PRUDENCE The standard of prudence to be used by investment officials shall be the prudent person standard and shall be applied in the context of managing an overall portfolio. Investment officials acting in accordance with this policy and exercising due • 2 diligence shall be relieved of personal responsibility for an individual security's • credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and the purchase and sale of securities are carried out in accordance with the terms of this policy. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. 2. ETHICS AND CONFLICTS OF INTEREST Officials involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Officials shall disclose any material interests in financial institutions with which they conduct business. The shall further disclose an personal financial/ Y Y p investment positions that could be related to the performance of the investment portfolio. Officials shall refrain from undertaking personal investment transactions • with the same individual with who business is conducted on behalf of the City. 3. DELEGATION OF AUTHORITY Authority to manage the investment program is derived from Minnesota State Statutes, Chapter 118A and Brooklyn Center City Charter Chapter 6, Section 6.04 and is granted to the City Manager, City Treasurer, and Assistant City Treasurer. Responsibility for the operation of the investment program may be delegated by the City Manager to the City Treasurer, who shall carry out the program consistent with this policy. No person may engage in an investment transaction except as provided under the terms of this policy. The City Treasurer shall be responsible to the City Manager for all transactions undertaken and shall establish a system of controls to regulate the execution of all investment transactions. 4. TRAINING To ensure the competence of its investment officials, the City shall provide the opportunity for the officials to attend such investment training programs as are available and suitable. 3 IV. SAFEKEEPING AND CUSTODY • 1. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS A resolution shall be submitted to the City Council at least annually to designate depositories of city funds. This shall include institutions and dealer/brokers where accounts are maintained for banking services, purchase and sale of investment securities, and the custody of securities. The City Treasurer shall provide to each broker or institution, a written statement of investment restrictions which shall include a provision that all future investments are to be made in accordance with Minnesota Statutes governing the investment of public funds, prior to completing an initial transaction, and annually thereafter. An annual review of the depositories shall be conducted by the City Treasurer. Requests for Proposals for banking services and custodian for investment securities shall be conducted on a periodic basis as defined in the Policy and Procedure on Requests for Proposals for Financial Professional Services. 2. INTERNAL CONTROLS • The City Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and the valuation of costs and benefits requires estimates and judgements by management. Internal controls shall include the following: a. Control of Collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer. b. Custodial safekeeping Securities purchased from any bank or dealer shall be placed with an independent third parry for custodial safekeeping or held in an account with the Federal Reserve Bank of Minneapolis. C. Avoidance of physical delivery securities Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss • 4 • or destruction. The potential for fraud and loss increases with physical delivered securities. d. Clear delegation of authority to subordinate staff members Officials must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure. e. Written confirmation of telephone transactions for investments and wire transfers. Due to the potential for errors and improprieties arising from telephone transactions, all transactions should be supported by written communications and approved by the appropriate official. Written communications may be via fax on letterhead. Institutions and broker/ dealers shall be provided with a list of authorized signers. f. Development of a wire transfer agreement with institutions and broker/ dealers. This agreement should outline g o lme the various controls security provisions, and delineate responsibilities of each parry making and receiving wire transfers. • g. Independent Audit The City's independent auditors shall conduct a thorough review of the City's investment portfolio and transactions as part of their engagement. 3. DELIVERY VERSES PAYMENT All trades where applicable will be executed by delivery verse payment (DVP). This ensures that securities are deposited in the eligible financial institution prior to the release of funds. Securities will be held by a third party custodian. V. SUITABLE AND AUTHORIZED INVESTMENTS 1, INVESTMENT TYPES Consistent with Minnesota Statutes Chapter 118A, the following investments will be permitted by this policy: a. Securities that are the direct obligations or are guaranteed or insured issues of the United States, its agencies, its instrumentalities, or organizations • 5 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 � p y in o 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. 2. SECURITIES NOT PURCHASED 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, shall not be purchased. Securities which represent the principal or interest payments stripped off from an original issue security shall not be purchased. • 6 0 3. COLLATERALIZATION To the extent that deposits in bank accounts, certificates of deposit, and repurchase agreements exceed the available federal deposit insurance, collateral shall be furnished by the financial institution in accordance with Minnesota Statutes Chapter 118A 4. MAXIMUM MATURITIES When purchasing investments, the Treasurer will attempt to match the maturity to future cash flow requirements. The city will not invest in securities maturing more than ten years from the date of purchase. No more than ten percent of the city's portfolio at any time shall be invested in securities with maturities of more than five years. VI. REPORTING 1. The City Treasurer shall prepare a monthly investment report to the City Manager which shall include a succinct management summary; a list of significant g rY g transactions such as purchases, sales, and maturities of investments; a list of investments by type, a list of investments by maturity, a calculation of average yield . on the portfolio, and a statement of interest earned. This report will be prepared in a manner which will allow the City Manager to ascertain whether investment activities during the month have conformed to the investment policy. 2. A statement of the market value of the portfolio shall be issued at least annually. This will review the investment portfolio in terms of value and subsequent price volatility. 7 • DRAFT MINUTES OF THE PROCEEDINGS OF THE FINANCIAL COMMISSION OF THE CITY OF BROOKLYN CENTER MARCH 6, 1997 CITY HALL, CONFERENCE ROOM B TOUR OF POLICE STATION A tour of the Police Station was led by Police Chief Scott Kline for interested members at 6:30 P.M. CALL TO ORDER Chair Donn Escher called the meeting to order at 7:07 P.M. in Conference Room B. ROLL CALL Present at roll call were Chair Donn Escher, Commissioners: Ned Storla, Jay Hruska, Ron Christensen, Larry Peterson, Jerry Blamey and Michael Weidner. Also present were Council Member Robert Peppe, City Manager Michael McCauley, and Finance Director Charlie Hansen. Approval of Minutes A motion was made by Commissioner Ned Storla to approve the minutes of the February 13, 1997 • meeting, as amended. Commissioner Michael Weidner seconded the motion and all members voted in its favor except for Commissioner Ron Christensen who abstained from voting. Approval of the Agenda A motion was made by Commissioner Jerry Blamey to approve the agenda for the meeting. Commissioner Jay Hruska seconded the motion and all members voted in its favor. Update on Fire & Police building needs planning Capital Improvements Fund Expenditure Policy Mike McCauley reviewed the schedule for open houses at the Police and Fire stations. The existing concept for building improvements seeks to minimize the total cost while tieing the Civic Center complex together in a better fashion. There is some consideration of expanding the plan to include a new Police Station to better meet long term needs. A stand alone Police Station at a remote site incurs additional costs for phone system, copiers, MIS support, building maintenance, etc., which now are shared with the Civic Center. Changing to a stand alone Police Station would increase costs by several million dollars.. This pushes the total bond issue up to the range of $7,000,000. A typical house would see a tax increase of $5.00 a month from the bond issue. However this is a 23 % increase. The City Council has decided that solutions to the Police, Fire and City Hall needs must be presented to the voters together. Review of proposed Capital mprovements Fund & Reserve Fund Expenditure Polite Mike McCauley discussed a draft Capital Improvements Fund Expenditure Policy and handed out a draft Reserve Fund Expenditure Policy. As presented at previous meetings, the proposal is to • split the existing Capital Improvements Fund into two funds, a reserve fund with a minimum fund balance to meet catastrophic emergencies, and an improvement fund with a larger, unreserved • fund balance which could be used to meet city needs. The draft Capital Improvements Fund Expenditure Policy contained new language defining the permitted use of funds. The draft Reserve Fund Expenditure Policy was the same as was handed out at the January 9, 1997 meeting. Charlie Hansen discussed a memo which presented a staff study of the possible catastrophic events which could lead to using the money in the reserve fund. Extensive discussion of the policies and uses of funds followed. It was decided to hold this topic over to the April meeting. Amended Investment Policy This draft policy had been presented at the February 13th meeting and held over so that commissioners could have additional time to read and consider the policy. Questions were asked about who makes decisions to buy investments and if there should be review of those decisions. It was answered that the Finance Director makes investment decisions and that all transactions are reported to the City Manager monthly for review. Discussion followed about the various safe guards that are in place, both in this policy and in state law, to protect the city. Commissioner Ned Storla moved to recommend the Investment Policy, as amended at the February 13th meeting, to the City Council. Commissioner Larry Peterson seconded the motion and all members voted in its favor. Next Meeting The next meeting will be Thursday, April 3, 1997 at 7:00 P.M. • ADJOURNMENT Commissioner Jay Hruska moved to adjourn the meeting at 9:00 P.M. Commissioner Ned Storla seconded the motion and all members voted in its favor. • i • MINUTES OF THE PROCEEDINGS OF THE FINANCIAL COMMISSION OF THE CITY OF BROOKLYN CENTER FEBRUARY 13, 1997 AS AMENDED CITY HALL, CONFERENCE ROOM B CALL TO ORDER Chair Donn Escher called the meeting to order at 7:00 P.M. in Conference Room B. ROLL CALL Present at roll call were Chair Donn Escher, Commissioners: Ned Storla, Jay Hruska, Larry Peterson, Jerry Blarney and Michael Weidner. Also present were Council Liaison Debra Hilstrom, City Manager Michael McCauley, and Finance Director Charlie Hansen. Commissioner Ron Christensen was absent and excused. Approval of Minutes A motion was made by Commissioner Jay Hruska to approve the minutes of the January 9, 1997 meeting. Commissioner Ned Storla seconded the motion and all members voted in its favor except for Commissioners Larry Peterson and Michael Weidner who abstained from voting. Approval of the Agenda • A motion was made by Commissioner Larry Peterson to approve the agenda for the meeting. Commissioner Jay Hruska seconded the motion and all members voted in its favor. Fire & Police Building and Capital improvements Fund Expenditure Policy These items were discussed at the January 9, 1997 meeting and further discussion on them was deferred to the March 6, 1997 meeting. Proposed Accounts Receivable Policy Charlie Hansen presented a draft of this policy. Most of the procedures described are what the staff is already following with the major exception of granting the City Manager the authority to write off uncollectible accounts receivable up to amounts defined in the policy. This is a change from the practice of annually submitting a resolution to the City Council to authorize the write off of uncollectible accounts receivable. Debra Hilstrom expressed her desire that items not requiring City Council action should not be on agendas, but also stated that items on agendas, having importance, be discussed for the public's benefit. There was discussion, but no consensus regarding the appropriate amounts the City Manager should have authority to write off. Jay Hruska suggested that there should be some review by either the Financial Commission or the City Council of the amounts written off by the City Manager. • • Proposed NSF Check Policy Charlie Hansen presented a draft of this policy. This policy is very similar to the accounts receivable policy in that most of the procedures described are what the staff is already following with the major exception of granting the City Manager the authority to write off uncollectible NSF checks up to amounts defined in the policy. This is a change from the practice of annually submitting a resolution to the City Council to authorize the write off of uncollectible NSF checks. A motion was made by L Peterson and seconded b Commissioner Jerry Y �'Y Y n'Y Blamey to recommend the accounts receivable policy and the NSF check policy as amended to the City Council. Mike McCauley commented that he may wish to lower the amounts that he would be authorized to write off before the policies are submitted to the City Council. All members voted in favor of the motion. Amended Investment Policy Charlie Hansen presented the existing investment policy and a proposed draft of a new policy. The existing policy was approved by the City Council in 1990 and amended in 1994 to exclude the purchase of derivative securities. The proposed policy is based on a model policy from the Government Finance Officers Association with various modifications to fit Brooklyn Center's situation. Extensive discussion followed. It was decided that the paragraph on training be made a more positive statement by saying the City shall provide training instead of the City should provide training. The policy was held over to the March meeting to allow more time for the • Commissioners to consider and discuss the issues. Next Meeting The next meeting will be Thursday, March 6, 1997 at 7:00 P.M. ADJOURNMENT Commissioner Jay Hruska moved to adjourn the meeting at 8:07 P.M. Commissioner Jerry Blamey seconded the motion and all members voted in its favor. Interested members proceeded on a tour of the Fire Stations led by Fire Chief Ron Boman. • MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Charlie Hansen, Finance Director C M DATE: March 18, 1997 SUBJECT: Resolution Awarding Contracts for City Insurance Policies and Contracts for the Insurance Agent and Insurance Consultant for 1997 Attached is a resolution which will authorize renewal of the following insurance contracts: POLICY: INSURANCE COMPANY: Comprehensive Property and Casualty Insurance L.M.C.I.T. Worker's Compensation Insurance L.M.C.I.T. • Boiler and Machinery Insurance L.M.C.I.T. Accident Plan for Volunteers L.M.C.I.T. Open Meeting Law Defense L.M.C.I.T. Liquor Liability Insurance The St. Paul Fire & Marine Premiums for liability insurance have decreased 13 % from 1996, but our exposure measured by expenditures is up slightly. Rates have decreased slightly from 1996 for property insurance while increasing for boiler & machinery insurance. Total premiums are up because staff reviewed the values we had buildings insured for and increased the values. Auto insurance increase was due to higher rates. Other categories within Property & Casualty rose or fell due to changes in the insurance rates. Worker's compensation premiums have been reduced by about 13 % for 1997. This follows a 25 % reduction for 1996. The main reasons the LMCIT is able to provide this reduction are savings from State of Minnesota reform legislation of 1992 & 1995 and the success of city safety programs. The City of Brooklyn Center is also receiving a 10% reduction in premiums because we have enrolled in a managed care program sponsored by the League. Liquor liability insurance is up due to higher estimated sales at the Liquor Stores. All insurance premiums are within or close to the amounts budgeted for them. The attached • spreadsheet provides more detail on the City's insurance premiums. • It should be noted that the City has received dividends back from the LMCIT in each of the last ten years. We expect to receive one again in 1997, but the LMCIT has told us to expect it to be smaller because they are charging lower up front premiums. The resolution also will renew annual contracts with the City's insurance agent and risk management consultant. In the past it has been asked if the City staff could do this without the help of out side consultants. The Finance Director is the primary risk manager on staff. He is able to spend less than 10% of his time on this area. Due to this limit on time, the fact that he isn't a trained risk management professional, and that he isn't exposed to events & trends in other cities and the larger insurance industry, it isn't possible for him to cover risk management without help from consultants. Since the City acquires most of its insurance coverage from the L.M.C.I.T., it might seem that we had no need for an insurance agent. However, not all of our policies are with the L.M.C.I.T. In some cases, they don't provide a coverage we need, in others they aren't the best or lowest cost provider. An agent is needed to help us determine the best source of coverage and then prepare and submit applications for that coverage. The City has an agreement with BHK &R Insurance Agency for agent services on a flat "fee for services" basis rather then paying a commission based on premiums, which is the more common practice in the insurance industry. Such commissions vary from 2% up to 10% of premiums. If • the city didn't have the flat fee agreement, the commissions to the agent could exceed $20,000 a year. BHK &R Insurance Agency has agreed to extend its contract to January 1, 1998 with no increase in the fee. The fee was last increased in 1995 from $8,600 to $9,000. It was at least four years before that since the previous increase in BHK &R's fee. The City also retains an insurance consultant. There is some overlap in the things done by the consultant and the agent. This is due to the fact that the flat fee contemplates the agent performing a certain set of duties, primarily related to applying for policies. Risk management is a larger endeavor than just insurance. The insurance consultant is an additional source of expertise used to help in areas such as loss prevention, analyzing levels of risk to retain in the city as opposed to transferring the risk via insurance, analyzing operations, and reviewing insurance applications to confirm that we completely listed all properties and activities which should be insured. Two recent initiatives of the consultant were to identify the option of managed care in our worker's compensation insurance policy which is saving us 10% of those premiums, and taking larger deductibles on worker's compensation, which saves several thousand dollars a year, depending on claims. The City's policy and procedure on requests for proposals for financial professional services calls for a request for proposals to be done in 1997 for the risk management consultant. Berkley Risk Services, Inc. (formerly American Risk Management, Inc's) services has also agreed to extend its contract to July 31, 1997 with no increase in the monthly fee, to allow us time to do the request for proposals. Their fee was last increased in 1995 from $5,340 per year to $5,616 per year. It • was two years before that since the previous increase in American Risk's fee. CITY OF BROOKLYN CENTER INSURANCE CONTRACTS FOR 1997 Percent 1997 1996 Increase Increase COVERAGE Premium Premium (Decrease) - Decrease Comprehensive Municipal Property & Casualty General Liability $131,025 $150,844 ($19,819) - 13.14% Property & misc equipment 29,229 29,464 (235) -0.80% Inland Marine 3,918 3,833 85 2.22% Boiler & Machinery 5,907 5,013 894 17.83% Automobile Liability & Collision 31,126 29,426 1,700 5.78% Bonds 2,344 2,604 (260) -9.98% Money & Security 1,546 1,546 0 0.00% ------- - - - - -- ------- - - - - -- ----- - - - - -- ----- - - - - -- Total Property & Casualty 205,095 222,730 (17,635) -7.92% • Worker's Compensation 126,514 145,590 (19,076) - 13.10 % Accident Plan for Volunteers 2,175 2,175 0 0.00% Open Meeting Law Defense 1,965 2,263 (298) - 13.17% Liquor Liability 15,088 14,697 391 2.66% TOTAL $350,837 $387,455 ($36,618) -9.45% • insurance/renewal/awardins 3/14/97 • its .adoption: Member introduced the following resolution and moved RESOLUTION NO. RESOLUTION AWARDING CONTRACTS FOR CITY INSURANCE POLICIES AND CONTRACTS FOR THE INSURANCE AGENT AND INSURANCE CONSULTANT FOR 1997 WHEREAS, the Director of Finance and the City's Insurance Agent have negotiated annual renewal premiums for the City's comprehensive insurance coverage for the period from January 1, 1997 to January 1, 1998 and they are as follows: 1. Comprehensive Municipal Property and Casualty Insurance from the League of Minnesota Cities Insurance Trust (L.M.C.I.T.): Property $ 29,229 Inland Marine 3,918 Boiler & Machinery 5,907 General Liability 131,025 Automobile Liability 31,126 Crime 1,546 Bonds 2,344 ----- - - - - -- Total Annual Premium $205,095 2. Workers' Compensation Insurance from the L.M.C.I.T.: Total Annual Premium $126,514 3. Accident Plan for Volunteers from the L.M.C.I.T.: Total Annual Premium $ 2,175 4. Open Meeting Law Defense from the L.M.C.I.T.: Total Annual Premium $ 1,965 5. Liquor Liability Insurance from St. Paul Fire & Marine: Total Annual Premium $ 15,088 ; and I • • RESOLUTION NO. WHEREAS, Brandow Howard Kohler & Rosenbloom, Inc. (BHK &R) has been the City's insurance agent since January 1, 1990 on a fee - for - services basis, has provided good agent services to the City of Brooklyn Center, and wishes to extend the agreement for services or another year; and WHEREAS, Berkley Risk Services, Inc. has been retained as the City's insurance consultant since June of 1988 on a contract for services, has provided good consulting services to the City of Brooklyn Center, and wishes to extend the contract for consulting services. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center to: 1. Accept the negotiated insurance renewals and award the contracts as stated. 2. Designate the Brandow, Howard Kohler & Rosenbloom, Inc. (BHK &R) Agency as the agent of record for said insurance. 3. Renew the fee - for - services contract as City insurance agent with BHK &R for the • period of January 1, 1997 through December 31, 1997 at an annual fee of $9,000. 4. Renew the contract for consulting services with Berkley Risk Services, Inc. for the period of March 1, 1997 through July 31, 1997 at a Monthly rate of $468. 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. • g • MEMORANDUM DATE: March 19, 1997 TO: Michael McCauley, City Manager FROM: Diane Spector, Director of Public Services SUBJECT:. Resolution Establishing Improvement Project No. 1997 -14, Retrofit of Several Wells With ASDs for Energy Conservation At the conclusion of last year's Water Utility Energy Study and Audit, TKDA, our consultant, presented three recommendations for reducing energy costs. The first two, identifying accounts for which the City was being charged sales tax but which were still tax exempt and eliminating that taxation, and making procedural changes to reduce energy consumption, have been implemented. It is estimated that these changes could reduce energy expenditures by as much as $40,000 per year; the 1997 water utility budget assumes a more conservative $25,000 savings. • The third recommendation was the installation of adjustable speed drives (ASDs) on the motors of five of the wells, and a time of day clock/timer on a sixth well. Combined with additional procedural changes, it was estimated that this improvement could save $56,000 per year, a 40 percent reduction in electrical energy costs, or about an additional $16,000 per year over what has already been implemented. Staff has reviewed the results of the energy audit with NSP, and all parties are confident the estimated savings are achievable. Several other cities including St. Louis Park, South St. Paul, Bloomington, Minnetonka, Maple Grove, St. Anthony, and Inver Grove Heights have gone through this energy audit process with this particular consultant, and all have achieved very dramatic energy savings by implementing the recommendations. We recommend that the City consider implementing this third recommendation immediately, utilizing a special financing program made available through NSP. A number of years ago the Public Utilities Commission required NSP as a condition of one of its rate increase approvals to implement and fund energy conservation programs. Several of those programs have been aimed at government agencies, and range from small "bounties" paid for replacing lighting fixtures with more energy efficient fixtures to providing no -cost financing for energy- saving capital improvements such as this ASD recommendation. Through the NSP Local Government Energy Conservation Program, we could obtain no -cost financing for this improvement, which is estimated to cost about $210,000. NSP provides the capital up front for the improvement costs, and then the improvement is paid back over ten years • through future energy savings. The City's engineering consulting costs (including the $4,800 for the energy audit itself) are reimbursed, except for some types of construction supervision costs. • Thus, the only up -front expense to the City would be an estimated $5,000 for engineering costs not reimbursed under the Program. The following table shows how the improvement would be financed, and how the water utility would benefit from energy savings. This table assumes that energy costs would increase at a modest two percent each year, but does not build in any variation due to weather or other factors which might influence the amount of energy used for pumping per year. Table 1 Financial Impact of Proposed Improvement Cost to City Net Energy Savings Year Cost to NSP Estimated Energy (Loan payments (Benefit to City, reducing (Capital Outlay) Savings & engineering) utility operating costs) 1 $240,000 $56,000 $29,000* $27,000 2 51,200 24,000 27,200 3 58,260 24,000 34,260 4 59,400 24,000 35,400 • 5 60,600 24,000 36,600 6 61,800 24,000 37,800 7 63,000 24,000 39,000 8 64,260 24,000 40,260 9 65,500 24,000 41,500 10 66,800 24,000 42,800 11 -25, 68,100 0 68,100 each (increasing (increasing year each year) each year) * This includes the $24,000 loan payment plus the estimated $5,000 construction services engineering which is not covered under the NSP financing program. In summary, by utilizing this special financing and implementing additional procedural changes, the water utility could install these ASDs at minimal cost to the City (the estimated $5,000 construction engineering costs) and continue to enjoy at a minimum $25,000 in energy savings per year, increasing as rates increase. At the end of the ten year financing program, all the energy savings would accrue to the utility. Since the ASDs have an estimated useful life of 25 years, the City could enjoy an estimated 15 years of "full savings ". • As noted above, a number of other cities have gone through similar assessments, have made similar improvements, and have achieved savings more than adequate to repay the no -cost loan. There is very minimal risk to the city to implement such an improvement, and a considerable gain. Energy rates are a noncontrollable cost, so maximizing energy efficiency helps considerably in minimizing the impact of future energy rate increases which would otherwise be passed along directly to our water utility customers in the form of higher water rates. This improvement was not comprehended in the 1997 CIP and water utility budget and rate study, since at that time we had not completed our study of the feasibility of the proposed improvements. Had the improvement required a more substantial investment on the part of the City than an estimated $5,000 for certain types of construction engineering services, we would wait until 1998 to consider implementing this improvement through the regular budget process. However, since the improvement can be completed with minimal upfront cost to the City (which can be covered through our utility contingencies budget) and we can start reaping the increased energy savings immediately, we recommend the Council consider establishing this project for construction as soon as possible. Please note that of June, 1998 NSP will no longer accept applications for these loan funds. Should the Council desire going forward with this improvement, a resolution is attached which establishes the project and authorizes our consultant TKDA to apply on the City's behalf for participation in the loan program. On receiving acceptance by NSP of the Energy Study and • Audit as a feasibility report, such an improvement would proceed as any other project. We would obtain a quote for services from our consultant and execute a professional services agreement. The consultant would prepare plans and specifications which would subsequently be reviewed and approved by the Council, we would advertise for bids, and award a contract for the improvement to the lowest responsible bidder. The improvement would be done by contract with the City, and the City would own the improvements. • • Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ESTABLISHING IMPROVEMENT PROJECT NO. 1997 -14, RETROFIT OF SEVERAL WELLS WITH ASDs FOR ENERGY CONSERVATION WHEREAS, an Energy Study and Audit conducted for the City's water utility by the engineering consulting firm of TKDA and Associates, Inc., identified various capital improvements and procedural changes which could be implemented to reduce energy costs in the operation of the water utility; and WHEREAS, the City Engineer and utility staff have reviewed said study with NSP and have determined that the recommended capital improvements of retrofitting five wells with adjustable speed drives and one additional well with a time of day clock/timer are feasible and could result in significant energy savings; and WHEREAS, NSP operates a Local Government Energy Conservation Program to provide no -cost financing of capital improvements which result in substantial energy savings; and WHEREAS, said retrofit project would be eligible to be fully funded but for some minor consulting costs through a no cost loan from NSP to the water utility, to be repaid through future energy savings. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that: 1. Improvement Project No. 1997 -14, Retrofit of Several Wells With ASDs for Energy Conservation is hereby established. 2. The City's consultant, TKDA, is hereby authorized to prepare application materials for participation in the Local Government Energy Conservation Program, and the City Manager is hereby authorized to execute and submit to NSP said application materials. 3. Upon receipt of acknowledgment from NSP that the proposed improvement is feasible and eligible for financing through the Energy Conservation Program, staff is hereby authorized to negotiate a professional services contract for development of plans and specifications and construction services with TKDA for Council consideration. • Resolution No. 4. Costs associated with this project shall be funded by the Water Utility Fund. 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 a • WATER UTILITY ENERGY STUDY AND AUDIT FOR BROOKLYN CENTER, MINNESOTA SEPTEMBER, 1996 COMM. NO. 11148 -01 KDA TOLTZ, KING, DUVALL, ANDERSON AND ASSOCIATES, INCORPORATED ENGINEERS • ARCHITECTS • PLANNERS 1500 PIPER JAFFRAY PLAZA • 444 CEDAR STREET SAINT PAUL, MINNESOTA 55101-2140 PHONE:6121292 -4400 FAX:6121292 -0083 C • TOLTZ, KING, DUVALL, ANDERSON SAINT PAUL, MINNESOTA AND ASSOCIATES, INCORPORATED ENGINEERS - ARCHITECTS- PLANNERS SEPTEMBER, 1996 WATER UTILITY ENERGY STUDY AND AUDIT FOR BROOKLYN CENTER, MINNESOTA COMMISSION NO. 11148-01 I hereby certify that this Study and Audit was prepared by me or under my direct supervision and that I am a duly registered Professional Engineer under the laws of the State of Minnesota. Verne E. Ja sen, P.E. Registration No. 06988 • Comm. No. I • WATER UTILITY ENERGY STUDY AND AUDIT FOR BROOKLYN CENTER, MINNESOTA Table of Contents Paae Scope Introduction 1 Present Water System 2 Water Trends 3 Present Operating Requirements and Conditions 5 Operational Data 6 Partially- Closed Valves on Wells 9 Electric Rates and Costs 13 Outline of Proposed Operating Procedures 13 • Recommendation for Each Supply Well 15 Operating Plan 17 Electrical Demand and Cost Reduction 20 Water Utility Operating Cost Reduction 23 Recommended Energy Conservation Measures 23 Power Factor Correction 24 Lighting Retrofit 24 Measurement of Energy Savings 25 Audit Summary and Recommendations 25 Tables Table No. 1 2 Table No. 2 Water Consumption Based on Pumped Water 4 Table No. 3 Monthly Water Volume and Average Day Water Use Per Month 5 Table No. 4 Operating Data - 1994 7 Table No. 5 Operating Data - 1995 8 Table No. 6 New Op erations, Well No. 4 and No. 6 as Prima Supply 20 P � Pri PP Y Table No. 7 New Operations, Time of Day Operating Plan 21 -1- 11148 -01 WATER UTILITY ENERGY STUDY AND AUDIT FOR • BROOKLYN CENTER, MINNESOTA SCOPE The scope of the report is limited solely to the study of electrical rates as they relate to municipal water pumping and the most economical application of available rates, for pumping of potable water. Considerable emphasis has been given in this study to reducing the amount of electrical energy required and to lowering the amount of electrical demand placed on the electrical system, while meeting the water demands of the City. Equipment retrofit is recommended, utilizing funding available through the NSP Local Government Energy Conservation Program in order to minimize the electrical energy and demand requirements of the water system. Any changes in electrical rates, rate structures or use characteristics may invalidate all or part of this report. In the event of such a change, a review of this report is recommended. INTRODUCTION During July and August, 1996, TKDA staff conducted and completed an operational review of the past 24 months of water utility records and electrical billings in order to develop an operational plan for the City of Brooklyn Center which would reduce electrical demand and electrical usage. The City of Brooklyn Center is a community of approximately 28,500 people and is located in the northwestern section of the metropolitan area and is a fully developed first ring suburb of Minneapolis. Recent data indicates that a decrease in population of approximately 2,700 people has occurred in the recent ten -year period. The water system facilities are well maintained and operated by qualified licensed operators. Improvements have been added to water utility facilities as required to meet the current and future water demands. Further improvements are recommended in this report in order to provide the City with a more energy - efficient and cost - effective operation of the water utility. The NSP Local Government Energy Conservation Program allows cities the opportunity to receive funding for retrofit of government buildings and /or equipment as required to reduce energy use and operating costs. Each of the energy conservation measures (ECM) outlined in this report are part of an integral operating plan which will supply the water needs for the City of Brooklyn Center and utilize the minimum amount of electrical demand and electrical energy required to meet this water demand. The energy -1- 11148 -01 conservation measures outlined also add operating flexibility to the system and allows the water operators greater ability to meet changing seasonal water demands with significant reductions in both electrical demand and KWHs usage. PRESENT WATER SYSTEM The City of Brooklyn Center uses ground water from various wells as its source of supply for its customers. The City has nine wells which are used for supply. All wells pump directly to the three elevated storage tanks, and all wells draw water from the Jordan aquifer which is approximately 230 feet below the ground surface and is 80 feet to 90 feet thick. Water treatment is currently limited to the addition of chlorine, ammonia, hydrofluosilicic acid and zinc orthophosphate at each well. No iron or manganese removal is provided and well selection should consider the quality of raw water from each different well supply in order to minimize the amount of chemicals required to sequester the iron and manganese in the water supply. The well number, motor size, KW demand, design capacity, 1994 average operating capacity, 1995 average operating capacity and the two -year average KWHs required to • produce a million gallons of water are listed in Table No. 1. Table No. 1 Design 1994 1995 Two -year Well Motor KW Capacity Operat. Operat. Average No Size Demand GPM Capacity Capacity KWHs /MG 2 150 84 1,130 1,085 1,062 1,941 3 150 96 1,200 822 727 2,134 4 150 102 1,320 1,128 1,207 1,291 5 150 132 1,600 1,487 1,481 1,466 6 150 132 1,440 1,403 1,395 1,469 7 200 138 1,650 1,422 1,492 1,511 8 200 120 1,600 951 906 1,785 9 250 150 1,800 1,500 1,523 1,631 10 250 160 1,600 1,486 1,425 1,628 The Brooklyn Center water system is designed to serve the entire City with one pressure zone. The distribution system consists of watermains varying in size from 4 • inches to 30 inches in diameter. The larger distribution mains allow the transfer of larger volumes of water through the existing grid without noticeable head loss. Three small in -line booster pumps are utilized in the west central section of the City to enhance circulation of water in that area. -2- 11148 -01 The City has three elevated water storage tanks which have a combined storage • volume of 3.0 million gallons (MG). Tower 1 is located in the northwest section of the City, and has a capacity of 0.5 MG and an overflow elevation of 1,014.5. Tower 2 is located in the northeast section of the City, and has a capacity of 1.0 MG and an overflow elevation of 1,015.1. Tower 3 is located in the south central section of the City, has a capacity of 1.5 MG and an overflow elevation of 1,015.4. The Ten States Standards recommend that the water storage capacity of a system be equal to the average daily water consumption. The current 3.5 MG average daily water use exceeds the elevated storage capacity in the City of Brooklyn Center and additional storage would be desirable. The City's capital improvement program provides funding for the construction of additional water storage within the next ten year period. As the well supply system is currently designed to supply the elevated system at an elevation of 1,015 feet, the replacement of the existing 0.5 MG Tower No. 1 with a new 2.0 MG tower should be i considered as a desirable alternative for increasing water storage on the system. Increasing the elevated storage would be the preferable alternative to the addition of a ground storage reservoir in the City system. As a ground storage reservoir would require the re- design and replacement of all the well pumps and motors and the addition of a booster station to deliver water from the ground storage reservoir to the • elevated system. Double pumping of the City's water supply would also reduce overall pumping efficiency from the 75% - 80% range to the 56% - 64% range and thereby increase annual electrical costs by about 15 %. rely on elevated The City as no standby power source for well operations and must y Y YP P storage towers to supply the system during periods of power loss. WATER TRENDS Water consumption during the recent ten -year period and the average daily use are listed in Table No. 2. The record peak day on the water system occurred on July 6, 1988 when 12.64 million gallons of water were pumped to the system. In 1994, the peak day requirement was 7.76 million gallons, and in 1995 the peak day requirement was 7.79 million gallons. • -3- 11148 -01 Table No. 2 • Water Consumption Based on Pumped Water Average Annual Water Consumption Consumption Year MGD MG 1985 3.56 1,300 1986 3.60 1,314 1987 4.09 1,493 1988 4.87 1,776 1989 4.40 1,605 1990 3.66 1,336 1991 3.44 1,256 1992 3.62 1,323 1993 3.10 1,133 1994 3.48 1,270 1995 3.46 1,263 While the City has experienced peak water use days which exceeded 12 million gallons, the more common peak day usage would be between 7.7 and 10 million gallons and is • likely to occur during the months of June, July or August of any year. Water operators should be prepared to meet this peak demand on a yearly basis. The average day water demand of approximately 3.5 MG should be expected to continue into the future at current levels and may decline slightly as the City matures and conservation measures become more common. The 275 - 350 range for peak day water use per capita for Brooklyn Center is consistent with water use found in other suburban areas and the average day per capita use of about 120 gallons per day is also YP P consistent with water use in the metro area. The ratio of peak day to average day water use was 2.6 in 1988 and has decreased since the drought period. Recent years indicate that the water operators should expect to see peak day demand of 2.3 times the average day water use. The City currently only allows odd -even sprinkling during the summer to encourage water conservation. This restriction enables the water operator to utilize water supply facilities in a more effective manner. During the period of the year when low water demand occurs, after the middle of September and through the first week of May, water operators can expect to deliver about 3.0 MG of water to the system each day. Daily variations in demand should be met by using water from the elevated storage tanks. The monthly water use and average day water use for each month during the recent two -year period are shown in Table No. 3. -4- 11148 -01 Table No. 3 • Monthly Water Volume and Average Day Water Use Per Month 1994 1994 1995 1995 Monthly Average Monthly Average Volume Day Volume Day Month MG MG /Day MG MG /Day January 84.8 2.74 84.3 2.72 February 77.3 2.76 79.2 2.82 March 83.6 2.70 92.8 2.99 April 89.0 2.97 94.9 3.16 May 119.0 3.97 109.3 3.64 June 150.0 5.00 146.9 4.89 July 141.7 4.57 135.7 4.38 August 144.0 4.65 119.7 3.86 I September 112.4 3.75 125.6 4.19 October 89.2 2.88 95.2 3.07 November 81.8 2.73 87.3 2.91 December 86.6 2.79 90.4 2.92 • During a seven month period each year, when the lower water demand occurs, water operators can supply the entire system by using the base operating plan and then utilize the elevated storage tanks to handle the difference between the daily supply and the daily demand. It is very unlikely that the average daily demand would exceed the current demand of 3.0 MG during this seven -month low demand period in the near future. Only two of the City wells will be required during this low demand period and the rest of the wells should be placed in lag position or removed from service. If well rotation is preferred during this time period, the wells must be rotated at the precise time of the NSP meter reading and then allowed to operate for the entire billing period in order to limit the KW demand costs associated with well rotation. PRESENT OPERATING REQUIREMENTS AND CONDITIONS During 1994, five supply wells, Nos. 5, 6, 7, 9 and 10, provided nearly 90% of water used and during 1995, the same five supply wells were used during 1994 and provided over 85% of water used. The current well capacity of all supply wells is 11,220 GPM or 16.16 MGD and the firm well capacity, calculated with the largest well out of service, is 9,700 GPM or 14 MGD. The firm supply capacity of the well field greatly exceeds the peak day requirements during a normal year and exceeds the 1988 peak day requirement of 12.6 MG. -5- 11148 -01 r Water operators have considerable flexibility in selecting the wells which they wish to use for supply during the entire year. The only exception may be Well No. 3 which has • limited supply capacity and high energy costs. During the months of June, July and August when peak water demands are placed on the water system, water operators may need to place seven wells on line to meet the peak day water demand. During the low water demand periods each year, the water operators can easily meet the daily water demands with two supply wells in service. Current operations in the water utility call for the use of partially closed discharge valves in order to limit the discharge flow from the wells. These operating valve restrictions should be eliminated on all well pumps which operate as a primary supply for the water system. I At the present time, the City pulls and services all wells on a six -year maintenance cycle. We prefer and recommend that supply wells be serviced at a time interval based upon hours of operation, decrease in well yield, and increases in energy requirement. As the well operating hours vary considerably in Brooklyn Center, a change in the well maintenance cycle may be beneficial. OPERATIONAL DATA • In order to evaluate the current water utility operation eration for the City of Brooklyn Center, the operational data for the years of 1994 and 1995 were reviewed and are summarized in Tables 4 and 5. • -6- 11148 -01 Table No. 4 Operating Data - 1994 Brooklyn Center, Minnesota Water Average Well Volume Total KWHs/ KW $ Total $ Cents Operat. GPM Sales No MG KYUis MG Demand P F Demand Dollars MG KWH Hours OWrat Tax 2 24.8 49,880 2,011.2 393 74+ 2,976.69 5,149.35 207.63 10.32 380.8 1,085 314.29 3 37.6 81,440 2,166.0 491 84+ 3,884.78 7,104.58 188.95 8.72 762.2 822 433.62 4 14.2 20,080 1,414.1 175 86+ 1,498.06 2,596.07 182.82 12.93 210.5 1,128 158.45 v 5 231.4 338,480 1,462.8 1,710 90+ 11,117.74 23,730.20 102.55 7.01 2,593.8 1,487 1,480.92 6 182.2 265,920 1,459.5 900 87+ 6,946.10 16,411.53 90.06 6.17 2,164.8 1,403 1,001.66 7 187.1 294,560 1,574.3 872 89+ 7,095.87 17,656.40 94.37 5.99 2,192.8 1,422 1,077.61 8 50.8 90,800 1,787.4 670 75+ 4,783.85 8,438.45 166.01 9.29 890.4 951 511.74 9 279.4 441,520 1,580.2 1,757 92+ 12,930.52 28,902.01 103.44 6.55 3,104.4 1,500 1,763.98 10 262.5 482,560 1,838.3 1551 93+ 10 171.47 26.899.62 102.47 5.57 2.944.2 1.486 1.641.65 Total 1,270.0 2,065,240 8,519 $61,405.08 $136,888.21 15,243.9 $8,384.02 Avg. 1,626.2 $107.79 6.63 1,388 t 0 I Table No. 5 Operating Data - 1995 Brooklyn Center, Minnesota Water Average Well Volume Total KWHs/ KW $ Total $ Cents Operat. GPM Sales No. MG KWHs MG Demand P.F. Demand Dollars MG KWH Hours Operat. Tax 2 41.0 77,800 1,897.5 550 85+ 4,010.80 7,248.15 176.78 9.32 643.0 1,063 442.34 3 32.1 67,280 2,096.0 461 82+ 3,466.71 6,659.53 207.46 9.90 735.8 727 406.46 4 58.2 73,440 1,261.9 579 86+ '4,523.53 7,679.79 131.96 10.46 803.3 1,208 468.73 5 147.1 216,400 1,471.1 791 89+ 6,246.96 14,264.52 96.97 6.59 1,654.9 1,481 870.60 6 247.9 366,160 1,477.0 1,170 87+ 9,919.25 23,640.91 95.36 6.46 2,962.1 1,395 1,442.88 1 7 232.9 339,760 1,458.8 1,386 89+ 10,560.26 23,173.34 99.50 6.82 1,602.1 1,492 1,414.34 1 8 54.5 97,200 1,783.5 904 75+ 6,889.57 10,969.36 201.27 11.29 1,002.6 906 669.49 9 255.7 431,040 1,685.7 1,534 92+ 11,663.64 27,321.80 106.85 6.34 2,799.1 1,523 1,667.53 10 194.0 260.400 1.342.3 1.170 92+ 7.940.81 17.508.43 90.25 6.72 2.268.7 1.425 1.068.60 Total 1,262.4 1,929,480 8,545 $65,221.53 $138,465.83 15,471.6 $8,450.97 Avg. 1,528.4 $109.68 7.18 1,360 i I F- eD i 0 i • The electrical cost per million gallons of water supply was $107.79 and required 1,626.2 KWHs of electrical energy in 1994 and the electrical cost per million gallons of water supply was $109.68 and required 1,528.4 KWHs of electrical energy in 1995. Slightly higher electrical demand and slightly lower KWHs of energy were required for the system during 1995 than were required in 1994. The demand related re component resented 45% of the 1994 electrical costs and 47% P P of the 1995 electrical costs. The electrical demand component of the electrical cost remained at high levels for both years and presents an opportunity for the City to more effectively use well supply facilities. The water demands in the City for both 1994 and 1995 were lower than the 10 -year average as shown in Table No. 2. Increased water consumption will tend to lower the cost per million gallons as the demand component of the electrical cost remains unchanged. PARTIALLY- CLOSED VALVES ON WELLS The water operators currently operate all supply wells against partially closed discharge valves in order to limit the well discharge flow and amount of sand discharged from each well. The amount of electrical energy wasted each year varies with the volume of water pumped from each well during the year and with total volume of water supplied to were the system. During 1995, in Brooklyn Cente r 1 262.4 million g allons of water produced and this was third lowest volume produced during the last ten -year period. By using the volume of water produced during 1995 for each well, one can determine the amount of energy consumed by partially closed valves in 1995. As the water volume produced in 1995 was low, the estimate of energy consumed by partially closed valves is very conservative when projected on an annual long term basis. The calculated KWHs of energy used in 1995 by well pumps operating against partially closed valves is as follows: -9- 11148 -01 f Well No. 2 : Restrict flow 140 gpm. Assume head of 300 feet. HP = 300 ft. x 140 gpm = 13.3 hp = 9.9 KW 3,960 x .8 (Eff .) Total Volume Pumped 41.0 MG = 26.9 days operated 1,060 GPM = 1.526 MG /D Amount of Energy 26.9 days x 24 hr. x 9.9 KW = 6,391.4 KWHs Well No. 3 : Restrict flow 470 gpm. Assume head of 320 feet. HP = 320 ft. x 470 gpm = 47.5 hp = 35.4 KW 3,960 x .8 (Eff.) Total Volume Pumped = 32.1 MG = 30.6 days operated 730 GPM = 1.05 MG /D Amount of Energy = 30.6 days x 24 hr. x 35.4 KW = 25,997.8 KWHs Well No. 4 : Restrict flow 200 gpm. Assume head of 320 feet. • HP = 320 ft. x 200 gpm = 20.2 hp = 15.1 KW 3,960 x .8 (Eff .) Total Volume Pumped = 58.2 MG - 33.6 days operated 1,200 GPM = 1.73 MG/D - Amount of Energy = 33.6 days x 24 hr. x 15.1 KW = 12,176.6 KWHs Well No. 5 : Restrict flow 120 gpm. Use design head of 310 feet. HP = 310 ft. x 120 gpm = 11.7 hp = 8.8 KW 3,960 x .8 Total Volume Pumped = 147.1 MG - 69.1 days operated 1,480 GPM = 2.13 MG/D Amount of Energy = 69.1 days x 24 hrs. x 8.8 KW = 14,593.9 KWHs • -10- 11148 -01 Well No. 6 : Restrict flow 40 gpm. Use design head 340 feet. • HP = 340 ft x 40 gpm = 4.3 hp = 3.2 KW 3,960 x .8 (Eff .) Total Volume Pumped 247.9 MG = 123.0 days operated 1,400 GPM = 2.02 MG/D Amount of Energy = 123 days x 24 hrs. x 3.2 KW 9,443.8 KWHs Well No. 7 : Restrict flow 160 gpm. Use design head of 300 feet. HP = 300 ft. x 160 gpm = 15.2 hp = 11.3 KW 3,960 x .8 (Eff.) Total Volume Pumped = 232.9 MG - 108.3 days operated 1,490 GPM = 2.15 MG/D Amount of Energy = 108.3 days x 24 hrs. x 11.3 KW = 29,371.0 KWHs Well No. 8 : Restrict flow 700 gpm. Use design head of 305 • HP = 305 ft. x 700 gpm = 67.4 hp 50.3 KW 3,960 x .8 (Eff .) . Total Volume Pumped = 54.5 MG = 41.6 days operating 910 GPM = 1.31 MG /D Amount of Energy = 41.6 days x 24 hrs. x 50.3 KW = 50,223.2 KWHs Well No. 9 : Restrict flow 270 gpm. Use design head of 300 feet. HP = 300 ft x 270 gpm = 25.6 hp = 19.1 KW 3,960 x .8 (Eff .) Total Volume Pumped = 255.7 MG = 116.8 days operating 1,520 GPM 2.19 MG/D Amount of Energy = 116.8 days x 24 hrs. x 19.1 KW = 53,521.9 KWHs -11- 11148 -01 Well No. 10 : Restrict flow 375 gpm. Use design head of 320 feet. HP 320 ft. x 375 gpm = 37.9 hp = 28.3 KW 3,960 x .8 (Eff.) Total Water Pumped = 194.0 MG = 94.6 days operating 1,425 GPM = 2.05 MG/D Amount of Energy = 94.6 days x 24 hrs. x 28.3 KW - 64,275.5 KWHs The summary of energy consumed and the value of energy consumed by partially closed valves on wells during 1995 is as follows: KWHs 1995 1995 Well Energy Cost Per Energy No. Consumed KWH Value 2 6,391 $0.0932 $595.64 3 25,998 0.0990 2,573.80 4 12,177 0.1046 1,273.71 5 14,594 0.0659 961.74 6 9,444 0.0646 610.07 . 7 29,371 0.0682 2,003.10 8 50,223 0.1129 5,670.20 9 53,522 0.0634 3,393.29 10 64,276 0.0672 4,319.31 Total 265,996 $21,400.86 Average 0.805 Assumes all wells operating during billing p eriod. The current operation in the water utility which utilizes partially closed valves in order to limit discharge flow from the well pumps should be eliminated on all well pumps which operate as a primary supply for the system. While it would be ideal to purchase and place adjustable speed drives (ASDs) on all the well pump motors, Wells No. 2, 3 and 8 will only operate a minimum number of hours each year under the recommended operating plan. Well No. 6 operates with very little flow restriction. Therefore, ASD retrofits are not recommended for Wells No. 2, 3, 6, and 8. The operating plan developed and recommended in this report requires the installation of several ASDs on the existing well pump motors as energy conservation measures in order to gain flexibility and reduce electrical cost in the water supply system for the City of Brooklyn Center. One must recognize the total system requirements when recommending energy conservation measures which will effectively function in an operating plan in order to minimize well pump starts and allow the water storage facilities to handle the hourly and -12- 11148 -01 daily fluctuations in water demand. ASDs for well pump motors will be required on Wells No. 4, 5, 7, 9 and 10. ELECTRIC RATES AND COSTS At the present time, the City of Brooklyn Center water facilities are receiving electrical service under the NSP Municipal Pumping Service Rate Schedule. The KW demand charge on the Municipal Pumping Schedule is determined by the greatest 15 minute demand placed on the electrical system during the billing period and the rate schedule contains no minimum demand charges. Therefore, the City will not incur a demand charge unless loads are placed on the electrical system during the billing periods. The water industry is unique in its ability to store its product and thus avoid extreme peaks and water systems must take full advantage of the water storage capacity available in order o minimize electrical errand cost b not starting well pumps unnecessarily. o t caI d y 9 . The p p Y end result will be a water system achieving the most economical operation while still providing the reliable and dependable service the water consumer requires. The review of water utility electrical billings also indicates that the City has been, and is currently, paying sales tax on the supply wells or the production portion of the water system. Most cities do not pay sales tax on the electrical energy used on supply and • production facilities, but only pay sales tax on electrical energy used for re -pump on their booster station accounts. The City should request a refund of prior sales tax which has been paid and then verify that future electrical billings on the supply accounts will be exempt from the sales tax. During each review year, the City paid approximately $8,400 in sales tax on the supply accounts and the amount of sales tax refund will likely exceed $32,000. OUTLINE OF PROPOSED OPERATING PROCEDURES It is cost effective to review operating procedures and equipment, and to tailor operating procedures to fit the current electrical rate schedules. Water utility operators must switch operating wells at the exact same time that the NSP meter reader reads the electrical meter. By allowing the operation of wells to overlap the meter read time and date or by starting unneeded wells or booster pumps, excessive and unnecessary demand charges are paid to NSP and provide little or no benefit to the City. A new electrical demand is, or can be, established during the first 15- minute period following the reading of the electrical meter which begins the new billing period. -13- 11148 -01 A base operating plan should be developed and followed in order to supply the water needs for Brooklyn Center customers in a cost effective manner. The operating plan • would reduce electrical demand charges, utilize the most efficient well supply pumps and take advantage of the more economical Time of Day electrical rates in order to lower the current electrical operating costs. The City's well supply capacity exceeds the current water demand requirements on peak days and during the seven -month low water demand period, the water operators should only allow two of the supply wells to operate during any electrical billing period. Operation of additional supply wells during this low demand period simply places additional load on the electrical system which results in higher electrical demand costs for the City and provides no benefit to the water system. Some water operators prefer to operate all supply wells on a regular basis and Wells No. 5, 7, 9 and 10 could be rotated on the meter read date each month and then allowed to operate through the entire next billing period if desired by City Staff. However, all City wells except Wells No. 2, 3 and 8 are scheduled to operate at least three months each year and should not require rotation. Wells No. 2, 3 and 8 are very inefficient when compared with the other supply wells available for use and should be placed in a stand -by position as these wells will only be required for emergency use or during extreme drought periods. These wells should be started and operated for a few minutes each year in order to maintain full operating capability. The electrical demand component of the electrical bill has increased significantly during the recent ten -year period and has greatly increased the cost of starting electrical motors or placing electrical loads on the electrical supply grid. These demand costs are likely to continue to increase as we limit the addition of new electrical generating capacity. Therefore if more frequent operation of the City's lag and stand -by wells is desired by the water operators, purchase and /or use of a portable generator should be considered for use in well operation. The generator would increase the water system reliability and reduce the electrical operating costs associated with starting wells. Two operating plans have been included in this Energy Study report. While both operating plans substantially lower the electrical cost required for the operation of the water system, the recommended operating plan requires that Well No. 6 operate during the off peak electrical period only and this operating plan provides further cost reduction from the lower time of day electrical rate and from ASDs retrofit of the other primary supply well motors. • -14- 11148 -01 RECOMMENDATION FOR EACH SUPPLY WELL • Water sample information indicates that the water supplied from Well No. 6 is much lower in manganese concentration than water supplied from the other City wells, that the water supplied from Well No. 2 is much higher in iron concentration than the water supplied from the other City wells and that water supplied from the rest of the City wells is nearly equal in concentrations of iron and manganese. Considerable variation exists in both the electrical demand and electrical consumption requirements of the Brooklyn Center wells. Electrical demand varies from a low of 84 KW on Well No. 2 to a high of 160 KW on Well No. 6 and the electrical energy consumption per million gallons of water pumped varied from a low of 1,291 KWHs on Well No. 4 to a high of 2,134 KWHs on Well No. 3. Please refer to Table No. 1, 3 and 4. Recommendations for well operation are based upon providing the required amount of water supply through utilization of the most economical supply wells with the required capacity. Well No. 2: Should be used as a standby well and operated only to handle emergency supply situations or to provide additional supply during extreme peak water use periods. This well ranked in seventh position when compared to the other City wells in regard to supply capacity and • operating cost, and should be the first standby well to be placed in service. Well No. 3: Should be used as a standby well and operated only to handle emergency supply situations or to provide additional supply during extreme peak water use periods. This well ranked in last position when compared to the other City wells in regard to supply capacity and operating cost, and should be the last standby well to be placed in service. Well No. 4: This well is the most efficient supply well in the system and will be used as a primary supply well. On the recommended Time of Day operating plan, Well No. 4 is expected to be operated only during the five (5) month period from the May meter read date through the September meter read date and should be placed in the first lag position during the rest of the year. In case that Well No. 6 is out of service, Well No. 4 should be used as its replacement. Well No. 5: This well is the third most efficient supply well in the system and should • be used in conjunction with Well No. 6 as a primary supply well throughout the entire year. Well No. 5 has greater capacity than Well No. 4 and when combined with Well No. 6 should match to water demand requirements during the low water demand period. This well -15- 11148 -01 could be rotated with Well No. 10 on a regular basis without impact on electrical cost or supply capacity. • Well No. 6: This well is the second most efficient supply � PP Y well in the system and should be used in conjunction with Well No. 5 or Well No. 10 as a primary supply well throughout the entire year. Well No. 6 will operate in lead position during the off -peak electrical demand periods and should not be required during on -peak electrical periods. Well No. 7: This well is the fourth most efficient supply well in the system and should be used as a primary supply well during the three peak water demand months of June, July and August. Well No. 7 is expected to operate between the June electrical meter read date through the September electrical meter read date and should be placed in second lag position during the rest of the year. In case that Well No. 5 is out of service, Well No. 7 should be used as its replacement. Well No. 8: Should be used as a standby well and operated only to handle emergency supply situations or to provide additional supply during extreme peak water use periods. This well ranked in eighth position when compared to the other City wells in regard to supply capacity and operating cost and should be the second standby well to be placed in • service. Well No. 9: This well is the fifth most efficient supply I well in the system and should be used as a primary supply well during the three peak water demand months of June, July and August. Well No. 9 is expected to operate between the June electrical meter read date and the September electrical meter read date and should be placed in standby position during the rest of the year. Well No. 10: This well is the sixth most efficient supply well in the system and should be used to supply additional water required to met the peak day requirements during the months of June, July and August. Well No. 10 is expected to operate on 8 - days between the June electrical meter read date and the September electrical meter read date and should be placed in standby position during the rest of the year. After retrofit with an ASD, Well No. 10 should become the second most efficient supply well in the system and may be rotated with Well No. 5 on a monthly basis as desired by City staff. • -16- 11148 -01 Water operators should require only two supply wells during the seven month low water demand period, three supply wells during the spring and fall transition period and six or • more wells to meet the peak day water demands which will occur during the months of June, July or August. OPERATING PLAN To maximize the use of electrical service rates, water utilities must take full advantage of water storage capacity and avoid electrical demand charges by not starting weil supply pumps unnecessarily. While considering water storage, it is necessary to consider the peak hourly demands on both an average day and on a peak day. Review of the water utility operating logs for the years 1987 through 1995 reveals that water demands will occasionally exceed 12 million gallons per day during peak demand periods, but that the peak day water demands are generally less than 9 million gallons per day. The average day usage during the low water demand period (seven months each year) has, during the last two years, only exceeded 3 million gallons per day on a few occasions. By using 35% of water available in elevated storage, daily variations between the amount of water consumed and the amount of water produced of about 1.0 million gallons can be handled without using additional well pumps during the low water • demand periods. Water production from the two operating wells may lag the water consumption on an hourly or daily basis and may require Well No. 5 to operate continuously. Elevated storage tanks may not fill completely each day during the low water demand period but the tanks will fill completely each weekend as Well No. 6 can operate the entire time during the weekend on Time of Day rate schedule. This storage capacity can likewise be used to meet the peak day water demands which occur during the months of June, July and August. While peak day demands may exceed 12 million allons during extreme dro the p eak day, during ears of 1994 9 9 9� P Y 9Y and 1995, water demand did not exceed 8 million gallons. Even on peak days the water operator can limit the amount of horsepower required to meet this water demand by having an operating plan in place which places additional water supply on line to meet the water demand. The following operating plan has been developed to deliver the amount of water required to meet the needs of the City on a continuous basis. Seasonal variation in setpoints and operating levels for water storage facilities are expected and recommended in operating plans which follow: i -17- 11148 -01 Operating Plan Base Operation Water Demand 3.1 MG+ Use 7 Months Each Year i Well GPM MGD KW Demand j No. Capacity Produced Monthly 5 or 10 1,480 2.13 132 6* 1,400 1.01 132 Total 2,880 3.14 264 *Well No. 6 - Operates on Time of Day Rate Schedule. Well No. 4 Set in Lag Position. Well No. 7 Set in Second Lag Position. The base operating plan should supply the water needs for the City during the seven month low water demand period each year. Operating Plan • Intermediate Operation Water Demand 4.8 MG+ Use 2 Months Each Year - May and September Well GPM MGD KW Demand No Capacity Produced Monthly 4 1,200 1.73 102 5 or 10 1,480 2.13 132 6* 1,400 1.01 132 Total 4,080 4.87 366 * Well No. 6 - Operates on time of Day Rate Schedule. Well No. 7 - Set in Lag Position. Well No. 9 - Set in Second Lag Position. The intermediate operating plan should supply the water needs for the City during the months of May and September or the transition periods each year between the high and low water demand periods. • -18- 11148 -01 Operating Plan Summer Operation Water Demand 12.2 MG+ Use 3 Months Each Year - June, July and August Well GPM MGD KW Demand No Capacity Produced Monthly 4 1,200 1.73 102 5 1,480 2.13 132 6* 1,400 1.01 132 7 1,490 2.15 138 9 1,520 2.19 150 10 1,420 2.04 160 Total 8,510 12.25 814 *Well No. 6 - Operates on Time of Day Rate Schedule. Well No. 2 - Set in Lag Position. Well No. 3 - Set in Second Lag Position. The summer operating plan should supply the water needs for the City during any peak day which would occur during the months of June, July and August. Control adjustments will be required to assure that • the proper or desired elevated water storage level is maintained during the summer and winter periods. The operating levels for water storage facilities will be different for the two seasons of the year and the water elevations in various facilities are very important. The water elevations should be verified either by overflow or by climbing each facility prior to the summer operating period. Recommended control points for desired set points of the various wells are as listed hereafter. The overflow elevation is based upon 1,015 at Tower No. 3 or Tower No. 2. Base Operation Well GPM Elevated Storage System No Capacity Level On Level Off Overflow 5 or 10 1,480 1,010 1,013 1,015 6* 1,400 1,014 1,015 1,015 4 1,200 1,004 1,011 1,015 7 1,490 999 1,010 1,015 -19- 11148 -01 Intermediate Operation Well GPM Elevated Storage System No Capacity Level On Level Off Overflow 4 1,200 1,013.5 1,014.5 1,015 10 , 5 or 1 480 1 012.5 1,014 1,015 6* 1,400 1,014.5 1,015 1,015 7 1,490 1,005 1,013 1,015 9 1,520 1,000 1,011 1,015 Summer Operation Well GPM Elevated Storage System No Capacity Level On Level Off Overflow 4 1,200 1,014 1,015 1,015 5 1,480 1,013.5 1,014.5 1,015 6* 1,400 1,014.5 1,015 1,015 7 1,490 1,012.5 1,014 1,015 9 1,520 1,012 1,013.5 1,015 10 1,420 1,005 1,012.5 1,015 2 1,060 1,000 1,012.5 1,015 3 730 996 1,012 * Well No. 6 - Operates on Time of Day Rate Schedule. ELECTRICAL DEMAND AND COST REDUCTION Two operating plans have been developed for the Brooklyn Center Water Utility. The first plan uses Well No. 4 and No. 6 as the primary water supply wells for the City and all wells operate on the Municipal Pumping Rate Schedule. The projected estimated annual reduction in electrical on peak KW demand from utilization of this operating plan is 3,733 KW and the estimated reduction in energy consumption is 162,480 KWHs. Using the current electrical rate schedules available for use by the City and the same water volume required during 1995, the City of Brooklyn Center could have, by utilization of this operating plan, reduced their annual electrical operating costs by 31% or $42,342. • -20- 11148 -01 The operating data, water volumes, energy requirements for this operating plan are shown in Table No. 6. The 1995 operating data obtained from actual operation is shown in Table No. 5 and can be compared with this operating plan which is as shown in Table No. 6. Table No. 6 New Operations - Brooklyn Center Well No. 4 and No. 6 as Primary Supply Water Well Volume Total KWHs/ KW $ Total $ Cents No. MG KWHs MG Demand Demand Dollars MG KWH 2 0 - -- -- - -- -- $259.80 -- - -- 3 0 -- - -- -- -- 259.80 -- --- 4 660 851,400 1,290 1,224 9,110.64 35,763.84 54.19 4.20 5 70 102,620 1,466 660 5,728.80 9,169.82 131.00 8.94 6 360 529,200 1,470 1,584 11,790.24 28,455.24 79.04 5.38 7 80 120,800 1,510 414 3,812.94 7,817.54 97.72 6.47 8 -- - -- -- — - -- 259.80 - -- - -- 9 60 97,860 1,631 450 4,144.50 7,437.96 123.97 7.60 10 40 65,120 1,628 480 4,420.80 6 699 32 167.48 10.29 Total 1,270 1,767,000 4,812 $39,007.92 $96,123.12 Average 1,391 $75.69 5.44 • The recommended operating Ian for the City's waters stem laces Well No. 6 on the p 9P Y Y P Time -of -Day electrical rate schedule and uses Wells No. 5, No. 10 and No. 6 as the primary water supply wells for the City. This operating Ian rY PP Y Y P 9 requires that ASDs be P q installed on the electrical motors for Wells No. 4, 5, 7, 9 and 10 and the installation of a Time of Day clock/timer on Well No. 6 as energy conservation measures for the water system. The projected annual reduction in electrical on peak KW demand from utilization of this operating plan is 5,445 KW and the estimated reduction in energy consumption is 253,957 KWHs. Using the current electrical rate schedules available for use by the City and the same water volume required during 1995, the City of Brooklyn Center could have, by utilization of this operating plan, reduced their annual electrical operating costs by about 40% or $56,352. The operating data, water volumes, energy requirements for this recommended operating plan are shown in Table No. 7 and can be compared with 1995 actual operating data as shown in Table No. 5. • -21- 11148 -01 Table No. 7 New Operations - Brooklyn Center Time of Day - With ASDs Water Well Volume Total KWHs/ KW $ Total $ Cents No. MG KWHs MG Demand Demand Dollars MG KWH 2 0 - -- - -- - -- -- $259.80 - -- 3 0 - -- - -- - -- -- 259.80 -- 4 * ** 220 237,714 1,081 419 3,670.84 11,299.77 51.36 4.75 5 * ** 360 492,120 1,367 986 7,577.81 23,093.33 64.15 4.69 6 ** 210 308,700 1,470 1,584 3,722.40 12,193.62 58.06 3.95 7 * ** 80 110,709 1,384 380 3,499.80 7,191.58 89.89 6.50 8 0 -- - -- -- -- 259.80 -- - -- 9*** 60 85,300 1,422 393 3,619.53 6,523.63 108.73 7.65 10 * ** 340 440,980 1,297 923 7101.63 21.031.81 61.86 4.77 Total 1,270 1,675,523 4,685 $29,192.01 $82,113.14 Average 1,319 $64.66 4.90 * KW Demand on Peak = 3,101 Off Peak = 1,584 ** Well No. 6 Operates During Off Peak Period - Time of Day Electric Rate. * ** Retrofit with ASD. The Time of Day Operating Plan offers a much larger reduction in electrical cost • because of the greater reduction in on -peak demand and the lower demand related costs. The addition of ASDs also removes the additional KW demand load caused by n valve restriction s, an d the operation of Well No. 6 shifts considerable demand load to . the off -peak electrical period. The electrical energy consumption is also lower on all well pumps which have been selected for retrofit with an ASD and this reduction combined with the lower rate for electric energy consumed by Well No. 6 during the off - peak period contributes to the greater electrical cost reduction. It is very unlikely that Well No. 6 would be required to operate during the on -peak period. However, in case of an extremely high water demand period, such as occurred in 1988, the City may require the operation of Well No. 6 during the on -peak period. The Time of Day Rate Schedule contains a ratchet provision which allows NSP to bill for a minimum demand equal to 50% of the on -peak demand for the next eleven months following the on -peak operation but does not restrict operation of the well during any time period. On -peak operation would increase the electrical cost by about $6,000 during the year following the on -peak operation. This increased cost would approximately equal one -half of the annual cost for operating with the plan where Well No. 4 and No. 6 are used as the primary wells. Review of the historic water consumption records indicates that water operators can easily supply the City water needs by utilizing the Time of Day Operating Plan and be successful eighteen or • nineteen years out of a twenty -year period. The Time of Day Operating Plan will provide substantial benefit for the City over the long term and is therefore, the recommended operating plan for water utility operation. -22- 11148 -01 t The energy cost reduction is also confirmed by the comparison of the projected cost of $0.0490 per KWH (Table No. 7) for the recommended operating plan with the actual • cost of $0.0718 per KWH (Table No. 5) which occurred during the 1995 water utility operation. WATER UTILITY OPERATING COST REDUCTION From review of the actual water production figures, operating logs and the electrical billing for 1995, it was determined that the actual water volume produced was 1,262.4 million gallons and the electrical billings for utility operation were $138,465.83. Reductions in electrical demand, KWH usage and electrical costs are expected if recommendations regarding changes in operations and installation of recommended energy conservation measures are implemented. Demand Electrical Reductions On Peak Total Cost/ Total KW Demand KW Demand KWHS KWH Dollars 5,444 3,860 $36,029.52 KWHs Cost Reduction 1995 Actual 1,929,480 7.18 = $138,465.83 New Time of Day Operations 1,675,523 4.90 = $82.113.14 Projected Total Reduction in Energy Cost $56,352.69 Data obtained from comparison of Table No. 5 and Table No. 7. These savings can be achieved by utilizing the NSP Time of Day Rate Schedule, by minimizing the number of wells required to supply the daily water demands, and by using ASDs on the primary supply wells in order to eliminate valve restrictions. RECOMMENDED ENERGY CONSERVATION MEASURES The water utility supply system for the City of Brooklyn Center is fairly complex, involving the operation of nine supply wells and three elevated storage towers. One must recognize total water system requirements when recommending energy • conservation measures which will effectively function in the overall operation of the Brooklyn Center Water Utility. -23- 11148 -01 Water operators currently use partially closed valves of discharge side of all supply wells in order to limit the discharge flow from the well pumps. These restrictions should be eliminated on all well pumps which will operate as a primary supply for the system • on the Time of Day Operation Plan. The energy conservation measures recommended for the Brooklyn Center Water Utility are the installation of ASDs on the electrical motors for Wells No. 4, 5, 7, 9 and 10 and the installation of a clock/timer on Well No. 6. The estimated cost of the energy conservation measures is $210,000, and provides a payback of 3.7 years when divided by the $56,352 projected reduction in annual electrical cost. The projected on- peak KW demand reduction is 5,444 KW and the projected reduction in energy consumption is 253,957 KWHs. Based upon the amount of energy consumed (265,996 KWHs) by the partially - closed valves on well discharge lines in 1995 and using average costs which the City paid ($0.0805, see Page No. 12) per KWH during 1995, the potential electrical cost reduction of $21,401 available in 1995, would pay for the five ASDs in 9.8 years. POWER FACTOR CORRECTION During both years, 1994 and 1995, the primary supply Wells No. 4, 5, 6, and 7 operated t at slightly less than required power factor needed to avoid the penalty demand payment each month. Retrofit of Wells No. 4, 5 and 7 with ASDs should bring the power factor on the well motors to desired level. Well No. 6 is expected to operate during the off - peak period only and the installation of capacitors at this well would reduce off -peak demand by 44 KW per year and reduce electrical demand costs by $104 per year. The pay -back period for the capacitor installation at Well No. 6 would exceed 16 years and is not recommended if the Time of Day Operating Plan is utilized. LIGHTING RETROFIT The water system facilities are only staffed for brief periods each day during the day shift. No retrofit lighting is recommended. There are seven (7) wells that receive service from NSP. The fighting consists of incandescent and fluorescent (T -12 magnetic type) lamps. The stations are only staffed for brief periods during the day shift, and calculating 1 hour per day usage, the payback period exceeds the 10 -year program requirement. e -24- 11148 -01 t Although the lighting may not be covered by this program, it is recommended that the City use 26W, self - ballasted fluorescent, twin -tube lamps as replacements for burned- out incandescent lamps. • MEASUREMENT OF ENERGY SAVINGS During the last two years, the water system facilities required the following KWHs of electrical energy and electrical cost to deliver one million gallons of water to the distribution system. Water Volume Time Period (i n K G) KWH /MG $ /MG Cents /KWH 1995 1,262.40 1,528.4 $109.68 7.18 1994 1,270.00 1,626.2 107.79 6.63 During 1994, water operators utilized Wells No. 5, 6, 7, 9 and 10 as the primary supply wells and during 1995, water operators utilized Wells No. 5, 6, 7, 9 and 10 as the primary supply wells. The increased cost per KWH and the increased cost per MG for water produced during 1995, reflects the higher demand cost from the increased amount of load placed on the electrical system during the year. • For evaluation and measurement of the energy measures planned for the supply wells, we expect that the average KWHs required to produce a million gallons of water will decrease, the cost per KWH will also decrease, and the KW demand billings will decrease substantially as loads are reduced or shifted to the off -peak period. Review of the electrical billings should provide sufficient measurement to determine benefits from the recommended energy conservation measures. AUDIT SUMMARY AND RECOMMENDATIONS The energy conservation measures recommended are as discussed in the above report and were obtained from internal audit of water system facilities, review of operating data, pump records and curves, and from interviews with utility operators. Items recommended are those energy conservation measures which will be partially or totally funded by the NSP Program. The annual reduction in on -peak demand is 5,444 KW and the annual savings in energy consumption is 253,957 KWHs. The annual dollars saved are $56,352 from the recommended ASD retrofit to existing well motors and from changes in operation. • -25- 10945 -01 The cost of retrofit for the water system facilities is estimated to be $208,000 and will provide a • 3.69 year payback. The bounty at $0.05 per saved KWH during the first year of operation after retrofit is $12,697.85. Retrofit of facilities at the following NSP accounts is recommended. Table 8 Brooklyn Center Water System - Retrofit Well NSP 1995 Loan ECM No Address Account Number Billing Limit Cost Estimate . 4 7020 Dupont Ave. N. KT4P2P07020000314 $7,680 $15,360 $36,000 5 7001 Camden Ave. N. KT3FMH07001000019 14,265 28,530 36,000 6 1207 69th Ave. N. KTLT6901207000017 23,641 47,282 8,000 7 7101 Camden Ave. N. KT3FMH07101000018 23,173 46,346 42,000 9 7124 Camden Ave. N. KT3FMH07124000011 27,322 54,644 44,000 10 7100 Camden Ave N KT3FMH07100000019 17.508 35,016 44,000 Totals $113,589 $227,178 $210,000 The energy conservation measures outlined for the well supply facilities are hereinbefore listed in this report and detailed information regarding each conservation measure recommended is provided. As the cost of the recommended energy conservation measure for Wells No. 4, No. 5 and No. 10 exceeds the NSP loan limit of two times the recent annual billing, the City may be required to provide partial funding in an amount of $37,094 to install the energy conservation measures at these three wells. The opportunity to reduce electrical demand and energy consumption exists and the NSP Local Government Energy Conservation Program provides the incentive for the City of Brooklyn Center to proceed with recommendations regarding retrofit of the well supply facilities. • -26- 11148 -01 MEMORANDUM DATE: March 18, 1997 TO: Michael McCauley, City Manager FROM: Scott Brink, City Engineer`• SUBJECT: Final Plat Approval - METRO MOTORS ADDITION Summary Explanation On January 27, 1997, the City Council approved Planning Commission Application Number 97002, providing for the platting of property to be developed by Brookdale Mitsubishi. Attached is a copy of the resolution and conditions of approval from January 27. As previously discussed, the preliminary plat was approved subject to several additional conditions. The majority of these conditions have been fulfilled. Therefore, approval of the final plat would also be based on the condition that any outstanding conditions are met. The applicant has submitted the appropriate application and fee. Copies of the final plat have • been submitted, and reproducible mylars must also still be provided for signatures by the City. Recommended City Council Action Approve the final plat of METRO MOTORS ADDITION, subject to the review and approval of Hennepin County, and any outstanding conditions required by the City. • • its adoption: Member introduced the following resolution and moved RESOLUTION NO. RESOLUTION APPROVING FINAL PLAT - METRO MOTORS ADDITION WHEREAS, the Brooklyn Center City Council on January 27, 1997, approved Planning ommission Application 97002 providing preliminary plat approval submitted by g PP g P �' P PP P Brookdale Mitsubishi; 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 METRO MOTORS ADDITION is hereby approved subject to the following conditions: a. The applicant shall enter into a standard maintenance and utility agreement with the City; and • b. Any other conditions of the City, Hennepin County, or as required as part of the preliminary plat approval. 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. • Member Robert Peppe introduced the following resolution and . moved its adoption: RESOLUTION NO. 9797 -09 RESOLUTION REGARDING DISPOSITION OF PLANNING COMMISSION APPLICATION NO 96017 SUBMITTED BY BROOKDALE MITSUBISHI HI WHEREAS, Planning, Commission Application No. 96017 submitted by Brookdale Mitsubishi proposes rezoning, from C -2 (Commerce) and C -1 (Service /Office) to PUD /C -2 (Planned Unit Development/Commerce) of 7.035 acres of land located at 7223, 7227, 7231 and 7235 Brooklyn Boulevard; and WHEREAS, this o osal comprehends the rezoning of the above mentioned P P P property and site and building plan approval for an approximate 18,000 s q . ft. Mitsubishi tu dealers p and the use of an existing, 6,081 sq. ft. building for associated uses; and WHEREAS, the Planning Commission held a duly called public hearing on October 17, 1996 when a staff report and public testimony regarding, the rezoning, and site and building plan were received and reviewed with the Planning Commission continuing the public hearing and referring the application to the Northwest Neighborhood Advisory Group for review and comment; and WHEREAS, the Northwest Neighborhood Advisory Group met to consider this matter on November 7, 1996 and November 26, 1996; and WHEREAS, the Northwest Neighborhood Advisory Group because of a lack of a quorum made no recommendation to the Planning, Commission regarding this application but offered instead minutes relating to the comments received from interested persons and the applicant; and WHEREAS, the Planning, Commission resumed consideration of this matter on December 12, 1996 received an additional staff report and took further testimony during, a continued public hearing; and WHEREAS, the Planning, Commission recommended approval of Application No. 96017 by adopting, Planning, Commission Resolution No. 96 -3 on December 12, 1996; and WHEREAS, the City Council considered Application No. 96017 at its January 13, 1997 meeting; and WHEREAS, the City Council has considered the rezoning and site and building plan request in light of all testimony received, the guidelines for evaluating rezoning,s contained in Section 35 -208 of the City's Zoning Ordinance, the provisions of the Planned Unit RESOLUTION NO. 97-09 Development ordinance contained in Section 35 -355, the Cit Comprehensive Plan, and the • Planning Commission's recommendation contained in Planning Commission Resolution No. 96 -3. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that Application No. 96017 submitted by Brookdale M itsubishi be approved in light of the following considerations: 1. That the City's Comprehensive Plan, which is currently being updated, be revised during this process so that the land use designation map designate the area under consideration as being appropriate for a general commerce use rather than the split commerce and service /office designation that it currently has. 2. The Rezoning and Planned Unit Development proposal are considered to be compatible with the standards, purposes and intent of the Planned Unit Development section of the City's Zoning Ordinance, g iven the revision to the Comprehensive Plan. 3. The Rezoning and Planned Unit Development proposal will allow for the utilization of the land in question in a manner which is compatible with, complimentary to, and of comparable intensity to adjacent land uses as well as those permitted on surrounding land. • 4. The utilization of the property as proposed under the Rezoning and Planned Unit Development proposal will, with the exception of allowing automobile repair adjacent to R-3) zoned property, conform with City ordinance standards and is justified on the basis of the development plan submitted containing extraordinary screening of the site including a large earthen berm and coniferous trees which should diminish any impact on surrounding Land uses. 5. The Rezoning and Planned Unit Development proposal appear to be a good utilization of the property under consideration in that it allows for a reasonable redevelopment of the property in a unified manner containing appropriate buffering and screening. 6. In light of the above considerations, it is believed that the guidelines for evaluating rezoninas as contained in Section 35 -208 of the City's Zoning Ordinance are met and that the proposal is, therefore, in the best interest of the community. BE IT FURTHER RESOLVED by the City Council of the City of Brooklyn Center to approve Application No. 96017 subject to the following conditions and considerations: 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 area subject to review and approval by the City Engineer, prior to the issuance of permits RESOLUTION NO. 97 -09 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 approved site improvements. 4. Any outside trash disposal facilities and rooftop or on- ground mechanical equipment shall be appropriately screened from view. 6. The building is to be equipped with an automatic fire extinguishing system to meet the NFPA standards and shall be connected to a central monitoring device in accordance with Chapter 5 of the City Ordinances. 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. S. The applicant shall submit an as -built survey of the property, improvements and utility service lines, prior to release of the performance guarantee. 9. 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. • 10. The applicant is subject to the requirements and regulations of the Shingle Creek Watershed Management Commission with respect to this site. The storm drainage system shall be acceptable to the Shingle Creek Watershed Management Commission and the applicant shall comply with any conditions imposed by the body prior to the issuance of permits. 11. Ponding areas required as part of the storm drainage plan shall be protected by an approved easement. The easement document shall be executed and filed with Hennepin County prior to the issuance of permits. 12. The plans submitted shall be modified prior to the issuance of building permits to be consistent with the revised plan showing and S ft. high earthen berm and landscape treatment. Said plans, which must be modified, include the drainage and utility plan, the site lighting plan, and any other plan showing the site and building proposed with this project. 13. The applicant has agreed to not use any outdoor public address system for paging employees on the site. • 14. The property shall be replaced into a single parcel with the triangular piece of property located in Brooklyn Park being dedicated to this site through a legal RESOLUTION NO. 97 -09 encumbrance. Said plat shall receive final approval by the City Council and be filed with Hennepin County prior to the issuance of building permits. 15. Modifications to accesses on Brooklyn Boulevard are subject to approval by Hennepin County and their permit process. 16. The applicant shall enter into a development agreement with the City to be reviewed and approved by the City Attorney prior to the issuance of building, permits. Said agreement shall acknowledge the use of this site as an automobile sales and service dealership as proposed under the development plans and shall acknowledge all previously stated conditions of approval and assure compliance with development plans submitted by the applicant. I . January 13, 1997 Date M or ATTEST: Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Kathleen Carmody and upon vote being taken thereon, the following voted in favor thereof: a Kra ess Kathleen �z gn n a Lasman and Robert Pe Y� y � PP e• and the following voted against the same: Debra Hilstrom, whereupon said resolution was declared duly passed and adopted. •