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HomeMy WebLinkAbout1995 06-26 CCP Regular Session CITY COUNCIL AGENDA CITY OF BROOKLYN CENTER JUNE 26, 1995 C 7 p.m. / Call to Order ,-2: Roll Call C L /J S � ,,2: Opening Ceremonies (Do (J " "R �� 0 o 0( 4. Council Report ,M e L-S. Presentation - None 6 ,6. Approval of Agenda and Consent Agenda "'� 1 lC C A a -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 �,� / lcC 11A Y1 - Councilmembers not present at meetings will be recorded as abstaining from • the vote on the minutes. 1. May 22, 1995 - Regular Session JG 1 lcc / LA_ 11 �--� 2. June 5, 1995 - Special Work Session l ,, f ,,4 K C / L A Y' 3. June 12, 1995 - Special Work Session 4. June 12, 1995 - Regular Session 1,:f L-b. Brooklyn Center Fire Department Relief Association Financial Report for the Year Ended December 31, 1994 k� ,q / C /L't '- " L-c. Appointment of Assistant City Manager Nancy Gohman as Commissioner to Northwest Suburbs Cable Communications Commission jC A1 C Vii. Resolution Approving Plans and Specifications, Improvement Project No. 1993- 18, Contract No. 1995 -G, Park and Ride, Pond, Park, and Realignment of 65th Avenue V_ / / /< " - q _r — — / L/ Ll �e Resolution Accepting Work Performed and Approving Final Payment, Improvement Project Nos. 1994 -01 and 02, Contract 1994 -E, Street and Utility Improvement, James, Knox, and 54th Avenues lG i`'1 //C C i�.�� CITY COUNCIL AGENDA -2- June 26, 1995 ,4-: Resolution Accepting Work Performed and Approving Final Payment, Improvement Project Nos. 1994 -11 and 12, Contract 1994 -F, Street & Utility Improvement, Northwest Area K- j-4 14C /, A � r - / L/ 6 ___g. Resolution Declaring a Public Nuisance and Ordering the Removal of Diseased Trees (Order No. DST 06/26/95) /G� /�cC /�� .�-^ �S _/ y - 7 c,h-. Resolution Rejecting Bids for Brooklyn Drive Sanitary Sewer Manhole Repair, 95-- Contract 1995 -G, Improvement Project No. 1995 -11 �G� f /jCC /JA. -� / y�! �.- Approving Transfer of Class B and Sunday On -Sale Intoxicating Liquor License from Larken, Inc. DBA Holiday Inn, Brooklyn Center to Richardson Properties Inc., Operating as a Holiday Inn Franchise y! Licenses KMlKc /U Open Forum S. Council Consideration Items Planning Commission Application No. 94016 submitted by Brookdale Covenant . Church. Request for a Special Use Permit and Site and Building Plan Approval to construct a 12,500 square foot recreation room addition to the existing church located at 5139 Brooklyn B levard. The Planning Commission recommen ed approval of this lication at its June 15, 1995,meeting. �- /,A � C / ,,, - C- ^-- k �b: �� City Council determination that / the Lutheran Church of the Master's proposed modification to the first phase of their Planned Unit Development is a minor amendment. The Planning Commission recommgnde t is action to the City Council at its June 15, 1995, meeting. k � J`i / b A� t/ Comp ehensive Annual Financial Report for the Year Ended December 31, 1994 o /�/ r �-vt 4� � '-mod Resolution Expressing Recognition of the Achievement of the Brooklyn Center High School Baseball Team �� /A A e -,-, L Request by Resident Greg Lutgen, 7216 Brooklyn Boulevard, to Discuss Road Modification to Wingard Lane I()6 f/ Administrative Appeal Under Section 12.1202 of Housing Maintenance / Compliance Orders . -Mr. Selwin Ortega has requested an appearance before the Council to address compliance orders issued his property at 610 - 53rd Avenue North in rookly4 Center. t _ l� �"' �� l� ./t-1 e CITY COUNCIL AGENDA -3- June 26, 1995 Resolution Accepting Bid and Awarding Contract, Improvement Project No. 1995 -11, Contract 95 -E, Corrugated Meta ipe Sanitary Sewer Trunk Relining �� { r C 7 `� s,� � f � i. Woodbine Neighborhood Improvem nt Pro ect: Staff eport • Issues at 71st and Kyle Avenues 10 H_ k C7 f Selection of Cam Andre as Interim City Manager for the City of Brooklyn Center 0 H L — Discussion of Recruitment of Process for City Manager �� f� ,� A 0- teems Removed from the Con Agenda Adjournment j 0 4 / ut 1 / 7 e-- v 3 X� EDA AGENDA V CITY OF BROOKLYN CENTER JUNE 26, 1995 (following adjournment of City Council meeting) :—L Call to Order / O q L-2. Roll Call C L� IC k_l� ,�� 0 L'13: Approval of Agenda and Consent 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. ca"' Approval of Minutes: June 12, 1995 - Regular Session rC 1- /4- - Commissioners not resent at meetings will be recorded as ab /taini from P g the vote on the minutes. - --"—�. Resolution Authorizing the Economic Development Authority in and for the City of Brooklyn Center to Execute an Agreement Sharing Certain Costs Associated with Conveyance of the entral Parking Area of the Shingle Creek Land Company I-, -This is an agreement to flare potential expenses for the modification of the Central Parking Area Agreement (General Litho) 4, Commission Consideration Items ,_ Request for Development Proposal for the Area of 69th and Brooklyn ` Boulevard __( c -'-c l 5. Adjournment _ CITY COUNCIL AGENDA CITY OF BROOKLYN CENTER JUNE 26, 1995 7 p.m. 1. Call to Order 2. Roll Call 3. Opening Ceremonies 4. Council Report 5. Presentation - None 6. Approval of Agenda and Consent Agenda -The following items are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember so requests, in which event the item will be removed from the consent agenda and considered at the end of Council Consideration Items. a. Approval of Minutes - Councilmembers not present at meetings will be recorded as abstaining from the vote on the minutes. 1. May 22, 1995 - Regular Session 2. June 5, 1995 - Special Work Session 3. June 12, 1995 - Special Work Session 4. June 12, 1995 - Regular Session b. Brooklyn Center Fire Department Relief Association Financial Report for the Year Ended December 31, 1994 C. Appointment of Assistant City Manager Nancy Gohman as Commissioner to Northwest Suburbs Cable Communications Commission d. Resolution Approving Plans and Specifications, Improvement Project No. 1993- 18, Contract No. 1995 -G, Park and Ride, Pond, Park, and Realignment of 65th Avenue e. Resolution Accepting Work Performed and Approving Final Payment, Improvement Project Nos. 1994 -01 and 02, Contract 1994 -E, Street and Utility Improvement, James, Knox, and 54th Avenues CITY COUNCIL AGENDA -2- June 26, 1995 f. Resolution Accepting Work Performed and Approving Final Payment, Improvement Project Nos. 1994 -11 and 12, Contract 1994 -F, Street & Utility Improvement, Northwest Area g. Resolution Declaring a Public Nuisance and Ordering the Removal of Diseased Trees (Order No. DST 06/26/95) h. Resolution Rejecting Bids for Brooklyn Drive Sanitary Sewer Manhole Repair, Contract 1995 -G, Improvement Project No. 1995 -11 L Approving Transfer of Class B and Sunday On -Sale Intoxicating Liquor License from Larken, Inc. DBA Holiday Inn, Brooklyn Center to Richardson Properties Inc., Operating as a Holiday Inn Franchise j. Licenses 7. Open Forum 8. Council Consideration Items a. Planning Commission Application No. 94016 submitted by Brookdale Covenant Church. Request for a Special Use Permit and Site and Building Plan Approval to construct a 12,500 square foot recreation room addition to the existing church located at 5139 Brooklyn Boulevard. The Planning Commission recommended approval of this application at its June 15, 1995,meeting. b. City Council determination that the Lutheran Church of the Master's proposed modification to the first phase of their Planned Unit Development is a minor amendment. The Planning Commission recommended this action to the City Council at its June 15, 1995, meeting. C. Comprehensive Annual Financial Report for the Year Ended December 31, 1994 d. Resolution Expressing Recognition of the Achievement of the Brooklyn Center High School Baseball Team e. Request by Resident Greg Lutgen, 7216 Brooklyn Boulevard, to Discuss Road Modification to Wingard Lane f. Administrative Appeal Under Section 12.1202 of Housing Maintenance Compliance Orders -Mr. Selwin Ortega has requested an appearance before the Council to address compliance orders issued his property at 610 - 53rd Avenue North in Brooklyn Center. CITY COUNCIL AGENDA -3- June 26, 1995 g. Resolution Accepting Bid and Awarding Contract, Improvement Project No. 1995 -11, Contract 1995 -E, Corrugated Metal Pipe Sanitary Sewer Trunk Relining h. Woodbine Neighborhood Improvement Project: Staff Report Re: Issues at 71st and Kyle Avenues L Selection of Cam Andre as Interim City Manager for the City of Brooklyn Center j. Discussion of Recruitment of Process for City Manager k. Items Removed from the Consent Agenda 9. Adjournment EDA AGENDA CITY OF BROOKLYN CENTER JUNE 26 1995 (following adjournment of City Council meeting) ( g J ty g) 1. Call to Order 2. Roll Call 3. Approval of Agenda and Consent 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: June 12, 1995 - Regular Session - Commissioners not present at meetings will be recorded as abstaining from the vote on the minutes. b. Resolution Authorizing the Economic Development Authority in and for the City of Brooklyn Center to Execute an Agreement Sharing Certain Costs Associated with Conveyance of the Central Parking Area of the Shingle Creek Land Company -This is an agreement to share potential expenses for the modification of the Central Parking Area Agreement (General Litho) 4. Commission Consideration Items a. Request for Development Proposal for the Area of 69th and Brooklyn Boulevard 5. Adjournment Council Meeting Date June 26, 1995 3 City of Brooklyn Center Agenda Item Number Request For Council Consideration • Item Description: City Council Minutes May 22, 1995 - Regular Session June 5, 1995 - Special Work Session June 12, 1995 - Special Work Session June 12, 1995 - Regular Session Department Approval: Sharon Knutson, Deputy City Clerk Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Recommended City Council Action: • Summary Explanation: (supporting documentation attached Yes 1 May 22, 1995 - Regular Session All Councilmembers were present. June 5, 1995 - Special Work Session All Councilmembers were present. June 12, 1995 - Special Work Session All Councilmembers were present. June 12, 1995 - Regular Session All Councilmembers were present. • 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 MAY 22, 1995 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 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Barb Kalligher, Kristen Mann, Debra Hilstrom, and Kathleen Carmody. Also present were City Manager Gerald Splinter, Assistant City Manager Nancy Gohman, Director of Public Services Diane Spector, Finance Director Charlie Hansen, Director of Community Development Brad Hoffman, Community Development Specialist Tom Bublitz, City Attorney Charlie LeFevere, and Council Secretary Barbara Collman. POINT OF PRIVILEGE Councilmember Mann asked for a personal privilege. She commented the members of the Council have taken oaths as elected representatives to follow laws and she did not want to violate due process. She asked who had submitted Item 8(p) as an agenda item. The City Attorney stated he had suggested the item be added because he had been told the resolution was ready for presentation at the meeting. Councilmember Mann asked whether the date "1992" in the resolution was a typographical error. The City Attorney said it was not an error. Councilmember Mann asked whether the City Manager has resigned and whether the City has received notification of the City Manager's resignation. The City Attorney said there has not been a resignation. The Council has been given a proposed agreement under which terms the City Manager would resign. Councilmember Mann asked whether Item 8(p) is a new contract. The City Attorney stated Item 8(p) is not an employment agreement but is, instead, a contract for involuntary resignation. There was a motion by Councilmember Mann and seconded by Councilmember Hilstrom (for discussion purposes) to terminate the City Manager under the at -will clause of his employment contract and with an effective date of July 1, 1995. 5/22/95 - 1 - Councilmember Mann stated she had made her thoughts clear earlier that it is time for a change. She stated Council should not consider a new contract but should move forward under the terms • of the existing 1995 contract. The City Attorney clarified Item 8(p). The agreement is not an employment contract but a proposed severance agreement. The City Manager's legal counsel and the City Attorney prepared the agreement. The agreement provides for benefits which are included in the existing employment contract. During preparation of the document, the City Attorney had no authority to negotiate the terms of the agreement, only to memorialize requested terms of settlement. b g e ent. The Y q City Attorney explained the resolution's reference to 1992. The 1995 employment agreement calls for o benefits in the case of involuntary resi or termination by the Council. There are three factors affecting benefits: (1) Some benefits are automatic regardless of resignation or termination. (2) Some benefits are arguably up for discussion. There are four findings that can be made which affect benefits. The City Manager's ten -year period was from 1982 to 1992. The law was passed in 1992. There was a further explanation of legal issues, including the "highly compensated employee" law. (3) Some benefits are not clearly and not arguably required, such as attorney fees and out - placement funding. The City Attorney reiterated he did not negotiate the agreement. He only transferred the information into the format of a severance agreement. He is satisfied the Council could act on the document legally if it chooses. Councilmember Mann announced she would not look at a new package but would only use the existing contract. She called the question on the earlier motion. The City Attorney noted the presiding officer may or may not call the question when he or she is asked to call the question by a member. Councilmember Carmody noted she would prefer to have further discussion on the matter. Councilmember Kalligher commented she would like to request an Executive Session be scheduled. Councilmember Mann noted there was a motion on the floor. Councilmember Hilstrom asked Councilmember Mann to amend the motion to request the it t eC q Y Manager's resignation as opposed to the wording of "terminate." Councilmember Mann said she would need to see a written resignation. Councilmember Hilstrom asked Councilmember Mann whether the motion could be amended to say "request for resignation. " There was a motion by Councilmember Hilstrom to amend the earlier motion. Councilmember Mann noted the City Attorney had stated the City Manager has not resigned. She stated she would not amend the motion. 5/22/95 -2- Councilmember Carmody stated she was under the impression that two weeks ago • Councilmember Mann, Councilmember Hilstrom, and Councilmember Kalligher called the City Attorney to request the termination of the City Manager. Councilmember Mann called a point of order. Councilmember Carmody stated Councilmember Mann had opened the issue. Councilmember Mann called the question. Councilmember Carmody asked that the question not be called and that the Council continue with the regular agenda items. Councilmember Hilstrom noted the meeting could not move forward with a motion on the floor. The City Attorney noted a re- ordering of the agenda is an option. He stated the presiding officer has authority to determine whether to act on a motion or await further consideration. It is the will of the body. Mayor Kragness stated the motion could wait as the Council had other business to consider. Councilmember Mann stated she wished to go on record as stating she would not vote for the consent agenda. She said she would not look at two contracts. She would abstain from voting. • Mayor Kragness noted Item 8(p) was not a part of the consent agenda. OPENING CEREMONIES Helen Jacobson offered the invocation. COUNCIL REPORTS Councilmember Mann announced an open hearing of the Hennepin Recycling Group on May 24, 1995, at the Crystal Community Center at 7 p.m. Councilmember Hilstrom stated she had taken part in the Mayor's Bowl Across. The event was successful and the City had been thanked for its participation. Mayor Kragness stated she had attended the Governor's Day of Excellence event. Chrissy Wendell, a Brooklyn Center resident, was the youngest person honored at the event. Mayor Kragness also attended the American Heart Association North Hennepin Affiliate. She stated she serves on the Board of Directors and has been nominated as president of the group. A Brooklyn Center resident, Linda Kieffer, was honored by the association as "Rookie of the Year" for community programs for the year. Mayor Kragness stated she was proud of both residents and excited for their awards. 5/22/95 - 3 - Mayor Kragness noted the City Council held a goal - setting session on May 18, 1995. She read the seven goals written by the Council, which were to develop a five -year strategic plan, to revitalize the City's housing stock and overall development, to re- examine and re- define the role of the City, to display team spirit, to encourage friendly treatment of residents as customers, to enhance the City's public image, and to enhance City services. Mayor Kragness commented the past two weeks have been difficult for the City. She asked residents to bear with the Council as it attempts to do what is best for the City. She stated the City needs to work together and move forward. She also read a short poem. APPROVAL OF AGENDA AND CONSENT AGENDA Mayor Kragness inquired if any Councilmember requested any items be removed from the consent agenda. Councilmember Mann asked that Items 6(a)(3) and 6(b) be removed. Councilmember Carmody noted Staff had requested the removal of Item 6(d). The City Manager agreed Staff had requested it due to a change in the amount. The City Attorney noted the agenda could be re- ordered and the issue taken up separately. Councilmember Kalligher proposed Item 8(p) be removed from the agenda and an Executive Session be held to discuss it. Councilmember Carmody stated she was against holding an Executive Session as the matter should be discussed openly. Councilmember Kalligher commented she thought it would be the • City Manager's decision whether the meeting should be open or not. The City Attorney stated an Executive Session could be held if the purpose were a performance review but the Council would not have authority to hold an Executive Session for the purpose of discussing a severance package. Mayor Kragness commented these steps are putting the "cart before the horse." There was a motion by Councilmember Kalligher to hold an Executive Session as soon as possible for the purpose of discussion of the City Manager's performance. The City Attorney noted if an Executive Session were to be scheduled during an open meeting, such as tonight's Council meeting, the three -day posting requirement would not be in effect. Councilmember Mann asked whether, in that case, Executive Session could be held following the meeting in progress. The City Attorney said it could. Councilmember Mann seconded the motion. I 5/22/95 -4- Councilmember Carmody reiterated she was opposed to holding an Executive Session. She • indicated she felt such an action would prove to residents of Brooklyn Center that the Council does not want to be honest with them. She stated she believed the relationship between the Council and the City Manager is not recoverable and discussion of the kind suggested would be moot. Mayor Kragness agreed and stated she would vote against holding an Executive Session. She mentioned such an action would have been appropriate two weeks ago. Councilmember Carmody agreed and noted that three people were not present for the meeting two weeks ago. She stated she does not agree with terminating the City Manager. She called the question of the motion regarding Executive Session. Councilmember Mann noted she had seconded the motion for the purpose of discussion and would support the motion if the Executive Session were held following the current meeting. Roll call vote on the removal of Item 8(p) from its place on the agenda: Councilmember Hilstrom, aye; Councilmember Mann, aye; Councilmember Kalligher, aye; Councilmember Carmody, nay; and Mayor Kragness, nay. The motion carried. Mayor Kragness called a vote regarding holding an Executive Session later this evening. Councilmember Mann stated she wanted to go into Executive Session immediately. Mayor • Kragness noted it would not be fair to people in attendance regarding other matters. Councilmember Kalligher suggested Executive Session be called for Tuesday or Wednesday. Councilmember Carmody said she would not be available at those times. The City Attorney suggested the matter be broken down and a vote taken on whether or not to hold an Executive Session, without setting a date. There was a motion by Councilmember Kalligher to hold an Executive Session as soon as possible. Councilmember Mann objected to the motion as too open- ended. She stated she wanted the meeting to be held tonight following the regular Council meeting and asked for the motion to be amended as such. There was no second to the motion. Roll call vote on holding Executive Session as soon as possible: Councilmember Kalligher, aye; Councilmember Hilstrom, nay; Councilmember Mann, nay; Councilmember Carmody, nay; and Mayor Kragness, nay. The motion failed. • 5/22/95 - 5 - There was a motion by Councilmember Hilstrom and seconded by Councilmember Mann to request the City Manager's resignation and add a discussion of the resignation to the agenda. • Councilmember Carmody tated the relationship with Manager has been severed. The o th the City ana Y P Y 5 working relationship is not functioning. There has been publicity. It is impossible to recover the situation. She stated she is opposed to the request for resignation but will support it as there is no alternative. Mayor Kragness indicated agreement with Councilmember Carmody. She stated she is opposed to the action but would vote in favor with a heavy heart for the sake of expediency. The motion passed unanimously. Regarding the Consent Agenda, Councilmember Carmody mentioned the May 2, 1995, Special Work Session began at 6:30 p.m. but the minutes state it began at 7 p.m. There was a separate meeting from 6:30 p.m. to 7 p.m., but there should be a written record of the meeting. The City Attorney stated those minutes will be prepared by his office. Councilmember Mann asked whether they will be minutes of a separate Executive Session. The City Attorney stated they will be regular minutes of a special meeting. Councilmember Mann noted the minutes from the May 2, 1995, Special Work Session can then remain on the Consent Agenda. • There was a motion by Councilmember Carmody and seconded by Councilmember Kalligher to approve the May 22, 1995, agenda and consent agenda as printed. The motion passed unanimously. APPROVAL OF MINUTES APRIL 17, 1995 - BOARD OF EQUALIZATION There was a motion by Councilmember Carmody and seconded by Councilmember Kalligher to approve the minutes of the April 17, 1995, Board of Equalization as printed. The motion passed unanimously. Councilmember Mann abstained. APRIL 24. 1995 - REGULAR SESSION There was a motion by Councilmember Carmody and seconded by Councilmember Kalligher to approve the minutes of the April 24, 1995, regular session as printed. The motion passed unanimously. Councilmember Kalligher abstained. MAY 2 1995 - SPECIAL WORK SESSION There was a motion by Councilmember Carmody and seconded by Councilmember Kalligher to approve the minutes of the May 2, 1995, special work session as printed. The motion passed unanimously. Councilmember Kalligher abstained. 5/22/95 - 6 - MAY 8 1995 - REGULAR SESSION • There was a motion by Councilmember Carmody and seconded by Councilmember Kalligher to approve the minutes of the May 8, 1995, regular session as printed. The motion passed unanimously. Councilmembers Kalligher, Hilstrom, and Mann abstained. RESOLUTIONS RESOLUTION NO. 95 -118 Member Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING QUOTE AND AUTHORIZING THE PURCHASE OF ONE (1) ZODIAC BOAT FOR THE FIRE DEPARTMENT The motion for the adoption of the foregoing resolution was duly seconded by member Barb Kalligher, and the motion passed unanimously. RESOLUTION NO. 95 -119 Member Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS, IMPROVEMENT PROJECT NO. 1995 -11, CONTRACT 1995 -G, BROOKLYN DRIVE SANITARY SEWER MANHOLE REPAIR • The motion for the adoption of the foregoing resolution was duly seconded by member Barb Kalligher, and the motion passed unanimously. RESOLUTION NO. 95 -120 Member Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION AMENDING SPECIAL ASSESSMENT LEVY ROLL NOS. 13372 AND 13373 TO PROVIDE FOR THE AWARD OF ASSESSMENT STABILIZATION GRANTS FOR THE WOODBINE NEIGHBORHOOD IMPROVEMENTS The motion for the adoption of the foregoing resolution was duly seconded by member Barb Kalligher, and the motion passed unanimously. RESOLUTION NO. 95 -121 Member Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING BID AND AWARDING CONTRACT, IMPROVEMENT PROJECT NOS. 1994 -05 AND 06, CONTRACT 1995 -D, HUMBOLDT AVENUE STREET AND UTILITY IMPROVEMENTS, 69TH AVENUE TO 73RD AVENUE i 5,22,95 -7- The motion for the adoption of the foregoing resolution was duly seconded by member Barb Kalligher, and the motion passed unanimously. 0 RESOLUTION NO. 95 -122 Member Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION AMENDING THE 1995 LIQUOR FUND BUDGET AND AWARDING THE BID FOR THREE SAFES FOR THE LIQUOR STORES The motion for the adoption of the foregoing resolution was duly seconded by member Barb Kalligher, and the motion passed unanimously. RECOMMENDATION OF THE FINANCIAL COMMISSION REGARDING AMENDMENT OF THE ADEQUATE GENERAL FUND BALANCE FORMULA CONTAINED IN THE FINANCIAL MANAGEMENT POLICIES There was a motion by Councilmember Carmody and seconded by Councilmember Kalligher to approve the recommendation of the Financial Commission regarding amendment of the adequate general fund balance formula contained in the Financial Management Policies. The motion passed unanimously. RATIFICATION OF ADMINISTRATIVE APPROVAL OF LICENSES There was a motion by Councilmember Carmody and seconded by Councilmember Kalligher to ratify the following list of licenses which were administratively approved on May 10, 1995. MECHANICAL SYSTEMS • Air and Furnace Care 8733 Humboldt Ave. N. All - American Heating & A /C, Inc. 1900 Glenwood Ave. Allied Fireside, DBA Fireplace Corner 2700 Fairview Ave. Aspen Heating 1871 E. Minnehaha Louis Degidio, Inc. 6501 Cedar Ave. S. Environmental Comfort Systems, Inc. 890 N. Mill St. Fore Mechanical, Inc. P.O. Box 130788 Gas Supply, Inc. 2238 Edgewood Ave. S. Minnesota Heating & A/C 10701 93rd Ave. N. NewMech Companies, Inc. 1633 Eustis St. NW Sheetmetal Co. of St. Paul 2136 Wabash Ave. P & D Mechanical Contracting Co. 4629 41st Ave. N. Pete's Repair, Inc. 8835 Xylon Ave. N. Quality Air, Inc. 7907 5th St. N.E. Ron's Mechanical 1812 E. Shakopee Ave. Sheet Metal Services 30 N.W. Main, Bethel United Heating & A/C 2702 Idaho Ave. N. 5/22/95 - 8 - RENTAL DWELLINGS Initial: . Robert C. Witt 7100 Unity Ave. N. Renewal: Doug and Kathleen Williams 5107 Drew Ave. N. Jack and Nancy Wold 5907 -09 June Ave. N. Bobby and Sally Robson 1107 57th Ave. N. SIGN HANGER Electric Sign and Lighting 11328 Zane Ave. N. Nordquist Sign Co., Inc. 312 W. Lake St. Universal Signs, Inc. 1033 Thomas Ave. RESOLUTIONS CONTINUED RESOLUTION NO. 95 -123 Member Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION APPROVING ISSUANCE OF A NON - INTOXICATING BEER AND A WINE LIQUOR LICENSE TO FUDDRUCKERS, INC., DBA FUDDRUCKERS The motion for the adoption of the foregoing resolution was duly seconded by member Barb Kalligher, and the motion passed unanimously. LICENSES There was a motion by Councilmember Carmody and seconded by Councilmember Kalligher to approve the following list of licenses: AMUSEMENT DEVICES - OPERATOR Brooklyn Center Community Center 6301 Shingle Ck. Pkwy. AMUSEMENT DEVICES - VENDOR B & K Music and Sales 133 Spring Valley Circle GARBAGE AND REFUSE COLLECTION VEHICLES Environmental Refuse 4123 Russell Ave. N. MECHANICAL SYSTEMS Blaine Heating, A/C and Electric, Inc. 13562 Central Ave. N.E. Brooklyn Air Heating and A/C 5801 Lyndale Ave. N. Royalton Heating & Cooling Co. 4120 85th Ave. N. Thermex Corporation 4850 Park Glen Road • 5/22/95 - 9 - MOTOR VEHICLE DEALERSHIP CLASS A Brookdale Ford, Inc. 2500 County Road 10 . RENTAL DWELLINGS Initial: Todd McDonald 7013 Girard Ave. N. Renewal: Marcus Corporation 6415 James Circle N. Leray /Keith Mortensen 4110 Lakebreeze Ave. N. Edward Doll 1201 57th Ave. N. Heidi Amundsen 2816 67th Lane N. Outreach Community Center 507 69th Ave. N. TAXICAB Town Taxi 2500 Washington Ave. #134 The motion passed unanimously. Councilmember Hilstrom requested a re- ordering of the agenda items. Councilmember Hilstrom indicated agreement. The City Attorney noted there was a general agreement to do so. OPEN FORUM Mayor Kragness noted the Council had received three requests to use the open forum session this evening. She asked that public comments concerning the resignation of the City Manager be held until the Council's discussion of that item at the end of the agenda. Dan McFarren, 4413 71st Avenue North, spoke regarding the Woodbine Neighborhood improvements. He stated he has attempted to communicate with City Staff but has been unsuccessful. He distributed a map detailing the area concerned. He stated the City is going to install a circle at the dead end and a long driveway which he will need to maintain. He will need to shovel an extra 25 feet which does not belong to him and he will have to drive around the circle whenever he leaves his driveway. He added his neighbor at 4407 71st Avenue North will have difficulty getting up his driveway in the winter. He stated he would like to know the reasoning behind the changes because they do not make sense to him. Councilmember Hilstrom looked at the map and verified details Mr. McFarren had discussed. Mayor Kragness noted the Council had received a letter from Mr. McFarren and had forwarded it to Staff. Mayor Kragness noted she understood a City Staff member had visited the resident at the property. 5/22/9 5 - 10- Councilmember Carmody asked Mr. McFarren whether he had attended the public hearing held on the Woodbine improvements. Mr. McFarren said he had. The Director of Public Services explained Staff had determined the roadway would never be P Y developed further to the south and connected to another roadway. Therefore, it was decided that rather than replacing the roadway, it would be replaced as a driveway to serve the property. The same type of change has been made six or seven times in other areas of the City. She noted once the land becomes a driveway the City will no longer plow it. It is in the best interest of the community to not replace a roadway that only serves a private garage. Regarding the traffic circle, neighbors in the area had specifically asked the City to address this corner of roadway. City Staff discussed the proposed changes with residents and received their approval. Mr. McFarren stated the change only affects three people. The Director of Public Services said there are five property owners affected. Mr. McFarren said the other two neighbors are only slightly affected. Of the three greatly affected, two said no to the change and one agreed because he would be getting a "free ride." The Director of Public Services said, of the five affected, two received the project enthusiastically and one understood and agreed. Mr. McFarren said the one neighbor had not expressed understanding to him, and he still believed the neighbor would not be able to drive up his driveway. The Director of Public Services noted they had obviously heard two different stories. She added the driveway difficulty is an existing condition. Mr. McFarren said the condition will not be the same because as it is now the resident can head into the driveway straight on. The Director of Public Services said the change will help the situation. The Director of Public Services noted the plan has been approved. An amendment of the plan would cost approximately $5,000. Mayor Kragness verified the property belongs to the City rather than to the resident, and that the City needs the property for utility easement. The Director of Public Services confirmed this. There was a discussion concerning access to a proposed pond. Mr. McFarren added he will have to haul his garbage down the long driveway to the road. Councilmember Hilstrom suggested Staff be requested to work out a solution with Mr. McFarren. The Director of Public Services stated Staff is willing to work with the resident. Councilmember Kalligher requested Staff to meet with Mr. McFarren and then write a memo to Council regarding the results. The Director of Public Services agreed. 5/22/95 Mr. McFarren asked whether he will have to drive around the circle every time he leaves the driveway and whether the City will plow the circle. The Director of Public Services said he will • have to drive around the circle. The City will plow around the circle and up to the curb. Mr. McFarren expressed further disagreement. The Director of Public Services noted there is a similar situation on Halifax. Mr. McFarren said the Halifax situation does not affect residents. Councilmember Carmody noted that a driveway to St. Alphonsus is affected by the Halifax traffic circle. Mayor Kragness asked whether Staff will work with Mr. McFarren. Mr. McFarren said he will work with Staff but it may be futile. Councilmember Kalligher told Mr. McFarren if the efforts are futile he should call the Councilmembers. The Director of Public Services urged quick action so that construction can begin. Mr. McFarren verified the City will need to use the driveway for utility maintenance. The Director of Public Services confirmed this, but said it would be only occasionally, and that the primary access to the pond would be through the Edina Realty parking lot. Councilmember Hilstrom left the meeting at 7:49 p.m. COUNCIL CONSIDERATION ITEMS PLANNING COMMISSION APPLICATION NO. 95005 In the absence of the Planning and Zoning Specialist, the Director of Public Services presented Planning Commission Application No. 95005, submitted by the City of Brooklyn Center, which is a request for a Preliminary Plat approval to combine into two lots the various properties acquired by the City for a pond area and Park and Ride facility located at the northwest quadrant of 65th Avenue North and Brooklyn Boulevard. She reviewed the plans in detail. She noted the two conditions placed on the application by the Planning Commission are standard conditions for similar situations. She noted the Planning Commission recommended approval of this application at its May 11, 1995, meeting. Councilmember Mann asked whether the application should be reviewed by the Shingle Creek Watershed Commission. The Director of Public Services stated the Watershed Commission reviewed the plans two years ago and approved them and they have not changed. Councilmember Hilstrom returned to the Council table at 7:52 p.m. There was a motion by Councilmember Kalligher and seconded by Councilmember Carmody to approve Planning Commission Application No. 95005 subject to the following conditions: 1. The final plat is subject to review and approval by the City Engineer. 1 The final plat is subject to the provision of Chapter 15 of the City ordinance. 5/22/95 - 12- The motion passed unanimously. • PLANNING COMMISSION APPLICATION NO. 95006 In the absence of the Planning and Zoning Specialist, the Community Development Specialist presented Planning Commission Application No. 95006, submitted by VenStar Corporation, which is a request for a Special Use Permit for the placement of fill in the floodway and Site and Building Plan approval for a 20,000 square foot expansion to the General Litho Services, Inc. building previously approved by the City Council under Planning Commission Application No. 95004. Councilmember Kalligher left the meeting at 7:55 p.m. The Community Development Specialist reviewed the applications. He noted the first condition placed on the approval by the Planning Commission is a reiteration of 16 original conditions. He stated representatives of VenStar Corporation were present to answer questions. He noted the Planning Commission recommended approval of this application at its May 11, 1995, meeting. There was a motion by Councilmember Carmody and seconded by Councilmember Mann to approve Planning Commission Application No. 95006 subject to the following conditions: 1. All conditions listed under Planning Commission Application No. 95004 shall be continued and complied with prior to issuance of building permits for this project, as per City • Council conditions cited in their March 27, 1995, meeting minutes. 2. The applicant shall receive the appropriate approvals from the Shingle Creek Watershed Management Commission, the Army Corps of Engineers, and the Department of Natural Resources prior to the issuance of permits for this project. 3. 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 passed unanimously. JOINT MEETING WITH CHARTER COMMISSION AND FINANCIAL COMMISSION Mayor Kragness stated a decision has been made to postpone a meeting with the Charter Commission. Councilmember Carmody asked whether the June 19 work session could be dedicated to the meeting with the Financial Commission. The City Manager said it could be arranged that way. Councilmember Kalligher returned to the Council table at 8:01 p.m. . 5/22/95 - 13 - Councilmember Carmody asked whether, in that case, an additional work session would be needed to replace the June 19 work session. The City Manager said the Council could make that • decision. There was a motion by Councilmember Carmody and seconded by Councilmember Kalligher to hold a joint meeting with the Financial Commission in place of the scheduled work session on June 19, 1995. The motion passed unanimously. Donn Escher, a member of the Financial Commission, addressed the Council. He expressed approval of the date of the joint meeting but cautioned Council should be aware the Financial Commission is at an early stage of budget preparation. He also asked the Council to bring goals and ideas to the session. DISCUSSION OF CITY'S OWNERSHIP OF APARTMENT BUILDINGS Councilmember Carmody noted she wished to discuss whether a policy would be in order regarding the City's ownership of apartment buildings. The City has owned a particular building for approximately two years. There is a conflicting interest in that the City also does the housing inspections. She stated although sometimes the situations are temporary, the City should not be in the rental business. She proposed a time limit be set for the ownership of any apartment building. as v a Councilmember Hilstrom su a time Limit be set but lan ua e be included stating Staff �a � b g could bring certain situations for special consideration by the Council. Councilmember Mann said she would agree to a policy containing a time limit but including a • Y clause which would allow for review if more time were necessary. Councilmember Kalligher asked whether office buildings would be included in the policy. Mayor Kragness said office buildings would fall under special consideration. Councilmember Carmody asked whether the City owns any office buildings. Councilmember Hilstrom said it does. Mayor Kragness noted the current building owned should be taken care of soon. There was a motion by Councilmember Hilstrom and seconded by Councilmember Mann to reauest Staff to write a proposed policy regarding City ownership of apartment buildings. The motion passed unanimously. APPROVAL OF REVISED CONTRACT BETWEEN THE FIVE CITIES TRANSPORTATION PROJECT AND NATIONAL SCHOOL BUS SERVICE Councilmember Carmody explained the organization serves seniors aged sixty and over. The City Human Rights and Resources Commission has never believed the service it provided was worthwhile. The service ce only transports residents to North Memorial and is very costly. She su ��ested Council approve t contract but direct Staff to research the other two or three 5/22/95 - 14- companies which provide these services and report to the Human Rights and Resources Commission. r Councilmember Kalliaher left the meeting at 8:09 b g .m. P The City Manager explained Councilmember Carmody is interested in considering a better way of providing services. Councilmember Mann said she would support the approval of the contract but it should be investigated whether transportation to medical services could be added. There was a motion by Councilmember Carmody and seconded by Councilmember Hilstrom to approve the revised contract between the Five Cities Transportation Project and National School Bus Service to include the policy for National Drivers Assistance. The motion passed unanimously. There was a motion by Councilmember Carmody and seconded by Councilmember Hilstrom to direct the Human Rights and Resources Commission to study the transportation needs and consider the options available. The motion passed unanimously. Councilmember Carmody commented she had received a telephone call from a Mrs. Folsted. She expressed thanks to her for providing information and following up on the matter. • PAYE UITY COMPLIANCE REPORT The City Manager indicated the City is required by law to make an annual report on the issue of pay equity. The Assistant City Manager discussed the contents of the report which will be submitted on behalf of the City. She noted this review is presented to the Council for information purposes only and no action is required. The report will be submitted to the state for certification. It appears the City will be in compliance with regard to pay equity. The State will issue a response but it has been known to be a year before it is received. Mayor Kragness asked about the guidelines for compliance. The Assistant City Manager explained the report must show equal pay for males and females and Brooklyn Center's report does show 101 percent equal pay. FAMILY SERVICES COLLABORATIVE The Assistant City Manager stated Northwest Hennepin Human Services Council wants to research setting up satellite sites. The issue of transportation will also be addressed. A Councilmember is needed to participate in the planning and serve as a voice for Brooklyn Center. • 5/22/95 - 15 - Councilmember Carmody recommended Councilmember Hilstrom for involvement on the committee. Councilmember Hilstrom accepted the appointment. There was a consensus of • opinion by the Council. ACQUISITION OF SINGLE - FAMILY HOMES ALONG BROOKLYN BOULEVARD The City Manager indicated Staff would like policy direction on this issue as there have been communications from residents wishing to sell their properties. Councilmember Carmody noted the Council had declined to purchase another property earlier for financial reasons and she wouldn't expect to be able to consider one at this time, either. The properties closer to 69th and Brooklyn Boulevard would be a higher priority and these would be a secondary priority. She asked whether the Council has scheduled which homes it would want to acquire if available. The Director of Community Development explained there has been no area set. Properties have been considered when they have been on the market for sale or the owners have approached the City regarding selling. In general, the policy has been to respond to owners who approached Staff and to sales listing if it was believed the timing was right. Councilmember Carmody asked whether it is best to buy as the financing is available. The Director of Community Development said acquiring homes in the specific area being discussed is low priority in general and the resources are not available. Councilmember Carmody indicated perhaps Council should set a range of houses and otherwise just automatically say the City is not interested. The Director of Community Development suggested the Council formalize a policy that it would want to see offers on properties for sale , and then act on those. Mayor Kragness noted financing is uncertain due to proposed budget cuts. Funding would be on an as- needed basis for this. The Director of Community Development stated any acquisition would be done individually on the merits of the property. Councilmember Hilstrom left the meeting at 8:23 p.m. Councilmember Carmody asked whether Council is being asked to agree to purchase a home or to set a policy. The Director of Community Development stated Staff is asking Council to approve a policy for deciding on home purchases as they arise. Mayor Kragness said such a policy sounds feasible. Councilmember Mann stated that is the policy the City is currently working under. The Director of Community Development agreed but stated the policy has been informal and it needs to be formalized. There was a motion by Councilmember Carmody and seconded by Councilmember Mann to direct Staff to prepare a written policy concerning acquisition of single- family homes. The motion passed unanimously. 5/22/95 - 16 - • RESOLUTION NO. 95 -124 Member Kristen Mann introduced the following resolution and moved its adoption: RESOLUTION EXPRESSING RECOGNITION AND APPRECIATION OF JOHN HENRY FOR HIS DEDICATED PUBLIC SERVICE ON THE HUMAN RIGHTS AND RESOURCES COMMISSION The motion for the adoption of the foregoing resolution was duly seconded by member Kathleen Carmody, and the motion passed unanimously. Councilmember Hilstrom returned to the Council table at 8:26 p.m. SALE OF BONDS (FOUR COURTS APARTMENT'S PROJECT), The City Manager noted a resolution is the final action required in this matter. The Community Development Specialist noted this resolution is for the final issuance of housing revenue bonds. There is no financial commitment on the part of the City in this matter. Representatives of Dominium Company are present at this time. Councilmember Mann left the meeting at 8:28 p.m. Councilmember Carmody noted Council has considered this item previously so it has no questions on the issue. RESOLUTION NO. 95 -125 Member Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF RENTAL HOUSING REVENUE REFUNDING BONDS (FOUR COURTS APARTMENTS PROJECT), SERIES 1995A AND TAX CREDIT INVESTOR REVENUE BONDS (FOUR COURTS APARTMENTS PROJECT), SERIES 1995B UNDER MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF INDENTURES OF TRUST AND LOAN AGREEMENTS AND OTHER DOCUMENTS; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE BONDS; PROVIDING FOR THE SECURITY, RIGHTS AND REMEDIES OF THE OWNERS OF SAID BONDS The motion for the adoption of the foregoing resolution was duly seconded by member Debra Hilstrom, and the motion passed unanimously. IMPROVEMENT PROJECT NOS. 1995 -07 AND 08 The Director of Public Services noted the resolution approves acquisition of easements. Three of the four easements relate to the traffic "kidney bean." The "V" at 71st Avenue and Kyle Avenue North will be straightened. Property owners on the north side of the road are affected 5/22/95 - 17 - and all are in favor of the project and agree with the valuations. An office /condominium complex is also in agreement. Regarding the planned meeting with Mr. McFarren, who spoke earlier in Open Forum, the Director of Public Services stated any action taken regarding Mr. McFarren's property would not be connected to these easements. The City Manager commented at the original hearing, residents requested action be taken to correct the odd shape, and the proposed plan is the best answer to the problem. Staff has met with residents. The situation is difficult but this plan meets the requirements effectively. A similar arrangement on Halifax Place is working well. Councilmember Mann returned to the Council table at 8:33 p.m. Councilmember Hilstrom asked the City Manager whether this resolution could be affected by further discussions between the Director of Public Services and Mr. McFarren. The City Manager stated there could be an effect on the shape of the island but he does not expect that to happen. The roadway needs to be straightened. Mr. McFarren's concern appears to be his added responsibility for plowing, etc. Councilmember Hilstrom commented if this resolution were passed but changes were made, the matter would come back to the Council. The City Manager verified this and stated Staff will make an effort to resolve the issue and proceed. RESOLUTION NO. 95 -126 Member Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION APPROVING ACQUISITION OF EASEMENTS FOR ROADWAY AND UTILITY PURPOSES, IMPROVEMENT PROJECT NOS. 1995 -07 AND 08, WOODBINE NEIGHBORHOOD STREET AND STORM DRAINAGE IMPROVEMENTS The motion for the adoption of the foregoing resolution was duly seconded by member Debra Hilstrom, and the motion passed unanimously. RESOLUTION NO. 95 -127 Member Debra Hilstrom introduced the following resolution and moved its adoption: RESOLUTION EXPRESSING RECOGNITION AND APPRECIATION FOR THE PUBLIC SERVICE OF ORGANIZATIONS PARTICIPATING IN BROOKLYN CENTER'S ADOPT -A- PARK, ADOPT -A- TRAIL, AND ADOPT -A- STREET SPRING CLEAN -UP /EARTH DAY CELEBRATION The motion for the adoption of the foregoing resolution was duly seconded by member Kathleen Carmody, and the motion passed unanimously. Councilmember Kalligher returned to the Council table at 8:36 p.m. 5/22/95 - 18 - IMPROVEMENT PROJECT NOS. 1995 -07 08 AND 09 The City Manager noted a written report is included in Council materials. There is still the • potential of a property tax freeze by the legislature which would limit the City's ability to pay the debt service aid for this project. There are options such as a contingency arrangement or P P J P g Y delaying action. The Director of Public Services noted regarding Option No. 3 that the next meeting would be beyond the bid period and Staff did not obtain any air -tight assurance that bids would be held. The City Manager commented Option No. 3 is not as solid as Option No. 1 and Option No. 2 for that reason. Councilmember Mann stated she preferred Option No. 1. There was a consensus of opinion to follow the procedure outlined in Option No. 1. RESOLUTION NO. 95 -128 Member Kristen Mann introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING BID AND AWARDING CONTRACT, IMPROVEMENT PROJECT NOS. 1995-07,08, AND 09, CONTRACT 1995 -B, WOODBINE NEIGHBORHOOD STREET, STORM DRAINAGE, AND UTILITY IMPROVEMENTS The motion for the adoption of the foregoing resolution was duly seconded by member Debra Hilstrom, and the motion passed unanimously. The City Manager explains this action delays the project pending outcome of legislation. If there is no tax freeze, the contract could be signed as early as tomorrow. However, if the governor is given an option, there would be a week waiting period. As far as timing is concerned, this is the fastest method and approach to take. IMPROVEMENT PROJECT NO. 1993 -18 The Director of Public Services explained she would be presenting a preliminary design of the proposed project for comment. She reviewed the design in detail. The Park and Ride contains 222 stalls with access off of 65th Avenue. The pond consists of two cells with the final design looking somewhat different from preliminiary designs seen earler due to requirements of the Corps of Engineers relating to wildlife habitat. The trail is linked to the trail system at Brooklyn Boulevard. Residents have also asked that the trail be linked at 66th Avenue North. The trail will be used for recreational walking and will have extensive landscaping. The final plan for landscaping will be developed this fall with the property owners. She noted an attempt will be made to preserve the grove of oak trees at 65th Avenue North and Brooklyn Boulevard. The parking lot has been designed around it. There will be mature trees maintained within the parking lot for aesthetic purposes. Regarding the shelter and bike locker areas, the Director of Public Services said the shelters proposed will have an adaptation to the Metropolitan Council Transit Operations (MCTO) i 5/22/95 - 19- generic shelter roof in order to preserve the farm theme. A bus windvane will be added as an extra touch. The two shelters will be a sufficient size for the 222 parking stalls as the MCTO • has stated many people wait for the bus in cars rather than the shelter. The Director of Public Services also stated that the consultant who prepared the conceptual design had shown some park facilities, such as a playground and a basketball court. The residents to the south of the area adamantly opposed active recreation facilities and the Park and Recreation Department believes that the area is adequately served by other parks. Therefore, park facilities have been eliminated from the design but could be reconsidered if necessary. The Brooklyn Center City Council recessed at 8:54 p.m. The meeting of the Brooklyn Center City Council was reconvened by Mayor Kragness at 9:09 p. M. RESOLUTION NO. 95 -129 Member Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION APPROVING PRELIMINARY DESIGN AND AUTHORIZING THE DEVELOPMENT OF FINAL PLANS AND SPECIFICATIONS, IMPROVEMENT PROJECT NO. 1993 -18, POND, PARK, MTC PARK AND RIDE, AND 65TH AVENUE REALIGNMENT The motion for the adoption of the foregoing resolution was duly seconded by member Debra Hilstrom, and the motion passed unanimously. RESOLUTION NO. 95 -130 Member Barb Kalligher introduced the following resolution and moved its adoption: RESOLUTION AMENDING SPECIAL ASSESSMENT LEVY ROLL NO. 13131 TO PROVIDE FOR THE AWARD OF AN ASSESSMENT STABILIZATION GRANT FOR THE JAMES /KNOX STREET IMPROVEMENT The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion passed unanimously. PROCLAMATION Member Kathleen Carmody introduced the following proclamation and moved its adoption: PROCLAMATION DECLARING JUNE 16, 1995, AS THE DAY OF THE AFRICAN CHILD The motion for the adoption of the foregoing proclamation was duly seconded by member Kristen Mann, and the motion passed unanimously. 5/22/95 -20- PURCHASE OF PROPERTY FOR A STORM WATER POND The City Manager commented the final figures are available for this purchase. The Director of Public Services explained the purchase was previously approved b the Council P P P Y PP Y at $70,000. There was confusion by all parties on the purchase price, but there has now been an agreement on the price of $79,000. She recommended the negotiated price of $79,000 be approved. RESOLUTION NO. 95 -131 Member Barb Kalligher introduced the following resolution and moved its adoption: RESOLUTION AMENDING NEGOTIATED AGREEMENT AND AUTHORIZING THE PURCHASE OF PROPERTY FOR A STORM WATER POND The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion passed unanimously. DISCUSSION OF SEVERANCE AGREEMENT Councilmember Hilstrom asked the City Attorney to comment regarding the City Manager's 1995 employment contract as compared to the proposed settlement agreement. Mayor Kragness noted there are citizens present to address the issue. Councilmember Hilstrom questioned whether the Council should decide on the package first before taking public comment. The City Attorney stated it is up to the Council whether and when to take public comment. Mayor Kragness indicated she preferred to hear the citizens who have waited and called them to speak. She noted there were two registrations for comment on this issue and opened the meeting to the public at approximately 9:17 p.m. Walter Bursch, 6028 Emerson Avenue North, stated he moved to Brooklyn Center over 35 years ago and has been proud of the City's leadership, good schools, and hard - working citizens. He expressed concern about recent events. Secretive actions do not "sit well" with him and he believes all units of City government should follow the open meeting laws. He asked the Council to please describe the deficiencies on which the termination of the City Manager is based. He indicated he would like to trust and support the Council but he will need its help in understanding the situation. Madeleine Roche, 816 69th Avenue North, noted she was speaking with regret and anger to reproach the City Council on its actions. The actions reminded her of teenagers on the telephone and such actions are not worthy of the City Council. Absenting themselves from a Council meeting is a cop out and doesn't sit well with citizens. She suggested if resignations are being considered, the Council might start with the resignations of Councilmembers Mann, Kalligher, and Hilstrom. The City of Brooklyn Center does not need this kind of leaders. 5/22/95 -21 - Rather, it needs Councilmembers who have integrity, honesty, and are prepared. The Councilmembers need the City Manager to guide them through one or two years as they learn . their jobs. Jerry Pedlar, 5330 62nd Avenue North, the president of the Brooklyn Center Taxpayers' Association, stated the activities of the City Council lack integrity and fairness, reek of cowardice, and are possibly illegal. He stated he was told three weeks ago that Councilmember Kalligher was the swing vote in a movement to remove the City Manager. At that time, he had asked Councilmember Kalligher what part of the City Manager's performance was wrong and what could go sour in the relationship in only four months and she had said the City Manager's 1994 performance was basically good as far as the two senior members of the Council were concerned. He asked how this action could have been taken without due process. He challenged the Council to make public a list of objections which Councilmember Hilstrom had written. He stated the City Manager deserves due process and was not given it. He also said the Councilmembers work for the citizens and decisions should be fair and in the best interest of the community. He reiterated he would like to see the list of concerns regarding the City Manager, noting he understood the contents are minor details. Councilmember Hilstrom stated she did prepare a list and does not object to its release. However, at this point the City Manager has the option of whether or not it is released to the public. She added she remains confident in her process. Mr. Pedlar commented from the standpoint of a business manager an employee is generally given more than 4 -1/2 months just as a manager would expect that much time. • Councilmember Carmody stated, regarding the list of concerns, she has not as yet seen any evidence for the items detailed. She noted she still does not understand the listing. Don Poss, 3212 65th Avenue North, stated he is a long -time resident and former City Manager (for eleven years) of Brooklyn Center. He said he has known the City Manager for a long time and has known him to be competent, honorable, and loyal. He also stated the citizens are realists and are not present to question the Council's authority to terminate an employee at will for no reason. He expressed his opinion that the City Manager may be feeling freed at this point. He stated his concern is that three councilmembers are blackening the name of Brooklyn Center. He said even the Brooklyn Park charge was legal but man are of the o pinion this was ar c e Y � 5 Y P illegal. Mr. Poss also stated that no City Attorney would begin a process to terminate a City Manager without express instructions from a City Council but there was no formal instruction given in an open meeting. In addition, there has been publicity. He then asked whether it is true the City Attorney advised Councilmember Kalligher not to attend the May 8, 1995, Council meeting. Councilmember Kalligher answered it is true. Councilmember Mann called a point of order. She said there is not an interrogation in process. 5/22/95 -22 - Mr. Poss asked where the City Attorney got the authority to bring a resolution to this meeting. He said he believes there have been many secret meetings. A good illustration that there were secret meetings is the collusion of non - attendance at the May 8 meeting. He said the Council had a fresh start in January and he felt positive about the City government. However, the City Council has done much in the past three weeks to tear down the positive image. The public image cannot be rebuilt with money and it is in the toilet right now. The Councilmembers were elected to exhibit integrity and have done a poor job of it. Councilmember Kalligher called a point of order. She said there should be no clapping by the audience. Mayor Kragness asked the audience to restrain its response. John Barlow, a resident of Brooklyn Park but an employee of Brooklyn Center, commended the Council for its actions. He noted the Council is moving forward and there will always be resistance to change, as is being heard. He said he moved his business out of Brooklyn Center because of arguments and was unhappy with the city government and policies, including bully tactics. He asked where there is proof a secret meeting was held. Councilmember Carmody stated a trial is not in progress and evidence cannot be required. Mr. Barlow noted groundwork is being laid for a suit on the open meeting law. The issue is not whether the City Manager did good work. It is a matter of the City moving forward. Mayor Kragness stated there is a right way and a wrong way to go forward and the one used was wrong. Mr. Barlow answered that this is the opinion of a certain group of people. He added there was once a vendetta to get rid of Mr. Barlow also and he would still like to discuss it with the people involved. In the current case, the Council was taking some initiative and the community is resistant to change. Councilmember Carmody responded to Mr. Barlow by stating the action taken was not an action of the Council but of only three members of the Council. This action has far from improved the City's image and others have noticed. She said this Council is controversial and doesn't accomplish anything. The situation could have been handled in an upright manner. Mayor Kragness commented the image campaign came out of the Chamber of Commerce, not the City government. The image campaign should be kept separate from this issue. She stated the Council is sorry it has happened, but it has. Gene Lhotka, 6035 Lyndale Avenue North, stated he is concerned about the way in which the issue was brought out. It was not handled in a forthright manner. He commented he has worked with the City Manager and admires his work. He stated he has no hidden agendas and hope the Council doesn't either. He told the Councilmembers their constituents are asking for them to be forthright. 5/22/95 -23 - Ned Storla, 4207 Lakeside Avenue North, spoke as a member of the Financial Commission. He stated the City Manager attends meetings of the Financial Commission and is candid, knowledgeable, and articulate. He stated he respects the City Manager. He stated he also respects the City Council. The Council has indicated a desire to move on and dragging on the resolution to this matter for months or years will not be a constructive action. The severance benefit package is a financial cost but it is also an investment in the next city manager, as candidates will be watching how the Council treats the current City Manager at this time. He urged the Council to be careful about providing a secure environment for employees. The way this situation is handled will reflect upon the City of Brooklyn Center and everyone needs to do his or her own part to keep the reflection positive. There was a motion by Councilmember Carmody and seconded by Councilmember Hilstrom to close the public hearing at 9:41 p.m. The motion passed unanimously. Councilmember Mann stated there needs to be a clarification on whether the Council will terminate the City Manager. Councilmember Mann stated she had made a motion earlier and repeated the motion as being to terminate the City Manager at will as according to the Charter under the terms of his signed 1995 City Manager's compensation agreement with the effective date of July 1, 1995. The motion was seconded by Councilmember Kalligher. Councilmember Hilstrom stated she had understood the Council had acted earlier to ask for the City Manager's resignation not termination and the purpose of this discussion was to determine the settlement package. The City Attorney confirmed her statement. Mayor Kragness stated settlement cannot be discussed until a resignation is received. The City Attorney said that was correct. He stated his understanding was the document presented is a statement of terms under which the City Manager would submit an involuntary resignation. He stated he did not have the authority or direction to negotiate an agreement. This is only a statement of satisfactory terms. If Council agrees to the agreement, the resignation will be forthcoming. Councilmember Hilstrom asked the City Manager whether the City Attorney's statement was correct. The City Manager said his attorney had advised him not to comment on the action. He added he was contacted w s o tacted b the it Attorney, after which he approached his coup C t c s Y Y Y � el and the two attorneys worked out the settlement. The City Attorney stated he had made attempts to keep the City Council informed. His effort was only to put the City Manager's requests into lawful written form so that it would be in an adoptable format. He stated the document is legal and is acceptable to the City Manager. He indicated he would be happy to explain the document in detail if the Council desires it. 5/22/95 -24 - Councilmember Kalligher asked whether, if the proposed settlement package were accepted by the Council, the City Manager could come back at any time for further recourse. The City • Attorney said the agreement contains a waiver of all claims prior to the date of execution. He referred to the last sentence of paragraph 7 on page 2 of the agreement. Councilmember Mann asked whether the terms in the sentence referenced legally mean the same as "hold harmless." The City Attorney answered it is a different concept. The indemnification is for the City Manager's protection concerning actions taken during his tenure as City Manager. It would not be appropriate to ask the City Manager to indemnify the City against a third tY g PAY• The are different legal concepts. t s. legal Councilmember Hilstrom read Item No. 10. She asked whether that paragraph would deny her the right to make statements. The City Attorney stated it would depend on whether the h' Y P statements made were acrimonious. Mayor Kragness asked for a definition of the word "acrimonious." The City Attorney stated acrimonious statements would be highly emotional or highly negative statements. He also noted this paragraph is identical to one used by the City of Brooklyn Park in an agreement. Councilmember Hilstrom asked how different the agreement is from the provisions of the employment contract. The City Attorney detailed the provisions. The amount of time for notice of termination is different. The salary is the same in both documents. The term "pay" needs to be defined in order to know whether the provisions referring to "pay" differ. "Pay" may include benefits such as car allowances, dues, and memberships. It is a question of interpretation of the term. The same concern comes out of the use of the term "deferred compensation." The City Attorney was unsure on the comparison in regard to the PERA contribution. Vacation and sick leave clauses are the same. The items requested in paragraph seven are not in the employment contract. The contract also does not require the waiving of all claims, so there is some compensation between the two. A reference letter is not a provision of the employment contract. Mayor Kragness noted a letter of reference is a common courtesy. The City Attorney also said the City would not dispute re- employment insurance. It is mutually respectful but is not in the contract. The 15-day cooling off period is required by law. There was a motion by Councilmember Kalligher to accept the proposed settlement agreement between the City of Brooklyn Center and the City Manager. Councilmember Mann noted a motion was already on the floor and had been duly seconded. She repeated the motion as being to terminate the City Manager at will as according to the Charter under the terms of his signed 1995 City Manager's compensation agreement with the effective date of July 1, 1995. She stated the employment agreement with the City Manager was signed less than six months ago and is in effect. . 5/22/95 -25 - r Mayor Kragness called for a second to the motion. Councilmember Mann stated the motion had been seconded by Councilmember Kalligher. Councilmember Kalligher stated she seconded the • motion for discussion purposes. The City Attorney noted the proposed resolution requires findings before the agreement can be passed. He recommended the resolution be acted upon first. Councilmember Mann called the question. Mayor Kragness called for a vote on the motion to terminate the City Manager under the terms of the contract. Roll call vote: Councilmember Mann, aye; Councilmember Hilstrom, nay; Councilmember Kalligher, nay; Councilmember Carmody, nay; Mayor Kragness, nay. The motion failed. There was a motion by Councilmember Kalligher and seconded by Councilmember Carmody to approve the resolution making findings. The City Attorney noted three changes to the drafted severance agreement. Signature lines need to be added; the names of signatories need to be added; and the word "voluntary" needs to be removed from Exhibit C. RESOLUTION NO. 95 -132 Member Barb Kalligher introduced the following resolution and moved its adoption: RESOLUTION MAKING FINDINGS PURSUANT TO MINNESOTA STATUTES SECTION 465.722, SUBDIVISION 3(3) AND APPROVING EXECUTION OF SEVERANCE AGREEMENT BETWEEN CITY OF BROOKLYN CENTER AND GERALD SPLINTER The motion for the adoption of the foregoing resolution was duly seconded by member Kathleen Carmody and the resolution was amended to include three recommended changes to the severance agreement. Roll call vote: Councilmember Mann, nay; Councilmember Hilstrom, aye; Mayor Kragness, aye; Councilmember Kalligher, aye; Councilmember Carmody, aye. ADJOURNMENT There was a motion by Councilmember Kalligher and seconded by Councilmember Mann to adjourn the meeting. The motion passed unanimously. The Brooklyn Center City Council adjourned at 10:06 p.m. Deputy City Cleric Mayor Recorded and transcribed by: J Barbara Collman TimeSaver Off Site Secretarial • 5/22x'95 -26- ® MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL WORK SESSION JUNE 5, 1995 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in special work session and was called to order by Mayor Myrna Kragness at 7:01 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Barb Kalligher, Kristen Mann, Debra Hilstrom, and Kathleen Carmody. Also present were Director of Community Development Brad Hoffman, City Attorney Charlie LeFevere, and Council Secretary Lorri Kopischke. COUNCILMEMBERS COMMENT Councilmember Mann asked if there could be a brief discussion regarding the properties located on 71st Avenue. She indicated she had concern in regards to the memo regarding Dan and • Vicki McFarren. This issue is on the agenda for the next meeting and she asked that all the property owners and residents on 71st Avenue in the Woodbine project be notified that there will be discussion of the issue at the June 12 meeting. City Attorney indicated there was no need for a motion. City staff was directed to notify all property owners and residents on 71st Avenue in the Woodbine project there would be discussion of this item at the June 12 City Council meeting. DISCUSS APPOINTMENT OF ACTING CITY MANAGER Mayor Kragness reported she had long discussions with Brad Hoffman, Director of Community Development, and Nancy Gohman, Assistant City Manager, regarding who would be qualified to be Acting City Manager. She reported both members of City Staff are very busy at the present time. Ms. Gohman indicated she would be willing to assume the responsibility but only if she had the full support of all five councilmembers. Mayor Kragness referred to the memo submitted by Ms. Gohman in regards to the position. Councilmember Mann confirmed that Ms. Gohman was not a candidate for the position as City Manager and was asking for more money but did not want to perform all the duties required of the position. 6/5/95 - 1 - s Councilmember Kalligher indicated Ms. Gohman was a very new employee to the City and she would rather see Director of Finance Charlie Hansen accept the position. Mayor Kragness indicated she had discussed this with Mr. Hansen but he was very busy now with the City's finance issues. She stated there were three employees who were very qualified for the position, but they were all very busy in their own positions. Councilmember Carmody indicated that Ms. Gohman was not demanding items in her memo but was only requesting items for consideration. She suggested the Council determine what they intend to accomplish in the next six months and who would be best qualified to accomplish this. Councilmember Mann questioned if Ms. Gohman's current job description indicated she would serve as Acting City Manager in the absence of the City Manager. Councilmember Kalligher asked how long it would take to hire a new City Manager. The Director of Community Development indicated it could be done by October or it may take until the end of the year depending on who is available. He indicated there were a lot of variables. City Attorney agreed that it would not be unusual for the process to take until the end of the year. In response to Hilstrom, City Attorney indicated the appointment of an Acting City Manager is i complicated by the Status Quo Order with the Department Heads Collective Bargaining Unit. What the City Council does with any member of the unit has to be agreed upon by the entire unit. He indicated the true job description of the Assistant City Manager states they are to act as the City Manager in his absence. But the job description does not confer the authority the Acting City Manager needs to do all the tasks expected of the City Manager on a daily basis. In a provision under the Charter, duties of an official nature can be performed by someone designated to act as the City Manager by the City Council. Thus far, Ms. Gohman has never been designated as the Acting City Manager and therefore, the City could be in violation of the Status Quo Order, as performing both the duties of the Acting City Manager and the City Manager doubles her job description. He indicated the City Council has the option to choose anyone to replace the City Manager with the exception of the people in the bargaining unit, unless their consent and the consent of the bargaining unit is obtained, and City and Councilmembers who have served in the last year. He indicated one option would be to designate someone for an interim, specified period of time. Mayor Kragness stated she believed it was important that whoever was hired for the temporary position have a background as to the affairs of the City. Councilmember Kalligher indicated her first choice for the position was Director of Finance Charlie Hansen. She again indicated she was concerned as Ms. Gohman was so new to the 6/5/95 -2- City. She stated she believed Director of Community Development Brad Hoffman was capable ® but was very busy with the development of the City. She indicated Mr. Hansen had been with the City for many years. Councilmember Hilstrom stated she would like to see the job description and qualifications of anyone being considered for the position. Mayor Kragness indicated all three employees were qualified but all may not be willing to take on the job. She reported Ms. Gohman had worked in the City of Crystal previously and had worked rou h some 1 her e. th problems t g P Councilmember Hilstrom asked if the responsibilities could be shared between more than one person. Mayor Kragness reported Ms. Gohman had been concerned as she has two young children to care for. She indicated there could not be three people signing official documents. She stated this matter needs to be decided in a timely manner. Councilmember Mann again asked if acting as City Manager was not part of the Assistant City Manager's job description. Councilmember Carmody indicated this was true in a case where the City Manager was ill or on vacation, but not when he was asked to resign. • Councilmember Mann questioned that Ms. Gohman was requesting the City hire someone else to handle some of the responsibilities. Councilmember Carmody indicated she was requesting a part-time Human Resources Assistant to work 24 -hours per week. Mayor Kragness agreed this was reasonable due to the amount of work Ms. Gohman was already Y g g Y performing. Councilmember Hilstrom suggested contacting Sy Knapp. He has been involved with the City for many years. Director of Community Development indicated he thought Mr. Knapp would be qualified if he was interested. There was discussion whether a recruitment firm would be enlisted for the hiring process or if the position should be advertised in the newspaper. Councilmember Mann indicated it would be unreasonable to go through the numerous applications that would be received in response to a newspaper advertisement. 615195 -3 - Mayor Kragness suggested if the City wanted a professional person for the position, they should elicit the service of a professional organization who is trained to find such persons. • Councilmember Hilstrom asked what the League of Minnesota Cities had to offer in this respect. She noted they were listed on the list for professional recruitment selection. She reported the City of Brooklyn Park has a process in place for this type of occurrence. Each year the Council votes on who will serve in place and establishes a chain of command. She asked if it would be possible to bring the City Council together with each of the candidates for the temporary position to get to know them and what qualifications they would bring to the position. She reported in Brooklyn Park the Acting City Manager stays at the same level of salary but is compensated with a bonus depending on how much time they put into the job. Mayor Kragness stated the items requested by Ms. Gohman were certainly negotiable and the memo was only a tool to be used. She suggested if Councilmembers had other candidates whom they think may be interested, to ask them and have them submit a memo similar to the one submitted by Ms. Gohman and personal interviews could then be conducted. City Attorney indicated Councilmembers have access to personnel files to see qualifications. He stated in this case the Mayor approached Ms. Gohman and expressed a need to resolve this issue and asked her under what circumstances she would be available. He cautioned Councilmembers to be careful not to pressure Staff or there may be a problem with the Status Quo Order. He read the Status Quo Order which indicated that negotiations shall not be carried out, threats or promises as to changes in wages in employment are prohibited, employees may • not be questioned by the employer with respect to membership in labor organizations, employees shall not be discriminated against as a result of the petition, and notice of the position must be posted. He stated in Ms. Gohman's case, the Council would not be negotiating her contract but reaching a mutual agreement in appointing her to the Acting City Manager position. If Ms. Gohman agrees to have herself considered for the position and is in agreement with all the terms, she can go to the Collective Bargaining Unit and say the arrangement is okay with her. He indicated the critical item is that she receives unanimous support of the Council. He stated the City still has a City Manager until July 14. Ms. Gohman can fill in at meetings but her job description only calls for this on a short-term basis. Councilmember Kalligher asked if there was enough time available to meet with Ms. Gohman before the deadline when she can no longer serve as Acting City Manager. City Attorney reported the current arrangement with Ms. Gohman was acceptable but only for Y Y P P Y a short period of time. He indicated she has been given substantial responsibilities with no increase in pay. He stated there is also a problem if some other official action is required such as signing a purchase agreement or hiring or firing of an employee, as she is not authorized to perform these tasks. Under the Charter, these tasks can be performed by someone who is designated by the Council to serve as the Acting City Manager. 6/5/95 -4- Councilmember Mann indicated in all fairness, all fourteen people included in the Collective Bargaining Unit should be allowed to submit a memo if they are interested in the position. h Director of Community Development indicated e b elieved if the Council asked all fourteen people in the Collective Bargaining Unit to submit a memo, they would do it because of an P g g obligation to the City, not because they were genuinely interested. He reported all City Staff have a heavy workload at the present time which complicates taking on the responsibility of Acting City Manager. Mayor Kragness suggested the three persons suggested should be contacted by telephone tomorrow to see if they are interested in the position. If they are, they should be asked to prepare a memo similar to the one submitted by Ms. Gohman. She indicated whatever is done, the Council needs to be in agreement so the person chosen will have a feeling of confidence and know the Council supports them. Councilmember Mann questioned item #8 of Ms. Gohman's memo in which she requested reimbursement for expenses of City meetings. Councilmember Kalligher questioned item #7 of the memo which requested use of a City car. City Attorney indicated these were both standard benefits allowed to the City Manager. Councilmember Mann questioned if Ms. Gohman were chosen as Acting City Manager and her salary was increased and then a new City Manager was hired, would she expect to stay at the same pay level when she returned to her previous job. Director of Community Development indicated this would not be the case and had been addressed in Ms. Gohman's memo under item #9. City Attorney reported this would all be addressed in her contract. When she was excused as City Manager, she would go back to her old job description under the same terms. He indicated this should be made clear but he was confident this was what she was expecting. Councilmember Mann questioned item #5 of the memo which indicated Ms. Gohman did not want to take action against any Staff action by the previous City Manager. City Attorney indicated he believed Ms. Gohman was saying she was willing to take the position but wanted to start with a "clean slate ". She would like to start anew and deal with the employees under her at this time. Mayor Kragness indicated she would contact the three suggested persons, Sy Knapp, Brad Hoffman, and Charlie Hansen and see if they were interested in assuming the position. If they were, she would ask that a memo similar to Ms. Gohman's be prepared and submitted by Friday to be circulated to the Councilmembers. 6/5/95 -5 - There was Council Consensus to schedule a work session for Monday, June 12 prior to the City Council meeting to discuss the prospects. DISCUSS RECRUITMENT PROCESS FOR SELECTING NEW CITY MANAGER Councilmember Hilstrom indicated she would like to obtain the fees charged by the different suggested recruitment agencies. She also stated she would like to investigate the options available through the League of Minnesota Cities. Director of Community Development indicated when he was with the City of Hopkins, the City Manager left and the recruitment process was handled internally through National Publications. He reported this process was very cumbersome and time consuming for City Staff and Councilmembers. Councilmember Hilstrom indicated she would like to investigate the process the recruitment agencies use to perform background checks. There was Council consensus to send a letter requesting quotes to the agencies on the list. City Attorney indicated quotes could be received within a week and circulated among the Councilmembers. He indicated the requests could be sent and the agencies given until June 15 to respond. He reported the consultant would help the Council to determine a salary range. They will actually draft an employee agreement and negotiate for the City. He indicated the salary would depend on the qualifications of the person they hire. He stated the Council actually sets the pay plan range for all employees. He reported this could be changed before a new City t Manager was hired as this would not affect anyone. Councilmember Hilstrom stated she would still like to see a scale of the salary range for City Managers in the area. Director of Community Development indicated he would provide this report which is called the Stanton Report. There was Council consensus to include the recruiting process as a discussion item on the June 12 City Council meeting agenda. DISCUSS SELECTION OF CONSULTANT FOR NEGOTIATING AND CONTRACT DEVELOPMENT FOR NEW BARGAINING UNIT Councilmember Kalligher asked if anyone was familiar with Karen Olsen. She indicated she would like to receive more background information such as qualifications and billing procedures. Director of Community Development indicated Karen Olsen works with Cy Smythe and does a lot of labor negotiations. He indicated this is the same firm with whom the City has had a long relationship. 6/5/95 -6- • City Attorney indicated it would be appropriate to ask the consultants to come in yearly and give a presentation to the Council so the members would be more familiar with them and the work they do for the City. OTHER BUSINESS Councilmember Kalligher indicated she would like the City Attorney to prepare an update on the present pending litigation with the City. Director of Community Development reported there is an ongoing condemnation of the motel. He reported the Earle Brown Commons bankruptcy should be resolved shortly. He indicated he had met with the involved parties this morning. City Council announced tonight that it will be holding a special session to discuss Acting City Manager selection process at a work session at 6:00 p.m. on June 12. City Attorney indicated this announcement will suffice as an official notice of that special session. Councilmember Carmody presented a letter received by Phillip Gray, 6919 Regent Avenue North, asking why the Council asked for Jerry's resignation. She indicated he was in attendance at the meeting tonight and asked the Councilmembers to respond to his questions. Councilmembers Kalligher and Mann indicated they would call him or write back to him. Phillip Gray, 6919 Regent Avenue North, asked the Councilmembers why they had fired the • City Manager. He stated he has seen no reason except that it was time for a change. He believed this was too expensive of a decision if there had been no legitimate reason. He believed there had been more discussion tonight in regards to hiring a new City Manager than there had ever been as to why the previous City Manager had been terminated. He believed it would have been more economically feasible to allow him to serve his term and hire someone in the next six months while he was still here. He stated he believed the citizens of Brooklyn Center had the right to know the reasoning behind the decision. Councilmember Kalligher asked Mr. Gray for his telephone number and indicated she would call him in the next day or so. Mr. Gray indicated he appreciated that but thought the entire City should be told. He indicated City Manager was a public position and the public should know why he was terminated. Mr. Dan Remiarz, 6201 June Avenue North, indicated he had been informed the office staff was not unionized. In speaking to Mr. Gray, he indicated there must be a reason the Council does not want to inform the public of the reasoning for Mr. Splinter's termination. He indicated the City would have had to pay for a search for a new City Manager regardless of the circumstances. • 6/5/95 -7- Councilmember Carmody indicated she was still not aware of the reasoning for the termination of the City Manager. Councilmember Kalligher called a point of order. ADJOURNMENT The Brooklyn Center City Council was adjourned by Mayor Kragness at 8:35 p.m. Deputy City Clerk Mayor Recorded and transcribed by: Lorri Kopischke TimeSaver Off Site Secretarial • 6/5/95 - 8- MINUTES OF THE PROCEEDING OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL WORK SESSION JUNE 12, 1995 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in special work session and was called to order by Mayor Myrna Kragness at 6 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Barb Kalligher, Kristen Mann, Debra Hilstrom, and Kathleen Carmody. Also present were City Attorney Charlie LeFevere and Assistant City Manager Nancy Gohman. Council discussed selection of an Acting City Manager. There was a general discussion regarding appointment of an Acting City Manager. Assistant City Manager Nancy Gohman stated it would be acceptable and appropriate for her to act as City Manager through June 26, 1995, and ask Council to select an Interim City Manager at the regular City Council meeting of June 26, 1995. Staff is concerned that we need time to have signature plates and signatures changed over on documents in an orderly and timely fashion by July 14, 1995. If the Council can move along and appoint an Interim City Manager by June 26, 1995, we would have the time to get the signatures changed over in order to conduct regular City business. Councilmember Mann discussed her conversations with the League of Minnesota Cities and Humphrey Institute and brought forward two names of others who may be candidates for Interim City Manager. One being Cam Andre, and the second being John Brandl. There was a general discussion about requesting proposals from others to be selected as Interim City Manager. Through discussion it was a consensus of the Council for the Mayor to contact Cam Andre and John Brandl asking them to also submit proposals to the Council for appointment as Interim City Manager. The Council would then review the proposals from John and Cam as well as the proprosal from Sy at a work session on June 19 and ask for interviews on June 20. There was a discussion with Sy Knapp about the Interim City Manager appointment as well as asking for proposals from Cam and John. Sy had several questions regarding the timeline and expectations of the Council, what are the Council's expectations for operations, and what is expected of him as an Interim City Manager. Nancy Carlson also made some comments regarding the recruitment process for a City Manager. 6/12/95 -1- ADJOURNMENT There was a motion by Councilmember Hilstrom and seconded by Councilmember Mann to adjourn the work session at 6:50 p.m. Deputy City Clerk Mayor 6/12/95 -2- 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 JUNE 12, 1995 CITY HALL CALL TO ORDER The Brooklyn Center City Council met in regular session and was called to order by Mayor Myrna Kragness at 7:01 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Barb Kalligher, Kristen Mann, Debra Hilstrom, and Kathleen Carmody. Also present were Assistant City Manager Nancy Gohman, Director of Public Services Diane Spector, Director of Community Development Brad Hoffman, Planning and Zoning Specialist Ron Warren, City Attorney Charlie LeFevere, and Council Secretary Barbara Collman. OPENING CEREMONIES Blaine Fluth offered the invocation. COUNCIL REPORTS Councilmember Carmody noted an announcement in the community newsletter of the first annual Landscape and Garden Contest. She mentioned locations at which citizens might get copies of the rules and encouraged them to get involved in the contest. Councilmember Hilstrom commented a few councilmembers will be attending the League of Minnesota Cities conference coming up in Duluth and will bring back information to share with the other councilmembers. APPROVAL OF AGENDA AND CONSENT AGENDA Mavor Kragness inquired if any Councilmember requested any items be added to or removed from the consent agenda. Councilmember Mann requested the addition of No. 8(1) regarding the appointment of an Acting City Manager. Councilmember Hilstrom asked that No. 6(e) and No. 6(a)(4) be removed. Councilmember Carmody requested the addition of No. 8(m) regarding General Litho Services, Inc. She also requested the removal of No. 6(a)(3) and No. 6(a)(5), as well as No. 6(b) and No. 6(d). Councilmember Carmody mentioned the Council, in January, had approved procedures for process of City Council meetings. She stated these procedures should be enforced 6/12/95 - 1 - uniformly. She stated she had requested the minutes of two meetings be removed from the Consent Agenda for the purpose of obtaining clarification on the definition of an excused absence for councilmembers. She said accountability is needed. If the City Charter is ambiguous, the Charter Commission should review the policy on absences. She suggested that, in the meantime, absences should be determined excused or unexcused by Mayor Kragness. Councilmember Hilstrom suggested the issue be brought before the Council at a Work Session. Councilmember Carmody agreed. Councilmember Carmody commented the Council had previously, at a Work Session, decided individuals would be asked whether they were interested in holding the position of Acting City Manager. She stated she assumed there was a consensus that if a councilmember wished a certain individual to be asked, she would provide the person's name to Mayor Kragness, who would then ask the person officially. She said she had discovered councilmembers asked individuals personally, rather than having Mayor Kragness ask them. She indicated the council, to establish trust, should follow the procedural rules established. Councilmember Kalligher stated a Council meeting is not the correct forum for Councilmember Carmody's comment. She stated if the Council "picks on" each other it will never get anything done. Councilmember Carmody stated she is just interested in honesty. Mayor Kragness noted the issue should be addressed at a Council Work Session. There was a motion by Councilmember Carmody and seconded by Councilmember Mann to approve the June 12, 1995, agenda and consent agenda with the requested changes. The motion passed unanimously. APPROVAL OF MINUTES MAY 2. 1995 - SPECIAL SESSION There was a motion by Councilmember Carmody and seconded by Councilmember Mann to approve the minutes of the May 2, 1995, special session as printed. The motion passed unanimously. MAY 15, 1995 - SPECIAL WORK SESSION There was a motion by Councilmember Carmody and seconded by Councilmember Mann to approve the minutes of the May 15, 1995, special work session as printed. The motion passed unanimously. PROCLAMATION Member Kathleen Carmodv introduced the following proclamation and moved its adoption: 6/12/95 - 2 - 0 PROCLAMATION DECLARING JUNE 14, 1995, AS "PAUSE FOR THE PLEDGE OF ALLEGIANCE" IN HONOR OF FLAG DAY The motion for the adoption of the foregoing proclamation was duly seconded by member Kristen Mann, and the motion passed unanimously. RESOLUTIONS RESOLUTION NO. 95 -133 Member Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION APPROVING REQUEST FOR PROPOSAL AND AUTHORIZING SOLICITATION OF PROPOSALS FOR PROFESSIONAL SERVICES FOR IMPROVEMENT PROJECT NO. 1995 -04, REPLACEMENT OF LIFT STATION NO. 1 AND ASSOCIATED FORCE MAIN The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion passed unanimously. RESOLUTION NO. 95 -134 Member Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION DECLARING A PUBLIC NUISANCE AND ORDERING THE REMOVAL OF DISEASED TREES (ORDER NO. DST 06/12/95) The motion for the adoption of the foregoing nim resolution was duly seconded by member Kristen Mann, and the motion passed unanimously. RESOLUTION NO. 95 -135 Member Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION ANIENDING SPECIAL ASSESSMENT LEVY ROLL NOS. 13372 AND 13373 TO PROVIDE FOR THE AWARD OF ASSESSMENT STABILIZATION GRANTS FOR THE WOODBINE NEIGHBORHOOD IMPROVEMENTS The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion passed unanimously. LICENSES There was a motion by Councilmember Carmody and seconded by Councilmember Mann to approve the following list of licenses: A?vTUSEfENT DEVICES - OPERATOR Earle Brown Bowl 6445 James Circle 6/12/95 - 3 - Lynbrook Bowl 6357 North Lilac Drive AMUSEMENT DEVICES - VENDOR American Amusement Arcades 850 Decatur Avenue North D.V.M. Inc. DBA Dahlco 296 North Pascal GARBAGE AND REFUSE COLLECTION VEHICLES The Mengelkoch Co. 119 N.E. 14th Street MECHANICAL SYSTEMS Crown Heating Indiana Kraemer Heatin g 7441 Dallas Court MOTOR VEHICLE DEALERSHIP CLASS A Bob Ryan Oldsmobile 6700 Brooklyn Blvd. RENTAL DWELLINGS Renewal: Irvin and Ruth Schloff 4819 Azelia Ave. N. Howard and Harriet Oien 5809 Brooklyn Blvd. Tom and Dorothy Storie 5607 Camden Ave. N. Amos Levang 4100 Lakebreeze Ave. N. Richard M. Schurman 4204 Lakebreeze Ave. N. James and Bobbie Simons 4210 Lakebreeze Ave. N. David Theisen 5601 Lyndale Ave. N. Tracy Rice 6907 Morgan Ave. N. Doualas Finch 66 ' � 7 Xerxes Ave N. SIGN HANGER Crosstown Sign, Inc. 10166 Central Ave. N.E. The motion passed unanimously. OPEN FORUM Mayor Kragness noted the Council had received no requests to use the open forum session this evening. She inquired if there was anyone present who wished to address the Council. There being none, she continued with the regular agenda items. Councilmember Kalligher left the meeting at 7:11 p.m. COUNCIL CONSIDERATION ITEMS PLANNING COMMISSION APPLICATION NO. 95007 6/12/95 - 4 - The Assistant City Manager introduced the Planning and Zoning Specialist to bring the Staff report. The Planning and Zoning Specialist explained he would be discussing two applications relating to the same business, Cass Screw Machine Products Company, concurrently. He then reviewed the Planning Commission's report on Application No. 95007. Councilmember Kalli returned to the Council table at 7:16 p.m. The Planning and Zoning Specialist noted the Planning Commission recommended approval of this application subject to three conditions found on page six of the Commission's May 25, 1995, minutes. PLANNING COMMISSION APPLICATION NO. 95008 The Planning and Zoning Specialist presented the Staff report on Planning Application No. 95008 for Cass Screw Machine Products Company. He noted the Planning Commission recommended approval of the application subject to 15 conditions found on pages six and seven of the Commission's May 25, 1995, minutes. The Planning and Zoning Specialist discussed the conditions. He stated notices were sent 1.7 and a public hearing was held on May 25, 1995, with no parties stating objections. The applicant is available to answer questions during tonight's meeting. Mayor Kragness asked whether there is a time schedule which would indicate when City storm sewer would become available in the area. The Planning and Zoning Specialist stated storm sewer in that area is not in the current Capital Improvements Plan; however, it could be requested. He noted the language for Condition No. 13 is to acknowledge the company will have a responsibility to hook up with the service when it does become available. Mayor Kragness noted when the connection to storm sewer is made it will result in an additional charge to the company. The Planning and Zoning Specialist agreed. He commented perhaps a storm sewer project should precede the Cass Screw Machine Products Company project. Mayor Kragness commented the company would not want to wait that long to do the project. Councilmember Mann asked the applicant whether he is satisfied with the recommended conditions of approval. The applicant indicated he was satisfied. There was a motion by Councilmember Kalligher and seconded by Councilmember Carmody to approve Planning Commission Application No. 95007 subject to the following conditions: 1. The final plat is subject to review and approval by the City Engineer. 6/12/95 -5 - 2. The final plat is subject to the provisions of Chapter 15 of the City Ordinances. 3. A driveway and access easement of 24 foot in width shall be filed with the title to the properties in question. The easement width shall be 13 feet for the proposed Tract A and shall be 11 feet in width along the easterly property line of Tract B, RLS 952. The motion passed unanimously. There was a motion by Councilmember Kalligher and seconded by Councilmember Carmody to approve Planning Commission Application No. 95008 subject to the following conditions: 1. The final building plans are subject to review and approval by the Building Official with respect to applicable codes prior to the issuance of permits. 2. Grading, drainage, and utility plans are subject to review and approval by the City Engineer prior to the issuance of permits. J. A performance agreement and supporting financial guarantee shall be submitted to assure the completion of all site improvements. 4. Any outside trash disposal facilities and roof top mechanical equipment shall be appropriately screened from view. 5. The building is to be equipped with an automatic fire extin s to meet b� b > 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. S. B -612 curb and gutter shall be provided around all parking and driving areas. The plans shall be modified to indicate B -612 curb and gutter around the entrance to this site and to the neighboring site which forms a shared or common access between the two properties. 9. The applicant shall submit an as -built survey of the property, improvements and utility service lines, prior to release of the performance guarantee. 10. 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. 6/12/95 - 6 - 0 11. The applicant shall sign the truck access drive located off 48th Avenue North to prohibit parking of any vehicles in the driveway in front of the building. 12. The applicant shall provide appropriate erosion and sediment control devices on the site during construction as approved by the Engineering department. 13. The property owner shall enter into restrictive covenants to be filed with the title to the properties addressed as 3615 and 3625 - 48th Avenue North, requiring that on site storm sewer be installed and connected to city storm sewer in 48th Avenue North and 47th Avenue North within one year of when it becomes available. 14. All work performed and materials used for construction of utilities shall conform to the City of Brooklyn Center's current standard specifications and details. 15. Site lighting shall comply with the provisions of Section 35 -712 of the City Ordinance prohibiting glare onto neighboring properties. The motion passed unanimously. RESOLUTIONS Councilmember Carmody explained her neighbor had suggested Mr. Thurs be honored for many years of work in the American Little League program. RESOLUTION NO. 95 -136 Member Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION DECLARING THURSDAY, JUNE 22, 1995, AS LES THURS DAY The motion for the adoption of the foregoing resolution was duly seconded by member Barb Kalligher, and the motion passed unanimously. Councilmember Carmody mentioned the Lions Club has sponsored the Earle Brown Days parade for many years and is an integral part of the community. RESOLUTION NO. 95 -137 Mayor Kragness added the City of Brooklyn Center appreciates all the work the Lions Club has done. Member Debra Hilstrom introduced the following resolution and moved its adoption: RESOLUTION RECOGNIZING 40TH ANNIVERSARY OF THE BROOKLYN CENTER LIONS CLUB 1 0 6/12/95 -7- The motion for the adoption of the foregoing resolution was duly seconded by member Barb Kalligher, and the motion passed unanimously. Councilmember Mann indicated this item first came before the Council in 1993 and she recognized it as valuable at that time. The firefighters have excellent skills due to their training. She expressed support for the resolution. RESOLUTION NO. 95 -138 Member Barb Kalligher introduced the following resolution and moved its adoption: RESOLUTION APPROPRIATING $25,000 FROM THE CAPITAL IMPROVEMENTS FUND FOR THE CITY OF BROOKLYN CENTER'S ADDITIONAL SHARE IN BUILDING THE FIRE TRAINING FACILITY AT 71ST AVENUE IN FRIDLEY The motion for the adoption of the foregoing resolution was duly seconded by member Kathleen Carmody, and the motion passed unanimously. Councilmember Hilstrom asked for an estimated cost for the study. The Assistant City Manager stated Marilyn Corcoran, a Brooklyn Park employee who staffs the HRG, said there should be no cost at this point as it is a study by a citizens committee. If any cost is ascertained later, it will be brought before the Council for approval. Councilmember Hilstrom asked where complaints would be fielded if an organized system was approved and put into effect. She asked who would be the direct contact if complaints were made to City Hall. The Assistant City Manager stated complaints would be received by Jim Glasoe in the Public Services Department and forwarded to Marilyn Corcoran. Councilmember Carmody noted Brooklyn Center currently licenses eight companies. She asked who was the impetus behind studying an organized system. The Assistant City Manager replied she is unsure how many companies are licensed. Councilmember Carmody stated the only benefit to an organized program would be to reduce wear and tear on streets by reducing the number of trucks using them. The Assistant City Manager affirmed that would be an advantage. Mavor Kragness noted the proposed resolution would only allow study of the program. She stated citizens will have input and, in fact, volunteers are being sought for a committee to do the study. Councilmember Carmody asked whether the Council would have the chance to approve any costs. The Assistant City Manager affirmed it would. 6/12/95 - 8 - Councilmember Mann commented the approval of the resolution would not obligate the City to the program in any way. Mayor Kra1 agreed and mentioned Brooklyn Center would retain the right to act independently of the other two cities if it chose to do so. RESOLUTION NO. 95 -139 Member Kristen Mann introduced the following resolution and moved its adoption: RESOLUTION RELATING TO SOLID WASTE DISPOSAL DECLARING AN INTENT TO STUDY AND ANALYZE ESTABLISHING A SYSTEM OF ORGANIZED COLLECTION OF REFUSE, RECYCLABLES, YARD WASTE, AND OTHER SOLID WASTE WITHIN THE CITY OF BROOKLYN CENTER The motion for the adoption of the foregoing resolution was duly seconded by member Debra Hilstrom, and the motion P asked unanimously. Councilmember Mann commented the summer bowling program is an excellent program which serves many youth well. Councilmember Kalligher noted such programs are needed in the community. The Assistant City Manager stated the $1,200 for the program was not part of the City budget and we also received over $3,000 donated through the Crime Prevention Fund. Mayor Kragness discussed the details of the request for funding and noted the benefits are well worth the cost. RESOLUTION NO. 95 -140 Member Barb Kalligher introduced the following resolution and moved its adoption: RESOLUTION AMENDING THE 1995 GENERAL FUND BUDGET TO PROVIDE FUNDING FOR SUMMER YOUTH LEADERS The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion passed unanimously. STAFF REPORT - WOODBINE NEIGHBORHOOD IMPROVEMENT PROJECT The Assistant City Manager asked the Director of Public Services to give the Staff report. The Director of Public Services stated Staff had been requested to respond to the property owner at 4413 71st Avenue. She noted the proposal was to straighten the "V" in the road by using a traffic kidney bean. In addition, the "stub" of roadway was only serving one home, so it was proposed to replace the stub of roadway with a driveway. The property owner had p e, Y ressed concern that the snow removal would be a burden to him. 1 0 6/12/95 - 9 - Following a meeting with the owner, the Director of Public Services said he continues to have concerns but better understands the reasoning. The City has suggested an agreement with the property owner which outlines the responsibilities of each party and which provides an amount of money to the property owner which would be sufficient for him to purchase a snowblower adequate for the maintenance of the driveway. She noted other property owners are still concerned. The Director of Public Services explained the reasoning behind the original proposal for street improvements. Traffic often cuts across lanes and across properties. She detailed several options for solving the problem. She also stated the other options were rejected because they did not seem to be good engineering solutions. The option chosen was the traffic kidney bean. It changes conditions and causes some inconvenience but it is believed the larger benefit of safety outweighs the inconvenience. There are some who say the "V" slowed traffic down and a change would allow the speed to increase. It is not a certainty either way. The plan proposed was believed to be the best grouping of benefits for the neighborhood as a whole. An attempt was made to minimize any negative impact on residents of the area. The Director of Public Services went on to say the property owner at 4407 71st Avenue is also concerned about the slope and configuration of his driveway. The City could consider constructing a turn - around. She commented the owner may not like the situation but he informed a staff member several weeks ago that he does understand and accept it. The property owner is present to address the Council. Councilmember Kalligher stated she would like to know how many complaints were received regarding traffic issues with the "V" in the roadway. She asked how much it would cost to add a turn - around. She asked why the street cannot be reconstructed as it is. The Director of Public Services said there have been a handful of complaints over the past five years, but they do not relate to the stub of roadway. The costs for a turnaround would be minimal, probably a few hundred dollars. However, it would cost the City $5,000 to replace the stub of roadway as a street rather than as a driveway. Councilmember Kalligher indicated she would like to see the figures on the issue. She said she is not comfortable extending driveways on the basis of only five complaints. The Director of Public Services said the figures can be provided. The impetus for the street reconfiguration was not savings or cost but safety. There is a time issue as the contractors have begun work in the opposite corner of the project and will be ready to work on this part in a couple of weeks. Councilmember Carmody noted Councilmember Kalligher's question has already been addressed in the Council packet. She stated she is not in favor of paying for a road when paying for a driveway would be cheaper. She asked to hear comments from the two property owners present at the meeting. 6/12/95 - 10- Councilmember Mann asked what the majority of complaints had to do with. The Director of Public Services said the complaints were traffic safety - related. Since there is no channelization, traffic is encouraged to cut across lanes. Councilmember Mann asked what the traffic count is on the street. The Director of Public Services estimated the traffic count at 800 or 900 cars per day. Councilmember Mann noted her residential street has the same situation. She asked whether all Brooklyn Center roadways with the same conditions will be addressed. The Director of Public Services stated any known problems will be addressed as street improvement projects are planned. Councilmember Mann commented the property owner in this case will be getting more land and more work. The Director of Public Services agreed, and said the owner knows that. Councilmember Mann asked the City Y Attorne whether the City's abandonment of previously maintained land would open it up for litigation. The City Attorney stated the purpose for the change would be downsizing rather than abandonment. It is a larger distance than is typical, but all property owners carry their driveways across public right -of- way to get to `e roadway. There is no legal issue. There is only the question of how much burden the City is willing to im.?ose on the property owner. The land cannot be sold but could be held in trust. In terms of ownership, it could be left as a dedicated roadway or vacated to someone else's ownership. Councilmember Mann noted she would like to hear the comments from residents. Councilmember Hilstrom asked how often the City will continue to use the driveway land for City purposes as mentioned. The Director of Public Services said how often would depend on how well the storm drainage pond will serve its purpose and how often it will need to be cleaned. It is possible the driveway would be used once every four or five years. Mayor Kragness asked the owners to address the Council. Marcell Gagnon, 4407 71st Avenue, stated he has lived on his property for 28 years. The City has always plowed the street but is now suddenly saying it is a nuisance to plow it. The plan is to split the dead -end street and make his neighbor's driveway 200 feet long. Currently, he backs out of his driveway onto the dead end and then can drive in either direction. After the street improvement, there will be an island in the middle so he will have to back out blind into the street and have no choice of which way to go. He said the island is stupid and unnecessary. One corner of property does jut out into the street, but it isn't necessary to cut it to such an extent to correct the problem. Traffic could be slowed with the use of stop signs. The snowplow only plows the stub area four or five times each winter so it is not a nuisance. 6/12/95 - - 11 Mayor Kragness asked Mr. Gagnon whether he attended the two open meetings held for the neighborhood residents. Mr. Gagnon said he did not attend. The Assistant City Manager noted the project timeline is an issue but Staff can present figures on the alternatives at the next Council meeting. Mr. Gagnon added when the streets are icy drivers will be cutting in on his driveway. Dan McFarren, 4413 71st Avenue, said the traffic kidney bean is a bad idea. If, as the Director of Public Services stated, the snowplow cannot come to the stub because of the kidney bean in the road, then eliminate the kidney bean. It would be easier to drive in and out of his property without the kidney bean and it is a bad design. The Director of Public Services said if the traffic kidney bean was not constructed, but the street was changed to a driveway, Staff would still recommend the street not be plowed, which would be consistent with similar circumstances in other parts of the City. Mr. McFarren stated when two cars meet on the roadway they do slow down. Mayor Kragness asked for additional information from Staff. The Assistant City Manager reviewed the four roadway designs which had been mentioned. There was a consensus on the list she described, and information would be given to Council at their next meeting. Mr. Gagnon asked who will cut the rass on the added land on his property. He was told g he would be responsible. Mr. Gagnon said he would not cut it. Mayor Kragness urged Mr. Gagnon to attend the next Council meeting. Mayor Kragness asked that the matter be tabled until the next City Council meeting. DISCUSSION - RECRUITMENT PROCESS FOR SELECTING NEW CITY MAINAGER The Assistant City Manager provided materials regarding consultants who specialize in this area. She noted the information was being provided for the councilmembers' information in the case they were interested in hiring a consultant. She stated the Council needs to decide on a recruitment process or decide to use a consultant. She wrote to nine consulting firms and received seven responses. The material she provided consists of outlines of basic information on services and costs for assistance in selection of City Manager. The proposals from the consultants range in complexity. She encouraged the Council to consider the proposals on the basis of what is needed. She was not prepared to make a recommendation of a consultant but did urge the Council to consider using a facilitator for the process. Councilmember Mann stated she would like time to review the proposals from the search firms. Councilmember Kalligher asked whether two weeks would be enough time. 6/12/95 - 12- Councilmember Mann said two weeks would be fine. Councilmember Kalligher asked that the item be added to the agenda for the meeting in two weeks. The Assistant City Manager said the item will be put on the agenda and, in fact, will remain on the agenda until Council determines a process for hiring a new City Manager. She asked the councilmembers to contact her with the names of any additional firms to consider or with any questions. DISCUSSION - SELECTION OF REPRESENTATIVE FOR LABOR NEGOTIATIONS The Assistant City Manager asked the City Attorney to report on this matter. The City Attorney stated letters have been sent to a couple of consultants. Proposals from those consultants should be received before the next City Council meeting and it would be possible to either interview the consultants or review the proposals at that time. Mayor Kragness indicated she would want to see the information. Councilmember Mann stated she did not agree with the union and did not think they should bargain with them and asked the attorney whether the City is required to bargain with the management union. The City Attorney said it will be necessary because a contract is needed. Councilmember Mann stated she had asked the League of Minnesota Cities for names of specialists in labor negotiations and she would like the entire list to receive the proposal information which the City Attorney has been issuing. She read a list of names. The City Attorney said he had already sent a letter to one on the list Councilmember Mann read. The others on the list are law firms, which are more expensive to use. Also, if law firms are to be considered, there are others which should be considered in addition to those on Councilmember Mann's list. Councilmember Mann commented since it is a new contract everything is open to negotiation. The City Attorney agreed. Councilmember Mann said she would be more comfortable using a specialist. She asked if the union will be represented by the Bureau of Mediation Services. The City Attorney said he does not know at this time who will represent the Teamsters in negotiations. Councilmember Mann expressed concern about whether the same party could represent both sides in negotiations. The City Attorney stated that would not happen. The City Attorney asked whether the Council wished to have the search for a representative opened up to law firms. Councilmember Kalligher stated a Request For Proposals (RFP) should be sent out to law firms. Mavor Kragness agreed and stated an effort should be made to ensure the City hires the best person for the job. 6/12/95 - 13 - Councilmember Hilstrom asked for the benefits or differences of using a law firm as opposed to a consultant. Councilmember Mann stated the City would need to have a law firm involved at some point anyway. There was a motion by Councilmember Mann and seconded by Councilmember Kalligher to send out an RFP to law firms for a representative for labor negotiations. The motion passed unanimously. DISCUSSION ITEMS REMOVED FROM THE CONSENT AGENDA RESOLUTION NO. 95 -141 Member Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION DECLARING EARLE BROWN DAYS AS A CIVIC EVENT FROM JUNE 14 THROUGH JULY 1, 1995 The motion for the adoption of the foregoing resolution was duly seconded by member Kristen Mann, and the motion passed unanimously. RESOLUTION NO. 95 -142 Member Barb Kalligher introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING A GIFT FROM PROJECT BC FOR YOUTH SCHOLARSHIPS The motion for the adoption of the foregoing resolution was duly seconded by member Kathleen Carmody, and the motion passed unanimously. APPROVAL OF MINUTES MAY 22. 1995 - REGULAR SESSION Councilmember Hilstrom stated the exact times of people entering and leaving the meeting should be noted in the minutes. There was a consensus of opinion to table the minutes of the May 22, 1995, regular session until the June 26, 1995, meeting for the purpose of correction. Councilmember Carmody stated she had asked for removal of the May 18, 1995, Special Goal Setting Session minutes and of the May 24, 1995, Special Joint Session with the Cities of Crystal and New Hope minutes in order to bring up the issue of having a policy on absences being excused or unexcused. She said she has been asked by residents what determines an excused absence. 6/12/95 - 14- Councilmember Kalligher asked the City Attorney what constitutes an excused absence. Councilmember Carmody noted she had already spoken to the City Attorney. Councilmember Kalligher stated she is now asking the City Attorney because she believes she is the one who Councilmember Carmody is attacking. Councilmember Carmody said that was incorrect as she had meant the other two councilmembers who were absent from the May 8, 1995, meeting. They said they were absent because they feared a mob scene and there was none. Mayor Kragness noted the City Manager had stated the interpretation of excused and unexcused he used was that a councilmember was excused if he or she called in the absence prior to the meeting. She noted perhaps the Charter Commission should consider changes to the procedure. Councilmember Carmody stated the City Manager should be required to decide when an absence is excused. The Charter Commission should give an adequate definition. Mayor Kragness stated the Council could ask the Charter Commission if it would be interested in considering the issue. The policy should be enforced consistently regardless of interpretation. Perhaps a four -hour or a six -hour leeway should be required for an absence to be excused. Councilmember Kalligher asked the City Attorney what policies exist on the matter in other municipalities. The City Attorney stated he did not know. He explained the situation is unique to a chartered, as opposed to statutory, city system. He discussed the reasons for removal of a councilmember. He discussed the legal issues. Councilmember Kalligher asked whether the City would be opening itself to a lawsuit if it attempted to remove a councilmember without a valid reason. She added if letters were sent out to councilmembers the open meeting law would be violated. She said there was no valid reason according to the listing the City Attorney just presented as reasons for removal. She went on to state a councilmember cannot solicit other councilmembers by letter to ask for review of a councilmember's attendance without a substantial reason. The City Attorney said the open meeting law has nothing to do with the reason. Councilmember Kalligher said she meant a letter asking for a resignation. The City Attorney said such a letter does not violate the open meeting law if it doesn't ask for a vote. Councilmember Mann said she interprets such a letter as someone trying to influence her, which could be a violation of the open meeting law. MAY 18 1995 - SPECIAL GOAL SETTING SESSION 6/12/95 - 15 - There was a motion by Councilmember Carmody and seconded by Councilmember Mann to approve the minutes of the May 18, 1995, special goal setting session as printed. The motion passed unanimously. Councilmember Kalligher abstained. MAY 24. 1995 - SPECIAL JOINT SESSION WITH THE CITIES OF CRYSTAL AND NEW HOPE There was a motion by Councilmember Carmody and seconded by Councilmember Mann to approve the minutes of the May 24, 1995, special joint session with the cities of Crystal and New Hope as printed. The motion passed unanimously. Councilmembers Kalligher and Carmody abstained. IMPROVEMENT PROJECT NO. 1993 -18 Councilmember Hilstrom commented Council has not seen the final design and she would like to see it. The Director of Public Services apologized that the final design has not been available. There has been a hold -up at the county level regarding a right -of -way issue. There is a meeting on Thursday which should settle the matter. In addition, the turnaround designs are incomplete because the consultant was unable to meet with property owners. Those meetings should take place at the end of this week. Those two issues are the only differences between the design the Council has and the final design. Councilmember Kalligher asked whether the changes could be substantial. The Director of Public Services said they are minor changes. She added the project is on a tight schedule 0 and asked the Council to consider allowing Staff to submit an advertisement for bids and then present the final version of the design at the meeting in one week. Councilmember Kalligher noted it could be presented as soon as possible. The Assistant City Manager urged the Council to allow Staff to move on with this project. The project is complex due to involvement of other agencies and sometimes it is outside of the Staffs power because of the arrangement. There was a consensus agreement to approve the resolution with an amendment indicating the project could be advertised but plans are not yet approved. RESOLUTION NO. 95 -143 Member Barb Kalligher introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING ADVERTISEMENT FOR BIDS, IMPROVEMENT PROJECT NO. 1993 -18, CONTRACT 1995 -G, PARK AND RIDE, POND, PARK, AND REALIGNMENT OF 65TH AVENUE 6/12/95 - 16 - The motion for the adoption of the foregoing resolution was duly seconded by member Debra Hilstrom, and the motion passed unanimously. DISCUSSIO ITEM 1S ADD . D TO THE CONSENT AGENDA APPOINTMENT OF ASSISTANT CITY MANAGER AS ACTING CITY MANAGER The Assistant City Manager commented she would like to clarify it is part of her job to fill in as Acting City Manager, and that Council will be discussing the appointment of an Interim City Manager at the next regular Council meeting. There was a motion by Councilmember Mann and seconded by Councilmember Kalligher to appoint the Assistant City Manager as Acting City Manager. The motion passed unanimously. PUBLIC HEARING FOR GENERAL LITHO SERVICES INC. RESOLUTION NO. 95 -144 Member Kristen Mann introduced the following resolution and moved its adoption: RESOLUTION CALLING FOR A PUBLIC HEARING WITH RESPECT TO THE PROPOSED FINANCING OF FACILITIES FOR GENERAL LITHO SERVICES, INC. The motion for the adoption of the foregoing resolution was duly seconded by member Barb Kalligher, and the motion passed unanimously. ADJOURNMENT There was a motion by Councilmember Kalligher and seconded by Councilmember Mann to adjourn the meeting. The motion passed unanimously. The Brooklyn Center City Council adjourned at 8:54 p.m. Deputy City Clerk Mayor Recorded and transcribed by: Barbara Collman TimeSaver Off Site Secretarial 6/12/95 - 17 - Council Meeting Date 6/26/95 31 City of Brooklyn Center Agenda Item Number (06 Request For Council Consideration Item Description: Brooklyn Center Fire Department Relief Association Financial Report for the Year Ended December 31, 1994 Department Approval: Charlie Hansen, inance Director Manager's Review /Recommendatio . No comments to supplement this report Comments below /attached Recommended City Council Action: Approval of the report. Summary Explanation: (supporting documentation attached ) • Attached is the Annual Financial Report of the Fire Department Relief Association for the Year 1994. This report has been audited by the same firm, Deloitte & Touche LLP, which audits the City's financial report. Contained in the report are statements on the balances and activities of the Special Fund (pension), and the General Fund of the Association. In January 1994, the City Council approved changes to the Association's bylaws which provide benefit increases to be effective on January 1 of 1994, 1995, and 1996. These benefit increases raised the liability as of December 31, 1993. In spite of the benefit increase, the plan remains very close to being fully funded. In other words, net assets available for benefits approximately equal the pension benefit obligation. This is an achievement duplicated by few other relief associations in Minnesota and can be viewed with pride by the association, its board of directors, and the entire City. • Council Meeting Date June 26, 1995 3 City of Brooklyn Center Agenda Item Number Request For Council Consideration • Item Description: Appointment of Assistant City Manager Nancy Gohman as Commissioner to Northwest Suburbs Cable Communications Commission Department Approval: Nancy 6ohman, Assistant City Manager Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Recommended City Council Action: Approval of Appointment of Assistant City Manager Nancy Gohman as Commissioner to Northwest Suburbs Cable Communications Commission • Summary Explanation: (supporting documentation attached _) City Manager Gerald Splinter was previously appointed as commissioner to Northwest Suburbs Cable Communications Commission. Since Jerry will no longer be attending such meetings, I am recommending the Council appoint me as commissioner to the Northwest Suburbs Cable Communications Commission. Councilmember Kristen Mann is also a commissioner of this Commission. She has been attending meetings and I assume will continue to attend in the future. The appointments to this commission must be made by name and not position. If you have any questions concerning this, please don't hesitate to contact me. Council Meeting Date 6/26/95 City of Brooklyn Center Agenda Item Number lO Request For Council Consideration • Item Description: Resolution Approving Plans and Specifications, Improvement Project No. 1993 -18, Contract No. 1995 -G, Park and Ride, Pond, Park, and Realignment of 65th Avenue Department Approval: Diane pector, Director of Pu i Services Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Recommended City Council Action: Consider a resolution approving plans and specifications. Summary Explanation: (supporting documentation attached No ) • The consulting firm of Short Elliot Hendrickson is completing the final plans and specifications for Improvement Project No. 1993 -18, Contract No. 1995 -G, Park and Ride, Pond, Park, and Realignment of 65th Avenue. The final design is essentially that which was presented to the Council on May 22, 1995 and on June 12, 1995. The purpose of this item is to obtain Council approval of the final plans and specifications. Bid opening is scheduled for July 20, 1995, with the construction contract awarded July 24. Plans will be available for Council inspection Monday night. • Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION APPROVING PLANS AND SPECIFICATIONS, IMPROVEMENT PROJECT NO. 1993 -18, CONTRACT 1995 -G, PARK AND RIDE, POND, PARK, AND REALIGNMENT OF 65TH AVENUE WHEREAS, the City Council on April 10, 1995 per Resolution 95 -129, approved the preliminary design of Improvement Project No. 1993 -18, Park and Ride, Pond, Park, and Realignment of 65th Avenue, Contract 1995 -G, and authorized preparation of final plans and specifications; and WHEREAS, the City's consulting engineer has prepared the plans and specifications for Improvement Project No. 1993 -18. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that the plans and specifications as prepared by the City's consulting engineer are hereby approved. Date Mayor ATTEST: Deputy 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. Council Meeting Date 6/26/95 / 3 City of Brooklyn Center Agenda Item Number Request For Council Consideration • Item Description: RESOLUTION ACCEPTING WORK PERFORMED AND APPROVING FINAL PAYMENT, IMPROVEMENT PROJECT NOS. 1994 -01 AND 02, CONTRACT 1994 -E, STREET AND UTILITY IMPROVEMENT, JAMES, KNOX, AND 54TH AVENUES Department Approval: Did pector, Director f blic Services Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Recommended City Council Action: A resolution accepting work performed and authorizing final payment to Thomas & Sons Construction is attached for consideration. Summary Explanation: (supporting documentation attached ) Contract 1994 -E has been completed by Thomas & Sons Construction. The City Council accepted their bid per Resolution No. 94 -104 and a contract was subsequently executed. The actual final value of their work, $428,849.62 is $6,142.38 less than the executed contract plus contingencies and approved Change Order No. 1. Thomas & Sons Construction has several punch list items to repair or replace prior to release of the final payment to them. • Z,5 Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ACCEPTING WORK PERFORMED AND APPROVING FINAL PAYMENT, IMPROVEMENT PROJECT NOS 1994 -01 AND 02, CONTRACT 1994 -E, STREET AND UTILITY IMPROVEMENT, JAMES, KNOX, AND 54TH AVENUES WHEREAS, pursuant to written contract signed with the City of Brooklyn Center, Minnesota, Thomas and Sons Construction has satisfactorily completed the following improvement in accordance with said contract: Improvement Project Nos. 1994 -01 and 02, Contract 1994 -E, Street and Utility Improvement, James, Knox and 54th Avenues NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that: 1. The work completed under said contract is accepted and approved according to the following schedule: As Amended Per Final Project Costs Low Bid As Final Contract $395,447.05 $395,447.05 Contingencies 39,544.95 26,934.94 Change Order No. 1 6,467.63 Construction Cost $434,992.00 $428,849.62 2. The actual value of the work performed is $6,142.38 less than the original contract plus contingencies and approved Change Order No. 1. 3. It is hereby directed that final payment be made on said contract, taking the Contractor's receipt in full. The total amount to be paid for said improvement under said contract shall be $428,849.62. Date Mayor ATTEST: Deputy 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. Council Meeting Date 6/26/95 3 City of Brooklyn Center Agenda Item Number Request For Council Consideration is Item Description: RESOLUTION ACCEPTING WORK PERFORMED AND APPROVING FINAL PAYMENT, IMPROVEMENT PROJECT NOS. 1994 -11 AND 12, CONTRACT 1994 -F, STREET AND UTILITY IMPROVEMENT, NORTHWEST AREA Department Approval: C Diane Spector, Director f blic Servic s Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Recommended City Council Action: A resolution accepting work performed and authorizing final payment to Thomas & Sons Construction is attached for consideration. • Summary Explanation: (supporting documentation attached ) Contract 1994 -F has been completed by Thomas & Sons Construction. The City Council accepted their bid per Resolution No. 94 -103 and a contract was subsequently executed. The actual final value of their work, $1,182,253.17 is $18,710.17 less than the executed contract plus approved Change Order No. 1 due to use of approved recycled aggregate base material. Thomas & Sons Construction has several punch list items to repair or replace prior to release of the final payment to them. P P P P PY • r Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ACCEPTING WORK PERFORMED AND APPROVING FINAL PAYMENT, IMPROVEMENT PROJECT NOS 1994 -11 AND 12, CONTRACT 1994 -F, STREET AND UTILITY IMPROVEMENT, NORTHWEST AREA WHEREAS, pursuant to written contract signed with the City of Brooklyn Center, Minnesota, Thomas and Sons Construction has satisfactorily completed the following improvement in accordance with said contract: Improvement Project Nos. 1994 -11 and 12, Contract 1994 -F, Street and Utility Improvement, Northwest Area NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that: 1. The work completed under said contract is accepted and approved according to PP g the following schedule: As Amended Per Final Project Costs Low Bid As Final Contract $1,188,311.69 $1,169,601.52 Change Order No. 1 12,651.65 12,651.65 Construction Cost $1,200,963.34 $1,182,253.17 2. The actual value of the work performed is $18,710.17 less than the original contract plus approved Change Order No. 1. 3. It is hereby directed that final payment be made on said contract, taking the Contractor's receipt in full. The total amount to be paid for said improvement under said contract shall be $1,182,253.17. Date Mayor ATTEST: Deputy 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. Council Meeting Date 06 /26/995 31 City of Brooklyn Center Agenda Item Number 6 Request For Council Consideration • Item Description: RESOLUTION DECLARING A PUBLIC NUISANCE AND ORDERING THE REMOVAL OF DISEASED TREES Department Approval: Diane pector, Director o blic Services Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Recommended City Council Action: It is recommended the Council adopt the attached resolution. • Summary Explanation: (supporting documentation attached ) The attached resolution represents the official Council action required to expedite removal of the trees most recently marked by the City tree inspector, in accordance with approved procedures. It is anticipated that this resolution will be submitted for council consideration each meeting during the summer and fall as new trees are marked. • Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION DECLARING A PUBLIC NUISANCE AND ORDERING THE REMOVAL OF DISEASED TREES (ORDER NO. DST 06/26/95 ) WHEREAS, a Notice to Abate Nuisance and Diseased Tree Removal Agreement has been issued to the owners of certain properties in the City of Brooklyn Center giving the owners twenty (20) days to remove diseased trees on the owners' property; and WHEREAS, the City can expedite the removal of these diseased trees by declaring them a public nuisance: NOW, THEREFOR, BE IT RESOLVED BY THE CITY COUNCIL of the City of Brooklyn Center, Minnesota that: 1. The diseased trees at the following addresses are hereby declared to be a public nuisance: TREE PROPERTY OWNER PROPERTY ADDRESS NUMBER ---------------------- - - - - -- ----------------------- - - - - -- -- - - - - -- TODD & JOYCE BREUER 5113 PAUL DR 39 THOMAS & JOANN STUMM 5219 HOWE LN 40 SUSAN GARLOFF 7013 DREW AVE N 41 NANCY DALLIN 6818 PERRY AVE N 42 ROBERT & MARJORIE BUSHEY 4218 WINCHESTER LN 43 WML & GWEN WELLNER, JR. 5444 DUPONT AVE N 44 CITY OF B.C. ARBORETUM 45 CITY OF B.C. ARBORETUM 46 2. After twenty (20) days from the date of the notice, the property owner(s) will receive a second written notice providing five (5) business days in which to contest the determination of the City Council by requesting, in writing, a hearing. Said request shall be filed with the City Clerk. 3. After five (5) days, if the property owner fails to request a hearing, the tree(s) shall be removed by the City. All removal costs, including legal, financing, and administrative charges, shall be specially assessed against the property. RESOLUTION NO. Date Mayor ATTEST: Deputy 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. Council Meeting Daze 6/26/95 3 City of Brooklyn Center Agenda Item Number 6 / Request For Council Consideration Item Description: RESOLUTION REJECTING BIDS FOR BROOKLYN DRIVE SANITARY SEWER MANHOLE REPAIR, CONTRACT 1995 -G, IMPROVEMENT PROJECT NO. 1995 -11 Department Approval: Scott A. Brink, Uity E 'ineer Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Recommended City Council Action: A resolution which rejects the bids received for this project and directs city staff to re- evaluate the project and recommend a course of action to present to the City Council at a later date. • Summary Explanation: (supporting documentation attached No ) Bids for contract 1995 -G were received on June 8, 1995. This contract consists of the repair of a sanitary sewer manhole and the replacement of approximately 16 feet of sewer pipe that enters the manhole. This project is intended to supplement Contract 1995 -E, corrugated metal pipe sanitary sewer trunk relining. The Council previously approved plans and specifications and authorized advertising for bids on May 22, 1995. The bid results are as follows: Bidder Bid Amount Lametti and Sons, Inc. $49,050.00 Thomas and Sons $82,284.50 The previously established Engineer's Estimate for the construction cost of this project was $18,900.00. Obviously, the bids received greatly exceeded the estimate. The following reasons can be attributed to this discrepancy: 1. Only two bids were received. The small number received is not typical of most public bid • projects and the lack of competition and interest for the project clearly is reflected in the prices. 2. The nature of the work is such that sheet piling must be installed to protect the existing roadway and neighborhood properties. The cost to install sheeting submitted by the bidders greatly exceeds the expected cost typically submitted for similar projects. Request For Council Consideration Page 2 3. While the actual repair of the manhole itself and installation of new materials is not exceedingly costly, the labor and man hours required for the work are disproportionate and • excessive in relation to the actual finished product received. This is due largely to the depth of the manhole and the City's desire to maintain local traffic and protect adjacent properties during construction. Despite the cost submitted for the repairs, the total combined cost for the manhole repair and the sanitary sewer relining ($793,318.00), based on the low bids received, is still well below the total Engineer's Estimate for the project of $1,078,00. However, staff is of the opinion that the manhole repair costs, based on the bids received is excessive in comparison to the benefits gained. We have therefore been exploring other potential alternative solutions that may provide the same benefit and result at a more reasonable cost. At this time however, we are not yet prepared to offer a definite alternative and cost. The following course of action is recommended for consideration by the Council: 1. Reject the bids as submitted. 2. Direct staff to present the City Council a report on July 10, 1995. This report would recommend any available alternatives and subsequent course of action. • • Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION REJECTING BIDS FOR BROOKLYN DRIVE SANITARY SEWER MANHOLE REPAIR, CONTRACT 1995 -G, IMPROVEMENT PROJECT NO. 1995- 11, WHEREAS pursuant to Resolution -11 e following i w p 95 9, th g b ds were received and opened on June 8, 1995, for Improvement Project No. 1995 -11, Contract 1995 -G, Brooklyn Drive Sanitary Sewer Manhole Repair: Bidders Bid Amount Lametti and Sons, Inc. $49,050.00 Thomas and Sons $82,284.50 WHEREAS, it is the opinion of the City Council that the best interests of the City P ty of Brooklyn Center will be served by rejecting the bids received on the basis of the prices over greatly exceeding the Engineer's Estimate; and WHEREAS, it appears that other more feasible alternatives for the manhole repair may be available upon further investigation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that: 1. The bids submitted by Lametti and Sons, Inc. and Thomas and Sons are hereby rejected. 2. The City Engineer is hereby directed to investigate other feasible repair alternatives and submit a report to the City Council on July 10, 1995, 3. The Deputy City Clerk is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids. RESOLUTION NO. Date Mayor ATTEST: Deputy 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. Council Meeting Date June 26. 1995 City of Brooklyn Center Agenda Item Number / Request For Council Consideration • Item Description: Approving transfer of Class B and Sunday On -Sale Intoxicating Liquor License from Larken, Inc. DBA Holiday Inn, Brooklyn Center to Richardson Properties Inc., Operating As A Holiday Inn Franchise Department Approval: Scott Kline, Chief of Police Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Recommended City Council Action: The City Council approve transfer of a Class B and Sunday On -Sale Intoxicating Liquor License from Larken, Inc., dba Holiday Inn, Brooklyn Center to Richardson Properties Inc., Operating As A Holiday Inn Franchise. • Summary Explanation: (supporting documentation attached T� Larken, Inc. applied for and received a Class B and Sunday On -Sale Intoxicating Liquor License for the establishment located at 2200 Freeway Blvd within the City of Brooklyn Center. Larken, Inc. as the leasee has been the holder of the liquor license and their lease will expire July 1, 1995. Richardson Properties Inc. is a corporation that is wholly owned by James Richardson & Sons, Ltd., an international corporation (Richardson Properties Inc. will be their Minnesota corporation), which built the original hotel at its current site, and until July 1, 1995 they have leased out the management rights to the site to Larken, Inc. Richardson Properties Inc. has terminated Larken's management rights /lease July 1, 1995 and Richardson Properties Inc. will now be directly in charge of the hotel operations using a Holiday Inn franchise. Richardson Properties Inc. is the entity applying for and requesting transfer of the liquor license from Larken, Inc. to Richardson Properties Inc. James Richardson & Sons, Ltd., is the parent of many diverse enterprises employing more than 3,500 people in Canada, the United States, the United Kingdom, the Caribbean and the Far East. The corporation will be paying off the mortgage on the hotel as of July 1, 1995 and the hotel will be clear in the corporation's name. • During a detailed background investigation on Richardson Properties Inc., nothing was found in any of the background checks which would preclude this transfer from occurring. The current manager will be remaining in his position and has been backgrounded previously. lam/ Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION APPROVING TRANSFER OF CLASS B AND SUNDAY ON- SALE INTOXICATING LIQUOR LICENSE FROM LARKEN, INC. DBA HOLIDAY INN BROOKLYN CENTER TO RICHARDSON PROPERTIES INC., OPERATING AS A HOLIDAY INN FRANCHISE WHEREAS, Larken, Inc. has been issued and is currently the holder of a Class B and Sunday On -Sale Intoxicating Liquor License for the establishment located at 2200 Freeway Blvd within the City of Brooklyn Center; and WHEREAS, Larken, Inc. as leasee and holder of the liquor license will have their management rights lease expire July 1, 1995; and WHEREAS, Richardson Properties Inc., wholly owned by James Richardson & Sons, Ltd, (the original builder of the hotel at its current site) has terminated Larken's management rights lease and Richardson Properties will now become directly in charge of the hotel operations using a Holiday Inn franchise and is requesting transfer of the liquor license from Larken, Inc. to Richardson Properties Inc.; and WHEREAS, a thorough background investigation was conducted by the Brooklyn Center Police Department regarding the corporate officers and the corporation itself and nothing was found in that investigation that would preclude the transfer of the liquor license to Richardson Properties Inc.; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the transfer of a Class B and Sunday On -Sale Intoxicating Liquor License from Larken, Inc. to Richardson Properties Inc., Operating As A Holiday Inn Franchise is hereby approved. Date Mayor ATTEST: Deputy 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. Council Meeting bate June 38, 1593 3 City of Brooklyn Center Agenda Item Numbe Request For Council Consideration • Item Description: Licenses Department Approval: JL,Izv - k� Sharon Knutson, Deputy City Clerk Manager's Review /Recommendation: I No comments to supplement this report Comments below /attached Recommended City Council Action: Approve attached list of licenses. Summary Explanation: (supporting documentation attached Yes • • City of Brooklyn Center Licenses to be approved by the City Council on June 26, 1995: AMUSEMENT DEVICES - OPERATOR Beacon Bowl 6525 West River Road Chi -Chi's Restaurant 2101 Freeway Blvd. Davanni's 5937 Summit Drive Metropolitan Transit 6845 Shingle Creek Pkwy. _ Nickels and Dimes, Inc. 1328 Brookdale Center City Cler ) 4k_ AMUSEMENT DEVICES - VENDOR CDL 1317 Highway 169 Mendota Valley Amusement, Inc. 9177 E. Courthouse Blvd. Ct. h> ddLn�_ City Clerk ZJ'�— GARBAGE AND REFUSE COLLECTION K & S Sanitation 24 Crossway Drive Randy's Sanitation P. O. Box 169, Delano Super Cycle, Inc. 775 Rice Street Walter's Recycling & Refuse Service P. O. Box 49128 Waste Management - Blaine 10050 Naples Street NE Woodlake Sanitation Service 9813 Flying Cloud Drive City 40e �- MECHANICAL SYSTEMS Dean's Heating & Air Conditioning Inc. 2597 309th Ave NW Building Official RENTAL DWELLINGS Initial: Allan D. Olson 7112 Riverdale Road N. Renewal: Lyndon and Carole Carlson 5819 Halifax Ave. N. Craig and Barbara Benell 1807 70th Ave. N. Director of U0 S Community Development General Approval: Sharon Knutson, Deputy City Clerk Council Meeting Date 6-26 -95 3 City of Brooklyn Center Agenda Item Number O Q Request For Council Consideration • Item Description: Planning Commission Application No. 94016 submitted by Brookdale Covenant Church. Department Approval: i 4 Ronald A. Warren, Planning and Zoning Specialist Manager's Review /Recommendati No comments to supplement this report Comments below /attached Recommended City Council Action: This application was recommended for approval by the Planning Commission at its June 15, 1995 meeting subject to conditions of approval. • Summary Explanation: (supporting documentation attached ) Planning Commission Application No. 94016 submitted by Brookdale Covenant Church. Request for a Special Use Permit and Site and Building Plan Approval to construct a 12,500 square foot recreation room addition to the existing church located at 5139 Brooklyn Boulevard. The Planning Commission recommended approval of this application at its June 15, 1995. Attached are minutes, information sheets, and maps from that meeting. i Planning Commission Information Sheet Application No. 94016 Applicant: Brookdale Covenant Church Location: 5139 Brooklyn Boulevard Request: Special Use Permit/Site and Building Plan Approval The applicant is seeking site and building plan approval and an amendment to their special use permit to construct a 12,500 sq. ft. addition to the Brookdale Covenant Church, 5139 Brooklyn Boulevard. The addition will consist of a gymnasium /recreation area, kitchen, rest rooms, entry and narthex area as well as additional classroom space. The proposed new addition will be to the south side of the existing church building. The plan also includes the removal of the church parsonage located to the west of the church building to make room for relocated and additional parking. The property in question is zoned R -1 (one family residence) and churches and their accompanying uses are classified as special uses in this zoning district. The subject site is a triangular shaped parcel located to the south of the Brooklyn Boulevard /T.H. 100 interchange. It is bounded by the Brooklyn Boulevard frontage road on the east; T.H. 100 on the west; and the Malmborg greenhouse property, which is zoned R -3 (multiple family residence) to the south. This application was first considered by the Planning Commission at its December 8, 1994 meeting and was tabled and continued until the Commission's January 12, 1995 meeting. The Planning Commission wished to obtain input and comments from the City Attorney regarding a proposed city /church agreement to keep access open between North Lilac Drive and the Brooklyn Boulevard frontage road. The Commission had also expressed concerns about a possible sign ordinance variance request, which had been mentioned at that meeting, as well as concerns about a damaged metal drainage outlet pipe at the north end of the property and recommendations for curbing around the site. The Planning Commission's attention is directed to the attached Planning Commission Information Sheet, from the 12 -08 -94 meeting as well as pages four through seven of the 12 -08 -94 Planning Commission minutes relating to this application. I have had the opportunity to review this proposal with the City Attorney, specifically with respect to an agreement between the city and the church to leave a public way connection between North Lilac Drive and the Brooklyn Boulevard frontage road. The Commission's attention is directed to the options pointed out on page two of the 12 -08 -94 Information Sheet relating to keeping this connection open. The City Attorney has also pointed out that the city could pursue statutory provisions that would allow an adverse possession type action to designate this area as a public roadway because it has been used and maintained continuously for six years by the road authority. Under such circumstances, the roadway width would be limited to that which was actually used. This would be a width of 20 ft. to 30 ft. depending on the location. A normal right -of -way width for a marginal access road such as this is 50 ft. of right -of -way with a 24 ft. wide surface. In addition, a 15 ft. green strip would need to be established before allowing parking. Pursuing this connection as a public street would result in a potential loss of 40 to 80 parking stalls on the proposed plan and would mean the church would not be allowed to make their proposed recreation area expansion. 6 -15 -95 1 Most of the traffic using this roadway is church traffic. The staff believes it is important to keep this connection open to the public, however, it would not have to be kept open with a public street dedication. There is a limited amount of non - church traffic using this roadway connection. The Public Services Director estimates about 12 trips per day other than church a related traffic. We also benefit in this area open for emergency vehicles such as see a be keeping t s ar P g P b y police, fire and ambulances. Having this connection also makes snowplowing in this area more direct rather than backtracking in order to plow North Lilac Drive and the Brooklyn Boulevard frontage road. There are good reasons for keeping this connection open, but it would not have to be as a public street. The City Attorney agrees and believes an appropriate agreement can be drafted between the parties to protect both interests. Because the traffic is limited, the 90 degree parking off of the public way connection should not pose a safety problem anymore than would 90 degree parking accessing a 24 ft. drive lane serving a commercial or church parking lot. We would recommend that there be no parking signs installed along the westerly side of the drive lane so as to keep this drive lane open to through traffic. With respect to the agreement, it should be acknowledged that this area will be kept open to the public. We would recommend that the city continue to plow the roadway connection while the church would be responsible for other maintenance of the roadway. As with private roads in townhouse developments, the city would want a provision to allow it to go on the property for purposes of maintenance if the church fails to do so, and we would also want the ability to assess the costs of such maintenance if necessary. Sealcoating maintenance costs are about $1500.00 ever six to seven years. The drainage outlet pipe, which is in need of repair, provides drainage for the north end of the church property to the highway right -of -way. The Public Services Director proposes a sharing between the city and the church in the cost of repairing this outlet. It is estimated that the cost of repair will be approximately $5000.00, $2500.00 of which would be he church's responsibility. It is still the staff's recommendation that curb and gutter be provided as parking protection and around areas where walkways and landscaping are to be provided. Also, the 15 ft. green strip requirements can be met along the Brooklyn Boulevard frontage road and still allow the church to meet the minimum parking requirements of 120 on -site parking stalls for a 360 seat church. Regarding the question of signery, the church is allowed to have one 36 sq. ft. freestanding sign, not to exceed 10 ft. in height, along each of its street abutments, or it could have one 72 sq. ft. sign, not to exceed 15 ft. in height. They are also entitled to have one 36 sq. ft. wall sign. It appears that the church can live within these sign parameters according to a conversation I had with Wayne Westburg. If not, the church can seek a sign ordinance variance which could be granted only if they meet the variance standards contained in the sign ordinance. This would have to be pursued in a separate sign variance procedure requiring a public hearing and recommendation by the Planning Commission and a final determination by the City Council. These matters were all conveyed to representatives of the church, and they have responded with a revised plan. The parking lot layout is somewhat different than that previously reviewed particularly at the very north end of the site. The plan also reflects the true conditions for the drop off area along the northside of the church. Their plan calls for 121 parking spaces, which is one more than required for the 360 seat church building. Landscaping has been revised based 6 -15 -95 2 on changes to the parking area and amounts to the same as previously provided. Fifteen foot greenstrips are provided along the Brooklyn Boulevard right -of -way. Curb and gutter is to be • included around the parking lot protection areas and where the 15 foot greenstrips are to be added. The revised plans are in order. We would recommend approval of the application subject to the following conditions: 1. The building plans are subject to review and approval by the Building Official with respect to applicable codes prior to the issuance of permits. 2. Grading, drainage and utility plans are subject to review and approval by the City Engineer prior to the issuance of permits. 3. A site performance agreement and supporting financial guarantee (in an amount to be determined by the City Manager) shall be submitted prior to the issuance of permits to assure completion of all site improvements. 4. Any outside trash disposal facilities and rooftop mechanical equipment shall be appropriately screened from view. 5. The building addition 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. Plan approval is exclusive of all signery, which is subject to Chapter 34 of the i city ordinances. 7. The applicant shall enter into an agreement with the city to be approved by the City Attorney, to allow a public way connection between North Lilac Drive and the Brooklyn Boulevard frontage road through the church property. Said agreement shall address the manner in which this area shall be kept open and maintained and shall be filed with the title to the property prior to the issuance of building permits. 8. The special use permit is granted to the applicant for the expansion of this church facility as provided in the approved site plan. Any other expansions or alterations of this site shall require further amendment to the church's special use permit. 9. The special use permit is subject to all applicable codes, ordinances and regulations. Any violation, thereof, could be grounds for revocation. 10. The applicant shall share in the cost of repair and upgrading of a drainage outlet pipe serving the north end of this property. 11. The applicant shall provide appropriate on -site sediment and erosion control devices, as approved by the City Engineer during the time this project is under construction. 6 -15 -95 3 .1a 1.11w, n"cx»uul.r.cwennnl - - -- /<W■ EERINGCO. YANC I !11'Nor ",,N K N AIF. SURVEYING dI / '"TMUNeo. N ■y„ " ���' " C10 ' r. "� a..11 /...La1 - 1 ♦. s�pts• ,•,O 1 sllAUyfQ& BROOKDALE COVENANT \\ If \ W&YLYLIL fapr.bn a. wa outTe¢ 0<rbr 1W, 1cvIWI o<al»rn,1l... / 1 erroKwo,�F t � Ai ce1C111rr1oN ! II I h I m Q— of h NmAbr Garen d f IN, 10, T-61P 11 /, ILy.11. HI-pW ' r pm Can ,-114 d<sAb<d . bb. N !KI^ I r IIpawld W.nactlr dhauWyIb<drbd!N d / 1 .. dlwNye..7 N°. w °..w�.x.er,.w.ew,.w+awle.. .. L.64.2 .N.d /• �,/ �t �, 1 I. Nrda.a Q— di- sit d d 4 tab h .onn.sr mmr armt Arw Fa a.l whwere,l/ IW d h ddl dw/d1aN IliPlmry W. 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ARCHITECT STEVE ERBAN (S 12) 430 -0320 BROOKOALE COVENANT CHURCH BROOKLYN CENTER. MN 17.26 A tdo .109 NO. 94726 Planning Commission Information Sheet Applicant No. 94016 Applicant: Brookdale Covenant Church Location: 5139 Brooklyn Boulevard Request: Special Use Permit/Site and Building Plan Approval The applicant is seeking site and building plan approval and an amendment to their special use permit to construct a 12,500 square foot addition to the Brookdale Covenant Church, 5139 Brooklyn Boulevard. The addition will consist of a gymnasium /recreation area, kitchen, restrooms, entry and narthex area as well as additional classroom space. The new addition will be to the south side of the existing church building. The plan also includes the removal of the church parsonage located to the west of the church building to make room for relocated and additional parking. The property in question is zoned R1 (one - family residence) and churches and their accompanying uses are classified as special uses in this zoning district. The subject site is a triangular shaped parcel located to the south of the Brooklyn Boulevard /TH100 interchange. It is bounded by the Brooklyn Boulevard frontage road on the east; TH100 on the west; and the Malmborg Greenhouse property, which is zoned R3 (multi- residential), to the south. ACCESS /PARKING • Access to this property is gained through 3 curb openings off the Brooklyn Boulevard frontage road on the east and from N a _ _ North Lilac Drive on the west. The r� ht f w r b o ay for North Lilac Drive ends at the very southwest corner of the church property, however, a connection from this point to the Brooklyn Boulevard frontage road through the church property has been maintained for over 30 years. In fact, the City has plowed and maintained this area as a public way through the years without easement or dedication of ri -of -way. Apparently there was a handshake agreement many years ago for this arrangement as there are no documents to be found that formalize it. The Church intends to modify its parking arrangement with the addition being constructed over a large portion of the south parking lot serving the Church. As mentioned, they plan to remove the parsonage and provide parking along the west side of the church building. The ordinance parking requirement for churches is based on seating capacity, one parking space for every 3 seats. No other parking requirement is applied. It should be noted that additional parking has not been required with other church additions for gymnasium /recreational areas, classrooms and meeting rooms because, generally, these areas are not utilized to a great extent while church services are going on. Conversely, church services are generally not conducted when the other facilities are being utilized. Therefore, the off street parking requirement for the Brookdale Covenant Church is 120 spaces (360 _ 3). • The Church has provided us with two parking plans. One is a proof of parking showing the Church's ability to provide a total of 146 parking spaces utilizing all of the church property, meeting zoning ordinances requirements for parking set back and 15' greenstrips off public right - of -way. This, however, would mean that the connection between North Lilac and the Brooklyn 12 -08 -94 1 Planning Commission Information i Boulevard frontage road would be eliminated or severely altered. The Engineering Department has reviewed the necessity for having a public access link between these two points and believes that it is necessary from a public safety (police and fire) standpoint. Also, traffic counts done recently in this area by the Engineering Department indicate traffic, other than church traffic, does make use of this connection between the two public streets. It is not a great traffic volume but it, nevertheless, is used by the general public. The City's options are to acquire this area for purposes of a public street; attempt to construct a street in the TH100 right -of -way with MN /DOT's approval linking North Lilac and the Brooklyn Boulevard frontage road; or work out an agreement with the church to allow public access through this area. The first option would probably mean the church could not build their proposed addition because of potential loss of at least 40, and as many as 80, parking spaces if a full public right -of -way acquisition was required. The second option would be very costly, if it were done. It seems more logical to attempt to work out an agreement that meets both the City's and the Church's needs. The second plan presented by the Church shows a proposal to keep the connection open between North Lilac and the Brooklyn Boulevard frontage road much as it is now, while expanding parking in the area for the Church's use. This proposal shows parking for 126 cars (6 more than required). However, it would contemplate 90 ° parking directly off the connecting drive and does not provide for the required 15' greenstrip and parking setbacks off the Brooklyn Boulevard frontage road. The Public Services Director has indicated that given the small amount of non - church traffic and emergency traffic utilizing this area, that she can live with this type of parking arrangement. The Church would like to see the City wave the greenstrip requirements on the Brooklyn Boulevard frontage road until alteration to that roadway necessitates them. The Public Services Director has indicated that the City would agree to continue to maintain this area, however, she believes that it should be clearly understood that the City will maintain only that portion open to the public. This will cause the Church to have to plow the area open for parking in the winter time. Other maintenance, such as sweeping would be continued. She also believes the Church should share the seal coating costs in the future. These are matters that can be worked out through an agreement between the City and the Church. The Church's second plan, provided necessary agreements can be reached, does seem to be an acceptable way of approaching the Church's addition. GRA DING /DRAINAGE /UTILITIES The Brookdale Covenant Church property is less than 3 acres in area and does not require watershed review and approval. To date, the plans do not contain elevations so that the Engineering Department can evaluate site drainage to any great extent. Drainage for the most part sheds over land to drainage ditches in the Brooklyn Boulevard frontage road right -of -way and the TH100 right -of -way. The Engineering Department reports that there is a 16" corrugated metal drainage outlet pipe at the vary north end of the church property that has been damaged and does not function properly. This should be replaced with an 18" concrete pipe with a catch 12 -08 -94 2 Planning Commission Information basin to assist drainage from the site. The applicant will need to submit further information in terms of a drainage plan so that drainage can be evaluated. Along these lines we are looking at parking lot improvements, particularly in places where new bituminous will be needed, landscape areas will be placed, or walkways and new parking areas will be provided. As mentioned, the Church proposes that they not be required to add greenstrips until alteration to the Brooklyn Boulevard frontage road would necessitate it. The zoning ordinance requires that all parking and perimeter driveway areas be set back at least 15' from the street right -of -way and that this area be maintained as a landscape or greenstrip area. Also, the zoning ordinance requires that B612 curb and gutter be provided around all driving and parking areas. One of the purposes of the curb and gutter requirement is to assist in providing positive drainage on a site. No storm sewer is located in close proximity to this property, therefore, it will continue to drain, for the most part, into existing drainage ditches. The greenstrip and curb and gutter requirements also provide for aesthetic improvements and protection for landscape, P sidewalk and parking areas. s P g . The City takes the opportunity to bring sites into compliance with ordinance requirements as much as possible when building additions are made. Parking lot improvements generally require the installation of curb and gutter as part of that improvement. The Lutheran Church of the Master recently added on to its parking lot which required the installation of curb and gutter. . They will also be required to make other site improvements as part of their PUD. I do not believe it is appropriate to forgo all greenstrip and curbing requirements. It may be possible for the Engineering Department to waive the B612 curb and gutter requirement in favor of other comparable curbing, however, curb should be provided as parking protection and around areas where walkways and landscaping are to be provided. Also, it appears that the 15' greenstrip can be provided along the Brooklyn Boulevard frontage road, especially in areas where the parking lots will be disturbed for construction of new parking facilities or where landscape areas are being provided. In reviewing the two site plans submitted, it appears that greenstrips could be provided. The parking lot south and east of the addition could have 15' greenstrips with a loss of only about 3 parking spaces. A one way drive lane east of the building would be appropriate also. It also appears that the parking lot to the northeast of the existing church, which will be modified, could accommodate 15' greenstrips by perhaps eliminating 2 or 3 parking spaces. Additional parking could also be provided in other areas. It should be remembered that the plan calls for 6 parking spaces in excess of the ordinance required 120 spaces. I would recommend that the site plan be modified to accommodate these requirements and further evaluations be done as to where curb and gutter and /or only curbing be installed. LANDSCAPING The landscape plan consists of a proposal to provide 14 shade trees, 18 coniferous trees and 20 decorative trees for a total of 278 landscape points. This site is under 3 acres. Two hundred eighty landscape points would be required for a full 3 acre site. 12 -08 -94 3 Planning Commission Information , Landscaping in a mixture of plantings is to be provided at the southwest corner of the site near North Lilac Drive. Shade trees are proposed on parking lot islands in the westerly parking lot as well as along the Brooklyn Boulevard frontage road at the north end of the site. Shade trees are called for as well to the east of the existing building, by the east entrance to the new addition and adjacent to the Brooklyn Boulevard frontage road by the south parking lot. Coniferous trees are scheduled in many of the same areas as well as 6 being provided along the west side of the existing church building, 3 by the east entrance to the new addition and 4 west of the south parking lot. Of the 20 decorative trees, 5 are proposed in the landscape area at the southwest corner of the site, 3 west of the existing church, 2 by the west entrance to the new addition, with the remainder to the east and north of the existing church. The species of trees proposed should be indicated on the landscape plan as well. BUILDING The building elevations show the roof line of the addition to be the same height over the gymnasium and the entrance /narthex area. Ramping and an elevator are proposed to get to the upper narthex area and the classroom areas above it. The entrance /narthex area will be open to skylights. A kitchen, restrooms, conversation area and entrance to the gymnasium are all on the same level. Classrooms and a mechanical room would be above the kitchen, conversation and restroom areas. Some modifications to the upper narthex level area will be done as well with new offices to be provided. The balcony will be removed in the church proper with new slope seating added to the rear in that location. The exterior of the addition will be a brick to match the existing building. The Building Official is reviewing the plans for exiting and accessibility requirements. SPECIAL USE PERMIT STANDARDS A public hearing is scheduled for the special use permit and notices of the Planning Commission's consideration have been sent. Attached for the Commission's review is a copy of Section 35 -220, Subdivision 2 of the zoning ordinance which contains the five standards for special use permits. A recommendation to approve assumes that the standards have been met. The addition of a gymnasium, kitchen, classrooms and other amenities being proposed by the Brookdale Covenant Church does not seem to be in conflict with any of the standards for special use permits contained in the zoning ordinance. Some revisions and agreements as to site improvements including greenstrips and curbing need to be indicated on the plans. If these matters can be addressed a favorable recommendation would be in order. RECOMMENDATION If the above matters can be addressed we believe a favorable recommendation could be made • to the City Council subject the following conditions: 1. The building ZD plans are subject to review and approval by the Building Official 12 -08 -94 4 Planning Commission Information with respect to applicable codes prior to the issuance of permits. 2. Grading, drainage and utilities plans are subject to review and approval by the Engineering Department prior to issuance of permits. 3. A site performance agreement and supporting financial guarantee (in an amount to be determined by the City Manager) shall be submitted prior to the issuance of permits to assure completion of all site improvements. 4. Any outside trash disposal facilities and rooftop mechanical equipment shall be appropriately screened from view. 5. The building addition 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. Plan approval is exclusive of all signery which is subject to Chapter 34 of the City ordinances. 7. A revised drainage plan shall be submitted for review and approval by the Engineering Department indicating the location of curbing on the site. 8. The plans shall be modified to provide ordinance required 15' greenstrips along the Brooklyn Boulevard frontage road. 9. The applicant shall enter into an agreement with the City approved by the City Attorney, to allow a public way connection between North Lilac Drive and the Brooklyn Boulevard frontage road through the church property. Said agreement shall address the manner in which this area shall be kept open and maintained. 10. The special use permit is granted to the applicant for the expansion of this church facility as provided in the approved site plan. Any other expansions or alterations of this site shall require further amendment to the Church's special use permit. 11. The special use permit is subject to all applicable codes, ordinances and regulations. Any violation thereof could be grounds for revocation. 12 -08 -94 5 7. An underground irrigation system shall be installed in all landscaped areas to facilitate site maintenance. 8. Site lighting shall comply with Section 35 -712 of the City ordinances and shall not cause glare beyond the boundaries of the property. 9. The landscape plan shall be modified in the following manner prior to approval by the City Council: a. To show all proposed landscaping on the landscape plan. b. Provide an additional 13.5 landscape points consistent with the landscape point system. Voting in favor: Chairperson Wilson, Commissioners Booth, Hilstrom, Holmes, Reem, and Mickelson. The motion passed. The Secretary noted that the application will be referred to the City Council at the December 19, 1994, meeting. The applicant is required to be present at the City Council meeting. If any changes or modifications are made to the plans prior to City Council consideration, they may have to be brought back before the Planning Commission for review. APPLICATION NO 94016 (BROOKDALE COVENANT CHURCH) Chairperson Willson introduced the next item of business, a request from Brookdale Covenant Church for special use permit and site and building plan approval to construct a 12,500 square foot recreation area addition to the existing church located at 5139 Brooklyn Boulevard. The Secretary presented the staff report, used overhead transparencies to show the location and detail (see Planning Commission Information Sheet for Application No. 94016, attached). Commissioner Mickelson asked that the species of trees that were to be included in the landscaping plan and also the required replacement of 18" concrete pipe with a catch basin be included in condition 2. He asked if the City Attorney had given an opinion regarding the public way connection between North Lilac Drive and the Brooklyn Boulevard frontage road through the church property. He also asked if land irrigation on this property could be required. The Secretary noted that land irrigation on church ro erties could be P P recommended but not required. He stated that the City Attorney had not been involved thus far as there had not seemed a need for legal advise. Commissioner Holmes asked if the proposed Hwy. 100 expansion would have any effect on this project. The Secretary explained that the Hwy. 100 would only be extending north on Hwy. 100 to 51st Ave. so it would not effect this project. 12 -8 -94 4 PUBLIC HEARING (APPLICATION NO 94016 Chairperson Willson asked for a motion to open the public hearing on the request from Brookdale Covenant Church at 8:47 p.m. There was a motion by Commissioner Mickelson and seconded by Commissioner Booth to open the Brookdale Covenant Church public hearing. The motion passed unanimously. Chairperson Willson asked if there was anyone present who wished to address the Commission. Mr. Wayne Westberg, Chairman of the Building Committee, Brookdale Covenant Church, stepped forward. He explained that the time line for the proposed addition, pending congregation approval of final proposal, is for construction to start in spring of 1995 and be completed in fall of 1995. He then introduced Steve Erban, the Architect working on this project. Mr. Erban presented exhibits of the finished proposed addition to the church. He pointed out the proposed signage on the large gym wall of the church. He explained that through negotiations, he and Mr. Westberg had been working with the city to retain the public access through the church property. He explained that at this time, he did not know who owned the culvert in question, so no decisions have been made on that yet. He stated that they are agreeable to the 15' setback green areas but do not think there is enough room for this on the side near the Brooklyn Boulevard Frontage Road. Commissioner Mickelson asked if it would be acceptable to them to install underground irrigation in the proposed green areas. Mr. Erban stated that this would not be necessary, as there were so many hard surfaces surrounding the green areas that the water naturally went to the green areas. The church would agree to physically maintain the green areas, if necessary. Commissioner Reem asked what would be done with the parsonage. Mr. Westberg stated that there has been discussion of moving the structure to another building site. Commissioner Mickelson asked who owned the 16" drainage outlet pipe that needed to be replaced. The Secretary explained that it was his understanding it was located on church property and that the pipe served to drain the church parking lot. He explained that for many years the City has maintained the connection between North Lilac Drive and Brooklyn Boulevard Frontage Road as a public way. If the City could reach an agreement with the Church to maintain this agreement, the church could then put 90 degree parking off of that strip. He explained that there is a low traffic volume there and the main reason to keep it open would be for public safety purposes. 12 -8 -94 5 The Secretary asked Mr. Erban to submit a more detailed drainage plan and also determine where curbs, and walkway areas would be. He advised Mr. Erban, that if the proposed sign did not meet the sign ordinance, he would have to apply for a variance. Chairperson Willson called for any more questions for the applicant or for anyone else to speak at the public hearing. CLOSE PUBLIC HEARING There was a motion by Commissioner Mickelson and seconded by Commissioner Booth to close the public hearing at 9:06 p.m. The motion passed unanimously. Chairperson Willson stated that the application should be tabled until the next PIanning Commission meeting so the members would be able to study the proposed plans and see which would work best. Commissioner Booth agreed stating that he would like to obtain the City Attorney's opinion regarding the access agreement. He also was concerned with the safety of the 90 degree parking. The Secretary explained that the first discussion with the Church regarding this project had been three -four months earlier. The Church wanted to bring their congregation a more complete plan. The Planning Commission has up to 60 days to review a special use permit ,e or a site plan. Mr. Westberg explained that the congregation annual meeting is scheduled for January 4, 1995. This is when the budget is determined and direction is set for the year. Commissioner Booth explained that there were too many inconsistencies to recommend approval of the building site plan at this time. The Secretary suggested that the Church could set the budget without Planning Commission recommendation and approval, subject to Planning Commission approval. The items to be determined were not significant in terms of cost. Mr. Erban expressed concern and asked specifically why the request was being tabled. Chairperson Willson stated that page three, items one; two and three were in question. He stated that the addition of a sign variance request had been made. The B612 curb and gutter, the north culvert and the second site plan were all in question. The Commission would also like to obtain the opinion of the City Attorney regarding the access agreement. Commissioner Hilstrom stated that she was also concerned with the safety of backing out of the 90 degree parking slots into the public access area. Mr. Erban stated that this type of parking area is used all over the State of Minnesota and the Midwest. 12 -8 -94 6 ACTION TO TABLE PLANNING APPLICATION NO 94016 (BROOKDALE COVENANT CHURCH) UNTIL JANUARY 12 1995 There was a motion by Commissioner Booth and seconded by Commissioner Mickelson to table of Application No. 94016 submitted by Brookdale Covenant Church for special use permit and site and building an approval to construct a 12 5 gP OOs square are f t foot recreation area q addition to the existing church located at 5139 Brooklyn Boulevard to the Planning Commission Meeting of January 12, 1995. Voting in favor: Chairperson Willson, Commissioners Hilstrom, Holmes, Booth, Mickelson, and Reem. The motion passed. TAX INCREMENT FINANCING PLAN Chairperson Willson introduced the next item of business, Resolution of the Brooklyn Center Planning Commission finding the establishment of the Tax Increment Financing District No. 03 (A Redevelopment District) and the Modification Housing Development and Redevelopment Project No. 1 and the adoption of the Tax Increment Financing Plan and Redevelopment Plan relating there to be consistent with the Comprehensive Plan of the City. The Secretary presented the staff report, used overhead transparencies to show the location and detail. The Secretary explained that the staff believes that the establishment of the Tax Increment ~' Financing Districts and the adoption of the Tax Increment Financing Plan are consistent with the City's Comprehensive Plan. He explained that any projects associated with the Tax Increment Financing Plan will still have to come before the Planning Commission n Commi on for P lan review and approval. Chairperson Willson asked what type of development or redevelopment the financing would be used for. Jerry Splinter, City Manager, stated that the Willow Lane Apartments were originally designated to be redeveloped to Senior Housing. A market study was done and it was determined by the City Council that this would be too risky. He explained that a minimum of 15% of the Tax Increment Funds had to be used for redevelopment. The balance can be used for other projects. He stated that the City's intention f o establishing g District g the Tax Increment Financing istnct had been sent to all four Independent School Districts. Meetings have been held with the Brooklyn Center School District official and a satisfactory agreement has been reached. The other three school districts have not responded. Commissioner Holmes inquired as to the rocess of the Tax Increment F' P t mancin .The City n' Manager explained that when a Tax Increment Financing District is established, the area in the district taxes are frozen at the current rate for a period of time. The . City then captures the increment for that period and has use of those funds for specific projects. The taxpayer 12 -8 -94 7 Ei %; X 31 ► 3AV MINN. > w, - Illl 1 .� ♦� . �. - 1 ,—I 61 NOR PDRT DR. W I I I I I 111ML N 7 l _- 3 , r A3110 c' X F N - 30 z < A13N0 '3nV OtiIA3 .' N. � 'd >( RMlCE VE. AVE. N AV 3a�NYN3 ±( bI� ZS IN LEt(E g un st, it. 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SPECIAL USE PE °.;NITS 2. Standards for Special Use Permits A special use permit may be granted by the City Council after demonstration by evidence that all of the following are met: • (a) The establishment, maintenance or operation of the special use will promote and enhance the general welfare and will not be detrimental to or endanger the public health, safety, morals, or comfort. (b) The special use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor substantially diminish and impair property values within the neighborhood. (c) The establishment of the special use will not impede the normal and orderly development and improvement of surrounding property for uses permitted in the district. (d) Adequate measures have been or will be taken to provide ingress, egress and parking so designed as to minimize traffic congestion in the public streets. (e) The special use shall, in all other respects, conform to the applicable re of the district in which it is located. 3. Conditions and Restrictions The Planning Commission may recommend and the City Council may impose such conditions and restrictions upon the establishment, location, construction, maintenance and operation of the special use as deemed necessary for the protection of the public interest and to secure compliance with requirements specified in this ord- inance. In all cases in which special use permits are granted, the City Council may require such evidence and guarantees as it may deem necessary as part of the conditions stipulated in connec- tion therewith. 4. Resubmission No application for a special use permit which has been denied by the City Council shall be resubmitted for a period of twelve (12) months from the date of the final determination by the City Council; except that the applicant may set forth in writing newly discovered evidence of change of condition upon which he relies to gain the consent of the City Council for resubmission at an earlier time. 5. Revocation and Extension of Special Use Permits When a special use permit has been issued pursuant to the pro- visions of this ordinance, such permit shall expire without further action by the Planning Commission or the City Council unless the applicant or his assignee or successor commences work upon the sub- ject property within one year of the date the special use permit is granted, or unless before the expiration of the one year period the applicant shall apply for an extension thereof by filling out and submitting to the Secretary of the Planning Commission a "Special Use Permit" application requesting such extension and paying an additional fee of $15.00. Special use permits granted pursuant to the provisions of a prior ordinance of Brooklyn Center shall expire within one year of the effective date of this ordinance if construction upon the sub - ject property pursuant to such special use permit has not commenced within that time. In any instance where an existing and established special ned p cial use is abandoned for a period of one year, the special use permit re- lated thereto shall expire one following the date of abandon- ment. MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION • OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION JUNE 15, 1995 CALL TO ORDER The Planning Commission met in regular session and was called to order by Chairperson Willson at 7:35 p.m. ROLL CALL Chairperson Tim Willson, Commissioners Donald Booth, Mark Holmes, Dianne Reem, Graydon Boeck, and Kathryn Palm. Also present were the Secretary to the Planning Commission Planning and Zoning Specialist Ronald Warren, and Planning Commission Recording Secretary Ruth McLaurin. Commissioner Robert Mickelson was excused from the meeting. APPROVAL OF MINUTES - MAY 25 1995 There was a motion by Commissioner Booth and seconded by Commissioner Holmes to approve the minutes of the May 25, 1995 Planning Commission meeting as submitted. The motion passed with Chairperson Willson and Commissioner Palm abstaining. The Secretary requested to move on to Other Business. OTHER BUSINESS The Secretary noted the Four Courts Apartment Complex on Northway Drive east of Xerxes, is under new owners and will be renovated. The Secretary indicated the building was constructed in 1968 or 1969 and contains approximately 280 units. The complex will be renovated throughout with new decks and other improvements. The Secretary indicated the new owners have requested a permit for building a new rental office. The rental office would be approximately 1,200 square feet. The Secretary g indicated a building permit has been issued for the construction of the rental office. The Secretary added site plans will not come before the Planning Commission, but he wanted to inform the Planning Commission of the rental office construction. He noted renovations will be consistent with Building Maintenance Ordinance standards and licensing provisions. The Secretary indicated Evangelical Lutheran Church of the Master had in October applied and received approval of a Planned Unit Development for phased incorporation of three apartment buildings into use by the Church. 6 -15 -95 1 The Secretary indicated the Church wishes to amend the PUD. He indicated Pastor . Cottingham wished to physically connect the first building with the main Church building with an enclosed walkway. The Secretary briefly reviewed the application with the Commissioners, using overhead transparencies. He indicated the original approval was for the first building, this amendment would be in keeping with the PUD, although it was not specifically addressed in the original approval. The Secretary indicated the Building Official has reviewed the plans for a 10 foot enclosed walkway, and proposed no concerns. Commissioner Holmes inquired as to the reason behind the request. The Secretary indicated the request is for the capability of building the walkway without a major amendment to the original PUD. The Secretary indicated the Commissioners would need to establish if this amendment would be a minor amendment or a major amendment. The Secretary referred to Subdivision 5d of Section 35 -355 of the Ordinance regarding PUD. The Secretary believes this would be a minor amendment. Commissioner Booth indicated by reviewing the square footage of the walkway, it would not exceed 5% as stated in the ordinance. Commissioner Boeck indicated this walkway is merely convenience and also agreed that it would be a minor amendment. Chair Willson also concurred that it would be a minor amendment and in keeping with the original approval. The Secretary inquired if the Commission felt it necessary for renotification of this amendment. By consensus the Commission felt it unnecessary for additional notification. There was a motion by Chair Willson and seconded by Commissioner Boeck to recommend to the City Council that the request of the Evangelical Lutheran Church of the Master for a walkway connection be considered a minor amendment to the Planned Unit Development requiring no additional review. The motion passed unanimously. CHAIRPERSON'S EXPLANATION Chairperson Willson explained the Planning Commission is an advisory body. One of the Commission's functions is to hold public hearings. In the matters concerned in these hearings, the Commission makes recommendations to the City Council. The City Council makes all final decisions in these matters. 6 -15 -95 2 APPLICATION NO. 94 -16 BROOKDALE COVENANT CHURCH Chairperson Willson introduced the first item of business, a request from Brookdale Covenant Church for a Special Use Permit and Site and Building Plan approval to construct a 12,500 square foot recreation area addition to the existing church located at 5139 Brooklyn Boulevard. The Secretary noted this matter was first considered and tabled by the Planning Commission on December 8, 1994 and was reschedule for Commission review on January 12, 1995 at which time the applicant requested the manner be tabled. It is now before the Commission with a revised plan for disposition. The Secretary presented the staff report, used overhead transparencies to show the location and detail (see Planning Commission Information Sheet for Application No. 94016, attached). Commissioner Reem inquired if reconstruction of Highway 100 would be an issue. The Secretary indicated it was his understanding the reconstruction of Highway 100 will not occur for quite some time, so at present it is not an issue. He indicated the project has been taken off the priority list by the State. Commissioner Booth inquired as to ownership of culvert. The Secretary indicated it would be located within the right -of -way. The Secretary also indicated responsibilities will also be noted in the development agreement. Chair Willson requested a change to condition number 10, stating: "...share equally with the Ci1y, in the cost of repair, maintenance, and upgrading..." Commissioner Boeck inquired if there would be a concern for setting a precedent for maintaining private property, in regards to the connection to Brooklyn Boulevard. He indicated he believed this is for the safety and welfare of the City and should be maintained. The Secretary indicated shared costs are proposed. The Secretary indicated he was not concerned with setting a precedent, due to the unique circumstances of the connection. Commissioner Palm inquired as to the locations of curb and gutter. The Secretary using the overhead transparencies pointed out the locations. Commissioner Holmes inquired if there should be a condition identifying the construction of curb and gutter to be B -612. The Secretary indicated this could be condition number 12. Commissioner Holmes also inquired as to required signage regarding parking. Commissioner Palm also suggested a traffic sign to slow traffic down near the Church. Commissioner Boeck inquired if the sign would limit speed. Chair Willson indicated the Planning Commission should proceed with caution regarding the traffic sign, he suggested a sign stating "slow" would be more appropriate. 6 -15 -95 3 Commissioner Booth inquired as to the clarity of condition number seven. The Secretary indicated the City Attorney will review the agreement. The Secretary noted he will forward any concerns the Commissioners may have. There was a motion made Commissioner Booth and seconded by Commissioner Boeck to recommend approval of Application No.940016 submitted by Brookdale Covenant Church subject to the following conditions: 1. The building plans are subject to review and approval by the Building Official with respect to applicable codes prior to the issuance of permits. 2. Grading, drainage and utility plans are subject to review and approval by the City Engineer prior to the issuance of permits. 3. A site performance agreement and supporting financial guarantee shall be submitted prior to the issuance of permits to assure completion of all site improvements. 4. Any outside trash disposal facilities and rooftop mechanical equipment shall be appropriately screened from view. 5. The building addition 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 ordinance. 6. Plan approval is exclusive of all signery, which is subject to Chapter 34 of the city ordinances. 7. The applicant shall enter into an agreement with the city to be approved by the City Attorney, to allow a public way connection between North Lilac Drive and Brooklyn Boulevard frontage road through the church property. Said agreement shall address the manner in which this area shall be kept open and maintained and shall be filed with the title to the property prior to the issuance of building permits. 8. The special use permit is granted to the applicant for the expansion of this church facility as provided in the approved site plan. Any other expansions or alterations of this site shall require further amendment to the church's special use permit. 9. The special use permit is subject to all applicable codes, ordinances and regulations. Any violation, thereof, could be grounds for revocation. 10. The applicant shall share equally with the City in the cost of repair, maintenance, and upgrading of a drainage outlet pipe serving the north end of this property. 6 -15 -95 4 11. The applicant shall provide appropriate on -site sediment and erosion control devices, as approved by the City Engineer during the time this project is under construction. 12. All required curbing shall be B -612 construction. 13. The applicant shall provide no parking signs along the westerly side of the driveway connection between North Lilac Drive and the Brooklyn Boulevard frontage road. Cautionary sign may be appropriate in this location as well. The motion passed unanimously. The Secretary noted that the application will be referred to the City Council at the June 26, 1995 meeting. The applicant is required to be present at the City Council meeting. If any changes or modifications are made to the plans prior to City Council consideration, they must be brought back before the Planning Commission of review. OTHER BUSINESS Chair Willson indicated just a reminder for the individual who delivers the packet to not put it into the mail box. The Secretary indicated he would forward the reminder. Commissioner Booth indicated he would like to receive the City Council agenda once again. The Secretary indicated he would check to see if the City Council agenda can be provided to the Planning Commission. ADJOURNMENT There was a motion by Commissioner Boeck and seconded by Commissioner Booth to adjourn the meeting of the Planning Commission. The motion passed unanimously. The Planning Commission adjourned at 8:42 p.m. Chairperson Recorded and transcribed by: Ruth McLaurin TimeSaver Off Site Secretarial 6 -15 -95 5 Council Meeting Date 6 -26 -95 31 City of Brooklyn Center Agenda Item Numbe Request For Council Consideration • Item Description: City Council determination that the Lutheran Church of the Master's proposed modification to the first phase of their Planned Unit Development is a minor amendment. Department Approval: Ronald A. Warren, Planning and Zonin Specialist Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Recommended City Council Action: It is recommended that the City Council concur with the Planning Commission recommendation and determine that the Lutheran Church of the Master's proposed modification to the first phase of their Planned Unit Development to construct a 10 ft. wide covered walkway connection is a minor • amendment requiring no additional review. Summary Explanation: (supporting documentation attached ) On November 14, 1994 the City Council adopted resolution No. 94 -244, which approved Planning Commission Application No. 94009 submitted by the Lutheran Church of the Master. This proposal involved that rezoning of the church property and three apartment properties located immediately to the east of the church to PUD -Rl and the approval of a development proposal to incorporate the three apartment buildings into a full church use over a phased, or staged, period of time. The first phase, which the church has already undertaken, involves the use of the apartment building closest to the church, addressed as 1107 Emerson Lane, as a learning facility for children and youth of the church. The building has been modified and is being used for Sunday School classes and evening confirmation classes. The church would now like to make a connection between the church and the learning facility by creating a 10 ft. wide covered walkway between the two buildings. This proposal, although briefly discussed, was not indicated on the development plans for the first phase approval. The development agreement between the city and the church allows no new buildings and changes to the exterior dimensions of the existing buildings without approval of a Planned Unit Development amendment by the City Council. Section 35 -355, Subdivision 5 of the city ordinances outlines the procedure and requirements for development plan review under the Planned Unit Development process. • Subdivision 5i requires major plan amendments to be approved by the City Council following the original notice and hearing procedures which would involve a full scale review by both the Planning Request For Council Consideration Page 2 Commission and City Council. The same subdivision allows the City Council to determine a plan amendment to be minor if approved by the Planning Commission after such notice and hearing as may • be determined appropriate by the Planning Commission. Subdivision 5d outlines the parameters for determining if an amendment is major or minor. Attached for the City Council's review is a copy of the proposed enclosed walkway connection. The Planning Commission reviewed this matter at their June 15, 1995 meeting and their consideration can be found on the bottom of page 1 through page 2 of those minutes (attached). The commission recommends that the church's request for a walkway connection be considered a minor amendment to the Planned Unit Development requiring no additional review. The commission also did not believe it to be necessary to have additional notice of hearing. • • 35 -355 e. The uniqueness of each PUD requires that specifications standards for streets, utilities, public facilities and the a approval la subdivision may be subject to modifications from the City Ordinances pp land generally governing them. The City Council may, therefore, approve streets, utilities, public facilities and land subdivisions which are not in compliance with usual specifications or ordinance requirements where it is found that such are not required in the interests of the residents or of the City. Subdivision 5. Application and Review. a. Implementation of a PUD shall be controlled by the development plan. The development plan may be approved or disapproved by the City Council after evaluation by the Planning Commission. Submission of the development plan shall be made to the Director of Planning and Inspection on such forms and accompanied by such information and documentation as the City may deem necessary or convenient, but shall include at a minimum the following: 1. Street and utility locations and sizes; 2. A drainage plan, including location and size of pipes and water storage areas; 3. A grading plan; 4 . A landscape plan; 5. A lighting plan; 6 A plan for timing nd h . g phasing of the development, 7. Covenants or other restrictions proposed for the regulation of the development; 8. A site plan showing the location of all structures and parking areas; 9. Building renderings or elevation drawings of all sides of all buildings to be constructed in' at least the first phase of development; and 10. Proposed underlying zoning classification. or classifications. Such information may be in a preliminary form, but shall be sufficiently complete and accurate to allow an evaluation. of the development by the City. 35 -355 b. The Planning Commission shall hold a public hearing on the development plan. Notice of such public hearing shall be published in the official newspaper and actual notice shall be mailed to the applicant and adjacent property owners as required by Section 35 -210 of this ordinance. The Planning Commission shall review the development plan and make such recommendations as it deems appropriate regarding the plan within the time limits established by Section 35 -210 of this ordinance. C. Following receipt of the recommendations of the Planning Commission, the. City Council shall hold such hearing as it deems appropriate regarding the matter. The City Council shall act upon the development plan within the time limits established by Section 35 -210 of this ordinance. Approval of the development plan shall constitute rezoning of the property to PUD and conceptual approval of the elements of the plan. In addition to the guidelines provided in Section 35 -208 of this ordinance, the City Council shall base its actions on the rezoning upon the following criteria: 1. Compatibility of the plan with the standards, purposes and intent of this section; 2. Consistency of the plan with the goals and policies of the Comprehensive Plan; 3. The impact of the plan on the neighborhood in which it is to be located; and 4. The adequacy of internal site organization, uses, densities, circulation, parking facilities, public facilities, recreational areas, open spaces, and buffering and landscaping. The City Council may attach such conditions to its approval as it may determine to be necessary o better er accom lish the purposes district, p p poses of the PUD d. Prior to construction on any site zoned PUD, the developer shall seek Plan approval pursuant to Section 35 -230 of this ordinance. In addition to the information specifically required by Section 35 -230, the developer shall submit such information as may be deemed necessary or convenient by the City to review the consistency of the proposed development with the approved development plan. The plan submitted for approval pursuant to Section 35 -230 shall be in substantial compliance with the approved development plan. Substantial compliance shall mean that buildings, parking areas and roads are in essentially the same location as previously approved; the number of dwelling units, if any, has not increased or decreased by more than 5 percent; the floor area of nonresidential areas has not been increased or decreased by more than 5 percent; no building has been increased in the number of floors; open space has not been decreased or altered from its original design or use, and lot coverage of any individual building has not been increased or decreased by more than 10 percent. 35 -355 e. Prior to construction on any site zoned PUD, the developer shall execute a development agreement in a form satisfactory to the City. f. Applicants may combine development plan approval with the plan approval required by Section 35 -230 by submitting all information required for both simultaneously. g. After approval of the development plan and the plan approval required by Section 35 -230, nothing shall be constructed on the site and no permits s building P hall be issued except in conformity nformity with the approved plans. h. If within 12 months following approval by the City Council of the development plan, no building permits have been obtained or, if within 12 months after the issuance of building permits no construction has commenced on the area approved for the PUD district, the City Council may initiate rezoning of the property. i. Any major amendment to the development plan may be approved by the City Council following the same notice and hearing procedures specified in this section. An amendment shall be considered major if it involves any change greater than that permitted by subdivision 5d of this section. Changes which are determined by the City Council to be minor may be made if approved by the Planning Commission after such notice and hearing as may be deemed appropriate by the Planning Commission. " AVENUE rvoRr EVANGELICAL LUTHE -'- - -- 297.09 ! I I I I I 4 r I r I _ Z I I I ! w W \ l I N Z 4 J • ui > N ( (i I Q cr- OENO(E4 IROII !Y'IiWatJfi I I ui SCALE IN FEET 3 !iii LLJ 40 0 40 80 z I i EMERSON ..LANE NORTH 'j 3 WEST-- I - 49� f _ f fkC• �'" 11tt4yGRAH &ULI ' RW aF Zl1E HPs'( A Ott- 9L I6 - R - b N. uom I S �F I Y �� F N G� V- N LLI L- - UTtlCtl 1 "JRa1NA& e-A4tmtAr t� a \�\ - -_.... N 71 LLI C I J F I a�ou4 Ili 17� III z I� i �� I I `,, � �, Y — rrz•4mrr vna(�!er. I b It �i� r' I Nr uao O I T Q I II I dLL— -- — 467.14 WEST -- 7.00' — - - 154.12 WEST--- - �✓ + {�' `uGnlAl.• /i� SI "E / I MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION JUNE 15 CALL TO ORDER The Planning Commission met in regular session and was called to order by Chairperson Willson at 7:35 p.m. ROLL CALL Chairperson Tim Willson, Commissioners Donald Booth, Mark Holmes, Dianne Reem, Graydon Boeck, and Kathryn Palm. Also present were the Secretary to the Planning Commission Planning and Zoning Specialist Ronald Warren, and Planning Commission Recording Secretary Ruth McLaurin. Commissioner Robert Mickelson was excused from the meeting. APPROVAL OF MINUTES - MAY 25 1995 There was a motion by Commissioner Booth and seconded by Commissioner Holmes to approve the minutes of the May 25, 1995 Planning Commission meeting as submitted. The motion passed with Chairperson Willson and Commissioner Palm abstaining. The Secretary requested to move on to Other Business. OTHER BUSINESS The Secretary noted the Four Courts Apartment Complex on Northway Drive east of Xerxes, is under new owners and will be renovated. The Secretary indicated the building was constructed in 1968 or 1969 and contains approximately 280 units. The complex will be renovated throughout with new decks and other improvements. The Secretary indicated the new owners have requested a permit for building a new rental office. The rental office would be approximately 1,200 square feet. The Secretary indicated a building permit has been issued for the construction of the rental office. The Secretary added site plans will not come before the Planning Commission, but he wanted to inform the Planning Commission of the rental office construction. He noted renovations will be consistent with Building Maintenance Ordinance standards and licensing provisions. The Secretary indicated Evangelical Lutheran Church of the Master had in October applied and received approval of a Planned Unit Development for phased incorporation of three apartment buildings into use by the Church. 6 -15 -95 1 The Secretary indicated the Church wishes to amend the PUD. He indicated Pastor Cottingham wished to physically connect the first building with the main Church building with an enclosed walkway. The Secretary briefly reviewed the application with the Commissioners, using overhead transparencies. He indicated the original approval was for the first building, this amendment would be in keeping with the PUD, although it was not specifically addressed in the original approval. The Secretary indicated the Building Official has reviewed the plans for a 10 foot enclosed walkway, and proposed no concerns. Commissioner Holmes inquired as to the reason behind the request. The Secretary indicated the request is for the capability of building the walkway without a major amendment to the original PUD. The Secretary indicated the Commissioners would need to establish if this amendment would be a minor amendment or a major amendment. The Secretary referred to Subdivision 5d of Section 35 -355 of the Ordinance regarding PUD. The Secretary believes this would be a minor amendment. Commissioner Booth indicated by reviewing the square footage of the walkway, it would not exceed 5% as stated in the ordinance. Commissioner Boeck indicated this walkway is merely convenience and also agreed that it would be a minor amendment. Chair Willson also concurred that it would be a minor amendment and in keeping with the original approval. The Secretary inquired if the Commission felt it necessary for renotification of this amendment. By consensus the Commission felt it unnecessary for additional notification. There was a motion by Chair Willson and seconded by Commissioner Boeck to recommend to the City Council that the request of the Evangelical Lutheran Church of the Master for a walkway connection be considered a minor amendment to the Planned Unit Development requiring no additional review. The motion passed unanimously. CHAIRPERSON'S EXPLANATION Chairperson Willson explained the Planning Commission is an advisory body. One of the Commission's functions is to hold public hearings. In the matters concerned in these hearings, the Commission makes recommendations to the City Council. The City Council makes all final decisions in these matters. 6 -15 -95 Council Meeting Date 6/26/95 Q� 3 City of Brooklyn Center Agenda Item Number U �� Request For Council Consideration • Item Description: Comprehensive Annual Financial Report for the Year Ended December 31, 1994 Department Approval: Gk;�,Le�;e N a,n.4.� Charlie Hans e , Fipanc e Director Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Recommended City Council Action: Approval of the reports. summary Explanation: (supporting documentation attached ) Representatives of the City's auditors, Deloitte & Touche LLP, will be at the June 26, 1995 City • Council meeting to present the financial reports and the results of the annual audit. Included in the agenda packets are the following reports: Comprehensive Annual Financial Report Schedule of Federal Financial Assistance Auditor's Letter to the City Council Management Letter Responses to the Auditor's Management Letter • COMPREHENSIVE ANNUAL FINANCIAL REPORT of the CITY OF BROOKLYN CENTER, MINNESOTA For The Year Ended December 31 , 1994 Prepared by THE DEPARTMENT OF FINANCE Charles R. Hansen, Director (Member of Government Finance Officers Association of the United States and Canada) City of Brooklyn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1994 TABLE OF CONTENTS Exhibit Page Number Number Title Page I. INTRODUCTORY SECTION Table of Contents i - iv City Officials 1 Organization Chart 2 Finance Director's Letter 3 - 11 Certificate of Achievement 12 II. FINANCIAL SECTION Independent Auditors' Report 13 A. General Purpose Financial Statements (Combined Statements - Overview) : Combined Balance Sheet - All Fund Types and Account Groups 1 15 & 16 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 2 17 Combined Statement of Revenues, Expenditures- and Changes in Fund Balances - Budget And Actual - General and Special Revenue Funds 3 18 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - Proprietary Fund Types 4 19 Combined Statement of Cash Flows - Proprietary Fund Types 5 20 Notes to Financial Statements 21 - 48 i i City of Brooklyn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31. 1994 i TABLE OF CONTENTS Statement/ Schedule Page Number Number B. Combining, Individual Fund and Account Group Financial Statements and Schedules: General Fund: Balance Sheet A-1 50 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual A-2 51 Schedule of Revenue & Other Financing Sources - Budget and Actual S-1 52 - 53 Schedule of Expenditures - Budget and Actual S-2 54 - 58 Special Revenue Funds: Combining Balance Sheet B-1 60 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B-2 61 - 62 Debt Service Funds: Combining Balance Sheet C-1 64 Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 65 Capital Projects Funds: Combining Balance Sheet D-1 67 Combining Statement of Revenues, Expenditures and Changes in Fund Balances D-2 68 Project-Length Schedule of Construction Projects - Capital Improvements Fund S-3 69 Project-Length Schedule of Construction Projects - Municipal State Aid Construction Fund S-4 70 i Project-Length Schedule of Construction Projects - Special Assessment Construction Fund S-5 71 ii City of Brooklyn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1994 TABLE OF CONTENTS Statement/ Schedule Page Number Number Enterprise Funds: Combining Balance Sheet E-1 73 & 74 Combining Statement of Revenues, Expenses and Changes in Retained Earnings E-2 75 & 76 Combining Statement of Cash Flows E-3 77 & 78 Statement of Revenues, Expenses, and Changes in Retained Earnings - Municipal Liquor Fund E-4 79 Statement of Revenues, Expenses, and Changes in Retained Earnings - Golf Course Fund E-5 80 Statement of Revenues, Expenses, and Changes in Retained Earnings - Earle Brown Heritage Center Fund E-6 81 Statement of Revenues, Expenses, and Changes in Retained Earnings - Recycling & Refuse Fund E-7 82 Statement of Revenues, Expenses, and Changes in Retained Earnings - Water Utility Fund E-8 83 Statement of Revenues, Expenses, and Changes in Retained Earnings - Sanitary Sewer Fund E-9 84 Statement of Revenues, Expenses, and Changes in Retained Earnings - Storm Drainage Fund E-10 85 Internal Service Funds: Combining Balance Sheet F-1 87 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings F-2 88 Combining Statement of Cash Flows F-3 89 Agency Funds: Statement of Changes in Assets and Liabilities - Employee Deferred Compensation Fund G 91 General Fixed Asset Account Group: Schedule of Changes in General Fixed Assets by Sources S-6 93 111 City of Brooklyn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1994 TABLE OF CONTENTS Statement/ Schedule Page Number Number Schedule of General Fixed Assets By Function and Activity S-7 94 Schedule of Changes in General Fixed Assets By Function and Activity S-8 95 General Long-Term Debt Account Group: Comparative Statement of General Long-Term Debt H 97 Summary of Debt Service Requirements to Maturity I 98 III. STATISTICAL SECTION Table Page Number - Number General Governmental Expenditures by Function 1 100 General Governmental Revenues and Other Financing Sources by Source 2 101 Tax Levies and Tax Collections 3 102 Assessed Value and Estimated Market Value of All Taxable Property 4 103 Direct and Overlapping Tax Rates and Tax Levies 5 104 Special Assessment Billings and Collections �! 6 105 Ratio of Net Bonded Debt to Assessed Value and Net Debt Per Capita 7 106 Computation of Legal Debt Margin 8 107 Computation of Direct and Overlapping Debt 9 108 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 10 109 Schedule of Revenue Bond Coverage 11 110 Property Value, Construction and Bank Deposits 12 ill Principal Taxpayers 13 112 Schedule of Insurance Coverage 14 113-114 Demographic Statistics 15 115 Miscellaneous Statistical Facts 16 116-117 iv City of Brooklyn Center_ CITY OFFICIALS For the Year Ended December 31, 1994 ELECTED OFFICIALS Term of Office Term Expires Mayor Myrna Kragness Four Years 12/31/98 12/31/96 Councilmember Barbara Kalligher F our Years Councilmember Kristen Mann Four Years 12/31/96 Councilmember Kathleen Carmody Four Years 12/31/98 Councilmember Debra Hilstrom Four Years 12/31/98 APPOINTED OFFICIALS C y g City Manager Gerald G. Splinter City Clerk Gerald G. Splinter City Treasurer Charles R. Hansen City Attorney Holmes & Graven City Prosecutor Carson & Clelland Department Heads: Community Development Brad Hoffman Finance Charles R. Hansen Fire/Emergency Preparedness Ronald Boman Police Scott Kline Public Works Diane Spector Assessing Mark Parish Asst. City Manager/Personnel Coordinator Nancy Gohman City Engineer Scott Brink Civil Defense Coordinator Ronald Boman Fire Marshall Ronald Boman Health Officer Duane Orn, M.D. Liquor Stores Gerald Olson Public Works Superintendent Dave Peterson Recreation Arnold Mavis - 1 - City of Brooklyn Center Organization 1994 ELECTORATE City Council Advisory Commissions Administration Purchasing City Attorney .................... - City Manager Human Resources N Elections Licenses City Clerk PUBLIC SERVICES FIRE DEPARTMENT POLICE DEPARTMENT LNANA L SERVICES COMMUNITY -Fire Prevention -Patrol DEVELOPMENT -Engineering -Investigation g-Street Mnt ce -Fire Supression -Assessing -Emer en Pre -Crime Prevention-Sanity Sewer 9 cY paredness ing -Inspections rY -Community Programs a ement -EDAJHRA -Centrel Garage -Support Services ent Information Services -Zoning -Govt Bldgs -Dispatch res -EBHC -Storm Sewer -Water Dept -Planning -Park Mntce -Recreation Programs -Community Center -Golf Course II i City of Brooklyn Center A great place to start. A great place to stay. June 12 , 1995 I Honorable Mayor and City Council Members City of Brooklyn Center jDear Mayor Kragness and City Council Members: Submitted herein is the Comprhensive Annual Financial Report of the City of Brooklyn Center, Minnesota for the fiscal year ended December 31, 1994 . This report has been prepared following the guidelines recommended by the Government Finance Officers Association of the United States and Canada. The Government Finance Officers Association awards Certificates of Achievement for Excellence in Financial Reporting to those governments whose Comprehensive Annual Financial Reports are judged to conform substantially with high standards of public financial reporting, including generally accepted accounting principles promulgated by the Governmental Accounting Standards Board. Our financial reports for the past eleven years have received this award. It is our belief that the accompanying report meets program standards, and it will be submitted to the Government Finance Officers Association for review. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position, results of operations, and cash flows of the various funds and account groups of the city. All disclosures necessary to enable the reader to gain an understanding of the government's financial activities have been included. The comprehensive annual financial report is presented in three sections: introductory, financial, and statistical. Included in the introductory section is this transmittal letter, the government's organizational chart and a list of principal officials. The financial section includes the general purpose financial statements and the combining and individual fund and account group financial statements and schedules, as well as the independent auditors' report on the financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi year basis. The City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and U. S. Office of Management and Budget Circular A-128 , "Audits of State and Local Governments" . Information related to this single audit, including the schedule of federal financial assistance, 6301 Shingle Creek P kw y B r ookl y n Center MN 55430-2199 City & TDD Number(612) 569-3300 Recreation and Community Center Phone & TDD Number (612) 569-3400 •FAX(612) 569-3494 An Affirmative Action/Equal Opportunities Employer findings and questioned costs, and independent auditors' on the internal control structure and compliance with applicable laws and regulations, is issued as a separate report. REPORTING ENTITY The financial reporting entity includes all funds and account groups of the primary government (i.e. , the City of Brooklyn Center as legally defined) , as well as all of its component units. Component units are legally separate entities for which the primary government is financially accountable. Blended component units, although legally separate entities, are, in substance, part of the primary government's operations and are included as part of the primary government. Accordingly, Economic Development Authority and Housing and Redevelopment Authority are reported as capital project funds of the City of Brooklyn Center. The City provides a full range of municipal services including public safety (police and fire) , streets, sanitation, social services, culture-recreation, public improvements, planning and zoning, and general administrative services. The City also operates three off-sale liquor stores, a public water and sewer utility, a golf course, and a convention center known as the Earle Brown Heritage Center. ECONOMIC CONDITION AND OUTLOOK "The Twin Cities ranks among the largest metropolitan economies in the nation, having achieved status as a major national regional center, " according to a Metropolitan Council report. Brooklyn Center is a first ring suburb located in the northwestern corner of Minneapolis-St. Paul metropolitan area. Its commercial district is anchored by the Brookdale Shopping Center which was built in the 1960s. Other retail and commercial businesses have grown up around the center and vacant land exists to the northeast for a substantial amount of additional business development. The business district is located at the intersection of four major highways which make it a very attractive location. Commercial and industrial property comprises 58% of the City's taxable net tax capacity. There are five major shopping centers located in the City in addition to a large number of retail establishments including K-Mart, Kohl's Department Store, Toys R Us, Jerry's New Market and Builders Square. The largest commercial property in the City is Brookdale Mall, an 1, 000, 000 square-foot regional shopping center anchored by Daytons, Sears, Penny's and Mervyns. Brookdale Square, a 125, 000 square-foot strip center is occupied by Circuit City and the Drug Emporium. The remaining three major shopping centers include Shingle Creek Center, a 157 , 000 square-foot three building center anchored by Target; Westbrook Mall, an 88, 000 square-foot center anchored by Dayton's - 4 - Home Store; and Brookview Plaza, a 70, 000 square-foot center anchored by Best Buy and Office Max. MAJOR EVENTS OF 1994 The City retained BRW Inc. to study and provide a definitive plan for shaping the image and the utilization of the Brooklyn Boulevard Corridor over the next twenty years. Over the years, Brooklyn Boulevard has been undergoing a transformation from a low-density residential street to a major commercial arterial. Along with this change have come pressures to accommodate more traffic and intensify the land uses along the Corridor. The intent of the study was to create a practical plan which will provide realistic and comprehensive guidelines for the future development of the Corridor. In conjunction with the Brooklyn Boulevard Study, the City coordinated a project with Metropolitan Council Transit Operations for a park and ride facility on the corner of I-694 and- Brooklyn Boulevard. The City also completed the reconstruction of 69th Avenue and Brooklyn Boulevard and purchased properties along Brooklyn Boulevard to assist in future redevelopment. The City public works garage is undergoing extensive remodeling and is expected to be completed in the spring of 1995. The garage houses the City's street, park, vehicle maintenance and public utilities operations. The project is estimated to cost $1. 6 million. Funding for the project is from the Capital Improvements, Water and Sewer funds. Earle's, a unique special occasion restaurant opened in April 1994 at the Earle Brown Heritage Center. The restaurant brings gourmet country cuisine to the North Metro Area. The City is in the process of completing two comprehensive street and utility improvements for the City. These improvements were funded by general obligation bonds sold during 1994 and include the Special Assessments Construction Fund and Storm Drainage Fund. FINANCIAL INFORMATION Management of the City 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 and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. - 5 - Single Audit. As a recipient of federal, state and county financial assistance, the City also is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management and the independent auditors. As a part of the City's single audit, which was described earlier, tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the City has complied with applicable laws and regulations. The results of the City's single audit for the fiscal year ended December 31, 1994 provided no instances of material weaknesses in the internal control structure or significant violations or material instances of noncompliance with applicable laws and regulations. Budgeting Controls. In addition, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual budget appropriation approved by the City's governing body. Activities of the general fund and special revenue funds are included in the annual appropriated budget. Project-length financial plans are adopted for the capital projects funds. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by department. Appropriations lapse at year end and generally are not reappropriated as part of the following year's budget. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. General Fund Functions. The following schedule presents a summary of general fund budgeted revenues for 1995, and actual revenues for the fiscal year ended December 31, 1994, compared to 1993 . General Fund Revenues & Other Financing Sources 1994 Increase 1995 1994 1993 -Decrease BUDGET ACTUAL ACTUAL From 1993 ---------- ---------- ---------- --------- Taxes $6, 376, 165 $5,703,773 $5, 006,710 $ 697, 063 License & permits 296,400 317, 620 300,480 17, 140 Intergovernmental revenue 3,479, 626 3, 353 , 247 3, 167, 214 186,033 Charges for services 893 , 732 825,959 838 , 883 -12 ,924 Court fines 112 , 000 113 , 573 140, 104 -26,531 Misc. revenues 200, 000 241, 570 279, 211 -37, 641 Other financing sources 100, 000 190, 000 295, 000 -105, 000 ----------- ----------- ----------- --------- TOTAL $11,457, 923 $10,745,742 $10, 027, 602 $ 718, 140 ----------- ----------- ----------- - - 6 - Revenues and other financing sources for the General Fund totaled $10, 745, 742 in 1994, an increase of $718, 140 from the previous year. From the table above, it is apparent that the major sources of revenue available for funding of general governmental functions are taxes and intergovernmental revenue, which when combined, provide 84% of the total revenues. The principal sources of intergovernmental aid to the City are homestead and agricultural credit aid of $1, 286, 780 and local government aid of $1, 757, 227 . Other financing sources decreased $105, 000 when compared to the prior year. In the 1994 budget, the City eliminated the use of certificates of indebtedness resulting in significant interest savings. The following schedule presents a summary of general fund budgeted expenditures for 1995, and actual expenditures for the fiscal year ended December 31, 1994, compared to 1993 . General Fund Expenditures 1994 Increase 1995 1994 1993 -Decrease BUDGET ACTUAL ACTUAL From 1993 General Govt $1, 882 , 240 $1, 692 , 268 $1, 560, 674 $ 131, 594 Public Safety 4,882, 085 4, 409,490 3 ,870, 563 538, 927 Public Works 1, 560, 386 1,230, 565 1,756, 187 -525, 622 Community Sery 40, 860 41,495 41, 325 170 Parks & Recr 2, 333 , 701 2 , 055,479 1, 999, 270 56, 209 Economic Development 187, 625 199, 982 178, 703 21, 279 Non-departmental 571, 026 312,779 . 300, 803 11, 976 ------ --------- ---------- -------- TOTAL $11,457, 923 $9, 942, 058 $9, 707, 525 $ 234, 533 ---------- --------- ---------- -------- Expenditures for the General Fund totaled $9;942, 058 in 1994, an overall increase of less than 2 . 5% when compared to 1993 . Public Safety expenditures increased primarily because of additional personnel costs and the new central garage fees. Public Works expenditures decreased primarily because of personnel costs being charged to capital project funds for improvement projects and the transfer of the vehicle maintenance operation to the Central Garage Internal Service Fund. GENERAL FUND BALANCE The fund balance, after an equity transfer of $200, 000 to the Central Garage Internal Service Fund, increased by $603 , 684 or 13 . 1% in 1994 . The ending fund balance of $5, 214, 413 is the equivalent of five months of expenditures for the 1995 budget. Property taxes and inter-governmental revenue represent 86% of the budgeted general fund revenue for 1995. The State of Minnesota has structured city finances so most of these revenues are received in - 7 - the second half of the fiscal year. Minnesota cities typically receive as little as 10% of their total revenues in the first six months of the year. In recognition of this fact, a portion of the fund balance is being designated for working capital. The unreserved undesi g nated fund balance is zero as a result of this designation. The City compensates all employees upon termination for unused vacation and one third of unused sick time. Such pay is accrued as a liability and an expenditure/expense as it is earned in all funds. ENTERPRISE OPERATIONS The City's enterprise operations are comprised of seven separate and distinctive activities: Liquor stores, Golf Course, Earle Brown Heritage Center, Recycling, Water utility, Sanitary Sewer utility, and Storm Drainage utility. The liquor operation is composed of three stores. Two are city owned and one is leased. In January 1994 , a new 5 year lease was signed for the third store, which secures favorable lease rates. Centerbrook Golf Course began operating in 1988 and recorded operating profits from 1990 through 1993 . A combination of a major maintenance project and the transfer of equipment to the Central Garage caused an operating loss in 1994 . Profitability is expected to return in 1995. Green fees have been increasing each year to keep pace with inflation. The Earle Brown Heritage Center is a pioneer farmstead which has been historically preserved and restored as a modern multipurpose facility. Its convention center can host conferences, trade shows, and concerts seating 1, 000 people in either banquet or theater style. The Inn On The Farm is a bed and breakfast with eleven rooms available to complement convention activities or to be rented individually. Several of the barns have been restored as unique office settings which have found a niche in the market. The City's policy for this enterprise is to set fees and user charges at a level which allows the operations to break-even excluding depreciation on contributed assets. The dwindling supply of landfill space for the disposal of garbage has become a major concern in Minnesota. State and county mandated goals for the diversion of garbage to recycling programs took effect in 1989 . In response, the City opened a Recycling and Refuse Fund as an enterprise fund. So far it is operating a recycling program. Expansion into garbage collection will take place when there is clear advantage to be achieved by it. Goals for the recycling program are being met. The Water and Sanitary Sewer utilities are largely developed and already reach all parts of the City. Rates for both water and - 8 - sanitary sewer are being increased each year to cover inflation and the need for new capital outlays. Three-fourths of the sewer operating expenses are fees paid to the Metropolitan Waste Control Commission for sewage treatment. Planned rate increases should be sufficient to keep them both profitable. During the 1980s, the State of Minnesota passed legislation that requires cities to take greater responsibility for controlling storm water runoff. In response to this, the City created a Storm Drainage Utility Fund. Its fee structure is based upon the amount of water discharged into the storm sewer system. INTERNAL SERVICE FUNDS The Central Garage Fund was established to own and maintain all operating equipment of the City. At present, the fund maintains some 160 pieces of rolling and non-rolling stock equipment with a book value of $1, 953, 771. Equipment maintenance, repair, fuel, and replacement costs are provided from rental rates which the Central Garage Fund charges City operating departments for the use of the equipment. AGENCY FUND The Deferred Compensation Agency Fund accounts for the I.C.M.A. Retirement Corporation plan with a market share value totaling $2 , 635,726 for City employee plan members at year end. DEBT ADMINISTRATION At December 31, 1994, the City had a number of debt issues outstanding. These issues include $2, 605, 000 of general obligation state aid street bonds, $1, 010, 000 of special assessment debt with government commitment, $1, 830, 000 of general obligation revenue bonds and $14, 085, 000 of general obligation tax increment bonds. The City maintained its A-1 rating from Moody's Investors Service. The City issued $1,830, 000 of revenue bonds and $835, 000 of special assessment bonds in 1994 to provide construction proceeds for various improvement projects in the City. CASH MANAGEMENT The Finance Department keeps abreast of current trends and procedures for cash management and forecasting so as to ensure efficient and profitable use of the City's cash resources. Cash is invested only in investments authorized by Minnesota Statutes Chapter 475. The yield on investments ranged from a high of 8 . 24 percent to a low of 4. 12 percent. Interest earned during 1994 amounted to $1, 568, 375 compared to $1, 912 ,587 during 1993 . The - 9 - City adopted a written investment policy in 1990. The policy's objectives are to minimize credit and market risk, provide needed liquidity, and maintain a competitive yield on the portfolio. All deposits were either insured by federal depository insurance or collateralized. Investment securities are held in a custody arrangement with a bank trust department. All investments are listed in the lowest credit risk category, Category 1. Cash balances for all funds of the City are maintained on a combined basis and invested, to the extent possible, in short-term securities. Earnings from securities are allocated to the various funds in proportion to their relative cash book balances. In the recent past, the City hasn't needed to use any short-term debt and doesn't anticipate such a need in the future. The City hasn't purchased any collateralized mortgage obligations, derivatives, or interest only strip investments. Our practice is to hold investments to maturity. The only reason to sell prior to maturity would be an unforeseen cash flow need. In the past two years, there have been no occasions where investments were sold prior to maturity. Of the City's portfolio as of December 31, 1994, 45% matures within 1 year, another 22% in the second year, 17% in the third year, 15% in the fourth year, and the last 1% in the fifth year. RISK MANAGEMENT The City insures all significant risk. A schedule of such insurance is included in the Statistical Section. INDEPENDENT AUDIT The City Charter and State Statutes require the Council to provide for an audit of the financial transactions of' the City. Deloitte & Touche LLP has been retained for that purpose and their unqualified opinion has been included in this report. CERTIFICATE OF ACHIEVEMENT The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Brooklyn Center for its comprehensive annual financial report for the fiscal year ended December 31, 1993 . In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. - 10 - A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. ACKNOWLEDGEMENTS The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated services of the entire staff of the Department, with special recognition to Theresa Eichten, Accountant. We would like to express our appreciation to all members of the Department. We would also like to thank the Mayor, City Council members and the City Manager for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner, and the independent auditors for their valuable and willing assistance. Respectfully submitted, Charles R. Hansen Director of Finance Timothy R. Johnson Assistant Director of Finance - 11 - Certificate of Achievement for Excellence in Financial Reporting Presented to City of Brooklyn Center, Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1993 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. i Q�ar'OFiHE �N(TEO � STATES'�q w= ANO :y CANA°A V CORPORAAON ° President f ]EAL/� CHICAst Executive Director Deloifte & bucheLLP /\ 400 One Financial Plaza Telephone:(612)397-4000 120 South Sixth Street Facsimile: (612)397-4450 Minneapolis,Minnesota 55402-1844 INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the City Council of the City of Brooklyn Center,Minnesota We have audited the accompanying general purpose financial statements of the City of Brooklyn Center, Minnesota(the City)as of December 31, 1994 and for the year then ended,listed in Section HA of the foregoing table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards,issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining,on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management,as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion,such general purpose financial statements present fairly,in all material respects,the financial position of the City of Brooklyn Center,Minnesota at December 31, 1994 and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying combining and individual fund and account group financial statements and schedules listed in the foregoing table of contents,which are also the responsibility of the City's management,are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City. Such financial statements and schedules have been subjected to the auditing procedures applied in our audit of the general purpose financial statements and,in our opinion,are fairly stated in all material respects when considered in relation to the general purpose financial statements taken as a whole. ( 7z7� April 17, 1995 Deloittebuche Tohmatsu International City of Brooklyn Center, Minnesota GENERAL PURPOSE FINANCIAL STATEMENTS The general purpose financial statements are intended to provide a financial overview of municipal operations. These reports are at a summary level and include that data needed to control and analyze current operations to determine compliance with legal and budgetary limitations and to assist in the financial planning process. - 14 - City of Brooklyn Center XHE IBIT 1 All Fund Types and Account Groups COMBINED BALANCE SHEET (Continued next page) December 31,1994 Fiduciary Totals Governmental Fund Types Proprietary Fund Types Fund Types Account Groups (Memorandum Only) General General Special Debt Capital Internal Fixed Long-Term December 31, General Revenue Service Projects Enterprise Service Agency Assets Debt 1994 1993 ASSETS AND OTHER DEBITS Cash,cash equivalents and investments (Notes 2&3) $6,071,449 $53,189 $1,505,385 $9,845,647 $4,922,337 $3,840,501 $26,238,508 $24,311,553 Receivables: Accounts 42,150 280,572 69,192 970,738 3,027 1,365,679 1,082,393 Delinquent taxes(Note 1K) 237,996 9,648 247,644 191,149 Special assessments: Deferred 21,010 445,415 1,018,095 61,886 1,546,406 1,538,827 Delinquent 1,145 7,922 46,181 3,590 58,838 43,068 Due from other funds(Note 11) 103,066 103,066 147,584 Due from other governments 21,841 65,816 1,968,764 940,091 2,996,512 1,969,190 Inventories and supplies(Note 1G) 328,575 17,874 346,449 319,790 Prepaid expenses 143,157 143,157 153,342 Ln Interfund advances(Note 11) 105,074 1,902,053 2,007,127 1,958,087 r Restricted investments(Note 1H) 4,182,719 1,000,000 4,000,000 9,182,719 9,184,451 Restricted receivables 473,344 473,344 Investments for deferred compensation plan-at market(Note 13) $2,635,726 2,635,726 2,532,735 Property,plant and equipment(Note 4) 36,170,962 3,936,720 $12,985,809 53,093,491 49,921,592 Less accumulated depreciation (8,203,431) (1,982,949) (10,186,380) (9,398,500) Amount available In Debt Service Funds $5,688,104 5,688,104 5,846,719 Amount to be provided for General Long- Term Debt 12,011,896 12,011,896 11,798,281 Total Assets and Other Debits $6,478,510 $421,732 $6,141,441 $15,962,646 $39,811,249 $5,815,173 $2,635,726 $12,985,809 $17,700,000 $107,952,286 $101,600,261 (See notes to financial statements) i I City of Brooklyn Center Exhibit 1 All Fund Types and Account Groups COMBINED BALANCE SHEET (Continued from prior page) December 31,1994 Fiduciary Totals Governmental Fund Types Proprietary Fund Types Fund Types Account Groups Memorandum Only General General Special Debt Capital Internal Fixed Long-Term December 31, LIABILITIES,EQUITY AND OTHER CREDITS General Revenue Service Projects Enterprise Service Agency Assets Debt 1994 1993 Liabilities Accounts payable $266,152 $19,414 $72,258 $383,627 $15,751 $757,202 $746,724 Contracts payable 127,485 127,485 Due to other governments 44,132 97,973 142,105 81,913 Due to other funds(Note 11) 65,816 37,250 103,066 147,584 Accrued salaries and wages 109,902 4,585 32,321 209,441 356,249 387,445 Accrued vacation&sick pay(Note 11) 526,755 18,640 48,399 21,099 614,893 598,591 Accrued interest payable 37,760 37,760 Temporary improvement notes(Note 3) 1,624,344 1,107,541 389,205 3,121,090 2,713,882 Deferred revenue 317,156 22,155 $453,337 3,042,688 3,835,336 3,442,432 Interfund loans(Note 11) 698,143 1,308,984 2,007,127 1,958,087 Liabilities payable from restricted assets 54,710 54,710 State aid street bonds payable(Note 5) $2,605,000 2,605,000 2,750,000 Special assessment debt with government commitment(Note 5) 1,010,000 1,010,000 275,000 Tax increment bonds payable(Note 5) 14,085,000 14,085,000 14,620,000 Revenue bonds payable(Note 5) 1,830,000 1,830,000 Deferred compensation funds held for $2,635,726 2,635,726 2,532,735 participants(Note 13) r ' r Total Liabilities 1,264,097 2,527,845 453,337 4,410,447 4,085,006 246,291 2,635,726 17,700,000 33,322,749 30,254,393 rn 1 Equity and Other Credits Contributed capital(Note 6) 21,187,660 4,114,355 25,302,015 24,718,109 Investment in general fixed assets $12,985,809 12,985,809 12,260,340 Retained earnings: Reserved: Debt Service 90,625 90,625 Special assessments 65,476 65,476 90,148 Plant expansion(Note 1 H) 4,000,000 4,000,000 4,000,000 Unreserved 10,382,482 1,454,527 11,837,009 10,432,117 Fund Balances(Deficits): Reserved: Debt service 5,688,104 5,688,104 5,846,719 Unexpended appropriations 223,951 223,951 679,551 Dedicated housing account(Note 1H) 1,000,000 1,000,000 1,000,000 Interfund loans 105,074 1,902,053 2,007,127 1,958,087 Unreserved: Designated: Working capital 5,052,687 5,052,687 4,466,375 Unexpended appropriations 56,652 56,652 39,280 Undesignated (2,106,113) 8,426,195 6,320,082 5,855,142 Total Equity and Other Credits 5,214,413 (2,106,113) 5,688,104 11,552,199 35,726,243 5,568,882 12,985,809 74,629,537 71,345,868 Total Liabilities,Equity&Other Credits $6,478,510 $421,732 $6,141,441 $15,962,646 $39,811,249 $5,815,173 $2,635,726 $12,985,809 117,700,000 $107,952,286 $101,600,261 (See notes to financial statements) City of Brooklyn Center EXHIBIT 2 All Governmental Fund Types COMBINED STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES For the Year Ended December 31,1994 Totals Special Debt Capital Memorandum Only Revenues General Revenue Service Projects 1994- 1993 Taxes and special assessments $5,703,773 $1,529,651 $328,696 $491,057 $8,053,177 $7,571,724 Licenses and permits 317,620 317,620 300,480 Intergovernmental 3,353,247 184,836 812,098 4,350,181 3,679,863 Charges for services 825,959 18,413 844,372 850,366 Court fines 113,573 113,573 140,104 Investment earnings 218,671 2,233- 261,876 694,490 1,177,270 1,330,768 Miscellaneous 22,899 27,831 50,730 728,667 Total Revenues 10,555,742 1,735,133 590,572 2,025,476 14,906,923 14,601,972 Expenditures Current: General government 1,692,268 1,692,268 1,560,674 Public safety 4,409,490 4,409,490 3,870,563 Public works 1,230,565 1,230,565 1,756,187 Community services 41,495 41,495 41,325 Parks and recreation 2,055,479 19,159 2,074,638 2,022,668 Economic development 199,982 72,270 729,739 1,001,991 675,150 Non-departmental 312,779 312,779 300,803 Capital outlay 1,732,862 1,732,862 2,629,938 Debt service: Principal retirement 780,000 780,000 1,710,000 Interest and fiscal charges 81,656 1,082,191 109,132 1,272,979 1,399,704 Total Expenditures 9,942,058 173,085 1,862,191 2,571,733 14,549,067 15,967,012 Excess or Deficiency(-)of Revenues Over Expendit 613,684 1,562,048 (1,271,619) (546,257) 357,856 (1,365,040) Other Financing Sources or Uses(-) Proceeds from sale of bonds 3,533 824,980 828,513 Operating transfers in 190,000 1,559,471 1 014 519 2,763,990 2,316,801 Operating transfers out (1,559,678) (1,229,154). (2,788,832) (2,301,611) Sale of certificates of indebtedness 120,000 Total Other Financing Sources or Uses(-) 190,000 (1,559,678) 1,563,004 610,345 803,671 135,190 Excess or Deficiency(-)of Revenues and Other Sources Over Expenditures and Other Uses 803,664 2,370 291,385 64,088 1,161,527 (1,229,850) Fund Balances(Deficits)January 1 4,610,729 (2,108,483) 5,846,719 11,496,189 19,845,154 22,710,441 Equity Transfers Out (200,000) (450,000) (8,078) (658,078) (1,635,437) Fund Balances(Deficits)December 31 $5,214,413 ($2,106,113) $5,688,104 $11,552,199 $20,348,603 $19,845,154 (See notes to financial statements) - 17 - City of Brooklyn Center EXHIBIT 3 General and Special Revenue Funds COMBINED STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL For the Year Ended December 31,1994 General Fund Special Revenue Funds Actual Over Actual Over Under(-) Under(-) Budget Actual Budget Budget Actual Budget Revenues Property taxes $5,884,414 $5,703,773 ($180,641) $1,365,000 $1,529,651 $164,651 Licenses and permits 289,300 317,620 28,320 Intergovernmental 3,320,818 3,353,247 32,429 235,627 184,836 (50,791) Charge for services 943,133 825,959 (117,174) 15,000 18,413 3,413 Court fines 144,000 113,573 (30,427) Investment earnings 170,000 218,671 48,671 1,500 2,233 733 Miscellaneous 14,500 22,899 8,399 Total Revenues 10,766,165 10,555,742 (210,423) 1,617,127 1,735,133 118,006 Expenditures General government 1,808,919 1,692,268 (116,651) Public safety 4,675,502 4,409,490 (,266,012) Public works 1,562,401 1,230,565 (331,836) Community services 41,572 41,495 (77) Parks and recreation 2,205,448 2,055,479 (149,969) 28,000 19,159 (8,841) Economic development 206,000 199,982 (6,018) 1,100 72,270 71,170 Non-departmental 456,323 312,779 (143,544) Interest and fiscal charges 104,000 81,656 (22,344) Total Expenditures 10,956,165 9,942,058 (1,014,107) 133,100 173,085 39,985 Excess or Deficiency(-)of Revenues Over Expenditures (190,000) 613,684 803,684 1,484,027 1,562,048 78,021 Other Financing Sources or Uses(-) Operating transfers in 190,000 190,000 Operating transfers out (1,638,806) (1,559,678) 79,128 Total Other Financing Sources or Uses(-) 190,000 190,000 0 (1,638,806) (1,559,678) 79,128 Excess or Deficiency(-)of Revenues and Other Sources Over Expenditures and Other Uses 0 803,684 803,684 (154,779) 2,370 157,149 Fund Balances(Deficits)January 1 4,610,729 4,610,729 (2,108,483) (2,108,483) Equity Transfer Out (200,000) (200,000) Fund Balances(Deficits)December 31 $4,410,729 $5,214,413 $803,684 ($2,263,262) ($2,106,113) $157,149 (See notes to financial statements) - 18 - City of Brooklyn Center EXHIBIT 4 Proprietary Fund Types COMBINED STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1994 Internal Totals Enterprise Service (Memorandum Only) Operating Revenues Funds Funds 1994 1993 Sales and user fees $9,248,796 $1,030,412 $10,279,208 $8,417,244 Cost of sales 2,413,423 2,413,423 2,244,689 Net Operating Revenues 6,835,373 1,030,412 7,865,785 6,172,555 Operating Expenses Personal services 2,246,599 277,284 2,523,883 2,038,654 Supplies 281,683 180,356 462,039 234,704 Other services 2,414,671 54,748 2,469,419 2,223,486 Insurance 97,067 26,037 123,104 71,671 Utilities 343,677 343,677 307,402 Rent 69,858 69,858 69,772 Depreciation 721,297 318,413 1,039,710 795,527 Total Operating Expenses 6,174,852 . 856,838 7,031,690 5,741,216 Operating Income Loss (-) 660,521 173,574 834,095 431,339 Nonoperating Revenues or Expenses (-) Investment earnings 518,661 161,272 679,933 581,819 Special assessments (for service hookups and delinquencies) 16,776 16,776 30,407 Other revenue 2,153 499 2,652 2,036 Loss on disposal of fixed assets (11,541) (2,458) (13,999) Interest and fiscal agent fees (123,465) (123,465) (84,491) Total Net Nonoperating 402,584 159,313 561,897 529,771 Income Before Operating Transfers 1,063,105 332,887 1,395,992 961,110 Operating Transfers In 124,842 124,842 84,810 Operating Transfers Out(-) (100,000) (100,000) (100,000) Net Income 1,087,947 332,887 1,420,834 945,920 Depreciation on contributed assets that reduces contributed capital 338,532 275,258 613,790 343,228 Retained Earnings January 1 13,675,883 846,382 14,522.,265 13,233,117 Equity Transfer from Contributed Capital 55,320 55,320 Equity Transfer In (Out) (619,099) (619,099) Retained Earnings December 31 $14,538,583 $1,454,527 $15,993,110 $14,522,265 (See notes to financial statements) - 19 - City of Brooklyn Center EXHIBIT 5 Proprietary Fund Types COMBINED STATEMENT OF CASH FLOWS For the Year Ended December 31, 1994 Internal Totals Enterprise Service (Memorandum Only) Cash flows from operating activities: Funds Funds 1994 1993 Operating income(loss) $660,521 $173,574 $834,095 $431,339 Adjustments to reconcile operating income(loss)to net cash provided by(used for)operating actvities: Depreciation 721,297 318,413 1,039,710 795,527 Loss on sale of fixed assets 2,458 2,458 Changes in assets and liabilities: Accounts receivable and due from other governments (1,179,037) (3,027) (1,182,064) (278,177) Inventories (8,785) (17,874) (26,659) (35,829) Prepaid expenses 10,185 10,185 (4,754) Accounts payable 34,125 15,751 49,876 90,709 Accrued salaries and leave (8,413) 24,664 16,251 31,209 Accrued interest payable 37,760 37,760 Accrued health insurance liability (10,668) (10,668) 25,454 Other nonoperating income 18,929 499 19,428 32,443 Net cash provided by(used for)operating activities 286,582 503,790 790,372 1,087,921 Cash flows from noncapital financing activities: Proceeds from borrowings on revolving loan 153,726 153,726 305,479 Principal payments on revolving loan (20,960) (20,960) (19,257) Interest paid on revolving loan (93,257) (93,257) (84,491) Operating transfers in 124,842 124,842 84,810 Operating transfers out (100,000) (100,000) (100,000) Net cash provided by noncapital financing activities 64,351 64,351 186,541 Cash flows from capital and related financing activities: Proceeds from bond sale 1,830,000 1,830,000 Capital contributions 1,060,989 1,060,989 1,685,287 Equity transfer to Central Garage Fund (402,911) (402,911) Acquisition and construction of capital assets (2,154,965) (583,913) (2,738,878) (1,250,812) Interest paid on revenue bonds (30,208) (30,208) Net cash provided by(used for)capital and related financing activities (758,084) 477,076 (281,008) 434,475 Cash flows from investing activities: Interest on investments 518,661 161,272 679,933 581,819 Net cash provided by investing activities 518,661 161,272 679,933 581,819 Net increase(decrease)in cash and cash equivalents 111,510 1,142,138 1,253,648 2,290,756 Cash and cash equivalents at beginning of year 4,810,827 2,698,363 7,509,190 5,218,434 Cash and cash equivalents at end of year $4,922,337 $3,840,501 $8,762,838 $7,509,190 NONCASH FINANCING, CAPITAL,AND INVESTING ACTIVITIES Gain(loss)on disposal of fixed assets ($656) - Gain(loss)resulting from transfer of fixed assets to the Central Garage Fund (10,885) - Contribution of fixed assets from other funds - 216,188 Fixed Assets transferred to other funds 216,188 24,161 (See notes to financial statements) - 20 - i City of Brooklyn Center NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1994 Note 1: Summary of Significant Accounting Policies The City of Brooklyn Center, Minnesota (City) was formed and Y ( Y) operated pursuant to applicable Minnesota laws and statutes. The governing body consists of a five-member City Council elected at large to serve four-year staggered terms. A. Reporting Entity The City includes all funds, organizations, institutions, agencies, departments and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the general purpose financial statements of the City because of the significance of their operational or financial relationships with the City. BLENDED COMPONENT UNITS: Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are combined with data of the primary government. Economic Development Authority (EDA) and Housing and Redevelopment Authority (HRA) in and for the City of Brooklyn Center: The governing boards are the City Council. The Council reviews and approves EDA and HRA tax levies, and the City provides major community development financing for EDA and HRA activities. Debts issued for EDA and HRA activities are City general obligations. Although the EDA and HRA are legally separate from the City, they are reported as if they were part of the City because their sole purpose is carry out certain redevelopment projects for the City. Complete financial statements for the EDA and HRA may be obtained at the City offices located at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430. RELATED ORGANIZATIONS: The Brooklyn Center Fire Department Relief Association (Association) : The Association is organized as a nonprofit organization, legally separate from the City, by its members to provide - 21 - Note 1: Summary of Significant Accounting Policies (continued) A. Reporting Entity (continued) pension and other benefits to such members in accordance with Minnesota Statutes. Its board of directors is appointed by the membership of the Association and not by the City Council and the Association issues their own set of financial statements. All funding is conducted in accordance with applicable Minnesota Statutes, whereby state aids flow to the Association, tax levies are determined by the Association, and are only reviewed by the City and the Association pays benefits directly to its members. The Association may certify tax levies to Hennepin County directly if the City does not carry out this function. Because the Association is fiscally independent of the City, the financial statements of the Association have not been included within the City's reporting entity. (See Note 9 for disclosures relating to the pension plan operated by the Association. ) The City's portion of the costs of the Association's pension benefits are included in the General Fund under public safety. JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS: The City has several agreements with governmental and other entities which provide reduced costs, better service, and additional benefits to the participants. These programs, which the City participates in, are listed below and amounts recorded within the current year financial statements are disclosed. Local Government Information Systems Association (Logis) : This consortium of approximately 20 government entities provides computerized data processing and support services to its members. Logis is legally separate;' the City does not appoint a voting majority of the Board, and; the Consortium is fiscally independent of the City. The total amount recorded within the 1994 financial statements of the City was $222, 400 for services provided which is allocated to the various funds based on applications. Complete finacial statements may be obtained at the LOGIS offices located at 2700 Freeway Boulevard, Suite 300, Brooklyn Center, Minnesota 55430. Logis Insurance Group: This group provides cooperative purchasing of health and life insurance benefits for approximately 45 government entities. The total amount recorded within the 1994 financial statements of the City was $455, 219 for services provided. - 22 - Note 1: Summary of Significant Accounting Policies (continued) B. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into seven generic fund types and three broad fund categories as follows: GOVERNMENTAL FUNDS: General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of certain specific revenue sources that are legally restricted to expenditures for specified purposes. Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities, other than those financed by proprietary funds. PROPRIETARY FUNDS: Enterprise Funds - Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City on a cost reimbursement basis. I - 23 - Note 1: Summary of Significant Accounting Policies (continued) B. Fund Accounting (continued) FIDUCIARY FUNDS: Agency Funds - Agency Funds are used to account for assets held by the City as an agent for others. C. Fixed Assets and Long-Term Liabilities The accounting and reporting of fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. All governmental funds are accounted for on a spending or "financial flow" measurement, which means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance is considered a measure of "available spendable resources. " Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Fixed assets used in governmental fund type operations are accounted for in the General Fixed Assets Account Group, rather than in the governmental funds. Public domain general fixed assets consisting of certain improvements other than buildings, including roads, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems have been excluded from general fixed assets, as such items are immovable and of value only to the City. No depreciation has been provided on general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if historical cost is unavailable. Donated fixed assets are valued at their estimated market value as of the date donated. The fixed assets of the proprietary funds are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: Water & Sewer Mains & Lines 100 years Buildings and Structures 20-40 years Water Wells and Storage Tanks 15-50 years Sewer Lift Stations 15-40 years Machinery and Equipment 5-20 years Furniture and Fixtures 5-20 years Public Utility assets financed by special assessments are recorded as contributions. - 24 - i Note 1: Summary of Significant Accounting Policies (continued) C. Fixed Assets and Long-Term Liabilities (continued) Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group, not in the governmental funds. All proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operations of these funds are included on the balance sheet. Fund equity (i.e. , net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund-type operating statements present increases (e.g. , revenues) and decreases (e.g. , expenses) in net total assets. D. Basis of Accounting Governmental funds and agency funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Major revenues that are susceptible to accrual include taxes, special assessments, intergovernmental revenues, charges for services, and investment earnings. Major revenues that are not susceptible to accrual include licenses and permits, fees and miscellaneous revenues; such revenues are recorded only as received because they are not measurable until collected. Interest on special assessments is recognized as revenue when due, net of delinquencies. Expenditures are generally recognized 'under the modified accrual basis of accounting when the related fund liability is incurred, except for principal and interest on general long-term debt which is recognized when due. All proprietary funds are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned, and expenses are recognized when they are incurred. Unbilled Water and Sewer fund utility service receivables are recorded at year end. E. Budgets and Budgetary Accounting The City follows these procedures establishing the budgetary data reflected in the financial statements: - 25 - Note 1: Summary of Significant Accounting Policies (continued) E. Budgets and Budgetary Accounting (continued) 1. In August, the City Manager submits to the City Council proposed operating budgets for the fiscal year commencing the following January. The operating budgets include expenditures and the means of financing them. 2 . The County mails individual property tax notices showing the taxes which would result from the proposed budgets of all taxing units to each property in November. 3 . Public hearings are conducted to obtain taxpayer comments. 4 . The budgets are legally enacted through passage of a resolution by the City Council in the month of December. 5. The City Council must authorize any transfer of budgeted amounts between departments within any fund. 6 . Supplemental appropriations during the year may only be made by the City Council. These amounts must be financed by funds from the contingency reserve set up in the general fund or by additional revenues. 7 . All budget amounts lapse at the end of the year to the extent they have not been expended. 8 . Formal budgetary integration is employed as a management control device during the year for the. General Fund and Special Revenue Funds. Formal budgetary integration is not employed for Debt Service Funds because effective budgetary control is alternatively achieved through general obligation bond indenture provisions. Budgetary control for Capital Projects Funds is accomplished through the use of project controls. 9 . Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the General and Special Revenue Funds. 10. Budgetary control is maintained at the department level, in compliance with the City Council's directions. 11. Budgeted amounts are as originally adopted, or as amended by the City Council. Individual amendments were not material in relation to the original appropriations. F. Investments Cash balances from all funds are combined and invested to the extent available in authorized investments (see Note 2) . Earnings from such investments are allocated to the respective - 26 - i Note 1: Summary of Significant Accounting Policies (continued) F. Investments (continued) funds on the basis of applicable cash balance participation by each fund. Cash investments are stated at amortized cost (which approximates market) except for Deferred Compensation Fund assets which are recorded at market. All highly liquid unrestricted investments with a maturity of three months or less when purchased are considered to be cash equivalents. All of the investments allocated to the proprietary fund types have maturities of 90 days or less. Therefore, the entire balance in such fund types is considered to be cash equivalents. G. Inventory Inventories in the proprietary funds are valued at cost, using the first-in/first-out (FIFO) method in the Earle Brown Heritage Center Fund and weighted average in the Municipal Liquor Fund. The costs of governmental fund type supplies are recorded as expenditures when purchased. H. Restricted Assets and Retained Earnings Investments and Retained Earnings in the amount of $3, 700, 000 in the Water Utility Fund and $300, 000 in the Sanitary Sewer Fund have been restricted for the possible future expansion of the facilities. The City Council passed a resolution establishing a $1, 000, 000 endowment account in the Capital Project - Economic Development Authority Fund. The endowment account's interest is used by the E.D.A. to fund various housing programs. Investments in the Refunding Tax Increment Bonds of 1992 Debt Service Fund are classified as restricted because the securities have been placed in an irrevocable trust with an escrow agent. I. Accumulated Unpaid Vacation and Sick Pay The City pays employees severance pay upon termination of employment based on accumulated sick leave and accrued vacation. Such pay is accrued as an expenditure/expense as it is earned. J. Fund Equity Contributed capital is recorded in proprietary funds that have received capital grants or contributions from developers, customers or other funds. Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balance represents tentative plans for future use of financial resources. I - 27 - Note 1: Summary of Significant Accounting Policies (continued) K. Property Tax Property tax levies are set by the City Council in December of each year, and are certified to Hennepin county for collection �I in the following year. In Minnesota, counties act as collection agents for all property taxes. The County spreads all levies over taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Revenues are accrued and recognized in the year collectible, net of delinquencies. Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes may be paid on February 28 and June 30. The County provides tax settlements to cities and other taxing districts two times a year, in July and December. Taxes which remain unpaid at December 31 are classified as delinquent taxes receivable and are fully offset by deferred revenue because they are not known to be available to finance current expenditures. At December 31, 1994, the City has recorded $79, 160 in deferred revenue for the General Fund for estimated property tax abatements that are anticipated to be repaid to the County in early 1995 . L. Reclassification Certain 1993 accounts have been reclassified to conform to the 1994 presentation. M. Total Columns on Combined Statements Total columns on the Combined Statements are captioned Memorandum Only to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. - 28 - i Note 2 : Cash and Investments A. Deposits In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council. All such depositories are members of The Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds (140% in the case of mortgage notes pledged) . Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and certain other state or local government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City treasurer or in a financial institution other than that furnishing the collateral. At December 31, 1994 the carrying amount of the City's demand deposits was $804, 107 and the bank balance was $1, 322, 723 . Of the bank balance, $265, 046 was covered by federal depository insurance (risk category A) , $497,965 was on deposit at the Federal Reserve Bank of Minneapolis in the City's name, and the remainder was covered by collateral held in the pledging bank's trust department in the City's name (risk category B) . Risk Category (A) Insured or collateralized by securities held by the City or its agent in the City's name (B) Collateralized with securities held by the pledging institution's trust department in the City's name (C) Uncollateralized or collateralized with securities held by the pledging institution, but not in the City's name B. Investments The City may also invest idle funds as authorized by Minnesota Statutes, as follows: (a) Direct obligations or obligations guaranteed by the United States or its agencies.. - 29 - Note 2 : Cash and Investments (continued) B. Investments (continued) (b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above. (c) General obligations of the State of Minnesota or any of its municipalities. (d) Bankers acceptances of United States banks eligible for purchase by the Federal Reserve System. (e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. (f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10, 000, 000, a primary reporting dealer in U. S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. (g) Future contracts sold under authority of Minnesota Statutes 471. 56, subdivision 5 . The City's investments are categorized below to give an indication of the level of custodial credit risk assumed at year-end. Category 1 includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counter party's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counter party, or by its trust department or agent, but not in the City's name. Balances at December 31, 1994 Credit Risk Category Carrying Market Securities Type 1 2 3 Amount Value U.S. Governments $16,402,700 $16,402,700 $16,117,762 Federal Agencies 11,335,000 11,335,000 10,948,507 Commercial Paper 2,000,000 2,000,000 1,950,539 $29,737,700 $0 $0 $29,737,700 $29,016,808 - 30 - NOTE 2: Cash and Investments (continued) SUMMARY OF CASH AND INVESTMENTS I Balances at December 31, 1994 Cash in Banks: Carrying Amount Marquette Bank Brookdale, Brooklyn Center, Minnesota $202,368 American Bank, St. Paul, Minnesota 20 Riverside Bank, Minneapolis, Minnesota 103,754 Federal Reserve Bank, Minneapolis, Minnesota 497,965 Total Cash in Bank $804,107 Investments: Investment Type Interest Rate Maturity U.S. Treasury notes 4.1 - 7.6% 1995- 1999 $16,402,700 Federal Home Loan Bank bonds 4.6- 8.2% 1995- 1998 4,400,000 Federal Home Loan Mortgage bonds 5.2% 1998 300,000 Federal National Mortgage Association bonds 4.4- 8.2% 1996- 1998 5,635,000 Federal Farm Credit Bank bonds 5.5% 1995 1,000,000 Commercial Paper 6.4- 6.6% 1995 2,000,000 Total Investments $29,737,700 Minnesota Municipal Money Market 1,452,578 Money Market Fund, First Trust, St. Paul, Minnesota 72,661 Total Cash and Investments $32,067,046 Accrued interest on investments 351,172 Discounts on investments (127,736) Premiums on investments 27,628 Change funds 7,593 Performance Deposits (25,566) Temporary Improvement Notes (Note 3) 3,121,090 Total Cash, Cash Equivalents, Investments, I and Restricted Investments $35,421,227 _ _ Other Assets Investment Pools Deferred Compensation Plan $2,635,726 From Exhibit 1, COMBINED BALANCE SHEET Cash and investments $26,238,508 Restricted investments 9,182,719 $35,421,227 - 31 - Note 3 : Temporary Improvement Notes Temporary Improvement Notes represent interfund borrowing to provide interim financing for construction projects or capital outlay expenditures. Such loans bear interest at 7 percent and totaled $3 , 121, 090 and $2,713 ,882 at December 31, 1994 and 1993 , respectively. For collection purposes, all of these notes are considered current, since they are payable on demand. Individual fund note balances at December 31, 1994 were as follows: Interfund Interfund Receivable Payable General $1, 044, 340 E. Brown T.I.F. District $1, 624 , 344 Tax Increment Bonds of 1985 104 , 621 Tax Increment Bonds of 1991 109, 417 Refunding Bonds of 1987 21, 790 Street Improv Bonds of 1994 23 , 471 Capital Improvements Fund 985, 503 M.S.A. Construction Fund 454 , 716 Spec Assess Construct Fund 1, 107 , 541 Economic Development Authority 377, 232 E. Brown Heritage Center Fund 389 , 205 ---------- ---------- TOTALS $3 , 121, 090 $3 , 121, 090 - 32 - lil Note 4: Fixed Assets Changes in the General Fixed Assets Account Group during 1994 were as follows: it Balance Balance Jan. 1, 1994 Additions Disposals Transfers In Dec. 31, 1994 Land $2,369,801 $2,369,801 Buildings& Improvements 4,944,348 $472,886 5,417,234 Park Improvements 2,953,620 . 99,181 $13,697 3,039,104 Furniture & Fixtures 995,626 153,000 34,385 1,114,241 Departmental Equipment 996,945 50,053 25,730 $24,161 1,045,429 TOTAL GENERAL FIXED ASSETS $12,260,340 $775,120 $73,812 $24,161 $12,985,809 The following is a summary of proprietary fund-type fixed assets at December 31, 1994: Internal Enterprise Service Funds Funds Land $2,738,600 Land Improvements 84,981 Buildings& Improvements 16,119,716 Mains& Lines 15,971,551 Furniture & Fixtures 1,122,255 Departmental Equipment 133,859 $3,936,720 Total 36,170,962 3,936,720 Less accumulated depreciation (8,203,431) (1,982,949) Net $27,967,531 $1,953,771 Construction in progress is included in building and park improvements and is comprised of the following: Total Expended Project to Proiect Authorization 12/31/94 Committed Central Garage Improvements $1,611,852 $623,301 $998,369 Park Playground Equipment 176,836 84,151 101,658 Total $1,788,688 $707,452 $1,10D,027 - 33 - Note 5: Long-Term Debt The City's long-term debt includes state aid street bonds, special assessment improvement bonds, and tax increment bonds; all of which are recorded in the General Long-Term Debt Account Group. In addition, the City issued storm sewer revenue bonds which are recorded as a liability in the Storm Drainage Fund. The following is a summary of bond transactions of the City for the year ended December 31, 1994: State Special Tax Aid Street Assessment Revenue Increment Bonds Bonds Bonds Bonds Total Bonds payable January 1 $2,750,000 $275,000 $14,620,000 $17,645,000 Bonds issued 835,000 $1,830,000 2,665,000 Bonds retired 145,000 100,000 535,000 780,000 Bonds payable December 31 $2,605,000 $1,010,000 $1,830,000 $14,085,000 $19,530,000 State Aid Street Bonds Future allotments from Municipal State Aid for Streets will repay these bonds which are backed by the full faith and credit of the City. Special Assessment Bonds The special assessment bonds are payable primarily from special assessments levied for local improvements and are backed by the full faith and credit of the City. Revenue Bonds The Storm Sewer Bonds are general obligation revenue bonds and are backed by the full faith and credit of the City. Revenues to repay the bonds are provided by the Storm Drainage Fund. Tax Increment Bonds Tax Increment Bonds will be repaid from incremental tax increases on the property within certain development districts and are backed by the full faith and credit of the City. - 34 - Note 5: Long-Term Debt (continued) Refunding Tax Increment Bonds In a prior year, the City issued $4, 270, 000 in General Obligation Tax Increment Refunding Bonds, Series 1992A with a net interest rate of 5. 329%. The proceeds of the 1992 bond issue will be used to advance refund $4, 180, 000 of the City's $5,250, 000 General Obligation Tax Increment Bonds, Series 1985A, callable on February 1, 19.96 and with a net interest rate of 8. 054%. The proceeds of $4,242 ,551, together with other City funds in the amount of $250, (after payment of $45, 137 in bond issue costs) were used to purchase State and Local Government Securities (SLG's) . Those securities were deposited in an irrevocable trust with an escrow agent to provide for the payment of remaining maturities of the refunded bonds at the call date and for the interest on the refunding bonds through the call date. The City is responsible for principal and interest payments- on the refunded bonds through the call date. The principal balances of both the refunded and refunding bonds are reported in the General Long-Term Debt Account Group until the call date of the refunded bonds, at which time the refunded bonds will be considered defeased and the related liability will be removed from the General Long-Term Debt Account Group. Long-term debt maturities (including interest of$7,247,173) are as follows: State Special Tax Aid Street Assessment Revenue Increment Bonds Bonds Bonds Bonds Total 1995 $306,325 $133,521 $90,625 $1,461,130 $1,991,601 1996 307,872 158,608 198,315 1,501,995 2,166,790 1997 308,588 158,065 237,595 1,917,523 2,621,771 1998 308,478 113,365 240,390 1,975,825 2,638,058 1999 307,560 109,605 237,558 2,072,383 2,727,106 2000 on 2,183,308 616,450 1,433,160 10,398,929 14,631,847 $3,722,131 $1,289,614 $2,437,643 $19,327,785 $26,777,173 - 35 - Note 5: Long-Term Debt(continued) Long-term debt obligations outstanding at year-end are summarized as follows: Bond Payment Issue Maturity Authorized Rates% Dates Date Date And Issued Retired Outstanding State Aid Street Bonds G.O. State-Aid Street Bonds 4.7-6.65 4-01 10-01 09-01-91 04-01-06 $3,000,000 $395,000 $2,605,000 Total $3,000,000 $395,000 $2,605,000 Special Assessment Bonds 1987 Refunding Bonds 4.7-5.5 2-01 8-01 04-01-87 02-01-97 $1,200,000 $1,025,000 $175,000 1994 Street Improvement Bonds 4.1-5.5 2-01 8-01 08-01-94 02-01-05 835,000 - 835,E Total $2,035,000 $1,025,000 $1,010,000 Revenue Bonds 1994 Storm Sewer Revenue Bonds 4.2-5.4 2-018-01 08-01-94 02-01-05 $1,830,000 - $1,830,000 Total $1,830,000 - $1,830,000 Tax Increment Bonds 1985 G.O.Tax Increment Bonds 6.75-8.1 2-01 8-01 12-01-85 02-01-03 $5,250,000 $535,000 $4,715,000 1991 G.O.Tax Increment Bonds 4.7-6.0 2-01 8-01 03-01-91 02-01-04 6,050,000 950,000 5,100,000 1992 G.O. Refunding Tax Incr Bonds 4.5-5.6 2-01 8-01 02-01-92 02-01-03 4,270,000 - 4,270,000 Total $15,570,000 $1,485,000 $14,085,000 Note 6: Contributed Capital During 1994 contributed capital changed by the following amounts: Internal Enterprise Service Funds Funds Additions: Transfers In $1,277,177 Deductions: Transfer to Retained Earnings ($55,320) Transfers Out (24,161) Depreciation on contributed assets (338.532) (275,258) Net Change (393,852) 977,758 Contributed Capital,January 1, 1994 21,581,512 3,136,597 Contributed Capital, December 31, 1994 $21,187,660 $4,114,355 - 36 - Note 7: Segment Information as of and for the Year Ended December 31, 1994 was as follows: E. Brown Enterprise Funds: Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center & Refuse Utility Sewer Drainage Fund Fund Fund Fund Fund Fund Fund Total Operating Revenues $2,698,373 $302,050 $2,248,111 $134,740 $1,053,689 $2,126,822 $685,011 $9,248,796 Depreciation Expense 15,717 13,659 343,328 236,850 110,855 888 721,297 Operating Income (Loss) 148,125 42,620 (440,568) 15,868 95,866 318,484 480,126 660,521 Operating Transfers In 124,842 124,842 Operating Transfers (Out) (100,000) (100,000) ' Equity Transfer(Out) (14,549) (110,342) (147,022) (218,828) (128,358) (619,099) Net Income (Loss) 39,036 (24,397) (338,532) 21,005 374,972 533,443 482,420 1,087,947 Property, Plant & Equipment: Additions 51,384 45,455 51,838 576,809 297,606 1,131,873 2,154,965 Deletions 70,531 107,804 175 130,076 137,517 62,555 508,658 Net Working Capital 172,408 3,512 (80,039) 105,712 1,265,121 3,755,161 1,234,375 6,456,250 Total Assets 676,075 1,718,702 10,446,840 106,277 13,857,231 9,719,031 3,287,093 39,811,249 Bonds and Other Long-Term Liabilities Payable from Operating Revenues 136,172 1,150,000 1,830,000 3,116,172 Total Equity $378,775 $562,323 $9,884,857 $105,712 $13,798,029 $9,646,174 $1,350,373 $35,726,243 NOTE 8 : Pension Plans: Public Employees Retirement Association (PERA) City employees participate in the pension plans administered by the Public Employees Retirement Association (PERA) . In accordance with Government Accounting Standards Board Statement No. 5, the PERA plans are classified as a defined benefit multiple employer cost sharing plans. Disclosures relating to this plan are as follows: A. Plan Description All full-time and certain part-time employees of the City of Brooklyn Center are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA) . PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost sharing multiple employer retirement plans. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated members .are covered by Social Security and Basic members are not. All new members must participate in the Coordinated Plan. All police officers, fire fighters and peace officers who qualify for membership by statute are covered by the PEPFF. The payroll for employees covered by PERF and PEPFF for the year ended December 31, 1994, was $4,214, 312 and $1, 945, 791 respectively; the City's total payroll was $7, 219,832 . PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on member's average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for Coordinated and Basic members. The retiring member receives the higher of step rate benefit accrual formula (Method 1) or a level accrual formula (Method 2) . Under Method 1, the annuity accrual rate for a Basic member is 2 percent of average salary for each of the first 10 years of service and 2 . 5 percent for each remaining year. For a Coordinated member, the annuity accrual rate is 1 percent of average salary for each of the first 10 years and 1. 5 percent for each remaining year. Using Method 2, the annuity accrual rate is 2.5 percent of average salary for Basic members and 1.5 percent for Coordinated members. For PEPFF members, the annuity accrual rate is 2 . 65 percent for each year of service. For PERF members whose annuity is calculated using Method 1, and for all PEPFF members, a full annuity is available when age plus years of service equal 90. There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree. No survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the - 38 - NOTE 8: Pension Plans (continued) A. Plan Description (continued) annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service, in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. B. Contributions Required and Contributions Made Minnesota Statutes Chapter 353 sets the rate for employer and employee contributions. The City makes annual contributions to the pension plans equal to the amount required by state statutes. According to Minnesota Statutes Chapter 356.215, Subd. 4 (g) , the date of full funding required for the PERF and the PEPFF is the year 2020. As part of the annual actuarial valuation, PERA's actuary determines the sufficiency of the statutory contribution rates towards meeting the required full funding deadline. The actuary compares. the actual contribution rate to a "required" contribution rate. Current combined statutory contribution rates and actuarially required contribution rates for the plans are as follows: Statutory Rates Required Employee Employer Rates* Public Employees Retirement Fund: Basic Plan and Coordinated Plan 4. 30% 4 . 60% 9. 58% Police & Fire Fund 7. 90% 11.70% 17 .45% * The recommended rates scheduled above represent the required rates for fiscal year 1994 contributions as reported in the July 1, 1993, actuarial valuation reports. Total contributions made by the City during fiscal year 1994 were: Percentage of Contribution Covered Payroll Employees Employer Employees Employer Public Employees Retirement Fund: Basic Plan $ 7, 213 $ 9,405 8.23% 10.73% Coordinated Plan 174, 557 184 ,873 4 . 23% 4.48% Police & Fire Fund 148, 179 222 , 266 7 . 60% 11.40% TOTALS $329,949 $416, 544 - 39 - NOTE 8 : Pension Plans (continued) B: Contributions Required and Contributions Made (continued) The City's contribution for the year ended June 30, 1994, to the Public Employees Retirement Fund, represented approximately . 16 percent of total contributions required of all participating entities. For Public Employees Police and Fire Fund, contributions for the year ended June 30, 1994, represented .7 percent of total contributions required of all participating entities. C. Funding Status and Progress 1. Pension Benefit Obligation The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure which is the actuarial present value of credited projected benefits, is intended to help users assess PERA's funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among Public Employees Retirement Systems and among employers. PERA does not make separate measurements of assets and pension benefit obligation for individual employers. The pension benefit obligations as of June 30, 1994, are shown below (in millions) : PERF PEPFF ---------------------- Total pension benefit obligation $5, 626 $1, 021 Net assets available for benefits, at cost (market value for PERF = $4 , 763 ; PEPFF = $1, 237) $4, 734 $1, 230 Unfunded (assets in excess of) pension benefit obligation $ 892 $ (209) The measurement of -the pension benefit obligation is based on an actuarial valuation as of June 30, 1994 . Net assets available to pay pension benefits were valued as of June 30, 1994 . For the PERF, significant actuarial assumptions used in the calculation of the pension benefit obligation include . (a) a rate of . return on the investment of present and future assets of 8. 5 percent per year, compounded annually, prior to retirement, and 5 percent per year, compounded annually, following retirement; (b) projected salary increases taken from a select and ultimate table; (c) payroll growth at 6 percent per year, consisting of 5 percent inflation and one percent due to growth in group size; (d) post-retirement benefit - 40 - i NOTE 8: Pension Plans (continued) C. Funding Status and Progress (continued) increases that are accounted for by the 5 percent rate of return assumption following retirement; and (e) mortality rates based on the 1983 Group Annuity Mortality Table set forward one year for retired members and set back five years for each active member. Actuarial assumptions used in the calculation of the PEPFF include (a) a rate of return on the investment of present and future assets of 8.5 percent per year, compounded annually, prior to retirement, and 5 percent per year, compounded annually, following retirement, (b) projected salary increases of 6.5 percent per year, compounded annually, attributable to the effects of inflation; (c) post- retirement increases that are accounted for by the 5 percent rate of return assumption following retirement; and (d) mortality rates based on the 1971 Group Annuity Mortality Table projected to 1984 for males and females. 2 . Changes in Plan Provisions The 1994 legislative session did not include any benefit improvements which would impact funding costs for the PERF and the PEPFF. 3 . Changes in Actuarial Assumptions Prior to fiscal year 1994 , the salary increase assumption and mortality tables used in the calculation of the pension benefit obligation for the PERF were the same as those specified for the PEPFF. For the July 1, 1994 actuarial valuation, PERA's board of trustees approved new mortality rates updated to the 1983 Group Annuity Mortality Table, salary increases which were changed to a select and ultimate table, and new payroll growth assumption which was changed from 6. 5 percent to 6 percent. These changes were made to reflect actual experience of the plan. With the adoption of the actuarial assumption changes and the new mortality table for the PERF, the pension benefit obligation increased $56, 596,000. The actuarial assumption changes also necessitated a $81, 201, 000 transfer from the PERF benefit reserve to the PERF Minnesota Post Retirement Investment Fund (MPRIF) Reserve to finance et' the increased obligation for future retirement benefits. The change e in the mortality rate assumptions increased the PERF's costs because pensioners are living longer than assumed previously. The change in the salary increase assumption, however, offset some of the additional costs because lower salary increases generally translate into lower liabilities in the future. Potential changes in the assumptions used for the PEPFF may be made in the future after completion of a special experience study for that fund. Completion of the PEPFF experience study is expected by February 1, 1995. - 41 - NOTE 8: Pension Plans (continued) D. Ten-Year Historical Trend Information Ten-year historical trend information is presented in PERA's Comprehensive Annual Financial Report for the year ended June 30, 1994 . This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. E. Related Party Investments As of June 30, 1994 and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. Note 9 : Pension Plan - Brooklyn Center Fire Department Relief Association A. Plan Description The City contributes to the Brooklyn Center Fire Department Relief Association ("Association") . In accordance with Government Accounting Standards Board Statement No. 5, it is classified as a defined benefit single employer public employee retirement system. Volunteer fire fighters of the City are members of the Association and its pension plan. An actuarial study was completed during 1993 which developed a schedule of benefit increases which will take effect on January 1 of each year. The plan's baseline benefit after 20 years of service and attaining the age 50 increases. to $490 per month in 1994, $510 per month in 1995, and $530 per month in 1996. There are additional benefits for service through 30 years. Vesting begins with 10 years of service and benefits are pro-rated for members who have between 10 and 20 years of service. Members may choose to take a lump sum settlement instead of the pension, equal to $3 ,500 in 1994, $3,750 in 1995, and $4, 000 in 1996, times the number of years of service, with a maximum of 30 years. Spouse's, children's and funeral benefits are also provided. These benefit provisions and all other requirements are consistent with enabling state statutes. The City levies property taxes at the direction of and for the benefit of the association plan and passes through state aids allocated to the plan, all in accordance with enabling state statutes. B. Funding Status and Progress The amount shown below as the "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected benefit increases, estimated to be payable in the future as a result of service to date. The measure is the actuarial present value of credited projected benefits and is intended to help users assess the funding status of - 42 - Note 9 : Pension Plan (continued) B. Funding Status and Progress (continued) the association plans on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among plans. It is independent of the actuarial funding method used to determine contributions to the plan, discussed in "C" below. The pension benefit obligation was determined as part of an actuarial valuation at' January 1, 1993 and updated as of January 1, 1995. Significant actuarial assumptions used include (a) a rate of return on the investment of present and future assets of 5 percent per year compounded annually, and (b) no post retirement benefit increases. An actuarial update to the pension obligation is performed annually. On December 31, 1994, the unfunded pension benefit obligation was as follows: Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $1, 367, 952 Current Employees - Employer-financed vested 1, 242 , 271 Employer-financed non-vested 182 , 792 Total pension benefit obligation 2 , 793 , 015 Net assets available for benefits (at cost, market equals $2,575, 071) 2 , 685, 737 Unfunded pension benefit obligation $ 107, 278 The pension benefit obligation increased by $111, 660 because of the additional year of service credited to plan members. C. Contributions Required and Contributions Made Financial requirements of the association plan are determined on an actuarial basis using the entry age normal actuarial cost method. Normal cost is funded on a current basis. The unfunded actuarial accrued liability is to be funded by December 31, 1999 . Contributions at the level specified by the last full actuarial study will continue to be made until a new study revises the contribution level. The minimum tax levy obligation is the financial requirement for the year less anticipated state aids. The funding strategy for normal cost should provide sufficient resources to pay plan benefits on a timely basis. - 43 - Note 9 : Pension Plan (continued) C. Contributions Required and Contributions Made (continued) Total contributions to the plan in 1994 amounted to $102,895, of which $36, 092 was levied by the City of Brooklyn Center and $66,803 was from the State of Minnesota. The contributed amounts were actuarially determined as described above and were based on an actuarial valuation as of January 1, 1993 . The contributions represent funding for normal cost of $68, 698 and the amortization of the unfunded actuarial accrued liability of $26, 241. Significant actuarial assumptions used to compute pension contribution requirements are substantially the same as those used to determine the standardized measure of the pension obligation. The computation of the pension contribution requirements for 1994 was based on the same actuarial assumptions, benefit provision, actuarial funding method, and other significant factors used to determine pension contribution requirements in previous years with the exception of the change noted in Section B above. D. Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Ten year trend information may be found in the Association's annual financial report for the year ended December 31, 1994 . Three year trend information for the Association is as follows: 1994 1993 1992 Available assets as a ---- ----. ---- percentage of benefit obligation 96% 98% 101% Unfunded pension benefit obligation as a percentage of covered payroll *not *not *not applicable applicable applicable City's contribution** as a percentage of *not *not *not covered payroll applicable applicable applicable *The Brooklyn Center Fire Department is a volunteer organization; thus, no covered payroll exists. **The City's contribution was made in accordance with actuarially determined requirements. E. Related Party Investments As of December 31, 1994, the Association held no securities issued by the City or other related parties. - 44 - Note 10: Individual Fund Disclosures Deficit fund balances exist in the following funds: Special Revenue Funds: Earle Brown Tax Increment Financing District: Unreserved deficit fund balance $2 , 159,874 This deficit is being funded through internal borrowing, which will be repaid from future surplus tax increments. Capital Project Funds: Special Assessment Construction: Unreserved deficit fund balance $787,706 This deficit is being funded through internal borrowing. Bonds may be sold in the future if the balances of special assessments receivable becomes large enough to justify an issue. Enterprise Funds: Golf Course: Unreserved deficit retained earnings $74, 563 This deficit is being funded through internal borrowing. It is expected that future profits will cover the deficit. Excess of Expenditures Over Appropriations For the year ended December 31, 1994 , expenditures exceeded appropriations in the Earle Brown Tax Increment Financing District special revenue fund by $48, 826. This overexpenditure was funded by excess tax increment revenues. Note 11: Inter-fund Receivables and Payables Individual inter-fund receivable and payable balances at December 31, 1994, were as follows: Due From/To Other Funds: Receivable fund Payable fund Amount Economic Development Community Development Authority Block Grant $ 65,816 Municipal State Aid for Special Assessment Construction Construction 37 , 250 .$103 ,066 - 45 - Note 11: Inter-fund Receivables and Payables (continued) Inter-fund Loans From/To Other Funds: Receivable fund Payable fund Amount General Fund E. Brown T. I.F. $ 105, 074 Municipal State Aid for Construction E. Brown T.I.F. 593 , 069 Capital Improvements Liquor Fund. 158, 984 Capital Improvements Golf Course 1, 150, 000 $2 ,007 , 127 Inter-fund Loan Terms: The loans payable by the Earle Brown Tax Increment Financing District are interest free and have no set repayment schedule. The loan payable by the Liquor Fund is paying interest at the rate- of 8.5% and is repaying the loan principal over a period extending through the year 2000. The loan payable by the Golf Course Fund is paying interest at the rate of 5% and is repaying the loan principal over a period extending through the year 2009 . Note 12 : Contingencies There are several lawsuits pending in which the City is involved. City Management estimates that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the financial statements of the City. Note 13 : Deferred Compensation Plan The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457 . The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the plan) , subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. - 46 - Note 13 : Deferred Compensation Plan (continued) It is the opinion of the City's legal counsel that the City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The City believes it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. The City is reporting the activity of this plan as an agency fund and carries its investment at market value. Note 14: Post-Employment Health Care Benefits In addition to the pension benefits described in Note 8, the City provides certain health care insurance benefits for city employees who retire before age 65. Substantially all of the City's full time employees may be eligible for those benefits from the time they retire with a full annuity from PERA (Note 8A) , until they reach age 65 or become eligible for medicare. Eight employees currently meet this requirement. The cost of retiree health care premiums for the years ended December 31, 1994 and 1993 was $43 , 477 and $13 ,996, respectively. In addition, the expenditures in 1994 were reduced by $10, 668 and increased by $25, 454 in 1993 to account for the change in the liability for the estimated cost of employees who will be eligible to enter the program on or before December 31, 1999 . Note 15: Operating Leases The City leases space for the operation of one of its three municipal liquor stores, under a five-year lease which expired on January 31, 1994. A new lease has been signed which will run through March 31, 1999. The lease provides for minimum rent payments, plus a pro-rata share of common area expenses. Total rental expense under the lease agreement for the years ended December 31, 1994 and 1993 was $35,410 and $38 , 896, respectively. Future minimum rent payments are as follows: Year Ending Amount 1995 25, 447 1996 26, 327 1997 27, 207 1998 28, 087 1999 7, 040 $114 , 108 - 47 - Note 15: Operating Leases (continued) The Earle Brown Heritage Center Fund, which operates as an enterprise fund, leases space to four tenants. Three of the leases have terms greater than one year and require annual rent increases to cover the anticipated effects of inflation. Rental revenues and expenditures under the lease agreements are as follows: 1994 1993 ------ -------- Rental Revenues $116, 326 $118, 045 Rental Expenditures $103 , 248 $ 93, 302 Total minimum rentals to be received in the future under the lease terms are as follows: Year Ending Amount 1995 $105, 736 1996 74, 675 1997 40, 517 1998 4, 6.32 $225, 560 Note 16: Fund Changes The Street Improvement Bonds of 1994 Fund was -established as a debt service fund in 1994. - 48 - City of Brooklyn Center, Minnesota GENERAL FUND The City of Brooklyn Center Home Rule Charter provides in Section 7. 11 that "there shall be maintained in the City Treasury a classification of Funds which shall provide for a General Fund for the payment of such expenses of the City as the Council may deem proper, and such other funds as may be required by statute, ordinance or resolution" . The General Fund was established to account for all revenues and expenditures which are not required to be accounted for - in other funds. It has more diverse revenue sources than other funds. These revenue sources include property taxes, licenses, permits, fines and forfeits, intergovernmental, service charges, rents, and investment earnings. The Fund's resources finance a wide range of functions, including the current operations of general government, public safety, public works, health and welfare, recreation, and non-departmental expenditures. This Fund utilizes the modified accrual basis of accounting. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the related liability is incurred. - 49 - City of Brooklyn Center AA=1 General Fund BALANCE SHEET December 31 1994 1994 1993 ASSETS Cash and investments $5,027,109 $4,668,426 Temporary improvement notes 1,044,340 857,003 Accounts receivable 42,150 50,988 Taxes receivable 237,996 183,987 Due from other governments 21,841 11,927 Interfund loan-E. Brown T.I.F. 105,074 105,074 TOTAL ASSETS $6,478,510 $5,877,405 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $266,152 $277,288 Due to other governments 44,132 4,961 Accrued salaries payable 109,902 123,328 Accred vacation and sick pay 526,755 537,112 Deferred revenue 317,156 323,987 Total Liabilities 1,264,097 1,266,676 Fund Balance Reserved for: Interfund loans 105,074 105,074 Unreserved fund balance Designated: Working capital 5,052,687 4,466,375 Appropriated to next budget 56,652 39,280 Total Fund Balance 5,214,413 4,610,729 TOTAL LIABILITIES AND FUND BALANCE $6,478,510 $5,877,405 I - 50 - City of Brooklyn Center AA=2 General Fund STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Year Ended December 31, 1994 1994 Actual Over or Under(-) 1993 Budget Actual Budget Actual Revenues Property taxes $5,884,414 $5,703,773 ($180,641) $5,006,710 Licenses and permits 289,300 317,620 28,320 300,480 Intergovernmental 3,320,818 3,353,247 32,429 3,167,214 Charges for services 943,133 825,959 (117,174) 838,883 Court fines 144,000 113,573 (30,427) 140,104 Investment earnings 170,000 218,671 48,671 249,688 Miscellaneous 14,500 22,899 8,399 29,523 Total Revenues 10,766,165 10,555,742 (210,423) 9,732,602 Expenditures General government 1,808,919 1,692,268 (116,651) 1,560,674 Public safety 4,675,502 4,409,490 (266,012) 3,870,563 Public works 1,562,401 1,230,565 (331,836) 1,756,187 Community services 41,572 41,495 (77) 41,325 Parks and recreation 2,205,448 2,055,479 (149,969) 1,999,270 Economic development 206,000 199,982 (6,018) 178,703 Non-departmental 456,323 312,779 (143,544) 300,803 Total Expenditures 10,956,165 9,942,058 (1,014,107) 9,707,525 Excess or Deficiency(-)of Revenues Over Expenditures (190,000) 613,684 803,684 25,077 Other Financing Sources Operating transfers in 190,000 190,000 0 175,000 Sale of cert.of indebtedness 0 120,000 Total Other Financing Sources 190,000 190,000 0 295,000 Excess or Deficiency(-) of Revenues and Other Financing Sources Over Expenditures 0 803,684 803,684 320,077 Fund Balance January 1 4,610,729 4,610,729 0 5,040,652 Equity Transfer Out (200,000) (200,000) 0 (750,000) Fund Balance December 31 $4,410,729 $5,214,413 $803,684 $4,610,729 - 51 - S-1 City of Brooklyn Center (Continued next page) General Fund SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 1994 1994 Actual Over or Under(-) 1993 Budget Actual Budget Actual Ad Valorem Taxes Property taxes $5,489,414 $5,286,415 ($202,999) $4,636,996 Penalties and interest (5,793) (5,793) (7,459) Lodging tax 395,000 421,069 26,069 376,146 Special assessments 2,082 2,082 1,027 Total Ad Valorem Taxes 5,884,414 5,703,773 (180,641) 5,006,710 Licenses and Permits Liquor and beer 112,700 120,939 8,239 104,077 Building permits 95,000 109,057 14,057 111,297 Mechanical permits 20,000 28,855 8,855 31,905 Sewer and water permits 1,000 1,046 46 620 Plumbing permits 8,000 14,202 6,202 15,701 Garbage licenses 2,100 2,145 45 2,005 Taxicab licenses 400 (400) 540 Mechanical licenses 3,400 3,834 434 3,435 Service station licenses 1,700 1,805 105 2,326 Vehicle dealer licenses 1,000 600 (400) 950 Bowling licenses 700 1,153 453 708 Cigarette licenses 1,000 1,123 123 1,055 Swimming pool licenses 0 (45) Sign permits 2,000 2,373 373 3,178 Rental dwelling permits 28,000 16,350 (11,650) 11,089 Amusement licenses 5,600 7,952 2,352 5,098 Dog licenses 5,700 4,765 (935) 4,746 Miscellaneous business license 1,000 1,421 421 1,795 Total Licenses and Permits 289,300 317,620 28,320 300,480 Intergovernmental Federal grants: Miscellaneous grants 6,000 9,549 3,549 25,844 Total Federal Grants 6,000 9,549 3,549 25,844 State grants: Local 9 overnment aid 1,757,227 1 757 227 0 1,697,804 Homestead credit aid 1,280,603 1,286,780 6,177 1,162,475 Police pension aid 195,988 215,838 19,850 205,637 Fireman pension aid 70,000 66,803 (3,197) 64,039 Police training 10,000 11,822 1,822 11,415 Miscellaneous grants 1,000 5,228 4,228 0 Total State Grants 3,314,818 3,343,698 28,880 3,141,370 Total Intergovernmental Rev. $3,320,818 $3,353,247 $32,429 $3,167,214 - 52 - S-1 City of Brooklyn Center (Continued from General Fund prior page) SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 1994 1994 Actual Over or Under(-) 1993 Budget Actual Budget Actual Charges for Services General government charges $35,100 $39,578 $4,478 $37,967 Public safety charges 22,100 30,476 8,376 16,861 Recreation fees 885,933 755,905 (130,028) 784,055 Total Charges for Services 943,133 825,959 (117,174) 838,883 Court Fines Fines 144,000 113,573 (30,427) 140,104 Total Court Fines 144,000 113,573 (30,427) 140,104 Miscellaneous Interest on investments 170,000 218,671 48,671 249,688 Forfeited drug money 12,481 12,481 20,990 Other 14,500 10,418 (4,082) 8,533 Total Miscellaneous 184,500 241,570 57,070 279,211 Total Revenues 10,766,165 10,555,742 (210,423) 9,732,602 Other Financing Sources Operating transfers in: Liquor Fund 100,000 100,000 0 100,000 M.S.A. Fund 90,000 90,000 0 75,000 Sale of cert. of indebtedness 0 120,000 Total Other Financing Sources 190,000 190,000 0 295,000 Total Revenues and Other Sources $10,956,165 $10,745,742 ($210,423) $10,027,602 I� 53 - City of Brooklyn Center S_2 General Fund SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL (Continued For the Year Ended December 31, 1994 next page) 1994 Actual Over or Under(-) 1993 Budget Actual Budget Actual General Government Mayor and Council: Personal services $31,688 $31,709 $21 $30,944 Services and other charges 54,000 39,179 (14,821) 45,828 Total Mayor and Council 85,688 70,888 (14,800) 76,772 Charter Commission: Services and other charges 9,500 2,768 (6,732) 916 Total Charter Commission 9,500 2,768 (6,732) 916 Administrative Office: Personal services 306,240 289,194 (17,046) 270,717 Services and other charges 70,159 68,587 (1,572) 20,394 Capital outlay 0 2,338 Charged to other funds (22,719) (22,719) 0 (22,236) Total Administrative Office 353,680 335,062 (18,618) 271,213 Elections and Voter Registration: Personal services 48,811 39,962 (8,849) 19,297 Supplies 3,400 1,668 (1,732) Services and other charges 7,425 5,685 (1,740) 3,669 Total Elections 59,636 47,315 (12,321) 22,966 Assessor's Office: Personal services 191,144 185,815' (5,329) 184,726 Supplies 3,600 985 (2,615) 2,552 Services and other charges 14,048 10,436 (3,612) 2,917 Capital outlay 1,126 1,154 28 Total Assessor's Office 209,918 198,390 (11,528) 190,195 Finance: Personal services 353,236 350,254 (2,982) 337,086 Supplies 2,450 2,088 (362) 2,713 Services and other charges 1,625 1,582 (43) 1,630 Capital outlay 0 652 Charged to other funds (199,048) (199,048) 0 (195,757) Total Finance $158,263 $154,876 ($3,387) $146,324 - 54 - City of Brooklyn Center SS=2 General Fund SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL (Continued For the Year Ended December 31, 1994 next page) 1994 Actual Over or Under(-) 1993 Budget Actual Budget Actual General Government (continued) Independent Audit: Services and other charges $18,000 $17,850 ($150) $17,500 Total Independent Audit 18,000 17,850 (150) 17,500 Legal: Services and other charges 204,196 174,709 (29,487) 185,216 Total Legal 204,196 174,709 (29,487) 185,216 Government Buildings: Personal services 139,252 138,189 (1,063) 114,388 Supplies 27,500 20,465 (7,0351 27,089 Services and other charges 173,074 182,076 9,002 171,357 Capital outlay 16,570 15,663 (907) 16,743 Total Government Buildings 356,396 356,393 (3) 329,577 Data Processing: Personal services 59,445 57,288 (2,157) 51,048 Supplies 9,100 7,310 (1,790) 10,040 Services and other charges 207,559 193,399 (14,160) 201,569 Capital outlay 88,146 86,628 (1,518) 65,850 Charged to other funds (10,608) (10,608) 0 (8,512) Total Data Processing 353,642 334,017 (19,625) 319,995 Total General Government 1,808,919 1,692,268 (116,651) 1,560,674 Public Safety Police Protection: Personal services 3,084,409 2,909,028 (175,381) 2,821,642 Supplies 79,154 78,233 (921) 46,277 Services and other charges 609,030 560,925 (48,105) 270,014 Capital outlay 30,540 58,769 28,229 68,460 Total Police Protection 3,803,133 3,606,955 (196,178) 3,206,393 Fire Protection: Personal services 299,653 264,362 (35,291) 272,770 Supplies 28,382 29,080 698 24,565 Services and other charges 161,154 158,964 (2,190) 32,093 Capital outlay 43,680 39,887 (3,793) 36,448 Total Fire Protection $532,869 $492,293 ($40,576) $365,876 - 55 - City of Brooklyn Center SS2 General Fund SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL (Continued For the Year Ended December 31, 1994 next page) 1994 Actual Over or Under(-) 1993 Budget Actual Budget Actual Public Safety (continued) Protective Inspection: Personal services $262,885 $251,014 ($11,871) $257,805 Supplies 1,550 3,382 1,832 587 Services and other charges 28,072 15,341 (12,731) 6,131 Capital outlay 850 (850) Total Protective Inspection 293,357 269,737 (23,620) 264,523 Emergency Preparedness: Personal services 35,083 31,769 (3,314) 30,419 Supplies 1,400 765 (635) 472 Services and other charges 9,660 7,971 (1,689) 2,880 Total Emergency Preparedness 46,143 40,505 (5,638) 33,771 Total Public Safety 4,675,502 4,409,490 (266,012) 3,870,563 Public Works Engineering Department: Personal services 492,476 315,313 (177,163) 459,526 Supplies 4,400 7,510 3,110 4,220 Services and other charges 23,856 22,924 (932) 5,705 Charged to other funds (206,914) (195,949) 10,965 (140,069) Total Engineering Dept. 313,818 149,798 (164,020) 329,382 Street Department: Personal services 558,120 456,211 - (101,909) 547,694 Supplies 165,300 142,988 (22,312) 164,977 Services and other charges 625,163 581,568 (43,595) 335,037 Capital outlay 0 51,324 Charged to other funds (100,000) (100,000) 0 (100,000) Total Street Dept. 1,248,583 1,080,767 (167,816) 999,032 Maintenance Shop: Personal services 0 179,290 Supplies 0 222,175 Services and other charges 0 23,390 Capital outlay 0 2,918 Total Maintenance Shop 0 0 0 427,773 Total Public Works $1,562,401 $1,230,565 ($331,836) $1,756,187 - 56 - City of Brooklyn Center SS=2 General Fund SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL (Continued For the Year Ended December 31, 1994 next page) 1994 Actual Over or Under(-) 1993 Budget Actual Budget Actual Community Services Social Services: Service and other charges $41,572 $41,495 ($77) $41,325 Total Social Services 41,572 41,495 (77) 41,325 Total Community Services 41,572 41,495 (77) 41,325 Parks and Recreation Administration: Personal services 189,325 186,154 (3,171) 274,464 Supplies 13,000 8,084 (4,916) 7,873 Services and other charges 35,991 33,918 (2,073) 24,698 Total Administration 238,316 228,156 (10,160) 307,035 Adult Programs: Personal services 139,350 140,005 655 104,389 Supplies 49,770 40,800 (8,970) 51,631 Services and other charges 182,120 142,015 (40,105) 150,623 Capital outlay 0 296 Total Adult Programs 371,240 322,820 (48,420) 306,939 Teen Programs: Personal services 8,679 8,495 (184) 7,735 Supplies 496 1,301 805 765 Services and other charges 6,417 5,740 (677) 5,710 Total Teen Programs 15,592 15,536 (56) 14,210 Children's Programs: Personal services 75,254 73,367 (1,887) 62,093 Supplies 12,861 11,646 (1,215) 10,963 Services and other charges 14,799 13,885 (914) 12,193 Total Children's Programs 102,914 98,898 (4,016) 85,249 General Programs: Personal services 46,731 44,837 (1,894) 35,415 Supplies 1,571 308 (1,263) 6,371 Services and other charges 41,627 40,703 (924) 38,083 Total General Programs $89,929 $85,848 ($4,081) $79,869 - 57 - i City of Brooklyn Center S_2 General Fund SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL (Continued from For the Year Ended December 31, 1994 prior page) 1994 Actual Over or Under(-) 1993 Budget Actual Budget Actual Parks and Recreation (continued) Community Center: Personal services $433,558 $423,919 ($9,639) $405,021 Supplies 67,292 66,905 (387) 61,058 Services and other charges 149,479 158,783 9,304 170,339 Capital outlay 0 8,351 Total Community Center 650,329 649,607 (722) 644,769 Paris Maintenance: Personal services 349,919 300,382 (49,537) 290,314 Supplies 76,400 58,090 (18,310) 73,802 Services and other charges 304,659 291,703 (12,956) 113,208 Capital outlay 6,150 4,439 (1,711) 83,875 j Total Park Maintenance 737,128 654,614 (82,514) 561,199 Total Parks and Recreation 2,205,448 2,055,479 (149,969) 1,999,270 Economic Development Convention Bureau: Services and other charges 206,000 199,982 (6,018) 178,703 Total Economic Development 206,000 199,982 (6,018) 178,703 I Nondepartmental Expenditures not Charged to Departments: Personal services 1,224 1,224 206 Supplies 30,300 25,681 (4,619) 26,441 Services and other charges 393,023 255,064 (137,959) 265,078 I Capital outlay 33,000 30,810 (2,190) 9,078 Total Nondepartmental 456,323 312,779 (143,544) 300,803 Total Expenditures $10,956,165 $9,942,058 ($1,014,107) $9,707,525 i 58 - City of Brooklyn Center, Minnesota SPECIAL REVENUE FUNDS The Special Revenue Funds are established to account for revenues derived from taxes and/or other specific revenue sources. These resources are usually restricted by statute, City Charter or ordinance to finance specific City functions or activities. This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the related liability is incurred. Earle Brown Farm Tax Increment Financing District: This fund has the authority to collect tax increments which are used for the historic restoration of the Earle Brown Farm and for debt service payments of bonds which also were issued for that purpose. Diseased Tree Removal Fund: This Fund was established to account for the collection of resources and expenditure of these resources for diseased tree control. Costs are reimbursed by private property owners, or the General Fund, depending upon where the tree was located. Community Development Block Grant Fund: The Fund was established to account for funds received under Title I of the,Housing and Community Development Act of 1974 . Transfers are made from this Fund to the Economic Development Authority Fund where accounting for project costs takes place. - 59 - City of Brooklyn Center B6=1 Special Revenue Funds COMBINING BALANCE SHEET December 31, 1994 Earle Brown Tax Incr. Diseased Community Financing Tree Development Totals District Removal Block Grant 1994 1993 ASSETS Cash and investments $53,189 $53,189 $39,528 Accounts receivable $280,000 572 280,572 460 Deferred special assessments 21,010 21,010 26,430 Delinquent special assessments 1,145 1,145 1,100 Due from other governments $65,816 65,816 148,006 TOTAL ASSETS $280,000 $75,916 $65,816 $421,732 $215,524 a, LIABILITIES AND FUND BALANCES (DEFICITS) o ' Liabilities Accounts payable $19,414 $19,414 $2,602 Due to other governments 97,973 97,973 76,404 Due to other funds $65,816 65,816 147,584 Temporary improvement notes 1,624,344 1,624,344 1,371,744 Deferred revenue $22,155 22,155 27,530 Advances from other funds 698,143 698,143 698,143 Total Liabilities 2,439,874 22,155 65,816 2,527,845 2,324,007 Fund Balances(Deficits) Unreserved (2,159,874) 53,761 0 (2,106,113) (2,108,483) Total Fund Balances (Deficits) (2,159,874) 53,761 0 (2,106,113) (2,108,483) TOTAL LIABILITIES AND FUND BALANCES (DEFICITS) $280,000 $75,916 $65,816 $421,732 $215,524 I I City of Brooklyn Center B_2 Special Revenue Funds (Continued next page) COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL For the Year Ended December 31, 1994 Earle Brown Farm Tax Increment District Diseased Tree Removal Over Over Under(-) Under(-) Budget Actual Budget Budget Actual Budget Revenues Property taxes $1,350,000 $1,514,763 $164,763 Special assessments $15,000 $14,888 ($112 Total Property Taxes 1,350,000 1,514,763 164,763 15,000 14,888 (112) Intergovernmental: Federal grants Total Intergovernmental Charges for services: Fees 15,000 18,413 3,413 I Total Charges for Services 15,000 18,413 3,413 Miscellaneous: I Investment earnings 1,500 2,233 733 j Total Miscellaneous 1,500 2,233 733 Total Revenues 1,350,000 1,514,763 164,763 31,500 35,534 4,034 Expenditures Services and other charges 1,100 72,270 71,170 28,000 19,159 (8,841) Interest 104,000 81,656 (22,344) Total Expenditures 105,100 153,926 48,826 28,000 19,159 (8,841) Excess of Revenues Over Expenditures 1,244,900 1,360,837 115,937 3,500 16,375 12,875 Other Financing Sources or Uses H Operating transfers out (1,403,179) (1,374,842) 28,337 i Excess or Deficiency(-)of Revenues and Other Sources Over Expenditures and Other Uses (158,279) (14,005) 144,274 3,500 16,375 12,875 ,I Fund Balances(Deficits)January 1 (2,145,869) (2,145,869) 0 37,386 37,386 0 Fund Balances(Deficits)December 31 ($2,304,148) ($2,159,874) $144,274 $40,886 $53,761 $12,875 i i - 61 - City of Brooklyn Center B6=2 Special Revenue Funds (Continued from prior page) COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL For the Year Ended December 31, 1994 Community Development Block Grant Totals Over Over Under(-) 1994 1994 Under(-) 1993 Budget Actual Budget Budget Actual Budget Actual Revenues Property taxes $1,350,000 $1,514,763 $164,763 $1,508,964 Special assessments 15,000 14,888 112 17,461 Total Property Taxes 1,365,000 1,529,651 164,651 1,526,425 Intergovernmental: Federal grants $235,627 $184,836 ($50,791) 235,627 184,836 50,791 240,781 Total Intergovernmental 235,627 184,836 (50,791) 235,627 184,836 (50,791) 240,781 Charges for services: Fees 15,000 18,413 3,413 11,483 Total Charges for Services 15,000 18,413 3,413 11,483 Miscellaneous: Investment earnings 1,500 2,233 733 1,838 Total Miscellaneous 1,500 2,233 733 1,838 Total Revenues 235,627 184,836 (50,791) 1,617,127 1,735,133 118,006 1,780,527 Expenditures Services and other charges 29,100 91,429 62,329 24,440 Interest 104,000 81,656 (22,344) 97,653 Total Expenditures 133,100 173,085 39,985 122,093 Excess of Revenues Over Expenditures 235,627 184,836 (50,791) 1,484,027 1,562,048 78,021 1,658,434 Other Financing Sources or Uses H Operating transfers out (235,627) (184,836) 50,791 (1,638,806) (1,559,678) 79,128 (1,525,591) Excess or Deficiency(-)of Revenues and Other Sources Over Expenditures and Other Uses 0 0 0 (154,779) 2,370 157,149 132,843 Fund Balances(Deficits)January 1 0 0 0 (2,108,483) (2,108,483) 0 (2,241,326) Fund Balances(Deficits)December 31 $0 $0 $0 ($2,263,262} _($2,106,113) 1151,149 ($2,108,483) - 62 - City of Brooklyn Center, Minnesota DEBT SERVICE FUNDS The Debt Service Funds were established to account for the payment (from taxes and other resources) of interest and principal on long- term general obligation debt. This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the principal and interest are due. The City's Debt Service funds included in this section are: State Aid Street Bonds Debt Service Fund: This Fund accounts for the accumulation of state aid allotments, for payment of principal and interest on bonds issued in 1991 to finance a comprehensive improvement and upgrading 69th Avenue North as a state aid route. Tax Increment Bonds of 1985 & 1991 Funds: These Funds were established to account for the accumulation of resources for payment of principal and interest on general obligation bonds issued in 1985 and 1991 to finance the purchase and redevelopment of the historic Earle Brown Farm in Brooklyn Center. Refunding Tax Increment Bonds of 1992 Fund: This fund was established to account for the resources that will be used to advance refund the Tax Increment Bonds of 1985. Refunding Bonds of 1987 Fund: This Fund was established to account for the collection of special assessments for the payment of principal and interest on general obligation bonds. The bonds were sold during 1987 to refund Improvement Bonds of 1982 . Street Improvement Bonds of 1994 Fund: This Fund was established to account for the collection of special assessments and property taxes for the payment of principal and interest on general obligation improvement bonds. The bonds were sold during 1994 to finance the first year of the City's neighborhood street improvement program. - 63 - City of Brooklyn Center CC=1 Debt Service Funds COMBINING BALANCE SHEET December 31, 1994 Refunding Tax Tax Tax Street Increment Increment Increment Refunding Improvement Bonds Bonds Bonds Bonds Bonds Totals of 1985 of 1991 of 1992 of 1987 of 1994 1994 1993 ASSETS Cash and investments $502,773 $525,819 $104,712 $112,782 $1,246,086 $1,403,812 Temporary improvement notes 104,621 109,417 21,790 23,471 259,299 258,456 Special assessments receivable: Deferred 287,808 157,607 445,415 428,305 Delinquent 7,922 7,922 6,685 ' Restricted Investments $4,182,719 4,182,719 4,184,451 rn TOTAL ASSETS $607,394 $635,236 $4,182,719 $422,232 $293,860 $6,141,441 $6,281,709 LIABILITIES AND FUND BALANCES Liabilities Deferred revenue $295,730 $157,607 $453,337 $434,990 Total Liabilities 295,730 157,607 453,337 434,990 Fund Balances Reserved for debt service $607,394 $635,236 $4,182,719 126,502 136,253 5,688,104 5,846,719 Total Fund Balances 607,394 635,236 4,182,719 126,502 136,253 5,688,104 5,846,719 TOTAL LIABILITIES AND FUND BALANCES $607,394 $635,236 $4,182,719 $422,232 $293,860 $6,141,441 $6,281,709 City of Brooklyn Center CC=2 Debt Service Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES For the Year Ended December 31, 1994 State Tax Tax Tax Street Aid Increment Increment Increment Refunding Improvement Street Bonds Bonds Bonds Bonds Bonds Totals Bonds of 1985 of 1991 of 1992 of 1987 of 1994 1994 1993 Revenues Property taxes $220,998 Special assessments $196,867 $131,829 $328,696 233,087 Intergovenmental revenue 58,410 Investment earnings $8,259 $6,335 217,891 28,200 1,191 261,876 332,322 Total Revenues 8,259 6,335 217,891 225,067 133,020 590,572 844,817 Expenditures Principal $145,000 185,000 350,000 100,000 780,000 1,710,000 Interest 164,071 380,698 304,250 219,623 11,913 1,080,555 1,186,585 Lnn Fiscal agent fees 400 536 400 300 1,636 1,685 ' Total Expenditures 309,471 566,234 654,650 219,623 111,913 300 1,862,191 2,898,270 Excess or Deficiency(-)of Revenues Over Expenditures (309,471) (557,975) (648,315) (1,732) 113,154 132,720 (1,271,619) (2,053,453) Other Financing Sources or Uses(-) Proceeds from sale of bonds 3,533 3,533 0 Operating transfers in 309,471 600,000 650,000 1,559,471 1,746,580 Operating transfers out 0 (240,000) Total Other Financing Sources or Uses(-) 309,471 600,000 650,000 3,533 1,563,004 1,506,580 Excess or Deficiency of Revenues and Other Sources over Expenditures and Other Uses 0 42,025 1,685 (1,732) 113,154 136,253 291,385 (546,873) Fund Balances January 1 0 565,369 633,551 4,184,451 463,348 0 5,846,719 7,279,029 Equity Transfer In(Out) (450,000) (450,000) (885,437) Fund Balances December 31 $0 $607,394 $635,236 $4,182,719 $126,502 $136,253 $5,688,104 $5,846,719 City of Brooklyn Center, Minnesota CAPITAL PROJECTS FUNDS The Capital Projects Funds are established to account for all resources used for the construction or acquisition of capital q P facilities by the City except those financed by Enterprise Funds. This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in the accounting tin g period in which they become available and measurable. Expenditures are recognized in the accounting period in which the related liability is incurred. The City's Capital Projects Funds included in this section are: Capital Improvements Fund: This Fund was established -in 1968 to provide funds, and to account for the expenditure of such funds, for major capital outlays including, but not be limited to, construction or acquisition of major permanent facilities having a relatively long life; and/or to reduce debt incurred for capital outlays. The financing sources of the Fund include ad valorem taxation, transfers from other Funds, issuance of bonds, federal and state grants, and investment earnings. Municipal State Aid for Construction Fund: This Fund was established to account for the state allotment of gasoline tax collections used for transportation related construction projects. Special Assessment Construction Fund: This Fund was established to account for the resources and expenditures required for the acquisition and construction of capital facilities or improvements financed wholly or in part by special assessments levied against benefitted properties. Housing and Redevelopment Authority Fund (H.R.A. ) : This fund has authority to levy an ad valorem property tax for the purpose of conducting housing and redevelopment projects. These projects are now done in the E.D.A. Fund and all tax proceeds are transferred to that fund. Economic Development Authority Fund: This Fund was established to account for the Economic Development Authority (E.D.A. ) of Brooklyn Center. The E.D.A. carries out activities which previously were done by the H.R.A. , plus it has authority to operate an enterprise. The Earle Brown Heritage Center operates under this authority and a statement of its operations can be found in the enterprise fund section of this report. The E.D.A. also does redevelopment and housing projects, funded by transfers from the C.D.B.G. and H.R.A. funds. - 66 - City of Brooklyn Center D-1 Capital Projects Funds COMBINING BALANCE SHEET December 31, 1994 I Municipal State Aid Special Economic Capital for Assessment Development Totals Improvements Construction Construction Authority Fund Fund Fund Fund 1994 1993 ASSETS Cash and investments $4,735,988 $2,185,206 $294,153 $812,849 $8,028,196 $7,976,715 Temporary improvement notes 985,503 454,716 377,232 1,817,451 1,598,423 Accounts Receivable 67,698 1,494 69,192 15,202 Taxes receivable 9,648 9,648 7,162 Special assessments: Deferred 1,018,095 1,018,095 997,804 Delinquent 46,181 46,181 31,423 Due from other funds 37,250 65,816 103,066 147,584 Due from other governments 1,968,764 1,968,764 1,644,536 Interfund loans: Municipal liquor 158,984 158,984 179,944 Golf course 1,150,000 1,150,000 1,080,000 Earle Brown T.I.F. District 593,069 593,069 593,069 Restricted investments 1,000,000 1,000,000 1,000,000 TOTAL ASSETS $7,030,475 $5,239,005 $1,426,127 $2,267,039 $15,962,646 $15,271,862 LIABILITIES AND FUND BALANCES(DEFICITS) i Liabilities Accounts payable $41,577 $6,836 $3,925 $19,920 $72,258 $62,622 Contracts payable 86,450 41,035 127,485 Due to other governments 548 Due to other funds 37,250 37,250 Accrued salaries and wages 770 319 841 2,655 4,585 2,400 Accrued vacation and sick pay 18,640 18,640 17,519 j Temporary improvement notes 1,107,541 1,107,541 1,036,659 Deferred revenue 1,968,764 1,064,276 9,648 3,042,688 2,655,925 Total Liabilities 128,797 2,016,954 2,213,833 50,863 4,410,447 3,775,673 . I Fund Balances(Deficits) Reserved: Unexpended appropriations 223,951 223,951 679,551 Dedicated housing account 1,000,000 1,000,000 1,000,000 Advances to other funds 1,308,984 593,069 1,902,053 1,853,013 Unreserved 5,368,743 2,628,982 (787,706) 1,216,176 8,426,195 7,963,625 Total Fund Balances(Deficits) 6,901,678 3,222,051 (787,706) 2,216,176 11,552,199 11,496,189 TOTAL LIABILITIES AND FUND BALANCES(DEFICITS) $7,030,475 $5,239,005 $1,426,127 $2,267,039 $15,962,646 $15,271,862 - 67 - City of Brooklyn Center D-2 Capital Projects Funds COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES For the Year Ended December 31,1994 Municipal Housing State Aid Special and Economic Capital for Assessment Redevelop Development Improvements Construction Construction Fund Authority Totals Fund Fund Fund Authority Fund 1994 1993 Revenues Property taxes $115,104 $123,443 $238,547 $262,432 Special assessments $252,510 252,510 322,072 Intergovernmental $488,957 17,835 305,306 812,098 213,458 Investment earnings $429,653 151,699 16,912 96,226 694,490 746,920 Miscellaneous 1,045 26,786 27,831 699,144 Total Revenues 430,698 640,656 269,422 132,939 551,761 2,025,476 2,244,026 Expenditures Personal services 29,134 28,631 148,762 151,491 358,018 152,008 Supplies 259 12 2,000 932 3,203 14,363 Services and other charges 143,415 59,558 86,110 362,609 651,692 770,330 Capital outlays 433,451 246,122 555,408 214,707 1,449,688 2,188,642 Interest 109,116 16 109,132 113,781 Total Expenditures 606,259 334,323 901,396 729,755 2,571,733 3,239,124 Excess or Deficiency(-)of Revenues Over Expenditures (175,561) 306,333 (631,974) 132,939 (177,994) (546,257) (995,098) Other Financing Sources or Uses(-) Proceeeds from sale of bonds 824,980 824,980 Operating transfers in 226,744 787,775 1,014,519 395,221 Operating transfers out (470,000) (399,471) (226,744) (132,939) (1,229,154) (536,020) Total Other Financing Sources or Uses(-) (470,000) (172,727) 598,236 (132,939) 787,775 610,345 (140,799) Excess or Deficiency(-)of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses (645,561) 133,606 (33,738) 0 609,781 64,088 (1,135,897) Fund Balance(Deficits)January 1 7,547,239 3,088,445 (753,968) 1,614,473 11,496,189 12,632,086 Equity Transfers In(Out) (8,078) (8,078) Fund Balance(Deficits)December 31 $6,901,678 $3,222,051 ($787,706) $0 $2,216,176 $11,552,199 $11,496,189 - 68 - City of Brooklyn Center S-3 Capital Improvements Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beginning to December 31, 1994 Project Over(-) Under 1994 to Date Expended Type of Project Appropriations Expenditures Expenditures Appropriations Fire training facility $70,000 $0 $50,000 $20,000 Central garage improvements 1,128,716 476,498 498,811 629,905 Replat 1-94 property 33,000 2,020 38,561 (5,561) ' Hockey field lights 14,400 15,030 15,030 (630) Interim city hall remodelling 440,000 24,454 24,454 415,546 Pedestrian bridge repair 84,470 1,717 1,717 82,753 Park playground equipment 176,836 84,151 84,151 92,685 ADA curb removals 63,170 2,389 2,389 60,781 Totals $210101592 $6061259 $715,113 $1,295,479 City of Brooklyn Center SS=4 Municipal State Aid Construction Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beoinnin4 to December 31, 1994 Project Over(-) Under 1994 to Date Expended Project Appropriation Expenditures Expenditures Appropriations Humboldt Avenue improvements 5,200 25,113 31,919 (26,719) 69th Avenue soil correction 997,737 3,688 966,291 31,446 69th Avenue reconstruction 585,328 (93,064) 539,751 45,577 69th Avenue landscaping, phase 1 315,870 11,490 267,243 48,627 69th Avenue landscaping, phase II 70,523 55,124 55,124 15,399 Pavement management program 30,070 12,317 34,056 (3,986) Shingle Creek Parkway overlay 282,827 310,205 310,205 (27,378) o Misc. sidewalk replacement 14,700 820 820 13,880 69th Ave. & Shingle Cr. Pkwy. bridge replacement 1,802 1,802 (1,802) Brooklyn Boulevard street improvement 230,745 6,828 6,828 223,917 Totals $2,533,000 $334,323 $2,214,039 $318,961 • I City of Brooklyn Center SS-5 Special Assessment Construction Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beginning to December 31, 1994 Project Over(-) Under 1994 to Date Expended Type of Project Appropriations Expenditures Expenditures Appropriations 69th Ave reconstruction $2,486,162 ($37,250) $2,493,687 ($7,525) James, Knox & 54th Ave. street improvements 230,686 232,597 232,612 (1,926) 57th Ave. street improvements 4,574 4,574 (4,574) Humboldt Avenue street improvements 13,075 13,075 (13,075) 73rd Avenue street improvements 2,489 2,489 (2,489) Northwest area street improvements 595,346 594,979 602,396 (7,050) Woodbine neighborhood street improvements 16,432 16,432 (16,432) Totals $3,312,194 $826,896 $3,365,265 ($53,071) i City of Brooklyn Center, Minnesota ENTERPRISE FUNDS The Enterprise Funds were established to account for the financing of self supporting activities of the City which render services on a user charge basis to the general public. Revenues and expenses in these Funds are recognized on the accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned and become objectively measurable. Expenses are recognized in the period incurred, if objectively measurable. The City's Enterprise Funds included in this section are: Municipal Liquor Fund: This Fund accounts for the operations of the City's three municipal off-sale liquor stores. Golf Course Fund: This fund accounts for operations of Centerbrook Golf Course, a 9 hole, par 3 course owned by the City. Earle Brown Heritage Center Fund: This fund accounts for the operation of a pioneer farmstead which has been historically preserved and restored as a modern multipurpose facility. Its convention center can host conferences, trade shows, and concerts seating 1, 000 people in either banquet or theater style. The "Inn On The Farm" is a bed and breakfast with eleven rooms available to complement convention activities or be rented individually. Several of the barns have been restored as unique office settings which have found a niche in the market. Recycling and Refuse Fund: This fund accounts for the operation of a state mandated recycling program. Expansion into refuse collection will take place only when there is a clear advantage to be achieved by it. Water Utilities Fund: This Fund accounts for the provision of water to customers. Administration, wells, water storage, and distribution are included. Sanitary Sewer Fund:' This Fund accounts for the collection and pumping of sanitary sewage through a system of sewer lines and lift stations. Sewage is treated by the Metropolitan Waste Control Commission whose fees represent about 75% of this fund's expenses. Storm Drainage Fund: This Fund accounts for the operations and improvements of the storm water drainage system. It incorporates not only the storm sewer system, but also water structures such as holding ponds and facilities to improve water quality. Fees are based upon the amount of water running off a property and vary with both size and absorption characteristics of the parcel. - 72 - City of Brooklyn Center EE=1 Enterprise Funds (Continued next page) COMBINING BALANCE SHEET December 31, 1994 E. Brown Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center &Refuse Utility Sewer Drainage Totals ASSETS Fund Fund Fund Fund Fund Fund Fund 1994 1993 Current Assets Cash and cash equivalents $44,488 $3,329 $237,617 $71,621 $1,055,146 $3,119,193 $390,943 $4,922,337 $4,810,827 Accounts receivable-net 2,112 194,939 7,302 65,150 126,061 39,842 435,406 491,886 Accrued revenue 27,354 122,412 279,306 106,260 535,332 523,857 Special assessments receivable: Deferred 60,955 931 61,866 86,288 Delinquent 3,590 3,590 3,860 Due from other governments 190,751 749,340 940,091 164,721 Inventories 284,034 6,562 20,909 17,070 328,575 319,790 w Prepaid expenses 2,902 28,479 111,776 143,157 153,342 Total Current Assets 333,536 9,891 481,944 106,277 1,324,323 3,828,018 1,286,385 7,370,374 6,554,571 Restricted Assets Temporary cash investments 3,700,000 300,000 4,000,000 4,000,000 Revenue bond construction account Due from other governments 473,344 473,344 Total Restricted Assets 3,700,000 300,000 473,344 4,473,344 4,000,000 Fixed Assets Mains and lines 8,583,770 6,152,994 1,234,787 15,971,551 14,113,366 Structures 327,595 303,321 9,532,145 4,249,575 1,707,080 16,119,716 15,949,897 Equipment 127,897 35,390 984,071 65,034 36,986 6,736 1,256,114 1,685,236 Land 107,405 1,391,711 925,000 23,938 3,388 287,158 2,738,600 2,738,600 Land improvements 6,719 75,662 2,600 84,981 37,556 569,616 1,806,084 11,441,216 12,924,917, 7,900,448 1,528,681 36,170,962 34,524,655 Less: Allowance for depreciation 227,077 97,273 1,476,320 4,092,009 2,309,435 1,317 8,203,431 7,763,063 Total Fixed Assets 342,539 1,708,811 9,964,896 8,832,908 5,591,013 1,527,364 27,967,531 26,761,592 TOTALS $676,075 $1,718,702 $10,446,840 $106,277 $13,857,231 $9,719,031 $3,287,093 $39,811,249 $37,316,163 E-1 (Continued from E. Brown prior page) Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center &Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund Fund Fund Fund 1994 1993 LIABILITIES AND FUND EQUITY Current Liabilities Accounts payable $108,813 $5,306 $142,922 $565 $40,240 $71,775 $14,006 $383,627 $404,212 Accrued salaries payable 5,808 653 18,409 6,125 1,082 244 32,321 45,173 Accrued vacation and sick pay 23,695 420 11,447 12,837 48,399 43,960 Accrued interest payable 37,760 37,760 Temporary improvement note 389,205 389,205 305,479 Current portion of long-term debt 22,812 72,812 20,959 Total Current Liabilities 161,128 6,379 561,983 565 59,202 72,857 52,010 914,124 819,783 i Current Liabilities payable from .� Resticted Assets Accounts Payable 54,710 54,710 ' Lonca-Term Liabilities Bonds payable 1,830,000 1,830,000 Construction loan 136,172 1,150,000 1,286,172 1,238,965 Total Long-term Liabilities 136,172 1,150,000 1,830,000 3,116,172 1,238,985 Fund Equity Contributions 636,886 9,884,838 4,997,510 5,668,426 21,187,660 21,581,512 Retained earnings(Deficits) - Reserved: Debt Service 90,625 90,625 Special assessments 64,545 931 65,476 90,148 Plant expansion 3,700,000 300,000 4,000,000 4,000,000 Unreserved 378,775 (74,563) 19 105,712 5,035,974 3,676,817 1,259,748 10,382,482 9,585,735 Total Retained Earnings(Deficits) 378,775 (74,563) 19 105,712 8,800,519 3,977,748 1,350,373 14,538,583 13,675,883 Total Fund Equity 378,775 562,323 9,884,857 105,712 13,798,029 9,646,174 1,350,373 35,726,243 35,257,395 TOTALS $676,075 $1,718,702 $10,446,840 $106,277 $13,857,231 $9,719,031 $3,287,093 $39,811,249 $37,316,163 City of Brooklyn Center EE=2 Enterprise Funds (Continued next page) COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1994 E. Brown Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center &Refuse Utility Sewer Drainage Totals Operating Revenues Fund Fund Fund Fund Fund Fund Fund 1994 1993 Sales and user fees $2,698,373 $302,050 $2,248,111 $134,740 $1,053,689 $2,126,822 $685,011 $9,248,796 $8,417,244 Cost of sales 2,023,603 34,550 355,270 2,413,423 2,244,689 Net Operating Revenues 674,770 267,500 1,892,841 134,740 1,053,689 2,126,822 685,011 6,835,373 6,172,555 Operating Expenses Personal services 369,660 124,681 1,144,161 319,984 185,622 102,491 2,246,599 1,999,204 Supplies 8,551 20,713 150,743 554 79,614 18,330 3,178 281,683 234,704 Other services 61,755 46,761 478,017 117,447 160,136 1,454,327 96,228 2,414,671 2,221,486 Insurance 13,318 7,987 41,202 871 12,277 19,312 2,100 97,067 71,671 Utilities 22,234 11,079 141,510 148,962 19,892 343,677 307,402 Rent 35,410 34,448 69,858 69,772 Depreciation 15,717 13,659 343,328 236,850 110,855 888 721,297 795,527 Total Operating Expenses 526,645 224,880 2,333,409 118,872 957,823 1,808,338 204,885 6,174,852 5,699,766 Operating Income(Loss) $148,125 $42,620 ($440,568) $15,868 $95,866 $318,484 $480,126 $660,521 $472,789 I E-2 (Continued from prior page) E. Brown Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center &Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund Fund Fund Fund 1994 1993 Nonoperatina Revenues or Expenses(-) Investment earnings $4,036 $5,137 $266,561 $202,997 $39,930 $518,661 $519,933 Special assessments: Service hookups&delinquencies 16,177 599 16,776 30,407 Other revenue 650 1,431 72 2,153 2,036 Gain (loss) on disposal of fixed assets 716 ($10,952) ($105) (5,063) 11,291 (7,428) (11,541) Interest and fiscal agent fees (14,491) (56,065) (22,701) (30,208) (123,465) (84,491) V Nonoperating Totals (9,089) (67,017) (22,806) 5,137 279,106 214,959 2,294 402,584 467,885 Income Before Operating Transfers 139,036 (24,397) (463,374) 21,005 374,972 533,443 482,420 1,063,105 940,674 Operating Transfers In 124,842 124,842 84,810 Operating Transfers Out (100,000) (100,000) (100,000) Net Income(Loss) 39,036 (24,397) (338,532) 21,005 374,972 533,443 482,420 1,087,947 925,484 Depreciation on contributed assets that reduces contributed capital 338,532 338,532 343,228 Retained Earnings Jan. 1 354,288 4,856 19 84,707 8,572,569 3,663,133 996,311 13,675,883 12,407,171 Equity Transfer from Contributed Capital 55,320 55,320 Equity Transfer In(Out) (14,549) (110,342) (147,022) (218,828) (128,358) (619,099) Retained Earnings December 31 $378,775 ($74,563) $19 $105,712 $8,800,519 $3,977,748 $1,350,373 $14,538,583 $13,675,883 City of Brooklyn Center E;3 Enterprise Funds (Continued next page) COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31, 1994 E. Brown Municipal Goff Heritage Recycling Water Sanitary Storm Liquor Course Center &Refuse Utility Sewer Drainage Totals _Cash flows from operating activities: Fund Fund Fund Fund Fund Fund Fund 1994 1993 Operating income(loss) $148,125 $42,620 ($440,568) $15,868 $95,866 $318,484 $480,126 $660,521 $472,789 Adjustments to reconcile operating income (loss)to net cash provided by(used for) operating activities: Depreciation 15,717 13,659 343,328 236,850 110,855 888 721,297 795,527 Changes in assets and liabilities: Accounts receivable 1,662 24,429 (10,798) 25,869 7,148 (1,227,347) (1,179,037) (278,177) Inventories (9,543) (553) 884 427 (8,785) (35,829) Prepaid expenses (1,579) 8,551 3,213 10,185 (4,754) Accounts payable 30,410 1,662 (47,709) (7,846) 7,995 (19,073) 68,686 34,125 90,709 Accrued salaries and leave 2,289 (2,106) (12,201) 3,095 266 244 (8,413) 31,209 Accrued interest payable 37,760 37,760 Other nonoperating income 650 17,608 671 18,929 32,443 Net cash provided by(used for) operating activities 187,731 55,282 12( 3,286) 2,776 387,710 421,564 639,643 286,582 1,103,917 _Cash flows from noncapital financing activities: Proceeds from borrowings on revolving loan 70,000 83,726 153,726 305,479 Principal repayments on revolving loan (20,960) (20,960) (19,257) Interest paid on revolving loan (14,491) (56,065) (22,701) (93,257) (84,491) Operating transfers in 124,842 124,842 84,810 Operating transfers out 10( 0,000) (100,000) (100,000) Net cash provided by(used for) noncapital financing activities $13( 5,451) $13,935 $185,867 $0 $0 $0 $0 $64,351 $186,541 E-3 (Continued from prior page) E. Brown Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center &Refuse utility Sewer Drainage Totals Fund Fund Fund Fund Fund Fund Fund 1994 1993 Cash flows from capital and related financing activities: Proceeds from bond sale $1,830,000 $1,830,000 Capital contributions $49,850 Equity transfer to Central Garage Fund ($4,334) ($69,057) ($65,524) ($184,509) (79,487) (402,911) Acquisition and construction of capital assets (51,384) (45,455) ($51,838) (576,809) (297,606) (1,131,873) (2,154,965) (1,250,812) Interest paid on revenue bonds (30,208) (30,208) Net cash provided by(used for)capital and related financing activities 5( 5,718) 11( 4,512) 51,838 0 (642,333) (482,115) 588,432 (758,084) (1,200,962) Cash flows from investing activities: 00 i Interest on investments 4,036 $5,137 266,561 202,997 39,930 518,661 519,933 Net cash provided by investing activities 4,036 0 0 5,137 266,561 202,997 39,930 518,661 519,933 Net increase(decrease)in cash and cash equivalents 598 (45,295) 10,743 2,361 11,938 142,446 (11,281) 111,510 609,429 Cash and cash equivalents at beginning of the year 43,890 48,624 226,874 69,260 1,043,208, 2,976,747 402,224 4,810,827 4,201,398 Cash and cash equivalents at end of the year $44,488 $3,329 $237,617 $71,621 $1,055,146 $3,119,193 $390,943 $4,922,337 $4,810,827 NONCASH FINANCING,CAPITAL,AND INVESTING ACTIVITIES Gain(Loss)on disposal of fixed assets ($551) - ($105) - - - - ($656) Gain(Loss)resulting from transfer of fixed assets to the Central Garage Fund 1,267 ($10,952) - - ($5,063) $11,291 ($7,428) (10,885) Fixed Assets transferred to Central Garage Fund, net of depreciation 10,215 41,285 - - 81,498 34,319 48,871 216,188 E-4 City of Brooklyn Center Municipal Liquor Fund STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1994 I 1994 1993 Sales Liquor $867,557 $860,914 Wine 265,032 265,333 Beer 1,397,958 1,318,596 Soft drinks 55,944 57,352 Other merchandise 111,882 113,760 Total Sales 2,698,373 2,615,955 Less: Cost of Sales 2,023,603 1,976,173 Net Operating Revenues 674,770 639,782 Operating Expenses Personal services 369,660 356,468 Supplies 8,551 6,481 Other services 61,755 51,705 Insurance 13,318 31,534 Utilities 22,234 23,119 Rent 35,410 38,896 Depreciation 15,717 29,044 Total Operating Expenses 526,645 537,247 Operating Income 148,125 102,535 Nonoperating Revenue or Expense(-) Investment earnings 4,036 3,124 Other revenue 650 601 Gain on disposal of fixed assets 716 Interest and fiscal agent fees (14,491) (16,193) Total Nonoperating (9,089) (12,468) Operating Transfers to General Fund 100,000 100,000 Net Income (Loss) 39,036 (9,933) Retained Earnings January 1 354,288 364,221 Equity Transfer In (Out) (14,549) Retained Earnings December 31 $378,775 $354,288 - 79 - E-5 City of Brooklyn Center Golf Course Fund STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1994 1994 1993 Operating Revenues Green fees $232,862 $213,469 Rentals 8,542 7,644 Leagues 10,340 8,219 Golf lessons 10,390 11,101 Concessions 18,237 17,348 Merchandise 18,909 19,918 Pop machine 2,394 1,825 Miscellaneous 376 509 Total Operating Revenues 302,050 280,033 Less: Cost of Sales 34,550 29,352 Net Operating Revenues 267,500 250,681 Operating Expenses Personal services 124,681 128,636 Supplies 20,713 16,061 Other services 46,761 17,801 Insurance 7,987 3,767 Utilities 11,079 8,943 Depreciation 13,659 23,236 Total Operating Expenses 224,880 198,444 Operating Income 42,620 52,237 Nonoperating Revenue or Expense(-) Investment earnings 2,332 Loss on disposal of fixed assets (10,952) Interest and fiscal agent fees (56,065) (54,000) Total Nonoperating (67,017) (51,668) Net Income (Loss) (24,397) 569 Retained Earnings(Deficit)January 1 4,856 4,287 Equity Transfer from Contributed Capital 55,320 Equity Transfer In (Out) (110,342) Retained Earnings (Deficit) December 31 ($74,563) $4,856 - 80 - E-6 City of Brooklyn Center Earle Brown Heritage Center Fund STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1994 1994 1993 Operating Revenues Conventions $592,208 $536,118 Catering 1,240,038 946,306 Inn on the Farm 299,539 211,624 Office Rents 116,326 118,045 Total Operating Revenues 2,248,111 1,812,093 Less: Cost of Sales 355,270 239,164 Net Operating Revenues 1,892,841 1,572,929 _Operating Expenses Personal services 1,144,161 914,048 Supplies 150,743 128,897 Other services 478,017 423,723 Insurance 41,202 17,220 Utilities 141,510 128,677 Rent 34,448 30,876 Depreciation 343,328 343,228 Total Operating Expenses 2,333,409 1,986,669 Operating Loss (440,568) (413,740) Nonoperating Revenue or Expense(-) Loss on disposal of fixed assets (105) Interest and fiscal agent fees (22,701) (14,298) Total Nonoperating (22,806) (14,298) Operating Transfers In 124,842 84,810 Net Loss (338,532) (343,228) Depreciation on contributed assets that reduces contributed capital 338,532 343,228 Retained Earnings January 1 19 19 Retained Earnings December 31 $19 $19 - 81 - E-7 City of Brooklyn Center Recycling & Refuse Fund STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1994 1994 1993 Operating Revenues Recycling service fees $134,186 $106,196 Recycling container sales 554 567 Total Operating Revenues 134,740 106,763 Operating Expenses Supplies 554 567 Other services 117,447 103,527 Insurance 871 Total Operating Expenses 118,872 104,094 Operating Income (Loss) 15,868 2,669 Nonoperating Revenues Investment earnings 5,137 4,388 Total Nonoperating 5,137 4,388 Net Income 21,005 7,057 Retained Earnings January 1 84,707 77,650 Retained Earnings December 31 $105,712 $84,707 - 82 - City of Brooklyn Center E_8 Water Utility Fund STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1994 1994 1993 Operating Revenues Service to customers $962,369 $772,401 Sale of meters 33,140 30,346 Penalties 58,180 45,387 Total Operating Revenues 1,053,689 848,134 Operating Expenses Personal services 319,984 317,283 Supplies 79,614 68,699 Contractual services 160,136 133,652 Insurance 12,277 10,564 Utilities 148,962 128,901 Depreciation 236,850 267,279 Total Operating Expenses 957,823 926,378 Operating Income (Loss) 95,866 (78,244) Nonoperating Revenues or Expenses(-) Investment earnings 266,561 280,860 Special assessments (for hookups & delinquencies) 16,177 30,101 Other 1,431 820 Loss on disposal of fixed assets (5,063) Total Nonoperating 279,106 311,781 Net Income 374,972 233,537 Retained Earnings January 1 8,572,569 8,339,032 Equity Transfer In (Out) (147,022) Retained Earnings December 31 $8,800,519 $8,572,569 - 83 - City of Brooklyn Center EE=9 Sanitary Sewer Fund STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1994 1994 1993 Operating Revenues Service to customers $2,126,822 $2,114,429 Operating Expenses Personal services 185,622 182,430 Supplies 18,330 13,999 Contractual services 59,066 66,654 Metro Waste Control Commission Charges 1,395,261 1,364,719 Insurance 19,312 8,586 Utilities 19,892 17,762 Depreciation 110,855 126,055 Total Operating Expenses 1,808,338 1,780,205 Operating Income 318,484 334,224 Nonoperating Revenues Investment earnings 202,997 201,091 Special assessments (for hookups & delinquencies) 599 306 Other 72 615 Gain on disposal of fixed assets 11,291 Total Nonoperating 214,959 202,012 Net Income 533,443 536,236 Retained Earnings January 1 3,663,133 3,126,897 Equity Transfer In (Out) (218,828) Retained Earnings December 31 $3,977,748 $3,663,133 - 84 - City of Brooklyn Center E-10 Storm Drainage Fund STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1994 i 1994 1993 Operating Revenues Service to customers $685,011 $639,837 Total Operating Revenues 685,011 639,837 Operating Expenses Personal services 102,491 100,339 Supplies 3,178 Contractual services 96,228 59,705 Insurance 2,100 Depreciation 888 6,685 Total Operating Expenses 204,885 166,729 Operating Income 480,126 473,108 Nonoperating Revenues or Expense(-) Investment earnings 39,930 28,138 Loss on disposal of fixed assets (7,428) Interest and fiscal agent fees (30,208) Total Nonoperating 2,294 28,138 Net Income 482,420 501,246 Retained Earnings January 1 996,311 495,065 Equity Transfer In (Out) (128,358) Retained Earnings December 31 $1,350,373 $996,311 - 85 - City of Brooklyn Center, Minnesota INTERNAL SERVICE FUNDS Internal Service Funds are used to account, on a cost reimbursement basis, for the financing of goods or services provided by one department to other departments of the City. Revenues and expenses. in these funds are recognized on the accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned and become measurable. Expenditures are recognized in the accounting period in which they are incurred. Public Employees Retirement Fund: This fund provides certain health care insurance benefits for City employees who retire before age 65. Substantially all of the City's full time employees maybe eligible for those benefits from the time they qualify for an unreduced PERA pension until they reach age 65 or become eligible for medicare. Currently investment earnings are sufficient to provide benefits. In the event that future costs would exceed earnings, other funds would be charged for the costs associated with their employees. Central Garage Fund: This fund was established to account for the acquisition and maintenance of all City vehicles and rolling stock equipment. Vehicle and equipment maintenance, repair, and replacement will be provided from rental rates which the Central Garage charges City operating departments for use of the equipment. - 86 - City of Brooklyn Center FF=1 Internal Service Funds COMBINING BALANCE SHEET December 31, 1994 Employee Central Retirement Garage Totals ASSETS Fund Fund 1994 1993 Current Assets Cash and cash equivalents $1,029,964 $2,810,537 $3,840,501 $2,698,363 Accounts receivable 2,710 317 3,027 Inventories 17,874 17,874 Total Current Assets 1,032,674 2,828,728 3,861,402 2,698,363 Fixed Assets Equipment 3,936,720 3,936,720 3,136,597 Less: Allowance for depreciation 1,982,949 1,982,949. 1,635,437 Total Fixed Assets 1,953,771 1,953,771 1,501,160 TOTAL ASSETS $1,032,674 $4,782,499 $5,815,173 $4,199,523 LIABILITIES AND FUND EQUITY Current Liabilities Accounts payable $15,751 $15,751 Accrued salaries payable 3,565 3,565 Accrued vacation and sick pay 21,099 21,099 Accrued health liability $205,876 205,876 $216,544 Total Current Liabilities 205,876 40,415 246,291 216,544 Fund Equity Contributions: Transfers from: General Fund 950,000 950,000 750,000 Debt Service Funds 1,335,437 1,335,437 885,437 Capital Projects Funds 8,078 8,078 Enterprise Funds 588,304 588,304 General Fixed Asset Account Group 1,232,536 1,232,536 1,501,160 Total Contributions 4,114,355 4,114,355 3,136,597 Retained Earnings: Unreserved 826,798 627,729 1,454,527 846,382 Total Fund Equity 826,798 4,742,084 5,568,882 3,982,979 TOTAL LIABILITIES AND FUND EQUITY $1,032,674 $4,782,499 $5,815,173 $4,199,523 - 87 - City of Brooklyn Center F-2 Internal Service Funds COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1994 Employee Central Retirement Garage Totals Fund Fund 1994 1993 Operating Revenues Billings to departments $1,005,914 $1,005,914 Sales 24,498 24,498 Total Operating Revenues 1,030,412 1,030,412 Operating Expenses Personal services $80,598 196,686 277,284 $39,450 Supplies 180,356 180,356 Other services 54,748 54,748 2,000 Insurance 26,037 26,037 Depreciation 318,413 318,413 Total Expenses 80,598 776,240 856,838 41,450 Operating Income (Loss) (80,598) 254,172 173,574 (41,450) Nonoperating Revenue or Expense (-) Investment Earnings 61,014 100,258 161,272 61,886 Other 499 499 Loss on sale of fixed assets (2,458) (2,458) Total Nonoperating 61,014 98,299 159,313 61,886 Net Income (Loss) (19,584) 352,471 332,887 20,436 Depreciation on contributed assets that reduces contributed capital 275,258 275,258 Retained Earnings January 1 846,382 846,382 825,946 Retained Earnings December 31 $826,798 $627,729 $1,454,527 $846,382 - 88 - City of Brooklyn Center FF=3 Internal Service Funds COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31, 1994 Employee Central Retirement Garage Totals Fund Fund 1994 1993 Cash flows from operating activities: Operating income (loss) ($80,598) $254,172 $173,574 ($41,450) Adjustments to reconcile operating income J � (loss)to net cash provided by (used for) operating activities: Depreciation 318,413 318,413 Loss on sale of fixed assets 2,458 2,458 Changes in assets and liabilities: Accounts receivable (2,710) (317) (3,027) Inventories (17,874) (17,874) Accounts payable 15,751 15,751 Accrued salaries and leave 24,664 24,664 Accrued health insurance liability (10,668) (10,668) 25,454 Other nonoperating income 499 499 Net cash provided by (used for) operating activities (93,976) 597,766 503,790 (15,996) Cash flows from capital and related financing activities: Capital contributions 1,060,989 1,060,989 1,635,437 Acquisition of fixed assets (583,913) (583,913) Net cash provided by capital and related financing activities: 477,076 477,076 1,635,437 Cash flows from investing activities: Interest on investments 61,014 100,258 161,272 61,886 Net cash provided by investing activities 611-014 100,258 161,272 61,886 Net increase (decrease) in cash and cash equivalents (32,962) 1,175,100 1,142,138 1,681,327 Cash and cash equivalents at beginning of the year 1,062,926 1,635,437 2,698,363 1,017,036 Cash and cash equivalents at end of the year $1,029,964 $2,810,537 $3,840,501 $2,698,363 NONCASH FINANCING, CAPITAL, AND INVESTING ACTIVITIES Contribution of fixed assets from other funds - $216,188 Fixed Assets transferred to General Fixed Assets Account Group, net of depreciation - 24,161 - 89 - City of Brooklyn Center, Minnesota AGENCY FUNDS Agency Funds are established to account for assets held by the City as an agent for other City Funds, governments, or individuals. The Agency Funds are maintained on the modified accrual basis of accounting. The City's Agency fund included in this section is: Employee Deferred Compensation Fund: This fund was established to account for funds on deposit with the trustees who administer the City sponsored deferred compensation plan. - 90 - City of Brooklyn Center G Employee Deferred Compensation Fund STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the Year Ended December 31, 1994 December 31, December 31, 1993 1994 Balance Additions Deductions Balance ASSETS Investments for deferred compensation plans held by trustees (1) $2,532,735 $263,326 $160,335 $2,635,726 TOTAL ASSETS $2,532,735 $263,326 $160,335 $2,635,726 LIABILITIES Due to employees for deferred compensation $2,532,735 $263,326 $160,335 $2,635,726 TOTAL LIABILITIES $2,532,735 $263,326 $160,335 $2,635,726 (1) Investments are reported at market value. - 91 - City of Brooklyn Center, Minnesota GENERAL FIXED ASSET ACCOUNT GROUP The General Fixed Asset Account Group was established to account for the City's fixed assets which are not accounted for in an enterprise fund, and which are tangible in nature, have a life longer than the current fiscal year, and have a significant value. Depreciation is not recorded on those assets. - 92 - City of Brooklyn Center S=6 SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY SOURCE For the Year Ended December 31, 1994 January 1, December 31, 1994 1994 Balance Acquisitions " Disposals Balance Investments in General Fixed Assets Land $2,369,801 $2,369,801 Buildings and improvements 4,944,348 $472,886 5,417,234 Park improvements 2,953,620 99,181 $13,697 3,039,104 Furniture 995,626 153,000 34,385 1,114,241 Departmental equipment 996,945 74,214 25,730 1,045,429 Total Investments in General Fixed Assets $12,260,340 $799,281 $73,812 $12,985,809 Sources of Investments General Indebtedness $1,115,247 $6,714 $1,108,533 General Fund revenues 5,178,647 $180,311 31,178 5,327,780 Liquor store income 169,051 1,017 168,034 Contributions 181,767 24,161 1,094 204,834 Capital projects funds 4,794,929 594,809 28,868 5,360,870 Federal grants 820,699 4,941 815,758 Total Sources of Investments $12,260,340 $799,281 $73,812 $12,985,809 * Includes $24,161 transfer of fixed assets from the Central Garage Internal Service Fund. - 93 - S-7 City of Brooklyn Center SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 1994 Buildings and Park Furniture and Function Land Improvements Improvements Equipment Total General government 1 $495,501 $495,501 Government buildings $303,770 $4,790,589 $286,845 45,305 5,426,509 Public safety 50,450 1,096,677 1,147,127 Public works 604 185,807 186,411 Recreation 264,995 264,995 Parks 2,066,031 575,591 2,752,259 71,385 5,465,266 Totals $2,369,801 $5,417,234 $3,039,104 $2,159,670 $12,985,809 S-8 City of Brooklyn Center SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY For the Year Ended December 31, 1994 General Fixed General Fixed Assets Assets January 1, December 31 , Function 1994 Additions Deductions 1994 General government $4041910 $971720 $7,129 $495,501 Government buildings 4,939,337 494,142 6,970 5,426,509 Public safety 1 ,1251368 50,770 29,011 1 ,147,127 Public works 1471465 381946 1861411 Recreation 294,481 1,216 30,702 264,995 Parks 5,348,779 116,487 5,465,266 Totals $1212601340 $799,281 $73,812 $12,985,809 City of Brooklyn Center, Minnesota GENERAL LONG-TERM DEBT ACCOUNT GROUP The General Long Term Debt Account Group was established to account for the City's unmatured general obligation long term debt that is secured by the full faith and credit of the City and is not the primary obligation of an Enterprise Fund of the City. - 96 - I H City of Brooklyn Center COMPARATIVE STATEMENT OF GENERAL LONG-TERM DEBT December 31, 1994 and 1993 December 31, 1994 1993 Amounts Available and to be Provided Amounts available in Debt Service Funds $5,688,104 $5,846,719 Amounts to be provided: From future tax levies 747,245 From future tax increments 8,659,651 9,048,281 From future gas tax allocations 2,605,000 2,750,000 Total Available and to be Provided $17,700,000 $17,645,000 General Long-Term Debt Payable State Aid Street Bonds $2,605,000 $2,750,000 Special Assessment Bonds 1,010,000 275,000 Tax Increment Bonds 14,085,000 14,620,000 Total General Long-Term Debt $17,700,000 $17,645,000 i - 97 - City of Brooklyn Center 1 SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY December 31, 1994 State Aid Special Total Debt Street Bonds Assessment Bonds. Tax Increment Bonds Service Requirements Year Principal Interest Principal Interest Principal Interest Principal Interest 1995 $150,000 $156,325 $85,000 $48,521 $590,000 $871,130 $825,000 $1,075,976 1996 160,000 147,872 115,000 43,608 670,000 831,995 945,000 1,023,475 1997 170,000 138,588 120,000 38,065 1,140,000 777,523 1,430,000 954,176 1998 180,000 128,478 80,000 33,365 1,270,000 705,825 1,530,000 867,668 00 1999 190,000 117,560 80,000 29,605 1,450,000 622,383 1,720,000 769,548 2000 205,000 105,706 85,000 25,560 1,610,000 526,271 1,900,000 657,537 2001 220,000 92,740 85,000 21,289 1,810,000 416,806 2,115,000 530,835 2002 230,000 78,788 85,000 16,954 2,005,000 292,282 2,320,000 388,024 2003 245,000 63,821 90,000 12,403 2,115,000 155,820 2,450,000 232,044 2004 265,000 47,496 90,000 7,632 1,425,000 42,750 1,780,000 97,878 2005 285,000 29,616 95,000 2,612 380,000 32,228 2006 305,000 10,141 305,000 10,141 $2,605,000 $1,117,131 $1,010,000 $279,614 $14,085,000 $5,242,785 $17,700,000 $6,639,530 City of Brooklyn Center, Minnesota STATISTICAL SECTION j The statistical section presents comparative statistical data for the past ten years, and other pertinent information involving taxes, revenues, expenditures, bonded debt, property valuations, insurance coverage and miscellaneous statistics. This information is intended to be useful and of interest to investors in City bonds, financial institutions, and others interested in municipal government financial statistics. - 99 - City of Brooklyn Center TABLE 1 GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) Last Ten Fiscal Years Fiscal General Public Public Community Parks and Economic Non- Total Year Government Safety Works Services Recreation Development Departmental Expenditures 1985 $1,283,050 $2,143,843 $1,560,842 $34,326 $1,389,075 $416,937 $6,828,073 1986 1,487,876 2,28 8;062 1,549,584 45,294 1,405,020 378,688 7,154,524 1987 1,532,185 2,604,773 1,552,532 48,185 1,597,901 313,860 7,649,436 1988 1,768,607 2,716,205 1,768,918 69,117 1,706,516 $162,271 310,475 8,502,109 0 1989 1,793,495 3,103,222 1,754,800 81,043 1,814,391 168,305 347,315 9,062,571 0 1990 1,570,143 3,474,108 1,866,847 114,633 1,842,294 169,942 396,550 9,434,517 1991 1,591,108 3,950,862 1,827,052 104,706 1,870,385 177,179 414,149 9,935,441 1992 1,797,895 3,938,920 1,594,190 114,579 1,783,811 187,606 273,273 9,690,274 1993 1,560,674 3,870,563 1,756,187 41,325 1,999,270 178,703 300,803 9,707,525 1994 $1,692,268 $4,409,490 $1,230,565 $41,495 $2,055,479 $199,982 $312,779 $9,942,058 (1) Funds included in this table are the General Fund. City of Brooklyn Center TABLE 2 GENERAL GOVERNMENTAL _ REVENUES AND OTHER FINANCING SOURCES BY SOURCE (1) Last Ten Fiscal Years General Other Fiscal Property Licenses Intergovem- Charges for Court Financing Total Year Taxes & Permits mental Services Fines Misc. Sources Revenue 1985 $2,444,153 $387,806 $2,618,957 $979,543 $187,045 $348,316 $311,926 $7,277,746 1986 2,566,220 411,406 2,866,442 965,527 224,753 318,453 341,403 7,694,204 1987 2,541,016 345,019 3,060,252 1,114,203 269,903 310,613 166,888 7,807,894 1988 3,318,656 329,783 3,078,491 1,215,635 243,952 363,918 337,871 8,888,306 i 1989 3,325,101 365,247 3,628,255 1,124,167 278,812 425,356 176,505 9,323,443 ' 1990 3,854,798 297,495 3,201,888 919,537 215,804 443,623 174,925 9,108,070 1991 4,274,089 311,751 2,926,570 881,213 202,090 360,800 877,477 9,833,990 1992 4,291,322 332,186 3,133,495 794,876 148,701 301,771 620,000 9,622,351 1993 5,006,710 300,480 3,T67,214 838,883 140,104 279,211 295,000 10,027,602 1994 $5,703,773 $317,620 $3,353,247 $825,959 $113,573 $241,570 $190,000 $10,745,742 (1) Funds included in this table are the General Fund. City of Brooklyn Center TABLE 3 TAX LEVIES AND TAX COLLECTIONS (1) Last Ten Fiscal Years Collections Percentage Collections of Current of Levy of Prior Total Delinquent Year's Taxes Collected Year's Taxes Collections Delinquent Taxes as Year During Fiscal During Fiscal During Fiscal Total as a%of Taxes a%of Collected Tax Levy(2) Period Period Period Collections Tax Levy Receivable Tax Levy 1985 $2,931,266 $2,657,094 90.65% $178,709 $2,835,803 96.74% $386,209 13.18% 1986 2,886,824 2,849,382 98.70% 32,739 2,882,121 99.84% 390,912 13.54% 1987 3,396,789 3,242,573 95.46% 68,651 3,311,224 97.48% 73,052 2.15% 1988 3,576,812 3,488,174 97.52% 13,090 3,501,264 97.89% 105,521 2.95% ►-' 1989 3,505,850 3,418,111 97.50% 55,502 3,473,613 99.08% 84,948 2.42% 0 N 1990 4,092,978 3,857,576 94.25% 12,241 3,869,817 94.55% 221,097 5.40% 1991 4,670,606 4,478,115 95.88% 79,443 4,557,558 97.58% 249,882 5.35% 1992 5,072,385 4,818,439 94.99% 6,898 4,825,337 95.13% 351,199 6.92°x6 1993 5,491,707 5,204,161 94.76% (121,158) 5,083,003 92.56% 189,400 3.45% I 1994 $5,857,342 $5,634,255 96.19% ($176,148) $5,458,107 93.18% $246,311 4.21% (1) Funds included in this table are the General Fund, Certificates of Indebtedness, Park Bonds, H.R.A., and E.D.A.. (2) Includes property taxes only; lodging tax and tax increments are excluded. City of Brooklyn Center TABLE 4 ASSESSED VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY(1) Last Ten Fiscal Years 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994(4) Population 30,630 30,267 29,759 29,420 28,578 28,810 28,887 28,558 28,533 28,533 Real Property Assessed value(2): Tax Tax(3) Tax Tax Tax Tax City: Capacity Capacity Capacity Capacity Capacity Capacity Residential $81,072,128 $90,912,548 $91,929,246 $90,162,927 $11,834,805 $10,133,274 $9,730,898 $9,193,012 $9,077,238 $9,110,096 Non-residential 126,444,994 125,109,658 139,433,999 154,031,355 19,707,624 16,185,832 16,305,868 16,013,701 14,654,123 13,665,143 Area-wide allocation (2,134,213) (2,097,533) (1,345,864) (8,148,681) (977,841) (1,365,235) (1,384,936) (1,550,097) (1,533,767) (954,616) 205,382,909 213,924,673 230,017,381 236,045,601 30,564,588 24,953,871 24,651,830 23,656,616 22,197,594 21,820,623 Less Tax Increment District 742,474 4,057,611 5,437,588 9,784,473 2,097,505 1,540,5t8 1,315,724 1,374,157 1,184,328 1,165,933 Total assessed value 204,640,435 209,867,062 224,579,793 226,261,128 28,467,083 23,413,353 23,336,106 22,282,459 21,013,266 20,654,690 Estimated Market Value 788,107,800 813,377,800 654,846,550 910,336,300 950,463,900 1,000,269,000 1,016,754,000 1,015,968,800 978,404,100 959,668, CD W I Personal Property Assessed value 4,276,221 4,291,916 4,296,001 4,510,313 190,299 530,526 539,121 543,237 549,751 622,500 Estimated market value 9,944,700 9,981,200 9,990,700 10,489,100 3,627,500 10610,520 10,564,700 11,349,900 11,951,100 _13,532,600 Total Taxable Property Assessed value $208,916,656 $214,158,978 $228,875,794 $230,771,441 $28,657,382 $23,943,879 $23,875,227 $22,825,696 $21,563,017 $21,277,190 Estimated market value $798,052,500 $823,359,000 $864,837,250 $920,825,400 $954,091,400 $1,010,879,520 $1,027,318,700 $1,012,179,300 $990,355,200 $973,201,300 I Assessed Value as a percent of Estimated Market Value 26.18% 26.01% 26.46% 25.06% 3.00% 2.37% 2.32% 2.2696 2.18% 2.19% Per Capita Valuations Assessed Value $6,821 $7,076 $7,691 $7,844 $1,003 $831 $827 $799 $756 $746 Estimated Market Value $26,055 $27,203 $29,061 $31,299 $33,386 $35,088 $35,563 $35,443 $34,709 $34,108 (1)Source:City of Brooklyn Center Assessing Department (2) The Minnesota Legislature changed the property tax system for taxes payable in 1989. The tax base of property was changed from assessed values to tax capacity values. (3) The reduction in residential values is due to a change In the state mandated formula from gross tax capacity to net tax capacity. (4) The 1994 population estimate was not available. The 1993 population estimate was used. City of Brooklyn Center TABLE 5 DIRECT AND OVERLAPPING TAX RATES AND TAX LEVIES(1) Last Ten Fiscal Years TAX RATES IN MILLS(2) Hennepin School Districts County& Total City. School. and County Year Vo-Tech No. 286 No. 279 No. 281 No. 11 Special No.286 No. 279 No. 281 No. 11 Collectible City(3) School Earl Brown Osseo Robbinsdale Anoka Districts Earl Brown _ Osseo Robbinsdale Anoka 1985 16.506 1.490 49.332 51.199 56.100 52.830 34.443 101.771 103.638 108.539 103.779 1986 17.183 1.535 52.545 54.345 59.450 55.740 35.566 106.829 108.629 113.734 108.489 1987 18.167 1.421 49.640 55.783 56.932 54.926 35.315 104.543 110.686 111.835 108.408 1988 19.237 1.493 59.372 61.859 58.433 62.181 38.405 118.507 120.994 117.568 119.823 TAX RATES IN TAX CAPACITY RATES(2) 1989 14.260 1.223 43.440 54.465 49.189 51.384 32.898 91.821 102.846 97.570 98.542 1990 17.479 1.103 42.099 57.847 54.516 47.893 33.547 94.228 109.976 106.645 98.919 1991 19.208 1.046 46.207 58.643 55.540 51.779 37.479 103.940 116.376 113.273 108.466 1992 20.922 0.513 54.696 65.766 58.723 56.525 40.888 117.019 128.089 121.046 118.335 ' 1993 23.969 1.095 67.008 64.948 61.807 63.717 42.457 134.529 132.469 129.328 130.143 0 1994 27.030 0.809 56.614 66.786 64.401 57.161 44.248 128.701 138.873 136.488 128.439 .A ' TAX LEVIES IN DOLLAR School Districts Hennepin County& Total City, Year Vo-Tech No. 286 No. 279 No. 281 No. 11 Special Schools, Collectible City(3) School Earl Brown Osseo Robbinsdale Anoka Districts and County 1985 $2,931,266 $310,394 $3,442,445 $3,014,744 $3,187,821 $1,286,533 $7,207,150 $21,380,353 1986 2,886,824 327,794 3,776,253 3,194,101 3,476,104 1,329,107 7,593,315 22,583,498 1987 3,396,789 293,194 3,900,388 3,409,323 3,726,934 1,327,348 8,088,560 24,142,536 1988 3,576,812 307,506 4,602,806 3,782,157 3,875,906 1,537,601 8,862,771 26,545,559 1989 3,505,850 293,205 4,059,518 3,770,603 -3,791,546 2,179,665 8,776,213 26,376,600 1990 4,092,978 244,258 3,718,102 3,171,054 4,028,724 1,099,641 8,052,590 24,407,347 1991 4,670,606 234,927 4,169,240 3,266,615 4,365,729 1,207,395 8,992,605 26,907,117 6 3 516 409 4 444 416 1 293 144 8,344,678 27,390,837 123 029 4 596 77 , 1992 5,072,385 , 1993 5,491,707 218,460 5,173,925 3,289,896 4,842,750 1,354,534 8,877,060 29,248,332 1994 $5,857,342 $166,681 $4,175,027 $3,472,013 $4,526,288 $1,287,264 $9,384,582 $28,869,197 (1) Sources: City of Brooklyn Center Assessing Department and Hennepin County Department of Property Tax&Public Records. (2) The tax base of property was changed from assessed values to tax capacity values by the Minnesota Legislature in 1989. (3) Includes tax levy for the Housing and Redevelopment Authority of Brooklyn Center. City of Brooklyn Center TABLE 6 SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS Last Ten Fiscal Years Percent Current Collections Total Special Percent Collection Collections Year Assessment of of Prior Total to Current Collected Billings Amount Billings Years Collections Levy 1985 $715,185 $698,756 97.70% $84,781 $783,537 109.56% 1986 631,296 631,165 99.98% 11,953 643,118 101.87% 1987 572,851 552,168 96.39% 3,139 555,307 96.94% 0 1988 556,028 526,594 94.71% 2,723 529,317 95.20% 1989 562,484 545,242 96.93% 59,944 605,186 107.59% 1990 504,682 476,874 94.49% 14,327 491,201 97.33% 1991 612,744 595,362 97.16% 23,135 618,497 100.94% 1992 558,265 533,439 95.55% 13,801 547,240 98.03% 1993 488,163 469,814 96.24% 21,188 491,002 100.58% 1994 $466,784 $444,670 95.26% $7,592 $452,262 96.89% City of Brooklyn Center TABLE 7 RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET DEBT PER CAPITA Last Ten Fiscal Years Less: Ratio of Net Net Gross Amounts Net Bonded Debt Bonded Fiscal Estimated Assessed Bonded in Debt Bonded to Assessed Debt Per Year Population Value Debt (1) Service Fund Debt Values Capita 1985 30,630 $208,916,656 $2,290,000 $846,014 $1,443,986 0.69% 47.14 1986 30,267 214,158,978 2,020,000 945,736 1,074,264 0.50% 35.49 1987 29,759 228,875,794 1,740,000 683,294 1,056,706 0.46% 35.51 1988 29,420 230,771,441 1,440,000 751,408 688,592 0.30% 23.41 Less: Ratio of Net Net Tax Gross Amounts Net Bonded Debt to Bonded Fiscal Estimated Capacity Bonded in Debt Bonded Tax Capacity Debt Per Year Population Value Debt (1) Service Fund Debt Value Capita 1989 28,578 28,657,382 1,130,000 274,843 855,157 2.98% 29.92 1990 28,810 23,943,879 950,000 448,846 501,154 2.09% 17.40 1991 28,887 23,875,227 610,000 486,205 123,795 0.52% 4.29 1992 28,558 22,825,696 310,000 504,146 (194,146) -0.85% (6.79) 1993 28,533 21,563,017 - - - 0.00% - 1994 (2) 28,533 $21,277,190 $0 $0 $0 0.00% $0 (1) Includes only bonded debt supported by property taxes. (2) 1993 population estimate. City of Brooklyn Center Table 8 COMPUTATION OF LEGAL DEBT MARGIN December 31, 1994 Market Value $973,201,300 Debt limit, 2% of market value 19,464,026 Total bonded debt 19,530,000 Deductions (See Note 5): A. Bonds: 1. Special Assessment Bonds 1,010,000 2. State Aid Street Bonds 2,605,000 3. Tax Increment Bonds 14,085,000 4. Utility Revenue Bonds 1,830,000 Total Deductions 19,530,000 Total Debt Applicable to Debt Limit 0 Legal Debt Margin, December 31, 1994 $19,464,026 - 107 - City of Brooklyn Center TABLE 9 COMPUTATION OF DIRECT AND OVERLAPPING DEBT December 31, 1994 City's Share Governmental Unit Gross Debt Sinking Funds Net Debt Percent Amount Direct Debt: City of Brooklyn Center (1) $0 $0 $0 100.0% $0 Overlapping Debt: School Districts: No. 281 Robbinsdale 0 0 0 10.1% 0 No. 11 Anoka 120,142,792 38,636,744 81,506,048 5.9% 4,808,857 No. 279 Osseo 172,820,000 51,445,437 121,374,563 6.9% 8,374,845 No. 286 Earl Brown 4,875,000 0 4,875,000 100.0% 4,875,000 Metropolitan Transit 1,400,000 593,000 807,000 1.1% 8,877 Metropolitan Council (2) 87,860,000 41,638,716 46,221,284 1.0% 462,213 C) Hennepin County 67,780,000 5,565,489 62,214,511 2.1% 1,306,505 °o Hennepin County Park Reserve District 16,875,000 1,459,316 15,415,684 2.9% 447,055 Total Overlaaaina Debt 471,752,792 139,338,702 332,414,090 20,283,351 Total Direct and Overlapping Debt $471,752,792 $139,338,702 $332,414,090 $20,283,351 (1) Includes only general obligation debt which is being repaid through property taxes. (2) The Metropolitan Council also has outstanding $291,645,000 of general obligation sanitary sewer bonds and loans which are supported by system revenues. Direct Overlapping Comparative Net Debt Ratios Chameable to City Total Debt Debt Debt to tax capacity value $21,277,190 95.33% 0.00% 95.33% Debt to market value $973,201,300 2.08% 0.00% 2.08% Per capita debt, population 28,533 $710.87 $0.00 $710.87 TABLE 10 City of Brooklyn Center RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last Ten Fiscal Years Debt Service Total (1) Total (2) as a Percent Debt General of General Year Principal Interest Service Expenditures Expenditures 1985 $255,000 $251,095 $506,095 $6,828,073 7.41% 1986 275,000 507,558 782,558 7,154,524 10.94% 1987(3) 2,475,000 930,252 3,405,252 7,649,436 44.52% 1988 640,000 682,561 1,322,561 8,502,109 , 15.56% 1989 635,000 626,068 1,261,068 9,062,571 13.92% 1990 530,000 585,992 1,115,992 9,434,517 11.83% 1991 940,000 746,401 1,686,401 9,935,441 16.97% 1992(4) 1,880,000 1,195,204 3,075,204 9,690,274 31.73% 1993 1,710,000 1,186,585 2,896,585 9,707,525 29.84% 1994 $780,000 $1,080,555 $1,860,555 $9,942,058 18.71% (1) For years 1984 through 1986, General Obligation Bonds and G.0. Tax Increment Bonds are included. From 1987 onward, Improvement Bonds, formerly Special Assessment Bonds, are also included. From 1991 onward, Certificates of Indebtedness are included. 2 The fund included in the expenditures column is the General Fund. (3) Amounts for 1987 are higher because of the issuance of Refunding Bonds of 1987 and the defeasance of Improvement Bonds of 1982. (4) Amounts for 1992 are higher because Tax Increment Bonds of 1983 were called for payment prior to maturity. 109 - City of Brooklyn Center TABLE 11 SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Years Ratio of Net Non- Net Revenue Operating Operating Gross Revenue to Debt Year Revenue Revenue Revenue Expenses(1) Available Principal Interest Total Service Water Utility Fund 1985 $546,817 $512,538 $1,059,355 $478,958 $580,397 $45,000 $14,040 $59,040 9.831 :1 1986 473,279 488,834 962,113 506,466 455,647 45,000 12,399 57,399 7.938 :1 1987 556,222 412,653 968,875 489,374 479,501 45,000 10,786 55,786 8.595 :1 1988 694,654 375,061 1,069,715 695,395 374,320 45,000 8,889 53,889 6.946 :1 1989 687,982 425,030 1,113,012 665,629 447,383 45,000 7,180 52,180 8.574 :1 1990 696,147 440,644 1,136,791 604,497 532,294 45,000 5,425 50,425 10.556 :1 1991 703,422 390,421 1,093,843 697,108 396,735 45,000 3,695 48,695 8.147 :1 ° 1992 896,857 316,551 1,213,408 762,405 451,003 45,000 1,940 46,940 9.608 :1 1993 848,134 311,781 1,159,915 659,099 500,816 0 0 0 N/A 1994 $1,053,689 $284,169 $1,337,858 $720,973 $616,885 $0 $0 $0 N/A Storm Drainage Fund (2) 1991 $374,040 $2,628 $376,668 $164,767 $211,901 $0 $0 $0 N/A 1992 494,456 14,030 508,486 207,427 301,059 0 0 0 N/A 1993 639,837 28,138 667,975 160,044 507,931 0 0 0 N/A 1994 $685,011 $39,930 $724,941 $211,425 $513,516 $0 $30,208 $30,208 17.00 :1 (1) Excludes depreciation and interest on bonds. (2) The Storm Drainage Fund was established in 1991. City of Brooklyn Center TABLE 12 PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS Last Ten Fiscal Years .Commercial Residential Construction (1) Construction (1) Property Value (2) Bank Year Value Units Value Commercial Residential Non-Taxable Deposits(3) 1985 $29,553,108 14 $827,700 $201,274,889 $586,929,400 $62,287,088 N/A 1986 14,689,661 157 9,737,806 199,882,500 613,694,000 64,906,838 N/A 1987 7,220,527 9 885,202 246,784,100 608,890,900 92,384,868 N/A 1988 5,084,601 66 3,073,500 286,096,300 634,230,700 89,745,168 N/A 1989 7,288,205 4 278,138 321,452,800 678,898,700 83,719,768 $219,077,986 1990 5,750,567 1 65,249 333,967,220 676,912,300 83,719,768 202,261,488 1991 4,719,147 7 450,745 339,358,500 677,299,800 87,479,168 201,944,156 1992 5,547,668 14 948,810 344,860,700 667,318,600 107,747,100 199,800,971 1993 7,598,108 7 505,000 322,295,300 668,059,900 108,955,700 200,539,494 1994 $5,504,477 9 $587,000 $301,702,300 $671,499,000 $109,600,200 $197,886,000 (1) Construction values were supplied by the City of Brooklyn Center Community Development Department. (2) Estimated market values were supplied by the City of Brooklyn Center Assessing Department. (3) Bank deposits were supplied by the banks. City of Brooklyn Center TABLE 13 PRINCIPAL TAXPAYERS December 31, 1994 Percentag 1994 of Total Market Market Taxpayers Type of Business Valuation (1) Value 1 S C Ltd Partners Brookdale Shopping Center $58,908,800 6.05% Prudential Insurance Co. Shopping Center/Office Buildings 15,635,700 1.61% Ryan Construction Office Buildings 15,206,300 1.56% i Dayton-Hudson Corp. Department Stores 13,340,900 1.37% - i First Industrial Realty Trust Warehouse/Office Buildings 9,105,700 0.94% Sears Roebeck and Co. Department Store 8,825,900 0.91% Norman Chazin Apartment Buildings 8,219,500 0.84% i Lutheran Brotherhood Office/Warehouse 6,704,500 0.69% NW Raquet Clubs Health Club/Fitness .6,662,500 0.68% Carson Pirie Scott Department Store 6,232,800 0.64% h i Total Market Value $148,842,600 15.29% TOTAL CITY MARKET VALUE $973,201,300 I (1) Market values were supplied by the City of Brooklyn Center Assessing Department. i a I - 112 - City of Brooklyn Center Table 14 SCHEDULE OF INSURANCE COVERAGE (Continued next page) Effective January 1, 1995 Policy Period Type of Coverage and Details From To Liability Limits I. Statutory Liability to Employees a. Workers'Compensation 01-01-95 01-01-96 Statutory (participant in the League of Minnesota Cities Insurance Trust Self- Insured Workers'Compensation Program) ll. Liability to the Public a. Comprehensive general liability include the following additional coverages: (a) All employees as additional insureds (b) Personal injury coverage to include false arrest,libel,slander,wrongful entry or eviction or invasion of right of privacy. (c) Broad contractual liability (d) Products liability (e) Public Officials'liability (1) Bodily injury 01-01-95 01-01-96 $600,000 combined single limit (2) Property damage 01-01-95 01-01-96 $600,000 combined single limit (3) Personal injury 01-01-95 01-01-96 $600,000 combined single limit b. Automobile liability, comprehensive 01-01-95 01-01-96 (1) Bodily injury $600,000 occurrence (2) Property damage $600,000 occurrence (3) Uninsured motorist $600,000 occurrence C. Liquor stores'dram shop 01-01-95 01-01-96 $1,000,000 each common cause d. Golf Course and Central Park 04-01-95 10-31-95 $1,000,000 each common liquor liability cause e. Personal accident,Council& 01-01-95 01-01-96 $100,000 accidental death Commissions $400tweek short term disability $1,000 Medical f. Personal accident,Volunteers 01-01-95 01-01-96 $100,000 accidental death $4001week short term disability $1,000 Medical 113 - City of Brooklyn Center Table 14 SCHEDULE OF INSURANCE COVERAGE (Continued from prior page) Effective January 1, 1995 Buildings and Policy Period Structures Content: (Replacement (Replacement Type of Coverage and Details From To Cost) Cost) III. Insurance on City Property 01-01-95 01-01-96 a. Public and institutional property,all risk, blanket $31,669,900; $1,000 deductible replacement value on buildings. (1) Civic Center $7,869,600 $1,047,000 (2) East Fire Station $676,700 $149,000 (3) Municipal Service Garage $1,452,000 $536,000 (4) Elevated Water Towers-3 locations $3,628,500 $0 (5) Park Shelter Buildings-17 locations $1,522,000 $55,000 (6) Pump Houses-10 locations $940,000 $110,000 (7) Lift Stations-10 locations $1,093,500 $71,000 (8) Meter Station $17,000 $0 (9) Storage Building $418,500 $0 (10)Outdoor lighting systems-7 locations $316,000 $0 (11)Liquor Store and Fire Station $560,700 $307,800 (12)Humboldt Liquor Store $247,600 $160,000 (13)Leased Liquor Store $49,500 $160,000 (15)Pedestrian Bridge-2locations $1,120,500 $0 (16)Picnic Shelter $57,000 $0 (17)Earle Brown Heritage Center $7,256,500 $1,421,000 (18)Centerbrook Golf Course Club House $328,600 $22,000 (19)Centerbrook Golf Course-Garage $35,900 $2,000 (20)Lions Park Concession Stand $36,000 $3,000 Liability Limits b. Boiler and machinery 01-01-95 01-01-96 $3,000,000 per accident C. Automotive physical damage 01-01-95 01-01-96 (1) Comprehensive ACV-$1,000 deductible (2) Collision ACV-$1,000 deductible IV. Criminal Acts a. Faithful performance blanket position $100,000 per loss b. Money and securities(broad form) Various C. Depositor's forgery $100,000 114 - City of Brooklyn Center TABLE 15 DEMOGRAPHIC STATISTICS Last Ten Fiscal Years School Enrollments(3) Mpls-St.Paul No. 286 Fiscal Unemployment C.P.I. No. 11 No. 279 No. 281 Earle Year Population Rate (1) % (2) Anoka Osseo Robbinsdale Brown 1985 30,630 4.5% N/A 1,032 2,003 567 1,326 1986 30,267 3.9% 1.3% 1,011 1,838 555 1,361 1987 29,759 4.1% 3.0% 989 1,674 570 1,376 1988 29,420 3.5% 5.0% 989 1,674 563 1,456 1989 28,578 3.5% 4.1% 671 1,674 563 1,652 1990 28,810 3.2% 4.1% 642 1,616 540 1,747 1991 28,887 4.6% 2.3% 807 1,680 521 1,327 1992 28,558 4.4% 1.4% 671 1,178 526 1,709 1993 28,533 4.3% 2.7% 691 1,106 540 1,685 1994 (4) 28,533 2.6% 2.7% 661 1,071 577 1,681 (1) Minnesota Department of Jobs and Training, Research and Statistics Dept. Twin Cities metro area average for year. (2) U.S. Department of Labor, Bureau of Labor Statistics. All urban consumers, (CPI-U) 1982-84, second half change from prior year. (3) School enrollment data was supplied by the schools. (4) 1993 population estimate. 115 - TABLE 16 City of Brooklyn Center (Continued MISCELLANEOUS STATISTICAL FACTS next page) December 31, 1994 Date of Incorporation February 14, 1911 Date of Adoption of City Charter November 8, 1966 Date City Charter Effective December 8, 1966 Form of Government Council-Manager Fiscal Year Begins January 1 Area of City 8 1/2 square miles Miles of Streets: City 105.69 County 6.49 State 10.79 Miles of Storm Sewers 41.13 Number of Street Lights: Owned by N.S.P 991 Owned by City 73 Building Permits: Number Estimated Issued Cost 1994 607 $13,418,453 1993 520 11,437,250 1992 573 14,286,465 1991 466 8,800,980 1990 504 8,035,605 1989 526 19,217,696 1988 554 10,846,987 1987 573 10,421,724 1986 604 28,594,810 1985 521 32,328,938 City Employees as of December 31, 1994 Regular full-time 141 Temporary or part-time 209 Total 350 Fire Protection: Number of Stations 2 Number of Full-time Employees 1 Number of Volunteer Firefighters 29 Police Protection: Number of Stations 1 Number of Full-time Employees 52 Number of Part-time Employees 16 116 - City of Brooklyn Center TABLE 16 MISCELLANEOUS STATISTICAL FACTS (Continued from December 31, 1994 prior page) Parks and Recreation: Park property totals 522 acres developed to serve a wide variety of recreational interests. Area include playlots, playgrounds, playfields, trails, nature areas and an arboretum. Playgrounds 17 Park shelters 17 Ice skating rinks 7 Hockey rinks 5 Softball diamonds 26 Baseball diamonds 6 Tennis courts 18 Basketball courts 15 Municipal Water Plant: Number of connections 8,880 Average daily consumption in gallons 3,450,712 Peak daily consumption in gallons 7,757,000 Plant capacity-gallons per day 17,652,000- Miles of water mains 114.582 Number of fire hydrants 837 Number of wells 9 Number of elevated reservoirs 3 Storage capacity in gallons 3,000,000 Water rate per thousand gallons $0.86 Municipal Sewer Plant: Number of connections 8,797 Miles of sanitary sewer 104.98 Daily disposal capacity in gallons 10,938,240 Number of lift stations 10 Residential rate per quarter $42.50 Municipal Liquor Stores (Off-sale): Number of owned stores 2 Number of leased stores 1 1994 sales $2,698,373 Elections: Last General Election- November 8, 1994 Registered voters 17,593 Votes cast 10,751 Percentage of registered voters voting 61% Last Municipal Election- 1994 Registered voters 17,593 Votes cast 10,751 Percentage of registered voters voting 61% - 117 - CITY OF BROOKLYN CENTER Schedule of Federal Financial Assistance for the Year Ended December 31, 1994 and Independent Auditors' Reports CITY OF BROOKLYN CENTER, MINNESOTA TABLE OF CONTENTS Page INDEPENDENT AUDITORS' REPORT ON THE SCHEDULE OF 1 FEDERAL FINANCIAL ASSISTANCE SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 2 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS 3 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS 5 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS 6 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE BASED ON THE AUDIT OF THE FINANCIAL STATEMENTS 8 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS 10 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 13 Deloifte & ToucheLLP /� 400 One Financial Plaza Telephone:(612)397-4000 120 South Sixth Street Facsimile: (612)397-4450 Minneapolis, Minnesota 55402-1844 INDEPENDENT AUDITORS' REPORT ON THE SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE Honorable Mayor and Members of the City Council City of Brooklyn Center,Minnesota We have audited the general purpose financial statements of the City of Brooklyn Center,Minnesota(the City) as of and for the year ended December 31, 1994 and have issued our report thereon dated April 17, 1995. These general purpose financial statements are the responsibility of the management of the City. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management,as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the City, taken as a whole. The accompanying Schedule of Federal Financial Assistance, which is also the responsibility of the management of the City, is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. This report is intended for the information of the mayor and city council members, management,and others within the City f Brooklyn yn Center,Minnesota. However,this report is a matter of P ublic record and its distribution is not limited. I ` LL? April 17, 1995 Deloittebuche Tohmatsu International CITY OF BROOKLYN CENTER, MINNESOTA SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED DECEMBER 31, 1994 Federal Federal Grantor Pass-Through CFDA Grantor/Program Title Number Expenditures U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT- Passed through Hennepin County- Community Development Block Grant 14.218 $ 105,661 FEDERAL EMERGENCY MANAGEMENT AGENCY- Passed through the Hennepin County Division of Emergency Preparedness: Civil Defense 83.503 6,000 Civil Defense 83.513 2,549 U.S. DEPARTMENT OF JUSTICE- Passed through the Minnesota Department of Public Safety- Drug Control and System Improvement- Formula Grant 16.579 1,000 TOTAL FEDERAL FINANCIAL ASSISTANCE $ 115.210 2 Deloifte & Touche LLP �� 400 One Financial Plaza Telephone:(612)397-4000 120 South Sixth Street Facsimile: (612)397-4450 Minneapolis, Minnesota 55402-1844 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS Honorable Mayor and Members of the City Council Y y it City of Brooklyn Center,Minnesota We have audited the general purpose financial statements of the City of Brooklyn Center, Minnesota(the City)as of December 31, 1994 and for the year then ended and have issued our report thereon dated April 17, 1995. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated by the Legal Compliance Task Force pursuant to Minnesota Statute 6.65. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the City is the responsibility of the management of the City. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws,regulations,contracts, and grants. However,the objective of our audit was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests indicate that, with respect to the items tested, the City complied,in all material respects,with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City had not complied,in all material respects,with those provisions. The Minnesota Legal Compliance Audit Guide for Local Government covers five main categories of compliance to be tested for the City: contracting and bidding, deposits and investments,conflicts of interest,public indebtedness,and claims and disbursements. Our study included all of the listed categories. The results of our tests indicate that, with respect to items tested,the City complied, in all material respects, with the provisions referred to above. With respect to items not tested,nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with such legal provisions. However,the results of our procedures disclosed an immaterial instance of noncompliance which is described in the accompanying Schedule of Findings and Questioned Costs. Deloittebuche Tohmatsu International 3 This report is intended for the information of the mayor and city council members,management,and others within the City of Brooklyn Center, Minnesota. However, this report is a matter of public record and its distribution is not limited. �L� u-P April 17, 1995 4 Deloifte & ToucheLLP �\ 400 One Financial Plaza Telephone:(612)397-4000 120 South Sixth Street Facsimile: (612)397-4450 Minneapolis, Minnesota 55402-1844 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS Honorable Mayor and Members of the City Council City of Brooklyn Center,Minnesota We have audited the general purpose financial statements of the City of Brooklyn Center,Minnesota(the City) as of and for the year ended December 31, 1994 and have issued our report thereon dated April 17, 1995. We have also applied procedures to test the City's compliance with general requirements applicable to federal financial assistance programs and have issued our report thereon dated April 17, 1995. In connection with our audit of the 1994 general purpose financial statements of the City, our consideration of the City's control structure used to administer federal financial assistance programs,and our assessment of control risk as required by Office of Management and Budget(OMB) Circular A-128, Audits of State and Local Governments, we selected certain transactions applicable to certain nonmajor federal financial assistance programs for the year ended December 31, 1994. As required by OMB Circular A-128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City's compliance with these requirements. Accordingly, we do not express such an opinion. With respect to the items tested,the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City had not complied, in all material respects,with those requirements. This report is intended for the information of the mayor and city council members,management,and others within the City of Brooklyn Center, Minnesota. However,this report is a matter of public record and its distribution is not limited. �taL,J-k _ �,-- t April 17, 1995 DeloitteTouche Tohmatsu International 5 I Deloifte & Touche LLP 0400 One Financial Plaza Telephone: (612)397-4000 120 South Sixth Street Facsimile: (612)397-4450 Minneapolis, Minnesota 55402-1844 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS Honorable Mayor and Members of the City Council City of Brooklyn Center,Minnesota We have audited the general purpose financial statements of the City of Brooklyn Center, Minnesota(the City)as of and for the year ended December 31, 1994 and have issued our report thereon dated April 17, 1995. We have applied procedures to test the City's compliance with the following requirements applicable to its federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance,for the year ended December 31, 1994: • Political activity(Hatch Act and Intergovernmental Personnel Act of 1970,as amended) • Civil rights • Relocation assistance and real property acquisition • Allowable costs/cost principles • Drug-free Workplace Act • Administrative requirements The requirements of the Davis-Bacon Act,cash management (reimbursement basis only), and federal financial reports are not applicable to the federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance. Our procedures were limited to the applicable procedures described in Office of Management and Budget's Compliance Supplement for Single Audits of State and Local Governments. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City's compliance with the requirements listed in the preceding paragraph. Accordingly,we do not express such an opinion. With respect to the items tested,the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested,nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with those requirements. DeloitteTouche Tohmatsu International 6 This report is intended for the information of the mayor and city council members, management,and others within the City of Brooklyn Center,Minnesota. However, this report is a matter of public record and its distribution is not limited. Z&t- April 17, 1995 7 Deloifte & TouchB LLP N 400 One Financial Plaza Telephone:(612)397-4000 120 South Sixth Street Facsimile: (612)397-4450 Minneapolis, Minnesota 55402-1844 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE BASED ON THE AUDIT OF THE FINANCIAL STATEMENTS Honorable Mayor and Members of the City Council City of Brooklyn Center,Minnesota We have audited the general purpose financial statements of the City of Brooklyn Center,Minnesota (the City)as of and for the year ended December 31, 1994 and have issued our report thereon dated April 17, 1995. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we lan and e p perform the audit to obtain reasonable assurance about whether the eneral u g purpose financial statements are free of material misstatement. In planning and performing our audit of the general purpose financial statements of the City for the year ended December 31, 1994,we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. The management of the g City is responsible for establishing and maintaining the internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute,assurance that assets are safeguarded against loss from unauthorized use or disposition and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure,errors or irregularities may nevertheless occur and not be detected. Also,projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: cash receipts,cash disbursements, receivables,payables, payroll, general ledger, and controls used in administering compliance with laws and regulations. For all of the internal control structure categories Q b ies listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation,and we assessed P , control risk. Deloittebuche Tohmatsu International 8 Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation in the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. However, we noted certain matters involving the internal control structure and its operation that we have reported to the management of the City in a separate letter dated April 17, 1995. P P This report is intended for the information of the mayor and city council members,management,and others within the City of Brooklyn Center,Minnesota. However, this report is a matter of public record and its distribution is not limited. z� i -Uc April 17, 1995 9 Deloifte & buche LLP /\ 400 One Financial Plaza Telephone:(612)397-4000 120 South Sixth Street Facsimile: (612)397-4450 Minneapolis, Minnesota 55402-1844 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Honorable Mayor and Members of the City Council City of Brooklyn Center,Minnesota We have audited the general purpose financial statements of the City of Brooklyn Center,Minnesota(the City)as of and for the year ended December 31, 1994 and have issued our report thereon dated April 17, 1995. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget(OMB) Circular A-128,Audits of State and Local Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the City complied with laws and regulations,noncompliance with which would be material to a federal financial assistance program. In planning and performing our audit for the year ended December 31, 1994, we considered the City's internal control structure and assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the City's general purpose financial statements and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated April 17, 1995. The management of the City is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles,and that federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. DeloitteTouche Tohmatsu International 10 For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: Accounting Applications: • Cash receipts • Cash disbursements • Receivables • Payables • Payroll • General ledger General Requirements • Political activity(Hatch Act and Intergovernmental Personnel Act of 1970, as amended) • Civil rights • Relocation assistance and real property acquisition • Allowable costs/cost principles • Drug-free Workplace Act • Administrative requirements Specific Requirements: • Types of services allowed or unallowed Claims for Reimbursements For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended December 31, 1994,the City had no major federal financial assistance programs and expended 92% of its total federal financial assistance under the Community Development Block Grant Program. We performed tests of controls,as required by OMB Circular A-128,to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with specific requirements,general requirements,and requirements governing claims for reimbursements that are applicable to the aforementioned nonmajor federal financial assistance program. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies. Accordingly,we do not express such an opinion. Our consideration of the internal control structure policies and procedures used in administering federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure policies and 11 procedures used in administering federal financial assistance programs and its operation that we consider to be material weaknesses as defined above. However, we noted matters involving the internal control structure and its operation based on our audit of the general purpose financial statements, which we reported to management of the City in a separate letter dated April 17, 1995. This report is intended for the information of the mayor and city council members,management,and others within the City of Brooklyn Center, Minnesota. However, this report is a matter of public record and its distribution is not limited. �t 'eQJI-6L— Z��t9-u UP April 17, 1995 12 CITY OF BROOKLYN CENTER, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED DECEMBER 31, 1994 CURRENT-YEAR FINDINGS Federal Financial Assistance Program Findings: None. State of Minnesota Legal Compliance Findings: Cash Collateralization: Observation: Minnesota Statute 118.0 1, Subdivision 2 stipulates that the City's depository institution must collateralize deposits in excess of FDIC insurance coverage. Such collateral must have a fair market value of at least 110% of the amount of excess deposits if collateralized by qualified investments other than notes secured by first mortgages. On three of the twelve dates we selected for testing of the adequacy of collateral, we found collateral pledged by the City's depository institution to be less than 110% of the City's excess deposits. These deficiencies were caused by incorrect communications from the bank, which led to the bank having less actual collateral than what the City's records showed. This situation was corrected as soon as we brought it to the City's attention. Recommendation: We recommend the City closely monitor the adequacy of collateral on hand throughout the year, particularly when large deposits are made. PRIOR-YEAR FINDINGS Cash Collateralization: Finding repeated in the current year. i 13 cover BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION FINANCIAL STATEMENTS For the Calendar Year Ended DECEMBER 31, 1994 CITY OF BROOKLYN CENTER DEPARTMENT OF FINANCE i contents.txt BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION ANNUAL FINANCIAL REPORT For the Year Ended December 31, 1994 TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Treasurer's Letter 1 FINANCIAL SECTION Independent Auditors' Report 3 Special Fund: Statements of Net Assets Available for Benefits . . . . . . . . . . . . . Exhibit A 4 Statements of Changes in Net Assets Available for Benefits . . . . . . . Exhibit B 5 General Fund: Balance Sheets . . . . . . . . . . . . . . . . Exhibit C 6 Statements of Revenues, Expenditures and Changes in Fund Balance . . . Exhibit D 7 Notes to Financial Statements . . . . . . . . . . . . 8 Required Supplementary Information: PERS Analysis of Funding Progress . . . Schedule I 16 PERS Revenue By Source and Expenses By Type . . . . . . . . . . . . . . . Schedule II 17 Other Supplementary Information: Schedule of Pensions and Benefits. . . . . Schedule III 18 Special Fund - Investment Detail . . . . . . Schedule IV 19 51NGE 19" ED f m- BROOKLYN CENTER FIRE DEPARTMENT 6301 Shingle Creek Parkway Emergency Fire 911 Brooklyn Center, Minnesota 55430 Telephone - 569-3360 FAX - 561-0717 TO: Board of Directors, Fire Department Relief Association Members of the City Council City Manager SUBJECT: Fire Department Relief Association Financial Report DATE: June 12, 1995 The Annual Audited Financial Report of the Fire Department Relief Association, General and Special "Pension" Funds as of and for the year ended December 31, 1994 is submitted herewith. During 1993, the Wyatt Company, an actuarial firm, was directed to prepare an alternate benefit level analysis for the fund. Based on the analysis, the City Council approved amendments to the Bylaws of the Brooklyn Center Fire Department Relief Association which granted increased benefits within statutory limitations. The increased benefits are effective January 1, 1994, January 1, 1995, and January 1, 1996. For active members, monthly retirement benefits increased, lump sum benefits increased, and provision was made for members who become full-time employees of the City and members of PERA. Other benefits for active members remained the same. Deferred pensioners, retired pensioners, and survivors were given a 10% pension increase. The normal cost of providing benefits was projected to be $68,698 annually and the annual deposit required to retire the unfunded liability by the year 2000 was projected to be $26,241. Note 6 to the financial statements describes the current plan benefits. Adoption of this benefit plan created a pension benefit obligation of $2,894,711 as of January 1, 1994. However, the stepped fashion in which the benefits increased was expected to result in the obligation equaling $3,072,717 as of January 1, 1996. Our plan had reached the point of being fully funded as of December 31, 1992. Contributions and investment earnings during 1993 were sufficient to cover the most of the increased liability and leave the plan 98.4% 1 funded as of December 31, 1993. In 1994, the pension benefit obligation increased by $111,660 because of the additional year of service credited to plan members. There was an offsetting reduction in the pension benefit obligation of $213,356 due to the payment of lump sum distributions and the death of one beneficiary. The pension benefit obligation had a net reduction of$101,696. The plan was 96.2% funded as of December 31, 1994. See Schedule I for an analysis of funding progress. Real estate taxes in the amount of $36,092 were levied in 1993, to be collected in 1994, to finance the City's share of pension costs. The levy was computed as follows: Required pension contribution $ 94,939 Other costs, (salaries etc.) 11,153 Less State support (estimated) (70,000) Required property tax levy $ 36,092 During 1994, there were no additions to those volunteer fire fighters who were drawing a pension from the Fire Department Relief Association, and no members died, so the total remained at twenty five. These pensions ranged from $136 to $453 per month and totaled $70,884 for the year 1994. There were no additions to the surviving spouses, and one died, so the total was reduced to eight monthly spouse's pensions being paid. These pensions ranged from $139 to $326 per month and totaled $24,453 for the year 1994. No funeral benefits were paid. No disability benefits were paid. Three lump sum distributions were made to retiring fire fighters. These payments ranged from $49,336 to $80,500 and totaled $199,836 for the year 1994. Schedule III of this report is a listing of pensions and benefits paid in 1994. All surplus cash of the Special Fund is being invested promptly and in total is earning more than the 5% actuarial assumption. Respectfully submitted, Mark K. Skjolsvik Treasurer 2 Deloifte & ToucheLLP ®� 400 One Financial Plaza Telephone:(612)397-4000 120 South Sixth Street Facsimile: (612)397-4450 Minneapolis, Minnesota 55402-1844 INDEPENDENT AUDITORS' REPORT Board of Trustees City of Brooklyn Center Fire Department Relief Association We have audited the accompanying statements of net assets available for benefits of the Special Fund and the balance sheets of the General Fund of the City of Brooklyn Center Fire Department Relief Association(the Association) as of December 31, 1994 and 1993 and the related statements of changes in net assets available for benefits of the Special Fund and of revenues, expenditures, and changes in fund balance of the General Fund for the years then ended. These financial statements are the responsibility of the Association's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion,the financial statements referred to above present fairly, in all material respects,the financial position of the Special Fund and General Fund of the City of Brooklyn Center Fire Department Relief Association as of December 31, 1994 and 1993 and the results of its operations for the years then ended, in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedules of required supplementary information are presented for the purpose of additional analysis and are not a required part of the basic financial statements. These schedules are also the responsibility of the Association's management. Such schedules have been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, are fairly presented in all material respects in relation to the basic financial statements taken as a whole. May 15, 1995 DeloitteTouche Tohmatsu International sfassec? Exhibit A BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION SPECIAL FUND STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1994 and 1993 1994 1993 ASSETS Investments (Note 4): Time Deposits in Commercial Banks $38,263 $108,542 Money Market & Mutual Funds (Net of 877,044 1,532,816 Valuation Allowance of$109,712 in 1994 and $49,806 in 1993) United States Government Obligations 972,460 459,539 Corporate Bonds and Debentures 777,396 739,510 ---------------- ---------------- $2,665,163 $2,840,407 ---------------- ---------------- Receivables: Interest Receivable 15,786 12,597 Accounts Receivable 10,689 2,372 ---------------- ---------------- $26,475 $14,969 ---------------- ---------------- Cash $2,736 $679 ---------------- ---------------- Total Assets $2,694,374 $2,856,055 ---------------- ---------------- LIABILITIES Accounts Payable $500 $500 Pensions Payable 7,887 7,230 Accrued Wages Payable 250 250 ---------------- ---------------- Total Liabilities $8,637 $7,980 ---------------- ---------------- NET ASSETS AVAILABLE FOR BENEFITS $2,685,737 $2,848,075 See Notes to the Financial Statements 4 sfchange Exhibit B BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION SPECIAL FUND STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS FOR THE YEARS ENDED DECEMBER 31, 1994 and 1993 1994 1993 ADDITIONS Ad Valorem Taxes $36,092 $27,790 State of Minnesota: Fire Insurance Premium Tax 66,803 64,039 Investment Earnings: Interest and Dividends 203,478 201,846 Net gain/loss on Sale of Investments (100,715) (21,791) Provision for Loss on Investments (59,906) ------------- ------------- TOTAL ADDITIONS $145,752 $271,884 ------------- ------------- DEDUCTIONS Membership Benefits: Service Pensions $71,592 $63,398 Lump Sum Distributions 199,836 0 Spouses' and Children's Benefits 24,402 24,372 ------------- ------------- $295,830 $87,770 ------------- ------------- Administrative Expenses: Officer's Salaries $3,000 $3,000 Dues 750 669 Audit and Financial 6,394 9,757 Investment Management Fees 2,000 2,003 Office Supplies 116 145 ------------- ------------- $12,260 $15,574 ------------- ------------- TOTAL DEDUCTIONS $308,090 $103,344 ------------- ------------- NET IN REA E (DECREASE,) ($162,338) $168,540 NET A ET AVAIL ABI FOR BENEFITS: Beginning of year $2,848,075 $2,679,535 ------------- ------------- End of Year $2,685,737 $2,848,075 See Notes to the Financial Statements 5 gfbalsht Exhibit BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION GENERAL FUND BALANCE SHEETS DECEMBER 31, 1994 and 1993 12 ASSETS Investments (Note 4): Money Market Funds $2,539 $10,042 United States Government Obligations 13,263 ---------- ---------- $15,802 $10,042 Cash $20,379 $20,712 ---------- ---------- Total Assets $36,181 $30,754 LIABILITIES AND FUND BALANCE Fund Balance $36,181 $30,754 Total Fund Balance o a $36,181 $30,754 Total Liabilities & Fund Balance $36,181 $30,754 See Notes to the Financial Statements 6 gfchange Exhibit D BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION GENERAL FUND STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCE FOR THE YEARS ENDED DECEMBER 31, 1994 and 1993 1994 1993 REVENUES: Dance $9,833 $9,497 Softball Tournament 11,698 6,678 Interest and Dividends 499 399 Donations 141 512 Miscellaneous Revenue 80 478 TOTAL REVENUES 22,251 17,564 ---------- ---------- EXPENDITURE Purchase of Equipment 2,955 6,335 Banquets 7,128 7,784 Supplies 3,763 3,284 Donations and Memorials 1,642 1,351 Repairs and Maintenance 47 253 Miscellaneous 1,289 1,449 ---------- ---------- TOTAL EXPENDITURES 16,824 20,456 ---------- ---------- EXCESS OR (DEFECIENCY) OF REVENUES OVER EXPENDITURES 5,427 (2,892) FUND BALANCE - JANUARY 1 30,754 33,646 ---------- ---------- FUND BALANCE - DECEMBER 31 $36,181 $30,754 See Notes to the Financial Statements 7 i BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1994 1. Summary of Significant Accounting Policies A. Fund Accounting The resources of the Brooklyn Center Fire Department Relief Association (the Association) are accounted for in the following funds: Special Fund: Accounts for the accumulation of resources to be used for retirement, dependency and disability annuity payments. Resources include property taxes, the two percent insurance premium tax from the State of Minnesota, and earnings from investments. General Fund: Accounts for the resources other than those in the Special Fund, consisting of membership dues to be used for the good and benefit of the Association as determined by Association bylaws. B. Basis of Accounting i The accounting policies of the Association conform to generally accepted accounting principles. The accrual basis of accounting is used for the Special Fund; the modified accrual basis of accounting is used for the General Fund. C. Investments Securities of the federal government and its agencies and corporate bonds and debentures are carried at amortized cost. Other investments are carried at the lower of cost or market value. Dividends are recognized when received. Interest is recognized when earned. D. Reclassification Certain 1993 accounts have been reclassified to conform to the 1994 presentation. 2. Form of Organization The Association was incorporated on December 5, 1949. It operates under the provisions of Minnesota Statutes 69 and 424. It is governed by a board of nine members. Six of the board members are elected by the members of the Association for • two year terms. The Mayor, Finance Director and Fire Chief are ex-officio voting members of the board of trustees. 8 3. Financial Reporting Entity The Association has implemented the Governmental Accounting Standards Board pronouncements relating to financial reporting for the entity. For financial reporting purposes the Association's financial statements include all funds, departments, agencies, boards, commissions, and other organizations over which the Association's officials exercise oversight responsibility. 4. Deposits and Investments A. Deposits Minnesota Statutes 118.005 authorizes the Association to deposit cash and to invest in certificates of deposit in financial institutions designated by the governing body. At December 31, 1994, the Association had cash deposits totaling $63,551. Minnesota statutes require that all Association deposits be covered by deposit insurance, surety bond, or pledged collateral. Following is a summary of the combined deposits of the General & Special Funds covered by insurance or collateral at December 31, 1994. • Bank Carrying Balances Amount Covered Deposits Insured, or collateralized with securities held by the Association or its agent in the Association's name. $63,551 Collateralized with securities held by the pledging financial institution's trust department or agent in the Association's name. -------- Total covered deposits $63,551 Uncollateralized ------ -------- Total $63,551 $61,378 9 4. Deposits and Investments (continued) B. Investments Minnesota Statutes 69.775 and 11A.24 authorize and define the types of securities available to the Association for investment. The Association's investments are categorized below to give an indication of the level of risk assumed at year end. (A) securities that are insured or registered, or for which the securities are held by the Association or its agent in the Association's name; (B) securities that are uninsured and unregistered and are held by the counter party's trust department or agent in the Association's name; (C) securities that are uninsured and unregistered and are held by the counter party, or by its trust department or agent but not in the Association's name. Following is a summary of the carrying values of the Association's investments, categorized into the aforementioned levels of risk, along with the market values of the securities, at December 31, 1994. CATEGORY TOTAL • -------------------- CARRYING MARKET A B C VALUE VALUE Investments Govt Obligations $985,723 $985,723 $901,953 Corporate Bonds 777,396 777,396 750,567 ------------- ------- ------- ------------- -------------- $1,763,119 None None $1,763,119 $1,652,520 Money Market & Mutual Funds (lower of cost or market) 879,583 Cash & Time Deposits (Note 4-A) 61,378 Total Cash, Deposits & Investments $2,704,080 The Association's policy is to hold U.S. Government and U.S. Government guaranteed obligations to maturity. The Association held two investments (other than U.S. Government and U.S. Government guaranteed obligations) throughout the year and at December 31 which represent 5% or more of the net assets available for benefits. These are the Pilgrim Prime Rate Trust and the Keystone American Strategic Income Fund, which are included in the investment detail in Schedule IV. 10 5. Plan Description The Association is the administrator of a single employer public employee retirement system (PERS) established and administered under Minnesota statutes to provide pension benefits for volunteer fire fighters of the City of Brooklyn Center. At December 31, 1994 PERS membership consisted of: Retirees and beneficiaries currently receiving benefits. 33 Terminated employees entitled to benefits but not yet receiving them. 5 Active plan participation: Vested 16 Nonvested 16 Total 70 6. Retirement Benefit An actuarial study was completed during 1993 which developed a schedule of benefit increases which will take effect on January 1, 1994, January 1, 1995, and January 1, 1996. Benefits are less for those members retired prior to that date or for their spouses and children receiving benefits. A. Basic Service Pension for Retired Members Upon approval of an application therefor, a monthly service pension based on Table 1 below per month for each year of active service with the Fire Department shall be paid to each retired member during the remainder of his or her natural life; provided, however, that for purposes of computing such service pension, no retired member shall be given credit for more than 30 years of active service with the Fire Department. Table 1 PER YEAR OF SERVICE Effective Monthly Benefit Lump Sum Date of Retirement Level Level 1/1/94-12/31/94 $24.50 $3,500 1/1/95-12/31/95 $25.50 $3,750 1/1/96-12/31/96 $26.50 $4,000 B. Basic Service Pension for Previously Retired Member Effective January 1, 1994, the service pension for a previously retired member, or any benefits in pay status to a surviving spouse of a previously retired member before January 1, 1994, was be increased by ten percent (10%). 11 6. Retirement Benefit (continued) C. Basic Service Pension for Deferred Pensioner A member who is otherwise qualified for a service pension but who has not reached the age of 50 years may retire from the Fire Department without forfeiting the member's right to such pension. Upon approval of an application therefor, the deferred pensioner shall receive a pension based on Table 1 above multiplied by such person's years of active service with the Fire Department and further multiplied by the decimal equivalent of the applicable percentage determined from the following table: Table 2 Years of Applicable Service Percentage 10 60 11 64 12 68 13 72 14 76 15 80 16 84 17 88 18 92 19 96 20 and beyond 100 D. Permissible Forms of Benefit: Any retired member, deferred pensioner or early retired member may elect to receive any pension benefits provided in the following forms: 1. Straight Life Annuity 2. Lump Sum Distribution 3. Joint and 100% Survivor 4. Joint and 50% Survivor 12 6. Retirement Benefit (continued) E. Survivor's Benefit: Upon the death of a participant, an amount equal to the greater of (a) the basic monthly service pension which had accrued or (b) the amount shown in table 3 below, shall be paid to the surviving spouse. In lieu of such payments, a lump sum distribution is also available. Table 3 Effective Dates Survivors Monthly Benefit 1/1/94-12/31/94 $490 1/1/95-12/31/95 $510 1/1/96-12/31/96 $530 Children's Benefit: Upon the death of a participant who is survived by a spouse and children, an additional benefit equal to 25% of the surviving spouse's monthly benefit shall be paid for each surviving child under the age of 18, not to exceed 100% of the surviving spouse's benefit. No additional benefits shall be paid if a lump sum distribution is elected. F. Funeral Benefit: A funeral expense benefit of $2,500 will be paid upon the death of a participant, except in instances where benefits are in the form of a lump sum distribution. G. Disability Benefit: None, now covered through Fire Department Disability Insurance. 13 i 7. Funding Status and Progress The amount shown below as "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected benefit increases, estimated to be payable in the future as a result of employee service to date. The measure is the actuarial present value of credited projected benefits and is intended to help users assess PERS funding status on a going concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among PERS. The measure is independent of the actuarial funding method used to determine contributions to the PERS, discussed in note 8. below. An actuarial update of the pension benefit obligation from a base year valuation study is performed annually. The pension benefit obligation was updated as of January 1, 1995 from an actuarial valuation as of January 1, 1993. Significant actuarial assumptions used include (a) a rate of return on the investment of present and future assets of 5 percent per year compounded annually, and (b) no post retirement benefit increases. At January 1, 1995, the unfunded pension benefit obligation was as follows: Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $1,367,952 Current Employees: Employer-financed vested 1,242,271 Employer-financed nonvested 182,792 Total pension benefit obligation 2,793,015 Net assets available for benefits 2,685,737 (at carrying value, market equals $2,575,071) ------------- Unfunded pension benefit obligation $ 107,278 The pension benefit obligation increased by $111,660 because of the additional year of service credited to plan members. There was an offsetting reduction in the pension benefit obligation of $213,356 due to the payment of lump sum distributions and the death of one beneficia ry. P g. The pension benefit obligation had a net reduction of $101,696. 14 • 8. Contributions Required and Contributions Made PERS funding policy provides for periodic City and State contributions at actuarially determined rates that are sufficient ie t to accumulate sufficient assets to pay benefits when due. City and state contribution rates are determined using the entry age normal cost actuarial funding method. PERS also uses this method to amortize the unfunded liability by 1999. City and State contributions totaling $102,895 were made in accordance with actuarially determined contribution requirements determined through an actuarial valuation performed at January 1, 1993. These contributions are required to fund (a) $68,698 normal cost, (b) $26,241 amortization of the unfunded actuarial accrued liability, and (c) $11,153 administration cost. The State contribution was $3,197 less than budgeted and administrative expenses were $1,107 more than budgeted. Significant actuarial assumptions used to compute contribution requirements are the same as those used to compute the standardized measure of the pension obligation discussed in note 7. above. The computation of the pension contribution requirements for 1994 was based on the same actuarial assumptions, benefit provisions, actuarial funding method, and other significant factors used to determine pension contribution requirements in previous years. 9. Related Party Investments During 1994 and as of December 31, 1994, the Association held no securities issued by the City or other related parties. 10. Ten-Year Historical Trend Information Ten year historical trend information designed to provide information about PERS' progress made in accumulating sufficient assets to pay benefits when due is presented in Schedules I and II. 15 I schedl SCHEDULE I BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION REQUIRED SUPPLEMENTARY INFORMATION PERS ANALYSIS OF FUNDING PROGRESS YEARS 1985 THROUGH 1994 (B) - (A) (A) (B) UNFUNDED NET ASSETS PENSION (A) / (B) PENSION FISCAL AVAILABLE BENEFIT PERCENTAGE BENEFIT YEAR FOR BENEFITS OBLIGATION (1) FUNDED OBLIGATION 1985 $1,617,640 $1,957,865 82.6% $340,225 1986 1,818,046 2,012,304 90.3% 194,258 1987 1,946,629 1,955,685 99.5% 9,056 1988 2,086,031 2,385,246 87.5% 299,215 1989 2,300,599 2,469,110 93.2% 168,511 1990 2,409,110 2,554,707 94.3% 145,597 1991 2,538,897 2,568,341 98.9% 29,444 1992 2,679,535 2,662,919 100.6% (16,616) 1993 2,848,075 2,894,711 98.4% 46,636 1994 $2,685,737 $2,793,015 96.2% $107,278 (1) All amounts for 1985, 1988, 1991, and 1993 are based on an actuarial valuation. Amounts for 1986, 1987, 1989, 1990, 1992, and 1994 are based on an actuarial update of the most recent valuation. Analysis of the dollar amounts of net assets available for benefits, pension benefit obligation, and unfunded pension benefit obligation in isolation can be misleading. Expressing the net assets available for benefits as a percentage of the pension benefit obligation provides one indication of the PERS's funding status on a going concern basis. Analysis of this percentages over time indicates whether the system is becoming financially stronger or weaker. Generally, the greater this percentage, the stronger the PERS. 16 sched2 SCHEDULE II BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION REQUIRED SUPPLEMENTARY INFORMATION PERS REVENUES BY SOURCE AND EXPENSES BY TYPE YEARS 1985 THROUGH 1994 REVENUES BY SOURCE FISCAL CITY (1) STATE (1) INVESTMENT YEAR CONTRIBUTIONS CONTRIBUTIONS EARNINGS TOTAL 1985 $42,400 $59,721 $178,051 $280,172 1986 41,743 71,067 181,543 294,353 1987 41,743 78,913 114,483 235,139 1988 26,743 83,988 139,797 250,528 1989 23,621 85,015 207,540 316,176 1990 24,621 85,647 160,952 271,220 1991 27,421 70,248 205,350 303,019 1992 20,790 72,110 171,851 264,751 1993 27,790 64,039 180,055 271,884 1994 $36,092 $66,803 $42,857 $145,752 EXPENSES BY TYPE FISCAL YEAR BENEFITS ADMINISTRATIVE T TA 1985 $144,391 $13,252 $157,643 1986 79,241 14,706 93,947 1987 86,018 20,538 106,556 1988 91,380 19,746 111,126 1989 95,712 5,896 101,608 1990 154,550 8,159 162,709 1991 158,939 14,293 173,232 1992 111,337 12,776 124,113 1993 87,770 15,574 103,344 1994 $295,830 $12,260 $308,090 (1) Contributions were made in accordance with actuarially determined contribution requirements. 17 schea3 Schedule III BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION SCHEDULE OF MEMBERSHIP BENEFITS DURING THE YEAR ENDED DECEMBER 31, 1994 Spouses' & Per Service Children's Total MONTHLY PJENSIONS Mont Pensions Benefits Benefits Brunsell, Francis $244 $2,928 $2,928 Cahlander, Robert 453 $5,436 5,436 Canfield, Clarence 232 2,784 2,784 Cashman, Robert 230 2,760 2,760 Cichoski, Jerome 136 1,632 1,632 Claypatch, Jack W. 151 1,812 1,812 Considine, C. C. 213 2,556 2,556 Cornwell, Ralph R. 173 2,076 2,076 Davis, Henry 244 2,928 2,928 Draisey, Darwin 136 1,632 1,632 Durland, Esther 231 693 693 Edling, Charles 163 1,956 1,956 Fox, Robert 192 2,304 2,304 Hannay, William 293 3,516 3,516 Jacobsen, Mrs. Helen 139 1,668 1,668 Jennrich, Richard 277 3,324 3,324 Johnson, Mary P. 232 2,784 2,784 Knight, Richard 190 2,280 2,280 Kolstad, Robert 201 2,412 2,412 Larson, Louis 201 2,412 2,412 Lindman, Allen S. 280 3,360 3,360 Linner, John 271 3,252 3,252 McKinley, Marion 263 3,156 3,156 Manderfeld, Joan 266 3,192 3,192 Mason, Ruth J. 326 3,912 3,912 Miller, Irwin 255 3,060 3,060 Nerburne, George 272 3,264 3,264 Owens, Stanley 310 3,720 3,720 Paulson, Dorothy 266 3,192 3,192 Sandgren, Lial 228 2,736 2,736 Sienko, Wanda 244 2,928 2,928 Swing, Carl 256 3,072 3,072 Vaughn, James R. 267 3,204 3,204 Vaughn, William $283 3,396 3,396 Total Monthly Pensions $70,884 $24,453 $95,337 LUMP SUM DISTRIBUTIONS Boone, Steven 80,500 80,500 Eggert, Larry 70,000 70,000 Nelson, Tom 49,336 49,336 Total Lump Sums $199,836 $0 $199,836 Total Payments $270,720 $24,453 $295,173 Adjustment due to change in accrual $657 Totals (To Exhibit B) $295,830 18 invest2 BROOKLYN CENTER SCHEDULE IV FIRE DEPARTMENT RELIEF ASSOCIATION Continued next page SPECIAL FUND - INVESTMENT DETAIL DECEMBER 31, 1994 Pool Premium or Book Market Original Cost Basis Distribution Discount Value Value Coupon Maturity Premium or at of Amortized December December DQ,acriptiori Rate Date Face Value -Discount Acquisition Principal to Income 31, 1994 31, 1994 TIME DEPOSITS IN COMMERCIAL BANKS Marquette Bank Brookdale 5.00% Demand 38,263.07 38.263.07 38.263.07 38.2 3.07 MONEY MARKET & MUTUAL FUNDS AIM Growth Fund Varies Demand 20,771.91 20,771.91 20,771.91 19,283.00 American New Economy Fund Varies Demand 22,780.78 22,780.78 22,780.78 19,215.00 Income Fund of America Varies Demand 84,286.22 84,286.22 84,286.22 82,691.00 Kemper High Yield Varies Demand 77,316.22 77,316.22 77,316.22 66,142.00 Keystone Amer Strategic Inc B Varies Demand 208,890.44 208,890.44 208,890.44 178,883.00 Keystone B-2 Custodian Fund Varies Demand 93,405.93 93,405.93 93,405.93 78,894.00 Keystone B-4 Custodian Fund Varies Demand 99,614.96 99,614.96 99,614.96 80,973.00 r+ ' to Keystone K-1 Custodian Fund Varies Demand 23,626.88 23,626.88 23,626.88 20,017.00 Pilgrim Prime Rate Trust Varies Demand 210,589.78 210,589.78 210,589.78 192,143.00 RJR Nabisco Cum Pfd Varies Demand 12,500.00 12,500.00 12,500.00 10,313.00 TCW Convertible Securities Fund Varies Demand 19,982.55 19,982.55 19,982.55 15,500.00 Travelers Corp Cum PF PFD Varies Demand 25,000.00 25,000.00 25,000.00 25,000.00 Prime Cash Varies Demand 11,724.19 11,724.19 11,724.19 11,724.00 John Kinnard Money Market Fund Varies Demand 427.08 427.08 427.08 427.00 Princor Fund Varies Demand 75,838.70 75,838.70 75,838.70 75,839.00 Total Money Market & Mutual Funds 986,755.64 986,755.64 986,755.64 877,044.00 LESS: Valuation Allowance -109,712.00 -109,712.00 Net Money Market and Mutual Funds 877,043.64 877,043.64 877,044.00 BROOKLYN CENTER SCHEDULE IV FIRE DEPARTMENT RELIEF ASSOCIATION Continued next page SPECIAL FUND - INVESTMENT DETAIL DECEMBER 31, 1994 Pool Premium or Book Market Original Cost Basis Distribution Discount Value Value Coupon Maturity Premium or at of Amortized December December Description Rate Date Face Valua =Discount 8cguisition Principal to Income 31, 1994 -a1. 1244 UNITED STATES GOVERNMENT OBLIGATIONS OR AGENCIES FHLMC MLTCL Series 1250 7.00% 4/15/20 100,000.00 -1,500.00 98,500.00 25.17 98,525.17 92,117.00 FHLMC MLTCL Series 1334 7.00% 10/15/06 10,000.00 -50.00 9,950.00 1.48 9,951.48 9,521.00 FHLMC MLTCL Series 1560-C 5.75% 5/15/23 50,000.00 -1,000.00 49,000.00 45.27 49,045.27 50,000.00 FHLMC MLTCL Series 1625 6.00% 12/15/08 60,000.00 -300.00 59,700.00 -4,596.66 40.95 55,144.29 45,394.00 FHLMC MLTCL Series 1702 5.00% 10/15/16 50,000.00 -687.50 49,312.50 -2,665.30 58.38 46,705.58 43,548.00 Fed Natl Mort Assoc 1990-21 9.00% 3/25/13 9,969.29 -150.00 9,839.29 100.05 9,939.34 10,021.00 Fed Natl Mort Remic 1993-16 CL 7.501 10/25/19 40,000.00 -50.00 39,950.00 0.47 39,950.47 37,319.00 Fed Natl Mort Remic 1993-18 CL 6.5096 2/25/08 27,878.29 -915.88 26,962.41 200.94 27,163.35 23,278.00 N Fed Natl Mort Remic 1993-44 CL 6.50% 11/25/22 60,000.00 60,000.00 60,000.00 49,366.00 CD Fed Natl Mort Remic 1993-69 CL 5.50% 5/25/23 45,186.10 -360.48 44,825.62 49.14 44,874.76 41,913.00 Fed Natl Mort Remic 1993-118 6.50% 10/25/07 4,723.64 200.00 4,923.64 -176.38 4,747.26 4,617.00 Fed Natl Mort Remic 1993-210 5.00°% 1/25/23 58,771.23 58,771.23 58,771.23 58,771.00 Fed Natl Mort Step Up Bonds 7.75% 10/4/04 135,000.00 135,000.00 135,000.00 132,300.00 G.N.M.A. Remic 94-3 7.50% 3/16/07 100,000.00 500.00 100,500.00 -16.80 100,483.20 95,000.00 US Treasury Strip 11116 0.00% 11/15/16 225,000.00 -179,489.25 45,510.75 6,097.98 51,608.73 39,656.00 US Treasury Strip 5/15 0.00% 5/15/15 225,000.00 -174,226.50 50,773.50 6,340.85 57,114.35 44,649.00 US Treasury Strip 11/17 0.00°% 11/15/17 250,000.00 -202,852.50 47,147.50 6,600.47 53,747.97 40,703.00 Govt. Natl. Mort. Assoc. 2974 8.00°% 12/15/03 25,000.00 156.25 25,156.25 -20,329.67 -108.36 4,718.22 4,445.00 Govt. Natl. Mort. Assoc. 3481 8.00% 4/15/04 25,000.00 -1,000.00 24,000.00 -21,984.65 686.34 2,701.69 2,870.00 Govt. Natl. Mort. Assoc. 6473 8.00% 8/15/05 100,000.00 -2,145.36 97,854.64 -79,296.85 1,455.12 20,012.91 19,704.00 Govt. Natl. Mort. Assoc. 90174 9.50% 6/15/09 30,095.00 -677.14 29,417.86 -25,328.86 347.97 4,436.97 4,913.00 Govt. Natl. Mort. Assoc. 49975 11.00% 6/15/11 50,000.00 701.97 50,701.97 -35,544.70 -270.00 14,887.27 15,716.00 Govt. Natl. Mort. Assoc. 219884 9.50°% 8/15/17 24,942.25 872.98 25,815.23 -22,435.14 -202.31 3,177.78 2,590.00 Govt. Natl. Mort. Assoc. 219912 9.50% 8/15/17 49,933.15 499.33 50,432.48 -42,490.93 -119.28 7,822.27 7,682.00 Federal Home Loan Mortgage Bonds 8.00% 3/21/07 97,505.55 -1,462.56 96,042.99 -84,973.59 861.00 11,930.40 12,530.00 Total U.S. Government Obligations & Agencies 1,854,024.50 -563,936.64 1,290,087.86 -339,646.35 22,018.45 972,459.96 888,623.00 BROOKLYN CENTER SCHEDULE IV FIRE DEPARTMENT RELIEF ASSOCIATION Continued from prior page SPECIAL FUND - INVESTMENT DETAIL DECEMBER 31, 1994 Pool Premium or Book Market Original Cost Basis Distribution Discount Value Value Coupon Maturity Premium or at of Amortized December December Description Rate Date Face Value -Discount Acquisition Principal to Income 31, 1994 31, 1994 CORPORATE BONDS OR DEBENTURES Atlantic Richfield 10.380 7/15/95 50,000.00 -437.50 49,562.50 413.50 49,976.00 50,875.00 CM Intl Income Euro 13530 0.00°% 9/11/00 25,000.00 -9,997.20 15,002.80 2,274.85 17,277.65 15,866.00 CM Intl Income Euro 13530 0.00% 9/11/00 35,000.00 -22,206.08 12,793.92 9,788.06 22,581.98 20,734.00 Commercial Federal Sub Notes 10.25°% 12/15/95 43,000.00 43,000.00 43,000.00 39,990.00 Countrywide Funding Ser 1993-5 7.135k 12/25/23 40,000.00 -1,400.00 38,600.00 35.93 38,635.93 40,000.00 Delta Airlines Notes 8.25% 5/15/96 30,000.00 1,531.30 31,531.30 -842.11 30,689.19 29,677.00 N General Mills Step Up 8.00$ 10/31/06 30,000.00 30,000.00 30,000.00 29,250.00 F� Green Tree Accep Sub Note 10.25°% 6/1/02 30,000.00 3,902.80 33,902.80 -721.14 33,181.66 31,350.00 Leucadia Natl Corp SR Sub Note 10.38% 6/15/02 65,000.00 7,802.80 72,802.80 -1,550.00 71,252.80 68,088.00 MCA 1992-1 Multi Family 10.25°% 2/20/01 50,000.00 50,000.00 50,000.00 50,000.00 Mcdonnell Douglas Gen Term Notes 7.50% 7/15/00 50,000.00 50,000.00 50,000.00 47,028.00 Money Funding Euro #18409 8.25% 10/29/96 50,000.00 -3,747.20 46,252.80 2,340.53 48,593.33 49,815.00 Moore McCormack Bonds 8.88% 7/15/01 26,000.00 26,000.00 26,000.00 26,414.00 New England Life Euro Bond 0.00% 2/1/99 105,000.00 -44,882.60 60,117.40 17,581.58 77,698.98 73,500.00 Norwest Financial Inc Sr Notes 7.25°% 11/1/95 10,000.00 502.80 10,502.80 -335.98 10,166.82 9,976.00 Pepsico Med Term Notes 7.6016 9/15/04 55,000.00 55,000.00 55,000.00 51,936.00 Salomon Ser G Notes 6.3516 2/15/04 25,000.00 25,000.00 25,000.00 20,755.00 U.S. Air Equip Cert Trust Ser G 9.95% 1/1/95 35,000.00 1,840.30 36,840.30 -1,840.30 35,000.00 35,000.00 Westinghouse Credit Med Term Not 9.30°% 6/7/99 60,000.00 4,655.60 64,655.60 -1,313.38 63,342.22 60,313.00 Total Corporate Bonds & Debentures 814,000.00 -62,434.98 751,565.02 0.00 25,831.54 777,396.56 750,567.00 TOTAL INVESTMENTS (TO EXHIBIT A) 2,956,959.59 -339,646.35 47,849.99 2,665,163.23 2,554,497.07 Deloifte & 0 Touche LLP / 400 One Financial Plaza Telephone: (612)397-4000 120 South Sixth Street Facsimile: (612)397-4450 Minneapolis, Minnesota 55402-1844 April 17, 1995 Honorable Mayor and Members of the City Council City of Brooklyn Center,Minnesota We have audited the general purpose financial statements of the City of Brooklyn Center(the City)for the year ended December 31, 1994 and have issued our report thereon dated April 17, 1995. Our professional standards require that we communicate with you concerning certain matters that may be of interest to you in fulfilling your obligation to oversee the financial reporting and disclosure process for which management of the City is responsible. We have prepared the following comments to assist the Mayor and City Council in fulfilling that obligation. Our Responsibility under Generally Accepted Auditing Standards: Our responsibility under generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States, has been described to you in our engagement letter dated December 6, 1994. As described in such letter, those standards require that we plan and perform the audit to obtain reasonable, rather than absolute, assurance about whether the general purpose financial statements are free of material misstatement. Those standards also require that we obtain an understanding of the City's internal control structure sufficient to enable us to properly plan our audit. We have previously issued a separate report to you, also dated April 17, 1995, containing our comments on the internal control structure. Significant Accounting Policies: The City's significant accounting policies are disclosed in the notes to the general purpose financial statements. There were no changes in these policies during 1994. Management Judgments and Accounting Estimates: Accounting estimates are an integral part of the financial statements prepared by management and are based upon management's current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. All of the significant management judgments and accounting estimates in the 1994 general purpose financial statements were normal and recurring and were determined on bases consistent with those used in prior years. 10 Deloittebuche Tohmatsu International i . Honorable Mayor and Members of the City Council City of Brooklyn Center, Minnesota April 17, 1995 Page 2 Other Information in the Annual Report: When audited financial statements are included in documents containing other information, such as the City's Comprehensive Annual Financial Report, generally accepted auditing standards require that we read such other information and consider whether it, or the manner of its presentation, is materially inconsistent with the information, or the manner of its presentation, in the general purpose financial statements audited by us. We have read the other information in the City's Comprehensive Annual Financial Report and have inquired as to the methods of measurement and presentation of such information. If we had noted a material inconsistency, or if we had obtained any knowledge of a material misstatement of fact in the other information, we would have discussed this matter with management and, if appropriate, with the Mayor and City Council. Disagreements with Management: We had no disagreements with management regarding the application of accounting principles, the basis for management's judgments about accounting estimates,the scope of our audit, disclosures to be included in the general purpose financial statements, or the wording of our report on the 1994 general purpose financial • statements. Consultation with Other Accountants: Management informed us that there were no consultations with other independent public accountants regarding accounting or auditing matters during 1994. Major Issues Discussed with Management Prior to Retention: We discussed no major accounting or auditing issues with management in connection with our retention as the City's auditors in 1994. Difficulties Encountered in Performing the Audit: We experienced no difficulties in dealing with management relating to the performance of our audit. We received the full cooperation of management and staff. Our audit scope was essentially the same as reviewed with you in our December 6, 1994 engagement letter. We believe that we have direct and unrestricted access to the City's senior management and to the Mayor and City Council. Honorable Mayor and Members of the City Council City of Brooklyn Center,Minnesota April 17, 1995 Page 3 This report is intended solely for the use of the Mayor and City Council and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which, upon acceptance by the City, is a matter of public record. We will be pleased to further discuss this report with you at your convenience. Yours truly, e • Deloifte & • Touche LLP ®® 400 One Financial Plaza Telephone: (612)397-4000 120 South Sixth Street Facsimile: (612)397-4450 Minneapolis, Minnesota 55402-1844 April 17, 1995 Honorable Mayor and Members of the City Council City of Brooklyn Center,Minnesota In planning and performing our audit of the general purpose financial statements of the City of Brooklyn Center(the City) for the year ended December 31, 1994, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing an opinion on the general purpose financial statements, and not to provide assurance on the internal control structure. In connection therewith, we submit this Commentary Report containing our comments, observations, and recommendations concerning administrative and operating matters which resulted from our audit of the City's 1994 general purpose financial statements. Our observations and recommendations are presented under the following main captions: I. Administrative and Operating Matters II. Status of Prior-year Recommendations This report is intended solely for the information and use of the Mayor and City Council, management, and others within the organization. We will be pleased to discuss these recommendations with you and, if desired,to assist you in implementing any of them. Yours truly, Z,6C° Deloittebuche Tohmatsu International ADMINISTRATIVE AND OPERATING MATTERS • Cash Collateralization: Observation: Minnesota State Statute 118.01 Subdivision 2 stipulates that the City's depository institution must collateralize deposits in excess of FDIC insurance coverage. Such collateral must have a fair market value of at least 110% of the amount of excess deposits if collateralized by qualified investments other than notes secured by first mortgages. On three of the twelve dates we selected for testing of the adequacy of collateral, we found collateral pledged by the City's depository institution to be less than 110% of the City's excess deposits. These deficiencies were caused by incorrect communications from the bank which led to the bank having less actual collateral than what the City's records showed. This situation was corrected as soon as we brought it to the City's attention. Recommendation: We recommend that the City closely monitor the adequacy of collateral on hand throughout the year, particularly when large deposits are made. Securities and Exchange Commission (SEC) View on Disclosures by Municipal Security Issuers: Observation: The City issues timely audited financial information and has maintained a Certificate of Achievement of Excellence in Financial Reporting for over 11 years. In 1994,when the SEC issued Financial Reporting Release(FRR)42,Statement of the Commission Regarding Disclosure Obligations of Municipal Securities and Others, the City was well-positioned to conform with the SEC's recommendations. Currently, only annual financial information is prepared for the secondary market. Background: FRR 42 provides the SEC's views with respect to disclosure obligations of participants in the municipal securities markets under the antifraud provisions of federal securities laws. FRR 42 is an interpretive release that"suggests disclosure practices that address and minimize the risk of misleading investors." FRR 42 indicates that within six months of the fiscal year end,municipal issues should provide the marketplace with the following: • Financial statements that are audited in accordance with GAAS and that are prepared in accordance with GAAP or are accompanied by a quantified explanation of material departures from GAAP • Other pertinent financial and operating information • A narrative discussion that analyzes financial condition, results of operations, and facts that are likely to have a material impact on the issuer 2 . FRR 42 indicates that, in the case of some conduct financing, information should be provided to the secondary market on a more frequent basis than annually. Recommendation: This information is provided to inform the City of a substantial change in the SEC's involvement in municipal financing. Community Development Block Grant Expenditures: Observation: During our testing of expenditures reimbursable under the Community Development Block Grant program, we noted reimbursable and nonreimbursable expenditures that were accounted for in the same project number. In addition, expenditures related to City-owned properties in the scattered site redevelopment program were charged to the project without specific authorization by the Community Development Specialist. The Community Development Specialist authorizes all expenditures of the City which are to be reimbursed through the Community Development Block Grant program. Although the Community Development Specialist reviews all expenditures prior to submission for reimbursement,the opportunity for submission of an unallowable cost exists without proper segregation and specific authorization. Recommendation: • The City should consider creating separate project codes for expenditures reimbursable from federal funds. Expenditures relating to City-owned properties not specifically authorized by the Community Development Specialist should be segregated from reimbursable expenditures. Capitalization of Fixed Assets: Observation: During our testing of fixed asset additions, we noted that the City capitalizes expenditures exceeding$500 provided the estimated useful life exceeds one year. These costs are amortized over the estimated useful life of the asset. Recommendation: The City should consider increasing its capitalization limit(e.g. from $500 to $1,000) to provide for more efficient use of human resources and avoid excessive paperwork. 3 STATUS OF PRIOR-YEAR RECOMMENDATIONS Cash Collateralization: The comment is repeated in the current-year letter. Uncollected Property Taxes: In 1993, we recommended that the City monitor the level of tax abatements and delinquencies and consider increasing the estimated uncollectible allowance to reflect this activity. During 1994, the City followed our recommendation and increased the estimated uncollectible allowance based on a detailed review of activity. General Fund Programs: In 1993, we recommended that the City consider moving programs into other funds or establishing new funds (e.g., data processing to an internal service fund and recreation programs to an enterprise fund) to avoid a potential decrease in state funding. The City reviewed General Fund programs and determined that the present location of these programs is adequate. Workers' Compensation Self-Insurance: In 1993, it was recommended that the City consider a self-insurance program for workers' compensation. The City has considered the costs benefits of creating such a program and has determined that it is not the solution for the City at this time. Governmental Accounting Standards Board Statement No. 20: This informational comment related to the City's need to elect whether to adopt Financial Accounting Standards Board (FASB) statements issued after November 30, 1989, excluding those that conflict with or contradict GASB pronouncements. The City has elected not to apply FASB Statements and Interpretations issued after November 30, 1989. • 4 MEMORANDUM TO: Mayor Myrna Kragness Councilmember Barbara Kalligher Councilmember Kristen Mann Councilmember Kathleen Carmody Councilmember Debra Hilstrom FROM: Charlie Hansen, Finance Director CH DATE: June 21, 1995 RE: RESPONSES TO THE AUDITOR'S MANAGEMENT LETTER At the June 26, 1995 City Council meeting, Cliff Hoffman of Deloitte & Touche will make a presentation on the audit of city operations for the year 1994. He will review several reports, including a Management Letter which makes four recommendations re g ar di n g administrative and operating issues. This memo provides the Management Responses to the Auditor's Management Letter. If Councilmembers wish to discuss these issues, they may do so at the June 26, 1995 meeting or request that this be put on a worksession agenda for further discussion. CASH COLLATERALIZATION: This problem occurred in 1993 as the result of depositing tax settlements from Hennepin County which exceeded the amount of collateral pledged by Marquette Bank Brookdale. We thought a solution was achieved by making those large deposits at First Bank N.A., where they could be invested immediately. However, the problem reoccurred in 1994 when daily balances sometimes exceeded the $500,000 in collateral which Marquette Bank Brookdale had pledged to our account. This happened when we would release a large checkrun and deposit money to cover it, but the checks didn't clear back to our account for several days. Marquette Bank Brookdale has now increased the amount of pledged collateral to $1,500,000 which will prevent any reoccurrence of the problem. DISCLOSURES BY MUNICIPAL SECURITY ISSUERS: The SEC has issued new regulations to promote the release of financial information to buyers of municipal bonds. The City of Brooklyn Center has always to be responsive to this need by sending the annual financial report to those buyers of our bonds who made themselves known to us and requested the reports. The staff will work with Deloitte & Touche LLP and Springsted Inc. to insure that we meet the new SEC regulations. Our goal is to provide the financial information necessary to make Brooklyn Center bonds attractive to the bond market. COMMUNITY DEVELOPMENT BLOCK GRANT EXPENDITURES: One of the goals of the activity budget was to record all of its costs for each activity or program, regardless of where those personnel or costs otherwise would normally be charged. As a result, we captured some nonreimbursable costs along with the reimbursable cost we had traditionally recorded under CDBG. We have put new controls in place to segregate reimbursable and nonreimbursable costs. CAPITALIZATION OF FIXED ASSETS: The staff welcomes this suggestion and will take steps to implement it. i Council Meeting Date June 26, 1995,/ 3 City of Brooklyn Center Agenda Item Number O C1 Request For Council Consideration Item Description: Resolution Expressing Recognition of the Achievement of the Brooklyn Center High School Baseball Team Department Approval: -40,nx Sharon Knutson, Deputy City Clerk Manager's Review/Recommendation: No comments to supplement this report Comments below/attached Recommended City Council Action: Pass Resolution Expressing Recognition of the Achievement of the Brooklyn Center High School Baseball Team • Summary Explanation: (supporting documentation attached No ) Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION EXPRESSING RECOGNITION OF THE ACHIEVEMENT OF THE BROOKLYN CENTER HIGH SCHOOL BASEBALL TEAM WHEREAS, the Brooklyn Center High School baseball team competed in the State Class A baseball tournament; and WHEREAS, it was the first time that Brooklyn Center High School baseball team advanced to the state title in six appearances at the tournament; and WHEREAS, it is highly appropriate to recognize the accomplishment and achievement of the Brooklyn Center High School baseball team; and WHEREAS, the City Council of the City of Brooklyn Center congratulates, commends, and supports the Brooklyn Center High School baseball team. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the achievement of the Brooklyn Center High School baseball team is hereby recognized and acknowledged by the City of Brooklyn Center. Date Mayor ATTEST: Deputy 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. Council Meeting Date June 26, 1995 31 City of Brooklyn Center Agenda Item Number Request For Council Consideration Item Description: Request by Resident Greg Lutgen, 7216 Brooklyn Boulevard, to Discuss Road Modification to Wingard Lane Department Approval: Sharon Knutson, Deputy City Clerk Manager's Review/Recommendation: No comments to supplement this report Comments below/attached Recommended City Council Action: ® Summary Explanation: (supporting documentation attached No ) Mayor Kragness has been contacted by Greg Lutgen, 7216 Brooklyn Boulevard, regarding the "hammerhead" at Wingard Lane. She has requested this item be placed on this evening's agenda. Mr. Lutgen will be present to address the Council. He has emphasized this is timely because of the road work which is being done in the area. City Council Agenda Item #8f will be delivered to Council on Friday, June 23 Council Meeting Date 6/26/95 3 City of Brooklyn Center Agenda Item Number Request For Council Consideration • Item Description: Administrative Appeal Under Section 12.1202 of Housing Maintenance Compliance Orders Department Appro G. Br offman, Community Develo Director Manager's Review/Recommendation: No comments to supplement this report Comments below/attached Recommended City Council Action: Summary Explanation: (supporting documentation attached Yes ) • The City of Brooklyn Center has received a letter requesting an appeal to the Council for relief from compliance orders issued to Selwin Ortega, the owner of 610 - 53rd Avenue North (see attached). On May 26, 1995, Housing Inspector Janine Atchison issued 137 compliance orders for various violations of the City's Housing Maintenance Ordinance (Chapter 12). Chapter 12-1202 states: "When it is alleged by any person to whom a compliance order is based upon erroneous interpretation of this ordinance, such person may appeal the compliance order to the City Council sitting as a board of appeals." The Council, acting as the board, may reverse, modify, or affirm, in whole or in part, the compliance order. At the outset, it should be noted that Housing Inspector Janine Atchison was directed by me to do a total inspection of the property at 610 - 53rd Avenue North and to write every violation she found. The allegations that her actions are racially motivated are without foundation. The fourplex at 610 - 53rd Avenue North has been the subject of numerous complaints over the years. It has also been the subject of numerous inspections as a follow-up to such complaints and to successful prosecutions of such violations (see attached). Currently, Mr. Ortega is on probation through August 1995 to correct the remaining compliance orders, to repair and/or replace broken ovens, and to have no new uncorrected violations. Mr. Ortega is facing up to $700 in fines and 90 days in jail. I have attached for your review a listing of compliance orders issued to this property since Mr. Ortega became the owner. During the month of April 1995, I personally received four complaints from neighbors about the condition of the property. Those complaints focused primarily on the trash in the • yard and junk vehicles. After a review of our enforcement activity at the property, I came to the conclusion that our inspectors were spending too much time trying to get Mr. Ortega to maintain his property. On Monday evening, I will have photos taken in 1995 of some of the problems associated with this property. The photos should give the Council some insight as to the ongoing problems staff has had with Mr. Ortega's maintenance of his building. Request For Council Consideration Page 2 I will try to briefly address the issues Mr. Ortega has raised in his letter dated May 29, 1995. First, Mr. Ortega has indicated that the police department has refused to help him with a van parked on his • yard, thus destroying the lawn. You will note that lawn problems, and vehicles parked on the lawn, are a common element throughout the compliance orders list. Enclosed with this memo you will find a letter from City Attorney Bill Clelland outlining the procedures Mr. Ortega needs to follow for the City to help him with the problem. To date, I am unaware of any attempt on his part to take advantage of our assistance. Absent such efforts, the City has no legal basis to remove vehicles from private property. Second, Mr. Ortega complained about the short notice for inspection. Indeed, Mr. Ortega's property was scheduled for an inspection on May 19, 1995. Notice had been given 24 hours previously. Mr. Ortega came in May 19th and asked for a time extension because of the short notice. Janine Atchison conferred with me and we agreed to doing the inspection on Tuesday, May 23, 1995. Mr. Ortega had requested Monday, May 22, and thought May 23 was even better. Third, Mr. Ortega has stated that Janine Atchison referred to his tenants and relatives as pigs and further, she was going to cancel his license. The characterization is a gross distortion of their conversation. Mr. Ortega asked what was wrong with the property. While Ms. Atchison perhaps could have chosen a better word, she referred to the property as a sty, the obvious reference that the exterior of the property was filthy and not maintained. The conversation about his license centered on the fact that continued police calls and uncorrected maintenance violations could result in the loss of his license. Such actions require the Council's determination, not staff's. Fourth, Mr. Ortega referred to violations at other properties. Specifically, he was referring to the • identical complex at 620 - 53rd which was built at the same time by the same individual. The building in question is inspected routinely as part of the licensing procedure. The last inspection was October 5, 1995, at which time the owner received two minor corrections or compliance orders. The orders were immediately corrected. The building is well-maintained and does not have the same health/safety violations as does 610 - 53rd Avenue North. As an example, the building has fire rated doors as required as opposed to the hollow core doors at 610 - 53rd for which Mr. Ortega has been given compliance orders. Fifth, Mr. Ortega referenced the boat and trailer on his property. The City's ordinance (Chapter 19- 14a) requires vehicles, trailers and watercraft to be licensed if parked outside of an enclosed area. Sixth, Mr. Ortega indicated that Janine Atchison would not allow any time extension to come into compliance with her orders. Further, Mr. Ortega implied we would be seeing him in court. It is the position of the Community Development department that Mr. Ortega has been given numerous time extensions to resolve basically the same problems. There are issues of safety and health that have to be addressed immediately. It is staff's belief that the problems are significant enough to warrant the prosecution of these compliance orders. Any reference to pursuing the matter in court should be taken in the context that we are serious about correcting these problems and that Mr. Ortega needs to start maintaining the property or we will continue to pursue them until corrected. Seventh, Mr. Ortega questions why he is required to screen his refuse containers. The ordinance clearly requires him to. Monday evening I will have photos which clearly illustrate the need for the • ordinance. Further, the ordinance does apply to other such properties. Eighth. Again, Mr. Ortega is concerned with the compliance dates. The health and safety issues have to be dealt with immediately. The other issues can be subject to a schedule established in agreement between Community Development and Mr. Ortega to the extent that such schedule is reasonable and Request For Council Consideration Page 3 timely and full compliance is abstained . • Ninth and finally, Mr. Ortega suggested that the actions of Janine Atchison are racially motivated. While I take such accusations seriously, I directed Ms. Atchison to take stern actions with this property. Mr. Ortega indicates that the City/staff are discriminating against him and his tenants because they are Hispanic. I vehemently deny that any racial motivation is involved in the enforcement of the City's Housing Code with respect to this property or any other. The City has aggressively enforced our ordinance with other properties in our City in the past and is currently pursuing other properties besides Mr. Ortega's. It is our job to enforce Codes, Ordinances and Policies of the City, regardless of race, creed, color, marital status, religion, national origin, sex, sexual or affectional orientation, disability, age, status with regard to public assistance, or familial status. The City and staff have only one goal for this property which is consistent and in line with other similar properties and that is to bring it into compliance with our ordinances and have the property maintained in compliance. Because of the seriousness of the charge, and at Mr. Ortega's request, we (staff) would be willing, if the Council concurs, to have a Minneapolis housing inspector review the compliance order. It was Mr. Ortega's request to use Minneapolis. We have been in touch with Minneapolis and they are willing, provided that Mr. Ortega signs a release holding them harmless. It would be my recommendation that the Council uphold the compliance orders in total. However, you might wish to avail yourselves of the offer from the City of Minneapolis given the nature of the charges before making your determination. Monday evening I will be present, along with Police Chief Scott Kline, Fire Chief Ron Boman and Housing Inspector Janine Atchison to answer any questions you might have. • • Attachments: 1) Mr. Selwin Ortega's letter dated May 29, 1995 2) Mr. Richard Cabrera (Attorney) letter dated June 2, 1995 3) Chapter 12 - Sections 1202 and 1203 4) Compliance Orders issued May 26, 1995 5) Partial listing of previously issued Compliance Orders 6) Letter from Prosecuting Attorney Bill Clelland, outlining noting court determination August 16, 1994 7) Letter from Bill Clelland dated February 2, 1995, outlining procedure to remove vehicles from private property 8) Compliance Order issued October 5, 1994, to the owner of 620-53rd Avenue N 9) Letter to Mr. Ortega dated June 9, 1995, informing him of the hearing date and time 10) Housing Inspector Janine Atchinson, memo and attachments i �S�l Ct�C . SELW NT AND ODELIA ORTEGA 1404 DOWLING AVENUE NORTH MINNEAPOLIS MN 55412 TELEPHONE 612-827-3377 ri- DATE: May 29, 1995 TO: Manager of the City of Brooklyn Center cc: City Inspector Janine Atchison cc: William Clelland, City Prosecutor cc: City Counsel Members cc: Police Chief of the City of Brooklyn Center I writing you this letter to exercise our right of appeal (Section 12-1202 of the Ordinance). The reason we decided to appeal is because we feel that the letter that Inspector Atchison send to us on May 26, 1995 is mainly a result of hate and discrimination from the City Inspectors department and the City of Brooklyn Center. We base our accusations on hundreds of ® documents, pictures, events, and last two meetings that we have with Inspector Atchison and a few with police officers of the City of Brooklyn Center. On the beginning of this month I contact the police of Brooklyn Center four times because a stranger parked a blue van on top of my yard, seriously damaging the grass on my property, and police did nothing to stop this kind of damaging on my building, Also I want you to know that this is an on going situation since we bought this property five years ago, were people damage and vandalizes our property, and the law enforcement of the city of Brooklyn Center denied to us protection and help to stop this situation. Many many times we call the police and the police even refused to make a report when somebody is destroying our property. A couple of weeks ago, about 4:30 p.m. Inspector Atchison posted a letter on the door of my house located on 1404 Dowling Avenue N Mpls MIN, giving to us one working hour to go and open every single apartment of our property located on 610 5') Ave. N. Brooklyn Center. I came personally to her department and explained to her that all people living in that complex, don't have enough notice to open their apartments because they were already working, or have other appointments, and she told me she don't care. and she refers to our property as the pigs house and to my relatives that live on that property as a pigs. All people that live on this property are Hispanics and as a human beings we like to be treated properly and with respect. She also told me that what she really is going to do is to cancel our license and force our relatives to move out from the City of Brooklyn Center, and she is going to do everything in her hands to make this possible. She also told me about the blue van that somebody parked on my grass ( The same van I already reported to the police ) and give me verbal orders to remove such vehicle • immediately from my yard. I explained to her that without help from the police is very hard for me to do it because I contacted several towing companies in Brooklyn Center and they want to see a prove of ownership or a police action before they can tow the car. She told me she do not care, all she knows the car has to be moved or she is going to write a Citation to me. Under that kind of pressure and very scary, I was forced to brake the door off the van and with a screw driver and hammer I busted the steering wheel of the van, then pushed the van to the streets. I feel that to comply with a City Ordinance I was push to commit a crime by damaging and braking someone's car. Also, after a 3rd time on the same day that I came to Inspector Atchison and explained to her that the residents of my fourplex were not available and I don't have the keys to open the units she decided to give me 48 working hours, so I can give proper notice to my tenants to open their apartments. She told me I was very lucky that she change her mind, othenvise, she was going o et warrants from the Prosecutor of the City of Brooklyn Center g g yn ty and bring the doors down from every apartment. The second meeting with Inspector Atchison was on my property were she explained to me that what she's going to do is to drive b my roe eve day and to et everything she Y A property rtY rY Y �' g � g need to cancel the license on our property and then move our relatives and people that live in that complex out of the City of Brooklyn Center. I told her that if she drives by my building • everyday, she will see other city violations that we have documented and many times giving to City Inspectors, but she told me she don't care about other properties. She also told me that my brother's boat has to be moved from the parking lot because it's not licensed, I explained to her that my brother has the sticker in the inside of his apartment, but she say even if he has a license the boat has to go. I asked her why other people in the City of Brooklyn Center can have there boats parked in their parking lots, then she say she don't care. On this same meeting Inspector Atchison told me that she's going to send us a Building Maintenance Compliance Order, she also said that there will not be any kind of extensions allow, so she knows for sure she will be seeing us in Court. In the last rive years City Inspectors make us move our garbage containers more then five times, which became very expensive, because every time we have to tear down the wood screens that we made for our garbage sites. When I asked them why our neighbors and hundreds of people in the city of Brooklyn Center don't screen a garbage containers, so such containers can't be seen from the streets, they told me this city ordinance didn't apply to them.. On the last letter that Inspector Janine Atchison sent to us, you can see another example of the way the City Of Brooklyn Center is treating us different, next to our fourplex there is another fourplex, that was made identical to our building, by the same contractors, same original owners, and Inspector Atchison is asking us to replace all 8 doors of every apartment, for solid core doors, (approved rated door and assembly according to Sec. 12 of the UBC. Sec. 12-7/04, 12-709, 12-302.) First 1 want to mention to you that this complex has three main doors, one on the front and two on each side, all solid core doors. Second, I checked the same doors on the building next to us and Inspector Atchison, or any other Inspectors of the City of Brooklyn Center, never asked to them on recently or past inspections to replace the same doors. On the same letter that we received from Inspector Atchison dated May 26, 1995 (Building Maintenance Compliance Order) she gave us orders to comply with 137 items that need to be done on the inside and outside of our building, which include some like putting a new roof, replace 8 doors, but gave us only ten working days, with no extensions of any kind allow. I do not know if Inspector Atchison understands what need to be done when somebody is going to the process to install a new roof of any property of any City of the United States, such as calling different contractors licenses by the City, getting different estimations, then after choose a construction company, go into a contractor schedule, who is going to apply for City permits as needed. Now I know what she meant, when she told me, that she knows for sure that we will be seeing in Court. We also want to remind you that people of color and minorities living on the City of Brooklyn Center Need : 1. To be respected, (not to be named after farm animals) 2. To Have equal housing opportunities (not to be treated by a City Official to be removed from . the City of Brooklyn Center, we believe we have the right to live any where we choose and can afford ) 3. To have equal access of Justices (to be able to protect are property against any crime that brings destruction into our building, to be able to get response from the Law Enforcement of de City of Brooklyn Center when this happens). 4. To be able to be hire and work for the City of Brooklyn Center ( So people working now at the City of Brooklyn Center will understand that even with different color on our skin and race, we still humans beings. From our part we going to: 1.Work together with any City Official of the City of Brooklyn Center, and do everything that need to be done, to make this City, a safety place to live, a beautiful City, but also a City the complies with Federal Laws that give equal opportunities and rights to people of all colors y rece that wants to live on the City of Brooklyn Center. 2. We will prey every day, so Inspector Atchison and the city of Brooklyn Center understand that all man, woman, and children were created the same by GOD. Sincerely • Selwin Ortega Odelia Ortega . CABRERA AND ASSOCIATES Attorney and Counselor at Law Arbitration/Registered ADR Neutral 5605 Albert Street North Shoreview, Minnesota 55126-8518 Phone/FAX: 612 . 785 . 0954 June 2 , 1995 Brad Hoffman Director of Community Development City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Dear Sir : This is in regard to the activities of Janine Atchinson of the City ' s inspections department . Ms . Atchinson has had numerous occasions to interact with my client , Mr . Selwin Ortega. who is an owner of rental property within the City of Brooklyn Center . Mr . Ortega ' s property is located at 610 53rd Avenue North . • Ms . Atchinson ' s conduct toward Mr . Ortega over the last six Years (since the property was purchased) has been , in our opinion, no less than harassing and unprofessional and looks to be racially motivated. M,yr client has numerous instances of discriminatory treatment to relate , Ino:t occurring dt the hands of Brooklyn Center inspector Atchinson . For example . she has told him, that Mexicans (all his tenants are of Mexican descent) were not welcome in the city; she has told him that his tenants (many of whom are members of his family) are pins ; and she has directly stated to him that . ne wants LO take nis license and force Nina and his Mexican tenants out of r_ :e City of Brooklyn Center . This behavior is uncdlled for and unconscionable . it is undeniable , is the worst. ':ind of racism and seeks to deny ^IY client . his family and his tenants the most. basic of riahts . Ms . AtChinson ' s racism I zr:'I atalit . She .;as issued my client numero_ s Orders to chancre or improve his Property so that it would coInpjv_ with "code" or with her current Wiiam. UIIe O these Order ila'v e r'een cotradictor v. such as more than once chanaing the i ocation or a trash container and a shielding fence . eY' orders have been ancons-1szent In other ways and in fact lave had no appa 'ent real bas--is CUpt racially based harassment and discrimind--ion . This behavior on Ms . Atchinson ' s part has been cons 41stent Since the day Mr. Ortega Qur'Rased property and move(( � amselr and hiti f:am Y in . T ana Iny client are also concerned %iii, otyler ni -j r, ji h • ba g o n t n cf 1- 1 T' I t b u, I d mention two epi-sode-s) . T� is troublIng to my client that the po C e s`_'-ea., t(D be unable to either spot and -top these sorts of harassment , or to make any arrests . It is further troubling to him that the city inspector seems to appear as soon as the vandalism occurs to issue a tag for a violation. The latest item in MS . Atchinson ' s arsenal of racist behavior is a list of 137 code requirements she issued to Mr. Ortega on last Friday . May 26 . Ms . Atchinson issued the list with the statement that Mr . Ortega had exactly ten working days to be in compliance on all items . She told him there would be no extension-- and that he shouldn ' t even bother to ask for any . She stated that she, in fact . intended to see him in court . Presumably this was to be for license violations , for she again said that she was going to "get" his license . It is of no small interest to me to learn that there is another ident- ic-al building next door '"_o Mr. 0 r It--e a a That twin building ' s owner has not had the same demands made of him that Mr . Ortega has . That twin building has the same fixtures and � appurtenances as Mr. Orte-ca ' s . Yet its owner was not issued a 137 item list of alleged violations . Nor.. to the best of ouu- knowledge , has inspector Atchinson threatened to put him and his tenants oilt of Frankly 1 am appalled at this blatant racism and denial of my Di: -; can Client ' s rig-'11-11: 1(tal-Id -1-12at of his family and r-enants Mex.L descent) to live wherever tnev may choose . My client is COITID.ving with Ms . Atchinso.-I ' s as he has complied with all others in the past . But frankly he is tired of being mistreated by ne racist behavio_r Of a represen'at- 1-ve, o,: t 171.e '::i`_, of Brooklyn Center. 7 01_1r demands are ver'y' simple . -eave Mr . C)rteaa arid his tenants U. a i cl,n e . Denma',M_11 no Special c­Dn,:' !T- i(Dr,1s C)T t 1-1 e D o,n I v T,,71 lat- the law requires . Offer- them the same police protection and diving - _j -r-1(�j -1 -P o n Sz a S h r e-1 t o f t he t1v s inhabi tants . X­ )n inspector Atchinson ' s racist attitude away from Mr. Or t e cT a and This. is a and the only one City o" �_y Brooklyn Center will racelve . Should this pattern of racially discriminatory behavior continue . should there be even one episode . we will pursue the appropriate remedies in the courts . m a"'DID r e C t vol-n- review -Lhi-, matze­.­ and look -forward to your n, T: J 7 state trom june 'hroucrh 10 and JJ 0. n,op e o h tza. f roi,�, c-n. i 11-e C U,1*Fi V e ry r 1-1 1V C-1 u T cha. (-'a rp'--ra L Section 12-1201. COMPLIANCE ORDER. Whenever the compliance official determines that any building or portion thereof, or the premises surrounding any of these, fails to meet the provisions of this ordinance, a compliance order setting forth the violations of the ordinance and ordering the owner, occupant, operator, or agent to correct such violations shall be issued. This compliance order shall: 1. Be in writing. 2. Describe the location and nature of the violations of this ordinance. 3. Establish a reasonable time for the correction of such violation and notify of appeal recourse. 4. Be served upon the owner or agent or occupant, as the case may require. Such notice shall be deemed to be properly served upon such owner or agent, or upon any such occupant, if a copy thereof is: a. Served upon owner, agent or occupant personally; or b. Sent by registered mail to his last known address; or C. Upon failure to effect notice through (a) and (b) as set out in this section, posted at a conspicuous place in or about the building, or portion thereof, which is affected by the notice. Section 12-1202. RIGHT OF APPEAL. When it is alleged by any person to whom a compliance order is directed that such compliance order is based upon erroneous interpretation of this ordinance, such person may appeal the compliance order to the city council sitting as a board of appeals. Such appeals must be in writing, must specify the grounds for the appeal, must be accompanied by a filing fee as set forth per council resolution, in cash or cashier's check, and must be filed with the department of planning and inspection within five (5) business days after service of the compliance order. The filing of an appeal shall stay all proceedings in furtherance of the action appealed from, unless such a stay would cause imminent peril to life, health, or property. Section 12-1203. BOARD OF APPEALS DECISION. Upon at least five (5) business days notice to the appellant of the time and place for hearing the appeal, and within thirty (30) days after said appeal is filed, the board of appeals shall hold a hearing thereon, taking into consideration any advice and recommendation from the advisory housing commission. The board of appeals may reverse, modify, or affirm, in whole or in part, the compliance order and may order return of all or part of the filing fee if the appeal is upheld. CITY OF BROOKLYN CENTER PLANNING AND INSPECTION DEPARTMENT PHONE (612) 569-3344 FAX (612) 569-3494 BUILDING MAINTENANCE COMPLIANCE ORDER i DATE: May 26, 1995 COMPLIANCE DATE: June 9, 1995 TO: Selwin and Odelia Ortega 1404 Dowling Ave N Minneapolis, MN 55412 cc: William Clelland, City Prosecutor cc: Tenants COMPLIANCE OFFICIAL: Janine Atchison The following violations of the Building Maintenance and Occupancy Ordinance were cited during a recent inspection of the above premises. You are hereby informed that these violations must be corrected on or before the COMPLIANCE DATE indicated. Failure to correct violations or to make satisfactory arrangements to correct violations acceptable to the compliance official, may result in suspension or revocation of your rental dwelling license if applicable. In addition, failure to comply may result in the issuance of a citation which, upon conviction, is punishable by fine and/or imprisonment. Section 12-1202 of the Ordinance provides for a fee of $25.00 to be charged for each reinspection necessary after the first reinspection. The reinspection fee(s) will be payable at the time of license renewal for the property. Section 12-1202 of the Ordinance provides for Right of Appeal, when it is alleged that a Compliance Order is based upon erroneous interpretation of the Ordinance. The Appeal must be submitted to the Inspection Department, in writing, specifying the grounds for Appeal, within five (5) business days after service of the order, and must be accompanied by a filing fee of $15.00 in cash or cashier's check. If you have any questions or comments, please contact me at 569-3344, Monday through Friday, between 8:00 a.m. and 4:30 p.m. I Page 2 of 8 pages 610 53rd Ave N May 26, 1995 DESCRIPTION OF VIOLATIONS AND ORDINANCE SECTION Building Exterior and Grounds 1. Scrape and paint all exterior trim, soffit and facia. Sec. 12-702 2. Repair or replace storm gutters and remove all chipping and peeling paint. Sec. 12-702 3. Remove volunteer growth around foundation. Sec. 12-702 4. Maintain yard ground cover of vegetation, garden, hedges, shrubbery or related decorative materials consistent with prevailing community standards. Sec. 12- 711 5. Provide and maintain in good condition a paved and delineated parking area and driveway. Sec. 12-316 6. Remove all garbage disposal facilities that do not have water tight covers and are not screened from public view. Sec. 12-306, 7-102 7. Provide sufficient containers for the storage of refuse accumulated on the premises between disposal and collection. Sec. 7-102 Note: If container is not sufficient for the amount of refuse, you might consider decreasing the time between collections or increasing the size of the refuse container. 8. Complete garbage screening enclosure. Sec. 12-713 9. Replace rotten facia on front porch overhang. Sec. 12-702 10. Repair brick planters at front entry to building so that all bricks and mortar are secure. Sec. 12-702 11. Remove graffiti from all exterior surfaces and windows. Sec. 12-702 Garage 1. Repair or replace roofing. Sec. 12-707, 12-708 2. Repair holes in exterior walls. Sec. 12-707, 12-702 3. Scrape and paint soffit, facia and trim. Sec. 12-702, 12-707 Page 3 of 8 pages 610 53rd Ave N May 26, 1995 Common Hallways and Stairs 1. Remove broken plastic projecting from wall in common hallway next to unit #4. Sec. 12-704, 12-302 2. Repair or replace torn and frayed carpet in common hallway at the front entrance to unit #2. Sec. 12-302, 12-704 3. Clean floor coverings in common hallways and stairs and maintain common hallways and stairs in a clean sanitary manner. Sec. 12-302 4. Remove graffiti from front entry door. Sec. 12-302 5. Repair or replace front entry door so that it closes properly. Sec. 12-302. 12-703 6. Repair or replace torn and frayed carpet in east common stairway at unit #2. Sec. 12-302, 12-704 I Boiler Room 1. Repair ceiling in boiler room and seal all perforations according to UBC 1213. Sec. 12-709, 12-302 2. Replace broken water shut off valves on water heater #3. Sec. 12-709, 12-301 3. Replace missing pilot access panels on #1 and #3 water heaters. Sec. 12-709, 12-301 4. Secure vent pipe on all 4 water heaters. Sec. 12-709, 12-301, 12-302 5. Remove graffiti from boiler room walls. Sec. 12-301, 12-704, 12-302 Laundry Room 1. Replace missing window screen. sec. 12-703 2. Replace missing window mechanical hardware so that window can be opened and closed properly. 3. Remove graffiti from window frame. Sec. 12-704, 12-302 4. Replace missing light bulb so that there is adequate lighting. Sec. 12-504. 12- 302, 12-709 5. Replace hollow core door with approved rated door and assembly according to Sec 12 of the UBC. Sec. 12-704, 12-709, 12-302 Page 4 of 8 pages 610 53rd Ave N May 26, 1995 Unit #1 1. Replace missing outlet cover in living room. Sec. 12-504 2. Replace/reinstall missing closet door in living room. Sec. 12-709, 12-703 3. Replace missing window screens in living room and kitchen area. Sec. 12-703 4. Repair or replace window locks in living room and kitchen area so that they function properly. Sec. 12-703 5. Remove chipping/peeling paint and varnish from window sashes and frames in living room and kitchen area. Sec. 12-703 6. Secure floor trim in kitchen. Sec. 12-704 7. Repair or replace range so that right rear burners lights properly. Sec. 12-709, 12-401. 12-402 8. Repair or replace inoperable oven. Sec. 12-402, 12-709 9. Repair left kitchen cabinet door under sink so that it operates properly. Sec. j 12-402, 12-709 10. Remove old battery operated smoke detectors. Sec. 5-204 11. Properly secure hardwired smoke detector. Sec. 5-204, 12-709 12. Replace waste pipe under kitchen sink where ABS pipe and PVC pipe are mixed. Sec. 12-709 13. Repair bathroom window so that it opens, closes and locks without excessive force. Sec. 12-703 14. Replace missing window screen in bathroom. Sec. 12-703 15. Remove mildewed caulking and recaulk tile at bathtub so that tile is water sealed. Sec. 12-405 16. Repair or replace bathtub stopper mechanism. Sec. 12-709 17. Repair water damaged ceiling in bathroom. Sec. 12-704 18. Repair or replace water damage bathroom vanity cabinet where veneer is warped, cracked and broken. Sec. 12-402, 12-709 19. Repair or replace inoperable doorbell and reinstall missing cover from mechanism box in hallway. Sec. 12-709, 12-504 20. Remove chipping/peeling paint and varnish from window sashes and frames in left bedroom. Sec. 12-703 21. Secure telephone jack to wall in left bedroom. Sec. 12-709 22. Replace missing bifold closet door in left bedroom. Sec. 12-703, 12-709 23. Right bedroom--not allowed to access. 24. Exterminate for cockroaches. Extermination must be performed by a licensed pest control contractor. Sec. 12-308 25. Repair or replace front and rear entry doors with approved rated door and assembly according to Sec 12 of the UBC. Sec. 12-704, 12-709, 12-302 • 26. Properly seal wall around air conditioning unit. Check that a/c unit is functioning properly. Sec. 12-704, 12-709 Page 5 of 8 pages 610 53rd Ave N May 26, 1995 Unit #2 1. Replace missing window screens in living room and kitchen area. Sec. 12-703 2. Replace missing floor trim (mopboards) in living room kitchen and hallway. Sec. 12-704, 12-709 3. Repair or replace bifold closet door in hallway and replace missing closet door handle. Sec. 12-703, 12-709 4. Repair or replace broken door trim on rear entry door. Sec. 12-704 5. Repair door knob on rear entry door so that it functions properly. Sec. 12-709, 12-408 6. Replace missing drip pans for range top. Sec. 12-709 7. Replace water damaged bottom cabinet shelf under kitchen sink. Sec. 12-402, 12-709 8. Remove extension cord from kitchen. Extension cords may not be used as permanent wiring. Sec. 12-504 9. Secure carpet between living room and kitchen. Sec. 12-704 10. Repair or replace broken towel bar above toilet in bathroom. Sec. 12-709 11. Remove and replace mildewed caulk around bathtub. Sec. 12-704, 12-405 12. Clean or replace mildewed grout in tile around bathtub. Sec. 12-704, 12-405 13. Repair water damaged wall above shower. Sec. 12-704 14. Repair or replace bifold closet doors in left bedroom. Sec. 12-703, 12-709 15. Secure door handle on bifold closet doors in left bedroom. Sec. 12-703, 12-709 16. Replace broken outlet cover in left bedroom. Sec. 12-504 17. Repair or replace front and rear entry doors with approved rated door and assembly according to Sec 12 of the UBC. Sec. 12-704, 12-709, 12-302 Fire rating integrity of the front door has been compromised by the hole cut into it for a mail slot. 18. Repair or replace door knob of front entry door. Sec. 12-703, 12-709 19. Remove exterior key locking mechanism from rear entry door. Sec. 12-405 20. Exterminate for cockroaches. Extermination must be performed by a licensed pest control contractor. Sec. 12-308 21. Replace missing window screens in both bedrooms and bathroom. Sec. 12-703 22. Properly seal wall around air conditioning unit. Check that a/c unit is functioning properly. Sec. 12-704, 12-709 I • Page 6 of 8 pages . 610 53rd Ave N May 26, 1995 Unit #3 1. Replace hollow core, front entry door with approved rated door and assembly according to Sec 12 of the UBC and NFC. Sec. 12-704, 12-709, 12-302 2. Repair or replace window in living room and kitchen area so that they open, close and lock properly. Sec. 12-703 3. Replace missing handle on closet bifold door in living room. Sec. 12-703, 12- 709 4. Repair or replace inoperable oven and oven controls so that they function properly. Sec. 12-402 5. Replace waste pipe under kitchen sink where ABS pipe and PVC pipe are mixed. Sec. 12-709 6. Replace missing kitchen cabinet drawer. Sec. 12-402, 12-709 7. Replace broken rubber door gasket on rear entry door. Sec. 12-703, 12-709 8. Repair or replace rear entry door with approved rated door and assembly according to Sec 12 of the UBC and NFC. Sec. 12-704, 12-709, 12-302 9. Replace missing handle on closet bifold door in hallway. Sec. 12-7-3, 12-709 10. Remove old battery operated smoke detector. Sec. 5-204 11. Replace missing light fixture cover in hallway. Sec. 12-504, 12-709 12. Repair mildewed walls and ceiling in bathroom. Sec. 12-704 13. Repair leaking bathtub faucet. Sec. 12-709 14. Regrout tile around bathtub. Sec. 12-704, 12-405, 12-403 15. Recaulk around bathtub. Sec. 12-704, 12-405 16. Repair or replace window in bathroom so that it opens, closes and locks properly. Sec. 12-703 17. Remove chipping/peeling paint and varnish from window sashes and frames in bathroom. Sec. 12-703 18. Replace waste pipe under bathroom sink where ABS pipe and PVC pipe are mixed. Sec. 12-709 19. Identify source of moisture problem and repair mildewed wall in left bedroom. Sec. 12-704 20. Remove chipping/peeling paint and varnish from window sashes and frames in left bedroom. Sec. 12-703 Windows are heavily mildewed posing a serious health problem. 21. Replace missing window screens in left bedroom. Sec. 12-703 22. Replace faulty light switch in right bedroom. All electrical work must be performed by a licensed electrician. Sec. 12-504 23. Remove chipping/peeling paint and varnish from window sash and frame in right bedroom. Sec. 12-703 Window is heavily mildewed and pose a serious health problem. 24. Replace broken light fixture cover in right bedroom. Sec. 12-709 • Page 7 of 8 pages 610 53rd Ave N May 26, 1995 Unit #3 --continued 25. Exterminate for cockroaches. Extermination must be performed by a licensed pest control contractor. Sec. 12-308 26. Properly seal wall around air conditioning unit. Check that a/c unit is functioning properly. Sec. 12-704, 12-709 Unit #4 1. Repair or replace bifold closet door in living room. Sec. 12-703, 12-709 2. Repair or replace front and rear entry doors with approved rated door and assembly according to Sec 12 of the UBC. Sec. 12-704, 12-709, 12-302 3. Repair or replace bent window screen in living room. Sec. 12-703, 12-709 4. Remove chipping/peeling paint and varnish from window sash and frame in living room and kitchen. Sec. 12-703 Windows are mildewed and pose a serious health problem. 5. Replace or stretch carpet though out unit so that it is not a tripping hazard. Sec. 12-704 6. Repair left rear burner on range top. Sec. 12-402, 12-709 7. Repair or replace oven so that all components function properly and controls are easily readable. Sec. 12-709, 12-402 8. Repair kitchen cabinet door under sink and secure handle. Sec. 12-709, 12-402 9. Secure faucet handle in kitchen sink. Sec. 12-709 10. Remove hook and eye type hardware from exterior of rear entry door and frame. Padlocking is not acceptable. Sec. 12-408 11. Repair or replace bent and torn window screen in kitchen. Sec. 12-703 12. Repair or replace inoperable doorbell and reinstall missing cover from mechanism box in hallway. Sec. 12-709, 12-504 13. Remove old battery operated smoke detector. Sec. 5-204 14. Properly repair holes in bathroom door or replace door. Sec. 12-703 15. Repair or replace handle on bathroom door. Sec. 12-704, 12-709 16. Identify source of water leak in bathroom and repair. Sec. 12-708 17. Repair water damaged ceiling in bathroom. Sec. 12-704 18. Repair or replace window in bathroom so that it opens, closes and locks properly. Sec. 12-703 19. Remove chipping/peeling paint and varnish from window sash and frame in bathroom. Sec. 12-703 20. Replace window screen in bathroom. Sec. 12-703 21. Replace faucet in bathroom sink. Sec. 12-404, 12-709 22. Regout tile around bathtub. Sec. 12-704, 12-405, 12-403 23. Recaulk around bathtub. Sec. 12-704, 12-405 24. Repair water damaged ceiling in left bedroom. Sec. 12-704 Page 8 of 8 pages a610 53rd Ave N May 26, 1995 Unit #4 --continued 25. Remove chipping/peeling paint and varnish from window sashes and frames in left bedroom. Sec. 12-703 Windows are heavily mildewed posing a serious health problem. 26. Repair or replace bent window screen in left bedroom. Sec. 12-703, 12-709 27. Remove chipping/peeling paint and varnish from window sashes and frames in right bedroom. Sec. 12-703 Window is heavily mildewed posing a serious health problem. 28. Repair or replace bent window screen in right bedroom. Sec. 12-703, 12-709 29. Replace missing light fixture cover in right bedroom. Sec. 12-504, 12-709 30. Properly repair holes in entry door of right bedroom or replace door. Sec. 12- 703 31. Replace missing light fixture cover in hallway. Sec. 12-709, 12-504 32. Exterminate for cockroaches. Extermination must be performed by a licensed pest control contractor. Sec. 12-308 33. Properly seal wall around air conditioning unit. Check that a/c unit is functioning properly. Sec. 12-704, 12-709 August 15, 1990 . September 17 , 1990 Selwin Ortega 2646 Aldrich Avenue North Mpls. , MN 55411 cc: Housing File 610 53rd Avenue North First IMMEDIATE! CHECK AND VERIFY OPERABLE SMOKE DETECTORS IN ALL UNITS. (12-709) 1. Provide seed or sod for bare patches in yard. Control weeds in yard. (12-317) 2 . Trim tree rubbing on building. (12-317) 3 . Repair stucco near garage service door. (12-707) 4 . Repair planter by front entry. (12-317) 5. Remove storage behind garage. (12-306) 6 . Repair/replace storm door on west side of building. (12-307) 7 . Replace all missing storm windows. (12-703) 8 . Replace broken window in east entry storm door. (12-307) 9 . Add pipe extension to temperature pressure relief valve, to be no greater than 18" of floor, on east and west wing water heaters. (12-709) 10. Remove storage in laundry room and furnace area. (12-306) 11. Repair laundry room fire door so it closes and latches properly. (12-703) 12 . Scrape and paint trim around windows. (12-702) 13 . Scrape and paint garage as needed. (12-707) Apartment #3 14 . Repair bathroom floor tile. (12-704) 15. Replace missing window closer throughout unit. (12-703) 16. Install drain plug for bathtub. (12-405) 17. Repair back door molding. (12-703) September 18 , 1990 ® October 18 , 1990 extended 11/1/90 Selwin Ortega 2646 Aldrich Avenue North Mpls. , MN 55411 cc: Housing File 610 53rd Avenue North Second Scrape and paint garage exterior. (12-702) Scrape and paint exterior trim. (12-702) Remove storage in laundry room and furnace area. (12-306) Provide pipe extension to meet within 18" of floor on temperature relief valve. (12-709) Replace broken window in east entry storm door. (12-307) Repair planter by 'front entry. (12-317) APARTMENT #3 Repair bathroom floor tile. (12-704) Replace missing window closer throughout unit. (12-703) Install drain plug for bathtub. (12-405) Repair back door molding. (12-703) • November 5, 1990 is January 4 , 1990 Selwin Ortega 2646 Aldrich Avenue North Mpls. , MN 55411 cc: Housing File 610 53rd Avenue North Third 1. Remove storage in furnace area. (12-306) 2 . Replace broken window in east entry storm door. (12-307) Apartment #3 1. Repair/replace bathroom floor tile. (12-704) January 16, 1991 See Listing Selwin Ortega 2646 Aldrich Avenue North Mpls. , MN 55411 cc: Housing File 610 53rd Avenue North First February 1, 1991 1. Remove all unlicensed vehicles, 2 unlicensed vehicles present at time of inspection. (19-1303) 2 . Parking in yard is not permitted, 5 vehicles were parked on the lawn at the time of inspection. (12-306) 3 . Remove car seat, tires and any other debris found in yard. (12-305, 306) May 31, 1991 4 . Provide dumpster enclosure to screen view from street and adjacent properties. (35-410) THIS COMPLIANCE ORDER IS THE RESULT OF A NEIGHBOR COMPLAINT February 7, 1991 May 31, 1991 Selwin Ortega 2646 Aldrich Avenue North Mpls. , MN 55411 cc: Housing File 610 53.rd Avenue North Second 1. Parking in yard is not permitted, all vehicles must be parked on driveway surface. (12-316 , 35-704 , 710-711) 2 . Remove tires and any other debris found in yard. (12-305, 306) 3 . Provide dumpster enclosure to screen view from street and adjacent properties. (35-410) THIS IS YOUR SECOND NOTICE. FAILURE TO MARE CORRECTIONS BY COMPLIANCE DATE MAY RESULT IN A CITATION. THIS COMPLIANCE ORDER IS THE RESULT OF A NEIGHBOR COMPLAINT i July 22 , 1991 August 22 , 1991 Selwin Ortega 2646 Aldrich Avenue North Mpls. , MN 55411 cc: Housing File 610 53rd Avenue North First 1. Parking in yard is not permitted, all vehicles must be parked on driveway surface. If you do not have adequate parking facilities for the number of automobiles at your property, you will have to upgrade your parking lot to provide adequate parking(12-316, 35-704 , -710-711) 2 . Remove auto parts, chairs, and any other debris from yard. (12-305, 306) 3 . Provide enclosure to screen garbage cans from street and adjacent properties, or store containers in garage. , (35-410) 4 . Repairing automobiles, other than a tenants own vehicle, on the premises is not permitted (Chapt 35) THIS COMPLIANCE ORDER IS THE RESULT OF A NEIGHBORHOOD COMPLAINT August 22 , 1991 August 28 , 1991 Selwin Ortega 2646 Aldrich Avenue North Mpls. , MN 55411 cc: Housing File 610 53rd Avenue North FINAL 1. All inoperable, partially or totally dismantled, or unlicensed vehicles and/or vehicle parts must be stored in a building; they may not be stored in the yard nor in the driveway. Remove all inoperable, partially or totally dismantled, or unlicensed vehicles and/or vehicle parts, from driveway and/or yard and store in the garage or remove from the premises (see enclosed ordinance section 19-1303 and 19-1304) 2 . Remove plastic bags full of yard waste (grass clippings, brush, etc. ) and dispose of properly. Remove cabinets and indoor furniture from back yard and store inside (12-305, -306) FAILURE TO MAKE CORRECTIONS BY COMPLIANCE DATE WILL RESULT IN THE ISSUANCE OF CITATIONS. PLEASE NOTE: ANY FUTURE VIOLATIONS WILL RESULT IN THE ISSUANCE OF CITATIONS WITHOUT PRIOR WARNING! 3-3-92 4-2-92 Selwin Ortega 1404 Dowling Avenue North Mills. , MN. 55412 cc: Housing File 610 53rd Avenue North FIRST EXTERIOR 1. Repair storm doors on west and east entrances so that they close and latch properly. (12-703) 2 . Provide screens for all windows in the apartment. (12-703) 3 . Repair gutters so that they do not leak. (12-702) BOILER ROOM 1. Repair all leaking water heaters. (12-709) 2 . Replace all missing floor tiles. (12-704) 3 . Secure venting on the "Security " brand water heater. (12-709) 4 . Replace gas shut off valve on the "Sears" water heater. (12- 709) 5 . Repair hole in wall on the right hand side. (12-704) 6. Reduce size of waste clean out access hole. (12-709) LAUNDRY ROOM 1. Install outlet cover on wall outlet. 12-504 2 . Repair hole in wall next to dryer vent. (12-704) 3 . Cap old laundry drain pipe. (Uniform Plumbing Code) 4 . Install backflow preventer or remove threads on laundry tub faucet. (Uniform Plumbing Code) 5 . Clean under and behind washer and dryer. (12-302) 6 . Properly wire wash machine so that the extension cord is not used for permanent service. (12-504) 7 . Repair or replace floor covering. (12-704) 8 . Remove miscellaneous junk from laundry room. (Uniform Fire Code) COMMON AREAS 1. Recharge fire extinguishers on all floors. (Uniform Fire Code) 2 . Clean and keep clean common areas at all times. (12-302) 3 . Remove paint and miscellaneous junk from meter room under the stairs. This area must not be used for storage at any time. If you choose to use the front part for storage of non flammable items a separation access door must be built covering the meter opening. ( Uniform Fire Code ) Selwin Ortega 610 53rd ave. Continued, Page 2 APARTMENT #1 1. Repair or replace smoke detector before apartment is occupied by new tenant. (12-709) 2 . Repair window opening mechanism so that it functions properly. (12-703) 3 . Re-install plumbing access door in west bedroom closet. (12- 303) 4 . If the storage closet that is under the stairs is used by the tenant, the exposed wood framing members must be covered with 1/2" sheetrock. (Uniform Fire Code) APARTMENT #2 1. Replace missing storm window on east rear bedroom and repair window hardware. (12-703) 2 . Replace missing window cranks on all windows. (12-703) 3 . Repair plumbing access door to fit opening. (12-704) 4 . Provide outlet covers for all electrical wall outlets. (12- 504) 5 . Under stair storage--- Same as #4 for apartment 1. (Uniform Fire Code) 6. Replace torn toilet seat in bathroom. (12-403) 7 . Install security plate on rear door. (12-703) 8 . Weatherseal wall air conditioning unit. (12-704) APARTMENT #3 1 . Repair leaking faucet in kitchen. (12-402) 2 . Replace missing hardware on window in west bedroom. (12-703) APARTMENT #4 1. Replace outlet cover in kitchen. (12-504) June 16, 1992 July 15, 1992 Selwin Ortega 1404 Dowling Avenue North Mpls. , MN. 55412 cc: Housing File 610 53rd Avenue North FIRST 1. Repair west garage window. 2 . Remove rubbish in trash enclosure. 3 . Repair storm door on west side entrance. 4 . Clean up grounds of miscellaneous junk and debris. June 15, 1993 June 21, 1993 Selwin Ortega 1404 Dowling Avenue North Mpls. , MN. 55412 cc: Housing File 610 53rd Avenue North FIRST 1. Remove mattresses, garbage, trash and miscellaneous junk from around and behind garage. 12-304 , 12-305 2 . Repair gate for garbage can screening. 12- June 22 , 1993 June 25, 1993 Selwin Ortega 1404 Dowling Avenue North Mpls. , MN. 55412 cc: Housing File 610 53rd Avenue North FINAL 1. Remove mattresses, garbage, trash and miscellaneous junk from around and behind garage. 12-304 , 12-305 2 . Repair gate for garbage can screening. 12- FAILURE TO COMPLY WILL RESULT IN A CITATION WITH FINES OF UP TO $700. 00 . October 18 , 1993 . October 22 , 1993 Selwin Ortega 1404 Dowling Avenue North Mpls. , MN. 55412 cc: Housing File 610 53rd Avenue North FIRST 1. Remove mattresses, garbage, trash and miscellaneous junk from around building and behind garage. 12-304, 12-305 2 . Remove loose shingles and bricks from garage roof. 12-317 3 . Cut grass and keep gate closed to garbage area. 12-317 4 . Scrape and paint trim on garage. 12-707 FAILURE TO COMPLY WILL RESULT IN A CITATION WITH FINES OF UP TO $700. 00 . December 2 , 19931 1993 December 8 , 1993 Selwin Ortega 1404 Dowling Avenue North Mpls. , MN. 55412 cc: Housing File 610 53rd Avenue North Final 1. Remove mattresses,tires, dresser, trash and miscellaneous junk around building and garage. 12-304 , 12-305 2 . All garbage must be in cans with tight fitting lids. 12-304 3 . Repair all broken storm windows. 12-703 4 . Two water heaters have been replaced without permits. Have a state licensed plumber apply for a permit and make the necessary corrections. 12-709 5 . Secure cover for older water heater. 12-709 6 . As it has become necessary for the City to spend an inordinate amount of time at this address answering complaints, there will be no more warnings issued for non compliance of the Building Maintenance Code. Citations will be issued automatically to the owner upon verification of any legitimate complaints. February 14 , 1994 February 18, 1994 Selwin Ortega 1404 Dowling Avenue North Mpls. , MN. 55412 cc: Housing File 610 53rd Avenue North Final 1. Trash containers must be properly screened. put them inside screened area. 12-306 i i March 21, 1994 March 28 , 1994 Selwin Ortega 1404 Dowling Avenue North Mpls. , MN. 55412 cc: Housing File 610 53rd Avenue North Final 1. Remove car parts, couches, and trash from behind garages and over entire grounds. 12-304 2 . All vehicles must be licensed and operable and parked on an approved surface. 19-103 (14) , 19-1303 , 19-1304 . 3 . Clean out garages of miscellaneous junk. 12-306 4 . Recharge fire extinguisher in common area and replace missing fire extinguisher downstairs. 12-709 If above items are not met a citation will be issued. i I I March 21, 1994 April 8 , 1994 Selwin Ortega 1404 Dowling Avenue North Mpls. , MN. 55412 cc: Housing File 610 53rd Avenue North First Common Areas 1. Post new license. 12-907 2 . Connect dryer venting to dryer. 12-302 3 . Mount 220 volt outlet properly, not on floor. 12-504 4 . Repair laundry tub shut off handles. 12-302 5. Replace gas valves on the two newer water heaters. Permit required. 12-709 6. Repair venting on the newer water heater and the "Sears" water heater that do not have a 'y' connection. Permit required 12- 709 . 7 . Install combustion air vent in boiler room. 12-601 All Apartments 1. Smoke detectors must be hard wired. 5-204 , 12-709 2 . All operable windows must have screens. 12-703 3 . All windows that do not have double pane glass must have storm windows. 12-703 Apartment #1 1. Replace missing outlet cover by front window. 12-504 i2 . Repair left front burner on stove. 12-402-3 3 . Repair hole in wall by rear exit. 12-704 Apartment #2 1. Repair dead bolt lock. 12-408 2 . Repair hole in wall by living room windows. 12-704 3 . Replace missing window cranks for windows in living room and kitchen. 12-703 4 . Replace cracked outlet cover by kitchen window. 12-504 5. Repair stove door. 12-402-3 6 . Repair wall left of stove. 12-704 7. Replace missing knobs for cabinets. 12-402-2 8 . Replace broken outlet by window in left bedroom. 12-504 9 . Install closet doors. 12-709 10. Install bathroom light fixture. 12-504 11. Replace broken switch cover for bathroom light. 12-504 12 . Replace missing overflow drain cover for tub. 12-709 Apartment #3 1. Repair oven and burners. 12-402-3 2 . Replace missing cabinet knobs (3) . 12-402-3 3 . Repair glass in bathroom window. 12-703 4 . Repair bathroom sink faucet. 12-404 5. Remove mold from bathroom ceiling. 12-704 6. Install and properly wire fixture for bathroom light. 12-504 7 . Remove mold form left bedroom wall and ceiling. 12-704 Apartment #4 1. Repair fire damaged cabinet above stove. 12-402-2 2 . Replace missing cabinet knobs in bathroom. 12-402-2 3 . Repair/replace floor in bathroom. 12-704 4 . Repair dripping faucet. 12-404 • 5 . Repair tub tiles by bath faucet. 12-405 Garage, right side 1. Install missing outlet cover. 12-504 Exterior lawn 1. seed bare patches and keep tidy. 12-317 , 12-711 • • April 13 , 1994 • April 22 , 1994 Selwin Ortega 1404 Dowling Avenue North Mpls. , MN. 55412 cc: Housing File 610 53rd Avenue North Final Common Areas 1. Post new license. 12-907 2 . Connect dryer venting to dryer. 12-302 3 . Mount 220 volt outlet properly, not on floor. 12-504 4 . Repair laundry tub shut off handles. 12-302 5. Replace gas valves on the two newer water heaters. Permit required. 12-709 6 . Repair venting on the newer water heater and the "Sears" water heater that do not have a 'y' connection. Permit required 12- 709 . 7 . Install combustion air vent in boiler room. 12-601 All Apartments 1. Smoke detectors must be hard wired. 5-204, 12-709 2 . All operable windows must have screens. 12-703 3 . All windows that do not have double pane glass must have storm windows. 12-703 Apartment #1 1. Replace missing outlet cover by front window. 12-504 2 . Repair left front burner on stove. 12-402-3 3 . Repair hole in wall by rear exit. 12-704 Apartment #2 1. Repair dead bolt lock. 12-408 2 . Repair hole in wall by living room windows. 12-704 3 . Replace missing window cranks for windows in living room and kitchen. 12-703 4 . Replace cracked outlet cover by kitchen window. 12-504 5 . Repair stove door. 12-402-3 6. Repair wall left of stove. 12-704 7 . Replace missing knobs for cabinets. 12-402-2 8 . Replace broken outlet by window in left bedroom. 12-504 9 . Install closet doors. 12-709 10. Install bathroom light fixture. 12-504 11. Replace broken switch cover for bathroom light. 12-504 12 . Replace missing overflow drain cover for tub. 12-709 Apartment #3 1. Repair oven and burners. 12-402-3 2 . Replace missing cabinet knobs (3) . 12-402-3 3 . Repair glass in bathroom window. 12-703 4 . Repair bathroom sink faucet. 12-404 5 . Remove mold from bathroom ceiling. 12-704 6 . Install and properly wire fixture for bathroom light. 12-504 7 . Remove mold form left bedroom wall and ceiling. 12-704 Apartment #4 1. Repair fire damaged cabinet above stove. 12-402-2 2 . Replace missing cabinet knobs in bathroom. 12-402-2 3 . Repair/replace floor in bathroom. 12-704 4 . Repair dripping faucet. 12-404 . 5. Repair tub tiles by bath faucet. 12-405 Garage, right side 1. Install missing outlet cover. 12-504 2 . Access must be allowed on left side upon re-inspection. 12-707 Exterior lawn 1. Seed bare patches and keep tidy. 12-317 , 12-711 2 . Patch driveway and hole next to driveway. 12-316 Failure to respond will result in the issuance of a citation • May 3 , 1994 • May 13 , 1994 Selwin Ortega 1404 Dowling Avenue North Mpls. , MN. 55412 cc: Housing File 610 53rd Avenue North Final Common Areas 1. Post new license. 12-907 2 . Replace gas valves on the two newer water heaters. Permit required. 12-709 3 . Repair venting on the newer water heater and the "Sears" water heater that do not have a 'y' connection. Permit required 12- 709 . 4 . Properly secure combustion air vent in boiler room. 12-601 All Apartments 1. Smoke detectors must be hard wired outside of sleeping rooms. 5-204, 12-709 Apartment #2 1. Install stove. 12-402-3 2 . Repair wall left of stove. 12-704 Apartment #3 1. Repair oven and burners. 12-402-3 3 . Repair bathroom window. Does not open. 12-703 Apartment #4 1. Repair fire damaged cabinet above stove. 12-402-2 2 . Repair/replace floor in bathroom. 12-704 3 . Repair tub tiles by bath faucet. 12-405 Garage 1. Install missing outlet cover right side garage. 12-504 2 . Left side Must be cleaned up of all garbage, mattresses and other miscellaneous junk. 12-707 3 . Remove garbage, beds car parts from behind garages and grounds. 12-304 4 . Keep garbage can area free of debris and miscellaneous junk. Exterior lawn 1. Seed bare patches and keep tidy. 12-317, 12-711 2 . Patch driveway and hole next to driveway. 12-316 3 . All vehicles must be licensed and. operable and parked on an approved surface 19-103 (14) , 19-1303 , 19-1304 Failure to correct all items will result in the issuance of a citation. • September 29 , 1994 August 15, 1990SEE ORDERS Selwin Ortega 1404 Dowling Avenue North Mpls. , MN. 55412 cc: Housing File 610 53rd Avenue North Final REMOVE BY OCTOBER 1, 1994 1. Remove battery in front of garage. 2 . Remove gallon of oil on north side of building. 3 . Remove all garbage on ground around garbage containers. 4 . Remove all inoperable vehicles or vehicles being used for storage. OBTAIN CONTAINER BY OCTOBER 7, 1994 5. Keeping all the garbage in the containers has been an on going violation at this property to prevent this from happening you may be required to install a box type dumpster. Sec. 7-102 The owner of any premises, and any other person having refuse as herein defined, must provide and keep on such premises sufficient containers for the storage of refuse accumulated on the premises between disposal or collection. Each container must be watertight, must have a tight fitting lid, must be impervious to insects, rodents, vermin, and absorption of moisture and may not exceed 30 gallons in size unless otherwise specifically authorized in writing by the health authority. All commercial, business, industrial, or other such establishments having a refuse volume in excess of two cubic yards per week, and all six-family and larger dwellings, must provide approved bulk or box type refuse storage containers or approved equivalent. The containers must be located so as to be accessible to collection equipment and so as not to require an intermediate transfer. January 25, 1995 February 8, 1995 SEE ORDERS Selwin Ortega 1404 Dowling Avenue North Mpls. , MN. 55412 cc: Housing File 610 53rd Avenue North Final LIFE SAFETY COMPLY IMMEDIATELY 1. (12-504) Replace all missing switch plate covers and outlet covers in hallway and laundry room. 2 . (12-709) Recharge fire extinguishers in common area. COMPLY BY FEBRUARY 8, 1995 1. (1.2-304) (12-305) (12-306) Remove couch, tires, and bed spring from yard. 2 . (12-304) (12-305) (12-306) Remove all garbage on g ground around garage, vehicles, dwelling, and garbage container. 3 . (19-103 (14) ) (19-1303) (19-1304) Remove all inoperable vehicles. 4 . (12-813) Screen dumpster and keep all garbage within dumpster. li 12-713 Requires that all outside trash deposal facilities and recycling containers must be screened from view by opaque fence or wall high enough to completely screen the containers. Sec. 7-102 '-The owner of any premises, and any other person p having refuse as herein defined, must provide and keep on such premises sufficient containers for the storage of refuse accumulated on the premises between disposal o p r collection. Each container must u t be watertight, must have a tight fitting lid, must be impervious to insects, rodents, vermin, and absorption of moisture and may not exceed 30 gallons in size unless otherwise specifically authorized in writing by the health authority. All commercial, business, industrial, or other such establishments having a refuse volume in excess of two cubic yards per week, and all six-family and larger dwellings, must provide approved bulk or box type refuse storage containers or approved equivalent. The containers must be located so as to be accessible to collection equipment and so as not to require an intermediate transfer. 5 . (12-312) Clean common area. 6. (12-704) Replace all broken tile on laundry room floor. 7 . (12-704) Secure carpet at entry to laundry room. 8 . (12-312) Remove graffiti from all walls and doors. 9 . (12-709) Repair mail boxes . 10 . (12-703) Adjust door closer on laundry room door so it closes and latches. 11. (12-703) Replace all cracked, broken or missing windows on garage and dwelling. • 12 . (12-314) Remove all snow and ice from sidewalks and parking area. 13 . Remove vehicle parked on grass in front yard setback. . All vehicles must be licensed and operable and parked on an approved surface 19-103 (14) , 19-1303 , 19-1304 . CITY OF BROOKLYN CENTER PLANNING AND INSPECTION DEPARTMENT PHONE (612) 569-3344 FAX (612) 569-3494 NOTICE TO: Selwin and Odelia Ortega 1404 Dowling Ave N Minneapolis, MN 55412 cc: William Clelland, City Prosecutor cc: Tenants LOCATION: 610 53rd Street North COMPLIANCE OFFICIAL: Janine Atchison Due to the numerous neighborhood complaints received by the City of Brooklyn Center regarding the property at 610 53rd Street North, an inspection of each individual unit and common areas will be conducted on May 19, 1995, beginning at 9:00 a.m. Please notify your tenants or make arrangements so that the inspector will have access to each apartment. • If you have any questions or comments, please contact me at 569-3344 Monday through Friday, between 8:00 a.m. and nd 4:30 p.m. i i CARSON AND CLEL12"AN-D ATTORNEYS AT LAW 6300 SHINGLE CREEK PARKWAY. SUITE 305 JEFFREY A. CARSON MINNEAPOLIS, MINNESOTA SS430-2190 TELEPHONE WILLIAM G. CLELLAND (612) 561.2800 STEVEN C. HEY ELLEN M. SCHREDER FAX (612) 561-1943 16 August 1994 Mr. Dave Fisher, Inspections Department City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Re: Selwin Salvador Ortega-Romero Brooklyn Center Case File No. 94-07566 Dear Dave: Ortega-Romero entered a plea of guilty to the misdemeanor offense of failing to comply with Brooklyn Center Housing Maintenance Ordinances. He was given a stay of imposition of sentence which means that the Court did not sentence him at the time, placing him on probation, the terms of which were that he . was required to pay $100.00 in prosecution costs, achieve compliance with the remaining compliance orders, namely repair or replacement of one of the ovens, and no new uncorrected violations in the next year. By "uncorrected" violation, I mean the circumstance where he receives a notice to comply and he does not comply or adequately address that compliance order within the time allowed. I have structured this plea negotiation based on your representations that he has cleaned up the property to P P Y Y our satisfaction. I know that an issue regarding the water heaters exists but since there is no way for you to tell if they are new or merely have jackets, and since you do not consider them to be a hazard, I felt that I really could not deal with this as a violation. If Ortega-Romero successfully completes his probation, he will not serve any time in jail nor pay a fine. If he violates his probation, the Court can sentence him automatically to as much as a $700 . 00 fine and 90 days in jail. Ortega-Romero expressed concern about vandalism and what he perceives to be prosecution against him on the basis of race and further of failure of the City to extend services to him. He complains of vandalism and feels that the vandals, once apprehended, are not prosecuted and he feels that the City has Mr. Dave Fisher 16 August 1994 Page 2 not given him assistance when he attempts to resolve problems such as removal of junk or abandoned automobiles left by tenants. I assured him most emphatically that this prosecution had nothing to do with race and I cited he and his attorney to our continuing prosecution of Bennie Rozman. I assured him that he would have the same level of City service due any other owner of real property, that the City would work with him to help him remain law abiding and in compliance with City Ordinances. I have suggested that he contact Sgt. McComb to discuss these matters and to call me if he is still dissatisfied. I told him the he could contact you with respect to any assistance he needed by way of interpretation or application of Ordinance violations or other assistance so that he could remain law abiding. Please let me know if he does not remain in compliance. We are herewith enclosing and returning to you, your photographs with respect to this case. Thank you. Sincerely, CARSON AND CLELLAND William G. Clelland Brooklyn Center Prosecutor WGC: snt Enclosures cc Sgt. Stephen McComb Brad Hoffman r�t ?_ C1 rp, CHRSOH f;ND LL2LLhND P. CAASdN AND GL.ELL.,�.'vD ATTORNEYS AT LAW 6340 SHINGL5 CR66K PARKWAY, XUITt 303 WILLIAM G... CARSON MINN[APOLIZ, MINNESOTA 5 3430-2 1 90 WILLIAM 6, CLCLLAND TRLCPHONL SITEYCN C. Hey (613) 661-te00 ELLEN M. sCHAEnep FAX 1611} 1561-tg.43 2 February 1995 Mr. Selwin Ortega 1404 Dowling Avenue North VIA FACSIMILE Minneapolis, Minnesota 55412 RE : 610 53rd, Avenue North Dear Mr. Ortega: as The Brooklyn Center City Ordinances make you, as the owner, liable for the storage of junk motor vehicles and abandoned motor vehicles and you can be required to remove them. The Ordinances also make the occupant of the premises liable for removal. There is a provision in the ordinances for the city to remove abandoned motor vehicles in cases where a motor vehicle is left upon private Property for a period of more than 48 hours without th$ consent of the land owner. If it is true that your tenants have abandoned motor vehicles on your property it will be necessary for you to first advise the that tenants in writing that you object to the presence of the vehicle, YOU order them to remove it and that you will request the City of Brooklyn Center to tow the vehicle in the event it is not removed. A copy of that letter should be personally served upon each tenant and a copy should be given to me. If the abandoned or junk vehicle is not removed thereafter, with your consent, the City can remove the vehicle by impounding it. If you are willing to utilize this procedure, the City can work with you for the prosecution removal of these vehicles and you can avoid for this offense in the future. FEB 02 195 02: 1SPM CAPSON AND CLELLAND P.S Mr. Selwin Ortega 2 February 1995 Page 2 Please advise if you are prepared to undertake this responsibility. sincerely, CARSON AND CLELLAND iam G. Clc�l and WGC:alr cc: David Fisher (By Facsimile) • 0 BUILDI AI BUILDING MAINTENANCE COMPLIANCE ORDER June 23, 1995 REINSPECTION DATE: 11/07/1994 AM DONALD STEILE 620 53RD AVE N BROOKLYN CENTER MN 55430- LOCATION: 620 53rd Ave N FIRST NOTICE 10/05/1994 COMPLIANCE OFFICIAL: Janine Atchison The following violations of the Housing Maintenance and Occupancy Ordinance were cited during a recent inspection of the above premises. You are hereby informed that these violations must be corrected on or before the COMPLIANCE DATE indicated. Failure to correct violations or to make satisfactory arrangements to correct violations acceptable to the compliance official, may result in suspension or revocation of your rental dwelling license, if applicable. In addition, failure to comply may result in issuance of a citation which, upon conviction, 0 punishable by fine and/or imprisonment. _ � g Section 12 1_02 of the Ordinance r w ace provides for Right of Appeal, when it is alleged that a Compliance Order is based upon erroneous interpretation of this Ordinance. The Appeal must be submitted to the Inspection Department, in writing, specifying the grounds for Appeal, within five (5) business days after service of the order, and must be accompanied by a filing fee of$15.00 in cash or cashiers check. If you have any questions or comments, please contact me at (612)569-3344 Monday through Friday between 8:00 a.m. and 4:30 p.m. DESCRIPTION OF VIOLATIONS AND ORDINANCE SECTION 1. Hardwire smoke detectors in each apartment. UFC 5-204 Installation must be performed by a licensed electrician and a permit must be obtained. See attached sheet. 2. Repair exterior door bells. 12-709 3. Identify exterior doorbells in reference to 3-104 each apartment, ie. the doorbell for apartment #1 should be labeled 1. June 9, 1995 Mr. and Mrs. Selwin Ortega 1404 Dowling Avenue North Minneapolis, MN 55412 Dear Mr. and Mrs. Ortega: I have received your letter dated May 29, 1995, in which you have requested the opportunity to exercise your rights under our ordinance (Section 12-1202) to an appeal of a compliance order(s) before the City Council. I have scheduled your hearing for June 26, 1995, at 7:00 p.m. or as close to that time as the agenda will allow. As a follow-up to our conversation yesterday, I will contact the Minneapolis Housing Inspection Department to do a walk-through inspection as a check on Inspector Atchison's inspection. If the Minneapolis Housing Department is agreeable to do this, I will have them contact you directly to schedule their inspection. If you have any questions or concerns, please feel free to contact me. Sincerely, Brad Hoffman Community Development Director CITY OF BROOKLYN CENTER BH:rd cc: Richard Cabrera, Esq. MEMORANDUM TO: Brad Hoffman FROM: Janine Atchison i ^ DATE: June 23, 1995 RE: 610 53rd Ave N Selwin Ortega, Owner I would like to respond to several statements made by Mr. Ortega in an appeal filed June 2, 1995. It is true that upon our instructions I made time in m schedule for a unit b unit p Y Y Y inspection of the property located at 610 53rd ave N. 1 posted a letter at Mr. Orte a s p p p Y p 9 house on May 18, 1995 informing him that I would be inspecting this property on May 19, 1995. The letter informed him that this inspection was a result of neighborhood complaints, received by our office, regarding his property. Mr. Ortega came to my office in the morning of May 19, 1995, requesting an extension of time for the inspection. I rescheduled the inspection for Tuesday, May 23, 1995. Mr. Ortega demanded to know, "What's wrong with my property?" I told him to look at the rubbish and garbage visible from the street, it looks like a sty. Mr. Ortega further inquired as to the nature of the complaints. As examples, I cited the placement of the garbage dumpster, filled to overflowing, in the middle of the dive-way and a blue van, missing one tire, up on a jack, parked on the front lawn. I further explained that both situations posed a serious heath and safety hazards for his tenants, as well as other residents of the neighborhood, and must be remedied immediately. On May 23, 1995, 1 inspected the building and grounds. After my inspection, Mr. Ortega wanted to know immediately about every violation. I explained to him that there was quite a few violations, some of which I'd need to research with the city ordinance, and that I would mail my findings to him, hopefully within one week. During our discussion I tried to impress the importance of not only bringing his building into compliance but maintaining it in a safe and sanitary manner in accordance with our city codes. I told Mr. Ortega that in consideration of his long history of non- compliance with the housing ordinance, I would be visiting 610 53rd Ave N on a weekly basis to document its condition. I felt it only fair to let Mr. Ortega know that if he is nwilli u ng or unable to maintain the property according to his rental license agreement, that we would actively pursue the revocation of his rental license. I did explain that every violation cited on the compliance order would have to be corrected. Mr. Ortega immediately demanded an extension of time to make repairs. Since the orders had not yet been written, no compliance date had been set. I told Mr. Ortega to wait until he received the orders before requesting an extension of time to make repairs. I further stated that life safety and health violations would have to be corrected immediately. On May 23, 1995, after viewing several unlicensed and/or inoperable vehicles and watercraft in the over-crowded parking lot at this property, I told Mr. Ortega that the city ordinance required that he, the owner, must provide adequate, delineated parking for the tenants in his building and that it is unlawful to have unlicensed and/or inoperable vehicles on the premises, including watercraft and trailers. I would also like to point out that in the compliance order dated May 26, 1995, Mr. Ortega was ordered to replace 3 doors in the building not 8 as stated in his appeal document. The original fire doors of the laundry room and front door of apartment #3 have been replaced at some time with hollow core interior doors which is a vioolation of city code. Hollow core interior doors do not have the 20 minute fire rating required for apartment entry.doors and would allow any fire to spread quickly throughout the building. The front door of apartment #2 has a hole cut into it for a mail slot compromising the required 20 minute fire rating. This situation poses a serious safety hazard for any occupants of the building in the event of a fire. Finally, I would like to say, that I have been fair and consistent, following codes in dealing with Mr. Ortega's property.dealings with Mr. Ortega. I have not treated him differently than other landlords. In the past I have not backed down from pursuing ordinance compliance at other distressed properties, because I firmly believe that all tenants deserve safe, decent and sanitary housing regardless of their age, sex, sexual preference, race, color, religion, and marital staus. Compliance Orders Issued By Planning and Inspections Department ADDRESS: 610 53rd Ave N Date of Order Reason for Inspection and Subsequent Compliance Order Sept. 17, 1990 Rental License Inpection Oct. 18, 1995 Second Notice Nov. 5, 1995 Third Notice Jan. 16, 1991 Complaint Feb. 7, 1995 Second Notice July 22, 1991 Complaint Aug. 22, 1991 Second Notice (Final) Sept. 10, 1991 Citation Issued for Non-compliance Mar. 4, 1992 Rental License June 16, 1992 Final Notice June 15, 1993 Complaint June 22, 1993 Second Notice (Final) Oct. 18, 1993 Complaint Dec. 2, 1993 Final Notice Feb. 14, 1994 Complaint Mar. 21, 1994 Complaint Mar. 30, 1994 Citation for Non-compliance Mar. 21, 1994 Rental License Apr. 13, 1994 Final Notice May 3, 1994 Third and Final Notice May 17, 1994 Request for Citation Sept. 29, 1994 Complaint Oct. 17, 1994 Complaint Jan. 25, 1994 Complaint May 26, 1995 Complaint Council Meeting Date 6/26/95 Q City of Brooklyn Center Agenda Item Number U Request For Council Consideration Item Description: RESOLUTION ACCEPTING BID AND AWARDING CONTRACT,IMPROVEMENT PROJECT NO. 1995-11, CONTRACT 1995-E, CORRUGATED METAL PIPE SANITARY SEWER TRUNK RELINING Department Approval: Scott A. Brink, City En eer Manager's Review/Recommendation: No comments to supplement this report Comments below/attached Recommended City Council Action: A resolution which awards a contract to Insituform Central, Inc. in the amount of $788,791.20 is attached for consideration. Summary Explanation: (supporting documentation attached No ) Bids for contract 1995-E were received on June 15, 1995. This contract consists of the relining of approximately 6000 feet of corrugated trunk sanitary sewer that is in need of replacement. The Council previously established this project on April 10, 1995 and authorized the advertisement for bids on April 24, 1995. The bidding results are as follows: Bidder Bid Amount Lametti and Sons, Inc. $744,268.00 Insituform Central, Inc. $788,791.20 Spiniello Limited, Inc. $1,154,002.00 The previously established Engineer's Estimate for the construction cost of this project was $1,078,000.00. I It is recommended that the City Council award a contract in the amount of $788,791.20 to Insituform Central, Inc. The primary reasons for not recommending an award to the lowest bidder are as follows: • 1. The low bidder (Lametti and Sons, Inc.) has never successfully performed a project of this nature. This is in violation of requirements provided for in the Contract Specifications. 2. The product proposed for installation by the low bidder does not meet the material requirements of the Contract Specifications. Request For Council Consideration Page 2 The Contract Documents specifically require that the Contractor must provide at least 3 references • of past successful installations. The Documents further emphasize this requirement by stating the following: "Failure on the part of any Bidder to carry out previous contracts satisfactorily, or his lack of experience or equipment necessary for the satisfactory and timely completion of the Project, may be deemed sufficient cause for disqualification of said Bidder."' The low bidder has never performed a project of this specific and unique nature. The product to be provided by their subcontractor (Superliner) has been previously installed, and all references provided for this product are from installations in the New York City area by others. Staff has attempted to contact these references, but as of this writing, we have not been able to reach the appropriate people. In addition, the references provided do not state weather the product has ever been installed in corrugated metal pipes, or the same conditions which is a requirement of the City's specification. As previously stated, the product submitted by the low bidder does not meet the material specifications as required in the Contract Documents which state: "Should a Bidder propose to substitute materials other than those specified herein, said materials must be found acceptable and approved by the City Engineer, in writing, seven (7) calendar days prior to the opening of bids. Otherwise, it is understood that the Bidder shall furnish materials exactly as specified. " Among the violations of the material specifications are the following: A. The fiberglass material submitted is not specified and its reliability to us is unknown. As • stated in the Specifications, any changes to the materials specified must be approved by the City Engineer at least 7 days prior to the opening of the bids. B. The Specifications also require a plastic coated liner for the interior of the finished pipe. The material submitted by the low bidder also differs from this requirement. C. The specifications require a fifty year guarantee on the product. This has not been provided by the low bidder. D. Specifications provided by the low bidder do not reference or clearly demonstrate compliance with specification ASTM F1216. ASTM F1216 is a nationally recognized standard that provides the technical basis for the City's specification. The Specifications also state that the lining tube must be installed by inversion (i.e.by hydrostatic or air pressure), rather than pulling the liner in as proposed. Pulling the liner in is only allowed if the other provisions of the specification are met. Test reports performed by an independent agency have suggested that the short term and long term durability of the product submitted (Superliner) is questionable. This was not the case for the Insituform or Spiniello products. The remaining bidders, Insituform and Spiniello, both have demonstrated the experience and qualifications required in accordance with the Specifications. We would therefore recommend awarding a contract to the next lowest responsible bidder, Insituform Central, Inc. • In addition, Insituform Central, Inc. is recommended for award for the following additional reasons: 1. Insituform has a proven track record for these types of projects; not only in the City of Brooklyn Center but for numerous communities in Minnesota as well. Their product meets all specification requirements and installation is performed by their own experienced crews. Past experience and references have indicated that Insituform has provided a quality product and service. Request For Council Consideration Page 3 2. This particular project provides for the lining of corrugated metal sewer pipe (cmp), which is unique and significantly different than lining other conventional types of sewer pipe. Insituform • has successfully installed their product on this type of pipe for the cities of Fridley and Brooklyn Center. As of this writing, staff has been unable to obtain any indication (or received any references) that any other Contractor anywhere has successfully completed a project with the required product under these same conditions. This is an extremely important factor to consider when awarding a contract for work of this unique nature. The sewer line to be rehabilitated serves over one third of the City and any mistakes or delays incurred during the installation would very likely induce major inconveniences and hardships for a very large proportion of residents and businesses in the City. It is therefore strongly recommended that a Contractor with proven experience for work of this nature be awarded a contract. We therefore recommend that a contract be awarded to Insituform Central, Inc. in the amount of $788,791.20. • Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ACCEPTING BID AND AWARDING CONTRACT, IMPROVEMENT PROJECT NO. 1995-11, CONTRACT 1995-E, CORRUGATED METAL PIPE SANITARY SEWER TRUNK RELINING WHEREAS, pursuant to Resolution 95-110, the following bids were received and opened on June 15, 1995, for Improvement Project No. 1995-11, Contract 1995-E, Corrugated Metal Pipe Sanitary Trunk Relining; and Bidders Bid Amount Lametti and Sons, Inc. $744,268.00 Insituform Central, Inc. $788,791.20 Spiniello Limited, Inc. $1,154,002.00 WHEREAS, it is the opinion of the City Council that the best interests of the City of Brooklyn Center will be served by rejecting the low bid of Lametti and Sons, Inc. on the basis of the bid failing to meet the requirements of the Contract Specifications; and WHEREAS, it appears that the second low bid submitted by Insituform Central, Inc. does meet the requirements of the Contract Specifications. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that: 1. The bid of Lametti and Sons, Inc. is rejected on the basis of their bid failing to meet the requirements of the contract specifications. 2. The Mayor and City Manager are hereby authorized and directed to enter into a contract in the amount of$788,791.20 with Insituform Central, Inc., in the name of the City of Brooklyn Center, for furnishing corrugated metal pipe sanitary sewer trunk relining,Improvement Project No. 1995-11 according to the plans and specifications therefor approved by the City Council and on file in the office of the Deputy City Clerk. 3. The Deputy City Clerk is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposit of the successful bidder and the next lowest bidder shall be retained until a contract has been signed. 4. All costs for Improvement Project No. 1995-11 shall be financed by the Sanitary Sewer Utility. RESOLUTION NO. Date Mayor ATTEST: Deputy 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. Council Meeting Date 626/95 Q �/ City of Brooklyn Center Agenda Item Number o /7 Request For Council Consideration • Item Description: Woodbine Neighborhood Improvement Project: Staff Report Re: Issues at 71st and Kyle Avenues Department Approval: Diane Spector, Director of is Services Manager's Review/Recommendation: No comments to supplement this report Comments below/attached Recommended City Council Action: Review information presented and select an option. If an option other than Option 1 is selected, direct staff to negotiate a change order to contract 1995-B. Summary Explanation: (supporting documentation attached Yes • The City Council at its June 12, 1995 meeting directed staff to investigate options for the intersection of 71st Avenue and the south leg of Kyle Avenue, a "V" intersection, and to provide further information on costs, complaints received, etc. OPTIONS Five options have been prepared: • Option 1 is the design as approved by the Council earlier this year and as included in the contract specifications, that is, the construction of a traffic "kidney bean" and the replacement of the stub of Kyle Avenue with a private drive. • Option 2 is to simply replace the roadway in its current configuration. • Option 3 is a version of the kidney bean, with Kyle Avenue reconstructed as a street rather than a driveway. • Option 4a would remove the V but would replace Kyle Avenue with a driveway. • Option 4b would remove the V but would reconstruct Kyle Avenue as a public street. COSTS ® The following are the total costs associated with each of these options. Because the last four options would be change orders from the current contract, I have also shown the additional engineering time necesary to redesign the roadway, utilities, and drainage and to draw new plans, and the additional field work to stake out the new design. Request For Council Consideration Page 2 Estimated Cost of Roadway • 71st Avenue, Kyle to Lee Avenues, And Kyle Avenue South of 71st OPTION ROADWAY RIGHT OF WAY ENGINEERING TOTAL 1 $27,995 $5,660 $33,655 2 25,923 $390 26,313 3 29,578 4,760 390 34,728 4a 27,290 5,660 390 33,340 4b 28,175 4,760 390 33,325 :J NEIGHBORHOOD COMMENTS A letter explaining the five options was sent to 20 property owners on 71st, from June to Major. These are the property owners who would most likely be impacted by the redesign of this intersection. We asked these property owners their design preference, and what comments they had. Copies of their responses are attached to this item; the following table summarizes responses: NUMBER • OPTION PREFERRING OPTION 1 0 2 3 3 0 4a 1 4b 2 No Response 12 Other* 3or1 1 5 or 2 1 TOTAL 20 *Listed in preferred order. Option 5 refers to a design submitted by property owner. COMPLAINTS • I reviewed the proceedings of the Administrative Traffic Commitee (ATC) for the past several years. One complaint which involved a request for signage or other traffic control measures was found; the notes of that meeting reflect comments made by the committee that they were aware of this situation, and that other, informal complaints had been made in the past. The formal complaint was filed by Vicki McFarren, one of the property owners at 4413 - 71st, the home that would get the long driveway under some of the options. Her request was for "Children at Play" signs and speed bumps on 71st at the V, saying that traffic takes the curve too fast. 'W ' 7100 LEE AVE 44067 IST AVE 7101 KYLE AVE c o Q \ _ Q 71ST AVE i y % � r 1 .. 4413 71ST AVE 4407 71ST AVE ♦ �L i C m law BITUMINOUS " "AC DRIVEWAY /Tu,ev ,q�roc�,uc OP11711) / 7100 LEE AVE 4406 71ST AVE 7101 KYLE AVE L Q W 1 ¢ Q 71ST AVE 4413 71ST AVE / 4407 71ST AVE 9G OL BITUMINOUS; DRIVEWAY / &P77,)XJ Z ��7auSi�GYT`ti�1 S (..� i vV LGC NVC ' 4406 71ST AVE 7101 KYLE AVE 1 s. \ 71ST AVE / 4 4413 71ST AVE 407 71ST AVE BITUMINOUS� q DRIVEWAY Zl?y vl 47,31,x-1 Sri T 7100 LEE AVE !� 7 � 4406 71ST AVE 101 KYLE AVE _ 71ST AVE 4407 71ST AVE 4413 71ST AVE 'r 1 BITUMINOUS DRIVEWAY /�T/G 7100 LEE AVE ' 4406 71ST AVE 7101 KYLE AVE 3 o Q SS2 U 4413 71ST AVE F / 4407 71ST AVE s BITUMINOUS r DRIVEWAY Y / i 17701' RESPONSE FORM June 16, 1995 71st and Kyle Avenue V Intersection Design The City Council is reconsidering the design for the reconstruction of the intersection of 71st Avenue and the south leg of Kyle Avenue North, a V intersection. Please use this form to indicate which design option you prefer, and to make comments. Thank you for your time and attention. Diane Spector Preferred Option: Check One OPTION 1: Straighten out the V, construct a traffic island shaped like a kidney bean, replace the stub of Kyle Avenue with a private driveway OPTION 2: Replace the roadway as it currently is, that is with the V and with Kyle Avenue as a public street OPTION 3: Straighten out the V, construct a traffic kidney bean, replace Kyle Avenue with a public street OPTION 4a: Straighten out the V, replace Kyle Avenue with a private driveway OPTION 4b: Straighten out the V replace Kyle Avenue with a g � P Y public street Comments: Name and Address: Please return this response form by Wednesday, June 21 to: Engineering Division Or call 569-3340 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 CITY OF BROOKLYN CENTER File # 93-010 ADMINISTRATIVE TRAFFIC COMMITTEE Follow Up TRAFFIC COMPLAINT/REQUEST FORM Requested By: Vicki McFarren Date: June 15, 1993 Address 4413 - 71st Ave. N. Location: 4413 - 71st Ave. N. Brooklyn center, MN 55429 Tele. 561-2339 What is the complaint? ® Speeding traffic (Time of day/day of week ) ❑ Sight obstruction ( NE, NW, SE, SW, Other ) ❑ Need traffic control ❑ Other What solution(s) would best address your concerns? (Check one or more) ❑ Additional radar/speed enforcement ❑ Tree/brush trimming ❑ Stop sign (Stopping traffic on Street Name Other sign ( Children at p l av on 71st Ave- N. ) Type of sign Street Name ® Other Spded Bumps before curve near 4413 71st Ave. N. - Traffic takes the curve too fast_ and there is a lot of kids in neighborhood. cc: Complainant, City Manager, Chief of Police, ATC Coordinator STEP 1 Notice 6/28/93 STEP 2 Referrals STEP 3 Review By ATC get radar, accident history - Itr. sent 7/26/93. Sm-A21 radar k �Pt ,,.,ma -ko� - ��%r ail Tabled until next meeting 9/28/93 Denv speed humps, radar o.k. , table for now, revisit when property to south is redeveloped. STEP Notice 2/8/94 (12/12/93) STEP 5 Appeals 4FEP 6 Follow Up STEP 7 Final Action CITY 6301 SHINGLE CREEK PARKWAY OF BROOKLYN CENTER, MINNESOTA 55430 B ROOKLYN TELEPHONE: 569-3300 CENTER FAX: 569-3494 EMERGENCY - POLICE - FIRE February 9, 1994 911 Ms. Vicki McFarren 4413 71st Ave. N. Brooklyn Center, MN 55429 Dear Ms. McFarren: The City's Administrative Traffic Committee, consisting of city manager, director of public works, chief of police, and public works coordinator, has met to review your request for speed bumps or other type signage at the curve near 4413 71st Avenue North. The Committee reviewed the enclosed radar results and agreed that there seemed to be no speeding problems during the time the radar was taken. If you are aware of any vehicle or vehicles which routinely speed on your street, I encourage you to contact the police department. Provide them, if possible, with a description of the vehicle or vehicles and the time of day where there seems to be a problem. The police department will then increase enforcement during that time. The Committee agreed that speed humps are not appropriate for this location because of the curves in the road. Various alternatives were discussed, and the Committee has decided to put your request on hold until the Engineering Department can evaluate future redesigning 71st Avenue. I will notify you of the Committee's recommendation. In the meantime, if you have any questions feel free to call me at 569-3340. Sincerely, D e Spector Public Works Coordinator Enclosure sesu!,u�acs�v � Stuart Trailer Radar Survey . _ _ . . ... . . .. .... :.::::.::.:::.::...::::::.::......... .. O . ►ASSA ... : . . V..lw.T == C : .:::...: = .. ..;L1M�T. I ~ Eckberb Dr./West of France 06/29/93 T 1034 - 1324 42 30 32 30 30 30 23 to 33 30 59 Ave. N./Xerxes to Brooklyn Blvd. 08/06/93 F 0952 - 1310 163 12 32 22.3 22 26 18 to 28 Westbound 30 60 Ave. N./East of Brooklyn Blvd. 08/07/93 Sa 1005 - 1457 76 15 33 21.4 21 26 17 to 27 Westbound 30 60 Avc. N. &,Franmd y,':, t, 08/17/93 T 0933 - 1630 40 15 28 21.5 22 25 16 to 26 30 4413 -71 Ave. N. 08/18/93 W 1603 - 1604 67 15 31 23.1 23 28 20 to 30 30 Unity&72 Ave. N. 08/19/93 TH 0959- 1639 281 13 46 23.8 23 28 19 to 29 25 CITY OF BROOKLYN CENTER TRAFFIC ENGINEERING EVALUATION ACCIDENT SUMMARY Intersection: �1 S� j� d K//� �5 , I I No. of ! No. of I I I I Total I Property I Personal I No. of I I No. of I Damage I Injury I Fatal I I Year I Accidents I Accidents ( Accidents I Accidents I I I / 993 i l 9'9Z i o I I I I ! I I I 0 I I I I ! I TOTAL I Average for I I ! 3 Years I I I Average for I I I I Ilast 2 Years i I I I I I I Notes: - - " (Title) Date: 2 1 i�.( C13 Ci3 -pi Z} SURVEY RESULTS KR-11 STAT PACK LOCATION OPERATOR C�°' `�- DATE f� /� DAY OF wx �� TIME � O HOURS POSTED SPEED LIMIT MPH DIRECTION OF TRAVEL OF CARS SURVEYED: NB SB (Circle all appropriate) 1. TOTAL NUMBER OF VEHICLES 2.( 2. AVERAGE SPEED MPH 3. MEDIAN SPEED ,Z�-I. 7 MPH 4. 85TH % SPEED MPH 5. STANDARD DEVIATION MPH 6.* 20 25 ��` Percent of vehicles ' 30 LO 35 r above dialed 40 O 45 speed. 50 a 55 a 7.* Number of vehicles at dialed speed 2 MPH increments. 20 I l 1 (�, J 22 J ? 7 J 24 J J 26 28 15� 30 J---�-J 32 J 13 J 34 I_ J 36 I_�I 38 I �- 40 J d J 42 J O J 44 ( ( 46 J ) 48 J J 50 J J 52 1 0 J 54 ( d J 56 I d J 581�_I 60 I J 62 J d J 64 J J 66 J O i 68 J © J 70 J O J 72 i J 74 J d ( 76 1 4 ( 78 J_J WEATHER AND ROAD CONDITIONS: 6� *Must be dialed on middle and right thumbwheels. t3 —or c SURVEY RESULTS 0 KR-11 STAT PACK LOCATION OPERATOR ��� �' DATE / / DAY OF WK TIME '/` TO `� �a HOURS POSTED SPEED LIMIT /L MPH DIRECTION OF TRAVEL OF CARS SURVEYED: NB SB (Circle all appropriate) 1. TOTAL NUMBER OF VEHICLES 1 ' 2. AVERAGE SPEED - MPH 3. MEDIAN SPEED MPH 4. 85TH % SPEED ' / MPH 5. STANDARD DEVIATION J ' MPH 6.* 20 25 Percent of 0 vehicles 30 35 (:�K above dialed —� speed. 40 _ 45 _ 50 55 7.* Number of vehicles at dialed speed 2 MPH increments. 20 ( 22 �� � I 24 I I 26 I f I 28 � I 30 32 34 36 ( I 38 40I 42 44 46 II 48 I � 50 I 1j' I 52 —I 54 II 56 I 58 I � 60 62 I 64 ( Cr I 66 68 � ) 70 (��''_ 72 I 74 -- 76 _I 78 WEATHER AND ROAD CONDITIONS: *Must be dialed on middle and right thumbwheels. COMMENT CARD Name Address -71 Phone Gj3 Position, Agency or Group z. Comments � G i k i s CX MMENT CARD Name Address 7/UCHSL�� Phone Position, Agency or Group Comments -}- c�1 , 1. COMMENT CARD Name Address Phone position, Agency or Group Comments i 1 I i RESPONSE FORM June 16, 1995 71st and Kyle Avenue V Intersection Design 0 The City Council is reconsidering the design for the reconstruction of the intersection of 71st Avenue and the south leg of Kyle Avenue North, a V intersection. Please use this form to indicate which design option you prefer, and to make comments. Thank you for your time and attention. Diane Spector Preferred Option: Check One OPTION 1: Straighten out the V, construct a traffic island shaped like a kidney bean, replace the stub of Kyle Avenue with a private driveway OPTION 2: Replace the roadway as it currently is, that is with the V and with Kyle Avenue as a public street OPTION 3: Straighten out the V, construct a traffic kidney bean, replace Kyle Avenue with a public street OPTION 4a: Straighten out the V, replace Kyle Avenue with a private driveway OPTION 4b: Straighten out the V, replace Kyle Avenue with a public street Comments: G r main 1a1rrr Our h a w beer, a j,-0 r 1d, r� / 111Ci6Yl-4- (�,4 co r,5 rr o rr 6 r- ->lrc,'4 C4r7rd—U4u , , uroosP--a 0 d 44- v Gt h jq h 4pePcf, {.:�r� i rn �� �� n�� i� A,))Le c(on w,, uicu lal-,4;��,•, p(re7e&- �w r 0,-) 'rCh� Orr�i/li(� plGin. (( ' 1 1�CI! ` ,tom iC�fCr 67- r.5�rtj 0 -5 t� J Du< It he- cxcr Name and Address: r1 'his} Ate. N. Please return this response form by Wednesday, June 21 to: Engineering Division Or call 569-3340 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 C c. �� �2e�;YA 4 ,/Mc(CU RESPONSE FORM June 16, 1995 71st and Kyle Avenue V Intersection Design The City Council is reconsidering the design for the reconstruction of the intersection of 71st Avenue and the south leg of Kyle Avenue North, a V intersection. Please use this form to indicate which design option you prefer, and to make comments. Thank you for your time and attention. Diane Spector Preferred Option: Check One OPTION 1: Straighten out the V, construct a traffic island shaped like a kidney bean, replace the stub of Kyle Avenue with a private driveway OPTION 2: Replace the roadway as it currently is, that is with the V and with Kyle Avenue as a public street OPTION 3: Straighten out the V, construct a traffic kidney bean, replace Kyle Avenue with a public street OPTION 4a: Straighten out the V, replace Kyle Avenue with a private driveway OPTION 4b: Straighten out the V replace Kyle Avenue p y with a public street Comments:: �f n - U U U ti �. Name an J� d Address: �--- - Please return this response form by Wednesday, June 21 to: Engineering Division Or call 569-3340 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 RESPONSE FORM June 16, 1995 71st and Kyle Avenue V Intersection Design The City Council is reconsidering the design for the reconstruction of the intersection of 71st Avenue and the south leg of Kyle Avenue North, a V intersection. Please use this form to indicate which design option you prefer, and to make comments. Thank you for your time and attention. Diane Spector Preferred Option: Check One OPTION l: Straighten out the V, construct a traffic island shaped like a kidney bean, replace the stub of Kyle Avenue with a private driveway OPTION 2: Replace the roadway as it currently is, that is with the V and with Kyle Avenue as a public street OPTION 3: Straighten out the V, construct a traffic kidney bean, replace Kyle Avenue with a public street OPTION 4a: Straighten out the V, replace Kyle Avenue with a private driveway OPTION 4b Straighten out the V, replace Kyle Avenue with a public street Comments: 1 11A 71 Name and Address: 1 Please return this response form by Wednesday, June 21 to: Engineering Division Or call 569-3340 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 RESPONSE FORM June 16, 1995 71st and Kyle Avenue V Intersection Design The City Council is reconsidering the design for the reconstruction of the intersection of 71st Avenue and the south leg of Kyle Avenue North, a V intersection. Please use this form to indicate which design option you prefer, and to make comments. Thank you for your time and attention. Diane Spector Preferred Option: Check One OPTION l: Straighten out the V, construct a traffic island shaped - like a kidney bean, replace the stub of Kyle Avenue with a private driveway OPTION 2: Replace the roadway as it currently is, that is with the ',s V and with Kyle Avenue as a public street OPTION 3: Straighten out the V, construct a traffic kidney bean, replace Kyle Avenue with a public street OPTION 4a: Straighten out the V, replace Kyle Avenue with a private driveway OPTION 4b: Straighten out the V, replace Kyle Avenue with a public street Com/ments: n 7'71 j�1 ," •.-rte �- -\'�' j � ` / Name and Address: i''i (� C y —f ---1'�' /f Please retain this response form by Wednesday, June 21 to: Engineering Division Or call 569-3340 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 t _ 13 -7r-� J , .l�( 5 T 4 Avg 0 � c p S. t A-�, RESPONSE FORM June 16, 1995 71st and Kyle Avenue V Intersection Design The City Council is reconsidering the design for the reconstruction of the intersection of 71st Avenue and the south leg of Kyle Avenue North, a V intersection. Please use this form to indicate which design option you prefer, and to make comments. Thank you for your time and attention. Diane Spector Preferred Option: Check One OPTION l: Straighten out the V, construct a traffic island shaped like a kidney bean, replace the stub of Kyle Avenue with a private driveway OPTION 2: Replace the roadway as it currently is, that is with the OIL V and with Kyle Avenue as a public street OPTION 3: Straighten out the V, construct a traffic kidney bean, replace Kyle Avenue with a public street OPTION 4a: Straighten out the V, replace Kyle Avenue with a private driveway OPTION 4b: Straighten out the V, replace Kyle Avenue with a public street i:1-)17-P1 eol1c7� Comments: Name and Address: q�13 Please return this response form by Wednesday, June 21 to: Engineering Division Or call 569-3340 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 f - W 7100 LEE AVE \ 4406 71ST AVE 7101 KYLE AVE } I I L y \ m a 4413 71ST AVE ` / 4407 71ST AVE / o f BMW! US r DRIVEWAY j t 4 4� t Council Meeting Date June 26, 1995 3 City of Brooklyn Center Agenda Item Number Request For Council Consideration • Item Description: Selection of Cam Andre as Interim City Manager for the City of Brooklyn Center Department Approval: 4taliz Nancy Gohm , Assis t City Manager Manager's Review/Recommendation: 11-111 1 No comments to supplement this report Comments below/attached Recommended City Council Action: Approve Selection of Cam Andre as Interim City Manager for the City of Brooklyn Center Summary Explanation: (supporting documentation attached Yes SIt is my understanding that the City Council is in agreement to select Cam Andre as interim city manager for the City of Brooklyn Center as per attached contract. City Attorney Charlie LeFevere worked with Cam on the contract as directed by Council. I • Employment Agreement For Interim City Manager THIS AGREEMENT, made and entered into this day of June 1995 by and between the City of Brooklyn Center, State of Minnesota, a Minnesota municipal corporation ("Employer") and Camille D. Andre ("Employee"). WITNESSETH: WHEREAS, Employer desires to employ the service of Employee as interim City Manager of the City of Brooklyn Center for a period not to exceed six months while the City undertakes the selection of a permanent City Manager for the City; and WHEREAS, it is the desire of the City Council to provide certain benefits, to establish certain conditions of employment, and to set working conditions of the Employee. NOW, THEREFORE, in consideration of the mutual covenants contained in this agreement, Employer and Employee agree as follows: Section 1. Duties. Employer agrees to employ Employee as City Manager to perform the functions and duties specified in the Charter of the City and the City Code and to perform other legally permissible and proper duties and functions as the City Council of the City may from time-to-time assign to Employee. Section 2. Term. A. Employee's employment shall commence on 1995. B. Nothing in this agreement prevents, limits, or otherwise interferes with the right of the City Council of the City to terminate the services of Employee at any time, subject only to the provisions set forth in Section 3 of this Agreement. C. Nothing in this agreement prevents, limits, or otherwise interferes with the right of the Employee to resign at any time, subject only to the provisions of Section 3 of this agreement. D. Employee agrees to remain in the exclusive employ of the Employer and neither to accept other employment nor to become employed by any other employer during the term of his employment. The term "employed" is not construed to include occasional teaching, writing, consulting, or military reserve service performed on Employee's time off. - 1 - Section 3. Termination. A. Employee may be terminated by the City Council at any time, and for any reason in the absolute and sole discretion of the City Council, upon not less than five (5) days' written notice to Employee. B. This Agreement will terminate automatically without further action by either party, six months from the date of commencement of employment, unless earlier terminated pursuant to paragraph A or paragraph C of this Section. C. Employee may resign from his position at any time upon not less than thirty (30) days' advance notice to the City Council, unless such thirty (30) days' notice is waived by the Council. D. Upon termination, Employer will pay Employee salary through the effective date of termination. Employee will not be paid any other compensation including severance pay or payment for unused sick leave or vacation leave. Section 4. Salary. Employee's salary for the term of this Agreement shall be Seven Thousand Dollars ($7,000.00) per month. Section 5. Automobile. Employee shall be provided an automobile for Employee's 24-hour business use. In the event the Employee is not provided with such automobile, Employee shall receive additional compensation of $250 per month as an automobile allowance. Section 6. Vacation and Sick Leave. Employee shall be granted sick leave and holidays granted to other employees pursuant to Chapter 17 of the Brooklyn Center City Code. Employee shall be granted vacation leave which shall accrue at the rate of two (2) days for each month of full-time service. Section 7. Insurance Coverage. Employee shall not be provided with individual or family coverage of health, dental or life insurance. Section 8. Retirement. Employer will not make contributions on behalf of Employee to the Public Employees Retirement Association, or any other retirement fund. - 2 - Section 9. General Expenses. Employer recognizes that certain expenses of a non-personal and generally job-related nature will be incurred by Employee and agrees to reimburse or pay those general expenses in accordance with the normal and customary practices and procedures of the City. Section 10. Indemnification. Employer will defend, save harmless, and indemnify Employee against any tort, professional liability claim or demand, or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance duties as City Manager. Employer may compromise and settle any claim or suit and will pay the amount of any settlement or judgment rendered thereon. Nothing herein shall be deemed a waiver of the limitations on liability set forth in Minnesota Statutes Chapter 466. Section 11. Bonding. Employer will bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance. Section 12. Other terms and Conditions of Employment. The Council, in consultation with the Employee, may fix such other terms and conditions of employment as it may determine from time-to-time relating to the performance of Employee, provided those terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, the City Charter, the City Code, or any other law. Section 13. Notices. Notices pursuant to this Agreement are given by deposit in the custody of the United States Mail, postage paid, addressed as follows: A. Employer: Mayor City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430-2199 B. Employee: Camille D. Andre 10401 Cedar Lake Road Minnetonka, Minnesota 55305 Alternatively, notices required pursuant to this Agreement, may be personally served in the same manner as is applicable to process in a civil action. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice in the United States Mail. - 3 - Section 14. General Provisions. A. This Agreement constitutes the entire Agreement between the parties. B. This Agreement may be amended at any time by the mutual consent of Employer and Employee. IN WITNESS WHEREOF, the City of Brooklyn Center by its City Council has caused this Agreement to be executed and delivered on its behalf by its Mayor and by its Acting City Manager, and the Employee has executed this Agreement as of the day and year first above written. THE CITY OF BROOKLYN CENTER, MINNESOTA By Its Mayor By Its Acting City Manager EMPLOYEE Camille D. Andre - 4 - Council Meeting Date June 26, 1995 3 City of Brooklyn Center Agenda Item Number Request For Council Consideration Item Description: Discussion of Recruitment Process for City Manager Department Approval: cam+---- Nancy dohman, As istant City Manager Manager's Review/Recommendation: �-�-- No comments to supplement this report Comments below/attached Recommended City Council Action: Summary Explanation: (supporting documentation attached Yes ) • At the last regular Council meeting, we briefly discussed selection processes for city manager. As you remember, I distributed proposals from seven consulting firms with services in recruitment and selection of a city manager. The Council has several options regarding the selection process for city manager. 1. Select a consultant from proposals received to assist the Council in the search process. Comment: I recommend the Council select a consultant to assist in the facilitation of developing the job description,job qualifications, and to work with the Council on the interview and assessment process for city manager. The consultant will act as a facilitator for the Council ensurin g that the Council communicates clearly as to what the City's looking for in a city manager. The consultant also works with the candidates to find the best match for the city in hiring a new city manager. A consultant can also assist in negotiating the agreement with the city manager, and some search firms guarantee their search for one year. Even though you will need to expend money for hiring a consultant, I believe it is money well spent in ensuring that the Council has gone the extra length in a professional search to find the most qualified and best fit of a candidate for city manager for the City of Brooklyn Center. 2. Work with the interim city manager and staff to facilitate the hiring process for city manager. Comment: I have the ability to provide the basics and services for recruitment and search for a city manager. My concern lies in two areas: 1) facilitating open communication with the Council to ensure I am meeting your needs when recruiting for the position; 2) I cannot provide professional assessments, management tests, or simulations unless I contract with a firm for this — I would recommend we contract for at least a portion of this. The cost for doing the search internally results in the cost equivalent of staff time times the number of staff working in a group or committee to develop and follow through with the recruitment selection process as the Council approves. Request For Council Consideration Page 2 3. The final option would be to schedule a work session to discuss and brainstorm Council's ideas in the recruitment processes and selection of a city manager. This would give us additional time to • talk about the two options above, and also to discuss in more detail the proposals from the consultants which were distributed on June 12, 1995. This would also give the interim city manager some time to catch up with, and also understand, your concerns in regard to a selection process for city manager. All-in-all, it is up to Council on how you want to go about the replacement of the city manager. I will be available to answer your questions and discuss this matter with you, or provide additional materials as needed or requested. • • 6/12/95 N. Gohman Brief summary of selection consultants for City Manager in alphabetical order *Ralph Anderson &Assoc. Full scope = $13,500 & $5,000 to $6,000 for expenses $ 19,500 comments: Firm located in Dallas Texas Provides full array of service and testing in recruitment program Fixed fee of$13,500 Out of pocket expenses estimated at$5 to 6,000 Can confirm finalists within 90 days Guarantees search services for 1 year The Brimeyer Group Full scope= $12,500 & misc expenses $1,500-2,500 $ 15,000 comments: Firm located in Minneapolis metro area Provides a full array of service and testing in recruitment program Also offers a scaled down program similar to the League of MN and will negotiate such service Provides timeline in proposal, typical time from is from 90-120 days Offers 18 month guarantee David M Griffith &Assoc. Full scope = $11,500 &$5,500 out of pocket expenses $ 17,000 comments: Firm located in Carmichael California Provides a full array of service and testing in recruitment program Provides optional services Immediate availability, can confirm finalists within 60 to 90 days Offers 1 year guarantee, with direct expenses only Labor Relations &Assoc Provides basics in services for recruitment $ 7,230 comments: Firm located in Minneapolis metro area Provides the basics in services, on flexible basis Allows for option of scaling down services if council desires League of MN Cities Provides basics in services for recruitment $ 5,012 comments: Firm located in Minneapolis metro area League can not"solicit"candidates from other cities, will advertise only Personnel Decisions Inc. Full scope = $19,500 & $500 for ads & phone $ 20,200 comments: Firm located in Minneapolis metro area Provides a full array of service and testing in recruitment program allows for flexibility in pieces or types of services offered Will work closely with you to ensure your needs are met Subtract$1,000 for 6 mo. review if activity 1-5 are utilized Provides a 13 week timeline The PAR Group Full scope = $12,500 & $4,000 for travel, printing, other $ 16,500 comments: Firm is located in Lake Bluff, Illinois in Chicago area Provides a full array of service and testing in recruitment program Provides a time line of 90 days