HomeMy WebLinkAbout1989 11-13 EDAP Regular Session•
(following
1. Call to Order
2. Roll Call
3. Approval of Minutes:
a. October 23, 1989
4. Resolution:
a. Authorizing the
Heritage Center
5. Adjournment
EDA AGENDA
CITY OF BROOKLYN CENTER
NOVEMBER 13, 1989
adjournment of City Council meeting)
- Special Session
Purchase of Computers for Earle Brown
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RESOLUTIONS
MINUTES OF THE PROCEEDINGS OF THE ECONOMIC
DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN
CENTER IN THE COUNTY OF HENNEPIN AND THE STATE
OF MINNESOTA
SPECIAL SESSION
OCTOBER 23, 1989
CITY HALL
CALL TO ORDER
The Brooklyn Center Economic Development Authority met in special session and
was called to order by President Dean Nyquist at 10:05 p.m.
ROLL CALL
President Dean Nyquist, Commissioners Celia Scott, Todd Paulson, Jerry Pedlar,
and Philip Cohen. Also present were EDA Director Gerald Splinter, Finance
Director Paul Holmlund, City Attorney Charlie LeFevere, EDA Coordinator Brad
Hoffman, and Administrative Aide Patti Page.
APPROVAL OF MINUTES - OCTOBER 9. 1989 - SPECIAL SESSION
There was a motion by Commissioner Scott and seconded by Commissioner Paulson to
approve the minutes of the October 9, 1989, meeting. The motion passed.
Commissioner Pedlar abstained from the vote as he was not present at this
meeting.
RESOLUTION NO. 89 -31
Commissioner Celia Scott introduced the following resolution and moved its
adoption:
RESOLUTION ACCEPTING BID AND AUTHORIZING THE PURCHASE OF 1,200 STACKING CHAIRS
FOR EARLE BROWN HERITAGE CENTER
The motion for the adoption of the foregoing resolution was duly seconded by
Commissioner Todd Paulson, and the motion passed unanimously.
RESOLUTION NO. 89 -32
Commissioner Todd Paulson introduced the following resolution and moved its
adoption:
RESOLUTION ACCEPTING BID AND AUTHORIZING THE PURCHASE OF FOLDING TABLES FOR
EARLE BROWN HERITAGE CENTER
The motion for the adoption of the foregoing resolution was duly seconded by
Commissioner Jerry Pedlar, and the motion passed unanimously.
RESOLUTION NO. 89 -33
Commissioner Todd Paulson introduced the following resolution and moved its
adoption:
RESOLUTION ACCEPTING BID AND AUTHORIZING THE PURCHASE OF MOBILE FOLDING
10/23/89 -1-
PLATFORMS AND ACCESSORIES FOR EARLE BROWN HERITAGE CENTER
The motion for the adoption of the foregoing resolution was duly seconded by
Commissioner Celia Scott, and the motion passed unanimously.
The EDA Director presented a Resolution Authorizing the Economic Development
Authority to Bid at the Foreclosure of 5956 Beard Avenue North. Councilmember
Paulson inquired regarding the grant which had been approved for this home. The
EDA Coordinator stated the grant work was never completed because of a divorce.
He noted if the bank is the only other bidder for this property, he would let
them buy it and try to negotiate a purchase from the bank.
RESOLUTION NO. 89 -34
Commissioner Philip Cohen introduced the following resolution and moved its
adoption:
RESOLUTION AUTHORIZING THE ECONOMIC DEVELOPMENT AUTHORITY TO BID AT THE
FORECLOSURE SALE OF 5956 BEARD AVENUE NORTH
The motion for the adoption of the foregoing resolution was duly seconded by
Commissioner Jerry Pedlar, and the motion passed with Mayor Dean Nyquist
abstaining.
DISCUSSION ITEM
ACQUISITION OF 6730 PERRY AVENUE NORTH
The EDA Coordinator noted this home is in very poor condition and noted the
waste water line has been leaking for the past two years and has caused
significant damage.
There was a motion by Commissioner Scott and seconded by Commissioner Pedlar
directing staff to proceed with discussions with the owner of 6730 Perry Avenue
North. The motion passed unanimously.
ADJOURNMENT
There was a motion by Commissioner Pedlar and seconded by Commissioner Cohen to
adjourn the meeting. The motion passed unanimously. The Brooklyn Center
Economic Development Authority adjourned at 10 :13 p.m.
10/23/89 - 2 -
President
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CITY OF BROOKLYN CENTER council Meeting Date 11/13/89
Agenda Item Number AlL2.i
REQUEST FOR COUNCIL CONSIDERATION
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ITEM DESCRIPTION:
Earle Brown Heritage Center Computer
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DEPT. APPROVAL:
Signature - title
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No comments to supplement this report Comments below /attached
MANAGER'S REVIEW /RECOMMENDATION:
EDA Coordinator
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SUMMARY EXPLANATION: (supplemental sheets attached X )
The attached memo details a computer system (hardware and software) for the Heritage Center. The
cost of the system reflects our price through our LOGIS contract. I will be available Monday to
discuss the system.
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J O S E P H G . O S T E R
8040 Idaho Circle, Brooklyn Park, Minnesota 55445 612/561 -5701
October 16, 1989
City of Brooklyn Center
Economic Development Authority
Attn: Mr. Brad Hoffman
6301 Shingle Creek Parkway
Brooklyn Center, Minnesota 55430
Dear Mr. Hoffman:
Attached are proposals from various vendors to supply computer hardware
and software for the Earle Brown Heritage Center. I feel that this proposal
best meets the need of the Center. This recommendation provides a summary
of the software and hardware required, and a cost summary for the recommended
products.
Accounting Software: The accounting software recommended is Solomon III.
Solomon is highly rated by software and microcomputer publications including
Software Digest, P C Magazine, Business Software Magazine, CPA Micro Report
and Journal of Corporate Computing.
Solomon is a integrated accounting package marketed in modules. The modules
required to meet all of the needs of the Heritage Center include System
Manager /Network, General Ledger, Accounts Payable, Accounts Receivable,
Payroll, and Order Entry. The total cost of the accounting software is
- $4,203.
Administrative Support: Administrative support will continue to be handled
with Lotus 1 -2 -3, Word Perfect and DBase III. All of the software programs
recommended are widely used within the City and the Heritage Center.
I recommend a version of Lotus call the Government Version be purchased
at a cost of $495. This version allows unlimited copying of the program
for use on multiple work stations.
The word processing program, Word Perfect, is available in a network version
that provides function key templates and user manuals for each work station.
This is important because Word Perfect has a three tier function key template
that is difficult for occasional users or new users to memorize. The
cost of the network version for the recommended network configuration
is $710.
The Heritage Center has already purchased DBase III and no additional
packages or versions are recommended.
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Convention Facility Management and Scheduling: The software products
recommended are ResNet for facility scheduling and Meeting Matrix for
providing room layouts and setup drawings. Both products are marketed
and supported by Phoenix Solutions, Inc.
ResNet meets all of the requirements identified in the needs analysis.
It is capable of scheduling meeting rooms, room divisions, trade show
booths, etc. Food services, audio /visual, setup and other services
can be scheduled and billed with this program.
Meeting Matrix is a Computer Aided Drafting program created to handle
room layout and setup drawings for meeting rooms. It is useful in showing
customers their meeting configurations and providing detailed graphic
instruction for the Center's setup staff.
Bed and Breakfast Desk Management: Bed and Breakfast software is not
specifically addressed in this proposal because it is anticipated that
the convention center management and accounting software will provide
the necessary registration, billing and accounting software. The ability
to handle food charges, bar charges, phone services, etc. are available
in ResNet and the accounting software can track Bed and Breakfast finances
separately and /or combined with other profit centers.
Property Management: Property management software is not specifically
addressed in this recommendation because the functions required can
be handled with the accounting software. The order entry and accounts
receivable packages can produce monthly billing for office space leasing
as- well -as document other charges such as grounds maintenance, garbage
service, snow plowing, utilities, etc. Office space leasing finances
can be tracked separately and /or combined with other functional divisions.
Hardware Systems: The hardware system recommended is a local area
network configuration of Hewlett Packard microcomputers and one Toshiba
portable microcomputer. Cedar Computer Center and Data Accessories
of Minnesota will cooperatively install and maintain the system.
Cedar Computer Centers is responsible for providing the computer hardware.
The microcomputers recommended include one file server microcomputer
(HP Vectra QS20 100e), four microcomputer workstations (HP Vectra ES /12
46), a portable microcomputer (Toshiba T3100e), a wide carriage printer
(Okidata 391), a narrow carriage printer (Okidata 390) an uninterruptable
power supply (Grizzly Model 500 VRS) and a tape backup unit (Archive
Model FT60). Cedar Computer Centers is also supplying the accounting
software and administrative support software.
The local area network will be installed and supported by Data Accesories
of Minnesota. They will also offer unlimited phone support for systems
with modems and Carbon Copy software for $60.00 per month after the initial
90 day installation support period.
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Computer System Implementation: I recommend that the Earle Brown Heritage
Center computer system be implemented in two stages. This is due to
the fact that, while the Center is under construction and not now open
for business, the computer system is needed to provide efficient management
of event scheduling activities, provide financial reporting and administrative
support. The entire system is not needed until the Center opens for
business and implementation of the entire system would result in some
duplicate cost when the system is moved to the new location.
The first implementation stage involves the purchase and installation
of all software products and two additional microcomputers. The computers
will not be networked until the final move is made to the Center's new
offices. The software programs will operate as stand -alone workstations
during this stage.
The second stage involves the purchase of the additional microcomputers
and the installation of the computer network. This will provide access
to the central disk drive and software as- well -as the ability to use
stand -alone software programs at each work station. The cost of each
implementation stage is provided in the following summary.
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Quantity Description Cost
Cedar Computer Center
1
1
1
Total Cedar Computer Center - Stage I
Larry Rossini
5 Setup and Implementation of Solomon III
Accounting Software Packages ($200.00 Each) $ 1,000.00
Total Larry Rossini $ 1,000.00
Phoenix Solutions, Inc.
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1
1
1
2
HP Vectra ES /12 46 microcomputers $ 6,596.50
including 1 2400 baud modem
1 Okidata 390 dot matrix printer (narrow) 575.00
1 Okidata 391 dot matrix printer (wide) 789.00
6 Solomon III Accounting Software modules 3,575.00
(System Manager, General Ledger, Accounts
Payable, Accounts Receivable, Order Entry
and Payroll)
Lotus 1 -2 -3 - Government Version
Carbon Copy Plus Communication Software
Word Perfect Network with 3 Workstations
ResNet Multi User Version
Meeting Matrix for Planners Multi User
8 hours on -line user support
Day of Training (Does not include expenses)
Total Phoenix Solutions, Inc.
Stage I - Computer System Implementation Cost
385.00
140.00
710.00
$ 12,770.50
$ 4,000.00
2,995.00
500.00
600.00
$ 8,095.00
Total Cost Stage I $ 21,865.50
410 Stage II - Computer System Implementation Cost
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Quantity Description Cost
Cedar Computer Center
1 HP Vectra QS20 100e microcomputer $ 6,997.81
(File Server)
2 HP Vectra ES /12 46 microcomputer 5,997.50
(workstations)
1 Toshiba T3100e Portable microcomputer 3,395.50
with 2400 baud modem
1 Grizzly Model 500 VRS 500 Watt 624.50
Uninterruptable Power Supply
1 Archive Model FT60 60MB Tape 692.50
Backup Unit
1 Solomon III System Manager /Network 620.50
Total Cedar Computer Center - Stage II $ 18,328.31
Data Accessories of Minnesota
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Installation and Training of Novelle $ 6,378.00
Network with 90 Implementation Support
Total Data Accessories of Minnesota $ 6,378.00
Total Cost Stage II $ 24,706.31
Total Computer System Cost $ 46,571.81
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History
Earle Brown Heritage Center
Data Processing Needs Analysis
By: Joseph G. Oster
March 7, 1989
The Earle Brown Heritage Center is a restoration of a historic site, Earle
Brown Farm, into a multi- function facility. The nine building complex will
be completely restored to serve a wide variety of needs including conventions,
conferences, trade shows, banquets, dances, concerts, wedding receptions,
craft fairs, collector exhibits, auctions and musical or theatrical performances.
The following will be included in the finished complex:
The Inn on the Farm: A historic bed and breakfast hotel occupying the original
main farm house. The Inn includes eleven bedrooms with private bath, period
furnishings, executive service, gazebo, AV equipped conference room and private
dining facility.
Convention Center and Exhibit Hall: The farm's hippodrome will be restored
into the convention center and exhibit hall. Included is more than 13,000
square feet of floor space for meetings, conventions, trade exhibits, banquets
and other special events. Also included is 2,500 square feet of prefunction
and reception area and lower level meeting rooms. The convention center
has a banquet capacity of more than 900 and theater -style seating capacity
of more than 1,000 people.
Restaurant and Lounge: The farmstead stable will be remodeled into a 160
seat dining and lounge facility. This facility will be leased.
On -Site Food and Beverage Service: Provides a fully- equipped, 5,000 square
foot kitchen and bakery located on the lower level of the convention center
and exhibit hall. The banquet food and beverage service will be leased to
a caterer.
Office Space: Two small barns, a blacksmith shop and a grainery will be
renovated into office space. The four buildings will provide 20,000 square
feet of office space.
While the Earle Brown Heritage Center is developed and owned by the City
of Brooklyn Center's Economic Development Authority, it is managed by the
property management firm of Beisner, Ltd. The firm is responsible for the
operation of the center.
Data Processing Needs
The data processing needs of the Earle Brown Heritage Center are separated
into five functional areas: accounting, Administrative support, convention
facility management and scheduling, bed and breakfast and property management.
While each has it's own requirements, favorable consideration will be given
to a system that offers the greatest degree of compatibility between functional
areas.
Software Requirements
Accounting: A general ledger accounting package is the primary consideration
of the Earle Brown Heritage Center data processing system. The package must
have the following features:
1. Multiple company accounting.
2. Multiple department accounting within each company.
3. Departmental and company budgeting.
4. Accounts payable including check writing, aging reports, discounting
vendor reporting, outstanding orders, partial payments, etc.
5. Accounts receivable including invoicing, aging reports, multiple
level sales tax reports, discounting, service charges, prepayments,
etc.
6. Financial reporting including trial balance, balance sheet, income
statement, departmental and company reports, consolidated reports
by company, selected companies and /or all companies, actual to budget
reports, month -to -date and year -to -date reports, current period and
previous period reports, etc.
7. Payroll including check writing, tax reporting (state and federal
withholding), W -2's, tax tables, commissions, bonuses, etc.
Administrative Support: The administrative support functional area is presently
supported with a HP Vectra ES /12, 20 Megabyte hard drive, Laser Jet printer,
Lotus 1 -2 -3, Word Perfect 5.0, and DBase III Plus. It is anticipated that
the requirements of this functional area are met by the present system.
It is strongly desired to be able to connect this computer with the other
systems through a local area network.
Administrative support needs to be addressed in the system recommendation
in that it must offer compatibility in the system operating environment.
The preference is that the entire system will be IBM PC compatible and therefore
be compatible with the present system. The reconunended system should enable
the HP Vectra to be connected and operate in the same capacity as other recommended
hardware and software. The HP Vectra will not be a separate system support
issue and the vendor will accept the Vectra as part of the entire system.
The Vectra should not be singled out as a not covered item for the purpose
of system support.
If the HP Vectra and present software packages do not offer compatibility
with the recommended system, the vendor's proposal must include administrative
support software and hardware. The following features must be included:
1. Word processing with the ability to incorporate mailing data bases
into form letters, dictionary support, laser printer support, etc.
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2. Spreadsheet with the ability to develop template programs, convert
to ACCII files, laser printer support, macro creation, sorting ability,
graphic support, etc.
3. Data Base Management with the ability to write program routines,
do screen formats, define flexible report formats, communicate with
word processing programs to develop personalized form letters, laser
printer support, etc.
Convention Facility Management and Scheduling: This program is also an extremely
important component of the data processing system. The purpose is to manage
the scheduling of the convention center floor and the various meeting rooms
throughout the complex. Since the Earle Brown Heritage Center is a new facility,
the software should be flexible to allow for modifications as operating experience
indicates that changes are needed or desired. The following features are
desired:
1. Schedule a minimum of 12 rooms including various configurations where
rooms are combined into one by opening partitions.
2. Schedule a minimum of 88 booths located on the convention floor and
schedule utilities and services required at each booth (i.e. water,
electricity, gas, telephone, etc.).
3. Identify room setup requirements based upon attendance and AV needs.
4. Track AV and other inventory to identify if sufficient equipment
is available equipment rental requirements.
5. Schedule food and beverage service with five food and /or beverage
setups per day.
6. Provide the ability to tentatively schedule events, equipment and
services and to flag tentative events so that organizations can be
contacted at various intervals to identify their intentions.
7. Schedule setup /teardown times required for each event.
8. Prepare detail charges for invoicing either directly from the scheduling
software or from the accounting software.
9. Identify equipment and setup /teardown requirements of customer supplied
equipment.
10. Identify dates and times when facilities are not scheduled so dates
can be provided to various event promoters.
11. Provide a true multi -user environment so that inquiries and other
tasks can be performed at the same time at different terminals.
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12. Have user and terminal security so that unauthorized users can't
tamper with event schedules.
13. Include the ability to obtain and schedule entertainment for events
if requested by the customer.
Bed and Breakfast: The Bed and Breakfast desk is a hotel /motel operation.
The data processing needs may be met by the convention center management
and scheduling software. While each function is involved in renting rooms,
equipment and services, the Bed and Breakfast is more like a retail operation
with walk -in customers, credit card charges, cash transactions, special discounts
miscellaneous services included, and couponing. If the convention center
software is not able to accommodate the the Bed and Breakfast operation,
the vendor's proposal must provide software for the special needs.
1. Ability to reserve single rooms as- well -as blocks of rooms in conjunction
with convention center activities.
2. Allow convention schedulers to make inquiries into room availability
from terminals at main office area.
3. Schedule and bill activities in meeting rooms and gazebo located
at the Bed and Breakfast facility.
4. Track and bill telephone and other chargeable expenses.
Property Management: The property management system is required to track
the office space rental for the Earle Brown Heritage Center and other offices
and retail centers operated by Beisner, Ltd. The system must include the
following features:
1. Ability to track multiple companies and buildings.
2. Have flexible rate structures that offer discounts for early rental
payments, free rental periods, discount periods, etc.
3. Ability to charge operating expenses (i.e. grass cutting, snow plowing,
garbage service, water, sewer, electricity, gas, etc.) based upon
actual usage, prorated formula, or square footage.
4. Print invoicing reports that detail the appropriate rates, rate basis,
extended amounts and operating expenses.
Hardware Requirements
The system proposed must be able to accommodate six workstations immediately.
It must also be capable of upgrading to accommodate 12 workstations. The
upgrade can be performed by adding ports to the existing CPU (central processing
unit), adding more workstations to a local area network, bridging local area
networks, etc. Upgrades should not involve swapping of CPU's or file servers
although bridging additional file servers may be considered.
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All hardware components must be of the highest quality. Installing lesser
quality components in brand name equipment is not acceptable. This does
not mean that third party hardware cannot be included, but that the third
party manufacturer must have an excellent reputation in the computer industry
and the product quality must be equal to or greater than the original
manufacturer's equipment. The following workstations must be included in
the hardware system:
Administrative Assistant: The administrative assistant needs to have access
to all software systems. The administrative assistant is the main clerical
position and requires printer support with the work station. The printer
must be letter quality, preferably a laser printer, and must be either quiet
or include a sound enclosure.
Accountant: The accountant needs to have access to accounting software and
any other software that provides invoicing or other accounting related support.
The workstation needs printer support of a wide carriage dot matrix capable
of draft speed and printing six part forms.
Receptionist: The receptionist will need access to all systems except the
accounting software. This work station does not require direct printer support
as long as printing can be sent to other system printers.
Event Manager /Scheduler: The event manager /scheduler needs access to all
systems and does not need direct printer support. This position needs access
at the convention center as- well -as the administrative offices. This may
be a good application for a portable computer but the portable computer must
be able to act as a terminal to accounting and other software packages.
Bed and Breakfast: The bed and breakfast front desk needs to have access
only to the bed and breakfast software and should be supported by a dot matrix
printer to do check -in and check -out activities.
Future Workstations: There are a number of potential applications that would
require additions to or expansion of the system. The following are some
of the applications considered:
1. Catering is planned to be contracted to a service provider and at
this time the provider has not been determined. The caterer may
want to be included in the system so that catering service schedules
can be electronically coordinated with the banquet kitchen. The
addition of this work station would be at the request and cost of
the caterer.
2. The restaurant /lounge is also planned to be contracted and no service
provider has been selected. Again, it is the service provider's
choice to be included in the system at their cost.
3. A meeting management program is not included in the needs analysis
but may be a service offered to attract organizations that do not
have their own system to handle program registration, event check -
in, name tag printing, etc. Offering this service would require
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two workstations sharing one printer in the reception area of the
convention center. If the printer is a laser printer, the workstations
could be used to provide secretarial service to exhibitors.
Power Conditioning /Backup: A power backup and conditioning system is required
that is capable of providing a period of power backup sufficient to systematically
shut down the main computer system and network in case of power outage.
Each individual workstation should be provided with surge protection.
Data Backup System: A data backup system must be included that is capable
of performing data backup of the entire hard disk drive(s) on a single tape.
Backup should occur at night or be performed without having to shut down
the system during regular working hours.
Access Security: Access security must be provided in the following ways:
1. System access security must be provided through user ID's so that
only authorized users are permitted to use the computer system.
This is particularly important for work stations located in the lobby
or public areas.
2. Application access security must be provided through passwords to
limit access to specific applications to those who have a need to
access those applications.
3. Port security should be provided to guard against unauthorized modem
access. It may be that administrative procedures of shutting off
modem access at times when not needed is sufficient, but if continuous
modem access is required, a dial -back device or front -end security
system must be included.
System Installation: The vendor is responsible for the installation of the
entire computer system including all hardware presently owned by the center.
The vendor must coordinate, with hardware and software providers, the process
of installing products and providing user training. Merely setting up on
part of the system and requiring the Heritage Center staff to coordinate
installation of the remaining system is not acceptable. The vendor selected
will accept responsibility for installation and training for the the entire
system.
Service Contracts: Maintenance contracts should include one contract for
the entire system or, at a minimum, one -call coordination of any hardware
and /or software problem. The Heritage Center staff should not have to be
concerned with what part of the system is causing the problem so that they
can contact the appropriate maintenance service provider.
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Summary
The Earle Brown Heritage Center data processing system will be very important
to the effective operation of the center. Since the computer system and
software will be installed prior to the opening of the center, the system
will play an important role in determining the administrative and accounting
work flows. The system selected should provide flexibility because changes
are expected as indicated by operating experience.
It is important that every effort is given to provide a quality, user - friendly
system that can be operated without data processing support staff. It must
truly be a "turn -key" system without complicated technical system administration
tasks. While the basic system should be simple, the system should allow
for user - defined reporting, query languages, and other features that may
be utilized as staff becomes comfortable with system operation.
All costs must be included in the system recommendation including installation,
training, annual hardware maintenance and service contracts, software support,
software updates, shipping, etc. Any incidental costs (i.e. hourly costs
for additional training, installation, programing, etc.) must be clearly
defined.
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Commissioner introduced the following
resolution and moved its adoption:
EDA RESOLUTION NO.
RESOLUTION APPROVING PURCHASE OF COMPUTER EQUIPMENT FOR
EARLE BROWN HERITAGE CENTER
WHEREAS, it is necessary to purchase computer equipment
for the Earle Brown Heritage Center; and
WHEREAS, an analysis has been completed to indicate the
appropriate equipment; and
WHEREAS, the Economic Development Authority has a
purchasing agreement with LOGIS to allow for the purchase of
computer equipment.
NOW, THEREFORE, BE IT RESOLVED by the Economic
Development Authority of the City of Brooklyn Center to approve
the purchase of stage 1 of the computer equipment as outlined in
the analysis for a cost of $21,865.50.
Date President
The motion for the adoption of the foregoing resolution was duly
seconded by Commissioner , and upon vote being
taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
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•Uornes at Law
ROBERT :A. At.SOP
RONALD H. BATTY
!1:\R\ J. BRINDEN
ROBERT C. C:ARISON
CHRISTINE: M. CHALE
ROBERT L. DAVIDSON
J011\ B. DEAN
ROBERT J. DE1KE
M:ARV C. DOBBINS
JEFERF\ Esc
STFF.ANIF. N. GAI.EN
DAVIT) L. CRAVEN
.1011\ R. GREEN
November 6, 1989
Mr. Gerald Splinter
City Manager
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
Dear Jerry:
HOLMES & GRAVEN
CIT ARI I RED
470 Pillsbury Center, Minneapolis, Minnesota 55402
(612) 337 -9300
Rapifas (6121337-9310
WRITER'S DIRECT DIAL.
337 -9215
Re: North Metro Convention and Tourism Bureau
You have asked for my comment on a letter from Mr. Charles Cook, Executive
Director of the North Metro Convention and Tourism Bureau, to Mr. Joseph
Strauss, Executive Director of the North Pietro Mayors Association, relating to
permissible expenditures of the Tourism Bureau.
I do not disagree with the general legal principles expressed in the letter or in the
attached memorandum. However, I believe there may be a number of ways in
which the Tourism Bureau and the North Metro Development Association may
combine their resources and act in concert to their mutual benefit.
Minnesota Statutes Section 477A.018, authorizes the use of the lodging tax 1 I ... to
fund a local convention or tourism bureau for the purpose of marketing and
promoting the city ... as a tourist or convention center."
The North Metro Development Association is a joint powers organization organized
for the purpose of assembling and disseminating information concerning the
member communities and promoting economic development within the northern
suburbs through the implementation of a public relations and marketing plan.
The Tourism Bureau is authorized to expend funds for the purpose of marketing and
promoting the city as a tourist or convention center. If the activities of the North
Metro Development Association do not serve these ends, the payment of Tourism
Bureau funds to the Development Association would not be authorized.
Furthermore, there may be expenditures which incidentally enhance tourism which
are nevertheless unauthorized expenditures. For example, the Attorney General
has ruled that proceeds from a city lodging tax may not be used to finance capital
expenditures such as building a cross - country ski trail even though the trail would
JOHN C. 110ES( HI ER
J:A NIES S. 1101. AIFS
DI NE (:..1011 \SO\
.1011N R. 1. :\RSON
W F:I.1. INC EON H. Lac
CHAR' ES 1.. LATE FRI:
J011N AI. LI:PF.I RE. JR.
F20111 12T .1. 1 INDAI. 1.
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D:AXIII. R. NELSON
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I.:ARRV 7.1. AI ER IIIEI)I
BONNIE. 1.. NA 11.1(155
Mr. Gerald Splinter
November 6, 1989
Page 2
be a tourist attraction. Therefore, if the activities and expenditures of the North
Metro Development Association are limited to economic development in such a
way that there is no marketing or promotion of the city as a tourist or convention
center, or if expenditures of the association are for purposes such as the
construction of a cross - country ski trail, the Tourism Bureau would not be legally
authorized to participate financially in them.
However, this is not to say that the two organizations may not cooperate in
activities in which they have common goals and authority.
For example, in the memorandum attached to ' Cook's letter, it is noted that the
development association has assisted three local festivals through advertising and
assistance in promotional literature. Many of the activities of the development
association will have the effect of promoting the area as a tourist or convention
center.
Although I am not familiar with many of the activities of either the Tourism
Bureau or the Development Association, it appears to me that the purpose of the
Development Association is broad enough to include many of the services listed in
the convention and visitors bureau agreement. Therefore, there may be many
activities which the Tourism Bureau and the Development Association could
undertake in concert. For example, there may be a number of ways in which the
Tourism Bureau could participate in the publication of the Development
Association's magazine, Northern Light. The Bureau could purchase copies of
Northern Light for distribution to people making inquiries about the area,
additional information specifically relating to tourism could be included in the
Northern Light publication, or the Tourism Bureau could purchase space in
Northern Light for the publication of information specifically relating to the
desirability of the area as a tourism and convention center, and the publication
could be jointly distributed by the Development Association and the Tourism
Bureau.
There are no doubt a number of other activities which could be undertaken
cooperatively between the two organizations. I do not believe that the
participation by the Tourism Bureau should be in the form of a simple contribution
to the Development Association because the activities of the Development
Association may not directly serve the authorized purposes of the Tourism Bureau.
However, if the participation by the Tourism Bureau takes the form of the
purchase of services or a joint undertaking by agreement for activities which fall
within the purposes of both organizations, I believe that such participation would
be legally permissible.
If you have any more questions relating to this matter, please feel free to give me
a call.
Very truly yours,
Charles L. LeFevere
CLL:rsr
BR291 -004