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HomeMy WebLinkAbout2011 02-28 CCP Regular Session AGENDA CITY COUNCIL STUDY SESSION February 28, 2011 6:00 p.m. City Council Chambers A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 1. City Council Discussion of Agenda Items and Questions 2. Miscellaneous 3. Discussion of Work Session Agenda Items as Time Permits 4. Adjourn CITY COUNCIL MEETING City of Brooklyn Center February 28, 2011 AGENDA 1. Informal Open Forum with City Council — 6:45 p.m. provides an opportunity for the public to address the Council on items which are not on the agenda. Open Forum will be limited to 15 minutes, it is not televised, and it may not be used to make personal attacks, to air personality grievances, to make political endorsements, or for political campaign purposes. Council Members will not enter into a dialogue with citizens. Questions from the Council will be for clarification only. Open Forum will not be used as a time for problem solving or reacting to the comments made but, rather, for hearing the citizen for informational purposes only. 2. Invocation — 7 p.m. 3. Call to Order Regular Business Meeting —The City Council requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 4. Roll Call 5. Pledge of Allegiance • 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 1. February 14, 2011— Study Session 2. February 14, 2011 — Regular Session 3. February 14, 2011— Work Session b. Licenses C. Resolution Approving the Contract for Law Enforcement Labor Services (LELS) Local 86 and the City of Brooklyn Center for the Calendar Years 2011 and 2012 d. Resolution Approving Plans and Specifications and Authorizing Advertisement for Bids, Improvement Project Nos. 2011 -01, 02, 03 and 04, Palmer Lake East Neighborhood Street, Storm Drainage and Utility Improvements i CITY COUNCIL AGENDA -2- February 28, 2011 e. Resolution Approving Plans and Specifications and Authorizing Advertisement for Bids, Improvement Project Nos. 2011 -05 and 06, Unity Avenue and Shingle Creek Parkway Street Improvements f. Resolution Accepting Bid and Awarding a Contract, Improvement Project No. 2010 -16, Shingle Creek Restoration Improvements g. Resolution Supporting a Strong, Effective Metropolitan Council for the Twin Cities Region h. Resolution Opting Not to Waive Limited Tort Liability for 2011 i. Resolution Authorizing Execution of a Letter of Engagement for Professional Audit Services for the 2010 Fiscal Year 7. Presentations / Proclamations /Recognitions/Donations a. Resolution Expressing Recognition of and Appreciation for the Dedicated Public Service of Sharon Kephart Requested Council Action: — Motion to adopt resolution. b. Resolution Expressing Recognition of and Appreciation for the Dedicated Public Service of the Brooklyn Center Special Events Committee Requested Council Action: — Motion to adopt resolution. 8. Public Hearings None. 9. Planning Commission Items None. 10. Council Consideration Items a. Consideration of Type IV 6 -Month Provisional Rental License for 6020 Emerson Avenue North Requested Council Action: — Receive staff report. — Motion to open hearing. — Receive testimony from applicant. — Motion to close hearing. —Take action on rental license application and mitigation plan. CITY COUNCIL AGENDA -3- February 28, 2011 b. Consideration of Type IV 6 -Month Provisional Rental License for 4718 Twin Lake Avenue Requested Council Action: — Receive staff report. — Motion to open hearing. — Receive testimony from applicant. — Motion to close hearing. —Take action on rental license application and mitigation plan. 11. Council Report 12. Adjournment Agenda Items Tabled or Continued An Ordinance Amending Chapter 4 of the Brooklyn Center City Charter, Sections 4.01 and 4.02 —This item was first read on April 12, 2010; was published in the official newspaper on April 22, 2010; and the Public Hearing was continued at the May 10, 2010, meeting until such time as the Charter Commission makes its recommendation to the City Council. Resolution Establishing Fees for Community Garden Plots Regulated by the City of Brooklyn Center —This item was tabled at the May 10, 2010, meeting. i AGENDA CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY WORK SESSION February 28, 2011 Immediately Following Regular City Council and EDA Meetings Which Start at 7:00 P.M. Council Chambers City Hall A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. ACTIVE DISCUSSION ITEMS 1. Progress Reports on Achievement of Strategic Goals 2. Northport Park Recommendations by Citizen — Mayor Willson 3. Hwy 252 Update 4. Presentation of the Tax Increment Report Relating to the Creation of Tax Increment District No. 5 (Shingle Creek Crossings) PENDING LIST FOR FUTURE WORK SESSIONS Later /Ongoing 1. Progress Reports on Achievement of Strategic Goals 2. School District Discussions/BC Strategic Plan Report 3. All City Open House 4. Sister City Update 5. Neighborhood Designations 6. Department Year End Reports 7. Active Living Program 8. Graduated Sanitary Utility Rate Study 9. Garbage Hauler Organized Collection Update 10. Joint Meeting with Commissions April 6th Follow -up 11. Shingle Creek Crossing 12. Financial Commission Report 13. Youth Participation Request i City Council'A enda Item No. 6a • • MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL ® OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA STUDY SESSION FEBRUARY 14, 2011 CITY HALL — COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Study Session called to order by Mayor Tim Willson at 6:00 p.m. ROLL CALL Mayor Tim Willson and Councilmembers Carol Kleven, Kay Lasman, Tim Roche, and Dan Ryan. Also present were City Manager Curt Boganey, Public Works Director /City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, Assistant City Manager /Director of Building and Community Standards Vickie Schleuning, Assistant City Attorney Mary Tietjen, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS Councilmember Ryan requested discussion of Work Session Item 2, Progress Reports on Achievement of Strategic Goals, and the staff report handout. City Manager Curt Boganey explained that only one item was changed related to the legislative support. Councilmember Lasman requested discussion of Item 6d, Resolution Calling for a Public Hearing on Proposed Special Assessments for Diseased Tree Removal Costs, Delinquent Weed Removal Costs, Delinquent Nuisance Abatement Costs, Delinquent Administrative Fines /Citations, and Administrative Vacant Building Registrations, and indicated she was surprised at the number of banks on the list. She asked if this is a typical number or reflection of the economy and impact of deferred expenses. Mr. Boganey noted this is the first time that administrative fines have been included on the list, which is one factor, and the economy may have resulted in an impact as well. Councilmember Lasman noted that the cost is higher when administrative fees are added and she is concerned with the number of larger businesses on the list. Councilmember Lasman requested discussion of Item 6f, Resolution Calling for a Public Hearing on a Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1, Establishment of Tax Increment Financing District No. 5, and the Adoption of a Tax Increment Financing Plan. She requested a correction to Springsted's memorandum, paragraph 3, Section 2, to indicate Mr. Boganey is the City Manager, not the City Administrator. 02/14/11 -1- DRAFT Councilmember Lasman noted the comment on page 11 indicating police service costs should not increase; however, she thinks there may be some increase since the site is currently vacant. Mr. Boganey reviewed the language, noting it says "noticeable demand for services" which he believed was a correct statement since it is not anticipated there would be an expansion of the Police Department. Councilmember Lasman noted the property is currently vacant and she thinks that a new use would impact Police services in some way, even if minimally. Mr. Boganey stated the Police Chief and Fire Chief were not consulted on this statement so he will ask for their opinion and present it for the Council's review at a Work Session. Councilmember Ryan requested discussion on EDA Item 4a, Resolution Authorizing Advertisement for Bids, Earle Brown Heritage Center/Embassy Suites Connecting Link. He noted the resolution addresses distribution of funding to meet estimated project costs but the meeting packet does not contain the attachment referenced in the memorandum. Mr. Boganey confirmed the attachment is not included and stated Jim Glasoe, CARS, will be in attendance and able to explain what is contained within that memorandum. Director of Business and Development Gary Eitel advised that TIF District 2 closes on December 31, 2011, and the memorandum addressed eligible projects for those funds. Mr. Boganey explained this would be a reasonable project for use of those TIF funds and it is anticipated the amount will be large enough to cover that portion of the costs. It was noted that if not used this year, the TIF funds would be redistributed to the other taxing agencies. The Council acknowledged the anticipated shortfall in the State's budget and federal cutbacks g that will filter down to the municipal level. Councilmember Lasman requested information on the valuable programming the City has funded through CDBG that can be brought to Washington DC in March to show how the City has leveraged those funds to the resident's benefit. Councilmember Roche asked, in an effort to increase transparency, to remove Consent Agenda Item 6f, Resolution Calling for a Public Hearing on a Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1, Establishment of Tax Increment Financing District No. 5, and the Adoption of a Tax Increment Financing Plan. Mayor Willson stated it will be considered as Item l Of. Mr. Boganey referenced the January 24, 2011, Study Session minutes, Page 2, fourth paragraph, including a statement by Mr. Lillehaug indicating: "...the Event Chair contacted him to discuss this matter and indicated they will make it work to use Dupont Avenue." Mr. Boganey explained that the Committee has now decided the parade will use 63` Avenue instead of Dupont Avenue. Mayor Willson stated the comment in the minutes stands since the Event Chair had said they would make Dupont Avenue work. However, he had talked with the Event Chair at the pancake breakfast and the Chair said they would use 63` Avenue. 02/14/11 -2- DRAFT Councilmember Lasman concurred that the record stands correct as stated but comments have • been made tonight indicating the parade route will use 63` Avenue. Councilmember Ryan requested discussion on Item 9a, Planning Commission Application No. 2011 -0001 submitted by George Ogbonna for the Umunne Cultural Association for Special Use Permit Approval to Operate an Event Center at 5939 John Martin Drive. He reviewed the occupancy limit and asked if the concern expressed by an adjoining property owner had been addressed. Mr. Boganey noted Page 3 of the report, fourth paragraph, addresses the parking requirements for this type of use and explained that the recommended maximum occupancy of 357 is based on the number of parking stalls available. MISCELLANEOUS Councilmember Lasman indicated she would be gone March 11 -16 and March 27 -31, 2011. Councilmember Ryan stated that he will decide shortly whether he can attend the National League of Cities conference. If he attends, he would miss the March 14, 2011, Council meeting. DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS Mr. Boganey explained City Attorney LeFevere is on vacation so Assistant City Attorney Mary Tietjen will be attending the meeting tonight. REVIEW PROPOSED AGENDA FOR FACILITATED RETREAT Mr. Boganey presented the draft retreat agenda, described the anticipated discussion format, and requested Council comment. Councilmember Roche urged the Council to address how to authentically rebrand the City and improve people's impression of Brooklyn Center. He suggested that creative marketing "talking points" be developed that can be used to the City's advantage to get the word out about the improvements being made such as Shingle Creek Crossings, Earle Brown Heritage Center, Bass Lake Road, the FBI building, improvement to the housing stock, and Centennial birthday events. Mayor Willson commented on the City's accomplishments to reduce crime by 30 percent and steps taken to make the City a more livable community to entice young couples desiring a starter home. He stated the Council is not done with those efforts and will continue to address crime, housing, redevelopment, and how to raise the local economy to increase development and businesses. Mayor Willson stated he frequently talks with the press on those issues and spent as much time as an hour with a reporter that resulted in only a 20 second sound bite. He stated he is not opposed to considering a marketing effort provided dollars are available for funding. Councilmember Roche stated it may take a five- to ten -year marketing effort, if not longer, to significantly increase the tax base. 02/14/11 -3- DRAFT Councilmember Ryan agreed this is a very worthy concern and there is no reason why the Council couldn't have some discussion of this issue at the retreat. However, the matter in front of the Council is the structure of the retreat. He stated he is in agreement with the basic retreat outline, team building effort, and determining strategic goals going forward. Mr. Boganey pointed out that Goal #5 is to improve the City's image with citizens and others so it is fair to say the Council has already stated that is a primary on -going goal. He suggested that the Council devote a Work Session to discussion of a marketing and branding effort and what the City could expect in return of those efforts. Councilmember Lasman noted the staff and Council have worked for many years to position the City for a great future, which is a slow process. She supported an effort to clearly define that activity and make more of an effort to get the word out. The Council consensus was reached to schedule this topic for a future Work Session. ADJOURN STUDY SESSION TO INFORMAL OPEN FORUM WITH CITY COUNCIL Councilmember Lasman moved and Councilmember Ryan seconded to close the Study Session at 6:45 p.m. Motion passed unanimously. RECONVENE STUDY SESSION Councilmember Lasman moved and Councilmember Roche seconded to reconvene the Study Session at 6:52 p.m. Motion passed unanimously. ADJOURNMENT Councilmember Ryan moved and Councilmember Roche seconded to close the Study Session at 6:53 p.m. Motion passed unanimously. 02/14/11 -4- DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION FEBRUARY 14, 2011 CITY HALL — COUNCIL CHAMBERS 1. INFORMAL OPEN FORUM WITH CITY COUNCIL CALL TO ORDER INFORMAL OPEN FORUM The Brooklyn Center City Council met in Informal Open Forum called to order by Mayor Tim Willson at 6:45 p.m. ROLL CALL Mayor Tim Willson and Councilmembers Carol Kleven, Kay Lasman, Tim Roche, Dan Ryan. Also present were City Manager Curt Boganey, Public Works Director /City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, Assistant City Manager/Director of Building and Community Standards Vickie Schleuning, Tom Bublitz, EDA/HRA Specialist, Assistant City Attorney Mary Tietjen, and Carla Wirth, Timesaver Off Site Secretarial, Inc. Mayor Tim Willson opened the meeting for the purpose of Informal Open Forum. Ephraim Olani, 3813 51" Avenue N., stated his support for smoke free City parks and requested the Council's support to declare all City parks a tobacco free zone. Allan Hancock, 5520 Fremont Avenue N., stated his support of the Park Board's discussion to make the City's park system tobacco free. Diane Sannes, 7006 Willow Lane, thanked the Council for its support of Heart Health Month and announced the Relay for Life kick -off planning meeting is being held tonight at the High School. She stated her support to have all City parks totally smoke free, as undertaken by the City of Richfield. Heidi Winters, 2107 71 Avenue N., asked how the City can justify spending tax revenue to reconstruct streets. Mayor Willson asked that Ms. Winters hold her comments until the Public Hearing on that agenda item. Councilmember Roche moved and Councilmember Ryan seconded to close the Informal Open Forum at 6:51 p.m. Motion passed unanimously. 02/14/11 -1- DRAFT 2. INVOCATION At the invitation of Councilmember Kleven, Pastor Chris Icenogle of the Brookdale Covenant Church provided the Invocation. Pastor Icenogle also congratulated Brooklyn Center on its Centennial. 3. CALL TO ORDER REGULAR BUSINESS MEETING The Brooklyn Center City Council met in Regular Session called to order by Mayor Tim Willson at 7:01 p.m. 4. ROLL CALL Mayor Tim Willson and Councilmembers Carol Kleven, Kay Lasman, Tim Roche, and Dan Ryan. Also present were City Manager Curt Boganey, Public Works Director /City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, Assistant City Manager/Director of Building and Community Standards Vicki Schleuning, Tom Bublitz, EDA/HRA Specialist, Assistant City Attorney Mary Tietjen, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. 5. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 6. APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Lasman moved and Councilmember Ryan seconded to approve the Agenda and Consent Agenda, as amended, with the removal of Item No. 6f to Council Consideration Item No. l Of, and the following consent items were approved: 6a. APPROVAL OF MINUTES 1. January 24, 2011 — Study Session 2. January 24, 2011 — Regular Session 3. January 24, 2011 — Work Session 6b. LICENSES MECHANICAL Efficient Energy Systems, LLC 11815 61 Avenue N, Plymouth MVP Mechanical Service Co. 13360 Zachman Drive, Rogers Owens Companies, Inc. 930 East 80" Street, Bloomington RENTAL — STANDARDS PRIOR TO MARCH 6, 2010 RENEWAL 120157"' Avenue N. Edward Doll 02/14/11 -2- DRAFT RENTAL — CURRENT RENTAL STANDARDS INITIAL (TYPE II — two-year license) 5942 Aldrich Avenue N. Michael Brass 5133 Drew Avenue N. Sarah Vogt 5311 Queen Avenue N. Jamison Kohout — Real Assets 7018 Regent Avenue N. Danny Vo RENEWAL (TYPE III — one-year license) 3113 65 Avenue Ting Sui Zheng 5609 Bryant Avenue N. Mai Vang (passed w /weather deferral 6930 France Avenue N. Mursal Khaliif RENEWAL (TYPE 11— two-year license) 6712 Beard Avenue N. Morris Matthews 5548 Dupont Avenue N. John Lindahl (passed w /weather deferral) 5420 Fremont Avenue N. Ross Herman (passed w /weather deferral) 5332 Morgan Avenue N. James Waters (passed w /weather deferral) 7124 Newton Avenue N. Gary Hanagan 2718 O'Henry Road Wade Klick RENEWAL (TYPE I — three-year license) 531772 d Circle Alkis Michaelides 5856 Dupont Avenue N. Jack Froelke 6301 Grimes Avenue N. Mai Kao Her 5547 Humboldt Avenue N. J Thomas Equities LLC 7124 Indiana Avenue N. Weyu Bekuto SIGNHANGER Albrecht Sign Co. 7775 Main Street NE, Fridley Jones Sign Company 1711 Scheuring Road, De Pere, WI 6c. RESOLUTION NO. 2011 -22 APPROVING CHANGE ORDER NO. 2, IMPROVEMENT PROJECT NOS. 2010 -05, 06, 07, AND 08, CONTRACT 2010 -B, TWIN LAKE AREA STREET AND UTILITY IMPROVEMENTS 6d. RESOLUTION NO. 2011 -23 CALLING FOR A PUBLIC HEARING ON PROPOSED SPECIAL ASSESSMENTS FOR DISEASED TREE REMOVAL COSTS, DELINQUENT WEED REMOVAL COSTS, DELINQUENT NUISANCE ABATEMENT COSTS, DELINQUENT ADMINISTRATIVE FINES /CITATIONS, AND ADMINISTRATIVE VACANT BUILDING REGISTRATIONS 02/14/11 -3- DRAFT 6e. RECEIVE ANNUAL REPORT ON FRANCHISE FEES FOR 2010 6f. RESOLUTION CALLING FOR A PUBLIC HEARING ON A MODIFICATION TO THE REDEVELOPMENT PLAN FOR HOUSING DEVELOPMENT AND REDEVELOPMENT PROJECT NO. 1, ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 5, AND THE ADOPTION OF A TAX INCREMENT FINANCING PLAN This item was removed from the Consent Agenda to Council Consideration Item No. l Of. 6g. RESOLUTION NO. 2011 -24 APPROVING THE CONTRACT FOR LOCAL 49 (PUBLIC WORKS MAINTENANCE) AND THE CITY OF BROOKLYN CENTER FOR THE CALENDAR YEAR 2011 AND 2012 6h. RECEIVE 2011 NOTICE FROM HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY (HRA) 6i. APPLICATION AND PERMIT FOR TEMPORARY ON -SALE LIQUOR LICENSE SUBMITTED BY CHURCH OF ST. ALPHONSUS, 7025 HALIFAX AVENUE NORTH, FOR AN EVENT TO BE HELD MARCH 12, 2011 Motion passed unanimously. 7. PRESENTATIONS / PROCLAMATIONS /RECOGNITIONS/DONATIONS 7a. BROOKLYN CENTER ROTARY — DONATION TO CENTENNIAL CELEBRATION COMMITTEE Cathy Ballot, on behalf of the Brooklyn Center Rotary, presented a $1,000 donation in support of the Centennial Celebration. Mayor Willson accepted the check on behalf of the City and asked Ms. Ballot to convey the City's deep appreciation for this generous donation. Councilmember Lasman moved and Councilmember Ryan seconded to gratefully accept the donation from the Brooklyn Center Rotary in support of the 2011 Centennial Celebration. Motion passed unanimously. 8. PUBLIC HEARINGS 8a. PROPOSED USE OF 2011 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS City Manager Curt Boganey introduced the item, discussed the history, and advised it is anticipated that federal funding for this program may be reduced or eliminated entirely. 02/14/11 -4- DRAFT EDA/HRA Specialist Tom Bublitz described how Community Development Block Grant (CDBG) funds are allocated, noting that last year the allocation was $203,588, and explained staff's recommendation is based on CDBG being funded to at least the 2010 allocation level. Mr. Bublitz explained that 70 percent of the allocation, $142,512, is required to be expended on programs and services directly benefitting low income persons and 15 percent of the allocation can be dedicated towards public service programs. The 2011 requests are as follows: Senior Community Services' Household Outside Maintenance for the Elderly (H.O.M.E.) Program of $14,000; Community Emergency Assistance Program (CEAP) of $10,000; HOME Line Tenant Advocacy Services of $7,000 and staff's recommendation to allocate $6,500; City of Brooklyn Center Neighborhood Stabilization/Code Enforcement Program of $150,000; and, Home Rehabilitation Program (rehabilitation of private property) of $23,088. He presented staff's recommendation that following the Public Hearing, the Council support the resolution. Deb Taylor, Chief Operating Officer of Senior Community Services, and Barb Jensen, H.O.M.E. Friends Program Boardmember, described the organization's mission and services provided to help seniors remain independent in their homes for as long as possible. They explained how funds are leveraged, many times over, through the efforts of volunteers and other organizations and thanked the Council for its support. Don Grant, representing CEAP, thanked the Council for its past support and reported how last year's investment was used to provide services and meals to the City's residents. He also described how funding was used to recruit and get volunteers and chore service workers and encouraged the Council to approve funding for 2011. Samuel Spade, attorney with the HOME Line Tenant Advocacy Program, reported on the number and types of calls received related to tenant issues. He stated they were happy to provide support for Brooklyn Center's residents and grateful for the Council's continued support. Mr. Boganey explained the Home Rehabilitation Program services are administered by Hennepin County for emergency repairs for income - qualified residents and the Neighborhood Stabilization/Code Enforcement program funds code enforcement officers. He advised that CDBG involves federal funds that are restricted to identified and qualified areas of the City. Councilmember Lasman moved and Councilmember Roche seconded to open the Public Hearing. Motion passed unanimously. Councilmember Lasman moved and Councilmember Ryan seconded to close the Public Hearing. Motion passed unanimously. 02/14/11 -5- DRAFT 1. RESOLUTION NO. 2011 -25 APPROVING PROJECTED USE OF FUNDS FOR 2011 URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND AUTHORIZING SIGNATURE OF SUBRECIPIENT AGREEMENT WITH HENNEPIN COUNTY AND ANY THIRD PARTY AGREEMENTS Councilmember Ryan moved and Councilmember Roche seconded to adopt RESOLUTION NO. 2011 -25 Approving Projected Use of Funds for 2011 Urban Hennepin County Community Development Block Grant Program, Authorizing Signature of Subreceipient Agreement with Hennepin County and any Third Party Agreements. Motion passed unanimously. 8b. PALMER LAKE EAST NEIGHBORHOOD IMPROVEMENTS Director of Public Works /City Engineer Steve Lillehaug introduced the item and presented the proposed neighborhood improvements that included roadway, storm drainage, and utility improvements for the Palmer Lake East neighborhood. On January 24, 2011, the Council received the feasibility report and ordered the Public Hearing scheduled for tonight. He noted the comments received regarding this project have been provided to the Council. Mr. Lillehaug advised of the considerations before the Council following the Public Hearings and opportunity for affected property owners to make comment and/or file an appeal. He reported that no appeals were received prior to the meeting. However, if an assessment is appealed during the Public Hearing tonight, staff recommends it be referred to staff for review and hearing at a subsequent meeting with only that objected assessment being removed from the assessment roll. Mr. Lillehaug stated the total project is estimated to cost $7,338,000 and would be funded from special assessments, water utility, sanitary sewer utility, storm drainage utility, street light utility, and the street reconstruction fund. He displayed a map depicting the proposed assessment area, noting several properties not proposed to be assessed because they had been previously assessed. He advised that special assessments for single - family residential properties were calculated at $3,559 for street improvements and $1,068 for storm drainage improvements. The multi - family property at 6915 Humboldt Avenue North has been calculated based on unit assessments prorated per lot area, as detailed in the final pending assessment roll. He advised of payment options and preliminary project schedule. Councilmember Ryan noted the size of this project is twice as large as what is usually undertaken. Mr. Lillehaug budget planning, the Council approved explained that du g, pp g P g g P advancing a portion of this area and combining it with this project for completion in 2011. The objective was to capture lower construction costs given the poor economic environment. Councilmember Lasman moved and Councilmember Ryan seconded to open the Public Hearing. Motion passed unanimously. 02/14/11 -6- DRAFT Heidi Winters, 2107 71" Avenue N., asked how the project is funded, noting a lot of property remains vacant, and who pays for tree removal. She did not believe this project was needed at this time and questioned how the City justified spending money it does not have. Mayor Willson explained that tree removal costs are included in the project and even if property is vacant it is owned by someone and will be assessed for the improvement. Ms. Winters stated she works three jobs and is not able to come up with another $100 a month for the assessments so she supported delaying this project. Sean High, 7001 Morgan Avenue N., asked if seniors who have lived in their house for years and receive only a certain amount of government money can be in danger of losing their house if they don't have enough money to pay for their taxes. Mayor Willson explained he is unable to answer this broad question because it could depend on many different situations. Lila Froberg, 7100 Logan Avenue N., asked if the sewer lines that are located between property lines will be reconstructed. Mayor Willson explained an easement exists for sewer lines and if the lines need to be replaced, it will be done with this project. Ms. Froberg stated she wanted to be sure the sanitary lines are updated and not left for a future project since it would be very expensive to make sewer repairs under a smaller project. Martha Pedersen, 7230 Morgan Avenue N., stated she visited 20 homes on Morgan Avenue N. with a petition on the reconstruction and 18 of the 20 homes signed the petition. She asked if such a petition can stop the reconstruction of Morgan Avenue N. Mayor Willson stated the Council can make that decision but noted it has been supportive of the reconstruction program for the last 18 years. He explained the City has a 30 -year reconstruction program to assure the integrity of its infrastructure and limit the potential for water and sewer line breaks. Ms. Pedersen asked if there is no sense then in continuing to circulate the petition. Assistant City Attorney Mary Tietjen advised that under the State statute, this petition can be taken under consideration by the Council and given the weight the Council feels it deserves. With respect to submitting a specific objection to an assessment, each individual property owner would have to do that on his or her own behalf, not through a petition process. If a resident wished to object to the proposed special assessment to preserve their right to move forward with an appeal, the property owner would need to submit a written objection to the assessment tonight. Ms. Pedersen asked when the petition needs to be considered. Mayor Willson stated it would have to be submitted tonight. Ms. Pedersen stated she supports delaying the project due to the economic times for all in the neighborhood. Councilmember Roche thanked Sean High for his question and participating in the Public Hearing. He explained how the Council represents all property owners, noting residents have a responsibility to the community to pay taxes and the fundamental job of government is to preserve and maintain its infrastructure. Donna Morrison, 7218 Morgan Avenue N., explained she had moved to this house from six blocks east where an assessment was proposed but never happened. She questioned the urgency in the Palmer Lake neighborhood for this project. Mayor Willson advised that the City's website 02/14/11 -7- DRAFT includes documentation that identifies each neighborhood and when it will be reconstructed. Ms. Morrison stated that while she agreed with improving infrastructure, there are a lot of foreclosures and vacant homes in this neighborhood and asked how this improvement stabilizes the neighborhood. Mayor Willson noted that even foreclosures are owned by someone and everyone in the City is dependent on the infrastructure. Councilmember Ryan explained that about 18 years ago, a comprehensive Street and Utility Reconstruction Plan was developed that first addressed areas of the greatest deterioration. Since much of the City's infrastructure was constructed within a short period of time, much still needs to be reconstructed so it is important to stay on track with the Plan's schedule. He noted it is a core responsibility of the City to assure these systems work and if projects are discontinued for one year, future projects would then be delayed and create in a greater chance of water or sanitary sewer line failures. Councilmember Ryan noted the City uses franchise fees and utility funds to accumulate a fund balance to cover 75 percent of the project costs with only 25 percent being assessed. He stated that he has personally experienced downsizing and feels for those seeing this assessment as an extraordinary expense at this time. Karen Beelen, 7120 Logan Avenue N., stated her appreciation for the Council and staff s work with this program and to make the quality of neighborhoods better. She explained that about 30 years ago, sewer had backed up into her home and it is awful experience so she would encourage people who do not realize the importance of infrastructure. With regard to concerns expressed about paying for the assessment, she asked if the Council can waive the six percent interest cost for those who are at the poverty income level. Mayor Willson explained that the City bonds for project dollars and then pays the bonds from assessment payments. If the Council forgave interest, it would result in other taxpayers having to subsidize those assessments. Lorine Sandridge, 7231 Newton Avenue N., stated she works three jobs and has a $1,400 mortgage payment for a home she has been in for 16 years. She expressed her concern with the economic times, for people who are out of work, and the struggle of paying mortgages and trying to keep children fed. She noted the City is funding programs so seniors can stay in their homes but seniors and others may be losing their homes because they can't pay for this assessment. In addition, the City is putting pressure on residents by compounding two projects and doing them now so they don't have time to sell their homes. Ms. Sandridge stated most of the homes in her neighborhood are vacant, which causes problems and attracts vandals, and her children are growing up in that type of environment. She said she can't be worried about people in the future when she is struggling right now and stated she does not think the Council sees what's happening. Gregory Hoffman, 1600 72 Avenue N., stated he understands infrastructure needs to be maintained and that in the long run it will cost more money if the systems break down. He asked if the project will increase property values. Mayor Willson asked what happens with property values if the City does not maintain the infrastructure. Tim High, 7001 Morgan Avenue N., stated he believes this country is great because of its infrastructure and that this project is probably necessary but asked if it is necessary to this level or could be reduced by 15 percent. He also asked if additional funding could reduce assessments 02/14/11 -8- DRAFT to a more reasonable level for struggling property owners. Mr. High felt six percent interest was high considering the current low prime interest rate. Mayor Willson explained if the City finds additional funding for this project, it would then have to back pay other neighborhoods that have been assessed and paid their share. He noted the City has an AA bond rating because of its sound financial condition, which plays a key role in bonding to pay for projects. Mayor Willson stated it costs the City, on an annual basis, to maintain its infrastructure, the Council has made consistent and fair decisions, and proposes to assess only 25 percent, which is a good rate when considering the percentage assessed by other communities. Councilmember Ryan advised that six percent interest is set by policy based on financing cost to the City and while he wished the City could offer residents no interest, it is not possible. He stated the Council is not trying to force hardship on residents and he felt the cost per month on the house payment will be more manageable than residents may think. Yvette Ford, 7145 Unity Avenue N., stated she is a fan of infrastructure, understands the need for the project, and had attended to hear comments from fellow taxpayers. Jeanne Peterson, 5441 72 Circle, asked about deferral of assessments for homesteaded property owned by persons 65 years or older or due to disability and based on the resident's income. Ms. Tietjen stated there is a provision in State law to allow deferral for senior citizens in certain financial situations. That consideration is separate from the written objection process. Stephanie High, 7001 Morgan Avenue, asked if residents can negotiate with the contractor to get their driveway reconstructed and combine their driveway projects to get a better price. Mayor Willson explained that is an option and would be an arrangement between the property owner, and contractor. Councilmember Lasman suggested residents interested in that option contact the City Engineer to obtain contractor contract information. Mary Lahaie, 5416 72 Circle, asked about repair of sewers located under privately -owned streets. Mayor Willson stated the Unity Avenue project will be considered next. Colleen Fuehrer, 7030 Morgan Avenue N., asked about completion of the driveway aprons and blacktop. Mayor Willson stated the contractor will work with residents to accommodate their need for access and return the road to a useable state at the end of each work day. However, this project will still take time to complete and be an inconvenience for the summer. Ms. Fuehrer also asked about the mailboxes, garbage truck access, and cost to remove trees, if needed. Mayor Willson stated if mailboxes need to be relocated, the contractor will do so and replace them when the project is done, garbage trucks will have access during the project, and water /sewer service will not be interrupted. If a tree has to be removed, it will be paid with the project cost and replaced with a 6 -10 foot high tree. Ms. Fuehrer noted the deferral program is not just for seniors but also for people with disabilities who are income qualified. Mr. Lillehaug stated that is correct and interested residents can contact him for State Statute requirements. Elijah Komre, 7137 Morgan Avenue N., stated he already pays property taxes and monthly water and sewer bills and asked what is being done with that money. 02/14/11 -9- DRAFT Councilmember Lasman moved and Councilmember Ryan seconded to close the Public Hearing. Motion passed unanimously. 1. RESOLUTION NO. 2011 -26 ORDERING IMPROVEMENTS AND AUTHORIZING PREPARATION OF PLANS AND SPECIFICATIONS FOR IMPROVEMENT PROJECT NOS. 2011-01,02,03, AND 04, PALMER LAKE EAST NEIGHBORHOOD STREET, STORM DRAINAGE AND UTILITY IMPROVEMENTS Councilmember Lasman asked about the deferment program. Mr. Lillehaug explained a deferral can be considered at any time and does not need to be requested tonight. Councilmember Lasman moved and Councilmember Roche seconded to adopt RESOLUTION NO. 2011 -26 Ordering Improvements and Authorizing Preparation of Plans and Specifications for Improvement Project Nos. 2011 -01, 02, 03, and 04, Palmer Lake East Neighborhood Street, Storm Drainage and Utility Improvements. Motion passed unanimously. 2. RESOLUTION NO. 2011 -27 CERTIFYING SPECIAL ASSESSMENTS FOR IMPROVEMENT PROJECT NOS. 2011 -01 AND 2011 -02, PALMER LAKE EAST NEIGHBORHOOD STREET AND STORM DRAINAGE IMPROVEMENTS TO THE HENNEPIN COUNTY TAX ROLLS Councilmember Lasman moved and Councilmember Ryan seconded to open the Public Hearing. No one appeared to speak. Councilmember Roche moved and Councilmember Ryan seconded to close the Public Hearing. Mr. Boganey clarified for the audience that this Public Hearing is for anyone who wants to go on record to object to their assessment. Councilmember Roche moved and Councilmember Ryan seconded to reopen the Public Hearing. Donna Morrison, 7218 Morgan Avenue N., stated she officially objected to the assessment. Mr. Lillehaug asked that residents identify the reason for their objection so staff is able to conduct further research. Ms. Tietjen clarified that if residents wish to preserve their right to legally challenge the assessment in court, which is an option under State law, the resident needs to verbally object and leave a signed written objection with the City Engineer so it is part of the record. 02/14/11 -10- DRAFT Martha Pedersen, 7230 Morgan Avenue N., stated she objects to the assessment due to impact to trees and the cost of the assessment. Colleen Fuehrer, 7030 Morgan Avenue N., asked if she has 30 days to appeal. Ms. Tietjen advised that if the Council adopts the assessment roll tonight and a property owner wishes to appeal the assessment and challenge it in court, the property owner has 30 days to serve the City Clerk or Mayor with notice saying they intend to appeal the assessment. After that 30 days, the resident has 10 days to file that appeal in District Court. If the resident wishes to be represented by a lawyer they would have to pay that cost. Councilmember Roche moved and Councilmember Ryan seconded to close the Public Hearing. Councilmember Roche moved and Councilmember Ryan seconded to adopt RESOLUTION NO. 2011 -27 Certifying Special Assessments for Improvement Project Nos. 2011 -01 and 2011 -02, Palmer Lake East Neighborhood Street and Storm Drainage Improvements to the Hennepin County Tax Rolls. Motion passed unanimously. 0 o a p Y• 8c. UNITY AVENUE NEIGHBORHOOD IMPROVEMENTS Mr. Lillehaug detailed the actions before the Council and presented the proposed Unity Avenue neighborhood improvements that included roadway improvements and miscellaneous utility improvements. He stated that while the subgrade is in good condition, the pavement had deteriorated and was in need of reconstruction. Mr. Lillehaug described the proposed street improvements and how staging will assure a shorter period of disturbance and lessen impacts. He advised the estimated project cost is $424,000 and will be funded through special assessments, water utility, sanitary sewer utility, storm drainage utility, street light utility, and the street reconstruction fund. He described the zoning mixture of residential properties and stated the preliminary assessment roll is calculated at $644.07 per unit. He reviewed the available methods of payment and presented the proposed time table. Councilmember Lasman moved and Councilmember Ryan seconded to open the Public Hearing. Motion passed unanimously. Mary Lahaie, 5416 72 Circle, asked if the sewer lines were also checked for homeowner associations. Mr. Lillehaug stated sewer and water lines are City owned even if under private roads and he will confirm that they were inspected. Ms. Lahaie asked if the City would improve the sewer system down each street, if needed in the future, and assess the association as a whole. Mr. Lillehaug explained that in the future when utilities need replacement, there would be special assessments for the streets and the utilities would be funded as considered with the Palmer Lake East project. 02/14/11 -11- DRAFT Ms. Lahaie asked how residents receive notice if they are not at home when the certified letter is delivered. Mr. Lillehaug stated that some certified letters were returned so staff tried to contact the property owner individually. In addition, staff has a list of addresses for "snowbirds." Yvette Ford, 7145 Unity Avenue, indicated residents appreciate the speed bumps because Unity Avenue is used as a cut - through thoroughfare by vehicles that speed. She asked if the speed bumps will be replaced and can be made even higher. She relayed how helpful staff member Julie Hanson had been to patiently answer her questions and provide requested information. Councilmember Roche moved and Councilmember Ryan seconded to close the Public Hearing. Motion passed unanimously. 1. RESOLUTION NO. 2011 -28 ORDERING IMPROVEMENTS AND AUTHORIZING PREPARATION OF PLANS AND SPECIFICATIONS FOR IMPROVEMENT PROJECT NO. 2011 -05, UNITY AVENUE STREET IMPROVEMENTS Councilmember Lasman moved and Councilmember Ryan seconded to adopt RESOLUTION NO. 2011 -28 Ordering Improvements and Authorizing Preparation of Plans and Specifications for Improvement Project No. 2011 -05, Unity Avenue Street Improvements. Motion passed unanimously. 2. RESOLUTION NO. 2011 -29 CERTIFYING SPECIAL ASSESSMENTS FOR IMPROVEMENT PROJECT NOS. 2011 -05, UNITY AVENUE STREET IMPROVEMENTS TO THE HENNEPIN COUNTY TAX ROLLS Councilmember Roche moved and Councilmember Ryan seconded to open the Public Hearing. Motion passed unanimously. No one appeared to speak. Councilmember Roche moved and Councilmember Lasman seconded to close the Public Hearing. Motion passed unanimously. Councilmember Lasman moved and Councilmember Roche seconded to adopt RESOLUTION NO. 2011 -29 Certifying Special Assessments For Improvement Project No. 2011 -05, Unity Avenue Street Improvements to the Hennepin County Tax Rolls. P P Motion passed unanimously. 9. PLANNING COMMISSION ITEMS 02/14/11 -12- DRAFT 9a. PLANNING COMMISSION APPLICATION NO. 2011 -001 SUBMITTED BY GEORGE OGBONNA FOR THE UMUNNE CULTURAL ASSOCIATION FOR SPECIAL USE PERMIT APPROVAL TO OPERATE AN EVENT CENTER AT 5939 JOHN MARTIN DRIVE Director of Business and Development Gary Eitel provided an overview of Planning Commission Application No. 2011 -001 and advised the Planning Commission unanimously recommended approval of the application at its January 27, 2011, meeting subject to five conditions. He reviewed the parking requirements, available on -site parking, and determination of building occupancy. Mr. Eitel stated that George Solomon, representing Jani King, expressed concern at the Public Hearing about snow plowing and maintenance of the narrow parking strip and had met with the applicant several times since then to resolve those concerns. Councilmember Roche moved and Councilmember Ryan seconded to approve Planning Commission Application No. 2011 -001 subject to five conditions of the Planning Commission: 1. The maximum occupancy of the building is identified as a condition of the Special Use Permit i.e., 357 or the maximum occupancy allowed by the building code, whichever is P Y less. 2. This Special Use Permit is subject to all applicable codes, ordinances and regulations. Any violation, thereof, may be grounds for revocation. 3. Tenant improvement plans are subject to review and approval by the Building Official • with respect to applicable codes through the building permit process, including a new Sewer Availability Charge determination by Metro Council. 4. The necessary permits for food preparation and servicing must be received from Hennepin County Health Department prior to the issuance of Permits. 5. Special Use Permit approval is exclusive of all signery which is subject to the provisions of Chapter 34 of the City Ordinances. Motion passed unanimously. 10. COUNCIL CONSIDERATION ITEMS 10a. HEARING FOR KELLY MCDOLE, 7219 MAJOR AVENUE NORTH, REGARDING POTENTIALLY DANGEROUS DOG DECLARATION Mr. Boganey introduced the item, discussed the history, and presented the decision and findings of the Animal Control Review Panel that there was sufficient evidence to declare Mr. McDole's dog a potentially dangerous dog. He noted this item was tabled at the last meeting since the appellant was unable to attend due to his work related schedule. Councilmember Lasman moved and Councilmember Ryan seconded to remove this item from the table. Motion passed unanimously. 02/14/11 -13- DRAFT I Councilmember Ryan moved and Councilmember Roche seconded to open the hearing. Motion passed unanimously. Kelly McDole, 7219 Major Avenue N., appellant, thanked the Council for tabling consideration until he could attend to provide testimony. He stated the City's ordinance contains a provision for an unprovoked attack, noting provocation to an animal can be intentional or unintentional. Mr. McDole stated that immediately following the incident, Mr. Nelson had stated, "I'm sorry, I did not know the dog was right behind me and when I stuck out my hand, he bit me." However, Mr. Nelson made a different statement to the CSO. Mr. McDole voiced concern about lack of investigation and indicated he had waited three weeks before getting a copy of the police report but it still contained no follow up information. Mayor Willson stated he is a member of the Animal Control Review Panel which had considered facts presented that evening, a dog bite had been inflicted that required stitches. He noted the Code is clear about an unprovoked bite' of a human and supported the determination of potentially dangerous dog declaration. Councilmember Ryan noted Mr. McDole was in his garage when the incident occurred so he did not observe it. Mr. McDole stated that is correct and described what had happened. Councilmember Ryan pointed out that the fact remains that a person was bitten and the Ordinance language is clear. Ms. Tietjen advised that under the ordinance, a potentially dangerous dog is one that inflicts a • bite that is unprovoked and Mr. McDole has indicated his dog may have been provoked but not intentionally. She explained it was within the ability of the Council to reverse the Panel's decision if it believed Mr. McDole had provided evidence to that provocation. Councilmember Roche commented that it is not uncommon for someone who is bitten to not file a police report right away due to a delayed reaction. Mr. McDole stated he telephoned Mr. Nelson, an 80- year -old man, to ask about his new statement but when Mr. Nelson returned the telephone call he described an insurance payment involving a car accident and remained confused even after Mr. McDole explained the purpose of his call. Councilmember Lasman read the definition of "provocation" as contained in the Ordinance. She noted the report indicates Mr. Nelson had turned around when he saw the dog coming at him, put his hand out for protection, and the dog bit his hand. She stated that is not "provocation" and you would not reasonably expect that act to provoke a bite since it was a defensive measure. Councilmember Ryan requested a legal opinion on the incident report. Ms. Tietjen advised that it is reasonable for the Panel and Council to rely on statements taken by the police as being accurate and truthful. She stated she understands that Mr. McDole thinks it is unfair; however, it is assumed Mr. Nelson had portrayed the incident as it happened. Councilmember Ryan stated this record is what the Council has to base its judgment upon and if a formal court hearing, Mr. Nelson would be present to respond to a challenge. Ms. Tietjen noted that Mr. McDole is 02/14/11 -14- DRAFT it providing testimony tonight and the Council can consider that information and weigh it along with the evidence. Mr. Boganey asked Mr. McDole if the same situation occurred, would the dog bite again. Mr. McDole stated possibly but not necessarily since it would depend on the person's reaction to the dog. He asserted there is no way to predict with any animal, even in the exact same situation, but he believed an aggressive dog would continue to attack. Councilmember Lasman moved and Councilmember Roche seconded to close the Hearing. Motion passed unanimously. The Council considered the police report indicating that Mr. Nelson was delivering door hangers for his church, not an activity that could be considered as provocation and noted that in six months, if there are no repeated incidents, then that designation could be reviewed by the Animal Control Review Panel. The Council acknowledged it was also responsible to consider the issue of public safety. Councilmember Roche moved and Councilmember Lasman seconded to uphold the decision and findings of the Animal Control Review Panel. Motion passed unanimously. 10b. RESOLUTION NO. 2011 -30 MAKING FINDINGS OF FACT AND ORDER RELATING TO HUMBOLDT SQUARE APARTMENTS (6737 AND 6743 HUMBOLDT AVENUE NORTH) Mr. Boganey introduced the item, discussed the history, and stated the purpose of the proposed resolution. It was noted the Council had heard the testimony at its January 24, 2011, meeting regarding alleged violations, specifically related to delinquent property taxes in the amount of $2,240 and City utilities in the amount of $3,586.73. As directed, staff prepared a resolution making findings of fact and order to revoke the rental dwelling license issued to Tim and Mary Jo Keenan for Humboldt Square Apartments for a period of six months. Councilmember Lasman moved and Councilmember Ryan seconded to approve RESOLUTION NO. 2011 -30 Making Findings of Fact and Order Relating to Humboldt Square Apartments (6737 and 6743 Humboldt Avenue North). Motion passed unanimously. 10c. RESOLUTION NO. 2011 -31 MAKING FINDINGS OF FACT AND ORDER RELATING TO BROOKHAVEN APARTMENTS (3907, 3909, AND 3911 65 AVENUE NORTH) Mr. Boganey introduced the item, discussed the history, and stated the purpose of the proposed resolution. He noted the Council had heard the testimony at its January 24, 2011, meeting 02/14/11 -15- DRAFT regarding alleged violations, specifically related to delinquent property taxes in the amount of $63,698.17 and City utilities in the amount of $9,953.26. As directed, staff prepared a resolution making finds of fact and order to revoke the rental dwelling license issued to Hyder Jaweed for Brookhaven Apartments (3907, 3909, and 3911 65 Avenue N) for a period of one year. Councilmember Roche moved and Councilmember Lasman seconded to approve RESOLUTION NO. 2011 -31 Making Findings of Fact and Order Relating to Brookhaven Apartments (3907, 3909, and 3911 65 Avenue North). Councilmember Ryan stated his support for the recommended one -year revocation since the period of revocation is in relation to the extent of violation. Motion passed unanimously. 10d. AMEND 2011 CITY COUNCIL MEETING SCHEDULE Mr. Boganey introduced the item to amend the 2011 City Council meeting schedule to add a joint meeting with City advisory commissions and the Charter Commission on Wednesday, April 6, 2011, at 6:00 p.m., in Constitution Hall, Community Center. Councilmember Lasman moved and Councilmember Ryan seconded to amend the 2011 City Council meeting schedule as requested. Motion passed unanimously. 10e. AN ORDINANCE AMENDING AND REPEALING CERTAIN SECTIONS OF CHAPTER 23 RELATING TO TATTOO AND BODY PIERCING ESTABLISHMENTS Mr. Boganey introduced the item, discussed the history, and stated the purpose of the proposed Ordinance amendment to divest the City from the expense of licensing tattoo and body piercing establishments, but to regulate the location through the Zoning Ordinance. Councilmember Roche moved and Councilmember Ryan seconded to approve first reading of an Ordinance Amending and Repealing Certain Sections of Chapter 23 Relating to Tattoo and Body Piercing Establishments and set second reading and Public Hearing for March 14, 2011. Motion passed unanimously. 10f. (FORMERLY ITEM NO. 6f) RESOLUTION NO. 2011 -32 CALLING FOR A PUBLIC HEARING ON A MODIFICATION TO THE REDEVELOPMENT PLAN FOR HOUSING DEVELOPMENT AND REDEVELOPMENT PROJECT NO. 1, ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 5, AND THE ADOPTION OF A TAX INCREMENT FINANCING PLAN 02/14/11 -16- DRAFT Councilmember Roche explained that he had requested this item be removed from the Consent Agenda to assure transparency since most of the discussion had occurred during Work Sessions. He noted this action is one of the components that will help redevelop the Brookdale Mall site. Mr. Boganey stated this action will create a TIF district to facilitate the redevelopment of Brookdale Mall and schedule a Public Hearing on March 28, 2011, at 7:00 p.m. He advised that a presentation will be given during the Public Hearing. Councilmember Roche moved and Councilmember Lasman seconded to adopt RESOLUTION NO. 2011 -32 Calling for a Public Hearing on a Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1, Establishment of Tax Increment Financing District No. 5, and the Adoption of a Tax Increment Financing Plan. Motion passed unanimously. 11. COUNCIL REPORT Councilmember Roche noted this is the City's Centennial year and reported on a celebration event this Thursday, 6:30 p.m., at the high school, when a large chorus of elementary school children will sing "Happy Birthday to Brooklyn Center." Councilmember Lasman reported on her attendance at the following: • January 27 and February 3, 2011, Special Events Committee meetings to prepare for the Brooklyn Center birthday party event held February 5, 2011. She noted that Pastor Icenogle was correct that it was 100 years ago tonight when voting took place and a law was passed incorporating Brooklyn Center into a village. • February 2, 2011, Centennial meeting, which will be ongoing throughout the year and culminate with Holly Sunday. • February 5, 2011, Brooklyn Center birthday parry. • February 13, 2011, Centennial Splash Event at the Community Center. Councilmember Kleven reported on her attendance at the following: • January 27, 2011, Shingle Creek Watershed wetland improvement project informational meeting. • January 27, 2011, Planning Commission meeting. • February 5, 2011, Centennial Dinner celebrating the City's 100 birthday. • February 6, 2011, waffle breakfast at the high school. • February 13, 2011, Centennial Splash event at the Community Center. Councilmember Kleven reminded that February is Heart Month and residents can get free heart pins at the Community Center until the end of the month. Councilmember Ryan reported on his attendance at the following: • February 5, 2011, the City's 100 year birthday party at the Earle Brown Heritage Center, which was a great success. He thanked City staff, Chief Coordinator Sue LaCrosse, and the 02/14/11 -17- DRAFT Events Committee and commented on the number of proclamations that were read, including one declaring February 5, 2011, as Brooklyn Center Day in the State of Minnesota. Mayor Willson reported on his attendance at the following: • January 28, 2011, Chaired the last Visit Minneapolis North committee meeting at Crowne Plaza. • February 2, 2011, Centennial Committee meeting. • February 3, 2011, Special Events meeting. • February 5, 2011, Brooklyn Center's 100 year birthday party. • February 6, 2011, Lions waffle breakfast. • February 9, 2011, North Metro Mayor's board meeting along with Mr. Boganey. • February 14, 2011, read to Northport Elementary School students. Mayor Willson noted that on January 1, 2011, an American Flag was flown over the United States Capitol and presented to the City by Representative Paulsen along with a plaque. Mayor Willson announced that from February 10 -13, 2011, the Luther Family of dealerships will prepare one -half a million meals for distribution at the Dodge site. He advised of the number of volunteers involved with this event that included almost the entire Police Department and their families. Mayor Willson recognized the Luther family and dealerships for this contribution to Brooklyn Center. Mayor Willson advised of a card he received from Peter and Linda Berglund, 5408 Dupont • Avenue N., thanking the City for the wonderful job done on 57 and County Road 10 street improvement project. 12. ADJOURNMENT Councilmember Lasman moved and Councilmember Ryan seconded adjournment of the City Council meeting at 10:10 p.m. Motion passed unanimously. Is 02/14/11 -18- DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA WORK SESSION FEBRUARY 14, 2011 CITY HALL — COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work Session called to order by Mayor/President Tim Willson at 10 :22 p.m. ROLL CALL Mayor/President Tim Willson and Councilmembers /Commissioners Carol Kleven, Kay Lasman, Tim Roche, and Dan Ryan. Also present were City Manager Curt Boganey, Public Works Director /City Engineer Steve Lillehaug, Assistant City Manager/Director of Building & Community Standards Vickie Schleuning, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. JUNK AND INOPERABLE VEHICLES UPDATE — BACK YARD PARKING Assistant City Manager/Director of Building & Community Standards Vickie Schleuning provided background information and code amendments made to effect junk/inoperable vehicle parking and storage. She described the need for coordination of standards to prevent unintended consequences and asked if there should be a mechanism for public feedback and to analyze and appropriately address situations. Ms. Schleuning summarized existing vehicle - related violations, options to determine front yard area, and vehicle location/surface requirement. The City Council/EDA discussed whether to require upgrade of driveways as part of street reconstruction projects and indicated support for a phased approach. Ms. Schleuning stated that non - improved driveways could be grandfathered with a future date determined when compliance would be required. Another option is to adopt driveway maintenance standards and require Code compliance if the driveway is changed or not properly maintained. Mr. Boganey commented on the need to assure equal protection so residents in similar circumstances are treated the same. Ms. Schleuning displayed pictures depicting examples of parking locations. The City Council/EDA discussed whether a boat, since it has a motor, would be defined as a "motorized vehicle" along with things like motorcycles and lawn mowers. Councilmember /Commissioner Kleven circulated pictures of parking violations. 02/14/11 -1- DRAFT The City Council/EDA discussed that the ordinance should regulate all outdoor storage, motorized or not, on at least a Class V gravel surface. The language should also regulate back yard storage because it can be viewed by neighbors and to define commercial vehicles. Ms. Schleuning advised that commercial vehicles are defined by weight. Councilmember /Commissioner Lasman noted that ordinances are enacted in response to problems and she is glad this matter is being revisited because the problem remains and has become more complex. She stated this amendment will resolve parking issues as well as other issues that will improve the neighborhood. Councilmember /Commissioner Ryan agreed there are usually a range of issues in locations of parking violations. He suggested establishing standards for parking surface and percentage of greenspace, which would result in limiting the size of the parking area. Councilmember /Commissioner Ryan noted some residents may object to the City imposing additional standards that involve extraordinary costs for some. He stated he likes a stepped approach, perhaps requiring that Class V driveways be maintained to an established standard, and determining a maximum number of vehicles allowed to be parked. Councilmember /Commissioner Roche stated his property had a Class V driveway for many years and he understands that this type of regulation will raise concerns by residents who have large driveways and own a number of vehicles. Councilmember /Commissioner Lasman supported language to grandfather those situations with a distant date established for compliance and a phased approach. The City Council/EDA discussed the scenario of a boat/trailer being parked on a residential yard and signed "For Sale." It was suggested that in this situation the enforcement officer could provide an informational flyer advising they had 30 days to display the boat/trailer for sale conditioned on maintaining the turf. Staff was encouraged to anticipate occasional circumstances where a variance from the standard could be considered. Ms. Schleuning advised there is discretionary enforcement, such as washing vehicles on the yard, and with regard to having a boat or vehicle for sale, the City Council/EDA has to consider if they would like everyone to do the same. Mr. Boganey cautioned that every discretionary variance from the standard creates an opportunity for abuse. Ms. Schleuning presented staff's recommendation to create a yard definition, green space requirements, and define parking surface. Staff does not recommend limiting the number of vehicles at this time, but it could be reconsidered if the desired results are not achieved from the amendments. The City Council /EDA acknowledged the importance of continued and consistent enforcement and asked staff to provide more definition and conduct an inventory analysis on the breadth and specificity of the problem for consideration at a future Work Session. . 02/14/11 -2- DRAFT PROGRESS REPORTS ON ACHIEVEMENT OF STRATEGIC GOALS Due to the late hour, this item was not addressed. ADJOURNMENT Councilmember /Commissioner Lasman moved and Councilmember /Commissioner Ryan seconded adjournment of the City Council/Economic Development Authority Work Session at 11:08 p.m. Motion passed unanimously. 02/14/11 -3- DRAFT City Council Agenda Item No. 6b 1 • COUNCIL ITEM MEMORANDUM DATE: February 22, 2011 TO: Curt Boganey, City Manager FROM: Maria Rosenbaum, Deputy City Clerk SUBJECT: Licenses for City Council Approval Recommendation: It is recommended that the City Council consider approval of the following licenses at its February 28, 2011, meeting. Background: The following businesses /persons have applied for City licenses as noted. Each business /person has fulfilled the requirements of the City Ordinance governing respective licenses, submitted appropriate applications, and paid proper fees. Applicants for rental dwelling licenses are in compliance with Chapter 12 of the City Code of Ordinances, unless comments are noted below the property address on the attached rental report. RENTAL See attached report. Alission: Ensuring an attractive, clean, safe community that enhances the duality of life and preserves the public trust COUNCIL ITEM MEMORANDUM Rental License Category Criteria Policy — Adopted by City Council 03 -08 -10 Property Code and Nuisance Violations Criteria License Category Number of Units Property Code Violations per (Based on Property Inspected Unit Code Only) Type I — 3 Year 1 -2 units 0 -1 3 -amts 0 -7 .., Type II — 2 Year 1 -2 units Greater than 1 but not more than 4 3+ amts Greater than ©, 7 brit nit more than; 5 Type III — 1 Year 1 - 2 units Greater than 4 but not more than 8 � y "' Greatef the 1 ,: bu aot re than; 3 Type IV — 6 Months 1 -2 units Greater than 8 units.. Greater Aft,, . License Number of Units Validated Calls for Disorderly Conduct Category Service & Part I Crimes (Calls Per Unit/Year) No Category 1 -2 0 -1 Impact 3 tiruts 0 =9' 5 or more units 0 -0.35 . Decrease 1 1 -2 Greater than 1 but not more than 3 Category 3 unfits ; ... , Gr`eat than2iut not mire than =l 5 or more units Greater than 0.35 but not more than 0.50 Decrease 2 1 -2 Greater than 3 Categories uni eater than �, 5 or more units Greater than 0.50 Budget Issues: There are no budget issues to consider. Mission: Ensuring an attractive, clean, safe cownuniip that enhances the quality of life and preserves the public trust i Ren a1ANl.r c p s :t�tn a� �br, f28 Rental Standards Prior to March 6, 2010 WK ct e�, ,na v���' rid• �y� r ���� •:•, r t� = �: z +3r •", '. •, o*- ,.•;�y�.-.' F`�'`.,. 1543 Humboldt PI N Single Family Initial Peter Imasuen 0 OK OK 6807 Quail Ave N Single Family Renewal Randall Johnson 1 OK OK Rental Licenses for Council Approval on February 28, 2011 Current Rental Standards Property ! Final Dwelling Renewal Code License Police License Unpaid Unpaid Property Address Type or Initial Owner Violations Type CFS * Type ** Utilities Taxes 3225 64th Ave N Single Family Initial Ron Huckabee 3 II N/A II OK OK 6124 Emerson Ave N Single Family Renewal Nicholas Lewis 1 1 0 1 OK OK 6401 Emerson Ave N Single Family Renewal Jennifer & Leif Ronken 0 1 0 1 OK OK 6007 Girard Ave N Single Family Renewal Ben Dossman IV 0 1 0 1 OK OK 7211 Girard Ave N Single Family Renewal Tommy Vang 0 1 1 1 OK OK 6436 Indiana Ave N Single Family Renewal Harry Narine 2 II 0 11 OK OK 5712 Logan Ave N Single Family Renewal Dwayne Meier 0 1 0 1 OK OK 5344 Twin Lake Blvd E Single Family Renewal Takasi Sibuya 0 1 0 1 OK OK 4318 Winchester La Single Family I Renewal IDeepak Nath 0 1 0 1 OK OK * CFS = Calls For Service for Renewal Licenses Only (Initial Licenses are not applicable to calls for service and will be listed N /A.) ** Final License Type Type I = 3 year Type II = 2 year Type III = 1 year Type IV = 6 mos �I • City Council Agenda Item No. 6c • • COUNCIL ITEM MEMORANDUM DATE: February 17, 2011 TO: Curt Boganey, City Manager FROM: Kelli Wick, Human Resources Director SUBJECT: RESOLUTION APPROVING THE LABOR AGREEMENT FOR LAW ENFORCEMENT LABOR SERVICES (LELS) LOCAL 86 (POLICE COMMANDERS AND SERGEANTS) AND THE CITY OF BROOKLYN CENTER FOR THE CALENDAR YEARS 2011 - 2012 Recommendation: It is recommended that the City Council adopt resolution approving the labor agreement between the City of Brooklyn Center and Law Enforcement Labor Services (LELS) Local 86 for the period January 1, 2011— December 31, 2012. Background: The current contract with LELS 86 (Police Commanders and Sergeants) expired on December 31, 2010. The City and the Union have met and negotiated in good faith to reach a settlement on all issues of concern. This labor agreement covers police commanders and police sergeants for a total of nine employees. The attached agreement has been approved by a vote of the members and upon adoption by the City Council will establish wages and working conditions for years 2011 and 2012. The Articles affected by these negotiations include the following: Article 26 — Vacation Strike language in 26.4 and replace with: Employees may accrue a maximum of two hundred thirty (230) hours of vacation leave. No more than two hundred thirty (230) hours can carry over from year to year. Article 28 — Insurance Increase the insurance contribution by $32 to $890. Also, provide an incentive of $80 for those employees participating in a high deductible health plan. Re- opener to discuss 2012 insurance contributions. Article 29 — Wage Rates Zero (0 %) increase for 2011. Existing scheduled pay steps will be processed accordingly. Two (2 %) increase January 1, 2012 Market adjustment of $.50/hour on January 1, 2012 for Sergeants (six employees). Market adjustment of $1.50/hour on January 1, 2012 for Commanders (three employees). :'fission: Ensuring an attractive. clean, safe community Char enhances the quality of life wrist preserres thew blic trust COUNCIL ITEM MEMORANDUM Article 36 — Duration Two year labor agreement January 1, 2011— December 31, 2012. Budget Issues: The cost of the increase in the City's insurance contribution equals $12,096 if all employees elect a high deductible health plan. The estimated cost of the step movements is $3,298. The proposed 2011 budget appropriates sufficient funds to cover this expense. In 2012 the cost of the 2% and the $.50/hour market adjustment for the Sergeants will cost approximately $19,260. The 2% and $1.50/hour market adjustment for the Commanders will cost approximately $17,829. The insurance contribution will be negotiated in 2012. The 2012 adopted budget will need to accommodate these increases. Council Goals: Ongoing: 1. We will provide streamlined, cost effective, quality services with limited resources Mission: Ensuring an attractive. clean, safe commuidi that enhances the quality of life atiti preseri es t/re pttlilic trtr.st February 3, 2011 Adam Burnside, Business Agent Law Enforcement Labor Services, Inc. 327 York Avenue St. Paul, MN 55130 Dear Mr. Burnside: Listed below are the changes we've discussed for the tentative labor agreement for 2011. Article 26, Vacation Agree to Strike 26.4 and replace with: Employees may accrue a maximum of two hundred thirty (230) hours of vacation leave. No more than two hundred thirty (230) hours can carry over from year to year. Article 28, Insurance Effective 1 /1 /11, the City will contribute payment of eight hundred ninety dollars ($890) per month per employee for use in participating in the City's insurance benefits. For 2011 employees electing to participate in a high deductible health plan will receive an incentive of $80 per month. Reopener for 2012. Article 29 — Wage Rates Zero (0 %) increase for 2011 Two (2 %) increase January 1, 2012 Market adjustment of $.50/hour on January 1, 2012 for Sergeants Market adjustment of $1.50/hour on January 1, 2012 for Commanders Article 36, Duration Agree to two year agreement effective 1 /l /11— 12/31/12. Article 33 - Retiree Health Savings Plan We'd like to correct the current language so the Plan is IRS compliant. We would like to review the language outside of these discussions and agree on a memo of understanding at a later date. Please let me know if you have any questions. Sincerely, Kelli Wick Human Resources Director cc: Steve Pastor, Union Steward Tony Gruenig, Union Steward Kevin Benner, Police Chief Curt Boganey, City Manager Negotiations 2011 LELS 86 updated 1/4/2011 City 2010 2011 Crystal 0% unknown Fridley going to arbitration Golden Valley 0% 1.50% Maplewood 3% (end of 2 year agreement) 0% New Hope 0% 1 % (tent) Richfield 0% 2% (tent) Roseville 2.95% (end of 3 yr agreement) 0% (tent) White Bear Lake 0% 0% i Member introduced the following resolution and moved its adoption: . RESOLUTION NO. RESOLUTION APPROVING THE CONTRACT FOR LAW ENFORCEMENT LABOR SERVICES (LELS) LOCAL 86 AND THE CITY OF BROOKLYN CENTER FOR THE CALENDAR YEARS 2011 AND 2012 WHEREAS, Section 2.07 of the City Charter for the City of Brooklyn Center states that the City Council is to fix the salary or wages of all officers and employees of the City; and WHEREAS, the City has negotiated in good faith with LELS Local 86 (Commanders /Sergeants) for a contract for the years 2011 - 2012 as attached. . NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center to authorize the Mayor and City Manager to execute the attached contract with LELS Local 86 (Commanders /Sergeants) for calendar years 2011 -2012 with such language changes as may be necessary to clarify any terms, provided such language changes do not change the substance or monetary compensation set forth in the attached contract. BE IT FURTHER RESOLVED that authorized wage and benefit adjustments shall become effective according to the schedule of the agreement which commences January 1, 201 L February 28, 2011 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. Master Labor Agreement Between City of Brooklyn Center And Law Enforcement Labor Services, Local Number 86 January 1, 2011- December 31, 2012 TABLE OF CONTENTS ARTICLE PAGE 1 Purpose of Agreement 1 2 Recognition 1 3 Definitions 1 4 Employer Security 1 5 Employer Authority 2 6 Union Security 2 7 Savings Clause 2 8 Constitutional Protection 2 9 Seniority 2 10 Work Schedules 3 11 Discipline 4 12 Employee Rights — Grievance Procedure 4 13 Overtime (Sergeant Classification) 6 14 Court Time 7 15 Call Back Time 8 16 Working Out of Classification 8 17 Standby Pay 8 18 Leaves of Absence 8 19 Severance 9 20 Injury on Duty 9 21 False Arrest Insurance 9 22 Training 9 23 Post License Fees 10 24 Uniforms 10 25 Holiday Leave 10 26 Vacation Leave 11 27 Sick Leave 11 28 Insurance 12 29 Wage Rates 13 30 Benefits for Retirees 13 31 Mileage and Expense Reimbursement 13 32 Light Duty 13 33 Retiree Health Savings Plan (RHSP) 13 34 Agreement Implementation 15 35 Waiver 15 36 Duration 16 ARTICLE 1- Purpose of Agreement This Agreement is entered into between the City of Brooklyn Center, hereinafter called the Employer, and Law Enforcement Labor Services, "Local No. 86 ", hereinafter called the Union. It is the intent and purpose of this Agreement to: 1.1 Establish procedures for the resolution of disputes concerning this Agreement's interpretation and/or application; and 1.2 Place in written form the parties' Agreement upon terms and conditions of employment for the duration of this Agreement. ARTICLE 2 - Recognition 2.1 The Employer recognizes the Union as the exclusive representative, under Minnesota Statues, Section 179A.03, Subdivision 6, for all police personnel in the following job classifications: Sergeant; Commander 2.2 In the event the Employer and the Union are unable to agree as to the inclusion or exclusion of a new or modified job class, the issue shall be submitted to the Bureau of Mediation Services for determination. ARTICLE 3 - Defmitions 3.1 Union: Law Enforcement Labor Services, "Local No. 86." 3.2 Union Member: A member of Law Enforcement Labor Services, "Local No. 86." 3.3 Department: The City of Brooklyn Center Police Department. 3.4 Employee: A member of the exclusively recognized bargaining unit. 3.5 Employer: The City of Brooklyn Center. 3.6 Chief: The Chief of the Brooklyn Center Police Department. 3.7 Union Officer: Officer elected or appointed by Law Enforcement Labor Services, "Local No. 86." 3.8 Overtime: Work performed at the express authorization of the Employer in excess of the employee's scheduled shift. 3.9 Scheduled Shift: A consecutive work period including rest breaks and a lunch break. 3.10 Rest Breaks: Period during the Scheduled Shift during which the employee remains on continual duty and is responsible for assigned duties. 3.11 Lunch Breaks: A period during the Scheduled Shift during which the employee remains on continual duty and is responsible for assigned duties. 3.12 Regular Base Pay Rate: The employee's hourly or monthly base pay rate. 3.13 Strike: Concerned action in failing to report for duty, the willful absence from one's position, the stoppage of work, slowdown, or abstinence in whole or in part from the full, faithful, and proper performance of the duties of employment for the purposes of inducing, influencing, or coercing a change in the conditions or compensation or the rights, privileges, or obligations of employment. ARTICLE 4 - Employer Security The Union agrees that during the life of this Agreement the Union will not cause, encourage, participate in, or support any strike, slowdown, or other interruption of or interference with the normal functions of the Employer. -1- ARTICLE 5 - Employer Authority 5.1 The Employer retains the full and unrestricted right to operate and manage all personnel, facilities, and equipment; to establish functions and programs; to set and amend budgets; to determine the utilization of technology; to establish and modify the organizational structure; to select, direct, and determine the number of personnel, to establish work schedules, and to perform any inherent managerial function not specifically limited by this Agreement. 5.2 Any term and condition of employment not specifically established or modified by this Agreement shall remain solely within the discretion of the Employer to modify, establish, or eliminate. ARTICLE 6 - Union Security 6.1 The Employer shall deduct the wages of employees who authorize such a deduction in writing an amount necessary to cover monthly Union dues. Such monies shall be remitted as directed by the Union. 6.2 The Union may designate employees from the bargaining unit to act as a steward and an alternate and shall inform the Employer in writing of such choice and changes in the position of steward and/or alternate. 6.3 The Employer shall make space available on the employee bulletin board for posting Union notice(s) and announcement(s). 6.4 The Union agrees to indemnify and hold the Employer harmless against any and all claims, suits, orders, or judgments brought or issued against the Employer as a result of any action taken or not taken by the Employer under the provisions of this Article. ARTICLE 7 - Savings Clause This Agreement is subject to the laws of the United States, the State of Minnesota, and the City of Brooklyn Center. In the event any provision of the Agreement shall be held to be contrary to law by a court of competent jurisdiction from whose final judgment or decree no appeal has been taken s Agreement " ed such provisions shall be voided. All other provisions of tlu gr within the time proved p p voided provision may be renegotiated shall continue in full force and effect. The o p y at the written g request of either party. ARTICLE 8 - Constitutional Protection Employees shall have the rights granted to all citizens by the United States and Minnesota Constitutions. ARTICLE 9 - Seniority 9.1 Seniority shall be determined by continuous length of service in the job classification covered by this Agreement. Employees promoted from the classification covered by this Agreement to a position outside the bargaining unit will continue to accrue seniority under this Agreement until the completion of their promotional probationary period or for no longer than twelve (12) months. The seniority roster shall be based on length of service in the job classification covered by this Agreement. Employees lose seniority under this Agreement under the -2- following circumstances: resignation, discharge for cause, or transfer or promotion to a classification not covered by this Agreement after completion of the promotional probationary period or for no longer than twelve (12) months after transfer or promotion. 9.2 There shall be an initial probationary period for new employees of twelve (12) months. During the probationary period, a newly hired or rehired employee may be discharged at the sole discretion of the Employer. During the probationary period a promoted or reassigned employee may be replaced in their previous position at the sole discretion of the Employer. 9.3 A reduction of work force will be accomplished on the basis of seniority. The Employer shall give the Union and the employees at least two (2) weeks written notice in advance of any layoff. Employees shall be recalled from layoff on the basis of seniority. An employee on layoff shall have an opportunity to return to work within two (2) years of the time of the layoff before any new employee is hired. 9.4 Senior qualified employees shall be given shift assignment preference after twelve (12) months of continuous full -time employment. Except as noted in the preceding sentence, shift assignments shall be bid on the basis of seniority at least annually in January and within 30 days of any permanent change in the work schedule. Employees will not be subject to shift rotation more often than every four (4) months. If a special assignment's position is created, assignment to such position shall be opened for bidding on the basis of seniority for up to a two-year assi ent in such position. A person shall not be eligible to bid or be assigned to Y � P P such special assignment position more often than two years out of any six continuous year periods. [A special assignment position is one out of the normal shift rotation with primary emphasis on patrol management.] 9.5 One continuous vacation period shall be selected on the basis of seniority until January 31 of each calendar year. 9.6 The Employer shall recognize seniority as the primary factor when authorizing holiday leave and compensatory time leave. 9.7 No time shall be deducted from an employee's seniority accumulation due to absences occasioned by an authorized leave with pay, any military draft or government call -up to Reserves or National Guard, or for layoffs of less than two (2) years in duration. ARTICLE 10 - Work Schedules 10.1 The normal work year is two thousand and eighty (2,080) hours to be accounted for by each employee through: a. hours worked on assigned shifts, b. holidays, C. assigned training, and d. authorized leave time. 10.2 Authorized leave time (including holiday hours) is to be calculated on the basis of the actual hours used for such leave based on the time that the employee would otherwise have been scheduled to work. -3- 10.3 Nothing contained in this or any other Article shall be interpreted to be a guarantee of a • minimum or maximum number of hours the Employer may assign employees. ARTICLE 11 - Discipline 11.1 The Employer will discipline employees for just cause only. Discipline will be in one or more of the following forms: a. oral reprimand; b. written reprimand; C. suspension; d. demotion; or e. discharge. 11.2 Suspension, demotions, and discharges will be in written form. 11.3 Written reprimands, notices of suspension, and notices of discharge which are to become part of an employee's personnel file shall be read and acknowledged by signature of the employee. Employees and the Union will receive a copy of such reprimands and/or notices. 11.4 Employees may examine their own individual personnel files at reasonable times under direct supervision of the Employer. 11.5 A single disciplinary action for failure to attend training, court or tardiness will be removed from the personnel file after 18 months if, during that time, the single incident of discipline for failure to attend training, court or tardiness, is the only occurrence of discipline during that 18 month period. 11.6 Discharges will be preceded by a five (5) day suspension without pay. 11.7 For purposes of discipline, a day will mean eight (8) hours. 11.8 Employees will not be questioned concerning an investigation of proposed disciplinary action against the employee being questioned unless the employee has been given an opportunity to have a Union representative present at such questioning. 11.9 Grievances relating to this Article shall be initiated by the Union in Step 3 of the grievance procedure under Article 12. ARTICLE 12 - Employee Rights — Grievance Procedure 12.1 Definition of a Grievance - A grievance is defined as a dispute or disagreement as to the interpretation or application of the specific terms and conditions of this Agreement. 12.2 Union Representatives - The Employer will recognize Representatives designated by the Union as the grievance representatives of the bargaining unit having the duties and responsibilities established by this Article. The Union shall notify the Employer in writing of the names of such Union Representatives and of their successors when so designated as provided by 6.2 of this Agreement. -4- 12.3 Processing of a Grievance - It is recognized and accepted by the Union and the Employer that the processing of grievances as hereinafter provided is limited by the job duties and responsibilities of the Employees and shall therefore be accomplished during normal working hours only when consistent with such Employee duties and responsibilities. The aggrieved Employee and a Union Representative shall be allowed a reasonable amount of time without loss in pay when a grievance is investigated and presented to the Employer during normal working hours provided that the Employee and the Union Representative have notified and received the approval of the designated supervisor who has determined that such absence is reasonable and would not be detrimental to the work programs of the Employer. 12.4 Procedure - Grievances, as defined by Section 12. 1, shall be resolved in conformance with the following procedure: Step 1. An Employee claiming a violation concerning the interpretation or application of this Agreement shall, within twenty -one (2 1) calendar days after such alleged violation has occurred, present such grievance to the Employee's supervisor as designated by the Employer. The Employer- designated representative will discuss and give an answer to such Step 1 grievance within ten (10) calendar days after receipt. A grievance not resolved in Step 1 and appealed to Step 2 shall be placed in writing setting forth the nature of the grievance, the facts on which it is based, the provision or provisions of the Agreement allegedly violated, the remedy requested, and shall be appealed to Step 2 within ten (10) calendar days after the Employer-designated resentative's final answer in Step 1. Any grievance not appealed in representative's writing to Step 2 by the Union within ten (10) calendar days shall be considered waived. written grievance shall be resented b Step 2 . If appealed, the gn p y the Union and discussed with the Employer - designated Step 2 representative. The Employer- designated representative shall give the Union the Employer's Step 2 answer in writing within ten (10) calendar days after receipt of such Step 2 grievance. A grievance not resolved in Step 2 may be appealed to Step 3 within ten (10) calendar days following the Employer- designated representative's final Step 2 answer. Any grievance not appealed in writing to Step 3 by the Union within ten (10) calendar days shall be considered waive. Step 3. If appealed, the written grievance shall be presented by the Union and discussed with the Employer- designated Step 3 representative. The Employer - designated representative shall give the Union the Employer's answer in writing within ten (10) calendar days after receipt of such Step 3 grievance. A grievance not resolved in Step 3 may be appealed to Step 4 within ten (10) calendar days following the Employer- designated representative's final answer to Step 3. Any grievance not appealed in writing to Step 4 by the Union within ten (10) calendar days shall be considered waived. Step 3a. If the grievance is not resolved at Step 3 of the grievance procedure, the parties, by mutual Agreement, may submit the matter to mediation with the Bureau of Mediation Services. Submitting the grievance to mediation preserves timeliness for Step 4 of the grievance procedure. Any grievance not appealed in writing to Step 4 by the Union within ten (10) calendar days of mediation shall be considered waived. -5- Step 4. A grievance unresolved in Step 3 or Step 3a and appealed to Step 4 by the Union shall be submitted to arbitration subject to the provisions of the Public Employment Labor Relations • Act of 1971 as amended. The selection of an arbitrator shall be made in accordance with the "Rules Governing the Arbitration of Grievances" as established by the Bureau of Mediation Services. 12.5 Arbitrator's Authority a. The arbitrator shall have no right to amend, modify, nullify, ignore, add to, or subtract from the terms and conditions of this Agreement. The arbitrator shall consider and decide only the specific issue(s) submitted in writing by the Employer and the Union, and shall have no authority to make a decision on any other issue not so submitted. b. The arbitrator shall be without power to make decisions contrary to, or inconsistent with, or modifying or varying in any way the application of laws, rules, or regulations having the force and effect of law. The arbitrator's decision shall be submitted in writing within thirty (30) days following close of the hearing or the submission of briefs by the parties, whichever be later, unless the parties agree to an extension. The decision shall be binding on both the Employer and the Union and shall be based solely on the arbitrator's interpretation or application of the express terms of this Agreement and to the facts of the grievance presented. C. The fees and expenses for the arbitrator's services and proceedings shall be borne equally by the Employer and the Union provided that each party shall be responsible for compensating its own representatives and witnesses. If either parry desires a verbatim record of the proceedings, it may cause such a record to be made, providing it pays for the record. If both parties desire a verbatim record of the proceedings, the cost shall be shared equally. 12.6 Waiver If a grievance is not presented within the time limits set forth above, it shall be considered "waived." If a grievance is not appealed to the next step within the specified time limit or any agreed extension thereof, it shall be considered settled on the basis of the Employer's last answer. If the Employer does not answer a grievance or an appeal thereof within the specified time limits, the Union may elect to treat the grievance as denied at that step and immediately appeal the grievance to the next step. The time limit in each step may be extended by mutual written Agreement of the Employer and the Union in each step. ARTICLE 13 — Overtime (Sergeant Classification) 13.1 Employees will be compensated at one and one -half (1' /2) times the employee's regular base pay rate for hours worked in excess of the employee's regularly scheduled shift. Changes of shift do not qualify an employee for overtime under this Article. 13.2 Overtime will be distributed as equally as practicable. 13.3 Overtime refused by employees will for record purposes under Article 13.2 be considered as unpaid overtime worked. -6- 13.4 For the purpose of computing overtime compensation, overtime hours worked shall not be pyramided, compounded, or paid twice for the same hours worked. 13.5 Overtime will be calculated to the nearest six (6) minutes. 13.6 Employees have the obligation to work overtime or call backs if requested by the Employer unless unusual circumstances prevent the employee from so working. 13.7 When employees have less than twelve (12) hours of duty -free time between assigned shifts, they will be compensated at a rate of one and one -half (1 /2) times the employee's regular base pay rate for the next shift. For purposes of this Article, shift extensions, elected overtime, voluntary changes of shifts, City - contracted work, training, and court time are considered as duty -free time. The twelve (12) hour requirement maybe waived by mutual Agreement between the Employee and the Police Administration. 13.8 As an option to monetary compensation for overtime, an employee may annually elect compensatory time off at a rate of one and one -half (1 %2) time. An employee's compensatory time bank shall not exceed forty (40) hours at any time during a calendar year. On or about December 1 of each year, the City will pay off by check the balance of compensatory time accumulated by each sergeant. No compensatory time will be accumulated or used during the month of December. Special overtime duty assignments made available to all employees by the Chief of Police at the employee's rate of compensation will not be eligible for compensatory time. Compensatory time off shall be granted only at the convenience of the Employer with prior approval of the Employer- designated supervisor. 13.9 Employees given less than sixteen (16) hours notice of a scheduled duty change other than their regularly scheduled work period shall be compensated at one and one -half (1 /z) times the employee's regular pay rate for hours worked outside of the scheduled work period. 13.1 OPolice Commanders are only eligible for overtime pay for privately funded and grant funded projects (Safe and Sober, etc.) and are otherwise ineligible for overtime. ARTICLE 14 - Court Time An employee who is required to appear in court during their scheduled off -duty time shall receive a minimum of three (3) hours pay at one and one -half (1 /z) times the employee's base pay rate. An extension or early report to a regularly scheduled shift for court appearance does not qualify the employee for the three (3) hour minimum. Employees shall not be required to work office or street duty to qualify for the court time minimum. An employee who is required to appear in court during their scheduled off -duty time shall be given 12 hours prior notification of cancellation of the court appearance. If the notification is not given 12 hours prior to the scheduled court time, the employee will receive the three (3) hour court time minimum. 14.1 Any employee, who is on their scheduled days off and is canceled from a court appearance with less than twelve hours notice, shall receive the short notice provision of Article 14. -7- 14.2 Any employee, who is canceled from a court appearance with less than twelve hours notice . during their scheduled work week, shall not be eligible for the short notice provision of Article 14. 14.3 Any employee who appears in court during their scheduled work week shall be paid the Article 14 minimum or the actual time spent, whichever is greater. 14.4 Any employee who is placed on stand -by for court should retain a copy of the notice placing them on stand -by, or obtain the name of the person placing them on stand -by. The employee will be paid the Article 14 minimum or Article 17 pay, whichever is greater. ARTICLE 15 - Call Back Time An employee who is called to duty during their scheduled off -duty time shall receive a minimum of two (2) hours pay at one and one -half (1'h) times the employee's base pay rate. An extension or early report to a regularly scheduled shift for duty does not qualify the employee for the two (2) hours minimum. ARTICLE 16 - Working Out of Classification Employees assigned by the Employer to assume the full responsibilities and authority of a higher job classification shall receive the salary schedule of the higher classification for the duration of the assignment. ARTICLE 17 - Standby Pay • Employees required by the Employer to standby shall be paid for such standby time at the rate of one hour's pay for each hour on standby. ARTICLE 18 - Leaves of Absence 18.1 In cases of demonstrated need and where sick leave has not been abused, the Employer shall grant to employees a leave of absence without pay for extended personal illness after the accumulative sick leave has expired. Such leaves of absence shall not exceed ninety (90) calendar days. Upon granting such unpaid leave of absence, the Employer will not permanently fill the employee's position and the employee's benefits and rights shall be retained. 18.2 An employee called to serve on a jury shall be reimbursed the difference between the amount paid for such service (exclusive of travel and expense pay) and compensation for regularly scheduled working hours lost because of jury service. 18.3 Employees ordered by proper authority to National Guard or Reserve Military Service not exceeding fifteen (15) working days in any calendar year shall be entitled to leave of absence without loss of status. Such employees shall receive compensation from the Employer equal to the difference between his/her regular pay and the lesser military pay. 18.4 Employees called and ordered by proper authority to active military service in time of war or other properly declared emergency shall be entitled to leave of absence without pay during such service. Upon completion of such service, employees shall be entitled to the same or similar -8- employment of like seniority, status, and pay as if such leave had not been taken, subject to the specific provisions of Chapter 192 of the MN Statutes. 18.5 Members of the bargaining unit will receive such additional leaves as provided for under State or Federal law, as the same laws may be amended from time to time. 18.6 Additional leaves of absence may be granted in the City Manager's discretion upon the same terms and conditions as then applicable to non -Union employees pursuant to the City's Personnel policy applicable to non -Union employees at the time of application for a leave of absence. ARTICLE 19 - Severance 19.1 An employee shall give the Employer two (2) weeks notice in writing before terminating his employment. 19.2 Severance pay in the amount of one -third (113) the accumulated sick leave employees have to their credit at the time of resignation or retirement, times their respective regular pay rate, shall be paid to employees who have been employed for at "least five (5) consecutive years. If discharged for just cause, severance pay shall not be allowed. 19.3 Employees electing to participate in a Health Care Savings Plan will receive 40% of sick leave severance paid into the Health Care Savings Plan. Employees not eligible to participate in the Health Care Savings Plan will receive one -third of sick leave severance. ARTICLE 20 - Injury on Duty Employees injured during the performance of their duties for the Employer and thereby rendered unable to.work for the Employer will be paid the difference between the employee's regular pay and Workers' Compensation insurance payments for a period not to exceed 720 hours per injury, not charged to the employee's vacation, sick leave, or other accumulated paid benefits, after a three (3) working day initial waiting period per injury. The three (3) working day waiting period shall be charged to the employee's sick leave account less Workers' Compensation insurance payments. ARTICLE 21 - False Arrest Insurance The City of Brooklyn Center shall maintain liability insurance that includes a provision for unlawfully detaining an individual when an employee is acting within the scope of their duties on behalf of the City of Brooklyn Center. ARTICLE 22 — Training 22.1 The Employer shall reimburse each employee who is required to maintain a license as a law enforcement officer under Minnesota Statutes, Section 626.84, et M.., for actual expenses of tuition, meals, travel, and lodging incurred in meeting the continuing education requirements of the Minnesota Police Officers Standards and Training Board, not to exceed 48 hours of such training every three (3) years. The Employer need not make such reimbursement for attendance at a course located less than sixty (60) miles from the City of Brooklyn Center and such reimbursement shall not exceed similar allowances for state employees. If the Employer provides in- service training to its employees which meets the continuing education requirements of the Minnesota Police Officers Standards and Training Board, and if the - 9 - Employer provides its employees with an opportunity to attend such in- service training courses, to the extent that such opportunity is provided to each employee, the obligation of the Employer to reimburse such employee for expenses incurred in attending continuing education courses shall be reduced. 22.2 The Employer shall pay each employee their regular salary while attending continuing education courses whether or not such courses attended are in- service training courses or courses given by instructors other than the Employer. The obligation of the Employer to pay such salaries shall not exceed a total of forty -eight (48) hours every three (3) years. ARTICLE 23 - Post License Fees The Employer shall pay up to $90 for the cost of POST license fees for all employees requiring such license during each licensing period. ARTICLE 24 - Uniforms The Employer shall provide required uniform and equipment items. In addition, the Employer shall pay to the uniformed officers a maintenance allowance of $155 per year. Plainclothes officer(s) shall be paid a clothing allowance of $590 per year. ARTICLE 25 - Holiday Leave 25.1 Employees shall receive eight (8) hours of holiday leave per month. Ninety -six (96) hours of holiday leave shall be advanced to employees on January 1 St of each calendar year beginning on January 1 St 2002. In the event an employee is not employed for the entire calendar year, the employee's holiday leave shall be reduced by eight (8) hours for each full month that the employee will not have worked in that calendar year. 25.2 Employees may use holiday leave with the approval of the Employer. 25.3 An employee who works on Martin Luther King, Jr. Day, Memorial Day, Independence Day, or Labor Day shall receive time and one -half (1' /2) employee's regular pay rate for all hours actually worked during the named holiday. 25.4 An employee who works on New Year's Day, Thanksgiving Day, or Christmas Day shall receive two times the employee's regular pay rate for all hours actually worked during the named holiday. 25.5 Except as provided in 25.3, overtime pay shall not be authorized for employees for hours worked on holidays when such work is part of the planned schedule. 25.6 An employee may request a holiday off, which he /she is required to work, prior to fourteen calendar days before the holiday. The Employer shall post the open holiday shift to be filled by another employee at the holiday rate of pay. The employee making the request for the holiday off is responsible for working the holiday if the posting is not filled five (5) days prior to the holiday. 25.7 Employees beginning employment after January 1 St of a calendar year shall receive eight (8) i hours of holiday leave per month beginning on the first month in which they are working as -10- of the first day of that month. Such employees shall receive an advance of holiday leave hours equal to eight (8) hours multiplied by the number of whole months they will work through December of the year in which they were first employed. 25.8 Any holiday leave not used on or before December 31 " of each year will be deemed forfeited and shall not carry over into the next calendar year. ARTICLE 26 — Vacation Leave 26.1 Permanent full -time employees shall earn vacation leave with pay as per the following schedule: 0 through 10 years of service - one hundred twenty (120) hours per year (accrued at 4.62 hours per pay period) Eight (8) additional hours per year of service to a maximum of one hundred sixty (160) hours after fifteen (15) years of service 11 years - 4.92 hours per pay period 12 years - 5.23 hours per pay period 13 years - 5.54 hours per pay period 14 years - 5.85 hours per pay period 15 years - 6.15 hours per pay period 26.2 Employees using earned vacation leave or sick leave shall be considered working for the purpose of accumulating additional vacation leave. 26.3 Vacation may be used as earned, except that the Employer shall approve the time at which the vacation leave may be taken. Employees shall not be permitted to waive vacation leave and receive double pay. 26.4 may Employees accrue a maximum of two hundred 230 hours of vacation leave. Y thirty Employees may not carry forward more than two hundred thirty (230) hours of vacation leave from year to year. 26.5 Employees leaving the service of the Employer in good standing, after having given the Employer fourteen (14) day notice of termination of employment, shall be compensated for vacation leave accrued and unused. ARTICLE 27 - Sick Leave 27.1 Sick leave with pay shall be granted to probationary and permanent employees at the rate of eight (8) hours per month or 96 hours per year (computed at 3.69 hours per pay period) of full -time service or major fraction thereof, except that sick leave granted probationary employees shall not be available for use during the first six (6) months of service. 27.2 Sick leave shall be used normally for absence from duty because of personal illness or legal quarantine of the employee, or because of serious illness in the immediate family. Immediate family shall mean brother, sister, parents, parents -in -law, spouse, or children of the employee. Sick leave may be used for the purpose of attending the funeral of -11- immediate family members plus brothers -in -law, sisters -in -law, grandparents, grandparents -in -law, and grandchildren of the employee. 27.3 Sick leave shall accrue at the rate of eight (8) hours per month or ninety -six (96) hours per year until nine hundred sixty (960) hours have been accumulated (shall be computed at 3.69 hours per pay period). Effective January 1, 1994, after nine hundred sixty (960) hours have been accumulated, sick leave shall accrue at the rate of four (4) hours per month or forty- eight (48) hours per year (computed at 1.85 hours per pay period), and simultaneously vacation leave, in addition to regular vacation leave accrual, shall accrue at the rate of two (2) hours per month or twenty -four (24) hours per year (computed at .925 hours per pay period). Employees using earned vacation or sick leave shall be considered to be working for the purpose of accumulating additional sick leave. Workers' Compensation benefits shall be credited against the compensation due employees utilizing sick leave. 27.4 In order to be eligible for sick leave with pay, an employee must: a. notify the Employer prior to the time set for the beginning of their normal scheduled shift; b. keep the Employer informed of their condition if the absence is of more than three (3) days duration; c. submit medical certificates for absences exceeding three (3) days, if required by the Employer. 27.5 Employees abusing sick leave shall be subject to disciplinary action. 27.6 An employee who accumulated 960 hours of sick leave and who uses not more than the equivalent of two regularly scheduled shift's worth of sick leave hours in a calendar year shall receive a wellness incentive equal to one of the employee's regularly scheduled shifts' compensation at the employee's regular rate of compensation. ARTICLE 28 - Insurance 28.1 2011 Full-time employees Effective 1 /1 /11, the City will contribute payment of eight hundred ninety dollars ($890) per month per employee for use in participating in the City's insurance benefits. For 2011 employees electing to participate in a high deductible health plan will receive an incentive of $80 per month. 28.2 2012 Full-time employees Reopener to discuss 2012 insurance contributions. 28.3 Life Insurance and Balance of Cafeteria Funds: The City of Brooklyn Center will provide payment for premium of basic life insurance in the amount of $10,000. The employee may use the remainder of the contribution (limits as stated above) for use as provided in the Employer's Cafeteria Benefit Plan. The Employer will make a good faith effort to provide the following options for employee selection: group dental, supplemental life, long -term disability, deferred compensation or cash benefits. The Employer will be excused from the requirement of offering a particular option where such becomes unfeasible because of -12- conditions imposed by an insurance carrier or because of other circumstances beyond the City's control. ARTICLE 29 - Wage Rates Sergeant- Date Sergeant Rate 1/1/11_0% $39.40/hour 1/1/12-2% + $.50 /hr $40.69/hour market adjustment Commander - Date Commander Rate 1/1/11_0% $7,326 - $7,670 /month 1/l/12-2% + $1.50 /hr $7,733 - $8,083 /month market adjustment New hires in the Commander classification will be paid at minimum starting wage, be on probation for one year and after successful completion of probation will receive a pay increase to the maximum pay. ARTICLE 30 - Benefits for Retirees Retirees at the time of retirement shall receive the same options and level of City contribution for insurance coverage upon retirement as are provided by the City's Personnel Policy covering non - Union employees as such options and contributions may be changed by the City from time to time. ARTICLE 31- Mileage and Expense Reimbursement Employees shall receive the same mileage and expense reimbursement rates upon the same terms and conditions as generally provided in the City's Personnel Policy covering non -Union employees as such policy may be changed by the City from time to time. ARTICLE 32 - Light Duty Members of the bargaining unit will be eligible for temporary light duty assignment upon approval of the City Manager upon such terms and conditions as would apply to non -Union employees of the City as set forth in the City's personnel policy, as the same may be amended from time to time by the City. ARTICLE 33 - Retiree Health Savings Plan (RHSP) The Retiree Health Savings Plan (RHSP) is established to help defray the cost of medical expenses and health insurance premiums for employees, spouses and dependents after the employee leaves employment with the City of Brooklyn Center. 1. Participation Eligibility Regular full -time benefit earning employees may have contributions made on their behalf ® into the RHSP. -13- Participants must be 21 years of age or older. Unless noted otherwise in this policy, the minimum period of service required to participate in the plan is 60 days. • Every eligible employee in an employee group is required to participate in the RHSP for their group as outlined in this applicable labor agreement. 2. RHSP Contributions When appropriate, each employee will have an account established in his or her name. Unless specifically noted otherwise, contributions (and earnings) to an employee's RHSP account are not taxable income. 3. Accessing Funds a. Employees may access the funds in their RHSP account when they are eligible to retire under the Public Employees Retirement Association's (PERA) rules. b. Unless prohibited by the IRS, employees leaving employment with the City prior to being eligible for retirement through PERA, for the reasons noted below, may make withdrawals on a tax -free basis for eligible health- related expenses. • Upon termination of employment. • If employee is collecting a disability. • If employee is on a medical leave (six months or longer) • If employee is on a leave of absence (one year or longer) If the employee returns to work and is earning medical benefits, they are no longer eligible to make withdrawals from their RHSP account. The IRS does not allow these funds to be rolled into any other type of plan, including an IRA. C. Access following death. The surviving spouse and eligible dependents continue to access the account for eligible expense reimbursements until the RHSP account is exhausted. Such reimbursements are not taxable. Unless prohibited by the IRS, reimbursements may also be made to a beneficiary other than a surviving spouse or eligible dependent. However, such reimbursements would be taxable to the recipient. 4. Eligible Expenses Reimbursed by Plan Funds in a RHSP account may be used to reimburse: 1. Insurance premiums (health insurance premiums, Medicare supplemental insurance premiums, Medicare Part B insurance premiums, COBRA and Chapter 488 insurance premiums, long term care insurance premiums (not long term care expenses), and dental insurance premiums. 2. Most qualifying medical expenses as defined in Internal Revenue Code Section 213 (i.e. medical costs that would otherwise be deductible to the employee on his or her individual income tax return). A third -party claims administrator hired by ICMA -RC will handle claims administration. -14- 5. No Opt -out Employees and retirees in groups covered by the RHSP program are not permitted to opt -out of the program. Participation is mandatory. 6. Program Administration Along with the Human Resources Division, the ICMA Retirement Corporation will administer the RHSP program. The employee controls how the money is invested similar to his or her Section 457 deferred compensation program. The employee receives an account statement each quarter from ICMA for his or her RHSP account. 7. Administrative Fees Please contact ICMA for current administrative and mutual fund fees. 8. Plan Modifications The details of ICMA -RC's administration of the RHSP as well as other features of the plan are set forth in the RHSP materials provided by ICMA -RC. These details and IRS regulations regarding the RHSP may be revised, necessitating the revision to this policy or other agreements between employee groups and the City. The City reserves the right to modify its policy to comply with any other regulations regarding the plan and to add contribution requirements. 9. Contribution Formulas 1. Election for Pre -Tax Contributions from Compensation. Employees may elect to contribute up to 25% of their compensation. This is a one -time, irrevocable election. Employees must make this decision during the open enrollment period 2. Severance Pay. Employees who qualify to receive severance pay and vacation pay upon retiring or leaving the city in good standing, as defined by the current Labor Agreement, will designate from 0% to 100% (in 10% increments) to be placed in their individual RHSP accounts at the time of retirement or resignation. This is an irrevocable election. Employees must make this decision during the open enrollment period prior to the beginning of the year in which they will retire. ARTICLE 34 - Agreement Implementation Employer shall implement the terms of this Agreement in the form of a resolution. If the implementation of the terms of this Agreement require the adoption of a law, ordinance, or charter amendment, the Employer shall make every reasonable effort to propose and secure the enactment of such law, ordinance, resolution, or charter amendment. ARTICLE 35 - Waiver 35.1 Any and all prior Agreements, resolutions, practices, policies, rules, and regulations regarding terms and conditions of employment, to the extent inconsistent with the provisions of this Agreement, are hereby superseded -15- 35.2 The parties mutually acknowledge that during the negotiations which resulted in this Agreement, each had the unlimited right and opportunity to make demands and proposals with respect to any term or condition of employment not removed by law from bargaining. All Agreements and understandings arrived at by the parties are set forth in writing in this Agreement for the stipulated duration of this Agreement. The Employer and the Union each voluntarily and unqualifiedly waives the right to meet and negotiate regarding any and all terms and conditions of employment referred to or covered in this Agreement or with respect to any term or condition of employment not specifically referred to or covered by this Agreement, even though such terms or conditions may not have been within the knowledge or contemplation of either or both of the parties at the time this contract was negotiated or executed. ARTICLE 36 - Duration This Agreement shall be effective as of January 1, 2011 and shall remain in full force and effect until the thirty-first (3 1) day of December 2012, as noted in the contract. IN WITNESS THERETO, the parties have caused this Agreement to be executed this day of , 2011. FOR LAW ENFORCEMENT LABOR SERVICES NO. 86 Business Agent Union Steward Union President FOR THE CITY OF BROOKLYN CENTER Mayor City Manager -16- City Council Agenda Item No. 6d 1 COUNCIL ITEM MEMORANDUM • DATE: February 22, 2011 TO: Curt Boganey, City Manager FROM: Steve Lillehaug, Director of Public Works /City Engineer SUBJECT: Resolution Approving Plans and Specifications and Authorizing Advertisement for Bids, Improvement Project Nos. 2011 -01, 02, 03 and 04, Palmer Lake East Neighborhood Street, Storm Drainage and Utility Improvements Recommendation: It is recommended that the City Council consider approval of the attached resolution approving plans and specifications and authorizing advertisement for bids, Improvement Project Nos. 2011 - 01, 02, 03 and 04, Palmer Lake East Neighborhood Street, Storm Drainage and Utility Improvements. Background: On February 14, 2011, City Council conducted a series of two public hearings on the proposed Palmer Lake East Neighborhood Street, Storm Drainage and Utility Improvements. At that meeting, City Council ordered the improvements and directed staff to prepare plans and specifications for the project. • Construction plans, specifications and contract documents have been prepared for the project. The overall scope of the project remains consistent with the improvements outlined in the feasibility study. Staff is prepared to begin the project bidding process upon authorization from the City Council. The bidding process would involve advertisement of the project in the City's official newspaper and in the Construction Bulletin magazine. Sealed bids would be collected, opened on a scheduled bid opening date, and tabulated by the City Clerk and City Engineer. Staff anticipates that the bid results will be presented to the City Council for consideration at the April 11, 2011, City Counc4l meeting. Budget Issues: The total project cost is estimated to be $7,338,000. Funding sources for the project are budgeted from sources as described in the project feasibility report previously accepted by the City Council on January 24, 2011, and presented to the Council at the February 14, 2011, meeting. Council Goals: Strategic: 5. We will continue to maintain and upgrade City infrastructure improvements Ongoing: 6. We will ensure the City drinking water is high quality and that the storm water is properly managed Mission Ensuring an attractive, clean sa %e evinnsunitr that enhunees the qualitt• ref life andhreserves the publie trust Member introduced the following resolution and moved its adoption: • RESOLUTION NO. RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS, IMPROVEMENT PROJECT NOS. 2011 -01, 02, 03 AND 04, PALMER LAKE EAST NEIGHBORHOOD STREET, STORM DRAINAGE AND UTILITY IMPROVEMENTS WHEREAS, the Brooklyn Center City Council, by Resolution Nos. 2010 -114 and 2010 -119, ordered Improvement Project Nos. 2011 -01, 02, 03 and 04 and authorized the preparation of plans and specifications for the Palmer Lake East Neighborhood Street, Storm Drainage and Utility Improvements; and WHEREAS, said plans and specifications have been prepared under the direction of the City Engineer. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that: 1. The plans and specifications for Improvement Project No. 2011 -01, 02, 03 and 04 are hereby approved and ordered filed with the City Clerk. 2. The City prepare Clerk shall are and cause to be inserted in the official newspaper • P and in the Construction Bulletin an advertisement for bids for the making of such improvements in accordance with the approved plans and specifications. The advertisement shall be published in accordance with Minnesota Statutes, shall specify the work to be done and shall state the time and location at which bids will be opened by the City Clerk and the City Manager or their designees. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the City Clerk and accompanied by a cash deposit, cashier's check, bid bond, or certified check payable to the City of Brooklyn Center for 5 percent of the amount of such bid. February 28, 2011 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. - - � GOVERNING SPECIFICATIONS CITY O F 1 B R 0 0 KLYN CENTER THE 2005 EDITION OF THE MINNESOTA DEPARTMENT OF TRANSPORTATION • "STANDARD SPECIFICATIONS FOR CONSTRUCTION ", AND THE CITY OF BROOKLYN HENNEPIN COUNTY, MINNESOTA CENTER STANDARD SPECIFICATIONS FOR UTILITY AND STREET CONSTRUCTION SHALL GOVERN. PLANS FOR GRADING, BITUMINOUS PAVING, CONCRETE CURB AND GUTTER, STORM SEWER, SANITARY SEWER, WATERMAIN AND MISCELLANEOUS CONSTRUCTION INDEX 2011 PALMER LAKE EAST AREA STREET AND UTILITY IMPROVEMENTS SHEET NO. DESCRIPTION 1 TITLE SHEET XX GENERAL LAYOUT CITY PROJECT NO. 2011- 01 , - 02 -03 & -04 XX STATEMENT OF ESTIMATED QUANTITIES X CONSTRUCTION /SOILS NOTES X SANITARY SEWER TABULATION X STORM SEWER TABULATION LEGEND XX TYPICAL SECTION XX CITY OF BROOKLYN CENTER STANDARD PLATES PROPOSED CURB & GUTTER..... XX TEMPORARY SEDIMENT CONTROL EXISTING SANITARY SEWER....... - XX STORM WATER POLLUTION PREVENTION PLAN PROPOSED SANITARY SEWER.... 3 XX EXISTING STORM SEWER .......... y'--�i TREE REMOVAL PLAN PROPOSED STORM SEWER......... >> I XX STORM SEWER AND STREET CONSTRUCTION PLAN EXISTING WATERMAIN ................. XX SANTARY INTERSECTION SEWER AND WATERMAIN PLAN PROPOSED WATERMAIN .............. -'� \ ; XX INTERSECTION DETAILS EXISTING SANITARY MANHOLE ................ XX CROSS SECTIONS PROPOSED SANITARY MANHOLE ............. , EXISTING STORM MANHOLE ..................... ® CSAH 30 PROPOSED STORM MANHOLE .................. • EXISTING CATCH BASIN ........................... ®® PROPOSED CATCH BASIN......I — ..............ON EXISTING HYDRANT ... ............................... . PROPOSED HYDRANT . ............................... _ p EXISTING GATE VALVE ............................. _ o PROPOSED GATE VALVE ..........................m \ <> + EXISTING WATER MANHOLE ..................... PALMER LAKE EAST AREA PROJECT AREA PROPOSED WATER MANHOLE .................. • EXISTING CURB BOX . ............................... 694 _ 2011 - 01,02,03,04 PROPOSED CURB BOX ............................ • UTILITY POLE, LIGHT POLE .......................00 s ELECTRIC MANHOLE ... ..............................© - _a THIS PLAN CONTAINS XX SHEETS. • 63RD AVE N -` -- BURIED GAS MAIN ..................... ELECTRIC (UNDERGROUND) ........ ELECTRIC (OVERHEAD) .............. r CABLE N v (UNDERGROUND)...... - �sr �- 1 i CABLE N (OVERHEAD) ............. !!! C TELEPHONE (UNDERGROUND) .... TELEPHONE (OVERHEAD) ........... y 94 FIBER OPTIC (UNDERGROUND)... - �� - ��� FIBER OPTIC (OVERHEAD) .......... RIGHT - OF- WAY ......................... PROPERTY LINE ......................... WOOD FENCE. _ [� . o - 1 ............................ CSAH 101 CITY OF CHAIN LINK FENCE ................... —■ —X — BROOKLYN CENTER DECIDUOUS TREE .................... 57TH AVE N HENNEPIN COUNTY, MINNESOTA CONIFEROUS TREE .................. N I 11H SHRUB ..... ............................... A I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION OR REPORT WAS YARD LIGHT ............................ O > PREPARED BY ME OR UNDER MY DRIECT SUPERVISION AND THAT MAILBOX .. ............................... • > I AM A DULY LICENSED PROFESSIONAL ENGINEER UNDER THE LAWS SIGN......... ............................... Q STREET SIGN .......................... + OF THE STATE OF MINNESOTA STOP SIGN .............................. T 53RD AVE TEST BORING .......................... ® SCALES 100 PLAN 50' SIGNATURE: DATE: � PRINTED NAME: STEVEN L. LILLEHAUG LIC. NO. 41866 PROFILE i 50' , 5 , CITY OF BROOKLYN CENTER ENGINEER 50TH AVE HORIZ. VERTICAL a PLAN REVISIONS PROJECT LOCATION DATE SHEET N0. APPROVED BY i ?� COUNTY: HENNEPIN v� DISTRICT: METRO • THE SUBSURFACE UTILITY INFORMATION IN THIS PLAN IS UTILITY QUALITY LEVEL D. THIS QUALITY LEVEL WAS DETERMINED ALL TRAFFIC CONTROL DEVICES SHALL CONFORM AND BE INSTALLED IN ACCORDANCE TO THE MINNESOTA MANUAL ACCORDING TO THE GUIDELINES FOR THE COLLECTION AND DEPICTION OF EXISTING SUBSURFACE UTILITY DATA. ON UNIFORM TRAFFIC CONTROL DEVICES' (MN MUTCD AND PART VI. "FIELD MANUAL FOR TEMPORARY TRAFFIC CONTROL ZONE LAYOUTS. THE BURIED UTIUTY LINE LOCATIONS SHOWN ON THE PLAN SHEETS ARE ONLY APPROXIMATE. CONTRACTOR SHALL CALL 'GOPHER STATE ONE CALL' (651- 454 -0002) FOR EXACT LOCATIONS BEFORE COMMENCING WORK. SHEET NO ........ 1........ OF....... ...... SHEETS 73ND AVE N - - -------------------------------- ---------------------------------- --------------- ---------- -- - — ------------------------- --------------------------- -------------------------- -------------- ---------------- ------ - ------ ---------------------- - ze — ------------- F, c zt Z Z El Ell r F L BI L j ------ F. QN, k W66D N IT IrT 1 m-tv ------ al y 0 - I. - I Eti Df L -L� i 17.' 1 ------------------------- ---------- T� J-ff --- D 'N -7] i Z ----------- 72ND! AVE N < --- -- ------- -- �A 10 Q z z - ,� < A , i � N. "ft 0 z I A 4 A IRI-- al"-f s -9 la 14, 11 , ,e 100 100 200 'T SCALE FEET -J;� w --- i- I O I1 � Z ------------- - ---------- mcd iQ li jw -1 t A - -, 6L 7 AV IN —7 jqT F9 - 7] iw 1 611 - �lr PROPOSED CONCRETE CURB AND PROPOSED SANITARY SEWER A PROPOSED HYDRANT (REMOVE EXISTING) PROPOSED STORM SEWER PIPE KEY: GUTTER MAIN LINE REPLACEMENT PROPOSED GATE VALVE (REMOVE EXISTING) AND STORM STRUCTURES PROPOSED CONCRETE DRIVEWAY (REMOVE EXISTING) PROPOSED WATERMAIN REPLACEMENT EXISTING STORM SEWER PIPE APRON PROPOSED SANITARY SEWER (REMOVE EXISTING) AND STORM STRUCTURES TO LD PROPOSED CONCRETE SIDEWALK MANHOLE REPLACEMENT (REMOVE EXISTING HYDRANT TO REMAIN IN REMAIN IN PLACE EXISTING) PLACE PROPOSED STREET EXISTING SANITARY SEWER TO EXISTING GATE VALVE TO REMAIN 0 PROPOSED GRIT CHAMBERS • El CONSTRUCTION REMAIN IN PLACE IN PLACE 0 — Fj IV SANITARY MANHOLE TO REMAIN EXISTING WATERMAIN TO REMAIN PROPOSED BITUMINOUS DRIVEWAY PATCH IN PLACE IN PLACE GENERAL LAYOUT DATE BY REVISION HEREBY CERTIFY TMT THIS PLAN. SPEC# OR REPORT WAS PREPARED BY ME Sheet OR UNDER Vr D"Cl SUPERVWN AND THAT I AM A MY UCENSED PROFESSOW CITY PROJECT CITY OF ENGINEER UNDER ME Lon OF THE STATE OF AiMIESOTA Dem By 2011-05 PALMER LAKE AREA STREET XXX SIGNATURE DATE_ AND UTILITY IMPROVEMENTS Of BROOKLYN CENTER DATE.' mvm BY IEIEPIN COUNTY, MINNESOTA PRINTED NAME: STEVEN L. LILLEHAUG LIC. No, 41888 GENERAL LAYOUT WV 4 pt p. � y �.•, _� � _ - -,_ 11 r - - Z j - T ] .._.._.._- a n Z. co zL. - Ok� - i ' - -- 7 N d ;I _ o li '.log _ 1 NG AN r. I _ I I L I _a I I - — - -_ I- _ _ _ �5�7 1 1 100 0 100 200 r r SCALE FEET + f i 1 i a , 69TH AVE N - -_ __ ___ 7 - __ J -t __ = PROPOSED CONCRETE CURB AND + PROPOSED HYDRANT (REMOVE EXISTING) —« —«— PROPOSED STORM SEWER PIPE GUTTER KEY PROPOSED SANITARY SEWER MAIN LINE REPLACEMENT x PROPOSED GATE VALVE (REMOVE EXISTING) • AND STORM STRUCTURES PROPOSED CONCRETE DRIVEWAY (REMOVE EXISTING) APRON — w PROPOSED WATERMAIN REPLACEMENT EXISTING STORM SEWER PIPE PROPOSED SANITARY SEWER (REMOVE EXISTING) 3 AND STORM STRUCTURES TO 0 PROPOSED CONCRETE SIDEWALK MANHOLE REPLACEMENT (REMOVE EXISTING HYDRANT TO REMAIN IN REMAIN IN PLACE EXISTING) PLACE PROPOSED STREET EXISTING SANITARY SEWER TO EXISTING GATE VALVE TO REMAIN 0 PROPOSED GRIT CHAMBERS CONSTRUCTION REMAIN IN PLACE • IN PLACE SANITARY MANHOLE TO REMAIN EXISTING WATERMAIN TO REMAIN Q PROPOSED BITUMINOUS DRIVEWAY PATCH IN PLACE IN PLACE GENERAL LAYOUT NO. DATE BY REVLON I NEAEBY CERIFY nMT M PW( SPECFrATION OR REPORT WAS PREPARED BY ME Sheet CITY OF DR rowt w DIRECT SUPER F T AND E O I A DAY ucnasm PROTESSO/ML o n TL CIT20PROUJSCT PALMER LAKE AREA STREET { ENCMOt U7'DkR ThE LAWS OF THE STATE OF MMIF507A EHENNEPIN ROKLYN CENTER SIGNATURE: DATE: ° h1 AND UTILITY IMPROVEMENTS O ' COUNTY, MINNESOTA PRINTED NAME: STEVEN L LILLEHAUG LIC. NO. 41888 GENERAL LAYOUT �� City Council Agenda Item No. 6e • • COUNCIL ITEM MEMORANDUM ® DATE: February 22, 2011 TO: Curt Boganey, City Manager FROM: Steve Lillehaug, Director of Public Works /City Engineer SUBJECT: Resolution Approving Plans and Specifications and Authorizing Advertisement for Bids, Improvement Project Nos. 2011 -05 and 06, Unity Avenue and Shingle Creek Parkway Street Improvements Recommendation: It is recommended that the City Council consider approval of the attached resolution approving plans and specifications and authorizing advertisement for bids, Improvement Project Nos. 2011- 05 and 06, Unity Avenue and Shingle Creek Parkway Street Improvements. Background: On February 14, 2011, City Council conducted a series of two public hearings on the proposed Unity Avenue Street Improvements. At that meeting, City Council ordered the improvements and directed staff to prepare plans and specifications for the project. Additionally, on August 9, 2010, City Council ordered the improvements for the Shingle Creek Parkway project and directed staff to prepare plans and specifications. These two projects have been combined for economy of scale purposes. Construction p , lans specifications and contract documents have been prepared for the project. p The overall scope of the project remains consistent with the improvements outlined in the feasibility study and the CIP. Staff is prepared to begin the project bidding process upon authorization from the City Council. The bidding process would involve advertisement of the project in the City's official newspaper and in the Construction Bulletin magazine. Sealed bids would be collected, opened on a scheduled bid opening date, and tabulated by the City Clerk and City Engineer. Staff anticipates that the bid results will be presented to the City Council for consideration at the April 25, 2011, City Council meeting. Budget Issues: The total project cost is estimated to be $1,166,000. Funding sources for the project are budgeted from sources as described in the 2011 CIP for Shingle Creek Parkway and the project feasibility report for Unity Avenue previously accepted by the City Council on January 24, 2011, and presented to the Council at the February 14, 2011, meeting. Council Goals: Strategic: 5. We will continue to maintain and upgrade City infrastructure improvements Mission: Enucran g un ullruclme, , glean sue comet � f' uni {r teal enhances the gaaalitY ofliJe and preserves the pacbllc trust Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS, IMPROVEMENT PROJECT NOS. 2011 -05 AND 06, UNITY AVENUE AND SHINGLE CREEK PARKWAY STREET IMPROVEMENTS WHEREAS, the Brooklyn Center City Council, by Resolution Nos. 2010 -115 and 116 ordered Improvement Project No. 2011 -05 and 06, respectively, and authorized the preparation of plans and specifications for the Unity Avenue and Shingle Creek Parkway Street Improvements; and WHEREAS, said plans and specifications have been prepared under the direction of the City Engineer. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that: 1. The plans and specifications for Improvement Project No. 2010 -05 and 06 are hereby approved and ordered filed with the City Clerk. 2. The City Clerk shall prepare and cause to be inserted in the official newspaper • and in the Construction Bulletin an advertisement for bids for the making of such improvements in accordance with the approved plans and specifications. The advertisement shall be published in accordance with Minnesota Statutes, shall specify the work to be done and shall state the time and location at which bids will be opened by the City Clerk and the City Manager or their designees. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the City Clerk and accompanied by a cash deposit, cashier's check, bid bond, or certified check payable to the City of Brooklyn Center for 5 percent of the amount of such bid. February 28, 2011 Mayor Ma Date y ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member • and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. CITY ®� �� ® ®���� CENTER GOVERNING SPECIFICATIONS THE 2005 EDITION OF THE MINNESOTA DEPARTMENT OF TRANSPORTATION PLAN SYMBOLS 'STANDARD SPECIFICATIONS FOR CONSTRUCTION', SHALL GOVERN. STATE LINE. - ._ -.- SHINGLE ����� PARKWAY UNITY AVENUE CITY THE 'MINNESOTA MANUAL ON UNIFORM TRAFFIC CONTROL DEVICES• (MN MUT 5 OTION ® P OR RANGE LINE._._ __. - -- AND PART VI, 'FIELD MANUAL FOR TEMPORARY TRAFFIC CONTROL ZONE LAYOUTS'. ecTION LINE.. CITY OF BROOKLYN CENTER STANDARD SPECIFICATIONS AND DETAILS. QUARTER LINE. SIXTEENTH LINE .................... — RIGHT -OF -WAY LINE ..- ... PRESENT RIGHT -OF -WAY LI - CITY PROJECT NOS. 201 1 -05, 201 1 -06 CONTROL OF ACCESS LINE..- _..... —O —O O- INDEX PROPERTY LINE (Except RT YC Llnes) GRADING, BITUMINOUS PAVING, TRAILS /WALKS, CONCRETE CURB & GUTTER, SANITARY SEWER & WATERMA I N SHEET No. SHEET DESCRIPTION VACATED PLATTED PROPERTY........ CONSTRUCTION PLAN FOR CORPORATE OR CITY LIMITS . ........ �� -� ���� ���� -��� �� � 1 TITLE SHEET SIGNING & STRIPING, DRAINAGE STRUCTURE RECONSTRUCTION 2 -3 GENERAL LAYOUT TRUNK HIGHWAY CENTER LINE _._. P.I. °7 ..... .._. - .. . . .. ... ...... .._.... .__.- ...._..- .- _----- __... - -... ......_. ......... .........__.___- _------ -_.... ._....._ _..._... ........._...- 4 -5 STATEMENT OF ESTIMATED QUANTITIES I ... CDNC.RETAINING WALL - -.. N- -^--vim 6 STANDARD PLATES RAILROAD..... LOCATED ON SHINGLE CREEK PARKWAY FROM ...._.. _ _ _ _.... SHINGLE CREEK TO FREEWAY BOULEVARD 7 CONSTRUCTION AND SOILS NOTES RAILROAD RIGHT -OF -WAY LINE -... — - — - — - 8 -11 TABULATIONS RIVER OR CREEK. " 12 -16 EXISTING UTILITY TABULATIONS AVENUE LOCATED ON _ .......... UNITY AVEN 69TH AVENUE DRY RUN _ _ _ �— __. __..... - FROM RD AVENUE -18 TYPICAL SECTIONS 17 DRAINAGE DITCH _... _._... S"E - 19-23 19 -23 STANDARD PLAN SHEETS DRAM TILE. . S.A.P. 109 - 109 -033 24-26 STAGING PLANS .... _ . .. . _ .. . . _ .. .. _,- >_ - _ D 27-29 TOPOGRAPHY AND UTILITY PLANS D ROP I T.. . ... _ _ _ 30-32 CONSTRUCTION PLANS GA _ _= GROSS LENGTH... ...3607.00 .,.,FEET - 0.683..,,MILES 33 -34 PEDESTRIAN CURB RAMP DETAILS GUARD RAIL ... - ..... -..... - p —._ BARBED WIRE FENCE . ..... ... BRIDGES - LENGTH .... 0 - 0 .......FEET 0.000_ MILES 35 -39 STORM WATER POLLUTION PREVENTION PLAN WOVEN WIRE FENCE ...... - w x w EXCEPTIONS LENGTH 0.0 ... ..FEET 0.000 MILES 40 WEIR RECONSTRUCTION DETAIL CHAIN LI FE NCE _ - . ...... — X` XC— NET LENGTH 3607.0,..,.,... FEET 0.683 _ _MILES 41 - 42 STRIPING PLANS RAILROAD snow FENCE­ - _ _ _ _ 43 TRAFFIC SIGNAL PLANS STONE WALL OR FENCE . ...... LENGTH AND DESCRIPTION BASED UPON SHINGLE CREEK PARKWAY HEDGE .. ...... . ............ ...... RAILROAD CROSSING SIGN RAILROAD CROSSING BELL -.. ...... ...... U] a HAM ILTON a ¢ z `' u � ' OP O OR, ¢ CT' XERXES Ci. r TB +n c a° LARAMlE TR ' N ELECTRIC WARNING SIGN .. .. ....... .. ..... v, L DR. CROSSING CATE 0 POy,DALE CIR, )8t1 u 77+M1 m m TR. _ w AV. ,•, )B}M1 CT. AT ... w J ? pV E. 78th LA. N. -+ w 701h [T. WN ItEW TR. MEANDER CORNER .... ... ...... 'I' r MAIL BOX ..... .... -... ... MR > P ti i a q z POT OMAL 4 LORE rc a ° BROOK ° v ....... . .... ... .... a w w r O ° lath AV. Q TB ESt ptE DR SPRINGS.- . TTtn m V mmO w �Y TR. 12.N � w a > c h i w p E• : � 0 4LE °< w DR. .......... � w z o ' c > of MARSH .... .. ...... ...... ........... / \ !4' 6q r fd )6th n PV E. N a 72. Bfl00KDALE DR. N. 1S1M1 AVE. N w LA. TIMBER OQ z A r > w C` 1 TA Fy V FP ORRD ....... .... ... .. IMBER) RD. p J u u I y H T) 'V� i9in m � T6tM1 CT. CHA (T )6tM1 AV�00 e o ... .. 7511 )5th AV. .:, p ..' N' AVE. BROOKO m AVE.O NURSERY / v `^"' tJ AVE. Q ISt y` z �� a T4tn >` a LA.a Q T41h Ci i a w w o w a O 51, PERRY PL. E. a' h C 74th ❑ 74th AV. AVE. a CATCH BASIN .. ........... ...... ..... ...... C.B. 52. BROOKLYN PL. 5 B EN 9 i x - ANN op K S, ° PE• m w ° r 1311 IT. FIRE HYDRANT .... ... ................. ....... P LA. LOGPN CT, ¢ PROJECT NO. 2011 -06 N°�` y 3 tl A VE. �� `R ��T3LG AVE. N. � „� AT. PROJECT N0.2011 -05 m WO OD CATTLE GLAND, ....... ... ¢ O P' ARD LA. WO 00 6i HE LA. T2n wQ0081NE Lp� - - UNITY AVENUE �> P p5 E,• w AYE. Q(Z e1 R QW m TI=+ AY. a BEG N 109 NS O TRUCTION eG BROORLYN� ovERPASS IHlonwoy ove n. _...... o AvE. c'a CENTER A z S z000 RoR. z9,nz HINGLE CREEK PARKWAY a o w ' 7Dt1 THIS PLAN CONTAINS 4.8 SHEETS _ L 27=t A Y AYE. R, —� g S UNDERPASS (Highway Untler). .R. TA. 100 +00.00 0 ih AVE BRIDGE , „ f T04 z i a w a i. i TOtM1 AVE. po w IN .............. - ...... w ke INC w �P — X < URBAN AVE. a vM1rm =� � a 691h CONSULTING GROUP, 69th a AV E. < a N. BUILDING (0 S, °� FLO -S -F V E O <0 60 iz ° AVE. ' N. ^15t ; 68 th AVE. m h A REEK s PRO F HEREBY ENGINEER UNDER THE WAS AWS OF THE STATE R . u 6 w f G­ ms)..... �m w AY 130 w o m O A. w r - 5 D _ PROJECT NO. 2011 O UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSE F - FRAME C CONCRETE 75 a rc S.A.P 109-109-033 a MINNESOTA. S -STONE T -TILE ° w m mw R BERa 57. PERRY LT. E. END CONSTRUCTION SIGNATURE B -BRICK ST- STUCCO N. " ' = 67 +h ° AVE. R0, 6a 1n 171 > 67 h" m AY E. g 94 5z "' R 5a'PERRY LT. W. P ARKWAY SHINGLE CREEK PARKWAY IRON PIPE OR ROD .......... ... ...... ... © >� w,y 59. WINGARD PL. ctR. a LIG. CONCRETE, R M 4 HOWE LA y.K 60. QUAIL CIO. E. DATE NO. STA. 137 MONUMENT (STONE, METAL) 4�16D PRINT NAME JONATHAN MCPHERSON .... XEflXES . CONCR DR M ....... ........... ■ w 6611 AVE. 66th z z AY E. x S .;� 61. QUAIL CIO. W. 62. P . UTILITY SYMBOLS PARKWAY LtR. WOODEN HUB. �i WINCHESTER LA. OUARLES O, FRE EWAY L DLVD. a 65in AYE. N. ° 66,h AVE. P ._ ._.... _ - .__.._.... _ . "I � °o PAUL DR. � w "i � ; w � ROVED Q a o j p Q 641h AVE. N JA AP CITY OF BROOKLYN CENTER ENGINEER 0........ AVE. WATERMAIN VALVE Da 64th AV. >< 64 th AV E. OR , ui POE N N. VE. y � � ELEANOR i HYDRANT a o a � T � Q p IFA% O O'HENRY fl0. �? r i > 63rtl � AVE. N a � w i 63rtl AVE. N. ° t 4 < MDMf NasH RD. m City PROJECT LOCATION - 20 WATERMAN MANHOLE W BOULDER LA. a •IOYCf oLA ? o ORD Hall DISTRICT STATE AID ENGINEER: REVIEWED FOR r � ° szn 6 z na Ro. cuaB sroP ®W Cry stal 6210 g o a = � ' x � A VE. w 4W nP£ N w COUNTY ,.HENNEPIN... COMPLIANCE WITH STATE AID RULES /POLICY �' �>^] z AVE. � .. POWER POLE LINE Airport %' ° -N£T LA, a RO NCE w SDMMI7 DISTRICT :.....METRO.... TELEPHONE OR TELEGRAPH �\ 1\� �� y\ v1 61st AVE N w > 61st AV ( m w E.. oY 20. POLE LINE RC R� i ........ . . .... ........ ...... JOINT TELEPHONE AND POWER 7119N R21w m a cOMMOOQflE La. APPROVED FOR STATE AID FUNDWG: STATE AID ENGINEER ON POWER POLES �— CRYSTAL x u EA w 60 th m a A =OF, '�4,Pty'v pPE ON TELEPHONE POLES �� 2002 69gP• i 1BN3P21w 58% AVE' = a % 5 `N SCALES ` U S 152 59 ih A E. ANCHOR `— STEEL TOWER DES DESIGNATION INDEX MAP 3000' STREET DESIGN DES e I I LI G HT 300 Y7 GENERAL LAYOUT 1 PEDESTAL (TELEPHONE CABLE FOR: S SHINGLE CREEK PK W Y. J TERMINAL.) PLAN 100' R - VALUE 50 Gas MAIN — G — G— I AST (Current Year) 2010 = 11,300 C WATER MAIN I— ... ..... __. PROFILE HORI VERT. 10 Z. ' °. CONDUIT ADT (Future Year) 2030 = 12,500 X- SECTION 20' 20' , t TELEPHONE CABLE IN CONDUIT —T PAVEMENT DESIGN _ 10 TON HORIZ. VERT. ± ELECTRIC CABLE IN CONDUIT FUNCTIONAL CLASSIFICATION COLLECTOR ........................ TELEPHONE MANHOLE D NO. OF TRAFFIC LANES 4 PLAN REVISIONS M - ....._......_... c ELECTRIC MANHOLE ® NO. OF PARKING LANES O DATE SHEET NO. APPROVED BY O BURIED TELEPHONE CABLE T-BUR BURIED ELECTRIC CABLE P -BUR— ESALS (20) 1, 064_,000 (20 YRS.) E BURIED FIBER OPTICS F10 Design Speed 35 MPH • 1 AERIAL TELEPHONE CABLE — > SEWER, (SANITARY) Based on Sight Distance STOPPING SE WER.(STORM) FEWER MANHOLE Height of eye / Height of Object 3.5' / 2.0' HANDHOLE I E1H Design Speed not achieved at: N/A a r : m THIS PLAN AND /OR SPECIFICATION WAS PREPARED SPECIFICALLY FOR THIS PROJECT, AND ANY RE -USE OF DETAILS THE SUBSURFACE UTILITY INFORMATION IN THIS PLAN IS UTILITY QUALITY LEVEL D. S.A.Pe __ -1 0 9 -109-033 OR SPECIFICATIONS ON OTHER PROJECTS IS NOT INTENDED OR AUTHORIZED BY THE DESIGNER. LIABILITY FOR THIS QUALITY LEVEL WAS DETERMINED ACCORDING TO GUIDELINES OF CI /ASCE 3R -02. - -- - -- - -- -- - --- -- --- ---- ---- -- Q n ANY RE -USE ON OTHER PROJECTS IS THE RESPONSIBILITY OF THE PERSON, AGENCY, OR CORPORATION USING ENTITLED "STANDARD GUIDELINES FOR THE COLLECTION AND DEPICTION OF EXISTING SHEET NO ....... 1....... OF ....4 $.... SHEETS PLAN OR SPECIFICATION DATA FROM THIS PROJECT. SUBSURFACE UTILITY DATA ". • I I ❑❑ I � I f \� `69TH AVENUE J I I a - X \ BEGIN SAP 109- 109 -033 ' I W Q �\ ING ST E 100 +00.00 I I � _110 J 68TH A -� \� 105 —_ ��J V FNVE � o I ��J_ 1p0. � . �❑,. .� _ 27 Co' 30 41 36 t� 27 41 I W Q J �J �I UJ I JI �� I I \ � � -��� - 67TH AVENUE UJ \ \ I I SHINGLE CREEK PARKWAY PARKWAY CIRCLE — II o JJ / o 3 -- i - -- I SHINGLE CREEK — F 37 Ln \J \ \ JF f qY END SAP 109 -109 -033 SHINGLE STA 137 +45. 11 � } J' o FRE EWAY BOULEVARD — — LEGEND PROPOSED CONSTRUCTION \ / I I XX TOPOG SHEET NOD UTILITY PLAN g XX CONSTRUCTION PLAN SHEET N0. STORM XX WATER POLLUTION PREVENTION M PLAN SHEET NO. XX STRIPING PLAN SHEET NO. 0 200 400 \ e scale In teat li I� e L m I hereby certify that thts Plan, specification, or evort STATE AID PROJECT N0. DRAWN BY s Prepared by ear nder my threat son and STATE 9-033 0. BERUeE CITY OF BROOKLYN CENTER SHEET that I am a duly Licensed Professional Engineer under d + the laws of the state at Minnesota. DESIGNED BY CONSULTING 2 .,gym Print Name: JONATHAN MCPHERSON D.BERUBE GENERAL LAYOUT CITY PROJECT N0. CHECKED BY T SHINGLE CREEK PARKWAY & UNITY AVENUE OF NO DATE BY CKD APPR REVISION 2011 -05 J. MCPHERSON GROUP, I NC. \7328 \hl -mu \plan \7328_g101.dgn 47160 2011 -06 COMM. NO. 7328 4° Date License u - 1 LEGEND • 0 200 400 1 PROPOSED CONSTRUCTION scale In feet XX TOPOGRAPHY AND UTILITY PLAN SHEET NO. XX CONSTRUCTION PLAN SHEET NO. STORM WATER POLLUTION PREVENTION [ — X — X — ] PLAN SHEET NO. XX WEIR RECONSTRUCTION SHEET NO. END PROJEC NO. 2011 -06 UNITY STA 229 +96.31 UNITY AVENUE BEG PROJECT NO. 2011 -06 UNITY STA 200 +00.00 O 2 38 - - -� 200 I ���� (�210��� ��� IIII I _205 _ _ �� %' 220 lb g 0 6) ` ID 32 3B O t� U � �\� 9G I < Ld _— I _ - -= II 10 L IIII I -- REGENT AVE. E. N. I I J il l I m I I I — •�� ��� i QUAIL AVE. N._� H Z = 11 �� a =oJ -PERRY AVE. N.- ��U gy p• / CIO 0 I IIII I� II 0/ is a E • L hereb certi +he+ this pion, or repert STATE AID PROJECT No. DRAWN BER BY CITY OF BROOKLYN CENTER s prepared e or und duly etl Prof er my mrect sn and 109 - 109 - 033 D. BERUBE SHEET N that I am duly Licensessional Engineer under the laws p'f the state pf Minnesota. DESIGNED Br CONSULTING 3 e�m Print Name: JONATHAN MCPHERSON D.BERUBE GENERAL LAYOUT CITY PROJECT No. CHECKED BY T SHINGLE CREEK PARKWAY & UNITY AVENUE OF ° 'wn NO DATE BY CKD APPR REVISION 2011 -05 J. MCPHERSON GROUF� INC. 2011 -06 go „N .. \7328 \hi -mu \plan \7328 _g 102. dgn Date License » 47160 COMM. NO. 7328 City Council Agenda Item No. 6f 1 • COUNCIL ITEM MEMORANDUM ® DATE: February 22, 2011 TO: Curt Boganey, City Manager FROM: Steve Lillehaug, Director of Public Works /City Engineer SUBJECT: Resolution Accepting Bid and Awarding a Contract, Improvement Project Nos. 2010 -16, Shingle Creek Restoration Improvements Recommendation: It is recommended that the City Council consider approval the lowest responsible bid and award a contract to Minnesota Native Landscapes, Inc., for Improvement Project No. 2010 -16, Shingle Creek Restoration Improvements. Background: Bids for the Shingle Creek Restoration Improvements, Project No. 2010 -16, Contract 2010 -I were received and opened on February 18, 2011. The bidding results are tabulated below: BIDDER TOTAL Minnesota Native Landscapes, Inc. S 233,055.05 ** Stocker Excavating, Inc. $ 283,299.15 Sunram Construction, Inc. $ 286,666.90 Minnesota Dirt Works, Inc. $ 288,667.15 Park Construction Co. $ 372,669.73 Hardrives, Inc. $17,654,361.46 ** "Results shown above for Minnesota Native Landscapes, Inc., and Hardrives, Inc., include corrections in total bid amount due to mathematical errors on their bid form. Corrections do not change the lowest bidder. Of the six (6) bids received, the lowest bid of $233,055.05 was submitted by Minnesota Native Landscapes, Inc., of Otsego, Minnesota. Minnesota Native Landscapes, Inc., and has the experience, equipment and capacity to qualify as the lowest responsible bidder for the project. Budget Issues: The bid amount of $233,055.05 is within the 2010 budgeted amount (see attached Resolution — Costs and Revenue tables). The total estimated budget was $520,000 and is amended to $367,055.05, an approximate 29 percent decrease. Council Goals: Strategic: 6. We will respond to increased public awareness and interest in environmental sustainability and green community issues Ongoing: e 6. We will ensure the City drinking water is high quality and that the storm water is properly managed LPtsstvn: Ensuring an rtltruUme c ., ... .._... . lean, sine earnmuniry that enhances the yualitt� of life andlrreserves the public trust its adoption: Member introduced the following resolution and moved • RESOLUTION NO. RESOLUTION ACCEPTING BID AND AWARDING A CONTRACT, IMPROVEMENT PROJECT NO. 2010 -16, SHINGLE CREEK RESTORATION IMPROVEMENTS WHEREAS, pursuant to an advertisement for bids for Improvement Project No. 2010 -16, bids were received, opened, and tabulated by the City Clerk and Engineer on the 18 day of February, 2011. Said bids were as follows: BIDDER TOTAL Minnesota Native Landscapes, Inc. $ 233,055.05 ** Stocker Excavating, Inc. $ 283,299.15 Sunram Construction, Inc. $ 286,666.90 Minnesota Dirt Works, Inc. $ 288,667.15 Park Construction Co. $ 372,669.73 Hardrives, Inc. $17,654,361.46 ** * *Results shown above for Minnesota Native Landscapes, Inc., and Hardrives, Inc., include corrections in total bid amount due to mathematical errors on their bid form. Corrections do • not change the lowest bidder. WHEREAS, it appears that Minnesota Native Landscapes, Inc., of Otsego, Minnesota is the lowest responsible bidder. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that: 1. The Mayor and City Manager are hereby authorized and directed to enter into a contract with Minnesota Native Landscapes, Inc., of Otsego, Minnesota in the name of the City of Brooklyn Center, for Improvement Project No. 2010 - 16, according to the plans and specifications therefore approved by the City Council and on file in the office of the City Engineer. 2. The estimated project costs and revenues are as follows: Amended COSTS Estimated per Low Bid Contract $ 386,000.00 $ 233,055.05 Contingency $ 56,000.00 $ 56,000.00 Admin/Legal/Engr. $ 78,000.00 $ 78,000.00 • Total Estimated Project Cost $ 520,000.00 $ 367,055.05 e RESOLUTION NO. Amended REVENUES Estimated per Low Bid Shingle Creek Watershed $ 127,500.00 $ 127,500.00 Commission Clean Water Legacy Grant $ 105,237.00 $ 105,237.00 Hennepin County (4.5 %) $ 23,000.00 $ 16,500.00 City of Brooklyn Center (TIF 2) $ 264,263.00 $ 117.818.05 Total Estimated Revenue $ 520,000.00 $ 367,055.05 Feburary 28 2011 Date Mayor ATTEST: City Clerk • The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. City Council Agenda Item No. 6g 1 • COUNCIL ITEM MEMORANDUM DATE: February 23, 2011 TO: City Council FROM: Mayor Tim Willson Prepared by: Curt BoganeA SUBJECT: Resolution supporting a strong effective Metropolitan Council for the Twin Cities Region Recommendation: It is recommended that the City Council consider approval /adoption of the subject resolution. Background: The City Of Minneapolis has adopted a resolution supporting the attached regional decision - making and regional policy and funding priorities and governance. Council President Johnson and Council Member Glidden forwarded this action to Mayor Willson. Mayor Willson has requested that we place the subject resolution on the Council Agenda for Consideration. The resolution enclosed is closely modeled after the resolution adopted by the City of Minneapolis. If adopted, copies will mailed to the Governor and our State Legislators. Budget Issues: There are no budget issues to consider. Council Goals: Select not more than two. Ongoing: We will ensure the city influence at the legislature Mission: Gusnring an urhuctn e, clean, safe curnnxunitV drat enhances 1ke quatrly of iJe and preserves the public trust Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION SUPPORTING A STRONG, EFFECTIVE METROPOLITAN COUNCIL FOR THE TWIN CITIES REGION WHEREAS, the U.S. and global populations are increasingly centered in metro regions, resulting in concentrated labor, knowledge, capital, and social networks within a small percent of overall landmass; and WHEREAS, the nation's one hundred largest metro areas, like the Twin Cities region, account for two thirds of our nation's population and three quarters of our gross domestic product and a disproportionate number of jobs, commerce, patents, research, and knowledge institutions; and WHEREAS, the success of the Twin Cities region is critical to the success of our State as a whole, as it generates three fifths of the jobs for our state and three quarters of Minnesota's wealth; and WHEREAS, the Twin Cities region has shown foresight by thinking and acting as a region greater than the sum of its parts for far longer than most regions in the United States; and WHEREAS, since its creation decades ago, the Metropolitan Council has embodied regional cooperation and planning and operation of regional services; and WHEREAS, the Twin Cities region's success in applying for competitive federal funding from the Urban Partnership Agreement and the Sustainable Communities Partnership highlight the importance of regional cooperation and cross - sector collaboration around transportation, land use, and environmental protection; and WHEREAS, the need for regional cooperation and leadership by public and private entities in the area of economic development has been highlighted by the Itasca project and the Brookings Institutions' Blueprint for American Prosperity; and WHEREAS, despite policies and goals to increase housing density, the Twin Cities have become known for decentralized jobs and housing, ranking 9 of 12 peer regions in urban area density; and WHEREAS, the social equity implications of dispersed jobs makes it hard for low - wage earners to find housing near work; and WHEREAS, the Twin Cities' ability to respond to issues of sustainability, energy usage, high oil and gas prices, and affordability may depend on our ability to align multi -modal transportation choices and housing and jobs in compact areas; and RESOLUTION NO. WHEREAS, the only way that our state — or our nation — will be able to effectively prosper and compete in a global economy is by investing in the sustainability, continued growth, and success of our metro regions; and WHEREAS, now, more than ever, we need a strong Metropolitan Council to engage the region's leadership, manage the tools, and leverage the assets our region needs to compete in a global economy. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that in developing policy the City of Brooklyn Center recommends that the Metropolitan Council incorporate the following principles for Regional Decision - making: 1. Collaborate with local government, the private sector, advocacy and non- profit organizations, and other partners to foster a unified vision and achieve regional goals. 2. Have clear lines of accountability to the people of the region, private and public stakeholders, and local government and strong, unambiguous means to measure that accountability. 3 Align public policy decisions and public investment decisions with a comprehensive plan and the region's vision for economic development. 4. Leverage public and private partnerships and maximize resources in order to aggressively and proactively pursue federal and state resources. BE IT FURTHER RESOLVED that the City of Brooklyn Center recommends that the Metropolitan Council consider the following Regional Policy and Funding Priorities: 1. Provide leadership with public and private partners in setting a regional economic development vision that supports growth and guides growth for our region. 2. Adopt and implement policies to eliminate racial disparities and reverse racial and economic segregation trends that threaten our region's economic strength. 3. Take an active role in the planning, development, and continued sustainability of large public facilities within the region. 4. Define and strengthen existing job and activity centers and align land use, transit opportunities, housing density, commercial investment, open space and recreation and transit opportunities along existing connecting corridors. 5. Invest resources in integrated transit systems and maintain and improve existing roadways and bridges. 6. Prioritize maintenance and improvement of existing infrastructure and projects that integrate investments in regional systems with development. RESOLUTION NO. • 7. Adopt policies that protect the region's natural environment. BE IT FURTHER RESOLVED that in selecting members to the Metropolitan Council, the City of Brooklyn Center recommends: 1. That the Governor, per Minn. Stat. Sec. 473.123, appoint Met Council members that: a. Reflect the demographic and political composition of the district; b. Be knowledgeable about urban and metropolitan affairs; and C. Meet regularly with locally elected officials and legislative members from the councilmember's district. 2. That the Governor should consider additional qualifications for Met Council members, including that members: a. Support the need for a regional governance organization; and b. Demonstrate interest in regional issues or public service through service on local government boards or commissions or other relevant community or professional activities. BE IT FURTHER RESOLVED that the City of Brooklyn Center recommends that the Legislature restructure the governance of the Met Council to provide more direct accountability to voters and local government by including locally - elected officials in a Council of Governments model which reflects the following: 1. A majority of council members shall be locally elected city and county officials: a. A combination of population and communities of interest (central cities, developed area, and developing area) should guide the apportionment of local elected council members; b. Representation on the governing board should be proportional to the city and county responsibility for land use, waste water, community development, housing, parks and open space, transportation, and environment protection. 2. The Governor shall maintain power of appointment, with Senate confirmation, for a minority of councilmember positions. RESOLUTION NO. February 28, 2011 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. Curt Boganey From: Tim Willson Sent: Sunday, February 20, 2011 7:57 PM To: Curt Boganey Subject: MPLS Resolution Regarding the Met Council Attachments: MPLS1- Res - Met- Council.JPG; MPLS2- Res - Met- Council.JPG; MPLS3- Res - Met- Counci.JPG; MPLS4- Res - Met- Counci.JPG; MPLS5- Res - Met- Counci.JPG Curt The resolution from MPLS looks to be a resolution we can support. Maybe change the name from MPLS to Brooklyn Center and on our next agenda a Council action to support the resolution. Not sure the Governor has made all the Met Council appointments yet but over all the language is supportable. -tw Mayor Tim Willson Brooklyn Center 763- 569 -3450 www.cityofbrooklyncenter.orp/ Start by doing what's necessary, Then do what's possible, You'll discover you are doing, What you previously thought was Impossible. "Please consider your environmental responsibility before printing this e- mail" 1 A February 1, 2011 The Honorable Tim Willson Minneapolis City of Brookly Center City of Lakes 6301 Shingle Creek Parkway City Council Brooklyn Center, MN 55430 Elizabeth G lidden Re: Metropolitan Council Council Member, Eighth Ward 350 South 5th Street- Room 307 year Mayor Willson: Minneapolis MN 55415.1383 Office 612 673 -2208 I write to share with you a Resolution adopted by the City Council and Mayor Fax 612 673.3940 11r 612 673 -2157 of Mira supporting a strong, effective Metropolitan Council and elizabeth .glidden @ci.minneapolis.mn.us providing reconmiendations in the areas of regional decision - making, regional policy and funding priorities, and governance. In early 2010. Mira formed a Metropolitan Council Work Group to prepare for a transition in leadership for the Metropolitan Council, as well as examining the increasingly important role of regional cooperation and governance. Enhancing the City's communication and cooperation with the Metropolitan Council, reviewing the impact of emerging federal policy focused on regions, and discussing optimal governance relationships on regional matters were some goals of our work group. The health and vitality of the Twin Cities region is critical to the success of our State as a whole. Our metropolitan region generates three fifths of the jobs for our State and three quarters of Minnesota's wealth. Recent efforts by the Itasca Project and the Urban Land Institute are just some of the initiatives that stress the importance of regional cooperation, rather the success of individual cities and counties. The Metropolitan Council is a national model for regional planning and service delivery, with the Central Corridor just one example of its many accomplishments to celebrate. The Metropolitan Council will continue to play a major role in addressing our socio- economic challenges as it provides a framework for regional planning and priorities. We welcome the opportunity to discuss our recommendations for the Metropolitan Council with you. Please contact us if you have questions or would like further information. Sincerely, +� J -- t Barbara Johns n Elizabeth Glidden City Council President Chair, Intergovernmental Relations Subcommittee www.ci.minneapolis.mn.us Encl. Affirmative Action Employer Resolution of the City of Minneapolis By Glidden Supporting a strong, effective Metropolitan Council for the Twin Cities Region. Whereas, the U.S. and global populations are increasingly centered in metro regions, resulting in concentrated labor, knowledge, capital and social networks within a small percent of overall landmass, and Whereas, the nation's one hundred largest metro areas, like the Twin Cities region, account for two thirds of our nation's population and three quarters of our gross domestic product and a disproportionate number of jobs, commerce, patents, research and knowledge institutions; and Whereas, the success of the Twin Cities region is critical to the success of our State as a whole, as it generates three fifths of the jobs for our state and three quarters of Minnesota's wealth; and Whereas, the Twin Cities region has shown foresight by thinking and acting as a region greater than the sum of its parts for far longer than most regions in the United States; and Whereas, since its creation decades ago, the Metropolitan Council has embodied regional cooperation and planning and operation of regional services; and Whereas, the Twin Cities region's success in applying for competitive federal funding from the Urban Partnership Agreement and the Sustainable Communities Partnership highlight the importance of regional cooperation and cross - sector collaboration around transportation, land use, and environmental protection; and Whereas, the need for regional cooperation and leadership by public and private entities in the area of economic development has been highlighted by the Itasca project and the Brookings Institutions' Blueprint for American Prosperity; and Whereas, despite policies and goals to increase housing density, the Twin Cities have become known for decentralized jobs and housing, ranking 9 of 12 peer regions in urban area density, and Whereas, the social equity implications of dispersed jobs makes it hard for low -wage earners to find housing near work; and Whereas, the Twin Cities' ability to respond to issues of sustainability, energy usage, high oil and gas prices, and affordability may depend on our ability transportation choices and housing to align multi-modal g and jobs in compact areas; and Whereas, The only way that our state — or our nation — will be able to effectively prosper and compete in a global economy is by investing in the sustainability, continued growth and success of our metro regions; and Whereas, now, more than ever, we need a strong Metropolitan Council to engage the region's leadership, manage the tools, and leverage the assets our region needs to compete in a global economy; and Whereas, as Minnesota's largest city, the City of Minneapolis stands ready to work with our partners to build a stronger, more effective Metropolitan Council and in the process build a regional economy that competes globally; Now, Therefore, Be It Resolved by The City Council of The City of Minneapolis: That in developing policy the City of Minneapolis recommends that the 'I incorporate the following principles etropolitan Counci g for Regional Decision- p P making: • Collaborate with local government, the private sector, advocacy and non- profit organizations, and other partners to foster a unified vision and achieve regional goals. • Have clear lines of accountability to the people of the region, private and public stakeholders, and local government and strong, unambiguous means to measure that accountability. • Align public policy decisions and public investment decisions with a comprehensive plan and the region's vision for economic development. • Leverage public and private partnerships and maximize resources in order to aggressively and proactively pursue federal and state resources; and Be It Further Resolved that the City of Minneapolis recommends that the Metropolitan Council consider the following Regional Policy and Funding Priorities: Whereas, the social equity implications of dispersed jobs makes it hard for low -wage earners to find housing near work; and Whereas, the Twin Cities' ability to respond to issues of sustainability, energy usage, high oil and gas prices, and affordability may depend on our ability to align multi -modal transportation choices and housing and jobs in compact areas; and Whereas, The only way that our state — or our nation — will be able to effectively prosper and compete in a global economy is by investing in the sustainability, continued growth and success of our metro regions; and Whereas, now, more than ever, we need a strong Metropolitan Council to engage the region's leadership, manage the tools, and leverage the assets our region needs to compete in a global economy; and Whereas, as Minnesota's largest city, the City of Minneapolis stands ready to work with our partners to build a stronger, more effective Metropolitan Council and in the process build a regional economy that competes globally; Now, Therefore, Be It Resolved by The City Council of The City of Minneapolis: That in developing policy the City of Minneapolis recommends that the Metropolitan Council incorporate the following principles for Regional Decision - making: • Collaborate with local government, the private sector, advocacy and non- profit organizations, and other partners to foster a unified vision and achieve regional goals. • Have clear lines of accountability to the people of the region, private and public stakeholders, and local government and strong, unambiguous means to measure that accountability. • Align public policy decisions and public investment decisions with a comprehensive plan and the region's vision for economic development. • Leverage public and private partnerships and maximize resources in order to aggressively and proactively pursue federal and state resources; and Be It Further Resolved that the City of Minneapolis recommends that the Metropolitan Council consider the following Regional Policy and Funding Priorities: • Provide leadership with public and private partners in setting a regional economic development vision that supports growth and guides growth for our region. • Adopt and implement policies to eliminate racial disparities and reverse racial and economic segregation trends that threaten our region's economic strenoth. • 4 ake an act role x ttia"i it:�, vef=li t ar act sustainabii ty c r °ge ',. b lic • Define and strengthen existing job and activity centers and align land use, transit opportunities, housing density, commercial investment, open space and recreation and transit opportunities along existing connecting corridors. • Invest resources in integrated transit systems and maintain and improve existing roadways, and bridges. • and improvement of existing infrastructure and Prioritize maintenance p. ,, p ro integrate investments in regional systems with projects that g development. • Adopt policies that protect the region's natural environment, and Be It Further Resolved that in selecting members to the Metropolitan Council, the City of Minneapolis recommends: • That the Governor per Minn. Stat. Sec 473.123, appoint Met Council members that: Reflect the demographic and political composition of the district; Be knowledgeable about urban and metropolitan affairs; Meet regularly with locally elected officials and legislative members from the councilmember's district; and • That the Governor should consider additional qualifications for Met Council members, including that members: Support the need for a regional governance organization. Demonstrate interest in regional issues or public service through service on local government boards or commissions or other relevant community or professional activities; and City Council Agenda Item No. 6h 1 • COUNCIL ITEM MEMORANDUM DATE: 23 February 2011 TO: Curt Bo ane City Manager g Y� Y g FROM: Daniel Jordet, Director of Fiscal & Support Services SUBJECT: Statutory Tort Liability Limits Recommendation: It is recommended that the City Council consider approval /adoption of the. attached resolution adopting the no waiver option for statutory tort liability insurance be adopted by the City Council. Background: Each year the City must chose whether to waive tort liability limit protections of Minnesota Statutes 466.04 as part of the insurance policy renewal application process. M.S. 466.04 states that the maximum liability for a city for any claim arising after 1 January 2010 is $ 500,000 with an aggregate maximum of $ 1,500,000 per incident. In past years the City Council has chosen not to waive the liability limits and the regular premium for insurance has covered all claims. If the City were to waive the limits set by statute, it would be prudent to purchase additional insurance coverage to cover possible higher awards in liability claims. Premiums for such insurance would exceed $ 9,000 per year. Budget Issues: The 2011 budget anticipates leaving the no waiver option in place for 2011 and has anticipated insurance premiums based on that no waiver option. Waiving the statutory limits would require that at least $ 9,000 in additional premium costs be allocated for 2011 and in each succeeding year. Council Goals: Ongoing: 1. We will provide streamlined, cost effective, quality services with limited resources 2. We will ensure the financial stability of the City 111ission: Ensuring an attractive, clean, safe conununity that enhances the quality- of life and preserves the public trust �� Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION OPTING NOT TO WAIVE LIMITED TORT LIABILITY FOR 2011 WHEREAS, the City of Brooklyn Center has an option to waive its protection under the tort liability limitation contained in Minnesota Statutes 466.04; and WHEREAS, the statutory tort limit for 2011 is $ 500,000 per individual with an aggregate of $ 1,500,000 per incident; and WHEREAS, the City of Brooklyn Center has not opted to waive its rights to limited tort liability in past years and is required to make a declaration of its intention every year. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the City does not waive the monetary limits on municipal tort liability established by Minnesota Statutes 466.04 for 2011. February 28, 2011 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. City Council Agenda Item No. 6i COUNCIL ITEM MEMORANDUM TO: Curt Boganey, City Manager FROM: Daniel Jordet, Director of Fiscal & Support Services DATE: 23 February 2011 SUBJECT: Audit Letter of Engagement Recommendation: It is recommended that the City Council adopt the attached resolution authorizing the Mayor and City Manager to execute the Letter of Engagement for audit services provided by Malloy, Montague, Karnowski, Radosevich & Co. in connection with the audit and review of the 2010 annual financial report. Background: Each year the City Council hires an independent CPA firm to audit the City's financial statements contained in the Comprehensive Annual Financial Report (CAFR). In connection with the audit the CPA firm prepares a Management Letter for the Council pointing out highlights of the financial statements and suggesting ways that the financial reporting system might be improved. Occasionally there are items of concern that the auditors raise as findings or reportable conditions. The audit process includes review of the financial statements, comparison of the actual results with budgeted allocations, review of the internal control system of the City, compliance with state and federal accounting and reporting procedures, and preparation and presentation of the audit report and a Management Letter. The audit of the 2010 financial statements will be performed by the firm of Malloy, Montague, Karnowski, Radosevich & Co. (MMKR). This is the fourth time they will perform the City's annual audit. After a three year fixed cost commitment obtained through the 2007 audit RFP, MMKR offered a new three year cost commitment adopted by the City Council in September of 2010. The not -to- exceed cost for the 2010 audit has been fixed at $ 38,500 which is $ 350 less than the 2009 audit agreement. During the audit of the 2010 CAFR they will review the financial statements in order to provide an opinion on the fairness of the presentation of the basic financial statements. They will also review supplementary information and indicate whether that information supports the fair presentation of the basic financial statements. They will use standards promulgated by generally accepted accounting principles, the Comptroller General of the United States through the Government Auditing Standards publication, the Government Accounting Standards Board (GASB) through its pronouncements and statements, and the State of Minnesota through the Legal Compliance Audit Guide prepared by the State Auditor's Office. They will review internal control procedures and report any important weaknesses they find to the City Council. They will also prepare a Management Letter to the City Council giving a general analysis of the City's financial situation. Is Further details of the agreement to audit the City's financial statements are included in the attached form of the Letter of Engagement. Financial Impact: The proposed fee for this service on the 2010 financial statements is $ 39,500 plus reasonable out -of- pocket expenses. In addition, MMKR will be required to perform an A -133 Federal Single Audit of federal funds received because the City received more than $ 500,000 in federal funds in 2010. The 2011 budget contains a total of $ 41,300 in designated accounts in the General Fund, EDA fund, and all Enterprise type funds. Any additional funds required for completion of the A -133 Single Audit will be charged to the project that received the federal funds. The proposed engagement is within the budgeted allocation. • PRINCIPALS Kenneth W Malloy, CPA MMKR Thomas M. Montague, CPA Thomas A. Karnowski, CPA Paul A. Radosevich, CPA E R T I F I ED PUBLIC William J. Lauer, CPA C O U N T A N T S James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA February 4, 2011 To the City Council of the City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 -2199 Dear Councilmembers: We are pleased to confirm our understanding of the services we are to provide the City of Brooklyn Center (the City) for the year ended December 31, 2010. We will audit the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information, which collectively comprise the City's basic financial statements as of and for the year ended December 31, 2010. Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI), such as the Management's Discussion and Analysis (MD &A), to supplement the City's basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board (GASB) who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the City's RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by accounting principles generally accepted in the United States of America and will be subjected to certain limited procedures, but will not be audited: 1. Management's Discussion and Analysis 2. Required Supplementary Information 3. GASB required other post- employment benefits (OPEB) information (as needed) Supplementary information other than RSI also accompanies the City's financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America and will provide an opinion on it in relation to the financial statements as a whole: 1. Combining and individual fund statements and schedules 2. Schedule of Expenditures of Federal Awards (if required) Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Telephone: 952 -545 -0424 • Telefax: 952- 545 -0569 • www.mmkr.com I City Y of Broo Center Page e 2 February 4, 2011 Supplementary information other than RSI also accompanies the City's financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America and will provide an opinion on it in relation to the financial statements as a whole: 1. Combining and individual fund statements and schedules 2. Schedule of Expenditures of Federal Awards (if required) The following other information accompanying the financial statements will not be subjected to the auditing procedures applied in our audit of the financial statements, and for which our auditor's report will not provide an opinion or any assurance: 1. Statistical tables 2. Introductory section We will perform the required State Legal Compliance Audit conducted in accordance with auditing standards generally accepted in the United States of America and the provisions of the Legal Compliance Audit Guide, promulgated by the State Auditor pursuant to Minnesota Statute § 6.65, and will include tests of the accounting records and other procedures we consider necessary to enable us to conclude that, for the items tested, the City has complied with the material terms and conditions of applicable legal provisions. We will also prepare a management report for the City Council and administration. This report will communicate such things as our concerns regarding accounting procedures or policies brought to our attention during our audit, along with recommendations for improvements. The report will also contain certain financial comparisons and analysis, and other information of interest. Audit Objectives The objective of our audit is the expression of opinions as to whether your basic financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America and to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the basic financial statements taken as a whole. The objective also includes reporting on: • Internal control related to the financial statements and compliance with laws, regulations, and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards. • Internal control related to major programs and an opinion (or disclaimer of opinion) on compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. The reports on internal control and compliance will each include a statement that the report is intended solely for the information and use of management, the body or individuals charged with governance, other within the City, specific legislative or regulatory bodies, federal awarding agencies, and if applicable, pass- through entities and is not intended to be and should not be used by anyone other than these specified parties. City of Brooklyn Center Page 3 February 4, 2011 Our audit will be conducted in accordance with generally accepted auditing standards established in the United States of America; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Ace Amendments of 1996; and the provisions of OMB Circular A -133, and will include tests of accounting records, a determination of major program(s) in accordance with OMB Circular A -133, and other procedures we consider necessary to enable us to express such opinions and to render the required reports. If our opinions on the financial statements or the Single Audit compliance opinions are other than unqualified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or to issue a report as a result of this engagement. Management Responsibilities Management is responsible for the basic financial statements and all accompanying information as well as all representations contained therein. Management is also responsible for identifying government award programs and understanding and complying with the compliance requirements, and for preparation of the Schedule of Expenditures of Federal Awards in accordance with the requirements of OMB Circular A- 133. As part of the audit, we will assist in the preparation of your Schedule of Expenditures of Federal Awards and related notes. You are responsible for making all management decisions and performing all management functions relating to the financial statements, Schedule of Expenditures of Federal Awards, and related notes and for accepting full responsibility for such decisions. You will be required to acknowledge in the management representation letter our assistance with the preparation of the Schedule of Expenditures of Federal Awards and that you have reviewed and approved the Schedule of Expenditures of Federal Awards, and related notes prior to their issuance and have accepted responsibility for them. Further, you are required to designate an individual with suitable skill, knowledge, or experience to oversee any nonaudit services we provide and for evaluating the adequacy and results of those services and accepting responsibility for them. Management is responsible for establishing and maintaining effective internal controls, including internal controls over compliance, and for evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met and that there is reasonable assurance that government programs are administered in compliance with compliance requirements. You are also responsible for the selection and application of accounting principles; and for the fair presentation in the financial statements of the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City and the respective changes in financial position and where applicable, cash flows in conformity with accounting principles generally accepted in the United States of America; and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is also responsible for making all financial records and related information available to us and for ensuring that management and financial information is reliable and properly recorded. Your responsibilities also include identifying significant vendor relationships in which the vendor has responsibility for program compliance and for the accuracy and completeness of that information. Management's responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. City Y of Brooklyn Center Page 4 February 4, 2011 You are responsible for the design and implementation of programs and controls to prevent and detect . fraud, and for informing us about all known or suspected fraud or illegal acts affecting the City involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud or illegal acts could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the City received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the City complies with applicable laws, regulations, contracts, agreements, and grants. Additionally, as required by OMB Circular A -133, it is management's responsibility to follow up and take corrective action on reported audit findings and to prepare a summary schedule of prior audit findings and a corrective action plan. The summary schedule of prior audit findings should be available for our review at the conclusion of the engagement. You are responsible for the preparation of the supplementary information in conformity with accounting principles generally accepted in the United States of America. You agree to include our report on the supplementary information in any P PP document that contains and indicates that we have reported on the supplementary arY information. You also agree to present the supplementary information with the audited financial statements or make the audited financial statements readily available to users of the supplementary information no later than the date the supplementary information is issued with our report thereon. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying for us previous financial audits, attestation engagements, performance audits, or other studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management's views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the reports, and for the timing and format for providing that information. Audit Procedures — General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. We will plan and perform the audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the City or to acts by management or employees acting on behalf of the City. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse. Because an audit is designed to provide reasonable, but not absolute assurance and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements or noncompliance may exist and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements or major program. However, we will inform you of any material errors and any fraudulent financial reporting or misappropriation of assets that come to our attention. We will also inform you of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential and of any material abuse that comes to our attention. We will include such matters in the reports required for a Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend to later periods for which we are not engaged as auditors. City of Brooklyn Center Page 5 February 4, 2011 ® Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the financial statements and related matters. Audit Procedures — Internal Controls Our audit will include obtaining an understanding of the City and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. As required by OMB Circular A -133, we will perform tests of controls over compliance to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal award program. However, our tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to OMB Circular A -133. An audit is not designed to provide assurance on internal control or to identify significant deficiencies. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards, Government Auditing Standards, and OMB Circular A -133. Audit Procedures — Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the City's compliance with applicable laws and regulations and the provisions of contracts and agreements, including grant agreements. However, the objective of those procedures will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. OMB Circular A -133 requires that we also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with applicable laws and regulations and the provisions of contracts and grant agreements applicable to major programs. Our procedures will consist of tests of transactions and other applicable procedures described in the OMB Circular A -133 Compliance Supplement and related addenda for the types of compliance requirements that could have a direct and material effect on each of the City's major programs. The purpose of these procedures will be to express an opinion on the City's compliance with requirements applicable to each of its major programs in our P ty P q PP J P �' report on compliance issued pursuant to OMB Circular A -133. Audit Administration, Fees, and Other We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any documents selected by us for testing. City of Brooklyn Center Page 6 February 4, 2011 The assistance to be supplied by your personnel, including the preparation of schedules and analysis of accounts, typing all cash or other confirmations we request, and locating any invoices select by us for testing, will be discussed and coordinated with you. We will provide copies of our reports to City; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. At the conclusion of the engagement, we will complete the appropriate sections of and sign the Data Collection Form that summarized our audit findings. We will provide copies of our reports to the City; however, it is management's responsibility to submit the reporting package (including financial statements, Schedule of Expenditures of Federal Awards, summary schedule of prior audit findings, auditors' report, and corrective action plan) along with the Data Collection Form to the designated federal clearinghouse and, if appropriate, to pass- through entities. We will coordinate with you the electronic submission and certification. If applicable, we will provide copies of our report for you to include with the reporting package you will submit to pass- through entities. The Data Collection Form and the reporting package must be submitted within the earlier of 30 days after receipt of the auditors' reports or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audits. At the conclusion of the engagement, we will coordinate with you the electronic submission and certification. The audit documentation for this engagement is the property of Malloy, Montague, Karnowski, Radosevich & Co., P.A. (MMKR) and constitutes confidential information. However, pursuant to authority given by law or regulation, we may be requested to make certain audit documentation available to a regulatory agency or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carryout oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of MMKR personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of five years after the report release date or for any additional period requested by the regulatory agency. If we are aware that a federal awarding agency, pass - through entity, or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation. James H. Eichten, CPA is the engagement partner and is responsible for supervising the engagement and signing the report. Our fees for these services will be based on the actual time spent at our standard hourly rates. We will also bill you for travel and other out -of- pocket costs such as report production, typing, postage, etc. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable upon presentation. Unless additional work is requested, or circumstances require additional work, our fees will be as described in the Technical Proposal for Professional Auditing Services, which outlined a total all - inclusive maximum price for the audit of $38,500. This price does not include an audit in accordance with the Single Audit Act Amendments of 1996 and OMB Circular A -133, which would only be required if the City expended $500,000 or more in federal assistance funds during the year. If the City is required to have a Single Audit of federal assistance funds, the price would need to be modified. City of Brooklyn Center Page 7 February 4, 2011 The fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If we find that additional audit procedures are required, or if additional services are requested by the City, those services will be billed at our standard hourly rates. Additional audit procedures might be required for certain accounting issues or events such as new contractual agreements, transactions and legal requirements of new bond issues, new funds, major capital projects, new tax increment districts, if there is an indication of misappropriation or misuse of public funds, or if significant difficulties are encountered due to the lack of accounting records, incomplete records, or turnover in the City's staff. With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. If you intend to publish or otherwise reproduce the financial statements, such as in a bond statement, and make reference to our firm name, you agree to provide us with printers' proofs or masters for our review and approval before printing. You also agree to provide us with a copy of the final reproduced material for our approval before it is distributed. Government Auditing Standards require that we provide you with a copy of our most recent external peer review report and any letter of comment, and any subsequent peer review reports and letters of comment received during the period of the contract. Our most recent peer review accompanies this letter. We appreciate the opportunity to be of service to the City and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Sincerely, ?H. NTAGUE, KARNOWSKI, RADOSEVICH & CO., P.A. n, CPA Response: This letter correctly sets forth the understanding of the City of Brooklyn Center. By: By: Title: Title: Date: Date: Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF A LETTER OF ENGAGEMENT FOR PROFESSIONAL AUDIT SERVICES FOR THE 2010 FISCAL YEAR WHEREAS, the City of Brooklyn Center last solicited Requests for Proposals (RFP's) for auditing services in 2007; and WHEREAS, the firm Malloy, Montague, Karnowski, Radosevich & Co. was the successful proposer in that process; and WHEREAS, the 2010 fiscal year is the fourth year in the engagement proposed by the 2007 RFP; and WHEREAS, Malloy, Montague, Karnowski, Radosevich & Co. has proposed a scope of work and fees schedule consistent with budgetary expectations. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that Malloy, Montague, Karnowski, Radosevich & Co. be retained to perform and complete the audit of the 2010 Comprehensive Annual Financial Statements and accompanying reports at a cost not to exceed $38,500. Additional costs for an A-133 Federal Single Audit will be charged to the project receiving the federal funds generating the audit requirement. The Mayor and City Manager are hereby authorized to execute a Letter of Engagement for said services. February 28, 2011 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. City Council Agenda Item No. 7a COUNCIL ITEM MEMORANDUM DATE: 2/22/11 O: Curt Bogancy, City Manager PROM: Jim Glasoe, Director of Community Activities- Recreation and Services S1 1BJf,CT: Resolution Expressing Recognition of and Appreciation for the Dedicated Public Service of Sharon Kephart Recommendation: Staff recommends the City Council pass the attached resolution thanking Sharon Kephart for her work related to the City of Brooklyn Center 100`" Anniversary Party. Background: Sharon Kephart worked diligently to support the City of Brooklyn Center 100t" Anniversary Party by inviting and coordinating the attendance of many dignitaries to the event. Sharon's efforts resulted in numerous National and State dignitaries attending the event and bringing proclamations, resolutions and other official actions commemorating the City's Centennial. It is fitting that we recognize the efforts of Sharon Kephart in supporting Brooklyn Center's "Party of the Century". Budget Issues: None noted. Council Goals: Ongoing: 5. We will improve the image of the City with citizens and others fJ` f,!',d Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION EXPRESSING RECOGNITION OF AND APPRECIATION FOR THE DEDICATED PUBLIC SERVICE OF SHARON KEPHART WHEREAS, Sharon Kephart provided briefing information about Brooklyn Center and the Centennial Celebration to the staff in the offices of Senator Amy Klobuchar, Senator Al Franken, Congressman Erik Paulsen, Governor Mark Dayton, Senator Linda Scheid, and Representative Debra Hilstrom; and WHEREAS, this information was used by their staffs to develop a United States Senate Resolution, United States Congressional Record, United States House Resolution, State of Minnesota Proclamation, and a Minnesota House Resolution; and WHEREAS, Sharon Kephart found a beautiful custom frame for the State of Minnesota Proclamation and matching frames for the resolutions and Congressional Record, which made for an elegant presentation; and WHEREAS, Sharon Kephart contacted, coordinated and facilitated the attendance of Senator Amy Klobuchar, Congressman Erik Paulsen, Governor Mark Dayton, Senator Linda Scheid, and Representative Debra Hilstrom to the 100th Birthday Celebration on February 5, 2011; and WHEREAS, Sharon Kephart coordinated with Congressman Erik Paulsen's office to have a flag flown over the United States Capitol for the City of Brooklyn Center in honor of the Centennial Celebration; and WHEREAS, Sharon Kephart worked diligently in the scheduling of the dignitaries to fit into the 100th Birthday Celebration program; and WHEREAS, the presence of the dignitaries provided prestige to the Centennial Celebration kick -off event; and WHEREAS, her dedicated public service and civic effort for the betterment of the community merit the gratitude of the citizens of Brooklyn Center; and WHEREAS, it is highly appropriate that her service to the community should be recognized and expressed. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that the dedicated public service of Sharon Kephart is hereby recognized and appreciated by the City of Brooklyn Center. February 28, 2011 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. City Council Agenda Item No. 7b COUNCIL ITEM MEMORANDUM DATE: 2/22/11 TO: Curt Boganey, City Manager FROM: Jim Glasoe, Director of Community Activi Recreation and Services SUBJECT: Resolution Expressing Recognition of and Appreciation for the Dedicated Public Service of the Brooklyn Center Special Events Recommendation: Staff recommends the City Council pass the attached resolution thanking the Special Events Committee for their work related to the City of Brooklyn Center 100 Anniversary Party. Background: Since the year 2000, the Special Events Committee has planned and held an annual event commemorating the City of Brooklyn Center's birthday. In 2011, the Special Events Committee organized and facilitated the City of Brooklyn Center 100 Birthday Party. This event, attended by almost 500 people, included numerous dignitaries who brought national and state proclamations, resolutions and other official actions commemorating the City's Centennial. It is fitting that we recognize the efforts of the Special Events Committee in coordinating and conducting Brooklyn Center's "Party of the Century". Budget Issues: None noted. Council Goals: Ongoing: 5. We will improve the image of the City with citizens and others Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION EXPRESSING RECOGNITION OF AND APPRECIATION FOR THE DEDICATED PUBLIC SERVICE OF THE BROOKLYN CENTER SPECIAL EVENTS COMMITTEE WHEREAS, the Brooklyn Center Year 2000 Committee incorporated with the State of Minnesota in January 2000 to bring together the civic organizations, the business community, interested citizens, the City and area school districts to celebrate the Millennium; and WHEREAS, in 2001 the Year 2000 Committee changed their name to the Brooklyn Center Special Events Committee to continue the Birthday Parry Celebration until the Centennial in 2011; and WHEREAS, the main goal of the Brooklyn Center Special Events Committee is to plan, organize, and carry out a first -rate event with the annual Brooklyn Center Birthday Party and Special Community Recognition Awards; and WHEREAS, the success of Brooklyn Center's 100th Birthday Celebration as the Centennial kick -off event was vital to the year -long celebration; and WHEREAS, the members of the Brooklyn Center Special Events Committee have volunteered their time and talents for eleven years; and WHEREAS, their dedicated public service and civic effort for the betterment of the community merit the gratitude of the citizens of Brooklyn Center; and WHEREAS, it is highly appropriate that their service to the community should be recognized and expressed. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that the dedicated public service of the Brooklyn Center Special Events Committee members, who include Phil Cohen, Doug Darnell, Dale Greenwald, Bruce Hobbs, Dorothy Jacobson, Tony Kuefler, Sue LaCrosse, Kay Lasman, Len Lasman, Baylon Loosbrock, Sue Low, Dr. Duane Orn, Margaret Sandberg, Tom Shinnick, and Tim Willson is hereby recognized and appreciated by the City of Brooklyn Center. February 28, 2011 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member I and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: • whereupon said resolution was declared duly passed and adopted. City Council Agenda Item No. 10a COUNCIL ITEM MEMORANDUM DATE: February 28, 2011 r TO: Curt Bo ane City Manager g Y� Y g FROM: Sharon Knutson, City Clerk jWM 44 SUBJECT: Type IV 6 -Month Provisional Rental License for 6020 Emerson Avenue N Recommendation: It is recommended that the City Council consider approval of the issuance of a Type IV 6 -Month Provisional Rental License and mitigation plan for 6020 Emerson Avenue N. If the Council chooses not to issue the license, it is recommended that the motion be to direct staff to prepare proposed findings for denial of the rental license and draft said resolution for the next Council meeting. Background: This owner is applying for a new rental license. This property qualifies for a Type IV provisional rental license, based on 11 property code violations found during the initial rental license inspection. Staff from Administration, Building & Community Standards and Police Departments worked with the property owner regarding a mitigation plan, which requires Phase 1, II and III of the Crime Free Housing Program, and other items included by City ordinance for a Type IV License. A Mitigation Plan has been developed addressing the requirements of the ordinance and any issues specific to the property. Therefore, staff is recommending approval of the Type IV Rental License on condition of adherence to the Mitigation Plan. Please refer to the attached copy of the Mitigation Plan for more information. The following is a brief history of the license process actions: 06 -23 -10 Chad Tesmer applied for initial rental dwelling license 6020 Emerson Avenue N, a single - family residential property. 07 -15 -10 Initial rental inspection conducted (11 orders cited, see attached rental criteria) 08 -16 -10 Second rental inspection failed 11-3-10 Third rental inspection passed 11 -17 -10 Letter to owners notifying of qualification for Type IV 6 -Month Provisional Rental License, including additional requirements to obtain a rental license (submit mitigation plan, completion of Phases 1, II, and III of Crime Free Housing Program, etc.) 02 -10 -11 Mitigation Plan finalized If approved, after six months, a new rental license will be required. The license process will begin in approximately four months. The new license will be based on the property code violations found during the initial renewal license inspection and the number of validated police calls for services for disorderly activities and nuisances as defined in 12 -911. The terms of the mitigation plan must also be met. Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM Excerpt from Chapter 12 of City Code of Ordinances: • Section 12 -913. TYPE IV PROVISIONAL LICENSES. 1. Rental properties that meet the provisional licensing criteria as described in Section 12- 901 are eligible only for provisional licenses. 2. The City will provide by mail to each licensee a monthly report of any police and fire calls and incidents and applicable property Code violations as described in Section 12- 901. 3. Mitigation Plan. The applicant for a provisional license must submit for Council review a mitigation plan for the license period. The mitigation plan shall describe steps proposed by the applicant to reduce the number of police and fire calls and/or the property Code issues described in Section 12 -901 and 12 -911 to a level that qualifies for a Type I, II, or III license. The mitigation plan may include such steps as changes in tenant screening procedures, changes in lease terms, security measures, rules and regulations for tenant conduct, security personnel, and time frame to implement all phases of the Crime Free Housing Program. 4. Council Consideration. The application with a proposed mitigation plan will be presented to the City Council together with a recommendation by the City Manager or the Manager's designee as to the disposition thereof. After giving the applicant an opportunity to be heard and present evidence, the Council shall approve, disapprove, or approve with conditions the application and the mitigation plan. If the Council disapproves an application and mitigation plan or approves it with conditions, it shall state its reasons for so doing in writing. In evaluating a mitigation plan, the Council will consider, among other things, the facility, its management practices, the nature and seriousness of causes for police and fire incidences and/or property Code issues and the expected effectiveness of measures identified in the plan to reduce the number of police and fire incidences and/or property Code violations. In evaluating a mitigation plan submitted by an applicant already under a provisional license, the Council will also consider the effectiveness of measures identified in the applicant's previous mitigation plan and the need for different or additional measures to reduce police and fire incidences and/or property Code violations. S. Compliance with Mitigation Plan. The licensee shall comply with the mitigation plan as approved or modified by the Council. No later than the tenth day after each calendar month the licensee shall mail or deliver to the City Manager a written report describing tY g P g all steps taken in furtherance of the mitigation plan during the preceding month. Mission: Ensuring an attractive, clean, safe community that enhances the quality of fife and preserves the public trust COUNCIL ITEM MEMORANDUM Rental License Category Criteria Policy — Adopted by City Council 03 -08 -10 1. Determining License Categories. License categories are based on property code and nuisance violations noted during the initial or renewal license inspection or for a category verification inspection, along with excessive validated police service calls occurring over a year. License categories are performance based and more accurately depict the condition of the property and the City costs of service. 2. Fees. Fee amounts are determined by the costs of the city to license, inspect, monitor and work with the property to ensure category conditions are met. License fees do not include reinspection fees, late fees, charges for criminal or civil enforcement actions, or other penalties. 3. Category Conditions. The licensee or designated agent must meet the category conditions in the time period specified by the City. A licensee must meet all original conditions required by the License Category, even if a subsequent license category is achieved. 4. License Category Criteria. a. Property Code and Nuisance Violations. Property code violation rates will be based on the average number of property code violations per unit identified during the licensing inspection or category verification inspection. Property code violations for purposes of determining licensing categories shall include violations of property code and nuisances as defined in Chapter 12, 19, 7 and other applicable local ordinances. The City may, upon complaints or reasonable concerns that the establishment no longer complies with the license category criteria, perform a category verification inspection to the same standards as the license renewal inspection as indicated below. Inspections will be conducted in conjunction with established department policies. In cases where 100% of the units are not inspected, the minimum inspection standards will be established as follows: • At least 75% of units will be inspected for properties with 15 or less units. • At least 25% of units, to include a minimum of 12 units, will be inspected for properties with 16 or more units. Mission: Ensuring an attractive, clean, safe community that enhances the quality of life acrd preserves the public trust COUNCIL ITEM MEMORANDUM Property Code and Nuisance Violations Criteria P License Category Number of Units Property Code Violations per (Based on Property Inspected Unit Code Only) Type I — 3 Year 1 -2 units 0 -1 3 + = ' 0- -0 35 Type 11— 2 Year 1 -2 units Greater than 1 but not more than 4 3 ±units Greaten that �5 ;but nit more than 15 Type III —1 Year 1 -2 units Greater than 4 but not more than 8 °unuts greaterin,15 .ut.t race th3M Type IV — 6 Months 1 -2 units Greater than 8 3+ units< Greater tl 3 , . b. Police Service Calls. Police call rates will be based on the average number of valid police calls per unit per year. Police incidences for purposes of determining licensing categories shall include disorderly activities and nuisances as defined in Section 12 -911, and events categorized as Part I crimes in the Uniform Crime Reporting System including homicide, rape, 0 robbery, aggravated assault, burglary, theft, auto theft and arson. Calls will not be counted for purposes of determining licensing categories where the victim and suspect are "Family or household members" as defined in the Domestic Abuse Act, Minnesota Statutes, Section 518B.01, Subd. 2 (b) and where there is a report of "Domestic Abuse" as defined in the Domestic Abuse Act, Minnesota Statutes, Section 518B.01, Subd. 2 (a). License Number of Units Validated Calls for Disorderly Conduct Category Service & Part I Crimes (Calls Per Unit/Year) No Category 1-2 0-1 0 Impact 3 units: i ` fl' -fl25 f 5 or more units 0 -0.35 Decrease 1 1 -2 Greater than 1 but not more than 3 Category Ca#eT #hha�a 25 ., au1° in i e'thai '1, 5 or more units Greater than 0.35 but not more than 0.50 Decrease 2 1 -2 Greater than 3 ,: Categories amts;.. Greater than x, ,, x ,... . _.,,J 5 or more units Greater than 0.50 Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM Budget Issues: There are no budget issues to consider. Council Goals: Strategic: We will ensure a safe and secure community We will stabilize and improve residential neighborhoods Attachment - Mitigation Plan Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust 02/02/2011 16:01 Agents fAX) P.0021004 City of Brooklyn Center Phone: 763-569 -3300 6301 Shingle Creek Parkway TFYIY ice 711 m7 Brooklyn Center, MN 55430 -2199 Far. 763 -569 -3494 www.el MjbmoJdyncenter.vrg Rental License Mitigation Plan (Type IV License) Handwritten plans will not be accepted Please type or use frllable form on City website. Property Address: 6020 Emerson Ave North Brooklyn Center, Minnesota 55430 Owner Name: Chad Tesmer Local Agent: Owner Address. Agent Address: 13985 Oakwood Court, St.Michael. Minnesota 55376 Tis Fwm Ava Soup+ 1205, Gaeon vanoy Minne@m 55426 Owner Phone: 763- 234 -4739 Agent Phone: 952- 470 -8888 ext e Owner Email: Chadtesmer@Edherealty.com Agent Email: Eddie @renlersWarshouse.com The above referenced property qualifies for a Type N Rental License. A Mitigation Plan must be completed and reviewed by City staff before the rental license application can be considered for approval by City Council. A Mitigation Plan should indicate the steps being taken to correct identified violations and the measures that will be taken to ensure ongoing compliance with City Ordinances and applicable Codes. The Mitigation Plan provides err opportunity to review property concerns and identify possible solutions to improve the overall conditions of the Section A — Required Documents Submit the following documents with the Mitigation Plan for approval: ©1. Crime Free Housing Program Trai Certificate © 2. Copy of Lcasc including Minnesota Crime Fite Housing Lease Addendum © 3. Signed & Completed Mitigation Plan =4. Security Assessment Report (Performed by the Brooklyn Center Police Department) O 5. Submit written report by 10 of each month (after license approval). Section B — CAW Free ff oldn , Pro. ram Re rements Phase I I. Use written lease including Crime Fret: Housing Lease Addendum. 2. Conduct criminal background check for all prospective tenants. Provide documentation to City if requested 3. Pursue the eviction of tenants who violate the terns of the lease or any addendums. 4. Attend City approved eight hour Crime Free Housing course. Date Course Completed: 1M1/2010 Date Course Scheduled: Phase R >• Complete Security Assessment and implement all security improvements recommended by the F-7- Brooklyn Center Police Department. Date Completed. 0113112011 i to be completed by . 02/11/2011 Page I Type N Mitigation Plan 1 -11 02/02/2011 16:02 Agents FAX) P.0031004 Pbase III I will attend a minimum of 5D% of the ARM meetings (four). I will attend the ARM meetings scheduled for. 1 1 /09120 1 0— © I will have no repeat code violations previously documented within the past year. For propertiirs xdth four or more units: I will conduct resident training annually that includes crime prevention techniques. O I will hold regular resident meetings. ectison C — LogM Term ital ovgMeq Pl&p Future Date Last Replaced Rep lacement lacemeni Date FurnaceJAC 01/012008 Water Heater DiMIMo Kitcben Appliances 011012010 Laundry Appliances 011012006 Exterior -Paint/Siding 01101/2401D - Windows 0ero12o14 -Roof 01/012006 -Fence 06/012014 - Shed - Garago 061012014 - Driveway 10101/1998 - Sidewalks Smoke Alarms & Carbon Monoxide Alarms DWI 12010 Other. Section D — StSRs to lrqprove Management and Conditions of Prope Implementing the following best practices may assist in the management of your property. By checking the boxes below, you agree to: Check in with tenants every 30 days. Drive by property to check for violations twice a month. Evict tenants in violation of the leave and all addendum&. Provide lawn/snow service. Q Provide garbage service. Install security system � Provide maintenance service plan for appliances. Name of service company: center point Serrkco p4is 1 I am and will remain current on payment of utility fees, taxes, assessments, fines, penalties and other financial claims due to the City. Q other- If the Type N Rental License is approved by the City Council, the Licensee must comply with the approved Mitigation Plan and all applicable city codes. No later than the 10 of each calendar month, the licensee must submit to the Building and Community Standards Department a written report describing all steps taken to comply with the Mitigation Plan. Page 2 Type IV Mitigation Plan 141 02/02/2011 16:02 Agents fAX) P.0041004 i t i vatty but aII'iaiortanfion pfd shove is ttw snd acean &: I-dm"nd OW 1fI do VA oomph wjm sn appcnved 1►fitigetlanYlQ4 eufon�meatacnons arch as datlao, format comptalnt or ttoa a revtew•aiay result Ael OwmwWAge oinattae / TWO DIVA ottnerorAge�'Bt�Oacma • . . a % ftDcp*rftnwflTitic . . i t►1} staaa�as nep�o�c I T1tle D� • i Pogo 3.. •' 1�+e ry Miti�a Plse 1 -11 t r City Council Agenda Item No. 10b COUNCIL ITEM MEMORANDUM DATE: February 28, 2011 TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk j6W44ik SUBJECT: Type IV 6 -Month Provisional Rental License for 4718 Twin Lake Avenue Recommendation: It is recommended that the City Council consider approval of the issuance of a Type IV 6 -Month Provisional Rental License and mitigation plan for 4718 Twin Lake Avenue. If the Council chooses not to issue the license, it is recommended that the motion be to direct staff to prepare proposed findings for denial of the rental license and draft said resolution for the next Council meeting. Background: This owner is applying for a renewal rental license. This property qualifies for a Type IV provisional rental license based on nine property code violations found during the initial rental license inspection and one validated police incidents /nuisance calls for the past 12 months. Staff from Administration, Building & Community Standards and Police Departments worked with the property owner regarding a mitigation plan, which requires Phase I, II and III of the Crime Free Housing Program, and other items included by City ordinance for a Type IV License. A Mitigation Plan has been developed addressing the requirements of the ordinance and any issues specific to the property. Therefore, staff is recommending approval of the Type IV Rental License on condition of adherence to the Mitigation Plan. Please refer to the attached copy of the Mitigation Plan for more information. The following is a brief history of the license process actions: 09 -13 -10 Richard and Elizabeth Becht applied for renewal of the rental dwelling license for 4718 Twin Lake Avenue, a single - family residential property. 09 -17 -10 Initial rental inspection conducted (Nine orders cited, see attached rental criteria) 10 -29 -10 Second rental inspection passed 10 -29 -10 One validated police incident/nuisance calls occurred in the past 12 months. 11 -17 -10 Letter to owners notifying of qualification for Type IV 6 -Month Provisional Rental License, including additional requirements to obtain a rental license (submit mitigation plan, completion of Phases I, II, and III of Crime Free Housing Program, etc.) 01 -19 -11 Mitigation Plan finalized If approved, after six months, a new rental license will be required. The license process will begin in approximately four months. The new license will be based on the property code violations found during the initial renewal license inspection and the number of validated police Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM calls for services for disorderly activities and nuisances as defined in 12 -911. The terms of the mitigation plan must also be met. Excerpt from Chapter 12 of City Code of Ordinances: rp U tV Section 12 -913. TYPE IV PROVISIONAL LICENSES. 1. Rental properties that meet the provisional licensing criteria as described in Section 12- 901 are eligible only for provisional licenses. 2. The City will provide by mail to each licensee a monthly report of any police and fire calls and incidents and applicable property Code violations as described in Section 12- 901. 3. Mitigation Plan. The applicant for a provisional license must submit for Council review a mitigation plan for the license period. The mitigation plan shall describe steps proposed by the applicant to reduce the number of police and fire calls and/or the property Code issues described in Section 12 -901 and 12 -911 to a level that qualifies for a Type 1, II, or III license. The mitigation plan may include such steps as changes in tenant screening procedures, changes in lease terms, security measures, rules and regulations for tenant conduct, security personnel, and time frame to implement all phases of the Crime Free Housing Program. 4. Council Consideration. The application with a proposed mitigation plan will be presented to the City Council together with a recommendation by the City Manager or the Manager's designee as to the disposition thereof. After giving the applicant an opportunity to be heard and present evidence, the Council shall approve, disapprove, or approve with conditions the application and the mitigation plan. If the Council an application and miti ation lan or a roves it with conditions disapproves pp , it shall PP g P state its reasons for so doing in writing. In evaluating a mitigation plan, the Council will consider, among other things, the facility, its management practices, the nature and seriousness of causes for police and fire incidences and/or property Code issues and the expected effectiveness of measures identified in the plan to reduce the number of police and fire incidences and/or property Code violations. In evaluating a mitigation plan submitted by an applicant already under a provisional license, the Council will also consider the effectiveness of measures identified in the applicant's previous mitigation plan and the need for different or additional measures to reduce police and fire incidences and/or property Code violations. 5. Compliance with Mitigation Plan. The licensee shall comply with the mitigation plan as approved or modified by the Council. No later than the tenth day after each calendar month, the licensee shall mail or deliver to the City Manager a written report describing all steps taken in furtherance of the mitigation plan during the preceding month. Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM Rental License Category Criteria Policy — Adopted by City Council 03 -08 -10 1. Determining License Categories. License categories are based on property code and nuisance violations noted during the initial or renewal license inspection or for a category verification inspection, along with excessive validated police service calls occurring over a year. License categories are performance based and more accurately depict the condition of the property and the City costs of service. 2. Fees. Fee amounts are determined by the costs of the city to license, inspect, monitor and work with the property to ensure category conditions are met. License fees do not include reinspection fees, late fees, charges for criminal or civil enforcement actions, or other penalties. 3. Category Conditions. The licensee or designated agent must meet the category conditions in the time period specified by the City. A licensee must meet all original conditions required by the License Category, even if a subsequent license category is achieved. 4. License Category Criteria. a. Property Code and Nuisance Violations. P Property code violation rates will be based on the average number of property code violations per unit identified during the licensing inspection or category verification inspection. Property code violations for purposes of determining licensing categories shall include violations of property code and nuisances as defined in Chapter 12, 19, 7 and other applicable local ordinances. The City may, upon complaints or reasonable concerns that the establishment no longer complies with the license category criteria, perform a category verification inspection to the same standards as the license renewal inspection as indicated below. Inspections will be conducted in conjunction with established department policies. In cases where 100% of the units are not inspected, the minimum inspection standards will be established as follows: • At least 75% of units will be inspected for properties with 15 or less units. • At least 25% of units, to include a minimum of 12 units, will be inspected for properties with 16 or more units. Mission: Ensuring an attractive, clean, safe community that enhances the quality of life andpreserves thepublic trust COUNCIL ITEM MEMORANDUM Property Code and Nuisance Violations Criteria License Category Number of Units Property Code Violations per (Based on Property Inspected Unit Code Only) Type I — 3 Year 1 -2 units 0 -1 units Y-. 0 Or � �k ' 1 �' ,�,. Type II — 2 Year 1 -2 units Greater than 1 but not more than 4 �zni#s Greater than 0 75, riot more than 1.5. Type III — 1 Year 1 - 2 units Greater than 4 but not more than 8 ±iits Greater I I but riot mcxe than -' Type IV — 6 Months 1 -2 units Greater than 8 -� units ' � Greatex than 3 � b. Police Service Calls. Police call rates will be based on the average number of valid police calls per unit per year. Police incidences for purposes of determining licensing categories shall include disorderly activities and nuisances as defined in Section 12 -911, and events categorized as Part I crimes in the Uniform Crime Reporting System including homicide, rape, robbery, aggravated assault, burglary, theft, auto theft and arson. Calls will not be counted for purposes of determining licensing categories where the victim and suspect are "Family or household members" as defined in the Domestic Abuse Act, Minnesota Statutes, Section 5188.01, Subd. 2 (b) and where there is a report of "Domestic Abuse" as defined in the Domestic Abuse Act, Minnesota Statutes, Section 5188.01, Subd. 2 (a). License Number of Units Validated Calls for Disorderly Conduct Category Service & Part I Crimes (Calls Per Unit/Year) No Category 1 -2 0 -1 Impact 3= its 0 -0.25 � � Y 5 or more units 0 -0.35 Decrease 1 1 -2 Greater than 1 but not more than 3 Category units III 5 or more units Greater than 0.35 but not more than 0.50 Decrease 2 1 -2 Greater than 3 Categories unat Y ,Great. than . 5 or more units Greater than 0.50 Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM Budget Issues: There are no budget issues to consider. Council Goals: Strategic: We will ensure a safe and secure community We will stabilize and improve residential neighborhoods Attachment - Mitigation Plan Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust City of Brooklyn Center Phone: 763 -569 -3300 6301 Shingle Creek Parkway M;lVoice 711 Brooklyn Center, MN 55430 -2199 Fax- 763 -569 -3494 www.cityolbrooklyncenter.org Csr r- Rental License Mitigation Plan (Type IV License) Handwritten plans will not be accepted Please type or use frllable form on City website. Pr0 Ad 4718 T A ` Ave -N L)w= Name. Locaf A getR ,# zm, in! ►tR.ri3-I .Q vfm " Bec C+ veer ddress Aid " "r a ad s -j Cfystal 'h M6K DiN�Ci1fI1G #- G�lt�`I263 W1thORle YY t Y k k T+RHIi�sv �ti F Y t.... The above referenced property qualifies for a Type IV Rental License. A Mitigation Plan must be completed and reviewed by City staff before the rental license application can be considered for approval by City Council. A Mitigation Plan should indicate the steps being taken to correct identified violations and the measures that will be taken to ensure ongoing compliance with City Ordinances and applicable Codes. The Mitigation Plan provides an opportunity to review property concerns and identi ossible solutions to , rove the overall conditions of the Property. Submit the following documents with the Mitigation Plan for approval: 7 1. Crime Free Housing Program Training Certificate 2. Copy of Lease including Minnesota Crime Free Housing Lease Addendum 0 3. Signed & Completed Mitigation Plan 4. Security Assessment Report (Performed by the Brooklyn Center Police Department) =5. Submit written report by I& of each month (after license approval). Phase I 1. Use written lease including Crime Free Housing Lease Addendum. 2. Conduct criminal background check for all prospective tenants. Provide documentation to City if requested 3. Pursue the eviction of tenants who violate the terms of the lease or any addendums. 4. Attend City approved eight hour Crime Free Housing course. Date Course Completed: Date Course Scheduled: 01/19/2011 Phase H Complete Security Assessment and implement all security improvements recommended by the Brooklyn Center Police Department. 05/15/2011 Date Com leted: 01111/2011 improvements to be completed Page 1 Type IV Mitigation Plan 9 -10 Phase III I will attend a minimum of 50% of the ARM meetings (four). I will attend the ARM meetings scheduled for: 0111 3/2 01 1 & 03/10/2011 0 511 212 0 1 1 & I will have no repeat code violations previously documented within the past year. For properties with four or more units: I will conduct resident training annually that includes crime prevention techniques. I will hold regular resident meetings. Future Date Last Replaced Replacement Date Fumace /AC Water Heater 07/27/1997 0727/1012 Kitchen Appliances 01/012000 Laundry lances 01/01/2005 Exterior - Paint/Siding 01/0112009 - Windows 09/21/1999 -Roof -Fence -Shed -Garage 06/1912007 - Driveway 01/012000 - Sidewalks Smoke Alarms & Carbon Monoxide Alarms Other: ,r W _ Implementing the following best practices may assist in the management of your property. By checking the boxes below, you agree to: Check in with tenants every 30 days. Drive by property to check for violations twice a month. ✓0 Evict tenants in violation of the lease and all addendums. ✓0 Provide lawn/snow service. Provide garbage service. Install security system. ✓� Provide maintenance service plan for appliances. Name of service company: rentPmnint Fne ;y Other: Page 2 Type IV Mitigation Plan 9 -10 If the Type IV Rental License is approved by the City Council, the Licensee must comply with the approved Mitigation Plan and all applicable city codes. No later than the 10' of each calendar month, the licensee must submit to the Building and Community Standards Department a written report describing all steps taken to comply with the Mitigation Plan. I verify that all information provided above is true and accurate. I understand that if I do not comply with an approved Mitigation Plan, enforcement actions such as citation, formal complaint or license review may result CW & A.. vw ne r 1-11-it - Owner br Agent Signature / Title Date Additional Owner or Agent Signature / Title Date (If applicable) 10� 14-7/ r Police Department / Title Date By & Community Standards Department / Title Date Page 3 Type N Mitigation Plan 9 -10 I Elizabeth A Becht P.O. Box 22277 Rbnsdl, MN 55422 612- 270 -4263 1 -28 -2011 RE: Addendum to Mitigation Plan / Property 4718 Twin Lake Ave N Brooklyn Center, MN 55429 / Utilities The utilities that the rental tenant is responsible for at the property listed above were delinquent in the past. The tenant has advised me (Elizabeth A Becht) that she will be on time with the future payments and had fallen behind due to medical bills. Sincerely, Elizabeth A Becht I AGENDA CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY WORK SESSION February 28, 2011 Immediately Following Regular City Council and EDA Meetings Which Start at 7:00 P.M. Council Chambers City Hall A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. ACTIVE DISCUSSION ITEMS 1. Progress Reports on Achievement of Strategic Goals 2. Northport Park Recommendations by Citizen — Mayor Willson 3. Hwy 252 Update 4. Presentation of the Tax Increment Report Relating to the Creation of Tax Increment District No. 5 (Shingle Creek Crossings) PENDING LIST FOR FUTURE WORK SESSIONS Later /Ongoing 1. Progress Reports on Achievement of Strategic Goals 2. School District Discussions/BC Strategic Plan Report 3. All City Open House 4. Sister City Update 5. Neighborhood Designations 6. Department Year End Reports 7. Active Living Program 8. Graduated Sanitary Utility Rate Study 9. Garbage Hauler Organized Collection Update 10. Joint Meeting with Commissions April 6th Follow -up 11. Shingle Creek Crossing 12. Financial Commission Report 13. Youth Participation Request Work Session Agenda Item No. 1 MEMORANDUM - COUNCIL WORK SESSION • DATE: February 24, 2011 TO: City Council FROM: Curt Boganey, City Manager SUBJECT: Review of 2010 Success Targets Annual Results Recommendation: It is recommended that the City Council consider providing direction to staff regarding acceptance of the 2010 Success Targets Annual Results Report. Background: This item was rescheduled from the last worksession meeting. I have added a condensed version of the success target results. The condensed version shows that 28 targets were met, 19 targets were not met and 33 targets are yet to be determined. A year ago the City Council reviewed Strategic Goals, Ongoing Goals, Desired Outcomes and for the first time established success targets. The success targets are intended to be a way of focusing City efforts expecting that the pursuit of these targets will lead to the Desired Outcomes and Goals of the City Council. As stated last year, the targets established are deliberately aggressive and difficult to achieve. They are intended to encourage creative solutions and clearly focus effort and resources. You will note that while some targets have been met or exceeded there is much work to be done to achieve most of the targets. In many cases we will need to use 2011 as a year to gather base line data before we can adequately measure progress. In many cases the targets are long -term and success will not be realized for several years. I encourage the staff and Council not to be discouraged that many targets have yet to be met, because it is not the achievement but the pursuit of the target that will make all of the difference. I am pleased to share this first annual report and look forward to receiving your comments, suggestions and feedback. Policy Issues: Does the report provide the data/information needed by the Council to assess target accomplishments? How can the report be improved for the benefit of the Council? Council Values Vision and Planning- We believe that the very essence of leadership is to be visionary is and to plan for the future. 1lission: Ensurit�q an attractive, clean, safe eoniniunity that enhances the quality c f life and preserves thepublic trust Annual Results 2010 Condensed This report documents results toward the achievement of Strategic and Ongoing Desired Outcome Measuring Success Success Targets established by the Brooklyn Center City Council OUR MISSION To ensure a clean, safe, attractive community that enhances the quality of life and preserves the public trust OUR VALUES Excellence and Quality, Ethics and Integrity, Vision and Planning, Fiscal Responsibility, Cooperation and Teamwork, Open and Honest Communication, Professionalism C7 i • STRATEGIC GOALS- Desired Outcomes - Success Targets 1. We will have a safe and secure community a. The threat and fear of real or perceived crime among citizens and others will be greatly reduced i. Reduce Violent Crime by at least 10% annually Target Target Met:� N M U X it. Reduce Property Crime by at least 10 % annually • • • X 1 7 - b. Citizens will feel and be safe in their homes areas of concern and throughout the City i. City Survey results will reflect that all residents feel safe in their homes. X ii. City Survey results will reflect that all residents feel safe throughout the City (no places deemed unsafe) Target Met Target • • • 3 their neighborhood. a. Privately funded redevelopment will expand and improve L At least 50% of the privately owned residential vacant properties will be redeveloped within the next five years (2015) adding to the adjusted for inflation taxable value of the City. Redevelopment of these properties will commence within two years ( 2012) redevelopment within the next five years, adding to the adjusted for inflation taxable value of the City. Redevelopment of these properties will commence within two years (2012) • i • iii. City survey results will reflect that all residents feel safe walking alone at night in 2. Aggressively proceed with City redevelopment ii. At least 80% of privately owned vacant commercial properties will complete 0 e • e X iii. At least 50% of blighted /economically obsolete commercial properties will be redeveloped within the next five years adding to the adjusted for inflation City Tax Base. Redevelopment of these properties will commence within two years (2012) Target Me Target • e° e X b. "Opportunity Site" redevelopment will commence i. 30% of the privately owned properties north and east of John Martin Drive will commence redevelopment within five years (2015) ]LI MOM Q UI falwas 007, X ii. All of the privately owned properties north and east of John Martin Drive will complete redevelopment within ten years, adding to the adjusted for inflation taxable value of the City (2020) e e e X 5 iii. At least 50% of EDA owned and privately owned properties located south and west of John Martin Drive will commence and complete redevelopment within five years (2015) adding to the adjusted for inflation taxable value of the City Martin Drive will commence and complete redevelopment within Ten (10) years (2020) adding to the adjusted for inflation taxable value of the City. L At least 50% of the EDA properties owned (Non Opportunity Site) commercial properties (approximate 12 acres) will commence redevelopment within two years. (2012) 0 0 0 iv. All EDA owned and privately owned properties located south and west of John c. EDA owned properties redevelopment will proceed expeditiously ii. All EDA owned commercial property (approximate 33 acres) will have completed redevelopment within ten years (2020), adding to the adjusted for inflation taxable value of the City X 3. Stabilize and improve residential neighborhoods a. Citizens will benefit from a diverse stock of housing types and styles i. The number of home remodels will increase Target: Met Target • • • -7 X ii. The value added home improvements will exceed $7,500 average per permit in each neighborhood (i.e. garage additions, bathrooms, bedrooms, 2 nd stories, energy efficiency improvement) annually mlm� . .. 0 fire X iii. Housing and accommodations for seniors will be available foraging residents consistent with the demand for housing by this demographic group Target N Met, 7 seeking modern housing and move up housing choices codes and regulations which will be adequate to assure a safe well maintained and attractive community i. Of all residential properties inspected, 90% will be in full compliance with property maintenance codes (Y6 violation types) city housing and neighborhood codes i. At least 95% of single family residential properties will be owner- occupied • i • iv. There will be new housing construction to accommodate the needs or those b. Owners and occupants of housing in residential neighborhoods will comply with City H. All residents surveyed are aware of, understand and support the enforcement of c. Owner occupied housing will increase as a percentage of total housing X ii. At least 95% of all new housing will be built for owner occupancy • • • X d. Problems associated with foreclosed residential properties will be dramatically reduced or eliminated i. 90% of qualified vacant properties will be registered and in compliance with the vacant building ordinance X ii. All vacant properties will be in compliance with property maintenance codes X e. Residential property values will improve and citizens will be proud of their neighborhood 9 i. Within three years(2013) the average residential sales price will stop declining greater than the rate of increase in comparable communities a. All demographic groups will be represented and encouraged to participate in civic, governmental, community organizations and activities 10 0 • 0 ii. Within five years (2015) residential sales prices will increase at a rate equal to or iii. All residential properties will be well maintained and landscaped iv. All residents surveyed will say they are proud of their neighborhood v. All residents surveyed will say they are proud of Brooklyn Center 4. Positively address the community demographic makeup and increasing cultural diversity i. Members of all communities will have equal access and representation in civic, governmental, community organizations and activities Target Met Target N o U n X b. Youth will be adequately served by recreation and educational programs and activities i. All youth desiring to will be productively engaged in recreational activities or educational programs Target, met Target N �Met • • X ii. Participation in community programs and activities will reflect the demographic makeup of the community X c. The social, health and housing needs of the aging and moderate income population will be improved 11 i. Service gaps in the social, health and housing needs of the aging and moderate income community members will be reduced and eliminated over time a. The City public buildings and other major equipment and physical assets of the City will be maintained and improved i. Meet or exceed the minimum maintenance condition standard for City facilities attractive buildings) 0 0 0 5. Continue to maintain and improve City infrastructure H. Customers provide positive feedback pertaining to City facilities( clean, iii. Maintain public access and availability for City park facilities and infrastructure iv. Reduce graffiti occurrences and complaints. • U nde t erm in ed X b. Neighborhood streets and utilities will be maintained and improved i. Citizen rate reconstruction projects as meeting or exceeding expectations via survey sent to project area residents X ii. Using a pavement index rating system, meet or exceed the established acceptable roadway rating standard • • e X iii. Reduce pothole and roadway complaints . ��M • - • X iv. Reduce sewer blockage and watermain breakag %omplaints Elam X X 13 v. Complete the citywide street and utility reconstruction program within 10 years (2020) provided by the City i. Minimize any increase to future traffic delays and congestion 14 0 c. The traveling public will benefit from multi -modal transportation options fostered and ii. Minimize the amount of regional traffic flow on local streets iii. Increase alternative modes of transportation used i i • • •. • X d. Citizens will benefit from the expansion and improvement of needed technology infrastructure as viable options become available L Reduce City government expenses through the application of technology . • • - - • ii. Improve City Services to the citizens through the application of technology iii. Preserve environmental resources and conservation of energy through the application of technology EMS X 6. Effectively respond to the increased public awareness and interest in environmental sustainability and "green community" issues a. Public appreciation of the environment will be enhanced and expanded 15 L Within three years (2013) all residents surveyed will understand the value of recycling and energy conservation and at least 70% will have changed their behavior to conserve environmental resources significantly significantly sustainable community L The City will purchase recycled materials whenever costs are reasonable and quality is acceptable • i • ii. Within five years (2015) energy consumption in the City will be reduced iii. Within five years (2015)City government energy consumption will be reduced b. The purchasing power of the City will support the goals of an environmentally ii. The City will increase the share of purchased recycled materials by 10% annually for the next five years • • • I X M. The City will eliminate the use of products.. chemicals or compounds that pose a risk to human health or to the environment whenever a viable cost effective alternative is available X iv. The City will purchase environmentally friendly equipment and vehicles whenever performance requirements and cost are comparable. • 1r1reM • Neil X O �1 !!!I ONGOING GOALS- Desired Outcomes - Success Targets continue to provid streamlined cost effective quality 1. We will c , q Y services with limited resources p a. The quality of service delivered by the city will consistently meet or exceed customer expectations 17 i. Customer surveys for City services delivered will reflect customer satisfaction from not less than 90% of respondents i. Implementation and execution of continuous improvement programs throughout all departments will reflect upper quartile performance for each high priority benchmark measure a. City funds will be protected against loss • i • b. Service delivery will improve on an ongoing basis ii. Qualification for Malcolm Baldridge or comparable quality improvement award iii. Cost effectiveness performance benchmark comparisons from each department 2. Ensure the City's financial stability of the City I L All City funds will be FDIC insured up to the legal maximum per account X ii. Any funds in excess of the FDIC maximum in any one account will be properly collateralized X in. The City's investment portfolio will be diversified so as to minimize potential losses on individual securities • 1 ra e M e X b. City administration will provide meaningful short.. intermediate and long term fiscal planning i. The operating budget document will provide annual and multi -year operating plans Target Met; Target • e • X 19 H. Staff will annually provide life -cycle capital plans for all long - lived assets the effects of significant economic downturns i. Fund reserves as indicated by year end cash balances will be maintained at levels allowing for short term funding of operations in emergency situations volatile resources i. The City will keep current and adhere to the Comprehensive Plan X Data /Information /Explanation: Reporting Agency- Business and Development The 2030 Comvrehensive Plan adopted by the QV Council on March 22,210 is current and used by the gfty as a 20 0 • c. The City will take appropriate actions to buffer essential government services against ii. Essential services as determined by the City Council will be functea► from non- d. The City will position itself for economic growth I TargetMet' Tar • • e development guide. source: ii. Capital Improvement Plans will reflect the intentions of the Comprehensive Plan Target Ta et et • e • i X 3. We will move toward maintaining or lowering the level of property taxes a. Except in extraordinary circumstances the property tax levy will not increase faster than the inflation rate i. Property tax levy increases should not exceed the rate of inflation MMM MMM H. If the property tax levy increase exceeds the rate of inflation a clear, extraordinary circumstance justifying the increase will be identified X b. The City will expand the proportion of industrial and commercial tax base to relieve the residential property tax burden 21 i. The City commercial /industrial tax base increases at a rate faster than the residential tax base a. State and Federal legislators will be informed regarding the City needs that may be affected by legislation i. Annually the City Council and staff will assess legislative needs and communicate directly with appropriate Local, State and Federal legislators i. Legislative officials will address the City Council annually regarding their efforts on behalf of our shared constituents 22 0 1�1 4. We will ensure the city's influence at the legislature b. We will maintain positive relationships with State and Federal legislators I X ii. Legislators will sponsor and support legislation on behalf of the City X c. City will receive direct support for City needs from State, County and Federal legislators 5. Improve the City's image with citizens and others a. Citizens and others throughout the State will recognize Brooklyn Center as a safe, quality, attractive community in which to live, work and play i. The rate o fproperty value increase in each property classification will equal or exceed the average rate of increase in Hennepin County and in the State X OMN ii. Citizen survey results will reflect the perception that Brooklyn Center is a safe, quality, attractive place to live, work and play - 7 - X 23 iii. Positive press regarding the City Of Brooklyn Center will increase managed a. The City drinking water will meet or exceed safe drinking water standards of the State of Minnesota i. City will meet or exceed all safe water standards contaminants manner i. The City will implement and maintain all priority elements of the Brooklyn Center Local Water Management Plan by 2012 24 0 • 6. We will ensure the City drinking water is high quality and that the storm water is property ii. The water supply will be protected against emerging and potential water b. Storm water runoff will be managed in an efficient and environmentally sensitive 0 X X 28 19 33 2/24/201111:29 AM 25 Annual Results 2010 This report documents results toward the achievement of Strategic and Ongoing Desired Outcome Measuring Success Success Targets established by the Brooklyn Center City Council 0 0 0 OUR MISSION To ensure a clean, safe, attractive community that enhances the quality of life and preserves the public trust OUR VALUES Excellence and Quality, Ethics and Integrity, Vision and Planning, Fiscal Responsibility, Cooperation and Teamwork, Open and Honest Communication, Professionalism z STRATEGIC GOALS- Desired Outcomes- Success Targets 1. We will have a safe and secure community a. The threat and fear of real or perceived crime among citizens and others will be greatly reduced i. Reduce Violent Crime by at least 10% annually X Data /Information /Explanation: Reporting Agency: Police Violent Crime declined by 19.25% in 2010 nearly double the target set. In 2010, Brooklyn Center total violent crimes were 130 compared to 161 in 2009. Since 2008, total violent crimes have declined 33% when there were 195 violent crimes committed. Violent crimes are defined as Homicide, Rape, Robbery, and Aggravated Assault. Source: Crime analyst report dated 12.31.10 ii. Reduce Property Crime by at least 10 % annually X Data /Information /Explanation: Reporting Agency: Police Property crime declined by 20.33 % in 2010 double the target set. In 2010, Brooklyn Center property crimes were 1352 compared to 1697 in 2009. Since 2008, total property crimes have declined 33.95% when there were 2047 property crimes committed. Property crimes are defined as Burglary, Larceny, Auto Theft, and Arson. Source: Crime Analyst report 12.31.2010 0 0 0 b. Citizens will feel and be safe in their homes areas of concern and throughout the City L City Survey results will reflect that all residents feel safe in their homes. 7 X Data /Information /Explanation: Reporting Agency - Police A citizen survey was not conducted in 2010 In 2011, we will conduct an unscientific poll throughout the year in anticipation of a statistically valid survey to be conducted in 2012. The four scheduled neighborhood meetings in 2011 will be a start for the poll with other public gatherings to be considered throughout the year. Source: N/A ii. City Survey results will reflect that all residents feel safe throughout the City (no places deemed unsafe) _T_ X Data /Information /Explanation: Reporting Agency - Police A citizen survey was not conducted in 2010 In 2011, we will conduct an unscientific poll throughout the year in anticipation of a statistically valid survey to be conducted in 2012. The four scheduled neighborhood meetings in 2011 rin s to be considered throughout the ear. e a start for the poll with other public gatherings Y will b g P p g g Source: N/A / 4 iii. City survey results will reflect that all residents feel safe walking alone at night in their neighborhood. M Data /Information /Explanation: Reporting Agency - Police A citizen survey was not conducted in 2010. In 2011, we will conduct an unscientific poll throughout the year in anticipation of a scientific survey to be conducted in 2012. The four scheduled neighborhood meetings in 2011 will be a start for the poll with other public gatherings to be considered throughout the year. Source: N/A 2. Aggressively proceed with City redevelopment a. Privately funded redevelopment will expand and improve i. At least 509 of the privately owned residential vacant properties will be redeveloped within the next five years (2015) adding to the adjusted for inflation taxable value of the City. Redevelopment of these properties will commence within two years ( 2012) X Data /Information /Explanation: Reporting Agency- Business and Development None of the identified vacant residential properties have been developed. This goal was established with approximately 8.5 acres of vacant residential land, 7 acres of which is contained in the second phase of the East Brook Estates, a single family residential subdivision which had received preliminary plat approval in 2006. In 2010, a 2.2 acre parcel, located between the Evergreen Estates Townhome and the River Glen Is 0 0 I • • Apartments was added to the vacant properties list. City Staff continues to have discussions on the potential development of these properties. Development/ redevelopment has not been considered feasible until the residential development market improves. Source: ii. At least 80% of privately owned vacant commercial properties will complete redevelopment within the next five years, adding to the adjusted for inflation taxable value of the City. Redevelopment of these properties will commence within two years (2012) X Data /Information /Explanation: Reporting Agency- Business and Development Approximately 67% of the identified vacant commercial parcels have been approved for development. i The 5 major vacant commercial properties identified with this goal comprise approximately 36 acres in area and include the q following: the former NW Racquet Club site (8 acres), the former Howe Fertilizer Site (5 acres), the former Jerry Food Site (4 acres), the 2nd phase of the Adult Education Site (3 acres), and the 3rd phase of the Luther Automotive Site (16 acres). The City Council has approved development plans for 3 of the 5 parcels or approximately 67 % of the vacant commercial properties. City staff has had discussions on the potential development of the NW Racquet Club site and believes that the redevelopment of the Jerry's Food site will follow the development plans for the Brookdale Mall site. Source: 6 iii. At least 50% of blighted /economically obsolete commercial properties will be redeveloped within the next five years adding to the adjusted for inflation City Tax Base. Redevelopment of these properties will commence within two years (2012) X Data /Information /Explanation: Reporting Agency- Business and Development To track the results of this success target we will inventory commercial prope to e stablish a base line of blighted/economically obsolete properties. This goal did not identify specific properties at the time it was set and will involve further assessment of vacant commercial properties to determine whether the vacant status is a factor of current market conditions or if they are blighted /economically obsolete properties. Examples of commercial properties that are being considered for redevelopment include the former Hollywood Video Store (63rd Ave. & Brooklyn Blvd.) and the portion of the mall (123,000 sq.ft.) north of Sears. An example of repositioning commercial properties includes the use of approximately 26,000 sq.ft. of the Office Max Center for Brown College. An example of the removal of these commercial properties is the planned demolition of approximately 750,000 sq.ft. of the Brookdale Mall and replacement with a Town Centre to be known as Shin le Creek Crossing. Source: b. "Opportunity Site" redevelopment will commence L 30% of the privately owned properties north and east of John Martin Drive will commence redevelopment within five years (2015) P Data /Information /Explanation: Reporting Agency- Business and Development None of the identified p roperties have commenced redeveloped 7 0 0 0 I i ! 0 • 7 s' erties included in this goal include the Target, Inland Commercial Center, Office Max Center, Best Buy, former te and Davanni's restaurant. The properties include approximately 38 acres. The redevelopment of the northern rn portions of the Opportunity Site will be highly dependent on the redevelopment of the Brookdale Mall area and the potential repositioning of the major commercial users currently located in this area. Source: H. All of the privately owned properties north and east of John Martin Drive will complete redevelopment within ten years, adding to the adjusted for inflation taxable value of the City (2020) Target'Met' Target N ot •- s X Data /Information /Explanation: Reporting Agency- Business and Development None of the identified properties have commenced redeveloped. The redevelopment of the northern and eastern portions of the Opportunity Site will be highly dependent on the redevelopment of the Brookdale Mall area and the potential repositioning of the major commercial users currently located in this area. To date discussions have primarily focused on the reuse of the existing tenant spaces. Source: iii. At least 50% of EDA owned and privately owned properties located south and west of John Martin Drive will commence and complete redevelopment within five years (2015) adding to the adjusted for inflation taxable value of the City • • X Data /Information /Explanation: Reporting Agency- Business and Development None of the identified grogerties have commenced redevglo ed. 8 The 47 acres of land identified in this goal include the former Brookdale Ford site, the Centro properties/ Circuit City strip center and out parcels and the Goldmark Office Building/ MN School of Business which comprise approximately 40 acres. The 5 lots along John Martin Drive contain the remaining 7 acres. Redevelopment of this portion of the Opportunity Site will be influenced by the proposed Shingle Creek Crossing redevelopment of the Brookdale Mall properties and the EDA's positioning of the 8.6 acre Brookdale Ford property which contains all of the street frontage on Bass Lake Road. Source: iv. All EDA owned and privately owned properties located south and west of John Martin Drive will commence and complete redevelopment within Ten (10) years (2020) adding to the adjusted for inflation taxable value of the City. Data /Information /Explanation: Reporting Agency- Business and Development None of the identified properties have commenced redeveloped The EDA property referenced in this goal is the 8.6 acre, former Brookdale Ford site. The discussions have included potential joint planning of this property with the adjoining 23 acre Circuit City site and opportunities to include the 8 acre Goldmark Office Building site into an overall plan for a 40 acre Planned Unit Development. Source: c. EDA owned properties redevelopment will proceed expeditiously 0 0 0 0 i. At least 50% of the EDA properties owned (Non Opportunity Site) commercial properties (approximate 12 acres) will commence redevelopment within two years. (2012) • s • X Data /Information /Explanation: Reporting Agency- Business and Development The 8.6 acres currently being developed for the FBI regional office is approximately 72% of the success target. The EDA owns approximately 16 acres that are located outside of the Opportunity Site. These properties include five acres formerly occupied by the Olive Garden and balance of the Cracker Barrel site, the 8 acres known as the 57th & Logan site, 1.5 acres for the Phase II Embassy Suites Site, and the 1.06 acres at the entry to the Brookdale properties, the former Boulevard Restaurant. The completion of the MPCA's environmental cleanup will enable the City to proceed with remarketing of this property. The goal of developing 12 acres of the total 24 acres can be achieved with the redevelopment of the balance of the FBI site and /or the commercial development of a portion of the 57th & Logan site. Source: H. All EDA owned commercial property (approximate 33 acres) will have completed redevelopment within ten years (2020), adding to the adjusted for inflation taxable value of the City X Data /Information /Explanation: Reporting Agency- Business and Development The 8.6 acres currently being developed for the FBI regional office is approximately 26 percent of the 33 acres owned by the EDA when this goal was established. The remaining 24 acres are high profile and well positioned to be part of the redevelopment of the city that will occur prior to 2020. Source: 10 3. Stabilize and improve residential neighborhoods a. Citizens will benefit from a diverse stock of housing types and styles L The number of home remodels will increase P Data /Information /Explanation: Reporting Agency- Buildings and Community Standards The number of home remodels decreased slightly, 5.86% in 2010 In 2010, 273 permits were issued with a value of $1,569,841. In 2009, 290 permits were issued with a value of $1,858,851. The increase in the number of remodels in 2009 and 2010 was partly due to the implementation of the vacant building program and the greater number of substandard properties. Definition: A remodel permit includes basement finishes or changes to the current property without expansion of the property. Source: LOGIS PIMS database ii. The value added home improvements will exceed $7,500 average per permit in each neighborhood (i.e. garage additions, bathrooms, bedrooms, 2 " d stories, energy efficiency improvement) annually X Data /Information /Explanation: Reporting Agency- Buildings and Community Standards Value added permits decreased slightly in 2010 to $7,450 compared to $7,537 in 2009 Although more permits were issued in 2010, the overall value was lower affecting the average permit value. In 2010, 334 permits were issued with a value of $2,488,332. In 2009, 321 permits were issued with a value of $2,419,565. 11 i s 0 0 N ot •' -• Definition: Permits analyzed included single family remodels or additions that are not commercial, multifamily or new homes. Source: LOGIS PIMS database iii. Housing and accommodations for seniors will be available foraging residents consistent with the demand for housing by this demographic group • • e X Data /Information /Explanation: Reporting Agency- Buildings and Community Standards To track this success target in 2011 we must establish what the market demand is for senior housing in Brooklyn Center. The city works with several agencies such as H.O.M.E. Program, CEAP and Northwest Family Services to address senior needs for home maintenance. Available senior living housing includes Crossing at Brookwood, Earl Brown Terrace, and Maranatha Place. Source: Senior Housing Search.com and Internal Records iv. There will be new housing construction to accommodate the needs of those seeking modern housing and move up housing choices X Data /Information /Explanation: Reporting Agency - Buildings and Community Standards Construction on one house began in 2010 with a value of approximately $475,000 and 3,500 square feet. It rep a house that was 1,040 square-feet. Source: Internal records 12 b. Owners and occupants of housing in residential neighborhoods will comply with City codes and regulations which will be adequate to assure a safe well maintained and attractive community i. Of all residential properties inspected, 90% will be in full compliance with property maintenance codes (% violation types) X Data /Information /Explanation: Reporting Agency - Buildings and Community Standards 78 .8% of all properties in the city had zero violations as noted during the i nitial city -wide sweeps. Of those properties having a violation, 96.6% were brought into compliance. In certain cases, weather deferrals were appropriate or enforcement actions were required. Source: LOGIS PIMS inspection database ii. All residents surveyed are aware of, understand and support the enforcement of city housing and neighborhood codes X Data /Information /Explanation: Reporting Agency - Buildings and Community Standards A ci tizen survey was not conducted in 2010 to determine the level of awareness o support for housing an neighborhood codes. In 2011, we will conduct a poll throughout the year in anticipation of a statistically valid survey to be conducted in 2012. Source: Int ernal records c. Owner occupied housing will increase as a percentage of total housing 13 0 0 0 i. At least 95% of single family residential properties will be owner - occupied Un TargetMet Target Not e;t • • X Data /Information /Explanation Reporting Agency- Assessing and Licensing As of December, 31, 2010, 92.83% of single family homes were considered owner - occupied comyared to 92.79% in 2009 Of 8,183 properties defined as single family homes, end -of -year data indicated 587 active /pending rental licenses in 2010 and 590 active /pending rental licenses in 2009, a decrease of 0.04 %. Definition: A single family property is defined as single family detached, duplex, townhome or condominium. Note: In 2010, a rental license ordinance amendment requires all non - owner- occupied properties to be licensed including relative homesteads. Source: Assessing and Business License data ii. At least 95% of all new housing will be built for owner occupancy et undeterriiliie X Data /Information /Explanation Reporting Agency - Buildings and Community Standards One new house was built in 2010 for owner occupants. Source: Internal records d. Problems associated with foreclosed residential properties will be dramatically reduced or eliminated 14 i. 90% of qualified vacant properties will be registered and in compliance with the vacant building ordinance X Data /Information /Explanation: Reporting Agency - Buildings and Community Standards 76.21% of qualified vacant properties were registered in 2010. 229 properties were issu reoccupancy pe rmits in 2010 and were in compliance with city codes. 848 properties were identified as vacant throughout the year of 2010 compared to 913 in 2009. 597 of these properties were qualified to be registered. 455 properties were registered, with 301 newly registered properties in 2010 compared to 420 in 2009. An increase in mortgage foreclosures and fewer sales increased the number of vacant properties. Definition: Qualified properties do not include HUD exempt, snowbird, vacant for less than 30 days, and rare special circumstances. Source: LOGIS inspection database ii. All vacant properties will be in compliance with property maintenance codes X Data /Information /Explanation: Reporting Agency - Buildings and Community Standards Not a ll vacant properties were in compliance with cj+y codes in 2010 229 vacant properties were brought into code compliance and issued re- occupapM permits in 2010 versus 224 in 2009. In 2010, no properties qualified for a reduced fee vacant building permit based on lack of exterior property code violations. The city conducted 261 abatements for abatable violations such as junk, unsecure, graffiti, junk vehicles, and long ass compared to 214 abatements in 2009. For junk/ securing and debris, in 62 other cases in 2010 corrections was 15 • 0 0 I II made by a representative of the property versus 22 in 2009. Note: All registered vacant properties are required to pass an inspection and obtain a re- occupancy permit with all maintenance items corrected prior to re- occupancy. Source: LOGIS inspection database e. Residential property values will improve and citizens will be proud of their neighborhood i. Within three years(2O13) the average residential sales price will stop declining X Data /Information /Explanation: Reporting Agency - Assessing In 2010 the median sales price of a house was $110,000, an increase of 22.22% from 2009 This amount is a decrease of 4.76% from 2008. The median homes sales price was $90,000 in 2009 and $115,500 in 2008. Definition: The median is used for city comparison instead of the average since it is a better statistical measure of the average home sale price and comparative data is available throughout the Twin Cities region. Source: 2010 Twin Cities Housing Market Annual Report, Minneapolis Area Association of Realtors 16 ii. Within five years (2015) residential sales prices will increase at a rate equal to or greater than the rate of increase in comparable communities X Data /Information /Explanation: Reporting Agency - Assessing In 2010 the median sales price of a house was $110,000, an increase of 22.22% from 2009 A review of comparative Cities indicates that Crystal, Fridley, Maplewood, New Hope, and Richfield have median homes that continue to decline. The Cities of Golden Valley. Shoreview and White Bear Lake have median homes sales that have increased by 6.8 %,1.9% and 2.7% respectively. Definition: The median is used for city comparison instead of the average since it is a better statistical measure of the average home sale price and comparative data is available throughout the Twin Cities region. Source: 2010 Twin Cities Housing Market Annual Report, Minneapolis Area Association of Realtors iii. All residential properties will be well maintained and landscaped E4 Data /Information /Explanation: Reporting Agency - Building and Community Standards No criteria have been established to define a well- maintained and landscaped property beyond minimum co requirements. It is anticipated that criteria will be developed in 2011. Source: Internal resources 17 0 iv. All residents surveyed will say they are proud of their neighborhood ail X Data /Information /Explanation: Reporting Agency - Administration A citizen's survey was not conducted in 2010 In 2011 we will conduct an unscientific poll throughout the year in anticipation of a statistically valid survey to be conducted in 2012. Source: v. All residents surveyed will say they are proud of Brooklyn Center K'O x Data /Information /Explanation: Reporting Agency - Administration A citizen's survey was not conducted in 2010 In 2011 we will conduct an unscientific poll throughout the yea in anticipation of a statistically valid survey to be conducted in 2012. Source: 4. Positively address the community demographic makeup and increasing cultural diversity a. All demographic groups will be represented and encouraged to participate in civic, governmental, community organizations and activities 18 L Members of all communities will have equal access and representation in civic, governmental, community organizations and activities X Data /Information /Explanation: Reporting Agency - Administration We have no data regarding access to non - governmental organizations. In 2011 we will identify and contact local civic and community organizations regarding their policies or practices for access and inclusion in activities. In 2011 we will determine if any complaints to the State Human Rights Department have been filed regarding access discrimination to City organizations. In 2011 we conduct a voluntary poll of each advisory commission to determine the age, gender and ethnic make -up of each commission. The demographic makeup of City Employment was as follows: On June 30, 2009 On June 30, 2010 Full Time White Black Hispanic Asian or A.Indian Full Time White Black Hispanic Asian or A. Indian Pacific Islander or Alaskan P. Islander or Alaskan Male 101 3 0 1 1 Male 102 6 1 2 1 Female 52 1 0 2 0 Female 53 0 0 1 0 Part Time Part Time Male 116 6 3 4 1 Male 115 13 3 4 0 Female 112 13 3 2 1 Female 112 10 1 2 1 New Hires New Hires Male 6 0 0 0 0 Male 5 3 1 1 0 Female 2 0 0 0 0 Female 3 0 0 0 0 Source: Human Resources Report EE04 and Update b. Youth will be adequately served by recreation and educational programs and activities 19 0 0 0 i. All youth desiring to will be productively engaged in recreational activities or educational programs 7 • • s j X Data /Information /Explanation: Reporting Agency - Community Activities Recreation Services 2010 CARS program and activity registrations have been "mapped" to establish a baseline and determine service gaps. A comprehensive youth survey was conducted in 2009. In 2011 we will conduct an unscientific poll throughout the year in anticipation of a more robust survey to be conducted in 2012. A multiyear grant was secured from the McKnight Foundation to continue development of the Brooklyn s Youth Council. CARS Department strategic planning is in process, with an emphasis on including underserved populations. Source: ii. Participation in community programs and activities will reflect the demographic makeup of the community X Data /Information /Explanation: Reporting Agency- Community Activities Recreation Services 2010 program and activi registrations "mapped" to establish a baseline and determine service gaps. With the assistance of the Northwest Hennepin Human Services Council, demographic information was assembled for the community. This information will be compared to the 2010 Census data, as soon as it becomes available joint grant application with Brooklyn Center School District for a Hennepin County Youth Sports Grant approved for the construction of a new community gymnasium at Brooklyn Center High School. We estimate over 16,500 youth will use 20 the gymnasium each year, once construction is completed. Source: c. The social, health and housing needs of the aging and moderate income population will be improved i. Service gaps in the social, health and housing needs of the aging and moderate income community members will be reduced and eliminated over time X Data /Information /Explanation: Reporting Agency- Business and Development In 2011 Information will be collected from CEAP, HOME, and NW Family Human Services and Hennepin County to establish a baseline of service ,gaps. The information from the 2010 census will assist the City in the determination of future senior housing needs of the community and update the Housing Element of the Comp. Plan. Source: 5. Continue to maintain and improve City infrastructure a. The City public buildings and other major equipment and physical assets of the City will be maintained and improved 21 0 0 0 0 0 0 i. Meet or exceed the minimum maintenance condition standard for City facilities t Met Target Met Target No Undetermined X Data /Information /Explanation: Reporting Agency - Public Works A specific maintenance condition standard has not been established pertaining to o City facilities but will be established and reported in 2011. The Capital Maintenance Building Plan for Municipal Public Buildings was finalized in 2007 and outlines specific maintenance priorities for each of the City's buildings to the year 2025. The 2010 CIP included $261,000 of funding for a Capital Maintenance Building project. The project is 95% complete and the remaining portions will be completed in the spring of 2011. Source: 2010 Capital Improvement Program and Capital Maintenance Building Plan November 2007 ii. Customers provide positive feedback pertaining to City facilities( clean, attractive buildings) Target NotNe X Data /Information /Explanation: Reporting Agency - Public Works A citizen survey was not conducted in 2010. In 2011, we will conduct customer/ staff surveys. Source: iii. Maintain public access and availability for City park facilities and infrastructure Targa Met: Target No Me Undetermin, d' X Data /Information /Explanation: Reporting Agency- Public Works In 2010, all park and trail facilities were kept open and maintained to the 2009 level with the addition of providing handicap accessibility to the new Willow Lane Park shelter. 2010 improvements to maintain and improve the City's arks include the following: added and installed a new park shelter including other miscellaneous facility improvements 22 at Willow Lane Park, a plan to restore the wood chip trails in Palmer Lake Park was developed in 2010, and other miscellaneous maintenance (painting, fencing repairs, irrigation upgrades, etc.) throughout the City's park system. In 2011, the Palmer Lake West park building is scheduled to be replaced. Source: iv. Reduce graffiti occurrences and complaints. X Data /Information /Explanation: Reporting Agency - Buildings and Community Standards In 2010, 38 cases of graffiti were reported, a reduction of 35.59% from 2009 and 43.28% from 2008. 59 cases of graffiti were reported in 2009 and 67 in 2008. Staff typically responded to the report within 2 days and achieved compliance in all cases. Source: LOGIS inspection database, Police Database b. Neighborhood streets and utilities will be maintained and improved i. Citizen rate reconstruction projects as meeting or exceeding expectations via survey sent to project area residents X Data /Information /Explanation: Reporting Agency - Public Works A citizen survey was not conducted in 2010. In 2011, we will conduct a survey with all project area residents. In 2010, 310 final project letters/ comment forms were sent to residents within the reconstruction project areas and 15 residents responded. Both positive and negative comments were received, many pertained to specific warranty and punch list items that remain to be completed. Source: 23 0 0 0 ii. Using a pavement index rating system, meet or exceed the established acceptable roadway rating standard X Data /Information /Explanation Reporting Agency- Public Works The City's pavement rating system is currently being updated and a standard has not been set. In 2011, the City will continue updating the pavement management system with a goal of completing the update and establishing a standard in 2012. Source: iii. Reduce pothole and roadway complaints X 7� Data /Information /Explanation Reporting Agency - Public Works In 2010, the City responded to 175 pothole issues, which was an increase from 153 in 2009. Many potholes were reported in areas where the sealcoat /roadway prematurely failed, which issue is currently being evaluated as to cause. The sealcoat program was put on hold in 2010 until this cause is determined. The sealcoat funding was shifted to pothole repairing and in 2010, public works crews spent approximately $26,000 in materials to patch and repair potholes. Additionally, $102,363 was spent in separate contracts to repair the more significant issue areas throughout the City. Source: Public Works Records iv. Reduce sewer blockage and watermain breakag %omplaints X I W. 7 X 7Data/Information /Explanation Reporting Agency - Public Works The Ci has a vigorous routine sewer maintenance ro am• however, a tracking and reporting s stem is not in lace but 24 will be implemented in 2011. An indicator of the success of the program is that in 2010, there were no City backups in City sewer lines out of the 94 possible backups reported. In 2009, there was one backup related to City owned/ maintained sewer lines out of the 99 possible sewer backups reported. The City also has significant televising, root sawing and visual inspection programs to maintain the sewer capacity and minimiz sewer blockages. There were five watermain breaks in 2010 and five in 2009. The City's reconstruction program is a significant element in meeting this goal through the systematic replacement of the utilities. Source: Public Works and Finance Utility Records v. Complete the citywide street and utility reconstruction program within 10 years (2020) x Data /Information /Explanation: Reporting Agency- Public Works In 2010, the DuPont Avenue and the Twin Lakes Area street and utility reconstruction projects were in i t iated and will be completed in 2011. In 2010, steps were implemented to advance the 2012 neighborhood street and utility reconstruction project to 2011. Future funding strategies will need to be further evaluated to maintain this advanced schedule to address issues with funding shortfalls (e.g. Street Reconstruction Fund). Source: 2010 and 2011 Capital Improvement Programs c. The traveling public will benefit from multi -modal transportation options fostered and provided by the City 25 0 0 0 L Minimize any increase to future traffic delays and congestion X Data /Information /Explanation: Reporting Agency - Public Works The collection and maintenance of this data would be relatively expensive to maintain for roadways and intersections throughout the City. Based on information available, the City will continue to take steps to reduce delays and congestion on an ad hoc basis. 2010 ongoing measures include the following: A traffic impact study was completed for the redevelopment at 7051 Brooklyn Boulevard (CEAP site) and a traffic impact study was initiated for the Shingle Creek Crossings site (Brookdale mall). Ongoing transportation improvements included preparing the plans and bidding the project for the replacement of two signal systems at the I -94 north and south ramps at Shingle Creek Parkway (the project will be constructed in 2011). These signal systems will then be coordinated with the Freeway Boulevard signal system to improve the operations and decrease delays experienced through that corridor. Source: ii. Minimize the amount of regional traffic flow on local streets X Data /Information /Explanation: Reporting Agency - Public Works The collection and maintenance of this data would be relatively expensive to maintain for roadways and intersections throughout the City. Based on information available, the City will continue to take steps to reduce delays and congestion on an ad hoc basis. 2010 ongoing measures include the following: City staff will be working with Mn /DOT and Hennepin County in 2011 with the planning of the regional transportation corridors including Brooklyn Boulevard and Highway 252. In 2010, Mn /DOT completed a ramp metering project at several interchanges along Highway 100 and completed a bus lane project along TH 252. Source: 26 iii. Increase alternative modes of transportation used X Data /Information /Explanation: Reporting Agency - Public Works The mis sing segment of regional trail along Bass Lake Road between Xerxes Avenue and S hingle Creek Parkway was constructed in 2010 In 2010, the City completed the transfer of the Twin Lakes and Shingle Creek regional trails to the Three Rivers Park District, which will lend to better promotion of the regional trail through added signage, kiosks, park mapping, additional funding from the park district through their maintenance budget and capital improvement program, and simply by having an expert regional trail manager as a partner with their ideas, programs and comprehensive planning within the borders of the City. Source: d. Citizens will benefit from the expansion and improvement of needed technology infrastructure as viable options become available i. Reduce City government expenses through the application of technology Data /Information /Explanation: Reporting Agency- Administration • New technology in the BC Liquor Stores improved technology including a new security surveillance system, and a new Point of Sale (POS) system that tracks inventory and improves efficiency of customer checkout. • GIS improvements allowed mapping of certain inspection functions in Building & Community Standards (BCS) increasing the number of inspections conducted. In -field printers for BCS allowed immediate posting of vacant building and abatement notices. • The Automated Meter Reading project was completed in 2009. However, in 2010, the city realized benefits of the new technology such as no longer r equiring the mailing of meter reading cards, more accurate readings since 27 0 0 0 usage estimations were no longer required. The system also provides the city the capacity to detect leaks, conserving water and costs. • The special assessment process was automated through LOGIS system to provide a more efficient and accurate accounting of special assessments for city facilitated abatements and applicable past due bills. • Changed voice service provider for all City buildings from Qwest to Integra Telecom Inc.; resulted in an annual savings of $11,640. • Implemented the City's first full functioning multifunction device (Copier, Printer, Scanner, and Fax) at the Police Department. This single device replaced a copier that was over ten years old and removed the need of two laser printers and a fax machine reducing operating expenses (i.e. printer supplies service and support) and provides a greener path for printing. More multifunction devices will be added in other departments in 2011. • The City's fleet management software, FleetFocusFA, moved from LOGIS IT provided to City IT provided. After the initial purchase of the software, the annual software maintenance costs will be reduced by approximately $10,000 annually. • Liquor Store #1 fiber optic connection to the City network; estimated cost savings of $10,000 annually. • In conjunction with the Bass Lake Road Street Improvement Project, fiber optic conduit installed for future implementation. • Enhanced productivity with the ability to hold virtual meetings through Cisco Unified Meeting Place. Source: H. Improve City Services to the citizens through the application of technology s • s Data /Information /Explanation: Reporting Agency - Administration • The use of the online services continued in 2010 with 273 Questions and Requests processed through eCitizen, the online request center. • A new POS system in the BC Liquor Stores allowed more efficient service to customers, as well as inventory tracking and security improvements. 28 • Public Wi -Fi was made available at City Hall in 2010 expanding this service beyond the EBHC and Community Center. • Council packets, Financial documents, City Newsletters and Recreation brochures were made available on the website through a link on Laserfiche. This allowed website users better access to larger documents instead of the previous pdf format. • Facebook accounts were established for the Earle Brown Heritage Center and Brooklyn Center Centennial Celebration to notify "friends" of upcoming events. • Wireless media services were installed on Water Tower #2. • Implemented new City -wide voice system which included new telephone hardware, software, voicemail, and VPN /field communication. New processes were put in place to enhance the citizen experience. • Implemented public wireless at City Hall. • Implemented Laserfiche Web Link. Available from the City website, allows the public read -only access to applicable documents stored on the City's Laserfiche document management server. • Implemented new Liquor Point -of -Sale (POS) System. The new system offers improved business processes and customer experience (age verification. Wine Club membership, speed of credit card processing, etc). • Became Payment Card Industry (PCI) Compliant by conforming to a set of requirements designed to ensure that the City maintain a secure environment in the processing, storing or transmitting of credit card information. • Enhanced City network security by the implementing hardware firewalls. • Implemented new police squad video camera system. Improves the capturing of evidence and accountability to the public. • Implemented irrigation software for the Bass Lake Road project and for future street projects. • Replaced twenty year old police evidence system with EvidenceOnQ software. This software allowed for improvement in the processing and tracking of police evidence and accountability to the public. • Source: Internal data 29 0 0 0 • • • iii. Preserve environmental resources and conservation of energy through the application of technology • X Data /Information /Explanation: Reporting Agency - Administration • An energy audit was conducted of the City Hall and Community Center. • The chiller and boiler in EBHC were replaced with more efficient models through a Federal Energy Grant. • The replacement of the lighting at the Public Works Garage with higher energy efficient fluorescent lighting was begun in 2010. Source: Internal Data 6. Effectively respond to the increased public awareness and interest in environmental sustainability and "green community" issues a. Public appreciation of the environment will be enhanced and expanded L Within three years (2013) all residents surveyed will understand the value of recycling and energy conservation and at least 70°o will have changed their behavior to conserve environmental resources s • e X Data /Information /Explanation: Reporting Agency - Administration A citizen survey was not conducted in 2010. A statistically valid survey will be conducted to establish a baseline comparison for the 2013 survey. 30 ii. Within five years (2015) energy consumption in the City will be reduced significantly X Data /Information /Explanation: Reporting Agency - Administration Baseline data will be collected in 2011 to determine the level of city wide energy co n s umption. The City will develop an energy conservation plan in 2011 with the goal of implementing highest valued best practices described in the Office of the State Auditors July 2, 2008 "Reducing Energy Costs" report. In 2011 we will investigate the benefits of participating in the State of Minnesota Green Step City project. Source: iii. Within five years (2015)City government energy consumption will be reduced significantly cl Data /Information /Explanation: Reporting Agency - Community Activities Recreation Services A baseline for city building energy consumption was established in 2010. Energy and Waste Assessments were conducted by the Retired Engineers Technical Assistance Program for City Hall, Community Center and Earle Brown Heritage Center buildings. Additional reviews are planned for 2011. The city received a grant from the Federal Office of Energy Security's Local Government and School District Renovations program. The work included lighting retrofits at the Public Works Facility and replacement of two boilers and a chiller at the Earle Brown Heritage Center. All projects will result in significant reductions in energy use. Source: 31 0 0 0 b. The purchasing power of the City will support the goals of an environmentally sustainable community i. The City will purchase recycled materials whenever costs are reasonable and quality is acceptable e • • X Data /Information /Explanation: Reporting Agency- Fiscal and Support Services The organization has been purchasing paper with a 30% post - consumer (rec cy led) content (all white paper stock). Other sources have not been explored or developed. Source: purchasing records ii. The City will increase the share of purchased recycled materials by 10% annually for the next five years • e • X Data /Information /Explanation: Reporting Agency - Fiscal and Support Services A baseline from which to calculate the increase in purchase of recycled materials has not yet been developed. A baseline will be established in 2011 using 2010 purchasing records. Source: Purchasing 32 iii. The City will eliminate the use of products, chemicals or compounds that pose a risk to human health or to the environment whenever a viable cost effective alternative is available X Data /Information /Explanation: Reporting Agency- Fiscal and Support Services For 2010 there is not data assembled to determine the extent to which the City may be able to find alternatives to products, chemicals or compounds that are environmental hazards. During 2011 the City will review products, chemicals and compounds used by the City to determine whether alternative products, chemicals or compounds are available that are not hazardous to human health or to the environment. Source: Purchasi Building Mainten iv. The City will purchase environmentally friendly equipment and vehicles whenever performance requirements and cost are comparable. X Data /Information /Explanation: Reporting Agency - Fiscal and Support Services The City has replaced 13 vehicles (cars and light duty trucks) with flex fuel vehicles. Another 8 existing fleet vehicles will be replaced with flex fuel vehicles in 2011. Source: Central Garage 33 0 0 0 ONGOING GOALS - Desired Outcomes - Success Targets 1. We will continue to provide streamlined, cost effective, quality services with limited resources a. The quality of service delivered by the city will consistently meet or exceed customer expectations i. Customer surveys for City services delivered will reflect customer satisfaction from not less than 90% of respondents Target Met Target • • • X Data /Information /Explanation: Reporting Agency - Administration Customer service surveys were conducted for EBHC Operations in 2010 The results of these customer service surveys found that 95.3% of the respondents indicated that the service met or exceeded expectations. In 2011 customer service surveys will be expanded to include city services throughout the organization. Source: EBHC Annual Survey Report b. Service delivery will improve on an ongoing basis i. Implementation and execution of continuous improvement programs throughout all departments Target Met Target N ot • X Data /Information /Explanation: Reporting Agency- Administration 34 In 2011 we will select a resource to provide guidance for a Continuous Improvement Program and we will begin training staff in basic Continuous Improvement Tools and processes. Source: ii. Qualification for Malcolm ealdridge or comparable quality improvement award 91 Data /Information /Explanation: Reporting Agency- Administration It is anticipated that the City will be ready to apply for guali improvement process recognition by the end of year 2013. iii. Cost effectiveness performance benchmark comparisons from each department will reflect upper quartile performance for each high priority benchmark measure X Data /Information /Explanation: Reporting Agency- Administration It is anticipated that the bench marking program will be begin by mid- year 2012 and will be fully implemented by mid- year 2013. Source: 2. Ensure the City's financial stability of the City a. City funds will be protected against loss 35 0 0 0 L All City funds will be FDIC insured up to the legal maximum per account MUM X Data /Information /Explanation: Reporting Agency - Fiscal and Support Services City funds in banking institutions are insured to the FDIC limit of $ 250,000 per account This requirement is overseen by the banking institutions with which the City does business and is verified annually by the City's financial auditors Source: 2009 CAFR ii. Any funds in excess of the FDIC maximum in any one account will be properly collateralized Target'_et Target • • • X Data /Information /Explanation: Reporting Agency - Fiscal and Support Services For 2010 there were no City funds in excess of the FDIC maximum coverage requiring collateralization. This is the result of the daily clearing of the general checking account into the 4M fund which does not require demonstrated collateralization. Source: Banking agreement with US Bank /4M iii. The City's investment portfolio will be diversified so as to minimize potential losses on individual securities !M X D nation: Reporting Agency - Fiscal and Support Services In 2010 there was no individual security in the City's portfolio that exceeds 5.0% of the total portfolio value. Source: Monthly Investment Securities Inventory report 36 b. City administration will provide meaningful short, intermediate and long term fiscal planning L The operating budget document will provide annual and multi -year operating plans ►Ll Data /Information /Explanation: Reporting Agency - Fiscal and Support Services We have established multi_years budgets for utilities, capital project funds, debt ser funds and the Central Garage Fund A multi year operating planning has not vet been developed for the Gen eral Fund. A multi -year plan for the General Fund covering at least two years will be developed during 2011 for the 2012 and 2013 fiscal years. Source: 2010 Budget, 2011 Budget ii. Staff will annually provide life -cycle capital plans for all long -lived assets X Data /Information /Explanation: Reporting Agency - Fiscal and Support Services Life cy_cle Rlans have been developed for Public Infrastructure through the Capital Improvement Program and for vehicles and equipment through the Central Garage budget Planning for buildings has been accomplished through the Capital Building Maintenance Plan. Source: 2010 Budget preparation materials (Central Garage), 2010 & 2011 Capital Improvement Plans, Capital Building Maintenance Plan c. The City will take appropriate actions to buffer essential government services against the effects of significant economic downturns 37 0 0 0 L Fund reserves as indicated by year end cash balances will be maintained at levels allowing for short term funding of operations in emergency situations 'li J ujula s X Data /Information /Explanation: Reporting Agency - Fiscal and Support Services 2010 year end cash balances for Utilitq operations and debt service payments were established at levels a llowing for short term operations and emergencies. This is demonstrated by the cash flow budget projections. The General Fund cash balance for the end of 2010 is estimated at $ 8,909,178 or 54.3% of the 2011 General Fund operating budget. This exceeds policy requirements and allows for up to six months of uninterrupted operation in an emergency situation. In addition, the Emergency Capital Fund must be maintained at a minimum level of $1,000,000 according to City Council policy. As of December 31, 2010 it stands at $1,440,000. Source: 12/31/2010 bank reconciliations, 2011 budget, Cash flow plans for 2011 Utility and Capital budgets, ii. Essential services as determined by the City Council will be funded from non- volatile resources -. X Data /Information /Explanation: Reporting Agency- Administration Depending on how the Council defines essential services this success target may have been met in 2010. For the purpose of this report the most volatile sources are defined as State Assistance, i.e. LGA /MVHC. Other relatively volatile sources include construction permit fees which depend upon construction activity. The least volatile sources are user fees and property taxes. 83% of the Water Utility Operations is funded by user fees 9% is funded by Tower Rental proceeds, potentially a more volatile revenue source. 38 99 % of the Sanitary Sewer operation is funded by user fees. 99% of the Storm Sewer Operation is funded from user fees. 99 % of the Street light operations are funded from service charges. 83% of General Fund expenditures are funded using property taxes.5.7% are funded from charges for services. 4.5 % of the General fund budget is funded from State Assistance and 2% is funded from construction permits. Therefore 6.5% of the General Fund revenue comes from the most volatile revenue sources. Source: d. The City will position itself for economic growth i. The City will keep current and adhere to the Comprehensive Plan 39 • i i • e a Source: 3. We will move toward maintaining or lowering the level of property taxes a. Except in extraordinary circumstances the property tax levy will not increase faster than the inflation rate i. Property tax levy increases should not exceed the rate of inflation TargetVei�� Target Not Me �Uhdeter,minea, X Data /Information /Explanation Reporting Agency - Administration The 2010 inflation rate (implicit price deflator) was 1.69%. The 2011 budget provided for a total levy increase of 2.53 %. The median valued home experienced a slight City property tax reduction of $1.73 or .20% Source: ii. If the property tax levy increase exceeds the rate of inflation a clear, extraordinary circumstance justifying the increase will be identified X Data /Information /Explanation Reporting Agency- Administration In the 2011 p budget levies to make u for State unallotment increased from $505,602 to $800,160. This $305,000 increase represents 2.1 % of the levy. In other words the unallotment levy increase exceeded the 1.69% increase in inflation. Without this reduction in State assistance the aRRroved budget could been adopted with a levy decrease. Source: 40 b. The City will expand the proportion of industrial and commercial tax base to relieve the residential property tax burden L The City commercial /industrial tax base increases at a rate faster than the residential tax base X Data /Information /Explanation: Fiscal and Support Services The commercial/industrial tax base did not increase faster than the residential tax base. From 2009 to 2010 commercial/ industrial tax base as measured by tax capacity calculations from December 2009 and 2010 decreased 8.78% From January 2009 to January 2010 residential tax base as measured by tax capacity calculations from December 2009 and 2010 decreased 11.95% The commercial/ industrial tax base decreased at a slower rate than the residential tax base. Source: Hennepin County report on Taxable Market Values dates 12/3/2009 and 12/2/2010 4. We will ensure the city's influence at the legislature a. State and Federal legislators will be informed regarding the City needs that may be affected by legislation 41 0 0 0 i. Annually the City Council and staff will assess legislative needs and communicate directly with appropriate Local, State and Federal legislators X Data /Information /Explanation: Administration In 2010 we met and communicated with State Legislators regarding many issues including the Howe Fertilizer Project, State Aid, constituent concerns, and public safety. Source. b. We will maintain positive relationships with State and Federal legislators i. Legislative officials will address the City Council annually regarding their efforts on behalf of our shared constituents X - T Data /Information /Explanation: Administration Representative Hilstrom was able to meet along with Commissioner Opat on March 22, 2010. Senator Scheid was unavailable due to legislative duties. Source: 42 ii. Legislators will sponsor and support legislation on behalf of the City X Data /Information /Explanation: Administration In During the 2009 -2010 legislative session Representative Hilstrom and Scheid were the Chief Authors of legislation benefiting Cities and Brooklyn Center, including LGA study group, TIF modification building code enforcement, ISD 279 and ISD 286 legislation, Homestead property tax, Homestead - lender foreclosure mediation, Northwest Hennepin Family Center funding, school district operating debt levy, school district revenue formula. Source: Office of the Revisor of Statutes c. City will receive direct support for City needs from State, County and Federal legislators 5. Improve the City's image with citizens and others a. Citizens and others throughout the State will recognize Brooklyn Center as a safe, quality, attractive community in which to live, work and play L The rate of property value increase in each property classification will equal or exceed the average rate of increase in Hennepin County and in the State Data /Information /Explanation: Fiscal and Support Services There is insufficient data available currently to make a determination on this target Rates of Property Value Increase or (Decrease) as determined by aggregate classification numbers for taxable market values by property classification are as follows: 43 0 0 0 City of BC Hennepin County State of MN Commercial ( 7.97 %) data not available data not available Industrial (10.17 %) Residential (11.94 %) Apartment ( 6.33 %) As data becomes available City staff will complete the comparison chart and make a determination. Source: Hennepin County report on Taxable Market Values dates 12/3/2009 and 12/2/2010 ii. Citizen survey results will reflect the perception that Brooklyn Center is a safe, quality, attractive place to live, work and play TargefMet Target No .- -. X Data /Information /Explanation: Administration No survey was conducted in 2010. A statistically valid survey will be completed in 2012 in response to this success target. In 2011 informal polls will be taken to provide feedback regarding this issue. Source: iii. Positive press regarding the City Of Brooklyn Center will increase X Data /Information /Explanation: Administration 1. The City received positive press regarding specific issues as follows: a. Crime reduction in the Star Tribune b. Random Acts of Kindness program in Star Tribune c. Development of FBI Regional Offices (many media outlets, local and AP) d. Centennial Event Kickoff through Sun Post and Channel 12 44 e. WiLam Kickball Event and JCCP 2. Various positive subjects were reported by Channel 12 Community News and linked to the city website through the city video series. Source: Internal Data 6. We will ensure the City drinking water is high quality and that the storm water is properly managed a. The City drinking water will meet or exceed safe drinking water standards of the State of Minnesota i. City will meet or exceed all safe water standards X Data /Information /Explanation: Public Works No contaminants were detected at levels that violated federal drinking water standards as outlined in the Citv's annual Consumer Confidence Report. This report is prepared in accordance with Environmental Protection Agency and State of Minnesota regulations. Source: City Watch, Summer 2010 Edition 171Source: ii. The water supply will be protected against emerging and potential water contaminants 45 0 0 0 i Target e •- -e In 2010, there were no contaminants identified in the City's well water supply that exceeded or violated f drinking water standards. The City continues to maintain and protect our well water supply through our Wellhead Protection Plan. Additionally, in 2010 we proactively participated with the state agencies by testing our well water and obtained soil borings in response to potential contamination through the use of fire retardant foam chemicals - no releases were identified. Other ongoing partnering work includes remediation of the dry cleaning site at 1910 57th Avenue, remediation of the Joslyn site and associated parcels and completion of the remediation of the dry cleaning site at 4215 69th Avenue. Source: Wellhead Protection Plan, July 2005 b. Storm water runoff will be managed in an efficient and environmentally sensitive manner i. The City will implement and maintain all priority elements of the Brooklyn Center Local Water Management Plan by 2012 X X Data /Information /Explanation: Public Works A specific priority completed in 2010 includes the initiation of the Wetland Functions and Values Assessmen which will be full ccoomj?leted in 2011. Ongoing priorities that have been met include street sweeping, pond inspection and maintenance, and water quality best management practices maintenance (e.g. sump manholes and grit chambers). Outstanding priorities include completing the Shingle Creek storm sewer modifications, completing storm sewer base mapping and GIS system record retention, and updating the City's illicit discharge ordinance and policy plan. Source: Local Water Management Plan, June 2006 2/14/20111:57 PM 46 0 Work Session Agenda Item No. 2 0 MEMORANDUM - COUNCIL WORK SESSION DATE: February 24, 2011 TO: City Council FROM: Mayor Tim Willson Prepared by: Curt Boganey, City ManagQ* SUBJECT: North Port Park Improvements Recommendation: It is recommended that the City Council consider providing direction to staff regarding the request from Dominic Thor and Ker Xiong. Background: The Mayor received the enclosed letter from Ker Xiong indicating a desire to make improvements at Northport Park. The Mayor has suggested that this matter be referred to the Park Commission for a recommendation. Policy Issues: Council Goals: Select not more than two. Strategic: 5. We will continue to maintain and upgrade City infrastructure improvements Ongoing: 5. We will improve the image of the City with citizens and others 17essron: f rrsetring an autuc.tn e, dean, sufe coninzunztj� that enhances the quality of life anti preserves the public trust To: Mayor Tim Willson I, Ker Xiong am writing this letter behalf of my buddy Dominic Thor, we are doing a service project and had decided to pick Northport as our service learning project. There are many things at Northport that can be improve such as the basketball court and the basketball rims which the city have not really care about. We did some research and found out that if the rim was to be replaced by another rim, it would only cost $25- $50 for one rim to be replaced. More than that, many people would like to have more than one water fountains at the park Northport. We image a place where there is peace and beautiful and if Northport had the kind of feeling there, there won't be graffiti, littering, and we are pretty sure the environment will be cleaner than before. We are trying to help the park because we love that park, this coming up summer we are trying to adopt the park to make it a healthy park, making the park a good looking environment people would enjoy the park. I Thank you for your time to read over my request and if you are willing or not willing to do the things that' I requested just give us back a feed back on your opinion or an answer. Thank you Sincerely, Dominic Thor, Ker Xiong Work Session Agenda Item No. 3 MEMORANDUM - COUNCIL WORK SESSION ® DATE: February 22, 2011 TO: Curt Boganey, City Manager FROM: Steve Lillehaug, Director of Public Works /City Engineer 5� t SUBJECT: Highway 252 Update Recommendation: It is recommended that the City Council consider providing direction to staff regarding transportation planning for the Highway 252 corridor. Background: Highway 252 is a roadway corridor that has been identified with longstanding local and regional transportation issues ranging from poor intersection operations with long delays, to pedestrian safety issues, to an identified high vehicle accident area. Highway 252 through Brooklyn Center falls under the jurisdiction of the Minnesota Department of Transportation (Mn/DOT). Mn/DOT, along with the Cities of Brooklyn Center and Brooklyn Park, have been studying the issues and potential solutions over the years but have not jointly identified an acceptable plan to address these issues. Until recently, Mn/DOT was planning for Highway 252 to be an expansion corridor (e.g. freeway). However, new funding strategies and priorities identified in the new Metropolitan Council and Mn/DOT 2010 Transportation Policy Plan (TPP) eliminated the planning and • funding for the expansion of Highway 252 through the cities of Brooklyn Center and Brooklyn Park, other than the addition of a northbound lane on either side of 81 Avenue in Brooklyn Park. Although major improvements to Highway 252 are not included in the TPP, the issues remain. On October 11, 2010, the City Council discussed developing an action plan that would identify and shape the potential planning process for the Highway 252 corridor. The plan must take into consideration both regional and local transportation issues. The following provides a recommended strategy that lays out the different elements to indentify and address the multiple transportation issues, both short-term and long -term, surrounding the Highway 252 corridor within the City of Brooklyn Center and potentially through the entire Highway 252 corridor from I -694 to TH 610. Phase 1 — Feasibility Study The Phase 1 study would focus on collectively identifying all local and regional transportation issues, existing and future conditions, developing interim and ultimate concepts, coordination with Mn /DOT and other partners (e.g. Brooklyn Park), identifying funding strategies, and identifying an implementation strategy. The timeline for this study would consist of approximately four months and is estimated to cost approximately $60,000. Phase 2 — Implement Interim Solutions Phase 2 would consist of implementation of interim improvements. Interim improvements would • include smaller improvements such as turn lane and /or signal revisions, geometric modifications, addition of a bridge, or other isolated projects with independent utility, yet accommodating to the Mission: , Ensuring an attractive dean a sfe communitr that enhances the qualitt•o e _.�. 4 . of ltfe and preserves the public first MEMORANDUM - COUNCIL WORK SESSION ultimate solution where appropriate. Funding for interim projects could be provided by pursuing • such programs as the Highway Safety Improvement Program (HSIP), Surface Transportation Program (STP), future special grants such as the Safety and Mobility (SAM) interchange program, or local programs including Municipal Agreements or advancement of Municipal State Aid. Each project would require appropriate environmental documentation, staff approved layout, permitting, identification of funding sources and other documentation as required. Timeline requirements for the development of each project could range from six months to a few years, depending on funding requirements, right -of -way impacts and project development. Interim projects could occur anytime over the next 20 years and beyond, depending on available funding sources. Assuming an interim project associated with each of the six at -grade intersections along the Highway 252 corridor, a rough estimation of $1.1M per intersection improvement with planning /engineering would total approximately $6.6M. If significant interim improvements were identified that would include a bridge or other major improvement, costs would be considerably more. Phase 3 — Ultimate Plan Phase 3 would involve the ultimate solution as would be defined by the feasibility study. Phase 3 improvements would likely require an Environmental Assessment (EA) or an approved Environmental Impact Study (EIS) documenting the various impacts, a staff - approved geometric layout, right -of -way planning and mapping, land use study, traffic study and the development of preliminary plans. The planning for a holistic corridor study would be $1M or more. Phase 3 improvements could be implemented incrementally as well. The timing to complete the Phase 3 planning could take upwards of two or more years to complete, with actual construction dependent on funding and the many other factors that could result in more than 20 years and beyond until final implementation. Both Mn /DOT and the City of Brooklyn Park have been approached to discuss partnering opportunities and both have indicated a willingness to work with the City of Brooklyn Center, dependent on the scope and benefit to each entity. Policy Issues: Does the City Council desire to pursue Phase 1, Phase 2 and /or Phase 3 planning? Council Goals: Strategic: 2. We will aggressively proceed with implementation of City's redevelopment plans 5. We will continue to maintain and upgrade City infrastructure improvements • Mission: Ensuring an attractive, Ciean, sglf , C'oinniunhY that enhances thequalitl` olf iifL a ndpre.ser6v @s the public trust Work Session Agenda Item No. 4 MEMORANDUM - COUNCIL WORK SESSION DATE: February 22, 2011 TO: Curt Boganey, City Manager a FROM: Gary Eitel, Director of Business and Development i SUBJECT: Presentation of Tax Increment Report Relating to the Creation of Tax Increment District No. 5 (Shingle Creek Crossings) Recommendation: Jennifer Wolfe, Senior Project Manager with Springsted Incorporate, the City's financial consultant, will have a PowerPoint presentation on the establishment of Tax Increment District No. 5, and outline how this Tax Increment District will fund the economic assistance necessary for the redevelopment of the Brookdale Mall properties into the Shingle Creek Crossing Planned Unit Development. The purpose of this work session items is to inform and prepare the City Council for the March 28' public hearing on the creation of this Renewal and Renovation District. No formal action is required. Background: On February 14, 2011, the City Council adopted Resolution No. 2011 -32 which authorized the scheduling of a public hearing on March 28, 2011 to consider modification to the redevelopment plan for Housing and Redevelopment District No. 1, establishment of Tax Increment Financing District No. 5 and the Adoption of a Tax Increment Financing Plan. The proposed Tax Increment Financing Plan provides for the creation of a 16 year Renewal and Renovation District for the following eight Brookdale parcels included in the demolition and redevelopment plans for the Shingle Creek Crossing Development. -The Mall and in -line tenants parcel. -The Mervyn's parcel. -The Penney's and Penney's auto parcels. -The Macy's parcel and eastern parking lot. -The parcel for the vacant lot (previously DQ Chill and Grill). -A small outlot for the Northway entrance Attached is a copy of the draft Tax Increment Finance Plan and the February 10 staff memorandum and supportive information. Policy Issues: Does the City Council wish to have additional information prepared for the March 28, 2011 public hearing relating to the creation of Tax Increment District No. 5? Mission: Ensuring an attractive, clean, safe community that enhances the quality of life antipreserves the public trust MEMORANDUM - COUNCIL WORK SESSION Council Goals: Strategic: 2. We will aggressively proceed with implementation of City's redevelopment plans I I i I i .Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust Housing Development and Redevelopment Project No. 01 Project Areas I; If I h al h. i, kill. C G M Al" PA ER LAKE PARK PI O tF� ? 1 h 71' ... ..... .. ....... .... . 0 n 1. ij 3 ': : � T E, t .c B tlFl € �� � � � 5 a CT NX "0 R'. . .. . . . . . . . � j, I W� LOCAL STREET 4 INDEX 10 Z . ......... MEE 1 1 7 -1.1 $ "M Z V Q, =AM M �"V HE'S, 201m. Legend Q A Project Area Boundary TIF 5 Parcels W + - F3 M. Brooklyn Center GIS J Tax Increment Financing District No. 5 Shingle Creek Crossing Town Center P.U.D. Eyo:I GAVE N _ z 59TH AVE N .::: ¢ 58 1 /2 AVE N Not? % , r 58TH AVE N ... d m TY:I �Ab 10 — $ASS LAKE R© ' ADMIRAL iN T 1V zi 56 TNgVE 56TH AVE N } E RtGON DR Z ¢ f p; 55TH AVE N 55TH AVE ,N P 2 z p Qy��; ti . O� > z > _. : _ ut z 54TH'AVE N' t •: o, _ w Q w.: Z ..54TH 53RD PL N z z. LILAG RR N `� LU 53RD AVE N rr r r 53RD AVE N 53RD AVE N z w z € Q Q ; / Q LIJ iX (� z to ¢ z w u[ ILL X X z 51 STAVE N TIF 5 .. j Lu 50TH ... ,.. N 'I _ AVE N '.. ¢ _50TH AVE N <, 48TH AVE N, ,r 3 w rB ty O! a KLYN TER Brooklyn Center GIS o oos City of Brooklyn Center, Minnesota Tax Increment Financing District No. 5 (a Renewal and Renovation District) For The Shingle Creek Crossing TIFProject Time Schedule for Public Hearing on March 28, 2011 Date of Event Event Monday, January 24, 2011 EDA Executti ssion @ TBD Discussion of Proposed Prod r IF District Creation Monday, February 14, 2011 City �rtc11 calls for public hey @ 7:00 PM f� nday, March 28, 2011 o ; Js � er approval= TIF District No 5 (rAldtion proved ennedy & Graven) Thursday, February 17, 2011 Phan rn Commission 7:00 PM Cons "`] �h tut�f revised P� pproval of resolution determining TIF Pigh�onfdo to general plan the redevelopment of the city (resoldo =jarvvided Bynnedy &Graven) 0A ., On /Before Februa 24, ;,, Cr��n atatt School Districts receive impact fetters ry and TIF Plan Establishment ry R (sent by Springsted) 0 days prior to public hearing Mond Fero 2011 EDA/City Council Worksession @ Discussion of TIF District ttt >VI (Optional) Thursday, lt+l ch 17, 2011 Publication of notice of public hearing on Deadline .. March 8 Establishment of TIF No. 5 (arrangements made by City) 13 "" 10 -30 days prior to public hearing Monday, , City d March 28 2011 Ci Council holds p ublic hearing, and adopts resolution consenting to a a @ 7:00 pm establishment of TIF District No. 5 (resolution provided by Kennedy & Graven) Monday, March 28, 2011 EDA adopts resolution establishing TIF District No. 5 Following City Council Meeting (resolution provided by Kennedy & Graven) After March 28, 2011 Filing of TIF District Establishment (completed by Springsted) Prepared on January 21, 2011 I i I Economic Development Authority in .:and for the City of Brooklyn Center, Minnesota Modification to Redevelopment P% for Housing Development and Redevelopment Project No.1 And Tax Increment Financing Plan for Tax Increment Financing D ct No. 5 (A Renewal and Renovation rict) Shingle Creek rOSSing Project Within Housing Development and Redevelopment Project No.1 Dated: February 1 G 2011 (Draft) I Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street, Suite 300 St. Paul, MN 55101 -2887 (651) 223 -3000 WWW. SPRINGSTED. COM TABLE OF CONTENTS s e Section Pa I q() SectionI Definitions .............................................................................................. ..............................1 Section II Modification to Redevelopment Plan for Redevelopment Project ........................ ..............................1 Section II.A Statement and Finding of Public Purpose ............................................. ............................... 2 Section 11.6 Statutory Authorization ....................................................... ..................................... 2 Section II.0 Statement of Objectives ............... ............................... ................... ............................... 2 Section III Tax Increment Financing District Plan for Tax Increment Financing' District No. 5 . ............................... 2 Section III.A Designation of Tax Increment Financing District as a Reneuual and Renovation District .................. 2 Section 111.13 Duration of the TIF District .................... ............................... .0 ............................ 4 Section IILC Property to be Included in the TIF District ... ....... .............................. . ........................ 4 Section III.D Property to be Acquired in the TIF District .......... ......,................... 4 Section 111.E Specific Development Expected to Occur Within the TIF District« ............ ........ ............... 4 Section IILF Findings and Need for Tax Increment Financing .,;: _., , .................. ............................... 5 Section III.G Estimated Public Costs............. . .. . . .. ...................................................... 6 Section 111.H Estimated Sources of Revenue.................................... .. , ................... ............................... 6 Section 111.1 Estimated Amount of Bonded Indebtedness. ......... 7 Section III.J Original Net Tax Capacity ........... ........ ......... ............................... 7 Section III.K Original Tax Capacity Rate .......... ....... ..... ................ ............................... 7 Section TILL Projected Retainer Captured, Net Tax Capacity and Projected Tax Increment .............................. 8 Section III.M Use of Tax fn crement....... . ................. Section III.N Excess Tax Increment .... ................................... ............................... 9 Section 111.0 Tax Increment Pooling and the ,Five Year Rule .,. .................................... .............................10 Section I II P Limitation on�� J " ' Expenses .. .................................. .............................10 Section lit Q Limitati t o Propa' I of Subject to Improvements -Four Year Rule ........ .............................11 k Sectiori.Ill'`:R Estimatec�iact on a Taxin Jurisdictions r 11 Section IILS Prior Planned �rovemer�ts ........................................................... .............................12 SectioMI T Development Agee . ents ....... ........................................................ .............................12 Section III U-Assessment A reements ................................................................. .............................12 9 Section III .V Modifications of the Tax Increment Financing Plan ................................. .............................12 Section I II.W Administration of ttie Tax Increment Financing Plan ............................... .............................13 Section III.X Financial Reporting and Disclosure Requirements .................................. .............................13 Map of the Redevelopment Project Area ................................................................. ............................... EXHIBIT I Map of the Tax Increment Financing District ........................................................... ............................... EXHIBIT II Summary Finding for Renewal and Renovation District .......................................... ............................... EXHIBIT III AssumptionsReport ....................................................................... ............................... ........................EXHIBIT IV Projected Tax Increment Report ...................................................... ............................... ........................EXHIBIT V Estimated Impact on Other Taxing Jurisdictions Report ................. ............................... ........................EXHIBIT VI Market Value Analysis Report ....................................................... ............................... ........................EXHIBIT VII Projected District Cash Flow and Bond Repayment ..................... ............................... ........................EXHIBIT VIII Economic Development Authority in and for the City of Brooklyn Center Section I Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "Authori " means the Economic Development Authority in and for the City of Brooklyn Center. "Brooklyn Center School District" means Independent School District No. 286, Minnesota. "C�t "" means the City of Brooklyn Center, Minnesota; also referred to as a "Municipali "City Council" means the City Council of the City; also referred to as the "GoverA ody " . p "County" means Hennepin County, Minnesota. " "EDA Act" means Minnesota Statutes, Section 469.090 to 469.108, inclusive, as amended;' ,. "HRA Act" means Minnesota Statutes, Section 469.001 to 469:447, inclusive, as amended. "Redevelopment Plan" means the Redevelopment Plan for the ,Redevelopment Project. "Redevelopment Project" means Housing Development and Redevelopment Project No.1 in the City, which is described in the corresponding Redevelopment Plan. "Project Area" means the geographic area of the Redevelopment Project. "Robbinsdale School District" mean __ p School Distract No 281; Minnesota. 'd e "School Districts" means call the B oklyn Center and Robbinsdale School Districts. "State" means the State of Minnesotak "TIF Act" means Minnesota Statutes Sections 469:174 throug`469.1799, both inclusive. "TIF District " means Tax lncremenf Financing District No. 5. "TIF Plan" means the tax increment financing Ian for the TIF District (this document). Section II Modification toRdevelopment Plan for Redevelopment Project AV The following text rept&O'll M si ilodification to the Redevelopment Plan for Redevelopment Project No. 1: This modification represents a.k� of the goals and objectives set forth in the Redevelopment Plan for Redevelopment Project No 1. Generally, the substantive changes include the establishment of Tax Increment Financing District No. 5 to assist in the redevelopment of the Brookdale Mall by Gatlin Development Company (the "Developer ") under the terms of a Development Agreement. The land in TIF District No. 5 is shown in Exhibit I. The Estimated Public Costs is modified to include those set forth in Section III.G of the Tax Increment Financing Plan for Tax Increment Financing District No. 5. For further information, a review of the Redevelopment Plan for Redevelopment Project No. 1 is recommended. It is available from the City Administrator at the City of Brooklyn Center. Other relevant information is contained in the Tax Increment Financing Plan for Tax Increment Financing Districts No. 1, No. 2, No. 3, and No. 4 located within Redevelopment Project No. 1. Springsted Page 1 Economic De veiopment Authority in and for the City of Brooklyn Center A map of Redevelopment Project No.1 is attached as Exhibit I. Section ILA Statement and Finding of Public Purpose On April 25, 1994, the City Council and Authority expanded the geographic boundaries of the Earle Brown Farm Redevelopment Project to include Housing Development Project No. 1 and other properties and provided additional housing powers. The modified redevelopment project is renamed Housing Development and Redevelopment Project No. 1. The Authority intends to use the powers allowed under the EDA Act and Hl, :c to promote development and redevelopment through the City and to pool resources in order to reduce finandat:barriers to providing decent housing and employment opportunities. Section 11.13 Statutory Authorization On August 24, 1987, the City Council authorized the establishment of the Brooklyn Center Economic Development Authority (Authority). Pursuant to City Council Resolution No. 87 -170, the Authority has and may`exercise all of the powers conferred by law upon a Housing and RedevelopmentAuthority_., The "Authority has been authorized by the City to carry out all powers of and administer all projects initiated by1fie Brooklyn Center HRA. The Authority established Housing Development and Redevelopment Project No 1 pursuant to the EDA Act and the HRA Act. HRA Act authorizes the Authority to exercise all the powers relating to a housing and redevelopment authority granted under Minnesota Statutes, Sections 469.001 to 469.047, or other law. Within the City areas exist where public involvement isnecessa4io cause redevelopment to occur. The Authority has certain statutory powers pursuar tb #ham „1F Act to assist in financing eligible activities related to these redevelopment needs. u A Section ILC Statement.of Objectives" The sampling, the general goals °= and"bbjectives of the Redevelopment Plan are listed below: ■ Tn provide decent safe and"" itary housing for persons of low and moderate income. ■ To provide governmental,assistance to eliminate slum and blight. ■ Tb °provide an ongoing benefit to th residents of the City and those who may frequent the area. ■ To,e 6 nhance the tax base of he City. ■ To provide maximum opportunity, consistent with the needs of the City, for development by private enterpnsa ■ To better utilize vacant or undeveloped land. Section III Tax Increment Financing District Plan for Tax Increment Financing District No. 5 Section III.A Designation of Tax Increment Financing District as a Renewal and Renovation District Renewal and Renovation districts are a type of tax increment financing district in which the following conditions exists: 1) i) parcels comprising at least 70% of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures; ii) 20 percent of the buildings are structurally substandard; and " Springsted Page 2 Economic Development Authority in and for the City of Brooklyn Center iii) 30 percent of the other buildings require substantial renovation or clearance to remove existing conditions such as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety, and general well -being of the community. 2) the conditions described in clause (1) are reasonably distributed throughout the geographic area of the district. For purposes of determining whether a building is structurally substandard, whether parcels are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures, or whether noncontiguous areas qualify, the provisions of subdivision 10, paragraphs (b) through (f), apply. For districts consisting of two more noncontiguous areas, each area must individually qualify under the provisions listed above, as well as the entire area must also qualify as a whole. The TIF District qualifies as a renewal and renovation district in that it meets all o the criteria listed in (1) and (2) above. An executive summary of a report prepared by Alden As"b tes Architectural ,Services that details the ft qualifications is included in Exhibit III. A copy of the entire repo�r�l supporting facts and documentation for this determination is on file with the Authority and is available to the �ic upon request. The full report will be retained by the Authority for the life of the TIF District. "Structurally substandard" is defined as buildings containing de bds or del11►encies in structural elements, essential utilities and facilities, light and ventilation, fire protection (including ';egress),'layout and condition of interior partitions, or similar factors. Generally, a building is ri trugturally substandard, if it is in compliance with the building code applicable to a new building, or could be modifi�fa sat sf� the existing code at a cost of less than 15% of the cost of W' constructing a new structure of the same size anYype A city may not find that a building is structurally substandard without an, interior inspection, unless it can not gain access to the property and there exists evidence whichsupports the structurally substandard finding. Such evidence includes recent fire or police inspections, on -site propertyaax'appraisals or housing inspections, exterior evidence of deterioration, or other similar:. reliable evidehbe. Written ; documentation of the findings and reasons why an interior inspection was not conducted must be mach and retained.' A parcel is deemed to be occupied by a structurally substandard building if the -following conditions are met: (1) the parcel was occupied by a substandard building within three years of the filing of the request for certification of the parcefas part of the district; (2) the demolition or removal ffi esubstandard building was performed or financed by the City, or was performed by a developgr under a,development agreement with the City, (3) tie City found by resolution before such demolition or removal occurred that the building was structurally bst suandard and that the City intended to include the parcel in the TIF district, and (4) the City notifies the county auditor that the original tax capacity of the parcel must be adjusted upon filing the request for certification of the tax capacity of the parcel as part of a district. In the case of (4) above, the County Auditor shall certify the original net tax capacity of the parcel to be the greater of (a) the current tax capacity of the parcel, or (b) a computed tax capacity of the parcel using the estimated market value of the parcel for the year in which the demolition or removal occurred, and the appropriate classification rate(s) for the current year. A parcel is deemed "occupied" if at least 15% of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots; or other similar structures. At least 90 percent of the tax increment from a renewal and renovation district must be used to finance the cost of correcting conditions that allow designation as a redevelopment district. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, i S t I" t fl Page 3 g Economic Development Authority in and for the City of Brooklyn Center pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of land, removal of hazardous substances or remediation necessary to develop the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the Authority may be included in the qualifying costs. Section 111.8 Duration of the TIF District Renewal and Renovation districts may remain in existence 15 years from the date of receipt of the first tax increment. The Authority anticipates that the TIF District will remain in existence the maximum duration allowed by law (projected to be through the year 2028). Modifications of this plan (see Section 111N) shall nct Xtend these limitations. All tax increments from taxes payable in the year the TIF District is decertified shall be ctd the Authority. A r Section 111.0 Property to be Included in the TIF District The TIF District encompasses approximately 60 acres of land located within the Project Area. The TIF District includes the tax parcels identified in the table below and all adjacent and contiguous rights of way. A map of the TIF parcels is included in Exhibit 11. School Parcel ID: District Address Partial Legal Description 02- 118 -21 -32 -0017 #281 1108 Brookdale Cenfe Reg. Land Survey No. 1766, Tract A 02- 118 -21 -32 -0014 #281 1200 Brookdale Center Re . Land Serve No. 1710, Tract B 02- 118 -21 -32 -0009 #281 1265 Brookdale Center >;Z . Land Survey No. 1469, Tract C 02- 118 -21 -32 -0010 #281 1265 Brookdale Center Re°". Land Survey No. 1469, Tract D 02- 118 -21 -32 -0011 #281 1100 Brookdale Center Re Nand Survey No. 1469, Tract E 02- 118 -21 -23 -0021 No address Re .Land Survey No. 1469, Tract A 02- 118 -21 -23 -0023 2$ ..1150 Brookdale Center Re .Land Serve No. 1710, Tract C 02- 118 -21 -31 -0055 286 F 501 County Road No. 10 Reg. Land Survey No. 1614, Tract A Section III.D Property to; be Acquiret i;n "the TIE District , The Authority' acquire, and sell 'an or all of the property located within the TIF District. However, the Authority does not aliicipate acquiring parcels within the TIF District. R. Section 111.E , Specific Development Expected to Occur Within the TIF District The proposed Project will redevelgJ'A[ a Brookdale Mall, excluding the Sears department store, demolishing the three anchors and all b&,120,35 s e all space. Once complete the Project is expected to include a Walmart Supercenter (152,Ofi5gg f , th1eeA nior anchors (122,324 s.f.), six restaurant pads (42,149 s.f.), six retail stores (53,628 s.f.), plus 130,35'1f renovated mall space (total retail space 500,471 s.f.). � The Developer anticipates commencing demolition and site grading around May 1, 2011. The full build out of the site is expected to take three years, as follows: • Walmart and 40,923 s.f. of retail and one junior box of 57,671 s.f. expected to be 100% complete in 2012 and assessed January 2, 2013 for taxes payable 2014; • The renovated 130,355 s.f. in the mail, 12,705 s.f. of retail, two junior boxes of 64,653 s.f. and 24,598 s.f. of restaurant expected to be 100% complete in 2013 and assessed January 2, 2014 for taxes payable 2015; and ■ Remaining two restaurant pads of 17,251 s.f. expected to be 100% complete in 2014 and assessed January 2, 2015 for taxes payable 2016; M r Page 4 pr Economic Development Authority in and for the City of Brooklyn Center Section III.F Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings: (1) The TIF District qualifies as a renewal and renovation district; See Section III.A of this document for the reasons and facts supporting this finding. (2) The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeale future, and the increased market value of the site that could reasonably be expecf , occur without the use of tax increment would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the,proiectecl tax increments for the maximum duration of the TIF District permitted by the TIF Plan, Factual Basis: _F Proposed development not expected to occur The proposed development consists of approximately 500,000 s.f. of retail uses constructed by the Developer, Gatlin Development Company. The Developer has;indicated they will begin construction of the proposed project only if the Authority can provide public assistapce The Developer has demonstrated that current economic conditions make it unfeasible for the project to proceed. Extensive redevelopment costs, including sitermediation and environmental contamination along with extensive street and landscaping costs required by the City cannot be supported by the anticipated project revenues, and given the speculative risk of the extensive =retaiLtenanting required. No higher market value expected. AN This finding is based on the f ait that no othe development of comparable scope to the proposed development is practical without ez same type of assistance described in this plan. The City believes the reinvestment -in this key,sitewill provide for economic growth and redevelopment to the fullest potential, which would & be realized but for the use of tax increment financing. Nei To summarize the basis, for he,t;ify's findings regarding alternative market value, in accordance with Minnesota Statutes, Section 469.17,5, Subd. 3(d), the City makes the following determinations: �k... -a. The City's estimate of the amount by which the market value of the site will increase without the use of tax increment financing is anywhere from $0 to some modest amount based on small scale development that could be possible without assistance; any estimated values would be too speculative to ascertain. b. If the proposed development to be assisted with tax increment occurs in the District, the total increase in market value would be approximately $49,158,660 (See Exhibit IV and VII). C. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $7,533,433 (See Exhibit VII). d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $41,625,227 (the amount in clause b less the amount in clause c) without tax increment assistance. Page 5 Sprtt�gste Economic De veiopment Authority in and for the City of Brooklyn Center (3) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for redevelopment of the TIF District area by private enterprise. Factual basis: The anticipated redevelopment projected by the Developer includes a mix of retail uses and substantial site improvements consistent with the City's design goals. (4) The TIF Plan conforms to general plans for development of the City as a whole. Factual basis: The City Planning Commission has determined that the development proposed in the TIF Plan conforms to the City comprehensive plan. (5) The Authority elects the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, Subdivision 3(b) (see method (b) in Section ill.L). n Section IILG Estimated Public Costs' The estimated public costs of the TIF District are listed below uch costs are eligible for reimbursement from tax increments of the TIF District. Land/Building acquisition $1,000,000 Site improvement/prep costs ,,,:,, 3,300,000 Parking Facilities , p . , Streets and Sidewalks 0 Installation of Public Utilities 0 Loan /Note /Bond Interest Payments' 2,875,000 Administrative expenses 1,184,000 Other Expenditures Bond. Issuance Costs Admin 39,000 Capitalized Interest payments 295,000 EDA Identified Public lm r— Within TIF District 2,434,000 EDA Identified Public lm r— Outside TIF District 1,223,000 Total _ $12,350,000 The Authority reserves the; nght to ,*dministratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost is not increased. Section IILH :Estimated Sources of Revenue T6 Increment revenue* $12,230,000 Interest on invested funds 120,000 Bond proceeds 0 Loan proc eeds 0 Other Revenues 0 Developer Shortfall Payments 0 Total $12,350,000 `Net of State Auditor Deduction The Authority reserves the right to finance any or all public costs of the TIF District using pay -as- you -go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The Authority also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment R I_ Springsted Page Economic De velopment Authority in and for the City of Brooklyn Center income. The Authority anticipates issuing general obligation TIF bonds and executing internal borrowing from allowable general funds of the Authority and/or City to finance a portion the public costs. Section 111.1 Estimated Amount of Bonded Indebtedness The Authority anticipates issuing tax increment bonds to finance a portion of the estimated public costs of the TIF District and to internally loan funds to the TIF District from allowable Authority and /or City funds. The Authority and City reserve the right to issue such bonds in an amount not to exceed $9,000,000 ($8,291,000 for public costs other than administrative expenses and loan /notelbond interest payments plus 10,9). The expected cash flow demonstrating repayment of the bonds is shown in Exhibit VIII. Section III.J Original Net Tax Capacity; The County Auditor shall certify the original net tax capacity of the TIF District. This valu"e" 11 be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue, For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment. year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment'year. The Estimated Market Value of all property within the TIF District as of January" 2, 2010, for taxes payable in 2011, is $12,645,000. Upon establishment of the TIF District it is estimated thattte'original net tax capacity of the TIF District will be $248,210. Each year the County Auditor shall certify the amount that.the original net tax capacity has increased or decreased as a result of (1) changes in the tt?pt status of property, , (2) reductiom nr enlargements of the geographic area of the TIF District; (3) changes due to stipulation, agreements or atements; or Y 4 , chan es in ro 'e O , g p p tty classification rates ,. Section III.K Original Tax Capacity Rate The County Auditor shall also cerd the original tax capacity rate of the TIF District. This rate shall be the sum of all local tax rates that apply to pi n the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years, the arrtp t of erement generated by the TIF District will be calculated using the lesser of (a) the sum of the current local tares at that time or (b) the original tax capacity rate of the TIF District. At the time this document was prepared, the sum of the local tax rates that apply to property in the TIF District, for taxes levied in 2009 and payable in 2010, was all that was available. For purposes of estimating the tax increment generated by the TIF District, this available local tax rate has been used and is shown below. The County Auditor shall certify the rate applicable to the taxes payable year as the original net tax capacity as the original tax capacity rate of the TIF District whenever it becomes available. I Page 7 t'il`t Economic Development Authority in and for the City of Brooklyn Center Tax Rate Payable 2010 Taxing Jurisdiction For parcels located within For parcels located Brooklyn Center SD within Robbinsdale SD City of Brooklyn Center 52.412% 52.412% Hennepin County 42.640% 42.640% ISD #281 ( Robbinsdale) 28.621% NA ISD #286 (Brooklyn Center) NA 1.173% Other 8.219% „ 8.219% Total Tax Rate 131.892% <:_ .154.444% Section 111111 Projected Retained Captured Net Tax Capacity and Projected Tax Increment The Authority anticipates that the building construction for all of.the development will be completed by December 31, 2014, creating a total tax capacity for the TIF District of $1,234fi73 as of January 2, 2015. The captured tax capacity as of that date is estimated to be $635,968 and the first full year of tax Increment is estimated to be $849,827 payable AB in 2016. A complete schedule of estimated tax ment from the TIF District is shown in Exhibit V. 1 �� The estimates shown in this TIF Plan assume thkthe con rrierciaVindustdal class rates remain at 1.50% for the first $150,000 of the estimated market value and 2.0 °I4 for the estimated ,market value above $150,000. The estimates assume no annual increase in market value. ® Each year the County Auditor shall determine the current net tax capacity of " all property in the TIF District. To the extent that this total exceeds the original .net tax capacity, the difference shall be known as the captured net tax capacity of the TIF Distdd,: ' - For communities affected by the" fiscal disparity "provisions of Minnesota Statutes, Chapter 473F and Chapter 276A, the original net tax ,capacity of'tl e y TIF District shall be determined before the application of fiscal disparity. In subsequent dears; the current net tax capacity shall either (a) be determined before the application of fiscal disparity or (b) exclude the product of any fiscal sparity increase in the TIF District (since the original net tax capacity was certified PP ro times the a �fi cal di Tit City elects shall remain the same for the life of P riate P � ratio. The method the the TIF District, except that a single change may be made at any time from method (a) to method (b) above. The Authority elects method (b), or M SiSection 469.177, subdivision 3(b). The County Auditor shall certify to the Authority the amount of captured net tax capacity each year. The Authority may choose to retain' any or all of this amount. It is the Authority's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Exhibit IV gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit V which shows the projected tax increment generated over the anticipated life of the TIF District. Section IILM Use of Tax Increment Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit V shows the projected deduction for this purpose over the anticipated life of the TIF District. Page 8 Sprinstd Economic Deve%pmentAuthority /n and for the City of Brooklyn Center The Authority has determined that it will use .100% of the remaining tax increment generated by the TIF District for any of the following purposes: (1) pay for the estimated public costs of the TIF District (see Section III.G) and County administrative costs associated with the TIF District (see Section III.P); (2) pay principal and interest on tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; a all or a portion of the coup road costs as may be re aired b the County M.S. ( 4 ) p ay P cou Y q Y ty Board under Section 469.175, Subdivision 1a; or (5) return excess tax increments to the County Audi" redistribution to the City, County and School Districts. Tax increments from property located in one county must bee' ended for the direct and primary`benefit of a project located within that county, unless both county boards involved aive 'itiquirement. Tax increments shall not be used to circumvent levy limitations applicable to the City. Tax increment shall not be used to finance the O a construction, renovation, operation, or maintenance of a building to be used primarily and regularly for condtiactr easiness of municipality, county, school district, or any other local unit of government or the State or federal:,governmen #,`orfor a commons area used as a public park, or a facility used for social, recreational, or conference purposes Tlii pt rohibi ion does not apply to the construction or renovation of a parking structure or of a privately owned laciff fot conf' rem (purposes. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of tte assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of, tax increments.` Assistance includes sale of property at less than the cost of acquisition or fair market value;.grants,,'groUnd or, , other leases at less then fair market rent, interest rate subsidies, utility m service connections ds , ria or other similar assistance that would otherwise be paid for by the developer or beneficiary Section',JJL,N Excess Tax Increment In any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the Authority shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds; or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed t to the School District within c th 30 days of such redistribution. Springst d Page 9 Economic Development Authority in and for the City of Brooklyn Center Section 111.0 Tax Increment Pooling and the Five Year Rule At least 80% of the tax increments from the TIF District must be expended on activities within the district or to pay for bonds used to finance the estimated public costs of the TIF District (see Section 111.A for additional restrictions). No more than 20% of the tax increments may be spent on costs outside of the TIF District but within the boundaries of the Project Area, except to pay debt service on credit enhanced bonds. All administrative expenses are considered to have been spent outside of the TIF District. Tax increments are considered to have been spent within the TIF District if such amounts are: (1) actually paid to a third party for activities performed within heF District within five years after certification of the district; (2) used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the five-year period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund. (3) used to make payments or reimbursements to a third party, under binding contracts for activities performed within the TIF District, which were entered into within five years after certification of the district; or (4) used to reimburse a party for payment of eligible costs including interest) incurred within five years from certification of the district. Beginning with the sixth year following certification 'Of the TIF District, at least 8© %of the tax increments must be used to pay outstanding bonds or make c ntfactual payments obligated wathir� the first five years. When outstanding bonds have been defeased and sufficrertt or has been set aside to`''pay for such" contractual obligations, the TIF District a i must be decertified. The Authority anticipates that tax increments will be spentoutside of the TIF District (including a portion for allowable administrative expenses) for TIF- eligible expenditures consistent with the Authority's redevelopment goals. Section IILf Limitation on Administrative Expenses Administrative expenses are defined as all costs of the Authority other than: (1 },. amounts paid forhe purchase of land; (2) amounts paid fcir` aterials and services, including architectural and engineering services directly con ted wttt physical development of the real property in the project; (3) relocatiogeits paid to, or services provided for, persons residing or businesses located in the project; (4) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to section 469.178; or (5) amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clause (1) to (3). Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants, planning or economic development consultants, and actual costs incurred by the County in administering the TIF District. No tax increment may be used to pay any administrative expenses for a project which exceed ten percent of total estimated sp ingste Page 10 Economic Development Authority in and for the City of Brooklyn Center tax increment expenditures authorized by the tax increment financing plan or the total tax increments, as defined in section 469.174, subdivision 25, clause (1), from the district, whichever is less. Section III.Q Limitation on Property Not Subject to Improvements - Four Year Rule If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent street has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The Authority must submit to the ounty Auditor, by February 1 of the fifth year, evidence that the required activity has taken place for each parcehut , TIF District. If a parcel is excluded from the TIF District and the Authority or owner of the = parcel subsequently commences any of the above activities, the Authority shall certify to the County Auditor that such `activity haicommenced and the parcel shall once again be included in the TIF District. The County Auditor #W1 certify the net tax.,capacity of the parcel, as most recently certified by the Commissioner of Revenue, and addi amount to the original net tax capacity of the TIF District. Z Section III.R Estimated Impact on Other Taxing Jurisdictions v Exhibit VI shows the estimated impact on other a' � jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically avable to, the other tazing jurisdictions. The Authority believes that there will be no adverse impact on other taxing j risdrSrt, A- uring the life of the TIF District, since the proposed development would not have occurred without We' establishment -of the TIF' District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax bade. The fiscal and economic implications of the ,proposed tax increment financing district, as pursuant to Minnesota Statutes, Section 469.175 Subdivision 2, ai listed below. 1. The total amount of tax,increment thaf.uuilf be generated over the life of the district is estimated to be $12,273;304 , , 2 The City does not expect to aye noticeable impact to city provided services such as police and fire protection resulting from, the esllshment of the TIF district and the eventual redevelopment of the project site. The City expects 6 -incur public infrastructure costs related to the project and fund those costs directly from the TIF district revenues. The City plans on issuing general obligation tax increment revenue bonds and recognizes that the planned bond issue will not materially impact the City's future ability to issue other debt for general >,ind purposes. 3. The amount of tax increments over the life of the district that would be attributable to the Brooklyn Center school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be $364,768. 4. The amount of tax increments over the life of the district that would be attributable to the Robbinsdale school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be $2,424,449. 5. The amount of tax increments over the life of the district that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same is estimated to be $3,915,924. .g � Page 11 �V Springst d Economic De veiopment Authority in and for the City of Brooklyn Center 6. No additional information has been requested by the county or school districts that would enable it to determine additional costs that will accrue to it due to the development proposed for the district. Section IILS Prior Planned Improvements The Authority shall accompany its request for certification to the County Auditor (or notice of district enlargement), with a listing of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. At the time this document was prepared no building permits had been issued m •the previous 18 months in conjunction with any of the properties within the TIF District Section IILT Development Agreements For certain TIF districts, limitations are placed on properties to \ acquired by the Authority, if purchased with tax increment bond proceeds (to which tax increment from the property is pledged). A renewal and renovation district does not have such restrictions. The Authority anticipates entering into a development agreement to fulfill the redevelopment of the TIF district, and does not anticipate acquiring any property looted within the TIF Distnct Section IILU Assessment Agreements The Authority may, upon entering into a development agreement, also ent01 to an assessment agreement with the developer, which establishes a minimum market value`of the land and improvements for each year during the life of the TIF District. The assessment agreement shall be presented to the County or City Assessor who shall review the plans and specifications for the improvements to be Constructed, review the market value previously assigned to the land, and so long as the. minimum, market value contained in`the assessment agreement appears to be an accurate estimate, me shall certify assessnt agreement .as reasonable. The assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is located. Any modification or premature termination of this agreement' must first be Approved by the City, County and School District. The Authority reserves the right t6 rater into assessment agreements for any portions of the TIF District. )- Section III.) Modifications of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Project Area or the TIF District; increase in the amount of bonded indebtedness to be incurred; increase in the amount of capitalized interest; increase in that portion of the captured net tax capacity to be retained by the Authority; increase in the total estimated public costs; or designation of additional property to be acquired by the Authority shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: (1) the only modification is elimination of parcels from the TIF District; and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity, or the City agrees that the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. Springsted Page 12 Economic Development Authority in and for the City of Brooklyn Center The Authority must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section III.W Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the Authority shall submit a copy of such plan to the Minnesota Department of Revenue. The Authority shall also request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the 4"rity shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the IF Pland a listing of any prior planned improvements. The Authority shall also send the County Assessor any assessment agreement establishing the minimum market value of land and improvements in the TIF District, and' a' request that the County Assessor review and certify this assessment agreement as reasonable. w The County shall distribute to the Authority the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained capture net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by' the TIF Plan, other development, inflation of property values, or changes in property classification ( s or formulas. In `administering and implementing the TIF Plan, the following actions should occur on an annual basis: (1) prior to July 1, the Authority shall notify the County Assessor of any new development that has occurred in the TIF District during the past year to insure that the new value will be recorded in a timely manner. (2) if the County Auditor receives the request for c6t&6 ion of a new TIF District, or for modification of an existing T!f~j�t, before July 1, the request shall be,recognized in determining local tax rates for the currerC nd s ubsequent levy years: Requests received on or after July 1 shall be used to determiri'Af I tax rates`] subsequentyears. (3) each year the County Auditor, shall certifyAthe amount of the original net tax capacity of the TIF District. The.amount certified dial! �iefiect a ty changes that occur as a result of the following: (a) the value of property that changes from tax - exempt to taxable shall be added to the original net tak°capacity of the TIF District. The reverse shall also apply; (b) the original net tax capacity may be modified by any approved enlargement or reduction of the TIF;Dstrict; (c) if laws oemin the classification of real roe cause changes to the percentage of 9 property riY 9 p 9 estir ed market value to be applied for property tax purposes, then the resulting increase degrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District. The County Auditor shall notify the Authority of all changes made to the original net tax capacity of the TIF District. Section 11111 Filing TIF Plan, Financial Reporting and Disclosure Requirements The Authority will file the TIF Plan and any subsequent amendments thereto, with the Commissioner of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes, Section 469.175, subdivision 4A. The Authority will comply with all reporting requirements for the TIF District under Minnesota Statutes, Section 469.175, subdivisions 5 and 6. i Springsted Page 13 i Exhibit MAP OF TAX INCREMENT FINANCING DISTRICT NO. 5 (SHINGLE CREEK CROSSING) AND Housing Development and Redevelopment Project No. 01 Project Areas 1 E u a L h 1f; I Ll L - � � � yam. ��� �srr.��' -• � �f � iYY -�. t, V V 71 J LOCAL MEEI -J- Z A"E T7 k o� Legend Project Area BoufidarY TIF 5 Parcels Page 14 Springsted Exhibit 11 MAP OF Tax Increment Financing District Ito, 5 Shingle Creek Crossing Town Center P.U.D. . ION AVR Aw F _ :tent n y WM 4A v 53M AV" / t t TIFS 3 S�TF'f ik!�fl dt rr`l 1 �' � 61YtPt X+� YV ,�f> ,.. /gC" f XM ER : eas sx a� Spri gstet Page 15 Exhibit 111 EXECUTIVE SUMMARY OF FINDINGS RENEWAL AND RENOVATION ELIGIBILITY ASSESSMENT PROPOSED BROOKDALE TIF DISTRICT Pu rpose Alden Associates Architectural Services was hired by the city of Brooklyn Center to survey and evaluate the properties within the proposed Brookdale Tax Increment Financing (TIF) District. The proposed district is bordered on the north by County Road 10 to the north, Highway 100 to the east and south, and Xerxes Avenue N to the west. The purpose of our work was to independently ascertain whether the qualification tests for tax increment eligibility, as required under Minnesota Statute, could be met. The findings and conclusions drawn herein are solely for the purposq.,oila x increment eligibility and are not intended to be used outside the scope of this assessment. Scope of Work The proposed district consists of 8 parcels comprised of the following types of improvements: 4 commercial structures on 5 parcels, and 4 parcels with paging improvements. Evaluations Interior inspections were completed for all 4 buildings. An'exteri ©r inspection was also completed for all buildings. Findings Coverage Test — In the prop ��T� District, all of the parcels "met the coverage test with a 88.5% area coverage. This exceeds th a 'ate "verage requirement. Condition of Building " — 25 pecent of the buildings — 1 of the 4 buildings were found to be structurally substandard and 1 of ,the remaining=---3 buildings were found to require substantial renovation or clearance" considering code defi encies and other deficiencies of sufficient total significance to justify substantial Ken6vation or clearance (see definition of "structurally substandard" and an "substantial. renovation or clearce'' as follows). This meets the Condition of Buildings Test whereby at least 20% .of buildings, not including outbuildings, must be found "structurally substandard and 30% of the other buildings require .substantial renovation or clearance ", to remove existing conditions, such as: inadequate street layout, in' patible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified, hazards to the lath, safely and general wellbeing of the community. Conclusion Our surveying and e aluatu, _f of the properties within this proposed Renewal and Renovation District render results that in our r essional opinion qualify the district eligible under the statutory criteria and P 9 Y g rY formulas for a Renewal and Renovation Tax Increment Financing District (State Statute 469.174 Subd. 10 and l0a). Springsted Page 16 i Exhibit IV Assumptions Report N N City of Brooklyn Center, Minnesota Tax Increment Financing District (Renewal & Renovation) Brookdale Mall Redevelopment Project (Shingle Creek Crossing) TIF Plan Scenario - R &R District - $61.8M EMV - 3 year build -out Type of Tax Increment Financing District Renewal & Renovation Maximum Duration of TIF District 15 years from 1st increment_.. �l y .. Projected Certification Request Date 07130/11 Decertification Date 12/31/28 (6 gears of Increment) 2011/2012 Base Estimated Market Value $12,645,000 Original Net Tax Capacity $248,210 Assessment/Collection Year 2011/2012 2012/2013,. 2013/2014 2014/2015 2015/2016 Base Estimated Market Value $12,645,000 $12,645 $12,645,000 $12,645,000 $12,645,000 Increase in Estimated Market Value 0 789,361 :: 26,319,311 43,454,585 49,158,660 Total Estimated Market Value 12,645 OAO 13, 361 , 38 964;311 56,099,585 61,803,660 Total Net Tax Capacity ` _. $248 $267 _ •- $777,786 $1,120,492 $1,234,573 City of Brooklyn Center 52.412% 52.412% Hennepin County ` 42.640% 42.640% School District 28.621% 51.173% ISD #286 Other ;� °'8.219% 8.219% Local Tax Capacity Rate 131.892% 154.444% 2009/2010 < ISD #281 ISD #286 Fiscal Disparities Contribution From TIF District 35.5239% Administrative Retainage Percent {maximum = 1U ° lo} 10.00% Pooling Percent, 10.00% I Notes Projections assume no futnr'e,chatlges 16 tax rates or tax capacity classification rates or market values. Current base parcel value information as provided by Hennepin County. Development scope and buildout timeline provided by Developer. 3 -year timeline. Projected future market value provided by the City. I 1 0 I� Sp ringsted Page 17 0 Abit V Projected Tax Increment Report City of Brooklyn Center, Minnesota Tax Increment Financing District (Renewal & Renovation) Brookdale Mall Redevelopment Project (Shingle Creek Crossing) P J 9 9 TIF Plan Scenario - R &R District - $61.8M EMV - 3 year tauild -out By Taxing District,, Taxing District 2148 Taxing" =District 2149 Less: Less: Retained Times: 2148 Less: Less:' Retained Times: 2149 Annual Total Original Fiscal Captured Tax Annual Total Original Fiscal Captured Tax Annual Period Net Tax Net Tax Disp. @ Net Tax Capacity,-- Gross Tax Net'Tax Net Tax Disp. @ Net Tax Capacity Gross Tax Ending Capacity Capacity 35.5239% Capacity Rate Increment GapaGity Capacity 35.5239% Capacity Rate Increment (1) (2) (3) (4) (5) (6) (7)'' (8} ~; (9) (10) (11) (12) (13) 12/31/11 232,480 232,480 0 0 131.892% 0 15,736P 15,730 0 0 154.444% 0 12/31/12 232,480 232,480 0 0 131.892% 0 15,730' 15,730 0 0 154.444% 0 12/31/13 251,457 232,480 6,741 12,236 131,892% ; 16,139 15,730 15,730 0 0 154.444% 0 12/31/14 719,040 232,480 172,845 313,715 131.$92% 413,765 58,746 15,730 15,281 27,735 154.444% 42,836 12/31/15 1,028,867 232,480 282,908 513,479 131,89?% 677,237 91,625 15,730 26,961 48,934 154.444% 75,576 12/31/16 1,142,948 232,480 323,434 587 131' % 774,251 91,625 15,730 26,961 48,934 154.444% 75,576 12/31/17 1,142,948 232,480 323,434 '`587,034 13.1,86% 774 251 91,625 15,730 26,961 48,934 154.444% 75,576 12/31/18 1,142,948 232,480 323,434 587,034 131,8 774261, 91,625 15,730 26,961 48,934 154.444% 75,576 12/31/19 1,142,948 232,480 323,434 587;034, 131: % ° 774,251 91,625 15,730 26,961 48,934 154.444/0 75,576 12/31/20 1,142,948 232,480. 323',441,,, 587,034 •; 131.892% 774,251 91,625 15,730 26,961 48,934 154.444% 75,576 12/31/21 1,142,948 232,480,'; 323,434 s; ', -587,034 ='`131.892% 774,251 91,625 15,730 26,961 48,934 154.444% 75,576 12/31/22 1,142,948 234480 323,434 ";;.58.7,034 131:892% 774,251 91,625 15,730 26,961 48,934 154.444% 75,576 12/31/23 1,142,948 232,4$0 323,434 587:;034 131892% 774,251 91,625 15,730 26,961 48,934 154.444% 75,576 12/31/24 1,142,948 232;480 323,434 587,034^ 131.892% 774,251 91,625 15,730 26,961 48,934 154.444% 75,576 12/31/25 1,142,948 232,480'=- -,, ,323,434 587,034-:z 131.892 774,251 91,625 15,730 26,961 48,934 154.444% 75,576 12/31126 1,142,948 232,480 323,434 587,034' 131.892% 774,251 91,625 15,730 26,961 48,934 154.444% 75,576 12/31/27 1,142,948 232,480 323,434 587,034 131.892% 774,251 91,625 15,730 26,961 48,934 154.444% 75,576 12/31/28 1,142,948 232,480 323,434 587,034 x 131.892% 774,251 91,625 15,730 26,961 48,934 154.444% 75,576 12131/29 0 0 0 , 0 131.892%1 0 1 0 0 0 0 154.444% 0 $11,172,404 $1,100, 900 K Page 18 SI - SC' AR Exhibit V Projected Tax Increment Report City of Brooklyn Center, Minnesota Tax Increment Financing District (Renewal & Renovation) Brookdale Mail Redevelopment Project (Shingle -reek Crossing) TIF Plan Scenario - R &R District- $61.8M EM� year build -out Less: Less: Retained `fiotal Less: Less: Annual Total Original Fiscal Captured Annual State Aud." Adm. /Pooling Annual Period Net Tax Net Tax Disp. @ Net Tax - Gross Tax Deduction Retainage Net Ending Capacity Capacity 35.5239% Capacity Incremetf 0.360% 20.00% Revenue (1) (14) (15) (16) (17) ( &) (19) (20) (21) 12/31/11 248,210 248,210 0 0 0 0 0 0 12/31/12 248,210 248,210 p` '0, 0 0 0 0 12/31/13 267,187 248,210 6,741 12,236 16,139 58 3,216 12,865 12/31/14 777,786 248,210 188,126 341 ",450 456,601 1,644 90,991 363,966 a , 12/31/15 1,120,492 248,210 809,;869 562,4.13 52 813 2,710 150,021 600,082 12/31/16 1,234,573 248,21 395 635,968 -. ' 849,827 3,059 169,354 677,414 12/31/17 1,234,573 248,210:, 350,399 635,968;" 849,827 3,059 169,354 677,414 12/31/18 1,234,573 248,21Q 350,395 635,968 +:., 849,827 3,059 169,354 677,414 12/31/19 1,234,573 248,210; " 350,895 635,968 849,827 3,059 169,354 677,414 12/31/20 1,234,573 248,210 w 350,:895 �6 068 849,827 3,059 169,354 677,414 12/31/21 1,234,578 k , 248,210 350,395 635,968 849,827 3,059 169,354 677,414 12/31/22 1,234,573 248,210 350,895 635,968 849,827 3,059 169,354 677,414 12/31/23 1,234;573 248,210 350,395 635,968 849,827 3,059 169,354 677,414 12/31/24 1,234`;573 248,210 °350,395 G °`' 635,968 849,827 3,059 169,354 677,414 12/31/25 1,234,573` 248,210 35,0,395 635,968 849,827 3,059 169,354 677,414 12/31/26 1,234,573 248,210 350,395 635,968 849,827 3,059 169,354 677,414 12/31/27 1,234,573 248 '350,395 635,968 849,827 3,059 169,354 677,414 12/31128 1,234,573 248,21 4 350,395 635,968 849,827 3,059 169,354 677,414 12/31/29 0 b.. 0 0 0 0 0 0 $12,273,304 $44,179 $2,445,830 $9,783,295 1"5'1 Page 19 0 Ait VI Estimated Impact on Other Taxing Jurisdictions Report City of Brooklyn Center, Minnesota Tax Increment Financing District (Renewal & Renovation) Brookdale Mall Redevelopment Project (Shingle Creek Crossing) TIF Plan Scenario - R &R District - $61.8M EMV - 3 year build -out Without Project or TIF District With Proiectand:TIF District Projected Hypothetical 2009/2010 2009/2010 Retained New Hypothetical Hypothetical Tax Generated Taxable 2009/2010, Taxable �Gaptured Taxable Adjusted Decrease In by Retained Taxing Net Tax Local Net Tax Net Tax ,•" Net Tax Local Local Captured Jurisdiction Capacity (1) Tax Rate Capacity (1) + Capacity':, r = Capacity Tax Rate ( *) Tax Rate ( *) N.T.C. ( ) City of Brooklyn Center 17,960,128 52.412% 17 960;12$> $635,968 18,596,096 50.620% 1.792% 321,924 i Hennepin County 1,439,645,193 42.640 ° l0 1,439;645,193 $635,968 1 440,281,161 42.621% 0.019% 271,057 ISD #281 (Robbinsdale) 88,612,938 28,621% 88,612,938 $587,034 89,199,972 28.433% 0.188% 166,909 ISD #286 (Brooklyn Center) 5,691,835 '` 51.173% 5,691,835 $48,934 5,740,769 50.737% 0.436% 24,828 Other (2) — 8.219% z,.. $635,968 — 8.219% — — �G Totals ISD #2$.1 131 892 %� 129.892% 2.000% ISD #2138 154.444 ° o':• , 152.197% 2.247% * Statement 1: If the projected Retained Captured NeYTax Capacity of the T1F District was hypothetically avaiiable to each of the taxing jurisdictions above the result would be a lower local tax rate (see Hypothetical Adjusted Tax Rate above) which would produce the same • amount of taxes for each taxing jurisdiction. In such a case, the total local tax rate would decf'ae by 2.000% (see (Hypothetical Decrease in Local Tax Rate above). The hypothetical tax that the Retained Califiuted Tax Cap' acit'y of the TIF District would generate is also shown above. Statement 2: Since the projected Retained Captured Net Tax Capacity of the TIF District is not available to the taxing jurisdictions, then there is no impacton -taxes levied or local tax rates. (1) Taxable net tax capacity = total net tax capacity - captured TIF - fiscal disparity contribution, if applicable. (2) The impact on these taxing jurisdictions is negligible since they represent only 6.23% of the total tax rate. Page 20 . Spr 9 i Exhibit Vll Market Value Analysis Report City of Brooklyn Center, Minnesota Tax Increment Financing District (Renewal & Renovation) Brookdale Mall Redevelopment Project (Shingle Creek Crossing) TIF Plan Scenario - R &R District - $61.8M EMV - 3 year.buld -out Assumptions Present Value Date =07130111 P.V. Rate - Gross T. I. 00% Increase in EMV With TIF District $49,158,66f Less; P.V of Gross Tax Increment 7,533,433 Subtotal $41,625,227 Less: Increase in EMV Without TIF 0 Difference $41,625,227 Annual ",Present Gross TaSc Value @ Year Increment" 5.00% t 1 2013 16,139 14,518 2 2014 456,601 391,182 3 2015 752,813 614,242 4 2016"" 849,827 660,380 5 2017 849,827 628,933 6 2018 849,827 598,984 7 2019 849,827 570,461 8 2020 849,827 543,296 9 2021 849,827 517,425 0, 2022 849,827 492,785 11 2023 849,827 469,319 :,.2 2024 849,827 446,971 13 2025 849,827 425,687 14 2026 849,827 405,416 15 2027 849,827 386,110 16 2028 849,827 367,724 $12,273,304 $7,533,433 at Springsted Page 21 0 Exhib011 Shingle Creek Crossing TIF District Projected TIF District Cash Flow and Bond Repayment REVENUE Annual Calendar Projected Tax Admin Exp Pooled Exp Projected Net Debt Service GO TIF Bonds Projected Interfund Loan Repayments Reimb Other Surplus/ Year Ending Increment (TI) 10% TI 10% TI Principal Interest Total P &I Principal Interest Total P &I indistrict Ex (Deficit) (1) (2) 3 4) 5) (6 ) (7) (8) (9) (10) (11) (12 12/31/2011 - - - - - - - 12131/2012 - - - - 1213112013 16,081 1,608 1,608 - 12,865 - 12/31/2014 454,957 45,496 45,496 135,000 126,194> 261,194 56,000 56,000 46,772 - 12/31/2015 750,103 75,010 75,010 135,000 122,954 257,954 200,000 200,000 142,129 - 12/31/2016 846,768 84,677 84,677 140,000 119,174, 259,174 15,778 184,222 200,000 218,241 - 12/31/2017 846,768 84,677 84,677 145,000 114,484' 259,484 !' 121,837 78,163 200,000: 217,931 - 12/31/2018 846,768 84,677 84,677 150,000 169,264 259,264 126,760 73,240 200,000 218,151 12/31/2019 846,768 84,677 84,677 155,000 103,264 258,264 131,881 68,119 200,000' 219,151 12/3112020 846,768 84,677 84,677 165,000 96,676 261,676 137,209 62,791 200,000 215,738 - 12/31/2021 846,768 84,677 84,677 170,000 89,251 259,251 142,752 57,248 200,000 218,163 - 12/31/2022 - - - - - -- 846,768 - - - - - -- 84,677 ----- - - - - -- 84_677 - 180 81 - - - - -_ 261,176 - - - - - -- 148 ---- -- - 519_ __ -A 51,481 200 000- 216,238 - --- -- ---- -- - - - - - ------ -- --- - --- -- --- --- -- ------ - -- ----- ------ - ---- ----- -- --- --- ----- �- -- 12/31/2023 846,768 84,677 84,677 190,000 72,176 262,176 154,519 45,481 200,000' 215,238 - 12/31/2024 846,768 84,677 84,677 195,000 62,201 257,201 160,762 39,238 200,000 ` 220,213 - 12131/2025 846,768 84,677 84,677° 210,000 51,720 261,720 167,257 32,743 200,000' 215,694 - 12/31/2026 846,768 84,677 84;677 220,000 40,170 260,170 ! 224,514 25,486 250,000 57,477 109,767 12/31/2027 846,768 84,677 84,677;. 230,000 27,795 257,795 233,584 16,416 250;000; 169,619 12/31/2028 846,768 84,677 84,677 245,000 14,455 259,455 ` 234,629 6,979 241,608 176,352 12,229,125 1,222,913 1,22 2,665,000 1! 3,895,954 2,000,000 997,608 2,997,608 ` 2,434,000 455,738 (2) Projected Tax Increment revenue is net of State Auditor deduciion`of 0.36% (3) Administrative Expenditure is 10% of annual revenue;itt column (2). (4) Pooled Expenditure is 10% of annual revenue in colunln (2) (5) Projected GO Bonds issued ,for $2, 665, 000 to produce $2 M for site improvementprep costs, balance includes capitalized interest, underwriter discount and costs of issuance (6) Net debt service does not include Interest paid with bond proceeds (capitalized) (7) Total net debt service adds (5) & (6) "' (8), (9), (10) -Anticipated repayment to City {Authority forinterfund loan of $2, 000,000 for land acquisition /site improvement/prep costs, assumed interest rate is 4% (11) The TIF Plan authorizes $2.434M of additionat expenditures. (12) The annual surplus/(deficit) subtracts totals in columns (3), (4), (7), (10) and (11) from the TI Revenue in column (2) If expenditures in col. (4) & (11) do not occur & revenue/debt occur as projected, the district could close in year underlined (2022), 6 years prior to statutory decertification The available funds in the district would be able to prepay both the GO TIF Bonds and Interfund Loan Repayments Spt Page 22 I COUNCIL ITEM MEMORANDUM DATE: February 8, 2011 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business and Development SUBJECT: Resolution Calling for a Public Hearing on a Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1, Establishment of Tax Increment Financing District No. 5, and the adoption of a Tax Increment Financing Plan Therefore Recommendation: It is recommended that the City Council consider approval/adoption of the Resolution Calling for a Public Hearing on a Modification to the Redevelopment Plan for Housing Development and Redevelopment Project No. 1, Establishment of Tax Increment Financing District No. 5, and the adoption of a Tax Increment Financing Plan Therefore. Background: At the January 24, 2011 Work Session, the City Council received the following updates and information on the proposed redevelopment of the Brookdale properties: • Developer Frank Gatlin re- introduced the development concept and vision of Shingle Creek Crossings to re- establish the commercial presence of this property through the development of a Town Center development that would include a major anchor, two or three junior retail boxes, the renovation of a portion of the mall, several smaller retail buildings and restaurants, and streetscaping that creates the Town Center look. The proposal includes day - lighting of Shingle Creek and is expected to be a catalyst for the rebranding of the city and spurring on development of neighboring properties. He indicated that costs associated with the demolition, soil corrections, environmental issues, and the current market conditions required him to seek economic assistance for the portions of the project that were not related to the proposed major anchor, Walmart. • The city's financial consultant provided a presentation on their financial gap analysis and conclusion that the proposed project would need some level of public assistance to proceed given the speculative nature of the retail market and marginal return without assistance. • City staff presented the three components making up a potential financial assistance project: Mission: Ensuring an attractive, clean, safe community that enhances the qualio of life and preserves the public trust i COUNCIL ITEM MEMORANDUM 1. $3.3 million for public purpose costs, exclusive of Walmart related costs, to ensure the timely redevelopment of the site and completion of the features prioritized by the EDA. 2. A collateralized $1 million forgivable loan having a term of five years with an interest rate of six percent to provide an incentive for the full project completion in a reasonable time period. The loan amount would be available upon the execution of the Tax Increment Development Agreement and would limit the use of these funds to eligible public purpose costs and acquisitions, exclusive of Walmart related costs. 3. The conditions for sale of the EDA's 1.06 acre lot (former Ground Round Restaurant site) and inclusion to the Shingle Creek Crossing PUD. The consensus of the City Council was to move forward with the framework as presented. Attached for your reference is a copy of the minutes of this Work Session item and a letter to the developer which outlines the framework of the proposed economic assistance package. Proposed Tax Increment Finance District No. 5 (A Renewal and Renovation District). The proposed tax increment financing plan would establish a new Renewal and Renovation District for the eight Brookdale parcels included in the demolition and redevelopment plans for the Shingle Creek Crossing project. They include the following properties: -The Mall and in -line tenants parcel. -The Mervyn's parcel. - The Penney's and Penney's auto parcels. - The Macy's parcel and eastern parking lot. -The parcel for the vacant lot (previously DQ Chill and Grill). -A small outlot for the Northway entrance. (Note: The Brookdale properties of Applebee's and Kohl's are not included in this district.) above properties were inspected b a consultant retained b the City The bo p p p y Y Y and determined to meet the qualifications for the creation of this 16 year tax increment district. The financing plan includes a budget that will finance the proposed economic assistance package with bond repayments from the tax increment received from the initial development of Walmart and the mall renovation and repayment of the TIF 2 inter -fund loan from the balance of the planned commercial development. The budget also includes the opportunity for the EDA to use increment from the balance of the development for public improvements within the district (potential of $2.4 million) and for EDA projects outside of the district (potential of $1.2 million). A fission: Ensuring an attractive, clean, safe com a pity that enhances the duality of life and preserves the ptchlic trust COUNCIL ITEM MEMORANDUM This opportunity is an option available to the EDA during the first five years of the district. Should the EDA choose not to pursue it, the total increment would be applied to the repayment of the economic assistance package and administrative fees and result in the early retirement of the debt and decertification of the district. Attached is a copy of a draft plan, proposed schedule and resolution setting a public hearing for 28 2011. This resolution also authorizes distribution of the plan to the school districts March p and Hennepin County. A Work Session will be scheduled for the February 28, 2011, City Council meeting, at which time the City's financial consultant will provide a presentation of the plan and answer Council questions. Budget Issues: The City and all tax jurisdictions will retain the 2011 base value of the eight Brookdale parcels during the life of the district and will receive the full property valuations upon the decertification of the District. This redevelopment project has the potential to promote significant private investment into the City's Central Commerce Area and expand the city commercial tax base. The financial effects associated with the creation of a new tax increment district are included on Exhibits IV and V of the Financing Plan and will be presented in detail at the February 28 Council Work Session. Council Goals: Strategic: 2. We will aggressively proceed with implementation of City's redevelopment plans Ongoing 5. We will improve the image of the City with citizens and others I .Mission. Ensuring an attractive, clean, sal commuul y that enhances the alualhtr of life and preserves the public trust safe ty I MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER C IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA WORK SESSION JANUARY 24, 2 . 011 CITY HALL — COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work Session called to order by Mayor/President Tim Willson at 8:25 p.m. ROLL CALL Mayor/President Tim Willson and Councilmembers/Commissioners Carol Kleven, Kay Lasman, Tim Roche, and Dan Ryan. Also present were City Manager Curt Boganey, Director of Business and Development Gary Eitel, Assistant City Manager/Director of Building & Community Standards Viclde Schleuning, Police Chief Kevin Benner, City Attorney Charlie LeFevere, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. STERLING SQUARE RENTAL LICENSE REVOCATION UPDATE City Manager Curt Boganey introduced the item, discussed the history, and requested Council C direction. Mayor/President Willson stated the property owner of Sterling Square had been adamant about revocation reconsideration; however, there is nothing in staff s report that would incline him to reconsider revocation at this point. Councilmember /Commissioner Ryan stated he had found a full one -year revocation to be excessive in this case and would support reconsideration of the revocation. He suggested revocation guidelines be established based on the term taxes and utilities remain in delinquency to assure consistency and avoid arbitrary action. The majority consensus of the City Council was to not reconsider revocation of the Sterling Square Apartments rental license JOINT MEETING WITH COMMISSIONS Following discussion, the consensus of the City Council was to direct staff to .schedule a joint meeting with Coin missions on Apr4 6, 2011, 6 -8 p.m., and to follow the same agenda format. SHINGLE CREEK CROSSING 01/24/11 -1- DRAFT Mr. Bo ganey introduced the item, discussed the history, and explained the three considerations before the Council related to Shingle Creek Crossing to receive a project update by Mr. Gatlin, an overview on the potential for financial assistance by Ms. Wolfe, and update by staff regarding its negotiation with the developer. Staff would then request Council provide comment and direction. Frank Gatlin, Gatlin Development, thanked the Council for the opportunity to present their plans and for the great work of City stafE He described his work on this project for the past two years to acquire the property and reach agreement with Wahnart to provide the "bones and structure" for a great redevelopment. Mr. Gatlin reviewed his development experience, past projects, and described his vision for Shingle Creek Crossing to be a great success, stating it will be his "crown jewel." Mr. Gatlin displayed exterior site elevations, noting the site has great location with visibility from all directions. He reviewed his investigation to uncover every possible problem that could come forward with this project and intent to make Shingle Creek a focal point and desirable pedestrian - friendly area with restaurants alongside. Mr. Gatlin then addressed financing, noting this is the first time in 15 years he has requested assistance, which he does not like to do, and has worked with staff to develop the minimum request - that will work. It was clarified that Walmart is not requesting any assistance. He advised that Gatlin Development is one of the most successful developers in the country and never failed in a development. However, he will have difficulty attracting desired tenants until the project moves forward and Brookdale Mall is demolished. Mr. Gatlin stated construction will start as soon as possible, once approved, noting this will be the fast project out of ground in i the last three years. He assured the Council this will be a beautiful development, one the City can be proud of, and a catalyst for rebranding the City and spurring on development of - neighboring paicels. Jenny Wolfe, Senior Project Manager with Springsted Incorporated, the ' City's financial consultant, presented the Shingle Creek Crossing financing gap analysis that was conducted in reaction to a request for $10 million in TIF assistance. It was noted the project's cost was over $100. million and the developer would cover $51 million. Ms. Wolfe presented the projected rate of return and conclusion the proposed project would need some level of public assistance to proceed given the speculative nature of the retail and marginal return without assistance. The proposed TIF district supports $7 million of assistance, resulting in a return of 11.95 %, which exceeds 11.5% as a reasonable minimum return. Mr. Boganey noted the projections are based on assumptions that everything will fall into place within three years; however, that rarely occurs. The assistance is intended to share some of the risk that everything may not be built out as planned in three years or to the level assumed and anticipated. It will be used to share some upfront costs for items (daylighting of Shingle Creek, landscape, streetscape, creating a Town Square concept, etc.) the City wants to assure are completed the beginning of the project, not later when the project starts to make revenue. Director of Business and Development Gary Eitel presented the three components making up the framework for a financial assistance package as follows: 1. EDA provides $3.3 million for public purpose costs to ensure the timely redevelopment of the site and completion of the 01/24/11 -2- DRAFT features rioritized b the EDA• 2. A collateralized forgivable P Y � ed $1 million loan having a term of five years with an interest rate of b% (City's CIP assessment rate). The loan amount will be �. available upon the execution of the Tax Increment Development Agreement which will limit the use of these funds to eligible public purpose costs and acquisitions, exclusive of Walmart related costs; and, 3. The EDA's lot will be included in the development of Shingle Creek Crossing PUD using the formula detailed in staffs report Mr. Eitel listed the benefits the City would receive for an investment of $4.5 million that would create new development energy as far as the 57 and Logan EDA site. He explained the details of this framework will be negotiated in a development agreement through the City Attorney and conclude with the creation of a new TIF district and implementation. Mayor /President Willson stated that he is not shy about using TIF but believed the City needed to be prudent to assure increment is available to pay back TER He welcomed the opportunity to work with Mr. Gatlin to bring this project into Brooklyn Center. Mayor/President Willson stated he supports proceeding with the framework as outlined by Mr. Eitel and getting into the detail of the development agreement. Mr. Boganey stated if the Council reaches consensus regarding the general framework, staff will develop a specific development agreement that the Council/EDA will consider at a future meeting. Councihnember /Commissioner Roche noted that Brookdale Mall is the second oldest enclosed mall in the country. He stated that Walmart is going under a radical rebranding effort, as is C Brooklyn Center and Shingle Creek Crossing will help in that effort He indicated he supported the terms of the framework and raised several design elements he would like considered including the daylighting of Shingle Creek and iconic building lighting to attract customers. He also suggested that the 12 stall parking area by Sears be reconfigured. Mr. Gatlin assured the Council they will work diligently with City staff to create the best design possible during the permitting, planning, and approval process that gives the Council the assurance's they are looking. He asked the Council to keep in mind that Walmart is only 20% of this development so there will be many new shops. W. Gatlin stated he owns the Macy's building and described the potential ownership arrangements with the other buildings that would allow flexibility to attract desirable tenants. He presented an option that will be considered to use the building adjacent to Sears to create an interior climate- controlled corridor, a mall component. Councilmember /Commissioner Lasman asked staff to consider measurable performance benchmarks for TIF. Mr. Boganey stated those details will be spelled out in the assistance agreement. He noted the Council has a lot of influence through the PUD process to address details to be included. Councilmember /Commissioner Lasman stated it.sounds like Mr. Gatlin is anxious to get started and she would like to see a standards and timeline that identifies dates when things will happen. 01/24111 -3= DRAFT I& Gatlin gave credit to City staff for developing this TIF t and $1 million incentivized P g concept forgivable loan. He indicated he supports this plan, which is less than one -half the $10 million he had requested for this $100 million project. Mr. Gatlin estimated that Shingle Creek Crossing will result in producing millions more dollars for the City and this plan gives him incentive to complete the project quickly to meet the thresholds in Phase 1 to receive assistance. Councilmember /Commissioner Ryan stated he appreciates hearing that Walmart will "carry its own freight" because otherwise the community would question giving assistance to the richest company in the world. He stated he appreciates how challenging the market is today and supports the framework that will provide needed capital - up front. Councilmember /Commissioner Ryan stated he looks forward to the process moving forward and appreciates the comments from a third party to evaluate the financials.. Mr.. Gatlin.commented on the effort of Walmart to change its image and advised of its generosity in making donations to the community. He stated he is appreciative of the Council's support and will perform if the project is approved. f Mr. Gatlin commented on the perfect timing for this project since they intend to open the first store in 2012, the 50 year anniversary of the Brookdale Mall opening. He stated they plan to schedule a ground breaking in May complete with a wrecking ball and big ceremony. He commented on the generosity of Walmart to become involved in the community and stated they will be looking for places to make donations. CouncilmemberlCommissioner .Lasman suggested they consider the Centennial Park bandshell that the Centennial Committee is working to erect. Councilmember /Commissioner Kleven indicated she is excited about this project and appreciates the work of staff and Mr. Gatlin. The consensus of the City Council was to move forward with the framework as presented. ADJOURNMZNT Councilmember /Commissioner Lasmau moved and Councilmember /Commissioner Ryan seconded adjournment of the City Council/Economic Development Authority Work Session at 9:45 p.m. Motion passed unanimously. 01/24/11 -4- DRAFT X City of Brooklyn Center A Millennium Community February 1, 2011 Gatlin Development Company Atta: Frank Gatlin 101 S. Main Street Dickson, TN 37055 Re: Gatlin Development Company, Ine. Shingle Creek Crossing ("SCC") Redevelopment Public Assistance Request The purpose of this letter is to confirm the understanding reached during our meeting on January 20, 2011. Subject to a public hearing and as otherwise permitted bylaw, EDA Staff will negotiate with Gatlin for a development agreement with the EDA, the terms of which will be generally consistent with the following. 1. $3.3 Million.of "Up Front:' Tax Increment Financing Subject to the City's. ability to sell taxable tax increment revenue bonds in a principal amount equal to approximately $2,500,000, the EDA will provide "upfront" TIF to reimburse Gatlin Development Company, Inc. or a new entity to be created by Gatlin for purposes of this Development (the "Developer') for $3.3 million of costs Gatlin actually incurs to pay for TTF eligible expenses to be mutually agreed upon by the EDA and the Developer as necessary to reasonably ensure that the sum of the eligible expenses will total $3.3 million. The EDA will agree to disburse the funds to Developer upon the Developer's providing the EDA with satisfactory evidence that the reimbursable work has been completed and the Developer has completed (i) the day- lighting of Shingle Creek; (ii) street construction/landscaping within the project to achieve a "Town Center" look,. consistent with the proposed SCC site plan; (iii) design and construction of the storm water detention and/or retention areas, consistent. with the proposed SCC site plan; and (iv) ` reWnning" the exterior of the remaining portions of the existing mall. The EDA will provide this it financing without requiring an assessment agreement or increment guaranty from Walmart Parcel. Developer will provide a letter of credit from a bank acceptable to the EDA, in the amount of $2,500,000 (or such amount as is necessary to pay principal and maximum annual interest on the bonds), to assure payment of bonds issued by the EDA for the project. 2. No Public Subsidy to Benefit Walmart Notwithstanding anything to the contrary stated herein, the EDA shall not support any portion whatsoever of the public subsidy contemplated herein being contributed to Walmart with respect to any costs Walmart may incur in connection with its participation in the SCC Redevelopment. Therefore, the Development Agreement will strictly prohibit the Developer from using any portion of the TIF proceeds for costs associated with the development of the Walmart parcel or to otherwise subsidize the Walmart development. 3. Forgivable City Loan The EDA will lend the Developer $1,000,000. The EDA will disburse the loan proceeds to the Developer contemporaneously with the Developer's 6301 Shingte Creek Parkway Recreation and Community Center Phone & TDD Number Brooklyn Center, "55430. 2199 (763) 50 -3400 City Hall & TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityathrooklyncerlter org i closing on the acquisition of the Capmark Parcel. The Development Agreement will strictly prohibit the Developer from using any portion of the loan proceeds for costs associated with the development of the Walmart parcel or to otherwise subsidize the Walmart development. The loaa will bear interest at the rate of 6% per annum and will mature five years from the date the EDA disburses the loan proceeds to the Developer ("Maturity Date'). There will be no principal or interest payments due prior to the Maturity Date. All principal and accrued interest will be due and payable in fall on the Maturity Date; provided, however, on the Maturity Date, the EDA will forgive amounts due under the terms of the promissory note as follows: .(a) The Developer and the EDA will define, in the Development Agreement, the minimum square foot area of the improvements the Developer will construct within the Project — which the EDA and the Developer agree shall not include any structures existing as of the date of the Capmark Parcel closing that ultimately remain as part of the SCC Redevelopment. (b) If the Developer has completed and secured a certificate of occupancy for all of the agreed upon improvements on or before the Maturity Date, the EDA will forgive all principal and interest due. (c) If the Developer has not completed and secured a certificate of occupancy for all of the agreed upon construction on or before the Maturity Date, the Developer must pay to the EDA, on the Maturity Date, that portion of the principal (plus accrued interest thereon) that is proportional to the square foot area of the agreed upon improvement for which the Developer has not completed and secured a certificate of occupancy before the Maturity Date. For example, if the Developer and the EDA agree that the Developer is to construct 350,000 square feet of improvements on or before the Maturity Date, and the Developer has completed and secured a certificate of occupancy for 315,000 square feet of improvements as of the Maturity Date and has not completed and secured a certificate of occupancy of 35,000 square feet (10 the EDA would only forgive 90 of the principal and interest due on the EDA loan. The Developer will $ rant the ED A a mortgage on the development property, exclusive of the Walmart site, to secure its obligation to repay the loan. The EDA will agree in the Development Agreement and the mortgage that the EDA's mortgage is subordinate to any mortgages or liens on the Development property that the Developer has previously granted or thereafter grants to secure the repayment of loans, the proceeds of which the Developer uses to finance hard or soft costs associated'with the development of the Project or to secure the performance of the Developer's obligations to Walmart with respect to the performance of the Developer's obligations relating to the development of the Walmart site. 4. Conveyance of the EDA Parcel The Development Agreement will provide that the EDA will sell the EDA Parcel to the Developer for an agreed purchase price to be determined based on the appraisal of the EDA Parcel. Prior to execution of the Development Agreement, Gatlin will secure an appraisal of the EDA Parcel at Gatlin's expense from an appraiser jointly `�.. selected by the EDA and Gatlin. The appraiser's analysis shall be based on an "as is" sale and a ® closing within 94 days of the date of the appraisal. The EDA will provide seller financing. The closing will occur after the Developer's acquisition of the Capmark property and the City and the EDA have approved a specific commercial use and site development plan for the EDA site. The Developer will execute a note in favor of the EDA for the amount of the purchase price. The Developer will grant the EDA a mortgage on the EDA Parcel to secure its obligation to repay the note. The note will bear interest at the rate of 6% per annum and will mature on the date five years from the closing date. The EDA will forgive the principal and interest due under the note; cancel the note and release the mortgage it on or before the maturity date, if the property currently occupied by Midas Muffler is developed in accordance with a development plan. approved by the City and the EDA as a part of the planned unit development for the project, and a certificate of occupancy has been issued for the development. After you have had the opportunity to review this letter, please call me to discuss any questions, comments or concerns you may have. Cornelius City Manager cc: Jennifer Wolfe, Springsted Incorporated Chad Williard, Gatlin Development Company (cwilliard a)gatlindc.com) Gary Eitel, Business and Development City Council i C. City of Brooklyn Center, Minnesota Tax Increment Financing District No. 5 (a Renewal and Renovation District) For The Shingle Creek Crossing TIFProject Time Schedule for Public Hearing on March 28, 2011 Date of Event Event Monday, January 24, 2011 EDA Execut' ion @ TBD Discussion of Proposed P IF District Creation Monday, February 14, 2011 City calls for public h @ 7:00 PM' nday, March 28, 2011 to • er approval IF District No. 5 (res provid ennedy & Graven) Thursday, February 17, 2011 P m , g Commission @ 7:00 PM Co e o revised P val of resolution determining TIF n neral redevelopment of the city (re i ed nnedy & Graven) On/Before February 24, School Districts M2gh a impact letters and TIF Plan Establishment (sent by Springsted) days prior to public hearing Monda 11 EDAICity Council Worksession @ Discussion of TIF District (Optional) Thursda 17, 2011 Publication of notice of public hearing on Deadline: i March 8 Establishment of TIF No. 5 (arrangements made by City) 10.30 days prior to public hearing Monday, March 28, 2 11 City Council holds public hearing, and adopts resolution consenting to @ 7 :00 pm establishment of TIF District No. 5 (resolution provided by Kennedy & Graven) Monday, March 28, 2011 EDA adopts resolution establishing TIE District No. 5 Following City Councl Meeting (resolution provided by Kennedy & Graven) {` After March 28, 2011 Fling of TIF District Establishment (completed by Springsted) Prepared on January 21, 2011 i Public Sector Advisors 4 11 L1:H Springsted City of BROOKLYN CENTER Tax Increment Financing Plan for Tax Increment Financing District No. 5 A Renewal and Renovation District Shingle Creek Crossing Project February 28, 2011 PRESENTER: Jenny Wolfe, Senior Project Manager Purpose of TIF Plan • Provides statutory authorization to use tax increment financing • Contents of TIF Plan and terminology required by State Statute 9 TIF Plan based on assumptions of redevelopment • TIF Plan is not a commitment to provide subsidy (Plan provides framework only) • Recommend Plan with maximum flexibility PL nnc SA-ror AaviS Springsted Statutory Requirements of the TIF Plan • A statement of objectives for the improvements of the project; • A statement of any property the Authority intends to acquire; • A list of the development activities and expected timing; • Estimated cost of the project to be paid or financed with tax increments from the District; • Estimated amount of bonds to be issued; Statutory Requirements of the TIF Plan (Cont'd) • Estimate of the original net tax capacity (ONTC); Estimate of captured net tax capacity (CNTC) at completion ; • Estimate of duration of TIF District; • Statement of alternate impacts; Identification of all parcels within the TIF District; • Estimate of fiscal and economic implications of the proposed TIF District. I i c E-'e t I"I I t r Springsted Municipality Findings • That the proposed area qualifies as a Renewal and Renovation TIF District; • That the proposed redevelopment would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future; • That the increase in market value that could reasonably be expected to occur without the use of TIF would be less than the increase from the proposed development after subtracting the present value of the projected tax increments; • That the TIF plan conforms to the general plan of the City; • That the tax increment financing plan will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the development or redevelopment of the project by private enterprise. Parcels within the TIF District School Parcel ID: District Address Partial Legal Description 02-118-21-32-0017 #281 1108 Brookdale Center Reg. Land Survey No. 1766, Tract A 02-118-21-32-0014 #281 1200 Brookdale Center Reg. Land Survey No. 1710, Tract B 02-118-21-32-0009 #281 1265 Brookdale Center Reg. Land Survey No. 1469, Tract C 02-118-21-32-0010 #281 1265 Brookdale Center Reg. Land Survey No. 1469, Tract D 02-118-21-32-0011 #281 1100 Brookdale Center Reg. Land Survey No. 1469, Tract E 02-118-21-23-0021 #281 No address Reg. Land Survey No. 1469, Tract A 02-118-21-23-0023 #281 1150 Brookdale Center Reg. Land Survey No. 1710, Tract C 02-118-21-31-0055 #286 2501 County Road No. 10 Reg. Land Survey No. 1614, Tract A Springsted Housing Development and Redevelopment Project No. 01 Project Areas I It 1 1.1;!.L mill i LL L 1.�b t L J Ii sp Legend =rojec. Lre3 Boine3-ry -F=!Parce s Oi Map of TIF District and Project Area M67' i J Ii sp Legend =rojec. Lre3 Boine3-ry -F=!Parce s Oi Map of TIF District and Project Area Renewal and Renovation District • Qualifications — Improved parcels make up at least 70% of the district. — More than 20% of the buildings (excluding outbuildings) are structurally substandard to a degree requiring substantial renovation or clearance. — A building is not considered substandard if it could be brought up to code at a cost of less than 15% of a comparable new building on that parcel. — More than 30% of the other buildings (excluding outbuildings) require substantial renovation or clearance to remove existing conditions Springsted Renewal and Renovation Determination • City retained Alden Associates Architectural Services to survey and evaluate the properties within the proposed TIF District. • Alden Associates Architectural Services independently ascertained that the qualification tests for tax increment eligibility, as required under Minnesota Statute, could be met for a Renewal and Renovation District. Renewal and Renovation Determination • There are eight (8) parcels within the District; • Four (4) buildings on 5 parcels, and 4 parcels with paving improvements; • Finding - 100% of the parcels met the coverage test (more than 15% of parcel improved) with a collective 88.5% area coverage - Exceeds 70% area coverage requirement Public Sector Advisors Springsted Renewal and Renovation Determination Of the four buildings: — One (25%) is structurally substandard — Mall building — One of remaining three buildings (33%) requires substantial renovation or clearance to remove existing conditions — JC Penney building — Other buildings include Macy's and Mervyn's — level of deficiencies not sufficient to qualify Renewal and Renovation Determination • Mall building found to be structurally substandard — Significant deficiencies exist justifying substantial renovation or clearance — Not in compliance with building code applicable to new buildings and the estimated cost to modify the building to satisfy current code is more than 15% of the cost to construct a new building Springsted Renewal and Renovation Determination • JC Penney building found to require substantial renovation or clearance when considering significant health and safety deficiencies and overall obsolescence, rendering the building not suitable for improvement or conversion - Significant deficiencies exist justifying substantial renovation or clearance - Not in compliance with building code applicable to new buildings and the estimated cost to modify the building to satisfy current code is more than 15% of the cost to construct a new building Proposed Development • Proposed Project redevelops Brookdale Mall, excluding the Sears department store, demolishing three anchors and all but 123,242 s.f. of the mall space • Once complete the Project is expected to include total retail space of 513,376 s.f. as follows -- — a Walmart Supercenter (152,036 s.f.), — three junior anchors (120,735 s.f.), — three restaurant pads (21 ,393 s.f.), — six retail stores (95,970 s.f.), — 123,242 s.f. of renovated mall space • Total estimated market value is approximately $61 .8 million (City estimate) Springsted Captured Tax Increment • Property taxes generated by the parcels within the District prior, to certification of the TIF District continue to flow to individual taxing jurisdictions (e.g. City, County, ISD). • Increased market value within the TIF District is captured to generate tax increment based on the tax rate in place when the TIF District is certified • Renewal and Renovation TIF District maximum term is 16 total years (15 years after receipt of first increment) Estimated first year is 2013 and final year is 2028 Captured Tax Increment (Cont' d) • Estimated Market Value of all property within TIF District is $12,645,000 as of January 2, 2010, for taxes payable in 2011 - estimated original net tax capacity (ONTC) of the TIF District is $248,210 • Estimated Market Value of District when redeveloped is $61 .8 million generating $1 ,234,573 of net tax capacity Public Sector Advisors Springsted 0 Captured Tax Increment (Cont' d) • Gatlin Development Company expects to complete the development within three years as follows: — walmart, approx. 40,000 s.f. of retail, one junior box of approx. 53,850 s.f. - expected to be 100% complete in 2012 and assessed January 2, 2013 for taxes payable 2014; — Renovated 123,242 s.f. in the mall, approx. 55,970 s.f. of retail, two junior boxes of 66,885 s.f. and approx. 6,000 s.f. of restaurant - expected to be 100% complete in 2013 and assessed January 2, 2014 for taxes payable 2015; and — Remaining two restaurant pads of 15,360 s.f. - expected to be 100% complete in 2014 and assessed January 2, 2015 for taxes payable 2016; • The increased market value of $49.2 million ($61 .8M minus $12.6M) is estimated to generate captured tax capacity of $635,968, after reduction for fiscal disparity Captured Tax Increment (Cont' d • Captured net tax capacity (CNTC) of $635,968 generates annual net tax increment of $846,768 beginning in tax year 2016 • When utilizing following tax rates Tax Rate Payable 2010 For parcels located within For parcels located within Taxing Jurisdiction Robbinsdale SD Brooklyn Center SD City of Brooklyn Center 52.41% 52.41% Hennepin County 42.64% 42.64% ISD #281 (Robbinsdale) 28.62% NA ISD #286 (Brooklyn Center) NA 51 .17% Other 8.22% 8.22% Total Tax Rate 131.89% 154.44% Public Sector Advisors Springsted Captured Tax Increment (Cont' d) • Estimated tax increment uses tax rates for payable 2010 (all that was available at the time the TIF Plan was first prepared) • County Auditor will certify original tax capacity rate of District applicable to taxes payable year that matches original net tax capacity, whenever available. - If certification requested prior to June 30, the original tax capacity and tax rate will be for taxes payable in 2011 ; - If certification requested after June 30, the original tax capacity and tax rate will be for taxes payable in 2012. Tax Increment Projections for TIF Plan The estimated total tax increment is $12,229,125, as shown below Less: Less: Retained Total Less: Total Annual Total Original Fiscal Captured Annual State Aud. Net Period Net Tax Net Tax Disp. @ Net Tax Gross Tax Deduction Increment Ending Capacity Capacity 35.5239% Capacity Increment 0.360% to Authority 2012 12/31/12 248,210 248,210 0 0 0 0 0 2013 12/31/13 267,187 248,210 6,741 12,236 16,139 58 16,081 2014 12/31/14 777,786 248,210 188,126 341,450 456,601 1,644 454,957 2015 12/31/15 1,120,492 248,210 309,869 562,413 752,813 2,710 750,103 2016 12/31/16 1,234,573 248,210 350,395 635,968 849,827 3,059 846,768 2017 12/31/17 1,234,573 248,210 350,395 635,968 849,827 3,059 846,768 2018 12/31/18 1,234,573 248,210 350,395 635,968 849,827 3,059 846,768 2019 12/31/19 1,234,573 248,210 350,395 635,968 849,827 3,059 846,768 2020 12/31/20 1,234,573 248,210 350,395 635,968 849,827 3,059 846,768 2021 12/31/21 1,234,573 248,210 350,395 635,968 849,827 3,059 846,768 2022 12/31/22 1,234,573 248,210 350,395 635,968 849,827 3,059 846,768 2023 12/31/23 1,234,573 248,210 350,395 635,968 849,827 3,059 846,768 2024 12/31/24 1,234,573 248,210 350,395 635,968 849,827 3,059 846,768 2025 12/31/25 1,234,573 248,210 350,395 635,968 849,827 3,059 846,768 2026 12/31/26 1,234,573 248,210 350,395 635,968 849,827 3,059 846,768 2027 12/31/27 1,234,573 248,210 350,395 635,968 849,827 3,059 846,768 2028 12/31/28 1,234,573 248,210 350,395 635,968 849,827 3,059 846,768 $12,273,304 $44,179 $12,229,125 Public Sector Advisor, Springsted District Restrictions • At least 90% of increment must be used to finance the costs of correcting conditions that allow designation of a renewal and renovation district. • These costs include but are not limited to: • Acquiring properties containing structurally substandard buildings; • Demolition and rehabilitation of structures; • Clearing of the land, the removal of hazardous substances or remediation necessary to development of the land; • Installation of utilities, roads, sidewalks, and parking facilities for the site; • Allocated administrative expenses of the authority may be included District Restrictions (Cont' d) • Not more than 20% of the total revenue derived from tax increments paid by properties in district may be expended on activities outside of the district but within the defined geographic area of the project (Housing Development and Redevelopment Project No. 1 ) 9 Administration expenditures are included within the 20% — Allows 10% of tax increments for expenditures outside the TIF district but within the Project area or five years after certification Springsted Typical Eligible Costs • Public Improvements (streets, sidewalks, utilities, parking) Acquisition • Soil Correction • Site Preparation/Demolition • Relocation • Financing Fees/Capitalized Interest Administrative Costs (10%) Estimated Public Costs shown In TIF Plan Expenditure Budget Land/Building acquisition $1 ,000,000 Site improvement/prep costs 3,300,000 Parking Facilities 0 Streets and Sidewalks 0 Installation of Public Utilities 0 Loan/Note/Bond Interest Payments 2,875,000 Administrative expenses 15184,000 Other Expenditures Bond Issuance Costs — Admin 39,000 Capitalized Interest payments 295,000 EDA Identified Public Impr — Within TIF District 25434,000 EDA Identified Public Impr — Outside TIF District 1 ,223,000 Total Expenditures $129350,000 Public Sector Advisers Springsted Estimated Revenues and Bonded Indebtedness • The Authority reserves the right to finance any or all public costs of the TIF District using -- — pay-as-you-go assistance, — internal funding, — general obligation or revenue debt, or — any other financing mechanism authorized by law including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. • The Authority anticipates issuing general obligation TIF bonds and executing internal borrowing from allowable general funds of the Authority and/or City to finance a portion of the public costs. • The Authority and City reserve the right to issue such bonds includes internal borrowing) in an amount not to exceed 9,000,000 (maximum indebtedness of the TIF District). Anticipated Financings The Authority anticipates issuing general obligation TIF bonds to finance $2.3 million of site improvement/prep costs and borrowing funds from TIF No. 2 to finance $1 million of acquisition and $1 million of site improvement/prep costs • The specifics will be outlined in a future Development Agreement (for discussion at a future work session) The projected tax increment generated by the proposed new TIF District is expected to repay the debt service on the GO bonds and the borrowed funds from TIF No. 2 within the maximum duration of the TIF district Public secr•.,f Springsted Anticipated Financings (Cont' d) The Authority reserves the right to spend additional monies generated by the TIF district on EDA approved public improvements within and outside the TIF district boundaries, as permitted under the statute Estimated Revenues in TIF Plan Revenue Budget Tax Increment revenue* $12,230,000 Interest on invested funds 120,000 Bond proceeds 0 Loan proceeds 0 Other Revenues 0 Developer Shortfall Payments 0 Total Revenue $12,350,000 * Net of State Auditor Deduction Springsted Estimated Cash Flow with Bond Debt Service 12,229,125 1,222,913 1,222,913 2,665,000 1,230,954 3,895,954 2,000,000 997,608 2,997,608 2,434,000 455,738 (2)Projected Tax Increment revenue is net of State Auditor deduction of 0.36% (3)Administrative Expenditure is 10%of annual revenue in column(2) (4)Pooled Expenditure is 10%of annual revenue in column(2) (5)Projected GO Bonds issued for$2,665,000 to produce$2.3 M for site improvement/prep costs,balance includes capitalized interest,underwriter discount and costs of issuance (6)Net debt service does not include interest paid with bond proceeds(capitalized) (7)Total net debt service adds(5)&(6) (8),(9),(10)-Anticipated repayment to City/Authority for interfund loan of$2,000,000 for land acquisition/site improvementlprep costs,assumed interest rate is 4% (11)The TIF Plan authorizes$2.434M of additional indistrict expenditures. (12)The annual surplus/(deficit)subtracts totals in columns(3),(4),(7),(10)and(11)from the TI Revenue in column(2) If expenditures in col.(4)&(11)do not occur&revenue/debt occur as projected,the district could close in year underlined(2022),6 years prior to statutory decertification The available funds in the district would be able to prepay both the GO TIF Bonds and Interfund Loan Repayments REVENUE EXPENDITURES Annual Calendar Projected Tax Admin Exp Pooled Exp Projected Net Debt Service GO TIF Bonds Projected Interfund Loan Re payments Reimb Other Surplus/ Principal Interest Total P&I Principal Interest Total P&I Year Ending Increment(TI) 10%TI 10%TI Indistrict Exp (Deficit) 1) (2) (3) (4) (5) (6) (7) (8) (9) (1 0) (11) (12) 12/31/2011 12/31/2012 - - - - 12/31/2013 16,081 1,608 1,608 - - - - - 12,865 12/31/2014 454,957 45,496 45,496 135,000 126,194 261,194 56,000 56,000 46,772 12/31/2015 750,103 75,010 75,010 135,000 122,954 257,954 - 200,000 200,000 142,129 12/31/2016 846,768 84,677 84,677 140,000 119,174 259,174 15,778 184,222 200,000 218,241 12/31/2017 846,768 84,677 84,677 145,000 114,484 259,484 121,837 78,163 200,000 217,931 12/31/2018 846,768 84,677 84,677 150,000 109,264 259,264 126,760 73,240 200,000 218,151 12/31/2019 846,768 84,677 84,677 155,000 103,264 258,264 131,881 68,119 200,000 219,151 12/31/2020 846,768 84,677 84,677 165,000 96,676 261,676 137,209 62,791 200,000 215,738 12/31/2021 846,768 84,677 84,677 170,000 89,251 259,251 142,752 57,248 200,000 218,163 12/31/2022 ---------846,768- ----- -84,677 -- ------84_677 - -_---180,000- - ------81,176 ------ 261,176 --------148,51-9-.-- --_--51,481 ---------200,000 --------216,238-------------------- 12/31/2023 846,768 84,677 84,677 190,000 72,176 262,176 154,519 45,481 200,000 215,238 12/31/2024 846,768 84,677 84,677 195,000 62,201 257,201 160,762 39,238 200,000 220,213 12/31/2025 846,768 84,677 84,677 210,000 51,720 261,720 167,257 32,743 200,000 215,694 12/31/2026 846,768 84,677 84,677 220,000 40,170 260,170 224,514 25,486 250,000 57,477 109,767 12/31/2027 846,768 84,677 84,677 230,000 27,795 257,795 233,584 16,416 250,000 169,619 12/31/2028 846,768 84,677 84,677 245,000 14,455 259,455 234,629 6,979 241,608 176,352 12,229,125 1,222,913 1,222,913 2,665,000 1,230,954 3,895,954 2,000,000 997,608 2,997,608 2,434,000 455,738 (2)Projected Tax Increment revenue is net of State Auditor deduction of 0.36% (3)Administrative Expenditure is 10%of annual revenue in column(2) (4)Pooled Expenditure is 10%of annual revenue in column(2) (5)Projected GO Bonds issued for$2,665,000 to produce$2.3 M for site improvement/prep costs,balance includes capitalized interest,underwriter discount and costs of issuance (6)Net debt service does not include interest paid with bond proceeds(capitalized) (7)Total net debt service adds(5)&(6) (8),(9),(10)-Anticipated repayment to City/Authority for interfund loan of$2,000,000 for land acquisition/site improvementlprep costs,assumed interest rate is 4% (11)The TIF Plan authorizes$2.434M of additional indistrict expenditures. (12)The annual surplus/(deficit)subtracts totals in columns(3),(4),(7),(10)and(11)from the TI Revenue in column(2) If expenditures in col.(4)&(11)do not occur&revenue/debt occur as projected,the district could close in year underlined(2022),6 years prior to statutory decertification The available funds in the district would be able to prepay both the GO TIF Bonds and Interfund Loan Repayments Cash Flow Notes • Col. 3 - Administrative Expenditure is 10% of annual TI revenue • Col. 4 - Pooled Expenditure is 10% of annual TI revenue • Col. 5, 69 7 - Projected GO Bonds issued for $2,665,000 to produce $2.3 M for site improvement/prep costs, balance includes capitalized interest, underwriter discount and costs of issuance • Col. 8, 9, 10 - Anticipated repayment to City/Authority for interfund loan of $2,000,000 for land acquisition/site improvement/prep costs, assumed interest rate is 4% • Col. 11 - TIF Plan authorizes $2.434M of additional in-district expenditures • If expenditures in col. (4) & (11 ) do not occur & revenue/debt occur as projected, the district could close in year underlined (2022), 6 years prior to statutory decertification Public Sector Advisors Springsted Municipal Findings (But For) • The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. - The proposed development consists of approximately 513,000 s.f. of retail uses constructed by the Developer, Gatlin Development Company. — The Developer has indicated they will begin construction of the proposed project only if the Authority can provide public assistance, due to extensive redevelopment costs and the speculative nature of the retail. Municipal Findings (Increased Market Value) • The increased market value of the site that could reasonably be expected to occur without the use of tax increment ($0) would be less than the increase in market value estimated to result from the proposed development ($49.2M) after subtracting the present value of the projected tax increments ($7.5M) for the maximum duration of the TIF District permitted by the TIF Plan ($41 .6M). - Detail follows. �, L : sor r C- _ Springsted Municipal Findings (Increased Market Value) Assumptions Present Value Date P.V. Rate -Gross T.I. Increase in EMV With TIF District Less: P.V of Gross Tax Increment Subtotal Less: Increase in EMV Without TIF Difference 07/30/11 5.00% $49,158,660 7,533,433 $41,625,227 0 $41,625,227 Year Annual Gross Tax Increment Present Value Q 5.00% 1 2013 16,139 14,518 2 2014 456,601 391,182 3 2015 752,813 614,242 4 2016 849,827 660,380 5 2017 849,827 628,933 6 2018 849,827 598,984 7 2019 849,827 570,461 8 2020 849,827 543,296 9 2021 849,827 517,425 10 2022 849,827 492,785 11 2023 849,827 469,319 12 2024 849,827 446,971 13 2025 849,827 425,687 14 2026 849,827 405,416 15 2027 849,827 386,110 16 2028 849,827 367,724 $12,273,304 $7,533,433 Municipal Findings Cont' d • The TIF Plan conforms to general plans for development of the City as a whole. - The City Planning Commission has or will determine that the development proposed in the TIF Plan conforms to the City comprehensive plan. • The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for redevelopment of the TIF District area by private enterprise. - The anticipated redevelopment projected by the Developer includes a mix of retail uses and substantial site improvements consistent with the City's design goals. Public Sector Advisors Springsted Hypothetical Tax Impact * Statement 1: If the projected Retained Captured Net Tax Capacity of the TIF District was hypothetically available to each of the taxing jurisdictions above,the result would be a lower local tax rate(see Hypothetical Adjusted Tax Rate above) which would produce the same amount of taxes for each taxing jurisdiction. In such a case,the total local tax rate would decrease by 2.000%(see Hypothetical Decrease in Local Tax Rate above). The hypothetical tax that the Retained Captured Net Tax Capacity of the TIF District would generate is also shown above. Statement 2: Since the projected Retained Captured Net Tax Capacity of the TIF District is not available to the taxing jurisdictions, then there is no impact on taxes levied or local tax rates. (1) Taxable net tax capacity=total net tax capacity-captured TIF-fiscal disparity contribution, if applicable. (2) The impact on these taxing jurisdictions is negligible since they represent only 6.23%of the total tax rate. Without Project or TIF District With Project and TIF District Projected Hypothetical 2009/2010 2009/2010 Retained New Hypothetical Hypothetical Tax Generated Taxable 2009/2010 Taxable Captured Taxable Adjusted Decrease In by Retained Taxing Net Tax Local Net Tax Net Tax Net Tax Local Local Captured Jurisdiction Capacity(1) Tax Rate Capacity(1) + Capacity = Capacity Tax Rate (') Tax Rate(') N.T.C. (') City of Brooklyn Center 17,960,128 52.412% 17,960,128 $635,968 18,596,096 50.620% 1.792% 321,924 Hennepin County 1,439,645,193 42.640% 1,439,645,193 $635,968 1,440,281,161 42.621% 0.019% 271,057 ISD#281 (Robbinsdale) 88,612,938 28.621% 88,612,938 $587,034 89,199,972 28.433% 0.188% 166,909 ISD#286(Brooklyn Center) 5,691,835 51.173% 5,691,835 $48,934 5,740,769 50.737% 0.436% 24,828 Other(2) --- 8.219% --- $635,968 --- 8.219% --- --- Totals ISD#281 131.892% 129.892% 2.000% ISD#286 154.444% 152.197% 2.247% * Statement 1: If the projected Retained Captured Net Tax Capacity of the TIF District was hypothetically available to each of the taxing jurisdictions above,the result would be a lower local tax rate(see Hypothetical Adjusted Tax Rate above) which would produce the same amount of taxes for each taxing jurisdiction. In such a case,the total local tax rate would decrease by 2.000%(see Hypothetical Decrease in Local Tax Rate above). The hypothetical tax that the Retained Captured Net Tax Capacity of the TIF District would generate is also shown above. Statement 2: Since the projected Retained Captured Net Tax Capacity of the TIF District is not available to the taxing jurisdictions, then there is no impact on taxes levied or local tax rates. (1) Taxable net tax capacity=total net tax capacity-captured TIF-fiscal disparity contribution, if applicable. (2) The impact on these taxing jurisdictions is negligible since they represent only 6.23%of the total tax rate. Fiscal and Economic implications • The TIF Plan needs to include a description of the probable impact of the district on city-provided services such as police and fire protection, public infrastructure, and the impact of any general obligation tax increment bonds - - City does not expect to have significant impact to city provided services such as police and fire protection resulting from the establishment of the TIF district and the eventual redevelopment of the project site. — City expects to incur public infrastructure costs related to the project and fund those costs directly from the TIF district revenues. — City plans on issuing general obligation tax increment revenue bonds and recognizes that the planned bond issue will not materially impact the City's future ability to issue other debt for general fund purposes. Public Sector /advisors Springsted Fiscal and Economic Implications (Cont' d) • Total tax increment generated over the life of the district is estimated to be $12,273,304 (before State Auditor deduction) Amount of tax increments over the life of the district that would be attributable to each taxing entity assuming their local tax rate remained the same - - $364,768 estimated for Brooklyn Center school district - $2,424,449 estimated for Robbinsdale school district - $3,915,924 estimated for Hennepin county - $4,813,353 estimated for City of Brooklyn Center • The Authority/City believe the amounts detailed above would not be generated since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. Questions Jenny Wolfe, Senior Project Manager 651 -223-3085 Springsted Incorporated 380 Jackson Street, Suite 300 Saint Paul , MN 55101 -2887 Springsted