HomeMy WebLinkAbout2012 02-13 EDAP Regular Session a
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EDA MEETING
City of Brooklyn Center
February 13, 2012 AGENDA
1. Call to Order
—The EDA requests that attendees turn off cell p hones and pagers during the meeting. A
copy of the full City Council packet, including EDA (Economic Development Authority),
is available to the public. The packet ring binder is located at the front of the Council
Chambers by the Secretary.
2. Roll Call
3. Approval of Agenda and Consent Agenda
—The following items are considered to be routine by the Economic Development
Authority (EDA) and will be enacted by one motion. There will be no separate
discussion of these items unless a Commissioner so requests, in which event the item will
be removed from the consent agenda and considered at the end of Commission
Consideration Items.
a. Approval of Minutes
1. January 9, 2012 — Regular Session
4. Commission Consideration Items
a. Resolution Opting Not to Waive Tort Liability for 2012
Requested Commission Action:
— Motion to adopt resolution.
b. Resolution Authorizing Third Amendment of the Food Service Management
Agreement with Flik International Corporation
Requested Commission Action:
— Motion to adopt resolution.
5. Adjournment
EDA Agenda Item No. 3a
MINUTES OF THE PROCEEDINGS OF THE
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF BROOKLYN CENTER
IN THE COUNTY OF HENNEPIN AND THE
STATE OF MINNESOTA
REGULAR SESSION (�
JANUARY 9, 2012
CITY HALL — COUNCIL CHAMBERS
1. CALL TO ORDER
The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to
order by President Tim Willson at 7:51 p.m.
2. ROLL CALL
President Tim Willson and Commissioners Carol Kleven, Kay Lasman, and Dan Ryan. Also
present were Executive Director Curt Boganey, Director of Business and Development Gary
Eitel, Assistant City Manager /Director of Building and Community Standards Vickie
Schleuning, City Attorney Charlie LeFevere, and Carla Wirth, Timesaver Off Site Secretarial,
Inc.
3. APPROVAL OF AGENDA AND CONSENT AGENDA
Commissioner Lasman moved and Commissioner Ryan seconded approval of the Agenda and
Consent Agenda, as amended to remove Item 3b, and the following item was approved:
3a. APPROVAL OF MINUTES
1. December 12, 2011 — Regular Session
3b. EDA RESOLUTION AUTHORIZING THIRD AMENDMENT OF THE FOOD
SERVICE MANAGEMENT AGREEMENT WITH FLIK INTERNATIONAL
CORP This item was removed from the agenda.
Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
4a. EDA RESOLUTION NO. 2012 -01 ELECTING OFFICERS FOR THE
ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
BROOKLYN CENTER
01/09/12 -1- DRAFT
Commissioner Kleven moved and Commissioner Lasman seconded adoption of EDA
RESOLUTION NO. 2012 -01 Electing Officers for the Economic Development Authority in and
for the City Of Brooklyn Center.
President Willson stated the appointments are:
President /Treasurer Tim Willson
Vice - President Kay Lasman
Assistant Treasurer Daniel Jordet
Secretary Gary Eitel
Motion passed unanimously.
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5. ADJOURNMENT
Commissioner Lasman moved and Commissioner Ryan seconded adjournment of the Economic
Development Authority meeting at 7:53 p.m.
Motion passed unanimously.
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01/09/12 -2- DRAFT
EDA Agenda Item No. 4a
EDA ITEM MEMORANDUM
DATE: 1 February 2012
TO: Curt Boganey, Executive Director
FROM: Daniel Jordet, Assistant Treasurer
SUBJECT: Statutory Tort Liability Limits
Recommendation:
It is recommended that the Economic Development Authority consider approval /adoption of the
attached resolution adopting the no waiver option for statutory tort liability insurance.
Background:
Each year the EDA must choose 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 EDA has chosen not to
waive the liability limits and the regular premium for insurance has covered all claims.
If the EDA 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 $ 3,000 per year.
Budget Issues:
The 2012 budget anticipates leaving the no waiver option in place for 2012 and has anticipated
insurance premiums based on that no waiver option. Waiving the statutory limits would require
that at least $ 3,000 in additional premium costs be allocated for 2012 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
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:Mission: Ensurin, an attractive, clean, safe conunanity that enhances the quality of life and preserves the public trust
SECTION 1: LIABILITY COVERAGE WAIVER FORM
Cities obtaining liability coverage from the League of Minnesota Cities Insurance Trust must decide
whether or not to waive the statutory tort liability limits to the extent of the coverage purchased. The
decision to waive or not to waive the statutory limits has the following effects;
if the city does not waive the statutory tort limits, an individual claimant would be able to recover no
more than $500,000, on any claim to which the statutory tort limits apply. The total which all claimants
would be able to recover for a single occurrence to which the statutory tort limits apply would be
limited to $1,500,000. These statutory tort limits would apply regardless of whether or not the city
purchases the optional excess liability coverage.
0 If the city waives the statutory tort limits and does not purchase excess liability coverage, a single
claimant could potentially recover up to $1,500,000. on a single occurrence. The total which all
claimants would be able to recover for a single occurrence to which the statutory tort limits apply would
also be limited to $1,500,000., regardless of the number of claimants.
U If the city waives the statutory tort limits and purchases excess liability coverage, a single claimant
could potentially recover an amount up to the limit of the coverage purchased. The total which all
claimants would be able to recover for a single occurrence to which the statutory tort limits apply would
also be limited to the amount of coverage purchased, regardless of the number of claimants.
Claims to which the statutory municipal tort limits do not apply are not affected by this decision.
This decision must be made by the city council. Cities purchasing coverage must complete and
return this form to LMCIT before the effective date of the coverage. For further information, contact
LMCIT. You may also wish to discuss these Issues with your city attorney.
Brooklyn Ctr EDA/HRA accepts liability coverage limits of $ 500,000!$1,500,000 from the League of
Minnesota Cities Insurance Trust (LMCIT).
Check one,
The city DOES NOT WAIVE the monetary limits on municipal tort liability established by
Minnesota Statutes 466.04.
[] The city WAIVES the monetary limits on tort liability established by Minnesota Statutes 466.04,
to the extent of the limits of the liability coverage obtained from LMCIT.
Date of city council meeting
Signature Position
Return this completed form to LMCIT, 145 UnlverskyAve. W,, 5r Paul, MN. 55103-2044
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Commissioner introduced the following resolution and moved
its adoption:
EDA RESOLUTION NO.
RESOLUTION OPTING NOT TO WAIVE TORT LIABILITY FOR 2012
WHEREAS, the Economic Development Authority of the City of Brooklyn Center
has an option to waive its protection under the tort liability limitations contained in Minnesota
Statutes 466.04; and
WHEREAS, the statutory tort limit for 2012 is $500,000 per individual with an
aggregate limit of $1,500,000 per incident; and
WHEREAS, the Economic Development Authority of 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 Economic Development Authority
of the City of Brooklyn Center, Minnesota, that the Authority does not waive the monetary limits on
municipal tort liability established by Minnesota Statutes 466.02 for 2012.
February 13, 2012 �
Date President
The motion for the ado tion of the foreg resolution was duly seconded b commissioner
p g g Y Y
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
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EDA Agenda Item No. 4b
EDA ITEM MEMORANDUM
DATE: January 23, 2012
TO: Curt Boganey, City Manager
FROM: Jim Glasoe, Director of Community Activities, Recreation and Services
SUBJECT: Resolution Authorizing Third Amendment of the Food Service Management
Agreement with Flik International Corp
Recommendation:
It is recommended that the Economic Development Authority consider approval /adoption of the
following resolution amending the agreement with Flik International Corp for Food Service
Management at the Earle Brown Heritage Center.
Background:
On January 1, 2005 the EDA and Flik International Corp entered into an agreement for Food
Service Management at the Earle Brown Heritage Center. The original agreement called for a
two year contract.
On February 1, 2007, the EDA authorized the First Amendment to this agreement which
lengthened the contract by two years, clarified some contract language and amended the
"Agreement Not to Compete" section to allow Flik to operate a facility in Trego Wisconsin. j
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On January 10, 2010, the EDA authorized the Second Amendment to this agreement, which
effectively extended the contract for an additional five years.
Flik has now asked the EDA to consider amending this agreement for the third time, ostensibly
to allow Flik to operate the Ameriprise Conference Center in Chaska Minnesota. In exchange
for this accommodation, Flik has agreed to reduce the EBHC food costs by 2% in 2012, 3% in
2013, 4% in 2014 and by mutual agreement for each year thereafter. Based upon 2010 end of
year figures, this would equate to food cost reductions of $7,177, $10,765 and $14,354
respectively.
In addition to the food cost reduction, Flik has agreed to pay the EDA an annual $5,000 goodwill
signing bonus for as long as Flik operates the Ameriprise Conference Center.
All other terms and provisions of the Agreement and Amendments will remain in full force and
effect and will remain unaffected by the Third Amendment.
Budget Issues:
This agreement will generate a reduction in food costs moving forward and will provide an
annual "signing bonus" for the Earle Brown Heritage Center Operations.
tllissinrtt Ensmhkq an attractive, dealt, tnfe cv nlAlnwR )' 11tH/ enhances the qualltp of 1if , and preserves the publie trust
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EDA ITEM MEMORANDUM
Council Goals:
Ongoing:
1. We will provide streamlined, cost effective, quality services with limited resources.
Mission: Ensurihg an attractive, clean, safe eornnusnify that enhances the qualilp of life andpreserves the public trust
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Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING THIRD AMENDMENT OF THE FOOD
SERVICE MANAGEMENT AGREEMENT WITH FLIK INTERNATIONAL
CORP
WHEREAS, On January 1, 2005 the EDA and Flik International Corp entered into an
agreement for Food Service Management at the Earle Brown Heritage Center. The original
agreement called for a two year contract.; and
WHEREAS, On February 1, 2007, the EDA authorized the First Amendment to this
agreement which lengthened the contract by two years, clarified some contract language and
amended the "Agreement Not to Compete" section to allow Flik to operate a facility in Trego
Wisconsin; and
WHEREAS On January 10, 2010, the EDA authorized the Second Amendment to
this agreement, which effectively extended the contract for an additional five years; and
WHEREAS, In exchange for this accommodation, Flik has agreed to reduce the
EBHC food costs by 2% in 2012,3% in 2013,4% in 2014 and by mutual agreement for each
year thereafter and furthermore, Flik has agreed to pay the EDA an annual $5,000 goodwill
signing bonus for as long as Flik operates the Ameriprise Conference Center.
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NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority
in and for the City of Brooklyn Center that the President and /or Executive Director are hereby
authorized to execute the Third Amendment to the Food Service Management Agreement with Flik
International Corp.
Date President
The motion for the adoption of the foregoing resolution was duly seconded by Commissioner
and upon vote being taken thereon, the following voted in favor thereof.
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
THIRD AMENDMENT TO AGREEMENT
This Third Amendment to the Agreement for Food Service Management entered into by
and between the Economic Development Authority in and for the City of Brooklyn Center
( "Owner ") and Flik International Corp ( "Manager ") is effective January 1, 2012,
RECITALS
A. On January 1, 2005, Owner and Manager entered into an Agreement for Food Service
Management ( "Agreement") whereby Manager agreed to manage Owner's catering
facility; and
B. On February 1, 2007, Owner and Manager entered into a First Amendment to the
Agreement ( "First Amendment"); and
C. On January 1, 2010, Owner and Manager entered into a Second Amendment to the
Agreement ( "Second Amendment" ); and
D. Owner and Manager now desire to amend the Agreement as hereinafter set forth.
NOW, THEREFORE, for good and valuable consideration, the sufficiency of which
is hereby acknowledged, the parties, intending to be legally bound, contract and agree as
follows:
1. Notwithstanding Section 26, AGREEMENT NOT TO COMPETE, of the
Agreement, the parties agree that Manager may operate the Ameriprise
Conference Center located at One Oak Ridge Drive, Chaska, Minnesota. In
exchange for Owner's approval to operate the Ameriprise Conference Center and
for so long as Manager operates the Ameriprise Conference Center, Manager
agrees to reduce the percentage of Total Sales represented by Net Product Cost by
at least the following percentages ( "Percentage Reduction") compared to the 2011
calendar year -end Net Product Cost percentage:
Year Percentage Reduction
2012 2%
2013 3%
2014 4%
2015, etc. By mutual agreement
For purposes of this section, "Net Product Cost" means the food and beverage
costs shown, for illustrative purposes, on the attached Sample P &L Statement,
and labeled "NET PRODUCT COST ", and "Total Sales" means the total of all
sales shown, for illustrative purposes, on the attached Sample P &L Statement,
and labeled "TOTAL SALES ".
395576 CLL BR305 -2
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If Manager fails to so reduce the percentage of Total Sales represented by the Net
Product Cost by at least the Percentage Reduction, Manager will pay Owner the
difference between the actual Net Product.Cost for the calendar year and the Net
Product Cost that would have achieved the Percentage Reduction.
Any such payment owing will be reconciled and paid within thirty (30) days after
the end of the relevant calendar year. The Percentage Reduction will be prorated
for the final year if that year of operation of the Ameriprise Conference Center is
less than a full year
Example: The attached Sample P &L Statement shoos the Manager expense
category breakdown for the operation. The Net Product Cost percentage (18.1
on the ,S'ample), tivhlch must be reduced by the Percentage Reduction, will be
based on the 2011 final, calendar year -end Net Product Costpercentage.
2. Manager will pay Owner a goodwill signing bonus in the amount of Five
Thousand Dollars ($5,000) ("Signing Bonus ") at the close of each of the calendar
years 2012, 2013 and 2014, for so long as Manager operates the Ameriprise
Conference Center (prorated for partial years).
3. All other terms and provisions of the Agreement, First and Second Amendments
shall remain in full force and effect and shall remain unaffected by this Third
Amendment.
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IN WITNESS WHEREOF, Owner and Manager have duly executed this Third
Amendment on the dates indicated below.
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ECONOMIC DEVELOPMENT FLIK INTER TIONAL CORP
AUTHORITY IN AND FOR THE
CITY OF BROOKLYN CENTER
By: By
Cornelius Boganey is President
Executive Director
Dated: Dated: 1 1 t k
2
395576 CLL BR305 -2
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