Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Agenda Packets - 1997/10/06
MO NDSIV `<>` `... .............. .... EillogiossiontWO ... K SESSIOt ..........::::::......::; :,.:: • : ..::::.:::::::::::: :::.::::::.:::::::::.::::::::::::::::::::::::::::. : �:� : .:.. :..:O ER:.. .::199 ...:.::: i;i 111.11111.11111111„991111ip9Ippipiu ijiiiiiiii _6:00 _ r . Re ii afWar Sessio Items Discussed Per Consensus 1. Discussion of 1998 Budget. (Presented by:Chuck Whiting, City Administrator) 2. Review of Council Room Sound System. (Presented by:Patrick Toth) • 3. Discussion of North Suburban Cable TV. Staff Report No. 97-2222C (Presented by:Corlie Wilson) 4. EDC Candidate Interviews. Staff Report No. 97-2223C (Presented by: Cathy Bennett,Director of Economic Development) 5. Discussion of Housing Inspection Prosecution. (Presented by: Tom Hughes) 6. Discussion of U of M Urban Design Center on Ring Road/City Center Concept. Memo (Presented by: Chuck Whiting, City Administrator) • 1 Page 2 7. Discussion of SEH Analysis of Highway 10 Crossing. (Presented by: Cathy Bennett, Director of Economic Development) 8. Discussion of Anthony Properties Preliminary Negotiations Agreement. Staff Report No. 97-2225C(Presented by: Chuck Whiting, City Administrator and Bob Long, City Attorney) 9. Discussion of Spring Lake Road Status. Staff Report No. 97-2224C (Presented by:Mike Ulrich, Public Works Director) 10. Review and Discussion of Current Assessment Policies. Staff Report No. 97-2226C (Presented by:Mike Ulrich, Public Works Director) • 11. Discussion of Pavement Management Plan. Staff Report No. 97-2227C (Presented by:Mike Ulrich, Public Works Director) 12. Consideration of Special Assessment for Sanitary Sewer Service. Staff Report No. 97-2228C (Presented by:Mike Ulrich, Public Works Director) 13. Discussion of Expansion of the Mermaid. Staff Report No. 97-2229C (Presented by: Cathy Bennett, Director of Economic Development) 14. Discussion of Purchase Offer for 2625 Highway 10. Staff Report No. 97- • 2230C (Presented by: Cathy Bennett, Director of Economic Development) elk Page 3 15. Discussion of Joint Powers Agreement and Cooperative Agreement • regarding MSP Project and Minneapolis Public Housing Authority. Staff Report No. 97-2231 C (Presented by:Bob Long, City Attorney) 15A. Discussion of Housing Replacement Program Activity. Staff Report No. 97-2240C (Presented by: Cathy Bennett, Director of Economic Development) 16. Update of MAC/Legislative Meeting. Memo (Presented by: Chuck Whiting, City Administrator) 17. Discussion of Park Dedication Fees. Staff Report No. 97-2232C (Presented by:Bob Long, City Attorney) • 18. Status Update of the Development Agreement with Everest. Staff Report No. 97-2233C (Presented by: Cathy Bennett, Director of Economic Development) 19. Discussion of Selection of Auditing Firm for 1997, 1998 and 1999 Audits. Staff Report No. 97-2234C (Presented by:Bruce Kessel, Finance Director) 20. Consideration of Accounting Software Seleciton. Staff Report No. 97- 2242C (Presented by:Bruce Kessel, Finance Director) • Page 4 21. Consideration of Incentive Pay Ranges for Golf Course Employees for 1997. Staff Report No. 97-2235C (Presented by:Bruce Kessel, Finance 1111 Director) 22. Discussion of Amendment to Deferred Compensation Program. Staff Report No. 97-2236C (Presented by:Bruce Kessel,Finance Director) 23. Discussion of Use of 4M Fund as City Depository. Staff Report No. 97- 2237C (Presented by:Bruce Kessel, Finance Director) 24. Review of HAY Study Status. Information to be presented. (Presented by: Bruce Kessel, Finance Director) i 25. Discussion Regarding Affirmative Action Plan. Staff Report No. 97-2238C (Presented by:Lynnette Morgan, Human Resource Technician) 26. Discussion of National League of Cities Conference Attendance. (Presented by: Chuck Whiting, City Administrator) 27. City Administrator Six Month Review. Memo (Presented by: Chuck Whiting, City Administrator) 28. Discussion of Coalition for Healthy Youth. Staff Report No. 97-2239C • (Presented by: Chuck Whiting, City Administrator) . October 3, 1997 To: Honorable Mayor and City Council From: Chuck Whiting, City Administrator Re: October 6, 1997 Council Work Session This meeting has been building up to a lot of subjects to cover, so I apologize for the lengthy agenda but for the most part it should move along fairly well. Here goes: Item 1 - 1998 Budget: I have been able to talk with each of you and will try to touch on issues of concern for next year's budget. Bruce and I have also sat down to once again review any changes that can be made to move this along. I realize this is a daunting task for a relatively new Council, but I do appreciate the candid comments I received. I was also asked to suggest my own recommendations, so of which may come across as opinions and they can be taken for what they are worth. First, it appears there is more consensus on incremental changes rather than large scale changes. Large scale changes would be necessary with elimination of the franchise fee. Still, there is concern over a 6%levy increase. My own opinion is twofold, first, history would suggest that the levy is of more concern to most people, and second, the legislature is more apt to fool around with restricting ioits use than franchise fee revenues. While there is general dislike of the franchise fee for a number of reasons, intuitively it does spread out over more than just property tax payers. Other cities are considering instituting a franchise fee (Blaine) and I don't think it will be that uncommon to see municipalities implementing them. But with the discussion and sensitivities to it, I do think it is prudent to cut back on the rate with the long term idea of reducing it. I asked Bruce to calculate a 1/2%cut for each of the next two years, followed by 1/2% cuts every other year there after until the fee is no longer collected. Planning its reduction will continue to force the city to confront questions of value for service rendered and ability to pay, a practice I think will make for a premium on efficiency. This percentage decrease by the way equals about $40,000 in revenues. Second, despite decreasing the franchise and other shifts of costs to the general fund, a 6% levy increase coupled with the shifts in property classification rates appears more than what the norm has been in Mounds View over the past few years. Bruce is figuring a 3% levy increase, which is about $45,000 less than a 6% increase in levy revenues. After that, a couple of budgeting mechanical items were looked at. First, it has been correctly noted that the City does tend to bring in more revenues than it budgets, and spend less each year than it budgets producing some very favorable year end balances. This leads to questioning about padding. While generally the City should over estimate expenses and underestimate revenues, some of the past year's figures do seem greater than they should have been. Last year we identified some of these that were done as a matter of practice, and we will look again for some and note them Monday evening illto you. Bruce had placed the figure of$75,000 as an ongoing anticipated favorable balance, and will reduce that to $50,000. Another line that contributes to this is the contingency expense, which was presented as$50,000. This will be reduced to$25,000. Another line that will deserve some thought will be the community center transfer. Ideally this shouldn't have to continue after 1998, but with the anticipated tight operating budget for the community center, we may need to see that continue. For now, we felt it had to be left in the budget. Additional items that can be changed will be. These include the likelihood of changing auditing firms at a savings of a few thousand dollars(on the work session agenda). There is also a state action that is providing some aid regarding pensions which we have not had in the budget to date (Bruce can review). Also, the receptionist position being open, we reviewed our options on this and agreed to try to rearrange our office space and not replace the position at this time, but with an option to do so if necessary. Because there is an intern position budgeted in Community Development, we decided to add the budgeted amounts of these two positions, and divide by two, assuming the intern position will go forward with analysis of the receptionist need to be evaluated later. This will simply give us some flexibility in an otherwise tight situation. It may also be viewed at intern funds for the city administrator if that is determined to be necessary and a receptionist is not needed. These are the short term changes that can be made and Bruce will develop the figures to see the end result. Additional considerations were made and I will review them here. First, a fund transfer will need to be made to reconcile the MSA account. Bruce will address the best way to go about this, but that may be an additional draw on general fund balances (not necessarily the 1998 budget though). Also, a few community development issues could be worked on by the new director. Raising building permit fees, passing through development review costs to the developer, and defining a cost scope of updating the comprehensive plan (something due next year and has $5,000 available from the Met Council) are three that could help in cost control. Suggestions were also made to review some personnel pay practices. Spreading out the step schedule for new hires should be viable. City policy also attempts to correlate staff pay levels to Stanton levels, something that in reality isn't happening but should be decided upon within affordable limits of the City. To do this, I have asked Bruce and Lynette to conduct a market study of pay, and include critiquing step levels, bench marking and cola increases in order to assess where the City's policies are relative to the City's ability to pay. With this taking place, the City simply has to get going on the Hay evaluation. Other suggestions include contacting other cities to possibly share housing inspection needs, reduce the amount of snow plowing to save costs, reducing the cost of maintaining the City's web site and looking into recreation fees and operations. Questions regarding two positions, the Economic Development Director and the Human Resources Technician were also raised. The EDA Director position is paid for out of TIF funds except for 10%,which according to actual work is now probably low. My position is that my work without the EDA Director would be severely strained in managing and coping with development projects, and secondly but just as importantly, Cathy Bennett plays a key role in providing a second head in general management matters with me in City Hall. My time simply does not allow me to address common problems and issues effecting day to day operations, at least at the levels that appear to be expected. As for the HRT position, its value is administrative in simply keeping track of the volumes of personnel related functions that take place. This work has • to be done as there is no one else to do it. Other functions such as recycling have been assigned to this position as well. • This is probably enough for now on this subject. Council comments Monday evening and further direction can be determined. The Mayor and myself are meeting with Nick Temali on Monday to discuss some recreation options and can report that evening. Item 2-Council Room Sound System: I have asked Patrick Toth to visit briefly with the Council as to the status of the Council room sound system. Generally speaking, it will help if all of us speak up more loudly during meetings. Item 3 - North Suburban Cable TV Report: Coralie Wilson will be present Monday evening to update the Council on the cable system's recent work, including the new franchise agreement. I believe we will also have Jerry Skelly, our representative to the Commission present. Item 4-EDC Candidate Interviews: One candidate remained from the three the Council wanted to interview. Item 5-Housing Inspection Prosecution: City prosecutor Tom Hughes will be present to review his role in prosecuting housing code violations for the City. This subject has been discussed by the Council from time to time and Mr.Hughes should be able to answer many of the Council's questions. Item 6 - University of Minnesota Center for Urban Design regarding Ring Road Concept Options: As a follow up to the original work done by the U of M last spring for the City, I asked them to look more closely at the City Hall - Community Center area after being approached by Wendell Smith, representing Anthony Properties on an office building idea. Council will recall discussing some options regarding this area which suddenly became very unpopular with some residents after it was portrayed as something that it wasn't. While I will take responsibility for not adequately addressing concerns regarding a negotiations agreement with Anthony Properties, common sense would suggest that with the theater project pending and the community center underway, some free work from a respected institution may be worth a look, particularly since the initial concept of a ring road was well received and with the City facing a deadline of next year to update its comprehensive plan. With concerns expressed that no one knew what was taking place, I have suggested the Planning Commission, Parks and Recreation Commission and Economic Development Commission be present Monday evening to also review the U of M's work. I would suggest one of two courses be taken upon completion of the U of M's presentation and discourse with the Council, one, drop the ring road concept so it is clear that it is not to be considered an option in the future for staff to work on, for commissions to consider or for the community to regard as viable. Or two, set up the public meeting that I recommended at the August 25 meeting to address issues that the concept is sure to present and how best to deal with those issues in the eyes of the community. I have discussed this possibility with the U of M staff and possible dates, of which October 28 would be my recommendation if this concept is to be given any further consideration. Item 7-SEH Analysis of Highway 10 Crossing: Continuing with the corridor/ring road area, Glen • Van Wormer of SEH will be present to review his work on the Highway 10 crossing light and options the City may want to consider, as well as brief us as to MNDOT's apparent feelings towards this. Item 8 -Anthony Properties Preliminary Negotiations Agreement: This is a revised version of the agreement that was not approved by the Council August 11. I attempted to take all references to the use of tax increment out, any references that could be construed as to obligate the City to anything other than discussing options with Anthony Properties. Wendell Smith will be present Monday evening to discuss this and contribute if called upon during the ring road discussion. I have explained the concerns that have been conveyed to regarding his interest and that he should expect questions. Bob Long and myself can attempt to respond to inquiries about the agreement itself One question may how would this matter be brought back to the Council after the August 11 vote and if that is appropriate. Mr. Smith is concerned that his project is in jeopardy if the City does not begin moving on one of two options he sees effecting the theater project, first, if the City truly wants to have a ring road and it must go through his property, he wants to know how he can be compensated for the useable land (hence the land trade question), or if the ring road is not to be pursued through his property and he can commence with the planning review proposal. Item 9-Spring Lake Road Status: Mike will brief the Council on the status of this effort. Council should anticipate having some residents at the meeting for this. Item 10-Current Assessment Policies: Mike will also review the current assessment policies and how they relate to the pavement management plan. Council understands that the budget projections they have been given over the past few months reflect the current assessment policies and scheduling of street projects. If after consideration of the policies changes are to be made, one large consideration to keep in mind is whether the road project schedule is to be lengthened to meet 40 budgetary abilities, or whether new revenues or existing fund balances will be tapped to maintain the schedule. Both cases here are assuming a reduction in the assessable portion of the projects to residents. Item 11 -Pavement Management Plan:Mike will review the work he has been able to do and how the plan can work. Options regarding quality of work, components of work and assessment policies I believe can all be taken into account under this plan. The Council may wish, if time constraints demand it,to set aside another meeting soon to deal with these three related agenda items in a more time free fashion. Item 12 - Special Assessment for Sanitary Sewer Service: Mike will also present this. Item 13-Expansion of the Mermaid: Charlie Hall has been discussing with Cathy and myself some options for expanding the Mermaid. Cathy's memo reviews this. Item 14 - Purchase Offer for 2625 Highway 10: This is the purchase offer from TOLD Development for the former blue house property. Cathy again covers this. Item 15 -Joint Powers Agreement and Cooperative Agreement Regarding MSP Real Estate Project and Minneapolis Public Housing Authority: Council will recall that at the September 22 meeting some discussion took place regarding another agreement or agreements that have to be transacted by the City in order for MSP to move ahead on their townhouse project. Bob Long can i explain the legalities of the agreements the City would consider. I have enclosed in your packet correspondence from the attorney regarding two agreements. Apparently the City will be asked to • consider its level of involvement in administrative responsibilities. What those responsibilities are, I am not aware of at this writing,but in conversations with Bob Long, I would assume the City would want to minimize its responsibilities if it even agrees to enter into such an agreement. Again, Bob will direct the Council in the pros and cons of this issue. Item 16 - MAC/Legislative Meeting: Bob Long, Mayor McCarty and myself attended Senator Novak's meeting with legislators representing the airport area and MAC officials. After a fair amount of debate as to the merits of the MAC plan and the communities' concerns, Senator Novak essentially suggested that further meetings between the communities and MAC may yield compromises on airport and plan issues that would be better dealt with than through legislative or court settlement remedies. Generally speaking, the group agreed and will meet again this month. Bob, Duane and myself can discuss this more fully with the Council Monday evening. Item 17 - Park Dedication Fees: This issue has come up in regards to the Everest project. Bob Long has noticed some items related to this issue that the City should address and he will discuss this Monday. Item 18-Development Agreement With Everest: Everest has reluctantly agreed to pay the park dedication fees for the Building N development. Their correspondence and Cathy's memo outline the details. The final agreement will come back to the Council on October 13. Item 19-Selection of Auditing Firm for 1997, 1998 and 1999: Bruce solicited bids from auditing firms with half an eye towards reducing our costs and appears to have come up with some options to present for discussion on Monday evening. Item 20 -Accounting Software Selection: Same case for the accounting software. Item 21-Incentive Pay Ranges for Golf Course Employees for 1997:Bruce will present this item. Item 22 -Amendment to Deferred Compensation Program: Bruce can also present this item. Item 23- 4M Fund as City Depository: As he can with this one too. Item 24 -Review of HAY Study Status: And this one as well. Item 25-Affirmative Action Plan: Lynette Morgan will be present to discuss this with the Council. Item 26-National League of Cities Conference Attendance: Council members have been received NLC information for the conference in Philadelphia in December. Do any of the Council plan to attend does the Council want me to attend are two questions I have. While I am mildly interested in going,the only strong reason to have anyone from the City attend would be because Bob Long is the Minnesota League President. We can discuss the Council's wishes Monday. 111 Item 27 - City Administrator Six Month Review: This is here again already. In April the evaluation packet was sent out, but I may not have sent out a complete copy, and hence, none were returned. The format in your packet is the one the Brimeyer Group put together as part of the recruitment process the City paid for last year. The Council can discuss how or if it would like to proceed with this. I think it is a good process to go through and while I have appreciated the positive comments generally passed my way, I think Council and myself could use further understanding in roles and direction setting. Perhaps some discussion regarding this would help. Item 28-Coalition for Healthy Youth: Communities around us have been active in this program as it develops more so than anything I am aware of in Mounds View. The Mayor attended the meeting last week and may be able to brief the Council on the work taking place. While certainly a good effort, I have not gotten involved nor has staff simply due to time and priorities, but if the Council so chooses, we can become more active. Well that is enough for now. I don't mean to pile on the work, but sometimes this seems to happen. Rick Jopke starts on Monday so we should be back in the community development business full time, accept for housing. Council may also notice sometime in the next couple of weeks that we have moved all our offices around as we try to adjust to having no receptionist. Have a good weekend and see you Monday at 5 p.m., one hour earlier than normal, for the budget discussion. 111 • g7- a�7-41 C Preliminary 1998 • Budget Newsletter Information tax cap rates Tax Capacity Rates • 1995 1 1996 I 1997 1998 Tax,levy ,., (a). ,. ... '$1,593,228 $L,595,5.86 :$t:64,3453,, ,$1,732,557& Change from prior year: Dollar $2,358 $47,867 $89,125 Percent Fiscal disparit $42. b T'945 ,-,,s455,01..1807%.:1- 1449:'40-70,97-1045-1#,51.;-41047 �. _�..� ( x..�. _ _ - r _ , Change from prior year: Dollar $27,242 ($5,708' $60,635 Percent 6.40%! -1.30%1 13.50% Net tal levy ,. F. ,( x e)=(a)„ ,�b) $1,165,283 $t;-140;3991$1,193,'-07„4.111:222-,4,64— Change from prior year: Dollar ($24,884 $53,575 $28,490 Percent -2.10%i 4.70%i 2.40% Net tax capac><ty ».,. . .. .(a}. . $4,477,097 $4,619,752 $4,764,3371:$4,568;24a--; Change from prior year: Dollar $142,655 $144,585 ($196,094: Percent 3.20%1 3.10%! -4.10% Tax capacity=rate (e)=(c} (d) 26:028% 24.685%1. =25 O; f 5 .26.760% Change from prior year: Dollar -0.01343 0.00376 0.01699 Percent -5.20%! 1.50%1 6.80% • I 10/03/97 01:11 PM BDGT8MVM.WK4 tax cap rates _ avg home tax Average Home Comparisons 1995 1 1996 1 1997 1998 Average home value ... $83;100 , $85;300 .n.$89 4O0 .$92 O00 Change from prior year: Dollar $2,200 $4,100 $2,600 Percent 2.647%I 4.807%I 2.908% Residential tax formula: 1% of 1st$72,000 ($75,000 in 1998; 2% of remaining value Tax capacity value: 1st$72,000 ($75,000 in 1998) xl% $720 $720 $720 $750 Remainder x 2% 222 266 348 340 Total tax capacity value A 942 • Net tax capacity rate 26.029% 24.686% 25.062% 26.760% • $267:66_ $29 68 Change from prior year: Dollar ($1.79; $24.26 $24.02 Percent -0.730%J 9.967%I 8.974% • • 10/03/97 01:07 PM BDGT8MVM.WK4 avg home tax Cost Description I Per Month Per Year Property Tax (on average home with an estimated market value of$92 000 $24.31 $291.68 Water (84,000 gallons/year @ $1.35 per Tallon slus $3/•uarter meter readin_ fee 10.45 125.40 Wastewater $45.50 / •uarter 15.17 182.00 Street li•htin• $2.85 / •uarter 0.95 11.40 Surface water $3.99 / •uarter 1.33 15.96 Franchise fee (3% of electricity and natural _as billin_s 3.47 41.68 S i 10/03/97 01:10 PM BDGT8MVM.WK4 e e e e e e e e e I" 00 00 00 0\ .0. 0 co 00 7 0 O y .r N N M M c... a a CT 00 e 01CT010101 • t... S. wn a > a, 00 0 — 0, Nn s' co O en \O d 4= er 00 Ms "y a ^" "'N M M e}' 7 i R 64 t`y � .a u' c U 0 0, N en 'n In 00^N '0 O d' 00 L C N M 01 C' �0ET 7 0O 00 L' 7 s 01 d'- `7 01 M CO M 00 Irtit 0 —. N en en e- 4. n d 0 0 0 0 0 0 0 0 0 0 .p a 0000 pO 0 0 OO 0 N 7 VO 00 Qi N tt 10 00 0 -a y R tet 4" tn '0 N 00 et. co O�00 00 ti En co EA Q5' O N M ,a co R y > R y 7 of R O Ie e e e'\fie e e e e _O O y •T• N l 0Ntnen O \ b R N °. L b ,O C-:� .O� 0; 00 00 00 O N vRi y �t ca a c>. „, 0 y aal rn rn o s to'V) Vi VI �' er s2., Kt y O er N 1 'N5 D\ Cl co s y O b0 0o a; 0 ,D 0: N tri N -0 T a$ O ,O h R cAl ^ N N.N N M M M y a.— c O 'A R d E" GJ d) L w 0 N CO �'er N OON N EE-� O U y M. '0 CT N r....,,N N N � _ 0 v, er 0..: O er G1 00 cam» Cl. � :3 N NaM M 7 d' 7 N a rn sU.. y • Qi K ' 'C U 00 V COC c" O .� a '4- 000N VD Gt 000N VD 0 00T v, "GNoo C) Vl V1 'Cr M N N N N vi R M N O 00 N'0 Vi d' � R s. [ C7 vii .R. ss t0 N 00 OOzOs O _. .N. N •O1/40"% N R 0 CO o '. -. V'1 V' V) N j N M N M a 00 ¢, •� y \O \O \oe:MIONen ' R 0 V N N N 0 +- Q\ c3 U O 0 1` Q ,r81)---- 44 n O 'n 7 00 er c;:ng e1' 00 M t� N O ^-, y co O O 64 .0 ^ 0 "1' O V1 n:O, O M Vy N 1 O 00 O a) y so �� " �' 'fie cn a � c H "' U V 7 � N .� N R L' > •N o = c O L" a er 0 co C p;N en tr � oo 'II � 'O R o -- •� 01: ++ M 7 7 N !T._k so r 00 0\ vOi El 000 > N 7 � � noo M � riai .. M y c_Oi sczt . a�iso c N 't 1/4D O .00 N 1/4O v1 v� y v, co) cC 0 Vl N `ti' N M M d' d' of U > H O 864 N` cs c CQ N v, NCT C L Q L N O O O O Q" iO 0 0 0 p=0 0 0 0 0 O .4 8 '� o 0 c a ^y /°�t" NS M'00M00 � CT ID �w co c. Cl 0 rot 74 c T N s4 — 0 75 at U E t-, erOo) ,a..i � t� OTN7 O 00 '0 0. Ro 'a C. N 'e N co �' N en en er e}' _b�A O 0 - co 0 . - E-64 N: ,C U �o ur = O .o N 3 N j X O Vi O _, L.aN O p;i co_ co O O co Y — cot x'00 . 7 t� �a7 en M S 63 a O E 6 7I� � � n OMO'oN � 0 � ^ O3 a. s o I O O .0 s co R p COF-' M O O City of Mounds View 111 Comparison of City Property Tax $85,000 Residential House Tax City Capacity Property Change from prior Rate Tax Dollar Percent 1992 Actual 21.147% 207.24 1993 Actual 21.057% 206.36 -0.88 -0.42% 1994 Actual 25.828% 253.11 46.75 22.65% 1995 Actual 26.029% 255.08 1.97 0.78% 1996 Actual 24.686% 241.92 -13.16 -5.16% 1997 Actual 25.062% 245.61 3.69 1.53% , 1998 Proposed 26.760% , 254.221 8.61 3.51% i 111) 10/03/97 01:10 PM BDGT8MVM.WK4 6. ' 0 0 0 o 0 0 0 o G o cG W • 'Tr N l- 01 v1 d' 01 N M Gi. mP,,, mv1VD ,1Y --- NC' 00 '1" CDe4 C7 0 ..= E >4 4" U V = C Q Q PQ a r.+ ,� o 0 0 0 0 0 0 0 0 .pa 0 N. C w 000 O O ON ,-. ,-4 O ,'p rn 0\ CN ON CCJ H •. M CM^ O N "D N O. 0) 4., 1 1 © Py o o 00 0 o v1 0 0 0 0 ‹0 C j 1 "~ 'TZ .. N O M M O O O 01 VD C\ j 00 W = v') O [ v1 N v1 ON ,-+ N 00 G� O = N O ,--� N d- M 00 00 d' C I j ~ C © m v1 N N I I . . 91 0 �, o o_ 0 0 0 0 0 o p o 1 �" � � v1 � +N-' N M v1 � N � : � a C...) v1 VD N d' O N VD C Op ao � M c U Q q M O v1 VD O O M O M A — v1 O O 41 O O O CN M rt' r C ,:t o f v:.> O o 0o N vn 1 °y' r = C M v) "D M 00 00 co" o0 00 N 1 _ o ~ V E 0 cn N O N cr ch CMV V I y en ,--i .-. a I I Cn 6'D�) ER b4 I N I L I d. �, o \ \ o 0 0 0 0 o , � I V o �t N -,. O N M O VD VD CD p i j II, CV VO VO� H � MMO . DDvOC 1 I , I d I I� ¢ C7 tN N N N M 00 N 'I' O 'O I �.i y I VD r.+ VG M 00 N N 0\ O\ M 42 i 1 = §'O O� : M •ct' .--, v� 00 \D N 00 I IrT Qa `"i O 0000 dam- N co" M O ...,,� I - I •8 i I v E � N _ N M — t -a Q .t ,� 1 1 ;—, 0 ; I c, w .r ,g O O ?; O O ,g O O p . 1) • '' - C "0 M Q1 —, 7r M d' ---- co ti N ++ 017r "t' t` N M O 00 O p �/ w u C N VD M C .-, v1 00 O p oF- it ("4 d' M O s O a 0 U v c Q N vz> M N N N I O1 N a 1n .. ++ d M v1 01 M N VD M M ch =on v1 Q1 N VD VD 00 00 M - ' O II s vis 00'ccn N V '�t- 0000 N NN ,. > Q E j ins N ,-. ,- M \D ' 29 ' �I- — to I I.. i a I v ccl c-, z: 0 � � 5 O � (,� o 0 0 0 0 00 . P. 00 P.12 0 a) rn D D 0 > o o 0 0 °� `+. °... , Q; spuesno4.L a) a) 0 0 b�A e N h. C 0 O � M C4 0 as 1 °3 at ,M cw a) O C7 C7 �I . UGi. OE: � O , GF Exp 1995 I 1996 I 1997 I 1998 I Change from 1996 Actual Actual Budget Proposed Dollar Percent GENERAL FUND 1 0 General Government: City Council $74,022 $57,333 $65,734 $61,430 ($4,304 -6.5% Advisory Commissions 421 4,563 5,276 5,375 99 1.9% Office of the City Administrator 108,373 91,006 112,920 114,801 1,881 1.7% Elections 3,233 8,038 2,126 17,440 15,314 720.3% Central Services 292,703 327,895 346,685 347,702 1,017 0.3% Finance 185,913 157,545 171,107 176,230 5,123 3.0% Community Development 223,314 222,975 271,294 339,808 68,514 25.3% Total General Government 887,979 869,355 975,142 1,062,786 87,644 9.0% Public Safety: Police 1,151,969 1,249,121 1,292,849 1,341,490 48,641 3.8% Fire 157,918 173,029 185,239 177,362 (7,877) -4.3% Total Public Safety 1,309,887 1,422,150 1,478,088 1,518,852 40,764 2.8%1 Streets&Highways: Pavement Management 132,000 190,527 220,501 240,063 19,562 8.9% Snow&Ice Control 54,521 85,198 77,642 81,005 3,363 4.3% Sign Maintenance 25,469 24,827 28,583 37,176 8,593 30.1% Building&Grounds Maintenance 51,920 55,097 54,840 47,031 (7,809 -14.2% Squad&Staff Car Maintenance 47,272 52,624 52,974 45,044 (7,930) -15.0% Vehicle&Equipment Maintenance 22,102 19,925 21,777 13,351 (8,426) -38.7% Total Streets&Highways 333,284 428,198 456,317 463,670 7,353 I 1.6% Parks&Recreation: Recreation 100,989 115,240 121,815 99,198 (22,617) -18.6% Parks 341,683 261,639 258,303 254,505 (3,798) -1.5% Atheletic Field Maintenance 10,906 17,092 35,854 18,356 (17,498) -48.8% Golf Course 52,341 0 0 0 0 0.0%, Forestry 43,204 50,258 52,652 51,945 (707) -1.3% Total Parks&Recreation 549,123 444,229 468,624 424,004 (44,620) -9.5% Debt Service-Fire Bonds 88,758 92,565 90,749 87,638 (3,111)1 -3.4% Other Social Service Coordination 13,432 13,500 14,320 14,749 429 I 3.0% Miscellaneous 181,847 72,144 129,200 129,200 01 0.0% Total Other 195,279 85,644 143,520 143,949 4291 0.3%. I TOTAL GENERAL FUND $3,364,310 $3,342,141 $3,612,440 $3,700,899 $88,4591 2.4%'I IGeneral Fund Outlays I 2000 1500 Iml 1995 Actual 1000 - ans 1996 Actual oo '4 N. 1997 Budget Ie t -11998 Proposed 500 f _,,, 0 ., ry 1 t ....._, R.-, 1 General government Streets&highways Debt service , i Public safety Parks&recreation Other 10/03/97 01:09 PM BDGT8MVM.WK4 GF Exp 1 debt Fire Tax S Improvement Increment Water Golf Bonds Bonds Bonds Bonds Total Revenues: Property taxes $87,638 $0 $0 $0 $87,638 Tax increment 0 455,331 0 0 455,331 User fees 0 260,851 184,240 445,091 Interest earinings 0 63,096 124,287 0 187,383 Use of reserves 0 2,170,000 0 0 2,170,000 TOTAL $87 638 $2 688 427 $385 138 $184 240 $3 345 443 Outlays: Principal $32,010 $2,170,000 $95,000 $0 $2,297,010 Interest 55,478 516,927 289,388 183,490 1,045,283 Paying agent fees 150 1,500 750 750 3,150 TOTAL $87,638 $2,688,427 $385,138 $184,240_ $3,345,443 Outstanding Bonds Beginning of year $756,600 $8,935,000 $4,850,000 $3,090,000 $17,631,600 Less payments in 1997 32,010 (2,170,000; (95,000; 0 (2,232,990: Total outstanding 788,610 6,765,000 4,755,000 3,090,000 15,398,610 Less: Refunded debt(1) 0 0 (2,230,000; 0 (2,230,000; INet debt outstanding, end of year $788,610 $6,765,000 $2,525,000 $3,090,000 $13,168,610 (I) Amounts represent bonds that were refinanced,however,due to original loan requirements,the original bonds could not be paid off until a future date,therefore,the money from the new debt was deposited at a financial institution;interest on the money pays interest costs,and at a future date,the money pays off the original bonds. • 10/03/97 01:09 PM BDGT8MVM.WK4 debt a) C1.4 0O1Ov1OO` nO; 0 00 0OO cO 1.., Q[ O lam; d' N. O,M M •1• O O VO Ni O (f°3, = 00 O h•4 00 N O VI,Qn to VD 1Pl;O M O';O cC O= V 1 [T d N. '1 cn N M O M N!v1 }it . 4... U GQ3 ti0=N WV ct t0.N .--- Qt;N M ©Ht • F U {N r.i 'tCx itef • .kO- .--� to`. 00 l0 a%Cs ti0 t�i d 00 t.J > GsI' O r- N o0 : U c... i N i �C? .� Mact p CJ:-..t-,1t CT vO s .7. bF} t N • 4(1` U aea-4 • _ o Q\k O N ..O F I cx ^ .N 00 • 1 F.:..in-C41N y 7 =N en C 00 Qo O,OO l�00 OOl OO Ctk T QQ1.^ OV0=M Ocn d O: O O VO vY O U cn2 en' \0;'-, M O;00 N aO ,....t,....t' ."� N \O Qt;M Q\ N N 1 E _ ^' ^. :: O. [ k 03 O•i OH Cr:O O-i O t%n O4 O O;; OO N NO 'e t. ( I cn t.n t cn en vs=O §Ct U U cts N- '1.1o0 v1 Na cn v, U bg; •�O kr) O • S �N—+'N Cr.r co, Vl' Oca [ • O a»' '4,-.: 00 0014 t L ^' �=3 r""'• ':.: ''4;)iN z M ; ^ C Aro; , t MI C U • " �" � i u C 00 s 3 ' € d 3 EOQ con � W +. s 1 ms U � •E J =+ T441 nN • t C N k CJ M t% CF M t 1 U riC ,4341 x? N 0O r >a tom; L 1"'. h L U U X Ns C 0. C eel?` exCNa u I- C" �W 64 f to l . ILIJ 'CI- = 131) 0 ell) Q0 ' 4 = 44 o xc=, � -vva� - F-� o .aUu c .o c) Q c�a) viU - 3 0 aQ`.. U 0 .D O z C%] as CC C, 0 B. cC a3' 0 G1 — L: CC co � a) c�: U o_'� ayWz� � � cnCna> 1533.0 " M E o. cv 4 o F, GJ�� A U W I 0. ot€ oa . . h:000 GC o0-0 inoo eaJ P. d1�1 0-N C• e!'.t- O'-M M 7 O'.O ,O-N O '•N w CO. O-N 00 N8 O v) T v1 ,O v1:O M:O.O —' 'dr v1.T \ehs.s �h=vi r- M 0-epi •'.e41 vj `.tM` cs C - 0 N If 7 'O N T-N M-0,...:.1 d• `.N- C T 00 M O N • M N 3^ ' w bR O N '0 O'=O 00 0 u ? T:M .0-,;:ca 'O N .N bL 01 ' 'In 63a 'ea ON 0.30 00 - u �t ,If) M O:i 0 '�0,...;! °0 n',N •g \0 O':.ut 00: N C a C'i M T 'O- :rn0 0 v,.cs0 0.010 CO 0=v.0-� o 0 + O o"oC; '0 - '0o v, st w ^ iv .r1:r.-1 M In I N a M - T M M iV Q 7 t 00 `v" O .i'y.. h •^ni L OHO" k N OHO G a if3 O M a N •,,c::, A ,� $ 7 N'O Al:a ao'n = xiN MO N L' '.c5.-,:'457\O i00 c+ L i :. V'1 C n 0 1 -!:-.A W Q `':, : 00 W co 7:_ C _ W d; N 00 ]=s . 00 a Q c)!-1,..:1 t e p vi 1, 0 N _ Y v �O-g .,-,-70,7 ?- ... •,,-, ,- ;.'. N Mt y Oq ri lV d N:'C\ :O 0, T :',:i;7:N T,00 6't' ca i 0�f O vac N =N M T bH: i44 E a Ot 00 Ca u �,,.D« r LD .t. ..^ '0v1; Mt d eP , N" oDN.y t :E ..„ vE am C1i. �E C L Cco C T,\; N MR ,0 G d V p I Ui Cr. ' C C .. O 10.0 p : C im-. • C` 0Y •9 C 0 --,W C s. _1 cd _ Q Lst� cu o � 2 �Q. -01i3 . f3 000 _ 0 �_ o [>' E a b ab c. E-*: a� 06aIw ' c,,•- E Y. a °' CC "' O C7tn A U w Summary of budget modifications from the August 18, 1997 budget document • Revenues as previously budgeted 3,626,633 Property taxes -reduce total levy increase to 3% from 5.9%. (45,000) Interest- adjust to reflect change in estimated earnings 14,000 Franchise fee - was at 2%, increased to 2.5% 50,000 (Note: projection decreases fee 1/2% every two years with total elimination in 2006) Intergovernmental - increase for new aid to offset a portion of pension cost for employees 8,671 Licenses and fees - increase building permit and other fees 10,000 Other- estimated grant from Met Council for comp. plan 5,000 Adjusted revenues 3,669,304 Expenditures as previously budgeted 3,700,899 Finance - other professional services -audit fee reduction based upon new audit contract(10-13-97 agenda item) (3,000) Parks - grants - reduce contribution to Lakeside Park to reduce fund balance carryover (1,300) Adjusted expenditures 3,696,599 Revenues over expenditures (27,295) Other items raised by Council and staff: Personnel - in conjunction with the Hay study, we will evaluate the possibility of modifying the number of years it takes for an employee to move through the step system, we will present options for benchmarking positions (Stanton 5, Stanton 6, or some other system), and also evaluate the option of granting cost of living increases based upon hire date verses January 1st. It is anticipated that this information should be completed in October or early November. Personnel -possible reduction in receptionist time from full-time to one-half time, and reduction in intern position for Community Development from 2/3 time to 1/3 time; potential savings of$20,000. Personnel - consider elimination of EDA Director(total savings $65,310, General Fund share $3,266) and Human Resources Technician(total savings $38,893). Cellular phones. The following have cellular phones: City Administrator,two police investigators, Police Chief(used by others in dept), golf superintendent, building inspector, Director of Public Works and Public Works foreman. Housing Inspector. Explore the option of sharing this position with another city. This option will need to be investigated to determine whether any other city would be willing to consider • this and if so, whether an acceptable arrangement could be negotiated. Snow plowing on weekends. It was suggested that we do not plow residential streets on weekends unless we receive six or more inches of snow. This would reduce overtime. We will attempt to provide information relating to any added costs (time, equipment, and supplies) that would result from added compaction due to delays in clearing streets which may offset some or all of the overtime savings to provide a better basis for evaluating this proposal. Vehicle Replacement- delay replacement of one ton dump truck for public works at a cost of • $38,000. We will need to provide additional information relating to estimated additional maintenance costs, reduction in sales price of old unit,price increase of new unit in future year, and earnings on funds until unit is purchased to provide a better basis for evaluating this proposal. Internet webpage. The current budget includes $2,500 for this service. At the present time, our provider, Freenet, is charging a minimal amount, however, they have indicated that they do provide this service to other entities and will either start charging us higher fees or require that we move our web site to another service provider. Based upon discussions with other service providers, $2,500 is a reasonable amount. • • Cal b n V1 co 00 N NO\ n 0000 co M rr o 00 CI O C\O\ M On 00 n M 001 M OM000 O O ^100 NIN 7 M O1 en a M[�M 00 0''D O M O O 00.-+ n i n Vl © .' On 00 O 0 en enO N 'O M O ON MIM --• C7 7 7 00 N O en un 7 7 .n.I.n. M N .a (V -• 7 N N'0 O 00 en y N aN -.. 7 7 un N NI .-+ Cr: 0' 01N O 00 O Oon en ND_ O N 00 0 0 O O 00 00 0 C'0\ n Iy • 0I n n 00 '000 M00 MO V1 7 O N ^ ..I N 00 \00N i- O In 00 nhI �n G g cy� n'0 — 0100 00100 N 00 n O 100 MM C .0 p MVD 00 N 00 00 N 700 N 00 Ch .n 00 et nn 0 N a 7 N O -• M Cr) v n en -+-. v1 > Nffi'- 7 7 71: (V N N •y U 0\ b...-� 0 ND ND n M O 000 .-. 7 O NOo 00101 00 0 '2I O n:" 0100701 N 00 M O M M O Q\ V1 NN 00 .O 'n O'D 1O 'O N 00 10 0 00 O O V1 V1 00 00 N 0C L 'n V1✓0ti 00 N O - O O n V'. M N C 0010 MM O O n41 VI M 00 C1 O en 00 N 7 V1 V1 00 00 _n n 'C 0 0 N 'i', Cr N O O 7 n v - n 01 .... N 7 7 7 NIN N 69 n O O§00 cos N 'n N 7 00 O 7 Qi O ^ N O 01101 0 'a 'n -..07,17r 00 N 00 ^ 'n M 0 0 O - 01 N N N 'r O n CD4rs 00 er.,00 n er 'D O 00 01 O 'n 41 n n M y 7 a � M 70\N N M 00 'nom - O Oo0 MM N C 6N 0 - "I'7 M N O 00 M 00 N en en V) V)00 I^ 10 N `� -:^ M 00 b N� ' 7 M 7 N N M C v1 i 10 'n 7 00'O 00 7 N 00 O 7 '0 O 00 -. O C\C\ O0. T 'fl 1 '0 On CA N M N C' n M C O 00 O 00 .•-. N N 7 M en . n N 'n ^ on - '0 O er, N O n 'n 00 00 N 0 CO M a '0 N--- - -- 7 00 O 'O (:V1 01 N O N O M M O C ., CD m vl M('�4-M 'n 10 1D n 7 a0 N N 'D v'' 'O v1 .n-. N tQ0 �"' N 0\ :7 N O1 n 'n 7 001 1D 0 O O Qr 69 .lee M M 7 N N M p C U 7M --nn -•. N .--. ^0000 00 O V'' n 001 Ch 1p 0 69 c`C O 00 00 .-. O tel N n N en 0 00 un O ^ M ':N 00 00 et n'D '0 0 0 'p O 00 n N V) C� C H 4J N ' O .- �. O_1 00'p N 0 7 00 Vi 00 'n O 00 N M M 1p CO g 0 p •.� 01 N 'n V1 00 '0 en 00 N O N Vi on ID nIn M V1 .V+ N OO ^ 7 N 00 'p 7 N .M. .-.100 .-. ^I O O C M M 7 N ^ N NI 7 N ,O„ II C N O N N n C10 V'1 0010007 01 O 7 'nl 0010'1 �7 '^ ,0 o p '0 0o O co n N 7 7 M (Dion O O V1 7 N NI nI C ,� O O -O N M N -. O'O CD 00 'O O O 7 I 00;00 1 -. 00 C 70 air- N 01 N 7 N n'nlo0 '0 O 'n 001 M M N N 0 U Cr p -y 00 104.7 N 00 V'n1 M CO N O .n. 'n 10 -I [sirs. e. C U y ..,. 4 N 1LOdII N en 'p Qa 69 M (+1 7 N N N N 7 \ C 0 •N -. G .°n 9 >' N n 00 co 0070000 N O 107 O 0'O1 en en Ch y p' = 'a O1 0000 N7M0 ^ M O 00 NN 00 0 0. C CO MOS-.-. N07 'O ^'p0C' T O 010 nn N. O ^ O-_ 0 01 'n N N M O<_t N'IC S M co" oo V1 M M o0 es] I- '� 0 Nul O1 Q .,:M n N n 7 �O 00 N n V v1 ND N 00 I y �j 4� •-• ) 7 "yW�y M M 7 N N N N 7 O O 0 V .0 R 'n 01Q t'D 'O 4\ 7 - oo ODM 7i O 010 00101 'n N 669 c0i m 0 0 01 'M en N N 00 M O CO •- O 0 00 N N ^ .- > vi N NQ, -re 07 -•0\10 O n (+1 O MCA nn n C >L ,1 U U Ch U oc 00 O VrI-" O O n V1 M N O -00 Mr.M N o C 0 0 01 7 en 00 Q 00 en en ,en - 00 N n CO Vl N N n n O V1 0 N C'Q 00 ..r 0004 ( N n M '0 O en 01 ^--. 00 -. F .0 Q\ a M M 7 N N NIN d' _.._ a 0 C• k. 'n O O 7 00 O C1 v1 O 41 O O T 01 C\ N C .Q N M O *O 01 O M O 01 C1 O C1 O CV N Cr VI . 71-0,k O - M *I'. 'D O n N O n M N N O C 0 '- X 00 00 N n Q. O1 00 C1 Nb7.4, N 41'O N O o0.-. M I M I 'n 0 01 0 N H CIN p ON.Q n N ''O ND N. pN''00 �N-' co trl HON1 n1-n. OI p CO iT rn Cp M ('(S` M N N N N 'n N >' ^ „C, U U .. C O .C. .o O 9. M 'n O '0 M O N '0 N O\co O M O o0'n T O 01 7 \ Cu0CJ C C. u1 00 O M 7 01 O 'O N 7 0 7 M O N_IC'. n ICIN N I o C, CO 'D R 00 O N V1 N ?I .- V' n Oler, V1 O v1 O�I00 M N O X d c� b n 01 MNMVi oo 001( ^ utO V11N oo O 5001 CO'VI IM IN] 01N 0 U CN 'IC 7 7 01 n 'O M O O O O1 NI-, 'n 'n IC'.I 7 NINI 1N d\ = C 0 y `t:)..O N M N '0 N N 1101 001001 ^ ^ OI 0\-. CO 0. ..122; M M 101 N N N1 N V'1 '-' 0 0 C. ^ I , I 013 0 0 T.- n 0000000_ 7101 O‘.0 ,r1 7i--I 0 C o0 0 CIO 001 0 �cc 0 0 0 o C A O 10 N M 00 MI10I O 'O'O 017 - OIN( 'n OIV11 00! fr1 n �ONN00 N 'D V'' nI n 7I^ of -•101 IV- 0000 O a: C X .�- (•n_N 'nM 014' v110 N. n N' N 7nI N''n N O - nOO O 00 O 0 •y 00 7 V'' N 0'.I^ n M 01.0017 n 00 V-'I N 7 Ni 00 M ul --� M M C II II •'� t,-.' „may O N 'n --. .--. n 00 M M M 7 0o NMI^ C'. 0 .II .0 R EA ® M N I M N N I N N 7i 4'/j ^ I N O0. O O V 9 N 00 10 M'O 0\7 co N 00 010 7 'n 01 N n Cr, 00 N N N 7 0 en 0 CO 700 '0 n un 04177100 M O V1 v'1 O . . v 00 0 01 M -. n 17 n 'n n NIM ^ N 7 O O ^I 'I 0 0 v 71 100 Vi N 0110 011000 C'.I P N N17 Ni V'1n1 v C r� 0 - n O M 7 01 M n Vl 700'O 110 ^ n CO M ^ CO M �i 'n O N 7 N V1 0o N -:MI N N7 ^ N M 00� O ` O ^ M N jMI N N N N 7 tl 1 - I 1 0 0 a) CI'00 a Ono 7 'n N la-. O 'n n N n M N V1 O1 00 N N 0 0 � ' O M M'O 'n N '0 ^•-7 O I C1 N - en en -.Iv,' O' �-• C r,Q y 0'R^0o 0101 N -- n tt en 'n '0 '0N 7'OION 0 '0- U O 7 et M COY V11C 0•0--O on Vl o0 c0i M NI 00'CI'nI n ` C CO' 7 V1 N M 00 C'IM 'O n O ^1 V1I N 0'100 Vl V1I.-.I 00 'M .0 ti0 .�.. a! v)4\ N 7 -. 'cr., n N ^ '^1 N CO 01INI N 01INI 71I 0 0 ` '- COC 0 al 04 -. II N M ms .-. N I --.1r41 7 .. 0 C0. CO ,0., ;o s C C. U .'"'.. (A I I i ( > I _ I 1 yG. LI. .9U ►c. v) N . 0 N •_ `� R y se .9 U C U co 0 0 CO '� co ' C 9 ..co T 0 C N B. >. ti C W -o X L' a > C, N cl y 0 N •C CCS ` y aC.. 0'•••. ` U X y U 00'0 L 9 C.-. rn y C0 ` 0 c0i O •O 00 y X al C cC 0\ •• .: C • T O` N 0 A L .C 0 •a ry X w B. ... G ._ `'. 0 -00 C.>' ^1 C 'D_ C '0 C in d •_-'2 w O C ;a :d O .0 p k. 70 ` C ... J 0 0 '0 C O tC '-%. u N g F- .- 0 6.o ` F- �; 'Ea-o W '7 .0 `A > C. v1 C = '. G. C. RS 0 U LI 0 C 0 Cr Cr 'C C 0 X r” Q\ `j+ 4,,, 0 H a0UG] F- Op 9 a :O W vU W W vOx W 0 O 1 u 0. 0 . QN b G4 W co cit C7 O - E Ch ° 0" y o C7 W ¢ 0 t"not-••o ao M o 00 t-- oo M N O O l-- T T CZ N N v N --, 6A m 0Oco ,Ni, 00 v a v C N O o V � ,„0 0a >. N 11 M t:a .G `° C 69 O .W. o. v, w O w o n (.1 co'‘' II ■ 97 kr, ---\0,,,:1- vi ,n"via ..: I-00 00 0 VD 000 o'0o- Nen"as rZ4nN R d' 00 N d' N N 1. `t 69 • .0 OM 000 M o - v u N 00 VO O 00 [L '...OD" N O e Z "' V O N 0 00 N R' 1 ' m --� M M m c N 6 Z y g 69 O 0 0 F w M0000 oo I I I 0 O N N M O V% N 00 \O O VI VI O O nut O O cn 00 N 00 N O R N d' 69 I 1 CI 7000 N v1 on O C C... 7 VD O n 1�, RM 00 N '700 '` N�MoONoo I � AAA ti o / N M /69 C' N 00O — ip VI ^Y 0 O VI ,, b o MI ONoo00Nn I M .--, 69 -. 00 O o c- I` M O 00 00 r �O BOO Cs N O,0 en 0o N ,0 NsO or 00 M I . 69 I a cN a oo O Vl IIt' ^ '7 Moor ... O VD o 7 / ,t N N V)00 O n M N - I N M N , o 69 00 7 00 O 7 (� N 7 M O n 0 0 �• 0D 0 n 00 N ‘o CA N MN "Q , 69 Z ; � —. 000 '.0 Imo 1ridill N o0 M O 00 Cn �o o N'f 00 CC I o CO N cn VI --, CO N N CO CS -11 M N ' v w 0 1 0 0o en o0 0 o i I ..,/ 1 o 0 ,n7 '00M l N n M 00 N N I M N vi 1 I c‘ IF os cu.O "r) D\O V'I I S' I Et N N O O\ n POS 1/C�.) I ".n o n oo I 'V / N ... N N 00 M N ! c 69 �_ V) V) vn v00 O VO VD O N I I b 'n eO N (t c- i `y 0o M CO i N N I 59 O N000O I I '0r- n N O ' n n r N J os ' O se 00 Cr;.C' j 1 n -' oooo ,�. 00 N N Q N N I \ 69 I O vn ^ N ,A — O M 9 a t` R n1 N -CN r'0N0,.^1N CN r- N N N N 69 ^. a 1 rn 1 Q. 1 (ej ", , b T N o N VE z., 0 mi CI ✓_ N N C SIIOIIII)K rs a Q..0 2 'II i wn a �OQ.UDE= w I o N CA M O O Cable cornp4n Franchise� Renewal P oposäl At its August 1997 meeting,the North Suburban Cable Commission voted to :otnmend approval of the franchise renewal proposal from Meredith Cable to its member cities,Once the final franchise ordinance embodying the.roposal is drafted,It will be taken to the cities for their approval. The current franchises expire in November 1997. I Responding to the needs assessment conducted last year by the Cable Comn fission,the company has proposed to upgrade the current 450 MHz, 65-channel system to 750 MHz using hybrid fiber-coaxial cable architecture.The cumpa y plans ti offer 81 channels of analog video programming and reserve 200 MHz for additional video channels and digital services.In additio to enabli g the company to offer more programming services,the new system will provide cable subscribers with higher signal quality and more reliability. Assuming approval of the franchise by the cities,construction of th new sys m is expected to begin nett spring. Proposa Sum 'ry Subscriber System Upgrade Commitment to Community Television •glee subscriber system will be upgraded from the current 450 The company will continue to comply with existing agreements MHz,65 Channel system to a 750 MIIz system.Initially,the company will I regard g support for community television,Including: activate 550 MHz for 81 channels of analog video channels.The remaining *Agreeing to maintain the current number(12)of community Wiz will be reserved for additional video channels and digital services. access •fanners.Further the Cable Commission will retain control over the I will mean that the Cable Commission will be able to reclaim loaned entire Mhz of spectrum that currently equals one video channel.This will community channels from the company. becom very important when digital compression technology is introduced *Me system will be rebuilt using a hybrid fiber-coaxial cable becau .it will give tate Cable Commission/CIV control over whether to com- architecture.The fiber will initially be taken down to nodes of approximately press t e signal and by how much. 2,000 homes with a miniinutn 16 fiber count,but the nodes will be designed •Malntalning Its financial support of community television,which to be capable of migrating to 500 homes with a minimum four fiber count as include the operating grant for CIV North Suburbs,the annual$50,000 digital services are provided.The increased use of fiber,along with improve F..quip ent Replacement Grant,and the Scholarship Grant,which may now ments in the electronics in the system,will give subscribers more reliability be use) for student internships,The company also agreed to provide an and higher signal quality. additi' al$667,286 for equipment replacements over the 151car life of the *The system will no longer use"channel mapping"for the Basic (ranch•-,beginning with$40,000 in the first year and increasing by 1.5% programming services,so that all of the local VHF broadcast signals will be each y •r thereafter.This additional equipment funding will help defray the loatted"on channel"for all customers,regardless of whether they use a con- cost o replacing Van 1 and the DiTech switcher in Master Control and of vertex box ur nut.Pur example,if you have a cable-ready television and do makin: the transition to digital editing and playback equipment. not use a converter,WCCO-Channel 4 is located on channel 28 of the cable • system,The purpose for channel mapping is to avoid problems caused when Institutional Network the over-the-air broadcast signal leaks into the c able system.The use of fiber *The company will add to and improve electronic equipment on optics and the need fur fewer sigrral amplifiers makes channel mapping the exi ting coaxial institutional network to increase its performance and unnecessary, reliabi ty, •The company,vill interconnect this able system with other in addition,four fibers on the subscriber network will be commonly owned,adjacent systems in the metro area.This will enable pro- resew d for use by public institutions,including cities,schools,and libraries. gram sharing and other kinds of communication with other access facilities, *The company has also agreed to meet mutually acceptable tech- Oas the Ramsey/Washington Cable Commission(Suburban Community nical a d performance standards for the Institutional Network neis), *The company plans to begin design and"walkout"and to pull High Speed Data Transmission permits wlthing 90 days of the approval of the new franchise.The intent is to complete the project by November 30,2000,although they will aggressively •In addition to traditional video services,the system will be aapa• work to substantially complete construction by November 30,1999. hie of roviding high speed data services to business users. —Coralle Wilson Item No. 4 Staff Report No. 6h- 3e- Meeting Date 10-6-97 • Type of Business WK WK: Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Work Session Staff Report To: Mounds View Economic Development Authority From: Cathy Bennett, Director of Economic Development Item Title/Subject: Discussion of Appointing an Economic Development Commission Member to Fill Vacancy Date of Report: October 2, 1997 Due to a mix up in communication, applicant Steven Larson was not able to make the September work session to meet the EDA members and discuss his interest in the EDC. Since the September work session we now have two vacancies on the EDC. Resident member Delane Welsch will be resigning due to increased obligations and conflicts at work. Per Chapter 408.06, subdivision 1 of the Mounds View Municipal Code, the EDA President with the approval of a majority of the Authority Board must appoint new members for the unfulfilled 1110 portion of the terms that have been vacated. The term of Bev Tarhark,who resigned in May, expires December 31, 1998. The term of Delane Welsch, who resigned in September, expires December 31, 1997. Again,I have included the three applications that I have received to fulfill the vacancies. It would be helpful to have direction regarding who and when the vacancies can be filled since it is becoming more difficult to have a quorum at the EDC meetings. • APPLICATION FOR ADVISORY GROUPS • OR COMMITTEES Name of Group or Committee Applying For: 5 Second Choice (If Any): Full Name (First, Middle, Last): Address: 99 ( r] �o J 1 Years At This Address: 73 Years You Have Lived In Mounds View: 33 Telephone Number Home: ?gtf-7728 Work or Other: /— 30 / • QUALIFICATIONS YOU WANT THE CITY COUNCIL TO CONSIDER Skills yand Interests: v �coP� C41,7,,,,47"/C2/lc—y S ?'d7 /Ll4 . 561/,/� . • Employment, Occupation, or Other Experience: `fir( v RL--st,--ri rt J e- Memberships,Accomplishments, or Other Qualifications: Please State Your Reasons For Wanting To Serve On This Committee: Z'vTc21�;,7 I,u /Ltov 05 U r cc-i e c..o P 1 '(T / A. / I— Q= LL CS'S ‘11 LE Your response to any of the above may be continued on the back, and you may attach any other materials which you want the City Council to consider. Signature v / l Date 72/9/) The City of Mounds View is committed to the policy that all persons shall have equal access to its programs, facilities, and employment without regard to race, creed, color, sex, age, national . origin, or handicap. APPLICATION FOR ADVISORY GROUPS • OR COMMITTEES • • Committee lying For:Mame of Group or C PP Z'tb Second Choice (If Any): • Full Name (First, Middle,Last): f)1i,vi-'y L w/347i, ),)%,„<,/ Address: 6 97 an P/ea;4 i7T Years At This Address: .5" Years You Have Lived In Mounds View: S Telephone Number Home: 9 r3 LSO?7 Work or Other F • . QUALIFICATIONS YOU WANT TIE CITY COUNCIL TO CONSIDER Skills and Interests: • �4..2�. EinpIovmear, Occupation,or Other Ei-perience: .5-4---4-",t2/1141--U% 149 „Adi/A ./41-geAr- 111U 6.1-4'40 p unlificatlons: //Y Memberships,Accomplishments, or Other Q ‘1 /, G4 Pease State Your Reasons For Wanting To Serve On This C "tter• r� t 44 �� "� "`' 4, v SCC Chi 4,270-a. ti —.r`vswl d� c.4 a `'"t 1 Your response to any of the above may be continued on :he back, and you may attach any other azateriais which.you want the City Ccunci :a consider. 7), � Date Surat that ail persons wail have equal access to its • The City of Mounds Vie:v is committed to the ?oiic: o creed. ccior, se"` �Qe, aationai programs, 5.cilides, and.emoioytnent without cerrd.:a race, origin. or handicap. - , U To: Cathy Bennet, EDC and EDA June 25, 1997 From: Danny D. Moon 1111 Memberships, Accomplishments, or other; Member Mounds View 2000 Housing Committee Received Mounds View Resident Appreciation Award, Nov. 1992 • for suggesting savings on city printing costs Involved with the Hwy 10/U of M redevelopment hearings I successfully helped stopped the overdevelopment of a piece of property in my neighborhood (the New Apostolic Church project) Have proposed and changes made to City code on PUC's in residential areas of Mounds View. Reasons for wanting to serve on the EDC I feel Hwy 10 has to be the starting point of general redevelopment of the City of Mounds View. After Hwy 10, the housing stock should and needs to be addressed from many angles. I know my neighborhood is not the only one that needs help, but I have successfully reduced the assessed value of my home two years in a row by just sending in pictures of my neighborhood. All this knowing that if my home were located just 6 blocks south the value would be approx. 30% higher. Our neighbors to the south, New Brighton, is considered a desirable place to live, Mounds • View is not, I would like to helped change that perception. Thank-you for considering this application to the Economic Development Commission Canny C. Moon • APPLICATION FOR ADVISORY GROUPS 4110 OR COMMITTEES Name of Group or Committee Applying For: Second Choice (If Any): Full Name (First, Middle, Last): 17115 . �I Address:. ?4'c t o f (w 01) 4 Da: Years At This Address: Years You Have Lived In Mounds View: 2_0 Telephone Number Home: -756_447.7i Work or Other: 7 A QUALIFICATIONS YOU WANT THE CITY COUNCIL TO CONSIDER Skills and Interests: rC NSZ'Ve rc`.1),Ft i Gtc `N sNtSx .44ANtF • Employment, Occupation, or Other Experience: Memberships,Accomplishments, or Other Qualifications: 12O� r ort.[ls /rf Sac.;AF-PS mar•.\art. -�C.�Mvc_ 13F KM/A- S fE+,• -c4- d F3 C ►nn. Please State Your Reasons For Wanting To Serve On This Committee: cor-l'rt�bv�a� wter" vJD/t4-o i4,"(21tflvt;-- 4-ke si e c', 1- PA-s q'YQ7 arick , Your response to any of the above may be continued on the back, and you may attach any other materials which you want the City Council to consider. Signature �. -,,,••�.Y " 2Q Date 7/2„.7/9 The City of Mounds View is committed to the policy that all persons shall have equal access to its OP programs, facilities, and employment without regard to race, creed, color, sex, ace, national origin, or handicap. q 7 ;00-SC PRELIM NARY NEGOTIATIONS AGREEMENT • THIS AGREEMENT dated this day of , 1997 by and between THE CITY OF MOUNDS VIEW, MINNESOTA, a municipal corporation under the laws of Minnesota (the "City") and THE MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY, a body corporate and politic under the laws of Minnesota ("EDA") and ANTHONY PROPERTIES, a Texas corporation (the "Developer"): WITNESSETH: WHEREAS, the City and EDA are willing to consider rehabilitation and development of the existing building and surrounding site currently owned by the City and referred to as the Mounds View Community Center site (the "Community Center Property"); and WHEREAS, the Developer has approached the City for land immediately adjacent to the Community Center Building and two other parcels to undertake a possible development on property identified in Exhibit A (the "Project"); and WHEREAS, the City and EDA have reviewed the Project and concur that the Developer has been designated to prepare a more detailed proposal for a Project pursuant to such terms and conditions as may be established by further negotiations during the term of this Agreement • between the parties; and WHEREAS, the City, EDA and the Developer are willing and desirous to discuss the possible Project, provided that: (a) the Developer can secure satisfactory private financing sufficient for the completion of a Project; and (b) the City and EDA are satisfied that a Project is economically feasible and in the best interests of the public. NOW, THEREFORE, in consideration of the mutual covenants of the parties hereto, IT IS AGREED between the parties as follows: 1. During the term of this Agreement, or any mutually agreed extension thereof, the parties shall use their best efforts to attempt to negotiate and formulate a definitive redevelopment contract (hereinafter "Redevelopment Contract") which shall provide for the development of a Project and shall, at a minimum, contain the following: (a) Terms and conditions concerning the scope and timing of construction of the project by the Developer and of any public improvements to be constructed in connection with a Project; • (b) Provision for reimbursement of actual out-of-pocket costs for a "not to exceed" amount to be mutually agreed upon among the parties, incurred by the City and DJK127914 MEMOS-6 1 EDA in evaluating a Project and carrying out the City's and EDA's obligation under this Agreement; and • (c) Such other terms and conditions as may be agreed upon by the parties. 2. The Redevelopment Contract, together with any other agreements entered into between the parties hereto contemporaneous therewith, when executed, shall supersede all obligations of the parties hereunder and constitute the entire agreement between the parties hereto. 3. Unless otherwise extended by written agreement between the parties, negotiations hereunder shall continue for a period of ninety (90) days following execution hereof. If the Redevelopment Contract for a Project is not satisfactorily negotiated and executed within the period of this Agreement, as the same may be extended, the obligations of all parties to one another shall terminate and neither shall incur any obligation to any other, except as expressly provided herein. 4. During the term of this Agreement, the Developer shall: (a) provide to the City and EDA, within ninety (90) days of the execution of this Agreement, a preliminary design proposal and a cost analysis projection for the design and construction of a Project. The proposal shall show the location, size, and nature of a Project, including floor plans, outline specifications, and other graphic or written explanations of a Project, shall be accompanied by a time schedule for all phases of development, and shall show and be compatible with any public improvements to be constructed adjacent to or as part of a Project; (b) undertake and obtain such other preliminary economic feasibility studies, income and expense projections, or such other economic information as may be reasonably required by the City and EDA to confirm the economic feasibility and soundness of a Project; (c) within ninety (90) days of execution, submit to the City and EDA for review a Proposed Project financing plan which proposes the Developer's ability to finance a Project; and (d) furnish to the City and EDA such information or documentation as may be required by the City and EDA to identify the intended legal entity constituting the Developer, the identity of the Developer's principal owners, and the legal relationship of such principal owners. 5. During the period of this Agreement, the City and EDA shall, concurrently with the Developer's performance described in paragraph 4 herein: (a) obtain an estimate of the costs of constructing any associated public • improvements necessary to complete a Project; DJK127914 2 MU205-6 J (b) develop a financial plan for the payment of associated public • improvements, which plan shall document all public costs, projected public revenues, and bond or note financing, if any, including debt service costs, if necessary; 6. Prior to execution of this Agreement, the Developer shall pay to the EDA the sum of Five Thousand Dollars ($5,000) (the"Payment") as a deposit toward reimbursing the EDA and City for all costs incurred in preparing the Redevelopment Contract. If, during the term of this Agreement, the parties execute a Redevelopment Contract, the Payment shall be applied against the Developer's obligation under the Redevelopment Contract to pay any legal, consulting and administrative costs incurred by the City and EDA in preparing the Redevelopment Contract. If the parties do not execute a Redevelopment Contract during the term of this Agreement due to actions of the Developer, the full amount of the Payment shall be retained by the EDA as consideration for its costs in preparing this Agreement and undertaking its obligations hereunder and this Payment shall be the maximum amount of the Developer's obligations owed to the City and EDA in the event no Redevelopment Contract is executed. However, if the parties do not execute a Redevelopment Contract during the term of this Agreement due to the actions of the City and EDA, then the Developer shall be refunded any remaining amount of the Payment that has not been applied to costs incurred by the City and EDA. Except as expressly provided herein, the City, EDA and the Developer shall have no other monetary or other obligation to each other as a result of this Exclusive Negotiations Agreement if they are unable to reach agreement to the terms of an agreed upon Redevelopment Contract, or with respect to a Project, except as may be expressly provided in an agreed upon Redevelopment Contract. • • DJX12?914 MU205-6 3 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed in their names on the date first above written. • CITY OF MOUNDS VIEW By Its Mayor By Its City Clerk-Administrator MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY By Its President • By Its Executive Director This is a signature page to the Preliminary Negotiations Agreement by and among the City • of Mounds View, the Mounds View Economic Development Authority, and Anthony Properties. DJK127919 4 M0205-6 ANTHONY PROPERTIES . By Its • • This is a signature page to the Preliminary Negotiations Agreement by and among the City of Mounds View, the Mounds View Economic Development Authority, and Anthony Properties. DJK127914 MU205-6 5 Item No. Staff Report No.q 7 Jaa Meeting Date: October 6, 1997 S Type of Business: W.K. WK: Work Session;PH:Public Hearing; CA:Consent Agenda;CB:Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Michael Ulrich, Director of Public Works Item Title/Subject: Presentation of Spring Lake Road / Co. Road I Feasibility Study Date of Report: October 2, 1997 SEH has completed the feasibility study for the reconstruction of Spring Lake Road and County Road I. Spring Lake Road's jurisdictional transfer from Ramsey County to the City of Mounds View was completed in August of 1997. County Road I is currently scheduled for 1999, but will be requested to be turned back at an earlier date to coincide with the proposed reconstruction project. Steve Campbell will be presenting the report to Council. The feasibility study was based on current City policies for the purpose of calculating street width, sidewalks, costs and assessments. • (‘Lti Michael Ulrich, Director of Public Works • Item No. I 0 Staff Report No. 77- g'--OC Meeting Date: October 6, 1997 • Type of Business: W.K. WK: Work Session;PH:Public Hearing; CA: Consent Agenda;CB:Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Michael Ulrich, Director of Public Works Item Title/Subject: Review and Discussion on Current Assessment Policy Date of Report: October 2, 1997 Based recent interest in the City's current assessment, staff has contacted the communities referenced by resident, Mary Malrick, at the Council meeting of September 22, 1997. Staff has included both Ms. Malrick's memo plus staff's findings from conversations with the corresponding municipalities. More directly, staff has recalculated the Bronson Drive assessment based on lowering the existing 50%assessment to 25%, 30% and 35%. This table is at the end of this report. The storm sewer assessment was calculated based on 50% of the total cost of the project divided by the total number of acres served by the improvement. The new policy assesses each single family unit served by the trunk sewer improvement a flat one time assessment of $400. Multi-family and commercial property are assessed at$1,200 per acre. • Bronson Drive although constructed 32 feet wide, was assessed at 30 feet. Total street reconstruction cost minus 2 feet and sidewalk construction was $324,125.00. Of that amount 50% or$162,062.00 was assessed for 4254 assessable front footage, or$38.10/front footage. If the City reduces the percentage assessed to 25%the amounts would be reduced by 1/2 or $81,031.00 or$19.05 /front foot. The City would then be responsible for$243,093.00 for the street reconstruction. If this project did not qualify for MSA funding, the City would have to fund the project from general tax levy or other funds available for such projects. In this project, if the City did not have the funds necessary on hand to pay for the project and decided to raise taxes to for its share, the tax levy necessary to produce $250,000.00 would be 17%. The Storm Sewer(SS) assessment was calculated based on acreage at$1,265 per acre. The total SS project was $284,391.00, of which 50% or$142,196.00 was assessed. With the newly revised SS policy the City would have collected approximately$144,000.00. • City of Mounds View Staff Report October 2, 1997 Page 2 • Bronson Dr. Current 50% 40% 35%. 30% - 25% Project costs 30 ft road $324,124 $162,062 $129,650 $113,433 $97,237 $81,031 Levy/+funds 10.8 Levy 12.6 Levy 14.05 Levy 15.13 Levy 16.21 Levy required $162,062 $194,474 $210,691 $226,887 $243,093 Ave. 75' $38.10/FF $30.48/FF $26.67/FF $22.86/FF $19.05 /FF Frontage lot $2,857 $2,286 $2,000 $1,715 $1,429 Storm Sewer $400 $400 $400 $400 $400 Total Assess $3,257 $2,686 $2,400 $2,115 $1,829 1% increase in the levy will generate approximately$15,000.00 Sewer Main replacement assessment $1,447.00 Sewer Service replacement assessment $ 772.00 Listed below are the current assessment formulas: • Assessment cost percentages Street reconstruction 50% of 30 feet Sidewalks 0% Water and Sewer Mains replacement 50% New Water& Sewer Mains Installed 100% Water and Sewer Service Laterals 100% to benefitted properties Surface Water Improvements $400/single family, $1,200/multi-family&Commercial While citizens are requesting further revision of the assessment policy it is important to keep in mind the means of funding public improvements. Lowering the existing percentage assessed will increase the tax burden to the remainder of the community, if projects such as road reconstruction were to be funded primarily from the general fund. Without the aid of turnback funds and MSA funding to create a small reserve account to cash flow future projects,the City could be faced with higher tax levies if and when they might be possible, or bonding projects resulting in possibly higher assessment payments per year to pay back the bonds. • • One other thought regarding the possible revision of the assessment policy that might concern the residents assessed for the Bronson Drive improvements. If the policy is changed, speaking of lowering the assessment percentage, should these residents then receive a rebate, or lessen their assessment by the same amount the policy is changed to? Since this was the first project assessed • under the current policy, this may seem to be the equitable measure to take. If the policy had been in effect for 10 -15 years and many projects assessed during that time, rebates would not be as likely. If Council has any questions or comments regarding this report, please feel free to call me. Michael Ulrich, Director of Public Works • • tn o a c G7 c 0 a 0 a MI - o COD CD C" C CT r' y '� s.v "C - `r w Q- V o. oo L1 c7 00 t&'' N CD - i0 w - - 01 C 0 oo cD 01 C LA 00NO O� LA w ~ AI CA v 00 O p CD cC/101 0\ X m a `gt ax A' 6• z ,°.hcyi3 - n o '14 "d p x JN A r, n toy59y 69 7Ci > CA • `< cr c) cn (1.C1 bc" oa; �CaCoC y cn ••••• CD 0 ? • o CON cn 113 � • cn \ moc " 0 p `+� 00v. r y CD CD n o a �. 0 O ' i • ^+ w CD ° t , ,.' O cDti ''y O G '-e 0 c .-.rCCO a. (') D 'r� N nO a. C ".• oM•s , .i a = An CA CA � _ • � ON 0 (D •EA a, 0 CD 0O R° y CD C O n ca 0 CD `C � p Cn ▪ 0 R. , e0 > O aq ,Oc CD ao .,, `. 4 F n 5. 4 ec o x z 0 - C CD Co 1 rn kCA — y 0 a "� y CD co ,. a. " vi y z Eyg R° �. cn ti ,N.. n r. CD O 8 0. pa 0 AD 0 _,.... ,,, , CA .11".t 0 ca. P 0 0 O O� y CT cn ccn ,.'tet O A 9y ►t At .-?• � AD a- ,:• 0 tiCD cDGccn A y 69 * aA Ew a. CD Cl)cn c Q. oc ° O" cn . ( ' y �h,-C oo * * ... 0 O r'. CD Z CD c. CR° Cr�" y CM ' 9E t pa " Al Q.. �C AD c (D = CT c4 L. ,e (D P 0 n OCAcn CD 0 0 'O" - y O :-. DC N 'C3 y O �' N C C pa C = `C `C O c�iD ° tr. y c CD 0 A7 CDc. CD ^ r. N `0 y C0D O O CA ti.� CD'"t CA CD ° C 0 0 -t A n = 0 y 5 C) CD r ,-t Ro ¢ n n O a • A x o CO `< A V0 "0 CD s O A kC 0 Mari'4110 �.Iairic:c Spring L.a .-c Rd. Cty. Rd. I Project Mayor McCarty and Council members. The communities I called regarding special assessments are listed below. In every case I spoke with an indil,itivai who handles the assessments. What I found out is that every municipality has its own formula. The below figures and comments can only be applied as a rule of thumb. a`viien I did my polling i lidley's assessor was On vacation until Sept. 22. 1997. Because I did not confirm that information it was not included in the comments below. Communities called: White Lear Lake: Fridley New Brighton Blaine Spring Lake Park Coon Rapids Roseville Arden kills TIno Takes Comments: .F 25% of Street construction (charged by front footage) Pius storm construction {charged by acreage) less any previous storm assessments. A typical 100' lot is S1700 plus S500- S600 for storm construction. • * Their charter prevents assessments unless initiated by the residents. * Approximately 5300.00 per lot. spread over 3 years. That is the maximum benefit they feel will hold up in court. * S2100 per lot. Additional funds are pulled from the general tax. levy. Their intent is to pull funds from the whole community, which brings in a reimbursement from those residents who benefited from previous road construction but where never assessed. 4` $28.00 per front footage less any previous assessments. This particular city hires an independent appraiser to keep the assessments in line with the property values. 25% for surfacing and iuii°'o of curb and gutter. This city previously worked with an appraiser, but no longer feel it is necessary because their formula is one that works for them. A :_tic:i lot (301`,. is assessed $2-4)0. Certain roads i_ i.e.. \I.S..A.. county roads) are chargcu 1;2 of a t picai lot price. '" Arden Hills- 50%. As you know I would like the residents to feel the full monetary impact of the turn back r;ontry. This fund is set aside by Ramsey County to repair the roads at no assessment to those living along the roads. in keeping with mat spirit. in which the fund was intended. the assessment calculations should he directly: proportional to the improvements that are over and above the improvements provided by Ramsey County. • ORDINANCE NO. 600 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA AN ORDINANCE AMENDING CHAPTER 202, SECTION 202 . 09 OF THE MOUNDS VIEW MUNICIPAL CODE VIEW ENTITLED "PUBLIC IMPROVEMENTS" The City of Mounds View ordains : SECTION I Chapter 202 . 09, Subd 2 of the Mounds View Municipal Code is amended to read: Subd.2 Improvement Type and Apportionment of Cost: a. Street Reconstruction Including Curb and Gutter. The cost of street reconstruction shall be recovered by the adjusted front footage method. The front footage rate shall be determined by dividing the project cost by the total number of adjusted front feet in the project area x the individual adjusted front footage x one-half (1A) . The assessments per adjusted front foot may vary depending on the underlying zoning of a parcel . Assessments for residential properties which are on collector or arterial streets shall be adjusted so that the amount of the assessment shall be the same as if the project were constructed to residential street standards . The remaining cost shall be recovered by means of the general ad valorem property tax paid by the entire community or by other funds that may become available to the City for infrastructure cost recovery. b. Street Resurfacing. Street resurfacing is commonly known and referred to as street overlaying whereby a new bed of road material such as bituminous is installed over an existing paved road to a specific thickness . Assessments shall be determined by the adjusted front footage method. c. Sidewalk. Sidewalk improvements may. be done in conjunction with a street reconstruction or as a separate project. In any event, cost of sidewalk improvements shall be recovered by means of the general ad valorem property tax paid by the entire community or by other funds that may become available to the City for infrastructure cost recovery. • d. Sealcoating. Sealcoating, patching and cracksealing are considered general maintenance activities and the 411 expenses of such acts will be paid for by ad valorem property tax or any other funds available to the City at that time. e. Sanitary Sewer and Water Mains . Repair and replacement of sewer or water mains is usually done in conjunction with a street reconstruction project and the cost of this work should be included as part of the total major street project cost and should also be considered to be included in the rate assessed for street reconstruction. If it is determined that the repair and replacement work results in a greater benefit to some properties and not to others, the Council should consider establishing a different assessment rate based on the benefits received. f . Sanitary Sewer and Water Trunk Improvements . Trunk sewer and water mains are usually designed to carry larger volumes of flow than are necessary within an immediate property area in order to serve additional properties beyond the area of their immediate placement. Therefore, 100 percent (100%) of the cost of trunk improvements will be assessed on a unit basis to all properties within a district deemed to be benefitted from the trunk improvements . g. Sewer and Water Services . Individual sewer and water services benefit only the properties they serve and 100 percent (100%) of their cost shall be assessed to the property for which they are installed. h. Drainage Improvements . Storm drainage and ponding/basin systems are usually constructed to serve a specific drainage or "watershed" district. These drainage districts have trunk lines, which are large diameter pipes that transport large volumes of water from one or more drainage districts . Property within drainage districts that would receive benefit from a trunk storm sewer, would be assessed a unit amount of $400 .00 per lot for a single family residential lot. This amount would be determined and adjusted annually by resolution using the Engineering News Record (ENR) . Multifamily housing lots that exceed 1/3 acre would be assessed based on the number of acres, multiplied by the unit cost of $1, 200 .00 per acre . Commercial / Industrial property would be assessed based on the number of acres that are determined . to benefit from the trunk line multiplied by the unit cost of $1, 200 . 00 per acre to a maximum amount of three (3) acres or $3 , 600 .00 . The remaining cost will be paid for by the Surface Water Utility and/or by an ad valorem411 property tax paid by the entire community or by other funds that may become available to the City for infrastructure cost recovery. Should a project be initiated on a particular street that requires storm sewer laterals which would be connected to the trunk lines, the Surface Water Utility would fund these expenses . I. Special Conditions . Special consideration shall be given to the "age" of a street or utility system when determining the proportion of cost to be assessed to benefitted properties . If it is necessary to reconstruct or resurface a street or perform major repair/replacement work on sewer and water utilities, before a reasonable amount of time (10 to 12 years for resurfacing, 12 to 17 years for partial reconstruction and 17 to 25 years for total reconstruction) the assessment shall be calculated on a pro-rated basis . The remaining cost shall be recovered by means of the general ad valorem property tax paid by the entire community or by other funds that may become available to the City for infrastructure cost recovery. Section II . Chapter 202 .09 Subd 3 of the Mounds View Municipal Code is amended to Read: Subd.3 METHODS OF ASSESSMENT a. The nature of an improvement determines the method of assessment. The objective is to choose an assessment method which will arrive at a reasonable, fair and equitable assessment which will be uniform upon the same class of property within the assessed area. The most frequently recognized assessment methods are: the unit assessment, the front footage assessment and the area assessment. Depending upon the individual project, any one or a combination of these methods may be utilized to arrive at an appropriate cost distribution. City staff will consider all methods and weigh their applicability to the project and present a recommendation to the City Council in the form of a mock assessment roll (or rolls) . A description of each assessment and its corresponding policy application is presented. A separate section (Section III) will identify the appropriate match= of method with a specific type of project and analyze why each is generally used. The purpose of assessment formulas is to allocate assessed costs among benefitted properties, the formula f should result in a allocation of assessments which is reasonably related to the benefit received. Any one predetermined formula will not be appropriate in all cases because of circumstances unique to the relationship between the specific project and the specific properties benefitted. When considering an assessment method or formula for any given project, it may be necessary to combine assessment methods or to modify the methods described below. Therefore, the following description of methods of assessments should be regarded as guidelines, which may not be appropriate in all cases . b. Unit Assessment. A unit assessment shall be derived by dividing the total project cost by the number of Residential Equivalent Density (RED) units in the project area. A RED unit is defined as a single family residential unit. All platted and unplatted property will assigned RED unit values equivalent to the underlying zoning. When the existing land use is less than the highest and best permitted use, the Council may consider the current use as well as the full potential of land use in determining the appropriate number of RED units . Otherwise, the following RED chart will apply on a per unit basis, subject to adjustment by the Council for any • inequities : Single Family 1. 00 RED Duplex 1. 00 RED Condominium 0 . 80 RED Multifamily (3 units or more) 0 . 80 RED Townhouse 0 . 80 RED Commercial 2 . 00 Units Industrial 2 . 00 Units The unit approach has proven to be the best method in those instances whereby the improvement largely benefits everyone to the same degree and the cost of the improvement is not generally affected by parcel size. c. Area Assessment. The assessable area shall be expressed in terms of the number of acres or the number of square feet subject to assessment. When determining the assessable area, the following considerations will be given: (1) Ponding Assessment Consideration. Lakes, ponds and swamps may be considered a part of the assessable area of a parcel . • (2) Road Right-of-Way Assessment Consideration. Up to 20 percent (20%) of the gross acreage may be deducted for street right-of-way purposes within unplatted parcels of a five acres or more depending upon the parcel configuration and is only applicable to single family residential use. Parcels of less than five acres may not qualify and may be assessed full acreage. The reason for this size restriction is that, in most instances, parcels of less than five acres cannot support an internal public road system. (3 ) Park Dedication Assessment Consideration. When park land is dedicated as part of a residential development, as required by Subdivisions Code - Chapter 1204 . 02, the developer shall not be assessed an acreage charge on the portion of land dedicated. d. Front Footage Assessment . The actual physical dimensions of a parcel abutting an improvement (ie. , street, sewer, water, etc . ) will generally not be construed as the frontage utilized to calculate the assessment for a particular parcel . Rather, an "adjusted front footage" will be determined. The purpose of this method is to equalize assessment calculations for lots of similar size. Individual parcels by their very nature differ considerably in shape and area. The following 111procedures will apply when calculating adjusted front footage. The selection of the appropriate procedures will be determined by the specific configuration of the parcel . All measurements will be scaled from available plat and section maps and will be rounded down to the nearest lh foot dimension with any excess fraction deleted. e. Categorical type descriptions are as follows : Standard Lots Rectangular Variation Lots Triangular Lots Cul-de-sac Lots Curved Lots Irregularly Shaped Lots Corner Lots Flag Lots Double Frontage Lots The ultimate objective of these procedures is to arrive at a fair and equitable distribution of cost whereby consideration is given to lot size and parcels are • comparably assessed. • 111 i. Standard Lots. In this instance, the adjusted front footage for rectangular lots will be the actual front footage of the lot. 'Tie frontage measured shall be the lot width at the front lot line. MAIN AVE. SO' Adj. Front Footage EXAMPLES A Lot A-50' • Lot F3-90' 2. Rectangular Variation Lots. For a lot which is approximately rectangular and uniform in shape, the adjusted front footage is computed by averaging the front and back sides of the lot. This method is used only where the divergence between front and rear lot lines is 20 feet or less. • MAIN AVE- 90' V E Adj. Front Footage so' .-o• i. EXAMPLES Lot.A-90: 110 = 100' F 2 • Lot B-70 ' 80 = 75' 2 trc' eo' 3. Triangular Lots. For a triangular shaped lot, the adjusted'front footage is computed by averaging the front and back lot lines. The measurement at the back lot line shall not exceed a maximum distance in depth of 150 feet. • NI A / Ica• / Adj. Front Footage • \ EXAMPLES Lot A-100 : 40 = 70' ►Sd' A a \ C / 2 • Lot B-4!0 : 130 = 85' 3.7 2 • _'_ , 0. j �3c _ \,L _ _ - Lot C-120 0 = GO' \/ 2 • 4. Cul-de-Sac Lots. The adjusted front footage for those lots that exist on cul- de-sacs will be calculated at the midsection of the lot at the most reasonably defined and determinable position. This line will be computed by connecting the midpoints of the two side lot lines. Or, if the lots are similar in nature and configuration, a common lot width, such as the standard set back of 30' may be assigned based upon an evaluation of typical lots within the subdivision. iAdj. Front Footage V i A ► �� CIRCLE _____T______ EXAMPLES - ' Lot A- 75' IT) C Lot B-110' • \., Lot C- 80' _?r' _ ._1)0" _ _ __�(� • A 6 • . • 5. Curved Lots. In certain situations such as those where lots are located along meandering trail system streets, read patterns create curvilineal frontages. In such Instances, the adjusted front footage will be the width of the lot measured at the midpoint of the shortest side lot line. /_ r A N`\ �`. / �. Adj. Front Footage T -,...',. ' r- \• EXAMPLES I' f Lot A- 70' • /� J ___r 0- - - \ Lot\ - 90' . ( / r1 __Q� --- '1 Lot C-150' , , / / • • • 6. Irregularly Shaped Lots. In many cases, unplatted parcels that are legally described by a metes and bounds description are Irregular and odd shaped. The adjusted front footage will be calculated by measuring the lot width at the 30 foot building setback line. MAIN A V -. Adj. Front Footage �.f EXAMPLES ,,,r � 1.1.E �_ -_ - �- - - - —- - —-- Lot A-115' Lot B-1,10' A L Lot C-125' • • • • 7. Corner Lots a) On a corner lot, 100 percent (100%) of the adjusted front footage of the short side will be assessed and 25 percent (25%) of the adjusted front footage of the long side will be assessed for improvements benefitting the respective sides. The length of the property sides and not the orientation of the principal building shall determine adjusted front footage in this case. A series of.lots (two or more) under common ownership shall be considered as one parcel or lot for determining which is the short or long side of a property. However, this shall only apply to series of lots on which only one principal building is situated. Adj. Front Footage EXAMPLES i I Lot A-Side 1 = /13.75' Side 2 = 95' • Lot B-Side 1 = 87.5' �a• Side 2 = 125' r • • C • ,AA IM AV/ c. =%- - ' ) • b) . General Commercial Zoned Corner Lots. -granted booauco of the higher inhororit proporty value acrcooiated will► .nrid inc.luctrial park intcrcoctiono. Tile adjusted front footage shall be the entire frontage. - - - - - - - ' _ - CMvel Adj. Front Footage EXAMPLES /• Lot A- 1.88' /5 i --------: i..ot 13-3J0' 3 0 r.A, , !la a r IL I 3) ►ss• MA Il.•1 Sao' ... V/E. - • i 8. Fiaa Lots. Properties .which utilize a narrow private easement or maintain ownership of access to their property exceeding a minimum length of 125 feet, thereby having a small frontage on a street, will be assigned an adjusted front footage of 75 feet. This.dimension is consistent with the subdivision ordinance which prescribes such length as the minimum lot frontage along a public roadway. The adjusted front footage for flag lots whose driveway access is under 125 feet will be measured at the building setback line from the access terminus. Adj. Front Footage EXAMPLES Lot A-75' _c'' P.t A I T I AVE. Lot B-00' -r• • I —I30 'o L -ti I j! I -0' • • J. Double Frontage Lots. If a parcel, other than a corner lot, comprises frontage on two streets and is eligible for subdivision, then an adjusted front footage assessment will be charged along each street. For double frontage lots lacking the necessary depth r for subdivision, only a single adjusted front footage will be computed. The frontage with driveway access to front of house, shall be assessed.• Adj. Front Footage NI A I PI AV E. ILIA IN A_ V L EXAMPLES ►►U• —" so' Lot A-220' Lot B- 00' O171 1.1 r 6_ • 110' • • • • •111 SECTION III . This ordinance is effective thirty • days after its publication. Introduced and read by the City Council of the City of Mounds View on April 28, 1997 . Read and passed by the City Council of the City of Mounds View this 12 day of May, 1997 . ATTEST: MAYOR (SEAL) ADMINISTRATOR • APPROVED AS TO FORM: CITY ATTORNEY • Item No. /1 Staff Report No. 97-0?--7C,. Meeting Date: October 6, 1997 Type of Business: W.K. • WK: Work Session;PH:Public Hearing; CA: Consent Agenda; CB:Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Michael Ulrich, Director of Public Works Item Title/Subject: Review and Discussion of the Pavement Management Program Date of Report: October 2, 1997 Staff will present the pavement management program and explain it's function. Most of the data utilized for the reports will be based on the survey completed in 1995. As mentioned at an earlier date, staff just received the updated version of the program and necessary hardware required to operate the system. Even though the information is two years old it will still give a relatively accurate view of the pavement infrastructure and the future needs for maintenance and reconstruction. Staff will present the report at the meeting, which will allow for recent data to be entered into the program. • Michael Ulrich, Director of Public Works • I Item No. 1?— Staff Report No. ?7-,g20-FC... Meeting Date: October 6, 1997 • Type of Business: W.K. WK: Work Session;PH:Public Hearing; CA: Consent Agenda; CB:Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Michael Ulrich, Director of Public Works Item Title/Subject: Consideration of Special Assessment for Sanitary Sewer Service Repair Date of Report: October 2, 1997 Routine maintenance of the sanitary sewer system performed by City staff reviled a broken residential service connection on Sherwood Road. The residency is owned by Ms. Jean Kamer. Ms. Kamer was notified of the required repair, and the need for immeadiate attention in this matter. Ms. Karner was expericening difficulty in finding a contractor to perform the repair. Tracy Juell assisted her in attempting to obtain a contractor to perform the repair as soon as possible. The hasty repair was required due to the fact that subsoil sand was leaking into the service and accumulating in the sewer main. This condition would eventually cause a backup of both the residential service and the City sewer main. A sink hole or collapse of the roadway is also extremely possible. III Ms. Kamer indicated that she was not financially capable of funding the repair costs. At this time, I explained to her the possibility of being specially assessed for the repair. She agreed to the strategy and sent me a short letter requesting such. I have revised an earlier document utilized for special assessments levied for singular residential sanitary sewer service hookup that occurred in 1995. It is attached for Council's review. The document essentially is a petition and waiver agreement signed by both parties. A resolution will be required also stipulating the terms of the assessment. The City attorney is reviewing the document also and at the time of this report has yet to return an approved copy. I anticipate receiving the final document prior to Monday's meeting. Ms. Kamer is requesting a deferred assessment in accordance with the Municipal Code. Since Ms. Karner currently is 64 years of age, the attorney is researching the possibilities associated with this request. Staff will present a resolution for Council's consideration at the October 13, 1997 meeting. If Council has any questions or concerns regarding this issue, please feel free to call me. r ,fri/- / ,, (,- ,,,,..,- ( IIIMichael Ulrici, Director of Public Works PETITION AND WAIVER AGREEMENT • THIS AGREEMENT made this day of October, 1997, by and between the City of Mounds View, a Minnesota municipal corporation (the"City"), and Jean M. Kamer, a single person(the "Owners"); WITNESSETH: WHEREAS, the Owners are the fee owners of certain real property (the "Subject Property:) located in the City the address of which is 2616 Sherwood Road; and WHEREAS, the Owners are required to repair the sanitary sewer service to the Subject Property; and WHEREAS, the responsibility of the repair and maintenance of the sanitary sewer service to the City sewer main is that of the Owner, (Mounds View Municipal Code, Chapter 907.13); and WHEREAS, the immediate repair of the service is necessary due to the possible negative impact to the health, safety, and welfare of the community; and WHEREAS, the Owners with the City to perform the Improvement Project without • notice of hearing or hearing on the Improvement project, and without notice of hearing or hearing on the special assessments levied to finance the Improvement Project, and to levy 100 percent of the cost of the Improvement Project against the Subject Property; and WHEREAS, the Owner is requesting to obtain a deferred assessment in accordance with the Mounds View Municipal Code, Chapter 202.13; Subd. 1.; and WHEREAS,the City is willing to construct the Improvement Project in accordance with the request by the Owner and without such notices or hearings, provided the assurances and covenants hereinafter stated are made by the Owners to ensure that the City will have valid and collectable special assessments as they relate to the Subject property to finance all of the costs of the Improvement Project; and WHEREAS, were it not for the assurances and covenants hereinafter provided,the City would not construct the Improvement Project without such notices and hearing and is doing so solely an the behest, and for the benefit, of the Owners. • PETITION AND WAIVER AGREEMENT • PAGE TWO OF THREE NOW, THEREFORE, ON THE BASIS OF THE MUTUAL COVENANTS AND AGREEMENTS HEREINAFTER PROVIDED, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS: 1. The Owners hereby petition the City for construction of the Improvement Project. 2. The Owners represent and warrant that they are the owners of 100 percent of the Subject Property, that they have full legal power and authority to encumber the Subject Property as herein provided, and that as of the date hereof, they have fee simple absolute title in the Subject Property. 3. The Owners request that 100 percent of the cost of the Improvement Project be assessed against the Subject Property. The Owners understand and Agree that the current estimated cost of the Improvement Project is $2,600 but that the cost of the Improvement Project will be determined in accordance with Minnesota Statutes, Chapter 429 and standard City practices and that such cost may be as much as $3,000. The Owners further understand and agree that the City does not waive and rights to levy special assessments against the Subject Property in an amount in excess of$3,000 in the event actual project costs which may lawfully • be assessed pursuant to Minnesota Statutes, Chapter 429, exceed said amount. Special assessments shall be levied against the Subject Property. 4. The Owners waive notice of hearing and hearing pursuant to Minnesota Statutes, § 429.031, on the Improvement Project, and notice of hearing and hearing on the special assessments levied to finance the Improvement Project pursuant to Minnesota Statutes, § 429.061, and specifically request that the Improvement Project be constructed and special assessments levied against the Subject Property therefor without hearings. 5. The Owners waive the right to appeal the levy of special assessments in accordance with this Agreement pursuant to Minnesota Statutes, § 429.081, or reapportionment thereof upon land division pursuant to Minnesota Statutes, § 429.071, Subd. 3, or otherwise, and further specifically agree with respect to such special assessments against.the Subject Property or reapportionment that: a: Any requirement of Minnesota Statutes, Chapter 429 with which the City does not comply are hereby waived by the Owners; b. The increase in fair market value to the Subject Property resulting from construction of the Improvement Project will be in an amount at least • equal $3,000, and that such increase in fair market value is a special benefit to the Subject Property; PETITION AND WAIVER AGREEMENT PAGE THREE OF THREE c. Assessment of 100 percent of the cost of the Improvement Project against the Subject Property is reasonable, fair and equitable and there are no other properties against which such cost should be assessed; and d. The Owners further specifically waive notice and right to appeal reapportionment of such special assessments upon land division pursuant to Minnesota Statutes, § 429.071, Subd. 3. 6. The Owners understand and agree that the City may provide for the payment of such special assessments in installments bearing such interest as may de determined by the City Council. The decision regarding the period of time over which the special assessments may be paid and the interest rate to be applied is in the absolute and sole discretion of the City Council, subject only to limitations imposed by law. IN WITNESS WHEREOF, the undersigned have set their hands as of the date above written. I Jean M. Kamer CITY OF MOUNDS VIEW By Duane McCarty, Its Mayor By Charles S. Whiting, Its Clerk-Administrator • • 4:2) ;, • . r14; o f! ,;. 77• Item No. 13 Staff Report No.q 7-aDa.ctC. • Meeting Date 10-6-97 Type of Business WK WK: Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Work Session Staff Report To: Mounds View Economic Development Authority From: Cathy Bennett, Director of Economic Development Item Title/Subject: Discussion of Expansion of the Mermaid Date of Report: October 2, 1997 Chuck and I have been meeting with Dan and Charlie Hall over the past few month discussing the proposed expansion of the Mermaid. The Hall's are committed to building a 500 room conference facility and have submitted a deposit of$1,000 for consideration of tax increment assistance on the project. The agreement would help the City cover consulting fees in evaluating the amount and level of tax increment assistance available on the project and what the need is in providing such assistance (establishing the"But For" Test under TIF Legislation). We have received preliminary estimates for value on the project but have some policy issues that we would like to discuss with the EDA prior to proceeding any further. Dan and/or Charlie will be at the meeting to give a brief summary of what is needed from the City to enable the project to be a success. • • Deposit Agreement for Evaluation of Tax Increment Assistance By and Between the Mounds View Economic Development Authority and Mounds Vista Inc This agreement made as of the day of S' , 1997 by and between the MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY, a body corporate and politic, orgsni7ed and existing under the laws of the State of Minnesota(the "EDA") and Mounds Vista Inc. (the "Applicant"). WITNESSETH: WHEREAS, the EDA has the powers provided in Minnesota Statutes, Sections 469.124 to 469.134 and 469.090 to 469.108 (collectively, the"Act"); and WHEREAS,pursuant to and in furtherance of the objectives of the Act,the EDA has undertaken a program to promote development and redevelopment of certain land within the City of Mounds View and in connection is engaged in carrying out the Mounds View Economic Development Project as detailed in EDA document dated 5/9/94(the"Project") within the City; • and WHEREAS, the redevelopment and development of property within the Project by private developers are stated objectives of the Project Plan. NOW THEREFORE, in consideration of a mutual covenants made herein and for other good and valuable consideration set forth in the Agreement, the parties agree as follows: Section 1. Applicant agrees to provide the EDA with a deposit of$1,000 for the EDA's consultants to investigate the feasibility of providing Tax Increment Financing assistance to Applicant for the redevelopment of properties located at the corner SW of Highway 10 and _ County Road H (the "Property"). If the EDA incurs additional expenses directly related to the feasibility of providing Tax Increment Assistance to Applicant beyond the$1,000,prior to the execution of the Developer's Agreement,the EDA shall notify Applicant in writing and Applicant will be required to deposit additional funds as a condition of the EDA entering into any such Development Agreement. Section 2. If the project is approved and Applicant proceeds with the project,the EDA shall reimburse Applicant's deposit to the extent permissible under the TIF Act. If Applicant does not proceed with the redevelopment of the Property due to the decision of either the EDA or Applicant, the EDA shall reimburse Applicant for the unused portion of the deposit. 41 t i • Section 3. Nothing contained in this agreement shall in any way obligate either party to proceed with the redevelopment of the Property or otherwise enter into a Development Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY Al BY: r,,.f iL .ADUANE MCCARTY II ITS PRESIDENT BY: 0.0S1-'t.4.,—A , _ _,,, CATH` r$ENNETT ITS EXECUTIVE DIRECTOR • STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me on this `/ day of ibliAxht,t; , 1997, by Duane McCarty and Cathy Bennett, the President and Executive Director respectively of the Mounds View Economic Development Authority named in the foregoing instrument. • &4.6 Nota6,, -,,.. „,,,e_h_y_,r_ ry Public / ■ ` = :-. TRACY SANCHEZ -.7-1.1r.."-• ROTARY PUIUC•MINNESOTA • y w C+■eissise Expos Jae.31.2000 a i • Mounds Vista Inc. BY: (" 7_,.A4_1-e2- •: .''9)7,‘,G, ITS: .. >'--- ��,c��!�_ J STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me on this q day of , 1997, by f_'h ¢e t ,the iap'Std�.7` of e Mermaid Corporation named in the foregoing instrument. dkiv__..th,5 • NotaryU°ublic i s s �:, ' . TRACY SANCHEZ trS,''' NOTARY PUBLIC-MINNESOTA lay CONallSibi Emits Jaa.]t,2000 0 LL Item No. �T Staff Report No. 97-o;).3O C Meeting Date 10-6-97 • Type of Business WK WK: Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Work Session Staff Report To: Mounds View Economic Development Authority From: Cathy Bennett, Director of Economic Development Item Title/Subject: Discussion of Draft Purchase Agreement for 2625 Highway 10 Date of Report: October 2, 1997 At a special work session on August 18, 1997 the City was presented with the preliminary discussion regarding a commercial development that included EDA owned land at 2625 Highway 10. With a favorable response, Told Development has proceeded to draft preliminary site plans and has negotiated purchase agreements for several homes on Eastwood. Told Development met with City staff to discuss the process involved for a rezoning, revision of the comprehensive plan, major subdivision, vacation of a portion of Eastwood and Development Review. • Attached is a draft purchase agreement prepared by Told Development and reviewed by Real Estate attorney Larry Wertheim of Kennedy& Graven. Told Development is proposing to purchase the property for$125,000 with$10,000 earnest money as a deposit. Mr. Wertheim made revisions to the draft purchase agreement and is comfortable with the agreement but felt that the EDA should be aware of and discuss a couple of policy items. The purchase agreement contains a review date of 180 days to enable Told Development to perform their due diligence on the property. As the agreement currently is written Told will have the option to extend the review date for two consecutive periods of 90 days each with the deposit of $5,000 for each extension. A purchase agreement is typically written which would allow the seller to retain a portion or all of the earnest money if the sale does not occur as compensation for taking the property off the market. It is of Told Development's understanding that since this proposal requires commitments for land assembly and cooperation with the City and significant risk and costs are going to be incurred by the developer to perform the due diligence then they should not be obligated to risk additional funds if the proposal does not go though. Told feels that they are offering a purchase price above market value to compensate the EDA for their insight in purchasing the property. My suggestion would be to at least add a provision that if the buyer terminates the agreement by reason of any of the contingencies then the EDA would be eligible to at least collect out-of-pocket expenses (attorney fees) for the transaction relating to the sale. • The other item the EDA may want to address is an assurance that the property would be protected against such uses in the future such as adult-book store. We have not exactly worked City of Mounds View Staff Report October 2, 1997 Page 2 out how to legally tie this to the land but may be able to tie it to the deed or other legal document. Review of this item was on the EDC agenda in September. Since there was not a quorum, the members present were just given an overview of the proposal. The members that were present felt that from an economic standpoint the City would gain with an above market purchase price and the ability to collect commercial taxes on the parcel. I did a quick calculation of the increase in the tax base on a$2 million project deducting the taxes currently paid by the four single family homes. Current total taxes paid: $5,023 Taxes on$2 million commercial building: $123,250 Total Net gain: $118,227 Mr. Robert Cunningham of Told Development will be at the work session to present the proposal and give an update on the preliminary schematic plans for the site. • • FILE No. 038 10/41 '97 15:55 ID:TOLD DEVELOPMENT 612 420 7574 PAGE 13 • PURCHASE AGREEMENT THIS AGREEMENT is made and entered into as of this , day of October, 1997, by and between THE CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY (hereinafter "Seller") and MERIDIAN PROPERTIES REAL ESTATE DEVELOPMENT LIMITED PARTNERSHIP, a Minnesota limited partnership (d/b/a TOLD Development Company), its successors, assigns or designees (hereinafter "Buyer"). 1. SALE AND PURCHASE. Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, certain real property located at County Road I and Highway 10, legally described on Exhibit "A" attached hereto, City of Mounds View, State of Minnesota(the "Property") as depicted on Exhibit "B" attached hereto consisting of approximately .67 acres, as determined by survey. 2. PURCHASE PRICE. The Purchase Price of said Property shall be One Hundred Twenty-five Thousand and NO/100 Dollars ($125,000.00), payable as follows: 2.1 Ten Thousand and 00/100 Dollars ($10,000.00) "Earnest Money" in the form of an irrevocable letter of credit, to be deposited with Seller within five (5) business days after acceptance of this Agreement by Seller. The sole duties of Escrow Agent shall be those described herein, and escrow Alk shall be under no obligation to determine whether the other parties hereto are complying with any requirements of law or the terms and conditions of any other agreement among said parties. Escrow Agent may conclusively rely upon and shall be protected in acting upon any notice, consent, order or other document believed by it to be genuine and to have been signed or presented by the proper patty or parties. Escrow Agent shall have no duty or liability to verify any such notice, consent, order or other document, and it sole responsibility shall be to act as expressly set forth in this Agreement. Escrow Agent shall be under no obligation to institute or defend any action, suit or proceeding in connection with this Agreement unless first indemnified to it satisfaction. Escrow Agent may consult with respect to any question arising under this Agreement and shall not be liable for any action taken or omitted in good faith upon advice of such counsel. Any interest on said Earnest Money, if converted to cash, shall be for benefit of Buyer. The Letter of Credit described herein (and any replacements thereof) shall: (a) have an expiration date no earlier than nine (9) months from the date of this Agreement; (b) be issued by Riverside Bank; (c) be an irrevocable and unconditional sight draft letter of credit; (d) require payment to Seller upon presentation of the Letter of Credit together with an affidavit of Seller stating that either Buyer has breached the terms of this Purchase Agreement or Buyer has failed to replace the Letter of Credit at least thirty (30) days prior to its expiration with a replacement Letter of Credit which satisfies the terms and conditions described herein. 2.2 At Closing, Buyer shall pay in cash or certified funds or by wire transfer of • immediately available funds the entire Purchase Price of One Hundred Twenty-five Thousand and NO/100 Dollars ($125,000.00), less prorations or credits (as defined in Section 7), and the Letter of Credit shall be returned to Buyer. FILE No. 038 10/01 '97 15 55 I D:TOLD DEVELOPMENT 612 420 7574 PAGE 14 0 3. SURVEY:TITLE EXAMINATION. Y Buyer will obtain a survey of the Property • which (a) shall be certified as of a current date in favor of Buyer and Old Republic Title Insurance Company, in accordance with the "Minimum Standard Detail Requirements for Land Title Surveys", Class A Survey 1992,jointly established by the American Congress on Surveying and Mapping and The American Land Title Association, (b) shall be prepared by a registered land surveyor for the State of Minnesota with his or her seal affixed and dated, (c) shall contain a legal description identical to that set forth in the tide insurance commitment described below, and(d) shall otherwise show matters and contain a certification satisfactory to Buyer in its sole discretion. Seller agrees to provide a copy of an existing 1995 survey of the Property to Buyer as soon as possible after execution of this agreement. Buyer will, within ten (10) days of receipt of a proper legal description from Seller, for the cost of the title insurance policy as described above, obtain a current commitment for a policy of title insurance(ALTA-B, 1970), together with copies of all items referenced therein, issued by Old Republic Title Insurance Company and showing marketable title vested in Seller, subject only to such encumbrances as Buyer may accept in its sole discretion. Buyer will place its application for such commitment with the main office of Old Republic Title Insurance Company at 400 Second Avenue South, Minneapolis, Minnesota 55401, Attention: Karen Butler, (612)371-1111. Seller shall provide to Buyer a copy of any policy of title insurance for the Property which Seller may have. Such commitment will include (a) proper searches covering bankruptcies, State and Federal judgements and liens, taxes and special assessments, and (b) any endorsements required by Buyer, together with copies of each and every document referred to in such commitment. Buyer shall be allowed thirty (30) days after receipt of last • to be received of said survey and said commitment for examination of said title and making of any objections thereto, said objections to be made in writing or deemed to be waived. In the event Buyer closes on the purchase of the Property, Buyer shall receive a credit for the cost of the title commitment only, against the Purchase Price. If any title objections are so made, the Seller shall be allowed 60 days to make such title marketable. Pending correction of title the Closing shall be postponed, but upon correction of title and within 10 days after written notice to Buyer, the parties shall perform this Agreement according to its terms. At Closing, said commitment shall be endorsed to update the effective date through the date of recording, to delete standard exceptions for mechanic's liens, survey and parties in possession and to show Buyer as fee owner of the Property. If said title is not marketable and is not made so within 60 days from the date of written objections thereto as above provided, Buyer, at its sole option, may by written notice to Seller either (i) declare this Agreement null and void or (ii) close this transaction. If this Agreement is made null and void by reason of either Seller's or Buyer's failure to make title corrections pursuant to this Section 3, neither party shall be liable for damages hereunder to the other, and all earnest money theretofore paid by Buyer shall be refunded. If title to the Property is found marketable or is so made within the above-described time • periods, and if the Buyer is in default pursuant to this Agreement and continues in default for a period of 10 days, then in that case Seller may terminate this Agreement, and on such termination, all payments made upon this Agreement shall be paid to Seller pursuant to Sectietl 2, time being of the essence hereof. FILE No. 038 10/01 '97 15:56 ID:TOLD DEVELOPMENT 612 420 7574 PAGE 15 • 4. CONDITIONS.PRECEDENT. In the event any of the conditions set forth in this Section 4 shall not have been fulfilled on or before the "Review Date" as defined hereinafter, Buyer, in its sole discretion, may terminate this Agreement by giving written notice thereof to Seller on or before the Closing Date, specifying in such notice the condition which has not been fulfilled, and thereupon all earnest monies shall be paid to Buyer. The fulfillment of the conditions of this Article 4 are for Buyer's sole benefit. Buyer may, in its sole discretion, waive (conditionally or absolutely) the fulfillment of any one or more of the conditions, or any part thereof, specified herein, but only by giving written notice thereof to Seller at any time and from time to time on or before the Closing Date. Any failure of Buyer to provide such written notice shall not be deemed a waiver of the fulfillment of any such condition. For purposes hereof, the Review Date shall be one hundred eighty (180) days from the date of this Agreement. In the event Buyer is unable to satisfy the conditions set forth herein on or before the Review Date, Buyer, upon providing written notice to Seller on or before the Review Date, shall have the right to extend the Review Date for two (2) separate periods of ninety (90) days each, upon deposit of a promissory note of$5,000.00 as additional Earnest Money for each such extension ("Additional Earnest Money"). Such Additional Earnest Money shall be applicable to the Purchase Price but refundable only in the event of a default of Seller. 4.1 Buyer shall have been able to obtain all necessary governmental approvals and permits with regard to all applicable environmental, construction, zoning, platting, signage, subdivision, lot split, D.O.T access and turn lane agreements and other land use laws, ordinances and regulations and *codes for the construction and use of the Property (and adjacent property) as Buyer intends. 4.2 Buyer shall have been able to determine that all necessary utilities, including, but not limited to, natural gas, sanitary sewer, storm sewer and water, are located at the property line and are of adequate capacity to serve the development of the Property contemplated by the Buyer. 4.3 Buyer shall have been able to conduct such soil tests, environmental assessments or other tests or investigations as are consistent with its interest hereunder, the results of which shall be acceptable to Buyer in its sole discretion. 4.4 Buyer shall have been able to determine the costs of the site for new construction and the feasibility of the proposed project based upon said costs and said costs are acceptable to Buyer in its sole judgement. 4.5 Buyer shall have been able to make application to applicable governmental units and/or quasi-governmental entities and to obtain any and all governmental or quasi-governmental aid or subsidies necessary, in Buyer's sole judgement, for development of the Property in an economically feasible manner. 4.6 Buyer shall have been able to enter into a net lease agreement with an anchor tenant of its choice on terms and conditions acceptable to Buyer in its sole discretion. • 4.7 Buyer shall have been able to obtain financing for the project on terms and conditions acceptable to Buyer in its sole discretion. -3- FILE No. 038 10/01 '97 15:56 ID:TOLD DEVELOPMENT 612 420 7574 PAGE 16 4.8 Buyer shall have entered into binding purchase agreements with the owners of • certain adjacent property and can simultaneously close on the purchase of the Property and said adjacent parcels. 4.9 Buyer shall have agreed to the form of quit claim deed to be given by the Seller. 4.10 In the event Buyer fails to receive approval of the development of the Property at a public hearing, this Agreement may be terminated by either Seller or Buyer. Seller shall cooperate with Buyer in accomplishing the conditions precedent contained in this Section 4, including but not limited to Seller's providing or obtaining any relevant information, certifications or applications, investigating the history of the Property and executing documents but said cooperation is not intended to apply to matters before the City of Mounds View. Buyer agrees to provide copies of all relevant information that Buyer obtains during its inspection period other than information regarding potential tenants and users of the Property or financial or proprietary information about Buyer. Seller shall provide copies of soil tests, compaction tests and any other engineering reports applicable to development on the Subject Property. 5. SELLER'S WARRANTIES AND COVENANTS. 5.1 Seller has not received (a) any written notice from any state or local authority s having jurisdiction over the Property of any violation of any law, regulation, ordinance or code affecting the Property, or (b) any written notice of any liabilities or threatened litigation or anticipated condemnation with respect to any part of the Property. 5.2 To the best of Seller's knowledge which knowledge for purposes hereof is limited to the actual knowledge of Catherine Capone Bennett without additional inquiry (a) there does not exist, in or under the Property, any contaminant, pollutant, toxic, or hazardous waste, the release of disposal of which is regulated by any law, regulation, ordinance or code, including, but not limited to asbestos, PCB's, urea formaldehyde, and oil products(collectively "Contaminants"), (b) the Property has not been used as a sanitary landfill, dump, industrial waste disposal area, or any other similar usage; (c) no hazardous or toxic materials, as such terms are defined under applicable local, state and federal laws and regulations, exist on the surface or subsurface of the Property or in any surface waters or ground waters on or under the Property; and (d) it is in compliance with all applicable environmental laws, regulations, ordinances and orders relating to the Property. 5.3 Seller shall indemnify and hold Buyer harmless from and against any claim, loss or expense, including reasonable attorneys' fees, arising out of any material breach of the representations, warranties and covenants contained in this Section 5. 5.4 Seller represents and warrants that no person has any option to purchase all or any portion of the Property, nor shall any person have any right of first refusal or similar right with respect to all or any portion of the Property. Seller may not, without Buyer's prior written consent (which shall -4- FILE No. 038 10/01 '97 15 57 I D:TOLD DEVELOPMENT 612 420 7574 PAGE 17 • not be unreasonably withheld) convey, encumber or assign the Property or its rights under this Agreement. 5.5 Seller has no notice or knowledge of any planned or commenced public improvement which may result in special assessments or otherwise materially affect the Property or government agency or court order requiring repair, alteration or correction of any existing condition. Except as specifically set forth hereinabove, Buyer is taking title to the Property in "as is" condition. The representations, warranties and covenants set forth in this Section 5 shall be deemed remade as of the closing of the sale and purchase contemplated herein (the "Closing") and shall, • together with the indemnity obligation contained herein, survive Closing. 6. CLOSING. Unless changed as provided herein, the Closing shall be held at the office of the Title Company in Minneapolis, Minnesota or in the office of Buyer's lender's attorney, as designated by Buyer, on or before the date thirty (30) days after the Review Date ("Closing Date"). Buyer shall have the option to accelerate the Closing Date upon thirty (30) days prior written notice to Seller. 6.1 At Closing, Seller shall deliver to Buyer (a) a quit claim deed to the Property subject only to those exceptions to title which Buyer has accepted pursuant to Sections 3 and 4.10 and which describes the Property by legal description identical to that shown on the title insurance commitment and survey, (b) evidence satisfactory to the title company that the deed and other closing documents have been validly authorized, executed and delivered by Seller, (c) an affidavit certifying that (i) there are no mortgages,judgment liens or other encumbrances of any nature whatsoever affecting the Property except as set forth in the title insurance commitment; (ii) there are no rights of possession, use or otherwise, outstanding in third persons by reasons of unrecorded leases, land contracts, sale contracts, options or other documents, and (iii) no other unpaid-for improvements have been made, or materials, machinery or fuel delivered to the Property within the one hundred-twenty (120) days immediately preceding the date of closing, which might form the basis of a mechanic's lien upon the Property, and (d) all other documents required by this Agreement or by the Title Insurance Company to issue a policy in the form described in Section 3. 6.2 At Closing, Buyer shall pay to Seller the balance of the Purchase Price pursuant to Section 2. The following adjustments shall be made at Closing: 6.2.1 Seller shall pay all delinquent real estate taxes, including penalties and interest due and payable, and all agricultural use tax recoupment for years through theyear of closing, if any, and all special assessments due, pending or levied. Seller shall pay or credit on the purchase price, all real estate taxes levied or assessed for years prior to the closing, and a portion of such taxes levied or assessed in the year of closing, prorated through the date of closing. Proration of undetermined taxes shall be based on a 365-day year and on the most recent available tax rate and valuation giving effect to applicable di exemptions, recently voted millage, change in valuation, etc., officials as of that date, and the amounts so computed shall be adjusted within thirty (30) days after the actual tax amounts are available in the year -5- FILE No. 038 10/41 '97 15:58 ID:TOLD DEVELOPMENT 612 420 7574 PAGE 18 ', contested, between the parties upon final • of closing, and, if the valuation should bereadjusted determination of the actual year of closing taxes. 6.2.2 Buyer shall pay the premium for Buyer's title insurance policy including all required endorsements and the cost of the Survey. Buyer and Seller shall each pay for one-half of any closing fees. 6.2.3 Seller shall pay for any deed stamp tax or transfer tax due with respect to the warranty deed. Buyer shall pay all recording fees. 7. RIGHT OF ENTRY: IIVEMNITY. During the term hereof, Buyer, its agents and employees shall have the right to enter upon the Property for the purposes described in Sections 3 and 4 hereof and for any other reasonable purpose. Buyer agrees to indemnify and hold Seller harmless from and against any claim, loss or expense, including reasonable attorneys' fees, to the extent such are caused by Buyer pursuant to this Section 7. 8. DEFAULT:TERMINATION. If either party shall default in any of its respective obligations under this Agreement, the other party may, by written notice to such defaulting party specifying the nature of the default and the date on which this Agreement shall terminate (which date shall be not less than twenty (20) days after the giving of such notice), terminate this Agreement and upon such date, unless the default so specified shall have been cured, this Agreement shall terminate. If this Agreement is terminated by Seller for Buyer's default, the earnest money shall be forfeited to and retained fio by Seller as agreed final liquidated damages and shall become the sole and exclusive property of Seller and Buyer shall deliver to Seller copies of all reports (other than prospective tenants) to Seller. If this Agreement is terminated by Buyer for Seller's default or as otherwise provided in this Agreement, such earnest money shall thereupon be returned to Buyer and Buyer shall have the right to seek all remedies available at law or in equity including without limitation, specific performance. Seller agrees that Buyer is entitled to specific performances of the Agreement. If any litigation or other legal action results from a breach of this Agreement, the losing or defaulting party shall pay the prevailing or non-defaulting party an amount equal to the prevailing or non-defaulting party's reasonable attorneys' fees and other reasonable costs in connection therewith. The provisions of Section 8 shall survive closing. 9. MISCELLANEOUS. 9.1 Wherever in this Agreement it shall be required that notice or demand be given by either party to this Agreement to or on the other, such notice or demand shall not be deemed given or served unless in writing and forwarded by registered or certified mail, postage prepaid or by confirmed facsimile transmission, addressed as follows: (The date of transmission of the facsimile or the date deposited in the U.S. mail or with an expedited delivery carrier, shall be deemed the date of notice. Any date of performance falling on a Saturday, Sunday or holiday shall be deemed to occur on the first non- holiday weekday, next occurring.) -6- FILE No. 038 10/01 '97 15:58 ID:TOLD DEVELOPMENT 612 420 7574 PAGE 19 • To Seller at: Director of Economic Development City of Mounds View - Economic Development Authority 2401 Highway 10 Mounds View, MN 55112 Attn: Catherine Capone Bennett Fax No.: (612)784-3462 To Buyer at: Meridian Properties Real Estate Development L.P. c/o TOLD Development Company 6900 Wedgwood Road, Suite 100 Maple Grove, MN 55311 Fax No.: (612)420-7574 9.2 Risk of loss shall remain with Seller until the date of Closing. Seller shall promptly notify Buyer if the Property is substantially damaged by any casualty or if condemnation proceedings are commenced with respect to any part of the Property. If either of the events described above occurs prior to the Closing Date, Buyer may, at its option, terminate this Purchase Agreement by written notice given to Seller within ten (10) days after receipt of notice from Seller hereunder. If this Purchase Agreement is not so terminated, Buyer shall be obligated to close and shall thereafter be entitled to receive and retain iall insurance proceeds or condemnation awards attributable to the event in question. 9.3 Except as expressly provided to the contrary herein, Seller agrees to indemnify, defend and hold Buyer harmless from and against any claim, loss, damage or expenses, including reasonable attorneys' tees, relating to the Property, caused by any action or failure to act of Seller and arising or accruing prior to Closing. • 9.4 Seller shall pay the entire amount of any brokerage commission, finder's fee or other selling commission in connection with the sale of the Property, and Seller shall indemnify and hold Buyer harmless from any claim or loss, including reasonable attorneys' fees, incurred in connection with any such tee or commission. Buyer represents that no broker was involved in this transaction on behalf of Buyer. 9.5 This Agreement may be executed in separate counterparts. When counterparts have been executed and delivered by all parties, they shall constitute one integrated Agreement which shall be binding to the same extent as if all parties had executed the same counterpart. 9.6 This Agreement and any Rider attached hereto constitute the entire agreement between the parties with respect to the subject matter hereof. Neither party is relying upon any representations of the other party or its agents. This Agreement shall be governed by the laws of the State of Minnesota. • 9.7 This Agreement shall be binding on and inure to the benefit of the parties hereto, their respective heirs, successors and assigns. H:\TOM\MOUNDSV.PUR 10.01.97 -7- FILE No. 038 10/01 '97 15:59 ID:TOLD DEVELOPMENT 612 420 7574 PAGE 20 9.8 Seller shall, at the request of Buyer, execute a memorandum of the terms of this • Agreement, excluding the price, which memorandum shall be in recordable form and shall, at Buyer's discretion, be recorded in lieu of this Agreement. 9.9 Neither Seller nor Buyer have dealt with a broker on this transaction. Buyer will be responsible for any commission or fee due to Terry Moses, who represented Buyer on purchases of adjacent parcels. 10. SELLE$S ACCEPTANCE. This offer shall be null and void if not accepted on or before October 30, 1997. • • • H:\TOM\MOUNDSV. EuR 10.01.97 -8- FILE No. 038 10/01 '97 15:59 ID:TOLD DEVELOPMENT 612 420 7574 PAGE 21 • IN WITNESS WHEREOF, Seller and Buyer have caused this instrument to be executed as of the day and year first above written. SELLER: CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY By: Its: Date: BUYER: MERIDIAN PROPERTIES REAL ESTATE DEVELOPMENT LIMITED PARTNERSHIP, a Minnesota limited partnership By: Its: General Partner Date: • • • H:\TOM\MOUNDSV.PUR 10.01.97 -9- FILE No. 038 10/41 '97 15:59 ID:TOLD DEVELOPMENT 612 420 7574 PAGE 22 ,t EXHIBIT "A" • Legal Description (To be attached by Seller.) S S H: \TOM\MOUNDSV.PUR 10.O1.97 -10- 10/02/97 THU 17:01 FAX 16122889400 HOLMES&GALEY,LTD 15 • HOLMES & GAL.EY, LTD. ONE FINANCIAL PLAZA,SUITE.1200,120 SOUTH SIATII STREET,MINNEAPOLIS,MINNESOTA 55402 TF.I.RPIIONE:(612)288-9300 • FACSIMILE:(612)288-0400 E-MAIL ADDRESS: IIc1.TD9r11DT,NET • DIREc:T DIAL:(612)305-4270 JAMES S. HOLMES ATTORNEY AT LAW October 2, 1997 Mr. David Engstrom 1001 Washington Avenue North Minneapolis, MN 55402 Re: Silver Lake Commons/Mounds View • Dear Dave: Attached find a draft copy of a Cooperation Agreement and an Initial Agreement. As I indicated in my letter of September 23rd to Bob Long, there are many alternatives for dividing the administrative responsibilities between the MPHA and the City, or the City EDA. Since no one has given me comments on this, I have simply used the structure currently proposed for the Eden Prairie project, where the MPHA assumes all responsibility initially, but with the intention that the Metropolitan Council will be substituted for the MPHA in the future. I have had some conversation with Evon Shell and Wayman Lawrence, representatives of MSP Real Estate Inc., about structuring the public housing development funds as either a forgivable loan to the partnership or as a grant to the nonprofit general partner of the partnership. If either approach is used, the Initial Agreement may need to be changed to reflect this. Very t tiv yours, Jain_ S Holmes • )SH:mj Enclosures Cc: Milo Pinkerton (w/encl.) Bob Long (w/encl.) D:'.IM NN`I2f.0I4'\.CORR'.DENGSTROM.DOC 10/02/97 THU 17:01 FAX 16122889400 HOLMES&GALEY,LTD a003 1 M October 2, 1997 • COOPERATION AGREEMENT This Agreement made and entered into this day of , 199 , by and between the Minneapolis Public Housing Authority in and for the City of Minneapolis (the "Authority") and the City of Mounds View, State of Minnesota (the "Municipality"). WITNESSETH: In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows: 1. Whenever used in this Agreement: (a) The term "MIIOP Units" means ten (10) units of low-rent housing hereafter to be developed with the financial assistance of the United States of America acting through the Secretary of Housing and Urban Development (the "Government") and located within a fifty-six (56) unit apartment development known as Silver Lake Commons (the "Development") to be owned by the Mounds View Family Apartments Limited Partnership ("Owner") and located in the City of Mounds View, County of Ramsey("County"), Minnesota. (b) The term "Taxing Body" or "Taxing Bodies" means the State of Minnesota and any and all political subdivisions or taxing units thereof in which the MHOP Units are situated and which would have authority to assess or levy real or personal property taxes, or to certify such taxes to a taxing body or public officer, to be levied for its use and benefit with respect to the MHOP Units if they was not exempt from such taxation. (c) The term "Shelter Rent" means the total of all charges to all MHOP Unit tenants for dwelling rents and nondwelling rents (excluding all other income of the MHOP Units) less the cost of all dwelling and nondwelling utilities. 2. The Authority shall endeavor: (a) to secure a contract with the Government for capital grants and annual contributions for the MHOP Units; and (b) to cause to be developed and provide for the administration of the MHOP Units. 3. (a) Pursuant to Minnesota Statutes, Section 469.040, the MHOP Units are exempt from all real and personal property taxes levied or imposed by any Taxing Body for so long as either (i) the MHOP Units are owned by a public body or governmental agency and are used for low-rent housing purposes, (ii) the MHOP Units are subject to the requirements of Section 5 of the United States Housing Act of 1937, (iii) the contract between the Authority and the Owner in connection with the MHOP Units • continues to obligate the Owner to operate the MHOP Units as a low income housing `\SERVER\DOCMNNI25\Ol I\DOCS\COOPAOC 1 COOPERATION AGREEMENT MPHA/CITY OF MOUNDS VIEW SILVER TAKE COMMONS DEVELOPMENT 10/02/97 THU 17:02 FAX 16122889400 HOLMES&GALEY,LTD EJ004 • project, or (iv) any obligations issued in connection with the MHOP Units or any moneys due to the Government in connection with such MHOP Units remain unpaid, whichever period is the longest(the "Exemption Period"). (b) During the Exemption Period, the Municipality, on behalf of the Taxing Bodies, agrees that it will not levy or impose any real or personal property taxes upon the MHOP Units or upon the Authority with respect thereto. Because the MHOP Units consists of ten (10) units located within and under common private ownership with 46 additional housing units which comprise the Development, the property tax taxes and property tax exemption shall be determined as follows: (i) the tax capacity of the total Development shall be multiplied by a fraction, the numerator of which equals the total number of MHOP Units and the denominator of which equals the total number of housing units in the Development and (ii) the product thereof shall be deducted from said tax capacity. (c) During the Exemption Period, the Authority shall make, or cause to be made, annual payments in licu of taxes ("PILOT") in payment for the public services and facilities furnished from time to time without other cost'or charge for or with respect to the MHOP Units. Each PILOT shall be made at the time when real property taxes on the MHOP Units would be paid if it was subject to taxation, and shall be in an amount equal to either (i) five percent (5%) of the Shelter Rent actually collected but in no event to exceed five percent (5%) of the Shelter Rent charged with respect to such MHOP Units during the preceding calendar year, or (ii) the amount permitted to be • paid by applicable State law in effect on the date such payment is made. (d) Pursuant to Minnesota Statutes, Section 469.040, subdivision 3, the County shall distribute the PILOT among the Taxing Bodies in the proportion which the real property taxes which would have been paid to each Taxing Body for such year if the MHOP Units were not exempt from taxation; provided, however, that no payment for any year shall be made to any Taxing Body in excess of the amount of the real property taxes which would have been paid to such Taxing Body for such year if the MHOP Units were not exempt from taxation. (e) In the event the PILOT is not paid, no lien against the MHOP Units or assets of the Authority shall attach, nor shall any interest or penalties accrue or attach on account thereof. 4. During the Exemption Period, the Municipality, or other appropriate Taxing Body, without cost or charge to the Authority or tenants of the MHOP Units (other than PILOT)shall: (a) Furnish or cause to be furnished to the MHOP Units public services and facilities of the same character and to the same extent as are furnished from time to time without cost or charge to other dwellings and inhabitants in the Municipality; (b) Vacate such streets, roads, and alleys within the area of the MHOP Units as may be necessary in the development thereof, and convey without charge to the Authority or Owner of the MHOP Units such interest as the Municipality, or other Taxing Body may have in such vacated areas; and, in so far as it is lawfully able to do so without \`•SIRVER\DOC\MNNI25\01 I'DOCS\COOP.DOC 7 COOPERATION AGREEMENT MPHAJCITY OF MOUNDS VIEW SILVER LAKE COMMONS DEVELOPMENT 10/02/97 THU 17:02 FAX 16122889400 HOJ.MFS&GALEY,LTD RI005 cost or expense to the Authority, the Owner of the MHOP Units or to the Municipality or other Taxing Body, cause to be removed from such vacated areas, in so far as it may be necessary,all public or private utility lines and equipment; (c) In so far as the Municipality or other Taxing Body may lawfully do so, (i) grant such deviations from the building code of the Municipality or other Taxing Body as are reasonable and necessary to promote economy and efficiency in the development and administration of the MHOP Units, and at the same time safeguard health and safety, and (ii) make such changes in any zoning of the site and surrounding territory of the MHOP Units as are reasonable and necessary for the development and protection of the MHOP Units and the surrounding territory; (d) Accept grants of easements necessary for the development of the MHOP Units; and (e) Cooperate with the Authority by such other lawful action or ways as the Municipality or other Taxing Body and the Authority may find necessary in connection with the development and administration of the MHOP Units. 5_ In the initial development of the MHOP Units, the Municipality further agrees, on behalf of all Taxing Bodies, that within a reasonable time after receipt of a written request therefor from the Authority: (a) that it will accept the dedication of all interior streets, roads, alleys, and adjacent sidewalks within the area of the Development, together with all storm and sanitary ` sewer mains in such dedicated areas, after the Owner of the MHOP Units, at its own expense, has completed the grading, improvement,paving, and installation thereof in accordance with specifications acceptable to the Municipality or other Taxing Body; (b) that it will accept necessary dedications of land for, and will grade, improve, pave, and provide sidewalks for, all streets bounding the Developments as are necessary to provide adequate access thereto (in consideration whereof the Owner shall pay to the Municipality or other Taxing Body such amount as are or could be assessed against the Development); and (c) that it will provide, or cause to be provided, water mains, and storm and sanitary sewer mains, leading to the Development and serving the bounding streets thereof(in consideration whereof the Owner of the MHOP Units shall pay to the Municipality or other Taxing Body such amount as are or could be assessed against the Development). 6. If by reason of the Municipality's or other Taxing Body's failure or refusal to furnish or cause to he furnished any public services or facilities which it has agreed hereunder to furnish or cause to be furnished to the Authority, the Owner or tenants of the MHOP Units, the Authority or the Owner of the MHOP Units incurs any expense to obtain such services or facilities,then the Authority may cause to be deducted the amount of such expense from any PILOTS due or to become due to the Municipality or other Taxing Body in respect to the . MHOP Units. \SERVER\DOC\MNN!25\0I IIDOCS\COOP.DOCj COOPERATION AGREEMENT MPI4A/CITY OF MOUNDS VIEW SILVER LAKE COMMONS DEVELOPMENT _ 10/02/97 THU 17:03 FAX 16122889400 HOJ.MFS&GALEY,LTD a006 7. No Cooperation Agreement heretofore entered into between the Municipality and the Authority shall be construed to apply to any MHOP Units covered by this Agreement. 8. No member of the governing body or any other public official of the Municipality or other Taxing Body who exercises any responsibilities or functions with respect to the MHOP Units during his/her tenure or for one year thereafter shall have any interest, direct or indirect, in the MHOP Units or any property included or planned to be included in the MHOP Units, or any contracts in connection with the MHOP Units or property. If any such governing body member or such other public official of a Taxing Body involuntarily acquires or had acquired prior to the beginning of his/her tenure any such interest, he/she shall immediately disclose such interest to the Authority. 9_ During the Exemption Period this Agreement shall not be abrogated, changed, or modified without the consent of the Government. The privileges and obligations of the Municipality and other Taxing Bodies hereunder shall also remain in full force and effect with respect to each MHOP Units so long as the beneficial title to. such MHOP Units is held by the Authority or by any other public body or governmental agency, including the Government, authorized by law to engage in the development or administration of low-rent housing projects. If at any time the beneficial title to, or possession of, any MHOP Units is held by such other public body or governmental agency, including the Government, the provisions hereof shall inure to the benefit of and may be enforced by, such other public body or governmental agency, including the Government. rIN WITNESS WHEREOF the Municipality and the Authority have respectively signed this Agreement and caused their seals to be affixed and attested as of the day and year first above written. MINNEAPOLIS PUBLIC HOUSING AUTHORITY IN AND FOR THE CITY OF MINNEAPOLIS By Its And by Its I/ \SERVER\DOCNINN 123\011\DOCS\COOP.DOC 4 COOPERATION AGREEMENT MPITA/CITY OF MOUNDS VIEW SILVER LAKE COMMONS DEVELOPMENT 10/02/97 THU 17:04 FAX 16122889400 HOLMES&GALEY,LTD 0007 CITY OF MOUNDS VIEW, MINNESOTA By Its And by Its • This Document Drafted by: Holmes& Galey,Ltd. 1200 One Financial Plaza 120 South Sixth Street Minneapolis,MN 55402 612-288-9300 612-288-9400(Fax) • \\SF.RVER\DOC\MNNI25\0I!\DOCS\COOP.DOC 5 COOPERATION AGREEMENT MPHA/CITY OF MOUNDS VIEW SILVER LAKE.COMMONS DEVELOPMENT 10/02/97 THU 17:04 FAX 16122889400 HOLMES&GALEY,LTD Q008 • October 2, 1997 INITIAL AGREEMENT THTS AGREEMENT, made this day of , 1997 by and between the Minneapolis Public Housing Authority in and for the City of Minneapolis, a public body corporate and politic (the "MPHA") and the City of Mounds View, a municipal corporation (the "City") is entered into pursuant to Minnesota Statutes, § 471.59, 469.012, subds. 1(11) and 3. WHEREAS, the MPHA has entered into an Annual Contributions Contract ("ACC") with the United States Department of Housing and Urban Development ("HUD") for funding the capital and operating costs of low rent public housing units and projects throughout the Minneapolis-St. Paul metropolitan area; and WHEREAS, the MPHA has established the Metropolitan Housing Opportunities Program ("MHOP") pursuant to which it will cooperate with suburban municipalities in the construction and operation of qualified housing units (the "MHOP Units"); and WHEREAS, the City is negotiating with MSP Real Estate, Inc. (the "Developer") for, • among other things, the development of 56-unit multifamily rental housing project to be known • as the Silver Lake Commons Development ("Silver Lake") and to be owned by the Mounds View Family Apartments Limited Partnership (the "Partnership"); and WHEREAS, the MPHA, the City and the Developer have agreed to cooperate in the location of 10 MHOP Units in Silver Lake; and WHEREAS, the purpose of this Agreement is to define the relationship of the MPHA and City with respect to the planning, construction, ownership and operation of the MHOP Units and as such shall constitute a joint powers agreement pursuant to Minnesota Statutes, §471.59. NOW, THEREFORE, it is agreed by the parties hereto as follows: T. PROPOSAL. The parties will jointly prepare and submit to HUD a proposal for development funds in the amount of $ and ongoing operating subsidy under the ACC for the construction and operation of 7 replacement units and 3 incentive units of MHOP housing. A. All required Silver Lake information, including financial pro formas and design and construction documents, will be gathered and assembled by the City and delivered to the MPHA. B. Final document preparation, including initial operating budgets, and conformity • with federal regulations and HUD requirements will be the responsibility of the MPHA. D:\MNN125\0I I\DOCS\INITIAI_DOC 1 INITIAL AGREEMENT MPHA/CITYOF MOUNDS VIEW SILVER LAKE DEVELOPMENT 10/02/97 THU 17:05 FAX 16122889400 HOJ.MFS&GALEY,LTD 0i009 C. The MPHA shall be responsible for administering the processing of the Proposal • and obtaining its approval by HUD. D. The City shall be responsible for all liaison with the Metropolitan Council and the Minnesota Housing Finance Agency with respect to all other funding affecting Silver Lake. E. The City will provide to the MPHA a copy of the City's affirmative action plan and the MPHA will provide the City with a copy of the current MPHA plan. The parties will make reasonable efforts to coordinate the substance and implementation of these plans in the development and operation of the MHOP Units. F. The City will monitor the application of federal Davis-Bacon wage requirements which shall apply to the development of Silver Lake provided that the Housing Development Agreement between the MPHA and the Partnership shall require the Partnership and construction contractors to provide the City such information as it may reasonably require in order to meet its obligation hereunder. II. DEVELOPMENT. The MPHA shall enter into a Housing Development Agreement with the Partnership which will: A. Establish the design and construction specifications of the MHOP Units; • B. Confirm the amenities to be provided within and around Silver Lake; C. Provide that the level of MHOP funding for Silver Lake will equal certified construction costs (pro rata based on bedroom size); D. Provide that the operating subsidy reserve fund be drawn upon in the event operating subsidies paid by the MPHA are inadequate to pay the difference between MHOP Unit income and expenses, as defined below; E. Provide for the draw-down of public housing development funds on a pro rata basis with other Silver Lake funding sources; F. Establish a system by which the MHOP units within Silver Lake will not be physically identified, but rather will "float" throughout the development depending upon vacancies and availability; G. Identify the system for construction inspections, cost certifications and development audits; • H. Require execution by the Partnership of the Regulatory and Operating Agreement and a Declaration of Restrictive Covenants creating a covenant running with the • land obligating the Partnership, as owner of Silver Lake, and all successors in interest to maintain and operate the MHOP Units in compliance with all D:1MNN125\0I IIDOCSIINITIAL.DOC 7 N IT1AI.AGREEMENT MPI-IA.CITY OF MOUNDS VIEW SILVER LAKE DEVELOPMENT 10/02/97 THU 17:05 FAX 16122889400 HOJ.MFS&GALEY,LTD 1Q010 • applicable requirements of Section 5 of the United States Housing Act of 1937 and the ACC; and i. Require the recording of the Declaration of Restrictive Covenants as a restrictive covenant against the Silver Lake property. III. MANAGEMENT. The Regulatory and Operating Agreement shall provide that . (the "Manager") shall manage all the units at Silver Lake, including the MHOP Units and: A. shall comply with all federal law,regulations and policies and the ACC. B. shall provide the MPHA and/or HUD with access to all books and records maintained by the manager or managers with respect to the MHOP Units. C. shall he subject to termination and replacement as to the entire Silver Lake development if it is determined by the MPHA, subject to appropriate judicial review by any court of competent jurisdiction, that the Manager. or any successor has materially violated, breached, or failed to comply with any provision of federal law, regulation, policy, or the ACC. D. shall receive from the MPHA and the City the names of persons and families that • have incomes at or below the public housing income limits and who meet the income and waiting list criteria for admission into the MHOP Units and shall carry out such administrative functions as (but not limited to) applicant interviews and screening, verifications, determination of suitability for admission, unit assignment, execution of leases, terminations and evictions. IV. WAITING LIST MANAGEMENT. The MPHA shall maintain the waiting lists for those applying for housing in the both the incentive and replacement MHOP Units using applicable federal, MHOP and local priorities. Applicants for the six (6) replacement MHOP Units will be selected from a MI-TOP waiting list based upon the following priorities: A. First, to families displaced by the demolition of Minneapolis public housing units pursuant to that certain Consent Decree entered in settlement of Hollman et al. vs. Cisneros et al., U.S.D.C. (Minn. Dist., 4th Div.) Civil Case No. 4-92-712. B. Second, to families on the MPHA waiting and transfer lists who live in minority or poverty concentrated areas in the metropolitan area. C. Third, to families on the MPHA waiting list. This will include all families wishing to participate in MHOP, including both Minneapolis waiting list families and applicants from Eden Prairie. The MPHA will automatically place all • applicants from Eden Prairie on its waiting list, thus making both Minneapolis and Eden Prairie residents equally eligible for this priority. D:\MNNI25\OI I\DOCS\INITIAL.DOC 3 INITIAL AGREEMENT MPHA/CITY OF MOUNDS VIEW SILVER LAKE DEVELOPMENT 10/02/97 THU 17:06 FAX 16122889400 HOLMES&GALEY,LTD fQ011 - The Manager, will have complete control over the selection of residents, so long as the MHOP priorities and all federal and state laws are followed. The MPHA will promptly and continuously refer all Minneapolis applicants for the replacement MHOP Units to the Manager. If the referral system results in no eligible and suitable tenant with Consent Decree priorities, the unit can be filled with other applicants on the waiting list. The City and the MPHA shall provide HUD a certification, in the form attached hereto as Exhibit A, certifying that its waiting list procedures will conform with applicable law and regulations. V. POST CONSTRUCTION DUTIES. As a part of the HUD close-out requirements with respect to the MHOP Units,the following responsibilities will be assigned: A. The MPHA shall designate the End of the Initial Operating Period ("EIOP") and shall coordinate the inclusion of the MHOP Units in the MPHA Annual Operating Budget. B. Within 12 months of EIOP, the MPHA shall gather information and provide HUD with the Actual Development Cost Certificate ("ADCC"). C. The MPHA shall be responsible for the preparation of an audit by an independent public accountant as a part of its submission of the ADCC. The City shall provide such information as is in its possession or can be reasonably obtained in order to assist the MPHA with such audit. D. The MPHA shall monitor the Partnership procedures and results in screening applicants provided from the waiting lists and report the results thereof to HUD as may be requested or required. VI. TAX CERTIFICATIONS The MPHA shall annually certify to the appropriate assessing officials the number of MHOP units located within Silver Lake, pursuant to Minnesota Statutes, Section 469.040, subdivision 4. VII. OPERATING SUBSIDY. Under the ACC, HUD contracts to provide an operating subsidy to the MPHA for all units subject to the ACC, which will include these MT-TOP Units. It is therefore necessary to establish a methodology by which the MPHA will pay operating subsidy to the Partnership, as owner of the MHOP Units. That system, to be described more fully in a Regulatory and Operating Agreement between the MPHA and the Partnership,will be generally as follows: A. As used in this Section VII, the following terms shall have the following meanings: 1. "Allowed Project Expenses" means all necessary and reasonable operating • expenses of Silver Lake for any period, including: D:\MNNI25\01 I\DOCS\INI IAI..DOC 4 INITIAL AGREEMENT MPHA/CITY OF MOUNDS VIEW SILVER LAKE DEVELOPMENT - 10/02/97 THU 17:07 FAX 16122889400 HOLMES&GALEY,LTD 0012 • (a) all ordinary and necessary expenses of operations of Silver Lake shown as line items on Form HUD-92547-A (Budget Worksheet), exclusive of real estate taxes and debt service requirements of any lender and exclusive of utility expenses which are the direct responsibility of tenants; provided, however, that if the Partnership shall be required to borrow funds for repairs, replacements or improvements not funded from a Silver Lake reserve fund for replacements, debt service requirements for any such borrowing approved by the MPHA (which approval shall not unreasonably be withheld) shall be included in Allowed Project Expenses; provided, further, that MHOP Unit Expenses (as hereinafter defined) shall be reduced by any amounts contributed by the MPHA, on a grant basis, for repairs,replacements or improvements.; (b) management fees payable pursuant to the Management Agreement; (c) legal expenses associated with the operation of Silver Lake as well as accounting and audit expenses, including tax return preparation expenses, permitted to be charged as project expenses pursuant to HUD Handbook 4370.2 REV-i, Financial Operations and Accounting Procedures for Insured Multifamily Projects, or any successor thereto; and • (d) reserves for replacements and for any other purposes, as required by any lender and approved by the MPHA. 2. "MHOP Percentage" shall mean the higher of (i) the number of MHOP Units, divided by the total number of units at Silver Lake, or (ii) the net rentable square feet of the MHOP Units (assuming 5 two-bedroom units, 1 three-bedroom unit and 4 four-bedroom units), divided by the net rentable square feet of all units at Silver Lake. 3. "MHOP Unit Expenses" shall mean (A) Allowed Project Expenses, multiplied by the MHOP Percentage, plus (B) the payment in lieu of real estate taxes made in respect of the MHOP Units, if any, plus (C) amounts paid to MHOP Unit occupants as utility reimbursement (i.e., "negative rent"); provided, however, that if any line item expense shall be included in Estimated MHOP Unit Expenses on the basis of a percentage other than the MHOP Percentage pursuant to the second sentence of Section VII B (1) hereof, such expense shall be included in MHOP Unit Expenses on the basis of the same percentage; 4. "MHOP Unit Income" shall mean all income received in respect of MHOP Units, including tenant rents ("Tenant Rent" as defined in 24 CFR § • 913.102) and any other sources of income received in respect of MHOP Units, including all types of revenue shown as line items on Form HUD 92547-A, but exclusive of operating subsidy. D:\MNNI25,01 I\DOCS\INITIAL.DOC 5 INITIAL AGREEMENT MPHA/CITY OF MOUNDS VIEW SILVER LAKE DEVELOPMENT 10/02/97 THU 17:08 FAX 16122889400 HOLMES&GALEY,LTD fj013 - 5. "Estimated Allowed Project Expenses," "Estimated MHOP Unit 1111 Expenses," and "Estimated MHOP Unit Income" shall mean the estimated amounts of such items for any period determined in accordance with subsection (B) hereof. B. Not later than 90 days prior to the anticipated Date of Full Availability ("DOFA") for occupancy of any unit of Silver Lake, and not later than 150 days before the first day of any subsequent MPHA Fiscal Year, the Partnership shall prepare and submit to the MPHA a proposed operating budget for the following MPHA Fiscal Year (or, in the case of the year in which DOFA occurs, the remainder thereof) ("Operating Budget"). The Operating Budget shall project Estimated Allowed Project Expenses, Estimated MHOP Unit Expenses, and Estimated MHOP Unit Income for the subject period,subject to the following conditions: 1. Estimated Allowed Project Expenses shall be as reasonably estimated by the Partnership. The MPHA may comment upon and propose changes to the Estimated Allowed Project Expenses as provided by the Partnership and set forth in the Operating Budget submitted to the MPHA, but the Partnership shall not be required to reduce any estimated expense below Silver Lake development-wide amount for such expenditure reasonably anticipated by the Partnership for the period. However, the portion of any line item within the Estimated Allowed Project Expenses included in • Estimated MHOP Unit Expenses shall be altered from the MHOP Percentage if the MPHA demonstrates satisfactorily that allocation of such item to the MHOP Units on the basis of the MHOP Percentage is inappropriate(e.g., marketing and advertising costs, if such relate solely or preponderantly to the non MHOP units). 2. Until the completion of initial rent-up of the MHOP Units, Estimated MHOP Unit Income shall be determined on the basis of assumed tenant rent collections for each unit size equal to the average tenant rent collections for all units of comparable size owned and administered by the MPHA in the most recent annual or semiannual period for which such statistics are available at the time of the Partnership's submission of the Operating Budget for such period to the MPHA For each subsequent MPHA Fiscal Year, Estimated MHOP Unit Income shall be determined on the basis of the aggregate tenant rents actually collected for all MHOP Units during the first six months of the preceding MPHA Fiscal Year. Notwithstanding the foregoing, with respect to any MPHA Fiscal Year, the MPHA may agree to project Estimated MHOP Unit Income at a level different from that which would otherwise be established pursuant to the preceding sentence, taking into account(a) the reasonably anticipated level of incomes of tenants anticipated to be admitted to the MHOP Units during such period, based on anticipated turnover and the admissions • policies, and (b) reasonably anticipated increases in income levels of D.MNNI25,011\DOCS\IN1TIAL.DOC 6 INITIAL.AGREEMENT MPHA/CITY OF MOUNDS VIEW • SILVER LAKE.DEVELOPMENT 10/02/97 THU 17:08 FAX 16122889400 HOLHES&GALEY,LTD 8014 existing tenants based on tenant participation in employment training and other supportive services programs. C. During each MPHA Fiscal Year commencing with the first MPHA Fiscal Year after DOFA, and subject to any limitations arising from application of Section 20 (e) of the Act and operation of the Development Operating Subsidy Cap, the MPHA shall pay to the Partnership an amount equal to (1) Estimated MHOP Unit Expenses for such period, less (2) Estimated MHOP Unit Income for the period (the "Operating Subsidy Requirement"). The MPHA shall pay to the Partnership, on the first day of each month of an MPHA Fiscal Year, one-twelfth (1/12) of the Operating Subsidy Requirement for such MPHA Fiscal Year; provided, however, that the Partnership and the MPHA may agree, upon determination of the Operating Budget and Operating Subsidy Requirement for any MPHA Fiscal Year, to provide for unequal monthly payments for such year. VIII. RESERVE FUND. An operating reserve will be created by the Partnership from its funds. The reserve will equal three years' estimated operating subsidy for the MHOP Units, but will be allowed to grow through interest earnings and certain operating subsidy reimbursements, if any. Shortfalls, either because of the recalculation of three years' estimated operating subsidy or because of necessary withdrawal from the reserve may be made up by the MPHA, but it is not obligated to do so. 4110 IX. ADMINISTRATIVE COSTS. The MPHA and City shall each bear the costs associated with the obligations and responsibilities described herein or otherwise related to the construction and operation of the MHOP Units. X. TERMINATION AND/OR ASSIGNMENT A. In the event the City wishes to terminate this Agreement it may do so as follows: 1. Ninety (90) days' notice of its intention to terminate shall be served upon the MPHA or an agency of the City by the City in writing; 2. The City shall assume and undertake all of the obligations and responsibilities of the MPHA as set forth in all written agreements relating to Silver Lake between the MPHA, on the one hand, and the City, the Developer, the Partnership, the MHFA, HUD or any other contracting party,on the other; 3. The City or an agency of the City shall become the contracting party with HUD with respect to the annual contributions contract governing the construction and operation of Silver Lake; 4. HUD shall consent in writing to such termination; and • 5. The MPHA shall be released from all future liability arisingfrom and responsibility for the ongoing construction or operation of Silver Lake. D\MNN 125101 I\DCC SIINITIAI..DOC 7 INITIAL AGREEMENT MPHA/CITY OF MOUNDS VIEW SILVER LAKE DEVELOPMENT 10/02/97 THU 17:09 FAX 16122889400 HOLMES&GALEY,LTD lj015 " IP B. In the event the City and the Metropolitan Council agree that the Metropolitan Council will undertake the responsibilities and obligations of the MPHA with respect to Silver Lake, and provided that the Metropolitan Council fulfills the conditions described in paragraph XA 1 through 5, above, the MPHA shall assign to the Metropolitan Council all of the agreements to which it is a party as they may relate to the construction or operation of Silver Lake. C. All agreements executed by the MPHA with respect to Silver Lake shall provide for the eventualities described in this paragraph X. XI. MISCELLANEOUS. A. No member, official, or employee of the MPHA or City shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official, or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is, directly or indirectly, interested. No member, official, or employee of the MPHA or City shall be personally liable to a party to this Agreement, or any successor in interest, in the event of any default or breach by any party or for any amount which may become due a party or successor or on any obligations under the terms of this Agreement. B. The parties hereto, for themselves and their successors and assigns, agree that during the term of this Agreement they will comply with all affirmative action and non-discrimination requirements of applicable federal, state or local laws or regulations. C. Any titles of the several parts, Articles, and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. D. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid,return receipt requested, or delivered personally; and 1. in the case of the MPHA, is addressed to or delivered personally to the MPHA at 1001 North Washington Avenue, Minneapolis, MN 55401, Attention: Executive Director; and 2. in the case of the City, is addressed to or delivered personally to the City at 2401 Highway 10, Mounds View, MN 55112-1499 Attention: • D:\MNNI2SSOII\DOCS\INITIAL.DOC S INITTAI.AGREEMENT MPHA/CITY OF MOUNDS VIEW SILVER LAKE DEVELOPMENT 10/02/97 THU 17:10 FAX 16122889400 HOJ.MFS&GALEY,LTD I ]016 or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. E. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. TN WITNESS WHEREOF,the MPHA has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the City has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. • • 4111 D:\MNNI25`.0I(`.DOCS INITIAI..DOC 9 INITIAL AGREEMENT MPHA/CITY OF MOUNDS VIEW SILVER LAKE DEVELOPMENT 10/02/97 THU 17:10 FAX 16122889400 HOLMES&GALEY,LTD x017 • • MINNEAPOLIS PUBLIC HOUSING AUTHORITY IN AND FOR THE CITY OF:LNNEAPOLIS By Richard Brustad Tts Chairman By Cora McCorvey Its Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) • On this day of , 19 , before me, a notary public, personally appeared Richard Brustad and Cora McCorvey, the Chairman and Executive Director, respectively, of the Minneapolis Public Housing Authority in and for the City of Minneapolis, a public body corporate and politic under the laws of the State of Minnesota (the "MPHA"), named in the foregoing instrument and acknowledged said instrument on behalf of the MPHA. Notary Public • D:\MNN 125\01 I\DOCS\INITIALDOC INITIAL AGREEMENT MPHA/CITY OF MOUNDS VIEW SILVER LAKE DEVELOPMENT EXECUTION PAGE 10/02/97 THU 17:10 FAX 16122889400 HOLMES&GALEY,LTD 01018 THE CITY OF MOUNDS VIEW, MINNESOTA By Its By Its STATE OF MINNESOTA ) ) ss. COUNTY OF ) On this day of , 19_, before me, a notary public, personally appeared_ and , the and , respectively, of the City of Mounds View, a public body • corporate and politic under the laws of the State of Minnesota (the "City"), named in the foregoing instrument and acknowledged said instrument on behalf of the City. Notary Public • D:\MNN I?S\O 1!\DOCS\INITIAI..DOC INITTAI.AGREEMENT MPITA/CITY OF MOUNDS VIEW SILVER LAKE DEVELOPMENT EXECUTION PAGE 10/02/97 THU 17:11 FAX 16122889400 HOLMES&GALEY,LTD x019 EXHIBIT A • Waiting List Certification • • • • DAMNN125\A11\DOCS\TNITIAL_DOC A-1 INITIAL AGREEMENT MPHA/CITY OF MOUNDS VIEW SILVER LAKE DEVELOPMENT EXECUTION PAGE n Item No. I A Staff Report No. —?a 9C Meeting Date 10-6-97 Type of Business WK WK: Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Work Session Staff Report To: Mounds View City Council From: Cathy Bennett, Director of Economic Development Item Title/Subject: Discussion of Housing Replacement Program Activity Date of Report: October 2, 1997 Wouldn't you know that since Jennifer's departure there has been an increase in activity under the housing replacement program (HRP) on several properties in Mounds View. Jennifer started most of these projects and they are all coming to a head all at once. a. Offer to Purchase 8265 Spring Lake Road The EDA approved the participation agreement with Loren Hanson for the purchase of 8265 Spring Lake Road under the HRP at the August 26, 1997 EDA meeting. In the negotiations for a Contract • for Private Development Loren has decided that he is not interested in participating in the program. Since he was the builder and buyer he could not recoup his costs to participate through the sale of the home. Therefore,Jennifer sent out another letter opening offers on the lot on September 5, 1997. The letter stated that we would accept offers until October 2, 1997. I have received several calls from interested developers of which none have identified a buyer at this time which is a requirement under the HRP. I advised the developers to submit an offer with the contingency that if a participation agreement was signed that the developer would be obligated to identify a buyer prior to signing a contract for private development and closure on the lot. To date I have received one offer from Preferred Builders, Inc. They are the developers of the single family homes on the corner of Highway I 0 and Spring Lake Road. I may have additional offers submitted after the submission of this report and will bring those to the work session for discussion. b. Long Lake Road and Ardan: At the August work session staff was directed to contact developers and Realtors regarding the marketability of new homes along Long Lake Road and Ardan near the compost site. Currently, the EDA owns one of the lots on the corner of Ardan and Long Lake Road. Staff contact Preferred Builders who looked at the site and felt that there definitely was a market for single family homes in this area. They are not concerned with the compost site but did say that the type of home they would envision would be a starter home with a market value of high $80's to low $90's. Preferred Builders would propose purchasing lots 1 and 13 and developing a row of houses City of Mounds View Staff Report October 2, 1997 Page 2 along Arden, facing the compost site. Staff feels that there are better alternatives for a more attractive development that would provide a buffer to the compost site. (See attached memo from Jim Ericson dated October 2, 1997) Preferred Builders is willing to partner with the City in redeveloping this area. Darryl Westerlund, representative of Preferred Builders will be at the work session to express his client's interest in developing the area. c. Offer to Sell 8005 Groveland Road: The City of Mounds View has received a letter from Jerry and Phyllis Blanchard expressing an interest in selling their home located at 8005 Groveland Road under the housing replacement program. (See attached letter). I have included data from Ramsey County regarding the home with an assessed value of$73,600 and paying tax of$1,029.86 of which $185.64 comes to the City. The property must meet at least one of the following to be eligible. I.) Substandard as to condition, size or usage; 2..) Obsolete and having a faulty design for block or area in which it is located; 3.) Deterioration which has caused blight to other adjoining properties; or 4.) Detrimental to the safety or health of abutting properties in the block. After inspection by Building Inspector Rick Jarson it was determined that the house met criteria number one and therefore was eligible under the program. If the EDA is interested the next step would be to direct staff to negotiate a purchase price. According to the HRP, an agreed upon price that is below the assessor value can be accepted without the need for an appraisal. If a price below the assessed value can not be reached the EDA must order a fee appraisal. In addition to this property I have been in discussion with the owners of other properties in the area. I will give a report and answer any questions at the work session. • • To: Residential Builders and Interested Home Buyers From: Cathy Bennett, Mounds View EDA Subject: Notice of Residential Building Lots For Sale Date: September 5, 1997 The Mounds View Economic Development Authority(EDA) established the Housing Replacement Program to reduce the social costs of blight and increase the tax base. The purpose of the program is to replace deteriorating lower value housing on scattered sites throughout the City with larger, higher value housing designed for families. To accomplish this goal, the EDA purchases substandard homes, demolishes the home and sells the lot to prospective buyers for redevelopment. This will assist in eliminating the blighting influence of substandard housing and increasing the availability of quality housing for families. The EDA currently has a vacant site available for redevelopment. Please see the attached sheet for detailed information on this lot. iIn order to be considered, the builder must submit a proposal in writing by noon on October 2, 1997. The proposal shall include the offer price of the lot, a description of the proposed new home including the number of bedrooms and bathrooms, and proposed estimated value of the new home. The EDA will only consider proposals from a licensed residential home builder who has identified a buyer to occupy the home upon its completion. Please submit proposals to: Mounds View EDA ATTN: Cathy Bennett 2401 Highway 10 Mounds View, MN 55112. The selected builder must comply with the Housing Design and Site Criteria and enter into a Participation Agreement with the EDA (see attachments). Upon satisfactory negotiations, the builder/buyer team must submit a$500 participation fee and enter into a Contract for Private Development with the EDA within 30 days of signature of the Participation Agreement. The participation fee is non-refundable and non-transferable. The development of all sites shall meet the development objectives as set forth in the Housing Design and Site Criteria. These guidelines were created to ensure that the homes built on the identified lots blend in with the surrounding neighborhood and respond to the objective of the Mounds View Housing Replacement Program. If you have any questions, please call Cathy Bennett at 717-4002. 1333 Osborne Road �,r 11111110011.n. • • � ,:� x�. Spring Lake Park,MN 5432 ' ° 1 'y PREFERRED Office:(612)Fax:(612) 780- 27� BUILDERS, INC. OVER A DECADE OF QUALITY CUSTOM HOMES September 22, 1997 Catherine Capone Bennett 2461 Hiway 10 Moundsview Mn. 55112 - 1499 Mrs Bennett: Please be advised that we are interested in entering into an agreement with the Mounds View Economic Development Authority (EDA) to build a single family dwelling at 8265 Spring Lake Road. Our offer is as follows: 1. $28,000.00 offering price on Lot 2. Construction of a three bedroom modified two-story single • family home with a three car garage and two full baths. We are interested in preceeding as soon as possible. d,? L %1�5I Sincerely / A. : Kociscak,President • interoffice MEMORANDUM to: Cathy Bennett from: Tim Ericson subject: 8283 Long Lake Road date: October 2, 1997 I am sending you this memo to highlight the different development possibilities available for the properties located at 8283 and 8271 Long Lake Road, and possibly the property at 2510 Ardan Avenue and the vacant lot that fronts on the unimproved Woodlawn Drive. Besides redeveloping the two lots on Long Lake for two single family homes, there are two additional options that would reconfigure the lots to allow for the construction of three or four homes. For the first option, I would suggest that we vacate the Ardan Avenue right of way behind 8283 Long Lake Road, then depending upon which of the four properties we can acquire, either reposition Ardan south of the properties (option#1) or create three smaller lots facing Long Lake Road (option#2). Neither of these options would depend upon the purchase of the two interior lots (Facing Woodlawn). If the house fronting the unimproved Ardan Avenue and the vacant lot fronting unimproved Woodlawn could be procured, then a two additional homes could be built off of a half cul-de-sacced Ardan Avenue, with the approval of a wetland buffer permit. This is shown as Option#3. The fourth option would depend on purchasing additionally the vacant lot facing the unimproved Woodlawn immediately behind 8247 Long Lake Road. This option would result in the ability to construct six homes on a fully cul-de-sacced Ardan Avenue, again, with the approval of a wetland buffer permit. Option#1 has some benefits which I think make it a practical choice. It would create three 100 foot Iots which is the norm for this area, it would vacate Ardan to the north creating an additional buffer between the homes and the compost site, and it would reposition Arden closer to its western terminus. This option would not require any wetland buffer permits, but would require a replatting of the properties (as would any of the listed options.) A driveway access could be extended from the newly created Ardan to the Interior lot, 2510 Ardan Avenue, or, the access could continue where it is currently, which is from the compost site entrance. The entrance to the compost site is actually north of the Ardan Avenue right of way. Purchase of that property, if accomplished in addition to the two lots fronting Long Lake, would benefit the environment by preventing any further septic flow into the wetland. Options 3 and 4 present an exciting opportunity at infill housing in a desirable area. The homes would back or face away from the compost site, which is a legitimate concern. The disadvantage with either of these options is the proximity to the wetlands. The wetland would need to be redelineated, which could result in a more favorable line for construction purposes. Without a more favorable delineation, proposed lots 5 and 6 could not be built upon, due to setbacks from the road and wetland. LAIS Memo to Cathy Bennet Page 2 October 2, 1997 Attached are the property tax information sheets for the two vacant lots as well as the improved lot at 2510 Ardan Avenue. According to the tax records, the two vacant lots have a taxable value of$400 each. That fact alone should make Options 3 or 4 worthy of consideration. The only sticking point might be obtaining the rental property facing the compost site, 2510 Ardan Avenue. • I VNI le - 3(7 • . f� /. ' 17 �% •• �f 0 is r s'=�v0-.:(49).' ' : <O 1 �' „q,5 N' .Z7 • _ ..1., 8.76 o�.c... . . o - x.:.412.c. . 4;4 5� 8) -_. (3 4) t •-•-••.r OPT IOC •�. _ C34).: a' -(as- L.63 \1 (2-) , ' -` . 2 ., 1_mss iS•� • `141-< i TINI___; „ =r,2.70. +� t• / p, el lid `(b¢,' .tet-y,`-(`8)' c. ' V1LL GE OF MOUNDS VIEW / a ` ,rte )'• i s - - • -r.• •:5 t.".‘.-...* ���Zt • 1 m VA;'- \` % °�� et N —V'• Q t){•' O Z91.S.III =1.56 60. V 125 • , . I fr toe !�/ •) '4 M t • S1 . N I l J t �3�et ‘4ad r . H2O) Q 0 ;T:77.u>� 38 �^}'3 7 ,� Jee..•ktwo}�, _ 0 /11/1111111)11r 222.0 .1—tts:- _ _ 6448 •• (!! 4: - �. 12 ,...... .. ,:rzo --.-. 1-65•f•• 1.*P. ':.31-3:1,::: -..-. cat _It "'�_z. � 1 f meq+ i',�; ;' •j- ill • 0; 2 l I • ,� cs /5 c9 :i2.) 1-- le • o. 5°} I (z5) \1 : ; I 45 I • •L, .I.. . . .11*, l‘? 1(9) . -••'"1-• ., 10 ` 1 1 I I2_ _ i n ai i LOT-- . ' c :. _ 9 6 \14 • 'L4'°) • 0 I(2a) 5) (!O) I (12) R A , `_- ' .''"owl- _ A ` 10I) I • . D.. "'� , OO ,?...c.) Ccs) 10 I 8 7 `% rj ganef." ser, , 4$ ,.... I at? 4,-L w `1- r..2- di- • (b,)t- oe LA ' ORT o . '.. a(45)'� �. . Z. .C•b 1 297.48 — 41111111111.1. 1.1 ,;J 8 - . . (42.) (s4) / ..... : 00. t . 7 ( -i) (mob) 21C3 Q 7 1.11- a _ t -iia�. . 4 — z. 401.4 hi D • • :2--:-, \--..:.-- .,.. 6••'••.(.57)-- - . - • • 0 . I .. - 1 .(3G) 6 (-1•11) . ..- j • _ • �J. _- -1-,%:-.7,7-7:„._5 _• d C:�a) d • 0 (4Z) 146) ,d l GG ! o =-�+: ,a�9t inti... c :;_L_s._ - - _ . 6 :__ ,.. .,.... _.. ..:..._._..:_..._.. .- .-_ 1321.6 s.....� .ir••-► .;=-..•k:.:. ” - ---'-. _-.--_- .- a >< r 3 023 A (7.2) .1.- . L • • s.-t6 o e.. �� • 1.1.It T • 270.Z? • .1, Me• Cr 17 !'fD:SP • •.. 0 (347..: OPT 14N .-1;.i++64 i 1e k 4. .. . \ 3 1 (Z) . • . • _M 5, 4; r=_ZT_a• j_ • -t ° i t� .I; • 4N =t'%=`'(68). • v V11.L�6E Or MOUNDS VIEW ' , / `e ~ • d6 . 3� -1� .• • to - i, -• . • . -.+_'.. •• . • r:l f,t # m 03- •!in • • .3(r�� . . • c.(47) Q e. 1 _ - - - �;, w- `� r t' _ _ +rp DIV iw1f.E ENT --- - - - - . • ` •• -4 ': • �■�_ra•�aci� i40 , •. tS°l . + 31/ iCC • - 5411 1 .r r., ..t94?15) ::•-....*. ;:, *. la ..50•ZiL1 ).1 C — 0.. a.rel�2'.a'-t •.•38 Mt` r 'i35) 2O) • •. (7) Pi(33) • (j+� �.jt3�7 h�r4ay r+z ct ID ;Li) Z D+Jsd14uK 'A -• . • .. r Z At 8 O im N 5 CT3 to.a-4 jz� ..,mt.az ,.,t.,......:, Cat) 1 z) �¢ G2.1 - • :. -- . po v Cet.4.5) . I° ca)o AV- • ,= tea • �} I (z5) 4' Tr, 1 r 0 5 :....:r....:•:,.....:.:,*. *: •••• ' k r0 it I 12 I ,n OUTLOT •'.57_ct.(vo� �. , - • _ ••(ta) 6 (to) 4Z ) - 11 .•.,.,(47,)•:.._.:.:-..- OODi�:)r to alo Lkh f.. i 8 7 �;� a I r itt (2..c.) Q �p . ". ._ • - "'�,- F, LA • ORT - 0 . IP 0 f _ ` ams)_'' 1___Z - 297.40 t N `�.._8 8 •' »T 3 -.J . . (4Z) Cad) / �� (- _ 7 p o a //��//�� - . ttj — --1-- - (41) (35) 2 _ Q 7 til • rE L o ,s�) Tr- _ = 0 0 3 V Q • �1 _ I•• • , .C3G) O (� 6 C�8) I (b3) ' � .5r tea)': 4 ) `0 c (47) i (44) 33 297141 -=-'"- ?T?dt' - t GG tSo ...1.46•_•......44.• 1t2 71 LIZ.c _;� r :r. 192LG • i`� . �1.v91_ �y is • `moo -•,--.• -•,--.;. -•�_ ! 3 .(..C.... •A?4`7`7 �r ; ` 8.7G�. 8gym ) �__.. (37) Ioo O P1 100 ..... 1111-77<t_17 • Lust"-• .. i ... (.3(.7...3(.) ' ,_ 3.4.55'X...:., id-r- = \� 3 (2.) 1�64� ?: �`,• • in VILLAGE OF MOUNDS VIEW• r� • • •3(4��. • I • c(67) a ._ _ _ _ _ _ S _ _ _ - �\'v.`.. f• t .- • A• O, L9 .5= V51.56 r GG V 125 • 4 f i0C,Rt.-4f • (..5 Q• j' IA • (31) Q • t R, �y� N ' 1 V. 1Ch.t. .. .r• • t� j• I C ` , l..L. ,• t @r►7s 1 .. p �� 'L 1 I 1......i 2 1 • ? .f" •• x,434:;8. •• . • IkRDRNI AVE 3Z r % (c) 8 7 a�f. o c.7 4. Z CT9 �a�Is :> r--.. a3.-.x. .�u.r • C31) P 2.) ,..01—14�,, , ———A" Or Jig ftik.or: ID CI ,3 Li +i: .(39)'.*t4a�� ¢)• _ ,_ 10 I I `t. 4 o cs C5 �" ...e, • _Ii3r�. • LZeiI CZE) • 1 ..„..,.......F_•7.:,:-.--'4;• . 10 In ��zs} ik 16 10 1 1 I 12 — - CO a o g / 6 0 —T-4.27.417. :.STo+e. N OUTLOT .--..:•_.7:.!..- ('p) . . - •(ta) ) = (lo) I QZJ ..::.C40..:.:.:7.". :.:7: ...':::. 1. 0 0 61 "t.rN•••• e,ti (rola!: ni 142-=- Lii r .. a8 :7 44541116 c .-b3; - •�:s5 t',..! t,-. _ ° LA ' ORT 0 • �� .3(GS): t 29248 F N1. .. .._. BM1 . . _ I• 0 s . I- . - • �.. .-.1 • N_ . (4•Z) (34) . I = (= • . . r _ - / • • - 2 0 Q 0 7 Q r (41) �—�3) _ _ .n i . as L . • _ oC,51)= -te ~ t= p . ooET LA 14 D fi, � ) 3 6O (48)' J . . - • • • • •• .(3 ) )raf..rit G1 ..„---z _ (5. .)..1 -17. 1 (3a)' . 4C37)� Q o i ; (46) (=.• : - 33 -'• . 297141 - ::...T-r••••.:.- Z9S dt• .. a v :.46, .r - I I I.• � ; r • .- •-..._ ._. 13Z 1.G .. - - :.....•:". --r—===..-:-w= .--•.- —._.._•_ -• - -- ids ' i.•J_ � . .e tg.. . ` •7 ' Z7o.2'f i` 8.76 o.a. •( (70. (3?) eco,•. . • Cr t7 t'locst'- OPT 'O0 • C 36).:,ice! :'35_ ` _ "2• i t+nze s (Z j .. ' ;� �T •�G . v1LLA6E OF MOUNDS VIEW • • • ren � . ` • C2G v •�_ • �` Tri • o{: 9 40c, .• Ai I ' = co (.42;-tii , ua .e. � 1(20) ipi C13) : 8 3 7 (7) _r." a5' • • ..- -AD. N Av . s 110 .2 • - as �_t.c •20....1&441.4 i • :,..;•• • - l 2 - N _ 0 73 . • C31) *kb . o .se ,3 4 z'.':c1;-;; : • '39r 44414 ¢: }: _ 1 l $ 5 (Z, - 11 .. Z.5 AINIE - V . • ! lig • & : _ �- g to • it l� 1 42_421 � I(11) Ii . • � :: •• D + • • .• city• _L . OpC } ; o 8r. . _ _ . • • -. G-:LP.7 .• ''•• . Z i , ...e. I Mee) 2.t7,4a -_mss•• I ! L.:.. (3. . -. • ':.* di c°4 LA 'ORT o 3=1: 2 - + _ 8 • . (42) (34) - (_ . • • • — - - O _ 7 IIIP 0 - o (45) C ri�: _ _ - (4i) ' X33) 2 O < 0 7 Q • . '. o°� fes_-s-x .(.57)-_ • • - 3 o `PFER • I - • �.(3C) • 0 6 (48.) 9J••(s-)• _5:�= --r (3a)':: . I, C3-7) -• ??� I (s3) 4110 - 74. - 0" . ..1,:"r.........- -.:.'•- �� 1821.G !, _ I! (C) .i • __La;i 1 lr 10( 61-6d+Z.‘004 ii.i:0-44) II 2 !I ----.--.---. • 0 4--- tic..t. Ccced -----1-- 1 & O : A,- (.4_4) — /-ell L_C4J-:3ge__ ____ -‘st- j--- il ,/ 3 - 1 icl-- -.RP --s-r.....e,-- - A...4,.....,_4,r,... 4:j (1<, 1.- 11 Q... -- .i 0-W2"-a - !1 • ;1 , I 1 . / 1 __•••-±-4-s_t_,____Cl. g 0 o-5. , / S / j- F. i 719/./.. -i;, / ..00;, .eAll, 12 / 'Th 'N -1 . . -- ,---..-77. . -,'"•':: '- -, - . i /';''' ' . -,..,•,,, . . ... . . • . ,.., f•Valtk\A- .`.' . ,. 0 • . . .,._ •1 s., , Location: Ramsey County, MN Database: Name/Address IRIS Data Printout Printed Tue Sep 30 15:58:17 1997 CREMAP Corp. , 1996 ( 1) Parcel ID Number 063023310016 ( 1) Municipality MOUNDS VIEW ( 1) Property Street Number 8005 ( 1) Property Street Name GROVELAND ROAD ( 1) Property Unit Number ( 1) Property City State Zip MOUNDS VIEW MN 55112-5812 ( 1) Property Zipcode 55112-5812 ( 1) Homestead Name 1 BLANCHARD LLOYD J ( 1) Homestead Name 2 BLANCHARD PHYLLIS I ( 1) Homestead Name 3 ( 1) Homestead Name 4 ( 1) Property Address 8005 GROVELAND ROAD ( 1) Homestead Updated 870324 ( 1) Fee Owner Last Name ETAL ( 1) Fee Owner Name 1 LLOYD J BLANCHARD ETAL ( 1) Fee Owner Name 2 ( 1) Fee Owner Name 3 ( 1) Fee Owner Name 4 ( 1) Fee Owner Address 8005 GROVELAND ROAD ( 1) Fee Owner City State Zip MOUNDS VIEW MN 551125812 ( 1) Fee Owner Zipcode 551125812 ( 1) Fee Owner Updated 890713 ( 1) Taxpayer Last Name ETAL ( 1) Taxpayer Name 1 LLOYD J BLANCHARD ETAL ( 1) Taxpayer Name 2 ( 1) Taxpayer Name 3 ( 1) Taxpayer Name 4 ( 1) Taxpayer Address 8005 GROVELAND ROAD ( 1) Taxpayer City State Zip MOUNDS VIEW MN 551125812 ( 1) Taxpayer Zip 551125812 ( 1) Taxpayer Updated 911125 ( 1) Loan Company Number • ( 1) Loan Account Number ( 1) Loan Updated 930126 ( 1) Homestead Notice Sent 921231 • ( I) Homestead Notice Ret. 930217 ( 1) Street Code 01116 ( 1) Record Type 01 ( 1) Record Number 1 Page 1 -Location: Ramsey County, IST Database: Residential `` Printed Tue Sep 30 15:58:26 1997 IRIS Data Printout CREMAP Corp. , 1996 �( 1) Parcel ID Number 063023310016 ( 1) Property Type SINGLE FAMILY DWELLING ( 1) Property Address 8005 GROVELAND ROAD ( Municipality MOUNDS VIEW ( District/Ward 59 ( 1) Sale Price 1 0 ( 1) Sale Date 1 (YRMO) 0000 ( 1) Sale Type 1 0 ( 1) Sale Price 2 0 ( 1) Sale Date 2 (YRMO) 0000 ( 1) Sale Type 2 0 ( 1) Land Price 0 ( 1) Land Date (YRMO) 0000 ( 1) Lake NONE ( 1) Condition AVERAGE ( 1) Construction FRAME ( 1) Exterior Wall STUCCO ( 1) Trim NONE ( 1) Basement NONE ( 1) Garage DETACHED ( 1) Heat ( 1) Central Air NO ( 1) Property Location INNER . ( 1) Walkout NO ( 1) Number of Stories 1 STORY ( 1) Street Code 1 NO ( 1) Street Code 01116 ( 1) Lot Width 153 ( 1) Lot Depth 224 ( 1) Lot Area 34272 ( 1) Trim Area 0 ( rea - Ground 974 ( ea - Above Ground 0 1) Total Living Area 974 1) Lev Dev Area 0 1) Finished Area 0 1) Garage Capacity 2 ' 1) Garage Area 576 1) Garage Const. Year 77 t 1) Pool Area 0 1) Number of Rooms 6 ' 1) Number of Bedrooms 3 1) Number of Bathrooms 1.00 1) Masonry Fireplace 0 1) Metal Fireplace 0 1) Deck Area 0 1) Neighborhood No. 025 1) Neighborhood Factor 1.050 1) Year Built 1949 • 1) Porch Enclosed 0132 1) Override Code 00 1) River Code 0 1) River NO 1) Batch No. 000 1) AEP Land 0022610 1) Permit Type 1 HTG 1) Permit Date 1 8408 1) Permit Type 2 1 permit Date 2 0000 1ermit Type 3 1) Permit Date 3 0000 1) Sewer Available Y 1) Water Available Y 1) Second Floor Exp. 0000 1) Third Floor Exp. 0000 1) Bsmt Adjustment Sign N Page 1 Location: Ramsey County, MN Database: Residential ; IRIS Data Printout Printed Tue Sep 30 15:58:26 1997 CREMAP Corp. , 1996 ( 1) Bsmt Adjustment Area 974 ( 1) Last Reviewed 821004 ( 1) Porch Screened 0000 ( 1) Topography LEVEL • ( 1) Homesteaded YES ( 1) Percent Comp. 1.00 ( 1) Not Finished Amount 000000 ( 1) 1679 Year 1 00 ( 1) 1679 Year 1 ( 1) Group Number ( 1) Quartile Year ( 1) Added Improvement 000000 ( 1) Record Number 1 • • Page 2 Location: Ramsey County, MN Database: Current Tax IRIS Data Printout Printed Tue Sep 30 15:58:39 1997 ©BMW Corp. , 1996 ( 1) Parcel ID Number 063023310016 ( (7,2) ( 1) Record Number 1 ( 1) Record Type 04 ( Loan Company ( oan Account ( 1 Last Year Viewed 0000 ( 1) First Year Delinquent ( 1) Market Value - Land 22600 ( 1) Market Value - Bldg 51000 ( 1) Market Value - Other 0 ( 1) Exempt Mkt Val - Land 0 ( 1) Exempt Mkt Val - Bldg 0 ( 1) Mkt Val - New Impr. 0 ( 1) Mkt Val - 10 Acre 0 ( 1) Qualifying Tax 1029.86 ( 1) County Tax 329.26 ( 1) Municipality Tax 185. 64 ( 1) School Tax 403.29 ( 1) Special District Tax 8.04 ( 1) School Referendum Tax 66.23 ( 1) Other Metro Tax 37.40 ( 1) Municipality MOUNDS VIEW ( 1) School District 621 ( 1) Watershed RICE CREEK ( 1) Sub-Watershed District 1 ( 1) Sub-Watershed District 2 ( 1) Sub-Watershed District 3 ( 1) Sewer District 1 ( 1) Sewer District 2 ( 1) Tax Increment Distrcit ( 1) Mid-year Homestead ( ljilfiplit Homestead ( lirct. Owned by Homesteader1.0000 ( 1) Percent Homesteaded 0.0000 ( 1) Local Tax 1029.86 ( 1) Homestead Credit 0.00 ( 1) Agriculture Credit 0.00 ( 1) Disaster Credit 0.00 ( 1) Enterprise Zone Credit 0.00 ( 1) Fiscal Disparity Credit 0.00 1) Tax Increment Tax 0.00 ( 1) Tax Inc. Excess Tax 0.00 ( 1) Market Tax 0.00 ( 1) Education Aid 0.00 ( 1) Local Gov't Aid 0.00 ( 1) Human Services Aid 0.00 ( 1) Hmstd & Ag. Credit Aid 1154. 48 ( 1) Disparity Red. Aid 0.00 ( 1) Orig Net Advalorem Tax 1029. 86 ( 1) Orig Spec. Assort Tot. 25.56 ( 1) Tax on Rental Portion 0.00 ( 1) Taxpayer Year 1996 ( 1) Exempt Owner Code • ( 1) Exempt Use Code ( 1) Full Market Value 736.00 ( 1) Value Group 1 U H A 00001595 00000752 1) Value Group 2 1) Value Group 3 1) Value Group 4 1lue G :ou 1) Value Group 6 1) Value Group 7 1) Value Group 8 1) Value Group 9 1) Value Group 10 Page 1 7 97- ORDINANCE NO_ • CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA AN ORDINANCE AMENDING TITLE 1200, CHAPTER 1204 OF THE MOUNDS VIEW MUNICIPAL CODE RELATING TO PARK DEDICATION FEES_ THE CITY OF MOUNDS VIEW ORDAINS: Section 1. Section 1204.02, subd. 4 of the Mounds View Municipal Code is amended to read: Subd. 4. Dedication for Residential Lands: The subdivider of any tract of land which is to be developed for residential uses shall dedicate to the public for public use as parks, playgrounds, public open space or storm water holding areas or ponds, that dollar value of the tract to be subdivided, which corresponds with the • applicable deasity size of the subdivision in the following schedule: Subdivision Size Cash Dedication Gross Density Per Acre Residential uses onparcel(s) with 5% of market a total area of less than one acre value of land 0.0 2.4 Dwellits per acre S100.00 2.1 3.9 Dwelling upper aero 150.00 ^00-89 1.1 5.0 Dwelling units per asre 254.00 Over 5.0 Residential uses i 10% of market on parcels) with a total area of one acre or greater value of land Section 2. Section 1204.02, subd. 5 of the Mounds View Municipal Code is amended to read: 41 Subd. 5. Dedication for Commercial and Industrial Lands: The subdivider of any tract of land which is to be developed for commercial and industrial uses shall dedicate RCL23462a M3125-67 /Z 3Ottd 0IESLEEZI9°QI N3Atl?19 8 ACI NN3M°WO?13 be=EL LS-0E-d3S to the public for public use as parks, playgrounds, public open space or storm water holding areas or ponds, ten percent (10%) of the land of the proposed • subdivision or, at the option of the Municipality, an equivalent of cash equal to ten percent (10%) of the market value of the land at the time of the subdivision. Section 3. Section 1204.02, subd. 6 is amended to read: Subd. 6. Dedication for Re-Subdivision: For any subdivision of a parcel on which a cash dedication for parks has previously been made but on which an additional cash dedication is required due to re-subdivision, the amount of cash dedication required on the re-subdivided parcel(s)to be developed for residential uses shall be based on the Hew -density market value of the land at the time of re-subdivision based on the schedule set forth in subdivision 4 of this section less any applicable credit for the prior cash dedication. The amount of cash dedication required on the re-subdivided t3arcel(q1 to be developed for commercial or industrial uses shall be based on ten percent (10%) of the market value of the land at the time of re-subdivision less any applicable credit for the prior cash dedication. (1988 Code §42.13) Section 4. This ordinance takes effect thirty days after its publication. Adopted this day of , 1997 • ATTEST: Mayor Duane McCarty (SEAL) Chuck Whiting, City Administrator i 8=130624 MII125-47 E/E 30ttd OIEBLEEZIS'aI N3AK2[0 '8 AQ3NN37{'WO2[3 SO' CI L6-0E-d3S Item No. 12 Staff Report No. °I7- 33e— • Meeting Date 10-6-97 Type of Business WK WK: Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Work Session Staff Report To: Mounds View Economic Development Authority From: Cathy Bennett, Director of Economic Development Item Title/Subject: Status of Development Assistance Agreement for Building N in Mounds View Business Park Date of Report: October 2, 1997 I have been in contact with Tim Nelson of Everest Development since the August 25, 1997 EDA meeting where the proposed Development Assistance Agreement was tabled until the amount of park dedication fee was determined in relation to the re-subdivision of the land. Staff determined that the park dedication fee due would be $56,771. After several correspondences, Everest has reluctantly agreed to pay the park dedication fee determined by • staff with several conditions. I am planning on bringing a resolution forward for consideration at the meeting on October 13, 1997. I would make a provision in the resolution and agreement that would require the payment of the park dedication fee in full prior to the execution of the agreement. I wanted to give a status report and solicit any feedback prior to the meeting on the 13th. 410 • CM?'O Il © LDS Phone: (612)784-3055 P ��p ,oma E Uv Fax: (612)784-3462 d'rPss• Partner' September 3, 1997 Mr.Timothy Nelson The Everest Group,LTD 2665 Long Lake Road, Suite 330 Roseville, MN 55113 Dear Tim: • Jim Ericson and I have reviewed the Mounds View City Code, information you presented and previous plat maps and documentation relating to the park dedication fees in the Mounds View Business Park. We have come to a conclusion for an amount due for park dedication in the platting of the parcels associated with Building N taking into consideration the following information. • Building N includes the following parcels and was appraised for$615,000 or$2.05 per sq. ft. • 08-30-23-44-0002(93,220 sq.ft.)-Program Land Addition 08-30-23-44-0012(101,886 sq.ft.)-Program Land Addition • • 08-30-23-44-0016(5,781 sq.ft.)- Outlot A,MV Business Park East(portion of total) 08-30-23-41-0012(99,241 sq.ft.)-Pinecrest Addition(portion of total) • The Mounds View City Code, Section 1204.02. Subdivision 6 Dedication for Re-Subdivisions, states that"For any subdivision of a parcel on which a cash dedication for parks has previously been made but on which an additional cash dedication is required due to re-subdivision,the amount of cash dedication required on the re-subdivided parcel(s)shall be based on the new gross density less any applicable credit for the prior cash dedication. • In 1974, $8,500 was paid on the Program Land 1st Addition which included the following parcels, 08-30-23-44-0002, 0012, 0011, 0004, 0007, 0008, 0009, and amounts to 433,169 sq. ft. of land for an estimated .02 cents per sq.ft. paid or an assumed market value of.20 cents per sq.ft. • In 1994 as part of the C.G. Hill Development, $14,172.73 was paid which included parcel 08-30- 23-44-0016 or Outlot A. This was based on a market value of$1.43 per sq. ft. Outlot A is estimated to be 9,289 sq. ft. of land of which 5,781 sq.ft. is included in building N plat. S n 2401 Highway 10•Mounds View, MN 55112-1499 The Everest Group • Page Two 9-3-97 '''Based on these assumptions which have been sufficiently documented by Everest and verified by City Staff, the following is the calculation for park dedication due for Building N. Total Gross Area Building N: Q+ 300,I28 sq.ft. x$2.05=615,000 x 10%=$61,500 ' Minus credit for prior cash dedication for area included in plat: 93,220 sq.ft.+ 101,886 sq.ft. = 195,106 x$0.20=39,020 x 10%=$3,902 (Program Land Add) v� 5,781 sq.ft.x$1.43 = 8,267 x 10%=$827(MV Business Park East Outlot A) Total Due for Park Dedication: $61,500-($3,902+$827)=$56,771 Upon written confirmation that payment will be made to the City of Mounds View in the amount of $56,771 for park dedication fees in relation to the plat for building N, I will schedule consideration of the Development Assistance Agreement for EDA action at the next possible regular meeting. If you have any questions feel free to contact me at my direct number 717-4002. Sincerely, • athy B nnett EDA Executive Director cc: EDA Board Members Chuck Whiting, City Administrator Jim O'Meara, Briggs & Morgan Jim Ericson, Planning Associate Bob Long, City Attorney Pvvr.r,_C .6 A-14-(1 . 05 0oC/(1 • Pfro - L0-01r /gc /O & a.o -a .05) 3(0( C�3 f Ia cis l� . 3 5?5-7 ig CI- (43 ' c s 31,0 X191 �` a� THE EVEREST GROUP LTD S September 18, 1997 Via Facsimile 784-3462 and Regular Mail Ms. Cathy Bennett EDA Executive Director CITY OF MOUNDS VIEW 2401 Highway 10 Mounds View, MN 55112-1499 Re: Mounds View Business Park East 2nd Addition Plat Application and Park Dedication Fee (Building N Project) Dear Cathy: As you know, we disagree with your proposed interpretation and application of the • Mounds View subdivision/park dedication ordinance to the noted project, as set forth in your September 3, 1997 letter. Upon receipt of your September 3 letter, I called you and informed you of our disagreement. You referred me to City Attorney Bob Long, with whom I had a lengthy telephone conversation. In that conversation, I detailed how your proposed application of the park dedication requirement to this project is contrary to the language and intent of the Mounds View subdivision ordinance and represents a radical departure from how the City has applied the same ordinance to similar re-subdivision applications in the past. Several different City administrations over an extended period of time have consistently applied the ordinance so as not to require additional park dedication fees on the re-subdivision of commercial land for which park dedication fees have previously been paid on a prior subdivision. Mr. Long acknowledged that he anticipated our disagreement with your proposed application of the park dedication requirement, and that the language of the current ordinance does not clearly support your interpretation. On September 8, 1997, we submitted a Planning Application for the Building N replat (Mounds View Business Park East 2nd Addition). The identical replat of the Building N site was originally approved by the City in 1994 under the current subdivision/park dedication ordinance. We request that the Building N plat application be scheduled for review and consideration at the first available City Council meeting. Since the application involves reapproval of the same plat previously approved, we do not believe Planning Commission review is necessary. We look forward to the opportunity to discuss the plat application and park dedication matter with the Council in the near future. 2665 Long Lake Road Roseville, MN 55113 (61') 636-5500 Fny• (61 21 R2 Page Two • September 18, 1997 Ms. Cathy Bennett CITY OF MOUNDS VIEW Since the park dedication issue must be resolved before the plat can be finalized, we also see no reason why EDA action on the Building N Development Assistance Agreement need be delayed any longer. Accordingly, we request that the Development Assistance Agreement be scheduled for consideration at the next available EDA meeting. Thank you for your consideration. Please advise us of your intentions in the scheduling of these matters. Sincerely, THE EVEREST GROUP, LTD • imothy J. Nelson TJN:Ic cc: EDA Board Members Chuck Whiting, City Administrator Jim O'Meara, Briggs & Morgan Jim Erickson, Planning Associate Bob Long, City Attorney M 4.em18 Win/Data/Letters • 470 Pillsbury Center Kennedy 200 South Sixth Street Minneapolis MN 55402 (612) 337-9300 telephone &Graven (612)337-9310 fax e-mail:attys@kennedv-graven.com CHARTERED ROBERT C. LONG Attorney at Law Direct Dial(612)337-9202 September 19, 1997 Mr. Timothy J. Nelson The Everest Group Ltd. 2665 Long Lake Road Roseville MN 55113 RE: Response to Your Letter of September 18, 1997, Regarding Park Dedication Fee for the Building N Project Dear Mr. Nelson: In your September 18, 1997, letter to Cathy Bennett, Executive Director of the Mounds View • Economic Development Authority (EDA), you appear to have deliberately misrepresented and mischaracterized statements attributed to me from our telephone conversation regarding the park dedication fee issue. Your efforts to misrepresent our conversation are deeply disturbing. Your actions in this regard give me serious personal reservations about having continued discussions or negotiations with you relating to the park dedication fee or the development assistance agreement you are apparently still seeking from the EDA. I would strongly suggest that in the future, if there are to be any future conversations between us, you refrain from misrepresenting or mischaracterizing my statements to you as a part of your negotiation strategy with the City or EDA. Sincerely, Robert C. Long City Attorney City of Mounds View cc: Ms. Cathy Bennett/ EDA Board Members Mr. Chuck Whiting, City Administrator • Mr. Jim O'Meara, Briggs & Morgan Mr. Jim Erickson, Planning Associate RC--J44,, MU2:.-i vuu u vu- 1 I11©MHDS APhone: (612) 784-3055 • A nn� •,0 111111111f. �UV Fax: (612) 784-3462 � cdr-4 • Partne s September 26, 1997 Mr.Timothy Nelson The Everest Group,LTD 2665 Long Lake Road, Suite 330 Roseville,MN 55113 Dear Tim: After reviewing your letter dated September 18, 1997 I would like to clarify my understanding of the direction regarding the finalization of the development assistance agreement for Building N in Mounds View Business Park. At the August 25, 1997 EDA meeting consideration of the Development Assistance Agreement by and between the Mounds View EDA and the Everest Group was on the agenda. After EDA discussion member Gary Quick made a motion which was seconded by member Roger Stigney to table consideration of the Development Assistance Agreement until such time as the Park Dedication Fee has been determined. This motion was passed by a unanimous vote of the EDA Board. • In previous correspondences the City determined that the Park Dedication Fee for the re-subdivision of the land for Building N amounts to approximately$57,000. It is clear that the Everest Group does not agree with this amount. I will schedule consideration of the Development Assistance Agreement for the EDA meeting on October 13, 1997 with a recommendation for approval contingent upon payment by the Everest Group of park dedication fees in the amount specified above. If the Everest Group would like to delay action and/or continue any negotiation on the Development Assistance Agreement I would request that an additional$1,000 deposit be submitted immediately. Otherwise, I will proceed as noted above. Sincerely, Cathy Bennett Director of Economic Development cc: EDA Board Members Chuck Whiting, City Administrator Jim O'Meara,Briggs &Morgan Bob Long, Kennedy& Graven • Jim Erickson, Planning Associate ■TFO Mfi I'� 2401 Highway 10•Mounds View, MN 55112-1499 Equal Opportunity Employer 107.=VOW pacer 6126360183 EVEREST GROUP 597 P02 SEP 30 '97 17:08 IP THE EVEREST GROUP LTD September 30, 1997 Ms. Cathy Bennett Director Economic Development CITY OF MOUNDS VIEW 2401 Highway 10 Mounds View, MN 55112-1499 Dear Ms. Bennett: I am writing in reply to your letter dated September 26, 1997, which we received today. io You are correct in stating that The Everest Group does not agree with your park dedication fee calculation of $56,771.00, as set forth in your prior correspondence of September 3, 1997. We believe your calculation of the fee is improper under City Ordinance Section 1204.02, and inconsistent with the City's application of its park dedication ordinance to several other similar re-subdivisions of commercial/industrial land. We also disagree with your characterization that "in previous correspondences the City determined that the park dedication fee for the resubdivision of the land for Building N amounts to approximately $57,000.00." Staff offered a position on calculation of the park dedication fee. Under your ordinance, the City Council, which has not yet taken action on this matter, determines the park dedication fee. Notwithstanding our disagreement with staffs position as described above, we are interested in finalizing the Building N Development Assistance Agreement, and reluctantly agree to payment of a park dedication fee in the amount of $56,771.00, conditioned on the following: 1. Approval of the Development Assistance Agreement in the form presented at the August 25, 1997, EDA meeting, but with a substantial completion date of 12/31/02 in Section 3.4(c); 2. The $56,771.00 cash park dedication fee is to be paid in full at the time of execution and recording of the plat for Mounds View Business Park East 2nd Addition; 2665 Long Lake Road b1Gb�bblti5 tVtK5T GROUP 597 P03 SEP 30 '97 17:06 A • Page Two September 30, 1997 Ms. Cathy Bennett CITY OF MOUNDS VIEW 3. The plat is approved as submitted, with preliminary review by the Planning Commission on October 1, review and recommendation of the Planning Commission on October 15, and approval by the City Council at a public hearing on October 29, 1997, per the schedule outlined by Jim Ericson. We request that Staff process Subdivision and Development Assistance Agreement approvals and notify us when the approvals are concluded and the Development Assistance Agreement is available for execution. Sincerely, • THE EVEREST GROUP, LTD imothy J. Nelson TJN:Ic cc: EDA Board Members Chuck Whiting, City Administrator Jim O'Meara, Briggs & Morgan Bob Long, Kennedy & Graven Jim Ericson, Planning Associate • 1 • • • Item No. Staff Report No. C7'• o�oZ3L Meeting Date: October 6, 1997 Type of Business: WK WK: Work Session;PH:Public Hearing; CA:Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and members of the City Council From: Bruce A. Kessel, Finance Director Item Title/Subject: Selection of accounting firm to perform financial audits for the years ending December 31, 1997, 1998, and 1999 Date of Report: September 29, 1997 In the past, the City has entered into three year contracts with an accounting firm to perform an independent audit in accordance with state statutes. For the last twelve years, the firm that was used was Tauges Redpath& Co, Ltd. Our contract with them expired with the completion of the 1996 audit. I prepared a request for proposals in accordance with standards set forth by the Government Finance Officers Association and mailed the information to eleven firms. In addition, I placed a legal advertisement to inform any other interested firms that we would be considering proposals. It should be noted that the services requested are considered to be professional services and as • such, do not require competitive bids nor does the contract for services need to be awarded to the lowest bidder. The proposal indicated that the proposals would be evaluated based upon the qualifications of the firm and individuals assigned to the engagement,the responsiveness to the request for proposals as well as price. Bids were requested for three years;prices were not to exceed maximums which allow the City to cancel the contract at the end of any year with no penalty. The proposals were to be presented based upon two options: 1) The firm selected would perform all the schedules and would prepare the required annual report; and 2) City staff would prepare most schedules and would prepare the required annual report. Five firms submitted proposals. The firms range in size from one office firms with twelve professional staff to regional firms with numerous offices and 500 professional staff. One firm performs audits for 5 cities and several perform audits for more than 50 cities; the size of the cities varies from populations of 100 to 50,000+. Estimated hours for completing the engagement ranged from 165 hours to 240 hours under the alternative bid for 1998 at average hourly rates ranging from $57.92 to $74.59. I used five equally weighted factors to evaluate the proposals: the firm, the staff assigned, similar clients, the responsiveness of the proposal, and price. For price, I had informed the firms that had contacted me that I would be using the option where the City perform some of the schedules and the required report. Since the proposals were for three years, I also used the second year of the proposal for the evaluation. Based upon this evaluation with 100 points City of Mounds View Staff Report September 29, 1997 Page 2 maximum, the firms ratings were as follows: Kern, DeWinter, Viere, Ltd. 93.64 Abdo, Abdo, Eick, & Meyers, LLP 91.00 Larson,Allen, Weishair& Co., LLP 90.74 Tauges, Redpath& Co. Ltd. 87.00 Boeckerman, Heinen& Mayer, P.A. 80.43 Attached is a summary of information from the proposals. A have several copies of the complete proposal available for inspection. All the firms for which we received proposals appear to be quality firms and each has unique aspects that could be of value to the City. However, based upon the proposals received, Kern, DeWinter, Viere, Ltd, appears to provide the most extensive services at the most competitive price and as such, it is recommended that they be awarded the contract for auditing services as of and for the years ending December 31, 1997, 1998, and 1999. • • • co) inId' co O M O OI0 0in M o0'vo co) voI Q N cod0 coO\ \O ', N� N- N M N R O1 O \D V' N 4 C M ;N in I vo y ,-» • I.0 L p in v1 I N O O 0 O I N O v) O\ N 00 \D C> .. \D \D O -. 4N C0\, N 000 001..•. In N , =Q a\ O .4 N M v M ~I N N \D C ,,, 01 ,-, -- -. I -» L. z" '" I , a) C . O 1 17., j= O v1 N O OIv1 0 01v1 0 010 Cl 00 VD N \D 00 0 Tkr)C\ 0 0 IN 0 010 M � N o0 O� in —,i v1 N d 1 ' N I ri N T:, ON C\ I in M I N M in M I\D v) \D 0.4 I O O I O O vO O O CO O O O N l C1 v1�00 00 N I v1 O \D \ M in (CT C\ C\ O O C1 wa1N \DM4Nre) 06MN00 � MI.., C� O1 \D \O N 00 v) MN 00 \D �. — N — N L 1 7: — O OIO O O O C\ \D O v1I0 00 N v'1 O \OHO O M Cl O OIC\+ O OI"' O O C1 p 7 CO \O NIC v1 M ^, \D M I\G \D M t: [s- MI,__ y C O1 v; \D r; N N in N IN 00 \p C/5 01 "-, N N I cn RIL. 11 Ip = O v, 0 00 O 0100 O C\1 CT 0 0 I in 00 C•1 d \D d' O M •-, 0 O I\D 0 NIN O 0 Cl' v N O\ N in M 00 C\ M 4 co M 106M aCA rt' N \D \D in N I\O o0 ,\D 1.-4N I • 3.. vlz c) t, 5 .0 Cj N .-, in v1 N N O V c4 04C W 4-1 C3 O C L. 0 c.. .J y O in in 0co N w N N :7r Lot0 O zL w 0 Cj U M .. .. E C.711 C Q z Cn0 S. RI 73 °? al cis 0 L. ' •UJ "Q • 47 65 C _^. O, 'B 3 N 0 di0 d (1.) - 0 cis f -v o 0.0 i d G a H Item No. o'ZD Staff Report No. 97-a2�{-�-C, Meeting Date: October 6, 1997 • Type of Business: WK WK: Work Session;PH:Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and members of the City Council From: Bruce A. Kessel, Finance Director Item Title/Subject: Selection of accounting software Date of Report: October 3, 1997 Background. During the 1970's, the City, along with numerous other cities, used a firm to batch process its transactions on a central computer system. During the 1980's, this firm developed software that would operate on mini-computers which we upgraded to. Initially, this firm upgraded and enhanced the software, but in the 1990's, it made a corporate decision to not enhance its product. Over the last five years, the number of cities using the software has decreased substantially and all the cities remaining on the system are all looking to move to other software within the next year. In addition,the hardware that is used to operate the system is obsolete and can no longer be replaced cost effectively. As such, the City has been looking to replace its software and hardware for the last several years. • Last April, the City reviewed several accounting software packages, and proposed purchasing software from Tauges Redpath. There were several procedural matters that were not followed in accordance with existing policies, including that the contract was not approved by the Council (issue was discussed and budget modifications were made but the software purchase did not actually get approved), the mayor did not sign the contract, and it is subject to interpretation as to whether the purchase was required to follow state contracting procedures. These issues were discussed with Tauges Redpath and in early 1997, the contract was terminated and $14,800 was refunded to the City. As a side note, it is my understanding that Tauges Redpath has only five customers using their product and has made a decision to no long enhance this product; as a result, if the contract would not have been terminated, we may have been in the same as we currently are with our existing software vendor. Over the last several months, we have contacted other Minnesota cities to obtain information relating to the software they use and their associated experiences, obtained names of additional vendors from trade magazines and seminars, etc. We then contacted the software vendors for additional information and eliminated software that we felt was out of our price range. For the vendors that were left, we then had them present detailed information including a demonstration of their product. We also placed a legal advertisement for bids for accounting software and did not receive any response. See the attached summary of the procedures that were followed. Method used to evaluate systems. Vendors all package their produce differently and as such, • we attempted to include comparable systems for all vendors to insure a fair comparison. For LOGIS, the information is stored on their mainframe computer at their facility and we would be City of Mounds View Staff Report October 3, 1997 Page 2 connected by a leased telephone line; for the other systems, we assumed that we would need to • purchase a new computer file server in year one and year six, and that the software purchased would need to be upgraded to a new platform in year six at the same cost as the initial purchase. While this may not be needed, it provides a conservative method to evaluate the products in relationship to LOGIS. LOGIS - after first contacting them, they revised their pricing structure with discounts in the first several years. They recommended looking at a ten year period to get a true picture of the actual Information System's cost. Overall, LOGIS appears to be a provide a good product, however, it still appears to be very costly. In addition, several of the cities that we contacted who use LOGIS were exploring other options; due to LOGIS's pricing practice of allocating its costs between all cities on their system, as the number of users decreases, the cost to the other users will likely increase. While the offset should also be true (more cities should lower costs), LOGIS has not added any new cities in the last several years. In addition, LOGIS indicated that it intends to change some of its programs within the next several years which would require additional conversions and training. Overall, the software does not appear to be in the best long term interest of the City. Banyon - a low cost system without many capabilities or enhancements. Enhancements and support are lacking and most cities we contacted indicated that as a result, they are looking for new software. Also, most cities indicated that they have been trying to obtain a date when a • windows product would be available but have not receive any indication other than that it is being developed. This would likely result in us being required to use the existing product initially and then to convert to a new product in the next several years; this would require additional training. Overall, the software does not appear to be in the best long term choice for Mounds View. Micro Arizala. This firm has few customers in our region. Roseville presently uses them but has indicated that they are looking for a new system. The product appears to be similar to Banyon in that it has few options or enhancements. We also had to contact them numerous times before they would return our phone calls which appears to confirm some of the comments we heard relating to poor customer service. Overall, the software does not appear to be in the best long term choice for Mounds View. Computer Management Systems. This firm has a large presence in Iowa and Wisconsin and recently purchased another vendor that had a large presence in Iowa, Wisconsin and Minnesota. They are in the process of combining their product lines and will have two different products to offer, one being written in COBOL (referred to as CMS in the attachments) and the other in a windows environment(referred to as Pace in the attachments). Overall, they have in excess of 750 users within our region. All the comments we received on the windows product were vary favorable. The product should have the longest life of any of the products we looked which should reduce future costs for purchasing a new product, and training and converting to such a • product. The product also has the most capabilities which should provide the users (Administrator, Directors and Council)with better and more timely information. The system also provides the best opportunity to automate procedures presently performed manually, and to eliminate the need for duplicate systems maintained by other departments. As such, it appears that this system is the best value for the City of Mounds View. Funding. The City has the $14,800 refund that it received from Tauges Redpath for its accounting system, the finance department as $15,000 in its capital outlays -equipment remaining for the system, $1,750 remains in both the water and wastewater billing services capital equipment account, and Central Services has $6,000 designated in the capital outlays equipment account. Several funds have funds available for training. Support on the new system would be free for the first six months and at a lower cost than we presently pay for support with CSI for an additional $3,000 that would be available in 1998. Part of the system also would not be installed until 1998 and can be budgeted in the 1998 budgets for the General Fund, Water and Wastewater Funds. Overall, it the 1997 budget and the 1998 preliminary budgets should have adequate funds for the proposed purchase. Timing. Once we are authorized to proceed with the purchase of software, we will need to finalize hardware and software selections with additional input from Multi Tech(performs such services at no charge to the City) and order the necessary systems. It will take at least four to six weeks to receive the required systems. We will also have to receive training on the new system, convert part of the old system to the new system, manually set up the new system, and run parallel systems for at least one month. Ideally, it would be the most efficient to be ready to use the new system's financial and payroll systems on January 1st. If we are unable to do this, we will need to input information into both systems to insure that end of year payroll reporting, IRS 1099 reporting, and financial reports are accurate. In addition, we will need to schedule training and set up with the selected vendor and the sooner we make a selection, the more options we will have available. As such, the sooner we can proceed, the better able we will be able to get the new system up and running in the most efficient manner. Recommendation. Authorize the purchase of PACE accounting software from CMS, and authorize the Mayor and Clerk-Administrator to enter into a contract for the purchase of such software at a cost not to exceed $21,920, set up and conversion not to exceed$4,500, a server not to exceed $5,660, hardware not to exceed$5,325, optional hardware not to exceed $4,750, and training not to exceed$7,040. Staff will work with CMS and Multi Tech to insure that we maximize the use of equipment that we presently own or that Multi Tech will provide at no cost to the City and to minimize the out-of-pocket costs for hardware, the server and training. Finance Department Accounting System Search and Results • I. Conducted an informal poll of Twin City area cities of like size and similar needs. A. What system are you currently using in the Finance Department? B. Are you satisfied with your present system? C. Are upgrades timely and support available and accurate? D. If you are presently looking, what are you looking at and why? II. Generated a list of possible software vendors from this poll and a list provided by the Intergovernmental Information Systems Advisory Council. III. Visited vendors and requested information while attending the Government Finance Officers Association convention. A. What is the average size of the cities you are currently serving? B. If appropriate, send information regarding your software's capabilities and pricing. IV. Reviewed packets received. A. Called vendors with questions more specific to our needs. B. Reviewed general pricing for reasonableness. . 1. Systems ranged from extremely simple and rigid to quite complex and costly. 2. Cost constraints and the desire to keep it simple helped to narrow the search. V. Invited the most promising candidates to demonstrate systems. A CMS 1. Simple system, easy to set up but somewhat inflexible. 2. Affordable. 3. No Project Management module. 4. Workable with some concessions on our part in the area of Payroll. 5. Good Utility Billing package. 6. Have converted some CSI customers already so they have good conversion experience. B. Pace 1. System can be as simple or as complex as you need. Requires more set up time because of this. 2. Still in the affordable range. 3. Workable with no concessions as to our needs. 4. References very happy with conversion/training/support and results. 5. Regional firm with many users in the Twin Cities Metropolitan Area. 6. New, but tested, software. Indicates no near term changes. . 7. Large support staff. • • C. Banyon Data Systems 1. Inexpensive. 2. Simple, inflexible system. 3. Very small support staff. 4. No recent upgrades although the salesman promised upgrades on everything soon. 5. Reference check verified suspicions about lack of upgrades and slow support. Although users with low expectations and needs were satisfied at the value. 6. Near term upgrades would necessitate an extra conversion of data and more education on a new system. E. LOGIS 1. Consortium provides users with high quality software otherwise out of the price range of a city the size of Mounds View. 2. Pricing policy dependent on the consumer base remaining the same. References indicated there may be some change. 3. Looking at some major software changes within the next year, requiring more education. 4. Initial outlay small due to the deep discounts given to attract new users. Ten year cost outlay study indicates it would be quite costly. VI. Conclusion A. Based on the various analyses performed, we have concluded that the financial management, payroll, and cash receipts software that would provide the City of Mounds View with the best value would be the Pace System from Computer Management Systems, Inc. For utility billing, the CMS GT Water Billing system should be purchased. B. See the attached Exhibits 1 and 2 for the results of the cost analyses based on initial outlay and a ten year cost projection. C. Exhibit 3 illustrates the initial projected outlay for the recommended system and the source of funds to be used. EXHIBIT 1 1 Ten Year Cost Comparison • Vendor Name: CMS Pace Banyon Micro Arizala Logis System Software: General Ledger $ 12,750.00 $ 18,000.00 $ 13,240.00 $ 10,200.00 $ 93,039.00 Accounts Payable - 9,800.00 - Accounts Receivable 5,600.00 4,840.00 9,800.00 - Bank Reconciliation - 8,800.00 - Budget Preparation " " - - - Central Cashiering 12,750.00 14,400.00 8,840.00 - - Extended Report Writer " " - 7,400.00 - Fixed Assets 3,060.00 10,500.00 - 6,600.00 7,756.00 Payroil\Personnel 9,180.00 14,400.00 11,840.00 8,400.00 52,503.00 ACH Interface for Payroll&Utility Billing - 1,800.00 - - - CMS GT Water Billing 17,510.00 11,250.00 12,240.00 7,600.00 133,944.00 Meter Management 2,550.00 2,250.00 790.00 6,400.00 - Sensus Interface - 2,400.00 - ` - - Equipment Maintenance/Project Mgmt. 7,650.00 5,400.00 - , - - Leased Data Line - - - - 57,000.00 Master Files 2,000.00 2,000.00 1,000.00 -I-� - - History Files 1,500.00 1,500.00 6,000.00 - - System Set Up/Install 1,000.00 1,000.00 700.00 System Software 69,950.00 90,500.00 58,790.00 75,000.00 344,942.00 Server: GT Server for NT Workstation 2,720.00 2,720.00 2,720.00 2,720.00 - GT Client for NT Workstation(5) 2,125.00 2,125.00 2,125.00 2,125.00 - NT Workstation 4.0 OEM(Server) 3,430.00 3,430.00 3,430.00 3,430.00 - Windows 95 (5) 2,720.00 2,100.00 2,720.00 2,720.00 - PROGRESS Runtime(5) 4,700.00 ISAM Gateway for Cash Rec. 4,100.00 Single User U/SQL ODBC Server 1,000.00 1,000.00 1,000.00 1,000.00 - (Report Writer included with MS/ACCESS) Data Base Dictionaries(CMS FS,UB,PR) 1,770.00 1,770.00 1,770.00 1,770.00 - Reflections Software - - - 1,250.00 Server 13,765.00 21,945.00 13,765.00 13,765.00 1,250.00 • Hardware: Duracom Entrada 1000 Minipro 200MHz 5,220.00 5,220.00 5,220.00 5,220.00 5,220.00 Sony 16X EIDE CD-ROM 520.00 520.00 520.00 520.00 520.00 Upgrade RAM 8-64MB 1,560.00 1,560.00 1,560.00 1,560.00 1,560.00 PS2 Mouse/Pad 50.00 50.00 50.00 50.00 50.00 Accton PCI 10/100 Base T Adapter 200.00 200.00 200.00 200.00 200.00 Adaptec SCSI PCI Ultra Wide Control Kit 890.00 890.00 890.00 890.00 890.00 4.2GB Wide SCSI Disk Drive 5,620.00 5,620.00 5,620.00 5,620.00 5,620.00 Archive internal 4GB SCSI DAT Tape Drive 2,520.00 2,520.00 2,520.00 2,520.00 2,520.00 All VGA PCI Video Card 2MB 130.00 130.00 130.00 130.00 130.00 CTX 15"SVGA Color Mon./Kbd. 600.00 600.00 600.00 600.00 600.00 33.6 Baud US Robotics Modem 920.00 860.00 920.00 920.00 920.00 PC Anywhere 360.00 APC 650 Smart UPS/w/Power Chute 740.00 740.00 740.00 740.00 740.00 Hardware 18,970.00 19,270.00 18,970.00 18,970.00 18,970.00 SOFTWARE AND HARDWARE 102,685.00 131,715.00 91,525.00 107,735.00 365,162.00 Optional Hardware: Bar Code Wand 630.00 630.00 630.00 630.00 630.00 Receipt Printer 2,420.00 2,420.00 2,420.00 2,420.00 1,440.00 (Necessary for Receipt Printing) HPV SI Laser Printer 10,690.00 10,690.00 10,690.00 10,690.00 5,440.00 (24 PPM) Bar Code SIMMS 390.00 390.00 390.00 390.00 390.00 Bar Code Interface 1,600.00 1,600.00 1,600.00 1,600.00 1,600.00 OPTIONAL HARDWARE 15,730.00 15,730.00 15,730.00 15,730.00 9,500.00 ON-SITE TRAINING 12,480.00 14,080.00 5,500.00 12,480.00 - INVESTMENT $ 130,895.00 $ 161,525.00 $ 112,755.00 $ 135,945.00 $ 374,662.00 ASSUMPTIONS: • 1. Each system will be replaced after 5 years. (It is considered standard to replace systems every 5 to 7 years.) 2. Hardware will be upgraded at replacement date. 3. We used the proposed costs as replacement costs to avoid speculation on unforeseeable increases in prices. Page 1 j EXHIBIT 2 Initial Outlay Comparison • Vendor Name: CMS Pace Banyon Micro Annals Loges Cost Annual Support Cg(s, Annual Support Cost Annual Sucpor[ Cost Annual Sumo'( System Software: PACE Financial Managmtarx S 3,750.00 S 525.00 S 4,000.00 S 1,000.00 S 3,495.00 S 595.00 S 2,100.00 S 800.00 S 3,900.00 Accounts Payable , - - 1,900.00 800.00 - Accounts Receivable " - 2,800.00 - 1,295.00 195.00 1,900.00 800.00 _ Bards Reconciiatlon " - , 1,400.00 800.00 - Budget Preparation .. • _ - Central Cashiering 3,750.00 525.00 3,200.00 800.00 1,295.00 595.00 - - Extended Report Writer - 1,450.00 450.00 - Fixed Assets 900.00 128.00 2,800.00 490.00 " 1,300.00 400.00 480.00 PayrdltPenonel 2,700.00 378.00 3,200.00 800.00 2,795.00 595.00 1,950.00 450.00 3,000.00 ACH Interface for Payroll 8 Utility Billing - - 480.00 84.00 - - - - - CMS GT Water Ring 5,150.00 721.00 3,000.00 525.00 2,995.00 595.00 1,800.00 400.00 8,800.00 Meter Management 750.00 105.00 800.00 105.00 395.00 - 1,200.00 400.00 - Sensus Interface - - 640.00 112.00 - - ,r - - E.Apnert Maintenance/Project Mgrt. 2,250.00 315.00 1,200.00 300.00 - - • - - _ Leased Data Use _ _ _ - cj _ - 3,000.00 Master Files 2,000.00 2,000.00 - 500.00 - p _ _ history Fibs 1,500.00 - 1,500.00 - 3,000.00 - -e - - - System Set Upinstall 1,000.00 - 1,000.00 _ - - _ - 700.00 System Software 23,750.00 2.895.00 26.420.00 0.216.00 15,770.00 2.575.00 15,000.00 4,500.00 17,680.00 Server. GT Senor for NT Workstation 800.00 112.00 800.00 112.00 800.00 112.00 800.00 112.00 - GT C9ert for NT Workstation(5) 825.00 87.50 825.00 87.50 825.00 87.50 825.00 87.50 - NT Workstation 4.0 OEM(Server) ' 215.00 300.00 215.00 300.00 215.00 300.00 215.00 300.00 - Wtndews 95(5) 800.00 112.00 1,059.00 - 800.00 112.00 800.00 112.00 - PROGRESS Runtime(5) - - 1,175.00 235.00 _ - _ _ - ISAM Gateway for Cash Rec. - - 1.025.00 205.00 - - - - - Single User U/SOL ODBC Server 250.00 50.00 250.00 50.00 250.00 50.00 250.00 50.00 - (Report Writer Included with MS/ACCESS) Data Base Dictionaries(CMS FS.UB,PR) 520.00 73.00 520.00 73.00 520.00 73.00 520.00 73.00 - Reflections Software - - - - - - 1,250.00 Additional Software 3,210.00 734.50 5,860.00 1,062.50 3,210.00 734.50 8210.00 734.50 1.250.00 Hardware: - - _ _ - _ - - _ Du acofn Entrada 1000 Mripo 200MHz 915.00 339.00 915.00 339.00 915.00 339.00 915.00 339.00 1,254.00 Sony 18X EIDE CD-ROM 135.00 25.00 135.00 25.00 135.00 25.00 135.00 25.00 180.00 Upgrade RAM 8-84MB 405.00 75.00 405.00 75.00 405.00 75.00 405.00 75.00 480.00 PS2 Mouse/Pad 25.00 - 25.00 - 25.00 - 25.00 - 25.00 Accton PCI 10/100 Base T Adapter 55.00 9.00 55.00 9.00 55.00 9.00 55.00 9.00 84.00 • Adaptec SCSI PCI Ultra Wide Control Kit 4.2GB 320.00 25.00 320.00 25.00 320.00 25.00 320.00 25.00 345.00 Wide SCSI Disk Drive 1,710.00 220.00 1,710.00 220.00 1,710.00 220.00 1,710.00 220.00 1,930.00 780.00 Aeldve Internal 4G8 SCSI DAT Tape Drive 680.00 120.00 880.00 120.00 880.00 120.00 880.00 120.00 An VGA PCI Video Card 2MB 85.00 - 65.00 - 65.00 - 65.00 - 85.00 CTX 15"SVGA Color Mon./Ked. 300.00 - 300.00 - 300.00 - 300.00 - 300.00 33.8 Baud US Robotics Modem 215.00 49.00 185.00 49.00 215.00 49.00 215.00 49.00 284.00 PC Anywhere - - 180.00 - - - - _ APC 650 Smart UPS/w/Power Chute 370.00 - 370.00 - 370.00 - 370.00 - 370.00 Hardware 5,175.00 862.00 5,325.00 862,00 5,175.00 86200 5.175.00 862.00 5,037.00 SOFTWARE AND HARDWARE 32.135.00 4,291.50 37,405.00 6,140.50 24,155.00 4,171.50 23,385.00 8096.50 24,967.00 S's: Bar Code Wand 315.00 - 315.00 - 315.00 - 315.00 - 315.00 Receipt Printer 720.00 98.00 720.00 98.00 720.00 98.00 720.00 98.00 720.00 (Necessary for Receipt Printing) HPV SI Laser Printer 2,720.00 525.00 2.720.00 525.00 2720.00 525.00 2,720.00 525.00 2,720.00 (24 PPM) Bar Code SIMMS 195.00 - 195.00 - 195.00 - 195.00 - 195.00 Bar Code Interface 800.00 - 800.00 - 800.00 - 800.00 - 800.00 OPTIONAL HARDWARE 4,750.00 623.00 4,750.00 623.00 4,750.00 823.00 4,750.00 623.00 4,750.00 ON-SITE TRA96N0 6.240.007.040.00 2,750.00 - 6.240.00 - - INVESTMENT $43,126.00 $ 4,914.60 $43,136.00 $ 6,763.60 5 31,666.00 $ 4,794.60 $34,375.00 $ 6,713.60 i 23,717.00 Note: LOGIS acts as a service bureau,so the cost is not an investment in software but a charge for annual support. • Page 1 EXHIBIT 3 Pace Purchase • Cost Annual Support INVESTMENT $ 49,195.00 $ 6,763.50 Less: Accounts Receivable $ 2,800.00 $ - Fixed Assets 2,800.00 490.00 Meter Management 600.00 105.00 Six month Warranty =((4403.5!12)*5) 1,834.79 OPTIONAL HARDWARE 4,750.00 623.00 $ 38,245.00 $ 3,710.71 $ 41,955.71 Available Funds: Tautges Redpath Refund $ 14,800.00 Finance Dept. 1997 Capital Outlay 15,400.00 Central Services Capital Outlay 8,000.00 Various funds available for computers 5,000.00 $ 43,200.00 II) • Page 1 Item No. aZI Staff Report No. Meeting Date: October 6, 1997 Type of Business: WK WK: Work Session:PH::Public Hearing; CA:Consent Agenda;CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and members of the City Council From: Bruce Kessel, Finance Director Item Title/Subject: 1997 incentive pay for golf course personnel Date of Report: October 2,.1997 Last month, the City Council approved a management contract for the golf course superintendent which provided for incentive pay for golf course personnel. Under the contract, the golf course superintendent is to submit a listing of golf course personnel including wage rates and the range of incentive pay each position would be eligible to receive based upon their performance; this information is to be presented as part of the budget process. The contract is effective for 1997 and such information was not presented last year when the 1997 budget was adopted. Attached is a listing of the positions at the golf course, along with the corresponding 1997 salary rates and proposed incentive pay ranges. Total personnel costs including any incentive pay will not exceed 44% of the gross revenues at the golf course. In addition,the other provisions in the superintendent's contract restrict the amount of incentive pay that can be paid to the • superintendent. We anticipate calculating the total amount available for incentive pay in mid to late November. Payments under the incentive pay plan would be made in December for most positions except that for several positions such pay may be split with part being paid in December and the balance at the start of the 1998 golf season in the employee returns to The Bridges. It is recommended that the Council approve the attached incentive pay ranges for 1997 for golf course positions in accordance with the provisions of the golf course superintendent's management contract. • POSITION PAY RANGE BONUS RANGE z Course Mgr/Superintendent/ Mechanic $40,000 0-15% Clubhouse Manager/ Head Pro $18,00-26,000 0-5% Asst. Superintendant $18,000-26,000 0-5% 1 Asst. Pro/Clubhouse Supervisor $8-10/hour 0-3% { .Asst.Clubhouse Mgr $8-10/hour 0-3% • • Clubhouse Supervisor $7-9/hour 0-3% (several) Grounds Crew 0-2% Technician I $8-10 Grounds Crew 0-2%Technition II (several) $7-9 Grounds Crew 0-1% Maintenance $6-8 } . i Beverage Cart $5 plus tips 0-1% Driver Range Picker $5-6 0-1% Ranger $5-6 0-1% Item No. aa'" Staff Report No.6/7— Z 'c2_ Meeting Date: October 6, 1997 . Type of Business: WK WK: Work Session;PH:Public Hearing; CA: Consent Agenda;CB:Council Business City of Mounds View Staff Report To: Honorable Mayor and members of the City Council From: Bruce Kessel, Finance Director Item Title/Subject: Amendment to Deferred Compensation program Date of Report: September 30, 1997 Last year congress passed a law which modifies the terms and conditions of the deferred compensation plan offered to our employees. As a result of this new law, we need to amend our plan. The following is a summary of the deferred compensation plans we offer, the general terms and conditions of the plan and the recently adopted modifications. General information The City established an Internal Revenue Service Section 457 deferred compensation plan for its employees in 1981. Section 457 plans deal with deferred compensation plans for governmental organizations which were not allowed to participate in other deferred compensation plans. Under • this type of plan, employees could set aside up to 25% of their salary up to $7,500 per year which is not subject to state or federal income tax until it is withdrawn from the plan. Amounts could not be withdrawn until termination of employment, retirement, or upon incurring an undue hardship. Mounds View offered two plans to its employees, one through ICMA(Internal City/County Management Association), and the other through the State of Minnesota. There were several provisions in Section 457 plans that differed from provisions in the laws relating to similar programs for private employers (401K plans) including 457 plans had lower maximum contributions, loans were not allowed, ownership of the plan assets were subject to claims from the employer's creditors during bankruptcy, and several other minor differences. Various groups had been lobbying for several years to modify the laws relating to 457 plans in order that they more closely followed other plans such as 401K plans. In late 1996,they were successful in getting legislation passed and signed into law. Attachment A summarizes the changes in the recently enacted law. Action required The State legislature dealt with the terms and conditions of the plan offered by the State of Minnesota, therefore no action is required for that plan. For the ICMA plan, some of the plan provisions automatically became effective but several required our input prior to being allowed. • To provide for better documentation of the plan changes, the following action is recommended: • Adopt the suggested resolution which will formally document the revised amendments to the ICMA Deferred Compensation Plan and Trust; the City Attorney has reviewed the City of Mounds View Staff Report September 30, 1997 Page 2 • resolution and has approved the format. • New laws allow loans to employees. This may increase administrative fees and may defeat the intent for offering the program which was to provide funds for retirement. The U.S. Treasury has yet to issue guidelines for allowing and administering such loans. It is recommended to not allow loans at this time. The attached information is a summary of the plan and proposed change. If you would like the detailed information, please contact me and I will forward such information to you. • • ATTACHMENT A: OVERVIEW OF 457 LAW CHANGES Employer Action Issue Current Law New Law Reference Guide 4� Plan Level Trust 457 assets must remain solely All amounts deferred under a Employers with a 457 plan in existence the property of the employer, Section 457 plan must be on August 20, 1996 must establish a subject to the claims of the held in trust for the exclusive plan level trust prior to January 1, 1999. employer's general creditors. benefit of plan participants (However, until the trust is established, and/or beneficiaries. assets will remain unprotected.)The plan level trust may be established by • adopting the revised RC 457 plan document or by amending your own plan document with applicable language,such as language found in the RC plan document.See the • Implementation Checklist for more details. 457 Loans Because 457 plan assets are the As acknowledged in an Employers must decide whether sole property of the employer,a official Congressional report, offering loans would be desirable. If it 457 plan cannot include a loan once 457 plan assets are is decided that loans will be offered, a provision. held in a trust,a plan may plan level trust must first be established. permit loans under the A loan option is available in the revised provisions of section 72(p)of RC 457 plan document. Loans may be the Internal Revenue Code. elected by adopting the RC plan document and electing to offer loans or by amending your own plan document with applicable language,such as language from the RC plan document. See Implementation Checklist for more details. lknual Contribution The annual contribution The annual contribution Adopt revised RC 457 plan document um maximum is the lesser of(1) maximum of$7,500 will be or amend your own plan document $7,500 or(2)33 1/3 percent of indexed to increase in $500 with applicable annual contribution includible compensation. increments(rounded down) maximum language,such as language based on changes in the from the RC plan document.See Consumer Price Index.The Implementation Checklist for more first increase will likely not details. occur until 1998. 457 Postponement of Upon separation-from-service, Allows a one-time postpone- Adopt revised RC 457 plan document Beginning Payment the participant must irrevocably ment of beginning payment or amend your own plan document Date Election elect a beginning payment date date elections. For example, with applicable distribution date for plan distributions. a participant could postpone change language, such as language his/her original beginning from the RC plan document.See payment date election of Implementation Checklist for more March 31, 1997, to Septem- details. ber 30, 1998. 457 withdrawals are permitted Allows one-time employer- Adopt revised RC 457 plan document 457 Small-Balance under the following situations: or employee-initiated or amend your own plan document Account Distributions (1)separation from service distributions of 457 accounts • with applicable small-balance account (including retirement, termina- with balances of$3,500 or distribution language, such as language tion, or death)and(2)unfore- less that have been inactive from the RC plan document.See seeable emergency. (have not received contribu- Implementation Checklist for more tions)for at least two years. details. If a small-balance distribu- tion is taken from a plan,a participant can participate in • 1 • that plan again. However, this participant cannot receive another small- balance distribution from 3 the plan. RESOLUTION NO. • CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION AMENDING DEFERRED COMPENSATION PLAN WHEREAS, the City of Mounds View (the "City") has employees rendering valuable services; and WHEREAS, the City has established a deferred compensation plan for such employees that serves the interest of the City by enabling it to provide reasonable retirement security for its employees, by providing increased flexibility in its personnel management system, and by assisting in the attraction and retention of competent personnel; and WHEREAS, the City has determined that the continuance of the deferred compensation plan will serve these objectives; and WHEREAS, amendments to the Internal Revenue Code have been enacted that require • changes to the structure of and allow enhancements of the benefits of the deferred compensation plan: NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Mounds View hereby amends and restates the deferred compensation plan (the "Plan") in the form of the ICMA Retirement Corporation Deferred Compensation Plan and Trust. BE IT FURTHER RESOLVED that the assets of the Plan shall be held in trust, with the City serving as trustee, for the exclusive benefit of the Plan participants and their beneficiaries, and the assets shall not be diverted to any other purpose. The Trustee's beneficial ownership of Plan assets held in the ICMA Retirement Trust shall be held for the further exclusive benefit of the Plan participants and their beneficiaries; BE IT FURTHER RESOLVED that the Plan will not permit loans. BE IT FURTHER RESOLVED that the City hereby agrees to serve as trustee under the Plan. • 6/E 30'dd OIESLEEZLe ar Nantemo 3 AC3NN3}{=WONT 8t : I I LS-IO-SOO Adopted this day of October, 1997. ATTEST: Mayor McCarty (SEAL) Charles S. Whiting, City Clerk-Administrator Ilk • b/6 30tld 0t£6G££ZIS:GI Nanve9 '8 AC3NN3M°WOad 8t : i t GS-t0-SOO Sinteroffice MEMORANDUM to: Bruce Kessel Chuck Whiting from: Lynnette Morgan-IA subject: Compensation Study date: October 6, 1997 As discussed at the September 2 and 8 Council meetings,the following ten cities were identified as comparable cities based on geographic area,population, similar organizations structure,job responsibilities, scope of authority and socio-economic factors. Council member Stigney indicated the following six cities to be included in the study based on comparable on tax capacity. The attached memo from Ann Antonsen, stresses the importance of choosing a well defined, logical geographical area and recommends the survey sample consist of ten cities. The ten cities selected overall best match the established criteria including population, location and proximity, Council-Administrator structure and Statutory classification. 0 The market group should be selected prior to gathering to data to ensure validity, integrity and acceptability of the study. Survey Cities (10) Population Tax Capcity('96) Savage 14,444 8,426,973 Robbinsdale 14,206 5,854,532 Prior Lake 13,752 8,327,841 Lino Lakes 13,097 7,202,201 North St.Paul 12,813 5,371,247 Mounds View 12,561 4,619,752 Vadnais Heights 12,342 8,266,754 Rosemount 11,721 9,180,957 Mendota Heights 10,757 12,395,341 Ham Lake 10,243 5,847,644 Arden Hills 9,560 9,397,073 Additional Survey Cities (6) Marshall 12,331 6,831,947 Northfield 15,667 7,264,887 White Bear Lake 10,243 12,702,088 Cloquet 11,160 6,601,883 Hutchinson 12,331 6,126,755 0 New Ulm 13,628 5,517,390 W+� +n �1-111V/ J ds50c. J 0 0. LABOR RELATIONS ASSOCIATES, INC. 7501 Golden Valley Road Golden Valley, Minnesota 55427 612/546-147040 FAX 612/548-1552 DATE October 1, 1997 TO: City of Mounds Mew City Council FROM: Ann Antonsen Consultant SUBJECT: Factors for Selecting Code Cities for a Market Stu dy To select comparable cities for a market study the City should consider the following: 1. The City should choose cities within a well-defined, logical geographic9�p should then be s geographic area has been defined the market b s Once base on population, tax elected � similar organizational structure, , assessed values within the geographic area, factors. it isa recommended ability to pay, solo-economic, and other relevant d that a sample of approxiny 10 cities be surveyed. 2. The City of Mounds Mew should select the market This will ensure the integrity, group prior to collecting data validity and acceptability of the study. Item No. .,7/3 Staff Report No.9' ?a-3 7i Meeting Date: October 6, 1997 • Type of Business: WK WK: Work Session;PH:Public Hearing; CA: Consent Agenda; CB:Council Business City of Mounds View Staff Report To: Honorable Mayor and Members of the City Council From: Bruce A. Kessel, Finance Director Item Title/Subject: Use of 4M Fund as a City depository Date of Report: September 29, 1997 Every year, the City designates institutions that can be used as a depository for City funds. For several years, the 4M Fund has been so designated but has never been used. The 4M Fund is sponsored by the League of Minnesota Cities as a short-term investment pool specifically designed to address the cash management needs of Minnesota governmental units. Along these lines, it has established procedures to allow payments from the State as well as from Ramsey County to be made directly to a 4M Fund account, thereby enabling cities to obtain several more days interest on such funds. For us, this should amount to at least several hundred dollars per year and should also reduce staff time dealing with such checks. The fund may also provide other opportunities to increase interest earnings and/or lower other costs. goIn order to participate in the 4M Fund, we need to adopt a resolution authorizing entry into a joint powers agreement in the form of a declaration of trust establishing an entity known as "Minnesota Municipal Money Market Fund" and authorizing participation in certain investment programs in connection therewith(see attachment). It is recommended that the Council adopt said resolution and authorize the Mayor, Clerk- Administrator and Finance Director to execute the necessary documents. • FORM A Minnesota Municipal Money Market Fund S MODEL RESOLUTION A RESOLUTION AUTHORIZING ENTRY INTO JOINT POWERS AGREEMENT IN THE FORM OF A DECLARATION OF TRUST ESTABLISHING AN ENTITY KNOWN AS "MINNESOTA MUNICIPAL MONEY MARKET FUND" AND AUTHORIZING PARTICIPATION IN CERTAIN INVESTMENT PROGRAMS IN CONNECTION THEREWITH WHEREAS, Minnesota Statutes Section 471.59 (the Joint Powers Act) provides among other things that governmental units, by agreement entered into through action of their governing bodies, may jointly or cooperatively exercise any power common to the contracting parties; and WHEREAS, the Minnesota Municipal Money Market Fund was formed in April 1987 pursuant to the Joint Powers Act by the adoption of a joint powers agreement in the form of a Declaration of Trust by a group of Minnesota Municipalities acting as the Initial Participants thereof; and WHEREAS, the Declaration of Trust has been presented to this board and WHEREAS, the Declaration of Trust authorizes municipalities of the State of Minnesota to adopt and enter into the Declaration of Trust and become Participants of the Fund. WHEREAS, this council (or board) deems it to be advisable for this municipality to adopt and enter into the. Declaration of Trust and become a Participant of the Fund for the purpose of the joint investment of this municipality's monies with those of other municipalities so as to enhance the investment earnings accruing to each; and WHEREAS, this board deems it to be advisable for this municipality to make use from time to time, in the discretion of the officials of the municipality identified in Section 2 of the following Resolution, of the Fixed Rate Program available to Participants of the Fund. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: Section 1. This municipality shall join with other municipalities in accordance with the Joint Powers Act by becoming a Participant of the Fund and adopting and entering into the Declaration of Trust, which is adopted by reference herein with the same effect as if it had been set out verbatim in this resolution, and a copy of the Declaration of Trust shall be filed in the minutes of the meeting at which this Resolution was adopted. The treasurer or clerk of this municipality is hereby authorized to take such actions and execute any and all such documents as they may deem necessary and appropriate to effectuate the entry of this municipality into the Declaration of Trust and the adoption thereof by this municipality. Section 2. This municipality is hereby authorized to invest its available monies from time to time and to withdraw such monies from time to time in accordance with the provisions of the Declaration of Trust. The following officers and officials of the municipality and their respective successors in office each hereby are. designated as "Authorized Officials" with full powers and authority to effectuate the investment and 3 withdrawal of monies of this municipality from time to time in accordance with the Declaration of Trust and ursuant to the Fixed Rate Program available to Participants of the Fund: • ist the name(s) and title(s) of the officer(s) who will be authorized to invest and withdraw municipality monies in and from the Fund and pursuant to the Fixed Rate Program. You may have any number of Authorized Officials; attach an additional list if necessary) Print Name/Title Signature Print Name/Title Signature Print Name/Title Signature Print Name/Title Signature The treasurer shall advise the Fund of any changes in Authorized Officials in accordance with the procedures established by the Fund. •tion 3. The Trustees of the Fund are hereby designated as having official custody of this municipality's monies which are invested in accordance with the Declaration of Trust. Section 4. State banks, national banks, and thrift institutions located either within or outside of the State of Minnesota which qualify as depositories under Minnesota law and are included on a list approved and maintained for such purpose by the Investment Advisor of the Fund are hereby designated as depositories of this municipality pursuant to Minnesota Statutes Section 118.005 and monies of this municipality may be deposited therein, from time to time in the discretion of the Authorized Officials, pursuant to the Fixed Rate Program available to Participants of the Fund. It is hereby certified that (insert name of the municipality) duly adopted-the Model resolution at a duly convened meeting of the board held on the day of , 199_, and that such Resolution is in full force and effect on this date, and that such Resolution has not been modified, amended, or rescinded since its adoption. Signature of clerk or treasurer Date of municipality • 4 i THE 4M LIQUID ASSET FUND THE 4M PLUS FUND The Minnesota Municipal Money Market Fund • Program INFORMATION STATEMENT A Comprehensive Financial Service for Municipalities Sponsored by the League of Minnesota Cities This booklet provides detailed information about the Funds. Please read it carefully and retain it for future reference. i • TABLE OF CONTENTS The Trust and the Funds 3 Investment Objectives and Policies 3 Withdrawals from the PLUS Fund 6 Trustees and Officers 6 Investment Adviser 7 Administrator 7 Custodian 7 Technical Advisory Board 8 Legal Counsel 8 Expenses 8 Daily Income Allocations 9 Computation of Yield 9 Determination of Net Asset Value 10 Portfolio Transactions 11 Reports to Participants 11 Taxes 11 Declaration of Trust 12 • Fixed Rate Program 13 • -2- THE TRUST AND THE FUNDS • The 4M Liquid Asset Fund and the 4M PLUS Fund (each a "Fund" and, together, the "Funds") are distinct investment portfolios within the Minnesota Municipal Money Market Fund (the "Trust"), a common law trust organized and existing in accordance with the Minnesota Joint Powers Act (Minnesota Statutes, Section 471.59) (the "Joint Powers Act"). The Trust and the Liquid Asset Fund were created in 1987, and the PLUS Fund was created in November 1996. Each Fund is independent of the other. Neither the Liquid Asset Fund nor the PLUS Fund will constitutes security or collateral for obligations of the other, except as may be described in the Declaration of Trust. Only "Municipalities" (defined to include Minnesota cities, counties, towns, public authorities, public corporations, public commissions, special districts and public instrumentalities, each as defined in the Joint Powers Act) are permitted to open accounts and become participants ("Participants") in either or both Funds. The address of the Trust is: Minnesota Municipal Money Market Fund do Insight Investment Management 60 South Sixth Street Minneapolis,MN 55402 INVESTMENT OBJECTIVES AND POLICIES • Investment Objectives Each Fund seeks to provide Participants with safety and stability of principal, liquidity and, within the stringent investment policies and limitations set forth below, a competitive yield. No assurance can be given that either Fund will achieve its investment objective or that any benefits described in this Information Statement will result from placement of assets in either Fund. Each Fund will employ the same investments and investment techniques. However, the PLUS Fund's objective will be to provide Participants with a somewhat enhanced investment yield (compared with that of the Liquid Asset Fund) by having a somewhat longer average portfolio maturity than the Liquid Asset Fund. The PLUS Fund will seek to achieve a longer average portfolio maturity by requiring that Participants agree to an initial 30-day investment period with respect to each investment, after which redemptions may be made upon one Minnesota banking day's notice. Participants in the Liquid Asset Fund will not have to agree to an initial 30-day investment period and may effect redemptions from the Fund at any time. Each Fund seeks to maintain a stable net asset value of$1.00 per share; however, there can be no assurance that either Fund will be able to continually achieve this goal. An investment in either Fund is not a deposit or obligation of, or guaranteed or endorsed by, any bank and is not insured or guaranteed by the U.S. Government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other federal or state agency or instrumentality. For a discussion of the expenses to which Participants of each Fund are indirectly subject, i see"Expenses." -3- IFund Investments Each Fund is specifically designed for Minnesota Municipalities. Accordingly, each Fund may invest only in securities and instruments in which Municipalities are permitted to invest directly, as delineated in Minnesota Statutes, Section 475.66 ("Permitted Investments"). Permitted Investments include: (a) Government bonds, notes, bills, mortgages and other securities which are direct obligations or are guaranteed or insured issues of the United States, its agencies, its instrumentalities, or organizations created by an Act of Congress. (b) Any security which is a general obligation of the State of Minnesota or any of its municipalities. (c) Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System. (d) Commercial paper issued by United States corporations or their Canadian subsidiaries that is of the highest quality and matures in 270 days or less. (e) Deposits in a national bank or in a state bank or thrift institution insured by the Federal Deposit Insurance Corporation, provided that any such deposit shall be insured, bonded, or collateralized as required by law and that any such bank or thrift institution shall meet criteria 1110 designated from time to time by the Trustees. (f) Repurchase Agreements with "broker-dealers" (as more fully described below) and with "banks"(as more fully described below). 1. Broker/Dealers: a. The Funds may only enter into repurchase agreements with broker- dealers which, in the judgment of the Investment Adviser (as defined below), have a reputation for sound management and ethical business practices. b. Each broker/dealer must be registered with the Securities and Exchange Commission and be a primary reporting dealer to the Federal Reserve Bank of New York. c. Broker/dealers must have at least $50 million in "Excess Capital". "Excess Capital" is that portion of a firm's permanent capital which is in excess of the minimum capital required under the Uniform Net Capital Rule of the Securities and Exchange Commission. Broker/dealer subsidiaries of companies having at Ieast $1 billion in net worth shall also be considered creditworthy, in the event of a lack of publicly available financial information. The Investment Adviser will use its best efforts to monitor the creditworthiness of broker/dealers. 41) -4- d. Broker/dealers must have short-term, unsecured debt ratings of"Al" by Standard & Poor's Corporation ("S&P") or "Pl" by Moody's Investors Service, • Inc. ("Moody's"). 2. Banks: a. The Funds may only enter into repurchase agreements with banks whose short-term, unsecured debt is rated "Al"by S&P or"P1"by Moody's. b. The Funds may only enter into repurchase agreements with banks that are among the 100 largest United States commercial banks. (g) Any other investment instruments now or hereafter designated as a Permitted Investment under applicable law. Investment Restrictions Each Fund may buy and sell, and enter into agreements to buy and sell Permitted Investments subject to the restrictions described below. These restrictions are considered to be fundamental to the operation and activities of each Fund and may not be changed without the affirmative vote of a majority of the Participants. Each Fund: (a) May not make any investment other than a Permitted Investment; (b) May not purchase any Permitted Investment which has a maturity date more than one • year from the date of purchase, unless it is subject at the time of purchase to an irrevocable agreement on the part of a responsible party to repurchase it from the Fund within one year; (c) May not purchase any Permitted Investment if the effect of such purchase would result in the Fund's portfolio weighted average maturity to exceed ninety days (however, in determining the effect of a purchase on the average portfolio maturity, any Permitted Investment which is subject to an irrevocable agreement of the nature referred to in the preceding clause (b) is deemed to mature on the day on which the Fund is obligated to sell such Permitted Investment back to the responsible party); (d) May not borrow money or incur indebtedness whether or not the proceeds thereof are intended to be used to purchase Permitted Investment, except as a temporary measure to facilitate withdrawal requests which might otherwise require unscheduled disposition of portfolio investments; and (e) May not purchase securities or shares of investment companies or any entities similar to either Fund. • -5- WITHDRAWALS FROM THE PLUS FUND • MI investments in the PLUS Fund must be deposited for a minimum m of 30 calendar days, and a one Minnesota banking day notice period is required for withdrawals from the PLUS Fund. Withdrawals during such 30-day period will be subject to a penalty equal to 15 days interest on the amount withdrawn (calculated using the dividend rates in effect for the 15-day period immediately preceding the withdrawal date). The penalty will be payable even if the amount withdrawn had not been invested in the PLUS Fund for the full 15-day period preceding the withdrawal. In determining whether an amount is eligible for withdrawal from a Participant account without the payment of a penalty, the first-in/first-out method will be used. Withdrawal requests must be received by the Fund's Administrator not less than one Minnesota banking day prior to the requested withdrawal date. The notice requirement will be deemed to have been met if it is received by the Fund's Administrator not later than 11:00 a.m. (Central Time) on the day prior to withdrawal. In the event that a Participant withdraws an investment from the PLUS Fund without giving the required One Minnesota banking day notice, it will be subject to a penalty equal to the loss of 15 days interest on the amount so withdrawn calculated in the same manner as set forth above with respect to the penalty applicable to premature withdrawals. There are no restrictions on withdrawals from the Liquid Asset Fund, which may be effected on a same-day basis. TRUSTEES AND OFFICERS • Subject to the power of the Participants to amend the P Declaration of Trust, the Board of Directors of the League of Minnesota Cities serves as the Board of Trustees of the Trust. Appointments and vacancies are filled in accordance with the by-laws of the League of Minnesota Cities and the Declaration of Trust. The Trustees have full, exclusive, and absolute control and authority over the business and affairs of the Trust and each Fund, in all cases subject to the rights of the Participants as provided in the Declaration of Trust. The Trustees may perform such acts as in their sole judgment and discretion are necessary and proper for conducting the business and affairs of the Trust or promoting the interests of the Trust. The Trustees duties include, but are not limited to, overseeing, reviewing and supervising the activities of all consultants and professional advisers to the Fund (including, but not limited to, the Investment Adviser, the Administrator, the Sub-Administrator, if any, and the Custodian). The Trustees serve without compensation but are reimbursed by the Trust for reasonable travel and other out-of-pocket expenses incurred in connection with their duties as Trustees. The Trustees are not required to devote their entire time to the affairs of the Trust. The officers of the League of Minnesota Cities serve also as officers of the Trust. The executive director of the League of Minnesota Cities serves as the Trust's Secretary and as an ex-officio, non- voting member of the Board of Trustees. The Trustees may elect or appoint such other officers or agents who, subject to the Declaration of Trust and Bylaws of the Trust, shall have such powers, duties and responsibilities as the Trustees may deem to be advisable and appropriate. • -6- The Trustees are responsible for the general investment policy and program of each Fund and for the general supervision and administration of the business and affairs of the Trust. However, the • Trustees are not required personally to conduct all of the business of the Trust and, consistent with their ultimate responsibility, the Trustees have appointed the Administrator and Investment Adviser, a Sub- Administrator, the Custodian, and a Technical Advisory Board. INVESTMENT ADVISER Insight Investment Management("Insight" or the "Investment Adviser"), a division of IPG Asset Management Services, Inc. ("AMS"), has been appointed by the Trustees as each Fund's investment adviser. In such capacity, Insight provides investment advice to, and supervises the investment program of, each Fund. The agreement pursuant to which Insight serves as each Fund's investment adviser will remain in effect with respect to each Fund until September 30, 1997, and thereafter from year to year if approved annually by the Board of Trustees or by a majority of the applicable Fund's Participants. The agreement may be terminated without penalty on sixty days' written notice at the option of the Fund or the Investment Adviser. AMS is a wholly-owned subsidiary of Inter-Regional Financial Group, Inc. ("IFG") of Minneapolis, Minnesota. The Fund does not engage in the trading of investment instruments with or through IFG or any of its subsidiaries (which also include Dain Bosworth Incorporated and Rauscher Pierce Refsnes, Inc.,each a registered full-service broker-dealer). ADMINISTRATOR 1111 The Trustees also have appointed Insight as each Fund's administrator (the "Administrator"). MBIA Municipal Investors Service Corporation, a wholly-owned subsidiary of MBIA Inc. of Armonk, New York, has been appointed by the Administrator to serve as each Fund's Sub-Administrator. The agreements pursuant to which the Administrator and the Sub-Administrator serve each Fund will remain in effect with respect to each Fund until September 30, 1997, and thereafter from year to year if approved annually by the Board of Trustees or by a majority of the applicable Fund's Participants. Each agreement may be terminated without penalty on sixty days written notice at the option of non- terminating party. The Administrator or the Sub-Administrator services all Participant accounts; determines and allocates income of each Fund; provides certain written confirmation of the investment and withdrawal of monies by Participants; determines the net asset value of each Fund on a daily basis; provides administrative personnel and facilities to the Trust and each Fund; bears certain expenses of the Trust and each Fund; and performs other related administrative services for the Trust and each Fund. On a quarterly basis, the Administrator provides the Trustees with a detailed evaluation of the performance of each Fund compared against money market mutual funds and various indices of money market securities. CUSTODIAN First Bank National Association serves as Custodian for each Fund pursuant to a Custodian Agreement with the Trust. The Custodian acts as a safekeeping agent for each Fund's investment • portfolio and serves as the depository in connection with the direct investment and withdrawals of each -7- Fund. The Custodian does not participate in either Fund's investment decision-making process. Each • Fund may invest in obligations of the Custodian, and the Custodian may buy and sell Permitted Investments from and to each Fund. TECHNICAL ADVISORY BOARD The Trustees have appointed a Technical Advisory Board to assist and advise the Board of Trustees in developing policies and overseeing and reviewing the activities of the Trust and each Fund. The Technical Advisory Board consists of individuals skilled in the area of municipal finance and investments. LEGAL COUNSEL Legal counsel of the League of Minnesota Cities serves as General Counsel to the Trust pursuant to the direction of the Board of Trustees. EXPENSES Administrative and Investment Advisory Expenses Under its Administrative and Investment Advisory Agreement with Insight, each Fund has agreed ilto pay Insight a fee at an annual rate equal to 0.26% of the Fund's average daily net assets. This fee is l computed daily and paid monthly. Of the amount so received, Insight has agreed to pay to the League of Minnesota Cities for its sponsorship and administrative services an amount equal to 0.04% of the Fund's average daily net assets. This fee likewise will be calculated daily and paid monthly. The Sub- Administrator is compensated by the Administrator. The Administrator or the Sub-Administrator is responsible for administrative costs of serving as Administrator or Sub-Administrator (as applicable) of the Fund, such as postage, telephone charges and computer time. Additionally, the Administrator is responsible for paying all costs associated with marketing the Fund. Custodial Expenses Under its agreement with the Custodian, the Liquid Asset Fund compensates the Custodian based on the following schedule (calculated daily and paid monthly): Average Daily Net Assets Annual Fee First$50 million .15% Next$50 million .12% Over$100 million .10% In addition, the Liquid Asset Fund pays the Custodian a flat fee of $300 per month for the "'provision of various cash management services. For its fees, in addition to its role as custodian of the Liquid Asset Fund's assets, the Custodian provides check-writing, lock-box and certain other services to Liquid Asset Fund Participants. -8- Under its agreement with the Custodian, the PLUS Fund compensates the Custodian in the annual amount of.03% of the Fund's average daily net assets (calculated daily and paid monthly). The Custodian only provides custodial services for the PLUS Fund and its Participants. Other Expenses In addition, each Fund pays all of its other operating and other expenses not expressly assumed by the Administrator and the Sub-Administrator, including, without limitation, its legal costs, insurance costs and the cost of promotional material including Information Statements, Application Forms, brochures and meeting materials for Participants. DAILY INCOME ALLOCATIONS Each Fund's net income is determined as of the close of business on each Minnesota banking day (and at such other times as the Trustees may determine) and is credited immediately thereafter pro rata to each Participant's account. Such accrued income is reinvested in additional Fund shares at their net asset value (generally, $1.00 per share). Although daily income accruals are not automatically transmitted in cash,Participants may obtain cash by withdrawing shares at their net asset value without charge. Each Fund's net income for each income period consists of (1) all accrued interest income on Fund assets, (2) plus or minus all realized gains or losses on Fund assets and any amortized purchase discount or premium, and(3) less the Fund's accrued expenses applicable to that income period. •Each Fund expects to have net income each day. If for any reason there is a net loss on any day, the applicable Fund will reduce the number of its outstanding shares by having each Participant contribute its pro rata portion of the total number of shares required to be canceled in order to maintain the net asset value per share at a constant value of$1.00. Each Participant will be deemed to have agreed to such a contribution in these circumstances by its adoption of the Declaration of Trust and its investment of monies into the Fund. COMPUTATION OF YIELD The "daily rate" and "annual yield" of each Fund may, from time to time, be quoted in reports, literature and information published by the Trust. The daily rate of each Fund is computed by taking daily investment income, plus or minus any purchased discount or premium less all accrued expenses, including realized capital gains or losses, and dividing by the total shares in the Fund, multiplied by 365. Each Fund will also report an "annual yield" calculated by compounding the daily rate as follows: by adding 1 to the daily rate, raising the sum to the power of 365, and subtracting 1 from the result. Each Fund may also quote a 7-day average yield and a 30-day average yield which is an average of the preceding 7-and 30-day daily annual yields, respectively. Each Fund's yield may vary over time, and, therefore, the yields quoted from time to time should not be considered an indication of future investment results. Actual yields will depend not only on the type, quality, and maturities of the investments held by each Fund and changes in interest rates on such investments, but also on changes in the Fund's expenses during the period. i -9- Yield information may be useful in reviewing the performance of each Fund and for providing a basis for comparison with other investment alternatives. However, each Fund's yield will fluctuate, unlike certificates of deposit or other investments which typically pay a fixed yield for a stated period of time. DETERMINATION OF NET ASSET VALUE The net asset value per share of each Fund for the purpose of calculating the price at which each Fund's shares are issued and redeemed is determined by the Administrator as of the close of business on each Minnesota banking day. Such determination is made by subtracting from the value of the assets of the applicable Fund the amount of the Fund's liabilities and dividing the remainder by the number of outstanding shares of the Fund. The value of each Fund's investments are determined using the amortized cost method. The amortized cost method of valuation involves valuing an investment instrument at its cost at the time of purchase and thereafter assuming a constant amortization to maturity of any discount or premium, regardless of the impact of fluctuating interest rates on the market value of the instrument. While this method provides certainty in valuation, it may result in periods during which value, as determined by amortized cost, is higher or lower than the price the applicable Fund would receive if it sold the instrument. During such periods, the yield to Participants may differ somewhat from that which would be obtained if the applicable Fund used the market value method for all its portfolio investments. For example, if the use of amortized cost resulted in a lower(higher) aggregate portfolio value on a particular day, a prospective Participant would be able to obtain a somewhat higher (lower) yield than would result if the applicable Fund used the market value method, and existing Participants would receive less (more) investment income. The purpose of this method of calculation is to attempt to maintain a constant net asset value per share of$1.00. The Board of Trustees has adopted procedures with respect to each Fund's use of the amortized cost method to value its portfolio. These procedures are designed and intended (taking into account market conditions and each Fund's investment objectives) to stabilize net asset value per share as computed for the purpose of investment and redemption at $1.00 per share. The procedures include a periodic review by the Board of Trustees, in such manner as they deem appropriate and at such intervals as are reasonable in light of current market conditions, of the relationship between net asset value per share based upon the amortized cost value of each Fund's investments and the net asset value per share based upon available indications of market value with respect to such portfolio investments. The Board of Trustees will consider steps, if any, that should be taken in the event of a difference of more than 1/2 of 1% between the two methods of valuation. The Board of Trustees will take such steps as they consider appropriate (such as shortening the average portfolio maturity or realizing gains or losses) to minimize any material dilution or other unfair results which might arise from differences between the two methods of valuation. The Trust has adopted policies on behalf of each Fund to (1) maintain a dollar weighted average portfolio maturity(which will not be more than ninety days) appropriate to the objective of maintaining a stable net asset value of$1.00 per share, and (2) not purchase any instrument with a remaining maturity of more than one year (unless such investment is subject at the time of its purchase to an irrevocable agreement on the part of a responsible person to purchase such investment from the applicable Fund •within one year). Should the disposition of a portfolio investment result in a dollar weighted average -10- portfolio maturity of more than ninety days, available cash will be invested in such a manner as to reduce such average portfolio maturity to ninety days or less as soon as reasonably practicable. • PORTFOLIO TRANSACTIONS Subject to the general supervision of the Board of Trustees, the Investment Adviser is responsible for the investment decisions and the placing of the orders for portfolio transactions for each Fund. Each Fund's portfolio transactions occur primarily with major dealers in money market instruments acting as principals. Such transactions are normally on a net basis which do not involve payment of brokerage commissions. Transactions with dealers normally reflect the spread between bid and asked prices. The Investment Adviser places order for all purchases and sales of portfolio securities. Although neither Fund ordinarily seeks profits from short-term trading, the Investment Adviser may, on behalf of a Fund, dispose of any portfolio investment prior to its maturity if it believes such disposition is advisable. The Investment Adviser seeks to obtain the best net price and most favorable execution of orders for the purchase and sale of portfolio securities. Where price and execution offered by more than one dealer are comparable, the Investment Adviser may, in its discretion, purchase and sell investments through dealers which provide research, statistical and other information to the Investment Adviser or to the Trust. Such supplemental information received from a dealer is in addition to the services required to be performed by the Investment Adviser under its agreement with each Fund, and the expenses of the Investment Adviser will not necessarily be reduced as a result of the receipt of such information. Fund investments will not be purchased from or sold to the Investment Adviser or the Administrator or any • affiliate of the Investment Adviser or the Administrator. REPORTS TO PARTICIPANTS Participants in each Fund receive transaction advise subsequent to all investments and wire withdrawals that they make. Each Participant receives annual reports providing financial information regarding each applicable Fund (including a statement of net income) as well as a monthly statement of the Participant's account. The annual report includes audited financial statements of the Funds. Each Fund's fiscal year ends on December 31 of each year. Potential Participants are advised to review the financial reports of the Funds that are made available to them. The Trust answers inquiries at any time during business hours (8:00 a.m. through 4:00 p.m., Minneapolis time) from a Participant concerning the status of its account (number of shares, etc.) and the current yield available through the Fund's investment program. Such inquiries can be made by telephoning(800) 373-1525. TAXES In the opinion of Counsel to the Trust, neither Fund is subject to federal or Minnesota income tax upon the income realized by it, and the Participants are not subject to tax upon distributions to them of such income. Counsel to the Trust is further of the opinion that the Participants are not subject to taxation as a result of their investment of municipal monies in either Fund. S -11- I DECLARATION OF TRUST Each prospective Participant is given a copy of the Declaration of Trust before becoming a Participant. Certain portions of the Declaration of Trust are summarized in this Information Statement. The following summary is qualified in its entirety by reference to the text of the Declaration of Trust, as amended. Description of Shares. The Declaration of Trust provides that the beneficial interests of Participants in the net assets of each Fund are, for convenience of reference, divided into shares which are used as units to measure the proportionate allocation of beneficial interest among the Participants of such Fund. The Declaration of Trust authorizes an unlimited number of full and fractional shares for each Fund, as well as adjustments in the total number of shares outstanding from time to time in order to permit each Fund to maintain a constant net asset value of$1.00 per share. Shares of each Fund are of the same class. Each Fund share has equal rights with respect to dividends and distributions of such Fund The shares have no preference, conversion, exchange, or preemptive rights. For all matters requiring a vote of Participants, each Participant is entitled to one vote with respect to each matter, without regard to the number of shares held by the Participant. It is not necessary for a Participant to hold any minimum number of shares to be entitled to vote. Separate votes are taken by each Fund except with respect to matters pertaining to the Trust as a whole, in which case Participants vote together, irrespective of the Fund in which such Participant participates. Shares have non- * cumulative voting rights. No shares may be transferred to any person other than the respective Fund's portfolios from which it originated at the time of withdrawal of monies by a Participant. Participant Liability. The Declaration of Trust provides that Participants shall not be subject to any individual liability for the acts or obligations of the Trust and provides that every written undertaking made by the Trust shall contain a provision that such undertaking is not binding upon any of the Participants individually. In the opinion of the Board of Trustees, no individual liability will attach to the Participants under any undertaking containing such a provision. The Trustees intend to conduct the operations of the Trust and each Fund, with advice of counsel, in such a way as to avoid ultimate liability of the Participants for liabilities of the Trust or any Fund. Responsibility of Trustees, Officers and Agents. No Trustee, officer, employee, or agent of the Trust is individually liable to the Trust or any Fund, a Participant, an officer, an employee or an agent of the Trust for any action or failure to act unless it is taken or omitted in bad faith or constitutes willful misfeasance, reckless disregard of duty, or gross negligence. All third parties shall look solely to the property of the applicable Fund for the satisfaction of claims arising in connection with the affairs of the Fund. The Trust will indemnify each Trustee, officer, employee, or agent of the Trust designated by the Trustees to receive such indemnification to the extent permitted by law, against all claims and liabilities to which they may become subject by reason of serving in such capacities for the Trust, except in certain circumstances set forth in the Declaration of Trust. Termination of the Declaration of Trust. Either or both Funds and/or the Trust may be terminated by the affirmative vote of a majority of the Trustees and consented to by a majorityof the -12- Participants entitled to vote. Upon the termination of any Fund or the Trust, and after paying or adequately providing for the payment of all of the Fund's or Trust's (as applicable) liabilities, and upon • receipt of such releases, indemnities and refunding agreements as they deem necessary for their protection, the Trustees may distribute the remaining Fund or Trust property, in cash or in kind, or partly in cash and partly in kind, among the Participants according to their respective proportionate beneficial interests. Amendment of the Declaration of Trust. The Declaration of Trust may be amended by the affirmative vote of a majority of the Participants entitled to vote or by an instrument in writing, signed by a majority of the Trustees and consented to by not less than a majority of the Participants entitled to vote. The Trustees may, from time to time, by a two-thirds vote of the Trustees, and after fifteen days prior written notice to the Participants, amend the Declaration of Trust without the vote or consent of the Participants, to the extent they deem necessary to conform the Declaration of Trust to the requirements of applicable laws or regulations, or any interpretation thereof by a court or other governmental agency, but the Trustees shall not be liable for failing to do so. The name. "The Minnesota Municipal Money Market Fund" is the designation of the Trust under the Declaration of Trust. The Declaration of Trust is filed in the Office of the Secretary of State of Minnesota and provides that the name of the Fund refers to the Participants jointly in such capacity and not personally or as individuals. All persons dealing with a Fund must look solely to the property of such Fund for the enforcement of any claims against the Trust with respect to such Fund, since neither the Trustees, officers, agents, nor Participants assume any personal liability for obligations entered into on behalf of a Fund. FIXED RATE PROGRAM • The League of Minnesota Cities has endorsed Dain Bosworth Incorporated ("Dain Bosworth") as a dealer and provider of various fixed income securities (including Certificates of Deposit and various other fixed rate instruments) and related financial services to the Participants. As a condition to the League's endorsement of Dain Bosworth for this program, Dain Bosworth has agreed that its compensation in connection with any trade shall not exceed 0.25% of the total purchase price of each fixed rate security. Of the amount so received, Dain Bosworth has agreed to pay the League of Minnesota Cities an amount generally equal to 0.03% of the total purchase price of each fixed rate security. Any Participant that also wishes to participate in the Fixed Rate Program should contact Stefanie Adams of Insight Investment Management at (800) 333-0813. Other than the eligibility of Participants to participate in this fixed rate investment program with Dain Bosworth, the fixed rate program is unrelated to the Trust. M1:0193095.01 -13- Item No. 02-5 Staff Report No. q . Meeting Date: October 6, 1997 Type of Business: WK WK: Work Session;PH:Public Hearing; CA:Consent Agenda;CB: Council Business City of Mounds View Staff Report To: Mayor and City Council From: Lynnette Morgan, Item Title/Subject: Discussion Regarding Affirmative Action Plan Date of Report: September 25, 1997 Under the Minnesota Human Rights Act, Section 363.073, any municipality that receives State money is required to prepare and implement an affirmative action plan for the employment of minority persons, women and the disabled. Mounds View's Certificate of Compliances will soon expire. This certificate has allowed Mounds View to contract with the State of Minnesota for goods and services in excess of $50,000 for the past two years. Before another certificate may be issued, an updated affirmative action plan must be submitted to the Department of Human Rights for recertification. The attached plan has been revised and • includes all items which are required for an affirmative action plan. This item will be placed on the October 13, 1997 meeting for City Council consideration. • • AFFIRMATIVE ACTION PLAN CITY OF MOUNDS VIEW November, 1997 • • AFFIRMATIVE ACTION PLAN • TABLE OF CONTENTS A. Project Description 4 B. Equal Employment Opportunity Policy Statement 4 C. Assignment of Responsibility for Affirmative 5 Action Program D. Dissemination of Affirmative Action Policy and Plan 6 1. Internal Dissemination 2. Extternal Dissemination E. Organization Chart 8 F. Workforce Availability and Utilization/Underutilization/8 Analyses 9 1. Workforce Analysis 2. Availbality Analysis G. Goals, Objectives and Timetables for Corrective Action 11 1. Recruitment Sources 2. Applicant Flow Data 3. Training 4. Promotions 5. Merit Increases 6. Discplinary Actions, Demotions and Terminations H. Problem Areas/Deficiency Identification and Analysis 11 Measures to Facilitate Implementation 12 1. Position Description 2. Recruitment 3. City Personnel Policies 4. Selection and Hiring 5. Evaluation of Job Performance 6. Compensation 7. Discplinary Procedures 8. Training 9. Documentation of"Good Faith" Efforts to Reach Affirmative Action Goals 10. Complaint Procedure J. Internal Audit and Reporting System 14 K. Affirmative Action Plan for Disabled Individuals 15 • 1. Disabled Individual Affimative Action Clause 2. Schedule for Review 3. Pre-Employment Medical Exams 4. Accomodations to Physical and Mental Limiations of Employees • 5. Compensation 6. Outreach, Positive Recruitment, and External Dissemination of Policy 7. Internal Dissemination of Policy 8. Responsibility for Implementation 9. Development and Execution of Affirmative Action Programs. • A. PROJECT DESCRIPTION - Relationship of the City of Mounds View to the State of Minnesota The City of Mounds View was incorporated as a Village in 1958 under the provisions of Minnesota State Statutes. In 1979, the residents of Mounds View approved the adoption of a Home Rule Charter and on January 1, 1980 the City became a Home Rule Charter City. As a City in the State of Minnesota, Mounds View acts as an agent of the State in the enforcement of statewide standards and policies as defined in rule and statute. The City is also responsible for complying with and enforcing all rules and regulations promulgated by State agencies which have been made applicable to cities by statute. The City of Mounds View annually receives funds from a variety of State sources including, but not limited to, Local Government Aid, Emergency Management, Police, Training, Municipal State Aid, Police State Aid, and Fire State Aid. Occasionally grant funding is received from Ramsey County, the Metropolitan Council and the State to carry out specific programs authorized by City Charter or State Statute. The City of Mounds View will take Affirmative Action to ensure that all employment practices are free of such discrimination. Such employment practices include, but are not limited to, the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, selection, layoff, disciplinary action, termination, rates of pay or other forms of compensation, • and selection of training including apprenticeship. B. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT The City of Mounds View, to the best of its ability, provides Equal Opportunity to all employees and applicants for employment in accordance with all applicable Equal Employment Opportunities/ Affirmative Action laws, directives and regulations of Federal, State and Local governing bodies or agencies thereof, specifically Minnesota Statutes 363. The City of Mounds View will not discriminate against or harass any employee or applicant for employment because of race, color, creed, religion, national origin, sex, disability, age, marital status, sexual orientation, or status with regard to public assistance. The City of Mounds View will take Affirmative Action to ensure that all employment practices are free of such discrimination. Such employment practices include, but are not limited to, the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, selection, layoff, disciplinary action, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The City of Mounds View will use its best efforts to afford minority and female business enterprises with the maximum practicable opportunity to participate in the performance of subcontracts for construction projects that this City engages in. The City is committed to achieving the goals of the Equal Employment Opportunity and Affirmative Action and fully supports the incorporation of non- 4 A discrimination and Affirmative Action Rules and Regulations. • The City of Mounds View will review their involve in achieving Affirmative Action objections as well as other established criteria. Any employee of the City who does not comply with the Equal Employment Opportunities Policies and Procedures as set forth in the Statement and Plan will be subject to disciplinary action. Any subcontractor to the City not complying with all applicable Equal Opportunity/Affirmative Action laws, directives and regulations of the Federal, State and Local governing bodies or agencies thereof, specifically Minnesota Statutes 363 will be encouraged to come into compliance or risk the loss of future contracts. The City of Mounds View is managed by the City Clerk-Administrator and he/she will designate personnel to complete responsibilities including monitoring all Equal Employment Opportunity activities and reporting the effectiveness of this Affirmative Action Program, as required by Federal, State and Local agencies. If any employee or application for employment believes they have been discriminated against, they should contact the City Clerk-Administrator. If at any time this Plan is found to be in conflict with the City's Affirmative Action Plan, action shall be taken that will allow the goals of the Affirmative Action Plan to be fulfilled. Mayor McCarty Date Charles S. Whiting, City Clerk-Administrator Date C. ASSIGNMENT OF RESPONSIBILITY FOR AFFIRMATIVE ACTION PROGRAM The Mounds View City Council authorizes the City Clerk-Administrator to administer the Affirmative Action Program on behalf of the City. This accountability encompasses the following: 1. Develop the City's Equal Employment Opportunity/Affirmative Action (EEO/AA) Plan/Program consistent with the City's policies. 2. Dissemination of policy information. 3. Conducts and/or coordinates EEO/AA training and orientation of City supervisors and managers to inform them of their responsibilities pursuant to the Affirmative Action Plan/Program. 4. The establishment of contacts in recruitment for minorities, handicapped and women. 5. The preparation of all reports that are required and the design and implementation of audit and recording systems to measure the effectiveness of the Affirmative Action Program. . 5 6. The updating of the City's Affirmative Action Policy in accordance with • changes in State and Federal Law. 7. The interpretation of the Affirmative Action Program to all employees, minority, handicapped, women's organizations. 8. The establishment of affirmative action program. 9. The provision of information to employees or applicants alleging discrimination of their rights under provisions of the Civil Rights Act and 1964 as amended by the Equal Employment Opportunity Act of 1972 and the Minnesota Human Rights Act; of legal options for registering a complaint; and investigation of all such complaints. 10. To receive complaints of alleged acts of discrimination by the City, its agents, employees, or any of its departments. 11. To investigate all such alleged acts of discrimination and to record all material facts. 12. To report to the City Council good faith claims of discrimination. • D. DISSEMINATION OF AFFIRMATIVE ACTION POLICY AND PLAN 1. Internal Dissemination a. A copy of the Affirmative Action Program for the City of Mounds View will be communicated to every department head in the City. b. The City Administrator will instruct, inform and advise all Department Heads of the responsibilities of employees in promoting and achieving the policy of non-discrimination. c. A copy of the Affirmative Action/Equal Employment Opportunity Policy shall be communicated to all employees and become part of the Policy Manual. d. A copy of the Affirmative Action Policy and other related information shall be posted on bulletin boards for employee reference and distributed to all applicants for employment. e. Union representatives will be informed of the Affirmative Action Policy. f. Labor agreements between any union, federation, an authorized employee representative in the City may contain a clause attesting to non-discrimination and equal opportunity as part of the basic for any negotiated settlement. 6 2. External Dissemination • a. The City Clerk-Administrator will file copies of the Affirmative Action Plan with the State Department of Human Rights. b. The City Clerk-Administrator will file copies of the City's Affirmative Action Policy with the State Employment Service and such minority handicapped and women's organizations which benefit from open recruitment. c. The City Finance Director shall distribute a statement of the City's commitment to EEO/AA to all vendors and shall encourage them to follow similar practices. d. The City shall make readily available to minorities, handicapped persons, women and protected class groups the current listing of job opportunities in the City work force. The City will advertise available positions in a manner determined by the City to be most appropriate to reach local minority, handicapped and female persons seeking employment. e. The City shall include the statement "Equal Opportunity Employer" on all City stationary and documents when possible and as current supplies are depleted. S S 7 • .., ..". .m.m. ..m., . .....r TL- i a. _ : ,-- :o .4 .E a - :- : ,8 ',L,' 1 5 : ..3 , .0, -4 c :c 'es ,.h i ,- • 0 E 5 :. m 1 ;E 0 ;.25 3 ' .u, r . O. -,- : a. a -7 m 1-: 7' —. ...___ -.4.. ) :. C....) . e 8 -8 ..: .8 ,--0 O , CC: a• --- = ,--. ,--,-- ,---- 0 -- ---- 2 , 7 • ' . f 15 . -..... a. AR ;8 ••-•• ,c ,5 ,5 •. • 4-.4 ! •c Ls •.2 !.. rg 1.5 a ia i E ,U. N ;a ;E ,E •"...I ,.2 ;o ru i i !0 . a. . :2 -r ;E !c-1 • = e i0 f0 0 t — :0 ;a 0 : •a) '0 i 7"- ; ,.g : !0 - ...___. .... . ••• ..Ammo.._.mimmr: •••,••••••• tO . : . . : . , C ;?. ' .a :C.) i.2 . ' . • I I. ill • C - . ...01zw303; ,,:.!Sa.=aGC.I:s 1!•i:,roOE,,,. :f:'i':;-1g000c3°- iiI•iC;..r:0CtZ3.1 I.'11I _ - :a • 1.... 0 . •177 ;`• :' •a 12 ;0 : ! i 5 ;< :-d r • ;° i c 0.-- I 3 1 e . (I..) ->. • -e ; : ,z ;12 2- 1.g - 0 •:,.9..‘ -. ..... •1 .I ,a ;‹ LI S).,m . . . . . •`L' 2 i Z : :a • _ 8 a i I. i..___ ,a r i i 1 I 1 i — — ;g ;2• ig. :e t 0 • i Y i ; i I f . C4 :Q -; !2 -;a '8 -- . .c ;0 ia ;a; 1 .o ,•ct • (.5 f•- 0 ' •0 7 E m ,r •< !<a 2. 13: !2. i o .c.) ...4 ..i.e. .3 •c cl . r•J g 155 3 - o • .. - a , = . CD .1 -a ..-- — •-- 0 ....,0 . . . . . : -T- -I- ---r- ---r- -7- .7. -r- ,,,,, _ •c.) a . CD . 4 in a 3 •z ,I, — -° ca 0 = O :z O , .,) — •1...4 0 -1- Co) L___ ---, --, .--nmam. :m.....,mr .mmr,d ••• . . . . . . :3 1 3 i 1E1 . i7 Z5 2 !1 !-V. 1 o 2 iv • ;as :... ,as 0 • 2 T.' ! . Ha.8 , : 5 . . •e :•, lc . ,.3 0 •a 0 .(0 .0 •g :0 1% 0 ;0 . co a , _.: :0: - :6 0 :',2 ;4 -7. g -F g i— • — 11 a_ at • c., -7- --r- --r- F. WORKFORCE, AVAILABILITY AND UTILIZATION/UNDERUTILIZATION ANALYSES • The City conducted separate in-depth analyses of each job group for minorities and for women (protected groups). The purpose of these analyses is to determine if minorities and/or women are currently being underutilized in one or more job groups. The results of these analyses then become the basis for establishing the objectives detailed in this document. 1. Workforce Analysis. A workforce analysis is prepared annually if new positions are added to the City's workforce and/or turnover has occurred within the City's workforce. This analysis contains job titles ranked from the lowest paid to the highest paid within each department. For each job title, the total incumbents by race and sex, and total incumbents males, and females, are listed. This profile includes the the salary range for all regular full time and part time positions 2. Availability Analysis. An Availability Analysis has been performed to aid the City in determining whether minorities and/or women are being underutilized in the City's operations. The establishment of job groups is necessary for the performance of an Availability Analysis. The following job groups and positions within the groups are as follows: Managers and Administrators: City Administrator, Finance • Director, Police Chief, Parks, Recreation and Forestry Director, Director of Economic Development , Community Development Director, Public Works Director, Golf Course Superintendent, Public Works Foreman Professional: Planning Associate, Housing Inspector, Accountant, Recreation Programmer, Human Resource Technician, PGA Professional/Clubhouse Manager, Technical: Building Inspector, Engineering Aide, Cable TV Tech, Protective Service: Lieutenant, Sergeant (2), Investigator (2) and Patrol Officer(10), Community Service Officer Laborer. Custodian Office and Clerical: Department Secretary (4), Payroll Clerk, Receptionist, Sr. Clerk Typist Skilled Craft Workers: Public Works Maintenance Workers, Park and Recreation Maintenance Workers, and Mechanic Availability data was developed for minorities and women using the data • 9 1 available in 1990 census as provided by the Minnesota Department of Jobs and Training. Underutilization is determined when there are fewer minorities or women organization-wide than would reasonably be expected based upon availability. The declaration of underutilization of woman or minorities does not imply or admit any form of discrimination. 111 • 10 ► acl: i T' O :: z E < < N ^ �.. O CV lM � LL _ > O Z O CI)c CU 3 Lu0 .0 aa) an. '4-o - u) .. >+ c o M. `- c :.--- Z .0 0 o g a) < < N 2, TiTi = > cu) m CII u) C1 N C U < a) CIS N O Ip E O i- , 1- r- r in E C a L Q >, c oa. di O •cn W Til 76 c O ~ z fu Y op V , r- '- e- r- e- e- CO L f O c N0 ut7O 6 c NO MCO 000 NO r ON CC N. V NIP N Cr) CO (N.! r- e- O CO Cr) 'I' N CO v.. e- CC CMCA 00 CO N- c0 (NI C,DO a, <") Oto COO � lOO LII ( 0 r.... Tr Cr) CO O T. e- f~ r Cr). 0) N COOO Cr)C) O e- - Iii N:CO- CS N NM co" NCM M � to"f•-: ON ptn a) O O co ~ c at c it C N- G O 0 Cu 0 U L o >+ .a `13 CU U E O N L E L Q O L a) c O o 7,5 O Cl) 0 ... U c Cn - W c CV u C r- ^n C ._ a) c CV C , O - .-c • o O a� o a)EE U cB o n. = as I- O o COc -tCCI p O O C7 < O.al eD 0 c a) c a) CII CUj N c �' Cu 0 CC Z 0 Q. Q 0 0 Li U I- 4 F. . o) Cu In 1111N a) ir) a) 2 ■■ u5 , O o ■■11111 c cu m ■■■ o c� 3■ ■■ a) .. a a � rs ,a) =- 2 -a ti O c c - Z U N ° Z ( « M 2 c (,) a gg.i m E L O co < al al a) -E as I-- a) r •,-- E �, LL o a) c >` 0 12 a. tea) 0 >, co c :° Q o 3 I" I- o Ti Z Y O I--- Q `- `'. LO a) as N LO co N v. COOcv 00 M N L' e- (O r, (N ,iO N-• (O 7. col-: _ t6 (N � � NN co � vo � N N- al Cn Nth N M N � co v c Lo(0 O 75 > a) 0 rn C7) '- c L a) C a) L G Q) Q) L O 0 O '_ v` ° a) o a) O U :a > `i) CO a Q a. D C O Q c >, _ 'c • = as as I— Cal a) O O J 7) O CL o a) T:5 f¢ D 0D-� p c o .L 0 = LU CO 0 0 1— p CT. ilk CI a) - z . N Cu < < U) a) a) tr) a) _ o) p Z O -a N- 2 C CO C Cuo LU 0 (1) o — U) . 0 Z U N QQ M = a c13v• im) m 0. Cl) r L. C O 'Q _ a) C V < cB 76 E N F- lI) r O >` C O fl. 3 aa) NE O TC I— M iii c-TiN • Q 0 3 F— 76 om o L I— o o C co 0 N OHO - O) 0) Li Oa) Lai 1� ca ' C O Cu N. F- a) Q) ~ L C CL a) "a • L a) a) E Cu cn cici C L 7.Y O Ti O O73 O O \ cts ti L L c N cII 0 0 a) 0 a) p a) v =E N i U) C J . i r V7 Q a) F- .II U U O_ Y N o 0 0 OF– CC C/) ( LL 1 11, as a) - Z Ti < ( N --' E a) In a)_ 5 o Z oo E. m cn ca §' E = a) o s j as a _ � o N- C C ¢ ¢ U N2 cu 2 I a a, �n Co 0. a) o --Q a) Co < as as o OE C co E m a) o E Q- Ts a) c �, LU �- N N `- r , ,U) Ta 7) Id C o �, Q I-- _ C OTs o e- O N N 0 0 N 4- O Y O a) O i L C ' O CO O N a0 ' 0 ' �. co NI- O N co• O CO• co N N CO 0 co• Op N O M O O O N r' M ems- 01 O CO co OM CI CON M C0 � COO COON T. N O CII -CVCO U)CI_) CO "q' CO e. Cf; N. �' T' N N CT) N Q' N 'Zr a In InCO CO ' C) 0 a) C- C C) .r E Tr o _a 0 L. m asC) O U o 'O .. 0. a) cn CAY (1) `' _ _a L o 0 O 0 j C a) a) E O .a. C Q) fB cn • 1a, i= E O CII O c N U J EQ p ET. 4, m - Z N— Tli < < E a) a) a) LL = Cl, (:) : o C 1- M E m o as a) W > a a1 o — U) 73 C o _ v N g .2). ¢¢ 2 2 a C � m C .1..) o 0 <a ) co al o U) I— aa) a) a) >, 0 a 60 UI H 2 CO e • 0 I— �a or- r' ao e- e- N I— O L (1) al co N N0 � O v. L a) c to &' ,CC tiN ,-: g r0 c' 66 N N N N mm �- ' nM ti � 000- �. CO co- , ,i 1 LOM Mco fn N m N m N M Cr) v LU C0 tia) 0 o) O o a- C O i Cu a) O O 0 — :. E U o 0 O O N 7 2 LL, 6 O U 0 U) N U) C T. C >Y 0 Y EO Ocll us > J a) II= as a) = U U U Q Q. a) . 0 I- 0 0 CI 2 0_ CL 0.. I- 0 aEt a) - Z < < N 47's E r e— a) a) In u' _ cn p Z o 1.3 2 a m C Ccu 3 W 0 .cu > a as o — u' L r o V O o O < < N M al = >. Cu u m o_ o C L o -0 a) Co < to to O o E E to ~ a) L a) o >. c 0 — a. �a o 1110 .en CD E a ca W N To' Ts C o Q I— o3Tri = I— N L 0 L a) m c) v N IA (0 —cu a, to t) 0 = = to6 tt0 a) t- T- Lc) to T COal 03 N co- M N- o) o) a) o) C) co - ++ a) c toL Cu Cl) a Q 2 C O C V a) N C C Q co O a) C7 co I = a C w v U ccnn (1) • E 0 a 0 Q QI- 0 75 0 Cl) 0 3 0 I— G. GOALS, OBJECTIVES AND TIMETABLES FOR CORRECTIVE ACTION • The City's Availability/Utilization/Underutilization Analysis shows that for the total workforce, there is an underutilization of 2 women and 4 minorities. The City will need to maintain an awareness of the need for full utilization of women and minorities particularly when filling vacancies in existing and new positions. An underutilization of 2 women and 4 minorities was identified in the total workforce. Taking into consideration expansion and contraction in the size of the workforce and employee turnover, the City will make a good faith effort to hire qualified women and minorities. It is the desire of the City to eliminate underutilization of women and minorities through the normal attraction of employees or the addition of new positions by the following items listed below. The specific timetables for the elimination of underutilization would be 1 female and 2 minorities in 1998, and 1 female and 2 minorities in 1999. 1 Recruitment Sources. Data shall be maintained regarding recruitment and media sources notified of City job vacancies 2. Applicant Flow Data. Data shall be maintained for regular full time and part time positions that indicates the total number of applicants interviewed for each job vacancy, those offered positions, and those hired, in order to determine the effectiveness of the City's recruitment process and to assess the City's progress toward equal employment opportunity. 3. Training. Data shall be maintained indicating the number of City employees participating in all City-sponsored training programs. 4. Promotions. Data shall be maintained regarding promotions and those employees who are promoted. 5. Merit Increases. Data shall be maintained to assure that not disparity exists regarding merit increases between City employees belonging to protected classes and other City employees. 6. Disciplinary Actions, Demotions and Terminations. Data shall be maintained on all disciplinary actions, demotions and terminations including reasons for such actions. H. PROBLEM AREAS/DEFICIENCY IDENTIFICATION AND ANALYSIS An evaluation of the City's programs for hiring and retaining employees reveals that the selection process is continuing to make a good faith effort to attract qualified minorities and women. The City will need to undertake efforts in advertising vacancies and recruiting in a manner that will further encourage qualified minorities and women applicants. The City's total workforce composition there in an underutilization of eight females and four minorities. Some problems were identified in the applicant flow composition. In order to correct this, • whenever possible the City will advertise in women and minority newspapers to increase the applicant pool. No problems were identified in the transfer and promotion practices, company facilities and 11 1 company sponsored activities, seniority practices, company training programs and workforce attitude. In the technical phases area, contract compliance posters are displayed, employment applications are kept for at least one (1) year and all subcontractors and vendors are made aware of our Affirmative Action Policy by the "Equal Opportunity Employer' message on our letterhead. 1. MEASURES TO FACILITATE IMPLEMENTATION To assure progress towards achievement of Affirmative Action goals and to guarantee equal employment opportunity to all persons, the City of Mounds View shall pursue the following actions. The City of Mounds View's personnel practices shall adhere to the principle of Equal Employment Opportunity. The principles of Equal Employment Opportunity shall be introduced into all City written personnel policies and shall be reflected in all negotiations between the City and labor unions who represent authorized bargaining units of City employees. 1. Position Description. A written position description shall exist for all regular full- time and part-time positions within the City. These descriptions shall include a position title, general description of the work, and shall be available to all employees and prospective job applicants for review prior to application. • Position titles and minimum qualifications shall be used in all recruitment advertising. 2. Recruitment. The City of Mounds View will advertise job openings in the appropriate media for its labor market. All job advertisements shall state the title of the position, minimum qualifications, where applications can be obtained and other relevant information submitted the last day of filing. All job advertisements shall include the statement"An Equal Opportunity Employer". In special circumstances the City may add or substitute the wording "Minorities and Women are Encouraged to Apply". Announcements of job openings shall be regularly sent to organizations within the labor market who specifically represent women minorities, and the handicapped. 3. City Personnel Policies. The Administration/Finance Department shall provide for the revision and ongoing maintenance of the Policy Manual to be consistent with the Affirmative Action Program. Each department shall be appraised of Affirmative Action goals and briefed regarding the City's commitment to achieving those goals. • The employment application form currently utilized is intended to eliminate 12 r artificial employment barriers by not requiring irrelevant information as a part of the selection process. • It shall be inconsistent with the Affirmative Action Program for any hiring authority of the City to consider race, color, creed, religion, natural origin, sex, age, marital status, public assistance status, handicap, sexual affiliation or disability as a basis for rejecting any individual applicant for employment. 4. Selection and Hiring. The City shall make a "good faith" effort to meet its Affirmative Action goals by giving maximum consideration to those protected class candidates who possess minimum qualifications for City positions. 5. Evaluation of Job Performance. Probationary periods for entry and promotional positions shall be uniformly applied and no protected class employee shall be subject to a probationary period different in length from any other employee. All performance evaluation systems used shall be directly related to actual performance on the job. 6. Compensation. All compensation schedules for City employees shall adhere to State and Federal laws and shall not discriminate upon the basis of race, sex, color, religion, national origin, handicap, disability, age, marital status, veteran status, sexual orientation or status with regard to public assistance. All fringe benefit schedules shall be equal for members of both sexes and shall • not discriminate against any employed member of a protected class. 7. Disciplinary Procedures. All disciplinary procedures within the City organization shall be applied equally and shall not discriminate against any employee upon the basis of race, sex, color, creed, national origin, handicap, disability, age, marital status, veteran status, political affiliation, sexual orientation or status with regard to public assistance. 8. Training. All training programs shall be extended to all employees, if the program is job related and would result in better job performance. No employee shall be restricted from attending such programs or courses because of race, color, sex, creed, marital status, religion, natural origin, age, physical disability, adherence to any political or union affiliation, sexual orientation, or status with regard to public assistance. Special efforts shall be made to include and encourage employees in protected classes to attend such programs and courses. 9. Documentation of"Good Faith" Efforts to Reach Affirmative Action Goals. The City Clerk-Administrator shall keep a written record of the efforts undertaken to meet City goals for employment of protective class employees. •10. Complaint Procedure a. City Responsibility. The City has the responsibility to receive, investigate and attempt to resolve internal and external charges of alleged violations of its obligations to meet Affirmative Action 13 1 goals. Appropriate action will be taken to ensure that the right of • individuals to file complaints or participate in investigations, hearings or any other procedure for resolving such complaints will be respected and not interfered with any manner. Should the final decision be adverse to the complainants, they will be advised that they may pursue that matter further with the Minnesota Department of Human Rights or the Department of Labor. Complaints and all actions taken to resolve them through the City must be maintained in the strictest confidence. No individual should be intimidated, threatened, coerced or discriminated against by the City of filing a complaint, furnishing information, or participating in any manner in investigations, compliance reviews, hearings, or any other activities related to the administration of the Affirmative Action Plan or Equal Employment Opportunity. b. Applicant's Rights to File Complaints of Alleged Discrimination. Applicants who believe the City has violated its obligations may file written complaints with the City, the Minnesota Department of Human Rights or the Department of Labor. c. Employee's Rights to File Complaints of Alleged Discrimination. Employees who feel the City has violated its obligations may file written complaints with the City, the Minnesota Department of Human Rights or the Department of Labor. Employees may bring their concerns to the attention of their immediate supervisor of file a written complaint directly with the City Clerk-Administrator. J. INTERNAL AUDIT AND REPORTING SYSTEM In order to successfully evaluate the implementation of the City's Affirmative Action Program, the following data shall be maintained by the City. 1. Reports shall be required from Department Managers on a regular basis regarding recruitment sources, applicant flow data, training, promotions, merit increases, and disciplinary actions, demotions and terminations. 2. Documentation of Good Faith Efforts to Meet Goal. Semiannual reports will be forwarded as requested to the Minnesota Department of Human Rights documenting the City's efforts to meet the establishment goals for employment of protected class employees. 3. Termination will be broken down by sex, minority, disability and whether it • 14 R was voluntary or involuntary. • 4. The City Clerk-Administrator is responsible for collecting and maintaining data for the Affirmative Action Plan. K. AFFIRMATIVE ACTION PLAN FOR DISABLED INDIVIDUALS 1. Disabled Individual Affirmative Action Clause. The City of Mounds View shall not discriminate against any employee or applicant for employment because of physical or mental disability in regard to any position for which the employee or applicant for employment is qualified. The City of Mounds View agrees to take affirmative action to employ, advance in employment, and otherwise treat qualified disabled individuals without discrimination based upon their physical or mental disability in all employment practices such as the following: employment, promotion, demotion or transfer, recruitment, advertising, layoff or termination, rates of pay or other forms of compensation and training. The City of Mounds View agrees to comply with the rules and relevant orders of the Minnesota Department of Human Rights issued pursuant to the Minnesota Human Rights Act. The City of Mounds View agrees to post in conspicuous places, available to employees and applicants for employment, notices in a form to be prescribed by the Commissioner of the Minnesota Department of Human Rights. Such notices shall state the City of Mounds View's obligation under the law to take affirmative action • to employ and advance in employment qualified disabled employees and applicants for employment, and the rights of applicants and employees. The City of Mounds View shall notify each labor union or representative of workers with which it has a collective bargaining agreement or other contract understanding, that the City is bound by the terms of the Minnesota Human Rights Act and is committed to take affirmative action to employ and advance in employment physically and mentally challenged individuals. 2. Schedule for Review. The City of Mounds View will review all physical and mental job requirements to the extent that these requirements tend to screen out qualified disabled individuals. It will be determined whether these requirements are job related, and consistent with business necessity and the safe performance of the job. These requirements will be reviewed when the position becomes open. 3. Pre-Employment Medical Exams. The City of Mounds View may require a comprehensive medical exam after a conditional offer has been made to employment. The results of such an examination will not be used to screen out qualified disabled individuals. Information obtained in response to such inquires or examination shall be kept confidential except that (a) supervisors and managers may be informed regarding 15 restriction on the work or duties of disabled individuals and regarding accommodations, (b) first aid and safety personnel may be informed, where and to the extend appropriate, if the condition might require emergency treatment, and (c) officials, employees, representatives, or agents of the Minnesota Department of Human Rights or local human rights agencies investigating compliance with the act or local human rights ordinances shall be informed if they request such information. 4. Accommodations to Physical and Mental Limitations of Employees. The City of Mounds View shall make a reasonable accommodation to the physical and mental limitations of an employee or applicant unless such an accommodation would impose and undue hardship on the conduct of City business. 5. Compensation. If offering employment or promotions to disabled individuals, the City of Mounds View shall not reduce the amount of compensation offered because of any disability income, pension, or other benefit the applicant of employee receives from another source. 6. Outreach, Positive Recruitment, and External Dissemination of Policy. The City of Mounds View will review employment practices to determine whether the personnel programs provide the required affirmative action for employment and advancement of qualified disabled individuals. Based upon the findings of such review, the City of Mounds View shall undertake appropriate outreach and positive recruitment activities, such as those listed below: a. Develop internal communication of the City's obligation to engage in affirmative action efforts to employ qualified disabled individuals in such a manner as to foster understanding, acceptance, and support among executive, management, supervisory, and all other employees and to encourage such persons to take the necessary action to aid the City of Mounds View in meeting this obligation. b. Develop reasonable intemal procedures to ensure that the obligation to engage in affirmative action to employ and promote qualified disable individuals in being fully implemented. The City shall make readily available to disable individuals the current listing of job opportunities in the City offices. The City will advertise available positions in a manner determined by the City to be most appropriate to reach local disable individuals. c. Periodically inform all employees and prospective employees of the commitment to engage in affirmative • action to increase employment opportunities for qualified 16 b disabled individuals. • d. Enlist the assistance and support of recruiting sources (including state employment security agencies, state vocational rehabilitation agencies or facilities, sheltered workshops, college placement officers, state education agencies, labor organizations and organizations of or for disabled individuals) of the City of Mounds View commitment to provide meaningful employment opportunities to qualified disabled individuals. e. Established meaningful contacts with appropriate social service agencies, organizations of and for disabled individuals, vocational rehabilitation agencies or facilities, for such purposes as advise, technical assistance, and referral to potential employees. f. Review employment records to determine the availability of promotable and transferable qualified known disabled individuals presently employed, and to determine whether their present and potential skills are being fully utilized or developed. g. Include disabled workers when employees are pictured in consumer, promotional, or help in wanted advertising. h. Take positive steps to attract qualified disabled persons not currently in the workforce who have requisite skills and can be recruited through affirmative action measures. 7. Internal Dissemination of Policy. Realizing that an outreach program is ineffective without adequate internal support from department heads and supervisory personnel and other employees, who may have had limited contact with disabled persons in the past, and in order to assure greater employee cooperation and participation the City of Mounds View shall disseminate this policy internally as follows: a. Include Plan in Policy Manual. b. Departments shall discuss with new employees the policy and explain indivdival employee responsibilities. c. Meet with union officials to inform them of the Policy and request their cooperation. d. Include non-discrimination clauses in all union agreements, and review all contractural provisions to ensure they are non-discriminatory. 17 $ e. Post the Policy Statement on the bulletin board, including a statement that employees and applicant's are protected from coercion, intimidation, interference, or discrimination for filing a complaint or assisting in an investigation under the Minnesota Human Rights Act. 8. Responsibility for Implementation. The City Clerk-Administrator is responsible for Mounds View's affirmative action activities and will include the following activities: a. Develop policy statements, affirmative action programs and internal and external communiciation techniques to be certain the City of Mound View's policies are being followed. In addition, supervisors shall be advised that: 1. Their work performance is being evaluated on the basis of their affirmative action efforts and results, as well as other criteria; and 2. The City of Mounds View is obligated to prevent harassment of employees placed through affirmative action efforts. 3. Identify problem areas in conjunction with Department Heads and know disabled employees, in the implementation of affirmative action plan and develop soluations. b. Design and implement an audit and reporting system that will: 1. Measure effectiveness of the City's plan; 2. Indicate need for remedial action; 3. Determine the degree to which objectives have been attained; 4. Ensure that each department is in compliance with the Minnesota Department of Human Rights Act. c. Serve as liaison between the City of Mounds View and the Minnesota Department of Human Rights. d. Serve as liaison between the City of Mounds View and organizations of and for disabled persons. e. Keep Department Heads informed of the latest development in the entire affirmative action area. 9 Development and Execution of Affirmative Action Programs. The Affirmative Action Plan for the City of Mounds View shall be developed and executed as follows: a. Job qualification requirements shall be made available to all employees involved in the recruitment, screening, selection, and promotion process. b. The City of Mounds View shall evaluate the total selection • 18 1 process including training and promotion to ensure freedom from stereotyping disabled persons in a manner • which limits their access to all jobs for which they are qualified. c. All personnel involved in the recruitment, screening, selection, promotion, disciplinary, and related processes shall be carefully selected and trained to ensure that the commitments in its affirmative action program are implemented. 1111 S 19 APPENDIX I RECRUITMENT RESOURCES Working Opportunities for Women 2700 University Avenue Suite 120 Minneapolis, MN 55114 Minnesota Department of Economic Secuirity Job Bank 390 North Robert St. Paul, MN 55101 . Anoka County Job Service 8008 Highway 65 NE Spring Lake Park, MN 55432 Minnesota Workforce Center 2098 11th Avenue E. North St. Paul, MN 55109-5112 • 20 Evaluation of CIerk/Administrator Explanations and Directions Performance Evaluation as Team Building Evaluation as Team Building If evaluation is to be, in the truest sense, a means of team building, certain conditions must prevail. The two processes must be compatible and interrelated in the following ways: 1. Evaluation is basically a means, not an end in itself. 2. The trust level between the evaluatee and evaluators must be high. 3. The roles each are to fulfill must be clearly indicated and accepted. 4. Responsibilities are matched with pre-determined standards of performance. Definition of Roles A. Policy Board • 1. Conduct annual assessments of performance of the Clerk/Administrator. 2. Respect the prerogatives of the Clerk/Administrator insofar as operational management function of of the organization is concerned and the policy function of the Council. 3. Make assessments in general terms except in instances where specific improvements are needed or when explicit commendations are due. B. Clerk/Administrator 1. Accepts the prospects of annual evaluations. 2. Understands the scope and thrust of the evaluations. 3. Expects the evaluations to adhere to the established procedures for evaluating the performance of the Clerk/Administrator. Pre-Determined Performance Standards A performance standard is defined as the condition that will exist when a responsibility of function is successfully performed. It is essential that a performance standard be established, at the outset, for each of the eight major areas of responsibility of the CIerk/Administrator. This is necessary in order to use the rating scale effectively. Major Areas of Responsibility It should be reiterated that in determining the appropriate Ievel of expectations, actual performance must be measured in relation to the indicated standard of performance. Eight major areas of responsibility are identified as the basis upon which assessments are to be made. Descriptions are provided under each to clarify the meaning and content of the area. However, the evaluation is made of the major area. Rating Symbols Three rating symbols are used to make the assessments as follows: E = Exceeds Expectations (Performance has been above reasonable expectations.) M = Meets Expectations (Performance has attained a level of reasonable expectations.) B = Below Expectations (Performance has been below reasonable expectations.) As indicated earlier, without more precise definition of the term "expectations", it is possible that ambiguity will result in the use of the term. In order to help avoid this possibility, the concept of performance standards is used. It will be noted that in connection with each major area, a performance standard is stated, including the conditions that have to be met in order to decide the extent to which "expectations" have been met. • S APPRAISAL OF PERFORMANCE • Position: Date: • S Eight Major Areas of Responsibility I. Organizational Management II. FiscaUBusiness Management III. Program Development and Follow-Through IV. Relationship with the Council V. Long-Range Planning . VI. Relationship with Public and Private Sector Organizations VII. Interagency Relations VIII. Professional/Personal Development • Rating Responsibility Performance Standard E I. Organizational Management Organizational Management M will be considered effective a majority of the conditions have B been successfully fulfilled: Plans and organizes the work a. Well qualified, promising persons that goes into providing services are recruited and employed. established by past and current b. Employees are appropriately decisions of the Council. placed, contributing to a high retention rate. Plans and organizes work that c. Supervisory techniques carries out policies adopted motivate high performance. by the Council and developed d. Complaints to the Council are by staff. not common. e. The organization is aware Evaluation and keeping up with of new trends in technology. technology. Selecting, leading, directing and developing staff members. Comments: Observations of Evaluators: (Use this space also to indicate the impact upon the teamwork factor) • Suasestions for Improvement: (Specific area(s) that need strengthening) Commendations: (Area(s) of performance calling for praise/commendation) Comments from the Administrator. • Rating Responsibility Performance Standard E IL Fiscal/Business Management Fiscal/Business Management will be considered effective M when a majority of the B conditions have been success- fully fulfilled: Plans and organizes the prep- a. Budget preparation and ation of an annual budget with management are thorough and documentation, etc. that effective. conforms to guidelines adopted b. Cost-effective measures are by the Council. persistently pursued. c. Financial reporting is timely Plans, organizes and supervises and readily understandable. most economic utilization of man d. Physical facilities management power/materials/machinery, is efficient. e. An adequate data base is established Plans and organizes a system of and maintained. reports for the Council that provide most up-to-date data available concerning expenditures and revenue. Plans and organizes maintenance of facilities/buildings/equipment. 41komments: Observations of Evaluators: (use this space also to indicate the impact upon the teamwork factor) • SuQoestions for improvement: (Specific area(s) that need strengthening) Commendations: (Area(s) of performance calling for praise/commendation) • Comments from the Administrator. I Rating Responsibility Performance Standard 4 E III. Program Development Program planning techniques and procedures will be M considered effective when a majority of the conditions have B been successfully fulfilled: Plans and organizes on-going a. Ongoing programs and services programs and services to the are fully responsive to the organization. organization's needs. b. Monitoring procedures are in Plans and organizes work involved place and functioning well. in researching program c. Measurable outcomes (to the suggestions by Council and extent possible) are used to. Staff and the reporting determine success in program of the results of analysis. planning. d. The Clerk/Administrator can be depended upon Maintains knowledge of current to follow through. and innovative trends in the e. Makes most effective use of available area of services being provided Staff talent. and incorporates that knowledge in program suggestions and research. Plans and organizes work assigned by the Council so that it is completed with dispatch and efficiency. Plans, organizes and supervises implementation of programs adopted or approved by the Council. Comments: Observations of Evaluators: (use this space also to indicate the impact upon the teamwork factor) Suggestions for Imvrovement: (Specific area(s) that need strengthening) Commendations: (Area(s) of performance calling for praise/commendation) Comments from the Administrator: I Rating: Responsibility Performance Standard E IV. Relationship with Council Relations with the Council will be 40 considered effective when a majority of the M conditions have been fulfilled a. Materials, reports, presentations and B recommendations are clearly•and convincingly made. Maintain' effective communi- b. Communications are made in a timely, cations, both verbal and forthright, and open manner. written, with the Council. c. Responses to requests are made promptly and completely. Maintains availability to the d. Recommendations appear to be thoroughly Council either personally or researched. through designated subordinates. e. Adequate information is provided to the Council to make decisions. Plans and organizes materials f. A system is in place to report to the for presentations to the Council, Council current plans, activities, and events. either verbally or written, in the most concise. clear and comprehensive manner possible. Comments: Observations of Evaluators: (use this space also to indicate the impact upon the teamwork factor) S Sugzestions for Improvement: (Specific area(s) that need strengthening) • Commendations: (Area(s) of performance calling for praise/commendation) Comments from the Administrator: Rating Responsibility Performance Standard • E V. Long Range Planning Strategic planning will be considered effective when a majority of the conditions have been successfully fulfilled: }3 a. A well constructed long-range (strategic) plan is currently in operation. b. Annual operational plans are carried out Maintains a knowledge of new technologies c. An on-going monitoring process is in systems, methods, etc. in relation to operation to attain quality assurance services offered. in program and project implementation. d. Program evaluation and personnel Keeps the Council advised of new and evaluation are inter-related with the impending legislation and developments strategic planning process. in the area of public policy. e. A marketing strategy is developed and monitored. Plans and organizes a process of program Planning in anticipation of future needs and problems. Establishes and maintains an awareness of developments occurring within other testing centers or other jurisdictions that may have an impact on City activities. • Plans, organizes and maintains a process for establishing goals to be approved or adopted by the Council and monitoring and status reporting. Comments: Observations of Evaluators: (use this space also to indicate the impact upon the teamwork factor) Sue?estions for Improvement: (Specific area(s) that need strengthening) • Commendations: (Area(s) of performance calling for praise/commendation) Comments from the Administrator. • Rating Responsibility Performance Standard E VI. Relationship with Public/ Communication services will be considered Public Relations effective when a majority of the conditions M have been successfully fulfilled. l3 a. Contacts with the media are timely and credible. b. Publications are varied and consistently well-received by the citizens. Plans, organizes and maintains training of employees in contact with the public, either c. Feedback from the public and the by phone or in person. community leadership is positive. Establishes and maintains an image to the community that represents service, vitality and professionalism. d The City has a good image with comparable organizations. Establishes and maintains a liaison with private non-governmental agencies, organizations and groups involved in areas of concern that relate to services or activities of the City. Comments: Observations of Evaluators: (use this space also to indicate the impact upon the teamwork factor) • Susg.estions for Improvement: (Specific area(s) that need strengthening) Commendations: (Area(s) of performance calling for praise/commendation) Comments from the Administrator. Ratios Responsibility Performance Standard • • E VII. Interagency Relations Intergovernmental relations will be considered effective when a majority of the conditions have been successfully B fulfilled: Maintains awareness of developments and a. Sufficient activity with professional plans in other jurisdictions that may relate organizations. to or affect the City. b. Regarded as leader by agency officials. Establishes and maintains a liaison with c. Provides examples of good ideas from other agencies in those areas of service other jurisdictions. that improve or enhance the City's programs. d. Positive relationship with other agencies. Maintains communications with govern- e. Good cooperation with cities, mental jurisdictions with which the City counties, and state agencies. is involved or interfaces. f. Good relationship with universities and colleges. Comments: Observations of Evaluators: (use this space also to indicate the impact upon the teamwork factor) • Suggestions for Improvement: (Specific area(s) that need stt ugthening) Commendations: (Area(s) of performance calling for praise/commendation) • Comments from the Administrator. 4110 Rating Responsibility Performance Standard • E VIII. Professional/Personal Professional and personal Development competencies will be considered M effective when a majority of the conditions have been successfully B fulfilled. Maintains awareness and value of a. Management techniques show evidences broadening professional and personal of innovation, imagination and decisiveness. development. b. Synergetic techniques are fostered. c. Verbal communication is commendable. Demonstrates imaginative leadership initiatives. Ability to build cohesiveness in Staff. Decisiveness in leadership performance. Effectiveness in verbal communications. Comments: Observations of Evaluators: (use this space also to indicate the impact upon the teamwork factor) • Suegestions for Improvement: (Specific area(s) that need strengthening) Commendations: (Area(s) of performance calling for praise/commendation) Comments from the Administrator. • q7- ??"39C r-:-.,--ii SC) 1 FO• / Jfj / 929 Fifth Avenue NW Ste. 500 New Brighton, MN 55112 YOUTH Vdice mail: 486-2881 ext. 201 Dear Community Leader: On behalf of all of the children of our community surrounding and including the MoundsView School District, we want to invite you to a"Community Summit Conference": The purpose of the Conference is to learn more about the assets and risk factors present in our community and in our children's lives, and to design ways that we can work together to strengthen their social and personal lives. The Summit is sponsored by the Coalition for Health Youth, a group of concerned citizens joining together to encourage community action to support our youth. The Conference will be held at the New Brighton Family Service Center beginning at 7pm on Tuesday, September 30. We will start with a presentation by Michael Johnson, from the Search Institute. He will explain the methodology designed by the Institute to assess the status of our children's experience with the 40 "assets" identified as being critical to their future well being. Jan Witthuhn, ISD No.621 Superintendent, will review the results of a survey of our children conducted in the spring of 1995. Some of you may have heard about the survey results, but we find that many have not or may need a refresher. Pastor Tim Thompson, Chair of the Coalition For Healthy Youth, will describe the status of the efforts to develop a coordinated response. He will also announce the start of the"ASSET OF THE MONTH"program. We will then discuss the need for YOU to become an active participant in our efforts. OWe know that you and the organizations that you represent share our sense of responsibility to our children and our communities. We believe that, working together, we can make a major difference in the quality of life experienced by our future leaders.We need you to make that effort a significant success! Please join us! We welcome your affirmative response to this letter by calling 638-2040 to let us know you are coming. Please call Pastor Tim Thompson or one us if you have any questions, if you want to participate but cannot attend, or if you can contribute to the planning for the meeting. THANK YOU! Sincerely, - / . ... ,275i4AZ Bob Benke,Mayor 0'n i ' •bs iv ayor Sandy Martin, Mayor City of New Brighton City of Arden Hills City of Shoreview' # ..../ / lir, i 7/4 / / c...7) Z/Alr „.- , , _., l Duane McCarty, Mayor �`� �' �'�""`�S 1)-� y / Se r olton, . ayor Dave Stimpson, Chair City of Mounds View Ci , •fNo Oaks Mounds View School Board ciAMAL -6ditttrtLthr /Jai bla/ Susan Banovetz, Mayor DT Wall, ayor City of Vadnais Heights City of Roseville • - cc: State Legislators, County Commissioner Bennett and Weissner, Media Civic, Religious and Service organizations in the above Cities. Scouts, YMCA, Sports Associations, PTAs, Student organizations,NWYFS, Law enforcement agencies, I T 0 Cr fs U • Fo•/ / 929 Fifth Avenue NW Ste. 500 New Brighton,MN 55112 YOUTH Voice mail: 486-2881 ext. 201 Dear Community Leader: I hope you will be able to join us at the COMMUNITY SUMMIT FOR HEALTHY YOUTH on September 30th at the New Brighton Family Service Center. As the Chair of the Coalition for Healthy Youth,I believe this will be a wonderful opportunity for you to learn more about our efforts in supporting the youth from all communities in Mounds View School District 621. From every vantage point...as parents, employers, friends, or community leaders,I am sure you agree that it is important for all of us to work together, as we support our youth and give them the tools they need to be successful. At the upcoming Community Summit for Healthy Youth, we will be introducing a public education campaign promoting a youth development asset for each month during 1998. These"assets"will be discussed at the Summit,but are identified on the reverse side of this paper for your review. The Search Institute has demonstrated the enormous impact these assets have in the lives of our young people. We would ask you to join us in committing to keep the"Asset a Month"campaign active within your organization during 1998. Your commitment would simply be to incorporate the monthly asset in any forum you feel is appropriate in your • organization. For example,you might include asset information in your employee newsletters,provide presentations, or have discussions on the topic. The actions you specifically take will be up to you. By indicating your commitment on the attached sheet,you will be indicating to other community leaders that you.- take this issue very seriously and are willing to help keep the topic of Healthy Youth active in your organization throughout 1998. We would like to publicly acknowledge your commitment to Healthy Youth at the Community Surjit. If you would sign and return the attached sheet to me at the address shown below by Monday, September 27th, we will make sure that your commitment is formally recognized. If you need additional information or would like someone to discuss this matter with your organization, please leave your name and phone number on our voice mail, and I will be delighted to return your call. We are very appreciative of your willingness to commit to strengthening our community through efforts directed at strengthening opportunities for our youth to be successful. We look forward to an exciting Community Summit and Asset a Month public campaign. Sincerely, • Pastor Tim Thompson Pastor Tun Thompson,Chair-Healthy Youth Coalition 929 Fifth Avenue NW Ste S00 New Brighton,MN 55112 A JNV lE.2.DOC Phone 631-3386 4 1 %Ay 1(: , • 1998 COMMITMENT TO HEALTHY YOUTH FO' // YOUTH STATEMENT OF COMMITMENT The purpose of this document is to formally indicate our support and commitment toward building Healthy Youth assets in our community. We pledge to keep this topic as a major focus within our organization throughout 1998. Through this commitment to our youth and community, our organization will participate in the "Asset of the Month"educational campaign being sponsored by the Coalition for Healthy Youth. We will follow and utilize the monthly assets in appropriate ways to educate and share information with our employees and colleagues. By making this commitment, we are acknowledging that the development of healthy youth in our families is vitally important for ensuring the current and future quality of life in our community. NAME OF BUSINESS ORGANIZATION SIGNATURE OF REPRESENTATIVE (Please Print Name) POSITION IN BUSINESS ORGANIZATION (Date) 111 A:\COMMIT-2.DOC 1998 COMMITMENT TO HEALTHY YOUTH 11110 STATEMENT OF COMMITMENT The purpose of this document is to formally indicate our support and commitment toward building Healthy Youth assets in our community. We pledge to keep this topic as a major focus within our organization throughout 1998. Through this commitment to our youth and community, our organization will participate in the"Asset of the Month" educational campaign being sponsored by the Healthy Youth Coalition. We will follow and utilize the monthly assets in appropriate ways to educate and share information with our employees and colleagues. By making this commitment, we are acknowledging that the development of healthy youth in our families is vitally important for ensuring the current and future quality of life in our community. • NAME OF BUSINESS ORGANIZATION SIGNATURE OF REPRESENTATIVE (Please Print Name) POSITION IN BUSINESS ORGANIZATION (Date) GACORRESPV.4\Y0UTH1SUM IIT_H,INV Geri Evans Minnesota State Representative • House of District 52B Representatives County Re resentatives COMMITTEES:CHAIR-EDUCATION/FACILITIES SUBCOMMITTEE;VICE-CHAIR-WAYS AND MEANS;JUDICIARY; ECONOMIC DEVELOPMENT AND INTERNATIONAL TRADE;EDUCATION;HOUSING AND HOUSING FINANCE DIVISION BOARDS:MINNESOTA BOARD OF GOVERNMENT INNOVATION AND COOPERATION September 29, 1997 INFO A MAT! N City of Mounds View 2401 Highway 100 H Mounds View, MN 55112 Dear City Administrator Charles Whiting, Mayor Duane McCarty, and City Council members: This letter is to inform you that we and other legislators are working on bills for the upcoming legislative session that affect cities. They include: 1) Providing 100% funding of county road turnbacks rather than the current 80%. 2) Regional trail and safe trailway crossings funding. 3) Public safety training centers. We would appreciate any input that you might have or the opportunity to meet with you if you would like to discuss these issues or any others. Sincerely, Geri Evans State Representative I 52 Windsor Court,New Brighton,Minnesota 55112 (612)633-6542 413 State Office Building, 100 Constitution Ave.,St.Paul,Minnesota 55155-1298 (612)296-0141 House Fax(612)296-0574 TDD(612)296-9896 s I., �' • r • -1NFORMATi: :,. : ONE MANAGEMENT MEETING MINUTES L.Y • Wednesday, October 1, 1997, 10:00 AM I. Call to Order Meeting was called to order at 10:00 a.m. Present: Whiting, Kessel, Saarion, Hammerschmidt, Ericson, Ulrich, Ramacher, Sanchez. Absent: Zikmund H. September 23 minutes were approved. III. Department Reports- Ramacher reported the Police Department conducted a tobacco sting operation Monday night. A reporter from the Pioneer Press attended. No one was in violation selling to minors. Ericson informed staff that he has executed a search warrant on the Lodmil residence for Wednesday at 2:00 p.m. Ericson will be assisted by Lieutenant Brick, and Ramsey County Social Service inspectors. The exterior, interior, sheds and barrels on the property that are labeled hazardous are to be inspected. Ulrich requested the use of a city vehicle for three of his employees that will be attending a street sweeping seminar for four days in Illinois. Bennett reported the Community Center kitchen will be used next week. She stated that a certified letter was sent to the contractors terminating their contract with the city unless they • complete some work within seven days. Department Heads discussed if sod or sand would be placed in the Children's Home play area and the city's liability regarding a barrier around the play area. IV. Unfinished Business -Whiting recapped the Work Session discussion on the 1998 Budget. He stated that not a lot of questions were asked by council. Ramacher proposed that the department heads prepare a minimum cut of not more than $70,000. Saarion proposed that they present budget option packages that the council would choose from. Hammerschmidt suggested a half dozen packages asking council to prioritize and rate. Whiting stated that he will speak with each council member individually. V. New Business - Whiting presented an office layout that relocated the Community Development department where Administration now is, and the Administration department located out in the front where Community Development is. The plan was approved and a date is to be set for the move. VL Adjournment- There being no further business, the meeting was adjourned at 11:55 a.m. Next meeting is Wednesday, October 8. Respectfully submitted, Tracy Sanchez, Recording Secretary