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HomeMy WebLinkAboutAgenda Packets - 2001/03/05M:\MasterFiles\1999 thru 2010\2001\City Council\Work Session Packets\03-05-2001 W. S\Agenda -- March 5, 2001 Work Session.doc CITY OF MOUNDS VIEW WORK SESSION AGENDA MONDAY, MARCH 5, 2001 5:30 p.m. Council to meet at the Public Works Garage at 5:30 for a tour of the facility. Meeting resumes at City Hall at 6 p.m. Items Discussed Per Consensus 45 minutes 1. Presentation / Discussion of Greenfield Park Ponding Proposal – Rice Creek Watershed District Representatives – Michael Ulrich 10 minutes 2. Banquet Center Management Agreement -- Kathleen Miller 10 minutes 3. Review of Banquet Center Managers Memo Regarding Agreement -- Sharie Linke 15 minutes 4. Community Center – Givonna Reed: NOTE: Report in hard copy only, no electronic copy. 5 minutes 5. Boards and Commissions Appreciation – Givonna Reed will provide a verbal report. 20 minutes 6. Continued Discussion of Street Improvements and Assessment Policy – Michael Ulrich 15 minutes 7. Discussion of possible Nuisance Code Amendments – Jeremiah Anderson 15 minutes 8. Discussion of Highway 10 Redevelopment Opportunities – Aaron Parrish A. Discussion of Highway 10 Redevelopment Opportunities B. Direction Regarding 2625 Highway 10 10 minutes 9. Discussion regarding Highway 10 Proposals – Jim Ericson 5 minutes 10. Upcoming Planning Cases – Jim Ericson will provide a verbal report at the meeting. • Pinewood Elementary Expansion • Minnesota Institute of Public Health office building M:\MasterFiles\1999 thru 2010\2001\City Council\Work Session Packets\03-05-2001 W. S\Agenda -- March 5, 2001 Work Session.doc CITY OF MOUNDS VIEW WORK SESSION AGENDA MONDAY, MARCH 5, 2001 5:30 p.m. Page –2- 10 minutes 11. Title Change – Police Position -- Bill Clark 10 minutes 12. Updated Standardizing Firearms – Bill Clark 15 minutes 13. Monthly Financial Report -- Bruce Kessel 15 minutes 14. Bridges Internet Proposal NOTE: Bring your report. 15 minutes 15. Golf Course Management Agreement Item No. 1 Staff Report No. Meeting Date: March 5, 2001 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 / Discussion of Greenfield Park Ponding Proposal Date of Report: August 29, 2018 Representatives from Rice Creek Watershed District will present the preliminary ponding plans for Greenfield Park. Post cards were sent to over 200 property owners surrounding and adjacent to the area, informing them of this meeting. An informational meeting was held in late February to present these plans, take public comments and consider revisions to the initial plan. The proposed plan will alter the current nature of the park, essentially creating an open water area and will result in the loss of some forested areas. In return for the utilization of public property, the City of Mounds View will receive approximately 4 acres of wetland credits, which may be sold to the public or utilized for City projects involving wetland mitigation. The project, if approved will also provide surface water treatment of an area of the City, which currently has none. In the future, if street improvements are constructed in the area, the City may be requested to construct water quality ponds, which could significantly increase project costs and possible assessments. It is anticipated that the Watershed District will request direction from the City Council whether this project will receive the City’s support to continue. _________________________________ Michael Ulrich, Director of Public Works C:\Mike's documents\projects\Greenfield Park Ponds\Pond Proposal WS Decision.doc M:\MasterFiles\1999 thru 2010\2001\City Council\Work Session Packets\03-05-2001 W. S\Item 02--Banquet Center Mgmt Agreement--Kathleen Miller.doc Item No. 2 Type of Business: WS 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: Kathleen Miller, City Administrator Item Title/Subject: Banquet Center Management Agreement Date of Report: March 5, 2001 Background The Mounds View City Council entered into an Agreement (attached) with Innovative Images on December 7, 1998 for the management and marketing of Mounds View Community Center Banquet Facility. Per the Agreement, Images was paid $18,000 for the year ending 1999. The Agreement clearly states under Article II, on page two (2), “The City will make monthly payments to Images based upon actual gross revenues. Payments will be made within fifteen (15) days following the end of the month for that month’s actual gross revenues.” It has recently come to my attention that this has not occurred, rather Images has been paid on a monthly basis based upon estimated revenues for the year 2000, resulting in an overpayment of $8,092.71. I have attached for your convenience a report I requested the Finance Department provide which illustrates this overpayment. The Finance Department has been directed that all future payments will be in conformance with the City’s Agreement with Images. Staff is seeking City Council direction regarding the overpayment of $8,092.71 to Images. Options for your review include: 1. Bill Images for reimbursement of the $8,092.71 overpayment, allowing thirty days to correct the problem, per section IV of the Agreement. 2. Seek reimbursement over a period of time, with interest. 3. Deduct 15% from future payments made to Images until the City is reimbursed in full. Respectfully Submitted, ___________________________ Kathleen F. Miller City Administrator M:\MasterFiles\1999 thru 2010\2001\City Council\Work Session Packets\03-05-2001 W. S\Item 02--Banquet Center Mgmt Agreement--Kathleen Miller.doc Community Banquet Center Revenue January February March April May June July August September October November December TOTAL Receipts $18,344.76 $14,925.26 $16,997.31 $21,642.19 $27,692.81 $30,304.20 $13,912.73 $9,965.82 $28,407.63 $35,155.38 $14,267.51 $22,630.11 $254,245.71 ETC 8,539.76 10,274.42 10,733.96 10,711.89 16,652.16 19,504.39 7,933.46 8,520.79 13,659.99 25,168.59 13,163.18 7,397.09 152,259.68 Robert's 517.52 969.40 1,619.23 2,642.36 3,741.84 5,754.97 1,812.30 876.25 3,601.42 3,527.90 2,589.47 27,652.66 Security 135.00 135.00 79.50 240.00 225.00 382.50 420.00 75.00 427.50 390.00 67.50 60.00 2,637.00 Liquor/sales tax 577.38 589.61 232.43 687.33 958.29 1,528.17 593.72 424.76 1,305.67 1,553.35 150.50 778.96 9,380.17 Misc refunds 175.00 125.00 300.00 Net revenue 8,575.10 2,956.83 4,332.19 7,360.61 6,115.52 3,134.17 3,153.25 69.02 9,238.05 4,390.54 886.33 11,804.59 62,016.20 Cummulative revenue 8,575.10 11,531.93 15,864.12 23,224.73 29,340.25 32,474.42 35,627.67 35,696.69 44,934.74 49,325.28 50,211.61 62,016.20 Innovative Images: First $30,000 1,715.02 591.37 866.44 1,472.12 1,223.10 131.95 6,000.00 Next $30,000 742.33 945.98 20.71 2,771.42 1,317.16 265.90 2,936.52 9,000.00 Next 30,000 907.29 907.29 Total / contract 1,715.02 591.37 866.44 1,472.12 1,223.10 874.28 945.98 20.71 2,771.42 1,317.16 265.90 3,843.81 15,907.29 Amount paid 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 24,000.00 Difference (284.98)(1,408.63)(1,133.56)(527.88)(776.90)(1,125.72)(1,054.03)(1,979.29)771.42 (682.84)(1,734.10)1,843.81 (8,092.71) Cummulataive (284.98)(1,693.61)(2,827.18)(3,355.05)(4,131.95)(5,257.67)(6,311.70)(8,290.99)(7,519.58)(8,202.42)(9,936.52)(8,092.71) G/L & other worksheets Banq Center rental 34,118.24 meeting room rental 1,865.00 catering rev 12,423.85 liquor revenue 3,223.99 security revenue 563.00 equip. rental 325.10 damage deposit 100.91 sales/liquor tax 9,380.17 Total revenue 62,000.26 Monthly grand total (62,016.20)$ Difference (15.94)$ M:\MasterFiles\1999 thru 2010\2001\City Council\Work Session Packets\03-05-2001 W. S\Item 03--Banquet Center Agreement Memo--Kathleen Miller.doc Item No.3 Type of Business: WS 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: Kathleen Miller, City Administrator Item Title/Subject: Banquet Center Agreement Memorandum Date of Report: March 5, 2001 Background The City of Mounds View received the attached memorandum from Sharie Linke, General Manager of Mounds View Banquet & Conference Center on Thursday as the Work Session Packet material was being compiled. Given that we have not had an opportunity to carefully review this information, staff would recommend the City Council review and discuss with Ms. Lindke her concerns regarding the Banquet Center Agreement and identify any areas that might require further analysis and discussion at a later date. Respectfully Submitted, ___________________________ Kathleen F. Miller City Administrator M:\MasterFiles\1999 thru 2010\2001\City Council\Work Session Packets\03-05-2001 W. S\Item 03--Banquet Center Agreement Memo--Kathleen Miller.doc TO: MOUNDS VIEW CITY COUNCIL FROM: SHARIE LINKE, GENERAL MANAGER MOUNDS VIEW BANQUET & CONFERENCE CENTER (INNOVATIVE IMAGES MARKETING & MANAGEMENT LLC) DATE: MARCH 5, 2001 SUBJECT: REQUEST FOR AMENDMENT TO CONTRACT FOR SERVICES TO MARKET AND MANAGE THE MOUNDS VIEW BANQUET CENTER AND OVERVIEW OF BANQUET CENTER OPERATIONS REQUEST: As President of Innovative Images Marketing and Management LLC, I am requesting that the Mounds View City Council amend the contract between the City of Mounds View and Innovative Images to include a guaranteed payment for management services in the amount of $24,000 per year with additional commission to be paid when gross revenues reach $80,000. I further request that this guaranteed amount be retroactive to January 1, 2000. Furthermore, it is requested that payments be made to Innovative Images every two months in the amount of $4,000.00. BACKGROUND INFORMATION: Over the last 27 months, Innovative Images has been paid only $44,000 for the management of the Banquet and Conference Center. This includes a full-time manager, myself, often working seven days and evenings per week at a minimum of 40 –50 hours per week and Kathy Harrer, my administrative assistant working 40 – 50 hours per month as a paid employee of Innovative Images. Which means Innovative Images pays her social security, workers compensation and unemployment taxes as well as corporate taxes. The approximate breakdown of hours are as follows: Sharie Linke November, 1998 – January, 2001 4440 hours (figured at only 40 hrs./week) Kathy Harrer January, 1999 – January 2001 1340 hours (figured at only 40 hrs/month) Total hours 5780 hours $44,000 divided by 5780 hours equals $7.61 per hour. Kathy gets paid $10.00 per hour. This doesn’t include her benefits or Innovative Images corporate taxes. Why has Innovative Images invested so much time and effort into the project? Because the Banquet Center has possibilities if the City is willing to continue to support our efforts. Innovative Images has NOT been paid since November of 2000. But, in good faith, we have continued to operate the Banquet Center due to numerous commitments for 2001 and a high volume of clients requesting space for upcoming events. Unfortunately, it’s impossible to continue to operate without a guaranteed income. M:\MasterFiles\1999 thru 2010\2001\City Council\Work Session Packets\03-05-2001 W. S\Item 03--Banquet Center Agreement Memo--Kathleen Miller.doc M:\MasterFiles\1999 thru 2010\2001\City Council\Work Session Packets\03-05-2001 W. S\Item 03--Banquet Center Agreement Memo--Kathleen Miller.doc Memo to City Council March 5, 2001 Page two We are getting more and more inquiries and clients coming to facility. That takes more time to coordinate the activities, facility set-up and take-down, cleaning schedules, event supervision schedules, client meetings, and administrative duties. Attached is an overview of the Banquet Center operations for 1999-2001. Please take the time to read this information in order to get a proper perspective into the time and effort put into the establishment of this facility. I encourage every Councilmember to call me or email with questions regarding this operation. Open and clear communication is paramount to the success of any project. Without all the facts, it’s impossible to make an informed decision. Sharie Linke Community Center Office 763-717-4041 Email: shariel@rcmnet.org OR linke2@uswest.net Cell Phone No. 612-839-2103 M:\MasterFiles\1999 thru 2010\2001\City Council\Work Session Packets\03-05-2001 W. S\Item 03--Banquet Center Agreement Memo--Kathleen Miller.doc Mounds View Banquet & Conference Center Overview of Operations 1999 – January 2001 Innovative Images Marketing & Management Innovative Images Marketing & Management was contracted in November of 1998 to establish the procedures, policies and marketing plan for the Mounds View Community Center Banquet Facility. Innovative Images owner, Sharie Linke, has maintained an office at the Center in order to facilitate the day to day administration of the center. Duties include responding to telephone inquiries, showing of the facility Monday – Sunday, daytime and evening, at the convenience of the client. Completing all paperwork relating to rental of facility including but not limited to lease agreement, client profile, and financial reports. Innovative Images Marketing and Management staff dedicates approximately 40 – 50 hours per week at the Center. This would include supervision of all events, administration of facility and records, client interaction, overseeing maintenance of facility, hiring, training, supervising and evaluating personnel, providing marketing concepts and facilitating client needs prior to and during events. Establishment of Procedures and Policies. Through research of other area facilities, not limited to community centers, Innovative Images established the rental rates and policies for use of the facility (see attachments A and B.) These policies and rates are competitive with surrounding facilities including, but not limited to, the New Brighton Family Service Center, Shoreview Community Center, Maplewood Community Center, Maple Grove Community Center, Brooklyn Center Community Center and area hotels and restaurants with meeting facilities. Procedures for documenting client records were established by Innovative Images to include: lease agreements, general policy and decorating policy, reservation cancellation policy, and client profiles (see attachments C, D, E, F, G) Equipment and Facility Needs As the process began to establish the Banquet and Conference Center, it was clear that additional pieces of equipment and facility items needed to be addressed. The following equipment was purchased and services hired to provide a professional facility: Equipment -- • Refrigerator • Ice Machine • Coffee Urn (provided at no cost by Sysco with purchase of coffee product) • Freezer • Dishwasher – (provided by Elegant Thymes Catering) • Commercial carpet cleaner • Commercial vacuum cleaner • Overhead projectors • TVs & VCRs • Microphones • Portable sound system • 40 conference tables M:\MasterFiles\1999 thru 2010\2001\City Council\Work Session Packets\03-05-2001 W. S\Item 03--Banquet Center Agreement Memo--Kathleen Miller.doc *The above kitchen equipment conforms with NSF regulations Banquet Center Overview Page two Services – • Add heavy duty electric service to equipment room • Add water line into equipment room • Add volume control dials to Banquet Room in order to control PA system Marketing the Facility Marketing the facility is of the utmost importance. If people don’t know that the facility is here, there won’t be any rentals. Through a comprehensive marketing plan, Innovative Images staff spent countless hours preparing a wide variety of marketing materials with a goal of increasing usage during non-peak hours. The following are a few of the marketing tactics used to increase clientele: Target Marketing • Corporation, businesses in the north metro area using the Name Bank. • Corporate Planner Conferences – attendance at the Conference at RiverCentre • Schools – offering youth banquet specials • Wedding Fairs – attendance at Wedding Fairs – Mpls. Convention Center • Telemarketing – calling north metro businesses to find out their needs Print / Electronic Advertising • Minnesota Meetings and Events Magazine • Twin City Bridal Association Book • Minneapolis/St. Paul Bridal Association Book • Ads in various local newspapers • Ads in youth sports programs • Bi-monthly articles and ads in Mounds View Matters • Development of website: www.moundsviewbanquets.com • Web advertising on national banquet site: www.banquetrooms.com • Wedding and Corporate Packets • Flyers, brochures, booklets, etc. Open Houses • Bridal Open Houses and Reception Food Tastings are held on a regular basis. • Attendance at Wedding Fairs 2 to 3 times per year. This is a time consuming effort but generally culminates in several bookings. • Corporate Open Houses – held 1 – 2 times per year. Marketing of this facility is an on-going process. It is time consuming but necessary and effective if done properly. After every marketing push, there is a definite increase in inquiries and bookings. M:\MasterFiles\1999 thru 2010\2001\City Council\Work Session Packets\03-05-2001 W. S\Item 03--Banquet Center Agreement Memo--Kathleen Miller.doc Through increased awareness of the facility and outstanding service, weddings and corporate trade has increased each year since its opening. Customer Service Excellence in the area of customer service has been the primary goal of Innovative Images Marketing and Management and Elegant Thymes Catering. From first contact with a prospective client, the staff of both companies strives to be professional, friendly and helpful. Banquet Center Overview Page three This philosophy has paid off with the recent addition of three corporate clients: Minnesota Department of Transportation, Minnesota State Department of Children, Families and Learning, and the University of Minnesota Extension Service. Upon completing evaluations, each client gave our facility a very high rating. No matter how large or small an event is each client is given individualized attention to every detail. Though the diligent efforts of Innovative Images and Elegant Thymes staff, we have gained an outstanding reputation for excellence in service. This is evident through “word of mouth” advertising and referral clients, especially from the wedding reception trade. Value to the City of Mounds View As most people know, it takes a business at least 3 – 4 years to get of the ground and begin showing a profit. Through a contractual agreement with Innovative Images Marketing and Management, the City of Mounds View has had an ideal situation. Not only does Innovative Images bring its experience in marketing and event planning to the center, but also over 25 years of community involvement and awareness of the dynamics of the city and surrounding communities. This is extremely advantageous to the City of Mounds View when dealing with the residents of the City. Groups such as the girl scouts, boy scouts, Irondale High School band and athletic groups, Lions Club, Chamber of Commerce, local church groups, senior citizens, and other non-profit groups have used the center for a wide variety of activities from the “Me and My Guy Dances” for the girl scouts, to the Blue and Gold Banquet for the boy scouts, swing dances for the band, Harvest Ball for the senior citizens and more. The school district has held many activities in the center including four ALC graduations. The DARE graduation was held there as well. Do these activities bring in revenue for the City and for Innovative Images? Definitely NOT! But they do bring good will and people into the center. As General Manager of the facility, I firmly believe that participating in events held in the center is good public relations, especially when the residents know that their tax dollars have been used to build a facility. Why do I believe that? I believe it because I am an active volunteer in the City and a taxpayer as well. Unfortunately, non-profit activities do negatively affect the “bottom line”. These are trade offs that I feel are necessary. How much would it cost the City to hire a Banquet Manager and Assistant? A full time Banquet Manager employed by the City of Mounds View at a salary level comparative with other banquet centers would be the following: Manager’s Annual Salary (40 hours/week) ...................................................... $38,000.00 Benefits (FICA, workers compensation, unemployment insurance, PERA)......... 5,700.00 M:\MasterFiles\1999 thru 2010\2001\City Council\Work Session Packets\03-05-2001 W. S\Item 03--Banquet Center Agreement Memo--Kathleen Miller.doc Health insurance ................................................................................................. 2,400.00 Total Managers Salary .................................................................................. $46,100.00 Administrative Assistant’s Salary (20 hours/week) @ $10.00/hour ................. $10,400.00 Benefits (FICA, workers compensation, unemployment insurance, PERA)......... 1,560.00 Health insurance (prorated) ................................................................................. 1,200.00 Total Administrative Assistant Salary ......................................................... $13,160.00 Event Supervisors (average 50 hours/month @ $8.00/hour) ............................ $4,000.00 Benefits (FICA, workers compensation, unemployment insurance) ....................... 480.00 Total Event Supervisors ................................................................................. $4,480.00 Total Estimated Salaries for City employed staff ....................................... $63,740.00 Banquet Center Overview Page four Events held in 1999 Weddings ...................................................................................................................... 13 Anniversaries/Banquets................................................................................................... 2 Non-Profit/School District .............................................................................................. 26 Corporate ...................................................................................................................... 48 Youth Banquets ............................................................................................................... 3 City meetings/events ..................................................................................................... 11 Promotional marketing events ......................................................................................... 9 YMCA Classes/Senior Exercise .................................................................................... 65 Church ........................................................................................................................... 28 Senior Events/Resident groups ....................................................................................... 4 Concert ............................................................................................................................ 1 Total activities held in Banquet Center or Dance Floor in 1999 ......................... 210 Events held in 2000 Weddings ...................................................................................................................... 29 Anniversaries/Banquets................................................................................................... 8 Non-Profit/School District .............................................................................................. 27 Corporate ...................................................................................................................... 39 Youth Banquets ............................................................................................................. 13 City meetings/events ..................................................................................................... 12 Promotional marketing events ......................................................................................... 7 YMCA Classes/Senior Exercise .................................................................................. 115 Church ............................................................................................................................. 6 Senior Events/Resident groups .................................................................................... 10 Concert ............................................................................................................................ 3 Total activities held in Banquet Center or Dance Floor in 2000 ......................... 269 Events already booked for 2001 M:\MasterFiles\1999 thru 2010\2001\City Council\Work Session Packets\03-05-2001 W. S\Item 03--Banquet Center Agreement Memo--Kathleen Miller.doc Weddings ...................................................................................................................... 30 Anniversaries ................................................................................................................... 4 Non-Profit/School District ................................................................................................ 7 Corporate ...................................................................................................................... 28 Youth Banquets ............................................................................................................. 11 City meetings/events ....................................................................................................... 2 Promotional marketing events ......................................................................................... 2 YMCA Classes/Senior Exercise .................................................................................. 104 Church ............................................................................................................................. 0 Senior Events/Resident groups ....................................................................................... 1 Concert ............................................................................................................................ 0 Total activities scheduled to date Banquet Center or Dance Floor in 2001 ...... 188 M:\MasterFiles\1999 thru 2010\2001\City Council\Work Session Packets\03-05-2001 W. S\Item 03--Banquet Center Agreement Memo--Kathleen Miller.doc Banquet Center Overview Page 5 Explanation of Events Weddings: Wedding receptions with average attendance of 200 – 250. They generally include complete catering and beverage service with gross catering revenues on average of $3000. The City receives a percentage of the beverage and catering revenues. Anniversaries-Banquets-Miscellaneous: Anniversary parties, a variety of banquets and events that are not youth related or corporate, i.e. World Harvest Ministries Fundraising Banquet, dances that don’t include catering, craft fairs, etc. Corporate: Conferences, seminars, luncheons, recognition banquets, meetings all for corporations, small businesses, Chamber of Commerce, etc. Non-Profits/School District: Any activities held by local non-profit organizations such as girl scouts and boy scouts, Lions Club, Garden Club, Festival Committee, etc. In addition this includes School District activities and meetings whereby they receive the room and catering at a greatly discounted rate. This includes ALC graduations, meetings and seminars, band booster activities, student activities, etc. It also includes use by other building tenants such as Children’s Home Society and Community Education. Youth Banquets: Youth awards and recognition banquets held by local high schools at the end of the season or for special events. A special youth all inclusive banquet menu is used for their convenience in planning the event. We currently do many banquets for Irondale, Mounds View, Spring Lake Park, Fridley, Centennial, and Osseo. City: These are events, meetings, activities planned by the City of Mounds View Staff or Council. Although a specific time line is stated in the contract, Innovative Images has remained very flexible regarding the scheduling of these activities in order to facilitate the City’s needs. YMCA Classes/Senior Exercise: Senior Exercise programs (1 hour on Mondays & Thursdays) are given use of the dance floor area twice a week, as it is important for them to maintain a consistent exercise regimen. There are approximately 30 seniors that exercise regularly. In addition, when available, the YMCA uses the dance floor area for such activities as pre-school dance, line-dancing, etc. The YMCA does not pay for this space and it is used only when paying event has not previously been scheduled. Resident Miscellaneous and Seniors: Use includes memorial services, senior dances, homeowner association meetings. Church: Church groups meeting at the center sometimes use the area for play practice, choir practice, etc. Concerts: Large volume concerts seating up to 450 people. M:\MasterFiles\1999 thru 2010\2001\City Council\Work Session Packets\03-05-2001 W. S\Item 03--Banquet Center Agreement Memo--Kathleen Miller.doc Mounds View Banquet Center Overview Page 6 The events are listed by individual event only, not the number of hours the event uses the banquet center. Some activities may use the center for only an hour like the senior exercise while other activities such as the corporate rentals will use the facility the entire day (8 hours). The average wedding reception rental is 10 hours and the average youth banquet rental is 3 hours. So while it may look like the YMCA uses the facility more than anyone else, each event is only one hour in length. So in comparison, weddings for 2001 will take approximately 300 hours of the facility time and the YMCA only 104 hours. Use of the facility by non-profit groups is at a discounted rate. Use for wedding receptions is at the full weekend rate. So again, just by using the per event statistics, is not necessarily an accurate comparison. Conclusion Through marketing and extensive customer service efforts, the number of corporate and wedding clients is on the increase and should continue to grow if the same level of service is maintained. Corporate and wedding clients both expect to receive professional, patient, detailed service. Prompt return of phone calls, decisive responses and experienced planning are all attributes that Innovative Images staff has strived to provide. Continued target marketing and sales in the corporate area as well as participation in wedding industry marketing will ensure that the clientele continues to utilize this facility. While use by community organizations and residents is important, it must be realized that this use does not provide a revenue source and generally is more labor intensive than “paying” customers. Innovative Images has provided event supervision and liaisons for these activities although it is not contractually required. This is another area in which Innovative Images has, in good faith, continually provided professional management of this City facility while not receiving compensation. In order for Innovative Images to continue to plan for the future of the Mounds View Banquet and Conference Center, revision of the contract between the City of Mounds View and Innovative Images must be amended to accommodate for the extensive labor put into the management of this facility for non-revenue producing activities. It is imperative that effective and open communication as well as trust between the City staff, City Council and Innovative Images be established and maintained in order to ensure that the Mounds View Banquet and Conference Center will flourish for many years to come. Item No. 6 Staff Report No. Meeting Date: March 5, 2001 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: Continued discussion of Street Improvements and Assessment Policy Date of Report: August 29, 2018 Staff has obtained some additional information requested by the City Council the last time this issue was before the Council. 1. Eliminating the 25% assessment for Curb and Gutter will add approximately $130,000 to the City cost of a three quarter (3/4) mile project. 2. Utilizing the entire franchise fee (4%)for payment of possible bonded projects will still result in an assessment of approximately $2,200.00, for a ¾ mile project with an estimated 100 parcels, for a 20 year construction schedule (10 Projects) 3. A franchise fee of 5.3% would be required for the same 20-year schedule to eliminate individual property assessments. 4. The established Pavement Condition Index (PCI) ratings which establish various maintenance / reconstruction, can vary from agency to agency, somewhat of a standard is 0 –35 reconstruct, 36 – 55 overlay, 56 – 90 maintenance. Methods vary with pavement designs and other factors such as drainage, existing curb and gutter and pavement structure. Mounds View’s current threshold PCI’s are 0 – 45 poor, reconstruct & no preventative maintenance. PCI’s of 75 and higher receive preventative and permanent maintenance procedures. The area in between these two PCI’s should be for overlay and mill and overlays, but this procedure will not correct drainage issues in most cases, and the initial pavement structure must be adequate for this application. Staff presented survey information from the surrounding Cities also at the last meeting. Council made requests for the results and additional information. The following are the results of the initial inquires and the additional information. a. New Brighton Reconstructs 2-5 miles per year, replace streets after 30 years, perform sealcoats and crack sealing throughout life cycle, possible mill and overlay on some streets. The average assessment is $1,000.00 per lot, they use no Pavement Management Program but do evaluate pavements internally, do neighborhood improvements and funding is from the yearly capital improvements budget. b. Shoreview Reconstructs approximately ½ mile of residential streets per year. Storm sewer is based on square footage; the maximum amount assessed is $1,120.00. This is assessed only one time on the property even if in 10 years they return to do another project on the City of Mounds View Staff Report August 29, 2018 Page 2 storm sewer. They assess only for curb and gutter because the theory of reconstructing the road is to bring it up to standards and the curb and gutter is necessary for that achievement. The assessment is the total cost of the curb and gutter for the project divided by the residential units plus any storm sewer assessment. Shoreview has a Pavement Management Program and works on a Municipal State Aid street occasionally. c. Roseville Has reconstructed 4 miles per year for the past 12 years, now they are concentrating on MSA streets, 1 –2 miles per year. They have a Pavement Management Program with rating of 0 –35 Problem, 36 –56 Marginal, 56 and Over Adequate. The average assessment is 25% of the project, excluding utility repairs. They also do neighborhood projects. d. Blaine Utilizes software named Roadware, which rates the pavements from 1 – 10, 1 being the worst. Staff has been directed to only perform overlays, which are not assessed. Budgeted annually is $500,000.00 e. Spring Lake Park Reconstructs approximately 4 miles per year, plans to complete the entire city in the next 4 years. The assessment is 40% of the project, which is approximately $2,200.00 per property. Staff will bring the project map and PCI map to the Council Meeting. If this information is incomplete in regards to what members of the Council requested, please call me. _________________________________ Michael Ulrich, Director of Public Works Item No: 7 Meeting Date: 3/5/01 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 & City Council From: Jeremiah Anderson, Housing/Code Enforcement Inspector Item Title/Subject: Discussion regarding possible amendments to Chapter 607, Nuisances, of the City Code Date of Report: February 26, 2001 Background: Chapter 604 of the Mounds View City Code, Nuisances, was completely repealed and replaced with a new Chapter 607, Nuisances, on March 20, 1995 with the passage of Ordinance 556. One of the biggest changes that came with Ordinance 556 was the addition of some City abatement procedures. Since that time, there have been only minor changes to the existing Nuisance Code. Almost six years have passed since the last major review of the Nuisance Code. During that time, enforcement issues relating to junk, garbage, debris and abandoned/junk vehicles have accounted for the majority of all violations. These violations continue to be the most prevalent and are, the most time consuming violations for staff to resolve due to their abundance and the social/economic conditions that often accompany their presence. In addition to consuming staff time, these types of violations contribute to urban blight, which has a direct impact on the appearance of a community. The current provisions of the Nuisance Code allow for the abatement of vehicles and other public nuisances. However, after review of the current enforcement provisions in the Nuisance Code, it appears that several areas may need to be clarified in order to allow staff uniform enforcement procedures that are at a minimum, equal to Minnesota State Statutes. When a vehicle is found to be in violation of the provisions in Chapter 607 of the City Code, a notice of violation is sent out to the property owner specifying a timeframe for compliance. If the property owner does not comply within the timeframe allowed, staff has two primary options available; 1) Begin the abatement process, or 2) Issue an Administrative Offense or Ramsey County District Court Citation. Since the primary goal of a code compliance program is not to impose monetary fines, but rather gain overall compliance, the fines associated with the two approaches in option 2) infrequently achieve the desired result of compliance. Discussion regarding possible Nuisance Code Amendments February 26, 2001 Page 2 Discussion: Minn. State Statute § 168B.101 Subd. 2 allows units of local government to adopt ordinances and regulations to control the matter of unauthorized vehicles in accordance with Minn. Statutes § 168B.01 to 168B.101. However, the ordinances and regulations cannot be less stringent than the provisions in Minn. Statutes § 168B.01 to 168B.101. Since Minn. Statute § 168B.04 gives units of government and peace officers the authority to take into custody and impound unauthorized vehicles, the City is authorized to impound these vehicles without obtaining a judicial determination, (see the attached letter from Kennedy and Graven for further information on this) as long as the local ordinances are not less stringent that the statute. Currently, Section 607.06 Subd. 7a of the Mounds View Code addresses the abatement of vehicles. Section 607.06 Subd. 7a authorizes any police officer or other duly authorized person to immediately order any vehicle constituting a public nuisance to be immediately removed and/or impounded, while section 607.08 Subd. 1 addresses property abatement proceedings in general. Currently, there is no reference in the enforcement section of the Nuisance Code as to the exact procedure for the abatement of vehicles that are considered a public nuisance. However, section 607.06 Subd. 7b of the Code, which addresses the notice and sale of any vehicle impounded, does reference the entire Minn. Stat. § 168B, governing the sale of abandoned motor vehicles. Under the provisions in section 607.08 Subd. 3 of the nuisance code, the owner or other responsible party of the property on which a nuisance has been abated by the City is responsible and personally liable to the City for the cost of abatement. Section 168B.07 of State Statutes provides the owner of a impounded vehicle the right to reclaim such vehicle from the unit of government or impound lot operator upon the payment of all towing and storage charges. Thus, the City would not have to initially pay the abatement expenses and then bill the property owner. Recommendation: Authorize staff to research the matter further and draft an ordinance that strengthens the existing nuisance code provisions regarding the abatement of vehicles which constitute a public nuisance. Jeremiah Anderson Housing/Code Enforcement Inspector Attachments: 1. Chapter 607 (Nuisances) 2. Letter from Kennedy and Graven Dated July 31, 2000 3. Minnesota State Statute 168B Item No. 8A Meeting Date: March 5th, 2001 Type of Business: WK WK: Work Session; PH: Public Hearing; CA: Consent Agenda; EDA: EDA Business City of Mounds View Staff Report To: President and EDA Commissioners From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: Discussion of Highway 10 Redevelopment Opportunities Date of Report: February 28, 2001 Background: While the Economic Development Commission is currently evaluating redevelopment priorities, several recent events have occurred in an area that could be considered a high priority redevelopment area. Accordingly, staff thought that it would be prudent to make the EDA aware of current issues associated with the redevelopment area in question. This area, situated between Silver Lake Road, County Highway 10, and Groveland Road, is illustrated below: The redevelopment area illustrated above is a point of reference. It is anticipated that the area will change based on further EDC review and potential projects submitted for consideration. The current land uses by parcel are: A: Sporting Goods Store/Liquor Store B: City Owned Residential Property C, E, F: Vacant Land D: Vacant Building (Pak Building) G: Vacant Gas Station All of the above parcels are located within TIF District #2 with the exception of parcels “C” and “E.” Parcels “A” and “D” are shown below: As previously stated, there are several current opportunities that make this area conducive to redevelopment at the present time. First, inquiry has been made to the city about potential redevelopment of the former Amoco site (parcels “F” and “G”). While nothing has been solidified at this point, the possibility of a “sit-down” restaurant was discussed. The same party indicated an interest in acquiring the vacant lot behind the Pak Building (parcel “E”) for upscale town home development. These two projects could proceed independently, but given other redevelopment possibilities on adjacent parcels, staff felt that a more comprehensive approach might be considered. From a planning perspective, a well articulated mixed-use planned unit development is preferable to “spot” development. Second, if it is the intent of the EDA to acquire and redevelop the Pak Building site (parcel “D”) at some point, it might be better to do so in the near term. This is due to the fact that the building does not currently have a tenant. As a result, relocation expenses could be significantly minimized. It is my understanding that a realtor has been retained to lease the property. Finally, a vacancy currently exists at the city’s rental property located at 7861 Groveland Road. If the EDA would like to proceed in redeveloping the area, then staff would not re-lease the property. Discussion Points: 1. What is the EDA’s perspective as it relates to redeveloping this area? 2. If the EDA would like to see this area redeveloped in the near term, what action should staff take? Potential actions might include: • Having a site specific plan for the area prepared, or attempting to have a site specific redevelopment plan prepared in conjunction with the current Highway 10 planning process (This would be an add-on to the RFP, therefore subject to additional charge) • Examine the possibility of acquiring the Pak building. However, in the past they have indicated an unwillingness to sell the building to developers and others that have approached them. This is also the case with the sport shop / liquor store. 3. If the EDA would like to see property acquired and redeveloped in the near term, would the EDA be willing to use eminent domain to acquire property for redevelopment purposes? Of course, this authority is used only if a property owner is unwilling and/or unreasonable and only after all others avenues have been exhausted. 4. What would the EDA like done regarding the rental property located at 7861 Groveland Road? Necessary Actions: Provide direction to staff regarding the aforementioned discussion points. ______________________________________ Aaron Parrish, Economic Development Coordinator (763) 717-4029 Item No. 8B Meeting Date: March 5th, 2001 Type of Business: WK WK: Work Session; PH: Public Hearing; CA: Consent Agenda; EDA: EDA Business City of Mounds View Staff Report To: President and EDA Commissioners From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: Direction regarding 2625 Highway 10 Date of Report: February 28, 2001 Background: Recently, city staff had the opportunity to meet with the owners of Mounds View Animal Hospital. They are currently located at Silverview Plaza, but would like to construct or purchase a 3,000 to 5,000 square foot building. While a range of potential alternatives were discussed, they indicated a preference for two particular sites. First, they asked about the possibility of building on City owned property located 2625 Highway 10. This property is illustrated below: This property, commonly referred to as the “Blue House” property, has been the subject of inquiry in the past. Previous proposals contemplated affordable town house development and a Walgreens. For a variety of reasons, these proposals were determined to be unacceptable and/or infeasible. At this point, the Mounds View Animal Hospital has asked if the following questions could be addressed: 1. Is the city interested in having this property developed? 2. If so, what would the city be willing to sell the property for? 3. Could tax increment financing assistance be made available? With regard to item number two, the City purchased the property for $120,000 and then subsequently incurred some demolition costs. If the city were interested in developing/selling the property, I would suggest selling the property at a substantially reduced price given its limited development potential. The development potential is constrained due to limited access (currently right in, right out only off of County Road I), adjacent land uses, and the small size of the parcel (approximately .8 acres). Since the parcel is within TIF District #1, the city could expect to recuperate its acquisition costs plus generate additional revenue over the next twelve years. This is possible through additional pooled increment resulting from the new construction. The following is illustrative: Suggested Sale Price $ 50,000 Potential Additional Pooled Increment Generated $193,060* Total Revenue Associated with Property $243,060 Minus Initial Acquisition Cost $120,000 Net Increase in Revenue Until District Decertification: $123,060 *This is based on an assessed market value of $500,000 resulting in annual real estate taxes of $19,306 over a 10-year period. While the above is an approximation, over the remaining life of TIF District #1 it appears as if the city would generate additional revenue even after selling the property at a reduced price. Of course, the above is also predicated on the fact that additional TIF assistance would not be provided. After a cursory review, it does not appear as if the potential project is a strong candidate for TIF assistance. The ongoing administrative and legal costs, limited capacity for the project to generate revenue, and other issues associated with providing TIF assistance provide the basis for this interpretation. Should the EDA determine that development should not occur on the parcel, staff would also request direction about what to do with the property. Options could include leaving it undeveloped, landscaping, and so on. The second alternative being considered is across the street adjacent to the WIN Insurance Agency. This parcel is highlighted as “alternative site” on the map above, and is part of the Silverview Estates Planned Unit Development. The PUD allows for up to 5,000 square feet of office to be developed on this particular parcel. This property is located within TIF District #2. Discussion: 1. Is the city interested in having this property developed? If not, what should be done? 2. If so, would the city be willing to sell the property to Mounds View Animal Hospital, and on what terms? Necessary Actions: Provide direction on the use of 2625 Highway 10. ______________________________________ Aaron Parrish, Economic Development Coordinator (763) 717-4029 Item No: 9 Meeting Date: March 5, 2001 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 & City Council From: James Ericson, Community Development Director Item Title/Subject: Discussion Regarding Highway 10 Reconstruction and Revitalization Plan Proposals Date of Report: February 28, 2001 Background: On December 12, 2000, the City Council authorized the distribution of a request for proposals (RFP) for a design consultant to develop and recommend a Highway 10 reconstruction and revitalization plan. The RFPs were delivered to more than 50 area consultants on December 14, 2000. The deadline for a response was set for February 16, 2001. After many meetings, phone calls and miscellaneous communications with many consultants, the City received proposals from URS/BRW; SEH; SRF; Parsons Transportation Group; Bonestroo, Rosene, Anderlik & Associates; and Dahlgren, Shardlow and Uban (DSU); six in all. Discussion: Staff reviewed the proposals in the context of how closely the firms were able to address the issues outlined in the RFP, their understanding of the work to be performed for the City, their relevant experience, the competence of the team, and their level of detail. Since all of the proposals were submitted by experienced firms with qualified staff, the analysis boiled down to which did the best job articulating its response and how well the proposal captured the essence of what Mounds View is attempting to accomplish with this corridor project. Staff narrowed the field of proposals down to three finalists, URS/BRW, SEH and Bonestroo, and invited each project team in for an interview & presentation in an effort to get a better sense of their respective abilities and vision. The interviews are scheduled for Monday and Tuesday, March 5 and 6. After the interviews have been completed and staff has had an opportunity to reconvene, it is expected that a final candidate will be selected and forwarded to the Council for its consideration on March 12, 2001. The following represents some of the factors that led to the selection of the three consultants: URS/BRW • Familiarity with the City and Ramsey County, Highway 96 Corridor plan • Extensive corridor and design theme experience • Detailed project approach and work plan Highway 10 Proposal Update March 5, 2001 Page 2 SEH: • Level of understanding as to the purpose and intent of the study • Detailed project approach and work plan • Identification of potential funding sources Bonestroo: • Organization of the proposal, level of detail • Comprehension of the project goals and vision • Funding source identification and analysis • Scope of Public Involvement The proposals from the consultants not chosen for interview and presentation—SRF, Parsons and DSU—were also quite good, which made the selection process difficult yet to the ultimate benefit of the City. Recommendation: No action is needed at this time. Staff would anticipate however that a resolution would be before the Council at your meeting on March 12, 2001 to award the contract for the project to one of the consultants. _____________________________________ James Ericson Community Development Director F:\DATA\GROUPS\COMDEV\SPECPROJ\Sp077.00 (Highway 10)\Project\Council Report - March 5, 2001.doc Item No. 11 Type of Business: 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: William A. Clark, Chief of Police Item Title/Subject: Title Change – Police Department Position Date of Report: August 29, 2018 Title Change From Police Lieutenant to Police Commander: The Police Civil Service Commission voted at their November 20, 2000 meeting to recommend a change in position title for the Police Lieutenant. The item was considered after a request from me. The title change is status only, and was not considered a salary item or salary change. The status change is similar to changes that have occurred in the Law Enforcement family around us (attached survey). Police Commander was recommended to the Commission because it follows the trend being developed by St. Paul and Minneapolis, who are our area leading edge agencies. This Position title change places our number two position on an equal status with the Departments we deal with. Our Lieutenant currently is required to attend functions where the rank is the lowest present, although he fills the same job as the others. Raising his stature will raise his credibility. Police agencies are very rank and status aware, and this is based on their quasi-military organization. The Change in status will also allow us to send the individual to advanced training that requires the stature of Major or above. Respectfully Submitted, ___________________________ William A. Clark Chief of Police Survey of Minnesota Law Enforcement Agencies to determine position title for person second in command, directly below the Chief Law Enforcement Officer Of 31 Responding Agencies, the reported breakdown was as follows: Captain- 9 Agencies (one was Co-director of Public Safety/Captain) Chief Deputy- 7 Agencies (Sheriff’s Departments) Deputy Chief - 5 Agencies Sergeant- 4 Agencies Deputy Director or Co-Director of Police/Public Safety/Law Enforcement- 3 Agencies Lieutenant- 2 Agencies Assistant Chief- 1 Agency Columbia Heights: Captain Champlin: Deputy Chief St. Paul Park: Sergeant New Hope: Captain (2) St. Anthony: Captain Le Sueur County: Chief Deputy Winona County: Chief Deputy Cottage Grove: Co-Director of Public Safety / Captain Crystal: Captain (2) West St. Paul: Deputy Chief Blue Earth County: Chief Deputy Minnetrista: Lieutenant Albert Lea: Assistant Chief Ramsey County: Chief Deputy Olmsted County: Director of Law Enforcement Waseca: Sergeant Pope County: Chief Deputy Houston County: Chief Deputy Fridley: Captain (2) Orono: Operations Sergeant Northfield: Captain Plymouth: Lieutenant (4) Buffalo: Sergeant (2) Scott County: Chief Deputy Faribault: Captain Blaine: Captain Spring Lake Park: Sergeant New Brighton: Deputy Director of Police Woodbury: Deputy Chief Roseville: Deputy Chief Moorehead: Deputy Chief (2) Agencies that indicated more than one person in the position of second in command disclosed that each supervisor was usually in charge of a particular division (i.e.: detectives, patrol, administration, etc.). Minneapolis and St. Paul utilize the title of Commander heavily (District Commander, Shift Commander, Watch Commander, Precinct Commander etc.) Item No. 12 Type of Business: 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: William A. Clark, Chief of Police Item Title/Subject: Standardizing Police Firearms Date of Report: August 29, 2018 STANDARDIZING POLICE FIREARMS – STATUS REPORT Based on the Goals in the Annual Police Report, and as a budgeted item, the Department has established a committee to developed criteria for standardized firearms. The Department has tested numerous firearms with the participation of the members of the agency. By survey, the list was narrowed to two firearms, and the Department would like to begin processing for bids. To update the Council, items considered during the process were safety features, dependability, calibier, uniformity to other agencies, conformity to all size hands, and the preferences of the members of the Department. This item will have benefit to the Department in issues of vicarious liability, training, safety, and control. RECOMMENDATION: It is requested that the Department continue with the standardization process and place the items out for bid. Respectfully Submitted, ___________________________ William A. Clark Chief of Police DRAFT Last Updated: 2/8/2001 CARLSK-129390v10 MU125-33 GOLF COURSE MANAGER EMPLOYMENT AGREEMENT THIS EMPLOYMENT AGREEMENT ("Agreement") is entered into this __________ day of ____________________, 2001 between the CITY OF MOUNDS VIEW, a municipal corporation under the laws of Minnesota ("City") and JOHN HAMMERSCHMIDT ("Hammerschmidt") for the position of the City's Golf Course Manager. WITNESSETH: WHEREAS, the City is the owner of The Bridges golf course ("The Bridges") located in the City of Mounds View; and WHEREAS, Hammerschmidt is experienced in the management of golf courses and is willing to enter into this Agreement; and WHEREAS, the City desires to employ Hammerschmidt as the City’s Golf Course Manager, and Hammerschmidt desires to be so employed; and WHEREAS, the City desires to establish certain conditions of employment in connection with Hammerschmidt’s service to the City as Golf Course Manager. NOW, THEREFORE, in consideration of the mutual covenants and agreements as set forth herein, the sufficiency of which is hereby acknowledged by both parties, the parties agree as follows: ARTICLE I: EMPLOYMENT POSITION The City agrees to employ Hammerschmidt as Golf Course Manager and Hammerschmidt agrees to be employed by the City as Golf Course Manager. ARTICLE II: TERM OF AGREEMENT The initial term of this Agreement will be five (5) years, commencing on January 1, 2001, and continuing through December 31, 2005. This Agreement shall automatically renew for two additional five (5) year terms under the same terms and conditions unless either party gives written notice of termination to the other party on or before June 30 in the fifth year of each five (5) year term of the Agreement or the Agreement is terminated by either party for breach of the Agreement pursuant to Article V of this Agreement. DRAFT Last Updated: 2/8/2001 CARLSK-129390v10 MU125-33 ARTICLE III: COMPENSATION The compensation and benefits set out in this Article represent the total compensation to be paid to Hammerschmidt for performance of this Agreement. A. Base Salary. The City will pay Hammerschmidt a base salary of $__________ per year in 2001, including the City’s standard contributions toward the Minnesota Public Employees Retirement Fund, Social Security, Medicare, and health insurance. In future years, Hammerschmidt's base salary will increase by the same percentage increase granted to City administrative personnel. B. Incentive Pay. Hammerschmidt will be eligible for incentive pay (as defined and calculated in this Article) based on performance of The Bridges and the total personnel costs at The Bridges. C. Compensation Limitations. Hammerschmidt’s total compensation shall not to exceed 95% of the City Clerk-Administrator's maximum salary, shall not exceed any limits established by Minnesota Statutes, and shall be established in such a manner so as to maintain the City's compliance with the State of Minnesota's pay equity statutory requirements. In addition, the total of all incentive pay shall not exceed 54% of Hammerschmidt's base compensation. D. Incentive Pay Calculation. Hammerschmidt's final incentive pay will be calculated annually based on audited financial statements from the Golf Course and established by separate resolution adopted by the City Council in an amount up to 5% of the gross revenues at The Bridges, subject to the following conditions: Total compensation for all City employees at The Bridges, including incentive pay established by the City Council, shall not exceed 48% of gross revenues at The Bridges. Total personnel costs shall include all salaries, including incentive pay, and the associated employer's share of benefits including but not limited to retirement, payroll taxes, proportional percent of workers' compensation, health insurance and unemployment. Personnel costs shall exclude the personnel costs associated with lessons. Gross revenues shall include all revenues derived from activities conducted at The Bridges, excluding billboard lease revenues, hard goods as set forth in Exhibit A, and less general sales taxes and sales taxes imposed on the sale of alcoholic beverages. Prepaid fees will not be considered revenues until such time as The Bridges has provided the goods or services necessary to earn such fees. Discounts will be considered a reduction of gross revenues. Revenues from lessons, interest earnings and the proceeds from the sale of non-merchandise items will be excluded from gross revenues. All sales revenues derived from merchandise sales, which shall include food, beverages, apparel, memorabilia, golf equipment and supplies and similar items, as well as net sales on items specifically identified as hard goods as set forth in Exhibit A to this Agreement, shall be included in gross revenues. The average markup on merchandise sales, which shall include food, beverages, DRAFT Last Updated: 2/8/2001 CARLSK-129390v10 MU125-33 apparel, memorabilia, golf equipment and supplies and similar items, but shall exclude items specifically identified as hard goods as set forth in Exhibit A to this Agreement, shall be at least 85% of the cost of said merchandise including shipping and/or delivery charges. Hard goods, as set forth in Exhibit A to this Agreement, shall be sold for at least the cost of said merchandise. E. Extraordinary Circumstances. In situations brought about through acts or conditions that are deemed to be outside the normal scope or course of operations for The Bridges and which result in a change in circumstances for the Bridges, the City may in its sole discretion to deviate from or spend more than the 48% of gross revenues of The Bridges for total compensation for all City employees at The Bridges. F. Payment of Incentive Pay. The payment of any incentive pay shall be paid annually as set forth herein. Ninety five percent (95%) of any incentive pay shall be paid annually on or before December 15th based upon the projected end of year revenues for the Bridges. The retained five percent (5%) amount of the incentive pay shall be paid, if required, at such time that audited financial statements for the preceding year are available and support payment of the retained five percent (5%) amount. Any difference between projected end of year revenues for the Bridges and audited financial statements for The Bridges shall be reconciled prior to payment of any of the retained five percent (5%) amount, if such payment is required. G. Use of Flex Time. The annual year for accumulation of flex time leave, as defined in the City’s Personnel and Administrative Handbook, for Hammerschmidt shall be from April 1st to March 31st of the following year. Hammerschmidt shall utilize accrued flex time leave during the time period The Bridges is not open for the golf season and prior to March 31st of each year, if possible. Any accrued flex time balance shall be reduced to forty (40) hours on March 31st of each calendar year, with no additional accrued flex time leave to be carried over past March 31st of each calendar year. H. Professional Organizations, Meetings and Activities. Subject to approval of the City, Hammerschmidt may attend and participate in appropriate professional meetings at local, state, and national levels and in such organizations deemed appropriate for the performance of Hammerschmidt’s duties, with reasonable expenses for such attendance and dues and membership fees to be borne by the City. Hammerschmidt may hold offices or accept responsibilities in these organizations as long as they do not interfere with the performance of Hammerschmidt’s duties as required by this Agreement. I. Use of Vehicle. Subject to Minnesota Statutes Section 471.666, and any other applicable federal, state or local law, rule, resolution or ordinance, Hammerschmidt shall have the use of a truck of his choosing, subject to the approval of the City. Said vehicle shall be replaced every five years. The City shall maintain automobile liability, property damage, and comprehensive insurance and pay the normal and necessary expenses for operation and maintenance of such vehicle. DRAFT Last Updated: 2/8/2001 CARLSK-129390v10 MU125-33 ARTICLE IV: DUTIES AND RESPONSIBILITIES A. Mutual Duties and Responsibilities. The parties agree to cooperate with each other toward the common goal of effectively operating and maintaining The Bridges and other City departments, facilities, and equipment. Whenever possible, golf course employees and other City employees will assist each other in achieving this common goal. Such assistance will be provided at no additional cost to the department or program receiving the assistance, provided, that the time spent by golf course employees providing assistance at City facilities other than The Bridges is approximately equal to the time spent by other City employees providing assistance to golf course employees. Hammerschmidt will keep accurate time records for services rendered by golf course personnel providing assistance to City departments other than The Bridges. B. Hammerschmidt's Duties and Responsibilities. Hammerschmidt will be responsible for the management and operation of The Bridges. Hammerschmidt will perform all functions and duties required of his position as Golf Course Manager as set forth in the job description attached hereto as Exhibit B and incorporated herein by reference, or as required by law or ordinance. C. The City's Duties and Responsibilities. The City agrees to do the following: 1. Make all debt service payments, as required by golf course bond covenants, and ensure adequate funding for agreed-upon capital improvement projects to the extent revenues from The Bridges are available for such projects. 2. Approve an annual budget including adequate operating and capital outlays and base salaries and maximum incentive pay for golf course employees by December 31 for the subsequent year. Included in the budget will be the prices for all categories of green fees, driving ranges, leagues, and golf cart rentals. In no event will these prices be reduced unless by agreement of both parties. 3. Permit the use of specialized equipment owned by the City for special projects on the golf course, provided that Hammerschmidt provides adequate advanced notice for scheduling of such equipment. 4. The City shall refer all criticisms, complaints, and suggestions called to the City’s attention regarding The Bridges to Hammerschmidt for study and appropriate action, and Hammerschmidt shall review and investigate such matters and inform the City of the result of such review and investigation and of any recommended remedial action. D. Covenant Not To Compete. During the period when Hammerschmidt is receiving any compensation under this Agreement, Hammerschmidt shall not, without the prior written consent of the City in each instance, whether as shareholder, employee, officer, director, partner, sole proprietor, DRAFT Last Updated: 2/8/2001 CARLSK-129390v10 MU125-33 consultant or otherwise, directly or indirectly engage or participate in any corporation, partnership, limited partnership, sole partnership or other entity competitive to or with The Bridges and located in the following cities: Blaine, Circle Pines, Coon Rapids, Fridley, Lexington, New Brighton, North Oaks, Roseville, St. Anthony, Shoreview and Spring Lake Park. Hammerschmidt acknowledges that the City’s remedy at law may not be adequate in the event of any breach or threatened breach of the terms of this paragraph and hereby consents to the equitable jurisdiction of any appropriate court having jurisdiction of the matter for the entry of injunctive or other equitable relief. ARTICLE V: TERMINATION A. If Hammerschmidt fails to perform any of the terms, conditions, or requirements of this Agreement, the City will give Hammerschmidt thirty days written notice of such failure. After receipt of the written notice, Hammerschmidt will have up to thirty days to correct the problem, except that the City may in any case take immediate steps to correct the problem in order to protect the health, safety and welfare of the City and the public prior to the end of the thirty-day period without affecting the City's right to terminate Hammerschmidt. If Hammerschmidt fails to correct the problem within the thirty-day period, the City may terminate the Agreement by giving Hammerschmidt thirty days written notice of such termination. B. If the City fails to perform any of the terms, conditions, or requirements of this Agreement, Hammerschmidt will give the City thirty days written notice of such failure. After receipt of the written notice, the City will have thirty days to correct the problem. If the City fails to correct the problem within that thirty-day period, Hammerschmidt may terminate the Agreement by giving the City thirty days written notice of such termination. C. In addition to and without limitation under Article V.A. and V.B., gross and intentional failure in performance of any of the terms or conditions of this agreement by City or by Hammerschmidt, shall be deemed good cause for termination by the party wronged. In addition, City shall have the right to terminate this agreement on 30 days’ notice to Hammerschmidt if Hammerschmidt violates any federal, state or local law, rule, resolution or ordinance, or conducts himself publicly or privately in any manner which offends against decency or morality or causes him to be held in public ridicule or scorn or causes a public scandal. ARTICLE VI: OTHER PROVISIONS A. Addresses and Notices. Any notice permitted or required to be given under this Agreement must be in writing and shall be deemed to have been given if sent by certified mail, postage prepaid, addressed as follows: DRAFT Last Updated: 2/8/2001 CARLSK-129390v10 MU125-33 To the City: City Clerk-Administrator City of Mounds View 2401 Highway 10 Mounds View, Minnesota 55112 To Hammerschmidt: John Hammerschmidt _________________________________ _________________________________ If either party has a change of address, that party must give written notice to the other party of such change. Failure to do so will not invalidate any notices sent to the addresses listed above. B. Applicable Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Minnesota. C. Entire Agreement. This Agreement constitutes the entire Agreement between the City and Hammerschmidt with respect to the matters addressed herein. D. Amendment. This Agreement may be modified or amended only with the written approval of the City and Hammerschmidt. E. Construction. In the event that any one or more of the provisions of this Agreement, or any application thereof, shall be found to be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions in any application therefor shall not in any way be affected or impaired thereby. F. Assignment. This Agreement shall be binding upon and inure to the benefit of the parties. No assignment or attempted assignment of this Agreement or any rights hereunder shall be effective. G. Authority. Each of the undersigned parties warrants it has the full authority to execute this Agreement. H. Waiver. No failure by any party to insist upon the strict performance of any covenant, duty, agreement, or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or any other covenant, agreement, term, or condition, nor does it imply that such covenant, agreement, term, or condition may be waived again. I. No Conflict. Hammerschmidt affirms that to the best of his knowledge, his involvement in this Agreement does not result in a conflict of interest with any party or entity that may be affected by the terms of this Agreement. Hammerschmidt agrees that, should any conflict or DRAFT Last Updated: 2/8/2001 CARLSK-129390v10 MU125-33 potential conflict of interest become known to him, he will immediately notify the City of the conflict or potential conflict. J. Personnel and Administrative Handbook in Effect. Unless stated otherwise in this Agreement, the relationship between the City and Hammerschmidt shall be subject to the City’s Personnel and Administrative Handbook. [The remainder of this page is intentionally blank.] DRAFT Last Updated: 2/8/2001 CARLSK-129390v10 MU125-33 This Agreement was executed as of the day and year first above written. CITY OF MOUNDS VIEW By: ________________________________ Richard Sonterre Its: Mayor By: ________________________________ Kathleen Miller Its: City Clerk-Administrator JOHN HAMMERSCHMIDT By: ________________________________ John Hammerschmidt DRAFT Last Updated: 2/8/2001 CARLSK-129390v10 MU125-33 Exhibit A Items Specifically Identified as “Hard Goods” The definition of “hard goods” includes items specifically identified as follows: Shoes, golf spikes, golf bags, golf clubs, packaged golf balls and any items offered for retail sale through The Bridges which have remained unsold in the inventory of The Bridges for a period of time in excess of one (1) year. Unless written permission is received from the Mounds View City Council, no hard goods items are to be sold below cost. DRAFT Last Updated: 2/8/2001 CARLSK-129390v10 MU125-33 Exhibit B Golf Course Manager Job Description [Insert Golf Course Manager Job Description]