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HomeMy WebLinkAbout2015/12/21 - ADMIN - Agenda Packets - City Council - RegularAGENDA DECEMBER 21, 2015 6:30 p.m. SPECIAL STUDY SESSION – Community Room Discussion Items 1. 15 min. Discuss 2016 State of the City (Verbal) 2. 30 min. Draft Resolution – Federal Aviation Administration (FAA) to Recognize Impact of Aircraft Noise in St Louis Park 7:15 p.m. ECONOMIC DEVELOPMENT AUTHORITY -- Council Chambers 1. Call to Order 2. Roll Call 3. Approval of Minutes 3a. Economic Development Authority Meeting Minutes December 7, 2015 4. Approval of Agenda 5. Reports -- None 6. Old Business – None 7. New Business 7a. Submission of a DEED Minnesota Investment Fund Application on Behalf of MoneyGram Recommended Action: The EDA President is asked to open the public hearing, solicit comments and close the public hearing. Motion to Adopt a Resolution of Support for submission of a Minnesota Investment Fund (MIF) application to the Department of Employment and Economic Development (DEED) on behalf of MoneyGram, a St. Louis Park company. 7b. Submission of a DEED Job Creation Fund Application on Behalf of Novu Recommended Action: Motion to Adopt a Resolution of Support for submission of a Job Creation Fund application to the Department of Employment and Economic Development (DEED) on behalf of Novu. 7c. 2016 Final HRA Levy Certification and Budget Adoption Recommended Action: Motion to Adopt EDA Resolution authorizing the proposed levy of a special benefit levy pursuant to Minnesota Statutes Section 469.033, Subdivision 6, and approval of the 2016 Final HRA Levy and Budget for fiscal year 2016. 8. Communications -- None 9. Adjournment Meeting of December 21, 2015 City Council Agenda 7:30 p.m. CITY COUNCIL MEETING – Council Chambers 1. Call to Order 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations -- None 3. Approval of Minutes 3a. City Council Meeting Minutes November 16, 2015 3b. Study Session Meeting Minutes November 23, 2015 3c. City Council Meeting Minutes December 7, 2015 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. The items for the Consent Calendar are listed on the last page of the Agenda. Recommended Action: Motion to approve the Agenda as presented and items listed on the Consent Calendar; and to waive reading of all resolutions and ordinances. (Alternatively: Motion to add or remove items from the agenda, or move items from Consent Calendar to regular agenda for discussion.) 5. Boards and Commissions -- None 6. Public Hearings -- None 7. Requests, Petitions, and Communications from the Public -- None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. 2016 Budget, Final City and HRA Property Tax Levies, and 2016 – 2025 Capital Improvement Plan (CIP) Recommended Action:  Motion to Adopt Resolution approving the 2016 Budgets and 2016 Final Property Tax Levy.  Motion to Adopt Resolution authorizing the 2016 Final HRA Levy.  Motion to Adopt Resolution approving the 2016 - 2025 Capital Improvement Program. 8b. Zero Waste Packaging Ordinance (Second Reading) Recommended Action: Motion to approve second reading of the Zero Waste Packaging Ordinance and authorize publication. 8c. 2016 Employee Compensation Recommended Action: Motion to Adopt Resolution confirming a 2.5% general increase for non-union employees effective 1/1/16; approving the City Manager’s salary for 2016, continuing participation in the Volunteer Firefighter Benefit Program; and increasing performance program pay by 2.5% for Paid-On-Call Firefighters for 2016. Meeting of December 21, 2015 City Council Agenda Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call the Administration Department at 952/924-2525 (TDD 952/924-2518) at least 96 hours in advance of meeting. 8d. 2016 International Association of Firefighters (IAFF) Local #993 Labor Agreement Recommended Action: Motion to Adopt Resolution approving a Labor Agreement between the City and the IAFF Local #993, establishing terms and conditions of employment for one year, from 1/1/16 – 12/31/16. 8e. 2016 - 2017 International Union of Operating Engineers (IUOE) Local #49 (Maintenance) Labor Agreement Recommended Action: Motion to Adopt Resolution approving a Labor Agreement between the City and Local 49 Union, establishing terms and conditions of employment for two years, from 1/1/16 – 12/31/17. 9. Communications -- None Meeting of December 21, 2015 City Council Agenda CONSENT CALENDAR 4a. Approve Amendment No. 1 to the 2015 Contract with Summit Envirosolutions, Inc. for consultant services related to the implementation of the Reilly Tar and Chemical Corporation Remedial Action Plan. 4b. Approve Amendment No. 2 to the 2015 contract with Summit Envirosolutions, Inc. (Summit) for consultant services related to the implementation of the Reilly Tar & Chemical Corporation (Reilly) Remedial Action Plan (RAP). 4c. Approve authorization for the City Manager to enter into fiber strand and/or conduit lease agreements with other organizations for purposes of promoting economic development in the City of St. Louis Park. 4d. Adopt Resolution authorizing fund equity and operating transfers. 4e. Approve the second reading and Adopt Ordinance amending St. Louis Park City Code Chapter 3, Section 57 to provide for microdistillery cocktail room licenses and microdistillery off-sale licenses and to approve the summary ordinance for publication. 4f. Approve entering into a service agreement with the Hennepin County Department of Corrections for continuing to use their crews from the Sentencing to Service Program (STS Program). 4g. Adopt Resolution authorizing the special assessment for the repair of the sewer service line at 4140 Utica Avenue South, St. Louis Park, MN. P.I.D. 07-028-24-32-0010. 4h. Approve for filing Telecommunication Commission Minutes August 12, 2015. 4i. Approve for filing Telecommunication Commission Minutes September 23, 2015. 4j. Approve for filing Environment & Sustainability Commission Minutes November 4, 2015. St. Louis Park Economic Development Authority and regular City Council meetings are carried live on Civic TV cable channel 17 and replays are frequent; check www.parktv.org for the schedule. The meetings are also streamed live on the internet at www.parktv.org, and saved for Video on Demand replays. The agenda is posted on Fridays on the official city bulletin board in the lobby of City Hall and on the text display on Civic TV cable channel 17. The agenda and full packet are available by noon on Friday on the city’s website. Meeting: Special Study Session Meeting Date: December 21, 2015 Discussion Item EXECUTIVE SUMMARY TITLE: Draft Resolution – Federal Aviation Administration (FAA) to Recognize Impact of Aircraft Noise in St Louis Park RECOMMENDED ACTION: None at this time. Staff desires to discuss with Council taking action regarding aircraft noise concerns in St. Louis Park. POLICY CONSIDERATION: Does Council support a resolution requesting the FAA to develop alternate noise metrics as a step in recognizing and possibly reducing long term noise impacts. SUMMARY: The high frequency of overhead aircraft and resulting noise continue to impact city residents. An increasing number of noise complaints are being filed with the Metropolitan Airports Commission (MAC) and received by city staff. Establishing that a noise problem exists in St. Louis Park is a logical and important first step in pursuing long term reductions in aircraft noise. Contour maps of noise impacts from MSP airport operations currently do not extend into our city. With the FAA announcing a nationwide study on aircraft noise in communities surrounding metropolitan airports, an opportunity exists to take positive action. A draft resolution has been prepared by staff for Council consideration which would request the FAA to: 1) develop an alternate matrix for determining impact of aircraft noise; and 2) extending the contours beyond the current limit to accurately reflect the area of environmental impact. The resulting information must then be considered when developing policies on reducing noise impact through operational changes and quieter aircraft technologies. MAC Commissioner Lisa Peilen has assisted staff in considering options and will be in attendance for the Council discussion. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Discussion Draft Resolution Contour Map Number of Complaints Pattern of Complaints FAA Press Release Prepared by: Brian Hoffman, Director of Inspections Approved by: Tom Harmening, City Manager Special Study Session Meeting of December 21, 2015 (Item No. 2) Page 2 Title: Draft Resolution – Federal Aviation Administration (FAA) to Recognize Impact of Aircraft Noise in SLP DISCUSSION BACKGROUND: The Metropolitan Airports Commission (MAC) consists of Governor appointed members to serve as the policy board for all Twin Cities area airports, including Minneapolis Saint Paul International (MSP). All areas of airport functions including buildings, runways, planning, concessions, and taxi services, are within the scope of the Commission and managed by the MAC Executive Director. The Noise Oversight Committee (NOC) consists of six representatives from the airline industry, five representatives from cities bordering the airport, and one representative selected from the at- large cities. St. Louis Park is part of the seven city at-large group and has been involved since the NOC was formed in 2002. The committee works closely with MAC staff in cooperative efforts to reduce aircraft noise impacts associated with MSP and offers recommendations to the MAC Commissioners. MSP is a public use airport and the FAA regulates the type of local restrictions which can be placed on passenger and cargo operations, including the number of flights, time of flights, type of aircraft, and flight paths. These parameters limit what MAC and other airports can implement to reduce the noise impact on surrounding communities. The primary focus of the FAA relates to managing air traffic and safety. Current aircraft noise monitoring metrics established by the FAA have been in use since the 1980’s. The resulting Day-Night Average Sound Level (DNL) metric contours maps for MSP airport identify only a relatively small area of the Twin Cities as being significantly affected by aircraft noise. Utilized for eligibility in sound mitigation programs of homes, the DNL contours are also referenced in planning future policies on aircraft and operations. The FAA states that in 2012, only 300,000 people nationwide were exposed to significant airport noise. This calculation does not include large populations of communities outside of the current contour maps. During 2013, FAA discussion of possible future changes in runway management with implementation of Area Navigation (RNAV) began raising questions of how aircraft noise would impact certain areas, primarily in cities located northwest of the airport. A draft piece of legislation during the 2014 session for added noise monitoring resulted in MAC developing a Noise Monitoring Study. Temporary noise monitoring equipment was placed in Edina and St. Louis Park during August/September of 2014 to establish a baseline for aircraft noise. Results from the temporary monitoring site near the St. Louis Park Recreation Center clarified a significant number of aircraft noise events exceeded 65 decibels and the two week average aircraft DNL was nearly 55. PRESENT CONSIDERATIONS: The 2014 Noise Contours map (attached) for MSP with the 60 DNL line extends out only to the southeast corner of Lake Harriet. Areas within St. Louis Park experiencing significant aircraft traffic are not identified with the current DNL contours. However, residents being negatively impacted is a concern as aircraft noise complaints reported to MAC and the city continue to rise, including from the northwest corner of the city. Also attached is a report listing the number of complaints reported by city during July 2015 and a map identifying the pattern of complaints per household during the same month. Special Study Session Meeting of December 21, 2015 (Item No. 2) Page 3 Title: Draft Resolution – Federal Aviation Administration (FAA) to Recognize Impact of Aircraft Noise in SLP Council and staff have repeatedly raised the question on what can be done to reduce aircraft noise and the high frequency of flights that city residents must tolerate. The reality of having a major airport nearby with runways aligned over the city means aircraft will be in the sky. An important first step in pursuing solutions is to create increased awareness of the problem. Noise contours are references by agencies and industry during discussion about aircraft noise. Developing a more relevant and encompassing measurement of noise, recognizing the effect on communities surrounding airports, can help set the stage. This is a long term effort to help reduce the environmental impacts. The FAA press release from May 2015 is attached. Very few details, timing, or locations are being shared by FAA to the MAC or NOC, only that most of the study work will be in 2016. This study provides an opportunity time for the city to offer comment for FAA consideration. Staff has prepared a draft resolution (attached) requesting the FAA to develop a method of noise measurement and reporting to accurately reflect the environmental impact of aircraft noise. MAC staff assisted with the many questions on how to accurately convey our intent in language the FAA would relate with. The actions being requested in the resolution are consistent with the general direction of the Quiet Skies Caucus, a group of Congress members intended to raise awareness on the issue of aircraft noise and work to find meaningful solutions to the problem. Representative Keith Ellison is a member of this group. NEXT STEPS: If Council wishes to take action, staff will complete the draft resolution with city attorney review. The resolution will be placed on a Council agenda during January. A series of actions may then be pursued to ensure the gravity of the message is received. These are envisioned to include:  The Resolution would be delivered to FAA administration in Washington DC with a cover letter from the Mayor. Copies to local and Regional FAA offices may be appropriate.  Staff would present the resolution at the next 2016 NOC meeting to inform them of our action. Also asking if the Committee would offer a recommendation to support the city resolution, or possibly draft a similar document for MAC members to consider.  Discuss at the 2016 City Legislative Priorities Council session and direct Lockridge Grindal Nauen P.L.L.P to actively pursue discussion with Congressional Representatives and FAA Officials.  Mayor and Council members attending the NLC conference in Washington DC may have an opportunity to follow up with Congress and FAA staff.     CITY OF ST. LOUIS PARK RESOLUTION NO. 15-____ RESOLUTION REGARDING FEDERAL AVIATION ADMINISTRATION RECOGNITION OF AIRCRAFT NOISE IMPACTS OUTSIDE THE DAY-NIGHT AVERAGE SOUND LEVEL (DNL) 65 DECIBEL THRESHOLD WHEREAS, the City of St. Louis Park is committed to protecting and enhancing the quality of life of its residents; and, WHEREAS, the City of St. Louis Park, while outside of the Federal Aviation Administration’s (FAA) Day-Night Average Sound Level (DNL) 65 decibel threshold, frequently experiences noise from flights arriving to the Minneapolis-St. Paul International Airport (MSP); and, WHEREAS, the City of St. Louis Park seeks to reduce the impacts of aircraft noise on the community; and, WHEREAS, a 2014 noise study by the Metropolitan Airports Commission (MAC) to monitor aircraft noise levels in the City of St. Louis Park for a period of two weeks made the following findings: 1. That 1,413 arriving flights and 188 departing flights registered noise events over 65 decibels; and, 2. The 65 decibel threshold was exceeded for a cumulative total time of 4 hours, 36 minutes and 52 seconds; and, 3. The measured 2-week average aircraft DNL was 54.7 A-weighted decibels; and, WHEREAS, the City of St. Louis Park participates in the At-Large Community membership of the MSP Noise Oversight Committee (NOC), which is a balanced forum for the discussion and evaluation of noise impacts around MSP including the identification, study, and analysis of noise issues; and, WHEREAS, the City of St. Louis Park recognizes that the FAA noise metric for determining noise exposure – the DNL metric – does not convey the magnitude of high single- event noise levels due to the averaging over a 24-hour period and that alternative noise metrics aid in making quantitative assessments for aircraft noise impacts and communicating those impacts to surrounding communities; and, WHEREAS, the NOC’s March 2011 letter to the FAA Performance Based Navigation (PBN) Integration Group for developing a set of noise criteria for PBN flight procedure design at MSP includes a criterion to provide a noise analysis using “other noise metrics that evaluate the time above impact and single event noise impacts along a given [Area Navigation] track at MSP”; and, Special Study Sesssion Meeting of December 21, 2015 (Item No. 2) Title: Draft Resolution – Federal Aviation Administration (FAA) to Recognize Impact of Aircraft Noise in SLP Page 4     WHEREAS, the monthly NOC Technical Advisor’s Report incorporates noise metrics to evaluate single event and threshold noise impacts, such as number of events above decibel thresholds, time above decibel thresholds and top ten maximum sound levels (Lmax); and, WHEREAS, the FAA is currently in the process of surveying residents around many of the largest U.S. airports regarding aircraft noise annoyance levels to take an updated look at its established noise measurement methods; and, WHEREAS, the successful implementation of PBN flight procedures, as part of the FAA’s Next Generation Air Transportation System (NextGen) initiative to modernize the national airspace system, requires engagement with airport operators, communities and other stakeholders to ensure the noise impact from new flight paths are conveyed and minimized. NOW, THEREFORE BE IT RESOLVED, by the City Council that the City of St. Louis Park hereby: 1. Urges the FAA to recognize the impacts of aircraft noise beyond the current federally- established DNL 65 decibel threshold when making policy decisions on the impacts of aircraft noise in communities around U.S. airports and supports the use of alternative noise metrics by the FAA to help quantify aircraft noise impacts; and, 2. Urges the FAA to utilize alternative noise metrics when evaluating noise impacts from new PBN flight procedures and to communicate with stakeholders, including airport operators and communities, to ensure noise impacts are conveyed and minimized. Special Study Sesssion Meeting of December 21, 2015 (Item No. 2) Title: Draft Resolution – Federal Aviation Administration (FAA) to Recognize Impact of Aircraft Noise in SLP Page 5 Special Study Sesssion Meeting of December 21, 2015 (Item No. 2)Title: Draft Resolution – Federal Aviation Administration (FAA) to Recognize Impact of Aircoise in SLP Page 6 Special Study Sesssion Meeting of December 21, 2015 (Item No. 2)Title: Draft Resolution – Federal Aviation Administration (FAA) to Recognize Impact of Aircoise in SLP Page 7 Special Study Sesssion Meeting of December 21, 2015 (Item No. 2)Title: Draft Resolution – Federal Aviation Administration (FAA) to Recognize Impact of Aircoise in SLP Page 8 The following press release was published by the FAA May 2015: WASHINGTON – The U.S. Department of Transportation’s Federal Aviation Administration (FAA) will soon begin work on the next step in a multi-year effort to update the scientific evidence on the relationship between aircraft noise exposure and its effects on communities around airports. “The FAA is sensitive to public concerns about aircraft noise. We understand the interest in expediting this research, and we will complete this work as quickly as possible,” said FAA Administrator Michael Huerta. “This Administration takes its responsibility to be responsive to communities’ concerns over air noise seriously. Our work is intended to give the public an opportunity to provide perspective and viewpoints on a very important issue.” Beginning in the next two to three months, the FAA will contact residents around selected U.S. airports through mail and telephone to survey public perceptions of aviation noise throughout the course of a year. This will be the most comprehensive study using a single noise survey ever undertaken in the United States, polling communities surrounding 20 airports nationwide. To preserve the scientific integrity of the study, the FAA cannot disclose which communities will be polled. The FAA obtained approval from the Office of Management and Budget last week to conduct the survey and hopes to finish gathering data by the end of 2016. The agency will then analyze the results to determine whether to update its methods for determining exposure to noise. The framework for this study was developed through the Airports Cooperative Research Program (ACRP), which is operated by the Transportation Research Board of the National Academies of Sciences. This methodology will be used to determine whether to change the FAA’s current approach, as well as consideration of compatible land uses and justification for federal expenditures for areas that are not compatible with airport noise. Aircraft noise is currently measured on a scale that averages all community noise during a 24-hour period, with a ten-fold penalty on noise that occurs during night and early morning hours. The scientific underpinnings for this measurement, known as the Day-Night Average Sound Level (DNL), were the result of social surveys of transportation noise in the 1970s. In 1981, the FAA established DNL 65 decibels as the guideline at which federal funding is available for soundproofing or other noise mitigation. This method was reaffirmed in studies conducted during the late 1980s and early 1990s. During the ensuing years, aircraft manufacturers incorporated technologies that resulted in dramatically quieter aircraft. However, residents around many of the largest U.S. airports have expressed concerns about aircraft noise associated with the continuing growth of the aviation industry. The FAA is taking an updated look at its approach for measuring noise as part of an ongoing dialogue with stakeholders, including communities and leaders of a number of cities across the nation. If changes are warranted, the FAA will propose revised policy and related guidance and regulations, subject to interagency coordination, as well as public review and comment. Special Study Sesssion Meeting of December 21, 2015 (Item No. 2) Title: Draft Resolution – Federal Aviation Administration (FAA) to Recognize Impact of Aircraft Noise in SLP Page 9 Meeting: Economic Development Authority Meeting Date: December 21, 2015 Minutes: 3a UNOFFICIAL MINUTES ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA DECEMBER 7, 2015 1. Call to Order President Mavity called the meeting to order at 7:20 p.m. Commissioners present: President Anne Mavity, Tim Brausen, Steve Hallfin (arrived at 7:22 p.m.), Jeff Jacobs, Gregg Lindberg, Susan Sanger, and Jake Spano. Commissioners absent: None Staff present: Executive Director (Mr. Harmening), Economic Development Coordinator (Mr. Hunt), Community Development Director (Mr. Locke), Engineer Director (Ms. Heiser), City Clerk (Ms. Kennedy), Fire Chief (Mr. Koering), City Attorney (Mr. Mattick), Controller (Mr. Swanson), Operations and Recreation Director (Ms. Walsh), Senior Planner (Mr. Walther), Communications Specialist (Ms. Pribbenow), and Recording Secretary (Ms. Batra). 2. Roll Call 3. Approval of Minutes 3a. Economic Development Authority Meeting Minutes November 16, 2015 The EDA minutes were approved as presented. 4. Approval of Agenda It was moved by Commissioner Jacobs, seconded by Commissioner Brausen, to approve the EDA minutes as presented. The motion passed 6-0. (Commissioner Hallfin absent.) 5. Reports 5a. Approval of EDA Disbursements It was moved by Commissioner Jacobs, seconded by Commissioner Brausen, to approve the EDA Disbursements. The motion passed 6-0. (Commissioner Hallfin absent.) 6. Old Business - None 7. New Business 7a. Purchase and Redevelopment Contract with 4900 Excelsior Apartments, LLC. Resolution No. 15-32. Economic Development Authority Meeting of December 21, 2015 (Item No. 3a) Page 2 Title: Economic Development Authority Meeting Minutes of December 7, 2015 Mr. Hunt presented the staff report. As discussed at the November 23, 2015, study session, Oppidan Investment Company (Oppidan) would like to transfer its ownership interests in the proposed project, 4900 Excelsior Apartments, LLC, to Weidner Apartment Homes (Weidner). Weidner would assume the project’s redeveloper role. Commissioner Hallfin arrived at 7:22 p.m. Mr. Hunt explained, given that Weidner is considering reducing the number of apartments from 176 to 164 and the prior Purchase and Redevelopment Contract signed on November 16, 2015, has not been executed, legal counsel is suggesting the EDA and Weidner enter into a new Purchase and Redevelopment Contract under the name 4900 Excelsior Apartments, LLC. Mr. Hunt stated the new proposed contract is essentially the same as the contract with Oppidan. The minor proposed revisions to the contract include the change in the name of the redeveloper, the change in the total number of apartments in the project, and a clarification within the lookback section. Mr. Hunt explained, in order for the project to achieve financial feasibility, the EDA agrees to reimburse Weidner for certain qualified site preparation costs up to $2.8 million in pay- as-you-go tax increment generated by the project for a term of approximately 7 years. If the apartments in the project are reduced to 164, the Note would be increased to approximately 7.5 years. Mr. Hunt stated staff is recommending approval of the proposed resolution for the Purchase and Redevelopment Contract between the EDA and 4900 Excelsior Apartments, LLC related to the proposed 4900 Excelsior project. It was moved by Commissioner Spano, seconded by Commissioner Jacobs, to adopt EDA Resolution No. 15-32, approving the Purchase and Redevelopment Contract with 4900 Excelsior Apartments, LLC. – Please double-check the Commissioners that made the motion and second. Commissioner Brausen stated he supports the proposed resolution. Commissioner Sanger stated she does not object to the transfer to Weidner; however, she will vote no on the proposed resolution because she does not agree with the proposed project. The motion passed 6-1. (Commissioner Sanger opposed.) 8. Communications - None 9. Adjournment The meeting adjourned at 7:24 p.m. ______________________________________ ______________________________________ Secretary President Meeting: Economic Development Authority Meeting Date: December 21, 2015 Public Hearing Agenda Item: 7a EXECUTIVE SUMMARY TITLE: Submission of a DEED Minnesota Investment Fund Application on Behalf of MoneyGram RECOMMENDED ACTION: The EDA President is asked to open the public hearing, solicit comments and close the public hearing. Motion to Adopt a Resolution of Support for submission of a Minnesota Investment Fund (MIF) application to the Department of Employment and Economic Development (DEED) on behalf of MoneyGram, a St. Louis Park company. POLICY CONSIDERATION: Does the EDA support the submittal of an application to the Department of Employment and Economic Development’s (DEED) Minnesota Investment Fund on behalf of MoneyGram to facilitate its expansion in the city? SUMMARY: During 2015, MoneyGram invested $7.7 million on an expansion of its local operations at The West End that included equipment upgrades and office improvements. The company increased its office operations in another state and had the opportunity to move its St. Louis Park office there. However, it was MoneyGram’s preference to make upgrades at its St. Louis Park office. The expansion will result the creation of 86 new jobs in St. Louis Park over the next two years (48 full time). The wages of over two thirds of the new full time positions are projected to be between $60-$77 hourly including benefits and the remaining are projected between $33-$36 hourly. The average hourly wage is estimated at $53 per hour plus benefits. MoneyGram’s expansion is eligible for the Minnesota Investment Fund (MIF) program administered by DEED. MIF was created to provide financing to help add new workers and retain high-quality jobs on a statewide basis. To receive MIF funds, businesses must coordinate with the local government to complete an application. If approved, DEED awards the business a forgivable loan that requires the business to maintain their proposed job levels for three years. The EDA would work with MoneyGram to monitor the number of jobs created and would be responsible for submitting annual reports to DEED for two-five years. A Public Hearing and Resolution of Support from the EDA are required as part of the MIF application. FINANCIAL OR BUDGET CONSIDERATION: None, there is no local matching fund requirement for the Minnesota Investment Funds application. The company is applying for a MIF forgivable loan award of $500,000. If awarded, loan funds would be directed to the EDA which would then disburse the funds to MoneyGram. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: Discussion Resolution Prepared by: Julie Grove, Economic Development Specialist Reviewed by: Greg Hunt, Economic Development Coordinator Michele Schnitker, Housing Supervisor/Deputy CD Director Approved by: Tom Harmening, Executive Director Economic Development Authority Meeting of December 21, 2015 (Item No. 7a) Page 2 Title: Submission of a DEED Minnesota Investment Fund Application on Behalf of MoneyGram DISCUSSION BACKGROUND: The MIF loan program provides financing to create and retain high-quality jobs in Minnesota, with an emphasis on manufacturing, technology and professional service employment. Through this program, administered by DEED, funds are awarded to local units of government and then provided as a loan to the business. Typically loans are used to finan ce construction or renovation improvements and equipment necessary to support the expanding business. Funds are intended to be used in situations in which alternative sources of public and private financing are not adequate. Between July 2013 to June 20115, DEED has awarded $19 million to 42 companies in Minnesota. Those companies plan to invest more than $577 million to expand their facilities and have committed to creating more than 2,766 new full-time jobs. Some of the businesses that have benefited from MIF include: Arctic Cat, Toro, Renewal by Anderson, Shutterfly and Polaris. PROPOSED APPLICATION: MoneyGram is one of St. Louis Park’s largest employers. In early 2015, the company’s board approved capital expenditures to expand its St. Louis Park operations. While MoneyGram has office operations nationwide and in Europe, the company’s preference was to make upgrades at its St. Louis Park office. The goal is to have the upgrades finished in early 2016. Upon completion, the company expects to expend over $7.7 million in equipment upgrades and office improvements. The expansion is proposed to result in the creation of 86 higher wage professional jobs in St. Louis Park over the next two years. The average salary level is $100,000. To assist with some of these expenses, MoneyGram has applied for a forgivable MIF loan, a portion of which will pay for working capital. If awarded St. Louis Park will enter into a loan agreement with MoneyGram and DEED will provide the EDA with MIF grant funds. The EDA will then distribute these funds as a loan to MoneyGram. As a requirement of the loan MoneyGram must create and retain its proposed number of jobs (86) within two years and maintain the job level for three additional years. This timeframe is negotiated between DEED and MoneyGram. The EDA will submit annual progress reports to DEED for at least two years, and potentially up to five. If MoneyGram does not meet its job goals, DEED will work with the company and as a last resort the loan will have to be repaid on a prorated basis. Economic Development Authority Meeting of December 21, 2015 (Item No. 7a) Page 3 Title: Submission of a DEED Minnesota Investment Fund Application on Behalf of MoneyGram RESOLUTION NO. 15-____ RESOLUTION IN SUPPORT OF A BUSINESS APPLYING TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT’S MINNESOTA INVESTMENT FUND PROGRAM WHEREAS, the St. Louis Park Economic Development Authority, Minnesota, desires to assist MoneyGram which is proposing to expand its facilities in the city of St. Louis Park; and; WHEREAS, the St. Louis Park Economic Development Authority, Minnesota, will act as the legal sponsor for the project contained in the Minnesota Investment Fund Application to be submitted on or about December 31, 2015 and; WHEREAS, the St. Louis Park Economic Development Authority has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to administer the proposed project, and; WHEREAS, the St. Louis Park Economic Development Authority has not violated any Federal, State, or local laws pertaining to fraud, bribery, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice, and; WHEREAS, that upon approval of its application by the State, the St. Louis Park Economic Development Authority may enter into a Grant Contract with the State of Minnesota for the approved project, and that the St. Louis Park Economic Development Authority certifies that it will comply with all applicable laws, statutes, regulations and rules as stated in the Grant Contract and described in the Project Compliance Certification of the Application. NOW, THEREFORE, BE IT RESOLVED that, EDA President and Executive Director Minnesota, are hereby authorized to execute the Grant Contract and amendments, thereto, as are necessary to implement the project on behalf of the St. Louis Park Economic Development Authority. Reviewed for Administration: Adopted by the Economic Development Authority, December 21, 2015 Executive Director President Attest: Secretary Meeting: Economic Development Authority Meeting Date: December 21, 2015 Action Agenda Item: 7b EXECUTIVE SUMMARY TITLE: Submission of a DEED Job Creation Fund Application on Behalf of Novu RECOMMENDED ACTION: Motion to Adopt a Resolution of Support for submission of a Job Creation Fund application to the Department of Employment and Economic Development (DEED) on behalf of Novu. POLICY CONSIDERATION: Does the EDA support the submittal of an application to the Department of Employment and Economic Development’s (DEED) Job Creation Fund by Novu, a St. Louis Park company to facilitate its expansion in the city? SUMMARY: St. Louis Park based-Novu was formed in 2011. The fast growing consumer engagement company works with health insurers to encourage patients to use online-and-offline measures to pursue healthy lifestyles. Novu has grown significantly over the last year, increasing its employment by more than 64% between January and November 2015. As such, the company is outgrowing its current office space and is proposing to expand its operations at the Parkdales office park in St. Louis Park. The expansion is proposed to add 60-90 new jobs over the next three-five years. The wages of approximately a third of the new positions are projected to be between $28-$50 hourly including benefits and two thirds are projected between $53-$100 hourly. The average wage at the company is $53.80. The company’s proposed job expansion is eligible for the Minnesota Job Creation Fund (JCF) program administered by DEED. If awarded, funds will be used to help pay for a portion of the newly created jobs. The JCF was created to encourage job growth and capital investments by companies choosing to expand their operations in Minnesota. Companies deemed eligible to participate may receive a financial award for creating or retaining high-paying jobs and for constructing or renovating facilities. The JCF application requires the local government to provide a resolution in support of the business expansion. If approved, DEED drafts a business subsidy agreement with the company specifying the required job creation and capital investment goals. St. Louis Park would assist the company with the submittal of required annual progress reports. FINANCIAL OR BUDGET CONSIDERATION: None, there is no local matching fund requirement for the Jobs Creation Fund application. The company is applying for a Job Creation award of approximately $450,000. If awarded, the funds will be disbursed directly to Novu upon verification of the jobs created. SUPPORTING DOCUMENTS: Discussion Resolution Prepared by: Julie Grove, Economic Development Specialist Reviewed by: Greg Hunt, Economic Development Coordinator Michele Schnitker, Housing Supervisor/Deputy CD Director Approved by: Tom Harmening, Executive Director Economic Development Authority Meeting of December 21, 2015 (Item No. 7b) Page 2 Title: Submission of a DEED Job Creation Fund Application on Behalf of Novu DISCUSSION BACKGROUND: Launched in January 2014, the Minnesota Job Creation Fund is a pay-for- performance program that provides as much as $1 million to businesses for creating or retaining high-paying jobs and for constructing or renovating facilities or making other property improvements. Businesses must create at least 10 full-time jobs and invest at least $500,000 to receive any state money. Administered by DEED, this program is anticipated to create an estimated 5,000 new jobs statewide and attract another $450 million of private investment into Minnesota’s growing economy. To date, DEED has awarded $21 million to 42 companies in Minnesota since the Job Creation Fund was launched in January 2014. Those companies plan to invest more than $459 million to expand their facilities and have committed to creating more than 2,465 new full-time jobs. Some of the metro area cities to have companies awarded JCF funds include Minneapolis, Chaska, Brooklyn Park, Lakeville, Shakopee, and New Brighton. The program is available to businesses engaged in manufacturing, warehousing, distribution, technology and other eligible activities. Companies must work with the local government (city, county or township) where a project is located to apply to DEED to receive designation as a Job Creation Fund business. Companies that meet eligibility requirements must sign a business subsidy agreement with DEED to meet job retention, creation, wage, and capital investment requirements. The following benefits may be available once a business meets the conditions of its agreement and provides proof of performance:  $1000 per year per job created for jobs paying at least $26,335 in cash wages  $2000 per year per job created for jobs paying at least $35,450 in cash wages  $3000 per year per job created for jobs paying at least $45,579 in cash wages  Up to a 5 percent rebate for real property improvements for businesses located in the Twin Cities Metro PROPOSED APPLICATION: Novu is a fast-growing company that is retained by health insurers and providers to help patients take control of their health. The firm empowers consumers to use online and offline prevention and wellness activities. After forming in 2011, Novu has grown significantly. Over the last year, its staff has increased by 64% and has outgrown its current office space. The company requires space to grow and plans to position itself for anticipated exponential growth. Currently located in the West End Office tower, Novu is finalizing the details of leasing a larger space in the Parkdale offices. Novu has a strong preference to start construction on new space by January 15. This allows them to be in the new space in May. The expansion is projected to result in the creation of 60 higher wage professional jobs in St. Louis Park over the next three years, and up to 90 total over the next five years. To assist with the creation of these jobs, Novu has applied for approximately $450,000 in funding from the JCF program. For the past several weeks, the company has been in consultation with DEED, as a result, it has been determined that its expansion plans meet the minimum JCF program requirements. Per JCF program requirements a resolution in support of the JCF application from the local government must also be submitted. Economic Development Authority Meeting of December 21, 2015 (Item No. 7b) Page 3 Title: Submission of a DEED Job Creation Fund Application on Behalf of Novu If the application is approved, DEED will formally designate the business as a JCF business and determine a job creation award. DEED also enters into a business subsidy agreement with the JCF business. Funds would be distributed to Novu one year after the creation of the agreed to number of jobs. St. Louis Park staff would be asked to assist the company with the submission of required annual progress reports to DEED. Economic Development Authority Meeting of December 21, 2015 (Item No. 7b) Page 4 Title: Submission of a DEED Job Creation Fund Application on Behalf of Novu RESOLUTION NO. 15-____ RESOLUTION IN SUPPORT OF NOVU APPLYING TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT’S JOB CREATION FUND PROGRAM WHEREAS, the St. Louis Park Economic Development Authority, Minnesota, desires to assist Novu which is proposing to expand its facilities in the city of St. Louis Park; and, WHEREAS, the St. Louis Park Economic Development Authority understands that Novu, through and with the support of the City of St. Louis Park, intends to submit to the Minnesota Department of Employment and Economic Development (DEED) an application for an award and/or rebate from the Job Creation Fund (JCF) program; and, WHEREAS, the JCF funds will be used for equipment and office upgrades resulting in the creation of additional jobs in the city of St. Louis Park; and, WHEREAS, DEED’s JCF Program Guidelines require support by the governing body of the St. Louis Park Economic Development Authority for submission of the JCF application; and NOW, THEREFORE, BE IT RESOLVED that, EDA President and Executive Director Minnesota, hereby express their approval of the project proposed by Novu and its application for an award and/or rebate from the Job Creation Fund Program. Reviewed for Administration: Adopted by the Economic Development Authority, December 21, 2015 Executive Director President Attest: Secretary Meeting: Economic Development Authority Meeting Date: December 21, 2015 Action Agenda Item: 7c EXECUTIVE SUMMARY TITLE: 2016 Final HRA Levy Certification and Budget Adoption RECOMMENDED ACTION: Motion to Adopt EDA Resolution authorizing the proposed levy of a special benefit levy pursuant to Minnesota Statutes Section 469.033, Subdivision 6, and approval of the 2016 Final HRA Levy and Budget for fiscal year 2016. POLICY CONSIDERATION: Does the City Council desire to levy the full 2016 HRA Levy allowed of $1,011,208 which is an increase of $57,970 or approximately 6.08% over the 2015 Final HRA Levy? SUMMARY: This levy was originally implemented in St. Louis Park due to legislative changes in 2001 which significantly reduced future tax increment revenues. The City Council elected at that time to use the levy proceeds for future infrastructure improvements in redevelopment areas. Thus far, some of the HRA Levy proceeds have been used to fund infrastructure studies, analyses for future improvement projects and to pay for the City’s share of Highway 7 and Louisiana. By law, these funds could also be used for other housing and redevelopment purposes, but they are committed to funding Highway 7 and Louisiana until 2021 based on the current Long Range Financial Management Plan. Given the significant infrastructure needs facing the City in the future, staff recommends the HRA Levy continue at the maximum allowed by law for the 2016 budget year. The HRA Levy cannot exceed 0.0185% of the estimated market value of the City. Therefore, staff has calculated the maximum HRA Levy for 2016 to be $1,011,208 based on valuation data from Hennepin County. This is an increase of $57,970 or 6.08% from 2015. The EDA is allowed to authorize the HRA levy and then forward this recommendation to the City Council. Council action is required before certification, which i s also scheduled to occur on December 21, 2015. FINANCIAL OR BUDGET CONSIDERATION: The proposed levy will help support infrastructure in redevelopment areas and possible affordable housing initiatives. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: EDA Resolution 2016 HRA Levy Final Budget Prepared by: Brian A. Swanson, Controller Reviewed by: Nancy Deno, EDA Deputy Executive Director/Deputy City Manager Approved by: Tom Harmening, EDA Executive Director and City Manager Economic Development Authority Meeting of December 21, 2015 (Item No. 7c) Page 2 Title: 2016 Final HRA Levy Certification and Budget Adoption ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 15-____ AUTHORIZING THE FINAL LEVY OF A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND APPROVAL OF A FINAL BUDGET FOR FISCAL YEAR 2016 WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.108 (the “EDA Act”), the City Council of the City of St. Louis Park created the St. Louis Park Economic Development Authority (the "Authority"); and WHEREAS, pursuant to the EDA Act, the City Council granted to the Authority all of the powers and duties of a housing and redevelopment authority under the provisions of the Minnesota Statutes, sections 469.001 to 469.047 (the "HRA Act"); and WHEREAS, Section 469.033, Subdivision 6, of the HRA Act permits the Authority to levy and collect a special benefit levy of up to .0185 percent of estimated market value in the City upon all taxable real property within the City; and WHEREAS, the Authority desires to levy a special benefit levy in the amount of up to .0185 percent of estimated market value in the City for taxes payable in 2016; and WHEREAS, pursuant to Minnesota Statutes, Section 275.065, the Authority is required to adopt a proposed budget and a proposed tax levy and submit the same to the County Auditor by December 29; and WHEREAS, the Authority has before it for its consideration a copy of a proposed budget for its operations for the fiscal year 2016 and the amount of the proposed levy for collection in 2016 shall be based on this budget and the long range financial management plan, subject to any adjustments in the budget as finally approved prior to certification of the final special benefit levy. NOW THEREFORE, be it resolved by the Board of Commissioners of the St. Louis Park Economic Development Authority: 1. The proposed budget for the operations of the Authority in fiscal year 2016, as presented for consideration by the City Council, is hereby in all respects approved, subject to final approval by the Authority before certification of the tax levy under Minnesota Statutes, Section 275.07. 2. Staff of the Authority are hereby authorized and directed to file the proposed budget with the City in accordance with Minnesota Statutes, Section 469.033, Subdivision 6. 3. The proposed special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, is hereby approved in a maximum amount equal to .0185 percent of estimated market value in City of St. Louis Park, currently estimated to be $5,465,988,900 with respect to taxes payable in calendar year 2016, subject to final approval by the Authority before certification of the special benefit levy pursuant to Minnesota Statutes, Section 275.07. Economic Development Authority Meeting of December 21, 2015 (Item No. 7c) Page 3 Title: 2016 Final HRA Levy Certification and Budget Adoption 4. Staff of the Authority are hereby authorized and directed to seek the approval by resolution of the City Council of the levy of special benefit taxes payable in 2016 and to take such other actions as are necessary to bring before the Board the final budget and levy to be sent to the county auditor on or before five working days after December 20, 2015. Reviewed for Administration Adopted by the Economic Development Authority December 21, 2015 Executive Director President Attest: Secretary Economic Development Authority Meeting of December 21, 2015 (Item No. 7c) Page 4 Title: 2016 Final HRA Levy Certification and Budget Adoption HRA Levy 2016 Adopted Budget December 21, 2015 2014 2015 2016 Actual Revised Budget Proposed Budget Revenues: Property Tax Levy 927,094$ 953,238$ 1,011,208$ Market Value Homestead Credit - - - Interest Income 10,464 401 219 Transfer In from Development Fund 4,472,545 - - Total Revenue 5,410,103$ 953,639$ 1,011,427$ Expenditures: Infrastructure Projects 7,505,435$ -$ -$ Services and Other Charges 15,832 15,574 16,041 Transfer Out to Development Fund 950,000 950,000 Total Expenditures 7,521,267$ 965,574$ 966,041$ Beginning Fund Balance 2,134,066$ 22,902$ 10,967$ Net Change in Fund Balance (2,111,164)$ (11,935)$ 45,386$ Ending Fund Balance 22,902$ 10,967$ 56,353$ Meeting: City Council Meeting Date: December 21, 2015 Minutes: 3a UNOFFICIAL MINUTES CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA NOVEMBER 16, 2015 1. Call to Order Mayor Pro Tem Lindberg called the meeting to order at 7:43 p.m. Councilmembers present: Mayor Pro Tem Gregg Lindberg, Tim Brausen, Anne Mavity, Susan Sanger, and Jake Spano. Councilmembers absent: Mayor Jeff Jacobs and Councilmember Steve Hallfin. Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Mattick), Economic Development Coordinator (Mr. Hunt), Community Development Director (Mr. Locke), City Clerk (Ms. Kennedy), Senior Planner (Mr. Walther), Director of Operations and Recreation (Ms. Walsh), Rec Center Manager (Mr. Eisold), Civic TV Coordinator (Mr. Dunlap), Engineering Director (Ms. Heiser), Communications Specialist (Ms. Pribbenow), and Recording Secretary (Ms. Staple). Guests: None. 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations 2a. Recognition of Donations Mayor Pro Tem Lindberg recognized the estate of Alice Trainer for two donations, each in the amount of $43,920, the first for improvements to Lamplighter Park and the second for the Fire Department to be used at their discretion. Mr. Harmening stated that it is not often that the City receives a donation in the amount of $88,000. Mr. and Mrs. Trainer lived in St. Louis Park for many years, near the area of 16th and Pennsylvania, and spent a lot of time in Lamplighter Park and therefore donated those funds to improve that park. He stated that staff is unsure of the improvements that will be made but will find a way to recognize the Trainers. He stated that Mrs. Trainer had a few interactions with the Fire Department for emergency medical services and was very appreciative of the services she received from the Department. For that reason, she chose to donate funds to the Fire Department. Mayor Pro Tem Lindberg thanked the Trainer estate for the generous donations. He recognized Jane and Michael Wipf in the amount of $200 for natural resources and forestry supplies; Leslie Marcus in the amount of $100 for Westwood Nature Center programming costs; and St. Louis Park Kiwanis in the amount of $50 for the Westwood Nature Center Halloween party. City Council Meeting of December 21, 2015 (Item No. 3a) Page 2 Title: City Council Meeting Minutes of November 16, 2015 3. Approval of Minutes 3a. Study Session Minutes October 26, 2015 The minutes were approved as presented. 3b. Special Study Session Minutes November 2, 2015 Councilmember Sanger requested a correction on page 5, to delete the last sentence in the 7th paragraph: Councilmember Sanger supported additional study and public outreach on a fee-based bag program. The minutes were approved as amended. 3c. City Council Meeting Minutes November 2, 2015 The minutes were approved as presented. 3d. Special Study Session Minutes November 2, 2015 The minutes were approved as presented. 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. 4a. Approve second reading Adopt Ordinance No. 2482-15 granting a non-exclusive Cable TV franchise to CenturyLink. 4b. Adopt Resolution No. 15-173 authorizing the award of the 2016 Arts and Culture Grants. . 4c. Approve implementing an option to the Water Meter Program. 4d. Adopt Resolution No. 15-174 authorizing submittal of state bonding requests. 4e. Adopt Resolution No. 15-175 Authorizing Execution of a Renewed Lease with the State of Minnesota Department of Transportation (Mn/DOT) for Webster Park. 4f. Approve a one-year extension for the Conditional Use Permit (CUP) for NLD 394 LLC (Resolution 14-168) to construct a new Kia Automotive Dealership. 4g. Adopt Resolution No. 15-176 amending the Rules and Procedures for Boards and Commissions updating Section I: Annual Meeting with Council Program. 4h.  Adopt Resolution No. 15-177 approving the First Amendment to the Contract for Private Redevelopment with Cedar Lake Road Apartments, LLC.  Adopt Resolution No. 15-178 approving Partial Assignment and Assumption of Redevelopment Contract between the Redeveloper and Lake West Development. City Council Meeting of December 21, 2015 (Item No. 3a) Page 3 Title: City Council Meeting Minutes of November 16, 2015 4i. Adopt Resolution No. 15-179 authorizing installation of permit parking restrictions at 3145 Idaho Avenue South. 4j. Adopt Resolution No. 15-180 approving acceptance of a monetary donation from the Estate of Alice Trainer in the amount of $43,920.00 for improvements to Lamplighter Park and $43,920.00 to the Fire Department for use at their discretion. 4k. Adopt Resolution No. 15-181 supporting and approving a Hennepin County Environmental Response Fund Grant Application submitted by Perspectives Inc. for activities pertaining to clean-up of contaminated soil located at 7008 Walker Street. 4l. Adopt Resolution No. 15-182 approving acceptance of a monetary donation from Jane and Michael Wipf in the amount of $200 for Natural Resources/Forestry supplies. 4m. Adopt Resolution No. 15-183 approving acceptance of a monetary donation from: Leslie Marcus in the amount of $100 and St. Louis Park Golden Kiwanis in the amount of $50 for Westwood Hills Nature Center. Mr. Harmening referenced Agenda Item 8a, 4900 Excelsior - Final Plat and Final Planned Unit Development (PUD) (First Reading) and advised that the developer has asked that action not be taken tonight and instead be considered at the December 7th meeting. It was moved by Councilmember Mavity, seconded by Councilmember Spano, to remove Item 8A, 4900 Excelsior - Final Plat and Final Planned Unit Development (PUD) (First Reading) from the agenda. The motion passed 5-0 (Mayor Jacobs and Councilmember Hallfin absent). It was moved by Councilmember Brausen, seconded by Councilmember Mavity, to approve the Agenda as amended and items listed on the Consent Calendar; and to waive reading of all resolutions and ordinances. The motion passed 5-0 (Mayor Jacobs and Councilmember Hallfin absent). 5. Boards and Commissions - None 6. Public Hearings 6a. Off-Sale Intoxicating Liquor License – M.D. Liquors Ms. Kennedy presented the staff report and request of M.D. Liquors2, Inc., dba M.D. Liquors, located at 8942 Highway 7, for an Off-Sale Intoxicating Liquor License. If approved, the license term would be through March 1, 2016. She stated that the current license holder is selling the business to the new applicant and noted that a full background investigation was conducted on the applicant and nothing was discovered that would warrant denial of the license. Mayor Pro Tem Lindberg opened the public hearing. No speakers were present. Mayor Pro Tem Lindberg closed the public hearing. City Council Meeting of December 21, 2015 (Item No. 3a) Page 4 Title: City Council Meeting Minutes of November 16, 2015 It was moved by Councilmember Spano, seconded by Councilmember Brausen, to approve Off-Sale Intoxicating Liquor License for M.D. Liquors2, Inc. dba M.D. Liquors, located at 8942 Highway 7, for the license term through March 1, 2016. The motion passed 5-0 (Mayor Jacobs and Councilmember Hallfin absent). 6b. Off-Sale Intoxicating Liquor License Name Change – Top Ten Liquors Ms. Kennedy presented the staff report and request for a name change for the Off-Sale Intoxicating Liquor License held by Yayin Gadol, LLC, from Liquor Barrel to Top Ten Liquors for the premises at 5111 Excelsior Boulevard. If approved, the license term would be through March 1, 2016. She explained that the existing license holder would simply like to change the name of the business and therefore no additional investigation was needed. Mayor Pro Tem Lindberg opened the public hearing. No speakers were present. Mayor Pro Tem Lindberg closed the public hearing. It was moved by Councilmember Mavity, seconded by Councilmember Brausen, to approve a name change for the off-sale intoxicating liquor license held by Yayin Gadol, LLC. from Liquor Barrel to Top Ten Liquors for the premises located at 5111 Excelsior Boulevard, for the license term through March 1, 2016. The motion passed 5-0 (Mayor Jacobs and Councilmember Hallfin absent). Councilmember Mavity stated the Council just completed a year-long discussion regarding the moratorium on new off-sale liquor licenses. She noted she was disappointed at where the discussion ended, which was to make no changes. She stated she did not think that additional licenses were needed in some areas of the City, such as along Excelsior, and wanted to make sure the public understood that the resolution of the moratorium was that no changes would be made to the current liquor license policy. She believed that guided constraints could have been added. 6c. Public Hearing - Establishment of 4900 Excelsior Tax Increment Financing District. Resolution No. 15-184 and Resolution No. 15-185. Mr. Hunt presented the staff report regarding the establishment of the 4900 Excelsior Tax Increment Financing District (TIF). He stated that staff had nothing further to add to the comments made at the EDA meeting earlier. Mayor Pro Tem Lindberg opened the public hearing. Denise Davis, 4820 Park Commons Drive, stated that her building will be directly impacted by this project. She stated that she would like to find another creative use for the property, but understood that the City needs to make some money from the property. She expressed concern over the traffic issues, as the traffic is currently intolerable and this will add 176 apartments to the area. She stated that while it would be great if people used mass transit, most people do not and additional vehicles will add traffic to the roadways. She also expressed concern with pedestrian safety. She wished that more City Council Meeting of December 21, 2015 (Item No. 3a) Page 5 Title: City Council Meeting Minutes of November 16, 2015 consideration was given to the height and size of the building and the number of apartments as well to those that live in that area. Rita Wagner, 4820 Park Commons Drive, stated that she is beginning to see some good from developing in that area such as more support for the businesses in that area. She was not sure how truck traffic would access the site. She asked that more consideration be given to the traffic problem on Quinton. Marge Sur, 4820 Park Commons Drive, stated that she is mainly concerned with the street. She stated that she does not drive and rides the bus and is concerned with the activities that will have to be handled by Quinton. She stated that there are a number of people in her building that use the bus for transit. Eleanor Martin, 4820 Park Commons Drive, objected to the number of parking spaces for the proposed building. She opined there is already a pedestrian safety issue when crossing Excelsior, and this will add more traffic to the neighborhood. Mayor Pro Tem Lindberg closed the public hearing. Councilmember Mavity stated she appreciated the comments expressed tonight and noted that a more robust discussion will occur in terms of the design and PUD at the December meeting. She stated that she has brought forward the traffic issues, specifically along Quinton, through study sessions as well. It was moved by Councilmember Mavity, seconded by Councilmember Brausen, to Adopt Resolution No. 15-184 approving the elimination of parcels from the Park Commons Redevelopment Tax Increment Financing District (Hennepin County TIF District No. 1308), within Redevelopment Project No. 1, in the City of St. Louis Park). The motion passed 4-1(Councilmember Sanger opposed) (Mayor Jacobs and Councilmember Hallfin absent). Councilmember Sanger stated she expressed her objections to this project during the EDA meeting, specifically in regard to parking, lack of green space and building size. She noted she does support redevelopment of the parcel, but would like to see a more neighborhood friendly scale development. It was moved by Councilmember Mavity, seconded by Councilmember Brausen, to Adopt Resolution No. 15-185 approving the establishment of 4900 Excelsior Tax Increment Financing District within Redevelopment Project No. 1 (a redevelopment district). The motion passed 4-1(Councilmember Sanger opposed) (Mayor Jacobs and Councilmember Hallfin absent). Councilmember Mavity again noted that there will be a more robust discussion at the December 7th meeting when the design and PUD are considered. 7. Requests, Petitions, and Communications from the Public -- None 8. Resolutions, Ordinances, Motions and Discussion Items City Council Meeting of December 21, 2015 (Item No. 3a) Page 6 Title: City Council Meeting Minutes of November 16, 2015 8a. 4900 Excelsior - Final Plat and Final Planned Unit Development (PUD) (First Reading). This agenda item was removed from the agenda and postponed to December 7, 2015. 8b. Westside Center (Former Novartis Site) - Preliminary Plat, Final Plat and Conditional Use Permit. Resolution No. 15-186 and Resolution No. 15-187. Mr. Walther presented the staff report regarding a request for Westside Center for a Preliminary Plat, Final Plat and Conditional Use Permit. He identified the project area and explained that the applicant began multi-tenant improvements to the building in 2014 and in 2015 FEMA established the floodplain elevation for this site. He stated that this site previously did not have an elevation and a model was created using the Atlas 14 data, which was reviewed by multiple agencies. He stated that there were two wetlands on the property that were impacted by the development. He noted that on June 1, 2015 phase II of the project was approved by the Council for an expansion of impervious surface for parking, outdoor storage, and a building addition. He noted that as part of that plan a storm water pond was created. He provided background information on Phase II of the project, noting that phone calls from residents had been received once construction began and the City held neighborhood meetings in response. Mr. Walther noted that proper notification was mailed to properties within 350 feet of the property prior to the public hearings for that project. He stated that Minnehaha Creek Watershed also sent notifications to neighbors within 600 feet of the site as part of their public hearing notification permitting process. He stated that the City has made some changes to the templates used for mailed notices regarding public hearings, including the addition of maps, to provide additional clarification to residents. He advised that notification is also posted on the website and in a local paper, as well as a sign posting on the property. He stated that the developer also hosted the neighbors to hold an informational meeting to share their development plans. He advised of additional meetings between the City and residents to provide additional information throughout this process, which he believed have responded to all the questions that the residents had. Mr. Walther stated that the current request for Phase III would include a lot split and proposed fill that would be hauled to the site to further expand the parking lot. He stated that in reference to the lot split, there is a variance request to allow no drainage and utility easement on the common lot line. He noted that a park dedication fee would be collected on Lot 2 following the lot split. He advised that Lot 2 would benefit from a shared parking easement with Lot 1 and stated that there would be common access points between the sites for emergency services. He stated that these agreements were reviewed and approved by the City Attorney. He referenced the Conditional Use Permit, which would be used to import fill to the property to construct the parking area, and provided additional details on the amount of fill that would be used. The fill included fill within the floodplain, and compensating flood storage was provided elsewhere on the site. He provided additional details on the landscaping and tree replacement plan. He provided details on the hauling that would occur for the site including hours of operation and routes. Mr. Walther highlighted the comments that were received during the October 13th neighborhood meeting. He stated that the Planning Commission held a public hearing on City Council Meeting of December 21, 2015 (Item No. 3a) Page 7 Title: City Council Meeting Minutes of November 16, 2015 October 21st and summarized the comments received at that meeting. He reviewed the major findings from the staff report and Planning Commission noting that the proposed fill does not cause a flood stage increase and does not endanger life or property; compensating flood storage meets City Code requirements; and the proposed fill and parking lot expansion is consistent with zoning code requirements. He highlighted benefits of the constructed storm water pond on the site. He stated that the Planning Commission and staff recommend approval of the proposed actions, subject to the conditions listed in the staff report. Councilmember Brausen referenced the floodplain designation and received clarification that would be in regard to a 100-year flood event, noting the storm water pond would increase the space for flood water storage. Alison Riley, 2837 Ottawa, asked about the proposed businesses that would go into the site and if they would need that much parking. Mr. Walther stated that some of the largest existing tenants include LRS, Zerorez, and Fish Guys. He noted that there are a number of other tenants as well. He stated that the applicant believes that amount of parking would be needed based on the employment of the businesses at the site and noted that the City parking formulas also support that amount of parking. Councilmember Spano stated that there was discussion of Metro Transit and bus service to this site, but accessing the site from a bus standpoint would be difficult and therefore there is not a bus running to the site and an alternative is not available. It was moved by Councilmember Sanger, seconded by Councilmember Brausen, to Adopt Resolution No. 15-186 Approving the Preliminary and Final Plat of “Westside Center Izzie Addition”, subject to conditions. Councilmember Sanger stated that she will be supporting this motion but not without trepidation. She stated that the various experts have stated that what is proposed here will not make the current flooding situation worse, which might be as much as the City can expect here. She stated that the City is aware of the flooding problem in that area. She was pleased and relieved that neighbors met with the Minnehaha Creek Watershed District the previous week at which time they were able to gain additional information. The motion passed 5-0 (Mayor Jacobs and Councilmember Hallfin absent). It was moved by Councilmember Sanger, seconded by Councilmember Spano, to Adopt Resolution No. 15-187 Approving a Conditional Use Permit to import fill material and for fill within the floodplain, subject to conditions. Councilmember Mavity referenced the challenges for access to this site and asked if there is a proposed connection across the rails for pedestrians and bikes to go north. Mr. Walther stated that the short answer is yes, the City’s pedestrian and bicycle system plan identified this area as a search corridor for future connections to the regional trail and an overpass of the railroad tracks, but the location and timing of those improvements are uncertain. The motion passed 5-0 (Mayor Jacobs and Councilmember Hallfin absent). City Council Meeting of December 21, 2015 (Item No. 3a) Page 8 Title: City Council Meeting Minutes of November 16, 2015 8c. CenturyLink Cable Franchise Findings of Fact. Resolution No. 15-188. Mr. Dunlap presented the staff report and stated that he was present to answer any questions, noting that this item provided the background information for the Ordinance that was adopted as part of the Consent Agenda. It was moved by Councilmember Sanger, seconded by Councilmember Mavity, to the Findings of Fact and Resolution regarding an ordinance granting a competitive cable franchise for Qwest Broadband Services, Inc. D/B/A CenturyLink. Councilmember Sanger stated that this will set the stage for another provider for cable television and internet service to come to the City. The motion passed 5-0 (Mayor Jacobs and Councilmember Hallfin absent). 8d. Bid Tabulation: Reject Bids for the Outdoor Ice Rink Site Work and Grading Project Mr. Eisold presented the staff report and recommendation to reject the bids for the outdoor ice rink site work and grading project, noting that these were the only bids received and they were higher than staff anticipated due to the soil corrections needed onsite. He stated that this would also allow the City to apply for grant funds to assist in the soil corrections needed. He stated that staff would bring back a new bid project in February, which would include any grant funds received. Councilmember Mavity asked what would happen if the City is not successful in obtaining grant funds. Ms. Walsh stated that the City has looked at value engineering options, grants have been applied for, and the entire project will be rebid in December and January. Councilmember Spano referenced the schedule and asked what that will do to the project schedule, whether that will simply be a two month delay or a season delay. Mr. Eisold stated that this would still remain within the project schedule to be completed for next season. Ms. Walsh stated that earlier there had been some grading proposed for fall with some months of little to no activity and advised that extra time will allow for this adjustment in the schedule. It was moved by Councilmember Mavity, seconded by Councilmember Brausen, to reject bids for the Outdoor Ice Rink Site Work and Grading Project and authorize re- advertisement for bids. The motion passed 5-0 (Mayor Jacobs and Councilmember Hallfin absent). 8e. Traffic Study No. 659: All Way Stop Signs on Ottawa Avenue at 29th Street. Resolution No. 15-189. Ms. Heiser presented the staff report regarding a petition received for the installation of stop signs on Ottawa at 29th Street. She stated that routinely the Traffic Control City Council Meeting of December 21, 2015 (Item No. 3a) Page 9 Title: City Council Meeting Minutes of November 16, 2015 Committee reviews requests on a monthly basis against guidelines, policies and standards. She stated that the criteria were not met and the Committee therefore recommended that the additional stop signs not be installed. She noted that in those instances the residents have the option to present the request to the City Council if a petition is received by 70 percent of the residents within 600 feet, and advised that the City did receive such a petition. Anita Kolman, 2855 Ottawa Avenue, stated she had circulated the petition in the neighborhood and the reception of the neighborhood was overwhelmingly supportive, not only from Ottawa and 29th but other intersections. She stated that no one that answered their door refused to sign the petition and she stopped door knocking once she received the necessary amount of signatures. She stated that people not only agreed to sign the petition but also made comments about the excessive speed of those traveling on Ottawa. She stated that the neighborhood wants and needs the stop signs and urged the Council to support the request. Allison Riley, 2837 Ottawa, stated she has two small children who have friends across the street and there is a lot of traffic that uses the roadway, especially with the construction. She worries about the safety of her children when crossing the roadway and believed that the stop signs would help increase awareness of the drivers. Jill Barber, 2840 Ottawa, stated there are no sidewalks so it is dangerous. Councilmember Mavity asked if the neighborhood also supports sidewalks. Ms. Kolman stated that would be a separate issue. She clarified that on Ottawa there are sidewalks on both sides of the street and noted that sidewalks do not deter the speed of drivers. Ms. Riley stated the bus stop for her children is on 29th and it makes her nervous for her children to cross the street especially without sidewalks. Dean Halverson, 2815 Ottawa, asked what other traffic calming items had been looked at as there was a petition 10 to 15 years ago, that was not approved. He stated the speed of traffic is quite fast. Ms. Heiser stated she would speak with Mr. Halverson after the meeting to provide additional options. Michael Schoff, 2809 Ottawa, agreed that the stop signs would assist in slowing the speed of traffic. He noted there is a great amount of traffic because of the two schools in the area and the added vehicles that take the road because of the construction. Marvin Marshak, 2855 Ottawa, stated although the engineering study states the traffic volumes do not meet the criteria, he believed the engineering department would agree that the roadway handles a lot of traffic. He stated the traffic is not going to a destination in the neighborhood but cutting through to get to another location. He noted a significant number of vehicles are exceeding the speed limit. Mr. Marshak provided a list to staff that identified 15 other comparable intersections that have all-way stops. He noted a process has been identified for residents to request the stop sign and encouraged the Council to support the stop sign. Councilmember Sanger stated she lives in this area and was very supportive of the request. She stated the work that City staff has done to talk about the volume of cars tend City Council Meeting of December 21, 2015 (Item No. 3a) Page 10 Title: City Council Meeting Minutes of November 16, 2015 to understate the problem. She noted as the school year goes on, more students turn 16 and traffic increases through the neighborhood. There is a significant amount of pedestrians in the neighborhood, as well, and for the reasons identified, she would support the request. It was moved by Councilmember Sanger, seconded by Councilmember Brausen, to Adopt Resolution No. 15-189 authorizing installation of stop signs on Ottawa Avenue at 29th Street. Councilmember Mavity cautioned that just because there is a stop sign, it does not mean everyone will stop or that the area will be entirely safe for pedestrians. She asked residents to stay vigilant. The motion passed 5-0. (Mayor Jacobs and Councilmember Hallfin absent). 9. Communications – None 10. Adjournment The meeting adjourned at 9:00 p.m. ______________________________________ ______________________________________ Melissa Kennedy, City Clerk Gregg Lindberg, Mayor Pro Tem Meeting: City Council Meeting Date: December 21, 2015 Minutes: 3b UNOFFICIAL MINUTES CITY COUNCIL STUDY SESSION ST. LOUIS PARK, MINNESOTA NOVEMBER 23, 2015 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Jeff Jacobs, Tim Brausen, Gregg Lindberg, Anne Mavity, and Susan Sanger. Councilmembers absent: Steve Hallfin and Jake Spano. Staff present: City Manager (Mr. Harmening), Director of Operations and Recreation (Ms. Walsh), Engineering Director (Ms. Heiser), Economic Development Specialist (Ms. Grove), Planner (Mr. Kelley), Assistant Zoning Administrator (Mr. Morrison), City Assessor (Mr. Bultema), Operations Manager (Mr. Stevens), Communications Specialist (Ms. Pribbenow), and Recording Secretary (Ms. Batra). Guest: Susan Schneck, Founding Member of FOTA, and George Hagemann, FOTA Board Member. 1. Future Study Session Agenda Planning – December 14, 2015 Mr. Harmening presented the proposed Study Session agenda for December 14, 2015. He stated there is no meeting next week because it is the fifth Monday of the month. Regarding the City’s participation in a 2016 initiative on race and equity, (agenda number 5), Councilmember Mavity stated the City can sign up online, and pointed out there are two options. Also, the schedule for the initiative starts in January. Councilmember Sanger suggested a new potential zoning code change. Mayor Jacobs stated he would prefer to discuss this when the Council arrives at the agenda item. 2. Friends of the Arts (FOTA) Annual Update Ms. Schneck presented the staff report. She used a visual aid to summarize the Arts’ Foundation in the City, which was also presented at the Town Hall meeting. Ms. Schneck stated the economic impact study was a great opportunity for FOTA to connect and put together data and share information between themselves. She stated the study also set the stage to open communications with the community and was a great learning experience. She stated that significant growth has been seen in FOTA for 2015. Ms. Schneck stated she has noticed the strength of the community-based arts groups in the community. These small administrations use the FOTA’s tax ID number because they have the same mission, which permits them to share a tax return with FOTA. This enables FOTA to work on partnering and growth within the community. Councilmember Mavity expressed appreciation for the FOTA, and stated, in her opinion, that the organization elevates the whole community. She asked about budgeting. Mr. Harmening clarified that the City reduced the amount given to the FOTA from $20,000 to $16,000 six years ago due to the recession. Councilmember Mavity suggested the City increase the contribution to FOTA back to $20,000. City Council Meeting of December 21, 2015 (Item No. 3b) Page 2 Title: Study Session Minutes of November 23, 2015 Councilmember Sanger commented that she appreciates the work that has been done with FOTA. She asked about whether any thought had been given to include the two major art forms not addressed by the FOTA, which are dance and public architecture. Ms. Schneck stated that adding those is on the radar. Ms. Schneck explained the business plan needs to be evaluated, because holding an event every other year is a difficult model to use, as organizations that fund projects on an annual basis do not consider it annual so every year funding must be reevaluated. When considering staffing and funding, more staff would be needed to make the event yearly. She opined that businesses and organizations will be more likely to fund the event if it is held yearly. Councilmember Brausen commented that he appreciates everything the FOTA does for the community. He asked if any public officials serve on the organization’s Board, as he would be interested. Ms. Schneck stated the organization speaks with public officials in more of an advisory role. Councilmember Brausen volunteered for the FOTA’s Board, and asked for clarification on budgeting. Ms. Schneck stated that the organization brings in approximately $45-55,000/year since the City’s funding was established and in 2013, revenue went up to $66,000. She explained that last year Our Town was successful, but staffing and income was not sufficient. This year, however, FOTA has brought in $51,000, with the hope to raise it to $60,000 by year’s end. Councilmember Brausen expressed a desire to increase the City’s contribution by at least $10,000 or consider a funding match scenario. He explained that he wants the arts to grow because it benefits the entire community. Mayor Jacobs agreed to the proposal for the City to raise the amount of the funding contribution to FOTA. It was the consensus of the City Council to consider an increase in funding to FOTA. 3. Potential Zoning Code Amendments / Enhancements Mr. Walther presented the staff report and referenced the information related to Zoning Code topics including small business support tools, parking lot lighting, bee-friendly landscaping, and tree preservation on single-family lots. Mr. Walther explained that Council has brought these issues up in the last few months and now staff is looking for more specific direction from the Council on the topics presented. Councilmember Mavity stated she appreciates the background and comparison with other communities regarding the small business support tools. She inquired about sexually explicit businesses and asked why they are permitted to open in neighborhoods, specifically C-1, when the City is attempting to focus on a neighborhood approach. Mr. Walther explained there are two kinds of sexually explicit businesses, low impact and high impact. Mr. Walther explained that the definition gets very detailed. Mr. Harmening explained that in the mid ‘90’s, the City drafted an ordinance relating to sexually oriented businesses because challenges had been made in other cities and the City did not have sufficient regulation. An ordinance was then created to meet the legal and constitutional test and direct the businesses that could be located in the City. He explained the businesses cannot be banned, but could be regulated; however, the ordinance had to stand up in the court of law. He stated there was a lot of time and thought put into the ordinance. City Council Meeting of December 21, 2015 (Item No. 3b) Page 3 Title: Study Session Minutes of November 23, 2015 Councilmember Sanger stated the City received a lot of legal guidance on the issues, and she does not believe that the sexually explicit businesses are necessarily causing a problem. Councilmember Mavity stated the City needs to ensure that sufficient support and incentives are provided to the local businesses. Councilmember Mavity stressed the City does not want businesses that are out of character from these neighborhood nodes. Councilmember Sanger stated she is willing to reconsider changes in parking. She explained she interviewed a small business owner to see if there is something else that needs to be mentioned. During that interview, three ideas were mentioned. First, placing an ad for a local business to find local help costs about $450; therefore, it would be beneficial if the City would have a page on the website for small businesses to advertise for employment. Second, parking is an issue, as one cannot assume people can walk when they are local because the item could be heavy. It was suggested to limit the parking to 30 minutes so more people can shop at the business. The third idea is the difficulty raising capital to purchase a warehouse in the City and the possibility of looking for assistance or a program. Councilmember Brausen stated he would like to repurpose old buildings in the City. Ms. Grove stated that the City has applied for a grant in the Walker Street area, and the City is working with property owners and businesses. Councilmember Mavity asked if the City has the tools to reduce parking beyond what is listed. Mr. Walther mentioned that if the development requires a conditional use permit or planned unit development (PUD), the code allows parking requirements to be adjusted through that public hearing process. Otherwise, it would require a variance. Councilmember Mavity asked for clarification on what can be done beyond a PUD. She expressed her desire to continue to think about and support parking reductions, as she believes that the use of cars is going to change in the future. Councilmember Sanger mentioned that parking depends on the business and she does not think it should be generalized, but should be considered individually instead. Councilmember Mavity stated she does not think it would be a blanket approach, and would consider a parking reduction where it’s appropriate. Councilmember Sanger asked, if parking is reduced, what then happens when a property is turned over to another business. Councilmember Mavity stated she believes that the City will not need as much parking in the future. Councilmember Brausen asked if the City has a business ombudsman. Ms. Grove stated that she helps fill that role and points out resources. Mayor Jacobs introduced the next topic, parking lot lighting. Councilmember Brausen proposed all lights and 75% of the parking lot be turned off within 1-2 hours closing. Councilmember Sanger agreed with Councilmember Brausen; however, for safety and security, if the parking lot is being used, she believes the lights should remain on. Councilmember Lindberg expressed balancing the need to conserve energy with the safety, security, and the needs of the business’ operations are important. He also stated that regulation may not be the best or only approach. Mr. Harmening stated the Police Department would be interested in this topic and should weigh in on this issue. He asked how interested the Council is, because the City would need to work with the business community and discuss it with them, and then there’s always enforcement to consider. Mr. Harmening stated, from an emergency perspective, some lights are necessary. Councilmembers Lindberg, Jacobs and Mavity expressed City Council Meeting of December 21, 2015 (Item No. 3b) Page 4 Title: Study Session Minutes of November 23, 2015 their caution about this proposal. The Council further discussed the topic and decided it was not a pressing issue at this time. Mayor Jacobs introduced the next topic, bee-friendly landscaping. Councilmember Mavity commented that State law prohibited the City from being more aggressive on this issue and until it is a priority at the State level, it should not be a priority for the City. Mayor Jacobs introduced the next topic, tree preservation on single-family lots. Councilmember Sanger stated she appreciates the suggestion to address areas in new developments, because then the City would have some oversight in the process. Councilmember Mavity stated she does not agree because she believes it’s a private homeowner issue and the City does not have any say on the issue. Councilmember Sanger disagreed as she felt trees impact the entire City and explained if the City had regulations, developers would think before they clear-cut. She felt regulating tree preservation was similar to building codes. Councilmember Lindberg stated that he thinks it would be prohibiting single-family homes from ‘building up’ their houses, and does not think that it’s viable. He explained he is also nervous about a negative impact. Councilmember Sanger clarified she wasn’t talking about the replacement of the trees, but preserving the existing trees. Councilmember Brausen expressed that a homeowner should be able do whatever they desire to their property, but would agree to a tree replacement policy. Councilmember Lindberg stated he doesn’t believe that it will work, will be too expensive, and will deviate from what the City is asking homeowners to do. Councilmember Mavity stated that a tree preservation policy would be too hard to implement. Mayor Jacobs clarified that staff shouldn’t spend more time on this topic. Councilmember Sanger presented a potential zoning issue. She stated that, as she understands it, part of the redevelopment to accommodate Lyman Lumber was for outdoor storage. She explained this particular outdoor storage is a much more active use of the land with trucks going back and forth, forklifts making noise, and an active outdoor factory. However, the City still classifies the area as outdoor storage. Councilmember Sanger proposed the City split outdoor storage into two classifications, passive use and active use. Mr. Harmening explained making that distinction would be difficult to define. Councilmember Sanger suggested the proximity to residential areas could be part of the criteria for evaluation. Mr. Walther mentioned that Lyman Lumber is 350 feet from residences and agreed it is a higher activity level. Councilmember Mavity asked if Lyman Lumber is following the noise ordinance. Mr. Walther confirmed that Lyman Lumber is complying with code. Lyman Lumber is allowed to operate from 6am-10pm and normal business activity would not fall outside of the noise ordinance. Councilmember Mavity stated she would be more inclined to deal with that particular issue than consider a citywide regulation. She asked that as these uses come forward for approval in the future, staff address that concern and make the Council aware. Mayor Jacobs stated he did not hear a consensus to direct staff to look into this regulation. City Council Meeting of December 21, 2015 (Item No. 3b) Page 5 Title: Study Session Minutes of November 23, 2015 4. Assessment Policy Discussion – Continued Ms. Heiser noted this is a continued discussion from the November 9, 2015, Study Session. She presented the staff report relating to the assessment policy and reviewed the basics of assessments as also stated in the November 9 Study Session. Ms. Heiser presented a slide regarding paving, curb, and gutter. The City has 146 miles of streets and Ms. Heiser presented a pie chart to show how the City’s roadway network is broken down and their associated funding sources. She explained the existing franchise fee CIP and the level of funding spent on different types of maintenance to extend the life of the residential streets. Ms. Heiser explained that the overall condition of the streets are inventoried on an annual basis and rated on a scale of 1 to 100. These ratings are reviewed by the Pavement Management Team to determine the annual CIP. Ms. Heiser stated the pavement condition of the unimproved streets and the streets where the land use is predominantly commercial/ industrial is deteriorating. She further explained that the current policy for commercial/ industrial streets is petition driven and the rehabilitation costs are assessed 100% to adjacent property owners; the City has not completed a rehabilitation project on this category of streets in over 10 years. Ms. Heiser provided the staff’s recommendation to take a proactive approach to maintenance on both commercial/ industrial streets and unimproved streets in order to maintain the overall condition of the City’s street infrastructure. She presented information regarding the additional infrastructure replacement costs for the one mile of Unimproved Streets, estimated cost $1,422,494, and Commercial/ Industrial Street Rehabilitation, about $500,000 annually. She went on to explain potential funding mechanisms to proceed with the work, including assessments. Mr. Harmening explained that benefit needs to be shown in order to assess. With commercial/industrial, it may be difficult to show the benefit for assessing 100% of the cost. Councilmember Sanger stated that her understanding is that commercial use results in more wear and tear to the roads. She does not agree with assessments on streets because streets are for everyone’s benefit and the traveling public. Mr. Harmening clarified that when these streets were initially constructed, someone paid for it. Basically, the property owners paid for those streets, which is true for most properties in the City. Councilmember Lindberg stated that he thinks the City should improve the unimproved streets as it is best practice and makes sense. He stated his concern in looking at the proposed assessment policy is that although the averages look better, the costs are shifting from larger frontage lots to shorter frontage lots; therefore, the smaller lots pay a higher share. Councilmember Lindberg stated that the model is good from a policy perspective and asked how the funding structure can be finessed. Councilmember Brausen stated that he doesn’t think the unimproved streets need to be improved due to the high cost of $1.4 million. Councilmember Mavity clarified that it is actually more cost effective because it would reduce operating costs. Ms. Heiser clarified there are some drainage issues and potholes on the unimproved streets, and a ‘band aid’ approach is used to mitigate the issues to prevent damage to vehicles, but no more. These potholes form because the road is not built with adequate structure to support the traffic loads. Mr. Harmening clarified that the Council needs to decide whether to use the special assessment tool. If not, the Council will have to work the cost into the budget. Councilmember Mavity stated City Council Meeting of December 21, 2015 (Item No. 3b) Page 6 Title: Study Session Minutes of November 23, 2015 she agreed with the assessment tool for streets, but not necessarily for sidewalks. Councilmember Mavity expressed she is comfortable with staff’s recommendation and thinks the City should proceed with the proposed plan. Councilmember Sanger stated she does not agree with assessments for roads or sidewalks, but can see the argument on alleys. She opined roads and sidewalks are for the public benefit. Mayor Jacobs stated his agreement with Councilmember Sanger and believes that the City will receive push back if the assessment tool is used. Mr. Harmening clarified that it’s only the one mile of unimproved streets in the City that would be assessed. Councilmembers Mavity and Sanger and Mayor Jacobs stated they agree that alleys are the exception when discussing assessments. Ms. Heiser explained, using a slide, what the overall additional infrastructure costs would be without using the assessment tool. She mentioned that assessments, as proposed in the new policy, could fund approximately half of the estimated cost. The Council and staff discussed the differences in the cost if unimproved streets were assessed, funded by franchise fees, or funded through a levy increase. Mr. Harmening introduced the topic of unimproved alleys. Mayor Jacobs and Councilmembers Mavity and Sanger stated they could support assessing 50% on alleyways. Councilmember Sanger stated the current formula is a deterrent because if the residence doesn’t have a garage, no benefit is received. Councilmember Lindberg stated that formula is not agreeable to him, as alleyways are part of the infrastructure the City is providing and maintaining. Councilmember Mavity stated there is no perfect answer on this issue. Mr. Harmening asked, excluding the formula, can the Council agree on an assessment for alleys. Councilmembers Mavity and Sanger and Mayor Jacobs indicated their support. Ms. Heiser clarified the Council has decided to not use the assessment tool for residential streets, and to use the assessment tool for alleys. In response to Councilmember Lindberg’s request, Ms. Heiser displayed a slide detailing the location of unimproved alleys. The Council discussed the pricing and how to build in the cost over time regarding alleys. Using the ‘Existing CIP’ slide, Ms. Heiser discussed the existing and forecasted funding. It was the consensus of the City Council to explore funding options for streets, use the assessment tool for alleys and discuss sidewalks at a later date. 5. Highway 169 – W. 16th Street Access Closure (West Side) Mr. Harmening stated Mn/DOT is requesting municipal consent to close the W. 16th Street access and there will be a hearing on December 7, 2015. She noted staff wanted to provide the Council with an update because it was possible that a number of people may attend the hearing to express their opinions on the proposed closure. Mayor Jacobs stated there is mixed feedback from residents on the issue. Councilmember Mavity stated there is also a cost issue. Councilmember Brausen stated that both sides are equally supported and it’s a safety issue. Mn/Dot wants to close the access, but needs municipal consent because the closure is associated with a larger construction project. Mr. Harmening explained that visual barriers will be built and Mn/DOT will pay for them. Ms. Heiser explained why Mn/DOT is seeking municipal consent as Mn/DOT has a project to complete; however, Mn/DOT stated it could close the access at any time if there were a serious accident resulting in a fatality. Mayor Jacobs, and Councilmembers Brausen, Mavity, and Sanger stated their support of the closure. Mr. Harmening raised the option of asking for a noise wall instead of a visual barrier. City Council Meeting of December 21, 2015 (Item No. 3b) Page 7 Title: Study Session Minutes of November 23, 2015 It was the consensus of the City Council to support the closure of the W. 16 th Street access to Highway 169 and to ask Mn/DOT whether the visual barrier could be upgraded to a noise wall. 6. 4900 Excelsior Project Update Mr. Hunt presented the staff report and indicated Oppidan Investment Company (Oppidan) plans to sell the 4900 Excelsior project to Weidner Apartment Homes (Weidner) and has requested that the EDA consider providing consent to the assignment of the just-approved Purchase and Redevelopment Contract. Weidner is not making any programmatic changes and staff is comfortable with the transfer. Mr. Hunt explained that Weidner is constantly on the lookout for purchase opportunities and approached Oppidan regarding this project. He added the City has had a good relationship with Weidner via the Sienna Apartment project. Staff anticipated the project would ultimately be sold once it was constructed and reached stabilization. Councilmember Mavity clarified that the only change would be the owner; therefore, the City would not incur any additional financial burden. Mr. Hunt responded that staff requested an updated proforma reflecting the change in ownership and what ramifications it may have on financing the project. He noted no additional TIF had been requested. If there is no significant reduction in the project’s financial gap, the EDA could simply consent to an assignment of the project from Oppidan to Weidner. Councilmember Sanger questioned if Weidner would remain the owner for the long-term operation. Mr. Hunt responded in the affirmative, noting that Weidner would be the long-term owner and operator, looking at this from a 40-year perspective. In response to Councilmember Mavity’s question, Mr. Hunt suggested the City meet with Weidner to discuss expectations with inspections, project management, and working with the neighbors, to ensure construction goes smoothly. Mr. Hunt clarified that Weidner wants to close on the property themselves. He stated that if the proforma comes back and it’s not agreeable, the City can revisit the TIF number and enter into a new agreement with Weidner. Mr. Hunt indicated staff is working with legal counsel and Ehlers to determine the financial implications of the proposed assignment, if any, and if the financial terms within the Purchase and Redevelopment Contract need to be revisited. It was the consensus of the City Council to consent to the assignment if that is the direction recommended by staff. 7. 2016 City Council Workshop Mayor Jacobs stated that he will not attend the City Council Workshop. He stated that, in his opinion, the relationships that allow the Council to hold discussions in a rational way is the most important thing to discuss at the Workshop. He stated that the Council trusts each other, and, with the upcoming membership changes, he hopes this trust can be preserved. Councilmember Lindberg recommended that Bridget Gothberg attend and spend Thursday or Friday with the Council. Councilmember Sanger suggested it would be useful to hear from Mayor Elect Spano about his style, how he operates, and what his expectations are. City Council Meeting of December 21, 2015 (Item No. 3b) Page 8 Title: Study Session Minutes of November 23, 2015 Councilmember Mavity expressed concerns about recent actions that Councilmember Sanger undertook to undermine the City’s recent grant request to the Met Council despite the fact the Council approved making the grant application. Councilmember Mavity suggested that the issue of Council norms should be discussed, outlining the written and unwritten. She also stated that she agrees that it is important to do the personality test. Councilmember Elect Miller will meet with Ms. Gothberg and complete the personality test as everyone else did when they started the Council. Councilmember Lindberg agreed with the importance of the norms conversation, which can also be facilitated by Ms. Gothberg. Mr. Harmening would like to address the five goals that were set last year, and have a conversation around that to make sure those are still on track, which would leave time for another topic, open for suggestion, on Friday. Councilmember Brausen asked to revisit the 2025 goals and incorporate a racial equity component into those goals. Councilmember Sanger stated another goal is the big picture on the City’s aging physical infrastructure and how to keep the community updated, fresh, and in good physical shape. Councilmembers Mavity and Brausen mentioned that something similar had been discussed at last year’s retreat. Mr. Harmening would like to merge the visioning plan with the Comp Plan. The new Comp Plan is due is in 2018. Councilmember Lindberg stated it helps the Council incorporate all areas. It was noted that Councilmember Elect Miller has that experience from the last election while knocking on doors to gather votes and meeting residents, which could be valuable when considering the Plan. Councilmember Brausen would like to discuss zero waste because it’s a pressing issue to review and think about where the City should go and what the cost will be. Councilmember Mavity agreed with the sentiment but thought the City should plan more than the retreat to discuss that topic. Mr. Harmening stated the City’s long-term financial standing is a hot topic; as well as SWLRT and development around the station location; aging infrastructure; and neighborhoods. Mayor Jacobs stated to find a topic, he likes the idea of sending out a survey to ask for their top three big picture topics so staff has a broad-based plan in place in what it should be working on. The Councilmembers Spano, Lindberg, and Sanger will work with staff to develop the Workshop agenda. Communications/Meeting Check-In (Verbal) Councilmember Sanger commented on zero waste packaging and asked how the Council plans to classify a restaurant where you can do both, takeout and dine in. She stated the Council needs to clarify this because a lot of restaurants fall under both requirements. Councilmember Mavity noted the exemption for providing on-site disposal is only for restaurants that do not offer a dine-in facility. Mr. Harmening stated staff will review that language. Councilmember Brausen stated he does not understand why utensils are being exempt when compostable utensils are readily available. It was noted that businesses will be required to provide recycling. City Council Meeting of December 21, 2015 (Item No. 3b) Page 9 Title: Study Session Minutes of November 23, 2015 Councilmember Lindgren asked if the Council is willing to explore some type of assistance for small businesses. Mr. Harmening stated staff will check with the County to see if that assistance is available. Councilmember Sanger stated the Council has already discussed providing education and information about alternatives as well as a long lead-time before the regulation becomes effective. The Study Session scheduled for December 28 will be cancelled. The meeting adjourned at 9:34 p.m. Written Reports provided and documented for recording purposes only: 8. October 2015 Monthly Financial Report 9. Updated Zero Waste Packaging Ordinance ______________________________________ ______________________________________ Melissa Kennedy, City Clerk Gregg Lindberg, Mayor Pro Tem Meeting: City Council Meeting Date: December 21, 2015 Minutes: 3c UNOFFICIAL MINUTES CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA DECEMBER 7, 2015 1. Call to Order Mayor Jacobs called the meeting to order at 7:30 p.m. Councilmembers present: Mayor Jeff Jacobs, Tim Brausen, Steve Hallfin, Gregg Lindberg, Anne Mavity, Susan Sanger, and Jake Spano. Councilmembers absent: None. Staff present: Solid Waste Program Coordinator (Ms. Fisher), Executive Director (Mr. Harmening), Economic Development Coordinator (Mr. Hunt), Community Development Director (Mr. Locke), Engineer Director (Ms. Heiser), City Clerk (Ms. Kennedy), Fire Chief (Mr. Koering), City Attorney (Mr. Mattick), Senior Engineering Project Manager (Mr. Shamla), Controller (Mr. Swanson), Operations and Recreation Director (Ms. Walsh), Senior Planner (Mr. Walther), Communications Specialist (Ms. Pribbenow), and Recording Secretary (Ms. Batra). Guests: John Easter (American Chemistry Counsel), Dave Kluesner (International Paper), Andrew Lutaya (MnDOT), Dan McElroy (Minnesota Restaurant Association and Minnesota Lodging Association), Deb McMillian (Twin West Chamber of Commerce), Phil Olson (City of Minnetonka), and Annmarie Treglia (DART Container Corporation). 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations 2a. Introduction of New Community Emergency Response Team Members (CERT) Mr. Koering announced that 15 new members were added to the City’s CERT team. With the inaugural class of 9 community members, sworn in last year, the new additions brought the team’s total to 24 community members. The City’s goal was to increase the team to 40 community members. The CERT team is working on certifying trainers internally to enable the City to train their own CERT members. Mr. Koering explained that the City’s firefighters are very supportive of the CERT program. The Fire Department and the CERT community members will work together to partner during emergency situations. Mr. Koering explained that Ms. Kennedy swore in the CERT members prior to the Council meeting. All CERT members were called to the front to be recognized for their role in the community. City Council Meeting of December 21, 2015 (Item No. 3c) Page 2 Title: City Council Meeting Minutes of December 7, 2015 2b. Recognition of Donations Mayor Jacobs recognized Solo Dock for their $100 donation. 3. Approval of Minutes 3a. Special City Council Meeting Minutes November 9, 2015 The minutes were approved as presented. 3b. Study Session Meeting Minutes November 9, 2015 Councilmember Lindberg requested a correction on Pages 2 and 4 of the minutes to correct the misspelling of his name. 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. 4a. Accept for filing City Disbursement Claims for the period of October 24, 2015 through November 27, 2015. 4b. Adopt Resolution No. 15-190 authorizing Worker’s Compensation insurance renewal effective December 1, 2015 and ongoing. 4c. Adopt the amendment to the agreement with the St. Louis Park Hockey Association for its contribution to the construction of an outdoor refrigerated ice rink. 4d. Adopt Resolution No. 15-191 accepting work and authorizing final payment in the amount of $13,595.70 for the annual Sanitary Sewer Mainline Rehabilitation Project with Insituform Technologies USA, LLC. - Project No. 4014-3003, City Contract No. 36-15. 4e. Adopt Resolution No. 15-192 accepting work and authorizing final payment in the amount of $20,552.71 for the annual Street Sealcoat Project with Pearson Brothers Inc. - Project No. 4015-1200, City Contract No. 51-15. 4f. Adopt Resolution No. 15-196 authorizing final payment in the amount of $9,906.18 for the annual Concrete Replacement Project with Standard Sidewalk, Inc. - Project No. 4014-0003, City Contract No. 103-14. 4g. Moved to 8c. 4h. Adopt Resolution No. 15-193 approving acceptance of a monetary donation from Solo Dock Company in Wayzata in the amount of $100 for Cobblecrest Neighborhood Association. City Council Meeting of December 21, 2015 (Item No. 3c) Page 3 Title: City Council Meeting Minutes of December 7, 2015 4i. Moved to 8d. 4j. Approve for filing Environment & Sustainability Commission Minutes October 7, 2015. Councilmember Brausen requested that Consent Calendar item 4g be removed and placed on the Regular Agenda to 8c. Councilmember Spano requested that Consent Calendar item 4i be removed and placed on the Regular Agenda to 8d. It was moved by Councilmember Mavity, seconded by Councilmember Lindberg, to approve the Agenda and items listed on the Consent Calendar as amended to move Consent Calendar item 4g to the Regular Agenda as item 8c and Consent Calendar item 4i to the Regular Agenda as item 8d; and to waive reading of all resolutions and ordinances. The motion passed 7-0. 5. Boards and Commissions - None 6. Public Hearings 6a. Public Hearing – Highway 169 – W. 16th Street Access Closure (West Side). Resolution No. 15-194. Joe Shamla introduced the staff report. Andrew Lutaya with MnDOT presented the topic to the Council. He thanked the Council for the City’s assistance in designing the improvements to Highway 169. He reviewed the list of proposed improvements to Highway 169, including a pavement preservation project that will replace deteriorated concrete from Highway 62 to Highway 55; the 9-Mile Creek bridge replacement; the extension of the acceleration and deceleration lanes by Cedar Lake Road; and, the 16th Street access closure. Mr. Lutaya explained MnDOT is proposing the 16th Street access closure to be in compliance with the program, Minnesota Toward Zero Deaths’ initiative. The program was started in southeast Minnesota in 2003 as a pilot program and has been instituted in the metro region since 2012. Since this program has been started, there has been a 45% decrease in fatalities. According to MnDOT, closing the 16th Street access would be proactive because it’s a substandard interchange access that doesn’t allow enough acceleration. Mr. Lutaya explained that concrete curb and gutter would be added to replace the access. A visual barrier, which does provide similar acoustical noise benefits to those of a noise wall, is included in the proposed 16th Street access closure. He noted the guidelines for a noise wall and a visual barrier were different, but the materials and benefits would be the same. City Council Meeting of December 21, 2015 (Item No. 3c) Page 4 Title: City Council Meeting Minutes of December 7, 2015 Mr. Lutaya stated to close the access point, municipal consent must be given. However, if there was a fatality on the 16th Street access, MnDOT could close the ramp without municipal consent. Mr. Lutaya explained alternative routes for access to Highway 169 have been reviewed in anticipation of the closure. The longest distance for rerouting is one mile. The traffic impact on Cedar Lake Road and Ford Road was also reviewed. MnDOT understands there’s a problem; however, it’s not significant to warrant traffic signals at this time, even if the access is closed and traffic is increased. A slide was presented with the project development schedule. Another public open house will be held early 2016 to discuss the design of the current plan. Municipal consent was requested on September 30, 2015, via a letter and the public hearing is today. Mr. Lutaya stated MnDOT is listening to feedback from the community to develop the project and he encouraged comments and suggestions to help the project run smoother. Mayor Jacobs opened the public hearing. Phil Olson, with the engineering department of the City of Minnetonka, stated he attended the meeting to convey the concerns of their city’s residents. He noted the City of Minnetonka sent St. Louis Park formal correspondence expressing their opposition to the proposed closure. He explained that Minnetonka residents have a very strong presence at the 16th Street access. There are approximately 550 homes in that area that will be deferred to neighboring roads without any signals. Additionally, southbound access is very similar to northbound. Possible closure of the northbound access was reviewed by the Council a few years ago, and ultimately it was decided to leave the access open. In addition, Mr. Olson stated that crash data does not exist to support the proposed access closure at this time. Victoria Thor, 9721 16th Street West, encouraged the Council to approve closure of the access. She opined the 16th Street access is not safe. She stated she wants the neighborhood to be safe for the families in the community and to possibly consider other projects that would enhance the community should the access be closed. Jason Shannon, 1330 Jordan Avenue South, encouraged closure from a safety perspective. He explained vehicles coming off the highway are traveling much faster than the posted speed limit. Also, he stated the noise has increased since the sound wall on the other side of the freeway was constructed. Deb Nachbor, 9995 Cimarron Trail, Minnetonka, stated she uses the access as an exit off Highway 169 and comes off 16th Street to Ford Road. If the exit is closed, the traffic around her house will be increased, because the cars with no access to Highway 169 will be routed past her house. She opined that closing the access is merely trading one problem for another. She explained pedestrians are presently limited on Ford Road and the additional traffic will only make that worse. She encouraged work on Cedar Lake Road and the Highway 169 interchange be completed before the closure of the 16th Street access. Debbie Schumacher, 1320 Lancaster Avenue, explained she circulated a petition around the neighborhood to the residents most impacted by the proposed closure. She noted she City Council Meeting of December 21, 2015 (Item No. 3c) Page 5 Title: City Council Meeting Minutes of December 7, 2015 obtained approximately 85 signatures from residents who were in favor of the closure. She stated supported closure of the access and expressed belief that it will raise property values. Trish Campbell, 1404 Jordan Avenue, stated she purchased her property in 2002 and has noticed a significant increase in noise levels. She spoke in favor of closing the access, citing safety reasons. Adam Yurich, 1440 Jordan Avenue So., spoke in favor of the access closure. He referenced a report from MnDOT, which stated from 2011 to 2014 the stop sign off of the exit was hit 19 times. He opined closing the access is a safety issue. A woman who resides near the access stated she was in favor of closing the 16 th Street access. She explained the speed of the vehicles traveling in the neighborhood has increased significantly. Martin Harris, 9721 West 16th Street, explained he has lived on 16th Street for 51 years. He stated he supported the access closure. He opined that restricting access would make the neighborhood a better place to raise a family. Jana Mjor, 1330 Lancaster Avenue, admitted that she uses the access every day but was still in support of closure. She explained the exit was closed a few years ago during construction and the neighborhood was quiet and wonderful. Diana Schug, 1607 Ford Road, stated on September 23, 2015, between 7 and 8 a.m., she counted 456 cars traveling on Ford Road. She explained the residents along Ford Road will be greatly impacted by closure of the access because the amount of traffic will increase significantly. An individual residing at 1826 Melrose Avenue stated she represents 150 people in the area who want the 16th Street access to remain open. She noted in her area she found very little support for closure. She circulated a petition in the neighborhood along 18th, Parker Lane, Melrose, and towards the pond. Out of 240 residents in the area, approximately 150 signed the petition to keep the access open. Amy Marriott, 9710 16th Street West, stated she lives across from the utility building. She explained her children are not allowed to play in the front yard because the traffic is so heavy. She stated she would gladly reroute during her commute for the safety of her children. She spoke in favor of closure of the 16th Street access. Amy’s son, Victor, stated that instead of riding his scooter on the street he has to walk around the block in order to stay safe, and this does not make him happy. Tina, who lives on 16th Avenue, stated she was not in favor of closing the access She added traffic is bad on Ford Road, and not as bad on 16th Street. Nick Erpelding, 10025 Kingman Lane, Minnetonka, stated crossing Ford Road as a pedestrian to get to Ford Park would be difficult if the access was closed, due to the increase in traffic the neighborhood would see. He understood the issue on 16th Street, but wanted to point out how the closure would impact his neighborhood. City Council Meeting of December 21, 2015 (Item No. 3c) Page 6 Title: City Council Meeting Minutes of December 7, 2015 Angela Beier, 1420 Jordan Avenue South, explained she uses and enjoys the convenience of the exit, but also sees that the access has become a safety hazard. She added she is in favor of the noise wall that would be built if the access is closed because it would make her house easier to sell. Howard Walstein, 1651 Melrose Avenue, stated he walks his dog every day on 16th Avenue by Kilmer Pond. He explained he circulated a petition around the neighborhood and a majority of the residents who signed the petition were in favor of keeping the exit open. He noted if the exit is kept open his biggest concern is that nothing has been done to mitigate the speed of the vehicles. If access is closed, he opined there may be fatalities on Cedar Lake Road. Councilmember Mavity stated she has recorded sayings that Mayor Jacob has said throughout his time on the Council. One of those sayings is that our job as the City Council is to come together once a week, disagree, shake hands, go home and come back and do it again. She encouraged residents to apply this same strategy in their neighborhoods. Mayor Jacobs pointed out the City’s good working relationship with surrounding cities. He added whether the access is closed or not, the streets need to be safe. Dr. Graham Keith, 1612 Melrose Avenue, stated the 16th Street access has been closed three times in the last 20 years. He inquired if MnDOT had information on whether or not the surrounding streets have seen an increase in the number of accidents occurring during those times. He noted he was supportive of closing the access. Beth Davis, 9624 Robin Oak Road, Hopkins, stated there is a large volume of traffic. She has noticed that vehicles turn onto Cimarron to get to the stoplight and travel at an increased speed. She opined this tendency will most likely increase with closure of the access. Scott Richter, 1636 Melrose Avenue, asked if there is crash data available for vehicles going south on Highway 169 because acceleration at that point is not favorable. Also, he asked if there is an option to temporarily close the access to gather statistics on how the area is affected. Mr. Lutaya stated temporarily closing the access is not an option. He noted there were 19 stop sign hits and 25 non-serious crashes on Highway 169 near the access point in approximately the last 20 years. Debbie Anderson, 1821 Melrose Avenue, stated she would like to see the access closed due to safety concerns. She opined a stoplight is necessary at the intersection of Ford Road and Cedar Lake Road in Minnetonka. She stated she uses a different route to avoid the area, because other vehicles have honked or shown road rage when she goes the speed limit. Bill, who lives on Ford Road and Ford Circle, stated he is in favor of keeping the access open due to the amount of traffic that would rerouted onto Ford Road if the access was closed. Tia Fink, 1605 Melrose Avenue, stated she has lived in the neighborhood since 2002. She explained she has a 3-year-old who has been confined to playing solely in the backyard due to the volume of traffic on her street. She explained she would like her kids to be able to play out front, so she supports closure of the access. City Council Meeting of December 21, 2015 (Item No. 3c) Page 7 Title: City Council Meeting Minutes of December 7, 2015 Stephanie Schanno, 1330 Jordan Avenue South, stated walking in the 16th Avenue neighborhood is very dangerous due to the sightlines. Jamie Marriott, 9710 16th Street West, stated there are funds allocated to the visual barrier if the access is closed at this time. She clarified if the access is not closed at this time, the funds would be reallocated and a visual barrier would not be constructed. Mr. Lutaya explained if an overhaul is done where a lane is added on Highway 169, a noise analysis will be done and if it comes back that a noise wall is needed one will be installed. Another way to get a noise wall is via the priority system. The 16 th Street neighborhood falls at position 162 out of 280 sites, so it would be a while before the noise wall would be approved via this route. At this time, the visual barrier was added to the project to make the closure more favorable for the City. Ms. Marriott clarified that it would be in the City’s best interest, as a good business decision, to close the access now because if MnDOT closes the access at some point in the future the visual barrier may not be constructed or the City may have to fund its construction. John Schech, 1414 Melrose Avenue, asked about the difference between a visual barrier and a sound wall. Mr. Lutaya responded that a visual barrier and noise wall are one in the same for MnDOT. For this project, MnDOT is proposing that the highest part of the wall be 6 feet around 394; however, going south passed 16th Avenue, the wall will be as high as 20 feet. Mr. Schech suggested, if the access is closed, funds should be allocated to add traffic revisions to Ford Road because, in his opinion, they will be necessary. Mayor Jacobs closed the public hearing. Councilmember Brausen stated he appreciates the feedback from residents. He explained it’s a difficult problem to balance the competing needs, because one side is going to be unhappy. He expressed his support of closing the access, noting he realizes the challenges, but felt it was a public safety issue. He opined a fatality is imminent, so the sensible decision is closure. Councilmember Sanger stated she supports closure of the access for the same reasons as Councilmember Brausen. In addition, the visual barrier included in the project is desired. She explained that if the Council does not grant municipal consent, and MnDOT unilaterally closes the access, the City would not get the visual barrier. Councilmember Mavity thanked the speakers. Regarding the idea that the traffic at the two intersections could get more challenging, she stated those two intersections are located in Minnetonka so they are outside of the Council’s jurisdiction. She stated she does have safety concerns on Ford Road. She stated that a short section of sidewalk on Ford Road is not included in the City’s 10-year sidewalk plan, but can be added if Minnetonka wants to add a sidewalk to Ford Road. Councilmember Spano stated he supports closing the access. In his opinion, the strongest argument for closure is the stop sign that’s been hit 19 times in 4 years, which is once every ten weeks. He opined the City should deliberately work with Minnetonka to improve traffic conditions on Ford Road. He stated the 16th Street access is structurally deficient, Ford Road is not. City Council Meeting of December 21, 2015 (Item No. 3c) Page 8 Title: City Council Meeting Minutes of December 7, 2015 It was moved by Councilmember Brausen, seconded by Councilmember Sanger, to waive the reading and adopt Resolution No. 15-194, supporting the closure of the W. 16th Street Access ramps on the West side of Highway 169 at W. 16th Street and construction of a visual barrier. The motion passed 7-0. 6b. Public Hearing - Zero Waste Packaging Ordinance. Ms. Fisher presented the staff report using a slide to explain the background of the Zero Waste Packaging ordinance. This issue was presented at study sessions in early 2015. On November 23, 2015, the final draft of the proposed ordinance was submitted to the Council. Ms. Fisher explained that the goal of the ordinance is to increase traditional recycling and organics recycling while reducing waste and environmental impact. The intent of the ordinance is to accomplish the goals through the two major requirements, which are food establishments are required to use “Zero Waste Packaging” for food prepared and served onsite or packaged to go, and food establishments are required to provide onsite recycling or organics recycling for customers dining in. The ordinance applies to all food establishments that have food prepared for immediate consumption in the City licensed by Hennepin County. She explained that only dine-in establishments are required to have recycling bins. Food trucks do not qualify for an exception and must have recycling bins. Ms. Fisher stated packaging used by food establishments for food and beverage eaten on- site or taken to go must be reusable or returnable, recyclable, or compostable. The ordinance does not include utensils, plastic wrap, straws and stir sticks. The reusable packaging must be reusable or refillable such as a water bottle or growler. The recycling packaging is required to be constructed of recyclable material and accepted by local material recovery facilities. Packaging that is compostable must be acceptable locally and made with unlined paper or certified compostable materials. Ms. Fisher explained Public Works may develop rules and regulations as necessary and the rules of the ordinance will be reviewed and presented to Council for approval annually. The exemption process will be made available for non-compliant packaging products that have no reasonable commercially available option. Violations will be subject to administrative penalties and corrective action must occur in 14 days. If the ordinance is passed, the effective date would be January 1, 2017. Staff recommends if Council is in favor of the ordinance, that Council make a motion for the first reading of the Zero Waste Packaging ordinance. If the ordinance is passed, Public Works would use 2016 to develop lists of acceptable products and exemptions, develop education and outreach materials, and create activities offering technical assistance to those businesses that would be effected by the ordinance. Mayor Jacobs opened the public hearing. John Easter, representing the American Chemistry Counsel, stated he has been participating in the entire process. He stated he is also representing the interests of the Plastics Packaging Group. He expressed his support of the goal of zero waste under the ordinance. However, there exists two concerns and proposed written amendments were City Council Meeting of December 21, 2015 (Item No. 3c) Page 9 Title: City Council Meeting Minutes of December 7, 2015 provided to the Council to address those concerns. First item involves the definition of recyclable packaging. The American Chemistry Council and the Plastics Packaging Group recommend adding all plastics, including polystyrene, to the group as recyclable to encourage recycling. The second item involves an amendment to the section on exceptions, which would add a hardship provision stating that at any time there is more than a 10% cost, based on wholesale to a food packaging item, the provision would grant an exception. He also mentioned that when Minneapolis enacted their zero waste ordinance, this same hardship provision was used. Dave Kluesner, International Paper in Madison, Wisconsin, explained that International Paper is one of the largest paper-based food packaging distributors in the world. He stated he reviewed the draft proposal. International Paper’s basic cup has a poly-lining that would not fall under the compostability or recyclability requirements. The products that have a PLA lining (corn based) do qualify, but there’s an approximately 30% price increase. He explained paper cups have been accepted in the mixed paper waste stream in some of the bigger cities such as Seattle. He stated the Food Packaging Institute is compiling a list of paper mills in the nation to help with this issue, which could be provided upon request once it’s available. Deb McMillian, Twin West Chamber of Commerce, stated she supports small businesses. She stated this ordinance creates an increase cost where the neighboring cities don’t have, so the City would not have the competitive edge. She encouraged the City to wait until the compostable material choices and cost can catch up. Dan McElroy, Executive Vice President of the Minnesota Restaurant Association and the Minnesota Lodging Association, stated that he wanted the Council to create an exception for the lid of the cup as the eco-lid is structurally inferior, is more expensive and does not hold liquid as long. Also, since consumers are invited to recycle plastic types 1 through 7 in the City, he opined that the City should treat both residents and businesses the same. Mr. McElroy explained that as far as paper is concerned, uncoated is assumed to be compostable but lined is not. The cups are coated with one of three materials, wax, clay, or polyethylene. In addition, paper used in food establishments typically is not certified so, he opined, the City would be blazing new pathways. Mr. McElroy explained that franchises buy standard cups under contract for a region. With compostable requirements, the costs would increase significantly because the franchises will not receive the quantity discount. He asked the Council to reconsider this ordinance, because, in his opinion, the people of the City should make the decisions, not the Council. Conrad Segal, 2621 Georgia Avenue South, stated he is against the ordinance. He opined this decision is beyond the scope of the Council, and the ordinance represents the loss of freedom and is a government overreach. Emily Barker suggested the City commit to recycling all the way if the ordinance is passed. She stated that if the ordinance is piecemealed with a bunch of exceptions, the goal will not be achieved. As the ordinance is written, City staff are allowed to review on a yearly basis; therefore, the ordinance can be amended with new demand, collectors and products available. She stated she understands the price issue, but with more demand, price goes down. City Council Meeting of December 21, 2015 (Item No. 3c) Page 10 Title: City Council Meeting Minutes of December 7, 2015 Annmarie Treglia, Global Manager at DART Container Corporation, stated that the price of recycling polystyrene is coming down due to more demand. She stated to encourage more recycling, the City should try a pilot project first. She is happy to work with the City to help draft a plan to recycle polystyrene. DART Container Corporation has been recycling polystyrene since 1990. Councilmember Hallfin asked Ms. Treglia when will there be a local plant to recycle the polystyrene as the City can’t recycle if it costs more money to ship it to Iowa. Ms. Treglia responded that the State is not currently doing polystyrene recycling so there is no market for a plant. Councilmember Mavity stated recycling has been ongoing since the 1980’s and polystyrene has not been commonly accepted as recyclable; therefore, the time has come to develop a new strategy. Terry Gips, 9000 West 28th Street, is an economist, a sustainability consultant, and Chair of the City’s Environment and Sustainability Commission. Since not all commissioners granted their support of his findings, he is presenting as a concerned citizen. He explained the commission has been working hard on many sustainability issues including zero waste for the City. It is his hope that the policies enacted will focus on key priorities. He opined that the City needs to look at the ordinance as a county proposal rather than just a city proposal, because there are still many unanswered questions that need to be addressed before moving forward with the policy. Mayor Jacobs closed the public hearing. Councilmember Brausen stated that he believes this is a shared concern and needs to be a community approach. He stated the City needs to do what’s healthy and sustainable and this is a step in the right direction. Councilmember Sanger stated it appears that the most consistent arguments presented to the Council state that polystyrene is actually recyclable; however, that does not help the residents in Minnesota. She expressed her agreement with Councilmember Mavity, who stated the industry has had decades to try to set up recycling for these projects, yet none exist. Councilmember Sanger also stated she is sympathetic to the cost to businesses to comply with the ordinance. To the extent there are businesses using products that would be illegal, the environment is taking the hit and the businesses are profiting. She stated there is not one statewide standard and approach to zero waste so the City has to start somewhere. She stated she supports this ordinance, as it’s the right thing to do. Councilmember Hallfin stated he supports the ordinance. He compared the City’s current position to curbside recycling in the 1980s. The City will pioneer the way now as back then. He stated the City is moving in the right direction. Councilmember Lindberg stated the Council has discussed this ordinance for almost a year. He does support the ordinance; however, he would like to further discuss the impact on small businesses and the grant programs available to assist in the cost to implement this ordinance. City Council Meeting of December 21, 2015 (Item No. 3c) Page 11 Title: City Council Meeting Minutes of December 7, 2015 It was moved by Councilmember Brausen, seconded by Councilmember Mavity, to approve the first reading of the proposed Zero Waste Packaging Ordinance and set the second reading for December 21, 2015. The motion passed 7-0. 6c. Public Hearing – 2016 Proposed Budget, Tax Levies and Truth in Taxation Public Hearing. Brian Swanson presented the staff report, which has been shortened but is available in its entirety on the City’s website. Mr. Swanson stated the City has experienced a decline in revenue, because the rec center is undergoing a federally-mandated renovation so ice time revenue is reduced. Mr. Swanson discussed transfers into the City’s budget. He presented a slide with pie charts detailing the city’s general fund expenditures. He explained the City is proposing two full time positions, one in fire and one in police to be filled next year. Mr. Swanson explained that there is a 4.64% increase, or $ 1,512,656, in the 2016 General Fund Budget when compared to 2015. The proposed general fund budget is $34,137,094. On September 21, 2015, a Preliminary Property Tax Levy was adopted at 6.5% and was subsequently proposed to Council. In response, Council directed staff to proceed with a 6% ($1.6 million) tax levy increase for this meeting. On January 2, 2015, the assessor sets the taxable market value for taxes payable in 2016 and other key dates for the City’s tax process. Using a chart, Mr. Swanson presented and explained the average residential property tax percentage change in all jurisdictions. He also presented and explained the average business property tax percentage change and where property taxes are spent. Comparing the tax rates with other cities, the City ranks 18 out of 45 for city residential property taxes, and the City is ranked 21 out of 45 for overall residential property taxes in Hennepin county. Mayor Jacobs opened the public hearing. No speakers were present. Mayor Jacobs closed the public hearing. 7. Requests, Petitions, and Communications from the Public – None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. Ordinance Amending St. Louis Park City Code Chapter 3, Section 57 Related to Microdistillery Licenses. Ms. Kennedy presented the staff report regarding the first reading of an ordinance related to microdistilleries. This issue was discussed in-depth at a City Council Study Session on September 28, 2015. She explained at that time, the City Council directed staff to proceed with drafting the first reading of an ordinance that would provide for two new license classifications, a microdistillery cocktail room license and a microdistillery off-sale license. She stated both new types of license classifications would be subject to all applicable state and local regulations, including the days and hours of sale. She noted a City Council Meeting of December 21, 2015 (Item No. 3c) Page 12 Title: City Council Meeting Minutes of December 7, 2015 provision was included, based on previous Council discussion that would prohibit a restaurant from being located at a cocktail room. It was moved by Councilmember Hallfin, seconded by Councilmember Spano, to approve the first reading of an Ordinance Amending St. Louis Park City Code Chapter 3, Section 57 related to provide for Microdistillery Cocktail Room Licenses and Microdistillery Off- Sale Licenses and to Schedule the Second Reading of the ordinance for December 21, 2015. The motion passed 7-0. 8b. 4900 Excelsior - Final Plat and Final Planned Unit Development (PUD - First Reading). Resolution No. 15-195. Mr. Walther presented the staff report regarding the final plat and final planned unit development at 4900 Excelsior, which is located in the Wolfe Park neighborhood. The property is currently zoned for mixed use and high-density multiple family residential. The property will be rezoned to include two parcels: one owned by the EDA and one owned by LA Fitness. The final plat would combine the properties into one lot and dedicate right- of-way and drainage and utility easements. This plan is consistent with the preliminary plat that was approved by the Council. He stated the building design has been revised and discussed at several City Council meetings over the past 10 months. Mr. Walther presented several illustrations of the proposed development, and highlighted several of the improvements that have been made to the plans. Mr. Walther further explained how the parking is provided and how the portions of the off- site parking would be shared by the commercial employees and residential guests A shared parking study was conducted at the site, and the peak demand was defined as 331 spaces based on an earlier proposal for 183 units, rather than the 164-176 units currently proposed. He explained a traffic study was also completed. The traffic study looked at the proposed uses and evaluated the trip distribution. It was found that the development would have little to no impact on the traffic situation on the corners of the development. Mr. Walther stated there has been a neighborhood meeting on this issue and the Council also has met five times to discuss this project. Staff is recommending approval of the proposed PUD. Councilmember Mavity expressed her support of the project. She pointed out that the drawings and renderings contained on pages 299 through 306 in the packet are not relevant to tonight’s discussion. She opined the project is a great value as to the return on investment and will help bring this area alive. Councilmember Sanger stated she will vote no, because this project is too big for the area, lacks green space at ground level, and does not plan for enough parking. The City is making an error counting street spaces toward this project. She opined the community does not need more small apartments, because they do not accommodate families. She stated this parcel is ripe for redevelopment; however, this is not the right project. It was moved by Councilmember Mavity, seconded by Councilmember Lindberg, to waive the reading and adopt Resolution No. 15-195, approving the Final Plat for Park Commons West for properties at 4760 and 4900 Excelsior Boulevard, subject to conditions, and City Council Meeting of December 21, 2015 (Item No. 3c) Page 13 Title: City Council Meeting Minutes of December 7, 2015 approve first reading of the Ordinance creating Section 36-268-PUD 2 and amending the Zoning Map from MX Mixed Use and R-C High Density Multiple Family Residence to PUD 2 for property bound by Excelsior Boulevard, Quentin Avenue South, Park Commons Drive, and Princeton Avenue South, and to set the Second Reading of the Ordinance for December 14, 2015. The motion passed 6-1. (Councilmember Sanger opposed.) 8c. Bid alternates and the addition of LED lighting upgrades in both ice arenas as a part of The Rec Center Refrigeration Replacement Project. Commissioner Brausen stated the City received a $400,000 Mighty Ducks Grant that allowed the City to use these funds for additional energy efficiency upgrades as part of this project. It was moved by Councilmember Brausen, seconded by Councilmember Mavity, to approve the bid alternates and the addition of LED lighting upgrades in both ice arenas as a part of The Rec Center Refrigeration Replacement Project. The motion passed 7-0. 8d. Recognize Public Service Worker Donald Schmaus for his 30 years of service to the City of St. Louis Park. Resolution No. 15-197. Councilmember Spano stated that Mr. Schmaus worked for the City for 30 years. He would like to recognize Mr. Schmaus for his excellent years of service to the City. It was moved by Councilmember Spano, seconded by Councilmember Mavity, to waive the reading and adopt Resolution No. 15-197, approving to recognize Public Service Worker Donald Schmaus for his 30 years of service to the City of St. Louis Park. The motion passed 7-0. 9. Communications This is Mayor Jacobs’ last meeting with the Council. The Council expressed their appreciation to Mayor Jacobs. The Council discussed Mayor Jacobs’ career, noting he has set a high bar for the Council to follow. 10. Adjournment The meeting adjourned at 10:33 p.m. ______________________________________ ______________________________________ Melissa Kennedy, City Clerk Gregg Lindberg, Mayor Pro Tem Meeting: City Council Meeting Date: December 21, 2015 Consent Agenda Item: 4a EXECUTIVE SUMMARY TITLE: Amend Contract with Summit Envirosolutions, Inc. Relating to 2015 Reilly Consultant Services RECOMMENDED ACTION: Motion to approve Amendment No. 1 to the 2015 Contract with Summit Envirosolutions, Inc. for consultant services related to the implementation of the Reilly Tar and Chemical Corporation Remedial Action Plan. POLICY CONSIDERATION: None. Does the City Council have any questions regarding the proposed contract amendment? SUMMARY: On December 15, 2014, the City entered into a contract in the amount of $257,500, with Summit Envirosolutions, Inc. for consultant services related to the implementation of the Reilly Tar & Chemical Corporation (“Reilly”) Remedial Action Plan (RAP) for 2015. That contract was based on a mutually agreed upon work plan and projected expenses (by task) to be performed. Summit’s 2015 year-to-date expenses total approximately $254,623 (through November 28, 2015). It does not appear the remaining contract balance is sufficient to cover anticipated costs through the end of the year. Staff is recommending the 2015 contract amount be increased by $10,000 for a revised total of $267,500. The increase allows for additional consulting services, groundwater sampling, laboratory coordination, and project management expenses related to modifying the Consent Decree/ Remedial Action Plan (CD/RAP). FINANCIAL OR BUDGET CONSIDERATION: The Water Utility Fund pays all Reilly expenses and will be utilized to pay for this additional work. VISION CONSIDERATION: St. Louis Park is committed to being a leader in environmental stewardship. We will increase environmental consciousness and responsibility in all areas of city business. SUPPORTING DOCUMENTS: Discussion Revised Cost Estimate Contract Amendment Prepared by: Mark Hanson, Superintendent of Public Works Reviewed by: Cindy Walsh, Director of Operations and Recreation Approved by: Tom Harmening, City Manager City Council Meeting of December 21, 2015 (Item No. 4a) Page 2 Title: Amend Contract with Summit Envirosolutions, Inc. Relating to 2015 Reilly Consultant Services DISCUSSION BACKGROUND: In 2013, under the direction of the City Manager, Staff made a concerted effort to work with the Agencies to update the CD/RAP pollutant criteria with the end goal of updating the water quality standards in the Consent Decree and the cessation of pumping in the upper groundwater aquifers. The City Manager has enlisted the legal services of Lockridge, Grindal, Nauen to assist staff in developing a stronger technical argument. The resulting technical inquiries from the Agencies have driven up the annual monitoring costs. A brief summary of the tasks and additional services/costs are described below: Task 100 - Annual Report: This task is expected to be $10,000 under budget. Task 150 - Annual Progress Report: This task is expected to be on budget. Task 400 - Ground Water Monitoring: This task is expected to be $12,000 over budget. Agency comments on the 2015 Sampling Plan required collecting more samples than were originally planned. Task 480 -Sampling Plan and QAPP: This task is expected to be $8,000 over budget. Each year this budget item is intended to cover the cost to prepare the plans for the subsequent calendar year. Agency comments to date on the 2015 Plan have resulted in higher than expected costs. The 2016 plan is still in development. Task 600 - Lab Coordination and Audit: This task is expected to be $3,500 over budget. Additional Agency requested samples and data auditing combined with the unexpected need to purchase new sampling equipment have resulted in significantly higher sampling costs than originally planned for 2015. Task 700 - RAP Renegotiation/Site Closure Activities: This task is expected to be $9,500 under budget. Most task activities have been delayed until 2016. Task 810 – Program Management and Miscellaneous: This task is expected to be $6,000 over budget. The scope of this task depends on the amount of communications with the Agencies and the number of “miscellaneous” items that arise during the course of the year. Despite our best intentions to hold down costs and match historical budgeted amounts, 2015 has brought additional Agency data requests resulting from our ongoing push to modify the CD-RAP. The attached spreadsheet provides detailed monthly charges by Task associated with the Summit Envirosolutions, Inc. contract along with original budget amounts and projected budget amounts needed to complete this year’s contract work. City Council Meeting of December 21, 2015 (Item No. 4a) Page 3 Title: Amend Contract with Summit Envirosolutions, Inc. Relating to 2015 Reilly Consultant Services Table 1. Revised Estimated Project Costs Task Description Original Estimated Cost Approximate Costs to Date Revised Estimated Cost Task 100 - Annual Monitoring Report $30,000 $18,500 $20,000 Task 150 - Progress Report and GAC Plant Report $3,000 $1,800 $3,000 Task 400 - Groundwater Monitoring and Sample Shipment $50,000 $60,000 $62,000 Task 480 - Sampling Plan and QAPP $10,000 $15,000 $18,000 Task 600 - Laboratory Coordination $104,500 $105,000 $108,000 Task 700 - Site Closure (Cessation Activities) $10,000 $200 $500 Task 810 - Project Management and Miscellaneous $50,000 $54,100 $56,000 Total estimated costs $257,500 $254,600 $267,500 City Council Meeting of December 21, 2015 (Item No. 4a) Page 4 Title: Amend Contract with Summit Envirosolutions, Inc. Relating to 2015 Reilly Consultant Services CITY OF ST. LOUIS PARK AMENDMENT NO. 1 to 2015 CONTRACT for REILLY CONSULTING SERVICES THIS AGREEMENT is made on December 21, 2015, by and between the CITY OF ST. LOUIS PARK, Minnesota, a Minnesota municipal corporation (hereinafter referred to as “City"), and SUMMIT ENVIROSOLUTIONS, INC., a Minnesota corporation (hereinafter referred to as "SUMMIT"). 1. BACKGROUND. The parties have previously entered into an agreement for consulting services dated December 15, 2014, in the amount of $257,500 for calendar year 2015. 2. CONTRACT AMOUNT. Subject to the modifications set forth herein, the Agreement is increased an additional $10,000 to a maximum contract amount of $267,500 for calendar year 2015. IN TESTIMONY WHEREOF, the patties hereto have caused this Agreement to be executed by their respective duly authorized officers. IN TESTIMONY WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly authorized officers. Reviewed for Administration Adopted by the City Council December 21, 2015 City Manager Mayor Attest: Summit Envirosolutions, Inc. By_________________________________ City Clerk Its__________________________________ By _________________________________ Its__________________________________ Meeting: City Council Meeting Date: December 21, 2015 Consent Agenda Item: 4b EXECUTIVE SUMMARY TITLE: Amend 2015 Contract with Summit Envirosolutions, Inc. to Extend Reilly Consultant Services through 2016 RECOMMENDED ACTION: Motion to approve Amendment No. 2 to the 2015 contract with Summit Envirosolutions, Inc. (Summit) for consultant services related to the implementation of the Reilly Tar & Chemical Corporation (Reilly) Remedial Action Plan (RAP). POLICY CONSIDERATION: Does the City Council desire to continue with Summit as the City’s consultant for the Reilly Tar and Chemical RAP? SUMMARY: In September, 1986, the Reilly Consent Decree became effective and the City accepted responsibility for a number of environmental remediation tasks contained in the Reilly Remedial Action Plan (RAP). Over the last 29 years the City has retained the services of consulting engineers or firms to provide for the design and/or implementation of RAP activities. On December 15, 2014, the City approved a one year contract (with annual renewal options) with Summit for consultant services related to the implementation of the Reilly RAP. Amendment No. 1 increased the contract amount from $257,500 to $267,500. This amendment would approve the first of two annual renewal options. Annual Reilly contract activities include, but are not limited to: • Groundwater sampling and analysis • Drafting annual reports for agency review • Aquifer studies and historical file searches • General project administration FINANCIAL OR BUDGET CONSIDERATION: As we approach the 30-year anniversary of the CD/RAP, the Agencies are reviewing where, when and why we are sampling. This has resulted in costs rising in recent years as the Agencies have requested additional sampling and data collection so they can evaluate the long term sampling needs of the site. Staff is hopeful that this short term rise in costs will result in significant long term savings and will provide Council with an update on recent Reilly activities, costs and next steps in early 2016. The proposal received from Summit estimates the cost for 2016 work tasks at $275,000. The 2016 Reilly Budget contains funding for these Reilly related consultant activities. VISION CONSIDERATION: St. Louis Park is committed to being a leader in environmental stewardship. We will increase environmental consciousness and responsibility in all areas of city business. SUPPORTING DOCUMENTS: Discussion Contract Amendment Prepared by: Mark Hanson, Superintendent of Public Works Reviewed by: Cindy Walsh, Director of Operations and Recreation Approved by: Tom Harmening, City Manager City Council Meeting of December 21, 2015 (Item No. 4b) Page 2 Title: Amend 2015 Contract with Summit Envirosolutions, Inc. to Extend Reilly Consultant Services through 2016 DISCUSSION BACKGROUND: While many of the studies required by the Reilly RAP have been completed, certain tasks such as groundwater sample retrieval and annual reporting represent ongoing activities which require consultant services. Summit has provided consultant services for these ongoing tasks in the past, and as such, has been recognized by the United States Environmental Protection Agency (U.S. EPA) and Minnesota Pollution Control Agency (MPCA) as an approved consultant for such activities. Contract activities have included, but not been limited to:  Groundwater sampling and analysis  Drafting annual reports for agency review  Aquifer studies  Investigation of leaking wells  Soil investigations  Historical file searches  General project administration 2016 Environmental Services The following work tasks describe the work and associated costs expected during 2016: Task 100 - Annual Monitoring Report: Summit will draft text and prepare figures and tables as necessary to assist the City in completing the 2015 Annual Monitoring Report. The Annual Monitoring Report is expected to include various report elements to be determined in advance, similar to last year. With the pre-approval of the content, report revisions should be minimal. Elements of the report will include the CD-RAP requirements for the annual GAC Plant Report. Task 150 - Annual Progress Report and GAC Plant Report: Summit will assist the City in completing the progress report for submittal to the Agencies on March 15, 2016. The report will fulfill the requirements of CD-RAP Part K in conjunction with the Annual Monitoring Report. Task 400 - Groundwater Monitoring and Sample Shipping: Summit will collect all of the monitoring well and municipal well samples identified in accordance with the 2015 Sampling Plan. Summit will also monitor water levels using a combination of transducers and manual measurements in Reilly Site wells. The task budget shown in Table 1 includes Summit’s labor and expenses to collect the same number of samples in 2016 as were collected in 2015. Task 480 - Sampling Plan and QAPP: This task involves responding to Agency comments on the 2016 Annual Sampling and Quality Assurance Project Plans, and preparation of the respective 2017 plans that will be due on October 31, 2016. In the past we have underestimated the amount of work for revisions to the plans required by the Agencies, and this contingency is accounted for in the $12,000 estimate shown in Table 1. City Council Meeting of December 21, 2015 (Item No. 4b) Page 3 Title: Amend 2015 Contract with Summit Envirosolutions, Inc. to Extend Reilly Consultant Services through 2016 Task 500 – Five Year Review Issues: The last Five-Year Review was completed by the Agencies in 2011. One remaining issue is their concern PAH is migrating south. The 2016 report will contain this and other items the Agencies would like the City to address. Summit tracks its costs for assisting the City in response to the 2016 Five Year Review under Task 500. Task 600 - Laboratory Coordination: Table 1 provides cost estimates for five subtasks as summarized below: 1. Working with ALS Kelso and Pace Labs on implementing the QAPP, coordinating sampling events, and updating and maintaining the water quality database. This task also includes water level and water quality data exchanges with the Agencies. 2. Providing data quality review and/or data validation for all of the laboratory testing. The data validation and data quality review will be documented in the Annual Monitoring Report. 3. ALS Kelso laboratory subcontract for part-per-trillion PAH analyses for an estimated 120 samples and the Level 4 data packages which are needed for validation. The cost per sample is $324.28 including Summit’s 10% handling fee. 4. Pace laboratory subcontract for priority pollutant PAH analyses for an estimated 65 samples and Level 4 data packages. The cost per sample is approximately $82 including Summit’s 10% handling fee. 5. ALS Kelso laboratory audit. Summit and its subcontractor will visit the Kelso, Washington laboratory and perform an audit in accordance with the Quality Assurance Project Plan. Audits of the Test America Denver laboratory were generally conducted every other year in the past, but no recent audits have been done and ALS has not been audited since they began work on the project last year. Task 700 - Site Closure: This task involves the collection of water level and flow data and analysis using groundwater visualization software to demonstrate the extent to which pumping controls the groundwater in various aquifers. This task has been a minimal effort in the past year because we are waiting for the results and conclusions of SSPA’s modeling which will presumably determine the same thing. Task 810 - Program Management and Miscellaneous: This task includes overall planning, directing, and controlling Summit’s resources to perform this project. The task also includes miscellaneous project activities throughout the year, such as the review of Agency contractor reports, the upcoming Five Year Review report, correspondence, and meetings. Summary As noted above, Summit staff has been deeply involved in previous related activities and has collaborated with the City in the development of proposals submitted to the Agencies for the work tasks listed. As in the past, all activities are assigned through, and closely monitored by staff. Wherever possible, staff drafts reports for submittals, makes contacts with the Agencies, and coordinates the consultant activities, thereby reducing out of pocket expenditures. Staff supports the use of Summit for the work tasks described in this report. City Council Meeting of December 21, 2015 (Item No. 4b) Page 4 Title: Amend 2015 Contract with Summit Envirosolutions, Inc. to Extend Reilly Consultant Services through 2016 FINANCIAL OR BUDGET CONSIDERATION: Significant funds are expended on responding to Agency concerns over sampling, monitoring, and reporting. The variation in costs from year to year is associated with responding to EPA/MPCA requests. Additionally, as we approach the 30-year anniversary of the CD/RAP, the Agencies are reviewing where, when and why we are sampling. This has resulted in costs rising in recent years as the Agencies have requested additional sampling and data collection so they can evaluate the long term sampling needs of the site. The proposal received from Summit estimates the cost for 2016 work tasks at $275,000. The 2016 Reilly Budget contains funding for these Reilly related consultant activities. A summary of the 2016 Summit work tasks and their estimated costs is shown below at Table 1: Table 1. 2016 Reilly Site Estimated Project Costs Task Description Estimated Cost Task 100 ‐ Annual Monitoring Report $22,000 Task 150 ‐ Progress Report and GAC Plant Report $3,000 Task 400 ‐ Groundwater Monitoring $60,000 Task 480 ‐ Sampling Plan and QAPP $12,000 Task 600 ‐ Laboratory Coordination Subtask 1: Lab coordination $18,000 Subtask 2: Data validation and review $25,000 Subtask 3: ALS Kelso subcontract 120 PPT samples at $325/sample $45,000 Subtask 4: Pace subcontract (65 samples at $206 each) $20,000 Subtask 5: Lab Audit $15,000 Task 600 - Total $123,000 Task 700 ‐ Site Closure $5,000 Task 810 ‐ Project Management and Miscellaneous $50,000 Total estimated project cost $275,000 Contract Terms The following significant terms have been in past contracts and are also incorporated in this contract: 1. This extension of the 2015 contract terminates on December 31, 2016, with City rights to extend for one additional option year. 2. Compensation to be based on actual work performed with a maximum contract amount of $275,000 for 2016. 3. Summit will defend and indemnify the City for Summit’s actions related to this contract. 4. Summit has independent contractor status. 5. City may terminate this contract at any time for any reason with a 60 day written notice. City Council Meeting of December 21, 2015 (Item No. 4b) Page 5 Title: Amend 2015 Contract with Summit Envirosolutions, Inc. to Extend Reilly Consultant Services through 2016 CITY OF ST. LOUIS PARK AMENDMENT NO. 2 to 2015 CONTRACT for REILLY CONSULTING SERVICES THIS AGREEMENT is made on December 21, 2015, by and between the CITY OF ST. LOUIS PARK, Minnesota, a Minnesota municipal corporation (hereinafter referred to as “City"), and SUMMIT ENVIROSOLUTIONS, INC., a Minnesota corporation (hereinafter referred to as "SUMMIT"). 1. BACKGROUND. The parties have previously entered into an agreement for consulting services dated December 15, 2014 ("Initial Agreement"). The Initial Agreement authorized the CITY to extend its term for up to two (2) additional one-year periods. 2. EXTENSION. Subject to the modifications set forth herein, this Agreement is extended for a one (1) year period terminating on December 31, 2016. 3. SCOPE OF WORK AND BUDGET FOR YEAR 2016 ENVIRONMENTAL SERVICES. The Council report dated December 21, 2015, from the City Manager, describing the year 2016 project tasks and estimated costs, is incorporated herein by reference. IN TESTIMONY WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly authorized officers. Reviewed for Administration Adopted by the City Council December 21, 2015 City Manager Mayor Attest: Summit Envirosolutions, Inc. By_________________________________ City Clerk Its__________________________________ By _________________________________ Its__________________________________ Meeting: City Council Meeting Date: December 21, 2015 Consent Agenda Item: 4c EXECUTIVE SUMMARY TITLE: Fiber Lease Agreements RECOMMENDED ACTION: Motion to approve authorization for the City Manager to enter into fiber strand and/or conduit lease agreements with other organizations for purposes of promoting economic development in the City of St. Louis Park. POLICY CONSIDERATION: Does Council find acceptable the framework and elements of the fiber infrastructure leasing agreements presented herein as a means to promote economic development and additional choice of fiber providers? Is Council comfortable with similar agreements that accommodate opportunities to lease fiber conduit as well as strand capacity? Note that the recommended action is consistent with one of the recommendations from a late 2012 fiber optic study – the opportunity to lease excess strands of dark (currently unused City- owned) fiber / conduit to the private sector to increase provider choice and support economic development in the City of St. Louis Park. This action is also consistent with the Council’s goal of making St. Louis Park a “Technology Connected Community” SUMMARY: Council received a briefing on the fiber optic study at its October 22, 2012 study session. Among recommendations presented by Joanne Hovis from CTC Consulting was that the City consider fiber leasing arrangements with private providers to enable private investment / serve community anchor institutions. Staff has been pursuing this (and other) study recommendations. Staff has worked with the City Attorney and technical resources to craft template agreements that should allow the City to be prepared to respond to fiber leasing opportunities as they arise and with a streamlined approach. NEXT STEPS: If the Council approves the recommended action staff will begin to engage with primarily private sector providers in lease agreements. This will enable the City Manager to approve fiber strand and/or conduit lease agreements as opportunities arise in the future. Staff will then work with at least one private party that has expressed on-going interest in entering into fiber lease agreements with the City. FINANCIAL OR BUDGET CONSIDERATION: Implementation of fiber lease arrangements consistent with this structure is designed to (1) cover most associated implementation and maintenance costs, (2) promote economic development in the City of St. Louis Park, and (3) be in line with lease pricing offered by other comparable entities in the Twin Cities metro region. VISION AND GOAL CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. St. Louis Park is a technology connected community SUPPORTING DOCUMENTS: Discussion Sample Indefeasible Right of Use (IRU) Sample Short Term License Agreement Prepared by: Clint Pires, Chief Information Officer Approved by: Tom Harmening, City Manager City Council Meeting of December 21, 2015 (Item No. 4c) Page 2 Title: Fiber Lease Agreements DISCUSSION BACKGROUND: As a refresher, the primary purpose of the 2012 fiber study was to identify what other community development purposes the publically-owned fiber infrastructure could serve beyond the institutional building needs of the City, Independent School District #283, and LOGIS (an intergovernmental cooperative of cities sharing IT resources). Among many recommendations from the 2012 study, CTC recommended the City explore leasing of fiber capacity to enable private investment and support economic development. The City, Schools, and LOGIS have installed almost 40 miles of fiber infrastructure since 1998. Most major and minor institutional needs for fiber (data, voice, video, security, radio) have been met. More recently, the focus has been on enhancing fiber network resiliency by building redundant fiber paths. Construction season provides the greatest risk to severing of fiber networks. Thus, this redundancy has become all the more critical as reliance on the fiber network increases. During the 2012 study, CTC and City staff reviewed current utilization of the fiber infrastructure’s capacity, anticipated what remaining capacity is likely to be needed in the foreseeable future for spare capacity and additional uses, and identified what capacity would be available for potential leasing. In this case, “capacity” really means strands of fiber. The number of strands throughout the fiber infrastructure varies widely depending on location and need. It is often the case that only two – four strands of fiber are needed to support all digital functions at any particular City or School building. However, when fiber cable is installed, it typically includes many more strands and for a small or no incremental cost. That leaves many unused fiber strands that can be used by other private entities if the fiber is in locations they or their clients need. In that case, additional fiber cable does not need to be installed, saving the private entity construction and maintenance costs, and reducing additional disruption of public rights-of- way. The typical instrument for private entity use of this fiber is a lease. This is nothing new in theory. It is very similar to the approach taken to provide use of space on elevated water towers by wireless phone carriers. That has been implemented for decades, including in St. Louis Park, and generally found to be much more cost-effective than the carriers building redundant tower facilities. In practice thus far, building of fiber facilities has been a blend of private providers (e.g., CenturyLink, Comcast, smaller companies) and other entities such as cities. The larger private providers have generally chosen to build, own, and maintain all of their own fiber infrastructure, while smaller companies have been the ones more likely to approach cities to lease fiber capacity in areas where they find that more cost-effective than building its own. That is what is happening in St. Louis Park. Over time, the City has been approached (unsolicited) by about 5 firms expressing such interest. Staff would work with entities especially focused on economic development. Specifically, this would include working with providers of broadband services that are engaged with organizations wishing to locate or expand in St. Louis Park, and where availability of broadband services is vital. To address typical lease arrangements between owners of fiber infrastructure and potential lessees, City staff and the City Attorney have drafted two agreement templates. One is called an Indefeasible Right of Use (IRU) that enables a long-term agreement between the City and lessees. It generally includes a large up-front payment followed by annual maintenance fees. The City Council Meeting of December 21, 2015 (Item No. 4c) Page 3 Title: Fiber Lease Agreements other is a short-term lease agreement (typically no more than 5 years) that includes monthly or annual payments to cover both lease and maintenance fees. Both agreement templates are crafted to protect the City-owned fiber assets, while making their excess capacity available to private entities to promote economic development. Both of these templates are attached. Final lease pricing is a moving target based on a variety of factors. However, such pricing will be consistent with economic development goals and pricing offered by other public sector entities in the Twin Cities metropolitan area as supported by pricing research conducted in the last 60 days. PRESENT CONSIDERATIONS: Staff feels the time is right to have a structure in place to facilitate economic development supporting agreements relative to fiber infrastructure. In addition, staff is currently engaged in a couple complementary activities: (1) talks are underway with US Internet regarding potential Fiber to the Premises (FTTP) – homes, businesses, etc. – services beginning in 2016, and (2) staff is in the process of discussions with the City Attorney around more formal broadband readiness requirements related to new developments and significant remodeling efforts in St. Louis Park. It is expected that these will be explored in depth at the 2016 City Council workshop. NEXT STEPS: First, Council approval would enable the City Manager to approve fiber and/or conduit lease agreements in an agile and responsive fashion as opportunities arise in the future. Second, staff will then work with at least one private party that has expressed on-going interest in entering into fiber lease agreements with the City. Third, staff plans to inform other potential lessees of the availability of dark fiber in the City. Finally, staff plans to return to Council with recommendations related to US Internet FTTP efforts and requiring broadband readiness in new and significantly remodeled buildings in the first quarter of 2016, another recommendation related to the 2012 fiber study. City Council Meeting of December 21, 2015 (Item No. 4c) Page 4 Title: Fiber Lease Agreements DARK FIBER AGREEMENT INDEFEASIBLE RIGHT OF USE THIS LICENSE AGREEMENT (“Agreement”) is made as of the ____ day of ______________, by and between the CITY OF ST. LOUIS PARK, a municipal corporation under the laws of the State of Minnesota, (“City”), whose address is 5005 Minnetonka Boulevard, St. Louis Park, MN 55416, and _______________________________, a ______________________________________, having its principal address at __________________________________________________________(“Licensee”). RECITALS: WHEREAS, the City, Independent School District #283, and Local Government Information Systems have constructed a shared fiber optic network throughout portions of the City of St. Louis Park, the City portion of which is the subject of this agreement (“City Network”); and WHEREAS, the City is willing, subject to the terms, covenants and conditions set forth in this Agreement, to grant to Licensee a license for the operation and use of certain City Dark Fiber in the City Network to Licensee, and Licensee desires to license, subject to the terms, covenants and conditions of this Agreement, the use of certain City Dark Fiber in the City Network. NOW THEREFORE, in consideration of the foregoing, and of the promises and covenants contained in this Agreement, the parties agree as follows: 1. Scope of Dark Fiber License. The City hereby grants to Licensee on an exclusive basis the right to use the strand or strands of the City Dark Fiber described in Exhibit A, along the Route Segments described in Exhibit A, as the same may be amended from time to time according to the terms of this Agreement (the “Licensed Fibers”). This license agreement authorizes Licensee to use the Licensed Fibers in accordance with the terms of this Agreement. 2. Effective Date and Term. This short-term per strand/per mile/per month Agreement shall become effective as of the date that the City executes this Agreement (“Commencement Date”) and shall remain in effect unless and until terminated in accordance with the termination provisions of this Agreement. The term of this Agreement (“Term”) shall be for a period of ___[5 or more years]___ from and after the Commencement Date unless terminated earlier according to the terms of this Agreement. The Licensed Fibers, identified in Exhibit A, may be changed from time to time in writing signed by the City and Licensee, as specified in the applicable amended Exhibit A, which shall be attached to this Agreement. The amended Exhibit A shall have its own term, which term shall commence on the date that the City executes the applicable amended Exhibit A and end on the Termination Date. 3. Definitions. For purposes of this Agreement, the terms set forth below shall be defined as follows: Acceptance Test - The tests conducted on the Licensed Fibers by the Licensee to ensure that the Licensed Fibers meet or exceed the City Dark Fiber Specifications outlined in Exhibit B. City Conduit - The City-owned conduit in which the City Dark Fiber is located. City Council Meeting of December 21, 2015 (Item No. 4c) Page 5 Title: Fiber Lease Agreements City Dark Fiber - All Dark Fiber owned by the City whether dedicated for the City's use only or whether used by the City, Licensee or a third party. City Fiber Building – The building(s) located within the City of St. Louis Park, MN in which the City Conduit is connected and the Fiber Equipment rack is located. Dark Fiber - Unused Fiber through which no light is transmitted. Fiber Equipment Rack – the equipment rack within the City Fiber Building on which the Licensee is allowed to mount their equipment and connect to the Licensed Fibers (if this agreement permits). Fiber Acceptance Date - The date of the applicable Notice of Acceptance which evidences that the Licensed Fibers in the applicable Route Segments as defined in each Exhibit A have passed the Acceptance Test and have met the conditions of Section 6. License Fee - The License Fee shall mean the Fiber License Fee as set forth in Section 4(a) of this Agreement. Licensed Fibers - shall have the definition set forth in Section 1 of this Agreement. Licensee Equipment Location - Locations where Licensee's Equipment will be installed within the City Fiber Building and Fiber Equipment Rack enclosures and Licensee's Equipment will be installed as outlined in Exhibit C (if this agreement permits). Fiber meet points (indoor and outdoor) are flexible, but also include clear demarcation and access points. Licensee's Equipment - The Licensee's terminals and peripheral equipment or facilities used with or connected to the Licensed Fibers which may be located on City's property pursuant to a separate agreement or on Licensee's own land or that of a third party. Notice of Acceptance - Licensee's written approval that the Licensed Fibers have passed the Acceptance Test. The Notice of Acceptance shall define the effective date for the Term of the Route Segment set forth in Exhibit A. Route Segment - That portion of the City's Conduit containing the Licensed Fibers installed between the identified Splice Vaults as set forth in Exhibit A. Splice Vault - The vaults installed by the City in the City Network where the City, the Licensee and other users of the City Network can splice into the City Conduit and/or the City Dark Fiber. 4. Price and Payment. (a) Licensee shall pay the City a one-time License Fee in the amount of $_____________ per route segment mile. The License Fee must be paid in full before the Licensed Fibers will be made available to Licensee for use. (b) Licensee shall pay the City an annual maintenance fee in the amount of $________per route segment mile. A prorated annual maintenance fee shall be due on the Fiber Acceptance Date for the Route Segment, and thereafter the annual maintenance fee shall be due in full on January 1 of each calendar year in which the Agreement is active. Maintenance fees are subject to an increase of up to 3% per year over the term of the Agreement, at the City’s discretion and based on costs. (c) Licensee shall pay the City for Licensee’s share of federal or state taxes, if any, which may be imposed on the Licensed Fibers during the term of this Agreement. City Council Meeting of December 21, 2015 (Item No. 4c) Page 6 Title: Fiber Lease Agreements (d) All payments due from either party to the other under the terms of this Agreement which are not paid when due shall bear interest from the due date until paid at an interest rate equal to the lesser of 1-1/2% per month or the maximum lawful rate permitted by law. 5. Acceptance Testing and Completion of Licensed Fibers. (a) Upon Licensee's request, prior to the Licensee's splicing into the applicable City Dark Fiber, the City shall have the Licensed Fibers tested at the Licensee's sole cost and expense in accordance with the procedures and standards specified in Exhibit B ("Acceptance Testing"). City shall give Licensee five (5) business days prior notice of the time and location of the Acceptance Testing, and Licensee shall have the right, but not the obligation, to be present to observe the Acceptance Testing. City shall provide Licensee with a copy of such test results. City shall deliver the Licensed Fibers to Licensee in conformance with the fiber specifications set forth in Exhibit B. (b) Licensee shall be responsible for the timely completion of any work or installation required to place the Licensed Fibers into operation. Licensee's failure to complete such work shall not be grounds for rejection of a Completion Notice. (c) Upon the successful completion of Acceptance Testing, the City shall provide written notice to Licensee (a "Completion Notice"). City shall contemporaneously deliver a copy of the results of the Acceptance Testing and Licensee shall, within fifteen (15) days of receipt of the Completion Notice, either accept or reject the Completion Notice. Licensee shall be permitted to reject only if Licensee specifies the failure of the Licensed Fibers to satisfy the requirements of this Agreement by written notice to City. Licensee's written acceptance shall constitute the Notice of Acceptance. In the event Licensee rejects the Completion Notice, City shall promptly, and at no cost to Licensee, remedy the defect or failure specified in Licensee's notice. Thereafter City shall again conduct Acceptance Testing and, if successfully completed, provide Licensee a Completion Notice. The foregoing procedure shall apply again and successively thereafter until City has remedied all defects or failures specified by Licensee. Any failure by Licensee to timely reject a Completion Notice, or any use of the Licensed Fibers by Licensee for any purpose other than testing, shall be deemed to constitute acceptance for purposes of this Agreement and Licensee shall be deemed to have delivered a Notice of Acceptance upon the earlier of (i) such use or (ii) the fifteenth (15th) day after delivery of the Completion Notice. 6. Use of Licensed Fibers; Access. Licensee shall not use the Licensed Fibers in violation of this Agreement, any applicable law, rule, regulation or order of any governmental authority having jurisdiction, or any franchise, license, agreement or certificate related to the City Network, unless the validity thereof is being contested in good faith and by appropriate proceedings (but only so long as such proceedings and Licensee's use of the Licensed Fibers does not, in City's reasonable opinion, involve any risk of the forfeiture, or loss of the City Network or the City of any other license of the City Dark Fiber, or any part thereof or any interest therein). 7. Performance and Maintenance. City shall maintain the Licensed Fibers pursuant to Exhibit D, so that at all times the Licensed Fibers perform in accordance with the standards set forth in Exhibit B. Inspection and maintenance of the Licensed Fibers will be conducted by City or its subcontractors upon the request of Licensee unless prior arrangements have been made between City and Licensee. The Licensee shall be responsible for all cost of the City relating to the inspection and maintenance of the Licensed Fibers requested by the Licensee and the Licensee shall pay the City for said cost within thirty (30) days of the City invoicing the Licensee. 8. Ownership and Title. All ownership, rights, title and interest in all the Licensed Fibers shall at all times remain exclusively with the City. All right, title and interest in the Licensee's Equipment shall at all times remain exclusively that of the Licensee. City Council Meeting of December 21, 2015 (Item No. 4c) Page 7 Title: Fiber Lease Agreements 9. Liens and Encumbrances. Neither party, directly or indirectly, shall create or impose any lien on the property of the other or on the rights or title relating thereto or any interest therein or in this Agreement. 10. Representations and Covenants Regarding Authorizations. (a) Licensee hereby represents, warrants and covenants to City as follows: (i) Licensee is duly organized, validly existing and in good standing under the laws of the State of Minnesota and has full power and authority to execute, deliver and perform the terms of this Agreement. (ii) Licensee has or will use its best commercial efforts to obtain and maintain all rights, licenses, governmental regulatory approvals, authorizations, rights-of-way, and other agreements and permissions necessary for the use of the Licensed Fibers, or Licensee's Equipment, as well as any other such rights, licenses, authorizations, rights-of-way, and other agreements, easements, or permissions necessary for the installation and use of the Licensed Fibers. Licensee shall be solely liable for all costs related thereto. (iii) Licensee covenants that its use of the Licensed Fibers shall at all times be in compliance with law and that Licensee has received and is in compliance with all regulatory authorizations. (iv) Licensee shall be responsible for and shall pay all taxes or fees, including, but not limited to, franchise fees imposed by any other governmental agency or authority as a result of Licensee’s operation or use of the Licensed Fibers pursuant to this Agreement. The City represents and warrants that with respect to any Licensed Fibers pursuant to this Agreement the City has obtained any and all necessary rights of way or other authorizations by whatever name, such that the City is legally permitted to own, use and license the Licensed Fibers; the City shall grant Licensee whatever permission is necessary such that the Licensee may benefit from such authorizations. With respect to any additional authorization required of Licensee to install or operate the Licensed Fibers, Licensee shall, at its own expense, obtain all municipal street rights and/or property leases that may be required for the construction or operation of the Licensed Fibers thereof by Licensee. (b) City hereby represents, warrants and covenants to Licensee as follows: (i) City is duly organized and validly existing under the laws of its State of Minnesota and has full power and authority to execute, deliver and perform the terms of this Agreement. (ii) City has obtained and will maintain all rights, licenses, governmental regulatory approvals, authorizations, rights-of-way, and other agreements and permissions necessary for the use of the Licensed Fibers, and the City Network including such rights, licenses, authorizations, rights-of-way, and other agreements, easements, or permissions necessary for the installation of the City Network and use of the Licensed Fibers. City shall be solely liable for all costs related thereto. 11. Compliance with Law. Each party shall perform its respective rights and obligations hereunder in accordance with all applicable laws, rules and regulations imposed by any governmental authority. City Council Meeting of December 21, 2015 (Item No. 4c) Page 8 Title: Fiber Lease Agreements 12. Access to the City Fiber Building and the Licensed Fibers. The City shall provide Licensee with reasonable access (as determined solely by the City) to the City Fiber Building and the Licensed Fibers shown on Exhibit A as described within Section 25 upon the execution of this Agreement by the City and the Licensee. 13. Relocation of the Licensed Fiber. Licensee recognizes that, from time to time, City may elect or be required to relocate the Licensed Fibers and/or City Conduit, whether such relocation is for the convenience of City or is a requirement by law or existing contract or by loss of right-of-way. In these instances, the City shall be solely responsible for all costs incurred to relocate the Licensed Fibers except for the cost related to the Licensee splicing into the new Licensed Fiber. For any other relocation, Licensee shall pay its proportional share of the cost, defined as the number of Licensed Fibers divided by the total number of City Dark Fiber and Licensee Dark Fiber in any given Route Segment. City will use commercially reasonable efforts to effect any relocation in a manner that will not cause any material interruption to Licensee's use of the Licensed Fibers. 14. Condemnation and Casualty. (a) Condemnation. If all or any portion of the Licensed Fibers are taken for any public or quasi- public purpose by any lawful power or authority by the exercise of the right of condemnation or eminent domain, the City and the Licensee shall be entitled to terminate this Agreement with respect to the Licensed Fibers affected, or if such condemnation materially affects the intended purpose of the Licensed Fibers, then Licensee may terminate the Agreement in its entirety. In such event, both parties shall be entitled to participate in any condemnation proceedings to seek to obtain compensation by separate awards for the economic value of their respective interests in the City Dark Fiber or the Licensed Fibers. (b) Casualty. If all or any portion of the City Dark Fiber, the City Conduit or the Licensed Fibers are made inoperable and beyond feasible repair due to a casualty or other Force Majeure Event (as that term is defined in Section 24 below), Licensee shall be entitled to terminate this Agreement with respect to the applicable Licensed Fibers affected by such casualty or other event. In such event, both parties shall be entitled to seek to recover the economic value of their respective interests in the City Dark Fiber, the City Conduit or the Licensed Fibers (i) under any insurance policy carried by either party or any third party, or (ii) in either joint or separate actions, from any third party that may be legally responsible for causing such casualty. 15. Government Data Practices. The parties must comply with the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as it applies to all data provided by each party under this Agreement, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by any party under this Agreement. The civil remedies of Minn. Stat. §13.08 apply to the release of the data referred to in this clause by any party. If Licensee receives a request to release data, Licensee must immediately notify the City. The City will give the Licensee instructions concerning the release of the data to the requesting party before the data is released. Licensee must comply with City’s instructions related to data requests under this section. 16. Liability and Insurance. (a) Indemnification by Licensee. Licensee agrees to defend, indemnify and hold harmless the City and its elected officials, officers, employees, agents, contractors and representatives, from and against any and all claims, costs, losses, expenses, demands, actions, or causes of action, including reasonable attorneys’ fees and other costs and expenses of litigation (collectively “Damages”), that may be asserted against or incurred by the City or for which the City may be liable in the performance of this Agreement, whether arising from the negligence intentional acts of the City, its respective employees, agents or contractors, Licensee, or a third party. Licensee shall further defend and indemnify all claims arising out City Council Meeting of December 21, 2015 (Item No. 4c) Page 9 Title: Fiber Lease Agreements of the installation, operation, use, maintenance, repair, or removal of the Licensed Fibers as may be required by this Agreement. (b) Licensee shall obtain and maintain during the term of this Agreement, General Liability Insurance with single-occurrence liability limits of One Million Five Hundred Thousand Dollars ($1,500,000.00), naming the Town as an additional insured. (c) Notwithstanding anything to the contrary in this Agreement, in no event will City be liable to Licensee for punitive, indirect, incidental, special or consequential damages, including, without limitation, loss of profits, income or business opportunities. 17. Events of Default. Each of the following events shall constitute an event of default (whether any such event shall be voluntary or involuntary or occur by operation of law or pursuant to any judgment, decree, order, rule or regulation of any court or administrative or governmental body): (a) The failure of Licensee to pay any License Fee when due or any other payment due hereunder and the continuation of such failure for thirty (30) days after written notice is given by City demanding such payment; (b) If either party fails to observe or performs its obligations under this Agreement and does not cure such failure within thirty (30) days from its receipt of written notice of breach without, however, limiting any other rights available to the parties pursuant to any other provision of this Agreement. If the default may not be reasonably cured within such thirty (30) day period, either party may request the other party to grant an extension of the time to cure not to exceed ninety (90) days, consent to such extension not to be unreasonably withheld. (c) The failure of Licensee to carry and maintain insurance in compliance with all provisions of this Agreement. (d) The Licensee shall cease to have any of the licenses, agreement, certificates, concessions, permits, rights or privileges required for the conduct of its business and operations which loss is not remedied by the obtaining of a replacement license, agreement, certificate, concession, permit, right or privilege within sixty (60) days of the loss thereof, if such loss would have a material adverse effect upon the ability of the Licensee to perform its obligations or enjoy its rights hereunder. (e) Licensee shall admit in writing an inability to pay its debts as such debts become due or Licensee shall (1) apply for or consent to the appointment of, or the taking of possession by, a receiver, administrator, custodian, trustee or liquidator of itself or of all or a substantial part of its property or assets, (2) make a general assignment for the benefit of its creditors, (3) commence a voluntary case under the U.S. Bankruptcy Code, (4) file a petition or otherwise commence a proceeding under any bankruptcy, insolvency reorganization winding-up, or composition or readjustment of debts or similar law, (5) fail to controvert in a timely and appropriate manner, or acquiesce in writing to, any petition filed against it in an involuntary case under the U.S. Bankruptcy Code, or (6) take any action for the purpose of effecting any of the foregoing; or a proceeding or case shall be commenced, without the application or consent of Licensee, in any court of competent jurisdiction, seeking (1) its liquidation, reorganization, dissolution or winding-up, or the composition or readjustment of its debts, (2) the appointment of a trustee, receiver, administrator, custodian, liquidator or the like of Licensee or of all or any substantial part of its assets, or (3) similar relief in respect of any law relating to bankruptcy, insolvency, reorganization, winding-up, or composition or readjustment of debts, which proceeding is not dismissed within ninety (90) days thereafter. 18. Rights Upon Default. City Council Meeting of December 21, 2015 (Item No. 4c) Page 10 Title: Fiber Lease Agreements (a) Upon the occurrence of a default by Licensee, the City may forthwith terminate this Agreement or any particular Route Segment by thirty (30) days written notice to Licensee. The right of the City to terminate a specific Route Segment or this Agreement shall be in addition to, and not in substitution for, any other rights that the City may have at law or equity as a result of a default by Licensee. (b) Upon the occurrence of a default by the City, Licensee shall be entitled to terminate this Agreement or any particular Route Segment by thirty (30) days written notice to the City. Unless otherwise explicitly set forth in this Agreement, this shall constitute Licensee's sole remedy for the City's default. 19. Remedies. Upon the occurrence and during the continuance of any event of default, the non- defaulting party may, at its option, declare this Agreement to be in default and may, in addition to any other remedies provided herein, terminate this Agreement. No remedy is intended to be exclusive, but each shall be cumulative and in addition to and may be exercised concurrently with any other remedy available to City or Licensee at law or in equity. 20. Termination. (a) Licensee's Liability for Early Termination. If Licensee terminates this Agreement as to all or any Licensed Fibers for any reason, the Licensee shall pay to the City as liquidated damages for early termination, one hundred fifty percent (150%) of the applicable annual Maintenance Fees for the applicable Licensed Fibers for the year in which Licensee terminates ("Termination Fee"). All Maintenance Fees previously paid to the City shall be retained by the City. (b) Removal of Licensee's Equipment. Upon termination of this Agreement for any reason, Licensee shall remove all of Licensee's Equipment within ninety (90) days of the notice provided pursuant to Section 20 of this Agreement or within 90 days of the end of the Term, whichever occurs first. In the event Licensee does not remove said Equipment within the applicable timeframe, Licensee hereby authorizes the City to immediately remove and dispose of all Equipment, and the City shall not be liable to Licensee for any costs or reimbursements associated with the Equipment. 21. Force Majeure Events. Neither party shall be liable to the other for any failure of performance under this Agreement due to causes beyond its control, including but not limited to: acts of God, fire, flood or other catastrophes; any law, order, regulation, direction, action or request of the United States Government, or of any other government, including state and local governments having or claiming jurisdiction over such party, or of any department, agency, commission, bureau, corporation or other instrumentality of any one or more of these federal, state or local governments, or of any civil or military authority; national emergencies; insurrections; riots; wars; permitting authorities, pole or right-of-way owners; or strikes, lock outs, work stoppages or other labor difficulties (collectively, "FORCE MAJEURE EVENTS"). 22. Rights and Obligations of Licensee. In addition to the rights and obligations of Licensee set forth elsewhere in this Agreement, Licensee shall: (a) have full and complete control, responsibility and liability for the signals distributed over the fiber optic components of the Licensed Fibers licensed by Licensee or for its benefit; (b) have full and complete control, responsibility and liability for the purchase, installation, construction and maintenance of the Licensee's Equipment; City Council Meeting of December 21, 2015 (Item No. 4c) Page 11 Title: Fiber Lease Agreements (c) have full and complete control, responsibility and liability for obtaining and maintaining any operating authority from any federal, state or local governmental body or agency that relates to the activities of Licensee under this Agreement, including Licensee's license of channel capacity on the Licensed Fibers. 23. Access and Security. (a) The City agrees to allow Licensee direct ingress and egress to the City’s property at such times as may be required for Licensee to perform any appropriate testing, maintenance and repair on Licensee’s Equipment. The City may require that a representative of the City accompany any representatives of Licensee on such visits to the City property. Employees and agents of Licensee or of a Licensee designee shall, while on the property of the City, comply with all rules and regulations including, without limitation, security/safety requirements and, where required by government regulations, receipt of satisfactory governmental clearances. The City shall have the right to notify Licensee that certain Licensee or Licensee designated employees are excluded if, in the reasonable judgment of the City, the exclusion of such employees is necessary for the proper security and maintenance of the City's facilities. (b) Notwithstanding the provisions of this Section, each party acknowledges that the operational efficiency of the other depends on the continuous availability of its trained personnel and, accordingly, both parties will act cooperatively to resolve any situations which may arise that threaten the security, operations or maintenance of either party's facilities prior to excluding any personnel. 24. Assignment. Licensee may not assign, transfer, delegate or in any other manner dispose of, any of its rights, privileges or obligations under this Agreement without the express written consent of City. 25. Forum for Litigation. In the event that litigation is required in order to resolve any dispute or disagreement connected with this Agreement, it is agreed by and between the parties hereto that venue and jurisdiction for any such litigation shall be in Hennepin County, Minnesota. Unless otherwise provided by law, any and all litigation between the parties hereto arising out of this Agreement shall be instituted and maintained in a court of competent jurisdiction in Hennepin County, Minnesota. Any cause of action arising by virtue of the laws of the United States shall be instituted in a court of competent jurisdiction in the State of Minnesota. 26. Miscellaneous. (a) Counterparts. This Agreement may be executed in counterparts each of which shall be deemed an original and all of which together shall constitute one and the same instrument, and in pleading or proving any provision of this Agreement, it shall not be necessary to produce more than one complete set of such counterparts. (b) Captions; Gender. Article and section headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. Whenever used herein the singular number shall include the plural, the plural shall include the singular, and the use of any gender shall include all genders. (c) Governing Law and Binding Effect. This Agreement shall be construed and enforced in accordance with, and the validity and performance hereof shall be governed by the laws of the State of Minnesota. This Agreement shall bind and inure to the benefit of each of the parties and their successors and permitted assigns. City Council Meeting of December 21, 2015 (Item No. 4c) Page 12 Title: Fiber Lease Agreements (d) Waivers and Amendments. This Agreement may not be amended nor shall any waiver, change, modification, consent or discharge be effected, except by an instrument in writing adopted, in the case of an amendment, by each party and, in the case of a waiver, consent or discharge, by the party against whom enforcement of such instrument is sought. Any consent by either party to, or waiver of, a breach by the other party shall not constitute a waiver or consent to any subsequent or different breach. If either party shall fail to enforce a breach of this Agreement by the other party, such failure to enforce shall not be considered a consent to or a waiver of said breach or any subsequent breach for any purpose whatsoever. (e) Relationship Not a Partnership or an Agency. The relationship between Licensee and City shall not be that of partners or agents for one another and nothing contained in this Agreement shall be deemed to constitute a partnership, joint venture or agency agreement between them. (f) Notices. All notices, requests, demands, statements, reports and other communications under this Agreement shall be in writing and deemed to be duly delivered, if delivered in person, by overnight courier or by certified or registered mail: If to City: City of St. Louis Park 5005 Minnetonka Boulevard St. Louis Park, MN 55416 Attn: , Chief Information Officer With a copy to: St. Louis Park City Attorney Campbell Knutson, PA Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, MN 55121 If to Licensee: With a copy to: Their Attorney Either party hereto may change its mailing address by giving notice to the other pursuant to the provisions of this paragraph. (g) Disclaimers. There are no agreements, warranties or representations, express or implied either in fact or by operation of law, statutory or otherwise, including warranties of merchantability and fitness for a particular purpose or use, except those expressly set forth herein. (h) Entire Agreement. This Agreement, including the exhibits, schedules and annexes hereto, which are hereby incorporated by reference and made a part of this Agreement as if they were fully set forth herein, constitutes the entire agreement between City and Licensee with respect to the subject matter hereof and supersedes all prior agreements and understandings between them as to such subject matter, and there are no restrictions, agreements, arrangements or City Council Meeting of December 21, 2015 (Item No. 4c) Page 13 Title: Fiber Lease Agreements undertaking, oral or written, between City and Licensee relating to the transactions contemplated hereby which are not fully expressed or referred to herein. (i) Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule or law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner adverse to either party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the greatest extent possible. IN WITNESS WHEREOF, and intending to be legally bound, the parties have executed this Agreement on the dates indicated below. CITY OF ST. LOUIS PARK Dated: BY: Name: ___________________________ Title: Mayor Dated: BY: Name: Melissa Kennedy Title: City Clerk STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of ________________, 20____, by _________________ and by Melissa Kennedy, the Mayor and City Clerk, respectively, of the City of St. Louis Park, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public City Council Meeting of December 21, 2015 (Item No. 4c) Page 14 Title: Fiber Lease Agreements LICENSEE: Dated: BY: Name: Title: STATE OF MINNESOTA ) ) ss. COUNTY OF _____________ ) The foregoing instrument was acknowledged before me this ____ day of ________________, 20____, by __________________________, the _______________________, of ___________________________, a __________________________________, on behalf of __________________________________. Notary Public THIS INSTRUMENT WAS DRAFTED BY: CITY OF ST. LOUIS PARK 5005 Minnetonka Boulevard St. Louis Park, MN 55416 Telephone: (952) 924-2500 City Council Meeting of December 21, 2015 (Item No. 4c) Page 15 Title: Fiber Lease Agreements EXHIBIT A Designation of Licensed Route Segments, Splice Vaults, and Licensed Fiber Stands City Council Meeting of December 21, 2015 (Item No. 4c) Page 16 Title: Fiber Lease Agreements EXHIBIT B City Network Fiber Acceptance Testing Procedures and Standards The intent of this Exhibit is to identify the fiber acceptances testing procedures and standards used within the City Network. Deviations from these specifications may occur if City acquires a portion of the City Network from a third party pursuant to the Agreement. 1. All splices shall be fusion spliced. Mechanical splices are only allowed during temporary restoration and will be replaced within three (3) business days, with fusion splices. 2. Fibers shall be terminated with _________ connectors (typical return loss of 0.50 dB). 3. After end-to-end connectivity on the fibers has been completed, bi-directional OTDR span and power meter testing will be completed. City shall perform tests after the fiber cable is installed and the splicing enclosures have been completed and are in their final resting configuration with the cable vault or hand hole covers closed. This ensures that no micro or macro bending problems with the cable or fiber strands will contribute to the loss/attenuation measurements. 4. Power meter tests shall be completed to verify and insure that no fibers have been crossed at any of the splice points within the network. City shall test and record power level readings on all fiber strands in both directions of transmission (bi-directionally) using the 1310 & 1550 nm wavelengths. 5. All OTDR and power meter tests shall be completed as follows: a. All OTDR traces shall be taken from both ends of a section (between adjacent Locations) and recorded using the 1310 & 1550 nm wavelength. Loss/attenuation measurements for each splice point from both directions shall be taken and recorded. b. The end-to-end loss value as measured with an industry-accepted laser source and power meter should have an attenuation rating of less than or equal to the following: (1) At 1310 nm: (0.35 dB/km x km of cable) +(number of connectors x 0.50) + (0.05 x number of splices). (2) At 1550 nm: (0.25 dB/km x km of cable)+ (number of connectors x 0.50) + (0.05 x number of splices). c. City's loss/attenuation objective for each fiber optic splice is 0.05 dB when measured in one direction with an OTDR test set (excluding connector loss, which is typically 0.50 dB per mated connector pair). If after three attempts this parameter is not met, the splice will be marked as Out-Of-Spec (OOS) and the splice will remain provided the average loss/attenuation value of all splices on an individual fiber basis shall not exceed 0.10 dB for the entire ring or subsystem. d. For bi-directional OTDR testing, the distance from Location "A" and Location "Z" shall be recorded for each splice point. The loss/attenuation at each splice point shall be recorded at both wavelengths (1310 nm & 1550 nm) in each direction. City shall then average the two readings to obtain the final average splice loss/attenuation for each splice point of each fiber strand within the fiber optic cable. e. Each fiber strand color must be recorded along with its buffer tube color or the ribbon color. The laser source transmit power level using the 1310 & 1550 nm wavelengths will always be recorded together with the receive power level reading at the receiving end of the test. 6. OTDR traces will be taken and splice loss measurements recorded. City will store OTDR traces on electronic media. Loss measurements will be recorded using an industry accepted laser source and a power meter. Copies of all data sheets and tables and one set of diskettes with all traces will be available to Licensee. 7. Following emergency restoral, City personnel shall perform span test documenting end to end attenuation measurement of each fiber and will be completed in both directions at 1310 & 1550 nm wavelengths. Upon permanent repair, new splice loss readings should be approximately the original splice loss specifications. City Council Meeting of December 21, 2015 (Item No. 4c) Page 17 Title: Fiber Lease Agreements EXHIBIT C City Fiber Building and Location on the Fiber Equipment Rack (if applicable) City Council Meeting of December 21, 2015 (Item No. 4c) Page 18 Title: Fiber Lease Agreements EXHIBIT D Maintenance Specifications 1. Notice. City shall provide Licensee with telephone, facsimile, or written notice of all non-emergency planned network maintenance no later than seven (7) business days prior to performing maintenance that, in its reasonable opinion, has a substantial likelihood of affecting Licensee's traffic. If City's planned activity is canceled or delayed, City shall promptly notify Licensee and shall comply with the provisions of the previous sentence to reschedule any delayed activity. 2. Standard of Care; Cooperation. In performing its services hereunder, City shall take workmanlike care and make commercially reasonable efforts to prevent impairment to the signal continuity and performance of the Licensed Fibers. In addition, City shall reasonably cooperate with Licensee in sharing information and analyzing the disturbances regarding the cable and/or fiber facilities. 3. Licensee's Equipment. Nothing contained herein shall make City responsible for the Licensee's Equipment. 4. Escalation List. City shall, at Licensee's request, provide Licensee an operations escalation list for use in reporting and seeking redress of exceptions noted in City's performance of routine maintenance and non-routine maintenance City Council Meeting of December 21, 2015 (Item No. 4c) Page 19 Title: Fiber Lease Agreements 5. DARK FIBER AGREEMENT SHORT TERM LICENSE THIS LICENSE AGREEMENT (“Agreement”) is made as of the ____ day of ______________, by and between the CITY OF ST. LOUIS PARK, a municipal corporation under the laws of the State of Minnesota, (“City”), whose address is 5005 Minnetonka Boulevard, St. Louis Park, MN 55416, and _______________________________, a ______________________________________, having its principal address at __________________________________________________________(“Licensee”). RECITALS: WHEREAS, the City, Independent School District #283, and Local Government Information Systems have constructed a shared fiber optic network throughout portions of the City of St. Louis Park, the City portion of which is the subject of this agreement (“City Network”); and WHEREAS, the City is willing, subject to the terms, covenants and conditions set forth in this Agreement, to grant to Licensee a license for the operation and use of certain City Dark Fiber in the City Network to Licensee, and Licensee desires to license, subject to the terms, covenants and conditions of this Agreement, the use of certain City Dark Fiber in the City Network. NOW THEREFORE, in consideration of the foregoing, and of the promises and covenants contained in this Agreement, the parties agree as follows: 1. Scope of Dark Fiber License. The City hereby grants to Licensee on an exclusive basis the right to use the strand or strands of the City Dark Fiber described in Exhibit A, along the Route Segments described in Exhibit A, as the same may be amended from time to time according to the terms of this Agreement (the “Licensed Fibers”). This license agreement authorizes Licensee to use the Licensed Fibers in accordance with the terms of this Agreement. 2. Effective Date and Term. This short-term per strand/per mile/per month Agreement shall become effective as of the date that the City executes this Agreement (“Commencement Date”) and shall remain in effect unless and until terminated in accordance with the termination provisions of this Agreement. The term of this Agreement (“Term”) shall be for a period of _____[2-5 years]____ from and after the Commencement Date unless terminated earlier according to the terms of this Agreement. The Licensed Fibers, identified in Exhibit A, may be changed from time to time in writing signed by the City and Licensee, as specified in the applicable amended Exhibit A, which shall be attached to this Agreement. The amended Exhibit A shall have its own term, which term shall commence on the date that the City executes the applicable amended Exhibit A and end on the Termination Date. 3. Definitions. For purposes of this Agreement, the terms set forth below shall be defined as follows: Acceptance Test - The tests conducted on the Licensed Fibers by the Licensee to ensure that the Licensed Fibers meet or exceed the City Dark Fiber Specifications outlined in Exhibit B. City Conduit - The City-owned conduit in which the City Dark Fiber is located. City Dark Fiber - All Dark Fiber owned by the City whether dedicated for the City's use only or whether used by the City, Licensee or a third party. City Fiber Building – The building(s) located within the City of St. Louis Park, MN in which the City Conduit is connected and the Fiber Equipment rack is located. City Council Meeting of December 21, 2015 (Item No. 4c) Page 20 Title: Fiber Lease Agreements Dark Fiber - Unused Fiber through which no light is transmitted. Fiber Equipment Rack – the equipment rack within the City Fiber Building on which the Licensee is allowed to mount their equipment and connect to the Licensed Fibers (if this agreement permits). Fiber Acceptance Date - The date of the applicable Notice of Acceptance which evidences that the Licensed Fibers in the applicable Route Segments as defined in each Exhibit A have passed the Acceptance Test and have met the conditions of Section 6. License Fee - The License Fee shall mean the Fiber License Fee as set forth in Section 4(a) of this Agreement. Licensed Fibers - shall have the definition set forth in Section 1 of this Agreement. Licensee Equipment Location - Locations where Licensee's Equipment will be installed within the City Fiber Building and Fiber Equipment Rack enclosures and Licensee's Equipment will be installed as outlined in Exhibit C (if this agreement permits). Fiber meet points (indoor and outdoor) are flexible, but also include clear demarcation and access points. Licensee's Equipment - The Licensee's terminals and peripheral equipment or facilities used with or connected to the Licensed Fibers which may be located on City's property pursuant to a separate agreement or on Licensee's own land or that of a third party. Notice of Acceptance - Licensee's written approval that the Licensed Fibers have passed the Acceptance Test. The Notice of Acceptance shall define the effective date for the Term of the Route Segment set forth in Exhibit A. Route Segment - That portion of the City's Conduit containing the Licensed Fibers installed between the identified Splice Vaults as set forth in Exhibit A. Splice Vault - The vaults installed by the City in the City Network where the City, the Licensee and other users of the City Network can splice into the City Conduit and/or the City Dark Fiber. 4. Price and Payment. (a) Licensee shall pay the City a short-term license fee for the use of the Licensed Fibers provided by the City ("License Fee") which License Fee shall commence on the Fiber Acceptance Date. The License Fee payable to the City for the Licensed Fibers shall be $________________________________________________________ per strand per mile per month. The License Fee shall be payable quarterly, in advance, on the first day of each calendar quarter commencing on the Fiber Acceptance Date for the Route Segment. Should the Fiber Acceptance Date be any date other than the first day of any calendar quarter, then that initial quarter’s License Fee and the final quarter’s License Fees shall be prorated based on the actual date. (b) Licensee shall pay the City for Licensee’s share of federal or state taxes, if any, which may be imposed on the Licensed Fibers during the term of this Agreement. (c) Licensee shall pay all License Fees, by check in the amount set forth on the statement sent to the Licensee by the City. The Licensee shall pay to the City a late payment fee of five percent (5%) of the amount of any License Fee payment that is overdue by more than ten (10) days ("Late Payment Fee"). (d) All payments due from either party to the other under the terms of this Agreement which are not paid when due shall bear interest from the due date until paid at an interest rate equal to the lesser of 1-1/2% per month or the maximum lawful rate permitted by law. City Council Meeting of December 21, 2015 (Item No. 4c) Page 21 Title: Fiber Lease Agreements 5. Acceptance Testing and Completion of Licensed Fibers. (a) Upon Licensee's request, prior to the Licensee's splicing into the applicable City Dark Fiber, the City shall have the Licensed Fibers tested at the Licensee's sole cost and expense in accordance with the procedures and standards specified in Exhibit B ("Acceptance Testing"). City shall give Licensee five (5) business days prior notice of the time and location of the Acceptance Testing, and Licensee shall have the right, but not the obligation, to be present to observe the Acceptance Testing. City shall provide Licensee with a copy of such test results. City shall deliver the Licensed Fibers to Licensee in conformance with the fiber specifications set forth in Exhibit B. (b) Licensee shall be responsible for the timely completion of any work or installation required to place the Licensed Fibers into operation. Licensee's failure to complete such work shall not be grounds for rejection of a Completion Notice. (c) Upon the successful completion of Acceptance Testing, the City shall provide written notice to Licensee (a "Completion Notice"). City shall contemporaneously deliver a copy of the results of the Acceptance Testing and Licensee shall, within fifteen (15) days of receipt of the Completion Notice, either accept or reject the Completion Notice. Licensee shall be permitted to reject only if Licensee specifies the failure of the Licensed Fibers to satisfy the requirements of this Agreement by written notice to City. Licensee's written acceptance shall constitute the Notice of Acceptance. In the event Licensee rejects the Completion Notice, City shall promptly, and at no cost to Licensee, remedy the defect or failure specified in Licensee's notice. Thereafter City shall again conduct Acceptance Testing and, if successfully completed, provide Licensee a Completion Notice. The foregoing procedure shall apply again and successively thereafter until City has remedied all defects or failures specified by Licensee. Any failure by Licensee to timely reject a Completion Notice, or any use of the Licensed Fibers by Licensee for any purpose other than testing, shall be deemed to constitute acceptance for purposes of this Agreement and Licensee shall be deemed to have delivered a Notice of Acceptance upon the earlier of (i) such use or (ii) the fifteenth (15th) day after delivery of the Completion Notice. 6. Use of Licensed Fibers; Access. Licensee shall not use the Licensed Fibers in violation of this Agreement, any applicable law, rule, regulation or order of any governmental authority having jurisdiction, or any franchise, license, agreement or certificate related to the City Network, unless the validity thereof is being contested in good faith and by appropriate proceedings (but only so long as such proceedings and Licensee's use of the Licensed Fibers does not, in City's reasonable opinion, involve any risk of the forfeiture, or loss of the City Network or the City of any other license of the City Dark Fiber, or any part thereof or any interest therein). 7. Performance and Maintenance. City shall maintain the Licensed Fibers pursuant to Exhibit D, so that at all times the Licensed Fibers perform in accordance with the standards set forth in Exhibit B. Inspection and maintenance of the Licensed Fibers will be conducted by City or its subcontractors upon the request of Licensee unless prior arrangements have been made between City and Licensee. The Licensee shall be responsible for all cost of the City relating to the inspection and maintenance of the Licensed Fibers requested by the Licensee and the Licensee shall pay the City for said cost within thirty (30) days of the City invoicing the Licensee. 8. Ownership and Title. All ownership, rights, title and interest in all the Licensed Fibers shall at all times remain exclusively with the City. All right, title and interest in the Licensee's Equipment shall at all times remain exclusively that of the Licensee. 9. Liens and Encumbrances. Neither party, directly or indirectly, shall create or impose any lien on the property of the other or on the rights or title relating thereto or any interest therein or in this Agreement. City Council Meeting of December 21, 2015 (Item No. 4c) Page 22 Title: Fiber Lease Agreements 10. Representations and Covenants Regarding Authorizations. (a) Licensee hereby represents, warrants and covenants to City as follows: a. Licensee is duly organized, validly existing and in good standing under the laws of the State of Minnesota and has full power and authority to execute, deliver and perform the terms of this Agreement. b. Licensee has or will use its best commercial efforts to obtain and maintain all rights, licenses, governmental regulatory approvals, authorizations, rights-of-way, and other agreements and permissions necessary for the use of the Licensed Fibers, or Licensee's Equipment, as well as any other such rights, licenses, authorizations, rights-of-way, and other agreements, easements, or permissions necessary for the installation and use of the Licensed Fibers. Licensee shall be solely liable for all costs related thereto. c. Licensee covenants that its use of the Licensed Fibers shall at all times be in compliance with law and that Licensee has received and is in compliance with all regulatory authorizations. d. Licensee shall be responsible for and shall pay all taxes or fees, including, but not limited to, franchise fees imposed by any other governmental agency or authority as a result of Licensee’s operation or use of the Licensed Fibers pursuant to this Agreement. The City represents and warrants that with respect to any Licensed Fibers pursuant to this Agreement the City has obtained any and all necessary rights of way or other authorizations by whatever name, such that the City is legally permitted to own, use and license the Licensed Fibers; the City shall grant Licensee whatever permission is necessary such that the Licensee may benefit from such authorizations. With respect to any additional authorization required of Licensee to install or operate the Licensed Fibers, Licensee shall, at its own expense, obtain all municipal street rights and/or property leases that may be required for the construction or operation of the Licensed Fibers thereof by Licensee. (b) City hereby represents, warrants and covenants to Licensee as follows: a. City is duly organized and validly existing under the laws of its State of Minnesota and has full power and authority to execute, deliver and perform the terms of this Agreement. (i) City has obtained and will maintain all rights, licenses, governmental regulatory approvals, authorizations, rights-of-way, and other agreements and permissions necessary for the use of the Licensed Fibers, and the City Network including such rights, licenses, authorizations, rights-of-way, and other agreements, easements, or permissions necessary for the installation of the City Network and use of the Licensed Fibers. City shall be solely liable for all costs related thereto. 11. Compliance with Law. Each party shall perform its respective rights and obligations hereunder in accordance with all applicable laws, rules and regulations imposed by any governmental authority. 12. Access to the City Fiber Building and the Licensed Fibers. The City shall provide Licensee with reasonable access (as determined solely by the City) to the City Fiber Building and the Licensed City Council Meeting of December 21, 2015 (Item No. 4c) Page 23 Title: Fiber Lease Agreements Fibers shown on Exhibit A as described within Section 25 upon the execution of this Agreement by the City and the Licensee. 13. Relocation of the Licensed Fiber. Licensee recognizes that, from time to time, City may elect or be required to relocate the Licensed Fibers and/or City Conduit, whether such relocation is for the convenience of City or is a requirement by law or existing contract or by loss of right-of-way. In these instances, the City shall be solely responsible for all costs incurred to relocate the Licensed Fibers except for the cost related to the Licensee splicing into the new Licensed Fiber. For any other relocation, Licensee shall pay its proportional share of the cost, defined as the number of Licensed Fibers divided by the total number of City Dark Fiber and Licensee Dark Fiber in any given Route Segment. City will use commercially reasonable efforts to effect any relocation in a manner that will not cause any material interruption to Licensee's use of the Licensed Fibers. 14. Condemnation and Casualty. (a) Condemnation. If all or any portion of the Licensed Fibers are taken for any public or quasi- public purpose by any lawful power or authority by the exercise of the right of condemnation or eminent domain, the City and the Licensee shall be entitled to terminate this Agreement with respect to the Licensed Fibers affected, or if such condemnation materially affects the intended purpose of the Licensed Fibers, then Licensee may terminate the Agreement in its entirety. In such event, both parties shall be entitled to participate in any condemnation proceedings to seek to obtain compensation by separate awards for the economic value of their respective interests in the City Dark Fiber or the Licensed Fibers. (b) Casualty. If all or any portion of the City Dark Fiber, the City Conduit or the Licensed Fibers are made inoperable and beyond feasible repair due to a casualty or other Force Majeure Event (as that term is defined in Section 24 below), Licensee shall be entitled to terminate this Agreement with respect to the applicable Licensed Fibers affected by such casualty or other event. In such event, both parties shall be entitled to seek to recover the economic value of their respective interests in the City Dark Fiber, the City Conduit or the Licensed Fibers (i) under any insurance policy carried by either party or any third party, or (ii) in either joint or separate actions, from any third party that may be legally responsible for causing such casualty. 15. Government Data Practices. The parties must comply with the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as it applies to all data provided by each party under this Agreement, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by any party under this Agreement. The civil remedies of Minn. Stat. §13.08 apply to the release of the data referred to in this clause by any party. If Licensee receives a request to release data, Licensee must immediately notify the City. The City will give the Licensee instructions concerning the release of the data to the requesting party before the data is released. Licensee must comply with City’s instructions related to data requests under this section. 16. Liability and Insurance. (a) Indemnification by Licensee. Licensee agrees to defend, indemnify and hold harmless the City and its elected officials, officers, employees, agents, contractors and representatives, from and against any and all claims, costs, losses, expenses, demands, actions, or causes of action, including reasonable attorneys’ fees and other costs and expenses of litigation (collectively “Damages”), that may be asserted against or incurred by the City or for which the City may be liable in the performance of this Agreement, whether arising from the negligence intentional acts of the City, its respective employees, agents or contractors, Licensee, or a third party. Licensee shall further defend and indemnify all claims arising out of the installation, operation, use, maintenance, repair, or removal of the Licensed Fibers as may be required by this Agreement. City Council Meeting of December 21, 2015 (Item No. 4c) Page 24 Title: Fiber Lease Agreements (b) Licensee shall obtain and maintain during the term of this Agreement, General Liability Insurance with single-occurrence liability limits of One Million Five Hundred Thousand Dollars ($1,500,000.00), naming the Town as an additional insured. (c) Notwithstanding anything to the contrary in this Agreement, in no event will City be liable to Licensee for punitive, indirect, incidental, special or consequential damages, including, without limitation, loss of profits, income or business opportunities. 17. Events of Default. Each of the following events shall constitute an event of default (whether any such event shall be voluntary or involuntary or occur by operation of law or pursuant to any judgment, decree, order, rule or regulation of any court or administrative or governmental body): (a) The failure of Licensee to pay any License Fee when due or any other payment due hereunder and the continuation of such failure for thirty (30) days after written notice is given by City demanding such payment; (b) If either party fails to observe or performs its obligations under this Agreement and does not cure such failure within thirty (30) days from its receipt of written notice of breach without, however, limiting any other rights available to the parties pursuant to any other provision of this Agreement. If the default may not be reasonably cured within such thirty (30) day period, either party may request the other party to grant an extension of the time to cure not to exceed ninety (90) days, consent to such extension not to be unreasonably withheld. (c) The failure of Licensee to carry and maintain insurance in compliance with all provisions of this Agreement. (d) The Licensee shall cease to have any of the licenses, agreement, certificates, concessions, permits, rights or privileges required for the conduct of its business and operations which loss is not remedied by the obtaining of a replacement license, agreement, certificate, concession, permit, right or privilege within sixty (60) days of the loss thereof, if such loss would have a material adverse effect upon the ability of the Licensee to perform its obligations or enjoy its rights hereunder. (e) Licensee shall admit in writing an inability to pay its debts as such debts become due or Licensee shall (1) apply for or consent to the appointment of, or the taking of possession by, a receiver, administrator, custodian, trustee or liquidator of itself or of all or a substantial part of its property or assets, (2) make a general assignment for the benefit of its creditors, (3) commence a voluntary case under the U.S. Bankruptcy Code, (4) file a petition or otherwise commence a proceeding under any bankruptcy, insolvency reorganization winding-up, or composition or readjustment of debts or similar law, (5) fail to controvert in a timely and appropriate manner, or acquiesce in writing to, any petition filed against it in an involuntary case under the U.S. Bankruptcy Code, or (6) take any action for the purpose of effecting any of the foregoing; or a proceeding or case shall be commenced, without the application or consent of Licensee, in any court of competent jurisdiction, seeking (1) its liquidation, reorganization, dissolution or winding-up, or the composition or readjustment of its debts, (2) the appointment of a trustee, receiver, administrator, custodian, liquidator or the like of Licensee or of all or any substantial part of its assets, or (3) similar relief in respect of any law relating to bankruptcy, insolvency, reorganization, winding-up, or composition or readjustment of debts, which proceeding is not dismissed within ninety (90) days thereafter. City Council Meeting of December 21, 2015 (Item No. 4c) Page 25 Title: Fiber Lease Agreements 18. Rights Upon Default. (a) Upon the occurrence of a default by Licensee, the City may forthwith terminate this Agreement or any particular Route Segment by thirty (30) days written notice to Licensee. The right of the City to terminate a specific Route Segment or this Agreement shall be in addition to, and not in substitution for, any other rights that the City may have at law or equity as a result of a default by Licensee. (b) Upon the occurrence of a default by the City, Licensee shall be entitled to terminate this Agreement or any particular Route Segment by thirty (30) days written notice to the City. Unless otherwise explicitly set forth in this Agreement, this shall constitute Licensee's sole remedy for the City's default. 19. Remedies. Upon the occurrence and during the continuance of any event of default, the non- defaulting party may, at its option, declare this Agreement to be in default and may, in addition to any other remedies provided herein, terminate this Agreement. No remedy is intended to be exclusive, but each shall be cumulative and in addition to and may be exercised concurrently with any other remedy available to City or Licensee at law or in equity. 20. Termination. (a) Licensee's Liability for Early Termination. If Licensee terminates this Agreement as to all or any Licensed Fibers for any reason, the Licensee shall pay to the City as liquidated damages for early termination, one hundred fifty percent (150%) of the applicable annual License Fees for the applicable Licensed Fibers for the year in which Licensee terminates ("Termination Fee"). All License Fees previously paid to the City shall be retained by the City. (b) Removal of Licensee's Equipment. Upon termination of this Agreement for any reason, Licensee shall remove all of Licensee's Equipment within ninety (90) days of the notice provided pursuant to Section 20 of this Agreement or within 90 days of the end of the Term, whichever occurs first. In the event Licensee does not remove said Equipment within the applicable timeframe, Licensee hereby authorizes the City to immediately remove and dispose of all Equipment, and the City shall not be liable to Licensee for any costs or reimbursements associated with the Equipment. 21. Force Majeure Events. Neither party shall be liable to the other for any failure of performance under this Agreement due to causes beyond its control, including but not limited to: acts of God, fire, flood or other catastrophes; any law, order, regulation, direction, action or request of the United States Government, or of any other government, including state and local governments having or claiming jurisdiction over such party, or of any department, agency, commission, bureau, corporation or other instrumentality of any one or more of these federal, state or local governments, or of any civil or military authority; national emergencies; insurrections; riots; wars; permitting authorities, pole or right-of-way owners; or strikes, lock outs, work stoppages or other labor difficulties (collectively, "FORCE MAJEURE EVENTS"). 22. Rights and Obligations of Licensee. In addition to the rights and obligations of Licensee set forth elsewhere in this Agreement, Licensee shall: (a) have full and complete control, responsibility and liability for the signals distributed over the fiber optic components of the Licensed Fibers licensed by Licensee or for its benefit; (b) have full and complete control, responsibility and liability for the purchase, installation, construction and maintenance of the Licensee's Equipment; City Council Meeting of December 21, 2015 (Item No. 4c) Page 26 Title: Fiber Lease Agreements (c) have full and complete control, responsibility and liability for obtaining and maintaining any operating authority from any federal, state or local governmental body or agency that relates to the activities of Licensee under this Agreement, including Licensee's license of channel capacity on the Licensed Fibers. 23. Access and Security. (a) The City agrees to allow Licensee direct ingress and egress to the City’s property at such times as may be required for Licensee to perform any appropriate testing, maintenance and repair on Licensee’s Equipment. The City may require that a representative of the City accompany any representatives of Licensee on such visits to the City property. Employees and agents of Licensee or of a Licensee designee shall, while on the property of the City, comply with all rules and regulations including, without limitation, security/safety requirements and, where required by government regulations, receipt of satisfactory governmental clearances. The City shall have the right to notify Licensee that certain Licensee or Licensee designated employees are excluded if, in the reasonable judgment of the City, the exclusion of such employees is necessary for the proper security and maintenance of the City's facilities. (b) Notwithstanding the provisions of this Section, each party acknowledges that the operational efficiency of the other depends on the continuous availability of its trained personnel and, accordingly, both parties will act cooperatively to resolve any situations which may arise that threaten the security, operations or maintenance of either party's facilities prior to excluding any personnel. 23. Assignment. Licensee may not assign, transfer, delegate or in any other manner dispose of, any of its rights, privileges or obligations under this Agreement without the express written consent of City. 24. Forum for Litigation. In the event that litigation is required in order to resolve any dispute or disagreement connected with this Agreement, it is agreed by and between the parties hereto that venue and jurisdiction for any such litigation shall be in Hennepin County, Minnesota. Unless otherwise provided by law, any and all litigation between the parties hereto arising out of this Agreement shall be instituted and maintained in a court of competent jurisdiction in Hennepin County, Minnesota. Any cause of action arising by virtue of the laws of the United States shall be instituted in a court of competent jurisdiction in the State of Minnesota. 25. Miscellaneous. (a) Counterparts. This Agreement may be executed in counterparts each of which shall be deemed an original and all of which together shall constitute one and the same instrument, and in pleading or proving any provision of this Agreement, it shall not be necessary to produce more than one complete set of such counterparts. (b) Captions; Gender. Article and section headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. Whenever used herein the singular number shall include the plural, the plural shall include the singular, and the use of any gender shall include all genders. (c) Governing Law and Binding Effect. This Agreement shall be construed and enforced in accordance with, and the validity and performance hereof shall be governed by the laws of the State of Minnesota. This Agreement shall bind and inure to the benefit of each of the parties and their successors and permitted assigns. City Council Meeting of December 21, 2015 (Item No. 4c) Page 27 Title: Fiber Lease Agreements (d) Waivers and Amendments. This Agreement may not be amended nor shall any waiver, change, modification, consent or discharge be effected, except by an instrument in writing adopted, in the case of an amendment, by each party and, in the case of a waiver, consent or discharge, by the party against whom enforcement of such instrument is sought. Any consent by either party to, or waiver of, a breach by the other party shall not constitute a waiver or consent to any subsequent or different breach. If either party shall fail to enforce a breach of this Agreement by the other party, such failure to enforce shall not be considered a consent to or a waiver of said breach or any subsequent breach for any purpose whatsoever. (e) Relationship Not a Partnership or an Agency. The relationship between Licensee and City shall not be that of partners or agents for one another and nothing contained in this Agreement shall be deemed to constitute a partnership, joint venture or agency agreement between them. (f) Notices. All notices, requests, demands, statements, reports and other communications under this Agreement shall be in writing and deemed to be duly delivered, if delivered in person, by overnight courier or by certified or registered mail: If to City: City of St. Louis Park 5005 Minnetonka Boulevard St. Louis Park, MN 55416 Attn: , Chief Information Officer With a copy to: St. Louis Park City Attorney Campbell Knutson, PA Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, MN 55121 If to Licensee: With a copy to: Their Attorney Either party hereto may change its mailing address by giving notice to the other pursuant to the provisions of this paragraph. (g) Disclaimers. There are no agreements, warranties or representations, express or implied either in fact or by operation of law, statutory or otherwise, including warranties of merchantability and fitness for a particular purpose or use, except those expressly set forth herein. (h) Entire Agreement. This Agreement, including the exhibits, schedules and annexes hereto, which are hereby incorporated by reference and made a part of this Agreement as if they were fully set forth herein, constitutes the entire agreement between City and Licensee with respect to the subject matter hereof and supersedes all prior agreements and understandings between City Council Meeting of December 21, 2015 (Item No. 4c) Page 28 Title: Fiber Lease Agreements them as to such subject matter, and there are no restrictions, agreements, arrangements or undertaking, oral or written, between City and Licensee relating to the transactions contemplated hereby which are not fully expressed or referred to herein. (i) Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule or law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner adverse to either party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the greatest extent possible. City Council Meeting of December 21, 2015 (Item No. 4c) Page 29 Title: Fiber Lease Agreements IN WITNESS WHEREOF, and intending to be legally bound, the parties have executed this Agreement on the dates indicated below. CITY OF ST. LOUIS PARK Dated: BY: Name: ___________________________ Title: Mayor Dated: BY: Name: Melissa Kennedy Title: City Clerk STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of ________________, by _________________ and by Melissa Kennedy, the Mayor and City Clerk, respectively, of the City of St. Louis Park, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public City Council Meeting of December 21, 2015 (Item No. 4c) Page 30 Title: Fiber Lease Agreements LICENSEE: Dated: BY: Name: Title: STATE OF MINNESOTA ) ) ss. COUNTY OF _____________ ) The foregoing instrument was acknowledged before me this ____ day of ________________, by __________________________, the _______________________, of ___________________________, a __________________________________, on behalf of __________________________________. Notary Public THIS INSTRUMENT WAS DRAFTED BY: CITY OF ST. LOUIS PARK 5005 Minnetonka Boulevard St. Louis Park, MN 55416 Telephone: (952) 924-2500 City Council Meeting of December 21, 2015 (Item No. 4c) Page 31 Title: Fiber Lease Agreements EXHIBIT A Designation of Licensed Route Segments, Splice Vaults, and Licensed Fiber Stands City Council Meeting of December 21, 2015 (Item No. 4c) Page 32 Title: Fiber Lease Agreements EXHIBIT B City Network Fiber Acceptance Testing Procedures and Standards The intent of this Exhibit is to identify the fiber acceptances testing procedures and standards used within the City Network. Deviations from these specifications may occur if City acquires a portion of the City Network from a third party pursuant to the Agreement. 1. All splices shall be fusion spliced. Mechanical splices are only allowed during temporary restoration and will be replaced within three (3) business days, with fusion splices. 2. Fibers shall be terminated with _________ connectors (typical return loss of 0.50 dB). 3. After end-to-end connectivity on the fibers has been completed, bi-directional OTDR span and power meter testing will be completed. City shall perform tests after the fiber cable is installed and the splicing enclosures have been completed and are in their final resting configuration with the cable vault or hand hole covers closed. This ensures that no micro or macro bending problems with the cable or fiber strands will contribute to the loss/attenuation measurements. 4. Power meter tests shall be completed to verify and insure that no fibers have been crossed at any of the splice points within the network. City shall test and record power level readings on all fiber strands in both directions of transmission (bi-directionally) using the 1310 & 1550 nm wavelengths. 5. All OTDR and power meter tests shall be completed as follows: a. All OTDR traces shall be taken from both ends of a section (between adjacent Locations) and recorded using the 1310 & 1550 nm wavelength. Loss/attenuation measurements for each splice point from both directions shall be taken and recorded. b. The end-to-end loss value as measured with an industry-accepted laser source and power meter should have an attenuation rating of less than or equal to the following: i. At 1310 nm: (0.35 dB/km x km of cable) +(number of connectors x 0.50) + (0.05 x number of splices). ii. At 1550 nm: (0.25 dB/km x km of cable)+ (number of connectors x 0.50) + (0.05 x number of splices). c. City's loss/attenuation objective for each fiber optic splice is 0.05 dB when measured in one direction with an OTDR test set (excluding connector loss, which is typically 0.50 dB per mated connector pair). If after three attempts this parameter is not met, the splice will be marked as Out-Of-Spec (OOS) and the splice will remain provided the average loss/attenuation value of all splices on an individual fiber basis shall not exceed 0.10 dB for the entire ring or subsystem. d. For bi-directional OTDR testing, the distance from Location "A" and Location "Z" shall be recorded for each splice point. The loss/attenuation at each splice point shall be recorded at both wavelengths (1310 nm & 1550 nm) in each direction. City shall then average the two readings to obtain the final average splice loss/attenuation for each splice point of each fiber strand within the fiber optic cable. e. Each fiber strand color must be recorded along with its buffer tube color or the ribbon color. The laser source transmit power level using the 1310 & 1550 nm wavelengths will always be recorded together with the receive power level reading at the receiving end of the test. 6. OTDR traces will be taken and splice loss measurements recorded. City will store OTDR traces on electronic media.· Loss measurements will be recorded using an industry accepted laser source and a power meter. Copies of all data sheets and tables and one set of diskettes with all traces will be available to Licensee. 7. Following emergency restoral, City personnel shall perform span test documenting end to end attenuation measurement of each fiber and will be completed in both directions at 1310 & 1550 nm wavelengths. Upon permanent repair, new splice loss readings should be approximately the original splice loss specifications. City Council Meeting of December 21, 2015 (Item No. 4c) Page 33 Title: Fiber Lease Agreements EXHIBIT C City Fiber Building and Location on the Fiber Equipment Rack (if applicable) City Council Meeting of December 21, 2015 (Item No. 4c) Page 34 Title: Fiber Lease Agreements EXHIBIT D Maintenance Specifications 1. Notice. City shall provide Licensee with telephone, facsimile, or written notice of all non-emergency planned network maintenance no later than seven (7) business days prior to performing maintenance that, in its reasonable opinion, has a substantial likelihood of affecting Licensee's traffic. If City's planned activity is canceled or delayed, City shall promptly notify Licensee and shall comply with the provisions of the previous sentence to reschedule any delayed activity. 2. Standard of Care; Cooperation. In performing its services hereunder, City shall take workmanlike care and make commercially reasonable efforts to prevent impairment to the signal continuity and performance of the Licensed Fibers. In addition, City shall reasonably cooperate with Licensee in sharing information and analyzing the disturbances regarding the cable and/or fiber facilities. 3. Licensee's Equipment. Nothing contained herein shall make City responsible for the Licensee's Equipment. 4. Escalation List. City shall, at Licensee's request, provide Licensee an operations escalation list for use in reporting and seeking redress of exceptions noted in City's performance of routine maintenance and non-routine maintenance. Meeting: City Council Meeting Date: December 21, 2015 Consent Agenda Item: 4d EXECUTIVE SUMMARY TITLE: Fund Equity and Operating Transfers RECOMMENDED ACTION: Motion to Adopt Resolution authorizing fund equity and operating transfers. POLICY CONSIDERATION:  Does the City Council concur with the staff recommendation regarding the level of fund balance in the General Fund and the proposed equity transfers to the Housing Rehabilitation Fund, Pavement Management Fund and Capital Replacement Fund?  Does the City Council concur with the proposed operating transfer from the Permanent Improvement Revolving Fund (PIR) to the Capital Replacement Fund? SUMMARY: This report includes information on the projected level of fund balance in the General Fund and proposed transfers between funds for the year ending December 31, 2015. The need for equity and operating transfers between funds is analyzed each year and information is forwarded to Council for approval. This process supports the continued work on the Long Range Financial Management Plan as discussed with Council. In addition, the recommended transfers help support priorities identified by the Council relating to housing, infrastructure and capital investments. FINANCIAL OR BUDGET CONSIDERATION: The proposed transfers will direct resources to funds that will help achieve City Council priorities and attain long-term financial sustainability. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Discussion Resolution Prepared by: Darla Monson, Senior Accountant Reviewed by: Brian A. Swanson, Controller Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City Council Meeting of December 21, 2015 (Item No. 4d) Page 2 Title: Fund Equity and Operating Transfers DISCUSSION BACKGROUND: At the end of each calendar year, all funds are analyzed to determine if transfers should be recommended to meet fund balance policy requirements or to assist with long-term sustainability. PRESENT CONSIDERATIONS: Equity Transfers As per the December 31, 2014 Comprehensive Annual Financial Report (CAFR), the unassigned fund balance in the General Fund was $14,576,348, which was equal to 44.7% of the 2015 budgeted expenditures. The City’s Fund Balance Policy states that the City will strive to maintain a fund balance in the General Fund that is within a range of 35% to 50% of the following year’s budgeted expenditures, and that any amount greater than 40% can be transferred to other funds. The City’s policy follows the Office of the State Auditor’s recommended fund balance guidelines. At the end of 2015, Staff anticipates that the unassigned fund balance in the General Fund will increase to approximately $17.4 million. This is based on projections that were prepared by Staff using actual year to date numbers through mid-November 2015 to project activity through the end of the fiscal year resulting in revenues over expenditures of approximately $2.8 million. Based on this, the projected end of year unassigned fund balance in the General Fund would grow to approximately 51% of the 2016 budgeted expenditures, which would exceed the range of 35% to 50% stated in the policy. Therefore, it is recommended that an equity transfer from the General Fund of $2,000,000 be made in 2015. Utilizing the most current Long Range Financial Management Plan, Staff is recommending a transfer of $1.0 million to the Housing Rehabilitation Fund, $750,000 to the Pavement Management Fund, and $250,000 to the Capital Replacement Fund. With the recommended transfers to these funds, the unassigned fund balance within the General Fund would be projected to be in a range of 43% - 47% of the 2016 budgeted expenditures, with the target goal being approximately 45%, or $15.4 million depending on 2015 final year end results. Housing Rehabilitation Fund – Transfer in of $1.0 Million: The Housing Rehabilitation Fund was established to provide funding for projects and programs that focus on providing well-maintained and diverse housing along with increasing affordable rental and ownership opportunities. The primary revenue source for this fund is the 1/8th of one percent fee received by the City on the outstanding balance of private activity revenue bonds, which has historically amounted to approximately $500,000 to $600,000 per year. The Housing Rehabilitation Fund also began receiving a property tax allocation of $100,000 in 2015. This fund continues to have long-term sustainability challenges. Private activity bond revenue, which accounts for the majority of the fund’s revenue, is projected to decline in future years due to a refunding this year and a more aggressive debt service payback schedule by Park Nicollet. Therefore, to help with long term sustainability a transfer of $1.0 million is recommended from the General Fund to the Housing Rehabilitation Fund in 2015. Pavement Management Fund – Transfer in of $750,000: The Pavement Management Fund provides funding for pavement rehabilitation projects within the City. The primary funding source for Pavement Management is gas and electric franchise City Council Meeting of December 21, 2015 (Item No. 4d) Page 3 Title: Fund Equity and Operating Transfers fees. With anticipated expansion of the Pavement Management program based on discussions with the City Council on the assessment policy, an equity transfer of $750,000 from the General Fund to the Pavement Management Fund is proposed in 2015. This transfer will help to fund some of the upfront City costs for the projects, as well as reduce future funding needed. Capital Replacement Fund – Transfer in of $250,000: The Capital Replacement Fund provides for all technology, vehicles, equipment, and municipal building improvement projects. This fund began receiving a property tax allocation in 2010 and Local Government Aid in 2014. Operating transfers from the Permanent Improvement Revolving Fund (PIR) have also occurred from 2012 to 2014, and an additional transfer is proposed in 2015. Due to capital planning revisions departments have made, anticipated Local Government Aid through 2017, and continued increased property tax allocations, the Capital Replacement Fund is expected to become sustainable in future years. An equity transfer in 2015 of $250,000 from the General Fund to the Capital Replacement Fund is recommended to help meet this goal. Operating Transfer Permanent Imp. Revolving Fund (PIR) to Capital Replacement Fund – Transfer of $400,000: Beginning in 2012, transfers have been recommended each year from the PIR Fund to the Capital Replacement Fund. In 2012, $300,000 was transferred and $450,000 was transferred in both 2013 and 2014. In 2015, a final transfer in the amount of $400,000 from the PIR Fund to the Capital Replacement Fund is recommended. No further transfers are planned from the PIR Fund in future years in order to maintain an appropriate fund balance for the fund’s intended purpose of providing cash flow for special assessments and Municipal State Aid (MSA) reimbursable construction projects. City Council Meeting of December 21, 2015 (Item No. 4d) Page 4 Title: Fund Equity and Operating Transfers RESOLUTION NO. 15-____ RESOLUTION AUTHORIZING FUND EQUITY TRANSFERS AND OPERATING TRANSFER WHEREAS, the City of St. Louis Park has created various special purpose funds; and WHEREAS, some of those funds rely on transfers from other funds for their continued operation; NOW, THEREFORE, BE IT RESOLVED, by the St. Louis Park City Council: 1. Approval is hereby given to the Controller to transfer the following sums of money from the General Fund to the Housing Rehabilitation Fund, Pavement Management Fund, and Capital Replacement Fund as shown. Transferring Fund Receiving Fund Amount General Fund Housing Rehabilitation Fund $ 1,000,000 General Fund Pavement Management Fund 750,000 General Fund Capital Replacement Fund 250,000 2. Approval is hereby given to the Controller to make an additional transfer between funds in the amount as shown. Transferring Fund Receiving Fund Amount Permanent Improvement Revolving Fund (PIR) Capital Replacement Fund $ 400,000 Reviewed for Administration: Adopted by the City Council December 21, 2015 City Manager Mayor Attest: City Clerk Meeting: City Council Meeting Date: December 21, 2015 Consent Agenda Item: 4e EXECUTIVE SUMMARY TITLE: Ordinance Amending St. Louis Park City Code Chapter 3, Section 57 to Provide for Microdistillery Licenses RECOMMENDED ACTION: Motion to approve the second reading and Adopt Ordinance amending St. Louis Park City Code Chapter 3, Section 57 to provide for microdistillery cocktail room licenses and microdistillery off-sale licenses and to approve the summary ordinance for publication. POLICY CONSIDERATION: Does the City Council support the proposed ordinance amendment related to microdistilleries? SUMMARY: On December 7, 2015 staff presented the Council with an ordinance amendment to update the liquor licensing provisions contained in St. Louis Park City Code Chapter 3, Section 57. The proposed ordinance amendment incorporated new license classifications related to microdistilleries. Following discussion by the Council, the first reading of the ordinance amendment was approved with the following provisions: - Add a license classification that would allow the City to issue a cocktail room license to the holder of a microdistillery license. The license would authorize the on-sale of distilled spirits produced by the distiller for consumption on the premises of or adjacent to one distillery location owned by the distiller. State laws that apply to a retail liquor license, including laws governing hours and days of sale, apply to microdistillery cocktail room licenses. - Add a license classification that would allow the City to issue a microdistillery off-sale license to the holder of a microdistillery license. Off-sale hours and days of sale must conform to the hours of sale for retail off-sale licensees in the licensing municipality. Microdistilleries are currently allowed in Industrial zoning districts, however cocktail rooms are not allowed under current zoning code regulations. It is anticipated that the required zoning code amendments will be sent to the Planning Commission for review in January, 2016. Following action by the Planning Commission, the proposed zoning code amendments will be placed on a Council agenda for consideration. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Ordinance Amendment Summary Ordinance for Publication Prepared by: Melissa Kennedy, City Clerk Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City Council Meeting of December 21, 2015 (Item No. 4e) Page 2 Title: Ordinance Amending St. Louis Park City Code Chapter 3, Section 57 to Provide for Microdistillery Licenses ORDINANCE NO.____-15 ORDINANCE AMENDING CHAPTER 3, SECTION 57 TO PROVIDE FOR MICRODISTILLERY COCKTAIL ROOM LICENSES AND MICRODISTILLERY OFF-SALE LICENSES THE CITY OF ST. LOUIS PARK DOES ORDAIN: SECTION 1. Chapter 3 is amended as follows: ARTICLE II. SALE, CONSUMPTION AND DISPLAY *** Sec. 3-57 Classifications *** (15) Microdistillery cocktail room license. A microdistillery cocktail room license may be issued to the holder of a microdistillery license issued under Minn. Stat. § 340A.22. A microdistillery cocktail room license authorizes the on-sale of distilled liquor produced by the distiller for consumption on the premises of or adjacent to one distillery location owned by the distiller. a. The city shall, within ten days of the issuance of a microdistillery cocktail room license inform the commissioner of public safety of the licensee’s name and address and trade name, and the effective date and expiration date of the license. The city shall also inform the commissioner of a license transfer, cancellation, suspension, or revocation during the license period. b. No single entity may hold both a microdistillery cocktail room and taproom license, and a cocktail room and taproom may not be co-located. c. A restaurant is not allowed at a microdistillery with a cocktail room license. *** (16) Microdistillery off-sale license. A microdistillery off-sale license may be issued to the holder of a microdistillery license issued under Minn. Stat. § 340A.22 subject to the following conditions: a. The license permits the sale of one 375 milliliter bottle per customer per day of product manufactured on site; b. Off-sale shall be limited to the legal hours for off-sale pursuant to section 3-105; and c. No brand may be sold at the microdistillery unless it is available for distribution to by wholesalers. City Council Meeting of December 21, 2015 (Item No. 4e) Page 3 Title: Ordinance Amending St. Louis Park City Code Chapter 3, Section 57 to Provide for Microdistillery Licenses SECTION 2. This Ordinance shall take effect fifteen days after its passage and publication. First Reading December 7, 2015 Second Reading December 21, 2015 Date of Publication December 31, 2015 Date Ordinance takes effect January 15, 2016 ADOPTED this 21st day of December, 2015 by the City Council of the City of St. Louis Park. Reviewed for Administration: ___________________________________ City Manager Adopted by the City Council _____________________________________ Mayor Attest: ___________________________________ City Clerk Approved as to form and execution: _____________________________________ City Attorney City Council Meeting of December 21, 2015 (Item No. 4e) Page 4 Title: Ordinance Amending St. Louis Park City Code Chapter 3, Section 57 to Provide for Microdistillery Licenses SUMMARY FOR PUBLICATION ORDINANCE NO. ____-15 ORDINANCE AMENDING CHAPTER 3, SECTION 57 TO PROVIDE FOR MICRODISTILLERY COCKTAIL ROOM LICENSES AND MICRODISTILLERY OFF-SALE LICENSES This ordinance amends Chapter 3, Section 57 of the City Code to allow licensed microdistillers to obtain a microdistillery cocktail room license or a microdistillery off-sale license subject to all local and state regulations. Adopted by the City Council December 21, 2015 Jeffrey W. Jacobs /s/ Mayor A copy of the full text of this ordinance is available for inspection with the City Clerk. Published in the St. Louis Park Sailor: December 31, 2015 Meeting: City Council Meeting Date: December 21, 2015 Consent Agenda Item: 4f EXECUTIVE SUMMARY TITLE: Agreement with Hennepin County Sentencing to Service (STS) Program RECOMMENDED ACTION: Motion to approve entering into a service agreement with the Hennepin County Department of Corrections for continuing to use their crews from the Sentencing to Service Program (STS Program). POLICY CONSIDERATION: Does the City Council wish to continue an agreement with the Hennepin County Department of Corrections to purchase services from the Sentencing to Service Program (STS Program)? SUMMARY: The Operations and Recreation Department and Facilities Maintenance division utilized the Hennepin County Corrections Department for services including janitorial services, litter pick-up, hand mowing, buckthorn removal and other lower level maintenance from the Sentencing to Service Program (STS Program). The City of St. Louis Park has had contracts with Hennepin County for the use of the STS crews for more than 15 years and the program has been quite successful for the City. The crews are able to assist our staff with many lower level maintenance items that we are unable to accomplish in a timely fashion. FINANCIAL OR BUDGET CONSIDERATION: This two year contract will be in effect January 1, 2016 through December 31, 2017 and shall not exceed $148,428.80. A payment of $74,214.40 will be submitted to the County in 2016 and $74,214.40 will be submitted in 2017. This is a budget item included in the Operations and Recreation Department budgets. Because combining the contracts into one contract for 2 years brings the dollar amount to a cost that is over $100,000, the City Attorney indicated that the City Council should approve this contract. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: None Prepared by: Stacy Voelker, Senior Office Assistant Rick Beane, Park Superintendent Reviewed by: Cindy Walsh, Director of Operations and Recreation Approved by: Tom Harmening, City Manager Meeting: City Council Meeting Date: December 21, 2015 Consent Agenda Item: 4g EXECUTIVE SUMMARY TITLE: Special Assessment – Sewer Service Line Repair at 4140 Utica Avenue South RECOMMENDED ACTION: Motion to Adopt Resolution authorizing the special assessment for the repair of the sewer service line at 4140 Utica Avenue South, St. Louis Park, MN. P.I.D. 07-028-24-32-0010. POLICY CONSIDERATION: The proposed action is consistent with policy previously established by the City Council. SUMMARY: Gary and Linda Schuette, owners of the single family residence at 4140 Utica Avenue South, have requested the City to authorize the repair of the sewer service line for their home and assess the cost against the property in accordance with the City’s special assessment policy. The City requires the repair of service lines to promote the general public health, safety and welfare within the community. The special assessment policy for the repair or replacement of water or sewer service lines for existing homes was adopted by the City Council in 1996. This program was put into place because sometimes property owners face financial hardships when emergency repairs like this are unexpectedly required. Plans and permits for this service line repair work were completed, submitted, and approved by City staff. The property owners hired a contractor and repaired the sewer service line in compliance with current codes and regulations. Based on the completed work, this repair qualifies for the City’s special assessment program. The property owners have petitioned the City to authorize the sewer service line repair and special assess the cost of the repair. The total eligible cost of the repair has been determined to be $2,300.00. FINANCIAL OR BUDGET CONSIDERATION: The City has funds in place to finance the cost of this special assessment. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Resolution Prepared by: Jay Hall, Utility Superintendent Reviewed by: Mark Hanson, Public Works Superintendent Brian Swanson, Controller Cindy Walsh, Director of Operations and Recreation Approved by: Tom Harmening, City Manager City Council Meeting of December 21, 2015 (Item No. 4g) Page 2 Title: Special Assessment – Sewer Service Line Repair at 4140 Utica Avenue South RESOLUTION NO. 15-____ RESOLUTION AUTHORIZING THE SPECIAL ASSESSMENT FOR THE REPAIR OF THE SEWER SERVICE LINE AT 4140 UTICA AVENUE SOUTH, ST. LOUIS PARK, MN P.I.D. 07-028-24-32-0010 WHEREAS, the Property Owners at 4140 Utica Avenue South, have petitioned the City of St. Louis Park to authorize a special assessment for the repair of the sewer service line for the single family residence located at 4140 Utica Avenue South; and WHEREAS, the Property Owners have agreed to waive the right to a public hearing, right of notice and right of appeal pursuant to Minnesota Statute, Chapter 429; and WHEREAS, the City Council of the City of St. Louis Park has received a report from the Utility Superintendent related to the repair of the sewer service line. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota, that: 1. The petition from the Property Owners requesting the approval and special assessment for the sewer service line repair is hereby accepted. 2. The sewer service line repair that was done in conformance with the plans and specifications approved by the Public Works and Inspections Departments is hereby accepted. 3. The total cost for the repair of the sewer service line is accepted at $2,300. 4. The Property Owners have agreed to waive the right to a public hearing, notice and appeal from the special assessment; whether provided by Minnesota Statutes, Chapter 429, or by other statutes, or by ordinance, City Charter, the constitution, or common law. 5. The Property Owners have agreed to pay the City for the total cost of the above improvements through a special assessment over a ten (10) year period at the interest rate of 4.00%. 6. The Property Owners have executed an agreement with the City and all other documents necessary to implement the repair of the sewer service line and the special assessment of all costs associated therewith. Reviewed for Administration: Adopted by the City Council December 21, 2015 City Manager Mayor Attest: City Clerk Meeting: City Council Meeting Date: December 21, 2015 Minutes: 4h OFFICIAL MINUTES ST. LOUIS PARK TELECOMMUNICATIONS COMMISSION MEETING OF August 12, 2015 ST. LOUIS PARK COUNCIL CHAMBERS MEMBERS PRESENT: Maren Anderson, Bruce Browning, Dale Hartman, Cindy Hoffman and Toby Keeler MEMBERS ABSENT: Rolf Peterson and Andrew Reinhardt STAFF PRESENT: Reg Dunlap, Civic TV Coordinator; John McHugh, Community TV Coordinator; Clint Pires, Chief Information Officer; and, Jacqueline Larson, Communications and Marketing Manager OTHERS PRESENT: Karly Werner, Comcast Cable 1. Call to Order Chair Browning called the meeting to order at 7:00 PM. 2. Roll Call Present at roll call were Commissioners Anderson, Browning, Hartman, Hoffman and Keeler. 3. Approval of Minutes for May 13, 2015 It was moved by Commissioner Keeler, seconded by Commissioner Anderson, to approve the minutes of May 13, 2015, without changes. The motion passed 5-0. 4. Adoption of Agenda It was moved by Commissioner Keeler, seconded by Commissioner Hoffman, to approve the agenda as presented. The motion passed 5-0. 5. Public Comment - None 6. Reports and Discussion A. CenturyLink Franchise Process Commissioner Anderson reported they had received a marked up copy of the Century Link franchise agreement. The City’s negotiating team includes: Moss & Barnett Attorney Brian Grogan, Commissioners Keeler, Browning and Anderson, and staff John McHugh, Reg Dunlap and Jacque Larson. The City Attorney will be copied on all information about legal questions or strategy. They had a full negotiating team meeting to discuss strategy. There was a meeting with CenturyLink on August 17th and they plan to meet every two weeks. The next meeting is October 14th. City Council Meeting of December 21, 2015 (Item No. 4h) Page 2 Title: Telecommunications Commission Meeting Minutes of August 12, 2015 B. Fiber Optic Study Update, i.e., fiber network linkage progress, etc. Clint Pires reported in 2012 the City Council identified specific goals and priorities for St. Louis Park to become an increasingly technologically connected community. In 2012 a fiber policy study lead to two policy questions: 1) What else might be done with existing City-school owned fiber optic network beyond existing institutional uses, 2) Should the City provide requirements or incentives to include fiber optic facilities in new construction or significant remodels? The project goals that came out of those questions were: 1) Options for maximizing the benefits of existing infrastructure; 2) Options for expanding existing City infrastructure, and 3) Options for City actions that could facilitate private construction of infrastructure. Summary and major findings:  City has successfully met most internal communications needs  Fiber represents the emerging standard for broadband and most scalable and capable of broadband technologies  Availability of consumer broadband products has increased since St. Louis Park last evaluated broadband access in 2006  St. Louis Park consumers do not have access to state of the art fiber networks Summary and update of 2012 recommended strategies:  Lease access to existing fiber and conduit to enable private investment  Incrementally expand City fiber  Build fiber between Park Nicollet facilities (hospital/clinic and Melrose Institute). The city is partnering with Hennepin County and able to access conduit in that area and then explore partnership with Park Nicollet.  Build to Park and Rec and Public Works facilities (park structures, automated security systems)  Build to City’s third water tower – Purchase fiber and have access to all water towers. The water meter replacement program is underway, and the new meters will have antennae’s to transmit readings wirelessly and can also do leak detection.  Build to St. Louis Park library - collaboration with Hennepin County to make use of excess capacity in our system in exchange for building out added fiber.  Build over time to key economic development targets (i.e. West End)  Continue installing conduit during capital improvement projects  Complete fiber rings where possible during the course of routine fiber and conduit installations (create redundancy) Summary and update of 2012 study recommended strategies:  Proceed with caution regarding expansive strategies to enable broadband in St. Louis Park  Evaluate a fiber model similar to the alley assessment model  Require conduit and fiber installation for new construction  Expediting local processes and waive fees to facilitate private sector infrastructure. He displayed a list of some of the projects going on from 2014 and 2015, including Highway Louisiana, along Highway 7 and 100, Parkland water tower (connecting City Council Meeting of December 21, 2015 (Item No. 4h) Page 3 Title: Telecommunications Commission Meeting Minutes of August 12, 2015 dispatch to the 800 MHz system), investment in disaster recovery, working with Hennepin County projects (including SW LRT), park projects, etc. Chair Browning asked if somebody cuts a fiber, who pays for the repair? Mr. Pires replied the contractor is generally responsible and there is protocol for locating utilities and if it is properly located, they are responsible. They are also responsible if it is not property located. The City has a company on-call that can respond quickly. Chair Browning how can they disrupt fiber when it is all marked, are they not paying attention? Mr. Pires locates are standard and easy to do. It depends how cautious the contractor is. Most right of way work goes on without problems. Chair Browning asked if there was any fiber being moved or added when they were doing construction on the Minnetonka Bridge? Mr. Pires responded yes, they found out when the bridge was being constructed that a private company would be moving their fiber and they asked to collaborate with them and got a good price on getting a crossing and added extra conduits alongside theirs. Commissioner Keeler stated that the City had done a good job. C. City Council goals including St. Louis Park as a Technology Connected Community, a role for the TAC and a possible technology survey Mr. Pires stated each year the City Council has an annual workshop in January. The primary intent was to reach consensus on the goals and priorities for the next ten years. City Council came to goal agreement on five goals/priorities. On February 9th staff reviewed with and the City Council confirmed five goals/priorities were in keeping with City Council initial intent from the workshop. Staff indicated it would take about 90 days to develop specific strategies and two-year action plan to begin to address the Council’s goals/priorities. The five priorities and goals are intended to articulate and provide direction to staff on those things the Council feels will have the most powerful/positive impact on the St. Louis Park community by 2024. It allows staff to orient work plans and resources accordingly. These five priorities/goals will be reviewed annually to make sure they are still relevant, and course corrections would be made by the Council as necessary. Staff must continue to provide collaborative, high quality and responsive services to ensure that St. Louis Park is the most desirable place to live, work and do business. In 2015-2016: Redevelopment around the three SWLRT stations is maximized to the fullest extent possible; 2) St. Louis Park is a leader in environmental stewardship, sustainability and resiliency; 3) St. Louis Park has top ranked schools, a well maintained and diverse housing stock, and strong, vibrant neighborhood; 4) St. Louis Park has high quality community amenities and facilities; and, 5) St. Louis Park is a technology connected community. This is important to set them apart and better promote economic group and community development and improve overall quality of life. City Council Meeting of December 21, 2015 (Item No. 4h) Page 4 Title: Telecommunications Commission Meeting Minutes of August 12, 2015 Some of the strategies include: researching strategic options; supporting school/community education initiatives; encouraging more private market consumer choices; integrating new private carrier technology infrastructure (e.g. mini cell towers) into community; support or build broadband public related infrastructure/target private development opportunities and support community technology applications for enhanced livability of all age groups from youth to seniors; maximize speed of broadband deployment; enhance private development broadband readiness (possible ordinance some day) There will be challenges such as resources, process, imagination and what are the possibilities. The next step will be the City Council adopting the priorities and then a roll out will take place. They are looking for participation and to develop specific plans to put in place. He suggested participants in Phase 1 include: TAC, the school district, and the chamber of commerce. Once they get some refinement and make it strategy-specific, then they can find the people who can build these things. It will be a ten-year plan. This reinforces what the commission has done with the fiber study. The City Council is putting a priority on technology. Chair Browning liked the city’s overview and how they fit together. Defining technology is a moving target and they are behind compared to Japan and some places in Europe. The standards are moving quickly. Fiber is large part of this, and they need to roll it out and make it affordable and they need to do this as a community. Mr. Pires replied it took a combination of players, both public and private. Ultimately everyone will deliver services over fiber and it’s not free. D. Franchise described “State of the Art” review due on the 10 th anniversary of granting franchise January, 2016 Chair Browning indicated State of the Art (SOA) was hard to define. It is fiber and they weren’t there yet, but were getting there. An all-fiber network would be ideal. Mr. Dunlap stated this was a discussion item and advance notice on this topic. It wasn’t due until next year. Commissioner Keeler asked if the franchise called out specifically how this should be done? Mr. Dunlap replied the City would hold a public hearing for public comment and presenting evidence. As a result, the City and company may enter into good faith negotiations to amend the franchise as necessary to provide system improvements. This was to make sure St. Louis Park system didn’t fall behind other communities. This isn’t as much of an issue as it had been in the past year’s with small cable companies. Commissioner Keeler asked if this was an option or requirement? Mr. Dunlap replied it was an option. In 2011 the commission opted not to review it at that time. City Council Meeting of December 21, 2015 (Item No. 4h) Page 5 Title: Telecommunications Commission Meeting Minutes of August 12, 2015 Chair Browning said it would be good to discuss because technology is moving quickly. Comcast, CenturyLink and the providers have a good idea of what state of the art is. The closest thing to state of the art is fiber to home. Commissioner Keeler said he wasn’t sure they would get a lot of input from the public. He thought they would get a lot of complaints regarding customer service, etc., and that wasn’t the intent of the SOA hearing. Chair Browning thought it might be worthwhile to invite technology leaders, such as fiber manufacturers, to explain where they think its going and what their plans were. Mr. McHugh noted Comcast mentioned they were adding thousands of customer service agents in the future and he thought that might be area to examine, as in state of the art customer service. Commissioner Hoffman asked about voice recognition software used for customer service? Mr. McHugh replied when you call and speak to an automated system. Commissioner Hoffman referred to a colleagues experience with the customer service and reaching someone who didn’t speak English and using a system to translate. Chair Browning stated that other companies had the same problems and it was something to revisit. E. Complaints Chair Browning expressed concern about the word ingress because there were a number of outages with the cable system in the city and what fixed the problem was ingress. It meant there was a break in the cable system that allowed outside information to leak into the system and caused trouble. Once discovered, it was repaired. A lot of the complaints wind up being escalated and the escalation team does great job. It would be ideal to solve before that point. Commissioner Hoffman referred to the complaint where an individual tried to return a box after their brother had died in another state. They wouldn’t accept it in the other state and it should be linked by the bar code and there should be better connection. Ms. Werner didn’t know the specifics of the complaint, but would look into it. Mr. McHugh stated Comcast has UPS delivery and they should have told them where to ship it. Commissioner Hoffman noted the brother’s name was on the account and they said he could go to any office, but the local office said they couldn’t help. Does every state run differently? Ms. Werner would look into it. They don’t run differently, but are broken into divisions. 7. Communication from the Chair, Commissioners and City Staff Ms. Larson updated the commission on the web site redesign. A team in communications was working to roll out the new design by March 2016. They are looking at other web City Council Meeting of December 21, 2015 (Item No. 4h) Page 6 Title: Telecommunications Commission Meeting Minutes of August 12, 2015 sites that they like and categories for the navigation. They used Survey Monkey to gather approximately 20 responses and were getting results at the end of August. Mr. Dunlap said he is preparing a City Council report for their August 24th Study Session regarding franchise fees and will send it to TAC members. Ms. Werner updated the commission on the Internet Essentials Program that was evolving and staying relevant. The program provides free Wi-Fi routers to subscribers so kids and parents could use the internet at the same time. They are doubling speeds without increasing the price and expanding auto enrollment. If a child is in a school that 50% get free/reduced lunch they are all eligible for the program. Comcast has connected 500,000 families nationwide. They are starting a senior citizen pilot program for Internet Essentials and will have digital literacy training courses. Cost is a huge barrier, but also relevancy because some people don’t know why the internet is relevant to their lives. In a customer survey, about Internet Essentials, 98% of families use the service for school and felt it had a positive impact on grades. They also felt it had impacts on finding a job. Comcast will be doing another speed increase at end of the month without an increased cost. Speeds will go from 25 to 50 megabits per second (MBS), 50 to 105 MBS and 105 to 150 MBS. They plan to have a 1 gig speed Internet available to every subscriber that can get service from Comcast, and will also be rolling out a 2 gig service by the end of next year. Chair Browning asked if they would need to reboot the cable modem to get the faster speeds? Ms. Werner said they will send a notice to customers that there would be an immediate increase in speeds, that a newer modem won’t need to be rebooted. However the 1 gig service will require new modems because it is an upgraded system. Commissioner Keeler asked for details about the senior program. Ms. Werner replied it would be starting in Palm Beach County, but hadn’t rolled out here yet. She would get back to the commission with the criteria. 8. Adjournment Commissioner Keeler made a motion, Commission Anderson seconded to adjourn at 8:08. The motion passed. Respectfully submitted by: Amy L. Stegora-Peterson Recording Secretary Meeting: City Council Meeting Date: December 21, 2015 Minutes: 4i OFFICIAL MINUTES ST. LOUIS PARK TELECOMMUNICATIONS COMMISSION MEETING OF SEPTEMBER 23, 2015 ST. LOUIS PARK COUNCIL CHAMBERS MEMBERS PRESENT: Maren Anderson, Bruce Browning, Dale Hartman, Cindy Hoffman, Toby Keeler and Rolf Peterson MEMBERS ABSENT: Andrew Reinhardt STAFF PRESENT: Reg Dunlap, Civic TV Coordinator; Jacque Larson, Communications and Marketing Manager; John McHugh, Community TV Coordinator OTHERS PRESENT: Brian Grogan, Attorney for Moss & Barnett, Patrick Haggerty, CenturyLink Director of Regulatory and Legislative Affairs, and Kirstin Sersland, CenturyLink Director of Local Government Affairs. 1. Call to Order Chair Browning called the meeting to order at 6:10 PM. 2. Roll Call Present at roll call were Commissioners Anderson, Browning, Hartman, Hoffman, Keeler and Peterson. 3. CenturyLink application for a Cable TV franchise Mr. Dunlap thanked the Commissioners for attending the special meeting. He said the City franchise negotiation team has met with CenturyLink five times since the last Commission meeting August 12, and has made great progress. He thanked Commissioners Keeler and Browning for their assistance. He said that the draft franchise is not available tonight, and that he was asking the Commission to make a recommendation to the City Council based on the staff report and the testimony of Commissioners Browning and Keeler. Mr. Dunlap introduced Brian Grogan of Moss & Barnett, the City’s attorney, to provide background on the draft franchise. Mr. Grogan gave a PowerPoint presentation. He said the franchise is substantially complete with a few details left which do not raise to the level of deal-breakers. He said the Federal Cable Act specifically allows a franchising authority to grant one or more franchises, and “may not unreasonably refuse to award an additional competitive franchise.” He said the goal for franchise negotiations with CenturyLink was to offer a level playing field with the franchise currently in place with Comcast, not giving either company a competitive advantage. The starting point was the Comcast franchise, which CenturyLink marked up with changes and provided to the City in July, 2015. Mr. Grogan said the goal was nearly identical franchises, and that we’ve come reasonably close to that. City Council Meeting of December 21, 2015 (Item No. 4i) Page 2 Title: Telecommunications Commission Meeting Minutes of September 23, 2015 A lot of issues relate to the difference in systems. Comcast is a hybrid fiber coax system, and CenturyLink is an IP delivery system, which means only one channel is provided to the customer’s home at a time. One distinction is that Comcast runs the cable system and owns the facilities in the right of way. Qwest Broadband Services, Inc. (QBSI), doing business as CenturyLink, will run the cable system, but Qwest Corporation owns the facilities in the right of way. QBSI will be the content provider who contracts with HBO, for example. Because we have sister companies involved, one section in the franchise clarifies the relationship between the companies. Mr. Grogan said that there are several reasons that the CenturyLink franchise is for a five year term. One is that the Comcast franchise ends in about five years, so that when it’s time to talk about franchise renewal, the talks can be synched up. The second reason is state law’s build out requirement in five years. There’s some dispute about whether this applies to CenturyLink, but with the five year franchise term, the City can look at the build out progress CenturyLink makes in that term, and has the unilateral right to renew the franchise for between five and ten years, if they’re happy with the progress made. Mr. Grogan said that CenturyLink franchise defines households as “living units,” which includes single family homes, multi-dwelling units and business locations. Any living unit that meets minimum technical qualifications, at least 25 megabits per second internet speeds, are called “qualified living units” to receive the CenturyLink Prism TV service. Mr. Grogan said he’s seen the maps of qualified living units for the vast portion of the southern metro area, and St. Louis Park has one of the best maps for the service that CenturyLink can make available. The City’s franchise negotiating team was quite pleased with that. Mr. Grogan said that system build out was the most controversial area of the franchise and one that we struggled with. The franchise requires that CenturyLink will serve a minimum of 15% of the living units in the city within two years, and quarterly meetings to verify compliance with build obligations. That number is a low threshold, but based on the confidential and proprietary maps provided by CenturyLink, staff is confident that number is low compared with what CenturyLink is going to be able to initially provide. Once CenturyLink reaches 27 ½ % of the households capable of receiving cable service, they are required to build an additional 15% of the City. At the first quarterly compliance meeting, the City will be able to review what CenturyLink’s effective footprint is. So within three months of the effective date of the franchise, that 15% number will change to reflect the real world footprint, which is substantially higher. Once that number is set, CenturyLink will be required to build an extra 15% above that number. It’s a complicated procedure but is consistent with CenturyLink’s approach in other markets like Seattle, Omaha and Minneapolis. Chair Browning asked if Mr. Grogan could give an example to clarify how it would work. Mr. Grogan used the example of a city with 100,000 households, or living units. City Council Meeting of December 21, 2015 (Item No. 4i) Page 3 Title: Telecommunications Commission Meeting Minutes of September 23, 2015 The franchise says that within two years, CenturyLink must build to 15,000 living units. But if CenturyLink comes in with a map that shows that they can serve 50,000 living units immediately, that number becomes the new baseline. Then if they serve 27 ½ % of those households, they would have to add 15% living units on top of the 50,000 living units. Mr. Grogan said the city is in elite company in terms of the favorable nature of the map, and after the first quarter meeting where that number can be made public, citizens and commissioners will be pleased. He said that now that we’ll have two competitors, we can expect that Comcast will also treat some of their information as confidential and we’ll have to have some procedures to address that. The companies will both be careful about what they release publicly since they’ll be fighting for market share. Mr. Grogan then addressed the carriage of public, educational and government (PEG) channels. The systems are different; Comcast customers can only watch the St. Louis Park PEG channels, but CenturyLink customers will be able to watch the PEG channels for the entire metro area, about 200 channels in total. As a result of so many PEG channels, CenturyLink uses a mosaic channel, a single channel that shows the government channel, and in a smaller window, all the other PEG channels for the City. This is the same arrangement as with other cities. Somewhere between channels 14 and 50 will be the mosaic channel for St. Louis Park, and when a viewer picks the “P” or “E” channel with their remote control, they’ll go straight to that channel which will actually be on a channel assignment in the 8000’s. Another feature is that the PEG channels will be available in both standard definition (SD) and high definition (HD), a different scenario than Comcast. He said St. Louis Park and Fridley are unique in having a robust video on demand allocation with Comcast. That’s a precious commodity on the Comcast system, so they offer up to twenty hours of SD programs or five hours of HD. CenturyLink will offer all twenty hours in either HD or SD. Mr. Grogan said that CenturyLink will provide the exact same amount for PEG equipment capital, $1.12 per customer. He said free service to public buildings is another key area in the franchise, and more than half of the public buildings will qualify as living units, served by CenturyLink. The only qualification is that CenturyLink doesn’t want to go where Comcast is already offering free service. There’s a provision in the franchise where the City can take a building off the Comcast list so that CenturyLink will have to serve it, to create parity in the burdens to each company. Mr. Grogan said if the City awards a franchise to CenturyLink, we’ve asked that CenturyLink step in to indemnify the City if that franchise is challenged by Comcast or another provider, which is an obligation Comcast doesn’t have. Mr. Grogan said, in conclusion, my recommendation is to recommend to the City Council to award this franchise to CenturyLink. Commissioner Peterson asked if in the example, the 50,000 represented living units? Mr. Grogan replied that those were the qualified living units, in the example. Commission er City Council Meeting of December 21, 2015 (Item No. 4i) Page 4 Title: Telecommunications Commission Meeting Minutes of September 23, 2015 Peterson said that at the quarterly meeting then, we’ll find out that number and the 15% goes on top of that number. Commissioner Peterson asked about the 27 ½ % take rate, to require additional 15% build out. Mr. Grogan said that’s an aggressive number, and would show market success. Commissioner Keeler said the negotiations went well, and the City was well represented. The issues that came up were related to equity between Comcast and CenturyLink, and all parties worked diligently to resolve them. He said it has been a very good process and the City is well protected as we go forward, and that residents would have another option to Comcast. Chair Browning said he agreed with Commissioner Keeler, that the process protected both sides and that having a competitor is a plus. He said that Comcast has had real issues with customer service, and asked what CenturyLink’s would be like? Mr. Haggerty said that the two companies were fundamentally different. He said customer service will be the differentiator in this market, that whether a customer chooses us or them, it will be based on the service they receive. Chair Browning asked where the CenturyLink call centers are located, and if any of them are overseas? Mr. Haggerty said that all of their call centers are in the U.S. and several of their operations are in Minnesota, with 3,000 employees in the state including call centers. He said there’s a likelihood that someone calling customer service would get someone from the Twin City area. Mr. Haggerty said he appreciated the speed of the process in St. Louis Park. Commissioner Peterson asked if the existing copper infrastructure would be used to deliver the service to the first 50,000 households? He said that in the example of 50,000 living units, those have already been brought up to 25 megabits per second using existing infrastructure. This is a very capital intensive business. He said CenturyLink is putting together a business case around the country for what networks will look like in the future, and that will be fiber all the way to the home. He said they have to find a way to incrementally build that system, and offering Prism is one of the ways to do that. Commissioner Peterson said he was looking forward to that future, and that he felt better about the process because Commissioners Browning and Keeler were involved, rather than just having staff there. Commissioner Keeler said it’s a good contract and that he recommends that the Commission approve the contract. Commissioner Peterson made the motion to direct staff to complete franchise negotiations with CenturyLink and to recommend that the City Council adopt the proposed franchise ordinance to allow CenturyLink to offer cable TV services in St. Louis Park. Commissioner Anderson seconded the motion, which passed 6-0. The meeting adjourned at 6:55 p.m. Respectfully submitted by: Reg Dunlap Meeting: City Council Meeting Date: December 21, 2015 Minutes: 4j MINUTES ENVIRONMENT AND SUSTAINABILITY COMMISSION: SUSTAINABLE SLP ST. LOUIS PARK, MINNESOTA November 4, 2015 Community Room, City Hall MEMBERS PRESENT: Chris Anderson, Mark Eilers, Terry Gips, Ryan Griffin; Rachel Harris, Karen Laumb, Renee McGarvey, Cindy Larson-O’Neil, Nancy Rose, Jayne Stevenson, Judy Voigt, Paul Zeigle. EXCUSED ABSENCE: None STAFF PRESENT: Shannon Pinc and Recording Secretary (Mary Pappas) GUESTS: Elliot Richert, student (education and action work group); Julie Rappaport, work group member. 1. The meeting was called to order at 6:30 p.m. Introductions were made. It was noted that the Roots and Shoots fundraiser was a great success. A photo from the event will be added to the Commission’s Facebook page. 2. The minutes of the October 7, 2015 meeting were approved unanimously. 3. Business/Work Groups a. Proposed City Council Commission Annual Meeting input & report – The Commission reviewed comments from each commissioner related to the ESC on the Annual Meeting with the City Council Program. Shannon will follow up with Rachel and include her comments also. Chair Gips recommended all comments be submitted to the Council by Friday, November 7. Chair Gips made a motion to assemble the above comments into specific bullet points within the document and also that Chair Gips and Rachel will review and then submit the comments to the City Council. Commissioner Rose seconded the motion, which passed unanimously. b. Visioning meetings with City Manager - Chair Gips reported on the meeting with City Manager Harmening, and explained the main focus was completing the second half of the workshop on Sustainability and the Natural Step Framework to assess the possibility of it being used as a city- wide education tool as well as part of a possible visioning process. There was a lengthy, productive discussion about how it can be used for vision and process. Terry and Shannon will develop a proposal to be shared with the City Manager and get his feedback before bringing it back to the Commission. This remains in the works at present and the City Manager is positive about the work being conducted presently by the Commission’s work groups. The City Manager feels that the City City Council Meeting of December 21, 2015 (Item No. 4j) Page 2 Title: Environment and Sustainability Commission: Sustainable SLP Meeting Minutes of November 4, 2015 Council should participate in the process and will discuss this further with the new St. Louis Park mayor and new City Council members. Chair Gips also noted all work plans will need to be submitted to the City Council for approval. Once approved, they can be implemented. c. Plastics & Polystyrene meetings Chair Gips explained that City Staff presented two proposed ordinances on plastics and polystyrene, which were discussed at both the Staff and City Council meetings this week. It was noted that staff were not allowed to share their opinions related to the proposed ordinances, so no additional input was collected. He added that ultimately the city is going ahead with the polystyrene policy and a “bring your own bag” policy has been tabled pending further discussions about a fee. The Commission will need to weigh in on this policy and also the idea of a fee for bags, along with the impact it will have on businesses. The Commission also discussed fees, incentives, and biodegradable packaging, and the effects of imposing and using these measures related to polystyrene. They also discussed the possibility of working with other cities on this policy and also with Hennepin County, in order to attempt a coordinated, regional effort. Shannon noted the business responses have been weak and disappointing, stating the businesses want to work on this; however, no plans were brought forward. Chair Gips asked the Zero Waste Work Group to take this project on and give guidance, as the City Council will want guidance from the Commission. Shannon added that she can be a resource, and if others are interested in working on the polystyrene position statement, they were asked to let Shannon know. d. Evening or half day planning retreat; holiday potluck – The Commission discussed extending the December Commission meeting to two hours and also the idea of a 2-3 hour retreat session to be held in January 2016. The Commissioners liked the idea of visioning session and setting priorities. Chair Gips also noted it will be helpful to talk about strategy and Shannon stated bylaws can also be updated at the extended meeting, or at the January retreat. Cindy expressed concern that a retreat would not be an effective use of time, since work groups had already been focused on priorities in their written plans. She questioned the goal of a retreat meeting. City Council Meeting of December 21, 2015 (Item No. 4j) Page 3 Title: Environment and Sustainability Commission: Sustainable SLP Meeting Minutes of November 4, 2015 Chair Gips stated a retreat will help the Commission focus on strategy and priorities, and leave behind regular meeting items. Cindy added more support from City staff would also be helpful for the Commission. Ryan noted a solid agenda and input on the agenda, for the retreat, would be helpful. Renee agreed and added help from an outside facilitator would also be beneficial. A January retreat date will be explored and brought back to the December meeting for finalization. Cindy reiterated she would like to know the goals and proposed outcomes of this retreat session. Additionally, the Commission agreed to do a holiday potluck on Dec 2nd, at 6 p.m., prior to the start of the next monthly meeting. Commissioners will be asked to bring potluck items to the meeting. e. Term limits; Elections, new member orientation – Shannon presented the term limits that are up at the end of 2015. They include: Mark, Rachel, Ryan, Terry and Karen. She explained the process if Commissioners would like another term, is to fill out a form and include a statement of intention also. Those who want to return are: Rachel and Ryan. Those who do not want to return are: Mark, Karen and possibly Chair Gips. Paul Zeigle also chose to step down from the commission. Additionally, elections for Chair and Vice Chair will need to be conducted. Shannon can preside over this with ballots, if needed. She asked anyone interested in these positions to email her and voting will take place at the first or second meeting of 2016. New commissioners are to begin their terms in January. She also noted that new member orientation will be would be beneficial. Plans for this can be discussed further at the January retreat. Chair Gips also noted he would like to challenge the policy that middle school students cannot be on the commission. Shannon will assist Chair Gips in making this known to City Staff. f. Water, Land, Wildlife- final plan approval- The Commissioners discussed several changes to the final plan. Commissioner Anderson made a motion to approve the plan with the noted changes. Commissioner Griffin seconded the motion, which passed unanimously. g. Education and Action – Chair Gips noted this topic will be tabled until the next meeting due to shortage of time to discuss. Julie did note that Seeds is applying for a grant for education and organics recycling from Hennepin County Green Partners in amount of $8000. City Council Meeting of December 21, 2015 (Item No. 4j) Page 4 Title: Environment and Sustainability Commission: Sustainable SLP Meeting Minutes of November 4, 2015 Seeds is now a non-profit and has filed with state of MN. This grant will help support the group and also events related to Earth Day. A letter of support and commitment of time from the Commission was needed. Commissioner Griffin made a motion that the commission writes and sends a letter to Green Partners in support of the grant application for Seeds in the amount of $8000, for a Green Partners roots grant. Chair Gips seconded the motion, which passed unanimously. h. Energy – The next Partners In Energy meeting is Thursday and the focus areas are youth, renewable energy, and business. The group will be strategizing on these items. The PACE financing group is helping establish at business liaison, and is also working on reducing energy usage, while moving forward on solar ideas also. The will be considering an energy assessment on the St. Louis Park police station, and exploring tools and options for a package. i. Zero Waste – a fundraiser was held, which generated $1217 net, and 325 bags of compost were sold. The fundraiser was publicized well and was very successful. Thanks to all who worked on it. SEEDS students benefitted from the fundraiser. j. Transportation – A meeting was held related to the idea of protected bike lanes on Dakota Avenue in St. Louis Park. The discussion centered on using the whole length of Dakota Ave and road treatment. Public interest and momentum is growing, as well as support from citizens, and how to add protected bike lanes to Dakota Ave. Another meeting will be held next Tuesday at Park Yogurt. k. Communications – A subset of the group met about how to launch and sustain the Commission’s FB and Twitter accounts. One volunteer from the Commission, and a volunteer citizen, will be need to assist with this process. Shannon can receive, edit, help write and sustain posts about the Commission’s work and work group information. Each Commission will also need to be trained to send information to the designated person and/or Shannon. More information will be presented at the December meeting by the work group. l. GreenStepCities – a conference call with PCA GreenStep Advisor Anne Gelbmann is scheduled for November 16 to learn about reporting procedures and rating evaluations. m. Other business i. Two-year City Council goals – Chair Gips thanked and acknowledged Nancy for reading the City Council agenda and minutes on a regular basis so that she could alert the Commission that this was being approved. Chair Gips submitted comments to the City Manager expressing concerns that the Commission wasn’t engaged in the process, that many key aspects of the Commission’s work were left out and that the goals should be open to revision. The City Manager responded favorably to each of the concerns and said the process in the future will include the Commission and that the City Council Meeting of December 21, 2015 (Item No. 4j) Page 5 Title: Environment and Sustainability Commission: Sustainable SLP Meeting Minutes of November 4, 2015 goals can be amended. Chair Gips explained that the goals had to be put together quickly and that there will be a better process going forward. ii. Westwood Hills Nature Center – The will be getting a new building, and the Commission will be notified during this process. Additionally, currently there is no policy on land use or vegetation, and there is concern because the Center is planting non-native vegetation. There will be several upcoming public meetings regarding the plans and commissioners are encouraged to attend. iii. Upcoming events –  Nov 12 – EPA meeting and Partners in Energy meeting, west metro meeting on Climate, notify Shannon if a table and representation is needed.  Dec 1st – 2015 Metro Summit for Lake and River Groups.  Jan 28 - Climate Adaptation Conference. The meeting was adjourned at 8:40 p.m. Meeting: City Council Meeting Date: December 21, 2015 Action Agenda Item: 8a EXECUTIVE SUMMARY TITLE: 2016 Budget, Final City and HRA Property Tax Levies, and 2016 – 2025 Capital Improvement Plan (CIP) RECOMMENDED ACTION:  Motion to Adopt Resolution approving the 2016 Budgets and 2016 Final Property Tax Levy.  Motion to Adopt Resolution authorizing the 2016 Final HRA Levy.  Motion to Adopt Resolution approving the 2016 - 2025 Capital Improvement Program. POLICY CONSIDERATION:  Does the City Council desire to approve the 2016 Budgets for General, Enterprise, Internal Service, Special Revenue, and select Capital Projects Funds?  Does the City Council desire to set the 2016 Final Property Tax Levy at $28,604,474 which is an increase of $1,619,097 or approximately 6.00% over the 2015 Final Tax Levy?  Does the City Council desire to levy the maximum 2016 HRA Levy allowed of $1,011,208 which is an increase of $57,970 or approximately 6.08% over the 2015 Final HRA Levy?  Does the City Council desire to approve the 2016 – 2025 Capital Improvement Plan (CIP)? SUMMARY: Information pertaining to the adoption of the 2016 Budgets, 2016 General Property Tax Levy, 2016 HRA Levy, and 2016 – 2025 CIP is attached. Also provided is the City tax impact to a residential property for Council to consider. In addition, there is a brief discussion on 2016 utility rates that were approved on October 19, 2015, and the overall impact to property owners when considering the City share of property taxes and fee adjustments. FINANCIAL OR BUDGET CONSIDERATION: The proposed tax levies and approved utility rates will help support necessary City services, capital improvements, and debt service obligations for Fiscal Year 2016. VISION CONSIDERATION: All Vision areas are taken into consideration and are an important part of the City’s budgeting process. SUPPORTING DOCUMENTS: Discussion Resolution - 2016 Budgets and 2016 Final Property Tax Levy Resolution - Authorizing the 2016 Final HRA Levy Resolution – Adopting the 2016 – 2025 CIP 2016 – 2025 CIP Projects by Funding Source Summary 2016 – 2025 CIP Projects and Funding Sources by Dept. Prepared by: Brian A. Swanson, Controller Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City Council Meeting of December 21, 2015 (Item No. 8a) Page 2 Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIP DISCUSSION BACKGROUND: On June 22, 2015, staff met with the City Council to discuss the 2016 Budget Process. Council agreed that staff should follow recommendations from the “2016 Budget Production Guidelines” when preparing the 2016 Budget. Assumptions for the 2016 Budget included a pattern similar to past years; 1) a levy increase, 2) modest increase in other fees and charges where appropriate to fit with business costs, 3) maintain high quality and responsive service delivery, 4) hold expenditures flat where possible with adjustments for some modest growth based on essential business needs, 5) funding for a wage and benefit contribution increase, 6) utility rate increases, and 7) continued long range financial planning. At the August 24th and September 8th, 2015 City Council Study Sessions, the City Council reviewed information from the staff report and subsequently directed staff to prepare a 2016 Preliminary Property Tax Levy increase of 6.50% when compared to the 2015 Final Property Tax Levy. In addition, the City Council directed staff to proceed with preparing the 2016 Preliminary HRA Levy at the maximum allowed by state statute, due to the significant infrastructure projects currently in progress and scheduled per the 2016 – 2025 Capital Improvement Plan. Council also directed staff to proceed with utility rate adjustments, which will both be brought back on October 19th for approval, in order to take effect in 2016. On September 8th, the EDA and City Council adopted and 2016 Preliminary HRA Levy $1,011,208, which is approximately 6.08% or $57,970 over the 2015 Final HRA Levy. On September 21st, the City Council adopted the 2016 Preliminary Property Tax Levy of $28,738,974, which is approximately 6.50% or $1,753,597 over the 2015 Final Property Tax Levy. On October 12th, based on direction from the City Council, staff looked at both revenue enhancements and expenditure reductions, and as such brought back a levy increase of 5.50% instead of the 6.50% increase, which is a $269,000 reduction from the 2016 Preliminary Property Tax Levy that was adopted on September 21st. Upon further discussion that evening, Council asked staff to prepare tax impacts based on both a 5.50% and 6.00% tax levy increase. Therefore, at the October 26th and November 9th meetings, Council reviewed information and directed staff to proceed with presenting information at the budget hearing based on a 6.00% property tax levy increase when compared to 2015 Final Property Tax Levy. Based on the outcome of the budget presentation and the Truth in Taxation Public Hearing, council directed staff to proceed with the budgets and tax levies as proposed. Therefore, formal adoption of the 2016 Budget, 2016 Final Levy adoption for the City and HRA levies, and the 2016 – 2025 Capital Improvement Plan are scheduled for this evening. 2015 City Final Levy, 2016 Preliminary Adopted Levies and General Fund Budget A synopsis of prior year levy information and the 2016 Proposed Preliminary Levies and General Fund Budget is shown below: 1. The 2015 Final Levy was $26,985,377, which was 5.50% or $1,407,469 more than 2014. 2. The 2016 Preliminary Property Tax Levy was adopted on September 21st at $28,738,974, which is approximately 6.50% or $1,753,597 more than the 2015 Final Levy. 3. The Proposed 2016 General Fund Budget is $34,082,737, which is an increase of approximately 4.47% or $1,458,299 compared to the 2015 Adopted Budget. 4. The 2016 Preliminary HRA Levy adopted on September 8, 2015, is $1,011,208, which is an increase of approximately 6.08% or $57,970 compared to the 2015 Final HRA Levy. City Council Meeting of December 21, 2015 (Item No. 8a) Page 3 Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIP The proposed breakdown of the 6.00% Final Property Tax Levy by fund is shown below: 2015 2016 Dollar Change Percent Change Final Proposed From 2015 From 2015 TAX CAPACITY BASED TAX LEVY General Fund $22,364,509 $23,597,282 1,232,773$ 5.51% Debt Service - Current 1,423,161 1,517,667 94,506 6.64% Debt Service - Future - 477,825 477,825 N/A Capital Replacement Fund 1,442,700 1,767,700 325,000 22.53% Park Improvement Fund 810,000 810,000 - 0.00% Sidewalk and Trails Fund 645,007 - (645,007) -100.00% Employee Administration Fund 200,000 200,000 - 0.00% Housing Rehab Fund 100,000 100,000 - 0.00% Discretion of City Council - 134,000 134,000 N/A TOTAL TAX LEVIES $26,985,377 $28,604,474 $1,619,097 6.00% The 2016 Proposed Property Tax Levy increase of 6.00% is consistent with the information presented at the Truth in Taxation Public Hearing December 7, 2015. 2016 HRA Levy This levy was originally implemented in St. Louis Park due to legislative changes in 2001 which significantly reduced future tax increment revenues. The City Council elected at that time to use the levy proceeds for future infrastructure improvements in redevelopment areas. Thus far, some of the HRA Levy proceeds have been used to fund infrastructure studies, analyses for future improvement projects and to pay for the City’s share of Highway 7 and Louisiana. By law, these funds could also be used for other housing and redevelopment purposes, but they are committed to funding Highway 7 and Louisiana until 2021 based on the current Long Range Financial Management Plan. Given the significant infrastructure needs facing the City in the future, staff recommends the HRA Levy continue at the maximum allowed by law for the 2016 budget year. The HRA Levy cannot exceed 0.0185% of the estimated market value of the City. Therefore, staff has calculated the maximum HRA Levy for 2016 to be $1,011,208 based on valuation data from Hennepin County. This is an increase of $57,970 or 6.08% from 2015. The EDA is allowed to authorize the HRA levy and then forward this recommendation to the City Council. 2016 Budgets Monday night the City Council will consider a resolution for adoption that includes summary budget data for the General, Enterprise, Internal Service, Special Revenue, and select Capital Projects Funds. These summaries are consistent with previous years, as staff thought it was important to continue showing a more comprehensive picture of the resources the City is entrusted with and, subsequently, have the City Council formally adopt these budgets. Therefore, the total expenditures that the City Council adopts for budget purposes is approximately $63.04 million, with $34.1 million or 54.09% attributed to the General Fund with the remaining $28.94 million or 45.91% attributed to the other funds. City Council Meeting of December 21, 2015 (Item No. 8a) Page 4 Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIP 2016 – 2025 Capital Improvement Plan (CIP) The City Council reviewed the 2016 – 2025 CIP at study sessions throughout the 2016 Budget process. The CIP will continue to have aggressive infrastructure construction. This is evident with the Highway 7 and Louisiana Avenue interchange project that was completed in 2015, Highway 100 improvements that began in late 2014, and aggressive work on city owned utility infrastructure. In addition, continued investment in the regular cycle of street reconstruction projects and the replacement of existing vehicles and equipment is occurring. Therefore, it is vital that careful planning continues to occur in an effort to maintain financial stability while still investing in capital. The 2016 – 2025 CIP shows that:  $198 million in planned investment over the next ten years  $181 million of these costs are being paid for from sources or revenue streams the City has direct control of such as cash on hand, tax levy dollars, utility rates, future bonding, etc.  $17 million of this is planned as non-City resources such as federal, and state government, Municipal State Aid (MSA), (not all of these dollars have been committed by these entities). Also, $6.9 million of CIP projects do not have an identified funding source. Only those projects included in the CIP for 2016 are authorized during the next year. Years 2017 - 2025 are for planning purposes only and do not in all cases represent a firm commitment to construct or purchase any specific assets until authorized by the City Council. Any projects estimated to cost more than $100,000 will be formally bid and brought back for acceptance by the City Council. Utility Funds The changes in utility rates for 2016 were formally adopted by the City Council on October 19, 2015 for consumption or services provided beginning on January 1, 2016. These rates are consistent with the goal of achieving long-term sustainability in the funds. Detailed information is included in the attachment “2016 Proposed Rates – Impact on a Residential Property”. For 2016, the approximate cumulative effect on a typical residential property for all the utility rate adjustments would be an increase of $61 per year, or approximately $5.08 per month. This equates to an approximate 5.95% overall increase in utility rates for 2016 when compared to 2015. This calculation is based on a family of four using 30 units of water per quarter (22,500 gallons), and 60 gallon solid waste service which is consistent with prior scenarios presented. Estimated City Impact for 2016 on Taxes and Utilities Based on a 6.00% levy increase and realizing there are many variables in estimating the City impact on a residential homestead property, a “typical” property in St. Louis Park valued at approximately $226,600 for taxes payable in 2016 and having typical utilities as discussed earlier in the report, would experience an overall increase of approximately $6.44 per month or approximately $77.23 for the entire year. Of this estimated $77.23 increase, approximately $16.47 would be attributed to the City’s share of property taxes, and $60.76 to utility rate adjustments. City Council Meeting of December 21, 2015 (Item No. 8a) Page 5 Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIP RESOLUTION NO. 15-____ RESOLUTION ADOPTING THE 2016 GENERAL FUND BUDGET, 2016 BUDGETS AND AUTHORIZING THE 2016 FINAL PROPERTY TAX LEVY WHEREAS, The City of St. Louis Park is required by Charter and State law to approve a resolution setting forth an annual tax levy to the Hennepin County Auditor; and WHEREAS, Minnesota Statutes currently in force require approval of a property tax levy and a budget in December of each year; and WHEREAS, the City Council has received the budget document; NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of St. Louis Park that the 2016 General Fund Budget and 2016 Budgets are adopted as presented in the 2016 budget document; and Summary of Budgeted Revenues 2015 2016 Dollar Chng. % Change Adopted Adopted 2015 to 2016 2015 to 2016 AVAILABLE RESOURCES General Fund Revenues: General Property Taxes 22,364,509$ 23,597,282$ 1,232,773 5.51% Licenses and Permits 3,248,158 3,496,177 248,019 7.64% Intergovernmental 1,292,277 1,419,017 126,740 9.81% Charges for Services 1,907,292 1,956,593 49,301 2.58% Fines, Forfeits, and Penalties 320,200 341,200 21,000 6.56% Investment Earnings 140,000 140,000 - 0.00% Miscellaneous Revenue 1,500,243 1,259,887 (240,356) -16.02% Transfers In 1,851,759 1,872,581 20,822 1.12% Total General Fund Revenues:32,624,438$ 34,082,737$ 1,458,299 4.47% General Fund Summary of Budgeted Expenditures 2015 2016 Dollar Chng. % Change Adopted Adopted 2015 to 2016 2015 to 2016 General Government 8,271,762 8,657,073 385,311 4.66% Public Safety 14,373,278 14,944,889 571,611 3.98% Operations and Recreation 9,801,414 10,214,056 412,642 4.21% Non-Departmental 177,984 266,719 88,735 49.86% Total General Fund 32,624,438$ 34,082,737$ 1,458,299 4.47% City Council Meeting of December 21, 2015 (Item No. 8a) Page 6 Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIP 2015 2016 Final Proposed HRA Levy Fund Total HRA Levy Revenues 953,238$ 1,011,427$ Total HRA Levy Expenditures 3,079,980 966,041 Cable TV Fund Total Cable TV Revenues 666,000 664,000 Total Cable TV Expenditures 811,967 788,483 Development Fund Total Development Fund Revenues 3,221,149 6,693,125 Total Development Fund Expenditures 2,578,759 1,873,635 CDBG Fund Total CDBG Revenues 199,308 179,000 Total CDBG Expenditures 199,308 179,000 Housing Rehabilitation Fund Total Housing Rehab Revenues 1,412,623 1,311,952 Total Housing Rehab Expenditures 783,802 720,839 Water Utility Fund Total Water Revenues 6,047,498 6,232,419 Total Water Expenses 6,883,012 8,099,290 Sewer Utility Fund Total Sewer Revenues 6,264,288 6,444,588 Total Sewer Expenses 7,678,139 7,457,019 Solid Waste Utility Fund Total Solid Waste Revenues 3,266,600 3,417,200 Total Solid Waste Expenses 3,233,902 3,453,974 Storm Water Utility Fund Total Storm Water Revenues 2,493,275 2,741,638 Total Storm Water Expenses 6,024,656 4,197,994 Employee Administration Fund Total Employee Benefits Revenues 597,660 512,500 Total Employee Benefits Expenses 981,400 1,023,000 Uninsured Loss Fund Total Uninsured Loss Revenues 183,400 182,000 Total Uninsured Loss Expenses 172,499 179,794 Enterprise, Internal Service, Special Revenue Summary of Budgeted Revenues and Expenditures and Select Capital Project Funds City Council Meeting of December 21, 2015 (Item No. 8a) Page 7 Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIP BE IT FURTHER RESOLVED, that the City Council of the City of St. Louis Park, Hennepin County, Minnesota, that the following sums of money be levied in 2015, collectible in 2016 upon the taxable property in said City of St. Louis Park for the following purposes: 2016 FINAL TAX LEVY 2016 TAX CAPACITY BASED TAX LEVY General Fund $23,597,282 Debt Service - Current 1,517,667 Debt Service - Future 477,825 Capital Replacement Fund 1,767,700 Park Improvement Fund 810,000 Employee Administration Fund 200,000 Housing Rehab Fund 100,000 Discretion of City Council 134,000 TOTAL TAX LEVIES $28,604,474 Reviewed for Administration: Adopted by the City Council December 21, 2015 City Manager Mayor Attest: City Clerk City Council Meeting of December 21, 2015 (Item No. 8a) Page 8 Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIP RESOLUTION NO. 15-____ RESOLUTION APPROVING THE 2016 FINAL HRA LEVY WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.108 (the “EDA Act”), the City Council of the City of St. Louis Park created the St. Louis Park Economic Development Authority (the "Authority"); and WHEREAS, pursuant to the EDA Act, the City Council granted to the Authority all of the powers and duties of a housing and redevelopment authority under the provisions of the Minnesota Statutes, sections 469.001 to 469.047 (the "HRA Act"); and WHEREAS, Section 469.033, subdivision 6 of the Act authorizes the Authority to levy a tax upon all taxable property within the City to be expended for the purposes authorized by the HRA Act; and WHEREAS, such levy may be in an amount not to exceed 0.0185 percent of taxable market value of the City; and WHEREAS, for 2016, the Final HRA Levy amount will be $1,011,208; and WHEREAS, the Authority has filed its budget for the special benefit levy in accordance with the budget procedures of the City; and WHEREAS, based upon such budgets the Authority will levy all or such portion of the authorized levy as it deems necessary and proper; NOW THEREFORE BE IT RESOLVED by the St. Louis Park City Council: 1. That approval is hereby given for the Authority to levy, for taxes payable in 2016, such tax upon the taxable property of the City as the Authority may determine, subject to the limitations contained in the HRA Act. Reviewed for Administration: Adopted by the City Council December 21, 2015 City Manager Mayor Attest: City Clerk City Council Meeting of December 21, 2015 (Item No. 8a) Page 9 Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIP RESOLUTION NO. 15-____ RESOLUTION ADOPTING THE 2016 - 2025 CAPITAL IMPROVEMENT PROGRAM WHEREAS, the City Council of the City of St. Louis Park, Minnesota has received a report from the Controller related to proposed capital spending for 2016 - 2025; and WHEREAS, it is necessary for the city to maintain and replace its capital stock in order to enhance the city’s attractiveness to residents and businesses; and WHEREAS, good planning is a necessary part of the stewardship that the City Council and staff exercise over the physical plant of the city; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis Park, MN, that: 1. The 2016 - 2025 Capital Improvements Program is hereby adopted. 2. The City Manager is authorized to purchase or undertake the items included in the fiscal year 2016 funded portion of the plan as allowed by the City Charter and state statutes. 3. All purchases required to be competitively bid must come before the City Council for final approval. Reviewed for Administration: Adopted by the City Council December 21, 2015 City Manager Mayor Attest: City Clerk Capital Improvement ProgramCity of St. Louis Park, MNFUNDING SOURCE SUMMARY2016 2025thruTotal2016 2017 2018 2019 2020Source2021 2022 2023 2024 2025Cable TV - Time Warner Equipment Grant714,100324,750 10,250 14,100 79,600 285,400Capital Replacement Fund35,218,8343,507,981 3,261,176 2,665,928 8,111,935 3,723,769 2,581,553 3,570,302 3,093,832 2,366,483 2,335,875E-911 Funds664,31637,391 111,325 36,325 106,325 36,325 36,325 116,325 36,325 111,325 36,325EDA Development Fund235,000235,000G.O. Bonds28,890,7901,745,397 1,621,959 5,145,333 11,365,601 5,747,000 1,913,000 1,052,500 100,000 100,000 100,000Hockey Association1,041,660104,166 104,166 104,166 104,166 104,166 104,166 104,166 104,166 104,166 104,166HRA Levy1,012,5421,012,542Municipal State Aid14,328,000882,000 1,522,000 1,770,000 3,381,000 908,000 816,500 908,500 1,380,000 1,380,000 1,380,000Park Improvement Fund16,797,5005,888,500 1,690,000 1,543,000 1,051,000 1,183,500 1,097,000 877,500 1,095,000 1,412,000 960,000Pavement Management Fund26,226,4082,162,500 3,324,250 2,547,370 2,233,750 2,951,788 3,198,250 2,105,750 2,564,250 2,564,250 2,574,250Police & Fire Pension3,026,317713,385 275,000 450,432 256,500 182,000 33,000 150,000 106,500 589,500 270,000PW Engineering Budget68,00065,000 3,000PW Operations Budget3,644,901356,388 362,364 322,605 375,547 343,008 347,489 357,500 405,500 360,500 414,000Reilly Industries17,50017,500Sanitary Sewer Utility8,481,5031,930,728 721,333 777,769 791,333 796,001 808,335 779,001 809,001 829,001 239,001Solid Waste Utility120,83164,39536,436 10,00010,000Special Assessments2,944,625121,000 675,625 158,00030,000 690,0001,200,000 70,000State of Minnesota1,040,0001,040,000Stormwater Utility10,679,5013,498,062 1,441,667 781,103 718,667 543,667 1,574,667 577,667 859,667 348,667 335,667Tax Increment - Elmwood3,026,5093,026,509Tax Increment Financing75,00075,000U.S. Government800,000800,000Unfunded6,900,000100,000 100,000 100,000 100,000 100,000 100,000 100,000 6,100,000 100,000Water Utility27,332,7411,612,976 3,501,332 1,885,768 2,091,832 2,218,999 3,906,334 2,394,000 2,456,000 4,712,500 2,553,00023,184,619 19,597,447 23,482,38630,780,25619,153,623193,286,578GRAND TOTAL17,206,619 13,093,211 13,110,241 22,205,892 11,472,284Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 10 Capital Improvement ProgramCity of St. Louis Park, MNPROJECTS & FUNDING SOURCES BY DEPARTMENT2016 2025thruTotal2016 2017 2018 2019 2020Department2021 2022 2023 2024 2025Buildings3115000130,000City Hall Garage Overhead Doors30,00031160001100,000City Hall Roof Top AC Units (two units)100,0003116000320,000City Hall Garage Unit Heaters20,00031170001300,000City Hall Council Chambers Remodel300,0003117000230,000City Hall Remodel 2nd and 3rd floor restrooms30,0003119000115,000City Hall Electric Vehicle Charger15,0003120000160,000City Hall Timber Retaining Walls60,00031210001City Hall/Police Campus Landscaping15,00015,00031230001City Hall ITE & Gould Elect Panel Replacement25,00025,00031250001CH Windows, Wall Coatings and Caulking Replacement200,000200,0003216000220,000PD Dispatch Kitchen Remodel20,0003217000160,000Police Station replace boiler system60,00032180002Police Station - Replace office furnishings210,000210,00032180004Police Station Concrete Sidewalk15,00015,00032190001Police Station Remodel Restrooms75,00075,0003219000245,000Police StationShooting Range Exhaust45,000322000017,000Police Station Water Heaters7,00032230001Police Station Replace Light Fixtures80,00080,00032230003Police- Replace Ceiling Tiles40,00040,0003314000215,00015,000MSC & Fire Stations CO Nox Sensor Replacement75,00015,00015,00015,0003316000120,000MSC Bay'sConvert HVAC to Digital Controls20,0003317000120,000MSC Convert Exterior HID to LED20,000Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 11 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 20257,804,000175,000 537,000 65,000 5,340,000 317,000Capital Replacement Fund340,000 425,000 195,000 165,000 245,0007,804,000175,000 537,000 65,000 5,340,000 317,000Buildings Total340,000 425,000 195,000 165,000 245,0003317000275,000MSC Service Bay Sealant and Stripping75,0003317000312,000MSC Manual Wash Replacement12,00033180001MSC Service Bays-Striping0033180002MSC Fuel Station Pump Controls25,00025,0003319000115,000MSC Air Compressor Replacement15,0003319000250,000MSC 3rd Bay Sealant and Stripping50,00033190003180,000MSC Car Wash Unit Replace with Automatic180,0003320000350,000MSC 2nd Bay-Sealant50,00033210001MSC 2nd Floor Office Carpeting/Floor Covering15,00015,00033210002MSC Paint Booth Maintenance25,00025,00033220001MSC Bays 1, 2 & 3 Roofing400,000400,00033220002MSC Campus Landscaping10,00010,00033240001MSC Interior Light Fixtures Replacment100,000100,00033250001MSC Fuel Station Replacement50,00050,00034160002100,000Fire Stations 1 & 2 Apparatus bay floor coating100,0003416000320,000Fire Stations 1 & 2 Garage Door Loops Closing Sys20,00034180001Fire Station 1 & 2 audio/visual replacements10,00010,0003419000150,000Fire Station #1 Training Tower modifications50,0003424001FS #1 and #2 Carpet Replacement35,00035,00035240001Fire Station #1 and #2 Landscaping15,00015,0003525001Fire Station #2 Replace light fixtures45,00045,000361900025,000,000Westwood Naturce Center new building5,000,0003717000160,000Rec Center Remodel Offices60,0007,804,000175,000 537,000 65,000 5,340,000 317,000Buildings Total340,000 425,000 195,000 165,000 245,000Cable TV11151001120,000Van Cameras120,0001115100220,000Van Camera Cases20,000Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 12 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 20251115100313,000Van Camera Cables13,0001115100415,000LCD monitors15,000111510052,500Hard-Drive Video Recorder2,500111510066,000Converter for Recorder6,0001115100736,000Tripods for On Location36,0001115100816,500Video Switcher16,500111510094,200SD/HD converter4,200111510101,500DVD recorders1,500111520028,500Server for channel 968,5001115200445,000Community Room video production equipment45,00011161001750Announcer Headsets75011161002500Shotgun mics50011161003300Hand-held mics3001116100435,000Replacement edit systems35,000111710012,000Wireless mic systems2,000111710027,000CG7,00011171003250CD Player250111720061,000Announcer intercom,1,00011181001300-foot audio snake & reel2,0002,00011181002Announcer Monitor3003001118100350-foot audio snake40040011181004Behringer Audio Equipment1,5001,50011181005Camcorders7,5007,50011181006DVD recorders1,5001,50011181007Unit pro light kit90090011191001500DVD Recorders5001119100230,000Slow-motion replay30,0001119100370012-channel audio mixer70011191004500Shotgun mics50011191005300Hand-held mics3001119100610,200NLE stations10,20011191007900Microphones900111910081,500Tripods1,5001119100935,000Replacement edit systems35,00011201001120,000Van Cameras120,000Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 13 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 2025714,100324,750 10,250 14,100 79,600 285,400Cable TV - Time Warner Equipment Grant714,100324,750 10,250 14,100 79,600 285,400Cable TV Total1120100220,000Van Camera Cases20,0001120100313,000Van Camera Cables13,0001120100415,000LCD monitors15,0001120100515,000Studio cameras15,00011201006900Microphones90011201007900Camera monitors900112010082,500Hard-Drive Video Recorder2,500112010096,000Conveter for Recorder6,0001120101036,000Tripods for On Location36,000112010114,200SD/HD converter4,2001120101216,500Video Switcher16,500112010131,500DVD recorder1,5001120101428,200Playback systems28,200112010154,500Production switcher4,500112010161,200Teleprompter1,200714,100324,750 10,250 14,100 79,600 285,400Cable TV TotalEngineering401440002,250,000 650,000Storm Water- Bass Lake Preserve Rehab2,900,00040151600121,000 110,00037,500Parking Lot Rehabilitation Project564,000158,0005,500 10,0002,000 120,00040154001300,000Storm Water- MCWD Cold Storage Site300,00040160003463,500Concrete Replacement- SW-C&G-CB463,500401610002,964,250Street - Local Street Rehab (Area 5)2,964,25040161100782,000Street - MSA Street Rehab (Flag & Quentin)782,00040161200269,388Street Mt Proj - Sealcoat Streets (Area 1)269,3884016130047,50046,500Traffic Signal - Repl Control Cabinets146,50052,50040162000917,000CTP! Sidewalk - Trail - Bikeway Installations 2016917,00040163000420,000Sanitary Sewer- Mainline Rehab (Area 420,000Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 14 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 20255)40164000500,000Storm Water- Walker Pond Expansion500,00040170003279,250Concrete Replacement- SW-C&G-CB279,250401710006,144,000Street - Local Street Rehab (Area 4)6,144,00040171001431,250Street - Reconstruction (Utica Avenue)431,250401711001,119,500Street - MSA Street Rehab (Louisiana Ave)1,119,50040171101402,500Street - MSA Street Rehab (Texas S of Mtka)402,50040171200642,364Street Mt Proj - Sealcoat Streets (Area 2 & 3)642,3644017130075,000Traffic Signal- CLR at Louisiana75,000401717001,150,000Bridge - W 37th St @ Minnehaha Creek1,150,000401720001,223,000CTP! Sidewalk - Trail - Bikeway Installations 20171,223,00040173000440,000Sanitary Sewer- Mainline Rehab (Area 6)440,00040174000450,000Storm Water- Louisiana Oaks Pond Rehab450,00040175000275,000Water- Rehab WTP 16 Reservior275,00040180003Concrete Replacement- SW-C&G-CB279,250279,25040181000Street - Local Street Rehab (Area 6)4,223,5004,223,50040181100Street - MSA Street Rehab (CLR W of Lou)1,380,0001,380,00040181200Street Mt Proj - Sealcoat Streets (Area 4)272,105272,10540181600Parking Lot - City Hall East110,000110,00040181601Parking Lot - MSC70,62070,62040181700Bridge - Louisiana Ave @ Minnehaha Creek1,495,0001,495,00040182000CTP! Sidewalk - Trail - Bikeway Installations 20184,962,0004,962,00040183000Sanitary Sewer- Mainline Rehab (Area 7)460,000460,00040184000Storm Water- Oregon Pond Basin Rehab400,000400,00040186000Street- W36th Street Reconstruction2,039,0512,039,05140186001Street- Wooddale Ave Reconstruction2,000,0002,000,00040190003279,250Concrete Replacement- SW-C&G-CB279,250401910003,269,000Street - Local Street Rehab (Area 7)3,269,000401911001,380,000Street - MSA Street Rehab (CLR E of Lou)1,380,000Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 15 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 2025401911011,000,500Street - MSA Street Rehab (Ottawa)1,000,500401911021,000,500Street - MSA Street Rehab (Beltline Blvd)1,000,50040191200278,047Street Mt Proj - Sealcoat Streets (Area 5)278,047401920006,214,000CTP! Sidewalk - Trail - Bikeway Installations 20196,214,00040193000480,000Sanitary Sewer- Mainline Rehab (Area 8)480,00040194000270,000Storm Water- Browndale Pond Rehab270,0004019400190,000Storm Water- Sumter Pond Rehab90,00040195000935,000Water - Recoat Reservoir 2 @ WTP #6935,000401970003,000Street - Excelsior Blvd Resurfacing3,00040199000150,2303,978,228SWLRT- Base Design4,128,4584019900168,617SWLRT- LRCI- Trail (Louisiana to Wooddale)68,61740199002382,607SWLRT- LRCI- Xenwood Underpass382,60740199003126,943990,040SWLRT- LRCI- CSAH 25 @ Beltline Blvd.1,116,98340200003279,250Concrete Replacement- SW-C&G-CB279,250402010005,158,500Street - Local Street Rehab (Area 8)5,158,50040201100808,000Street - MSA Street Rehab (Texas Ave N of Mtka)808,00040201200284,008Street Mt Proj - Sealcoat Streets (Area 6)284,00840201300100,000Railroad - Whistle Quiet Zones100,0004020160038,588Parking Lot - City Hall Lower38,5884020160117,850Parking Lot - Fire Stn #117,8504020160212,600Parking Lot - Fire Stn #212,600402020005,647,000CTP! Sidewalk - Trail - Bikeway Installations 20205,647,00040203000510,000Sanitary Sewer- Mainline Rehab (Area 1)510,00040204000109,000Storm Water- Lamplighter Pond Rehab109,00040204001109,000Storm Water- Otten Pond Rehab109,00040210003Concrete Replacement- SW-C&G-CB279,250279,25040211000Street - Local Street Rehab (Area 1)5,519,0005,519,00040211100Street - MSA Street Rehab (W28th St)816,500816,50040211101Street - MSA Street Rehab (Edgewood/Cambridge)690,000690,00040211200Street Mt Proj - Sealcoat Streets (Area 289,989289,989Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 16 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 20257)40212000CTP! Sidewalk - Trail - Bikeway Installations 20211,813,0001,813,00040213000Sanitary Sewer- Mainline Rehab (Area 2)520,000520,00040214000Storm Water- Twin Lakes Sed Basin Rehab1,242,0001,242,00040215000Water- Recoat Elevated Water Tower #21,540,0001,540,00040220003Concrete Replacement- SW-C&G-CB279,250279,25040221000Street - Local Street Rehab (Area 2)4,476,5004,476,50040221100Street - MSA Street Rehab (Shelard Pkwy)908,500908,50040221200Street Mt Proj - Sealcoat Streets (Area 8)290,000290,00040222000CTP! Sidewalk - Trail - Bikeway Installations 2022952,500952,50040223000Sanitary Sewer- Mainline Rehab (Area 3)540,000540,00040224000Storm Water- Westdale Sed Basin Rehab248,000248,00040230003Concrete Replacement- SW-C&G-CB279,250279,25040231000Street - Local Street Rehab (Area 3)4,975,0004,975,00040231100Street - MSA Street Rehab (TBD)1,380,0001,380,00040231200Street Mt Proj - Sealcoat Streets (Area 1)300,000300,00040233000Sanitary Sewer- Mainline Rehab (Area 4)570,000570,00040234000Storm Water- Cedar Manor Lake Rehab528,000528,00040240003Concrete Replacement- SW-C&G-CB279,250279,25040241000Street - Local Street Rehab (Area 4)5,025,0005,025,00040241100Street - MSA Street Rehab (TBD)1,380,0001,380,00040241200Street Mt Proj - Sealcoat Streets (Area 2)300,000300,00040243000Sanitary Sewer- Mainline Rehab (Area 5)580,000580,00040244000Storm Water- Flood Area #241,200,0001,200,00040246000Street - I394 Ramp / CD Road Improvement3,000,0003,000,00040247000Street - Excelsior Blvd (Lou - W City Lim)3,000,0003,000,00040250003Concrete Replacement- SW-C&G-CB279,250279,25040251000Street - Local Street Rehab (Area 5)5,025,0005,025,000Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 17 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 202527,640,7901,645,397 1,438,625 4,962,000 11,182,268 5,647,000G.O. Bonds1,813,000 952,5001,012,5421,012,542HRA Levy14,228,000782,000 1,522,000 1,770,000 3,381,000 908,000Municipal State Aid816,500 908,500 1,380,000 1,380,000 1,380,00026,226,4082,162,500 3,324,250 2,547,370 2,233,750 2,951,788Pavement Management Fund3,198,250 2,105,750 2,564,250 2,564,250 2,574,25068,00065,000 3,000PW Engineering Budget1,702,401186,888 187,364 142,105 189,547 151,508PW Operations Budget150,489 155,000 197,500 147,000 195,00017,500Reilly Industries17,5006,720,000640,000 660,000 680,000 700,000 730,000Sanitary Sewer Utility740,000 760,000 790,000 800,000 220,0002,944,625121,000 675,625 158,000 30,000Special Assessments690,0001,200,000 70,0001,040,0001,040,000State of Minnesota9,951,0003,380,000 1,375,000 675,000 635,000 493,000Stormwater Utility1,517,000 523,000 803,000 275,000 275,0003,026,5093,026,509Tax Increment - Elmwood75,00075,000Tax Increment Financing800,000800,000U.S. Government6,000,000Unfunded6,000,00025,487,250845,250 3,334,000 1,771,000 1,889,500 2,200,000Water Utility3,790,000 2,300,000 2,350,000 4,607,500 2,400,000126,940,0259,763,035 13,391,864 17,849,526 20,214,065 13,111,296Engineering Total12,715,239 7,704,750 8,084,750 16,991,250 7,114,25040251100Street - MSA Street Rehab (TBD)1,380,0001,380,00040251200Street Mt Proj - Sealcoat Streets (Area 3)310,000310,00053245500Water Project - WTP #6 GAC Upgrade2,190,0002,190,00053245501Reilly Site - Install Monitor Well (W413)35,00035,000126,940,0259,763,035 13,391,864 17,849,526 20,214,065 13,111,296Engineering Total12,715,239 7,704,750 8,084,750 16,991,250 7,114,250Fire6516000187,000SCBA Fill Stations87,0006517000177,300SCBA Radio Integration77,30065180001UAV10,00010,000659900018,000 8,0008,000Thermal Imagers88,00016,0008,000 8,0008,000 16,0008,0006599000220,00020,000Outside Warning Sirens80,00020,00020,00065990003324,594SCBA697,877373,28365990004Hydraulic Rescue Tool30,00030,0006599000532,00032,000Auto-CPR Device64,000Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 18 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 20251,527,427549,844 197,300 26,000 33,500 32,000Capital Replacement Fund178,000 14,000 436,283 8,000 52,5001,527,427549,844 197,300 26,000 33,500 32,000Fire Total178,000 14,000 436,283 8,000 52,50065990006125,000Turnouts275,000150,0006599000730,000Helmets/Boots65,00035,000659900085,2505,500Air Monitors23,2506,0006,5006599000930,000AED's30,0001,527,427549,844 197,300 26,000 33,500 32,000Fire Total178,000 14,000 436,283 8,000 52,500Operations & Recreation201300805,000 5,000Oak Hill Park Northern Lights (LED)10,0002020xxxx0Parking Lot Seal Coat - Oak Hill Park020225007Rec Center Arenas Rubber Floor Replacement250,000250,0002023xxoxParking Lot Seal Coat - Dakota Park002023xxxxParking Lot Seal Coat - Aquila Park002116020117,000Aquila Park Building Locks and Security Camera17,0002116110360,000Carpenter Park Ball Field Fence Replacement60,0002116130412,000Cedar Knoll Park/Carlson Field Scoreboard12,0002116270648,500Playground Eqpt Repl - Jersey Park48,5002116290748,500Playground Eqpt Repl - Justad Park48,5002116361834,000Louisiana Oaks Park Bldg Cameras & Door Lock Add.34,0002116420558,500Playground Eqpt Repl - Nelson Park58,5002116442013,500Trail Seal Coat - Oak Hill Park13,5002116522040,000Trail Reconstruction - Shelard Park40,0002116640898,500Playground Eqpt Repl - Wolfe Park98,5002116642113,500Trail Seal Coat - Wolfe Park13,5002116642516,000Trail Lights (LED) at Wolfe Park16,00021170302450,000Aquila Park Fields 1-4 Lights and Poles Upgrade450,0002117050760,000Playground Eqpt Repl - Bass Lake Park60,0002117210617,500Parking Lot Seal Coat - Fern Hill Park17,5002117440220,000Oak Hill Park Additional Shelter near 20,000Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 19 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 2025Splash Pad2117440460,000Oak Hill Park Splash Pad Feature Replacement60,0002117442250,000Oak Hill Park Central Shelter Replacement50,0002117490850,000Playground Eqpt Repl - Rainbow Park50,0002117580960,000Playground Eqpt Repl - Twin Lakes Park60,0002117592110,000Victoria Lake Landscaping10,0002117611060,000Playground Eqpt Repl - Webster Park60,0002117642410,000Wolfe Park Pergola Work10,0002117991930,000Trail Sealcoat - Various Trails30,00021180301Court Resurface (BB) Aquila Park7,5007,50021180305Parking Lot Resurface - Aquila Park35,00035,00021180321Repaint Park Building - Aquila Park7,0007,00021180611Playground Eqpt Repl - Birchwood Park62,50062,50021180622Repaint Park Building - Birchwood Park7,0007,00021181023Repaint Park Building - Browndale Park7,0007,00021181124Repaint Park Building - Carpenter Park6,0006,00021181306Parking Lot Resurface - Cedar Knoll Park8,0008,00021181325Repaint Park Building - Cedar Knoll Park2,0002,00021181707Parking Lot Resurface - Creekside Park8,0008,00021181826Repaint Park Building - Dakota Park4,0004,00021182127Repaint Park Building - Fern Hill Park5,0005,00021183628Repaint Park Building - Louisiana Oaks Park7,0007,00021184208Parking Lot Resurface - Nelson Park8,0008,00021184229Repaint Park Building - Nelson Park7,0007,00021184309Parking Lot Resurface - Northside Park35,00035,00021184312Playground Eqpt Repl - Northside Park62,50062,50021184330Repaint Park Building - Northside Park6,0006,00021184431Repaint Park Building - Oak Hill Park9,0009,00021185102Court Resurface (BB) Roxbury Park2,0002,00021185113Playground Eqpt Repl - Roxbury Park62,50062,50021185203Court Resurface (BB) Shelard Park2,0002,00021185214Playground Eqpt Repl - Shelard Park62,50062,500Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 20 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 202521186210Parking Lot Resurface - Westwood Hills NC35,00035,00021186404Court Resurface (BB) Wolfe Park3,0003,0002119030420,000Parking Lot Seal Coat - Aquila Park20,0002119061310,000Trail Reconstruction - Birchwood Park10,0002119071410,000Trail Reconstruction - Jordan Trail10,0002119100285,000Browndale Park Hockey Rink Lights85,0002119180520,000Parking Lot Seal Coat - Dakota Park20,0002119181575,000Trail Reconstruction - Dakota Park75,0002119211645,000Trail Reconstruction - Fern Hill Park45,0002119540665,000Playground Eqpt Repl - Sunshine Park65,0002119560765,000Playground Eqpt Repl - Texa-Tonka Park65,0002119630865,000Playground Eqpt Repl - Willow Park65,0002119990120,000ADA Connections to Picnic Shelter/Playgrounds20,0002119991730,000Trail Sealcoat - Various Trails30,0002120041913,500Trail Seal Coat - Bass Lake13,5002120091215,000Trail Reconstruction - Bronx Park15,0002120301320,000Trail Reconstruction - Keystone Park20,0002120431420,000Trail Reconstruction - Northside Park20,0002120450265,000Playground Eqpt Repl - Oregon Park65,0002120540365,000Playground Eqpt Repl - Sunset Park65,00021206204100,000Playground Eqpt Repl - Westwood Hills NC100,0002120990115,000ADA Compliance Picnic Tables15,00021210411Trail Reconstruction - Bass Lake Park100,000100,00021211712Playground Eqpt Repl - Parkview Park60,00060,00021213614Trail Reconstruction - Louisiana Oaks Park65,00065,00021213801Playground Eqpt Repl - Meadowbrook Manor Park60,00060,00021214002Playground Eqpt Repl - Minikahda Vista Park60,00060,00021214415Trail Reconstruction - Oak Hill Park75,00075,00021214803Playground Eqpt Repl - Pennsylvania Park60,00060,00021216416Trail Reconstruction - Wolfe Park85,00085,00021219912Trail Reconstruction - Franklin45,00045,000Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 21 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 202521219913Trail Reconstruction - Jordan45,00045,00021220902Playground Eqpt Repl - Bronx Park65,00065,00021221403Playground Eqpt Repl - Cedar Manor Park60,00060,00021221604Playground Eqpt Repl - Center Park65,00065,00021222401ADA Trail Compliance - Cedar Manor Park Trail60,00060,00021224109Trail Reconstruction - Minnehaha Creek50,00050,00021230301Playground Eqpt Repl - Aquila Park85,00085,00021231102Playground Eqpt Repl - Carpenter Park65,00065,00021231503Playground Eqpt Repl - Cedarhurst Park65,00065,00021234611Trail Reconstruction - Otten Pond30,00030,00021235112Trail Reconstruction - Roxbury Park10,00010,00021235813Trail Reconstruction - Twin Lakes Park10,00010,00021240101Playground Eqpt Repl - Ainsworth Park65,00065,00021240130Repaint Park Building - Cedar Knoll Park2,0002,00021240306Repaint Park Building - Aquila Park7,0007,00021240317Trail Reconstruction - Aquila Park75,00075,00021240607Repaint Park Building - Birchwood Park7,0007,00021241002Playground Eqpt Repl - Browndale Park65,00065,00021241008Repaint Park Building - Browndale Park7,0007,00021241109Repaint Park Building - Carpenter Park6,0006,00021241118Trail Reconstruction - Carpenter Park50,00050,00021241811Repaint Park Building - Dakota Park4,0004,00021242112Repaint Park Building - Fern Hill Park5,0005,00021242719Trail Reconstruction - Jersey Park30,00030,00021243613Repaint Park Building - Louisiana Oaks Park7,0007,00021244214Repaint Park Building - Nelson Park7,0007,00021244315Repaint Park Building - Northside Park6,0006,00021244416Repaint Park Building - Oak Hill Park9,0009,00021253401Trail Reconstruction - Lamplighter Park40,00040,00021256202Trail Reconstruction - Westwood Hills NC30,00030,00021256403Wolfe Park Amphitheater Pavers100,000100,00021259903Trail Reconstruction100,000100,000Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 22 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 202521259904Playground Equipment Replacement200,000200,00021259905Park Shelter Replacement150,000150,00021259906Trail Lighting100,000100,000219944015,000 5,000Oak Hill Park Northern Lights (LED)10,0002199990220,000 20,00020,000 20,000Playground Woodchips200,00020,00020,000 20,00020,000 20,00020,00021999903100,000 100,00060,000Minnehaha Creek Trail Repayment360,000100,0002216412617,500Minnehaha Creek Revegitation17,5002217320325,000Knollwood Canoe Landing - Dredge and Rebuild25,0002219360310,000Louisiana Canoe Landing Landscape10,0002220611515,000Webster Park Community Garden15,0002299990168,000 70,00070,000 70,000Tree Replacement698,00070,00070,000 70,00070,000 70,00070,000231662036,000Westwood Hills NC Climbing Rock Phase II6,0002316622216,000Westwood Hills NC Key Fob for Pavilion16,0002316622360,000Westwood Hills NC Ravine Bridge Replacement60,0002316622455,000Westwood Hills NC Storge Garage (30'x30')55,0002316622814,000Westwood Hills NC Gate Camera Addition14,0002317622210,000Westwood Hills NC North Staircase Overlook10,0002317622320,000Westwood Hills NC-Prairie Deck Rebuild20,0002319621850,000Westwood Hills NC Boardwalk Deck Repl, Phase 250,000231962196,000Westwood Hills NC Brick House Furniture Repl6,00023196220150,000Westwood Hills NC Interpretive Exhibit Repl150,0002320621640,000Westwood Hills NC Staircase Rebuild40,00023216217Westwood Hills NC Furniture Repl10,00010,00023226210Westwood Hills NC Water Garden, Phase 245,00045,00023236214Westwood Hills NC Trail Bench Replacement15,00015,00023246220Westwood Hills NC Boardwalk Deck Repl, Phase 350,00050,00023256203Westwood Hills NC Boardwalk Deck Repl, Phase 1100,000100,00023256204Westwood Hills NC Waterfall50,00050,000Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 23 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 20252399622715,000 30,500Westwood Hillls NC Master Revegetation Plan68,00022,500241450195,650,000Outdoor Refrigerated Ice Rink5,650,0002416501130,000Rec Center Banquet Room Carpet & Floor Replacement30,0002416501255,000Rec Center Fire Alarm System Upgrade55,0002416501335,000Rec Center Gallery & Hallway Flooring35,000241650144,400,000Rec Center Arena Refrigeration Replacement4,400,00024165015110,000Rec Center Parking Lot Resurface110,00024165016105,000Rec Center Rubber Floor Replacement - East & West105,0002416501710,000Rec Center West Arena Press Area10,0002417501315,000Rec Center Banquet Room/Gallery Furniture Repl15,00024175014200,000Rec Center Pneumatics200,0002417501620,000Rec Center Hot Water Heater Tank Replacement20,0002417501750,000Rec Center Programming Office AC Replacement50,0002417501817,000Rec Center Programming Office Carpet17,00024185015Rec Center Banquet & Gallery Remodel50,00050,00024185016Rec Center Door Replacement (Front & Arena)120,000120,00024185017Rec Center Landscaping15,00015,00024185018Rec Center Roof Rplc-East Arena/Front Office500,000500,00024185019Rec Center Upstairs Bthrm&Ctrng Kitchn Remodel100,000100,00024185020Rec Center West Arena Window Replacement40,00040,0002419501015,000Rec Center Banquet Room & Gallery Chair Repl.15,0002419501150,000Rec Center East Arena Locker Room Remodel50,0002419501275,000Rec Center Front Office AC Replacement75,0002419501330,000Rec Center East Arena Score Boards30,00024205005300,000Rec Center Aquatic Park Amenity Replacement300,0002420500650,000Rec Center Banquet Room PA Upgrade50,00024205008200,000Rec Center Marquee200,0002420500960,000Parking Lot Seal Coat - Rec Center60,000Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 24 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 20252420501075,000Rec Center Aquatic Park Sun Shelter Repl75,0002420501110,000Rec Center Rental Skate Replacement (Ph 1)10,00024215006Rec Center Arena Compressor Rebuild15,00015,00024215007Rec Center Arena Rubber Floor250,000250,00024215008Rec Center Dasher Board Repair/Replacement12,00012,00024215009Rec Center Landscaping15,00015,000242150110Rec Center Rental Skate Replacement (Ph 2)10,00010,00024225006Rec Center East Arena Painting60,00060,00024225008Rec Center Scoreboard Replacement32,50032,50024235007Rec Center Arena Compressor Rebuild15,00015,00024235008Rec Center Arena Water Treatment Repl75,00075,00024235009Rec Center West Arena Painting75,00075,00024235010Rec Center West Arena Roof Replacement500,000500,00024245003Rec Center East Arena Dehumidification400,000400,00024245004Rec Center Generator Replacement500,000500,00024245005Rec Center Landscaping20,00020,0002516020945,000Rec Center Aquatic Park Drp Slide & Dvg Brd Repl45,0002516021020,000Rec Center Aquatic Park Umbrellas20,00025170211200,000Rec Center Aquatic Park Filter Replacement200,0002517021220,000Rec Center Aquatic Park Pump Rebuild20,000251702155,000Rec Center Concession Eqpt. Replacement5,0002520021725,000Rec Center Aquatic Park Main Drain Replacement25,000252050075,000Rec Center Concession Eqpt. Replacement5,00025220205Rec Center Aquatic Park Locker Room Remodel100,000100,00025230204Rec Center Concession Eqpt. Replacement5,0005,000259902125,000Rec Center Aquatic Park Deck Furniture20,0005,000 10,00040161103100,000Street - MSA Retaining Wall (Hwy 7 SFR)100,000501500011,800,000Meter Replacement1,800,000Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 25 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 202550164101155,000Street Light Annual Replacement (2016)155,0005016430114,500Traffic Signal Annual Painting (2016)14,50050174101160,000Street Light Annual Replacement (2017)160,0005017430115,000Traffic Signal Annual Painting (2017)15,00050184101Street Light Annual Replacement (2018)165,000165,00050184301Traffic Signal Annual Painting (2018)15,50015,50050194101170,000Street Light Annual Replacement (2019)170,0005019430116,000Traffic Signal Annual Painting (2019)16,00050204101175,000Street Light Annual Replacement (2020)175,0005020430116,500Traffic Signal Annual Painting (2020)16,50050214101Street Light Annual Replacement (2021)180,000180,00050214301Traffic Signal Annual Painting (2021)17,00017,00050224101Street Light Annual Replacement (2022)185,000185,00050224301Traffic Signal Annual Painting (2022)17,50017,50050234101Street Light Annual Replacement (2023)190,000190,00050234301Traffic Signal Annual Painting (2023)18,00018,00050244101Street Light Annual Replacement (2024)195,000195,00050244301Traffic Signal Annual Painting (2024)18,50018,50050254101Street Light Annual Replacement (2025)200,000200,00050254301Traffic Signal Annual Painting (2025)19,00019,0005316500130,000Water Well Rehab (SLP4)30,0005316500267,000Water Treatment Plant GAC Replacement (WTP1)67,0005316510120,000Sanitary Sewer LS Maint (LS #11)20,0005316530121,000Storm Sewer LS Maint (LS #1)21,0005316530242,000Annual Catch Basin Repairs (2016)42,0005317500132,000Water Well Rehab (SLP8)32,0005317500268,000Water Treatment Plant GAC Replacement (WTP4)68,0005317500351,000Water Well Rehab (SLP13)51,0005317510130,000Sanitary Sewer LS Maint (LS #13)30,0005317510215,000Sanitary Sewer LS Maint (LS #23)15,0005317530122,000Storm Sewer LS Maint (LS #7)22,0005317530244,000Annual Catch Basin Repairs (2017)44,00053185001Water Well Rehab (SLP11)52,00052,00053185101Sanitary Sewer LS Maint (LS #9)45,00045,000Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 26 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 202515,442,5051,417,271 1,416,510 1,721,562 1,557,569 2,145,735Capital Replacement Fund1,152,685 2,156,268 1,630,215 1,163,649 1,081,0411,041,660104,166 104,166 104,166 104,166 104,166Hockey Association104,166 104,166 104,166 104,166 104,166100,000100,000Municipal State Aid16,435,5005,651,500 1,690,000 1,498,000 1,051,000 1,183,500Park Improvement Fund1,062,000 877,500 1,050,000 1,412,000 960,00053185301Storm Sewer LS Maint (LS #8)23,00023,00053185302Annual Catch Basin Repairs (2018)46,00046,0005319500134,000Water Well Rehab (SLP14)34,0005319500271,000Water Treatment Plant GAC Replacement (WTP4)71,0005319500371,000Water Treatment Plant GAC Replacement (WTP1)71,0005319510145,000Sanitary Sewer LS Maint (LS #21)45,0005319510215,000Sanitary Sewer LS Maint (LS #4)15,0005319530125,000Storm Sewer LS Impr (Add SCADA to Stns 1/5/7/8/9)25,0005319530248,000Annual Catch Basin Repairs (2019)48,0005320510147,000Sanitary Sewer LS Maint (LS #22)47,0005320530150,000Annual Catch Basin Repairs (2020)50,00053215001Water Treatment Plant GAC Replacement (WTP4)74,00074,00053215100Sanitary Sewer LS Maint (LS #15)26,00026,00053215301Annual Catch Basin Repairs (2021)52,00052,00053225002Water Treatment Plant GAC Replacement (WTP1)75,00075,00053225301Annual Catch Basin Repairs (2022)54,00054,00053235001Water Treatment Plant GAC Replacement (WTP4)77,00077,00053235301Annual Catch Basin Repairs (2023)56,00056,00053245001Water Well Rehab (SLP10)38,00038,00053245002Water Well Rehab (SLP4)38,00038,00053245301Annual Catch Basin Repairs (2024)58,00058,00053255001Water Well Rehab (SLP12)54,00054,00053255002Water Treatment Plant GAC Replacement (WTP4)80,00080,00053255301Annual Catch Basin Repairs (2025)60,00060,000E - XX011,644,850 1,416,5101,557,569 2,145,735Annual Equipment Replacement Program15,815,8281,867,3061,152,685 2,156,2681,163,649 1,081,0411,630,21543,499,82815,195,850 3,543,510 3,711,806 3,103,569 3,617,735Operations & Recreation Total2,563,685 3,365,268 3,021,215 2,923,149 2,454,041Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 27 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 20251,942,500169,500 175,000 180,500 186,000 191,500PW Operations Budget197,000 202,500 208,000 213,500 219,0001,533,8311,274,395 45,000 81,436 60,000 47,000Sanitary Sewer Utility26,000100,83164,395 36,436Solid Waste Utility691,831117,395 66,000 105,436 73,000 50,000Stormwater Utility52,000 54,000 56,000 58,000 60,0001,602,830751,394 151,000 88,436 176,000Water Utility74,000 75,000 77,000 76,000 134,00038,891,4889,650,016 3,647,676 3,815,972 3,207,735 3,721,901Operations & Recreation Total2,667,851 3,469,434 3,125,381 3,027,315 2,558,207Police68,40010,700 10,700 26,200 5,200 5,200Capital Replacement Fund5,200 5,200145,00070,000E-911 Funds75,000213,40010,700 10,700 26,200 75,200 5,200Police Total5,200 5,20075,000PD - 110,700 10,7005,200 5,200Laser/Radar and Message Board68,40026,2005,200 5,200PD - 270,000911 Server Replacement145,00075,000213,40010,700 10,700 26,200 75,200 5,200Police Total5,200 5,20075,000Technology1312500115,00025,000IT: Security Audit, PCI Re-Assessment / Training65,00025,00013125002IT: Server Farm / UPS Enhancements35,00035,0001313500160,000 60,00060,000 60,000IT:LOGIS Hosted / Managed Services / DR / BC600,00060,00060,000 60,00060,000 60,00060,00013135003OR / Utilities: SCADA Solution20,00010,000 10,0001313500420,000OR: AVL / GPS40,00020,000131450026,000Assessing: Wireless Equipment for Field Work6,00013145010Police: New CAD/RMS/Mobile Suite550,000550,0001314501130,00030,000OR: Banquet Rm Multiple Monitor / Projector90,00030,0001314501210,000OR: Rec Center Gallery / Prog Office Monitors20,00010,0001315500150,000IT: Fiber Conduit - West End Fr. Rd, Gamble, Utica50,00013155002200,000 200,000200,000 200,000IR: Fiber - Sidewalks / Streets / Citywide2,000,000200,000200,000 200,000200,000 200,000200,000131550045,000IT: Public Kiosks (City Hall, other sites)5,000Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 28 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 20251315500510,000 10,00010,000 10,000Admin Serv: Agenda Management Software/Hardware90,00010,00010,000 10,00010,00010,00013155006215,000 15,00015,000 15,000Admin Serv:Agenda Doc Mgmt System/Microfilm Conver350,00015,00015,000 15,00015,000 15,00015,0001315500717,500 17,50017,500 17,500IR: MyStLouisPark CRM175,00017,50017,500 17,50017,500 17,50017,50013155008100,000IR: City Hall Fl 2/3 Cabling/Chambers AV Upgrade100,0001315500920,000IR: Portable Web Cams40,00020,0001315501010,000Insp: Scanner20,00010,000131550123,00012,000Insp / OR (2016): Field iPads15,0001315501320,000IR: GIS Public / Application Server20,000131550142,000 2,0002,000 2,000Admin Serv / Utilities: Infinity BI Service20,0002,0002,000 2,0002,000 2,0002,00013155016Eng: Survey GPS15,00015,00013155017Police: ZuercherTech FBR Tablet Add-On Module39,00013,000 13,000 13,0001315502010,000 10,00010,000 10,000Police: ZuercherTech Crime Analysis Add-On Module100,00010,00010,000 10,00010,000 10,00010,00013165001OR: RecTrac / WebTrac Replacement55,00055,0001316500285,000IR: Study - Park Nicollet Fiber85,00013165003135,000OR: Parks Facilities Fiber135,00013165004100,000IR: New City Website Platform100,0001316500615,000OR: Aquila Park Building Fiber15,0001316500716,000 4,0004,000 4,000Admin Serv: HR Time Management System52,0004,0004,000 4,0004,000 4,0004,00013165008100,000Fire: Zuercher Integration of Fatpot Upgrade100,0001316500960,000 58,00018,000 18,000Insp: Electronic Plans Review Software262,00018,00018,000 18,00018,000 18,00018,0001316501052,000O.R.Tech. (Fiber, Wi-fi, network Equipment, Etc.)52,0001317500230,000OR: Rec Banquet Rm Smartboard/Video Conferencing60,00030,00013175003125,000Fire: Station Alerting Upgrade125,00013185001200,000Admin Serv: Financial / HR/Payroll App Replacement200,00013185002Fire: Zuercher Mobile Solution150,000150,00013185003Fire: Additional Station Cameras100,00050,00050,00013195001203,000Admin Serv: Utility Billing App Replacement203,0001320500150,000Fire: VHF Paging Upgrade50,00013215001OR: MSC Smartboard15,00015,00013995001200,000 200,000200,000 200,000IT: On-going Software Licenses, Mtce, 2,000,000200,000200,000 200,000200,000 200,000200,000Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 29 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 2025Development1399500265,000 65,00065,000 65,000IT: On-going Network Adds & Replacement650,00065,00065,000 65,00065,000 65,00065,00013995003150,000 150,000150,000 150,000IT: On-going Hardware/Telephone Adds & Replacement1,500,000150,000150,000 150,000150,000 150,000150,00013995004250,000 100,000100,000Police: 800 MHz Mobile Police Radios550,000100,00013995006100,000125,000Police: Mobile Replacements475,000125,000125,0001399500775,000Fire / Police: Dispatch Voice Recorders155,00080,0001399500915,000 15,00015,000 15,000IR / Communications: Reverse 911 - ParkAlert150,00015,00015,000 15,00015,000 15,00015,00013995010Eng: Engineering Total Station25,00025,00013995011102,000 46,99846,998 55,001OR: Asset Mgmt Software573,00546,998110,004 55,00255,00255,00213995012Fire: Fire Department Mobiles Replacement30,00010,000 10,000 10,0001399501310,00015,000Fire: EOC Computer / Phone Equipment Replacement55,00015,00015,00013995014Admin Serv: Council Tablets55,00015,000 20,000 20,00013995015200,000 200,000200,000 200,000IT: Tablet / Smartphone Hardware and Services2,000,000200,000200,000 200,000200,000 200,000200,0001399501627,000Facilities: City Hall Cameras27,0001399501716,000 16,00016,000 16,000Admin Serv - Insight Budgeting Annual Maintenance160,00016,00016,000 16,00016,000 16,00016,0001399501955,000OR: Nature Center Surveillance Cameras55,0001399502025,000 25,00025,000 25,000IT: Network Switches225,00025,00025,000 25,00025,00025,00013995021Police: Jail Cameras46,00023,000 23,00013995022Police: Exterior Cameras24,00012,000 12,00013995023Police: Booking and Intox Room Cameras (2)13,0006,500 6,50013995024Police: Dispatch Camera Viewing Workstations110,00055,000 55,0001399502535,000OR: Rec Center / Outdoor Rink Cameras160,00045,000 35,000 45,0001399502616,000 16,00016,000 16,000IT: Surveillance Camera Maintenance160,00016,00016,000 16,00016,000 16,00016,0001399502710,000OR: Point of Sale Equipment Replacements20,00010,000139950297,5007,500IT: Plotter Replacements37,5007,5007,5007,50013995030125,000OR: Rec Center PA / Sound125,0001399503145,000OR: MSC Cameras90,00045,00013995035100,000IT: Telephone Handset / Handless Upgrades200,000100,0001399503610,000Eng: Large Scanner / Plotter / Copier20,00010,000Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 30 Total2016 2017 2018 2019 2020Department2021 2022 2023 2024 202510,376,5021,355,166 1,099,666 827,166 1,175,666 1,223,834Capital Replacement Fund905,668 969,834 832,334 1,029,834 957,334519,31637,391 111,325 36,325 36,325 36,325E-911 Funds36,325 116,325 36,325 36,325 36,325235,000235,000EDA Development Fund1,250,000100,000 183,334 183,333 183,333 100,000G.O. Bonds100,000 100,000 100,000 100,000 100,000362,000237,000 45,000Park Improvement Fund35,00045,0003,026,317713,385 275,000 450,432 256,500 182,000Police & Fire Pension33,000 150,000 106,500 589,500 270,000227,67216,333 16,333 16,333 31,333 19,001Sanitary Sewer Utility42,335 19,001 19,001 29,001 19,00120,00010,000Solid Waste Utility10,00036,670667 667 667 10,667 667Stormwater Utility5,667 667 667 15,667 667900,000100,000 100,000 100,000 100,000Unfunded100,000 100,000 100,000 100,000 100,000242,66116,332 16,332 26,332 26,332 18,999Water Utility42,334 19,000 29,000 29,000 19,00017,196,1382,711,274 1,802,657 1,685,588 1,830,156 1,680,826Technology Total1,300,329 1,474,827 1,268,827 1,939,327 1,502,32713995037Fire: Stations Media Package100,000100,000139950398,000Admin Serv: UB Meter Reading Handhelds (if no AMR)8,000139950406,500Police: Interview Room Cameras13,0006,5001399504110,00010,000IT: Wireless Hotspots50,00010,00010,00010,0001399504222,391 21,32521,325 21,325Police: Zuercher CAD Module Annual Fees214,31621,32521,325 21,32521,325 21,32521,3251399504340,000100,000Police: Comm Van Upgrades / EOC Media Package260,000120,00013995050343,385Fire: 800 MHz Mobile Fire Radios414,31770,9321399505183,33483,333SWLRT: Stations Technology250,00083,3336199000122,000Police-LPR replacement22,00017,246,1382,766,276 1,802,657 1,735,588 1,830,156 1,680,826Technology Total1,300,329 1,474,827 1,268,827 1,939,327 1,447,32528,785,455 19,493,281 23,428,220 30,676,090 19,049,457Grand Total197,944,91817,102,453 12,989,045 13,006,075 22,101,726 11,313,116Monday, December 14, 2015City Council Meeting of December 21, 2015 (Item No. 8a) Title: 2016 Budget, Final Property Tax Levies (City & HRA) and 2016 – 2025 CIPPage 31 Meeting: City Council Meeting Date: December 21, 2015 Action Agenda Item: 8b EXECUTIVE SUMMARY TITLE: Zero Waste Packaging Ordinance (Second Reading) RECOMMENDED ACTION: Motion to approve second reading of the Zero Waste Packaging Ordinance and authorize publication. POLICY CONSIDERATION: Is the proposed ordinance consistent with the Councils Strategic Priority of being a leader in environmental stewardship and consciousness? SUMMARY: On December 7, 2015 the first reading and public hearing for the Zero Waste Packaging were held. Testimony was received from both industry stakeholders and the public. Since that time the attached correspondence has been received from a number of organizations representing the business community requesting certain amendments to the proposed ordinance. The requested amendments relate to reinstating previous language regarding economic hardship and to reconsider adding polystyrene (foam and rigid) to the list of recyclable products. NEXT STEPS: Assuming the second reading of the ordinance is approved the following steps will be taken: 1. Develop List of Recyclable/Compostable Products & Exemptions ...... Jan. to April 2016 2. Develop Schedule of Education & Outreach Activities ..................................... Jan. 2016 3. Conduct Education & Outreach Activities ............................................ Feb. to Dec. 2016 4. Ordinance goes into effect .............................................................................. Jan. 1, 2017 FINANCIAL OR BUDGET CONSIDERATION: The implementation of the proposed ordinance will impact the 2016 solid waste budget primarily from a staffing perspective. VISION CONSIDERATION: St. Louis Park is committed to being a leader in environmental stewardship. We will increase environmental consciousness and responsibility in all areas of city business. SUPPORTING DOCUMENTS: Discussion Letter from Business Community Ordinance Prepared by: Kala Fisher, Solid Waste Program Coordinator Reviewed by: Scott Merkley, Public Works Services Manager Mark Hanson, Public Works Superintendent Cindy Walsh, Director of Operations and Recreation Approved by: Tom Harmening, City Manager City Council Meeting of December 21, 2015 (Item No. 8b) Page 2 Title: Zero Waste Packaging Ordinance (Second Reading) DISCUSSION BACKGROUND: After undertaking several months of public process, a draft Zero Waste Packaging Ordinance was presented to Council on September 8, 2015. The draft ordinance was used as part of an education and outreach campaign to allow stakeholders the opportunity to comment on the draft ordinance in writing and during a public listening session on October 12, 2015. Comments from stakeholders were considered by staff and revisions to the draft ordinance were made. The second version of the draft Zero Waste Packaging Ordinance was presented to Council on November 2, 2105. Council requested additional changes including language to further clarify the ordinance intent, definitions, requirements, violations and enforcement, and exemptions. Staff updated the draft ordinance to reflect these changes and presented it to Council in a written report on November 23, 2015. Council directed staff to move forward with a Public Hearing and 1st reading on December 7, 2015. Council heard testimony from residents and industry stakeholders during the Public Hearing. Since that time the attached correspondence has been received from a number of organizations representing the business community requesting certain amendments to the proposed ordinance. The requested amendments relate to reinstating previous language regarding economic hardship and to reconsider adding polystyrene (foam and rigid) to the list of recyclable products. PRESENT CONSIDERATIONS: The proposed Zero Waste Packaging Ordinance (Attachment 1) was presented and approved at the Public Hearing and 1st reading on December 7, 2015. This is the 2nd reading of the proposed ordinance. ORDINANCE GOAL: To increase traditional recycling and organics recycling while reducing waste and environmental impact from non-returnable, non-reusable, non-recyclable, and non- compostable food and beverage packaging. REQUIREMENTS: The ordinance has two main requirements:  Food establishments are required to use “Zero Waste Packaging” for food prepared for immediate consumption. Packaging used by food establishments for food and beverage eaten on-site or taken to-go must be reusable, returnable, recyclable, or compostable.  Food establishments are required to provide onsite recycling and/or organics recycling of zero waste packaging, for customers dining in. AFFECTED BUSINESSES: The ordinance applies to all food establishments licensed by Hennepin County that prepare food for immediate consumption. IMPLEMENTATION DATE: Ordinance effective date would be January 1, 2017. NEXT STEPS: 1. Develop List of Recyclable/Compostable Products & Exemptions ...... Jan. to April 2016 2. Develop Schedule of Education & Outreach Activities ..................................... Jan. 2016 3. Conduct Education & Outreach Activities ........................................... Feb. to Dec. 2016 4. Ordinance goes into effect .............................................................................. Jan. 1, 2017 December 16, 2015 Mayor Jeff Jacobs Members of City Council City of St. Louis Park 5005 Minnetonka Blvd. St. Louis Park, MN 55416 Dear Mayor Jacobs and Council Members: We want to express our concerns and offer amendments to the Zero Waste Packaging ordinance. St. Louis Park’s ordinance will certainly present a challenge for many of our members to find a cost- effective product that will perform as well as foam and rigid polystyrene, rigid polystyrene lids and PE lined cups. You heard multiple times in testimony, the cost to businesses to comply with the ordinance will be anywhere from 30-400% higher; dramatically affecting the competitiveness of St. Louis Park businesses and impacting consumers. To that end, we respectfully ask that you reinstate language in the ordinance that takes economic hardship into account. We favor the economic hardship exemption language offered by Mike Levy and John Easter of the American Chemistry Council in their December 2, 2015 comment letter to you. The Public Works Division will make available published wholesale price lists for foodservice packaging items, and if the cost of an item is more than 10% higher than a foodservice packaging item as defined by the zero waste packaging definitions, the Division will grant an exemption for that particular item. We also request that you reconsider adding polystyrene (foam and rigid) to the list of recyclable products. Again, the language (see below) offered by the American Chemistry Council is favored. This allows for the recycling of the material as soon as the local material recovery center can receive and process it. Recyclable packaging: Packaging that is separable from solid waste during collection for the purpose of recycling including, but not limited to, glass bottles, aluminum cans and plastic food and beverage packaging. Recyclable packaging must be accepted by the local material recovery facilities receiving City Council Meeting of December 21, 2015 (Item No. 8b) Title: Zero Waste Packaging Ordinance (Second Reading)Page 3 and processing the materials. For both existing and new recycling markets, the determination will be made by Public Works Division by rule promulgated pursuant to section 12.205. Adopting these amendments will reinforce your commitment to St. Louis Park businesses to be competitive and successful in the short term, while being a partner in growing recycling and assisting the city as it builds an infrastructure to meet its longer term zero waste packaging goals. Sincerely, Deb McMillan, Director of Government Affairs Bruce Nustad, President TwinWest Chamber of Commerce Minnesota Retailers Association Jamie Pfuhl, President Kevin Thoma, Executive Director Minnesota Grocers Association Minnesota Petroleum Marketers Association Lance Klatt, Executive Director Dan McElroy, President/CEO Minnesota Service Station and Minnesota Restaurant Association and Convenience Stores Association Minnesota Lodging Association Mike Levy, Senior Director AnnMarie Treglia, Global Manager Packaging and Government Affairs Government Affairs & the Environment American Chemistry Council Dart Container Corporation Tim Wilkin, President Minnesota Beverage Association City Council Meeting of December 21, 2015 (Item No. 8b) Title: Zero Waste Packaging Ordinance (Second Reading)Page 4 D R A F T ORDINANCE NO. ____ - 15 ORDINANCE TO INCREASE TRADITIONAL RECYCLING AND ORGANICS RECYCLING OF FOOD AND BEVERAGE PACKAGING AND TO-GO CONTAINERS THE CITY OF ST. LOUIS PARK DOES ORDAIN: CHAPTER 12 – Environment and Public Health Division VI. ZERO WASTE PACKAGING 12-201. - Legislative purpose. The city council (council) adopted the strategic direction in March 2007 stating that the city is committed to being a leader in environmental stewardship and will increase environmental consciousness and responsibility in all areas of city business. As such, the council finds that discarded packaging from foods and beverages prepared for immediate consumption constitutes a portion of the waste stream in St. Louis Park that could be diverted for reuse, recycling, or organics recycling. Regulation of food and beverage packaging, therefore, is a necessary part of any effort to encourage a recyclable and compostable waste stream, thereby reducing the disposal of solid waste and the economic and environmental costs of waste management for the citizens of St. Louis Park and others working or doing business in St. Louis Park. The council also finds that the two (2) main processes used to dispose of discarded nonreusable, nonreturnable, nonrecyclable and noncompostable food and beverage packaging are land filling and incineration, both of which should be minimized for environmental reasons. The council therefore finds that the minimization of nonreusable, nonreturnable, nonrecyclable and noncompostable food and beverage packaging originating at retail food establishments and at events providing food and/or beverages within the city of St. Louis Park is necessary and desirable in order to minimize the city's waste stream and maximize recycling and organics recycling, so as to reduce the volume of landfilled waste, to minimize toxic by-products of incineration, and to make our city and neighboring communities more environmentally sound places to live. 12.202. - Definitions. As used in this chapter, the following terms and phrases shall have the meanings as defined in this section: City Council Meeting of December 21, 2015 (Item No. 8b) Title: Zero Waste Packaging Ordinance (Second Reading)Page 5 (a) “Distributor” shall mean a business that distributes food and beverages but who conduct no retail food or beverage transactions. (b) “Food establishment”, as used in this chapter, shall mean a "food establishment" as defined by Chapter 3.3.1 Hennepin County Code of Ordinances. (c) “Mobile use-food establishment”, as used in this chapter, shall mean “mobile use-food” as defined in Chapter 36-142(g)(5) of the City Code of Ordinances, as a vehicle or cart used to prepare and serve food and/or beverages in individual portions in a ready-to- consume state. Mobile use-food does not include the sale of groceries or vegetables and fruits not prepared for immediate consumption at the vehicle. (d) “Packaging” shall mean and include food or beverage cans, bottles or containers used to package food and beverage products for distribution including glasses, cups, plates, serving trays, and to-go containers. The following exclusions apply: foods pre-packaged by the manufacturer, producer or distributor; plastic knives, forks and spoons sold or intended for use as utensils; and plastic films less than ten (10) mils in thickness. (e) “Violation” shall mean any time a food establishment is found by the city to be non- compliant with one or more section(s) of this chapter. (f) “Zero waste packaging” shall mean and include any of the following: (1) “Reusable and returnable packaging”: Food or beverage containers or packages, such as, but not limited to, water bottles, growlers, milk containers and bulk product packaging that are capable of being refilled at a retail location or returned to the distributor for reuse at least once as a container for the same food or beverage; (2) “Recyclable packaging”: Packaging that is separable from solid waste during collection for the purpose of recycling including, but not limited to, glass bottles, aluminum cans and plastic food and beverage packaging. Recyclable packaging must be accepted by the local material recovery facilities receiving and processing the materials and have existing robust recycling markets as determined by the Public Works Division by rule promulgated pursuant to section 12.205. (3) “Compostable packaging”: Packaging that is separable from solid waste during collection for the purpose of composting. Compostable packaging must be made of unlined paper (unless lining is certified compostable), certified compostable plastic that meet ASTM D6400 or ASTM D6868 or other material accepted by the commercial compost or anaerobic digestion facility receiving and processing the materials. 12.203. - Prohibitions and duties. (a) No person owning, operating or conducting a food establishment or any person or organization providing free food or beverage products within the city of St. Louis Park pursuant to a Hennepin County permit or license, or in a manner which would require a permit or license, shall do or allow to be done any of the following within the city: City Council Meeting of December 21, 2015 (Item No. 8b) Title: Zero Waste Packaging Ordinance (Second Reading)Page 6 (1) Sell or convey at retail or possess with the intent to sell or convey at retail any food or beverage intended for immediate consumption contained, at any time at or before the time or point of sale, in packaging which is not zero waste packaging. The presence on the premises of the food establishment of packaging which is not zero waste packaging shall constitute a rebuttable presumption of intent to sell or convey at retail, or to provide to retail customers packaging which is not zero waste packaging; provided, however, that this subparagraph shall not apply to manufacturers, brokers or warehouse operators, who conduct or transact no retail food or beverage business. (b) Packaging used to contain food or beverages intended for immediate consumption shall be considered zero waste packaging only when the food establishment provides consumers with an on-site opportunity to recycle and/or appropriately manage compostable packaging and compostable plastics and utilizes a qualified recycling and/or organics management system. (1) A qualified recycling system shall have the following elements: a. A clear and verifiable process for separating recyclable packaging from discarded solid waste; and b. Collection and delivery of recyclable packaging to a recycling facility for processing in the same or at least similar manner as recyclable packaging collected in a city approved recycling program. (2) A qualified organics recycling system shall have the following elements: a. A clear and verifiable process for separating organic materials from discarded solid waste; and b. Collection and delivery of organic materials to an organics composting or anaerobic digestion facility in the same manner or at least similar manner as organic materials collected in a municipally approved organics management program. (3) A food establishment that does not have dine-in seating for consumers, except a mobile use-food establishment, is exempt from the requirement to provide consumers with an on-site opportunity to recycle and/or manage compostable packaging/compostable plastics as defined in Sec 12-203(b). 12.204. – Violations and Enforcement. (a) When a violation of this chapter has occurred, the food establishment shall be subject to the penalties set forth below. (b) A violation of this chapter is a misdemeanor. (c) Violations of this chapter shall be punishable as an administrative offense pursuant to City Code Ordinance 2420-12, Section 1-14 Administrative Penalties, as follows: City Council Meeting of December 21, 2015 (Item No. 8b) Title: Zero Waste Packaging Ordinance (Second Reading)Page 7 (1) A warning notice in writing for the first violation; (2) A fine of $100 for the second violation; (3) Repeat subsequent violations within 24 months, a fine double the amount of the fine imposed for the previous violation, up to a maximum of $2,000. For example if there were four occurrences of a violation that carried a $100 fine: first is $0 (warning); second is $100, third is $200, forth is $400). (d) At the time a violation occurs, the food establishment will be given 14 calendar days to take corrective action before a subsequent fine is issued. (e) The administrative offenses provided for in this chapter shall be in addition to any other legal or equitable remedy available to the city for city code violations. 12.205. - Rules and regulations. The Public Works Division may, upon notice and hearing, promulgate such rules and regulations as may be necessary to carry out the purposes of this chapter and protect the health of the public, including the development of list of recyclable and compostable packaging that meets definitions under section 12.202 and development of exemptions under section 12.206 for packaging for which there is no reasonable commercially available alternative. In promulgating such rules, the division shall consider the legislative purposes provided in section 12.201 of this chapter and shall consult with the operators of affected food establishments, local material recovery facilities and local commercial composting facilities. The Public Works Division rules and regulations shall be approved by council annually. 12.206. - Exemptions. Notwithstanding any other provision to the contrary, this chapter shall not apply to: (a) Any packaging which is not zero waste packaging, but for which there is no commercially available alternative as determined by the Public Works Division by rule promulgated pursuant to section 12.205. In determining whether there are commercially available alternatives, the Public Works Division will consider whether there is availability of zero waste packaging for affected products. Every rule creating an exemption under this paragraph will be reviewed annually by the Public Works Division to determine whether current conditions continue to warrant the exemption. 12.207. - Severability. If any part or provision of this chapter or the application thereof to any person, entity, or circumstances shall be adjudged unconstitutional or invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision or application which is directly involved in the controversy in which such judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this chapter or the application thereof to other persons, entities, or circumstances. City Council Meeting of December 21, 2015 (Item No. 8b) Title: Zero Waste Packaging Ordinance (Second Reading)Page 8 12.208. - Effective date. This ordinance shall take effect January 1, 2017. Secs. 12-209--12-250. Reserved. Reviewed for Administration Adopted by the City Council _____________ City Manager Mayor Attest: Approved as to Form and Execution: City Clerk City Attorney City Council Meeting of December 21, 2015 (Item No. 8b) Title: Zero Waste Packaging Ordinance (Second Reading)Page 9 Meeting: City Council Meeting Date: December 21, 2015 Action Agenda Item: 8c EXECUTIVE SUMMARY TITLE: 2016 Employee Compensation RECOMMENDED ACTION: Motion to Adopt Resolution confirming a 2.5% general increase for non-union employees effective 1/1/16; approving the City Manager’s salary for 2016, continuing participation in the Volunteer Firefighter Benefit Program; and increasing performance program pay by 2.5% for Paid-On-Call Firefighters for 2016. POLICY CONSIDERATION: Does Council wish to confirm the recommended 2016 employee compensation as outlined in this report? SUMMARY: This report details staff’s recommendation for setting non-union employee compensation for 2016. Recommendation for 2016 Non-Union Employee Compensation:  Approve 2.5% standard adjustment to compensation plan for non-union employees, allowing for regular progression through pay ranges.  Adjust pay range for City Manager to allow movement through the range consistent with non- union. Set formula in compliance with salary cap. Pay increase would become effective upon Council approval of the City Manager’s performance evaluation and include retro-pay back to January 1, 2016.  Approve continuation in the Volunteer Firefighter Benefit Program.  Approve 2.5% increase to Paid-On-Call Firefighter Performance Program. FINANCIAL OR BUDGET CONSIDERATION: The amount recommended has been included in the 2016 budget. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Discussion Resolution Prepared by: Caitlin Greene, HR Assistant Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City Council Meeting of December 21, 2015 (Item No. 8c) Page 2 Title: 2016 Employee Compensation DISCUSSION Non-Union Employee Compensation – 2.5% General Increase Effective 1/1/16 Our compensation plan, which was adopted in 1997, allows the City Manager to approve the standard adjustment based on information such as market value data, the CPI, and the general financial condition of the City. Our positions are reviewed on a regular basis and compared to the market, which includes metro area cities (suburbs) with populations over 25,000 but less than 90,000, as required by our compensation plan approved by Council. After review of the market, it is recommended that pay maximums for St. Louis Park would remain competitive if increased by 2.5%. The increase for non-union employees will be applied in accordance with our compensation plan. In our plan, after successful completion of probation (typically six months), a position receives up to double the standard increase to progress through the pay range until they reach the pay line (maximum). Positions at the maximum will receive the standard adjustment of 2.5%. Salary Cap and City Manager Salary The contract for the City Manager states that base salary and benefits must be set when salaries are established for other non-union employees. Compensation must comply with the state mandated salary cap.  2015 salary range for the City Manager was set at $155,519 - $182,963.  Salary cap in 2015 was $165,003.  2015 annual salary for City Manager is $165,003 and additional paid time off (PTO) of 204.55 hours (at $79.328/hr. = $16,227) for a total of $181,230, not including car allowance. It is recommended that the pay range for the position of City Manager move consistent with other positions in the City and adjusted by 2.5%. Because the City Manager’s compensation is not at the maximum of the 2016 range, the City Manager is eligible for up to double the standard increase to the range maximum of $187,537, in accordance with the compensation plan, consistent with other non-union employees. A 3.48% increase would be total compensation of $187,537.  2016 salary range set for the City Manager recommended at $159,406 - $187,537 (2.5% increase in the pay range, consistent with other non-union staff).  Salary cap for 2016 is set by state statute at $165,334 (0.2% increase).  It is recommended that effective January 1, 2016, Council approves an annual salary of $165,334 annually ($79.488 hourly) for the City Manager, not including car allowance, in accordance with the salary cap. Car allowance of $600 per month will be subject to the PTO program. In addition, Council approves 279.33 hours of PTO for the City Manager in 2016 (279.33 X $79.488 = $22,203).  The City Manager’s salary will remain at 2015 levels until approval of the annual performance evaluation by Council. Upon approval of the evaluation, the 2016 salary will be approved and the City Manager will receive retro-pay to January 1, 2016. Paid Time Off (PTO Program) The PTO program is approved by Council and part of the City’s Personnel Manual. Section 9.13 Paid Time Off (PTO) Program states: Effective 01/01/02, exempt employees, including the City Manager, who reach the salary limit requirements of M.S. 43A.17, Subd. 9, shall receive City Council Meeting of December 21, 2015 (Item No. 8c) Page 3 Title: 2016 Employee Compensation equivalent hours above the limit in paid leave (PTO). Amount of paid leave (PTO) is determined by the City Council. Paid leave (PTO) is typically accrued on a per pay period basis, although the Council may issue paid leave (PTO) as a lump sum amount of time. Paid leave (PTO) may be used as earned, maintained in a paid leave (PTO) bank or cashed out upon separation of employment. Paid leave (PTO) is separate and not part of the flex leave program (Resolution 02- 127). Each July 31, all hours in the PTO balance must transfer to a Health Care Savings Plan account established for the employee in accordance with plan requirements (Resolution 05-104). Funds in the Health Care Savings Plan can only be used for reimbursement of eligible medical expenses after separation of employment. Volunteer Firefighter Benefit Program Our paid-on-call firefighters receive a life insurance benefit through the Volunteer Firefighters’ Benefit Association of Minnesota. Our personnel policy requires Council approval for conditions of employment relating to performance bonuses or insurance. This program is very affordable and covers our paid-on-call firefighters. It covers life insurance up to $20,000 and also provides some disability coverage. This program is a typical benefit offered to other paid-on-call firefighters in municipalities in the metro area. Since paid-on-call firefighters are not eligible for the benefits of other employees, it is important that we provide some type of life insurance coverage for this group. We recommend Council approves continued participation in this program consistent with Resolution 05-150. Paid-on-Call Firefighter Performance Program – 2.5% Increase Our Paid-on-Call Firefighter Performance Program was established in 1996. The Performance Program was designed for our paid-on-call firefighters to be competitive with our volunteer neighbors, and alleviate the need of a Fire Department Relief Association. The Performance Program is reviewed annually. The Fire Chief has recommended a 2.5% increase to this program, effective January 1, 2016. (Payment is based on performance as approved by the Fire Chief and is typically made at year end.) General comment: Copies of the Compensation Plan are available from the City Clerk. City Council Meeting of December 21, 2015 (Item No. 8c) Page 4 Title: 2016 Employee Compensation RESOLUTION NO. 15-____ RESOLUTION CONFIRMING 2016 COMPENSATION FOR NON-UNION EMPLOYEES; SETTING THE CITY MANAGER’S SALARY; CONTINUING PARTICIPATION IN THE VOLUNTEER FIREFIGHTER BENEFIT PROGRAM; AND CONTINUING PERFORMANCE PROGRAM PAY FOR PAID-ON-CALL FIREFIGHTERS WHEREAS, the City Council established and approved, by Resolution, the Position Classification and Compensation Plan for the City of St. Louis Park, and Section VIII-C of such Plan directs the City Manager to approve the standard adjustment to the Plan; and WHEREAS, the City Council wishes to adopt policies for City employees and has conferred upon the City Manager the power to establish and administer additional administrative policies and rules as may be appropriate for the employment practices of the City; and NOW, THEREFORE BE IT RESOLVED that the City Council of the City of St. Louis Park: A. Confirms the City Manager’s decision to implement a standard adjustment of 2.5%, effective January 1, 2016 for non-union employees in accordance with the Position Classification and Compensation Plan. B. Confirms a salary of $165,334 for the City Manager, not including car allowance. Salary application must comply with the salary limitations set by state statute, therefore PTO applies to the City Manager’s car allowance of $600 per month. Council also approves an additional 279.33 hours of PTO for the City Manager in 2016. The City Manager’s salary will remain at 2015 levels until Council approves an annual performance evaluation, and at that time the 2016 salary stated here is approved with retro-pay back to January 1, 2016. C. Approves continuation of participation in the Volunteer Firefighters’ Benefit Association of MN Benefit Program for 2016, consistent with Resolution 05-150. D. Approves continuation of the Paid-on-Call Firefighters Performance Program with a 2.5% increase, effective January 1, 2016. Performance Program: Paid-on-Call Firefighters For 0 – 23 months of service, paid-on-call firefighters are eligible to receive a monthly amount. After 23 months, they are eligible to receive an annual amount. This amount may be pro-rated for actual number of months worked. All amounts after the 23 month timeframe show annual amounts as follows: Years of Service 2016 Annual Up to 23 Months of Service $161 per month 2 $2,099 3 $2,255 4 $2,426 5 $2,580 6 $2,736 7 $2,893 8 $3,063 City Council Meeting of December 21, 2015 (Item No. 8c) Page 5 Title: 2016 Employee Compensation Reviewed for Administration: Adopted by the City Council December 21, 2015 City Manager Mayor Attest: City Clerk 9 $3,221 10 $3,374 11 $3,547 12 $3,716 13 $3,871 14 $4,043 15 $4,197 16 $4,355 17 $4,510 18 $4,680 19 $4,835 20 $4,993 Meeting: City Council Meeting Date: December 21, 2015 Action Agenda Item: 8d EXECUTIVE SUMMARY TITLE: 2016 International Association of Firefighters (IAFF) Local #993 Labor Agreement RECOMMENDED ACTION: Motion to Adopt Resolution approving a Labor Agreement between the City and the IAFF Local #993, establishing terms and conditions of employment for one year, from 1/1/16 – 12/31/16. POLICY CONSIDERATION: Does Council wish to approve the Labor Agreement between the City and the Local #993 Union? SUMMARY: Staff is pleased to bring to Council the details of this contract agreement between the City and Union for 2016. The City and the Local 993 Union had a number of negotiation sessions and have come to agreement on the following changes to the contract:  Duration of 1 year (1/1/16 – 12/31/16).  Wage increase of 2.5% for 2016.  Employer contribution same as other groups for 2016.  Paid Parenting Leave Program added to contract as Article XVII. This was agreed upon in a memorandum of understanding with the Union midway through the last contract and is now added as follows: Employees are eligible for Paid Parenting Leave program administered on the same basis and subject to the same requirements as the general non-union employees. The City Manager has the final approval of administration of this program. Due to the nature of this policy, it is not subject to grievance, or arbitration and this policy may be amended from time to time. (For calculation purposes, conversion is used and leave is based on conversion to day schedule with a 40 hour work week.) Staff recommends approval. The proposed contract is on file with the City Clerk. More detail is available upon request. FINANCIAL OR BUDGET CONSIDERATION: The amount recommended has been included in the 2016 budget. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Resolution Prepared by: Caitlin Greene, HR Assistant Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City Council Meeting of December 21, 2015 (Item No. 8d) Page 2 Title: 2016 International Association of Firefighters (IAFF) Local #993 Labor Agreement RESOLUTION NO. 15-____ RESOLUTION APPROVING THE LABOR AGREEMENT BETWEEN THE CITY OF ST. LOUIS PARK AND INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL #993 JANUARY 1, 2016 – DECEMBER 31, 2016 WHEREAS, the City and the Union have reached a negotiated settlement covering the terms and conditions of a Labor Agreement as permitted by the State of Minnesota Public Employees Labor Relations Act, and WHEREAS, the City Council may enter into such agreements as authorized by its Charter; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis Park that the Mayor and City Manager are authorized to execute a Collective Bargaining Agreement, City Contract #______ between the City of St. Louis Park and International Association of Firefighters (IAFF), Local #993, effective January 1, 2016 – December 31, 2016. Reviewed for Administration: Adopted by the City Council December 21, 2015 City Manager Mayor Attest: City Clerk Meeting: City Council Meeting Date: December 21, 2015 Action Agenda Item: 8e EXECUTIVE SUMMARY TITLE: 2016 - 2017 International Union of Operating Engineers (IUOE) Local #49 (Maintenance) Labor Agreement RECOMMENDED ACTION: Motion to Adopt Resolution approving a Labor Agreement between the City and Local 49 Union, establishing terms and conditions of employment for two years, from 1/1/16 – 12/31/17. POLICY CONSIDERATION: Does Council wish to approve the Labor Agreement between the City and the IUOE Local 49 Union? SUMMARY: After a number of lengthy negotiation sessions, staff is pleased to bring the summary of changes to this contract for 2016-2017:  Duration of 2 years (1/1/16 – 12/31/17).  Wage increase 2.5% for 2016 (same as non-union and Firefighters), 2.75% for 2017.  Effective 1/1/16 and 1/1/17, the Employer contribution shall be set at the same rate as provided to other employees and eligible to participate in the Wellness Program.  New: Effective January 1, 2016, Utilities Division employees are eligible for an additional hourly rate of pay for those who obtain and maintain certification as follows:  MN Department of Health Water Supply Systems Operator Certification CLASS D: $.15, CLASS C: $.30, CLASS B: $.50, CLASS A: $.75  Minnesota Pollution Control Agency Collection System Certification CLASS SD: $.15, CLASS SC: $.30, CLASS SB: $.50, CLASS SA: $.75  Adjust on-call pay from $50/day in 2015 to $51.25/day effective 1/1/16 and $53/day effective 1/1/17.  Adjust Traffic assignment from $.404/hour in 2015 to $.50/hour effective 1/1/16 and $.58/hour effective 1/1/17.  Change Lead Worker assignment from $1/hour in 2015 to $1.20 for each hour completed in this assignment effective 1/1/16.  Paid Parenting Leave Program was agreed upon midway through the last contract and is now added as a section to the contract.  Change number of days a seasonal/temporary employee can work from 168 to 180 days and change calendar year from January 1 – December 31 to March through November for hiring. The proposed contract is on file with the City Clerk. More detail is available upon request. FINANCIAL OR BUDGET CONSIDERATION: Items are included in the 2016 budget. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Resolution Prepared by: Caitlin Greene, HR Assistant Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City Council Meeting of (Item No. 8e) Page 2 Title: 2016 - 2017 International Union of Operating Engineers (IUOE) Local #49 (Maintenance) Labor Agreement RESOLUTION NO. 15-____ RESOLUTION APPROVING THE LABOR AGREEMENT BETWEEN THE CITY OF ST. LOUIS PARK AND INTERNATIONAL UNION OF OPERATING ENGINEERS (IUOE), LOCAL 49 JANUARY 1, 2016 – DECEMBER 31, 2017 WHEREAS, the City and the Union have reached a negotiated settlement covering the terms and conditions of a Labor Agreement as permitted by the State of Minnesota Public Employees Labor Relations Act, and WHEREAS, the City Council may enter into such agreements as authorized by its Charter; NOW, THEREFORE BE IT RESOLVED by the City Council of the City of St. Louis Park that the Mayor and City Manager are authorized to execute a Collective Bargaining Agreement, City Contract #______ between the City of St. Louis Park and IUOE Local 49, effective January 1, 2016 – December 31, 2017. Reviewed for Administration: Adopted by the City Council December 21, 2015 City Manager Mayor Attest: City Clerk