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HomeMy WebLinkAbout2015/08/24 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA AUGUST 24, 2015 6:30 p.m. SPECIAL CITY COUNCIL MEETING -- Community Room 1. Call to Order 1a. Pledge of Allegiance 2. Resolutions, Ordinances, Motions and Discussion Items 2a. SWLRT Funding Agreements Recommended Action: • Motion to approve an Amendment to the SWLRT Master Funding Agreement (MFA) between the City and Metropolitan Council to provide for the transfer of funds between the agencies. • Motion to approve a Subordinate Funding Agreement (SFA) 3. Adjournment 6:35 p.m. CITY COUNCIL STUDY SESSION – Community Room Discussion Items 1. 6:35 p.m. Future Study Session Agenda Planning – September 8 & September 28, 2015 2. 6:40 p.m. 2016 Budget, CIP and Utility Rates 3. 8:10 p.m. Mayor, City Council and Economic Development Authority Compensation 8:30 p.m. Communications/Updates (Verbal) 8:35 p.m. Adjourn Written Reports 4. Cable TV and Franchise Fee Trends 5. July 2015 Monthly Financial Report 6. 2015 Semi-Annual Housing Programs Activity Report 7. Homes Within Reach: City Funded Revolving Line of Credit to Assist w/ Acquisition and Rehab Costs of Affordable Homeownership Units 8. Comprehensive Plan Amendment for Future SWLRT Joint Development 9. The Shoreham PUD Amendment 10. Westwood Hills Nature Center Master Plan Update 11. Extension of Franchise Agreements with CenterPoint Energy and Xcel Energy 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. Meeting: Special City Council Meeting Date: August 24, 2015 Action Agenda Item: 2a EXECUTIVE SUMMARY TITLE: SWLRT Funding Agreements RECOMMENDED ACTION: • Motion to approve an Amendment to the SWLRT Master Funding Agreement (MFA) between the City and Metropolitan Council to provide for the transfer of funds between the agencies. • Motion to approve a Subordinate Funding Agreement (SFA) between the City and Metropolitan Council for the Louisiana Station Trail Underpass. POLICY CONSIDERATION: Action on these agreements is to formalize the action taken by the resolutions passed by the Council on July 20, 2015 stating the City will contribute funds to the general project and to the Louisiana Station Trail Underpass. SUMMARY: In July the City Council passed two resolutions, one to agree to contribute $2 million to the general SWLRT project and one to fund the Louisiana Station Trail Underpass as a part of the base project (shown on attached drawing). The proposed agreements with the Metropolitan Council include an amendment to our current Master Funding Agreement (MFA), and a new Subordinate Funding Agreement (SFA). These agreements reflect the City’s commitments made in the resolutions to provide funding for the project in general and inclusion of the trail underpass at Louisiana Station specifically. The attached SFA agreement formalizes the city’s commitment for the design and environmental portion of the underpass (up to $78,000). FINANCIAL OR BUDGET CONSIDERATION: Up to $78,000 would be committed by this agreement at this time for design and environmental review by the attached SFA. The remaining $222,000 for the trail underpass would be contributed during construction in 2017-20, and the subject of an additional funding agreement. Additional SFAs will be processed for the general contribution of $2 million, expected in the 2016-20 timeframe. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. ATTACHMENTS: Discussion Master Funding Agreement with Amendments Amendment #1 to Master Funding Agreement Subordinate Funding Agreement for Louisiana Trail Underpass Louisiana Station Trail Underpass Drawing Lynn Avenue Extension Drawing Prepared by: Meg McMonigal, Principal Planner Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager Special City Council Meeting of August 24, 2015 (Item No. 2z) Page 2 Title: SWLRT Funding Agreements DISCUSSION The amendment to the MFA opens the door for the City to contribute funds to the base project and for the Met Council to accept and use those funds. It also states that separate Subordinate Funding Agreements will be required for the actual transfer of funds. Those future agreements would spell out the specifics of any transfers of funds. The amended MFA does state that upon completion of the project, the Council shall refund to the City its proportionate share of local funding for the project subject to administrative and management adjustments. The Subordinate Funding Agreement is specifically for the Louisiana Station trail underpass design and environmental review costs. It does not include funding of actual construction costs. A separate SFA will be prepared for construction costs. This is a similar approach to how our LRCIs are structured; we are only committed to cover design and environmental costs so far. Construction costs will be covered by separate future agreements. The amount of the design and environmental costs for the trail underpass is $78,000. That amount is based on the total estimated cost for the underpass of $600,000 half of which ($300,000) would be SLP’s cost. The City will reimburse the Met Council for the actual design and environmental review costs up to a maximum of $78,000. Potential Future Funding for Additional SWLRT Items Lynn Avenue Extension LRCI The City previously requested inclusion of the Extension of Lynn Ave and construction of a backage road at Beltline Station as a LRCI. Staff has been working with the SPO on the possibility of putting the Lynn Avenue Extension LRCI into the base LRT project (please see attached drawing), thereby benefitting from the FTA funding match of 50% of the cost. The much smaller park and ride lot as shown in the Municipal Consent plans for the Beltline Blvd Station changes the LRCI somewhat and means it would be more costly to construct than previously projected. The access provided on the Municipal Consent plan does not leave particularly good access for future development, which means the LRCI is now more important for providing effective access to the park and ride and the EDA redevelopment property. A solution to both of these problems would be to incorporate the Lynn Avenue Extension LRCI into the Base SWLRT project design. If the Lynn Avenue Extension is part of the base project, much of its cost would be covered by FTA matching funds. Incorporating the Lynn Ave/Backage Road into the SWLRT Base project would keep SLP’s cost essentially the same ($1.6 million) as projected for the original LRCI. Staff has told the SPO that they should assume for now SLP supports inclusion of the Lynn Avenue Extension LRCI in the base SWLRT project. The City will need to take formal action on its commitment at a future meeting, most likely when the City officially approves the Municipal Consent Plans September 21st. Including the LRCI into the base project at this time will solidify the street plans for the area, and set the table to move forward with development in this area. Our work has shown that creating appropriately sized blocks within the area would be much more conducive to preparing the area for transit-oriented development and with more certainty, development could occur sooner. Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 3 Title: SWLRT Funding Agreements Stairways to Regional Trail Hennepin County and Three Rivers Park District along with federal grant funds are providing the local funding for inclusion of the trail grade separations at Beltline, Wooddale and Blake Road. The designs for these grade separations include ramp connections to the Wooddale and Beltline but not stairways. Considering the importance of these crossings to SLP, adding stairs to maximize the grade separations usability seems like a wise investment. Much of the cost of adding the stairs can be covered by the grants and FTA matching funds. There is a funding gap of $100-135,000 for the stairs in SLP’s grade separations. We have directed the SPO to assume for now that SLP would cover this shortfall. Formal action on this commitment will be needed at a future City Council meeting, would also occur on September 21st. Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 4 Title: SWLRT Funding Agreements Reference Numbers: SWLRT Project: 61001 Metropolitan Council: 14I061 City of St. Louis Park: PROJECT: SOUTHWEST LIGHT RAIL TRANSIT PROJECT AGREEMENT NAME: Master Funding Agreement – City of St. Louis Park PARTIES: • Metropolitan Council • City of St. Louis Park, Minnesota This Master Funding Agreement (“Agreement”) is entered into by and between the Metropolitan Council (“Council”), a public corporation and political subdivision of the State of Minnesota, and the City of St. Louis Park (“City”), a Minnesota municipal corporation, herein collectively referred to as the “Parties” and individually as a “Party”. This Agreement pertains to the Council’s proposed Southwest Light Rail Transit (“SWLRT”) Project, referred to hereafter as the “Project”. WHEREAS: 1. The Council, metropolitan area cities, public agencies, and transit funders are engaged in activities to develop the Project, an approximately 16 14.5 mile proposed extension of the METRO Green Line which will operate from downtown Minneapolis through the cities of St. Louis Park, Hopkins, Minnetonka, and Eden Prairie. 2. The Council has received appropriations from the State of Minnesota for the purpose of conducting environmental studies, completing project development, and designing the Project. The Council also expects to receive future appropriations from the State of Minnesota for engineering and construction of the Project. 3. The Council anticipates receiving grants from the Federal Transit Administration (“FTA”) for engineering and construction of the Project under a Full Funding Grant Agreement (“FFGA”) with the FTA. 4. The Council has received a grant from the Counties Transit Improvement Board (“CTIB”) for project development for the Project. The Council also expects to receive future grants from the CTIB for engineering and construction of the Project. 5. The Council is a party to a Cooperative Funding Agreement for project development with the Hennepin County Regional Railroad Authority (“HCRRA”) for the Project. The Council expects to enter into future Cooperative Funding Agreement(s) with HCRRA for engineering and construction of the Project. 6. The City may be involved in certain activities, provide funding, and/or possibly provide materials in connection with and in support of the Project, and the Council may desire to pass through federal, state, CTIB or other local funds to the City for costs associated with such Project activities and/or materials. Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 5 Title: SWLRT Funding Agreements 7. The City may provide funding for certain non-FFGA components, including Locally Requested Capital Investments, through the transfer of City funds to the Council. 8. This Agreement is entered into between the Parties to provide a mechanism for the transfer of Project funds from the Council to the City for activities undertaken by the City for the Project (Part One), and for the transfer of City funds to the Council for activities undertaken by the Council for the Project and activities undertaken by the Council components related to, but not currently part of, the Project (Part Two). In addition, this Agreement establishes general provisions applicable to transfers from either Party to the other (Part Three). NOW, THEREFORE, the Parties hereby agree as follows: PART ONE ARTICLE 1. PURPOSE The purpose of Part One of this Agreement is to provide: a. A method for the transfer of funds from the Council to the City for activities performed or materials supplied by the City in connection with and in support of the Project; and b. Contractual provisions that address compliance with federal and state laws and regulations as well as Council procedures including, without limitation, federal requirements for the monitoring of the City's Project activities using federal grant funds. ARTICLE 2. SUBORDINATE FUNDING AGREEMENTS TRANSFERRING FUNDS FROM COUNCIL TO CITY 2.01 Transfer of Funds from Council to City. The Council will transfer Project funds to the City for the Project activities performed by the City. The transfer of funds from the Council to the City shall be in accordance with Subordinate Funding Agreements executed pursuant to this Article 2, each of which shall state the specific purpose for the funds, state the City’s responsibility with respect to those funds, and establish who will own any assets constructed or remaining upon completion of the work. Each such Subordinate Funding Agreement, in conjunction with this Agreement, shall be determined by the Council to constitute a subrecipient or vendor agreement with the Council for the purposes of any federal grant funds transferred to the City. The Council shall bear no responsibility for any costs incurred by the City for the Project that exceeds the amounts committed by Subordinate Funding Agreements as such agreements may from time to time be amended. 2.02 Subordinate Funding Agreements. In accordance with Section 2.01, the Parties shall enter into Subordinate Funding Agreements in order to facilitate the funding by the Council of Project activities to be performed by the City. The Parties anticipate there may be multiple such Subordinate Funding Agreements between them in connection with the Project. Each Subordinate Funding Agreement shall be in a form substantially similar to that attached as Exhibit A and shall follow and be subject to the terms of Part One and Part Three of this Agreement, unless expressly agreed to in writing otherwise. Notwithstanding any other Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 6 Title: SWLRT Funding Agreements provisions of this Agreement, this Agreement itself is not intended to create a specific financial obligation for either Party or to require either Party to enter into any specific Subordinate Funding Agreements, and no liability shall attach to either Party under this Agreement for refusing to enter into one or more subsequent Subordinate Funding Agreements. 2.03 Implementation of Subordinate Funding Agreements. The Council will only reimburse the City for Project activities that are the subject of a Subordinate Funding Agreement. Prior to entering into a contract with any third party (including for the acquisition of property rights) to accomplish the City’s reimbursable activities, or prior to authorizing any City employees to proceed with any reimbursable activities, the City shall present a work scope (including a work schedule), staffing plan, and detailed budget for such services or expenditures to the Council for review and approval. 2.04 Council Determination of Vendor or Subrecipient Relationship. The Council shall determine whether each Subordinate Funding Agreement is a subrecipient or vendor agreement. The Council shall state its determination in the Subordinate Funding Agreement. For subrecipient agreements, the City will be responsible to FTA for compliance with applicable federal laws, regulations, and deliverables. For vendor agreements, the Council will be responsible for compliance with applicable federal laws, regulations, and deliverables. 2.05 Modifications of Subordinate Funding Agreements. The following provisions apply to modifications of any Subordinate Funding Agreement: a. Rebudgeting within an approved budget is allowable as long as the budget is within the maximum amount of authorized funding. b.Modifications in work scope, if within the approved budget, are authorized when approved in writing by the Project Directors. c. Any other modifications to a Subordinate Funding Agreement shall require a written amendment of the Subordinate Funding Agreement executed by the Parties. d. Modification requests should be sent to the Project Directors. 2.06 Transfer of Project Funds to the City Under Subordinate Funding Agreements. The Council shall pay the City under Subordinate Funding Agreements as follows: a. Unless specifically agreed to by the Parties in and for a particular Subordinate Funding Agreement, payment to the City for Project costs under each Subordinate Funding Agreement shall be on a reimbursement basis based upon the submittal of invoices evidencing the expenditure of funds by the City for the Project. b. Unless specifically agreed to otherwise by the Parties in and for a particular Subordinate Funding Agreement, the City shall submit separate monthly invoices for each outstanding Subordinate Funding Agreement to the following address: Attn: Accounts Payable Southwest LRT Project Office 6465 Wayzata Blvd, Suite 500 St. Louis Park, MN 55426 or to such other address or person as the Council may designate by notice in writing. Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 7 Title: SWLRT Funding Agreements c. Each invoice shall reference the sequential number of the Subordinate Funding Agreement under which the invoice is to be paid. d. Each invoice shall include the following if the corresponding Subordinate Funding Agreement was determined by the Council to create a subrecipient relationship: i. Subrecipient Payment Request Form (Form C-22A-SPO) as shown in Exhibit B, ii. Subrecipient Monthly Progress Report (Form SPO P1) as shown in Exhibit B, and iii. Itemization of the expenditures for which payment is requested using the Subrecipient Invoice Detail (Form SPO F1) as shown in Exhibit B, along with supporting documentation. e. Each invoice shall include the following if the corresponding Subordinate Funding Agreement was determined by the Council to create a vendor relationship: i. SPO Payment Request Form (either Engineering-Consultant or Construction) 1) Engineering-Consultant Payment Request Form (Form C22A) as shown in Exhibit B for engineering related expenses, or 2) Construction Payment Request Form (Form C21A) as shown in Exhibit B for construction related expenses, ii. A description of activities undertaken in accordance with the Subordinate Funding Agreement, and iii. An itemized list of the expenditures for which payment is requested, along with any supporting documentation. f. If a Disadvantaged Business Enterprise (“DBE”) goal applies to the work performed under a Subordinate Funding Agreement, invoices shall include a DBE Reporting Form as shown in Exhibit B, or such other format as may be prescribed by the Council, and shall include the information required by Section 4.06(e) of this Agreement. g. After receipt of an invoice, the Council may request additional information from the City regarding the invoice in order to verify the accuracy and appropriateness of the expenditures for which reimbursement is requested or as required by the FTA for reporting purposes. h. Upon receipt of an invoice, the Council will make prompt payment of undisputed amounts as required by Minnesota Statutes, Section 471.425. Under either 49 C.F.R. § 18.22 or Minnesota State Statutes Section 471.425, the Council may dispute or deny part or all of any invoice payment request if it reasonably believes that the requested payment does not conform to the terms of this Agreement and the applicable Subordinate Funding Agreement. The Parties will promptly meet to review and discuss any disputed or denied payment requests and the dispute resolution process outlined in Section 6.11 of this Agreement will ensue if the Parties cannot agree. If the Council does not pay the invoiced amount within 35 days of its receipt, the Council shall pay interest on the non-disputed amount at the rate of 1-1/2 percent per month. Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 8 Title: SWLRT Funding Agreements i. No invoice payment shall be made by the Council without prior written amendment to the applicable Subordinate Funding Agreement, which would cause distribution of Project funds to exceed, cumulatively through such payment, the maximum amount of authorized funding under the applicable Subordinate Funding Agreement. j. Distribution of any funds to the City pursuant to an invoice, or approval of any report, shall not be construed as a Council waiver of any City noncompliance with this Agreement or the applicable Subordinate Funding Agreement. 2.07 Repayment of Unauthorized Use of Project Funds. Upon a finding by the Council that the City has made an unauthorized or undocumented use of Project funds, and upon a demand for repayment issued by the Council and supported by the reason for the finding, if the City agrees, the City shall promptly repay such amounts to the Council. If the City disagrees, the Parties will promptly meet to review and discuss any challenged use of funds already paid and the dispute resolution process outlined in Section 6.11 will ensue if the Parties cannot agree. Neither Party shall be deemed to have waived any rights or remedies available under state law, federal law, common law, or otherwise. 2.08 Prompt Payment to Subcontractors. Consistent with Minnesota Statutes, Section 473.142(f), if the City subcontracts any portion of the work under this Agreement or Subordinate Funding Agreements, the City shall pay such subcontractor within 10 Days of City's receipt of payment from the Council for undisputed services provided by the subcontractor. The City shall not, by reason of said payments, be relieved from responsibility for work done by the subcontractor and shall be responsible for the entire work under this Agreement or Subordinate Funding Agreement until the same is finally accepted by Council. ARTICLE 3. REQUIREMENTS FOR PROJECT FUNDED WORK 3.01 Allowable Costs; Unspent Funds. The City is authorized to use funds provided by the Council under this Agreement and per the terms of the Subordinate Funding Agreements only for allowable costs directly incurred for the Project. Allowable costs will be determined in accordance with the documents referenced in Section 4.05. Funds provided by the Council in Subordinate Funding Agreements may only be used for costs directly incurred: a. within the authorized work scope, b.during the project activity period, and c. in accordance with the approved budget for the funds. Any funds provided to the City under this Agreement and applicable Subordinate Funding Agreements which remain unspent after completion of the relevant Project activity shall be promptly repaid to the Council. 3.02 Documentation of Project Costs. All costs charged to the Project by the City must be supported by proper documentation, including properly executed payrolls, time records, invoices, contracts, receipts for expenses, or vouchers, evidencing in detail the nature and propriety of the charges per the requirements of Section 4.02 of this Agreement. Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 9 Title: SWLRT Funding Agreements 3.03 Establishment of Capital Assets. If Capital Assets, as defined by FTA and determined by the Council in a Subordinate Funding Agreement, are procured by or provided to the City under a Subordinate Funding Agreement, invoices shall include an Asset Tracking Log as shown in Exhibit B, or such other format as may be prescribed by the Council. 3.04 Establishment and Maintenance of Project Information. The City agrees to establish and maintain accurate, detailed, complete, and separate books, accounts, financial records, documentation, and inspection and quality assurance reports produced by City staff and/or contractors, and other evidence relating to the receipt and expenditure of all Project funds. All such Project information shall be established and maintained in accordance with generally accepted government accounting principles and practices and shall be retained intact by the City until the latest of: a. complete performance of this Agreement and all Subordinate Funding Agreements entered into pursuant thereto; b. six years following the term of this Agreement and all Subordinate Funding Agreements entered into pursuant thereto; c. six years following the close out of the Project by the Council and the FTA; or d. if any litigation, claim, or audit is commenced during any such periods, when all such litigation, claims or audits have been resolved. If the City engages any contractors to perform any part of the Project activities, the City agrees that the contract for such services shall include provisions requiring the contractor to establish and maintain Project information in accordance with the provisions of this Article and to allow audit of such information in the same manner provided with respect to the City in Section 3.05. The provisions of this Section 3.04 shall survive termination of this Agreement. 3.05 Reimbursed Costs Audit. The accounts and records of the City relating to the reimbursable costs for the Project shall be audited in the same manner as all other accounts and records of the City are audited. During the time of maintenance of information under section 3.04, authorized representatives of the Council, the Legislative Auditor and/or State Auditor in accordance with Minnesota Statutes, Section 16C.05, subdivision 5, the United States Secretary of Transportation, the FTA Administrator, and the United States Comptroller General in accordance with 49 U.S.C. Section 5325(g) will have access to all such books, records, documents, accounting practices and procedures, and other information for the purpose of inspection, audit, and copying during normal business hours. Proper facilities for such access and inspection shall be provided by the City. The provisions of this Section 3.05 shall survive termination of this Agreement. 3.06 Subcontractor Provisions. In addition to the requirements of section 4.06, if the City engages any contractors to perform any part of the Project activities, the City agrees that the contract for such services shall Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 10 Title: SWLRT Funding Agreements include, to the fullest extent allowed by law, all of the following provisions. These requirements are in addition to other requirements for such contracts set forth in this Agreement. a. The contractor must maintain all records and provide all reporting as required by this Agreement. b. The contractor must defend, indemnify, and save harmless the Council from all claims, suits, demands, damages, judgments, costs, interest, and expenses arising out of or by reason of the performance of the contracted work, caused in whole or in part by any act or omission of the contractor, including acts or omissions by any of its employees, subcontractors, or anyone for whose acts any of them may be liable. c. The contractor must provide and maintain insurance in amounts and types of coverage appropriate to the contracted work and naming the Council, the Counties Transit Improvement Board, and other funding partners as requested by the Council, as additional insureds, and shall provide to the City prior to commencement of the contracted work a certificate of insurance evidencing such insurance coverage. d. The contractor must be an independent contractor for the purposes of completing the contracted work. e. The contractor must acknowledge that the contract between the City and the contractor does not create any contractual relationship between the Council and the contractor. f. The contractor shall perform and complete the contracted work in full compliance with this Agreement and all applicable laws, statutes, rules, ordinances, and regulations issued by any federal, state, or local political subdivisions having jurisdiction over the contracted work. 3.07 Contract Information. The City shall, in connection with any contract entered into for the Project: a. Keep the Council informed as to the progress of such contract; b. Allow authorized representatives of the Council access to all meetings and documentation related to such contract; and c. Upon request, promptly provide the Council with copies of correspondence between the City and the contractor related to such contract. ARTICLE 4. FEDERAL REQUIREMENTS 4.01 Federal Requirements. Monies that may be provided to the City by the Council pursuant to this Agreement may be funded in whole or in part by the FTA. The requirements in this Article 4 are in addition to and, unless inconsistent and irreconcilable, do not supplant requirements found elsewhere in this Agreement. If any requirement in this article is inconsistent with a provision found elsewhere in this Agreement and is irreconcilable with such provision, the requirement in this Article 4 shall prevail. 4.02 Incorporation of Federal Grant. As the Council receives federal grants, including a potential Full Funding Grant Agreement, with respect to the Project, the Council will provide the City with a copy of each grant. The terms of each grant and any amendments shall Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 11 Title: SWLRT Funding Agreements be automatically incorporated by reference into this Agreement without further action by the Parties. These grants are collectively referred to in this Agreement as the “Federal Grants.” When performing work or expending funds for Project activities, the City agrees to comply with all applicable terms and conditions of the Federal Grants received by the Council with respect to the Project. 4.03 Incorporation of Specific Federal Requirements. Specifically, and without limitation, the City agrees to comply with the federal requirements set forth in Exhibit C and agrees to require, unless specifically exempted, third party contractors at every tier to comply with the same. 4.04 Federal Certifications and Assurances; Execution and Incorporation. The City agrees to comply with and to certify compliance with the most recent version of the federal Annual List of Certifications and Assurances for Federal Transit Administration Grants and Cooperative Agreements if determined by the Council to be a subrecipient in a Subordinate Funding Agreement. The City must certify compliance with the applicable provisions by signing the appropriate certification(s) and returning the signed certification(s) as part of the execution of an applicable Subordinate Funding Agreement. During the term of the applicable Subordinate Funding Agreement, the Council shall provide to the City the annual Federal Certifications and Assurances document, which the City shall execute and return to the Council. 4.05 Compliance with Federal Requirements; Incorporation of Specific Documents by Reference. The City agrees to comply with all federal statutes, rules, FTA Circulars, and Executive Orders which may be applicable to the Federal Grants. In particular, the City agrees to comply with the terms and conditions of the current version of the following documents when performing work or expending funds for Project activities under this Agreement or any Subordinate Funding Agreement: a. FTA Master Agreement b.Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, 49 C.F.R. Part 18 c. Grant Management Requirements, FTA Circular 5010.1D d.Full-Funding Grant Agreements Guidance, FTA Circular 5200.1A e. Third Party Contracting Requirements, FTA Circular 4220.1F f. Cost Principles for State, Local and Indian Tribal Governments, OMB Circular A-87 g. Audits of States, Local Governments, and Non-Profit Organizations, OMB Circular A- 133 as such statutes, rules, circulars, and executive orders may hereafter be amended or modified. The listed documents are incorporated by reference into this Agreement. Copies of these documents are available on the FTA website or, upon request by the City, from the Council. 4.06 Third Party Contracts. If the City decides to fulfill any of its obligations or duties under a Subordinate Funding Agreement through a third party contract to be paid for by funds received under this Agreement, the City agrees to the following provisions. These requirements are in addition to other requirements for such contracts set forth in this Agreement. Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 12 Title: SWLRT Funding Agreements a. Compliance with Federal Procurement Requirements. The City will comply with all applicable federal law, rules, and guidance relating to such procurement including, without limitation, the provisions of the most current version of the Third Party Contracting Requirements, FTA Circular 4220.1F, which document is incorporated by reference into this Agreement. A copy of this document is available on the FTA website or, upon request by the City, from the Council. b. Certification of City’s Procurement System. The City certifies that its procurement system complies with the standards described in the previous paragraph. c. Council Approval of Contracts. The City shall not execute any third party contract or otherwise enter into a binding agreement until it has first received written approval from the Council. The Council’s approval of any such third party contract is solely for the benefit of the Council and shall not relieve the City of the responsibility to ensure that such contracts are in the proper form and include all state and federal requirements. Additionally, a Subrecipient Contract Initiation Memo, as shown in Exhibit B, is required to be executed prior to any procurement over $50,000. Requests to enter into agreements should be sent to the Project Director. d. Inclusion of Provisions in Lower Tier Contracts. The City agrees to include adequate provisions to ensure compliance with applicable federal requirements in each lower tier subcontract financed in whole or in part with monies from the Project provided under this Agreement including all applicable provisions of this Agreement. Provisions to be included in such subcontracts include the provisions in Exhibit C. e. Disadvantaged Business Enterprise Requirements. For all work performed under Part One of this Agreement, the City will comply with the Council's DBE Program. In particular, the City agrees to comply with the requirements of the Council's "Disadvantaged Business Enterprise Pass Through Agreement and Program" document which is attached to and made a part of this Agreement as Exhibit D. For the purpose of Exhibit D, the following provisions apply: i. The Metropolitan Council DBE Liaison Officer, or designated staff, shall act as the City DBE Liaison Officer for the purposes of work under Part One of this funding Agreement. ii. The City agrees to submit to the Council for review, approval, and establishment of the appropriate DBE goal a Subrecipient Contract Initiation Memo, as shown in Exhibit B, for all procurements in excess of $50,000. Noncompliance with DBE requirements may result in sanctions, including ineligibility for reimbursement pursuant to 49 C.F.R. § 18.22. iii. The City will provide reports to the Council reflecting all invoices paid on procurements for which a DBE goal has been established and identifying all DBE activity on such procurements. iv. The City will report DBE activity, on the Disadvantaged Business Enterprise Reporting Form, to the Council on other purchase orders and invoices not included above with each Request for Payment. v. DBE eligibility will be based on the most recent DBE Directory from the Minnesota Unified Certification Program. Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 13 Title: SWLRT Funding Agreements f. Federal Procurement Basics. The City remains responsible for conforming its procurement processes to all applicable federal requirements for funds received from the Council under this Agreement and any Subordinate Funding Agreement. 4.07 Provisions Subject to Change. The City acknowledges that federal requirements in this Article 4 are subject to change and agrees that the most recent of these requirements shall govern this Agreement at any particular time. 4.08 No Federal Obligation. Monies provided under this Agreement may be financed in whole or in part by federal funds. However, payments to the City will be made by the Council. Pursuant to the Federal Transit Administration Master Agreement Section 2(f), the United States is not a party to this Agreement and no reference in this Agreement to the United States, the United States Department of Transportation, the FTA, or any representatives of the federal government makes the United States a party to this Agreement. The City shall include this clause in any contracts or agreements entered into pursuant to this Agreement. 4.09 Special Reporting Requirements. The Council is required to report to the FTA regarding the Project activities. Accordingly, the City agrees to provide the Council with any additional or follow-up information reasonably requested by the Council, in order to meet the Council’s FTA reporting requirements. PART TWO ARTICLE 5. SUBORDINATE FUNDING AGREEMENT TRANSFERRING FUNDS FROM CITY TO COUNCIL 5.01 Purpose. The purpose of Part Two of this Agreement is to provide a method for the transfer of City funds to the Council for activities undertaken by the Council for the Project and activities undertaken by the Council components related to but currently not part of the Project, should any such payment be authorized by the City. 5.02 Transfer of Funds Requires Subordinate Funding Agreement. The City may provide funding for components for related to but not part of activities undertaken by the Council for the Project and activities undertaking by the Council not part of the Project through the transfer of funds to the Council. Each such transfer of funds to the Council from the City shall be in accordance with one or more duly executed Subordinate Funding Agreements, each of which shall define the amount of funds committed by the City to the Council, specify the purpose for the funds, and establish who will own the asset constructed or remaining upon completion of the work. 5.03 Subordinate Funding Agreements. To facilitate funding by the City in accordance with Section 5.01, the Parties shall enter into Subordinate Funding Agreements. Subordinate Funding Agreements shall be in a form similar to Exhibit A and shall follow and be subject to the terms of Parts Two and Three of this Agreement, unless expressly agreed to in writing otherwise. Notwithstanding any other provisions of this Agreement, this Agreement itself is not intended to create a specific financial obligation for either Party or to require either Party to enter into any specific Subordinate Funding Agreements, and no liability shall attach to Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 14 Title: SWLRT Funding Agreements either Party under this Agreement for refusing to enter into one or more subsequent Subordinate Funding Agreements. 5.04 Implementation of Subordinate Funding Agreements. The City will only reimburse the Council for components related to the Project that are the subject of a Subordinate Funding Agreement. Prior to entering into a contractual obligation with any third party (including for the acquisition of property rights) to accomplish the Council’s obligations reimbursable by the City, or prior to authorizing any Council employees to proceed with any reimbursable actions, the Council shall present a work scope (including a work schedule), staffing plan, and detailed budget for such services or expenditures to the City for review and approval. 5.05 Modifications of Subordinate Funding Agreements. The following provisions apply to any modifications in a particular Subordinate Funding Agreement: a. Rebudgeting within an approved budget is allowable as long as the budget is within the maximum amount of authorized funding. b.Modifications in work scope, if within the approved budget, are authorized when approved in writing by the City Manager or designee, or such other person as the City may designate by notice to the Council. c. Any other modifications in a particular Subordinate Funding Agreement, including any increase in the maximum amount of authorized funding or changes in the applicable activity period, shall require a formal amendment of the Subordinate Funding Agreement executed by the Parties. 5.06 Transfer of Funds to the Council Under Subordinate Funding Agreements. The City shall pay the Council under Subordinate Funding Agreements as follows: a. Unless specifically agreed to otherwise by the Parties in and for a particular Subordinate Funding Agreement, payment to the Council for costs under each Subordinate Funding Agreement shall be on a reimbursement basis after the submittal of invoices evidencing the expenditure of funds by the Council. b. The Council shall submit separate monthly invoices for each outstanding Subordinate Funding Agreement to the following address: or to such other City address or person as the City may designate in writing. c. Unless the Parties otherwise agree, the Council shall submit each invoice to the City in the standard Council format and shall reference the sequential number of the Subordinate Funding Agreement under which the invoice is to be funded. d. Each invoice must include: i. A description of activities undertaken in accordance with the Subordinate Funding Agreement; Ms. Debra Heiser Engineering Director City of St. Louis Park 5005 Minnetonka Blvd St. Louis Park, MN 55416 Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 15 Title: SWLRT Funding Agreements ii. An itemized list of the expenditures for which payment is requested; and iii. Any supporting documentation. e. The Council shall add an administrative fee to each invoice to be paid by the City. For design and environmental professional services the fee shall be up to 3% of the actual professional service cost. If the City requests the Council to construct locally funded components related to, but currently not part of the Project, the City shall pay the following fees, which is a percentage of actual construction costs, for each professional service provided: i. Contract Administration 3% ii. Construction inspection 2% iii. Survey and staking 2% iv. Materials inspection 1% The above applicable fees and costs for professional services will be specified in Subordinate Funding Agreements. The Council reserves the right to adjust the fee percentages on an annual basis as amended in a Subordinate Funding Agreement. In the event this Agreement or the Subordinate Funding Agreement is terminated, the City shall be entitled to reimbursement of any unused portions of the above fee. f. After receipt of an invoice, the City may request additional information from the Council regarding the invoice in order to verify the accuracy and appropriateness of the expenditures for which reimbursement is requested. g. The City shall pay the Council the approved invoice amount within 30 days of its receipt. The City may dispute all of or any part of an invoice if it reasonably believes that the requested payment does not conform to the terms of this Agreement or the applicable Subordinate Funding Agreement. If disputed, the Parties will promptly meet to review and discuss the disputed or denied payment requests and the dispute resolution process outlined in Section 6.11 of this Agreement will ensue if the Parties cannot agree. Unless the City has disputed the payment of an invoice, if the City does not pay the invoiced amount within 30 days of its receipt, the Council shall charge and the City shall pay interest on the non-disputed amount at the rate of 1-1/2 percent per month. h. No invoice payment shall be made by the City without prior written amendment to the applicable Subordinate Funding Agreement, which would cause the distribution of funds to exceed, cumulatively through such payment, the maximum amount of authorized funding under the applicable Subordinate Funding Agreement. i. The City’s payment of any invoices or approval of any reports shall not constitute a waiver of any Council noncompliance with this Agreement or the applicable Subordinate Funding Agreement. 5.07 Repayment of Unauthorized Use of Funds. Upon a finding by the City that the Council has made an unauthorized or undocumented use of City funds, and upon a demand for repayment issued by the City and supported by the reason for the finding, if the Council agrees, the Council shall promptly repay such amounts to the City. If the Council disagrees, the Parties will promptly meet to review and discuss any challenged use of funds already paid and dispute resolution pursuant to Section 6.11 will ensue if the Parties cannot agree. Neither Party shall be Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 16 Title: SWLRT Funding Agreements deemed to have waived any rights or remedies available under state law, federal law, common law or otherwise. 5.08 Use of Funds; Allowable Costs. The Council is authorized to use funds provided by the City under this Agreement only for costs directly incurred under a specific Subordinate Funding Agreement. Funds provided by the City under Subordinate Funding Agreements may only be used for costs directly incurred: a. Within the authorized work scope; b.During the specified activity period; and c. In accordance with the approved budget for the funds. Upon completion of the Project, the Council shall refund to the City its proportionate share of local funding for the Project, subject to administrative and management adjustments. 5.09 Documentation of Costs. All reimbursable costs charged to the City by the Council must be supported by proper documentation, including properly executed payrolls, time records, invoices, contracts, receipts for expenses, or vouchers, evidencing in detail the nature and propriety of the charges. 5.10 Establishment and Maintenance of Information. The Council agrees to establish and maintain accurate, detailed, complete, and separate books, accounts, financial records, documentation, and other evidence relating to the receipt and expenditure of all funds from the City. All such information shall be established and maintained in accordance with generally accepted government accounting principles and practices and shall be retained intact by the Council until the latest of: a. Complete performance of this Agreement and all Subordinate Funding Agreements entered into pursuant thereto; b. Six years following the term of this Agreement and all Subordinate Funding Agreements entered into pursuant thereto; c. Six years following the close out of the Project by the Council and the FTA; or d. If any litigation, claim, or audit is commenced during any such periods, when all such litigation, claims or audits have been resolved. If the Council engages any contractors to perform any part of the activities reimbursable by the City, the Council agrees that the contract for such services shall include provisions requiring the contractor to establish and maintain information in accordance with the provisions of this Article and to allow audit of such information in the same manner provided with respect to the Council in this Section 5.10. The provisions of this Section 5.10 shall survive termination of this Agreement. 5.11 Audit. The accounts and records of the Council relating to costs reimbursable by the City shall be audited in the same manner as all other accounts and records of the Council are audited. During the time of maintenance of information under Section 5.10, authorized representatives of the City; the Legislative Auditor and/or State Auditor in accordance with Minnesota Statutes, Section 16C.05, subdivision 5; the United States Secretary of Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 17 Title: SWLRT Funding Agreements Transportation; the FTA Administrator, and the United States Comptroller General in accordance with 49 U.S.C. Section 5325(g); will have access to all such books, records, documents, accounting practices and procedures, and other information for the purpose of inspection, audit, and copying during normal business hours. Proper facilities for such access and inspection shall be provided by the Council. The provisions of this Section 5.11 shall survive termination of this Agreement. 5.12 Use of Contractors. If the Council engages any contractors to perform any activities reimbursable by the City under Part Two of this Agreement, the Council agrees that the contract for such services shall include, to the fullest extent allowed by law, all of the following provisions. These requirements are in addition to other requirements for such contracts set forth in this Agreement. a. The contractor must maintain all records and provide all reporting as required by this Agreement. b. The contractor must defend, indemnify, and save harmless the City from all claims, suits, demands, damages, judgments, costs, interest, and expenses arising out of or by reason of the performance of the contracted work, caused in whole or in part by any negligent act or omission of the contractor, including negligent acts or omissions of its employees, subcontractors, or anyone for whose acts any of them may be liable. c. The contractor must provide and maintain insurance in amounts and types of coverage appropriate to the contracted work and naming the City as an additional insured, and provide to the Council a certificate of insurance evidencing such insurance coverage. d. The contractor must be an independent contractor for the purposes of completing the contracted work. e. The contractor must acknowledge that the contract between the Council and the contractor does not create any contractual relationship between the City and the contractor. f. The contractor shall perform and complete the contracted work in full compliance with this Agreement and all applicable laws, statutes, rules, ordinances, and regulations issued by any federal, state, or local political subdivisions having jurisdiction over the contracted work. 5.13 Contract Information. The Council shall, in connection with any contract entered into for reimbursable work under Part Two of this Agreement: a. Keep the City informed as to the progress of such contract; b. Allow authorized representatives of the City access to all meetings and documentation related to such contract; and c. Upon request, promptly provide the City with copies of correspondence between the Council and the contractor related to any such contract. PART THREE ARTICLE 6. GENERAL PROVISIONS Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 18 Title: SWLRT Funding Agreements 6.01 Purpose. The purpose of Part Three of this Agreement is to establish the general provisions that apply to this Agreement and each Subordinate Funding Agreement executed by the Parties hereafter. 6.02 Independent Contractors. The Parties agree that any and all persons employed by or on behalf of a Party to perform any work or duties as an agent of a Party under this Agreement shall not be considered employees of the other Party. Any and all claims that may or might arise under the Workers Compensation Act of Minnesota on behalf of said employees or persons while so engaged, and any and all claims made by any third person as a consequence of any act or omission on the part of said employees or persons while so engaged in any of the work contemplated in this Agreement, shall not be the obligation or responsibility of the other Party. This Agreement is not intended to constitute an interchange of government employees within the meaning of Minnesota Statutes, Section 15.51, et seq. 6.03 Entire Agreement. This Agreement constitutes the entire agreement between the Parties and supersedes all oral agreements and negotiations between the Parties relating to the subject matter of this Agreement. As stated herein, this Agreement depends upon one or more Subordinate Funding Agreements for the actual authorization of work or transfer of any reimbursements and the terms of any subsequent Subordinate Funding Agreements shall be considered together with this Agreement. 6.04 Non-Waiver of Immunity and Limits. Nothing in this Agreement shall be construed to waive the immunities or liability limits provided in Minnesota Statutes, Chapter 466, or other applicable state or federal law. The provisions of Minnesota Statutes, Section 471.59, subdivision 1a, specifically apply to this Agreement. 6.05 Amendments. The terms of this Agreement may be changed only by mutual agreement of the Parties. Such changes shall be effective only upon the execution of written amendments signed by authorized officers of the Parties to this Agreement. 6.06 Non-Waiver. The failure of either Party at any time to insist upon the strict performance of any or all of the terms, conditions, and covenants in this Agreement shall not be deemed a waiver by that Party of any subsequent breach or default in the said terms, conditions, or covenants by the other Party. 6.07 Severability. The provisions of this Agreement shall be deemed severable. If any part of this Agreement is rendered void, invalid or unenforceable, such rendering shall not affect the validity and enforceability of the remainder of this Agreement unless the part or parts which are void, invalid or otherwise unenforceable shall substantially impair the value of the entire Agreement with respect to either Party. 6.08 Assignment Prohibited. Neither Party shall assign their obligations under this Agreement without receiving the express written consent of the other Party. 6.09 Time. The Parties agree that all obligations undertaken under this Agreement, and with respect to any subsequent Subordinate Funding Agreements entered into by the Parties, will be diligently performed in a manner consistent with the proper exercise of professional care and with due consideration to project timelines and constraints. Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 19 Title: SWLRT Funding Agreements 6.10 Notices. Except as otherwise expressly provided in this Agreement, all requests, notices, demands, authorizations, directions, consents, waivers or other communications required or permitted under this Agreement shall be in writing and shall either be: a. Delivered in person; b. Deposited postage prepaid in the certified mails of the United States, return receipt requested; c. Delivered by a nationally recognized overnight or same-day courier service that obtains receipts; or d. Delivered via email attachment. Such communications shall be directed to the individuals specified below or to such other persons and at such other addresses as either Party may at any time or from time to time designate for itself by notice in accordance with this Section. Each such request, notice, demand, authorization, direction, consent, waiver or other document shall be deemed to be delivered to a Party when received at its address set forth or designated as above provided. For the Council: Project Director Southwest LRT Project Office 6465 Wayzata Blvd, Suite 500 St. Louis Park, MN 55426 Phone: 612-373-3820 For the City: City Manager City of St. Louis Park 5005 Minnetonka Blvd St. Louis Park, MN 55416 6.11 Dispute Resolution. A dispute resolution process shall be used for any unresolved issue, dispute or controversy between the parties before any legal remedies are exercised. The dispute resolution process contains a three level dispute resolution ladder that escalates a dispute from the project management level through the executive management level. The City is represented by the City Manager or designee. The Council is represented from Level 1 to 3 in the following order: Deputy General Manager, General Manager, and Regional Administrator. At each level, representatives of the Parties shall meet and continue to explore resolution until either party determines, in good faith, that effective resolution is not possible at the current level, and notifies the other party that the process is elevated to the next level. If either or both parties make such a determination at any point during issue resolution at Level 3, then the dispute resolution process has been exhausted. 6.12 Project Director. The Council's Project Director for purposes of administration of this Agreement, and any Subordinate Funding Agreements entered into pursuant to this Agreement, is the person whose title is listed in Section 6.11, or such other person designated in writing by the Council's Regional Administrator. The City's Project Director for purposes of administration of this Agreement and any Subordinate Funding Agreements entered into Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 20 Title: SWLRT Funding Agreements pursuant to this Agreement is the person whose title is listed in Section 6.10, or such other person designated in writing by the City. The City's Project Director shall: a. Coordinate the carrying out of the City's obligations under this Agreement; b. Coordinate Subordinate Funding Agreement work scope activities with the Council's Project Director; c. Attend meetings called by the Council's Project Director for Southwest Light Rail Project; and d. Complete training to be provided by the Council with respect to Council and federal requirements under this Agreement and any Subordinate Funding Agreements entered into pursuant to this Agreement. 6.13 Applicable Law and Venue. This Agreement shall be interpreted in accordance with the laws of the State of Minnesota. Venue for all legal proceedings arising out of or relating to this Agreement or any associated Subordinate Funding Agreements, or breach thereof, shall be in the state or federal court with competent jurisdiction in Hennepin County, Minnesota. 6.14 Effective Date and Termination. This Agreement shall be effective on February 3, 2015. This Agreement or a Subordinate Funding Agreement shall terminate upon the earliest of: a. Completion of construction of the Project and reimbursement of all costs provided for in this Agreement and all Subordinate Funding Agreements entered into pursuant thereto; b. A determination by the Council that the Project or Subordinate Funding Agreement cannot proceed; c. A determination by the City that a Subordinate Funding Agreement transferring City funds to the Council cannot proceed, however, this Agreement may not be terminated if a Subordinate Funding Agreement is outstanding; or d. A determination by the Council that sufficient funds do not exist, or are not reasonably projected to exist, in order to complete the Project or a Subordinate Funding Agreement. The City agrees that Project closeout or termination of this Agreement or any particular Subordinate Funding Agreement does not invalidate continuing obligations imposed on the City by this Agreement or such Subordinate Funding Agreements or any agreements entered into pursuant to this Agreement or a Subordinate Funding Agreement. Project closeout or termination of this Agreement does not alter the Council's authority to disallow costs and recover funds on the basis of a later audit or other review, and does not alter the City's obligation to return any funds determined to be due to the Council. The Council agrees that Project closeout or termination of this Agreement or any particular Subordinate Funding Agreement does not invalidate continuing obligations imposed on the Council by this Agreement or such Subordinate Funding Agreements or any agreements entered into pursuant to this Agreement or a Subordinate Funding Agreement. Project closeout or termination of this Agreement does not alter the City’s authority to disallow costs and recover funds on the basis of a later audit or other review, and does not alter the Council's obligation to return any funds determined to be due to the City. Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 21 Title: SWLRT Funding Agreements 6.15 Exhibits. All attached exhibits are deemed to be incorporated into this Agreement. [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK; SIGNATURE PAGE TO FOLLOW.] Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 22 Title: SWLRT Funding Agreements IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives on the dates indicated below. Furthermore, this Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which, taken together, shall constitute one and the same agreement. CITY OF ST. LOUIS PARK By: ________________________________ Its: Mayor Date: ______________________________ By: ________________________________ Its: City Manager Date: ______________________________ METROPOLITAN COUNCIL By: _____________________________ Its: Date: ___________________ Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 23 Title: SWLRT Funding Agreements LIST OF EXHIBITS Exhibit Description A Form of Subordinate Funding Agreement B Sample Forms C Specific Federal Clauses D Disadvantaged Business Enterprise Pass Through Agreement and Program Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 24 Title: SWLRT Funding Agreements Reference Numbers: SWLRT Project: 61001 Metropolitan Council: 14I061 City of St. Louis Park: PROJECT: SOUTHWEST LIGHT RAIL TRANSIT PROJECT AGREEMENT NAME: Amendment No. 1 to the Master Funding Agreement PARTIES: • Metropolitan Council • City of St. Louis Park, Minnesota WHEREAS, The Metropolitan Council (“Council”) and the City of St. Louis Park (“City”) collectively (“Parties”) entered into a Master Funding Agreement (“Agreement”), effective February 3, 2015, to address financial and staff support matters. WHEREAS, the Parties desire to amend the Agreement. NOW, THEREFORE, the Parties agree that the Agreement is amended in the following particulars effective as of August 24, 2015: 1. Whereas No. 1 is deleted in its entirety and the following is inserted in its place: The Council, metropolitan area cities, public agencies, and transit funders are engaged in activities to develop the Project, an approximately 14.5 mile proposed extension of the METRO Green Line which will operate from downtown Minneapolis through the cities of St. Louis Park, Hopkins, Minnetonka, and Eden Prairie. 2. Whereas No. 6 is deleted in its entirety and the following is inserted in its place: The City may be involved in certain activities, provide funding, and/or materials in connection with and in support of the Project, and the Council may desire to pass through federal, state, CTIB or other local funds to the City for costs associated with such Project activities and/or materials. 3. Whereas No. 8 is deleted in its entirety and the following is inserted in its place: This Agreement is entered into between the Parties to provide a mechanism for the transfer of Project funds from the Council to the City for activities undertaken by the City for the Project (Part One), and for the transfer of City funds to the Council for activities undertaken by the Council for the Project and activities undertaken by the Council not part of the Project (Part Two). In addition, this Agreement establishes general provisions applicable to transfers from either Party to the other (Part Three). 4. Article 5. Section 5.01 is deleted in its entirety and the following is inserted in its place: Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 25 Title: SWLRT Funding Agreements Purpose. The purpose of Part Two of this Agreement is to provide a method for the transfer of City funds to the Council for activities undertaken by the Council for the Project and activities undertaken by the Council not part of the Project, should any such payment be authorized by the City. 5. Article 5. Section 5.02 is deleted in its entirety and the following is inserted in its place: Transfer of Funds Requires Subordinate Funding Agreement. The City may provide funding for activities undertaken by the Council for the Project and activities undertaken by the Council not part of the Project through the transfer of funds to the Council. Each such transfer of funds to the Council from the City shall be in accordance with one or more duly executed Subordinate Funding Agreements, each of which shall define the amount of funds committed by the City to the Council, specify the purpose for the funds, and establish who will own the asset constructed or remaining upon completion of the work. 6. Article 5. Section 5.08 is deleted in its entirety and the following is inserted in its place: Use of Funds; Allowable Costs. The Council is authorized to use funds provided by the City under this Agreement only for costs directly incurred under a specific Subordinate Funding Agreement. Funds provided by the City under Subordinate Funding Agreements may only be used for costs directly incurred: d. Within the authorized work scope; e. During the specified activity period; and f. In accordance with the approved budget for the funds. Upon completion of the Project, the Council shall refund to the City its proportionate share of local funding for the Project, subject to administrative and management adjustments. [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK; SIGNATURE PAGE TO FOLLOW.] Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 26 Title: SWLRT Funding Agreements IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives on the dates indicated below. Furthermore, this Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which, taken together, shall constitute one and the same agreement. CITY OF ST. LOUIS PARK By: ________________________________ Its: Mayor Date: ______________________________ By: ________________________________ Its: City Manager Date: ______________________________ METROPOLITAN COUNCIL By: _____________________________ Its: Date: ___________________ Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 27 Title: SWLRT Funding Agreements Reference Numbers: SWLRT Project: 61001 Metropolitan Council: 14I061F City of St. Louis Park: ___________ PROJECT: SOUTHWEST LIGHT RAIL TRANSIT PROJECT MASTER AGREEMENT: Master Funding Agreement – City of St. Louis Park PARTIES TO AGREEMENT: • Metropolitan Council (“Council”) • City of St. Louis Park (“City”) SUBORDINATE FUNDING AGREEMENT City of St. Louis Park – 06 (Louisiana Station Underpass & Trail) This Subordinate Funding Agreement (“SFA”) with the City of St. Louis Park is entered into by and between the above named Parties. WHEREAS: 1. The Parties entered into a Southwest Light Rail Transit Project (“Project”) Master Funding Agreement (“MFA”), effective February 3, 2015, and amended effective August 24, 2015. 2. The Parties provided in the MFA that certain aspects of funding for the Project or components related to but not part of the Project would be determined in subsequent SFAs. 3. The Parties desire to enter into this SFA to transfer City funds to reimburse the cost for Council activities for professional services and the Council’s administrative fee to produce design plans and environmentally review proposed Project components. 4. The Parties acknowledge that the planning of the Project will require numerous federal, state and local processes, approvals and funding commitments. The environmental review and other processes for the Project are ongoing and the Project is subject to change to address those processes. The outcomes of those processes may affect whether the components requested in this SFA will ultimately be constructed. NOW, THEREFORE, in reliance on the statements in these recitals, the Parties hereby agree as follows: 1. Maximum Amount of Authorized Funding. The cost for the Council’s professional services and administration activities authorized by this SFA shall not exceed $78, 000 unless authorized in a subsequent agreement or an amendment to this SFA. The Maximum Amount of Authorized Funding is subject to amendment based on, but not limited to, additional environmental documentation, as determined necessary. 2. SFA Budget. The budget for the Council’s activities described in this SFA is provided as Exhibit A. City funds provided for this SFA may only be used for reimbursing the Council’s costs for activities directly incurred within the Description of Activities and as detailed in the MFA. Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 28 Title: SWLRT Funding Agreements 3. Description of Activities. The activities to be performed by the Council and reimbursed by the City includes the development of design plans and completing required federal, state, and local environmental documentation for a new underpass of the Bass Lake Spur/Cedar Lake LRT Regional Trail at proposed Louisiana Station with pedestrian and bicycle connections to the Cedar Lake LRT Regional Trail in the City (“Louisiana Station Underpass & Trail”). See Exhibit B for a general depiction and location of the Louisiana Station Underpass & Trail. The Louisiana Station Underpass & Trail is anticipated to be constructed by the Project and includes excavation, temporary shoring, utility relocations, retaining walls, pavement, lighting, fencing, and bridges for the pedestrian/bike trail and freight railroad tracks. 4. The Council will incorporate the Louisiana Station Underpass & Trail design plans in the proposed Project construction bid documents if: a) the environmental review of the Project and the components described in this SFA allow the construction of the Louisiana Station Underpass & Trail; and b) the Project is permitted to proceed to construction. The Louisiana Station Underpass & Trail construction specifications will be incorporated in the overall specifications within the Project construction bid documents. No separate or stand alone specifications for the Louisiana Station Trail design plans will be created. 5. Environmental Documentation. The Federal Transit Administration (“FTA”) is the Project’s lead federal agency under the National Environmental Policy Act of 1969 (“NEPA”) and the Council is the Responsible Governmental Unit under the Minnesota Environmental Policy Act of 1973 (“MEPA”). The FTA and the Council will complete the environmental review process for the Project, including the components described in this SFA proposed to be constructed as part of the Project. Notwithstanding any contrary language in the MFA or this SFA, the disclosure of draft environmental documents are subject to the Minnesota Government Data Practices Act, Minn. Statutes, Chapter 13, and applicable federal law and the Council in its sole discretion shall determine when such documents can or will be shared with the City. 6. Project Activity Periods. The term of this SFA shall be effective as of August 24, 2015 and shall terminate on the date all costs under this SFA have been reimbursed, unless terminated earlier consistent with the terms of the MFA. Notwithstanding the terms of this SFA or the MFA, the City agrees that it shall not terminate this SFA. 7. No Guarantee of Construction. This SFA describes terms requiring the City to reimburse the Council’s cost for design activities associated with the requested Louisiana Station Underpass & Trail. It does not guarantee that the Louisiana Station Underpass & Trail will satisfy environmental review or be constructed. The City and the Council acknowledge that nothing in this Agreement shall require the Council to take any action or make any decision that will prejudice or compromise any review or decision-making processes required under state and federal environmental review laws, regulations or rules. The Parties intend this Agreement to be interpreted consistent with statutory and other legal authorities, including but not limited to the MEPA and the NEPA. The Parties agree that this SFA does not limit the alternatives or mitigative measures that the Council may undertake in the development and construction of the Project. The Council retains the right to make decisions and necessary approvals associated with Project requirements. 8. Incorporation. The terms, conditions, and definitions of the MFA are expressly incorporated into this SFA. Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 29 Title: SWLRT Funding Agreements CITY OF ST. LOUIS PARK METROPOLITAN COUNCIL By: By: Its: Its: Date: Date: By: Its: Date: Special City Council Meeting of August 24, 2015 (Item No. 2a) Page 30 Title: SWLRT Funding Agreements Exhibit A SFA Budget – Louisiana Station Underpass & Trail Item Cost Professional Services Design Cost $60,000 Environmental Documentation Cost1 18,000 Professional Services Subtotal $78,000 Administrative Fee (up to 3% of Professional Services) 0 Maximum Amount of Authorized Funding $78,000 1Additional environmental documentation (e.g., cultural resources survey, contaminated property investigation, etc.) may be required and authorized in a subsequent agreement or by amending this SFA, as determined necessary. Page 1 of 1 Exhibit B Louisiana Station Underpass & Trail Special City Council Meeting of August 24, 2015 (Item No. 2a) Title: SWLRT Funding Agreements Page 31 Special City Council Meeting of August 24, 2015 (Item No. 2a) Title: SWLRT Funding AgreementsPage 32 Special City Council Meeting of August 24, 2015 (Item No. 2a) Title: SWLRT Funding AgreementsPage 33 Meeting: Study Session Meeting Date: August 24, 2015 Discussion Item: 1 EXECUTIVE SUMMARY TITLE: Future Study Session Agenda Planning – September 8 and September 28, 2015 RECOMMENDED ACTION: The City Council and the City Manager to set the agenda for a Special Study Session on September 8, 2015 and the regularly scheduled Study Session on September 28, 2015. POLICY CONSIDERATION: Does the Council agree with the agendas as proposed? SUMMARY: At each study session approximately five minutes are set aside to discuss the next study session agenda. For this purpose, attached please find the proposed discussion items for a Special Study Session on September 8, 2015 and the regularly scheduled Study Session on September 28, 2015. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Future Study Session Agenda Planning - September 8 & 28, 2015 Prepared by: Debbie Fischer, Administrative Services Office Assistant Approved by: Tom Harmening, City Manager Study Session Meeting of August 24, 2015 (Item No. 1) Page 2 Title: Future Study Session Agenda Planning – September 8 and September 28, 2015 Special Study Session, September 8, 2015 – 6:30 p.m. Tentative Discussion Item 1. 2016 Budget Discussion: General Fund, CIP, Utility Rates, Solid Waste, Storm Water and Other Funds – Administrative Services (55 minutes) Staff will provide information on 2016 budget requests and review CIP, Utility Rates, Storm Water, Solid Waste and other funds. Directors will be present to provide information or answer questions as needed. This discussion is to provide information and answer questions prior to setting the preliminary levy on September 21. Reports 2. Connect the Park! – 2015 Bikeways 3. Arlington Row West Update End of Meeting: 7:25 p.m. Study Session, September 28, 2015 – 6:30 p.m. Tentative Discussion Items 1. Future Study Session Agenda Planning – Administrative Services (5 minutes) 2. Corridor-Wide Housing Strategy SWLRT – Community Development (30 minutes) County & Urban Land Institute staff will review the SWLRT Corridor–wide Housing Strategy developed SW Community Works Housing Workgroup. The strategy includes a plan to support and encourage a full range of housing choices along the SW Corridor station areas. 3. Boards & Commissions Annual Meeting w/ Council Program – Administrative Services (30 minutes) Staff will present a draft of a new program requested by Council for annual commission reporting. The proposed program would require that all commissions meet at the same time with council each year to provide a brief overview of previous year work and upcoming goals. 4. Boards & Commissions Appointment Process – Administrative Services (30 minutes) Council directed staff to make recommendations on changes to the appointment and reappointment process for Boards & Commissions. Information will include possible updates to the application, as well as gathering supplemental information from candidates. 5. Off-Sale Intoxicating Liquor Discussion – Administrative Services (30 minutes) This is a continued discussion from July 13, 2015. Staff will present information on size limitation options for off-sale intoxicating liquor establishments. 6. Microdistillery Discussion – Administrative Services (15 minutes) Staff will provide an overview of new MN regulations regarding Microdistilleries and allow time to discuss if Council is interested in adding this type of establishment and license category. Communications/Meeting Check-In – Administrative Services (5 minutes) Time for communications between staff and Council will be set aside on every study session agenda for the purposes of information sharing. Reports 7. August 2015 Monthly Financial Report End of Meeting: 8:55 p.m. Meeting: Study Session Meeting Date: August 24, 2015 Discussion Item: 2 EXECUTIVE SUMMARY TITLE: 2016 Budget, CIP and Utility Rates RECOMMENDED ACTION: No formal action required. This report is to assist with the Study Session discussion regarding 2016 Budget recommendations, to receive direction for further conversation at the September 8th Special Study Session, and in preparation for setting the 2016 Preliminary Property Tax Levies on September 21, 2015. POLICY CONSIDERATION: • Is the Council able to identify at this time what it might want to certify as a preliminary levy on September 21, 2015? If not, what would the Council like staff to bring back for discussion on September 8, 2015? • Does the Council want to certify the maximum HRA levy amount for the 2016 levy? • Does the Council have any questions or suggested changes to the attached CIP? • Is the Council in support of the proposed utility rate adjustment plans? • Is there other information that Council would like to review in more detail? • Are there any other service delivery changes Council would like to have considered? SUMMARY: Included is information pertaining to the 2016 Budget and 2016 Preliminary General Property Tax and HRA levies. City Manager Tom Harmening and staff are currently analyzing submitted budgets for 2016. Also included in the report are some items of significance that are being considered. In addition, staff would like direction on any other major changes, programs, or policies that should be evaluated during the preparation of the 2016 Budget. The 2016 – 2025 Capital Improvement Plan (CIP) is attached as well for the City Council to review. Finally, there is a brief discussion on utility rates and recommended rate changes. FINANCIAL OR BUDGET CONSIDERATION: Information regarding the budget, tax levies, CIP, and utility rates are provided in this report. VISION CONSIDERATION: All Vision areas are taken into consideration and are an important part of our budgeting process. SUPPORTING DOCUMENTS: Discussion 2016 Budget Calendar 2016 – 2025 CIP Funding Source Summary 2016 – 2025 CIP Projects by Dept and Funding Source 2016 Proposed Utility Rates – Impact on a Property Prepared by: Brian A. Swanson, Controller Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Study Session Meeting of August 24, 2015 (Item No. 2) Page 2 Title: 2016 Budget, CIP and Utility Rates 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; a levy increase, modest increase in other fees and charges where appropriate to fit with business costs, maintain high quality and responsive service delivery, hold expenditures flat where possible with adjustments for some modest growth based on essential business needs, funding for a wage and benefit contribution increase, utility rate increases, and continued long range financial planning. At that time the Council also indicated that as a target it desired any levy adjustment for 2016 to be consistent with the 10 year average of 4.56% Discussion Topics – Monday, August 24th: The purpose of the Study Session discussion is to make sure service delivery and business needs are congruent with Council expectations in preparing the 2016 Budget. For 2016, staff used the budget guiding principles, as well as Vision, and the new key organizational cultural behaviors of Collaboration, Quality and Responsiveness for preparing budget recommendations. The Study Session discussion is intended to be at the higher/big bowl level to allow Council, if possible, to provide levy direction to staff as well as identify other initiatives they would like staff to add or explore. Based upon this discussion, staff can then prepare more information to bring back to the City Council as needed at a later date. Below is the order of the budget presentation and discussion for this Study Session: 1. Discussion on overall budget, requests and council requested items for staff to explore. 2. Answer any City Council questions on the 2016 – 2025 CIP (Capital Improvement Plan). 3. 2016 Preliminary Property Tax Levy range discussion. 4. 2016 Preliminary HRA Levy discussion. 5. 2016 Utility Rates and impact. 6. Council questions, comments, expectations, and data requests for upcoming meetings, including the budget calendar. The 2016 Preliminary Budget Items of Significance: Legislative directives: • There are no levy limits in place for 2016. • Local Government Aid has been approved to be issued in accordance with a formula set by the state. Currently the City is scheduled to receive $539,434 in 2016, which is $26,965 more than the $512,466 allocated in 2015. These dollars go into the Capital Replacement Fund as in previous years. Staffing Costs & Wages: Funds for staffing are the largest expenditure of the City’s operating budget. In building the 2016 budget recommendations, a wage adjustment of 2.5% is being used as an assumption. As a reminder, all 5 union contracts are open for 2016. Benefits: For 2016 the City has received a favorable renewal from HealthPartners for an average premium increase of 12%. Staff continues to work with the City’s benefits consultant and internal benefits committee on cost containment on claims. Based on last year’s input from staff, and the philosophy adopted by the City to fund coverage differently for employee only Study Session Meeting of August 24, 2015 (Item No. 2) Page 3 Title: 2016 Budget, CIP and Utility Rates versus employees who cover dependents, we recommend $319,200 be set aside in 2016 for an increased benefit contribution (this averages to an additional $100 per employee per month to cover increased premium costs). Staff plans to bring more information to Council in the near future on recommended plan design and employer contribution. The wellness incentive benefit for 2015 and beyond was set at $40 per employee per month ongoing until a change is recommended (this will remain at $40 per employee per month for 2016). PERA Coordinated Plan: Employee contribution of 6.50% of salary and employer contribution of 7.50% of salary in 2015 will remain the same in 2016. PERA Police and Fire: Employee contribution of 10.8% and employer contribution of 16.2% in 2015 will remain the same in 2016. Summary of Significant 2016 Budget Personnel Requests That Are Included: The most significant requests received from departments in the 2016 budget relate to staffing. Original requests from departments for additional staff range from approximately $751,000 to $973,000 depending on the staffing model being proposed ($101,000 of this is reserved for any other compensation adjustment, if needed, for market or other changes related to basic compensation program). This amount does not include the cost of the standard adjustment for wages and benefits. All requests are in the process of being reviewed by the City Manager with each applicable Department Head. We anticipate some changes will be made to the staffing requests and the City Manager will bring the Council more detailed information and recommendations this fall. In order to determine the final recommendations staff will continue to review business needs and funding and also look at alternatives for service delivery with some requests and moving some requests to future year(s) for consideration. Below is the summary of staffing requests and funding recommendations. Note – these are the staffing requests made by Department Directors and do not constitute at this time a recommendation from the City Manager. What staffing additions or changes are requested at this time for 2016? • Administrative Services - Election Judges - $36,000 – Cyclical for Presidential election. General Fund is funding source. • Engineering - Civil Engineer – FT benefit earning - $90,288 – The position would spend time working on Connect the Park, Pavement Management and transportation planning initiatives. Funding would come from the General Fund and utilize temporary salaries of $25,000 currently budgeted with the remaining funded via the Pavement Management Fund and Connect the Park (Sidewalk and Trails Fund) for approximately $32,600 each. • Fire Department - Overtime - $5,000 – Increase suggested based on call volume and covering shift work. Funding is the General Fund. • Fire Department - Paid on Call (POC) - $70,912 – Increase in POC volume and staffing. Funding is the General Fund. • Fire Department provided 2 staffing options for consideration. The City Manager and Fire Chief will continue discussions on operations, business needs and future staffing models for consideration and anticipate a final recommendation from the City Manager this fall. o Option 1 – Add a career 24/7 Firefighter slot (3 FTE = 1 firefighter slot) and Community Risk Reduction Intern - $334,750 – Positions requested for increased Study Session Meeting of August 24, 2015 (Item No. 2) Page 4 Title: 2016 Budget, CIP and Utility Rates service needs in the community, being more proactive and more resilient. The career firefighter slot actually requires the hiring of 3.45 firefighters to fill the one slot at approximately $89,800 per full FTE. – Funding is the General Fund. o Fire Department – Option 2 – FT Fire Inspector (1 FTE) and Community Risk Reduction Intern - $113,500 – Positions requested for increased service needs in the community, and being more proactive and more resilient. Funding is the General Fund. • Inspections – Temporary Construction Codes Inspector - $31,000 – To allow for increased inspection services next spring or summer, if needed, assuming construction continues or grows from the current pace. General Fund is the funding source. • Inspections – Property Maintenance Intern - $3,904 – Conduct city wide assessment of all single family properties related to property maintenance and take follow up action as necessary. General Fund is the funding source. • Operations and Recreation – Organized Rec., Rec. Center and Pool - $47,190 – Minimum wage increases. General Fund is the funding source. • Operations and Recreation – Rec. Center – Overtime – $(5,000) – Decrease in overtime due to rink renovations for the General Fund. Overtime costs will return to 2015 levels in 2017. • Police - Officer – FT benefit earning - $85,172 - To continue to support moving from 4 districts to 5 districts as undertaken in 2015 to meet patrol staffing levels. As discussed in 2015, one position was added this year and this second positon was held for 2016. Given the strong growth occurring in the community and the anticipated growth associated with SWLRT, it is important to remain proactive versus reactive to community needs. General Fund is the funding source. • Operations and Recreation – Utility Funds - Public Service Worker FT benefit earning - $70,000 - To support Utilities operations, storm water initiatives, plowing and sidewalk maintenance. To assist staff with overall maintenance operations and work in coordination with other maintenance divisions. This was discussed in the 2015 budget process for addition in 2016. Utility Funds will fund this position. • Operations and Recreation – Solid Waste – Intern - $15,600 – Request due to increase demands in the Solid Waste Programs funded via the Solid Waste Fund. It is also recommended to add an additional full time employee in this area to help with education, programs and outreach in solid waste including working on multi-family programs. The recommended funding level for this position is $71,613. • Community Development – Development Fund – Economic Development Specialist increase from 0.8 FTE to 1.0 FTE - $19,200 – Request due to increase redevelopment support small business initiatives and projects within the City. Summary of Significant 2015 Budget Non-personnel Requests That Are Included: • Administrative Services – Increased expenditure projections came in for estimated property, liability and casualty insurance and recording fees for minutes totaling approximately $35,000. • Engineering – Increase of $30,000 for MN State Statute required traffic signal timing optimization. Study Session Meeting of August 24, 2015 (Item No. 2) Page 5 Title: 2016 Budget, CIP and Utility Rates • Fire – A cumulative increase in revenues of approximately $70,000 based on historical receipts for fire and sprinkler alarm permits, Fire Insurance Premium Tax and a new potential revenue for Park Nicollet Post Discharge Program. The cumulative increase in expenditures is approximately $77,000 for supplies, small tools, repairs, increased compliance testing or equipment, CERT member training, professional development and wellness. • Information Resources – Increase of $16,360 for computer services for LOGIS, Hennepin County and Zuercher Tech. • Inspections – Proposed increase of permit revenues of approximately $170,000 based on historical and projected projects in 2016. • Operations and Recreation – Revenues are projected to decline by $230,000 due to rink renovation in 2016 from March to October. This one time decrease will be offset with revenue from fund balance from the General Fund. On the expenditure side, the cumulative increase of these proposed changes is $4,000 for required inspections, equipment for the pool and reductions based on historical costs. • Police - The cumulative increase for the budget changes submitted is $14,700 and encompasses items such as Taser replacements, ammunition increase costs, postage and software licenses. • Cable TV Fund – Staff recommends continuing with the plan to reduce the transfer from the Cable TV Fund to the General Fund by $25,000 per year. Reducing the annual transfer by $25,000 each year through 2019 and by $34,506 in 2020 will improve sustainability in the fund until the franchise fee agreement expires in 2021. At that point, if no new agreement is available, the fund could operate through 2022 and into early 2023 before running out of resources as currently budgeted. • Development Fund – Proposed Park the Street III event totaling approximately $25,000. • Housing Rehabilitation Fund – Aggregate decrease of $13,000 for the Discount Loan, Foreclosure and Move-up Programs based on historical costs. • Utility Funds – Proposed increases of approximately $4,600 for estimated insurance increases. Fees, Charges and Other Revenues - Staff will continue to review current fee data based on cost analyses and other communities before making recommendations for the 2016 Fee Schedules for the Council to consider later this year. CIP (Capital Improvement Plan) - Staff has completed the first and second round work on the CIP, and a report is attached. This information has been programmed into the LRFMP, and Accounting is analyzing the results in an effort to create long-term sustainability in funds and is also looking at where changes in funding or expenditures/expenses need to occur for the City Council and City Manager to consider. Study Session Meeting of August 24, 2015 (Item No. 2) Page 6 Title: 2016 Budget, CIP and Utility Rates LRFMP (Long Range Financial Management Plan): This document will be presented at future meetings with Council to assist in setting property tax levies, fees, utility rates and budgets. 2016 Preliminary Property Tax Levy In working to develop a 2016 Preliminary Property Tax Levy for the City Council to consider, there are some important key items to keep in mind: • Funding challenges in several funds impacting long-term sustainability • As in past years, the 2016 Preliminary Property Tax Levy adopted by the City Council on September 21, 2015, can be decreased, but cannot be increased after that date. Trends in Valuations and Possible Property Tax Implications: For the 2015 assessment, St. Louis Park’s taxable market value increased by 8.0% with all of the dominant property types increasing in value. Composition of the change is summarized as +4.9% for single-family homes, +9.9% for condos and townhomes, +14.1% for apartments, and the commercial-industrial sectors at +8.6%. As can be surmised by the above figures, there will be a shift of the property tax burden to commercial and apartment properties for the Payable 2016 tax period. This shift will be mitigated somewhat when considering all taxing jurisdictions that make up the typical property tax bill (in the aggregate, other County jurisdictions increased at higher rates for single-family homes but at lower rates for apartments and commercial properties). Fiscal Disparities: The City’s proposed net contribution decreased by $710,663 or approximately 18.3% for 2016. The City is a net contributor to the pool of $3,168,815, or approximately 5.1% of the City’s total tax capacity for 2016. 2015 City Final Levy and 2016 City Preliminary Levy Range A synopsis of prior year levy information and the 2016 Proposed Preliminary Levy Range is shown below: 1. The 2015 Final Levy was $26,985,377, which was 5.50% or $1,407,469 more than 2014. 2. Based on the assumptions noted below, at this point in time the budgets which have been submitted would require a 2016 Preliminary Property Tax Levy range increase of approximately 5.50% - 6.50% more than the 2015 Final Levy. a. The 5.50% levy increase would allow the tax levy supported staffing adjustments noted earlier in this report, including Option 2 for the Fire Department, changes in business related expenditures as noted in this report, but no substantial changes to existing programs, nor adding any new programs or initiatives. b. A 6.50% levy increase would allow Council to fund the staffing adjustments and business related expenditures noted earlier in this report including Option 2 for the Fire Department. In addition, this levy amount would allow for additional property tax dollars to be allocated to the Capital Replacement Fund of approximately $325,000. These additional dollars would help stabilize financial needs in this fund or they could also be utilized entirely or in part for other new initiatives or programs the Council would like to undertake. Study Session Meeting of August 24, 2015 (Item No. 2) Page 7 Title: 2016 Budget, CIP and Utility Rates HRA Levy Based on current and future infrastructure needs, the HRA Levy is recommended to be set at the maximum allowed of 0.0185% of estimated market value for the 2016 Budget, which is consistent with previous years. This levy is committed to pay back a loan from the Development Fund that helped cash flow the City’s obligation for Highway 7 and Louisiana and is expected to be paid off in 2021. By law these funds could also be used for other housing and redevelopment purposes but considering the significant infrastructure needs within the City, the proceeds have not been used for housing. 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. Staff is recommending the 2016 Preliminary HRA Levy be set at the maximum. Utility Funds: All utility funds will be presented during the budget process as in previous years with a review of rates in accordance with the City’s Long Range Financial Management Plan (LRFMP). As in previous years, all utility rates are analyzed and adjusted as needed to meet operational and capital needs, while also working to meet appropriate cash position guidelines. • Water: For 2016, the City will be in the sixth year of the ten year plan for increasing the fixed rate charges to reduce volatility in the fund due to seasonality usage fluctuations. Usage rates will also be increased to meet more aggressive demands for infrastructure replacement within the City’s aging system. Significant expenses for this fund are capital, staffing, the Reilly Superfund site and debt service. • Sewer: Rates are also expected to increase due to the City’s more aggressive infrastructure replacement plan. Sewer costs are mainly to support the Metropolitan Council of Environmental Services charge (MCES), staffing and capital costs. • Solid Waste: Rates for this fund are expected to remain flat or increase very slightly depending on any enhanced or new initiatives the Council would like to pursue with multi-family recycling and organics. The major expenses for this fund are the contract charges and staffing. • Storm Water: Based on Council direction to place more emphasis on storm water management, along with increasing regulations, rates will need to continue to increase significantly over the next three to four years. These increases will help meet the increased capital needs and debt service obligations when debt is most likely issued in 2016. Significant expenses for this fund currently are capital and staffing. What do the possible proposed utility rate increases mean to a typical homeowner? Based on operational and capital needs being anticipated in the utility funds, the increase will be $50 - $60 per year for a typical homeowner. A typical homeowner in this scenario is a family of four who uses 30 units of water per quarter (22,500 gallons), and has 60 gallon service, which is consistent with prior year scenarios. Staff will bring back specific recommendations on September 8th when it receives final MCES charges for the Sewer Fund in the next week or two. Based on those recommendations, Council can request modifications in utility rates leading up the October 19, 2015 meeting where Council will be asked to adopt the 2016 utility rates which will be in place for consumption or services provided beginning on January 1, 2016. Study Session Meeting of August 24, 2015 (Item No. 2) Page 8 Title: 2016 Budget, CIP and Utility Rates NEXT STEPS: As the 2016 budget process continues, the following preliminary schedule snapshot has been developed for Council: September 8 (Tues) High level 2016 Budget, CIP, fees, and utility rates discussion. Department Directors or their designees will also be in attendance. This meeting will be more of a proposed preliminary levy discussion with direction provided to staff to prepare information for the September 21st meeting adopting preliminary levies. September 21 Council and EDA establish 2016 preliminary property tax levies. (Levies can be reduced, but not increased for final property tax levies.) October 5 Public Hearing – 1st Reading on Fees. October 12 Review and discussion of 2016 budget, CIP, utility rates and LRFMP. Directors or their designees in attendance as needed. October 19 Adoption of 2016 Utility Rates and 2nd Reading of Fees on Consent. November 9 (If necessary) Final budget or CIP discussion prior to Truth in Taxation Public Hearing and budget presentation. December 7 Truth in Taxation Public Hearing and budget presentation December 14 (If necessary) Continuation of Public Hearing and any budget discussion. December 21 Council adopts 2015 Revised Budget, 2016 Budgets, final tax levies (City and HRA), and 2016 - 2025 CIP. City of St. Louis Park 2016 Preliminary Budget Calendar Date Department(s) Description March 30, 2015 All 2016–2025 Capital Improvement Plan (CIP) is available for update. May 5, 2015 @ 4:30 pm All CIP access restricted to Read-Only June 22 CM/Admin/Acctg. Study Session with Council to discuss 2016 Budget and assumptions. June 23 @ 11am-noon All Meet with Departments to discuss any significant changes in business or staffing after meeting with City Council. June 23 @ 4:30 pm All All 2016 Budget worksheets available in Insight to all departments. All revenues and expenditures are to be budgeted including review of fee schedule and Utility Rate Analyses. July 6 – 17 @ 4:30pm All 1st Review/Edit of 2016 – 2025 CIP by Departments July 28 @ 4:30pm All Staffing requests and major changes in programs due to Accounting. July 28 @ 4:30 pm Inspections Building revenue projections due to Accounting July 28 @ 4:30 pm All 2016 Proposed Budget worksheets and fees due. Access to Read-Only. Aug. 10 – 21 Each Department Individual review of budgets – CM, Dep. CM, Director, and Acctg. August 24 C.M./Accounting High level 2016 Budget, CIP, Utility Rates discussion. September 8 (Tues) City Manager, Directors & Acctg. High level 2016 Budget, CIP, Utility Rates discussion with City Manager, Department Directors and Accounting in attendance. Sept. 9 – 18 @4:30 pm All 2nd and Final Review/Edit of 2016 – 2025 CIP by Departments September 21 C.M./Accounting Approval of Preliminary 2016 Budgets, Tax Levies and Franchise Fees (if applicable) by Council and/or EDA. By September 30 Accounting Certification of 2016 Preliminary Property Tax Levy due to Hennepin County and levy reports due to State of Minnesota October 5 Accounting/Clerk Public Hearing – 1st Reading for Fees – To Sun by 9/17 for publication October 12 C.M., Directors and Accounting Review and discussion of 2016 Budget, CIP, Utility Rates and LRFMP review and discussion by City Council. October 12 – 20 All Final review of all 2016 revenues and expenditures for all funds. In addition, review of the CIP, Utility Rates and LRFMP. October 19 Accounting Adoption of 2016 Utility Rates and 2nd Reading of Fees on Consent. October 20 @ 4:30 pm All Final changes submitted to City Manager/Deputy C.M. and Controller November 9 (if needed) CM/Admin/Acctg. Final Budget or CIP Discussion with City Council prior to TNT. December 7, 2015 Accounting Truth in Taxation Public Hearing and Budget Presentation December 14 (if needed) C.M./Accounting Council discussion of any 2016 Budget related items (if necessary) December 21, 2015 C.M./Accounting 2016 Budget, Final Property Tax Levies (City and HRA), and 2016 – 2025 CIP approved by Council. By December 28, 2015 Accounting Certification of tax levy and other required forms – Due 12-30-15 By December 31, 2015 Accounting 2016 Budgets uploaded from Insight into JDE. January, 2016 Admin Services Budget completed, printed (if necessary) and on City website. January, 2016 Accounting Summary Budget Report to OSA - due 1/31/2016. Note: Items in blue are meetings with the City Council Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 9 Capital Improvement Program City of St. Louis Park, MN FUNDING SOURCE SUMMARY 2016 2025thru Total20162017201820192020Source20212022202320242025 Cable TV - Time Warner Equipment Grant 545,900156,550 10,250 14,100 79,600 285,400 Capital Replacement Fund 37,388,8974,853,013 3,974,757 3,785,861 8,073,729 3,243,483 2,215,218 3,370,620 3,046,664 2,275,464 2,550,088 E-911 Funds 663,25036,325 111,325 36,325 106,325 36,325 36,325 116,325 36,325 111,325 36,325 EDA Development Fund 275,000185,000 45,000 45,000 G.O. Bonds 23,444,1251,017,000 1,538,625 5,062,000 6,314,000 5,747,000 1,913,000 1,052,500 100,000 600,000 100,000 Hockey Association 1,041,660104,166 104,166 104,166 104,166 104,166 104,166 104,166 104,166 104,166 104,166 HRA Levy 1,012,5421,012,542 Municipal State Aid 14,328,000882,000 1,522,000 1,770,000 3,381,000 908,000 816,500 908,500 1,380,000 1,380,000 1,380,000 Park Improvement Fund 16,570,5005,786,500 1,690,000 1,498,000 1,051,000 1,183,500 1,062,000 877,500 1,050,000 1,412,000 960,000 Pavement Management Fund 26,260,4282,162,500 3,324,250 2,581,390 2,233,750 2,951,788 3,198,250 2,105,750 2,564,250 2,564,250 2,574,250 Police & Fire Pension 3,302,000720,000 135,000 279,500 156,500 82,000 33,000 150,000 106,500 1,489,500 150,000 PW Engineering Budget 68,00065,000 3,000 PW Operations Budget 3,644,901356,388 362,364 322,605 375,547 343,008 347,489 357,500 405,500 360,500 414,000 Reilly Industries 17,50017,500 Sanitary Sewer Utility 8,462,3381,876,333 721,333 741,333 791,333 841,001 808,335 779,001 809,001 829,001 265,667 Solid Waste Utility 110,00010,000 45,000 10,000 45,000 Special Assessments 2,944,625121,000 675,625 158,000 30,000 690,000 1,200,000 70,000 State of Minnesota 1,040,0001,040,000 Stormwater Utility 10,678,6703,443,667 1,441,667 744,667 718,667 588,667 1,574,667 577,667 859,667 348,667 380,667 Tax Increment - Elmwood 3,026,5093,026,509 Tax Increment Financing 75,00075,000 U.S. Government 800,000800,000 Unfunded 6,900,000100,000 100,000 100,000 100,000 100,000 100,000 100,000 6,100,000 100,000 Water Utility 27,313,5771,558,582 3,501,332 1,849,332 2,091,832 2,263,999 3,906,334 2,394,000 2,456,000 4,712,500 2,579,666 23,259,024 20,087,694 24,191,330 25,590,449 18,798,337 189,913,422GRAND TOTAL 16,805,284 12,893,529 13,018,073 23,514,873 11,754,829 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 10 Total20162017201820192020Source20212022202320242025 Report criteria: All Address data All Categories All Departments All Priority Levels All From Street data All Projects All Source Types All Street Name data All To Street data Status: Active or Completed or Pending Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 11 Capital Improvement Program City of St. Louis Park, MN PROJECTS & FUNDING SOURCES BY DEPARTMENT 2016 2025thru Total20162017201820192020Department20212022202320242025 Buildings 31150001 30,000City Hall Garage Overhead Doors 30,000 31160001 100,000City Hall Roof Top AC Units (two units)100,000 31160003 20,000City Hall Garage Unit Heaters 20,000 31170001 700,000City Hall Council Chambers Remodel 700,000 31170002 30,000City Hall Remodel 2nd and 3rd floor restrooms 30,000 31190001 15,000City Hall Electric Vehicle Charger 15,000 31200001 60,000City Hall Timber Retaining Walls 60,000 31210001City Hall/Police Campus Landscaping 15,00015,000 31230001City Hall ITE & Gould Elect Panel Replacement 25,00025,000 31250001CH Windows, Wall Coatings and Caulking Replacement 200,000200,000 32160002 20,000PD Dispatch Kitchen Remodel 20,000 32170001 60,000Police Station replace boiler system 60,000 32180002Police Station - Replace office furnishings 210,000210,000 32180004Police Station Concrete Sidewalk 15,00015,000 32180005Police Station Replace Window Blinds 25,00025,000 32190001Police Station Remodel Restrooms 75,00075,000 32190002 45,000Police StationShooting Range Exhaust 45,000 32200001 7,000Police Station Water Heaters 7,000 32230001Police Station Replace Light Fixtures 80,00080,000 32230003Police- Replace Ceiling Tiles 40,00040,000 33140002 15,000 15,000MSC & Fire Stations CO Nox Sensor Replacement 75,00015,000 15,000 15,000 33160001 20,000MSC Bay'sConvert HVAC to Digital Controls 20,000 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 12 Total20162017201820192020Department20212022202320242025 33160002 20,000MSC Pavement and Curb Repair 20,000 33170001 20,000MSC Convert Exterior HID to LED 20,000 33170002 75,000MSC Service Bay Sealant and Stripping 75,000 33170003 12,000MSC Manual Wash Replacement 12,000 33180001MSC Service Bays-Striping 00 33180002MSC Fuel Station Pump Controls 25,00025,000 33190001 15,000MSC Air Compressor Replacement 15,000 33190002 50,000MSC 3rd Bay Sealant and Stripping 50,000 33190003 180,000MSC Car Wash Unit Replace with Automatic 180,000 33200003 50,000MSC 2nd Bay-Sealant 50,000 33210001MSC 2nd Floor Office Carpeting/Floor Covering 15,00015,000 33210002MSC Paint Booth Maintenance 25,00025,000 33220001MSC Bays 1, 2 & 3 Roofing 400,000400,000 33220002MSC Campus Landscaping 10,00010,000 33240001MSC Interior Light Fixtures Replacment 100,000100,000 33250001MSC Fuel Station Replacement 50,00050,000 34160002 100,000Fire Stations 1 & 2 Apparatus bay floor coating 100,000 34160003 20,000Fire Stations 1 & 2 Garage Door Loops Closing Sys 20,000 34170001 65,000Fire Station 1 & 2 Fire Truck Exhaust Capture 65,000 34180001Fire Station 1 & 2 audio/visual replacements 10,00010,000 34190001 50,000Fire Station #1 Training Tower modifications 50,000 3424001FS #1 and #2 Carpet Replacement 35,00035,000 35240001Fire Station #1 and #2 Landscaping 15,00015,000 3525001Fire Station #2 Replace light fixtures 45,00045,000 36190002 5,000,000Westwood Naturce Center new building 5,000,000 37170001 60,000Rec Center Remodel Offices 60,000 40181600Parking Lot - City Hall East 110,000110,000 40181601Parking Lot - Westwood Nature Center 34,02034,020 40181602Parking Lot - MSC 70,62070,620 40201600 38,588Parking Lot - City Hall Lower 38,588 40201601 17,850Parking Lot - Fire Stn #1 17,850 40201602 12,600Parking Lot - Fire Stn #2 12,600 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 13 Total20162017201820192020Department20212022202320242025 8,314,000345,000 1,022,000 300,000 5,310,000 177,000Capital Replacement Fund 130,000 425,000 195,000 165,000 245,000 283,678214,640 69,038Pavement Management Fund 8,597,678345,000 1,022,000 514,640 5,310,000 246,038Buildings Total 130,000 425,000 195,000 165,000 245,000 8,597,678345,000 1,022,000 514,640 5,310,000 246,038Buildings Total 130,000 425,000 195,000 165,000 245,000 Cable TV 11151001 120,000Van Cameras 120,000 11161001 750Announcer Headsets 750 11161002 500Shotgun mics 500 11161003 300Hand-held mics 300 11161004 35,000Replacement edit systems 35,000 11171001 2,000Wireless mic systems 2,000 11171002 7,000CG 7,000 11171003 250CD Player 250 11172006 1,000Announcer intercom,1,000 11181001300-foot audio snake & reel 2,0002,000 11181002Announcer Monitor 300300 1118100350-foot audio snake 400400 11181004Behringer Audio Equipment 1,5001,500 11181005Camcorders 7,5007,500 11181006DVD recorders 1,5001,500 11181007Unit pro light kit 900900 11191001 500DVD Recorders 500 11191002 30,000Slow-motion replay 30,000 11191003 70012-channel audio mixer 700 11191004 500Shotgun mics 500 11191005 300Hand-held mics 300 11191006 10,200NLE stations 10,200 11191007 900Microphones 900 11191008 1,500Tripods 1,500 11191009 35,000Replacement edit systems 35,000 11201001 120,000Van Cameras 120,000 11201002 20,000Van Camera Cases 20,000 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 14 Total20162017201820192020Department20212022202320242025 545,900156,550 10,250 14,100 79,600 285,400Cable TV - Time Warner Equipment Grant 545,900156,550 10,250 14,100 79,600 285,400Cable TV Total 11201003 13,000Van Camera Cables 13,000 11201004 15,000LCD monitors 15,000 11201005 15,000Studio cameras 15,000 11201006 900Microphones 900 11201007 900Camera monitors 900 11201008 2,500Hard-Drive Video Recorder 2,500 11201009 6,000Conveter for Recorder 6,000 11201010 36,000Tripods for On Location 36,000 11201011 4,200SD/HD converter 4,200 11201012 16,500Video Switcher 16,500 11201013 1,500DVD recorder 1,500 11201014 28,200Playback systems 28,200 11201015 4,500Production switcher 4,500 11201016 1,200Teleprompter 1,200 545,900156,550 10,250 14,100 79,600 285,400Cable TV Total Engineering 40144000 2,250,000 650,000Storm Water- Bass Lake Preserve Rehab 2,900,000 40151600 121,000 110,000 37,500Parking Lot Rehabilitation Project 564,000158,000 5,500 10,000 2,000 120,000 40154001 300,000Storm Water- MCWD Cold Storage Site 300,000 40160003 463,500Concrete Replacement- SW-C&G-CB 463,500 40161000 2,964,250Street - Local Street Rehab (Area 5)2,964,250 40161100 782,000Street - MSA Street Rehab (Flag & Quentin) 782,000 40161200 269,388Street Mt Proj - Sealcoat Streets (Area 1) 269,388 40161300 47,500 46,500Traffic Signal - Repl Control Cabinets 146,50052,500 40162000 917,000CTP! Sidewalk - Trail - Bikeway Installations 2016 917,000 40163000 420,000Sanitary Sewer- Mainline Rehab (Area 5) 420,000 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 15 Total20162017201820192020Department20212022202320242025 40164000 500,000Storm Water- Walker Pond Expansion 500,000 40170003 279,250Concrete Replacement- SW-C&G-CB 279,250 40171000 6,144,000Street - Local Street Rehab (Area 4)6,144,000 40171001 431,250Street - Reconstruction (Utica Avenue)431,250 40171100 1,119,500Street - MSA Street Rehab (Louisiana Ave) 1,119,500 40171101 402,500Street - MSA Street Rehab (Texas S of Mtka) 402,500 40171200 642,364Street Mt Proj - Sealcoat Streets (Area 2 & 3) 642,364 40171300 75,000Traffic Signal- CLR at Louisiana 75,000 40171700 1,150,000Bridge - W 37th St @ Minnehaha Creek 1,150,000 40172000 1,223,000CTP! Sidewalk - Trail - Bikeway Installations 2017 1,223,000 40173000 440,000Sanitary Sewer- Mainline Rehab (Area 6) 440,000 40174000 450,000Storm Water- Louisiana Oaks Pond Rehab 450,000 40175000 275,000Water- Rehab WTP 16 Reservior 275,000 40180003Concrete Replacement- SW-C&G-CB 279,250279,250 40181000Street - Local Street Rehab (Area 6)4,223,5004,223,500 40181100Street - MSA Street Rehab (CLR W of Lou) 1,380,0001,380,000 40181200Street Mt Proj - Sealcoat Streets (Area 4) 272,105272,105 40181700Bridge - Louisiana Ave @ Minnehaha Creek 1,495,0001,495,000 40182000CTP! Sidewalk - Trail - Bikeway Installations 2018 4,962,0004,962,000 40183000Sanitary Sewer- Mainline Rehab (Area 7) 460,000460,000 40184000Storm Water- Oregon Pond Basin Rehab 400,000400,000 40186000Street- W36th Street Reconstruction 2,039,0512,039,051 40186001Street- Wooddale Ave Reconstruction 2,000,0002,000,000 40190003 279,250Concrete Replacement- SW-C&G-CB 279,250 40191000 3,269,000Street - Local Street Rehab (Area 7)3,269,000 40191100 1,380,000Street - MSA Street Rehab (CLR E of Lou) 1,380,000 40191101 1,000,500Street - MSA Street Rehab (Ottawa)1,000,500 40191102 1,000,500Street - MSA Street Rehab (Beltline Blvd) 1,000,500 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 16 Total20162017201820192020Department20212022202320242025 40191200 278,047Street Mt Proj - Sealcoat Streets (Area 5) 278,047 40192000 6,214,000CTP! Sidewalk - Trail - Bikeway Installations 2019 6,214,000 40193000 480,000Sanitary Sewer- Mainline Rehab (Area 8) 480,000 40194000 270,000Storm Water- Browndale Pond Rehab 270,000 40194001 90,000Storm Water- Sumter Pond Rehab 90,000 40195000 935,000Water - Recoat Reservoir 2 @ WTP #6 935,000 40197000 3,000Street - Excelsior Blvd Resurfacing 3,000 40200003 279,250Concrete Replacement- SW-C&G-CB 279,250 40201000 5,158,500Street - Local Street Rehab (Area 8)5,158,500 40201100 808,000Street - MSA Street Rehab (Texas Ave N of Mtka) 808,000 40201200 284,008Street Mt Proj - Sealcoat Streets (Area 6) 284,008 40201300 100,000Railroad - Whistle Quiet Zones 100,000 40202000 5,647,000CTP! Sidewalk - Trail - Bikeway Installations 2020 5,647,000 40203000 510,000Sanitary Sewer- Mainline Rehab (Area 1) 510,000 40204000 109,000Storm Water- Lamplighter Pond Rehab 109,000 40204001 109,000Storm Water- Otten Pond Rehab 109,000 40209000 0SWLRT - Xenwood Underpass 0 40210003Concrete Replacement- SW-C&G-CB 279,250279,250 40211000Street - Local Street Rehab (Area 1)5,519,0005,519,000 40211100Street - MSA Street Rehab (W28th St)816,500816,500 40211101Street - MSA Street Rehab (Edgewood/Cambridge) 690,000690,000 40211200Street Mt Proj - Sealcoat Streets (Area 7) 289,989289,989 40212000CTP! Sidewalk - Trail - Bikeway Installations 2021 1,813,0001,813,000 40213000Sanitary Sewer- Mainline Rehab (Area 2) 520,000520,000 40214000Storm Water- Twin Lakes Sed Basin Rehab 1,242,0001,242,000 40215000Water- Recoat Elevated Water Tower #2 1,540,0001,540,000 40220003Concrete Replacement- SW-C&G-CB 279,250279,250 40221000Street - Local Street Rehab (Area 2)4,476,5004,476,500 40221100Street - MSA Street Rehab (Shelard 908,500908,500 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 17 Total20162017201820192020Department20212022202320242025 Pkwy) 40221200Street Mt Proj - Sealcoat Streets (Area 8) 290,000290,000 40222000CTP! Sidewalk - Trail - Bikeway Installations 2022 952,500952,500 40223000Sanitary Sewer- Mainline Rehab (Area 3) 540,000540,000 40224000Storm Water- Westdale Sed Basin Rehab 248,000248,000 40230003Concrete Replacement- SW-C&G-CB 279,250279,250 40231000Street - Local Street Rehab (Area 3)4,975,0004,975,000 40231100Street - MSA Street Rehab (TBD)1,380,0001,380,000 40231200Street Mt Proj - Sealcoat Streets (Area 1) 300,000300,000 40233000Sanitary Sewer- Mainline Rehab (Area 4) 570,000570,000 40234000Storm Water- Cedar Manor Lake Rehab 528,000528,000 40240003Concrete Replacement- SW-C&G-CB 279,250279,250 40241000Street - Local Street Rehab (Area 4)5,025,0005,025,000 40241100Street - MSA Street Rehab (TBD)1,380,0001,380,000 40241200Street Mt Proj - Sealcoat Streets (Area 2) 300,000300,000 40243000Sanitary Sewer- Mainline Rehab (Area 5) 580,000580,000 40244000Storm Water- Flood Area #24 1,200,0001,200,000 40246000Street - I394 Ramp / CD Road Improvement 3,000,0003,000,000 40247000Street - Excelsior Blvd (Lou - W City Lim) 3,000,0003,000,000 40247001Traffic Signal Project - CSAH 25 @ Beltline Blvd. 500,000500,000 40250003Concrete Replacement- SW-C&G-CB 279,250279,250 40251000Street - Local Street Rehab (Area 5)5,025,0005,025,000 40251100Street - MSA Street Rehab (TBD)1,380,0001,380,000 40251200Street Mt Proj - Sealcoat Streets (Area 3) 310,000310,000 53245500Water Project - WTP #6 GAC Upgrade 2,190,0002,190,000 53245501Reilly Site - Install Monitor Well (W413)35,00035,000 121,493,7029,034,638 13,391,864 17,668,906 15,245,797 13,042,258Engineering Total 12,715,239 7,704,750 8,084,750 17,491,250 7,114,250 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 18 Total20162017201820192020Department20212022202320242025 22,444,125917,000 1,438,625 4,962,000 6,214,000 5,647,000G.O. Bonds 1,813,000 952,500 500,000 1,012,5421,012,542HRA Levy 14,228,000782,000 1,522,000 1,770,000 3,381,000 908,000Municipal State Aid 816,500 908,500 1,380,000 1,380,000 1,380,000 25,976,7502,162,500 3,324,250 2,366,750 2,233,750 2,882,750Pavement Management Fund 3,198,250 2,105,750 2,564,250 2,564,250 2,574,250 68,00065,000 3,000PW Engineering Budget 1,702,401186,888 187,364 142,105 189,547 151,508PW Operations Budget 150,489 155,000 197,500 147,000 195,000 17,500Reilly Industries 17,500 6,720,000640,000 660,000 680,000 700,000 730,000Sanitary Sewer Utility 740,000 760,000 790,000 800,000 220,000 2,944,625121,000 675,625 158,000 30,000Special Assessments 690,000 1,200,000 70,000 1,040,0001,040,000State of Minnesota 9,951,0003,380,000 1,375,000 675,000 635,000 493,000Stormwater Utility 1,517,000 523,000 803,000 275,000 275,000 3,026,5093,026,509Tax Increment - Elmwood 75,00075,000Tax Increment Financing 800,000800,000U.S. Government 6,000,000Unfunded6,000,000 25,487,250845,250 3,334,000 1,771,000 1,889,500 2,200,000Water Utility 3,790,000 2,300,000 2,350,000 4,607,500 2,400,000 121,493,7029,034,638 13,391,864 17,668,906 15,245,797 13,042,258Engineering Total 12,715,239 7,704,750 8,084,750 17,491,250 7,114,250 Fire 65160001 87,000SCBA Fill Stations 87,000 65170001 77,300SCBA Radio Integration 77,300 65180001UAV 10,00010,000 65990001 8,000 8,000 8,000Thermal Imagers 88,00016,000 8,000 8,000 8,000 16,0008,000 65990002 20,000 20,000Outside Warning Sirens 80,00020,000 20,000 65990003 324,594SCBA 697,877373,283 65990004Hydraulic Rescue Tool 30,00030,000 65990005 32,000 32,000Auto-CPR Device 64,000 65990006 125,000Turnouts 275,000150,000 65990007 30,000Helmets/Boots 65,00035,000 65990008 5,250 5,500Air Monitors 23,2506,000 6,500 65990009 30,000AED's 30,000 1,527,427549,844 197,300 26,000 33,500 32,000Fire Total 178,000 14,000 436,283 8,000 52,500 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 19 Total20162017201820192020Department20212022202320242025 1,527,427549,844 197,300 26,000 33,500 32,000Capital Replacement Fund 178,000 14,000 436,283 8,000 52,500 1,527,427549,844 197,300 26,000 33,500 32,000Fire Total 178,000 14,000 436,283 8,000 52,500 Operations & Recreation 20130080 5,000 5,000Oak Hill Park Northern Lights (LED)10,000 2020xxxx 0Parking Lot Seal Coat - Oak Hill Park 0 20225007Rec Center Arenas Rubber Floor Replacement 250,000250,000 2023xxoxParking Lot Seal Coat - Dakota Park 00 2023xxxxParking Lot Seal Coat - Aquila Park 00 21160201 17,000Aquila Park Building Locks and Security Camera 17,000 21161103 60,000Carpenter Park Ball Field Fence Replacement 60,000 21161304 12,000Cedar Knoll Park/Carlson Field Scoreboard 12,000 21162706 48,500Playground Eqpt Repl - Jersey Park 48,500 21162907 48,500Playground Eqpt Repl - Justad Park 48,500 21163618 34,000Louisiana Oaks Park Bldg Cameras & Door Lock Add. 34,000 21164205 58,500Playground Eqpt Repl - Nelson Park 58,500 21164420 13,500Trail Seal Coat - Oak Hill Park 13,500 21165220 40,000Trail Reconstruction - Shelard Park 40,000 21166408 98,500Playground Eqpt Repl - Wolfe Park 98,500 21166421 13,500Trail Seal Coat - Wolfe Park 13,500 21166425 16,000Trail Lights (LED) at Wolfe Park 16,000 21170302 450,000Aquila Park Fields 1-4 Lights and Poles Upgrade 450,000 21170507 60,000Playground Eqpt Repl - Bass Lake Park 60,000 21172106 17,500Parking Lot Seal Coat - Fern Hill Park 17,500 21174402 20,000Oak Hill Park Additional Shelter near Splash Pad 20,000 21174404 60,000Oak Hill Park Splash Pad Feature Replacement 60,000 21174422 50,000Oak Hill Park Central Shelter Replacement 50,000 21174908 50,000Playground Eqpt Repl - Rainbow Park 50,000 21175809 60,000Playground Eqpt Repl - Twin Lakes Park 60,000 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 20 Total20162017201820192020Department20212022202320242025 21175921 10,000Victoria Lake Landscaping 10,000 21176110 60,000Playground Eqpt Repl - Webster Park 60,000 21176424 10,000Wolfe Park Pergola Work 10,000 21179919 30,000Trail Sealcoat - Various Trails 30,000 21180301Court Resurface (BB) Aquila Park 7,5007,500 21180305Parking Lot Resurface - Aquila Park 35,00035,000 21180321Repaint Park Building - Aquila Park 7,0007,000 21180611Playground Eqpt Repl - Birchwood Park 62,50062,500 21180622Repaint Park Building - Birchwood Park 7,0007,000 21181023Repaint Park Building - Browndale Park 7,0007,000 21181124Repaint Park Building - Carpenter Park 6,0006,000 21181306Parking Lot Resurface - Cedar Knoll Park 8,0008,000 21181325Repaint Park Building - Cedar Knoll Park 2,0002,000 21181707Parking Lot Resurface - Creekside Park 8,0008,000 21181826Repaint Park Building - Dakota Park 4,0004,000 21182127Repaint Park Building - Fern Hill Park 5,0005,000 21183628Repaint Park Building - Louisiana Oaks Park 7,0007,000 21184208Parking Lot Resurface - Nelson Park 8,0008,000 21184229Repaint Park Building - Nelson Park 7,0007,000 21184309Parking Lot Resurface - Northside Park 35,00035,000 21184312Playground Eqpt Repl - Northside Park 62,50062,500 21184330Repaint Park Building - Northside Park 6,0006,000 21184431Repaint Park Building - Oak Hill Park 9,0009,000 21185102Court Resurface (BB) Roxbury Park 2,0002,000 21185113Playground Eqpt Repl - Roxbury Park 62,50062,500 21185203Court Resurface (BB) Shelard Park 2,0002,000 21185214Playground Eqpt Repl - Shelard Park 62,50062,500 21186210Parking Lot Resurface - Westwood Hills NC 35,00035,000 21186404Court Resurface (BB) Wolfe Park 3,0003,000 21190304 20,000Parking Lot Seal Coat - Aquila Park 20,000 21190613 10,000Trail Reconstruction - Birchwood Park 10,000 21190714 10,000Trail Reconstruction - Blackstone Park 10,000 21191002 85,000Browndale Park Hockey Rink Lights 85,000 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 21 Total20162017201820192020Department20212022202320242025 21191805 20,000Parking Lot Seal Coat - Dakota Park 20,000 21191815 75,000Trail Reconstruction - Dakota Park 75,000 21192116 45,000Trail Reconstruction - Fern Hill Park 45,000 21195406 65,000Playground Eqpt Repl - Sunshine Park 65,000 21195607 65,000Playground Eqpt Repl - Texa-Tonka Park 65,000 21196308 65,000Playground Eqpt Repl - Willow Park 65,000 21199901 20,000ADA Connections to Picnic Shelter/Playgrounds 20,000 21199917 30,000Trail Sealcoat - Various Trails 30,000 21200419 13,500Trail Seal Coat - Bass Lake 13,500 21200912 15,000Trail Reconstruction - Bronx Park 15,000 21203013 20,000Trail Reconstruction - Keystone Park 20,000 21204314 20,000Trail Reconstruction - Northside Park 20,000 21204502 65,000Playground Eqpt Repl - Oregon Park 65,000 21205403 65,000Playground Eqpt Repl - Sunset Park 65,000 21206204 100,000Playground Eqpt Repl - Westwood Hills NC 100,000 21209901 15,000ADA Compliance Picnic Tables 15,000 21210411Trail Reconstruction - Bass Lake Park 100,000100,000 21211712Playground Eqpt Repl - Parkview Park 60,00060,000 21213614Trail Reconstruction - Louisiana Oaks Park 65,00065,000 21213801Playground Eqpt Repl - Meadowbrook Manor Park 60,00060,000 21214002Playground Eqpt Repl - Minikahda Vista Park 60,00060,000 21214415Trail Reconstruction - Oak Hill Park 75,00075,000 21214803Playground Eqpt Repl - Pennsylvania Park 60,00060,000 21216416Trail Reconstruction - Wolfe Park 85,00085,000 21219912Trail Reconstruction - Franklin 45,00045,000 21219913Trail Reconstruction - Jordan 45,00045,000 21220902Playground Eqpt Repl - Bronx Park 65,00065,000 21221403Playground Eqpt Repl - Cedar Manor Park 60,00060,000 21221604Playground Eqpt Repl - Center Park 65,00065,000 21222401ADA Trail Compliance - Cedar Manor Park Trail 60,00060,000 21224109Trail Reconstruction - Minnehaha Creek 50,00050,000 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 22 Total20162017201820192020Department20212022202320242025 21230301Playground Eqpt Repl - Aquila Park 85,00085,000 21231102Playground Eqpt Repl - Carpenter Park 65,00065,000 21231503Playground Eqpt Repl - Cedarhurst Park 65,00065,000 21234611Trail Reconstruction - Otten Pond 30,00030,000 21235112Trail Reconstruction - Roxbury Park 10,00010,000 21235813Trail Reconstruction - Twin Lakes Park 10,00010,000 21240101Playground Eqpt Repl - Ainsworth Park 65,00065,000 21240130Repaint Park Building - Cedar Knoll Park 2,0002,000 21240306Repaint Park Building - Aquila Park 7,0007,000 21240317Trail Reconstruction - Aquila Park 75,00075,000 21240607Repaint Park Building - Birchwood Park 7,0007,000 21241002Playground Eqpt Repl - Browndale Park 65,00065,000 21241008Repaint Park Building - Browndale Park 7,0007,000 21241109Repaint Park Building - Carpenter Park 6,0006,000 21241118Trail Reconstruction - Carpenter Park 50,00050,000 21241811Repaint Park Building - Dakota Park 4,0004,000 21242112Repaint Park Building - Fern Hill Park 5,0005,000 21242719Trail Reconstruction - Jersey Park 30,00030,000 21243613Repaint Park Building - Louisiana Oaks Park 7,0007,000 21244214Repaint Park Building - Nelson Park 7,0007,000 21244315Repaint Park Building - Northside Park 6,0006,000 21244416Repaint Park Building - Oak Hill Park 9,0009,000 21253401Trail Reconstruction - Lamplighter Park 40,00040,000 21256202Trail Reconstruction - Westwood Hills NC 30,00030,000 21256403Wolfe Park Amphitheater Pavers 100,000100,000 21259903Trail Reconstruction 100,000100,000 21259904Playground Equipment Replacement 200,000200,000 21259905Park Shelter Replacement 150,000150,000 21259906Trail Lighting 100,000100,000 21994401 5,000 5,000Oak Hill Park Northern Lights (LED)10,000 21999902 20,000 20,000 20,000 20,000Playground Woodchips 200,00020,000 20,000 20,000 20,000 20,00020,000 21999903 100,000 100,000 60,000Minnehaha Creek Trail Repayment 360,000100,000 22164126 17,500Minnehaha Creek Revegitation 17,500 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 23 Total20162017201820192020Department20212022202320242025 22173203 25,000Knollwood Canoe Landing - Dredge and Rebuild 25,000 22193603 10,000Louisiana Canoe Landing Landscape 10,000 22206115 15,000Webster Park Community Garden 15,000 22999901 68,000 70,000 70,000 70,000Tree Replacement 698,00070,000 70,000 70,000 70,000 70,00070,000 23166203 6,000Westwood Hills NC Climbing Rock Phase II 6,000 23166222 16,000Westwood Hills NC Key Fob for Pavilion 16,000 23166223 60,000Westwood Hills NC Ravine Bridge Replacement 60,000 23166224 55,000Westwood Hills NC Storge Garage (30'x30') 55,000 23166228 14,000Westwood Hills NC Gate Camera Addition 14,000 23176222 10,000Westwood Hills NC North Staircase Overlook 10,000 23176223 20,000Westwood Hills NC-Prairie Deck Rebuild 20,000 23196218 50,000Westwood Hills NC Boardwalk Deck Repl, Phase 2 50,000 23196219 6,000Westwood Hills NC Brick House Furniture Repl 6,000 23196220 150,000Westwood Hills NC Interpretive Exhibit Repl 150,000 23206216 40,000Westwood Hills NC Staircase Rebuild 40,000 23216217Westwood Hills NC Furniture Repl 10,00010,000 23226210Westwood Hills NC Water Garden, Phase 2 45,00045,000 23236214Westwood Hills NC Trail Bench Replacement 15,00015,000 23246220Westwood Hills NC Boardwalk Deck Repl, Phase 3 50,00050,000 23256203Westwood Hills NC Boardwalk Deck Repl, Phase 1 100,000100,000 23256204Westwood Hills NC Waterfall 50,00050,000 23996227 15,000 30,500Westwood Hillls NC Master Revegetation Plan 68,00022,500 24145019 5,650,000Outdoor Refrigerated Ice Rink 5,650,000 24165011 30,000Rec Center Banquet Room Carpet & Floor Replacement 30,000 24165012 55,000Rec Center Fire Alarm System Upgrade 55,000 24165013 35,000Rec Center Gallery & Hallway Flooring 35,000 24165014 4,400,000Rec Center Arena Refrigeration Replacement 4,400,000 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 24 Total20162017201820192020Department20212022202320242025 24165015 110,000Rec Center Parking Lot Resurface 110,000 24165016 105,000Rec Center Rubber Floor Replacement - East & West 105,000 24165017 10,000Rec Center West Arena Press Area 10,000 24175013 15,000Rec Center Banquet Room/Gallery Furniture Repl 15,000 24175014 200,000Rec Center Pneumatics 200,000 24175016 20,000Rec Center Hot Water Heater Tank Replacement 20,000 24175017 50,000Rec Center Programming Office AC Replacement 50,000 24175018 17,000Rec Center Programming Office Carpet 17,000 24185015Rec Center Banquet & Gallery Remodel 50,00050,000 24185016Rec Center Door Replacement (Front & Arena) 120,000120,000 24185017Rec Center Landscaping 15,00015,000 24185018Rec Center Roof Rplc-East Arena/Front Office 500,000500,000 24185019Rec Center Upstairs Bthrm&Ctrng Kitchn Remodel 100,000100,000 24185020Rec Center West Arena Window Replacement 40,00040,000 24195010 15,000Rec Center Banquet Room & Gallery Chair Repl. 15,000 24195011 50,000Rec Center East Arena Locker Room Remodel 50,000 24195012 75,000Rec Center Front Office AC Replacement 75,000 24195013 30,000Rec Center East Arena Score Boards 30,000 24205005 300,000Rec Center Aquatic Park Amenity Replacement 300,000 24205006 50,000Rec Center Banquet Room PA Upgrade 50,000 24205008 200,000Rec Center Marquee 200,000 24205009 60,000Parking Lot Seal Coat - Rec Center 60,000 24205010 75,000Rec Center Aquatic Park Sun Shelter Repl 75,000 24205011 10,000Rec Center Rental Skate Replacement (Ph 1) 10,000 24215006Rec Center Arena Compressor Rebuild 15,00015,000 24215007Rec Center Arena Rubber Floor 250,000250,000 24215008Rec Center Dasher Board Repair/Replacement 12,00012,000 24215009Rec Center Landscaping 15,00015,000 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 25 Total20162017201820192020Department20212022202320242025 242150110Rec Center Rental Skate Replacement (Ph 2) 10,00010,000 24225006Rec Center East Arena Painting 60,00060,000 24225008Rec Center Scoreboard Replacement 32,50032,500 24235007Rec Center Arena Compressor Rebuild 15,00015,000 24235008Rec Center Arena Water Treatment Repl 75,00075,000 24235009Rec Center West Arena Painting 75,00075,000 24235010Rec Center West Arena Roof Replacement 500,000500,000 24245003Rec Center East Arena Dehumidification 400,000400,000 24245004Rec Center Generator Replacement 500,000500,000 24245005Rec Center Landscaping 20,00020,000 25160209 45,000Rec Center Aquatic Park Drp Slide & Dvg Brd Repl 45,000 25160210 20,000Rec Center Aquatic Park Umbrellas 20,000 25170211 200,000Rec Center Aquatic Park Filter Replacement 200,000 25170212 20,000Rec Center Aquatic Park Pump Rebuild 20,000 25170215 5,000Rec Center Concession Eqpt. Replacement 5,000 25200217 25,000Rec Center Aquatic Park Main Drain Replacement 25,000 25205007 5,000Rec Center Concession Eqpt. Replacement 5,000 25220205Rec Center Aquatic Park Locker Room Remodel 100,000100,000 25230204Rec Center Concession Eqpt. Replacement 5,0005,000 25990212 5,000Rec Center Aquatic Park Deck Furniture 20,0005,000 10,000 40161103 100,000Street - MSA Retaining Wall (Hwy 7 SFR) 100,000 50150001 1,800,000Meter Replacement 1,800,000 50164101 155,000Street Light Annual Replacement (2016)155,000 50164301 14,500Traffic Signal Annual Painting (2016)14,500 50174101 160,000Street Light Annual Replacement (2017)160,000 50174301 15,000Traffic Signal Annual Painting (2017)15,000 50184101Street Light Annual Replacement (2018)165,000165,000 50184301Traffic Signal Annual Painting (2018)15,50015,500 50194101 170,000Street Light Annual Replacement (2019)170,000 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 26 Total20162017201820192020Department20212022202320242025 50194301 16,000Traffic Signal Annual Painting (2019)16,000 50204101 175,000Street Light Annual Replacement (2020)175,000 50204301 16,500Traffic Signal Annual Painting (2020)16,500 50214101Street Light Annual Replacement (2021)180,000180,000 50214301Traffic Signal Annual Painting (2021)17,00017,000 50224101Street Light Annual Replacement (2022)185,000185,000 50224301Traffic Signal Annual Painting (2022)17,50017,500 50234101Street Light Annual Replacement (2023)190,000190,000 50234301Traffic Signal Annual Painting (2023)18,00018,000 50244101Street Light Annual Replacement (2024)195,000195,000 50244301Traffic Signal Annual Painting (2024)18,50018,500 50254101Street Light Annual Replacement (2025)200,000200,000 50254301Traffic Signal Annual Painting (2025)19,00019,000 53165001 30,000Water Well Rehab (SLP4)30,000 53165002 67,000Water Treatment Plant GAC Replacement (WTP1) 67,000 53165101 20,000Sanitary Sewer LS Maint (LS #11)20,000 53165301 21,000Storm Sewer LS Maint (LS #1)21,000 53165302 42,000Annual Catch Basin Repairs (2016)42,000 53175001 32,000Water Well Rehab (SLP8)32,000 53175002 68,000Water Treatment Plant GAC Replacement (WTP4) 68,000 53175003 51,000Water Well Rehab (SLP13)51,000 53175101 30,000Sanitary Sewer LS Maint (LS #13)30,000 53175102 15,000Sanitary Sewer LS Maint (LS #23)15,000 53175301 22,000Storm Sewer LS Maint (LS #7)22,000 53175302 44,000Annual Catch Basin Repairs (2017)44,000 53185001Water Well Rehab (SLP11)52,00052,000 53185101Sanitary Sewer LS Maint (LS #9)45,00045,000 53185301Storm Sewer LS Maint (LS #8)23,00023,000 53185302Annual Catch Basin Repairs (2018)46,00046,000 53195001 34,000Water Well Rehab (SLP14)34,000 53195002 71,000Water Treatment Plant GAC Replacement (WTP4) 71,000 53195003 71,000Water Treatment Plant GAC Replacement (WTP1) 71,000 53195101 45,000Sanitary Sewer LS Maint (LS #21)45,000 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 27 Total20162017201820192020Department20212022202320242025 16,544,7522,534,553 1,638,991 2,219,395 1,636,263 1,982,349Capital Replacement Fund 952,750 2,006,486 1,442,947 1,067,530 1,063,488 1,041,660104,166 104,166 104,166 104,166 104,166Hockey Association 104,166 104,166 104,166 104,166 104,166 100,000100,000Municipal State Aid 16,435,5005,651,500 1,690,000 1,498,000 1,051,000 1,183,500Park Improvement Fund 1,062,000 877,500 1,050,000 1,412,000 960,000 1,942,500169,500 175,000 180,500 186,000 191,500PW Operations Budget 197,000 202,500 208,000 213,500 219,000 1,443,0001,220,000 45,000 45,000 60,000 47,000Sanitary Sewer Utility 26,000 601,00063,000 66,000 69,000 73,000 50,000Stormwater Utility 52,000 54,000 56,000 58,000 60,000 1,512,000697,000 151,000 52,000 176,000Water Utility 74,000 75,000 77,000 76,000 134,000 39,620,41210,539,719 3,870,157 4,168,061 3,286,429 3,558,515Operations & Recreation Total 2,467,916 3,319,652 2,938,113 2,931,196 2,540,654 53195102 15,000Sanitary Sewer LS Maint (LS #4)15,000 53195301 25,000Storm Sewer LS Impr (Add SCADA to Stns 1/5/7/8/9) 25,000 53195302 48,000Annual Catch Basin Repairs (2019)48,000 53205101 47,000Sanitary Sewer LS Maint (LS #22)47,000 53205301 50,000Annual Catch Basin Repairs (2020)50,000 53215001Water Treatment Plant GAC Replacement (WTP4) 74,00074,000 53215100Sanitary Sewer LS Maint (LS #15)26,00026,000 53215301Annual Catch Basin Repairs (2021)52,00052,000 53225002Water Treatment Plant GAC Replacement (WTP1) 75,00075,000 53225301Annual Catch Basin Repairs (2022)54,00054,000 53235001Water Treatment Plant GAC Replacement (WTP4) 77,00077,000 53235301Annual Catch Basin Repairs (2023)56,00056,000 53245001Water Well Rehab (SLP10)38,00038,000 53245002Water Well Rehab (SLP4)38,00038,000 53245301Annual Catch Basin Repairs (2024)58,00058,000 53255001Water Well Rehab (SLP12)54,00054,000 53255002Water Treatment Plant GAC Replacement (WTP4) 80,00080,000 53255301Annual Catch Basin Repairs (2025)60,00060,000 E - XX01 2,534,553 1,638,991 1,636,263 1,982,349Annual Equipment Replacement Program 16,544,7522,219,395 952,750 2,006,486 1,067,530 1,063,4881,442,947 44,228,75216,085,553 3,765,991 4,063,895 3,182,263 3,454,349Operations & Recreation Total 2,363,750 3,215,486 2,833,947 2,827,030 2,436,488 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 28 Total20162017201820192020Department20212022202320242025 Police 68,40010,700 10,700 26,200 5,200 5,200Capital Replacement Fund 5,200 5,200 145,00070,000E-911 Funds 75,000 213,40010,700 10,700 26,200 75,200 5,200Police Total 5,200 5,200 75,000 PD - 1 10,700 10,700 5,200 5,200Laser/Radar and Message Board 68,40026,200 5,200 5,200 PD - 2 70,000911 Server Replacement 145,00075,000 213,40010,700 10,700 26,200 75,200 5,200Police Total 5,200 5,200 75,000 Technology 13125001 25,000IT: Security Audit, PCI Re-Assessment / Training 50,00025,000 13125002IT: Server Farm / UPS Enhancements 35,00035,000 13135001 25,000 25,000 25,000 25,000IT:LOGIS Hosted / Managed Services 250,00025,000 25,000 25,000 25,000 25,00025,000 13135003OR / Utilities: SCADA Solution 20,00010,000 10,000 13135004 20,000OR: AVL / GPS 40,00020,000 13145010Police: New CAD/RMS/Mobile Suite 550,000550,000 13145011 30,000OR: Banquet Rm Multiple Monitor / Projector 60,00030,000 13145012 10,000OR: Rec Center Gallery / Prog Office Monitors 20,00010,000 13155002 200,000 200,000 200,000 200,000IR: Fiber - Sidewalks / Hwy 100 / Citywide 2,000,000200,000 200,000 200,000 200,000 200,000200,000 13155004 5,000IT: Public Kiosks (City Hall, other sites)5,000 13155005 10,000 10,000 10,000 10,000Admin Serv: Agenda Management Software/Hardware 90,00010,000 10,000 10,000 10,00010,000 13155006 15,000 15,000 15,000 15,000Admin Serv:Agenda Doc Mgmt System/Microfilm Conver 150,00015,000 15,000 15,000 15,000 15,00015,000 13155007 17,500 17,500 17,500 17,500IR: MyStLouisPark CRM 175,00017,500 17,500 17,500 17,500 17,50017,500 13155008 100,000IR: City Hall Fl 2/3 Cabling/Chambers AV Upgrade 100,000 13155009 20,000IR: Portable Web Cams 40,00020,000 13155010 10,000Insp: Scanner 20,00010,000 13155012 3,000 12,000Insp / OR (2016): Field iPads 15,000 13155013 20,000IR: GIS Public / Application Server 20,000 13155014 2,000 2,000 2,000 2,000Admin Serv / Utilities: Infinity BI Service 20,0002,000 2,000 2,000 2,000 2,0002,000 13155016Eng: Survey GPS 15,00015,000 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 29 Total20162017201820192020Department20212022202320242025 13155017Police: ZuercherTech FBR Tablet Add- On Module 39,00013,000 13,000 13,000 13155018 43,750 3,100 3,100 3,100Admin: DocuSphere A/P Management 75,1503,100 6,600 3,100 3,100 3,1003,100 13155020 10,000 10,000 10,000 10,000Police: ZuercherTech Crime Analysis Add-On Module 100,00010,000 10,000 10,000 10,000 10,00010,000 13165001OR: RecTrac / WebTrac Replacement 75,00075,000 13165002 85,000IR: Study - Park Nicollet Fiber 85,000 13165003 135,000OR: Parks Facilities Fiber 135,000 13165004 100,000IR: New City Website Platform 100,000 13165006 15,000OR: Aquila Park Building Fiber 15,000 13165007 16,000 4,000 4,000 4,000Admin Serv: HR Time Management System 52,0004,000 4,000 4,000 4,000 4,0004,000 13165008 100,000Fire: Zuercher Integration of Fatpot Upgrade 100,000 13165009 200,000 20,000 20,000 20,000Insp: Electronic Plans Review Software 380,00020,000 20,000 20,000 20,000 20,00020,000 13175001 21,000Insp: Permits / E-Permits System Replacement 21,000 13175002 30,000OR: Rec Banquet Rm Smartboard/Video Conferencing 60,00030,000 13175003 125,000Fire: Station Alerting Upgrade 125,000 13185001Admin Serv: Financial / HR/Payroll App Replacement 205,000205,000 13185002Fire: Zuercher Mobile Solution 150,000150,000 13185003Fire: Additional Station Cameras 100,00050,000 50,000 13195001 203,000Admin Serv: Utility Billing App Replacement 203,000 13205001 50,000Fire: VHF Paging Upgrade 50,000 13215001OR: MSC Smartboard 15,00015,000 13995001 200,000 200,000 200,000 200,000IT: On-going Software Licenses, Mtce, Development 2,000,000200,000 200,000 200,000 200,000 200,000200,000 13995002 100,000 100,000 100,000 100,000IT: On-going Network Adds & Replacement 1,000,000100,000 100,000 100,000 100,000 100,000100,000 13995003 150,000 150,000 150,000 150,000IT: On-going Hardware/Telephone Adds & Replacement 1,500,000150,000 150,000 150,000 150,000 150,000150,000 13995004 600,000Police/Fire: 800 MHz Radio/Console Replacements 1,500,000900,000 13995006 100,000 125,000Police: Mobile Replacements 475,000125,000 125,000 13995007 75,000Fire / Police: Dispatch Voice Recorders 155,00080,000 13995008 8,000OR: Square Rigger Mobile Devices 16,0008,000 13995009 15,000 15,000 15,000 15,000IR / Communications: Reverse 911 - ParkAlert 150,00015,000 15,000 15,000 15,000 15,00015,000 13995010Eng: Engineering Total Station 25,00025,000 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 30 Total20162017201820192020Department20212022202320242025 13995011 46,998 46,998 46,998 55,001OR: Asset Mgmt Software 518,00346,998 110,004 55,002 55,00255,002 13995012Fire: Fire Department Mobiles Replacement 30,00010,000 10,000 10,000 13995013 10,000 15,000Fire: EOC Computer / Phone Equipment Replacement 55,00015,000 15,000 13995014Admin Serv: Council Tablets 55,00015,000 20,000 20,000 13995015 200,000 200,000 200,000 200,000IT: Tablet / Smartphone Hardware and Services 2,000,000200,000 200,000 200,000 200,000 200,000200,000 13995016Facilities: City Hall Cameras 54,00027,000 27,000 13995017 16,000 16,000 16,000 16,000Admin Serv - Insight Budgeting Annual Maintenance 160,00016,000 16,000 16,000 16,000 16,00016,000 13995019OR: Nature Center Surveillance Cameras 110,00055,000 55,000 13995020 25,000 25,000 25,000 25,000IT: Network Switches 225,00025,000 25,000 25,000 25,00025,000 13995021Police: Jail Cameras 46,00023,000 23,000 13995022Police: Exterior Cameras 24,00012,000 12,000 13995023Police: Booking and Intox Room Cameras (2) 13,0006,500 6,500 13995024Police: Dispatch Camera Viewing Workstations 110,00055,000 55,000 13995025 35,000OR: Rec Center / Outdoor Rink Cameras 160,00045,000 35,000 45,000 13995026 16,000 16,000 16,000 16,000IT: Surveillance Camera Maintenance 160,00016,000 16,000 16,000 16,000 16,00016,000 13995027 10,000OR: Point of Sale Equipment Replacements 20,00010,000 13995029 7,500 7,500IT: Plotter Replacements 37,5007,500 7,5007,500 13995030OR: Rec Center PA / Sound 50,00050,000 13995031 45,000OR: MSC Cameras 90,00045,000 13995034 225,000IT: Server/Backup/UPS/DR/Storage Infrastructure 450,000225,000 13995035 100,000IT: Telephone Handset / Handless Upgrades 200,000100,000 13995036 10,000Eng: Large Scanner / Plotter / Copier 20,00010,000 13995037 100,000Fire: Stations Media Package 200,000100,000 13995039 8,000Admin Serv: UB Meter Reading Handhelds (if no AMR) 8,000 13995040 6,500Police: Interview Room Cameras 13,0006,500 13995041 10,000 10,000IT: Wireless Hotspots 50,00010,000 10,00010,000 13995042 21,325 21,325 21,325 21,325Police: Zuercher CAD Module Annual Fees 213,25021,325 21,325 21,325 21,325 21,32521,325 13995043 20,000 100,000Police: Comm Van Upgrades / EOC Media Package 240,000120,000 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 31 Total20162017201820192020Department20212022202320242025 10,934,3181,412,916 1,105,766 1,214,266 1,088,766 1,046,934Capital Replacement Fund 949,268 919,934 972,434 1,034,934 1,189,100 518,25036,325 111,325 36,325 36,325 36,325E-911 Funds 36,325 116,325 36,325 36,325 36,325 275,000185,000 45,000EDA Development Fund 45,000 1,000,000100,000 100,000 100,000 100,000 100,000G.O. Bonds 100,000 100,000 100,000 100,000 100,000 135,000135,000Park Improvement Fund 3,302,000720,000 135,000 279,500 156,500 82,000Police & Fire Pension 33,000 150,000 106,500 1,489,500 150,000 299,33816,333 16,333 16,333 31,333 64,001Sanitary Sewer Utility 42,335 19,001 19,001 29,001 45,667 110,00010,000 45,000Solid Waste Utility 10,000 45,000 126,67066766766710,667 45,667Stormwater Utility 5,667 667 667 15,667 45,667 900,000100,000 100,000 100,000 100,000Unfunded 100,000 100,000 100,000 100,000 100,000 314,32716,332 16,332 26,332 26,332 63,999Water Utility 42,334 19,000 29,000 29,000 45,666 17,914,9032,622,573 1,585,423 1,773,423 1,559,923 1,628,926Technology Total 1,308,929 1,424,927 1,363,927 2,844,427 1,802,425 61990001 22,000Police-LPR replacement 22,000 17,914,9032,622,573 1,585,423 1,773,423 1,559,923 1,628,926Technology Total 1,308,929 1,424,927 1,363,927 2,844,427 1,802,425 28,804,858 19,983,528 24,087,164 25,486,283 18,694,171Grand Total 194,521,76216,701,118 12,789,363 12,913,907 23,410,707 11,650,663 Thursday, August 20, 2015 Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 32 CITY OF ST. LOUIS PARK ESTIMATED QUARTERLY UTILITY BILL ACTUAL 2015 AND PROPOSED 2016 August 24, 2015 Household Size 4 Units per quarter 30 Solid Waste Service 60-gallon Meter size 3/4 inch Actual Proposed Dollar Percent Service Type 2015 2016 Change Change Notes Water Per unit rate - Tier 1 1.55$ 1.66$ 0.11$ 7.10% Service charge 19.91$ 22.35$ 2.44$ 12.26% State testing fee 1.59$ 1.59$ -$ 0.00% Consumption 46.50$ 49.80$ 3.30$ 7.10% Sewer Service charge 14.52$ 15.54$ 1.02$ 7.02% Per unit 2.84$ 3.04$ 0.20$ 7.04% Consumption 85.20$ 91.20$ 6.00$ 7.04% Storm Drainage Service charge 19.36$ 21.30$ 1.94$ 10.02% Bassett Creek Fee*1.93$ 1.93$ -$ 0.00%Bassett Creek fee Solid Waste (includes tax)68.05$ 67.50$ (0.55)$ -0.81% Total Bill without Bassett*255.13$ 269.28$ 14.15$ 5.55%Not including BCWMC Increase per quarter (dollars)14.15$ Increase per year (dollars)56.60$ * Since not all property owners would be charged this fee, it is not included in the dollar or percentage change in total bill. Study Session Meeting of August 24, 2015 (Item No. 2) Title: 2016 Budget, CIP and Utility Rates Page 33 Meeting: Study Session Meeting Date: August 24, 2015 Discussion Item: 3 EXECUTIVE SUMMARY TITLE: Mayor, City Council and Economic Development Authority Compensation RECOMMENDED ACTION: Council is asked to review the information in this report and inform staff if any changes to the compensation levels for Mayor, City Council and Economic Development Authority members are recommended. POLICY CONSIDERATION: • Does Council wish to change the compensation of Mayor, Council or EDA members? • Does Council want to add iPad ownership as part of the compensation package? SUMMARY: Minnesota Statute 415.11 states that Council can set their own salaries in such amount that they deem reasonable. Any increases to salaries must take effect after the next municipal election but any decreases to salaries can take effect anytime. FINANCIAL OR BUDGET CONSIDERATION: Funds for Mayor and Council salaries are in the general fund. Funds for EDA Commissioner and President salaries are from the EDA (non-general fund). VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Discussion Prepared by: Ali Timpone, HR Coordinator Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Study Session Meeting of August 24, 2015 (Item No.3) Page 2 Title: Mayor, City Council and Economic Development Authority Compensation DISCUSSION BACKGROUND: Minnesota Statute 415.11 states that Council can set their own salaries in such amount that they deem reasonable. Any increases to salaries must take effect after the next municipal election but any decreases to salaries can take effect anytime. A history of Mayor, Council and EDA salaries: EDA Year Council Mayor EDA President 2014 – Present $6,807 $11,796 $4,385 $4,385 2010-2013 $6,807 $11,796 $4,299 $4,299 2008-09 $7,165 $12,417 $4,299 $4,299 2006-07 $7,165 $10,985 $4,299 $5,731 2002-05 $6,365 $ 9,760 $3,819 $5,092 2000-01 $6,000 $ 9,000 $3,600 $4,800 1985-99 $4,800 $ 7,200 $2,400 $3,600 Other metro area suburbs with a population between 25,000 – 90,000 have salaries as shown in the table below: City Mayor Salary Council Salary Notes Additional Pay Notes Andover $9,500.00 $7,500.00 $1 per meeting - avg 12 mtgs/year Apple Valley $11,784.00 $8,436.00 $0 Receives benefits contribution same as FT EES; pay effective January 1, 2016 Blaine $14,313.60 $10,500.00 $0 Bloomington $26,400.00 $12,396.00 $0 Brooklyn Center $11,846.00 $9,070.00 $0 Brooklyn Park $17,100.00 $11,400.00 $0 Burnsville $12,000.00 $8,400.00 $0 Receives benefits contribution same as FT EES Coon Rapids $14,000.00 $12,250.00 at large $0 Coon Rapids $10,500.00 wards $0 Cottage Grove $9,216.00 $6,780.00 $0 Eagan $13,625.00 $10,000.00 $0 Receives benefits contribution same as FT EES Eden Prairie $13,500.00 $10,740.00 $0 Edina $13,500.00 $10,740.00 $0 Auto increases every odd year Fridley $10,688.53 $8,779.42 at large $0 Receives benefits contribution same as FT EES Fridley $7,761.85 wards $0 Receives benefits contribution same as FT EES Inver Grove Heights $11,400.00 $8,200.00 $0 Lakeville $9,996.00 $8,664.00 $25 per meeting - avg 2 mtgs/year Maple Grove $15,500.00 $13,500.00 $0 Effective January 1, 2016 Maplewood $12,855.00 $11,314.00 $0 Minnetonka $12,000.00 $9,000.00 $0 Plymouth $14,478.96 $10,484.04 $0 Health & Dental benefits made available on a pre- tax basis in an amount equal to the entire cost Richfield $10,379.00 $10,379.00 $0 Study Session Meeting of August 24, 2015 (Item No.3) Page 3 Title: Mayor, City Council and Economic Development Authority Compensation Roseville $9,300.00 $7,020.00 $0 Shakopee $15,000.00 $7,500.00 $0 Shoreview $9,348.00 $6,936.00 $0 Woodbury $13,344.00 $9,660.00 $0 Average $12,961.42 $9,535.01 Note: Average does not include value of health insurance contribution. SLP $11,796.00 $6,807.00 $4,385 Annual EDA pay, applies to mayor and all council SLP w/ EDA $16,181.00 $11,192.00 iPad Discussion: Council has asked to discuss keeping their City-issued iPads as part of their compensation package. This would need to be included in a resolution as part of the approved compensation package. No other city in our survey market provides equipment as a part of compensation; this would be unique to St. Louis Park. NEXT STEPS: • Council will notify staff if there is to be a change in compensation, including adding iPads as part of the compensation package. • If there is to be a change to Mayor and/or Council salaries, a public hearing along with 1st and 2nd readings are required to pass an ordinance to make the change effective. • If there is to be a change to EDA Commissioner and/or EDA President salaries, a resolution is required to make the change effective. Meeting: Study Session Meeting Date: August 24, 2015 Written Report: 4 EXECUTIVE SUMMARY TITLE: Cable TV and Franchise Fee Trends RECOMMENDED ACTION: None at this time. However, several actions could emerge in the future as a result of Next Steps discussed below. POLICY CONSIDERATION: What efforts should the City of St. Louis Park undertake in order to understand and respond to emerging offerings, technologies, and markets in the Cable TV and related fields? What can the City of St. Louis Park do to address questions around sufficient franchise fees to continue to meet community needs around Cable TV services? SUMMARY: Cable TV franchise fees received from Comcast continue to increase; however, this trend may not continue much longer based on emerging technology and service options. FINANCIAL OR BUDGET CONSIDERATION: On-going health and stability of the Cable TV Fund, which relies exclusively on franchise fees to support programming and customer service, as well as much internal staff A/V support. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: Discussion Prepared by: Reg Dunlap, Civic TV Coordinator Reviewed by: Jacque Larson, Communications & Marketing Manager Through: Clint Pires, Chief Information Officer Approved by: Tom Harmening, City Manager Study Session Meeting of August 24, 2015 (Item No. 4) Page 2 Title: Cable TV and Franchise Fee Trends DISCUSSION BACKGROUND: Council requested an update on the status and trend of Cable TV franchise fee revenues as well as Cable TV itself. While trends may tell us something about what to expect in the future, the entertainment industry is one where things can change quickly, especially when disruptive technologies are part of the mix. Tracking and responding appropriately to changes is important, especially as St. Louis Park’s franchise agreement with Comcast expires in January of 2021. The 2015 second quarter franchise fee payment was a record high, following a record high first quarter payment. Comcast continues to increase cable television revenue in St. Louis Park, which means City franchise fees are still going up. Here’s a snapshot of what has occurred since 2005. Comcast Franchise Fees last 10 years, rounded to the nearest dollar Year Quarter 1 Quarter 2 Total for the year 2005 $104,614 $108,068 $421,959 2006 $116,167 $119,791 $477,344 2007 $124,992 $131,365 $522,881 2008 $141,053 $146,424 $585,800 2009 $145,759 $149,819 $581,928 2010 $141,083 $145,298 $581,473 2011 $144,115 $151,542 $594,662 2012 $150,020 $157,454 $618,375 2013 $156,533 $161,296 $642,141 2014 $160,475 $164,255 $650,354 2015 $161,897 $166,522 $328,419 YTD $659,000 projection* * Every year since 2010, second half franchise fees have been slightly higher than first half. During the recession, franchise fees dropped in 2009 and 2010 but have increased every year since 2011. The rate of increase slowed last year and will likely be about the same in 2015. Staff has been conservatively estimating franchise fees since 2010, but Comcast has managed to grow revenues despite cord-cutting, over-the-top (OTT) services, and the trend in younger consumers using smart phones and tablets to watch video instead of standard cable TV. Staff believes that franchise fees will probably peak this year and that it’s appropriate to hold conservative expectations for franchise fee revenues in the Cable TV fund going forward. Why has Comcast been so successful at bucking heavily publicized trends? Large cable companies like Comcast and Time Warner invest heavily in new technologies and position products to add value to the cable subscription rather than steal customers from their own services. For popular sporting events like the World Cup or the Olympics, cable customers can watch any of numerous live video streams for free if they are a cable customer. Customers with a smart phone or tablet can watch live streams from numerous cable channels via a Comcast app, play videos or display pictures from their mobile devices to a Comcast-connected TV, or find a free Xfinity wi-fi hot spot via another free app. The many useful apps add much more value to the cable customer with a smart phone. Study Session Meeting of August 24, 2015 (Item No. 4) Page 3 Title: Cable TV and Franchise Fee Trends Comcast’s cable TV business has slowly increased its revenue due to increased prices and ancillary fees, while their Internet business has been growing rapidly and this year passed cable in total customers. However, per Federal rules, Internet based revenues are excluded from the base revenues used to calculate City franchise fees. One example of Comcast introducing a new Internet service that may affect their cable TV service: by early 2016, Comcast Internet customers will be able to stream HBO and local broadcast channels for about the same price as Basic Cable TV ($15 per month). The tag line is, “for those who watch more TV on the screen on their lap than the screen on the wall.” The sketchy details are here: http://corporate.comcast.com/comcast-voices/a-new-streaming-tv-service-from- comcast#.VaMfon61qlo.twitter Comcast has clearly had success at maximizing revenues, even in challenging times. Here’s a look at a few of the pressures on Comcast revenues in St. Louis Park. Comcast price bundling Customers often call City staff to complain about Cable TV prices and ask about cheaper alternatives and competition. Staff advises contacting Comcast to request a discount for a specified term or to consider bundling services for a discount. Usually, customers are able to negotiate one of those options. When the City conducted a franchise fee audit in 2014, the auditor reported that far fewer St. Louis Park customers were grouped in bundles than in other cities. This means that aggressive marketing by Comcast, motivated by competition with CenturyLink, could move more customers to those discounts. Over-the-top services more widely available and cord-cutting Netflix, Roku, HBO, Showtime, Hulu and Amazon Prime are all examples of services that sell programming directly to customers via the internet, referred to as over-the-top services or OTT. Cord cutting refers to customers discontinuing Cable TV service but keeping their internet service. Many articles in the popular press advocate cord-cutting and adding an OTT service as a way to save money, but at this point it has not affected revenues of cable companies. Some of these OTT services, such as HBO and Showtime, pay fees to the cable companies. This will be considered cable TV revenue when the City does the next franchise fee compliance review in three years. A wide range of opinions exist on how long it will take the traditional cable bundle (hundreds of cable channels, supported by ad revenue) to break apart. Some have predicted massive defections to OTT for several years, but so far this hasn’t happened. In a July 27, 2015, article on www.cnbc.com, Walt Disney chief Bob Iger said, “…he sees ESPN as a media property that could be eventually sold directly to consumers like Time Warner's HBO, but not in the next five years.” Disney owns ESPN, and many analysts credit live sports as one of the compelling reasons customers continue to subscribe to Cable TV. The full article is available at: http://www.cnbc.com/2015/07/27/disney-ceo-iger-espn-could-one-day-be-sold-direct.html Study Session Meeting of August 24, 2015 (Item No. 4) Page 4 Title: Cable TV and Franchise Fee Trends Nielsen recently suggested that cable subscribers who also have an over-the-top subscription video-on-demand (SVOD) service are actually more likely to drop the SVOD than they are cable. In fact, 93% of homes who had both services were more likely to keep the cable and instead drop broadband or SVOD offerings. “Cable may have a little more staying power than it’s actually being given credit for recently,” said Glenn Enoch, Nielsen’s senior vice president of audience insights. Expected impact if CenturyLink enters the market In communities with a choice of Cable TV providers, the competing companies commonly discount prices and lock customers into contracts of varying lengths. If the number of total cable customers stays the same in the city, the discounts for customers means franchise fees could decrease. Customers would receive two benefits: a choice between two providers, and service discounts for a specified term. However, anecdotal reports suggest that a new entrant to the market will NOT lower franchise fees. Staff posed this question to the National Association of Telecommunications Officers and Advisors (NATOA) email list, and all five responses said franchise fees increased in their cities when the telephone company began offering cable TV services. It is suspected that heavy advertising of the new entrant often lures customers from satellite TV as well as from the incumbent cable operator. Also, both cable operators look to build revenues by introducing new ancillary fees. PRESENT CONSIDERATIONS: Cable TV franchise fee revenues continue to be generated at significant rates. Comcast continues to be successful in revenue generation. Although their success at Internet sales does not directly affect franchise fees, there may be an indirect effect from customers who do bundle with franchise-eligible services. Contrary to a significant imminent demise of Cable TV service, we are currently witnessing the first ever addition of a second Cable TV provider in St. Louis Park. At the same time, it is also true that alternative forms of receiving video entertainment are emerging, especially with continued growth in Internet-based services. We expect the environment in the Cable TV entertainment and other related industries to remain turbulent as innovation continues and disruptive technologies are introduced. We also expect many technologies to co-exist for periods as older ones yield to ones that consumers prefer. They will likely continue to overlap, with different technologies preferred by different consumer groups. Video entertainment services, in whatever evolving forms delivered, are expected to remain in strong demand for the foreseeable future. Comcast’s revenue: Fourth Quarter, 2014 Traditional cable $5.5 billion Internet $3.3 billion Telephone $1.3 billion Advertising $.7 billion Other $.5 billion Total $11.3 billion Study Session Meeting of August 24, 2015 (Item No. 4) Page 5 Title: Cable TV and Franchise Fee Trends NEXT STEPS: There are several significant steps that staff recommends St. Louis Park either continue or start regarding the future of Cable TV, franchise fees, and related issues: • Monitor, report, and consider appropriate responses to industry and technology trends in the Cable TV and related industries. • Create a regulatory environment that encourages provider alternatives in the Cable TV and video entertainment services market. In other words, diversify so that options for service exist and we avoid an “all eggs in one basket” approach. • Specifically, work diligently to successfully complete an acceptable franchise agreement with CenturyLink, per the current process. • Minimize any unnecessary barriers to entry, while encouraging top level customer and product service offerings by Cable TV providers. • Create a regulatory environment that encourages investment in high speed wired (e.g., fiber optic) and wireless infrastructure that can best deliver Cable TV and other services. • Make determinations on what kinds of future Cable TV and related services will be in demand, and will be developed by the industry based on that demand. • Start early on preparations for the next Cable TV franchise negotiations, ensuring that both customer and community needs are met, and that sufficient franchise fees are generated to support desired services and rights-of-way use. Since the current franchise with Comcast expires in January 2021, it is currently anticipated that negotiations will ensue starting sometime in 2018. • Implement the City Council Priorities and Goals (including action plans in St. Louis Park being a Technology Connected Community) to enable best use of all evolving technologies, including Cable TV, and keep St. Louis Park vibrant, attractive, and competitive. Meeting: Study Session Meeting Date: August 24, 2015 Written Report: 5 EXECUTIVE SUMMARY TITLE: July 2015 Monthly Financial Report RECOMMENDED ACTION: No action required at this time. POLICY CONSIDERATION: None at this time. SUMMARY: The Monthly Financial Report provides a summary of General Fund revenues and departmental expenditures and a comparison of budget to actual throughout the year. FINANCIAL OR BUDGET CONSIDERATION: Actual expenditures should generally run at about 58% of the annual budget in July. General Fund expenditures are under budget through July at approximately 55% of the adopted budget. Revenues are harder to measure in this same way due to the timing of when they are received, examples of which include property taxes and State aid payments (Police & Fire Aid, DOT/Highway User Tax, PERA Aid, etc.). A few brief comments on specific variances are noted below. Revenues: License and permit revenues continue to run well ahead of budget at 83%. As in previous years, this is due in part that 98% or $790,000 of the 2015 business and liquor license payments have been received. Permit revenues are at 78.6% of the annual budget through July. Expenditures: Administration expenditures are at 60% of budget due to overages in legal and other contractual services. Accounting has a minor expenditure variance of less than 1% due to the contractual payment for audit services. Human Resources is showing a variance of about 5% due to Health in the Park expenditures, however, because this program is offset by revenue, there is no net effect to the overall budget. Organized Recreation currently has a variance of approximately 10% due in part to normal seasonal expenditures and also because the full Community Education contribution of $187,400 was paid to the school district in June. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Summary of Revenues & Expenditures Prepared by: Darla Monson, Senior Accountant Reviewed by: Brian A. Swanson, Controller Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Summary of Revenues & Expenditures - General Fund As of July 31, 2015 20152015201320132014201420152015 Balance YTD Budget BudgetAudited BudgetAudited Budget July YTD Remaining to Actual %General Fund Revenues: General Property Taxes20,657,724$ 21,987,968$ 21,157,724$ 21,176,542$ 22,364,509$ 11,664,860$ 10,699,649$ 52.16% Licenses and Permits2,481,603 3,069,088 2,691,518 3,413,682 3,248,158 2,710,277 537,881 83.44% Fines & Forfeits335,150 311,882 320,150 369,545 320,200 147,617 172,583 46.10% Intergovernmental1,300,191 2,031,355 1,282,777 1,423,642 1,292,277 648,342 643,935 50.17% Charges for Services1,837,976 1,779,259 1,857,718 1,852,274 1,907,292 1,091,093 816,199 57.21% Miscellaneous Revenue1,092,381 1,067,210 1,112,369 1,302,160 1,196,018 638,456 557,562 53.38% Transfers In1,816,563 1,805,223 1,837,416 1,827,564 1,851,759 1,071,443 780,316 57.86% Investment Earnings150,000 14,180 150,000 119,831 140,000 - 140,000 0.00% Other Income36,650 10,756 17,950 13,306 17,900 5,631 12,269 31.46% Use of Fund Balance286,325 - 286,325 0.00%Total General Fund Revenues29,708,238$ 32,076,921$ 30,427,622$ 31,498,546$ 32,624,438$ 17,977,719$ 14,646,719$ 55.11%General Fund Expenditures: General Government: Administration877,099$ 890,883$ 939,391$ 980,087$ 979,183$ 590,895$ 388,288$ 60.35% Accounting827,320 819,458 876,216 873,987 912,685 536,767 375,918 58.81% Assessing543,855 543,202 559,749 560,979 602,299 346,732 255,567 57.57% Human Resources678,988 731,634 693,598 788,823 805,929 505,438 300,491 62.71% Community Development1,094,517 1,090,213 1,151,467 1,118,444 1,245,613 706,518 539,095 56.72% Facilities Maintenance1,074,920 1,058,127 1,053,715 1,039,699 1,094,836 566,763 528,073 51.77% Information Resources1,770,877 1,597,993 1,456,979 1,406,187 1,468,552 773,424 695,128 52.67% Communications & Marketing201,322 170,013 566,801 562,063 635,150 331,054 304,096 52.12% Community Outreach8,185 (22,450) 8,185 6,680 24,677 14,395 10,282 58.33% Engineering303,258 296,383 506,996 223,491 492,838 188,190 304,648 38.18%Total General Government7,380,341$ 7,175,456$ 7,813,097$ 7,560,440$ 8,261,762$ 4,560,174$ 3,701,588$ 55.20% Public Safety: Police7,443,637$ 7,225,579$ 7,571,315$ 7,769,592$ 8,511,557$ 4,806,664$ 3,704,893$ 56.47% Fire Protection3,330,263 3,246,162 3,458,161 3,535,716 3,722,396 2,139,477 1,582,919 57.48% Inspectional Services1,928,446 1,932,021 2,006,200 1,867,618 2,139,325 1,128,356 1,010,969 52.74%Total Public Safety12,702,346$ 12,403,762$ 13,035,676$ 13,172,927$ 14,373,278$ 8,074,497$ 6,298,781$ 56.18% Operations & Recreation: Public Works Administration393,054$ 288,207$ 222,994$ 236,304$ 232,437$ 116,722$ 115,715$ 50.22% Public Works Operations2,698,870 2,720,563 2,625,171 2,571,496 2,763,735 1,380,990 1,382,745 49.97% Organized Recreation1,280,117 1,256,678 1,290,038 1,277,046 1,304,470 897,819 406,651 68.83% Recreation Center1,449,930 1,501,627 1,543,881 1,561,224 1,591,115 909,305 681,810 57.15% Park Maintenance1,431,825 1,424,139 1,445,813 1,412,612 1,550,033 893,845 656,188 57.67% Westwood520,554 503,309 531,853 508,576 564,055 316,334 247,721 56.08% Environment430,876 434,297 433,750 379,193 472,049 167,949 304,100 35.58% Vehicle Maintenance1,240,325 1,268,559 1,285,489 1,323,358 1,333,520 666,489 667,031 49.98%Total Operations & Recreation9,445,551$ 9,397,379$ 9,378,989$ 9,269,808$ 9,811,414$ 5,349,453$ 4,461,961$ 54.52% Non-Departmental: General -$ 256,627$ 4,000$ 7,562$ -$ 40,798$ (40,798)$ 0.00% Transfers Out- 60,000 - 1,050,000 - - - 0.00% Tax Court Petitions180,000 53,345 195,860 13,834 177,984 - 177,984 0.00%Total Non-Departmental180,000$ 369,972$ 199,860$ 1,071,396$ 177,984$ 40,798$ 137,186$ 22.92%Total General Fund Expenditures29,708,238$ 29,346,569$ 30,427,622$ 31,074,572$ 32,624,438$ 18,024,923$ 14,599,515$ 55.25%Study Session Meeting of August 24, 2015 (Item No. 5) Title: July 2015 Monthly Financial ReportPage 2 Meeting: Study Session Meeting Date: August 24, 2015 Written Report: 6 EXECUTIVE SUMMARY TITLE: 2015 Semi-Annual Housing Programs Activity Report RECOMMENDED ACTION: The purpose of this report is to update Council on housing programs and activity. This report is informational and no action is required. POLICY CONSIDERATION: None at this time. SUMMARY: The Annual Housing Programs Report including the Housing Matrix has been presented to Council since 2005. The Executive Summary provides a quick review of the detailed report and the report provides historical trends, program descriptions, affordable housing and additional information on housing programs in St. Louis Park. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and diverse housing stock. SUPPORTING DOCUMENTS: 2015 Semi-Annual Housing Programs Activity Report Prepared by: Marney Olson, Assistant Housing Supervisor Reviewed by: Michele Schnitker, Housing Supervisor Approved by: Tom Harmening, City Manager 2015 Semi - Annual Housing Programs Activity Report EXECUTIVE SUMMARY The purpose of this report is to apprise City policy makers of housing program activity during the first half of 2015. The report provides historical trends, program descriptions, and additional information. Below are the key points with details following this summary. 1. Remodeling Activity a. Housing rehab projects (general remodeling) in the first half of 2015 is generally on pace with previous activity. Most projects were financed without using city loans. b. The city’s Architect Design Services and Remodeling Advisor Services continue to be great tools for residents; however, the usage is slightly down over the first half of 2014. c. 56 home energy visits were conducted through the Home Energy Squad Enhanced program. Staff is working with CEE and Communications to continue to promote this valuable program. d. Major remodeling projects and home additions are on pace with previous years. e. Discount Loan use the first half of 2015 is relatively low; however, we are on pace with the first half of 2014. f. NEW: The new Construction Management Plan program has been in place since November 2014. During the first half of 2015 the following neighborhood notification letters were sent regarding CMP projects: 16 major additions, 12 demo/rebuilds, 1 demo only and 2 new construction (on parcels that did not previously have a home). A map is included in the report showing the location of these projects. 2. Affordable Home Ownership and Public Housing Update a. Two homebuyers used the Live Where You Work program so far in 2015. Nineteen homebuyers have used the program since it began in spring 2009. b. The SLP Housing Authority affordable rental housing and rental assistance programs continue to have high occupancy and long waiting lists. Over 500 households received rental assistance in the first half of 2015. c. The SLP Housing Authority has continued administering the new Stable HOME rental assistance program for Suburban Hennepin County which provides housing assistance to homeless or previously homeless individuals and families in Suburban Hennepin County. 3. Housing Matrix a. Owner occupied (homestead) properties now comprise 53% of the housing market with rental (non-homestead) at 47%. This is consistent with 2014 and the single family home ownership rate continues to be high at 90%. b. No new multi-family units were added during the first half of 2015; however, several new projects are in the planning stages including Shorehan, Arlington Row, Oppidan, Bridgewater, and Central Park West Phase 1. c. NEW: The Housing Development Project List is included in the report showing residential projects since 2003. 4. Foreclosures a. The 2015 foreclosure rate remains low with only 27 residential foreclosures the first half of 2015. Study Session Meeting of August 24, 2015 (Item No. 6) Title: 2015 Semi-Annual Housing Programs Activity Report Page 2 1. REMODELING ACTIVITY Residential permitted activity measures remodeling and maintenance activity; this section shows historical trends of remodeling activity. Permit Trends • “Alteration Residential” or General Remodeling The chart below shows the trend line of general remodeling activity over time. This work includes projects with permit valuations less than $37,500 (the average value per job for 2015 is approximately $7,090) and includes such items as: o remodeling of bathrooms and kitchens; o finishing of basement and attic spaces; o conversion of existing spaces; o window and door replacements, insulation; and o drain tile, step, and foundation work. The trend line below reflects residents’ willingness to preserve and update housing, the impact of the city’s proactive housing improvement assistance, and the ongoing needs of older housing stock. The first half of 2015 is off to a strong start with 524 permits. Chart 1: Trend of Maintenance & Minor Remodeling Permits Since 2005 • Roofing and Siding Activity Reroofing and residing permits are tracked separately. This chart illustrates the impact of storm damage in 2008-9 and again in 2011. Almost 60% of the homes in the city had roofs replaced between 2008 and 2011. It is likely the number of reroofs will remain relatively low for the next decade or so. 25 houses were resided and 48 roof replacements were permitted in the first half of 2015. 517 785 797 971 869 1129 1011 1091 1084 524 0 500 1000 1500 2006 2007 2008 2009 2010 2011 2012 2013 2014 First half 2015Number of Permits Issued Year Maintenance & Minor Remodeling Permits Alteration Residential (Minor) Study Session Meeting of August 24, 2015 (Item No. 6) Title: 2015 Semi-Annual Housing Programs Activity Report Page 3 Chart 2: Reroofing and Residing Permits Since 2005 *Spike in reroofing due to 2008 storms. • Additions and Major Remodeling The number of Major Remodeling permits (valued at more than $37,500) is on pace with previous years. The increase in additions beginning in 2012 may be an indication that homeowners think that the housing market is recovering and recent homebuyers who purchased at the low end of the market are now investing in their homes. The average permit valuation for additions during the first half of 2015 is $112,754 and the average for major remodels is $66,671. There were 38 major remodels and 31 additions during the first half of 2015. Chart 3: Number of Addition and Major Remodeling Permits Since 2005 • Permit Valuation, 2005 – first half of 2015 The valuation for single family remodeling activity in the first half of 2015 is on track for another good year and currently on pace to exceed 2012 and 2013. The following chart 202 216 355 845 201 761 140 161 131 48 85 66 84 573 332 117 117 73 83 70 25 0 500 1000 1500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 First half 2015Number of Permits Issued Year Reroofing and Residing Permits Reroof Reside 55 86 102 89 55 40 48 71 67 73 31 45 50 50 46 50 53 46 44 53 69 38 0 40 80 120 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 First half 2015Number of Permits Issued Year Addition and Major Remodel Permit Activity Addition Residential Major Remodels 4828 Study Session Meeting of August 24, 2015 (Item No. 6) Title: 2015 Semi-Annual Housing Programs Activity Report Page 4 shows historical remodeling permit valuation for additions, major remodels, remodeling and maintenance, garages/decks, reroofs, and siding. Additional permits with additional valuations were issued for plumbing, heating, and electrical work (not shown here). As the chart illustrates, permit valuation varies significantly from year to year; however, with the exception of the “year of the hail damage repairs” (2008), valuation has ranged between $14 and $27 million. Chart 4: Permitted Residential Remodeling Since 2005 City Housing Improvement Services, Loans Trends and Program Descriptions • Home Improvement Services. The city’s architectural design service and remodeling continue to be great programs for residents. The numbers of visits are down over previous years, but the feedback we’ve received from residents indicates it is a valuable service. The home energy visits (Home Energy Squad Enhanced) started slowing down during the second half of 2014 and remain at a lower pace than previous years with 56 visits. There were 39 Remodeling Advisor visits and 12 Architectural Design service during the first half of 2015. Chart 5: Technical, Design and Home Energy Visits Since 2005 $13.9 $15.2 $22.5 $68.5 $26.6 $17 $26 $16.8 $21 $25 $11 0 20 40 60 80 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 First half 2015Permit Valuation - Million $ Year Residential Remodeling Permit Valuation 68 102 62 48 32 30 29 29 37 41 12 221 157 179 130 126 89 82 69 69 95 39 122 153 173 56 0 50 100 150 200 250 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1st half 2015Number of Visits Year Technical Home Improvement Services Architect Services Remodeling Advisor Home Energy Visits Study Session Meeting of August 24, 2015 (Item No. 6) Title: 2015 Semi-Annual Housing Programs Activity Report Page 5 Construction Management Plan Effective November 15, 2014, major additions (second story additions or additions of 500 square feet or more), demolitions and new construction will need to comply with a Construction Management Plan (CMP). In the first half of 2015, the following neighborhood notifications were sent: 16 major additions, 12 demo/rebuilds, 1 demo only and 2 new construction (on parcels that did not previously have a home). Map 1: Study Session Meeting of August 24, 2015 (Item No. 6) Title: 2015 Semi-Annual Housing Programs Activity Report Page 6 • Home Remodeling Fair and Tour Trend Both the Home Remodeling Fair and Tour continue to be popular events with residents. 200- 400 residents visited each of the six tour homes in May and the attendance at the Annual Remodeling Fair in February was approximately 1000. • City Loan and Rebate Trends The following chart shows the number of Move Up Loans, Discount Loans and Energy Rebates issued in recent years. The number of Discount Loans, nine, is relatively low; however it is on pace with 2014. CEE notes that home improvement loan use is slow in their service area. The four Move Up loans during the first half of 2015 is consistent with the pace during the first half of previous years. The energy rebate program is down from 2013 and 2014, but on pace with 2011 and 2012 with 43 rebates in the first half of 2015. Chart 6: Use of City Financial Incentives Since 2005 Summary of Move-Up Activity Loan and Service Costs Since 2005 Through 2012, for every dollar the City invested in move-up and discount loans, technical and design services, rebate programs, and administrative costs, residents invested five dollars, resulting in a 1:5 ratio of public to private investment with an increase to 1:5.2 for 2013 and 1:5.8 for 2014. The ratio of public to private investment in the first half of 2015 was 1:6.4 – for every dollar the city invested, residents invested roughly six dollars and forty cents. The City invested approximately $175,000 the first half of 2015 which leveraged $1,124,500 worth of private investments. One Move-Up loan contributed funding to a project valued at over $400,000 which increased the ratio of public to private investment. Move-Up in the Park loans are deferred until the sale of the home or forgiven after thirty years. The following loans have been paid off during the last few years: • 2012, three loans were paid off in the amount of $59,360 • 2013, three loans paid off in the amount of $52,249 • 2014, two loans paid off in the amount of $23,957 • First half of 2015, two loans paid off in the amount of $37,537 7 28 20 17 17 8 10 6 6 6 4 76 88 50 55 52 64 22 26 22 17 9 22 42 83 73 113 166 43 0 25 50 75 100 125 150 175 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1st half 2015Number Loans - Rebates Year Loans and Rebates Move up loans Discount loans Energy Rebates Study Session Meeting of August 24, 2015 (Item No. 6) Title: 2015 Semi-Annual Housing Programs Activity Report Page 7 Table 1: Move-Up Participation and Costs Since 2005 Move-Up Participation and Costs YEAR Move-Up Loans Discount Loans Architectural Design Services Remodeling Advisor Services Remodeling Tour & Fair Green Rebates Home Energy Squad Enhanced Visits Total City Cost 2005 7 $182,806 76 $45,636 68 $15,300 221 $28,730 $272,472 2006 27 $591,264 88 $186,205 102 $22,950 157 $20,410 1 $5,000 $825,829 2007 27 $620,000 50 $74,000 62 $12,400 179 $23,270 1 $5,000 $734,670 2008 18 $330,937 55 $114,129 49 $11,025 130 $16,900 1 $5,000 $477,991 2009 17 $329,650 52 $106,000 12 $7,200 126 $16,380 1 $5,000 22 $4,092 $468,322 2010 9 $209,769 64 $86,263 30 $6,750 89 $11,510 1 $5,000 42 $7,820 $327,112 2011 10 $226,877 22 $29,213 29 $6,525 82 $10,250 1 $5,000 83 $15,465 $293,330 2012* 6 $106,232 26 $31,276 29 $6,525 69 $8,970 1 $5,505 73 $13,748 122 $7,320 $179,576 2013 6 $145,071 22 $33,063 37 $8,325 69 $8,970 1 $8,271 113 $26,000 153 $10,650 $240,350 2014 6 $138,740 17 $26,079 41 $9,225 95 $12,350 1 $12,350 166 $37,575 173 $11390 $243,573 First half 2015 5 $124,000 9 $10,860 12 $2,700 39 $8,775 1 $10,084 43 $10,618 56 $2,790 $145,827 *The Remodeling Advisor fee increased from $130 to $225 in 2015. This fee had not increased since the program started. The fee is for a two hour in home consultation. Study Session Meeting of August 24, 2015 (Item No. 6) Title: 2015 Semi-Annual Housing Programs Activity Report Page 8 2. AFFORDABLE HOME OWNERSHIP, COMMUNITY DEVELOPMENT BLOCK GRANTS AND PUBLIC HOUSING UPDATE Live Where You Work The Live Where You Work Homebuyer Assistance Program began in spring 2009. The goal is to promote home ownership within the City among employees of St. Louis Park businesses. The city provides a deferred loan of $2,500 to an eligible employee and an additional $1,000 is provided to employees purchasing vacant lender-owned foreclosed properties. Employers are invited to contribute a matching or lesser amount to the City’s contribution. The deferred loan will be forgiven after 3 years if the employee continues to work for the employer and meets other qualification requirements. The City contracts with CEE for loan administration. Two homebuyers used the program during the first half of 2015. Total participation to date is 19. Housing Improvement Area (HIA) The HIA is a finance tool to assist with the preservation of the city’s existing townhome and condominium housing stock. An HIA is a defined area within a city where housing improvements are made and the cost of the improvements are paid in whole or in part from fees imposed on the properties within the area. The Association borrows low interest money from the City, improvements are completed and unit owners repay the loan through fees imposed on their properties and collected with property tax payments. To date, seven HIA’s have been established and over twelve million dollars of improvements has been made to 1100 units. There are no HIA’s currently in process. Community Development Block Grant (CDBG) Activity completed in the first half of 2015 was funded with FY2014 CDBG funds. $195,859 funded the following projects: rehab for SLP Housing Authority single family home, the single family low-income homeowner’s emergency repair and loan programs, Homes Within Reach home acquisition/rehab/sale, PPL and Perspectives for water main replacement at Louisiana Court, and Park & Rec Summer Youth Programming. West Hennepin Affordable Housing Land Trust, aka Homes Within Reach (HWR). Homes Within Reach is a program of West Hennepin Affordable Housing Land Trust that purchases properties, rehabilitates and then sells the home to qualified low to moderate income households. Buyers pay for the cost of the home only and lease the land for 99 years. City funds are leveraged with CDBG, Hennepin County Affordable Housing Incentive Fund (AHIF), HOME Partnership, Metropolitan Council, Minnesota Housing and other funds. Since the program began in 2007 twelve homes have been purchased and sold to low to moderate income families. Homes Within Reach creates and preserves affordable homeownership opportunities for working households in the western suburbs of Hennepin County by using the Community Land Trust practice, which takes the cost of the land out of the real estate transaction, making the home more affordable. This means that families can more easily purchase a home where they work or live, retain it for generations, and not over burden their incomes in becoming homeowners. As a result, both the families and communities can rely on affordable homeownership option, which expands homeownership, sustains community resources, supports residential stability, preserves affordability housing and supports a stronger local workforce. No homes were purchased in the beginning of 2015; however, an offer has been accepted on a house to purchase in the fall of 2015. Study Session Meeting of August 24, 2015 (Item No. 6) Title: 2015 Semi-Annual Housing Programs Activity Report Page 9 Twin Cities Habitat for Humanity The city has partnered with Habitat over the years to acquire nine blighted properties for rehab or tear-down for new construction. In 2011 the city assisted Habitat with the purchase of one property, construction was completed in the fall 2012 and the home was sold to a low income family. 3. HOUSING MATRIX The housing matrix shows at a glance the numbers and percentages of housing types, tenure (owner or non-homesteaded), affordable units, senior designated units and large single family homes. The matrix is a guide to evaluate future housing development proposals. • The percentage of owner occupied (homesteaded) units is consistent with 2014. The citywide ratio of homestead to non-homestead property currently stands at 53/47. The overall ratio of homestead to non-homestead property is decreasing due to the increase in new multi-family rental properties; however it remains the same as 2014. • The chart shows percentages of homesteaded residential units over time and the ownership rate increased in 2014. 2014 had 90% of single family detached homes were owner occupied and 67% of condos/townhomes were owner occupied. Chart 7: Percentage of Owner Occupied Units since 2006 • The May 2013 Maxfield Research Inc. Comprehensive Housing Needs Analysis reports the overall vacancy rate in St. Louis Park was 3.0% as of May 2013. The overall Metro Area vacancy rate is also very low at 2.8%. • Rental of duplexes remains strong and reflects a strong rental market – 65% of the duplex units are currently rental (non-homestead). Large Single Family Homes One of the City’s housing goals is to increase the number of larger homes available in the city. “Large single family homes” are being defined as exceeding 1,500 square feet of living space, 97 97 96 93 93 93 91 89 89 90 91 92 89 89 80 75 70 67 66 67 0 50 100 2006 2007 2008 2009 2010 2011 2012 2013 2014 1st half 2015Percentage YEAR % Owner Occupied (Homesteaded) Units Single Family Detached Homes Condos & Townhomes Study Session Meeting of August 24, 2015 (Item No. 6) Title: 2015 Semi-Annual Housing Programs Activity Report Page 10 having 3 or more bedrooms, 2 or more baths, and at minimum a 2 car garage. According to SLP Assessing Department, 2,173 – or 19% – of SLP single family homes meet this threshold. This is an increase of 22 homes since 2013 (due to new construction and additions). Although this size home is not considered large when compared to newly constructed housing, it is when compared to all SLP homes where 75% of single family homes have a foundation size less than 1,200 square feet. 48% of single family homes have 1,200 square feet above ground. Affordable Housing Fifty-six percent of the total city housing stock is considered affordable. The Met Council’s affordable guidelines changed in 2015 for homeownership and increased from 60% area median income (AMI) to 80% AMI ($65,800 for a family of four). Rental housing is still considered affordable to households with incomes at or below 60% AMI ($51,950 for a family of four) paying thirty percent of their income for housing costs whether renting or owning. Owner Occupied • The 2015 affordable ownership purchase price is $240,500 or less. The housing matrix also shows the data for home ownership at the 60% AMI rate and that purchase price is $186,500. • In the 2015, 7903 owner occupied homes are considered affordable which is 50% of the owner occupied housing stock and 27% of the total housing units. This is a large increase from 2014 because of the increase in AMI to 80% and the subsequent increase to the purchase price. Rental – • The Housing Authority is in the process of conducting a new Rental Survey. At this time 2013 data is the most current, but we will have updated info for the 2015 year-end report. • The 2013 affordable monthly rent including utilities for a 2 bedroom apartment for a family of four is $1,111 at 60% MAI. In 2014 the affordable rent was increased by $10; however, we do not have the 2014 rental survey completed yet. • There were an estimated 5,941 (25%) affordable rental units – including known subsidized units and estimated market rate units in 2013. • The estimated number of market rate affordable rental units is based on the SLPHA Rental Study and the Maxfield Research Inc Study. The Maxfield Research study surveyed apartment properties with 8 units and larger with an 84% participation rate. The number of affordable single family detached, duplex, condos and townhome units is from the SLPHA Rental Study. The overall response rate from the SLPHA Rental Study was 86.7%. Although the response rate was high this does not represent all rentals in the City. Study Session Meeting of August 24, 2015 (Item No. 6) Title: 2015 Semi-Annual Housing Programs Activity Report Page 11 St. Louis Park Housing Matrix June 30, 2015 Housing Units by Type Large Single Family Homes, Affordable, and Senior Housing Housing Type Housing Units Net Units added in 2015 Owner Occupied (Homestead) Non Homesteaded and/or Rental Large Single Family Homes 2015 Affordable Market Rate Owner Occupied Units 60% | 80% 2013 Reported Affordable Market Rate Rental Units** Public Subsidized Affordable Units, Includes Section 8 Housing Units Senior Designated Single Family Detached 11,614 47% 0 10,448 1166 2,173 1812 5903 58 55 0 Duplex 434 2% 0 150 284 8 41 82 0 0 Condos and townhomes 3513 14% 0 2363 1150 1729 1961 111 0 0 Apartments * 8,832 36% 0 0 8,832 4,557 957 1018 COOPs 114 <1% 0 114 0 42 106 Totals 24,507 100% 0 13,075 53% 11,432 47% 2,173 19% 3549 27% 7905 50% 4,909 45% 994 9% 1124 5% % of SF Homes % of Homestead % of Non- Homestead % of Non- Homestead % of Total Housing Units The percentage of owner occupied (homesteaded) units to rental or non-owner occupied (non-homesteaded) units has shifted from the 60 homesteaded/40 non- homesteaded ratio of the early 2000's. This is due in part to a change in homestead status of approximately 1,200 condominium and townhouse units since the early 2000s and the addition of new multi-family rental units. In 2011 the Met Council revised the affordable housing income standard. Rather than using 50% MAI for rental and 80% MAI for ownership, the revised affordable definition for 2012-2014 was that housing is affordable to households with incomes at or below 60% AMI ($51,950 for a family of 4 in 2015) paying thirty percent of their income for housing costs whether renting or owning. For 2015 the Met Council increased the affordable homeownership back to 80% AMI ($65,800 for a family of four in 2015). For 2013, a monthly rent of $1,111 or less for a 2 bedroom apartment for a family of four is considered affordable. ** Reported Affordable Market Rate Rental Units based on SLPHA Rental Study and 2013 Maxfield Research Study. 2013 data is the most comprehensive affordable rental data currently available. We are in the process of conducting the 2015 Rental Survey. Updated information will provided in the 2015 Annual report. Data source: SLP Community Development, Development Activity in St. Louis Park, SLP Inspections and Assessing. Study Session Meeting of August 24, 2015 (Item No. 6) Title: 2015 Semi-Annual Housing Programs Activity Report Page 12 Housing Development Project List since 2003 Project Developer Planning Approval Type Total Units Status/ Completion Parkside Urban Flats 460 Ford Rd Lovering Johnson 2003 Condo 48 Condos (70 units approved)Completed E&G Phase 1 TOLD Apartment 320 Completed 03 E&G Phase 2 TOLD Condo 120 Completed 04 Aquila Commons 8200 W 33rd St Brad Friez 2004 Condo 106 Completed 07 Brookside Lofts 4100 Vernon Ave S Master Development 2004 Condo & Single Family 27 Condos /14 Twnhms / 5 SF Completed 07 E & G - E (phase 3) 3820 Grand Way TOLD 2004 Condo 86 Completed 06 Village in the Park 3600 Wooddale Ave S Rottlund Homes 2004 Condo & Townhome 66 Condos /60 Sr. Condo / 78 Twnhms Completed 07 Westmarke Condos (Lurie) 1155 Ford Rd Brad Friez 2004 Condo 65 Completed 07 E & G NW (phase 4) 3820 Grand Way Bob Cunningham TOLD 2005 Condo 96 Completed 07 West Oak Condos 3251 Louisiana Ave Mendota Homes 2005 Condo 75 Completed 2007 McGurgan (owner) 4525 W 4th St Cornerstone Custom Const. (Builder)2006 Single-Family 1 Completed 2007 Hoigaard Village Harmony Vista & Camerata 5650 W 36th St Frank Dunbar 2006 Apartment 78 Unit Apt / 220 Unit Apt Completed 2008 Inglewood Condos 3125 Inglewood Ave Andrew Brenner 2006 Condo 6 Completed 2008 Park Place II Apartments "The Gables" 1361 Hampshire Ave S Bigos 2006 Apartment 49 Constructed 2008 Anna & Joel Thompson(owner) 4515 W 42nd St C.B. Hadley (Builder)2007 Single-Family 1 Completed 2008 Richard & Adrienne Harrison (Owner) 2600 Natchez Creek Hill Custom Homes (Builder)2008 Single-Family 1 Completed 2009 Ellipse 3920 Excelsior Blvd Bader 2008 Condo 132 Complete 2011 TowerLight 3601 Wooddale Ave S Greco 2008 Senior Apartment 115 Completed 2013 The Flats at West End 5310 16th St West The Excelsior Groups 2010 Apartment 119 Completed 2013 Shaun Smith (Owner) 2005 Louisiana Andrew Hewey Const. (Builder) 2010 Single-Family 1 Completed 2011 Hoigaard Village Medley Row & The Adaigo 5650 W 36th St Frank Dunbar 2011 Apartment & Rowhomes 22 Rental Rowhomes / 100 unit Apt Completed 2013 36 Park (Park Summit) 3601 Park Center Blvd EJ Plesko 2011 Apartment 192 Unit Apt Completed 2012 Eldridge 1st Addition Rob Eldridge 2011 Single-Family 4 new SF lot (5 SF lots total) Constructed 2012 Fretham 12th Add Curt Fretham 2011 Single-Family 5 new SF lots (6 SF lots total)Constructed 2013 Gateway Assisted Living 7115 Wayzata Blvd Viren Gori 2012 Assisted Living 22 Complete 2014 Calhoun Apt Homes Cty Rd 25 & Inglewood Ave Andrew Brenner 2012 Apartment 7 Completed 2014 E2 3920 Excelsior Blvd Bader 2012 Apartment 58 Completed 2013 Kaiser Subdivision Rob Eldridge 2012 Single-Family 2 Constructed 2013 Eliot 6800 Cedar Lake Rd Dan Hunt 2013 Apartment & Single- Family 138 Apt units / 3 SF Under Construction Wooddale Flats 3998 Wooddale Ave S Gatehouse Prop Ltd 2013 Condos 33 Under Construction Fretham 14th Addition Curt Fretham 2013 Single-Family 1 new lot created (2 SF lots total)Completed 2014 Millenium at West End 1621 West End Blvd DLC Residential 2014 Apartment 158 Under Constuction Eldridge 5th Addition 7701 Edgebrook Rob Eldridge 2014 Single-Family 1 Constructed 2015 5609 Wood Ln Gavin May 2014 Single-Family 1 Constructed 2015 4101 31st St Apts 4101 31st St Josh Brandsted 2014 Apartment 13 Under Construction 4106 Forest Lane ALTUS Architect/Sunny & Tiffiny Han 2015 Single-Family 1 Under Construction 4300 Brookside JP Brooks 2015 Single-Family 1 Under Construction Total Units Added since 2003 Single Family 28 Condo 860 Townhome Ownership 92 Townhome Rental 22 Apartments 1452 Senior Apartments 115 Senior Assisted Living 22 Senior Condos 60 Total Units Added since 2003 2651 Housing Development Project List Study Session Meeting of August 24, 2015 (Item No. 6) Title: 2015 Semi-Annual Housing Programs Activity Report Page 13 4. RELATED ISSUES Foreclosures Foreclosures are measured by the number of sheriff sales. The number of residential foreclosures in St. Louis Park and throughout Hennepin County has been declining since 2010. The chart below shows foreclosures since 2006. Foreclosures remain low during the first half of 2015. Chart 8: St. Louis Park Residential Foreclosures by Year, 2006 – first half of 2015 The trend chart below shows foreclosure by housing type over time. Chart 9: Residential Foreclosures by Housing Type *Townhome & DB = Townhome and Double Bungalow/Duplex 76 87 133 92 191 163 122 59 54 27 0 40 80 120 160 200 240 2006 2007 2008 2009 2010 2011 2012 2013 2014 First half 2015Number of Sherrif Sales Year Residential Foreclosures by Year 56 78 93 63 106 109 82 45 39 15 20 9 30 27 54 40 30 9 14 9 0 0 10 2 31 8 10 5 1 3 0 40 80 120 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Number Sherrif Sales Year Residential Foreclosures by Housing Type Single Family Detached Condos Townhome & DB Study Session Meeting of August 24, 2015 (Item No. 6) Title: 2015 Semi-Annual Housing Programs Activity Report Page 14 5. ST. LOUIS PARK HUD FEDERALLY FUNDED HOUSING PROGRAMS: UPDATE The Housing Authority administers programs that ensure the availability of safe and desirable housing options in the St. Louis Park community. These programs include the Public Housing program, Section 8 Housing Choice Voucher rental assistance program, Shelter Plus Care rental assistance program, Louisiana Court Max 200 Rental Assistance Program, and TRAILS family self-sufficiency program. The Authority currently serves over 500 eligible, low-income households through their housing programs. Public Housing The HA owns a low-rise apartment building (108 one-bedroom units and 2 two-bedroom caretaker units) built in 1975, and 37 scattered site single-family units (3 to 5 bedrooms) acquired and constructed between 1974 and 1996. Although the low-rise building is designated for general occupancy, priority is given to elderly and disabled. The single-family scattered units house families with children. The HA also holds the HUD Annual Contributions Contract (ACC) and maintains a waiting list for 12 two-bedroom Public Housing apartment units located at Louisiana Court. These units are owned and managed by Project for Pride in Living. The units and occupancy rates for the Public Housing units are noted in the table. Public Housing Total Units 1-BR 2-BR 3-BR 4-BR 5-BR Occupancy June 30, 2015 Hamilton House 108 108 100% Scattered Site Single Family 37 0 0 17 17 3 100% Louisiana Court, Metropolitan Housing Opportunity (MHOP) Units 12 12 100% Total (bedroom size) 108 12 17 17 3 Total 157 100% Housing Choice Voucher Program (HCV)/Section 8 The HA is funded to administer up to 268 Section 8 Housing Choice Vouchers. This rent assistance program provides rent subsidies for low-income individuals and families in privately owned, existing market rate housing units. The rent subsidy is paid directly to the owner of the rental property by the HA with funds provided by HUD. The HA offers both tenant-based and project-based vouchers. Forty vouchers of the HA’s allocation are designated for use in three privately owned developments (Excelsior & Grand, Vail Place, and Wayside) and are referred to as project-based vouchers. Shelter Plus Care (Permanent Rental Assistance) The Shelter Plus Care Program is designed to link rental assistance with supportive services for hard-to-reach homeless persons with disabilities (primarily those who are seriously mentally ill or have chronic problems with alcohol, drugs or both) and their families. Grants are provided to be used for permanent housing which must be matched with supportive services that are equal in value to the amount of rental assistance and appropriate to the needs of population to be served. St. Louis Park is the grant recipient and we partner with three sponsor organizations that administer supportive housing programs. The Housing Authority administered 43 units of Shelter Plus Care assistance through May of 2015; however, CIP did not receive the Shelter Plus Grant renewal beginning June 1, 2015. Study Session Meeting of August 24, 2015 (Item No. 6) Title: 2015 Semi-Annual Housing Programs Activity Report Page 15 Section 8 Housing Choice Vouchers (HUD Approved) Units Utilization YTD June 30, 2015 Tenant-Based (63 are Port-Outs) 223 98% Tenant-Based Port - Ins 66 Avg./month Project-Based: 40 Wayside Supportive Housing 15 87% Excelsior & Grand 18 100% Vail Place 7 100% Shelter Plus Care Rental Assistance: 27 in SLP Perspectives Inc. 11 100% Community Involvement Program (CIP) – Scattered Site 11 81% **Wayside Supportive Housing 5 94% Total 330 Shelter Plus Care Units administered by SLP HA but located outside of St. Louis Park CIP- Clear Spring Road 8 80% Project for Pride In Living (PPL)/Camden 8 105% **Beginning in 2012, CIP and Perspective grants provide funding for up to five units of Shelter Plus Care Rental Assistance at Wayside House. Wayside House’s Project Based units were decreased by five units to fifteen. CIP did not receive a renewal Shelter Plus Care grant beginning June 2015. Waiting Lists Assisted Housing Waiting List as of June 30, 2015 Public Housing 1-BR 2-BR 3-BR 4-BR 5-BR Total 478 334 106 113 36 1067 Section 8 332 Excelsior & Grand 33 MAX 200 78 1510 The one bedroom public housing waiting list at Hamilton House will be opened in September 2015. The Housing Choice Voucher waiting list will be opened late 2015 or 2016. Stable HOME Rental Assistance Program The Stable HOME program provides rent assistance throughout suburban Hennepin County to low income singles and families who were homeless or would otherwise be at risk of homelessness. This program is funded with federal HOME funds allocated to the county. Single participants are also participants in the county’s Employment Pays program and families are also in the Stable Families Initiative program. For both groups the rent assistance participation is limited to 2 years, during which time they establish good rental histories and relationships and work with direct assistance from service providers to improve their earnings to the point where they do not need rent assistance. The program is administered by the St. Louis Park Housing Authority, but participants are free to choose a rental unit anywhere in suburban Hennepin County. There are currently 18 participant families under contract throughout suburban Hennepin County. Study Session Meeting of August 24, 2015 (Item No. 6) Title: 2015 Semi-Annual Housing Programs Activity Report Page 16 6. PROGRAM DESCRIPTIONS Technical, Design, and Conservation Services Architectural Design Service This service provides an architectural consultation for residents to assist with brainstorming remodeling possibilities and to raise the awareness of design possibilities for expansions. Residents select an approved architect from a pool developed in conjunction with the MN Chapter of the American Institute of Architects. All homeowners considering renovations are eligible for this service regardless of income; however, to ensure committed participants, residents make a $25 co-pay. Remodeling/Rehab Advisor The intention of this service is to help residents improve their homes (either maintenance or value added improvements) by providing technical help before and during the construction process. All homeowners are eligible for this service regardless of income. Resident surveys indicated that homeowners valued the service and would recommend it to others. The City contracts with the Center for Energy and Environment (CEE) for this service. Home Energy Squad Enhanced Visit Home Energy Squad Enhanced program is a comprehensive residential energy program designed to help residents save money and energy and stay comfortable in their homes. The cost per resident was decreased to $50 per enhanced visit in 2013. The home energy squad consultant evaluates energy saving opportunities and installs the energy-efficiency materials the homeowner choses including: door weather stripping, water heater blanket, programmable thermostat, compact fluorescent light bulbs, high efficiency shower heads and faucet aerators. They will also perform diagnostic tests including a blower door test to measure the home for air leaks, complete an insulation inspection, safety check the home’s heating system and water heater and help with next steps such as finding insulation contractors. All single family and duplex homeowners are eligible. Renters qualify for the installed visit ($30) without diagnostic tests. The Home Energy Squad Enhanced visits qualified residents for CEE’s low interest financing and utility rebates and they also notify residents of the city loan and rebate opportunities. The program which began in March, 2012, is administered by the Center for Energy and Environment (CEE). The city pays $70 per resident visit which is leveraged with funds from Xcel Energy, Center Point Energy and CEE. Annual Home Remodeling Fair The cities and school district community education departments of St. Louis Park, Hopkins, Minnetonka, and Golden Valley co-sponsor the annual home remodeling fair. The fair provides residents an opportunity to attend seminars, talk with vendors and city staff about permits, zoning, home improvement loans, and environmental issues related to remodeling. The fair is a self-sustaining event and vendor registration fees cover the costs. Home Remodeling Tour The annual tour is designed to meet the housing goal to remodel and expand single family owner occupied homes. The self-guided tour of six homes provides a showcase of a variety of home remodeling projects to provide ideas, information, and inspiration to other residents considering remodeling. Study Session Meeting of August 24, 2015 (Item No. 6) Title: 2015 Semi-Annual Housing Programs Activity Report Page 17 Construction Management Plan The city recognizes that many households are looking for larger homes. As a result, significant additions and/or tearing down of existing homes and rebuilding larger homes is becoming more common. Because St. Louis Park is a fully built community, these major additions and construction of new homes impacts the surrounding neighbors. Effective November 15, 2014, major additions (second story additions or additions of 500 square feet or more), demolitions and new construction will need to comply with a Construction Management Plan (CMP) per City Code 6-71. Major additions, tear downs and new construction will be required to send a written neighborhood notification to neighbors within 200 feet of the property. Demolitions and/or new construction will also require a neighborhood meeting and signage. Two additions and one demolition fell under the CMP requirement in 2014. Financial Programs Discount Loan Program This program encourages residents to improve their homes by “discounting” the interest rate on the Minnesota Housing Finance Agency (MN Housing) home improvement loans. Residents with incomes of $69,200 or less qualify for a greater discount than those with incomes of $99,500 or less. Eligible improvements include most home improvement projects with the exception of luxury items such as pools and spas. The City contracts with CEE for loan administration. Implementation of discounting of MHFA loans began in late 1999 as a pilot project. Move – Up Transformation Loan The purpose of this loan is to encourage residents with incomes at or below 120% of median area income ($103,900 for a family of four) to expand their homes. The program provides deferred loans for 25% of the applicant’s home expansion project cost, with a maximum loan of $25,000. The revolving loan pool will continue to fund future expansions. This loan requires significant upfront work by the residents, from deciding on the scope of the project to selecting contractors. Loan guidelines are: • Only residents making significant expansions are eligible. The minimum project cost must exceed $35,000. • The maximum loan amount is $25,000. • The loan has 0% interest with a carrying cost fee of 3% paid by the borrower which covers the lender’s administrative fee. Green Remodeling Program & Energy Rebates The Green Remodeling Program includes the Home Energy Squad Enhanced home visit program, use of energy rebates, and access to CEE’s Home Energy Loan. The city provides a match of 50% of gas and electric utility rebates for energy efficient furnaces, water heaters, air conditioners and qualifying air sealing and insulation. The average rebate in the first half of 2015 was approximately $250 for a total City cost of $10,618. Air sealing and insulation is a new rebate program that began in 2013 and rebates average $500. CEE also provided low interest loans to residents making qualifying energy improvements. This energy improvement loan has no income restrictions and there is no cost to the City. Study Session Meeting of August 24, 2015 (Item No. 6) Title: 2015 Semi-Annual Housing Programs Activity Report Page 18 Meeting: Study Session Meeting Date: August 24, 2015 Written Report: 7 EXECUTIVE SUMMARY TITLE: Homes Within Reach: City Funded Revolving Line of Credit to Assist w/ Acquisition and Rehab Costs of Affordable Homeownership Units RECOMMENDED ACTION: None at this time. Staff is proposing that the City Council consider a request from Homes Within Reach (HWR), also known as West Hennepin Affordable Housing Land Trust (WHAHLT), to increase the revolving line of credit that the City previously approved from the current amount of $250,000 to $500,000. POLICY CONSIDERATION: What will be the source of funds for the increased line of credit? What risk does the City have with providing a line of credit? SUMMARY: West Hennepin Affordable Housing Land Trust, doing business as Homes Within Reach, purchases properties, rehabilitates and then sells the home to qualified low to moderate income households with incomes at or below 80% of the median area income. Buyers pay for the cost of the home only and lease the land for 99 years. City funds are leveraged with CDBG, Hennepin County Affordable Housing Incentive Fund (AHIF), HOME, Metropolitan Council, Minnesota Housing and other funds. Since the program began in 2007 twelve homes have been purchased and sold to low to moderate income families. In 2009 the council approved a line of credit for HWR and they have accessed the line of credit on seven home purchases. The funds from the line-of-credit provide financial assistance for the cost of the acquisition, maintenance/repair and rehab prior to the sale of the home to a homebuyer. The line-of-credit saves HWR the cost of accessing funds through an interest bearing line-of-credit with a financial lender. The line-of-credit is repaid upon the sale of the home in accordance with the Agreement between the city and HWR. Increasing the line of credit to a maximum of $500,000 would provide HWR the ability to purchase and rehab two properties simultaneously if the opportunity presents itself. Increasing the line of credit would be a helpful tool to allow HWR to react to new opportunities that can be hindered by project timelines and 12 month funding constraints from sources such as CDBG. On average HWR has paid back the line of credit six months from the purchase date. FINANCIAL OR BUDGET CONSIDERATION: The Housing Rehab fund will be the source of funds utilized to establish the revolving line-of-credit. In addition to the line-of-credit, the City will continue to provide financial assistance through the allocation of Housing Rehab funds and CDBG funds as available to facilitate the purchase of new affordable homes in St. Louis Park. VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and diverse housing stock. SUPPORTING DOCUMENTS: Discussion Prepared by: Marney Olson, Assistant Housing Supervisor Reviewed by: Michele Schnitker, Housing Supervisor/CD Deputy Director Approved by: Tom Harmening, City Manager Study Session Meeting of August 24, 2015 (Item No. 7) Page 2 Title: HWR: City Funded Revolving Line of Credit to Assist w/ Acquisition & Rehab Costs of Affordable Homes DISCUSSION BACKGROUND: For over a decade, several west metro communities including St. Louis Park have been partnering with Homes Within Reach (HWR) to create long term affordable home- ownership. The goal of this private non-profit is to provide ownership opportunities for working households in suburban Hennepin County at or below 80% of Area Median Income. Buyers pay for the cost of the home only and lease the land for 99 years. In addition, if a family wants to sell the property, the home may be purchased by HWR to ensure the long term affordability of the home. City funds are leveraged with CDBG, Hennepin County Affordable Housing Incentive Fund (AHIF), HOME, Metropolitan Council, Minnesota Housing and other funds. Since the program began in 2007 twelve homes have been purchased and sold to low to moderate income families. Since its inception, HWR has sold 118 homes and placed 135 families across 11 suburban communities including 12 homes in St. Louis Park over the last 9 years. In 2009 the council approved a line of credit for HWR and they have accessed the line of credit on seven home purchases. The funds from the line-of-credit provide financial assistance for the cost of the acquisition, maintenance/repair and rehab prior to the sale of the home to a homebuyer. The line-of-credit saves HWR the cost of accessing funds through an interest bearing line-of-credit with a financial lender. The line-of-credit is repaid upon the sale of the home in accordance with the Agreement between the city and HWR. The following chart profiles the 12 projects in St. Louis Park: Categories 2002-6/15 HWR Totals 2002-6/15 SLP Totals Comments Total HWR Parcels 121 12 HWR Households 118 11 HWR Resales 17 3 HWR Total Families Served 135 13 HWR Average Income Served $42,283 $44,328 HWR Area Median Income Served (%) 60.8% 61.9% Income and family size drives AMI calculation HWR Average Final Mortgage Amount $906 $945 Includes PITI HWR Average Sale Price $125,502 $126,125 HWR Number Persons Served 459 51 Includes 3 resales Number of Communities Served 11 1 Increasing the line of credit to a maximum of $500,000 would provide HWR the ability to purchase and rehab two properties simultaneously if the opportunity presents itself. This increase is comparable to what some of our neighboring communities have provided HWR. Minnetonka currently has a line of credit of $750,000 and in the past Eden Prairie has had a $500,000 line of credit when HWR was producing more than one property per year in this community. Increasing the line of credit would be a helpful tool to allow HWR to react to new opportunities that can be hindered by project timelines and 12 month funding constraints from sources such as CDBG. On Study Session Meeting of August 24, 2015 (Item No. 7) Page 3 Title: HWR: City Funded Revolving Line of Credit to Assist w/ Acquisition & Rehab Costs of Affordable Homes average HWR has paid back the line of credit six months from the purchase date. Each draw will be interest free, except that any interest HWR earns on the funds must be paid to the city. The City Manager will have full discretion to approve or deny funding for each housing unit and the funds will be designated to fund acquisition, rehab and repair costs. HWR will be required to submit a written request to the city that includes the property’s address and estimated market value. Purchase price and a closing statement will be submitted following the closing. A portion of the funds will be repaid to the city upon sale of the home to a homebuyer with the remaining balance due within 90 days. HWR has promptly paid back the line of credit each time it has been accessed and on average HWR has paid back the line of credit 6 months from the date they accessed the line of credit. PRESENT CONSIDERATIONS: HWR has a purchase agreement in place to purchase the 13th home in St. Louis Park with a closing planned for October. HWR’s community land trust model approach helps families purchase an affordable home in St. Louis Park and continues to be a great resource for our community. NEXT STEPS: If Council supports increasing the line of credit, staff will revise the Agreement between HWR and the city incorporating the increased line of credit. Staff will prepare a report for Council to approve the increased line of credit at a future council meeting. Meeting: Study Session Meeting Date: August 24, 2015 Written Report: 8 EXECUTIVE SUMMARY TITLE: Comprehensive Plan Amendment for Future SWLRT Joint Development RECOMMENDED ACTION: No action at this time. The purpose of this report is to inform the City Council of the requested amendment of the Comprehensive Plan for 4601 Highway 7, 4725 Highway 7, and 3130 Monterey Ave from BP – Business Park to MX – Mixed Use; action will be requested on September 8, 2015. POLICY CONSIDERATION: Is the proposed amendment consistent with the long range land use plans for the area in question? SUMMARY: City Staff proposes a Comprehensive Plan Amendment for the properties located at 4601 Highway 7, 4725 Highway 7, and 3130 Monterey Ave from BP – Business Park to MX – Mixed Use. Staff is seeking a change to the land use designation in order to better reflect future planning for the site. The FTA has also indicated the amendment is needed in order to allow this area to be considered for its Joint Development program. A zoning change is not proposed at this time. City Staff has been working on background studies and information with the Southwest Project Office (SPO) over the past several years for the site that is the subject of this proposed Comprehensive Plan amendment. This site includes the Vision Bank site and the 4601 Highway 7 (and 3130 Monterey Ave) site to east that the City has purchased in the Beltline station area as shown in the attached maps. The Comprehensive Plan currently designates the area as “Business Park,” and the proposal is to change its land use designation to “Mixed Use” to reflect the future intent for the area. Over the past six or so years since the property was designated Business Park, work in the station area has pointed to more of a mixed use with residential uses, versus just office and industrial. Because Business Park does not include residential, the intent is to make the change to allow mixed use with residential as well as other uses. FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: Discussion Map of Amendment Municipal Consent Drawing – Beltline Station Area Prepared by: Meg McMonigal, Principal Planner Reviewed by: Michele Schnitker, Housing Supervisor/Community Development Deputy Director Approved by: Tom Harmening, City Manager Study Session Meeting of August 24, 2015 (Item No. 8) Page 2 Title: Comprehensive Plan Amendment for Future SWLRT Joint Development DISCUSSION BACKGROUND: City Staff proposes a Comprehensive Plan Amendment for the properties located at 4601 Highway 7, 4725 Highway 7, and 3130 Monterey Ave from BP – Business Park to MX – Mixed Use. Staff is seeking a change to the land use designation in order to better reflect future planning for the site. A zoning change is not proposed at this time. Current Comprehensive Plan: BP – Business Park Proposed Comprehensive Plan: MX – Mixed Use Current Zoning: I-G – General Industrial Surrounding uses: Office/warehouse to the east; Industrial to the west; trail, rail, vacant land, and office to the south; school and residential across Highway 7/CSAH #25 to the north SWLRT Plans: The base SWLRT plans currently show a surface parking lot on the Vision Bank site with additional right-of-way owned by the city (see attached Municipal Consent plan for the Beltline Station). Ideally, this area would not be a surface parking lot in the long term, as it is a very visible site that could be more fully utilized to serve both park & ride and development. As a part of the planning for SWLRT, the City has been working with the Metropolitan Council on a Federal Transit Administration (FTA) program call “Joint Development.” Joint Development is a program that has the intent of integrating the transit project with commercial, residential or mixed-use (transit-oriented) development into the surrounding area to increase Study Session Meeting of August 24, 2015 (Item No. 8) Page 3 Title: Comprehensive Plan Amendment for Future SWLRT Joint Development density and transit ridership, create and retain jobs, and enhance the vitality and overall economic health of the area. As we continue to pursue the idea of Joint Development and incorporate transit-oriented development (TOD) at the Beltline Station area, the FTA has indicated that the Comprehensive Plan land use designation should reflect this planning, and in this case, “Mixed Use” is the best category indicating that intent. The FTA needs this designation to continue to allow this area to be considered for its Joint Development program. Other Planning: Included with this overall planning, the city has applied for and received a federal grant that would help to construct a parking ramp in this location, thereby allowing more land use efficiencies and the opportunity for more transit-oriented development to occur. The parking ramp would ideally serve both park & ride and surrounding development. Staff also continues to work on the Form-Based Code (FBC) District for this area. “Mixed Use” as a category in the Comprehensive Plan is consistent with the FBC. In a little longer range picture we are pursuing a new Comprehensive Plan chapter for the LRT corridor, which would set the table for development, the form-based code, and other goals and policies we have pursued and/or adopted. This is expected to occur over approximately the next year. Analysis: Comprehensive Plan Goals: The proposed amendment for these parcels is consistent with the City’s “Vision for Land Use” and “Mixed Use” goals adopted into the Comprehensive Plan. These goals include: 15. Pursue redevelopment of future transitway station area as transit-oriented mixed-use centers. 16. Expand the development of mixed-use areas within St. Louis Park to create a more livable and connected community Mixed Use: In the Mixed Use land use category, the goal is to create pedestrian-scale mixed-use buildings, typically with a portion of retail, service or other commercial uses on the ground floor and residential or office uses on upper floors. Mixed use buildings typically have approximately 75 to 85 percent of the building for residential use and 15 to 25 percent for commercial or office uses. Taller buildings may be appropriate in some areas and net residential densities between 20 and 50 units per acre are allowed, or more with a Planned Unit Development. The proposed amendment suits the site by allowing a mix of uses, residential uses, higher densities and efficiency of land uses that are transit-oriented. The Mixed Use category best serves this area by promoting new development opportunities that work well with the adjacent SWLRT station. The complete Comprehensive Plan can be found at: http://www.stlouispark.org/comprehensive- plan.html Study Session Meeting of August 24, 2015 (Item No. 8) Page 4 Title: Comprehensive Plan Amendment for Future SWLRT Joint Development Study Session Meeting of August 24, 2015 (Item No. 8) Page 5 Title: Comprehensive Plan Amendment for Future SWLRT Joint Development Municipal Consent Plan – Beltline Station Meeting: Study Session Meeting Date: August 24, 2015 Written Report: 9 EXECUTIVE SUMMARY TITLE: The Shoreham PUD Amendment RECOMMENDED ACTION: No action required at this time. The purpose of this report is to provide the Council with information on this amendment prior to formal City Council action. POLICY CONSIDERATION: None SUMMARY: City staff is requesting an amendment to the Shoreham Planned Unit Development (PUD), 36-268-PUD 1, established by Ordinance 2471-15 to correct a technical error discovered in the Ordinance text. The amendment in no way changes the previously approved project but rather corrects an error within the Ordinance text so that the PUD text is consistent with the approved development plans and the neighborhood, Planning Commission and City Council intentions. The proposed change will correct and clarify that multiple-family residential only, is permitted on the southern portion of the property and that mixed-use development is permitted on the northern portion of the property. Although this is a technical and housekeeping matter, the amendment is still considered to be a major amendment to the Shoreham PUD Ordinance. A public hearing before the Planning Commission is scheduled for August 19, 2015. The First Reading of the amendment is tentatively scheduled to be presented to the Council on the consent agenda at the September 8 meeting and the Second Reading is tentatively scheduled for the September 21 Council meeting. FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Discussion Draft Ordinance Official Exhibit Sheet AS100 Prepared by: Ryan Kelley, Planner Reviewed by: Sean Walther, Planning & Zoning Supervisor Michele Schnitker, Deputy Community Development Director Approved by: Tom Harmening, City Manager Study Session Meeting of August 24, 2015 (Item No. 9) Page 2 Title: The Shoreham PUD Amendment DISCUSSION BACKGROUND: The Shoreham PUD was recommended for approval by the Planning Commission on May 6, 2015 and approved by the City Council June 1, 2015. The approved PUD consists of a mixed-use building that includes up to 150 residential units, and 20,000 square feet of general office and medical office uses. The approved building would be five stories along the County State Aid Highway (CSAH) 25 Frontage Road and three stories along 31st Street West. The site plan includes a driveway that runs through the site, connecting between France Avenue on the east and Glenhurst Avenue on the west. This driveway, which provides access to the on-site parking, divides the site approximately in half, with the north portion of the site having the five-story building and the southern portion of the site, along 31st Street West, having the three-story building. The approved plans additionally included only multiple-family residential units on the southern portion of the site and the mixed-use development on the northern portion of the site. The neighborhood expressed their support for this arrangement of uses on the site, and appreciated the smaller-scale building on 31st Street with only multiple-family residential units. Staff, as well as the Planning Commission and City Council also supported this site plan. The staff report that accompanied the PUD ordinance included the following paragraph to this point: The PUD for this district will limit uses along W 31st St to multiple-family dwelling units. General commercial, retail, office and medical office uses will be permitted north of the driveway through the property. Specific uses on the site are governed by the PUD Zoning Ordinance. The ordinance is attached to this report. For the purpose of writing the ordinance, under the City’s recently adopted PUD Ordinance, and to clearly illustrate the development regulations for different portions of the site, the site was divided into two zones; Zone A, which is the northern portion of the site, and Zone B, which is the southern portion. Sheet AS100 of the Official Exhibits, referenced in the Ordinance, illustrated this site division, and the Ordinance 2471-15, has a text description of this same division which is consistent with the Official Exhibit. The Ordinance uses these zones to regulate such items as the height of buildings within each zone, the permitted uses within each zone, and the façade requirements of each zone. After the Ordinance was adopted by the Council on June 1, 2015 and the Summary Ordinance subsequently published, an error was discovered regarding how the permitted uses were assigned to each zone and the reference to those zones for façade requirements. The uses that were to be permitted in Zone B were listed under Zone A, namely the multiple family residential use, and the uses that were to be permitted in Zone A were listed under Zone B. The PUD amendment is to correct this error and list the uses under the appropriate zones and reference the appropriate zone for façade requirements. The amendment does not change the approved development plans previously shown to the neighborhood, Planning Commission or City Council. NEXT STEPS: Staff intends to provide the Ordinance amendment to the Council on the consent agenda for approval at the September 8, 2015 meeting. The second reading is tentatively scheduled for the September 21, 2015 meeting, also on the consent agenda. Study Session Meeting of August 24, 2015 (Item No. 9) Page 3 Title: The Shoreham PUD Amendment ORDINANCE NO. ____-15 ORDINANCE AMENDING ORDINANCE NO. 2471-15 RELATING TO ZONING BY CREATING SECTION 36-268-PUD 1 AS A PLANNED UNIT DEVELOPMENT ZONING DISTRICT FOR THE PROPERTY LOCATED AT 3907 AND 3915 HIGHWAY 7, 3031 GLENHURST AVENUE, AND 3914 AND 3918 31ST STREET WEST THE CITY OF ST. LOUIS PARK DOES ORDAIN: Findings Sec. 1. The City Council has considered the advice and recommendation of the Planning Commission (Case No. 15-11-S, 15-12-PUD and 15-13-VAC) for amending the Zoning Ordinance to create a new Planned Unit Development (PUD) Zoning District. Sec. 2. The Comprehensive Plan designates this property as Mixed Use. Sec. 3. The Zoning Map shall be amended by reclassifying the following described lands from C-2 General Commercial and R-4 Multiple Family Residence to PUD 1: Lot 1, Block 1, The Shoreham Addition; Hennepin County, Minnesota; and to the center line of all adjacent right-of-way. Sec. 4. The City Council has considered the advice and recommendation of the Planning Commission (Case No. 15-35-PUD) for amending Ordinance 2471-15 to correct a text error in said Ordinance related to the permitted uses within specific portions of the redevelopment site. Sec. 5. The St. Louis Park Ordinance Code, Section 36-268 is hereby amended to add the following Planned Unit Development Zoning District: Section 36-268-PUD 1. (a) Development Plan The site shall be developed, used and maintained in conformance with the following Final PUD signed Official Exhibits: 1. G000 – Cover Sheet 2. C1.01 – Title Sheet 3. C2.01 – Preliminary Plat 4. C2.02 - Construction Route/Parking 5. C3.01 – Site Plan 6. C4.01 – Grading and Erosion Control 7. C6.01 – Utility Plan 8. C8.01 – France Avenue Plan and Profile 9. L000 – Tree Preservation Plan 10. L100 – Landscape Site Plan 11. L101 – Planting Details Study Session Meeting of August 24, 2015 (Item No. 9) Page 4 Title: The Shoreham PUD Amendment 12. AS100 – Architectural Site Plan 13. A100 – Level P1 Floor Plan 14. A110 – Level 1 Floor Plan 15. A120 – Level 2 Floor Plan 16. A130 – Level 3 Floor Plan 17. A140 – Level 4 Floor Plan 18. A150 – Level 5 Floor Plan 19. A160 – Roof Plan 20. A200 – Elevations 21. A201 – Elevations 22. A202 – Elevations 23. A310 – Building Sections 24. Site Lighting Photometric Plan 25. Final Plat 26. Zoning Map Amendment Exhibit The site shall also conform to the following requirements: 1) The property shall be divided into two zones, as indicated on Sheet AS100 of the Official Exhibits. The zones shall be established by dividing the site into a north side and south side. The north side shall be called Zone A and the south side shall be called Zone B. 2) Parking will be provided off-street in a surface lot and structured parking, and on-street in the circular driveway on the north side of the property. A total of two-hundred-ninety-one (291) parking spaces will be provided: 203 spaces for residential units and 88 spaces for non-residential uses. 3) The maximum building height in Zone A shall not exceed 65 feet and five stories. The maximum building height in Zone B shall not exceed 35 feet and three stories. 4) The development site shall include a minimum of 12 percent designed outdoor recreation area based on private developable land area. (b) Permitted Uses Zone A (1) Multiple-family dwellings. Dwelling units are not permitted on the first floor. Uses associated with the multiple-family dwellings, including, but not limited to the residential office, fitness facility, mail room, assembly rooms or general amenity space are limited to a maximum of 50% of the building first floor. (2) Commercial uses. Commercial uses are only permitted on the first floor, and are limited to the following: office, medical or dental office, adult day care, group day care/nursery school, group home/nonstatutory, banks without drive-up facilities, food service, private entertainment (indoor), retail shops, service, showrooms and studios. Study Session Meeting of August 24, 2015 (Item No. 9) Page 5 Title: The Shoreham PUD Amendment a. All parking requirements must be met for each use. b. Hours of operation for commercial uses shall be limited to 6 a.m. to 12 a.m. c. No drive up facilities are allowed. (3) Civic and institutional uses. Civic and institutional uses are limited to the following: education/academic, library, museums/art galleries, indoor public parks/open space, police service substations, post office customer service facilities, public studios and performance theaters. Zone B (1) Multiple-family dwellings. Dwelling units are not permitted on the first floor. Uses associated with the multiple-family dwellings, including, but not limited to the residential office, fitness facility, mail room, assembly rooms or general amenity space are limited to a maximum of 50% of the building first floor. (2) Commercial uses. Commercial uses are only permitted on the first floor, and are limited to the following: office, medical or dental office, adult day care, group day care/nursery school, group home/nonstatutory, banks without drive-up facilities, food service, private entertainment (indoor), retail shops, service, showrooms and studios. a. All parking requirements must be met for each use. b. Hours of operation for commercial uses shall be limited to 6 a.m. to 12 a.m. c. No drive up facilities are allowed. (3) Civic and institutional uses. Civic and institutional uses are limited to the following: education/academic, library, museums/art galleries, indoor public parks/open space, police service substations, post office customer service facilities, public studios and performance theaters. (c) Accessory Uses Accessory uses are as follows: (1) Incidental repair or processing which is necessary to conduct a permitted use and not to exceed ten percent of the gross floor area of the associated permitted use. (2) Home occupations complying with all of the conditions in the R-C district. (3) Catering, if accessory to food service, delicatessen or retail bakery. (4) No outdoor uses or storage allowed. (d) Special Performance Standards Study Session Meeting of August 24, 2015 (Item No. 9) Page 6 Title: The Shoreham PUD Amendment (1) All general zoning requirements not specifically addressed in this ordinance shall be met, including but not limited to: outdoor lighting, architectural design, landscaping, parking and screening requirements. (2) All trash handling and loading areas shall be inside of the building and screened from view. (3) Signage shall be allowed in conformance with the approved redevelopment plan or final PUD site plan and development agreement in accordance with the following conditions: a. Pylon signs are prohibited; b. Freestanding monument signs shall utilize the same exterior materials as the principal buildings and shall not interfere with pedestrian, bicycle or automobile circulation and visibility; c. Pedestrian-scale signs visible from public sidewalks shall be no more than three feet in vertical dimension unless flush with the building wall; and d. Maximum allowable number, sizes and heights of signs shall be regulated by section 36-362, C-2 requirements, except as may be specifically modified by the final PUD. e. Wall signs of non-residential uses shall only be placed on the ground floor, exterior wall of the occupied tenant lease space, and/or a monument sign. f. Wall signs shall not be included in calculating the aggregate sign area on the lot if they meet the following outlined conditions: 1. Non-residential wall signs permitted by this section that do not exceed seven percent of the exterior wall area of the ground floor tenant lease space. 2. The sign is located on the exterior wall of the ground floor tenant lease space from which the seven percent sign area was derived. 3. No individual wall sign shall exceed 80 square feet in area. (4) Façade. The following façade design guidelines shall be applicable to all ground floor non-residential facades located in Zone BA: a. For street-facing facades, no more than 10% of total window and door area shall be glass block, mirrored, spandrel, frosted or other opaque glass, finishes or material including window painting and signage. The remaining 90% of window and door area shall be clear or slightly tinted glass, allowing views into and out of the interior. b. Visibility into the space shall be maintained for a minimum depth of three feet. This requirement shall not prohibit the display of merchandise. (5) Awnings. a. Awnings must be constructed of heavy canvas fabric, metal and/or glass. Plastic and vinyl awnings are prohibited. b. Backlit awnings are prohibited. Sec. 6. The contents of Planning Case File 15-11-S, 15-12-PUD and 15-13-VAC are hereby entered into and made part of the public hearing record and the record of decision for this case. Study Session Meeting of August 24, 2015 (Item No. 9) Page 7 Title: The Shoreham PUD Amendment Sec. 7. This Ordinance shall take effect fifteen days after its publication. Public Hearing August 19, 2015 First Reading September 8, 2015 Second Reading September 21, 2015 Date of Publication September 24, 2015 Date Ordinance takes effect October 9, 2015 Reviewed for Administration Adopted by City Council September 21, 2015 City Manager Mayor Attest: Approved as to Form and Execution: City Clerk City Attorney 13,822 SF 14% ZONE A ZONE B Study Session Meeting of August 24, 2015 (Item No. 9) Title: The Shoreham PUD Amendment Page 8 Meeting: Study Session Meeting Date: August 24, 2015 Written Report: 10 EXECUTIVE SUMMARY TITLE: Westwood Hills Nature Center Master Plan Update RECOMMENDED ACTION: The purpose of this report is to provide City Council an update of Westwood Hills Nature Center’s Master Plan Study that is about to commence. POLICY CONSIDERATION: None at this time. Please let staff know of any questions or concerns you may have. SUMMARY: Last year funding was allocated for the City to undertake a master planning process for the Westwood Hills Nature Center. After undertaking a Request for Proposal process, staff has selected the firm of Miller Dunwiddie Architecture, who will partner with SRF Consulting Group, Inc. The consultant will provide professional services related to the study and development of a comprehensive master plan for the Westwood Hills Nature Center. The master plan will serve the City as the vision, guiding principles, resource allocation and action plan to meet the identified needs of the community and to assist the City in planning for the future of the Westwood Hills Nature Center. The first step in the planning process will be the assessment of current facilities and programs we offer by collecting input through a public process including focus groups, surveys, open house meetings and interviews with staff, stakeholders and community members. This information will be utilized to help create a master plan. The master plan concept design for Westwood Hills Nature Center is scheduled to be completed in late November. A presentation of the findings will be presented to the City Council in December with updates along the way. FINANCIAL OR BUDGET CONSIDERATION: The project is budgeted at $50,000 and was approved in the 2015 budget. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. St. Louis Park is committed to being a leader in environmental stewardship. SUPPORTING DOCUMENTS: None Prepared by: Mark Oestreich, Manager of Westwood Hills Nature Center Jason T. West, Recreation Superintendent Reviewed by: Cindy S. Walsh, Director of Operations and Recreation Approved by: Tom Harmening, City Manager Meeting: Study Session Meeting Date: August 24, 2015 Written Report: 11 EXECUTIVE SUMMARY TITLE: Extension of Franchise Agreements with CenterPoint Energy and Xcel Energy RECOMMENDED ACTION: No action at this time. The purpose of this report is to inform the City Council of the upcoming extensions to the franchise agreements with CenterPoint Energy and Xcel Energy. POLICY CONSIDERATION: None at this time. SUMMARY: In 2013, the City Council adopted an extension to the franchise agreements with CenterPoint Energy and Xcel Energy. These agreements are set to expire on December 31, 2015. City staff has been in contact with both utilities regarding this upcoming deadline, and there is mutual interest in an extension. Passing an extension through the City Council and Public Utilities Commission takes approximately 5 months. City staff has expressed a desire to negotiate some changes to the agreements with the utilities, primarily with Xcel Energy, and has already begun discussions with them and the City Attorney. Because of these desired changes and the lengthy approval process, staff is proposing a 1 year extension to the current agreements, allowing for the proper negotiations on long-term agreements. Both utilities have agreed to this extension and share a mutual interest in coming to a long-term agreement. NEXT STEPS: Staff will bring these items back to the City Council on September 8, 2015 for the first reading, followed by the second reading on September 21, 2015. Staff will continue negotiations on long-term extensions. FINANCIAL OR BUDGET CONSIDERATION: The City’s Pavement Management Program is currently funded by franchise fee revenues, collected by both Xcel and CenterPoint. Based on the current fees, total franchise fees generate approximately $2.3 million annually (CenterPoint - $889,524; Xcel - $1,420,116). It is important to keep these agreements in place to insure continued funding of our pavement management initiative. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: None Prepared by: Steven Heintz, Finance Supervisor Debra Heiser, Engineering Director Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager