HomeMy WebLinkAbout2014/09/15 - ADMIN - Agenda Packets - City Council - Regular
AGENDA
SEPTEMBER 15, 2014
6:45 p.m. SPECIAL STUDY SESSION – Community Room
Discussion Items
1. 6:45 p.m. 40th Street and France Avenue Property
7:25 p.m. ECONOMIC DEVELOPMENT AUTHORITY -- Council Chambers
1. Call to Order
2. Roll Call
3. Approval of Minutes
3a. Economic Development Authority Meeting Minutes September 2, 2014
4. Approval of Agenda
5. Reports -- None
6. Old Business – None
7. New Business
7a. 2015 Preliminary HRA Levy Certification and Budget Adoption
Recommended Action: Motion to Adopt Resolution authorizing the proposed levy of a
special benefit levy pursuant to Minnesota Statutes Section 469.033, Subdivision 6, and
approval of the 2015 Preliminary HRA Levy and Budget for fiscal year 2015.
7b. Rochel Forbearance and Loan Modification Agreement
Recommended Action: Motion to approve the proposed Forbearance and Loan
Modification Agreement between the EDA andMary Jo and Thomas P. Rochel.
8. Communications -- None
9. Adjournment
7:30 p.m. CITY COUNCIL MEETING – Council Chambers
1. Call to Order
1a. Pledge of Allegiance
1b. Roll Call
2. Presentations
2a. Recognition of Donations
2b. 2014 Evergreen Awards
3. Approval of Minutes
3a. Study Session Minutes August 25, 2014
3b. Special Study Session Minutes September 2, 2014
Meeting of September 15, 2014
City Council Agenda
Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call
the Administration Department at 952/924-2525 (TDD 952/924-2518) at least 96 hours in advance of meeting.
4. Approval of Agenda and Items on Consent Calendar
NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which
need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a
Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular
agenda for discussion. The items for the Consent Calendar are listed on the last page of the Agenda.
Recommended Action: Motion to approve the Agenda as presented and items listed on the Consent Calendar; and to waive
reading of all resolutions and ordinances. (Alternatively: Motion to add or remove items from the agenda,
or move items from Consent Calendar to regular agenda for discussion.)
5. Boards and Commissions -- None
6. Public Hearings
6a. Smashburger On-Sale Wine and 3.2% Malt Liquor License
Recommended Action: Mayor to close public hearing. Motion to approve application
from Smashburger Acquisition Minneapolis, LLC, doing business as Smashburger
#1419, for an On-Sale Wine and 3.2 Malt Liquor License to be located at 8124 Highway
7, Unit #344, for a license term through March 1, 2015.
7. Requests, Petitions, and Communications from the Public -- None
8. Resolutions, Ordinances, Motions and Discussion Items
8a. 2015 Preliminary General Fund Budget, 2015 Preliminary Property Tax and 2015
Preliminary HRA Levies
Recommended Action:
Ÿ Motion to Adopt Resolution Approving 2015 General Fund Budget, 2015
Preliminary Property Tax Levy, and Setting Public Hearing Date for the 2015
Budget and Final Property Tax Levy.
Ÿ Motion to Adopt Resolution Authorizing the 2015 Preliminary HRA Levy.
9. Communications -- None
Meeting of September 15, 2014
City Council Agenda
CONSENT CALENDAR
4a. Adopt Resolution authorizing special assessment for the replacement of a water service
line.
4b. Adopt Resolution ending the hardship deferral for 2160 Ridge Dr. #25 and reinstating
the HIA special assessment on the tax rolls.
4c. Adopt Resolution establishing administrative fees for delinquent utility accounts
certified to Hennepin County.
4d. Approve Amendment No. 5 in the amount of $87,000 to Contract 13-12, originally in
the amount of $192,000 for 2014, with Summit Envirosolutions, Inc. for consultant
services related to the implementation of the Reilly Tar and Chemical Corporation
Remedial Action Plan.
4e. Adopt Resolution authorizing final payment in the amount of $31,860.41 and
accepting work for Project No. 2010-0005: France Avenue Improvements with G.L.
Contracting, Inc., City Contract No. 85-13.
4f. Adopt Resolution approving acceptance of a $350 donation from Cheryl Smith and
friends for the purchase and installation of a Hackberry tree in Jackley Park honoring
Gaye Lee Jensen.
4g. Approve for filing Environment & Sustainability Commission Minutes August 6,
2014.
St. Louis Park Economic Development Authority and regular City Council meetings are carried live on Civic TV cable channel
17 and replays are frequent; check www.parktv.org for the schedule. The meetings are also streamed live on the internet at
www.parktv.org, and saved for Video on Demand replays. The agenda is posted on Fridays on the official city bulletin board in
the lobby of City Hall and on the text display on Civic TV cable channel 17. The agenda and full packet are available by noon
on Friday on the city’s website.
Meeting: Special Study Session
Meeting Date: September 15, 2014
Discussion Item: 1
EXECUTIVE SUMMARY
TITLE: 40th Street and France Avenue Property
RECOMMENDED ACTION: No action at this time. This item is a continuation of the
discussion that occurred at the September 8 Study Session.
POLICY CONSIDERATION: None at this time.
SUMMARY: On September 8 the City Council discussed the recent correspondence from the
City of Minneapolis regarding the future of the property they own west of France Ave at 40th St.
Attached is the staff report for that meeting. Based on Council direction this item is being
brought back to the Council for further discussion.
The City Attorney will be present for the meeting.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable at this time.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: September 8 Staff Report
Prepared by: Tom Harmening, City Manager
Meeting: Study Session
Meeting Date: September 8, 2014
Discussion Item: 3
EXECUTIVE SUMMARY
TITLE: 40th Street and France Avenue Site
RECOMMENDED ACTION: For the Study Session Monday night staff will provide the
Council with detailed background information relating to this property, which is owned by the
City of Minneapolis and located in St. Louis Park and Edina, as a means to help inform future
discussions and decisions. Below are policy questions for the City Councils consideration. At
this time staff is not expecting or asking for definitive answers to these questions.
POLICY CONSIDERATION:
1. Does the City Council want to consider acquiring the property located in St. Louis Park for
development, or to keep it as park and open space?
2. Does the City Council want to consider rezoning the property to Park and Open Space?
3. Does the City Council want to consider acquiring a portion of the property for park and open
space purposes and allow a portion of it to be developed?
4. What are the expectations of the Council regarding public process with the adjoining
neighborhood?
5. What other information does the City Council need to assist with the decision making process?
SUMMARY: Mayor Jacobs recently received a letter from the Mayor of Minneapolis indicating
that the City has until November 15, 2014 to make a written offer on the property owned by
them and located on the west side of France Ave at 40th St. (see attached). A similar letter was
sent to the Edina Mayor. The City of Minneapolis first approached staff in September of 2013 to
advise that the property was being declared as excess and was to be sold. The property was
purchased in the 1920’s as part of the Minneapolis water system. The parcel is 14.3 acres in size.
The north 1/3 of the property is located in the City of St. Louis Park and the southern 2/3 is
located in the City of Edina.
The portion of the property in St. Louis Park is guided for Parks and Open Space land use in the
2030 Comprehensive Plan and zoned R1 single-family residence district. Generally speaking,
inconsistencies between Comprehensive Plan and zoning designations for a property should be
avoided.
The zoning allows the property to be subdivided for single-family residential development or
developed for other uses allowed in the R1 zoning district. The City of St. Louis Park could
consider amending the Zoning Map to include the property in the Parks and Open Space zoning
district to be consistent with the Comprehensive Plan land use designation. The potential impacts
of that approach should be discussed with the City Attorney.
FINANCIAL OR BUDGET CONSIDERATION: The city does not currently have money
budgeted for the purchase of this property.
SUPPORTING DOCUMENTS: Discussion
Site Location Map
Flood Plain Map
Letter from Minneapolis
Reviewed by: Cindy S. Walsh, Director of Operations and Recreation
Approved by: Tom Harmening, City Manager
Special Study Session Meeting of September 15, 2014 (Item No. 1)
Title: 40th Street and France Avenue Property Page 2
DISCUSSION
BACKGROUND: The City of Minneapolis has owned this property since the 1920’s. They
purchased it with the thought that they would need to use it as part of their water system. Other
than a pump station located off of France Avenue, there are no other buildings on the site.
A small portion of Minikahda Vista Park (the infield portion of the ball field) is located on the
property owned by the City of Minneapolis. We have a lease agreement with Minneapolis to use
the property as park. As a part of this discussion, staff recommends acquiring at least this portion
of this property so the park can continue to function in its current state.
In 2006, staff from St. Louis Park and Edina approached the City of Minneapolis about using a
portion of the site for an off-leash dog park. At that time, Minneapolis was not interested in
selling or leasing property to either city. In its current condition, the site is used as an unofficial
off-leash dog park along with other unsupervised activities.
PROPERTY ZONING: The property is guided for Parks and Open Space land use in the 2030
Comprehensive Plan and zoned R1 single-family residence district. Generally speaking,
inconsistencies between Comprehensive Plan and zoning designations for a property should be
avoided.
The zoning allows the property to be subdivided for single-family residential development or
developed for other uses allowed in the R1 zoning district. The City of St. Louis Park could
consider amending the Zoning Map to include the property in the Parks and Open Space zoning
district to be consistent with the Comprehensive Plan land use designation. The potential impacts
of that direction should be discussed with the City Attorney.
The City of Minneapolis shared two concept plans for subdividing the property, including the
adjoining parcel in the City of Edina, into a total of 27 single-family parcels. Approximately
seven of those single family residential lots fell within St. Louis Park.
There are 4.76 acres of the land within St. Louis Park. Based on the R1 zoning district minimum
lot area of 9,000 square feet, a yield of approximately four dwelling units per acre could be
achieved on an unimpeded site. The concept plans show fewer lots, because part of the land is
within the floodplain [Zone A, 1% annual chance (100-year)]. The concept plans also include
new roads and alleys.
The subdivisions shown in the concept plans would not likely be approved as proposed. Both
plans show new roadway intersections that do not align with roads to the east in Minneapolis.
One plan assumes Hennepin County would approve nine new driveways onto France Avenue
South. Both plans include cul-de-sacs, dead end streets, and intersections that may not meet City
standards. Neither plan indicates how or where storm water management would occur.
FLOOD PLAIN DESIGNATION: The Federal Emergency Management Agency Flood
Insurance Rate Map is in the process of being revised to reflect a Letter of Map Revision
(LOMR) in this area. The LOMR will be effective on December 29, 2014 and establishes the
flood elevation as 869.
It appears the concept plans submitted by the City of Minneapolis avoid the floodplain. The City
would not allow structures, fill, or other obstructions in the floodplain that would cause any
Special Study Session Meeting of September 15, 2014 (Item No. 1)
Title: 40th Street and France Avenue Property Page 3
increase in the stage of the 100-year flood or cause an increase in flood damages in the reaches
affected. If the proposed development did increase the flood stage, then compensatory flood
storage would be required within the reach affected and that storage would have to occur outside
the current floodplain boundary. In addition, the lowest floor level of structures proposed within
this area will be required to be a minimum of two feet above the flood elevation or 871.
The storm water management requirements for the proposed development would require the
applicant to include storm water phosphorus, volume and rate control. The most restrictive of
these requirements is a storm water treatment facility which would restrict the proposed 100-year
event discharge rate did not exceed the existing 10-year event discharge rate. Typically these rate
control requirements are met with the construction of storm water ponds, rain gardens or sub-
surface facilities.
Because the parcel includes low lying areas that are frequently wet, the city and Watershed
District would require wetland delineation preformed on the site. If wetlands are determined to
exist, there may be additional setbacks depending on the classification of the wetland.
While it is difficult to determine how many lots the property in St. Louis Park would yield if it
went through more complete engineering and the formal review process, a range of four to seven
lots seems to be possible at this time.
PROPERTY VALUE: The valuation question for a vacant parcel is dominated by three primary
issues, all of which relate to the highest and best use of the property:
1. The development likelihood of the property under zoning and comprehensive planning;
2. The development feasibility as dictated by cost/engineering issues related to platting and
infrastructure placement (utilities & streets); and,
3. The market analyses based on transactions in and around the locale which are
competitive to the subject of the appraisal to determine the economic feasibility.
In the case of the subject property, the City of Minneapolis engaged a third party appraisal in
2012 with this report having an effective date of April 15, 2013. This appraisal concluded the
total site as 14.3 acres of which 4.77 acres are located in St. Louis Park and 9.77 acres are
located in Edina. Terrain is rolling with significant portions within the flood plain – an updated
flood map was enclosed within the appraisal. Existing improvements are limited to the
Minneapolis pump station on the easterly site side directly west of the 40th Street corner.
Based on a platting concept plan, which was developed by Minneapolis, the appraisal reviewed
the site on the basis of platting for single-family development. A total of 27 lots were configured
in two options, both summarized as one (1) lot presumably maintained for the pump station site,
seven (7) development ready lots located in St. Louis Park and nineteen (19) development ready
lots in Edina. As the surrounding locale is predominantly already mature in development terms,
the appraisal report utilized comparable sales in nearby suburban locales (Eden Prairie,
Bloomington, Plymouth – 2 sites, and Maple Grove).
The appraisal report concluded a valuation of $54,000 per lot in the current raw state for a total
value conclusion of $1,458,000 as is. This equates to $432,000 for the St. Louis Park parcel area
(for 8 lots total versus the concept plan showing 7 actual net lots) and $1,026,000 for the Edina
parcel area (19 lots).
Special Study Session Meeting of September 15, 2014 (Item No. 1)
Title: 40th Street and France Avenue Property Page 4
ISSUES WITH THE CURRENT APPRASIAL: The appraisal assumes that the concept plan
is feasible in engineering and planning approval terms. The infrastructure placement costs
(streets & utilities) for the conceptual platting alternatives are not defined. This issue will play a
major role in market reaction should the parcels be offered for platting and development. These
studies are often best accomplished by a potential buyer relative to their development scenario.
Planning approval is likewise assumed in the report. The current zoning is single-family
residential and the comprehensive plan guides the site for open space which could create some
concern by the development community with the ability to obtain approvals. While
understandable in the context of the appraisal report analyses, these two assumptions create a
significant question as to the valuation conclusion. Staff feels that it would be more prudent to
review the market for finished lot sale transactions and then back into the raw value by refining
the platting/infrastructure cost estimations which are commonly employed in built-up location
valuation analyses.
While the site location and specific development possibility would clearly enjoy significant
market interest and likely multiple potential bidding responses, it is expected that any potential
bidder would very carefully review the feasibility of infrastructure cost estimations, platting and
planning approvals. It is also expected that if the City is interested in purchase, another third
party appraisal would be engaged given the purchase price.
NEXT STEPS: It is recommended that staff immediately send out a communication to residents
in the Minikahda Vista neighborhood advising them of the letter from Minneapolis and their
interest in disposing of the property. Additional public process seems appropriate as well and
staff would appreciate the City Councils thoughts on its expectations.
Another possible next step would be to conduct a joint meeting with the Edina City Council or
perhaps convene a committee made up of the Mayors or two councilmembers from each
community for purposes of insuring clear communication and coordination of efforts.
Staff from Community Development, Engineering, Assessing and Operations and Recreation
will be available at the meeting to assist in the discussion.
Special Study Session Meeting of September 15, 2014 (Item No. 1)
Title: 40th Street and France Avenue Property Page 5
EWING AVE SFRANCE AVE S41ST ST W
40TH ST W
39TH ST W
INGLEWOOD AVE39TH ST W
FRANCE AVE SINGLEWOOD AVE SCity of St. Louis Park
City of Edina City of St. Louis ParkCity of MinneapolisCalvin Christian
School
Minikahda Vista
Park
Weber Park Weber ParkPond
1 inch = 200 feet¯
Legend
City Boundaries
Parcels
Site Location Map
City of EdinaCity of Minneapolis3940 France Ave S
07-028-24-11-0001
07-028-24-14-0001
Special Study Session Meeting of September 15, 2014 (Item No. 1)
Title: 40th Street and France Avenue Property Page 6
EWING AVE SFRANCE AVE S41ST ST W
40TH ST W
39TH ST W
INGLEWOOD AVE39TH ST W
FRANCE AVE SINGLEWOOD AVE SCity of St. Louis Park
City of Edina City of St. Louis ParkCity of MinneapolisCalvin Christian
School
Minikahda Vista
Park
Weber Park Weber ParkPond
1 inch = 200 feet¯
Legend
City Boundaries
Floodplain (LOMR)
Parcels
Site Location Map
City of EdinaCity of Minneapolis3940 France Ave S
07-028-24-11-0001
07-028-24-14-0001
Special Study Session Meeting of September 15, 2014 (Item No. 1)
Title: 40th Street and France Avenue Property Page 7
Special Study Session Meeting of September 15, 2014 (Item No. 1)
Title: 40th Street and France Avenue Property Page 8
Meeting: Economic Development Authority
Meeting Date: September 15, 2014
Minutes: 3a
UNOFFICIAL MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINNESOTA
SEPTEMBER 2, 2014
1. Call to Order
Vice President Hallfin called the meeting to order at 7:29 p.m.
Commissioners present: Vice President Steve Hallfin, Tim Brausen, Jeff Jacobs, Susan Sanger,
and Jake Spano.
Commissioners absent: President Anne Mavity and Commissioner Gregg Lindberg.
Staff present: Executive Director (Mr. Harmening) and Recording Secretary (Ms. Hughes).
2. Roll Call
3. Approval of Minutes
3a. Economic Development Authority Meeting Minutes August 4, 2014
The minutes were approved as presented.
4. Approval of Agenda
The agenda was approved as presented.
5. Reports
5a. Approval of EDA Disbursements
It was moved by Commissioner Brausen, seconded by Commissioner Jacobs, to accept
for filing EDA Disbursement Claims for the period July 26 through August 22, 2014.
The motion passed 5-0 (President Mavity and Commissioner Lindberg absent).
6. Old Business - None
7. New Business - None
8. Communications - None
9. Adjournment
The meeting adjourned at 7:31 p.m.
______________________________________ ______________________________________
Secretary Vice President
Meeting: Economic Development Authority
Meeting Date: September 15, 2014
Action Agenda Item: 7a
EXECUTIVE SUMMARY
TITLE: 2015 Preliminary HRA Levy Certification and Budget Adoption
RECOMMENDED ACTION: Motion to Adopt Resolution authorizing the proposed levy of a
special benefit levy pursuant to Minnesota Statutes Section 469.033, Subdivision 6, and approval
of the 2015 Preliminary HRA Levy and Budget for fiscal year 2015.
POLICY CONSIDERATION: Does the EDA desire to continue to levy the full 0.0185% of
estimated market value allowable for HRA purposes of $953,238, which is an increase of $3,879
or approximately 0.41% from 2014? Or, does the City Council desire to certify less?
SUMMARY: This levy was originally implemented in St. Louis Park due to legislative changes
in 2001 which significantly reduced future tax increment revenues. The City Council elected at
that time to use the levy proceeds for future infrastructure improvements in redevelopment areas.
Thus far, some of the HRA Levy proceeds have been used to fund infrastructure studies,
analyses for future improvement projects and are currently paying for the City’s share of
Highway 7 and Louisiana. By law, these funds could also be used for other housing and
redevelopment purposes, but they are committed to funding Highway 7 and Louisiana until 2022
based on the current Long Range Financial Management Plan. Given the significant
infrastructure needs facing the City in the future, staff recommends the HRA Levy continue at
the maximum allowed by law for the 2015 budget year. The HRA Levy cannot exceed 0.0185%
of the estimated market value of the City. Therefore, staff has calculated the maximum HRA
Levy for 2015 to be $953,238 based on data from Hennepin County which is a $3,879 increase
or approximately 0.41% from the 2014 HRA Levy of $949,359. The EDA is allowed to
authorize the HRA levy and then forward this recommendation to the City Council. Council
action is required before certification, which is also scheduled to occur on September 15, 2014.
FINANCIAL OR BUDGET CONSIDERATION: The proposed levy will help support
infrastructure in redevelopment areas and possible affordable housing initiatives.
VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged
community.
SUPPORTING DOCUMENTS: Resolution
2015 HRA Levy Preliminary Budget
Prepared by: Brian A. Swanson, Controller
Reviewed by: Nancy Deno, Deputy City Manager/HR Director
Approved by: Tom Harmening, City Manager
Economic Development Authority Meeting of September 15, 2014 (Item No. 7a) Page 2
Title: 2015 Preliminary HRA Levy Certification and Budget Adoption
EDA RESOLUTION NO. 14 - ____
AUTHORIZING THE PROPOSED LEVY OF
A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES,
SECTION 469.033, SUBDIVISION 6 AND APPROVAL
OF A PRELIMINARY BUDGET FOR FISCAL YEAR 2015
WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.108 (the “EDA
Act”), the City Council of the City of St. Louis Park created the St. Louis Park Economic
Development Authority (the "Authority"); and
WHEREAS, pursuant to the EDA Act, the City Council granted to the Authority all of
the powers and duties of a housing and redevelopment authority under the provisions of the
Minnesota Statutes, sections 469.001 to 469.047 (the "HRA Act"); and
WHEREAS, Section 469.033, Subdivision 6, of the HRA Act permits the Authority to
levy and collect a special benefit levy of up to 0.0185 percent of estimated market value in the
City upon all taxable real property within the City; and
WHEREAS, the Authority desires to levy a special benefit levy in the amount of up to
0.0185 percent of estimated market value in the City for taxes payable in 2015; and
WHEREAS, pursuant to Minnesota Statutes, Section 275.065, the Authority is required
to adopt a proposed budget and a proposed tax levy and submit the same to the County Auditor
by September 15; and
WHEREAS, the Authority has before it for its consideration a copy of a proposed budget
for its operations for the fiscal year 2015 and the amount of the proposed levy for collection in
2015 shall be based on this budget and the long range financial management plan, subject to any
adjustments in the budget as finally approved prior to certification of the final special benefit
levy.
NOW THEREFORE, be it resolved by the Board of Commissioners of the St. Louis
Park Economic Development Authority:
1. The proposed budget of $953,238 for the operations of the Authority in fiscal year
2015, as presented for consideration by the City Council, is hereby in all respects approved,
subject to final approval by the Authority before certification of the tax levy under Minnesota
Statutes, Section 275.07.
2. Staff of the Authority are hereby authorized and directed to file the proposed
budget with the City in accordance with Minnesota Statutes, Section 469.033, Subdivision 6.
3. The proposed special benefit levy pursuant to Minnesota Statutes, Section
469.033, Subdivision 6, is hereby approved in a maximum amount equal to 0.0185 percent of
estimated market value in City of St. Louis Park, currently estimated to be $5,152,636,900 with
respect to taxes payable in calendar year 2014, subject to final approval by the Authority before
certification of the special benefit levy pursuant to Minnesota Statutes, Section 275.07.
Economic Development Authority Meeting of September 15, 2014 (Item No. 7a) Page 3
Title: 2015 Preliminary HRA Levy Certification and Budget Adoption
4. Staff of the Authority are hereby authorized and directed to seek the approval by
resolution of the City Council of the levy of special benefit taxes payable in 2015 and to take
such other actions as are necessary to bring before the Board the final budget and levy to be sent
to the county auditor on or before five working days after December 20, 2014.
Reviewed for Administration
Adopted by the Economic Development
Authority September 15, 2014
Executive Director President
Attest:
Secretary
Economic Development Authority Meeting of September 15, 2014 (Item No. 7a) Page 4
Title: 2015 Preliminary HRA Levy Certification and Budget Adoption
HRA Levy
2015 Preliminary Budget
September 15, 2014
2013 2014 2015
Actual Budget Proposed Budget
Revenues:
Property Tax Levy 899,390$ 949,359$ 953,238$
Market Value Homestead Credit 2 - -
Interest Income 14,029 4,221 -
Transfer In from Development Fund - 5,000,000 -
Total Revenue 913,421$ 5,953,580$ 953,238$
Expenditures:
Infrastructure Projects 3,552,017$ 5,220,000$ -$
Services and Other Charges 3,113 51,369 52,577
Transfer Out to Development Fund 250,000
Total Expenditures 3,555,130$ 5,271,369$ 302,577$
Beginning Fund Balance 1,324,666$ (1,317,043)$ (634,832)$
Net Change in Fund Balance (2,641,709)$ 682,211$ 650,661$
Ending Fund Balance (1,317,043)$ (634,832)$ 15,829$
Meeting: Economic Development Authority
Meeting Date: September 15, 2014
Action Agenda Item: 7b
EXECUTIVE SUMMARY
TITLE: Rochel Forbearance and Loan Modification Agreement
RECOMMENDED ACTION: Motion to approve the proposed Forbearance and Loan
Modification Agreement between the EDA and Mary Jo and Thomas P. Rochel.
POLICY CONSIDERATION: Does the EDA support the proposed Rochel Forbearance and
Loan Modification Agreement?
SUMMARY: As part of the land assemblage for the Excelsior & Grand project, the EDA
entered into a Settlement Agreement (including a Promissory Note) with Mary Jo Rochel
(formerly Mary Jo Rossi) in June 1999 in which the EDA agreed to loan Ms. Rochel $24,250 so
as to enable her to purchase a replacement dwelling and current “Property” at 3700 Colorado
Ave. S. in St. Louis Park. That Note was secured by a second mortgage on her Property, which
bore interest at 7% per annum simple interest and was to be repaid, together with accrued
interest, at the earlier of the following: (i) upon sale of the Property; or (ii) upon refinance of the
Property; or (iii) upon passage of 15 years from the date of the EDA Mortgage. The EDA
Mortgage allowed that no payments would be required until the Maturity Date. In 2003, Ms.
Rochel refinanced her first mortgage, triggering the Maturity Date under the Note and Mortgage,
but at her request, the EDA agreed not to enforce payment in full of the Note. The terms of the
Note and Mortgage remained in full force and effect.
On July 15, 2014 the Note matured. Ms. Rochel recently obtained a loan sufficient to allow her
to pay off the entire principal balance of $24,250, but insufficient to pay off the accrued interest
which has reached $25,486. A proposed Forbearance and Loan Modification Agreement has been
reached with Ms. Rochel in which the EDA would waive calling an event of default, cap the
accrued interest owed as of July 15 at $25,486 and forbear receipt of the accrued interest until the
Property is sold. Upon closing, the $25,486 shall be due the EDA. There is adequate equity in the
home for the EDA to expect repayment.
This is unique situation that required essentially a loan work-out solution. Any proposed
revisions to the terms of the original Mortgage and Note require formal approval by the EDA.
The proposed Agreement will be recorded with the property title.
FINANCIAL OR BUDGET CONSIDERATION: It is proposed that the EDA consider
capping the accrued interest owed on the original loan with Mary Jo Rochel and forego receipt of
the accrued interest until her current Property is sold at which time the entire $25,486 in accrued
interest shall be due and payable to the EDA.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Rochel Forbearance and Loan Modification Agreement
Prepared by: Greg Hunt, Economic Development Coordinator
Reviewed by: Michele Schnitker, Housing Supervisor
Kevin Locke, Community Development Director
Approved by: Tom Harmening, EDA Executive Director, and City Manager
Economic Development Authority Meeting of September 15, 2014 (Item No. 7b) Page 2
Title: Rochel Forbearance and Loan Modification Agreement
FORBEARANCE AND LOAN MODIFICATION AGREEMENT
This Forbearance and Loan Modification Agreement, dated as of September 15, 2014 (the
"Forbearance Agreement"), is by and between Mary Jo Rochel (formerly Mary Jo Rossi) and
Thomas P. Rochel, married to each other (together, the "Borrower"), and the St. Louis Park
Economic Development Authority (the "Authority"), as the holder of the Promissory Note dated
July 15, 1999, made by the Borrower (the “Note”).
RECITALS
A: The Authority is a public body, corporate and politic, and a political
subdivision of the State of Minnesota.
B. The Borrower and the Authority entered into a Stipulation of Settlement (the
“Stipulation”) dated June 1999, in connection with certain property located at 4900 38th Street
West subject to a condemnation proceeding by the Authority, pursuant to which, among other
things, the Authority agreed to loan to the Borrower the sum of $24,250 to finance a portion of
a replacement dwelling purchased by the Borrower and located at 3700 Colorado Avenue
South in the City of St. Louis Park (the “Replacement Dwelling”).
C. The Borrower made and delivered the Note pursuant to the Stipulation. The Note
provided that the principal amount of the Note, together with accrued interest at the rate of
7.0% per annum, was due and payable upon the earliest of (i) sale of the Replacement
Dwelling; (ii) refinancing of the Replacement Dwelling; or (iii) July 15, 2014 (the “Maturity
Date”).
D. The Note is secured by a mortgage (the “Mortgage”) dated July 15, 1999 and
recorded in the office of the Hennepin County Recorder on August 20, 1999, as document
number 7168192.
E. In 2003, the Borrower refinanced its first mortgage, triggering the Maturity Date
under the Note and Mortgage, but at the Borrower’s request, the Authority agreed not to
enforce payment in full of the Note. The terms of the Note and Mortgage remained in full
force and effect.
F. On July 15, 2014, the Note became due and payable pursuant to its terms.
G. The Borrower has requested, and the Authority has agreed, to modify certain
terms of the Note and Mortgage, and the parties have agreed upon the terms and conditions
under which the Authority will forbear from exercising the rights and remedies available to it
as a result of any events of default under the Note and Mortgage.
NOW, THEREFORE, in consideration of the mutual covenants contained in this Forbearance
Agreement, and other good and valuable consideration the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:
Section 1. Acknowledgments of Events. By its execution of this Forbearance
Agreement, the Borrower acknowledges that one or more events of default have occurred under the
Note and the Mortgage.
Economic Development Authority Meeting of September 15, 2014 (Item No. 7b) Page 3
Title: Rochel Forbearance and Loan Modification Agreement
Section 2. Authorization to Forbear/Waiver; Extension of Maturity Date. For purposes
of this Forbearance Agreement, the term "Forbearance Period" means the period of time
commencing on July 16, 2014, and ending on the date of sale of the Replacement Dwelling. The
Maturity Date of the Note and Mortgage shall be extended to the termination of the Forbearance
Period (the “Extended Maturity Date”). The Authority will forbear during the Forbearance Period in
the exercise of any remedies to which the Authority may be entitled by virtue of the existence of the
events of default as of the date hereof. The Authority’s waiver is specific to this paragraph and the
Authority retains all its rights and remedies relating to its ownership of the Note.
Section 3. Termination of Interest Accrual. The parties agree to terminate the accrual of
interest on the Note as of July 15, 2014.
Section 4. Payment in Full of Principal of Note. The Authority acknowledges receipt
from the Borrower of the full principal amount due and payable on the Note, which is the sum of
$24,250.
Section 5. Payment in Full of Accrued Interest on the Note. On the Extended
Maturity Date, the Borrower will pay all interest on the Note accrued to July 15, 2014, which is
the sum of $25,486.
Section 6. Modification of Mortgage. (a) Upon execution of this Forbearance
Agreement, the Borrower will deliver to the Authority a First Amendment to Mortgage in
substantially the form attached hereto as Exhibit A, in recordable form.
Section 7. Events of Default Under this Forbearance Agreement. Each of the following
will constitute a "Forbearance Agreement Event of Default:"
(a) failure of the Borrower to comply with or perform any provision of this
Forbearance Agreement;
(b) the material breach of any representation or covenant of the Borrower set forth in
this Forbearance Agreement in any material respect, or of any material misrepresentation in any
schedule, certificate, financial statement, report, notice, assignment or other writing furnished by
the Borrower to the Authority subsequent to the effective date of this Forbearance Agreement;
and
(c) the occurrence of any default under the Note or the Mortgage occurring after the
effective date hereof and not otherwise waived pursuant to this Forbearance Agreement.
Section 8. Remedies. The Borrower agrees that in the event of a Forbearance Agreement
Event of Default, all accrued interest on the Note will be immediately due and payable.
Section 9. Further Actions. Each of the parties agrees that it will take all actions and
execute and deliver all such documents as necessary to confirm and effectuate the transactions
provided for herein.
Section 10. Entire Agreement of the Parties. This Forbearance Agreement and the
documents referred to herein contain all of the terms and conditions agreed upon by the parties,
and no other agreements, oral or otherwise, regarding the Forbearance Period shall be deemed to
exist or bind any of the parties unless in writing and executed by the parties.
Economic Development Authority Meeting of September 15, 2014 (Item No. 7b) Page 4
Title: Rochel Forbearance and Loan Modification Agreement
Section 11. Amendments and Modifications. Amendments to, or modifications of, any
provision of this Forbearance Agreement will not be effective unless in writing and signed and
delivered by the parties.
Section 12. Notices. All notices required or permitted to be given hereunder must be in
writing and will be handled in the manner contemplated in the Note. Unless otherwise specified,
notices must be sent or delivered to the addresses set forth in the Note. The parties may from time to
time by notice in writing to the other parties designate a different address or addresses and
additional addresses for notice hereunder.
Section 13. Governing Document and Law. This Forbearance Agreement is a contract
made under the laws of the State of Minnesota, and, for all purposes, will be governed and
construed in accordance with the laws of the State of Minnesota. If there is any conflict between
any other document and this Forbearance Agreement, this Forbearance Agreement will govern.
Section 14. Successors and Assigns. This Forbearance Agreement will be binding
upon and shall inure to the benefit of the parties and their respective successors and assigns;
provided, however, that the Borrower may not assign any of its rights, duties or benefits set forth
in this Forbearance Agreement without the prior written consent of the Authority.
IN WITNESS WHEREOF, the parties have caused this Forbearance Agreement to be
executed and delivered as of the day first above written.
AUTHORITY:
By:______________________________________
President
By:______________________________________
Executive Director
BORROWER:
By: ____________________________________
By: ____________________________________
Economic Development Authority Meeting of September 15, 2014 (Item No. 7b) Page 5
Title: Rochel Forbearance and Loan Modification Agreement
EXHIBIT A
FIRST AMENDMENT TO MORTAGE
THIS INDENTURE made this _____ day of ___________, 2014, between Mary Jo Rochel
and Thomas P. Rochel, married to each other (“Mortgagor”) and the St. Louis Park Economic
Development Authority (the “Mortgagee”).
RECITALS
WHEREAS, the Mortgagor gave to the Mortgagee a Mortgage dated as of July 15, 1999,
filed in the Office of the Hennepin County Recorder on August 20, 1999 as Document No. 7168192
(the “Mortgage”); and
WHEREAS, the Mortgage secures a Promissory Note, dated July 15, 1999, made by
Mortgagor to Mortgagee (the “Note”); and
WHEREAS, the Mortgagor and Mortgagee have entered into a Forbearance Agreement of
even date herewith (the “Forbearance Agreement”), which agreement includes certain modifications
to the Note; and
WHEREAS, the Mortgagor and Mortgagee have agreed to amend the Mortgage as provided
herein.
NOW, THEREFORE, the Mortgagor agrees as follows:
1. The Mortgage remains in full force and effect as is not amended except as otherwise
specified herein.
2. The Mortgage shall terminate on the Extended Maturity Date as defined in the
Forbearance Agreement.
3. This is a mortgage amendment, as defined in Minnesota Statutes, Section 287.01,
subd. 2, and as such it does not secure a new or an increased amount of debt.
Economic Development Authority Meeting of September 15, 2014 (Item No. 7b) Page 6
Title: Rochel Forbearance and Loan Modification Agreement
IN WITNESS WHEREFOF, the Mortgagor has hereunto set its hand as of the date first above
written.
MORTGAGOR
By _______________________________
Mary Jo Rochel
By _______________________________
Thomas P. Rochel
STATE OF MINNESOTA )
) SS.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ___ day of September, 2014
by Mary Jo Rochel and Thomas P. Rochel, married to each other, the Mortgagor under this First
Amendment to Mortgage.
Notary Public
Drafted by:
Kennedy & Graven, Chartered (MNI)
470 U.S. Bank Plaza
Minneapolis, MN 55402
Meeting: City Council
Meeting Date: September 15, 2014
Presentation: 2a
EXECUTIVE SUMMARY
TITLE: Recognition of Donations
RECOMMENDED ACTION: Mayor to announce and give thanks and appreciation for the
following donation being accepted at the meeting and listed on the Consent Agenda:
From Amount For
Cheryl Smith & Friends $350 The purchase and installation of a Hackberry tree
in Jackley Park honoring Gaye Lee Jensen.
Prepared by: Debbie Fischer, Office Assistant
Approved by: Tom Harmening, City Manager
Meeting: City Council
Meeting Date: September 15, 2014
Presentation: 2b
EXECUTIVE SUMMARY
TITLE: 2014 Evergreen Awards
RECOMMENDED ACTION: The Mayor is requested to present the 2014 Evergreen Awards
to the following recipients:
• 3005 Kentucky Ave S –Christena Buttress (Lenox Neighborhood)
• 3137 Dakota Ave S –Debra & David Koefod (Lenox Neighborhood)
• 9117 Westmoreland Lane – Karen & Jon Woestehoff (Westwood Hills Neighborhood)
POLICY CONSIDERATION: None at this time.
SUMMARY: The Evergreen Award is presented each year in recognition of properties which
are uniquely designed with well-maintained landscapes with an emphasis on parcels that are
visible to the passerby. Businesses, apartments and houses are all eligible to receive the award.
The judges selecting the Evergreen Award recipients are comprised of staff that has a keen
interest in flowers, plants, landscaping and landscape design. There were five judges inspecting
this year’s nominations.
There were seven nominations this year spread throughout the City. Winners are presented with
an award certificate, a Dwarf Alberta Spruce tree and “Evergreen Award Winner” signs posted in
their boulevard for two weeks. Jim Vaughan, Environmental Coordinator, will be at the meeting
to present the awards to the three winners.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable.
VISION CONSIDERATION: St. Louis Park is committed to promoting an integrating arts,
culture and community aesthetics in all City initiatives, including implementation where
appropriate.
SUPPORTING DOCUMENTS: None
Prepared by: Stacy Voelker, Administrative Secretary
Jim Vaughan, Environmental Coordinator
Reviewed by: Cindy Walsh, Operations and Recreation Director
Approved by: Tom Harmening, City Manager
Meeting: City Council
Meeting Date: September 15, 2014
Minutes: 3a
UNOFFICIAL MINUTES
CITY COUNCIL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
AUGUST 25, 2014
The meeting convened at 6:39 p.m.
Councilmembers present: Mayor Jeff Jacobs, Tim Brausen, Steve Hallfin, Gregg Lindberg,
Anne Mavity, Susan Sanger, and Jake Spano.
Councilmembers absent: None.
Staff present: City Manager (Mr. Harmening), Deputy City Manager/Director of Human
Resources (Ms. Deno), Controller (Mr. Swanson), Finance Supervisor (Mr. Heintz), Director of
Operations & Recreation (Ms. Walsh), Director of Community Development (Mr. Locke),
Director of Inspections (Mr. Hoffman), Chief Information Officer (Mr. Pires), Director of
Engineering (Ms. Heiser), Police Chief (Mr. Luse), Fire Chief (Mr. Koering), City Assessor (Mr.
Bultema), Utilities Superintendent (Mr. Hall), Operations Superintendent (Mr. Hanson),
Communications & Marketing Coordinator (Mr. Zwilling), and Recording Secretary (Ms.
Hughes).
1. Future Study Session Agenda Planning – September 2 and 8, 2014
Mr. Harmening presented the proposed special study session agenda for September 2nd and the
proposed study session agenda for September 8th. He stated that Mr. Scott would be in
attendance at the September 2nd special study session to discuss resident complaints about the
Star Tribune Value Edition circulars and steps the City might take to stop unwanted delivery of
these circulars.
2. 2015 Budget, CIP and Utility Rates Discussion
Mr. Harmening presented the staff report and policy questions for Council consideration.
Ms. Deno stated that the five union contracts are closed for 2015 at 2.5% and staff recommends a
2.5% wage adjustment for all employee groups in 2015. She stated that an internal employee
group has met to review the employer contribution and staff will come back to Council with a
recommendation related to the 2015 employer contribution amount. She then reviewed the 2015
staffing requests submitted in the 2015 proposed budget.
Mr. Swanson reviewed the non-personnel requests included in the 2015 budget and advised that
staff is recommending a franchise fee increase in 2015 of $.75 per utility or $18 per year and this
$.75 increase would generate approximately $500,000 in the Pavement Management Fund. He
stated that staff has completed two iterations of the CIP and noted the CIP does not have funds
earmarked for a community center or projects related to Southwest LRT. He stated that staff
reviewed the City’s water service lines program per direction of Council and staff believes the
cost of this program can be absorbed within the recommended utility rates and stated the cost to
implement this program is approximately $210,000 per year and staff recommends moving
forward with the City accepting partial ownership of residential water service lines from the
water main to the curb stop beginning on January 1, 2015, with the implementation of a pilot
City Council Meeting of September 15, 2014 (Item No. 3a) Page 2
Title: Study Session Meeting Minutes August 25, 2014
program in 2015 and 2016. He stated that staff explored the possibility of having the City take
over snow plowing of all sidewalks and it is estimated to cost approximately $1.2 million to hire
a contractor to perform snow plowing of sidewalks, depending on the frequency of snow
removal required. He stated if the sidewalk snow removal were performed in-house, staff
estimates the cost at approximately $917,000 in the first year and $408,000 per year thereafter.
He noted that the addition of in-house snow plowing would require a 3.6% levy increase and a
4.4% levy increase if the City were to hire a contractor to perform this work. He reviewed the
2015 Preliminary Property Tax Levy and stated that property values for single-family homes
have increased approximately 5.6% for property taxes payable in 2015, property values for
condos have increased approximately 7.5%, and property values for apartments have increased
approximately 20%, with commercial/industrial property values remaining stable at .4% for pay
2015. He noted that while property values were declining the last several years, the City’s
commercial properties were holding their value and the commercial/industrial properties have
previously been paying more of the share of the property tax burden, however, as residential
values increase, the residential properties will be paying more of the property tax burden than in
the past few years. He stated the City’s fiscal disparities contribution in 2015 is approximately
$3.9 million or approximately $200,000 more than in 2014, adding that the City’s fiscal
disparities contribution is about 6% of the City’s total tax capacity. He advised that the 2015
budget proposes a 5.5% Property Tax Levy increase. The levy increase for 2014 was 3.5%. He
stated that the HRA levy is used for infrastructure needs throughout the community and staff
recommends continuing the maximum levy for 2015. He reviewed the Utility Funds and stated
in 2015, the City will be in its fifth year of a ten-year plan for increasing the fixed rate charges
for water to make sure the City is recouping its fixed costs and to reduce volatility in the system.
He stated that sewer rates are proposed to increase as the City moves into a more aggressive
infrastructure replacement plan, adding that one of the main drivers of this is the Met Council
MCES charge representing approximately $3.6 million. He stated that solid waste rates are
proposed to remain flat in 2015. He advised that more emphasis is being placed on storm water
management resulting in a need to increase rates over the next five years to meet increased
capital needs and debt service obligations. He stated that a typical homeowner would see an
increase in their utility bill of approximately $45 per year or approximately $4 per month,
representing a 4.6% increase in utility rates compared to 2014. He stated that Council would be
asked to approve the 2015 Preliminary Property Tax Levy and HRA Levy on September 15,
2014, with final adoption of the 2015 budget and 2015 Property Tax Levy and HRA Levy on
December 15, 2014.
Councilmember Mavity asked if the 2015 capital improvement budget includes funding for
sidewalks not originally included in the Connect the Park! program.
Mr. Harmening replied that the 2015 budget does not currently include funding for additional
sidewalks other than the 39th Street segment because staff needs to talk to Council about requests
received from residents to amend the Connect the Park! plan as well as to discuss a specific
policy for including additional sidewalks and who pays for the sidewalks.
Councilmember Mavity stated that Council has already had some policy discussion on this issue
and felt it was the will of Council to include more connections and she wanted to make sure there
was a budget in place to reflect that moving forward, even if it was a placeholder in the budget.
Mr. Harmening agreed to schedule a policy discussion with Council regarding this issue this fall.
City Council Meeting of September 15, 2014 (Item No. 3a) Page 3
Title: Study Session Meeting Minutes August 25, 2014
Councilmember Mavity urged the City to have a strategy in place for funding projects related to
Southwest LRT and felt the City should be very aggressive in securing as much land as possible
around Wooddale to make sure the City can guide and control that development. She also
questioned whether there was any possibility of using the HRA levy for affordable housing.
Councilmember Lindberg stated one of his primary concerns is to keep staff whole and making
sure that the City remains competitive in terms of compensation and benefits. He requested that
Council and staff continue to look at the 2015 staffing requests and remain cognizant of the
proposed increases in property taxes and fee structures. He expressed some concern about
having too much in the undesignated fund balance especially related to capital and felt if Council
is going to be making decisions on large purchases, it should be accountable project by project
rather than depending on a slush fund.
Councilmember Sanger stated she was fine with the proposed 5.5% Property Tax Levy increase
and proposed HRA levy increase as well as the proposed utility rate increases. She was
concerned about funding any staff positions with grant money given the uncertainty of future
grants. She asked about the wellness incentive benefit and what evidence the City has that it has
resulted in healthier employees.
Ms. Deno advised that the City has some data available on the wellness incentive program and
will bring this information to Council when the 2015 employee benefits are presented to Council.
Councilmember Sanger requested further information about the sidewalk snow removal program
and asked if the City would hire year-round or seasonal employees for this program. She
expressed continuing concern about the inequity in the current system of sidewalk snow removal
and stated her continued preference to have the City plow all sidewalks.
Mr. Harmening replied that full-time employees would be hired and not part-time seasonal
workers. He noted that this program would add approximately sixty miles of sidewalks to be
plowed and the City would have to hire people who are trained and competent, as well as
purchase equipment that costs approximately $100,000 a piece.
Councilmember Hallfin pointed out that Council previously reached consensus regarding
neighborhood and community sidewalks and indicated that Council may want to review a list
depicting community sidewalks and neighborhood sidewalks to see if any changes need to be
made.
Councilmember Brausen asked where the funding would come from for the affordable housing
strategies.
Mr. Harmening advised that funding would probably come from a variety of sources including
tax increment monies, the Development Fund, tax increment generated from specific projects, as
well as other funders. He added that the City could also consider using the HRA levy for
affordable housing.
Councilmember Brausen was supportive of the additional staffing requests and agreed that the
City should find dedicated funding sources to facilitate development related to Southwest LRT,
adding that the City has identified approximately $40 million worth of infrastructure
City Council Meeting of September 15, 2014 (Item No. 3a) Page 4
Title: Study Session Meeting Minutes August 25, 2014
improvements related to Southwest LRT. He also spoke in favor of the proposed change to the
water service lines program and proposed 5.5% levy increase and utility rate increases.
Councilmember Hallfin asked about the lights at Carpenter Park and whether this project would
be done at any time in the future. He also spoke in favor of the proposed 5.5% levy increase.
Ms. Walsh stated that this project is not in the current CIP and staff is hoping for a partnership
with the Baseball Association on this project.
Mayor Jacobs spoke in favor of the proposed 5.5% levy increase and felt that the 2015 budget
was on the right track.
Councilmember Sanger stated that Council will be receiving a report this fall from the
consultants regarding the schematic design on the possible community center and asked if
Council should include anyt hing in the 2015 budget if the decision is made to continue the
process for building a community center.
Mr. Harmening stated that the next phase is final design and this has not been included in the
capital plan. He stated the Park Improvement Fund could pay for final design work and
reimburse the fund through bonds issued if the project moves forward and indicated that staff
could research the cost further and include that amount in the CIP.
Mr. Swanson presented preliminary information regarding the City’s share of property taxes for
pay 2015 for a median value home and advised that a 5.5% levy adjustment would increase the
City’s share of property taxes by $72 for a 7.8% increase. He reminded Council that these
figures are very preliminary because Hennepin County has not yet supplied the numbers to the
City.
Ms. Deno advised that staff would continue preparing the 2015 budget using a 5.5% Property
Tax Levy with the goal of reducing this amount by the time the final property tax levy is adopted
in December.
It was the consensus of the City Council to certify the maximum HRA levy amount for the 2015
levy. It was also the consensus of the City Council to agree with the franchise fee adjustment
recommended by staff. It was also the consensus of the City Council to agree with the proposed
utility rate adjustment plans.
3. Water Meter Replacement Program
Mr. Heintz presented the staff report and advised the City has approximately 13,000 residential
water meters that are read by a meter reader who manually reads the majority of the meters and
the City’s commercial meters are read on a drive-by system. He advised that in 2013, the City
pumped over 350 million gallons of unbilled water representing lost revenue estimated at
$500,000 per year.
Ms. Deno advised that staff is recommending a fixed network system and stated if the City goes
to a monthly billing system in the future, a fixed network system could handle monthly billing,
adding that the cost for this program has been built into the City’s rate structure.
City Council Meeting of September 15, 2014 (Item No. 3a) Page 5
Title: Study Session Meeting Minutes August 25, 2014
Councilmember Sanger expressed support for the fixed network system and stated that water
conservation is an important element of this and catching leaks as soon as possible. She stated
she assumed that the City’s administrative costs would increase if the City goes to a monthly
billing system.
Councilmember Brausen supported the fixed network system and requested further policy
discussion about the City’s tiered pricing.
It was the consensus of the City Council to direct staff to move ahead with a program to replace
the City’s water meters with a fixed network system to collect readings.
Communications/Meeting Check-In (Verbal)
Mr. Harmening advised that Mayor Jacobs and the Mayor of Edina recently received a letter
from Minneapolis Mayor Hodges about the property owned by the City of Minneapolis at 40th
and France and the City of Minneapolis has indicated if it cannot strike a deal later this year, it
will place the property on the market with the intent to sell it to a developer. He stated that the
City of Edina’s position has been that it would be happy to take the property but would not pay
for it as the City of Edina considers the property an open space resource enjoyed by Edina, St.
Louis Park, and Minneapolis and that the City of Edina should not have to pay for property that
it is going to keep as open space. He stated that this item would be placed on the agenda for a
future study session.
The meeting adjourned at 8:52 p.m.
Written reports provided and documented for recording purposes only:
4. South Side of Excelsior Boulevard Study Update
5. 2014 Semi-Annual Housing Programs Activity Report
6. July 2014 Monthly Financial Report
7. Delinquent Utility Accounts
______________________________________ ______________________________________
Nancy Stroth, City Clerk Jeff Jacobs, Mayor
Meeting: City Council
Meeting Date: September 15, 2014
Minutes: 3b
UNOFFICIAL MINUTES
CITY COUNCIL SPECIAL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
SEPTEMBER 2, 2014
The meeting convened at 7:00 p.m.
Councilmembers present: Mayor Jeff Jacobs, Tim Brausen, Steve Hallfin, Gregg Lindberg
(participated via telephone), Susan Sanger, and Jake Spano.
Councilmembers absent: Anne Mavity.
Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Scott), Marketing &
Communications Coordinator (Mr. Zwilling), and Recording Secretary (Ms. Hughes).
1. Newspaper Circulars
Mr. Harmening presented the staff report and explained that beginning last year the City started
receiving complaints from residents about the unwanted delivery of the Star Tribune circulars
and City staff and the City Attorney met with a representative of the Star Tribune who explained
the process for delivery of these circulars and who was protective of the Star Tribune’s right to
deliver these circulars and the Star Tribune representative indicated they would do a better job of
delivering the circulars and notifying people about how they can opt out. He added the City sent
a postcard to residents in the 55426 zip code instructing them how to opt out and the City has
heard that even after opting out, residents are still receiving the circulars.
Councilmember Lindberg expressed concern about the lack of response on the part of the Star
Tribune after the City tried to work with them, as well as the Star Tribune’s lack of response to
residents. He agreed that the circulars represent littering and the circulars are unwanted trash in
the waste system.
Mr. Scott advised that he sent a letter in March to the Star Tribune that referenced two provisions
in the City’s ordinance regarding any sort of printed material delivered to someone’s home and if
a resident requests that it not be delivered or if the resident has a sign indicating they do not want
to receive solicitations and the publications are still delivered, the City has the right to declare a
nuisance and charge a misdemeanor violation of City Code. He stated it appears the persons
delivering the circulars are independent contractors so these persons would be the first defendant
and it is questionable whether the City can charge the Star Tribune. He added there is a
provision in the City’s ordinance that says any merchant who advertises in violation of the
ordinance can also be held liable and that provision seems to apply to this situation.
Mayor Jacobs asked if the City needed a test case to pursue a misdemeanor violation.
Councilmember Brausen stated he was worried about First Amendment implications.
Councilmember Spano stated if someone sends an email to the Star Tribune indicating they do
not want the circulars delivered anymore but they continue to be delivered, and the Star Tribune
indicates that they gave the delivery people the list of people not wanting the circulars, the City
should inform the Star Tribune that they are responsible for the database of opt outs, that they
City Council Meeting of September 15, 2014 (Item No. 3b) Page 2
Title: Special Study Session Minutes of September 2, 2014
hire the delivery people and are responsible for providing that opt out list to the delivery people,
and since the circulars are still being delivered, it appears the Star Tribune has a process problem
and that does not constitute a right to continue delivering the circulars.
Mr. Scott advised that the Bloomington City Attorney wrote a letter to the Star Tribune in which
she relayed the City Council’s frustration with the unwanted delivery of these circulars, that the
City of Bloomington was looking at options to address the issue and that the Star Tribune was
violating the Bloomington litter ordinance, and suggesting that they hire a contractor to pick up
the litter or collect its material and return it to the Star Tribune circulation manager. He advised
that the Star Tribune then agreed to deliver the circulars the same way they deliver newspapers
and to stop throwing them everywhere.
Councilmember Spano suggested that the City Attorney follow up with a letter to the Star
Tribune requesting some affirmative action to stop the unwanted delivery of these circulars and
indicating that the City would like to see a plan of action in writing addressing how the Star
Tribune is going to address this issue.
Councilmember Lindberg stated that this is an issue where residents are very upset with how
they have been treated in getting the Star Tribune to stop its delivery of these circulars. He felt
that if residents do not want the circulars, the Star Tribune is throwing trash on people’s property
and felt it was the City Council’s responsibility to take action on the issue.
Councilmember Sanger suggested that the City publish an article in Park Perspective
encouraging residents to get “no solicitation” signs.
It was the consensus of the City Council to follow up with the Star Tribune to request some
affirmative action on their part to address the issue. It was also the consensus of the City
Council to direct staff to further educate residents about using “no solicitation” signs and about
how to opt out of delivery of these circulars.
The meeting adjourned at 7:28 p.m.
______________________________________ ______________________________________
Nancy Stroth, City Clerk Jeff Jacobs, Mayor
Meeting: City Council
Meeting Date: September 15, 2014
Consent Agenda Item: 4a
EXECUTIVE SUMMARY
TITLE: Special Assessment - Water Service Line Replacements Project #2012-1000
RECOMMENDED ACTION: Motion to Adopt Resolution authorizing special assessment for
the replacement of a water service line.
POLICY CONSIDERATION: The proposed action is consistent with policy previously
established by the City Council.
SUMMARY: Property owners are given the option to petition the City to replace their water service
lines located within the city right of way as part of the Pavement Management Program. The costs for
this replacement can be assessed against their property in accordance with the City’s special
assessment policy.
Twenty three property owners requested this work be done in conjunction with the 2013 Local Street
Rehabilitation Project, City Project #2012-1000, as a cost saving measure for all involved. This work
was completed by the City’s contractor during the 2013 construction season. Based on the completed
work, these replacements qualify for the City’s special assessment program.
Only one property owner has chosen to utilize the special assessment option for this work. The
remaining 22 property owners have already submitted payment to the City for the work completed.
The owner, location, and total eligible cost of this work have been determined to be as follows:
PID Street Address,
St. Louis Park, Mn 55426 Cost
PID: 0711721440048 2912 TEXA TONKA AVE S $ 663.75
The City requires the repair or replacement of service lines to promote the general public health, safety
and welfare within the community. The special assessment policy for the repair or replacement of
water or sewer service lines for existing homes was adopted by the City Council in 1996. This
program was put into place because sometimes property owners face financial hardships when repairs
like this are required.
FINANCIAL OR BUDGET CONSIDERATION: The City has funds in place to finance the
cost of this special assessment.
VISION CONSIDERATION: Not applicable.
Attachments: Resolution
Prepared by: Jack Sullivan, Senior Engineering Project Manager
Reviewed by: Debra Heiser, Engineering Director
Brian Swanson, Controller
Approved by: Tom Harmening, City Manager
City Council Meeting of September 15, 2014 (Item No. 4a) Page 2
Title: Special Assessment - Water Service Line Replacements Project #2012-1000
RESOLUTION NO. 14-___
RESOLUTION AUTHORIZING THE SPECIAL ASSESSMENT
FOR THE REPLACEMENT OF VARIOUS WATER SERVICE LINES IN
ST. LOUIS PARK, MN
WHEREAS, the following Property Owner has petitioned the City of St. Louis Park to
authorize a special assessment for the replacement of their water service lines for their single
family residences; and
PID Street Address
St. Louis Park, Mn 55426
PID: 0711721440048 2912 TEXA TONKA AVE S
WHEREAS, this Property Owner have agreed to waive their right to a public hearing,
right of notice and right of appeal pursuant to Minnesota Statute, Chapter 429; and
WHEREAS, the City Council of the City of St. Louis Park has received a report from the
City Engineer, or designee, related to the replacement of these water service lines.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis
Park, Minnesota, that:
1. The petition from this Property Owner requesting their water service line be replaced by the
city and specially assessed to the property is hereby accepted.
2. These water service line replacements were done in conformance with the plans and
specifications approved by the Engineering Department and are hereby accepted.
3. The owner, location, and total eligible cost of this work have been determined to be as
follows:
PID Street Address
St. Louis Park, Mn 55426 Cost
PID: 0711721440048 2912 TEXA TONKA AVE S $ 663.75
4. This Property Owner has agreed to waive their right to a public hearing, notice and appeal
from the special assessment; whether provided by Minnesota Statutes, Chapter 429, or by
other statutes, or by ordinance, City Charter, the constitution, or common law.
5. This Property Owner has agreed to pay the City for the total cost of the above improvements
through a special assessment over a three (3) year period at the interest rate of 5.85 %.
City Council Meeting of September 15, 2014 (Item No. 4a) Page 3
Title: Special Assessment - Water Service Line Replacements Project #2012-1000
6. This Property Owner has executed an agreement with the City and all other documents
necessary to implement the replacement of their water service lines and the special
assessment of all costs associated therewith.
Reviewed for Administration: Adopted by the City Council September 15, 2014
City Manager Mayor
Attest:
City Clerk
Meeting: City Council
Meeting Date: September 15, 2014
Consent Agenda Item: 4b
EXECUTIVE SUMMARY
TITLE: HIA Resolution Ending Hardship Deferral for 2160 Ridge Dr. #25 & Reinstating the
Special Assessment
RECOMMENDED ACTION: Motion to Adopt Resolution ending the hardship deferral for
2160 Ridge Dr. #25 and reinstating the HIA special assessment on the tax rolls.
POLICY CONSIDERATION: None.
SUMMARY: The Sunset Ridge Condominium Housing Improvement Area (HIA) was
established in October 2009 to make common area improvements. The improvements included
replacement of exterior siding, windows, trim, entry doors, patio doors, soffits and fascia.
Garages were resided and new garage doors installed. Patios, decks and porches were replaced as
needed and water damage was remediated. Some lighting, minor electrical repairs and
miscellaneous vents, signs, and mail slots were replaced. Construction was completed in 2011.
The owner of the property at 2160 Ridge Drive #25 was granted a hardship deferral under
Minnesota Statutes 435.193 for the HIA special assessment in 2010 beginning in tax year 2011.
To qualify for a hardship deferral the resident’s household income must be at or below 50% of
the median area income, the resident must be 65 years of age or older or be a person with a
permanent and total disability, and they must own the homestead property. Hardship deferrals
remain on the property until the ownership changes or the owner no longer qualifies for the
deferral, at which time the deferred payments become due and payable. The property at 2160
Ridge Drive #25 was sold on December 19, 2013, at which time the property no longer qualified
for a hardship deferral. The seller paid the three years of deferred special assessment payments,
$3,227.88, at closing.
The HIA agreement between the City of St. Louis Park and Sunset Ridge does not allow for
early payment of any of the outstanding special assessments so the outstanding balance on the
assessment stays with the property. Hennepin County requires a resolution in order to place the
remaining special assessment balance back on the tax rolls. The annual special assessment
payment is $1,075.96 through 2030.
FINANCIAL OR BUDGET CONSIDERATION: Not applicable.
VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and
diverse housing stock.
SUPPORTING DOCUMENTS: Resolution
Prepared by: Marney Olson, Housing Programs Coordinator
Reviewed by: Michele Schnitker, Housing Supervisor
Approved by: Tom Harmening, City Manager
City Council Meeting of September 15, 2014 (Item No. 4b) Page 2
Title: HIA Resolution Ending Hardship Deferral for 2160 Ridge Dr. #25 & Reinstating the Special Assessment
RESOLUTION NO. 14-____
RESOLUTION APPROVING REMOVAL OF HARDSHIP DEFERRAL FOR 2160
RIDGE DRIVE #25 AND REINSTATING THE HOUSING INPROVEMENT AREA
SPECIAL ASSESSMENT ON THE TAX ROLLS
Property Tax Identification Number: 09-117-21-21-0354
WHEREAS, By Ordinance No. 2377-99 adopted October 19, 2009, the St. Louis Park
City Council (the “Council”) established Sunset Ridge Condominium Association Housing
Improvement Area in order to facilitate certain improvements (the “Improvements”) to the
property known as the Sunset Ridge Condominiums; and
WHEREAS, by Resolution No. 09-129 adopted October 19, 2009, the Council imposed
housing improvement fees on housing units in the Sunset Ridge Condominium Association
Housing Improvement Area in order to finance the Improvements; and
WHEREAS, Minnesota Statutes 435.193 through 435.195 provide for the deferment of
special assessments and specify the conditions under which municipalities are authorized, on a
voluntary basis to defer such assessments; and
WHEREAS, the City Council adopted Resolution Number 09-134 on October 19, 2009,
establishing the eligibility requirements for a deferral; and
WHEREAS, the City granted a hardship deferral to the owner at 2160 Ridge Drive #25;
and
WHEREAS, 2160 Ridge Drive # 25 was sold December 19, 2013, ending the hardship
deferral; and
WHEREAS, Hennepin County requires a Resolution to place the remaining balance of
the HIA on the tax rolls.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis
Park, Minnesota that removal of the hardship deferral and placing the remaining balance of the
outstanding special assessment for 2160 Ridge Drive #25 on the tax rolls is hereby approved.
Reviewed for Administration: Adopted by the City Council September 15, 2014
City Manager
Mayor
Attest:
City Clerk
Meeting: City Council
Meeting Date: September 15, 2014
Consent Agenda Item: 4c
EXECUTIVE SUMMARY
TITLE: Delinquent Utility Fee Resolution
RECOMMENDED ACTION: Motion to Adopt Resolution establishing administrative fees for
delinquent utility accounts certified to Hennepin County.
POLICY CONSIDERATION: Does the Council agree with the recommended policy changes
to 2014 delinquent account certification:
• New notification fee: A $15 administrative fee would be charged at the beginning of the
certification process to all accounts that are sent notification letters.
• Certification fee: The $30 administrative fee would be charged to all accounts with
balances not paid by the due date and subsequently certified to Hennepin County.
• New fee if certified for two consecutive years: An additional $75 administrative fee
would be charged starting the second consecutive year of certification.
SUMMARY: At the October 21, 2013 Public Hearing certifying delinquent accounts, the
Council expressed interest in the number of utility accounts that were certified on an annual
basis, and if there was anything that could be done to encourage customers to pay their bills more
timely. Council requested that a study session be scheduled to allow review of the process.
Staff presented information at the July 21, 2014 Council Study Session regarding delinquent
accounts and presented the Council with a number of options to consider. The Council directed
staff to explore charging an administrative fee to all delinquent accounts at the beginning of the
certification process, along with an administrative fee to all delinquent accounts that are
certified. Council also directed staff to explore adding an administrative penalty fee to accounts
that were certified for a second consecutive year. Information regarding these changes is
outlined in this report.
FINANCIAL OR BUDGET CONSIDERATION: By encouraging timely utility payments
before being certified, cash flow could be improved, thereby allowing utility rates to possibly be
adjusted less in the future.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Discussion
Sample Certification Letter
Resolution
Prepared by: Steven Heintz, Finance Supervisor
Reviewed by: Brian A. Swanson, Controller
Nancy Deno, Deputy City Manager/HR Director
Approved by: Tom Harmening, City Manager
City Council Meeting of September 15, 2014 (Item No. 4c) Page 2
Title: Delinquent Utility Fee Resolution
DISCUSSION
BACKGROUND: On October 21, 2013 the Council certified delinquent accounts and also
requested a study session on certification. On July 21, 2014, Council held a study session
regarding the current certification process and reviewed data from St. Louis Park and other cities.
In the past, fees were set at a one-time $30 administrative fee charged only at the end of the
certification process and only to accounts that were certified to Hennepin County. Each year,
there are approximately 1,700 accounts out of approximately 12,500 within the City that are put
into certification at the beginning of the process and notified via letter of the delinquent balance
and pending certification. Approximately half of these accounts that are notified pay the
delinquent balance prior to the due date, and are not charged any administrative fee, even though
the City incurs a fair amount of costs related to staff time and mailing of letters. After review of
information and discussion at the study session, Council requested staff to make changes to the
fee structure for certification. Staff is recommending the following changes for 2014
certification based on discussion on this topic at the July 21, 2014 Council Study Session.
• New notification fee: A $15 administrative fee would be charged at the beginning of the
certification process to all accounts that are sent notification letters. This is a new fee
that would be added at the initial stage of the process. If payment is made prior to
starting the certification process, no additional fees are charged.
• Certification fee: The $30 administrative fee would be charged to all accounts with
balances not paid by the due date and certified to Hennepin County. (In the past, this has
been the only administrative fee that has been charged in this process). Those that have
amounts certified would pay a total administrative fee of $45 ($15 initial notice fee plus
$30 certification fee = $45).
• New fee if certified for two consecutive years: An additional $75 administrative fee
penalty would be charged starting the second consecutive year of certification. The
property owner would have to pay the standard certification fees stated above of the $15
initial fee and $30 certification fee plus an additional $75 starting the second consecutive
year for a total of $120. This is based on Council discussion and data presented on the
number of accounts certified in each of the last three years. The data presented showed
that 343 accounts, or 43% of the accounts certified, were certified in each of the past
three years. At this time we are not recommending adding more than one level of
administrative penalties for nonconsecutive payment since it would require a fairly
significant amount of additional City staff time, as well as additional programming by the
City’s software vendor. Therefore, after considering the additional costs, staff
recommends adding just one level of administrative penalty fee of $75 that would start
the second consecutive year and continue. This fee only applies if there are consecutive
years of nonpayment.
Staff has received information from the Housing Program Coordinator on resources, such as non-
profits, that customers can contact for assistance if they are having trouble paying their bills.
Utility Billing staff will provide this information to these customers as they receive inquires on
delinquent balances.
NEXT STEPS: If the Council chooses to move forward with these policy changes, they would
be implemented for the 2014 certification process. An outline of that process is provided below.
City Council Meeting of September 15, 2014 (Item No. 4c) Page 3
Title: Delinquent Utility Fee Resolution
September 26th- Certification process begins and notification letters are sent to all accounts with
a delinquent balance over $150 ($30 for finalled accounts) as of August 21, 2014. An
administrative fee of $15 would be charged to these accounts. Staff has prepared additional
information along with the letters to explain these policy changes.
October 20th- Public Hearing before City Council and adoption of Resolution Certifying
Delinquent Accounts.
October 31st- Certification due date. Last day for payments to be made on delinquent accounts.
November 3rd- 7th. The second administrative fee of $30 is applied to all accounts still in
certification. In addition, all accounts being certified for the second consecutive year would
receive an additional $75 administrative penalty fee. After applying these fees, the accounts
would be written off in the utility billing system and sent to Hennepin County for collection with
the 2015 property taxes. These accounts are then charged interest at a rate of 5.85% for 13
months, for an effective interest rate of 6.34%.
City Council Meeting of September 15, 2014 (Item No. 4c) Page 4
Title: Delinquent Utility Fee Resolution
5005 Minnetonka Blvd
St. Louis Park, MN 55416-2216
Date of Notice: October 1, 2014
Mailing Address Line 1
Mailing Address Line 2
Mailing Address Line 3
Mailing Address Line 4
Mailing Address Line 5
Mailing Address Line 6
RE: Charges Owed: For Delinquent Utility Account:
Service Address: Service Address
Delinquent Amount: Current WO Balance
Account Number: Account Number
Customer Number: Customer Number
Property I.D. Number: Tax Roll Numeric
Dear: Customer Name
The City of St. Louis Park encourages its customers to remain current in the payment of their bills. When
accounts become delinquent, according to Minnesota law, they may be certified to Hennepin County to
be collected with property taxes payable in the next year.
City of St. Louis Park records show this account was delinquent as of September 18, 2014. By receiving
this letter, this account has been moved into certification, and has received an administrative charge of
$15.00. The $15 administrative charge is not reflected in the delinquent amount above. In an effort to
avoid the account from being certified to the property taxes, the City is requesting that payment in full plus
the $15 administrative fee be received at City Hall by Friday, October 31, 2014 at 4:30 p.m. If payment in
full is not received by that date and time, the outstanding delinquent amount, plus an additional
administrative fee of $30.00, and interest at an annual rate of 5.85% for 13 months will be sent to
Hennepin County for collection with the property taxes in 2015 (total administrative fee is $45). If this
account was certified in the prior year, a $75 administrative penalty fee will also be assessed to the
account (total administrative fee is $120).
The City Council will consider final action on all delinquent accounts at a public hearing during the regular
Council meeting on Monday, October 20, 2014 at 7:30 p.m. in the Council Chambers. A written appeal
may be presented to the Council at that time or appeals may be made to Brian Swanson - Controller,
5005 Minnetonka Blvd., St. Louis Park, MN 55416. The City would like to avoid the certification process,
as it adds additional costs to all parties.
Please feel free to contact Utility Billing at (952) 924-2111 if you have questions regarding this notice.
Payments may be made via cash, check, or credit card in person at City Hall, by mailing a check to City
Hall, or paying by credit card at https://eub.stlouispark.org. Payments cannot be accepted over the
phone due to payment card industry guidelines protecting customer’s financial information. For
those customers who use eBill, please check your “junk” email folder if that address is not on your safe
senders list.
Thank you for your prompt attention to this matter.
Brian Swanson
Controller
City Council Meeting of September 15, 2014 (Item No. 4c) Page 5
Title: Delinquent Utility Fee Resolution
RESOLUTION NO. 14-____
RESOLUTION ESTABLISHING ADMINISTRATIVE FEES AND PENALTY
FOR CERTIFICATION OF DELINQUENT UTILITY ACCOUNTS
TO HENNEPIN COUNTY
WHEREAS, the City Council has heretofore taken an interest in the number of delinquent
utility accounts certified to Hennepin County on an annual basis; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis
Park that a $15 administrative fee be charged to all delinquent utility accounts receiving a letter at the
beginning of the certification process, a $30 administrative fee be charged to all delinquent utility
accounts certified to Hennepin County, and a $75 administrative penalty fee be charged to all
delinquent utility accounts certified to Hennepin County for the second consecutive year and beyond.
Reviewed for Administration: Adopted by the City Council September 15,2014
City Manager Mayor
Attest:
City Clerk
Meeting: City Council
Meeting Date: September 15, 2014
Consent Agenda Item: 4d
EXECUTIVE SUMMARY
TITLE: Amend Contract No. 13-12 with Summit Envirosolutions to Increase 2014 Reilly
Consultant Services
RECOMMENDED ACTION: Motion to approve Amendment No. 5 in the amount of $87,000
to Contract 13-12, originally in the amount of $192,000 for 2014, with Summit Envirosolutions,
Inc. for consultant services related to the implementation of the Reilly Tar and Chemical
Corporation Remedial Action Plan.
POLICY CONSIDERATION: Does the City Council have any questions regarding the
proposed contract amendment?
SUMMARY: On February 6, 2012 the City entered into a contract, in the amount of $167,000,
with Summit Envirosolutions, Inc. for consultant services related to the implementation of the
Reilly Tar & Chemical Corporation (“Reilly”) Remedial Action Plan (RAP). That contract was
based on a mutually agreed upon work plan and projected expenses (by task) to be performed.
Unfortunately, predicting agency concerns and the associated costs necessary to satisfy them has
been extremely difficult. As such, the following amendments have been required over the life of
the contract:
• No. 1 was approved Nov 30, 2012 increasing the 2012 amount to $214,000.
• No. 2 was approved Dec 17, 2012 authorizing 2013 consultant services for $162,500.
• No. 3 was approved Oct 21, 2013 increasing the 2013 amount to $236,000.
• No. 4 was approved Dec 16, 2013 authorizing 2014 consultant services for $192,000 (a
three-year contract total of $642,000).
To date, Summit’s approximate 2014 expenses totaled $181,907. Due to unexpected EPA/MPCA
requirements, staff is recommending the 2014 contract amount be increased by $87,000 for a
revised 2014 total of $279,000. The increase is due to additional consulting services,
groundwater sampling, laboratory coordination, and project management expenses related to
modifying the Consent Decree / Remedial Action Plan (CD/RAP).
FINANCIAL OR BUDGET CONSIDERATION: The Water Utility Fund pays all Reilly
expenses and will be utilized to pay for this additional work.
VISION CONSIDERATION: St. Louis Park is committed to being a leader in environmental
stewardship. We will increase environmental consciousness and responsibility in all areas of city
business.
SUPPORTING DOCUMENTS: Discussion
Revised Cost Estimate
Contract Amendment
Prepared by: Mark Hanson, Superintendent of Public Works
Reviewed by: Cindy Walsh, Director of Operations and Recreation
Approved by: Tom Harmening, City Manager
City Council Meeting of September 15, 2014 (Item No. 4d) Page 2
Title: Amend Contract No. 13-12 with Summit Envirosolutions to Increase 2014 Reilly Consultant Services
DISCUSSION
BACKGROUND: Last year, under the direction of the City Manager, staff made a concerted
effort to push the Agencies toward updating the CD/RAP pollutant criteria with the end goal of
the cessation of pumping in the upper groundwater aquifers. Unfortunately, this push has been
met with significant resistance from the Agencies. In turn, the City Manager has enlisted the legal
services of Lockridge, Grindal, Nauen to assist staff in developing a stronger technical argument.
The resulting technical inquiries from the Agencies have driven up the annual monitoring costs.
A brief summary of the tasks and additional services/costs are described below:
Task 100 - Annual Report: This task is expected to be $5,000 under budget.
Task 150 - Annual Progress Report: This task is expected to be $1,000 under budget.
Task 400 - Ground Water Monitoring: This task is expected to be $10,000 over budget.
Agency comments on the 2014 Sampling Plan required collecting more samples than
were originally planned.
Task 480 -Sampling Plan and QAPP: This task is expected to be $6,000 over budget.
Each year this budget item is intended to cover the cost to prepare the plans for the
subsequent calendar year, due for submittal each October 31. Agency comments to date
on the 2014 Plan have resulted in higher than expected costs. The 2015 plan is still in
development.
Task 600 - Lab Coordination and Audit: This task is expected to be $64,300 over
budget. Additional Agency requested samples and data auditing combined with the
unexpected need to purchase new sampling equipment have resulted in significantly
higher sampling costs than originally planned for 2014.
Task 700 - RAP Renegotiation/Site Closure Activities: This task is expected to be
$6,000 under budget. Subtask 1, Cessation Request Follow-up, has been delayed to 2015
due to the revised schedule associated with using Lockridge, Grindal, Nauen.
Task 810 – Program Management and Miscellaneous: This task is expected to be
$19,000 over budget. The scope of this task depends on the amount of communications
with the Agencies and the number of “miscellaneous” items that arise during the course
of the year. Despite our best intentions to hold down costs and match historical budgeted
amounts, 2014 has brought significant Agency data requests resulting from our ongoing
push to modify the CD-RAP.
The attached spreadsheet provides detailed monthly charges by task associated with the Summit
Envirosolutions, Inc. contract along with original budget amounts and projected budget amounts
needed to complete this year’s contract work.
PRESENT CONSIDERATIONS: We have had a great working relationship with Summit
Envirosolutions, Inc. and recommend continuing to work with them.
NEXT STEPS: A potential 2015 - 2017 contract with Summit Envirosolutions, Inc. will be
brought to the Council in December. In addition, Council will be provided an update before the
end of the year on where things stand on the steps the City has taken to amend/update the
Consent Decree and Response Action Plan
City Council Meeting of September 15, 2014 (Item No. 4d) Page 3
Title: Amend Contract No. 13-12 with Summit Envirosolutions to Increase 2014 Reilly Consultant Services
Table 1. Revised Estimated Project Costs
Task Description
Original
Estimated
Cost
Approximate
Costs to Date
Revised
Estimated
Cost
Task 100 - 2013 Annual Monitoring Report $25,000 $17,183 $20,000
Task 150 - 2014 Progress Report and GAC Plant
Report $3,000 $1,650 $2,000
Task 400 - Groundwater Monitoring and Sample
Shipment $46,000 $28,538 $56,000
Task 480 - 2015 Sampling Plan and QAPP $7,000 $6,000 $13,000
Task 600 - Laboratory Coordination $56,000 $77,640 $120,000
Task 700 - Site Closure (Cessation Activities) $30,000 $20,929 $24,000
Task 810 - Project Management and Miscellaneous $25,000 $29,967 $44,000
Total estimated costs $192,000 $181,907 $279,000
City Council Meeting of September 15, 2014 (Item No. 4d) Page 4
Title: Amend Contract No. 13-12 with Summit Envirosolutions to Increase 2014 Reilly Consultant Services
CITY OF ST. LOUIS PARK
AMENDMENT NO. 5 to CONTRACT NO. 13-12
THIS AGREEMENT is made on September 15, 2014, by and between the CITY OF
ST. LOUIS PARK, Minnesota, a Minnesota municipal corporation (hereinafter referred to as
“City"), and SUMMIT ENVIROSOLUTIONS, INC., a Minnesota corporation (hereinafter
referred to as "SUMMIT").
1. BACKGROUND. The parties have previously entered into an agreement for consulting
services dated February 6, 2012. Amendment No. 4 to this Agreement (December 16,
2013) authorizes Summit services in the amount of $192,000 for calendar year 2014.
2. CONTRACT AMOUNT. Subject to the modifications set forth herein, the Agreement is
increased an additional $87,000 to a maximum contract amount of $279,000 for calendar
year 2014.
IN TESTIMONY WHEREOF, the patties hereto have caused this Agreement to be
executed by their respective duly authorized officers.
IN TESTIMONY WHEREOF, the parties hereto have caused this Agreement to be executed
by their respective duly authorized officers.
Reviewed for Administration Adopted by the City Council September 15, 2014
City Manager Mayor
Attest: Summit Envirosolutions, Inc.
By_________________________________
City Clerk
Its__________________________________
By _________________________________
Its__________________________________
Meeting: City Council
Meeting Date: September 15, 2014
Consent Agenda Item: 4e
EXECUTIVE SUMMARY
TITLE: Approve Final Payment for Project 2010-0005 - France Avenue Improvements - City
Contract No. 85-13
RECOMMENDED ACTION: Motion to Adopt Resolution authorizing final payment in the
amount of $31,860.41 and accepting work for Project No. 2010-0005: France Avenue
Improvements with G.L. Contracting, Inc., City Contract No. 85-13.
POLICY CONSIDERATION: Not applicable
SUMMARY: On July 1, 2013, the City Council awarded a contract in the amount of
$469,688.68 to G.L. Contracting, Inc. for improvements along France Avenue from 26th Street
W. up to 22nd Street in Minneapolis. This work included a 6 foot boulevard style concrete
sidewalk on the west side of France avenue, roadway narrowing along the west side, lane
narrowing for north and south bound traffic, narrow striped shoulders that preclude on street
parking, new curb and gutter and upgrades to the city owned street lighting. The Contractor
completed this work within the contract time allowed at a final contract cost of $478,019.10.
FINANCIAL OR BUDGET CONSIDERATION:
Final Contract Cost
The cost of the work performed by the Contractor under Contract No. 85-13 has been calculated
as follows:
Original Contract Price $ 469,688.68
Quantity Underruns -14,505.20
Change Orders 22,835.62
Final Contract Amount $ 478,019.10
Previous Payments $ 446,158.69
Balance Due $ 31,860.41
Funding Source
This project was included in the City’s adopted Capital Improvement Program (CIP) for
construction in 2013. This project was funded by a combination of Sidewalk and Trails funds,
Utility Maintenance funds (storm sewer) and Capital Replacement funds.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: Resolution
Prepared by: Jack Sullivan, Senior Engineering Project Manager
Reviewed by: Debra Heiser, Engineering Director
Approved by: Tom Harmening, City Manager
City Council Meeting of September 15, 2014 (Item No. 4e) Page 2
Title: Approve Final Payment for Project 2010-0005 - France Ave. Improvements - City Contract No. 85-13
RESOLUTION NO. 14-____
RESOLUTION AUTHORIZING FINAL PAYMENT
AND ACCEPTING THE WORK FOR THE
FRANCE AVENUE IMPROVEMENTS PROJECT
CITY PROJECT NO. 2010-0005
CONTRACT NO. 85-13
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of St. Louis
Park, Minnesota, as follows:
1. Pursuant to a written contract with the City dated July 1, 2013, G.L. Contracting, Inc. has
satisfactorily completed the France Avenue Improvements Project, as per Contract No. 85-13.
2. The Engineering Director has filed her recommendations for final acceptance of the work.
3. The work completed under this contract is accepted and approved. The final contract cost is
$478,019.10.
4. The City Manager is directed to make final payment in the amount of $31,860.41 on the
contract, taking the contractor's receipt in full.
Reviewed for Administration: Adopted by the City Council September 15, 2014
City Manager Mayor
Attest:
City Clerk
Meeting: City Council
Meeting Date: September 15, 2014
Consent Agenda Item: 4f
EXECUTIVE SUMMARY
TITLE: Accept Donation from Cheryl Smith and Friends
RECOMMENDED ACTION: Motion to Adopt Resolution approving acceptance of a $350
donation from Cheryl Smith and friends for the purchase and installation of a Hackberry tree in
Jackley Park honoring Gaye Lee Jensen.
POLICY CONSIDERATION: Does the City Council wish to accept the gift with restrictions
on its use?
SUMMARY: State statute requires City Council’s acceptance of donations. This requirement is
necessary in order to make sure the City Council has knowledge of any restrictions placed on the
use of each donation prior to it being expended.
Cheryl Smith and friends graciously donated $350 for the purchase and installation of a
Hackberry tree. The donation is given with the restriction that the tree be placed in Jackley Park
honoring Gaye Lee Jensen.
FINANCIAL OR BUDGET CONSIDERATION: This donation will be used to purchase and
plant a tree, October 2014, in Jackley Park.
VISION CONSIDERATION: St. Louis Park is committed to being a leader in environmental
stewardship. We will increase environmental consciousness and responsibility in all areas of city
business.
SUPPORTING DOCUMENTS: Resolution
Prepared by: Stacy M. Voelker, Administrative Secretary
Reviewed by: Cindy Walsh, Director of Operations & Recreation
Approved by: Tom Harmening, City Manager
City Council Meeting of September 15, 2014 (Item No. 4f) Page 2
Title: Accept Donation from Cheryl Smith and Friends
RESOLUTION NO. 14-____
RESOLUTION APPROVING ACCEPTANCE OF DONATION
IN THE AMOUNT OF $350
TO PURCHASE AND INSTALL A TREE
IN JACKLEY PARK HONORING GAYE LEE JENSEN
WHEREAS, The City of St. Louis Park is required by State statute to authorize
acceptance of any donations; and
WHEREAS, the City Council must also ratify any restrictions placed on the donation by
the donor; and
WHEREAS, Cheryl Smith and friends donated $350 to purchase and install a Hackberry
tree in Jackley Park honoring Gaye Lee Jensen; and
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of St. Louis
Park that the gift is hereby accepted with thanks to Cheryl Smith and friends with the
understanding that it must be used to purchase and install a tree in Jackley Park.
Reviewed for Administration Adopted by the City Council September 15, 2014
City Manager Mayor
Attest:
City Clerk
Meeting: City Council
Meeting Date: September 15, 2014
Consent Agenda Item: 4g
MINUTES
ENVIRONMENT AND SUSTAINABILITY COMMISSION: SUSTAINABLE SLP
ST. LOUIS PARK, MINNESOTA
August 6, 2014
Community Room, City Hall
MEMBERS PRESENT: Chris Anderson, Terry Gips, Caitlin Glennon, Rachel Harris, Tom
Hillstrom, Cindy Larson O’Neil, Alex Sundvall, Judy Voigt, Whitney Thesing and Rene
McGarvey
MEMBERS ABSENT: Ryan Griffin
STAFF PRESENT: Phillip Elkin, Nicole Pribbenow
GUESTS PRESENT: Judith Moore
1. The meeting was called to order at 6:33 p.m.
2. The minutes of the July 9, 2014, meeting were amended by Rachel Harris to include the
statement, “Chairperson Harris made motion to have commissioners work with City Staff
to develop sustainability-themed questions for the upcoming city-wide survey”
Commissioner Anderson moved that the minutes be approved as amended. Motion was
seconded by Commissioner Hillstrom and approved by the Commission unanimously.
3. Guest Presentation – Judith Moore spoke to the commission on the use of pesticides and
herbicides in city parks and on city lawns and fields. She distributed Material Data
Safety Sheets on a variety of herbicides readily available in hardware and landscaping
stores such as Lowes and Home Depot. She handed out current State and City codes
regarding the use of herbicides and pesticides. She cited research on the toxicity of these
ingredients and the “cocktail compound effect” of combining the ingredients. Her goal is
to increase public awareness and pursue the City to take a more aggressive stand on
regulating the use of these products.
a) Create a response plan for complaints or inquiries about the ingredients and/or
effects of the exposure to these products.
b) Require all vendors in town to make material data sheets available prior to being
able to do business in the City.
c) Require applicators (such as TruGreen, Scotts, city parks etc.) to use signage before
applying chemicals for lawn and turf treatment.
d) Challenge State Statutes 18.2 to regulate the use and distribution of herbicide and
pesticide products.
Commissioner Harris thanked her for her commitment and supported her in her effort.
4. Old Business
City Council Meeting of September 15, 2014 (Item No. 4g) Page 2
Title: Environment and Sustainability Commission: Sustainable SLP Meeting Minutes of August 6, 2014
Nicole Pribbenow, Communications Specialist with the City of St. Louis Park,
presented the final three logo recommendations submitted by the branding work group.
She walked through the decision process and cited examples of other cities which were
the inspiration for the designs presented to the commission. Each of the commissioners
where asked their thoughts on the logos. The commissioners discussed the merits of each
design and selected their favorites.
Two logos were selected as the favorites, one having a circular shape and the other a
rectangular shape. Commissioner Gips suggested that since a square logo and
rectangular shaped logos would be needed for the various media uses, both logos be used.
Nicole was given the direction to make adjustments in the colors, remove the x from the
round logo and return next meeting with a final logo.
Commissioner Tom Hillstrom led the next discussion on the communications plan
submitted at the last meeting. He pointed out that, while it was a thorough, well
thought out plan, the deadlines and work involved seemed too aggressive for the
Commission to meet. At the previous meeting, each commissioner was asked to prepare
10 ideas for content and forward them to the Sustainable SLP Brand Work Group. None
of the commissioners responded. Because of the time and effort involved, Tom
suggested that the Commission focus on one element of the communications plan at a
time. He went on to say that developing a website after the logo was selected seemed to
be the most logical step. He suggested that the staff could set new deadlines in the plan,
which reflected the ability of the group. Rachel asked Nicole what the staff understood
by “providing content”? Nicole responded that since the commissioners where the
“experts” on both the topics and details, that the commissioners would provide the
information to be distributed, and the communication staff would make clerical edits.
Rachel asked if other commissions have to provide their own content or if staff provides
content. Rachel stated that she believed that City staff provided content for the Connect
the Park website and publications. She went on to state that the Commission needed
more direction in their role of preparing material.
Commissioner Gips led the next discussion on a proposal to conduct Sustainability
Workshops. Terry presented a proposal on behalf of the Education/Behavior Change
Workgroup to hold several introductory workshops on sustainability which would be
open to the public. One would be held in the southern part of the city (Rec Center) and
one in the northern part (Aquila Elementary). The plan includes two night workshops
and one at noon, possibly at a Chamber of Commerce or Rotary lunch. These workshops
would be followed up with full workshops. This proposal is in jeopardy due to a conflict
of interest. Access to the public through his involvement in the ESC would be an unfair
advantage-since Commissioner Gips’ consulting business also provides information on
the subject.
Commissioner Harris asked what would be covered in the training and was told that the
“Natural Steps” program would be covered. Commissioner Glennon suggested that the
presentations should be streamed online. Commissioner Harris commented that the
group had not explored other sustainability programs other than the Natural Step and
asked whether the group was comfortable using that approach. Commissioner Hillstrom
added that while the Natural Step offers a great philosophical approach, he found that it
took too long to get to the point, and that attendees of short programs may lose patience
with the program. He suggested that the presentations be written to “get to the point.”
City Council Meeting of September 15, 2014 (Item No. 4g) Page 3
Title: Environment and Sustainability Commission: Sustainable SLP Meeting Minutes of August 6, 2014
5. Old Business:
Work Groups submitted brief summaries of activities:
a. GreenStep Cities - Rene McGarvey reported that the group was waiting for the
staff presentations to be completed and that they would be pursuing a meeting
with Phil to discuss a strategy.
b. Education/Behavior Change- Terry reported that the group had met with Jim
Vaughan to promote stewardship through projects such as buckthorn removal and
the Master Water Gardener program, in conjunction with the Sean Gosiewski of
the Alliance for Sustainability. The group would like to start a program to
“empower champions” and get involved in programs such as Earth Day 2015,
National Night Out and with the local schools.
c. Energy – Cindy Larson O’Neil presented the group’s progress. The group was
working on disseminating City data on energy use to see where the best and most
effective use of their energy would be placed. The group now has scheduled
monthly meetings on the last Wednesday of each month in the Minnehaha Room
at City Hall. Trying to locate and connect with partners who already have
effective programs in place such as Excel Outreach.
d. Preferred Purchasing was presented by Rachel Harris. The group has completed
meeting with staff and is in the process of drafting a policy for the City to adopt
as an ordinance. They hope to have this proposal in front of Council by the end of
the year.
6. The meeting was adjourned at 8:33 p.m.
Meeting: City Council
Meeting Date: September 15, 2014
Public Hearing Agenda Item: 6a
EXECUTIVE SUMMARY
TITLE: Smashburger On-Sale Wine and 3.2% Malt Liquor License
RECOMMENDED ACTION: Mayor to close public hearing. Motion to approve application
from Smashburger Acquisition Minneapolis, LLC, doing business as Smashburger #1419, for an
On-Sale Wine and 3.2 Malt Liquor License to be located at 8124 Highway 7, Unit #344, for a
license term through March 1, 2015.
POLICY CONSIDERATION: Does the Council wish to approve the liquor license for
Smashburger Acquisition Minneapolis, LLC?
SUMMARY: The City received an application from Smashburger Acquisition Minneapolis
LLC, dba Smashburger #1419, for an On-Sale Wine and 3.2 Malt Liquor License. The
restaurant establishment will be located at 8124 Highway 7, Unit #344, within the Knollwood
Mall properties. The premise consists of approximately 2,366 square feet, with dine-in and patio
seating. The restaurant will be open seven days a week from 10:00 a.m. to 10:00 p.m.
Smashburger Acquisition Minneapolis, LLC, owns and operates 292 restaurants worldwide, 10
of which are in Minnesota. The CEO/President of Smashburger Acquisition Minneapolis, LLC,
is Scott Crane. Jason Ledman will be the on-site manager of the restaurant, overseeing daily
operations.
The Police Department has run a full background investigation, and nothing was discovered
during the course of this investigation that would warrant denial of the license. The application
and police report are on file in the City Clerk’s office, should Council members wish to review
the information. The required notice of the public hearing was published September 4, 2014.
Should Council approve the liquor license, no actual license is issued until all required
compliance is met with the City Inspections Department and the State Alcohol and Gambling
Enforcement Division.
FINANCIAL OR BUDGET CONSIDERATION: Fees for this applicant include $500 for the
police background investigation and $2,750 for the On-Sale Wine and 3.2% Malt Liquor yearly
license fee.
VISION CONSIDERATION: Not applicable.
SUPPORTING DOCUMENTS: None
Prepared by: Kay Midura, Office Assistant – City Clerk’s Office
Reviewed by: Nancy Stroth, City Clerk
Nancy Deno, Deputy City Manager/HR Director
Approved by: Tom Harmening, City Manager , City Manager
Meeting: City Council
Meeting Date: September 15, 2014
Action Agenda Item: 8a
EXECUTIVE SUMMARY
TITLE: 2015 Preliminary General Fund Budget, 2015 Preliminary Property Tax and 2015
Preliminary HRA Levies
RECOMMENDED ACTION:
• Motion to Adopt Resolution Approving 2015 General Fund Budget, 2015 Preliminary
Property Tax Levy, and Setting Public Hearing Date for the 2015 Budget and Final
Property Tax Levy.
• Motion to Adopt Resolution Authorizing the 2015 Preliminary HRA Levy.
POLICY CONSIDERATION:
• Does the City Council desire to set the 2015 Preliminary Property Tax Levy at
$26,985,377 which is an increase of $1,407,469 or approximately 5.50% over the 2014
Final Property Tax Levy?
• Does the City Council desire to continue to levy the full 0.0185% of estimated market
value allowable for HRA purposes of $953,238 which is an increase of $3,879 or
approximately 0.41% from 2014, to assist in paying for infrastructure needs in
redeveloping areas?
• Does the City Council desire to hold the Truth in Taxation Public Hearing at the Regular
City Council meeting on Monday December 1, 2014 and then adopt the 2015 Budgets,
2015 Final Property Tax Levy, 2015 Final HRA Levy, and 2015 – 2024 Capital
Improvement Plan at the Regular City Council Meeting on Monday December 15, 2014?
SUMMARY: Included is information pertaining to the 2015 Budget and 2015 Preliminary
General Property Tax and HRA levies. In addition, a proposed calendar of related budget and
tax levy dates is shown.
FINANCIAL OR BUDGET CONSIDERATION: The proposed tax levies will help support
necessary city services to be provided during 2015.
VISION CONSIDERATION: All vision areas are taken into consideration and are an
important part of the budgeting process. St. Louis Park is committed to being a connected and
engaged community.
SUPPORTING DOCUMENTS: - Discussion
- Resolution Approving 2015 Preliminary Budgets, Tax Levy
& Public Hearing Date
- Resolution Authorizing Preliminary HRA Levy for 2015
Prepared by: Brian A. Swanson, Controller
Reviewed by: Nancy Deno, Deputy City Manager/HR Director
Approved by: Tom Harmening, City Manager
City Council Meeting of September 15, 2014 (Item No. 8a) Page 2
Title: 2015 Preliminary General Fund Budget, Preliminary Property Tax & Preliminary HRA Levies
DISCUSSION
BACKGROUND: On June 23, 2014, staff met with the City Council to discuss the 2015
Budget Process. Council agreed that staff should follow recommendations from the “2015
Budget Production Guidelines” when preparing the 2015 Budget. Assumptions for the 2015
Budget included a pattern similar to past years; 1) a levy increase, 2) modest increase in other
fees and charges where appropriate to fit with business costs, 3) maintain high quality and
responsive service delivery, 4) hold expenditures flat where possible with adjustments for some
modest growth based on essential business needs, 5) funding for a wage and benefit contribution
increase, 6) utility rate increases, and 7) continued long range financial planning.
At the August 25, 2014 City Council Study Session, the City Council reviewed information from
the staff report and subsequently directed staff to prepare a 2015 Preliminary Property Tax Levy
increase of 5.50% when compared to the 2014 Final Property Tax Levy. In addition, the City
Council directed staff to proceed with preparing the 2015 Preliminary HRA Levy at the
maximum allowed by state statute, due to the significant infrastructure projects currently in
progress and scheduled per the 2015 – 2024 Capital Improvement Plan. Council also directed
staff to proceed with franchise fee and utility rate adjustments, which will both be brought back
later this year for approval, in order to take effect in 2015.
2015 Preliminary Property Tax Levy
As the City Council considers the 2015 Preliminary Property Tax Levy, there are some important
items to keep in mind:
• There are no levy limits in place for 2015.
• 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 $512,466 in 2015. These dollars
go into the Capital Replacement Fund.
• Trends in Valuations and Possible Property Tax Implications - For the 2014 assessment
that 2015 property taxes are based on, St. Louis Park’s market value increased by 6.2%
with all of the dominant property types increasing in value. Composition of the change is
summarized as +5.6% for single-family homes, +7.5% for condos and townhomes,
+20.2% for apartments (significant new construction coming on line) and a stable
commercial-industrial sector at +0.4%. As can be surmised by the above figures, there
will be a shift of the property tax burden to the residential owners for the Pay 2015 taxes.
• Fiscal Disparities – The City’s net tax capacity contribution increased by $208,991 or
approximately 5.7% for 2015. The City is a net contributor to the pool of $3,879,478, or
approximately 5.9% of the City’s total tax capacity for 2015.
• Funding challenges in several funds impacting long-term sustainability which will be
discussed later this fall.
• As in past years, the 2015 Preliminary Property Tax Levy adopted by the City Council on
September 15, 2014, can be decreased, but cannot be increased after that date.
2014 City Final Levy and 2015 Preliminary Levy
A synopsis of prior year levy information and the 2015 Proposed Preliminary Levy is shown below:
1. The 2014 Final Levy was $25,577,908, which was 3.50% or $864,967 more than 2013.
City Council Meeting of September 15, 2014 (Item No. 8a) Page 3
Title: 2015 Preliminary General Fund Budget, Preliminary Property Tax & Preliminary HRA Levies
2. The 2015 Preliminary Property Tax Levy range staff recommends is proposed at
$26,985,377, which is approximately 5.50% or $1,407,469 more than the 2014 Final Levy.
The proposed breakdown of the Preliminary Property Tax Levy by fund is shown below:
2014 2015 Dollar Change Percent Change
Final Preliminary From 2014 From 2014
TAX CAPACITY BASED TAX LEVY
General Fund $21,157,724 $22,564,509 1,406,785$ 6.65%
Debt Service 1,422,477 1,423,161 684 0.05%
Capital Replacement Fund 1,342,700 1,342,700 - 0.00%
Park Improvement Fund 810,000 810,000 - 0.00%
Cap. Replace. Fund - Future Debt Service 645,007 645,007 - 0.00%
Employee Administration Fund 200,000 200,000 - 0.00%
TOTAL TAX LEVIES $25,577,908 $26,985,377 $1,407,469 5.50%
Fiscal Disparities
The City received its final figures regarding fiscal disparities, and as stated earlier, for 2015 the
City will be a net contributor of $3,879,478, which is $208,991, or approximately 5.7% more
than 2014’s net contribution of $3,670,487. Being a net contributor to the fiscal disparities pool
reduces the City’s overall net tax capacity, thereby resulting in a higher tax rate for property
owners in St. Louis Park. The City has seen significant increases in its net contribution to the
fiscal disparities pool over the last 5 years related to the development and redevelopment of its
commercial sector of property. This significant activity resulted in nearly steady or slight
increases in the overall valuation of the commercial sector of property in St. Louis Park. As
many other participants in the fiscal disparities program saw declines in the valuation of their
commercial property sector, St. Louis Park then held a larger share of the commercial sector
market related to the fiscal disparities pool, and as such, was required to contribute a larger share
to the program. This means that St. Louis Park fared much better during this economic turndown
than many of the other participants in the fiscal disparities program, which is why the City’s net
contribution has increased significantly over the last 5 years.
HRA Levy
This levy was originally implemented in St. Louis Park due to legislative changes in 2001 which
significantly reduced future tax increment revenues. The City Council elected at that time to use
the levy proceeds for future infrastructure improvements in redevelopment areas. Thus far, some
of the HRA Levy proceeds have been used to fund infrastructure studies, analyses for future
improvement projects and are currently beginning to pay for the City’s share of Highway 7 and
Louisiana. By law these funds could also be used for other housing and redevelopment purposes,
but they are committed to funding Highway 7 and Louisiana until 2022 based on the current
Long Range Financial Management Plan. Given the significant infrastructure needs facing the
City in the future, particularly transportation infrastructure needs, staff recommends the HRA
Levy continue at the maximum allowed by law for the 2015 budget year. The HRA Levy cannot
exceed 0.0185% of the estimated market value of the City. Therefore, staff has calculated the
maximum HRA Levy for 2015 to be $953,238 based on data from Hennepin County which is a
$3,879 increase or approximately 0.41% from the 2014 HRA Levy of $949,359.
City Council Meeting of September 15, 2014 (Item No. 8a) Page 4
Title: 2015 Preliminary General Fund Budget, Preliminary Property Tax & Preliminary HRA Levies
ADDITIONAL TAX LEVY INFORMATION
By law, the City Council must approve a 2015 Preliminary Property Tax Levy. These
preliminary levies must then be sent to Hennepin County for certification in September.
Hennepin County will mail out parcel specific notices to taxpayers in mid-November. Final
action on the 2015 Budget, 2015 Final City Property Tax Levy, Final 2015 HRA Levy, and 2015
– 2024 CIP will not occur until December.
SETTING DATES FOR PUBLIC HEARING AND 2014 BUDGET ADOPTION
Legislative requirements changed five years ago in regard to Truth in Taxation public hearings
that usually occur in December. The requirement to publish and hold a special public hearing
separate from adopting the final tax levy was repealed in 2009. For that reason, the City Council
could hold the public hearing and adopt the tax levy on the same night. Past practice has been to
hold the public hearing and then at the subsequent meeting adopt the final budget. If the City
Council chooses to continue this practice, then the dates would be the regular City Council
meetings of December 1, 2014 for the Truth in Taxation Public Hearing and December 15, 2014
for adoption of the 2015 Budget, 2015 Final Levy adoption for the City and HRA levies, and
adoption of the 2015 – 2024 Capital Improvement Plan.
NEXT STEPS: As the 2015 budget process continues, the following preliminary schedule
snapshot has been developed for Council:
October 13 Review and discussion of 2015 budget, CIP, utility rates and LRFMP.
Directors or their designees present as needed.
October 20 Adoption of 2015 Utility Rates.
November 10 (If necessary) Final budget or CIP discussion prior to Truth in Taxation
Public Hearing and budget presentation.
December 1 Truth in Taxation Public Hearing and budget presentation
December 8 (If necessary) Continuation of Public Hearing and any budget discussion.
December 15 Council adopts 2014 Revised Budget, 2015 Budgets, final tax levies (City
and HRA), and 2015 - 2024 CIP.
Staff will continue to review budget and capital information, and subsequently update the Long
Range Financial Management Plan during the upcoming months. The City Council has the
option of decreasing the 2015 Preliminary Property Tax Levies for the City and HRA after the
initial certification; however it cannot be increased.
In the coming weeks staff will also be bringing back to the City Council for discussion more
information about the budget, CIP and Long Range Financial Management Plan
City Council Meeting of September 15, 2014 (Item No. 8a) Page 5
Title: 2015 Preliminary General Fund Budget, Preliminary Property Tax & Preliminary HRA Levies
RESOLUTION NO. 14-____
RESOLUTION APPROVING 2015
PROPOSED GENERAL FUND BUDGET,
2015 PRELIMINARY PROPERTY TAX LEVY,
AND SETTING PUBLIC HEARING DATE FOR THE
2015 BUDGET AND FINAL PROPERTY TAX LEVY
WHEREAS, The City of St. Louis Park is required by Charter and State law to approve a
resolution setting forth an annual tax levy to the Hennepin County Auditor; and
WHEREAS, Minnesota Statutes require approval of a preliminary property tax levy and
a preliminary budget on or before September 30th of each year; and
WHEREAS, the City Council has received the proposed budget document;
NOW THEREFORE BE IT RESOLVED by the City Council of the City of St. Louis
Park, that the Preliminary 2015 Budget shall be as follows:
2015
Preliminary
General Fund Revenues:
Property Taxes $22,564,509
Other General Revenues 10,131,198
Total General Fund Revenues $32,695,707
Expenditures:
General Government $ 7,444,373
Engineering 1,409,695
Operations and Recreation 9,634,841
Public Safety 14,016,798
Non-Departmental 190,000
Total General Fund Expenditures $32,695,707
BE IT FURTHER RESOLVED that the Truth in Taxation Public Hearing will be held
on December 1, 2014; and
BE IT FURTHER RESOLVED that the City Council of the City of St. Louis Park,
Hennepin County, Minnesota, that the following sums of money be levied for collection in 2015
upon the taxable property in said City of St. Louis Park for the following purposes:
City Council Meeting of September 15, 2014 (Item No. 8a) Page 6
Title: 2015 Preliminary General Fund Budget, Preliminary Property Tax & Preliminary HRA Levies
2015
Preliminary
TAX CAPACITY BASED TAX LEVY Levy
General Fund $22,564,509
Debt Service Funds 1,423,161
Capital Replacement Fund 1,342,700
Park Improvement Fund 810,000
Cap. Replace. Fund - Future Debt Service 645,007
Employee Administration Fund 200,000
TOTAL TAX LEVIES $26,985,377
And
BE IT FURTHER RESOLVED that the Controller is hereby authorized and directed to
transmit this information to the County Auditor of Hennepin County, Minnesota and the
Minnesota Department of Revenue, if applicable, in the format requested as required by law.
Reviewed for Administration Adopted by the City Council September 15, 2014
City Manager Mayor
Attest:
City Clerk
City Council Meeting of September 15, 2014 (Item No. 8a) Page 7
Title: 2015 Preliminary General Fund Budget, Preliminary Property Tax & Preliminary HRA Levies
RESOLUTION NO. 14-____
RESOLUTION AUTHORIZING THE PRELIMINARY HRA LEVY FOR 2015
WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.108 (the “EDA
Act”), the City Council of the City of St. Louis Park created the St. Louis Park Economic
Development Authority (the "Authority"); and
WHEREAS, pursuant to the EDA Act, the City Council granted to the Authority all of
the powers and duties of a housing and redevelopment authority under the provisions of the
Minnesota Statutes, sections 469.001 to 469.047 (the "HRA Act"); and
WHEREAS, Section 469.033, subdivision 6 of the Act authorizes the Authority to levy a
tax upon all taxable property within the City to be expended for the purposes authorized by the
HRA Act; and
WHEREAS, such levy may be in an amount not to exceed 0.0185 percent of estimated
market value of the City; and
WHEREAS, the Authority has filed its budget for the special benefit levy in accordance
with the budget procedures of the City in the amount of $953,238; and
WHEREAS, based upon such budgets the Authority will levy all or such portion of the
authorized levy as it deems necessary and proper;
NOW THEREFORE BE IT RESOLVED by the St. Louis Park City Council:
1. That approval is hereby given for the Authority to levy, for taxes payable in 2015,
such tax upon the taxable property of the City as the Authority may determine, subject to the
limitations contained in the HRA Act.
Reviewed for Administration: Adopted by the City Council September 15, 2014
City Manager Mayor
Attest:
City Clerk