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HomeMy WebLinkAbout2014/07/28 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA JULY 28, 2014 (Councilmember Spano Out) 6:30 p.m. CITY COUNCIL STUDY SESSION – Community Room Discussion Items 1. 6:30 p.m. Future Study Session Agenda Planning – August 18, 2014 2. 6:35 p.m. Outdoor Refrigerated Ice Feasibility Study 3. 7:20 p.m. Redevelopment Proposal for the Former Bally Total Fitness Block 4. 8:05 p.m. Meeting with Congressman Ellison 8:20 p.m. Communications/Meeting Check-In (Verbal) 8:25 p.m. Adjourn Written Reports 5. June 2014 Monthly Financial Report 6. Second Quarter Investment Report (April – June 2014) 7. Project Update - Sanitary Sewer Project (MCES Hopkins Interceptor Rehabilitation) 8. Update on Pop-Up Event 9. Cable TV Franchise Fee Compliance Auditor Selected Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call the Administration Department at 952/924-2525 (TDD 952/924-2518) at least 96 hours in advance of meeting. Meeting: Study Session Meeting Date: July 28, 2014 Discussion Item: 1 EXECUTIVE SUMMARY TITLE: Future Study Session Agenda Planning – August 25, 2014 RECOMMENDED ACTION: The regularly scheduled Study Session on August 11 has been cancelled. The City Council and the City Manager to set the agenda for the next regularly scheduled Study Session on August 25, 2014. POLICY CONSIDERATION: Does the Council agree with the agenda as proposed? SUMMARY: At each study session approximately five minutes are set aside to discuss the next study session agenda. For this purpose, attached please find the proposed discussion items for the Study Session on August 25, 2014. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Future Study Session Agenda Planning – August 25, 2014 Prepared by: Debbie Fischer, Office Assistant Approved by: Nancy Deno, Deputy City Manager/HR Director Study Session Meeting of July 28, 2014 (Item No. 1) Page 2 Title: Future Study Session Agenda Planning – August 25, 2014 Study Session, August 11, 2014 – CANCELLED Special Study Session, August 25, 2014 – 6:30 p.m. – Community Room Tentative Discussion Items 1. Future Study Session Agenda Planning – Administrative Services (5 minutes) 2. 2015 Budget, CIP & Utility Rates – Administrative Services (60 minutes) Staff will provide information on 2015 budget requests, Tax Levies, Franchise Fees and Utility Rates in preparation for setting the preliminary levy in September. Department Directors or their designee will be available for questions and discussion on any changes Council would like incorporated. 3. South Side Excelsior Blvd Design Guidelines Update – Community Development (45 minutes) The Task Force for this study is wrapping up its work after 6 meetings. At the Study Session, staff and the consultant will present the draft design guidelines developed with the community Task Force. Staff is asking for feedback and direction on the proposed guidelines. 4. Blake Road Corridor Study – Engineering/Community Development (45 minutes) Hopkins hosted an open house in late June and talked about traffic conditions, traffic growth and impacts, and goals for the study. Staff will provide an update on study findings and a review of potential improvements. Communications/Meeting Check-In – Administrative Services (5 minutes) Time for communications between staff and Council will be set aside on every study session agenda for the purposes of information sharing. End of Meeting: 9:10 pm Reports 5. Housing Activity Report 6. 2014 July Financial Report Meeting: Study Session Meeting Date: July 28, 2014 Discussion Item: 2 EXECUTIVE SUMMARY TITLE: Outdoor Refrigerated Ice Feasibility Study RECOMMENDED ACTION: No action necessary at this time. This report is intended to provide the Council with a summary of the feasibility study for an outdoor refrigerated ice rink at The Rec Center. POLICY CONSIDERATION: Is the City Council interested in having staff continue to work with the Hockey Association on further design and funding for an outdoor refrigerated ice rink? SUMMARY: At the Study Session held on January 27, 2014, Council supported staff’s recommendation to begin a feasibility study on the potential for an outdoor refrigerated ice rink on the west side of The Rec Center. Since that time, staff has met with members of the St. Louis Park Hockey Association and prepared the guidelines for the feasibility study. The committee selected RSP Architects to perform the feasibility study. Steven Maurelli, RSP Architects, is the project manager for the study. Steven, along with his team, has previous experience working in St. Louis Park (Wolfe Park Veterans’ Memorial Amphitheater) as well as experience in outdoor refrigerated ice rink projects (Coon Rapids, Roseville, Reston, VA and Klamath Falls, OR). The overall project is proposed to be built in phases. The scope of this project is a 200’ by 85’ refrigerated ice rink with related support spaces and site improvements. The site is in the northwest corner of The Rec Center campus, on the west side of the original arena. Support spaces include spectator seating, scoreboard, locker rooms, Zamboni and storage. The rink ultimately is proposed to be covered in order to alleviate the need for snow removal from the rink and to provide additional usage outside of the ice rink season FINANCIAL OR BUDGET CONSIDERATION: The cost of the study is approximately $10,000 and is being funded using the proceeds from the $200,000 Hockey Association donation made to the City in late 2013. The cost of Phase I of the project is anticipated to be $ 1,575,372. Of that amount, the Hockey Association will commit $500,000. Phase I includes the construction of the rink, dasher boards, footings for a future roof and the plumbing connection to allow for the refrigeration piece once the Rec Center refrigeration project is complete in 2016. Phase II of the project is anticipated to be $3,088,475, for a total cost of $4,663,847. The Hockey Association is willing to commit an additional $1 million for a total of $1.5 million. They would like the ability to solicit sponsors for this project and believe they will be able to find sponsors to help with the funding. In the Phase II portion of the project there are items in addition to the roof, such as: team rooms, concessions, Zamboni and turf. It is possible to do Phase II with just the roof and not these additional items. This can be further vetted as the process continues. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: Discussion Feasibility Report from RSP Architects Prepared by: Cindy S. Walsh, Director of Operations and Recreation Approved by: Tom Harmening, City Manager Study Session Meeting of July 28, 2014 (Item No. 2) Page 2 Title: Outdoor Refrigerated Ice Feasibility Study DISCUSSION BACKGROUND: The Hockey Association and the City of St. Louis Park have a long history of partnerships. They have participated financially in the east rink addition, the skate shop and the public address system in the arena. The intent is for this facility to be a year-round community asset. Although it will be primarily a skating rink, the idea is to use this facility during the spring, summer and fall for other activities and events. Phase II of the project includes the purchase of turf to place over the concrete slab when the ice is not in place. Soccer, lacrosse, baseball and others can practice on the turf when spring weather does not allow outdoor fields to be used. This space can also be used for other activities without the turf; such as, craft fairs, pet expos, dog training, concerts, farmers markets, and garage sales. FEASIBILITY STUDY RESULTS: In order to utilize the existing infrastructure and facilitate management of the rink, the new enclosed spaces (i.e. locker rooms, etc.) are adjacent to the existing building. Additionally, to maintain egress from the West Arena, the rear elevation of the new spectator seating matches the elevation of the egress doors from the existing arena. The rink elevation is established to minimize excavation while taking advantage of the natural slope on the site. Twenty-two (22) parking stalls would be added along the west side of the new arena and there will also be a drop-off area added along the north side of the rink. The additional stalls along with the main Rec Center parking lot should be adequate in supporting the new rink’s operation. The intention is to utilize the existing infrastructure wherever possible in lieu of duplicating them. This is both an economic and maintenance consideration. The proposed scheme utilizes the existing public restrooms for spectator use and the player restrooms in the lower level for skater use. Existing concessions would also support the exterior rink. The Zamboni garage is directly adjacent to the existing pool room in order to connect to the existing water lines and to tie the ice melt pit into the existing sanitary lines. Operationally, it was desirable to have a drop-off to allow direct access to the rink instead of requiring access through the building from the main entrance. The current design of Phase II provides an entry plaza at the same elevation as the existing drive. From the plaza, spectators would go up steps or the ramp to the upper plaza that serves the exterior spectator seating and the entrance to the West Arena. We believe this could become an asset both for identity and as a means of managing ticketing into the West Arena for paid events, but more discussion will be needed to ensure this access doesn’t complicate building management. A copy of the feasibility study is attached. NEED FOR OUTDOOR REFRIGERATED ICE: The Hockey Association has approximately 500 families involved in their program. They currently use ice at The Rec Center’s two existing rinks and have a need for more hours than they are able to acquire at The Rec Center. They purchase additional ice from a private company and from neighboring arenas. Building an outdoor refrigerated rink would provide more hours of available ice for practices and games to be played in the city. Study Session Meeting of July 28, 2014 (Item No. 2) Page 3 Title: Outdoor Refrigerated Ice Feasibility Study The idea of adding an outdoor refrigerated ice rink has been discussed by the Hockey Association for nearl y 20 years . While the committee has discussed a number of sites, their preference is adjacent to The Rec Center. Staff and the Hockey Association believe there are many synergies’ created by having this facility near The Rec Center. The idea is to create a year- round community resource and gathering place. Although the youth Hockey Association will be the primary users of this proposed facility, the intent is for this to be an asset used by many groups at all times of the year. NEXT STEPS: If there is an interest in continuing this discussion, staff will work with the Hockey Association on schematic design, timelines and refining cost estimates. As a part of the next step, a funding plan and potential partnerships will be identified. Saint Louis Park, Minnesota July 21, 2014 1 ST. LOUIS PARK REC CENTER OUTDOOR REFRIGERATED RINK FEASIBILITY STUDY Study Session Meeting of July 28, 2014 (Item No. 2) Title: Outdoor Refrigerated Ice Feasibility Study Page 4 Saint Louis Park, Minnesota July 21, 2014 2 EXISTING SITE Study Session Meeting of July 28, 2014 (Item No. 2) Title: Outdoor Refrigerated Ice Feasibility Study Page 5 Saint Louis Park, Minnesota July 21, 2014 3 EXISTING SITE Study Session Meeting of July 28, 2014 (Item No. 2) Title: Outdoor Refrigerated Ice Feasibility Study Page 6 Saint Louis Park, Minnesota July 21, 2014 4 UPPER LEVEL FLOOR PLAN Study Session Meeting of July 28, 2014 (Item No. 2) Title: Outdoor Refrigerated Ice Feasibility Study Page 7 Saint Louis Park, Minnesota July 21, 2014 5 Study Session Meeting of July 28, 2014 (Item No. 2) Title: Outdoor Refrigerated Ice Feasibility Study Page 8 Saint Louis Park, Minnesota July 21, 2014 6 Study Session Meeting of July 28, 2014 (Item No. 2) Title: Outdoor Refrigerated Ice Feasibility Study Page 9 Saint Louis Park, Minnesota July 21, 2014 7 Study Session Meeting of July 28, 2014 (Item No. 2) Title: Outdoor Refrigerated Ice Feasibility Study Page 10 Saint Louis Park, Minnesota July 21, 2014 8 Study Session Meeting of July 28, 2014 (Item No. 2) Title: Outdoor Refrigerated Ice Feasibility Study Page 11 ST LOUIS PARK REC CENTER OUTDOOR REFRIGERATED RINK FEASIBILITY STUDY 22 July 2014 The scope of this project is a 200’x85’ refrigerated ice arena with related support spaces and site improvements. The site is in the northwest corner of the Rec Center campus, on the west side of the original arena. Support spaces include spectator seating, scoreboard, locker rooms, ice resurfacer and resurfacer garage with ice melt pit. The rink is to be covered in order to alleviate the need for snow removal form the rink and to provide additional usage outside of the ice rink season. Site Strategy In order to utilize the existing infrastructure and facilitate management of the rink, the new enclosed spaces are adjacent to the existing building. Additionally, to maintain egress from the West Arena, the rear elevation of the new spectator seating matches the elevation of the egress doors from the existing arena. The rink elevation is established to minimize excavation while taking advantage of the natural slope on the site. The rink elevation is held as high as possible while still allowing for construction of the upper plaza with spaces to be occupied below. Twenty-two (22) parking stalls are added along the west side of the new arena and there will also be a drop-off area added along the north side of the rink. The additional stalls along with the main Rec Center parking lot should be adequate in supporting the new rink’s operation. Plan Strategy The intention is to utilize the existing infrastructure wherever possible in lieu of duplicating them. This is both an economic and maintenance consideration. The proposed scheme utilizes the existing public restrooms for spectator use and the player restrooms in the lower level for skater use. Existing concessions would also support the exterior rink. The resurfacer garage is directly adjacent to the existing pool room in order to tap off the existing water lines and to tie the ice melt pit into the existing sanitary lines. Operationally, it was desirable to have a drop-off to allow direct access to the rink instead of requiring access through the building from the main building entrance. The current design provides an entry plaza at the same elevation as the existing drive. From the plaza, spectators go up steps or ramp to the upper plaza that serves the exterior spectator seating and the entrance to the West Arena. We believe this could become an asset both for identity and as a means of managing ticketing into the West Arena for paid events, but more discussion will be needed to ensure this access doesn’t complicate building management. Study Session Meeting of July 28, 2014 (Item No. 2) Title: Outdoor Refrigerated Ice Feasibility Study Page 12 ST LOUIS PARK REC CENTER OUTDOOR REFRIGERATED RINK FEASIBILITY STUDY 22 July 2014 Page 2 of 2 Rink Orientation As part of the feasibility, orientations to both an east-west and north-south were studied. The east-west orientation minimized the impact to the pool deck to the south, however, it moved the seating further from the doors and it presented the long side to the low winter sun. As a result, the rink is oriented north-south and the roof comes lower on the south side in order to shade the ice. The roof needs to be a long-span system. Laminated wood trusses with a fabric roof minimize the weight of the roof, while providing the additional benefits of translucence (to provide natural daylighting) and aesthetic consistency with the laminated trusses that are visible on the front faces of the existing rec center. P:\Retail\City of St. Louis Park\Exterior Ice Arena\Feasibility Study\Documentation\05 Building Design\City Council Text 072214jsm.doc Study Session Meeting of July 28, 2014 (Item No. 2) Title: Outdoor Refrigerated Ice Feasibility Study Page 13 FEASIBILITY BUDGET SUMMARY ESTIMATE DATE: PROJECT: ARCHITECT: DRAWING DATE: Base DESCRIPTION Notes Estimate Construction Costs Interior Renovation Allowance $50,000 Concrete Misceallaneous concrete & (6) column pads $30,800 Rough Carpentry Stairway access from building to rink $12,000 Metal Railings $7,500 Doors Frames Hardware Re-work of entry doors $8,000 Ice Rink Slab and rough in of piping $488,000 Dasher Boards Includes adjustable netting $178,500 Lighting $30,000 Earthwork Assumes balanced site $227,563 Asphalt Minor re-work of main street and turnaround $15,000 Site Concrete Minimal sidewalks & curbing $12,500 Retaining Walls 1200 SF of modular block $26,400 Site Utilities Minor relocates & storm water related work $50,000 Landscaping $40,949 Survey $6,500 General Conditions $71,023 General Liability Insurance $11,293 Builders Risk Insurance $3,137 Building Permit $19,091 Bond $13,246 Subtotal Construction Costs $1,301,501 Escalation 5% (If project phase not completed in 2015)$65,075 Contingency 7%$95,660 Contractor's Fee 2.95%$43,136 A&E Design Fees $70,000 Phase I Estimate Total $1,575,372 Phase I St. Louis Park Ice Sheet RSP Architects April 25, 2014 July 21, 2014 Study Session Meeting of July 28, 2014 (Item No. 2) Title: Outdoor Refrigerated Ice Feasibility Study Page 14 ESTIMATE DATE: PROJECT: ARCHITECT: DRAWING DATE: Phase I St. Louis Park Ice Sheet RSP Architects April 25, 2014 July 21, 2014 Building Expansion Phase 4,300SF (zamboni room, team rooms, concessions)$1,137,975 Roof Structure Foundations, structure, roof, parking, etc…$1,395,000 Additional Capicity to Refrigeration $250,000 Turf Interlocking drainage system & turf $225,000 Zamboni Used machine $60,000 SAC/WAC Fees Allowance $15,000 Scoreboard $5,500 Phase II Estimate Total $3,088,475 ***Potential cost savings of $150,000 to $200,000 if all phases completed as one project. ***Add $30,000 for new propane or $65,000 for new electric resurfacer. Phase I Estimate Total:1,575,372$ Phase II Estimate Total:3,088,475$ Total Feasibility Estimate:4,663,847$ Phase II Construction Costs Study Session Meeting of July 28, 2014 (Item No. 2) Title: Outdoor Refrigerated Ice Feasibility Study Page 15 Meeting: Study Session Meeting Date: July 28, 2014 Discussion Item: 3 EXECUTIVE SUMMARY TITLE: Redevelopment Proposal for the Former Bally Total Fitness Block RECOMMENDED ACTION: No action required at this time. POLICY CONSIDERATION: Staff wishes to present and receive feedback on Oppidan Investment Company’s proposal for a mixed-use development on the former Bally Total Fitness block west of Excelsior & Grand. Additionally, input is needed as to whether the EDA would be willing to sell its adjoining property as part of the proposed project and whether it would be willing to consider providing financial assistance to facilitate the redevelopment of these properties. SUMMARY: Oppidan Investment Company proposes to acquire the former Bally Total Fitness facility located at 4900 Excelsior Blvd, raze the building and parking structure and replace them with a mixed-use (retail and residential) development. The proposed building would be 4 stories tall consisting of approximately 26,500 square feet of ground floor retail space and 157 apartment units. It would also feature two levels of underground structured parking as well as on- street parking. As part of the project, Oppidan proposes to purchase the vacant EDA property immediately to the east (located at 4760 Excelsior Blvd). In order to make the project financially feasible, Oppidan will be requesting Tax Increment Financing (TIF) assistance. Paul Tucci with Oppidan has been invited to attend the Study Session to present the proposed project and answer questions. FINANCIAL OR BUDGET CONSIDERATION: The proposed redevelopment will require acquisition of the EDA’s property located at 4760 Excelsior Blvd. The parties have not reached a purchase price, however it is the EDA’s practice to sell property at market rate. In order for redevelopment to occur on the assembled site at the proposed scale and density, tax increment assistance will be needed to defray a portion of the building demolition, site preparation, and structured parking costs. The necessary amount of financial assistance has yet to be determined. VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and diverse housing stock. SUPPORTING DOCUMENTS: Discussion Proposed Site and Building Renderings 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 Study Session Meeting of July 28, 2014 (Item No. 3) Page 2 Title: Redevelopment Proposal for the Former Bally Total Fitness Block DISCUSSION BACKGROUND: The Bally Total Fitness facility (located at 4900 Excelsior Blvd.) closed in 2012 as a result of the acquisition of its parent company by LA Fitness. Recently, Oppidan Investment Company secured an option to purchase the 1.2 acre Bally property and has been working with Staff on preliminary concept plans for the redevelopment of the entire block. It wishes to share those plans at Monday’s Study Session. The land assemblage necessary for the proposed redevelopment will require the acquisition of the property located at 4760 Excelsior Blvd immediately east of the Bally building. This vacant .4 acre property is a remnant owned by the EDA. It acquired the property in 1996 as part of the land assemblage of the future Excelsior & Grand project. The EDA retained ownership of the property in hopes that a mixed-use redevelopment proposal encompassing the entire block would eventually emerge. The property was recently appraised at $600,000 as a Stand-Alone site and $780,000 as Assembled with the adjoining property for a mixed–use development. It is the EDA’s practice to sell property at market rate through a Purchase and Redevelopment Contract. CURRENT PROPOSAL: Oppidan proposes to raze the former fitness facility and adjoining parking ramp and replace them with a new, mixed use development. The proposed building would be 4 stories tall along Excelsior Blvd consisting of approximately 26,500 square feet of ground floor retail space (to be leased to a grocer) and 157 apartment units. Also included would be two levels of structured underground parking as well as on-street-level parking. Study Session Meeting of July 28, 2014 (Item No. 3) Page 3 Title: Redevelopment Proposal for the Former Bally Total Fitness Block PRESENT CONSIDERATIONS: Both the Bally property and the EDA property are guided and zoned Mixed Use. Thus, Oppidan’s proposal is consistent with the required land use category. In order for Oppidan to fully implement its redevelopment plans on the subject site, Tax Increment Financing (TIF) assistance will be needed to defray a portion of the building demolition, site preparation, and structured parking costs. Oppidan is in the process of completing its project pro forma which will need to be reviewed by Staff and Ehlers. Therefore, the precise amount of assistance needed for the project has yet to be determined. The Bally block lies within the current Park Commons TIF District. The period for amending the TIF Plan budget for this district to include Oppidan’s proposes project has expired. If an acceptable amount of tax increment assistance is reached to move the proposed project forward, the subject properties would need to be removed from the existing TIF district and a new Redevelopment TIF district would need to be created. Recently a TIF district feasibility analysis was completed of the subject properties by the consulting firm, LHB. In that analysis it was determined that the Bally Total Fitness building is structurally obsolete and that the subject redevelopment parcels meet the criteria necessary to qualify them for a Redevelopment TIF District. NEXT STEPS: Staff would like feedback on Oppidan’s proposal for a mixed-use project on the former Bally Total Fitness block. Additionally, input is needed as to whether the EDA would be willing to consider selling its adjoining property as part of the required land assemblage and whether it would be willing to consider providing financial assistance to facilitate the redevelopment of these properties. If the EDA/City Council were willing to entertain this proposal, next steps would include the following: 1. Further refinement of redevelopment concepts 2. Neighborhood meeting (s) 3. Traffic Study 4. Apply for PUD a. Staff review b. Potentially another neighborhood meeting(s) c. Planning Commission d. City Council 5. Apply for TIF assistance a. Staff review b. Study sessions c. Planning Commission d. EDA/City Council Study Session Meeting of July 21, 2014 (Item No. 3) Title: Redevelopment Proposal for the Former Bally Total Fitness BlockPage 4 Study Session Meeting of July 21, 2014 (Item No. 3) Title: Redevelopment Proposal for the Former Bally Total Fitness BlockPage 5 Study Session Meeting of July 21, 2014 (Item No. 3) Title: Redevelopment Proposal for the Former Bally Total Fitness BlockPage 6 Study Session Meeting of July 21, 2014 (Item No. 3) Title: Redevelopment Proposal for the Former Bally Total Fitness BlockPage 7 Study Session Meeting of July 21, 2014 (Item No. 3) Title: Redevelopment Proposal for the Former Bally Total Fitness BlockPage 8 Study Session Meeting of July 21, 2014 (Item No. 3) Title: Redevelopment Proposal for the Former Bally Total Fitness BlockPage 9 Study Session Meeting of July 21, 2014 (Item No. 3) Title: Redevelopment Proposal for the Former Bally Total Fitness BlockPage 10 Study Session Meeting of July 21, 2014 (Item No. 3) Title: Redevelopment Proposal for the Former Bally Total Fitness BlockPage 11 Meeting: Study Session Meeting Date: July 28, 2014 Discussion Item: 4 EXECUTIVE SUMMARY TITLE: Meeting with Congressman Ellison RECOMMENDED ACTION: No formal action required. This discussion is intended to assist with preparing for the upcoming meeting with Congressman Ellison POLICY CONSIDERATION: What specific issues or topic areas would the City Council wish to discuss with Congressman Ellison? SUMMARY: At the request of Congressman Ellison the City Council is scheduled to meet with him on Friday, August 8 at 9 AM in the Community Room. This meeting has been posted and is open to the public. To prepare for and make this meeting as productive as possible Council is asked to provide guidance or direction on any specific topic areas it would like to discuss with the Congressman. Note that based on communication from staff it appears Congressman Ellison would like to learn more about our organics program. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: None Prepared by: Tom Harmening, City Manager Meeting: Study Session Meeting Date: July 28, 2014 Written Report: 5 EXECUTIVE SUMMARY TITLE: June 2014 Monthly Financial Report RECOMMENDED ACTION: No action required at this time. POLICY CONSIDERATION: None at this time. SUMMARY: The Monthly Financial Report provides a summary of General Fund revenues and departmental expenditures and a comparison of budget to actual throughout the year. FINANCIAL OR BUDGET CONSIDERATION: At the end of June, General Fund expenditures total 47.2% of the adopted annual budget, which is about 2.8% under where expenditures would normally be through June. Please see the attached analysis for more details. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Discussion Summary of Revenues & Expenditures Prepared by: Darla Monson, Senior Accountant Reviewed by: Brian A. Swanson, Controller Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Study Session Meeting of July 28, 2014 (Item No. 5) Page 2 Title: June 2014 Monthly Financial Report DISCUSSION BACKGROUND: This report is designed to provide summary information of the overall level of revenues and departmental expenditures in the General Fund and a comparison of budget to actual throughout the year. PRESENT CONSIDERATIONS: Actual expenditures should generally run at about 50% of the annual budget at the end of June. Currently, General Fund expenditures are at approximately 47.2% of the adopted budget. Revenues tend to be harder to measure in this same way due to the timing of when they are received, examples of which include property taxes and State aid payments. A few brief comments on specific variances are noted below. Revenues: • License and permit revenues are at 67.3% of budget through June. This is due in large part to the fact that all of the 2014 business and liquor license payments that were budgeted have been received at this point, which is consistent with previous years. Permit revenues are at just under 56% of budget. • Fine revenues are exceeding budget by about 11% through June. Both liquor violation fines and police court fines are running higher than budget and also higher than the previous year. Expenditures: • The Accounting Division is currently running about 3% over budget because of the property and liability insurance premium expense. For simplicity, all property and liability premium expenses for General Fund departments are budgeted under Accounting. A budget amendment will be proposed later in the year to more accurately reflect the insurance costs. • Human Resources expenditures are exceeding budget by about 6% because of unbudgeted expenses related to the Health in the Park program. These additional expenses will be offset by grant revenues. A budget amendment will be proposed later in the year to reflect both the revenue and expense for this new program. • Public Works Administration is over budget by approximately 5% due to a budget allocation change for one of the admin positions splitting time between City Hall and the Municipal Service Center. The additional payroll expenses in Public Works Administration will be offset in the Public Works Engineering budget, which is under budget by over 15% due to this and also the vacant City Engineer position. A budget amendment will be proposed for this and other personnel related items later in the year. • The Organized Recreation Division shows a temporary expenditure variance of about 5% due to the fact that the full Community Education contribution for 2014 of $187,400 was paid to the school district early in the year. The timing of this payment is consistent with prior years. • The Vehicle Maintenance Division continues to run a small overage of about 2.5% on expenditures because of overtime, tires, and repair parts. NEXT STEPS: None are required at this time. Summary of Revenues & Expenditures - General Fund As of June 30, 2014 20142014201220122013201320142014 Balance YTD Budget BudgetActual BudgetAudited Budget Jun YTD Remaining to Actual %General Fund Revenues: General Property Taxes20,169,798$ 20,209,604$ 20,657,724$ 21,987,968$ 21,157,724$ -$ 21,157,724$ 0.00% Licenses and Permits2,375,399 3,241,812 2,481,603 3,069,088 2,691,518 1,812,149 879,369 67.33% Fines & Forfeits328,150 341,356 335,150 311,882 320,150 195,791 124,359 61.16% Intergovernmental1,232,579 1,365,023 1,300,191 2,031,355 1,282,777 271,941 1,010,836 21.20% Charges for Services2,341,104 2,169,631 1,837,976 1,779,259 1,857,718 874,622 983,096 47.08% Miscellaneous Revenue1,079,550 1,092,234 1,092,381 1,067,210 1,112,369 605,475 506,894 54.43% Transfers In2,023,003 2,066,136 1,816,563 1,805,223 1,837,416 906,208 931,208 49.32% Investment Earnings125,000 136,415 150,000 14,180 150,000 - 150,000 0.00% Other Income45,600 276,273 36,650 10,756 17,950 10,135 7,815 56.46%Total General Fund Revenues29,720,183$ 30,898,483$ 29,708,238$ 32,076,921$ 30,427,622$ 4,676,321$ 25,751,301$ 15.37%General Fund Expenditures: General Government: Administration1,012,554$ 977,392$ 877,099$ 890,883$ 939,391$ 430,903$ 508,488$ 45.87% Accounting641,691 639,999 827,320 819,458 767,094 408,386 358,708 53.24% Assessing517,840 518,271 543,855 543,202 559,749 269,336 290,413 48.12% Human Resources667,612 645,357 678,988 731,634 693,598 386,970 306,628 55.79% Community Development1,076,376 1,052,186 1,094,517 1,090,213 1,151,467 538,744 612,723 46.79% Facilities Maintenance1,083,128 972,481 1,074,920 1,058,127 1,053,715 504,366 549,349 47.87% Information Resources1,507,579 1,363,266 1,770,877 1,597,993 1,456,979 711,712 745,267 48.85% Communications & Marketing265,426 244,392 201,322 170,013 566,801 246,396 320,405 43.47% Community Outreach8,185 5,341 8,185 (22,450) 8,185 540 7,645 6.60% Engineering927,337 939,425 303,258 296,383 506,996 175,819 331,177 34.68%Total General Government7,707,728$ 7,358,111$ 7,380,341$ 7,175,456$ 7,703,975$ 3,673,172$ 4,030,803$ 47.68% Public Safety: Police7,273,723$ 7,124,784$ 7,443,637$ 7,225,579$ 7,571,315$ 3,729,030$ 3,842,285$ 49.25% Fire Protection3,346,931 3,291,655 3,330,263 3,246,162 3,458,161 1,679,026 1,779,135 48.55% Inspectional Services1,889,340 1,869,616 1,928,446 1,932,021 2,006,200 915,248 1,090,952 45.62%Total Public Safety12,509,994$ 12,286,055$ 12,702,346$ 12,403,762$ 13,035,676$ 6,323,304$ 6,712,372$ 48.51% Operations & Recreation: Public Works Administration389,783$ 378,852$ 393,054$ 288,207$ 222,994$ 122,691$ 100,303$ 55.02% Public Works Operations2,604,870 2,521,463 2,698,870 2,720,563 2,625,171 1,152,751 1,472,420 43.91% Organized Recreation1,305,747 1,352,273 1,280,117 1,256,678 1,290,038 713,789 576,249 55.33% Recreation Center1,466,246 1,516,121 1,449,930 1,501,627 1,543,881 668,036 875,845 43.27% Park Maintenance1,461,645 1,444,448 1,431,825 1,424,139 1,423,011 657,852 765,159 46.23% Westwood515,456 506,404 520,554 503,309 531,853 231,395 300,458 43.51% Environment390,009 382,378 430,876 434,297 433,750 144,726 289,024 33.37% Vehicle Maintenance1,188,705 1,326,153 1,240,325 1,268,559 1,285,489 675,743 609,746 52.57%Total Operations & Recreation9,322,461$ 9,428,091$ 9,445,551$ 9,397,379$ 9,356,187$ 4,366,983$ 4,989,204$ 46.67% Non-Departmental: General -$ 65,292$ -$ 256,627$ 4,000$ 1,126$ 2,874$ 28.16% Transfers Out- 1,160,000 - 60,000 - - - 0.00% Tax Court Petitions180,000 - 180,000 53,345 327,784 - 327,784 0.00%Total Non-Departmental180,000$ 1,225,292$ 180,000$ 369,972$ 331,784$ 1,126$ 330,658$ 0.34%Total General Fund Expenditures29,720,183$ 30,297,549$ 29,708,238$ 29,346,569$ 30,427,622$ 14,364,586$ 16,063,036$ 47.21%Study Session Meeting of July 28, 2014 (Item No. 5) Title: June 2014 Monthly Financial ReportPage 3 Meeting: Study Session Meeting Date: July 28, 2014 Written Report: 6 EXECUTIVE SUMMARY TITLE: Second Quarter Investment Report (April – June 2014) RECOMMENDED ACTION: No action required at this time. POLICY CONSIDERATION: None at this time. SUMMARY: The Quarterly Investment Report provides an overview of the City’s investment portfolio, including the types of investments held, length of maturity, and yield. FINANCIAL OR BUDGET CONSIDERATION: The total portfolio value at June 30, 2014 is $51.1 million. Approximately 52% of the portfolio is in longer term investments that include agency bonds, municipal debt securities, and certificates of deposit. The remainder is held in money market accounts for future cash flow needs. A consistent overall yield between .7% and 1.1% has been maintained for the past 12 to 18 months by balancing cash flow needs with longer term investment options. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Discussion Investment Portfolio Summary Prepared by: Darla Monson, Senior Accountant Reviewed by: Brian A. Swanson, Controller Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Study Session Meeting of July 28, 2014 (Item No. 6) Page 2 Title: Second Quarter Investment Report (April – June 2014) DISCUSSION BACKGROUND: The City’s investment portfolio is focused on short term cash flow needs and investment in longer term securities. This is done in accordance with Minnesota Statute 118A and the City’s Investment Policy objectives of: 1) Preservation of capital; 2) Liquidity; and 3) Return on investment. PRESENT CONSIDERATIONS: The total portfolio value increased by approximately $4.6 million in the second quarter from $46.5 million at 3/31/2014 to $51.1 million at 6/30/2014. The increase was in available cash due to the receipt of the 70% advance property tax settlement on June 23rd. The overall yield of the portfolio remained consistent at .71% in the second quarter compared to .77% at 3/31/2014 and .79% at 12/31/2013. Cities generally use a benchmark such as the two year Treasury (.47% at 6/30/2014) or some similar measure for yield comparison of their overall portfolio. A new money market account was opened at Northeast Bank in the second quarter. This new account currently offers a higher interest rate of .4%, compared to just .02% in both the 4M Fund and UBS Money Market and .08% at Citizens Independent Bank. To take advantage of this higher rate, $5 million was moved from the Citizens Bank Money Market to the new account at Northeast Bank. This will help to maximize interest earnings on available cash. Approximately 48%, or just under $25 million of the portfolio, is currently held in money markets. While about $5 million to $7 million of this cash may be used to purchase longer term investments in the coming months, it is necessary to keep a large amount of cash available between property tax settlements for on-going cash flow needs for capital project payments, payroll, and operating expenses, as well as the August 1 debt service and Pay As You Go note payments. After receiving the remainder of the first half settlement on July 7, 2014, the next property tax settlement won’t be received until December 1, 2014. Another 8%, or $4.3 million of the portfolio, is invested in fixed rate certificates of deposit at rates that range from .35% for 15 months to 1.9% for five years. There are currently 18 CD’s in the portfolio, each with a face value of $240,000, which guarantees that each CD is insured by the FDIC up to $250,000. Three CD’s matured in the second quarter and all were replaced with new CD’s. Two more CD’s will mature in the fourth quarter. The remaining $22 million of the portfolio is invested in other long term securities, including municipal debt ($12 million) and agency bonds ($10.1 million). Municipal debt instruments are bonds issued by States, local governments, or school districts to finance special projects. Agency bonds are issued by government agencies such as the Federal Home Loan Bank or Fannie Mae. Agency bonds usually have higher interest rates to the final maturity date in five years, but the issuers have the right to call the bonds at specific intervals prior to maturity if interest rates decline. While five of these agency bonds had been called prior to maturity in the first quarter of 2014, only one was called during the second quarter. Four municipal debt securities matured in the second quarter, and another will mature in August. The proceeds from calls and maturities are typically reinvested when possible. Study Session Meeting of July 28, 2014 (Item No. 6) Page 3 Title: Second Quarter Investment Report (April – June 2014) Here is a summary of the City’s portfolio at June 30, 2014: NEXT STEPS: None at this time. 03/31/14 06/30/14 <1 Year 57% 60% 1-2 Years 13% 8% 2-3 Years 6% 10% 3-4 Years 22% 16% >4 Years 2% 6% 03/31/14 06/30/14 Money Markets $19,518,075 $24,731,633 Commercial Paper $0 $0 Certificates of Deposit $4,306,435 $4,303,454 Municipal Debt $13,634,704 $11,969,085 Agency Bonds $9,025,074 $10,057,589 City of St. Louis Park Investment Portfolio Summary June 30, 2014 Institution/Broker Investment Type CUSIP Maturity Date Yield to Maturity Par Value Market Value at 6/30/2014 Estimated Avg Annual Income Citizens Indep Bank Money Market 0.08%3,046,024 3,046,024 2,437 4M Fund Money Market 0.02%5,825,079 5,825,079 1,165 Northeast Bank Money Market 0.40%5,003,288 5,003,288 20,013 UBS CD - First Bank PR Sant 33764JNF8 10/27/2014 0.80% 240,000 240,386 1,920 UBS CD - Doral Bank PR 25811L2L2 12/08/2014 0.85% 240,000 240,540 2,040 UBS CD - Amer Exp Cent UT 02587DLS5 01/26/2015 0.85% 240,000 240,598 2,040 UBS Muni Debt - Amer Munic Pwr Ohio 02765UER1 02/15/2015 1.54% 1,000,000 1,018,960 15,400 UBS Muni Debt - Gilroy, CA 376087CZ3 04/01/2015 1.81% 1,125,000 1,152,911 20,363 UBS Muni Debt - Dist of Columbia 25476FLE6 06/01/2015 1.33% 1,000,000 1,029,130 13,310 UBS CD - Apple Bank NY 0378304L7 09/14/2015 0.35% 240,000 239,278 840 UBS Muni Debt - Calif State 13063BNR9 10/01/2015 2.00% 1,000,000 1,030,040 20,000 UBS CD - BMW Bank UT 05568PZ59 10/26/2015 1.05% 240,000 241,399 2,520 UBS Muni Debt - Atl City, NJ 048339RR8 12/15/2015 2.70% 470,000 485,942 12,690 UBS CD - Barclays Bank DE 06740KFS1 01/11/2016 1.60% 240,000 243,974 3,840 UBS CD - Medallion Bank UT 58403BM52 05/09/2016 0.50% 240,000 239,153 1,200 UBS FNMA Step Up 3136FTXU8 12/29/2016 1.25% 1,000,000 1,004,010 12,500 UBS FHLMC 3134G3NN6 02/27/2017 0.72% 1,000,000 1,000,870 7,220 UBS CD - Discover Bank DE 254671AG5 05/02/2017 1.75% 240,000 242,918 4,200 UBS CD - GE Cap Retail Bank UT 36160NJZ3 05/04/2017 1.75% 240,000 243,456 4,200 UBS Muni Debt - N. Orange Cty CA 661334DR0 08/01/2017 1.01% 1,000,000 1,017,350 10,110 UBS CD - Sallie Mae Bnk UT 79545OPE9 08/29/2017 1.70% 240,000 243,610 4,080 UBS CD - Sun Natl Bank NJ 86682ABV2 10/03/2017 1.00% 240,000 243,242 2,400 UBS CD - Everbank Jacksonvl FL 29976DPB0 10/31/2017 1.00% 240,000 242,215 2,400 UBS CD - Comenity Bank DE 981996AX9 12/05/2017 1.25% 200,000 198,090 2,500 UBS CD - Banco Popular PR 05967ESG5 12/05/2017 1.10% 240,000 239,947 2,640 UBS FNMA 3136G1AJ8 01/30/2018 1.06% 1,000,000 993,960 10,630 UBS FHLB 313381JW6 06/27/2018 0.92% 1,000,000 1,093,559 9,200 UBS Muni Debt - NYC Trans Fin Auth 64971QH55 11/01/2018 1.33% 1,000,000 994,110 13,280 UBS FHLB Step-up 3130A1A73 03/27/2019 2.00% 2,000,000 2,000,680 40,060 UBS CD - Cit Bank UT 17284CH49 06/04/2019 1.90% 240,000 238,682 4,560 UBS Money Market 0.02% 10,857,242 10,857,242 2,171 27,256,254 Sterne, Agee Muni Debt - Smithfield, RI 832322NP2 01/15/2015 1.90% 275,000 277,588 5,225 Sterne, Agee Muni Deb - Smithfield, RI 832322NQ0 01/15/2016 2.40% 275,000 282,695 6,600 Sterne, Agee Muni Debt - Elmore Cnty AL 28976PAS4 02/01/2016 0.85% 1,050,000 1,073,499 8,925 Sterne, Agee Muni Debt - Elmore Cnty AL 28976PAT2 02/01/2017 1.15% 1,000,000 1,019,800 11,500 Sterne, Agee Muni Debt - New York, NY 64966HJS0 04/01/2017 1.20% 500,000 564,370 6,000 3,217,951 Wells Fargo Muni Debt - State of WA 93974CLV0 08/01/2014 1.33% 1,000,000 1,002,640 13,300 Wells Fargo CD - Goldman Sachs Bank NY 38143AGR0 01/12/2015 1.50% 240,000 241,255 3,600 Wells Fargo CD - Ally Bank UT 0200SQYM9 01/26/2015 1.15% 240,000 241,310 2,760 Wells Fargo CD - GE Capital UT 36160XC62 01/06/2016 1.70% 240,000 243,398 4,080 Wells Fargo Muni Debt - Fond Du Lac WI Schl 344496JQ8 04/01/2017 1.05% 1,000,000 1,020,050 10,500 Wells Fargo FNMA 3135G0NH2 08/23/2017 0.95% 1,000,000 998,360 9,500 Wells Fargo Fannie Mae 3136G04A6 11/21/2017 1.00% 1,000,000 993,020 10,000 Wells Fargo FNMA 3135G0TM5 01/30/2018 1.02% 1,000,000 984,880 10,200 Wells Fargo Fannie Mae 3136G1AZ2 01/30/2018 1.00% 1,000,000 988,250 10,000 6,713,164 GRAND TOTAL 51,061,761 364,119 Current Portfolio Yield To Maturity 0.71% Study Session Meeting of July 28, 2014 (Item No. 6) Title: Second Quarter Investment Report (April – June 2014)Page 4 Meeting: Study Session Meeting Date: July 28, 2014 Written Report: 7 EXECUTIVE SUMMARY TITLE: Project Update - Sanitary Sewer Project (MCES Hopkins Interceptor Rehabilitation) RECOMMENDED ACTION: None at this time. Given the number of questions staff has received about this project we felt an update to the Council was in order. POLICY CONSIDERATION: None at this time. Please let staff know of any questions or concerns you may have. SUMMARY: The Metropolitan Council Environmental Services (MCES) is in the process of replacing a regional sanitary sewer (force main) referred to as the Hopkins Interceptor. This sewer pipe extends across the entire length of the City of St. Louis Park from Hopkins to Minneapolis, and generally follows the alignment of the South Frontage Road of Highway 7/ CSAH 25 (France to Lake Street), and Lake Street (Louisiana Avenue to the west City border). A large portion of the St. Louis Park sanitary sewer system discharges through this force main. The existing force main which is being replaced is in poor condition. Replacement of this facility will occur in phases over a multi-year period. Attached is a map showing the locations of the project phases. MCES has hired a public outreach firm for communications to residents and businesses. They also have a community liaison assigned to this project. City staff attends the weekly meetings to monitor the construction and provide feedback on the impacts that the construction is having on the travelling public and our residents. The main City contact for questions for this project is Joseph Shamla, Sr. Engineering Project Manager. FINANCIAL OR BUDGET CONSIDERATION: This project is funded and constructed by Metropolitan Council Environmental Services. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Discussion Contract B Location Map Contract F Location Map Prepared by: Joseph Shamla, Sr. Engineering Project Manager Reviewed by: Debra Heiser, Engineering Director Approved by: Tom Harmening, City Manager Study Session Meeting of July 28, 2014 (Item No. 7) Page 2 Title: Project Update - Sanitary Sewer Project (MCES Hopkins Interceptor Rehabilitation) DISCUSSION BACKGROUND: The Metropolitan Council Environmental Services (MCES) is in the process of replacing a regional sanitary sewer (force main) referred to as the Hopkins Interceptor. This sewer pipe extends across the entire length of the City of St. Louis Park from Hopkins to Minneapolis, and generally follows the alignment of the South Frontage Road of Highway 7/ CSAH 25 (France to Lake Street), and Lake Street (Louisiana Avenue to the west City border). A large portion of the sanitary sewer system of St. Louis Park discharges through this force main. The existing force main which is being replaced is in poor condition. Replacement of this facility will occur in phases over a multi-year period. A first phase between the MN&S Railroad Tracks and Highway 100 was completed in 2010 as part of the Highway 7 & Wooddale Interchange Project. In 2013, another phase was completed during the construction of the Highway 7 and Louisiana Avenue Interchange Project. Attached is a map showing the locations of the project phases. MCES has been working on the Contract B Project which is located on France Avenue and along the County Road 25 south service road. See attached map. The work on this portion of the project was started in 2013 and will be completed by October of 2014. This summer, MCES started working on Contract F. Contract F has three sites. The first site, Site 3, is located between Highway 100 and Lynn Avenue along the County Road 25 south frontage road. The proposed completion of Site 3 is in July of 2015. In 2015, MCES plans on rehabilitating Site 1 between Louisiana Avenue and Hopkins along Lake Street. This project is anticipated to start in the spring of 2015 and be completed in the summer of 2016. The last phase of the project, Site 2, which completes the replacement through St. Louis Park is on the Hwy. 7 south frontage road between the Hwy. 7 and Wooddale Interchange Project and the Hwy. 7 and Louisiana Interchange Project. Along this section of road is a bridge with low clearance. This bridge is hit often due to its height. Engineering staff is working with MCES to lower the profile of the road in this area, thus adding to the amount of clearance under the bridge. This section of force main replacement will start in the spring of 2016 with a completion in the fall of 2016. MCES has hired a public outreach firm for communications to residents and businesses. They also have a community liaison assigned to this project. City staff attends the weekly meetings to monitor the construction and provide feedback on the impacts that the construction is having on the travelling public and our residents. This project has benefits to the City. The location of most of the force main is within the street section. Upon completion of the force main construction, the streets are being repaved by MCES at no cost to the City. Also, the reconstruction of the old force main helps prevent sanitary back- ups or other potential capacity issues within St. Louis Park. 31ST HIGHW A Y 7 SUNSET FRANCELYNNJOPPASERVIC E D R HI G H W A Y 7 MINNETONKA INGLEWOODHUNTINGTONGLENHURSTPRIVATE SERVI C E D R HI G H W A Y 7 LYNNHIGHWA Y 7 JOPPAINGLEWOODGLENHURST0 250 500 750 1,000Feetµ Legend 2013-2014 MetCouncil Forcemain HSI Contract B - St. Louis Park Forcemain Study Session Meeting of July 28, 2014 (Item No. 7) Title: Project Update - Sanitary Sewer Project (MCES Hopkins Interceptor Rehabilitation)Page 3 29TH HIGHWAY 7 TEXASLAKE WALKERSUMTER OXFOR D EXCEL SI O R 36TH 37TH IDAHOLOUISIANA35TH 34TH LI B R A R Y ALABAMARHODE ISLANDJERSEY1ST39TH KIPLING2NDFLORIDAHIGHWAY 100GEORGIAGORHAMWO O D D A L E BELT LINEZARTHANUTICAOTTAWANEVADAPARK G L E NCOLORADO 36 1/2HAMPSHIREKENTUCKY LYNNEDGEWOODOREGONMINNETONKA YOSEMITENORTH 41ST 40THWEBSTERXENWOODGOODRICHSALEMMARYLANDDIVISION EDGEB R O O K SERVI C E D R HI G H W A Y 7 NATCHEZVALLAC H E RMO N T E R E YQUEBEC DAKOTARALEIGH32ND 38THTOLEDOTAFTVERNONUTAH QUENTINPOWELL 32 1/2 WOLFE BRUNSWICKPENNSYLVANIA34 1/2 SERVICE33RD R E P U B L I C M O N I T O R PRIVATEBLACKSTONEO A K L E A F PARK CENTERPARK C O M M O N S 31ST CAMBRIDGE WOODLANDCAMERATA BROOKVIEW PARK NICOLLETMERID IANBRUNSWICK NATCHEZOREGON33RD 31ST 32ND 35TH ALABAMA36TH 33RD 32ND COLORADOPRIVATEHIGHWAY 7 MONTEREY37TH WALK E RDAKOTA DAKOTAYOSEMITEZARTHAN34TH 31ST BRUNSWICKXENWOODYOSEMITEQUEBECUTICAXENWOODBRUNSWICKDAKOTASUMTER LYNNID A H O OXFORD 36TH RALEIGH31ST UTAHQUEBECCAMBRIDGEQUEBEC ALABAMA29TH LAKE32ND EDGEWOOD33RD RALEIGH39TH SALEMPENNSYLVANIA35TH 34TH UTICAYOSEMITEUTAHHIGHWAY 100WOODDA L E LYNN32ND 35TH TOLEDOPRIVATE 0 0.25 0.5 0.75 1Milesµ Legend MCES Project Site Locations Site #1 (Const. Year - 2015-2016) Site #2 (Const. Year - 2016) Site #3 (Const. Year - 2015) HSI Contract F - St. Louis Park Forcemain Study Session Meeting of July 28, 2014 (Item No. 7) Title: Project Update - Sanitary Sewer Project (MCES Hopkins Interceptor Rehabilitation)Page 4 Meeting: Study Session Meeting Date: July 28, 2014 Written Report: 8 EXECUTIVE SUMMARY TITLE: Update on Pop-Up Event RECOMMENDED ACTION: None at this time. The purpose of this report is to provide the City Council with an update on the Pop-Up event proposed along Dakota Avenue. POLICY CONSIDERATION: Does the City Council have any questions or concerns regarding the Pop-Up event? SUMMARY: Over the last year and a half staff has continued to work with members of the community to develop a city-wide health initiative called Health in the Park. Through these discussions, community members have opted to explore a Pop-Up event within the City of St. Louis Park to enhance community awareness and promote health in the City. Community leaders and staff have selected the Dakota Avenue South corridor as the potential event site. With the approval of the City Council, staff has utilized community volunteers to survey residents, neighborhoods and schools along the corridor. The responses were overwhelmingly positive in favor of the event. Steps taken thus far: • Overview with Council on June 23, 2014 • Information distributed to neighborhood, businesses and others regarding event and tentative route • Preliminary planning by committee and communication with residents Next steps: • Set date for event – possible date is Sunday September 28th, very tentative at this point • Continue to work on details with committee, neighbors/residents, businesses, staff and vendors • Develop plans for communication and outreach • Continue to check in with Council FINANCIAL OR BUDGET CONSIDERATION: The Center for Prevention at Blue Cross Blue Shield of Minnesota has approved approximately $10,000 to fund the expenses for this event. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. St. Louis Park is committed to being a leader in environmental stewardship. We will increase environmental consciousness and responsibility in all areas of city business. SUPPORTING DOCUMENTS: Discussion Prepared by: Bill Chang, Administrative Services Intern Reviewed by: Bridget Gothberg, Organizational Development Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Study Session Meeting of July 28, 2014 (Item No. 8) Page 2 Title: Update on Pop-Up Event DISCUSSION BACKGROUND: Staff applied for and received funding from the Center for Prevention at Blue Cross Blue Shield of Minnesota to encourage a healthier community. Community members chose to have a Pop-Up event to increase physical activity and receive public input on a potential bikeway, as proposed in the Connect the Park plan, along Dakota Avenue South from Peter Hobart School to Lake Street W, and extending on Lake Street W west to Library Lane. On June 23, 2014, staff proposed the Pop-Up event to City Council and asked for approval to move forward to survey and contact the residents, neighborhood, business and schools along the route for support. City Council approved staff to move forward with communications. PRESENT CONSIDERATIONS: Staff sent an email on June 27th to the neighborhood leaders of Lennox, Bronx Park and Sorenson informing them of Health in the Park and the proposed Pop-Up event. The email invited the neighborhood leaders to an informational meeting and to discuss the proposed Pop-Up event. Staff then coordinated groups of community volunteers, who are members of the neighborhoods along the route, to place door hangers on residential properties providing information and soliciting comment or concerns. Staff trained and provided information to volunteers who went out during the week of July 21st to door knock and survey residents along the route for their support. Volunteers also spoke to the businesses and schools to learn about their position and listen to concerns. To date, the residents who spoke with volunteers were in favor of the Pop-Up event. A phone number was provided on the door hanger for residents to call if they had any questions or concerns. Volunteers also attempted to door knock during different times and days in attempt to speak with as many residents as possible. Most businesses that could be reached during the time of survey were in favor of the event. General concerns from businesses revolved around the logistics of getting its regular customers in and out of their business. Representatives from Peter Hobart noted a possible scheduling conflict with the Muslim holiday of Eid-al-Adha and Jewish holiday Yom Kippur. Otherwise, they expressed excitement for this event. District communications staff reports no conflicts with a Sunday event. Staff is in the process of determining a date for the event and has tentatively designated September 28th as a target date. NEXT STEPS: If there are no objections, staff will proceed to branding the event, setting the date, and continue on to the planning stages for the event. Meeting: Study Session Meeting Date: July 28, 2014 Written Report: 9 EXECUTIVE SUMMARY TITLE: Cable TV Franchise Fee Compliance Auditor Selected RECOMMENDED ACTION: No action required. This report is intended to keep the Council updated relative to Comcast’s franchise in St. Louis Park. POLICY CONSIDERATION: City Council approved a franchise fee compliance audit on December 16, 2013. Does Council continue to support this effort, noting that ownership of the St. Louis Park franchise may change pending outcomes of current processes? SUMMARY: The City has not conducted a franchise fee audit since 2008. The Telecommunications Advisory Commission passed a motion August 28, 2013 recommending an audit for 2011, 2012 and 2013. A selection team including the City’s Controller Brian Swanson, Civic TV Coordinator Reg Dunlap and Telecommunications Advisory Commissioners Toby Keeler and Bruce Browning reviewed three Requests for Proposal and selected Front Range as the best fit. FINANCIAL OR BUDGET CONSIDERATION: The audit cost will be $8,500 for a phase 1 report, which usually concludes the audit, and $175 per hour for additional tasks. The Cable TV Fund will be used to pay for the audit. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Discussion Prepared by: Reg Dunlap, Civic TV Coordinator Reviewed by: Jamie Zwilling, Communications & Marketing Coordinator Through: Clint Pires, Chief Information Officer Approved by: Tom Harmening, City Manager Study Session Meeting of July 28, 2014 (Item No. 9) Page 2 Title: Cable TV Franchise Fee Compliance Auditor Selected DISCUSSION BACKGROUND: The City Council approved a franchise fee compliance audit on December 16, 2013, at the recommendation of the Telecommunications Advisory Commission. Past Audits: In November, 2003, the City and Time Warner Cable settled a franchise fee audit that covered January 1, 2000-December 31, 2001 which required Time Warner to pay $6,493 for underpayments discovered by Lewis & Associates. The franchise in effect at that time also required Time Warner to pay for the audit, which cost $12,515. The franchise fee review that covered January 1, 2002-December 31, 2004 was settled as part of an overall agreement that include a franchise renewal with Time Warner in January 2006 and a transfer of control to Comcast effective October 1, 2006. The City’s cost for the review was $4,250 because of a partnership with Shakopee, Bloomington and Minneapolis. The most recent audit included both Time Warner Cable and Comcast, October 1, 2005 - June 30, 2008. The City partnered with several communities and paid $11,875 for the audit and recovered $4,880 ($3,338 from Time Warner Cable, $1,542 from Comcast). Auditor Selection Process Report: City staff set up a Request for Proposal (RFP) process and invited a mix of nationally recognized expert firms and one local firm to bid. There were three responses to the RFP, from Moss & Barnett, Front Range Consulting, and Lewis and Associates. All were received by the deadline June 30, 2014. Mr. Dunlap forwarded all responses to the committee on June 30 so members could review them prior to the meeting. The RFP review and selection committee held one meeting on July 2, 2014, and was comprised of Telecommunications Advisory Commissioners Bruce Browning and Toby Keeler, Controller Brian Swanson and Civic TV Coordinator Reg Dunlap. Mr. Dunlap suggested a scoring system that had been used in the past to evaluate proposals. The main goals were to have a fair selection process, ensure the audit process met the needs of the Commission and overall value. Maximum Points (of 100) Description 5 Personal references 20 Franchise fee audit experience 15 Primary staff is a CPA 20 Technical proposal (external quality control, field reviews of their audits) 20 Lowest price 20 Completeness of proposal At the RFP review and selection meeting, first the committee discussed the point system and concluded it was a fair way to rank the 3 firms. All members used the ranking system. The consensus was that any of the proposals would work well, and that the committee needed to find the best fit. Study Session Meeting of July 28, 2014 (Item No. 9) Page 3 Title: Cable TV Franchise Fee Compliance Auditor Selected The committee consensus was to select Front Range, for these reasons: • Front Range was the first or second choice of each committee member • The Front Range proposal was complete and met the criteria of the RFP • The primary staff, Dick Treich, is experienced, well-respected and has worked successfully with the city in the past (2006) • Front Range was the lowest base price of the three proposals The committee consensus was that the process used to arrive at a decision was a solid one, a true group effort, and a good choice for the city. Related issue: Comcast’s request to transfer the franchise to Midwest Cable could impact the audit. City staff will encourage Front Range to expedite the audit to conclude it by mid-October, although that was not a requirement of the RFP because generally franchise fee compliance audits take 4 to 6 months. It is possible that completion of the audit will be a condition of the franchise transfer, if all other legal, technical and financial reports are satisfactory.