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Home My WebLink About2012/10/01 - ADMIN - Agenda Packets - City Council - Regular AGENDA OCTOBER 1, 2012 7:30 p.m. CITY COUNCIL MEETING – Council Chambers 1. Call to Order 1a. Pledge of Allegiance 1b. Roll Call 2. Presentations WELCOME – SLP Parktacular Ambassador Meet & Greet w/ Council & Mayor 3. Approval of Minutes 3a. Study Session Minutes September 10, 2012 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. Public Hearing to Consider 2013 Fees Recommended Action: Mayor to close public hearing. Motion to Approve 1st Reading of Ordinance adopting fees for 2013 and set Second Reading for October 15, 2012. 6b. Public Hearing and First Reading of an Ordinance Granting a Natural Gas Utility Franchise to CenterPoint Energy Resources Corp. Recommended Action: Mayor to close public hearing. Motion to approve first reading of an Ordinance granting CenterPoint Energy Resources Corp. a non-exclusive natural gas utility franchise and set Second Reading for October 15, 2012. 6c. Public Hearing and First Reading of Ordinance Imposing a Franchise Fee on CenterPoint Energy Resources Corp. Recommended Action: Mayor to close public hearing. Motion to approve first reading of an ordinance imposing a franchise fee on CenterPoint Energy Resources Corp. and set second reading for October 15, 2012. 6d. Public Hearing and First Reading of an Ordinance Granting an Electrical Energy Utility Franchise to Northern States Power Company (Xcel Energy) Recommended Action: Mayor to close public hearing. Motion to approve first reading of an Ordinance granting Northern States Power Company a non-exclusive electrical energy utility franchise and set Second Reading for October 15, 2012. 6e. Public Hearing and First Reading of an Ordinance Imposing a Franchise Fee on Northern States Power Company (D/B/A Xcel Energy) Recommended Action: Mayor to close public hearing. Motion to approve first reading of an Ordinance imposing a franchise fee on Northern States Power Company and set Second Reading for October 15, 2012. Meeting of October 1, 2012 City Council Agenda 7. Requests, Petitions, and Communications from the Public -- None 8. Resolutions, Ordinances, Motions and Discussion Items -- None 9. Communication 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 of October 1, 2012 City Council Agenda CONSENT CALENDAR 4a. Adopt Resolution appointing additional election judges needed to staff the polls at the General Election to be held November 6, 2012 4b. Approve a Temporary On-Sale Intoxicating Liquor License for the Job’s Daughters Foundation of Minnesota, 11501 Masonic Home Drive, Bloomington, for an event to be held on October 20, 2012, at Paul Revere Masonic Center, 6509 Walker St., St. Louis Park 4c. Adopt Resolution authorizing final payment in the amount of $10,911.65 and accepting work for Fire Stations No. 1 and No. 2 Work Scope 6 (Structural Steel & Metal Fabrication) with A.M.E. Construction Corporation Project Nos. 2008-3001 and 2008-3002, City Contract No. 42-11 4d. Adopt Resolution authorizing final payment in the amount of $3,365.00 and accepting work for Fire Station No. 1 Work Scope 17 (Floor Coatings) by Henkemeyer Painting & Floor Coatings, Inc., Project No. 2008-3001, City Contract No. 58-11 4e. Adopt Resolution authorizing an agreement between the City of St. Louis Park and Hennepin County for City participation in Active Living Hennepin County and for the development of an Active Living Policy 4f. Grant the City Manager authority to administratively approve work extras (change orders and minor extra work) for an additional $100,000 limit for City Projects 2008-3001 and 2008-3002 (Fire Stations Replacement), in accordance with the City Council’s existing policy 4g. Approve Amendment No. 5 to Contract 142-08 which will provide additional engineering consulting services needed to complete Phase 4 activities (Final Design) for the Highway 7 / Louisiana Avenue Interchange project, Project No. 2012-0100 4h. Adopt Resolution authorizing filing of application and execution of agreement to improve various amenities and lighting in Louisiana Oaks Park under the provisions of the Hennepin County Youth Sports Grant Program 4i. Approve for filing Planning Commission Minutes August 15, 2012 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 Date: October 1, 2012 Agenda Item #: 3a UNOFFICIAL MINUTES CITY COUNCIL STUDY SESSION ST. LOUIS PARK, MINNESOTA SEPTEMBER 10, 2012 The meeting convened at 6:35 p.m. Councilmembers present: Mayor Pro Tem Susan Sanger, Steve Hallfin, Anne Mavity, Julia Ross, Sue Santa, and Jake Spano. Councilmembers absent: Mayor Jeff Jacobs. Staff present: City Manager (Mr. Harmening), Community Development Director (Mr. Locke), Planning/Zoning Supervisor, (Ms. McMonigal), Housing Supervisor, (Ms. Schnitker), Chief Information Officer (Mr. Pires), Fire Chief (Mr. Stemmer), Communications Coordinator (Mr. Zwilling), Organizational Development Coordinator (Ms. Gothberg), Administration Department Intern (Mr. French). Commissioners: Justin Kaufman (Housing Authority), Osman Mire (Housing Authority), Lynne Carper (Planning Commission), Carl Robertson (Planning Commission), Rick Person (Planning Commission) Guests: Gordon Hughes, Moderator (ULI MN), Cathy Capone Bennett, Bennett Community Consulting (ULI MN), Colleen Carey, President (The Cornerstone Group), Mark Ruff, Executive Vice President (Ehlers), Jeff Huggett, Vice President and Project Partner (Dominium), John Breitinger, Vice President Retail Advisory Services (Cushman & Wakefield/Northmarq), Nick Anhut, Financial Specialist (Ehlers) 1. Future Study Session Agenda Planning – September 24, 2012 City Manager Harmening discussed the future agenda with the City Council 2. Navigating the New Normal Workshop City Manager Harmening introduced this topic and the panel of experts that would be participating in the discussion – Gordon Hughes, Moderator, Cathy Bennett, Bennett Community Consulting, Colleen Carey, the Cornerstone Group, Mark Ruff, Ehlers, Jeff Huggett, Dominium, and John Breitinger, of Cushnam & Wakefield. Gordon Hughes provided introductory comments and Cathy Bennett provided an overview of demographics associated with St. Louis Park The panelist shared various insights about St. Louis Park and answered questions posed by the City Council, the Planning Commission and staff. Discussion on this topic ended at 8:35 pm City Council Meeting of October 1, 2012 (Item No. 3a) Page 2 Subject: Study Session Minutes of September 10, 2012 Communications/Meeting Check-In (Verbal) Council discussed issues associated with coyotes in St. Louis Park and a majority consensus of the Council was reached that no special notification should be given related to efforts the City’s contractor may take as part of removing coyotes from the community. Council also discussed with staff neighborhood concerns with the St. Louis Park Bus Company. The meeting adjourned at 9:15 p.m. Written Reports provided and documented for recording purposes only: 3. Project Update – Highway 100 Reconstruction Project ______________________________________ ______________________________________ Nancy Stroth, City Clerk Susan Sanger, Mayor Pro Tem Meeting Date: October 1, 2012 City Council Agenda Item #: 4a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Appointing Additional Election Judges for the 2012 General Election RECOMMENDED ACTION: Motion to Adopt Resolution appointing additional election judges needed to staff the polls at the General Election to be held November 6, 2012. POLICY CONSIDERATION: Does the Council wish to appoint additional election judges? BACKGROUND: On July 16, 2012, Council adopted Resolution No. 12-086 appointing 131 judges for the Primary and General Elections of 2012. Since that time, our office has worked with the staff of St. Louis Park and Benilde/St. Margaret’s High Schools to recruit and train student judges. This resolution appoints 69 students to serve at the General Election on November 6. In addition to the students, several new adult judges have been recruited to serve at the polls on Election Day, and those names are also being presented for approval with this resolution. This brings the total number of election judges serving to over 320 for the General Election. In an effort to accommodate judges unable to work the entire 15-18 hour day, many of our judges will be working in half day shifts. City Clerk staff is required to administer a minimum of 2.5 hours of training to each person serving as an election judge and an additional 1 hour of training for those serving as Chair and Co-Chair Judges. We are expecting a record voter turnout and every effort is being made to provide for adequate crowd control. The number of voters already registered in St. Louis Park is well over 29,000 and we are expecting many more to register to vote at the polls on Election Day. FINANCIAL OR BUDGET CONSIDERATION: Election expenses for judges are included in the adopted 2012 budget. Election judge hourly pay is $8.42. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community through recruitment and training of community members to serve as Election Judges. Attachments: Resolution Prepared by: Kay Midura, Office Assistant Reviewed by: Nancy Stroth, City Clerk Approved by: Tom Harmening, City Manager City Council Meeting of October 1, 2012 (Item No. 4a) Page 2 Subject: Appointing Additional Election Judges for the 2012 General Election RESOLUTION NO. 12-______ RESOLUTION APPOINTING ADDITIONAL ELECTION JUDGES TO SERVE AT THE GENERAL ELECTION ON NOVEMBER 6, 2012 WHEREAS, The 2012 General Election is to be held on November 6, 2012 and the City must act to appoint judges of the election by resolution of the City Council; and WHEREAS, Resolution No. 12-086 was adopted on July 16, 2012; and WHEREAS, student judges have been recruited as well as additional judges needed to staff the polls on Election Day or to serve on the absentee ballot board: NOW THEREFORE BE IT RESOLVED, that in addition to the persons appointed by Resolution 12-086, the following persons have agreed to serve as Student Trainee Election Judges: 2012 Student Judges Nasteeha Abdi Spencer Anderson Molly Arntson Irene Baltazar-Chon Maria Barr Ryan Bell Emma Berger Evan Bichinho Elizabeth Bulman Theresa Cameron Dana Councilman Tania Dominguez-Chon Dylan Dworsky Mikayla Ebert Joseph Fitzgerald Ryan Froom Declan Fruchtman Caitlin Glennon Dwayne Green Carter Green Isaac Greenwood Liv Halvorson Najah Harut Shelbi Hayenga Thaine Heller Jane Henderson Christopher Hickok Kirsten Hintz Janet Holmes Shacni Hussin Alexandra Indritz Alexandra Indritz Gregory Jacobs Sara Jennissen Marissa Kaiser Matt Kaminski Anthony Koch Jason Kosch Tori Kubinski Maggie Lanford Megan Larson Kevin Leal Lindsay Loeber Opema Lohese Emily Lonn Sophie Macklem-Johnson TJ Moore Michael Nanne Jarred Oftedahl Samantha Olson Isabel Pastoor Mary Pavia Zoltan Perkins Jason Phimister Julianna Pinske Carly Quick Noah Richman Nathan Robbins Eli Roehlkepartain Jace Rosenfeld Mitchell Rotert Conrad Schmidt Brianna Sheffield Sophia Temkin Joseph Thelen Elizabeth Vertina Duncan Weisbrod Emma Weisner Conner Youngren City Council Meeting of October 1, 2012 (Item No. 4a) Page 3 Subject: Appointing Additional Election Judges for the 2012General Election LET IT BE FURTHER RESOLVED that the following persons are hereby appointed as additional regular election judges. WARD 1 1-1, Beth El Synagogue Karmit Bulman Cynthia Dyste Tom Green Helen Lipets Cynthia Mueller William Norton Dolores Novotney Carol Nulsen Mark Schwartz 1-2, Peter Hobart Elementary School Jane Ahrens Lawrence Grose Todd Hintz Katherine Kloehn Margaret Rog David Rotert 1-3, City Hall Patricia Davis Emma Disrud Gay Ann Ellingsberg Heidi Finnerud Marie Grimes Carol Pappone Dana Uhrig-Fox 1-4, Central Community Center Martin Lee Kathy McKay Gloria Murman Martin Peyer Edwin Worrell Theresa Zangel Denise Zurn WARD 2 2-5, Union Congregational Church Holly Ahern Deb Brinkman Chandler Bursey Claudia Engeland Jane Flannigan Joan Gerhardson Leah Stevenson Jo Tennison Mary Walters 2-6, St. Louis Park Rec Center Jean McMillen Martha Rice David Richards 2-7, Susan Lindgren Elementary School Mary Campbell Lawrence Carlson Terry Ingram Mary Johnson Claudia Johnston-Madison Patricia Monson Ann Olson Goeffrey Selby Julianne Sixel 2-8, Aldersgate United Methodist Church Susan Benus Roberta Gale John Paul Gille William Kenyon Thomas Lovetang Martha Roberts Regina Smith Dave Walters WARD 3 3-9, Prince of Peace Lutheran Church Carol Brown Cecile Javinsky Carol Johnson Kari Konopliv William Magdziarz-Rainey Susi Saxl Lois Siegel Mary Wiedman Jennifer Witthuhn 3-10, Lenox Community Center Jo Gruenberg Philip Lindblad Donna Ness Forrest Peiper Beth Peyer Robert Warner Roz Wyles 3-11, St. Louis Park Senior High School Kimberly Aune Gail Miller Lois Nalezny Kelley Nelson Richard Olson Rachel Shoger Richard Thorne Marlene Touchberry City Council Meeting of October 1, 2012 (Item No. 4a) Page 4 Subject: Appointing Additional Election Judges for the 2012General Election 3-12, Aquila Elementary School Michael Williams, Chair Glenice Cannon Mary Kuhfeld Barbara Lindblad Myrtle Monroe Clara Quinn JoAnn Ridgeway Helen Stimson Jill Swan WARD 4 4-13, Westwood Lutheran Church Joan Bussen Clint Clement John Hemmerle Sandra Johnson Diana Schug 4-14, Park Assembly Church Fran Addington Rogene Bergquist Peter Bunik Duane Googins Deanie Lerner Bonnie Skelton Jason Smalley Roger Strand Gay Urness 4-15, Peace Presbyterian Church Patty Gilmore Bonnie Knapp David Levin Ilse Mortensen Marcia Tuberman 4-16, Sabes Jewish Community Center John Davis Arlene Drabek Lillian Goltzman Christine Johnson Michele Struss Alternate Election Judges Michael Held Katie McElroy BE IT FURTHER RESOLVED, that the City Clerk is with this, authorized to make any substitutions or additions as deemed necessary. Reviewed for Administration Adopted by the City Council October 1, 2012 City Manager Mayor Attest: City Clerk Meeting Date: October 1, 2012 Agenda Item #: 4b Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Temporary On-Sale Intoxicating Liquor License for the Job’s Daughters Foundation of Minnesota RECOMMENDED ACTION: Motion to Approve a Temporary On-Sale Intoxicating Liquor License for the Job’s Daughters Foundation of Minnesota, 11501 Masonic Home Drive, Bloomington, for an event to be held on October 20, 2012, at Paul Revere Masonic Center, 6509 Walker St., St. Louis Park. POLICY CONSIDERATION: Does Council wish to approve a temporary on-sale intoxicating liquor license for the Job’s Daughters Foundation of Minnesota during their event being held at Paul Revere Masonic Center on October 20, 2012? BACKGROUND: The Job’s Daughters Foundation of Minnesota has applied for a temporary liquor license for an event to be held on Saturday, October 20, 2012, from 6:00 to 10:00 pm at the Paul Revere Masonic Center, 6509 Walker St., St. Louis Park. The purpose of Job’s Daughters International is to develop girls and young women (ages 10-20) into leaders through citizenship, leadership and friendship. The Police Department has completed the background investigation on the principals and has found no reason to deny the temporary license. The applicant has met all requirements for issuance of the license, and staff is recommending approval. FINANCIAL OR BUDGET CONSIDERATION: The fee for a temporary liquor license is $100.00 per day of the event. VISION CONSIDERATION: Not Applicable. Attachments: None Prepared by: Kay Midura, Office Assistant - Administration Approved by: Tom Harmening, City Manager Meeting Date: October 1, 2012 Agenda Item #: 4c Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Final Payment Resolution - Contract 42-11 A.M.E. Construction Corporation – Project Nos. 2008-3001 and 2008-3002 RECOMMENDED ACTION: Motion to Adopt Resolution authorizing final payment in the amount of $10,911.65 and accepting work for Fire Stations No. 1 and No. 2 Work Scope 6 (Structural Steel & Metal Fabrication) with A.M.E. Construction Corporation Project Nos. 2008-3001 and 2008-3002, City Contract No. 42-11. POLICY CONSIDERATION: Not applicable. BACKGROUND: Bids were received on March 31, 2011 for Two New Fire Stations – Project Nos. 2008-3001 and 2008-3002. The projects included construction of Fire Station No. 1 at 3750 Wooddale Avenue and Fire Station No. 2 at 2262 Louisiana Avenue. The City used an agency construction manager (CM) delivery method for both fire stations, rather than a general contractor (GM). With this approach, the City is the owner and general contractor for the project. The construction manager acts as the city’s advisor and representative throughout planning, design and construction of the stations. There are 31 different contracts related to the construction of the two stations. City Council awarded the original contract for Work Scope Work Scope 6 (Structural Steel & Metal Fabrication) for Fire Stations No. 1 and No. 2 to A.M.E. Construction Corporation on April 11, 2011, in the amount of $183,800.00. The Contractor completed this work within the contract time allowed at a final contract cost of $218,233.00. FINANCIAL OR BUDGET CONSIDERATION: The Fire Stations Project was programmed in the Capital Improvement Program for construction in 2011/12 at a total projected cost of $15.5 million. Staff anticipates the actual project costs will be approximately $15.1 million. $12.5 million of this project cost will be paid from bond proceeds issued in December 2010. The remaining portion will be paid from the Fire portion of the Police and Fire Pension Fund. VISION CONSIDERATION: Not applicable. Attachments: Resolution Prepared by: Sean Walther, Senior Planner Reviewed by: Luke Stemmer, Fire Chief Approved by: Tom Harmening, City Manager City Council Meeting of October 1, 2012 (Item No. 4c) Page 2 Subject: Final Payment Resolution - Contract 42-11 A.M.E. Construction – Projects 2008-3001 & 2008-3002 RESOLUTION NO. 12-____ RESOLUTION AUTHORIZING FINAL PAYMENT IN THE AMOUNT OF $10,911.65 AND ACCEPTING THE STRUCTURAL STEEL AND METAL FABRICATION WORK FOR FIRE STATIONS NO. 1 AND NO. 2 BY A.M.E. CONSTRUCTION CORPORATION CITY PROJECT NOS. 2008-3001 and 2008-3002 CONTRACT NO. 42-11 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 April 12, 2011, A.M.E. Construction Corporation has satisfactorily completed Work Scope 6 (Structural Steel and Metal Fabrication) for Fire Stations No. 1 and No. 2, as per Contract No. 42-11. 2. Construction Manager Kraus-Anderson Construction Company recommends final acceptance of the work. 3. The work completed under this contract is accepted and approved. The City Manager is directed to make final payment on the contract, taking the contractor's receipt in full. Original Contract Price $183,800.00 Change Order 1 + $29,768.00 Change Order 2 + $4,665.00 Final Contract Amount $218,233.00 Previous Payments - $ 207,321.35 Balance Due $ 10,911.65 Reviewed for Administration: Adopted by the City Council October 1, 2012 City Manager Mayor Attest: City Clerk Meeting Date: October 1, 2012 Agenda Item #: 4d Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Final Payment Resolution - Contract 58-11 Henkemeyer Painting & Floor Coatings, Inc. – Project No. 2008-3001 RECOMMENDED ACTION: Motion to Adopt Resolution authorizing final payment in the amount of $3,365.00 and accepting work for Fire Station No. 1 Work Scope 17 (Floor Coatings) by Henkemeyer Painting & Floor Coatings, Inc., Project No. 2008-3001, City Contract No. 58-11. POLICY CONSIDERATION: Not applicable. BACKGROUND: Bids were received on March 31, 2011 for Two New Fire Stations – Project Nos. 2008-3001 and 2008-3002. The projects included construction of Fire Station No. 1 at 3750 Wooddale Avenue and Fire Station No. 2 at 2262 Louisiana Avenue. The City used an agency construction manager (CM) delivery method for both fire stations, rather than a general contractor (GM). With this approach, the City is the owner and general contractor for the project. The construction manager acts as the city’s advisor and representative throughout planning, design and construction of the stations. There are 31 different contracts related to the construction of the two stations. City Council awarded the original contract for Work Scope 17 (Floor Coatings) for Fire Station No. 1 to Henkemeyer Painting & Floor Coatings, Inc. on April 11, 2011, in the amount of $64,500.00. The Contractor completed this work within the contract time allowed at a final contract cost of $67,293.72. FINANCIAL OR BUDGET CONSIDERATION: The Fire Stations Project was programmed in the Capital Improvement Program for construction in 2011/12 at a total projected cost of $15.5 million. Staff anticipates the actual project costs will be approximately $15.1 million. $12.5 million of this project cost will be paid from bond proceeds issued in December 2010. The remaining portion will be paid from the Fire portion of the Police and Fire Pension Fund. VISION CONSIDERATION: Not applicable. Attachments: Resolution Prepared by: Sean Walther, Senior Planner Reviewed by: Luke Stemmer, Fire Chief Approved by: Tom Harmening, City Manager City Council Meeting of October 1, 2012 (Item No. 4d) Page 2 Subject: Final Payment Resolution - Contract 58-11 Henkemeyer Painting & Floor Coatings – Project 2008-3001 RESOLUTION NO. 12-____ RESOLUTION AUTHORIZING FINAL PAYMENT IN THE AMOUNT OF $3,365.00 AND ACCEPTING THE FLOOR COATINGS WORK FOR FIRE STATION NO. 1 BY HENKEMEYER PAINTING & FLOOR COATINGS, INC. CITY PROJECT NO. 2008-3001 CONTRACT NO. 58-11 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 April 12, 2011, Henkemeyer Painting & Floor Coatings, Inc. has satisfactorily completed Work Scope 17 (Floor Coatings) for Fire Station No. 1, as per Contract No. 58-11. 2. Construction Manager Kraus-Anderson Construction Company and Architect DLR Group KKE recommend final acceptance of the work. 3. The work completed under this contract is accepted and approved. The City Manager is directed to make final payment on the contract, taking the contractor's receipt in full. Original Contract Price $64,500.00 Change Order 1 + $2,793.72 Final Contract Amount $67,293.72 Previous Payments - 63,928.72 Balance Due $ 3,365.00 Reviewed for Administration: Adopted by the City Council October 1, 2012 City Manager Mayor Attest: City Clerk Meeting Date: October 1, 2012 Agenda Item #: 4e Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Active Living Hennepin County Funding Agreement RECOMMENDED ACTION: Motion to Adopt Resolution authorizing an agreement between the City of St. Louis Park and Hennepin County for City participation in Active Living Hennepin County and for the development of an Active Living Policy. POLICY CONSIDERATION: Does the Council wish to affirm City of St. Louis Park’s support for Active Living Hennepin County and continue to work with Active Living Hennepin County through June 30, 2013? Does the City Council wish to receive assistance from Hennepin County to help pay for the development of an Active Living Policy? BACKGROUND: The City has been a partner in Active Living Hennepin County since 2006. In 2008, the City adopted Resolution 08-046 affirming support of Active Living Hennepin County’s vision, mission and guiding principles. In 2012, the City Council adopted Resolution 12-077 authorizing the City of St. Louis Park to participate in the Minnesota GreenStep Cities Program and directing city staff to identify a short list of best practices for further development and promotion, including adoption of an Active Living Policy. Adopting the proposed Resolution will continue City of St. Louis Park’s participation in Active Living Hennepin County through June 30, 2012 and provide funding and technical support from Hennepin County for developing an Active Living Policy. The agreement does not specify what policy the City must pursue, rather it sets milestones for the City to demonstrate progress in an area of its own choosing. If the City Council decided to halt any policy development, the City would not receive the full funding, but there is no penalty. Creating an Active Living Policy is a natural step given the City Council’s previous support for the Active Living Hennepin County idea and its ties to Vision St. Louis Park and GreenStep Cities. The policy could focus on formalizing many of the City’s existing practices and perhaps push for incremental changes. Staff anticipates an Active Living policy would touch upon several of the City’s spheres of influence, the built environment (i.e. development, city facilities, street design, sidewalks, etc.), programming (i.e. parks & recreation), employee wellness, etc. FINANCIAL OR BUDGET CONSIDERATION: The proposed agreement provides $1,500 to the City of St. Louis Park for participation in Active Living Hennepin County and up to $6,000 for policy development. City Council Meeting of October 1, 2012 (Item No. 4e) Page 2 Subject: Active Living Hennepin County Funding Agreement VISION CONSIDERATION: The most specific reference to Active Living is found in the Vision statement from the Sidewalks and Trails Action Group: “St. Louis Park will have a connected network of safe sidewalks and trails to encourage physical fitness and non-polluting transportation options.” Active Living is supportive of two of City Council’s strategic directions: • St. Louis Park is 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;” Attachments: Resolution More Information About Active Living Hennepin County Prepared by: Sean Walther, Senior Planner Reviewed by: Meg McMonigal, Planning and Zoning Supervisor Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager City Council Meeting of October 1, 2012 (Item No. 4e) Page 3 Subject: Active Living Hennepin County Funding Agreement RESOLUTION NO. 12-____ RESOLUTION AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF ST. LOUIS PARK AND HENNEPIN COUNTY FOR CITY PARTICIPATION IN ACTIVE LIVING HENNEPIN COUNTY AND FOR CITY POLICY DEVELOPMENT WHEREAS, the City of St. Louis Park supports the work of Active Living Hennepin County; and WHEREAS, City of St. Louis Park Hennepin County Ordinance 13 requires each City to implement a recycling program to enable the County to meet its recycling goals; and WHEREAS, Hennepin County has offered funding for City of St. Louis Park participation in Active Living Hennepin County and for City of St. Louis Park to develop policies related to Active Living; and WHEREAS, to be eligible to receive these County funds, Cities must meet the conditions set forth in the agreement; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota, that the City Council authorizes and directs the Mayor, City Manager and city staff to execute on behalf of the City of St. Louis Park, Minnesota an agreement in its entirety which provides funding for participation in Active Living Hennepin County through June 30, 2013, and for policy development related to Active Living; Reviewed for Administration: Adopted by the City Council October 1, 2012 City Manager Mayor Attest: City Clerk City Council Meeting of October 1, 2012 (Item No. 4e) Page 4 Subject: Active Living Hennepin County Funding Agreement More Information About Active Living Hennepin County Active Living Active Living is a way of life that integrates physical activity into daily routines and destinations, through activities such as biking, walking and/or taking transit. Why is Active Living important? Physical inactivity and poor nutrition are leading causes contributing to increasing rates of obesity and other chronic diseases, and adult obesity was declared an epidemic in 2007 by the Director of the Centers for Disease Control and Prevention. Health problems associated with physical inactivity and poor nutrition affect Hennepin County and its communities through reduced quality of life and higher medical costs – over $1 billion in Hennepin County per year. Increased pedestrian and bicycle activity can reduce vehicle emissions and air pollution, thereby decreasing asthma attack rates and emergency room visits and promoting environmental sustainability. Increased pedestrian and bicycle activity can enhance social cohesion, increase neighborhood economic viability, and improve public safety. About Active Living Hennepin County Active Living Hennepin County is a partnership of cities, businesses and nonprofits working together to increase opportunities for active living through policy change and infrastructure planning. The group was launched in 2006 with grant funding from Blue Cross Blue Shield and Hennepin County. Blue Cross and Blue Shield of Minnesota has funded the partnership since 2006. As of July 2009, Minnesota Department of Health's Statewide Health Improvement Program (SHIP) has also provided funding. ALHC’s vision, mission and guiding principles are attached for your information. During 2006 and 2007, ALHC conducted an assessment of the opportunities and barriers to active living. The assessment led to the development of its vision, mission and guiding principles, and helps guide ALHC’s work. It also led to the creation of subcommittees that now carry out the majority of the work and plan special events. The Hennepin County Board of Commissioners unanimously approved the county's first active living resolution in October 2007. This resolution formally adopted the active living vision, mission and guiding principles, and laid the foundation for the development and implementation of related policies. Hennepin County’s Active Living Policies were adopted in June and July of 2009 and are being implemented throughout Hennepin County. Active Living Hennepin County activities have included hosting local workshops, developing a toolkit of resources for cities and counties, and marketing local programs and facilities. City Council Meeting of October 1, 2012 (Item No. 4e) Page 5 Subject: Active Living Hennepin County Funding Agreement Active Living Hennepin County has hosted six local workshops, including: • Placemaking Workshop – September 2012 • Building Cultural Competencies Workshop – April & May 2011 • Biking Workshop - October 2009 • Winter Walking Workshop - March 2009 • Complete Streets Workshop - December 2008 • Walking Workshops - Spring 2007 & Fall 2006 The Active Living Hennepin County Toolkit provides cities and counties with resources to start an Active Living program in their own community. Resources include sample policies, design checklists, communications plans, research, a planning guide for walking workshops, and PowerPoint presentations. The partnership has marketed area programs and facilities through its Get Out, Get Active campaign launched in 2011 and continued in 2012. Some Active Living Hennepin County partners, including City of St. Louis Park, have also gained permission from Blue Cross Blue Shield of Minnesota to use the Do. logo in its marketing materials. Meeting Date: October 1, 2012 Agenda Item #: 4f Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Project Administration – Fire Stations Replacement Project (Project Nos. 2008-3001 & 2008-3002) RECOMMENDED ACTION: Motion to grant the City Manager authority to administratively approve work extras (change orders and minor extra work) for an additional $100,000 limit for City Projects 2008-3001 and 2008-3002 (Fire Stations Replacement), in accordance with the City Council’s existing policy. POLICY CONSIDERATION: Does the City Council wish to grant the City Manager the change order authority requested? The project will continue to be administered in accordance with the City’s existing policy. BACKGROUND: The overall construction of the Fire Stations is substantially complete. The stations were placed in operations on schedule and on budget. There are several remaining items that still need to be addressed before the project can be closed out. The City Charter states that the City Manager is the chief purchasing agent of the City and is allowed to approve and execute contracts in compliance with State Law. The City’s internal procedure/policy allows the City Manager to approve general purchasing up to a cumulative maximum of $100,000. In the event the $100,000 amount is exceeded, City Council approval is required. The City Manager is authorized to approve change orders on contracts up to a cumulative total of $100,000. On September 19, 2011, and January 7, 2012, the City Council approved $100,000 increases in the City Manager’s authority for the Fire Stations project up to a total of $300,000. Staff requests the City Council give the City Manager the authority to administratively approve up to an additional $100,000 (for a total of $400,000) in order to expedite the pending change orders. Fire Station change orders costs to date: Approved: $295,574 Pending: $182,755 Total: $478,329 Change order costs are paid from the projects contingency budget, which will still have $100,021 remaining if all the pending costs above are approved. Attached is a letter from the construction manager, Kraus-Anderson Construction, which provides a list and general description of approved and pending change orders that have occurred since the last reporting to Council. Please note that the list excludes changes that were cost neutral or credits to the project. The list also excludes change orders reported to City Council previously. The attached list adds up to $73,184. The total approved and pending change orders is $478,329. City Council Meeting of October 1, 2012, 2012 (Item No. 4f) Page 2 Subject: Project Administration – Fire Stations Replacement (Project Nos. 2008-3001 & 2008-3002) Change orders and orders for additional work items and quantity adjustments are typical for any construction project. The Fire Stations Replacement project has been no exception. The magnitude of the project simply amplifies the number of changes and associated costs beyond those of smaller projects. Examples of the changes include changes to materials, revised architectural details, ductwork and piping modifications, amounts and quantities of specific items, etc. The issues have been addressed with the contractors by Kraus Anderson with City concurrence and approval in accordance with City policy. Approval of this item allows the City Manager to authorize up to an additional $100,000 for necessary changes on this project for a cumulative total of $400,000. FINANCIAL OR BUDGET CONSIDERATION: This project is in the City’s adopted Capital Improvement Program (CIP). The project budget for constructing both stations is $15.5 million. The sources of funds include $12.5 million in Build America bonds issued in December 2010. The remaining portion will be paid with approximately $3 million from the Fire portion of the Police and Fire Pension Fund. Staff anticipates the actual project costs will be approximately $15.1 million. VISION CONSIDERATION: Not applicable. Attachment: Change Order Summary (Kraus-Anderson Construction) Prepared by: Sean Walther, Senior Planner Reviewed by: Luke Stemmer, Fire Chief Approved by: Tom Harmening, City Manager Innovative Construction Solutions 8625 Rendova Street NE P.O. Box 158 Circle Pines, MN 55014 O 763.786.7711 F 763.786.2650 www.krausanderson.com Affirmative Action / Equal Employment Opportunity Employer September 25, 2012 Mr. Sean Walther City of St. Louis Park 5005 Minnetonka Boulevard St. Louis Park, MN 55416 Re: St. Louis Park Fire Station No. 1 and No. 2 St. Louis Park, Minnesota Dear Mr. Walther: The following is a summary list of pending change orders for Fire Station No. 1 and Fire Station No. 2. This summary lists changes by Issue and Station and are sorted into the following five categories: Structural, Electrical, Mechanical, Civil and Architectural. A. Structural Revisions for Fire Station No. 1 ● PCO No. 176 Misc. structural steel, deck and concrete changes. These changes affected the concrete contractor, the steel erector and steel supplier. $3,025.00 B. Electrical Revisions at Fire Station No. 1 ● PCO Nos. 97, 165, 177, 181, 182, 187 Additional conduits and sleeves for small utilities. These changes affected the electrical contractor. $12,772.00 C. Electrical Revisions at Fire Station No. 2 ● PCO No. 143 Additional conduits and sleeves for small utilities. These changes affected the electrical contractor. $1,591.00 D. Mechanical Revisions at Fire Station No. 1 ● PCO Nos. 101, 109, 175, 178 Ductwork and piping modifications. These changes affected the fire protection and mechanical contractors.$14,265.00 E. Mechanical Revisions at Fire Station No. 2 ● PCO No. 148 Ductwork and piping modifications. These changes affected the fire protection and mechanical contractors.$1,208.00 City Council Meeting of October 1, 2012 (Item No. 4f) Subject: Project Administration – Fire Stations Replacement (Project Nos. 2008-3001 & 2008-3002)Page 3 Mr. Sean Walther -2- September 25, 2012 City of St. Louis Park F. Miscellaneous Architectural Changes at Fire Station No. 1 ● PCO Nos. 130, 149, 150, 173, 174, 179, 183, 184, 186 Finishes and miscellaneous architectural changes. These changes affected the masonry, tile, carpentry, drywall, painting, flooring, glass, hardware and ceiling contractors.$26,015.00 G. Miscellaneous Civil Changes at Fire Station No. 1 ● PCO Nos. 158, 162, 180 Miscellaneous civil changes. These changes affected the grading and landscape contractors. $7,615.00 H. Miscellaneous Civil Changes at Fire Station No. 2 ● PCO Nos. 138, 141, 145, 147 Miscellaneous civil changes. These changes affected the grading and landscape contractors. $6,693.00 To date, the total cost of pending change orders is $321,383 for Fire Station No. 1 and $156,946 for Fire Station No. 2. The grand total for both stations is $478,329. Very truly yours, KRAUS-ANDERSON CONSTRUCTION COMPANY Brian L. Hook Senior Project Manager BLH:rh City Council Meeting of October 1, 2012 (Item No. 4f) Subject: Project Administration – Fire Stations Replacement (Project Nos. 2008-3001 & 2008-3002)Page 4 Meeting Date: October 1, 2012 Agenda Item #: 4g Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Amend Consultant Contract - Highway 7 / Louisiana Avenue Interchange Project RECOMMENDED ACTION: Motion to approve Amendment No. 5 to Contract 142-08 which will provide additional engineering consulting services needed to complete Phase 4 activities (Final Design) for the Highway 7 / Louisiana Avenue Interchange project, Project No. 2012-0100. POLICY CONSIDERATION: Does the City Council wish to continue with Phase 4 project development activities? BACKGROUND: History The City’s Capital Improvement Program (C.I.P.) identifies the Highway 7/Louisiana Avenue intersection as a priority improvement project. The proposed project, which provides for the construction of a grade-separated interchange at Louisiana Avenue and Highway 7, also includes pedestrian and bicycle friendly improvements along with re-configuration of the frontage roads in order to improve access, safety, and traffic flow for both the Highway 7 corridor and Louisiana Avenue. This proposed improvement is essential in meeting long term transportation and safety needs of both MnDOT and the City as well as quality of life and redevelopment needs in this area of the city. Phase 4 Activities (underway) Phase 4 activities, described as Final Design and Plan Preparation, include detailed engineering work needed to complete plans and specifications to obtain final MnDOT project approvals and authorization for bidding. Final plans are nearing completion and will be submitted for agency review in mid-October. MnDOT plan review will take about 4-6weeks. Final plan revisions, specification writing, final approval signatures and bidding authorization will be completed by early February, 2013. Advertisement for bids will then begin in mid-February with a bid opening occurring in mid-March 2012. Contract award is anticipated on April, 1, 2013 with construction starting in mid-April, 2013. Additional Consulting Services As work has progressed on Phase 4 activities, additional consulting services (both planned and unforeseen) needs to be performed to complete the plans and specifications, acquire the right of way, and obtain final MnDOT project approvals. The additional services includes: right of way acquisition support, additional soils exploration work required by MnDOT (recently completed), additional work due to the one year project schedule extension, design work to incorporate public art into the project, and other design work revisions and additions needed to complete the final plans and obtain MnDOT approval. Further details of the additional services are shown in the attached work task list. City Council Meeting October 1, 2012 (Item No. 4g) Page 2 Subject: Amend Consultant Contract - Highway 7 / Louisiana Avenue Interchange Project FINANCIAL OR BUDGET CONSIDERATION: Estimated Contract Cost SEH estimates the cost for additional services needed to complete Phase 4 activities at $383,378. All work performed under this contract is being paid for on a time and materials basis. The source of funds for this work/project are HRA levy proceeds. Should Council approve Amendment No. 5, the professional services costs with SEH would then be estimated as follows: Original Contract (Phase 1 & 2 work) $ 306,548 Amendment No. 1 (Phase 3 work) $ 350,000 Amendment No. 2 (Additional Phase 3 work) $ 185,000 Amendment No. 3 (Phase 4 work) $ 958,600 Amendment No. 4 (RAP) $ 17,965 Amendment No. 5 (Additional Phase 4 work) $ 383,378 Total $2,201,491 Contract Terms The following terms are incorporated into this contract: 1. Compensation is based on actual work performed with a maximum contract amount of $2,201,491. 2. SEH has independent contractor status. 3. City may terminate this contract with seven (7) days notice. The document utilized for this contract is the City’s standard professional services agreement developed by the City Attorney. Project Costs The following summarizes the project development phases and the costs contracted for with SEH, Inc. to date: Phase Contract Amount Cost to Date Status 1 & 2 $306,548.00 $296,420.77 Work Completed 3 $535,000.00 $561,231.81 Work Completed 4 $976,565.00 $919,852.88 94% Complete Total $1,818,113.00 $1,777,505.46 Presented below are the latest estimated project costs based on current design work. All of the funding sources are also presented below: Current Estimated Project Costs Construction $18,090,000 Preliminary and Final Design Engineering $ 2,201,500 Construction Engineering (estimated consultant cost) $ 1,800,000 Undergrounding Power Lines $ 450,000 Right of Way Acquisition Services (appraisals, title work, attorney fees) $ 100,000 Right of Way (Purchasing land and easements, condemnation costs) $ 2,600,000 Total Costs $25,342,500 City Council Meeting October 1, 2012 (Item No. 4g) Page 3 Subject: Amend Consultant Contract - Highway 7 / Louisiana Avenue Interchange Project Funding Sources Federal (STP) Funds $7,630,000 MnDOT Access Management Funds $1,000,000 MnDOT Municipal Cooperative Agreement Funds $ 594,000 MnDOT (Construction Eng’r - in lieu of funds) $1,800,000 TED Grant (MnDOT & DEED Program) $3,000,000 City Funds (20% construction grant match – source HRA Levies) $2,398,000 City Funds (Preliminary and Final Design Eng’r – source HRA Levies) $2,201,500 City Funds (Right of Way – source HRA Levies) $2,700,000 City Requested Special Facilities Surcharge (CRFS) $ 450,000 City Water and Sewer Utility Funds $ 200,000 City Funds (HRA Levies) $3,369,000 Total Committed Funds $25,342,500 Current funding for Phases 1, 2, 3 and 4 comes from HRA levy proceeds which have been designated to pay for infrastructure improvements in redeveloping areas. VISION CONSIDERATION: The following Strategic Direction and focus area has been identified by Council. St. Louis Park is committed to being a connected and engaged community. Focus will be on: • Promoting regional transportation issues and related dedicated funding sources affecting St. Louis Park including but not limited to Hwy. 100 and SWLRT. Attachments: Contract Amendment No. 5 Additional Services Work Task List Prepared by: Jim Olson, Engineering Project Manager Reviewed by: Scott Brink, City Engineer Mike Rardin, Public Works Director Approved by: Tom Harmening, City Manager City Council Meeting October 1, 2012 (Item No. 4g) Page 4 Subject: Amend Consultant Contract - Highway 7 / Louisiana Avenue Interchange Project AMENDMENT NO. 5 CITY OF ST. LOUIS PARK CONSULTING SERVICES CONTRACT NO. 142-08 THIS AGREEMENT is made on October 1, 2012, by and between the CITY OF ST. LOUIS PARK, Minnesota, a Minnesota municipal corporation (hereinafter referred to as “City”), and Short Elliot Hendrickson, Inc., a Minnesota corporation (hereinafter referred to as “SEH”). 1. BACKGROUND: The parties have previously entered into an agreement for consulting services dated December 1, 2008 (“Initial Agreement”). The Initial Agreement authorizes SEH to provide engineering consulting services for Phase 1 and 2 of project 2012-0100 at a cost not to exceed $306,548.00. On March 15, 2010 Amendment No. 1 was approved to perform Phase 3 activities at an additional cost of $350,000 with a not to exceed total contract cost of $656,548. On January 18, 2011 Amendment No. 2 was approved for additional Phase 3 activities at an additional cost of $185,000 with a not to exceed total contract cost of $ 841,548. On April 4, 2011 Amendment No. 3 was approved to perform Phase 4 activities at an additional cost of $958,600 with a not to exceed total contract cost of $ 1,800,148. On March 19, 2012 Amendment No. 4 was approved to perform additional Phase 4 activities at an additional cost of $17,965 with a not to exceed total contract cost of $ 1,818,113. 2. ITEM NO. 1: SCOPE OF SERVICES: This paragraph shall be amended to include additional Phase 4 engineering services outlined in the SEH proposal dated September 5, 2012. 3. ITEM NO. 2: TIME FOR PERFORMANCE OF SERVICES: No additional time is added. Phase 4 activities are to be completed by the end of July, 2013. 4. ITEM NO. 3: COMPENSATION FOR SERVICES: Subject to the modifications set forth herein, the not to exceed compensation amount shall increase by $383,378 from $1,818,113 to $2,201,491. IN TESTIMONY WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly authorized officers. EXECUTED as to the day and year first above written. SEH, INC. CITY OF ST. LOUIS PARK By:________________________________ By:________________________________ Jeff Jacobs, Mayor Title:_______________________________ and________________________________ Thomas Harmening, City Manager Client: St. Louis Park TOTAL 1.0 Additional Services 1.1 ADA standards changed requiring rework on ramps/walks/trails 32 16 48 1.2 Utility Tabs - Did not include based on Wooddale plans. MnDOT has now requested them for TH 7/Louisiana Avenue 12 40 52 1.3 Preparation of pros/cons list and construction estimate for a potential change to concrete pavement on Louisiana Avenue 6 8 14 1.4 Support for right of way services including anticipated right of way impact figures, coordination with right of way consultant, parcel sketches, and legal descriptions. Staking of parcel limits, construction limits, and easements.24 90 85 50 249 1.5 Additional geotechnical investigation as requested by MnDOT follow review of 60% submittal - includes Braun, coordination/meetings, boring layouts, disposal cuttings, review and analysis of results.40 110 60 210 1.6 Design and plan changes as a result of additional geotechnical investigation - Assumes slight modifications to current pile supported design.8 60 40 40 148 1.7 Figures for environmental issues at parking lot is SW quadrant (May 2012)8 8 1.8 Prepare Traffic Management Plan - Now required by MnDOT 40 6 46 1.9 Approximate 12 month extension of design schedule - additional project management, revisoins, delays, meetings, etc.160 100 400 400 1060 1.10 MnDOT Traffic Management Center and signal fiber design and relocation 60 12 72 1.11 Design and specs for modifying the gas venting system in the southwest quadrant 4 40 8 4 56 1.12 Revisions to walks, medians, slope paving, and plantings to incorporate public art discussions 4 80 40 124 1.13 Revisions to bridge, walls, and lighting to incorporate public art 64 60 124 1.14 Out of scope geotechnical items including bypass surcharge design, contaminated cuttings, additional MnDOT coordination 98 98 1.15 No association letter(s) for MPCA 4 8 2 14 1.16 Additional public art coordination by landscape architecture staff 40 40 80 1.17 Planting irrigation design and specifications 60 20 2 82 1.18 Temporary signal design for temporary bypass 4 40 12 56 Task 8.0 Subtotal Hours:208 450 1030 8 725 106 14 2541 TOTAL HOURS 208 450 1030 8 725 106 14 2541 AVERAGE HOURLY RATES WITH OVERHEAD AND FIXED FEE $170 $135 $110 $85 $95 $75 $65 TOTAL LABOR COST $287,825 DISPOSAL OF CUTTINGS PEER REVIEW OF PILE SUPPORTED FILL DESIGN $5,000 SUBCONSULTANT (SOIL BORINGS/LAB)$90,000 REIMBURSABLE EXPENSES (PHASE 4 REQUESTS, MILEAGE, NEWSLETTERS AND REPRODUCTION)$553 TOTAL PROJECT COST $383,378 TH 7 / Louisiana Ave. Interchange Estimated Additional Services - July 2012 Prof. Engineer Principal / Sr. P.M. Sr. Prof. Engineer Scientist Graphics/ Technician/ Surveyor Admin. Grad Engineer/ Sr. TechWork Tasks S:\PT\S\Stlou\116227\1-genl\10-contracts\Additional Work June 2012.xlsx Short Elliott Hendrickson Inc.Page No. 1 City Council Meeting of October 1, 2012 (Item No. 4g) Subject: Amend Consultant Contract - Highway 7 / Louisiana Avenue Interchange Project Page 5 Meeting Date: October 1, 2012 Agenda Item #: 4h Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Resolution Supporting Hennepin County Youth Sports Grant RECOMMENDED ACTION: Motion to Adopt Resolution authorizing filing of application and execution of agreement to improve various amenities and lighting in Louisiana Oaks Park under the provisions of the Hennepin County Youth Sports Grant Program. POLICY CONSIDERATION: Is the City Council supportive of applying for this grant for the proposed 2013 Capital Improvement Project (CIP) to improve various amenities and lighting in Louisiana Oaks Park? BACKGROUND: In 2006, the Hennepin County Board of Commissioners passed a resolution to provide funding to extend library hours and allow construction of youth sports facilities through the use of a portion of the sales tax revenue for the new Twins baseball stadium. Up to $4 million annually will be dedicated to Library Ballpark Sundays and the Hennepin County Youth Sports Program. The Hennepin Youth Sports Program was created to provide local units of government the opportunity to develop facilities for amateur sports or recreation. The grants range from $10,000 to $400,000. Eligible recipients include municipalities, park districts or school districts to create, expand or improve sport or recreation facilities. The Minnesota Amateur Sports Commission (MASC) is responsible for managing the grant process on behalf of Hennepin County. The County Board will make the final determination of the grant award recipients. ELIGIBLE PARK PROJECT IN ST. LOUIS PARK: Staff has reviewed the grant program and believes the Louisiana Oaks Park amenity and lighting improvement project is an eligible project since potential improvements are listed as park elements that could be funded through this grant. In our 2013 CIP, there is $250,000 budgeted for the addition of field lights on two fields in Louisiana Oaks Park. These additional lights will comply with the new lighting ordinance. FINANCIAL OR BUDGET CONSIDERATION: The 2012 - 2016 CIP proposes that $250,000 be spent from the Park Improvement Fund to add lighting to two fields at Louisiana Oaks Park in 2013. Staff would like to propose a grant in the amount of $250,000 to allow us to also add new amenities including a sun/picnic/weather protection shelter for the four back fields, installation of a permanent fence to keep play on the field and out of the wooded area, trail improvements in the park, addition of a lightning sensor notification system to the site, and add lighting to one additional soccer/football field for a total of three lighted fields in Louisiana Oaks Park in 2013. City Council Meeting of October 1, 2012 (Item No. 4h) Page 2 Subject: Resolution Supporting Hennepin County Youth Sports Grant VISION CONSIDERATION: Applying for this grant falls in line with the City’s Vision Strategic Direction that “St. Louis Park is committed to being a connected and engaged community”. Attachments: Resolution Prepared by: Stacy Voelker, Administrative Secretary Rick Birno, Recreation Superintendent Reviewed by: Cindy S. Walsh, Director of Parks and Recreation Approved by: Tom Harmening, City Manager City Council Meeting of October 1, 2012 (Item No. 4h) Page 3 Subject: Resolution Supporting Hennepin County Youth Sports Grant RESOLUTION NO. 12-____ RESOLUTION AUTHORIZING FILING OF APPLICATION AND EXECUTION OF AGREEMENT TO DEVELOP SPORT OR RECREATION FACILITIES UNDER THE PROVISIONS OF THE HENNEPIN COUNTY YOUTH SPORTS PROGRAM WHEREAS, Hennepin County, via its Youth Sports Grant Program, provides for capital funds to assist local government units of Hennepin County for the development of sport or recreation facilities, and WHEREAS, the City of St. Louis Park desires to develop Louisiana Oaks Park for the purpose of increasing lighted fields, adding shelter, installing a permanent fence, improving park trails, and adding a lighting sensor system in the park. NOW THEREFORE BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota, as follows: 1. The estimate of the total cost of developing Louisiana Oaks Park shall be $500,000 and the City of St. Louis Park is requesting $250,000 from the Hennepin Youth Sports Program and will assume responsibility for a match requirement of $250,000. 2. The City of St. Louis Park agrees to own, assume one hundred (100) percent of operation costs for Louisiana Oaks Park, and will operate Louisiana Oaks Park for its intended purpose for the functional life of the facility which is estimated to be 25 years. 3. The City of St. Louis Park agrees to enter into necessary and required agreements with Hennepin County for the specific purpose of developing a sport or recreation facility and long-term program direction. 4. That the Director of Parks and Recreation or the City Manager of the City of St. Louis Park are authorized and directed to execute said application and serve as official liaison with Hennepin County or its authorized representative. CERTIFICATION I hereby certify that the foregoing resolution is true and correct copy of the resolution presented to and adopted by the City Council at a duly authorized meeting thereof held on the 1st day of October, 2012 as shown by the minutes of said meeting in my possession. Reviewed for Administration: Adopted by the City Council October 1, 2012 City Manager Mayor Attest: City Clerk Meeting Date: October 1, 2012 Agenda Item #: 4i OFFICIAL MINUTES PLANNING COMMISSION ST. LOUIS PARK, MINNESOTA AUGUST 15, 2012 – 6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Lynne Carper, Claudia Johnston-Madison, Robert Kramer, Dennis Morris, Richard Person, Carl Robertson, Larry Shapiro STAFF PRESENT: Adam Fulton, Gary Morrison, Nancy Sells 1. Call to Order – Roll Call 2. Approval of Minutes of July 18, 2012 Commissioner Robertson moved approval of the minutes of July 18, 2012. Commissioner Morris seconded the motion and the motion passed 6-0-1 (Johnston- Madison abstained). 3. Public Hearings A. Mobile Food Vehicles and Catering – Zoning Ordinance Amendment Applicant: City of St. Louis Park Case No.: 12-21-ZA Gary Morrison, Assistant Zoning Administrator, presented the staff report. He said the proposed ordinance would allow mobile food vehicles as a temporary use with conditions such as regulating where they can operate, lighting, signage, and what can be sold (food and beverages). Commissioner Person asked about Condition (10)a. relating to requirements of state law. Mr. Morrison responded that the mobile food vehicles must be licensed by the state which includes an inspection by the state. The City will not be inspecting these vehicles. Chair Kramer asked why the ordinance is limited to the sale of food, commenting that this kind of business has expanded to other retail sales. Mr. Morrison said there has been some discussion about other uses. Other retail sales would involve the possibility of regulating shops popping up here and there. The food vehicles have to be commercial grade so only those vendors who are serious about the food they are serving will be venturing into this. Another part of the ordinance allows retailers to display and sell merchandise outside at their own shops. Chair Kramer said he’s heard some businesses complain that the start-up costs of a mobile food vehicle are relatively light compared to brick and mortar, taxes, etc. He asked if there was any consideration for those issues. City Council Meeting of October 1, 2012 (Item No. 4i) Page 2 Subject: Planning Commission Meeting Minutes of August 15, 2012 Mr. Morrison responded that there is consideration for those issues and that is one of the reasons vehicles wouldn’t be allowed in the public right-of-way where they could operate in front of an existing restaurant. Commissioner Johnston-Madison stated she supports the ordinance and thinks it is a great way to promote small business. Commissioner Robertson asked about Condition (10)f. regarding noise and asked if this would apply to a traditional ice cream truck. Mr. Morrison said this ordinance does not address solicitors that would drive through or walk through a neighborhood. That requires a solicitor’s permit which is administered through City Code, not by the Zoning Ordinance. Chair Kramer opened the public hearing. He closed the public hearing as no one was present wishing to speak. Commissioner Morris said the city will be revisiting this subject as the nature of this kind of business is changing quickly. Chair Kramer said he supports the ordinance but believes it is just a start as the business is evolving. Commissioner Johnston-Madison made a motion to recommend approval of the Zoning Ordinance amendment pertaining to Mobile Food Vehicles and Catering. Commissioner Robertson seconded the motion, and the motion passed on a vote of 7-0. B. Minnehaha Creek Restoration Project – Conditional Use Permit Location: Minnehaha Creek, between Meadowbrook Road and Louisiana Avenue South Applicants: Minnehaha Creek Watershed District (MCWD) City of St. Louis Park Case No.: 12-17-CUP Adam Fulton, Planner, introduced James Wisker, Director of Projects, Planning and Land Conservation, Minnehaha Creek Watershed District (MCWD). Mr. Wisker spoke about the overall scheme of the restoration project. He said the three main project elements are remeandering the stream (essentially an eco-system and water quality project); stormwater elements which will treat previously untreated water; and the trail system. Mr. Wisker noted that the MCWD and the City are working actively to figure out a funding package for the trail portion. Adam Fulton, provided the staff report for the Conditional Use Permit request for the import and export of soil within the creek channel, and to allow for work in the FP- General Floodplain Overlay District. He summarized the collaborative process which has taken place between the City and MCWD. He spoke about the proposed trail and the City Council Meeting of October 1, 2012 (Item No. 4i) Page 3 Subject: Planning Commission Meeting Minutes of August 15, 2012 two canoe landings. He discussed the staging of the excavation and fill, haul route, and hours of operation. All construction activities will end by 8 p.m. Commissioner Morris asked about trail amenities such as lighting and trash receptacles. He asked if it would be an all season trail. Mr. Fulton said the intent is for an all season trail if warranted by demand, but no funding has been identified at this time. Staff and MCWD have discussed trail elements as bid alternates within the package that will go forward. The hope would be the trail and boardwalk system can be constructed to a high level of amenity. The first priority of the City is to get the bridge in by the MSC. The bridge would allow the bituminous trail to travel on the south side of the creek and switch over to the north side of the creek by the MSC. The City would own, operate and maintain the bituminous segments of the trail. MCWD is interested in owning, operating and maintaining the boardwalk. Commissioner Robertson asked about bituminous trail versus a more natural trail. Mr. Fulton responded that the Parks Dept. has indicated it isn’t possible to complete winter maintenance on a gravel trail with their current equipment. Additionally, it is anticipated that the trail will provide not only recreational use but also direct access to the LRT station, and providing year round access to the LRT station is high priority. Commissioner Carper asked about the creek’s average depth in various seasons and accessibility from the sides of the creek. Mr. Wisker stated that the first phase of the project regards stream hydraulics, width of channel, location of channel, and location of structured trails. He discussed the general nature of the creek and goals for public access. The channel project won’t determine the flow regime of the creek. That varies by rainfall patterns and the dam at Gray’s Bay, Lake Minnetonka. Chair Kramer opened the public hearing. Colleen McLellan, 3965 Meadowbrook Rd., said her commercial property is located directly behind Appliance Smart and alongside the Weiss property where the creek is going to remeander. The bituminous trail would abut the shipping lane of her property. She said the project is exciting but she has concerns and wanted to hear the Planning Commission discussion. She said she has met with Mr. Wisker many times and they have walked the area. She encouraged commissioners to also walk the area. Chair Kramer closed the public hearing as no one else was present wishing to speak. Commissioners Robertson, Person, Carper and Johnston-Madison stated it was a great project. Commissioner Carper added that the Council should be exploring funding, thinking about long-term development, and the additional infrastructure that will be needed. Commissioner Person asked about the connections at both ends of the trail. City Council Meeting of October 1, 2012 (Item No. 4i) Page 4 Subject: Planning Commission Meeting Minutes of August 15, 2012 Mr. Fulton responded that the City has explored that. If the bridge were to be fully replaced there could be a trail connection underneath. As it is not being replaced, staff is discussing the safest way to route people. He said there are stop lights at Louisiana and Excelsior and at Louisiana and Louisiana Circle. The most likely option at this time is to route people up to the stop light at Louisiana Circle and then back to the other side. Mr. Fulton commented that isn’t ideal. The connection on the west end will depend on the LRT station location, and other issues. Commissioner Person made a motion to recommend approval of the Conditional Use Permit to import and export fill materials and conduct work in the General Floodplain Overlay District (FP). Commissioner Johnston-Madison seconded the motion, and the motion passed on a vote of 7-0. 4. Other Business: None 5. Communications: None 6. Adjournment The meeting was adjourned at 7:10 p.m. City Council Meeting of October 1, 2012 (Item No. 4i) Page 5 Subject: Planning Commission Meeting Minutes of August 15, 2012 Study Session - Eliot School Redevelopment Larry Shapiro, Carl Robertson, Dennis Morris, and Lynne Carper in attendance. Dan Hunt, Pete Keely, and Garfield Clark, Developers Adam Fulton, Planner Adam Fulton introduced the developers and explained that there is a redevelopment proposal moving forward for the Eliot School site. He provided information on the redevelopment process, including a neighborhood meeting several weeks earlier and a Housing Authority meeting last week. He stated that the next steps in the process will involve a request by the developer for an amendment to the Comprehensive Plan. It is expected that the development will also require a rezoning and possibly a Planned Unit Development or Variance to move forward. Dan Hunt, Developer, Hunt & Associates, presented the proposal and some general details about the firm’s background and approach to development on the site. Pete Keely, Collage Architects, presented the redevelopment proposal and provided details about the site design. He stated that the development will include 144 new units, and be constructed as two new apartment buildings with 72 units each. The buildings will be 3 stories in height, but will taper to 2 stories in several areas to be sensitive to the neighborhood. He noted that there are possibly 2 or 3 new single family lots included as part of the current design for the site. Questions from the Commissioners included the overall density of the project, whether there might be parking restrictions on Idaho and Hampshire, and the future use of the extra lot across Hampshire currently owned by the School District. The developer and staff provided further information to answer the questions. The developer indicated that they hope to start construction in June of 2013, if the approval process goes as planned. Respectfully submitted, Nancy Sells Administrative Secretary Meeting Date: October 1, 2012 Agenda Item #: 6a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Special Meeting Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Special Session Other: TITLE: Public Hearing to Consider 2013 Fees RECOMMENDED ACTION: Mayor to close public hearing. Motion to Approve 1st Reading of Ordinance adopting fees for 2013 and set Second Reading for October 15, 2012. POLICY CONSIDERATION: Does the Council agree with the proposed revisions to the fee schedule to reflect adjustments to fees charged for programs and services called for by ordinance? BACKGROUND: Each year our fees are reviewed by departments prior to renewal and as part of our budget process. Some fees must be set and adjusted in accordance with our ordinance; other fees are allowed to be set administratively. All fees are reviewed each year based on comparison to other cities in the metro area, changes in regulations and to make sure our business costs are covered for such service. Sec. 1-19 of the St. Louis Park Ordinance Code states that fees called for within individual provisions of the Code are to be set by ordinance and listed as Appendix A of the Code. Fees must also be reviewed and reestablished annually. The Administrative Services Department has worked with individual departments to complete this review and their recommendations are included in the attached ordinance. A public hearing notice was published September 20, 2012 informing interested persons of the city’s intent to consider fees. Fees, rates and charges called for by resolution or set by a department are not required by law to be included in the Appendix A City Code fee schedule. Next steps: If the first reading of the ordinance is approved, the second reading is scheduled for October 15, 2012. If approved, the fee increases will be effective January 1, 2013. Staff will be presenting proposed 2013 liquor fees for approval by resolution at the November 19, 2012 City Council Meeting. Utility fees for 2013 water, sewer, storm water, and solid waste rates are scheduled for approval later this year. FINANCIAL OR BUDGET CONSIDERATION: The Fire, Police, and Information Resources Departments are recommending no increases in their fees for 2013. The Inspections and Community Development Departments have each proposed fee increases, additions, or removals that are the shown in Appendix A (attached). Administrative Penalties A new section was added and titled “Administrative” to reflect its use among all departments. The Administrative Penalties fees were included in Ordinance 2420-12 adopted August 20, 2012. City Council Meeting of October 1, 2012 (Item No. 6a) Page 2 Title: Public Hearing to Consider 2013 Fees Finance Department/Assessing This section is retitled to more appropriately reflect the character of the fee under the heading. The recording fee was duplicated under the Public Works Department and is now only listed under Assessing. Community Development Department Community Development is proposing to separate the driveway and parking lot installation permits, creating a more affordable driveway permit. Inspections Department Permit and license fees proposed by the Inspections Department were increased to reflect business costs and remain consistent with the “fee for service” program philosophy. In some cases fee amounts were rounded to the nearest $5 for ease in calculation. A few new fees were developed in the interest to simplify and better serve our customers. Proposed changes will create flat fees for residential reroofs and residing projects on homes and garages from the current value calculated fee amounts. Implementing flat fees will allow these types of Building Permits to be issued as an E-Permit through LOGIS, expanding our internet self-service permit choices. Fees associated with Environmental Health licensing for: Food and Beverage Establishments; Lodging; and Public Sanitary Facilities are removed from the 2013 Fees since these functions will be handled by the MN Department of Health and the MN Department of Agriculture in 2013. Another fee change associated with the change in the delegation agreement with the state is to establish a new fee category for Tanning facilities/beds. This is one of the several business license types that was not delegated and will remain as part of the city licensing/inspection program. VISION CONSIDERATION: Not applicable. Attachments: Ordinance Summary Ordinance Prepared by: Ray French, Administrative Services Intern Reviewed by: Nancy Stroth, City Clerk Nancy Deno, Deputy City Manager/HR Manager Approved by: Tom Harmening, City Manager City Council Meeting of October 1, 2012 (Item No. 6a) Page 3 Title: Public Hearing to Consider 2013 Fees ORDINANCE NO. ____-12 ORDINANCE ADOPTING FEES FOR CALENDAR YEAR 2013 THE CITY COUNCIL OF ST. LOUIS PARK ORDAINS: Section 1. Fees called for within individual provisions of the City Code are hereby set by this ordinance for calendar year 2013. Section 2. The Fee Schedule as listed below shall be included as Appendix A of the City Code and shall replace those fees adopted October 3, 2011 by Ordinance No. 2404-11 for the calendar year 2012 which is hereby rescinded. ADMINISTRATIVE PENALTIES Chapter 4 – Animal Regulations $50 Chapter 6 – Buildings & Building Regulations Chapter 6, Article V – Property Maintenance Code $100 Chapter 8 – Business and Business Licenses $100 Chapter 12 – Environment $50 Chapter 12, Section 1 – Environment & Public Health Regulations Adopted by Reference $100 Chapter 12, Section 157 – Illicit Discharge and Connection $100 Chapter 12, Section 159 – Wetland Protection $100 Chapter 14 – Fire and Fire Prevention $50 Chapter 14, Section 75 – Open burning without permit $100 Chapter 20 – Parks and Recreation $50 Chapter 22 – Solid Waste Management $50 Chapter 22, Section 35b – Contagious Disease Refuse $200 Chapter 24 – Streets, sidewalks & Public Places $50 Chapter 24, Section 24-43 – Household Trash & Recycling Containers blocking public way $25 Chapter 24, Section 50 – Public Property: Defacing or injuring $150 Chapter 24, Section 51 – Sweeping leaves into street prohibited $100 Chapter 24, Section 151 – Work in public right-of-way without a permit $100 Chapter 26 – Subdivision $100 Violation of a condition associated with a Subdivision approval. $750 Chapter 32 – Utilities $50 Chapter 36 – Zoning $50 Chapter 36, Section 37 – Conducting a Land Use not permitted in the zoning district $100 Violation of a condition associated with a Conditional Use Permit, Planned Unit Development, or Special Permit approval $750 Repeat Violations within 24 Months Double the amount of the fine imposed for the previous violation, up to a maximum of $2,000. For example, if there were four occurrences of a violation that carried a $50 fine, the fine for the fourth occurrence would be $40 (first: $50; second: $100; third: $200; fourth: $400). City Council Meeting of October 1, 2012 (Item No. 6a) Page 4 Title: Public Hearing to Consider 2013 Fees Fines in addition to abatement and licensing inspections Fines listed above may be in addition to fees associated with abatement and licensing inspections. ASSESSING Record Deed Transfer with Hennepin County $120 + Recording cost CITY CLERK’S OFFICE Administrative Penalties First Violation $25 Each Subsequent in Same Calendar Year add $10 to previous fine Domestic Partnership Registration Application Fee $50 Amendment to Application Fee $25 Termination of Registration Fee $25 COMMUNITY DEVELOPMENT DEPARTMENT Comprehensive Plan Amendments $2,000 Conditional Use Permit $2,000 Major Amendment $2,000 Minor Amendment $1,000 Fence Permit Installation $15 Numbering of Buildings (New Addresses) $50 Official Map Amendment $500 Parking Lot/Driveway Permit Installation/Reconstruction $75 Driveway Permit $25 Planned Unit Development Preliminary PUD $2,000 Final PUD $2,000 Prelim/Final PUD Combined $2,250 PUD - Major Amendment $2,000 PUD - Minor Amendment $1,000 Recording Filing Fee Single Family $50 Other Uses $120 Registration of Land Use $50 Sign Permit Erection of Temporary Sign $30 Erection of Real Estate, Construction Sign 40+ ft $30 Installation of Permanent Sign without footings $75 Installation of Permanent Sign with footings $100 Special Permits Major Amendment $2,000 Minor Amendment $1,000 Street, Alley, Utility Vacations $800 Subdivision Dedication Park Dedication (in lieu of land) Commercial/Industrial Properties 5 % of current market value of the unimproved land as determined by city assessor City Council Meeting of October 1, 2012 (Item No. 6a) Page 5 Title: Public Hearing to Consider 2013 Fees Subdivision Dedication (continued) Multi-family Dwelling Units $1,500 per dwelling unit Single-family Dwelling Units $1,500 per dwelling unit Trails $225 per residential dwelling unit Subdivisions/Replats Preliminary Plat $800 plus $90 per lot Final Plat $500 Combined Process and Replats $900 plus $90 per lot Exempt and Administrative Subdivisions $300 Temporary Use Carnival & Festival over 14 days $1,000 Time Extension $150 Traffic Management Plan Administrative Fee $0.10 per sq ft of gross floor Tree Replacement Cash in lieu of replacement trees $115 per caliper inch Variances Commercial $500 Residential $300 Zoning Appeal $300 Zoning Letter $50 Zoning Map Amendments $2,000 Zoning Permit Accessory Structures, 120 ft or less $25 Zoning Text Amendments $2,000 FINANCE DEPARTMENT Recording Deed transfer with Hennepin County $120 + Recording cost - FIRE DEPARTMENT Fireworks Display Permit Actual costs incurred Service Fees Service Fee for fully-equipped & staffed vehicles $500 per hour for a ladder truck $325 per hour for a full-size fire truck $255 per hour for a rescue unit Service Fee of a Chief Officer $100 per hour After Hours Inspections $65 per hour (minimum 2 hrs.) Tent Permit Tent over 200 sq. ft. $75.00 Canopy over 400 sq. ft. $75.00 INSPECTIONS DEPARTMENT Building Demolition Deposit 1 & 2 Family Residential & Accessory Structures $2,500 All Other Buildings $5,000 Building Demolition Permit 1 & 2 Family Residential & Accessory Structures $150 All Other Buildings $220 Building Moving Permit $500 Business Licenses Billboards $140 per billboard Commercial Entertainment $275 $280 Courtesy Bench $45 $50 City Council Meeting of October 1, 2012 (Item No. 6a) Page 6 Title: Public Hearing to Consider 2013 Fees Dog Kennel $145 $150 Environmental Emissions $310 Lodging (Hotel/Motel) Building Fee $165 Unit Fee $10 Massage Therapy Establishment $325 $330 Massage Therapy License $95 $100 Therapists holding a Massage Therapy Establishment License $25 Pawnbroker License Fee $2,000 Per Transaction Fee $2 Investigation Fee $1,000 Penalty $50 per day Sexually Oriented Business Investigation Fee (High Impact) $500 High Impact $4,500 Limited Impact $125 Tobacco Products & Related Device Sales $485 Vehicle Parking Facilities Enclosed Parking $210 $215 Parking Ramp $160 $165 Certificate of Occupancy For each condominium unit completed after building occupancy $100 Change of Use (does not apply to 1 & 2 family dwellings) Up to 5,000 sq ft $290 $300 5,001 to 25,000 sq ft $440 $450 25,001 to 75,000 sq ft $650 $670 75,001 to 100,000 sq ft $860 $880 100,000 to 200,000 sq ft $1,070 $1,100 above 200,000 sq ft $1,280 $1,310 Temporary Certificate of Occupancy $50 $55 Certificate of Property Maintenance Certificate of Property Maintenance Extension $50 $55 Change in Ownership Condominium Unit $135 $140 Duplex (2 Family dwellings) $295 $300 Multi-Family (apartment) Buildings $250 per building + $12 per unit Single Family Dwellings $215 $220 All Other Buildings: Up to 5,000 sq ft $290 $300 5,001 – 25,000 sq ft $440 $450 25,001 to 75,000 sq ft $650 $670 75,001 to 100,000 sq ft $860 $880 100,000 to 200,000 sq. ft $1,070 $1,100 above 200,000 sq. ft $1,280 $1,310 Temporary Certificate of Property Maintenance $65 $70 Construction Permits (building, electrical, fire protection, mechanical, plumbing, pools, utilities) Building and Fire Protection Permits Valuation Up to $500 Base Fee $45 City Council Meeting of October 1, 2012 (Item No. 6a) Page 7 Title: Public Hearing to Consider 2013 Fees $500.01 to $2,000.00 Base Fee $45 + $2 for each additional (or fraction thereof) $100 over $500.01 $2,000.01 to $25,000.00 Base Fee $75 + $15 for each additional (or fraction thereof) $1,000 over $2,000.01 $25,000.01 to $50,000.00 Base Fee $420 + $10 for each additional (or fraction thereof) $1,000 over $25,000.01 $50,000.01 to $100,000.00 Base Fee $670 + $7 for each additional (or fraction thereof) $1,000 over $50,000.01 $100,000.01 to $500,000.00 Base Fee $1,020 + $5.60 for each additional (or fraction thereof) $1,000 over $100.000.01 $500,000.01 to $1,000,000.00 Base Fee $3,260 + $4.75 for each additional (or fraction thereof) $1,000 over $500,000.01 $1,000,000.01 and up Base Fee $5,635 + $4.25 for each additional (or fraction thereof) $1,000 over $1,000,000.01 Electrical Permit Installation, Replacement, Repair $45 + 1.75% of job valuation Installation of traffic signals per location $150 Single family, one appliance $45 Erosion Control Permit Application and Review $150 ISTS Permit (sewage treatment system install or repair) $125 Mechanical Permit Installation, Replacement, Repair $45 + 1.75% of job valuation Single Family Exceptions: Replace furnace, boiler or furnace/AC $62 $65 Install single fuel burning appliance with piping $62 $65 Install, replace or repair single mechanical appliance $45 Plumbing Permit Installation, Replacement, Repair $45 + 1.75% of job valuation Single Family Exceptions: Repair/replace single plumbing fixture $45 Private Swimming Pool Permit Building permit fees apply Public Swimming Pool Permit Building permit fees apply Sewer & Water Permit (all underground private utilities) Installation, Replacement, Repair $45 + 1.75% of job valuation Single Family Exceptions: Replace/repair sewer or water service $73 $75 Competency Exams Fees Mechanical per test $30 Renewal - 3 year Mechanical $30 Contractor Licenses Mechanical $95 $100 Solid Waste $195 $200 Tree Maintenance $85 $90 City Council Meeting of October 1, 2012 (Item No. 6a) Page 8 Title: Public Hearing to Consider 2013 Fees Dog Licenses 1 year $25 2 year $37 $40 3 year $50 Potentially Dangerous Dog License – 1 year $100 Dangerous Dog License – 1 year $250 Interim License $15 Off-Leash Dog Area Permit (non-resident) $55 Penalty for no license $40 Food and Beverage Equipment Permit Installation (used equipment valued as new) $50 + 1.75% permit valuation Plan Review Fee 35% of permit fee Food and Beverage Licenses Class E (multi-site educational facilities) $2,800 High + & large grocery store (25,000 sq ft +) $1,325 High + small grocery store (to 25,000 sq ft) $925 Class H (establishment with on-site preparation of food and dining service) $850 Class L - (prepackaged food) $225 Food and Beverage Licenses (continued) Class M - (coffee shop) $580 Class V - (food vending machine) $15 Temporary Food Service 3+ days $150 1 to 3 days $100 Concession - Seasonal (Class S) $180 Prepackaged Food Only $40 Inspections After Hours Inspections $65 per hour (minimum 2 hrs.) Installation of permanent sign w/footing inspection Based on valuation using building permit table Re-Inspection Fee (after correction notice issued and has not been corrected within 2 subsequent inspections) $130 Insurance Requirements A minimum of: Circus $1,000,000 General Liability Commercial Entertainment $1,000,000 General Liability Mechanical Contractors $1,000,000 General Liability Solid Waste $1,000,000 General Liability Tree Maintenance & Removal $1,000,000 General Liability Vehicle Parking Facility $1,000,000 General Liability ISTS Permit Sewage treatment system install or repair $125 License Fees - Other Investigation Fee $300 per establishment requiring a business license Late Fee 25% of license fee (minimum $50) License Reinstatement Fee $250 Transfer of License (new ownership) $75 Plan Review Building Permits 65% of Permit Fee Repetitive Building 25% of Permit Fee for Duplicate Structure City Council Meeting of October 1, 2012 (Item No. 6a) Page 9 Title: Public Hearing to Consider 2013 Fees Electrical Permits 35% of Permit Fee Mechanical Permits 35% of Permit Fee Plumbing Permits 35% of Permit Fee Sewer & Water Permits 35% of Permit Fee Single Family Interior Remodel Permits 35% of Permit Fee Public Sanitary Facilities - Swimming Pools, Whirlpool, Sauna (Dry or Steam), Public Bath or Shower, Tanning Beds or Similar Facilities Class I $820 Class II $450 Class III $285 Rental Housing License Condominium/Townhouse/Cooperative $75 per unit $80 per unit Duplex both sides non-owner occupied $145 per duplex $150 per duplex Housing Authority owned single family dwelling units $15 per unit Multiple Family Per Building $165 $170 Per Unit $11 $12 Single Family Unit $95 per dwelling unit $100 per dwelling unit Temporary Noise Permit $60 Temporary Use Permits Amusement Rides, Carnivals & Circuses $260 Commercial Film Production Application $80 Petting Zoos $60 Temporary Outdoor Retail Sales $110 Vehicle Decals Catering $75 Solid Waste $20 Tree Maintenance & Removal $8 POLICE DEPARTMENT Animals Animal Impound Initial impoundment $25 2nd offense w/in year $40 3rd offense w/in year $50 4th offense w/in year $75 Boarding Per Day $25 Dangerous Dog Annual Review Hearing $250 Potentially Dangerous Dog Annual Review Hearing $100 Criminal Background Investigation Volunteers & Employees $5 False Alarm First $0 Each subsequent in same year $100 Late payment fee 10% Solicitor/Peddler Registration $150 Lost ID Replacement Fee $25 Vehicle Forfeiture Administrative fee in certain vehicle forfeiture cases $250 City Council Meeting of October 1, 2012 (Item No. 6a) Page 10 Title: Public Hearing to Consider 2013 Fees PUBLIC WORKS DEPARTMENT Installation/repair of Sidewalk, Curb Cut or Curb and Gutter Permit $10 per 10 linear feet Administrative Fee (all permits) $50 Permit to Exceed Vehicle Weight Limitations (MSC) $30 each Record Deed Transfer with Hennepin County $120 + Recording Cost Winter Parking Permit Caregiver parking $25 No off-street parking available No Charge Off-street parking available $125 Work in Public Right-of-Way Permit Administrative Fee (all permits) $50 Hole in Roadway/Blvd (larger than 10" diameter) $50 per hole Trenching in Roadway $400 per 100 linear feet (minimum $400) Trenching in Boulevard $200 per 100 linear feet (minimum $200) Section 3. This ordinance shall take effect January 1, 2013. Public Hearing October 1, 2012 Second Reading October 15, 2012 Date of Publication October 25, 2012 Date Ordinance takes effect January 1, 2013 Reviewed for Administration: Adopted by the City Council October 15, 2012 City Manager Mayor Attest: Approved as to form and execution: City Clerk City Attorney City Council Meeting of October 1, 2012 (Item No. 6a) Page 11 Title: Public Hearing to Consider 2013 Fees SUMMARY ORDINANCE NO. _____-12 AN ORDINANCE ADOPTING FEES CALLED FOR BY ORDINANCE FOR CALENDAR YEAR 2013 This ordinance sets 2013 fees as outlined in Appendix A of the City Code of Ordinances. The fee ordinance is modified to reflect the cost of providing services and is completed each year to determine what, if any, fees require adjustment. This ordinance shall take effect January 1, 2013. Adopted by the City Council October 15, 2012 Jeffrey W. Jacobs /s/ Mayor A copy of the full text of this ordinance is available for inspection with the City Clerk. Published in St. Louis Park Sailor: October 25, 2012 Meeting Date: October 1, 2012 Agenda Item #: 6b Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Public Hearing and First Reading of an Ordinance Granting a Natural Gas Utility Franchise to CenterPoint Energy Resources Corp. RECOMMENDED ACTION: Mayor to close public hearing. Motion to approve first reading of an Ordinance granting CenterPoint Energy Resources Corp. a non-exclusive natural gas utility franchise and set Second Reading for October 15, 2012. POLICY CONSIDERATIONS: Does Council: 1. Wish to grant CenterPoint Energy a natural gas utility franchise? 2. Have concerns with any of the terms in the franchise? BACKGROUND: History In 2003, the City granted a utility franchise to CenterPoint Energy (CPE) which is due to expire June 30, 2013. For a variety of reasons, staff is proposing to adopt a new CPE Franchise Ordinance utilizing the same process, steps, and schedule as that proposed for Xcel Energy who’s franchise agreement expires February 20, 2013. CPE and city staff began discussing renewal of this franchise earlier this year at which time possible issues or concerns were discussed. In April, CPE provided us a proposed ordinance for consideration. City Attorney Tom Scott has been actively involved in negotiation discussions and in reviewing and commenting on the proposed ordinance. This topic was presented to the City Council at the July 23rd Study Session and was followed up with a staff / Council discussion at the August 13th Study Session. City staff has not identified any issues associated with granting a new utility franchise to CPE and has been working with CPE staff to revise their proposed ordinance to make it generally consistent with the Xcel Energy utility franchise ordinance along with increasing the current basic Franchise Fee by $0.50/month. CPE seems generally agreeable in doing this. Thus, based on discussions with CPE reps, City staff is proposing use of the proposed CPE ordinance subject to the following: 1. Ordinance term shortened from 20 to 10 years 2. Subjects CPE to city administrative regulations / requirements 3. Requires CPE to provide city mapping information of its facilities 4. Requires prompt facility relocations by CPE when necessary 5. Adoption of ordinance without CPE consent requirement City Council Meeting of October 1, 2012 (Item No. 6b) Page 2 Subject: Public Hearing & 1st Reading of Ordinance Granting a Natural Gas Utility Franchise to CPE Adoption Process and Schedule The following steps outline the adoption process to be followed: 1. Ordinances must contain all the terms and conditions of the franchise 2. Franchise ordinances require a public hearing 3. Hearing notice must be published at least once in the City's official newspaper at least twenty (20) days prior to the public hearing. 4. At least seven days must pass between first reading (public hearing) and 2nd reading 5. At second reading motion will be “Motion to adopt the ordinance, approve the summary and authorize summary publication” 6. Ordinance becomes effective 15 days following summary publication Based on the above process, staff has developed the following steps and schedule for adopting the franchise ordinance and franchise fee ordinance: Study Session - Written Report July 23, 2012 Study Session - Discussion Aug 13, 2012 Submit Public Hearing Notice to Sun Sailor Aug 30, 2012 Public Hearing Notice Published Sept 6, 2012 First Reading and Public Hearing Oct 1, 2012 Second Reading (adopt franchise and fee ordinances, approve summary, and authorize summary publication) Oct 15, 2012 Submit Summary to Sun Sailor Oct 18, 2012 Summary Publication Oct 25, 2012 Franchise Ordinance Effective Date Nov 9, 2012 Franchise Fee Ordinance Effective Date (90 day PUC submission period) Jan 23, 2013 Summary and Next Steps CPE is currently reviewing the staff proposed ordinance and their comments are expected prior to the public hearing and 1st reading. They have been notified that it is our City Attorney’s opinion that their consent to the Ordinance is not required. This is a significant issue which can impact the ability of the city to impose a franchise fee which requires further discussion. Staff recommends that Council approve 1st Reading and set 2nd reading for October 15th as per the schedule outlined above. Staff further recommends that this matter be placed on the October 8 study session agenda for further discussion with staff and the City Attorney prior to 2nd reading. The current Franchise with CPE is effective through June 30, 2013. Per the schedule above, the planned effective date of the new Franchise would be January 23, 2013. FINANCIAL OR BUDGET CONSIDERATIONS: The city’s Pavement Management Program is currently funded by franchise fee revenues, collected for us by both Xcel and CPE, along with some general funds. Franchise fees can be collected by a utility when the city has a franchise ordinance providing for this. Thus, failure to grant CPE a utility franchise would result in the loss of franchise fee revenues for our pavement management program. City Council Meeting of October 1, 2012 (Item No. 6b) Page 3 Subject: Public Hearing & 1st Reading of Ordinance Granting a Natural Gas Utility Franchise to CPE Based on the current fees, total franchise fees generate approximately $1.35 million annually (CPE - $510,654; Xcel - $843,445) which are used to fund the Pavement Management Program. The proposed increase in the CPE franchise fee would add approximately $105,000 in additional annual revenue to the Pavement Management Program. VISION CONSIDERATION: Not applicable. Attachments: Franchise Ordinance Prepared by: Michael P. Rardin, Public Works Director Tom Scott, City Attorney Reviewed by: Steve Heintz, Finance Supervisor Approved by: Tom Harmening, City Manager City Council Meeting of October 1, 2012 (Item No. 6b) Page 4 Subject: Public Hearing & 1st Reading of Ordinance Granting a Natural Gas Utility Franchise to CPE CenterPoint Energy Gas Franchise Ordinance ORDINANCE NO. ____-12 CITY OF ST. LOUIS PARK, HENNEPIN COUNTY, MINNESOTA AN ORDINANCE GRANTING CENTERPOINT ENERGY RESOURCES CORP., d/b/a CENTERPOINT ENERGY MINNESOTA GAS (“CENTERPOINT ENERGY”), ITS SUCCESSORS AND ASSIGNS, A NONEXCLUSIVE FRANCHISE TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN FACILITIES AND EQUIPMENT FOR THE TRANSPORTATION, DISTRIBUTION, MANUFACTURE AND SALE OF GAS ENERGY FOR PUBLIC AND PRIVATE USE AND TO USE THE PUBLIC WAYS AND GROUNDS OF THE CITY OF ST. LOUIS PARK, HENNEPIN COUNTY, MINNESOTA, FOR SUCH PURPOSE; AND, PRESCRIBING CERTAIN TERMS AND CONDITIONS THEREOF THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK, HENNEPIN COUNTY, MINNESOTA, ORDAINS: SECTION 1. DEFINITIONS. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: 1.1 City. The City of St. Louis Park, County of Hennepin, State of Minnesota. 1.2 City Utility System. Facilities used for providing non-energy related public utility service owned or operated by City or agency thereof, including sewer and water service, but excluding facilities for providing heating, lighting or other forms of energy. 1.3 Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government, which preempts all, or part of the authority to regulate gas retail rates now vested in the Minnesota Public Utilities Commission. 1.4 Company. CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Minnesota Gas (“CenterPoint Energy”) its successors and assigns including all successors or assigns that own or operate any part or parts of the Gas Facilities subject to this Franchise. 1.5 Gas Facilities. Gas transmission and distribution pipes, lines, ducts, fixtures, and all necessary equipment and appurtenances owned or operated by the Company for the purpose of providing gas energy for retail or wholesale use. 1.6 Notice. A written notice served by one party on the other party referencing one or more provisions of this Ordinance. Notice to Company shall be mailed to CenterPoint Energy, Minnesota Division Vice President, 800 LaSalle Avenue, Minneapolis, Minnesota 55402. Notice to the City shall be mailed to the City Administrator, City Hall, 5005 Minnetonka Blvd., St. Louis Park, MN 55416. Either party may change its respective address for the purpose of this Ordinance by written notice to the other party. City Council Meeting of October 1, 2012 (Item No. 6b) Page 5 Subject: Public Hearing & 1st Reading of Ordinance Granting a Natural Gas Utility Franchise to CPE 1.7 Public Ground. Land owned by the City for park, open space or similar purpose, which is held for use in common by the public. 1.8 Public Way. Any street, alley, walkway or other public right-of-way within the City and under the jurisdiction of the City. SECTION 2. ADOPTION OF FRANCHISE. 2.1 Grant of Franchise. City hereby grants Company, for a period of 10 (ten) years from the effective date of this Ordinance, the right to transmit and furnish gas energy for light, heat, power and other purposes for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future. For these purposes, Company may construct, operate, repair and maintain Gas Facilities in, on, over, under and across the Public Grounds and Public Ways of City, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject, however, to such reasonable regulations as may be imposed by the City pursuant to ordinance or administratively as part of the permit process. 2.2 Service and Rates. The service to be provided and the rates to be charged by Company for gas service in City are subject to the jurisdiction of the Commission. The area within the City in which Company may provide gas service is subject to the provisions of Minnesota Statutes, Section 216B.40. 2.3 Continuation of Franchise. Upon expiration of the ten (10) year franchise term, this Ordinance will remain in effect until a new franchise ordinance is adopted, or until ninety (90) days after the City serves written Notice on the Company of its intention to allow this Ordinance to expire, but in no event shall this Ordinance continue for more than one year after expiration of the 10-year term set forth in Section 2.1. SECTION 3. LOCATION, OTHER REGULATIONS. 3.1 Location of Facilities. Gas Facilities shall be located, constructed and maintained so as not to interfere with the safety and convenience of ordinary travel along and over Public Ways and so as not to disrupt normal operation of any City Utility System previously installed therein. Gas Facilities shall be located on Public Grounds as determined by the City. Company's construction, reconstruction, operation, repair, maintenance and location of Gas Facilities shall be subject to permits if required by separate ordinance and to other reasonable regulations of the City to the extent not inconsistent with the terms of this franchise ordinance. Company may abandon underground Gas Facilities in place provided at the City’s request, Company will remove abandoned Gas Facilities interfering with a City improvement project, but only to the extent such facility is uncovered by excavation as part of the City improvement project. The Company shall maintain records describing the exact location of all abandoned and retired Gas Facilities within the Public Ways and Public Grounds, produce such records at the City’s request and comply with the location requirements of Section 216D.04 with respect to all Gas Facilities, including abandoned and retired Gas Facilities not located in Public Ways and Public Grounds. 3.2 Field Locations. Company shall provide field locations for its underground Gas Facilities within City consistent with the requirements of Minnesota Statutes, Chapter 216D. City Council Meeting of October 1, 2012 (Item No. 6b) Page 6 Subject: Public Hearing & 1st Reading of Ordinance Granting a Natural Gas Utility Franchise to CPE 3.3 Mapping Information. If requested by City, the Company must promptly provide complete and accurate mapping information for any of its Gas Facilities in accordance with the requirements of Minnesota Rules 7819.4000 and 7819.4100. 3.4 Street Openings. Company shall not open or disturb any Public Ground or Public Way for any purpose without first having obtained a permit from the City, if required by a separate ordinance or administratively, for which the City may impose a reasonable fee. Permit conditions imposed on Company shall not be more burdensome than those imposed on other utilities for similar facilities or work. Company may, however, open and disturb any Public Ground or Public Way without permission from the City where an emergency exists requiring the immediate repair of Gas Facilities. In such event Company shall notify the City by telephone to the office designated by the City as soon as practicable. Not later than the second working day thereafter, Company shall obtain any required permits and pay any required fees. 3.5 Restoration. After undertaking any work requiring the opening of any Public Ground or Public Way, Company shall restore the same, including paving and its foundation, to as good a condition as formerly existed, and shall maintain any paved surface in good condition for two years thereafter. The work shall be completed as promptly as weather permits, and if Company shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and material, and put the Public Ground or Public Way in the said condition, the City shall have, after demand to Company to cure and the passage of a reasonable period of time following the demand, but not to exceed five days, the right to make the restoration at the expense of Company. Company shall pay to the City the cost of such work done for or performed by the City. This remedy shall be in addition to any other remedy available to the City for noncompliance with this Section 3.5. 3.6 Avoid Damage to Gas Facilities. Nothing in this Ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Gas Facilities while performing any activity. 3.7 Notice of Improvements. The City must give Company reasonable notice of plans for improvements to Public Grounds or Public Ways where the City has reason to believe that Gas Facilities may affect or be affected by the improvement. The notice must contain: (i) the nature and character of the improvements, (ii) the Public Grounds and Public Ways upon which the improvements are to be made, (iii) the extent of the improvements, (iv) the time when the City will start the work, and (v) if more than one Public Ground or Public Way is involved, the order in which the work is to proceed. The notice must be given to Company a sufficient length of time in advance of the actual commencement of the work to permit Company to make any necessary additions, alterations or repairs to its Gas Facilities. 3.8 Emergency Response. As emergency first-responders, when a public safety concern exists both the City and Company shall respond to gas emergencies within the City without additional direct fee or expense to either City or Company. SECTION 4. RELOCATIONS. 4.1 Relocation of Gas Facilities in Public Ways. Company shall promptly and at its own expense, with due regard for seasonal working conditions, permanently remove and relocate its facilities in any public way when it is necessary to prevent interference, and not merely for convenience of the local government unit, in connection with: (1) a present or future local government use of the right-of-way for a public project; (2) the public health or safety; or (3) the safety and convenience of travel over the right-of-way. City Council Meeting of October 1, 2012 (Item No. 6b) Page 7 Subject: Public Hearing & 1st Reading of Ordinance Granting a Natural Gas Utility Franchise to CPE 4.2 Relocation of Gas Facilities in Public Ground. City may require Company, at Company’s expense, to relocate or remove its Gas Facilities from Public Ground upon a finding by City that the Gas Facilities have become or will become a substantial impairment to the existing or proposed public use of the Public Ground. 4.3 Projects with Federal Funding. Relocation or removal, or rearrangement of any Company Gas Facilities made necessary because of the extension into or through City of a federally aided highway project shall be governed by the provisions of Minnesota Statutes Section 161.45 and 161.46. 4.4 No Waiver. The provisions of this franchise apply only to facilities constructed in reliance on a franchise from the City and shall not be construed to waive or modify any rights obtained by Company for installations within a Company right-of-way acquired by easement or prescriptive right before the applicable Public Ground or Public Way was established, or Company's rights under state or county permit. SECTION 5. TREE TRIMMING. Company may trim all trees and shrubs in the Public Grounds and Public Ways of City to the extent Company finds necessary to avoid interference with the proper construction, operation, repair and maintenance of any Gas Facilities installed hereunder, provided that Company shall save the City harmless from any liability arising therefrom, and subject to permit or other reasonable regulation by the City. SECTION 6. INDEMNIFICATION. 6.1 Indemnity of City. Company shall indemnify, keep and hold the City free and harmless from any and all liability on account of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection, the issuance of permits, or the operation of the Gas Facilities located in the Public Grounds and Public Ways. The City shall not be indemnified for losses or claims occasioned through its own negligence except for losses or claims arising out of or alleging the City's negligence as to the issuance of permits for, or inspection of, Company's plans or work. The City shall not be indemnified if the injury or damage results from the performance in a proper manner, of acts reasonably deemed hazardous by Company, and such performance is nevertheless ordered or directed by City after notice of Company's determination. 6.2 Defense of City. In the event a suit is brought against the City under circumstances where this agreement to indemnify applies, Company at its sole cost and expense shall defend the City in such suit if written notice thereof is promptly given to Company within a period wherein Company is not prejudiced by lack of such notice. If Company is required to indemnify and defend, it will thereafter have control of such litigation, but Company may not settle such litigation without the consent of the City, which consent shall not be unreasonably withheld. This section is not, as to third parties, a waiver of any defense or immunity (including liability limits pursuant to Minn. Stat. Chapter 466) otherwise available to the City and Company, in defending any action on behalf of the City, shall be entitled to assert in any action every defense or immunity that the City could assert in its own behalf. City Council Meeting of October 1, 2012 (Item No. 6b) Page 8 Subject: Public Hearing & 1st Reading of Ordinance Granting a Natural Gas Utility Franchise to CPE SECTION 7. VACATION OF PUBLIC WAYS. The City shall give Company at least two weeks prior written notice of a proposed vacation of a Public Way. Except where required for a City improvement project, the vacation of any Public Way, after the installation of Gas Facilities, shall not operate to deprive Company of its rights to operate and maintain such Gas Facilities, until the reasonable cost of relocating the same and the loss and expense resulting from such relocation are first paid to Company. In no case, however, shall City be liable to Company for failure to specifically preserve a right-of-way under Minnesota Statutes, Section 160.29. SECTION 8. CHANGE IN FORM OF GOVERNMENT. Any change in the form of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance. SECTION 9. FRANCHISE FEE. 9.1 Fee Schedule. During the term of the franchise hereby granted, the City may impose on Company a franchise fee not to exceed five percent (5%) of the Company’s Gross Revenues, as hereinafter defined, by collecting the amounts calculated on a flat fee/per month basis as indicated in a Fee Schedule set forth in a separate ordinance from each customer in the designated Company Customer Class. 9.2 Separate Ordinance. The franchise fee shall be imposed by a separate ordinance duly adopted by the City Council, which ordinance shall not be adopted until at least 90 days after written notice enclosing such proposed ordinance has been served upon Company by certified mail. The fee shall not become effective until the beginning of a Company billing month at least 90 days after written notice enclosing such adopted ordinance has been served upon Company by certified mail. No action by the City to implement a separate ordinance will commence until this Ordinance is effective. A separate ordinance which imposes a lesser franchise fee on the residential class of customers than the maximum amount set forth in Section 9.1 above shall not be effective against Company unless the fee imposed on each other customer classification is reduced proportionately in the same or greater amount per class as the reduction represented by the lesser fee on the residential class. 9.3 Terms Defined. For the purpose of this Section 9, the following definitions apply: 9.3.1 “Customer Class” shall refer to the classes listed on the Fee Schedule and as defined or determined in Company’s gas tariffs on file with the Commission. 9.3.2 “Fee Schedule” refers to the schedule in Section 9.1 setting forth the various customer classes from which a franchise fee would be collected if a separate ordinance were implemented immediately after the effective date of this franchise agreement. The Fee Schedule in the separate ordinance may include new Customer Class added by Company to its gas tariffs after the effective date of this franchise agreement. 9.3.3 “Gross Revenues” means all sums, excluding any surcharge or similar addition to the Company’s charges to customers for the purpose of reimbursing the Company for the cost resulting from the franchise fee, received by the Company from the sale of gas to its retail customers within the corporate limits of the City. City Council Meeting of October 1, 2012 (Item No. 6b) Page 9 Subject: Public Hearing & 1st Reading of Ordinance Granting a Natural Gas Utility Franchise to CPE 9.4 Collection of the Fee. The franchise fee shall be payable quarterly and shall be based on the amount collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for gas service in each class. The payment shall be due the last business day of the month following the period for which the payment is made. The franchise fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements and not occur more often than annually and no change shall require a collection from any customer for gas service in excess of the amounts specifically permitted by this Section 9. The time and manner of collecting the franchise fee is subject to the approval of the Commission. No franchise fee shall be payable by Company if Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Company’s applicable rates for gas service. Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings. Company agrees to make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers. In addition, the Company agrees to provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for any uncollectibles, refunds or error corrections. 9.5 Equivalent Fee Requirement. The separate ordinance imposing the fee shall not be effective against Company unless it lawfully imposes and the City monthly or more often collects a fee or tax of the same or greater equivalent amount on the receipts from sales of energy within the City by any other energy supplier, provided that, as to such a supplier, the City has the authority to require a franchise fee or to impose a tax. The “same or greater equivalent amount” shall be measured, if practicable, by comparing amounts collected as a franchise fee from each similar customer, or by comparing, as to similar customers the percentage of the annual bill represented by the amount collected for franchise fee purposes. The franchise fee or tax shall be applicable to energy sales for any energy use related to heating, cooling or lighting, or to run machinery and appliances, but shall not apply to energy sales for the purpose of providing fuel for vehicles. If the Company specifically consents in writing to a franchise or separate ordinance collecting or failing to collect a fee from another energy supplier in contravention of this Section 9.5, the foregoing conditions will be waived to the extent of such written consent. SECTION 10. PROVISIONS OF ORDINANCE. 10.1 Severability. Every section, provision, or part of this Ordinance is declared separate from every other section, provision, or part and if any section, provision, or part shall be held invalid, it shall not affect any other section, provision, or part. Where a provision of any other City ordinance conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail. 10.2 Limitation on Applicability. This Ordinance constitutes a franchise granted to the Company and no provision of this franchise shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of the Ordinance or of any one or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto. City Council Meeting of October 1, 2012 (Item No. 6b) Page 10 Subject: Public Hearing & 1st Reading of Ordinance Granting a Natural Gas Utility Franchise to CPE SECTION 11. PREVIOUS FRANCHISES SUPERSEDED. This franchise supersedes any previous gas franchise granted to Company or its predecessor. SECTION 12. This Ordinance shall take effect fifteen days after its passage and publication. ADOPTED this ______ day of _______________, 2012, by the City Council of the City of St. Louis Park. Reviewed for Administration Adopted by the City Council City Manager Mayor Attest: Approved as to Form and Execution: City Clerk City Attorney Date Published:____________________ Meeting Date: October 1, 2012 Agenda Item #: 6c Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Public Hearing and First Reading of Ordinance Imposing a Franchise Fee on CenterPoint Energy Resources Corp. RECOMMENDED ACTION: Mayor to close public hearing. Motion to approve first reading of an ordinance imposing a franchise fee on CenterPoint Energy Resources Corp. and set second reading for October 15, 2012. POLICY CONSIDERATIONS: Does the City Council wish to increase the franchise fees for CenterPoint Energy to assist in funding the City’s Pavement Management Program? BACKGROUND: History In early 2003 the City adopted an ordinance granting CenterPoint Energy (CPE) a natural gas utility franchise in the city; that ordinance allowed the City to impose a franchise fee on CPE. The City Council acted to impose a franchise fee of $1.25/month for a residential customer on CPE which went into effect in January of 2004. These franchise fees were increased by Council $0.75/month per utility for a residential customer in 2010. This increase took effect on February 1, 2011, which changed the fee to $2.00/month per utility for a residential customer. Franchise fees in St. Louis Park are used in their entirety to assist in funding the cost the City experiences to maintain, reconstruct and repair the street system via the City’s Pavement Management Program. Special assessments to property owners have never been used to help fund this program and, starting in 2013, property tax dollars will not be used either. The franchise fee is essentially a user fee collected from customers on their utility bill and paid to CPE. The utility then functions essentially as a pass through entity with the franchise fee revenue being remitted to the City of St. Louis Park. Given funding deficits projected for the City’s Pavement Management Fund over the next ten years, in 2009 the City Council reviewed and determined the City would need to increase franchise fees from time to time to ensure the Pavement Management Program could be continued and fully funded. This increase is a part of that plan. Proposed Fee Increase As discussed with the Council previously, staff is proposing a $0.50/month fee increase to residential customers for 2013 to continue funding the Pavement Management Program. Based on customer class, customers would see increases ranging from $0.50/month per utility for residential customers to $4.00/month per utility for large commercial/industrial customers (please see attachment - Franchise Fee Estimate). Residential customers make up approximately 90% of the total customers. It was desired by the City to adopt an ordinance that would allow for automatic annual or alternating year fee increases, but that is not allowed by the Public Utilities Commission. City Council Meeting of October 1, 2012 (Item No. 6c) Page 2 Subject: Public Hearing & 1st Reading of Ordinance Imposing a Franchise Fee on CPE The City also imposes an equivalent franchise fee on Xcel Energy. Staff is also proposing (under separate action) to increase Xcel’s current basic Franchise Fee by $0.50/month per utility for residential customers. Per the City’s Long Range Financial Management Plan, by increasing franchise fees in 2013 and again in 2015, it is projected that the Pavement Management Program could be funded entirely by franchise fees making the fund sustainable in the long-term. Based on recent discussions with CPE staff, they do not oppose this proposed increase in the franchise fee. Adoption Process and Schedule The following steps outline the adoption process to be followed: 1. Ordinances must contain all the terms and conditions of the franchise 2. Franchise ordinances require a public hearing 3. Hearing notice must be published at least once in the City's official newspaper at least twenty (20) days prior to the public hearing. 4. At least seven days must pass between first reading (public hearing) and 2nd reading 5. At second reading motion will be “Motion to adopt the ordinance, approve the summary and authorize summary publication” 6. Ordinance becomes effective 15 days following summary publication Based on the above process, staff has developed the following steps and schedule for adopting the franchise ordinance and franchise fee ordinance: Study Session - Written Report July 23, 2012 Study Session - Discussion Aug 13, 2012 Submit Public Hearing Notice to Sun Sailor Aug 30, 2012 Public Hearing Notice Published Sept 6, 2012 First Reading and Public Hearing Oct 1, 2012 Second Reading (adopt franchise and fee ordinances, approve summary, and authorize summary publication) Oct 15, 2012 Submit Summary to Sun Sailor Oct 18, 2012 Summary Publication Oct 25, 2012 Franchise Ordinance Effective Date Nov 9, 2012 Franchise Fee Ordinance Effective Date (90 day PUC submission period) Jan 23, 2013 Summary and Recommendations City staff has not identified any issues associated with adoption of this franchise fee ordinance which imposes an increased franchise fee on CPE. Staff is proposing, and CPE supports, that their franchise fee is consistent with the franchise fee we impose on Xcel Energy. The current CPE franchise ordinance expires June 30, 2013. For a variety of reasons, staff is proposing to adopt the new CPE Franchise Ordinance and Franchise Fee increase utilizing the same process, steps, and schedule as that proposed for Xcel. Per the schedule above, the planned effective date of this new Franchise would be January 23, 2013. City Council Meeting of October 1, 2012 (Item No. 6c) Page 3 Subject: Public Hearing & 1st Reading of Ordinance Imposing a Franchise Fee on CPE Staff recommends Council approve 1st Reading and set 2nd reading for October 15th as per the schedule outlined above. FINANCIAL OR BUDGET CONSIDERATIONS: The city’s Pavement Management Program is currently funded by franchise fee revenues, collected for us by both Xcel and CPE. Franchise fees can be collected by a utility when the city has a franchise ordinance providing for this. Thus, failure to grant CPE a utility franchise would result in the loss of franchise fee revenues for our Pavement Management Program. Based on the current fees, total franchise fees generate approximately $1.35 million annually (CPE - $510,654; Xcel - $843,445). The proposed increase in the CPE franchise fee would add approximately $105,000 in additional annual revenue to the Pavement Management Program, and provide greater sustainability into the future. By implementing this proposed franchise fee increase for 2013, St. Louis Park would still be competitive with other cities in the area. VISION CONSIDERATION: Not applicable. Attachments: Franchise Fee Estimate Franchise Fee Ordinance Prepared by: Michael P. Rardin, Public Works Director Steve Heintz, Finance Supervisor Reviewed by: Tom Scott, City Attorney Approved by: Tom Harmening, City Manager City Council Meeting of October 1, 2012 (Item No. 6c) Page 4 Subject: Public Hearing & 1st Reading of Ordinance Imposing a Franchise Fee on CPE City of St Louis Park, Minnesota Franchise Fee Estimate Variable Increases Proposed for 2013 Beginning in 2013 and Every Other Year After an Increase of $0.50 For All Non Large C/I, With Large C/I Increase of $4.00. Xcel - Electric CUSTOMER CLASS AVERAGE MONTHLY CUSTOMER COUNT ESTIMATED ANNUAL FRANCHISE FEE REVENUES 2013 New Revenue Estimate MONTHLY FLAT FEE 2013 New Fee Proposal Residential* 22,242 $533,808 $667,260 $2.00 $2.50 Small C&I – Non-Demand* 1,350 $64,800 $72,900 $4.00 $4.50 Small C&I – Demand 699 $111,141 $115,335 $13.25 $13.75 Large C&I 149 $130,524 $137,676 $73.00 $77.00 Public Street Lighting 75 $0 Municipal Pumping – Non-Demand 21 $1,012 $1,139 $4.00 $4.50 Municipal Pumping – Demand 18 $2,160 $2,268 $10.00 $10.50 Total 24,554 $843,445 $996,578 Net Increase $153,133 CenterPoint - Heating Gas CUSTOMER CLASS AVERAGE MONTHLY CUSTOMER COUNT ESTIMATED ANNUAL FRANCHISE FEE REVENUES 2013 New Revenue Estimate MONTHLY FLAT FEE New Fee Proposal Residential 16,382 $393,168 $491,460 $2.00 $2.50 Commercial A 0 $0 $0 $2.00 $2.50 Commercial B 407 $19,536 $21,978 $4.00 $4.50 Commercial C 519 $82,521 $85,635 $13.25 $13.75 SVDF A & B 75 $11,925 $12,375 $13.25 $13.75 LVDF 4 $3,504 $3,696 $73.00 $77.00 Total 17,387 $510,654 $615,144 Net Increase $104,490 Total $257,623 City Council Meeting of October 1, 2012 (Item No. 6c) Page 5 Subject: Public Hearing & 1st Reading of Ordinance Imposing a Franchise Fee on CPE CenterPoint Energy Gas Franchise Fee Ordinance ORDINANCE NO. ____-12 CITY OF ST. LOUIS PARK, HENNEPIN COUNTY, MINNESOTA AN ORDINANCE IMPLEMENTING A GAS ENERGY FRANCHISE FEE ON CENTERPOINT ENERGY MINNESOTA GAS (“CENTERPOINT ENERGY”) FOR PROVIDING GAS ENERGY SERVICE WITHIN THE CITY OF ST. LOUIS PARK, MINNESOTA. THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK, HENNEPIN COUNTY, MINNESOTA, ORDAINS: SECTION 1. DEFINITIONS. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: 1.1 City. The City of St. Louis Park, County of Hennepin, State of Minnesota. 1.2 Company. CenterPoint Energy Minnesota Gas (“CenterPoint Energy”), its successors and assigns. 1.3 Franchise Ordinance. The franchise ordinance adopted by the City - City Ordinance __________. 1.4 Notice. “Notice” means a writing served by any party or parties on any other party or parties. Notice to Company shall be mailed to CenterPoint Energy, Minnesota Division Vice President, 800 LaSalle Avenue, Minneapolis, MN 55402. Notice to City shall be mailed to the City Manager, City of St. Louis Park, 5005 Minnetonka Boulevard, St. Louis Park, MN 55416. SECTION 2. GAS FRANCHISE FEE. 2.1 Purpose. The St. Louis Park City Council has determined that it is in the best interest of the City to impose a franchise fee on those public utility companies that provide natural gas and electric services within the City. Pursuant to the Franchise Ordinance, the City has the right to impose a franchise fee on Company. City Council Meeting of October 1, 2012 (Item No. 6c) Page 6 Subject: Public Hearing & 1st Reading of Ordinance Imposing a Franchise Fee on CPE 2.2 Franchise Fee Statement and Schedule. A franchise fee is hereby imposed on Company commencing with the March 2013 billing month, and in accordance with the following fee schedule: Customer Classification Amount per Account per Month ($) Residential $2.50 per month Firm A $2.50 per month Firm B $4.50 per month Firm C $13.75 per month Small Volume, Dual Fuel A (“SVDF A”) $13.75 per month Small Volume, Dual Fuel B (“SVDF B”) $13.75 per month Large Volume, Dual Fuel (“LVDF”) $77.00 per month 2.3 Account Fee. This fee is an account based fee and not a meter-based fee. In the event that an entity covered by this ordinance has more than one meter, but only one account, only one fee shall be assessed to that account. In the event any entities covered by this ordinance have more than one account, each account shall be subject to the appropriate fee. In the event a question arises as to the proper fee amount for any account, the highest possible fee amount shall apply. 2.4 Payment. Franchise fees are to be collected by the Company and submitted to the City as follows: January – March collections due by April 30. April – June collections due by July 31. July – September collections due by October 31. October – December collections due by January 31. 2.5 Record Support for Payment. The Company shall make each payment when due and, if requested by the City, shall provide a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total made to account for any non-collectible accounts, refunds or error corrections. The Company shall permit the City, and its representatives, access to the Company’s records for the purpose of verifying such statements. 2.6 Paym ent Adjustments. Payment to the City will be adjusted where the Company is unable to collect the franchise fee. This includes non-collectible accounts. 2.7 Surcharge. The City recognizes that the Minnesota Public Utilities Commission may allow the Company to add a surcharge to customer rates to reimburse the Company for the cost of the fee. 2.8 Relation to Franchise Ordinance. This ordinance is enacted in compliance with the Franchise Ordinance and shall be interpreted as such. 2.9 Periodic Review. The City Council shall review this ordinance every two years in whatever manner the City Manager then determines to be appropriate. Failure to review this ordinance shall not in any way invalidate or limit it. City Council Meeting of October 1, 2012 (Item No. 6c) Page 7 Subject: Public Hearing & 1st Reading of Ordinance Imposing a Franchise Fee on CPE SECTION 3. PREVIOUS FRANCHISE FEE ORDINANCE SUPERSEDED. This Gas Franchise Fee Ordinance supersedes Ordinance No. 2395-10. SECTION 4: EFFECTIVE DATE. This ordinance shall take effect ninety (90) days after its passage and publication. ADOPTED this _____ day of __________, 2012, by the City Council of the City of St. Louis Park. Reviewed for Administration Adopted by the City Council October 15, 2012 City Manager Mayor Attest: Approved as to Form and Execution: City Clerk City Attorney Date Published:____________________ Meeting Date: October 1, 2012 Agenda Item #: 6d Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Public Hearing and First Reading of an Ordinance Granting an Electrical Energy Utility Franchise to Northern States Power Company (Xcel Energy) RECOMMENDED ACTION: Mayor to close public hearing. Motion to approve first reading of an Ordinance granting Northern States Power Company a non-exclusive electrical energy utility franchise and set Second Reading for October 15, 2012. POLICY CONSIDERATIONS: Does Council: 1. Wish to grant Northern States Power Company an electrical energy utility franchise? 2. Have concerns with any of the terms in the franchise? BACKGROUND: History In 1993, the City granted a utility franchise to Northern States Power Company (D/B/A Xcel Energy) which is due to expire February 20, 2013. Xcel and city staff began discussing renewal of this franchise earlier this year at which time possible issues or concerns were discussed. During February Xcel provided us a proposed ordinance for consideration. Since then city staff along with City Attorney Tom Scott have been actively involved in various discussions with Xcel reps and in reviewing and revising the proposed ordinance. This topic was presented to the City Council at the July 23rd Study Session and was followed up with a staff / Council discussion at the August 13th Study Session. As a result, staff has been attempting to draft an ordinance to address the following concerns: 1. Permit violations by Xcel : a. occasional lack of notice prior to starting work b. occasionally performs work without permits c. occasionally does not remove abandoned infrastructure d. blocks or takes City infrastructure out of service without approval or mitigation e. extensive time taken to perform permit work and restore City infrastructure 2. Utility relocation difficulties experienced by the city (very poor timeliness, participation, and relocation performance by Xcel associated with public improvement projects - i.e., poor past relocation performance) a. lack of participation in coordination / planning meetings b. slow effort or refusal to relocate their facilities on city infrastructure projects 3. Difficulty in obtaining an Xcel infrastructure map or GIS info for internal planning and emergency response purposes 4. Need to assess permit fees to Xcel like all others working in city right of way 5. Ordinance term of 20 years is too long City Council Meeting of October 1, 2012 (Item No. 6d) Page 2 Subject: Public Hearing & 1st Reading of Ordinance Granting an Electrical Energy Utility Franchise to NSP Staff has been working with Xcel staff to revise their proposed ordinance to address the above issues, to make it generally consistent with the CenterPoint Energy utility franchise ordinance, and also to increase the current basic Franchise Fee by $0.50/month. To date Xcel has opposed substantially all of the City’s proposed revisions to their proposed ordinance; however, they are agreeable to the proposed $0.50/month increase in the Franchise Fee. Because staff has been unable to reach agreement with Xcel on most franchise terms, staff is proposing the City grant an electric utility franchise to Xcel by “ordinance” rather than by “agreement” as has been done in the past. Based on previously identified concerns and discussions with Xcel representatives, the attached ordinance was developed by City staff utilizing Xcel’s proposed ordinance subject to the following substantive changes: 1. Ordinance term shortened from 20 to 10 years 2. Subjects Xcel to city administrative regulations / requirements 3. Requires Xcel to provide city mapping information of its facilities 4. Requires prompt facility relocations by Xcel when necessary 5. Subjects Xcel to city permit fees when permits are required 6. Adoption of ordinance without Xcel consent requirement Adoption Process and Schedule The following steps outline the adoption process to be followed: 1. Ordinances must contain all the terms and conditions of the franchise 2. Franchise ordinances require a public hearing 3. Hearing notice must be published at least once in the City's official newspaper at least twenty (20) days prior to the public hearing. 4. At least seven days must pass between first reading (public hearing) and 2nd reading 5. At second reading motion will be “Motion to adopt the ordinance, approve the summary and authorize summary publication” 6. Ordinance becomes effective 15 days following summary publication Based on the above process, staff has developed the following steps and schedule for adopting the franchise ordinance and franchise fee ordinance: Study Session - Written Report July 23, 2012 Study Session - Discussion Aug 13, 2012 Submit Public Hearing Notice to Sun Sailor Aug 30, 2012 Public Hearing Notice Published Sept 6, 2012 First Reading and Public Hearing Oct 1, 2012 Second Reading (adopt franchise and fee ordinances, approve summary, and authorize summary publication) Oct 15, 2012 Submit Summary to Sun Sailor Oct 18, 2012 Summary Publication Oct 25, 2012 Franchise Ordinance Effective Date Nov 9, 2012 Franchise Fee Ordinance Effective Date (90 day PUC submission period) Jan 23, 2013 City Council Meeting of October 1, 2012 (Item No. 6d) Page 3 Subject: Public Hearing & 1st Reading of Ordinance Granting an Electrical Energy Utility Franchise to NSP Summary and Next Steps Staff expects Xcel to remain opposed to the staff proposed ordinance. The City Attorney’s opinion is that Xcel’s consent to the Ordinance is not required. Xcel’s legal counsel disagrees and has stated to this point that Xcel will reject any ordinance adopted without its consent. This is a significant issue which can impact the ability of the city to impose a franchise fee which requires further discussion. Staff recommends that Council approve 1st Reading and set 2nd reading for October 15th as per the schedule outlined above. Staff further recommends that this matter be placed on the October 8 study session agenda for further discussion with staff and the City Attorney prior to 2nd reading. The current Franchise is effective through February 20, 2013. Per the schedule above, the planned effective date of the new Franchise would be January 23, 2013. FINANCIAL OR BUDGET CONSIDERATIONS: The city’s pavement management program is currently funded by franchise fee revenues, collected for us by both Xcel and CPE, along with some general funds. Franchise fees can be collected by a utility when the city has a franchise ordinance providing for this. Thus, failure to grant NSP (Xcel) a utility franchise would result in the loss of franchise fee revenues for our pavement management program. Based on the current fees, total franchise fees generate approximately $1.35 million annually (CPE - $510,654; Xcel - $843,445) which are used to fund the Pavement Management Program. The proposed increase in the Xcel franchise fee would add approximately $153,000 in additional annual revenue to the Pavement Management Program. VISION CONSIDERATION: Not applicable. Attachments: Franchise Ordinance Prepared by: Michael P. Rardin, Public Works Director Tom Scott, City Attorney Reviewed by: Steve Heintz, Finance Supervisor Approved by: Tom Harmening, City Manager City Council Meeting of October 1, 2012 (Item No. 6d) Page 4 Subject: Public Hearing & 1st Reading of Ordinance Granting an Electrical Energy Utility Franchise to NSP ELECTRIC FRANCHISE ORDINANCE ORDINANCE NO. ____-12 CITY OF ST. LOUIS PARK, HENNEPIN COUNTY, MINNESOTA AN ORDINANCE GRANTING TO NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, D/B/A XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN IN THE CITY OF ST. LOUIS PARK, MINNESOTA, AN ELECTRIC DISTRIBUTION SYSTEM AND TRANSMISSION LINES, INCLUDING NECESSARY POLES, LINES, FIXTURES AND APPURTENANCES, FOR THE FURNISHING OF ELECTRIC ENERGY TO THE CITY, ITS INHABITANTS, AND OTHERS, AND TO USE THE PUBLIC GROUNDS AND PUBLIC WAYS OF THE CITY FOR SUCH PURPOSES. THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK, HENNEPIN COUNTY, MINNESOTA, ORDAINS: SECTION 1. DEFINITIONS. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: 1.1 City. The City of St. Louis Park, County of Hennepin, State of Minnesota. 1.2 City Utility System. Facilities used for providing non-energy related public utility service owned or operated by City or agency thereof, including sewer and water service, but excluding facilities for providing heating, lighting or other forms of energy. 1.3 Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government, which preempts all, or part of the authority to regulate electric retail rates now vested in the Minnesota Public Utilities Commission. 1.4 Company. Northern States Power Company, a Minnesota corporation, d/b/a Xcel Energy, its successors and assigns. 1.5 Electric Facilities. Electric transmission and distribution towers, poles, lines, guys, anchors, conduits, fixtures, and necessary appurtenances owned or operated by Company for the purpose of providing electric energy for public use. 1.6 Notice. A written notice served by one party on the other party referencing one or more provisions of this Ordinance. Notice to Company shall be mailed to the General Counsel, 414 Nicollet Mall, 5th Floor, Minneapolis, MN 55401. Notice to the City shall be mailed to the City Administrator, City Hall, 5005 Minnetonka Blvd., St. Louis Park, MN 55416. Either party may change its respective address for the purpose of this Ordinance by written notice to the other party. City Council Meeting of October 1, 2012 (Item No. 6d) Page 5 Subject: Public Hearing & 1st Reading of Ordinance Granting an Electrical Energy Utility Franchise to NSP 1.7 Public Ground. Land owned by the City for park, open space or similar purpose, which is held for use in common by the public. 1.8 Public Way. Any street, alley, walkway or other public right-of-way within the City and under the jurisdiction of the City. SECTION 2. ADOPTION OF FRANCHISE. 2.1 Grant of Franchise. City hereby grants Company, for a period of 10 (ten) years from the effective date of this Ordinance, the right to transmit and furnish electric energy for light, heat, power and other purposes for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future. For these purposes, Company may construct, operate, repair and maintain Electric Facilities in, on, over, under and across the Public Grounds and Public Ways of City, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject, however, to such reasonable regulations as may be imposed by the City pursuant to ordinance or administratively as part of the permit process. 2.2 Service and Rates. The service to be provided and the rates to be charged by Company for electric service in City are subject to the jurisdiction of the Commission. The area within the City in which Company may provide electric service is subject to the provisions of Minnesota Statutes, Section 216B.40. 2.3 Continuation of Franchise. Upon expiration of the ten (10) year franchise term, this Ordinance will remain in effect until a new franchise ordinance is adopted, or until ninety (90) days after the City serves written Notice on the Company of its intention to allow this Ordinance to expire, but in no event shall this Ordinance continue for more than one year after expiration of the 10-year term set forth in Section 2.1. SECTION 3. LOCATION, OTHER REGULATIONS. 3.1 Location of Facilities. Electric Facilities shall be located, constructed and maintained so as not to interfere with the safety and convenience of ordinary travel along and over Public Ways and so as not to disrupt normal operation of any City Utility System previously installed therein. Electric Facilities shall be located on Public Grounds as determined by the City. Company's construction, reconstruction, operation, repair, maintenance and location of Electric Facilities shall be subject to permits if required by separate ordinance and to other reasonable regulations of the City to the extent not inconsistent with the terms of this franchise ordinance. Company may abandon underground Electric Facilities in place, provided at the City’s request, Company will remove abandoned metal or concrete encased conduit interfering with a City improvement project, but only to the extent such conduit is uncovered by excavation as part of the City improvement project. The Company shall maintain records describing the exact location of all abandoned and retired Electric Facilities within the Public Ways and Public Grounds, produce such records at the City’s request and comply with the location requirements of Section 216D.04 with respect to all Electric Facilities, including abandoned and retired Electric Facilities not located in Public Ways and Public Grounds. City Council Meeting of October 1, 2012 (Item No. 6d) Page 6 Subject: Public Hearing & 1st Reading of Ordinance Granting an Electrical Energy Utility Franchise to NSP 3.2 Field Locations. Company shall provide field locations for its underground Electric Facilities within City consistent with the requirements of Minnesota Statutes, Chapter 216D. 3.3 Mapping Information. If requested by City, the Company must promptly provide complete and accurate mapping information for any of its Electric Facilities in accordance with the requirements of Minnesota Rules 7819.4000 and 7819.4100. 3.4 Street Openings. Company shall not open or disturb any Public Ground or Public Way for any purpose without first having obtained a permit from the City, if required by a separate ordinance or administratively, for which the City may impose a reasonable fee. Permit conditions imposed on Company shall not be more burdensome than those imposed on other utilities for similar facilities or work. Company may, however, open and disturb any Public Ground or Public Way without permission from the City where an emergency exists requiring the immediate repair of Electric Facilities. In such event Company shall notify the City by telephone to the office designated by the City as soon as practicable. Not later than the second working day thereafter, Company shall obtain any required permits and pay any required fees. 3.5 Restoration. After undertaking any work requiring the opening of any Public Ground or Public Way, Company shall restore the same, including paving and its foundation, to as good a condition as formerly existed, and shall maintain any paved surface in good condition for two years thereafter. The work shall be completed as promptly as weather permits, and if Company shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and material, and put the Public Ground or Public Way in the said condition, the City shall have, after demand to Company to cure and the passage of a reasonable period of time following the demand, but not to exceed five days, the right to make the restoration at the expense of Company. Company shall pay to the City the cost of such work done for or performed by the City. This remedy shall be in addition to any other remedy available to the City for noncompliance with this Section 3.5. 3.6 Avoid Damage to Electric Facilities. Nothing in this Ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Electric Facilities while performing any activity. 3.7 Notice of Improvements. The City must give Company reasonable notice of plans for improvements to Public Grounds or Public Ways where the City has reason to believe that Electric Facilities may affect or be affected by the improvement. The notice must contain: (i) the nature and character of the improvements, (ii) the Public Grounds and Public Ways upon which the improvements are to be made, (iii) the extent of the improvements, (iv) the time when the City will start the work, and (v) if more than one Public Ground or Public Way is involved, the order in which the work is to proceed. The notice must be given to Company a sufficient length of time in advance of the actual commencement of the work to permit Company to make any necessary additions, alterations or repairs to its Electric Facilities. 3.8 Shared Use of Poles. Company shall make space available on its poles or towers for City fire, water utility, police or other City facilities upon terms and conditions acceptable to Company whenever such use will not interfere with the use of such poles or towers by Company, by another electric utility, by a telephone utility, or by any cable television company or other form of communication company. In addition, the City shall pay for any added cost incurred by Company because of such use by City. City Council Meeting of October 1, 2012 (Item No. 6d) Page 7 Subject: Public Hearing & 1st Reading of Ordinance Granting an Electrical Energy Utility Franchise to NSP SECTION 4. RELOCATIONS. 4.1 Relocation of Electric Facilities in Public Ways. Company shall promptly and at its own expense, with due regard for seasonal working conditions, permanently remove and relocate its facilities in any public way when it is necessary to prevent interference, and not merely for convenience of the local government unit, in connection with: (1) a present or future local government use of the right-of-way for a public project; (2) the public health or safety; or (3) the safety and convenience of travel over the right-of-way. 4.2 Relocation of Electric Facilities in Public Ground. City may require Company, at Company’s expense, to relocate or remove its Electric Facilities from Public Ground upon a finding by City that the Electric Facilities have become or will become a substantial impairment to the existing or proposed public use of the Public Ground. 4.3 Projects with Federal Funding. Relocation or removal, or rearrangement of any Company Electrical Facilities made necessary because of the extension into or through City of a federally aided highway project shall be governed by the provisions of Minnesota Statutes Section 161.45 and 161.46. 4.4 No Waiver. The provisions of this franchise apply only to facilities constructed in reliance on a franchise from the City and shall not be construed to waive or modify any rights obtained by Company for installations within a Company right-of-way acquired by easement or prescriptive right before the applicable Public Ground or Public Way was established, or Company's rights under state or county permit. SECTION 5. TREE TRIMMING. Company may trim all trees and shrubs in the Public Grounds and Public Ways of City to the extent Company finds necessary to avoid interference with the proper construction, operation, repair and maintenance of any Electric Facilities installed hereunder, provided that Company shall save the City harmless from any liability arising therefrom, and subject to permit or other reasonable regulation by the City. SECTION 6. INDEMNIFICATION. 6.1 Indemnity of City. Company shall indemnify, keep and hold the City free and harmless from any and all liability on account of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection, the issuance of permits, or the operation of the Electric Facilities located in the Public Grounds and Public Ways. The City shall not be indemnified for losses or claims occasioned through its own negligence except for losses or claims arising out of or alleging the City's negligence as to the issuance of permits for, or inspection of, Company's plans or work. The City shall not be indemnified if the injury or damage results from the performance in a proper manner, of acts reasonably deemed hazardous by Company, and such performance is nevertheless ordered or directed by City after notice of Company's determination. 6.2 Defense of City. In the event a suit is brought against the City under circumstances where this agreement to indemnify applies, Company at its sole cost and expense shall defend the City in such suit if written notice thereof is promptly given to Company within a period wherein City Council Meeting of October 1, 2012 (Item No. 6d) Page 8 Subject: Public Hearing & 1st Reading of Ordinance Granting an Electrical Energy Utility Franchise to NSP Company is not prejudiced by lack of such notice. If Company is required to indemnify and defend, it will thereafter have control of such litigation, but Company may not settle such litigation without the consent of the City, which consent shall not be unreasonably withheld. This section is not, as to third parties, a waiver of any defense or immunity (including liability limits pursuant to Minn. Stat. Chapter 466) otherwise available to the City and Company, in defending any action on behalf of the City, shall be entitled to assert in any action every defense or immunity that the City could assert in its own behalf. SECTION 7. VACATION OF PUBLIC WAYS. The City shall give Company at least two weeks prior written notice of a proposed vacation of a Public Way. Except where required for a City improvement project, the vacation of any Public Way, after the installation of Electric Facilities, shall not operate to deprive Company of its rights to operate and maintain such Electric Facilities, until the reasonable cost of relocating the same and the loss and expense resulting from such relocation are first paid to Company. In no case, however, shall City be liable to Company for failure to specifically preserve a right-of-way under Minnesota Statutes, Section 160.29. SECTION 8. CHANGE IN FORM OF GOVERNMENT. Any change in the form of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance. SECTION 9. FRANCHISE FEE. 9.1 Fee Schedule. During the term of the franchise hereby granted, the City may impose on Company a franchise fee not to exceed five percent (5%) of the Company’s Gross Revenues, as hereinafter defined, by collecting the amounts calculated on a flat fee/per month basis as indicated in a Fee Schedule set forth in a separate ordinance from each customer in the designated Company Customer Class. 9.2 Separate Ordinance. The franchise fee shall be imposed by a separate ordinance duly adopted by the City Council, which ordinance shall not be adopted until at least 90 days after written notice enclosing such proposed ordinance has been served upon Company by certified mail. The fee shall not become effective until the beginning of a Company billing month at least 90 days after written notice enclosing such adopted ordinance has been served upon Company by certified mail. No action by the City to implement a separate ordinance will commence until this Ordinance is effective. A separate ordinance which imposes a lesser franchise fee on the residential class of customers than the maximum amount set forth in Section 9.1 above shall not be effective against Company unless the fee imposed on each other customer classification is reduced proportionately in the same or greater amount per class as the reduction represented by the lesser fee on the residential class. 9.3 Terms Defined. For the purpose of this Section 9, the following definitions apply: 9.3.1 “Customer Class” shall refer to the classes listed on the Fee Schedule and as defined or determined in Company’s electric tariffs on file with the Commission. City Council Meeting of October 1, 2012 (Item No. 6d) Page 9 Subject: Public Hearing & 1st Reading of Ordinance Granting an Electrical Energy Utility Franchise to NSP 9.3.2 “Fee Schedule” refers to the schedule in Section 9.1 setting forth the various customer classes from which a franchise fee would be collected if a separate ordinance were implemented immediately after the effective date of this franchise agreement. The Fee Schedule in the separate ordinance may include new Customer Class added by Company to its electric tariffs after the effective date of this franchise agreement. 9.3.3 “Gross Revenues” means all sums, excluding any surcharge or similar addition to the Company’s charges to customers for the purpose of reimbursing the Company for the cost resulting from the franchise fee, received by the Company from the sale of electricity to its retail customers within the corporate limits of the City. 9.4 Collection of the Fee. The franchise fee shall be payable quarterly and shall be based on the amount collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class. The payment shall be due the last business day of the month following the period for which the payment is made. The franchise fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements and not occur more often than annually and no change shall require a collection from any customer for electric service in excess of the amounts specifically permitted by this Section 9. The time and manner of collecting the franchise fee is subject to the approval of the Commission. No franchise fee shall be payable by Company if Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Company’s applicable rates for electric service. Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for un-collectibles, refunds and correction of erroneous billings. Company agrees to make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers. In addition, the Company agrees to provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for any un-collectibles, refunds or error corrections. 9.5 Equivalent Fee Requirement. The separate ordinance imposing the fee shall not be effective against Company unless it lawfully imposes and the City monthly or more often collects a fee or tax of the same or greater equivalent amount on the receipts from sales of energy within the City by any other energy supplier, provided that, as to such a supplier, the City has the authority to require a franchise fee or to impose a tax. The “same or greater equivalent amount” shall be measured, if practicable, by comparing amounts collected as a franchise fee from each similar customer, or by comparing, as to similar customers the percentage of the annual bill represented by the amount collected for franchise fee purposes. The franchise fee or tax shall be applicable to energy sales for any energy use related to heating, cooling or lighting, or to run machinery and appliances, but shall not apply to energy sales for the purpose of providing fuel for vehicles. If the Company specifically consents in writing to a franchise or separate ordinance collecting or failing to collect a fee from another energy supplier in contravention of this Section 9.5, the foregoing conditions will be waived to the extent of such written consent. City Council Meeting of October 1, 2012 (Item No. 6d) Page 10 Subject: Public Hearing & 1st Reading of Ordinance Granting an Electrical Energy Utility Franchise to NSP SECTION 10. PROVISIONS OF ORDINANCE. 10.1 Severability. Every section, provision, or part of this Ordinance is declared separate from every other section, provision, or part and if any section, provision, or part shall be held invalid, it shall not affect any other section, provision, or part. Where a provision of any other City ordinance conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail. 10.2 Limitation on Applicability. This Ordinance constitutes a franchise granted to the Company and no provision of this franchise shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of the Ordinance or of any one or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto. SECTION 11. PREVIOUS FRANCHISES SUPERSEDED. This franchise supersedes any previous electric franchise granted to Company or its predecessor. SECTION 12. This Ordinance shall take effect fifteen days after its passage and publication. ADOPTED this ______ day of _______________, 2012, by the City Council of the City of St. Louis Park. Reviewed for Administration Adopted by the City Council October 15, 2012 City Manager Mayor Attest: Approved as to Form and Execution: City Clerk City Attorney Date Published:____________________ Meeting Date: October 1, 2012 Agenda Item #: 6e Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Public Hearing and First Reading of an Ordinance Imposing a Franchise Fee on Northern States Power Company (D/B/A Xcel Energy) RECOMMENDED ACTION: Mayor to close public hearing. Motion to approve first reading of an Ordinance imposing a franchise fee on Northern States Power Company and set Second Reading for October 15, 2012. POLICY CONSIDERATIONS: Does the City Council wish to increase the franchise fees for Northern States Power Company to assist in funding the City’s Pavement Management Program? BACKGROUND: History In 1993 the City adopted an ordinance granting Northern States Power Company (D/B/A Xcel Energy) an electrical services utility franchise in the city; that ordinance allowed the City to impose a franchise fee on Xcel. The City Council acted to impose a franchise fee on Xcel of $1.25/month for a residential customer which went into effect in January of 2004. These franchise fees were increased by Council $0.75/month per utility for a residential customer in 2010. This increase took effect on February 1, 2011, which changed the fee to $2.00/month per utility for a residential customer. Franchise fees in St. Louis Park are used in their entirety to assist in funding the cost the City experiences to maintain, reconstruct and repair the street system via the City’s Pavement Management Program. Special assessments to property owners have never been used to fund this program and, starting in 2013, property tax dollars will not be used either. The franchise fee is essentially a user fee collected from customers on their utility bill and paid to Xcel. The utility then functions essentially as a pass through entity with the franchise fee revenue being remitted to the City of St. Louis Park. Given funding deficits projected for the City’s Pavement Management Fund over the next ten years, in 2009 the City Council reviewed and determined the City would need to increase franchise fees from time to time to ensure the Pavement Management Program could be continued and fully funded. This increase is a part of that plan. Proposed Fee Increase As discussed with the Council previously, Staff is proposing a $0.50/month fee increase to residential customers for 2013 to insure adequate funding for the Pavement Management Program. Based on customer class, customers would see increases ranging from $0.50/month per utility for residential customers to $4.00/month per utility for large commercial/industrial customers (please see attachment - Franchise Fee Estimate). Residential customers make up approximately 90% of the total customers. It was desired by the City to adopt an ordinance that would allow for automatic annual or alternating year fee increases, but that is not allowed by the Public Utilities Commission. City Council Meeting of October 1, 2012 (Item No. 6e) Page 2 Subject: Public Hearing 1st Reading of Ordinance Imposing Franchise Fee on NSP (D/B/A Xcel Energy) The City also imposes an equivalent franchise fee on CenterPoint Energy. Staff is also proposing (under separate action) to increase CenterPoint’s current basic Franchise Fee by $0.50/month per utility for residential customers. Per the City’s Long Range Financial Management Plan, by increasing franchise fees in 2013 and again in 2015, it is projected that the Pavement Management Program could be funded entirely by franchise fees making the fund sustainable in the long-term. Based on recent discussions with Xcel staff, they do not oppose this proposed increase in the franchise fee. Adoption Process and Schedule The following steps outline the adoption process to be followed: 1. Ordinances must contain all the terms and conditions of the franchise 2. Franchise ordinances require a public hearing 3. Hearing notice must be published at least once in the City's official newspaper at least twenty (20) days prior to the public hearing. 4. At least seven days must pass between first reading (public hearing) and 2nd reading 5. At second reading motion will be “Motion to adopt the ordinance, approve the summary and authorize summary publication” 6. Ordinance becomes effective 15 days following summary publication Based on the above process, staff has developed the following steps and schedule for adopting the franchise ordinance and franchise fee ordinance: Study Session - Written Report July 23, 2012 Study Session - Discussion Aug 13, 2012 Submit Public Hearing Notice to Sun Sailor Aug 30, 2012 Public Hearing Notice Published Sept 6, 2012 First Reading and Public Hearing Oct 1, 2012 Second Reading (adopt franchise and fee ordinances, approve summary, and authorize summary publication) Oct 15, 2012 Submit Summary to Sun Sailor Oct 18, 2012 Summary Publication Oct 25, 2012 Franchise Ordinance Effective Date Nov 9, 2012 Franchise Fee Ordinance Effective Date (90 day PUC submission period) Jan 23, 2013 Summary and Recommendations City staff has not identified any issues associated with adoption of this franchise fee ordinance which imposes an increased franchise fee on Xcel. Staff is proposing, and Xcel supports, that their franchise fee is consistent with the franchise fee we impose on CenterPoint Energy. The current Xcel franchise ordinance expires February 20, 2013. Per the schedule above, the planned effective date of this Franchise Fee would be no later than January 23, 2013. Staff recommends Council approve 1st Reading and set 2nd reading for October 15th as per the schedule outlined above. City Council Meeting of October 1, 2012 (Item No. 6e) Page 3 Subject: Public Hearing 1st Reading of Ordinance Imposing Franchise Fee on NSP (D/B/A Xcel Energy) FINANCIAL OR BUDGET CONSIDERATIONS: The city’s Pavement Management Program is currently funded by franchise fee revenues, collected for us by both Xcel and CPE, along with some general funds. Franchise fees can be collected by a utility when the city has a franchise ordinance providing for this. Thus, failure to grant Xcel a utility franchise would result in the loss of franchise fee revenues for our Pavement Management Program. Based on the current fees, total franchise fees generate approximately $1.35 million annually (CPE - $510,654; Xcel - $843,445). The proposed increase in the Xcel franchise fee would add approximately $153,000 in additional annual revenue to the Pavement Management Program, and provide greater sustainability into the future. By implementing this proposed franchise fee increase for 2013, St. Louis Park would still be competitive with other cities in the area. VISION CONSIDERATION: Not applicable. Attachments: Franchise Fee Estimate Franchise Fee Ordinance Prepared by: Michael P. Rardin, Public Works Director Steve Heintz, Finance Supervisor Reviewed by: Tom Scott, City Attorney Approved by: Tom Harmening, City Manager City Council Meeting of October 1, 2012 (Item No. 6e) Page 4 Subject: Public Hearing 1st Reading of Ordinance Imposing Franchise Fee on NSP (D/B/A Xcel Energy) City of St Louis Park, Minnesota Franchise Fee Estimate Variable Increases Proposed for 2013 Beginning in 2013 and Every Other Year After an Increase of $0.50 For All Non Large C/I, With Large C/I Increase of $4.00. Xcel - Electric CUSTOMER CLASS AVERAGE MONTHLY CUSTOMER COUNT ESTIMATED ANNUAL FRANCHISE FEE REVENUES 2013 New Revenue Estimate MONTHLY FLAT FEE 2013 New Fee Proposal Residential* 22,242 $533,808 $667,260 $2.00 $2.50 Small C&I – Non-Demand* 1,350 $64,800 $72,900 $4.00 $4.50 Small C&I – Demand 699 $111,141 $115,335 $13.25 $13.75 Large C&I 149 $130,524 $137,676 $73.00 $77.00 Public Street Lighting 75 $0 Municipal Pumping – Non-Demand 21 $1,012 $1,139 $4.00 $4.50 Municipal Pumping – Demand 18 $2,160 $2,268 $10.00 $10.50 Total 24,554 $843,445 $996,578 Net Increase $153,133 CenterPoint - Heating Gas CUSTOMER CLASS AVERAGE MONTHLY CUSTOMER COUNT ESTIMATED ANNUAL FRANCHISE FEE REVENUES 2013 New Revenue Estimate MONTHLY FLAT FEE New Fee Proposal Residential 16,382 $393,168 $491,460 $2.00 $2.50 Commercial A 0 $0 $0 $2.00 $2.50 Commercial B 407 $19,536 $21,978 $4.00 $4.50 Commercial C 519 $82,521 $85,635 $13.25 $13.75 SVDF A & B 75 $11,925 $12,375 $13.25 $13.75 LVDF 4 $3,504 $3,696 $73.00 $77.00 Total 17,387 $510,654 $615,144 Net Increase $104,490 Total $257,623 City Council Meeting of October 1, 2012 (Item No. 6e) Page 5 Subject: Public Hearing 1st Reading of Ordinance Imposing Franchise Fee on NSP (D/B/A Xcel Energy) XCEL ENERGY ELECTRIC FRANCHISE FEE ORDINANCE ORDINANCE NO. ____-12 CITY OF ST. LOUIS PARK, HENNEPIN COUNTY, MINNESOTA AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE FRANCHISE FEE ON NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, D/B/A XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY OF ST. LOUIS PARK THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK, HENNEPIN COUNTY, MINNESOTA, ORDAINS: SECTION 1. DEFINITIONS. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: 1.1 City. The City of St. Louis Park, County of Hennepin, State of Minnesota. 1.2 Company. Northern States Power Company, a Minnesota corporation, d/b/a Xcel Energy, its successors and assigns. 1.3 Franchise Ordinance. The franchise ordinance adopted by the City - City Ordinance __________. 1.4 Notice. A written notice served by one party on the other party referencing one or more provisions of this Ordinance. Notice to Company shall be mailed to the General Counsel, 414 Nicollet Mall, 5th Floor, Minneapolis, MN 55401. Notice to the City shall be mailed to the City Manager, City Hall, 5005 Minnetonka Blvd., St. Louis Park, MN 55416. Either party may change its respective address for the purpose of this Ordinance by written notice to the other party. SECTION 2. ELECTRIC FRANCHISE FEE. 2.1 Purpose. The St. Louis Park City Council has determined that it is in the best interest of the City to impose a franchise fee on those public utility companies that provide natural gas and electric services within the City. Pursuant to the Franchise Ordinance the City has the right to impose a franchise fee on Company. 2.2 Franchise Fee Statement and Schedule. A franchise fee is hereby imposed on Company commencing with the March 2013 billing month, and in accordance with the following fee schedule: City Council Meeting of October 1, 2012 (Item No. 6e) Page 6 Subject: Public Hearing 1st Reading of Ordinance Imposing Franchise Fee on NSP (D/B/A Xcel Energy) Customer Classification Amount per Account per Month ($) Residential $2.50 per month Small C & I with no demand charge $4.50 per month Small C & I with demand charge $13.75 per month Large C & I Municipal $77.00 per month Municipal pumping with no demand charge $4.50 per month Municipal pumping with demand charge $10.50 per month 2.3 Account Fee. This fee is an account based fee and not a meter-based fee. In the event that an entity covered by this ordinance has more than one meter, but only one account, only one fee shall be assessed to that account. In the event any entities covered by this ordinance have more than one account, each account shall be subject to the appropriate fee. In the event a question arises as to the proper fee amount for any account, the highest possible fee amount shall apply. 2.4 Payment. Franchise fees are to be collected by the Company and submitted to the City as follows: January – March collections due by April 30. April – June collections due by July 31. July – September collections due by October 31. October – December collections due by January 31. 2.5 Record Support for Payment. The Company shall make each payment when due and, if requested by the City, shall provide a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total made to account for any non-collectible accounts, refunds or error corrections. The Company shall permit the City, and its representatives, access to the Company’s records for the purpose of verifying such statements. 2.6 Payment Adjustments. Payment to the City will be adjusted where the Company is unable to collect the franchise fee. This includes non-collectible accounts. 2.7 Surcharge. The City recognizes that the Minnesota Public Utilities Commission may allow the Company to add a surcharge to customer rates to reimburse the Company for the cost of the fee. 2.8 Relation to Franchise Ordinance. This Ordinance is enacted in compliance with the Franchise Ordinance and shall be interpreted as such. 2.9 Periodic Review. The City Council shall review this ordinance every two years in whatever manner the City Manager then determines to be appropriate. Failure to review this ordinance shall not in any way invalidate or limit it. SECTION 3. PREVIOUS FRANCHISE FEE ORDINANCE SUPERSEDED. This Electric Franchise Fee Ordinance supersedes Ordinance No. 2394-10. SECTION 4: EFFECTIVE DATE. This Ordinance takes effect ninety (90) days after its passage and publication. City Council Meeting of October 1, 2012 (Item No. 6e) Page 7 Subject: Public Hearing 1st Reading of Ordinance Imposing Franchise Fee on NSP (D/B/A Xcel Energy) ADOPTED this _____ day of __________, 2012, by the City Council of the City of St. Louis Park. Reviewed for Administration Adopted by the City Council October 15, 2012 City Manager Mayor Attest: Approved as to Form and Execution: City Clerk City Attorney Date Published:____________________