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HomeMy WebLinkAbout2012/08/27 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA AUGUST 27, 2012 5:45 p.m. SPECIAL CITY COUNCIL MEETING – Westwood Room 1. Call to Order 1a. Roll Call 2. Closed Executive Session - Westwood Room Closed Executive Session with attorneys for the purpose of discussing litigation strategy with the City’s attorney in Jason Martin vs. Officer John Herman. 3. Adjournment 6:30 p.m. CITY COUNCIL STUDY SESSION – Council Chambers Discussion Items 1. 6:30 p.m. Future Study Session Agenda Planning – September 10, 2012 2. 6:35 p.m. Update on Southwest Light Rail Transit (SWLRT) 3. 6:50 p.m. Solid Waste Collection Program - Plastics Education 4. 7:50 p.m. Beekeeping in St. Louis Park 8:20 p.m. Communications/Meeting Check-In (Verbal) 8:25 p.m. Adjourn Written Reports 5. Public Safety Software Update 6. Breck School – Private Activity Revenue Note, Series 2012A 7. 2012 Semi-Annual Housing Programs Report 8. Business Park Rezoning Process Update 9. Prism Dial-A-Ride Program Update 10. July 2012 Monthly Financial Report 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 Date: August 27, 2012 Agenda Item #: 1 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: SPECIAL COUNCIL MEETING – CLOSED EXECUTIVE SESSION EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Closed Executive Session with attorneys for the purpose of discussing litigation strategy with the City’s attorney in Jason Martin vs. Officer John Herman. RECOMMENDED ACTION: No formal action is requested. POLICY CONSIDERATION: Not applicable. BACKGROUND: Attorney Jon Iverson and Representatives from LMCIT will update the City Council on this matter. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. Attachments: None Prepared by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Meeting Date: August 27, 2012 Agenda Item #: 1 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: Future Study Session Agenda Planning – September 10, 2012 RECOMMENDED ACTION: The City Council and the City Manager to set the agenda for the regularly scheduled Study Session on September 10, 2012. POLICY CONSIDERATION: Does the Council agree with the agendas as proposed? BACKGROUND: At each study session approximately five minutes are set aside to discuss the next study session agenda. For this purpose, attached please find the tentative agenda and proposed discussion items for the regularly scheduled Study Session on September 10, 2012. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. Attachment: Future Study Session Agenda Planning – September 10, 2012 Prepared by: Debbie Fischer, Office Assistant Approved by: Nancy Deno, Deputy City Manager/HR Director Study Session Meeting of August 27, 2012 (Item No. 1) Page 2 Subject: Future Study Session Agenda Planning – September 10, 2012 Study Session, September 10, 2012 – 6:30 p.m. Tentative Discussion Items 1. Future Study Session Agenda Planning – Administrative Services (5 minutes) 2. Navigating the “New Normal” Workshop – Community Development (120 minutes) A panel of experts assembled and led by the Urban Land Institute Minnesota (ULI MN) will discuss with the City Council the implications of the dramatic changes in demographics, the economy and the environment facing the City of St. Louis Park in the years ahead. The Planning Commission and Housing Authority Board have also been invited to participate in the workshop. 3. Communications/Meeting Check-In – Administrative Services (5 minutes) Time for communications between staff and Council will be set aside on every study session agenda for the purposes of information sharing. End of Meeting: 8:40 p.m. Meeting Date: August 27, 2012 Agenda Item #: 2 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: Update on Southwest Light Rail Transit (SWLRT) RECOMMENDED ACTION: Jim Brimeyer will be present to brief Council on SWLRT – particularly from a preliminary engineering standpoint. POLICY CONSIDERATION: Does the City Council want any additional information from Mr. Brimeyer? BACKGROUND: The next step in the SWLRT (the Greenline) project is Preliminary Engineering. The Metropolitan Council had issued a Request for Proposal (RFP) for an Engineering Services Consultant on October 21, 2011. Two proposals were received on December 16, 2011 and a multi-agency evaluation panel evaluated the submittals. Since that time Met Council has concluded that the original RFP, which did not call for an independent engineering peer review, could be improved. They have concluded that it would be better to divide the Preliminary Engineering project into smaller contracts, rather than a single large contract; and, also to hire an independent engineering firm to conduct a peer review of the Preliminary Engineering consultant’s work products. These changes are intended by the Met Council to provide an extra measure of confidence that the project will be delivered effectively and safely. In July the Met Council canceled the original Preliminary Engineering RFP/contracting process and initiated a new process. New Requests for Proposals for Engineering Services have been or are being issued for consultants to prepare project engineering documents to the 30% completion level; and, for an independent engineering peer review consultant. The due date for Preliminary Engineering consultant proposals is October 2, 2012. The intent is for the contracts to be awarded by December 2012 or January 2013; and work to start in February 2013. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. Attachments: None Prepared by: Kevin Locke, Director of Community Development Approved by: Nancy Deno, Deputy City Manager/HR Director Meeting Date: August 27, 2012 Agenda Item #: 3 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: Solid Waste Collection Program - Plastics Education RECOMMENDED ACTION: The purpose of this report is to provide Council information on recycling of plastic materials, as it relates to the existing residential organized collection program. POLICY CONSIDERATION: Does the Council need any more information on this item at this time? BACKGROUND: History Over the past 6 months staff has been meeting with Council to review the existing residential program and discuss what program changes are being proposed with the 2013-2018 single family and 4-plex residential organized collection program. One item that has been discussed is expanding the types of materials collected, including plastics. During one of the previous study sessions, Council requested staff to provide Council with additional plastic recycling education information. Collecting Additional Plastics On May 21, 2012 Council approved the Hennepin County Recycling Grant Agreement for 2012- 2015. This agreement requires the City to adhere to Hennepin County’s Residential Recycling Funding Policy which requires a minimum list of materials to be collected curbside. Included on the list are all plastic containers and lids, #1-5. Municipalities have until January 1, 2013, to implement the terms of the funding policy. For some time staff has been negotiating for the collection of these additional plastics with Eureka Recycling in an attempt to conform to these new County requirements (we currently collect #1-2 plastics bottles with necks). Although hesitant at first, Eureka has agreed to make the change to collect #1-5 plastics; they have also agreed to collect #7 plastics as well. #3 and #6 Plastics There may be some health concerns associated with the manufacture, use, and disposal of #3 plastics. Eureka states #3 plastics cannot be recycled and they have not been able to locate or develop a domestic end market for #3 plastics, meaning they will most likely end up disposing of them with their other residuals (garbage) which are taken to the HERC or to a landfill. However, Hennepin County contends that #3 plastics are recyclable. Staff has had recent conversations with Waste Management and Allied Waste and both stated they are currently recycling #3 plastics. Staff has done a fair amount of literature research and found #3 plastics to be one of the less commonly recycled plastics, but it appears there are opportunities to recycle these materials. It should be said that of the total plastics collected for recycling, #3 plastics are a very small percentage. Study Session Meeting of August 27, 2012 (Item No. 3) Page 2 Subject: Solid Waste Collection Program – Plastics Education Finally, #6 Styrofoam is recyclable only if it is clean. Any contamination prevents its reuse; so conditional recycling of Styrofoam at drop-off facilities is possible, but curbside collection currently is not. Staff is not aware of any local haulers collecting Styrofoam curbside. County Communications Strategy To minimize confusion over plastics recycling and to maximize recycling quantities, county staff feels it is best to keep the plastics recycling message simple for residents and simply collect as many household plastic materials as possible. Waste Management and Allied Waste currently collect and recycle #1 - #7 household plastics. All plastics that can be recycled are separated as necessary at collector facilities and sent on for processing. Plastics which can’t be recycled are sorted out and taken to the HERC or to a landfill. This “new” communications, collection, and processing strategy spreading across industry does not appear unreasonable to staff. Plastics Discussion with Industry Experts In researching best practices associated with recycling, staff has found that there are varied methods for dealing with plastics collection, reuse, and disposal. In addition, there are possible health concerns associated with the manufacture, use, and disposal of some plastics. The composition of plastics is a complex matter, one which city staff’s expertise is somewhat limited. Therefore, to help Council better understand plastics manufacturing, recycling, re-use, and marketing, staff has arranged for several industry experts (Wayne Gjerde of MPCA, Paul Kronig of Hennepin County, and Brian Ukena of Eureka Recycling) to attend the study session and provide Council with plastics information and answer questions. Listed below are possible topics or questions that may be discussed: • What different types of plastics are used for household/consumer goods? • Until recently, most cities in the Twin Cities only collected #1-2 plastic bottles, what has changed? • What plastic types can and can’t be recycled? And why? • Are all recycling materials collected truly being recycled? • What is the difference between recycling and re-use? Does it matter? • Are there end markets for #3, #6 plastics? All plastics? • Are there health risks associated with #3 plastics? What are they? • Why doesn’t Hennepin County require collection of #6-7 plastics? • Discuss local markets vs. international markets for plastic materials. • Why is it difficult to establish end markets for all recycling materials? • What is being done on the legislative / manufacturing end to stop or minimize the use of materials like #3 plastics that have possible health concerns and are more difficult to recycle? • What plastics recycling information should be provided to city residents? Study Session Meeting of August 27, 2012 (Item No. 3) Page 3 Subject: Solid Waste Collection Program – Plastics Education Listed below are links to articles that Council may be interested in viewing: 1. http://www.ecologycenter.org/ptf/misconceptions.html 2. http://www.eurekarecycling.org/page.cfm?ContentID=126 3. http://www.sustainablecitiesinstitute.org/view/page.basic/class/feature.class/Lesson_Next _Gen_Curbside_Recycling 4. http://www.recycleyourplastics.org/ 5. http://www.ecolife.com/recycling/plastic/guide-to-recycling-plastic.html 6. http://www.ecolife.com/recycling/plastic/how-to-recycle-pvc-plastic-3.html 7. http://www.ecolife.com/recycling/plastic/how-to-recycle-ps-plastic-6.html 8. http://environment.about.com/od/earthtalkcolumns/a/recycleplastics.htm 9. http://earth911.com/recycling/plastic/plastic-containers/ Next Steps Based on Council direction, the following is planned: 1. Staff will prepare a contract amendment with Eureka Recycling to collect additional plastic materials as described above (#1 - #5 and #7’s). 2. Staff will work with the City’s Communication Coordinator to prepare an educational plan to inform residents of the new plastic materials to be collected. FINANCIAL OR BUDGET CONSIDERATION: There will be a cost to the City for Eureka to collect and process additional plastic materials. This detailed cost will be identified with the contract amendment presented to Council at a future study session meeting. VISION CONSIDERATION: The City’s refuse and recycling activities support or complement the following Strategic Direction adopted by the City Council. 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. Focus areas: • Educating staff / public on environmental consciousness, stewardship, and best practices. • Working in areas such as…environmental innovations. Attachments: None Prepared by: Scott Merkley, Public Works Coordinator Reviewed by: Michael P. Rardin, Director of Public Works Approved by: Nancy Deno, Deputy City Manager/HR Director Meeting Date: August 27, 2012 Agenda Item: 4 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: EXECUTIVE SUMMARY TITLE: Beekeeping in St. Louis Park POLICY CONSIDERATIONS: • Should the City of St. Louis Park prohibit or allow residential beekeeping within the city? • If allowed, to what extent should it be regulated and/or permitted? • Is further public input desired before the first reading of a draft ordinance? SUMMARY: There are numerous policy arguments to support both sides of discussion. Those supporting the practice and for allowing beekeeping in the city point to reasons of environmental health, local food production, and the personal benefits of the hobby. Those against beekeeping in the city are concerned with possible safety, maintenance, and nuisance issues. There are multiple avenues a city can take when deciding how to handle beekeeping. They include code silence on the issue, outright prohibition, regulated standards and practices, and permitting/licensing. Some common regulations include hive setbacks, fences, flyway barriers, water sources, and colony density. In providing direction to staff on how to proceed in possibly drafting an ordinance for consideration, Council should determine the desired level of public input in addition to the first reading public hearing. VISION CONSIDERATION: “St. Louis Park is committed to being a leader in environmental stewardship.” RECOMMENDED ACTION: Provide direction to City Staff on how to continue with drafting an ordinance prohibiting, regulating, or permitting/licensing beekeeping, or whether to proceed with no action. Provide further direction on the desired level of public input as discussion continues. ATTACHMENTS: Background Summary of Beekeeping Ordinances Prepared by: Ray French, Administrative Services Intern Reviewed by: Ann Boettcher, Inspection Services Manager Brian Hoffman, Inspections Director Approved by: Nancy Deno, Deputy City Manager/HR Director Study Session Meeting of August 27, 2012 Page 2 Title: Beekeeping in St. Louis Park BACKGROUND DISCUSSION: At the June 18, 2012 City Council Meeting, city staff advised the Council that the current City Code is not clear about whether the raising of honey bees is permitted and that the City has received questions and complaints about neighbors keeping bee hives. In response to those concerns, a provision was included in the ordinance amendments before them that prohibited the keeping of any bee colony or hive in the city. Due to the interest showed by resident beekeepers, the Council decided further study into the issue was necessary. Should the City of St. Louis Park prohibit or allow residential beekeeping within the city? There are numerous factors on both sides of the issue for the Council to consider. Those in favor of allowing beekeeping point to three primary areas. First, there are concerns over Colony Collapse Disorder and the rapidly declining bee population. By allowing the keeping of bees, the city is supporting environmental stewardship and encouraging the development of healthy plants and wildlife. Additionally, allowing beekeeping promotes local food production (honey) and the idea of home-grown and sustainable food sources. Lastly, beekeeping is a hobby that brings joy to its practitioners and provides an ecological service. Those opposed to residential beekeeping often point to three primary concerns with the practice. First, some residents may consider beekeeping a nuisance. Issues frequently reported include “yellow rain” on neighboring cars and patio furniture and a higher frequency of bees on neighboring property than would normally occur. Another issue can arise if proper maintenance of the bee colony is not kept. Without proper maintenance, a bee colony can deteriorate in ways that lead to unhealthy behavior. Lastly, some residents may feel a potential safety issue due to having such a large number of bees in a high density area. These factors and concerns should be weighed by the City Council when deciding whether to prohibit or allow residential beekeeping within the city. Beekeeping is being considered in many cities and has been approved in Minneapolis, Centerville, and Cold Spring in the last few years. Stillwater is currently considering a less-restrictive ordinance amendment to allow beekeeping in the community. If allowed, to what extent should it be regulated and/or permitted? The following reflects the four typical methods for addressing beekeeping at the municipal level: Unregulated: This is the current state of the City code on beekeeping. Because the City does not classify the keeping of bees one way or the other, there is a question of whether it is allowed or prohibited through the code silence. This confusion has led to the current discussion. Some cities do not discuss beekeeping in their code, either by affirmative choice or because the discussion has not reached them yet, and include the Cities of Hopkins, Minnetonka, and Inver Grove Heights. Regulating Standards and Practices There are numerous strategies for regulating beekeeping that cities have taken. Some of the primary methods of regulating beekeeping are through hive setbacks, flyway barriers, water sources, fences, and colony density. Hive Setbacks: These setbacks can range from 10 feet to 500 feet from the property line. The most common setback is 25 feet, but is usually in conjunction with requiring a flyway barrier Study Session Meeting of August 27, 2012 Page 3 Title: Beekeeping in St. Louis Park when less than 25 feet from the property line. Some ordinances require the hive to be at the center of the property, furthest away from adjoining property lines. Flyway Barrier: This would be a natural/vegetative or artificial barrier about six feet tall, usually within 10 feet of the hive. Many ordinances state that if the hive is less than 25 feet from the property line, a flyway barrier must be installed. This forces the bees to fly over the neighbor’s property as it leaves the hive. Fences: A protective fence would be similar to those required for swimming pools or other attractive nuisances, and would protect children and pets from inadvertent contact with the bee hive. A fence can be used a flyway barrier, or it can be within a number of feet to the hive or on the property line. Water Source: Many ordinances require the beekeeper to provide a water source, often within 10 feet of the hive, to keep the bees from using other water sources on adjacent properties. These can be anything from a puddle or bird bath to a swimming pool. By providing a water source near the hive, the beekeeper reduces the opportunities for bees to interact with neighbors. Colony Density: As listed on the Summary attachment, there are many different options for density that a city could choose. Other lesser-used regulations include requiring varying degrees of neighbor consent and the opportunity for a hearing if requested by a neighbor or if the city has reason to believe a hive is not in compliance. Lastly, the Cities of Brooklyn Park and Eagan allow beekeeping only in agricultural zones of at least twenty and five acres, respectively. Permitting & Licensing Requiring some form of permit or license for beekeeping is one of the more widely-used avenues of regulation. It is a feature of regulatory schemes in Minneapolis and St. Paul, and was recently enacted in Centerville. As Stillwater is considering amendments to its ordinances on beekeeping, a permitting process was added by their Planning Commission. Many cities that require a permit for beekeeping issue annual permits upon certification of compliance and the paying of an initial, one-time fee. Similarly, an installation permit for the bee colony could be issued, requiring an inspection and a fee-for-service paid. An option to include would be requiring the primary beekeeper to provide evidence of training or certification. There also may be other provisions in the event that the beekeeper intends to sell the honey produced. Prohibition: One last way to address the issue of beekeeping is to prohibit the practice within city limits. Some neighboring cities that currently prohibit the keeping of bees include Edina, Golden Valley, Maple Grove, Plymouth, and South St. Paul. Is further public input desired before the first reading of a draft ordinance? Given the public interest in this issue, the Council may want to consider further opportunities to gather input from residents and those with an interest in beekeeping prior to the consideration of a draft ordinance. NEXT STEPS: Should the City of St. Louis Park prohibit or allow residential beekeeping within the city? Study Session Meeting of August 27, 2012 Page 4 Title: Beekeeping in St. Louis Park If allowed, to what extent should it be regulated and/or permitted? (a) If the Council decides to prohibit beekeeping, city staff will return with an ordinance amendment for first reading. (b) If the Council decides to allow beekeeping, the second question to reach is to what extent beekeeping should be regulated by the City and which regulations should be included. Staff recommends that if beekeeping is allowed and regulated by the city, it should be set up in a way that best protects the rights of property owners on small lots. Staff believes that the best way to achieve this is in the form of an installation permit. Of the avenues available for regulation, staff recommends the following requirements for a resident to meet before the permit is issued: (1) Evidence of training as a beekeeper from an accredited program. (2) A fee-for-service inspection of the bee colony. (3) Specific installation requirements: (a) A colony density similar to the proposed Stillwater ordinance. (b) A water source must be provided within 10 feet of the hive. (c) A protective fence either within 10 feet of the hive or on the property line. (d) A prohibition of beekeeping on multiple family lots. (e) A prohibition of beekeeping in front yards. (f) Allowing one nucleus colony for each hive permitted. (g) A setback requirement, either (i) 25 feet from adjoining property lines, effectively eliminating beekeeping in most of the city; or (ii) if the hive is located less than 25 feet from the lot line, but no closer than 10 feet, an artificial flyway barrier is required. If the Council decides to allow beekeeping and regulate the practice through installation permits, the city staff will return to an upcoming study session with a draft ordinance. Is further public input desired before the first reading of a draft ordinance? If the Council decides that additional public input is desired prior to the first reading of a draft ordinance, staff and the Council can schedule a separate public hearing on the issue. FINANCIAL OR BUDGET CONSIDERATION: If the Council proceeds with the installation permit process, the staff time dedicated to inspecting bee colonies and issuing permits should be compensated by the fee-for service permit. Study Session Meeting of August 27, 2012 Page 5 Title: Beekeeping in St. Louis Park SUMMARY OF BEEKEEPING ORDINANCES Footnotes 1 No required setback, but if a hive is less than 25 feet from the lot line, a flyway barrier is required. 2 Unless hives are more than 25 feet from lot lines, then no flyway barrier is required. 3 So long as colonies remain active outside the hive. 4 One more hive allowed temporarily if the resident beekeeper is providing swarm services in the City. 5 For each hive permitted, one nucleus colony is also permitted. 6 Beekeeping training required. 7 Self-latching fence at least ten feet from hive area and four to six feet tall. 8 No restrictions if hives set back 200 feet from all property lines or if adjacent property within 200ft is undeveloped. 9 The hive(s) shall be located in the center of the property furthest away from adjoining property lines. 10 Not allowed on multiple family lots (three or more dwelling units). 11 100 feet from any lot used residentially or platted for future residential use and 150 feet from any dwelling on a neighboring lot. 12 Not within 50 feet of any occupied dwelling, except the dwelling of the owner, or not within 25 feet of public property line. 13 No hives in front yards. City Permit Hive setback Fence Flyway barrier Water source Colony density MN Hobby Beekeeper’s Model Ord. No Yes1 No Yes2 Yes3 <0.5 ac = 1 .5 - .75 ac = 2 .75 - 1 ac = 4 1 - 5 ac = 8; >5 ac = no restriction4, 5 Minneapolis Yes6 Yes1 Yes7 Yes2 Yes3 <0.5 ac = 2 .5 - .75 ac = 4 .75 - 1 ac = 6 1 - 5 ac = 8 >5 ac = discretion4, 5, 8 St. Paul Yes Yes9 Yes7 Yes No 1 hive per 2,000 square feet of lot10 Stillwater (proposed) Yes6 Yes1 No Yes2 Yes3 <0.5 ac = 1 .5 - .75 ac = 2 .75 - 1 ac = 4 1 - 5 ac = 8; >5 ac = no restriction10 Bloomington No Yes11 No No No 1 ac per hive10 Centerville Yes 25 feet No No No .5 ac lot minimum, 2 hives maximum Cold Spring Yes Yes12 Yes7, 13 Yes Yes 2 per parcel or lot4, 5, 10 Milwaukee Yes Yes Yes Yes Yes 2 per parcel or lot Meeting Date: August 27, 2012 Agenda Item #: 5 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 Safety Software Update RECOMMENDED ACTION: No action requested at this time. POLICY CONSIDERATION: Does Council wish to have more detailed information provided on the public safety software situation at this time? BACKGROUND: The City of St. Louis Park Police Department has utilized computerized Records and Computer Aided Dispatch systems since 1984. Later in the 1980’s computerized mobile devices started being introduced into squads and have since become a standard feature. The CAD system also serves the St. Louis Park Fire Department as the dispatch operation is part of the Police Department. Since 1984, the Police Department has collaborated with several other metro area agencies through the LOGIS consortium (www.logis.org). Such collaboration is designed to share risks, costs, and information among the participating agencies. Agency representatives research and select computerized software applications that LOGIS staff is then requested to implement. The software applications are replaced periodically as technology changes and more features are requested. For approximately the last 10 years, the LOGIS police agencies have utilized a Records – CAD – Mobiles software suite from Motorola. In 2008 the Public Safety Steering Committee, composed of representatives from several public safety agencies, researched alternative software packages and recommended acquisition of a new Motorola product that was still in its development phase. While there were other software packages available at that time, they either did not meet requirements of the public safety agency collaboration or the price point was deemed unaffordable. The public safety agency representatives felt the Motorola suite was the best among a very limited choice in this marketplace. Following contract execution in 2009, Motorola continued development and began its implementation of the new software suite code-named Premiere One. Since then, Motorola has yet to be successful in implementing its software to the satisfaction of the LOGIS public safety agencies. LOGIS staff is in agreement. In July it reached the point where the LOGIS Board of Directors authorized staff to provide a notice of default and cure to Motorola relating to the Premiere One project and take legal actions consistent with termination of the contract. The goal would be to make LOGIS and member public safety agencies – St. Louis Park is one of about 25 agencies – whole for costs incurred during this project. Obviously, there are many legal steps to complete in this process. Study Session of August 27, 2012 (Item No. 5) Page 2 Subject: Public Safety Software Update Since 2009, several things have evolved: • First, Motorola has failed in its project implementation. Its promises have not materialized. • It appears other software products may have emerged in the public safety software product arena. St. Louis Park public safety staff has been researching some of these products. • It may be that some of these products are more competitively priced than the product choices in 2008, possibly making it cheaper to be on our own than collaborating with other agencies. A full accounting of costs and services would be needed on this. • Based on reviewing other public safety agencies, it seems clear there are companies that are more reliable than Motorola has been with delivering promised public safety software. • It may be that more companies will have offerings for not only Police records systems, but Fire records systems as well. Those were also very few in 2008, and could provide a rise in software service levels for Fire as well. • It may be that the advantage of sharing data across public safety agencies is not as critical as it was once perceived to be. This is especially true as the State has evolved its own data repository. • As the number of collaborating public safety agencies has grown and St. Louis Park’s business needs have diverged from those of other agencies, St. Louis Park Police Department staff feel it may make more sense to be on our own for public safety software (like Edina or Eden Prairie, as a couple examples), rather than collaborate with a larger group of agencies. That said, Police may be interested forming a partnership with Minnetonka and maybe others with whom we share a more common business process (and therefore software application) in public safety. For many of the same reasons stated above, it is likely that some remaining public safety agencies collaborating through LOGIS will continue to work together to adopt a replacement public safety software suite of products. To be sure, there are many other LOGIS infrastructure services that hold value and need to be part of our own longer-term analysis. Still, St. Louis Park Police staff feel that process may well take longer than the department wishes to wait, especially given the almost 3 years since the contract with Motorola was signed, and possibly be more expensive overall. At the direction of the City Manager, the Police Department staff is currently identifying consultants who could assist the Police Department in developing an RFP that ensures its business process needs can be addressed by proposals for a replacement system. This will allow us to test the marketplace and compare the value propositions offered by current vendor products and products / packages that could be obtained through the larger consortium. Further, St. Louis Park and Minnetonka agency staff have met. The respective city managers are planning to meet on options as well. Following that analysis, a subsequent report (and possible request to enter into a contract) will be submitted to the City Council. It should be noted that while this entire analysis is carried out and completed, LOGIS will continue to provide services with the existing Records – CAD – Mobiles software suite for St. Louis Park. While this suite does not include all features agencies, including St. Louis Park, feel are needed to meet current and emerging business needs, the city is not currently in danger of losing existing capabilities to support Police and Fire functions and serve our constituents. Study Session of August 27, 2012 (Item No. 5) Page 3 Subject: Public Safety Software Update FINANCIAL OR BUDGET CONSIDERATION: Funds for the possible acquisition of a new public safety software suite and the potential to replace some other services Police currently share through the LOGIS consortium have been included in the 2013 Capital Replacement Fund VISION CONSIDERATION: Not applicable. Attachments: None Prepared by: Clint Pires, Chief Information Officer Reviewed by: John Luse, Police Chief Approved by: Nancy Deno, Deputy City Manager/HR Director Meeting Date: August 27, 2012 Agenda Item #: 6 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: Breck School – Private Activity Revenue Note, Series 2012A RECOMMENDED ACTION: None at this time. This report is intended to update City Council on a request from Breck School to issue private activity revenue bonds for the construction of improvements to the school facility. POLICY CONSIDERATION: The proposed process is consistent with the City’s approved policy for issuing/refunding private activity revenue bonds. Does the City Council have any questions or concerns with issuing the private activity revenue bonds as proposed? BACKGROUND: Breck School plans to demolish the existing upper school, previously Golden Valley High School, and build a new upper school. The project also includes modernizing the school's science facilities. The construction started this summer and will be complete before the 2013-2014 school year begins. Breck School is located in Golden Valley and draws students from many of the western suburbs, including the City of Minnetonka and the City of St. Louis Park. The City of Minnetonka will be issuing $6,500,000 in bonds and the City of St. Louis Park is also being asked to issue $6,500,000 in bonds to help finance the project. This is an acceptable joint effort for Breck School, the City of Minnetonka and the City of St. Louis Park to participate in. The bonds will be bought by U.S. Bank National Association in a negotiated sale. The synopsis of the process for issuing these bonds will include this Study Session report on August 27, 2012. Next, if City Council has no objections based on the report, a public hearing which is proposed for the regular City Council meeting of September 24, 2012 will be conducted. After the public hearing is closed, the City Council will be asked to consider a resolution authorizing issuance of the bonds and the execution of related documents. If the City Council approves the resolution, this would allow the bonds to be issued on a date agreed upon by the parties. FINANCIAL OR BUDGET CONSIDERATION: Breck School will provide the City with an application for Private Activity Bond Issue, which will be on file in the City Clerk’s office, along with the required fee of $2,500 in accordance with the City’s policy. These bonds are not obligations of the City in any respect, but rather are payable solely from revenues of Breck School. They will also pay a fee of 1/8th of one percent in two semi-annual payments to the City based on the amount of bonds outstanding each year. These monies will be deposited in the City’s Housing Rehabilitation Fund. VISION CONSIDERATION: By working with other entities such as Breck School, the City of St. Louis Park is demonstrating its commitment to being a connected and engaged community. Attachment: Letter from Kennedy & Graven, Chartered, Outlining Entire Process Prepared by: Brian A. Swanson, Controller Approved by: Nancy Deno, Deputy City Manager/HR Director Study Session Meeting of August 27, 2012 (Item No. 6) Subject: Breck School – Private Activity Revenue Note, Series 2012A Page 2 Study Session Meeting of August 27, 2012 (Item No. 6) Subject: Breck School – Private Activity Revenue Note, Series 2012A Page 3 Meeting Date: August 27, 2012 Agenda Item #: 7 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: 2012 Semi-Annual Housing Programs Report RECOMMENDED ACTION: The purpose of this report is to update to the Council on housing programs and activity. This report is informational and no action is required. POLICY CONSIDERATION: None at this time. Please let staff know of any comments or questions you might have. BACKGROUND: The Semi-Annual Report of Housing Programs and Activity with its attached Housing Matrix has been presented to council since 2005. The Executive Summary provides a quick review of the detailed report. Most notable for the first half of 2012 is that the apartment construction building boom is underway with over 400 units under construction, and that residents are continuing to improve their homes despite the economy. FINANCIAL OR BUDGET CONSIDERATION: Not applicable VISION CONSIDERATION: The City’s housing programs meet St. Louis Park’s Vision commitment to provide a well- maintained and diverse housing stock; and to incorporate and provide incentives for “green” building design; and provide affordable ownership opportunities. Attachments: Semi-Annual Housing Programs Report - 2012 Prepared by: Kathy Larsen, Housing Programs Coordinator Reviewed by: Kevin Locke, Community Development Director Approved: Nancy Deno, Deputy City Manager/HR Director Housing Activity Report, June 30, 2012 1 Semi - Annual Housing Programs Report – June 2012 EXECUTIVE SUMMARY The purpose of this report is to apprise City policy makers of housing program activity in the first half of 2012. The report provides historical trends and program descriptions. Below are key points of 2012, with details following this summary. 1. Remodeling Activity • Residents continue to maintain and invest in their properties; the 2012 projects are lower in cost and most are financed without using city loans. • Use of the city’s technical and design services equals and exceeds last year. Since March, 60 home energy visits have been conducted through the new Community Energy Services Program. • Home additions and major remodeling projects have slowed to a rate 40% less than the recession years of 2009-11, and the Move-Up Loan activity mirrors this slow-down of additions. • Discount Loan use is on pace with 2011, but slow compared to a five year average. Our lender confirms that more SLP loans were closed in the first half of the year than any of the other 18 cities they service. Slow lending reflects moderate-income households’ reluctance to take on additional housing debt at this time. 2. Affordable Home Ownership and Public Housing Update • Preservation of 326 modest valued condos/townhomes at Greensboro Square and Westwood Villa is occurring with city HIA loans. Seven HIAs have been established to date, and Cedar Trails, the first, is scheduled to terminate in 2012. • Live Where You Work, the homebuyer’s assistance program, activity reflects the slow housing market; thirteen homebuyers used the program since it began in spring 2009, one in 2012. • Homes within Reach has provided affordable ownership for one low income family in SLP so far in 2012. • Habitat for Humanity celebrated their 2000th MN home, at the 3317 Texas Ave property where Senator Franken participated in the work and celebration on August 15th. This is the 9th Habitat home in SLP since 1999. • The SLP Housing Authority has high occupancy and long waiting lists. 3. Housing Matrix • St. Louis Park is experiencing a multifamily construction boom, over 400 apartment units are under construction with plans for 58 more units at Ellipse 2. • 22 rental townhomes are being constructed. • 6 new large sf homes are being built, 5 of which are “ teardowns/rebuilds”. 4. Foreclosures The 2012 foreclosure rate is slowing, so far in 2012 there have been 65 foreclosures compared to 163 in 2011. Condo foreclosures are down even more, only 12 so far this year compared to almost 100 in the previous 2 years. Study Session Meeting of August 27, 2012 (Item No. 7) Subject: 2012 Semi-Annual Housing Programs Report Page 2 Housing Activity Report, June 30, 2012 2 1. REMODELING ACTIVITY Residential permitted activity measures remodeling and maintenance activity, this section shows historical trends of remodeling activity. Permit Trends • “Alteration Residential” or general remodeling The chart below shows the trend line of increasing general remodeling activity over time. This work includes projects with permit valuations less than $37,500, (the average value per job is approximately $7,000) and includes: o remodeling of bathrooms and kitchens; o finishing basement and attic space, porches o conversion of existing space to bathrooms, o window and door replacements, insulation, o drain tile work, steps and foundation work. This trend line below reflects: residents’ willingness to preserve and update housing; the impact of the city’s proactive housing improvement assistance; and the ongoing needs of older housing stock. General remodeling activity to date is on pace to match 2011. Chart 1. Trend of Maintenance & Minor Remodeling Permits Since 2005 471 517 785 797 971 869 1129 463 0 500 1000 1500 2005 2006 2007 2008 2009 2010 2011 2012 1st HalfNumber of Permits IssuedYear Maintenance & Minor Remodeling Permits Alteration Residential • Roofing and siding activity Roofing and siding permits are tracked separately. This chart illustrates the impact of storm damage in 2008-9 and again in 2011. Almost 60% of the homes in the city have had roofs replaced from 2008-2011. It is likely the number of reroofs will be low for the next decade or so, as reflected by less than 60 in 2012. Trend Line Study Session Meeting of August 27, 2012 (Item No. 7) Subject: 2012 Semi-Annual Housing Programs Report Page 3 Housing Activity Report, June 30, 2012 3 Chart 2. Roofing and Siding Permits Since 2005 • Additions and Major Remodeling Unlike the maintenance and minor remodeling activity, residential additions and major remodeling activity has slowed in the first half of 2012 as illustrated in the following chart. If this pattern holds, 2012 activity will be down about 40% from previous years. Chart 3. Number of Addition and Major Remodeling Permits Since 2005 • Permit Valuation 2005 – 1st half 2012 The 2012 valuation for single family remodeling activity is about the same or slightly ahead of the 1st half of 2011. The following chart shows historical remodeling permit valuation for additions, major remodels, remodeling and maintenance, garages/decks, re-roofs, and siding. Additional permits with additional valuations were issued for plumbing, heating, and electrical work. 55 86 102 89 55 40 48 14 45 50 50 46 50 53 46 14 0 40 80 120 2005 2006 2007 2008 2009 2010 2011 2012 1st HalfNumber of Permits IssuedYear Addition and Major Remodel Permit Activity Addition Residential Major Remodels 202 216 355 845 201 761 56 85 66 84 573 332 117 117 400 500 1000 1500 2005 2006 2007 2008 2009 2010 2011 2012 1st HalfNumber of Permits IssuedYear Roofing and Siding Permits Reroof Reside Roofing permits (4,828) were off the chart in 2008. Study Session Meeting of August 27, 2012 (Item No. 7) Subject: 2012 Semi-Annual Housing Programs Report Page 4 Housing Activity Report, June 30, 2012 4 As the chart illustrates permit valuation varies significantly from year to year, but, with the exception of the “year of the hail damage repairs” (2008), valuation has ranged between $14 and $27 million. This year is expected to be similar. Chart 4. Permitted Residential Remodeling Since 2005 City Housing Improvement Services, Loans Trends and Program Descriptions • Home Improvement Services. Use of the city’s technical services is ahead of use in the 1st half of 2011. So far 44 remodeling advisor visits have been conducted; the architectural design service is on pace to exceed the three previous years; and the Community Energy Services, Home Energy Visits have been used by 60 residents since implementation in March. Chart 5. Technical, Design and Energy Conservation Services Since 2005 $14 $15 $23 $68 $27 $17 $26 $8 0 20 40 60 80 2005 2006 2007 2008 2009 2010 2011 2012 1st HalfPermit Valuation -Million $Year Residential Remodeling Permit Valuation 68 102 62 48 32 30 29 22 221 157 179 130 126 89 82 44 60 0 50 100 150 200 250 2005 2006 2007 2008 2009 2010 2011 1st Half 2012Number of VisitsYear Technical Home Improvement Services Architect Services Remodeling Advisor Home Energy Visits Study Session Meeting of August 27, 2012 (Item No. 7) Subject: 2012 Semi-Annual Housing Programs Report Page 5 Housing Activity Report, June 30, 2012 5 • Home Remodeling Fair and Tour Trend Both the Home Remodeling Fair and Tour attracted as many residents as ever; 396 – 500 residents visited each of the five tour homes; and approximately 1,500 attended the Annual Fair. • City Loan and Rebate Trends The following chart shows that the number of Move Up loans, Discount loans and rebates issued in recent years. The number of discount loans, ten, is consistent with 2011 activity. CEE notes that home improvement loan use is slow in their service area. The number of Move Up loans is down significantly in 2012 so fare. There also has been a drop-off in use of energy rebates no doubt reflecting the economy. Chart 6. Use of City Financial Incentives Since 2005 Study Session Meeting of August 27, 2012 (Item No. 7) Subject: 2012 Semi-Annual Housing Programs Report Page 6 Housing Activity Report, June 30, 2012 6 Summary of Move-Up Activity Loan and Service Costs Since 2005 The following table provides a snapshot of participation and costs of the city incented home improvement programs and services since 2005. Study Session Meeting of August 27, 2012 (Item No. 7) Subject: 2012 Semi-Annual Housing Programs Report Page 7 Housing Activity Report, June 30, 2012 7 2. AFFORDABLE HOME OWNERSHIP, COMMUNITY DEVELOPMENT BLOCK GRANTS AND PUBLIC HOUSING UPDATE Live Where You Work The Live Where You Work Homebuyer Assistance Program began in spring 2009. The goal is to promote home ownership within the City among employees of St. Louis Park businesses. The city provides a deferred loan of $2,500 to an eligible employee and an additional $1,000 is provided to employees purchasing vacant lender owned foreclosed properties. Employers are invited to contribute a matching or lesser amount to the City’s contribution. The deferred loan will be forgiven after 3 years if the employee continues to work for the employer and meets other qualification requirements. The City contracts with CEE for loan administration. One homebuyer has used this program in the 2012, for a total of thirteen participants to date. Housing Improvement Area (HIA) The HIA is a finance tool to assist with the preservation of the city’s existing housing stock. An HIA is a defined area within a city where housing improvements are made and the cost of the improvements are paid in whole or in part from fees imposed on the properties within the area. The Association borrows low interest money from the City; improvements are completed; and unit owners repay the loan through fees imposed on their properties, and collected with property tax payments. The first HIA was established in 2002, to date, seven HIA’s have been established and over ten million dollar of improvements has been made to 792 units. Greensboro Condos HIA was established in 2011, and improvements totaling nearly $4,000,000 are being completed this year. Westwood Villa Association HIA will begin construction in July, 2012, for $1,400,000 worth of improvements. Community Development Block Grant (CDBG) Activity completed in 2012 was funded with 2011 CDBG funds. Approximately $180,000, funded improvements to a SLP Housing Authority home, the single family low-income homeowner’s emergency repair and loan programs, Homes within Reach, STEP’s roof replacement and Park & Rec Summer Youth Programming. West Hennepin Affordable Housing Land Trust, aka Homes Within Reach (HWR). Homes within Reach is a program of West Hennepin Housing Land Trust that purchases homes and sells them to low income homebuyers. Buyers pay for the cost of the building only and lease the land for 99 years. City funds are leveraged with Met Council and county HOME and AHIF funds. Since the program began in 2007, nine homes have been sold to low income families, one occurred in 2012. Typically WHAHLT does 1 or 2 homes each year in SLP. Twin Cities Habitat for Humanity The city has partnered with Habitat over the years to acquire nine blighted properties for rehab or tear-down for new construction. In 2011 the city assisted Habitat with the purchase of one property, with construction scheduled to be complete fall 2012. Study Session Meeting of August 27, 2012 (Item No. 7) Subject: 2012 Semi-Annual Housing Programs Report Page 8 Housing Activity Report, June 30, 2012 8 3. HOUSING MATRIX The housing matrix shows at a glance the numbers and percentages of housing types, tenure (owner or non-homesteaded), affordable units, senior designated units and large single family homes. The matrix is a guide to evaluate future housing development proposals. The attached matrix is updated semi-annually and presented to the City Council, Housing Authority and Planning Commission and following are housing change highlights of the first half of 2012. 2012 1st Half Highlights • Multifamily residential building boom, over 400 units under construction and plans underway for another 58 units. • Six new large single family homes are under construction, five of which were tear downs. • Single family home expansions and major remodels are on pace to be 40% lower than previous years. • The percentage of owner occupied (homesteaded) units has dropped one percent in the 1st half of this year. The citywide ratio of homestead to non-homestead property is 57/43. • The chart shows percentages of homesteaded residential units over time. In the first half of 2012, 92% of single family detached homes are owner occupied and 74% of condos/townhomes are owner occupied. Considering the ongoing volatile housing market, owner occupancy in SLP is remaining relatively stable. Chart 7. Percentage Owner Occupied Units since 2006 • The SLPHA 2011 Rental Study cites the St. Louis Park 2011 vacancy rate at 3.5%, which is quite low. By the 2nd quarter of 2012, the regional rental vacancy was 2.7% (Star Tribune 7/25/12). • Rental of duplexes remains strong and reflects strong rental market – 66% of the duplex units are currently rental. • There are approximately 2,300 non-homesteaded single family, condo/townhome and duplexes. Many of the non-homesteaded units are owned by “snowbirds”, or occupied by the owners’ family members. Study Session Meeting of August 27, 2012 (Item No. 7) Subject: 2012 Semi-Annual Housing Programs Report Page 9 Housing Activity Report, June 30, 2012 9 Large Single Family Homes One of the City’s housing goals is to increase the number of larger homes available in the city. The following charts illustrate expansion and new construction activity since we began tracking this in 2005. In the first half of 2012, 20 large homes have been added; 6 are new construction, 5 of which are “tear-downs” and 14 existing homes added significant expansions. Chart 8. Single Family New Construction and Expansions by Year “Large single family homes” are being defined as exceeding 1,500 square feet of living space, having 3 or more bedrooms, 2 or more baths and at minimum a 2 car garage. According to SLP Assessing Department* there are now 2,010, or 17% of SLP single family homes that meet this threshold. Although this size home is not considered large when compared to new housing, it is when compared to SLP homes where 75% are less than 1,200 square feet. *Our property assessment data systems have become more accurate over the years and Assessing is confident this number is reflective of the number of “larger single family homes”. Affordable Housing Thirty-nine percent of the total city housing stock is considered affordable. The Met Council revised the affordability guideline in 2011. The new affordable guideline is that housing is affordable to households with incomes at or below 60% median area income, ($50,350 family of four) paying thirty percent of their income for housing costs whether renting or owning. The previous guideline was 50% MAI for rental, and 80% MAI for ownership. Owner Occupied • The 2012 affordable ownership purchase price is $171,500 or less. • Based on the new guideline or 60% MAI versus 80% MAI there are significantly fewer owner occupied homes considered affordable than in 2010. • Yet, in 2012 the number of homes considered affordable increased more than 1,600 units due to decreased estimated market values of lower priced single family homes and condominiums. Study Session Meeting of August 27, 2012 (Item No. 7) Subject: 2012 Semi-Annual Housing Programs Report Page 10 Housing Activity Report, June 30, 2012 10 Rental • The 2012 affordable monthly rent including utilities for a 2 bedroom apartment for a family of four is $1,134. • There is an estimated minimum of 5,318 affordable rental units – including known subsidized units and estimated market rate units. • The estimated number of market rate affordable rental units is based on the SLPHA Rental Study. The 2011 Study represents responses from 96% of the multiple family units and 87% of the buildings, which is a significantly higher response rate than in previous years, still this number does not represent all the rental units in SLP. Table 2. Comparison of Affordable Units from 2010 - 2012 2010 Guideline 2010 Numbers 2011 Guideline 2011 Numbers 2012 Guideline 2012 Number Affordable Ownership Units $233,100* 8,581 $160,250* 2,264 $171,500* 3,876 Affordable Rental Units Estimated & Subsidized $943** 3,734 $1,116** 4,138 $1,134** 5,318 Totals 11,261 6,402 9,194*** *House Value ** Monthly rent of 2BR apartment and family of 4. *** 9,194 units represents 39% of total city housing units Study Session Meeting of August 27, 2012 (Item No. 7) Subject: 2012 Semi-Annual Housing Programs Report Page 11 Housing Activity Report, June 30, 2012 11 4. RELATED ISSUES Foreclosures Foreclosures are measured by the number of sheriff sales. The rate of residential foreclosures is lower in the first half of 2012 with 65 sales, than the two previous years, matching the metro area trend of fewer foreclosures. Ongoing foreclosures are primarily related to loss of employment and underemployment. The chart below shows foreclosures since tracking began in 2006. Chart 10. St. Louis Park Residential Foreclosures by Year 2006 - 2011 Along with an overall slowing of residential foreclosures, the pace of the condominium foreclosures has slowed as noted in the trend chart below which shows foreclosure by housing type over time. In the previous 2 years there were almost 100 condo foreclosures, so far in 2012 there have been twelve. Chart 11. Residential Foreclosures by Housing Type 76 87 133 92 111 163 65 0 40 80 120 160 200 2006 2007 2008 2009 2010 2011 1st Half 2012Number of Sherrif Sales Year Residential Foreclosures by Year Study Session Meeting of August 27, 2012 (Item No. 7) Subject: 2012 Semi-Annual Housing Programs Report Page 12 Housing Activity Report, June 30, 2012 12 Property Work Group The City’s Property Watch Team, developed in 2006, monitors foreclosure activity and problem properties. Staff from all departments track, monitor and respond to issues related to problem foreclosed homes. The goal of this effort is to ensure that vacant, foreclosed homes do not become “problem properties.” Inspections Department follows-up with vacant foreclosed properties through the Property Maintenance Inspection process and complaints and works with bankers, investors and the managing companies. In addition to the City’s concerted efforts, bankers and lenders have become far more proactive in ensuring their investments are maintained. The city continues to promote the foreclosure prevention services provided by Community Action Partnership of Suburban Hennepin County and Home Ownership Center through direct mailings, Park Perspective, City’s social media and staff referrals. Louisiana Court Update As of December 2011, PPL/Louisiana Court is near 100% occupancy. This is continuing in 2012 as Metro Plains Management Company assumed property management of PPL’s Louisiana Court complex in June 2011. Due to the continuing high occupancy at the development, use of the Shallow Rent Subsidy Program has not been necessary. Study Session Meeting of August 27, 2012 (Item No. 7) Subject: 2012 Semi-Annual Housing Programs Report Page 13 Housing Activity Report, June 30, 2012 13 5. ST. LOUIS PARK HOUSING AUTHORITY UPDATE The Housing Authority administers programs that ensure the availability of safe and desirable housing options in the St. Louis Park community. These programs include the Public Housing program, Section 8 Housing Choice Voucher rental assistance program, Shelter Plus Care rental assistance program, Louisiana Court Max 200 Rental Assistance Program, and TRAILS family self-sufficiency program. The Authority currently serves over 500 eligible, low-income households through their housing programs. Public Housing The HA owns a low-rise apartment building (108 one-bedroom units and 2 two-bedroom caretaker units) built in 1975, and 37 scattered site single-family units (3 to 5 bedrooms) acquired and constructed between 1974 and 1996. Although the low-rise building is designated for general occupancy, priority is given to elderly and disabled. The single-family scattered units house families with children. The HA also holds the HUD Annual Contributions Contract (ACC) and maintains a waiting list for 12 two-bedroom Public Housing apartment units located at Louisiana Court. These units are owned and managed by Project for Pride in Living. The units and occupancy rates for the Public Housing units are noted in the table. Public Housing Total Units 1-BR 2-BR 3-BR 4-BR 5-BR Occupancy June 30, 2012 Hamilton House 108 108 100% Scattered Site Single Family 37 0 0 17 17 3 99% Louisiana Court, Metropolitan Housing Opportunity (MHOP) Units 12 12 99% Total (bedroom size) 108 12 17 17 3 Total 157 Section 8 Housing Choice Voucher Program The HA is funded to administer up to 268 Section 8 Housing Choice Vouchers. The rent assistance program provides rent subsidies for low-income individuals and families in privately owned, existing market rate housing units. The rent subsidy is paid directly to the owner of the rental property by the HA with funds provided by HUD. The HA offers both tenant-based and project-based vouchers. Forty vouchers of the HA’s allocation are designated for use in three privately owned developments (Excelsior & Grand, Vail Place and Wayside) and are referred to as project-based vouchers. Shelter Plus Care The Shelter Plus Care Program is designed to link rental assistance with supportive services for hard-to-reach homeless persons with disabilities (primarily those who are seriously mentally ill or have chronic problems with alcohol, drugs or both) and their families. Grants are provided to be used for permanent housing which must be matched with supportive services that are equal in value to the amount of rental assistance and appropriate to the needs of population to be served. Study Session Meeting of August 27, 2012 (Item No. 7) Subject: 2012 Semi-Annual Housing Programs Report Page 14 Housing Activity Report, June 30, 2012 14 St. Louis Park is the grant recipient and we partner with three sponsor organizations that administer supportive housing programs. * Beginning in 2012, CIP and Perspective grants provide funding for up to five units of Shelter Plus Care Rental Assistance at Wayside House. Wayside House’s Project Based units were decreased by five units to fifteen. Section 8 Housing Choice Vouchers (HUD Approved) Units Utilization YTD June 30, 2012 Tenant-Based (49 are Port-Outs) 219 100% Tenant-Based Port - Ins 44 Avg./month Project-Based: 37 Wayside House 12 80% Excelsior & Grand 18 100% Vail Place 7 100% Shelter Plus Care Rental Assistance: 40 Perspectives Inc. 11 100% Community Involvement Program (CIP) – Scattered Site Homes 8 92% CIP- Clear Spring Road 8 96% Project for Pride In Living (PPL) 8 98% *Wayside House 5 80% Total 377 Waiting Lists Assisted Housing Waiting List as of June 30, 2012 Public Housing 1-BR 1-BR Handicap 2-BR 3-BR 3-BR Handicap 4-BR 5-BR Total 985 86 329 293 7 13 14 1727 Section 8 473 Excelsior & Grand 79 MAX 200 80 Study Session Meeting of August 27, 2012 (Item No. 7) Subject: 2012 Semi-Annual Housing Programs Report Page 15 Housing Activity Report, June 30, 2012 15 6. PROGRAM DESCRIPTIONS Technical, Design and Conservation Services Architectural Design Service Description This service provides an architectural consultation for residents to assist with brainstorming remodeling possibilities and to raise the awareness of design possibilities for expansions. Residents select an approved architect from a pool developed in conjunction with the MN Chapter of the American Institute of Architects. All homeowners considering renovations are eligible for this service regardless of income, however to ensure committed participants, residents make a $25 co-pay. Remodeling/Rehab Advisor The intention of this service is to help residents improve their homes (either maintenance or value added improvements) by providing technical help before and during the construction process. All homeowners are eligible for this service regardless of income. Resident surveys indicated that homeowners valued the service and would recommend it to others. The City contracts with the Center for Energy and Environment (CEE) for this service. CES Home Energy Service Home Visit CES is a comprehensive one-stop residential energy program designed to help residents save energy. It moves beyond the traditional energy audit to include free neighborhood presentations on how to save energy and money and offers a customized home energy visit. Unlike a typical utility energy audit, the home visit includes installation of energy efficient: compact fluorescent light bulbs, programmable thermostats, faucet aerators, high efficiency showerheads, pipe wrap, water heater blankets, weather-stripping and more. Residents can opt for diagnostic services that include a blower door test to measure air infiltration into the home and a gas appliances combustion safety test. The analysis report provides residents with three actionable, practical steps they can take to reduce their home energy use. The service also provides information about recommended contractors, 0% interest energy loans, and assistance in securing utility and city rebates. The program began in March, 2012, is administered by the Center for Energy and Environment (CEE). The city pays $60 per resident visit which is leveraged with funds from Xcel Energy, Center Point Energy and CEE. After the pilot year, 2012, an evaluation will be conducted to determine if the program continues. Annual Home Remodeling Fair The cities and community education departments of St. Louis Park, Hopkins, Minnetonka and Golden Valley co-sponsor the fair. The fair provides residents an opportunity to attend seminars, talk with vendors and city staff about permits, zoning, home improvement loans, and environmental issues related to remodeling. The fair is a self-sustaining event and vendor registration fees cover the costs. Study Session Meeting of August 27, 2012 (Item No. 7) Subject: 2012 Semi-Annual Housing Programs Report Page 16 Housing Activity Report, June 30, 2012 16 Home Remodeling Tour The annual tour is designed to meet the housing goal to remodel and expand single family owner occupied homes. The self-guided tour of six homes provides a showcase of a variety of home remodeling projects to provide ideas, information and inspiration to other residents considering remodeling. Financial Programs Discount Loan Program This program encourages residents to improve their homes by “discounting” the interest rate on the Minnesota Housing Finance Agency (MN Housing) home improvement loans. Residents with incomes of $67,200 or less qualify for a greater discount than those with incomes of $96,500 or less. Eligible improvements include most home improvement projects with the exception of luxury items such as pools and spas. The City contracts with CEE for loan administration. Implementation of discounting of MHFA loans began in late 1999 as a pilot project. Successful marketing efforts have led the City to be third among all Minnesota cities to use the MHFA loans, only exceeded by Minneapolis and St. Paul. Move – Up Transformation Loan The purpose of this loan is to encourage residents with incomes at or below 120% of median area income ($100,700 for a family of four) to expand their homes. The program provides deferred loans for 25% of the applicant’s home expansion project cost, with a maximum loan of $25,000. The revolving loan pool which will continue to fund future expansions; four loans have been repaid when residents moved, for a total of approximately $120,000. This loan requires significant upfront work by the residents, from deciding on the scope of the project to selecting contractors. Loan guidelines are: • Only residents making significant expansions are eligible. The minimum project cost must exceed $35,000. • The maximum loan amount is $25,000. • The loan has 0% interest with a carrying cost fee of 3% paid by the borrower which covers the lender’s administrative fee. Green Remodeling Program & Energy Rebates Revisions to the Green Remodeling Program included implementation of the Community Energy Services program, use of energy rebates, and access to CEE’s Home Energy Loan. The city provides a match of 50% of gas and electric utility rebates for energy efficient furnaces, water heaters and air conditioners. In 2012 rebates were expanded to include qualifying air sealing and insulation. The use of rebate incentives is slowing in 2012. The average rebate was $184, for a total City cost of $4,042. In 2012, CEE provided 2 0% interest loans to residents making qualifying energy improvements. Study Session Meeting of August 27, 2012 (Item No. 7) Subject: 2012 Semi-Annual Housing Programs Report Page 17 St. Louis Park Housing Types, Numbers and Percentages HOUSING MATRIX June 30, 2012 Housing Type Net Units added 1/1/12- 6/30/2012 # Units % Units # Units Single Family Detached 11,613 49%1 Duplex 424 2%0 Condos and townhomes*3429 15% 22 Apartments 7959 34% 412 COOPs 121 1%0 Total 23,546 100% 435 13,458 57% 10088 43% 2,010 9% 3,876 16% 4185 18% 1133 5% 1029 4% ** Reported Affordable Market Rate Rental Units - based on 2011 SLPHA Rental Study with responses representing 96% of the mf units and 87% of the mf buildings Data source: SLP Community Development, Development Activity in St. Louis Park, SLP Inspections and Assessing. 2,030 2 1,844 Large Family Homes, Affordable and Senior Housing 0 Large Family Home - 1,500 sq ft., 3+Bedrooms, 2+ Bath & 2+ Car Garage # 2,010 Housing Units Public Subsidized Affordable Units, Includes Section 8 Housing Units Owner Occupied (Homestead) Non Home- steaded and/or Rental ## 2011 Affordable Market Rate Units Owner Occupied 950 278 901 7959 Senior Designated 2011 Reported Affordable Market Rate Rental Units ** # 0 0 0167 3,909 0 53 56 Housing Production by Type ## 1036 # 5510,663 146 2528 0 In 2011 the Met Council revised the affordable housing income standard. Rather than using 50% MAI for rental, and the 80% MAI for ownership, the new affordable definition is that housing is affordable to households with incomes at or below 60% MAI ($50,350 family of four) paying thirty percent of their income for housing costs whether renting or owning. The 2012 affordable purchase price is $171,500 or less and the a monthly rent of $1,1134, or less for a 2 bedroom apartment for a family of four is considered affordable. The percentage of owner occupied (homesteaded) units to rental or non owner occupied (non- homestead) units has shifted from the 60 homesteaded/40 non- homesteaded ratio of the early 2000's. This is due in part to a change in homestead status of approx. 1,200 units since early 2000's and addition of new mf rental units. *Total condo/townhome units adjusted per Assessing data. 42121 923 1060 08/22/2012 Study Session Meeting of August 27, 2012 (Item No. 7) Subject: 2012 Semi-Annual Housing Programs Report Page 18 Meeting Date: August 27, 2012 Agenda Item #: 8 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: Business Park Rezoning Process Update RECOMMENDED ACTION: None. POLICY CONSIDERATION: Does the City Council have any questions or concerns about the proposed process for consideration of rezoning parcels into the new Business Park Zoning District? BACKGROUND: The City Council adopted the new Business Park Zoning District in April, 2012, and the ordinance went into effect in June. During the ordinance discussion, the City Council directed Staff to develop a process for rezoning parcels into the new Zoning District. That process will begin with meetings between business and property owners and Staff to explain the new Zoning District; two larger open-house meetings have been scheduled for mid-September. Business Park Zoning Summary The Business Park Zoning District is based on the recommendations of the 2030 Comprehensive Plan. The intent statements from the Comprehensive Plan regarding the new district are: • Encouraging the creation of significant employment centers that accommodate a diverse mix of office and light industrial uses and jobs. • Application of the category for larger sites that can be redeveloped to provide: § A greater diversity of jobs § Higher development densities and jobs per acre § Higher quality site and building architectural design § Increased tax revenues for the community • Appropriate uses may include office, office showroom-warehousing, research and development services, light and high-tech electronic manufacturing and assembly, and medical laboratories. • Some retail and service uses may be allowed as supporting uses for the primary office and light industrial uses of the employment center. The district is something of a hybrid between the Industrial Park and Office districts, as it would allow for some light assembly and manufacturing, but has a greater emphasis on office and medical office types of uses. A summary table of uses is included as an attachment. Communication Process In the 2030 Comprehensive Plan Land Use Map, there are 57 properties guided for future Business Park use. Between those parcels, there are 41 separate owners; because of the important role the Zoning Ordinance plays in the use of any individual parcel, communication Study Session Meeting of August 27, 2012 (Item No. 8) Page 2 Subject: Business Park Rezoning Process Update with each property owner is important through the rezoning process. Two open house meetings with property owners / businesses have been scheduled: • Tuesday, September 11, 10:00 AM to 11:30 AM • Wednesday, September 12, 4:00 PM to 5:30 PM The property owners will receive two notifications about the meetings, and follow up will be completed with any owners who do not attend or otherwise contact Staff. Beyond the property owners, invitations to the open houses will also be extended to the neighborhood leaders for all neighborhoods located near the parcels under consideration for rezoning. Neighborhoods to be included are Triangle, Wolfe Park, Minikahda Oaks, Elmwood, South Oak Hill, Meadowbrook, and Brooklawns. A map is included depicting the neighborhoods. Following the open house meetings, the rezoning issue will be brought before the City Council at a study session for discussion and a final update before scheduling a public hearing at the Planning Commission. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not directly applicable. Attachments: Summary Table – Business Park Uses Overview Maps - Business Park Locations Map of Business Park Adjacent Neighborhoods Prepared by: Adam Fulton, Planner Reviewed by: Kevin Locke, Community Development Director Approved by: Nancy Deno, Deputy City Manager/HR Director Study Session Meeting of August 27, 2012 (Item No. 8) Page 3 Subject: Business Park Rezoning Process Update Summary Table – Business Park compared to Office and Industrial Park Performance Standard / Use Business Park Office Industrial Park Outdoor storage Prohibited Prohibited Accessory Use Hours of operation Limited when adjacent to residential No restrictions Permit needed for overnight use when adjacent to residential Offices Permitted Permitted Conditional Use Permit Banks / Medical Offices Permitted Permitted Not permitted Restaurants / Retail / Service Permitted if < 25% of building Permitted Permitted only in a Planned Unit Development Light manufacturing Conditional Use Permit Not permitted Permitted Heavy manufacturing Not permitted Not permitted Permitted Warehouse / Storage Permitted if < 50% of the building Not permitted Permitted Large item retail (i.e., furniture) Permitted if < 15% of the building Not permitted Permitted if < 15% of the building Planned Unit Developments Only jobs oriented Unrestricted Only retail / service Setbacks when adjacent to residential 30 feet or building height Half of building height 35 feet or use of a formula Maximum building height 110 feet / 55 feet if adjacent to single family residential 240 feet 75 feet Maximum floor area ratio 2.0 1.5 0.5 HIGHWAY 7FRANCE35THHIGHWAY 100B E L T L I N E PARK GLEN 36TH 37TH 36 1/2 31ST UTICASALEMEXCELSIORSERVICE DR HI G H W A Y 7 RALEIGHM O N T E R E Y GLENHURSTKIPLING34THJOPPA PARK CENTEROTTAWARANDALLTOLEDO33RDNATCHEZLYNN HUNTINGTONINGLEWOODNB HWY100 S TO CORD25QUENTINMINIKAHDANB HWY100 S TO 36TH ST WPRIVATEHIGHWAY 7SERVICE DR HIGHW A Y 7 INGLEWOODGLENHURSTJOPPASALEM31ST HUNTINGTON31ST 36TH N A T C H E Z RALEIGHHIGHWAY 7LYNNComprehensive Plan Land Use Map: Business Park AreasBeltline LRT Station Area City of St. Louis Park 2030 Comprehensive PlanPrinted August 22nd, 2012 Legend RL - Low Density Residential RM - Medium Density Residential RH - High Density Residential MX - Mixed Use COM - Commercial IND - Industrial OFC - Office BP - Business Park CIV - Civic PRK - Park and Open Space ROW - Right of Way RRR - Railroad 1,000 Feet Study Session Meeting of August 27, 2012 (Item No. 8) Subject: Business Park Rezoning Process Update Page 4 W O O D D A L EHIGHWAY 7 35TH OXFORD37TH GOODRICH HAMILTON HIGHWAY 100SERVICE DR HIGHWAY 7ALABAMAWALKER 36THXENWOOD PRIVATE COLORADOCAMERATA YOSEMITEZARTHANPARK CENTERBRUNSWICK WEBSTERMEDLEYSB HWY100 S TO WOODDALE AVE S WEBSTERWALKERBRUNSWICKALABAMA35TH PRIVATEYOSEMITEHIGHWAY 7HIGHWAY 100ZARTHANBRUNSWICKComprehensive Plan Land Use Map: Business Park AreasWooddale LRT Station Area City of St. Louis Park 2030 Comprehensive PlanPrinted August 22nd, 2012 Legend RL - Low Density Residential RM - Medium Density Residential RH - High Density Residential MX - Mixed Use COM - Commercial IND - Industrial OFC - Office BP - Business Park CIV - Civic PRK - Park and Open Space ROW - Right of Way RRR - Railroad 600 Feet Study Session Meeting of August 27, 2012 (Item No. 8) Subject: Business Park Rezoning Process Update Page 5 LAKEOXFORDWALKER HIGHWAY 7 37TH LOUIS IANA NORTHT A F TPENNSYLVANIA EDGEBROOKMO N I T O R EDGEWOODOREGONHOSPITAL SERVICE SERVICE DR HIGHWAY 7 CAMBRIDGE HIGHWAY 7 LAKESERVICE DR HIGHWAY 7 Comprehensive Plan Land Use Map: Business Park AreasLouisiana LRT Station Area City of St. Louis Park 2030 Comprehensive PlanPrinted August 22nd, 2012 Legend RL - Low Density Residential RM - Medium Density Residential RH - High Density Residential MX - Mixed Use COM - Commercial IND - Industrial OFC - Office BP - Business Park CIV - Civic PRK - Park and Open Space ROW - Right of Way RRR - Railroad 740 Feet Study Session Meeting of August 27, 2012 (Item No. 8) Subject: Business Park Rezoning Process Update Page 6 Lenox Wolfe Park Elmwood Sorensen Fern Hill Triangle Oak Hill Minikahda VistaBrooklawns Meadowbrook Bronx Park Creekside South Oak Hill Birchwood Brookside Browndale Texa Tonka Minikahda Oaks Comprehensive Plan Land Use Map: NeighborhoodsNeighborhoods nearby Business Park areas City of St. Louis Park 2030 Comprehensive PlanPrinted August 22nd, 2012 Legend RL - Low Density Residential RM - Medium Density Residential RH - High Density Residential MX - Mixed Use COM - Commercial IND - Industrial OFC - Office BP - Business Park CIV - Civic PRK - Park and Open Space ROW - Right of Way RRR - Railroad 2,400 Feet Study Session Meeting of August 27, 2012 (Item No. 8) Subject: Business Park Rezoning Process Update Page 7 Meeting Date: August 27, 2012 Agenda Item #: 9 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: Prism Dial-A-Ride Program Update RECOMMENDED ACTION: No action at this time. The purpose of this report is to provide the Council with an update on the status on the ridership services provided by the Prism door-to-door Dial-a-Ride Program available to all residents in St. Louis Park. The program was first implemented in September 2011. The current contract expires December 31, 2012. POLICY CONSIDERATION: The City entered into an initial six month contract with Prism on September 1, 2011 to provide Dial-a-Ride transportation services to St. Louis Park residents. Previous to entering into this contract, St. Louis Park was served by several transportation programs, each operating independently and with various limitations. At the February 6 Council meeting, the Council reviewed the ridership usage of the Dial-a-Ride program for the initial six months and extended the contract through the end 2012. A review of ridership activity and a determination regarding renewal of the contract to provide services in 2013 will be presented for Council’s consideration at a meeting prior to the end of the year. BACKGROUND: City s taff and Courtney Whited, Prism Transportation Coordinator, met with the Council in July 2011 to discuss Prism’s proposed plan to expand their door-to-door Dial-a-Ride program to St. Louis Park. Council supported the proposal and the potential benefits that a flexible transportation program would provide and directed staff to proceed with the steps necessary to enter into a contract with Prism to provide Dial-a-Ride services to St. Louis Park residents. The City agreed to provide a funding contribution up to $10,000 to cover program operation costs for the initial six month period of September 1, 2011 through February 29, 2012. The contract was subsequently extended through the end of 2012. The 2012 City budget includes $20,000 in funding to cover the City’s financial contribution supporting the program. Ridership Statistics: January through June 2012. Marketing efforts have included articles in the Sun Sailor, the Park Perspective and announcements on the City’s web site. Prism staff also did direct outreach to the Lennox Senior Center, Park Nicollet, STEP, and the faith community. Ridership for the first six months of 2012 is as follows: Month Rides Provided January 152 February 159 March 144 April 133 May 174 June 113 Total 875 Study Session Meeting of August 27, 2012 (Item No. 9) Page 2 Subject: Prism Dial-A-Ride Program Update A total of 34 individuals utilized the Dial-a-Ride services for a total of 875 rides through the first 6 months of 2012. Prism indicated that an additional 28 individuals are registered with the Dial- a-Ride program but have not used the service during the 6 month time period. Rider characteristics are as follows: Rider Characteristics Number of Riders Female 22 Male 12 Under 60 6 60 to 64 2 65 to 69 3 70 to 74 4 75 to 79 1 Over 80 18 White 32 Black 1 Asian 1 Ambulatory 21 Use Cane 4 Use Walker 1 Need Lift 8 Prism has indicated that the majority of the riders are seniors that are seeking a more attentive service than what they would receive from an alternate transportation service. The door-to-door Dial-a-Ride service is more direct than many services and provides the rider the feel of running an errand. A ride to and from the store only takes 15 to 25 minutes each way versus 1 – 2 hours on Metro Mobility or the bus. The service is more similar to taxi cab service. The most frequent ride destination thus far has been to adult day care. Other destinations included medical appointments, work, shopping and social service appointments. Ride Destination Rides Provided Medical 158 Adult Day Care 559 Shopping 34 Work 42 Social Service 6 Recreation 74 Visiting 2 Although Prism has indicated that typically ridership will continue to grow each month as more residents hear about the service, the ridership thus far in St. Louis Park has remained relatively constant. Prism has done a significant amount of outreach and will be undertaking renewed marketing efforts in the next month. Study Session Meeting of August 27, 2012 (Item No. 9) Page 3 Subject: Prism Dial-A-Ride Program Update BUDGET STATUS: The City’s 2012 budget includes up to $20,000 in funding for a Dial-a-Ride program. PRISM Express estimates that the full cost of a one way ride is $11.50. PRISM bills the City monthly on a per ride basis. The City currently reimburses PRISM at a rate of $5.50 per one way ride. The additional ride expense is supplemented by contributions from a $5000 grant from the Park Nicollet Foundation and the $3 fare charged to riders. The Housing Rehab Fund is the funding resource for the City’s contribution. The estimated amount of the City’s contribution was determined based on community size and the anticipated number of riders annually. The City’s contribution for services provided from January through June totaled $4,812.50. As of September 1st, Prism will be adjusting the Dial-a-Ride fare structure for riders 60 and over to a sliding fee scale based on household income. Prism’s primary funding resource, the Metropolitan Area Agency on Aging (MAAA), requires their funds to be used only for riders 60 years of age or older. MAAA contributes approximately $5.80 per ride for riders 60 years of age and older. The scale is based on a household’s income as it relates to the federal poverty guidelines and the rider fee scale will range from $3.50 per one way ride to a full fare of $11.50. The fee is a suggested donation and riders are not turned away if they do not pay the fee. VISION CONSIDERATION: The need for a variety of transportation modes allowing residents and visitors to easily and inexpensively travel throughout the city and the entire metro region was identified through the Visioning process as one of the City’s primary focus areas. Creation of a dial-a-ride program that expands ridership boundaries is consistent with many of the ideas and goals proposed by the Visioning Transportation Action Team including: • Creating a superior transportation system, • Alleviate barriers, • Transportation system should strive to be simple, convenient, safe and inexpensive for everyone, • All the transportation system components and modes should be integrated and designed to support one another, • Embrace existing and future technology to make transportation more convenient and cost effective, • Our transportation system is an innovative model for other communities, and • Coordinate with neighboring cities’ transit efforts. NEXT STEPS Staff will continue to review the program’s performance through the initial year of operation and provide an update to the Council and a recommendation regarding continued funding prior to the end of the contract term. Attachments: None Prepared by: Michele Schnitker, Housing Supervisor Reviewed by: Kevin Locke, Community Development Director Approved by: Nancy Deno, Deputy City Manager/HR Director Meeting Date: August 27, 2012 Agenda Item #: 10 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: July 2012 Monthly Financial Report RECOMMENDED ACTION: No action required at this time. POLICY CONSIDERATION: None at this time. BACKGROUND: This report is designed to provide summary information each month of the overall level of revenues and expenditures in both the General Fund and the Park and Recreation Fund. These funds should be a primary concern in analyzing the City’s financial health because they represent the discretionary use of tax levy dollars. Actual expenditures should generally run about 58% of the annual budget in July. Currently, the General Fund has expenditures totaling 54.1% of the adopted budget and the Park and Recreation Fund expenditures are at 61.3%. Revenues tend to be harder to gauge in this same way due to the timing of when they are received, examples of which include property taxes and State aid payments (Police & Fire, DOT/Highway, PERA Aid, etc.). Most departments continue to be running at or below budget through July. Comments on a few revenue and expenditure variances are noted below. General Fund Revenues: • License and permit revenues in the General Fund have been running well ahead of budget all year. They are at 97.5% through July and will exceed 100% in August. This additional revenue is due to several large commercial development projects that have started in 2012, which were not determined at the time the budget was prepared last summer. Expenditures: • The Community Outreach budget remains at 71% because the full 2012 payment for Mediation Services was made early in the year. This expenditure is a substantial portion of the Community Outreach General Fund budget. Parks and Recreation Expenditures: • The Organized Recreation Division is at 67.5% of budget because the full annual Community Education contribution in the amount of $187,400 has been paid to the School District. The timing of this large expenditure is consistent with prior years and is only a temporary variance. Also, some costs in this Division are seasonal, with larger expenses occurring for recreational activities over the summer months. Study Session Meeting of August 27, 2012 (Item No. 10) Page 2 Subject: July 2012 Monthly Financial Report • The Recreation Center Division is at 62% because a large portion of the supplies budget is spent over the summer months on pool supplies and concessions. This is only a temporary variance. • Expenditures in the Vehicle Maintenance Division are exceeding budget at 63.4%. The variance is mainly due to parts and tires, motor fuel, and outside repair services, all of which are unpredictable and difficult to budget. Staff will continue to monitor these expenditures closely as the year progresses. FINANCIAL OR BUDGET CONSIDERATION: None at this time. VISION CONSIDERATION: Regular and timely reporting of financial information is part of the City’s mission of being stewards of financial resources. Attachments: Summary of Revenues & Expenditures Prepared by: Darla Monson, Senior Accountant Reviewed by: Brian Swanson, Controller Approved by: Nancy Deno, Deputy City Manager/HR Director !" #$#% &’(" )*’%+( , -.(- %& &("/’0 1*& " !" !" &’(" )*’%+( , -.(- 1*& " !" #$% !" $&’ Study Session Meeting of August 27, 2012 (Item No. 10) Subject: July 2012 Monthly Financial Report Page 3 2!" 2 -’ 2’ 3-".- )""-4(" # , &%".- )""- $,5’ )""-1- * (#$ # & +( (#$ ()! -6 752!" -6 75/’’ -6 751 ()! *%+ 0 89 %1-0 0 0 )-0 0 *%+ ,-+ !" 1’:!. . ) 5, 7;! /(" <* , !",-+ #$,-+% !" $&’ Study Session Meeting of August 27, 2012 (Item No. 10) Subject: July 2012 Monthly Financial Report Page 4