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HomeMy WebLinkAbout2010/01/25 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA JANUARY 25, 2010 3:30 p.m. Round About Tour – Bus loads at City Hall 0. Roundabout Bus Tour Box lunches available in Westwood Room after tour for City Council Members attending Round About Tour 6:30 p.m. CITY COUNCIL STUDY SESSION – Council Chambers Discussion Items 1. 6:30 p.m. Future Study Session Agenda Planning – February 1 and February 8, 2010 2. 6:35 p.m. Telecommunications Advisory Commission Follow-Up Regarding Wi- MAX Services 3. 7:20 p.m. Draft Ordinance - Wind Energy Conversion System (WECS) (with Consultant) 4. 7:50 p.m. 2010 Utility Rate Study Discussion Continuation 5. 8:50 p.m. Planning Commission Annual Report and 2010 Work Plan 6. 8:55 p.m. Communications (Verbal) Written Reports 7. November - December, 2009 Monthly Financial Reports 8. Fourth Quarter Investment Report (October – December, 2009) 9. 2010 Grant Year Community Development Block Grant (CDBG) Funds – Proposed Allocation 10. Redevelopment Project & EDA Contract Status Report: 4th Quarter 2009 11. Operation Mayday Overview 9:00 p.m. Adjourn 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. 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: January 25, 2010 Agenda Item #: 0 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: Tour TITLE: Roundabout Bus Tour. RECOMMENDED ACTION: No action is required. Council and staff will be participating in a bus tour visiting intersections with modern roundabouts in the communities of Eagan and Cottage Grove. POLICY CONSIDERATION: This tour will not only provide for driving / touring two roundabouts, but will also allow Council an opportunity to ask questions and obtain information (from Council representatives) regarding operations, concerns, and public acceptance of roundabouts. BACKGROUND: Council and staff have been investigating the use of modern roundabouts for the Highway 7 and Louisiana Avenue Interchange Project and a tour was scheduled to visually see designs that are under consideration. Council and staff will be utilizing a 24 passenger Mini Motor Coach that will arrive at City Hall at 3:15 p.m. and depart at 3:30 p.m. sharp, returning to City Hall at approximately 6:00 p.m. prior to the start of the 6:30 p.m. scheduled Study Session. For Council members participating in the tour, a box lunch will be available upon their return to City Hall in the Westwood Room. Schedule 3:30 p.m. Leave St. Louis Park City Hall - 40 minute travel to Cottage Grove 4:10 p.m. TH 61/Jamaica Roundabout Tour with Cottage Grove City Administrator – Ryan Schroeder (20 min.) 4:30 p.m. Leave Cottage Grove - 35 minute travel to Eagan 5:05 p.m. Diffley/Rahn Roundabout Tour with Eagan Representative (TBD) (20 min.) 5:25 p.m. Leave Eagan - 30 minute travel back to City Hall 5:55 p.m. Arrive at St. Louis Park City Hall FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: None. Attachment: None Prepared by: Lisa Songle, Office Assistant Reviewed by: Jim Olson, Senior Engineering Project Manager Mike Rardin, Public Works Director Approved by: Tom Harmening, City Manager Meeting Date: January 25, 2010 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 – February 1 and February 8, 2010. RECOMMENDED ACTION: Council and the City Manager to set the agenda for a special study session on February 1 and the regularly scheduled study session on February 8, 2010. 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 special study session on February 1, 2010 and the regularly scheduled study session on February 8, 2010. FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: None. Attachment: Future Study Session Agenda Planning for February 1 and 8, 2010 Prepared by: Lisa Songle, Office Assistant Approved by: Tom Harmening, City Manager Meeting of January 25, 2010 (Item No. 1) Page 2 Future Study Session Agenda Planning Tentative Discussion Items Special Study Session, Monday, February 1, 2010 – 6:30 p.m. 1. Green Building Policy – Community Development (30 minutes) Staff will present a draft policy that was developed which incorporates green technologies, specifications and requirements for future building construction. 2. Finalize City Council Workshop Agenda – Administrative Services (15 minutes) Staff and the City Council to finalize the agenda for the City Council workshop being held on February 19 and 20. End of Meeting: 7:15 p.m. Study Session, Monday, February 8, 2010 – 6:30 p.m. 1. Future Study Session Agenda Planning – Administrative Services (5 minutes) 2. MSC Soil Removal Options – Inspections and Parks & Recreation (45 minutes) Staff, along with Consultant AECOM, will discuss possible sites for moving soil from the Municipal Service Center (MSC). Options include exporting all or a portion of the soil to a landfill, with an option for some of the excess soil to be used for fill in the southwest corner of Louisiana Oaks Park. 3. Board and Commission Policies – Administrative Services (30 minutes) In the past the Council has expressed an interest in exploring policy related matters relative to membership on the City’s boards and commissions. These have included minimum length of residency requirements for prospective commissioners and commission members providing consulting services to the City. 4. Parks & Recreation Advisory Commission 2009 Annual Report and 2010 Work Plan – Administrative Services (10 minutes) The City Council will be asked to review the Parks & Recreation Advisory Commission’s work plan and annual report. If so desired by the City Council, on February 22, 2010, the Commissioners and staff liaisons will discuss the Annual Report and Work Plan with Council. Council will be asked to provide feedback to the Commissioners. 5. Police Advisory Commission 2009 Annual Report and 2010 Work Plan – Administrative Services (10 minutes) The City Council will be asked to review the Police Advisory Commission’s work plan and annual report. If so desired by the City Council, on February 22, 2010, the Commissioners and staff liaisons will discuss the Annual Report and Work Plan with Council. Council will be asked to provide feedback to the Commissioners. Meeting of January 25, 2010 (Item No. 1) Page 3 6. Board of Zoning Appeals (BOZA) 2009 Annual Report and 2010 Work Plan – Administrative Services (10 minutes) The City Council will be asked to review the Board of Zoning Appeal’s work plan and annual report. If so desired by the City Council, on February 22, 2010, the Commissioners and staff liaisons will discuss the Annual Report and Work Plan with Council. Council will be asked to provide feedback to the Commissioners. 7. Communications – Administrative Services (10 minutes) Time for communications between staff and Council will be set aside on every study session for the purposes of information sharing. Reports: ƒ Solid Waste Program Survey Results – Public Works ƒ MSC Renovation Project Update End of Meeting: 8:10 p.m. Meeting Date: January 25, 2010 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: Telecommunications Advisory Commission Follow-Up Regarding Wi-MAX Services. RECOMMENDED ACTION: No formal action is requested. The information provided in this report is a follow-up to the Telecommunications Advisory Commission (TAC) 2009 Annual Report provided at the January 11 Council meeting. Council requested that staff and the TAC attend a future meeting to learn more about, and address the status of, LocaLoop MAX and Clearwire. Both LocaLoop MAX and Clearwire are planning to provide Wi-MAX service in St. Louis Park. This also serves as a follow-up to the September 29 study session and October 26, 2009 meeting with LocaLoop MAX, at which time Council directed staff to pursue an agreement with LocaLoop MAX for the leasing of fiber capacity in a manner that is fair to both the City of St. Louis Park and to future potential lessees of fiber capacity. Such an agreement would also incorporate considerations of water tower leasing and fiber infrastructure that LocaLoop is proposing to build and turn over to the City of St. Louis Park. This report serves as both a refresher to the October 26 report and an opportunity for new Council members to learn about the LocaLoop MAX opportunity. While no formal action is requested at this meeting, staff is requesting direction from Council on its comfort level with the status of LocaLoop MAX agreement points. Based on that direction, it is possible that related agreements could be presented to Council for formal consideration as soon as February. Finally, information requested by Council on Federal stimulus monies related to broadband in Minnesota is also included in this report. POLICY CONSIDERATION: • Based on updates provided in this report and the meeting, does Council wish staff to continue to pursue an agreement with LocaLoop MAX as directed on October 26? An agreement with LocalLoop would include the leasing of fiber capacity in a manner that is fair to both the City of St. Louis Park and to future potential lessees of fiber capacity. Such an agreement would also incorporate reference to a standard water tower leasing (in the form of another agreement). The agreement would include fiber infrastructure that LocaLoop is proposing to build, pay for, and convey ownership of, to the City of St. Louis Park. As part of this, LocaLoop is also proposing to pay for $6,000 of legal, technical, and other consulting costs associated with this project. The project includes the potential use of the Wi-MAX service to support City services. Meeting of January 25, 2010 (Item No. 2) Page 2 With respect to this policy question, it is important to have Council direction so appropriate and timely steps can be taken by the City and LocaLoop MAX. BACKGROUND: This issue was first considered by Council at its September 29 study session. Since September 29, staff has solicited input from the Telecommunications Advisory Commission (TAC), at its October 8 meeting. At that meeting, the TAC provided positive support for moving ahead with respect to the policy question noted above (see attached minutes). TAC also considered other policy questions. In addition, staff received further direction from Council at its October 26 study session. As noted on September 29, as the wi-fi project was coming to a conclusion in 2008, Council requested that staff prepare some policy points around both the potential use of existing City-owned fiber optic capacity and related ordinances requiring installation of fiber capabilities in construction. Now that the wi-fi project clean-up has ended, it seemed like the right time to start addressing these questions. The jointly owned fiber network was installed beginning in 1997 following collaborative planning by the City, the School District, and LOGIS in the early 1990’s. Major segments of the network were completed in 1998 by the School District and in 2005 by the City and LOGIS. Incremental additions were made to connect certain sites, plus an additional 8 miles received as part of the wi-fi project legal settlement. The existing fiber network includes about 26 miles of infrastructure. Different network segments have different capacities (number of fiber strands), and some network segments have conduit only without fiber strands. These “conduit only” segments were generally installed during road construction projects (by practice, not policy). The idea would be to add fiber strands with appropriate capacities to match future service needs, but only when those service needs are known. Installation of fiber conduit when a road is under construction is relatively inexpensive. The City and School District are meeting many high speed Internet bandwidth needs (voice, data, and radio) now and the City’s payback for its original fiber investment is approximately 8 years for an asset that should last 20 or more years. Other City / School needs remain (e.g., use of fiber for video) while some future uses cannot be anticipated. However, industry-wide, fiber is projected to have a real future based on its demonstrated performance. We need to and will reserve fiber capacity for these needs as well as spare strands. One question that arises is what to do with the remaining capacity. LONG-TERM STUDY TOPICS: Over time, the City Council and Telecommunications Advisory Commission have asked about the future use of the existing and growing fiber optic network. In addition, questions have been raised about whether the City should consider playing any role in requiring or incentivizing property owners to install some portion of fiber optic capabilities during new construction or major remodeling. There are several potential longer-term study questions surrounding the fiber optic network whose owners include the City of St. Louis Park, St. Louis Park ISD #283, and Local Government Information Systems (LOGIS). Meeting of January 25, 2010 (Item No. 2) Page 3 Council provided direction to staff to pursue a study of such long-term topics. A study will be undertaken in 2010 with the leadership of the TAC and is estimated to cost no more than $25,000. The approved 2010 Cable TV Fund budget includes this funding. SHORT-TERM OPPORTUNITY: Staff has been approached by several firms, and received a more concrete request from one firm, LocaLoop MAX. LocaLoop MAX is a new St. Louis Park-based firm that is interested in providing Wi-MAX wireless service in St. Louis Park. Information on LocaLoop MAX’s project plan is attached. Here are some highlights of this firm’s plans: • LocaLoop plans to install a Wi-MAX network that covers the entire City. They intend to market this service on a retail basis and it would provide wireless Internet service. • LocaLoop may wish to pilot its service. Most of its pilot users would be residential. Eventually, they would like to incorporate a few City staff pilot users for their mobile Wi- MAX service. • LocaLoop claims its pilot project will lead to a full-blown citywide service. In fact, they indicate current plans call for early installation of some equipment to eventually provide that citywide service. In summary, the short-term opportunity Council gave direction to pursue on October 26 is the mechanics of leasing capacity (fiber strands) within its fiber optic network in a way that (1) preserves capacity for current and future City needs and (2) provides fair access, based on limited capacity, to other potential lessees of fiber capacity. This short-term process involves some legal and consulting time as well. LocaLoop has offered to cover $6,000 of these costs. BUSINESS POINTS AND PARAMETERS: Below is an outline of proposed business points and parameters the City of St. Louis Park and LocaLoop MAX have been pursuing. As noted on October 26, these were proposed starting points subject to negotiation, and specifics are subject to final verification. Water Tower Agreement • Currently in place and used by other wireless providers, mostly cell phone providers. • LocaLoop was interested in discussing a lease rate reduction compared with cell providers because its equipment is smaller. Note that staff is recommending against a rate reduction in fairness to the cell providers, but is proposing credits to the leases. • LocaLoop is interested in using existing providers’ brackets instead of welding additional brackets to support a maximum of four Category 5 cables (total of about ½-inch diameter) on each tower. Dark Fiber Agreement • Formula for the rate of fiber resale: o Median cost between the City’s actual cost to install the fiber and the current cost to install fiber. Once calculated, the “sell rate” will be determined by the length of time the City wishes to have its ROI. Meeting of January 25, 2010 (Item No. 2) Page 4 o Using this formula, the monthly charge per mile would be $196 for a 20-year ROI. LocaLoop is currently interested in leasing approximately 7.14 miles of fiber. o LocaLoop is open to terms and may be willing to have a clause in the contract to reset rates if the market changes. Fiber Extensions • LocaLoop needs to install approximately just under one mile of additional fiber. This fiber is to close the gap between the City’s fiber and the water tower and private tower locations. • LocaLoop intends to build these fiber extensions at their cost and will give ownership of the additional fiber to the City. These extensions provide the opportunity for future use of the water towers by the City and other wireless operators. • It is recommended that in exchange for this additional fiber and conveyance of its ownership to the City, the City waive the first year of fiber lease payments. • To be fair, a similar arrangement could be completed with other potential customers who need to install additional fiber to accomplish their business goals, and turn over ownership of that fiber to the City. Legal, Consulting, Technical Fees • LocaLoop MAX has agreed to pay $6,000 of legal, consulting, and technical fees that the City may have in the process of negotiating this agreement and implementing the project. Credits • LocaLoop MAX and the City are proposing that LocaLoop MAX receive credits of $66,193 to reflect the value of fiber LocaLoop will be conveying to the City as well as legal, technical, and consulting fees LocaLoop will pay. • In addition, it is proposed that LocaLoop MAX be credited $58,800 for Wi-MAX subscriptions it will provide to the City of St. Louis Park. • These credits are to be applied to the water tower lease fees first, then the fiber lease fees. Council may also find the following points helpful: • After meeting with and hearing staff and LocaLoop representatives at its October 8 meeting, the Telecommunications Advisory Commission has provided its positive support. • This is a private sector initiative and project, thus, the financial risk to the City is low. • The City of St. Louis Park is not re-entering the retail wireless service business. It would be important to clearly communicate this and the City’s role strictly as a lessor of assets. • Wi-MAX is not wi-fi. That is, Wi-MAX was designed from the ground up for outside and mobile connectivity. Wi-fi began as an indoor connectivity tool and has been modified to operate outside, within its technical limitations. Wi-MAX requires a few antennas in very high locations, compared to the hundreds of antennas needed for wi-fi. • We already lease water tower assets for similar purposes. LocaLoop is requesting a modified approach to the water tower agreement (credits against lease fees) and creation of a new fiber leasing agreement. • Any agreement with LocaLoop MAX (as with any private provider) would be non-exclusive so other competitors may enter the St. Louis Park market. Meeting of January 25, 2010 (Item No. 2) Page 5 • LocaLoop is still prepared to cover $6,000 of the legal, consulting, and technical costs to the City associated with its project. • At the very least, the City of St. Louis Park would gain (1) about $60,000 worth of fiber infrastructure and (2) fiber connectivity to its elevated water towers for future City use and potential use by other private providers (part of fair treatment). In fact, LocaLoop has begun construction of this fiber facility. • If successful, the City of St. Louis Park could experiment with Wi-MAX for municipal uses in public safety and public services. • This project could also help inform the longer-term fiber study with a real world example. • If Council continues to feel access to additional high-speed Internet alternatives in St. Louis Park is a worthy goal, this could contribute to that goal. It is important to have the current City Council’s understanding and feedback on this opportunity with LocaLoop MAX. Since October 26, more business point details have become available, and are based on Council’s October 26 direction. LocaLoop MAX indicates it is hoping to start its service as soon as possible. In order for that to happen, enabling agreements may be presented for Council consideration as soon as February. CLEARWIRE: Council may have seen the recent StarTribune article regarding Clearwire’s planned deployment of Wi-MAX service in the Twin Cities metro area. Clearwire indicates it will launch this service in the Brooklyn Park area. Clearwire has indicated it intends to provide Wi-MAX service throughout the metropolitan area by the end of 2010. Indeed, of late, Clearwire has been aggressively submitting plans and applications to mount its Wi-MAX radios on several municipal elevated water towers, including those in St. Louis Park. Thus, St. Louis Park now has the potential for two Wi-MAX service providers – Clearwire and LocaLoop MAX -- starting in the same year. The following points about Clearwire, some relative to LocaLoop MAX, may be of interest to Council: • Clearwire is planning to blanket the entire metropolitan area with Wi-MAX service, so that a subscriber who lives in St. Louis Park should be able to receive mobile Wi-MAX service in another metro area community. LocaLoop is planning to serve only St. Louis Park at this time. • Clearwire has successfully deployed Wi-MAX in at least 25 other areas in the USA. • Clearwire has not proposed to provide any fiber infrastructure to the City of St. Louis Park, which LocaLoop has. In part, this fiber serves LocaLoop’s technical network model. Clearwire’s technical network model apparently does not require any City-owned fiber infrastructure. • Clearwire has not sought any lease fee credits for fiber or service, and has also not offered any fiber or services. LocaLoop has done so, and is also offering to provide fiber assets and subscriber service to the City of St. Louis Park. The City of St. Louis Park would be willing to discuss credits for other providers interested in building and conveying ownership of potentially useful fiber assets to the City. Meeting of January 25, 2010 (Item No. 2) Page 6 • One of Clearwire’s investors is Comcast, the City’s cable provider. In some locations, Comcast is a re-seller of Clearwire’s Wi-MAX service. Sprint owns more than half of Clearwire. • Final subscriber pricing for services from either provider have not been released, but one would imagine pricing will need to be competitive with each other and other broadband Internet services from telecoms such as Qwest and Comcast. FEDERAL STIMULUS MONIES FOR BROADBAND Council had also requested some information on Federal stimulus dollars available in Minnesota for broadband initiatives. There are at least two pieces to this. First, on December 22, 2009, the Department of Commerce's National Telecommunications and Information Administration (NTIA) announced that it awarded 15 grants to fund broadband mapping and planning activities in Arizona, Florida, Georgia, Illinois, Michigan, Minnesota, Nevada, North Dakota, Ohio, Oregon, Puerto Rico, Rhode Island, South Carolina, South Dakota, and Tennessee under NTIA’s State Broadband Data and Development Grant Program. The program, funded by the American Recovery and Reinvestment Act (ARRA), will increase broadband access and adoption through better data collection and broadband planning. The data will be displayed in NTIA’s national broadband map, a tool that will inform policymakers’ efforts and provide consumers with improved information on the broadband Internet services available to them. In Minnesota, NTIA has awarded Connected Nation approximately $1.2 million for broadband data collection and mapping activities over a two-year period and almost $500,000 for broadband planning activities over a five-year period in Minnesota, bringing the total grant award to approximately $1.7 million. Connected Nation is the designated entity data collection and planning agency for the state of Minnesota. Second, the Commerce Department’s National Telecommunications and Information Administration (NTIA) and USDA’s Rural Utilities Service (RUS) just announced availability of $4.8 billion in American Recovery and Reinvestment Act grants and loans to expand broadband access and adoption in America. This is the second funding round for the agencies’ broadband programs. The investment will help bridge the technological divide, boost economic growth, and create jobs. Under NTIA, approximately $2.6 billion will be allocated in this funding round of which approximately $2.35 billion will be made available for infrastructure projects. In this round, NTIA is adopting a “comprehensive communities” approach as its top priority in awarding infrastructure grants, focusing on middle mile broadband projects that connect key community anchor institutions – such as libraries, hospitals, community colleges, universities, and public safety institutions. Comprehensive Community Infrastructure projects maximize the benefits of Broadband Technology Opportunities Program (BTOP) by leveraging resources, promoting sustainable community growth, and ultimately laying the foundation for reasonably priced broadband service to consumers and businesses. In addition, NTIA plans to award at least $150 million of the funding for Public Computer Center projects, which will expand access to broadband service and enhance broadband capacity at public libraries, community colleges, and other institutions that service the general public. NTIA also plans Meeting of January 25, 2010 (Item No. 2) Page 7 to award at least $100 million for Sustainable Broadband Adoption projects, which include projects to provide broadband education, training, and equipment, particularly to vulnerable population groups where broadband technology has traditionally been underutilized. The City of St. Louis Park did not make application to round one funding. Staff is currently reviewing round two specifications to determine what the specific opportunities and requirements are, and whether to recommend the City make application. FINANCIAL OR BUDGET CONSIDERATION: It is recommended that the City of St. Louis Park continue to assume $6,000 of out-of-pocket legal, consulting, and technical fees associated with the LocaLoop MAX project be paid by LocaLoop MAX, similar to other development projects. There should be very few, if any, other out-of-pocket costs associated with the LocaLoop MAX agreements. Other costs include staff time. At this point, Clearwire is not proposing to cover any extraordinary legal or technical fees, but Clearwire is also not requesting a waiver or deferral of any fees or providing any fiber assets to the City as part of an agreement. Revenue streams from LocaLoop MAX and Clearwire are possible with the leasing of fiber and water tower assets. VISION CONSIDERATION: The LocaLoop MAX project and Clearwire’s efforts both have the potential to support St. Louis Park’s desire to be a well connected community. STUDY SESSION RESOURCES: Staff, the City’s consultant from Elert & Associates, and TAC members will be present to help address Council questions. Attachments: LocaLoop St. Louis Park Project Deployment Summary Excerpt of October 8, 2009 TAC Minutes St. Louis Park Fiber Map Prepared by: Clint Pires, Chief Information Officer Approved by: Tom Harmening, City Manager Meeting of January 25, 2010 (Item No. 2) Page 8 Meeting of January 25, 2010 (Item No. 2) Page 9 Meeting of January 25, 2010 (Item No. 2) Page 10 Meeting of January 25, 2010 (Item No. 2) Page 11 October 8, 2009 Related TAC Minutes 1. New Business A. Long term fiber infrastructure planning Mr. Pires reported the City needed to discuss what should happen with the 26 miles of fiber that the City of St. Louis Park has installed for both the short term and in the long term. The Council will discuss what happens with fiber in the City on October 26, and so the Commission’s comments and suggestions are appreciated. For the short- term opportunity, LocaLoop has approached the City about providing Wi-MAX 4th generation (4G) services for the private sector, not provided by the City. They would use City-owned assets, specifically water towers, and would lease capacity on the City’s fiber optic system. There is an issue of fairness and accessibility to other providers. This would not be much different than the current relationships with other wireless providers using water towers. Carl Torarp, Local Loop, presented their business proposal: • Building “Mobile Wi-MAX 4G” Broadband Service (affordable internet service combined patented technology with standard mobile, creates profitable business for mobile and fixed broadband • Timing – There is an increased demand for Broadband • Technology - Speed, capacity and spectral efficiency separates the 4G from 3G (can handle both fixed and mobile and the technology is proven) • Community Benefit – This would provide community broadband for all of St. Louis Park, anywhere in the city. In additional to the fixed service to the home, LocaLoop would offer a complimentary service that is mobile, competitively priced, and performs 5-6 times the speed of cellular 3G. LocaLoop is a local St. Louis Park company. • Benefit to City – Private affordable broadband, utilize City assets, utilize City’s investment in fiber, extension of City fiber at LocaLoop cost, available city- wide for public safety and additional applications (Police, Fire, Inspections, Public Works, GIS), aid in establishing long term policy for fiber leasing, no financial up front cost, long-term obligation or risk, special programs for under privileged groups, first Minnesota city with complete mobile coverage for next generation broadband internet services • Consumer Pricing – Mobile: $29/month, $99 device, $29 activation; fixed- home, $49/month, $8/rental, $79 activation; Indoor/Wi-Fi, $49/month, $9/rental, $99 activation; Outdoor, $49/month, $9/rental, $149 activation. Commissioner Browning asked if Wi-MAX was the defined standard? Mr. Torarp replied yes. Meeting of January 25, 2010 (Item No. 2) Page 12 Commissioner Browning asked if there were issues with signal interference or with weather? Mr. Torarp replied one reason this was the global standard and Wi-MAX was developed was because of those issues. It is a non line of sight product that gets to the user. Distance can diminish the signal, but the network will be designed in an intelligent way to compensate. Commissioner Browning asked how fast it was? Mr. Torarp replied by feeding Wi- MAX with fiber, you don’t have the bottleneck others have. It is 5-6 times better than 3G, 700-800 kilobits average (x6), with peak speed up to 30 megabits/second. It also depends on usage of the network. They will only offer a premium service. Chair Keeler asked if the 4G network had been rolled out in other countries? Mr. Torarp replied this application would take back the lead in wireless broadband Internet technology. Europeans are stuck in cellular technology. Wi-MAX is being implemented in many places all over the world. Chair Keeler asked if he purchased the Wi-MAX antenna, could it be used outside of St. Louis Park? Mr. Torarp replied initially no. Outside of St. Louis Park it would receive Wi-Fi, but it won’t take long for the potential hand off to other carriers where Wi-MAX is available. Chair Keeler asked about the administration and if LocaLoop would be the seller of the service and do the sign up of St. Louis Park residents? Mr. Torarp replied yes. Chair Keeler asked if they had an anticipated staffing plan? Mr. Torarp replied they would hire according to need as the business grows. There would probably be 20 people just for St. Louis Park. Chair Keeler asked if they had deployed this anywhere? Mr. Torarp replied this was the first deployment. Chair Keeler asked about the financial backing? Mr. Torarp responded there were no issues with the financing, they are privately financed. Commissioner Hartman asked if this would be compatible with the 4G network that had been announced by Verizon? Mr. Torarp replied Verizon was using competing technology, which would be tested in the spring. Commissioner Browning asked about the scalability and if there was capability to enhance from premium service? Mr. Johnson replied part of the premise of Wi-MAX was to go beyond the best effort service. It is an adaptive, intelligent network. The next standards to come out hold promise of bigger speeds. The experience is different with Wi-MAX. Meeting of January 25, 2010 (Item No. 2) Page 13 Mr. McHugh asked if they would be able to cover ten square miles with the existing towers? Mr. Torarp responded that was what they were proposing with the three towers. Mr. Johnson added there would be more deployed. Mr. Dunlap asked why there would be need to install more fiber? Mr. Torarp replied to fill the gaps from the fiber network to the tower locations. Mr. Pires stated the proposal is to build fiber at their cost and turn over the assets to the City. Chair Keeler asked if they had determined a pilot area? Mr. Torarp replied they would have 50 consumers with both businesses and residents and run for a month. They were considering Southeast St. Louis Park. Commissioner Browning asked about power levels? Mr. Johnson replied that power levels vary but the design of the network will compensate for that. They need to look at the density and number of stations. Tom Pavek, Elert and Associates, stated there were global issues to consider from a long-term standpoint. This is an aggressive time line for this opportunity and the City needs protect its long term interests. There is excess fiber that does not have another city use and is valuable for others to use. It is like renting space on the water towers, or if there was another empty floor on this building, renting it because it’s an available asset. The City needs to make a distinction between renting and leasing and the business opportunity. It’s LocaLoop’s business to market and be successful; it’s the City’s interest to provide the asset at a market rate and not subsidize the service. Options for the fiber include: lease or sell strands; do nothing, barter services, or could sell services like a phone company, which is more difficult. • Because this entity (LocaLoop) wants to fast track, the City needs to make sure there is enough capacity for other users and that there is no preferential treatment • Different than in the prior wireless project, it is their (LocaLoop) risk • This is renting space • The City doesn’t have much role in what LocaLoop does with this asset • Don’t let short-term interests affect the long-term plan • From a down side, they aren’t substantial, but they exist. Will residents make a connection that this is not the City? • The City needs to maintain the fiber network – much like it does now • Make sure everyone has opportunity to set up private enterprise – not subsidize their business • Long-term, the City needs a policy for this is a valuable asset • Look at short-term opportunities and protect the long run Meeting of January 25, 2010 (Item No. 2) Page 14 Commissioner Hartman asked if they could add more fiber to the conduits? Mr. Pavek replied yes, there would be costs to install more fiber. We’d need to look at the routes to determine if there were any limited routes and consider adding more fiber to that area. It looks as though only one area is vulnerable but we’ll work with the School District on that. Chair Keeler asked what the current excess capacity is, and what the City and School are using? Mr. Pires replied it varied by part of town and what they were running. One example is the new fiber installed by ARINC included 48 strands and almost none of that is being used. Mr. Pavek stated if there are aspects with this agreement where they run out, they will address that in the agreement. Chair Keeler asked what the market rate was for leasing? Mr. Pavek stated they have some preliminary information, but need substantial documented information. Mr. Pires stated over the past twelve months the City had been approached by seven firms interested in leasing fiber, so that’s another reason for a long term policy. Commissioner Browning asked how much bandwidth was available? Mr. Pires said from 24 strands to close to 200 strands. Mr. Pavek replied they are likely to improve electronics and less likely to increase fiber, and that you don’t want to lease all strands. Chair Keeler asked what role the Telecommunication Commission played? Mr. Pires responded when this was discussed with City Council they wanted the Commission’s input and recommendations. Mr. Dunlap noted the Council would discuss this issue at their October 26th meeting and that they could be provided with this meeting’s minutes for background. Mr. Pires added they had discussions with the City Attorney and had determined leasing of fiber would be very similar to how the City leases water tower space. Mr. Pavek felt it was good timing and could be a nice package for the City if they were protected. Commissioner Browning liked this concept and felt it was coming at the right time. The only option for broadband was in bundled services. He has issues with bundled services, but understood the marketing. This is a great opportunity for the City. Commissioner Dworsky indicated he would send his comments to Mr. Dunlap. He agreed that LocaLoop is responsible for the service but the City has responsibility for the hard asset. Meeting of January 25, 2010 (Item No. 2) Page 15 Commissioner Hartman asked how trees affected the frequency? Mr. Torarp replied they have licensed frequency to make it work. He said when Sprint deployed the mobile Wi-MAX system in Baltimore, they did a lousy job because they fed the base stations with T1 telephone lines. That wasn’t enough capacity to provide the service. So it goes back to network design, and this technology will go through the tree canopy assuming you design it correctly. Chair Keeler felt this was a good opportunity for residents of St. Louis Park and good timing. He agrees we need to develop a long-term policy on fiber and include fairness to other parties and maintenance plans for City future use. It was moved by Commissioner Browning, seconded by Commissioner Dworsky, to recommend the City move forward with the project as proposed. The motion passed 4-0. (Peterson was no longer on teleconference). It was moved by Commissioner Browning, seconded by Commissioner Hartman, to proceed with a long-term fiber policy. The motion passed 4-0. (Peterson was no longer on teleconference). Chair Keeler noted the Commission had formed a sub committee to work on fiber issues, was that an appropriate forum to work on a policy? Mr. Pires replied yes. Meeting of January 25, 2010 (Item No. 2) Page 16 Meeting Date: January 25, 2010 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: Draft Ordinance - Wind Energy Conversion System (WECS). RECOMMENDED ACTION: No formal action needed at this time. This report and study session discussion is a follow-up to previous City Council discussions on wind energy. POLICY CONSIDERATION: • Should the city adopt ordinances to regulate alternative wind energy sources? • Does the City Council concur with the recommendations provided in this report? • Should staff commence the formal review process to allow for consideration of an ordinance regulating wind energy conversion systems? BACKGROUND: On March 23, 2009, the City Council received a report from staff outlining current regulations as they pertain to wind turbines. The conclusion was that existing regulations do not specifically address wind turbines, and that it would be best to be proactive and take a closer look at the issue of wind generators and city regulations. Since the March 23rd meeting, staff attended two separate seminars on wind energy, and utilized the resources available at the Minnesota Office of Energy Security pertaining to Renewable Energy and Advanced Technologies such as wind, solar and geo-thermal energy. The city also retained Brian Ross, Principal of CR Planning to provide a framework for wind energy regulations. His firm specializes in energy planning, and has assisted numerous cities, counties and some states including Minnesota in formulating energy policies and regulations. Mr. Ross prepared a Wind Energy Background Report specifically addressing wind energy options for St. Louis Park. A copy of this report was forwarded to the Council on September 14, 2009, and is also attached to this report for your convenience. A draft ordinance was presented to the Planning Commission at the January 6, 2010 study session. The Commissioners discussed whether or not WECS should be allowed in residential areas. Mr. Ross stated that the current draft does not allow WECS in residential districts. WECS at single family homes located in inner ring suburbs like St. Louis Park, where consistent wind resources are poor, are more like wind sculptures than effective alternative energy systems. He also stated that residential WECS tend to generate many neighbor complaints because of the visual, height and sometimes noise impacts. It’s possible that as technology improves, there may come a time where they are more effective, however, other alternative energy systems such as solar and geo-thermal will Meeting Date: January 25, 2010 (Item No. 3) Page 2 most likely always be more practical and efficient in settings like St. Louis Park. Also the city could re-evaluate the ordinance as technology improves and the actual and perceived impacts on neighboring properties lessen. Research Summary: Wind Energy Background Report: In his report (see attachment) Mr. Ross reported on the feasibility of WECS in St. Louis Park, taking into consideration research and resources available, current and anticipated WECS technology and general development patterns, topography and ground cover in St. Louis Park. The report is attached, and highlights of the report are as follows: ▪ Two reasons for having regulations on wind energy installations are: i. To promote or encourage renewable energy and energy efficiency; and ii. To address actual or perceived nuisances associated with wind energy installations. ▪ Wind energy installations are not the most cost effective means to reduce energy bills, however they can be a step toward sustainability and energy self sufficiency. ▪ The Twin Cities Metropolitan Area is an area of poor wind resources. The urban landscape creates a low-speed and turbulent wind resource that is difficult to capture with existing technology. ▪ Wind generators can be categorized into three broad types, Utility-scale generators, Small wind generators (potentially powering a single site); and, Micro wind systems (emerging technology – very low power generators) ▪ St. Louis Park does not have any large scale wind opportunities. Some property owners may be interested in pursuing small or micro scale generators. ▪ While micro wind systems may be the most applicable type for St. Louis Park, most of our residential areas are not appropriate for these systems because of: i. Visual impacts - the height needed is at least 30 feet above obstructions, ii. Tower fall zone is needed at 100% or more of height, iii. Noise is generated from WECS and can be an issue. WECS Draft Ordinance: In addition to studying the feasibility of wind energy in St. Louis Park, Mr. Ross assisted staff in preparing a draft ordinance. This draft is written based on the study findings that wind is not considered to be a viable energy alternative for most of the city. Even WECS installed in areas that have good topography, clear zones and height are still not expected to be cost effective due to the cost of the system and low consistent wind speeds. Therefore the intent of the draft ordinance is to allow WECS only in the large open areas typically found in commercial, industrial and park areas where they are most effective. In conjunction with the ordinance, the city will continue to encourage home owners to pursue more efficient means of saving energy and money by utilizing existing programs to replace windows, siding, roofs, insulation and appliances. Meeting Date: January 25, 2010 (Item No. 3) Page 3 In summary, the draft ordinance proposes the following: 1. WECS would be allowed in the commercial, office, and industrial districts only. 2. 1-1.5 acre minimum lot sizes would be required. 3. Minimum setbacks from property lines would be 110% of the WECS height. 4. Roof-mounted WECS would not be allowed. 5. Towers would be required to be monopole design only, without guy wires. 6. WECS would be required to meet noise limits defined in existing city code. 7. Height limits are similar to radio towers allowed in the respective districts. 8. Several other design and general requirements. Planning Commission discussion On January 6, 2010, the Planning Commission discussed the draft wind ordinance. Consultant Brian Ross was present. There were several technical questions and a discussion ensued about whether or not turbines should be allowed in single family residential zoning districts. Mr. Ross noted that nuisances arise in areas with urban-size lots. The issues primarily surround the visual impacts, and the fact that the safety fall zone ends up in someone else’s yard. Some Commissioners suggested the idea of sustainability might be worth allowing systems in single family areas. Mr. Ross indicated that while he is a renewable energy advocate, he knows turbines generate many complaints for cities, and it is hard to justify them if they are not truly viable as renewable energy systems given St. Louis Park’s low energy wind regime. Commissioners noted they would not want to shut the door on such systems; staff indicated it is an area where technology will have to be monitored and the ordinance will have to be revisited as it becomes a stronger choice. Next Steps: If directed by the Council, staff will set a public hearing to consider a zoning ordinance amendment addressing WECS. City Attorney, Tom Scott will finalize his review of the ordinance. City staff will complete a brochure summarizing all alternative energy and energy efficiency programs available to St. Louis Park residents and business owners. FINANCIAL OR BUDGET CONSIDERATION: The Council previously authorized up to $10,000 to research and prepare the draft ordinance. Staff contracted with a consultant specializing in alternative energy to assist in the research and preparation of the ordinance. The contract amount is $2,500 plus a fee for additional meetings as requested by staff. Meeting Date: January 25, 2010 (Item No. 3) Page 4 VISION CONSIDERATION: Research on wind turbine towers is consistent with the Council’s Vision Strategic Direction, “St. Louis Park is committed to being a leader in environmental stewardship.” Attachments: Draft Wind Energy Conversion System Ordinance Wind Energy Background Report – Community Resources Planning Prepared by: Gary Morrison, Assistant Zoning Administrator Reviewed by: Meg McMonigal, Planning & Zoning Supervisor Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager Meeting Date: January 25, 2010 (Item No. 3) Page 5 Draft Wind Energy Conversion System Ordinance Sec. 36-4. Definitions. Wind energy conversion system (WECS) means all necessary devices that together convert wind energy into electricity, including the rotor, nacelle, generator, tower, electrical components, foundation, transformer, and electrical cabling from the tower to building or substation(s) and their support facilities. Wind energy conversion system, building mounted means a wind energy conversion system that is attached to a building for structural support. Wind energy conversion system, large means a wind energy conversion system with a rated capacity of greater than 100 kW. Wind energy conversion system tower means a support structure to which the nacelle and rotor are attached. Wind energy conversion system height means the distance measured from the lowest exterior grade at the base of the WECS to the highest point of any component of a WECS. *** Sec. 36-___. Wind Energy Conversion Systems (WECS). (a) Purpose. The purpose of this section is to establish minimum requirements for the size, placement and maintenance of wind energy systems by adoption of regulations governing all wind energy systems in the city. (b) Findings. The City finds that: (1) While there is limited opportunity for wind power generation in St. Louis Park, the City may have some sites that have the right characteristics of topography, land cover, and lack of turbulence for the land owner to consider wind energy as an option for sustainability. These sites tend to be large open areas typical of commercial, industrial or park properties. (2) Wind energy systems can create a number of real or perceived nuisances and safety considerations including structural reliability, visual impacts, bird and bat kills, noise, shadow flicker, and ice throw. Therefore, careful consideration must be given when siting a wind energy conversion system. Meeting Date: January 25, 2010 (Item No. 3) Page 6 (c) Standards by Zoning District. Table 36-___A lists in which zoning districts WECS are allowed. The table also identifies, by zoning district, the maximum allowed height, the maximum number of WECS allowed per lot and the minimum required lot size. Table 36-___A WIND ENERGY CONVERSION SYSTEM STANDARDS Height Limit (feet)* Distric t Permitte d, up to Condition al Use, up to Max. # of WECS per lot* Minimum Lot Size C-2 110 170 2 1.5 O 110 170 2 1.5 I-P 110 199 4 1.5 I-G 110 199 4 1.5 * The height and number of systems per lot is dependent on meeting the setback requirements. (d) Setbacks. WECS shall meet the following setback requirements: (1) At least 110% of the WECS height from all property lines. (2) At least 100% of the WECS height from other WECS. (3) At least 20 feet from principal buildings. (4) The furthest reach of the blade must be at least 30 feet from the ground and any other obstruction. (e) Design requirements. All WECS shall meet the following design requirements. (1) Monopole tower. All towers shall be of a free standing monopole type that does not utilize guyed wires or any other means to support the tower. (2) Roof mounting. Roof mounted WECS are prohibited. (3) Minimize visual impact. WECS design and location shall minimize visual impact. (4) Color and finish. All WECS shall be white, grey or another non-obtrusive color. Blades may be black in order to facilitate deicing. Finishes shall be matt or non- reflective. (5) Tower lighting. WECS shall not be artificially lighted, except to the extent required by the FAA or other federal or state law or regulation that preempts local regulations. Meeting Date: January 25, 2010 (Item No. 3) Page 7 (6) Signs and displays. The use of any portion of a WECS for displaying flags and signs, other than warning or equipment information signs, is prohibited. (7) Associated equipment. Ground equipment associated with a WECS shall be housed in a structure. Structures housing equipment shall meet the architectural design standards of the Zoning Ordinance. Control wiring and power-lines shall be wireless or underground. (8) Braking system required. All WECS shall have an automatic braking, governing or feathering system to prevent uncontrolled rotation, overspeeding and excessive pressure on the tower structure, rotor blades and turbine components. (9) Design height. The applicant shall provide evidence that the proposed height of the WECS does not exceed the height recommended by the manufacturer or distributor of the system. (10) Interconnection agreement. The applicant shall provide a copy of the utility notification requirements for interconnection, unless the applicant intends, and so states on the application, that the system will not be connected to the electricity grid. (11) Technology standards. WECS must meet the minimum standards of a WECS certification program recognized by the American Wind Energy Association, such as AWEA’s Small Wind Turbine Performance and Safety Standard, the Emerging Technologies program of the California Energy Commission, or other 3rd party standards acceptable to the City. (f) Permits required. In addition to the information and permits required elsewhere in this Code, applications for a WECS shall include the following information unless it is determined by the Zoning Administrator that certain information is not required based upon the nature of the proposed WECS. (1) A dimensioned drawing that illustrates the total WECS height, including the footings and tower width. (2) A site plan illustrating that the proposed WECS complies with all setbacks and other requirements affecting where a WECS can be located. (3) A report that describes decibels at varying wind speeds for a set distance from the turbine, up to the cut-out wind speed. (4) Additional information requested by the Zoning Administrator necessary to evaluate the request. (g) Noise. Audible sound due to wind energy system operations shall comply with the standards governing noise contained in the City of St. Louis Park Code of Ordinances. Meeting Date: January 25, 2010 (Item No. 3) Page 8 (h) Abandonment and decommissioning. If the WES remains nonfunctional or inoperative for a continuous period of one year, the system shall be deemed abandoned and shall constitute a public nuisance. The owner shall remove the abandoned system at their expense after a demolition permit has been obtained. Removal includes the entire structure including foundations to below natural grade and transmission equipment. Wind Energy Background Report Prepared by CR Planning, Inc. -1- City of Saint Louis Park Local Government Goals for Renewable Energy Regulation Communities typically enact wind energy development regulations in order to meet two distinct goals: 1. In order to promote or encourage renewable energy in their community; 2. In order to address the actual and perceived nuisances associated with wind energy installations. These two goals are not mutually exclusive; most communities consider both goals as they construct development regulations to address wind energy installations. The most important consideration as the community evaluates wind energy ordinance provisions is to keep these two goals in mind as each aspect of regulation is debated. While the two goals are not mutually exclusive, some regulatory provisions will serve one of these goals at the expense of the other. The St. Louis Park Comprehensive Plan has a number of goals that demonstrate the need to consider both of the two general goals noted above. The Comprehensive Plan calls both for improving the sustainability of the City and for protecting neighborhood character. Many communities are struggling with the question of whether wind energy is a reasonable use in residential areas or if it should be considered primarily as a non-residential use. Why invest in wind energy? Investments in wind energy systems are made for a variety of reasons. Every investment in wind energy, furthermore, involves multiple levels of stakeholders, including adjacent property owners, the electric utility, and the local government. Homeowners, businesses, utilities, and local governments have distinct interests in wind energy, as noted below. Homeowners are interested in wind energy to reduce their carbon footprint, become more self- sufficient or independent, save money on the utility bill, and because of an interest in the technology. Businesses are interested in wind energy for the ‘green’ symbolism of renewable energy and meeting climate protection or sustainability commitments. Businesses also may see wind energy installations as a way to reduce energy costs or limit risk of energy price volatility through diversifying their energy supply. Balancing Goals A typical element of wind energy regulation is regulating tower height. Restricting tower heights serves the goal of limiting visual nuisances and addressing safety considerations, serving goal #2. Restricting tower height also has the effect of limiting renewable energy production (goal #1). Electric production from a wind turbine is greatly affected by tower height; limiting tower heights has a dramatic diminishing effect on the production of renewable energy. Similarly, setting the tower height limit to 120 feet will allow most small wind turbines to maximize the local wind energy, best serving goal #1. In urban areas, however, a 120 foot tower comes with visual impacts and safety risks. In the event of a tower collapse, albeit a rare event, a 120-foot tower in an urban area poses safety risks to more than one neighbor. Wind Energy Background Report Prepared by CR Planning, Inc. -2- City of Saint Louis Park Utilities have several interests in wind energy development. For instance, utilities have a statutory interest in renewable energy in the form of the Renewable Portfolio Standard. Most of the RPS capacity, however, will be met via contracts with large-scale wind developers and some of their own investment in wind farms. Small scale wind is unlikely to play significantly in the utility meeting its statutory obligations. In addition to meeting their RPS goals, utilities have an interest in small wind energy projects because these projects fall under Minnesota’s “net metering” law (the utility has to buy the power at the same rate as the home or business buys from the utility), and distributed wind generation affects how energy is consumed, generated, and distributed on the utility grid. Local governments have several point of interest in renewable energy. Cities such as St. Louis Park have made commitments to sustainability or climate protection and might see renewable energy as being in the portfolio of solutions to meeting those commitments. Renewable energy is also a local resource that displaces an ‘imported’ resource, meaning that renewable energy has economic development benefits. Finally, renewable energy is a form of “distributed generation”, which has proven to improve power quality and reliability on the local electric grid, a critical component of local infrastructure that runs along City rights-of-way. Balancing Sustainability Choices Local governments need to consider the interaction of these various interests in evaluating local renewable energy policy or regulation. In making informed choices about sustainability, the City must also consider the multiple paths to sustainability. For instance, while wind energy installations will reduce a homeowner’s or business’s energy bill, wind energy is not the most cost effective means to achieve that particular goal. Energy efficiency is virtually always a better investment than renewable energy systems from the standpoint of cost savings or total effect on greenhouse gas reductions. The cost-effectiveness perspective is not, however, always the primary interest in choosing a sustainability strategy – energy efficiency rarely provides a visible symbol of sustainability as does a renewable energy system. Renewable energy also offers the promise of self-sufficiency (you need some kind of energy production to build a zero-energy building or to get to a zero net carbon footprint). Within renewable energy choices, solar energy is sometimes the better sustainability choice than wind energy. Solar is not as cost-effective as wind energy, except in urban areas where the wind resource is sporadic and the nuisances of wind energy more limiting. Both wind and solar energy are complementary to an energy efficiency strategy for moving toward a zero-energy or zero-carbon building. Wind Energy Background Report Prepared by CR Planning, Inc. -3- City of Saint Louis Park Wind Energy Resources and Technology Wind Resources in Minnesota, the Metropolitan Area and St. Louis Park. Minnesota has a tremendous wind energy potential. The wind energy resource is, however, not distributed evenly across the State; some areas have an excellent wind resource, while other areas have a poor wind resource. A statewide representation of wind resources is shown in Figure 1. The factors that contribute to a good wind resource include: ¾ Topography: high ground has more wind resource than low ground. The Buffalo Ridge in southwest Minnesota is higher than surrounding areas for miles, and thus provides a large area of good wind resource. The Minnesota River Valley similarly stands out as a lower resource area than surrounding land. ¾ Land Cover: Land cover such as trees and buildings reduce wind resources, while land cover such as crops and prairie have little effect. Prairies and lakes show up as good areas for wind energy, forested areas are poor (at least at the 30 meter height). ¾ Obstructions Creating Turbulence: A single object sticking up will create turbulence in the wind. Buildings, trees, even wind turbines themselves will create turbulence for surrounding areas. Turbulence will dramatically reduce the effectiveness of wind energy conversion systems. Wind Energy Background Report Prepared by CR Planning, Inc. -4- City of Saint Louis Park Given these characteristics, one can understand why the metropolitan region appears to be an area of poor wind resources. Figure 2 shows a blowup of the same map for the metropolitan region. As can be noted, there are very few obvious opportunities to capture high-quality wind energy. The urban landscape creates a low-speed turbulent wind resource that is difficult to capture with existing technology. When considering the wind resource maps, keep in mind that the maps present data at a 500- meter resolution. This resolution accurately depicts the regional wind resource differences, but does not provide resolution sufficient to identify specific sites that are good or bad for wind energy. There are small sites that are quite good for wind energy in the white (poor resource) areas, and poor sites in the high value areas (orange and brown) along Buffalo Ridge. Also, the maps show wind resources at 30 meters (about 100 feet). We chose to present the 30 meter data because that is the most relevant information for the type of wind turbine likely to be seen in St. Louis Park (see the wind technology summary). Wind Energy Conclusions Based on these data, St. Louis Park certainly does not have any large scale wind energy opportunities. St. Louis Park may, however, have some small sites that have the right characteristics of topography, land cover, and lack of turbulence for the land owner to consider wind energy as an option for sustainability. Even the best sites, however, are likely to be marginal from the standpoint of cost effectiveness or productive energy output per dollar of capital. Identifying good sites is likely to occur on an ad hoc basis, or on guesswork by the SLP Wind Energy Background Report Prepared by CR Planning, Inc. -5- City of Saint Louis Park landowner. Some communities have evaluated wind resources at a more detailed community level in order to assess where to put, for instance, a wind energy overlay district. The cost of such a study (ranging from $3,000 to $7,000) must be balanced against the likelihood of identifying meaningful wind resources. As noted later, if the City wishes to consider renewable energy production as a regulatory threshold, it can require performance estimates in the application for a land use or building permit. Current Technology and Technology Trends Wind energy technology has changed considerably over the last 20 years, and continues to evolve. For the purposes of this background report, we have separated the technology into three categories that help guide renewable energy regulation in St. Louis Park; 1) Utility-scale wind turbines 2) Small wind turbines 3) Micro- and alternative-design turbines 1) Utility-scale Wind Turbines. Utility-scale turbines are the largest type of turbine, typically seen in rural areas as part of wind farms, as seen in western Minnesota and northern Iowa, but occasionally on an individual basis, such as the Carleton Collage and Saint Olaf College turbines on the edge of Northfield. Size: These turbines are 300-600 feet in height and have a rated capacity measured in the megawatt (MW) range. Purpose: Utility-scale turbines are almost always designed to generate electricity for sale on the electric grid, and can produce electricity that is cost competitive with more traditional fuels. Evolution of technology: As the industry evolves, these turbines are getting bigger and bigger; 15 years ago a large turbine had less than one MW of generating capacity, turbines now are multiple MWs in capacity and getting larger. Applicability to St. Louis Park: The only cities that need to address such large turbines in their development ordinances are cities outside metropolitan areas. The turbines need to be clearly separated from homes and infrastructure by hundreds of feet and are placed only where the wind resource is optimal. St. Louis Park does not have sites suitable for such a large scale turbines. Wind Energy Background Report Prepared by CR Planning, Inc. -6- City of Saint Louis Park 2) Small Wind Turbines. Small wind turbines include most all non-utility scale turbines and have a wide range of heights and capacity. They are substantially smaller than utility scale turbines – there is a large gap in size and capacity between utility-scale and small wind turbines. Size: Small wind turbines usually have towers between 60 and 120 feet, although some will approach 200 at the top end of the scale. Capacity is measured in kilowatts (KW) rather than the MW range of the utility-scale turbines, but rarely is more than 100 KW. Purpose: Small wind turbines are usually deployed as single units rather than as part of a wind farm, and frequently sized to first meet on-site electric demand rather than to generate electricity for sale on the grid. These systems are not cost competitive as utility power sources, but can be (with a good wind resource) cost competitive from a retail perspective. Small wind is probably the most cost effective on-site renewable energy technology. Evolution of technology: While small wind technology is evolving, the capacity and height are largely unchanged over the last ten years. Changes have been in improved efficiency, reduced noise, and increased reliability. Applicability to St. Louis Park: Many cities need to address small wind in their development ordinances. The cost of small wind turbines is within the reach of homeowners and small businesses. As the interest in renewable energy grows, more individuals wish to put up small wind turbines in order to make a relatively economic investment in renewable energy. Issues will include visual impacts, safety considerations, and concerns about noise, shadow flicker, and property value impacts. 3) Micro systems and Alternative Technologies. Micro systems and alternative technologies include very small traditional turbines, and a variety of vertical axis and building-mounted wind energy systems. These systems are far less common than traditional small wind and do not have the years of demonstrated success of either small wind or utility scale wind. Size: Micro systems and alternative systems are usually less than 80 feet tall and frequently are advertised to be mounted in urban areas even on buildings. The capacity is usually less than 10KW and may even be measured in watts (less than one kilowatt). Purpose: Micro systems and alternative technologies are intended to provide power for The Swift wind turbine from Cascade Engineering (Credit: Cascade Engineering) Wind Energy Background Report Prepared by CR Planning, Inc. -7- City of Saint Louis Park primarily on-site use in situations where traditional small wind cannot be deployed (such as low-speed wind, turbulent wind, and in urban settings). The systems are intended to compete with other forms of on-site energy production (solar energy, wood energy, biomass), and offer a renewable alternative to retail electric prices. Evolution of technology: Micro systems and alternative designs are rapidly changing. A number of new companies are marketing new products for the specific purpose of tapping into the urban and suburban market for wind energy. Nearly all these products, however, are largely unproven as a meaningful source of renewable energy. Some recent real world tests of these technologies have demonstrated a much lower than advertised performance. New technologies are being rolled out but no technology has yet proven to be able to capture urban or low-speed wind. Applicability to St. Louis Park: Many cities need to address micro turbines and small wind in their development ordinances. The target market for these systems is the homeowner and small businesses, and the cost is generally lower than traditional small wind systems. Issues to address include both nuisance considerations as noted for small wind systems and the viability of the systems to actually generate renewable energy. Technology Conclusions St. Louis Park is most likely to see requests to install the latter two categories of wind energy technologies; small wind, and micro/alternative technologies. St. Louis Park has a variety of lot sizes and land uses, some of which could be appropriate for wind energy systems. Most residential areas, however, have lot sizes and residential density that is not appropriate even for small wind, leaving just the micro- and alternative systems as a potential option for these areas. As noted above, the primary question then becomes whether such systems are even viable as renewable energy systems in St. Louis Park’s low energy wind regime. Some consideration may also need to be given to systems that exceed the small wind size thresholds noted above that could conceivably be used on a few industrial or large commercial sites. For instance, the wind turbine at the Great River Energy facility in Maple Grove, adjacent to the large commercial shopping are, does not reach the threshold of a utility-scale system but is bigger than what is considered a small wind system. Such a possibility can be addressed via a conditional use permit process to assess the particular visual and safety impacts on the larger site. Wind Energy Background Report Prepared by CR Planning, Inc. -8- City of Saint Louis Park Regulatory Issues Regulation associated with wind energy takes two forms, which mirror the two regulatory goals noted at the beginning of this background report: 1. Regulation to encourage renewable energy 2. Regulation to address nuisances and land use conflicts Nuisance Regulation Wind energy systems can create a number of real or perceived nuisances or safety considerations that are addressed in wind regulatory ordinances, including the following: ¾ Tower fall zone ¾ Visual impacts ¾ Bird and bat kills ¾ Noise performance standards ¾ Shadow flicker ¾ Harm to habitat ¾ Construction impacts ¾ Electro-magnetic interference ¾ Ice throw ¾ Impacts to property value Most of these considerations, including construction impacts, electro-magnetic interference, bird and bat kills, shadow flicker, and harm to habitat, are much more associated with utility scale turbines and wind farms (multiple turbines operated to generate power for the wholesale market). St. Louis Park does not need to consider wind farms or utility scale turbines, and thus can likely disregard these considerations except as a perceived, rather than real, risk. Individual instances may occur, such as a few birds killed by turbines, but the impact on bird populations from small wind systems is negligible. Other considerations, particularly ice throw and related risks such as blades breaking off and flying hundreds of feet, are exclusively perceived risks with little evidence to support actual risk. Finally, the assertion that wind energy negatively affects property values is frequently raised as a risk, but for which there is little evidence. Property value impacts are not supported by evidence in market studies, with the exception of some anecdotal evidence where utility-scale wind farms are located near residential properties or where safety setbacks were ignored in areas of urban density. Therefore, the primary regulatory issues for the type of wind development likely to be seen in St. Louis Park include the following: Tower fall zone – While extremely rare, towers of all types have been blown down or damaged in severe weather. Small wind towers are no exception, and most communities address this issue in development regulation. Noise – Wind turbines do create noise, and early versions of small wind turbines created enough noise to exceed nuisance thresholds. Most newer small turbines stay below nuisance noise thresholds (below 50 decibels), but noise is still considered a nuisance risk in most communities that regulate wind energy. Visual impacts – Visual impacts are the most qualitative nuisance risk, but also the most common. In many cases, opposition to wind turbines is rooted almost entirely in the anticipated visual impact the tower has from nearby homes; other issues may be raised, but the visual impact is the lynchpin to most concerns. Visual impacts are also extremely difficult to mitigate except by reducing tower heights, which then reduces the renewable energy value of the installation. Wind Energy Background Report Prepared by CR Planning, Inc. -9- City of Saint Louis Park Incentives in Regulation Identifying regulatory incentives helps meet the first goal for renewable energy development regulation (promoting or encouraging renewable energy in the community). Many cities, including St. Louis Park, have set high-priority goals to improve sustainability, reduce climate- changing emissions, or foster the use of local resources. Renewable energy development can help a community meet all these goals, and is frequently described as an important implementation element for meeting sustainability or climate protection goals. Regulatory initiatives take two forms in land use and development regulation: A. Removing regulatory barriers to renewable energy development, and B. Creating incentives within development regulation. A. Removing regulatory barriers is primarily a process of: 1) identifying where the city’s traditional tools of land use regulation, such as setback requirements, dimensional standards, height requirements, and design standards, conflict with the goal of encouraging renewable energy, and; 2: identifying how regulations can be changed to better accommodate renewable energy without subverting the original intent of the land use regulation. Some forms of renewable energy, such as solar power, are fairly compatible with the urban form of development typically found in St. Louis Park. Solar power does not, in most cases, need to be higher than the primary structure, it makes no noise, and presents virtually no safety risk to surrounding properties. The primary nuisance is one of aesthetics or conflicts with design standards, and the primary resource concern is addressing solar access across property lines. Mitigating tools are readily available for most of these issues. Removing barriers to wind energy systems, however, presents a more difficult set of choices for St. Louis Park. In order to be most effective, wind turbines must be where the wind is best; 50 feet above nearby structures or trees. In light of this need, removing regulatory barriers requires that the City consider the following changes: ¾ Changing in height limitations to allow substantially higher structures (towers) in order to allow capture of the wind resource. ¾ Finding setback compromises that address the tower fall zone, using either a setback standard or a lot size limitation. ¾ Considering impacts on community character in regard to visual impact by identifying areas where towers have significant impact on character or viewshed, and those areas where visual impacts are less significant. B. Creating incentives for renewable energy is a relatively new consideration for local governments. Fortunately, local governments have significant experience with local incentives for other goals, and many of those incentives can be adapted to encouraging renewable energy. Appropriate incentives for wind energy, assuming wind energy can meet community standards for safety, aesthetics, and performance, may include the following: ¾ Regulatory flexibility in new construction ¾ An option for meeting sustainability requirements when the City is a financial partner in a development Wind Energy Background Report Prepared by CR Planning, Inc. -10- City of Saint Louis Park ¾ An option with PUDs ¾ A preference within ‘green’ or high performance building standards, such as LEED. Types of Wind Energy Regulations A discussion of specific regulatory tools and how communities sometimes use these tools follows. Specific examples of how these concepts have been applied can be found in the model ordinance referenced in the text box. Tower Height – Allowing wind turbines on a lot, but limiting tower height to anything less than 80 feet in St. Louis Park is likely to dramatically limit energy productivity. The relationship between tower height and energy production is not linear, but geometric. In urban areas, for instance, a 50% increase in tower height, from 40-feet to 60-feet, may only result in a marginal improvement in production. A 50% increase, from 60-feet to 90-feet, however, may dramatically improve productive value. From the standpoint of sustainability, limiting tower height is a poor way to regulate wind turbines. Sustainability goals are not served by allowing investment in renewable energy, then severely constricting the renewable energy output. Lot Size – Limiting installations of wind energy to lots of an acre or more can address several nuisance issues. An acre or more ensures that installations might be able to meet safety setback requirements, mitigates for noise considerations beyond the lot line, and mitigates some of the visual impact. Community sustainability goals may be compromised if large lots are in poor wind locations, meaning that wind energy installations can only happen through redevelopment at lower density (which may conflict with other sustainability goals). Setbacks – Setbacks are a necessary element of regulating wind energy, except perhaps for building-mounted systems. Setbacks generally need to be at least the height of the tower from either a lot line or a residence (other than the residence on site). Some communities will require a larger setback - 110% or 125% of tower height. Some communities have extended the setback even farther, asking that turbines be 200% of tower height, although there is little quantifiable justification for a 200% setback for small wind installations. Elements of a Wind Energy Conversion System (WECS) Ordinance Counties, cities, and townships are enabled to regulate land use under Minnesota Statutes 394 and 462 for the purpose of: “promoting the health, safety, morals, and general welfare of the community.” How wind energy land use issues affect each type of community will significantly change the structure and focus of the WECS ordinance. Some common elements to consider in all communities are noted below. A. Distinguish between Types of Wind Energy Applications B. Define Necessary Permits C. Establish Setbacks D. Establish Safety Standards E. Establish Design Standards F. Establish Other Applicable Standards G. Minimize Infrastructure Impacts Source: From Policy to Reality: Revised Model Ordinances for Sustainable Development, Minnesota Pollution Control Agency/CR Planning, Inc., 2009 Wind Energy Background Report Prepared by CR Planning, Inc. -11- City of Saint Louis Park District limitations – Wind energy can be restricted, or given preference, by zoning district or overlay district. Communities may, for instance, prohibit wind turbines in higher density residential districts, but make wind turbines a permitted use in industrial and large commercial districts. The overlay concept can be used to restrict wind systems, such as in a scenic view area. Overlays are also used to encourage wind, such as a wind overlay district where wind resources are known to be valuable and wind turbines are given precedence over visual considerations. Performance standard – Performance standards can address many real or perceived nuisances associated with wind turbines. Noise standards, measured at the property line, protect both adjoining landowners from excessive noise and the wind turbine owner from unwarranted complaints. Other standards that communities sometimes set include: ¾ lighting, ¾ protection of natural resource areas, ¾ electromagnetic interference, ¾ maintenance Design standards – In order to mitigate specific visual or safety considerations, some communities will regulate the tower’s appearance or design. Regulated items include: ¾ tower type (monopole, guyed, frame) ¾ tower finish (non-obtrusive color) ¾ prohibiting signage on tower ¾ attractive nuisance – no unsecured ladders on towers or fencing around ladders ¾ design and location of ancillary structures and facilities (power lines, battery storage, etc). Productivity standards – The performance of the wind turbine, in terms of how productive the turbine is at producing electricity, would not normally be a regulatory issue. Productivity generally affects only the owner. Given, however, that the City is considered two regulatory goals (regulating nuisances and improving sustainability) productivity becomes an important Wisconsin Small Wind Model Ordinance 00.05 Standards. A small wind energy system shall be a permitted use in all zoning districts subject to the following requirements: (1) Setbacks. A wind tower for a small wind system shall be set back a distance equal to its total height from: (a) any public road right of way, unless written permission is granted by the governmental entity with jurisdiction over the road; (b) any overhead utility lines, unless written permission is granted by the affected utility; (c) all property lines, unless written permission is granted from the affected land owner or neighbor. (2) Access. (a) All ground mounted electrical and control equipment shall be labeled or secured to prevent unauthorized access. (b) The tower shall be designed and installed so as to not provide step bolts or a ladder readily accessible to the public for a minimum height of 8 feet above the ground. Source: Small Wind Energy System Ordinance, Focus on Energy Noise Performance Standard D. Sound Pressure Level: On-site Use wind energy systems shall not exceed 55 dB(A) at the property line closest to the wind energy system. This sound pressure level may be exceeded during short term events such as utility outages and/or severe wind storms. If the ambient sound pressure level exceeds 55 dB(A), the standard shall be ambient dB(A) plus 5 dB(A). Source: Sample Zoning Amendments for Wind Energy Systems, Michigan State University Extension, 2008 Wind Energy Background Report Prepared by CR Planning, Inc. -12- City of Saint Louis Park consideration. Sustainability is not improved by a wind turbine that does not produce any electricity, or the produces at rate that the owner would have been better off putting in a solar system, efficiency measure, or other sustainability investment. The productivity of micro turbines, building mounted systems, and other alternative technologies are particularly prone to dramatic underperformance. If the City is considering incentives to encourage wind energy, productivity is very important. The City is a partner in the installation and should get a reasonable ‘return’ on its partnership. Installers should provide an estimate of annual production, and production should be monitored to ensure that claimed benefits occur. Regulatory Conclusions St. Louis Park should consider the following regulatory issues: ¾ Wind locations. Where in St. Louis Park might full height (80 - 120 feet) towers for small wind be located without having significant impact on surrounding land uses? Do such locations exist, and if so should wind energy systems be given preference over visual impacts on neighbors? ¾ Land use limitations. What limitations should be placed on wind energy as a land use outside areas that can accommodate full size towers? A number of tools can be used to limit wind energy installations, including designating wind systems as only allowed in specific districts, limiting installations by lot size of the primary use, setback requirements, and limiting height. ¾ Performance standards. What performance standards should the City consider for small and micro-wind systems? Performance standards can be used to both mitigate nuisances and protect wind turbine owners by setting a clear standard against which they can be measured. ¾ Productivity. Should the City consider, in developing ordinances, the productivity of the system? In other words, should the City discourage wind turbines that have questionable productivity, including building-mounted micro-turbines or wind turbines on short (35- 60 foot) towers? ¾ Incentives. Is the City considering incentives or other encouragement for renewable energy installations? If so, the City should consider performance standards that ensure that the City is getting benefit for the incentive; is the renewable energy installation providing real renewable energy benefit? ¾ Large turbines. What standards should be in place to evaluate a conditional use application for a larger wind turbine on a large commercial or industrial site? Meeting Date: January 25, 2010 Agenda Item #: 4 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: 2010 Utility Rate Study Discussion Continuation. RECOMMENDED ACTION: This is the second discussion regarding potential changes in the City’s utility rate structure based on the rate study performed by city staff and the city’s financial advisor Ehlers & Associates. Staff’s goal for Monday’s study session is to present additional information on the current state of our utility enterprises and funding needs as it relates to our utility rates and related capital projects. In addition, staff is proposing some suggested rate increases within the utility funds. Council direction from this discussion will be then used by staff to prepare for either additional discussion with Council or to prepare to amend the 2010 utility rates and plan for 2011 and beyond. POLICY CONSIDERATION: As the Council reviews the information presented staff has raised the following policy questions: • Does the City Council concur with the proposed utility rates for residential, commercial and irrigation rates for the Water Fund? • Does the City Council concur with the proposed utility rate changes in the Sewer, Solid Waste and Storm Sewer funds? • Does the Council concur with staff’s recommendation to continue the analysis in 2010 regarding commercial rates and further analyze the option of tiering for water usage? BACKGROUND: This is a continued discussion from the January 11 Study Session. This report covers the following topic areas: 1. Information requested at the January 11th meeting: a. How are other cities financing their capital improvements? b. How much borrowing capacity does the City have? c. How would utility rates change by issuing more debt? 2. Water Fund Analysis. Adjustments to our rates need to be implemented in 2010 as follows: a. Commercial usage rates - do not change significantly at this time - continue study in 2010 regarding rates and tier options b. Residential fixed rate changes by March or April 2010 c. Residential tiered rate changes by March or April 2010 d. Commercial fixed and usage rate changes by March or April 2010 e. Irrigation usage rate changes by March or April 2010 Meeting of January 25, 2010 (Item No. 4) Page 2 3. Solid waste analysis. Implement rate adjustment by March or April, 2010 and continue with pay as you throw plan. 4. Storm Sewer Analysis. Increase fixed quarterly fee by March or April, 2010. 5. Sanitary Sewer Analysis. Increase fixed rate and usage rate by March or April, 2010. How are Other Cities Financing Their Capital Improvements? From the information prepared by Ehlers, the City of St. Louis Park has relatively low utility debt outstanding per capita when compared to some other communities. This amount includes the $4 million bond issue for the Municipal Service Center undertaken in 2008. Even factoring this in, the City of St. Louis Park still is very favorable in terms of its debt. $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 St. Louis Park Richfield Edina Plymouth Chanhassen Brooklyn Park Hopkins Per Capita Utility Debt Outstanding How Much Borrowing Capacity Does the City Have? One calculation the City prepares each year as part of its financial reporting is called the Legal Debt Margin. This calculation determines our statutory bonding capacity. Currently, the City of St. Louis Park is utilizing less than 2% of its available bonding capacity that is applicable to the Legal Debt Margin. This places the City in a sound financial position to issue more debt based on Council direction in the future if the need arises. How Would Utility Rates Change by Issuing More Debt? From the January 11th meeting, staff and Ehlers proposed that the City would need to issue debt in the Water, Sewer and Storm Sewer funds, especially in the near term, due to large capital projects scheduled. For future capital needs, staff and Ehlers are not recommending the issuance of debt for most years due to the relatively small issuances that would be needed and due to the cost associated with issuance costs, underwriting fees, etc. Rather, it is recommended that utility rates be adjusted so they are sufficient to cover these capital needs and meet cash availability targets. In analyzing how rates may change by issuing debt for all capital, no adjustments to rates would be able to occur until Meeting of January 25, 2010 (Item No. 4) Page 3 at least 2012 and then the rate adjustments downward would be nominal. Therefore a hybrid approach of issuing debt early on and then utilizing a pay as you go method in future years would seem to be the most appropriate. Commercial water usage rates - continued analysis needed As noted below, staff is recommending an adjustment to the fixed rate and water usage rate for commercial users commensurate with rate increases for residential users. However, after discussion and further review staff is recommending that more time be given to analyzing commercial rates for water usage, and particularly for large water users, before any significant rate changes are made. Such analysis will include a more in-depth review of creating tiers for this type of user or continue with one rate structure. It is staff’s feeling that a more thorough analysis and information sharing with Council is necessary and will provide for a more informed policy decision and subsequent rate structure that is effective, competitive and defensible for the long-term. Staff will provide more information on this at the Study Session Proposed water rate changes: residential, commercial and irrigation Proposed Residential Fixed Rates: • The charge for residential water meter service, which is a fixed fee to offset the cost of making water available to residential customers, is proposed to increase by 7%. The dollar amount increase is based on the size of the meter. Over 97% of residential customers would see an increase of $0.41 to $0.74 per quarter in this charge. Proposed Residential Tiered Rates: • Tier One-Usage to 40 units, or 30,000 gallons per quarter, charged at $1.29 per unit from $1.21 in 2009 or 7%. • Tier Two-Usage over 40 to 80 units, or 30,000 to 60,000 gallons, charged at $1.62 per unit from $1.51 in 2009 or 7%. • Tier Three-Usage over 80 units, or over 60,000 gallons, charged at $2.43 per unit from $2.27 in 2009 or 7%. Proposed Commercial Fixed and Usage Rates: • The charge for commercial water meter service, which is a fixed fee to offset the cost of making water available to commercial customers, is proposed to increase by 12.5%. This rate increase has not been changed in over 8 years, which is why the increase is more significant than the residential change. The dollar amount increase is based on the size of the meter, but will range from $0.45 to $8.07 per month. Over 88% of commercial customers would see an increase of $0.45 to $1.47 per month in this charge. • Increase base usage rate from $1.21 per unit to $1.29 per unit. Irrigation Usage Rates: • Based on the utility rate study and DNR guidelines, it could be argued that irrigation water usage should be set at the highest rate that a city charges. By following this suggestion the irrigation usage rate would double. Staff felt it would be prudent to not impact users all in Meeting of January 25, 2010 (Item No. 4) Page 4 one year, but rather phase the increase in over two years. Therefore, it is proposed that the irrigation usage charge increase from $1.21 per unit to $1.82 per unit, or 50% and phase in the other portion of the increase in 2011. Sewer Fund Analysis This fund was in a position of a slightly decreasing cash balance last year. However, due to a change in MCES charge allocation by the Met Council, which increased the City’s costs, and the continuing need for capital improvements to our aging infrastructure, more financial pressures are being placed on this enterprise. This fund utilizes a combination of pay as you go and bond financing for its capital needs with debt being projected to be issued in years 2012, 2018 and 2019. These are years with larger capital expenditures when bonding would be reasonable. The sewer fund is not subject to the mandate of imposing conservation rates. Proposed Rate Changes For the Sewer Fund, the recommended changes are as follows: • Quarterly sewer service charge – which is the fixed fee of making sanitary sewer service available, be increased 7% from $10.65 per quarter to $11.40 per quarter. • The sanitary sewer rate - 10% increase from $2.01 to $2.21 per unit of water used. The sewer rate is calculated based on the customer’s winter water consumption. Solid Waste Analysis This fund has a fairly stable financial position and, without any significant increases in costs, the fund will be sustainable in the foreseeable future. The solid waste service functions as a pay-as-you- throw ranging from 30 gallon service to 540 gallon service. There are 30 gallon rate increments from 30 to 270 gallon service and above that, the increments are in 90 gallon increments to a maximum of 540 gallons. In 2009, new categories of service between 90 and 270 gallons were created. This was done to accomplish a rate structure so that each 30 gallons of service receives a 2010 proposed $11.65 incremental increase in the disposal costs up from $11.20, or 4%, from 2009. For 2010, rates excluding sales tax will range from $42.85 for 30 gallon service to $240.86 for 540 gallon service. This fund only has one proposed capital investment, which is in 2011, and has adequate cash reserves to finance this activity without issuing debt or compromising the fund’s financial position. Storm Sewer Analysis This fund has a stable, but lower, cash balance. This is not unusual for storm sewer funds. Any future ongoing capital improvements may require the use of debt such as 2010 where capital needs are projected to be approximately $1.3 million. In future years, projected capital costs drop significantly and are projected to remain relatively stable, thereby allowing cash reserves within the fund to finance the projects. Revenues are based on a fixed quarterly fee based on the type of property being served. The quarterly charge is established to pay for the cost of operating and maintaining the system. For 2010, a proposed increase in the rate to $14.50 per quarter. This is a $1.00 increase, or 7.4% from the 2009 rate of $13.50. Rate increases will need to continue over the next several years to maintain a positive and healthy cash balance. Meeting of January 25, 2010 (Item No. 4) Page 5 Overall Rate Impact on Single Family Home As noted in the Utility Rate Study, for a residential property with a 60 gallon cart refuse service the cumulative increased cost per quarter would be as follows: • Average user (28,500 gallons of water/quarter) - $15.21/quarter • High user (60,000 gallons of water/quarter) - $28.03/quarter FINANCIAL OR BUDGET CONSIDERATION: This discussion is intended to clarify how the City may need to adjust utility rates to ensure long- range stability in repairing and maintaining our system without requiring dramatic rate changes in any one year. The suggested rates are also intended to provide some equity in distributing the cost of services among users. The suggested timeframe for discussing the matter is as follows: • January 25 Study Session – continued discussion from January 11th on rate study • February or March – adopt new rates for Residential and Commercial Water, Sewer, Solid Waste and Storm Sewer effective March 2010 • February - communication of new rates • 2010 continued study and work with Council on changes to the commercial rates • Budget process for 2011 – review and adopt new rates to be in place for January 1, 2011 Attachments: None Prepared by: Brian A. Swanson, Finance Manager Reviewed by: Nancy Gohman, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Meeting Date: January 25, 2010 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: Planning Commission 2009 Annual Report and 2010 Work Plan. RECOMMENDED ACTION: This report summarizes work performed by the Planning Commission in 2009 and outlines the intentions of Planning Commission work to be completed in 2010. The Planning Commission and planning staff request feedback and guidance from Council regarding the reports. POLICY CONSIDERATION: • Are the actions of the Planning Commission in alignment with the expectations of the City Council? • Does the City Council wish to meet with the Planning Commission to discuss their annual report and work plan? BACKGROUND: The Planning Commission advises the City Council in matters concerning comprehensive planning, zoning, platting, street changes, and general planning and development. This Commission may also hold public hearings on certain issues. The commission consists of seven regular members and one non-voting youth member. Meetings are held the first and third Wednesday of each month at 6:00 p.m. Planning Commission meetings are shown live on Civic Cable TV Channel 17. Meetings are also replayed on Wednesdays - 8:00 a.m., 2:00 p.m. and 2:00 a.m. and Fridays - 8:00 a.m., 2:00 p.m. and 2:00 a.m. In accordance with Council policy, the 2009 Annual Report and 2010 Work Plan are attached in full for City Council review at the January 25 study session. FINANCIAL OR BUDGET CONSIDERATION: Not Applicable. VISION CONSIDERATION: The 2010 Planning Commission Work Plan primarily addresses all of the Strategic Directions: being a connected and engaged community; being a leader in environmental stewardship; providing a well- maintained and diverse housing stock; and promoting and integrating arts, culture and community aesthetics in all city initiatives. Attachments: Planning Commission 2009 Annual Report and 2010 Work Plan Planning Commission Bylaws Prepared by: Meg J. McMonigal, Planning and Zoning Supervisor Approved by: Tom Harmening, City Manager Meeting of January 25, 2010 (Item No. 5) Page 2 St. Louis Park Planning Commission 2009 Annual Report Prepared by the City of St. Louis Park Community Development Department Meeting of January 25, 2010 (Item No. 5) Page 3 2009 St. Louis Park Planning Commission Robert Kramer, Chair Richard Person, Vice-Chair Lynne Carper Andrew Ford, Youth Member Claudia Johnston-Madison Dennis Morris Carl Robertson Larry Shapiro, School Board Representative St. Louis Park Planning Staff Meg J. McMonigal, Planning and Zoning Supervisor Sean Walther, Senior Planner Gary Morrison, Assistant Zoning Administrator Adam Fulton, Planner Nancy Sells, Administrative Secretary Meeting of January 25, 2010 (Item No. 5) Page 4 In 2009, the Planning Commission held public hearings on numerous applications. The cases are listed by type, and the projects are described in the paragraphs to follow. Applications Processed 2006 2007 2008 2009 Comprehensive Plan Amendments 4 1 1 2 Conditional Use Permits 14 8 9 5 Planned Unit Developments 3 5 5 4 Re-zonings 2 2 2 2 Subdivisions 11 7 5 1 Variance 7 1 5 2 Zoning Code Amendments 3 3 5 0 Major Development and Redevelopment Projects that came before the Planning Commission in 2009 are briefly summarized below: The West End – Amended PUD and Variance – The Planning Commission reviewed amendments to the Planned Unit Development for the sign plan and a variance for signage. Wooddale Pointe – Amended PUD, Subdivision – The Commission recommended approval for an amended PUD to reduce the amount of units with changes to the site plan. The subdivision was amended with easement variances. Marriot Hotel – Preliminary Planned Unit Development, Subdivision – The Planning Commission recommended preliminary approval for construction of a new 162 room, 7-story hotel adjacent to the 600 tower in the Metropointe Office Complex. Benilde-St. Margaret’s Athletic Facility Improvements – The Planning Commission recommended approval of an amended special permit to reconfigure and reconstruct athletic facilities and improve stormwater. Groves Academy – An amendment to a special permit was approved to enlarge the school facility. Municipal Service Center – The Planning Commission recommended approval of an amendment to a special permit to construct improvements to the City’s Public Works and Parks maintenance facility. Galaxy Drive In – A Comprehensive Plan amendment and rezoning from residential to commercial were recommended for approval to remove one single family home for parking. Meeting of January 25, 2010 (Item No. 5) Page 5 Comprehensive Plan The Planning Commission was charged with the primary responsibility for updating the 2030 Comprehensive Plan. Over the past two years the Commission spent 15+ meetings reviewing, discussing and modifying the plan. A public hearing was held by the Commission on Dec. 2, 2009. The following meetings were held by the Commission throughout 2009: February 4, 2009 Study Session • Parks, Rec and Open Space Plan • Transportation • Land Use Discussion (Business Park, Mixed Use, Land Use Changes) • Public Engagement Process March 4, 2009 Study Session • Land Use Planning • Parks, Open Space and Natural Resources Plan • Plan by Neighborhood Public Process April 1, 2009 Study Session • Transportation Plan • Sewer, Water and Solid Waste Plans • Housing Plan April 15, 2009 • Housing chapter • Land Use update • Schedule update May 6, 2009 • Land Use and Redevelopment • Public Input Process • Timing for draft plan May 20, 2009 Study Session • Discuss land use chapter and sending draft out for review June 3, 2009 Study Session • Highlights for Land Use and Redevelopment July 15, 2009 Study Session • Neighborhood Planning Process report with HKGi Meeting of January 25, 2010 (Item No. 5) Page 6 September 16, 2009 Study Session • Land Use map changes • Plan by Neighborhood – next steps • Studies and Implementation Steps November 4, 2009 Study Session • Land Use map changes • Business Park • Next steps and schedule November 18, 2009 Study Session • Goals and policies: Land Use, Economic Development and Redevelopment, Housing, Highways and Streets, Bicycles and Pedestrians, Transit • Next steps and schedule Plan by Neighborhood As a means to update the Plan by Neighborhood chapter and gain neighborhood input on the draft version of the updated Comprehensive Plan, the City undertook a neighborhood input process in Spring 2009. The neighborhood input process was organized around seven neighborhood planning areas that grouped the 35 neighborhoods into geographic areas. Southwest LRT Station Area Planning The Planning Commission worked throughout the year to assist the work being completed by Hennepin County on the initial Station Area Planning for the Southwest Light Trail transit line. The Planning Commission reviewed work completed by the County’s consultant, Hay Dobbs; attended public meetings related to the Station Area plans in May and August; and took part in a tour that included a review of the station areas within St. Louis Park. As work continues on the Meeting of January 25, 2010 (Item No. 5) Page 7 Southwest Light Rail project, the Planning Commission expects to stay closely involved with issues related to transportation and land use around the future station sites. Meeting of January 25, 2010 (Item No. 5) Page 8 St. Louis Park Planning Commission 2010 Work Plan 1. Review Planning Applications – Hear applications for Conditional Use Permits (CUPs), Planned Unit Developments (PUDs), Comprehensive Plan Amendments, Rezonings, Preliminary Plats and variances. Hold public hearings, discuss planning impacts, and make recommendations to the City Council. Potential and Continuing Applications: West End (Duke) Redevelopment Gateway Retail – Comprehensive Plan land use amendment and rezoning Two fire stations Subdivision – PBK – L.A. Fitness site Final Approvals: Galaxy Drive-In – Conditional Use Permit and lot combination Marriot – Final PUD 2. 2030 Comprehensive Plan – Complete Plan by Neighborhood Section by spring 2010. Hoisington Koegler Group Inc. is completing the 35 individual neighborhood plans. These will incorporate information from the Comprehensive Plan and the public input process from 2009. When completed, plans will be shared with neighbors and adopted into the overall Plan. 3. Updates to the Zoning and Subdivision Ordinance – Continue work to update the Zoning and Subdivision Ordinances, including electronic signs, wind energy systems, business park zoning district, and land use changes resulting from the Comprehensive Plan Update. 4. Special Studies A. Lake Street area - Louisiana to Wooddale Avenue As prioritized by the City Council, the Planning Commission will participate in studying the Lake-Walker area near the high school as the first of the “commercial nodes and corridors” studies. The purpose of the study is to look at the market conditions, circulation, infrastructure, buildings, mix of uses, connectivity and image to plan for the appropriate type and amount of commercial development and to determine what the city can do to help the private market succeed. Meeting of January 25, 2010 (Item No. 5) Page 9 B. Southwest LRT Station Area Planning Over the last year and one half Staff has worked on a Hennepin County funded Station Area Planning Study. This initial plan is just completed and a number of items from it are being incorporated in the Comprehensive Plan update. Hennepin County has designated the corridor as a County “Community Works” project. This will allow continued planning with the communities along the LRT line, and provide for the potential for funding infrastructure improvements. Areas needing future study in St. Louis Park include looking closely at the circulation and access and development/market opportunities. Staff will continue to work on these areas continuously over the next two to five years. The City will continue to be involved with the parallel SWLRT planning process in the next several years as well. Hennepin County will finalize the Draft Environmental Impact Statement (DEIS) process, and then the project will be turned over to the Metropolitan Council and the Preliminary Engineering (PE) phase will begin. It is expected there will be staff groups to work on details of the route and station area planning at this level also. Continued work on the SWLRT station areas will include Planning Commission input and consideration, particularly on transportation and land use issues. C. Freight Relocation Study by Hennepin County Hennepin County will be undertaking a study to relocate the TC&W route from an east-west line in St. Louis Park to the north-south Canadian Pacific rail line through the northern part of St. Louis Park. If traffic is moved to this line, some of the tracks and bridges will likely have to be rebuilt and/or reconfigured. This will have significant community impacts for circulation. Public process is expected with this study, and it is expected the Planning Commission will be informed and involved as it moves forward. Meeting of January 25, 2010 (Item No. 5) Page 10 Planning Commission Adopted August 6, 1969 City of St. Louis Park, Minnesota Revised June 19, 1989 Revised November 18, 1992 Revised February 21, 2001 Revised May 18, 2005 Revised January 3, 2007 ST. LOUIS PARK, MINNESOTA PLANNING COMMISSION BY-LAWS Article I -– The Commission Section 1. The name of the Commission shall be the “Planning Commission”. Section 2. The planning commission shall have the following powers and duties to: (1) Prepare a comprehensive plan for the future development of the city to be submitted to the city council for implementation and to maintain such plan and recommend its amendment to the city council as may become necessary. (2) Initiate, direct and review, from time to time, a study of the provisions of the zoning chapter and the subdivision regulations and to report to the city council its advice and recommendations accordingly. (3) Study applications and proposals for amendments to the zoning chapter and applications for special permits and to advise the city council of its recommendations. (4) Study preliminary and final plats and to advise the city council of its recommendations. (5) Submit to the city council by April 1 of each year an annual report of the activities of the commission during the previous year. (6) Submit an annual work plan to the city council that details activities and projected timelines for the calendar year. The Community Development Department will develop the work plan for approval by the commission. (7) Act in an advisory capacity to the city council in all matters wherein powers are assigned to the city council by state law or city Charter concerning land use, comprehensive planning, zoning, platting, changes in streets and other matters of a general planning nature. Article II - Officers and Their Duties Section 1. At its first meeting of each calendar year, the Commission shall elect from its membership a Chair and a Vice-chair. The Chair position shall rotate annually. The staff liaison shall be the Secretary of the Commission. Section 2. The Chair and Vice-chair shall take office immediately following their election and shall hold office for a term of one year and until their successors are elected and assume office. Section 3. The Chair shall preside at all meetings, appoint committees, and perform such other duties as may be ordered by the Commission Section 4. The Vice-chair shall act in the capacity of the Chair in the absence of the Chair. In the event the office of the Chair becomes vacant, the Vice-chair shall become Chair, and the Commission shall elect a successor to the office of Vice-chair for the unexpired term. Meeting of January 25, 2010 (Item No. 5) Page 11 Section 5. A staff liaison to the Planning Commission shall be designated by the city manager and shall be subject to the administrative rules and regulations of the city. The staff liaison may facilitate or assist in the meetings and shall be responsible for recording attendance of commission members. The staff liaison is responsible for keeping the city manager informed regarding the business of the commission and shall communicate to the city manager any problems or issues that may arise. The staff liaison shall also be responsible for assisting the commission in considering their financial needs and, if deemed necessary by the commission, shall request appropriate funding from the city council through the annual budget process. Article III-Election of Officers Section 1. Nomination of officers shall be made by the members of the Commission present at the annual organization meeting and the elections shall follow immediately thereafter. Section 2. A candidate receiving the vote of a majority of the entire membership of the Commission shall be declared elected. Section 3. Vacancies in offices shall be filled by regular election procedures for the unexpired term. Article IV -Meetings Section 1. All regular and special meetings, records, and accounts shall be open to the public and conducted in accordance with the Minnesota Open Meeting Law. Section 2. The annual organization meeting of the commission shall be the first regular meeting of the year at which time elections will be held and the schedule for the following year’s regular meeting schedule will be considered. Section 3. The Commission shall hold regular meetings on the first and third Wednesday of each month at 6:00 p.m., provided however, that when the day fixed for any regular meeting of the Commission falls upon any of the following holidays: Ash Wednesday, Chanukah, Christmas, Veterans Day, Independence Day, New Year's Day, Passover (first two nights), Rosh Hashanah, and Yom Kippur, such meeting shall be held at the same hour on the next succeeding Wednesday not a holiday. (For Chanukah, Christmas, Passover, Rosh Hashanah and Yom Kippur, the holiday includes the evening before the holiday.) All regular meetings of the Commission shall be held in the City Hall of the City or other public building as noticed. The commission may, by a majority vote, change the regular meeting dates for any reason provided proper public notice of the changed meeting is provided to the public. Section 4. The Chair or any two members of the Commission may call a special meeting of the Commission after having given notice not less than three days in advance of such meeting to each member of the Commission. Such notice shall provide the date, time, place and purpose of meeting and be delivered personally to each member or be left at the member's usual place of residence with a person of suitable age and discretion then residing therein, or written notice thereof shall be left in a conspicuous place at the residence if no such person be found there. If however, all commissioners attend and participate in the meeting, these notice requirements are not necessary. The presence of any commissioner at a special meeting shall constitute a waiver of any formal notice unless the commissioner appears for the special purpose of objecting to the holding of such meeting. Notice of the date, time, place and purpose of a special meeting must also be posted by the secretary on the principal bulletin board of the city at least three days prior to the date of the meeting. Section 5. A quorum shall consist of a simple majority of the members eligible to vote on matters before the Commission. Without a quorum, the meeting cannot be opened, and Planning Commission business or voting cannot be conducted. Passage of any matter before the Commission shall require the presence of a quorum and the affirmative vote of a majority of the quorum. Section 6. Voting on regular motions shall be by voice and will be recorded by yeas and nays unless a roll call is requested by a member of the Commission. Meeting of January 25, 2010 (Item No. 5) Page 12 Section 7. In all points not covered by these rules, the Commission shall be governed on its procedure by Sturgis Standard Code of Parliamentary Procedure. Section 8. All meeting minutes, records and accounts shall be in writing kept in accordance with MN Statute and Rules regarding preservation of public records and the MN Data Privacy Act. Section 9. No member of the Commission shall discuss or vote on any question in which the member has a direct or indirect financial interest. Section 10. Commissioners should only communicate on issues pending or before the Commission during scheduled Commission meetings. If a Commissioner wishes to transmit information regarding the business of the Commission, the Commissioner should present it to the Staff liaison or other Community Development Department staff for distribution to the Commissioners. Section 11. Any Commissioner that is unable to attend a scheduled meeting of the Commission may submit written comments pertaining to an item on the agenda to the Community Development Director or the Secretary of the Commission for distribution to the Commissioners prior to the meeting or at the meeting and may request that such comments be attached as an addendum to the minutes of the meeting. Article V - Order of Business Section 1. The order of business shall be as follows: 1. Roll Call 2. Approval of Minutes 3. Hearings 4. Unfinished Business 5. New Business a. Consent Items b. Other New Business 6. Communications 7. Miscellaneous 8. Adjournment Section 2. Unless objection is made by motion of the Commission, the Presiding Officer may modify the foregoing order of business in order to accommodate citizens present or to expedite the business of the Commission. Section 3. Unless a reading of the Commission meeting minutes is requested by a member of the Commission, such minutes may be approved without reading if the secretary has previously furnished each member with a copy thereof. Section 4. Unless there is objection from the Commission, Staff or anyone in attendance at the meeting, Consent Items may be acted upon without discussion. Section 5. The case before the Commission shall be presented in summary by Planning staff or a designated member of the Commission and parties in interest shall have privilege of the floor thereafter. In those instances where the matter is considered non-controversial and does not warrant a summary, the Presiding Officer may entertain a motion without presentation of the summary, unless an objection is expressed by anyone present. Section 6. The Commission may postpone any case or continue any case for further study and information until the next regular meeting unless otherwise designated. Section 7. Any person desiring to address the Commission shall first secure the permission of the Presiding Officer to do so. Meeting of January 25, 2010 (Item No. 5) Page 13 Section 8. Each person addressing the Commission, shall, if requested by the Presiding Officer, step up in front of the rail, shall give his/her name and address in an audible tone for the records, and unless further time is granted by the Presiding Officer, shall limit his/her remarks to five minutes. All remarks should be addressed to the Commission as a body and not to any member thereof. No person, other than the Commission and the person having the floor, shall be permitted to enter into any discussion, either directly or through a member of the Commission, without the permission of the Presiding Officer. No question shall be asked a Commission member except through the Presiding Officer . Section 9. No person, except City Officials and their representatives, shall be permitted on the elevated portions of the Council Chambers without the express consent of the Commission. Article VI - Hearings Section 1. In addition to those required by law, the Commission may, at its discretion, hold public hearings when it declares such hearings will be in the public interest. Section 2. In the event of a public hearing, notice of such hearing shall be published in the official newspaper of the municipality not less than ten days before the time of the hearing. Article VII - Attendance and Performance of Duties Section 1. Regular attendance at meetings is a requirement for continued membership. Commission members are expected to attend regular and special commission meetings and assigned committee meetings. Planned absences communicated to the commission chair or committee task force chair in advance of the meeting will be deemed excused. Any other absence will be deemed unexcused. The commission will approve and record the approval of all excused and unexcused absences. Section 2. Council will be informed if a member receives three unexcused absences in any calendar year, if a member attends scheduled meetings irregularly or if a member is frequently absent from scheduled meetings. Section 3. Commissioners are expected to adequately prepare for meetings. Commissioners unable to complete an assigned task should notify the commission chair or task force chair as soon as possible. The commission may ask the Council to review a member's appointment based upon its assessment of significant non-performance of duties. Article VIII - By-laws and Rules Section 1. These by-laws are subject to the City Council’s Rules and Procedures for Boards and Commissions, amended by Resolution 06-148 on September 18, 2006 and Chapter 2, Administration, the St. Louis Park City Code. Section 2. Written notice of proposed changes to the Planning Commission by-laws shall be provided to Commissioners thirty days prior to formal action by the Commission. These rules may be amended at any regular or special meeting by an affirmative vote of a majority of the entire membership. The City Council has thirty days to take action to modify the by-laws or amendments approved by the Commission. Meeting Date: January 25, 2010 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: Communications (Verbal). RECOMMENDED ACTION: Not Applicable. POLICY CONSIDERATION: Not Applicable. BACKGROUND: At every Study Session, verbal communications will take place between staff and Council for the purpose of information sharing. FINANCIAL OR BUDGET CONSIDERATION: Not Applicable. VISION CONSIDERATION: Not Applicable. Attachments: None Prepared and Approved by: Tom Harmening, City Manager Meeting Date: January 25, 2010 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: November - December, 2009 Monthly Financial Reports. RECOMMENDED ACTION: No action required at this time. POLICY CONSIDERATION: None at this time. BACKGROUND: This report is designed to provide summary information regarding 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. Through the month of November, actual expenditures should generally not exceed about 92% of the annual budget. At the end of November, the General Fund had expenditures totaling 86% of the revised budget and the Park and Recreation Fund expenditures were at 87%. This continued the trend for the year in that both of these figures were not only below the general expected level, but they were also below the prior year comparable figures of 87% and 99% respectively. Through the month of December, General Fund revenues for 2009 are at 99% of budget, while expenditures are at 94.5%. Park & Recreation revenues are at 95%, while expenditures are at 93% of budget. Park & Recreation revenues may increase slightly as year end receivables are booked for ice time. While this report does not represent the final year end numbers for December 31, 2009, it does indicate that the City should end the year with a positive change in fund balance in both of these funds. Invoices for 2009 expenses will continue to be recorded through mid February, and year end audit entries will be completed over the next few months. The final audited financial statements for 2009 will be presented at a separate Council meeting in the spring of 2010. Significant variances from the revised budget for both revenues and expenditures are highlighted below accompanied with a general discussion of reasons for the variance. Meeting of January 25, 2010 (Item No. 7) Page 2 General Fund Revenues: • General Fund property tax revenues will slightly exceed 100% of budget due to an additional $570,000 that was received with our second half tax settlement relating to two decertified TIF districts. The Oak Park Village and Excelsior Boulevard districts were both decertified on July 31, 2009. The City received an amount in the second half settlement equal to approximately 36% of what would normally have been received as increment for these two districts as they come back on the regular property tax rolls. If not for this, General Fund property tax revenues would have fallen short of budget by 2%. Staff has been concerned that this revenue source could potentially fall short of the 99% that we have generally collected in prior years because of increasing delinquencies county-wide and the increase in commercial tax court petitions which have the ability to reduce taxes retroactively. • License and permit revenues will exceed budget by almost 11%. Liquor license revenues under the Administration Department fell short of budget by $46,000. However, Inspections Department revenues continued to be strong throughout the year and will exceed projections by 15%. • Charges for Services revenue looks low for the year, however, this is primarily due to year end entries that will be made to reimburse Public Works Engineering time spent on capital projects. • While interest earnings are not allocated until the end of the year, it is likely that this source of income will be down significantly, probably about $150,000 below budget, with short term rates staying well below 1%. Accordingly, the 2010 interest income budget has been revised downward to account for the fact that interest rates may not improve in the near future. Expenditures: • Communications & Marketing Services and Other Charges exceed budget at about 119% for the year, but this reflects the full cost of the combined Park & Recreation brochure and Park Perspective. The 2009 budget for IR did not assume paying for the full cost of the combined Park and Recreation and Park Perspective publication. As such, savings are shown in the Park and Recreation budget relating to the cost of the Park and Recreation publication. Parks and Recreation Revenues: • Revenues for the Rec Center Division will be lower than last year due mainly to the cool weather conditions over the pool season. For the 2010 budget, we have reduced the aquatic park revenue projection to account for the fact that this revenue source can fluctuate significantly depending on the weather. Meeting of January 25, 2010 (Item No. 7) Page 3 Expenditures: • Environmental Division expenditures have exceeded 100% of budget primarily because of tree removals. While the number of tree removals is down a bit this year, the diameter of the trees being removed due to disease are larger making the cost more. The Services and Other Charges expenditures, where the direct tree removal charges are identified, are over budget by 70%. This issue has been addressed in the 2010 budget through an addition in budgeted expenditures for tree removals. FINANCIAL OR BUDGET CONSIDERATION: None at this time. VISION CONSIDERATION: Not applicable. Attachments: Monthly Financial Reports Prepared by: Darla Monson, Senior Accountant Reviewed by: Brian Swanson, Finance Manager Approved by: Tom Harmening, City Manager 1/19/2010CITY OF ST LOUIS PARK 13:24:55R5509FIN1 LOGIS001 1Monthly Financial Report Page -By Co (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 01000 GENERAL FUND 4000 REVENUES & EXPENSES 4001 REVENUES 4010 GENERAL PROPERTY TAXES 14,653,275.00- 7,701,788.85- 14,910,782.16- 257,507.16 101.76 |14,107,179.00-13,235,208.58- 93.82 4100 LICENSES & PERMITS 2,515,000.00- 154,363.80- 2,790,701.89- 275,701.89 110.96 |2,712,715.00-4,115,212.91- 151.70 4270 FINES & FORFEITS 312,000.00- 18,309.30- 307,631.23-4,368.77- 98.60 |311,000.00-325,102.43- 104.53 4300 INTERGOVERNMENTAL 1,647,214.00- 27,934.29- 1,428,821.82- 218,392.18- 86.74 |1,709,365.00-1,903,239.88- 111.34 4600 CHARGES FOR SERVICES 1,201,900.00- 79,387.47- 718,772.15- 483,127.85- 59.80 |1,084,975.00-1,082,300.92- 99.75 5200 MISCELLANEOUS 100,000.00-7,083.33- 145,183.55- 45,183.55 145.18 |100,000.00-131,199.96- 131.20 4001 REVENUES 20,429,389.00-7,988,867.04-20,301,892.80-127,496.20-99.38 |20,025,234.00-20,792,264.68-103.83 6001 EXPENDITURES 6002 PERSONAL SERVICES 18,496,154.00 1,578,681.81 18,152,388.91 343,765.09 98.14 |17,638,555.00 17,554,302.68 99.52 6210 SUPPLIES 766,135.00 53,301.49 617,891.90 148,243.10 80.65 |758,098.00 751,783.18 99.17 6300 NON-CAPITAL EQUIPMENT 70,775.00 14,033.79 56,135.74 14,639.26 79.32 |71,350.00 34,496.02 48.35 6350 SERVICES & OTHER CHARGES 4,160,215.00 299,820.23 3,373,264.38 786,950.62 81.08 |4,258,872.00 3,667,139.95 86.11 7800 CAPITAL OUTLAY 91.02 91.02-| 6001 EXPENDITURES 23,493,279.00 1,945,837.32 22,199,771.95 1,293,507.05 94.49 |22,726,875.00 22,007,721.83 96.84 8001 OTHER INCOME 8010 TRANSFERS IN 2,678,910.00- 219,075.82- 2,628,909.84- 50,000.16- 98.13 |2,555,694.00-2,558,321.10- 100.10 8070 OTHER RECOVERIES 2,000.00- 18,503.19- 22,896.94- 20,896.94 1,144.85 |2,000.00-445.00- 22.25 8100 INTEREST 350,000.00-76,283.34 426,283.34- 21.80- |325,000.00-358,730.24- 110.38 8130 CONTRIBUTIONS/DONATIONS 5,953.00 5,953.00-|700.00- 8170 ADMINISTRATION FEES 125.00- 6,250.00-6,250.00 |5,925.00- 8200 MISC RECEIPTS 651.30-991.80-991.80 |5,952.12- 8001 OTHER INCOME 3,030,910.00-238,355.31-2,576,812.24-454,097.76-85.02 |2,882,694.00-2,930,073.46-101.64 8501 OTHER EXPENSE 8550 INTEREST/FINANCE CHARGES .71 .71-|17.04 8580 MISC EXPENSE 181,000.00 192.35 274.68 180,725.32 .15 |180,650.00 69,777.62 38.63 8590 BANK CHARGES/CREDIT CD FEES 19,000.00 1,633.06 21,402.93 2,402.93- 112.65 |400.00 32,128.44 8,032.11 8501 OTHER EXPENSE 200,000.00 1,825.41 21,678.32 178,321.68 10.84 |181,050.00 101,923.10 56.30 4000 REVENUES & EXPENSES 232,980.00 6,279,559.62-657,254.77-890,234.77 282.11-|3.00-1,612,693.21-********* 01000 GENERAL FUND 232,980.00 6,279,559.62-657,254.77-890,234.77 282.11-|3.00-1,612,693.21-********* Meeting of January 25, 2010 (Item No. 7)Page 4 1/19/2010CITY OF ST LOUIS PARK 13:24:55R5509FIN1 LOGIS001 2Monthly Financial Report Page -By Co (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 02000 PARK AND RECREATION 4000 REVENUES & EXPENSES 4001 REVENUES 4010 GENERAL PROPERTY TAXES 4,073,118.00- 2,036,559.00- 4,073,118.00-100.00 |3,750,197.00-3,750,197.00- 100.00 4100 LICENSES & PERMITS 130.00- 6,865.00-6,865.00 |6,275.00- 4300 INTERGOVERNMENTAL 55,702.00-1,489.07- 66,634.59- 10,932.59 119.63 |56,402.00-86,454.46- 153.28 4600 CHARGES FOR SERVICES 1,141,598.00- 52,288.14- 1,027,848.36- 113,749.64- 90.04 |1,058,170.00-1,093,888.36- 103.38 5200 MISCELLANEOUS 883,000.00- 86,756.31- 698,787.67- 184,212.33- 79.14 |823,061.00-963,342.46- 117.04 4001 REVENUES 6,153,418.00-2,177,222.52-5,873,253.62-280,164.38-95.45 |5,687,830.00-5,900,157.28-103.73 6001 EXPENDITURES 6002 PERSONAL SERVICES 3,503,813.00 254,037.27 3,406,580.27 97,232.73 97.22 |3,403,854.00 3,435,314.79 100.92 6210 SUPPLIES 872,131.00 30,618.98 650,397.42 221,733.58 74.58 |795,292.00 782,613.02 98.41 6300 NON-CAPITAL EQUIPMENT 4,120.00 89.51 998.33 3,121.67 24.23 |4,500.00 3,900.62 86.68 6350 SERVICES & OTHER CHARGES 1,703,002.00 74,447.49 1,614,457.81 88,544.19 94.80 |1,543,904.00 1,850,353.41 119.85 7800 CAPITAL OUTLAY 15,352.00 7,574.25 7,777.75 49.34 |19,000.00 6001 EXPENDITURES 6,098,418.00 359,193.25 5,680,008.08 418,409.92 93.14 |5,766,550.00 6,072,181.84 105.30 8001 OTHER INCOME 8010 TRANSFERS IN |75,000.00-56,599.12- 75.47 8100 INTEREST |1,600.00- 8130 CONTRIBUTIONS/DONATIONS 12,000.00-4,773.00-7,227.00- 39.78 |11,100.00-6,538.00- 58.90 8200 MISC REVENUE 2,890.00-2,890.00 |1,013.17- 8001 OTHER INCOME 12,000.00-7,663.00-4,337.00-63.86 |87,700.00-64,150.29-73.15 8501 OTHER EXPENSE 8510 TRANSFERS OUT |8,981.00 8,981.04 100.00 8550 INTEREST/FINANCE CHARGES 12.97 12.97-|123.76 8580 MISC EXPENSE 871.75 871.75 871.75-|111.80 8590 BANK CHARGES/CREDIT CD FEES 1,134.08 17,580.70 17,580.70-|15,974.72 8501 OTHER EXPENSE 2,005.83 18,465.42 18,465.42-|8,981.00 25,191.32 280.50 4000 REVENUES & EXPENSES 67,000.00-1,816,023.44-182,443.12-115,443.12 272.30 |1.00 133,065.59 ********* 02000 PARK AND RECREATION 67,000.00-1,816,023.44-182,443.12-115,443.12 272.30 |1.00 133,065.59 ********* Meeting of January 25, 2010 (Item No. 7)Page 5 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 1Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 01000 GENERAL FUND 100 GENERAL 4000 REVENUES & EXPENSES 4001 REVENUES 4010 GENERAL PROPERTY TAXES 14,653,275.00- 7,701,788.85- 14,910,782.16- 257,507.16 101.76 |14,107,179.00-13,235,208.58- 93.82 4300 INTERGOVERNMENTAL 45,205.00- 22,602.50- 45,205.00-100.00 |45,205.00-368,917.81- 816.10 4600 CHARGES FOR SERVICES 1,948.60- 2,321.32-2,321.32 |2,662.30- 5200 MISCELLANEOUS 85,000.00-7,083.33- 85,231.75-231.75 100.27 |85,000.00-85,124.16- 100.15 4001 REVENUES 14,783,480.00-7,733,423.28-15,043,540.23-260,060.23 101.76 |14,237,384.00-13,691,912.85-96.17 6001 EXPENDITURES 6350 SERVICES & OTHER CHARGES 1,800.00 1,800.00 1,800.00-|52.50 6001 EXPENDITURES 1,800.00 1,800.00 1,800.00-|52.50 8001 OTHER INCOME 8010 TRANSFERS IN 2,678,910.00- 219,075.82- 2,628,909.84- 50,000.16- 98.13 |2,555,694.00-2,558,321.10- 100.10 8070 OTHER RECOVERIES 18,445.43- 18,445.43- 18,445.43 | 8100 INTEREST 350,000.00-76,285.95 426,285.95- 21.80- |325,000.00-358,726.46- 110.38 8130 CONTRIBUTIONS/DONATIONS 500.00 500.00-| 8001 OTHER INCOME 3,028,910.00-237,521.25-2,570,569.32-458,340.68-84.87 |2,880,694.00-2,917,047.56-101.26 8501 OTHER EXPENSE 8580 MISC EXPENSE 180,000.00 180,000.00 |180,000.00 2,600.00 1.44 8501 OTHER EXPENSE 180,000.00 180,000.00 |180,000.00 2,600.00 1.44 4000 REVENUES & EXPENSES 17,632,390.00-7,969,144.53-17,612,309.55-20,080.45-99.89 |16,938,078.00-16,606,307.91-98.04 100 GENERAL 17,632,390.00-7,969,144.53-17,612,309.55-20,080.45-99.89 |16,938,078.00-16,606,307.91-98.04 Meeting of January 25, 2010 (Item No. 7)Page 6 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 2Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 110 ADMINISTRATION 4000 REVENUES & EXPENSES 4001 REVENUES 4100 LICENSES & PERMITS 215,500.00-125.00- 169,601.96- 45,898.04- 78.70 |178,000.00-180,716.65- 101.53 4270 FINES & FORFEITS 8,000.00-6,750.00-1,250.00- 84.38 |8,000.00-4,000.00- 50.00 4300 INTERGOVERNMENTAL 947.30-947.30 | 4600 CHARGES FOR SERVICES 97.00-97.00 | 5200 MISCELLANEOUS 143.40-143.40 | 4001 REVENUES 223,500.00-125.00-177,539.66-45,960.34-79.44 |186,000.00-184,716.65-99.31 6001 EXPENDITURES 6002 PERSONAL SERVICES 531,500.00 46,601.87 518,011.89 13,488.11 97.46 |511,250.00 525,245.20 102.74 6210 SUPPLIES 3,700.00 756.98 3,364.85 335.15 90.94 |4,350.00 7,113.91 163.54 6350 SERVICES & OTHER CHARGES 455,635.00 40,096.45 402,648.04 52,986.96 88.37 |518,727.00 482,031.12 92.93 6001 EXPENDITURES 990,835.00 87,455.30 924,024.78 66,810.22 93.26 |1,034,327.00 1,014,390.23 98.07 8001 OTHER INCOME 8200 MISC REVENUE 340.50-340.50 |30.00- 8001 OTHER INCOME 340.50-340.50 |30.00- 8501 OTHER EXPENSE 8550 INTEREST/FINANCE CHARGES .71 .71-|8.25 8590 BANK CHARGES/CREDIT CD FEES 4.86 4.86-|24.93 8501 OTHER EXPENSE 5.57 5.57-|33.18 4000 REVENUES & EXPENSES 767,335.00 87,330.30 746,150.19 21,184.81 97.24 |848,327.00 829,676.76 97.80 110 ADMINISTRATION 767,335.00 87,330.30 746,150.19 21,184.81 97.24 |848,327.00 829,676.76 97.80 Meeting of January 25, 2010 (Item No. 7)Page 7 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 3Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 120 FINANCE 4000 REVENUES & EXPENSES 4001 REVENUES 4600 CHARGES FOR SERVICES 50,000.00-4,026.50- 43,939.75-6,060.25- 87.88 |50,000.00-46,911.00- 93.82 5200 MISCELLANEOUS 1,229.36-1,229.36 | 4001 REVENUES 50,000.00-4,026.50-45,169.11-4,830.89-90.34 |50,000.00-46,911.00-93.82 6001 EXPENDITURES 6002 PERSONAL SERVICES 937,200.00 80,685.59 967,400.18 30,200.18- 103.22 |951,407.00 886,402.05 93.17 6210 SUPPLIES 4,225.00 201.44 3,430.72 794.28 81.20 |4,000.00 4,755.15 118.88 6350 SERVICES & OTHER CHARGES 162,555.00 9,268.63 136,951.27 25,603.73 84.25 |167,356.00 166,636.98 99.57 6001 EXPENDITURES 1,103,980.00 90,155.66 1,107,782.17 3,802.17-100.34 |1,122,763.00 1,057,794.18 94.21 8001 OTHER INCOME 8170 ADMINISTRATION FEES 125.00- 6,250.00-6,250.00 |5,925.00- 8200 MISC REVENUE 651.30-651.30-651.30 |281.71- 8001 OTHER INCOME 776.30-6,901.30-6,901.30 |6,206.71- 8501 OTHER EXPENSE 8550 INTEREST/FINANCE CHARGES |8.79 8580 MISC EXPENSE 500.00 24.41 475.59 4.88 |150.00 63,496.49 ********* 8590 BANK CHARGES/CREDIT CD FEES 500.00 22.97 477.03 4.59 |300.00 10.16 3.39 8501 OTHER EXPENSE 1,000.00 47.38 952.62 4.74 |450.00 63,515.44 ********* 4000 REVENUES & EXPENSES 1,054,980.00 85,352.86 1,055,759.14 779.14-100.07 |1,073,213.00 1,068,191.91 99.53 120 FINANCE 1,054,980.00 85,352.86 1,055,759.14 779.14-100.07 |1,073,213.00 1,068,191.91 99.53 Meeting of January 25, 2010 (Item No. 7)Page 8 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 4Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 130 HUMAN RESOURCES 4000 REVENUES & EXPENSES 4001 REVENUES 4600 CHARGES FOR SERVICES 9,000.00-260.00- 10,964.00-1,964.00 121.82 |9,000.00-3,758.00- 41.76 5200 MISCELLANEOUS 30.00-30.00 | 4001 REVENUES 9,000.00-260.00-10,994.00-1,994.00 122.16 |9,000.00-3,758.00-41.76 6001 EXPENDITURES 6002 PERSONAL SERVICES 481,000.00 40,268.00 478,862.12 2,137.88 99.56 |459,624.00 463,094.72 100.76 6210 SUPPLIES 2,000.00 260.20 1,861.52 138.48 93.08 |2,000.00 1,728.94 86.45 6350 SERVICES & OTHER CHARGES 160,550.00 3,192.56 99,011.54 61,538.46 61.67 |168,050.00 120,313.34 71.59 6001 EXPENDITURES 643,550.00 43,720.76 579,735.18 63,814.82 90.08 |629,674.00 585,137.00 92.93 8001 OTHER INCOME 8501 OTHER EXPENSE 4000 REVENUES & EXPENSES 634,550.00 43,460.76 568,741.18 65,808.82 89.63 |620,674.00 581,379.00 93.67 130 HUMAN RESOURCES 634,550.00 43,460.76 568,741.18 65,808.82 89.63 |620,674.00 581,379.00 93.67 Meeting of January 25, 2010 (Item No. 7)Page 9 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 5Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 135 COMMUNITY DEVELOPMENT 4000 REVENUES & EXPENSES 4001 REVENUES 4100 LICENSES & PERMITS 12,000.00-1,255.00- 14,329.25-2,329.25 119.41 |12,000.00-12,505.00- 104.21 4300 INTERGOVERNMENTAL |1,667.00- 4600 CHARGES FOR SERVICES 585,000.00- 62,217.87- 534,773.03- 50,226.97- 91.41 |572,675.00-596,709.13- 104.20 4001 REVENUES 597,000.00-63,472.87-549,102.28-47,897.72-91.98 |584,675.00-610,881.13-104.48 6001 EXPENDITURES 6002 PERSONAL SERVICES 1,023,000.00 84,912.43 998,002.25 24,997.75 97.56 |1,019,147.00 1,001,970.55 98.31 6210 SUPPLIES 3,000.00 125.54 807.60 2,192.40 26.92 |3,000.00 883.88 29.46 6300 NON-CAPITAL EQUIPMENT 1,000.00 1,000.00 |1,000.00 219.09 21.91 6350 SERVICES & OTHER CHARGES 56,750.00 446.66 47,890.33 8,859.67 84.39 |57,750.00 47,114.17 81.58 6001 EXPENDITURES 1,083,750.00 85,484.63 1,046,700.18 37,049.82 96.58 |1,080,897.00 1,050,187.69 97.16 8001 OTHER INCOME 8501 OTHER EXPENSE 4000 REVENUES & EXPENSES 486,750.00 22,011.76 497,597.90 10,847.90-102.23 |496,222.00 439,306.56 88.53 135 COMMUNITY DEVELOPMENT 486,750.00 22,011.76 497,597.90 10,847.90-102.23 |496,222.00 439,306.56 88.53 Meeting of January 25, 2010 (Item No. 7)Page 10 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 6Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 140 FACILITIES MAINTENANCE 4000 REVENUES & EXPENSES 4001 REVENUES 4600 CHARGES FOR SERVICES 8,200.00-11,500.00-3,300.00 140.24 |8,200.00-19,006.00- 231.78 5200 MISCELLANEOUS 15,000.00-15,000.00-100.00 |15,000.00-15,000.00- 100.00 4001 REVENUES 23,200.00-26,500.00-3,300.00 114.22 |23,200.00-34,006.00-146.58 6001 EXPENDITURES 6002 PERSONAL SERVICES 534,000.00 43,489.29 528,162.94 5,837.06 98.91 |510,784.00 497,540.03 97.41 6210 SUPPLIES 90,500.00 19,981.07 61,973.76 28,526.24 68.48 |109,500.00 75,701.03 69.13 6300 NON-CAPITAL EQUIPMENT 26,000.00 13,885.05 12,114.95 53.40 |31,000.00 9,474.48 30.56 6350 SERVICES & OTHER CHARGES 502,942.00 42,435.42 385,717.85 117,224.15 76.69 |536,642.00 433,444.96 80.77 6001 EXPENDITURES 1,153,442.00 105,905.78 989,739.60 163,702.40 85.81 |1,187,926.00 1,016,160.50 85.54 8001 OTHER INCOME 8200 MISC REVENUE |385.09- 8001 OTHER INCOME |385.09- 8501 OTHER EXPENSE 8580 MISC EXPENSE 37.02 37.02-| 8590 BANK CHARGES/CREDIT CD FEES 20.00 223.10 223.10-|34.26 8501 OTHER EXPENSE 20.00 260.12 260.12-|34.26 4000 REVENUES & EXPENSES 1,130,242.00 105,925.78 963,499.72 166,742.28 85.25 |1,164,726.00 981,803.67 84.29 140 FACILITIES MAINTENANCE 1,130,242.00 105,925.78 963,499.72 166,742.28 85.25 |1,164,726.00 981,803.67 84.29 Meeting of January 25, 2010 (Item No. 7)Page 11 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 7Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 145 INFORMATION RESOURCES 4000 REVENUES & EXPENSES 4001 REVENUES 4600 CHARGES FOR SERVICES 1,277.42-1,277.42 | 5200 MISCELLANEOUS |75.00- 4001 REVENUES 1,277.42-1,277.42 |75.00- 6001 EXPENDITURES 6002 PERSONAL SERVICES 562,500.00 47,204.07 573,637.60 11,137.60- 101.98 |566,679.00 568,419.01 100.31 6210 SUPPLIES 30,800.00 228.29 19,673.22 11,126.78 63.87 |31,200.00 24,468.64 78.43 6300 NON-CAPITAL EQUIPMENT 983.50 4,267.73 4,267.73-|2,300.00 4,088.74 177.77 6350 SERVICES & OTHER CHARGES 877,970.00 98,268.42 739,646.69 138,323.31 84.25 |860,660.00 756,305.79 87.88 6001 EXPENDITURES 1,471,270.00 146,684.28 1,337,225.24 134,044.76 90.89 |1,460,839.00 1,353,282.18 92.64 8001 OTHER INCOME 8501 OTHER EXPENSE 8590 BANK CHARGES/CREDIT CD FEES 113.97 113.97-|52.75 8501 OTHER EXPENSE 113.97 113.97-|52.75 4000 REVENUES & EXPENSES 1,471,270.00 146,684.28 1,336,061.79 135,208.21 90.81 |1,460,839.00 1,353,259.93 92.64 145 INFORMATION RESOURCES 1,471,270.00 146,684.28 1,336,061.79 135,208.21 90.81 |1,460,839.00 1,353,259.93 92.64 Meeting of January 25, 2010 (Item No. 7)Page 12 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 8Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 150 COMMUNICATIONS & MARKETING 4000 REVENUES & EXPENSES 4001 REVENUES 4300 INTERGOVERNMENTAL 3,000.00-3,000.00-|2,500.00- 4001 REVENUES 3,000.00-3,000.00-|2,500.00- 6001 EXPENDITURES 6002 PERSONAL SERVICES 184,980.00 10,663.78 147,829.83 37,150.17 79.92 |173,932.00 160,384.27 92.21 6350 SERVICES & OTHER CHARGES 104,245.00 1,044.69 124,163.88 19,918.88- 119.11 |113,850.00 153,429.47 134.76 6001 EXPENDITURES 289,225.00 11,708.47 271,993.71 17,231.29 94.04 |287,782.00 313,813.74 109.05 8001 OTHER INCOME 8501 OTHER EXPENSE 8590 BANK CHARGES/CREDIT CD FEES 16.49 16.49-|16.18 8501 OTHER EXPENSE 16.49 16.49-|16.18 4000 REVENUES & EXPENSES 286,225.00 11,708.47 272,010.20 14,214.80 95.03 |287,782.00 311,329.92 108.18 150 COMMUNICATIONS & MARKETING 286,225.00 11,708.47 272,010.20 14,214.80 95.03 |287,782.00 311,329.92 108.18 Meeting of January 25, 2010 (Item No. 7)Page 13 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 9Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 160 POLICE 4000 REVENUES & EXPENSES 4001 REVENUES 4100 LICENSES & PERMITS |55.00- 4270 FINES & FORFEITS 303,500.00- 18,149.30- 300,721.23-2,778.77- 99.08 |302,600.00-320,512.43- 105.92 4300 INTERGOVERNMENTAL 809,009.00-5,331.79- 735,422.49- 73,586.51- 90.90 |882,160.00-832,752.42- 94.40 4600 CHARGES FOR SERVICES 109,700.00- 10,543.50- 95,002.52- 14,697.48- 86.60 |110,300.00-103,999.66- 94.29 5200 MISCELLANEOUS 43,523.85- 43,523.85 |29,300.80- 4001 REVENUES 1,222,209.00-34,024.59-1,174,670.09-47,538.91-96.11 |1,295,060.00-1,286,620.31-99.35 6001 EXPENDITURES 6002 PERSONAL SERVICES 6,546,794.00 550,448.18 6,439,080.34 107,713.66 98.35 |6,185,321.00 6,247,854.36 101.01 6210 SUPPLIES 150,900.00 2,830.90 85,754.48 65,145.52 56.83 |155,300.00 95,993.40 61.81 6300 NON-CAPITAL EQUIPMENT 35,775.00 3,345.60 24,673.63 11,101.37 68.97 |33,550.00 19,958.37 59.49 6350 SERVICES & OTHER CHARGES 547,053.00 20,353.09 381,575.17 165,477.83 69.75 |552,343.00 392,077.81 70.98 6001 EXPENDITURES 7,280,522.00 576,977.77 6,931,083.62 349,438.38 95.20 |6,926,514.00 6,755,883.94 97.54 8001 OTHER INCOME 8070 OTHER RECOVERIES 2,000.00-57.76- 4,451.51-2,451.51 222.58 |2,000.00-445.00- 22.25 8100 INTEREST 2.61-2.61 |3.78- 8200 MISC REVENUE |39.72- 8001 OTHER INCOME 2,000.00-57.76-4,454.12-2,454.12 222.71 |2,000.00-488.50-24.43 8501 OTHER EXPENSE 8580 MISC EXPENSE 500.00 500.00 |500.00 3,681.13 736.23 8590 BANK CHARGES/CREDIT CD FEES 500.00 20.52 224.31 275.69 44.86 |100.00 225.50 225.50 8501 OTHER EXPENSE 1,000.00 20.52 224.31 775.69 22.43 |600.00 3,906.63 651.11 4000 REVENUES & EXPENSES 6,057,313.00 542,915.94 5,752,183.72 305,129.28 94.96 |5,630,054.00 5,472,681.76 97.20 160 POLICE 6,057,313.00 542,915.94 5,752,183.72 305,129.28 94.96 |5,630,054.00 5,472,681.76 97.20 Meeting of January 25, 2010 (Item No. 7)Page 14 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 10Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 161 COMMUNITY OUTREACH - POLICE 4000 REVENUES & EXPENSES 4001 REVENUES 6001 EXPENDITURES 6002 PERSONAL SERVICES 76,500.00 6,389.49 76,120.06 379.94 99.50 |73,127.00 74,096.34 101.33 6210 SUPPLIES 850.00 850.00 |1,100.00 473.75 43.07 6350 SERVICES & OTHER CHARGES 8,705.00 4,512.96 4,192.04 51.84 |9,756.00 6,059.64 62.11 6001 EXPENDITURES 86,055.00 6,389.49 80,633.02 5,421.98 93.70 |83,983.00 80,629.73 96.01 8001 OTHER INCOME 8501 OTHER EXPENSE 4000 REVENUES & EXPENSES 86,055.00 6,389.49 80,633.02 5,421.98 93.70 |83,983.00 80,629.73 96.01 161 COMMUNITY OUTREACH - POLICE 86,055.00 6,389.49 80,633.02 5,421.98 93.70 |83,983.00 80,629.73 96.01 Meeting of January 25, 2010 (Item No. 7)Page 15 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 11Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 165 FIRE PROTECTION 4000 REVENUES & EXPENSES 4001 REVENUES 4100 LICENSES & PERMITS 50,000.00-7,300.81- 48,849.63-1,150.37- 97.70 |55,000.00-49,322.93- 89.68 4300 INTERGOVERNMENTAL 300,000.00-192,224.53- 107,775.47- 64.07 |332,000.00-256,540.25- 77.27 4600 CHARGES FOR SERVICES 4,000.00-285.00- 15,964.00- 11,964.00 399.10 |4,000.00-12,597.50- 314.94 5200 MISCELLANEOUS |1,700.00- 4001 REVENUES 354,000.00-7,585.81-257,038.16-96,961.84-72.61 |391,000.00-320,160.68-81.88 6001 EXPENDITURES 6002 PERSONAL SERVICES 2,815,680.00 279,476.05 2,748,862.34 66,817.66 97.63 |2,712,378.00 2,614,819.06 96.40 6210 SUPPLIES 71,810.00 8,227.49 45,366.75 26,443.25 63.18 |93,648.00 96,009.04 102.52 6300 NON-CAPITAL EQUIPMENT 5,000.00 9,704.69 12,614.33 7,614.33- 252.29 | 6350 SERVICES & OTHER CHARGES 224,183.00 25,130.32 178,200.85 45,982.15 79.49 |223,092.00 205,381.67 92.06 6001 EXPENDITURES 3,116,673.00 322,538.55 2,985,044.27 131,628.73 95.78 |3,029,118.00 2,916,209.77 96.27 8001 OTHER INCOME 8130 CONTRIBUTIONS/DONATIONS 5,453.00 5,453.00-|700.00- 8001 OTHER INCOME 5,453.00 5,453.00-|700.00- 8501 OTHER EXPENSE 8590 BANK CHARGES/CREDIT CD FEES 11.52 11.52-| 8501 OTHER EXPENSE 11.52 11.52-| 4000 REVENUES & EXPENSES 2,762,673.00 314,952.74 2,733,470.63 29,202.37 98.94 |2,638,118.00 2,595,349.09 98.38 165 FIRE PROTECTION 2,762,673.00 314,952.74 2,733,470.63 29,202.37 98.94 |2,638,118.00 2,595,349.09 98.38 Meeting of January 25, 2010 (Item No. 7)Page 16 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 12Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 170 INSPECTIONAL SERVICES 4000 REVENUES & EXPENSES 4001 REVENUES 4100 LICENSES & PERMITS 2,162,500.00- 143,782.99- 2,491,966.05- 329,466.05 115.24 |2,392,615.00-3,784,433.33- 158.17 4600 CHARGES FOR SERVICES 56.00- 2,333.11-2,333.11 |800.00-30,434.77- 3,804.35 5200 MISCELLANEOUS 25.19-25.19 | 4001 REVENUES 2,162,500.00-143,838.99-2,494,324.35-331,824.35 115.34 |2,393,415.00-3,814,868.10-159.39 6001 EXPENDITURES 6002 PERSONAL SERVICES 1,915,500.00 144,410.81 1,820,586.94 94,913.06 95.04 |1,771,747.00 1,799,196.17 101.55 6210 SUPPLIES 22,300.00 290.54 11,810.36 10,489.64 52.96 |11,500.00 19,333.89 168.12 6350 SERVICES & OTHER CHARGES 71,627.00 10,416.02 64,598.88 7,028.12 90.19 |69,627.00 116,887.22 167.88 6001 EXPENDITURES 2,009,427.00 155,117.37 1,896,996.18 112,430.82 94.40 |1,852,874.00 1,935,417.28 104.45 8001 OTHER INCOME 8200 MISC RECEIPTS |3,215.60- 8001 OTHER INCOME |3,215.60- 8501 OTHER EXPENSE 8580 MISC EXPENSE 192.35 213.25 213.25-| 8590 BANK CHARGES/CREDIT CD FEES 18,000.00 1,592.54 20,763.97 2,763.97- 115.36 |31,708.24 8501 OTHER EXPENSE 18,000.00 1,784.89 20,977.22 2,977.22-116.54 |31,708.24 4000 REVENUES & EXPENSES 135,073.00-13,063.27 576,350.95-441,277.95 426.70 |540,541.00-1,850,958.18-342.43 170 INSPECTIONAL SERVICES 135,073.00-13,063.27 576,350.95-441,277.95 426.70 |540,541.00-1,850,958.18-342.43 Meeting of January 25, 2010 (Item No. 7)Page 17 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 13Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 175 PUBLIC WORKS - ADMINISTRATION 4000 REVENUES & EXPENSES 4001 REVENUES 4600 CHARGES FOR SERVICES |12,902.03- 4001 REVENUES |12,902.03- 6001 EXPENDITURES 6002 PERSONAL SERVICES 826,500.00 75,350.36 890,842.54 64,342.54- 107.78 |793,133.00 795,127.66 100.25 6210 SUPPLIES 4,500.00 107.55 4,003.70 496.30 88.97 |4,500.00 2,333.87 51.86 6300 NON-CAPITAL EQUIPMENT 1,000.00 1,000.00 |1,500.00 6350 SERVICES & OTHER CHARGES 22,950.00 979.11 18,395.20 4,554.80 80.15 |33,450.00 27,142.24 81.14 6001 EXPENDITURES 854,950.00 76,437.02 913,241.44 58,291.44-106.82 |832,583.00 824,603.77 99.04 8001 OTHER INCOME 8501 OTHER EXPENSE 8590 BANK CHARGES/CREDIT CD FEES 21.74 21.74-|31.15 8501 OTHER EXPENSE 21.74 21.74-|31.15 4000 REVENUES & EXPENSES 854,950.00 76,437.02 913,263.18 58,313.18-106.82 |832,583.00 811,732.89 97.50 175 PUBLIC WORKS - ADMINISTRATION 854,950.00 76,437.02 913,263.18 58,313.18-106.82 |832,583.00 811,732.89 97.50 Meeting of January 25, 2010 (Item No. 7)Page 18 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 14Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 176 PUBLIC WORKS - ENGINEERING 4000 REVENUES & EXPENSES 4001 REVENUES 4100 LICENSES & PERMITS 75,000.00-1,900.00- 65,110.00-9,890.00- 86.81 |75,000.00-88,150.00- 117.53 4600 CHARGES FOR SERVICES 436,000.00-50.00-600.00- 435,400.00-.14 |330,000.00-253,320.53- 76.76 4001 REVENUES 511,000.00-1,950.00-65,710.00-445,290.00-12.86 |405,000.00-341,470.53-84.31 6001 EXPENDITURES 6002 PERSONAL SERVICES 844,000.00 58,498.09 738,308.96 105,691.04 87.48 |690,511.00 716,001.22 103.69 6210 SUPPLIES 7,050.00 581.68 3,713.83 3,336.17 52.68 |7,000.00 4,353.80 62.20 6300 NON-CAPITAL EQUIPMENT 2,000.00 695.00 1,305.00 34.75 |2,000.00 6350 SERVICES & OTHER CHARGES 70,750.00 2,469.86 53,436.85 17,313.15 75.53 |85,671.00 31,264.11 36.49 6001 EXPENDITURES 923,800.00 61,549.63 796,154.64 127,645.36 86.18 |785,182.00 751,619.13 95.73 8001 OTHER INCOME 8501 OTHER EXPENSE 8590 BANK CHARGES/CREDIT CD FEES |25.27 8501 OTHER EXPENSE |25.27 4000 REVENUES & EXPENSES 412,800.00 59,599.63 730,444.64 317,644.64-176.95 |380,182.00 410,173.87 107.89 176 PUBLIC WORKS - ENGINEERING 412,800.00 59,599.63 730,444.64 317,644.64-176.95 |380,182.00 410,173.87 107.89 Meeting of January 25, 2010 (Item No. 7)Page 19 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 15Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 177 PUBLIC WORKS - OPERATIONS 4000 REVENUES & EXPENSES 4001 REVENUES 4100 LICENSES & PERMITS 845.00-845.00 |100.00-30.00- 30.00 4270 FINES & FORFEITS 500.00-160.00-160.00-340.00- 32.00 |400.00-590.00- 147.50 4300 INTERGOVERNMENTAL 490,000.00-455,022.50- 34,977.50- 92.86 |450,000.00-440,862.40- 97.97 4001 REVENUES 490,500.00-160.00-456,027.50-34,472.50-92.97 |450,500.00-441,482.40-98.00 6001 EXPENDITURES 6002 PERSONAL SERVICES 1,217,000.00 110,283.80 1,226,680.92 9,680.92- 100.80 |1,219,515.00 1,204,152.04 98.74 6210 SUPPLIES 374,500.00 19,709.81 376,131.11 1,631.11- 100.44 |331,000.00 418,633.88 126.48 6300 NON-CAPITAL EQUIPMENT |755.34 6350 SERVICES & OTHER CHARGES 894,300.00 43,919.00 734,714.87 159,585.13 82.16 |861,898.00 728,998.93 84.58 7800 CAPITAL OUTLAY 91.02 91.02-| 6001 EXPENDITURES 2,485,800.00 173,912.61 2,337,617.92 148,182.08 94.04 |2,412,413.00 2,352,540.19 97.52 8001 OTHER INCOME 8200 MISC REVENUE |2,000.00- 8001 OTHER INCOME |2,000.00- 8501 OTHER EXPENSE 4000 REVENUES & EXPENSES 1,995,300.00 173,752.61 1,881,590.42 113,709.58 94.30 |1,961,913.00 1,909,057.79 97.31 177 PUBLIC WORKS - OPERATIONS 1,995,300.00 173,752.61 1,881,590.42 113,709.58 94.30 |1,961,913.00 1,909,057.79 97.31 01000 GENERAL FUND 232,980.00 6,279,559.62-657,254.77-890,234.77 282.11-|3.00-1,612,693.21-********* Meeting of January 25, 2010 (Item No. 7)Page 20 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 16Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 02000 PARK AND RECREATION 200 ORGANIZED RECREATION 4000 REVENUES & EXPENSES 4001 REVENUES 4010 GENERAL PROPERTY TAXES 4,073,118.00- 2,036,559.00- 4,073,118.00-100.00 |3,750,197.00-3,750,197.00- 100.00 4300 INTERGOVERNMENTAL 44,702.00-44,702.00-100.00 |44,702.00-44,702.00- 100.00 4600 CHARGES FOR SERVICES 259,298.00- 24,643.52- 255,185.99-4,112.01- 98.41 |242,070.00-248,788.51- 102.78 5200 MISCELLANEOUS 34,000.00-575.00- 21,054.20- 12,945.80- 61.92 |19,600.00-17,976.58- 91.72 4001 REVENUES 4,411,118.00-2,061,777.52-4,394,060.19-17,057.81-99.61 |4,056,569.00-4,061,664.09-100.13 6001 EXPENDITURES 6002 PERSONAL SERVICES 729,162.00 49,505.84 686,517.48 42,644.52 94.15 |711,222.00 740,557.26 104.12 6210 SUPPLIES 59,451.00 9,414.99 41,457.56 17,993.44 69.73 |66,892.00 47,315.19 70.73 6300 NON-CAPITAL EQUIPMENT 89.51 89.51 89.51-| 6350 SERVICES & OTHER CHARGES 502,597.00 10,214.51 428,456.57 74,140.43 85.25 |472,585.00 473,630.11 100.22 6001 EXPENDITURES 1,291,210.00 69,224.85 1,156,521.12 134,688.88 89.57 |1,250,699.00 1,261,502.56 100.86 8001 OTHER INCOME 8100 INTEREST |1,600.00- 8130 CONTRIBUTIONS/DONATIONS 14,000.00-1,500.00- 12,500.00- 10.71 |13,100.00-3,990.00- 30.46 8200 MISC REVENUE 2,890.00-2,890.00 |1,013.17- 8001 OTHER INCOME 14,000.00-4,390.00-9,610.00-31.36 |14,700.00-5,003.17-34.04 8501 OTHER EXPENSE 8550 INTEREST/FINANCE CHARGES 3.79 3.79-|42.55 8580 MISC EXPENSE |111.00 8590 BANK CHARGES/CREDIT CD FEES 1,097.96 16,972.82 16,972.82-|15,305.81 8501 OTHER EXPENSE 1,097.96 16,976.61 16,976.61-|15,459.36 4000 REVENUES & EXPENSES 3,133,908.00-1,991,454.71-3,224,952.46-91,044.46 102.91 |2,820,570.00-2,789,705.34-98.91 200 ORGANIZED RECREATION 3,133,908.00-1,991,454.71-3,224,952.46-91,044.46 102.91 |2,820,570.00-2,789,705.34-98.91 Meeting of January 25, 2010 (Item No. 7)Page 21 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 17Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 201 RECREATION CENTER 4000 REVENUES & EXPENSES 4001 REVENUES 4600 CHARGES FOR SERVICES 679,000.00- 14,597.98- 498,436.48- 180,563.52- 73.41 |645,500.00-579,349.11- 89.75 5200 MISCELLANEOUS 722,000.00- 77,774.89- 530,615.72- 191,384.28- 73.49 |691,200.00-808,188.83- 116.93 4001 REVENUES 1,401,000.00-92,372.87-1,029,052.20-371,947.80-73.45 |1,336,700.00-1,387,537.94-103.80 6001 EXPENDITURES 6002 PERSONAL SERVICES 792,467.00 46,319.73 755,377.81 37,089.19 95.32 |765,999.00 736,301.71 96.12 6210 SUPPLIES 170,350.00 8,421.16 169,208.88 1,141.12 99.33 |167,100.00 173,171.35 103.63 6350 SERVICES & OTHER CHARGES 491,950.00 29,930.48 404,511.06 87,438.94 82.23 |413,284.00 474,319.08 114.77 7800 CAPITAL OUTLAY |12,000.00 6001 EXPENDITURES 1,454,767.00 84,671.37 1,329,097.75 125,669.25 91.36 |1,358,383.00 1,383,792.14 101.87 8001 OTHER INCOME 8501 OTHER EXPENSE 8550 INTEREST/FINANCE CHARGES 9.18 9.18-|2.64 8580 MISC EXPENSE 871.75 871.75 871.75-| 8501 OTHER EXPENSE 871.75 880.93 880.93-|2.64 4000 REVENUES & EXPENSES 53,767.00 6,829.75-300,926.48 247,159.48-559.69 |21,683.00 3,743.16-17.26- 201 RECREATION CENTER 53,767.00 6,829.75-300,926.48 247,159.48-559.69 |21,683.00 3,743.16-17.26- Meeting of January 25, 2010 (Item No. 7)Page 22 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 18Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 202 PARK MAINTENANCE 4000 REVENUES & EXPENSES 4001 REVENUES 4100 LICENSES & PERMITS 130.00- 6,865.00-6,865.00 |6,275.00- 4600 CHARGES FOR SERVICES 10,700.00-130.00 10,830.00-1.21- |8,700.00- 5200 MISCELLANEOUS 26,000.00-38,473.23- 12,473.23 147.97 |11,600.00-34,803.06- 300.03 4001 REVENUES 36,700.00-130.00-45,208.23-8,508.23 123.18 |20,300.00-41,078.06-202.35 6001 EXPENDITURES 6002 PERSONAL SERVICES 969,400.00 74,234.38 951,370.38 18,029.62 98.14 |961,356.00 992,456.78 103.24 6210 SUPPLIES 93,555.00 5,550.83 85,752.78 7,802.22 91.66 |88,700.00 101,742.32 114.70 6300 NON-CAPITAL EQUIPMENT 4,120.00 387.85 3,732.15 9.41 |4,000.00 3,900.62 97.52 6350 SERVICES & OTHER CHARGES 369,510.00 17,971.48 324,620.95 44,889.05 87.85 |316,462.00 361,449.67 114.22 7800 CAPITAL OUTLAY 7,000.00 5,971.42 1,028.58 85.31 |7,000.00 6001 EXPENDITURES 1,443,585.00 97,756.69 1,368,103.38 75,481.62 94.77 |1,377,518.00 1,459,549.39 105.96 8001 OTHER INCOME 8501 OTHER EXPENSE 4000 REVENUES & EXPENSES 1,406,885.00 97,626.69 1,322,895.15 83,989.85 94.03 |1,357,218.00 1,418,471.33 104.51 202 PARK MAINTENANCE 1,406,885.00 97,626.69 1,322,895.15 83,989.85 94.03 |1,357,218.00 1,418,471.33 104.51 Meeting of January 25, 2010 (Item No. 7)Page 23 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 19Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 203 WESTWOOD HILLS 4000 REVENUES & EXPENSES 4001 REVENUES 4600 CHARGES FOR SERVICES 82,600.00-5,563.00- 97,065.94- 14,465.94 117.51 |80,150.00-86,237.85- 107.60 5200 MISCELLANEOUS 18.00-350.00-350.00 |282.95- 4001 REVENUES 82,600.00-5,581.00-97,415.94-14,815.94 117.94 |80,150.00-86,520.80-107.95 6001 EXPENDITURES 6002 PERSONAL SERVICES 420,586.00 29,455.17 418,288.85 2,297.15 99.45 |404,679.00 402,552.69 99.47 6210 SUPPLIES 26,700.00 3,383.99 18,825.88 7,874.12 70.51 |22,650.00 19,174.47 84.66 6300 NON-CAPITAL EQUIPMENT 500.00 500.00-| 6350 SERVICES & OTHER CHARGES 44,500.00 2,285.76 34,901.69 9,598.31 78.43 |39,349.00 39,246.59 99.74 6001 EXPENDITURES 491,786.00 35,124.92 472,516.42 19,269.58 96.08 |466,678.00 460,973.75 98.78 8001 OTHER INCOME 8130 CONTRIBUTIONS/DONATIONS 1,473.00-1,473.00 |3,657.75- 8001 OTHER INCOME 1,473.00-1,473.00 |3,657.75- 8501 OTHER EXPENSE 8590 BANK CHARGES/CREDIT CD FEES 36.12 607.88 607.88-|637.09 8501 OTHER EXPENSE 36.12 607.88 607.88-|637.09 4000 REVENUES & EXPENSES 409,186.00 29,580.04 374,235.36 34,950.64 91.46 |386,528.00 371,432.29 96.09 203 WESTWOOD HILLS 409,186.00 29,580.04 374,235.36 34,950.64 91.46 |386,528.00 371,432.29 96.09 Meeting of January 25, 2010 (Item No. 7)Page 24 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 20Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 204 ENVIRONMENT 4000 REVENUES & EXPENSES 4001 REVENUES 4300 INTERGOVERNMENTAL |29,500.00- 4600 CHARGES FOR SERVICES 110,000.00-7,483.64- 170,158.35- 60,158.35 154.69 |81,750.00-160,154.15- 195.91 5200 MISCELLANEOUS 3,860.98-3,860.98 |1,430.00- 4001 REVENUES 110,000.00-7,483.64-174,019.33-64,019.33 158.20 |81,750.00-191,084.15-233.74 6001 EXPENDITURES 6002 PERSONAL SERVICES 108,898.00 7,601.26 107,681.02 1,216.98 98.88 |99,297.00 100,838.52 101.55 6210 SUPPLIES 19,425.00 300.40 15,741.62 3,683.38 81.04 |17,900.00 17,070.12 95.36 6300 NON-CAPITAL EQUIPMENT |500.00 6350 SERVICES & OTHER CHARGES 158,470.00 977.17 289,566.06 131,096.06- 182.73 |171,285.00 338,526.13 197.64 6001 EXPENDITURES 286,793.00 8,878.83 412,988.70 126,195.70-144.00 |288,982.00 456,434.77 157.95 8001 OTHER INCOME 8010 TRANSFERS IN |34,467.78- 8130 CONTRIBUTIONS/DONATIONS 2,000.00 1,800.00-3,800.00 90.00- |2,000.00 1,109.75 55.49 8001 OTHER INCOME 2,000.00 1,800.00-3,800.00 90.00-|2,000.00 33,358.03-1,667.90- 8501 OTHER EXPENSE 8580 MISC EXPENSE |.80 8501 OTHER EXPENSE |.80 4000 REVENUES & EXPENSES 178,793.00 1,395.19 237,169.37 58,376.37-132.65 |209,232.00 231,993.39 110.88 204 ENVIRONMENT 178,793.00 1,395.19 237,169.37 58,376.37-132.65 |209,232.00 231,993.39 110.88 Meeting of January 25, 2010 (Item No. 7)Page 25 1/19/2010CITY OF ST LOUIS PARK 13:29:29R5509FIN1 LOGIS005 21Monthly Financial Report Page -By Co, Dept (pb), Object 2009 200912/31/2009 <==========================================>20082009 Description Annual Budget Current Period YTD Actual Budget Balance Per Cent Used | | Prior Year Budget Same Period Prior Year YTD Actual Per Cent Used 205 VEHICLE MAINTENANCE 4000 REVENUES & EXPENSES 4001 REVENUES 4300 INTERGOVERNMENTAL 11,000.00-1,489.07- 21,932.59- 10,932.59 199.39 |11,700.00-12,252.46- 104.72 4600 CHARGES FOR SERVICES 7,131.60-7,131.60 |19,358.74- 5200 MISCELLANEOUS 101,000.00-8,388.42- 104,433.54-3,433.54 103.40 |100,661.00-100,661.04- 100.00 4001 REVENUES 112,000.00-9,877.49-133,497.73-21,497.73 119.19 |112,361.00-132,272.24-117.72 6001 EXPENDITURES 6002 PERSONAL SERVICES 483,300.00 46,920.89 487,344.73 4,044.73- 100.84 |461,301.00 462,607.83 100.28 6210 SUPPLIES 502,650.00 3,547.61 319,410.70 183,239.30 63.55 |432,050.00 424,139.57 98.17 6300 NON-CAPITAL EQUIPMENT 20.97 20.97-| 6350 SERVICES & OTHER CHARGES 135,975.00 13,068.09 132,401.48 3,573.52 97.37 |130,939.00 163,181.83 124.62 7800 CAPITAL OUTLAY 8,352.00 1,602.83 6,749.17 19.19 | 6001 EXPENDITURES 1,130,277.00 63,536.59 940,780.71 189,496.29 83.23 |1,024,290.00 1,049,929.23 102.50 8001 OTHER INCOME 8010 TRANSFERS IN |75,000.00-22,131.34- 29.51 8001 OTHER INCOME |75,000.00-22,131.34-29.51 8501 OTHER EXPENSE 8510 TRANSFERS OUT |8,981.00 8,981.04 100.00 8550 INTEREST/FINANCE CHARGES |78.57 8590 BANK CHARGES/CREDIT CD FEES |31.82 8501 OTHER EXPENSE |8,981.00 9,091.43 101.23 4000 REVENUES & EXPENSES 1,018,277.00 53,659.10 807,282.98 210,994.02 79.28 |845,910.00 904,617.08 106.94 205 VEHICLE MAINTENANCE 1,018,277.00 53,659.10 807,282.98 210,994.02 79.28 |845,910.00 904,617.08 106.94 02000 PARK AND RECREATION 67,000.00-1,816,023.44-182,443.12-115,443.12 272.30 |1.00 133,065.59 ********* Meeting of January 25, 2010 (Item No. 7)Page 26 Meeting Date: January 25, 2010 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: Fourth Quarter Investment Report (October - December, 2009). RECOMMENDED ACTION: No action required at this time. This report is provided for Council’s review. POLICY CONSIDERATION: None at this time. BACKGROUND: The City’s portfolio is focused on shorter term cash flow needs, with investment in other longer term securities. This is done as an effort to try to maximize interest income potential while still adhering to the City’s Investment Policy (see attached) and Minnesota Statute 118A. As in past quarters, we saw a large part of our portfolio turn over as calls came in on some of our higher rate securities. There were nine investments called this quarter with rates ranging from 2% to 5.25%. Because we are unable to replace these investments with equivalent rates, it tends to drive our total portfolio yield lower. It is always necessary to have a reasonable amount of cash available to cover the normal cash flow needs for payroll and general operating expenses. However, significant cash outlays will also be required in the early part of 2010 for debt service payments, Pay As You Go developer note payments, and construction contractor payments for the MSC expansion project. Because of these cash requirements in the very short term, a larger amount of cash is being kept liquid at the present time to ensure the ability to cover the City’s cash flow needs. Cash needed for the Wooddale and Hwy 7 project will most likely slow for the next few months until construction picks up again in the spring. Therefore, Finance is working to purchase a few longer term securities whenever competitive rates are being offered. Our current portfolio yield is averaging approximately 1.8%. This overall level of return is the reason why staff reduced the expected interest earnings in the 2010 budget process. Cities generally use a short horizon benchmark such as the two year Treasury (1.1% at 12/31) or some similar measure. Our primary money market fund for investing available cash is the Minnesota Municipal Money Market Fund, better known as the 4M Fund. This fund is governed and sponsored by the League of Minnesota Cities and is customized specifically for public entities. While the 4M Fund has dropped to an average yield of .12%, longer term investments that have been purchased raise the total portfolio yield. Since commercial paper, which are unsecured notes that corporations and banks issue for their short term financing needs, is no longer considered as secure as it once was, there are very few options other than money markets to lock in safe, short-term investments for cash Meeting of January 25, 2010 (Item No. 8) Page 2 flow purposes. In early 2010, Finance plans to meet with the City’s local bank to determine if there are opportunities for increased interest earning potential by maintaining a larger cash balance with them. Many of our longer term purchases are callable agency bonds. These bonds are issued by government agencies such as the Federal Home Loan Bank or Fannie Mae, and are considered a very safe investment. They typically have more reasonable interest rates for the final maturity date which is in three to five years, but the issuer has the right to call the bond in three months to a year. This effectively reduces the average life of our investments, since it is expected most of these securities to be called if interest rates remain low. However, it is also imperative that sufficient liquidity is available to be able to lock in higher rates once the economy begins to expand. This is another reason to keep a portion of our portfolio in money market accounts. Here is a summary of the City’s portfolio at December 31, 2009: FINANCIAL OR BUDGET CONSIDERATION: None at this time. VISION CONSIDERATION: The City has a sound investment policy that brokers are required to follow with the goals of preservation of capital, liquidity and return on investment. The policy is strictly followed in making investment decisions to protect the City’s resources. Attachments: Quarterly Investment Report Investment Policy Prepared by: Darla Monson, Senior Accountant Reviewed by: Brian Swanson, Finance Manager Approved by: Tom Harmening, City Manager 9/30/09 12/31/09 <1 Year 34% 44% 1-2 Years 10% 13% 2-3 Years 10% 11% >3 Years 46% 32% 9/30/09 12/31/09 Money Markets $18,559,431 $26,379,453 Certificates of Deposit $993,312 $488,597 Municipal Debt $5,799,921 $8,437,891 Agency Bonds $35,021,238 $28,053,905 City of St. Louis Park Investments December 31, 2009 Institution Type Maturity Yield to Maturity Basis Adjusted Market Value 12/31/08 Market Value at 12/31/2009 Estimated Avg Annual Income 4M MM 0.12%24,099,804 11,478,617 13,774 Citigroup/Smith Barney FNMA 7/6/2011 2.00% 2,000,000 2,032,500 40,000 Citigroup/Smith Barney FHLBC 01/04/2012 5.00% 1,000,000 1,039,690 1,000,000 50,000 Citigroup/Smith Barney FHLMC 05/20/2013 4.00% 1,000,000 1,015,420 1,012,100 40,000 Citigroup/Smith Barney FNMA 2/26/2014 2.00% 1,000,000 999,380 20,000 Citigroup/Smith Barney GNMA 7.19%59,175 52,254 3,757 Citigroup/Smith Barney FNMA 5/21/2014 2.00% 1,000,000 1,002,810 20,000 Citigroup/Smith Barney FHLMC 6/30/2014 3.00% 1,000,000 1,009,860 30,000 Citigroup/Smith Barney Govt MM Fund 0.10%3,144,943 9,551,558 9,552 16,660,462 Wachovia/Wells Fargo CD 7/16/2010 4.20% 96,000 96,686 97,719 4,032 Wachovia/Wells Fargo CD 7/16/2010 4.20% 96,000 96,686 97,719 4,032 Wachovia/Wells Fargo CD 7/16/2010 4.20% 96,000 96,686 97,719 4,032 Wachovia/Wells Fargo CD 7/19/2010 4.25% 96,000 96,684 97,720 4,080 Wachovia/Wells Fargo CD 7/19/2010 4.25% 96,000 96,684 97,720 4,080 Wachovia/Wells Fargo FNMA 1/22/2014 2.00% 1,000,000 1,002,812 20,000 Wachovia/Wells Fargo FNMA 5/13/2014 2.00% 1,200,000 1,197,348 24,000 Wachovia/Wells Fargo FNMA 7/8/2014 3.00% 1,000,000 1,001,875 30,000 Wachovia/Wells Fargo FHLB 10/15/2014 2.00% 1,000,000 1,002,187 20,000 Wachovia/Wells Fargo US Govt MM Fund 0.01%2,505,519 251 7,198,340 UBS/Paine Webber UBS Cashfund 0.01%5,747,091 2,785,718 279 Sterne, Agee FHLB 02/12/2010 5.00% 1,067,800 1,072,850 1,007,600 53,390 Sterne, Agee Farmer Mac 1/14/2011 1.62% 1,068,088 1,045,370 17,303 Sterne, Agee Gov't Debt 9/26/2011 1.55% 964,160 968,050 14,944 Sterne, Agee FAMC 10/3/2011 2.10% 1,070,954 1,065,260 22,490 Sterne, Agee FHLB 12/9/2011 2.63% 1,026,113 1,054,890 1,044,020 26,987 Sterne, Agee Muni Debt 5/1/2012 2.80% 101,504 102,349 2,842 Sterne, Agee FHLB 7/23/2012 4.15% 1,055,968 1,061,810 1,027,520 43,812 Sterne, Agee FHLB 8/27/2012 5.05% 1,000,000 1,056,140 1,028,790 50,500 Sterne, Agee FHLB 08/27/2012 2.81% 1,063,803 1,058,740 1,030,050 29,850 Sterne, Agee FHLB 10/29/2012 4.03% 1,030,220 1,054,700 1,034,850 41,466 Sterne, Agee Muni Debt 12/30/2012 2.45% 1,579,605 1,565,850 38,700 Sterne, Agee FNMA 01/04/2013 2.77% 1,041,216 1,021,930 1,000,000 28,883 Sterne, Agee FNMA 1/18/2013 3.85% 1,004,210 1,030,770 1,028,640 38,662 Sterne, Agee FHLB 2/25/2013 3.65% 523,010 537,626 539,779 19,064 Sterne, Agee FNMA 2/26/2013 3.05% 1,022,043 1,022,200 1,005,300 31,162 Sterne, Agee Muni Debt 3/1/2013 2.03% 752,580 747,230 15,277 Sterne, Agee FNMA 03/18/2013 3.96% 1,000,000 1,032,210 1,041,910 39,600 Sterne, Agee FNMA 4/29/2013 3.60% 815,084 822,777 825,115 29,319 Sterne, Agee Muni Debt 5/1/2013 3.12% 307,584 309,399 9,597 Sterne, Agee Muni Debt 5/1/2013 3.16% 599,360 603,705 18,940 Sterne, Agee FNMA 5/28/2013 4.05% 999,000 1,059,340 1,060,390 40,460 Sterne, Agee FFCB 12/27/2013 2.20% 974,412 962,433 21,398 Sterne, Agee Muni Debt 12/30/2013 2.95% 1,574,415 1,550,835 46,445 Sterne, Agee Muni Debt 4/1/2014 2.53% 820,919 810,332 20,769 Sterne, Agee Muni Debt 5/1/2014 3.52% 720,475 724,521 25,361 Sterne, Agee Muni Debt 6/1/2014 4.04% 1,003,740 1,055,620 40,551 Sterne, Agee Gov't Cash Trust 0.01%124,248 58,041 6 24,242,959 Wells Fargo FHLB 12/30/2011 1.05% 1,000,000 993,750 10,500 GRAND TOTAL 63,359,846 1,120,147 Portfolio Yield 1.8% Meeting of January 25, 2010 (Item No. 8)Page 3 St. Louis Park Investment Policy 1 City of St. Louis Park Investment Policy October 27, 2008 It is the policy of the City of St. Louis Park to establish guidelines for the investment of all public funds. This policy is designed to ensure the prudent management of public funds, the availability of operating and capital funds when needed and providing the highest investment return with maximum security and minimum risk. I. SCOPE This policy applies to all financial assets of the City of St. Louis Park. While separate investment funds are created to accommodate reporting on certain bonded indebtedness, individual investments are purchased using a pooled approach for efficiency and maximum investment opportunity. The City’s funds are defined in the City’s Comprehensive Annual Financial Report and include: • General Fund; • Special Revenue Funds; • Debt Service Funds; • Capital Project Funds; • Proprietary Funds; • Internal Service Funds; II. OBJECTIVES The primary objectives in priority order of the City’s investment activities will be: A. Safety of Principal Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure preservation of capital in the overall portfolio. The objective will be to mitigate credit risk by purchasing only highly rated securities with adequate collateral and interest rate risk by matching maturities to cash flow needs and holding securities to maturity.. B. Liquidity The investment portfolio will remain sufficiently liquid to enable the City to meet all operating and capital requirements that might reasonably be anticipated. A portion of the portfolio may be placed in money market mutual funds or local government investment pools which offer same-day liquidity. C. Yield The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account investment risk constraints and liquidity needs. Meeting of January 25, 2010 (Item No. 8)Page 4 St. Louis Park Investment Policy 2 III. STANDARDS OF CARE The prudent person standard shall be applied to the management of the portfolio. This standard states: “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the expected income to be derived.” Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and the liquidity and the sale of securities are carried out in accordance with the terms of this policy. IV. INVESTMENT AUTHORIZATION The Director of Finance/Treasurer is designated as the Investment Officer of the City and is responsible for investment management decisions and activities. The Director of Finance/Treasurer shall carryout established written procedures and internal controls for the operation of the investment program consistent with this investment policy. The Director of Finance/Treasurer is authorized, as allowed under the State Statute, to designate depositories and broker-dealers for City Funds. V. CONFLICT OF INTEREST Any city official involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair his/her ability to make impartial investment decisions. Employees shall disclose any material interests in financial institutions with which they conduct business. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with which business is conducted on behalf of the City. VI. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The Director of Finance/Treasurer will maintain a list of financial institutions authorized to provide investment services to the City. All broker/dealers who desire to become qualified bidders for investment transactions must supply the Director of Finance/Treasurer with: • Audited financial statements and proof of National Association of Security Dealers (NASD) certification; • Proof of Minnesota Registration Broker Notification and Certification form required by Minnesota Statutes 118A prior to any investment transactions with the City. The Broker Notification must be updated annually. • The Official Broker/Dealer Questionnaire must be on file for each broker the City is currently doing business with. Meeting of January 25, 2010 (Item No. 8)Page 5 St. Louis Park Investment Policy 3 • Certification of having read the City’s investment policy and agreement to conduct investment transactions in accordance with the policy and objectives, as well as state statutes. • Written agreement to disclose potential conflicts of interest or risk to public funds that might arise out of business transactions between the firm and the City. Authorized institutions must maintain an investment office within the Twin Cities metropolitan area and have other Minnesota local government clients. VII. AUTHORIZED INVESTMENTS The City is authorized, under State Law Chapter 118A, to invest the securities listed in Exhibit A. VIII. COLLATERALIZATION Full collateralization will be required on non-negotiable certificates of deposit. All deposits will be insured or collateralized in accordance with Minnesota Statutes Chapter 118. IX. SAFEKEEPING Investments shall be kept at the broker/dealer in the City’s name. Certificates will be held at the financial institution in the City’s name. All securities should be a risk category one according to the Government Accounting Standard No. 3. The broker/dealer must provide asset protection of $10,000,000 through the Securities Investor Protection Corporation (SIPC) X. INVESTMENT PARAMETERS The City’s investments shall be diversified as to specific maturity, issuer and institution in order to minimize the risk to the portfolio. Investments should be purchased to match expected cash flow needs, minimizing the market risk associated with the early sale of the investments. XI. REPORTING AND REVIEW A. The investment portfolio will be managed in accordance with the parameters outlined in this policy. The portfolio will be designed with the objective of obtaining a rate of return throughout budgeting and economic cycles, commensurate with the investment risk constraints and cash flow needs. B. The City’s investment policy shall be adopted by resolution by the City Council. The City’s investments shall be reported to the City Council quarterly. The information reported to the City Council should include: 1. A listing of individual securities held at end of reporting period. 2. A listing of investments by maturity date. 3. The percentage of the total portfolio in each type of investment. Meeting of January 25, 2010 (Item No. 8)Page 6 St. Louis Park Investment Policy 4 4. Rate of return for quarter. 5. Market to market analysis. C. Interest earned on investments shall be allocated to various funds based on each fund’s average monthly cash balance. XII. STATUTORY AUTHORITY Specific investment parameters for the investment of public funds by the City are found in Minnesota Statutes Chapters 118A. XIII. POLICY CONSIDERATIONS A. Amendments This policy shall be reviewed on an annual basis. Any changes must be approved by City Council resolution. B. Interest Allocation The general fund shall be allocated a management fee equal to three percent of the total net investment earnings of the investment pool, excluding investments related to the Economic Development Authority. Meeting of January 25, 2010 (Item No. 8)Page 7 St. Louis Park Investment Policy 5 MAXIMUM PER MAXIMUM PER MINIMUM CREDIT MAXIMUM INVESTMENT TYPE ISSUE INVESTMENT QUALITY MATURITY US Treasuries No more than No limit. N/A Five years. If beyond 15% of the total five years, should be portfolio.related to the specific debt payments. US Governmental No more than No limit.N/A Five years. If beyond Agencies and Federally 15% of the total five years, should be Sponsored Agency portfolio.related to specific Securities. To include cash flow needs. callables and step-ups Commercial Paper - No more than No limit.Any two of the 270 days. issued by United States 15% of the total following national corporations or their portfolio.ratings: A1, P1, F1 Canadian subsidiaries or D1. Repurchase Agreements No more than No limit.Provided they are 30 days. or Reverse Repurchase 15% of the total fully collaterized at Agreements portfolio.102% of market value by US Treasuries or Agencies. Bankers Acceptances - No more than No limit.Any two of the 270 days. Fed eligible United 15% of the total following ratings: A1, States banks portfolio.P1, F1 or D1. Certificates of Deposit No more than No limit.Provided it is Five years. If beyond 15% of the total guaranteed by the five years, should be portfolio.FDIC, FSLIC or is related to specific backed by collateral cash flow needs. as required by M.S. 118A. Guaranteed Investment No more than The issuer's or Contracts - issued or 15% of the total guarantor's short- guaranteed by United portfolio.term and long term States commercial banks unsecured debt must domestic branches of be rated in one of foreign banks, United the two highest States Insurance categories by a Companies, or their nationally recognized Canadian subsidiaries.rating agency. Should the issuer's or guarantor's credit quality be down- graded below "AA" or "Aa", the city must have withdrawal rights. Meeting of January 25, 2010 (Item No. 8)Page 8 St. Louis Park Investment Policy 6 MAXIMUM PER MAXIMUM PER MINIMUM CREDIT MAXIMUM INVESTMENT TYPE ISSUE INVESTMENT QUALITY MATURITY General Obligations of No more than No more than Rated "A" or better Five years. If beyond state or local government 15% of the total 50% of the by a national bond five years, should be with taxing powers. portfolio. portfolio. rating service. related to specific debt payments. Revenue Obligation of No more than No more than Rated "AA" or better Five years. If beyond any state or local govern- 15% of the total 50% of the by a national bond five years, should be ment with taxing powers portfolio. portfolio. rating service. related to specific debt payments. General Obligation of the No more than No more than Rated "A" or better Five years. If beyond Minnesota Housing 15% of the total 50% of the by a national bond five years, should be Finance Agency which is portfolio.portfolio.rating service. related to specific a moral obligation of debt payments. the State of Minnesota Money Market Mutual No limit.No limit.Invested primarily in N/A Funds the securities allowed by this policy. Meeting of January 25, 2010 (Item No. 8)Page 9 Meeting Date: January 25, 2010 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: 2010 Grant Year Community Development Block Grant (CDBG) Funds - Proposed Allocation. RECOMMENDED ACTION: No action required at this time. This report is being provided to inform the Council of the proposed allocation of 2010 CDBG funds. Please let staff know of any questions or comments you might have. Time is available to allow a study session discussion to be scheduled on this matter if so requested by the Council. POLICY CONSIDERATION: Does the City Council concur with the recommendations made for the allocation of the 2010 CDBG funds? BACKGROUND: At this time each year the City must decide how to use its annual allocation of CDBG Funds. The City must submit its proposed use of the allocation to Hennepin County by February 23rd. Prior to submittal, the City must hold a public hearing. The hearing and official City Council action is scheduled for February 16th. The City is estimated to receive $206,455 in federal CDBG funds in 2010. They are US Housing and Urban Development (HUD) funds distributed through Hennepin County. This year’s funding is an increase of $3,000 over last year’s allocation. The 2010 Federal CDBG budget increased from $364 billion in 2009 to $399 billion in 2010. The City’s allocation is based on a HUD formula which considers: 1) population; 2) number of persons with incomes at or below poverty; and 3) overcrowded housing units within the City compared to the rest of Urban Hennepin County. The national objectives of the CDBG program are: • Benefit low and moderate-income persons (moderate is defined as up to 80% of median income or $64,000 for a family of four, and low is defined as up to 50% of median income or $41,950 for a family of four in 2009). • Prevention or elimination of slum or blight. • Meet a particular urgent community development need. From a policy perspective, the City Council has typically focused CDBG funds on “sticks and bricks” improvements to the housing stock for low-income families, for both single-family owners and multifamily housing residents. Over the past years a small portion of funds have been allocated to support services for St. Louis Park Housing Authority (SLPHA) residents; park programming for Meeting of January 25, 2010 (Item No. 9) Page 2 low-income youth; and, assisting St Louis Park Emergency Program (STEP) with acquiring a permanent facility. Proposed 2010 CDBG Allocation The proposed use of our allocation of CDBG funds reflect the priorities described in Vision St. Louis Park and the City’s housing goals incorporated from the Housing Summit into the City’s Comprehensive Plan. These priorities include preserving existing housing and increasing affordable ownership opportunities. This year’s proposed allocation is summarized in Table 1, below. It shows that funding focuses on assisting low income single family homeowners with rehab. loans. Perhaps due to current economic conditions, the demand for low-income deferred loans has been high. A waiting list for the low income single family deferred loan program has grown to over twelve residents. Last year $40,000 was allocated to this program. This year $128,955 is proposed. The increased allocation for this project activity, along with the program income realized from repayment of previous CDBG deferred loans, should make it possible to serve seven to nine of these residents. Other proposed uses of the 2010 CDBG allocation include smaller amounts for other single family home rehab projects; and, a small amount to help fund summer park programming at Ainsworth and Meadowbrook Manor Parks. The non-profit affordable housing providers located in the city have historically received CDBG funds to assist with their building renovations. They have completed significant renovations in recent years and with the high need for the single family homeowner assistance, staff did not solicit new requests from them this year. Table 1: Proposed 2010 CDBG Allocation Project Activity Proposed Budget Activity Status Single Family Housing Rehab Emergency Repair Grant $30,000 ongoing Low Income Deferred Loan $128,955 ongoing Housing Land Trust $20,000 ongoing SLP Housing Authority renovation of scattered site home $20,000 ongoing Subtotal $198,955 Public Service (Up to $30,000 allowable for Public Service) Park programming at Meadowbrook & Ainsworth Parks $7,500 ongoing Total $206,455 If the actual allocation is less than the estimated $206,455 the Single Family Low Income Deferred Loan project will be decreased. Meeting of January 25, 2010 (Item No. 9) Page 3 Below is a brief description of each of the project activities recommended for funding. Emergency Repair Program – Single Family $30,000 This program is consistent with the Council’s focus on stick and bricks and has proven its responsiveness to low income seniors and vulnerable residents with annual incomes of 50% or less of the median area income, and assets less than $25,000. It provides grants of up to $4,000 for emergencies such as leaking roofs and water heaters. Community Action Partners for Suburban Hennepin County (CAPSH) currently administers this program for the City. This is an ongoing CDBG activity. Low Income Single Family Deferred Loan Program- $128,955 This is the primary ongoing CDBG rehab loan program targeted for homeowners with annual income of 50% or less of the median area income, or $41,950 for a household of 4, and assets less than $25,000. The rehab focuses on improvements to bring homes into code compliance and provide long-term maintenance free housing. The maximum loan amount is $25,000 and is forgiven after 15 years. Repayment is required if homeowners sell the property before the 15-year period expires. This activity is also funded as deferred loans are repaid. This program is administered by Hennepin County Housing staff. St. Louis Park Housing Authority – renovation of a scattered site home - $20,000 The SLP Housing Authority provides housing to low income residents that are typically below 50% median income. The HA owns and manages 37 scattered site homes throughout the city. The HA has requested $20,000 to assist with concrete step, foundation and sidewalk work. The HA did not request funds for 2009, but continues to have needs for renovation of its properties. Housing Land Trust - $20,000 Homes within Reach is a program of West Hennepin Housing Land Trust that purchases homes and sells them to low income homeowners. Buyers pay for the cost of the building only and lease the land for 99 years. St. Louis Park funds are leveraged with Met Council and Hennepin County HOME funds, and Homes within Reach administers this activity. Homes within Reach has purchased five homes in the city that have been sold to low income families. This program is consistent with the Council’s focus on using CDBG funds for “sticks and bricks” activities. Public Service – SLP Park and Rec. Programming at Meadowbrook Manor and Ainsworth Park - $7,500 The Park & Rec. Department provides park programming to children at the Meadowbrook Manor Apartment Community and the Ainsworth Park community. The $7,500 would provide an enhanced level of programming at both the Meadowbrook Manor and Ainsworth Park neighborhoods in 2010. Ainsworth Park abuts Perspective’s property at Louisiana Court and is used by residents from Perspectives’ and Project for Pride in Living’s apartments. This project has been funded since 2007, and staff recommends allocating programming funds of $7,500. Meeting of January 25, 2010 (Item No. 9) Page 4 NEXT STEPS: The St. Louis Park Housing Authority (SLPHA) will review and discuss the proposed allocation at its February 10, 2010 meeting. The commissioners’ comments will be shared at the Public Hearing. The following actions are required to receive 2010 CDBG funds: February 4, 2010 Publication of Public Hearing Notice February 16, 2010 Public Hearing and approval of Resolution outlining proposed activities. February 23, 2010 Deadline for submission of CDBG Application to Hennepin County. FINANCIAL OR BUDGET CONSIDERATION: CDBG funds allow cities discretion (within the HUD guidelines), to fund projects that meet the national low income objectives and the needs of cities. St. Louis Park will receive an estimated $206,455 in 2010, an increase of $3,000 from 2009. The 2010 CDBG year runs from July 1, 2010 through December 31, 2011. Staff anticipates the proposed projects can expend the funds in a timely manner as has been our historical practice of fully expending CDBG funds. In the event the final allocation is less than estimated, staff recommends reducing the allocation to the single family low income deferred loan activity. Staff will keep Council apprised of actual funding amounts. VISION CONSIDERATION: The City Councils adopted Strategic Direction related to housing is, “St. Louis Park is committed to providing a well-maintained and diverse housing stock”. The use of CDBG funds for the proposed allocation is consistent with this direction. Attachments: None Prepared by: Kathy Larsen, Housing Programs Coordinator Approved by: Tom Harmening, City Manager Meeting Date: January 25, 2010 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: Redevelopment Project & EDA Contract Status Report: 4th Quarter 2009. RECOMMENDED ACTION: This report summarizes the current status of redevelopment projects in St. Louis Park. Staff requests guidance and feedback from Economic Development Authority (EDA)/City Council regarding the format and content of the report. POLICY CONSIDERATION: Not applicable. BACKGROUND: The attached report is meant to keep the EDA & City Council informed on a quarterly basis as to the status of various redevelopment projects in the city. It is also meant to apprise city officials of any anticipated issues or actions relative to corresponding redevelopment contracts to which the EDA &/or City is a party. FINANCIAL OR BUDGET CONSIDERATION: Not Applicable. VISION CONSIDERATION: Not Applicable. Attachments: Redevelopment Project & EDA Contract Status Report: 4th Quarter 2009 Prepared by: Julie Grove, Economic Development & Planning Assistant Greg Hunt, Economic Development Coordinator Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, EDA Executive Director & City Manager Meeting of January 25, 2010 (Item No. 10) Page 2 Redevelopment Project and EDA Contract Status Report 4th Quarter 2009 Project (Developer) Required Completion Date Percent sold &/or Leased Current Project Status Wooddale Catered Living (36th and Wooddale) (Greco Development) 111 senior assisted living rentals 3/1/2011 0% leased 10,000 SF retail space 3/1/2011 0% leased Equity partner found, developer awaiting final approval of HUD financing in late spring. Pending Contract Actions: An amended and restated Redevelopment Contract will be required and is planned to be submitted mid-year upon final approval of developer’s financing by HUD. Ellipse on Excelsior (France Ave. and Excelsior Blvd) (Bader Development) 132 market rate apartments 3/1/2011 0% leased Building under construction 16,394 SF mixed used bldg 3/1/2011 0% leased Pending Contract Actions: Monitoring adherence to contract provisions. The West End (Duke Realty) 350,000 SF retail/restaurant 6/1/2010 50% leased Building completed, seeking tenants 28,00 SF 2nd floor office space 6/1/2010 0% leased Building completed, seeking tenants 130-140 unit hotel 12/31/2011 0% leased Duke marketing hotel pad site 1.1 million SF Class A office space 6/1/2016 0% leased Duke seeking tenants, construction will commence once sufficient commitments have been secured. Pending Contract Actions: Revisions to project schedule and TIF note will require First Amendment to Redevelopment Contract. Developer preparing to submit prove-up costs to city. Oak Hill II Office Building (east of Louisiana Ave. on Walker St.) (Anderson Builders) 15,000 SF Office building 12/31/2009 0% leased Hwy 7/LA interchange which could impact future building, difficulty obtaining financing due to new preleasing requirements. Pending Contract Actions: Contract has expired with no plans to break ground on new building. Developer technically in default. Staff has met with developer regarding next steps. More to come. Melrose Eating Disorders Institute (Park Nicollet Methodist Hospital) 3-story 67,000 SF medical bldg 6/30/2009 100% occupied by PN Building completed Pending Contract Actions: Monitoring adherence to contract provisions. Meeting of January 25, 2010 (Item No. 10) Page 3 Redevelopment Project and EDA Contract Status Report 4th Quarter 2009 Project (Developer) Required Completion Date Percent sold &/or Leased Current Project Status Lake St Office Center (east of Hwy 7 and Louisiana Ave) (Real Estate Recycling) 4.000 SF medical office building 12/31/2009 75% leased Building completed Pending Contract Actions: None. Highway 7 Corporate Center (east of Hwy 7 and Louisiana Ave.) (Real Estate Recycling) 79,000 SF office/tech bldg 12/31/2007 70% leased Building completed, seeking tenants Pending Contract Actions: None. The long term future of the Gold and Purple parking lots is currently subject to SWLRT and Hwy 7 & LA interchange planning. Hoigaard Village (Union Land II Dunbar Development ) “Harmony Vista” – 78 units, 25,000 SF retail 2/28/2008 73% leased 70 % leased Building completed, seeking tenants “The Camerata” – 220 units 9/1/2008 76% leased Building completed, seeking tenants “The Adagio” – 56 units 12/31/2011 0% leased “Melody Row” – 20 townhomes 12/31/2011 0% leased Developer marketing site, construction will commence once condo market recovers. Pending Contract Actions: For refinancing purposes developer has requested that the maturity date of its 2006 TIF Note be extended from Feb 1 to May 1, 2010. Such an extension, while routine, may require formal approval. Continuing to monitor adherence to other contract provisions. Brookside Lofts (former Brookside School location) (Master Dev & Foundation Land) 27-unit loft condo building 12/31/2006 100% sold Building completed 14-unit townhouse building 12/31/2006 100% sold Building completed 5 single family houses 12/31/2006 4 sold Home builder in bankruptcy, one corner lot on Webster remains to be sold and developed Pending Contract Actions: Any sale of remaining single family home lot will require commitment from purchaser to build within nine months. Aquila Commons (west of Texas Ave. on 33rd St.) (Stonebridge Dev) 106 unit senior housing cooperative 12/31/2007 79% sold Building completed Pending Contract Actions: Monitoring adherence to contract provisions especially purchaser income/net worth requirements. Meeting of January 25, 2010 (Item No. 10) Page 4 Redevelopment Project and EDA Contract Status Report 4th Quarter 2009 Project (Developer) Required Completion Date Percent sold &/or Leased Current Project Status Village In The Park (located adjacent to 36th and Wooddale Ave) (Rottlund Homes) 78 Townhomes 6/1/2007 100% sold Building completed 66 loft-style condominiums 6/1/2007 100% sold Building completed 60 senior condominiums 6/1/2007 100% sold Building completed Pending Contract Actions: Monitoring sale of property at 36th St and Wooddale Ave to Greco Development. TIF Note to be paid off Feb. 1. Edgewood Business Center (located in the Edgewood Industrial Park) (Real Estate Recycling) 79,000 SF office/warehouse 12/4/2004 100% leased Building completed Pending Contract Actions: None Wolfe Lake Professional Center (36th St and Beltline Blvd) (Belt Line Industrial Park, Inc) 2-story, 54,742 SF office bldg 3/31/2004 89% leased Building completed, seeking tenants 1-story, 10,038 SF commercial “West” bldg 5/31/2005 50% leased Building completed, seeking tenants Pending Contract Actions: None. Park Commons East Excelsior & Grand (TOLD Development) Phase I – 338 apts, 62,700 SF retail space 7/1/2003 Building completed Phase NE-124 Condos, 4,500 retail space 4/30/2006 Building completed Phase E – 86 condos & 14,235 SF retail space 4/1/2006 Building completed Phase NW – 96 condos, up to 5,000 SF retail space 6/1/2007 Apts 91% occupied Condos 98% sold Retail 96% occupied Building completed Pending Contract Actions: Developer has requested EDA assistance in acquiring an underground parking stall that has been tax forfeited. Such assistance will require formal approval. Fern Hill (Minnetonka Blvd and Raleigh; just west of City Hall) (Park Land Company) 30 condos & 11,200 SF commercial space 12/1/2001 100% sold & leased Building completed Pending Contract Actions: None Meeting of January 25, 2010 (Item No. 10) Page 5 Redevelopment Project and EDA Contract Status Report 4th Quarter 2009 Project (Developer) Required Completion Date Percent sold &/or Leased Current Project Status Mill City – LA Oaks (Louisiana Ave and Hwy 7) (MSP Real Estate) 200 mkt rate apartments 6/1/2002 90% occupied Building completed Pending Contract Actions: None. Zarthan & 16 Street (CSM Hospitality & Rottlund Homes) Marriott Springhill Ste-127 units 3/1/2002 Hotel Building completed Marriot TownePlace Ste-107 units 8/1/2001 Hotel Building completed 86 owner occupied townhomes 1/1/2003 100% sold Building completed Pending Contract Actions: None. Park Center (36th St and Park Center Blvd) (Silver Crest Properties) 45 unit assisted living facility 6/1/2001 100% occupied Building completed Pending Contract Actions: Monitoring adherence to contract provisions. Victoria Ponds (SVK Development) 72 duplex townhomes 12/1/2002 100% sold Buildings completed Pending Contract Actions: None. PNMC – Phase II (Park Nicollet Health Services) 49,310 SF medical office 5/7/2001 100% occupied by PN Building completed 50,690 SF medical office 12/31/2006 Not built PN paid a financial settlement 45,000 SF medical office 12/31/2010 Pending Contract Actions: Monitoring adherence to contract provisions. Meeting Date: January 25, 2010 Agenda Item #: 11 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: Operation Mayday Overview. RECOMMENDED ACTION: No action required. This report is being provided to inform the City Council of a large scale public safety training exercise being planned for late April, 2010. POLICY CONSIDERATION: Does the City Council have questions or concerns about the proposed training exercise that it would like to discuss with staff? BACKGROUND: The St. Louis Park Fire Department was approached with an exciting training opportunity by Adam Services/St. Louis Park Bus Company about the possibility of working together on a drill involving a school bus. As a result of many meetings, the scenario below has been put together. On April 24, 2010, a number of agencies (listed below) will be conducting a full scale training exercise to be undertaken at the SLP Junior High. The scenario involves two late arriving buses on a “normal” school day. School will already be in session (simulated) and most students will be in the school. The scenario will be initiated by a suicide bomber with a backpack containing an IED who then detonates it while standing between the two buses (simulated). The first 911 calls will come from the school and one of the drivers. Initial response will be St. Louis Park Fire and Police, along with Hennepin County Ambulance. This will be a true 911 response with limited information available to the first arriving crews. This exercise will occur on a Saturday and no students will be in the building. Role players will be used in place of students. The buses will have a total of approximately 60 passengers plus drivers. There will be one long bus and one short bus parked side by side (normal parking for the school). This exercise is intended to tax first responders (police, fire and EMS) to their limits. These entities, working together, will have to manage the incident. The message from the planning group is that we are planning for a “worst case scenario” i.e. that this event is the worst thing we could imagine and we want to test our response capabilities. In addition, the School’s response will be measured much like that from Operation Oriole (active shooter exercise done at the St. Louis Park Senior High School in 2008). From the City’s point of view it is felt this exercise can have application to other emergency events with large numbers of victims e.g. plane crash or tornado. Meeting of January 25, 2010 (Item No. 11) Page 2 Organizations currently involved in exercise/scenario planning are: Adam Services (Bus Company) Hennepin County St. Louis Park Schools School Bus Training Company St. Louis Park Fire Department St. Louis Park Police Department MN Dept. of Homeland Security Emerg. Mgmt. MN School Safety Center Minnetonka Fire Department Hennepin County EMS Hopkins Fire Department There will be a comprehensive communications component to this exercise. To that end, Jamie Zwilling, City of St. Louis Park’s Communications Coordinator, is a planning group member and has already contacted the Public Information Officer with the School District. This report is designed to inform the Council prior to any public communications. We will provide ongoing effective communications with residents and other stakeholders that may be impacted by this exercise. FINANCIAL OR BUDGET CONSIDERATION: A $20,000 grant has been secured for this exercise. VISION CONSIDERATION: None. Attachments: Operation Mayday Objectives Prepared by: Mike Dobesh Reviewed by: Luke Stemmer Approved by: Tom Harmening, City Manager Meeting of January 25, 2010 (Item No. 11)Page 3 Meeting of January 25, 2010 (Item No. 11)Page 4 Meeting of January 25, 2010 (Item No. 11)Page 5