HomeMy WebLinkAbout2006/04/24 - ADMIN - Agenda Packets - City Council - Study SessionCity Council Study Session
April 24, 2006
7:00 PM
Council Chambers
6:00 PM Board of Appeals and Equalization
Discussion Items
Approximate
Times
1. 7:00 PM Update on Children First, STEP, Meadowbrook Collaborative
2. 8:00 PM Hwy 7 Corp. Center Redev. Contract (Golden/Nat’l Lead Site)
3. 8:30 PM Wireless Pilot Update and Evaluation Criteria
4. 9:15 PM Motor Vehicle Sales Tax (MVST) Funding Support
5. 9:30 PM Future Study Session Agenda Planning
9:40 PM Adjourn
Written Reports for Council Review
6. Brunswick Avenue / CP Railroad Pedestrian Crossing
7. Monthly Financial Statement
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.
2006 City Board of Appeals and Equalization
2ND MEETING
April 24, 2006
Westwood Rm
6:00 p.m.
AGENDA
1. Convene the City Board of Appeals and Equalization
(requires one certified member present and a quorum)
2. Roll Call
3. Listen to the cases. (See next page)
4. Recommend to reduce, to maintain, or to increase the assessor’s valuation
5. Adjournment.
(Attached is background information on the parcels. Additional information and appraisal data
may be supplied on each property prior to the meeting – either by e-mail, by CSO, or just
before the Monday meeting.)
BOARD APPEALS SCHEDULE (4-24-2006)
Attached is information and an appearance schedule for the Board of Appeals and
Equalization set to begin at 6pm on April 24, 2006. The meeting has been scheduled in the
Westwood Room adjacent to the Council Chambers. There are five (5) to be heard and
four cases for individuals who did not wish to appear at the board. All of the properties
are single-family residential properties. It is not unusual for some of the appellants listed
below to cancel their appointments prior to April 24. Information and appraisals about
each case will be distributed later in the week of April 17. Attached are the minutes from
the 1st meeting of the Board of Appeals on April 17.
April 24, 2006 6pm
Council Chambers
BOARD OF APPEALS SCHEDULE
TO APPEAR
1. 6:05PM Allan Schuster 8521 Westmoreland Lane 612-654-2487
NOT SURE
1. Diane Marken 1616 Alabama Ave. S. 952-545-7024
2. Richard Gibson 2668 Glenhurst Ave 952-922-1931 (h)
612-347-1691 (w)
3. David Fink 8701 Westmoreland Lane 952-545-1161
NO APPEARANCE
1. Mary and Ben Bell 4244 Utica Avenue South
City Assessor Bruce Stepnick
MINUTES
BOARD OF APPEALS AND EQUALIZATION
APRIL 17, 2006
1. CALL TO ORDER
The meeting of the Board of Appeals and Equalization was called to order by
Mayor Jeff Jacobs at 7:14 PM.
2. ROLL CALL
The following Council members were present at Roll Call: Jeff Jacobs, Sue
Sanger, Phil Finkelstein, John Basil, Loran Paprocki, and C. Paul Carver.
3. CHAIRMAN
It was moved by Councilmember Sanger and seconded by Councilmember C.
Paul Carver to appoint Jeff Jacobs as Chairman of the 2006 Board of
Equalization. The motion carried 5-0.
4. SCHEDULE MEETING
It was moved by Councilmember Finkelstein and seconded by Councilmember C.
Paul Carver to reconvene at 6:00 p.m., April 24, 2006 as the time and date for the
next meeting of the Board of Equalization. The motion carried 6-0.
5. RECESS
It was decided to recess the Board of Appeals until April 24, 2006.
_________________________________________
Jeff Jacobs, Chairman
Attest:
Bruce Stepnick, City Assessor
Recording Secretary
City Council Study Session
Discussion Item: 042406 - 1 - Children First, STEP and Meadowbrook Collaborative
Page 1
1. Update on Children First, the Meadowbrook Collaborative
and St. Louis Park Emergency Program (STEP)
Community
Development
PURPOSE OF DISCUSSION:
The purpose of this discussion is to update the City Council on the work being accomplished by
several community agencies - Children First, the Meadowbrook Collaborative and the St. Louis
Park Emergency Program (STEP) - that have partnered together to explore the potential for
collaborative opportunities. It is also proposed that a discussion occur on recent financial
challenges facing all three agencies and a possible role by the City in addressing this issue.
Representatives from all groups will be in attendance at the meeting.
Background
Children First, the Meadowbrook Collaborative and the St. Louis Park Emergency Program
(STEP) were all cited in St. Louis Park’s 2005 designation as one of the “100 Best Communities
for Young People” by America’s Promise – the Alliance for Youth. Each has its own individual
mission statement, along with a shared unique partnership that supports St. Louis Park’s families
and children.
In August 2005, Lt. Governor Carol Molnau named St. Louis Park one of the Best Communities
in Minnesota for Young People, awarded by the Minnesota Alliance with Youth, the local arm of
America’s Promise.
• Children First
Based on Search Institute’s 40 Developmental Assets, Children First is a citywide
partnership aimed at strengthening families and building a caring community for children and
youth. It is a call for everyone to support young people and to build a healthier future one
child at a time.
• Meadowbrook Collaborative
Meadowbrook is a diversely populated multi-family housing neighborhood of 1200 people.
Established in 1993 to address various quality of life issues, such as crime, truancy, serious
housing code violations; the Meadowbrook Collaborative works cooperatively with other
organizations to leverage resources and meet families’ needs. Its mission is to enhance the
self-direction of the Meadowbrook residents toward the betterment of their lives in the areas
of health, education, and safety.
• St. Louis Park Emergency Program (STEP)
Serving the St. Louis Park community for over 30 years, STEP evolved from a faith-based
initiative to a community-wide resource serving the basic needs of over 2900 families and
individuals each year. Its mission is to identify, address, and respond to the critical and
emergency needs of St. Louis Park.
City Council Study Session
Discussion Item: 042406 - 1 - Children First, STEP and Meadowbrook Collaborative
Page 2
For many years, these organizations have been financially supported through donations and
grants. Currently, all three organizations are facing impending funding challenges. For STEP,
funding shortages will translate in to a reduction in services. For Children First and the
Meadowbrook Collaborative, funding shortages put the financial sustainability of their programs
beyond July 1st at risk.
For each organization, fundraising discussions raised concerns regarding competing against each
other for scarce community resources. At the same time, each noted that in addition to having
many commonalities including similar missions, serving the same geographic area and
population and sharing the same organizational partners and common funding sources, the
continued operation of all three organizations is vitally important to sustaining the health and
well-being of St. Louis Park. It was also noted that the current circumstances might provide an
opportunity for creating a new model that would promote greater collaboration between the three
organizations and perhaps other organizations in the community.
In early January, representatives from all three organizations, as well as representatives from the
School District and the City, met to discuss the potential to collaborate and work together. All
attendees unanimously supported the effort to further explore ways for greater collaboration.
The group identified both immediate needs, such as the financial sustainability of each
organization, and long-term initiatives, including the creation of a new model in which the
organizations could work together more effectively and efficiently. The model would address
the needs of children in the community, offering a more inclusive approach by encouraging and
supporting unique partnerships that address quality of life issues within St. Louis Park. This
comprehensive, long-term, team approach to service delivery could provide a more effective way
to increase stability in families.
Funding Status
• STEP
STEP has an annual budget of $519,000 and operates with 6.5 staff positions and many
volunteers. Community members contributed 10,000 volunteer hours in 2005. Seventy-two
percent of the total food shelf intake – 234,553 pounds of food – was generated by private
donations. From 2001-2005, STEP experienced a 64.4% increase in household visits for
food, and a 68.5% increase in the number of individuals served. Due to the loss of grant
funds, STEP must raise $72,000 in funding annually to continue to provide services at the
current level. Currently, the City provides $30,000 in funding towards the operations of
STEP along with space for their operations at Hwy 7 and Wooddale.
Annual Budget $519,000
Available funding for FY 2006 $447,000
Deficit for FY 2006 $72,000
City Council Study Session
Discussion Item: 042406 - 1 - Children First, STEP and Meadowbrook Collaborative
Page 3
• Children First
Children First is supported by private donations and in-kind contributions. It operates on an
annual budget of $65,000 with one paid staff person and volunteers of all ages. In-kind
contributions from the School District include office space, computer, phone, postage and
printing. In the past the City has not provided direct financial support for the operations of
Children First. The City Manager and Organizational Development Coordinator sit on the
Children First Executive Board.
Annual Budget $65,000
Available Funding as of
July 1, 2006
$23,000*
Deficit for FY 2006/2007 $42,000
*Includes two donations totally $10,000 that are anticipated prior to July 1st.
• Meadowbrook
The program is supported by private and public donations and in-kind contributions.
Meadowbrook operates on an annual budget of $80,000 with one paid staff person and many
volunteers from the greater St. Louis Park community. The annual budget is raised through
cash gifts and pledges from individuals, foundations, and businesses. Volunteers provide
approximately 940 hours of service annually. The City has not provided direct financial
support for the operations of the Collaborative. The City’s Police Department is actively
involved in the Collaborative and the Park and Recreation Department provides
programming at the private playground in the Meadowbrook complex. Michele Schnitker,
Housing Supervisor currently sits on the Collaborative board.
Annual Budget $80,000
Available Funding as of
July 1, 2006
$32,390*
Deficit for FY 2006/2007 $47,610
*Includes donation of $15,000 from General Mills anticipated prior to July 1st.
Next Steps
Staff from the three agencies and city and school district representatives held a follow-up
meeting in late January to further discuss the initiatives outlined above and to develop a work
plan for moving forward that emphasizes how the work of each organization complements each
other to make St. Louis Park a better place to live. Since that meeting, staff from each of the
three agencies has continued to meet to explore the development of a new model that enhances
greater collaboration between the three agencies which could be expanded to include other
organizations in the community.
Each agency has continued to move forward with efforts to address immediate funding
shortages. In addition to creating fundraising plans, other donor opportunities, including
contributions from individuals, businesses, service organizations and grant opportunities, are also
being explored.
City Council Study Session
Discussion Item: 042406 - 1 - Children First, STEP and Meadowbrook Collaborative
Page 4
The City has continued to be an active and committed partner with these three agencies and,
unless directed otherwise by the City Council, staff will continue to participate and support the
work of STEP, Children First and the Meadowbrook Collaborative as they explore possible
future collaborative opportunities. Representatives from Children First, The Meadowbrook
Collaborative and STEP will attend with an update on efforts to explore collaboration
opportunities and funding status.
Attachments: Background Information on STEP, Meadowbrook and Children First
Prepared By: Michele Schnitker
Reviewed By: Kevin Locke
Approved By: Tom Harmening, City Manager
City Council Study Session
Discussion Item: 042406 - 1 - Children First, STEP and Meadowbrook Collaborative
Page 5
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Reinvesting in St. Louis Park’s Families and Children
Children First, the Meadowbrook Collaborative and the St. Louis Park Emergency
Program (STEP) were all cited in St. Louis Park’s 2005 designation as one of the
“100 Best Communities for Young People” by America’s Promise – the Alliance for
Youth. Each has its own individual mission statement, along with a shared unique
partnership that supports St. Louis Park’s families and children.
Children First
Based on Search Institute’s 40 Developmental Assets, Children First is a citywide partnership aimed at
strengthening families and building a caring community for children and youth. It is a call for ever yone to
support young people and to build a healthier future one child at a time.
Meadowbrook Collaborative
Meadowbrook is a diversely populated multi-family housing neighborhood of 1200 people. Established in
1993 to address various quality of life issues, such as crime, truancy, serious housing code violations; the
Meadowbrook Collaborative works cooperatively with other organizations to leverage resources and meet
families’ needs. Its mission is to enhance the self-direction of the Meadowbrook residents toward the
betterment of their lives in the areas of health, education, and safety.
St. Louis Park Emergency Program (STEP)
Serving the St. Louis Park community for over 30 years, STEP evolved from a faith-based initiative to a
community-wide resource serving the basic needs of over 2900 families and individuals each year. Its
mission is to identify, address, and respond to the critical and emergency needs of St. Louis Park.
These three organizations have a synergy that serves families who access services of any one of the
three. This model encourages and supports unique partnerships that address quality of life issues within
St. Louis Park, and perhaps most importantly in its more vulnerable neighborhoods. The pilot for this
model is the Meadowbrook Collaborative and its success in stabilizing families and changing the way
respective community partners work together.
This comprehensive, long-term, team approach to service delivery has provided a more effective way to
increase stability in families. The coordination of that process is in the capable hands of STEP, providing
food shelf services, financial support, transportation services, and emotional support to families living in
poverty. For example, in 2005, STEP served 77 Meadowbrook households. Fourteen of these
households received rent assistance, totaling $7,752. Gas voucher and bus pass assistance was
provided to 17 households, including 7 households with children. In all, forty Meadowbrook children were
assisted by STEP in 2005.
The common theme binding these three organizations and echoing throughout the community is Children
First. Its ongoing call to action continues to set the stage for renewed community involvement and support
of the following developmental assets for youth:
External Assets
• Constructive use of time.
• Support.
• Boundaries and expectations.
• Empowerment.
Internal Assets
• Positive Values.
• Social competencies.
• Positive Identity.
• Commitments to learning.
Community members are challenged to think deliberately about how they can build assets in the
community youth and also encouraged to provide ongoing in-kind, financial, and volunteer support; as
well as leadership to all three organizations.
City Council Study Session
Discussion Item: 042406 - 1 - Children First, STEP and Meadowbrook Collaborative
Page 6
March 12, 1992, was a turning point for St. Louis Park, Minnesota. What was intended to be just another
presentation to the local Rotary Club turned into a rallying call for a whole community to support its young
people. As Rotarians heard at that landmark meeting, kids in St. Louis Park are not immune to chemical
use, homelessness, poverty, and a whole host of risk behaviors. Children First was created to combat risk
behaviors and give all kids in St. Louis Park a chance to grow up healthy and happy. The approach to
build social capital unites the whole community around kids.
Based on Search Institute’s 40 developmental assets, or positive attributes kids need to succeed,
Children First is a citywide partnership aimed at strengthening families and building a caring comm unity
for children and youth. It is a call for everyone to support young people and to build a healthier future one
child at a time.
The spirit of helping young people has spread throughout St. Louis Park as people and organizations
become aware of the power of building assets. Children First plays an initiative function by:
• Spreading the message.
• Convening groups around the need to support young people.
• Connecting people and groups with one another.
• Keeping this work in the forefront of the community’s mind.
• Inviting everyone to be a part of the solution.
St. Louis Park teens on average have increased their level of assets by a full two assets since our
longitudinal study began in 1997. This is important because surveys completed by students in St. Louis
Park, and nationwide, show that young people who have 30-40 of the developmental assets are more
likely to do well in school, volunteer in the community and live healthy lifestyles and unlikely to be
involved in risk behaviors. In 2003, thirteen percent of St. Louis Park teens were at the 30-40 assets level
compared to nine percent in 1997. While increasing assets in all young people community-wide can be a
daunting task, St. Louis Park has proven it can be done.
Children First spreads the message of asset building by encouraging community members and
organizations to respond to pressing needs. Earlier this year, community partners were asked to
articulate why Children First is important. The Police Chief cites asset building as a valuable upstream
prevention vehicle, as does our representative from the health care community…both referring to their
own arenas. The School Superintendent translates its importance into student achievement, both
academically and in personal competencies such as self-esteem. The City Manager views Children First
as an economic development tool to keep this first ring suburb strong, vital and at the cutting edge.
Children First fuels the inspiration and creative energies of individuals and organizations to do things to
support our young people, and increase their developmental assets. It operates on an annual budget of
$65,000 with one paid staff person and volunteers of all ages. In-kind contributions include office space,
computer, phone, postage, and printing.
Children First must raise $195,000 in cash and pledges to cover a three-year budget cycle. Your support
is greatly needed and much appreciated.
City Council Study Session
Discussion Item: 042406 - 1 - Children First, STEP and Meadowbrook Collaborative
Page 7
For more information about Children First, please contact coordinator
Karen Atkinson at 952/928-6075
The Meadowbrook Collaborative
Meadowbrook is a diversely populated multi-family housing neighborhood of 1200 people. It was
established in 1993 to address various quality of life issues, such as crime, truancy, and serious housing
code violations and leverage resources to meet families’ needs. The Collaborative is a unique partnership
of the City of St. Louis Park, St. Louis Park Public Schools, Park Nicollet Health Services, and the
Ridgedale Branch YMCA. These organizations work cooperatively with the Meadowbrook residents and
property owner. Meadowbrook’s mission is to enhance the self-direction of the Meadowbrook residents
toward the betterment of their lives in the areas of health, education, and safety.
The Meadowbrook Collaborative exists to evaluate neighborhood needs in the areas of health, education,
and safety; develop programs to meet identified needs; connect Meadowbrook residents to resources in
the greater community and supervise organized programs and activities within the Meadowbrook
neighborhood.
Meadowbrook’s primary focus is on youth, providing culturally relevant services and promoting human
rights by eliminating barriers that prevent youth and their families from equal access to community
resources. Meadowbrook programming provides youth with academic support, enrichment, service
learning, crime prevention and diversion activities, mentoring, leadership skills, positive role models and
life skills. These programs are designed to prepare youth to take a leadership role; the goal is that their
involvement will ultimately lead to systemic change.
The program is supported by gifts and volunteer action from the greater St. Louis Park community. The
annual budget of $122,761 is raised through a combination of $36,914 of in-kind support (rent, internet,
equipment, volunteer workers) and $85,847 in cash gifts and pledges from individuals, foundations, and
businesses.
Volunteers provide about 936 hours of service annually. For example, residents at a senior high rise
make holiday treats and provide fresh fruit for daily snacks. A local florist donates carnations every
Mother’s Day for the children to take home. Teens from a nearby private school volunteer on-site as a
part of their Christian service program. Churches collect supplies and money and help spread the word of
our work. The Junior League facilitates “Girl’s Circle,” addressing the needs, issues, and daily life events
for adolescents. The Hennepin County Children’s Read Mobile provides a strong on-site literacy
component throughout the summer. Lunches are served all summer to kids, and chances for field trips
and fun activities are plentiful.
Local Rotarians have been involved since the inception of the project, providing financial support to build
a playground and basketball court for neighborhood youth and to build a community center, purchase
computers and create a library. Every week, Rotarians are on-site helping Meadowbrook students do
homework. They’re giving summer afternoons to build birdhouses, make s’mores, and fix bicycles for the
kids. Often, male volunteers from the local Rotary Club offer the only positive interaction many of the
children have ever experienced with an adult male. Watching the interaction between adult volunteers
and kids is heartwarming. Youth who didn’t want to be touched are now reaching out for a hug, and
receiving so much more than any of us could ever have anticipated.
Thanks to the support of the St. Louis Park community, the quality of life in the Meadowbrook
neighborhood has greatly improved. Families are connected to preventative health care. Parents are
engaged in their children’s education, and kids are going to school ready to learn.
But the story is not over. Meadowbrook is a model that could be replicated elsewhere in the St. Louis
Park community and beyond. It deserves our continued support. Meadowbrook seeks to raise $250,000
to continue its programs for the next three years.
For more information about the Meadowbrook Collaborative, please contact outreach coordinator Linda
City Council Study Session
Discussion Item: 042406 - 1 - Children First, STEP and Meadowbrook Collaborative
Page 8
St. Louis Park Emergency Program
STEP
Serving the St. Louis Park community for over 30 years, STEP evolved from a faith-based initiative to a
community-wide resource serving the basic needs of over 2900 households each year. Its mission is to
identify, address, and respond to the critical and emergency needs of St. Louis Park residents.
STEP runs the local food shelf and provides other services in areas such as transportation, housing,
clothing, information and referrals, and supportive counseling. Programs specifically for children include
the distribution of backpacks and school supplies, birthday bags, holiday gifts, warm hats, mittens and
scarves, as well as many volunteer opportunities for youth.
STEP has an annual budget of $519,000 and operates with 6.5 staff positions and many volunteers.
Community members contributed a total of 10,000 volunteer hours in 2005. Seventy-two percent of the
total food shelf intake – 234,553 pounds of food – was generated by private donations. STEP also
provided 620 children with school supplies and backpacks for the current 2005-2006 school year, and 70
children with warm mittens and gloves. The December holiday program assisted 1,074 households with
food; 876 children were provided with holiday gifts from the annual toyshop. In all, the transportation
program served 481 families. STEP provides a 3-day supply of nutritious food to households in St. Louis
Park; there were 4,719 food shelf visits in 2005. Emergency financial assistance for rent, car repairs, and
prescriptions went to 205 households. From 2001-2005, STEP experienced a 64.4% increase in
household visits for food, and a 68.5% increase in the number of individuals served.
Young people not only benefited from STEP services; they gave back. Community youth donated an
amazing 2,300 hours of volunteer hours at STEP – almost 25% of total 2005 volunteer hours!
STEP has many time-honored community partnerships, including the city, schools, local business, the
faith community, service organizations, and private individuals. Last year a local private school official
shaved his thick head of hair in response to a challenge that he would do so if students collected a certain
amount of food for the food shelf. Students exceeded the challenge, collecting hundreds of pounds of
food. Retired people answer phones, schedule appointments, stock food shelves, and run the clothing
closet – and that’s just a sampling! Community members volunteer countless hours to plan and host
Empty Bowls, an annual event to raise community awareness and thousands of dollars for the STEP food
shelf.
Local Rotary Clubs support STEP in many ways. Each December, local Rotarians deliver and unload a
truckload of toys for the annual holiday toyshop. Local clubs donate collectively, as well as promote
individual gifts of food, warm mittens for kids, holiday gifts, and volunteer hours. A spring and fall chore
day is annually coordinated through the efforts of Rotary, inspiring an intergenerational volunteer
workforce of Rotarians, high school athletes, and neighborhood youth to come together and help
homebound senior citizens with yard work. The involvement of young people energizes those leaving
their own un-raked autumn leaves to donate a Saturday or two; and, the elderly folks who receive chore
day services are deeply moved by the generosity of youth and the kindness and laughter shared by all.
STEP must raise $218,000 in funding over the next three years to continue to provide services at the
current level. In addition to this operating revenue, STEP is in need of a permanent facility to house its
programming.
For more information regarding STEP, please contact director Jackie Olafson at 952/925-4899, or
City Council Study Session
Discussion Item: 042406 - 2 - Hwy 7 Corp. Center Redev. Contract
Page 1
2. Proposed Business Points of Redevelopment Contract with CPE
LLC (Real Estate Recycling) for the proposed Highway 7
Corporate Center Redevelopment Project.
Community
Development
PURPOSE OF DISCUSSION
Staff wishes to update the EDA/Council on the primary business points of a proposed
redevelopment contract with CPE LLC (Real Estate Recycling) and the projected economic
impact of the Highway 7 Corporate Center project. It should be noted that the business points
are still provisional as the Contract is currently a work in progress. It is, however, relatively
close to the final version.
BACKGROUND
Real Estate Recycling (RER) plans to cleanup and redevelop the former National Lead/Golden
Auto property located at 7003 Lake Street West along with several properties to the east along
Hampshire Ave. Upon the removal of the existing buildings on the site, RER’s environmental
response action plan calls for excavation and treatment of the most heavily contaminated soils
(“hot spots”) with a stabilization agent and then capping those soils on site with a new building
and parking lots.
Once the contamination on the property has been properly addressed and the site prepared for
redevelopment, RER proposes to construct a 78,000 square foot, multi-tenant
office/showroom/tech building called the Highway 7 Corporate Center. The majority of the
building will be office and finished space. South of the new building, a 400-stall parking lot will
be constructed. This new “Purple Lot” will continue to be leased to Methodist Hospital for its
off-site employee parking needs. South of the Xcel Energy substation, All Hours Towing will
continue its sublease with Methodist for its’ privately operated impound lot which is utilized by
the city.
The vacant property owned by the City and EDA at the southwest corner of Hwy 7 and
Louisiana Ave will be developed as a remote parking lot for Methodist’s remaining parking
needs displaced by the new building on the former Golden property. This new “Silver Lot” will
accommodate approximately 420 vehicles and will be landscaped. It will exist until Methodist
constructs a new ramp on the north side of its campus and/or a grade separated interchange is
constructed at Highway 7 and Louisiana Avenue.
ECONOMIC IMPACT
Currently, the five properties that constitute the subject redevelopment site area have a combined
assessed value (as contaminated) of approximately $4.8 million. The value of the former Golden
Auto parcel is impacted by its designation as a contaminated property. Upon redevelopment the
site area would have an estimated market value of just over $9 million. Currently, the five
properties generate a total of $103,430 in property taxes. The projected property tax on the site
area after the proposed redevelopment has occurred would be approximately $308,715. Thus, the
redeveloped site would produce approximately $205,285 more in property taxes than what it
currently generates.
The proposed multi-tenant, office/showroom/tech building is actively being marketed and has
received substantial interest from prospective tenants. No tenants to date have signed leases
given all the necessary approvals yet to be obtained. Until those occur it is difficult to estimate
the exact number of new employment positions to result from the new project. Given the size
and the nature of the building, however, one could project that the project will generate upwards
of 350 employment positions depending on the tenants and level of finish within the building.
City Council Study Session
Discussion Item: 042406 - 2 - Hwy 7 Corp. Center Redev. Contract
Page 2
REDEVELOPER’S TIF APPLICATION
At the September 26, 2005 study session the EDA/Council reviewed Real Estate Recycling’s
preliminary TIF application along with preliminary business points for a future redevelopment
contract. Both were favorably received. On February 13, 2006 the EDA/Council received an
update report which noted the redeveloper’s plans to modify the proposed building thereby
increasing the value of the project. The report also noted the redeveloper’s need for additional
TIF assistance.
Staff and the EDA’s financial consultant, Ehlers & Associates, have reviewed numerous budgets
and proformas from Real Estate Recycling and concurred that the proposed Highway 7
Corporate Center project warrants the use of tax increment financing. More specifically, it was
determined that there is a financial gap in the most recent proforma of $2,460,000. This gap is
attributable to costs considered extraordinary to the proposed redevelopment. These include: soil
remediation costs (not covered by grants), site capping, relocation of municipal utilities, building
demolition and business relocation costs. It is for these costs that Real Estate Recycling is
seeking TIF assistance. The requested level of assistance is considered reasonable given the
complexity, quality, projected total value, and other residual benefits derived from the proposed
redevelopment (such as off-site parking for Methodist Hospital employees, utilization of the tow
lot by the city and the provision of an easement for a potential railroad interconnect).
It is estimated the proposed project would generate the requested $2.4 million in approximately
20 years (on a net present value basis) using a 1% interest rate and no inflation. The proposed
project would be financed on a "pay-as-you-go" basis, which is the desired financing method
under the city's policy.
In order to generate the level of financial assistance required by the proposed project it will be
recommended that the EDA create a new Redevelopment TIF district as well as a Hazardous
Substance Subdistrict. The TIF district will capture the increased value of the new development.
The TIF subdistrict will capture the “base values” of the current parcels. Thus the tax increment
from the new development as well as the base parcels will be returned to the redeveloper to
reimburse it for its qualified project costs.
Only expenses incurred to fulfill the redeveloper’s Voluntary Response Action Plan (VRAP)
may be reimbursed with tax increment from a Hazardous Substance Subdistrict. In fact, the vast
majority of the tax increment ($2.1 million) will be used for soil correction costs (which include
demolition and a new site cap). The remainder of the tax increment ($360,000) will be used for
business relocation and reestablishment costs which will be reimbursed with the tax increment
from the Redevelopment District.
The former National Lead/Golden Auto property itself (7003 Lake Street West) was originally
included in the Highway 7 Redevelopment TIF District. However according to current Hennepin
County records this parcel is not listed among those constituting the Highway 7 TIF District.
Since a parcel cannot be included within two different TIF districts the EDA/Council will be
requested to remove (or decertify) this parcel from the current Highway 7 Redevelopment TIF
District in order that it may be included within the new Highway 7 Corporate Center TIF
District.
The subject site area is within the City’s Redevelopment Project Area which is statutorily
required. Inclusion of this project within a designated Redevelopment Project Area gives the
EDA the authority to assist with all the remediation and redevelopment actions necessary to
implement the Highway 7 Corporate Center project.
City Council Study Session
Discussion Item: 042406 - 2 - Hwy 7 Corp. Center Redev. Contract
Page 3
The redeveloper recently obtained commitments from the Department of Employment and
Economic Development (DEED) and Hennepin County for low interest Environment Protection
Agency (EPA) loans. The redeveloper intends to repay these loans with the requested TIF
assistance. The building portion of the proposed project will be conventionally financed through
a private lender.
CPE LLC has agreed to a "look back" provision in the redevelopment contract with the EDA for
this project. Such a provision will enable the EDA to review the redeveloper’s annualized
cumulative internal rate of return on the project in the event the project is sold within 5 years.
Should such a sale occur, the redeveloper would be required to pay the EDA 50 percent of the
“Participation Amount” it achieves upon closing. This is a key provision as it ensures that if the
project is sold within a relatively short period of time for more than its originally projected value,
the EDA shares economically in the success of the project.
BUSINESS SUBSIDY
The assistance provided to the redeveloper under the Agreement (including both grant proceeds
and issuance of the TIF Note) do not constitute a “business subsidy” under the Business Subsidy
Act. This is because the grants and Note represent assistance that is exempt from the Business
Subsidy Act under Sections 116J.993, Subdivision 3, clauses (4), (8) and (16). The redeveloper
will however be required to file annual progress reports with the EDA.
NEXT STEPS
If it is the consensus of the EDA/Council that the business points outlined in the attached
Summary are acceptable, the EDA will be asked to consider approval of the entire
Redevelopment Contract at its upcoming May 15, 2006 meeting.
ATTACHMENT: Summary of Redevelopment Contract between the SLP EDA and CPE, LLC
Prepared by: Greg Hunt, Economic Development Coordinator
Reviewed by: Kevin Locke, Community Development Director
Approved by: Tom Harmening, EDA Executive Director
City Council Study Session
Discussion Item: 042406 - 2 - Hwy 7 Corp. Center Redev. Contract
Page 4
Summary of Redevelopment Contract
Between the SLP EDA and CPE, LLC
The following is a summary of the Redevelopment Contract between the EDA and CPE, LLC
(“Redeveloper”). It should be noted that these points are still provisional as the Contract is
currently being negotiated. It is, however, relatively close to the final version.
Article I: Defines the specialized terms used in the Agreement. Key geographic areas include:
“Adjacent Parking Property” is the property adjacent to the “Parking Property,” which is
owned by a billboard company and will be part of the Methodist Hospital remote lot.
“Parking Property” is the property at Highway 7 and Louisiana Avenue, to be replatted,
owned by the EDA, and leased to Redeveloper for sublease to Methodist Hospital for remote
parking.
“Redevelopment Property” consists of the 5 parcels that make up the TIF District and
Subdistrict;
“Subdistrict” is the Hazardous Substance Subdistrict that includes the same parcels as the
TIF District. (The Subdistrict allows the EDA to capture the existing base value and use the
taxes from that value to pay for environmental remediation costs.)
“TIF District” is the redevelopment tax increment financing district made up of the
Redevelopment Property.
Article II: Contains standard warranties and representations.
Article III: Discusses the details of land acquisition, conveyance, and environmental mitigation:
• The Redeveloper has acquired four of the five parcels necessary for redevelopment;
proceeds of the County ERF Grant ($4,750,000) were applied toward the purchase of
Parcel 5 (the Golden Auto Site).
• Parcel 1 is a small tax-forfeited parcel owned by the City. The City will convey to
the EDA by quit claim deed, and the EDA will convey to the Redeveloper for $1.00.
• The Redeveloper will prepare and record the plat of the Redevelopment Property.
• The Redeveloper will enter into a parking lease agreement with Methodist Hospital to
lease the southern portion of the Redevelopment Property to the Hospital for use as a
remote parking lot, and Methodist Hospital will sublease a portion of this area to All
Hours Towing, Inc. for use as a City impound lot.
City Council Study Session
Discussion Item: 042406 - 2 - Hwy 7 Corp. Center Redev. Contract
Page 5
• The Parking Area is part of the recently-approved plat called Louisiana Alignment.
Portions of the plat are currently owned by the City and portions by the EDA. The
City will convey its entire portion to the EDA by quit claim deed. The EDA will
retain the Parking Property and will convey all other lots and outlots back to the City.
• The EDA will lease the Parking Property to the Redeveloper for $1, and the
Redeveloper will also enter into a lease for the Adjacent Parking Property with its
owner.
• The Redeveloper will sublet the Parking Property and Adjacent Parking Property to
Methodist Hospital for remote parking (in addition to the remote parking on the
Redevelopment Property described above).
• The Redeveloper will execute and deliver a Railroad Easement Agreement, granting
to the City an easement for railroad interconnection purposes on a portion of the
Redevelopment Property.
• The Redeveloper has obtained approval of a Voluntary Response Action Plan
(VRAP) for the Redevelopment Property, and is in the process of obtaining approval
of a VRAP for the Parking Property and the Adjacent Parking Property. Redeveloper
must carry out all the removal and remediation actions required under those VRAPs.
• The EDA will finance a portion of the remediation costs by disbursing proceeds of a
DEED grant ($1,904,456) and a Met Council grant ($800,000).
• The EDA will finance remediation costs in excess of grant proceeds through the
issuance of two tax increment revenue notes in the combined principle amount of
$2,460,000:
o Series A, secured by increment available from the both the TIF District
and the Subdistrict, and issued to reimburse VRAP costs within the TIF
District/Subdistrict boundaries, and
o Series B, secured by increment from the TIF District, and issued to
reimburse relocation costs incurred by Redeveloper (which are not
eligible for financing from the Subdistrict).
• Neither the grants nor the tax increment assistance constitutes a business subsidy
because this project meets the “redevelopment of polluted property” exception and
the “hazardous substance subdistrict” exception under the Business Subsidy Act.
• The Redeveloper will pay all EDA and City out of pocket administrative costs.
• Should the Redeveloper sell the project within 5 years after completion, the
Redeveloper would be required to pay the EDA 50 percent of the “Participation
Amount” it achieves upon closing.
City Council Study Session
Discussion Item: 042406 - 2 - Hwy 7 Corp. Center Redev. Contract
Page 6
Article IV: Provides details of construction:
• The Redeveloper will construct the Minimum Improvements and Parking
Improvements and maintain them in good condition until maturity of the Notes.
• The EDA will approve all construction plans.
• Material changes to construction plans must be approved by the EDA.
• Construction will be substantially completed by December 31, 2007.
• The Redeveloper will submit written reports by March 1 of each year, beginning in
2007 and continuing until four years after issuance of the Certificate of Completion
for the Minimum Improvements. The reports must comply with the Grant Agreement
reporting requirements.
Article V: Provides typical insurance requirements.
Article VI: Includes tax convents:
• Redeveloper has contractual (as well as statutory) obligation to pay property taxes.
• Redeveloper must enter into an Assessment Agreement setting a minimum market
value for the Minimum Improvements.
Article VII: Provides details of other financing requirements:
• The Redeveloper must submit evidence of adequate funding commitments to pay the
cost of developing the Minimum Improvements before the EDA will convey tax-
forfeited Parcel 1 or disburse grant proceeds.
• The EDA will subordinate its rights under the Agreement as needed to permit
Redeveloper to obtain financing, but EDA will not subordinate the Assessment
Agreement.
Article VIII: Governs assignment and indemnification matters:
• Before completion of the Minimum Improvements and Parking Improvements, the
Redeveloper will not transfer or assign the property except with prior written
approval from the EDA.
• The Redeveloper indemnifies the EDA and City against any loss or damage arising
from any defect in the Minimum Improvements and any claim arising from the
Agreement.
City Council Study Session
Discussion Item: 042406 - 2 - Hwy 7 Corp. Center Redev. Contract
Page 7
Article IX: Events of default and remedies:
• If the Redeveloper defaults under the Agreement, the EDA may (among other things)
withhold tax increment payments under any Note, or may terminate the Notes and the
Agreement.
• After conveyance of Parcel 1, the EDA will have the right to re-enter and take
possession of Parcel 1 if the Redeveloper fails to meet certain conditions. This right
of reversion terminates when the Minimum Improvements are completed.
City Council Study Session
Discussion Item: 042406 - 3 - Wireless Pilot Update & Evaluation Criteria
Page 1
3. Wireless Pilot Update and Evaluation Criteria TSS
PURPOSE OF DISCUSSION:
To provide an update to the City Council on the pilot wireless program and to present pilot
evaluation criteria previously requested and approved by Council. A report on this same subject
was provided to Council in an April 10 study session report. Staff supports Council discussion of
evaluation criteria to ensure they continue to be relevant in view of pilot implementation and
current Council goals.
While it is also tempting to start evaluating the results of the pilot now, staff feels that doing so
would be premature as the pilot just went live on April 24. We continue to receive sign-ups, and
there will be much data to gather in the next few months.
BACKGROUND:
Here is the latest information on the pilot wireless project. The format of this information is
similar to that provided to Council on April 10. This is an update on what’s happening, what’s
going well, what’s challenging, and what the schedule currently suggests.
What’s Happening Now?
• We continue to receive some sign-ups for the pilot, though the majority of these are in. At
this time we have approximately 335 sign-ups. Over half of the sign-ups thus far are from
folks without access to the Internet at all or dial-up customers. About 30 of the sign-ups
are from people outside the actual pilot areas (they have been contacted).
• We continue to answer phone calls and e-mails, although most people receive their
information from www.stlouispark.org, the new www.parkwifi.com web site, or the
Parkwifi phone number -- (952) 928-2859.
What’s Going Well?
• People with whom we, Unplugged Cities, and First Mile Wireless have had contact seem
quite interested in the service, and are hoping the pilot areas can be extended. Current
sign-up numbers are encouraging both in terms of current Internet use (significant
number of current dial-up and non-Internet users) and the fact that subscribers are willing
to pay for a service that is not guaranteed to continue – they are sharing the risk!
• Equipment continues to arrive on a timely basis and we currently do not anticipate
equipment delivery issues.
• Fiber connection to the Internet is complete.
• Fiber extensions to support the wireless access points (equipment mounted on street light
poles) are complete.
• Wireless access points are now mounted on street light poles (one is mounted at Aquila
School).
City Council Study Session
Discussion Item: 042406 - 3 - Wireless Pilot Update & Evaluation Criteria
Page 2
• Necessary arrangements and agreements with Xcel have been completed and Xcel staff
has been very helpful in providing advice as we move through this process.
• www.parkwifi.com is the wireless web site designed primarily to accept sign-ups. It also
provides other program information. The site will be developed much more if we go
citywide with wireless.
• The subscriber Frequently Asked Questions document, Privacy Policy, Acceptable Use
Policy, and Subscriber Agreement have been completed and posted at
www.parkwifi.com.
• We have identified potential public Showcase Sites, where people who are not in the pilot
areas can “test drive and compare” the wireless service to their current service. Sites
identified include City Hall, Recreation Center, Nature Center, and Meadowbrook
Collaborative. We are also considering linking from City Hall to a nearby site at Harvest
Moon. We are working with vendors who may be willing to loan equipment for this
purpose with minimal impact to the pilot budget.
What’s Challenging?
• Pilot areas can never be large enough. Staff members mounting the wireless access
points recently were approached by several citizens excited about the pilot and wishing it
extended in to their areas.
• Excelsior & Grand is an area that continues to express significant interest in the pilot
project. Staff continues to meet with E & G staff to consider what is possible – how at
least certain areas of E & G and the Town Green could be served during the pilot. Budget
limitations in the pilot mean we cannot serve all parts of any residential or commercial
multi-unit complex without that complex’s participation. We also recognize the high
profile nature of E & G. Staff is working with vendors and E & G to consider
partnerships that may enable some service at E & G during the pilot.
• Experience in other cities suggest the wireless access points (mounted on the street
lights) and subscriber equipment to connect to the wireless network, also known as the
wireless bridge, have presented some technical challenges to maximize desired signal
strength and reliability. We have already addressed some known issues; other issues will
certainly emerge. We are working with the equipment vendors to move towards
resolution.
Other Current Data
Based on Council feedback, additional information has been compiled and is attached. Included
are the following:
• Subscriber Counts (as of April 19) by Pilot Area
• Subscriber Projections and Preliminary Sign-ups
• Moorhead Subscriber Data
• Updates from Other Local Municipal Wireless Efforts
• St. Louis Park Business Model Updates
• Maps of the four pilot areas showing phase buffers
City Council Study Session
Discussion Item: 042406 - 3 - Wireless Pilot Update & Evaluation Criteria
Page 3
What’s the Current Schedule?
In a Nutshell…
• Pilot: March/April – June 2006
• Council Decision: June / July 2006
• Citywide Service Availability (if approved): Q1 2007
In Several Nutshells…
March 14 – Pilot Subscription Materials Arrive
March 21 – Reminder Pilot Subscription (Pulse) Postcard Arrives
March 28 -- Receive Final Pilot Sign-Ups
March 29 -- Complete Fiber Extensions
March 31 -- E-Mail Update to Subscribers
Internet Connection Completed
March 31/April 1 -- Complete Wireless Access Point Installs
Complete Xcel Agreement
April 4 Receive Wireless Bridges
April 7 Mail Follow-Up Materials to Pilot Subscribers (checklist, complete
subscriber agreement, mail to those w/o Internet) and Solicit Additional
Subscribers in Selected Areas
Connect Fiber Extensions
April 14 Complete Beta Test with Selected Users
Complete Testing Billing Process
April 20 – 29 Phase 1 Subscriber Agreement / CPE Distribution / Demo – Go Live!
April 20 – May 1 Initial Subscriber Follow-Up Calls / Contacts
April 24 -- Discuss project evaluation criteria with City Council
May 1 – 7 Phase 1 Service / Adjustments
May 8 – 14 Phase 2 and 3 Subscriber Agreement / CPE Distribution / Demo
May 15 -- Begin Testing Municipal / School Applications and
Activate Showcase Sites
May 22 - 26 Pilot Wi-Fi Forum I – Q & A / Tips / Problem Discovery /
Free E-Mail / SPAM / Virus / Pop-Up Blockers
June 5 - 9 Pilot Wi-Fi Forum II – Check In, Follow-Ups, Pilot Evaluation
June 12 & 19 Study Session / Regular Council Meeting to Evaluate Pilot
and Decide Future
City Council Study Session
Discussion Item: 042406 - 3 - Wireless Pilot Update & Evaluation Criteria
Page 4
Pilot Evaluation Criteria
The June Council meetings noted above suggest an earlier review of project evaluation criteria
would be helpful. Here are the evaluation criteria Council approved at its November 21 meeting
along with the pilot wireless project:
Monitor pilot area network performance and measure success of Pilot based upon RFI
responses and agreements with vendor and partners. Performance measurements to judge
success of pilot include (but not limited to):
A. Equipment Vendor Evaluation
Document upload and download data rates
Document system availability
Understand ease (or difficulty) of installation (example: What percentage of
installations required truck-rolls? External antennas?).
Understand any variations of performance based on time-of-day
Compare pilot test results to network performance specifications
Problem identification and resolution
Pilot results relative to business plan assumptions
B. Partner Evaluation
Response time for call center (sales fulfillment, general help desk, other)
Customer satisfaction survey results
Public safety and service benefit projections (shared public safety-service
benefit model)
Customer experiences with on-site installation and trouble shooting
E-mail access and performance (access times, spam blocking, etc.)
Performance of features such as parental control
Performance of core-network and system integration
Interaction with St. Louis Park staff for billing and other operational
coordination
Problem identification and resolution
Pilot results relative to business plan assumptions
C. Customer Evaluation
Conduct customer satisfaction survey and discussion forum of pilot
participants
What worked, what did not, and what modifications are required?
Will they continue service?
Will they make positive recommendations and serve as a reference for
quotes, etc.?
City Council Study Session
Discussion Item: 042406 - 3 - Wireless Pilot Update & Evaluation Criteria
Page 5
RECOMMENDATION:
Staff feels it is certainly reasonable to re-visit these criteria and detail them as we move forward
with the pilot and the many turns in the road. Given emerging information, we should discuss the
project evaluation criteria in light of current and projected conditions and, more importantly,
current Council goals. Most importantly, what data will Council need to inform their decision
regarding the wireless project? Staff is seeking Council policy direction on these criteria and
hopes such criteria will be the focus of discussion on April 24.
Attachments:
• Subscriber Counts (as of April 19) by Pilot Area
• Subscriber Projections and Preliminary Sign-ups
• Moorhead Subscriber Data
• Updates from Other Local Municipal Wireless Efforts
• St. Louis Park Business Model Updates
• Maps of the four pilot areas showing phase buffers
Prepared By: Clint Pires, Director of Technology and Support Services
Approved By: Tom Harmening, City Manager
City Council Study Session
Discussion Item: 042406 - 3 - Wireless Pilot Update & Evaluation Criteria
Page 6
St. Louis Park Subscriber Count by Pilot Area 04-19-2006
NE SE NW SW
Total 99 119 49 34 301
0
Total Potential Subscribers 487 554 175 185 1401
% of Potential Subscribers 20% 21% 28% 18% 21%
Phase 1: 200
Phase 2: 65
Phase 3: 36
Cable Modem Service: 40%
DSL: 8%
Dial-Up: 40%
No Internet Access: 12%
City Council Study Session
Discussion Item: 042406 - 3 - Wireless Pilot Update & Evaluation Criteria
Page 7
Subscriber Projections and Preliminary Sign-ups
One of the pilot objectives is to test the expected subscriber makeup of a city-wide
implementation. In the surveys conducted the summer of 2005, it was seen that the expected
number of subscribers is highly dependant upon the price of the service. As seen in Table 1, the
percentage of subscribers switching from telephone based access drops drastically as
subscription fees are increased.
Table 1: Of those SLP residences, with Internet indicating
they would likely subscribe, what type of service they
currently have.
Price Range
Type of Service
Telephone DSL CM Wireless
Likelihood to
subscribe - up
to $20 per
month 56.29% 9.69% 33.44% 0.58%
Likelihood to
subscribe -
$21-$25 per
month 49.47% 11.70% 38.11% 0.72%
Likelihood to
subscribe -
$26-$30 per
month 37.75% 16.16% 44.74% 1.35%
Likelihood to
subscribe -
$31-$35 per
month 25.27% 24.37% 47.80% 2.55%
Likelihood to
subscribe -
$36-$40 per
month 29.43% 23.52% 43.63% 3.41%
Likelihood to
subscribe -
$41 or more
per month 25.06% 19.22% 52.63% 3.09%
City Council Study Session
Discussion Item: 042406 - 3 - Wireless Pilot Update & Evaluation Criteria
Page 8
Interestingly, the Pilot sign up results thus far are quite similar to the projections derived from
the surveys. These results are shown in Table 2. Please note that the comparison between Table 1
and Table 2 is between subscribers already having Internet access.
Table 2: Pilot Participants
Calculation Bases Type of Internet Service
Telephone DSL Cable None
Percentage with
New Internet Users 40% 8% 40% 12%
Percentage w/o
New Internet Users 45% 9% 45% NA
The Pilot sign ups and the projections from the survey are showing similar results (please note
that the survey had +/- 5 % tolerance).
Moorhead Public Service (MPS) has seen similar results. The breakdown of MPS subscribers is
show in Figure 1.
.
Fiqure 1: Type of Internet Service Before Switching to GoMoorhead
Cable Modem
28%
DSL
7%
Dial Up
53%
Wireless
0%
Satellite
0%
None
12%
City Council Study Session
Discussion Item: 042406 - 3 - Wireless Pilot Update & Evaluation Criteria
Page 9
Updates from Other Local Municipal Wireless Efforts
Chaska MN
• Customer growth has slowed; they serve 2,500 customers which represents 32% of total
potential customers, or a 45% market share (estimated).
• In process of doing a complete wireless network replacement.
o Original deployment supported only 802.11b
Customer top data rate seen was around 800 Kbps
o Upgrading to 802.11b/g
Equivalent to MPS’s deployment
Anticipate the ability of providing up to 3 Mbps service.
• Discussing expansion into other municipals in the Twin Cities.
o Saint Anthony Village
o Shakopee
o Victoria
o Shorewood
o Mound
o Chanhassen
• Migrated from internally staffed help desk to outsourcing to Siemens.
• Business model appears that operational expenses are supported from subscription revenues
while network P&I payments, and system maintenance from other funds.
Moorhead Public Service (MPS), MN
• Customer sign-ups were ahead of projections from September to December 2005. However
they are now behind plan.
o Marketing efforts ceased in November due to technical issues
o Currently support 1,800 customers (16% of all residents or 22% market share)
plus 1,600 college students.
MPS had 2,500 sign-ups, 700 customers have discontinued service.
30% market share required for break even cash flow.
• Service is intermittent for some customers.
o Bridges (network equipment installed at customer premises) appears to hop from
access point to access point eventually locking onto a weak signal.
Tropos claims that it is a bridge and an implementation issue.
The bridge manufacturer (EnGenius) claims it is a network and
implementation issue.
It appears to be a deployment, integration, and ongoing support issue.
• MPS contracted with the City of Moorhead for network
administration and support.
o Contracts never executed for support staff.
o MPS tried maintaining and operating network with 25% of
an IT person time, supplemented with part time staff
support.
This is a deviation of the plan.
City Council Study Session
Discussion Item: 042406 - 3 - Wireless Pilot Update & Evaluation Criteria
Page 10
Chaska has not seen the issue to the same extent.
• Chaska uses the same bridge, with an older version of the
network.
• After Chaska’s upgrade, Chaska and MPS will have similar
configurations (network version and customer equipment)
o Tropos has suggested a feature to minimize bridge hopping.
MPS has done limited testing, but have been reluctant to implement.
• Expenses have run approximately $200,000 over budget.
o Plan called for any professional installations to be paid for by customer.
MPS decided to offer installation and service calls for free.
• MPS ran a Beta test the summer of 2005
o Appears the issues were seen but not acted upon.
o Appears limited network testing done.
o Appears limited interaction with Beta customers occurred.
• SLP pilot is addressing the above issues and results will be fed into business plan model.
• It appears that limited integration and testing has led to difficulties in Moorhead.
o Customers with service are pleased.
Minneapolis MN
• Conducting 2 pilots this summer-fall
o EarthLink with a Tropos network
EarthLink hired technical leader from Chaska
o US Internet with a Motorola network
• Business model is similar to a cable TV franchise agreement (without a franchise fee).
o Minneapolis allows access to right-of-way and other assets in exchange for
wireless capacity access.
o Appears that Minneapolis is paying for a portion of the required fiber assets.
o Requires provider to provide a low cost service in distressed areas (performance
requirements (i.e. is it a 128Kbps service vs. a 1 Mbps service) not released.
• Selection of vendor will be dependant upon results of pilot.
• Final terms of agreement not settled or released.
St. Louis Park Business Model Updates
The pilot will provide valuable information and verification of assumptions for the business plan.
It is critical to note that the pilot does not reflect a representative sample of potential customers.
And feedback from potential customers indicates some folks are (understandably) reluctant to
sign up for a service whose future continuity is unsure.
Having said that, important feedback includes an answer to the question, “What will it take to
ensure a positive customer experience and their continuation of service?”
• Phase 1 of the Pilot provides the best emulation of a city-wide implementation.
City Council Study Session
Discussion Item: 042406 - 3 - Wireless Pilot Update & Evaluation Criteria
Page 11
o What is coverage of the Access Points (AP) in the pilot? How does it compare to
the estimates in the business plan?
o How many gateways (points of connection to the fiber backbone) are required to
maintain service levels? Will additional gateways and fiber be required?
o Did the provisioning of tiered services work technically? What is the impact of
tiered services to the average revenue per customer?
o What is the required configuration of the Customer Premises Equipment (CPE)
and installation?
Gain Antenna
Longer cross-over cable
Type of CPE (Router vs. bridge)
External installation
o What interaction is required with the customer to get service working?
Equipment distribution and demonstrations
Instruction sheet
Site visit
Help desk support
o What is reliability of AP’s, gateways, and CPE’s? What maintenance and
operational expenses are seen?
• Pilot experience.
o Is the value proposition sufficient for the customer to continue service?
o Will they recommend service to friends and neighbors?
Word of mouth will make or break the numbers.
• City-wide feedback and pre-registration.
o Does interest track survey results?
City Council Study Session
Discussion Item: 042406 - 4 - Motor Vehicle Sales Tax (MVST) Funding Support
Page 1
4. Motor Vehicle Sales Tax (MVST) Funding Support Administrative Services
PURPOSE OF DISCUSSION:
To discuss the details of the proposed MVST constitutional amendment and whether the City
Council desires to pass a resolution in support of the motor vehicle sales tax transfer?
BACKGROUND:
During the 2005 legislative session, the state legislature passed a constitutional amendment that,
if approved by voters, would phase-in 100% of the motor vehicle sales tax (MVST) to fund
transportation. MSVT is generated by new and used motor vehicle sales. Currently, the majority
of MVST funds are allotted between the general fund, the metropolitan transit fund, and the
highway user tax distribution fund.
While MVST is being discussed during the 2006 session (specifically around the ballot language
and the balance between transit and highway), the legislature has taken no formal action on the
MVST transfer. Unless changes are made, the 2005 ballot language will be on the 2006 general
election ballot.
If approved by voters, starting in 2007, 63.75% of the MVST would be dedicated to
transportation, with the phase-in completed by 2011. Within the allocated transfer, a minimum
of 40% of the MVST would be dedicated to transit project and a maximum of 60% could be
spent on road projects. Minnesotans for Better Transit estimates that the MVST transfer could
result in as much as $300 million earmarked annually for transportation.
The League of Minnesota Cities is asking cities to pass a resolution in support of the MSVT
transfer. The city of St. Louis Park would directly benefit if the Governors $2.5 billion
transportation bonding proposal passes through the legislature and if the constitutional
amendment is passed; specifically it would accelerate construction of the Trunk Highway 100
full build project as proposed in the Governor’s transportation plan. If the Council chooses to
pass a resolution, staff will prepare it for the May 1, 2006 Council meeting.
Attachments: MN House of Representatives – MVST transfer: current law
Office of the Governor – 2/1/06 transportation plan announcement
Pawlenty-Molnau 2006 Transportation Invest. Prop.
Pawlenty-Molnau 2006 Transportation Invest. Prop. - Metro Bond Projects
MSVT constitutional amendment
LMC legislative advocacy position on the MVST amendment
Draft resolution
Prepared By: Marcia Honold, Management Assistant
Approved By: Tom Harmening, City Manager
City Council Study Session
Discussion Item: 042406 - 5 - Future Study Session Agenda
Page 1
5. Future Study Session Agenda Planning Administrative Services
PURPOSE OF DISCUSSION:
To assist the City Council and the City Manager in setting the next Study Session agenda.
Background:
At each study session, approximately 15 minutes is set aside to discuss the next study
session agenda. For this purpose, attached please find the tentative agenda and proposed
discussion items for the regularly scheduled May 8, 2006 study session.
Attachments: Future Study Session Agenda Planning
Prepared By: Marcia Honold, Management Assistant
Approved By: Tom Harmening, City Manager
City Council Study Session
Discussion Item: 042406 - 5 - Future Study Session Agenda
Page 2
Future Study Session Agenda Planning
Monday, May 8
7:00 p.m. Study Session
A. 36th Street Streetscape Plan – Community Development (30 minutes)
Staff to present preliminary ideas for the West 36th Street streetscape.
B. Zoning Code Amendments – Community Development (60 minutes)
As a part of the zoning code update, Council to provide direction to staff about
building materials, signs, awnings and split lots to allow two single family homes
on parcels that have been combined into one lot.
C. Off-sale Liquor Licenses – Administrative Services (30 minutes)
Should the City Council consider limiting the number of off-sale liquor licenses?
D. Board and Commissions – Administrative Services (30 minutes)
Staff to present update to Council about the policies and procedures of the various
boards and commissions.
E. Future Agenda Planning – Administrative Services (10 minutes)
10:00 p.m. End of Meeting
City Council Study Session
Written Report: 042406 - 6 - Brunswick Ave/CP Railroad Ped Crossing
Page 1
6. Brunswick Avenue / CP Railroad Pedestrian Crossing Public Works
PURPOSE OF REPORT:
To inform Council of the proposed installation of a pedestrian crossing over the CP Railroad at
Brunswick Avenue and W. 32nd Street.
BACKGROUND:
During 2005 the street crossing (Brunswick Avenue) over the CP Railroad at W. 32nd Street was
removed. This was done in conjunction with the railroad crossing surface replacement
(concrete) at Dakota Avenue adjacent to the High School. Since the Brunswick Avenue crossing
removal last year, staff has monitored the situation and observed there are a significant number
of pedestrians crossing the tracks at this location year round. One resident on the north side of
the railroad track has complained about pedestrians walking through her yard. Staff has
discussed this situation with CP Railroad staff. Even though the need for a pedestrian crossing
was not expressed during the street crossing removal process last year, it appears there is a need
for a pedestrian crossing at this location.
IMPACTS:
In recent discussions, the CP Railroad has agreed to install a 12’ wide rubber surfaced pedestrian
crossing at this site at no cost to the City. The City would be obligated for any concrete,
bituminous surfacing and grading costs for a pathway outside the crossing - these costs are
minimal in this instance. Future snow removal costs for this crossing will be minimal as we
currently remove sidewalk snow in the immediate area. Whistles/horns will not be sounded at
this crossing as that is not required at pedestrian/trail crossings. Staff is not aware of any reason
this crossing can not or should not be installed.
PROCESS:
Unless Council has concerns with this pedestrian crossing installation, the following process will
be used to install this crossing:
1. Form/mobilize a staff/CP Rail project team to begin this work.
2. Notify adjacent residents of this proposed pedestrian crossing and consider their input
in the crossing design.
3. Approve/execute a crossing agreement with the CP Railroad.
4. Install the crossing.
5. Add this pedestrian/trail crossing – path to the City’s official sidewalk/Trail System at
a future update of the system.
SCHEDULE:
Staff expects this crossing can be installed during 2006 in conjunction with the West Lake Street
reconstruction project.
Prepared By: Mike Rardin, Director of Public Works
Approved By: Tom Harmening, City Manager
City Council Study Session
Written Report: 042406 - 7 – March 2006 Financial Statements
Page 1
7. March 2006 Financial Statements Finance
PURPOSE: REPORT
Attached are the March 2006 financial statements for the General Fund and the Park and
Recreation fund. The list below summarizes what is included in this packet.
1. Monthly financial statements for the overall general fund and park and recreation fund by
account summary level comparing the annual budget figures to the third month of 2006
actual figures.
2. Monthly financial statements for expenditures of the general fund by each department
and for expenditures of the park and recreation fund by each division that compares the
annual budget figures to the third month of 2006 actual figures.
Please note that a negative sign in front of a revenue figure indicates a positive number or rather
actual revenue received. In addition, when comparing the “Monthly Financial Report” to the
“Departmental Expenditure report”, the “Departmental Expenditure Report” does not include
budgeted or actual transfers nor miscellaneous expenses that are included as “other expense”.
In reviewing the March financial statements, it is important to note a couple of key factors that
had an impact this month to the monthly statements provided:
GENERAL FUND
In comparison from February’s to March’s monthly financial report, there were significant
increases in the March report in Charges for Services Revenue and Personal Services
Expenditures. Licenses and Permits, Fines and Forfeits and Intergovernmental Revenue all
experienced significant decreases.
• Charges for Services Revenue increased by approximately $48,000 which is attributable
to numerous property subdivision revenue totaling approximately $19,000, Engineering
Project reimbursements for $19,000, training revenue in Administrative Services for
$5,000 and Patrol Officer Services revenue for approximately $5,000.
• Personal Services Expenditures increased by approximately $170,000 which is a result of
three days more of payroll when compared to February.
• Licenses and Permits decreased by approximately $117,000 which is attributed to a
building permit for Excelsior and Grand in February.
• Fines and Forfeits decreased by $25,000 since the City has not yet received court fees for
the month of March.
• Intergovernmental Revenue decreased by approximately $206,000 which is attributed to
the D.O.T. State aid payment received in February.
City Council Study Session
Written Report: 042406 - 7 – March 2006 Financial Statements
Page 2
PARKS AND RECREATION
In reviewing the Park and Recreation fund, the monthly financial report shows increases in
Charges for Services Revenue, Miscellaneous Revenue, and Personal Services Expenditures.
Intergovernmental Revenue and Services and Other Charges Expenditures both showed
decreases.
• Charges for Services Revenue experienced an increase of approximately $99,000, of
which $76,000 was for adult, youth and family programs. The remaining $23,000 was
for season passes to the Aquatic Park.
• Miscellaneous Revenue increased by approximately $75,000 which is solely attributable
to increased ice rental.
• Personal Services Expenditures increased by approximately $24,000 which is a result of
three days more of payroll when compared to February.
• The decrease in Intergovernmental Revenue of $40,500 is attributable to a ReLeaf and a
Recycling grant in the amount of $26,500 and $14,000, respectively from February.
• The decrease in Services and Other Charges of approximately $187,000 is solely
attributable to the annual contribution to Community Education in February.
Additional reminders from previous reports:
• Since the City budgets on an annual basis, the budget numbers that appear on the monthly
financial reports are annual figures. However, the actual revenues and expenditures are
monthly figures. Therefore, you will see much fluctuation in the month to month
comparison.
• The interest revenue allocation is not yet reflected in the Year-to date actual numbers.
Therefore, interest revenue is showing as a negative number. This number will be offset
with the interest earnings once the allocation is completed.
• Due to the fact that overall revenues are low during the beginning months of each year,
the city keeps a reserve of approximately four months of expenditures for cash flow
purposes.
• The numbers for the year are not final until all year end adjustments are made to
accurately reflect the year’s activity and the fiscal year subsequently closed. This will
take place after the auditors’ complete their fieldwork.
Attachments: Monthly Financial Statements
Prepared By: Brian Swanson, Accounting Manager
Reviewed By: Jodi Bursheim, Assistant Finance Director
Approved By: Tom Harmening, City Manager