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HomeMy WebLinkAbout2006/09/25 - ADMIN - Agenda Packets - City Council - Study SessionCity Council Study Session September 25, 2006 7:00 PM Council Chambers Sue Sanger Out Discussion Items Approximate Times 1. 7:00 p.m. Friends of the Arts Update 2. 7:30 p.m. Procedure for 36th Streetscape and Art 3. 7:45 p.m. Village in the Park II Request for TIF Assistance 4. 8:15 p.m. Sanitary Sewer Back-up Policy 5. 9:00 p.m. Future Study Session Agenda Written Items 6. Bass Lake Site Update 7. Legislative Update 8. Community Liaison Recruitment Update 9. August 2006 Financial Statements 9:05 p.m. Adjourn Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call the Administrative Services Department at (952) 924-2525 (TDD (952) 924-2518) at least 96 hours in advance of meeting. City Council Study Session Discussion Item: 092506 - 1 - Friends Of The Arts Page 1 1. Friends of the Arts Update Park & Recreation/ Administrative Services PURPOSE OF DISCUSSION: Margaret Rog, Planning and Development Director for Friends of the Arts, will provide Council with an update of their 2006 activities. BACKGROUND: The City of St. Louis Park provided $20,000 to partially fund a leadership position for Friends of the Arts and Margaret Rog was hired in the spring to take on that role. Since her hire, she has been successfully advocating for the arts and building community awareness around the mission of Friends of the Arts. Ms. Rog has been working closely with the city on a number of arts related initiatives, including the Arts & Culture grants and the Vision team for Arts & Culture. Recently, Friends of the Arts moved their office into the Lenox Community Center to increase accessibility to community members. This update is intended to be informative in nature; Friends of the Arts would like to return again to Council in 2007 to discuss the future of arts in St. Louis Park (after the visioning process is completed). Items Ms. Rog will discuss with the Council at the study session include: 2007 programming plans; growing arts in St. Louis Park; membership development; and funding from grant-makers. As a related piece of information, Lenox Little Theatre has respectfully declined their reduced grant award from the SLP Arts & Culture Grants. Last week, the school district approached the city about wanting to fund a play around diversity in 2006 that would coincide with Book Mark in the Park. Dollars previously allocated to Lenox Little Theatre ($1,246) would be enough to fund two, perhaps three plays. Staff will be returning to Council on October 3 to recommend that the previously allocated SLP Arts & Culture funds for Lenox Little Theatre be granted to Friends of the Arts. Friends of the Arts can then work directly with the school district and the Book Mark in the Park committee to contract with a theatre company (likely Mixed Blood Theater) and schedule the performances. Prepared by: Cindy Walsh, Director of Parks & Recreation Marcia Honold, Management Assistant Approved by: Tom Harmening, City Manager City Council Study Session Discussion Item: 092506 - 2 - Procedure For 36th Streetscape And Art Page 1 2. 36th St. Streetscape and Public Art Initiative Parks and Recreation & Community Development PURPOSE OF DISCUSSION: Staff desires to discuss with the Council the approach proposed to be used to include public art in the West 36th St. Streetscape. BACKGROUND: Staff has been working with Jack Becker from FORCAST Public Artworks to generate ideas for public art along West 36th Street. At the August 7th council meeting, staff presented opportunities for art in the corridor. A task force, made up of residents, businesses and developers, have provided input and ideas. A goal of the West 36th Street revitalization effort is the integration and inclusion of public art as an amenity for motorists and pedestrians, as well as a destination. PROPOSED WEST 36TH STREET ART PROCESS: Staff is proposing that Jack Becker and his staff from FORCAST Public Artworks facilitate a Request for Proposal (RFQ) process for artists. This would give the City input into what types of public art could exist along the corridor as part of the streetscape and as stand alone art opportunities. Mr. Becker and his staff would use a process similar to what was used for Excelsior and Grand and for Louisiana Oaks Park. Through this RFQ process, artists will be responding to the following opportunities: 1. A corner plaza area in the future Rottlund Homes site at the intersection of Wooddale and West 36th Street. 2. The Hoigaards site along the west side of Highway 100. 3. Streetscape enhancements and amenities as opportunities for permanent art projects such as benches, trash receptacles, bike racks, paving patterns in the sidewalks, tree grates, and banners. FUNDING: The City of St. Louis Park has received money from Rottlund Homes and Hoigaards to be applied towards art projects. If we choose to create art in the streetscape or in other places along West 36th Street the City will likely have to contribute money also. While we don’t have a dedicated funding source currently, staff has discussed using some money from the sale of the excess land parcels. Staff will suggest funding sources once more definite costs for these projects is clear. The first step is to have FORCAST Public Artworks facilitate the RFQ process. The cost for facilitating the first phase of the process will be between $6,000 and $10,000. Staff is proposing that money from the Development Fund be used to pay for the initial cost of selection. NEXT STEPS: If the City Council is supportive of the RFQ process, staff will work with Jack Becker to send out the requests to artists and set up a selection review panel. In the past, the selection review panel has included representatives from the neighborhood, Friends of the Arts, developers, landscape architects, and staff. Prepared by: Cindy Walsh, Director of Parks and Recreation Reviewed by: Kevin Locke, Director of Community Development Approved by: Tom Harmening, City Manager City Council Study Session Discussion Item: 092506 - 3 - Village In The Park II Request For TIF Assistance Page 1 3. Village In The Park II at 36th Street and Wooddale Ave – Preliminary Request for Tax Increment Assistance from The Rottlund Company Community Development PURPOSE OF DISCUSSION: Staff wishes to review and receive feedback from the EDA/Council regarding The Rottlund Company’s (the “Redeveloper”) Pre-Application for tax increment financing (TIF) assistance to facilitate construction of the proposed Village In The Park II (VIP II) project. Specific items staff proposes to discuss include: • Site plan update • Project economics/amount of TIF assistance • Next steps Representatives from the EDA’s financial advisor, Ehlers & Associates, will also be in attendance Monday evening to address any questions relative to this request. In summary, The Rottlund Company has determined that its proposed VIP II project does not provide an adequate net return due to building demolition and environmental costs that are $300,000 higher-than-anticipated. The mixed use redevelopment to be located at the southeast corner of 36th Street West and Wooddale Avenue would include 77 age-restricted condominium units and approximately 15,240 square feet of commercial space. The market value of VIP II is estimated at approximately $20 million upon completion in 2008. Based on the discussion Monday night, if the EDA/Council determines the extraordinary costs merit reimbursement through TIF, staff would begin the process of negotiating a Redevelopment Agreement with the Redeveloper. As a reminder, the purpose of a Preliminary TIF Application is to allow a developer the opportunity to present a proposal to the EDA/Council in the initial stages of a project to determine if it merits TIF financing. Even if the EDA/Council should direct staff to analyze the developer’s request further, the EDA/Council is not obligating itself to providing the requested assistance. BACKGROUND: In early April 2004, The Rottlund Company purchased the former Quadion Corp manufacturing site for redevelopment purposes. The site included a group of parcels totaling 9.57 acres generally south of 36th Street and along both sides of Wooddale Avenue. In their place, Rottlund received approval to construct a two-phase housing development called “Elmwood Village” later renamed “Village In The Park”. The first and largest phase of the project is currently under construction west of Wooddale Avenue. Upon completion in mid-2007 it will consist of 77 New Urban Townhomes, 60 loft-style condominiums and 60 senior condominiums. All 197 units will be market rate. General redevelopment plans for the former commercial property east of Wooddale called for mixed use on the property and a small pocket park/plaza on the southeast corner of Wooddale and 36th Street. On August 2, 2004, the EDA agreed to provide the first phase of Rottlund’s project with $790,000 in Tax Increment Financing to assist with land acquisition, building demolition, and site preparation costs. City Council Study Session Discussion Item: 092506 - 3 - Village In The Park II Request For TIF Assistance Page 2 SYNOPSIS OF THE VIP II PROJECT: Rottlund recently submitted plans for a four-story mixed use building on the 2.13 acre site at the southeast corner of 36th Street and Wooddale Avenue. “Village In The Park II” will include 15,241 square feet of ground floor commercial space along the 36th Street frontage with three floors of residential above. All four stories on the Wooddale side of the building are planned as residential. The building will have a total of 77 market rate condominium units and 92 underground parking spaces. The units will be age restricted to seniors 55 years and older. The site plan also features a small pocket park or plaza at the very corner of 36th and Wooddale which will incorporate some form of public art. This public space is meant to serve as a neighborhood amenity as well as to aid sightlines at the intersection. THE REDEVELOPER: The Rottlund Company has been constructing homes in the Twin Cities area for 33 years and has been recognized as one of the top 100 builders and top 10 builders of multi-family housing in the United States. In addition to Village In The Park, the firm previously developed the 84 owner- occupied townhomes at Zarthan and 16th Street in St. Louis Park. LAND USE AND ZONING REQUIREMENTS: Like Phase I, VIP II is consistent with the City’s Elmwood Area Land Use, Transit and Transportation Study completed in February 2003. The project site is currently guided and zoned Mixed Use. The proposed redevelopment is consistent with both the land use and zoning designations. The project will also be subject to a PUD. PROJECTED PROPERTY VALUES AND TAXES: The subject redevelopment site consists of two parcels. Currently, these parcels have a combined market value of $1,025,000. The projected market value of the site upon redevelopment will be approximately $20 million. The total property taxes payable in 2006 on these two parcels was $29,936. Upon redevelopment, the site will generate an estimated $293,730 in property taxes. ANALYSIS OF PROJECT PROFORMA: The redeveloper’s proforma for the proposed VIP II project is summarized as follows: PROJECTED BUDGET: Uses Sources Land Acquisition $1,112,853 77 Senior Condos $18,669,376 Building Demolition 82,619 (ave. base price of $176/SF) Environmental Cleanup 173,133 Sale of Retail Space 853,000 Building Construction 12,754,281 (15,241 SF = $55.97SF) Arch & Engineering Fees 635,000 TIF 300,000 Warranty Costs 299,291 Marketing 1,557,091 Financing 1,290,659 Title & Recording 290,041 Soft costs 74,000 Post land development costs 325,600 Interest Reserve 500,000 TOTAL $18,681,452 Total Proceeds $19,822,376 Project Profit $1,140,924 Project Profit (% of cost) 6.1% City Council Study Session Discussion Item: 092506 - 3 - Village In The Park II Request For TIF Assistance Page 3 In its Preliminary TIF Application, Rottlund maintains the VIP II project, as required under the Mixed Use zoning and currently designed, does not provide an adequate net return due largely to a softening in the housing market but also due to higher than anticipated site preparation costs (such as asbestos abatement, building demolition, and environmental consulting). The proforma submitted by Rottlund shows a profit as a percent of cost equaling 6.1%. Such a net return would, in fact, be considered below market particularly for a mixed use project. Rottlund submitted evidence that it incurred or anticipates incurring $300,000 in extraordinary site preparation costs. Some of these environmental costs were not surprising as the TIF Inspection Report prepared to qualify the Elmwood TIF District noted that the buildings located east of Wooddale had “substantial environmental and contamination issues that will have associated costs during demolition”. Without some financial assistance to offset these extraordinary costs, Rottlund maintains that it would be difficult to redevelop the subject site as envisioned by the City. When the requested assistance for VIP II is combined with that provided in Phase I the total amount of TIF assistance to the Village in the Park project comes to $1,090,000. According to the TIF Cash Flow Analysis provided by Ehlers, it is likely that VIP II would generate the requested $300,000 in a year (on a net present value basis using a 5.75% interest rate and no inflation). This would extend the term of the TIF Note from three years to four years. As with Phase I, the assistance would be financed on a "pay-as-you-go" basis, which is the desired financing method under the City's policy. Compensating the redeveloper for the demolition and environmental costs associated with VIP II would not require a modification to the Elmwood Village TIF District Plan as sufficient dollars were originally included in the budget for these purposes. It would also not require a change to the TIF District’s boundaries as the subject parcels are already included within the District. As noted above, it would however, extend the term of the District by a year and correspondingly reduce the amount of TIF revenue available for other allowable public purposes (such as transportation improvements) within the Elmwood area. On the other hand, the City has an interest in seeing VIP II move forward as the subject site was originally projected to be redeveloped and the anticipated increase in the property value was included in the TIF Cash Flow Assumptions for the original Elmwood Village TIF District. Rottlund understands that it is responsible for the EDA’s legal and financial consulting fees associated with the review of its TIF application. INCLUSION OF LOOK BACK PROVISION: Clearly, $300,000 is not an insignificant amount of assistance, however, as part of a $20 million project it is a relatively modest level of assistance. Should the Redeveloper achieve cost savings in a few areas, or if it is able to sell its units for more than originally projected, the need for assistance may be reduced or eliminated. As in all of the EDA's Redevelopment Contracts, a "look back" provision will be included in any Contract for VIP II. This provision assures the EDA the opportunity to review Rottlund's gross margins after the final unit in the second phase is sold. The provision would state that should the project perform better economically than projected, any amount over the projected/agreed to net return would be split between the redeveloper and the EDA. In such a case, the EDA would reduce the amount of TIF assistance provided to Rottlund by the corresponding amount, up to a maximum of $300,000. City Council Study Session Discussion Item: 092506 - 3 - Village In The Park II Request For TIF Assistance Page 4 PRELIMINARY CONFORMANCE AND ANALYSIS UNDER THE CITY’S TIF POLICY: The proposed project meets the following housing-related goals as outlined in the City’s TIF policy: • Provides a balanced and sustainable housing stock to meet diverse needs both today and in the future • Promotes neighborhood stabilization and revitalization by the removal of blight and the upgrading of existing housing stock. The proposed project meets the following desired qualifications as outlined in the TIF policy: • It creates a higher ratio of property taxes paid before and after redevelopment and provides a significant increase in tax base. • It redevelops a partially vacant and underutilized building and site. • The project is consistent with the Comp Plan and zoning ordinance. • The developer is able to demonstrate past general development capability as well as specific capability in the type and size of development proposed. • The developer has demonstrated preliminarily that the project plan does not provide an adequate net return. In addition to the above, the proposed project could have several additional benefits: • Incorporates design features consistent with the Elmwood Area Land Use, Transit, & Transportation Study. • Serves as a catalyst for additional redevelopment activities within the Elmwood neighborhood and the stimulation of further private activity and investment in the area. • Provides for the financing and construction of public improvements in, and adjacent to, the redevelopment. CONFORMANCE WITH THE CITY’S BUSINESS SUBSIDY POLICY: Any proposed TIF assistance provided the subject project would be exempt from state business subsidy requirements as it relates to housing and redevelopment (Section 116J.993, subdivision 3, clauses 7 and 17). Therefore, no public subsidy hearing is required; however, it is still subject to a modified reporting requirement. OTHER REDEVELOPER CONTRIBUTIONS: For VIP II to proceed Rottlund will need approval of a preliminary and final plat, and a PUD. The platting process includes requirements for land and/or cash contributions for park and trail purposes. The PUD process also allows contributions for public art to be part of the consideration of approval of the applicant’s plan. Rottlund will contribute the area for a public space at 36th and Wooddale Avenue and $76,950 in park dedication fees and another $17,325 in trail dedication fees. The Redeveloper also recognizes the City’s interest in having a substantial piece of public artwork located in the pocket park at the southeast corner of 36th Street and Wooddale Ave. To that end, the Redeveloper has proposed to provide a $27,000 contribution for this purpose as part of its PUD request. This would be in addition to the $44,000 previously committed to this project from Phase I thus bringing Rottlund’s total contribution for the artwork to $70,000. City Council Study Session Discussion Item: 092506 - 3 - Village In The Park II Request For TIF Assistance Page 5 NEXT STEPS: Staff would like to receive feedback on The Rottlund Company’s Preliminary Application for TIF assistance. If the EDA/Council determines the extraordinary costs outlined above merit reimbursement staff would begin the process of negotiating a Redevelopment Agreement with the Redeveloper. Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Kevin Locke, Community Development Director Approved by:, Tom Harmening, City Manager/EDA Executive Director Attachments: Site Plan (supplement) City Council Study Session Discussion Item: 092506 - 4 - Sanitary Sewer Backup Policy Page 1 4. Sanitary Sewer Backup Policy Public Works PURPOSE OF DISCUSSION: To provide Council with follow up information and to request further direction in revising the City’s policy in responding to resident costs associated with sanitary sewer backups. BACKGROUND: At the July 10, 2006 Council Study Session, staff provided Council with basic information about sanitary sewer backups, i.e., causes, numbers, costs, insurance coverage, and the City’s current practice for responding to them. Council expressed concern over residents harmed by sewer backups through no fault of their own and expressed a desire to change our current practice; concern was also expressed over possibly large costs associated with helping residents. Council directed staff to develop ideas on how to implement a “no-fault” backup practice with limited cost exposure for the City. Staff was also asked to obtain cost and coverage information regarding sanitary sewer backup insurance available to private property owners. PERSONAL PROPERTY INSURANCE AVAILABILITY: Finance Department staff researched four insurance companies to determine insurance availability - Farmer’s Insurance Group, State Farm Insurance, American Family Insurance, and AllState Insurance. Staff found that sewer back-up coverage is generally available for residential property owners in Minnesota, but it varies by company. In general, the following information can be used in evaluating the various insurance coverage’s and costs available for residents: Coverage types dwelling, contents, appliances, cleanup Coverage costs from $25 to $245 per year (based on coverage amount and deductible) Coverage amounts available from $2,500 up to $35,000 Deductibles generally at $1,000 Insurance coverage’s and costs vary widely by company and property owners would be well advised to check with several companies before deciding on what company and coverage might best meet their needs. POLICY OPTIONS: Based on past known backups (about 12 per year estimated to currently cost about $50,000 per year), the following policy options were developed by staff to help in discussing/determining a new “no-fault” sewer backup policy. The following bolded options are recommended by staff for discussion purposes: 1. What backups should be considered for cost reimbursement by the City:  In City sewer lines  In privately owned sewer lines (i.e., Townhome Associations, etc)  In property owner service lines 2. What properties should be considered for cost reimbursement by the City:  Any dwelling unit or dwelling (as defined by the State Building Code) served with an individual service  Any residential property  Commercial properties  Industrial properties  Other properties  All properties City Council Study Session Discussion Item: 092506 - 4 - Sanitary Sewer Backup Policy Page 2 3. Costs eligible for reimbursement by the City:  Clean up (includes removal and disposal of all damaged property)  Building restoration (to original condition)  Damages to the following appliances - furnace, water heater, clothes washer and dryer, freezer, and dehumidifier  Damages to personal property (computers, clothing, mementos, valuables, televisions, stereos, furniture, etc.)  Lodging (if unable to live at property)  Food or meals (if unable to live at property) 4. Limit City reimbursement to either:  A maximum of $10,000 (beyond any insurance available to the insured) if the owner has either backflow insurance and/or a properly installed backflow prevention device; or  A maximum of $5,000 if an owner has neither insurance nor a properly installed backflow prevention device. (This approach is being suggested to encourage homeowners to either carry insurance and/or install backflow prevention devices) 5. Consider subsidizing the installation of basic backflow prevention devices which could reasonably cost from $1,000 up to $3,000 each to purchase and install:  Yes  No 6. Administered by LMCIT in conjunction with the City’s liability insurance:  Yes  No The staff recommendations above (bolded) attempt to minimize the risk of sewer backups and associated costs to residential property owners in the City. Responsibility is placed on property owners for self protection (backflow prevention devices and insurance coverage) while the City provides incentives for owners to protect themselves as well as provides cost reimbursements to owners should backups occur in City owned and maintained sewer lines. SUMMARY: Once Council provides direction on the options listed above, staff will prepare a draft policy and program description, a cost/rate analysis, an implementation strategy, and a public education plan. It is expected that implementing any of the above measures which will cost the City money will require a corresponding utility rate increase. Prepared By: Scott Anderson, Superintendent of Utilities Mike Rardin, Public Works Director Reviewed By: Bruce DeJong, Finance Director Brian Hoffman, Inspections Director Approved By: Tom Harmening, City Manager City Council Study Session Discussion Item: 092506 - 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 five 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 study session on October 9, 2006. Attachments: Future Study Session Agenda Planning Prepared By: Marcia Honold, Management Assistant Approved By: Tom Harmening, City Manager City Council Study Session Discussion Item: 092506 - 5 - Future Study Session Agenda Page 2 Future Study Session Agenda Planning Monday, October 9, 2006 6:30 p.m. Study Session starts Tentative Discussion Items A. 2007 Budget – Finance Department (60 minutes) Staff is asking for continued feedback from the Council on the proposed 2007 budget. B. Highway 100 – Public Works (45 minutes) Mn/DOT will be present to discuss Hwy 100 design options and cost implications. C. R-1 Zoning Study – Community Development (45 minutes) Staff to report back to Council with the results of the completed R-1 Zoning study, which will include an overview of what has been done and information and feedback gathered from the Planning Commission. D. Overview of Organizational Development Session - Administrative Services (10 min.) Staff to review the upcoming OD session and is looking for Council’s approval to proceed. E. Future Agenda Planning – Administrative Services (5 minutes) Report Assisted Housing Activity Update – Community Development 9:15 p.m. End of Meeting City Council Study Session Written Report: 092506 - 6 - Bass Lake Edi Update Page 1 6. EDI/ Bass Lake Property Update Community Development PURPOSE OF REPORT: To apprise the City Council of the progress being made under the Preliminary Development Agreement with United Properties relative to the possible location of Methodist Hospital’s Eating Disorders Institute (EDI) on the City’s Bass Lake property at 3515 Belt Line Boulevard. BACKGROUND: Listed below are some of the action steps that have occurred under the Preliminary Development Agreement with United Properties.  A Title Insurance Commitment obtained by Old Republic National Insurance Company confirmed that the subject parcel was obtained through tax forfeiture from the State of Minnesota.  Schoell Madsen completed an ALTA survey of the Bass Lake property that accurately depicts the site boundary and elevations along with the delineation of the adjacent wetland. The entire property is 5.91 acres.  Soil borings were obtained that quantified the site’s poor soil conditions. It was determined that bedrock is 62 – 67 feet under the surface and that any building(s) will likely require piling.  United Properties and its consultants have calculated the premium costs associated with constructing on poor soils (contamination aside).  Project architect Ellerbe Becket prepared a preliminary site plan which depicts a 3-story, 75,000 sf medical office building and three-level parking ramp.  Damon Farber and Associates will prepare alternative development concepts for the site (in conjunction with Ellerbe). These concepts will depict how the proposed medical building, parking ramp, undetermined civic use, trails, sculpture garden (?) and open space could function cohesively and together be compatibly integrated with the surrounding land uses.  St. Louis Park-based ENSR was retained to serve as the City’s environmental engineering consultant. ENSR is currently communicating with the MPCA in order to obtain a better understanding of what environmental clean up activities the agency will likely require in the project’s Response Action Plan. ENSR will also prepare cost estimates relative to these environmental activities.  ENSR tested for Dioxins on the subject site and determined that they did not achieve levels that exceed the MPCA’s threshold.  The Valuation Group was retained to provide the City with an appraisal of the subject property. It is expected to be completed by the end of September. City Council Study Session Written Report: 092506 - 6 - Bass Lake Edi Update Page 2 NEXT STEPS: In approximately a month, one or more proposed plans for the Bass Lake site will be prepared for the City Council’s consideration. Staff also hopes to discuss preliminary business terms of a proposed Development Agreement. In the interim, Councilmembers are asked to direct to staff any ideas, questions or concerns they may have about the proposed uses on the subject property. Prepared By: Greg Hunt, Economic Development Coordinator Reviewed By: Kevin Locke, Community Development Director Approved By: Tom Harmening, EDA Executive Director and City Manager City Council Study Session Written Report: 092506 - 7 - Legislative Update Page 1 7. Legislative Update – Glencoe Railroad Mitigation Project Administrative Services PURPOSE OF REPORT: To provide Council with an update on the federal appropriation request for $2 million dollars to fund the Glencoe Railroad Mitigation Project. BACKGROUND: The Minnesota State Legislature appropriated $700,000 in state funds to help McLeod County construct a railroad switchyard in the city of Glencoe to relocate existing rail blocking operations away from the cities of St. Louis Park, Hopkins and Minnetonka. At the same time, the city requested $2 million in funding from the federal government for the Glencoe Railroad Mitigation Project. In July, staff learned that Senator Norm Coleman was able to include $1 million for the project in the Fiscal Year 2007 Transportation, Treasury, Judiciary, Housing and Urban Development, and Independent Agencies Appropriations bill. While the $1 million is less than we had originally requested, if unencumbered, it could provide enough money to start construction for two rails of track (out of four needed) while we continue to seek additional dollars. The city has retained Dennis McGrann of Lockridge Grindal & Nauen P.L.L.P. Federal Relations Group to represent the City’s interest in Washington on this project. Dennis McGrann will be communicating with elected officials on both sides of the aisle to ensure they are fully aware of this important project and that it is eventually included in the final appropriations bill. Presently, this request is not included in the House version of this bill. Twin City & Western Railroad, and the cities of Hopkins and Minnetonka are also sharing in the cost of Mr. McGrann’s services. Staff will keep the Council updated as more information is available on this project. Prepared by: Marcia Honold, Management Assistant Approved by: Tom Harmening, City Manager City Council Study Session Written Report: 092506 - 8 - Community Liaison Recruitment Update Page 1 8. Community Liaison Recruitment Update Administrative Services PURPOSE OF REPORT: The purpose of this report is to provide an update on the replacement of our vacant outreach position of Community Liaison. BACKGROUND: Over the past months, we have been working with our outreach position to determine how to take our connections with neighborhoods to the next level. As you are aware, the outreach position was created eight years ago to strengthen our connections with neighborhoods. We have been very successful in connecting with neighborhoods and want to make these connections even stronger. Review of Outreach Functions After review of the position, discussion with staff, and listening to the council comments from the spring workshop, we determined it was time to readjust the responsibilities of this position to allow more focus on neighborhoods. To make sure the position had time to grow in the area of connecting with neighborhoods, the following functions were moved from the liaison position to other areas: • Connections with volunteers moved to Human Resources. • United Way activities moved to Human Resources. • Vision SLP activities moved to our Organizational Development Coordinator with support from Administrative Services. • Connection with STEP moved to Community Development. • Coordination of city hall bulletin boards and postings moved to Support Services. • Information sharing including development of welcome and rental packets moved to Communications. Making Stronger Connections We also discussed where outreach should be located from an organizational perspective in the city to build on connections with our community. Since we have strong outreach efforts and community oriented operations in our Police Department, including connections with block captains, it was determined that moving outreach to this department would be a great opportunity to build on our neighborhood connections. Another need we have is to make sure this position has a stronger emphasis on working directly with all of our departments. The objective is to increase the amount of support in reaching out to our neighborhoods and connecting with staff on activities. To do this, outreach must have strong connections internally to help support all the efforts that are happening in our community, and actively work with the departments to help get more information out into our neighborhoods. To increase connections with our departments, we will start a community connections group which will consist of staff members from each department. The purpose of the group will be to meet regularly and have conversations about city activities and how to coordinate with our neighborhoods. Stronger connections to our rental community will also be added to our outreach efforts. City Council Study Session Written Report: 092506 - 8 - Community Liaison Recruitment Update Page 2 Our Community Liaison position will continue to be the staff liaison to the Human Rights Commission. This position will also deal with many other outreach activities as needed in our community and as support to all city departments. Recruitment We are in the process of filling the position and look forward to even stronger connections to our community in the future by combining our efforts and building on the strengths. Prepared by: Nancy Gohman, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City Council Study Session Written Report: 092506 - 9 - August 2006 Financial Statements Page 1 9. August 2006 Financial Statements Finance Attached are the August 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 eighth 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 eighth 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 August 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 July’s to August’s monthly financial report, there was a significant increase in August within Personal Services expenditures, while General Property Taxes, Intergovernmental revenue, Charges for Services revenue and Supplies expenditures experienced significant decreases. • Personal Services increased by approximately $112,000 which is attributed to two extra days of payroll when compared to July. • General Property Taxes decreased by $5,638,811 which is a result of property taxes paid to the City from Hennepin County three times a year. • Intergovernmental revenue decreased by approximately $253,000 which is attributed to the first installments of the Highway User Tax and P.E.R.A. aid received in July for $220,000 and $22,000 respectively. In addition, an operating grant for E-911 funds was received for approximately $11,000 in July. • Charges for Services revenue decreased by approximately $41,000 due to one month of Housing Authority salaries reimbursement paid in August instead of two in July. • Supplies decreased by approximately $28,000 which is entirely attributable to decreased purchases of asphalt for Public Works - Operations. City Council Study Session Written Report: 092506 - 9 - August 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 Services and Other Charges expenditures, while General Property Taxes and Special Assessments experienced decreases. • Charges for Services revenue increased by approximately $19,000 which is attributable to increases in D.E.D. tree removal and injections for $41,000 and $31,000 respectively. Pool and concession revenue decreased by approximately $53,000 as the season wound down. • Miscellaneous revenue increased by approximately $60,000 which is attributable to an increase of about $52,000 in ice rentals and $8,000 in room rentals at the Recreation Center. • Services and Other Charges Expenditures increased by approximately $98,000 which is attributed to the following items: injection and removal of D.E.D. trees for approximately $32,000 and $59,000 respectively; increased sanitations services for about $7,000. • General Property Taxes and Special Assessments experienced decreases of $1,442,449 and $35,332 respectively, which is a result of property taxes and special assessments paid to the City from Hennepin County three times a year. 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. Attachments: Monthly Financial Statements Prepared By: Brian Swanson, Accounting Manager Reviewed By: Jodi Bursheim, Assistant Finance Director Approved By: Tom Harmening, City Manager