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HomeMy WebLinkAbout2004/03/01 - ADMIN - Agenda Packets - City Council - RegularAGENDA SUMMARY CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA March 1, 2004 7:30 p.m. 7:25 p.m. – Economic Development Authority Study Session to Follow Immediately After Regular Meeting 1. Call to Order a. Pledge of Allegiance b. Roll Call 2. Presentations 3. Approval of Minutes a. City Council Minutes of February 17, 2004 Document b. City Council Study Session Minutes of February 17, 2004 Document c. Joint City Council/School Board Minutes of February 9, 2004 Document d. City Council Study Session of December 8, 2004 Document Action: Corrections/amendments to minutes - Minutes approved as presented 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. Action: Motion to approve the agenda as presented and to approve items listed on the consent calendar (Alternatively: Motion to add or remove items from the agenda, motion to move items from consent calendar to regular agenda for discussion and to approve those items remaining on the consent calendar). 5. Boards and Commissions 6. Public Hearings 6a. Public Hearing to Consider Allocation of 2004 Community Development Block Grant Funds Document Resolution approving the proposed use of $240,406 of 2004 Urban Hennepin County CDBF Funds, reallocation of 2002 funds, and authorizing execution of Subrecipient Agreement with Hennepin County and any related Third Party Agreements. Recommended Action: Mayor to close the public hearing. Motion to adopt the Resolution approving proposed use of funds for 2004 Urban Hennepin County Community Development Block Grant funds, reallocation of 2002 funds, and authorizing execution of Subrecipient Agreement with Hennepin County and any related Third Party Agreements 7. Requests, Petitions, and Communications from the Public - None 8. Resolutions, Ordinances, Motions 8a. Request of TOLD Development Company for a Major Amendment to the Park Commons East Planned Unit Development to convert four two-story units to eight one-story units thereby increasing the number of units for Phase NE (Excelsior & Grand Phase II) from 120 to 124 at 3707 and 3709 Grand Way. Document Case Nos. 04-03-PUD Lot 1, Block 1, Park Commons East 2nd Addition. Recommended Action: Motion to adopt a resolution approving the Major Amendment to the Park Commons East PUD granting Final PUD approval for Phase NE (Excelsior & Grand Phase II) subject to conditions included in the resolution and authorize the Mayor and City Manager to execute amendments to the Planning Contract. 8b. Confirmation of Appointment of Nancy Gohman as Deputy City Manager Document Recommended Action: Motion to adopt resolution confirming the appointment of Nancy Gohman as Deputy City Manager effective March 1, 2004 8c. Resolution approving Local 49 Union agreement for 1/1/2004 - 12/31/2005 Document Approval of 2-year agreement with Local 49 Maintenance settling the City and Union for 2004 & 2005. Recommended Action: Motion to adopt a resolution approving a Labor Agreement between the City and International Union of Operating Engineers (IUOE), Local 49 AFL-CIO, establishing terms and conditions of employment for two years: 1/1/04 – 12/31/05. 8d. Phase II Dispatch Consolidation Study Document Recommended Action: Motion to approve entering into a contract for professional services with PSC Alliance for the Phase II Dispatch Consolidation Study contingent upon receipt of written commitments from the three other participating communities. 8e. Refunding of 1996 General Obligation Tax Increment Bonds Document This action will award the sale of $7,530,000 General Obligation Tax Increment Bonds. The proceeds of the bond sale will be placed in escrow until February 1, 2005. At that time they will be used to payoff the 1996 General Obligation Tax Increment Bonds. Recommended Action: Motion to approve resolution sale of refunding bonds and approve refunding escrow agreement. 8f. City Engineer’s Report: 2004 Sidewalk Improvement Project, City Project No. 04-02 Document This report considers the construction of various sections of new sidewalk in accordance with the city’s sidewalk, trails, and bikeway plan Recommended Action: Motion to adopt the attached resolution to accept this report, establish the improvement project, and direct staff to sponsor informational meetings with affected property owners, for construction of various sections of concrete sidewalk. 9. Communications 10. Adjournment 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. ST. LOUIS PARK CITY COUNCIL MEETING OF MARCH 1, 2004 SECTION 4: CONSENT CALENDAR NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. 4a Motion to accept a portion of the Excelsior and Grand Phase One Public Improvements Document 4b Encroachment Agreement 3501 Louisiana Ave S 4c Motion to approve Resolution authorizing Renewal of Gambling Premises Permit for St. Louis Park Hockey Boosters Association operating at Bunny’s Bar and Grill, 5916 Excelsior Blvd. Document 4d Motion to adopt the attached Resolution to approve St. Louis Park Lions Club’s application for the placement of 14 temporary signs in the public right-of-way. Document 4e Motion to approve a 6 month extension of Shelard Homes (Lurie Apartments) Conditional Use Permit until September 3, 2004. Document 4f Motion to adopt a resolution requesting reimbursement for Capital Improvement Projects from the anticipated 2006 General Obligation Bond issue Document 4g Motion to designate A Topnotch Treecare Service, Inc. as the lowest responsible bidder and authorize execution of a contract for the 2004 Boulevard Tree and Stump Removal Program in an amount not to exceed $60,337.12 Document 4h Motion to designate Emery’s Tree Service, Inc. as the lowest responsible bidder, and authorize execution of a contract for the 2004 private diseased tree removal program in an amount not to exceed $155,400 Document 4i Motion to designate Rainbow Tree Care, Inc. as the lowest responsible bidder and to authorize execution of a contract for the 2004 Arbotect 20-S Elm injection program at a cost of $9.50 per diameter inch Document 4j Motion to accept for filing Planning Commission Minutes of February 4, 2004 Document 4k Motion to accept for filing Planning Commission Study Session Minutes of February 4, 2004 Document 4l Motion to accept for filing Telecommunications Advisory Commission Minutes of December 4, 2003 Document 4m Motion to accept for filing Human Rights Commission Minutes of January 21, 2004 Document 4n Motion to accept for filing Vendor Claims (Supplement) AGENDA SUPPLEMENT CITY COUNCIL MEETING MARCH 1, 2004 Items contained in this section are those items which are not yet available in electronic format and which are identified in the individual reports by inclusion of the word “Supplement”. St. Louis Park City Council Meeting 030104 - 3a - City Council Minutes of 2-17-04 Page 1 of 4 UNOFFICIAL MINUTES CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA February 17, 2004 1. Call to Order Mayor Jacobs called the meeting to order at 7:30 p.m. Councilmembers present: Phil Finkelstein, Paul Omodt, Susan Sanger, Sue Santa, Sally Velick and Mayor Jeff Jacobs. Staff present: City Manager (Mr. Harmening), Public Works Director (Mr. Rardin), Utilities Superintendent (Mr. Anderson), City Engineer (Ms. Hagen), Planning Coordinator (Ms. Erickson), Engineering Program Coordinator (Ms. Adler), and Recording Secretary (Ms. Olson). 2. Presentations – None 3. Approval of Minutes 3a. City Council Minutes of February 2, 2004 The minutes were accepted as presented. 3b. Study Session Minutes of February 2, 2004 From Councilmember Velick: Item 2, Page 4, 2nd paragraph, Line 5, change what makes a worthy TIF project to what makes this project a worthy TIF project. From Councilmember Sanger: Page 3, Paragraph 4, deletion of Results from the discussions are as follows as well as the following columns. A motion was made to accept the changes to the study session minutes of February 2, 2004. The motion passed 6-0. 3c. Study Session Minutes of January 26, 2004 From Councilmember Velick: Page 3, 1st Paragraph, change Talmud Torah to Wayside House. 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. 4a Approve Resolution No. 04-027 for renewal of the 2004 liquor licenses listed on the resolution contingent upon receipt of all appropriate documentation. St. Louis Park City Council Meeting 030104 - 3a - City Council Minutes of 2-17-04 Page 2 of 4 4b Adopt Resolution No. 04-028 supporting an application for state funding of a City project for the construction of local trail connections to the regional trail system 4c Accept Vendor Claims for filing (Supplement) 4d Accept for filing the Human Rights Commission Minute of December 17, 2004 4e Accept for filing the Planning Commission Minutes of January 21, 2004 4f Accept for filing the Housing Authority Minutes of January 14, 2004 It was motioned by Councilmember Velick, seconded by Councilmember Sanger, to approve the agenda and the items listed on the consent calendar. The motion passed 6-0. 5. Boards and Commissions – None 6. Public Hearings – None 7. Requests, Petitions, and Communication from the Public – None 8. Resolution, Ordinances, Motions 8a. First Reading of an ordinance authorizing the sale of City real property to Excelsior & Grand II, LLC. Mr. Harmening reported that when land was being conveyed to Excelsior and Grand, LLC for Phase II of the project, it was discovered that a small portion of property was still owned by the City. The ordinance will correct the omission from the previous conveyance. It was motioned by Councilmember Sanger, seconded by Councilmember Santa, to approve first reading of an ordinance authorizing the sale of City real property to Excelsior & Grand II, LLC and set second reading for March 15, 2004. The motion passed 6-0. 8b. Resolution Approving the Residential Street Maintenance and Rehabilitation Program. Resolution No. 04-026 Ms. Hagen gave an overview of the program stating that maintenance is similar to house repairs where both superficial and structural maintenance needs occur. The program attempts to be proactive as the streets are currently in good condition. She stated that there is currently 153 miles of streets and the average condition is 69.6 on a scale of 100 points. The streets had been built in the 1960’s to early 80’s. Ms. Hagen stated that by applying maintenance at the right time, you create a longer life for the street. She stated that the program is a best first program. She explained that the plan calls for St. Louis Park City Council Meeting 030104 - 3a - City Council Minutes of 2-17-04 Page 3 of 4 maintaining the best streets first to prolong their life while streets in poor condition deteriorate to the point of reconstruction. She stated that the city has been separated into eight areas so there would be a revolving cycle of maintenance. Ms. Hagen explained that the areas are defined by neighborhood lines so that communication with the neighborhoods could easily be handled and the disruption of street maintenance would be isolated into one area of the city. She stated that they would also coordinate private and public utility repairs for the same time maintenance was being conducted. Ms. Hagen went on to say that unimproved streets would not be constructed using this process, but would go through the special assessment process. She stated that funding would come from the utility funds and franchise fees. Councilmember Omodt asked how the rating of the streets compared with other communities. Ms. Hagen stated that most communities are at the same level currently and aimed toward maintaining that level. Councilmember Omodt then inquired who would initiate the special assessment process for unimproved streets and Ms. Hagen replied that it is left to the homeowner to initiate the process. Councilmember Velick asked for clarification on maps. Ms. Hagen replied that the maps show when seal coating and pavement repairs for the first area are to be implemented. Councilmember Finkelstein inquired if they could require the contractors to work with residents on their driveways at the same time as the streets are done. Ms. Hagen replied that some contractors may be willing to work with the residents depending on their work load, others may not. Councilmember Sanger inquired when the neighborhoods will be contacted and Ms. Hagen replied that it would be late summer. She added that they were aiming to give each area approximately one year’s notice. It was motioned by Councilmember Sanger, seconded by Councilmember Velick, to approve the Resolution No. 04-026 adopting the City’s Residential Street Maintenance and Rehabilitation Program. The motion passed 6-0. 8c. First Reading of the proposed Ordinance Code for the Stormwater Ordinance Mr. Anderson gave a brief review of the amendments to the Clean Water Act. He reported that one of newest amendments requires the establishment of a stormwater ordinance. He stated that staff had met from various departments and decided to combine all ordinances regarding stormwater into one ordinance that addresses those issues. Councilmember Finkelstein inquired if additions or garages would require residents to go through the city permitting process and Mr. Anderson replied that it would not but residents may have to pull a watershed permit depending on the amount of earth moved. St. Louis Park City Council Meeting 030104 - 3a - City Council Minutes of 2-17-04 Page 4 of 4 Councilmember Sanger had concerns about removing the requirements for the CUP process. Ms. Erickson stated that the only deletions were in regard to erosion control. She stated that this issue would be brought back to the Planning Commission first and will then move on to Council. It was motioned by Councilmember Santa, seconded by Councilmember Omodt, to approve first reading of the proposed ordinance code for the stormwater ordinance and set the second reading for March 15, 2004. The motion passed 6-0. 8d. First Reading of Zoning Text amendment to delete Section 36-80 Erosion Control Ms. Erickson explained that the item was brought before the Council because the requirements for Zoning Code amendments are a little different than others. She stated the amendments are to delete only Section 36-80 relating to erosion control from the ordinance code. Ms. Erickson reported that the item had gone to the Planning Commission and they recommended approval. It was motioned by Councilmember Sanger, seconded by Councilmember Velick, to approve first reading of the ordinance amending Chapter 36 of the Municipal Code to delete Section 36-80 Erosion Control subject to adoption of the stormwater ordinance and set second reading for March 15th, 2004. The motion passed 6-0. 9. Communications Mr. Harmening reminded Council and the public of the upcoming Home Remodeling Fair. He reported that it is a joint effort put out by Golden Valley, Hopkins, St. Louis Park, and Minnetonka. He stated that the program is completely self-sufficient. Mayor Jacobs expressed his condolences to Councilmember Basill on the recent passing of his mother-in- law. Councilmember Velick reported that an article on the Excelsior & Grand project was on the front page of USA Today. Mayor Jacobs added that there was also an article in the Star Tribune over the weekend. 10. Adjournment The meeting was adjourned at 8:05 p.m. ______________________________________ ______________________________________ City Clerk Mayor St. Louis Park City Council Meeting 030104 - 3b - Study Session Minutes of Feb. 17, 2004 Page 1 of 2 UNOFFICIAL MINUTES CITY COUNCIL STUDY SESSION Minutes of February 17, 2004 The meeting convened at 8:10 p.m. Present at the meeting were Councilmembers Phil Finkelstein, Paul Omodt, Susan Sanger, Sue Santa, Sally Velick and Mayor Jeff Jacobs. Staff present: City Manager (Mr. Harmening), Planning Coordinator (Ms. Erickson), and Recording Secretary (Ms. Olson). 1. Usable Open Space Mr. Harmening reported that there are two areas of concern that deal with single family usable space and higher quality multi-family open space. He stated that it was a timely discussion as they look at accommodating expansion on single family lots as part of the housing summit process. Ms. Erickson gave a presentation and presented three goals staff has been trying to accomplish. She stated that staff would like to redefine open space and make it easier to interpret and bring quality housing to the city. She went on to explain the two terms that would replace the term open space. The first is Designed Outdoor Recreational Area (DORA) that applies to multi- family housing and is suited to the needs of the residents and/or employees. The second is Open Lot Area that applies to the back yard of single family lots. She mentioned that the term rear yard that had been previously used has been changed to the definition of back yard. Ms. Erickson then presented a table that explained the changes in the square footage of open lot space. Councilmember Sanger had concerns regarding ponds designated only for stormwater retention. Councilmember Velick suggested adding language that outdoor recreational space be suited only for the residents and/or employees. Ms. Erickson stated that they were heading towards a more inclusive and community oriented intent. Councilmember Finkelstein and Mayor Jacobs felt that they needed to encourage community interaction. Councilmember Finkelstein had concerns with the definition of steep slopes and how to interpret what would be classified as steep. Councilmember Santa stated that the dictionary definition states that steep is ‘not easily climbable’. Councilmember Sanger felt that they had to trust in staff to interpret the definition of the code. Councilmember Finkelstein agreed. St. Louis Park City Council Meeting 030104 - 3b - Study Session Minutes of Feb. 17, 2004 Page 2 of 2 Ms. Erickson suggested inserting a ratio to define steep and felt they could define a number. Mayor Jacobs didn’t feel that it was necessary to define a number but wanted to raise the issue that it is up to staff to define what is classified as steep. Councilmember Sanger would like to add a conceptual statement on what DORA (Designed Outdoor Recreational Area) is intended for. Mr. Harmening stated that there is similar subjective text in the zoning code. Councilmember Velick inquired if these changes make the process easier, more consistent, or more difficult. She felt that it would be more difficult for developers to understand the ordinance. Mr. Harmening felt that it may be more difficult to meet the new standards but they were raising the bar on the quality level of land usage. Mayor Jacobs felt that the changes forced higher quality developments. Council discussed several other developments throughout the city, including the Quadion site, and the result of the open space requirements. Councilmember Sanger had concerns about bigger lots being subdivided. Mayor Jacobs felt these changes create a better opportunity for move-up housing. Councilmember Sanger expressed her concerns about the need of the property owner versus the collective neighborhood. Councilmember Sanger felt that the 600 square foot requirement should be maintained and then revisit the issue after a period of time. Mr. Harmening stated that the principle building can only occupy of 30% of the lot area and there are setback requirements. Councilmember Velick stated that she had received calls from concerned constituents regarding this issue. Both Councilmembers Velick and Finkelstein agreed with Councilmember Sanger’s earlier suggestion. Council discussed maintaining consistency in the character of the neighborhoods. Mayor Jacobs felt that the proposed changes allowed for move up housing. Mayor Jacobs inquired if the council agreed to move in incremental steps by maintaining the 600 square foot requirement in R1 districts but move forward with the back yard definition. Council discussed and agreed to move forward in that manner. 2. Adjournment The meeting was adjourned at 9:03 p.m. ______________________________________ ______________________________________ City Clerk Mayor St. Louis Park City Council Meeting 030104 - 3c - Joint School Board and Council Minutes 2-9-04 Page 1 of 4 Unofficial Minutes Joint City Council / School Board Meeting City Hall, City Council Chambers February 9, 2004 A reception welcoming school board members commenced at 7:00 p.m. with the business meeting being convened at 7:30 p.m. Councilmembers present: John Basill, Phillip Finkelstein, Paul Omodt, Sue Santa, Susan Sanger, Sally Velick, and Mayor Jeff Jacobs. School Board members present: Keith Broady, Rolf Peterson, Nancy Gores, Jim Yarosh, Jerry Timian, Julie Sweitzer, Bruce Richardson. City Staff present: City Manager (Mr. Harmening), City Clerk (Ms. Reichert) School District staff present: Interim Superintendent (Mr. Walker); Community Education Director (Ms. Severaid) Mayor Jacobs again welcomed school board members and thanked them for their attendance. Mayor Jacobs stated the desired meeting outcomes which were: information sharing, enhancing the relationship between School District and the City; and, strengthening the Partnership of the School District and the City. He also referred to the agenda for the evening. 1. Budget Deficit – School Chair Broady outlined some of the budget problems facing the district and informed persons present of how progress was being made to address the significant funding decreases experienced by the district. A combination of program cuts, reductions in facility costs and staff reductions are being implemented to address the problem. Boardmember Timian also pointed out that despite the decreases in funding, the district continues to offer quality programs and services and continues to attract good students to St. Louis Park. 2. City Budget Mr. Harmening presented an overview of steps that had been taken by the city in dealing with funding reductions. Like the schools, a combination of program cuts and staff reductions were implemented. In addition, the city was able to tap into a new revenue source through the implementation of franchise fees and was spending down fund reserves. 3. Facilities St. Louis Park City Council Meeting 030104 - 3c - Joint School Board and Council Minutes 2-9-04 Page 2 of 4 Brookside – Boardmember Yarosh gave a brief overview of the history of the Brookside building, including information about the current purchase offer being considered. Councilmember Basill commented on neighborhood involvement stating that there was some general support for the proposal, but density was an issue of concern to many of the neighbors. Mr. Harmening stated that the city had not yet received any plans for review from the developer. Lenox – Ms. Severaid informed the group that the district is covering all of the operating costs of the Lenox building which houses the SLP Senior Program. The city does contribute funds to the Community Ed programs, but that contribution cannot be used for operating costs such as facility staff and utilities. She stated that there is some legislative authority for the school to seek funding for operating costs, but only at buildings which the district does not own. She suggested the city partner with the schools in exploring options for taking advantage of that levy authority. Eliot - Improvements need to be made to the Eliot building in order to preserve their primary tenant, District 287. The district is working with Ehlers and Associates to seek funding which may require participation from a 3rd party. The city may want to consider participating. Councilmember Velick said she was receiving questions from residents in the area regarding timing of any work that may be done at the site. Mr. Walker asked what kind of timeline worked best in dealing with public process. Councilmember Santa responded that the public process should begin right away and that it was the city’s practice to begin communications with all interested parties as soon as rumors started. Mayor Jacobs followed up by saying he felt it was acceptable to begin informing the public by saying “we don’t know” and that even that was more palatable to interested parties than no communications at all. Mr. Harmening offered to work with Mr. Walker on a process that would involve both the city and the district. 4. STEP Mr. Harmening informed the group of steps taken so far to find a new office space for STEP. Some options available to the organization were to accept an offer of free space at the former Luggage World location, or a lease to own option near the space currently occupied by the Emergency Food Shelf. Ms. Severaid stated that the STEP offices will remain at the Brookside location until such time as they are required to leave by the new owners. STEP continues to work on identifying funding sources. 5. School Foundation Boardmember Timian reported that the foundation was entering their second year and was quite satisfied with the performance of the foundation at this time. 6. Children First St. Louis Park City Council Meeting 030104 - 3c - Joint School Board and Council Minutes 2-9-04 Page 3 of 4 Mr. Harming stated that Children First is still very successful in the community and that the board is working to identify dedicated funding sources. Two sources that had been relied on heavily in the past were not longer available. 7. Superintendent Search Process Boardmember Sweitzer reported that they are working to identify a professional search firm and were hoping to have a new superintendent in place sometime during the summer of 2004. Chair Broady stated that the board hoped to involve members of the public and other interested parties in the process in the beginning, when needs are identified and again at the end when finalists are identified. He was concerned about privacy issues for applicants, but wanted input from others regarding the new Superintendent. 8. Youth/Senior Summits Mayor Jacobs was very pleased with participation in last years’ summits and was hoping for even more successful events in 2004. The youth summit is scheduled for April 29th and the senior summit is scheduled for June 30th (note: date has been confirmed). Mayor Jacobs invited all school board and city council members to attend the summits. 9. School District Levy Boardmember Richardson stated that the referendum was extremely important in that the coming referendum was a renewal of referendums adopted by the voters in years past. School board members were working with Bill Morris of Decision Resources as an advisor. The choice facing the district was whether to place their questions on the ballot at the presidential election of 2004, or to wait until the local election of 2005. Ms. Reichert stated that the projected voter turnout at the 2004 election was 70%, while the projected turnout at the next local election was about 15%. During budget cut talks, the council had considered combining local elections with federal and state elections and eliminating the odd-year local elections entirely. They chose to continue odd-year, local elections however, due to the reality that the odd-year elections produce a smaller, but better informed voter pool. Councilmember Sanger suggested that the city and school board work together to educate voters on budget issues facing both entities. She felt that Councilmembers could be of great assistance in helping to educate voters about the need to pass the referendum. 10. Development Project Update Mr. Harmening gave a report on commercial and housing development in the city saying that development was continuing at a brisk pace. Boardmember Timian asked if any conclusions had been drawn from the Housing Summit process currently underway. Mr. Harmening responded that the Housing Summit group was considering many issues related to housing, and that no firm St. Louis Park City Council Meeting 030104 - 3c - Joint School Board and Council Minutes 2-9-04 Page 4 of 4 conclusions had yet been drawn from the study. He also stated that St. Louis Park was well on its way to meeting Met Council housing goals set for our city. 11. Next Meeting Mayor Jacobs suggested the two boards meet again to continue discussions. He felt that both groups could be more effective if communication lines remain open. Items suggested for a possible future agenda were suggested by members present. Topics suggested were: * Referendum * Restoration of Community Education and ECFE Funding * Vision SLP * Public Process and Involvement Chair Broady suggested that summer, after a new school superintendent is in place, may be a good time for a next meeting of the two groups. 12. Adjournment The meeting adjourned at 9:45 p.m. St. Louis Park City Council Meeting 030104 - 3d - Study Session Minutes of 12-8-04 Page 1 of 4 UNOFFICIAL MINUTES CITY COUNCIL STUDY SESSION Minutes of December 8, 2003 The meeting convened at 7:06 p.m. Present at the meeting were Councilmembers John Basill, Jim Brimeyer, Paul Omodt, Susan Sanger, Sue Santa, Sally Velick, and Mayor Jeff Jacobs. Staff present: Human Resources Director (Ms. Gohman); Economic Development Coordinator (Mr. Hunt); Planning and Zoning Supervisor (Ms. Jeremiah); Planning Coordinator (Ms. Erickson); and Recording Secretary (Ms. Samson). Mr. Harmening, Community Development Director/Acting City Manager, joined the Study Session after the discussion regarding the City Manager Interview Process. Others present: Ron Mehl, Stonebridge Development & Acquisition, LLC; Mr. Anderson from Anderson Builders; Bill Greg, consultant from ENSR; and Stephen Bubul, EDA Counsel from Kennedy & Graven. Mr. Bubul arrived at 9:43 p.m. 1. City Manager Interview Process Ms. Gohman reported that the City Manager Profile has been completed, and she distributed copies to the Council. Councilmembers also received a copy of Minnesota Statute 43A regarding salary caps. Ms. Gohman provided guidance on how the Council might want to proceed with the interview process to interview Mr. Harmening for the City Manager position. Ms. Gohman offered that Mr. Harmening could be interviewed by department heads in two small groups. Ms. Gohman said she would provide written information from the departmental head interviews to the Council. Councilmember Santa said she likes the idea of dialogue between the department heads and the candidate but not an interview per se. Councilmember Sanger raised concern regarding employees interviewing a potential boss. Ms. Gohman responded that Mr. Harmening could outline his background and experiences for the department heads, and she would ask interview participants for concerns. Councilmember Brimeyer said such an interview process would allow people to be a part of the process. Mayor Jacobs commented that it would be a good team approach. Councilmember Basill said he likes the idea of having department heads interview Mr. Harmening. Ms. Gohman summarized that the interview process will include the department heads, and she will provide the Council with information from those interviews. Councilmember Brimeyer said that the interview questions should be tied to the profile. Councilmember Basill suggested there be no time limit set. Councilmember Sanger inquired about orchestrating the interview questions. Councilmember Brimeyer described his experience interviewing candidates for city manager positions, St. Louis Park City Council Meeting 030104 - 3d - Study Session Minutes of 12-8-04 Page 2 of 4 and he suggested asking questions regarding scenarios. Councilmember Brimeyer would like to have an evaluation form provided to the Councilmembers for use during the interview. It was noted that Councilmember-elect Phillip Finkelstein will attend the interview. It was decided that the City Council will interview Mr. Harmening on Monday, December 22, 2003 at 6:00 p.m. Ms. Gohman said notice will be published regarding Mr. Harmening’s interview. (Note: Items 3 and 4 were discussed prior to Item 2). 2. Indemnity Agreement with Oak Hill 3501 LLC/Anderson Builders relative to Purchase Contract for 3501 Louisiana Avenue Mr. Greg provided some background information on the connection between himself, ENSR, and the Reilly site and its history. Mr. Greg discussed the Reilly Tar Consent Decree. The minimum life of the Consent Decree is 30 years. Mr. Bubul reported that in the indemnification language, the City shall indemnify Anderson Builders, etc., up to the caps. Mr. Bubul stated that for the City to proceed or not to proceed, the liabilities are about the same amount—just different. In regard to the liability issue, Mr. Bubul contrasted the currently exposed contaminated dirt on the Reilly site versus a building being built and people occupying it. Councilmember Basill wants to be certain that Anderson Builders cannot come after the City; he wants Anderson Builders to be a true partner. Councilmember Sanger agrees with Councilmember Basill. Councilmember Sanger suggested that Anderson Builders pay a deductible for liability above two million dollars. Mr. Bubul said there is a single tort cap. Mr. Anderson said he does not have the money for the CERCLA cap, that insurance would be prohibitive. Mr. Anderson said he is getting information on environmental insurance, and he stated that he does not want to take on CERCLA liability. It was stated that the venting requirement would be honored as stated by the MPCA. Councilmember Omodt does not favor going forward with this indemnity agreement. After tonight’s discussion Councilmembers Basill and Sanger, and Mayor Jacobs are more comfortable with the liability issue. Council will move forward with this item. Mr. Harmening stated that this item must appear on the agenda for December 15, 2003. 3. Stonebridge Development—Preliminary Application for Tax Increment Financing Assistance for a proposed Senior Cooperative Housing redevelopment project on the former Talmud Torah school property Mr. Hunt said this is a preliminary discussion to determine if Council would like to move forward with this proposal. Mr. Hunt said this project would require a Comprehensive Plan amendment. The Redeveloper has provided a preliminary sources and use estimate for the project in its Preliminary TIF St. Louis Park City Council Meeting 030104 - 3d - Study Session Minutes of 12-8-04 Page 3 of 4 Application, and the total dollar amount is $23,215,050, to be paid in nine years. Mr. Hunt said the EDA’s financial consultant, Ehlers & Associates, reviewed the Redeveloper’s pro forma and did not raise any concerns, i.e., they see no serious issues as the project is stated. Councilmember Santa commented that the traffic light at 33rd and Texas Avenue is problematic, and she has traffic concerns regarding pedestrians walking on sidewalks. In regard to Texas and Virginia Avenues, safety is a huge concern. Councilmember Santa inquired about how to deal with open space and the Water District. Mr. Hunt said the Redeveloper has yet to contact the Water District. A Stonebridge representative said a traffic study could be conducted. Mayor Jacobs said neighborhood meetings would be required; at this time, it appears the project would meet some of the City’s housing goals, i.e., the option for seniors to purchase affordable senior housing, and single-family, senior-owned homes may become available for resale to younger families. Councilmember Sanger asked if all units in the proposed project are subject to being designated as a limited liability coop, and the response from Stonebridge was yes. Councilmember Sanger asked: What is the incentive for property owners to maintain their units? Councilmember Velick commented that there are high monthly maintenance fees. Mayor Jacobs asked if any studies have been done on this type of project. A Stonebridge representative said there are only two such limited equity cooperative entities in the Twin Cities. When Councilmember Sanger asked where goes the inherent value, the response was that the co-op owns it. Councilmember Basill is concerned about risk in the event that the co-op should be unsuccessful; he asked what the developer’s track record is in particular and limited equity co-ops in general. The Council would like to have statistics on this type of project and the history of successes and failures of a limited equity co-op. Councilmember Sanger inquired about those property owners who may violate the co-op’s by-laws. Councilmember Velick said the concept is broad and more information is needed. Councilmember Omodt asked: why TIF? Councilmember Basill commented that rental units could be built without TIF. Stonebridge representatives will gather and present the information Council has requested. 4. Usable Open Space Requirements St. Louis Park City Council Meeting 030104 - 3d - Study Session Minutes of 12-8-04 Page 4 of 4 Ms. Erickson discussed usable open space requirements and the Planning Commission’s recommendations regarding text changes to the Zoning Code that would result in more consistent standards. She said the Planning Commission recommended eliminating the definition for usable open space and replace it with a definition for designed outdoor recreational area (DORA). Ms. Jeremiah added that Staff could include an accessibility requirement. Councilmember Sanger said the City must have clear definitions for developers. Ms. Jeremiah said Staff would like to address quality and quantity. Councilmember Sanger expressed concern regarding the reduction in the R-1, single-family standard from 600 to 400 square feet. Mayor Jacobs wants people to have flexibility. Ms. Jeremiah said Staff will be collecting information from Points of Sale, and additional information from DORA (designed outdoor recreational area). Council asked Staff to return with that information. 5. Adjournment The meeting adjourned at 10:40 p.m. ________________________________ _________________________________ City Clerk Mayor St. Louis Park City Council Meeting Item: 030104 - 4a - Excel & Grand Public Imp Page 1 of 8 4a. Motion to accept a portion of the Excelsior and Grand Phase One Public Improvements Background: TOLD, Inc., the developer of the Excelsior & Grand site, has requested that the City formally accept the utility infrastructure and street improvements constructed in conjunction with the development. These improvements were constructed by the developer as part of the Phase One Initial Public Improvements and become City property upon completion of the work and acceptance by the City. A warranty period of one year for street improvements and two years for the utility infrastructure is stipulated in the Amended and Restated Planning Development Contract between Meridian Properties Real Estate Development, LLC and the City dated October 15, 2003. The major contractors performing work on this project were: Utilities: Imperial Developers, Inc. Grading/Streets: DMJ Asphalt, Inc. The utilities and the first lift of bituminous were constructed in 2002. The final lift of bituminous was constructed in 2003 on most streets. The street & utility construction for the project was inspected and tested by the engineering firm of MFRA, Inc. Analysis: Most of the Initial Public Improvements have been substantially completed, therefore TOLD is requesting approval of the following improvements in order to begin the warranty period: Street Improvements § Park Commons Drive from Monterey Drive to Princeton Lane § Grand Way from Excelsior Boulevard to Wolfe Parkway § Princeton Lane from Excelsior Boulevard to Park Commons Drive § Meridian Lane from Excelsior Boulevard to Park Commons Drive Streetscape Improvements § South side of Park Commons Drive from Monterey Drive to Princeton Lane § Both sides of Grand Way from Excelsior Boulevard to Park Commons Drive § East side of Princeton Lane from Excelsior Boulevard to Park Commons Drive § West side of Meridian Lane from Excelsior Boulevard to Park Commons Drive § North side of Excelsior Boulevard from Meridian Lane to Princeton Lane Utility Infrastructure-located below or adjacent to the following § Park Commons Drive from Monterey Drive to Princeton Lane § Grand Way from Excelsior Boulevard to Wolfe Parkway § Princeton Lane from Excelsior Boulevard to Park Commons Drive § Meridian Lane from Excelsior Boulevard to Park Commons Drive § Excelsior Boulevard from Meridian Lane to Princeton Lane St. Louis Park City Council Meeting Item: 030104 - 4a - Excel & Grand Public Imp Page 2 of 8 These improvements will be accepted subject to completion of the following items by June 1, 2004: • All items on the attached summary of Public Works Issues (dated 12/18/03, updated 1/9/04) • All infrastructure-related items identified on the Phase I Walk-through Comments (Exhibit F of the Planning Contract) And, completion of the following items by March 31, 2004: § Written notice from the Developer’s engineer certifying that the construction work meets the required City standards § Written notice from the Developer’s surveyor certifying installation of all iron monuments at lot corners § Final set of electronic and mylar “as constructed” plans, prepared in accordance with City standards, including copies of all necessary reports and tests § Submittal of maintenance bonds in the amount of twenty-five percent (25%) of final certified construction costs to secure both warranties. These bonds will be used to pay for warranty work which the Developer fails to complete upon request of the City. Since the majority of work was completed last fall, staff is amenable to starting the warranty period as of November 1, 2003. The City will also retain $97,000 of the Developer reimbursement amount to pay for those Phase One Initial Public Improvements that have not yet been completed. The City’s acceptance of the Public Improvements and initiation of the warranty periods will be voided if the Developer fails to provide the requested items or complete outstanding issues by the dates listed above. The Public Works Department recommends approval of the partial acceptance of the public utility and street improvements for this development area subject to the conditions outlined above. Attachments: Public Works Issues list Phase I Walk-through Comments Prepared by: Maria Hagen, City Engineer Reviewed by: Michael P. Rardin, Director of Public Works Approved by: Tom Harmening, City Manager St. Louis Park City Council Meeting Item: 030104 - 4a - Excel & Grand Public Imp Page 3 of 8 Issue Status/Information Drainage problem at entrance to west parking ramp City has information and opinion from Streetscape consultant on this issue; City has offered to split cost 50/50 with developer * Work to be done in Spring by BorSon Drainage problem at corner of Meridian Lane/Excelsior Blvd. City has information and opinion from Streetscape consultant on this issue; City has offered to split cost 50/50 with developer * Work to be done in Spring by BorSon Incorrect construction/access to oil separators Oil separator manholes were constructed without adequate access for maintenance; City agreed to furnish larger access manhole covers and rings; Imperial/BorSon agreed to provide labor & restoration * Work complete Storm sewer manhole near intersection of Park Commons Drive & Princeton Lane does not sit over the sewer line Imperial agreed to “spin” the top section of the manhole * Work to be done in Spring by Imperial/ BorSon Catch basin at SW corner of Park Commons Drive & Princeton Lane sits into the intersection; kinked curb City feels the catch basin placement restricts an already narrow intersection; feels relocation or removal are options * Relocate & correction to be done in Spring by BorSon Reimbursement for repair of City irrigation system (near KinderCare) ($2,007.80) City believes line was damaged by BorSon or Borson sub-contractor – repair was done by City contractor * TOLD has bill and is handling reimbursement Painted valet parking areas Plan for painting of valet parking areas was not approved by the City; lack of accompanying signage makes areas non-enforceable * Paint has been removed Painting of curbs in parking ramps Recommended by City staff to promote proper driving and awareness of obstacles * Work complete Replacement of sidewalk behind Bally’s; completion of missing segment from existing walk to corner of Princeton Lane Plan was to replace sidewalk with 6’-wide walk * Work not complete – concrete work to be done in the Spring Removal of overhead light on Park Commons Drive behind Bally’s Light was not called out for removal in plans; BorSon cut wires to light * Work is not complete-do in Spring St. Louis Park City Council Meeting Item: 030104 - 4a - Excel & Grand Public Imp Page 4 of 8 Issue Status/Information Install silt fence at down grade of construction field office site Steep hill; need silt fence to prevent runoff into catch basins * Work partially complete – ok for now-do in Spring Repair of light poles/fixtures (2) on Excelsior Blvd. which have been damaged * Work is not complete-do in Spring Striping on south-bound Grand Way at Excelsior Blvd. TOLD requested striping to delineate lanes & turning movements; City is investigating * Work to be done in Spring by TOLD Request for installation of Stop signs on Park Commons Drive at Meridian Lane City is investigating * Request denied Parking signage on Grand Way City needs to verify locations, type & installation in accordance with resolution * Inspected locations, signage not complete Wrong-way parking on Meridian Lane BT to request Police Dept. to issue warnings; TOLD to inform management company to notify tenants * Complete – Parking better Bus Stop sign installation Carlton had agreed to do this – verify * Work was done by TOLD, but sign installed too low Submittal of as-built drawings · Include: detail for StormCeptor, pavement section & note year contructed on plans · Include developer-owned conduit in right-of-way MFRA has prepared initial set; City has sent back comments * City sent comments to MFRA 1/9/04; need to receive electronic & mylar final set Street sign installation on Grand Way was drilled into light poles rather then using banding * Work is not complete Slope on sidewalk at stairwell adjacent to building “A” * Work is not complete-Inspections Dept. issue Electrical control cabinet repair * Waiting on parts to complete, lights are working at present Utility pad on Monterey Ave wall repair and landscaping replacement * Work is not complete-do in Spring Snow storage at Monterey Ave & Excelsior Blvd * BT talked to BorSon (Wally), he will take care of lowering and or removing snow Remove temp. power pole at Monterey Ave & Excelsior Blvd. * Work is not complete Repair and/or replace street surfaces and curb & gutter due to construction hauling * City will review in Spring for damage due to hauling from Phase II St. Louis Park City Council Meeting Item: 030104 - 4a - Excel & Grand Public Imp Page 5 of 8 Issue Status/Information Damaged Stop sign at Meridian Lane and Park Commons Drive * Work is not complete Raise 3 valves located under brick sidewalk * City Utilities to locate; work to be done in Spring by BorSon Clean out 6 valves * City Utilities to locate; work to be done in Spring by BorSon Submittal of as-built drawings for street lighting, decorative lighting and electrical cabinets * Not yet received Secure electrical cabinet to concrete pad *Work not yet complete Replace burnt out street lights throughout project area * Complete ASAP Submittal of necessary tests, reports shop drawings, etc. as outlined in letter dated 7/10/03 (attached) * Have not yet received full sets of bituminous sampling & tests, concrete curb & gutter and air content tests, agg. base compaction tests, videotape of televising of san. sSewer, etc. Wolfe Parkway: Repair pavement and perform subgrade correction as needed; install final bituminous course; replace broken & cracked sections of curb & gutter * Work to be completed in 2004 as agreed upon between TOLD and City Curb drop needs to be installed on Wolfe Parkway N.E. parking bay adjacent to new construction for City park trail (Phase II) * Work to be completed in the Spring in conjunction with Phase II/Wolfe Parkway work Removal of abandoned water and sanitary sewer services on Wolfe Parkway (Phase II) * Two removed to-date St. Louis Park City Council Meeting Item: 030104 - 4a - Excel & Grand Public Imp Page 6 of 8 Phase I Walk-through Comments (Exhibit F of the Planning Contract) Excelsior & Grand Phase I Exterior Walk Through 7/31/03 Revised 8/8/03 Revised 10/9/03 Revised 11/6/03 A. General: 1. All exterior vents (fireplace exhausts, dryers, etc.)and rooftop equipment visible from off- site must be painted to match the adjacent exterior or approved alternate. 2. All temporary and permanent signs must have permits and must comply with current ordinances. 3. Site maps need to be placed in "kiosks" by leasing office and at base of parking ramp stairwells. 4. Electrical boxes for tree lighting must be moved up and away from all tree trunks. 5. Concern with premature aging of some sidewalk pavers (exposure of aggregate already) possibly caused by acid washing buildings. 6. Satellite dishes on roof need to be installed per Building Code and screened per Zoning Code (relocated to area where not visible from pedestrian level). 7. Need valet parking plan ASAP. 8. Painting of curbs or approved alternate and installation of public parking directional and regulatory signs in parking ramps needs to be completed by October 31, 2003 and November 15, 2003, respectively. Painting has been rescheduled for week of 11/17 – weather permitting. 9. Inoperable vehicles cannot be stored in above-ground parking ramps at any time. B. West Side of Grand Way from Excelsior to Park Commons Drive: 1. TOLD needs to submit a sign permit application for changing one kiosk to leasing office signage. 2. Panera needs to submit sign permit application for umbrella signage. 3. Small signs on tree protectors need to be approved/installed. C. Park Commons Drive from Grand Way to Princeton Lane: 1. Hackberry trees by Panera need to be evaluated by landscape architect or arborist and replaced as necessary. 2. Transit sign needs to be installed on Building C by October 24, 2003. 3. Final loading zone and police parking design needs to be accepted by City; loading zone sign needs to be replaced 4. Newspaper boxes by ramp need to be moved to corrals at south side of ramp. 5. Rails on Bldg A stairs need to be completed. 6. Utility issues on Park Commons Drive need to be resolved and changes. St. Louis Park City Council Meeting Item: 030104 - 4a - Excel & Grand Public Imp Page 7 of 8 7. Handicap accessible curb depression at corner of Park Commons Drive and Princeton Lane for relocated trail/sidewalk crossing and completion of new sidewalk needs to be coordinated with Public Works. 8. Need to complete landscaping by utility boxes near Wolfe Lake Condos parking lot. D. Princeton Lane from Park Commons Drive to Excelsior Blvd.: 1. Fireplace vent needs to be protected because it is within reach of pedestrians and poses a safety concern due to hot surface and potential for children to bang their heads on it. E. Excelsior Blvd. from Princeton Lane to Grand Way: 1. Kindercare screening of kitchen area with mini-blinds needs to be installed. 2. Grade on Excelsior Blvd. sidewalk needs to be corrected by corridor exit and by Qdoba. 3. Need to finish handicap door corrections just east of Ramp B. F. Town Green South and North of Park Commons Drive: 1. Sprinkler head on top of fountain needs to be replaced with a more aesthetic, permanent solution. 2. Plantings around sundial need to be improved; possible signage to explain how it works and that it doesn't reflect daylight savings time will be further considered. 3. Two Lindens just south of traffic circle are too close to light poles and branches are scratching paint- Landscape architect needs to evaluate moving or pruning. Will prune to keep off poles by October 31, 2003 and as needed as trees mature. 4. Some of the Dogwoods just south of the traffic circle need to be replaced. 5. One Birch on north town green is questionable - should be evaluated by landscape architect/arborist for pruning or replacement. G. East Side of Grand Way from Park Commons Drive to Excelsior Blvd.: 1. Honeylocusts in front of McCoys and Mojitos need to be evaluated by landscape architect/arborist. H. Excelsior Blvd. at Town Green and east to Meridian Lane: 1. Two granite bollards are broken and need to be replaced/reinstalled- one in median south of town green and one closest to corner by Mojitos. 2. Cracks in Excelsior Blvd. in front of Mojitos and Snyders need to be repaired per Public Works specifications. 3. Three pavers in front of Mojitos and pavers around MNDOTs electrical manhole further east need to be leveled. 4. Tree grate by parking ramp entrance needs to be leveled and corner sealed down. I. Meridian Lane from Excelsior Blvd to Park Commons Drive: St. Louis Park City Council Meeting Item: 030104 - 4a - Excel & Grand Public Imp Page 8 of 8 1. Phase E silt fence needs to be installed and property needs to be cleaned up. Complete subject to acceptance by City. Temporary fence and construction parking lot going in early October, 2003 in accordance with Official Exhibit 2.NN and the terms of the Planning Contract. 2. Phase E interim landscape plan needs to be submitted approved/installed. 3. Solution for correcting clearance between sloped sidewalk and light pole needs to be submitted/approved/implemented. Concrete corrected subject to acceptance by City. Rail needs to be corrected/relocated by December 1, 2003 in accordance with ESG plan dated 9/2/03). J. Park Commons Drive from Meridian Lane to Grand Way: 1. Pavers need to be leveled by third entry stoop west of Meridian. 2. Hackberry trees need to be evaluated by landscape architect/arborist. 3. Solution to meet screening requirement for truck loading/service alley or application for variance or other means to bring into compliance must be submitted to the City. K. Other outstanding Phase 1 issues: 1. Remove paint from public right-of-way at valet area and install signage that has been approved by City by October 31, 2003. 2. Complete parking ramp signage as approved by Zoning and Public Works by November 15, 2003. 3. Complete elevation corrections along north side of Excelsior Blvd. near Ramp B entrance, corridor exit, and intersection with Median Lane. Awaiting construction drawing from SRF Consulting; implement as soon as feasible thereafter. Contractor to replace manholes for oil separators week of 11/10. Elevations are acceptable to all parties and will not be revised. 4. Submit trash handling plan for Phase I West and Phase II or apply for variance or other means of complying. 5. Paint or mark curbs as approved by the City on all levels of parking ramps B and E by October 31, 2003. Delayed due to weather. Scheduled for week of 11/10. 6. Submit a plan for annual flowers to replace approved planters for Phase I and II and implement for Phase I. St. Louis Park City Council Item: 030104 - 4b - Encroachment Agmt 3501 Louisiana Page 1 of 9 4b Motion to authorize the Mayor and City Manager to execute an Encroachment Agreement with Oak Hill 3501, LLC and Diercks Properties, LLC for use of City street right-of-way for private driveway purposes Background: The property at 3501 Louisiana Avenue is being sold by the City’s Economic Development Authority (EDA) to a developer, Oak Hill 3501, LLC. Due to the property’s size and configuration, the development plans show access to the east end of the property over the City’s right-of-way. A driveway, serving the property at 3340 Republic Avenue, is currently in place, within this right-of-way. Oak Hill 3501, LLC has requested that an encroachment be granted to both properties to allow access from Walker Street. Analysis: A common private driveway, serving both properties, would be constructed by Oak Hill 3501 within the City’s right-of-way. All costs of this construction and any future maintenance would be borne by the two adjacent properties. The City has reserved the right to terminate this agreement upon sixty (60) days notice to the affected parties that the driveway will be replaced by a public street. At that time, the adjacent property owners would have driveway access from the new City street. City staff has reviewed this request and has found no conflicts with utilities or other public facilities. The City Attorney, Tom Scott, has also reviewed the agreement and finds it acceptable. Attachment: Agreement Map (Supplement) Prepared by: Maria A. Hagen, City Engineer Reviewed by: Michael P. Rardin, Director of Public Works Approved by: Thomas K. Harmening, City Manager St. Louis Park City Council Item: 030104 - 4b - Encroachment Agmt 3501 Louisiana Page 2 of 9 (reserved for recording information) ENCROACHMENT AGREEMENT AGREEMENT made this _______ day of _____________, 2004, by and between the CITY OF ST. LOUIS PARK, a Minnesota municipal corporation ("City") and OAK HILL 3501, LLC, a Minnesota limited liability company and DIERCKS PROPERTIES, LLC, a Minnesota limited liability company (hereinafter collectively referred to as “Owners”). RECITALS • Oak Hill is the owner of the property (the “Oak Hill Property”) legally described as follows: That part of Lot 1, Block 7, OAK PARK VILLAGE, according to the record plat thereof, Hennepin County, Minnesota, lying southerly of a line drawn from the angle point in the east line of said Lot 7 distant 188.32 feet south of the northeast corner of said Lot 7, to a point on the west line of said Lot 7 distant 185.20 feet south of the northwest corner of said Lot 7; And, That part of the southwesterly one-half of the vacated alley adjacent to and northeasterly of said Lot 1, Block 7, which lies between the northeasterly St. Louis Park City Council Item: 030104 - 4b - Encroachment Agmt 3501 Louisiana Page 3 of 9 extension of the southeasterly line of said Lot 1 and a line drawn between the angle points in said alley. • Diercks is the owner of the property (the “Diercks Property”) legally described as follows: Lots 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17 and 18, Block 185, “Rearrangement of St. Louis Park,” together with all of vacated alley in said Block 185. Except all that part of Lots 11 through 18, inclusive, Block 185, “Rearrangement of St. Louis Park,” according to the plat thereof, and of vacated alley which accrued to said Lot 11 by the reason of the vacation thereof, lying Southwesterly of a line described as follows: Commencing at the intersection of the Southwesterly extension of the Northwesterly property line of Lot 18 with the Westerly extension of the Southerly property line of Lot 18; thence North 85°41’49” East assumed bearing, a distance of 202.02 feet along the South property line of the above mentioned lots and the extension thereof, to the point of beginning of the line to be described, thence Northwesterly along a tangential curve concave to the Northeast having a radius of 310.0 feet, central angle 38 degrees 46 minutes 02 seconds, a distance of 200.00 feet and there terminating. • The Oak Hill Property and the Diercks Property are hereinafter collectively called the “Property.” • The Owners desire to cause a driveway and other curb and gutter improvements to be constructed on a portion of an unopened City right-of-way (“Driveway Area”) legally described on Exhibit A hereto. NOW, THEREFORE, the parties agree as follows: 1. ENCROACHMENT AUTHORIZATION. The City hereby grants to Owners the permanent right (except as provided in Paragraphs 4 and 5) to encroach on the Driveway Area for the construction, maintenance, use, operation, repair, and restoration of a common private driveway servicing the Property for the benefit of the Property and the owners of the Property and their successors and assigns. Such construction shall occur in accordance with plans and specifications St. Louis Park City Council Item: 030104 - 4b - Encroachment Agmt 3501 Louisiana Page 4 of 9 attached hereto as Exhibit B or as otherwise approved by the City Engineer, which approval shall not unreasonably be withheld. 2. MAINTENANCE OF DRIVEWAY. Owners shall be responsible for all costs of to construction, reconstruction, maintenance, and repair of the driveway, subject to (as between Owners) allocation of costs in accordance with the terms of that certain Driveway Construction and Maintenance Agreement dated ___________, 2004. 3. HOLD HARMLESS AND INDEMNITY. In consideration of being allowed to encroach on the City's right-of-way in the Driveway Area, each of the Owners respectively, for themselves, their respective successors, heirs, and assigns, hereby agrees to indemnify and hold the City harmless from all costs and expenses, claims and liability, including attorney's fees, relating to or arising out of this grant to Owners of permission to encroach on the City's right-of-way for the construction, reconstruction, maintenance, and repair of the driveway to the extent caused by such respective Owner and its respective successors, heirs, and assigns. Owners further agree to indemnify and hold the City harmless from any damage to the property and the driveway caused in whole or in party by the encroachment into the City’s right-of-way and the City’s use of the right- of-way except for the right to construct and maintain the driveway improvements. The City does not warrant or in any way guarantee Owners’ continuing right to utilize the Driveway Area against claims by third parties; provided, however, City agrees to refrain from granting rights to third parties hereafter which would materially interfere with the rights granted to Owners herein. 4. TERMINATION OF AGREEMENT. The City may, at its sole discretion, terminate this Agreement at any time by giving the then Owners of the Property sixty (60) days written notice that the driveway will be replaced as soon as reasonably practicable by a public street St. Louis Park City Council Item: 030104 - 4b - Encroachment Agmt 3501 Louisiana Page 5 of 9 to which Owners have access in the same or substantially the same location as shown on the drawing attached hereto and incorporated herein as Exhibit C. After such notice and upon request by the City, Owners must remove the driveway at their expense to accommodate the public street construction. Owners will have access to the new public street in the same or substantially the same location as the access shown on Exhibit C. 5. LIMITATION OF OWNERS’ RIGHTS. Owners’ rights under this agreement: (a) shall not be considered in determining benefit pursuant to Minn. Stat. Chapter 429 or any successor statute if the Driveway Area is replaced by a public street and such access is so maintained; (b) shall be subject to the City’s right to install a median in Walker Street limiting left turn access to and from the Driveway Area without paying compensation to Owners; (c) shall be subject to the City, or any other entity entitled by law to utilize public right of way, to install and maintain utilities, telecommunication or other facilities and restore the driveway to its originally improved condition which may temporarily disrupt or temporarily cause damage to Owners’ driveway improvements; and (d) other than the Owners’ right to have access to a public street for the current property uses pursuant to Paragraph 4 herein, the property shall be subject to all provisions of the St. Louis Park Ordinance Code, including those provisions regulating non- conformities. 6. RECORDING. This Agreement shall be recorded against the title to the subject property and shall run with the land. CITY OF ST. LOUIS PARK BY: _____________________________________ (SEAL) Jeff Jacobs, Mayor St. Louis Park City Council Item: 030104 - 4b - Encroachment Agmt 3501 Louisiana Page 6 of 9 AND ____________________________________ Thomas K. Harmening, City Manager OWNERS: OAK HILL 3501, LLC BY: Its DIERCKS PROPERTIES, LLC BY: Its St. Louis Park City Council Item: 030104 - 4b - Encroachment Agmt 3501 Louisiana Page 7 of 9 STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _______ day of ______________, 2004, by Jeff Jacobs and by Thomas K. Harmening, respectively the Mayor and City Manager of the City of St. Louis Park, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. ____________________________________ NOTARY PUBLIC STATE OF MINNESOTA ) ) ss. COUNTY OF _________ ) The foregoing instrument was acknowledged before me this _______ day of ___________________, 2004, by ________________________________ the _______________ of Oak Hill 3501, LLC, a Minnesota limited liability company, on behalf of said company. ____________________________________ NOTARY PUBLIC STATE OF MINNESOTA ) ) ss. COUNTY OF _________ ) The foregoing instrument was acknowledged before me this _______ day of ___________________, 2004, by ________________________________ the ______________ of Diercks Properties, LLC, a Minnesota limited liability company, on behalf of said company. ____________________________________ NOTARY PUBLIC THIS INSTRUMENT DRAFTED BY: CAMPBELL KNUTSON, P.A. Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve St. Louis Park City Council Item: 030104 - 4b - Encroachment Agmt 3501 Louisiana Page 8 of 9 Eagan, Minnesota 55121 TMS/cjh St. Louis Park City Council Item: 030104 - 4b - Encroachment Agmt 3501 Louisiana Page 9 of 9 CONSENT The undersigned, owner of that certain ______________________________________ executed by Diercks Properties, LLC., a Minnesota limited liability company, dated __________________, as Mortgagor, in favor of __________________________, as Mortgagee, and filed for record in the office of the _____________________ in and for Hennepin County, Minnesota on _________________, as Document No. ________________ does hereby for itself, its successors and assigns, consent to and subordinate its interest to the foregoing Encroachment Agreement. Dated: _______________, 2004 By Its STATE OF ___________ ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this _____ day of ___________, 2004, by _____________________, the __________________ of _______________________ ______________, a _________________________________________, on behalf of said ____________________________. Notary Public St. Louis Park City Council Meeting 030104 - 4c - Premises Permit Renewal Hockey Booster Page 1 of 2 4c. Motion to approve Resolution authorizing Renewal of Gambling Premises Permit for St. Louis Park Hockey Boosters Association operating at Bunny’s Bar and Grill, 5916 Excelsior Blvd. Background: St. Louis Park Hockey Boosters Association has submitted a renewal application for a Gambling Premises Permit at Bunny’s Bar & Grill located at 5916 Excelsior Blvd. in St. Louis Park. The Association donates up to $150,000 annually to the St. Louis Park Hockey Association and other St. Louis Park sports. The premises permit duration is May 1, 2004 – April 30, 2006. The City Council must act to approve or deny the renewal before it is submitted to the State Gambling Control Board. A copy of the resolution passed by the Council will be submitted to the State. All current requirements for issuance of the license have been met. The Police Department has conducted a background investigation and no records or warrants were discovered by using conventional police methods of investigation. Attachments: Resolution Prepared by: Nancy Stroth, Deputy City Clerk Approved by: Tom Harmening, City Manager St. Louis Park City Council Meeting 030104 - 4c - Premises Permit Renewal Hockey Booster Page 2 of 2 RESOLUTION NO. 04-029 A RESOLUTION OF THE ST. LOUIS PARK CITY COUNCIL APPROVING ISSUANCE OF A PREMISES PERMIT FOR LAWFUL GAMBLING FOR ST. LOUIS PARK HOCKEY BOOSTERS ASSOCIATION AT BUNNY’S BAR AND GRILL, 5916 EXCELSIOR BOULEVARD, ST. LOUIS PARK PERMIT DURATION MAY 1, 2004 –APRIL 30, 2006 WHEREAS, Minnesota Statutes Chapter 349 and St. Louis Park Ordinance Section 15, provide for lawful gambling licensing by the State Gambling Control Board; and WHEREAS, a licensed organization may not conduct lawful gambling at any site unless it has first obtained from the Board a premise permit for the site; and WHEREAS, the Board may not issue or renew a premises permit unless the organization submits a resolution from the City Council approving the premises permit; therefore, BE IT RESOLVED by the City of St. Louis Park City Council that the applicant listed below meets the criteria necessary to receive a premises permit, and the application is hereby approved ST. LOUIS PARK HOCKEY BOOSTERS ASSOCIATION AT BUNNY’S BAR AND GRILL 5916 EXCELSIOR BLVD ST. LOUIS PARK, MN 55426 Reviewed for Administration: Adopted by the City Council March 1, 2004 City Manager Mayor Attest: City Clerk St. Louis Park City Council Meeting 030104 - 4d - Lion's Club Temporary Signage Page 1 of 2 4d. Motion to adopt the attached Resolution to approve St. Louis Park Lions Club’s application for the placement of 14 temporary signs in the public right-of-way. Background: On February 9, 2004, the City received an application from the St. Louis Park Lions Club for 14 signs to be temporarily placed within the public right-of-way. Section 36-362(e)(2) of the Zoning Code states that prohibited signs include, “Signs on or over the public right-of-way unless the City Council grants permission for a temporary sign on or over the public right-of-way for a period not to exceed ten days.” Proposal: The Lions Club is a non-profit community based organization that provides services and resources to the people of St. Louis Park. The requested signs advertise the Lions Club’s 47th Annual Pancake and Sausage Breakfast to be held on Sunday, April 4. This activity is a fund raiser intended to raise revenue to fund those services and resources provided to the residents of St. Louis Park. The signs will be displayed beginning March 27, 2004 and will be removed on April 4, 2004. The following signs are proposed to be placed within the right-of-way: # Sign Style Size Location 10 Two-sided sawhorse/sandwich board type 3’ wide x 4’ high A, B, D, F, G, H 3 Two-sided sawhorse/sandwich board type 2’ wide x 4’ high C and E 1 Sign on wheeled trailer 6’ wide x 4’ high I If approved, all signs will be placed within the public right-of-way at the locations shown on the attached sign map. Staff will verify placement to avoid visibility-related issues. Recommendation: It is recommended that the City Council adopt the attached Resolution approving the St. Louis Park Lions Club’s request for the placement of 14 temporary signs in the public right-of-ways as outlined within the attached Resolution. Attachments: Resolution Letter from Lions Club dated February 9, 2004 Sign Plan Prepared by: Gary Morrison, Assistant Zoning Administrator Approved by: Tom Harmening, City Manager St. Louis Park City Council Meeting 030104 - 4d - Lion's Club Temporary Signage Page 2 of 2 RESOLUTION NO. 04-030 RESOLUTION APPROVING THE ST. LOUIS PARK LIONS CLUB'S APPLICATION FOR THE PLACEMENT OF 14 TEMPORARY SIGNS WITHIN THE PUBLIC RIGHT-OF-WAY WHEREAS, The St. Louis Park Lions Club made application for the placement of 14 temporary signs within the public right-of-way; and WHEREAS, pursuant to Section 36-362(e)(2) of the St. Louis Park Zoning Ordinance, the City Council may approve the placement of temporary signs within the public right-of-way for a period not to exceed 10 days; NOW, THEREFORE, BE IT RESOLVED by the Cit y Council of the City of St. Louis Park, Minnesota, that the City Council approves the St. Louis Park Lions Club's application for the placement of 14 temporary signs within the public right-of-way beginning March 27, 2004, and to be removed immediately following the conclusion of the event on April 4, 2004. BE IT FURTHER RESOLVED that the size and placement of the temporary signs are approved as follows: 1. Two 3-foot wide by 4-foot high signs at the intersection of Louisiana Blvd & 14th St W. 2. One 3-foot wide by 4-foot high sign on the south side of Cedar Lake Rd just west of Flag Ave. 3. One 2-foot wide by 4-foot high sign on the east side of Texas Ave at the Westwood Junior High School. 4. One 3-foot wide by 4-foot high sign on the south side of Cedar Lake Rd at Zarthan Ave. 5. Two 2-foot wide by 4-foot high signs at the intersection of Minnetonka Blvd and Louisiana Ave. 6. Two 3-foot wide by 4-foot high signs at the intersection of Aquila Ave and Hwy #7. 7. Two 3-foot wide by 4-foot high signs at the intersection of Beltline Blvd and County Rd #25. 8. Two 3-foot wide by 4-foot high signs at the intersection of Excelsior Blvd and Louisiana Ave. 9 One 6-foot wide by 4-foot high sign at the southeast corner of Oregon Ave & Hwy #7. Reviewed for Administration: Adopted by the City Council March 1, 2004 City Manager Mayor Attest: City Clerk St. Louis Park City Council Meeting 030104 - 4e - Shelard Homes CUP Extension Page 1 of 1 4e. Motion to approve a 6 month extension of Shelard Homes (Lurie Apartments) Conditional Use Permit until September 3, 2004. Case No. 02-40 CUP (Approved September 3, 2002) Background: On September 3, 2002, the City Council approved a Conditional Use Permit for Lurie Apartments, which has since been renamed to Shelard Homes, to construct a mixed use residential and commercial building on the northeast corner of Ford Road and Wayzata Boulevard. An athletic club currently exists on site. The Conditional Use Permit is for a 5 story building, with approximately 5,800 square feet of office, 2,100 square feet of residential support area, and 33 parking stalls on the first floor, and four floors of apartment above. Sixty five (65) residential units were approved. A total of 131 parking stalls were approved to be located on an exterior lot, an interior lot on the first level, and an underground garage. The exterior parking lot will be located on the east side of the building, accessed by a garage entry off of Wayzata Boulevard that goes through the building. The underground residential parking was approved with access on the west side of the building via a driveway from Ford Road. The Ordinance states that conditional use permits be revoked and canceled after one year from the date of adoption of the resolution if no construction has occurred, unless an extension is approved by the City Council. On July 21, 2003, the City Council approved a 6 month extension to allow the applicant time to obtain HUD’s approval and resolve financing. Since that time the applicant has been working with the City on some potential changes. On February 24, 2004, Shelard Homes (Lurie Apartments) submitted a request for an extension of their Conditional Use Permit. They are still awaiting financial approval and have indicated there has been a small change in plans. Staff believes due to the current market for apartments the developer may be considering converting the units to condominiums (Provided the number of units does not change this would not affect their CUP approvals). As a result a 6 month extension is being requested. Recommendation: Staff recommends extending the Conditional Use Permit until September 3, 2004 to allow Shelard Homes (Lurie Apartments) to obtain HUD financing and consider plan changes. . Attachments: Letter from Shelard Homes (Supplement) Prepared by: Julie Grove, Associate Planner Approved by: Tom Harmening, City Manager St. Louis Park City Council Meeting 030104 - 4f - CIP Reimbursement Resolution Page 1 of 4 4f. Motion to adopt a resolution requesting reimbursement for Capital Improvement Projects from the anticipated 2006 General Obligation Bond issue Background: The 2004-2008 Capital Improvement Program was approved by the City Council at their December 15, 2003 meeting. The CIP is used by the City to identify and implement various improvements throughout the community. Several projects initiated by the Public Works Department require the use of General Obligation debt for partial or full financing. In order to be reimbursed from a future General Obligation Bond issuance for expenses related to these projects, a reimbursement resolution is necessary. Analysis: Based on previous discussions by the City Council, it was determined that the soonest additional debt should be issued is 2006. The estimated bond issue is $2,500,000, however this amount may change as the City continues to refine the Capital Improvement Program. Funding for these projects will be achieved in the interim by advancing monies from the Permanent Improvement Revolving Fund at the inception of the project and returned to the Permanent Improvement Revolving Fund at the time of bond issuance in 2006. At this time, the following capital improvement projects are anticipated to be completed with the issuance of a General Obligation Bond in 2006: Project Project Number Bond Cost Total Project Cost Crossings Improvement Projects 19990900 $43,018 $146,831 Lamplighter Pond - Dredging & Modifications - Area #4 20001800 $75,000 $1,569,902 Bikeways Improvement Project 20011000 $287,475 $473,919 Alley Project Paving - Edgebrook Drive 20031500 $37,423 $56,824 Sidewalk Improvement Project - Pedestrian Curb Ramps 20040100 $120,350 $120,350 Sidewalk Improvement Project - Other Segments 20040200 $294,877 $501,927 Trail Improvement Project - Other Segments 20040300 $291,240 $528,444 Street Project - Closures at RR Crossings 20041200 $108,000 $108,000 Street Project - TH 100 Noise Wall (West) 20050100 $130,075 $200,475 Street Improvement Project - W 44th Street 20050500 $100,000 $100,000 Total $1,487,458 $3,806,672 St. Louis Park City Council Meeting 030104 - 4f - CIP Reimbursement Resolution Page 2 of 4 Recommendation: Motion to adopt the attached resolution requesting reimbursement for the above-listed Capital Improvement projects from the anticipated 2006 General Obligation Bond issue. Attachment: Resolution Prepared By: Jean McGann, Director of Finance Approved By: Tom Harmening, City Manager St. Louis Park City Council Meeting 030104 - 4f - CIP Reimbursement Resolution Page 3 of 4 CITY OF ST. LOUIS PARK RESOLUTION NO. 04-031 DECLARING THE OFFICIAL INTENT OF THE CITY OF ST. LOUIS PARK TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the “Reimbursement Regulations”) providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not be deemed spent unless certain requirements are met; and WHEREAS, the City of St. Louis Park (“City”) expects to incur certain expenditures that may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of the tax-exempt bond; WHEREAS, the City has determined to make this declaration of official intent (“Declaration”) to reimburse certain costs from proceeds of bonds in accordance with the Reimbursement Regulations. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK AS FOLLOWS: 1. The City proposes to undertake the following projects (the “Project”) Project Project Number Bond Cost Total Project Cost Crossings Improvement Projects 19990900 $43,018 $146,831 Lamplighter Pond - Dredging & Modifications - Area #4 20001800 $75,000 $1,569,902 Bikeways Improvement Project 20011000 $287,475 $473,919 Alley Project Paving - Edgebrook Drive 20031500 $37,423 $56,824 Sidewalk Improvement Project - Pedestrian Curb Ramps 20040100 $120,350 $120,350 Sidewalk Improvement Project - Other Segments 20040200 $294,877 $501,927 Trail Improvement Project - Other Segments 20040300 $291,240 $528,444 Street Project - Closures at RR Crossings 20041200 $108,000 $108,000 Street Project - TH 100 Noise Wall (West) 20050100 $130,075 $200,475 Street Improvement Project - W 44th Street 20050500 $100,000 $100,000 Total $1,487,458 $3,806,672 St. Louis Park City Council Meeting 030104 - 4f - CIP Reimbursement Resolution Page 4 of 4 2. The City reasonably expects to reimburse the expenditures made for certain costs of the Project from the proceeds of bonds in an estimated maximum principal amount of $1,588,000. All reimbursed expenditures will be capital expenditures, costs of issuance of the bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement Regulations. 3. This Declaration has been made not later than 60 days after payment of any original expenditure to be subject to a reimbursement allocation with respect to the proceeds of bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount not in excess of $100,000 or 5 percent of the proceeds of an issue; or (c) “preliminary expenditures” up to an amount not in excess of 20 percent of aggregate issue price of the issue or issues that finance or are reasonably expected by the City to finance the project for which the preliminary expenditures were incurred. The term “preliminary expenditures” includes architectural, engineering, surveying, bond issuance, and similar costs that are incurred prior to commencement of acquisition, construction or rehabilitation of a project, other than land acquisition, site preparation and similar costs incident to commencement of construction. 4. This Declaration is an expression of the reasonable expectations of the City based on the facts and circumstance known to the City as of the date hereof. The anticipated original expenditures for the Project and the principal amount of the bonds described in paragraph 2 are consistent with the city’s budgetary and financial circumstances. No sources other than proceeds of bonds to be issued by the City are, or are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside pursuant to the City’s budget or financial policies to pay such Project expenditures. 5. The Declaration is intended to constitute a declaration of official intent for purposes of the Reimbursement Regulations. Reviewed for Administration: Adopted by the City Council March 1, 2004 City Manager Mayor Attest: City Clerk St. Louis Park City Council Meeting 030104 - 4g - Boulevard Tree Stump Removal Contract Page 1 of 1 4g. Motion to designate A Topnotch Treecare Service, Inc. as the lowest responsible bidder and authorize execution of a contract for the 2004 Boulevard Tree and Stump Removal Program in an amount not to exceed $60,337.12 Background: Prior to 2004, all boulevard tree removals were performed by City staff, with total expense for removals covered under the Parks and Recreation Department budget. Due to budget cuts implemented in 2003, all removal costs will now be equally shared by the City and impacted property owners. City staff will identify and mark all diseased, dead and hazardous trees on boulevards for removal. Once marked for removal, staff will send a proposal to the impacted property owner for 50% of the cost of tree and stump removal (stump removal will include grinding stump, removal of grinding debris, backfilling stump hole with quality black soil and seeding area with specified grass seed mix). If the resident chooses to use A Topnotch Tree Service, Inc., the City will bill the property owner for 50% of the removal costs. If 20 days passes without a reply from the residing property owner, the City will condemn the tree. The tree will then be removed by A Topnotch Treecare Service, Inc. The cost of the removal will be assessed against the property owner’s property taxes if the bill for tree removal is not paid. Bid Analysis: Bid packages for the 2004 Boulevard Tree and Stump Removal contract were mailed out in early January to 19 tree firms. Bids were opened on February 20, 2004 at City Hall. Four bids were subsequently received in the amounts as follows: A Topnotch Treecare Service, Inc. $ 60,337.12 Emery’s Tree Service, Inc. $ 70,621.00 S & S Tree & Horticulture, Inc. $ 90,730.00 Precision Tree & Landscape, Inc. $ 95,409.00 Recommendation: Staff recommends A Topnotch Treecare Service, Inc. as the 2004 Boulevard Tree and Stump Removal Contractor. A Topnotch Treecare Service, Inc. has successfully performed similar contracts for the Cities of St. Louis Park, Richfield, and Plymouth on selected tree removals, trimmings and cabling. Prepared by: Jim Vaughan, Environmental Coordinator Cindy Walsh, Director of Parks and Recreation Approved by: Tom Harmening, City Manager St. Louis Park City Council Meeting 030104 - 4h - Private Diseased Tree Removal Page 1 of 1 4h.. Motion to designate Emery’s Tree Service, Inc. as the lowest responsible bidder, and authorize execution of a contract for the 2004 private diseased tree removal program in an amount not to exceed $155,400. Background: The City has been participating in the removal of diseased trees on private property for more than 20 years. During the initial phases, funding was provided through the Community Development Block Grant Program and subsidies were established at a 50% level. When CDBG guidelines were altered (approximately 14 years ago) the removal of diseased trees was no longer fundable. As a result, the City’s subsidy program was stepped back over the course of five years until it reached the current level (no cash subsidy) at the end of 1995. The City’s role in this process is to handle all paperwork. This includes preparing official notices, billing the homeowners, establishing a timely schedule for the removals and providing a follow-up inspection. As in previous years, an updated brochure explaining the City’s removal program has been prepared and will be distributed to all affected property owners at the time their diseased trees are identified by staff. The 2004 dutch elm disease bids reflect projected costs for the removal of 380 average-size private trees. Property owners will reimburse the entire cost for private tree removals. In 2003, there were 465 trees removed in St. Louis Park by a contractor due to Dutch Elm disease. The approved bid prices will also be used to calculate costs in cases where property owners refuse to comply with the official removal notice. In all other cases, homeowners will still be allowed to solicit their own private bids and may choose to have the work performed by a different licensed contractor at their expense. Bid Analysis: Bid packages for the 2004 private diseased tree removal contract were mailed out in early January to eleven tree firms. Bids were opened on February 20, 2004 at City Hall. Three bids were subsequently received in the amounts as follows: Emery’s Tree Service, Inc. $ 155,400.00 Precision Tree & Landscape, Inc. $ 204,514.00 S & S Tree & Horticulture, Inc. $ 207,185.00 Recommendation: City staff is recommending Emery’s Tree Service, Inc. as they have successfully performed four previous private diseased tree removal contracts for the City. Prepared by: James Vaughan, Environmental Coordinator Cindy S. Walsh, Director of Parks and Recreation Approved by: Tom Harmening, City Manager St. Louis Park City Council Meeting 030104 - 4i - Arbotect Elm Tree Injection Page 1 of 1 4i. Motion to designate Rainbow Tree Care, Inc. as the lowest responsible bidder and to authorize execution of a contract for the 2004 Arbotect 20-S Elm injection program at a cost of $9.50 per diameter inch. Background: Since the inception of the program in 1990, the City has promoted public participation in a program designed to proactively treat healthy American Elms. A specialized chemical injections of Arbotect 20-S, a fungicide, is used in an effort to preserve the community’s urban forest. When this chemical is properly applied in an on-going three-year cycle, it effectively prevents the infection of Dutch Elm Disease in approximately 99% of the treated trees. Since the program’s inception, the City has subsidized more than 5,000 tree injections. As in previous years, the City is expecting more than 300 requests for tree injections. Previously the City subsidized 40% of the cost for trees on private property and 60% of the cost for trees on public boulevards, which abut private property. This year, the City will subsidize 40% of the cost for trees on private or public property. This change in subsidy reflects 2003 budget cuts implemented in 2004. The net cost of this program is expected to be approximately $33,000 (decreased $11,000 from 2003) which is included in the 2004 Environmental Division budget. Bid Analysis: Bid packages for the 2004 Arbotect 20-S Elm Injection Program were mailed out in late December to three tree firms. Bids were opened January 30, 2004 at City Hall. One firm submitted a responsive bid, with the amount shown as follows: Rainbow Tree Care $9.50 per diameter inch The $9.50 per diameter inch bid represents a $.70 per inch increase from the previous year’s contract, however Rainbow’s 2003 contract was unchanged from 2002 (their contract price had not changed for two years). The apparent low bid is a bargain for elm tree owners. If a private homeowner were to contract for Arbotect injections on their own, they would pay twice the rate the City receives. It appears that the City’s bid, based upon a volume price, is extremely competitive. Since the inception of the program, Rainbow Tree Care has conscientiously and successfully performed all the City’s Arbotect injection contracts. Recommendation: Staff recommends approving Rainbow Tree Care, Inc. as the lowest responsible bidder and authorizes staff to execute a contract for the 2004 Arbotect 20-S Elm Injection Program as a cost of $9.50 per diameter inch. Prepared by: Jim Vaughan, Environmental Coordinator Cindy S. Walsh, Director of Parks and Recreation Approved by: Tom Harmening, City Manager St. Louis Park City Council Meeting 030104 - 4j - Planning Commission Minutes of Feb. 4, 2004 Page 1 of 3 OFFICIAL MINUTES PLANNING COMMISSION ST. LOUIS PARK, MINNESOTA February 4, 2004--6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Lynne Carper, Ken Gothberg, Claudia Johnston-Madison, Dennis Morris, Carl Robertson, Jerry Timian MEMBERS ABSENT: Michelle Bissonnette STAFF PRESENT: Judie Erickson, Janet Jeremiah, Nancy Sells 1. Call to Order – Roll Call Chair Robertson welcomed newly-appointed Commissioner Claudia Johnston- Madison to the Planning Commission. 2. Approval of Minutes of January 21, 2004 Commissioner Carper said that the following correction should be made to page 10, paragraph 4 regarding the vote for Case No. 03-78-S (2545 Huntington plat and variance): He did not abstain. The motion passed 5-0. Chair Robertson said a correction should also be made to the last sentence of page 10, paragraph 3 regarding Case No. 03-78-S (2545 Huntington plat and variance), clarifying that he would like the project to go forward. The minutes should also be amended to indicate that Chair Robertson would like to restudy the ordinance on its own merit at a future date, and not as a means to make this project work. Commissioner Gothberg moved approval of the minutes of January 21, 2004 as amended. The motion passed 6-0. 3. Hearings A. Case No. 04-01-ZA—Proposed amendments to St. Louis Park Ordinance Code (Zoning) relating to Section 36-80 Erosion Control and Section 36- 79 requirements for conditional use permits for fill or excavation of over 400 cubic yards. Ms. Erickson, Planning Coordinator, presented a staff report. She explained that the purpose of the proposed action is to consolidate into one section of the Municipal Code all the requirements and regulations that address stormwater. Two sections of the Zoning Code would be deleted: 1) erosion control; and 2) conditional use permits for fill or excavation over 400 cubic yards. Ms. Erickson said at the time the public hearing notice for the amendments was published, staff anticipated amending Section 36-79, the Conditional Use Permit section for excavation and fill over 400 cubic years. She said since staff now proposes deleting that section, a new hearing notice will be published for a public hearing on that matter. Ms. Erickson explained that removing the sections from the Zoning Code will not change the City’s regulation of surface water and erosion events. Instead it will be a shift in where the controls happen. Controls will go into the Public Works’ permitting process. The permit will include a requirement of notification to neighborhoods when there is any kind of significant truck hauling. Commissioner Carper asked if any public hearings would occur for residents with concerns about various activities such as hauling. Ms. Erickson said a hearing would occur with some uses. She explained that currently many uses require conditional use permits or PUDs. Any hauling that would be associated with a conditional use permit or a PUD would be part of that public hearing process. Ms. Erickson went on to say that if the activity was excavation for regular pond maintenance or excavation for foundations or other uses not requiring a CUP, then there would not be a public hearing. She explained that by ordinance there will be a notice process in those situations so that affected residents would have an opportunity to call staff to discuss their concerns. Commissioner Carper gave an example of a recent public hearing held at the Planning Commission for excavation at 460 Ford Road. Ms. Erickson said the only thing that required a CUP in that project was the actual excavation itself, not the building and in the future that type of situation wouldn’t require a public hearing, but there would be an avenue to voice concerns directly to staff. Janet Jeremiah, Planning and Zoning Supervisor, commented that as the public hearing was not being held on Section 36-79 (requirements for CUPs for fill or excavation of over 400 cubic yards) staff did not include a full analysis of the permitting requirements that those types of uses would entail. She said, however, the intent is to cover the issues normally discussed at the public hearing and make sure the public hearings held before the Planning Commission are catered to the development proposal and not just excavation types of issues. Ms. Jeremiah said a much more detailed analysis will be provided in the staff report for the future public hearing regarding Section 36-79. Staff is not proposing that a recommendation be made on deleting that section at this meeting, only to direct staff to bring back a full analysis. Commissioner Morris commented that when the Planning Commission reviews cases like the recent Shelard Park request for excavation, the vast majority of residents attending the hearing have no objection to the excavation, rather the objections are to the development. He said he thinks that may result with too much debate before the Planning Commission about the legitimacy of a development, as opposed to whether the excavation should be allowed. He added that there are some legitimate debates that take place but the vast majority of excavation requests before the Planning Commission are solely housekeeping items. He said he understands why staff would like to remove that from the public format into a permitting process. He suggested that triggers could be put into the permitting process which would require public hearings for certain types of excavation. Commissioner Gothberg stated that most of the excavation routes under consideration by the Planning Commission have been well developed by staff. Only in a few instances has the Commission recommended changes. He said for the future, depending on the volume of material moved, people who live on proposed hauling routes should have an opportunity to attend a neighborhood meeting as part of the permitting process. Chair Robertson opened the public hearing. As no one was present wishing to speak, the Chair closed the public hearing. Commissioner Gothberg moved to recommend approval of Ordinance Code text amendments (relating to zoning) to eliminate Section 36-80 erosion control and defer proposed amendments to Section 36-79, requesting staff to bring back an amendment deleting Section 36-79. The motion passed 6-0. 4. Unfinished Business 5. New Business 6. Communications A. Recent City Council Action – Feb. 2, 2004 7. Miscellaneous 8. Adjournment Chair Robertson adjourned the meeting at 6:22 p.m. Respectfully submitted, Nancy Sells Administrative Secretary St. Louis Park City Council Meeting 030104 - 4k - Planning Commission Study Session Minutes Feb. 4 Page 1 of 2 OFFICIAL MINUTES STUDY SESSION PLANNING COMMISSION ST. LOUIS PARK, MINNESOTA February 4, 2004—6:25 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Lynne Carper, Ken Gothberg, Claudia Johnston-Madison, Dennis Morris, Carl Robertson, Jerry Timian MEMBERS ABSENT: Michelle Bissonnette STAFF PRESENT: Judie Erickson, Janet Jeremiah, Nancy Sells OTHERS PRESENT: Michael Noonan, Rottlund Homes Tim Whitten, David Bernard Builders 1. Discussion of process to be used to evaluate proposed preliminary plat and PUD for the Quadion site. Ms. Erickson said that the developer, Rottlund Homes, is proposing to present two alternative plans for preliminary plat and PUD approval at the February 18 Planning Commission public hearing. Staff and the developer thought it would be worthwhile to discuss the process at study session, since this is unusual. The developer has been encouraged by the City Council to include the development of four lots along Oxford Street into the development. The developer is purchasing two of the lots which are already owned by Quadion. The developer has continued to pursue the purchase of the remaining two privately owned properties. The developer needs preliminary approval of the PUD and plat prior to closing on the Quadion property, and because the closing date is set for mid March, the developer is proposing to submit two alternative plans. This is a way that the closing issues and timing can be resolved. Ms. Erickson stated that the City Attorney has said a dual approach is acceptable where the Planning Commission will discuss merits of both alternatives, and make recommendations for both alternatives for preliminary plat and PUD. She displayed a design board illustrating the two alternatives but noted the design discussion will take place at the public hearing. Michael Noonan, Rottlund Homes, discussed the negotiation process for the two properties. Commissioner Morris asked how the applicant can make an application to develop property it doesn’t own. Ms. Jeremiah responded that the City Attorney has assured staff that the Planning Commission can hear the request as proposed. However, preliminary approval can’t be made by the City Council unless the properties in Alternative 1 have been purchased or the City has adopted a resolution commencing action to do so, such as occurred with the Pointe West Commons development. St. Louis Park City Council Meeting 030104 - 4k - Planning Commission Study Session Minutes Feb. 4 Page 2 of 2 Commissioner Morris asked why the PUD couldn’t be phased. Ms. Erickson said part of the proposed process is related to a possible vacation of an alley which would change the plat. Commissioner Morris asked if a private easement right could be created instead. Ms. Erickson said that changes in road location would affect the design. Commissioner Morris said his conflict is with the position of the property owner. He said he doesn’t think the Commission should make a decision about using other people’s property based on economic issues of the developer. Ms. Jeremiah responded that the City is proposing the process based on a belief that it is more desirable from a public benefit perspective to have the four properties included. She commented on not wanting to miss an opportunity to continue towards a design in keeping with the overall goals for that area. Michael Noonan noted that there is less economic benefit to Rottlund in including the four properties. However, they agree it is a better plan if the properties are included. Chair Robertson asked if there would be a replacement low income housing component in the development. Ms. Erickson said in the elderly rental portion there has been discussion to do a least a portion of that as low income, so there would be more than a replacement. Chair Robertson asked if there was a need for the Planning Commission to approve both alternatives in order for it to move to City Council, given that the Commission is a recommending body. A discussion followed about options and timing. Ms. Jeremiah said that staff will have recommendations and it is up to the Planning Commission to decide on their recommendations as well. There was general agreement with the proposed process of evaluating the preliminary plat and PUD for both alternatives. Chair Robertson adjourned the meeting at 7:05 p.m. Respectfully submitted, Nancy Sells Administrative Secretary St. Louis Park City Council Meeting 030104 - 4l - Telecommunication Commission Mintues of 12-4-03 Page 1 of 4 OFFICIAL MINUTES ST. LOUIS PARK TELECOMMUNICATIONS COMMISSION MEETING OF DECEMBER 4, 2003 AT 7:00 P.M. ST. LOUIS PARK CITY HALL, WESTWOOD ROOM MEMBERS PRESENT: Bruce Browning, Dale Hartman, Ken Huiras, Bob Jacobson, Mary Jean Overend, Rolf Peterson Rick Dworsky arrived at 7:05 p.m. STAFF PRESENT: Reg Dunlap, Civic TV Coordinator; John McHugh, Community TV Coordinator; and Linda Samson, Recording Secretary OTHERS PRESENT: Arlen Mattern, Time Warner Cable Public Affairs Administrator 1. Call to Order Chair Huiras called the meeting to order at 7:02 p.m. 2. Roll Call Present at roll call were Commissioners Browning, Hartman, Huiras, Jacobson, Overend, and Peterson. City Staff Reg Dunlap and John McHugh, and Recording Secretary Linda Samson. 3. Approval of Minutes for October 23, 2003 It was moved by Commissioner Browning, seconded by Commissioner Jacobson, to approve the minutes of October 23, 2003 without changes. The motion passed 6-0. 4. Adoption of Agenda Chair Huiras requested that the following be added to Item 5, Old Business: 5B Victory Sports Update; 5C By-laws Review; 5D EAS Test Update. It was moved by Commissioner Browning, seconded by Commissioner Jacobson, to approve the agenda as amended. The motion passed 6-0. 5. Old Business 5A Renewal Update John McHugh said the meeting with the attorney has been postponed for a short time. Mr. McHugh said Staff has received some model franchise language, and comments were St. Louis Park City Council Meeting 030104 - 4l - Telecommunication Commission Mintues of 12-4-03 Page 2 of 4 received from Time Warner Cable (“TWC”) on business points that had been exchanged earlier. Mr. McHugh commented that the Commission will need to hold a public hearing as part of the renewal proceeding at their first 2004 meeting. One of the issues being discussed is making any renewal “technology future-proof” so that the City won’t be on the tail end of technology upgrades as it was this time around. If TWC is reluctant to include upgrade provisions similar to those proposed by staff, a 10-year renewal is more likely than the 15-year term TWC wants. 5B Victory Sports Update Chair Huiras said he would like to see Victory Sports on the channel line up, that it would be a competitive advantage over satellite programmers. Mr. Mattern said TWC would like to put this expensive sports channel on a digital tier because not all subscribers want this kind of programming. Mr. Huiras asked how much Victory Sports and Fox Sports cost, since Fox was involved in the same sort of negotiations a year ago. Mr. Mattern said that Fox Sports cost $1.75 per customer and Victory proposed $2.20 per customer. 5C By-Laws Review Reg Dunlap said he has not received an update from City Clerk Cindy Reichert. 5D EAS Test Update Chair Huiras said he checked his digital tier during the Emergency Alert System (“EAS”) testing, however, there was no voice message or picture—nothing. Chair Huiras reported that on the lower analog tier, channel 11, the screen went blank and he heard the announcement perfectly well. Mr. Dunlap said he received an email from TWC’s Network Operations Manager Bernie Doffing and was informed that emergency messages will not be heard on the digital tier. In an email dated November 5, 2003, Mr. Doffing indicated he will provide details on how to utilize the federal EAS which would allow emergency messages to be heard on the digital channels. Chair Huiras recommended requesting further information from Mr. Doffing on how to access and test, and for this item to appear on a future agenda. Mr. Dunlap requested that before TWC purchases a digital channels solution for St. Louis Park, if needed, to talk to the City cable office first; and Arlen Mattern agreed. 6. New Business 6A Time Warner information on new cable rates and/or changes in the channel line up Mr. McHugh distributed a list of TWC 2003 and 2004 cable rates. Mr. McHugh expressed two concerns about the prices and changes listed by TWC, i.e., he does not see St. Louis Park City Council Meeting 030104 - 4l - Telecommunication Commission Mintues of 12-4-03 Page 3 of 4 listed non-addressable converters and Digital TV Cable Cards (see the attachment to the November 26, 2003 letter to Mr. Dunlap from Mr. Mattern) listed with all the other equipment choices and charges; and, are TWC channels 23 and 73 both leased access channels? Mr. Mattern replied that those channels are leased access, and they carry a variety of program sources. Commissioner Jacobson inquired about the accuracy of channel line ups, and Mr. Mattern said TWC does it’s best to make it accurate, but that it is a time consuming and very detailed task. Mr. Dunlap suggested placing the access fee at the top with the basic cable charge since it is part of the basic and standard cable fee, and suggested it be regrouped for the next publication. Commissioner Jacobson said he wants all services to be identified. 6B Work Plan for 2004 Commissioner Overend thinks a small group of people should work on the issue of requesting customers’ Social Security numbers. Commission Jacobson would like to publicize that St. Louis Park has public access. The Commission will plan to discuss it at the first meeting. The Commission will also discuss draft renewal and renewal hearing franchise. Commissioner Overend mentioned a large grant for the Jewish Community Center from Park Nicollet and the federal government. She would like to get the message out about various services and how best to do that. Other topics for the Commission work plan include the Pasadena Decision, the operations grant for School District 283, the TWC $100,000 equipment grant for local cable channels, due on January 1, 2004, and the City Cable TV office’s five-year budget plan. 6C Set Meetings for 2004 The meetings for 2004 are scheduled for: Thursday, February 12 March (meeting pending with the City Council at a Study Session) Thursday, May 6 Thursday, August 19 Thursday, October 21 Thursday, December 2 St. Louis Park City Council Meeting 030104 - 4l - Telecommunication Commission Mintues of 12-4-03 Page 4 of 4 For the February 12th meeting, the Commission plans to discuss franchise renewal (a public hearing), issues and concerns regarding Social Security numbers, review by-laws, the Emergency Alert System, the Pasadena Decision, and elect officers for 2004. For May 6th, School District #283 grant and the Senior Summit. For August 19th, public access and the City Cable Office’s five-year budget. For October 21st and December 2nd, discuss the TWC franchise and new prices and services. 7. Reports 7A School District Quarterly Programming Report The Commissioners thought the report was well done. Commissioner Overend said that the voice level during School Board meetings is very low and can hardly be heard. Mr. McHugh noted and inquired about the absence of programming regarding the junior high and Aquila Elementary; and he asked where the two UPSs are. Mr. Dunlap said he would follow up with the School District on these comments. Commissioner Jacobson asked what can be done to get more people involved in public access and programming, and would like to have this placed on an agenda for future discussion. 8. Communications from the Chair Commissioner Peterson was recognized for his successful election to the School Board. 9. Communications from City Staff Mr. Dunlap asked Mr. Mattern about the recent software upgrade TWC had made; Mr. Mattern said the upgrades were to the billing system, not the cable service delivery systems. 10. Adjournment Chair Huiras adjourned the meeting at 9:10 p.m. Minutes prepared by: Respectfully submitted by: Linda Samson Reg Dunlap Recording Secretary Civic TV Coordinator St. Louis Park City Council Meeting 030104 - 4m - Human Rights Minutes of 1-21-04 Page 1 of 3 City of St. Louis Park Human Rights Commission Minutes – January 21, 2004 Westwood Room, City Hall Call to Order Chair Armbrecht called the meeting to order at 7:05 p.m. Present Commissioners: Matthew Armbrecht, Kristen Edsall, Julie Kirsch, Annie Gaffney, Kristi Rudelius-Palmer, Kristin Siegesmund Staff: Martha McDonell, Commission Liaison; Officer Troy Peek, and Captain Mark Ortner Guest: Louisa Hext, Jewish Community Action Approval of Agenda Ms. McDonell suggested removing the in-house soccer update from the agenda. The agenda was approved. Approval of Minutes The minutes were approved with a minor change. Commissioner Report Ms. Kirsch gave a report on the caller who had issues with employer discrimination. She encouraged the caller to pursue the matter with the State Department of Human Rights. Ms. Rudelius-Palmer reported that the MN League of Human Rights Commissions is sponsoring a Time to Talk forum. Old Business A. INS City Separation Ordinance Louisa Hext from Jewish Community Action was present. After the presentation by Ms. Hext, the commissioners asked questions and had some discussion on the need for the ordinance. Mark Ortner reported that it is not current practice for police officers to ask for citizenship or visa documentation when someone is stopped on a police call or when someone reports a crime. He reported that the only time that St. Louis Park police officers call the INS to gather information occurs when the person has no means of identification at all. The commissioners wanted to know if the police department had a written policy that St. Louis Park City Council Meeting 030104 - 4m - Human Rights Minutes of 1-21-04 Page 2 of 3 outlined when or when not to call the INS for information. Mark Ortner said he didn’t believe there was a written policy, but that he would check. Mark Ortner reported that the number of times that this occurred, calling the INS for identification, was less than 5 or 6 times a year. The commissioners, after hearing Mark Ortner’s information, discussed the need to pursue the ordinance in our city. They felt that more research should be done to see if indeed a problem exists or was perceived as a problem by the immigrant community. On the positive side, they thought that the ordinance may have an effect on making people feel welcome and safe in our city to report crimes. The passage of the ordinance would have to be supported by comprehensive community education. On the negative side, the passage of the ordinance might give the community the impression that it was passed to remedy a problem that may not have existed. In wrapping up the discussion, the commissioners saw the need to check with partnering organizations such as Jewish Community Services and other non profits to ascertain if they would support such an ordinance. They felt they might consider the ordinance for city staff and police staff separately. The commissioners agreed to take their time gathering more information on the subject before making a decision to propose the ordinance to city council. Matt Armbrecht, the commission chair, agreed to lead the research effort on this topic. B. New Police Liaison Ms. McDonell reported that she had typed up a description for the liaison position and sent it to the Police Department for review. She then introduced Captain Mark Ortner who confirmed that he reviewed the description and felt that it was feasible. Captain Ortner introduced Officer Troy Peek who was interested in the liaison position. Captain Ortner also stated that Sgt. Dave Schumacher was interested as well. Ms. McDonell felt that a sense of connection was what the commission was hoping to establish. She stated that she would forward meeting minutes to the liaisons. She added that liaisons are not expected to attend every meeting. Ms. Rudelius-Palmer inquired if there is human rights training incorporated into the orientation of new officers. Captain Ortner responded that they revisit bias training on a yearly basis. He stated that they have brought the training program in-house. C. Year End Review of Work Plan The item was deferred to the next meeting. D. Audit Committee Report on Survey Draft Ms. Gaffney reported that she had not received the draft from the consultant. Ms. McDonell expressed her concerns about issuing payment to the consultant by April. Ms. Rudelius-Palmer would like to look at a final version of the survey at the next meeting. Ms. Siegesmund wanted St. Louis Park City Council Meeting 030104 - 4m - Human Rights Minutes of 1-21-04 Page 3 of 3 to discuss distribution methods. Ms. Rudelius- Palmer suggested a committee meeting prior to the next regular meeting to have a draft of an implementation plan. E. 2004 Student Essay Contest Promotion Ms. McDonell asked Ms. Gaffney to help with the student essay. New Business A. 2003 Year End Report of Hate Crimes Ms. McDonell reported that five hate crimes occurred throughout the year. She stated that one was considered an incident because it only involved printed flyers. Ms. McDonell informed the commission that the Police Department is now aware that the commission had not received any of the 2003 hate crime information and they would be set up a process to ensure receipt of the reports in 2004. Ms. Rudelius-Palmer inquired if all the hate crimes have been sent to the State and Ms. McDonell reported that they had. Set Agenda for Next Meeting The following items were placed on the next agenda: Survey Distribution Year End Report to Council Student Essay Contest Audit Committee Report Adjournment It was motioned by Ms. Edsall, seconded by Ms. Gaffney, to adjourn the meeting. Motion passed 6-0. Respectfully submitted, Kim Olson Recording Secretary St. Louis Park City Council Meeting 030104 - 6a - Public Hearing 2004 CDBG Allocation Page 1 of 9 6a. Public Hearing to Consider Allocation of 2004 Community Development Block Grant Funds Resolution approving the proposed use of $240,406 of 2004 Urban Hennepin County CDBF Funds, reallocation of 2002 funds, and authorizing execution of Subrecipient Agreement with Hennepin County and any related Third Party Agreements. Recommended Action: Mayor to close the public hearing. Motion to adopt the Resolution approving proposed use of funds for 2004 Urban Hennepin County Community Development Block Grant funds, reallocation of 2002 funds, and authorizing execution of Subrecipient Agreement with Hennepin County and any related Third Party Agreements Background: The City will receive approximately $240,406 in federal CDBG funds in 2004 through Hennepin County. The national objectives of the program are: • Benefit low and moderate-income persons (moderate is defined as up to 80% of median income or $54,400 for a family of four, and low is defined as up to 50% of median income or $38,450 for a family of four in 2003). • Prevention or elimination of slum or blight. • Meet a particular urgent community development need. Over the past several years, the City Council has focused CDBG funds to support capital hard cost activities (sticks and bricks) with a small portion for multifamily related support services. The emphasis has been to address improvements to the housing stock for low-income families, both single-family owners and multifamily tenants. 2004 CDBG Allocation of Funding: The City is expected to receive $240,406 in 2004 CDBG funds. As was discussed during the City Council study session on February 23, 2004 the proposed funding allocations would continue the Council’s focused approach for expending CDBG funds and meet the program’s national objectives. During the study session the Council also indicated that, in the future, alternate sources of funding should be pursued to assist in funding the TRAIL’s program. The Housing Authority of St. Louis Park discussed the proposed allocation at its February 11, 2004 Board meeting. Based on the February 23, 2004 study session discussion, the Council is asked to approve the following use of 2004 Community Development Block Grant funds. Additional detailed information regarding the proposed allocation is provided in the attached staff memo from the February 23, 2004, study session. St. Louis Park City Council Meeting 030104 - 6a - Public Hearing 2004 CDBG Allocation Page 2 of 9 Activity Budget Multifamily Rehab - Perspectives $57,500 Single Family Emergency Repair Program $45,500 Scattered Site Acquisition $62,506 Public Service Hamilton House Social Service Coordinator $3,900 TRAILS – Family Self Sufficiency Program $13,500 St. Louis Park Emergency Program - Site Acquisition $57,500 Total $240,406 Reallocation of 2002 Funds At the Study Session of February 23, 2004, the City Council reviewed the proposed reallocation of 2002 grant year funds in the amount of $237,433 to ensure expenditure of funds within the 2002 grant year timeframe. • The 2002 funds from scattered site acquisition/demo ($237,433) will be reallocated to the Wayside House Improvements ($45,200), Single Family Rehabilitation Deferred Loans, ($137,033), Social Service Coordinator at Hamilton House ($4,000) and TRAILS Self Sufficiency Program ($7,300), and Single Family Emergency Repair Program ($43,900). Next Steps: After the public hearing on March 1, 2004, and authorization of the proposed CDBG funding by the Council, staff will submit the Request for Funding to Hennepin County. Recommendation: Motion to adopt the Resolution approving the proposed use of 2004 Urban Hennepin County Community Development Block Grant funds and proposed reallocation of 2002 funds, and authorizing execution of Subrecipient Agreement with Hennepin county and any related Third Party Agreements. Attachments: Resolution February 23, 2004 Study Session Memo regarding CDBG Funds for 2004 Prepared by: Kathy Larsen, Housing Programs Coordinator Approved by: Tom Harmening, City Manager St. Louis Park City Council Meeting 030104 - 6a - Public Hearing 2004 CDBG Allocation Page 3 of 9 RESOLUTION NO. 04-032 RESOLUTION APPROVING PROPOSED USE OF FUNDS FOR 2004 URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FUNDS, REALLOCATION OF 2002 FUNDS, AND AUTHORIZING EXECUTION OF SUBRECIPIENT AGREEMENTS WITH HENNEPIN COUNTY AND ANY THIRD PARTY AGREEMENTS WHEREAS, the City of St. Louis Park, through execution of a Joint Cooperation Agreement with Hennepin County, is cooperating in the Urban Hennepin County Community Development Block Grant program; and WHEREAS, the City of St. Louis Park developed a proposal for the use of 2004 Urban Hennepin County CDBG funds made available to it; and WHEREAS, the City of St. Louis park held a public hearing on March 1, 2004 to obtain the views of citizens on local and urban Hennepin County housing and community development needs and priorities for the City’s proposed use of $240,406 from the 2004 Urban Hennepin County Community Development Block Grant. BE IT RESOLVED, that the City Council of St. Louis Park approves the following projects for funding from the 2004 Urban Hennepin County Community Development Block Grant Program and authorizes submittal of the proposal to Hennepin County. Activity Budget Multifamily Rehab - Perspectives $57,500 Single Family Emergency Repair Program $45,500 Scattered Site Acquistion $62,506 Hamilton House Social Service Coordinator & TRAILS Family Self Sufficiency Program $17,400 St. Louis Park Emergency Program - Site Acquisition $57,500 Total $240,406 BE IT RESOLVED, that the City Council of St. Louis Park, Minnesota approves the reallocation of Community Development Block Grant funds by reallocating 2002 funds as follows: $237,433 from the scattered site acquisition project, to approved existing projects: single family emergency repair program, $43,900, Wayside House $45,200 single family rehab deferred loan program $137,033 and Public Service at Hamilton House and TRAILS Self Sufficiency program $11,300. BE IT FURTHER RESOLVED, that the City Council hereby authorizes and directs the Mayor and its City Manager to execute a Subrecipient Agreement and any required Third Party Agreements on behalf of the City to implement the 2004 CDBG program. St. Louis Park City Council Meeting 030104 - 6a - Public Hearing 2004 CDBG Allocation Page 4 of 9 Reviewed for Administration: Adopted by the City Council March 1, 2004 City Manager Mayor Attest: City Clerk St. Louis Park City Council Meeting 030104 - 6a - Public Hearing 2004 CDBG Allocation Page 5 of 9 FEBRUARY 23, STUDY SESSION REPORT: 3. Grant Year 2004 Community Development Block Grant (CDBG) Funds and 2003 Housing Rehab Activity PURPOSE OF DISCUSSION: Staff would like to discuss with the City Council and receive direction on CDBG funding priorities for the 2004 CDBG program that runs from July 1, 2004 through December 31, 2005. A review of 2003 CDBG activity and a recap of 2003 housing rehabilitation activity is attached for your information. BACKGROUND: The City will receive approximately $240,406 in federal CDBG funds in 2004 through Hennepin County. This allocation reflects the nationwide decrease of CDBG funds; funding levels for St. Louis Park have declined every year since 1999 - from $280,000 to $240,000 in 2004. The national objectives of the program are: • Benefit low and moderate-income persons (moderate is defined as up to 80% of median income or $54,400 for a family of four, and low is defined as up to 50% of median income or $38,450 for a family of four in 2003). • Prevention or elimination of slum or blight. • Meet a particular urgent community development need. Over the past several years, the City Council has focused CDBG funds to support capital hard cost activities (sticks and bricks) with a small portion for multifamily related support services. The emphasis has been to address improvements to the housing stock for low-income families, both single-family owners and multifamily tenants. 1. PROPOSED 2004 CDBG ALLOCATION The proposed activities for the allocation of CDBG funds reflect the priorities described in Vision St. Louis Park and the Economic Development Strategic Plan for Housing and Business and continue the emphasis of expending funds on capital hard cost activities. Table 1: Proposed 2004 Allocation: Includes City Admin Cost Project Activity Project Amount City Admin Proposed Allocation Multifamily Rehab – Perspectives Supportive Housing $50,000 $7,500 $57,500 Emergency Repair Program – Single Family $40,000 $5,500 $45,500 Scattered Site Acquisition $54,206 $8,300 $62,506 Social Service Coordinator Hamilton House & Family Self Sufficiency Program. $15,000 $2,400 $17,400 St. Louis Park City Council Meeting 030104 - 6a - Public Hearing 2004 CDBG Allocation Page 6 of 9 Assist St. Louis Park Emergency Program with Site Acquisition $50,000 $7,500 $57,500 Total $209,206 $31,200 $240,406 Multifamily Rehab - Perspectives Supportive Housing Improvements $57,500 This project is consistent with the focus of CDBG funds to assist with capital improvements of housing for low-income residents. Perspectives Supportive Housing Program purchased and rehabbed 2 apartment buildings at 2759 and 2765 Louisiana Court in 2002-2003 to provide permanent housing for their program graduates. St. Louis Park provided $35,000 in CDBG funds toward the total project cost of $2,200,000. Minnesota Housing Finance Agency (MHFA), Hennepin County Affordable Housing Incentive Account, HUD and private sources provided the remaining funding. Perspectives ran into several unexpected costs during the rehab from substantial water damage that was not initially detected. Perspectives depleted their contingency funds and received an additional $30,000 from MHFA to complete the immediate improvements. Since completion of the rehab, two potential serious problems will get worse if not addressed in the near future. The roof on 2765 Louisiana Court is leaking and needs to be replaced; several windows and patio doors at both buildings need to be replaced along with a leaking water heater that is not expected to last much longer. Perspectives has depleted their reserves and MHFA cannot provide additional funds so Perspectives is seeking CDBG funding of $50,000 for the needed repairs. • A note regarding Oprah Winfrey Angel Network grant of $100,000 to Perspectives. Perspectives verified that they will be the recipient of a $100,000 grant from the Oprah Winfrey Angel Network. Perspectives submitted an application to the Foundation for a grant to fund their after school Kids Connection program. The grant will reimburse them for program expenses directly benefiting children in the program. The grant is for a period of 1 ½ years and examples of eligible expenses include food, transportation and program materials. The use of the funds is very restrictive and only direct client expenses are eligible. Emergency Repair Program – Single Family $45,500 This program is consistent with the Council’s focus on stick and bricks and has proven its responsiveness to low income seniors and vulnerable residents with annual incomes of 50% or less of the median area income, ($26,850 for a single household) and assets less than $25,000, and provides grants of up to $4,000 for emergencies such as leaking roofs and water heaters. Community Action for Suburban Hennepin County (CASH) currently administers this program for the City. Ten residents would be served with this allocation. Re-allocation of 2002 funds would provide additional funds for this program to maintain current level of service as noted later in this report. Scattered Site Acquisition $62,506 St. Louis Park City Council Meeting 030104 - 6a - Public Hearing 2004 CDBG Allocation Page 7 of 9 This project could remove blight, improve a substandard home and provide a new affordable ownership opportunity when the Home Renewal Program is not feasible. The county is now requiring that 20% of scattered site acquisition dollars be used for affordable housing projects. Both Habitat for Humanity and the West Hennepin Community Land Trust have indicated an interest in partnering with the City in acquisition of properties that would be rehabilitated as single-family affordable owner occupied homes and would meet the County’s affordability requirement. This funding could be shifted to assist with affordable multifamily development if the situation arises. Direction from the Council would be sought when properties are identified for development. Social Service Coordinator Hamilton House & Family Self Sufficiency Program $17,400 The purpose of this activity is to provide an on-site social service coordinator for residents (seniors and adults with disabilities) at St. Louis Park Housing Authority’s Hamilton House and self-sufficiency support to Section 8 and Public Housing residents. STEP will be the provider of the coordinator services at Hamilton House. The Family Self Sufficiency program assists Section 8 and Public Housing tenants to gain self-sufficiency, the Public Housing program has provided funding for this program and it has been discontinued by HUD. Currently 42 families are participating in this program with results that lead to full employment, family stability and homeownership. Assist St. Louis Park Emergency Program (STEP) with Acquisition of Building $57,500 CDBG funds of $50,000 are proposed to assist STEP with the purchase of a building for the food shelf and emergency services and counseling for low-income residents. STEP’s Board is in the process of developing a relocation plan and is being advised that purchase of a building would be cost effective and provide a permanent space for their activities. City staff continues to meet with STEP, School District reps and other community stakeholders to assist STEP. In the event STEP locates a feasible building to purchase, CDBG funds would provide “first-in” monies to leverage STEP’s fund raising potential. City Administrative Costs In the past CDBG funding was fully expended for project activity and staff administrative time was funded by the General Fund or Housing Rehabilitation Fund. Due to City budget cuts and the adoption of the 2004 budget, staff administrative time related to CDBG activity will be reimbursed with CDBG funding and accounts for approximately 13% of allocation, resulting in the redirection of approximately $30,000 from project activity to City administrative costs. 2. PROPOSED REALLOCATION OF 2002 FUNDS $227,433 The CDBG funding cycle results in expenditures from 3 grant years in any given calendar year. Reallocation of funds from one grant year to another allows the flexibility to ensure community St. Louis Park City Council Meeting 030104 - 6a - Public Hearing 2004 CDBG Allocation Page 8 of 9 needs are met as they arise. Staff suggest that re-allocation of 2002 funds be included with the 2004 grant year resolution. There is a balance of $227,433 for scattered site acquisition activity that will not be expended as required by June 2004. It had been anticipated that these funds would be used to assist in the removal of blighted properties. However, blight removal of two properties was completed with private funds and CDBG funds were unnecessary. Securing blighted or distressed properties for the Home Renewal program has become increasingly difficult as the single family sales market has resulted in a high level of private activity to rehab and renovate potential program homes. The following activities can expend funds by June 2004. Table 2: 2002 Proposed Reallocation: Includes City Admin Cost Project Activity Project Amount City Admin Reallocation Amount Wayside House - Multifamily $40,000 $5,200 $45,200 Single Family Rehab Deferred Loan Program $137,033 $0 $137,033 Social service coordinator at Hamilton House and Family Self Sufficiency Program. $10,000 $1,300 $11,300 Emergency Repair Program - Single family $30,000 $3,900 $33,900 Total $217,033 $10,400 $227,433 Wayside House Improvements $45,200 Wayside provides supportive housing to recovering chemically dependent low-income women, or women and their children. Wayside House began renovations to their apartment buildings at 1341 and 1349 Jersey in 2003 and received $80,000 of CDBG funds for renovations. Despite funding from MHFA, the Family Housing Funds and Hennepin County, the current rehab project is short funds. The additional $40,000 will ensure completion of the project. Single Family Rehabilitation Deferred Loans $137,033 This is the primary ongoing CDBG rehab loan program targeted for homeowners with annual income of 50% or less of the median area income (MAI), $38,450 for a household of 4, and assets less than $25,000. The rehab focuses on improvements to bring homes into code compliance and provide long-term maintenance free housing. The maximum loan amount is $20,000 and is forgiven after 15 years. Repayment is required if homeowners sell the property before the 15-year period expires. The county met the City’s desired production rate of 8 properties in 2003. This is an ongoing single family rehab project that is not being allocated funds in 2004 if the reallocation is approved. The County has been administrating this program and can technically expend the funds if they are obligated by June 2004. Since the single family rehab deferred loan program is administered by the county, City staff time is not expended nor reimbursed. St. Louis Park City Council Meeting 030104 - 6a - Public Hearing 2004 CDBG Allocation Page 9 of 9 Social Service Coordinator Hamilton House & Family Self Sufficiency Program $11,300 The purpose of this activity is described in the 2004 proposed allocation and is to serve Housing Authority residents at Hamilton House and the Section 8 and Public Housing self-sufficiency program. Emergency Repair Program – Single Family $33,900 Re-allocation of 2002 funds would provide additional funds for this program described in the 2004 proposed allocation. It serves home owners that are primarily low income seniors and vulnerable residents (annual income of 50% or less of the median area income, $26,850 for a single person household and assets less than $25,000). Approximately 10 more residents would be served with this reallocation. City Administrative Costs As with the 2004 allocation, staff time related to CDBG activity will be reimbursed with CDBG funding and accounts for approximately 13% of reallocation administered by the City. Since the single family rehab deferred loan program is administered by the county, City staff time is not expended nor reimbursed. NEXT STEPS Staff requests Council direction on the proposed 2004 allocation and the reallocation of 2002 funds. The following is a schedule of action required by the City to receive 2004 CDBG funds: February 19, 2003 Notice of public hearing is published March 1, 2003 Public hearing; passage of Resolution outlining proposed activities March 5, 2003 Submission of application to Hennepin County Attachment: Status Report of 2003 CDBG Activity and Housing Rehab Activity Prepared by: Kathy Larsen, Housing Programs Coordinator Approved by: Tom Harmening, City Manager St. Louis Park City Council Meeting 030104 - 8a - Park Commons East PUD Amendment Page 1 of 13 8a. Request of TOLD Development Company for a Major Amendment to the Park Commons East Planned Unit Development to convert four two-story units to eight one-story units thereby increasing the number of units for Phase NE (Excelsior & Grand Phase II) from 120 to 124 at 3707 and 3709 Grand Way. Case Nos. 04-03-PUD Lot 1, Block 1, Park Commons East 2nd Addition. Recommended Action: Motion to adopt a resolution approving the Major Amendment to the Park Commons East PUD granting Final PUD approval for Phase NE (Excelsior & Grand Phase II) subject to conditions included in the resolution and authorize the Mayor and City Manager to execute amendments to the Planning Contract. Comprehensive Plan: Commercial Mixed Use and High-Density Residential Zoning: “M-X” Mixed Use and “R-C” High-Density Residential BACKGROUND In July of 2001, the City Council approved the Final PUD and plat for Park Commons East Phase I, which is complete and almost fully occupied. Phase I includes 338 rental units and approximately 65,000 sq. ft. of retail. When Phase I was approved, the overall “Excelsior and Grand” (Park Commons East) project was expected to have approximately 660 housing units, of which at least 35 were to be owner occupied, approximately 82,000 sq. ft. of retail and approximately 37,500 sq. ft. of office. However, the overall development was approved in concept only, and future phases were to obtain preliminary and final PUD and plat approval prior to construction. On September 15, 2003, the City Council approved the Final Plat and Major PUD Amendment granting Final PUD approval for Phase II, which was identified on the 2001 PUD plans as Future Phase NE. The Phase II approval allowed approximately 4,500 square feet of ground floor retail/service along the town green and up to 120 condominium units with approximately 177 below-ground resident parking spaces subject to conditions. One of the conditions required individual exterior entrances for ground floor units along Park Commons Drive and a minimum of four two-story condominium units. The property was subsequently transferred from the St. Louis Park EDA to TOLD, and the project is currently under construction. Construction of the Phase II condominium building is on schedule, and sales are generally going well. However, the four two-story condominiums are not selling. Therefore, TOLD is requesting an amendment to convert the four two-story units to eight single-story units (for a St. Louis Park City Council Meeting 030104 - 8a - Park Commons East PUD Amendment Page 2 of 13 total of 124 units). They would maintain the individual ground floor entrances on Park Commons Drive. Therefore, the site plan and building elevations would not change (see attachments). On February 18, 2004, the Planning Commission held a public hearing on the proposed amendment. No one from the public was present to speak to the item. Bob Cunningham from TOLD Development answered some questions (see attached excerpt of unapproved minutes) and presented a virtual tour of the proposed condominium unit type. The Planning Commission recommended approval on a vote of 6-0 subject to the conditions recommended by staff. Those conditions have been included in the attached resolution. If the City Council is interested, Mr. Cunningham is willing to present the virtual tour at the City Council meeting. The presentation takes only a few minutes. Issue: Ø Does the request meet the intent of the conditions of Phase II approval? Ø Is the total number of units still within EAW parameters? Ø Would additional parking be required? Analysis: Ø Does the request meet the intent of the conditions of Phase II approval? The Phase II condition requiring the two-story units was intended to offer a variety of housing types within the project. This was viewed as a desirable means to help meet the life-cycle needs of the community. However, the developers have been marketing the condominium project for almost a year and have been unable to generate interest in the two-story for-sale units. The two- story apartment units are renting fairly well. However, prospective owners tend to view such a significant purchase as a long-term investment. They may be concerned that at some point they will need one-story living, or they may believe that the one-story units will have a better resale value in an aging market. The two-story units are not as efficient, since the stairs take up living space. Therefore, they also do not appear to be as good a value for the money. Whatever the reason, the two-story units seem unnecessary to meet the life-cycle needs of the community, since they are not selling. This was predicted by the market study consultant, but TOLD was still willing to give the two-story units a try based on the direction from the City. On the other hand, the individual exterior entrances from the street are popular and will be retained. In fact, the prospective owner of the southeast corner unit has requested that a walk-up be added. This is reflected in the attached site plan and elevation. Ø Is the total number of units still within EAW parameters? The Environmental Assessment Worksheet (EAW) for the overall project analyzed 660 units. With the existing Phase I and proposed Phase II unit counts, the total so far would be 462. This leaves almost 200 units for future phases, which should be adequate. However, it should also be noted that the amount of commercial space will likely be substantially less than what was St. Louis Park City Council Meeting 030104 - 8a - Park Commons East PUD Amendment Page 3 of 13 analyzed in the EAW. Therefore, if the residential numbers increase, the overall impacts may not be greater. However, an amendment or addendum to the EAW would be recommended by staff prior to considering any numbers that would exceed EAW thresholds. Ø Would additional parking be required? The four two-story units were all two-bedroom units, whereas the proposed eight one-story units would all be one-bedroom units. Therefore, the number of bedrooms would not change. Since TOLD’s parking analysis was accepted based upon providing approximately one underground resident space per bedroom, staff is not recommending any change to the required parking. Recommendation: Staff recommends approval of the Major Amendment to the PUD to convert four two-story units to eight one-story units thereby increasing the number of units for Phase NE (Excelsior & Grand Phase II) from 120 to 124 subject to the following conditions: a. Retention of the individual exterior entrances for ground floor units along Park Commons Drive and Wolfe Parkway. b. Retention of 177 below-ground resident spaces in Phase II. c. Execution of amendments to the Planning Contract, EDA Redevelopment Contract, and any other documents that may require amendment as determined by the City and EDA Attorneys. Such amendments may be required to be executed prior to issuance of a building permit addendum for the condominium unit changes. d. Adherence to all other previously approved PUD and plat conditions. Attachments: Ø Proposed Resolution Ø Excerpt from 2/18/04 Unapproved Planning Commission Minutes Ø TOLD’s Application for a Major PUD Amendment (Supplement) Ø Approved Phase II Site Plan and Elevations (Supplement) Prepared By: Janet Jeremiah, Planning & Zoning Supervisor Approved By: Tom Harmening, City Manager St. Louis Park City Council Meeting 030104 - 8a - Park Commons East PUD Amendment Page 4 of 13 RESOLUTION NO. 04-033 Amends and Restates Resolutions No. 01-065, 01-091, 01-146, 03-096, and 03-126 A RESOLUTION AMENDING AND RESTATING RESOLUTION 03-126 ADOPTED ON SEPTEMBER 15, 2003 APPROVING AN AMENDMENT TO A FINAL PLANNED UNIT DEVELOPMENT (PUD) UNDER SECTION 36-367 OF THE ST. LOUIS PARK ORDINANCE CODE RELATING TO ZONING FOR PROPERTY ZONED “M-X” MIXED USE AND “R-C” HIGH DENSITY RESIDENTIAL GRANTING AMENDMENT TO A FINAL PUD TO CONVERT FOUR TWO-STORY UNITS TO EIGHT ONE-STORY UNITS FOR PHASE NE (EXCELSIOR AND GRAND PHASE II) WHEREAS, Excelsior & Grand II, LLC has made application to the City Council for a major amendment to a Final Planned Unit Development (Final PUD) under Section 36-367 of the St. Louis Park Ordinance Code to convert four two-story units to eight one-story units thereby increasing the number of units for Phase NE (Excelsior & Grand Phase II) from 120 to 124 at 3707 and 3709 Grand Way within a M-X Mixed Use and R-C High Density Residential Zoning District having the following legal description: Lot 1, Block 1, Park Commons East Second Addition WHEREAS, the City Council has considered the advice and recommendation of the Planning Commission (Case No. 04-03-PUD) and the effect of the proposed amendment to the Final PUD to permit the conversion of four two-story units to eight one-story units on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions and the effect on values of properties in the surrounding area, the effect of the use on the Comprehensive Plan, and compliance with the intent of the Zoning Ordinance. WHEREAS, the City Council has determined that the amendment to the PUD will not be detrimental to the health, safety, or general welfare of the community nor with certain contemplated traffic improvements will it cause serious traffic congestion nor hazards, nor will it seriously depreciate surrounding property values. The Council has also determined that the proposed Final PUD is in harmony with the general purpose and intent of the Zoning Ordinance and the Comprehensive Plan and that the requested modifications comply with the requirements of Section 36-367(b)(5) and 36-266(16). WHEREAS, the City Council approved the Preliminary PUD for the overall Park Commons East redevelopment on June 4, 2001, Resolution No. 01-049; and WHEREAS, the City Council approved the Final PUD for Park Commons East on July 23, 2001, Resolution 01-065, and St. Louis Park City Council Meeting 030104 - 8a - Park Commons East PUD Amendment Page 5 of 13 WHEREAS, the City Council adopted Resolution No. 01-091 on September 4, 2001 approving an amendment to the approved Final PUD to change the name of the north-south Town Green streets to Grand Way and separate the plat and PUD resolutions, and WHEREAS, the City Council adopted Resolution No. 01-146 on December 17, 2001 approving an amendment to the approved Final PUD to allow issuance of building permits for work through January 15, 2002 prior to recording of the Park Commons East plat, easement and planning contract, and WHEREAS, the Final PUD approval for Park Commons East granted concept approval only for future phases, requiring such phases to obtain subsequent Preliminary and Final PUD approval, and WHEREAS, the City Council approved the Preliminary PUD for Phase NE (Excelsior and Grand Phase II) on August 4, 2003, Resolution No. 03-096; and WHEREAS, an application for approval of a Final Planned Unit Development (PUD) was accepted as substantially complete on August 28, 2003 from the applicant, and WHEREAS, the Planning Commission reviewed the Final PUD for Phase NE (Excelsior and Grand Phase II) at the meeting of September 3, 2003, and WHEREAS, the Planning Commission recommended approval of the Final PUD for Phase NE (Excelsior and Grand Phase II) on a 6-0 vote with all members present voting in the affirmative, and WHEREAS, the City Council approved the Final PUD for Phase NE (Excelsior and Grand Phase II) on September 15, 2003, Resolution No. 03-126, and WHEREAS, the Planning Commission recommended approval of the amendment to the Final PUD for Phase NE (Excelsior and Grand Phase II) at the meeting of February 18, 2004 on a 6-0 vote with all members present voting in the affirmative, and WHEREAS, the City Council considered the staff reports, Planning Commission minutes and testimony of those appearing at the public hearing or otherwise including comments in the record of decision, and WHEREAS, it is the intent of this resolution to continue and restate the conditions of the permit granted by Resolution Nos. 01-065, 01-091, 01-146, 03-096, and 03-126 to add the amendment now required, and to consolidate all conditions applicable to the subject property in this resolution, and WHEREAS, the contents of Planning Case Files 01-07-PUD, 03-19-PUD, and 04-03- PUD are hereby entered into and made part of the public hearing and the record of decision for this case. St. Louis Park City Council Meeting 030104 - 8a - Park Commons East PUD Amendment Page 6 of 13 CONCLUSION NOW THEREFORE BE IT RESOLVED that Resolution No. 03-126 (filed as Document No. 8227407) is hereby restated and amended by this resolution which continues and amends a Final Planned Unit Development to the subject property for the purpose of permitting the conversion of four two-story units to eight one-story units thereby increasing the number of units for Phase NE (Excelsior & Grand Phase II) from 120 to 124 at 3707 and 3709 Grand Way within a M-X Mixed Use and R-C High Density Residential Zoning District at the location described above based on the following conditions: 1. The site shall be developed, used, and maintained in conformance with the Final PUD official exhibits, which may be amended according to the provisions of the planning contract between TOLD and the City of St. Louis Park and to meet the conditions of Final PUD approval. a. to address the recommendations of the Public Works Department dated 7/3/01. b. to address the Plumbing Inspector’s comments dated 7/2/01. c. to preserve the trees on the north side of 38th Street (proposed Grand Place) in front of Westmoreland Hills condominiums. (38th Street changed to Park Commons Drive by Ordinance No. 2211-01 adopted on October 3, 2001.) d. to increase the length of the median at Market Avenue and Excelsior Boulevard per the recommendation of the traffic consultant. (Market Avenue changed to Grand Way per Final Plat and Condition No. 1, adopted on September 4, 2001.) e. to meet minimum tree replacement ordinance requirements (that are not related to a cash in lieu payment). f. to coordinate town green and public streetscape improvements with Excelsior Boulevard streetscape plans and input from the selected artist consultant. g. to coordinate park edge improvements with amphitheater plans. h. to address comments from Metro Transit regarding transit locations and improvements. i. to address conditions of required permits from the Watershed District, MPCA, and City. j. to show the names of streets as approved on the Final Plat and current names of 38th/39th Street, which may be changed later by ordinance. (38th/39th Street changed to Park Commons Drive by Ordinance No. 2211-01 adopted on October 3, 2001.) k. to address final construction changes to the Phase I Official Exhibits and to adopt Final PUD Official Exhibits for Phase II in accordance with condition 14 (adopted on September 15, 2003). 2. The Park Commons East Phase 1 Final PUD approval includes code deviations to allow daycare as a retail/service use, right-of-way and street designs, open space, FAR/GFAR, building setbacks, bufferyards, and off-street parking as shown on the official exhibits based upon a finding of general consistency with the approved Redevelopment Plan and subject to any other conditions of final approval. St. Louis Park City Council Meeting 030104 - 8a - Park Commons East PUD Amendment Page 7 of 13 3. Outdoor seating is permitted in association with restaurants and food service uses subject to any conditions of Final PUD approval for that phase, easement provisions, health codes, and approval of specific outdoor seating plans by the Zoning Administrator. 4. All parking shall be open to the general public at all times except as follows: on-street parking may be restricted by the City, below-ground parking may be restricted to building residents, and a plan for valet parking may be approved by the City. 5. If parking is deemed inadequate by the City based upon evidence of parking in fire lanes, drive aisles or other inappropriate areas, the developer shall be required to rectify the situation in accordance with the provisions of the planning contract. 6. Proposed “Grand Place” north of 38th/39th may be closed for events as approved by the City. (Street names changed to Grand Way and Park Commons Drive per Final Plat and Condition No. 1 adopted on September 4, 2001.) 7. The developer is required to comply with all provisions of the planning contract, development agreement with the EDA, Metropolitan Council LCDA grant agreement(s), MPCA and Watershed District approvals. 8. Specific responsibility for financing and construction of the following required Phase 1 improvements shall be addressed by the Planning Contract: a. construction of all streets, on-street parking, and utilities, within the entire PUD area. b. completion of streetscape improvements, including bicycle and transit amenities, adjacent to all Phase 1 properties and Wolfe Park. c. construction of temporary bituminous sidewalks in accordance with a plan approved by the Zoning Administrator. d. regrading of the southern portion of Wolfe Park, relocation/reconstruction of the existing trail, and construction of the park edge road, parking, approved hard surface sidewalk between parking and trail, plantings and streetscape subject to approved final plans. e. construction of the entire town green from Excelsior Boulevard to Wolfe Park in accordance with approved final town green plans with temporary sidewalks north of 38th/39th until permanent sidewalks/streetscape are completed during construction of each future phase. (38th/39th Street changed to Park Commons Drive per Ordinance No. 2211-01 adopted on October 3, 2001.) f. construction of the Phase 1 public parking ramps in accordance with approved final plans. g. construction of the police substation and public restrooms in accordance with approved final plans. h. construction of traffic improvements and installation of traffic control and directional signage in accordance with approved final plans. i. construction of 18 project-based two-bedroom Section 8 units in accordance with public housing agreements. 9. Prior to any site work other than demolition for Park Commons East Phase One: a. the Final Plat and PUD for Phase 1 shall be approved. b. final construction documents for public infrastructure (street, underground utilities; not streetscape) improvements shall be approved by the Public Works Director. St. Louis Park City Council Meeting 030104 - 8a - Park Commons East PUD Amendment Page 8 of 13 c. required erosion control permits, utility permits, and other required permits shall be obtained from the City, Hennepin County, Watershed District and any other required agencies. d. the MPCA shall be informed of the plans to regrade the southern portion of Wolfe Park and approval shall be received prior to regrading the park, if needed. e. a final tree preservation plan shall be approved by the Zoning Administrator and any necessary construction fencing shall be in place. f. plans for maintaining access to existing private condominium parking during construction shall be approved by Public Works and the affected property owners, if temporary construction easements are necessary. 10. Prior to issuance of any building permits, which may impose additional conditions: a. Evidence of recording the final plat, easements, and planning contract shall be submitted to the City ,except that Section 14.912F of the St. Louis Park Ordinance Code and the recording requirements are waived to allow, prior to recording of the plat, easement and planning contract, the issuance of building permits authorizing work through and including January 15, 2002. b. the Indirect Source Permit shall be approved by the MPCA, if necessary. c. A lighting and photometric plan shall be approved by the Zoning Administrator. d. An irrigation plan shall be approved by the Zoning Administrator. e. Exterior building material/colors shall be approved by the Zoning Administrator. f. Final plans for a police substation and adjacent public restrooms shall be approved by the Police Chief and Community Development Director. 11. Prior to installation of any private signage, sign permits shall be approved by the Zoning Administrator. 12. Future phases of the Final Plat and PUD are approved in general concept only and subject to the following conditions of approval: a. All future phases are required to apply for subsequent Preliminary and Final Plat and PUD approval for those phases; such Preliminary and Final approval may be considered concurrently subject to Code and any pertinent provisions of the development agreements. b. Curb cuts, permanent sidewalks and streetscape adjacent to future phases shall be completed during construction of each future phase. c. A minimum of 35 stacked townhomes for owner-occupants shall be included in Future Phase E and/or Future Phase NE; additional condominiums and changes to proposed building height may be approved for Future Phase NE based upon recommendations of a market study. (Amended by Condition No. 14 on August 4, 2003 and September 15, 2003.) d. The City may consider proposals for permanent use of Future Phase W, subject to the provisions in the existing development contract between TOLD, EDA and City, either on its own or combined with potential redevelopment of the property to the west. However, the City may retain the Future Phase W property indefinitely and use it for such uses as the City may deem appropriate, including potential transit and parking uses. e. Variances to the 80 feet minimum lot width of the “R-C” District may be approved subject to Preliminary and Final Plat and PUD approvals. St. Louis Park City Council Meeting 030104 - 8a - Park Commons East PUD Amendment Page 9 of 13 f. Allowable Code deviations are subject to the approved Redevelopment Plan and future Preliminary and Final PUD approvals. g. Approval for construction of future phases is contingent upon provision of adequate parking, which may include interim parking as approved by the City, and must include 75 weekday and 200 evening/weekend parking spaces, in excess of other needs of the development, for town green and Wolfe Park uses. 13. Prior to execution of the Final Plat for each subsequent phase: a. preliminary and final plat/PUD approval shall be obtained for that phase. b. the existing development agreement shall be amended as necessary and a new planning contract shall be executed between the developer and City/EDA. c. public sidewalk easements shall be approved by the City Attorney for those areas of private development lots between the public street and building setback. 14. The Planned Unit Development shall be amended on September 15, 2003 to incorporate all of the preceding conditions and to grant Final PUD approval to Park Commons East Phase NE (Excelsior and Grand Phase II) subject to the following conditions: a. The site shall be developed, used and maintained in conformance with the Phase II Final PUD official exhibits, which shall be amended prior to signing to meet the following conditions: i. Double fixture lights matching Phase I shall be added as necessary to meet light levels as required by the Public Works Director. Black light poles shall be used along Grand Way and green poles elsewhere to match Phase I. ii. All plans shall reflect additional parking on the east side of Wolfe Parkway as approved by the Zoning Administrator and Public Works Director. iii. Plant species east of Wolfe Parkway shall be approved by the Park & Recreation Director. (Amended by Condition 15 on March 1, 2004) b. There shall be a minimum of approximately 4,500 square feet of gross leasable ground floor retail/service space in the “M-X” District portion of Phase II. c. There shall be a maximum of 120 condominium units and such development shall include individual exterior entrances for ground floor units along Park Commons Drive and Wolfe Parkway and a minimum of four two-story units. (Amended by Condition 15 on March 1, 2004) d. Parking shall comply with the following: i. There shall be a minimum of approximately 177 below-ground parking spaces for residents in Phase II. ii. Temporary public parking on future phase NW is required to be completed and available from May 15, 2003 until all permanent public parking is restored and available. Future phase NW shall not be used for construction worker parking, construction staging or construction trailers. Alternate parking solutions will be required if adequate public parking is not maintained at all times in accordance with PUD, redevelopment agreement and planning contract requirements. St. Louis Park City Council Meeting 030104 - 8a - Park Commons East PUD Amendment Page 10 of 13 iii. Construction worker parking and screening shall be installed on Future Phase E in accordance with final plans approved by the Zoning Administrator; construction worker parking shall be installed and available prior to the start of Phase II construction or an alternate interim plan approved by the Zoning Adminstrator. Future Phase E shall not be used for construction staging or construction trailers. Approval of the temporary gravel surface is contingent upon the developer maintaining adequate dust control. e. Prior to starting any site work, the following conditions shall be met: i The City Attorney shall approve the association documents and other final plat documents, which shall be signed as required. ii. The Planning and EDA Redevelopment Contracts shall be amended to reflect all changes as necessary to address the Phase II approvals and to address, at a minimum, changes in the approved number of condominium units, construction staging/routes/hours/duration, required completion of improvements prior to occupancy and to address town green/park use, allowable administrative amendments, revised construction commencement/completion dates, prevention of garage space sales and rental to non-residents, and consistency between documents as required and approved by the City Attorney. iii. A new sidewalk easement shall be approved by the City Attorney and recorded against the Phase II property, and as-built Phase I drawings shall be recorded per the executed Phase I sidewalk easement. iv. Phase I and Phase II official exhibits shall be amended as required and signed by the City and applicant. v. Construction worker parking and screening shall be installed and available for use or an alternate interim plan approved by the Zoning Administrator. Approval of the temporary gravel surface on Future Phase E is contingent upon the developer maintaining adequate dust control f. The hours of Phase II construction shall be limited as follows: All outdoor activity and loud equipment operation shall be limited to the hours between 7:00 am and 5:00 pm weekdays and 9:00 am and 5:00 pm on holidays; no such activity shall take place on weekends. Indoor construction activity that does not involve loud equipment shall be limited to the hours between 7:00 am and 10:00 pm on weekdays and 9:00 am and 10:00 pm on weekends and holidays. The Zoning Administrator may approve outdoor construction beyond 5:00 pm weekdays and on weekends provided the developer requests such approval at least 24 hours in advance and, if approved, the developer is required to provide notice to neighbors as determined by the Zoning Administrator. Construction activity shall comply with all City ordinances at all times. g. Prior to issuance of any Phase II building permits, which may impose additional conditions, the following conditions shall be met: i. color samples of all Phase II materials not used on Phase I, including a color sample of the Phase II crown material, shall be submitted and approved by the Zoning Adminstrator. St. Louis Park City Council Meeting 030104 - 8a - Park Commons East PUD Amendment Page 11 of 13 ii. a final lighting plan shall be approved by the Public Works Director and Zoning Administrator. h. The developer shall pay an administrative fine of $750 per violation of any condition of this approval. 15. The Planned Unit Development shall be amended on March 1, 2004 to allow the conversion of four two-story units to eight one-story units for a total of 124 Phase NE (Excelsior & Grand Phase II) condominium units and to incorporate all of the preceding conditions and add the following conditions: a. Retention of the individual exterior entrances for ground floor units along Park Commons Drive and Wolfe Parkway. b. Retention of 177 below-ground resident spaces in Phase II. c. Execution of amendments to the Planning Contract, EDA Redevelopment Contract, and any other documents that may require amendment as determined by the City and EDA Attorneys. Such amendments may be required to be executed prior to issuance of a building permit addendum for the condominium unit changes. d. Adherence to all other previously approved PUD and plat conditions. Assent form and official exhibits must be signed by applicant (or applicant and owner if applicant is different from owner) prior to issuance of building permit. Approval of a Building Permit, which may impose additional requirements. The City Clerk is instructed to record certified copies of this resolution in the Office of the Hennepin County Register of Deeds of Registrar of Titles as the case may be. Reviewed for Administration: Adopted by the City Council March 1, 2004 City Manager Mayor Attest: City Clerk 04-03-PUDamend St. Louis Park City Council Meeting 030104 - 8a - Park Commons East PUD Amendment Page 12 of 13 Excerpts Unofficial Minutes St. Louis Park Planning Commission February 18, 2004 3. Hearings C. Case No. 04-03-PUD—Request of TOLD Development Company for a Major Amendment to the Park Commons East Planned Unit Development to convert four two-story units to eight one-story units thereby increasing the number of units for Phase NE (Excelsior & Grand Phase II) from 120 to 124 at 3707 and 3709 Grand Way. Ms. Jeremiah presented a staff report. She stated that Phase II approval allowed up to 120 condominium units subject to conditions. One of the conditions required individual exterior entrances for ground floor units along Park Commons Drive and a minimum of four two-story condominium units. She explained that construction of the Phase II condominium building is on schedule, and sales are generally going well. She stated, however, that the four two-story condominiums are not selling and TOLD is requesting the amendment to convert the four two-story units to eight single-story units for a total of 124 units. Individual ground floor entrances on Park Commons Drive would be maintained and the site plan and building elevations would not change. She presented a before and after elevation drawing illustrating the entry stoops. Ms. Jeremiah said that the units would then all line up and be the same type for all four stories of the building. She said there will be ground floor entries to two other units, one of which was anticipated at approval in September, 2003. The corner unit also requested a ground floor entry which wasn’t anticipated and that is a change staff approved via the building permit process, so there will be six entry stoops on Park Commons Drive providing a nice streetscape amenity. Commissioner Morris asked even though the conversion is from two story to one story would all of the units still have interior access to the corridor. Ms. Jeremiah responded that was correct, now the second story units would also have interior access to the corridor. Ms. Jeremiah commented that staff had looked at the intent of having the two-story units and found they were considered desirable as a means of providing a variety of life cycle housing opportunities for St. Louis Park residents in keeping with many of the City’s housing goals. She explained that the developer has been marketing these units for almost one year and has been unable to generate interest in them. Prospective buyers might be concerned that at some time they will need one-story living. They might be concerned about resale values in an aging demographic market. Also, the two-story units aren’t as efficient because the stairs take up living space, so they may not be viewed as quite as good a value. Ms. Jeremiah said that whatever the reason, they don’t seem necessary to meet the life cycle housing needs because they aren’t selling. She added St. Louis Park City Council Meeting 030104 - 8a - Park Commons East PUD Amendment Page 13 of 13 that on the other hand the individual exterior entrances have been very popular and provide diversity. Ms. Jeremiah said staff had looked at the Environmental Assessment Worksheet parameters to determine that the changes remain within the types of analysis that was done for traffic and other environmental factors. The EAW analyzed a total of 660 units overall for the 15 acre redevelopment. Ms. Jeremiah explained with Phase I and II, units would be up to 462, so there would still be almost 200 units available for future phases, which should be adequate. She said that the amount of commercial space has been dropping relative to the EAW, which is probably more important from a traffic impact, so if need be, the EAW could be re-analyzed, but that is not recommended or necessary at this time. Ms. Jeremiah said staff also looked at whether additional parking would be required. The four two-story units would have been two-bedroom units, whereas the one- story units would all be one-bedroom units, so no change in number of bedrooms is proposed overall for the project. The parking analysis was done based on the number of bedrooms, so staff doesn’t see a change there or the need for additional parking. Ms. Jeremiah reviewed the conditions proposed for the major amendment. Bob Cunningham, TOLD Development, gave a slide presentation of a condominium unit which is similar to what is currently being proposed in the PUD major amendment. Commissioner Morris asked about storage units. Mr. Cunningham said storage is optional in the project. He said they are finding they have ample storage and ample parking. If they project out the last 30 units, they are about 10-12 parking stalls extra and certainly have enough storage space to accommodate buyers. Chair Robertson opened the public hearing. As no one was present wishing to speak, the Chair closed the public hearing. Commissioner Johnston-Madison made a motion recommending approval of the Major Amendment to the Park Commons East PUD granting Final PUD approval for Phase NE (Excelsior & Grand Phase II) subject to conditions recommended by staff. The motion passed 6-0. St. Louis Park City Council Meeting 030104 - 8b - Designation of Deputy City Manager Page 1 of 2 8b. Confirmation of Appointment of Nancy Gohman as Deputy City Manager Recommended Action: Motion to adopt resolution confirming the appointment of Nancy Gohman as Deputy City Manager effective March 1, 2004 Background: With the appointment of Thomas Harmening as City Manager, a new Deputy City Manager must be designated. City Code Section 2-91 grants authority for the City Manager to appoint a Deputy who will act in the Manager’s absence. Mr. Harmening has chosen to designate Nancy Gohman, Human Resources Director, to act as Deputy City Manager. In addition to her regular duties, Ms. Gohman will ensure efficiency of operations by acting as City Manager should the need arise. The adoption of this resolution by the council will confirm the City Manager’s appointment. Attachments: Resolution Prepared By: Cynthia Reichert, City Clerk Approved By: Tom Harmening, City Manager St. Louis Park City Council Meeting 030104 - 8b - Designation of Deputy City Manager Page 2 of 2 RESOLUTION NO. 04-034 CONFIRMING THE APPOINTMENT OF NANCY GOHMAN TO THE POSITION OF DEPUTY CITY MANAGER WHEREAS, St. Louis Park City Charter section 5.04 grants authority to the City Manager to control and direct the administration of the City's affairs; and WHEREAS, City Code Section Sec. 2-91 grants authority to the City Manager to appoint a Deputy to act as City Manager in the Manager’s absence; and WHEREAS, changes in the organization necessitate the designation of a new Deputy City Manager; and WHEREAS, In addition to her duties as Human Resources Director, the City Manager has designated Nancy Gohman to act as Deputy City Manager in his absence. NOW THEREFORE BE IT RESOLVED by the City Council of the City of St. Louis Park that Human Resources Director, Nancy Gohman is hereby confirmed as Deputy City Manager. LET IT BE FURTHER RESOLVED that the effective date of the appointment is March 1, 2004. Reviewed for Administration: Adopted by the City Council March 1, 2004 City Manager Mayor Attest: City Clerk St. Louis Park City Council Meeting 030104 - 8c - Local 49 Union Agreement 2004-200 Page 1 of 3 8c. Resolution approving Local 49 Union agreement for 1/1/2004 - 12/31/2005 Approval of 2-year agreement with Local 49 Maintenance settling the City and Union for 2004 & 2005. Recommended Action: Motion to adopt a resolution approving a Labor Agreement between the City and International Union of Operating Engineers (IUOE), Local 49 AFL-CIO, establishing terms and conditions of employment for two years: 1/1/04 – 12/31/05. Background: We are pleased to bring you a 2 year agreement with our Local 49 maintenance union. This agreement was reached after many sessions and hours of negotiation. The previous contract was for 3 years and it expired on 12/31/03. The union understands that the city is in difficult financial times. Members are concerned about many issues: wages and insurance/rising healthcare costs, lay-off, seasonal employment, pension, and costs of healthcare for retirees. We were pleased with the open discussion with the union. After many hours of work in negotiations, we reached a tentative agreement with changes to the contract as follows. • 2 year agreement • 2004 wage increase 2% January 1, 1% July 1 • 2004 increase in employer contribution $45/mo. ($550/mo in 2003, to $595/mo. in 2004) • 2005 wage increase 3% January 1, 2005 • 2005 increase in employer contribution same as other non-exempt employees, Comment: The increases recommended for 2004 wage and insurance are same given to non-union employees for wages and employer contribution. The 2005 settlement is consistent with our other settled contract. • Convert 2 individuals remaining on sick/vacation program to flex leave on 4/1/04. • Eliminate funeral leave program and add 1 additional day to flex leave program to compensate for loss of funeral leave effective 4/1/04. Employees will receive a 24 hour funeral leave bank for this conversion. The funeral leave bank cannot be cashed out upon separation. Comment: The elimination of funeral leave is consistent with other employee groups on the flex leave program. Since the contract was closed for 3 years, we are now bringing this group up to the same status on leave as other employees on flex leave. • Eliminate restriction of 40 hours maximum use of compensatory time per year. Comment: Language changed will make this group consistent with other employee groups with a maximum cap allowed of 40 hours on the books for compensatory time. • Market adjustment in 2005 for Field Supervisor, add $1.50 per hour to the base wage. Comment: We currently have 4 Field Supervisors in this bargaining unit. After review of the market, we found that the position was falling behind in comparison and an additional market adjustment was needed. St. Louis Park City Council Meeting 030104 - 8c - Local 49 Union Agreement 2004-200 Page 2 of 3 • Increase scheduled on-call supplemental pay from $180 to $220 for each week the assignment is scheduled effective 1/1/04. • Delete equipment no longer owned by the city from the equipment list such as: chip spreader, snow loader, loader mounted snow blower and paver trailer. • Change method of tracking the amount of time temporary/seasonal employees may work from calendar year to 365 day period. • The City and Union agree to continue to work on a VEBA or Health reimbursement arrangement at no cost to the City. • The City will agree to administer contributions to Local 49 Central Pension Fund, at no additional cost to the City if agreed on by our Union members. The proposed contract is on file with the City Clerk. More detail is available upon request. Recommendation: It is recommended that the City Council adopt the attached resolution approving a Labor Agreement between the City and International Union of Operating Engineers (IUOE) Local 49, AFL-CIO, establishing terms and conditions of employment for the duration of 1/1/04 – 1/31/05 Attachments: Resolution Prepared by: Nancy Gohman, Human Resources Director Approved by: Tom Harmening, City Manager St. Louis Park City Council Meeting 030104 - 8c - Local 49 Union Agreement 2004-200 Page 3 of 3 RESOLUTION NO. 04-035 RESOLUTION APPROVING THE LABOR AGREEMENT BETWEEN THE CITY OF ST. LOUIS PARK AND INTERNATIONAL UNION OF OPERATING ENGINEERS (IUOE) LOCAL NO. 49, AFL-CIO JANUARY 1, 2004–DECEMBER 31, 2005 WHEREAS, the City and the Union have reached a negotiated settlement covering the terms and conditions of a Labor Agreement as permitted by the State of Minnesota Public Employees Labor Relations Act, and WHEREAS, the City Council may enter into such agreements as authorized by its Charter; now therefore, BE IT RESOLVED by the City Council of the City of St. Louis Park that the Mayor and City Manager are authorized to execute a Collective Bargaining Agreement, City Contract # between the City of St. Louis Park and Law International Union of Operating Engineers (IUOE) Local No. 49, AFL-CIO effective January 1, 2004 – December 31, 2005. Reviewed for Administration: Adopted by the City Council March 1, 2004 City Manager Mayor Attest: City Clerk St. Louis Park City Council Meeting 030104 - 8d - Dispatch Consolidation Phase II Page 1 of 6 8d. Phase II Dispatch Consolidation Study Recommended Action: Motion to approve entering into a contract for professional services with PSC Alliance for the Phase II Dispatch Consolidation Study contingent upon receipt of written commitments from the three other participating communities. Background: During a study session on 02/02/04, staff presented the final report on PSAP consolidation completed by PSC Alliance, Inc. This report was a comprehensive, high-level analysis of the potential for sharing dispatching services in Hennepin County. Staff proposed the City enter into a contract with PSC Alliance, Inc. along with Richfield, Golden Valley and Brooklyn Center as a means to further examine the feasibility of consolidation (Phase II Study) among these participants. The City Council expressed support of such an action. Staff from the four “Phase II” cities met on February 19, 2004 and confirmed their intent to go forward with a detailed study of dispatch consolidation, to be completed by approximately May, 2004. A scope of work was reviewed and it was agreed that each city would pay an equal portion of the cost of the study. The Phase II Study will focus on the following areas (see attached scope of work for a more detailed description): • Policy • Operational • Governance • Service • Site • Staff, Training, & Workload • Technical • Financial As was done with the initial study, St. Louis Park staff are proposing that the City execute a contract with PSC Alliance, and invoice the other cities for their share. Each city agreed to provide a written statement of participation as soon as their respective council schedules permit. The cost of the study is $66,000. St. Louis Parks share would be $16,500. Recommendation: Recommend the council authorize staff to contract with PSC Alliance on behalf of the four communities upon receipt of written intent to participate. Attachments: Revised Draft Statement of Work – Phase II Study Letter from PSC Alliance outlining cost of the study Prepared by: John D. Luse, Chief of Police Approved by: Tom Harmening, City Manager St. Louis Park City Council Meeting 030104 - 8d - Dispatch Consolidation Phase II Page 2 of 6 Suggested Statement of Work Phase 2 – Dispatch Consolidation Analysis PSC Alliance Inc. has submitted a feasibility report setting forth Phase 1 planning considerations for public safety dispatch consolidation in Hennepin County. This document sets forth a proposed Statement of Work (SOW) to develop an implementation plan for dispatch consolidation. Hereinafter in this document these work tasks are described as the Phase 2 – SOW. Participating beneficiaries of the plan would be the cities of: • Brooklyn Center • Golden Valley • Richfield • Saint Louis Park This Phase 2 SOW will take the project to the milestone of final community approval at the staff level for dispatch consolidation implementation. High Level Scope Areas of Phase 2 exploration will include additional detailed analysis of the following factors: • Policy: We will develop recommendations for the specific policies, missions, service goals, and service delivery oversight expectations for consideration at the community and department level. • Operational: We will develop recommendations for the specific operational, logistical, and procedural issues and will help facilitate reconciliation to implement four community dispatch consolidation. • Governance Provide an analysis of governance options and recommend a governance model that would meet individual participant needs • Service Identify the key areas of service delivery currently provided to internal and external customers and show how the current levels could be maintained and/or improved in a consolidated center. • Site: We concur with the group’s desire to explore site options for a consolidated dispatch center. These site options are: the three existing police facilities, new construction or relocating to another existing building. • Staff, Training, & Workload: We will develop recommendations after further analysis of work load factors within each community. The intended use of this information will be to establish future PSAP staffing levels and required staff training. • Technical: We will assess and recommend the appropriate technical facilities (radio, telephone, computer, etc) needed to support consolidated PSAP operation for the participants. • Financial: We will develop budget documents and cost apportionment formulae. Our financial analysis will include a capital budget to undertake conversion to consolidated status, a suggested first year’s operating budget, and an operating budget for years 2 and 3. We will prepare summary financial data that compares these projected operating budgets with operating cost data for calendar 2003. Cost projections will be adjusted for inflation. Our work will “drill down” into each of these factors to investigate the specific tasks described below. Our deliverable will be a multi-agency dispatch consolidation implementation plan. The plan will be intended for St. Louis Park City Council Meeting 030104 - 8d - Dispatch Consolidation Phase II Page 3 of 6 local review and approval by each participating community and will include both short term (less than 5 years) and longer term (6-8 year) planning considerations. Presentation of deliverable(s) will include the following: a) A draft report with a comment period of ten (10) business days b) A final report c) Presentation of final report to the project steering committee d) Presentation to the city council of each of the four cities Specific Work Tasks PSC Alliance Inc. proposes to undertake the following work tasks to complete the Phase 2 SOW: Policy 1. Evaluate and recommend workload factors. 2. Establish expansion possibilities to position the consolidated entity to receive other cities in both the short and longer term. 3. Recommend the organizational, management, and process structures necessary to address ongoing service delivery issues. 4. Identify the action steps, recommended task assignments, and procurement options for a specific implementation plan. 5. Establish timelines and schedules. Governance 6. Identify a governance models that have been used successfully in similar consolidated dispatch centers and recommend a model that, based on the information gathered, would best meet the needs identified by the participants. Service Levels 7. Identify the service impact members that each community may notice in a consolidated effort. 8. Determine the specific steps which need to be taken to maintain or enhance level of service currently provided in each city. 9. Meet with chief or delegate for both police and fire of each agency to explore level of service desired as part of new consolidated center 10. Provide a comparison of how consolidated service levels would compare with existing service levels of each community and Hennepin County Sheriff’s Communications. Operational 11. Observe current PSAP operations to understand current mission and how currently executed. (Four hours of a shift) Recommend areas to be modeled or improved upon. 12. In each agency, ride along in squad on patrol to see overall mission of the police agency and how dispatch currently serves field staff. Recommend areas to be modeled or improved upon as they relate to dispatch operations. 13. Monitor police and fire radio traffic for various time frames to better understand dispatch/police/fire current operations. Staffing 14. Recommend staffing levels and service delivery options that impact personnel and operating costs. 15. Recommend recruitment and training policies. St. Louis Park City Council Meeting 030104 - 8d - Dispatch Consolidation Phase II Page 4 of 6 16. Recommend appropriate policies and procedures pertaining to staffing. Technical 17. Inventory current capital equipment and technical connections relating to voice and data communications. 18. Determine voice and data technology needed to satisfy political, operational and management objectives to operate the consolidated center. 19. Determine equipment to be redeployed, modified, or enhanced. 20. Meet with current external service providers (LOGIS, Qwest, MRB/Hennepin Sheriff’s Radio) to understand both existing equipment, connections, and fees as well as proposed at a consolidated location. 21. Identify the legacy radio equipment which will be required to effect MRB connections. 22. Identify what telephone and other external connections will be required at a consolidated center. 23. Determine how a catastrophic failure at the consolidated PSAP is prevented and also mitigated for immediate and long term backup. Establish backup facility and process recommendations. 24. Explore fire station alerting systems in place and determine how they fit into consolidated dispatching scenarios. 25. Establish suggested floor plans for three PSAP scenarios. 26. Identify the changes/additions to facilities/physical plant that would be needed in existing or new space to handle dispatching for four or more agencies. 27. Identify and recommend the connections to ancillary technical facilities such as the Metro Radio System, LOGIS, Qwest, and the State of Minnesota CJDN. 28. Identify the single points of failure that need to be addressed with contingency plans. 29. Resolve the building control/monitoring issues existing in current PSAPs. Financial 30. Identify line item non-labor operational costs in detail at each existing PSAP. Which costs would continue, which would move to a consolidated operation, and which would discontinue. 31. Determine costs for consolidated operations for both short term (up-front) and long term (recurring) operations. 32. Identify and recommend the existing technology “equity” which agencies may bring to a consolidated effort. 33. Develop a recommendation for a consolidated PSAP financial model. 34. Develop cost sharing formulae. 35. Update data spreadsheet to generate a cost scenario that includes all four of the cities. Cost Pending Cooperation We expect that officials will: 1. Assign a primary contact who has the authority to make decisions, answer questions, and provide general contact liaison with us on behalf of the project. This person should be able to provide the time necessary to fulfill the liaison role, volunteering suggestions, setting up local meetings, and clarifying our approach as necessary. **Heather Alex and Jay Henthorne would co-manage the project. 2. Keep us aware of any change in your intentions which could affect the implementation process. St. Louis Park City Council Meeting 030104 - 8d - Dispatch Consolidation Phase II Page 5 of 6 3. Provide copies of documentation pertinent to our prosecution of the work to include any past technical studies, equipment records, staff surveys, evaluations, and planning reports and permit us to contact your telephone, computer, and two-way maintenance contractor(s) on your behalf to secure information necessary to conduct the evaluation. 4. Inform us of known or anticipated obstacles to completing our tasks as contemplated. 5. Provide reasonable access to your facilities (to include meeting rooms as necessary), staff, and representatives as needed to prosecute tasks set out above. 6. You agree that local officials will facilitate our access to enter upon public and private land necessary to pursue our work. Further, if we request in writing, you will provide escort to PSC Alliance Inc. team members to required locations to observe opening of covers, removal of panels, or otherwise expose field conditions necessary for us to properly conduct our survey work. 7. Reasonably consider our recommendations in the execution of policy and contract award decisions. 8. We are not responsible for identifying the presence of and/or planning for designs associated with asbestos, PCBs, and other hazardous materials. 9. Contact liaison will coordinate timely local review and approval, correction, amendment of submittals and draft reports and forward consolidated comments from the City or partnering communities. 10. There is no requirement for short term recommendations for modification or improvement equipment or facilities not explicitly identified in the task statements above. Additional Work PSC Alliance Inc. anticipates that we will undertake the work set forth herein in cooperation with the senior staff of the affected departments and communities. We will be pleased to support local officials in other venues and with other interest groups but have not included that work in this Phase 2 SOW. For additional services and tasks our standard fee and expense schedule will apply (as set forth in the Phase 1 contract) unless other arrangements have been negotiated. St. Louis Park City Council Meeting 030104 - 8d - Dispatch Consolidation Phase II Page 6 of 6 St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 1 of 38 8e. Refunding of 1996 General Obligation Tax Increment Bonds This action will award the sale of $7,530,000 General Obligation Tax Increment Bonds. The proceeds of the bond sale will be placed in escrow until February 1, 2005. At that time they will be used to payoff the 1996 General Obligation Tax Increment Bonds. Recommended Action: Motion to approve resolution sale of refunding bonds and approve refunding escrow agreement. Background: In 1996, the City issued $9,570,000 in General Obligation Tax Increment Bonds. The proceeds of this bond issue were used to finance tax increment related projects as well as the Recreation Center Project. At this time, there is $7,550,000 in outstanding bonds. At the January 25, 2004 Council Study Session, Council expressed interest in refunding these bonds in order to generate an approximate present value savings of $500,000 over the term of the bonds. On February 2, 2004, Council set the sale date for the refunding bonds for March 1, 2004. The 1996 bonds are callable on February 1, 2005 and the bond proceeds of this refunding issue will be placed in an escrow account until that time. The bond term is 14 years and the payment of the bonds will continue to be made from a combination of tax increments from Excelsior Boulevard, Trunk Highway 7, and Oak Park Village tax increment districts, Park and Recreation, and the Permanent Improvement Revolving Fund. A draft resolution awarding the bond sale is included as an attachment. The bonds will be sold on March 1, 2004 through an open bid process. Due to this, the resolution cannot be completed until the sale is finalized. A final resolution will be presented at the Council meeting. In order to complete the bond refunding, it is necessary that the City and EDA agree to a tax increment pledge agreement. This pledge agreement states that tax increment revenues generated from the Excelsior Boulevard, Trunk Highway 7, and Oak Park Village tax increment districts will be used to repay this debt. Bond Rating: Analysts from Moody’s Investment Services are in the process of rating this bond issue. It is anticipated that the City will maintain the rating of Aa1. Recommendation: Motion to adopt resolution awarding the sale of bonds, approve refunding escrow agreement, and approve tax increment pledge agreement. Attachments: Resolution Refunding Escrow Agreement Tax Increment Pledge Agreement Prepared by: Jean D. McGann, Director of Finance Approved by: Tom Harmening, City Manager St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 2 of 38 Extract of Minutes of Meeting of the City Council of the City of St. Louis Park, Hennepin County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of St. Louis Park, Minnesota, was duly held in the City Hall in said City on March 1, 2004, commencing at 7:30 o'clock P.M. The following members were present: and the following were absent: * * * * * * * * * The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's approximately $7,555,000 General Obligation Tax Increment Refunding Bonds, Series 2004A. The City Manager presented a tabulation of the proposals that had been received in the manner specified in the Official Terms of Proposal for the Bonds. The proposals were as follows: St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 3 of 38 After due consideration of the proposals, Member ____________________ then introduced the following written resolution, the reading of which was dispensed with by unanimous consent and moved its adoption: In accordance with the official Terms of Proposal the following adjustments were made: Principal Amount: Maturities: Minimum Purchase Price: St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 4 of 38 RESOLUTION NO. 04-036 A RESOLUTION AWARDING THE SALE OF $7,530,000 GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2004A; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; PROVIDING FOR THEIR PAYMENT; PROVIDING FOR THE ESCROWING AND INVESTMENT OF THE PROCEEDS THEREOF; AND PROVIDING FOR THE REDEMPTION OF BONDS REFUNDED THEREBY. BE IT RESOLVED By the City Council of the City of St. Louis Park, Hennepin County, Minnesota (City) as follows: Section 1. Sale of Bonds. 1.01. It is hereby determined that: (a) the City has duly established the following project areas and tax increment districts: (i) Excelsior Boulevard Redevelopment Project; (ii) Oak Park Village Redevelopment Project; and (iii) the Highway 7 Development District (collectively referred to herein as the "Districts") pursuant to Minnesota Statutes, Sections 469.001 through 469.047, Chapter 472A, and Sections 469.174 to 469.179 and predecessor statutes (Act); (b) the control, authority and operation of the Districts were transferred to the St. Louis Park Economic Development Authority (Authority) by Resolution No. 88-134 of the City, pursuant to Minnesota Statutes, Section 469.094; and (c) by Resolution No. 90-4 of the Authority and Resolution No. 90-29 of the City, the geographical areas of the project areas associated with the Districts were expanded and joined (such expanded coterminous area is referred to herein as the “Project Area”); and (d) the City is authorized by Section 469.178 of the TIF Act to issue and sell its general obligations to pay all or a portion of the public development and redevelopment costs (Costs) related to the Project Area as identified in the redevelopment plan and program and tax increment financing plan (Plans) for the Districts; (e) the City is authorized by the provisions of Minnesota Statutes, Chapter 475 (Act) and Section 475.67, Subdivision 13 of the Act to issue and sell its general obligation bonds to refund outstanding bonds when determined by the City Council to be necessary and desirable; (g) it is necessary and desirable to reduce debt service costs that the City issue $7,650,000 General Obligation Tax Increment Refunding Bonds, Series 2004A (Bonds) to refund certain outstanding general obligations of the City refund in advance of maturity and at their redemption date, the proceeds of which have been used to pay certain costs in the Project Area; St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 5 of 38 (h) the outstanding bonds to be refunded (Refunded Bonds) consist of the $9,570,000 General Obligation Tax Increment Bonds, Series 1996 dated December 1, 1996, of which $7,295,000 in principal amount is currently outstanding and is callable on February 1, 2005. (i) the Mayor and City Manager are authorized and directed to execute a Tax Increment Pledge Agreement between the City and the Authority (Pledge Agreement) in substantially the form on file in City Hall, pursuant to which the Authority pledges certain Available Tax Increment (as defined in the Pledge Agreement) to pay principal of and interest on the Bonds. 1.02. The proposal of ________________________________________ (Purchaser) to purchase $_______________ General Obligation Tax Increment Refunding Bonds , Series 2004A (Bonds) of the City described in the Official Terms of Proposal thereof is determined to be a reasonable offer and is accepted, the proposal being to purchase the Bonds at a price of $____________ plus accrued interest to date of delivery, for Bonds bearing interest as follows: Year of Maturity Interest Rate Year of Maturity Interest Rate 2006 2013 2007 2014 2008 2015 2009 2016 2010 2017 2011 2018 2012 True interest cost: _________ 1.03. The sum of $___________ being the amount bid proposed by the Purchaser in excess of $________________ is credited to the Escrow Account hereinafter created, or designated to pay costs of issuance of the Bonds, as may be recommended by the financial advisors to the City. The City Manager is directed to retain the good faith check of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers forthwith. The Mayor and City Manager are directed to execute a contract with the Purchaser on behalf of the City. 1.04. The City will forthwith issue and sell the Bonds pursuant to Minnesota Statutes, Chapter 475 (Act) in the total principal amount of $_______________, originally dated April 7, 2004, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward, bearing interest as above set forth, and maturing serially on February 1 in the years and amounts as follows: St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 6 of 38 Year Amount Year Amount 2006 2013 2007 2014 2008 2015 2009 2016 2010 2017 2011 2018 2012 1.05. Optional Redemption. The City may elect on February 1, 2013, and on any day thereafter to prepay Bonds due on or after February 1, 2014. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 8 hereof) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. Section 2. Registration and Payment. 2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing February 1, 2005, to the registered owners of record as of the close of business on the fifteenth day of the immediately preceding month, whether or not that day is a business day. 2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 7 of 38 as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes, and payments so made to a registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for any Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar an appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by publication or by mail to any registered owner, or St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 8 of 38 any defect therein, will not affect the validity of any proceeding for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 2.04. Appointment of Initial Registrar. The City appoints the City Director of Finance, as the initial Registrar. The City may on any date appoint a successor entity to serve as Registrar, in which event the remainder of this Section 2.04 applies. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Finance Director must transmit to the Registrar moneys sufficient for the payment of all principal and interest then due. 2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the City Finance Director and executed on behalf of the City by the signatures of the Mayor and the City Manager provided that those signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of a Bond, that signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Finance Director will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3. Form of Bond. 3.01. The Bonds will be printed or typewritten in substantially the following form: St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 9 of 38 No. R-____ UNITED STATES OF AMERICA $__________ STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF ST. LOUIS PARK GENERAL OBLIGATION TAX INCREMENT REFUNDING BOND, SERIES 2004A Date of Rate Maturity Original Issue CUSIP April 7, 2004 Registered Owner: Cede & Co. The City of St. Louis Park, Minnesota, a duly organized and existing municipal corporation in Hennepin County, Minnesota (City), acknowledges itself to be indebted and for value received promises to pay to the Registered Owner specified above or registered assigns, the principal sum of $__________ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable February 1 and August 1 in each year, commencing February 1, 2005, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by the City Director of Finance, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on February 1, 2013, and on any day thereafter to prepay Bonds due on or after February 1, 2014. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify Depository Trust Company (DTC) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 10 of 38 The City Council has designated the issue of Bonds of which this Bond forms a part as "qualified tax exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the Code) relating to disallowance of interest expense for financial institutions and within the $10 million limit allowed by the Code for the calendar year of issue. This Bond is one of an issue in the aggregate principal amount of $_________ all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on March 1, 2004 (the Resolution), for the purpose of providing money to refund in advance of maturity and on the Redemption Date, as defined in the Resolution, a portion of certain general obligation bonds of the City, pursuant to and in full conformity with the home rule charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 475.67, Subdivision 13 and 469.178. The interest hereon is payable until the Redemption Date, primarily out of the Escrow Account and Debt Service Account in the City's Refunding Bonds, Series 2004A Debt Service Fund and after the Redemption Date from tax increments resulting from increases in the taxable value of real property in certain tax increment financing districts in the City, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency in tax increments pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing, upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter of the City and the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation of indebtedness. St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 11 of 38 This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of St. Louis Park, Hennepin County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. Dated: CITY OF ST. LOUIS PARK, MINNESOTA (Facsimile) (Facsimile) City Manager Mayor _________________ The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT _________ Custodian _________ in common (Cust) (Minor) TEN ENT -- as tenants under Uniform Gifts or by entireties Transfers to Minors JT TEN -- as joint tenants with right of survivorship and Act . . . . . . . . . . . . not as tenants in common (State) Additional abbreviations may also be used though not in the above list. ______________________________________ ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto ________________________________________ the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint _______________ attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 12 of 38 Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”), the New York Stock Exchange, Inc. Medallion Signatures Program (“MSP”) or other such “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Bond Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Signature of Date of Registration Registered Owner Officer of Registrar St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 13 of 38 Cede & Co. ____________________ Federal ID #13-2555119 ______________________ 3.02. The City Manager is authorized and directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and cause the opinion to be printed on or accompany each Bond. Section 4. Bonds; Security; Escrow. 4.01. Funds and Accounts. For the convenience and proper administration of the moneys to be borrowed and repaid on the Bonds and the Refunded Bonds (as defined in the resolution providing for the issuance and sale of the Bonds), and to provide adequate and specific security for the Purchaser and holders from time to time of the Bonds and Refunded Bonds, there is hereby created a special fund to be designated the Refunding Bonds, Series 2004A Debt Service Fund (the Fund) to be administered and maintained by the City Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Fund will be maintained in the manner herein specified until all of the Refunded Bonds have been paid and until all of the Bonds and the interest thereon will have been fully paid. There will be maintained in the Fund two separate accounts, to be designated the Escrow Account and Debt Service Account. (a) Escrow Account. The Escrow Account will be maintained as an Escrow Account (Escrow Account) with U.S. Bank National Association in St. Paul, Minnesota, which is a suitable financial institution within the State, whose deposits are insured by the Federal Deposit Insurance Corporation, whose combined capital and surplus is not less than $500,000 and said financial institution is hereby designated escrow agent (Escrow Agent) for the Escrow Account. All proceeds of the sale of the Bonds will be received by the Escrow Agent and applied to fund the Escrow Account or to pay costs of issuing the Bonds. Proceeds of the Bonds not used to pay costs of issuance are hereby irrevocably pledged and appropriated to the Escrow Account, together with all investment earnings thereon. The Escrow Account will be invested in securities maturing or callable at the option of the holder on such dates and bearing interest at such rates as will be required to provide sufficient funds, together with any cash or other funds retained in the Escrow Account, to pay when due the interest to accrue on each Bond to and including February 1, 2005 (Redemption Date), and to pay when due on the Redemption Date the principal amount of each of the Refunded Bonds then outstanding. From the Escrow Account there will be paid (i) all interest paid on, or to be paid on, or to accrue on, the Bonds to and including the Redemption Date, and (ii) the principal of the Refunded Bonds due by reason of redemption on the Redemption Date. The Escrow Account will be irrevocably appropriated to the payment of the principal of and interest on the Bonds until the proceeds of the Bonds therein are applied to prepayment of the Refunded Bonds. The moneys in the Escrow Account will be used solely for the purposes herein set forth and for no other purpose, except that any surplus in the Escrow Account may be remitted to the City, all in accordance with the Escrow Agreement (hereafter defined) by and between the City and the Escrow Agent. Any moneys remitted to the City upon termination of the Escrow Agreement will be deposited in the Debt Service Account. St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 14 of 38 (b) Debt Service Account. To the Debt Service Account there is hereby pledged and irrevocably appropriated and there will be credited: (i) any balance remitted to the City upon the termination of the Escrow Agreement; (ii) any balance remaining on February 2, 2005, in the Debt Service Fund created by the City Council resolution authorizing the issuance and sale of the Refunded Bonds (Prior Resolution); (iii) any collections of all taxes hereafter levied for the payment of the Bonds and interest thereon; (iv) all investment earnings on funds in the Debt Service Account; (v) after the Redemption Date, all Available Tax Increment (as defined in the Pledge Agreement) received by the City from the Authority pursuant to the Pledge Agreement; (vi) accrued interest (if any) received upon delivery of the Bonds to the extent not required to fund the Escrow Account; and (vii) any and all other moneys which are properly available and are appropriated by the City Council to the Debt Service Account. The amount of any surplus remaining in the Debt Service Account when the Bonds and interest thereon are paid will be used as provided in Section 475.61, Subdivision 4 of the Act. 4.02. Findings. It is hereby found and determined that based upon information presently available from the City's financial advisers, the issuance of the Bonds will result in a reduction of debt service cost to the City on the Refunded Bonds, such that The present value of such debt service or interest cost savings (Reduction) is __________% of the debt service on the Refunded Bonds. The Reduction, after the inclusion of all authorized expenses of refunding in the computation of the effective interest rate on the Bonds, is adequate to authorize the issuance of the Bonds as provided by Minnesota Statutes, Section 475.67, Subdivisions 12 and 13. 4.03. The moneys in the Debt Service Account will be used solely to pay the principal of and interest on the Bonds or any other bonds hereafter issued and made payable from the Fund. No portion of the proceeds of the Bonds will be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (i) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued, and (ii) in addition to the above, in an amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To this effect, any proceeds of the Bonds any sums from time to time held in the Fund (or any other City account which will be used to pay principal and interest to become due on the Bonds) in excess of amounts which under the applicable federal arbitrage regulations may be invested without regard as to yield will not be invested at a yield in excess of the applicable yield restrictions imposed by the arbitrage regulations on such investments after taking into account any applicable temporary periods or minor portion made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Fund will not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be federally guaranteed within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the Code). 4.04. General Obligation Pledge. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City will be and are hereby irrevocably pledged. If the balance in the Escrow Account or Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency will be promptly paid out of monies in the general fund of the City which are available for such purpose, and such general fund may be reimbursed with or without interest from the Escrow Account or Debt Service Account when a sufficient balance is available therein. St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 15 of 38 4.05. It is determined that estimated collection of available tax increment for the payment of principal and interest on the Bonds after the Redemption Date will produce at least five percent in excess of the amount needed to meet when due, the principal and interest payments on the Bonds and that no tax levy is needed at this time. 4.06. Filing. The City Manager is authorized and directed to file a certified copy of this resolution with the Taxpayer Services Division Manager of Hennepin County and to obtain the certificate required by Section 475.63 of the Act. Section 5. Refunding; Findings; Redemption of Refunded Bonds. 5.01. As of the date of delivery of and payment for the Bonds the proceeds of the Bonds, in the amount of $____________ plus accrued interest on the Bonds less necessary expenses of the issuance of the Bonds (Proceeds), together with other funds (Funds) in the amount of $________________ are hereby pledged and appropriated and will be deposited in the Escrow Account. 5.02. It is hereby found and determined that the Proceeds and Funds available and appropriated to the Escrow Account will be sufficient, together with the permitted earnings on the investment of the Escrow Account, to pay at maturity or redemption all of the principal of and redemption premium (if any) on the Refunded Bonds. 5.03. Securities purchased from the monies in the Escrow Account will be limited to securities specified in Section 475.67, Subdivision 8 of the Act. Ehlers & Associates, Inc., as agent for the City of St. Louis Park is hereby authorized and directed to purchase for and on behalf of the City and in its name, appropriate securities to fund the Escrow Account. Upon the issuance and delivery of the Bonds, the securities so purchased will be deposited with the Escrow Agent and held pursuant to the terms of the Escrow Agreement and the Resolution. 5.04. The Refunded Bonds maturing on February 1, 2006 and thereafter will be redeemed and prepaid on the Redemption Date. The Refunded Bonds will be redeemed and prepaid in accordance with their terms and in accordance with the terms and conditions set forth in the form of Notice of Call for Redemption attached hereto as Attachment A which terms and conditions are hereby approved and incorporated herein by reference. The Registrar for the Refunded Bonds is authorized and directed to send a copy of the Notice of Redemption to each registered holder of the Refunded Bonds. 5.05. Escrow Agreement. On or prior to the delivery of the Refunding Bonds, the Mayor and the Manager are hereby authorized and directed to execute on behalf of the City an escrow agreement (Escrow Agreement) with the Escrow Agent in substantially the form now on file with the Finance Director. All essential terms and conditions of the Escrow Agreement including payment by the City of reasonable charges for the services of the Escrow Agent, are hereby approved and adopted and made a part of this resolution, and the City covenants that it will promptly enforce all provisions thereof in the event of default thereunder by the Escrow Agent. St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 16 of 38 Section 6. Authentication of Transcript. 6.01. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished, will be deemed representations of the City as to the facts stated therein. 6.02. The Mayor and City Manager are hereby authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. 6.03. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses (other than amounts payable to Kennedy & Graven, Chartered as Bond Counsel) to U.S. Trust Company, Minneapolis, Minnesota on the closing date for further distribution as directed by the City's financial adviser, Ehlers & Associates, Inc. Section 7. Tax Covenant. 7.01. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the Code), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. 7.02. The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds. 7.03. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 7.04. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 17 of 38 (b) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds, that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 2004 will not exceed $10,000,000; and (d) not more than $10,000,000 of obligations issued by the City during calendar year 2004 have been designated for purposes of Section 265(b)(3) of the Code. 7.05. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. Section 8. Book-Entry System; Limited Obligation of City. 8.01. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon initial issuance, the ownership of each such Bond will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns (DTC). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC. 8.02. With respect to Bonds registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (Participants) or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Bond Registrar), of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, or interest on the Bonds. The City, the Bond Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Bond Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Bond Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Bond Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Manager of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 18 of 38 new nominee of DTC; and upon receipt of such a notice, the City Manager will promptly deliver a copy of the same to the Bond Registrar and Paying Agent. 8.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (Representation Letter) which will govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Bond Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation letter with respect to the Bond Registrar and Paying Agent, respectively, to be complied with at all times. 8.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interest, in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Bond Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 8.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in the Representation Letter. Section 9. Continuing Disclosure. 9.01. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate will not be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. 9.02. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. Section 10. Defeasance. When all Bonds and all interest thereon, have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 19 of 38 depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The motion for the adoption of the foregoing resolution was duly seconded by Member _________________________, and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 20 of 38 STATE OF MINNESOTA ) ) COUNTY OF HENNEPIN ) SS. ) CITY OF ST. LOUIS PARK ) I, the undersigned, being the duly qualified and acting City Manager of the City of St. Louis Park, Hennepin County, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on March 1, 2004 with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of $______________ General Obligation Tax Increment Refunding Bonds, Series 2004A of the City. WITNESS My hand officially as such City Manager and the corporate seal of the City this ______ day of _______________, 2004. City Manager St. Louis Park, Minnesota (SEAL) St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 21 of 38 STATE OF MINNESOTA TAXPAYER SERVICES DIVISION MANAGER’S CERTIFICATE AS TO COUNTY OF HENNEPIN REGISTRATION WHERE NO AD VALOREM TAX LEVY I, the undersigned Taxpayer Services Division Manager of Hennepin County, Minnesota, hereby certify that a resolution adopted by the City Council of the City of St. Louis Park, Minnesota, on March 1, 2004, relating to General Obligation Tax Increment Refunding Bonds, Series 2004A, in the amount of $_______________, dated April 7, 2004, has been filed in my office and said obligations have been registered on the register of obligations in my office. WITNESS My hand and official seal this ____ day of ____________, 2004. _____________________________ Taxpayer Services Division Manager Hennepin County, Minnesota (SEAL) By___________________________ Deputy St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 22 of 38 ATTACHMENT A NOTICE OF CALL FOR REDEMPTION $9,570,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1996 CITY OF ST. LOUIS PARK HENNEPIN COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that, by order of the City Council of the City of St. Louis Park, Hennepin County, Minnesota, there have been called for redemption and prepayment on February 1, 2005 all outstanding bonds of the City designated as General Obligation Tax Increment Bonds, Series 1996, dated December 1, 1996, having stated maturity dates of December 1 in the years 2006 through 2018, both inclusive, totaling $7,295,000 in principal amount, and with the following CUSIP numbers: Year of Maturity CUSIP 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 The bonds are being called at a price of par plus accrued interest to February 1, 2005, on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for payment at the office of the City Finance Director, St. Louis Park, Minnesota, on or before February 1, 2005. Importance Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of 2001, federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the time the payment by the redeeming institutions if they are not provided with your social security number or federal employer identification number, properly certified. This requirement is fulfilled by submitting a W-9 Form, which may be obtained at a bank or other financial institution. St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 23 of 38 The Registrar will not be responsible for the selection or use of the CUSIP number, nor is any representation made as to the correctness indicated in the Redemption Notice or on any Bond. It is included solely for convenience of the Holders. Dated: March 1, 2004. BY ORDER OF THE CITY COUNCIL By /s/ Thomas Harmening City Manager City of St. Louis Park, Minnesota St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 24 of 38 REFUNDING ESCROW AGREEMENT General Obligation Tax Increment Refunding Bonds, Series 1996 THIS AGREEMENT, made pursuant to Minnesota Statutes, Section 475.67, Subdivision 13 (Act) and executed by and between the City of St. Louis Park, Hennepin County, Minnesota (City), and U.S. Bank National Association, St. Paul, Minnesota, a banking corporation whose deposits are insured by the Federal Deposit Insurance Corporation and whose capital and surplus is not less than $500,000 (Escrow Agent): WITNESSETH: That the parties hereto recite and, in consideration of the mutual covenants contained herein, covenant and agree as follows: 1. The City, in accordance with a resolution adopted by its governing body on March 1, 2004 "Resolution Awarding the Sale of $_______________ General Obligation Tax Increment Refunding Bonds, Series 2004A; Fixing Their Form and Specifications; Directing Their Execution and Delivery; Providing for Their Payment; Providing for the Escrowing and Investment of the Proceeds Thereof; and Providing for the Redemption of Bonds Refunded Thereby" (Resolution), a certified copy of the latter of which has been filed with the Escrow Agent, has provided for the refunding of certain outstanding general obligation bonds (Refunded Bonds) of the City, described in said Resolution, by the issuance and sale of refunding obligations, designated as "General Obligation Tax Increment Refunding Bonds, Series 2004A" (Refunding Bonds). 2. The City has also, in accordance with the Resolution, issued and sold the Refunding Bonds in the principal amount of $_______________, and has simultaneously invested the proceeds of the Refunding Bonds together with other funds of the City in the amount of $________________, (i) in the amount of $_________in securities which are general obligations of the United States, securities whose principal and interest payments are guaranteed by the United States, and securities issued by agencies of the United States (collectively, the Federal Securities), as described in the schedule which is attached hereto, marked Exhibit A and made a part hereof, (ii) in the amount of $_________as an initial cash deposit, and (iii) in the amount of $_________to be applied by Escrow Agent to payment of costs of issuance as specified in paragraph 3 hereof and has irrevocably deposited all such securities with the Escrow Agent on the date of this Agreement. It is understood and agreed that the dates and amounts of payments of principal and interest due on the securities so deposited are as indicated in Exhibit A, and that the principal and interest payments due on such securities together with the initial cash deposit are such as to provide the funds required to pay all interest payable on the Refunding Bonds to the date on which any of the Refunded Bonds have been directed to be prepaid, as stated in the Resolution and to pay the redemption price of the Refunded Bonds on such date. The Refunded Bonds are the following: a) $9,570,000 General Obligation Tax Increment Bonds, Series 1996, dated December 1, 1996, of the City, of which $7,295,000 in principal amount is subject to redemption and prepayment on February 1, 2005. 3. The Escrow Agent acknowledges receipt of the securities described in paragraph 2 hereof and agrees that it will hold such securities in a special escrow account (Escrow Account) created by the St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 25 of 38 Resolutions in the name of the City, and will collect and receive on behalf of the City all payments of principal and interest on such securities and will remit from the Escrow Account (i) to the paying agent (Paying Agent) for the Refunding Bonds the funds required from time to time for the payment of interest on the Refunding Bonds to the date of the redemption of the Refunded Bonds which is February 1, 2005 (Redemption Date); and (ii) to the Paying Agent for the Refunded Bonds the funds needed for the redemption and prepayment of the outstanding principal amount of the Refunded Bonds on the Redemption Date. After provision for payment of all remaining Refunded Bonds, the Escrow Agent will remit any remaining funds in the Escrow Account to the City. Of the amounts deposited with the Escrow Agent, the sum of $_____________ shall be used by the Escrow Agent for the payment and disbursement of the costs of issuance of the Refunding Bonds and payments to the City as set forth in Exhibit B attached hereto. 4. In order to insure continuing compliance with the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder (collectively the Code), the Escrow Agent agrees that it will not reinvest any cash received in payment of the principal of and interest on the Federal Securities held in the Escrow Account. This prohibition on reinvestment shall continue unless and until an opinion is received by Escrow Agent from nationally recognized bond counsel that reinvestments, as specified in said opinion, may be made in a manner consistent with the Code. Reinvestment, if any, of amounts in the Escrow Account made pursuant to this paragraph may be made only in direct obligations of the United States of America which mature prior to the next date on which either principal or interest on the Refunded Bonds is payable. 5. Escrow Agent expressly waives any lien upon or claim against the moneys and investments in the Escrow Account. 6. If at any time it shall appear to the Escrow Agent that the money in the Escrow Account allocable for such use hereunder will not be sufficient to make any interest payment due to the holders of any of the Refunding Bonds, or principal payment due to the holders of any of the Refunded Bonds, the Escrow Agent shall immediately notify the City. The City thereupon shall forthwith deposit in Escrow Account from funds on hand and legally available to it such additional funds as may be required to meet fully the amount to become due and payable. The City acknowledges its obligation to levy ad valorem taxes on all taxable property in the City to the extent required to produce moneys necessary for this purpose. The City and Escrow Agent acknowledge receipt of a verification report from _______________________________, certified public accountants, dated _________________, 20__, to the effect that such cash and securities are sufficient to comply with the requirements of the Act. 7. The City will not repeal or amend the Resolution which calls the Refunded Bonds for redemption on their Redemption Dates. The Escrow Agent shall cause the Notice of Call for redemption attached hereto as Exhibit C to be mailed not less than 60 days prior to the Redemption Date to the paying agent for the Refunded Bonds for the purpose of giving notice not less than 30 days prior to the Redemption Date to the registered owners of the Refunded Bonds to be redeemed, at their addresses appearing in the bond register and also to the bank at which the principal and interest on the Refunded Bonds are then payable. 8. On or before February 1, 2005, the Escrow Agent shall submit to the City a report covering all money it shall have received and all payments it shall have made or caused to be made hereunder during the preceding twelve months. St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 26 of 38 9. It is recognized and agreed that title to the Federal Securities and cash, if any, held in the Escrow Account from time to time shall remain vested in the City but subject always to the prior charge and lien thereon of this Agreement and the use thereof required to be made by this Agreement. The Escrow Agent shall hold all such money and obligations in a special trust fund and account separate and wholly segregated from all other funds and securities of the Escrow Agent, and shall never commingle such money or securities with other money or securities; provided, however, that nothing herein contained shall be construed to require the Escrow Agent to keep the identical monies, or any part thereof, received for the Escrow Account on hand, but moneys of an equal amount (except to the extent such are represented by investments permitted under this Agreement) shall always be maintained on hand as funds held by the Escrow Agent as trustee, belonging to the City, and a special account shall at all times be maintained on the books of the Escrow Agent, together with such investments. In the event of the Escrow Agent's failure to account for any money or obligations held by it in the Escrow Account, such money and obligations shall be and remain the property of the City, and if for any reason such money or obligations cannot be identified, all other assets of the Escrow Agent shall be impressed with a trust for the amount thereof, and the City shall be entitled to a preferred claim upon such assets. It is understood and agreed that the responsibility of the Escrow Agent under this Agreement is limited to the safekeeping and segregation of the funds and securities deposited with it in the Escrow Account, and the collection of and accounting for the principal and interest payable with respect thereto. 10. This Agreement is made by the City for the benefit of the holders of the Refunded Bonds, and is not revocable by the City, and the investments and other funds deposited in the Escrow Account and all income therefrom have been irrevocably appropriated for the payment of the callable principal amount of the Refunded Bonds at the Redemption Date and interest on the Refunding Bonds to the Redemption Date in accordance with this Agreement. 11. This Agreement shall be binding upon and shall inure to the benefit of the City and the Escrow Agent and their respective successors and assigns. In addition, this Agreement shall constitute a third party beneficiary contract for the benefit of the holders of the Refunded Bonds and said third party beneficiaries shall be entitled to enforce performance and observance by the City and the Escrow Agent of the respective agreements and covenants herein contained as fully and completely as if said third party beneficiaries were parties hereto. Any bank into which the Escrow Agent may be merged or with which it may be consolidated or any bank resulting from any merger or consolidation to which it shall be a party or any bank to which it may sell or transfer all or substantially all of its corporate trust business shall, if the City approves, be the successor agent without the execution of any document or the performance of any further act. 12. The Escrow Agent may at any time resign and be discharged of its obligations hereunder by giving to the City Manager of the City written notice of such resignation not less than 60 days before the date when the same is to take effect and by publication of a copy of such notice in a daily or weekly Minnesota newspaper published in a Minnesota City of the first class, or its metropolitan area, which circulates throughout the state and furnishes financial news as part of its service, not less than 30 days prior to such date; provided that the Escrow Agent shall return to the County the pro rata portion of its fee which is allocable to the period of time commencing on the effective date of such resignation. Such resignation shall take effect upon the date specified in the notice, or upon the appointment and qualification of a successor prior to that date. In the event of such resignation, a successor shall promptly be appointed by the City, and the City Manager of the City shall immediately give written notice thereof to the predecessor escrow agent St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 27 of 38 and publish the notice in the manner described in this paragraph 12. If, in a proper case, no appointment of a successor agent is made within 45 days after the receipt by the City of notice of such resignation, the Escrow Agent or the holder of any Refunded Bond may apply to any court of competent jurisdiction to appoint a successor escrow agent, which appointment may be made by the Court after such notice, if any, as the Court may prescribe. Any successor escrow agent appointed hereunder shall execute, acknowledge and deliver to its predecessor escrow agent and to the City a written acceptance of such appointment, and shall thereupon without any further act, deed or conveyance become fully vested with all moneys, properties, duties and obligations of its predecessor, but the predecessor shall nevertheless pay over, transfer, assign and deliver all moneys, securities or other property held by it to the successor escrow agent, shall execute, acknowledge and deliver such instruments of conveyance and do such other things as may reasonably be required to vest and confirm more fully and certainly in the successor escrow agent all right, title and interest in and to any property held by it hereunder. Any bank into which the Escrow Agent may be merged or with which it may be consolidated or any bank resulting from any merger or consolidation to which it shall be a party or any bank to which it may sell or transfer all or substantially all of its corporate trust business shall, if the City approves, be the successor escrow agent without the execution of any document or the performance of any further act. 13. The Escrow Agent acknowledges receipt of the sum of $_____________ as its full compensation for its services to be performed under this Agreement. 14. The duties and obligations of the Agent shall be as prescribed by the provisions of this Agreement and the Agent shall not be liable hereunder except for failure to perform its duties and obligations as specifically set forth herein or to act in good faith in the performance thereof and no implied duties or obligations shall be incurred by the Agent other than those specified herein. 15. Any notice, authorization, request or demand required or permitted to be given in accordance with the terms of this Agreement shall be in writing and sent by registered or certified mail addressed: If to the City: 5005 Minnetonka Blvd. St. Louis Park, Minnesota 55416-2216 Attn: City Manager If to the Escrow Agent: U.S. Bank National Association Corporate Trust Operations 60 Livingston Avenue EP-MN-WS3C St. Paul, Minnesota 55107 Attn: Corporate Trust Department 16. The exhibits which are a part of this Agreement are as follows: Exhibit A Federal Securities Exhibit B Costs of Issuance Exhibit C Notice of Call for Redemption St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 28 of 38 IN WITNESS WHEREOF the parties hereto have caused this instrument to be duly executed by their duly authorized officers, in counterparts, each of which is deemed to be an original agreement, on this ___ day of ________________, 2004. St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 29 of 38 CITY OF ST. LOUIS PARK, MINNESOTA By Its Mayor (SEAL) Attest: By Its City Manager (SEAL) By Its Corporate Trust Officer St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 30 of 38 EXHIBIT A FEDERAL SECURITIES St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 31 of 38 EXHIBIT B COSTS OF ISSUANCE St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 32 of 38 EXHIBIT C NOTICE OF CALL FOR REDEMPTION $9,570,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1996 CITY OF ST. LOUIS PARK HENNEPIN COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that, by order of the City Council of the City of St. Louis Park, Hennepin County, Minnesota, there have been called for redemption and prepayment on February 1, 2005 all outstanding bonds of the City designated as General Obligation Tax Increment Bonds, Series 1996, dated December 1, 1996, having stated maturity dates of December 1 in the years 2006 through 2018, both inclusive, totaling $7,295,000 in principal amount, and with the following CUSIP numbers: Year of Maturity CUSIP 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 The bonds are being called at a price of par plus accrued interest to February 1, 2005, on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for payment at the office of the City Finance Director, St. Louis Park, Minnesota, on or before February 1, 2005. Importance Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of 2001, federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the time the payment by the redeeming institutions if they are not provided with your social security number or federal employer identification number, properly certified. This requirement is fulfilled by submitting a W-9 Form, which may be obtained at a bank or other financial institution. St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 33 of 38 The Registrar will not be responsible for the selection or use of the CUSIP number, nor is any representation made as to the correctness indicated in the Redemption Notice or on any Bond. It is included solely for convenience of the Holders. Dated: March 1, 2004. BY ORDER OF THE CITY COUNCIL By /s/ Thomas Harmening City Manager City of St. Louis Park, Minnesota St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 34 of 38 TAX INCREMENT PLEDGE AGREEMENT by and between CITY OF ST. LOUIS PARK, MINNESOTA and ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY THIS AGREEMENT is made and entered into on or as of the 1st day of March, 2004, by and between the City of St. Louis Park, Minnesota (the "City"), and St. Louis Park Economic Development Authority (the "EDA"). RECITALS A. The City has duly established the following project areas and tax increment districts: (i) Excelsior Boulevard Redevelopment Project; (ii) Oak Park Village Redevelopment Project; and (iii) the Highway 7 Development District (collectively referred to herein as the "Districts") pursuant to Minnesota Statutes, Sections 469.001 through 469.047, 472A, and Sections 469.174 to 469.179 and predecessor statutes (Act). B. The control, authority and operation of the Districts were transferred to the EDA by Resolution No. 88-134 of the City, pursuant to Minnesota Statutes, Section 469.094. C. By Resolution No. 90-4 of the EDA and Resolution No. 90-29 of the City, the geographical areas of the project areas associated with the Districts were expanded and joined (such expanded coterminous area is referred to herein as the “Project Area”). D. In order to finance certain costs of the Project Area, the City issued its $9,570,000 General Obligation Tax Increment Bonds, Series 1996, of the City, dated December 1, 1996 (the “Refunded Bonds”). E. In addition to the Refunded Bonds, there remain outstanding the following bonds issued by the City that are secured in whole or in part with tax increments from one or more of the Districts (referred to as the “Parity Bonds”): $7,000,000 General Obligation Tax Increment Bonds, Series 1997A (the “Series 1997A Bonds”) $4,290,000 General Obligation Tax Increment Bonds, Series 1998 (the “Series 1998 Bonds”) $7,650,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2001A (the “Series 2001A Bonds”) $6,135,000 General Obligation Tax Increment Refunding Bonds, Series 2002 (the “Series 2002 Bonds”) F. The tax increment attributable to the Districts (in accordance with the Act) received each year by the EDA from Hennepin County is referred to as the “Available Tax Increment.” St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 35 of 38 G. In connection with issuance of the each series of Parity Bonds, the City and EDA pledged Available Tax Increment (or portions thereof) to such bonds on at least a parity basis with any other obligations permitted by law. The pledge of Available Tax Increment to all the Parity Bonds is referred to as the “Parity Pledge.” H. Pursuant to authority conferred by Minnesota Statutes, Section 469.178, and Minnesota Statutes, Chapter 475, the City has agreed to crossover advance refund the outstanding Refunded Bonds through the issuance of general obligation bonds of the City in the principal amount of $7,555,000, designated the General Obligation Tax Increment Refunding Bonds, Series 2004A, and hereinafter referred to as the "Bonds.” I. The EDA has agreed to pledge Available Tax Increment to the City for the principal and interest on the Bonds from and after the redemption date on the Refunded Bonds, subject to the Parity Pledge to the Parity Bonds. J. Pursuant to Minnesota Statutes, Section 469.178, Subdivision 2, any agreement to pledge tax increment revenues must be made by written agreement by and between the EDA and the City and must be filed with the Taxpayer Services Division Manager of Hennepin County. NOW, THEREFORE, the City and the EDA mutually agree to the following: (1) The City will sell the Bonds in accordance with the City Council resolution approved on March 1, 2004 (the “Bond Resolution”). The Authority authorizes and directs the City to give notice of redemption of the outstanding principal amount of the Refunded Bonds on February 1, 2005 (the “Redemption Date”) in accordance with the Bond Resolution and the Escrow Agreement. (2) The proceeds from the sale of the bonds will be applied in accordance with the Bond Resolution. The Authority specifically authorizes and directs the City to deposit the proceeds of the Bonds (less any deductions specified in the Bond Resolution or the Escrow Agreement) in the Escrow Account maintained by the Escrow Agent, as such terms are defined in the Bond Resolution. Amounts in the Escrow Account are irrevocably pledged to pay principal of and interest on the Bonds until the Redemption Date, and to redeem the outstanding Refunded Bonds on the Redemption Date. (3) Prior to the Redemption Date, tax increment from the Excelsior Avenue Redevelopment Project remains pledged to pay principal of and interest on the Refunded Bonds in accordance with City Resolution No. 96-186. (4) Commencing on the Redemption Date, the EDA pledges Available Tax Increment to the pay principal of and interest on the Bonds, subject to the Parity Pledge and the terms of this Agreement. At least three (3) business days prior to each debt service payment date for the Bonds, there shall be transferred from the account for any of the Districts to the Debt Service Fund maintained by the City for the payment of the Bonds, an amount of Available Tax Increment which when taken together with taxes levied for such purposes in St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 36 of 38 accordance with the Bond Resolution and amounts already on deposit in such Debt Service Fund, is equal to the principal of and interest on the Bonds to become due on the subject payment date. Any Available Tax Increment in excess of 105% of the principal and interest due with respect to the Bonds on any payment date may be retained by the EDA in the account for the respective Districts and applied to any costs of the Project Area in accordance with law. The Finance Director may select the District or Districts from which Available Tax Increment will be drawn. (5) Without regard to anything in this Agreement to the contrary, Available Tax Increment may be pledged (at the EDA’s option on a parity, superior or subordinate basis) to pay principal of and interest on both the Bonds and any other obligations issued by the City, EDA or any other public body to finance public redevelopment costs paid or incurred by the EDA in the Project Area. The EDA reserves the right to release all or any portion of Available Tax Increment from the pledge under this Agreement (including without limitation the release of Available Tax Increment from any specific parcel within any District) to the extent permitted by law, provided that in no event may the EDA reduce the pledge such that Available Tax Increment is reasonably expected to pay less than 20 percent of principal and interest on the Bonds. (6) This Agreement supplements any prior agreements between the City and EDA with respect to pledges of Available Tax Increment. (7) An executed copy of this Agreement shall be filed with the Taxpayer Service Division Manager of County pursuant to the requirement contained in Minnesota Statutes, Section 469.178, Subdivision 2. IN WITNESS WHEREOF, the City and the EDA have caused this Agreement to be duly executed on their behalf and their seals to be hereunto affixed and such signatures and seals to be attested, as of the day and year first above written. ATTEST: CITY OF ST. LOUIS PARK, MINNESOTA _______________________________ By_____________________________ City Manager Mayor (SEAL) St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 37 of 38 ATTEST: ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY _______________________________ By______________________________ Executive Director President (SEAL) St. Louis Park City Council Meeting 030104 - 8e - Refunding of 1996 GO TIF Bonds Page 38 of 38 STATE OF MINNESOTA TAXPAYER SERVICES DIVISION MANAGER'S COUNTY OF HENNEPIN CERTIFICATE I, the undersigned Taxpayer Services Division Manager of Hennepin County, Minnesota, hereby certify that a Tax Increment Pledge Agreement by and between the City of St. Louis Park, Minnesota and the St. Louis Park Economic Development Authority dated as of March 1, 2004, relating to the City's $7,555,000 General Obligation Tax Increment Refunding Bonds, Series 2004A, has been filed in my office. WITNESS my hand and official seal this ___ day of March, 2004. ____________________________________ Taxpayer Services Division Manager (SEAL) Hennepin County, Minnesota By_________________________________ Deputy St. Louis Park City Council Meeting 030104 - 8f - Sidewalk Improvements Page 1 of 5 8f. City Engineer’s Report: 2004 Sidewalk Improvement Project, City Project No. 04-02 This report considers the construction of various sections of new sidewalk in accordance with the city’s sidewalk, trails, and bikeway plan Recommended Action: Motion to adopt the attached resolution to accept this report, establish the improvement project, and direct staff to sponsor informational meetings with affected property owners, for construction of various sections of concrete sidewalk. Background: Making the City a safer and more pedestrian-friendly community was one of the recommendations of Vision St. Louis Park. In response to this suggestion, a city-wide Sidewalk, Trail, Bikeway and Crossing Plan was developed. This Plan, which has been incorporated into the city’s Comprehensive Plan, identifies areas of the city in need of additional sidewalk, trails or bikeways; and, busy roadway or railroad crossings where pedestrian safety improvements can be made. Substantial public involvement and input was solicited during the development of this program. A Sidewalk and Trail Task Force, made up of concerned citizens, assisted in the development of the Plan. To understand residents’ concerns, a random opinion survey was conducted. As the Plan was developed, meetings were held with neighborhood associations, the City Council, Parks and Recreation Commission and other community groups. Two open houses were conducted as well as numerous publications and community newspaper articles. The final Plan was adopted on July 5, 2000. After completion of this project, nearly all of the original or added segments will have been constructed. Remaining segments are proposed to be constructed in conjunction with adjacent road projects or are near development areas where significant change is anticipated. Analysis: All of the segments included in this project were scheduled to be constructed in 2003. Funding for the 2003 sidewalk and trail segments was anticipated to come from State Aid funds for those segments along State Aid-designated routes, and from General Obligation Bonds for the other segments. Due to budget concerns, only State-Aid eligible segments were constructed in 2003 except for Brookside Avenue which was held over due to concerns from the neighborhood. Therefore, this project includes all of the non-State Aid segments plus Brookside Avenue. Preliminary plans for each of the sidewalk segments have been developed by Engineering Division staff based upon the guidelines established for the program. These guidelines indicate a preferred design of a 6’-wide concrete sidewalk with a 7’-wide grass boulevard. When necessary to protect trees, where existing yard slopes are significant, or other physical conditions warrant, the boulevard or the sidewalk width may be narrowed. St. Louis Park City Council Meeting 030104 - 8f - Sidewalk Improvements Page 2 of 5 Public Involvement: In February 2003, an informational letter and a questionnaire was mailed to all affected property owners informing them about the upcoming project. The questionnaire asked residents to inform the City of any special circumstances or issues that might impact the project, i.e. sprinkler systems, special plants, etc. Of the 90 questionnaires mailed out, 30 have been returned, (33%). About 10 of these were from the segments under consideration. In 2003, property owners were sent another letter informing them that the project had been delayed until 2004. If Council desires to forward this project, the next step will be to hold informational meetings with the affected property owners to solicit input on the designs and to answer questions about construction. These meetings would be scheduled for mid-March. A summary of the comments received from all approaches, (neighborhood meetings, questionnaire, and through telephone conversations), will be prepared for the City Council at the time of final plan approval. Residents will be notified of the date and time when final plan approval is scheduled on the Council agenda. Design/Construction Considerations: Aquila Avenue (33rd Street to 34th Street): Two trees and several bushes will need to be removed. The fence at 3334 (ranch style) will need to be relocated off the right-of-way by the property owner. Staff discussed this with the property owner last year. This sidewalk will also extend north of 33rd Street and connect into the existing trail W. 41st Street (34th Street to 36th Street): Installing walk in the existing boulevard area would involve the loss of a significant number of trees. Therefore, staff has designed this segment to narrow the street by 6 feet with no boulevard to allow installation of the walk. This will require that the entire street surface be milled off and replaced to provide adequate drainage. Some storm sewer work is needed on the west end. Street narrowing will require that parking on both sides of 41st Street be removed. A formal resolution will be presented to the Council for consideration in conjunction with final plan approval. Morningside Avenue (Wooddale Avenue to Browndale Avenue): No significant issues were encountered in designing this segment. The boulevard was kept at 0 feet for most of the segment to avoid impacts to trees. The sidewalk will jog south at the corner of Browndale Avenue to avoid two large trees. The sidewalk will also extend south on Browndale, from Morningside, to the first driveway. Wooddale Avenue (Highway 100 ramp to Webster Avenue): This segment runs along the east side of Wooddale Avenue, adjacent to Aldersgate Methodist Church. This walk will bridge the cul-de-sac at Goodrich Avenue which prevents through movement of vehicles. St. Louis Park City Council Meeting 030104 - 8f - Sidewalk Improvements Page 3 of 5 Brookside Avenue (W. 42nd Street to Jackley Park): This segment was originally intended to run from W. 42nd Street south to Yosemite Avenue. In January 2003, the City received a petition signed by several residents along Brookside Avenue expressing concern over the loss of very large, mature trees as a result of the sidewalk installation. Subsequently, staff prepared a design for Brookside that would narrow the street by 6 feet in order to install the new walk without the loss of the largest trees. As a result of a neighborhood meeting and a follow-up meeting with neighborhood representatives, the walk was shortened to run from W. 42nd Street to the south edge of Jackley Park. Association leaders expressed interest in providing additional parking near the park if possible. Staff was able to design this sidewalk segment to allow for a 4-stall parking bay adjacent to the park. Parks and Recreation staff indicated that this was adequate based on current park activities. This design would remove two trees, relocate the park sign, and re-grade the slope down into the park. Financial Considerations: All of the segments are anticipated to be funded using General Obligation bond funds. Estimated costs, based upon the proposed plans, are higher than originally anticipated when the program was developed. $294,877 was budgeted in the Capital Improvement Program for these sidewalk segments. The total estimated cost, at this time, is $309,380. These costs will be refined as the plans are finalized. A summary of the anticipated construction costs and design elements follows: Estimated Costs: Street From To Side Narrow Street Walk Width Blvd. Width Cost Aquila Ave. 33rd Street 34th Street West 0’ 6’ 3’ $29,618 W. 41st Street Wooddale Ave. TH 100 pedestrian bridge South 6’ 6’ 0’ $124,419 Morningside Ave. Wooddale Ave. Browndale Ave. South 0’ 6’ 0’ $31,365 Wooddale Ave. Highway 100 ramp Webster Ave. East 0’ 5’/6’ 0’ $37,964 Brookside Ave. W. 42nd Street Jackley Park East 0’ 6’ 6’ $30,224 Sub-Total $253,590 Contingency $ 25,359 Subtotal $278,949 Engineering & Admin. $ 30,431 TOTAL $309,380 Revenue Sources: General Obligation Bond proceeds $309,380 St. Louis Park City Council Meeting 030104 - 8f - Sidewalk Improvements Page 4 of 5 Project Timeline: Should the City Council approve the City Engineer’s Report, it is anticipated that the following schedule could be met: • City Engineer’s Report to City Council March 1, 2004 • Neighborhood meetings Mid-March • Finalize plans March/April • Plan approval & authorization to advertise for bids April 5 • Advertise for bids April/May • Bid Opening May 6 • Bid Tab Report to City Council May 17 • Construction June through August Summary of Feasibility: The proposed project is cost-effective and feasible under the conditions noted and at the prices estimated. Recommendation: It is recommended that the City Council adopt the attached resolution accepting the City Engineer's report, establishing a project for these improvements, and authorizing staff to hold informational meetings with the affected property owners. Attachment: Map (Supplement) Resolution Prepared by: Maria A. Hagen, City Engineer Reviewed By: Michael P. Rardin, Director of Public Works Approved by: Tom Harmening, City Manager St. Louis Park City Council Meeting 030104 - 8f - Sidewalk Improvements Page 5 of 5 RESOLUTION NO. 04-037 RESOLUTION ACCEPTING THE CITY ENGINEER’S REPORT, ESTABLISHING AN IMPROVEMENT PROJECT AND AUTHORIZING STAFF TO SPONSOR INFORMATIONAL MEETINGS WITH AFFECTED PROPERTY OWNERS FOR THE CONSTRUCTION OF SIDEWALKS WHEREAS, the City Council of the City of St. Louis Park has received a report from the City Engineer related to the construction of various segments of concrete sidewalk identified in the Sidewalk, Trail, Bikeways and Crossing plan. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota, that: 1. The City Engineer’s Report regarding the construction of various segments of sidewalk within the city is hereby accepted. 2. The proposed project, designated as Project No. 04-02, is hereby established. 3. The City Engineer is authorized to hold informational meetings with affected property owners and residents for the purposes of reviewing the proposed plans and soliciting input. Attest: Adopted by the City Council March 1, 2004 City Clerk Mayor Reviewed for Administration: City Manager