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Home My WebLink About2002/11/04 - ADMIN - Agenda Packets - City Council - RegularAGENDA SUMMARY CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA November 4, 2002 – 7:30 p.m. 7:20 – Economic Development Authority 1. Call to Order a. Pledge of Allegiance b. Roll Call 2. Presentations 3. Approval of Minutes a. City Council Minutes of October 21, 2002 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 regarding AOL Time Warner Restructuring Document AOL Time Warner, the parent company of the subsidiary that operates the cable television franchise in St. Louis Park, is restructuring and seeks the City’s approval to transfer the franchise to Time Warner Cable, Inc., a new intermediary company. Recommended Action: Mayor to close the public hearing and set first reading of the attached resolution for November 18. 7. Requests, Petitions, and Communications from the Public - None 7a Contract for Public Safety Dispatch 1/1/02 – 12/31/03 Document A 2 year agreement with LELS Local #220, Public Safety Dispatch: 2002 & 2003. Recommended Action: It is recommended that the City Council adopt the attached resolution approving a Labor Agreement between the City and Law Enforcement Labor Services Inc. (Local #220) for Public Safety Dispatch, establishing terms and conditions of employment for two years: 1/1/02 – 12/31/03. 7b. Establishing employer contribution for employer-provider cafeteria style benefit programs for 2003. Document Each year, the City Council is asked to approve an amount for Employer contribution to the Cafeteria Benefit Plan. The amount is based on market and increased insurance premiums. Recommended Action: Motion to adopt resolution approving a $40/mo. increase in the employer contribution for the cafeteria benefit plan for 2003 7c. Cedar Trails Condominium Association Housing Improvement Area Document Second reading of ordinance to establish the Cedar Trails Condominium Association Housing Improvement Area and related actions to implement project. Recommended Action: Four motions are recommended. 1. Motion to approve second reading of an ordinance to establish the Cedar Trails Housing Improvement Area, approve summary and authorize publication. 2. Motion to approve Resolution to impose fees. 3. Motion to authorize execution of Contract for Private Development and any other related documents, by the Mayor and City Manager, between the City and the Cedar Trails Condominium Association. 4. Motion to approve Resolution establishing internal loan fund. 7d. First reading of Ordinance amending Chapter 8, Article II, Subdivision XII, of the St. Louis Park Municipal Code concerning pawnbrokers and providing a penalty for violation. Document This ordinance authorizes the City of St. Louis Park to become part of the Automated Pawn System. Recommended Action: Motion to approve first reading of ordinance and set second reading for November 18, 2002. 7e. Second Reading of zoning ordinance text amendments regarding detached garages and other accessory structures/uses. Document Case No. 02-24-ZA Recommended Action: Motion to approve second reading of the zoning ordinance text amendments regarding detached garages and other accessory structures/uses, approve the summary ordinance and authorize publication. 8. Resolutions, Ordinances, Motions 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 NOVEMBER 4, 2002 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 for filing Board of Zoning Appeals Minutes of August 22, 2002 Document 4b Motion to accept for filing Human Rights commission Minutes of September 18, 2002 Document 4c Motion to approve resolution authorizing final payment for Elec Install & Maint #100-02, EVP System, in the amount of $30,600 Document 4d Motion to approve a 6 month extension of Beltline’s Wolfe Lake Professional Center Final PUD and Final Plat consideration until April 15, 2003. Document 4e Motion to adopt a resolution amending Vail Place final plat approval to extend the plat filing deadline to January 2, 2003. Document 4f Motion to accept for filing minutes of Park and Rec Advisory commission meeting of September 18, 2002 Document AGENDA SUPPLEMENT CITY COUNCIL MEETING November 4, 2002 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”. UNOFFICIAL MINUTES CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA October 21, 2002 1. Call to Order Mayor Jacobs called the meeting to order at 7:30 p.m. At Mayor Jacob’s request, Troop 282 led the pledge of allegiance. The following Councilmembers were present at roll call: Jim Brimeyer, Ron Latz, Chris Nelson, Susan Sanger, Sue Santa, Sally Velick, and Mayor Jeff Jacobs. Also present were the City Manager (Mr. Meyer); City Attorney (Mr. Foli); Finance Director (Ms. McGann); Assistant Finance Director (Ms. Bursheim); Public Works Coordinator (Mr. Merkley); and Recording Secretary (Ms. Samson). Additional Staff present were: Deputy City Manager (Mr. Pires); and Economic Development Coordinator (Mr. Hunt). 2. Presentations 2a. St. Louis Park Community Foundation Kurt Peterson thanked the members of the formation committee of the St. Louis Park Community Foundation, and he briefly discussed the Foundation’s purpose and goals. 3. Approval of Minutes 3a. City Council Minutes of October 7, 2002 The minutes were 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. 4a Adopt Resolution No. 02-114 appointing additional election judges and student judges for the General Election to be held November 5, 2002 4b Adopt Resolution No. 02-115 authorizing the submission of an Environmental Response Fund grant application to Hennepin County 4c Approve Additional $10,000 Allocation of 2001 CDBG Funds to Vail Place 4d Adopt the attached Resolution No. 02-116 that accepts this report considering major equipment replacement scheduled and budgeted for 2003 4e Approve Encroachment Agreement with Walser Automotive Group, Inc., 5501 Excelsior Boulevard for use of City street right of way for parking lot purposes 4f Approve Assessment Agreement with Gilbert S. and Erica Buffington for the installation of concrete sidewalk adjacent to their property at 3800 Huntington Avenue South 4g Bid Tabulation: Motion to designate Knish Corporation the lowest responsible bidder and authorize execution of a contract with the firm in the amount of $351,249.05 for the 2002 Sidewalk Improvement Project – City Project No. 02- 01B 4h Motion to accept for filing Housing Authority Minutes of September 11, 2002 4i Motion to accept Vendor Claim Report for filing (Supplement) It was moved by Councilmember Nelson, seconded by Councilmember Sanger, to approve the Agenda and items listed on the Consent Calendar. The motion passed 7-0. 5. Boards and Commissions--None 6. Public Hearings 6 a. `Public Hearing on the Levying of Assessments for Delinquent Fees and Charges. Resolution No. 02-111 Finance Director Jean McGann reported that the City certifies various delinquent accounts every year, and the charges are reflected on individuals’ property tax statements if delinquent after September 30th. Ms. McGann anticipates 25% of the $226,000.00 of the delinquent accounts will be paid. Ms. McGann introduced Jodi Bursheim, Assistant Finance Director, who handled the certification process this year. Mayor Jacobs opened the public hearing. With no one wishing to speak, Mayor Jacobs closed the public hearing. Councilmember Sanger said delinquent accounts have a negative impact on the City. She would like to discuss delinquent accounts at a Study Session. It was moved by Councilmember Latz, seconded by Councilmember Sanger, to adopt Resolution No. 02-111 to assess delinquent water, sewer, refuse and other fees and charges. The motion passed 7-0. 6b. 2003 Budget Proposal for Special Service District No. 1 Resolution No. 02-112 Public Works Coordinator Scott Merkley stated the City Council approves the 2003 budget and the property owners’ service charges. Mr. Merkley said charges were reduced by about $5,000.00 this year, and the annual budget items were reduced by about $13,000.00 from last year. The Special Service District No. 1 advisory board approved the service charges and annual budget after their August 15, 2002 meeting. Mayor Jacobs opened the public hearing. Elizabeth York, who represents Silvercrest Properties and is the advisory board vice chair, said the City has done a wonderful job guiding Special Service District No. 1, and it is running smoothly. David Payne, of Al’s Liquors, and president of Special Service District No. 2, commended the City and Scott Merkley for their work. Mr. Payne added, the Special Service Districts do run smoothly. Mayor Jacobs closed the public hearing. It was moved by Councilmember Nelson, seconded by Councilmember Velick, to approve Resolution No. 02-112 setting the 2003 Budget and Property Owner Service Charge for Special Service District No.1 and directing staff to certify the annual service charge to Hennepin County. Councilmember Latz said the Special Service Districts are a great example of the City’s public and private enterprises working in partnership to enhance the appearance and functionality of the areas where the Special Service Districts operate. The motion passed 7-0. 6c. 2003 Budget Proposal for Special Service District No. 2 Resolution No. 02-113 Mr. Merkley said this item is essentially the same as Item 6b, however, it regards Special Service District No. 2. Mayor Jacobs opened the public hearing. With no one wishing to speak, Mayor Jacobs closed the public hearing. It was moved by Councilmember Nelson, seconded by Councilmember Sanger, to approve Resolution No. 02-113 setting the 2003 Operating Budget and Property Owner Service Charge for Special Service District No. 2 and directing staff to certify the annual service charge to Hennepin County. The motion passed 7-0. 7. Requests, Petitions, and Communications from the Public--None 8. Resolutions, Ordinances, Motions--None 9. Communications--None 10. Adjournment Mayor Jacobs adjourned the meeting at 7:49 p.m. City Clerk Mayor St. Louis Park City Council Agenda Item: 110402 - 4A - BOZA Minutes Page 1 of 9 MINUTES AUGUST 22, 2002 BOARD OF ZONING APPEALS CITY OF ST. LOUIS PARK The St. Louis Park Board of Zoning Appeals Committee conducted a regular meeting on Thursday, August 22, 2002, at St. Louis Park City Hall, 5005 Minnetonka Boulevard, St. Louis Park, Minnesota. Members Present: Vice Chair Susan Bloyer Commissioner Ryan Burt Commissioner Tom Powers Commissioner Paul Roberts Members Absent: Chair James Gainsley Staff Present: Marney Curfman, Community Development Intern. Janet Jeremiah, Planning & Zoning Supervisor Tara Olson, Community Development Secretary 1. CALL TO ORDER – ROLL CALL Acting Chair Bloyer called the regular meeting to order at 7:00 p.m. 2. APPROVE BOARD OF ZONING APPEALS COMMITTEE MINUTES Motion by Commissioner Burt, seconded by Commissioner Roberts, to approve the following minutes as presented with the following corrections: Page 4, amend Commissioner Bloyer comment to be prior to motion made. 1) Board of Zoning Appeals Committee public hearing and regular meeting minutes dated June 27, 2002. Motion by Commissioner Burt, seconded by Commissioner Roberts, that the regular meeting minutes dated June 27, 2002 are approved with the above corrections. Motion Carried. Voting Yes: Bloyer, Burt, Powers and Roberts. Voting No: None. 3. CONSENT AGENDA None St. Louis Park City Council Agenda Item: 110402 - 4A - BOZA Minutes Page 2 of 9 4. PUBLIC HEARINGS/COMMITTEE BUSINESS A. Case No. 02-28-VAR - The request of George Murray for a variance from the requirements of Section 36-164(f)(5) of the Ordinance Code related to zoning to permit a side yard setback of 2 feet instead of the required 5 feet for an attached garage addition on the property located in the “R-2” Single Family Residential District at 2837 Ottawa Avenue South. (Continued from May 23, 2002 and June 27, 2002) Ms. Jeremiah stated to the Commissioners that Mr. Murray has submitted a letter of withdrawal. She recommends closing the public hearing and a motion accepting the letter of withdrawal. Motion by Commissioner Roberts, seconded by Commissioner Powers, that the variance be withdrawn. Motion Carried. Voting Yes: Bloyer, Burt, Powers and Roberts. Voting No: None. B. Case No. 02-42-VAR - The request of James Dyvig for a variance from the requirements of Section 36-163(f)(3), 36-163(f)(4) and 36-163(f)(5) of the Ordinance Code relating to zoning to allow a 12 foot side yard setback from 22nd Street instead of the required 15 feet, to allow a 21 foot rear yard setback instead of the required 25 feet and to allow construction within the restricted area on a corner lot for an attached two- car garage for the property located in the “R-1” Single Family Residential District at 2207 Flag Avenue South. Ms. Curfman presented a report and concluded that all 7 findings have been met (subject to conditions stated in Finding 1) and recommends that the Board of Zoning Appeals approve a lesser number and degree of variances to permit a side street setback of 14 feet and a restricted area of 25 x 14 feet for a two-car attached garage on the south side of the property located in the R-1 single family residential district at 2207 Flag Avenue South subject to the following conditions: 1) The new attached garage shall be no larger than 20 x 24 feet and shall be located to obtain a 25-foot rear yard setback and a 14-foot side yard setback. The required building permit may impose additional conditions. 2) The old single-car garage shall be converted to an additional bedroom and the old driveway shall be removed and sodded. 3) The curb on Flag Avenue shall be replaced in accordance with approval by the Public Works Director. A new permit for the curb cut on 22nd Street shall be obtained. Commission Powers asked staff if the owners were to build in the restricted area as proposed how far would the attached garage encroach into that area. In addition, will you explain more about the restricted area. St. Louis Park City Council Agenda Item: 110402 - 4A - BOZA Minutes Page 3 of 9 Ms. Jeremiah stated that the restricted area is a 30 x 30 foot area that extends from the applicant’s neighbor’s side property line on 22nd Street towards Flag Avenue which is the 30 feet from one direction and from 22nd Street to the north would be the 30 feet from the other direction. There is a 30-foot front yard setback minimum so the restricted area is 30 feet in this direction and 30 feet towards Flag Avenue. The applicants original proposal for a three-car attached garage would have actually extended the full width of the house. Currently they are proposing a 21-foot rear yard setback, which is still a 9-foot encroachment into the restricted area. The applicant would like to have a 12-foot setback from 22nd Street, which is also encroaching. Staff recommends the applicants reduce the width of the garage and/or move it 4- feet towards Flag Avenue so they meet the 25-foot rear yard setback but still have 5-feet of restricted area encroachment. Staff also recommends that they reduce the depth of the garage to 20-feet, which would allow the applicants to become closer in meeting the 15-foot setback from 22nd Street. A standard garage size is 20 x 24 feet. However, the city does receive proposals for free standing garages that are 20 x 22 feet which is not an unusual size. It does make it difficult for opening car doors and difficulty with storage if you get any smaller than that, so staff believes that a 20 x 22 foot garage is adequate size garage which will still allow reasonable use for a two car attached garage. This will eliminate the need for the rear yard variance and will reduce the side yard variance to a 1-foot variance from a 15-foot setback to a 14-foot setback and reduces the encroachment on this restricted area but it does not eliminate it. There are still 2 variances necessary but staff believes this will be the minimum variance that would still accommodate this proposal along with preserving open space. Commissioner Roberts asked staff to clarify the applicant’s variance request, he understands that staff is recommending a smaller proposal then what the applicants requested. Ms. Jeremiah stated that staff is recommending that you approve a one foot variance to the side yard street setback on 22nd Street and a variance to restricted area which is 30 x 30 foot area adjacent to the neighboring property. The applicant’s proposal would require a 3-foot variance from the side street setback and a 21-foot rear yard setback instead of the required 25-foot rear yard setback. Commissioner Powers stated that he feels that allowing the applicant to build in the restricted area would have a large effect on the adjoining property. Ms. Jeremiah stated that not only does it affect the property but it also affects the open space on the lot. We do have a 600 square foot usable open space requirement with one of the dimensions being a minimum of 30 feet, the more encroachment in that area the more they impact having usable open space in their rear yard. There are number of factors that play and those were staff considerations. It is the Boards decision whether a larger garage is reasonable use but staff would like to minimize the variance and preserve open space. Commissioner Burt asked staff to explain the purpose of the 30 x 30 square foot area and would like staff to explain how a 20 x 24 foot garage is considered a standard size for a two-car garage. St. Louis Park City Council Agenda Item: 110402 - 4A - BOZA Minutes Page 4 of 9 Ms. Jeremiah stated that 20 x 24 feet is the most typical size staff sees particularly for detached garages. The applicant can maintain this size if they were to shift the location of the garage 4- feet to the south. They would then meet that rear yard setback, but staff recognizes that the applicant may lose a window which is undesirable for the applicant. Therefore, staff has suggested to the applicant to construct a 20 x 22-foot garage, which is still considered a typical size. This suggestion would only require the garage to be shifted 2-feet and the applicant can then maintain the window. Commissioner Burt asked staff to explain the purpose of the 30 x 30-foot area. Ms. Jeremiah stated there are several reasons for the 30 x 30-foot requirement which applies to situations where you have a corner lot where the rear yard of the lot abuts the front yard of a neighboring lot. Three basic reasons for this Ordinance are to help maintain a fairly consistent setback on 22nd street views from the neighbor’s home and traffic visibility. Ordinarily, when you have a street on your side yard you can come within 15 feet but your neighbor would have to be setback 30 feet. For example, if you have a substantial encroachment into the restricted area there’s a noticeable difference in the consistency of the streetscape which can impede the neighbors’ views and their feelings of having a open front yard. Also, safety issues can be a concern if the neighbor’s have a nearby driveway and your building may impede their visibility of the street. With no more questions, Acting Chair Bloyer opened the public hearing. James Dyvig, applicant of 2207 Flag Avenue South, stated that his existing garage is very tight, which is 21 x 13.8. This garage only allows him to park his vehicle and allows 2 1/2 feet on either side for storage such as tools and lawn equipment. He feels that a 20 x 22-foot garage would also be very tight for his needs. His family would like to store two vehicles along with the storage of the lawnmower, snow blower and lawn tools. Also, the placement of the garage will require him to remove a living room window but with staffs recommendations on shifting the garage more to the south will make him lose a total of two windows. In addition, he is willing to decrease the proposed length of the garage to 20-feet deep which is staff recommendation but would not like to move the garage any closer to Flag Avenue which would block a window and also feels that staffs recommendation of a 22-foot wide garage would not fit his needs. Furthermore, the City Inspector advised the applicant that an adequate amount of light would be lost due to blocking majority of the front window caused by the garage. Commissioner Powers stated that he would have sympathy for the applicant if the window were removed but feels that the restricted area is very important. This restricted are does impact the neighbors greatly, such if the neighboring property were interested in adding on in the future themselves. St. Louis Park City Council Agenda Item: 110402 - 4A - BOZA Minutes Page 5 of 9 Mr. Dyvig stated that he doesn’t have a back yard so impacting the neighbors in the future would be very small. Also, one-third of his home is presently located in the neighbors’ front yard which is only setback 17 feet from the property line and my proposal is 21 feet from the backyard fence. Commissioner Powers stated the he is not concerned with the rear yard setback as much as the restricted area that he is the most concerned about. Ms. Jeremiah stated that the Commissioners should consider the reasonable use perspective and whether you feel he has minimized the variances to the extent possible to still provide reasonable use. She pointed out that the neighbors have submitted a letter stating they were fine with the proposed addition but future owners may have a problem. There is an impact on at least one maple tree, the neighbors tree also could be impacted since the position of the tree is so close to the property line. These are issues that staff has taken into consideration. Staff attempted to minimize the variances and still preserve the reasonable use. Commissioner Burt asked staff to clarify the amount of distance of encroachment into the clear area with what staff has proposed versus just the maximum amount allowed. Ms. Jeremiah stated the difference is 4 feet. He is proposing a 21-foot setback from the eastern property line so it would be a 9-foot encroachment into the 30-foot restricted area. Staff is proposing a 25-foot setback which would reduce it to a 5-foot encroachment in that direction. I think staff and the board are both in an agreement with the 20-foot depth and 14 foot setback from 22nd Street. The applicant is also agreeable to reducing the depth of the garage to 20-feet. Commissioner Burt asked if staff was asking for 4 feet. Ms. Jeremiah stated that was correct. With no more questions, Acting Chair Bloyer closed the public hearing. Commissioner Burt stated he feels the applicant has been very flexible and willing to try to reduce the number of variances needed and would like to thank staff for doing an exceptional job with thinking this application through from all directions and trying to find a solution. In addition, he feels that storage space is important along with having accessibility while having car doors open. Also, he would like to point out that the existing neighbor submitted a letter of acceptance for the applicant proposal of encroachment but the neighbor did not state what he was accepting and since several plans were submitted and changes were made to each, that is unclear. Commissioner Roberts stated he would be agreeable to a 24 x 20 foot two-car attached garage and keep the rear yard variance to 21 feet instead of the required 25 feet and allow a 14 foot side yard setback which would be the footprint of the garage which would encroach into the restricted area. St. Louis Park City Council Agenda Item: 110402 - 4A - BOZA Minutes Page 6 of 9 Commissioner Powers stated although he has sympathy for the front window he does not feel the person should build in the restricted area. Acting Chair Bloyer stated that she agrees with Commissioner Roberts in addition feels the applicants nor the neighboring property would be able to use the adjacent yard for useable open space since it is a very small area. Also, she would not like to see the applicant lose adequate sunlight in that room and would like to not eliminate a rear yard variance but instead see a 20 x 24-foot garage. Commissioner Powers stated he agrees with staff’s recommendation and would like to thank staff for seeking alternatives for the applicant. Motion by Commissioner Roberts, seconded by Commissioner Burt, that the variance be granted for a 14 setback from street side yard, 21 foot rear yard setback and to allow a 30 x 21 foot restricted area and subject to the following conditions: 1. The new attached garage shall be no larger than 20 x 24 feet and shall be located to obtain a 21-foot rear yard setback and a 14-foot side yard setback. The required building permit may impose additional conditions. 2. The old single-car garage shall be converted to an additional bedroom and the old driveway shall be removed and sodded. 3. The curb on Flag Avenue shall be replaced in accordance with approval by the Public Works Director. A new permit for the curb cut on 22nd Street shall be obtained. Motion Carried. Voting Yes: Bloyer, Burt, and Roberts. Voting No: Powers. C. Case No. 02-43-VAR - The request of Pilgrim Cleaners for a variance from the requirements of Section 36-362(1)(a) of the Ordinance Code related to zoning to permit a sign setback of zero feet from the front property line instead of the required 20 feet for property located in the “C-1” Neighborhood Commercial District at 4120 Minnetonka Boulevard. Ms Jeremiah presented a report and concluded that all 7 findings have been met and recommends that the Board of Zoning Appeals approve the applicant’s request for a variance to permit a front yard setback of 0 feet instead of the required 20 feet for a free standing sign on the property located in the C-1 Neighborhood Commercial District at 4120 Minnetonka Blvd subject to the following conditions: 1. The sign must be a pylon sign (placed on a single pole) with the bottom of the sign face at least 8 feet above the ground level, and with no part of the sign overhanging the public right-of-way. 2. Prior to issuance of any new sign permit, the applicant shall remove the three existing freestanding signs. With no more questions, Acting Chair Bloyer open the public hearing. St. Louis Park City Council Agenda Item: 110402 - 4A - BOZA Minutes Page 7 of 9 Scott Russen of Lawrence Sign representative of Pilgrim Cleaners stated the applicants would like to construct a freestanding sign to enhance advertising since the existing signs are hard to see because of the position of the neighboring building. With no more questions, Acting Chair Bloyer closed the public hearing. Commissioner Bloyer would like staff to know that it has been brought to her attention in previous meeting that economic viability is not a concern in the variance approval and feels that staff should prohibit from adding it to future reports. Ms. Jeremiah responded that staff did not consider economics directly related to the proposed variance, for example whether it would cost more to comply with Code. Rather, staff considered it only in relation to preserving viable use of the property. Motion by Commissioner Roberts, seconded by Commissioner Powers, that the variance be granted for a variance to permit a front yard setback of 0 feet instead of the required 20 feet for a free standing sign on the property located in the C-1 Neighborhood Commercial District at 4120 Minnetonka Blvd subject to the following conditions: 1. The sign must be a pylon sign (placed on a single pole) with the bottom of the sign face at least 8 feet above the ground level, and with no part of the sign overhanging the public right-of-way. 2. Prior to issuance of any new sign permit, the applicant shall remove the three existing freestanding signs. Motion Carried. Voting Yes: Burt, Powers and Roberts. Voting No: Bloyer. 5. Old Business: None 6. New Business: Commissioner Powers would like to address the Board that he liked seeing economic viability in the staff report. In addition, he feels that is a way of discussing hardship unless the applicants are doing economic viability. Ms. Jeremiah stated that economic hardship/viability cannot be the only reason for consideration of a variance and in the previous case clear physical hardships were based on the conditions of this property and the adjoining property. Staff looked at the viability of this business and what constitutes a reasonable use in a Commercial District. 7. Communications: St. Louis Park City Council Agenda Item: 110402 - 4A - BOZA Minutes Page 8 of 9 Ms. Jeremiah stated that staff has been looking at options for training, however in September we may have a large agenda which would not give us adequate time for training. Acting Chair Bloyer announced she would not be attending the Board of Zoning Appeals meeting on September 26, 2002. Commissioner Burt suggested the Board wait a few months for a smaller agenda and have the training at that time and if that doesn’t seem to work than picking a date different then the regular schedule meetings would be important. Commissioner Powers agrees with Commissioner Burt as long as there is a time limit on how many months it would be put off. Commissioner Roberts stated that these training sessions are usually scheduled on a separate night of the regular scheduled meeting. Ms. Jeremiah stated she will notify the Commissioner during the September Board of Zoning Appeals meeting of upcoming October variances, also it would be great to have the Assistant Zoning Administrator on staff at that time. 8. Miscellaneous: None 9. Adjournment: Commissioner Powers moved and Commissioner Roberts seconded the motion for adjournment. The regular meeting of the Board of Zoning Appeals adjourned at 8:18 p.m. Respectfully Submitted, Tara Olson Community Development Secretary St. Louis Park City Council Agenda Item: 110402 - 4A - BOZA Minutes Page 9 of 9 St. Louis Park City Council Agenda Item: 110402 - 4b - Human Rights Commission Minutes Page 1 of 3 City of St. Louis Park Human Rights Commission Meeting Minutes – September 18, 2002 Westwood Room - City Hall __________________________________________________________________________________ Present Commission Members: Julie Kirsch, Kristi Rudelius-Palmer and Kristin Siegesmund Staff: Lynn Schwartz, Recording Secretary Call to Order Chairperson Kristin Siegesmund called the meeting to order at 7:10 p.m. August Minutes: Moved by Kristi Rudelius-Palmer and seconded by Julie Kirsch to approve the August minutes after changing “diversity” to “human rights” in the wording for Goal 2, Objective 1. (Text should read, “To encourage all sectors of the city to utilize public space to promote human rights through the arts.”). Motion passed unanimously. September Agenda: Members agreed to the items on the agenda. Reports Commissioner Reports: Kristen Siegesmund reported that Shep Harris has resigned from the commission in order to spend more time with his family. Siegesmund said Harris offered to help on some commission projects, specifically following up on calls to the Human Rights phone line. Siegesmund pointed out that this most recent resignation and the slow appointment process has left the commission woefully short of members. Although the commission has a complement of 13 members (10 appointed by the City Council, 1 appointed by the School Board and 2 youth members), there are currently only four voting members and one student on the commission. The commission expressed its frustration with the lengthy appointment process and asked that the City Council give special attention to interviewing and appointing members as soon as possible. Members also expressed their frustration with the School Board which, likewise, has failed to appoint a representative to the commission. Unless new members are appointed more quickly, commissioners fear they will not be able to accomplish the projects on their work plan. Kristi Rudelius-Palmer reported that she spoke with former commissioner Herb Isbin about coming to a meeting to be honored by the commission for his service. Because Isbin declined to attend a meeting for this purpose, Rudelius-Palmer suggested that the commission send him a certificate or plaque recognizing his volunteer efforts. Rudelius-Palmer also noted that no commissioners have signed up for the annual conference of the League of Minnesota Human Rights Commissions set for September 28. None of the members present are able to attend this meeting; Rudelius-Palmer offered to contact Cassandra Boddy and Patrick St. Louis Park City Council Agenda Item: 110402 - 4b - Human Rights Commission Minutes Page 2 of 3 Rogers to see if they are interested in attending. If they are interested, they should contact Lynn Schwartz for registration materials. Staff Report: Lynn Schwartz noted that Martha McDonell will be on medical leave for the coming six weeks. During McDonell’s absence, commission members should contact Schwartz for staff assistance. Schwartz also reported that McDonell asked that the commission be told that the City Council interviewed four applicants for the commission and it appears that two may be appointed within the near future. Old Business 2002 – 2004 Work Plan: Siegesmund and Rudelius-Palmer reported that the commission had a positive meeting with the City Council on September 18 when the commission’s proposed work plan was discussed. Siegesmund credited Shep Harris and Kristi Rudelius-Palmer for their good work in assembling the work plan. These points were made at this meeting: § The commission expressed its interest in having the City Code changed so a non-resident from the business community could be appointed to the commission. While this issue is being reviewed, the City Council suggested that business community members could be invited to attend or serve as a liaison in a non-voting capacity. The council also suggested that a member of the Human Rights Commission attend the St. Louis Park Business Council meetings as another way to foster a relationship with the business community. § The City Council expressed a great deal of interest in the human rights audit. It asked the commission to state clearly its focus (general overview or specific focus on certain groups/issues) and how it would gather this information (informal interviews, formal survey, use existing data, etc.). A council member also suggested that the commission not overlook the needs of the mentally ill when formulating the audit parameters. Members agreed to develop a more specific proposal for the Council. § In response to the commission’s request for a budget, the City Council asked that the commission formulate specific recommendations for a three year line item budget. § The City Council expressed a strong interest in having the commission get the word out about things that are going well in St. Louis Park. § The City Council seemed amenable to having mobile city hall used to promote human rights. § When the commission expressed its strong interest in using public art to promote human rights, commissioners said they felt they may have more interest in this that staff or the council appear to have. Using the City Council’s input, Kristen Siegesmund asked commissioners to prioritize the projects in the work plan and select a project they’d like to work on. After a discussion, members agreed on these projects as their priorities: 1. Human Rights Audit: Although it is not the project that interests her the most, Kristi Rudelius- Palmer offered to work on the audit. None of the members present had this topic as their first priority, so members discussed the need to either find volunteers or new commissioners interested in heading up this project. Kristen Siegesmund also suggested that the commission could design the audit and recommend to the City Council that a contractor be hired to pursue this project. Members agreed to work on structuring the parameters of an audit and determining how it could be funded. St. Louis Park City Council Agenda Item: 110402 - 4b - Human Rights Commission Minutes Page 3 of 3 2. Public Art: Kristen Siegesmund noted that this is the project that most interests her. She would like to work to create a community art initiative—possibly in conjunction with Friends of the Arts—to get public art with a human rights theme placed in the Park Commons Town Green and other public spaces in St. Louis Park. Kristi Rudelius-Palmer said she would like to see a project to have peace poles purchased for public spaces, parks and community gardens added to the work plan. 3. Continue Outreach and Recognition Efforts: Kristen Siegesmund said the commission needs to continue its work on two annual projects: the student essay contest and the human rights award. 4. Human Rights Education/School Outreach: Julie Kirsch said this topic was of the greatest interest to her. Members agreed to talk to principals and/or social workers to determine what the schools are doing now and what issues the schools face. They also agreed to support the schools’ cultural compass events. 5. Human Rights Literacy Mobile: Kristi Rudelius-Palmer wants to pursue using mobile city hall as a mobile meeting room/library/resource center for human rights. She would like to see it stocked with posters, books, videos and posters that promote human rights. Set Agenda For Next Meeting Members agreed to add the following items to the October agenda: § Student Essay Contest – Kristi Rudelius-Palmer will determine what the League has set as the essay question. Lynn Schwartz will send commissioners information from previous years. Members are asked to review these materials prior to the October meeting so they can come prepared to plan the contest outreach efforts. The commission should aim to get the materials to schools in December. § Human Rights Award - Lynn Schwartz will send commissioners information from previous years. Members are asked to review these materials prior to the October meeting so they can come prepared to plan the outreach effort for the award. The commission should aim to get the materials out in November so the commission can select a winner in December and make the award at a City Council meeting in January. § Work Plan Projects – Continue discussion on priority projects: Human Rights Audit, Public Art, Education/School Outreach, and Human Rights Mobile. Adjournment With no further business, the commission adjourned at 8:25 p.m. Respectfully submitted, Lynn Schwartz Recording Secretary RESOLUTION NO. _____ RESOLUTION ACCEPTING WORK ON EMERGENCY VEHICLE PREEMPTION SIGNAL SYSTEMS CITY PROJECT NOS. 01-03 & 02-05 CONTRACT NO. 100-02 BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota, as follows: 1. Pursuant to a written contract with the City dated July 16, 2002, Electrical Installation & Maintenance Company has satisfactorily completed the installation of the emergency vehicle preemption signal systems as per Contract No. 100-02. 2. The Director of Public Works has filed his recommendations for final acceptance of the work. 3. The work completed under this contract is accepted and approved. The City Manager is directed to make final payment on the contract, taking the contractor's receipt in full. Reviewed for Administration: Adopted by the City Council November 4, 2002 City Manager Mayor Attest: City Clerk St. Louis Park City Council Agenda Item: 110402 - 4d - Beltline Final Plat Extension Page 1 of 1 4d Motion to approve a 6 month extension of Beltline’s Wolfe Lake Professional Center Final PUD and Final Plat consideration until April 15, 2003. Case No. 99-19-PUD Background: On July 15, 2002, the City Council approved a Preliminary PUD and Plat for Beltline to redevelop approximately 5.05 acres in the Beltline Industrial Park on property located in the northwest quadrant of Belt Line Boulevard and West 36th Street. The Ordinance requires that the applicant must submit the final plat within 90 days of the preliminary plat approval. On August 14, 2002, Beltline submitted an application for Final PUD and Plat, however due to several unresolved issues it was determined to be an incomplete application. Subsequent to that Beltline has been considering options for their final plat. Therefore the applicant has requested an extension. Since the issues seem to be taking some time to work out, staff recommends a 6 month extension. Recommendation: Staff recommends extending consideration of the Final PUD and Plat until April 15, 2003 to allow Beltline additional time to market the site to resolve the issues. Attachments: Letter from Beltline (Supplement) Prepared by: Julie Grove, Associate Planner Approved by: Charles W. Meyer, City Manager St. Louis Park City Council Agenda Item: 110402 - 4e - Val Place Plat Extension Page 1 of 4 4e Motion to adopt a resolution amending Vail Place final plat approval to extend the plat filing deadline to January 2, 2003. Case No. 02-39-s Background: On September 3, 2002 the City Council approved a preliminary and final Plat for Vail Place, which combined four lots platted underneath two tax parcels located at 3647 Sumter Ave S and 7805 37th Street West for the construction of a two-story seven unit apartment building. The adopted resolution required the final plat be recorded with the County within 60 days of final plat approval. The applicant submitted the final plat to the County for recording on Monday, October 28, 2002 and is therefore requesting a 60-day extension to the plat filing deadline to allow time for the County to record the plat. Recommendation: Staff recommends adoption of a resolution amending final plat resolution for Vail Place and extending the plat filing deadline to January 2, 2003. Attachment: • Applicant’s extension request (Supplement) • Proposed resolution Prepared by: Julie Grove, Associate Planner Approved by: Charles W. Meyer, City Manager St. Louis Park City Council Agenda Item: 110402 - 4e - Val Place Plat Extension Page 2 of 4 RESOLUTION NO. 02-121 Amends Resolutions 02-096 RESOLUTION AMENDING RESOLUTION 02-096 ADOPTED ON SEPTEMBER 3, 2002 APPROVING THE PRELIMINARY AND FINAL PLAT OF VAIL PLACE (EXTENSION FOR FILING OF PLAT) BE IT RESOLVED BY the City Council of St. Louis Park: Findings 1. Vail Place, owners and subdividers of the land proposed to be platted as Vail Place, have submitted an application for approval of preliminary and final plat of said subdivision in the manner required for platting of land under the St. Louis Park Ordinance Code, and all proceedings have been duly had thereunder. 2. The proposed preliminary and final plat have been found to be in all respects consistent with the City Plan and the regulations and requirements of the laws of the State of Minnesota and the ordinances of the City of St. Louis Park. 3. The subdivider has requested a 60 day extension for the filing of the final plat with Hennepin County due to timing constraints. 4. The proposed plat is situated upon the following described lands in Hennepin County, Minnesota, to-wit: Lots 25, 26, 27 and 28, Block 313, Rearrangement of St. Louis Park, Hennepin County, MN Conclusion 1. The proposed preliminary and final plat of Vail in the Park is hereby approved and accepted by the City as being in accord and conformity with all ordinances, City plans and regulations of the City of St. Louis Park and the laws of the State of Minnesota, subject to the following conditions: A. The site shall be developed, used, and maintained in accordance with the official exhibits, which shall be revised to meet the following conditions: i. Landscape and tree replacement plans must be revised as approved by the Zoning Administrator. St. Louis Park City Council Agenda Item: 110402 - 4e - Val Place Plat Extension Page 3 of 4 ii. Site plan must be revised to show final sidewalk and curb cut locations as approved by the Zoning Administrator and Public Works Director. B. Easements must be dedicated as shown on the final plat. C. Before a final plat is signed by the City, the developer shall comply with the following requirements: i. Submit financial security in the form of cash escrow or letter of credit in the amount of 125% of the costs of tree replacement, sidewalk installation, and repair/cleaning of public street and utilities. ii. Submit financial security in the amount of $2000 to be released when item D below is satisfied. iii. Submit an owners policy of title insurance, which insures the City’s interest in the plat as approved by the City Attorney. D. Within 60 days of final plat approval by the City Council, the subdivider shall record the final plat with the County Recorder. The subdivider shall, immediately upon recording, furnish the City Clerk with a print and reproducible tracing of the final plat showing evidence of the recording. The subdivider shall also provide a copy of the final plat on disc in an electronic data format. E. Prior to any site work, the developer shall meet the following requirements: i. A copy of the Watershed District permit shall be forwarded to the City. ii. Any other necessary permits from other agencies shall be obtained. iii. A final tree preservation plan shall be approved by the Zoning Administrator and any cash-in lieu of tree replacement be submitted. iv. Sign assent form and revised official exhibits. v. Required erosion control permits, utility permits and other required permits shall be obtained from the City. vi. Final sidewalk construction documents are approved by the Public Works Director and any easements required for installation of sidewalks on private property shall be dedicated to the City. F. Prior to issuance of any building permits, which may impose additional requirements, the developer shall comply with the following: i. Meet any Fire Department emergency access requirements during construction. ii. The subdivider shall furnish the City with evidence of recording of the final plat. iii. A lighting plan and photometrics and irrigation plan meeting the ordinance regulations shall be submitted to and approved by the Zoning Administrator. iv. Building material samples must be submitted to and approved by the Zoning Administrator. v. Meet conditions for beginning site work. G. The developer shall comply with the following conditions during construction: i. All City noise ordinances shall be complied with, including that there be no construction activity between the hours of 10 p.m. and 7 a.m. ii. The site shall be kept free of dust and debris that could blow onto neighboring properties. iii. Public streets shall be maintained free of dirt and shall be cleaned as necessary. St. Louis Park City Council Agenda Item: 110402 - 4e - Val Place Plat Extension Page 4 of 4 iv. The Zoning Administrator may impose additional conditions if it becomes necessary in order to mitigate the impact of construction on surrounding properties. H. Prior to construction of the fence and trash enclosure, submit detailed plans and a fence permit application for approval by the Zoning Administrator. I. Prior to issuance of any occupancy permits, lease restrictions as required by the variance approval shall be submitted and approved by the City Attorney. J. The developer or owner shall pay an administrative fee of $750 per violation of any condition of this approval. K. A 60-day extension from the original date approved for plat filing of November 1, 2002 shall be granted. provided, however, that this approval is made subject to the opinion of the City Attorney and Certification by the City Clerk. 2. The City Clerk is hereby directed to supply two certified copies of this Resolution to the above-named owner and subdivider, who is the applicant herein. 3. The Mayor and City Manager are hereby authorized to execute all contracts required herein, and the City Clerk is hereby directed to execute the certificate of approval on behalf of the City Council upon the said plat when all of the conditions set forth in Paragraph No. 1 above and the St. Louis Park Ordinance Code have been fulfilled. 4. Such execution of the certificate upon said plat by the City Clerk, as required under Section 26-123(1)j of the St. Louis Park Ordinance Code, shall be conclusive showing of proper compliance therewith by the subdivider and City officials charged with duties above described and shall entitle such plat to be placed on record forthwith without further formality. The City Clerk is instructed to record certified copies of this resolution in the Office of the Hennepin County Register of Deeds or Registrar of Titles as the case may be. Reviewed for Administration: Adopted by the City Council November 6, 2002 City Manager Mayor Attest: City Clerk St. Louis Park City Council Agenda Item: 110402 - 4f - Park and Rec Adv Comm Minutes Page 1 of 7 1 OFFICIAL MINUTES PARKS AND RECREATION ADVISORY COMMISSION SEPTEMBER 18, 2002 – 7:00 P.M. ST. LOUIS PARK RECREATION CENTER MEMBERS PRESENT: Kirk Hawkinson, Richard Johnson, Nancy Nelson, Dana Strong, and Tom Worthington MEMBERS ABSENT: Bruce Cornwall STAFF PRESENT: Rick Birno, Stacy Voelker and Cindy Walsh 1. Call to order Nancy Nelson, Chair, called the meeting to order at 7:07 p.m. 2. Adjustments to the agenda Nancy Nelson, Chair, added meeting schedule to item 4, New Business. 3. Approval of Minutes of June 26, 2002 Tom Worthington moved to approve the minutes, Kirk Hawkinson seconded. The motion passed 5-0. 4. New Business A. Baseball Association Update Rick Birno advised the Commission that the two Little League Associations in St. Louis Park have merged into one with Angie Heitzman serving as president. Mr. Birno advised the Commission that 7 – 12 year olds are able to participate in Little League. Dana Strong advised the baseball summit meeting held in August continued the merging discussions and since everyone was in support, the merger continued. Cindy Walsh distributed a letter from John Hynes indicating he is in the process of forming a new youth baseball association titled the St. Louis Park Traveling Baseball Association. Mr. Birno updated the Commission on the AAU. Dana Strong advised the Commission that the AAU could be any age from 7 – 18 years old. Kirk Hawkinson inquired on the difference between the AAU and traveling baseball. Mr. Birno and Mr. Strong advised three teams want to be separate from the Little League even though they are basically the same. Mr. Strong advised there are no tryouts for these teams as the president picks the coaches. Mr. Birno informed the Commission the City advised Mr. Hynes there are no fields available for AAU use unless they became an official association. If they became an association, they would get the same consideration as Little League and other St. Louis Park City Council Agenda Item: 110402 - 4f - Park and Rec Adv Comm Minutes Page 2 of 7 2 associations in St. Louis Park. Mr. Johnson inquired on the City policy for facility usage. Mr. Birno and Ms. Nelson advised the Commission recently revised the Facility Usage Policy earlier this year and indicated what the policy states. Ms. Walsh indicated the letter states they have not formed an association yet. Ms. Walsh feels that when AAU becomes an association, there may be a disagreement on field usage with other associations. If this occurs, both associations would need to present their case to the Parks and Recreation Advisory Commission and the Commission would need to determine what is right for youth in St. Louis Park. Mr. Strong also advised the AAU could recruit youth from any City but have not done so yet to his knowledge. The Commission discussed field usage, the policy, and how they will determine who get usage if it is brought to them. Mr. Strong feels the associations will request specific fields on an annual basis and feels this issue should be discussed at the next Commission meeting. The Commission members agreed the associations need to come to a regular scheduled meeting and the members need to decide what is best for the community. Mr. Johnson feels the Commission needs the number of youth in each association, what is needed for each association, tryout information (public or private) and how they choose the youth or how they operate. Mr. Strong feels the associations should have open, published tryouts and all youth are placed on a team. Ms. Walsh advised a response must be provided to Mr. Hynes advising him that if they do form an organization, the Commission will talk with them as with all other associations. Also, all considerations and declarations must be documented. Ms. Nelson advised the Commission will finalize what is needed (procedure) from associations in the event of conflict at the October meeting. Mr. Johnson feels the members need to know what facilities are available and what amenities are available for different age groups. Mr. Johnson also wants to know the past usage of fields as he feels it would assist in the discussion. Mr. Birno advised that Jenny Buskey, who reserves the fields, might be able to attend the next meeting. Mr. Hawkinson inquired if staff has records of other city field usage policies in which Mr. Birno indicated we do not. Mr. Birno also advised the AAU paid a fee to use our fields last year, as they were not an established association. The Commission members and staff will come with as much information on field usage and Mr. Strong would provide numbers. The Commission members will also come up with questions for associations to answer to assist in determining filed usage. St. Louis Park City Council Agenda Item: 110402 - 4f - Park and Rec Adv Comm Minutes Page 3 of 7 3 B. New Park Request Cindy Walsh distributed a letter from Mark & Jeanne Hendricks regarding a request for park maintenance by Westwood Hills pond. Ms. Walsh and Commission members reviewed the location of the request and found the department does general maintenance to the site. Ms. Nelson suggested Jim Vaughan advise homeowners in the area what they could do to clean up the pond. Ms. Nelson suggested that people need to change their habits in order to clean it up. Kirk Hawkinson asked how big the lot is and Mr. Johnson advised it is approximately 30 feet from curb to lake and 100 feet along curb. Mr. Johnson advised the City doesn’t do anything with ponds and that staff will attempt to mow it more frequently. Tom Worthington inquired if they have a neighborhood association in which Ms. Nelson indicated the neighborhood association is not very strong. Ms. Walsh advised staff did evaluate all City-owned property that is not designated parkland, nor is being used, and indicated the City might sell off some of these plots as it is a good way to bring funding into the Park Improvement Fund. The Commission members discussed and felt that was a good idea. Ms. Nelson indicated she would research how to advise the neighbors to assist in the clean up of the pond. Mr. Worthington and the Commission members suggested responding to the request and advising that the Commission had reviewed the request and felt there is no need for an active use park in that area. They also suggested providing technical assistance on how the neighbors could clean up the area and take care of it. C. Meeting Schedule The Commission members discussed and decided to hold their regular scheduled meetings on October 16, November 20, (December meeting was removed), January 15, February 19, and March 19. 5. Old Business A. Project Updates Ms. Walsh advised the Commission that Louisiana Oaks Park looks green as the fields are done and the trails are approximately 50% complete. Construction of the park building has just begun along with construction of the playground and benches. Ms. Walsh advised the fields will be available for use in September of 2003. Ms. Walsh advised the Commission that Wolfe Park construction is progressing. The soil in the park will be ready for seeding soon and the tiers in the Amphitheater will consist of sod. The amphitheater will be available for use in August of 2003. Ms. Walsh indicated Town Green has been landscaped, the pavers will be in soon, and the sculpture will be installed in October of this year. St. Louis Park City Council Agenda Item: 110402 - 4f - Park and Rec Adv Comm Minutes Page 4 of 7 4 The Commission was advised by Ms. Walsh that Keystone Park now has a multi use field since the storm water management project. B. Public Art for Louisiana Oaks Update Nancy Nelson advised commission members that public art is having art part of public space. Ms. Nelson indicated the art for Louisiana Oaks Park will be located in the playground, in sign, in benches, and in the building. Cindy Walsh advised of the selection process for artists on this project. Ms. Walsh distributed diagrams and picture of what the building and art will look like. Ms. Nelson advised that future park buildings would have basically the same colors, etc. as the building at Louisiana Oaks Park. Ms. Walsh advised the theme of the windows include oak leaves etched into the glass, colored glass, kites, and a rainbow color theme. The big glass area in the building will be etched and stain glassed. Ms. Walsh advised the selected artist is well known world-wide. Ms. Walsh also showed drawings of the entrance sign which is made of metal and includes trails, oak leaves, a pond, the Sun, and other items that will be included in the park. Ms. Walsh also showed bench and playground designs for the park. 6. Communications A. Chair Nancy Nelson indicated she did not receive a youth activities grant application. Rick Birno advised they have not been sent out yet, as the grant money has not been received. Ms. Nelson also inquired on the Goblin March, which is to be held October 25, and volunteered, along with Dick Johnson, to run a table. Staff thanked the Commission for volunteering. B. Commissioners Commissioner Dana Strong advised that he would like to discuss the coaches appreciation dinner and asked it be put on the November agenda. Commissioner Dick Johnson inquired if any issues have occurred regarding our release form on our registrations in which staffs advised there have not. Mr. Johnson also inquired if any issues have appeared regarding fees the department charges. Cindy Walsh advised the Finance Department keeps track of all fees departments’ charge and what the charges are for. The Finance Department then reports these fees to the State. Commissioner Tom Worthington inquired if the Commission would like to host an annual association summit meeting early in 2003 and the Commission agreed. Ms. Walsh advised no codes of ethics were received from associations to assist with creating a standard code of ethics. The Commission asked this be put on the agenda for their October meeting. St. Louis Park City Council Agenda Item: 110402 - 4f - Park and Rec Adv Comm Minutes Page 5 of 7 5 C. Program Report None. D. Director’s report None. 7. Adjournment Moved by Dick Johnson and seconded by Dana Strong to adjourn. Motion passed 5-0. With no further business, the Commission adjourned at 9:11 p.m. Minutes prepared and respectfully submitted by, Stacy M. Voelker Department Secretary St. Louis Park City Council Agenda Item: 110402 - 4f - Park and Rec Adv Comm Minutes Page 6 of 7 6 Purpose and Intent: The purpose of this policy, which establishes guidelines for the issuance of special park usage permits, is to provide for the health, safety and welfare of the public. It is the intent of the City of St. Louis Park to grant permits for exclusive or on-going use of municipal park property, without payment of the established fee for the use of such property, to those organizations which operate programs under the same general guidelines which govern public programs operated by the Parks and Recreation Department. Toward that end, organizations which request special permits to offer on-going programs on municipal park property without paying a usage fee to the City are required to comply with the following guidelines: 1. Organizations are to deposit a copy of all documents which govern their operation at the Parks and Recreation office along with their application so that those documents may be available for public review. 2. Organizations are to make all information concerning the governance of their programs available to City staff and program participants upon request. 3. Meetings of the organization’s governing body, except those which deal with personnel issues or litigation, are to be publicized in advance and open to all program participants, City staff and the public. 4. The election of the organization’s governing body is to be a process which is open to all adult program participants and to all parents of youth program participants. Elections will be conducted annually. 5. Head coaches working in youth sports organizations are to be trained and certified through a program deemed appropriate by the Independent Athletic Association in cooperation with the Parks and Recreation Department. 6. Organizations are to be adequately prepared for dealing with participants that have special economic, physical, or social needs. 7. Organizations are to comply with all local, state, and federal human rights laws which prohibit discrimination against program participants or applicants in any manner. 8. When two or more organizations offer similar programs for similar age groups, they are expected to work together to develop the highest level of programming standards and to A POLICY ESTABLISHING GUIDELINES FOR ISSUANCE OF PARK PERMITS St. Louis Park City Council Agenda Item: 110402 - 4f - Park and Rec Adv Comm Minutes Page 7 of 7 7 assure that children throughout the community are being offered equal opportunities for participation regardless of geographic considerations. 9. When two or more organizations are not able to resolve their differences regarding facility usage, they must present their positions to the Parks and Recreation Advisory Commission at their next scheduled meeting. The Parks and Recreation Advisory Commission will render a decision. 10. All organizations will submit league rosters or participant summaries to the Parks and Recreation Department annually to assist with future athletic facility development needs. 11. Any organization which fails to provide for and follow the guidelines set forth above is subject to payment of the established fees for use of park facilities or revocation of its permit at the discretion of the Director of Parks and Recreation. Priority Usage: 1. City sponsored recreation programs. 2. School District (Athletics Department and Community Education). 3. Organized St. Louis Park athletic associations, teams, or clubs that meet the guidelines. 4. Other St. Louis Park resident teams, individuals or neighborhood organizations. 5. Non-resident teams, or other. Adopted by the Parks and Recreation Advisory Commission 02/08/95; Revised 12/20/95; Revised 4/17/02 St. Louis Park City Council Agenda Item: 110402 - 6a - AOL Restructuring Page 1 of 14 5a. Public Hearing regarding AOL Time Warner Restructuring AOL Time Warner, the parent company of the subsidiary that operates the cable television franchise in St. Louis Park, is restructuring and seeks the City’s approval to transfer the franchise to Time Warner Cable, Inc., a new intermediary company. Recommended Action: Mayor to close the public hearing and set first reading of the attached resolution for November 18. Background: Charlie Meyer received a letter from Kim Roden, Time Warner’s Vice President of Public Affairs, on September 5, 2002 (attached) that includes: • “TWC expressly agrees to assume all of the obligations under our Franchise. • The local management and staff will remain the same. • This transaction will have absolutely no impact on our business policies or practices. • Local management will continue to report to the same executives of Time Warner Cable.” AOL Time Warner, the parent company, has reached an agreement to restructure Time Warner Entertainment Company (TWE) which was partially owned by AT&T. (See “The Big Tweak” Multichannel News article for details). Joel Jamnik of Campbell Knutson has reviewed the Federal Communications Commission (FCC) Form 394 pertaining to ownership transfers that accompanied Ms. Roden’s September 5 letter. Here is the conclusion of his report (attached): “Based strictly on the information made available to us at the time of this review, we conclude that the proposed restructured company will have the necessary legal, technical and financial qualifications, based on the standards of review established by the applicable law and City franchise, to continue to meet the terms and conditions of the City franchise, and that consequently the request by Time Warner Cable to approve the transfer should be approved.” In addition, Mr. Jamnik voiced these opinions to City staff in a conference call: • Individual franchisers won’t be able to effectively evaluate the restructuring; the FCC would have to decide if the new intermediary company is too thinly capitalized. • It could be argued that the parent company is reducing the financial commitment to the cable unit (by raising more capital). • There is some uncertainty about what will happen with the new intermediary because there will be an initial public offering when the telecommunications market is weak. Issues: According to federal law the City must approve or deny the transfer request based on the legal, technical and financial qualifications of the buyer. The parent company has the legal, technical St. Louis Park City Council Agenda Item: 110402 - 6a - AOL Restructuring Page 2 of 14 and financial ability to operate the current franchise and will still control the intermediate company, Time Warner Cable, Inc., so the City doesn’t have any clear basis to deny a transfer. Some cities (Bloomington and Fridley) are not considering the restructuring as a transfer, and are not holding public hearings on this matter. Other financial issues and AOL Time Warner news reports: The City of St. Louis Park has hired Lewis & Associates to conduct an audit of Time Warner’s St. Louis Park franchise fees, and while that report is close to completion, staff doesn’t expect that it to be relevant to this transfer request. Also, there have been news reports about AOL Time Warner restating $190 million of revenue attributed to the AOL division between September 2000 and June 2002 (article attached). Staff doesn’t see these accounting activities of the parent company as related to the transfer request. Recommendation: Staff recommends that the Mayor close the Public Hearing and set first reading of the attached resolution for November 18, 2002. Attachments: Joel Jamnik letter of October 29, 2002, with recommended Resolution Kim Roden letter of September 5, 2002 The Big Tweak (Multichannel News article: August 26, 2002) AOL-TW Restates Two Years of Results (Reuters article of October 23, 2002) Prepared By: Reg Dunlap & John McHugh Approved By: St. Louis Park City Council Agenda Item: 110402 - 6a - AOL Restructuring Page 3 of 14 October 29, 2002 Mr. Charles Meyer City Manager City of St. Louis Park 5005 Minnetonka Blvd. St. Louis Park, MN 55416 Re: Proposed Corporate Restructuring of City Cable Franchisee Dear Charlie: The City's current cable franchisee has filed the requisite forms under federal and state law seeking city approval of a corporate restructuring. The proposed restructuring raises the same legal and policy issues for the City as the Spring 2000 merger involving America Online and Time Warner, because under the federal and state regulatory framework for cable operators the restructuring is processed as a transfer of the franchise. When local cable franchises are transferred from one company to another, the 1996 Telecommunications Act proscribes a role for the local units of government that issue franchises. Section 617 of the 1996 Act (which has been coded as 47 U.S.C. §537) provides: A franchising authority shall, if the franchise requires franchising authority approval of a sale or transfer, have 120 days to act upon any request for approval of such sale or transfer that contains or is accompanied by such information as is required in accordance with Commission regulations and by the franchising authority. If the franchising authority fails to render a final decision on the request within 120 days, such request shall be deemed granted unless the requesting party and the franchising authority agree to an extension of time. Under Minnesota law, local franchise authorities must approve a sale or transfer of a franchise, including a sale or transfer by means of a fundamental corporate change (including mergers, etc.). Stock sales or transfers are specifically subjected to the requirements of the statute, Minn. Stat. §238.083. Public hearing provisions and decisional timelines are specified by the law, including in Subd. 4 that: "Within 30 days after the public hearing, the franchising authority shall St. Louis Park City Council Agenda Item: 110402 - 6a - AOL Restructuring Page 4 of 14 approve or deny, in writing, the sale or transfer request. The approval must not be unreasonably withheld." (emphasis added) Time Warner Cable has provided the City with the information required by the Federal Communications Commission (FCC) as part of the sale or transfer review process, and has asked the City to review the request and to pass a resolution consenting to the proposed change in control of the franchise. The review of a transfer request is significantly different under state and federal law than a request for renewal or a request for a new franchise. Generally speaking, the franchising authority may only approve or deny the request. Grounds for denial are limited to finding that the transferee lacks the requisite financial, legal or technical qualifications to fully perform the franchise terms. Legal Qualifications Unlike the review conducted in 2000, the proposed restructuring will change the legal structure of the current operator of the cable television system, Time Warner Cable, although there will likely be little or no outward appearance of the change to cable subscribers. Currently, Time Warner Cable is the operating name of the cable television businesses controlled by AOL Time Warner Inc. ("AOLTW"). Those businesses, however, are held in a variety of ownership structures. For instance in St. Louis Park, the legal entity is Nortel Cable Associates, L.P., doing business as Time Warner Cable. The restructuring will consolidate all of the separate operating subsidiaries under a single corporate structure, known as Time Warner Cable Inc. As stated by the Company in its Form 394 submission, "on or before closing of the franchise transfer, Time Warner Cable Inc. will be duly qualified to transact business in the state where the cable system operates." If this assertion is accurate, the proposed restructuring will not affect Time Warner Cable's legal authority to continue to operate cable television systems within Minnesota and the City. Consequently, based on our review of the legal qualifications of the relevant corporate entities, we conclude that it would be unreasonable for the City to find that upon closing of the transaction contemplated in the documents accompanying Form 394 that the resulting restructured company would not have the legal qualifications to operate the City's cable television system. Technical Qualifications The technical qualifications standard relates to Time Warner Cable's technical expertise and experience in operating and maintaining cable television systems. Unlike a sale or transfer St. Louis Park City Council Agenda Item: 110402 - 6a - AOL Restructuring Page 5 of 14 where the City's current cable system operator will be divesting itself of its operational interest, and a new operator will be assuming the franchise obligations, in the proposed transfer or merger, the current cable company will continue to operate the system, although its corporate structure will be modified. Further, because the proposed restructuring does not as yet involve the sale or divestiture of any merged-entity assets, there should be no diminution in the technical capabilities of Time Warner Cable related to the merger. Financial Qualifications Recent large scale bankruptcy filings, including several by telecommunications companies such as Adelphia, have heightened concerns regarding any proposed corporate merger or restructuring. However, based on the material provided, and limited strictly to the company's disclosures, we do not believe that the request to transfer can be reasonably withheld based on a lack of financial qualifications. Time Warner Cable will continue to be controlled by AOL Time Warner Inc., and will be comprised of the same number of systems and subscribers as the previous corporate entities. It does not appear that additional debt is being shifted to, or away from, any of the new or modified entities, nor does it appear that any divestiture of assets are immediately contemplated. Consequently, we are without any basis to challenge the assertion in the filing that "this transaction will not result in any changes to the local operation and management of the [cable] systems." (See Exhibit 1, attached to Form 394). Conclusion Based strictly on the information made available to us at the time of this review, we conclude that the proposed restructured company will have the necessary legal, technical and financial qualifications, based on the standards of review established by the applicable law and City franchise, to continue to meet the terms and conditions of the City franchise, and that consequently the request by Time Warner Cable to approve the transfer should be approved. A copy of the proposed Council Resolution approving the transfer is enclosed. Very truly yours, Campbell Knutson Professional Association By:__________________________ Joel J. Jamnik JJJ:cjh St. Louis Park City Council Agenda Item: 110402 - 6a - AOL Restructuring Page 6 of 14 RESOLUTION NO. ______ Date _____________________ Resolution ___________________ Motion By ________________ Seconded By __________________ A RESOLUTION PROVIDING FOR THE CHANGE IN CONTROL OF A CABLE TELEVISION FRANCHISEE WHEREAS, the City Council of St. Louis Park (“Franchising Authority”) has granted a franchise to a subsidiary (the “Franchisee”) of AOL Time Warner Inc. to provide cable television service; WHEREAS, the Franchisee and AOL Time Warner propose a corporate restructuring, and WHEREAS, federal and state law requires the Franchising Authority to review the proposed transfer to determine whether the restructured company will have the legal, technical and financial capabilities to continue to provide cable television service within the City in accordance with the terms and conditions of the existing franchise NOW, THEREFORE, THE ST. LOUIS PARK CITY COUNCIL RESOLVES AS FOLLOWS: 1. To the extent required under the terms of the Franchise and state and federal law, the City Council of St. Louis Park, Minnesota, as the Franchising Authority, authorizes and consents to the proposed change in control of the Franchisee resulting from the Transaction. St. Louis Park City Council Agenda Item: 110402 - 6a - AOL Restructuring Page 7 of 14 2. The Franchisee shall remain responsible for all obligations under the Franchise. 3. The foregoing consent shall be effective upon the closing of the Transaction. ADOPTED this _______ day of ______________, 2002. CITY OF ST. LOUIS PARK By: ____________________________ ATTEST: Jeffrey W. Jacobs, Mayor _______________________________ Cynthia Reichert, City Clerk Reviewed for Administration: _______________________________ Charles Meyer, City Manager St. Louis Park City Council Agenda Item: 110402 - 6a - AOL Restructuring Page 8 of 14 St. Louis Park City Council Agenda Item: 110402 - 6a - AOL Restructuring Page 9 of 14 St. Louis Park City Council Agenda Item: 110402 - 6a - AOL Restructuring Page 10 of 14 St. Louis Park City Council Agenda Item: 110402 - 6a - AOL Restructuring Page 11 of 14 St. Louis Park City Council Agenda Item: 110402 - 6a - AOL Restructuring Page 12 of 14 St. Louis Park City Council Agenda Item: 110402 - 6a - AOL Restructuring Page 13 of 14 THE BIG TWEAK AOL, AT&T Unwind TWE Partnership By MIKE FARRELL Multichannel News 8/26/2002 A little more than three months after taking the helm of AOL Time Warner Inc. from cable legend Gerald Levin, CEO Richard Parsons has managed to achieve what his former boss couldn't for nearly 10 years — he's unwound the Time Warner Entertainment L.P. partnership. Parsons, known for his smooth negotiating tactics and personable manner, must have been pushing those attributes to the limit over the past few weeks, as he hammered out a deal that not only removes a major albatross from around AOL Time Warner's corporate neck, but manages to win a long-sought broadband cable carriage deal for its America Online Internet service. The agreement didn't come cheap. In addition to a $2.1 billion cash payment, AOL will surrender $1.5 billion of its own stock, and a 21 percent interest in a new cable entity — Time Warner Cable Inc. — with 10.8 million subscribers and an estimated value of $5.4 billion. AT&T Corp., AOL's partner in TWE, surrenders its 27.6 percent stake in the entity. In return AOL Time Warner will get full ownership of its Home Box Office Inc., and Warner Bros. studio assets and will assume TWE's interests in The WB broadcast-TV network and cable channels Court TV and Comedy Central. In addition, AOL gets a three-year broadband carriage deal for its Internet service over AT&T Broadband cable systems — and eventually AT&T Comcast Corp. systems, when the Broadband unit completes its planned merger with Comcast Corp. later this year. It would be the first carriage deal for AOL Broadband, beyond corporate sibling Time Warner Cable. Time Warner Cable Inc. is expected to be spun off in an initial public offering in the first half of 2003. Until that time, AT&T Comcast will hold its interest in the cable unit in a trust, to avoid any regulatory hang-ups. The deal addresses what has been one of Parsons' top priorities since assuming the CEO job in May and removes a major drag on AOL Time Warner's stock. Investors also appeared to be in favor of the deal, driving up the stocks of all three companies involved. St. Louis Park City Council Agenda Item: 110402 - 6a - AOL Restructuring Page 14 of 14 AOL-TW Restates Two Years of Results Reuters Wednesday, October 23, 2002; 9:14 PM By Reshma Kapadia NEW YORK (Reuters) - AOL Time Warner Inc. , the world's largest media company, on Wednesday posted a third quarter profit, but said it would restate two years of results -- cutting $190 million in revenues -- due to accounting problems at its embattled America Online division. Investors and analysts were surprised by the restatement but welcomed the company's speedy action only months after AOL Time Warner started an internal review into its online unit's accounting practices. The review started just weeks after the U.S. Securities and Exchange Commission and Justice Department launched their own probes. In July, the company had said it may have improperly accounted for ad deals at America Online totaling $49 million. The company's affirmation of its guidance on 2002 growth targets also boosted sentiment and shares of AOL -- home to "Sex and the City," pop star Madonna and People magazine -- rose 7 percent in heavy after-hours trade to $14.45. "The stock is up because they didn't have to reduce guidance and they provided a little bit of assurance about the scope of impropriety," said SoundView analyst Jordan Rohan. The company said its internal review is continuing. "We have devoted a significant amount of time and resources to our review and, based on the substantial work we have done to date, do not expect any further restatements from it," said Chief Executive Officer Richard Parsons St. Louis Park City Council Agenda Item: 110402 - 7a - Dispatch Contract Page 1 of 4 7a Contract for Public Safety Dispatch 1/1/02 – 12/31/03 A 2 year agreement with LELS Local #220, Public Safety Dispatch: 2002 & 2003. Recommended Action: It is recommended that the City Council adopt the attached resolution approving a Labor Agreement between the City and Law Enforcement Labor Services Inc. (Local #220) for Public Safety Dispatch, establishing terms and conditions of employment for two years: 1/1/02 – 12/31/03. Background: We are pleased to inform you that our last open union contract for 2002 is ready for your approval. The previous contract with our Public Safety Dispatch was for one year and expired 12/31/01. Negotiations on this contract started December 2001. Many hours were spent in negotiation discussing a variety of issues including market wage rates and the flex leave program. After a number of negotiation sessions, we could not reach agreement and in July a mediator was brought in to help with negotiations. At the conclusion of mediation, we remained far apart on issues and certified an impasse with issues listed for arbitration. After several months of no discussion, the Union contacted us and requested another meeting to see if we could work through some of the issues regarding the contract. After two additional negotiation sessions we were able to work through a list of issues and came to agreement on a 2-year contract. The union had a vote on the contract in October, and we are now ready to recommend approval by Council. The summary of contract changes are as follows: • Wage 2002: 3.5% increase (consistent with our other employee groups). • Wage 2003: 3% increase (consistent with the 2003 budget recommendation). • 2003: an additional 14 cents per hour was added to all steps of the Dispatch base for a market adjustment to bring the group up to average base salary in comparable cities. • Insurance 2002: contribution increase to $510/mo. ($70/mo. increase), consistent with other non-supervisory employees for 2002. • Insurance 2003: the cafeteria benefit plan contribution by the employer will be the same as other non-exempt (non-supervisory employees). • Implement the flex leave program on 1/1/03, (changing from the sick/vacation plan to flex leave). The flex leave program is the same program in place for other city employees on the plan. • Vacation accrual adjusted in 2002 to catch up with other employee groups on the vacation/sick leave program, prior to conversion to flex leave. 2 Listed below are the details of the changes to the proposed contract for 2002 and 2003 for Public Safety Dispatch. The proposed contract is on file with the City Clerk. More detail is available upon request. 1. Duration 2 years 1/1/02 – 12/31/03 2. Wages 3.5% increase effective 1/1/02 (consistent with other employee groups). 3% increase effective 1/1/03 Market adjustment for Public Safety Dispatch adding 14 cents per hour on all steps, added to the base wage after the 3% increase for 2003 (Metro Salary Survey Group V Market comparison). 3. 2002 - Insurance increase $70/mo from $440 to $510, effective 1/1/02 (consistent with other employee groups). 2003 – Insurance: The Employer contribution will be set at the same dollar amount contributed by the Employer to non-exempt employees of St. Louis Park. 4. 19.1 Vacation: agree to change as follows: current 1/1/02 0 – 5 years 80 hours no change 6 – 15 years 120 hours 6 – 10 years 120 hours 16 + years 160 hours over 10 years: an additional 8 hours per year not to exceed 160 hours per year. 5. Add Flex Leave package – starting January 1, 2003: The flex leave program is the same program offered to other non-exempt (non-supervisory) employees. Bringing in flex leave requires a significant number of other changes to the contract on January 1, 2003 including the following. • Delete 9.5 which states “One continuous vacation period shall be selected on the basis of seniority until May 15 of each calendar year.” • Delete Article 19 Vacation • Change Article 20 Holidays from 96 hours to 80 hours • Delete Article 21 Sick Leave • Delete Article 22 Severance Pay 6. Short term disability program 3 The City offers Short Term Disability as part of the flex leave program. Effective January 1, 2003, the Employer provides a short-term disability (STD) program for non- exempt (non-supervisory) Employees who have successfully completed probation, as a supplement to the flex leave program. The STD program is administered by the Employer in the same manner as other Employee groups in the non-supervisory (non- exempt) Flex Leave Program. The City Manager makes final decisions regarding the Short Term Disability Program and the decisions regarding the program may be grieved and not subject to arbitration. 7. Article 23 Funeral Leave Existing contract language expires on 12/31/02 and replaced with: Effective January 1, 2003 funeral leave will be eliminated. Employees in the positions of Public Safety Dispatch who worked for the Employer on January 1, 2003 will be issued a one time credit of 3 work days (24 hours) of funeral leave to be placed in a funeral leave bank. This funeral leave bank may be granted on account of a death in the immediate family of the employee. For purposes of administering this section only, immediate family includes mother, father, siblings, spouse, children and grandparents and spouse’s mother, father, siblings and grandparents. Once the funeral leave bank is used it will not be replaced. If not used, it will not be converted to pay or any other type of leave. Other items – cleaning up contract language: 8. Recognition: change to 179A.03, Subdivision 8 9. Change the Public Employment Relations Board to Bureau of Mediation Services (in grievance section) Recommendation: It is recommended that the City Council adopt the attached resolution approving a Labor Agreement between the City and Law Enforcement Labor Services Inc. (Local #220), establishing terms and conditions of employment for the duration of 1/1/02 – 1/31/03. Attachments: Resolution Prepared by: Nancy Gohman, Human Resources Director Approved by: Charles W. Meyer, City Manager 4 RESOLUTION NO. 02- RESOLUTION APPROVING THE LABOR AGREEMENT BETWEEN THE CITY OF ST. LOUIS PARK AND LAW ENFORCEMENT LABOR SERVICES INC (LOCAL #220) PUBLIC SAFETY DISPATCH JANUARY 1, 2002–DECEMBER 31, 2003 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 Enforcement Labor Services Inc. (Local #220) for our Public Safety Dispatch, effective January 1, 2002 – December 31, 2003. Reviewed for Administration: Adopted by the City Council , 2002 City Manager Mayor Attest: City Clerk St. Louis Park City Council Agenda Item: 110402 - 7b - 2003 Benefits Page 1 of 5 7b. Establishing employer contribution for employer-provider cafeteria style benefit programs for 2003. Each year, the City Council is asked to approve an amount for Employer contribution to the Cafeteria Benefit Plan. The amount is based on market and increased insurance premiums. Recommended Action: Motion to adopt resolution approving a $40/mo. increase in the employer contribution for the cafeteria benefit plan for 2003 Background: Each fall, the Council sets the benefit contribution for St. Louis Park employees to use in our cafeteria benefit plan. The City holds “open enrollment” information sessions in mid-November, allowing employees select benefits for the upcoming plan year. Our cafeteria benefit plan offers choices in the following areas: • Health – 3 plans offered by Medica with 4 tier options of coverage to select from: employee, employee & child(ren), employee & spouse and family • Basic life coverage offered through Prudential Life • Supplemental life insurance • Dependent life insurance • Dental offered through Delta for employee or family coverage • Long-term disability offered through Fortis • Flexible spending accounts allowing employees to set aside funds pre-tax for qualified medical expenses up to $2,400, or daycare up to $5,000 • Deferred compensation 4 plan options (457 plan for retirement savings pre-tax). Benefit Analysis for 2003: Medical Insurance: As the cost of health insurance continues to rise significantly, we continue to work closely with the LOGIS Healthcare Group to provide quality insurance benefits for our employees. For the 2003 plan, LOGIS was required to bid medical coverage. Bids for 2003 were received from the following: Medica initial increase in bid was 13.6%, renegotiated to 10.75% Preferred One 22% increase Health Partners declined to bid Blue Cross Blue Shield did not finalize a bid since the increase would be +30% PEIP – Public Employees Insurance Program did not bid The LOGIS Healthcare Group selected Medica to continue as the provider for 2003. The LOGIS Healthcare board negotiated with Medica and was able to reduce the initial bid to 10.75% for 2003. In order to lower the premium increase from 13.6% to 10.75% a change was made to prescription coverage. In 2002 the co-pay for prescriptions was $11. For 2003, Medica allowed an overall reduction of premium by moving to a 20% co-insurance per RX unit St. Louis Park City Council Agenda Item: 110402 - 7b - 2003 Benefits Page 2 of 5 or refill with a $10 minimum co-pay to $25 maximum depending on the cost and Medica formulary listing. If the prescription is not on Medica’s formulary list, the employee must pay the full amount of the medication. This change in prescription will increase employees awareness and involvement in prescription cost when working with their physician to select medications. The 10.75% is well behind the market average trend for medical increase for 2003. Increase in medical insurance on average is approximately 16% for 2003, with many other public sector employers realizing a 25%+ increase in premiums. 2003 rates are as follows: Medica High 2002 2003 Single $297.79 $329.83 Emp & Spouse $636.00 $704.43 Emp & Child(ren) $600.81 $665.46 Family $785.25 $869.74 Elect 2002 2003 Single $ 272.02 $301.29 Emp & Spouse $ 580.96 $643.47 Emp & Child(ren) $ 548.80 $607.85 Family $ 717.28 $794.46 Low 2002 2003 Single $ 250.15 $277.07 Emp & Spouse $ 534.24 $591.72 Emp & Child(ren) $ 504.68 $558.98 Family $ 659.61 $730.58 Dental: We are on the 2nd year of a two-year bid with Delta on dental insurance. The 2003 rates reflect an 8% increase in dental premiums. For plan savings, we purchase dental insurance jointly with the Cities of Burnsville, Plymouth and Apple Valley. Dental Rates 2003 Delta dental 1/1/02 1/1/03 Single $32.45 $35.05 Family $72.65 $78.55 Life: No increase in rates. We are in a 5-year rate lock on life insurance with our plan through Prudential. Long Term Disability: No rate increase for 2003 through Fortis. St. Louis Park City Council Agenda Item: 110402 - 7b - 2003 Benefits Page 3 of 5 Setting Employer contribution for 2003 In order to determine the Employer contribution for 2003, we ran an analysis on the impact of the out of pocket cost to our employees for medical insurance for 2003. We examined at the number of employees enrolled in each plan and tier, then calculated the impact of the average cost of the increase from 2002 to 2003 to all employees. Using the above stated methodology, the average cost increase to employees in the plan from 2002 to 2003 is $40/month (not including increase in dental premium). To minimize the impact of the cost of health premiums taking a “bite” out of wages, a $40 per month increase in Employer contribution is recommended for Cafeteria benefit Plan as follows: Employer contribution to benefit program 2002 2003 Exempt employees (not eligible for overtime) $610/mo $650/mo. Non-exempt employees (overtime eligible) $510/mo. $550/mo. Three of our union contracts (Local 49 Maintenance, Police Officers & Support Services Agents and Public Safety Dispatch) are settled for 2003 with language stating they agreed to receive the same increase to Employers contribution as other employees in 2003. If approved, the 3 unions will also receive the $40/mo increase. Firefighters and Sergeants contracts are open for 2003 and will need to wait until we have an agreement on their contract to set their contribution. Recommendation: Increase Employer contribution +$40/month Based on information above, we recommend approval of the following benefit levels for employees and the City Manager effective 1/1/2003. A) Full-time, non-exempt $550/month B) Full-time, non-union exempt which includes the City Manager $650/month, City to continue to provide LTD as policy allows and term life insurance at 1 ½ the employees annual salary. C) Part-time, benefit earning, non-union employees to receive 50% of full-time employees (Qualifications for benefit eligibility as determined by City Manager.) Please let me know if additional information is needed regarding this matter. Attachments: Resolution Prepared by: Nancy Gohman, Human Resources Director Approved by: Charles W. Meyer, City Manager St. Louis Park City Council Agenda Item: 110402 - 7b - 2003 Benefits Page 4 of 5 RESOLUTION NO. 02- RESOLUTION ESTABLISHING EMPLOYER CONTRIBUTION FOR THE CAFETERIA BENEFIT PLAN FOR NON-EXEMPT AND NON-UNION EXEMPT EMPLOYEES INCLUDING THE CITY MANAGER FOR 2003 WHEREAS, the City Council has established a cafeteria-style employee group benefit plan that provides an effective means for providing employee group benefits, and WHEREAS, the City Council recognizes an increase in benefit premiums for 2003 and desires to increase the contribution levels for 2003. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis Park: 1. The City Manager shall continue to administer a cafeteria-style employee group benefits program in accordance with benefit plan documents. 2. Effective January 1, 2003, the monthly contribution of benefit dollars contributed by the employer for non-union non-exempt employees, working at least 30 hours per week, be set at $550/month. This contribution amount is also effective 1/1/03 for full-time positions in Local 49 Maintenance, LELS #206 Patrol and Support Services Agents and LELS #220 Dispatch in accordance with contract language. 3. Effective January 1, 2003, the monthly contribution of benefit dollars for non-union employees working 20 through 29 hours per week be set at 50% of the exempt or non-exempt employee monthly contribution level, based on status of position as determined by the City Manager. 4. The monthly City contribution of benefit dollars for non-union exempt employees including the City Manager shall be set at $650/month. Additionally, the City will continue to provide, at no cost to such employees, term-life insurance at one and one- half times the annual salary and a long-term disability plan or cost equivalent as plan allows. 5. The appropriate City officials are hereby authorized and directed to deduct the balance of any sum premium from the compensation of an employee or officer and remit the insurer under an approved contract the employee or officer and share of any such premium. Adopted by the City Council Reviewed for Administration: Adopted by the City Council November , 200 City Manager Mayor St. Louis Park City Council Agenda Item: 110402 - 7b - 2003 Benefits Page 5 of 5 Attest: City Clerk St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 1 of 26 7c. Cedar Trails Condominium Association Housing Improvement Area Second reading of ordinance to establish the Cedar Trails Condominium Association Housing Improvement Area and related actions to implement project. Recommended Action: Four motions are recommended. 1. Motion to approve second reading of an ordinance to establish the Cedar Trails Housing Improvement Area, approve summary and authorize publication. 2. Motion to approve Resolution to impose fees. 3. Motion to authorize execution of Contract for Private Development and any other related documents, by the Mayor and City Manager, between the City and the Cedar Trails Condominium Association. 4. Motion to approve Resolution establishing internal loan fund. Background: On October 7, 2002, the Council held a public hearing to establish Cedar Trails Condominium Association as a Housing Improvement Area (HIA). The association petitioned the City to establish the area for the purpose of financing needed common area improvements. A loan of $1,365,742, at 6.3% interest rate with a 10-year term would be repaid by fees imposed upon unit owners. Fees would be payable with real estate taxes over a 10 year period beginning in 2004, or owners may opt to prepay the assessed fee prior to the defined date of November 20, 2003. During the hearing two people spoke in support of creation of the HIA. The City Council approved the first reading of an ordinance to establish Cedar Trails HIA by a 6-0 vote and scheduled the second reading for November 4, 2002. The staff report for the October 7, 2002 public hearing provides detailed background info and is attached. At the October 7, 2002 public hearing staff indicated that the contract for private development and internal loan fund resolution would be completed and provided for review by Council at the time of the second reading of the ordinance. This report will cover these items as well as actions required to implement the HIA. Staff and counsel from Kennedy & Graven will be in attendance. Ordinance Establishing the Cedar Trails Housing Improvement Area The ordinance establishes a housing improvement area within which housing improvements are made or constructed and the costs of the improvements are paid in whole or in part from fees imposed within the area. The ordinance documents the process and provides the finance tool for common area improvements. Significant issues addressed in the ordinance are: • The City’s goal to maintain and preserve City’s housing stock and stabilize neighborhoods. • A majority of owners filed a petition requesting a public hearing regarding establishment of the HIA. St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 2 of 26 • The association has documented that without establishment of HIA, the common area improvements could not be made. • A public hearing was conducted on October 7, 2002. The City is required to publish a summary of the ordinance (attached) and mail the ordinance summary to owners of all units within five days of adoption of the ordinance. Resolution to Impose Fees This document ensures that the City meets statutory requirements of imposing fees to unit owners for repayment of the association loan. The key issues are: • Fees will be imposed based on ownership percentage of units and will be payable beginning in 2004. Unit owners have been notified of their individual liability. • Fees will be payable with real estate tax payments. • The process for prepayment of fees by owners is described. • A written objection process allows individual owners to file an objection of inclusion in the area and subjection of fees. • A veto period follows the adoption of the ordinance, where 35% of the owners, or 35% of tax capacity, may file written objections. When this occurs the statute requires that the HIA not be granted. The City is required to mail a summary of the resolution to owners of all units within five days of its approval along with a notice of the veto process. Internal Loan Fund Resolution The loan to the association would be an internal loan using the City/EDA Development Fund, rather than issuing bonds. This resolution formalizes the loan mechanism and includes: • A method of segregating loan funds from city funds by establishing a project fund. • Total loan amount is $1,365,742. $1,326,833 for construction, $23,000 for administrative, legal, financing, and inspecting architect fees, and $15,909 for capitalized interest prior to receipt of fee revenues. • 10-year term, 6.3% interest, accrual begins January 1, 2004. • Disbursement will be made to association upon written certification that items proposed for payment are complete and necessary. Contract for Private Development The City would enter into the Contract for Private Development with the Cedar Trails Condominium Association. City staff, representatives from Kennedy & Graven, Ehlers & Associates, Association Board members, Park Midwest Property Management and their attorney have had conversations that resulted in the attached agreement. St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 3 of 26 Kennedy & Graven has prepared the attached Summary of Contract for Private Development as an overview of the agreement. Major business points of the agreement are: • Association will provide ongoing financial reports & records for term of the loan • Association will provide its assets in the form of dues, fees, assessments and covenants as security to the City • Association will retain a replacement reserve fund of at least $375,000 for the term of the loan. • Association will retain professional property management for the term of loan. • Association will ensure improvements are completed according to specific requirements. • Monies will be disbursed as work is verified by City representatives as being completed. • Association will provide notice of fee to perspective buyers. Recommendation: Staff recommends that the following four actions are approved for the implementation of the housing improvement area project: 1. Motion to approve second reading to adopt ordinance to establish the Cedar Trails Condominium Association Housing Improvement Area, approve summary and authorize publication. 2. Motion to approve resolution to impose fees. 3. Motion to approve resolution to establish internal loan fund. 4. Motion to authorize execution of Contract for Private Development and any other related documents, by the Mayor and City Manager, between the City and Cedar Trails Condominium Association. Attachments: Ordinance establishing the Cedar Trails HIA Summary of Ordinance for publication Resolution approving a Housing Improvement Fee for the Cedar Trails HIA. Notice to residents of Cedar Trail Condominiums regarding the HIA and imposition of fees Resolution to establish internal loan fund Kennedy & Graven summary of Contract for Private Development Contract for Private Development October 7, 2002 staff report Prepared by: Tom Harmening, Community Development Director, Kathy Larsen, Housing Programs Coordinator Approved by: Charles W. Meyer, City Manager St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 4 of 26 ORDINANCE NO. ____ AN ORDINANCE ESTABLISHING THE CEDAR TRAILS HOUSING IMPROVEMENT AREA PURSUANT TO MINNESOTA STATUTES, CHAPTER 428A.11 to 428A.21. BE IT ORDAINED by the Council of the City of St. Louis Park as follows: Section 1. Recitals. 1.01. The City of St. Louis Park ("City") is authorized under Minnesota Statutes, Chapter 428A.11 to 428A.21 (the "Housing Improvement Act") to establish by ordinance a housing improvement area within which housing improvements are made or constructed and the costs of the improvements are paid in whole or in part from fees imposed within the area. 1.02. The St. Louis Park City Council (“Council”) adopted a Housing Improvement Area policy on July 16, 2001. 1.03. The City has determined a need to establish the Cedar Trails Housing Improvement Area as further defined herein, in order to facilitate certain improvements to property known as the "Cedar Trails Condominiums” all in accordance with the Housing Improvement Area policy. 1.04. The City has consulted with the Cedar Trails Condominium Association (the “Condominium Association”) and with residents in the Cedar Trails Housing Improvement Area regarding the establishment of the Cedar Trails Housing Improvement Area and the housing improvements to be constructed and financed under this ordinance. Section 2. Findings. 2.01. The Council finds that, in accordance with Section 428A.12, owners of at least 25 percent of the housing units within the Cedar Trails Housing Improvement Area have filed a petition with the City Clerk requesting a public hearing regarding establishment of such housing improvement area. 2.02. The Council has on October 7, 2002 conducted a public hearing, duly noticed in accordance with the Ch. 428A.13, regarding adoption of this ordinance at which all persons, including owners of property within the Cedar Trails Housing Improvement Area, were given an opportunity to be heard. 2.03. The Council finds that, without establishment of the Cedar Trails Housing Improvement Area, the Housing Improvements (as hereinafter defined) could not be made by the condominium association for, or the housing unit owners in, the Cedar Trails Condominium Association. 2.04. The Council further finds that designation of the Cedar Trails Housing Improvement Area is needed to maintain and preserve the housing units within such area. St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 5 of 26 2.05 The City will be the implementing entity for the Cedar Trails Housing Improvement Area and the improvement fee. 2.06 The Council finds that the Cedar Trails Housing Improvement Area meets each of the approval criteria contained in the Housing Improvement Area Policy (the criteria are listed as 5.01A- 5.01M), including the criterion that a majority of the condominium association owners support the project and the Housing Improvement Area financing. The Condominium Association presented evidence to the Council adequate to demonstrate that these criteria were met, including: presentation to the Council of the petitions described in 2.01 above. Section 3. Housing Improvement Area Defined. 3.01. The Cedar Trails Housing Improvement Area is hereby defined as the area of the City legally described in Exhibit A. 3.02. The Cedar Trails Housing Improvement Area contains 280 housing units as of the date of adoption of this ordinance, along with other garage units and common area. Section 4. Housing Improvements Defined. 4.01. For the purposes of this ordinance and the Cedar Trails Housing Improvement Area, the term "Housing Improvements" shall mean the following improvements to housing units, garages, and common areas within the Cedar Trails Housing Improvement Area: Bituminous Overlay of Parking Lots Partial Replacement of Concrete Curbs, Gutters, Islands, Patios, and Sidewalks Removal of 1 Wood Retaining Wall and Replacement of 5 Walls with Stone Walls. Partial Replacement of Exterior Light Fixtures on Garage Buildings Replacement of Roofs on Several Garage Buildings Installation of Hardie Fiber Cement Siding on Garage Buildings; Replacement on Roofs on Several Buildings Partial Replacement of Common Area Acoustical Ceiling Tile, Vinyl Floor Tile, and Interior Light Fixtures Partial Replacement of Washers and Dryers Renovation of Pool Building Replacement of Oldest Boilers, Pumps, Hot Water Heaters, and Water Softeners Partial Replacement of Risers and Branch Piping Partial Replacement of Windows and Patio Doors 4.02. Housing Improvements shall also be deemed to include: (a) all costs of architectural and engineering services in connection with the activities described in Section 4.01; (b) all administration, legal and consultant costs in connection with the Cedar Trails Housing Improvement Area; and St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 6 of 26 (c) costs of arranging financing for the Housing Improvements under the Housing Improvement Act; and (d) interest on the internal loan as described in Sections 5.04 and 6.01. Section 5. Housing Improvement Fee. 5.01. The City may, by resolution adopted in accordance with the petition, hearing and notice procedures required under Ch. 428A.14, impose a fee on the housing units within the Cedar Trails Housing Improvement Area, at a rate, term or amount sufficient to produce revenues required to provide the Housing Improvements (hereinafter referred to as the "Housing Improvement Fee"), subject to the terms and conditions set forth in this Section. 5.02. The Housing Improvement Fee shall be imposed on the basis of each owned housing and garage unit's Percent of Undivided Interest in Common Areas and Facilities, as described in Exhibit A to Declaration of Apartment Ownership (Condominium) Cedar Trails Condominium, dated as of September 10, 1979. 5.03. The Housing Improvement Fee shall be imposed and payable for a period no greater than 10 years after the first installment is due and payable. 5.04. Housing unit owners shall be permitted to prepay the Housing Improvement Fee in accordance with the terms specified in the resolution imposing the fee. 5.05. The Housing Improvement Fee shall not exceed the amount specified in the notice of public hearing regarding the approval of such fee; provided, however, that the Housing Improvement Fee may be reduced after approval of the resolution setting the Housing Improvement Fee, in the manner specified in such resolution. Section 6. Housing Improvement Area Loan. 6.01. At any time after a contract with the Condominium Association for construction of all or part of the Housing Improvements has been entered into or the work has been ordered, the Council may begin disbursement to the Condominium Association the proceeds of an internal loan (the “loan”) of available City funds in the principal amounts necessary to finance the cost of the Housing Improvements that have not been prepaid, together with administrative costs. 6.02. At any time the City may refinance the loan or any unpaid portion of the loan by issuing bonds secured by Housing Improvement Fees, as outlined by Section 428A.16 of the Housing Improvement Act. Section 7. Annual Reports. 7.01. On August 15, 2003 and each August 15 thereafter until there are no longer any outstanding obligations issued under the Housing Improvement Act in connection with the Cedar Trails Housing Improvement Area, Cedar Trails Condominium Association (and any successor in St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 7 of 26 interest) shall submit to the City Clerk a copy of the condominium association's audited financial statements. 7.02. The Condominium Association (and any successor in interest) shall also submit to the City any other reports or information at the times and as required by any contract entered into between that entity and the City. Section 8. Notice of Right to File Objections. 8.01. Within five days after the adoption of this ordinance, the City Clerk is authorized and directed to mail to the owner of each housing unit in the Cedar Trails Housing Improvement Area: a summary of this ordinance; notice that owners subject to the proposed Housing Improvement Fee have a right to veto this ordinance if owners of at least 35 percent of the housing units within the Cedar Trails Housing Improvement Area file a written objection with the City Clerk before the effective date of this ordinance; and notice that a copy of this ordinance is on file with the City Clerk for public inspection. Section 9. Amendment. 9.01. This ordinance may be amended by the Council upon compliance with the public hearing and notice requirements set forth in Ch. 428A.13. Section 10. Effective Date. 10.1. This ordinance shall be effective 45 days after adoption hereof. First read at a regular meeting of the Council of the City of St. Louis Park held on October 7, 2002 and finally read, approved and adopted and ordered published at a regular meeting of said Council on ________________, 2002. Jeff Jacobs, Mayor ATTEST: Cynthia Reichert, City Clerk St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 8 of 26 EXHIBIT A TO ORDINANCE NO. _____ Legal Description Of The Underlying Land – Cedar Trails Condominiums Tract A, Registered Land Survey No. 1228, files of Registrar of Titles, Hennepin County, Minnesota. Subject to an easement for Cedar Lake Road. Subject to easements for sanitary sewer and storm sewer purposes. That part of the South half of the Southeast quarter of Section 30, Township 29, Range 24, described as commencing at the southeasterly corner of Tract D, Registered Land Survey No. 1228, files of Registrar of Titles, County of Hennepin; thence Northeasterly along the Northwesterly right-of-way line of the Great Northern Railway Company, a distance of 872 feet; thence Northwesterly, at a right angle, 190 feet; thence Southwesterly at a right angle 793.08 feet to the point of beginning; thence Northwesterly, deflecting to the right 72 degrees, 42 minutes, a distance of 162.4 feet; thence Westerly deflecting to the left, 56 degrees, a distance of 174.9 feet; thence Southerly at a right angle 171.98 feet to the Southeast corner of Tract C, Registered Land Survey No. 1228; thence Easterly to the point of beginning, except the Southeasterly 60 feet of the above-described tract. As measured at right angles to the Southerly boundary line thereof, together with a perpetual easement over and across the last described 60 feet, together with a quit claim deed for a permanent easement over and across Tract C, Registered Land Survey No. 1228, files of Registrar of Titles, Hennepin County, Minnesota Subject to an easement for storm sewer purposes. That part of the South half of the Southeast quarter of Section 30, Township 29 North, Range 24 West lying North of the center line of Cedar Lake Road and West of a line drawn Southerly from and perpendicular to the North line of said South half of the Southeast quarter from a point in said North line distant 664.00 feet East of the Northwest corner of said South half of the Southeast quarter, except the North 200.00 feet of the West 253.00 feet thereof. Subject to an easement for Roadway purposes over and across the Westerly 33.00 feet thereof. Subject to easements for sanitary sewer and storm sewer purposes. St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 9 of 26 SUMMARY OF ORDINANCE NO.______ ESTABLISHING THE CEDAR TRAILS HOUSING IMPROVEMENT AREA. This ordinance establishes the Cedar Trails Housing Improvement Area, which is the area legally described on Exhibit A of the Ordinance, and specifies the "Housing Improvements" that will be constructed in Cedar Trails Housing Improvement Area and financed with the Housing Improvement Fee. This ordinance provides that the City may impose a fee on housing units in an amount sufficient to produce revenues required to provide the Housing Improvements. The fee is set by a separate City Council resolution, but the ordinance lays out the ground rules on how the fee will be determined. Those rules are summarized as follows: • The fee will be imposed based on each unit's percent of undivided ownership interest. • The fee may be prepaid according to the terms set forth in the resolution. • If the fee is not prepaid by November 20, 2003, it will be payable over 10 years. • The fee will be collected at the same time and in the same manner as property taxes. • The total fee for each unit may not exceed the amount specified in the notice of public hearing for the resolution imposing the fee. This ordinance provides that at any time after the City has entered into a contract with the Cedar Trails Condominium Association for construction of the Housing Improvements, or after work has been ordered, the Council may begin disbursement to the Condominium Association of the proceeds of an internal loan of available City funds in the principal amounts necessary to finance the cost of the Housing Improvements that have not been prepaid, together with administrative costs. This ordinance requires that Cedar Trails Condominium Association submit audited financial statements to the City each year while there are outstanding obligations issued under the Act. This ordinance shall take effect 45days after the date of adoption (December 19, 2002) unless owners of at least 35 percent of the housing units in the Cedar Trails Housing Improvement Area file an objection with the City Clerk prior to that effective date. Adopted by the City Council _________, 2002 Jeffrey W. Jacobs /s/ Mayor A copy of the full text of this ordinance is available for inspection with the City Clerk. Published in St. Louis Park Sailor: St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 10 of 26 CITY OF ST. LOUIS PARK RESOLUTION NO. 02-117 RESOLUTION APPROVING A HOUSING IMPROVEMENT FEE FOR THE CEDAR TRAILS HOUSING IMPROVEMENT AREA PURSUANT TO MINNESOTA STATUTES CHAPTER 428A.11 to 428A.21. BE IT RESOLVED by the City Council of the City of St. Louis Park as follows: Section 1. Recitals. 1.01. The City of St. Louis Park ("City") is authorized under Minnesota Statutes Chapter 428A.11 to 428A.21 (the "Housing Improvement Act") to establish by ordinance a housing improvement area within which housing improvements are made or constructed and the costs of the improvements are paid in whole or in part from fees imposed within the area. 1.02. The St. Louis Park City Council adopted a Housing Improvement Area policy on July 16, 2001. 1.03. By Ordinance No. ______ adopted ___________________ (the "Enabling Ordinance"), the Council established the Cedar Trails Housing Improvement Area in order to facilitate certain improvements to property known as the "Cedar Trails Condominiums," all in accordance with the Housing Improvement Area policy. 1.04. In accordance with Section 428A.12 of the Housing Improvement Act, owners of at least 25 percent of the housing units within the Cedar Trails Housing Improvement Area have filed a petition with the City Clerk requesting a public hearing regarding imposition of a housing improvement fee for the Cedar Trails Housing Improvement Area. 1.05. The Council has on October 7, 2002 conducted a public hearing, duly noticed in accordance with Section 428A.13 of the Housing Improvement Act, regarding adoption of this resolution at which all persons, including owners of property within the Cedar Trails Housing Improvement Area, were given an opportunity to be heard. 1.06 The Council finds that the Cedar Trails Housing Improvement Area meets each of the approval criteria contained in the Housing Improvement Area Policy (the criteria are listed as 5.01A- 5.01M), including the criterion that a majority of the condominium association owners support the project and the Housing Improvement Area financing. 1.07. Prior to the date hereof, Cedar Trails Condominium Association (the "Condominium Association") has submitted to the City a financial plan prepared by Reserve Advisors, Inc., an independent third party, acceptable to the City and the Condominium Association, that provides for the Condominium Association to finance maintenance and operation of the common elements in the St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 11 of 26 Cedar Trails Condominiums and a long-range plan to conduct and finance capital improvements therein, all in accordance with Ch. 428A.14. 1.08 For the purposes of this Resolution, the terms "Cedar Trails Housing Improvement Area" and "Housing Improvements" have the meanings provided in the Enabling Ordinance. Section 2. Housing Improvement Fee Imposed. 2.01. The City hereby imposes a fee on each housing unit within the Cedar Trails Housing Improvement Area (the "Housing Improvement Fee"), as specified in Exhibit A attached hereto, which Housing Improvement Fee is imposed on the basis of each housing unit and garage unit’s Percent of Undivided Interest in Common Areas and Facilities, as described in Exhibit A to Declaration of Apartment Ownership (Condominium) Cedar Trails Condominium, dated as of September 10, 1979, and as shown under the heading Undivided Ownership in that Exhibit. 2.02. The owner of any housing unit in the Cedar Trails Housing Improvement Area may prepay the Housing Improvement Fee in total and without interest thereon between the effective date of this resolution and November 20, 2003. The amount of the prepayment is shown under the headings Total Prepayment Fee in Exhibit A, and varies depending upon garage unit ownership. After November 20, 2003, the Housing Improvement Fee shall be imposed on an annual basis as described in 2.03, and housing unit owners shall be permitted to prepay the outstanding principal portion, with accrued interest at the rate of 6.3%, on any date. If a prepayment is made by November 20 of 2004 or any subsequent year, the amount must include interest on the outstanding principal portion of the fee through the end of that calendar year. If a prepayment is made after November 20 of 2004 or any subsequent year, the amount must include interest through the end of the following calendar year. Partial prepayment of the Housing Improvement Fee shall not be permitted. Prepayment must be made to the City Treasurer. 2.03. If the Total Prepayment Fee is not paid between the effective date of this resolution and November 20, 2003, the Housing Improvement Fee shall be imposed as an annual fee, in the amount shown under the heading Annual Fee in Exhibit A. The Housing Improvement Fee shall be imposed in equal installments, beginning in 2004, for a period no greater than 10 years after the first installment is due and payable. The Annual Fee shall be deemed to include interest on the unpaid portion of the total Housing Improvement Fee. Interest shall begin to accrue on January 1, 2004 at an annual interest rate of 6.30% percent per annum. 2.04. Unless prepaid between the effective date of this resolution and November 20, 2003, the Housing Improvement Fee shall be payable at the same time and in the same manner as provided for payment and collection of ad valorem taxes, as provided in Minnesota Statutes Chapters 428A.15 and 428A.05. As set forth therein, the Housing Improvement Fee is not included in the calculation of levies or limits on levies imposed under any law or charter. 2.05 A de minimus fee (less than $5.00) may be imposed by Hennepin County for services in connection to administration required in order for the fee to be made payable at the same time and in the same manner as provided for payment and collection of ad valorem taxes. St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 12 of 26 Section 3. Notice of Right to File Objections. 3.01. Within five days after the adoption of this Resolution, the City Clerk is authorized and directed to mail to the owner of each housing unit in the Cedar Trails Housing Improvement Area: a summary of this Resolution; notice that owners subject to the Housing Improvement Fee have a right to veto this Resolution if owners of at least 35 percent of the housing units within the Cedar Trails Housing Improvement Area file a written objection with the City Clerk before the effective date of this Resolution; and notice that a copy of this ordinance is on file with the City Clerk for public inspection. Section 4. Effective Date. 4.01. This Resolution shall be effective 45 days after adoption hereof. Section 5. Filing of Housing Improvement Fee. 5.01. The City Clerk shall file a certified copy of this resolution together with a final update of Exhibit A hereto to the Hennepin County Director of Taxation to be recorded on the property tax lists of the county for taxes payable in 2004 and thereafter. Approved by the City Council of the City of St. Louis Park this __________ of _________, 2002. Jeff Jacobs, Mayor ATTEST: Cynthia Reichert, City Clerk St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 13 of 26 EXHIBIT A TO RESOLUTION NO. _____ Dues Structure Undivided Ownership Percent of Dues Structure Annual W/O Garage 10 Years Total Prepayment Annual W/Garage 10 Years Total Prepayment Without With Garage Garage 0.2999% 9.60% 592.65 4,095.86 625.85 4,423.96 0.3179% 14.31% 628.23 4,341.69 661.43 4,669.79 0.3265% 0.33% 645.22 4,459.15 678.42 4,787.25 0.3267% 4.57% 645.62 4,461.88 678.82 4,789.98 0.3355% 3.36% 663.01 4,582.06 696.21 4,910.16 0.3426% 0.69% 677.04 4,679.03 710.24 5,007.13 0.3442% 17.21% 680.20 4,700.88 713.40 5,028.98 0.3535% 1.41% 698.58 4,827.90 731.78 5,156.00 0.3622% 7.24% 715.77 4,946.72 748.97 5,274.82 0.3711% 21.52% 733.36 5,068.27 766.56 5,396.37 0.3713% 2.23% 733.75 5,071.00 766.95 5,399.10 0.3800% 3.04% 750.95 5,189.82 784.15 5,517.92 0.3890% 9.73% 768.73 5,312.74 801.93 5,640.84 0.3900% 0.39% 770.71 5,326.39 803.91 5,654.49 0.4155% 1.66% 821.10 5,674.66 854.30 6,002.76 TOTAL 97.28% N/A N/A N/A N/A Garages 0.0168% 2.72% 0 0 33.20 GRAND TOTAL 100.00% St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 14 of 26 NOTICE TO RESIDENTS OF CEDAR TRAILS CONDOMINIUMS REGARDING CEDAR TRAILS CEDAR TRAILS HOUSING IMPROVEMENT AREA AND HOUSING IMPROVEMENT FEE On November 4, 2002, the City Council of the City of St. Louis Park adopted Ordinance No. ____, establishing the Cedar Trails Housing Improvement Area, and Resolution No. _____ imposing a housing improvement fee to finance various housing improvements in that area, all pursuant to Minnesota Statutes, Chapter 428A.11 to 428A.21 (the "Act"). Owners of more than 25 percent of the housing units in Cedar Trails Housing Improvement Area filed petitions with the City Clerk requesting a public hearing regarding both the ordinance and the fee resolution. The public hearings for the ordinance and the fee resolution were held on October 7, 2002. Within 5 days after adoption of the ordinance and the resolution, the City is required under the Housing Improvement Act to mail this notice to owners of each housing unit in the affected area. Following is a summary of the ordinance and the resolution, and some important information about your rights as an owner of a housing unit in Cedar Trails Housing Improvement Area. SUMMARY OF ORDINANCE NO. ____ Affected Area: The ordinance establishes Cedar Trails Housing Improvement Area, which is the area legally described on Exhibit A. Housing Improvements: The ordinance specifies the "Housing Improvements" that will be constructed in Cedar Trails Housing Improvement Area and financed with the Housing Improvement Fee. Those improvements are defined as follows: Bituminous Overlay of Parking Lots Partial Replacement of Concrete Curbs, Gutters, Islands, Patios, and Sidewalks Removal of 1 Wood Retaining Wall Replacement of 5 Walls with Stone Walls Partial Replacement of Exterior Light Fixtures on Garage Buildings Replacement of Roofs on Several Garage Buildings Installation of Hardie Fiber Cement Siding on Garage Buildings Replacement on Roofs on Several Buildings Partial Replacement of Common Area Acoustical Ceiling Tile, Vinyl Floor Tile, and Interior Light Fixtures Partial Replacement of Washers and Dryers Renovation of Pool Building Replacement of Oldest Boilers, Pumps, Hot Water Heaters, and Water Softeners Partial Replacement of Risers and Branch Piping Partial Replacement of Windows and Patio Doors Housing Improvement Fee: The ordinance provides that the City may impose a fee on housing units in an amount sufficient to produce revenues required to provide the Housing Improvements. The fee is set by a separate City Council resolution (see below), but the ordinance lays out the ground rules on how the fee will be determined. Those rules are summarized as follows: • The fee will be imposed based on each unit's percent of undivided ownership interest, as described in Exhibit A to Declaration of Apartment Ownership (Condominium) Cedar Trails Condominium. • The fee may be prepaid according to the terms set forth in the resolution. • If the fee is not prepaid by November 20, 2003, it will be payable over a period of 10 years. • The fee will be collected at the same time and in the same manner as property taxes. St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 15 of 26 • The total fee for each unit may not exceed the amount specified in the notice of public hearing for the resolution imposing the fee. Financing: The ordinance provides that at any time after the City has entered into a contract with the Cedar Trails Condominium Association for construction of the Housing Improvements, or after work has been ordered, the Council may begin disbursement to the Condominium Association of the proceeds of an internal loan of available City funds in the principal amounts necessary to finance the cost of the Housing Improvements that have not been prepaid, together with administrative costs. At any time the City may refinance the loan or any unpaid portion of the loan by issuing bonds secured by Housing Improvement Fees, as outlined by Section 428A.16 of the Act. Annual Report: The ordinance requires that Cedar Trails Condominium Association submit audited financial statements to the City each year while there are outstanding obligations issued under the Act. SUMMARY OF RESOLUTION NO. ____ Fee Imposed: The resolution describes the total Housing Improvement Fee for each housing unit, which is based on that unit's percentage share of ownership interest in the Cedar Trails Condominiums. The total cost of the Housing Improvements is: $1,366,000, including administrative costs. The annual fee per unit ranges from $592.65 to $854.30, as shown on Exhibit A to the resolution. Prepayment: The fee may be prepaid in total, without interest, before November 20, 2003, after which it may be prepaid in total in an amount equal to outstanding principal plus accrued interest. Prepayments made before November 20 of 2004 and subsequent years must include accrued interest through year end of the current year, while prepayments made after November 20 of 2004 and subsequent years must include accrued interest through year end of the following year. Annual Payment: For housing unit owners who do not prepay the fee before November 20, 2003, an annual fee will be imposed beginning in 2004 for a period no greater than 10 years. The fee will include interest on an internal loan made by the City at a rate of 6.30%, beginning in January of 2004. County Fee: An additional fee of less than $5.00 may be imposed by Hennepin County for administrative services in order for the fee to be made payable at the same time and in the same manner as provided for payment and collection of ad valorem taxes. NOTICE OF RIGHT TO FILE OBJECTIONS Housing unit owners subject to the housing improvement fee have a right to veto either the ordinance, the fee resolution, or both if owners of at least 35 percent of the housing units within Cedar Trails Housing Improvement Area file an objection with the City Clerk before the effective date of the ordinance or the resolution. The key dates are as follows: Ordinance and Resolution adopted: November 4, 2002 Resolution and Ordinance effective and veto objections filing deadline: December 19, 2002 City deadline to prepay fee in total without interest: November 20, 2003 FURTHER INFORMATION St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 16 of 26 Copies of Ordinance No. _____ and Resolution No. _____are on file with City Clerk for public inspection (The fee for each unit is attached as Exhibit A to the resolution). If you have questions about the Cedar Trails Housing Improvement Area or the housing improvement fee, contact Kathy Larsen, Housing Program Coordinator, at 952-924-2196. Dated: _____________, 2002 St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 17 of 26 EXHIBIT A TO NOTICE TO RESIDENTS OF CEDAR TRAILS CONDOMINIUMS REGARDING CEDAR TRAILS CEDAR TRAILS HOUSING IMPROVEMENT AREA AND HOUSING IMPROVEMENT FEE Legal Description Of The Underlying Land – Cedar Trails Condominiums Tract A, Registered Land Survey No. 1228, files of Registrar of Titles, Hennepin County, Minnesota. Subject to an easement for Cedar Lake Road. Subject to easements for sanitary sewer and storm sewer purposes. That part of the South half of the Southeast quarter of Section 30, Township 29, Range 24, described as commencing at the southeasterly corner of Tract D, Registered Land Survey No. 1228, files of Registrar of Titles, County of Hennepin; thence Northeasterly along the Northwesterly right-of-way line of the Great Northern Railway Company, a distance of 872 feet; thence Northwesterly, at a right angle, 190 feet; thence Southwesterly at a right angle 793.08 feet to the point of beginning; thence Northwesterly, deflecting to the right 72 degrees, 42 minutes, a distance of 162.4 feet; thence Westerly deflecting to the left, 56 degrees, a distance of 174.9 feet; thence Southerly at a right angle 171.98 feet to the Southeast corner of Tract C, Registered Land Survey No. 1228; thence Easterly to the point of beginning, except the Southeasterly 60 feet of the above-described tract. As measured at right angles to the Southerly boundary line thereof, together with a perpetual easement over and across the last described 60 feet, together with a quit claim deed for a permanent easement over and across Tract C, Registered Land Survey No. 1228, files of Registrar of Titles, Hennepin County, Minnesota Subject to an easement for storm sewer purposes. That part of the South half of the Southeast quarter of Section 30, Township 29 North, Range 24 West lying North of the center line of Cedar Lake Road and West of a line drawn Southerly from and perpendicular to the North line of said South half of the Southeast quarter from a point in said North line distant 664.00 feet East of the Northwest corner of said South half of the Southeast quarter, except the North 200.00 feet of the West 253.00 feet thereof. Subject to an easement for Roadway purposes over and across the Westerly 33.00 feet thereof. Subject to easements for sanitary sewer and storm sewer purposes. St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 18 of 26 RESOLUTION TO ESTABLISH INTERNAL LOAN FUND – to be inserted here St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 19 of 26 SUMMARY OF CONTRACT FOR PRIVATE DEVELOPMENT By and Between City of St. Louis Park and Cedar Trails Condominium Association October 28, 2002 1. The City’s Role and Obligations • Upon receipt of petitions from 25% of the owners of housing units in the Cedar Trails Condominium Association, the City gave proper notice by mail and publication, held a public hearing, established by ordinance the Cedar Trails Housing Improvement Area, and imposed by resolution a Housing Improvement Fee to fund needed Housing Improvements. • The City agreed to finance the Housing Improvements through an Internal Loan, the proceeds of which would be disbursed to the Association upon expenditure and proper notice to the City. • The City will apply Housing Improvement Fee revenues to repay the Internal Loan obligation. • The City will furnish the Association with a certificate of completion of the Housing Improvements upon conclusive determination by the City Building Official of the Association’s satisfaction of the covenants of the Agreement. 2. The Association’s Role and Obligations • The Association will construct the improvements in accordance with the approved construction plans and all local, state, and federal laws and regulations, including both environmental and energy-conservation laws and regulations. • The Association will obtain all permits, licenses and approvals and meet all legal and regulatory requirements which must be obtained or met before the improvements may be constructed. • The Association shall maintain stipulated insurance coverage during construction and until the maturity date of the Internal Loan. • The Association shall complete construction by December 31, 2004, subject to Unavoidable Delays as defined. St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 20 of 26 3. Internal Loan • The City will make an internal loan of $1,365,742, with $1,326,833 for disbursement to the Association for construction of the Housing Improvements, $23,000 for administrative costs, legal fees, financial advisor, and inspecting architect’s fee, and $15,909 as a carrying fee to reflect the estimated cost to the City of loan interest through December, 2003, prior to receipt of the fee revenues. • The terms of the loan will be established by an Internal Loan Resolution that establishes a Project Fund, fixes the interest rate at 6.30%, with accrual beginning January 1, 2004, and provides for deposit of the principal on the effective date of the resolution. • In the event that Fee Revenues exceed the Internal Loan payments or remain after payment in full of the Internal Loan, the City may, in its sole discretion: prepay principal due on the Internal Loan; by resolution of the Council specify additional housing improvements and establish a Supplemental Project Fund for disbursements; by resolution of the Council disburse the funds to the Association for deposit into a Replacement Reserve Fund with a separate Excess Revenue Subaccount, to be expended only for housing improvements approved by the City; or any combination of these. • If net Fee Revenues available for debt service on the Internal Loan are less than the amount due, the Association will within ten days of notice pay the amount of such deficiency, and failure to do so shall entitle the City to exercise its remedies in Events of Default. • Disbursements to the Association shall require written certification that items proposed for payment are necessary and not paid for already, that remaining funds are sufficient to complete the Housing Improvements, and that the current balance in the Association’s Replacement Reserve Fund is at least $375,000. 4. Miscellaneous • The City makes no warranty regarding the Housing Improvements. • The Association indemnifies and defends the City for claims related to the project. St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 21 of 26 • The Association will provide a Financial Plan prepared by a Management consultant every year until maturity of the Internal Loan, and a report by an Independent engineer describing the physical conditions of the property and Housing Improvements in 2005, 2007, 2009, and 2011. • The Association shall keep stipulated records and make these available to the City for inspection, keep the property and Housing Improvements in good repair, and at all times prior to maturity of the Internal Loan keep $375,000 in the Replacement Reserve Fund. • The Association provides its assets, in the form of dues, fees, and assessments, and covenants, as security to the City. • The Association agrees to maintain its existence and not to assign its rights, interests, or obligations during the life of the Internal Loan. • The Association agrees to use its best efforts to provide notice of the Housing Improvement Fee to prospective buyers or transferees of the housing units. • The property manager shall be Park Midwest Property Management Company. St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 22 of 26 Contract for Private Development – to be inserted St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 23 of 26 6a. Public Hearing on Cedar Trails Condominium Association Housing Improvement Area The Cedar Trails Condominium Association has petitioned the City Council to hold a public hearing to consider an ordinance to establish the Cedar Trails Housing Improvement Area and a resolution approving a housing improvement fee for the Cedar Trials Housing Improvement Area. Recommended Action: Mayor to close Public Hearing. Motion to adopt first reading of an ordinance to establish the Cedar Trails Housing Improvement Area and to set Second Reading for November 4, 2002. Background: The housing goals of Vision St. Louis Park, the Economic Strategic Development Plan, and the City’s Comprehensive Plan include providing a balanced and sustainable housing stock and ensuring that all housing is safe and well maintained. The City is implementing a comprehensive strategy to preserve and enhance the single family detached homes, multifamily buildings (Louisiana Court) and neighborhoods. This strategy has yet to address the aging owner-occupied townhouse and condominium housing stock. Construction and conversion of townhouses and condominiums, which comprise 12% of the City’s housing stock, began in the 1970’s. The City’s Comprehensive Plan notes that “there is a concern that maintenance may be underfunded for some townhouse associations and maintenance issues may arise in the future.” As most of the buildings are going on 30 years, this is becoming a concern. Use of the Housing Improvement Area (HIA) finance tool would provide an additional method to assist in meeting the City’s housing goals. State Statute authorizes cities to establish HIAs as a finance tool for private housing improvements. An HIA is a defined area within a city where housing improvements are made and the cost of the improvements are paid in whole or in part from fees imposed on the properties within the area. This tool is similar to the commercial special service district. At the June 25, 2001, Study Session, Council discussed the use of the HIA relating to the Cedar Trails Condominium Association and adopted a Housing Improvement Area policy on July 16, 2001. At the April 22, 2002 Study Session, the Council favorably reviewed a preliminary application from the Cedar Trails Condominium Association. On September 13, 2002, the Cedar Trails Condominium Association submitted 212 signed petitions requesting the City Council to conduct a Public Hearing for the purpose of establishing an HIA and imposing fees. State Statute requires that petitions be received from at least 25% of the owners. The City’s policy requires that a majority of owners sign petitions. The 212 signed petitions represent 57% of the 372 total number of owners. • Cedar Trails Condominium Association Background St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 24 of 26 The Cedar Trails Condominium complex has 280 units in 35 buildings and was originally built in 1971 as rental property. The 35 buildings were converted to condos in 1979. The 2002 assessed values of the units range from $69,000 - $115,000, with a 2002 average assessed value of $92,000. Approximately 75% of the 280 units are owner occupied. Nearly two years ago the Cedar Trails Condominium Association hired a professional property management company, Park Midwest Commercial Property Management Co., to manage the facility. The Board and Management Company have been addressing fiscal and physical issues. They contracted to have a Reserve Study conducted detailing the current condition of the property and to provide a 20-year plan of projected capital expenditures. The association’s fiscal status was also reviewed and a plan was established to ensure adequate reserves to fund future improvements. The Board increased fees in July and October of 2001 to address operating and reserve fund needs. The current average monthly fee is $300. This fee includes heat and water, since the buildings were built as apartment buildings and units have common boilers. • Proposed Improvements and Costs. The reserve study indicated that the association’s current reserve levels are inadequate to fund approximately $1,300,000 in needed improvements. Over the past year the Board has been discussing the need for improvements and methods of financing them at the monthly membership meetings. The table below outlines the scope of work and corresponding costs as well as other project costs. The improvements do meet HIA criteria, in that they are common area improvements or integral to building systems operations. Table 1: Cedar Trails Condominium Association Housing Improvement Area Project Costs Parking Lot Overlay $120,250 Concrete work; curb, gutter, patios, sidewalk $137,679 Retaining Walls $22,920 Garage Fixtures, Roofs, Siding $218,882 Building Roofs $68,870 Common Area ceiling tile, light fixtures, tile replacement $59,762 Common Area Washer/dryers $28,362 Pool Building Renovations $65,804 Boilers, and related work $141,696 Piping, water softeners & heaters $74,413 Windows (590 wdws) $236,963 Patio Doors (18 units) $21,698 Construction Contingency $119,730 Permit Costs $9,805 Project Costs $1,326,833 Capitalized Interest $15,909 Soft Costs $23,000 Total Loan Amount $1,365,742 • HIA Goals. St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 25 of 26 The City HIA policy defines eligible uses and goals for HIA financing. The Cedar Trails proposal meets the established goals. • It promotes neighborhood stabilization and revitalization by upgrading existing housing stock in a neighborhood. • It will increase or prevent the loss of tax base of the City to ensure the long-term ability of the City to provide adequate services for its residents. • The improvements are primarily common area exterior improvements and improvements integral to the operation of the project. The improvements are of a permanent nature. • Statute and City Policy Criteria. The Cedar Trails proposal meets the following critical statutory and City Policy requirements. • The project is in accordance with the Comprehensive Plan and Zoning Ordinances. • A majority of owners, 212 of 372, signed petitions requesting a public hearing. This number reflects owners of 163 of the units. • The association hired a third party to conduct a capital improvement study. Reserve Studies Inc. conducted the facility needs assessment to determine and prioritize the scope of improvements. • The average market value of units meets policy criteria in that is does not exceed the maximum home purchase price of existing homes under the State's first time homebuyer program. In 2002, the metro amount is $175,591. The 2002 average assessed value of units is $92,000. • The basis for imposition of fees is consistent with dues structures as prescribed in the Association By-Laws. • The Association has demonstrated that without the HIA, improvements could not be made. The Association has provided documentation from Associated Bank and Citizens Bank that financing improvements without adequate collateral requires conditions of high interest rates and balloon payments, which in turn would result in onerous assessments to residents. Additionally, the Association By-Laws restrict multi-year assessments. • The Public Hearing requirements are being met. • A written objection process allows individual owners to file an objection of inclusion in the area and subjection of fees. • A veto period follows the adoption of the ordinance, where 35% of the owners, or 35% of tax capacity, may file written objections. When this occurs the statute requires that the HIA not be granted. • Financing The loan to the association would be an internal loan, using City/EDA Development Funds, rather than issuing bonds. The use of the Development Fund for the internal loan meets the Fund’s policy criteria. An internal loan resolution will be drafted to formalize the arrangement. The City’s Finance Director and City Assessor have been involved in structuring the loan and ensuring assessment procedures are followed. The Development Agreement will ensure that the loan is secured by Association Assets, defined as dues, fees, St. Louis Park City Council Agenda Item: 110402 - 7c - Cedar Trails Housing Improvement Area Page 26 of 26 assessments and other income owing to the Association from unit owners. The table below outlines the loan terms. Owners will have the option to prepay prior to the fees being assessed and avoid interest costs. Fees will be payable with property taxes beginning in 2004. Table 2. Loan Terms Term (years) 10 Interest Rate 6.30% Average Annual Debt Service $188,207 Required Coverage (105%) $197,617 Total Units 280 Cost/Unit – Annual (Average) $705.78 Cost/Unit – Monthly (Average) $58.81 Average Fee – Per/Unit (Principal only) $4,877.65 Representatives from the Cedar Trails Condominium Association Board and Property Management Company will be in attendance along with staff from Kennedy & Graven and Ehlers and Associates. Next Steps Staff will continue to work with Kennedy & Graven, Ehlers & Associates and the Association Board to finalize a Development Agreement and Internal Loan Fund Resolution. The Second Reading of the ordinance will be scheduled on November 4, 2002, at which time the Council would: adopt a Fee Resolution, approve the ordinance to establish the HIA, approve an Internal Loan Fund Resolution, and approve the Development Agreement. Attachments: Sample Petition Public Hearing Notice Ordinance Establishing the Cedar Trails Housing Improvement Area Resolution Approving a Housing Improvement Fee for the Cedar Trails Housing Improvement Area. Prepared by: Tom Harmening, Community Development Director, Michele Schnitker, Housing Supervisor Kathy Larsen, Housing Programs Coordinator Approved by: Clint Pires, Deputy City Manager St. Louis Park City Council Agenda Item: 110402 - 7d - Pawn Ordinance Page 1 of 17 7d. First reading of Ordinance amending Chapter 8, Article II, Subdivision XII, of the St. Louis Park Municipal Code concerning pawnbrokers and providing a penalty for violation. This ordinance authorizes the City of St. Louis Park to become part of the Automated Pawn System. Recommended Action: Motion to approve first reading of ordinance and set second reading for November 18, 2002. Background: Over the past year, the Police Department and the City Attorney’s Office have worked together to draft an ordinance that will authorize St. Louis Park to become part of the Automated Pawn System. The APS program is an integrated combination of technology, laws and regulations that enables jurisdictions to: • Automate the daily collection of pawn transaction data from shops in numerous communities; • Disseminate the data regionally with every participating police agency; • Share “public” portions of the data with citizens and private industry; • Increase the identification of stolen property and the individuals involved; and • Recover their full cost of regulating pawnshops. The APS system is used in many metropolitan areas in the upper Midwest. An overview of the system has been provided by the Minneapolis Police Department and is attached. If adopted by the city, participation in the system is mandatory for all pawnshops. Currently, there are three licenses for businesses to operate as pawnshops. They are held by the following: • Excel Pawn 7003 West Lake Street St. Louis Park, MN. 55426 • Twin Cities Gold and Silver 4813 Excelsior Blvd. St. Louis Park, MN. 55416 (two licenses are held at this same address.) Regulation of Transactions: The police department currently monitors activities and transactions at the pawnshops. An officer is assigned as a liaison between the police department and the pawnshops. Each week this officer goes to the pawnshops and retrieves a list of transactions that took place the past week. The officer spends approximately three hours per pawnshop reviewing the list and checking on possible case leads or suspicious activity. A dispatcher is assigned to run serial numbers through the National Crime Information Center (NCIC) to see if there is a “hit” on it as stolen property. The time involved for the dispatcher is approximately two hours per week. The current system allows only limited access to information that can be vital in conducting investigations. Use of the APS system will enable our department to evaluate transaction data from all users of the system in a variety of ways. For example, a person who has a high level of St. Louis Park City Council Agenda Item: 110402 - 7d - Pawn Ordinance Page 2 of 17 pawn activity can be targeted for increased surveillance, which can eventually lead to arrest. The system shows how often an individual pawns property, and where they have pawned it. Often, those who are involved in criminal activity will pawn several items at several pawnshops in different cities, in a single day. Another advantage lies in the data input technology used by the system. Pawn operators are required to provide complete information for each record, or item, entered into the system. If required information is incomplete (serial #, name of owner, etc.) the system will reject the entry. That incomplete entry is flagged by the APS system for review by the police department. Proposed Ordinance: The proposed ordinance is newly created and if adopted, will be added to the licensing section of the Municipal Code. Significant changes in adopting the APS provisions include: • Addition of a non-refundable Investigation Fee • Addition of Billable Transaction Fees • Participation in Automated Pawn System required by pawnshops • Provisions regarding transactions and receipts are expanded • A thirty day Holding Period on merchandise prior to resale required • Police Order to hold and confiscation provisions are added A draft copy of the proposed ordinance is attached. Highlighted sections are contained in the existing ordinance. All other provisions are new. This ordinance is formatted and numbered for inclusion in the 2003 Municipal Code. Number of Licenses to be Issued The city’s existing pawnbroker licensing ordinance states that no more than 3 licenses will be issued in any calendar year. This restriction is due to the fact that pawn operations require a great deal of surveillance and monitoring by our Police Department. Most cities restrict the number of pawnbrokers. Minneapolis allows 4 to operate in their city of approximately 350,000, most other cities in the metro area allow only one or two operations. There were three licenses issued for calendar year 2002 to the following businesses: Excel Pawn 7003 West Lake St Twin Cities Gold and Silver 4813 Excelsior Blvd; and Boulevard Jewelry and Loan, 4813 Excelsior Blvd Both TC Gold and Silver and Blvd Jewelry and Loan operate at the same location, and from the same counter. Though TC Gold and Silver currently holds a license, the licensee has stated that the license is inactive and no pawn transactions have occurred during this year. It is the recommendation of the Police Department that the number of licenses in SLP be reduced from three to two and our City Attorney has assisted in drafting ordinance provisions to accomplish that goal. St. Louis Park City Council Agenda Item: 110402 - 7d - Pawn Ordinance Page 3 of 17 St. Louis Park City Council Agenda Item: 110402 - 7d - Pawn Ordinance Page 4 of 17 Impact on the City: Administration – If adopted, the police department will handle responsibilities associated with the APS. An officer will be responsible for the random auditing of the system, and work as a liaison between the pawnshops and the police department. The police department will also be responsible for the enforcement of the ordinance. Budget – To become part of the APS, a one-time fee of $1050.00 will be charged to the City. This fee includes training every Agent and Officer assigned to Support Services on how to use the APS. Additional training is provided two times a month (1st and 3rd Tuesdays) APS is available for officers twenty-four hours a day, seven days a week. The police department will not need to purchase any new equipment to accommodate the APS. Impact on the Pawn Shops: Participation – The ordinance will mandate that pawnshops report transactions on APS specific software. This upgrade will bring them into compliance with current state law. A color photograph, or color video recording is required for each customer involved in a billable transaction, and every item sold or pawned not having a unique serial number or identification number permanently engraved or affixed. Some pawnshops may need to upgrade computer equipment, and training will be necessary to familiarize the pawnshop employees with APS software and procedures. Because this system is in place in many parts of the state, pawnshop owners have come to expect that they will be using the APS system. Existing St. Louis Park licensees have been contacted regarding the program and have stated that they expected St. Louis Park to begin utilizing APS. One pawn manager felt the program would eventually become a statewide program and believed the program was very successful in solving crimes. This particular pawnshop handles approximately 6,000 transactions a year. Fees – The intent of the fees is to recover the cost of regulating pawnshops by setting an appropriate transaction fee for each item pawned. Staff recommends that pawnshops dealers be charged $1.50 per transaction. (See attached report showing how this figure was decided.) The average cost through out the metro area is $1.50. The numbers of transactions that take place in St. Louis Park were compared to costs associated with administering the program. Application for a license under this ordinance will include a nonrefundable investigative fee at a rate set by the City Council to cover the costs associated in verifying the license application and of any investigation required to assure ongoing compliance with the ordinance. Staff recommends an application fee of $1,000.00. The annual license renewal fee recommended by staff is $2,000.00. All fees will be credited to a fund dedicated to administration and enforcement of the pawn ordinance. Staff is anticipating that all fee resolutions will be presented to the Council at second reading of the ordinance. City pawnshop license holders use pawn software and enter data into it for each of their transactions. Excel Pawn uses the “Pawn Master” software program, and Twin Cities Gold and St. Louis Park City Council Agenda Item: 110402 - 7d - Pawn Ordinance Page 5 of 17 Silver Exchange uses the “Pawn Power” software program. Currently all City pawnshops are in violation of Minnesota State Statute 325J.05 which mandates a specific electronic file format. Software and possibly hardware upgrades will be required to bring them into compliance. Secondhand Store Operators: Currently, state law does not require secondhand stores to comply with any reporting, or using a specific electronic file format. At this time staff does not recommend ordinance changes to include secondhand stores in the APS. The following Minnesota cities currently regulate the activities of secondhand businesses. 1. Crystal 2. Shakopee 3. Minneapolis 4. Coon Rapids 5. Richfield 6. St. Paul (passed on October 9th 2002) Of the fifty-one cities that participate with the APS, sixteen of them are considered “contributing agencies.” Those agencies upload daily transaction information to the APS central repository. Of the sixteen cities, the above listed six regulate secondhand store transactions. Staff contacted all sixteen cities to learn which had second hand ordinances and which did not. There was discussion with each city representative at length regarding why they either did, or did not move forward with a second hand ordinance. The most common answers are listed below: Why they did move forward with a second hand ordinance: 1. They were concerned that not having a second hand ordinance would create a loophole allowing criminal activity to continue. Why they did not move forward with a second hand ordinance: 1. Difficult to identify items w/o serial numbers. 2. Councils did not want to give the impression that they were “business unfriendly.” 3. No secondhand stores in the city. 4. Difficult to decide which items should be included and which shouldn’t. Difficult to decide which stores should be regulated and which ones should not be regulated. During research conducted by staff, many communities found it difficult to decide which businesses should be regulated. Also the decisions of which items would be considered reportable were problematic. Staff contacted many City businesses that would be considered secondhand stores. Many of them were jewelry stores. When staff asked the owners of the St. Louis Park City Council Agenda Item: 110402 - 7d - Pawn Ordinance Page 6 of 17 jewelry stores how often they bought items from the public, many of them said that they did not. The others said that they did buy items from the public, however it was fewer than fifteen times per calendar year. A majority of business for pawnshops is buying and selling jewelry, so it make sense to regulate the pawnshops which do a significant amount of this activity. If at some point in the future it is determined that there is a “loop-hole” in the ordinance which allows criminal activity, the police department will re-visit the idea of regulating the secondhand stores. Staff will monitor the situation in an attempt to determine if there is a shift of criminal activity from pawnshops to secondhand stores in an attempt to circumvent the proposed ordinance. Experience in other jurisdictions: The APS system is used throughout the metro area. Many of our neighboring cities, including Minneapolis, Edina, Richfield, Minnetonka, Golden Valley and Hopkins participate in the program. A complete list of APS participants is attached. Other jurisdictions using APS report no concerns and speak very highly of the program. It is viewed as a useful tool for tracking pawn operations with a high level of activity and ensuring that the regulated businesses operate legitimately. The St. Louis Park Police Department is committed to the Community Policing Model and views APS as a tool to partner with pawnshops and other cities to prevent crime, protect victims and prosecute criminals. Recommendation: Staff recommends approval of the proposed ordinance. Attachments: Pawn Ordinance (supplement) List of APS contributing and query only agencies (supplement) Worksheet for $1.50 transaction fee (supplement) Minneapolis APS overview (supplement) Prepared By: John D. Luse, Chief of Police Approved By: Charles W. Meyer, City Manager St. Louis Park City Council Agenda Item: 110402 - 7d - Pawn Ordinance Page 7 of 17 ORDINANCE NO. 02-_______ AN ORDINANCE AMENDING CHAPTER 8, ARTICLE II, SUBDIVISION XII, OF THE ST. LOUIS PARK MUNICIPAL CODE CONCERNING PAWNBROKERS AND PROVIDING A PENALTY FOR VIOLATION THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK ORDAINS: Section 1. Repealer. Chapter 8, Sections 8-421 through 8-425 of the St. Louis Park Municipal Code are hereby repealed in their entirety. Section 2. Chapter 8 of the St. Louis Park Municipal Code is hereby amended to add new sections 8-421 through 8-437 which read as follows: Subdivision XII. Pawnbroker 8-421 Purpose. (a) The City Council finds that the use of services provided by pawnbrokers potentially provides an opportunity for the commission of crimes and their concealment because such businesses have the ability to receive and transfer stolen property easily and quickly. The City Council also finds that consumer protection regulation is warranted in transactions involving pawnbrokers. The purpose of this Section is to prevent pawn businesses from being used as facilities for the commission of crimes and to assure that such businesses comply with basic consumer protection standards, thereby protecting the public health, safety, and general welfare of the citizens of the City. (b) To help the Police Department better regulate current and future pawn businesses, decrease and stabilize costs associated with the regulation of the pawn industry, and increase identification of criminal activities in the pawn industry through the timely collection and sharing of pawn transaction information, this Section also implements and establishes the required use of the Automated Pawn System (APS). 8-422. Regulations Adopted. The regulations pertaining to pawnbrokers set forth in Minn. Stat. Ch. 325J, as amended, are hereby adopted herein by reference as if fully stated herein. 8-423. General Provisions Apply. All provisions of Chapter 8, Article II: General Provisions, apply to this section unless stated otherwise in the individual provisions of this Section. 8-424. License Required. No person shall engage in the business of pawnbroker in the City without first obtaining a license from the City. 8-425 Application. St. Louis Park City Council Agenda Item: 110402 - 7d - Pawn Ordinance Page 8 of 17 (a) Form of Application. In addition to any information that may be required by the County pursuant to Minn. Stat. § 471.924, every application for a license under this Section shall be made according to provisions contained in sections 8-36 of this Chapter (b) Application Verification. All applications for pawnbroker licenses shall be referred to the Police Department for verification and investigation of the facts set forth in the application. The Police Department shall make a written report and recommendation to the City Clerk as to issuance or non-issuance of the license. The City Clerk may order and conduct such additional investigation as deemed necessary. 8-426. Licensee Eligibility. (a) To be eligible for or to maintain a pawnbroker license, a person must operate lawfully and fairly within the purposes of Minn. Stat. Ch. 325J and this Section and: (1) may not be a minor at the time that the application for a pawnbroker's license is filed; (2) may not have been convicted of any crime directly related to the occupation licensed as prescribed by Minn. Stat. Section 364.03, subdivision 2, unless the person has shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a licensee under this Chapter as prescribed by Section 364.03, subdivision 3; and (3) must be of good moral character or repute. (4) must not hold an intoxicating liquor license within the City. 8-427. License Restrictions. (a) Number of Licenses Issued. On the effective date of this Subdivision XII, the maximum allowable number of pawnbroker licenses shall be two. Pawnbroker licensees existing on the effective date of this Subdivision XII are eligible to apply for renewal at the existing licensed premises, and if renewed, may continue until the license for that licensed premises is revoked or is not renewed. (b) License Transfer Not Allowed. Each license under this Section shall be issued to the applicant only and shall not be transferable to any other person. No licensee shall loan, sell, give, or assign a license to another person. (c) Inactive License. The City Council may revoke the pawn license of any business that shows no pawn activity for a period of six months. A hearing shall be held to determine the status of the pawn operation and if satisfactory intent to do business under the license is not demonstrated, the City Council may revoke the license. (d) Premises. A license under this division shall be issued only for the exact rooms and square footage of the premises described in the application. (e) Zoning requirements met. No license shall be granted until all applicable zoning requirements are met or until all conditions for approval of the use have been satisfied. 8-428. Fees. St. Louis Park City Council Agenda Item: 110402 - 7d - Pawn Ordinance Page 9 of 17 (a) Investigation Fee. An applicant for any license under this Chapter shall, at the time an original application is submitted, pay the City a nonrefundable investigation fee as set from time to time by the city council and listed in appendix A to this Code, to cover the costs involved in verifying the license application and to cover the expense of any investigation needed to assure compliance with this Section. (b) License Fee. The licensee shall pay an annual license fee as set from time to time by the city council and listed in appendix A to this Code. (c) Billable Transaction Fees. Licensees shall pay a monthly transaction fee on all billable transactions as defined in section 8-429 (b). Such fee shall be as set from time to time by the city council and listed in appendix A to this Code. Billable transaction fees are payable within thirty (30) days. Failure to timely pay the billable transaction fee shall constitute a violation of this Section. 8-429. Transactions. (a) Reportable Transactions. Every transaction conducted by a pawnbroker in which merchandise is received through a pawn, purchase, consignment or trade, or in which a pawn is renewed, extended, redeemed or voided, is a reportable transaction except: (1) The bulk purchase or consignment of new or used merchandise from a merchant, manufacturer, or wholesaler having an established permanent place of business, and the retail sale of said merchandise, provided the pawnbroker must maintain a record of such purchase or consignment which describes each item, and must mark each item in a manner which relates it to that transaction record. (2) Retail and wholesale sales of merchandise originally received by pawn or purchase, and for which all applicable hold and/or redemption periods have expired. (b) Billable Transactions. Billable transactions are defined as every reportable transaction conducted by a pawnbroker, except renewals, redemptions, or extensions of existing pawns on items previously reported and continuously in the licensee’s possession. 8-430. General Operating Requirements. (a) Records Required. At the time of any reportable transaction other than renewals, extensions or redemptions, every licensee must immediately record in English the following information by using ink or other indelible medium on forms or in a computerized record approved by the police department: (1) A complete and accurate description of each item including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item. (2) The purchase price, amount of money loaned upon, or pledged therefor. (3) The maturity date of the transaction and the amount due, including monthly and annual interest rates and all pawn fees and charges. (4) Date, time and place the item of property was received by the licensee, and the unique alpha and/or numeric transaction identifier that distinguishes it from all other transactions in the licensee's records. Transaction identifiers must be consecutively numbered. St. Louis Park City Council Agenda Item: 110402 - 7d - Pawn Ordinance Page 10 of 17 (5) Full name, current residence address, current residence telephone number, date of birth and accurate description of the person from whom the item of the property was received, including: sex, height, weight, race, color of eyes and color of hair. (6) The state of issue and identification number from a current valid photo driver’s license or a current valid state photo identification card from any state or from any province of Canada. (7) The signature of the person identified in the transaction. (b) Photographs Required. The licensee must also take a color photograph or color video recording of: (1) Each customer involved in a billable transaction. (2) Every item pawned or sold that does not have a unique serial or identification number permanently engraved or affixed. (3) Photographs must be at least two (2) inches in length by two (2) inches in width and must be maintained in such a manner that the photograph can be readily matched and correlated with all other records of the transaction to which they relate. Such photographs must be available to the chief of police, or the chief's designee, upon request. The major portion of the photograph must include an identifiable front facial close-up of the person who pawned or sold the item. Items photographed must be accurately depicted. The licensee must inform the person that he or she is being photographed by displaying a sign of sufficient size in a conspicuous place in the premises. If a video photograph is taken, the video camera must zoom in on the person pawning or selling the item so as to include an identifiable close-up of that person's face. Items photographed by video must be accurately depicted. Video photographs must be electronically referenced by time and date so they can be readily matched and correlated with all other records of the transaction to which they relate. The licensee must inform the person that he or she is being videotaped orally and by displaying a sign of sufficient size in a conspicuous place on the premises. The licensee must keep the exposed videotape for three (3) months, and furnish it to the police department upon request. (c) Digitized Photographs. Licensees may fulfill the color photograph requirements in Subsection 8-430 (b) by submitting them as digital images, in a format specified by the issuing authority, electronically cross- referenced to the reportable transaction they are associated with. Notwithstanding the digital images may be captured from required video recordings, this provision does not altar or amend the requirements in Subsection 8-430(b). (d) Renewals, Extensions and Redemptions. For renewals, extensions and redemptions, the licensee shall provide the original transaction identifier, the date of the current transaction, and the type of transaction. (e) Disposition of Articles. (1) When an article of pawned or pledged property is redeemed from a licensee, the records shall contain an account of such redemption with the date, interest charges accrued, and the total amount for which the article was redeemed. St. Louis Park City Council Agenda Item: 110402 - 7d - Pawn Ordinance Page 11 of 17 (2) When an article of purchased or forfeited property is sold or disposed of by a licensee and the licensee receives One Hundred Dollars ($100.00) or more in the payment thereof, the records shall contain an account of such sale with the date, the amount for which the article was sold, and the full name, current address, and telephone number of the person to whom sold. (f) Inspection of Records. The records must at all reasonable times be open to inspection by the police department or department of licenses and consumer services. Data entries shall be retained for at least three (3) years from the date of transaction. Entries of required digital images shall be retained a minimum of ninety (90) days. (g) Daily Reports to Police. Licensees must submit every reportable transaction to the police department daily in the following manner: (1) Licensees must provide to the police department all information required in Section 8-430 (a) through (f) and other required information, by transferring it from their computer to the Automated Pawn System via modem. All required records must be transmitted completely and accurately after the close of business each day in accordance with standards and procedures established by the issuing authority using procedures that address security concerns of the licensees and the issuing authority. The licensee must display a sign of sufficient size, in a conspicuous place in the premises, which informs all patrons that all transactions are reported to the police department daily. (2) Billable Transaction Fees. Licensees will be charged for each billable transaction reported to the police department. (3) If a licensee is unable to successfully transfer the required reports by modem, the licensee must provide the police department printed copies of all reportable transactions along with the video tape(s) for that date, by 12: 00 the next business day; (4) If the problem is determined to be in the licensee's system and is not corrected by the close of the first business day following the failure, the licensee must provide the required reports as detailed in Section 8-430 (g) (3), and must be charged a fifty dollar ($50.00) reporting failure penalty, daily, until the error is corrected; or (5) If the problem is determined to be outside the licensee's system, the licensee must provide the required reports in Section 8-430 (g) (3), and resubmit all such transaction via modem when the error is corrected. (6) If a licensee is unable to capture, digitize or transmit the photographs required in Section 8-430 (c), the licensee must immediately take all required photographs with a still camera, cross-reference the photographs to the correct transaction, and make the pictures available to the Police Department upon request. (7) Regardless of the cause or origin of the technical problems that prevented the licensee from uploading their reportable transactions, upon correction of the problem, the licensee shall upload every reportable transaction from every business day the problem had existed. (8) The Police Department may, upon presentation of extenuating circumstances, delay the implementation of the daily reporting penalty. St. Louis Park City Council Agenda Item: 110402 - 7d - Pawn Ordinance Page 12 of 17 (h) Receipt Required. Every licensee must provide a receipt to the party identified in every reportable transaction and must maintain a duplicate of that receipt for three (3) years. The receipt must include at least the following information: (1) The name, address and telephone number of the licensed business. (2) The date and time the item was received by the licensee. (3) Whether the item was pawned or sold, or the nature of the transaction. (4) An accurate description of each item received including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item. (5) The signature or unique identifier of the licensee or employee that conducted the transaction. (6) The amount advanced or paid. (7) The monthly and annual interest rates, including all pawn fees and charges. (8) The last regular day of business by which the item must be redeemed by the pledger without risk that the item will be sold, and the amount necessary to redeem the pawned item on that date. (9) The full name, current residence address, current residence telephone number, and date of birth of the pledger or seller. (10) The state of issue and identification number from a current valid photo driver’s license or a current valid state photo identification card from any state or from any province of Canada. (11) Description of the pledger or seller including approximate sex, height, weight, race, color of eyes and color of hair. (12) The signature of the pledger or seller. (13) All printed statements as required by Minnesota Statute 325J.04, subdivision 2, or any other applicable statutes. (i) Redemption Period. Any person pledging, pawning or depositing an item for security must have a minimum of ninety (90) days from the date of that transaction to redeem the item before it may be forfeited and sold. During the ninety (90) day holding period, items may not be removed from the licensed location except as provided in Section 8-430 (s). Licensees are prohibited from redeeming any item to anyone other than the person to whom the receipt was issued or, to any person identified in a written and notarized authorization to redeem the property identified in the receipt, or to a person identified in writing by the pledger at the time of the initial transaction and signed by the pledger, or with approval of the police license inspector. Written authorization for release of property to persons other than original pledger must be maintained along with original transaction record in accordance with Section 8-430 (h). (j) Holding Period. Any item purchased or accepted in trade by a licensee must not be sold or otherwise transferred for thirty (30) days from the date of the transaction. An individual may redeem an item seventy-two (72) hours after the item was received on deposit, excluding Sundays and legal holidays. (k) Police Order to Hold Property. (1) Investigative Hold. Whenever a law enforcement official from any agency notifies a licensee not to sell an item, the item must not be sold or removed from the premises. The investigative hold shall be confirmed in writing by the St. Louis Park City Council Agenda Item: 110402 - 7d - Pawn Ordinance Page 13 of 17 originating agency within seventy-two (72) hours and will remain in effect for fifteen (15) days from the date of initial notification, or until the investigative order is canceled, or until an order to hold/confiscate is issued, pursuant to Section 8-430 (k) (2), whichever comes first. (2) Order to Hold. Whenever the chief of police, or the chief's designee, notifies a licensee not to sell an item, the item must not be sold or removed from the licensed premises until authorized to be released by the chief or the chief's designee. The order to hold shall expire ninety (90) days from the date it is placed unless the chief of police or the chief's designee determines the hold is still necessary and notifies the licensee in writing. (l) Order to Confiscate. If an item is identified as stolen or evidence in a criminal case, the police chief or chief's designee may: (1) Physically confiscate and remove it from the shop, pursuant to a written order from the police chief or the chief's designee, or (2) Place the item on hold or extend the hold as provided in Section 8-430 (k) (2), and leave it in the shop. (3) When an item is confiscated, the person doing so shall provide identification upon request of the licensee, and shall provide the licensee the name and phone number of the confiscating agency and investigator, and the case number related to the confiscation. (4) When an order to hold/confiscate is no longer necessary, the chief of police, or chief's designee shall so notify the licensee. (m) Inspection of Items. At all times during the terms of the license, the licensee must allow law enforcement officials to enter the premises where the licensed business is located, including all off-site storage facilities as authorized in Section 8-430 (s), during normal business hours, except in an emergency, for the purpose of inspecting such premises and inspecting the items, ware and merchandise and records therein to verify compliance with this chapter or other applicable laws. (n) Label Required. Licensees must attach a label to every item at the time it is pawned, purchased or received in inventory from any reportable transaction. Permanently recorded on this label must be the number or name that identifies the transaction in the shop's records, the transaction date, the name of the item and the description or the model and serial number of the item as reported to the police department, whichever is applicable, and the date the item is out of pawn or can be sold, if applicable. Labels shall not be re-used. (o) License Display. A license issued under this Section must be posted in a conspicuous place in the premises for which it is used. The license issued is only effective for the compact and contiguous space specified in the approved license application. (p) Responsibility of Licensee. A licensee under this Section shall be responsible for the conduct of the business being operated and shall maintain conditions of order. The conduct of agents or employees of a licensee, engaged in performance of duties for the licensee, shall be deemed the conduct of the licensee. (q) Gambling. No licensee under this Section may keep, possess, or operate, or permit the keeping, possession, or operation on the licensed premises of dice, slot machines, roulette wheels, punchboards, blackjack tables, or pinball machines which return coins or slugs, chips, or tokens of any kind, which are redeemable in merchandise or cash. No gambling equipment authorized under St. Louis Park City Council Agenda Item: 110402 - 7d - Pawn Ordinance Page 14 of 17 Minn. Stat. Chapter 349, may be kept or operated and no raffles may be conducted on the licensed premises and/or adjoining rooms. The purchase of lottery tickets may take place on the licensed premises as authorized by the director of the lottery pursuant to Minn. Stat. Chapter 349A. (r) Penalty for Property Owner. It is unlawful for any person who owns or controls real property to knowingly permit it to be used for pawn brokering without a license. (s) Property to be Kept on Premises. All property deposited, left, pledged, pawned, or held for sale must be stored in an enclosed facility and may not be stored outside of the premises. The City may, however, permit the licensee to designate one (1) off premises locked and secured facility in which the licensee may store only cars, boats, and other motorized vehicles. The licensee shall permit immediate inspection of the facility at any time during business hours by the City. All provisions in this section regarding record keeping and reporting shall apply to oversized items. All property shall be stored in compliance with zoning and/or fire regulations and in an orderly manner subject to inspection by the Fire Department. The premises shall also be equipped with an operational security alarm. 8-431. Restricted Transactions (a) Hours of Operation. No pawnbroker shall keep the pawnbroker business open for the transaction of business on any day of the week before 7:00 a.m. or after 10:00 p.m. (b) Minors. The pawnbroker shall not purchase or receive personal property of any nature on deposit or pledge from any minor. (c) Prohibited Goods. No licensee under this Section shall accept any item of property which contains an altered or obliterated serial number or "Operation Identification" number or any item of property whose serial number has been removed. (d) Security Interest. No licensee nor any agent or employee of a licensee shall purchase, accept, or receive any article of property knowing, or having reason to know, that the article of property is encumbered by a security interest. For the purpose of this section, “security interest” means an interest in property which secures payment or other performance of an obligation. (e) True Owner. No licensee nor any agent or employee of a licensee shall purchase, accept, or receive any article of property, from any person, knowing, or having reason to know, that said person is not the true and correct owner of the property. (f) Proper Identification. No licensee nor any agent or employee of a licensee shall purchase, accept, or receive any article of property, from any person, without first having examined a current valid photo driver’s license or a current valid state photo identification card from any state or from any province of Canada. (g) Payment by Check. Payment of more than Two Hundred Fifty Dollars ($250.00) by a licensee for any article deposited, left, purchased, pledged or pawned shall be made only by a check, draft, or other negotiable or non-negotiable instrument which is drawn against funds held by a financial institution. This policy must be posted in a conspicuous place in the premises. (h) Restrictions on Sale. A pawnbroker shall suspend for one (1) year, any business transaction with any person who has sold and/or forfeited on six (6) previous occasions articles for which the person received $25.00 or more per transaction within a single six (6) month period. 8-432. Inspections by Police or Claimed Owner. St. Louis Park City Council Agenda Item: 110402 - 7d - Pawn Ordinance Page 15 of 17 (a) Premises. Any licensee shall, at all times during the term of the license, allow the police department to enter the premises, where the licensee is carrying on business, including all off-site storage facilities as authorized in Section 8-430 (s), during normal business hours, except in an emergency, for the purpose of inspecting such premises and inspecting the articles and records therein to locate goods suspected or alleged to have been stolen and to verify compliance with this Section or other applicable laws. No licensee shall conceal any article in his possession from the police department. (b) Property. All articles of property coming into the possession of any licensee shall be open to inspection and right of examination of any police officer or any person claiming to have been the owner thereof or claiming to have had an interest therein when such person is accompanied by a police officer. 8-433. Conduct of Persons on Licensed Premises. (a) Property of Another. No person may pawn, pledge, sell, leave, or deposit any article of property not their own; nor shall any person pawn, pledge, sell, leave, or deposit the property of another, whether with permission or without; nor shall any person pawn, pledge, sell, leave, or deposit any article of property in which another has a security interest; with any licensee. (b) Minors. No minor may pawn, pledge, sell, leave, or deposit any article of property with any licensee. (c) Proper Identification. No person may pawn, pledge, sell, leave or deposit any article of property with any licensee without first having presented a current valid photo driver’s license or a current valid state photo identification card from any state or from any province of Canada. (e) False Identification. No person seeking to pawn, pledge, sell, leave, or deposit any article of property with any licensee shall give a false or fictitious name; nor give a false date of birth; nor give a false or out of date address of residence or telephone number; nor present a false driver’s license or identification card; to any licensee. 8-434 Required Signage. (a) All licensees shall by adequate signage and separate written notice inform persons seeking to pawn, pledge, sell, leave, or deposit articles of property with the licensee of the foregoing requirements. (1) For the purpose of this Subsection, “adequate signage” shall be deemed to mean at least one sign of not less than four (4) square feet in surface area, comprised of lettering of not less than three-quarters (3/4) of an inch in height, posted in a conspicuous place on the licensed premises and stating substantially the following: TO PAWN OR SELL PROPERTY: YOU MUST BE AT LEAST 18 YEARS OF AGE. YOU MUST BE THE TRUE OWNER OF THE PROPERTY. THE PROPERTY MUST BE FREE OF ALL CLAIMS AND LIENS. YOU MUST PRESENT VALID PHOTO IDENFICATION. VIOLATION OF ANY OF THESE REQUIREMENTS IS A CRIME. St. Louis Park City Council Agenda Item: 110402 - 7d - Pawn Ordinance Page 16 of 17 (2) For the purpose of this Subsection, “separate written notice” shall be deemed to mean either the receipt, as required in Section 13-1320. 12. (E), or a printed form, incorporating a statement to the effect that the person pawning, pledging, selling, leaving, or depositing the article is at least eighteen (18) years of age; is the true owner of the article; and that the article is free of all claims and liens; which is acknowledged by way of signature of the person pawning, pledging, selling, leaving, or depositing the article. 8-435 General Restrictions. (a) No pawnbroker licensed under this Section shall: (1) Lend money on a pledge at a rate of interest above that allowed by law; (2) Knowingly possess stolen goods; (3) Sell pledged goods before the time to redeem has expired; (4) Refuse to disclose to the City, after having sold pledged goods, the name of the purchaser or the price for which the item sold; or (5) Make a loan on a pledge to a minor. 8-436 Suspension or Revocation of License. (a) The City Council may suspend or revoke a license issued under this Section upon a finding of a violation of: (1) any of the provisions of this Section; (2) any state statute regulating pawnbrokers; or (3) any state or local law relating to moral character and repute. (b) A revocation or suspension by the City Council shall be preceded by written notice to the licensee and a public hearing. The written notice shall give at least ten (10) days' notice of the time and place of the hearing and shall state the nature of the charges against the pawnbroker. The notice may be served upon the pawnbroker personally or by United States mail addressed to the most recent address of the business in the license application. 8-437. Penalty. Violation of any provision of this Section shall be a misdemeanor. Section 3. Effective Date. This ordinance shall be effective fifteen days after passage and publication. Reviewed for Administration: Adopted by the City Council ____________ City Manager Mayor St. Louis Park City Council Agenda Item: 110402 - 7d - Pawn Ordinance Page 17 of 17 Attest: Approved as to form and execution: City Clerk City Attorney St. Louis Park City Council Agenda Item: 110402 - 7e - 2nd Reading Detached Garage & AccessoryStructures Page 1 of 16 7e. Second Reading of zoning ordinance text amendments regarding detached garages and other accessory structures/uses. Case No. 02-24-ZA Recommended Action: Motion to approve second reading of the zoning ordinance text amendments regarding detached garages and other accessory structures/uses, approve the summary ordinance and authorize publication. The City Council discussed the draft ordinance at the September 23, 2002 study session and directed staff to make the following revisions: 1. Revise the accessory building overhang setback to allow more flexibility. The revision changes the setback for roof overhangs from two feet to 16 inches (the minimum allowed by Building Code). This allows flexibility to re-build garages at the existing 16 inch roof overhang setback. 2. Require a conditional use permit (CUP) for cumulative ground floor areas of detached structures in excess of 800 square feet for single-family lots in the R-1, R-2 and R-3 and over 1,200 square feet for two-family lots in the R-3 and R-4 districts. This would allow Council to consider larger garages on large lots. The home would still have to be larger than the garage. 3. Require a CUP for windows, doors, skylights and other similar opening in the second floor of any accessory building. This would limit the usability and impact of accessory buildings with second stories. Note that such two-story accessory buildings would still have to meet the principal building setback (i.e., 25 feet rear yard setback) except on an alley. 4. Limit second floor space in detached accessory buildings to storage use, unless another use is specifically approved as part of a CUP. Note that such two-story accessory buildings would still have to meet principal building setbacks, except on alleys. 5. Staff is further recommending that the CUP could be used to consider a roof pitch less than 3/12. The proposed ordinance requires a 3/12 pitch or greater for the following reasons: a) to eliminate a potential second story at the lesser setback; b) to encourage accessory buildings to emulate the principal building, which generally have pitched roofs; and c) to reduce impacts from potential second story decks and storage on flat roofs. The CUP option would provide some flexibility in instances where the home may have a flat pitch or there are other unusual circumstances. The revisions are designed to control the potential nuisance aspects of larger two-story detached garages and allow more flexibility in certain situations. The revision also contains the following conditions for review of residential detached accessory building conditional use permits: a. The area, bulk, height, design or use shall have minimal impact on the use, enjoyment or property value of adjoining property. b. The detached garage is compatible with the scale and character of the neighborhood. c. The detached garage space is not used for dwelling purposes (i.e., bedroom, bathroom, kitchen or other similar uses). Note: the proposed ordinance prohibits plumbing for kitchens or bathrooms. d. Garage space is not used for business or commercial purposes. e. The cumulative ground floor area of the detached garage and any other accessory buildings does not exceed 25% of the back yard. In reviewing the Zoning Code to ensure consistency, staff further noticed that the existing definition of ground floor area references the old height threshold of 12 feet (to the midpoint), whereas we are currently proposing 15 feet to the peak. Therefore, staff is recommending amending the definition of ground floor area to reference the new threshold height for smaller accessory buildings. The City Attorney reviewed the revisions and advised that they could go back to Second Reading provided they are within the general scope of the public hearing notice. Staff reviewed the public hearing notice and found that changes were anticipated to all of the pertinent Code sections. The proposed revisions are therefore within the scope of the notice and do not need to go back to Planning Commission or First Reading. Background: Staff has been working with Greg Ingraham of Ingraham and Associates in analyzing potential changes to the ordinance regulating detached garages and other accessory structures in residential districts. Over the course of several study sessions, the City Council discussed issues pertaining to the size, placement and use of detached garages. The review was initiated by the Council in response to issues raised by residents about construction of some detached garages permitted under the existing code standards. The Council directed staff to continue working out the details and to prepare ordinance revisions for a public hearing and Planning Commission recommendation. The intent of the proposed ordinance revisions is to revise the height and setback requirements for larger garages to minimize the impact, while balancing the need to allow storage space for move-up housing needs. In reviewing accessory structure ordinances, staff also found some inconsistencies in the Code and sections needing clarification to ensure uniform enforcement. Therefore, staff and the Planning Commission are also proposing some changes to the yard encroachments and accessory uses sections of the Code. On June 5, 2002 the Planning Commission held a public hearing and discussed the proposed ordinance amendments. The Planning Commission continued the public hearing until June 19th and asked staff to consider some minor changes/clarifications. On June 19, 2002, the Planning Commission reopened the public hearing and discussed the changes proposed by staff (see Analysis section of report). The Planning Commission recommended approval of the proposed ordinance amendments on a vote of 4-1-0. On July 1, 2002 the City Council considered First Reading of the proposed ordinance and additional citizen testimony. The Council discussed whether the 800 square feet restriction on accessory building footprints was adequate or whether total square footage should be limited in cases where principal structure setbacks can be met and a second story may be feasible. The Council approved First Reading on a vote of 5-0 and set Second Reading for July 15, 2002. The Council asked staff to provide further analysis regarding the accessory building area restrictions for consideration at Second Reading. This was included at the end of the analysis section of the July 15th report During the July 15th Council meeting, the Council asked staff to discuss the ordinance at a future Study Session for potential tweaking of certain aspects. The changes discussed at the September 23, 2002 Study Session are explained above and highlighted in the revised, attached ordinance. A complete analysis of other aspects of the ordinance can be found in the July 15th Council report. Attachments: Ø Proposed Ordinance with changes highlighted from the July 15th Second Reading Ø Proposed Summary Ordinance Prepared By: Greg Ingraham, Planning Consultant Janet Jeremiah, Planning & Zoning Supervisor Approved: Charles W. Meyer, City Manager Revisions as per City Council 9-23-02 Other revision for Code consistency ORDINANCE NO.______ AN ORDINANCE AMENDING THE ST. LOUIS PARK ORDINANCE CODE RELATING TO ZONING BY AMENDING SECTIONS 36-4, 36-73, 36-162, 36-163, 36-164, 36-165, 36-166, AND 36-167 DETACHED GARAGES AND OTHER ACCESSORY STRUCTURES AND USES THE CITY OF ST. LOUIS PARK DOES ORDAIN: Findings Sec. 1. The City Council has considered the advice and recommendation of the Planning Commission (Case No. 02-24-ZA). Sec. 2. The St. Louis Park Ordinance Code, Sections 36-4, 36-73, 36-162, 36-163, 36-164, 36-165, 36-166, and 36-167 is hereby amended by deleting stricken language and adding underscored language. Section breaks are represented by ***. Sec. 36-4 Definitions. *** Ground floor area means the lot area covered by a building measured from the exterior faces of exterior walls but excluding decks and terraces and detached garages which do not exceed 12 15 feet in height. *** Building Height – Principal Building. A distance to be measured from the mean curb level along the front lot line or from the finished grade level for all that portion of the structure having frontage on a public right-of-way whichever is higher to the top of the parapet or rooftop equipment, whichever is higher, of a flat roof; to the deck line of a mansard roof; to a point on the roof directly above the highest wall of a shed roof; to the upper most point on a round or other arch type roof; or to the mean distance of the highest gable on a pitched or hip roof. INSERT SKETCH EXAMPLES – See Attachment Height – Accessory Building. A distance to be measured from the first story elevation, as defined by Building Code, to the highest point of the structure. Height – Accessory Structure. A distance to be measured from the lowest exterior grade at the base of the structure to the highest point of the structure. INSERT SKETCH EXAMPLES – See Attachment *** Sec. 36-73. Yard encroachments. (a) The following shall not be encroachments on yard requirements provided no permanent structure is placed in an easement without first obtaining approval of an encroachment agreement: *** (7) driveways, parking areas, and pedestrian sidewalks subject to the requirements of Sec. 36-162 and Sec. 36-361. (8) fences and retaining walls subject to the requirements of Sec 36-74 and provided the retaining walls are necessary to correct grade differences and height is minimized via terracing where feasible. Where a fence is attached to a retaining wall structure, the retaining wall shall be included in the fence height measurement. (b) The following shall not be encroachments on yard requirements for principal buildings provided no permanent structure is placed in an easement without first obtaining approval of an encroachment agreement: (1) Bays and window wells not exceeding a depth of two three feet or containing an area of more than 20 square feet. *** (4) Uncovered porches, stoops, patios or decks which do not extend above the height of the ground floor level of the principal building and are a minimum of two feet from any interior side or rear lot line and 15 feet from any front lot line and do not encroach on any side yard abutting a street. *** (c) The following shall not be encroachments on rear and side yard requirements for accessory buildings: cornices, eaves and gutters; provided they do not extend more than eight inches into a required yard; and provided such encroachment is no closer than 16 inches from all lot lines. Building overhangs shall also comply with the state building code. (d) The following shall not be encroachments on side and rear yard requirements provided no permanent structure is placed in an easement without first obtaining approval of an encroachment agreement: *** (e) The following shall not be encroachments on rear yard requirements provided no permanent structure is placed in an easement without first obtaining approval of an encroachment agreement: (1) balconies, detached outdoor picnic shelters, and recreational equipment. (2) swimming pools, whirlpools, saunas and tennis courts provided they are a minimum of 5 feet from the rear lot line, are enclosed by a privacy fence that screens the view from neighboring properties, and any associated accessory structures such as the required fence, decks, patios, and heating equipment meet all Code requirements including subsections (a), (b), and (d) of this section, Sec. 36-74, and Sec.36-162. *** 36-162 RESTRICTIONS AND PERFORMANCE STANDARDS *** (b) Definitions. For the purpose of subsections (c)7, c(8, (c)9 and (c)10 of this section, the listed terms are defined as follows: *** (c) General Provisions *** (7) Accessory structures shall comply with the following regulations: a. No accessory building shall be erected or located within a yard other than the rear yard, except that a detached accessory building, designed and used as a garage, may be located within a side yard unless it abuts a street. No accessory building shall be located between the front building wall and the front lot line. b. No accessory building erected in the rear yard of a comer lot shall be located within 15 feet of any property line abutting a street except that in an R-2 or R-3 district an accessory building may be located within nine feet of a property line abutting a street on a lot of record which is at least 40 feet wide but less than 60 feet wide. c. All detached garages and other accessory structures shall be compatible in design and materials to the principal structure on the parcel.A detached garage located 60 feet or more from the front lot line shall meet the following locational provisions: 1. Garages where the building dimensions do not exceed 12 feet in height and/or 26 feet in width shall be located a minimum of two feet from any lot lines. 2. Garages where the building dimensions exceed 12 feet in height and/or 26 feet in width shall be located a minimum of two feet from a lot line abutting an alley and five feet from any other lot lines. e. The total ground floor area of all accessory buildings shall not exceed 25 percent of the area between the principal structure and rear lot line and in the R-1, R-2 or R-3 districts and it shall not exceed 800 square feet. Except in the R-3 district, the total ground floor area of all accessory buildings shall not exceed either 1,200 square feet or 25 percent of the area between the principal structure and rear lot line for a two-family dwelling unit. No single accessory building may exceed 800 square feet. f. The height of an accessory building measured from the lowest level on the ground within five feet of the foundation, in accordance with section 36-4, shall not exceed 15 feet, except parking ramps whose height is regulated by sections 36-166 and 36-167. g. No accessory building other than a garage shall be located within three feet of any lot line abutting lots in an R district. h. Accessory buildings located less than six feet from a principal building on the same lot shall be considered part of the principal building for the purpose of applying provisions of this chapter. j. An accessory structure 120 square feet or less in area shall obtain a zoning permit prior to its installation and must be anchored in a manner approved by the city. k. All detached garages and other accessory buildings shall have a minimum 3/12 roof pitch or greater. a. Location - 1. Accessory buildings shall be erected or located within the back yard as defined in subsection (b) above, except that a detached accessory building, designed and used as a garage and meeting the provisions of subsections 2 and 3 below, may be located within a side yard unless it abuts a street. No accessory building shall be located in the front yard as defined in subsection (b) above. 2. A detached garage located 60 feet or more from the front lot line shall meet the following locational provisions: i. Garages where the building dimensions do not exceed 15 feet in height and/or 26 feet in length or width shall be located a minimum of two feet from any lot lines. No eaves, overhangs or other portion of the structure are allowed in the two feet setback area. ii. Garages where the building dimensions exceed 15 feet in height and/or 26 feet in length or width shall be located the following minimum distances from any lot lines: District Min. Interior Side Yard Min. Rear Yard Min. to Alley R-1 9 feet 25 feet 2 feet R-2 7 feet 25 feet 2 feet R-3 9 feet 25 feet 2 feet iii. Garages on alleys shall be located and designed to maintain adequate visibility and vehicle turning movements. iv. Eaves, overhangs, gutters or other extensions from the roof of the structure shall be located a minimum of 16 inches from any property line. 3. No accessory building, including a detached garage, shall be located within a side or rear yard abutting a street. 4. No accessory building other than a detached garage meeting the requirements of subsection 2 above shall be located within three feet of any lot line. 5. All accessory buildings and structures shall be located to comply with the principal building yard requirements unless exempt by this section or Sec. 36-73. 6 No accessory building or permanent structure shall be located in a drainage or utility easement without first obtaining approval of an encroachment agreement. b. Size – 1. Accessory buildings on single-family lots in the R-1, R-2 and R-3 Districts and on non-conforming two-family lots: i. The total cumulative ground floor area of all accessory buildings (detached garages, storage sheds and other accessory buildings) shall not exceed 25 percent of the area between the principal structure and rear lot line. ii. the total cumulative ground floor area of all accessory buildings shall not exceed 800 square feet, unless approved as a conditional use. 2. Accessory buildings on conforming two-family lots in the R-3 or R-4 District: i. The total cumulative ground floor area of all accessory buildings shall not exceed either 1200 square feet or 25 percent of the area between the principal structure and rear lot line. ii. No single accessory building may exceed 800 square feet in total area and the cumulative area of all accessory buildings shall not exceed 1,200 square feet unless approved as a conditional use.. 3. The total cumulative ground floor area of all accessory buildings shall be smaller than the ground floor area of the principal building on the lot. c. Height – 1. Detached garages – Shall not exceed 15 feet or 22 feet in height as measured in accordance with section 36-4 depending upon the location as specified in Sec.36- 162(c)7a above. 2. Parking ramps – Height is regulated by sections 36-166 and 36-167. 3. Other accessory buildings and structures hall not exceed 15 feet in height as measured in accordance with Sec. 36-4 unless exempt by Sec. 36-78. 4. The height of all accessory buildings and structures shall be lower than the highest point of the principal building unless exempt by Sec. 36-78. d. Design - 1. All detached garages and other accessory buildings shall be compatible in design and materials to the principal building on the parcel. 2. All detached garages and other accessory buildings shall have a minimum 3/12 pitch on any roof section, unless approved as a conditional use. 3. No plumbing for kitchen or bathroom facilities (including but not limited to toilets and showers) is allowed in any detached garage or other accessory building. Hose bibs and utility sinks are allowed. 4. Floor drains in garages and other accessory buildings must be connected to sanitary sewer as approved by the City. 5. No part of any window, door, skylight or similar openings shall be located in the second story of a detached garage unless approved as a conditional use. 6. Second stories of detached garages may only be used for storage, unless another use is approved as a conditional use. e. Accessory buildings as part of the principal buildings - Accessory buildings located less than six feet from a principal building on the same lot shall be considered part of the principal building for the purpose of applying provisions of this chapter. f. Garages below grade level - Where the natural grade of a lot at the building line of a house is eight feet or more above the established curb level, a private garage may be erected within any yard provided one-half or more of its height is below grade level and it is located a minimum of ten feet from any street line and five feet from any side lot line. g. Permit required – All accessory buildings (including storage buildings 120 square feet or less in area) shall obtain a zoning or building permit prior to installation and must be anchored in a manner approved by the city. *** 36-163 R-1 SINGLE FAMILY RESIDENCE DISTRICT *** (d.) Uses permitted with a conditional use permit. *** (5) Detached garages The following detached garage uses and features may be allowed as a conditional use. a. Floor areas in excess of the square footage limitations of Section 36-162 (7), b, 1, ii, b. Second stories used for other than storage purposes. c. Window, door, skylight or similar openings located in the second story. d. Roof pitch less than 3/12 slope. The conditions are as follows: i. The area, bulk height, design or use shall have minimal impact on the use, enjoyment or property value of adjoining property. ii. The detached garage is compatible with the scale and character of the neighborhood. iii. Detached garage space is not be used for dwelling purposes (i.e. bedroom, bathroom, kitchen or other similar uses). iv. Garage space is not used for business or commercial purposes. iv. The cumulative ground floor area of the detached garage and any other accessory buildings does not exceed 25% of the back yard. (e) Accessory uses. The following uses shall be permitted accessory uses in an R-1 district: (1) Garages and other accessory buildings in conformance with Sec. 36-162. Private garages no to exceed 800 square feet or 25 percent of the rear lot area, which ever is less. (2) Off-street parking areas in conformance with Sec 36-162 and 36-361. (3) Private swimming pool and tennis court in conformance with Sec 36-73. *** (6) Keeping of not more than two boarders or roomers by a resident family provided the living area for the boarders/roomers is within the principal building and does not constitute a separate dwelling unit. (7) Living quarters of persons employed for domestic or medical purposes on the premises provided the living area for the domestic/medical household staff is within the principal building and does not constitute a separate dwelling unit. *** 36-164 R-2 SINGLE FAMILY RESIDENCE DISTRICT *** (d.) Uses permitted with a conditional use permit. *** (3) Detached garages The following detached garage uses and features may be allowed as a conditional use. a. Floor areas in excess of the square footage limitations of Section 36-162 (7), b, 1, ii, b. Second stories used for other than storage purposes. c. Window, door, skylight or similar openings located in the second story. d. Roof pitch less than 3/12 slope. The conditions are as follows: j. The area, bulk height, design or use shall have minimal impact on the use, enjoyment or property value of adjoining property. ii. The detached garage is compatible with the scale and character of the neighborhood. v. Detached garage space is not be used for dwelling purposes (i.e. bedroom, bathroom, kitchen or other similar uses). iv. Garage space is not used for business or commercial purposes. vi. The ground floor area of the garage and accessory building area does not exceed 25% of the rear yard area (e) Accessory uses. The following uses shall be permitted accessory uses in an R-2 district: (1) Garages and other accessory buildings in conformance with section 36-162. Private garages no to exceed 800 square feet or 25 percent of the rear lot area, which ever is less. (2) Off-street parking areas in conformance with Sec 36-162 and 36-361. (3) Private swimming pool and tennis court in conformance with Sec 36-73. *** (6) Keeping of not more than two boarders or roomers by a resident family provided the living area for the boarders/roomers is within the principal building and does not constitute a separate dwelling unit. (7) Living quarters of persons employed for domestic or medical purposes on the premises provided the living area for the domestic/medical household staff is within the principal building and does not constitute a separate dwelling unit. *** 36-165 R-3 TWO-FAMILY RESIDENCE DISTRICT *** (d.) Uses permitted with a conditional use permit. *** (4) Detached garages The following detached garage uses and features may be allowed as a conditional use. a. Floor areas in excess of the square footage limitations of Section 36-162 (7), b, 2, ii, b. Second stories used for other than storage purposes. c. Window, door, skylight or similar openings located in the second story. d. Roof pitch less than 3/12 slope. The conditions are as follows: k. The area, bulk height, design or use shall have minimal impact on the use, enjoyment or property value of adjoining property. ii. The detached garage is compatible with the scale and character of the neighborhood. vii. Detached garage space is not be used for dwelling purposes (i.e. bedroom, bathroom, kitchen or other similar uses). iv. Garage space is not used for business or commercial purposes. viii. The ground floor area of the garage and accessory building area does not exceed 25% of the rear yard area (e) Accessory uses. The following uses shall be permitted accessory uses in an R-3 district: (1) Garages and other accessory buildings in conformance with section 36-162. Private garages no to exceed 800 square feet or 25 percent of the rear lot area, which ever is less. (2) Off-street parking areas in conformance with Sec 36-162 and 36-361. (3) Private swimming pool and tennis court in conformance with Sec 36-73. *** (6) Keeping of not more than two boarders or roomers by a resident family provided the living area for the boarders/roomers is within the principal building and does not constitute a separate dwelling unit. (7) Living quarters of persons employed for domestic or medical purposes on the premises provided the living area for the domestic/medical household staff is within the principal building and does not constitute a separate dwelling unit. *** 36-166 R-4 MULTIPLE FAMILY RESIDENCE DISTRICT *** (e) Accessory uses. The following uses shall be permitted accessory uses in an R-4 district: (1) Private garages and parking spaces, provided they meet the requirements of Sec. 36- 361 and 36-366. (2) Tennis court in conformance with Sec. 36-73. (3) Private swimming pool in conformance with Sec. 36-73. *** (8) Keeping of not more than two boarders or roomers by a resident family provided the living area for the boarders/roomers is within the principal building and does not constitute a separate dwelling unit. (9) Living quarters of persons employed for domestic or medical purposes on the premises provided the living area for the domestic/medical household staff is within the principal building and does not constitute a separate dwelling unit. *** 36-167 RC, HIGH DENSITY MULTIPLE FAMILY RESIDENCE DISTRICT (f) Accessory uses. The following uses shall be permitted accessory uses in an R-C district: (1) Private garage and parking space, provided they meet the requirements of section 36- 361 and 36-366. (2) Tennis court in conformance with Sec. 36-73. (3) Private swimming pool in conformance with Sec. 36-73. *** (7) Keeping of not more than two boarders or roomers by a resident family provided the living area for the boarders/roomers is within the principal building and does not constitute a separate dwelling unit. (8) Living quarters of persons employed for domestic or medical purposes on the premises provided the living area for the domestic/medical household staff is within the principal building and does not constitute a separate dwelling unit. *** Sec. 3. The contents of Planning Case File 02-24-ZA are hereby entered into and made part of the public hearing record and the record of decision for this case. Sec.4. This Ordinance shall take effect fifteen days after its publication. Adopted by the City Council November 4, 2002 Reviewed for Administration City Manager Mayor Attest: Approved as to Form and Execution: City Clerk City Attorney 02-24-ZA:N/ord-res SUMMARY ORDINANCE NO._____________ AN ORDINANCE AMENDING THE ST. LOUIS PARK ORDINANCE CODE RELATING TO ZONING BY AMENDING SECTIONS 36-4, 36-73, 36-162, 36-163, 36-164, 36-165, 36-166, AND 36-167 DETACHED GARAGES AND OTHER ACCESSORY STRUCTURES AND USES The amendments are relative to clarifying and amending definitions and performance standards for the height and placement of detached garages and other accessory uses and structures in the single-family, two-family and multiple family residential zoning districts. This ordinance shall take effect 15 days after publication. Adopted by the City Council November 4, 2002 Jeffrey W. Jacobs /s/ Mayor A copy of the full text of this ordinance is available for inspection with the City Clerk. Published in St. Louis Park Sailor: November 13, 2002 02-24-ZAsum:N/res-ord