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2014.09.02 Council Meeting Packet4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Te]: ('763) 53l -1000 • Fax: ('763) 53l -1188 • www.crystalmn.gov �� ►�i�� Posted: August 28, 2014 City Council Meeting Packet for Tuesday, September 2, 2014 MEETING SCI3EDULE }tttttt,tttt,ttt. t ,,,,,,,,, ,,,,, ,, ,,,,,,,,,,, t t t ,. �F,F,F,F,FFFF, F,F,FF, F F,F,F,F,F,F,F,F,FF l , ,,,, ,,,,,. t , t {t iU. } } . } . } } } . }i� . .. }i�� }i }i qU. , } }i }i� }i� } } } . }i� } . } } j j , J.;, .t t��t� .:k t t t.:,t� t�� t .t . t i . i�.��a. . i. i. i. i 1 i. il. i. i.t7s� �.�.� ,}�'.,s � � �.�.� � .S. ....£t. si..,,(. �U. . 4flSFq..y ..,)1t}. .}.}.}i. :.U...} }. .4.li.k k. I.re+.t, .t }. } } } } ..;. 4. }FS F4.44 FS FS F...� ��t1�.. . i., „ i> t:... {.F4.44. FS FS.F4.44 FS F .� } ... £ ..7... .s�( t £ } . i i f i i i i , J: c i. rt. rt. rt rt rt . a >. 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Council meeting �tireei Reconstruction Feasibility Study — Project No. 2014-14 Auxilia�y aids are available upon request to individuals with disabilities by calling the City Cle�k at (763) 531-1145 at least 96 hours in ac�vance. TTY users may call Minnesvta Relay at 711 or 1-800-627-3529. 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: ('763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov CRYSTA� CITY COUNCI� FIRST WORK SESSION AGENDA Tuesday, September 2, 2014 6:30 p.m. Conference Room A Posted: August 28, 2014 Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the first work session of the Crystal City Council was held at p.m. on Tuesday, September 2, 2014 in Conference Room A located at 4141 Douglas Drive, Crystal, Minnesota. I. Attendance Council members Staff Hoffmann Norris Libby Peak Selton Adams Therres Hansen Revering Gilchrist Budziszewski Serres Deshler I1. Aqenda The purpose of the work session is to discuss the following agenda items: • Extension of audit services • Closing the GO Improvement Bonds, Series 2004A Debt Service Fund I11. Adiournment The work session adjourned at p.m. Auxiliary aids are available upon request to individuals wifh disabilities by calling the City C/erk at (763) 531-1145 at leasf 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529. �,� 4� Memorandum `CRYSTAL DATE: August 27, 2014 TO FROM Mayor and Council Members Anne Norris, City Manager Charles Hansen, Finance Director SUBJECT: Discuss Extension of Audit Services with KDV Background According to the City of Crystal's Charter, the City is required to undergo an annual audit of its finances. The annual audit is a critical element in the City Council's control over the city and the City Council must make the final decision on the auditors. Discussion Kern, DeWenter, and Viere (KDV) has audited the city's financial statements for the years 2004 through 2013. Audit engagements normally last for several years so that the costs of setting up files in the first year can be spread over several additional audits. The current engagement letter ends with the 2013 audit. I recently contacted Matthew Mayer, Partner in KDV, to discuss extending the audit engagement. Mr. Mayer responded with the attached proposal that extends the engagement for another five years. Under this proposal, the fees will be as follows: Year ending December 31, 2014 Year ending December 31, 2015 Year ending December 31, 2016 Year ending December 31, 2017 Year ending December 31, 2018 $29,200 $29,550 $30,000 $30, 525 $31,100 This proposal represents increases in the audit fee of from 1.0% to 1.9% per year. Conclusion Of course we would not be considering an extension unless we felt that KDV had performed well in past audits. The City Council must be confident that the audit firm is meeting the City's needs. I recommend that the City Council consider extending the engagement for five years, through the audit of the year ending December 31, 2018. If the City Council is satisfied with extending the engagement with Kern, DeWenter, and Viere, then a resolution can be prepared for an upcoming City Council meeting. The resolution would appoint KDV for the audit of the year ended December 31, 2014 and approve the proposed extension for the years 2015 through 2018. The engagement for each audit must be approved as that year comes up and the relationship may be ended before 2018 if the City becomes dissatisfied with the audit. A copy of the proposal from KDV is attached. � July 10, 2014 Honorable Mayor and Members of the City Council Mr. Charles Hansen, Finance Director City of Crystal 4141 Douglas Drive N Crystal, MN 55422 i� Minnea�olis 3200American Blvd W. S��iie 1000 �Ainneapoli;, fvtf�l $Sq3� T (952) 563 GS00 F (95?j 563 r,gpl st. cio�� Honorable Mayor, Members of the City Council, and Mr. Hansen: sc. a��AMr.i sc3o� T (320) ?Sl 7U10 Thank you for the invitation to continue providing audit services to the City for the next five �"o� �s� naa years. The following quoies assume the City will continue drai�ing its own Comprehensive Annual Financial Report. With a five-year commitment we are able to keep inflationary increases between one and two percent. Year Ending December 31, 2014 Year Ending December 31, 2015 Year Ending December 31, 2016 Year Ending December 31, 2017 Year Ending December 31, 2018 $29,200 $29,550 $30,000 $30,525 $31,100 If during these years the City expends more than $500,000 in Federal monies, a Single Audit in accordance with the provisions of OMB Circular A133 would be required. We would negotiate a separate fee with the City for this compliance audit based on the amount of activity involved. Thank you again for the opportunity to continue to serve the City of Crystal. If this quote meets your needs please sign below and return this letter in the enclosed envelope. We will provide an engagement letter at the time of the audit. Sincerely, � Matthew L. Mayer, CPA The City of Crystal commits to the quotes above for audit service for the years ending December 31, 2014 through 2018 Signature Title WWNJ. S(tI�J.COiYI Memorandum � CtTY;oF�. CRYSTAL DATE: August 27, 2014 TO: Mayor and City Council Anne Norris, City Manager FROM: Charles Hansen, Finance Director SUBJECT: Discuss Closing the GO Improvement Bonds, Series 2004A Debt Service Fund. BACKGROUND: The City of Crystal sold the GO Improvement Bonds, Series 2004A to finance special assessments of the Phase 5 street reconstruction project. Debt service fund number 325 was set up to account for the payment of principal and interest on these bonds. DISCUSSION: The original amount of the bond was $2,045,000 with principal and interest payments running from 2005 through 2020. These bonds have a call feature that allowed the City to call the remaining bonds for early payment beginning on February 1, 2014. Remaining bonds were catled on August 1, 2014. The final paying agent fee and arbitrage calculation fee remain to be paid. I expect there will be about $40,000 of cash and $355,200 of special assessments receivable remaining in the fund after settling all obligations. The financing plan for the street reconstruction program has assumed that all of these assets will be transferred to the Street Reconstruction Fund as they become available. CONCLUSION: If the City Council is in agreement with the proposal to close the debt service fund and transfer the remaining assets to the Street Reconstruction Fund a resolution can be prepared for an upcoming City Council meeting to authorize those actions. AGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL • REGULAR MEETING • TUESDAY, SEPTEMBER 2, 2014 6:50 P.M. CRYSTAL CITY HALL COUNCIL CHAMBERS Call to order 2. Roll call 3. Consider approval of minutes from the August 19, 2014 special meeting * 4. Consider a resolution adopting a proposed HRA tax levy for 2015 * 5. Other business 6. Adjournment * Materials attached 08/27/14 G:\EDA�Agendas�2014\09.02.docx Minutes of the Crystal Economic Development Authority Special Meeting August 19, 2014 President Deshler called the special meeting of the Crystal Economic Development Authority to order at 6:45 p.m. Upon call of the roll, the following members were present: Jim Adams, John Budziszewski, Julie Deshler, Mark Hoffmann, Laura Libby, Casey Peak and Joe Selton. The following staff inembers were present: Anne Norris, Executive Director; John Sutter, City Planner/Assistant Community Development Director; and Mike Norton, City Attorney. Motion by Commissioner Hoffmann (Budziszewski) to approve the minutes from the July 15, 2014 special meeting. Motion carried. The EDA held a public hearing to consider a resolution authorizing the sale of a lot at 4349 Xenia Avenue North to MT Builders for construction of a new house. President Deshler opened the public hearing. No one appeared and the hearing was closed. Motion by Commissioner Selton (Libby) to adopt Resolution #2014-07 authorizing the sale of a lot at 4349 Xenia Avenue North to MT Builders for construction of a new house. Motion carried. The EDA held a public hearing to consider a resolution authorizing the sale of a lot at 4326 Zane Avenue North to MT Builders for construction of a new house. President Deshler opened the public hearing. No one appeared and the hearing was closed. Motion by Commissioner Selton (Budziszewski) to adopt Resolution #2014-08 authorizing the sale of a lot at 4326 Zane Avenue North to MT Builders for construction of a new house. Motion carried. Motion by Commissioner Budziszewski (Peak) to adjourn the special meeting. Motion carried. The meeting adjourned at 6:55 p.m. Julie Deshler, President ATTEST: Mark Hoffmann, Vice President EDA STAFF REPORT "'��f Annual Resolution — 2015 HRA Levy CRYSTAL FROM: Patrick A. Peters, Deputy Executive Director DATE: August 22, 2014 TO: Anne Norris, Executive Director (for September 2, 2014 EDA meeting) SUBJECT: Consider a resolution adopting a proposed HRA tax levy for 2015 As part of the annual budgeting process, the EDA formally requests a Housing and Redevelopment Authority tax levy which would comprise part of its funding for 2015 activities. The proposed levy of $239,000 is slightly below the maximum allowed by state law and is consistent with the amount discussed in the budget work sessions. EDA approval of the attached resolution is recommended. PAGE 1 OF 1 ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. RESOLUTION ADOPTING A PROPOSED 2015 BUDGET AND PROPERTY TAX LEVY AND REQUESTING THEIR APPROVAL BY THE CITY COUNCIL WHEREAS, the Economic Development Authority of the City of Crystal (the "EDA") undertakes redevelopment and housing activities in the City of Crystal, Minnesota (the "City"); and WHEREAS, pursuant to authority granted by Minnesota Statutes, Section 469.02 and the enabling resolution of the EDA, the EDA exercises all of the powers of a housing and redevelopment authority ("HRA") as described in Minnesota Statues, Section 469.001 to 469.047 (the "Act"); and WHEREAS, under Section 469.033 Subdivision 6 of the Act, an HRA is authorized to levy and collect special benefit taxes on all taxable property under the jurisdiction of the HRA, that is, property in the City; and WHEREAS, the permitted levy is 0.0185 percent of the estimated market value of the property in the City. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Crystal as follows: 1. The EDA hereby adopts a 2015 proposed budget for housing and redevelopment in the amount of $371,669. 2. The EDA hereby adopts a proposed property tax levy of $239,000 for the purpose of funding the adopted budget in conformance with Section 469.033, Subdivision 6 of Minnesota Statutes. 3. The Executive Director is authorized and directed to transmit a certified copy of this Resolution to the City Council of the City of Crystal for its consent and approval as provided by Section 469.033 of the Act and for certification to the Property Tax Manager of Hennepin County. Adopted this day of , 2014. Julie Deshler, President Anne Norris, Executive Director THE CITY MANAGER'S COMMENTS ARE BO�DED. City ��r�� M��t�� r i i r September 2, 2014 7:00 P.M. Council Chambers I. CALL TO ORDER ROLL CALL AND PLEDGE OF ALLEGIANCE II. COUNCIL MEETWG MINUTES The Council will consider the minutes from the following meetings in a single motion: a. The Special City Council Meeting from August 15, 2014; b. The Regular City Council Meeting from August 19, 2014; c. Two Council Work Sessions from August 19, 2014; d. The Council Budget Work Session from August 21, 2014; and e. The Council Budget Work Session from August 27, 2014. III. CONSENT AGENDA The Council will consider the following items, which are routine and non-controversial in nature, in a single motion: 1. Approval of the list of license applications submitted by the City Clerk to the City Council, a list that is on file in the office of the City Clerk; 2. Approval of disbursements over $25,000 submitted by the Finance Director to the City Council, a list that is on file in the office of the Finance Director; 3. Approval of a special permit to serve wine and beer at Bassett Creek Park for a bridal shower on Sunday, September 7, 2014, from 11:00 a.m. — 4:30 p.m., submitted by Katherine Paronto; and 4. Approval of a resolution related to financing Crystal's share of the emergency water supply. As discussed at multiple work sessions, this resolution approves the emergency water surcharge on utility bills needed for a portion of Crystal's share of the emergency water supply. . . �. • ■ _�� l _ 1. The Mayor will open a public hearing to receive comment and Council consideration of a new pawnbroker license located at 5508 West Broadway, submitted by Bravo Financial, LLC d.b.a PawnWorks. All the required information has been submitted and reviewed. Recommend approval of the pawnbroker license for 5508 West Broadway. Crystal City Council Meeting Agenda September 2, 2014 V. REGULAR AGENDA 1. The Council will consider a resolution adopting a proposed 2015 budget and proposed tax levies payable in 2015. The City Council has had multiple work sessions reviewing the 2015 budget. The 2015 proposed budget includes a 2% levy increase, based on direction from the City Council, and will generally maintain current service levels. This is the preliminary levy which may be reduced but not increased at the December approval of the budget and final levy. The Council will continue its discussion of the 2015 budget at future work sessions. Recommend approval of the resolution adopting the preliminary 2015 budget and levy. 2. The Council will consider setting the date for discussion, public input, and adoption of the final 2015 budget and tax levy. The City Council determined the hearing and discussion of the 2015 budget and tax levy should be at its first meeting in December, on December 2. Recommend approval of scheduling the hearing for December 2. 3. The Council will consider bids and a resolution awarding construction contract for Public Works Facility construction — Project No. 2014-10. Competitive bids were received for the proposed public works facility on August 19. Since then, staff and Kodet Architectural Group have reviewed the bids and recommend awarding the contract to the low bidder, Big-D Construction MN. Based on the Council's discussion at its August 27 work session, the Council should also consider approval of the following resolutions regarding financing the Public Works project: - Resolution of intent to use bond proceeds to pay for a portion of the project (this doesn't commit the Council but preserves the option of using bond proceeds); and - Resolution scheduling a public hearing to consider the Capital Improvement Plan (including the Public Works facility) and issuing bonds to pay for part of the Public Works Facility (this does not commit the Council to selling bonds). VI. OPEN FORUM (Open forum is a time for individuals in the audience to address the Council on subjects not on the regular Council agenda. lndividuals are asked to step up to the podium and speak clearly into the microphone. You are allowed 3 minutes to make your comments and no items may be addressed more than ten minutes. The Council will not take action on items discussed during open forum or discuss matters under pending or threatened litigation; however, the Council may add the item to a future meeting agenda and ask city staff for follow-up. Page 2 of 4 Crystal City Council Meeting Agenda September 2, 2014 No comments will be taken during tonight's Open Forum regarding the Ramirez matter. The Council is well aware of the issues and concerns of inembers of the community group, Communities United Against Police Brutality and Crystal residents. The group's members have attended many city council meetings and have been in contact by telephone, email and written letter. The city has responded many times to requests for information. The city will provide any public information available in the future. Citizens are invited to communicate with city staff or the Mayor and Council by email or letter about this or any other topic.) VI1. INFORMATION AND DISCUSSION a) The Council will meet for a work session on Thursday, September 11 at 7:00 p.m. in Conference Room A at City Hall. b) Citizen Input Time resumes at 6:00 p.m., Tuesday, September 16, in Conference Room A at City Hall. c) The next City Council Meeting will be at 7:00 p.m. on Tuesday, September 16 in the Council Chambers at City Hall. d) The Crystal Business Association will meet on Wednesday, September 17 at 8:30 a.m. at Narthwest Hennepin Human Services Council, 612Q Earle Brawn Drive, Suite 230 in Brooklyn Center. VIII. 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Have a great Labor Day weekend! City offices are closed on Monday, September 1, in observance of Labor Day. See you at Tuesday's meeting. Page 4 of 4 Crystal City Council Special Meeting minutes August 15, 2014 2764 CALL TO ORDER Pursuant to due call and notice thereof, the Special Meeting of the Crystal City Council was held on Friday, August 15, 2014 at 5:00 p.m. in Conference Room A at 4141 Douglas Drive in Crystal, Minnesota. Mayor Adams called the meeting to order. ATTENDANCE The city clerk recorded the attendance with the following members: COUNCIL: Adams, Hoffmann, Libby and Selton. ABSENT: Budziszewski, Deshler and Peak. STAFF: City Manager A. Norris and City Clerk C. Serres. II. REGU�AR AGENDA 1. The Council considered a resolution canvassing the election returns and declaring the results of the Primary Municipal Election for the offices of Section I1, Ward 1 and Ward 2. City Clerk C. Serres addressed the Council. Moved by Councilmember Hoffmann and seconded by Councilmember Libby to adopt the following resolution, the reading of which was dispensed with by unanimous consent: RESOLUTIQN NO.' 2014 — 59 RESOLUTION CANVASSING THE VOTE AND DECLARING THE RESULTS OF THE PRIMARY MUNICIPAL ELECTION Voting aye: Adams, Hoffmann, Libby and Selton. Absent, not voting: Budziszewski, D'eshler and Peak. III. ADJOU'RNMENT Moved by Councilr adiourn the meetin Motion carried, resolution declared adopted. Hoffmann and seconded by Councilmember Libby to Motion carried. The journed at 5:03 p.m. Jim Adams, Mayor ATTEST: Chrissy Serres, City Clerk Crystal City Council Work Session minutes August 19, 2014 2765 Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the work session of the Crystal City Council was held at 6:16 p.m. on Tuesday, August 19, 2014 in Conference Room A at City Hall located at 4141 Douglas Drive, Crystal, Minnesota. Mayor Adams called the meeting to order. ATTENDANCE The assistant city manager/human resources manager recorded the attendance with the following members: COUNCIL: Deshler, Hoffmann, Libby, Peak, Selton, Adams and STAFF: II. AGENDA City Manager A. Norris, Assistant City Manager/Human Reso K. Therres, Public Works Director T. Mathisen, City Planner/� Community Development Director J. Sutter, Police Chief S. R City Attorney M. Norton. The Council and staff discussed the following agenda items: • Preview of Public Works facility bids • Commission liaisons reports/updates III. ADJOURNMENT The work session adjourned at 6:38 p.m. Jim Adams, Mayor ATTEST: Kim Therres, Assistant C'ity Manager/ HR Manager er Crystal City Council Meeting Minutes August 19, 2014 2766 I. CALL TO ORDER ROLL CALL AND PLEDGE OF ALLEGIANCE Pursuant to due call and notice thereof, the Regular Meeting of the Crystal City Council was held on Tuesday, August 19, 2014 at 7:00 p.m. in the Council Chambers at 4141 Douglas Drive in Crystal, Minnesota. Mayor Adams called the meeting to order. :• �� Mayor Adams asked the assessing/customer service specialist to call the roll for elected officials. Upon roll call, the assessing/customer service specialist recorded the following attendance: COUNCIL Present: Deshler, Hoffmann, Libby, Peak, Selton, Adams, and Bu STAFF City Manager A. Norris, City Attorney M. Norton, Assistant City ManagerlHuman ` Resources Manager K. Therres, City Planner/Assistant Community tievelopment Director J. Sutter, Police Chief S. Revering, Fire Chief S. Larson and AssessingJCustomer Service Specialist G. Van Krevelen. PLEDGE OF AL�EGIANCE Mayor Adams led the Council and audience in the Pledge o� Allegiance. PRESENTATIONS 1. The Council received a presentation 2. Police Chief Revering presented Re; Years of Service plaque. 3. Police Chief Revering presented Cry Explorer National Competitian. n County Sheriff Rick Stanek. Michelle Brenna with a volunteer Explorers and their victory at the III. COUNCIL MEETING MINUTES The Council considered the minutes from the following meetings in a single motion: a. The Council Work Session from July 10, 2014; b. The Council W�rk Session from July 15, 2014; c. The Regular City Council Meeting from July 15, 2014; d. :The Council Budget Work Session from August 7, 2014; and e. 'The Council Budget Work Session from August 14, 2014. Moved by Councilmember Peak and seconded by Councilmember Hoffmann to approve the above minutes in a single motion: Motion carried. IV. CONSENT AGENDA The Council considered the following items, which are routine and non-controversial in nature, in a single motion: 1. Approval of the list of license applications submitted by the City Clerk to the City Council, a list that is on file in the office of the City Clerk; Crystal City Council Meeting Minutes August 19, 2014 2767 IV. CONSENT AGENDA CONTINUED 2. Approval of disbursements over $25,000 submitted by the Finance Director to the City Council, a list that is on file in the office of the Finance Director; 3. Approval of a resolution accepting the following donations: •$6,500 from VFW Post 494 for the Crystal Frolics ■$5,500 from West Metro Fire-Rescue District Relief Association for the Crystal Frolics ■$500 from VFW Post 494 for Beyond The Yellow Ribbon signs ■ 2-$250 donations from Walmart for the Crystal Police Reserves ■$201.25 from the canine donation bucket at Crystal Frolics; 4. Acceptance of Andrew Richter's resignation from the Planning Commission; 5. Acceptance of Luke ReisdorF's resignation from the Environmental Quality ` Commission; 6. Approval of a special permit to consume beer/wine at Becker Park on Saturday, August 9, 2014, from 11:00 — 4:00 p.m., for the Crystal Corn Feed, submitted by the Crystal Lions (This was pre-approved by City ManagerAnne Norris on 7/30/2014.); and 7. Approval of a resolution ordering the preparation af an assessment roll, declaring the amount to be assessed, and setting the dat� for a public hearing for year 2014 delinquent accounts. Moved by Councilmember Hoffmann �nd seconded by Councilmember Libby to approve the consent agenda. Moved by Councilmember Budziszewski and seconded by Councilmember Selton to amend the above motion and rernove item # 4 and vote on it as a separate item. Motion carried. Moved;by Councilmember Peak and seconded by Councilmember Selton to approve item # 4 of the cc�nsent agenda. By roll call and voting aye: Deshler, Hoffmann, �ibby, Peak, Selton, and Adams. Ak�staining: Budziszewski. Motion carried. 1. The Mayor announced the purpose of the Public Hearing: The consideration of a new off sale liquor license located at 3530 Douglas Drive North submitted by J& M Concessions, Inc. d/b/a A-1 �iquor. Assistant City Manager K. Therres addressed the Council. Applicant Mr. Stanley Jackson addressed the Council. Crystal City Council Meeting Minutes August 19, 2014 2768 V. PUBLIC HEARING CONTINUED The Mayor opened the public hearing for testimony. There being no one wishing to appear before the Council to give testimony, Mayor Adams declared the public hearing closed. Moved by Councilmember Peak and seconded by Councilmember Hoffmann to approve the application for a new off-sale liquor license at 3530 Douglas Drive North submitted by J& M Concessions, Inc. d/b/a A-1 Liquor. Voting aye: Deshler, Hoffmann, Libby, Peak, Selton, Adams, and Bu VI. REGULAR AGENDA 1. The Council considered appointing Ambreasha Frazier to the Human Rights Commission for an unexpired term to expire on December 31, 2016. Applicant Ambreasha Frazier addressed the Council. Moved by Councilmember Budziszewski and seconded by Councilmember Libby to approve the appointment of Ambreasha Frazier to the Human Rights Commission for an unexpired term to expire on December 31, 201 �. Voting aye: Deshler, Hoffmann, Libby, Peak, Selton, Adams, and Budziszewski. Motion carried. 2. The Council considered appninting Jill Cundy to the Employee Review Board for an unexpired term to expire c�n aecernber 31, 2015. Applicant Jill Cundy addressed the Council. Moved by Councilmember Selton and seconded by Councilmember Peak to approve the appointm�nt of Jill �undy to the Employee Review Board for an unexpired term to expire on Decernber 31, 2015. 'Uc�ting aye: Deshler, Hoffmann, Libby, Peak, Selton, Adams, and Budziszewski. Motion carried. 3. The Council considered a variance to reduce the sign setback from 10 feet to 1 foot from the front lot line at 5120 56t" Avenue North. City Planner J. Sutter addressed the Council and answered questions. Crystal City Council Meeting Minutes August 19, 2014 .• VI. REGULAR AGENDA CONTINUED Moved by Councilmember Deshler and seconded by Councilmember Peak to approve the variance to reduce the sign setback from 10 feet to 1 foot from the front lot line at 5120 56t" Avenue North as recommended by the Planning Commission at its meeting on August 11, 2014, based on findings of fact and conclusions outlined in the Staff Report. VII. VIII Voting aye: Deshler, Hoffmann, Libby, Peak, Selton, Adams, and Budziszewski. carried. 4. The Council considered a resolution commending Crystal Police Lieutenant Dave ` Oyaas. Police Lieutenant Dave Oyaas addressed the Council. Moved by Mayor Adams and seconded by Councilmember Haffmann to adopt the following resolution, the reading of which was dispensed with by,unanimous consent: RESOLUTION NO. 2014 — 62 RESOLUTION COMMENDING POLICE LIEUTENANT DAVE OYAAS Voting aye: Deshler, Hoffmann, Libby, Peak, Selton, Adams, and Budziszewski. �v�� OPEN FORUM No public comment was given during open forum. INFORMATION ANt� DISCUSSION The Cry: Chiropra b) The C in the owing announcements: n carried, resolution declared adopted. usiness Association meets on August 20 at 8:30 a.m. at Go Health �101 West Broadway, Robbinsdale. il will meet for a budget work session on Thursday, August 21 at 6:30 p.m. munity Room at City Hall. c) City offices are closed Monday, September 1 in observance of the Labor Day holiday. d) The next City Council Meeting will be at 7:00 p.m. on Tuesday, September 2 in the Council Chambers at City Hall. Crystal City Council Meeting Minutes August 19, 2014 2770 IX. ADJOURNMENT Moved by Councilmember Budziszewski and seconded by Councilmember Deshler to adjourn the meeting. Motion carried. The meeting adjourned at 7:54 p.m. Jim Adams, Mayor ATTEST: Gail Van Krevelen, Assessing/Customer Service Specialist Crystal City Council Work Session minutes August 19, 2014 2771 Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, at 8:02 PM, the Mayor convened the Council Work Session in an open session on Tuesday, August 19, 2014 in Conference Room A at City Hall located at 4141 Douglas Drive, Crystal, Minnesota. Upon the advice of the City Attorney, the Council moved to close the meeting pursuant to Minn. Stat. § 13D.05, subd. 3(b), to receive attorney-client protected information and advice concerning pending litigation brought against the City by Alan Watt. I. ATTENDANCE The city manager recorded the attendance with the following members: COUNCIL: Deshler, Hoffmann, Libby, Peak, Selton, Adams and STAFF: City Manager A. Norris, Assistant City Manager/Hurnan Resaur�es Manager K. Therres, Police Chief S. Revering, City Attorneys M. Norton and T. Gilchrist and League of Minnesota Attorney J. Sullivan. The Council adjourned the closed meeting upon receiuing the advice from its attorneys, and then adjourned the work session at 8:28 PM. ' Jim Adams, Mayor ATTEST: Anne Norris, City Manager Crystal City Council Budget Work Session minutes August 21, 2014 Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the budget work session of the Crystal City Council was held at 6:30 p.m. on Thursday, August 21, 2014 in the Community Room at City Hall located at 4141 Douglas Drive, Crystal, Minnesota. Mayor Adams called the meeting to order. I. ATTENDANCE The city manager recorded the attendance with the following members: COUNCI�: Adams, �ibby, Peak, Selton, Budziszewski, Deshler and H STAFF: City Manager A. Norris, Assistant City Manager/Human Resource K. Therres, Finance Director C. Hansen, Public Works Directar T. and Police Chief S. Revering. Q ager II. AGENDA The Council and staff discussed the following agenda items 1. Setting the Date for Discussion, Public Input and Adoption of the Final 2015 Budget and Tax Levy 2. Review 2015 Special Revenue Funds Budgets 3. Review 2015 Debt Service Funds Budg 4. Review 2015 Internal Service F 5. Discuss 2015 Utility Funds Bud 6. Discuss 2015 Street Reco 7. Discuss 2015 Street Maini 8. Discuss Public Works Fac 9. Discuss Impact of Cash & 10. General Fund Follc�w U►� ' 11. D III. ADJC The � e Prelimi �1�7Tfi�il� action Fund'Budget nce Fund Budget - Bid Opening/Construction Cost ;stments on City Bond Rating Property Tax Levy to be Adopted on September 2nd Council adjourned at 10:20 p.m. Jim Adams, Mayar ATTEST: Anne Norris, City Manager 2772 Crystal City Council Budget Work Session minutes August 27, 2014 2773 Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the budget work session of the Crystal City Council was held at 6:45 p.m. on Wednesday, August 27, 2014 in the Community Room at City Hall located at 4141 Douglas Drive, Crystal, Minnesota. Mayor Adams called the meeting to order. I. ATTENDANCE The city manager recorded the attendance with the following members: m [li COUNCI� PRESENT: Peak, Selton, Adams, Budziszewski, Deshler anc Hoffmann (arrived at 7:13 p.m.). ABSENT: Libby. STAFF: City Manager A. Norris, Finance Director C. Hansen, Public W' T. Mathisen, Police Chief S. Revering and City Attorney M. Ing AGENDA The Council and staff continued discussion of the following agenda items: 1. Public Works Facility — Bid Opening/Constructic�n CostlProject Financing 2. General Fund Follow Up 3. Preliminary Property Tax Levy to be Adopted on September 2nd Council ADJOURNMENT The work session adjourned at 9:00 p. ATTEST: rris, Jim Adams, Mayor CONSENT AGENDA #1 APPLI�CATI�ONS FOR CITY LICENSE September 2, 2014 GASINSTALLER GHVAC LLC 16036 Mallard Way SE Prior Lake, MN 55372 MAG Mechanical LLC '7100 Medicine Lake :Rd Minneapo]is, MN 55427 MS Universal Inc 4785 Underwood Lane N Plymouth, MN 55442 Trent's Mechanical Inc 1285 114th Suite 110 Coon Rapids, MN 55362 PLUMBER Boevaag Plumbing Inc P O Box 1257 Prior Lake, MN 55372 Bonfe's Plumbing & Air 505 Randolph Ave St Paul, MN 55102 Edward Heins Plumbing & Heating 21124 Horseshoe Trail Hamel, MN 55340 F]ohaug Plumbing LLC 46 lOSth Lane NW Coon Rapids,lVlN� 55448 Glacier Plumbing Inc 680Valhalla Drive NE Cedar, MN 55011 Metrowide Plumbing LLC 4419 Hadley Ave N Oakdale, MN 55128 Mid-City Mechanical 9103 Davenport St NE Blaine, MN 55449 Murray Plumbing 19523 Jackson St NE Cedar,lVlN SSOI l. New Concepts Plumbing Service 5707 Excelsior Blvd St Louis Park, MN 55416 Thom's Plumbing & Construction 4881'7 Cty Hwy 61 Hinckley, MN 55037 RENTAL — NEW 5030 Angeline Ave N— Kirk Wettschreck 6726 Lombardy La — Deborah/Robert Brenton N(Conditional) 3347 Nevada Ave N#4704 — AS&W Rental Properties LLC 5614 5'7th Ave N� — Cory Knafla (Conditiona]) RENTAL — RENEWAL 5701 Adair Ave N— JDA Group LLC 3130 Aqui]a Ave N— Tom Durkin (Conditional) 4237 Douglas Dr N— Drew/Terri Kabanuk (Conditional) 5150 Florida Ave N— Gina Kilgore (Conditional) 2717-2719 Hampshire Ave N— Ebielador Itie (Conditional) 3132 Idaho Ave N— Paxton/Stacy Garner (Conditional) 4812-4814 Idaho Ave N— Belle Properties LLC 3220-3226 Nevada Ave N— Andrey/Tatiana Ryvlin (Conditional) 4816 Nevada Ave N— Paul/Melissa Gudnason (Conditional) 5844 Orchard Ave N� — Libman :Bros Inc (Conditional) 5825 Perry Ave N— Danny Vo/Christina Duong (Conditional) 3300 Welcome Ave N— Kay Marie/Carol's Investments 3815 Yates Ave N— A Sickman/T Masog (Conditional) 3306 Zane Ave N— M Joan Hasper (Conditional) 8000 32"d Ave N— Darrin/Carol Kapphahn (Conditional) 8209 32"d Pl N� — Stacy Hazuka (Conditional) 5316 35th Ave N— Jared/LeAnna Shcmillen 6908 42"d Ave N- Jeffery Berkowitz 6807 47th Ave N— Roy Malmberg '7127 52"d Ave N— Theron Fraser (Conditional) 5700 57th Ave N— Gerald Ziemiecki (Conditional) 6325 6l st Ave N� — Lee Winbush c/o Urban Enterprises (Conditional) Page 1 of l CONSENT AGENDA #2 t � '" ' � DATE: August 27, 2014 ��,��y ��` � TO. Anne�Norris; City Manager � �� City of Crystal City Councii � �� FROM: Charles Hansen, Finance Director � .,�w C� : RE Expenditures over $25;000 ' wxr,1 �,� ��.� � Pavee Descriptian Amount Metropolitan Council Environ S September Waste Water Service $109,932.72 Palda & Sons �nc July PN 13 Becker Pa�k;Streef Recanstraction $190,877.66 PERA Employee & city required contributions. pay date 8/15/2014 $43;340.49 West Metro Fire Rescue Dist August Fire $udget Ailocation $80,684.52 Blue Cross Blue Shield of MN SeptemberNealthlnsurancePremiums $86;102:50 S E H 1nc July PH 13 Becker Patk Street7econstraction $11,273.90 S E H Inc PH 14 LionsPark Street reconstractionfeasibility report $23,783.52 IRS - EFTPS Social Security; Medicare, & Federal i'ax WlH; pay date 8115l2014 $59;735:66 $605,730.97 GSTunynWccts Pu}1Checl:s�bber $25.000 M ��emo: .. .. .. .. .. .. .. .. .. .. .. ... . DATE: TO: FROM: SUBJECT: .. , � ... ., ..l. _ � , ..l. ■ .. COUNCIL STAFF REPORT Consent A�enda: Special Permit for WinelBeer Council Meeting: 9/2/2014 �' • 1 August 20, 2014 Crystal City Council City Manager Anne Norris Administrative Services Coordinator Trudy Tassoni Application for Special Permit for Beer/Wine at Bassett Creek Park Katherine Paronto has applied for a special permit to serve beer/wine at Bassett Creek Park on. Sunday, September '7, 2014, from 11:00 a.m. — 4:00 p.m. for a bridal shower. The City received a copy of the applicant's homeowner's po]icy showing coverage for this event. Council Action Requested As part of the Consent Agenda on September 2, 2014, approve the Special Permit for Beer/Wine submitted by Katherine Paronto. The application is available fo� �eview in the city cle�k's office. 1 � \ : _ � 1_� :' Memorandum : Ciev;r,f` CRYSTAL DATE: August 28, 2014 TO: Mayor and City Council Anne Norris, City Manager FROM: Charles Hansen, Finance Director SUBJECT: Consider a Resolution Amending Appendix IV of the Crystal City Code Relatina to the 2014 Fee Schedule - Utility Section Background The Cities of Crystal, Golden Valley and New Hope, acting as the Joint Water Commission (JWC), have decided to construct emergency water supply wells to provide water in the event that water supply from the City of Minneapolis is temporarily interrupted. Discussion The City of Crystal's share of the construction project is expected to be about $1,200,000. The City Council has decided to finance half of this cost by drawing from the cash balance in the Water Utility Fund and half by internal loans of $300,000 from the Sewer Utility Fund and $300,000 from the Street Light Fund. The loans will be repaid over ten years and carry an interest rate of 2%. Approval of the internal loans will be handled in a separate resolution. Revenues to replenish the Water Fund cash balance and repay the internal loans will come from the addition of a separate emergency water supply fee of $0.21 per 1,000 gallon unit of water sold. The implementation schedule for emergency water supply fee is uncertain. Staff availability is limited due to the project to upgrade the computers and software for the radio read water meters. The vendor for the water meter project has been unable to commit to a firm schedule. Annual certification of delinquent accounts also takes place at this time of the year. We are asking for the flexibility to initiate the emergency water supply fee on October 1, 2014 or a soon thereafter as staff time shall become available to complete the project. Conclusion Staff is requesting that the City Council consider adoption of the attached resolution. 1 � \ : _ � 1_� :' RESOLUTION NO. 2014- RESOLUTION AMENDING APPENDIX IV OF THE CRYSTAL CITY CODE RELATING TO THE 2014 FEE SCHEDULE — UTLITY SECTION WHEREAS, the City Council adopted Resolution 2013-71 on November 5, 2013 Adopting Appendix IV of the Crystal City Code Relating to the 2014 Fee Schedule; and WHEREAS, the cities of Crystal, Golden Valley and New Hope have decided to construct emergency water supply wells and the City of Crystal's share of the project cost is approximately $1,200,000; and WHEREAS, the City Council has decided to pay for Crystal's share of the project by implementing a fee of $0.21 per 1,000 gallon unit of water sold. WHEREAS, the City is also undertaking a project to upgrade computers and software for the radio read water meters, the timing of which is uncertain. NOW, THEREFORE, BE IT RESOLVED by the Crystal City Council that the 2014 Fee Schedule — Utility Section be amended to include an Emergency Water Supply Fee of $0.21 per 1,000 gallon unit of water sold. The fee shall take effect on October 1 2014 or as soon thereafter as it can be implemented on the City's utility billing system. Adopted by the Crystal City Council this 2°d day of September, 2014. Jim Adams, Mayor ATTEST: Christina Serres, City Clerk ' i � : ► \ _ : COUNCIL STAFF REPORT �`TY',of public Hearing: September 2, 2014 Council Meeting CftYSTAL New pawnbroker license located at 5508 West Broadway, ` submitted by Bravo Financial LLC, d/b/a PawnWorks FROM: Chrissy Serres, City Clerk DATE: August 27, 2014 TO: Mayor and City Council City Manager Anne Norris CC: Police Chief Stephanie Revering City Attorney RE: Application for a new pawnbroker license located at 5508 West Broadway, submitted by Bravo Financial LLC, d/b/a PawnWorks I. Overview On February 19, 2014, we received a Business Information Form from Mr. Greg Daniel proposing to operate a new pawn shop business in Crystal located at 5508 West Broadway. The name of the proposed business is Bravo Financial, LLC. Mr. Daniel described that the proposed business "will establish a best-of-class pawn shop providing short-term loans to consumers and selling jewelry, electronics, tools and other products at strong value price points". The Business Information Form was reviewed by Community Development Director Patrick Peters and a response letter was sent to Mr. Daniel on February 20, 2014. The letter explained the requirements and recommended next steps pertaining to his proposed business in the following areas: planning and zoning, building permits, and licensing. In March, Mr. Daniel submitted an application for a new pawnbroker license. A few months later, Mr. Daniel requested to withdraw his application and resubmit a new pawnbroker license application at a later date. Mr. Daniel has submitted a new application for a pawnbroker license and is requesting approval of the license to be located at 5508 West Broadway with the business name Bravo Financial LLC, d/b/a PawnWorks. II. �plication Review l. The qualifications of the applicant meet City Code Section 1177 and city staff received the following documents: Page 1 of 2 PUBLIC HEARING #1 a. City license application b. Certificate of Incorporation and Articles of Organization c. $5,000 bond d. Lease Agreement (pending license approval) e. Workers' Compensation insurance (pending license approval) 2. A background investigation was completed by Crystal Police Department. Police Chief Revering finds no disqualifying criminal history to prohibit issuance of the license. 3. The subject property is current on its property taxes and utility payments. 4. Mr. Daniel has indicated that no structural changes are planned for the premises. Proper permits will be obtained by licensed contractors prior to commencing any electrical, plumbing, mechanical, etc. work. 5. Mr. Daniel was given a copy of Section 1177 of the Crystal City Code, which includes city licensing conditions and the Council's policy regarding civil fines and penalties for violation of ordinances/laws. 6. The hearing notice was published in the Crystal/Robbinsdale Sun Post on August 21, 2014 and mailed to all property owners within a 500 foot radius. 7. The following exhibits are attached: A. Resolution issuing a pawnbroker's license to Bravo Financial, LLC B. PawnWorks Work Plan C. Copy of the public hearing notice, map and mailing addresses the notice was sent via First-class mail. D. Proposed store layout Requested Council Action Recommend approval of the resolution issuing a pawnbroker's license to Bravo Financial LLC, d/b/a PawnWorks. Upon request, app(ication documents are availabfe for review in the city cferk's office. Page 2 of 2 ' i � : ► \ _ : CITY OF CRYSTAL RESOLUTION # RESOLUTION ISSUING A PAWNBROKER'S LICENSE TO BRAVO FINANCIAL, LLC WHEREAS, Greg Daniel, on behalf of Bravo Financial, LLC, ("Applicant") submitted an application to the City for a pawnbroker's license ("Application") to operate a pawn shop at 5508 West Broadway Ave., Crystal, MN 55428 ("Business Site"); and WHEREAS, the Council hereby finds and determines as follows with respect to the Application: a. The Applicant is seeking a new pawnbroker's license to start a new pawn shop to be called Pawnworks ("Business") to be operated at the Business Site; b. Sections 1005.1, 1015.01, and 1177 of the Crystal City Code ("Code") require a pawnbroker's license issued by the City in order to operate the Business within the City; c. The Application submitted by the Applicant contains the information required by the Code, including the required fees, bond, and proof of financial responsibility, and the investigation conducted by the chief of police did not reveal any past disqualifying conduct; d. The Applicant prepared and submitted a"Pawnworks — Work Plan for the City of Crystal" dated July 10, 2014 ("Work Plan") in order to address concerns raised by the City regarding the operation of the proposed Business. The Work Plan provided by the Applicant is incorporated in and made part of this License; e. The Applicant indicated Greg Daniel will serve as the manager in charge of the Business ("Manager"); f. The Applicant satisfies the requirements of the Code to be eligible to receive a pawnbroker's license; and g. Given the nature of the Business, and the City's past experiences with a different pawn shop with which the Manager had some involvement, the Council determines it is in the best interests of the public to place specific conditions on the License to help ensure the Business is operated in a manner consistent with the Code and applicable laws. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal that it, based on application materials, the record of this matter, and the findings contained herein, hereby issues a pawnbroker's license to the Applicant pursuant to Section 1177 of the Code, conditioned on compliance with all of the following: The Business shall be operated in accordance with the Work Plan. No changes to the Work Plan shall be effective unless approved in writing by the City Clerk. If approved, the Business shall be operated in accordance with the amended Work Plan. 448644v3 TJG CR205-30 ' i � : ► \ _ : 2. The Business shall be conducted in compliance with all applicable provisions of federal, state, and local laws, rules, regulations, and ordinances including, but not limited to, Chapter X, Sections 1000 through 1015 and Chapter XI, Section 1177 of the Code (as amended). Furthermore, all required permits and permissions for the Business must be obtained prior to it beginning operations. 3. This License shall expire on December 31, 2014 as provided in Section 1005.11 of the Code. 4. If the Applicant applies for, and is issued, a renewal of the License in 2015, the Applicant shall have an independent audit performed of the inventory and transactions of the Business to confirm compliance with the requirements with applicable laws. The completed audit must be submitted to the City by July 15tn Additional annual audits shall be conducted and submitted for each renewal year until it is mutually agreed by the Business and the City that no further audits are necessary to ensure compliance. 5. The conditions imposed on this License shall carry forward and apply to any subsequent renewals of this License, unless they are expressly modified by the City in a future license renewal. 6. A violation of any of the conditions imposed on this License, or of any applicable laws, rules, regulations, or ordinances, may result in the City undertaking the procedure provided in the Code to revoke the License. Adopted this day of , 2014. BY THE CITY COUNCIL Jim Adams, Mayor Attest: Chrissy Serres, City Clerk 448644v3 'I'JG CR205-30 PAWNWORKS — WORK PLAN FOR CITY OF CRYS��LIC HEARING #1 Introduction Bravo Financial LLC d/b/a PawnWorks ("PawnWorks" or the "Company") is a Minnesota limited liability company building high end pawn shops providing a differentiated customer experience and initially targeting the Twin Cities market. The Company selected Crystal as one of its first locations and has a(contingent) lease for �8,500 square feet in the Crystal Gallery Mall at the corner of Bass Lake Road and Broadway. Background In its efforts to establish a new pawn store in Crystal, PawnWorks became aware of some reservations and areas of concern that city stakeholders had with the proposed new license. Through an in-person meeting with key city personnel and advisors, including the City Manager, City Clerk, Chief of Police and City Attorney, Company President and Owner Greg Daniel was made aware of these concerns and the need for any existing or proposed pawn shop to adequately address them before being allowed to start (or continue) operations. Mr. Daniel takes these concerns seriously. These concerns addressed in a manner that provides the Crystal stakeholders with a high level of trust, comfort and confidence that PawnWorks will be well run, accurate and timely in its reporting, will be cooperative with city departments/personnel, will be accountable for the actions of all employees, and be responsive to any feedback and/or requests from city departments or personnel charged with overseeing/monitoring such businesses. PawnWorks ownership and management are familiar with such expectations and excited to establish a business in Crystal that will regarded positively in the community, while providing a valuable product/service to consumers. Below is a list of some of the potential areas for concern and the methods by which PawnWorks intends to mitigate and address any issues. Potential Concern Possible Cause s Solution s APS descriptive field error Data entry (human) error; Better hiring, thorough training, lack of knowledge; employee termination; DL scanner intentional misconduct (goal of 99%+ accuracy) APS transmission error Software issue; Internet Institute daily report transmission & issue; human error receipt verification policy Inadequate Lack of awareness at store Ensure all mission critical response/correction time; and/or corporate; communication to stores is also lin erin issues received at cor orate H Misplaced items Human error; possible Better hiring, training, and a thoughtful dishonest employee storage plan. Prohibited transaction Ignorance;training Better training; procedures to involve H and/or Cit when in doubt Work Plan PawnWorks management believes that good corporate citizenship, consisting of positive and open relationships with customers, community and local government, are some of the keys to building a long-lasting, valuable business. The paragraphs below provide details regarding how the Company will manage its business in the critical areas of Human Resources, Information Systems, Operations and Government Relations to reduce potential concerns and to solve issues that do arise. 1. Human Resources The most important factor in determining the Company's success in its stores is hiring, training, and retaining high-quality, ethical, and productive employees. '�� Page 1 of 4 )uly 10, 2014 �aGvr�works PAWNWORKS — WORK PLAN FOR CITY OF CRYS�I��LIC HEARING #1 Hirin : PawnWorks seeks to hire hard-working, honest, ethical employees that naturally exhibit a friendly and helpful demeanor in interactions with customers, fellow employees and the general public. To identify the best candidates, the Company filters applications/resumes, conducts in-person interviews, and, unless legally prohibited, administers intelligence and drug tests. All candidates that pass these filters will have a final interview with the Company's owner. Hired employees are paid a premium wage, receive regular informal feedback, are given formal annual reviews, may become eligible for benefits, and have opportunity for advancement. b. Traininq: Both newly hired and existing employees receive training from PawnWorks management. Training ranges from learning the basics of the pawn business and customer service, to advanced sales techniques and refining knowledge of key products (e.g., jewelry, diamonds, and computers). Given the unique nature of the pawn business, every employee is trained on the criticai elements of assessing the value and source of the product (e.g., not stolen), understanding and properly explaining the details of the transaction (e.g., for a loan this is principal amount, fees, interest, and term and grace period length) to the customer, entering required data into the pawn software system, and preparing the product to be stored securely. Monitorina: The store manager and assistant manager train, manage, and are responsible for all store-level employees, including their loan, purchase, and sale transactions with customers. Further, the store manager reviews all loans and purchases done each day and looks for any potential errors or risks. Any found errors or issues are reviewed for cause. For found issues, the manager will communicate the issue to the employee and undertake one or more of the following actions: re-train employee, employee write-up, probation, or dismissal. Any instance of intentional deception or ill intent will result in immediate termination. All such interactions with employees are documented in the employee's confidential file and available for future reference. The Area Manager and/or Company President are responsible for hiring, training and oversight of store managers and assistant managers. Store reports are reviewed on a daily, weekly and monthly basis. Unannounced visits and audits are conducted regularly. Store loans and inventory are audited regularly on a cycle basis and completely on a quarterly basis. Managers are rewarded based on the extent to which the meet or exceed pre-determined goals, which include profitability, audit results, customer satisfaction and other store performance criteria such as employee management. 2. Information Systems The pawn industry is subject to state and local laws, rules and regulations that govern the activities and reporting requirements of the business. These regulations benefit citizens, customers and the regulatory authorities by ensuring that pawn shops in the community are complying with applicable laws and regulations and reporting key transaction data to the authorities. Pawn-specific POS software used by the business and the technology infrastructure that supports the system help ensure efficient compliance and reporting, For in-store POS, inventory management, and reporting PawnWorks will use the PawnMaster software application, by Data Age, Inc. PawnMaster, the pawn industry's largest pawn software company due to its earned position as the best available multi-store pawn software, offers strong inventory management, reporting, and backup capabilities. Furthermore, it has ��WtIWOC{CS Page 2 of 4 Juty 10, 2014 PAWNWORKS — WORK PLAN FOR CITY OF CRY��LIC HEARING #1 the ability to set a user's'�permissions" based on their employee classification and is currently used in 23 Minnesota stores and reporting successfully to the APS system. Management used PawnMaster in previous pawn businesses and is confident that it provides a solid, reliable foundation for managing the transactions, data and reporting for the Company's stores. The software is well-supported and updated and maintained regularly by Data Age. However, the software is only as good as the people using it so, once again, having high-quality, well-trained employees is critical to success. Operations To effectively take advantage of the human, technological and other resources of the Company, PawnWorks management knows that the store operations must be well-managed on a consistent basis. Specifically related to giving comfort to the local citizenry and regulatory authorities, this includes data entry, transaction review, APS compliance, reporting, error correction, auditing, and dealing only in goods for which it has all necessary permissions and licenses. [For reference, "Section 1177 — Pawnbrokers" of the Crystal City Code is attached hereto as an exhibit and provides the detailed requirements for pawnbrokers operating in the City of Crystal.] a. Data Entrv: All PawnWorks employees will be trained as to the proper entry and verification of required '�reportable transaction data" into the PawnMaster software system. The system will be programmed to only complete transactions for which all required fields have been entered. Per section 1177.13 of the Crystal City Code pawn stores must provide all reportable transaction data, on a daily basis, for every ��Reportable Transaction" as defined in the City Code. This data includes serial numbers, descriptive information, dollar amount of purchase/loan, loan details, customer details, valid ID, customer photo/video and all other items detailed in Section 1177.11 of the City Code. Transaction review: PawnWorks policy requires that the store manager review every loan and purchase transaction that was done on the previous day, The review includes checking that the item was entered and described accurately in the records and that appropriate valuation was ascertained for the collateral. Any observed discrepancies or valuation issues are discussed with the employee and, in the case of errors/discrepancies, are corrected. c. APS Compliance: all Minnesota pawn shops are required to use the automated pawn system (APS) to provide required "reportable transaction data" to that is made available state-wide to law enforcement (e.g., Crystal Police Department). To streamline the process, it is important to deploy pawn software that is designed to assist in reporting the data via the APS. The PawnMaster software is APS compliant and providing successful reporting for 23 pawn shops in Minnesota. With this effective reporting tool in place, accurately entered information will provide authorities with timely reports with little or no errors. (www.pawnmaster.com) d. Reportina & Error Correction: PawnWorks will report all required transaction data daily via electronic file from the PawnMaster system, PawnWorks anticipates that infrequently, but particularly when a system is first put in place, there will be human error and system issues. The Company expects some of the early system wrinkles to be ironed out before the Crystal store opens due to the previous opening of its Burnsville store, expected to occur in September 2014. The key to maintaining mutual trust and comfort with authorities is to quickly acknowledge the errors and correct them. To that end, PawnWorks will ensure that notification of any errors or issues in the store is provided to both the corporate office and the store manager. This way, �y�:.p^� �.ir�'t�'�1t1WOC�CS� Page 3 of 4 7uly 10, 2014 PAWNWORKS — WORK PLAN FOR CITY OF CRYS��BLIC HEARING #1 there is corporate oversight of reporting issues/errors to prevent sustained periods of repeated errors. Also, in the unlikely event a store manager is not cooperating, Company management will be aware of the issue and able to address it quickly. Auditina: Protecting the Company and customer assets is a critical aspect of any pawn operation. PawnWorks performs nightly jewelry counts, unannounced cycle counts of various inventory sub-categories, and scheduled quarterly audits of the entire inventory. These scheduled and un-scheduled audits/counts serves the dual purposes of keeping employees on their toes and helping the Company tightly manage its assets. f. Permitted Goods: PawnWorks will not accept or sell any unlawful goods and will obtain all licenses and permissions necessary to deal any particular category of goods. No firearms transactions will occur without appropriate licenses and approvals. 4. Government Relations PawnWorks is fortunate to have the privilege to do business in the cities in which its stores are located. The Company believes that a good relationship with city officials and the police department benefit both PawnWorks and the community. Maintaining a reputation as a good corporate citizen and positive contributor to the community is the foundation of a long-lasted and profitable store, This fundamental belief exists from the very top of the organization and is communicated regularly to all levels of management and staff. At all levels, from store team members up to the Company owner, PawnWorks welcomes all manner of communication and interaction with city personnel and is open to any and all forms of interaction including email, phone and formal and informal in-person meetings. This communication builds mutual familiarity and trust that will result in a tighter relationship between the city and the Company. Summary PawnWorks understands that serious, legitimate concerns exist related to pawn shops operating in the City of Crystal. The preceding paragraphs explicitly identified many of the most prevalent concerns and set forth a plan that describes how PawnWorks intends to mitigate, eliminate, resolve and/or address these concerns. We also understand that other issues may arise for which resolution requires a collaborative effort between PawnWorks, the City of Crystal, and their respective personnel. Greg Daniel, the President and Owner of PawnWorks, is available 24/7/365 and happy to meet, speak on the phone, or otherwise correspond on any and all matters or concerns related to the business. Feel free to reach Greg using the contact information below. Thank you. Greg Daniel gdanielCa�danieicap.com 612.801.0177 cell *� Page 4 of 4 ]uly 10, 2014 ��tivr�w�rks ' i � .: � \ _ : 4141 Douglas Drive North • Crystal, Minnesota 55422-1b96 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystahnn.gov C11"Y OF CRYSTAL NOTICE OF PUBLIC HEARING T� GONSIDER A PAWNBR�K�R LICENSE AT 5508 WEST BR�ADWAY Notice is hereby given that the Crystal City Council will hold a public hearing at 7:00 p.m. on September 2, 2014, in the Council Chambers located at 4141 Douglas Drive Narth, to consider a pawnbroker license at 5508 West Braadway, submitted by Bravo Financial, LLC d.b.a PawnWorks. Anyone wishing to express a view either in person or in writing will be heard at the public hearing. Auxiliary aids are available upon request ta individuals with disabilities by calling {763} 531-1145 at least 96 h�urs in advance. TTY users may call Minnesota Relay at 711 ar 1-800�627�3529. City Cler C� r� s Serres 3 � e��c�� °�r� � VIVIAN C SCHIRMERS 5640 HAMPSHIRE AVE N CRYSTAL MN 55428 TROYLYNE WOMACK 6516 BRENTWOOD AVE N CRYSTAL MN 55428 ERIC SIVERLING 6428 BRENTWOOD AVE N BROOKLYN PARK MN 55445 1EFF S HENKELS 6404 BRENTWOOD AVE N CRYSTAL MN 55428 GLORIA GONLEH 6329 BRENTWOOD AVE N CRYSTAL MN 55428 LILLIE BURANDT/BRENDA LESTER 7101 120TH AVE N CHAMPLIN MN 55316 DALE E KNOCK 6513 BRENTWOOD AVE NO CRYSTAL MN 55428 6600 BLR LLC 1639 UNIVERSITY AVE ST PAUL MN 55104 FTK PROPERTIES 6000 BASS LK RD #200 CRYSTAL MN 55429 PATRICIA ANN MANTHEY 6532 BRENTWOOD AVE N CRYSTAL MN 55428 BRIAN R& TIFFANY L RUFF 6508 BRENTWOOD AVE N CRYSTAL MN 55428 TIMOTHY RICHARD SMITH 6420 BRENTWOOD AVE N CRYSTAL MN 55428 RONALD T JOHNSON CAROLYN F NOETZEL 6309 BRENTWOOD AVE N CRYSTAL MN 55428 BARBARA EBERLING 6407 BRENTWOOD AVE N CRYSTAL MN 55428 VOGT HOMES LLC PO BOX 294 MAPLE PLAIN MN 55359 GERALD DAVID BELMORE 6521 BRENTWOOD AVE N CRYSTAL MN 55428 STEVEN F NEGAARD FREDERICK M NEGAARD 8116 OAKMERE RD BLOOMINGTON MN 55438 1ST REALTY COMPANY 2245 XANTHUS LANE N PLYMOUTH MN 55447 ' i � : ► \ _ : EERO & PIATNITSKIKH MATTSON 17184 80TH AVE N MAPLE GROVE MN 55311 NICOLE E ANDERT 6500 BRENTWOOD AVE CRYSTAL MN 55428 JACQUELINE A THOMAS 6412 BRENTWOOD AVE N CRYSTAL MN 55428 MICHAEL & MELISSA KARNICK 6321 BRENTWOOD AVE N CRYSTAL MN 55428 BELLE PROPERTIES LLC 6005 WYAZATA BLVD SUITE 4 SLP MN 55416 DAVID C JAEGER 6505 BRENTWOOD AVE N CRYSTAL MN 55428 RAY HOLLMAN 6529 BRENTWOOD AV N CRYSTAL MN 55428 ROSEN & ILIAN NICOLOV 6350 ARTHUR ST N E FRIDLEY MN 55432 WALGREEN CO #5883 ATTN TAX DEPARTMENT 300 WILMOT RD MS#3101 DEERFIELD IL 60015 BASS LK RD RETAIL ASSOC LLP CRYSTAL SHOPPING CTR ASSOC FOUR CROWN II INC 2227 UNIVERSITY AVE W 2227 UNIVERSITY AVE ATTN TAX DEPT #1570 ST PAUL MN 55114 ST PAUL MN 55114 7002 6TH ST N OAKDALE MN 55128 CNL APF PARTNERS LP POBOX1671 ORLANDO FL 32802 RICHARD A WOODIS 12434 ELM PARKWAY ROGERS MN 55374 J J KRANZ 5401 FLORIDA AVE N MINNEAPOLIS MN 55428 NICOLE LYNN LEE 5412 GEORGIA AVE N CRYSTAL MN 55428 JON D HUELSKAMP 4134 BRUNSWICK AVE N CRYSTAL MN 55422 TARGET CORPORATION T-0003 C/O PROPERTY TAX DEPT PO BOX #9456 MPLS MN 55440 REIGN MINISTRIES 5401 WEST BROADWAY CRYSTAL MN 55428 SALLY L HUEBNER 5400 GEORGIA AVE N CRYSTAL MN 55428 TRACY R MATHEWS 5413 GEORGIA AVE N CRYSTAL MN 55428 CRYSTAL GALLERY DEVELOPERS C/O MID AMERICA REAL ESTATE 5353 WAYZATA BLVD STE 650 MPLS MN 55416 ' i � : ► \ _ : HYDER INVESTMENT'S INC DBA MC DONALDS 7088 EAST FISH LAKE RD MAPLE GROVE MN 55311 REIGN MINISTRIES 5401 WEST BROACWAY CRYSTAL MN 55428 JOHN A BRANDON 5406 GEORGIA AVE N CRYSTAL MN 55428 ORVALL H NORBY 5407 GEORGIA AVE N CRYSTAL MN 55428 C/O MARVIN F POER & COMPAN P O BOX 52427 ATLANTA GA 30355 CALIBER-CHASE APT REIGN MINISTRIES �`�,�'j �jt(��SC,�'l� I4CCt-�'Q' LANG-NELSON & ASSOC INC 5401 WEST BROADWAY ,�y�� 4601 EXCELSIOR BLVD #650 CRYSTAL MN 55428 �� e�� '""'"�r,�� ST LOUIS PARK MN 55416 �1��,� N�J��/v � .. 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'°� � � �� ' o �(� , . , .. , „ . • ,. ; � . , ,^�' � , � tw j � �: a ; �� .... ,. .�. ,., ,* . . . � , , ,..,..., ..'�A� :,. . u � , .�n„ �.} . . � . . .... .. . .. . .. ., . � �' � ' �' � . 7� �� . . ; a� , ,. , , , . . . . . ,. � �� , , �' � � .�. � . � � � � . _ ,� . � , , , .��; � . _ . , ; . ,. , , , � . ,. . _ .. �� . , � �� . � , � ; , , :�,,,,��.. - � ��.�.,� .�.�.... ,�,.;. �..�. ; ,. : �., . ��•.. ,� . ; , . �•�� ,�. , . . ,. , � � _� � .. ' � � , { ' , . , ..r ` � � . ` ; ` • ' .. i : � �� . r , :: � � � , . � . , _; ;. ' ' � �� .,� � �� , � �—_.,.....,...., _ RE(iULAR A(iE�DA �� Memorandum iCIiYSTAL DATE: August 28, 2014 TO FROM Mayor and City Council Anne Norris, City Manager Charles Hansen, Finance Director � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ ..... SUBJECT: Consider a Resolution Adopting a Proposed 2015 Budget and Proposed Tax Levies Payable in 2015 Background: The City Council discussed the proposed budget at work sessions on August 7tn August 14t" and August 21St. The current draft of the proposed General Fund budget has revenues of $12,866,082 and expenditures of $12,866,082. Property taxes Property taxes payable in 2015 to support these budgets are as follows: General Fund Pool Market Value Ref. County Hwy 81 Debt Total General & Debt Service E.D.A. Total All Property Tax Levies 2014 $8,237,000 209,000 563,153 $9,009,153 208,000 $9,217,153 2015 $8,402,000 209,000 563,153 $9,174,153 239,000 $9,413,153 Chan e $165,000 0 0 $165, 000 31, 000 $196,000 Local Government Aid In 2013, the city received $1,455,066 of LGA from the state. All LGA was deposited in the General Fund. Percent 2.00% 0.00% 0.00% 1.83% 14.90% 2.13% In 2014, LGA increased to $1,643,830 with $1,455,066 deposited in the General Fund and the increase of $188,764 deposited in the Permanent Improvement Revolving Fund (PIR). There was an offsetting $188,764 reduction in the operating transfer from the General Fund to the PIR. For 2015, LGA is promised to be $1,681,036. The same $1,455,066 will be deposited in the General Fund and $225,970 will be deposited in the PIR. � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ ..... Resolution adopting a proposed budget and tax levies payable in 2015 A resolution is attached to adopt proposed budgets and tax levies for the General Fund, Debt Service Funds and the EDA Fund. It is necessary for the City of Crystal to certify its proposed tax levy for 2015 to Hennepin County no later than September 30, 2014. It will be possible to amend the budget and tax levy between now and December, when the final budget and tax levy must be adopted. During that time, the tax levy can be reduced from the proposed amount, but may not be increased. It is important that it be set high enough to accommodate the budget options the City Council wishes to consider during the fall. Frequently Asked Budget Questions A set of Frequently Asked Questions will be prepared as soon as the preliminary property tax levy is adopted. Any thoughts on new questions or specific points to be addressed in the questions will be welcome. City Council Actions: The City Council should conduct any further discussion needed regarding the budget. Minor changes can be made the night of the meeting. Changes can also be considered during the fall and incorporated into the final budget adopted in December. It is recommended that the City Council approve the resolution with any needed changes. � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ ..... RESOLUTION NO. 2014 - A RESOLUTION ADOPTING A PROPOSED 2015 BUDGET AND PROPOSED TAX LEVIES PAYABLE IN 2015 WHEREAS, State Law requires the certification of a proposed budget and proposed tax levies no later than September 30, 2014, and; WHEREAS, the City Council has met and discussed the proposed budget and tax levy, and: NOW, THEREFORE BE IT RESOLVED that there is hereby levied upon all taxable property located within the City of Crystal the following amounts: General Tax Levy $8,402,000 Market Value Based Referendum Levy $209,000 County Highway 81 Debt Levy $563,153 Housing and Redevelopment Authority Tax Levy $*239,000 * Not to exceed a levy of .0185% upon the estimated market value of all property located within the City of Crystal. BE IT FURTHER RESOLVED the City Clerk shall certify to the Hennepin County Auditor a copy of this resolution approving the 2015 property tax levies for the City of Crystal. BE IT FURTHER RESOLVED that the proposed 2015 budget of the General Fund is $12,866,082 and the proposed 2015 budget of the EDA is $371,669. Adopted by the Crystal City Council this 2nd day of September 2014. Jim Adams, Mayor ATTEST: Christina Serres, City Clerk � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ ..... Memorandum CITY o[ ;�RY$TAL DATE: August 27, 2014 TO: Mayor and Council Anne Norris, City Manager FROM: Charles Hansen, Finance Director SUBJECT: Setting the Date for Discussion, Public Input and Adoption of the Final 2015 Budget and Tax Levy. Background: The City Council must announce a date, time and place for a public meeting where the budget and tax levy will be discussed, citizens will have the opportunity to speak on the budget and the final budget and tax levy will be adopted. This may be at a regularly scheduled meeting between November 25 and December 30, 2014. Discussion: The 2014 City Council meeting schedule shows regular meetings on Tuesday, December 2"d and Tuesday December 16t". Either of these meetings could be used as the time for budget and tax levy to be discussed, citizen input allowed, and final adoption of the budget and tax levy. This was discussed at the August 21St work session and it was decided to use the December 2�d meeting for the budget discussions and actions. If needed, the adoption of the 2015 budget and tax levy can be continued to the December 16tn meeting. City Council Actions: I recommend that discussion, public input and adoption of the final 2015 budget and tax levy take place at a public hearing at 7:00 P.M., on Tuesday, December 2, 2014, at City Hall. As an alternative, the public hearing could be held at the meeting on Tuesday, December 16, 2014, except that if the meeting is on the 16th, there isn't another meeting to continue it to. Final decisions would have to be made that night unless a special meeting was scheduled prior to December 30th. A motion is required to set a date, time and place for a public hearing for discussion of, public input on and adoption of the final 2015 budget and tax levy. � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. COUNCIL STAFF REPORT CITYo( public Works Facility Contract Award CRYSTAL FROM: Tom Mathisen, Public Works Director & City Engineer TO: Anne Norris, City Manager (for September 2 Council Meeting) DATE: August 27, 2014 RE: Project # 2014-10 Public Works Facility Design-Construction Consider Award Resolution , In a very competitive bidding market, on August 19, 14 bids were received for the construction of the new Crystal Public Works Facility. The following are the low five bids: Big-D Construction MN $8,748,995 Ebert Construction $8,804,900 Donlar Construction Co. $9,016,500 Met-Con Construction Inc. $9,145,000 CM Construction, Inc. $9,215,905 There were two add/alternate construction items that are included in the above numbers. The first is an upgrade to the building roofing material from a ballasted (covered with rock) EPDM (rubber sheet) to a fully adhered (100% glued down, no rock) EPDM roof. Fully adhered will increase the life of the roof by at least 25% from 20 to 25 years, it makes the roof more serviceable with respect to finding leaks, and it makes the roof "solar ready" should the City ever choose to add solar panels. The other add/alternate bid item was to install a ground source heat pump system (geothermal) instead of natural gas furnaces and large rooftop AC units, to heat the office/lunchroom/meeting room/locker room, and the mechanics bays areas; and to air condition the same minus the mechanics bays area. The estimated payback time for the system is 7 years depending on weather conditions. Bid-D Construction's headquarters is in Salt Lake City, Utah, but does have an office and presence in Minnesota. Kodet Architects has reviewed the company's history and references, and has prepared the attached letter recommending the contract award. � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. With winter approaching, it is very important to award the contract at the September 2 council meeting. If that occurs, construction will start in approximately two weeks so that grading, footings, and other underground work can be completed prior to freeze up. It is recommended that the Council adopt the attached resolution awarding the contract to Big-D Construction, MN in the amount of $8,748,995. pectfully submit ed, Thomas � . Mathisen City Engineer/DPW i:/pubworks/projects/2014/2014-10 PW Facil Design Build/awardmem � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. RESOLUTION NO. 2014- AWARDING CONTRACT FOR PROJECT # 2014-10 I'UBLIC WOI2KS FACILITY DESIGN CONSTRUCTION WHEREAS, the Crystal City Council approved the Public Works Facility Design Construct Improvement Yroject # 2014-10, and authorized the preparation of construction plans and specifications by Kodet Architects; and WI-IF,IZI?�1S, the Ciystal City Council subsequently approved said plans and specif cations dated July 22, 2014, and autllorized solicitation of public bids foi• said construction; and WI-Il;REAS, f�otu-teen such bids were received and publicly opened on August 19, 2014, and the lowest five qualifying bids at•e tabulated as follows: Big-D Construction MN Ebert Construction Dontar Construction Co. Met-Con Construction Inc CM Construction, Inc. $8,748,995 $8,804,900 $9,016,500 $9,145,000 $9,215,905, and WI-ILREAS, Big-D Construction has successfully completed siinilar projects, has been vetted by Kodet Architects and the City Engineer, and is found to be qualified to coinplete said work. NOW, THrREFOIZI;, F3E I7' RESOLVFD that the Crystal City Council he��cby awards the contract for Ilnprovement No. 2014-10 to I3ig-D Construction MN in the amount of $8,748,995. BE IT FUR1�I-IER RESOLVED that the Mayor and City Manager are hereby aLithorized to sign such contract. Adopted by the Ciystal City Council this 2nd day of September, 2014 Jim /ldams, Mayor• A"I,TI :ST: Christina Ser-��es, City Clerk I:pub��orks/projects/2014/201�I-10 Public ��orks Facil Design l3uild/a��ardres �; � > EJ {�-iSt��i�;,1 lke�::S�itcciva�l � ic3�,�. I6:cV. .;: ., f . , '1 __ -- -- --- - - - I S(.ro��`Idn�l I��iid<<• • 1�ilnnc��polls, �vlfd 'iS�10.; I I5�1 1•.�I��,linna (� I;t. i i:.:'; I, - Fncslinflc� ri 17. i i i.l .i ; 1 I- d:l.iil .ir� h��.,�Ic�i�Ic�i.c uin � VJi�hsil�• v✓wti�v.I:ocloLc nm ;�U`�Util �%, ��) ��- Nls. ;liinc Nc�rris I'ublic \Vc�rl<ti Uirc�iur Nlr. �I�oni Mathiscn, PI�: (.:ity I�,nginccr City c�f Crystal �41�41 Uou`�.las Uri��c Ciysril, �•iN ��-4�2 Rc: Public \Vorl:s I'acililv ConU•act��r Lctter ul�ltccommcndation 1)c,ir ��Is. \�irris ancl \-1r. \�I�ilhi,cn: � . � � � . � . � . _ . . On ;�ugu�t ?7, ?(11 �4, lh� Cit�� uf Crystal rccci��cd hids I��r lhc n�-�� public ��url:s I�ucililv. �t�hc lo�v biddcr ��as 13i�-D Gun,tructiun li�r �hc �un��unt, as I��II��s: l3asc 13id nitcrnatc 11I nitcrnatc t:'� "fotal - S S,> I 1,> I 6.U0 S I », ;�45.00 ti S?, I ; I_00 _ _..- __ -- 5 S,i�1�,99�.0O 13i�-1) CunsU uctiun has pm�'icic�l �i hicl h��n�l an�l rccrivccl all lhc allcrnate� to thc hicl �Ic�cumcnts. �Vc havc recei� cd ,i Icltcr . I�roni 13i��-1) Constructi�>n lh.it lhcrc arc n�� irrc��ul.�rilirs in thcir bid an�l thcy arc rrady t<> cnlcr into a conu�act ��ilh lhc C'ity ul�Cr� stal li�r thc ahu� r bicl �inwunts, an�l tc� nicct all thc rcyuircmcnts ��f thc bicl dc�curncnts. 13ascd on thc abovc, Ku�lct ,Archi�cclur�il C�roup rccc�mmcn�ls ac-ccptancc ol�thc tihuvc bid from 13ig-D ConsU�ucUon. Sinccrel)', i�oi�>i�r� niici irri�.c�rui:;��. �;iz�>ui�, i,�ri�. �� '�-- . l�,d��ard.I. l�ocict..lr., 1=n1�\ cl: �vl� I�I.O?O ,{ � � �,, _, � 6 �� a. �.� �Y" �£S`+sr.1 � ��„�^ Architcr.turc • Intcriors • Planning � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. CITY OF CRYSTAL, MINNESOTA RESOLUTION NO. DECLARING THE OFFICIAL INTENT OF THE CITY OF CRYSTAL TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the "Reimbursement Regulations") providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not be deemed spent unless certain requirements are met; WHEREAS, the City expects to incur certain expenditures that may be �nanced temporarily from sources other than bonds, and reimbursed from the proceeds of a tax-exempt bond; and WHEREAS, the City has determined to make this declaration of official intent ("Declaration") to reimburse certain costs from proceeds of bonds in accordance with the Reiinbursement Regulations. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CRYSTAL AS FOLLOWS: 1. The City proposes to undertake the construction of a public works facility in the City (the "Proj ect"). 2. The City reasonably expects to reimburse the expenditures made for certain costs of the Project from the proceeds of bonds in an estimated maximum principal amount of $4,250,000. A11 reimbursed expenditures will be capital expenditures, costs of issuance of the bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement Regulations. 3. This Declaration has been made not later than 60 days af'ter payinent of any original expenditure to be subject to a reimbursement allocation with respect to the proceeds of bonds, except for the fo1]owing expenditures: (a) costs of issuance of bonds; (b) costs in an amount not in excess of $100,000 or 5 perceni of the proceeds of an issue; or (c) "preliminary expenditures" up to an amount not in excess of 20 percent of the aggregate issue price of the issue or issues that finance or are reasonably expected by the City to finance the project for which the preliminary expenditures were incurred. The term "preliminary expenditures" includes architectural, engineering, surveying, bond issuance, and similar costs that are incurred prior to commencement of acquisition, construction or rehabilitation of a project, other than land acquisition, site preparation, and similar costs incident to commencement of construction. 4. This Declaration is an expression of the reasonable expectations of the City based on the facts and circumstances known to the City as of the date hereo£ The anticipated original expenditures for the Project and the principal amount of the bonds described in paragraph 2 are consistent with the City's budgetary and financial circumstances. No sources other than proceeds of bonds to be issued by the City are, or are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside pursuant to the Ci1y's budget or financial policies to pay such Project expenditures. 5. This Declaration is intended to constitute a declaration of official intent for purposes of the Reimbursement Regulations. 440619v1 MNI JR110-43 � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. Approved this 2nd day of Septeinber, 2014, by the City Council of the City of Crystal, Minnesota. Mayor Attest: City Clerk 440619v1 MNI JR110-43 � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. CITY OF CRYSTAL, MINNESOTA RESOLUTION NO. RESOLUTION CALLING PUBLIC HEARING ON THE ADOPTION OF A FIVE-YEAR CAPITAL IMPROVEMENT PLAN AND THE ISSUANCE OF GENERAL OBLIGATION BONDSTHEREUNDER BE IT RESOLVED By the City Council of the City of Crystal, Hennepin County, Minnesota (the "City"), as follows: L Fursuant to Minnesota Statutes, Section 4'75,521, as amended (the "Act"), the City may issue general obligation bonds to finance capital expenditures under a five-year capital improvement plan without an election provided that, among other things, prior to issuing the bonds the City holds a public hearing regarding adoption of the Plan and the issuance of bonds thereunder. 2. The City has caused to be prepared its Capital Improvement Plan, 2014-2019 (the "Plan"), pursuant to the Act. 3. In accordance with the Act, the City Council hereby ca11s for a public hearing to be held on Tuesday, , 2014, at approximately PM, to consider the adoption of the Plan and the issuance of bonds thereunder. 4. The Council hereby authorizes and directs the City Clerk and City staff to publish a notice of public hearing in substantially the form set forth in EXHIBIT A attached hereto in the official newspaper of the City or a newspaper of general circulation in the City at least 14 but not more than 28 days before the date of the public hearing. Adopted by the City Council of the City of Crystal, Minnesota, this 2nd day of September, 2014. �� City C1erk 449256v1 MNI CR205-30 � 1 � 1 1 . .\... ....! \ .•.. _ . .!. ■ .. (��\��7■�, NOTICE OF PUBLIC HEARING NOTICE OF PUBLIC HEARING REGARDING A FIVE-YEAR CAPITAL IMPROVEMENT PLAN AND THE ISSUANCE OF GENERAL OBLIGATION BONDS THEREUNDER NOTICE IS HEREBY GIVEN that the City Council of the City of Crystal, Minnesota (the "City") will meet on Tuesday, , 2014, at or after PM in the City Council Chambers at City Hall, 4141 Douglas Drive North in the City, to hold a public hearing concerning (1) the adoption of a five-year capital improvement plan for the City prepared in coinpliance with Minnesota Statutes, Section 475.521, as amended (the "P1an"); and (2) the issuance of general obligation bonds (the `Bonds") thereunder for the purposes set forth therein. The principal amount of the Bonds to be issued in 2014 under the Plan shall not exceed $4,250,000. If a petition requesting a vote on the issuance of the Bonds, signed by voters equal to five percent (5%) of the votes cast in the City in the last general election, is filed with the City Clerk within thirty (30) days after the public hearing, the City may issue the Bonds only after obtaining approval of a majority of voters voting on the question at an election. A copy of the Plan is available for inspection in the City Clerk's office at City Hall. Questions or comments may be directed to the City Clerk at 763-531-1000. All interested persons may appear and be hard at the public hearing either orally or in writing, or may file written comments with the City Clerk before the hearing. Dated: [Date of publication� BY ORDER OF THE CITY COUNCIL OF THE CITY OF CRYSTAL, MINNESOTA /s/ Chrissv Serres City Clerk City of Crystal, Minnesota A-1. 449256v1 MNI CR205-30 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov CRYSTA� CITY COUNCI� SECOND WORK SESSION AGENDA Posted: August 28, 2014 Tuesday, September 2, 2014 To immediately follow the Regular City Council Meeting Conference Room A Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the second work session of the Crystal City Council was held at p.m. on Tuesday, September 2, 2014 in Conference Room A located at 4141 Douglas Drive, Crystal, Minnesota. I. Attendance C ..� �i-�i.- ��i� Hoffmann Norris Libby Peak Selton Adams Therres Mathisen Revering Gilchrist Budziszewski Serres Deshler I1. Aqenda The purpose of the work session is to discuss the following agenda item: • Review of North Lions Park Phase 14 Street Reconstruction Feasibility Study — Project No. 2014-14 I11. Adiournment The work session adjourned at p.m. Auxiliary aids are available upon request to individuals with disabilities by calling the City C/erk at (763) 531-1145 at leasf 96 hours in advance. TTY users may caN Minnesota Relay at 711 or 1-800-627-3529. COUNCIL STAFF REPORT CITYo( phase 14 North Lions Streets Feasibility Update CRY5TAL FROM: Tom Mathisen, Public Works Director & City Engineer TO: Anne Norris, City Manager (for September 2 Council Work Session) DATE: August 27, 2014 RE: Street Reconstruction Status and Project Costs — Project #2014-14 Introduction At the June 3, 2014 meeting, the Council ordered the Feasibility Study for the Phase 14 North Lions Park Street Reconstruction Project. Supporting documents are attached. The North Lions Park Project is scheduled for construction in the 2015-2016 timeframe. The Feasibility Study is nearing completion. A presentation will be made by SEH at the work session regarding the status of the project including the estimated cost and the outlook for the remaining Phases 15-16 projects. As the Council is aware, construction costs continue to increase from year to year, and estimating said costs are always a moving target due to fluctuations in oil and concrete prices, and issues with the labor market and overall economy. The cost estimates to be presented at the work session represent a best estimate based on information available today and historical information from previous projects as seen in the attachments. Important Topics Besides financing, several other important topics include the discussion of sidewalks, and the designation of 58th Avenue from Elmhurst to West Broadway Avenues as a State Aid route, Such a designation qualifies the route to use State Aid funds for reconstruction, and also, based on past practice, allows the use of State Aid funds to build a sidewalk on one side of the road. State Aid streets must be 32 feet wide to allow for parking on one side. The City standard for a local street is 30 feet wide. Based on State Aid rules changes effective January 2014, the City can now undesignate several State Aid streets in the Bassett Creek Park neighborhood, that tn were rebuilt using State Aid funds in 1996. These include the Medicine Lake Road/27 Avenue route from Douglas Drive to the pedestrian bridge. This route has not met State Aid requirements since the Highway 100 Project in the year 2000 created a dead end, but until the rules change, the City would have been penalized for an undesignation. The case is similar for Brunswick Avenue from Medicine Lake Road to 32"d Avenue, a portion of which was rebuilt in 1996, and the remainder is the only gravel road in the City. By moving some of this equivalent mileage to areas in the City yet to be rebuilt, the City can take advantage of using State Aid funds in the three remaining project areas. The State Aid program allows cities to designate up to 20% of their local street mileage as State Aid. It is important for Crystal to continue to have as close to the 20%, 17.94 miles, designated at all times. SUMMARY In order for the project to stay on schedule, it is important for the Council to reach some tentative conclusions regarding these topics at the work session so the report can be finalized for presentation at the September 16 council meeting. At that time, a resolution would be presented to order the project and schedule the public improvement hearing for October7, 2014. A neighborhood project meeting is tentatively scheduled for 6:30 p.m., Thursday, October 2 at City Hall. Respectfully ul 'tted, � . Tom Mathisen City Engineer/DPW I:pubworks/projects/Phase 14/feasibilityupdatemem � � 0 V J N _ �, � o. � 0 z C> U W a �� roo a cv c � � N � � U � o m O O E�� c'� � � 4( t i ��. ��y � . ��.._ � l�.1,_i� 1._l�._L� i �,' ( s1�lt'} � �.�" > - '�' : '�r Nt�r�h �ki�ns Park �t � ._ � _ � �� Skyway P�rk I �, � � � E _ - � � : �� ..� r.-.� .r� , ; � � ( �� : c � ��.,< , , � .f�` .4� � � .=: t _ � � j 0 � � J « , � l�, �-_= ; _ Z�T;A � _Cf;�In, �` s+5i H,�� ;�; � � � �� _ � -1 - ; �,: _ �-, -.. � ! � — , � �� -� �- �_ _�''jj [ �� : � _ "�; ! �, � � � (( ; � �� r.� � � E ;� �. �� _ � � �-__ � � ..!!��.. � - � L�mbardv La �� am6ai� a___ .�, i � � �,,, � _ _ - _� � � �� - � � , : _ t �,� 1 � �` �. �a� L .� .rt �` '- `� - � � ` _ _ �� . : __� � �. ! � � r > � � � � , r �. 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'�'� � � � � � c a�� - � Ave �_� _w �-- _,�._ � � l � s� � 1 57fn t\ra ` `` ��_ . �- • 1� ` � ` � ' Project Limits —: ��,; Aj _-_ , � � _ �_� a �, , � !� , ; � _ '� �, �,� , r—; ; � � Brenhaoad�va, _�. ;,.. City Limits _ � N �� - � _ , ,� �w_ _ �, � �___. � {' _ City af �rooklyn F'ark � ,y _� -t,: �,- ,� Bass lake Rd � � ' Gi$y of New Nope �_� , �v. _ _�a� i__ w _ _ ___ __-i i _ - _ �� ` � � � �� , ; Area not in Study �� y;::,- ,� � tro � �' � �� -:,n,�� wy,� `. ',> ��. �� ..�� V�� p 275 550 Feet FILE N0. CRYST 128041 � CRYSTpL, MINNESOTA 2015 • LIONB PARK STREET RECQNSTRUCTION CITY PROJECT NO. 2014-14 Street Reoonstruction Constructio� Unit Costs Comparison Per Phase Date: March 19, 2007 Revised: March 27, 20U7; September 4, 2008; September 11, 2008; September 15, 2008 Revised: August 31, 2010; September 7, 2010; September 15, 2010; March 28, 2011; May 23, 2011 Ftevised: August 24, 20i1; Augus4 31, 2011; September 2, 2011; September 12, 2Q11; March 30, 2d12 Revised: August 23, 2012; April 9, 2013; Augus4 22, 2014 P:1AElClCrvs1\128582\4-prelim-dsgn-rprts\43.54-Qtys\[phase t thru 16 unit cost comparison.zlsx]Untt Cost In0 Yr 3 io a row A 6 G D E F G H J K L M N O P Q R S T U V W X Y (1) Gosts without Sanitary, Watermain, and Private Costs (2) Costs are in year the project wes Built (Phases 1-13) {3) Based on Opinion of Probable Cost (4) Not Used (5) 14 Projects over 20 years (6) Cell Formula equal to G41B4 -1, etc. (7) Based on average annuai increase in construction cost between Phase 1 and 14 (8) Based on Awarded Bid Construction Cost Street Reconsiruation Consimclion Unit Costs Comparison Per Phase 5250.00 5225.00 $206.06 o $175.00 0 � m �$'150.00 m a oS125.00 U §100.00 $75.00 $50.OD 325.OD Year i � A B C D E F G H J K M N O P Q R / J SEN CRYSTAL, MINNESOTA 2015 - LIONS PARK STREE7 RECONSTRUCTION CITY PROJECT NO. 2014-14 Potential Future Single Family Duplex Assessment Rate Comparison Current Assessment Rate Trends vs. Projected Construction Cost Trends Date: September 11, 2008 Revised: September 15, 2009; September 2, 2010; 5eptember 7, 2010; September 15, 2010 Revised: March 28, 2011; August 24, 2011; August 3"t, 2011; September 2, 2011 Revised: September 12, 2011; March 30, 2012; August 23, 2012 ; August 27, 2012 Revised: March 14, 2013; August 22, 2074 P:�AE\C\Cryst\128582\4-prelim-dsgn-rprls\43.54-Qtys1[phase 1 thru 16 unit cost comparison.xlsx]Assess Analysis 3 in a row .� L � � ' (2C/2B)-1, etc. 4B-26, etc. Single Family/ Single Familyl Duplex Percentage Duplex Number of Assessment Change Assessment Year to Years Rate (PER between Rate (PER Year Year of between Phase LOT) (1) Phase LOT) 2) Difference Construction Projects 1 $2,782 N/A $2,782 $0 1995 N!A 2 $2,860 2.8% $2,910 $50 1996 � 3 $3,097 8.3% $3,044 :� 3= 1997 1 4 $3,190 3.0% $3,184 1998 1 5 $3,385 6.1 % $3,644 $259 2001 3 6 $4,124 21.8% $4,170 $46 2004 3 7 $4,248 3.0% $4,362 $114 2005 � g $4,248 0.0% $4,563 $315 2006 � g $4,683 10.2% $4,992 $309 2008 2 10 $4,683 0.0% $5,222 $539 2009 � 11 $4,917 5.0% $5,713 $796 2011 2 12 $4,917 0.0% $5,976 $1,059 2012 1 13 $5,286 7.5% $6,251 $965 2013 � 14 $5,828 10.3% $6,839 $1,011 2015 2 15 $6,265 7.5% $7,154 $889 2016 � 16 $6,735 7.5% $7,453 $748 2017 � (1) Actual costs are in year the project was built (Phases 1-13) (2) $2,782 Assessment in 1995 Dollars @ 4.60% per year (average annual increase in construction cost between Phase 1 and 14) (3) Assumes a 5.0°/a increase per year from previous Phase (4) Assumes a 7.5% increase per year from previous Phase '3) ;4) '4) � COUNCIL STAFF REPORT �� phase 14 Forest North Street Reconstruction CRYSTAL FROM: Tom Mathisen, Public Works Director & City Engineer TO: Anne Norris, City Manager (for June 3 City Council Meeting) DATE: May 29, 2014 RE: Consider Resolution Ordering Feasibility Study — Project #2014-14 Based on the results of the 2007 Update to the OveraN Street Reconstruction Study, a recent update based on field observations, and the continuing review of the financial health of the Street Reconstruction Fund, the Engineering Department is proposing to continue major street reconstruction in the City in 2015. In February 2013, the Council authorized aerial photography and contour mapping of that portion of Crystal in the Lions North and Twin Oaks Parks, and the Skyway neighborhoods. If the Street Reconstruction Program is to continue moving forward, it is important to take action at this time if the Phase 14 project is to be built in 2015. Due to the desired and required neighborhood involvement, plus the design time and State Aid review process, the project requires nearly a full year lead time in order to begin construction in late spring 2015. At the June 3 Council meeting, a feasibility study proposal and tentative project schedule prepared by Short, Elliot, Hendrickson (SEH), will be presented for the Phase 14 project area. A copy of the proposal is attached and shows a proposed cost of $51,591. It will be proposed to reconstruct Phase 14 in a manner similar to Phases 1— 13, including new storm sewer, drain tile, curb and gutter, recycling the existing asphalt and gravel base, and new asphalt pavement. As presented in the 2007 update report, and as observed during subsequent and recent evaluations in the field, the streets in the project area are in very poor condition. In addition, there are scattered areas with "B" and "D" curb, and many areas with no curb and gutter. The proposed funding is a combination of special assessments, State Aid gas tax funds, Storm Drain Utility funds, and Street Reconstruction Fund funds. A detailed proposed funding mechanism will be presented at the conclusion of the feasibility study in late summer for final consideration by the Council. Mr. Aaron Ditzler from SEH wili be at both the work session and the Council meeting to answer questions. It is recommended that the City Council adopt the attached resolution, authorizing the feasibility study for North Lions Park Phase 14 with SEH conducting the study. Respectfully submitted, Tom Mathisen, City Engineer i:/pubworks/projects/phasel4/feasibililymem COUNCIL STAFF REPORT ��Y�� Phase 14 North Lions Feasibility Study CKYSTAL FROM: Tom Mathisen, Public Works Director & City Engineer TO: Anne Norris, City Manager (for June 3 Council Work Session) DATE: May 29, 2014 RE: Discuss Commencement of Phase 14 Street Project #2014-14 The Phase 13 Becker Park Street Reconstruction Project began construction in Spring 2013 and will be completed by the end of June 2014 with the paving of the wear course layer of asphalt. This project started with the Feasibility Study ordered by the Council in June 2012. Phases 11 — 13 were built in three consecutive years with a break programmed in the schedule in 2014. In order to resume the reconstruction program, the Feasibility Study for Phase14 North Lions Park Neighborhood should be ordered this June in order to meet all the required deadlines. The purpose of the work session is to re-introduce the Council to the process for conducting a street reconstruction project, as it has been two years since the last project. Short, Elliot, and Hendrickson (SEH) has prepared a proposal to conduct the study which would be completed for review by the council at the end of the summer. Mr. Aaron Ditzler, SEH project manager, will be present to discuss the project. One of the first actions will be a first class mailing to impacted property owners alerting them to the project and requesting that they fill out a questionnaire relating to many aspects of the project. Respectfully submitted, Tom Mathisen, City Engineer/DPW i:/pubworks/projects/phase14/feasibilitywrksessmem