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2009.03.03 Council Meeting PacketMEETING SCHEDULE ON 3/3/2009 a) 6:30 — 6:55 p.m. b) 7:00 p.m. c) After the City Council Meeting EDA Meeting in the Council Chambers Regular City Council Meeting in the Council Chambers Council Work Session in Conference Room A to discuss: ® Alley speed bump policy ® 639 Wetland Work Plan 10 Who will preside over the Regular Council Meeting on 3/17/09 ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL ® REGULAR MEETING 9 TUESDAY, MARCH 3, 2009 6:30 PM CRYSTAL CITY HALL COUNCIL CHAMBERS 1. Call to order 2. Roll call 3. Approval of minutes from February 3, 2009 regular meeting, February 3, 2009 work session, and February 17, 2009 work session * 4. Consider amendments to the Home Improvement Incentive Rebate program and a contract with the GMHC Housing Resource Center to administer the program from April 1, 2009 through March 31, 2010 * 5. Consider approval for start-up of the Purchase -Rehab Downpayment Assistance program and a contract with the GMHC Housing Resource Center to administer the program from April 1, 2009 through March 31, 2010 * 6. Consider a resolution approving the participation of the Hennepin County Housing and Redevelopment Authority in construction of Living Works Lodge 11 at 3255-3257 Douglas Drive North (currently addressed as 3249) * 7. Other business 8. Adjournment * Materials attached 02/27/09 G:\EDA\Agendas\2009\03-03.doc Minutes of the Crystal Economic Development Authority Regular Meeting February 3, 2009 President Hoffmann 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: David Anderson, ReNae Bowman, Garry Grimes, Mark Hoffinann, Janet Moore, Laurie Ann Moore and Joe Selton. The following staff members were present: Anne Norris, Executive Director; Patrick Peters, Community Development Director; John Sutter, City Planner/Assistant Community Development Director; Charles Hansen, Finance Director; and Mike Norton, City Attorney. Motion by Commissioner Grimes and seconded by President Hoffinann to approve the minutes from the January 20, 2009 work session and special meeting. Motion carried. The EDA considered a house plan submitted by Avery Homes for a new house to be built at 5747 Oregon Court North. Motion by Commissioner Grimes and seconded by Commissioner Anderson to approve the house plan for 5747 Oregon Court North submitted by Avery Homes, subject to conditions in the staff report. Motion carried. The EDA considered a Resolution refinancing internal loans between TIF districts. Motion by Commissioner Laurie Moore and seconded by Commissioner Anderson to adopt Resolution 2009-04 approving the terms of an internal loan in connection with TIF District No. 3 (Suburban Site). Motion carried. Mr. Sutter offered a brief overview of the status of the foreclosed lots in Thorson Addition. Motion by Commissioner Selton and seconded by President Hoffmann to adjourn the regular meeting. Motion carried. The meeting adjourned at 6:55 p.m. Mark Hoffinann, President ATTEST: Garry Grimes, Secretary Minutes of the Crystal Economic Development Authority Work Session February 3, 2009 President Hoffmann called the work session of the Crystal Economic Development Authority to order at 9:20 p.m. Upon call of the roll, the following members were present: Mark Hoffmann, David Anderson, ReNae Bowman, Garry Grimes, Janet Moore, Laurie Moore and Joe Selton. The following staff members were present: Anne Norris, Executive Director; Patrick Peters, Community Development Director; and Mike Norton, Attorney. The EDA discussed the alternatives for expenditure of available increment in TIF District #1 (2150). The work session adjourned at 9:47 p.m. Mark Hoffmann, President ATTEST: Garry Grimes, Secretary Minutes of the Crystal Economic Development Authority Work Session February 17, 2009 President Hoffmann called the work session of the Crystal Economic Development Authority to order at 8:00 p.m. Upon call of the roll, the following members were present: Mark Hoffmann, David Anderson, ReNae Bowman, Garry Grimes, Janet Moore, Laurie Moore and Joe Selton. The following staff members were present: Anne Norris, Executive Director; Patrick Peters, Community Development Director; John Sutter, Assistant Community Development Director/City Planner; and Mike Norton, Attorney. The EDA discussed housing assistance programs for the 2009 EDA work program* The EDA continued its discussion of alternatives for expenditure of available increment in TIF District #1 The work session adjourned at 8:49 p.m. Mark Hoffmann, President ATTEST: Garry Grimes, Secretary EDA STAFF REPORT �icffy ILICZAL • Improvement Incentive .."•, FROM: John Sutter, City Plan ner/Assistant Community Development Director DEPARTMENT HEAD REVIEW: Patrick Peters, Community Development Director DATE: February 26, 2009 TO: Anne Norris, City Manager (for March 3, 2009 EDA meeting) SUBJECT: Consider amendments to the Home Improvement Incentive Rebate program and a contract with the GMHC Housing Resource Center to administer the program from April 1, 2009 through March 31, 2010 The FDA's Home Improvement Incentive Rebate program offers a rebate for improvements to owner -occupied homes. The rebate is 10%, 12% or 15% of home improvement expenses for owner -occupied properties in Crystal, depending on household income. The maximum rebate per property per year is $6,000 (having been increased from $3,000 two years ago). Since inception of the program, eligibility has been limited to households up to 110% of area median income. Currently the cost of the program is paid out of the FDA's local redevelopment fund. The program is administered under a special contract with the Greater Metropolitan Housing Corporation (GMHC) Housing Resource Center located at 2148 44th Avenue North in Minneapolis. The Housing Resource Center also serves residents of several adjacent suburbs in addition to Crystal, although the specific programs and services differ from city to city. In addition to the rebate program, the EDA provides $15,000 per year in funding for general technical assistance including on-site home improvement construction consultations and information about various financing mechanisms. Housing Resource Center services are free of charge to residents of Crystal and adjacent suburbs as well as north Minneapolis. A table summarizing the rebate program for the previous seven calendar years (2002 through 2008) can be found on the following page. PAGE 1 OF 4 HOME IMPROVEMENT INCENTIVE REBATES 2002-2008 TOTAL $ OF NUMBER OF AVERAGE HOMEOWNER CALENDAR REBATES REBATES REBATE SHARE PER YEAR APPROVED APPROVED AMOUNT REBATE$ 2002 $105,766 107 $ 979 $7.81 2003 $102,602 104 $ 987 $7.03 2004 $ 77,795 87 $ 894 $8.31 2005 $ 99,527 100 $ 995 $8.66 2006 $ 96,211 96 $1,002 $9.50 2007 $106,104 104 $1,020 $8.21 2008 $116,796 101 $1,156 $7.33 AVERAGES: $100,686 100 $1,006 $8.12 TOTAL $ OF NUMBER OF AVERAGE HOMEOWNER REBATES REBATES REBATE SHARE PER APPROVED APPROVED AMOUNT REBATE$ B. STAFF COMMENTS Staff recommends the following changes to expand the program, to take advantage of the excess increment available in TIF District #1 and encourage continued home improvements during tough economic times: ® Increase the maximum rebate from $6,000 to $10,000 per property per year. • Increase the rebate percentages as follows: - For households with income greater than 80% and not more than 120% (currently 110%) of area median income, increase the rebate from 10% to 15% of eligible project costs. - For households with income greater than 50% and not more than 80% of area median income, increase the rebate from 12% to 20% of eligible project costs. - For households with income not more than 50% of area median income, increase the rebate from 15% to 25% of eligible project costs. ® Increase the maximum household income eligible for the program from 110% to 120% of area median income. We anticipate that these changes will increase the annual expenditures from $120,000 ($110,000 for rebates and $10,000 for administration fees paid to GMHC) to $220,000 ($202,400 for rebates and $10,000 for administration fees paid to GMHC). If during the middle of the contract it appears that expenditures will outpace the amount budgeted, staff will ask the EDA to consider increasing the budget, rationing the funds, or some combination of the two. PAGE 2 OF 4 A table summarizing the various income limits can be found below: — — — — — — — — — — — D �M, 0 (D �W: EET—cn E, 0 C3� cq q q 'C q Z C: -I C -I ;� (0 00 00o000 I'D S, F ' a' M- E 0- a' 0 0 Cq C; c6 E — 0 C) cj r- t- r- r- N M �o E '0 o� E �g to I-- OD 0) 0 69 69 En 69 69 00 o. =0 o 0 P E 2 0 2 a) 2 cL CL.r- 0) d L N p Z to a- 0 LO 0 LO 0 C) t°0 0 0) CNCQ Cl 0 Ir i R C-4 6 C) C) 8 LD" CN - (D CD co 0)00•-t — E 6' 09, 69 0 U) a) .0 Iv E w (D �!R 08 Ike 0 0 0 - 0— 0 t U) 00 a) t= C: — 8 01 E . Q CN — 0 CD Cli Ce! 2 'a) CNr �: C; 06 'd C:1 Zo a) ou Co r- 00 00 CD (D 69. 69 U3, W 69 6-3 0 U) (.D 0 Ur 00 E r L h 0 C) (D 0 2 -2) C) a) CL CL (L CL Cq CL Z 00 000000c:)o 0 0 0 (D 0 C3 55 2 0 R Crt Vi 00 0 0 V N 0 r- C6 0 M D MWI-MMM!�F 0 613� 64 69- IA 6% 691 6,3. (,q. 3: 0 — — — — — — — — — — (CDU w >- SD 00000000 °.N28 W0000MOOMW*U 3: (S 0 N M W It M N N 0 ;�-- . c6 d id -� (d -: (6 �: 0 a) 2 E 5 V It U) (D (D r- Co Up CM 0 0, 69 69 69- U3- 69 Di W 0-> U CL 0 j:: (on 0) Oma`- E w EL LL E -0 0 U)a) , > 0 W . r,; Z CL Ca CD W C) 0 0 0 0 0 0 0 5 Ce) CI) V C, t'-! Lq "t 00 0 V W M 00 N a) CL (0 11 LO Lo to 0MNO= CL ai - 61), W 6� 1 69 a) a C:) M U9 69, V; 0 W 0 0 2 CD 0 C) 8 000000000 —,t6- 0 WO 00 C-1.) CI) C11 'It 'It r-� C11 I 1-0 6 N 0 0 M (D 0 CO CL!p -0 t = U) N Co Co It IT a to U) a) 61� 0), 69. W� W V3, u1j. to a) E co a) 10 E 8-:9 0 0 O.R) til 1 V; — — — — — - C: 19 0 42 0 U) �g CL0 0 0 0Up 1 00 0 UO 0 00 10 0 C:) - 2 U ) S 0.30 0 CU CD Vi vi 0 0q 00 Cj CN — Ct q r- B - Z I r,: (3i �Z Q) C_D -60) 11 U31 613, V) 69 W O C (D C: 0 2 n) W U- U^ CI - --------- U) D C) 3: O= UJ Z WN—NM-M C < D CO to 0 X PAGE 3 OF 4 Staff further recommends that, beginning April 1, 2009, the EDA would begin funding the program with available increment from TIF District #1. While this annual contract would expire on March 31, 2010, it is anticipated that the EDA will also fund the next contract (April 1, 2010 through March 31, 2011) from TIF District #1. We anticipate TIF District #1 expenditures of $210,000 per year including administration fees paid to GMHC. The only exception to TIF funding would be the small share of Crystal homes which are not located within the Redevelopment Project Area and therefore would not be eligible for TIF -funded rebates. The excluded residential properties are located in Thora Thorson Addition (57xx Oregon Ct), near Twin Lake in the Skyway, Twin Oaks and Cavanagh Oaks neighborhoods, south and east of Bassett Creek Park, and that part of the Winnetka Hills neighborhood west of the houses facing Winnetka Avenue. For those areas, staff recommends continuing to fund rebates out of the FDA's local redevelopment fund. We anticipate local redevelopment fund expenditures of $10,000 per year including administration fees paid to GMHC. In subsequent years, after TIF District #1 expires, its funding could be replaced by money from the TIF Housing Replacement Districts or the FDA's local redevelopment fund. The likely effect after March 31, 2011 would be to reduce the program's expenditures by reducing the rebate percentages, maximum rebate amount, income eligibility limit, or some combination of those three changes. The expectation is that economic conditions in general and housing/credit markets in particular will be improved by 2011, so homeowners will have more capacity to finance home improvements on their own. C. EDA ACTION REQUESTED Two resolutions which would allow the EDA to use tax increment for the rebate program are attached as Exhibit A. One resolution is for TIF District #1 (the source to be used for the proposed contract); the other is for the Housing Replacement Districts (a potential source after TIF District #1 is no longer available). The proposed contract is attached as Exhibit B. There would need to be two motions: The first encompassing both resolutions (Exhibit A), and the second encompassing the contract with GMHC (Exhibit B). PAGE 4 OF 4 1 1 1 1 1 1 ' H NO 1, 1 1, BE IT RESOLVED by the Board of Commissioners of the Crystal Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. The Authority administers Tax Increment Financing District No. 1 ("TIF District") and a Tax Increment Financing Plan ("TIF Plan") for that district, which TIF Plan was most recently modified December 1, 2008, all in accordance with Minnesota Statutes, Sections 469.174 to 469.176 (the "TIF Act"). 1.02. Under Section 469.175, subd. 4 of the TIF Act, the Authority is authorized to modify the TIF Plan without the notice and approval procedures required for approval of the initial plan if the modification does not involve: reduction or enlargement of the geographic area of the district, increase in the amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized, increase in the portion of the captured tax capacity to be retained by the Authority, increase in total estimated tax increment expenditures or designation of additional property to be acquired by the Authority. 1.03. The Authority has determined to expand the public purposes and objectives to be accomplished with tax increments from the TIF District, and to modify the categories of tax increment expenditures without increasing the total estimated budget or total bonded indebtedness in the TIF Plan. Section 2. TIF Plan Modified. 2.01. The section of the TIF Plan titled STATEMENT OF OBJECTIVES is hereby modified to add the following: In addition to all previous statements of objectives for the TIF District, the EDA intends to facilitate the acquisition, rehabilitation and construction of housing for persons of moderate income and their families, as such income levels are determined from time to time by the EDA in accordance with Minnesota Statutes, Sections 469.012, subd. li. Such efforts constitute a housing development project as defined in Minnesota Statutes, Section 469.002, subd. 15 and 460.017. Section 2.02. The section of the TIF Plan describing estimated uses of funds, pages 22 and 23, is modified to add the following: In the table on page 23, Uses of Funds, it is understood that the EDA may spend tax 4Z increments in any of the identified categories to pay the cost of undertakings that also constitute a X W housing development project under Minnesota Statutes, Section 469.017. Further, the term "Site Improvements/Preparation Costs" includes any work or undertaking to improve or rehabilitate homes occupied by persons or families of low or moderate income. 2.03. On page 24 of the TIF Plan, the paragraph titled "Pooling Limitations" is deleted. The TIF district was established prior to the effective date of Minnesota Statutes, Section 469.1763, so the pooling limitations in that statute do not apply to the TIF District. 2.04. Authority staff are authorized and directed to attach a copy of this resolution to the TIF Plan in the Authority's files for the TIF District, and to transmit a copy of the resolution to the Department of Revenue and the Office of the State Auditor. Approved by the Board of Commissioners of the Crystal Economic Development Authority this March 3, 2009. ATTEST: Secretary N President - =0 NXI) IN MV111110 112cm- N Diu WITIN NO I B1011 0 U 6111 IN L" LIN W No KIM 13 1 311 BE IT RESOLVED by the Board of Commissioners of the Crystal Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. The Authority administers Housing Replacement Districts, Phases I and Il ("the Housing Replacement Districts") and a Tax Increment Financing Plan ("TIF Plan") for those districts, which TIF Plan was most recently modified December 1, 2008, all in accordance with Laws 1995, Chapter 264, Article 5, Section 46, subdivision 2 as amended by Laws 2008, Chapter 366, Article 5, Section 20 (the "Special Law") and Minnesota Statutes, Sections 469.174 to 469.176 (the "TIF Act"). 1.02. Under Section 469.175, subd. 4 of the TIF Act, the Authority is authorized to modify the TIF Plan without the notice and approval procedures required for approval of the initial plan if the modification does not involve: reduction or enlargement of the geographic area of the district, increase in the amount of bonded indebtedness to be incurred, including a determination to capitalize interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized, increase in the portion of the captured tax capacity to be retained by the Authority, increase in total estimated tax increment expenditures or designation of additional property to be acquired by the Authority. 1.03. The Authority has determined to modify the categories of tax increment expenditures without increasing the total estimated budget or total bonded indebtedness in the TIF Plan. Section 2. TIF Plan Modified. 2.01. Exhibit I -A of the TIF Plan, describing Estimated Project Cost, is hereby modified to add the following: In the table describing Uses of Funds for Phases I and 2 on page 8, the term "Site Preparation/Public Improvements" includes any work or undertaking to improve or rehabilitate homes occupied by persons or families who meet the income requirements set forth in Minnesota Statutes, Section 469.1761. 2.02. Authority staff are authorized and directed to attach a copy of this resolution to the TIF Plan in the Authority's files for the TIF District, and to transmit a copy of the resolution to the Department of Revenue and the Office of the State Auditor. Approved by the Board of Commissioners of the Crystal Economic Development Authority this March 3, 2009. President ATTEST: Secretary 0 [a (April], 2009 —March 31,2010),,;;' aP Parties. This agreement is entered into between th6EC`6homic Development, Authority of the City of Crystal ("EDA") and the Greater Metro-D,61,"itan Housing Corporation '0 '�,'I�Pprovement incentive Rebate Program Title. This agreement is1m, Tegards to the Hom& ' administered for EDA by GMHC at the Northwest Housing ResourceCenter., Program 0 Ime. 1. Obje.efive. Encqpy,4ge''re'ln"ve-'s'tt'm'entirL,-ihe City's owner occupied housing stock, which makes ; ;approximately % of the City's housing units. EDA has determined that this is a housing deVdlbpment er Minnesota Statutes 469.017, and that households pr6'jq9t, i I meeting the mc one lity requirements described in Section 3 are considered to be �; e eligibility low or moderatejmcome households for the purposes of this project. I A secofidiiiy,6bjective is, on a more limited basis, to provide Last Resort grants that do not requite homeowner match. 2. Goal. Assist with improvements to approximately 120 houses per year (average Rebate estimated to be approximately $1,500). 02/26/09 GAHousing Programs\Home Improvement Incentive Rebate\2009.04.01 Agreement-DRAFT.doc Page 1 of 6 r. . 3. Eligibility. a. Type of Property. The following property types are eligible for either Rebates or Last Resort grants: ❑ Owner -occupied single family homes in the City;°of'Cystal, including owner occupied townhouses. '.�Oil ,j {ytiii. �' E` l ❑ Two family dwellings in the City of'Crystal; provided that (1) the owner occupies one of the units and th&property is homesteaded according to the Hennepin County Assessor, (2) the rental unit has a current rental! -license from the City of Crystal, and (3) the use of;the property as a two family dwelling is listed as a permitted use in the zoning d strict in which it is located. Before approving such a request; GMHC staff shall -'id' act,EDA staff to ensure that these requirements My,e been'rnet 7 `' s RentdDpfoperty;is not eligibl4,except for the aforementioned qualifying two farrrly dwellings, subject to pre approval by EDA staff. b } p, Opus ehold'Income''For Rebates, eligibility will be based on household income as;a;percentage of the regional median income. In the case of qualifying two ;'ai;4d;rl famrlq'dwellings, T gibility will be based on the household income of the owner occupant rig Eligibility shall be based on income as follows: ie> 25% Rebate: Households with income up to 50% of the regional median income. 20% Rebate Households with income from 50%-80% of the regional median income. 02/26/09 GAHousing Programs\Home Improvement Incentive Rebate\2009.04.01 Agreement-DRAFT.doc Page 2 of 6 15% Rebate: Households with income from 80%-120% of the regional median income. For Last Resort grants, only households with income up to 50% of the regional median income are eligible. i` C. Type of Expenditures. Materials and laborlexpendit'MH�resr�for mechanical, plumbing, electrical, exterior (roofing,,siding,'windows and£doors), general remodeling and additions are considered to be eligible expenditures, except for do-it-yourself projects in which case only materials costs are eligible,expenditures 4 € for either Rebates or Last Resort gran. #� Y 4. Funding Cycle. Funds shall be�dlsbursed on a first come„first-served basis beginning April 1, 2009 and ending whenever EDA'# funds have beem, expended or March 31, 2010, whichever is earlier. The maximum EDA �expeidituxe ;during the term of this agreement HOP shall be $220,000 including the maxitrium of $17,600 in administration fees described in i4 f Section, 6l� 3 ill -I,. lrr .S;4f5 ver i No more than $12,000 of EDA lu ds; shall be spent on Last Resort grants per year. Amount of Assistance F. =Rebates, depending on household income (see "Eligibility” "Gabove), the Rebateamoutit shall be 15%, 20% or 25% of eligible expenditures, not to Kik exceed $10,000 per property per year. Rebates are to be paid upon fulfillment of all { requirements established by GMHC and EDA including submittal of proof of payment and satisfactory completion of work including final inspection as verified by GMHC with 3is the city's Building Official. Rebates are not retroactive; an application must be made to and approved by GMHC before costs are incurred and work begins. For Last Resort grants, the maximum is $3,000 per property, one time. A property receiving a Last Resort grant will not be eligible again for Last Resort funds until the 02/26/09 GAHousing Programs\Home Improvement Incentive Rebate\2009.04.01 Agreement-DRAFT.doc Page 3 of 6 property has a new owner occupant who is similarly eligible for Last Resort grant. Other rules governing Rebates, including satisfactory completion and permit/inspection requirements, also apply to Last Resort grants. 6. Administration. Administrative fees paid to GMHC shall not exceed $17,600 for the term of this Agreement. GMHC shall field initial inquiries, 4'6661V q, and keep copies of all cost invoices, prepare quarterly progress reports, andrmits have 3hat all required pe been secured and that the work has been satisfactorily compl dtbd. F Administration fees shall be paid to GMHC as follows. Payable April 1, 2009: $7,48( slti Payable July 1, 2009: ;,,5% of any Rebates dillast Resort grants paid Apr. 1— June 30;",2009. Payable Oct. 1, 2009: 5% 6flany Reba es? 6 rL,a9f Resort grants paid July 1 — Sep. 30, 2009. o% Pay�able Jafi","l H2010:,�;6-,,,5% of any'0,6bates or Last Resort grants paid Oct. 1— Dec. 3 9 Payable Apre0lo 5% of any Rebates or Last Resort grants paid Jan. 1— Mar. . 31, 2010 Any'invoices fWadministration shall include the property address, Rebate amount and payment' date of any Rebates or Last Resort grants paid in the respective time period JV identified above. 7. Disbursement of Funds. GMHC will request an advance from EDA of $10,000 as soon as practicable after April 1, 2009. Once at least $8,000 of this initial payment has been disbursed and GMHC provides documentation thereof, EDA will make another 02/26/09 GAI-Iousing Programs\Home Improvement Incentive Rebate\2009.04.01 Agreement-DRAFT.doc Page 4 of 6 $10,000 payment. Disbursement in increments of $10,000 in like manner will continue in this fashion until EDA funds have been expended or March 31, 2010, whichever is earlier. Such disbursements shall be in addition to the disbursement of administrative fees described in Section 6. Advanced funds shall be restricted to Crystal projects only.,, W'6'nced funds shall not be used for GMHC's internal purposes such as operational cash=flow. y' N j l E, f l . GMHC shall provide to EDA copies of any audit. reports and fin'' ial management k+ reports that include funds disbursed under this agreement. ; z 8. Records Retention and Availability. GMHCshall retam'all records and files relating to `0 Pte= EDA funded projects for no;less than 6 years frointhe,date of expenditure. EDA retains ;i the right to inspect or audit all'records relating to Crystakprojects and the associated u funding. Upon proper notice, EDA4 or its Fdelegate (City Aditors, State Auditor etc.) can SFS. review and inspect all records t '4' `s iii tit t }; 9. Term.(Th6iterm of this'Agreement is from April 1, 2009 through March 31, 2010. t � ttaal t t t ':s• �v �. S k-WatureS t k r li f iy P11 .d e.,ilr rii For Economic Develo_pnent Authority of the City. of Crystal: Naive Anrie1. Norris ', Title: Executive; Director t it QtE Signature Date 02/26/09 G\Housing Programs\Home Improvement Incentive Rebate\2009.04.01 Agreement-DRAFT.doc Page 5 of 6 For Greater Metropolitan Hou ing Corporation: Name: Title: Signature M Date yƒ/\G 22 '0, �. c. �/� 02/26109 GAI-Iousing ProgramsNHome Improvement Incentive male 009.04.01 Agreement-DRAFT.doc Pa78y& J EDA STAFF REPORT �Ullytcif ICHYSTAL Downpayment Assistance for Purchase -Rehab �, jr KI(FHA 203K Program) i, FROM: John Sutter, City Plan ner/Assistant Community Development Director DEPARTMENT HEAD REVIEW: Patrick Peters, Community Development Director TO: Anne Norris, City Manager (for March 3, 2009 EDA meeting) SUBJECT: Consider approval for start-up of the Purchase -Rehab Downpayment Assistance program and a contract with the GMHC Housing Resource Center to administer the program from April 1, 2009 through March 31, 2010 A. BACKGROUND The Federal Housing Administration has a purchase -rehab loan program called "203K". 203K loans roll both the purchase price and rehab expenses into a single long-term loan with a fixed or adjustable rate. 203K loans cannot exceed the purchase price + rehab costs, or 110% of the HUD -appraised "after -rehab value", whichever is less. However, in addition to a 203K loan, low and moderate income buyers without sufficient savings may need downpayment or closing costs to make this sort of deal work. Brooklyn Center has approved such a program which would provide a grant of 3.5% of the purchase price up to a maximum of $7,000. This would be a new approach for Crystal, which has not provided direct assistance for home purchases. B. STAFF COMMENTS This sort of specific -purpose downpayment assistance program would provide an incentive for the purchase and rehab of houses that need significant repairs and are most likely to have a negative impact on the rest of the neighborhood if they remain in their current condition. It is important to note that this program would not encourage owner occupancy per se; rather, it facilitates the purchase and rehab of houses without regard to what happens to the house once the rehab is complete. The upside is that a PAGE 1 OF 3 downpayment assistance program might encourage people not otherwise able to come up with enough cash to buy a house and rehab it. The downside is that once the EDA has provided the grant and the transaction is complete, there would appear to be no recourse for the EDA if the property owner defaults on the 203K loan, turns the house into a rental, or sells it to someone else. In the end, though, the outcome would be rehabilitation of a potential or actual problem property in the community, regardless of what happens to it after the 203K purchase -rehab is completed. We would rely on FHA's risk analysis and mortgage underwriting to ensure that the buyer is qualified and capable of fulfilling the obligations under the program. Also, the 203K program has solid procedures and protections in place to ensure that the rehab work actually does get satisfactorily completed. If the EDA wishes to proceed with this new program, staff would recommend the following program criteria incorporated into the proposed contract attached as Exhibit B: 1. Only properties that are vacant and have been so for at least 30 days are eligible. 2. Only properties that have completed the city -required Code Compliance Inspection are eligible. FHA 203K inspection requirements do not supplant the requirement for a city inspection. 3. Only properties needing at least $15,000 in home improvements are eligible. EDA staff may reject an application if it does not concur with the applicant's estimate of the cost of the work. (Explanation: The $15,000 minimum for the improvements would mean that each dollar of grant money would leverage at least two dollars in private rehab investment for each house receiving EDA assistance. The purpose would be to target those properties that need significant rehab, not properties needing only "paint, carpet & appliances" which we are seeing private -sector investors doing on their own without government assistance. Simply put, if the house needs less than $15,000 in rehab, then it probably doesn't need a grant from the EDA.) 4. The grant shall not exceed 3% of the purchase price, up to maximum of $5,000. (Explanation: We recommend a somewhat smaller grant than Brooklyn Center because the depth and breadth of Crystal's problem is not comparable to Brooklyn Center's. Also, at 3.5%, the EDA would be paying the entire downpayment required by the 203K program; we believe that it's important for the buyer to put some cash into the downpayment.) 5. Prior to disbursement of EDA funds, the purchaser shall complete a homeownership training program pre -approved by EDA staff. 6. To enable the grants to be funded from the Housing Replacement TIF districts, the purchaser's household income shall not exceed 100% of area I A median income for 1-2 person households or 115% of area median income for 3+ person households. At present time, those income limits are as follows: HH MAXIMUM SIZE INCOME 1 $56,600 2 $64,700 3 $83,720 4 $93,035 5 $100,510 6 $107,870 7 $115,345 8 $122,820 EDA ACTION REQUESTED The proposed contract is attached as Exhibit B. Approval of the contract is subject to review and modification by the EDA Attorney prior to execution by the EDA Executive Director. In the event that the EDA Attorney determines that the Housing Replacement Districts' plans need to be modified, then subsequent action may be needed at a special meeting on March 17, 2009. If the districts' plans do not need to be modified, then no further EDA action would be needed. EDA action on the proposed contract attached as Exhibit B is requested. PAGE 3 OF 3 =W3,71-17711 (FHA 203K Program (April 1, 2009 —March 31,0 110) ,M� -W-Ph, A. Parties. This agreement is entered into betweeh"ithe Econ6m'ic Development 6fi* of the City of Crystal ("EDA") and the Greater Metropolitan "tHousing -*�C4'orporation 11G HC"). B. Program Title. This agreement is iftregdrds;f6,the Downpaybnt Assistance for Purchase - Rehab (FHA 203K Program) which is administer6d forlEDA'WOMM at the Northwest Housing Resource Center. C. Pro m=`Outline. T'�3', Objective. Pr6VId e do wn,p,4yment assistance to encourage private parties to purchase and rehabilitate vacant houses which need at least $15,000 in home improvements. EDA has determined that this is a housing development project under Minnesota Statutes 469.017, and that hopsqh6lds meeting the income eligibility requirements described in Section 3 are considered to be low or moderate income households for the purposes of this project. 0 2. Goal. Provide downpayment assistance to facilitate the purchase and rehabilitation of up to 10 houses. 3. Eligibility. 02/27/09 G:\Housing Prog rams\Down payment Assistance (203K Purch-Rehab)\2009.04.01 Agreement-DRAFT.doc Page 1 of 5 WFIn a) Single family detached houses in the City of Crystal are eligible. This term explicitly does not include attached dwellings on separate parcels such as townhouses, or duplexes or other residential properties having more than one dwelling unit on a single parcel. b) Only properties that are vacant and have been soffor;at least 30 days are eligible. 0 C) Only properties that have completed thecity required CodeCompliance SFE! Inspection are eligible. FHA 203Kinspection requirements dog not, supplant the requirement for a city inspection ' ;f d) Only properties needing at least $15,000 it ,,,h6me improvements are eligible. GMHC may reject an application if it does not'concur with the applicant's Y to, estimate of the cost of the;woikl e) Prior to disbA ursement of EDifunds, the house purchaser shall complete a } <i homeownerslnp Straining program pre -approved by GMHC. f) ° Eligibilitybf, I e house pure aser is limited based on household income. H!6deholds With, one or two persons will be eligible if their income does not R1�}Y t kY4ir t4 5 .„ t exceed 1;00% of the ie`gional median income. Households with three or more i` it ' Persons" Ube eligible if their income does not exceed 115% of the regional { ,E, median income. 4. Fundin.0 cle. Funds shall be disbursed on a first-come, first-served basis beginning g ,.Y April 1, 2009Yand ending whenever EDA funds have been expended or March 31, 2010, whichever is earlier. The maximum EDA expenditure during the term of this agreement shall be $55,000 including the maximum of $5,000 in administration fees described in Section 6. 02/27/09 G:\Housing Programs\Downpayment Assistance (203K Purch-Rehab)\2009.04.01 Agreement-DRAFT. doc Page 2 of 5 5. Amount of Assistance. Downpayment assistance shall be in the form of a grant in the amount of 3% of the property purchase price. No grant shall exceed $5,000 regardless of the purchase price. 6. Scope of Services and Administrative Fees. a) Scope of Services: (1) Providing information to residents and potential 'residents about the programs, upon request; (2) Assist EDA in developing r marketing materials and "',�6cedures for the programs; (3) Receipt of applications; (4) Processing applications; (5) Closing, grants to qualifed applicants in ;accordance with the applicable 'W N' program; (6) Overseeing the draw p16cessfor th&&n sjhcluding, as necessary, reviewing &AW§ �i6ii qwmig the progress of the work and collecting lien waivers and may, for this purpose, rely on third- bertificatesA4 occupancy. Consultant pArty,jepregentations and certifications. Provide, �re" "4bout the number of grants closed and the balance I; monthly p' s� remaining jfijthe program. J b) A ini dtive stt Fees. Administrative fees paid by EDA to GMHC shall not exceed "he term of this Agreement. $5,000 f6j GMHC shall field initial inquiries, receive r,.t dkep`�6opies of all cost invoices, prepare quarterly progress reports, and verify that ail required permits have been secured and that the work has been j� satisfactorily completed. Administration fees shall be paid to GMHC as follows: $500 shall be paid upon the successful closing of each 203K loan for which EDA downpayment assistance has been provided. 7. Disbursement of Funds. 02/27/09 WHousing Prog rams\Down payment Assistance (203K Purch-Rehab)\2009.04.01 Agreement-DRAFT.doc Page 3 of 5 III 7. Disbursement of Funds. a) Upon execution of a grant agreement with the home purchaser, GMHC may request an advance from EDA for the amount contained within that grant agreement. Such request shall include a copy of the grant agreement and any ffm C) d) additional documentation requested by the EDA. Upon closing of the house purchase, GMHC shall provide the EDA with a copy of the settlement statement together with an invoice for, Its administrative fee. If the grant amount has changed because,of arch ,ige in the house purchase price, then GMHC shall also provide a copy of an executed revised`grant agreement ip with the new amount, and either'reimburse th6lEDA or request aiS"WIP l'emental payment from the EDA depending oiillffidc,hange ln'the grant since the advance was paid to GMHC bytthe EDA. If the house purchase does. not 61680 within 60 days''of the EDA payment of the advance to GMHC, then GIv1HG shall refund the advance to EDA and no ` admiriistrativefees will be pard. 5 GMII Tshall provide to EDA copies of any audit reports and financial zt ..it r imanagement reports'ihat malude funds disbursed under this agreement. Records .t ;x1 and Av, ` ilability. GMHC shall retain all records and files relating to {kEDA funded projects for 'n" less than 6 years from the date of expenditure. EDA retains then"right to inspa'6 or audit all records relating to Crystal projects and the associated fundirig {;Upon.proper notice, EDA or its delegate (City Auditors, State Auditor etc.) can review and inspect all records. 9. Term. The term of this Agreement is from April 1, 2009 through March 31, 2010. Signatures. 02/26/09 G:\Housing Programs\Downpayment Assistance (203K Purch-Rehab)\2009.04.01 Agreement-DRAFT.doc Page 4 of 5 For Economic Development Authorjjy of the Cjjy of rystal: Name: Anne L. Norris Title: Executive Director 02/26/09 G:\Housing Programs\Downpayment Assistance (203Purch-Rehab)\2009.04.01 Agreement-DRAFT.doc Page5y5 Signature Date �\/% 2\§\�\ For Greater Metropolitan Housing Corporation. Name: Title: Signature �/\\��\/�` 2%\\\%G W 02/26/09 G:\Housing Programs\Downpayment Assistance (203Purch-Rehab)\2009.04.01 Agreement-DRAFT.doc Page5y5 ,.CITY Pf EDA STAFF REPORT 1CRYSTAL Resolution Authorizing Henn Co HRA Living Works Lodge 11 (3255-3257 Douglas Dr) FROM: John Sutter, City Plan ner/Assistant Community Development Director DEPARTMENT HEAD REVIEW: Patrick Peters, Community Development Director DATE: February 26, 2009 TO: Anne Norris, City Manager (for March 3, 2009 EDA meeting) SUBJECT: Consider a resolution approving the participation of the Hennepin County Housing and Redevelopment Authority in construction of Living Works Lodge 11 at 3255-3257 Douglas Drive North (currently addressed as 3249) Vinland Center is preparing the development of Living Works Lodge 11 on property currently addressed as 3249 Douglas Drive North. This will be a supportive housing facility comprised of a two family dwelling with six bedrooms per unit. The units' new address will be 3255 and 3257 Douglas Drive North. The Planning Commission and City Council previously approved rezoning and site plan review for the project. Vinland Center is seeking EDA approval for its use of Hennepin County Housing and Redevelopment Authority funds for this project. They are requesting that the EDA indicate its support by adopting the resolution attached as Exhibit A. EDA approval of the resolution is requested. PAGE 1 OF 1 RESOLUTION ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL LIVING WORKS CRYSTAL LODGE II 3255-3257 DOUGLAS DRIVE NORTH (CURRENTLY 3249 DOUGLAS DRIVE NORTH) WHEREAS, the Hennepin County Housing and Redevelopment Authority (HCHRA) in Resolution No. 08-HCHRA-7-S I RI has approved the use of a $ 450,000 Affordable Housing Incentive Fund grant for the Living Works Crystal Lodge 11 project, contingent upon the consent of the Economic Development Authority of the City of Crystal to HCHRA's participation in the project; and WHEREAS, said project will be constructed on a parcel currently addressed as 3249 Douglas Drive North, P.I.D. 20-118-21-14-0046, legally described as Lot 1, Block 1, James Addition; and WHEREAS, the Living Works Crystal Lodge 11 project, to be addressed as 3255 and 3257 Douglas Drive North, will increase the supply of affordable housing in the City of Crystal by providing two units of supportive housing for up to 6 persons per unit, or a total of 12 persons for the project; and WHEREAS, the grant from the HCHRA will complete the financing required for the project to go forward. BE IT RESOLVED by the Economic Development Authority of the City of Crystal, that the participation of the Hennepin County Housing and Redevelopment Authority in the Living Works Crystal Lodge II project is hereby approved on this 3 d day of March, 2009. Mark G. Hoffinann, President Anne L. Norris, Executive Director The current meeting packet is available on the city website at www.ci.crystal.mn.us THE CITY MANAGER'S COMMENTS ARE IN BOLD. Crystal City Council Preliminary Agenda & Meeting Schedule March 3, 2009 7:00 P.M. Council Chambers CALL TO ORDER, ROLL CALL, AND PLEDGE OF ALLEGIANCE II. PRESENTATION The Council will receive a presentation regarding food shelves serving Crystal from representatives of NEAR and PRISM. Jan and Cal Monroe of NEAR and Elizabeth Johnson of PRISM will present brief information about the services their respective organizations provide to Crystal residents. Ill. COUNCIL MEETING MINUTES The Council will consider the minutes from the following meetings in a single motion: a) The Council work session from February 12, 2009; b) The regular City Council Meeting from February 17, 2009; and c) Two Council work sessions from February 17, 2009. IV. CONSENT AGENDA The Council will consider the following items, which are routine and non -controversial in nature, in a single motion: 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 $15,000 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 temporary on -sale liquor license for a fundraising event on April 24, 2009submitted by St. Raphael's Church located at 7301 — 56th Ave N; 4. Approval of a lawful gambling application for an Exempt Permit to conduct a raffle on April 24, 2009 submitted by St. Raphael's Church located at 7301 — 56th Ave N. and 5. Adoption of a resolution approving the purchase of two replacement scoreboards at Becker Park. Crystal City Council Meeting Agenda March 3, 2009 V. OPEN FORUM (Open forum is a time set aside for individuals to address the Council on items not on the regular agenda. Each person is allowed three minutes to speak and no item may be addressed more than 10 minutes. No Council action may be taken during open forum. The Council may place items brought before it during open forum on future meeting agendas and staff reports may be required.) VI. REGULAR AGENDA 1. The Council will consider using charitable gambling proceeds for contributions to NEAR and PRISM food shelves. In 2008, the Council used charitable gambling proceeds to contribute funds to the two food shelves serving Crystal, NEAR and PRISM. Recommend approval of doing the same in 2009. 2. The Council will consider a resolution amending the 2008 General Fund Operating Budget. Finance Director Charles Hansen is finalizing the 2008 general fund budget, including necessary adjustments. Recommend approval of the resolution making these adjustments. 3. The Council will consider a resolution authorizing PIR expenditure for the purchase and installation of pool drain covers for compliance with the new state and federal pool safety laws. Last year, legislation was enacted requiring all public swimming pools to have safe drain covers. The 2009 PIR did not originally include these improvements but the PIR has now been modified. The pool drain covers need to meet the new laws before the 2009 pool season starts. Recommend approval of the resolution. 4. The Council will consider a resolution approving PIR expenditure for the purchase of a replacement 1994 One -Ton Dump Truck for the Utilities Department. The 2009 Utilities budget includes funds for replacement of this vehicle. Recommend approval of the resolution. Page 2 of 3 Crystal City Council Meeting Agenda March 3, 2009 VII. INFORMAL DISCUSSION AND ANNOUNCEMENTS a) The Planning Commission and City Council will participate in a joint work session on Monday, March 9 in the Community Room at City Hall. This work session will immediately follow the regular Planning Commission Meeting. b) The Council will conduct a budget work session at 7:00 p.m. on Thursday, March 12, 2009 in the Community Room at City Hall. c) The annual appreciation dinner for city volunteers serving on boards and commissions will be at the St. Petersburg Restaurant at 5:30 p.m. on Thursday, March 26, 2009. RSVP by March 19 to (763) 531-1118. d) The next City Council Meeting will be at 7:00 p.m. on March 17 in the Council Chambers at City Hall. VIII. ADJOURNMENT IX. MEETING SCHEDULE ON MARCH 3, 2009 a) 6:30 — 6:55 p.m. MUM c) After the City Council Meeting EDA Meeting in the Council Chambers Regular City Council Meeting in the Council Chambers Council Work Session in Conference Room A to discuss: ■ Alley speed bump policy ■ 639 Wetland Work Plan ■ Who will preside over the Regular Council Meeting on 3/17/09 Have a great weekend — looks like winter is back in force! See you Tuesday night! Page 3 of 3 Crystal City Council Meeting Packet March 3, 2009 Wei FWAI 11. PRESENTATION *The Council will receive a presentation regarding food shelves serving Crystal from representatives of NEAR and PRISM. Ill. COUNCIL MEETING MINUTES The Council will consider the minutes from the following meetings in a single motion: a) The Council work session from February 12, 2009; b) The regular City Council Meeting from February 17, 2009; and c) Two Council work sessions from February 17, 2009. Wo documentation provided in packets Crystal City Council Work Session minutes Thursday, February 12, 2009 1761 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 7:00 p.m. on Thursday, February 12, 2009 in the Community Room at City Hall located at 4141 Douglas Drive, Crystal, Minnesota. The Mayor called the work session to order. I. ATTENDANCE The city clerk recorded the attendance with the following members: COUNCIL: Anderson, Grimes, Hoffmann, Selton, J. Moore, Bowman, and.L. Moore STAFF: City Manager A. Norris, Assistant City Manager/HR Manager K. Therres, Police Chief J. Banick, Finance Director C. Hansen, Community Development Director P. Peters, and City Clerk J. Lewis. II. AGENDA The Council and staff discussed budget updates and reduction strategies. 111. ADJOURNMENT The work session adjourned at 9:19 p.m. ReNae J. Bowman, Mayor ATTEST: Janet Lewis, City Clerk G:\Council\Minutes2009kmin2-12-09ws.doc -1761- Crystal City Council Work Session Meeting minutes February 17, 2009 1762 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 6:45 p.m. on Tuesday, February 17, 2009 in Conference Room A at City Hall located at 4141 Douglas Drive, Crystal, Minnesota. The Mayor called the work session to order. I. ATTENDANCE The city clerk recorded the attendance with the following members: COUNCIL: Grimes, L. Moore, Selton, Anderson, Bowman, Hoffmann, and J. Moore STAFF: City Manager A. Norris, City Attorney M. Norton, and City Clerk J. Lewis II. AGENDA The Council and staff discussed Council salaries and charitable gambling proceeds for local food shelves (PRISM and NEAR). Ill. ADJOURNMENT The work session adjourned at 6:54 p.m. ReNae J. Bowman, Mayor ;■' Janet Lewis, City Clerk G:XCouncil\Minutes2009\min2-17-09wsbefore.doc -1762- Crystal City Council Meeting minutes February 17, 2009 1763 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, February 17, 2009 at 7:00 p.m., in the Council Chambers at 4141 Douglas Drive in Crystal Minnesota. Mayor ReNae Bowman called the meeting to order. Upon roll call, the city clerk recorded the following attendance: COUNCIL: Selton, L. Moore, Bowman, Hoffmann, J. Moore, Anderson, and Grimes. STAFF: City Manager A. Norris, City Attorney M. Norton, Police Chief J. Banick, Community Development Director P. Peters, Public Works Director/City Engineer T. Mathisen, Assistant Community Development Director/City Planner J. Sutter, and City Clerk J. Lewis. Mayor Bowman led the Council and audience in the Pledge of Allegiance. 11. ACKNOWLEDGMENT The Mayor acknowledged the donation of three replacement flags from the VFW Post 494 given to the Crystal Community Center. Ill. PRESENTATION Hennepin County Sheriff Rich Stanek and Patrol Captain Brian Kasbohm presented information on county services and programs to the City Council. IV. COUNCIL MEETING MINUTES The Council considered the minutes from the following meetings in a single motion: The regular City Council Meeting from February 3, 2009; and A Council work session from February 3, 2009. Moved by Council Member Hoffmann and seconded by Council Member Selton to approve the minutes of the following Council Meetings, in a single motion: ® The regular City Council Meeting from February 3, 2009; and ® A Council work session from February 3, 2009. Motion carried. V. 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; 2. Approval of disbursements over $15,000 submitted by the Finance Director to the City Council, a list that is on file in the office of the Finance Director; WC ... Mfi.2007.i.2-1749.d., 1763 Crystal City Council Meeting minutes February 17, 2009 1764 V. CONSENT AGENDA CONTINUED 3. Approval of the appointment as Assistant Weed Inspector for the city forester; and 4. Approval of two solicitation licenses for representatives from the Window Store to go door-to-door promoting new window and siding installation from February 19 — March 18, 2009. Moved by Council Member Selton and seconded by Council Member Grimes to approve the consent agenda. Motion carried. VI. PUBLIC HEARING 1. Mayor Bowman declared this was the date and time advertised for a public hearing at which time the Council received public comment and considered a resolution on housing and community development needs relating to the 2009 Urban Hennepin County Community Development Block Grant allocation. Assistant Community Development Director/City Planner J. Sutter presented to the Council and answered questions. The Mayor opened the public hearing for comment. The following person addressed the Council: Five Cities Transportation Program Coordinator Rita DeBruyn There being no one else wishing to appear before the Council to give testimony, Mayor Bowman declared the public hearing closed. Moved by Council Member Grimes and seconded by Council Member Anderson to adopt the following resolution, the reading of which was dispensed with by unanimous consent: RESOLUTION NO. 2009 - 19 APPROVING PROPOSED USE OF 2009 URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FUNDS AND AUTHORIZING SIGNATURE OF THE SUBRECIPIENT AGREEMENT WITH HENNEPIN COUNTY AND ANY THIRD PARTY AGREEMENTS Voting aye: Selton, L. Moore, Bowman, Hoffmann, J. Moore, Anderson, and Grimes. Motion carried, resolution declared adopted. GAC ... Mfi-200fth,2-17�9.d., 1764 Crystal City Council Meeting minutes February 17, 2009 1765 VII. OPEN FORUM No public comment was given during open forum. VIII. REGULAR AGENDA 1. The Council considered a private kennel license application for property located at 5841 Nevada Ave N submitted by Ron and Deanna Schuster. Ron and Deanna Schuster were in attendance and answered questions. Moved by Council Member Grimes and seconded by Mayor Bowman to approve the private kennel license application for property located at 5841 Nevada Ave N submitted by Ron and Deanna Schuster contingent upon passing quarterly inspections by the animal control officer. Voting aye: Selton, L. Moore, Bowman, Hoffmann, J. Moore, Anderson, and Grimes. Motion carried. 2. The Council considered a resolution appointing Gary Laurant to the West Metro Fire -Rescue District Board for a two-year term expiring December 31, 2010. City Manager A. Norris addressed the Council and answered questions. Moved by Council Member Grimes and seconded by Mayor Bowman to adopt the following resolution, the reading of which was dispensed with by unanimous consent: RESOLUTION NO. 2009 - 20 APPOINTING A PUBLIC REPRESENTATIVE TO THE BOARD OF DIRECTORS FOR WEST METRO FIRE -RESCUE DISTRICT BOARD Voting aye: Selton, L. Moore, Bowman, Hoffmann, J. Moore, Anderson, and Grimes. Motion carried, resolution declared adopted. OX ... infi,,20WMW-17�9.d.. 1765 Crystal City Council Meeting minutes February 17, 2009 1766 VIII. REGULAR AGENDA CONTINUED 3. The Council considered Application #2009-01 for a variance to reduce the west setback from 30 feet to 11 feet at 3425 Florida Ave N. Assistant Community Development Director/City Planner J. Sutter addressed the Council and answered questions. Moved by Council Member Hoffmann and seconded by Council Member Anderson to approve the variance to reduce the west setback from 30 feet to 11 feet at 3425 Florida Ave N, as recommended by the Planning Commission at its meeting on February 9, 2009, and based on the findings of fact outlined in Section B of the Staff Report. Voting aye: Selton, L. Moore, Bowman, Hoffmann, J. Moore, Anderson, and Grimes. Motion carried. 4. The Council considered a resolution ordering a public hearing on the proposed assessment for Parkside Acres - Street Construction Project #2008-10. Public Works Director/City Engineer T. Mathisen addressed the Council and answered questions. Moved by Mayor Bowman and seconded by Council Member Hoffmann to adopt the following resolution, the reading of which was dispensed with by unanimous consent: RESOLUTION NO. 2009 - 21 ORDERING A PUBLIC HEARING ON IMPROVEMENT PROJECT #2008-10 WELCOME NEIGHBORHOOD PHASE 10 STREET RECONSTRUCTION FOR PARKSIDE ACRES PROPERTIES Voting aye: Selton, L. Moore, Bowman, Hoffmann, J. Moore, Anderson, and Grimes. Motion carried, resolution declared adopted. QX .. 7.9,d.. 1766 Crystal City Council Meeting minutes February 17, 2009 1767 VIII. REGULAR AGENDA CONTINUED 5. The Council considered a resolution relating to state aid road parking restrictions on 47th Ave, Adair Ave, and Welcome Ave (Phase 10 Street Reconstruction Project). Public Works Director/City Engineer T. Mathisen addressed the Council and answered questions. Moved by Council Member Hoffmann and seconded by Mayor Bowman to adopt the following resolution, the reading of which was dispensed with by unanimous consent: RESOLUTION NO. 2009 - 22 RELATING TO STATE AID PARKING RESTRICTIONS ON 47Th, ADAIR, AND WELCOME AVENUES NORTH IN THE CITY OF CRYSTAL Voting aye: Selton, L. Moore, Bowman, Hoffmann, J. Moore, Anderson, and Grimes. Motion carried, resolution declared adopted. IX. INFORMAL DISCUSSION AND ANNOUNCEMENTS a) The Crystal Business Association meets at 8:30 a.m., Wednesday, February 18, in the Community Room at City Hall. b) The next City Council Meeting will be at 7:00 p.m. on March 3 in the Council Chambers at City Hall. X. ADJOURNMENT Moved by Council Member Selton and seconded by Mayor Bowman to adjourn the meeting. Motion carried. The meeting adjourned at 7:55 p.m. ReNae J. Bowman, Mayor ATTEST: Janet Lewis, City Clerk OAC.... 1767 Crystal City Council Second Work Session Meeting minutes February 17, 2009 1768 Pursuant -t * o 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 8:51 p.m. on Tuesday, February 17, 2009 in Conference Room A at City Hall located at 4141 Douglas Drive, Crystal, Minnesota. The Mayor called the work session to order. I. ATTENDANCE The city clerk recorded the attendance with the following members: COUNCIL: Hoffmann, Selton, L. Moore, Anderson, Bowman, J. Moore, and Grimes STAFF: City Manager A. Norris, City Attorney M. Norton, Community Development Director P. Peters, Assistant Community Development Director/City Planner J. Sutter, Police Chief J. Banick, and City Clerk J. Lewis II. AGENDA The Council and staff discussed the following agenda items: City Code amendment to provide for the registration of vacant buildings; WMFRD pensions; Local Board of Appeal & Equalization training for council members; and Continued budget review (if needed, from the 2/12/09 work session.) Ill. ADJOURNMENT The work session adjourned at 9:33 p.m. ReNae J. Bowman, Mayor ATTEST: Janet Lewis, City Clerk G:\Council\Minutes2009\min2-17-09wsafter.doc -1768- Meeting Packet March 3, 2009 IV. CONSENT AGENDA The Council will consider the following items, which are routine and non- controversial in nature, in a single motion: 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 $15,000 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 temporary on -sale liquor license for a fundraising event on April 24, 2009submitted by St. Raphael's Church located at 7301 — 56th Ave N; 4. Approval of a lawful gambling application for an Exempt Permit to conduct a raffle on April 24, 2009 submitted by St. Raphael's Church located at 7301 — 56th 56th Ave N. and 5. Adoption of a resolution approving the purchase of two replacement scoreboards at Becker Park. MARCH 3, 2009 ANIMAL KENNEL Ronald & Deanna Schuster 5841 Nevada Ave N Crystal, MN 55428 GAS INSTALLER Advanced Air & Fire 6724 Kingston Dr. Eden Prairie, MN 55346 Heating & Cooling Design 10830 Able St NE Blaine, MN 55434 Neighbor Dave's Heating & Air 14421 88th St NE Elk River, MN 55330 Paul Falz Co. 359 Atwater St. St Paul, MN 55117 PLUMBER AM Plumbing Inc 14965 209th Ave NW Elk River, MN 55330 Bartylla Plumbing & Heating 8675 126th StNHugo, N/1N 55038 Dean's Prof. Plumbing Inc. 21301 Cty. Rd 81, Rogers, MN 55374 Gavic & Son Plbg. & Water 12725 Nightingale St NW Coon Rapids, MN 55448 Perfect Plumbing 16609 Illinois Ave Lakeville, MN 55044 Professional Mechanical Services 6176 Mill Run Rd Monticello, MN 55362 RENTAL — NEW 6311 Corvallis Ave N — Brandon Bohn (Conditional) 4617 Louisiana Ave N — Richard Felling (Conditional) 6501 62 "d Ave N — Malcom and Stephanie Vinger (Conditional) RENTAL — RENEWALS 2900-2930 Douglas Dr — The Heathers Estates (Conditional) 4336 Douglas Dr — Arafat El Bakri (Conditional) 2736 Jersey Ave N — Dennis and Barb Arel (Conditional) 3447 Louisiana Ave N — Olivet Baptist Church (Conditional) 5701 Maryland Ave N — Dennis and Mama Luer (Conditional) 5603 Orchard Ave N — GF Crystal Inc (Conditional) 3016 Sumter Ave N — Crystal Village (2009) 3 016 Sumter Ave N — Crystal Village (2010 Conditional) 3815 Yates Ave N — Aaron Sickman/Thomas Masog (Conditional) 4422 Yates Ave N — Susan and James Thillman 8009 33" PI N — Mike Maher Et AL (Conditional) 5 024 51St Ave N — Claudette Shafer 6001 56th Ave N — J P Demetriou (Conditional) 6017 56th Ave N — J P Demetriou (Conditional) 1 of 1 2/27/2009 CcyoI CRY STAL DATE: February 26, 2009 TO: Anne Norris, City Manager City of Crystal City Council FROM: Charlie Hansen, Finance Director RE: Expenditures over $15,000 C— H Payee Description Amount IRS Social Security/Medicare - Federal Tax W/H P/R 02/20/09 PERA PERA P/R 02/20/09 Employee/City Contributions City of Brooklyn Park July - December 2008 HRG Admin Fees Kennedy & Graven Trust Acct Escrowed Money to Purchase Property @ 3311 Hampshire Ave N City of New Hope July - December 2008 Animal Control GMHC Home Improvement Incentive Rebate Program HealthPartners March Premiums Metro Council Environmental Service March Wastewater Cost GAB=da\Amts Payab1c\Ch=ks ova 15,000.xls 50,093.77 38,865.81 31,921.00 96j500.00 25,882.82 22,392.58 79,295.29 101,456.73 44b,4Ud.UU Minnesota Department of Public Safety ALCOHOL AND GAMBLING ENFORCEMENT DIVISION 444 Cedar Street Suite 133, St. Paul, MN 55101-5133 PHONE (651) 201-7507 FAX (651) 297-5259 TTY (651) 282-6555 www dps state.mn.us FOR A 1 TO 4 DAY TEMPORARY ON -SALE LIQUOR LICENSE TYPE OR PRINT INFORMATION NAME OF ORGANIZATION STREET ADDRESS ?3L?/ Aq,5,5 NAME OF PERSON MAKING APPLICATION DATES LIQUOR TO BE SOLD OR FURNISHED tl,, 1Y, ® 9 ORGANIZATION OFFICER'S NAME F� ek- jU-PjVAJeo— ORGANIZATION OFFICER'S NAME Location license will be used. If an out Will the applicant contract for intoxicati licensee providing this service. WI -)-e F Dear Will the applicant carry liquor liability it name and amount of coverage. DATE ORGANIZED TAX EXEMPT NUMBER ;,/4 Y/-^ 672-C/96 YOAV, a CITY STATE ZIPCODE Cr tj BUSINESS PHONE HOME PHONE 63 S'3? - ®l ?43 �- C a TYPE OF ORGANIZATION (Circle one) CLUB CHARITABLE 6ELIGIOUOOTHER NONPROFIT ADDRESS 7_3 ® / 6,4-sS 1..� ADDRESS oor area, describe 'i* // V,S ervice? If so, give thename and address of the liquor If so, please provide a copy and provide the carrier's y� c)f �c p� FA APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL & GAMBLING ENFORCEMENT City/County C.PJ Date Approved City Fee Amount j+`� License Dates Date Fee Paid Via/ 6 a J DG 4 :1-8 �11' Signature City Clerk or County Official Approved Director Alcohol & Gambling Enforcement NOTE: Submit this form to the city or county 30 days prior to event. Forward application signed by city and/or county to the address above. If the application is approved, the Alcohol & Gambling Enforcement Division will return this application to be used as the License for the event. `'J Certificate ®f Coverage Date: 7/8/2008 Certificate Holder This Certificate is issued as a matter of information only and Archdiocese of St. Paul -Minneapolis Chancery Office 226 Summit Avenue confers no rights upon the holder of this certificate. This certificate does not amend, extend or alter the coverage afforded below. St. Paul, MN 55102 Company Affording Coverage THE CATHOLIC MUTUAL RELIEF SOCIETY 10843 OLD MILL RD OMAHA, NE 68154 Covered Location Church of St. Raphael 7301 Bass Lake Road Crystal, MN 55428-3889 Coverages This is to certify that the coverages listed below have been issued to the certificate holder named above for the certificate indicated, notwithstanding any requirement, term or condition of any contract or other document with respect to which this certificate may be issued or may pertain, the coverage afforded described herein is subject to all the terms, exclusions and conditions of such coverage. Limits shown may have been reduced by paid claims. Type of Coverage Certificate Number Coverage Effective Date Coverage Expiration Date Limits Property Real & Personal Property General Liability General Aggregate ®✓ Occurrence Products-Comp/OP Agg Personal & Adv Injury ® Claims Made 8589 7/1/2008 7/1/2009 Each Occurrence 500,000 Fire Damage (Any one fire) Med Exp (Any one person) Excess Liability 8589 7/1/2008 7/1/2009 Each Occurrence 500,000 Other Crime 7/1/2008 7/1/2009 Each Occurrence 10,000 Description of Operations/Locations/Vehicies/Special Items { Includes Liquor Liability and $10,000 Fidelity Bond for Charitible Gambling. Holder of Certificate Cancellation Additional Protected Person(s) Should any of the above described coverages be cancelled City of Crystal, MN before the expiration date thereof, the issuing company will endeavor to mail 30 days written notice to the holder of certificate named to the left, but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives. Authorized Representative 0111000117 `'J ENDORSEMENT (TO BE ATTACHED TO CERTIFICATE) Effective Date of Endorsement 8/1/2008 Charge Credit Cancellation Date of Endorsement 2 Certificate Holder Archdiocese of St. Paul -Minneapolis Chancery Office 226 Summit Avenue St. Paul, MN 55102 Certificate No. 8589 of The Catholic Mutual Relief Society is amended as follows: SECTION II - ADDITIONAL PROTECTED PERSON(S) It is understood and agreed that Section II - Liability (only with respect to Coverage D - General Liability, Coverage F - Medical Payments to Others and Coverage H - Counseling Errors and Omissions) amended to include as an Additional Protected Person(s) members of the organizations shown in the schedule, but only with respect to their liability for the Protected Person(s) activities or activities they perform on behalf of the Protected Person(s). It is further understood and agreed that coverage extended under this endorsement is limited to and applies only with respect to liability assumed by contract or agreement; and this extension of coverage shall not enlarge the scope of coverage provided under this certificate or increase the limit of liability thereunder. Unless otherwise agreed by contract or agreement, coverage extended under this endorsement to the Additional Protected Person(s) will not precede the effective date of this certificate of coverage endorsement or extend beyond the cancellation date. Schedule - ADDITIONAL PROTECTED PERSON(S) City of Crystal, MN Remarks: Coverage extends only for claims arising, directly & solely, from the negligence of the Covered Location, during the course of their Parish Festival, August 1-3, 2008. Includes Liquor Liability and $10,000 Fidelity Bond for Charitible Gambling. PKS-122 (1-99) �t— Authorized Representative Minnesota Lawful Gambling L 22 Application for Exempt Permit An exempt permit may be issued to a nonprofit organization that: - conducts lawful gamblirtg on five or fewer days, and - awards less than $50,000 in prizes during a calendar year. Page 1 of 2 9/08 For Board Use Only Check # ORGANIZATION INFORMATION Organization name Previous gambling permit number ST RAPHAEL CHURCH AND SCHOOL Type of nonprofit organization. Check one. 13 Fraternal FRR Religious Meterans 13 Other nonprofit organization Mailing address city State Zip Code County 7301 BASS LAKE RD CRYSTAL MN 66428 Name of chief executive officer (CEO) Daytime phone number Email address FR. MARK JUETTNER 763-537-8401 Attach a copy of ONE of the following for proof of nonprofit status. Check one. Do not attach a sales tax exempt status or federal ID employer numbers as they are not proof of nonprofit status. oNonprofit Articles of Incorporation OR a current Certificate of Good Standing. Don't have a copy? This certificate must be obtained each year from: Secretary of State, Business Services Div., 180 State Office Building, St. Paul, MN 55155 Phone: 651-296-2803 FRIRS income tax exemption [501(c)] letter in your organization's name. Don't have a copy? To obtain a copy of your federal income tax exempt letter, have an organization officer contact the IRS at 877-829-5500. no IRS - Affiliate of national, statewide, or international parent nonprofit organization (charter) If your organization falls under a parent organization, attach copies of both of the following: a. IRS letter showing your parent organization is a nonprofit 501(c) organization with a group ruling, and b. the charter or letter from your parent organization recognizing your organization as a subordinate. 13 IRS - proof previously submitted to Gambling Control Board If you previously submitted proof of nonprofit status from the IRS, no attachment is required. GAMBLING PREMISES INFORMATION Name of premises where gambling activity will be conducted (for raffles, list the site where the drawing will take place) CHURCH OF ST RAPHAEL Address (do not use PO box) city Zip Code County 7301 BASS LAKE RD CRYSTAL 55428 Date(s) of activity (for raffles, indicate the date of the drawing) 4/24/2009 to 4/2412009 � '. 3 da Check the box or boxes that indicate the type of gambling activity your organization will conduct: Fj Bingo* Z Raffles [—] Paddlewheels* F-1 Pull -Tabs* E]Tipboarde * Gambling equipment for pull -tabs, bingo paper, tipboards, and Also complete paddlewheels must be obtained from a distributor licensed by the Page 2 of this form. Gambling Control Board. EXCEPTION: Bingo hard cards and bingo number selection devices may be borrowed from another organization authorized to conduct bingo. Print Form] To find a licensed distributor, go to www.gcb.state.mn.us and click on List Reset Form of Licensed Distributors, or call 651-639-4076. Page 2 of 2 9/08 575 If the gambling premises is within city limits, If the gambling premises is located in a township, a a city official must check (X) the action that the county official must check (X) the action that the county city is taking on this application and sign the is taking on this application and sign the application. A application. township official must also sign the application. _The application is acknowledged with no waiting period. The application is acknowledged with no waiting period. The application is acknowledged with a 30 day waiting The application is acknowledged with a 30 day waiting period, and allows the Board to issue a permit after 30 period, and allows the Board to issue a permit after 30 days (60 days for a 1 st class city). days. The application is denied. The application is denied. Print city name On behalf of the city, l acknowledge this application. Signature of city official receiving application Print county name On behalf of the county, 1 acknowledge this application. Signature of county official receiving application Title Date TOWNSHIP: On behalf of the township, I acknowledge that Title Date / / the organization is applying for exempted gambling activity within township limits. [A township has no statutory authority to approve or deny an application [Minnesota Statute 349.213, subd. 2)] Print township name Signature of township official acknowledging application Title Date CHIEF EXECUTIVE OFFICER'S SIGNATURE The information provided in this application is complete and accurate to the best of my knowledge. l acknowledge that the financial report will be completed and returned the Board withinA days of the date of our gambling activity. Chief executive officer's Complete a separate application for each gambing activity: - one day of gambling activity, - two or more consecutive days of gambling activity, - each day a raffle drawing is held Send application with: a copy of your proof of nonprofit status, and $50 application fee for each event. Make check payable to "State of Minnesota." To: Gambling Control Board 1711 West County Road B, Suite 300 South Roseville, MN 55113 Data privacy. This form will be made available in alternative format (i.e. large print, Braille) upon request. The information requested on this form (and any attachments) will be used by the Gambling Control Board (Board) to determine your qualifications to be involved in lawful gambling activities in Minnesota. You have the right to refuse to supply the Information requested; however, if you refuse to supply this information, the Board may not be able to determine your qualifications and, as a consequence, may refuse to issue you a permit. If you supply the information requested, Date Z/ILfo Financial report and recordkeeping required A financial report form and instructions will be sent with your permit. Within 30 days of the activity date, complete and return the financial report form to the Gambling Control Board. Questions? Call the Licensing Section of the Gambling Control Board at 651-639-4076. Print For Reset Form the Board will be able to process your application. Your name and and your organization's name and address will be public information when received by the Board. All the other information you provide will be private data until the Board issues your permit. When the Board issues your permit, all of the information provided to the Board will become public. If the Board does not issue a permit, all information provided remains private, with the exception of your name and your organization's name and address which will remain public. Private data are available to: Board members, Board staff whose work requires access to the information; Minnesota's Department of Public Safety; Attorney General; Commissioners of Administration, Finance, and Revenue; Legislative Auditor, national and international gambling regulatory agencies; anyone pursuant to court order; other individuals and agencies that are specifically authorized by state or federal law to have access to the information; individuals and agencies for which law or legal order authorizes a new use or sharing of information after this Notice was given; and anyone with your consent. . . ......... - 1! CM5.6"i COUNCIL STAFF REPORT Prgposed Replacement Becker Scoreboards FROM: Tom Mathisen, Public Works Director & City Engine e TO: Anne Norris, City Manager (for March 3 City Council Meeting) DATE: February 27, 2009 RE: PIR Purchase of Becker Scoreboards The existing Becker Park ball field scoreboards are the original equipment. The controllers are hardwired to the boards via underground cabling. The boards have deteriorated during the last 20 years and the controllers and related cabling have required significant maintenance and have become unreliable. New boards were originally budgeted in the 2009 Parks Department PIR for $30,000 (#5062). During recent adjustments, the budget was reduced to $20,000. A scaled down version of the new boards has been selected. The proposed Daktronics Model #2017 meets the new budget requirements. These boards display more game information than the existing boards and include wireless remote controllers. It is recommended that the Council adopt the attached resolution authorizing the purchase of two of the 2017 scoreboards at a cost of $16,000. I:pubworks/equipmenttscoreboardsbeckermemO9 WHEREAS, the City Manager's Office has reviewed and recommends approval of said appropriation; and WHEREAS, sufficient funds are available in the 2009 Parks Department PIR (#5062 - $20,000); and WHEREAS, the City Council hereby acknowledges: 1) The replacement of the original scoreboards represents a benefit to the City and is consistent with the City's long range goals, programs and policies. 2) The most suitable source of funding for such equipment is the PIR Fund. 3) No grant funds or other financing alternatives are available; and WHEREAS, the purchase will be made based on a competitive quote process. NOW, THEREFORE, BE IT RESOLVED that the Crystal City Council hereby appropriates $16,000 plus tax from the PIR Fund for the purchase of two BA -2017-21 Daktronics scoreboards with remotes from AIM Electronics. Adopted by the Crystal City Council this 3rd day of March 2008. ReNae J. Bowman, Mayor ATTEST: Janet Lewis, City Clerk I:pubworks/equipment/ScoreboardBeckerres09 Crystal City Council Meeting Packet March 3, 2009 VI. REGULAR AGENDA 1. The Council will consider using charitable gambling proceeds for contributions to NEAR and PRISM food shelves. 2. The Council will consider a resolution amending the 2008 General Fund Operating Budget. 3. The Council will consider a resolution authorizing PIR expenditure for the purchase and installation of pool drain covers for compliance with the new state and federal pool safety laws. 4. The Council will consider a resolution approving PIR expenditure for the purchase of a replacement 1994 One -Ton Dump Truck for the Utilities Department. Memorandum kcIry 01 lc�YSTAL lwl DATE: February 26, 2009 TO: Mayor and City Council FROM: Anne Norris, City Manager SUBJECT: Funding Food Shelves Serving Crystal Residents Last year, the Council adopted Resolution #2008-56, a policy regarding use of charitable gambling proceeds. The policy outlines the type of services or organizations that may receive funds from charitable gambling proceeds and is based on language in Minnesota Statutes, Section 349.12, Subd. 25. This allowed the Council to provide funds to local food shelves serving Crystal residents, NEAR and PRISM. Donations made in March to area food shelves will be matched by a grant. There are sufficient funds in the charitable gambling proceeds to contribute $1,000 each to NEAR and PRISM. Approve of funding NEAR and PRISM for $1,000 each from the lawful gambling 10% fund in the City Initiative Fund. P-� LQ•tet O O CR OCR N OOR I,-: C� 1-� q O ti a) CC) 0 0 t- 0 0 lq- M M N 0 lq- U) M C14 (D LO Cl) —m M CIA LO N r CY) M ,4- OD cu h• -I m rl t- (D (D O(D 0 0) rl_ CO ti CU (Y) - r-. 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Background: The City Charter, Section 7, requires the adoption of an annual budget. Amendment of the budget is allowed by the Charter and is almost always needed due to unpredictable events. The attached resolution provides needed amendments to the 2008 budget. General Fund — Increases in Department Budgets Administration. Spending exceeded budget by $17,241 due to fringe benefits, software maintenance contracts, supplies, newsletter printing and postage costs. Human Resources Department. Spending exceeded budget by $11,846 due to educational assistance and employee recruitment costs. Assessing Department. Spending exceeded budget by $2,875 in the area of contractual services with Hennepin County. Legal Department. Spending exceeded budget by $24,243 in the areas of general legal services and prosecutions. Elections. Spending exceeded budget by $3,047 for election judge pay. Building Inspections. Spending exceeded budget by $1,889 in the areas of bank charges for credit cards and vehicle repairs. Recreation Department. Spending exceeded budget by $2,179. This was due to higher participation level than had been anticipated in the budget. Recreation revenues were higher than budget by an amount sufficient to cover this. Community Center. Spending exceeded budget by $24,795 due to higher spending for part-time personnel. Community Center revenues were higher than budget by almost enough to cover this. Water Slide/Swimming Pool. Spending exceeded budget by $138. Higher spending for part-time personnel and energy costs were almost offset by lower costs for supplies. General Fund — Reductions in Department Budgets City Council - Contingency. The adopted 2008 budget included $36,000 in the contingency account. Only $34,000 of this is used to offset the needs of other departments because the City Council is under budget by only $34,719. General Fund — Revenues Total revenues of the General Fund were short of the budget by $188,853. This is actually a good performance considering that the State of Minnesota cut $390,266 from the amount of Local Government Aid it had promised the City of Crystal for 2008. The individual revenue categories cited in this resolution were higher than budget by at least the amount listed. Special Revenue Funds: TIF #2161 — Anthony Shopping Center This fund received more in TIF revenues that had been anticipated and that required payments on developer pay-as-you-go agreements to be $1,970 greater than had been budgeted. TIF #2154 — Suburban Motel This fund had budgeted for minimal professional services based upon past experience. Somewhat higher costs were incurred due to the cost of the TIF plan modification that put the fund $89 over budget in total. Economic Development Authority (EDA) The EDA land purchases were $490,000 higher than anticipated due to the acquisition of numerous properties. Some other expenditures were under budget. Land sales and interest revenue were also $380,000 higher because the EDA was able to sell two of the 4-plexs on 56th Avenue to the TIF #2150, Bass Lake Road District. City Initiatives Fund Spending exceeded budget by $525 due to higher spending for several of the activities accounted for in the fund. CONCLUSION I recommend that the City Council consider the attached resolution to amend the 2008 operating budgets. City of Crystal RESOLUTION NO. 2009 - WHEREAS, Section 7.05 of the City of Crystal Charter requires adoption of annual budgets for the City, and WHEREAS, unpredictable operating conditions during the year make it necessary to amend the budget. NOW, THEREFORE, BE IT RESOLVED that appropriations in the 2008 General Fund Budget are increased or (decreased) as follows: City Council — Contingency Reserve $(34,000) Administration 17,500 Human Resources 12,000 Assessing 3,000 Legal 24,300 Elections 3,100 Building Inspections 2,000 Recreation 2,200 Community Center 25,000 Waterslide / Pool 200 TOTAL APPROPRIATIONS $55,300 BE IT FURTHER RESOLVED that revenues in the 2008 General Fund Budget are increased as follows: Charges for services — Recreation $ 3,500 Charges for services — Community Ctr. 20,500 Administrative Fines 31,300 TOTAL APPROPRIATIONS $55,300 I a*IS] R1 I BE IT FURTHER RESOLVED that the 2008 Budgets are increased as follows: Adopted by the Crystal City Council this 3rd day of March, 2009. ReNae J. Bowman, Mayor ATTEST: Janet Lewis, City Clerk REVENUES APPROPRIATIONS -SPECIAL REVENUE FUNDS #2151 –Anthony Shopping Ctr. $2,000 $2,000 -TIF TIF #2154 – Suburban Motel 100 100 Development Authorit 380,000 474,000 -Economic -City Initiatives 0 — 600 Special Revenue Funds $382,100 $476,700 Adopted by the Crystal City Council this 3rd day of March, 2009. ReNae J. Bowman, Mayor ATTEST: Janet Lewis, City Clerk ............. Memorandum J .C"ibf [CRY STAL .. U DATE: February 25, 2009 TO: Anne Norris, City Manager Mayor and City Council Members FROM: Gene Hackett, Recreation Director SUBJECT: Request for PIR Expenditure for Pool Drain Covers Two tragic accidents involving children resulted in the passing of state and federal legislation requiring public pool operators to equip their pools with anti -entrapment devices: In December 2007, President Bush signed a new law which requires all public pools and spas to comply with the Virginia Graeme Baker Pool and Spa Safety Act. The law states that "each public pool and spa in the United States must be equipped with anti - entrapment devices or systems that comply with the ASME/ANSI 112.19.8 performance standard or any successor standard; and each public pool and spa in the United States with a single main drain other than an unblockable drain shall be equipped, at a minimum, with 1 or more devices or systems designed to prevent entrapment by pool or spa drains". On May 22, 2008, Minnesota Governor Tim Pawlenty, signed the Abigail Taylor swimming pool safety bill into law that requires all commercial and public pools to have compliant drain covers in place for suction entrapment prevention. The covers must be in compliance with the ASME/ANSI standards. Operators will be required to inspect the drains daily and keep a log of those inspections. If a cover or grate is missing, broken, or loose, the pool must be closed until the cover or grate is replaced or fixed. As a result of these two laws, the Crystal Cove Aquatic Center is required to have the pool drains fitted with certified covers prior to opening for the 2009 season. If the pool is not compliant with these laws by the opening inspection, Hennepin County will refuse to grant an operating permit and could enforce substantial financial penalties for non- compliance. Staff contacted Signature Aquatics to review the pool plans and make a visual assessment of the facility's drains and suction outlets. The facility has 5 drains/outlets of various sizes (2 in the zero depth pool and 3 in the main pool) that will need the covers. Since some of the outlets are not a standard size, those covers must be custom made. One outlet will need a bracket system to hold the cover in place. If the covers are ordered in March, they will be received and installed in time for the opening inspection. The estimated cost of purchasing and installing the covers is $35,000. The cost of this project was included in the recently revised PIR plan. Recommendation: In order to comply with the mandated state and federal pool anti - entrapment laws, the City Council should consider adopting the attached resolution authorizing the purchase and installation of the required pool drain/outlet covers. RESOLUTION NO. 2009 - WHEREAS, the City Manager's Office has received and recommends approval of said appropriations, and WHEREAS the City Council hereby acknowledges 1 That the pool drain covers are required by federal and state law and represent a benefit to the City and is consistent with the City's long range goals, programs and policies. 2. The most suitable source of funding is the PIR fund. 3. No grants or other financing alternatives are available. 4. There are sufficient accumulated earnings to cover the appropriation without the use of fund principle. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CRYSTAL hereby appropriates moneys in the amount of: $35,000 from the PIR fund for the purchase and installation of the pool drain covers. Adopted by the Crystal City Council this 3rd day of March, 2009. ReNae J. Bowman, Mayor ATTEST: Janet Lewis, City Clerk GCOUNCIL STAFF REPORT 1, CITY Proposed ; Replacement of Utility Department Truck CRYSTAL # 428 — I Ton Dump FROM: Randy Kloepper, Utilities Superintendent DEPARTMENT HEAD REVIEW: Tom Mathisen, Public Works Directot, IV jw TO: Anne Norris, City Manager (for March City Council Meeting) DATE: May 30, 2008 SUBJECT: Purchase of one 2009 GMC Sierra 350OHD Cab and Chassis along with a one ton dump body package. The current Utility Department truck #428 a 1994 Chevrolet one -ton dump. This truck is used in many facets of the Utility Department operations. With primary uses being the transport of materials to job sites, and towing the vacuum trailer. I am requesting we replace this truck with a 2009 GMC Sierra 350OHD purchased from Nelson Auto Center using State Of Minnesota Contract # T-636(5) at a cost of $22,280.53 plus $1448.23 sales tax for a total cost of $23728.76 plus license and registration. The dump box, hoist, hydraulic power supply and refurbishing and remounting of our existing crane will be purchased for Crysteel truck Equipment using State of Minnesota Contract # T- 699(5) at a cost of $10,142.50 plus sales tax of $659.27 for a total cost of $10,801.77. Total cost for the replacement of Truck # 428 is $34,530.53 plus License and registration. This unit was included in the Utility Department's 2009 Storm Drainage Fund, business unit # 6812. Attached are the contract prices for the truck and dump box including installation. Thank you for your consideration. Randy Kloepper HABudget\428 replacement.doc RESOLUTION NO. 2009 - UVIT V428 OV , DUMP BOX WHEREAS, the City Manager's office has reviewed and recommends approval of said appropriation; and WHEREAS, the appropriation is included in the 2009 Utilities Enterprise Funds CIP Budget; and WHEREAS, the City Council hereby acknowledges: 1) A replacement one -ton truck and dump box represents a benefit to the City and is consistent with the City's long range goals, programs and policies. 2) The most suitable source of funding for such a purchase is the Utilities CIP Fund. 3) Unit #428 is a 1994 Chevrolet one -ton that has outlived it's useful life in the Utility Department; and WHEREAS, the City will purchase through the competitive State of Minnesota bidding process. NOW, THEREFORE, BE IT RESOLVED that the Crystal City Council hereby appropriates $23,729 tax included for the purchase of a 2009 GMC Sierra 3500HD one - ton truck from Nelson Auto Center; and FURTHER, appropriates $10,802 (for a total of $34,531) tax included for the purchase of the dump box from Crysteel Truck Equipment. Adopted by the Crystal City Council this 3rd day of March 2009. ReNae J. Bowman, Mayor ATTEST: Janet Lewis, City Clerk I:pubworks/equipment/onetonutilities09res CRYSTAL CITY COUNCIL WORK SESSION AGENDA Tuesday, March 3, 2009 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 Work Session of the Crystal City Council was held at p.m. on Tuesday, March 3, 2009 in Conference Room A located at 4141 Douglas Drive, Crystal, Minnesota. 1. Attendance am= The purpose of the work session is to discuss the following agenda items: ® Alley speed bump policy ® 639 Wetland Work Plan * Who will preside over the Regular Council Meeting on 3/17/09? Ill. Adjournment The Work Session adjourned at _ p.m. GACity ClerkXCouncilkWork sessionsXwsagenda3-03-09.doc Memorandum 'crryfid ICRYSTAL =sow, DATE: February 2, 2009 TO: Mayor and City Council FROM: Anne Norris, City Manager ffhlk� SUBJECT: Speed Bumps in Alleys Last fall, a resident appeared at Open Forum requesting consideration of a speed bump being installed in the alley between 38th and 39th Avenues, between Vera Cruz and Welcome. The resident was told that staff would research the request and bring it back to the Council for discussion at a later date. The Police Chief, Public Works Director and I have met and discussed speed bumps in alleys and what possible policies might be. We researched other cities' policies and practices. Some cities have a flat policy of not allowing speed bumps in alleys or streets. The cities not permitting speed bumps cite concerns regarding: liability; emergency services access/patrol; and management. Those cities that permit speed bumps in alleys require all or some combination of the following: a petition from a majority (ranges from 67% - 80%) of the residents on that alley to support the installation of a speed bump; residents in the block have to pay for the cost of the speed bump prior to the city's installation; one resident on the block has to take responsibility for removing and installing the speed bump before and after snowplowing season and storing the speed bump over the winter. Based on the issues identified by the cities that don't permit speed bumps, at this time staff is not recommending adoption of a policy allowing speed bumps in alleys. The Council should discuss what, if any, other information it needs on this matter. 11CMemorandum M — of e CRYSTAL DATE: February 26, 2009 TO: Mayor and City Council FROM: Anne Norris, City Manager Tom Mathisen, Public Works Director SUBJECT: Wetland 639 Restoration Project Update Approximately six years ago the City participated in a joint study with Brooklyn Park, Brooklyn Center, New Hope, and the Shingle Creek Watershed Management Organization (SCWMO), to determine the sources of phosphorous in the three Twin Lakes. One of the most significant results of this study was the discovery that the wetland on the east side of the Crystal airport is saturated with phosphorous and is negatively impacting the water quality in the Twin Lake chain. This wetland is officially known as Wetland 639 and commonly known as the MAC Park wetland. Last year the SCWMO and the Minnesota PCA completed the Total Maximum Daily Load (TMDL) Allocation Study for phosphorous both in and entering the Twin Lakes. The TMDL action plan has been approved by the State and requires the phosphorous concentration in the lakes to be reduced to 40 milligrams per liter (mg/1). The study also indicated that the first step, most significant "low hanging" fruit that could be taken to achieve that goal would be to mitigate the phosphorous being discharged into the lakes from Wetland 639. In 2008 the Shingle Creek Water Management Commission (SCWMC) received a $60,000 grant from the MPCA and EPA to complete a feasibility analysis to determine the best and most cost effective way(s) to reduce phosphorous coming from this wetland and entering downstream lakes. The total cost is $120,060, and the analysis will include: additional monitoring of the wetland and area lakes; identification of options for restoration, including what are most cost-effective; identification of what, if any, permits would be necessary; and completion of preliminary plans and cost estimates. The feasibility study will be coordinated by a Technical Advisory Committee (TAC) of representatives from the 4 affected cities, MAC and the MPCA. The MPCA/EPA grant for this analysis requires a local match. According to the SCWMO's cost share policy, the Commission has agreed to contribute 25% of the costs, or in this case, $30,000. The remaining $30,000 is the responsibility of the benefiting cities which are defined as those cities that both drain to and receive water from the wetland. The cities have agreed to the following cost allocation: Brooklyn Center 33.75% ($10,125) Brooklyn Park 16.25% ( 4,875) Crystal 33.75% ($10,125) New Hope 16.25% ( 4,875) Both Crystal and Brooklyn Center are paying a higher percentage of the cost because this is where most of Wetland 639 is located, and these are the cities that will receive the most benefit from any reduction in phosphorous leaving 639. The SCWIVIC intends to begin work and collecting data on the feasibility as soon as possible. The feasibility analysis and resulting recommendations should be available by early winter of 2009. The recommendations will include specifics on the best option to reduce the amount of phosphorous leaving 639, along with a preliminary design and cost estimate of a project to achieve that goal. At present, one of the most promising options is to divert a percentage of the existing upstream to downstream flow through the wetland, to a new by-pass channel around the wetland. The initial local share (from the four cities) estimate for this kind of a project is $490,000. The SCWIVIO engineer Wenck and Associates will make a brief presentation about the project at the Tuesday work session. I:pubworks/projects/2008/08-17 639 Wetland/Council March 09 mem