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2017.12.05 Council Meeting Packet4141 Douglas Drive North • Crystal, Minnesota 55422-1696 CITY of Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov CRYSTAL Posted: Dec. 1, 2017 City Council Meeting Schedule Dec. 5, 2017 Time Type of meeting Location First City Council work session to discuss: 6:15 p.m. Conference Room A Amending Council rules - public attendance Economic Development Authority (EDA) meeting to consider: 6:45 p.m. Tentative acceptance of a proposal from Tollberg Council Chambers Homes for an EDA lot at 4724 Lakeland Ave. N. 2018 Housing and Redevelopment Authority levy 7 p.m. City Council meeting Council Chambers Second City Council work session to discuss: Following the Shared recreational facilities City Council Constituent issues update Conference Room A meeting New business* Announcements* * Denotes no supporting information included in the packet. Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763) 531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529. 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 CITY of Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov CRYSTAIL, Posted: Dec. 1, 2017 City Council First Work Session Agenda Dec. 5, 2017 6:15 p.m. Conference Room A Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the first work session of the Crystal City Council was held at p.m. on Dec. 5, 2017 in Conference Room A, 4141 Douglas Dr. N., Crystal, Minnesota. I. Attendance Council Members Parsons Adams Budziszewski Dahl Deshler Kolb LaRoche Staff Norris Therres Gilchrist Ray Revering Serres II. Agenda The purpose of the work session is to discuss the following agenda item: 1. Amending Council rules —public attendance III. Adjournment The work session adjourned at p.m. Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763) 531- 1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529. Memorandum CITY iNF CRYSTALL DATE: November 30, 2017 Mayor and City Council FROM: Anne Norris, City Manager 6ulb� SUBJECT: Council Rules — Public Attendance Earlier this fall City Attorney Gilchrist provided training to the City Council and staff on the Open Meeting Law and First Amendment. At that training, City Attorney Gilchrist noted a recent court ruling regarding public attendance at Council meetings. Based on this ruling, in his November 7 memo (attached) the City Attorney is recommending the Council consider amending its Rules to address public attendance at Council meetings and work sessions. Attached are the current version of the Council Rules and proposed changes drafted by the City Attorney. The City Attorney will be at the December 5 work session to review these amendments and get the Council's input. Attach: Kennedy Graven CHARTERED Troy J. Gilchrist 470 US Bank Plaza 200 South Sixth Street Minneapolis MN 55402 (612) 337-9214 telephone (612) 33 7-93 10 fax tgilchrist@kennedy-graven.com h!W://www.kennedy-,Qraven.com Also: St. Cloud Office 501 W. Germain Street, Suite 304 St. Cloud, MN 56301 (320) 240-8200 telephone MEMORANDUM To: Crystal City Council From: Troy Gilchrist, City Attorney Date: November 8, 2017 Re: Addressing Disruptions at City Council Meetings after State v. Hensel I am writing to provide the City Council information on managing disruptions at City Council meetings in light of the Minnesota Supreme Court's decision in State v. Hensel, 901 N. W.2d 166 (Minn. 2017). This is the case that was released immediately before we talked about the First Amendment and that I mentioned during the session. That discussion resulted in some comments about the City looking at its options to address the issue now rather than waiting for a disruptive situation to occur. Since the decision there have also been discussions among city attorneys over the best methods for cities to respond to the need to control their meetings. The purpose of this memo is to update the City Council on those options in case it decides to pursue the matter. Below I will provide a brief summary of the case as a reminder, set out two options for the City Council to consider, and offer a recommendation for the City Council's consideration. Summary of Hensel Decision The case arose out of disruption of two Little Falls City Council meetings by Ms. Hensel. The facts as presented by the court do not, to say the least, fully capture the level of disruption caused by Ms. Hensel's actions, but they are relatively succinct and so rather than attempt to rewrite them I will just quote them here: The facts of this case, which arose out of two Little Falls City Council meetings, are undisputed. At the first of the two meetings, appellant Robin Lyne Hensel sat in the public gallery, which was about 15 to 20 feet from a raised dais located at the front of the 510554v2 TJG CR205-30 room and reserved for city -council members. Tables and chairs were positioned in the area between the gallery and the dais. During the meeting, Hensel, who was sitting in the front row of the gallery, displayed signs that depicted dead and deformed children. These signs, which were approximately 4 -feet long and 4 -feet high, along with a sign on her head, obstructed the view of those seated behind her, causing the City Council president to grant permission to affected members of the gallery to come forward and sit in the chairs available at the front of the room. Hensel's actions eventually led the City Council to adjourn and reschedule the meeting. Four days later, the City Council reconvened in the same room, but this time there were no tables or chairs in the area between the gallery and the dais. Rather than sitting in the gallery, as she had at the previous meeting, Hensel took one of the folding chairs from the gallery and placed it in the space previously occupied by the tables and chairs. Hensel refused multiple requests to return to the gallery and challenged the City Council by demanding to see a policy that prohibited her from sitting there. Eventually, the Little Falls City Attorney warned Hensel that a police officer would remove her from the meeting room and issue her a ticket for disorderly conduct if she did not return to the gallery. When Hensel again refused a request to move, an officer escorted her from the room. Id. at 169. Ms. Hensel was charged with disorderly conduct under Minnesota Statutes, section 609.72, subdivision 1(2) for disrupting the meeting. She responded by challenging the statute as violating her First Amendment rights, alleging it is unconstitutionally overbroad, vague, and unconstitutional as applied to her case. The disorderly conduct statute she was charged under provides as follows: 609.72 DISORDERLY CONDUCT. Subdivision 1. Crime. Whoever does any of the following in a public or private place, including on a school bus, knowing, or having reasonable grounds to know that it will, or will tend to, alarm, anger or disturb others or provoke an assault or breach of the peace, is guilty of disorderly conduct, which is a misdemeanor: (1) engages in brawling or fighting; or (2) disturbs an assembly or meeting, not unlawful in its character; or (3) engages in offensive, obscene, abusive, boisterous, or noisy conduct or in offensive, obscene, or abusive language tending reasonably to arouse alarm, anger, or resentment in others. (emphasis added). 2 5105542 TJG CR205-30 The court analyzed the statute and was troubled by the scope of lawful activities that could potentially be penalized under it, as well as the resulting chilling effect on protected speech. As a result, the court found the "statute facially violates the First Amendment's overbreadth doctrine." Id. at 173. The court rejected the arguments forwarded by the state to demonstrate the statute is not overly broad. The state asserted the statute does not ban all speech, but the court pointed out that fact does not mean it is not overbroad. Nor, the court pointed out, is it compelled to find that the statute is constitutional just because it could ban more speech than it does. The fact the statute contains an intent requirement ("knowing, or having reasonable grounds to know") also does not save it as it could prohibit mere negligent disturbances. The potential to reach even negligent disturbances increases the chances the statute has a chilling effect on protected expressions. Finally, the court found the statute is not a valid time, place or manner restriction as it applies to all conduct, occurring at any time, that disturbs any lawful assembly, whether occurring on public or private property. Even under intermediate scrutiny, which applies when reviewing time, place, and manner restrictions, the regulation, though content neutral, is not narrowly tailored to serve a significant government interest. "The statute regulates a broad swath of protected speech and expressive conduct, far more than is necessary to maintain order at meetings and assemblies." Id. at 175. Rejecting all of the state's arguments to uphold the statute, the court reaffirmed it is unconstitutionally overbroad. Having determined the statute is unconstitutional, the court examined whether it can be remedied through a narrowing construction or if it must be invalidated. After discussing its options, the court ultimately concluded that attempting to narrow the statute would require the court to rewrite it, something it cannot do, and so it invalidated the statute. The court was not clear on the scope of its ruling, but since the challenge was limited to the disturbing an assembly element of the statute, it is reasonable to view the ruling as being limited to that provision. Options after Hensel As a result of the court invalidating language obviously intended to protect gatherings such as city council meetings from disruptions, cities have been left wondering what they can do to help ensure they can maintain order during their meetings so they can conduct the city's business. The League of Minnesota Cities will likely attempt to address the issue with the legislature during the upcoming session, but in the meantime cities are left wondering what they can do to maintain order at their meetings. In discussing this matter with other city attorneys and the attorney that defended Little Falls in the case (who has been working with the League on this issue), we have identified two options for the City Council to consider: (1) adopt a policy setting out rules of conduct for meetings; or (2) adopt an ordinance that prohibits disrupting meetings. Each option is discussed below. 0 ) Adopt a_Policy Establishing Rules of Conduct This approach involves the City Council adopting by resolution a set of rules that applies to those attending City Council meetings. Because the City Council already has a set of rules for its 5105542 TJG CR205-30 meetings, it could include these rules as a separate section that applies to those who attend meetings. Nothing in Hensel suggests a city cannot maintain control of its meetings. The court simply struck down an overbroad statute used to penalize a person that disrupted a meeting. The City Council can establish rules through a policy that, if violated, provides for the removal of the person from the chambers. If the person refused to leave, the City can arrest the person for trespass if necessary. Under Minnesota Statutes, section 609.605, subdivision I (b)(3), a "person is guilty of a misdemeanor if the person intentionally ... trespasses on the premises of another and, without claim of right, refuses to depart from the premises on demand of the lawful possessor", The 8t' Circuit upheld an arrest for trespass when an activist refused to leave a public school board meeting. In Green v. Nocciero, 676 F.3d 748 (2012), the court found the school board's meeting constituted a limited public forum. As such, the "School Board could reasonably restrict public access to this forum `based on the subject matter of the speech, on the identity or status of the speaker, or on the practical need to restrict access for reasons of manageability or the lack of resources to meet total demand.' This necessarily included the authority to remove an unruly or disruptive member of the audience `to prevent his badgering, constant interruptions, and disregard for the rules of decorum."' Id. at 753-754 (citations omitted). The court pointed out that viewpoint discrimination is not allowed, but while the person claimed he was being retaliated against for past comments against the school board, those claims were not supported. The removal by law enforcement of persons disrupting a public meeting does not violate their First Amendment rights. Similarly, the 8t' Circuit in Galarnyk v. Fraser, 687 F.3d 1070 (2012) also held there was probable cause under Minnesota law for an arrest for trespass when a person refused to leave the restricted 35W bridge collapse site. Finally, in State v. Occhino, 572 N.W.2d 316 (Minn. App. 1997), the Minnesota Court of Appeals upheld a trespass conviction of a person that entered the public area of a police station, but then refused to leave when ordered to do so by the officer in charge after becoming unruly and disruptive. The person's "repeated refusals to leave and his intentional act of remaining at the police desk area, while having no lawful reason to be at that area, then constituted trespass." Id. at 319. The City of Little Falls has pursued this policy approach and a copy of the rules its council has adopted is attached. Adopting a policy allows the City Council to adopt rules for its meetings that can go into effect promptly without having to wait for two readings and the additional 30 days required if they were adopted by ordinance. Furthermore, adjustments can be made to the policy as needed by resolution without having to work through the ordinance amendment process. ('2 } Adopt an Ordinance to Prohibit Disruptions The thought behind this approach is to simply prohibit, as part of the city's code, the disruption of council meetings. In other words, this ordinance would effectively take the place of the 4 510554v2 TJG CR205-30 statute the court struck down by making it illegal to disrupt the City Council's meeting. A person who then disrupts a meeting can be removed, issued a citation, and, if necessary, arrested under the ordinance. The ordinance would, of course, need to be drafted so has to avoid the constitutional problems identified with the statute, but adopting an ordinance can serve to fill the gap created by the invalidated statute. Recommendation If the City Council is interested in taking action on this issue, I recommend it pursue option (1) by amending its Council Rules to include a set of rules applicable to those who attend its meetings. The rules could be similar to those adopted by the City of Little Falls. Presumably, the legislature will address the constitutional shortcomings of the disorderly conduct statute during the next session, and so focusing on a set of rules tailored to the City Council's meetings is the best method for addressing that particular limited public forum. The policy will also be more instructive to those attending meetings and can provide a clear process for what may happen if someone violates it. If the City Council directs, I would be happy to work from the rules adopted by Little Falls to create a set of rules for its review. Feel free to let me know if there are any questions. 5 5105542 TJG CR205-30 Crystal City Council Rules Revised 1-2017 Crystal City Council Rules of Procedure SECTION 1 AUTHORITY The Charter and City Code of the City of Crystal, MN direct the Council to adopt a set of rules. SECTION 2 MEETINGS 2.1 Meetinq Schedule The schedule of regular council meetings is adopted at the end of the prior year in accordance with City Code Section 200 and the City Charter. 2.1.1 Amending Meetinq Schedule The schedule of regular meetings may be amended by resolution. 2.1.2 Special Meetings Any meeting of the council that is not on the regular schedule is a special meeting of the council, and shall be called by the mayor or three councilmembers upon reasonable notice to councilmembers and such other notice as required by law, as prescribed by the City Charter (section 3.01). 2.2 Meeting Agendas The City Manager is authorized to create the agendas for regular and special council meetings. The City Manager will distribute preliminary agendas to the City Council no later than the Thursday preceding the meeting. Agendas and informational material for regular meetings shall be distributed to the Council and posted on the City's website no later than the Friday preceding the meeting. 2.2.1 Aqenda Approval Approval of regular and special meeting agendas shall be made during the Approval of Agenda section of the meeting. An item may be removed from the agenda by a majority vote of the members present at the meeting. Urgent or emergency items may be added to the agenda during a meeting by suspending the rules (see 4.3 below). 2.2.2 Regular Agenda Order The regular order of the agenda is as follows: 1) Call To Order 2) Roll Call 3) Pledge of Allegiance 4) Approval of Agenda 5) Proclamations 6) Special Appearances 7) Consent Agenda a) Council meeting minutes 8) Open Forum 9) Public Hearings 10) Regular Agenda a) Reading and approval of disbursements over $25,000 11) Information and Announcements a) Upcoming community events b) Notification of upcoming work sessions and council meetings c) Reminder that work sessions and meetings are recorded and available online 12) Adjournment 2.2.3 Changes to Meeting Order After the agenda has been adopted, the presiding officer may, at his/her discretion, modify the order of the agenda items to secure proper flow of the meeting. For example, a special appearance may be moved to later in the meeting to accommodate a late presenter, or open forum may be moved earlier/later to accommodate participants or facilitation of other business. 2.2.4 Proclamations A Proclamation may be used to call attention to certain events or causes, or to recognize outstanding residents, employees, businesses, or organizations in Crystal. All proclamations shall relate directly to the City of Crystal. Proclamations are issued and signed by the Mayor and do not require a vote from the Council. The City Manager and Mayor shall work together to prepare and schedule proclamations. 2.2.5 Special Appearances The Council may, from time to time, invite guest speakers to address the Council. These may be other elected officials or representatives of community programs. The scheduling of guest speakers is at the discretion of the City Manager and Mayor. Guest speakers shall be limited in time to 10 minutes. 2.2.6 Consent Agenda The consent agenda is for routine and non -controversial items. The items on the consent agenda will be considered in one motion. No items may be placed on the consent agenda that pertain to the direct expenditure of City funds. Any member may request that an item be removed from the consent agenda; this request is not subject to debate and does not require a vote. Items removed from the consent agenda are added to the regular agenda before the first regular agenda item. 2.2.7 Open Forum The City Council appreciates hearing from citizens about items of concern and desires to set aside time during each meeting for Open Forum. Under normal order, each person will be allowed three minutes to speak, and no items may be addressed for more than ten minutes. The Mayor may, at his/her discretion as presiding officer, extend the total time allowed for a topic. No Council action may be taken on any items brought before the Council on Open Forum. 2.2.8 Resolutions A Resolution may be used to express City Council policy, direct administrative or legal action, or to make a public statement from the Council (symbolic resolution). Resolutions are passed by majority vote. All symbolic resolutions must directly relate to the business of the City of Crystal. The Council will not issue symbolic resolutions on pending legislation, ballot measures, or any items being discussed by other legislative bodies. 2.2.9 Public Input It is the policy of the Crystal City Council to seek feedback from the community prior to implementing a change in policy. Whenever practical, the Council will schedule an opportunity for public comment on a new policy at the meeting prior to the meeting where a vote will take place. SECTION 3 WORK SESSIONS 3.1 Work Session Schedules The schedule of regular work sessions is adopted at the beginning of the year in accordance with City Code Section 200 and the city Charter. The schedule for work sessions is typically as follows: 3.1.1 Standing Work Sessions There will be a standing work session immediately following each regularly scheduled council meeting. If there are insufficient agenda items to require a standing work session, it may be cancelled at the discretion of the City Manager. 3.1.2 Additional Work Sessions Additional work sessions are typically scheduled prior to a regularly scheduled council meeting, and/or on the second Thursday of the month. 3.1.3 Budget Work Sessions Budget Work Sessions are typically_ scheduled to coincide with the budget process and are dedicated to discussion of formulation of the city budget. 3.1.4 Amending Meeting Schedule The schedule of work sessions may be amended by resolution at a council meeting. 3.1.5 Special Work Sessions Any work session of the council that is not on the regular schedule is a special meeting of the council, and shall be called by the mayor or three councilmembers upon reasonable notice to councilmembers and such other notice as required by law, as prescribed by the City Charter (Section 3.01). 3.2 Work Session Agendas The City Manager is authorized to create the agenda for work sessions. 3.2.1 Agenda Order The regular agenda order is as follows: 1) Regular Agenda Items 2) Constituent Issues Update* 3) New Business* 4) Announcements* *Only at standing work sessions. 3.2.2 Constituent Issues Update At its standing work sessions the Council will receive from the City Manager an update on open constituent issues. This update will be provided in a format mutually agreed upon by the Council and the City Manager. 3.2.3 New Business Any Council member may bring an item up for discussion during the New Business portion of the standing work session. Discussion on each item is limited to three minutes. Upon the agreement of a minimum of two council members the item may be added to the agenda for the next Regular Work Session for further discussion. Upon the agreement of a minimum of three council members the item may be added to the next council meeting agenda. 3.2.4 Announcements This section of the agenda is for Council members and staff to make announcements about upcoming events or meetings, or to preview the agenda for upcoming meetings and work sessions. 3.3 Recording All work sessions shall be audio recorded and the recordings shall be retained on the City's website for a period of two years. SECTION 4 GENERAL 4.1 Adoption of Rules Rules shall be adopted by a resolution requiring an affirmative vote of 5 Council members at the second Regular Council Meeting of each year. If rules are not adopted at this meeting they will be presented at every subsequent meeting until they are adopted. Current rules remain in effect until new rules are adopted. 4.2 Amendment of Rules Once adopted for a calendar year, rules shall not be amended except by resolution requiring an affirmative vote of 6 members. 4.3 Suspension of Rules A rule may be temporarily suspended by an affirmative vote of two-thirds of the members present. The specific reason for suspending the rules must be stated in the motion to suspend, and no business may be transacted except the stated business. 4.4 Motions reduced to writing Pursuant to City Code 200.11 - A motion must be reduced to writing at the request of any member present. Ordinances and resolutions must be presented in writing and read in full before a vote is taken thereon unless the reading is dispensed with by unanimous consent. 4.5 Tie Votes A tie vote results in a lost motion. 4.6 Unanimous Consent Unanimous consent for the dispensing of reading of ordinances and resolutions is assumed unless a member requests a formal reading prior to the vote on the item in question. 4.7 Presiding Officer The mayor is the presiding officer for all meetings and work sessions. In the absence of the mayor, the order or precedence is the Mayor Pro -Tem, the EDA President, the EDA Vice President, the EDA Secretary, and the EDA Treasurer. 4.8 Decorum It is the desire of the Council to conduct Council meetings and work sessions in as informal way as possible to facilitate open and natural discussion of agenda items. Council members are to refrain from personal attacks or off -topic conversation. The presiding officer at Council meetings is responsible for maintaining decorum. 4.9 Vote Count Reference This section indicates the number of votes required to achieve a threshold at various voting strengths. This chart is for illustrative purposes only. The number of votes required on matters identified by law requiring more than a majority vote of a quorum of the City Council will be stated on the agenda. Number of Members Present Threshold r 4 Three Fourths 6 5 4 3 Two Thirds 5 4 4 3 Majority 4 4 3 3 This chart is for illustrative purposes only. The number of votes required on matters identified by law requiring more than a majority vote of a quorum of the City Council will be stated on the agenda. DRAFT 11-29-17 Proposed Amendment to the Crystal City Council Rules The following proposed new section of rules relates to public attendance at meetings and is being offered for consideration in response to the Minnesota Supreme Court's invalidation of the disorderly conduct statute prohibiting the disruption of meetings. SECTION 5 PUBLIC ATTENDANCE AT MEETINGS 5.1 Encouraged; Subject to Rules The public is encouraged to attend Council meetings and to provide their input during the scheduled citizen input time and during public hearings. However, certain rules need to be established and must be observed regarding public attendance at, and participation in, meetings to ensure others have an opportunity to speak and to allow the City Council to conduct its business without disruption. Those who attend Council meetings shall comply with the rules set out in this Section and failure to comply with these rules may result in the person being ejected from the meeting. These rules apply to all public meetings held by the City Council and, to the extent practicable, meetings held by the City's commissions and boards. 5.2 Remain Seated Unless addressing the City Council, or entering or leaving the meeting room, all persons in the audience shall remain seated in the seats provided in their current location. No person shall stand or sit in the aisles or along the walls, unless permitted by the Presiding Officer. No person shall block any doorways or interfere with those attempting to speak at open forum or during a public hearing in accordance. No person, other than Councilmembers and staff, shall enter the area behind the dais in the Council Chambers during Council meetings. 5.3 Demonstrations All demonstrations, including cheering, yelling, whistling, handclapping and foot stomping which disrupts, disturbs, or otherwise impedes the orderly conduct of the Council meeting are prohibited. 5.4 Obstruct Views Members of the audience and speakers shall not wear or display signs, placards, banners, hats, costumes, or similar items at any time in the meeting room that obstruct the view of other audience members. In no event shall signs, placards, banners, props, or similar items be larger than 8'/z by 11 inches, be illuminated, or be attached to any pole, stick, or other device. 5.5 Open Forum As noted in Section 2.2.7 of these rules, the City Council provides an opportunity for public input during the open forum portion of its agenda during regular Council meetings. Those who wish to speak during the open forum shall fill out a yellow slip provided in the meeting room and provide it to the City Clerk. No person shall address the Council until he or she has first been recognized by the Presiding Officer. Unless directed otherwise by the Presiding Officer, comments shall be made at the designated podium and the speaker shall state his or her name and address before commenting. In the interest of facilitating the business of the Council, all persons addressing the Council shall be limited to three minutes, and no matter may be addressed for more than ten minutes, unless such time is extended by the Presiding Officer for good cause. 5.6 Interruptions Members of the audience shall respect the rights of others. No person in the audience at the Council meeting shall engage in conduct that disrupts the orderly conduct of any Council meeting, including, but not limited to, the utterance of loud, threatening or abusive 511708vl TJG CR205-30 DRAFT 11-29-17 language, whistling, clapping, stamping of feet, repeatedly waiving of arms or other disruptive acts. 5.7 Recordings Photographs, audiotapes, and videotapes may be taken from any seat available to the public within the meeting room or from the rear of the meeting room. Except when presentations are being made, photographs, audiotapes and videotapes may not be taken from the side or middle aisles or from the front of the Council Chambers as such practices disrupt and disturb the audience, public speakers, and Councilmembers and interfere with the orderly conduct of the meeting. Photographs, audiotapes, and videotapes shall not be taken in any manner which disturbs or disrupts the audience, speakers, or Councilmembers or otherwise disrupts the Council meeting. 5.8 Animals Animals are prohibited in the Council Chambers, except for trained K-9 police dogs and trained service animals as defined under State and Federal law. 5.9 Enforcement of Rules The Presiding Officer of the Council, with the assistance of law enforcement, shall be responsible for maintaining the order of the meeting. The rules established in this Section 5 shall be enforced as follows: 1) The Presiding Officer has the authority to issue a verbal warning to a person violating the rules; 2) If the person issued a warning by the Presiding Officer continues to violate the rules and disrupt the meeting, the Presiding Officer will direct the person to be ejected or excluded from the meeting room; and ) The ejection shall be for the remainder of the session at which the violation of the rules occurred. 511708v1 TJG CR205-30 AGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL • REGULAR MEETING • TUESDAY, DECEMBER 5, 2017 6:45 P.M. CRYSTAL CITY HALL COUNCIL CHAMBERS 1. Call to order * 2. Roll call * 3. Approval of minutes from the November 21, 2017 special meeting 4. Consider tentative acceptance of a proposal from Tollberg Homes to purchase the EDA lot at 4724 Lakeland Avenue North 5. Consider a resolution adopting a 2018 budget and property tax levy and requesting their approval by the City Council 6. Other business * 7. Adjournment * *Items for which no materials are included in the packet Minutes of the Crystal Economic Development Authority Special Meeting November 21, 2017 President Kolb called the special meeting of the Crystal Economic Development Authority to order at 7:35 p.m. Upon call of the roll, the following members were present: Jim Adams, John Budziszewski, Julie Deshler, Jeff Kolb, Nancy LaRoche and Olga Parsons. The following staff members were present: Anne Norris, Executive Director, John Sutter, Deputy Executive Director, and Troy Gilchrist, City Attorney. Motion by Commissioner Parsons (Deshler) to approve the minutes of the October 3, 2017 regular meeting. Motion carried. The EDA considered authorizing a contract with Center for Energy and the Environment for administration of home improvement programs in 2018. Mr. Sutter presented the staff report and took questions from the Board. Following EDA discussion, motion by Commissioner Adams (Deshler) to authorize a contract with Center for Energy and the Environment for administration of home improvement programs in 2018, but without adding a deferred loan requirement to the Home Improvement Incentive Rebate program. Motion carried. Under New Business, Mr. Sutter answered questions from the board about the status of 5717 West Broadway (former Thriftway) and 4800 56th Avenue North (former gas station). Motion by Commissioner Parsons (Adams) to adjourn. The meeting adjourned at 8:07 p.m. ATTEST: Olga Parsons, Secretary Page 1 of 1 Jeff Kolb, President Motion Carried. EDA STAFF REPORT CITY ut 4724 Lakeland Avenue North CRYSTAL Lot purchase proposal from Tollberg Homes FROM: Dan Olson, City Planner DATE: November 30, 2017 TO: Anne Norris, Executive Director (for December 5 EDA meeting) SUBJECT: Consider tentative acceptance of proposal by Tollberg Homes for the lot at 4724 Lakeland Avenue North Tollberg Homes has submitted a proposal to purchase the lot at 4724 Lakeland Avenue North. The lot price is $55,000. Tollberg is a state -licensed residential building contractor with no enforcement actions. Attached are an aerial photo, builder's proposal form, and preliminary site and building plans for a new home with an attached garage. The house would have approximately 1,200 finished square feet on the main level with an open living -dining -kitchen area, three bedrooms and two bathrooms. It would also have unfinished square footage on the lower level, with an option to have it finished with additional bedrooms, a bathroom, and recreation room. Similar homes have been built by Tollberg on several other EDA lots, including most recently at 5140 Lakeside Avenue North. The builder does not have a buyer for the home. The required public hearing would be scheduled if the EDA gives tentative acceptance of the proposal. REQUESTED EDA ACTION: EDA tentative approval of the purchase proposal with Tollberg Homes for the EDA lot at 4724 Lakeland Avenue North. Page 1 of 1 Q 2 4tf95 301 Site Location jr 1-7- S I DE AVE W1s. �� 04 5119 5111 '5021 , 5015 I� �.I 2 �r ` �15116 5108 UAB 124, 51 �8TH 305 ^ 4747 { 510w 4740 7 51(61 - . 4\71._ 4741 5 D r y 4732 -, 5234 4725 " 41$/3 �."4732- n. i. i 4724 47 24 VE a r 4 4716 47 4721 51233 47 ' 4710 r11 30� W4� i { D8 5232 {Y . .4 5 ' 8100 ej 44 cTH AVE v �1 14fFd_,.•.; Y1'.. r, 111• yet o 250 4724 Lakeland Ave. N. y 4808 Aerial Image Hennepin County 2015 CITY of CRYSTAL City of Crystal 4141 Douglas Drive N. Crystals MN 55422 A N 1 Mile TOLD VG, 14285 1h Ave I Anoka, MN 55304 p: 763-205-2037 If: 763-421-5616 1 www.toliberghomes.com November 16, 2017 City of Crystal EDA Attn: Dan Olson 4141 Douglas Dr N Crystal, MN 55422 Dear Mr. Olson, Please accept our application to purchase the lot at 4724 Lakeland Ave N from the City of Crystal EDA. Tollberg Homes would be prepared to purchase this lot as soon as able and would begin construction immediately. Tollberg Homes, LLC is a local builder out of Anoka that builds single family homes in a variety of communities and price ranges. We build in the Twin Cities as well as in Western North Dakota and we expect to construct about 50 homes annually. Our recent awards include the 2014 People's Choice Award in Bismarck and BATC Reggie Award in 2015. We were also recognized as a top 25 builder in MN for 2016. Current MN communities that we are active in include Lino Lakes, Blaine, Ham Lake, Stillwater, and Little Canada. We have the financial strength to purchase the lots and complete the construction. A commitment letter can be provided upon request. Tollberg Homes has significant experience building in first ring suburbs and in -fill lots. In addition to the 7 lots we have purchased in Crystal over the past three years, we have also built multiple homes in Anoka, Columbia Heights, Coon Rapids, Maplewood, and Little Canada. Our clients who bought these homes have been appreciative of the quality and value delivered by Tollberg Homes. Our warranty also exceeds industry standard as we perform a 4 week and 1 year walk through with all of our clients after closing to address any concerns. We thank you for your consideration for these lots. Building new homes in existing neighborhoods can be a challenging experience. We hope that our track record in your City is proof that we can work well with City staff, be respectful of neighboring homeowners, and also deliver a product that enhances your community. We look forward to your response. Very truly yours, Nathan Jones Chief Operating Officer Tollberg Homes Cell: 651-208-0500 PROPOSALFORM PROPOSAL TO THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL 4724 LAKELAND AVENUE NORTH BUILDER OFFERS $55,000 TO PURCHASE THIS LOT This proposal is not a purchase agreement or other binding contract. At this time, the Builder is submitting a proposal to purchase this lot and build a new single family house in accordance with the RFP Guidelines. If a builder's proposal is tentatively accepted by the EDA board, then EDA staff would work with the Builder to determine the specific house plan and present it at the next EDA meeting. If the EDA board gives final approval at that time, the Builder would sign a Purchase & Redevelopment Agreement and provide $2,000 earnest money for the lot. Only after such an Agreement is signed would a binding contract exist between the EDA and the Builder. BUILDER: (Builder is required to be a Residential Building Contractor licensed by the State of Minnesota.) Name: c l ,a ,.a cry Tel (1): D 3 Tel (2): Address: i Si 5 Al -c Email Pg elan /&- ,-y ,,—, es State License Number: �3Tkk , — Fax: #. - ..) i - �a City/State/Zip:_ .4,ol,c, Signature ' Date REQUIRED ATTACHMENTS AND ADDITIONAL INFORMATION: jp;" Attach one representative example of a house you would plan to build on this lot if your proposal is selected. It does not need to show exactly how it would be placed on the lot; it just needs to show the approximate size, quality and features you would anticipate a new house would have on this lot. A specific house plan would be determined after a proposal is tentatively accepted by the EDA. The EDA will only sell lots to builders who have experience in house construction in Minnesota. Please list the addresses of three houses you have built in Minnesota within the last five years, or attach other evidence of qualification for review by the EDA: House #1: J 1 - y /4,, /0, House #2: S (� i VCS C,- c< t, House #3: t? 'r+ r .� suv SUBMIT PROPOSAL TO: Attn: Dan Olson, Crystal EDA, 4141 Douglas Dr N, Crystal MN 55422 TEL: 763.531.1142 or dan.olson(.@crystalmn.aov PROPOSALS MAYBE SUBMITTED BY HAND DELIVERY, U.S. MAIL OR EMAIL (.pdf format). PROPOSALS MAYBE SUBMITTED AT ANY TIME AND WILL BE CONSIDERED ON A "FIRST COME, FIRST SERVED" BASIS UNLESS THE LOT HAS BEEN OPTIONED BY ANOTHER BUILDER. rN ',4. :U. 1.9. 4.:21 dit o:.l? 'iQ)l ty I INC Ol I Ol.'j I D Amo 1.9. R. 21 I� 0 IT KOOF VENTS ASREsty 1 c�UZj-1 ALL. i.►IZ � to►IZ ,Or Nt✓w NoµE &Y IBL.CIYM iVWFglImo'..",' DEmn- TOLL�C{�!_T �-DMFS I7RUM HNae vnitrx io m.F Tor,'iors ,vm mlomo�'x ellscn �9 vQ.gr�er of om- SMKTICN 06 Hf. lLSI JRX F4m IM s NORIHWESTDMG INC. ai,1; ZI�r-ngiA MMING QL8]IWC m. 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A1jC S('AG(: s+�flT W)VeWT , +:dn 5478+rM4,f• hVpF-LS �I!�n EXT A1F4 FILA R=• 0 slaaG �=.mz uaYa£WRp.P To LODE Gd' lNbuL R= Zl.00 POLY v.�. 'M' G`1P gR'P R:.45 1n1T AIF- FILM R=J e) 23,g.}- - Lx(. "Tu Ps eI(n•cc, jMAY Foki RIM •M11.1. 7,=20.00 v �-ar Mw Iu- OVERMIa',CLEAIJ F�AsN1.lo wjcE 9Ccr TR.z�s Lltvvlse� F To 0•It li°Q WA1-�S Iv°rr� -'li° I� ZI[o_oSCv �� EDA STAFF REPORT "T`�` Annual Resolution — 2018 HRA Levy CRYSTAL FROM: Jean McGann, Finance Director DATE: November 29, 2017 TO: Anne Norris, Executive Director (for December 5, 2017 EDA meeting) SUBJECT: Consider a resolution adopting a proposed HRA tax levy for 2018 On September 5, 2017, the EDA authorized the preliminary HRA levy of $277,200. The EDA has the authority to reduce the HRA levy, however, it cannot be increased. The Housing and Redevelopment Authority tax levy accounts for a portion of the funding. There have not been any recommended budget changes since the preliminary certification in September. The baseline activities proposed for the EDA in 2018 would result in total expenditures of $413,970 and include funding in whole or in part for the following significant activities: • Bass Lake Road Streetscape construction • Home Improvement Incentive Rebates • Acquisition and demolition of one blighted house for redevelopment • Continuing and expanding the city's branding and beautification efforts Staff has prepared the budget on the following page for consideration. In addition to the budgeted amounts, the EDA may authorize additional expenditures from the fund balance for specific projects. PAGE 1 OF 2 Revenue Property taxes Issuer fees on conduit debt Sale of land Principal payments Investment Income IUxiscelleous Transfer in - TIF districts Total Revenues Expenditures Personnel Services Prof essianaI Services Contractual Services Utilities Miscellaneous Capital outlay Transfer out Actual Actual Budget Budget 2015 2016 2017 2018 $ 270,600 283,771 $ 277,200 $ 277,200 10,919 12,419 10,000 10,000 84,015 70,000 100,000 1055,000 150,534 15,732 1, - 29,961 38,001 36,000 3.5,000 1,123 - 133,000 - - 1,800 - - $ .547,152 $ 421,723 $ 423, 200 $ 427, 200 $ 115,608 $ 234,244 $ 242,672 $ 250,163 21,063 28,331 41,920 33,000 140,314 159,628 66,300 35,400 - 2,245 1, 1,300 15,489 33,615 7,812 4,107 - 179 133,000 90,000 20,690 - - - Total Expenditures $313,154 $ 454,242 $493,304 $413,970 Net Revenue Over ( Under) Expenditures $ 233,988 $ (32,519) $ (70,104) $ 13,230 Fund Balance, January; 1 $ 4,237,061 $ 4,471,049 $ 4,438,.530 $ 4,368,426 =und Balance, December 3_ $ 4,471,049 $ 4,438,530 $ 4,368,426 $ 4,381,656 EDA adoption of the attached resolution is requested. PAGE 2OF2 ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 2017 - 13 RESOLUTION ADOPTING THE 2018 BUDGET AND PROPERTY TAX LEVY AND REQUESTING THEIR APPROVAL BY THE CITY COUNCIL WHEREAS, the Economic Development Authority of the City of Crystal (the "EDA") undertakes redevelopment and housing activities in the City of Crystal, Minnesota (the "City"); and WHEREAS, pursuant to authority granted by Minnesota Statutes, Section 469.02 and the enabling resolution of the EDA, the EDA exercises all of the powers of a housing and redevelopment authority ("HRA") as described in Minnesota Statues, Section 469.001 to 469.047 (the "Act"); and WHEREAS, under Section 469.033 Subdivision 6 of the Act, an HRA is authorized to levy and collect special benefit taxes on all taxable property under the jurisdiction of the HRA, that is, property in the City; and WHEREAS, the permitted levy is 0.0185 percent of the estimated market value of the property in the City. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Crystal as follows: 1. The EDA hereby adopts a 2018 proposed budget for housing and redevelopment in the amount of $413,970. 2. The EDA hereby adopts a proposed property tax levy of $277,200 for the purpose of funding the adopted budget in conformance with Section 469.033, Subdivision 6 of Minnesota Statutes. 3. The Executive Director is authorized and directed to transmit a certified copy of this Resolution to the City Council of the City of Crystal for its consent and approval as provided by Section 469.033 of the Act and for certification to the Property Tax Manager of Hennepin County. Adopted this 5th day of December, 2017. Jeff Kolb, President Anne Norris, Executive Director 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 CITY of Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov CRYSTAL. City Council Meeting Agenda Dec. 5, 2017 7 p.m. Council Chambers The city manager's comments are bolded. 1. Call to Order, Roll Call and Pledge of Allegiance 2. Approval of Agenda The Council will consider approval of the agenda.* 3. Consent Agenda The Council will consider the following items, which are routine and non -controversial in nature, in a single motion: 3.1 Approval of the minutes from the following meetings: a. The regular City Council meeting on Nov. 21, 2017. b. The regular City Council work sessions on Nov. 21, 2017. 3.2 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. 3.3 Approval of a resolution accepting the following donation: a. $225 from Blaine Explorer Post 939 for Crystal Explorer Post. 3.4 Approval of the 2018 regular City Council meeting and work session schedule. 3.5 Approval of a resolution designating the polling locations for 2018 elections. 3.6 Approval of a resolution making annual elections for the 2018 insurance policy. 3.7 Approval of cancelling the December 14 City Council Work Session.* 4. Open Forum (The City Council appreciates hearing from citizens about items of concern and desires to set aside time during each meeting for Open Forum. To provide ample opportunity for all, speaking time is limited to three minutes and topic discussion is limited to ten minutes. The Mayor may, as presiding officer, extend the total time allowed for a topic. By rule, no action may be taken on any item brought before the Council during Open Forum. The Council may place items discussed during Open Forum onto subsequent council meeting agendas.) Crystal City Council Meeting Agenda Dec. 5, 2017 5. Public Hearing 5.1 The Mayor will open a public hearing to receive comment and consider a resolution approving the 2018 property tax levy, 2018 Housing and Redevelopment Authority levy and 2018 budgets. Finance Director McGann will provide a short presentation on the proposed 2018 budgets and levies prior to responding to questions from the Council and residents. Recommend approval of the resolution approving the 2018 property tax levy, 2018 Housing and Redevelopment Authority levy and 2018 budgets. 6. Regular Agenda 6.1 The Council will consider approval of disbursements over $25,000 submitted by the finance department to the city council, a list that is on file in the office of the finance department. Recommend approval of disbursements over $25,000. 6.2 The Council will consider a resolution authorizing the purchase of public works 800mhz radios. Next year's capital budget includes $55,000 for the purchase of replacement and new 800 mhz radios for the Public Works department. The vendor has a current promotion which would allow us significant savings if we order the radios prior to December 15. Finance Director McGann supports authorizing the purchase now in order to realize the savings. Recommend approval of the resolution authorizing this purchase. 6.3 The Council will consider a resolution authorizing the purchase of replacement police mobile and portable radios. The Police 2018 and 2019 capital budgets include more than $200,000 for the purchase of replacement mobile and portable radios. The vendor has a current promotion which would allow us to purchase radios with additional technology and more features than what is budgeted if we order prior to December 15. Finance Director McGann supports authorizing this purchase to maximize the equipment we have budgeted. Recommend approval of the resolution authorizing this purchase. 6.4 The Council will consider advisory commission appointments. The City Council interviewed advisory commission candidates at its November 9 work session. Recommend approval of the appointments as outlined in the staff report. 7. Announcements Crystal Sparkles holiday lighting contest deadline is Friday, Dec. 8. Nominations forms are available at the Crystal Community Center and city's website at www.crVstalmn.gov. b. The Canadian Pacific Holiday Train is scheduled to stop at New Hope Ice Arena on Sunday, Dec. 10 at 3:35 p.m. Page 2 of 3 Crystal City Council Meeting Agenda Dec. 5, 2017 C. The next City Council meeting is Tuesday, Dec. 19 at 7 p.m. in the Council Chambers at City Hall. d. Crystal Business Association meets on Wednesday, Dec. 20 at 11:30 a.m. at Broadway Pizza. e. City offices will be closed Monday, Dec. 25 in observance of the Christmas holiday. f. The Crystal Ball will be held Saturday, March 24, 2018 at Crystal Community Center. Tickets are available at the Crystal Community Center and city's website at www.crystalmn.gov. g. Girl and Boy Scout troops are invited to lead the pledge at City Council meetings. Troops who are interested may contact city staff for information. h. City Council meetings and work sessions are open to the public. Current and previous meetings are available for viewing and listening at www.crystalmn.gov. 8. Adjournment 9. Dec. 5, 2017 Meeting Schedule Time Type of meeting Location 6:15 p.m. First City Council work session to discuss: Conference Room A . Amending Council rules — public attendance Economic Development Authority (EDA) meeting to consider: 6:45 p.m. • Tentative acceptance of a proposal from Tollberg Council Chambers Homes for an EDA lot at 4724 Lakeland Ave. N. • 2018 Housing and Redevelopment Authority levy 7 p.m. City Council meeting Council Chambers Second City Council work session to discuss: Following the • Shared recreational facilities City Council • Constituent issues update Conference Room A meeting • New business* • Announcements* * Denotes no supporting information included in the packet. Have a great weekend. See you at Tuesday's meeting. Page 3 of 3 City Council meeting minutes 4141 Douglas Dr. N., Crystal, MN 55422-1696 763-531-1000 • Fax: 763-531-1188 • www.crystalmn.gov Nov. 21, 2017 3.1(a) 1. Call to Order Pursuant to due call and notice thereof, the regular meeting of the Crystal City Council was held on Nov. 21, 2017 at 7:01 p.m. in the Council Chambers at City Hall, 4141 Douglas Dr. N. in Crystal, Minnesota. Mayor Adams called the meeting to order. Roll Call Mayor Adams asked the city clerk to call the roll for elected officials. Upon roll call, the following attendance was recorded: Council members present: LaRoche, Parsons, Adams, Budziszewski, Deshler and Kolb. Absent: Dahl. City staff present: City Manager A. Norris, City Attorney T. Gilchrist, Assistant City Manager/Human Resources Manager K. Therres, Community Development Director J. Sutter, Fire Chief S. Larson, Deputy Police Chief D. Leslin, Public Works Director/ City Engineer M. Ray, Recreation Director J. Elholm and City Clerk C. Serres. Pledge of Allegiance Mayor Adams led the Council and audience in the Pledge of Allegiance. 2. Approval of Agenda The Council considered approval of the agenda. Z-,ql%k IW Moved by Council Member Parsons and seconded by Council Member LaRoche to approve the agenda. kNe*' Motion carried. Council Member Budziszewski requested to remove item 3.4 from the consent agenda and add it to the beginning of the regular agenda. 3. Consent Agenda The Council considered the following items, which are routine and non -controversial in nature, in a single motion: 3.1 Approval of the minutes from the following meetings: a. The regular City Council meeting on Nov. 7, 2017. b. The regular City Council work sessions on Nov. 7, 2017. c. The regular City Council work session on Nov. 9, 2017. Page 1 of 3 City Council meeting minutes Nov. 21, 2017 3.1(a) 3.2 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. 3.3 Approval of reciprocal agreement with Golden Valley and New Hope for recreation facilities. 3.4 Removed from consent agenda and added as item 5.1 to the regular agenda. Moved by Council Member Deshler and seconded by Council Member Budziszewski to approve the consent agenda as read. Motion carried. 4. Open Forum No public comment was given during open forum. S. Regular Agenda 5.1 The Council considered a resolution of final acceptance of the public improvements for the Gardendale Development. Moved by Council Member Kolb and seconded by Council Member LaRoche to adopt the following resolution, the reading of which was dispensed with by unanimous consent: RESOLUTION NO. 2017-116 FINAL ACCEPTANCE OF THE PUBLIC IMPROVEMENTS FOR THE GARDENDALE DEVELOPMENT Voting aye: LaRoche, Parsons, Adams, Deshler and Kolb. Absent, not voting: Dahl. Abstentions: Budziszewski. Motion carried. 5.2 The Council considered approval of disbursements over $25,000 submitted by the finance department to the City Council, a list that is on file in the office of the finance department. Moved by Council Member Parsons and seconded by Council Member Deshler to approve the list of disbursements over $25,000. the aye: LaRoche, Parsons, Adams, Budziszewski, Deshler and Kolb. Absent, not voting: Dahl. Motion carried. 5.3 The Council considered a resolution approving a conditional use permit for a drive-through facility at the Pizza Ranch restaurant at 5526 West Broadway (Crystal Gallery Mall). Community Development Director J. Sutter and applicant Randall Hubin addressed the Council. Page 2 of 3 City Council meeting minutes Nov. 21, 2017 3.1(a) Moved by Council Member Kolb and seconded by Council Member LaRoche to adopt the following resolution, the reading of which was dispensed with by unanimous consent: RESOLUTION NO. 2017 —117 RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR RANDALL HUBIN Voting aye: LaRoche, Parsons, Adams, Budziszewski, Deshler and Kolb. Absent, not voting: Dahl. Motion carried, resolution declared adopted. 5.4 The Council considered second reading of an ordinance adopting Subpart 3 to replace Subpart 2 in Building Code Chapter 1306 pertaining to fire sprinkler requirements. A 11%re Community Development Director J. Sutter addressed the Council. Moved by Council Member LaRoche and seconded by Council Member Deshler to adopt the following ordinance: ORDINANCE NO. 2017 — 06 AN ORDINANCE AMENDING CHAPTER 4 OF THE CRYSTAL CITY CODE REGARDING SPECIAL FIRE PROTECTION SYSTEMS And further, that this is the second and final reading. Voting aye: LaRoche, Parsons, Adams, Budziszewski, Deshler and Kolb. Absent, not voting: Dahl. Motion carried. 6. Announcements The Council made several announcements about upcoming events. 7. Adjournment Moved by Council Member Deshler and seconded by Council Member Budziszewski to adjourn the meeting. The meeting adjourned at 7:32 p.m. ATTEST: Chrissy Serres City Clerk Page 3 of 3 Jim Adams, Mayor Motion carried. City Council first work session minutes 4141 Douglas Dr. N., Crystal, MN 55422-1696 CITY of 763-531-1000 • Fax: 763-531-1188 • www.crystalmn.gov CRYSTAL Nov. 21, 2017 3.1(b) Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the first work session of the Crystal City Council was held at 6:20 p.m. on Nov. 21, 2017 in Conference Room A, 4141 Douglas Dr. N., Crystal, Minnesota. Mayor Adams called the meeting to order. Attendance The city clerk recorded the attendance for City Council members and staff: Council members present: LaRoche, Parsons, Adams, Budziszewski, Deshler and Kolb. Absent: Dahl. City staff present: City Manager A. Norris, City Attorney T. Gilchrist, Assistant City Manager/Human Resources Manager K. Therres, Public Works Director/City Engineer M. Ray, Recreation Director J. Elholm and City Clerk C. Serres. Agenda The Council and staff discussed the following agenda item: 1. Snow removal update Mayor Adams called for a recess at 6:35 p.m. Mayor Adams reopened the work session at 8:10 p.m. The commission interview did not occur as the candidate was unable to attend the work session. Adjournment 4, The work session adjourned at 8:10 p.m. Jim Adams, Mayor ATTEST: Chrissy Serres City Clerk City Council second work session minutes Nov. 21, 2017 3.1(b) 4141 Douglas Dr. N., Crystal, MN 55422-1696 CITY of 763-531-1000 • Fax: 763-531-1188 • www.crystalmn.gov CRYSTAL Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the second work session of the Crystal City Council was held at 8:10 p.m. on Nov. 21, 2017 in Conference Room A, 4141 Douglas Dr. N., Crystal, Minnesota. Mayor Adams called the meeting to order. I. Attendance The city clerk recorded the attendance for City Council members and staff: Council members present: LaRoche, Parsons, Adams, Budziszewski, Deshler and Kolb. Absent: Dahl. City staff present: City Manager A. Norris, Assistant City Manager/Human Resources Manager K. Therres, Community Development Director J. Sutter, Public Works Director/ City Engineer M. Ray, Recreation Director J. Elholm, Communications Coordinator M. Peterson and City Clerk C. Serres. II. Agenda The Council and staff discussed the following agenda items: 1. Logo/branding update S 2. MAC Wildlife Area Improvement Project update 3. Park System Master Plan including 2018-19 park capital projects 4. Review design plans and cost estimate for Bass Lake Road Streetscape project 5. City manager monthly check in 6. Constituent issues update 7. New business 8. Announcements III. Adjournment The work session adjourned at 9:37 p.m. Jim Adams, Mayor ATTEST: Chrissy Serres City Clerk City of Crystal Council Meeting 3.2 Dec. 5, 2017 Applications for City License Rental — Renewal 5017 Angeline Ave N — Clifford J Benson (Conditional) 4652 Brunswick Ave N — Building Ventures LLC (Conditional) 3616-3618 Douglas Dr N — Reginald and Mark Orth (Conditional) 3136 Hampshire Ave N — Katherine and Pedro Meza (Conditional) 4065 Jersey Ave N —Joshua Kruse (Conditional) 2731 Kentucky Ave N — Brandon and Danyell Schendel 5448 Orchard Ave N — Brian Gustafson 5909 Quail Ave N — AA Homes LLC (Conditional) 5416 Toledo Ave N —Teresa Sturges (Conditional) 4825 Vera Cruz Ave N — Mar -Don Investments Inc (Conditional) 3613 Welcome Ave N —Timothy Fuhrmann 3211 Zane Ave N — Cindy Elliott 8201 35th Ave N — Cosco Property 4 LLC 662141st PI N — IH2 Property Illinois LP 5333 49th Ave N —Joseph Anton 6818 58th Ave N — IH2 Property Illinois LP 7724 59th Ave N —Justin Quirk (Conditional) Page 1 of 1 3.3 CITY OF CRYSTAL RESOLUTION NO. 2017 - RESOLUTION ACCEPTING A DONATION FROM BLAINE EXPLORER POST 939 WHEREAS, Minnesota Statute §465.03 requires that all gifts and donations of real or personal property be accepted only with the adoption of a resolution; and WHEREAS, said donations must be accepted by a resolution adopted by the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Crystal to accept the following donation: Donor Purpose Amount Blaine Explorer Post 939 Crystal Explorer Post $225 And BE IT FURTHER RESOLVED that the Crystal City Council sincerely thanks the Blaine Explorer Post for their generous donation. Dated: Dec. 5, 2017 Jim Adams, Mayor ATTEST: Chrissy Serres City Clerk 3.4 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 53 1 -1000 • Fax: (763) 531-1188 • www.crystalmn.gov AL 2018 CRYSTAL CITY COUNCIL REGULAR MEETING AND WORK SESSION SCHEDULE Regular meetings of the Crystal City Council are generally held the first and third Tuesday of each month in the Council Chambers at City Hall, 4141 Douglas Drive North, beginning at 7 p.m. In addition, the City Council holds regular work session meetings before and after regular City Council meetings at City Hall. Standing work sessions are held immediately following the regular City Council meeting and Economic Development Authority (EDA) meeting, if scheduled. Additional work sessions are held beginning at 6:30 p.m. Moreover, regular additional work sessions of the City Council are held on the second Thursday of each month at City Hall beginning at 6:30 p.m. If the date of a regular meeting falls on a holiday or an election day, the date of the rescheduled meeting is reflected on the schedule. If an additional meeting is held, or if a regular meeting is rescheduled to a different date, time, or place, notice of the meeting will be posted at City Hall and on the City's website. All meetings are open to the public, but the City Council may close meetings to the public to conduct business authorized or required by law to be conducted in a closed session. *Denotes a change in the regular meeting or work session schedule. January Jan. 2 City Council and work session meetings Jan. 11 Work session meeting Jan. 16 City Council and work session meetings February Feb. 5* City Council and work session meetings Feb. 8 Work session meeting Feb. 20 City Council and work session meetings March Sept. 4 March 6 City Council and work session meetings March 8 Work session meeting March 20 City Council and work session meetings April April 3 City Council and work session meetings April 12 Work session meeting April 17 City Council and work session meetings May May 1 City Council and work session meetings May 10 Work session meeting May 15 City Council and work session meetings June Sept. 4 June 5 City Council and work session meetings June 14* No work session meeting June 19 City Council and work session meetings July , July 12 Work session meeting July 17* City Council and work session meetings (one meeting in July on 31 Tuesday) August Aug. 9 Budget work session meeting Aug. 16 Budget work session meeting Aug. 21* City Council and work session meetings (one meeting in Aug. on 31 Tuesday) September Sept. 4 City Council and work session meetings Sept. 13 Work session meeting Sept. 17* City Council and work session meetings October Oct. 2 City Council and work session meetings Oct. 11 Work session meeting Oct. 16 City Council and work session meetings November Nov. 13* City Council and work session meetings Nov. 15* Work session meeting Nov. 20 City Council and work session meetings December Dec. 4 City Council and work session meetings Dec. 13 Work session meeting Dec. 18 City Council and work session meetings All regular meetings of the City Council are broadcast live on channel 16. Meetings are rebroadcast the following Sunday at 6:30 p.m. and on Monday at 10:30 a.m. Live meeting webstreaming and past meetings can also be viewed at www.crystalmn.gov, under Online Services, go to OnDemand Council/EDA Meeting Videos. 3.5 CITY OF CRYSTAL MINNESOTA RESOLUTION NO. 2017 - RESOLUTION DESIGNATING THE 2018 POLLING LOCATIONS IN CRYSTAL WHEREAS, Minnesota Statutes § 204B.16 requires that cities designate polling locations for each election precinct within their city; and WHEREAS, per statute this must be done by December 31 of each year and the city will designate by resolution; and WHEREAS, the following locations are designated: Ward 1, Precinct 1: Neill Elementary School, 6600 27th Ave. N. Ward 1, Precinct 2: The Church of Jesus Christ of Latter -Day Saints, 2801 Douglas Dr. N. Ward 1, Precinct 3: The Church of Jesus Christ of Latter -Day Saints, 2801 Douglas Dr. N. Ward 2, Precinct 1: Brunswick United Methodist Church, 6122 42nd Ave. N. Ward 2, Precinct 2: Crystal City Hall, 4141 Douglas Dr. N. Ward 2, Precinct 3: Crystal City Hall, 4141 Douglas Dr. N. Ward 3, Precinct 1: Crystal Community Center, 4800 Douglas Dr. N. Ward 3, Precinct 2: St. James Lutheran Church, 6700 46th Pl. N. Ward 3, Precinct 3: Brunswick United Methodist Church, 6122 42nd Ave. N. Ward 4, Precinct 1: VFW Post 494, 5222 56th Ave. N. Ward 4, Precinct 2: Crystal Community Center, 4800 Douglas Dr. N. WHEREAS, if a location changes, a re -designation will be a separate action prior to election with notice sent to registered voters at least 25 days before the next election. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CRYSTAL, MINNESOTA that the polling locations listed above are the designated 2018 polling locations in Crystal. Adopted by the Crystal City Council this 5th day of December, 2017. Jim Adams, Mayor ATTEST: Chrissy Serres, City Clerk 3.6 CYMemorandum l. DATE: November 22, 2017 TO: Mayor and City Council FROM: Anne Norris, City Manager till SUBJECT: Annual Elections for the 2018 Insurance Policy Background As part of the annual insurance renewal process, the City Council must determine whether to waive the statutory limit on tort liability and providing worker's compensation insurance for the City Council. Liability Insurance: The City must select one of the following options for the statutory tort limit on liability claims: Do not waive the statutory tort limit. In this case, no individual will be able to recover more than $500,000 from the City. For accidents or incidents where multiple persons have claims against the City, the total for all claimants will be limited to $1,500,000. . Waive the statutory tart limit but do not purchase excess liability insurance. In this case, an individual will be able to recover up to $1,500,000 from the City. For accidents or incidents where multiple persons have claims against the City, the total for all claimants will still be limited to $1,500,000. Historically, the City has opted not to waive the limit. Workers Compensation Insurance for City Council Members: Unlike city employees, elected officials are not automatically covered by the worker's compensation law. Cities wishing to cover elected officials need to adopt a resolution indicating the elected officials will be covered by worker's comp. Providing the coverage means that a city council member who is injured while on city business would receive worker's compensation benefits. The risk of such an injury is low, but the benefits would be important to the individual if it happened. The cost of this coverage is minimal and the City has historically opted for this coverage. 3.6 Insurance Agent: The City of Crystal has used the Nesbit Agencies as its insurance agent for many years. A flat fee is paid to the agent instead of a commission. I recommend staying with the Nesbit Agencies, because their service has beer -pd and their agents have developed the knowledge of the city required to effectively represent the City's interests. Recommendation: Recommend approval of the attached resolution making the options regarding not waiving tort liability limit, providing worker's compensation coverage for the City Council and remaining with Nesbit Agencies as the City's insurance agent. Attach: RESOLUTION NO. 2017 - RESOLUTION MAKING ANNUAL ELECTIONS FOR THE 2018 INSURANCE POLICY WHEREAS, the City of Crystal must declare whether or not to waive the statutory limit on tort liability established by Minnesota Statutes 466.04, and WHEREAS, the City of Crystal must declare whether or not to provide worker's compensation insurance for elected officials, and WHEREAS, the City of Crystal must appoint the insurance agent that will represent the city in dealing with the League of Minnesota Cities Insurance Trust. NOW, THEREFORE, BE IT RESOLVED by the City Council that the City of Crystal does not waive the statutory limit on tort liability established by Minnesota Statutes 466.04 for the 2018 insurance policy. BE IT FURTHER RESOLVED that City of Crystal elects to provide worker's compensation insurance for members of the City Council while on city business. BE IT FURTHER RESOLVED that City of Crystal appoints the Nesbit Agencies as its agent of record for purchasing insurance policies. Adopted by the Crystal City Council this 5th day of December, 2017. Jim Adams, Mayor ATTEST: Christina Serres, City Clerk 3.6 5.1 Memorandum CITY of CRYSTAL DATE: November 29, 2017 TO: Mayor and City Council Anne Norris, City Manager FROM: Jean McGann, AEM Financial Solutions, LLC SUBJECT: Consideration of Resolution Adopting the 2018 Property Tax Levies, 2018 budget the 2018 HRA levy. Background The City Council has held three work sessions to discuss property tax revenues and budget proposals. These sessions were held on August 10th and August 17thand November 7th, 2017. The outcomes of the budget work sessions were to provide for a preliminary property tax levy increase of 6% and to add one Parks Maintenance position in 2018. In determining the 2018 General Fund budget, there are several factors that influenced both revenue and expenditures. The primary factors are outlined below. Revenue factors: Property tax increase projected at 8.86%due to reallocation of LGA Property tax -budgeted for delinquent collections Local Government Aid (LGA) reallocation Rol ice - COPS grant Police - Drug Task Force Police - post board reimbursement per legislature Fines and forfeits reduced due to anticipated collections Investment income increased due to higher interest rates and change in liquidity policy M iscellaneous - budgeted for historical donations and other reimbursements Charges for services- pawn shop transaction fees Charges for services - pool passes Charges for services- city provided services for nuisance abatement activity Interfund services increased due to analysis of cost of services Transfers in - reduction due to onetime transfer in 2017 Tax forfeit sales Miscellaneous increases Total increase in revenue 767,779 52;000 (266,220+) 85,000 30,000 29,700 (22,000) 8,000 3 2, 600 15,000 9,000 9,500 98,988 (100,014) 28,000 44 �3S 6zb.b5'Y 5.1 Expenditure factors: General Government Administration - web site update 40,000 Elections- 2018 is election year 47,274 Public Safety % Police -wages and benefitsfar 2 officersfunded with COPSgrant approved afterthe adoption ofthe 2017 budget 162,000 Police- Logis charges/body camera storage 91000 Police- past board reimbursement per legislature 29,700 Fire- increase in capital cost and wage/benefit adjustment 59,000 Public Works. $ Parks- addition of Parks Maintenance employee 8o,o95 General fund wages and benefits 307,644 Miscellaneous increases 90,946 Total increase in expenditure $ 825,659 Property taxes While property taxes support approximately 69% of General Fund activity, they also support buildings, vehicle/equipment and capital improvements throughout the city. Outlined below is a summary of where property taxes have been distributed over the past 3 years. $ 9,313,153 $ 10,147,907 $ 10,267,620 $ 10,905,+089 617.269 6.00% Other 2018 Budgets Additional discussion was held regarding Special Revenue, Capital Project and Enterprise Fund budget. Details for these budgets can be found in the 2018 Draft Budget Document. Conclusion The City Council is requested to consider approving the 2018 property tax levy, 2018 Budget and the 2018 HRA levy. Increase % 2015 20146 2017 Levied 2018 Proposed (Decrease) Change General levy $ 8,302,000 $ 8,571,947 $ 6,657,000 $ 9,436,779 $ 779,779 9.01 % Capital improvements levy 563,153 Police Equipment Revolving 134,700 137,400 151,900 14,500 10.55 PIR 261,000 266,220 301,210 34,990 13.14 Major Building Replacement 563,153 574,400 574,400 - 0.00 Street Maintenance 160,307 163,644 163„600 - 0.00 Total Capital Improvement levy 1,119,160 1,141,620 1,191,110 49,490 4.34 EDA 239,000 246,200 277,200 277,200 - 0.04 Total levy r $ 9,104,153 $ 9,937,307 $ 10,075,620 $ 10,905,069 829,269 8.23 Market value based referendum levy $ 209,000 $ 210,600 $ 212,000 $ - (212,000) -100:00 $ 9,313,153 $ 10,147,907 $ 10,267,620 $ 10,905,+089 617.269 6.00% Other 2018 Budgets Additional discussion was held regarding Special Revenue, Capital Project and Enterprise Fund budget. Details for these budgets can be found in the 2018 Draft Budget Document. Conclusion The City Council is requested to consider approving the 2018 property tax levy, 2018 Budget and the 2018 HRA levy. 5.1 Dece C Budget Tim 5.1 Aug. 10 Work session review of general fund, capital budget, enterprise funds, property tax levy, utility rates and fee schedule. Aug. 17 Work session to review capital budgets and capital funding. Sept. 5 Adopt preliminary 2018 operating budgets and preliminary tax levy. Sept. 19 Adopt 2018 fee schedule and utility rates. Oct.3 Opportunity for public input. Nov. 7 Work session to discuss 2018 General Fund Budget. Determination on allocating resource for Parks Maintenance position or capital improvements. Dec. 5 Review and potentially adopt final 2018 property tax levy and budget. CITY of CRYSTAL Council Prio 5.1 OTo create a thriving business climate r�1 U To develop fiscally sound and stable financial policies and practices OTo create strong neighborhoods 0 0 0 r♦� Budget Fay 5.1 Long-term Planning Comprehensive Capital Plan Parks Master Plan Debt Reduction Parks Maintenance position a I� City of Crystal Ge Administration Public Safety MAYOR &CC HUMAN R----•---- • ------••-- LEGAL ELECTIONS FINANCE 5.1 POLICES FIRE Community PLANNING AND CODE ENFORCEMENT BUILDING INSPECTIONS Development HOUSING INSPECTIONS I ENVIRONMENTAL HEALTH APublic Works Recreation ENGINEERING I STREETS I PARK MAINTENANCE FORESTRY I CITY BUILDINGS RECREATION I COMMUNITY CENTER WATERSLIDE/POOL Revenue Sum 5.1 Category,.2017 2018 , Actual Budget ProposedActual Change % Change Taxes: Property $8,372,633 $8,100,043 $8,783,900 $ 9,337,559 $553,659 9.33% & Assessments Licenses & 808,695 773,479 836,256 844,228 7,972 .95% Permits Intergovernmenta 1,991,430 2,048,954 1,973,909 1,868,789 (105,120) (5.33%) (Revenue Charges for 673,370 793,092 766,677 830,751 64,074 8.36% Services Investment 48,167 75,154 60,000 68,000 8,000 13.33% Income Fines & Forfeits 309,358 322,009 326,000 304,000 (22,000) (6.75%) Interfund Services 308,213 332,886 335,061 434,049 98,988 29.54% Transfers In - - 110,414 10,400 (100,014) N/A% Other 33,079 58,796 19,200 73,080 53,880 280.63% TOTAL $12,544,945 $12,504,413 $13,211,417 $14,037,076 $825,659 6.25% Expenditure Sur 5.1 Category 2015 Actual 2016 Actual 2017 Budget 2018 Proposed 2018 Change 2018 % Change City Council, Admin., Elections, Legal, Finance $2,072,481 $2,333,780 $2,383,046 $2,291,364 $91,682 (3.85%) Police 4,555,663 4,851,832 5,057,200 5,629,175 571,975 11.31% Fire 1,188,463 1,239,663 1,300,110 1,360,507 60,397 4.65% Community Development 736,814 523,035 559,814 571,191 11,377 2.03% Streets, Parks, Buildings, Forestry, Engineering 2,358,462 2,256,907 2,451,239 2,590,741 139,502 5.69% Recreation 1,326,338 1,448,395 1,460,008 1,594,098 134,090 9.18% Transfers out 519,994 - - - - - Total $12,758,213 $12,653,612 $13,211,417 $14,037,076 $825,659 6.25% Budget Fac 5.1 Major Property Tax Increase $501,559 $21.95 Police COPS grant $85,000 $3.72 Delinquent Property Tax Collection $52,000 $2.28 Police Drug Task Force $30,000 $1.31 Police Post Board Reimbursement $29,700 $1.30 Historic Donations and reimbursements $32,600 $1.43 Interfund services based on cost analysis $98,988 $4.33 Miscellaneous Increases $49,326 $2.16 Others + transfer/fine reductions ($53,514) ($2.34) Total $825,659 $36.14 *Per capital costs based on the Metropolitan Council's estimated population of 22,855 for the City of Crystal in 2016. Budget Fac Wage/benefit adjustments and addition of 1 Parks Maintenance staff Fully funded two police officers previously funded by COPS grant Increasing costs of technology Elections Website Redesign (not to exceed estimate) Miscellaneous increases Total 5.1 $387,739 $162,000 $97,700 $47,274 $40,000 $90,946 $825,659 $16.97 $7.09 $4.28 $2.07 $1.75 $3.98 $36.14 *Per capital costs based on the Metropolitan Council's estimated population of 22,855 for the City of Crystal in 2016. CITY of CRYSTAL $12,000,000 $10,000,000 $6,000,000 $4,000,000 $2,000,000 5.1 Layered Revenue 2010 2011 2012 2013 2014 2015 2016 2017 2018 Budget Proposed Budget ■ Intergovernmental Revenue 0 Property taxes and Special Assessments Revenue Comparis $12,000,000 $10,000,000 I.: 111 111 $6,000,000 $4,000,000 $2,000,000 Taxes special assessments 5.1 CITY of CRYSTAL interyovernm �,naryes ana Other Transfers in ental fees 2016 Actual 1 $8,100,043 1 $2,048,954 $1,888,580 $133,950 $332,886 2017 Budgetl $8,783,900 1 $1,973,909 $1,928,933 $79,200 $445,475 2018 Budgetl $9,603,779 1 $1,868,789 $1,978,979 $141,080 $444,449 5.1 Expenditures Compariso $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 General Fund S CITY C3eneml Fund 1 ... (20 16) Spending - r. • r. Golden Valley $18,279,730 21,376 $855.15 * Robbinsdale $9,536,186 14,461 $659.44 • Brooklyn Center $20,448,010 30,870 $662.39 • New Hope $13,565,476 20,877 $649.78 • Brooklyn Park $48,574,630 79,707 $609.41 • Crystal $13,211,417 22,855 $578.05 CITY of CRYSTAL 5.1 Levy Summa 5.1 Fund ,. ,: ,: ActualActualLevied Proposed Change General Fund $8,302,000 $8,517,947 $8,657,000 $9,436,779 $779,779 Pool Bonds 208,849 210,600 212,000 - ($212,000) Debt Service 246,200 277,200 EDA 239,000 277,200 $0 Capital 563,153 1,119,160 1,141,620 1,191,110 49,490 Improvements Levy Total Tax Levy $9,313,153 1 $10,147,907 $10,287,820 $10,905,089 $617,269 The city's $10,905,089 total tax levy in 2018 would be 6% higher than 2017. Levy Detail - Ca Improvement Funds Fund 2017 ,: 2018 2018 Levied Proposed Change % Change Police Equipment $137,400 $151,900 $14,500 10.55% Revolving * PIR 266,220 301,210 34,990 13.14% Major Building 574,400 574,400 - 0% Replacement Street Maintenance 163,600 163,600 - 0% Total Capital $1,141,620 $1,191,110 $49,490 4.34% Improvement Levy e PIR designated for park improvements. 5.1 Tax Rate Cor CITY 2017 Tax Rate • Brooklyn Center 70.4980% • New Hope 58.8780% • Brooklyn Park 54.3896% Golden Valley 56.1090% • Robbinsdale 49.2480% • Crystal 48.9622% cofRYSTAL 5.1 Property Tax Levi The following table summarizes the estima 5.1 residential homes based on the proposed increase in city tax levy. IX H@w Pir@p@M Ummo Mork �od@@� Video To play From Here 5.1 2018 Property Tax Exa $199,000 Based on Truth in Taxation Notice CIE Estimated Market Value $1473000 $1673000 $182,000 $199,000 $232,000 Taxable Market Value 122,990 1443790 1613140 1795670 215,640 Hennepin County 555 654 727 811 973 City of Crystal 604 711 791 883 13059 Robbinsdale Schools 737 854 941 13040 15232 Metropolitan Council 33 39 43 48 58 r Taxing Districts 1 71 1 83 1 1041 1161 139 MN Property Tax • Homeowners Regular Property Tax Refunc (based on household income). 5.1 • Homeowners Special Property Tax Refund — Property tax must have increased by at least 12% and at least $100. • Increase must not be related to improvements to property. • Renters Property Tax Refund (based on household income). • Form M1PR and instructions available @ www.taxes.state.mn.us • Paper forms may be obtained by calling the Minnesota Department of Revenue at 651-296-3781 or 1-800-652-9094. CITY of CRYSTAL Next Step 5.1 Dec. 5 1 Public Input meeting in accordance with Truth in Taxation. Dec. 5 1 Final adoption of 2018 property tax budget and levy. Dec. 19 Continuation date if adoption of 2018 Property Tax Levy and Budget does not occur on Dec. 5, 2017. • a Ah 0 ,kFW INIS iR ATk)k CWNut. CHANNO 5.1 RESOLUTION NO. 17 - RESOLUTION APPROVING 2018 PROPERTY TAX LEVY, 2018 HOUSING AND REDEVELOPMENT AUTHORITY LEVY AND 2018 BUDGET WHEREAS, the City of Crystal is required by Section 7.05 of the City of Crystal Charter and State law to approve a resolution setting forth an annual tax levy to the Hennepin County Auditor; and WHEREAS, the City Council has met to discuss the 2018 budget and property tax levy and has held the required Public Input meeting in conformance with the requirements of the City Carter and State Statue, and WHEREAS, the Housing and Redevelopment Authority levy is limited to .000185 of taxable market value of all property located within the City of Crystal, and WHEREAS, the City Council has received the proposed budget document; NOW THEREFORE BE IT RESOLVED by the City Council of the City of Crystal that the 2018 budget shall be as follows: Capital Project Enterprise Total Budget General Fund EDA Funds Funds 2018 Revenue $ 2,291,354 $ 323,970 $ - $ - $ 2,615,334 Police and Fire 6,989,682 - - - 6,989,682 Property Taxes and Special Assessments $ 9,603,779 $ 277,200 $1,375,680 $ 55,000 $11,311,6.59 Licenses and Permits 844,228 - - - 844,228 Intergovernmental Revenue 1,868,789 - 1,114,641 1,000,000 3,983,430 Charges for Services 830,751 - - 7,913,926 8,744,677 Fines and Forfeits 304,000 - - - 304,000 Interest Income 68,000 35,000 142,.500 43,600 289,1(}0 Miscellaneous 73,080 10,000 15,000 95,500 193,580 Interfund Services 434,049 - - - 434,049 Sale of Equipment or Land - 105,000 39,000 - 144,000 Bond Proceeds - - - - - Transfers In 10,400 - 10,400 Total Revenue $ 14,0371076 $ 427,200 $2,686,821 $ 9,108,026 $26,259,123 Appropriations General Government $ 2,291,354 $ 323,970 $ - $ - $ 2,615,334 Police and Fire 6,989,682 - - - 6,989,682 Community Development 571,191 - - 571,191 Public Works 2,590,741 - - - 2,590,741 Recreation 1,594,098 - - 1,5941098 Capital Outlay - 90,000 3,008,500 - 3,0,98,500 Enterprise Funds - - 8,712,379 8,712,374 Economic Development Authority - - - - - Total Appropriations $ 14,037,076 $ 413,970 $3,00.8,500 $ 8,712,379 $26,171,925 Net Revenue Over (Under) Appropriations $ (0) $ 13,230 $ (321,679) $ 395,647 $ 87,198 BE IT FURTHER RESOLVED that the City Council of the City of Crystal, Hennepin County, Minnesota, that the following sums of money be levied for collection in 2018 upon the taxable property within the City of Crystal for the following purposes: 5.1 General Fund Tax Levy $9,436,779 Capital Improvements 1,191,110 Subtotal 10,627,889 * Housing and Redevelopment Levy 277,200 Total Levy to be certified $10,905,089 *Levy cannot exceed .0185% of estimated market value of all property located within the City of Crystal. And BE IT FURTHER RESOLVED that the City Clerk is hereby authorized and directed to transmit this information to the County Auditor of Hennepin County, Minnesota and the Minnesota Department of Revenue, if applicable, in the format requested as required by law. BE IT FURTHER RESOLVED that the property tax levy for the general Obligation Improvement Bonds Series 2015A are cancelled since there will be sufficient special assessment revenue to make the debt service payments. Adopted by the Crystal City Council this 51h day of December 2017. Adopted by the City Council December 5, 2017 Attest: City Clerk Mayor CITY of CRYSTAL Anneal Budget ri1p,40 � 44bb I nl atom oo� 5.1 TABLE of CONTENTS 2018 City of Crystal Budget Letter of Transmittal...........................................................................3 Organizational Chart..........................................................................4 Governing Body & Council Priorities...................................................5 BudgetOverview............................................................................6-7 Revenue Sources & Expenditures....................................................8 FundTypes....................................................................................9 TotalCity Budget.............................................................................10 General Fund - Revenues.............................................................11 General Fund - Expenditures........................................................1 Z Special Revenue Funds.................................................................13 Debt Service Funds.......................................................................14 Capital Project Funds.......................................................................15 Enterprise Funds.....................................................................16-17 Conclusion.............................................................................................. 18 2 1 Page 5.1 LETTER OF TRANSMITTAL CITY of CRYSTAL December 3, 2017 To the Honorable Mayor and City Council: We are pleased to submit the 2018 City Budget. The 2018 budget provides the City Council and residents with a balanced budget and a sound financial plan that maintains core services levels, while remaining responsive to the financial concerns of Crystal taxpayers. The 2018 budget reflects a 6.0% increase in the property tax levy from 2017. This increase will ensure the city can maintain service levels as the community deserves and invest in the capital needs an aging community requires. The budget is a comprehensive decision-making document based on current city operations, services and its policies and goals. Work began on the 2018 budget in April 2017 when the City Council met to determine priorities for 2018. The City Council held two additional work sessions to provide direction to a budget that maintains core services, is sensitive to tax impacts and of the following Council goals: 1. To create a thriving business climate 2. To develop fiscally sound and stable fnancial policies and practices 3. To create strong neighbohoods. Review and approval of the preliminary property tax levies and budget was held on September 7, 2017. A public input meeting was held on October 3, 2017 and the formal Truth in Taxation Public input session was held on December 5, 2017. Please contact me at 763-531-1140 or Jean McGann, Finance Director, at 763-531-1110 with any questions. Respectfully submitted, Anne Norris, City Manager 3 1 Page Organizational Chart Assist. City Manager/ HR Manager Human Resources Customer Service Assessing Communications Information Tech. Safety Programs Finance Director I— Payroll & Benefits Utility Billing A/R & A/P Cash Mgmt. Financial Reporting Insurance 4 1 Page Chief of Police Mayor & City Council (also serve as Crystal EDA) West Metro Fire - Rescue District (joint with City of New Hope) City Manager (EDA Executive Director) City Clerk Licenses City Records Elections Community Dev. Director (EDA Deputy Executive Director) Patrol Investigations Crime Prevention Evidence Civil Defense Records Unit Planning Code Enforcement Bldg. Inspections Redevelopment Env. Health City Attorney Public Works Director/ City Engineer Street & Park Maint. Utility Operations Engineering Forestry Building Maint. 5.1 Recreation Director Rec. Programming Building Scheduling Facility Rentals Pool / Waterslide 5.1 Governing Body Crystal operates as a home -rule charter city, which receives its enabling authority through the adoption of a city charter. The Crystal City Charter is the city's constitution, which provides for the type of government and outlines functions, structure, and procedures of city government. Crystal became a charter city in 1960. The City of Crystal has a Council -Manager form of government. Under this plan, the elected members of the council set the policies for the operation of the city. The council hires a professional city manager, who is responsible for the administration of all city business. The Crystal City Council consists of seven members: a mayor and six council members who are elected to alternating four-year terms. Elections are held in November during even -numbered years. Jim Adams Mayor Term Expries: July 31, 2020 Nancy LaRoche Olga Parsons Elizabeth Dahl Section I Section II Ward 1 A Expries: Term Expries: Term Expries: Term Ex p July 31, 2020 July 31, 2018 July 31, 2018 Jeff Kolb John Budziszewski Julie Deshler Ward 2 Ward 3 (Ward 4) Term Expries: Term Expries: Term Expries: July 31, 2018 July 31, 2020 July 31, 2020 Council Priorities To create a thriving business climate. To develop fiscally sound and stable financial policies and practices. To create strong neighborhoods. 5 1 Page Budget Overview The City of Crystal has developed a comprehensive budget that encompasses City Council goals, maintenance of current levels of services and investment in infrastructure. Property taxes support approximately 67% of the annual general fund budget and in order to meet the objectives above, the budget includes a 6% property tax increase. The 2018 Budget requires $14,037,076 for operations within the General Fund to continue at existing service levels and includes the best information available regarding inflationary factors, union contract settlements and anticipated maintenance and equipment needs. Each budget year is potentially impacted by inflation, state and local policy changes as well as the economy. The remainder of the budget document provides details about property taxes, property tax rates, property tax impacts to the community and details of each budget. Property taxes are levied for the purposes of providing services to the community, supporting capital needs and providing funding for the Economic Development Authority (EDA). The following information shows the property tax levy from 2015 — 2018. General levy Capital improvements levy Police Equipment Revolving PIR Major Building Replacement Street Maintenance Total Capital Improvement levy EDA 5.1 Increase % 2015 2016 2017 Levied 2018 Proposed (Decrease) Change $ 8,302,000 $ 8,571,947 $ 8,657,000 $ 9,436,779 $ 779,779 9.01 % 563,153 134,700 13 7, 400 151,900 14,500 10.55 261,000 266,220 301,210 34,990 13.14 563,153 574,400 574,400 - 0.00 160,307 163,600 163,600 - 0.00 1,119,160 1,141,620 1,191,110 49,490 4.34 239,000 246,200 277,200 277,200 0.00 Total levy $ 9,104,153 $ 9,937,307 $ 10,075,820 $ 10,905,089 829,269 8.23 Market value based referendum levy $ 209,000 $ 210,600 $ 212,000 $ - (212,000) (100.00) $ 9,313,153 $ 10,147,907 $ 10,287,820 $ 10,905,089 617,269 6.00 % 6 1 Page The following table summarizes the estimated tax impact on residential homes, based on the proposed increase in the city tax levy. 2017 Market Value of a Taxable 2018 $ Increase / Home Market Value 2017 Actual Estimated (decrease) $ 146,610 $ 122,600 $ 617 $ 642 $ 25 162,900 140,300 707 735 28 181,000 160,100 806 838 32 217,200 199,500 1,005 1,045 40 260,640 246,900 1,243 1,293 50 *The median home value per MLS listings is $180,575. The 2018 estimated tax represents values at, below and above the median value. 5.1 Increase / (decrease) 4% 4% 4% 4% 4% As budgets are being developed, it is important to review the history of taxes and intergovernmental revenue as this is the primary revenue source for the general fund. The graph below identifies taxes and intergovernmental revenue over the past 9 years. 7 1 Page The following information provides data to better understand where the General Fund (operating budget) is funded and how these resources are allocated. Revenue Sources Expenditures $10,000,000 $9,000,000 1 4, i—t $8,000,000 1 $ General government Public safety Community development $7,000,000 Recreation 2016 Actual $2,333,780 $6,091,495 $ 6,000,000 $2,256,907 $1,448,395 2017 Budget $2,383,046 $6,357,310 $5,000,000 $559,814 $2,451,239 $1,460,008 $4,000,000 $2,291,364 $6,989,682 $571,191 $2,590,741 $1,594,098 $3,000,000 $ 2,000,000 $1,000,000 $ Taxes and special assessments Intergovernme ntaI Charges and fees Other Transfers in 2016 Actual $8,100,043 $2,048,954 $1,888,580 $133,950 $332,886 2017 Budget $8,783,900 $1,973,909 $1,928,933 $79,200 $445,475 2018 Budget $9,337,559 1 $2,135,009 1 $1,978,979 1 $141,080 $444,449 Expenditures 5.1 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 1 4, i—t 1 $ General government Public safety Community development Public works Recreation 2016 Actual $2,333,780 $6,091,495 $523,035 $2,256,907 $1,448,395 2017 Budget $2,383,046 $6,357,310 $559,814 $2,451,239 $1,460,008 2018 Budget $2,291,364 $6,989,682 $571,191 $2,590,741 $1,594,098 5.1 5.1 Fund Types The City of Crystal classifies funds into six types: General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Enterprise Funds and Internal Service Funds. General Fund As the primary operating fund, the General Fund records all revenues and expenditures that are not assigned to another fund. The fund provides the resources to sustain the daily activities for administrative and operating expenses for general government, public safety, public works, recreation, and community development expenditures. The fund has more diverse revenue sources than other funds, including property taxes, licenses, permits, fines and forfeits, intergovernmental revenue (grants), service charges, and investment interest. The General Fund budget can be found on pages 11-12. Special Revenue Funds Certain activities are established or designated by statute, charter or ordinance with defined revenue sources for a specific and restricted purpose, such as tax increment financing. Funds included in this fund type are Tax Increment Financing Districts and the Economic Development Fund (EDA). Tax increment was first received in July 2000 and the last receipt is expected in December 2025 Increments must be spent on activities that promote the development and preservation of affordable housing. The city has one Tax Increment District: District 2155/ Heather Manor Apartments and The Heathers Assisted Living Facility at 2900 - 3000 Douglas Dr. N. Information about this fund can be found on page 13. Debt Service Funds Established to account for the payment (from special assessments and other sources) of interest and principal on long-term debt. The debt schedule and information regarding city bonds may be found on page 14. Capital Project Funds While Capital Project Funds are approved by the City Council on a project -by -project basis, the City has included the 2018 budgeted projects within this budget document. The use of these fund types are to account for the monies used for the acquisition and construction of capital projects. Capital Project Fund budgets can be found on page 15. Enterprise Funds Established to account for the acquisition, operation, and maintenance of activities that are self- supporting such as city water and sewer service, storm drainage, recycling and street lights. User fees predominantly support the operations of these funds. Enterprise fund budgets as well as user rate impacts can be found on pages 16-17. 9 1 Page Total City Budget The Total city budget as shown below is the combined budgets of all parts of the organization, including the Economic Development Authority (EDA). Revenue Property Taxes and Special Assessments Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Interest Income Miscellaneous Interfund Services Sale of Equipment or Land Bond Proceeds Transfers In Total Revenue Appropriations General Government Police and Fire Community Development Public Works Recreation Capital Outlay Enterprise Funds Economic Development Authority Total Appropriations 10 1 Page 5.1 Capital Enterprise Total Budget Total Budget Percent General Fund EDA Project Funds Funds 2018 2017 Change $ 9,603,779 $ 277,200 $ 1,375,680 $ 844,228 - - 1,868,789 1,114, 641 830,751 - 304,000 - 68,000 35,000 142,500 73,080 10,000 15,000 434,049 - - - 105,000 39,000 10,400 55,000 $ 11,311,659 $ 11,662,878 (3.01%) - 844,228 836,256 0.95% 1,000,000 3,983,430 3,573,909 11.46% 7,913,926 8,744,677 8,057,102 8.53% - 304,000 326,000 (6.75%) 43,600 289,100 217,375 33.00% 95,500 193,580 186,733 3.67% - 434,049 335,061 29.54% 144,000 100,000 44.00% - 3,625,697 (100.00%) 10,400 110,414 (90.58%) $ 14,037,076 $ 427,200 $ 2,686,821 $ 9,108,026 $ 26,259,123 $ 29,031,425 (9.55%) $ 2,291,364 $ 323,970 $ $ $ 2,615,334 $ 2,383,046 9.75% 6,989,682 - 6,989,682 6,357,310 9.95% 571,191 571,191 559,814 2.03% 2,590,741 2,590,741 2,451,239 5.69% 1,594,098 - 1,594,098 1,460,008 9.18% - 90,000 3,008,500 - 3,098,500 8,453,539 (63.35%) - - 8,712,379 8,712,379 7,015,313 24.19% - - 360,304 (100.00%) $ 14,037,076 $ 413,970 $ 3,008,500 $ 8,712,379 $ 26,171,925 $ 29,040,573 5.1 General Fund - Revenues The General Fund budget for 2018 reflects an overall increase in revenue and expenditures of 6.25%. Outlined below is a summary of budget revenues along with the major changes in 2018 revenue when compared to 2017. REVENUES Taxes Property taxes Special assessments and other Licenses and permits Intergovernmental revenues Charges for services Fines & forfeits Investment income Miscellaneous Interfund Services Transfers in TOTAL REVENUES Major changes in revenue 2015 2016 2017 2018 2017 to 2018 2017 to 2018 Increase Increase Actual Actual Budget Budget (Decrease) (Decrease) $ 8,262,652 $ 8,004,390 $ 8,669,000 $ 9,436,779 $ 767,779 8.86% 109,981 95,653 114,900 167,000 52,100 45.34% 808,695 773,479 836,256 844,228 7,972 0.95% 1,991,430 2,048,954 1,973,909 1,868,789 (105,120) (5.33%) 673,370 793,092 766,677 830,751 64,074 8.36% 309,358 322,009 326,000 304,000 (22,000) (6.75%) 48,167 75,154 60,000 68,000 8,000 13.33% 33,079 58,796 19,200 73,080 53,880 280.63% 308,213 332,886 335,061 434,049 98,988 29.54% - - 110,414 10,400 (100,014) N/A $ 12,544,945 $ 12,504,413 $ 13,211,417 $ 14,037,076 $ 825,659 6.25% Property tax increase projected at 8.86% due to reallocation of LGA Property tax - budgeted for delinquent collections Local Government Aid (LGA) reallocation Police - COPS grant Police - Drug Task Force Police - post board reimbursement per legislature Fines and forfeits reduced due to anticipated collections Investment income increased due to higher interest rates and change in liquidity policy Miscellaneous - budgeted for historical donations and other reimbursements Charges for services - pawn shop transaction fees Charges for services - pool passes Charges for services - city provided services for nuisance abatement activity Interfund services increased due to analysis of cost of services Transfers in - reduction due to one time transfer in 2017 Tax forfeit sales Miscellaneous increases Total increase in revenue $ 825,659 767,779 52,000 (266,220) 85,000 30,000 29,700 (22,000) 8,000 32,600 15,000 9,000 8,500 98,988 (100,014) 28,000 49,326 $ 825,659 11 1 Page 5.1 General Fund - Expenditures Outlined below is a summary of the budget expenditures along with the major changes in 2018 expenditures when compared to 2017. TOTAL EXPENDITURES $ 12,758,213 $ 12,653,612 $ 13,211,417 $ 14,037,076 $ 825,659 6.25% Major changes in expenditures $ 825,659 General Government Administration - web site update Elections - 2018 is election year Public Safety Police - wages and benefits for 2 officers funded with COPS grant approved after the adoption of the 2017 budget Police - Logis charges/body camera storage Police - post board reimbursement per legislature Fire - increase in capital cost and wage/benefit adjustment Public Works Parks - addition of Parks Maintenance employee General fund wages and benefits Miscellaneous increases Total increase in expenditures 12 1 Page 40,000 47,274 162,000 9,000 29,700 59,000 80,095 307,644 90,946 $ 825,659 2015 2016 2017 2018 2017 to 2018 2017 to 2018 Proposed Increase Increase Actual Actual Budget Budget (Decrease) (Decrease) EXPENDITURES General government Mayor and council $ 120,681 $ 149,261 $ 129,418 $ 134,941 $ 5,523 4.27% Administration 1,041,650 1,185,776 1,234,987 1,280,065 45,078 3.65% Human resources 43,949 46,519 52,179 52,291 112 0.21% Assessing 227,702 238,881 267,224 281,115 13,891 5.20% Legal 114,496 74,634 97,000 80,000 (17,000) (17.53%) Election 12,117 66,700 12,715 59,989 47,274 371.80% Finance 511,886 572,009 589,523 402,963 (186,560) (31.65%) Total general government 2,072,481 2,333,780 2,383,046 2,291,364 (91,682) (3.85%) Public safety Police 4,555,663 4,851,832 5,057,200 5,629,175 571,975 11.31% Fire 1,188,463 1,239,663 1,300,110 1,360,507 60,397 4.65% 5,744,125 6,091,495 6,357,310 6,989,682 632,372 9.95% Community Development Planning/Code Enforcement 164,785 96,230 83,178 83,299 121 0.15% Building Inspection 274,156 236,348 276,980 284,537 7,557 2.73% Housing Inspection 268,153 179,063 189,556 195,255 5,699 3.01% Health 29,719 11,394 10,100 8,100 (2,000) (19.80%) Total community development 736,814 523,035 559,814 571,191 11,377 2.03% Public works Engineering 396,143 374,945 395,773 401,823 6,050 1.53% Street Maintenance 854,952 901,641 968,134 969,510 1,376 0.14% Park Maintenance 736,415 722,790 823,150 950,531 127,381 15.47% Forestry 158,885 62,362 74,100 80,500 6,400 8.64% City Buildings 212,067 195,169 190,082 188,377 (1,705) (0.90%) Total public works 2,358,462 2,256,907 2,451,239 2,590,741 139,502 5.69% Recreation Recreation 731,737 801,155 770,361 916,730 146,369 19.00% Community Center 357,482 398,547 425,244 405,585 (19,659) (4.62%) Pool 237,119 248,693 264,403 271,783 7,380 2.79% 1,326,338 1,448,395 1,460,008 1,594,098 134,090 9.18% Other Financing Uses Transfers Out 519,994 - N/A 519,994 N/A TOTAL EXPENDITURES $ 12,758,213 $ 12,653,612 $ 13,211,417 $ 14,037,076 $ 825,659 6.25% Major changes in expenditures $ 825,659 General Government Administration - web site update Elections - 2018 is election year Public Safety Police - wages and benefits for 2 officers funded with COPS grant approved after the adoption of the 2017 budget Police - Logis charges/body camera storage Police - post board reimbursement per legislature Fire - increase in capital cost and wage/benefit adjustment Public Works Parks - addition of Parks Maintenance employee General fund wages and benefits Miscellaneous increases Total increase in expenditures 12 1 Page 40,000 47,274 162,000 9,000 29,700 59,000 80,095 307,644 90,946 $ 825,659 5.1 Special Revenue Funds The City has one remaining Tax Increment Financing District that is set to expire on December 2025. The City also has an Economic Development Authority (EDA). The EDA has the following priorities for 2018; BLR Streetscape bidding and construction, home improvement incentive rebates for households between 80% and 120% of metro area median income and the acquisition and demolition of one blighted house for redevelopment. Net Revenue Over (Under) Expenditures $ (139,368) $ 13,230 $ (126,138) 13 1 Page TIF #2155 (The Heathers) EDA Total Revenue Property taxes $ 180,000 $ 277,200 $ 457,200 Investment Income 15,000 35,000 50,000 Miscelleous - 10,000 10,000 Sale of land - 105,000 105,000 Total Revenues $ 195,000 $ 427,200 $ 622,200 Expenditures Personnel Services $ - $ 250,163 $ 250,163 Professional Services 3,300 33,000 36,300 Contractual Services 25,000 17,000 42,000 Home Imp Rebate Program 166,500 18,400 184,900 Utilities - 1,300 1,300 Miscellaneous 4,107 4,107 Capital outlay 90,000 90,000 Debt Service 139,568 139,568 Total Expenditures $ 334,368 $ 413,970 $ 748,338 Net Revenue Over (Under) Expenditures $ (139,368) $ 13,230 $ (126,138) 13 1 Page 5.1 Debt Service Funds The city sells bonds to raise revenue to finance large projects such as street reconstruction. The city issued the final bond in 2017 for the 16 phases of street reconstruction. The following table shows current obligations through the audited year of 2016. Unaudited Authorized Interest Balance Due DESCRIPTION Issue Maturity and Issued Rate 12/30/2017 2018 General Obligation Bonds 2013B Street Reconstruction 8/1/2014 2/1/2022 395,000 0% $ 85,940 $ 85,940 Total General Obligation Bonds $ 85,940 $ 85,940 General Obligation Special Assessment Bonds 2008A Special Assessment 8/1/2008 2/1/2024 2,190,000 3.50-4.35% $ 900,000 $ 140,000 2009A Special Assessment 7/21/2009 2/1/2030 3,360,000 2.00-4.50% 2,020,000 175,000 2011A Special Assessment 7/19/2011 2/1/2027 1,705,000 0.50-3.55% 1,030,000 120,000 2012A Special Assessment 7/16/2013 2/1/2028 2,635,000 0.50-3.55% 1,805,000 190,000 2013A Special Assessment 6/17/2015 2/1/2029 3,235,000 0.50-3.55% 2,525,000 240,000 2015A Special Assessment 7/16/2015 2/1/2031 2,550,000 2.50-3.00% 2,325,000 195,000 2016A Special Assessment 8/25/2016 2/1/2032 3,330,000 2.00-2.50% 3,330,000 280,000 2017A Street Reconstruction 9/14/2017 2/1/2033 4,665,000 2.00-3.00% 4,665,000 - Total General Obligation Special Assessment Bonds $ 18,600,000 $ 1,340,000 Total $ 18,685,940 $ 1,425,940 14 1 Page 5.1 Capital Project Funds Outlined below are the individual Capital Project funds. While projects are budgeted for a specific year there will be instances when a project may not be completed at year-end and roll into the following year. * Intergovernment revenue in the Street Construction fund consists of Municipal State Aid (MSA) 15 1 Page Street Street Major Police Maintenance Construction Building Revolving PIR Total REVENUES Property taxes and Special Assessments $ 236,600 $ 345,000 $ 574,400 $ 151,900 $ 334,000 $ 1,641,900 Intergovernmental revenue * - 200,000 - 3,000 645,421 848,421 Investment income 14,000 22,000 300 36,000 70,200 142,500 Miscellaneous - - - 15,000 15,000 Sale of equipment 15,000 24,000 39,000 TOTAL REVENUES $ 250,600 $ 567,000 $ 574,700 $ 220,900 $ 1,073,621 $ 2,686,821 EXPENDITURES Repairs and maintenance $ 750,000 $ $ - $ - $ 230,000 $ 980,000 Parks - 785,000 785,000 Improvements other than buildings 299,500 299,500 Machinery and equipment - 332,000 612,000 944,000 TOTAL EXPENDITURES $ 750,000 $ - $ $ 332,000 $ 1,926,500 $ 3,008,500 NET CHANGES IN FUND BALANCE $ (499,400) $ 567,000 $ 574,700 $ (111,100) $ (852,879) $ (321,679) FUND BALANCE JANUARY 1, 1,802,307 (78,448) 680,508 3,095,831 8,057,193 13,557,391 FUND BALANCE DECEMBER 31 $ 1,302,907 $ 488,552 $ 1,255,208 $ 2,984,731 $ 7,204,314 $ 13,235,712 * Intergovernment revenue in the Street Construction fund consists of Municipal State Aid (MSA) 15 1 Page 5.1 Enterprise Funds The city maintains five enterprise funds; water, sewer, storm drainage, recycling and street lights. For 2018, the city has approved rate increases as identified below for water, sewer and storm drainage. Recycling and street light rates remain consistent with 2017. Number of units in tier, 1,000 Price per Price per Rate Increase Water gallons per unit unit in 2017 unit in 2018 over prior year Tier #1 0-30 $ 5.50 $ 5.70 3.64% Tier #2 31-60 $ 5.90 $ 6.30 6.78% Tier #3 over 60 $ 6.30 $ 6.60 4.76% Rateincrease Sewer 2017 2018 over prior year Residential Rate/quarter $ 55.15 $ 61.22 11.01% Senior residential rate/quarter $ 44.67 $ 49.59 11.01% Rateincrease Storm Drainage 2017 2018 over prior year Single family homes $ 16.50 $ 18.15 10.00% Commercial - per acre $ 412.50 $ 435.88 5.67% Rateincrease 2017 2018 over prior year Street Lights residential or commercial $ 5.00 $ 5.00 0.00% Rate Rate increase 2017 2018 over prior year Recycling residential $ 10.75 $ 10.75 0.00% In developing the 2018 water, sewer and storm drainage budgets, there are several reasons cost factors driving the need to increase rates. Water — projected infrastructure improvements and inflationary costs Sewer — MCES disposal charges rate increase of 8.5% Storm Drainage — projected infrastructure improvements and inflationary costs Operations of the utility funds in 2018 are designed to maintain the infrastructure and level of service that Crystal residents have been receiving. The staff annually updates a five-year utility rate study reviewing operations and capital needs. The City of Crystal receives its water supply through a Joint Water Commission (JWC) with the cities of Golden Valley and New Hope. The JWC purchases water in a contract with the City of Minneapolis. The Water, Sanitary Sewer and Strom Drainage funds plan for significant capital projects over the next five years. These are needed to replace aging infrastructure and expand the storm drainage system to areas of the city that are under served. 16 1 Page Sewer Water 2017 2017 Percent of 2018 Budget Operating Revenues Operating revenue $ 2,231,005 100 % Non-operating revenue 70,300 3 Total revenue $ 2,301,305 103 Operating expenses 1,963,587 88 Depreciation 157,895 7 Capital improvements - - Transfer out 140,188 6 Total expense 2,261,670 101 Net revenue/(expenses) $ 39,635 2 Water 2017 2017 Percent Budget of Revenues Operating revenue $ 190,000 6 % Non-operating revenue 13,200 Total revenue $ 203,200 6 Operating expenses 149,339 4 % Depreciation 33,217 1 Transfer to other funds 10,657 Total expense 193.213 6 % 2017 2017 Percent of 2018 Budget Operating Revenues Operating revenue $ 3,421,120 100 %. Non-operating revenue 235,500 7 Total revenue $ 3,656,620 107 Operating expenses 2,954,618 86 % Depreciation 229,784 7 Capital improvements - - Interest 9,600 - Transferto otherfunds 140,188 4 Total expense 3,334,190 97 % Net revenue/(expenses) $ 322,430 9 2017 2017 Percent Budget of Revenues Operating revenue $ 190,000 6 % Non-operating revenue 13,200 Total revenue $ 203,200 6 Operating expenses 149,339 4 % Depreciation 33,217 1 Transfer to other funds 10,657 Total expense 193.213 6 % Storm Drair 2018 2017 2017 Percent Budget Budget of Revenues Operating revenue $ 936,000 100 % Non-operating revenue 17,400 2 Total revenue $ 953,400 102 Operating expenses 369,792 40 % Depreciation 365,787 39 Capital improvements - - Transferto otherfunds 105,723 11 Total expense 841,302 90 % Net revenue/(expenses) $ 112,098 12 $ 314,033 9 Street Lief 2017 2017 Percent Budget of Revenues Operating revenue $ 190,000 6 % Non-operating revenue 13,200 Total revenue $ 203,200 6 Operating expenses 149,339 4 % Depreciation 33,217 1 Transfer to other funds 10,657 Total expense 193.213 6 % Recycling Favorable 2017 2017 Percent 2018 2018 Percent (Unfavorable) Budget of Revenues Budget of Revenues Variance Operating Revenue $ 378,300 100 % $ 392,974 100 % $ 14,674 Non-operating revenue 7,300 2 6,900 2 Total revenue $ 385,600 102 $ 392,974 100 $ 14,674 Operating expenses 378,604 100 % 392,974 100 14,370 Transfer to otherfunds 6,334 2 8,168 2 1,834 Total expense 384,938 102 401,142 16,204 Net revenue/(expenses) $ 662 % $ (8,168) (2) $ (1,530) 5.1 17 1 Page Favorable 2018 2018 Percent of (Unfavorable) Budget Operating Revenues Variance $ 2,429,179 100 % $ 198,174 66,300 3 (4,000) $ 2,495,479 103 $ 194,174 2,165,290 89 201,703 162,200 7 4,305 290,000 12 290,000 181,604 7 41,416 2,799,094 115 537,424 $ (303,615) (12) $ (343,250) Recycling Favorable 2017 2017 Percent 2018 2018 Percent (Unfavorable) Budget of Revenues Budget of Revenues Variance Operating Revenue $ 378,300 100 % $ 392,974 100 % $ 14,674 Non-operating revenue 7,300 2 6,900 2 Total revenue $ 385,600 102 $ 392,974 100 $ 14,674 Operating expenses 378,604 100 % 392,974 100 14,370 Transfer to otherfunds 6,334 2 8,168 2 1,834 Total expense 384,938 102 401,142 16,204 Net revenue/(expenses) $ 662 % $ (8,168) (2) $ (1,530) 5.1 17 1 Page Favorable 2018 2018 Percent of (Unfavorable) Budget Operating Revenues Variance $ 3,589,823 100 % $ 168,703 225,500 6 (10,000) $ 3,815,323 106 $ 158,703 3,029,319 84 % 74,701 232,367 6 2,583 50,000 1 50,000 8,000 - (1,600) 181,604 5 41,416 3,501,290 98 % 167,100 $ 314,033 9 $ (8,397) Recycling Favorable 2017 2017 Percent 2018 2018 Percent (Unfavorable) Budget of Revenues Budget of Revenues Variance Operating Revenue $ 378,300 100 % $ 392,974 100 % $ 14,674 Non-operating revenue 7,300 2 6,900 2 Total revenue $ 385,600 102 $ 392,974 100 $ 14,674 Operating expenses 378,604 100 % 392,974 100 14,370 Transfer to otherfunds 6,334 2 8,168 2 1,834 Total expense 384,938 102 401,142 16,204 Net revenue/(expenses) $ 662 % $ (8,168) (2) $ (1,530) 5.1 17 1 Page Favorable 2018 2018 Percent (Unfavorable) Budget of Revenues Variance $ 1,179,750 100 % $ 243,750 1,016,000 86 998,600 $ 2,195,750 186 $ 1,242,350 423,024 36 % 53,232 366,792 31 1,005 1,000,000 85 1,000,000 48,868 4 (56,855) 1,838,684 156 % 997,382 $ 357,066 30 $ 244,968 Recycling Favorable 2017 2017 Percent 2018 2018 Percent (Unfavorable) Budget of Revenues Budget of Revenues Variance Operating Revenue $ 378,300 100 % $ 392,974 100 % $ 14,674 Non-operating revenue 7,300 2 6,900 2 Total revenue $ 385,600 102 $ 392,974 100 $ 14,674 Operating expenses 378,604 100 % 392,974 100 14,370 Transfer to otherfunds 6,334 2 8,168 2 1,834 Total expense 384,938 102 401,142 16,204 Net revenue/(expenses) $ 662 % $ (8,168) (2) $ (1,530) 5.1 17 1 Page Favorable 2018 2018 Percent (Unfavorable) Budget of Revenues Variance $ 190,000 5 % $ - 11,600 (1,600) $ 201,600 6 $ (1,600) 125,145 3 % (24,194) 33,218 1 1 13,805 3,148 172.168 5 % (21.045) Recycling Favorable 2017 2017 Percent 2018 2018 Percent (Unfavorable) Budget of Revenues Budget of Revenues Variance Operating Revenue $ 378,300 100 % $ 392,974 100 % $ 14,674 Non-operating revenue 7,300 2 6,900 2 Total revenue $ 385,600 102 $ 392,974 100 $ 14,674 Operating expenses 378,604 100 % 392,974 100 14,370 Transfer to otherfunds 6,334 2 8,168 2 1,834 Total expense 384,938 102 401,142 16,204 Net revenue/(expenses) $ 662 % $ (8,168) (2) $ (1,530) 5.1 17 1 Page 5.1 Conclusion The 2018 budget responds to City Council goals and is structured to provide services at consistent levels. Activities specific to the 2018 budget include: The addition of two police officers with the assistance of a federal COPS grant. Additional and updated technology including implementation of body cameras for police officers and updating the city's website. State and local elections. The City Council and staff will be undertaking development of a comprehensive long range financial plan for capital needs including parks, buildings, infrastructure, vehicles and major equipment. This document is intended to provide an overview of the city's programs and services. Supplemental line item budgets can be obtained from the Finance Department. 18 1 Page 6.1 DATE: November 28, 2017 TO: Anne Norris, City Manager CITY of City of Crystal City Council CRYSTAL FROM: Jean McGann, Acting Finance Director RE: Expenditures over $25,000 Payee Description Amount Big -D Construction Corp New Public Works facility services for August - October $31,606.01 Healthpartners, Inc December 2017 health insurance premiums $95,546.50 IRS - EFTPS Federal & FICA withholding taxes for 11/17/2017 pay date $58,346.76 Metropolitian Council Environ Sery Wastewater service costs for December $117,029.76 Palda & Sons, Inc Phase 16 street reconstruction services for October $563,018.36 PERA Employee and city required contributions for 11/17/17 pay date $51,992.83 SEH INC Phase 16 engineering services for October $64,638.42 $982,178.64 1:\COUNCIL\000 Packet in Progress\Checks over $25.000 Memo 6.2 Memorandum CITY of CRYSTAL DATE: December 5, 2017 TO: City Council FROM: Mark Ray, PE, Public Works Director SUBJECT: 800mhz radios for Public Works Background The 2018 PIR includes the replacement of the existing 800mhz radios for public works staff. Similar to police and fire, Hennepin County has notified us that they are phasing out the current models of 800mhz radios and will no longer be supporting them after 2019. To avoid potential issues with trying to get the new radios programmed when other agencies are rushing to replace them in 2019, it was proposed to replace the radios in 2018. The 800mhz radios are used to communicate within public works, with police and fire, as well as neighboring public works departments, Hennepin County public works, and getting weather alerts. In a major event or emergency, the radios have the capability to connect with a wide variety of users. When determining the number of radios needed, the controlling factor was a full snowplow event and making sure all operators have a radio. Public works will be purchasing the following radios: A) 15 portable radios for public works staff B) 3 portable radios with encryption to allow supervisor communication with police C) 1 fixed radio to be mounted in the vehicle maintenance shop The radios will be purchased off of the state contract. In working with the vendor, they have informed us of a rebate program of $500 off per portable radio that expires December 15, 2017. The value of this rebate is $9,000. Due to the cost of the radios and value of this rebate, and it being unknown if there will be a future rebate, staff is recommending moving forward with this purchase. After the rebate, the cost for the radios and associated equipment is $48,748.82. The budget has $55,000 allocated in 2018 for the purchase. Attachment • Motolorola Solutions quote Recommended Action Motion to approve the resolution authorizing the purchase of the 800mhz radios from Motorola. Quote Number: QU0000422379 6.2 MOTOR -OLA SOLUTfONS Effective: 21 NOV 2017 Effective To: 20 JAN 2018 Bill -To: Ultimate Destination: CRYSTAL POLICE DEPARTMENT CRYSTAL PUBLIC WORKS 4141 DOUGLAS DR N 4141 DOUGLAS DRIVE NORTH CRYSTAL, MN 55422 CRYSTAL, MN 55422 United States United States Attention: Description Sales Contact: Name: Mark Ray Extended Price Name: Randy Beach Email: Mark.Ray@crystalmn.gov Email: randy.beach@ancom.org Phone: 763-531-1160 $1,429.50 Phone: 763-428-7884 Request For Quote: 18 APX4000 Model 2.0 Portable and 1 APX4500 02 Dash Mount Radio Contract Number: MINNESOTA DOT Freight terms: FOB Destination QA04865AA Payment terms: Net 30 Due - Item Quantity Nomenclature Description List price Your price Extended Price 1 15 H51UCF9PW6AN APX 4000 7/800 MHZ MODEL 2 $1,963.00 $1,429.50 $21,442.50 PORTABLE 1 a 15 QA04865AA ADD: TWO KNOB CONFIGURATION - - lb 15 H885BK ADD: 3 YEAR SERVICE FROM THE $90.00 $84.00 $1,260.00 START LITE lc 15 QA02756AB ENH: 3600 OR 9600 TRUNKING BAUD $1,570.00 $1,177.50 $17,662.50 SIN I 15 H122BV ALT: 1/4- WAVE 7/800 STUBBY $24.00 $18.00 $270.00 (NAR659 I e 15 QA01648AA ADD: ADVANCED SYSTEM KEY - $5.00 $3.75 $56.25 HARDWARE KEY 2 3 H51UCF9PW6AN APX 4000 7/800 MHZ MODEL 2 $1,963.00 $1,429.50 $4,288.50 PORTABLE 2a 3 H869CE ENH: MULTIKEY $330.00 $247.50 $742.50 2b 3 Q625AX ENH: DES,DES-XL,DES-OFB $599.00 $449.25 $1,347.75 ENCRYPTION 2c 3 QA04865AA ADD: TWO KNOB CONFIGURATION - - - 2d 3 H885BK ADD: 3 YEAR SERVICE FROM THE $90.00 $84.00 $252.00 START LITE 2e 3 QA02756AB ENH: 3600 OR 9600 TRUNKING BAUD $1,570.00 $1,177.50 $3,532.50 SIN 2f 3 H122BV ALT: 1/4- WAVE 7/800 STUBBY $24.00 $18.00 $54.00 (NAR659 2g 3 QA01648AA ADD: ADVANCED SYSTEM KEY - $5.00 $3.75 $11.25 HARDWARE KEY 3 1 M22URS9PW1AN APX45007/800 $1,564.00 $1,128.00 $1,128.00 3a 1 W22BA ADD: STD PALM MICROPHONE APEX $72.00 $54.00 $54.00 3b I G66AW ADD: DASH MOUNT 02 WWM $125.00 $93.75 $93.75 3c 1 QA01648AA ADD: ADVANCED SYSTEM KEY - $5.00 $3.75 $3.75 HARDWARE KEY 3d I G89AC ADD: NO RF ANTENNA NEEDED - - - 3e 1 G625AP ADD: DES/DES-XL/DES-OFB $599.00 $449.25 $449.25 ENCRYPTION 3f 1 W969BM ADD: MULTIKEY $330.00 $247.50 $247.50 3g 1 G24AX ADD: 3 YEAR SERVICE FROM THE $131.00 $131.00 $131.00 START LITE 3h 1 QA02756AD ADD: 3600 OR 9600 TRUNKING BAUD $1,570.00 $1,177.50 $1,177.50 SINGLE SYSTEM 3i 1 GA00804AA ADD: APX 02 CONTROL HEAD (Grey) $492.00 $369.00 $369.00 3j 1 G444AH ADD: APX CONTROL HEAD - - - SOFTWARE 3k 1 G142AD ADD: NO SPEAKER NEEDED 31 1 GA00235AA ADD: NO GPS ANTENNA NEEDED - - 4 18 PMMN4069A MICROPHONE,IMPRES RSM, 3.5MM $121.00 $90.75 $1,633.50 JACK, IP55 6.2 Item Quantity Nomenclature Description List price Your price Extended Price 5 3 PMPN4174A CHGR DESKTOP SINGLE UNIT $69.25 $51.94 $155.82 IMPRES, US/NA 6 3 PMPN4284A CHARGER DESKTOP MULTI -UNIT $595.00 $446.25 $1,338.75 IMPRES 2 1 DISPLAY EXT PS 100-240VAC US/NA 7 3 NLN7967A MULTI -UNIT CHARGER WALL $21.00 $15.75 $47.25 MOUNT KIT Total Quote in USD $57,748.82 System ID 740F - APX4000 $500.00 Off Trade In Promo To Apply thru 12-15-2017 - Programming by HCTY - Other Accessories by ANCOM - Thank you for your order!! Randy Beach - ANCOM THIS QUOTE IS BASED ON THE FOLLOWING: 1 This quotation is provided to you for information purposes only and is not intended to be an offer or a binding proposal. If you wish to purchase the quoted products, Motorola Solutions, Inc. ("Motorola") will be pleased to provide you with our standard terms and conditions of sale (which will include the capitalized provisions below), or alternatively, receive your purchase order which will be acknowledged. Thank you for your consideration of Motorola products. Quotes are exclusive of all installation and programming charges (unless expressly stated) and all applicable taxes. Purchaser will be responsible for shipping costs, which will be added to the invoice. Prices quoted are valid for thirty(30) days from the date of this quote. Unless otherwise stated, payment will be due within thirty days after invoice. Invoicing will occur concurrently with shipping. MOTOROLA DISCLAIMS ALL OTHER WARRANTIES WITH RESPECT TO THE ORDERED PRODUCTS, EXPRESS OR IMPLIED INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. MOTOROLA'S TOTAL LIABILITY ARISING FROM THE ORDERED PRODUCTS WILL BE LIMITED TO THE PURCHASE PRICE OF THE PRODUCTS WITH RESPECT TO WHICH LOSSES OR DAMAGES ARE CLAIMED. IN NO EVENT WILL MOTOROLA BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES. 6.2 RESOLUTION NO. 2017 - APPROVING THE PURCHASE OF 80OMHZ RADIOS WHEREAS, the Crystal City Council is committed to providing and maintaining quality infrastructure that is essential for everyday residential, commercial, industrial, and recreational activities in the City; and WHEREAS, reliable and efficient communications between City public works staff and other partners is essential for operations and public safety; and WHEREAS, the existing 800mhz radio system is no longer going to be supported by Hennepin County; and WHEREAS, adequate funds are allocated in the equipment fund for this purchase; NOW, THEREFORE, BE IT RESOLVED that the Crystal City Council hereby approves the purchase of 800mhz radios from Motorola Solutions. Adopted by the Crystal City Council this 5th day of December 2017. Jim Adams, Mayor ATTEST: Christina Serres, City Clerk 6.3 CRW' VOL" "PARS "Service with Compassion and Integrity" TO: Mayor and Council Members FROM: Stephanie K. Revering, Chief of Police CC: Anne Norris, City Manager DATE: December 1, 2017 SUBJECT: POLICE EQUIPMENT REVOLVING FUND MEMORANDUM Background The 2018 PERF includes the replacement of the existing 800mhz radios for police staff. Hennepin County has notified us they are phasing out the current models of radios (both mobile and portable) and will no longer be supporting them after 2019. Our initial plan was to purchase half of the radios in early 2018 and the other half in early 2019. The 800mhz radios are used to communicate within the police department, public works, fire department, Hennepin County Dispatch, as well as other public safety agencies. Over the last few years, we have been upgrading our mobile radios through attrition and will need to upgrade 4 mobile radios. However, our entire fleet of portable radios will no longer be supported by Hennepin County Radio so we will need to purchase 44 portable radios. The radios will be purchased off of the state contract. In working with our vendor, they have informed us of a sale that expires on December 15, 2017. The value of this sale if we took advantage of it now would be $30,500 (meaning that we would receive additional items to the radio that is necessary for its use). Due to this cost savings, staff is recommending moving forward with this purchase and we have the funds in the Police Equipment Revolving Fund (PERF). As always, please let me know if you have any questions. Thanks. RESOLUTION NO. 2017 - RESOLUTION APPROVING POLICE EQUIPMENT REVOLVING FUND EXPENDITURE FOR PURCHASE OF 44 PORTABLE RADIO UNITS AND OTHER NECESSARY EQUIPEMENT FOR INSTALLATION PURPOSES WHEREAS, the City Manager's office has received and recommends approval of said appropriations, and WHEREAS, adequate funds are allocated in the police equipment revolving fund for this purchase; and WHEREAS, the City Council hereby acknowledges: 1. The portable radio units will be utilized by Police Officers/Community Service Officers for reliable and efficient communications between police staff and other partners is essential for operations and public safety. 2. The most suitable source of funding is the Police Equipment Revolving Fund. WHEREAS, the City has an independent quote from Motorola Solutions for the purchase of 44 portable radio units and necessary equipment for installation NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CRYSTAL hereby accepts the independent bid quote and appropriates monies from the Police Equipment Revolving Fund for the purchase of the Motorola Mobile Radio Units for Law Enforcement Purposes. Cost to include purchase of the 44 portable radio units at $4,225.00 a unit as well as necessary installation of accessory equipment not to exceed $190,000. Adopted by the Crystal City Council this 5t' day of December 2017. Jim Adams, Mayor ATTEST: Chrissy Serres, City Clerk 6.3 RESOLUTION NO. 2017 - RESOLUTION APPROVING POLICE EQUIPMENT REVOLVING FUND EXPENDITURE FOR PURCHASE OF 4 MOBILE RADIO UNITS AND OTHER NECESSARY EQUIPEMENT FOR INSTALLATION PURPOSES WHEREAS, the City Manager's office has received and recommends approval of said appropriations, and WHEREAS, adequate funds are allocated in the police equipment revolving fund for this purchase; and WHEREAS, the City Council hereby acknowledges: 1. The mobile radio units will be utilized by Police Officers/Community Service Officers for reliable and efficient communications between police staff and other partners is essential for operations and public safety. 2. The most suitable source of funding is the Police Equipment Revolving Fund. WHEREAS, the City has an independent quote from Motorola Solutions for the purchase of 4 mobile radio units and necessary equipment for installation NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CRYSTAL hereby accepts the independent bid quote and appropriates monies from the Police Equipment Revolving Fund for the purchase of the Motorola Mobile Radio Units for Law Enforcement Purposes. Cost to include purchase of the 4 mobile radio units at approximately $3,900 a unit as well as necessary installation of accessory equipment not to exceed $20,000. Adopted by the Crystal City Council this 5t' day of December 2017. Jim Adams, Mayor ATTEST: Chrissy Serres, City Clerk 6.3 6.4 Memorandum 4:w nF f:l£Y41'iil. DATE: November 30, 2017 TO: Mayor and City Council FROM: Anne Norris, City Manager SUBJECT: Advisory Commission Appointments BACKGROUND: Crystal Resolution #2016-163 (attached) established a process for recruiting and interviewing candidates for advisory commissions, boards and task forces. Consistent with the process, the City Council interviewed candidates for appointment and reappointment at its November 9 work session. RECOMMENDATION: Recommend the appointment of the following candidates to the following commissions, boards and task forces. The appointments to the watersheds and West Metro Fire - Rescue Board are done by resolution and these resolutions are attached. COMMUNITY OUTREACH TASK FORCE Kayla Pascoe EMPLOYEE REVIEW BOARD Tim Daly — Regular member reappointment — term to expire 12/31/20 Patrick Rosenquist — Alternate member appointment — term to expire 12/31/20 ENVIRONMENTAL QUALITY COMMISSION Breeka Li Goodlander - Appointment — term to expire 12/31/20 Regina Small - Appointment — term to expire 12/31/20 PARKS & REC. COMMISSION Meredith Torres -Walsh - Reappointment — At -large 3 -year term to expire 12/31/20 Erin Kolb - Reappointment —Ward 2 3 -year term to expire 12/31/20 Tiffany Kovaleski - Appointment — Ward 4 position to expire 12/31/18 Patrick Rosenquist - Appointment — At -large position to expire 12/31/20 PLANNING COMMISSION Joseph Sears - Reappointment — Ward 1 3 -year term to expire 12/31/20 Joseph Selton, Jr.- Reappointment — Ward 2 3 -year term to expire 12/31/20 6.4 Timothy Buck — Reappointment — Ward 3 3 -year term to expire 12/31/20 Carolyn Maristany — Appointment — Ward 3 3 -year term to expire 12/31/20 BASSETT CREEK WATERSHED Guy Mueller - Regular Representative Reappointment — term to expire 1/31/21 SHINGLE CREEK WATERSHED Burt Orred - Regular Representative Reappointment — term to expire 1/31/21 WEST METRO FIRE -RESCUE DISTRICT BOARD Mary Serie - Citizen Representative Reappointment — term to expire 12/31/19 Attach: 6.4 CITY OF CRYSTAL MINNESOTA RESOLUTION NO. 2016 -163 RESOLUTION ESTABLISHING A PROCESS FOR ACCEPTING APPLICATIONS AND INTERVIEWING APPLICANTS TO COMMISSIONS AND BOARDS WHEREAS, the City Council has, pursuant to the City Code and City Charter, created various commissions and boards to assist the City Council in conducting the business of the City; WHEREAS, Section 305.13, subd. 4 of the Crystal City Code requires the City Council to establish, by resolution, a process for accepting applications and interviewing applicants to commissions and boards; WHEREAS, the process established herein only applies to the selection of members for commission and boards, it does not apply to the selection of members to task forces created by the City Council; and WHEREAS, the City Council has determined that an orderly process for accepting applications and interviewing applicants to commissions and board is needed to find the most qualified individuals to serve on the City's commissions and boards. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Crystal, adopts the following process for accepting applications and interviewing applicants to City commissions and Boards: Notice of Positions. The City Manager shall provide the City Council a list of all commission and board positions that are open for appointment in advance of advertising for applications. The list shall include a proposed application deadline. 2. Advertisement. City staff shall prepare and post on the City's website and at City Hall a notice of open commission and board positions and indicate the deadline for receiving applications. The notice shall be posted at least 45 days prior to the application deadline. Notice of the open positions may also be published in the City's official newspaper. 3. Eli ibili . All applicants for a commission or board must be residents of the City. The notice of open positions shall identify any other qualifications for applicants interested in serving on a particular commission or board. 4. Application. City staff shall prepare and make available to the public the application form that must be completed and submitted to the City prior to the established application deadline. The City may reject any incomplete applications. The City Manager shall notify the City Council of the applications received. 4860650 KRH CR205-30 5. Interviews. The City Manager shall work with the City Council to identify the applicants to be interviewed and to schedule and conduct the interviews. The City Council shall conduct interviews at least once annually for all open positions. 6. Selection. The City Council shall appoint members to commissions and boards by a majority vote at a City Council meeting. Those selected shall serve in accordance with Section 305 of the Crystal City Code and the ordinance adopted to create the commission or board. Adopted this 20th day of December, 2016. BY THE CITY COUNCIL Jim Adams, Mayor ATTEST: Chrissy Serres, City Clerk 4860650 KRH CR205-30 6.4 6.4 CITY OF CRYSTAL RESOLUTION NO. 2017 - RESOLUTION APPOINTING REPRESENTATIVE TO THE BASSETT CREEK WATERSHED MANAGEMENT ORGANIZATION WHEREAS, the City of Crystal is a member of the Bassett Creek Watershed Management Organization (BCWMO); and WHEREAS, the BCWMO has been organized under Minnesota Statutes to manage the storm waters of cities whose boundaries fall within the water management area; and WHEREAS, the City of Crystal has adopted a Joint Powers Agreement with the BCWMO and appoints citizen representatives therein; WHEREAS, it is in the best interest of the City of Crystal to appoint citizen representatives to the BCWMO. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Crystal, Minnesota, that Guy Mueller is hereby reappointed as the Crystal representative to the BCWMO for a three-year term expiring January 31, 2021. Adopted by the City Council of the City of Crystal this 5th day of December, 2017. Jim Adams, Mayor ATTEST: Christina Serres, City Clerk 6.4 CITY OF CRYSTAL RESOLUTION NO. 2017 - RESOLUTION APPOINTING REPRESENTATIVE TO THE SHINGLE CREEK WATERSHED MANAGEMENT ORGANIZATION WHEREAS, the City of Crystal is a member of the Shingle Creek Watershed Management Organization (SCWMO); and WHEREAS, the SCWMO has been organized under Minnesota Statutes to manage the storm waters of cities whose boundaries fall within the water management area; and WHEREAS, the City of Crystal has adopted a Joint Powers Agreement with the SCWMO and appoints citizen representatives therein; WHEREAS, it is in the best interest of the City of Crystal to appoint citizen representatives to the SCWMO. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Crystal, Minnesota, that Burt Orred is hereby reappointed as the Crystal representative to the SCWMO for a three-year term expiring January 31, 2021. Adopted by the City Council of the City of Crystal this 5th day of December, 2017. Jim Adams, Mayor ATTEST: Christina Serres, City Clerk CITY OF CRYSTAL RESOLUTION NO. 2017 - APPOINTING A CITIZEN REPRESENTATIVE TO THE BOARD OF DIRECTORS FOR THE WEST METRO FIRE -RESCUE DISTRICT WHEREAS, in 1997 the cities of Crystal and New Hope approved a Joint and Cooperative Agreement to consolidate all aspects of their fire safety programs and created the West Metro Fire -Rescue District, and WHEREAS, in accordance with Article IV of the Joint and Cooperative Agreement, Crystal -New Hope Joint Fire District, members are to be appointed by Council resolution, and WHEREAS, the term of Crystal's Citizen Representative Mary Serie expires December 31, 2017. NOW, THEREFORE, BE IT RESOLVED that the Crystal City Council approves the reappointment of Crystal's Citizen Representative Mary Serie as a member of the West Metro Fire -Rescue District's Board of Directors for a two-year term, effective January 1, 2018 — December 31, 2019. ADOPTED by the Crystal City Council this 5th day of December, 2017, Jim Adams, Mayor ATTEST: Christina Serres, City Clerk 6.4 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 CITY of Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov CRYSTAIL, Posted: Dec. 1, 2017 City Council Second Work Session Agenda Dec. 5, 2017 Following the City Council meeting Conference Room A Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the second work session of the Crystal City Council was held at p.m. on Dec. 5, 2017 in Conference Room A, 4141 Douglas Dr. N., Crystal, Minnesota. I. Attendance Council Members Staff Parsons Norris Adams Therres Budziszewski Gilchrist Dahl Elholm Deshler Ray Kolb Revering LaRoche Serres II. Agenda The purpose of the work session is to discuss the following agenda items: 1. Shared recreational facilities 2. Constituent issues update 3. New business* 4. Announcements* * Denotes no supporting information included in the packet. III. Adjournment The work session adjourned at p.m. Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763) 531- 1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529. Memorandum ory of CRYSTAL DATE: November 29, 2017 TO: Mayor and City Council FROM: Anne Norris, City Manager SUBJECT: Potential for Shared Recreational Facilities New Hope is in the process of discussing building a new municipal complex, including a new city hall with police station and a new swimming pool. Crystal and New Hope have a long history of offering joint pool passes and recreation programming. Several council members have discussed the potential for shared recreational facilities to save on long term capital costs for both cities. The Council should discuss its interest in whether to pursue this. The New Hope City Council will soon be considering bids for the first phase of construction of its municipal complex, including construction of a new city hall and demolition of the pool. Open Issues (JIRA) Open Issues (JIRA) Status: In Progress, New Issue Sorted by: Key descending 1-5 of 5 as at: 11/30/17 1:13 PM T Key Summary Created CRCI-71 Cyclocross Damage at Valley Place Park Anne Norris CRCI-70 Request for no parking signs on Louisiana between 35th and Valley 11122/17 Anne Norris Place a= CRCI-69 Litter in EDA parking lots Is CRCI-67 36th and Welcome a CRCI-63 30XX Winnetka Page 1 of 1 Assignee Reporter Status Created Updated Anne Norris Anne Norris NEW ISSUE 11/22117 11122/17 Anne Norris Anne Norris NEW ISSUE 11/22117 11122117 Anne Norris Anne Norris NF-WISSUEE 08/21117 08/22/17 Anne Norris Anne Norris NEWISSUE 08/.21117 11102117 Anne Norris Anne Norris NEW IS8LPE 06/12117 11102/17 https:Hcrystalmn.atlassian.net/sr/j ira.issueviews:searchrequest-printable/ l 0001lSearchRequest- 10001.html?tempMax=1000 11130/201.7 CIT' w ff@-IIM F rQ I 74.r Crystal Home Sale Prices - Ten Year History 1 $444,400 $350,004 $300,000 $250,000 $244,444 $150,000 $144,000 1 $50,000 $0 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I l i I;I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I -- ----1--a---k-4--4---1- 4---1-4--- -- --a--- k -a--- -- -- -- --a--- -- -- ----a---k-4--4---1-4---k-4--- -- -- --E-- --- -- _-�- 1I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I. 1.•.I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I,I I •I•I'•I I I I I• I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I' I I 'I I I I �1 :I•"J -- �--T 7 ----- � F-777 -- -- --- FT -- ---� -- -- -- -- ---� -- ---r-- -- --- � -- �--T --� -- --- � -- T T--1-77 --i-7 r - . --F 1- of %a _ - I I I I I I I I I I J' .I' I I I I I .1 1' 1 1 -1 '.1 'E I .I'II.,I.' 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C O O O d CO O O O O M O O O C C O C O O O N_ N_ N_ N_ N N N_ N_ N_ N N_ N_ N_ N N_ N_ N_ N_ N_ N_ N_ N_ _N N_ N_ N_ N_ N_ N_ _N N_ N_ N _N N N N N_ N_ N_ N_J14r T r T O C] T r O T T r r T T N T T T T C? r r T T T T N r T N N r T T r T T N OMarket values determine how much of the property tax "pie" is allocated to each property. • Residential Homestead, Non -Homestead and Apartment property values are increasing which means they make up more of the property tax pie • Commercial/Industrial property values are flat which means they make up less of the property tax pie OThe following maps are intended to show the effect of market value changes and levy amounts • Other factors such as changes in classification or valuation increases related to construction are excluded OThe maps show that the effects of valuations and levies on 2018 property taxes are generally: • A continuation of the 2015-2017 trend • The opposite of the 2011-2015 trend • It takes 2-3 years for market changes to affect property taxes. • The housing market began deflating in 2007 then bounced along the bottom from 2009-2012. • As residential values declined, taxes shifted to apartments and commercial/industrial property. • Residential areas that saw a larger decline in home values also saw a larger tax decrease in 2011-2015. RESIDENTIAL NON -APARTMENT, HOMESTEAD FOUR YEAR PROPERTY TAX CHANGE, 2011-2015 BASED ON 2015 TRUTH IN TAXATION STATEMENTS -L�.._�1 1, � �'•. ■1 _i .. � z i ■1 �aIN i u r el � o.aa.a a,rer 1ari 82.1 --1a 6acaaasa 5-1 m°.iS9 --5 Nocnanga-n1 -a.1 Inaaasa ag to 5x a,i -d.$ Intaae 3-tax5-9.6 � Inaraaaa war 1o% 1a -TII Merry Dale Nal -N1 841nar 0 0.2 Miles i ■1 r el tiP- i 1'r � o.aa.a a,rer 1ari 82.1 --1a 6acaaasa 5-1 m°.iS9 --5 Nocnanga-n1 -a.1 Inaaasa ag to 5x a,i -d.$ Intaae 3-tax5-9.6 � Inaraaaa war 1o% 1a -TII Merry Dale Nal -N1 841nar 0 0.2 Miles • The housing market recovery took off after 2012. • As residential values have rebounded, taxes have shifted from commercial/industrial property to residential property. • Residential areas that lost more value during the crash were now seeing a larger increase in value. • Areas that received a larger tax reduction in 2011-2015 had a larger increase in 2015-2018. RESIDENTIAL NON -APARTMENT, HOMESTEAD itTHREE YEAR PROPERTY TAX CHANGE, 2015-2018 t '1 -1 BASED ON2018 TRUTH IN TAXATION STATEMENTS • The years 2011-2018 encompass both the crash and recovery • The median percent increase was 11.37% over that seven year period (1.360/o/year compounded) • The median dollar increase was $253 over that seven year period ($36/year) 1 RESIDENTIAL NON -APARTMENT, HOMESTEAD -L SEVEN YEAR PROPERTY TAX CHANGE, 2011-2018 BASED ON2018 TRUTH IN TAXATION STATEMENTS D Imavr i1T10� �`rM■ ti� -�v �F-'_ 11 1■�� Srknr+� N1W. ■�— ■ Y WL OIL Residential Homestead (4,867) ON -11W_ - _ INJ - Decrease of 10% or More (107) �'` -'y■ -r■ Decrease of 5% to 10% (50) CF ±iIE 'FSS ® Decrease of 0% to 5%(97)■��`� � y rP 0 No Change (3) I r t• N F a ''- Increase 0% to 5% (432) ■ r 1� r71 L1.1, • i h it Increases%to 14%(1,267) ■,�rf1i -Increase of lD%to 20%(2,632} w : ■1 I "N..6107� - Increase of 20% or More (279) .-yiL1 �J No DataNr -I 1JWI r- _ to ki N 0 o2s 0.5 M303 1 ' RESIDENTIAL PROPERTY TAX CHANGE, 2017-2018 BASED ON 2018 TRUTH IN TAXATION STATEMENTS -------- - - - -- ................�.... u ���� ti ■ i. -L.....:.°_ i � I e FSM Mir iii M."n'd■:t 1NAMM ,jr 1 i 12 *1 l.: Residential Homestead (6316) � _ M"%..- I = Decrease of 10% or More (6) • M Decrease of 5% to 10% (7) _ _' r - '; , �,•1�r �' __ •- ®Decrease of 0% to 5% (118) ■ ` ' .F: No Change (B) ■• , r • L . Increase 4%to5°Y (1077) ' Increase 5% to 10% (3587) �� :■, Increase of 141% or More (1052 Other Classification a T ,I ' I 1 1 r --i p� MUMMIN - - FSM Mir iii M."n'd■:t 1NAMM ,jr 1 i 12 *1 l.: cF L A I I cF L A RESIDENTIAL NON -APARTMENT, NON -HOMESTEAD PROPERTY TAX CHANGE, 2017-2018 BASED ON 2098 TRUTH IN TAXATION STATEMENTS -_........__; , CIiYSTriL i ■ _...................... ....._.............. rw b-A Cc COMMERCIAL AND INDUSTRIAL PROPERTY TAX CHANGE, 2017-2018 BASED ON 2018 TRUTH IN TAXATION STATEMENTS l�� Please hand this form to the City Clerk before the meeting begins. To provide ample opportunity for all, speaking time is limited to three minutes and topic discussion is limited to 10 minutes. (Information provided on this form is open to the public) (please print clearly) The topic I wish to address is:_��/T' Name: I a, ✓ham, , Address: !2W 'o Zip Code: Date: (1)S Day Phone (optional): Email (optional): Thank you for your attendance and participation.