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2018.02.05 Council Meeting Packet4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: Feb. 2, 2018 City Council Meeting Schedule Feb. 5, 2018 Time Type of meeting Location 6:15 p.m. First City Council work session to discuss: •Finance update including capital funds and long range planning. Conference Room A 7 p.m. City Council meeting Council Chambers Following the City Council meeting Economic Development Authority (EDA) to consider: •Public Hearing: Authorizing lot sale of 5573 Zane Ave. N. •Tentative acceptance of a proposal from Novak- Fleck to purchase EDA lot at 5607 Zane Ave. N. Council Chambers Following the EDA meeting Second City Council work session to discuss: •Accessory dwelling units, “tiny houses” and temporary family health care dwellings. •Potential lease agreement with Verizon Wireless to place a telecommunications tower on city property at 3200 Vera Cruz Ave. N. •Review chapter 8 proposed changes. •Constituent issues update. •New business.* •Announcements.* Conference Room A 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 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: Feb. 2, 2018 City Council First Work Session Agenda Feb. 5, 2018 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 Feb. 5, 2018 in Conference Room A, 4141 Douglas Dr. N., Crystal, Minnesota. I. Attendance Council Members Staff ____ Dahl ____ Norris ____ Deshler ____ Therres ____ Kolb ____ Gilchrist ____ LaRoche ____ McGann ____ Parsons ____ Ray ____ Adams ____ Revering ____ Budziszewski ____ Sutter ____ Serres II. Agenda The purpose of the work session is to discuss the following agenda item: 1. Finance update including capital funds and long range planning. 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 DATE: February 5, 2018 TO: Mayor and City Council Anne Norris, City Manager FROM: Jean McGann, AEM Financial Solutions, LLC SUBJECT: Finance Update Background There are many activities happening in the Finance Department and we would like to update the City Council and request your input/guidance. Some of the projects are outcomes of the 2018 budget discussion and others are initiatives to improve operational efficiencies and effectiveness. Budget Each year the City prepares an annual budget. As we move forward, we would like to introduce the idea of preparing a two-year budget. With a two-year budget, the financial plan is laid out in year one for the next two years. During the second year of the two-year budget, an overview of the second year budget is completed and adjustments are made only if significantly material. These adjustments may be due to a legislative change or a substantial shift in Council priorities and/or service levels. Typically when a two-year budget is prepared, the second year is used to focus on Long-term planning. For many years the City has prepared a 5-year CIP. As discussed during the 2018 budget process, the Council and staff would like to have a more strategic approach taken to long-term planning and operations. During the budget process we discussed implementing the following funds by segregating the PIR fund and consolidating street funds. • IT Internal Service Fund • Building Internal Service Fund • Fleet Internal Service Fund • Park Capital Improvement Fund • Street Capital Project Fund (consolidation of the Street Construction Fund and Street Maintenance Fund) By segregating these funds, long-term planning is simplified by the fact that reserve levels are more readily known and the future cash flow needs are more apparent. An example of what a long-term plan looks like is included in your packet. Biennial budgeting Biennial budgeting is beneficial in that it allows the City to plan towards the future and connect the long-term plan with the budget. It can have the added benefit of leveling out any projected tax increases by planning for more than one year at a time. The risk a City takes when doing biannual budgeting is there may be legislative changes such as levy limits or reductions in local government aid. There are other risks as well such as increases in employer PERA contributions that are not anticipated at the time the first year of the two year budget is developed. These risks can be reduced by having a clear policy as to how the biennial budget process works. For example, it is a requirement, regardless if a one or two year budget is prepared, that the property tax levy is approved and certified on an annual basis. If there is a legislative or priority change, the Council still has the ability to modify the first or second year budget. A list of Biennial budget considerations is included in your packet. Long-term planning Establishing a long-term plan is different from creating a capital improvement program in that the long-term plan identifies what is achievable within expected available resources and projects financing strategies with expected project requirements all while sustaining the financial health of the city. When creating a long-term plan the following factors should be considered; • Focus on identifying long-term capital needs throughout the City • Anticipate expected revenue and expenditure trends including their relationship to multi-year financial plans and ongoing impacts to the operating budget due to the capital plan • Prepare cash flow projections of the amount and timing of the capital financing • Continue compliance with all established financial policies • Recognize appropriate legal constraints • Consider and estimate funding amounts from all appropriate funding alternatives • Consider sources and uses for debt service • Ensure reliability and stability of identified funding sources • Evaluate the affordability of the financing strategy, including the impact on debt ratios, applicable tax rates, and/or service fees Establishment and Consolidation of Funds As noted above, the Council has discussed the establishment of specific Internal Services Funds and Capital Project Fund as well as the consolidation of the Street Maintenance and Street Construction Funds. If Council is in agreement, a resolution will be brought to the City Council in March segregating the funds retroactive to January 1, 2018. The segregation of the PIR fund will be presented as outlined below. In addition, the Street Construction and Street Maintenance Funds will be combined. Local Government Aid In the final 2018 budget there was an allocation adjustment to remove Local Government Aid (LGA) from the General Fund and place it in the PIR Capital Project Fund. As we move into the preparation of the 2019 budget we will continue work towards non-reliance on state aids for general operations. Financial Policies As the City works towards planning for the future it is always a good idea to review financial policies. We are proposing to do a review and update of the City Financial Policies and develop this into an overall Financial Management Plan by the end of June. The policies we are proposing to review and/or either update/establish are as follows; • Cash and Investments – addresses cash reserves, cash policies and procedures and investment policy • Fund Reserves – outlines policies for each fund type and addresses fund balance reserve • Operating Budget and Compensation Philosophy – outlines process and procedure, defines funds budgets that will be established and addresses compensation components. • Capital Improvement Plans/Capital Assets – defines what a capital improvement plan is and how the program is managed as well as sets parameters and definitions for capital assets. • Debt Management – outlines how and when debt will be used and what it will be used for. Puts in place a formal mechanism for annual review of debt and capital needs. • Special Assessment – outlines how and when local improvements will be charged to property owners. • Conduit Debt – defines what conduit debt is, how it can be used, processes and procedures for use and when it should not be used. • Risk Management - provides for risk management policy • Economic Development Authority – incorporates all economic development policies • Revenue Management – outlines revenue sources, uses and objectives • Accounting, Auditing, Budget and Financial Reporting – provides guidance in all areas Electronic Workflow Implementation During the first quarter of this year we are working on implementation of an electronic workflow for all invoices that are paid by the City. By moving forward with this implementation the City will be scanning invoices received by mail and distributing to the responsible parties electronically. If invoices are received by email, they will be integrated with the electronic workflow system and also distributed electronically. The responsible approver will be providing both coding and authorization electronically. This information is then electronically routed to finance, reviewed and updated into the financial system. In addition, this allows the City to maintain electronic records rather than paper copies and will eventually reduce the space necessary for records retention. Lastly, as an added benefit, users of the financial system will be able drill down and see the actual invoice that was paid in the financial system. There are several phases to this project which we will work on in conjunction with LOGIS. We anticipate this system going live by the end of April. Initial Assessment The first step to this project was to review and analyze data provided by the City. After this review, City Project Team members, LOGIS and AEMFS met discuss overall anticipated project expectations, outcomes and timelines. Purchasing Policy and Approval Levels To have a successful implementation we have developed a purchasing policy that identifies purchasing authority and is consistent throughout the City. In addition, it provides guidance based on Minnesota legal compliance as well as internal policy. The workflow is then developed based on this policy. The draft policy is included with this packet. If the Council is comfortable with the policy we will bring it forward for formal approval. Testing, Implementation and Training Testing of the workflow process will be completed before the final implementation and go live date. This is a collaborative effort with LOGIS. We want to be certain the workflow system flow smoothly, processes are documented and implementation is completed. Once testing is complete, there will be a series of training sessions to ensure all staff responsible for using the system are comfortable, they have standard operating procedures and a resource to assist when they have issues. Purchasing Cards We have been working with Wells Fargo to review all services currently being received and exploring additional service options. While there are several service areas we are reviewing, we would like to move forward with securing purchasing cards for appropriate city staff members. The program offered through Wells Fargo allows for a rebate back to the City. Wells Fargo is estimating this amount to be approximately $15,000 and of course, is based on the level of purchases made with the card. By moving to purchasing cards, the City will be able to eliminate the use of credit cards, the majority of “house accounts” as well as other vendor cards. The advantage of this is the ability to strengthen the internal controls of the city by controlling the type, amount and location of purchases based on the individual user. Sewer - Senior discounts The City currently provides for a senior discount on utility rates. This senior discount is applied to both homeowners and renters. In total, the senior rebate costs the city approximately $7,500 per year. Based on how the program works, city staff must recertify renters on an annual basis. Once a homeowner is certified, there is no need to recertify unless there is a change of ownership. Homeowners are required to submit paperwork to apply for the discount. One challenge with homeowners is the city may not know if the senior homeowner has moved or is deceased and the remaining homeowner is not a senior. For renters, the city reviews the CRP and renters identification year to ensure renters are eligible for the senior discount. Overall, the administration of this program is extremely time consuming. The rebate itself equates to about $35 per renter. Staff would like to discuss the cost vs. benefit of this program. AEM vs. In-House staffing analysis AEM Financial Solutions has been working with the City of Crystal since the end of November 2016. Over this past year the City has incurred costs associated with out-sourcing as well as several special projects due to staff changes and process improvements. The comparative analysis below outlines the cost of AEM Financial Services to staffing the Finance Department internally. Conclusion The City Council is requested to review and provide input/direction. Biennual budgeting considerations Rationale for Biennual budgeting • Greater emphasis on management and service delivery • Greater emphasis on program evaluation and monitoring • Improved long-term planning; • Redeployment of human resources to activities other than budget preparation • Reduction in staff time spent on budget development Why consider Biennual • Improve financial management • Improve long-range and strategic planning • Improve program monitoring and evaluation • Link operating and capital activities and spending • Reallocate and redeploy staff to other functions and activities • Reduce ‘‘opportunism’’ to increase department, division, and/or unit budget appropriations from year to year • Reduce staff time dedicated to budget development Disadvantages • Unstable local economy may present difficulties in forecasting revenues and expenditures • Projecting expenditures and revenues may be difficult for some departments/divisions • Budget process may need to incorporate new policies and processes • The multi-year budget may not take into account ongoing economic and environmental changes How to be successful with Biennual budgeting • Amend existing financial and budget policies and procedures • Assess the local economic environment by examining key economic and fiscal indicators • Conduct an analysis of the existing revenue structure • Update the budget manual to reflect the changes in the budget processes • Document and specify the underlying economic assumptions • Effectively communicate the need for a multi-year budget with key stakeholders • Establish a budget review process for ensuring compliance with budget polices, processes, and targets • Link the multi-year budget with the strategic plan, long-range financial plan and revenue forecast, and financial and budgetary policies City of Crystal, Minnesota Purchasing Policy Adopted by City Council on: __________________________ 1. Policy The budget allocates funds for the purchase of personnel, supplies, other services and capital. Requests cannot be made for items outside the budget except under special circumstances. These special circumstances will have to be approved by the City Manager. The Purchasing Agent is the City Manager. Purchases less than $500 may be purchased by authorized staff members; $2,500 may be purchased by Supervisors; $15,000 may be purchased by Department Directors; purchases up to $25,000 may be approved by the City Manager (without Council approval); and purchases exceeding $25,000 must be approved by the City Council with the following exceptions; Professional services – the City is not required to use the competitive bidding process when contracting for professional services, such as those of engineers, lawyers, architects, and accountants as well as other services requiring technical or professional training like refuse hauling and janitorial services. Insurance contracts – the City is not required to use the competitive bidding process for insurance contracts however; the City must seek requests for proposals for group insurance. 2. Organization Affected All Departments City of Crystal, Minnesota 3. Procedure A. Purchase & Bidding Requirements: Amount of Purchase: Type of quote required: Approval required by: Written bid specifications: Sealed bids required: Contract required: Purchase order required: Purchases under $500 None None not required no no no Purchases under $2,500 two telephone quotes are preferred Supervisor not required no no no Purchases between $2,500- $15,000 two written quotes required unless special circumstances are noted Dept. Director as required based on type of purchase no no no Purchases over $15,000 up to $25,000 three written quotes required unless special circumstances are noted City Manager as required based on type of purchase no no no Purchases over $25,000 up to $100,000 three written quotes required unless special circumstances are noted; consult cooperative purchasing programs City Council as required based on type of purchase no construction projects yes; commodities at discretion of City Manager no Purchases greater than $100,000 City Clerk must advertise in City’s legal newspaper City Council required yes yes no Capital Improvement Program (CIP) Purchases – see next page City of Crystal, Minnesota B. Guaranteed Energy Savings Agreements: State Statues authorize the City to enter into a guaranteed energy savings agreement with a qualified provider for the purpose of implementing comprehensive utility cost-saving measures to improve the energy efficiency of various municipal facilities within the City so long as the implementation costs will not exceed the amount to be saved in utility and maintenance costs over a twenty year period with said utility and maintenance cost savings guaranteed in writing by the qualified provider. The City shall follow all requirements as prescribed in Statute related to this authority to enter into Guaranteed Energy Savings Agreements. C. Responsible Contractor Compliance: A contractor responding to a solicitation document of a contracting authority shall submit to the contracting authority a signed statement under oath by an owner or officer verifying compliance with each of the minimum criteria in subdivision 3 of Minnesota Statute 16C.285, with the exception of clause (7), at the time that it responds to the solicitation document. A contracting authority may accept a signed statement under oath as sufficient to demonstrate that a contractor is a responsible contractor and shall not be held liable for awarding a contract in reasonable reliance on that statement. A prime contractor, subcontractor, or motor carrier that fails to verify compliance with any one of the required minimum criteria or makes a false statement under oath in a verification of compliance shall be ineligible to be awarded a construction contract on the project for which the verification was submitted. A false statement under oath verifying compliance with any of the minimum criteria may result in termination of a construction contract that has already been awarded to a prime contractor or subcontractor or motor carrier that submits a false statement. A contracting authority shall not be liable for declining to award a contract or terminating a contract based on a reasonable determination that contractor failed to verify compliance with the minimum criteria or falsely stated that it meets the minimum criteria. A verification of compliance need not be notarized. An electronic verification of compliance made and submitted as part of an electronic bid shall be an acceptable verification of compliance under this section, provided that it contains an electronic signature as defined in section 325L.02, paragraph (h) of Minnesota Statues 16C.285. D. Cooperative Purchasing Contracts: For contracts estimated to exceed $25,000, a city must consider the availability, price, and quality of supplies, materials, or equipment available through the state cooperative purchasing venture before buying through another source. If the City is not utilizing the state's cooperative purchasing venture, the City may consider another national municipal association's purchasing alliance or cooperative created by a joint powers agreement that purchases items from more than one source on the basis of competitive bids or competitive quotations. City of Crystal, Minnesota E. Bidding Requirements: When supplies or equipment are competitive in nature, specifications cannot exclude all but one type of equipment or supplies. Proposals and specifications must allow free and full competition. Bidding requirements cannot be avoided by splitting a contract into several contracts, each of which is below the minimum amount requiring sealed bids. For example, the City cannot purchase $200,000 of lumber in several transactions, each involving an expenditure of less than $100,000. However, if materials or work logically fall into two separate contracts because they involve separate transactions, as for the service of contractors specializing in different kinds of work, there is no reason why the City cannot negotiate the contracts individually without sealed bids if the bids do not exceed the $100,000 minimum. o Capital Improvement Program (CIP) purchases – the CIP is not an adopted budget document, therefore, the expenditure has not been formally authorized. A resolution should be adopted listing the funding source to give the formal authorization to expend the funds for the equipment purchase. o Sales tax – Beginning January 1, 2015 purchases made by the City of Crystal are generally exempt. The general exemption for cities, however, does not apply to purchases made by the City to provide the following goods and services: golf courses, solid waste, and cafes. Certain other exclusions are listed in Statute and should be reviewed on a regular basis. Bidders should specify whether their bid includes sales tax or not. After the work is completed and a purchase order is processed, if the invoice does not itemize sales tax you must obtain a corrected invoice from the vendor if sales tax is applicable on the item purchased. The City is not subject to the Hennepin County Sales and Use Tax of 0.15% that went into effect January 1, 2007. o Consultant services – state law does not require cities to competitively bid contracts for professional services (i.e. attorney, architect, engineer, accountant, cleaning company, or other person with technical, scientific, or professional training such as refuse hauling). o Sealed bids are required for purchases exceeding $100,000, and bids must be advertised by the City Clerk in the City's legal newspaper (Notice to Bidders) and publicly opened and approved by Council resolution. In addition to the legal notice, the City must prepare instructions to bidders and general specifications for sealed bids. Attaching a copy of the proposed contract to the instructions to bidders is required. Sealed bids, including the number of bids received prior to bid opening, are nonpublic. Once opened, the name of the bidder and the dollar amount of the bid are public (all other data is private until completion of the selection process). o Bids vs. Quotes terminology – always use term quotation unless referring to a sealed bid. City of Crystal, Minnesota o Bid security (for sealed bids for purchases over $100,000) in the amount of five percent (5%) of the bid shall be submitted to the City Clerk. The bid security guarantees that in the event the bidder’s offer is accepted, the bidder will enter into a contract in accordance with the proposal. Bid security of the successful bidder will be returned upon execution of the contract documents. Bid securities of unsuccessful bidders will be returned within a reasonable time period (Minnesota Statute §574.27). Failure of the successful bidder to execute the Contract and furnish applicable bonds within ten (10) days after receiving written notice of the award shall cause the bid security to be forfeited as liquidated damages to the City. The City Council at this time may award the contract to the next lower competent bidder unless the Council determines that public interest will be better served by accepting a higher bid, or the contract may be re-advertised. As a statutory City, contracts and bids must be awarded to the lowest responsible bidder. It should be noted that the bidder who submits the lowest bid in dollars is not necessarily the "lowest responsible bidder" and the quoted phrase gives the Council reasonable discretion in choosing among bidders. Responsibility, in bid statutes, means not only financial responsibility but also integrity, skill, and the likelihood that the bidder will perform faithful and satisfactory work. o Rejecting Bids (and related Data Practices laws) - the City has the right to reject any and all bids (requests for proposals, requests for bids, sealed bids). All data submitted in response to bid requests are private until bids are opened. If bids are rejected prior to the completion of the evaluation or selection process, all data, other than that made public at the bid opening, remain private until a re-solicitation of bids results in completion of the selection process. If the rejection occurs after the completion of the selection process, the data remain public. If a re-solicitation of bids does not occur within one year of the bid opening date, the remaining data become public F. Use of Requisition/Purchase Order Form: o A purchase order shall not be required by the City. If the vendor requires a purchase order, City staff may request a purchase order from Finance to provide to the vendor. No additional tracking of the purchase order throughout the accounts payable transaction cycle is required. CITY OF SAMPLE, MINNESOTA 2015 - 2020 FINANCIAL PLAN DATE Prepared by AEM Financial Solutions, LLP CLIENT LOGO City Of Sample City of XX, Minnesota 2015 - 2020 Financial Plan Table Of Contents Page No. Introductory Section Transmittal Letter 4 Financial Section Schedule of Property Tax Levied and Tax Rates 8 Schedule of Annual Fund Cash Balances 9 Outstanding Debt Schedule 10 Schedule of Debt Transfer by Year and Fund 11 Capital Improvement Plan Capital Outlay Reserve Fund 275 Schedule of Planned Capital Outlay 2014 to 2020 12 Schedule of Projected Revenue, Expenditures and Debt 2014 to 2020 13 Capital Equipment Pan - Enterprise Funds Schedule of Planned Capital Outlay 2014 to 2020 14 Selected Graphical Data from Projections 15 INTRODUCTORY SECTION CITY OF SAMPLE OF, MINNESOTA 2015 - 2020 FINANCIAL PLAN 3 DATE Honorable Mayor and City Council City of Sample Address City, MN Zip Introduction We have prepared the attached 2015 -2020 Financial Plan for the City of Sample (the City) that is intended to give a big picture view of the status now and through year 2020. We have scheduled projected tax levy, cash balances, planned capital and debt for the City based on assumptions by management. We have not examined the projection and do not express an opinion or any other form of assurance on the accompanying schedules or assumptions. Furthermore, there will usually be differences between the forecasted and actual results, because events and circumstances frequently do not occur as expected and those differences may be material. We have no responsibility to update this report for events and circumstances occurring after the date of this report. The City’s assumptions made are as follows: Assumptions 1.Normal operating expenses will increase by a three percent inflation rate. 2.Housing growth is assumed at five units per year each with an average market value of $142,700 increasing by 1 percent per year starting in 2015. The City is expected to receive approximately $101,000 from Trunk fees in 2015 related to The Haven assisted living project. 3.Equipment has been identified in the capital plan and is to be expended in the capital fund (275). 4.The general fund tax levy increases to balance the increase in the budget and to sustain a 50 percent reserve compared to the following years budget. 5.No new debt or new projects are included in the plan through 2020. 6.The 2010B G.O. refunding bond fund has sufficient resources to allow the City to reduce the scheduled levies in future years. The projection currently has a levy reduction of approximately $145,000 for the 2015 Levy, a $42,000 reduction for the 2016 levy, and $20,000 reductions the remaining years. 4 Assumptions with Future Action 1.Fund 520 (2013B Bond Fund) - the 2013 levy collectable in 2014 was not certified to the County. Future levies have been adjusted by an increase of $11K per year to ensure the City has adequate reserves to bond maturity. 2.The City will strive to reduce its reliance on the State’s Local Government Aid (LGA) program, by reducing the budget for LGA over a 15 year period beginning in year 2016 budget. 3.The first two bonds to mature are the 2013B Infrastructure bonds and the 2008 bonds both of which mature in the 2024. Council will need to decide how to utilize remaining cash in the funds if there is any. Options for the remaining cash reserves could be transferred to other debt service funds or any other fund. 4. Fund 320 - 2013 Infrastructure fund. There currently is approximately $160K of cash in the fund. Council has discussed utilizing these funds for future qualifying projects or transferring the remaining funds into the related debt service fund 520 - 2013B Infrastructure fund. 5. The Special Capital Projects fund has been used to keep the General Fund’s fund balance at 35 percent of the following year’s budget. The fund was established to provide resources to help offset infrastructure projects. Management proposes to close the fund and transfer the funds to pay off the interfund loan to the W ater fund and transfer remaining balance to the General fund. This will help build the General Fund’s cash balance reserve percentage compared to the following year’s budget. The entire sale proceeds of the industrial park land would then be used to pay back the General fund. 6.Annually the plan will be updated with actual amounts adjusted to agree to the annual audited financial statements. The updated plan will be utilized as part of preparing the annual budget. Key Highlights 1.The General fund builds on the reserve throughout the life of the projection with the assumptions of increasing levy to build the General fund balance reserve, while decreasing the City’s reliance on local government aid. The City will also maintain debt service reserve balances to meet the required principal and interest payments. 2.The General fund proposed operating tax levy increases approximately 4.3 percent in 2015 from 2014. The debt service levy increases 1.1 percent from 2014 and the City increased the capital levy to $110,056. The overall proposed levy increase is 8.7 percent. The projection incorporates these proposed amounts. 3.The Storm Water special revenue fund is currently at a $200K cash deficit that is not projected to correct itself in the six year period. 4.Fund 275 - Capital Fund - the capital fund currently is funded by transfers in from the General fund through levies. Staff has proposed a tax levy for 2015 of $110,056 to fund future capital purchases. The projection includes future levies to continue to this fund. The fund cash increases over the 6 year projection period. This fund will be analyzed each year as part of the budget process. 5.Fund 401 - Special Capital Projects fund has approximately $330K of cash reserves in it. As mentioned above, this fund was established to provide a source of funding for infrastructure improvements. Management has recommended this fund be closed as noted above in the assumptions section. 6.The Sewer and Storm Water funds currently do not have funds set aside to pay for capital related purchases. Using the current increases included in the rate study, neither of the funds will have funds set aside throughout the projection period. This is based on first meeting the operating cash reserve goal and determining the amount in excess of that balance. The financial goal is shown as the third bullet in the financial goals section. 5 Financial Goals •Reach a 50 percent cash reserve in the General fund. The 50 percent balance will fund half of the budget through June of each year until the 1st half tax settlement is received from the County. •Maintain positive resources in the City’s debt service funds throughout the life of the bonds. •Ensure enterprise funds (Water & Sewer) reach an operating cash balance that is equal or above 50 percent of the annual operating expenses plus 100 percent of debt service requirements. In addition to the operating cash balance, a cash balance established to fund future capital purchases based on the capital needs of the fund. •Build and maintain capital resources to fund the capital improvement/equipment replacement plan. •Reduce the City reliance on local government aid over a 15 year period. •Build and maintain positive cash balances in all City funds. •Annually determine whether or not there are available resources in the Water fund that can be used to improve the cash position of the Sewer fund. •Incorporate an infrastructure improvement plan into the long range plan focusing on planning projects to fit the debt management goals of the City. Council has created the following list of important projects that will be addressed in future years: •Street/Infrastructure improvements a.Main and Oak Streets Reconstruction b.2nd Avenue Improvements/relocate main lift station c.Mill and overlay project, phase II •Capital Equipment Fund a.Proactive vs. Reactive budgeting •Pavilion a.Structural integrity improvements •Image and Appearance of the City a.Public Facilities/Property - clean-up b.New community entrance signs, Faxon road banners & decorative lighting poles •Replace South Fire Station 6 FINANCIAL SECTION CITY OF SAMPLE OF , MINNESOTA 2015 - 2020 FINANCIAL PLAN 7 City of Sample, Minnesota Schedule of Property Taxes Levied and Tax Rates For the Years Ended December 31, 2013-2014 Actual and 2015 To 2020 Estimated 2013 2014 2015 2016 2017 2018 2019 2020 Actual Actual Preliminary Estimated Estimated Estimated Estimated Estimated Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts Property Taxes Levied for General Purposes 101 General Fund 836,694$ 891,741$ 930,445$ 1,051,248$ 1,103,335$ 1,156,562$ 1,225,971$ 1,312,978$ Additional levy for General fund to increase reserve balance - - - 65,000 65,000 65,000 50,000 50,000 Total General Fund operating levy 836,694 891,741 930,445 1,116,248 1,168,335 1,221,562 1,275,971 1,362,978 Property Taxes Levied for Debt Service 501 35,035 34,578 33,910 33,003 37,466 36,327 35,187 34,048 515 36,762 - - - - - - - 516 86,527 89,099 91,325 88,112 89,792 91,262 95,522 88,322 517 206,899 199,793 197,905 196,013 199,373 202,628 200,528 198,428 518 217,354 315,360 161,102 257,262 318,357 316,729 314,787 317,778 519 73,383 104,901 103,792 103,777 105,758 102,654 103,587 110,030 520 - - 164,121 160,971 163,071 159,816 161,811 156,771 601 18,600 19,215 19,215 18,427 17,955 17,482 22,260 21,630 - - - - 13,800 27,600 27,600 27,600 N/A - - - - - - - - 2010 infrastructure Debt Service Industrial Park Debt Service 2008 Debt Service 2012 Debt Service G.O refunding Debt Service 2011A G.O refunding Debt Service 2013B infrastructure Debt Service Water fund 2010B G.O. refunding Potential levies for equipment certificate Matured bond series Subtotal 674,560 762,946 771,370 857,565 945,572 954,497 961,282 954,607 Property Taxes Levied for Capital Replacement Fund 275 Capital outlay reserve fund - 11,695 110,056 75,000 110,000 152,000 175,000 200,000 Total taxes levied 1,511,254$ 1,666,382$ 1,811,871$ 2,048,813$ 2,223,906$ 2,328,059$ 2,412,253$ 2,517,585$ Operational percent increase (decrease in levy)6.6%4.3%20.0%4.7%4.6%4.5%6.8% Debt percent increase (decrease in levy)13.1%1.1%11.2%10.3%0.9%0.7%-0.7% Capital percent increase (decrease in levy)100.0%841.1%-31.9%46.7%38.2%15.1%14.3% Total percent increase (decrease in levy)10.3%8.7%13.1%8.5%4.7%3.6%4.4% Tax Capacity Personal and real estate - Carver County 2,131,874 2,131,874 2,586,759 2,664,361 2,744,292 2,826,621 2,911,419 2,998,762 Total tax capacity from the county 2,131,874 2,131,874 2,536,987 2,664,361 2,744,292 2,826,621 2,911,419 2,998,762 Assumed new growth (5 homes each year)14,484 21,835 29,333 36,981 44,782 Assumed commercial growth ($1m MV = $10K in TC)16,000 5,000 5,000 5,000 5,000 Less: contribution to fiscal disparities (286,240) (286,240) (290,521) (299,237) (308,214) (317,460) (326,984) (336,793) Less: tax increment (36,357) (36,357) (51,138) (52,672) (54,252) (55,880) (57,556) (59,283) Adjusted tax capacity used for local rate 1,809,277 1,809,277 2,195,328 2,342,936 2,408,661 2,487,614 2,568,860 2,652,468 Add: distribution from fiscal disparities 337,300 337,300 430,356 430,356 430,356 430,356 430,356 430,356 Adjusted net tax capacity 2,146,577$ 2,146,577$ 2,625,684$ 2,773,292$ 2,839,017$ 2,917,970$ 2,999,216$ 3,082,824$ Tax Rates General 35.27%34.76%32.32%37.64%39.12%40.03%40.81%44.61% Scheduled debt levies 27.05%29.35%26.79%28.91%31.20%30.37%29.86%30.34% Scheduled capital levies 0.00%0.00%3.82%2.53%3.68%4.98%5.60%6.55% Proposed additional debt levies 0.00%0.00%0.00%0.00%0.46%0.90%0.88%0.90% Total direct tax rate (factors fiscal disparities not reflected in tax capacity)62.31%64.11%62.93%69.08%74.46%76.29%77.15%82.40% Population 3,608 3,608 3,621 3,633 3,646 3,658 3,671 3,683 Taxes per capita 419$ 462$ 500$ 564$ 610$ 636$ 657$ 684$ Median home value (Jan 2)142,700$ 142,700$ 144,127$ 145,568$ 147,024$ 149,964$ 152,963$ 156,022$ Median home taxes (from city)737 758 754 839 916 963 999 1,094 Percent change from prior year dollars 2.88%-0.55%11.21%9.20%5.12%3.75%9.55% Tax capacity growth rates 0.00%21.34%3.00%3.00%3.00%3.00%3.00% 8 City of Sample, Minnesota Schedule of Annual Fund Cash Balances For the Years Ended December 31, 2013 Actual and 2014 To 2020 Projected 2013 2014 2015 2016 2017 2018 2019 2020 Actual Estimated Estimated Estimated Estimated Estimated Estimated Estimated Amounts Amounts Amounts Amounts Amounts Amounts Amounts Amounts Trend Government-Type General Operations 101 General 598,979$ 693,264$ 698,270$ 763,270$ 828,270$ 893,270$ 943,270$ 993,270$ 3$ Cash balance as a percent of the following years budget 35%40%41%44%47%48%49% Special Revenue 201 Park Dedication 87,024$ 87,894$ 88,773$ 89,661$ 90,558$ 91,463$ 92,378$ 93,302$ 2$ Prev 603 Storm Sewer N/A (233,726) (262,010) (254,099) (242,235) (226,172) (206,194) (182,006) 1$ Subtotal 87,024 (145,832) (173,237) (164,438) (151,677) (134,709) (113,817) (88,705) Debt Service 53,787$ 54,374$ 54,266$ 54,714$ 60,373$ 60,860$ 61,290$ 61,663$ 2$ 310,656 313,034 313,034 310,134 312,115 314,085 319,036 315,735 2$ 218,081 269,866 275,721 288,323 306,211 324,383 337,587 350,823 2$ 987,308 942,065 835,498 769,248 765,155 756,510 748,342 745,906 2$ 313,611 324,765 335,522 346,757 358,024 369,317 380,627 402,448 2$ 501 2010 Infrastructure Debt Service 516 2008 Debt Service 517 2012 Debt Service 518 G.O Refunding Debt Service 519 2011A G.O Refunding Debt Service 520 2013B Infrastructure Debt Service 48,732 53,444 78,865 94,516 115,424 131,336 152,501 167,789 2$ Subtotal 1,932,175 1,957,547 1,892,905 1,863,692 1,917,303 1,956,491 1,999,384 2,044,364 Capital Projects 225 Economic Recovery 133,233$ 134,565$ 135,911$ 137,270$ 138,643$ 140,029$ 141,430$ 142,844$ 3$ 275 Capital Fund 435,846 435,956 410,512 261,718 161,335 314,948 466,098 471,349 2$ 320 2013 Infrastructure 230,129 160,000 160,000 161,600 163,216 164,848 166,497 168,162 2$ 401 Special Capital Projects 329,085 - - - - - - - 2$ 420 TIF 2-1 5,369 4,990 4,607 4,220 3,829 3,434 3,035 2,633 2$ 421 TIF 3-1 240 (142) 7,659 8,375 8,612 8,356 7,591 6,303 2$ 422 TIF 3-2 7,761 9,352 8,086 8,718 9,067 9,125 8,882 8,331 2$ 423 TIF 3-3 - - 7,900 7,979 8,059 8,139 8,221 8,303 2$ 424 TIF 3-4 - - - - - - - - 2$ 425 TIF 1-5 - - - - - - - - 2$ Subtotal 1,141,663 744,722 734,675 589,879 492,760 648,880 801,754 807,924 Total - Governmental-type Funds 3,759,841$ 3,249,700$ 3,152,613$ 3,052,402$ 3,086,655$ 3,363,932$ 3,630,590$ 3,756,853$ Business-Type Enterprise Funds 601 Water 596,257$ 787,447$ 756,540$ 757,511$ 836,285$ 945,044$ 1,070,158$ 1,236,812$ 3 $ 602 Sewer 41,404 90,238 76,284 73,440 121,063 198,900 227,321 235,027 1$ 679,221 761,479 856,793 971,121 1,100,499 1,246,041 1,413,993 1,600,414 3$ 251 Assisted Living 603 Storm Water (233,726) - - - - - - - Total - Business-type Funds 637,661$ 877,685$ 832,824$ 830,952$ 957,348$ 1,143,944$ 1,297,479$ 1,471,839$ Total Cash Reserves - All City Funds 4,397,502$ 4,127,385$ 3,985,437$ 3,883,354$ 4,044,004$ 4,507,876$ 4,928,069$ 5,228,692$ - Cash balance trending positively - Cash balance trending at break even - Cash balance trending negatively and should be addressed 9 City of Sample, Minnesota Outstanding Debt Schedule For the Years Ended December 31, 2013 Actual and 2014 To 2020 Projected 2013 2014 2015 2016 2017 2018 2019 2020 Original Issue Maturity Call Interest Actual Estimated Estimated Estimated Estimated Estimated Estimated Estimated Fund Issue Issue Date Date Date Rate Balance Balance Balance Balance Balance Balance Balance Balance Enterprise Fund Debt Water Fund 601 Water 2012A (refunded 2003A bonds)1,430,625$ 3/14/2012 2/1/2024 2/1/2021 .40 - 2.00 %1,430,625$ 1,312,500$ 1,194,375$ 1,072,500$ 948,750$ 823,125$ 695,625$ 566,250$ 601 General Obligation Bonds, Series 2011A 245,000 9/15/2011 2/1/2032 2/1/2020 3.00 - 3.75 235,000 220,000 205,000 190,000 175,000 160,000 145,000 130,000 601 GO Water Revenue Bonds 2008B 2,715,000 10/30/2008 2/1/2029 2/1/2018 3.75 - 5.00 2,495,000 2,380,000 2,260,000 2,135,000 2,010,000 1,880,000 1,745,000 1,600,000 601 General Obligation Bonds, Series 2010A 120,000 8/4/2010 2/1/2026 2/1/2018 1.45 - 3.65 115,000 110,000 105,000 100,000 90,000 80,000 70,000 60,000 601 General Obligation Refunding Bonds, Series 2010B 255,000 12/7/2010 2/1/2021 2/1/2019 2.00 - 3.00 225,000 200,000 175,000 150,000 125,000 100,000 70,000 35,000 601 (PFA) GO Water Revenue Note, Series 2010 1,966,604 11/24/2010 8/20/2039 2.461 1,816,000 1,765,000 1,713,000 1,660,000 1,606,000 1,550,000 1,493,000 1,434,000 6,316,625 5,987,500 5,652,375 5,307,500 4,954,750 4,593,125 4,218,625 3,825,250 Sewer Fund 602 Sewer 2012A (refunded 2003A bonds)2,384,375$ 3/14/2012 2/1/2024 2/1/2021 .40 - 2.0 %2,384,375$ 2,187,500$ 1,990,625$ 1,787,500$ 1,581,250$ 1,371,875$ 1,159,375$ 943,750$ 602 General Obligation Bonds, Series 2011A 110,000 9/15/2011 2/1/2032 2/1/2020 3.00 - 3.75 105,000 100,000 95,000 90,000 85,000 80,000 75,000 70,000 602 GO Bonds 2013B 130,000 9/12/2013 2/1/2024 2/1/2021 2.0 - 3.0 130,000 130,000 120,000 110,000 100,000 90,000 75,000 60,000 2,619,375 2,417,500 2,205,625 1,987,500 1,766,250 1,541,875 1,309,375 1,073,750 Assisted Living Debt 251 2012A Housing Gross Revenue Refunding Bonds 3,090,000$ 12/01/2012 8/1/2031 8/1/2021 2.70 - 3.10 %3,015,000$ 2,870,000$ 2,720,000$ 2,570,000$ 2,415,000$ 2,255,000$ 2,095,000$ 1,930,000$ 251 2012B G.O Housing Revenue Refunding Bonds 3,000,000 12/01/2012 8/1/2040 8/1/2021 1.00 - 4.30 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 6,015,000 5,870,000 5,720,000 5,570,000 5,415,000 5,255,000 5,095,000 4,930,000 TOTAL ENTERPRISE FUND DEBT 14,951,000 14,275,000 13,578,000 12,865,000 12,136,000 11,390,000 10,623,000 9,829,000 Government-Type G.O. Improvement Bonds 535,000$ 08/04/2010 2/1/2026 2/1/2018 1.45 - 3.65 %475,000$ 445,000$ 415,000$ 385,000$ 355,000$ 320,000$ 285,000$ 250,000$ 65,000 8/4/2010 2/1/2026 2/1/2018 1.45 - 3.65 65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 1,325,000 07/02/2008 2/1/2024 2/1/2017 3.00 - 4.10 1,040,000 965,000 885,000 800,000 715,000 625,000 530,000 430,000 1,420,000 11/05/2009 2/1/2039 2/1/2020 6.00 - 6.15 1,420,000 1,420,000 1,420,000 1,420,000 1,420,000 1,420,000 1,420,000 1,420,000 1,920,000 06/20/2013 2/1/2031 2/1/2022 2.0 - 3.25 1,920,000 1,875,000 1,785,000 1,695,000 1,605,000 1,510,000 1,410,000 1,310,000 5,560,000 12/07/2010 2/1/2027 2/1/2019 2.00 - 3.63 5,560,000 5,215,000 4,865,000 4,505,000 4,135,000 3,750,000 3,355,000 2,950,000 2,770,000 09/15/2011 2/1/2032 2/1/2020 3.00 - 3.75 2,630,000 2,480,000 2,325,000 2,165,000 2,000,000 1,830,000 1,655,000 1,475,000 125,000 9/15/2011 2/1/2032 2/1/2020 3.00 - 3.75 120,000 115,000 110,000 105,000 100,000 95,000 90,000 85,000 501 2010 Infrastructure Debt Service 501 2010 Infrastructure Debt Service (Storm portion) 516 2008 Debt Service 517 2012 Debt Service 517 G.O. Improvement Bonds 2013A 518 G.O Refunding Debt Service, series 2010B 519 2011A G.O Refunding Debt Service 519 2011A G.O Refunding Debt Service (Storm Portion 520 G.O. Bonds 2013B 1,575,000 9/12/2013 2/1/2024 2/1/2021 2.0 - 3.0 1,575,000 1,575,000 1,440,000 1,290,000 1,140,000 985,000 830,000 670,000 Total G.O. Improvement Bonds 15,295,000 14,805,000 14,150,000 13,300,000 12,415,000 11,515,000 10,575,000 9,610,000 8,620,000 Total Governmental-type Debt 14,805,000$ 14,150,000$ 13,300,000$ 12,415,000$ 11,515,000$ 10,575,000$ 9,610,000$ 8,620,000$ Debt Per Capita - governmental total 4,172$ 3,987$ 3,748$ 3,498$ 3,245$ 2,980$ 2,708$ 2,429$ Debt Per Capita - enterprise funds 4,144 3,956 3,750 3,541 3,329 3,114 2,894 2,669 Total Debt per capita 8,315$ 7,944$ 7,498$ 7,039$ 6,574$ 6,093$ 5,602$ 5,098$ 10 City of Sample, Minnesota Schedule of Debt Transfers By Year and Fund For the Years Ended December 31, 2014 To 2020 Estimated Fund 2014 2015 2016 2017 2018 2019 2020 2010 Infrastructure Debt Service Fund (501) Transfer in from fund 603 (Storm Water)7,273$ 7,169$ 7,038$ 6,906$ 6,759$ 6,597$ 6,434$ 7,273 7,169 7,038 6,906 6,759 6,597 6,434 2008 Debt Service fund (516) Transfer in from fund 602 (Sewer)11,810$ 11,810$ 11,810$ 11,810$ 11,810$ 11,810$ 11,810$ Transfer in from fund 601 (Water)683 683 683 683 683 683 683 12,493 12,493 12,493 12,493 12,493 12,493 12,493 2010B G.O. Refunding Debt Service fund (518) Transfer in from fund 603 (Storm Water)7,281$ 7,281$ 7,281$ 7,281$ 7,281$ 7,281$ 7,281$ Transfer in from fund 602 (Sewer)75,312 75,312 75,312 75,312 75,312 75,312 75,312 Transfer in from fund 601 (Water)42,573 42,573 42,573 42,573 42,573 42,573 42,573 125,166 125,166 125,166 125,166 125,166 125,166 125,166 2011A Debt Service fund (519) Transfer in from fund 603 (Storm Water)32,510$ 32,369$ 32,190$ 31,987$ 31,763$ 32,054$ 32,278$ Transfer in from fund 602 (Sewer)64,980 66,423 66,691 64,849 67,977 65,916 68,818 Transfer in from fund 601 (Water)21,439 21,455 21,434 21,393 21,331 21,747 22,101 118,929 120,247 120,315 118,229 121,071 119,717 123,197 Water enterprise fund (601) Transfer out to fund 516 (2008 Bonds)(683)$ (683)$ (683)$ (683)$ (683)$ (683)$ (683)$ Transfer out to fund 518 (2010B bonds)(42,573) (42,573) (42,573) (42,573) (42,573) (42,573) (42,573) Transfer out to fund 519 (2011A bonds)(21,439) (21,455) (21,434) (21,393) (21,331) (21,747) (22,101) (64,695) (64,711) (64,690) (64,649) (64,587) (65,003) (65,357) Sewer enterprise fund (602) Transfer out to fund 516 (2008 Bonds)(11,810)$ (11,810)$ (11,810)$ (11,810)$ (11,810)$ (11,810)$ (11,810)$ Transfer out to fund 518 (2010B bonds)(75,312) (75,312) (75,312) (75,312) (75,312) (75,312) (75,312) Transfer out to fund 519 (2011A bonds)(64,980) (66,423) (66,691) (64,849) (67,977) (65,916) (68,818) (152,102) (153,545) (153,813) (151,971) (155,099) (153,038) (155,940) Storm Water special revenue fund (603) Transfer out to fund 518 (2010B bonds)(7,281)$ (7,281)$ (7,281)$ (7,281)$ (7,281)$ (7,281)$ (7,281)$ Transfer out to fund 519 (2011A bonds)(32,510) (32,369) (32,190) (31,987) (31,763) (32,054) (32,278) Transfer out to fund 501 (2010 infrastructure bonds)(7,273) (7,169) (7,038) (6,906) (6,759) (6,597) (6,434) (47,063) (46,819) (46,508) (46,174) (45,803) (45,932) (45,992) 11 City of Sample, Minnesota Capital Equipment Plan - Capital Outlay Reserve Fund 275 Schedule of Planned Capital Outlay 2014 To 2020 2014 2015 2016 2017 2018 2019 2020 Department Year Purchased Year to replace Item Cost Estimated Amounts Estimated Amounts Estimated Amounts Estimated Amounts Estimated Amounts Estimated Amounts Estimated Amounts Administration 2019 Update City Code 7,000$ -$ -$ -$ -$ -$ 7,000$ -$ Fire department (equipment)2017 Civil Defense Equipment 25,000 - - - 25,000 - - - Fire department (equipment)2017 SCBA's 75,000 - - - 75,000 - - - Fire department (vehicles)2020 Tanker Chasis (1995 & 1996)50,000 - - - - - - 50,000 Fire department (vehicles)2017 Pumper Truck 225,000 - - - 225,000 - - - Fire department (vehicles)2020 Ladder Truck 600,000 - - - - - - 600,000 Streets 2016 Bush Hog Mower 18,500 - - 18,500 - - - - Streets 2015 Club car (replace the 2003)4,000 - 4,000 - - - - - Streets 2017 Club car (replace the 2004)4,000 - - - 4,000 - - - Streets 2014 Speed Alert Sign Board 5,825 5,825 - - - - - - Streets 2016 Pole Painting Faxon-212, Reform-212 25,000 - - 25,000 - - - - Streets 2015 Replace P-4 Ford F-450 60,000 - 60,000 - - - - - Streets 2016 Dump Truck (Replace 2003 Sterling)150,000 - - 150,000 - - - - Streets 2019 Plow & Hitch (V-Plow)20,000 - - - - - 20,000 - Streets 2015 Sidewalk Snow Rem Equip (blower)6,000 - 6,000 - - - - - Streets 2016 Bobcat replace 24,000 - - 24,000 - - - - Streets 2015 Milling Machine (put on bobcat)15,000 - 15,000 - - - - - Streets 2015 Hot Mix Trailer (replace 1988)30,000 - 30,000 - - - - - Streets 2017 Bucket Truck 80,000 - - - 80,000 - - - Streets 2021 Dump Truck (Replace T7) 150,000 - - - - - - - Streets 2023 Loader 110,000 - - - - - - - Streets 2017 Pickup F150, replace 2007 (P2)25,000 - - - 25,000 - - - Parks 2014 Sidewalks/Trails/Trees 7,833 7,833 - - - - - - Parks 2015 Club car (replace the 2003)4,000 - 4,000 - - - - - Parks 2017 Club car (replace the 2004)4,000 - - - 4,000 - - - Parks 2020 Ball Field Fence 54,410 - - - - - - 54,410 Parks 2020 Park Bathroom 90,000 - - - - - - 90,000 Parks 2020 Hockey/Skating rink 5,000 - - - - - - 5,000 Parks 2014 Storage Shed 2,285 2,285 - - - - - - Parks 2016 Paint ball field light towers 5,000 - - 5,000 - - - - Parks 2016 Pool Turtles 5,400 - - 5,400 - - - - Parks 2015 Pool Heaters (2)8,000 - 8,000 - - - - - Parks 2015 Lawn Mower 8,500 - 8,500 - - - - - Total 15,943$ 135,500$ 227,900$ 438,000$ -$ 27,000$ 799,410$ 2014 2015 2016 2017 2018 2019 2020 General government -$ -$ -$ -$ -$ -$ -$ Administration - - - - - 7,000 - Streets 5,825 115,000 217,500 109,000 - 20,000 - Industrial Park Marketing - - - - - - - Fire department (equipment)- - - 100,000 - - - Fire department (vehicles)- - - 225,000 - - 650,000 Emergency management - - - - - - - Parks 10,118 20,500 10,400 4,000 - - 149,410 Total 15,943$ 135,500$ 227,900$ 438,000$ -$ 27,000$ 799,410$ City of Sample, Minnesota Capital Improvement Plan - Capital Outlay Reserve Fund 275 Schedule of Projected Revenue, Expenditures and Debt 2014 To 2020 2014 2015 2016 2017 2018 2019 2020 Revenue Capital Levy 11,695$ 208,056$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000 $ Potential reduction of levy - (98,000) (175,000) (140,000) (98,000) (75,000) (50,000) Net Capital Levy 11,695 110,056 75,000 110,000 152,000 175,000 200,000 Equipment Certificates (potential)- - - 225,000 - - 600,000 Interest 4,358 - 4,105 2,617 1,613 3,149 4,661 Total Revenue 16,053 110,056 79,105 337,617 153,613 178,149 804,661 Total Expenditures (15,943) (135,500) (227,900) (438,000) - (27,000) (799,410) Net Change in cash balance 110 (25,444) (148,795) (100,383) 153,613 151,149 5,251 Beginning balance 435,846 435,956 410,512 261,718 161,335 314,948 466,098 Ending balance 435,956$ 410,512$ 261,718$ 161,335$ 314,948$ 466,098$ 471,349 $ Capital Projects Fund Projected Activity 13 City of Sample, Minnesota Capital Equipment Plan - Enterprise Funds Schedule of Planned Capital Outlay 2014 To 2020 2014 2015 2016 2017 2018 2019 2020 Fund Item Cost Estimated Estimated Estimated Estimated Estimated Estimated Estimated Water Mower W/S 25,000$ -$ -$ -$ -$ -$ -$ -$ Water Replace 1984 Chevy (T-6) PW & PU 20,000 - - - - 20,000 - - Water Replace Box on Pickup 20,000 20,000 - - - - - - Water Shed 150,000 - - - - - - - Sewer Replace manholes - - - - - - - Sewer Upgrade Camera equipment 15,000 - - - - - - - Sewer Replace Jetter 175,000 - - - - - - - Sewer Replace Vac Trailer 120,000 - - 15,000 15,000 - - 120,000 Sewer Purchase/Upgrade building 150,000 - - - - - - - Sewer Portable Generator 27,000 - - - - - - - Sewer W W TP generator 70,000 - - - - - 70,000 - Sewer New Camera 30,000 - - 15,000 - - - - Sewer Replace 1984 Chevy (T-6) PW & PU 20,000 - - - - 20,000 - - Sewer Replace Box on Pickup 20,000 - - - - - - - Sewer Pump Trailer 30,000 - - - - - - - - - - - - - - - 20,000$ -$ 30,000$ 15,000$ 40,000$ 70,000$ 120,000$ Summary by Fund Water 20,000$ -$ -$ -$ 20,000$ -$ -$ Sewer - - 30,000 15,000 20,000 70,000 120,000 20,000$ -$ 30,000$ 15,000$ 40,000$ 70,000$ 120,000$ 14 Tax Rates Tax Rates: Tax rates are a function of the levy and total tax base. The city tax rate is computed by dividing the city levy by the taxable tax capacity. Comparable communities are provided for reference. The increase in levy and the tax rate in 2015 relates primarily with the transfer to the Capital fund (275). 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 2013 2014 2015 2016 2017 2018 2019 2020 City of Sample Tax Rates - 2013 -2014 (Actual), 2015-2020 (Projected) Proposed additional debt levies Scheduled capital levies Scheduled debt levies General 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% City Name City Name City Name City Name City Name City of Sample Tax Capacity Rates - 2010 -2014, 2015 2010 2011 2012 2013 2014 2015 Estimated 15 General Fund Operations and All Funds Cash Balances General Fund Balance as a Percent of Revenue:Cash Balance by Planned Use (000's): The General fund fund balance should be maintained at a level to provide for adequate working capital reserves. The City has established a 50 percent target to sustain. The balances represented in this graph are categorized by the planned use and/or limitations determined by statute. $(1,000,000) $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2013 2014 2015 2016 2017 2018 2019 2020 Cash Balance by Planned Use (000's) Special revenue limited to specific purpose TIF Enterprise capital and working capital Capital projects Debt service General fund working capital $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Fund Balance Budget Target Fund Balance General Fund Balance as a Percent of Expenditures 16 Property Taxes by Type Percent of Property Taxes - General Levy and Bonds This graph highlights the percent of levy by planned use. It is notable that 46 percent of the levy is allocated to debt in 2014 and is scheduled to decrease. The overall city tax burden for a $142,700 house in 2014 is shown in the graph on the right. The overall property tax levy for a median valued house is highlighted above. Projected City Tax Impact - 2014 $142,700 home $- $1,000,000 $2,000,000 $3,000,000 2013 2014 2015 2016 2017 2018 2019 2020 Property Taxes -General Levy, Bonds and Potential Levies to Balance Projects General Bonds Capital Funds Potential to fund projects 0% 20% 40% 60% 80% 100% 120% 2013 2014 2015 2016 2017 2018 2019 2020 55%54%51%54%53%52%53%54% 45%46%43%42%43%41%40%38% Percent of Property Taxes -General Levy, Bonds and Potential Levies to Balance Projects General Bonds Capital Funds Potential to fund projects $737 $758 $754 $839 $916 $963 $999 $1,094 $- $200 $400 $600 $800 $1,000 $1,200 2013 2014 2015 2016 2017 2018 2019 2020 Projected City Tax Impact on an Median Valued Residential Property 17 Debt The above assumes no new debt. From 2013 to 2020, as presented above,The above assumes no new debt. From 2013 to 2020, as presented abov total governmental type debt is reduced from $14.8 million to $9.2 million.total enterprise fund debt is reduced from $14.9 million to $9.8 million. A reduction of approximately $5.6 million.A reduction of approximately $5.1 million. $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 2013 2014 2015 2016 2017 2018 2019 2020 Projected Governmental Debt Balances Based on Current Amortizations GO Revenue GO Potential Debt - Assumed based on CIP GO Equipment Certificates $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 2013 2014 2015 2016 2017 2018 2019 2020 Enterprise Funds Outstanding Debt Balances Water fund Sewer fund Assisted Living fund $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Debt per Capita City Name City Name City Name City Name City Name 18 Annual Debt Service Requirements Beginning in 2015, the City has approximately $1.3 million in governmental debt service requirements that are paid with tax levy, special assessments and, as shown above, transfer in from enterprise and special revenue funds. Transfers in approximate $260 thousand each year to assist in the debt service requirements. Enterprise funds pay approximately $1.1 million each year for debt service requirements for bonds recorded in the Water, Sewer, and Assisted Living funds. The Water and Sewer funds transfer approximately $220K of funds to debt service funds for their share of the bonds recorded in the Debt Service funds. $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 20 3 0 20 3 1 20 3 2 20 3 3 20 3 4 20 3 5 20 3 6 20 3 7 20 3 8 20 3 9 Governmental Debt Service Requirements Principal Interest Transfers in $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 20 3 0 20 3 1 20 3 2 20 3 3 20 3 4 20 3 5 20 3 6 20 3 7 20 3 8 20 3 9 20 4 0 Enterprise Debt Service Requirements Principal Interest Transfers out 19 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov City Council Meeting Agenda Feb. 5, 2018 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. Appearance 3.1 Presentation regarding Certificate of Achievement for Excellence in Financial Reporting for 2016 awarded by the Government Finance Officers Association. 4. Consent Agenda The Council will consider the following items, which are routine and non-controversial in nature, in a single motion: 4.1 Approval of the minutes from the following meetings: a. The regular City Council meeting on Jan. 16, 2018. b. The regular City Council work sessions on Jan. 16, 2018. 4.2 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. 4.3 Approval of a resolution accepting the following donations: a. $100 from Bonnie Bolash for the Crystal Ball. b. $200 from Crystal Business Association for the Crystal Ball. 4.4 Approval of a resolution for Northwest Metro Drug Task Force Joint Powers Agreement. 5. 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 Feb. 5, 2018 Page 2 of 4 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 civil penalties for violation of tobacco license regulations by Walgreens #5883 located at 6800 56th Ave. N. In November last year, the Police conducted a tobacco compliance check at the Walgreens at 6800 56th Avenue North. Walgreens didn’t pass the check and the employee involved pled guilty in court to sale of tobacco to a minor. This is a first violation and Section 1137.11 of the Crystal City Code provides for a civil fine in an amount up to $750 and a one day license suspension. Before imposing penalties, the Council should hear any comments from the vendor, including admission or denial of the violation. 6.3 The Council will consider civil penalties for violation of tobacco license regulations by Binge Time Marketing Corp. d/b/a Lube Liquor located at 5924 West Broadway. In November last year, the Police conducted a tobacco compliance check at Lube Liquor at 5924 West Broadway. Lube Liquor didn’t pass the check and the employee involved pled guilty in court to sale of tobacco to a minor. This is a first violation and Section 1137.11 of the Crystal City Code provides for a civil fine in an amount up to $750 and a one day license suspension. Before imposing penalties, the Council should hear any comments from the vendor, including admission or denial of the violation. 6.4 The Council will acknowledge Guy Mueller’s resignation from the Parks and Recreation Commission and consider a resolution of appreciation for his service. Parks and Recreation Commissioner Guy Mueller has submitted his resignation from the Commission, effective immediately. However, he intends to continue serving as Crystal’s representative on the Bassett Creek Watershed Management Commission and stay involved in the Crystal Fund. Because of his extensive community involvement, recommend approval of the resolution of appreciation of his service. 6.5 The Council will consider a resolution authorizing a financing program for installation of fire suppression systems. Late last year the City Council asked staff to research ways to assist or encourage building owners to install fire suppression systems in older commercial buildings. Staff is proposing a modification of the existing program that allows financing such improvements as a special assessment by eliminating the interest and shortening the term to 5 years. Recommend approval of the resolution authorizing this financing program. 6.6 The Council will consider a resolution approving the plans and specifications and authorizing the bid advertisement for the Bass Lake Road streetscape project. Crystal City Council Meeting Agenda Feb. 5, 2018 Page 3 of 4 Updating and reconstructing the Bass Lake Road streetscape west of Bottineau Boulevard is one project to address the Council’s priority regarding a thriving business community. The City Council has reviewed the plans for this project and final plans and specifications are now ready for bidding. Recommend approval of the plans and specifications and authorizing advertising for bids for this project. 7. Announcements a. The City Council will hold a work session with the Planning Commission on Thursday, Feb. 8 at 6:30 p.m. in Conference Room A at City Hall. b. City offices will be closed on Monday, Feb.19 for the Presidents’ Day holiday. c. The next Citizen Input Time is Tuesday, Feb. 20 at 6 p.m. in Conference Room A at City Hall. d. The next City Council meeting is Tuesday, Feb. 20 at 7 p.m. in the Council Chambers at City Hall. e. Crystal Business Association meets on Wednesday, Feb. 21 at 8:30 a.m. at St. Therese, 8000 Bass Lake Road, New Hope. f. Neighbors Recognizing Neighbors nominations are being accepted until Wednesday, Feb. 14. Forms are available on the city website and at the Crystal Community Center. Selected neighbors will be recognized at the Crystal Ball on Saturday, March 24 at the Crystal Community Center. g. 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. h. 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. i. 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. Feb. 5, 2018 Meeting Schedule Time Type of meeting Location 6:15 p.m. First City Council work session to discuss: • Finance update including capital funds and long range planning. Conference Room A 7 p.m. City Council meeting Council Chambers Crystal City Council Meeting Agenda Feb. 5, 2018 Page 4 of 4 Following the City Council meeting Economic Development Authority (EDA) to consider: • Public Hearing: Authorizing lot sale of 5573 Zane Ave. N. • Tentative acceptance of a proposal from Novak- Fleck to purchase EDA lot at 5607 Zane Ave. N. Council Chambers Following the EDA meeting Second City Council work session to discuss: • Accessory dwelling units, “tiny houses” and temporary family health care dwellings. • Potential lease agreement with Verizon Wireless to place a telecommunications tower on city property at 3200 Vera Cruz Ave. N. • Review chapter 8 proposed changes. • Constituent issues update. • New business.* • Announcements.* Conference Room A * Denotes no supporting information included in the packet. Have a great weekend. Remember the meeting is on Monday due to precinct caucuses on Tuesday. See you Monday evening. Memorandum DATE: February 5, 2018 TO: Mayor and City Council Anne Norris, City Manager FROM: Jean McGann, AEM Financial Solutions, LLC SUBJECT: 2016 Government Finance Officers Certificate of Excellence in Financial Reporting Award Background After completion of the 2016 annual audit, the City of Crystal submitted a Comprehensive Annual Financial Report (CAFR) to the Government Finance Officers Association of the United States and Canada (GFOA). The City has since been notified they are the recipient of the Certificate of Achievement for Excellence in Financial Reporting Award. This Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting and its attainment represents a significant accomplishment by the City and its management. The CAFR has been judged by an impartial panel to meet the high standards of the program, which includes demonstrating a constructive “spirit of full disclosure” to clearly communicate its financial story and motivate potential users and use groups to read the CAFR. Conclusion The City Council is requested to accept the Certificate of Achievement for Excellence in Financial Reporting for 2016 and recognize members of the Finance staff responsible for the content of this document. 3.1 3.1 3.1 3 . 1 Crystal City Council meeting minutes Jan. 16, 2018 Page 1 of 3 1.Call to Order Pursuant to due call and notice thereof, the regular meeting of the Crystal City Council was held on Jan. 16, 2018 at 7 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: Budziszewski, Dahl, Deshler, Kolb, LaRoche, Parsons and Adams. City staff present: Assistant City Manager/Human Resources Manager K. Therres, City Attorney T. Gilchrist, Police Chief S. Revering, City Engineer/Public Works Director M. Ray, Recreation Director J. Elholm and City Clerk C. Serres. Pledge of Allegiance Cub Scout Pack 751 conducted a flag ceremony and led the Pledge of Allegiance. 2.Approval of Agenda The Council considered approval of the agenda. Moved by Council Member Dahl and seconded by Council Member Parsons to approve the agenda. Motion carried. 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 Jan. 2, 2018. b.The regular City Council work sessions on Jan. 2, 2018. c.The regular City Council work session on Jan. 11, 2018. 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 Resolution No. 2018-21, accepting the following donations: a.$1,000 from Crystal Lions Club for Crystal Recreation (performing arts). b.$165.75 from donation boxes for Crystal Police (K9 Unit). c.$250 from North Ridge Operator, LLC for Crystal Recreation (senior holiday luncheon). d.$1,000 from West Metro Fire-Rescue District for Crystal Recreation (Becker Park concerts). e.$5,000 from West Metro Fire-Rescue District for Crystal Frolics. 3.4 Approval of Resolution No. 2018-22, adopting the Council rules. 4.1(a) Crystal City Council meeting minutes Jan. 16, 2018 Page 2 of 3 3.5 Approval of Resolution No. 2018-23, for a Master Subscriber Agreement for MN Court Data Services for Government Agencies for city prosecutor, MacMillan, Wallace & Athanases, PLLC. Moved by Council Member Deshler and seconded by Council Member Parsons to approve the consent agenda. Motion carried. 4. Open Forum The following residents addressed the Council during open forum: • Carla Herling of 4831 Xenia Ave. N., concerns regarding the closure of Welcome Ave. N. • Burt Orred of 6700 60th Ave. N., regarding the Twin Lakes carp fishing event 5. Regular Agenda 5.1 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 LaRoche and seconded by Council Member Budziszewski to approve the list of disbursements over $25,000. Voting aye: Budziszewski, Dahl, Deshler, Kolb, LaRoche, Parsons and Adams. Motion carried. 5.2 The Council considered a commercial animal kennel license at 6225 42nd Ave. N., submitted by Gregory Frahm-Gilles for Access Veterinary Care. City Clerk C. Serres and applicant Gregory Frahm-Gilles addressed the Council. Moved by Council Member Budziszewski and seconded by Council Member LaRoche to approve the commercial kennel license at 6225 42nd Ave. N., submitted by Gregory Frahm-Gilles for Access Veterinary Care. Voting aye: Budziszewski, Dahl, Deshler, Kolb, LaRoche, Parsons and Adams. Motion carried. 5.3 The Council considered a resolution to authorize purchase of three squad cars. Police Chief S. Revering addressed the Council. Moved by Council Member Deshler and seconded by Council Member Budziszewski to adopt the following resolution, the reading of which was dispensed with by unanimous consent: RESOLUTION NO. 2018 – 24 RESOLUTION APPROVING POLICE EQUIPMENT REVOLVING FUND EXPENDITURE FOR PURCHASE OF THREE POLICE PATROL UTILITY VEHICLES (Squad #’s: 211, 215, & 216) 4.1(a) Crystal City Council meeting minutes Jan. 16, 2018 Page 3 of 3 Voting aye: Budziszewski, Dahl, Deshler, Kolb, LaRoche, Parsons and Adams. Motion carried, resolution declared adopted. 5.4 The Council considered a resolution to authorize purchase of 16 body cameras. Police Chief S. Revering addressed the Council. Moved by Council Member Budziszewski and seconded by Council Member LaRoche to adopt the following resolution, the reading of which was dispensed with by unanimous consent: RESOLUTION NO. 2018 – 25 RESOLUTION APPROVING POLICE EQUIPMENT REVOLVING FUND EXPENDITURE FOR PURCHASE OF 16 BODY CAMERAS AND OTHER NECESSARY EQUIPEMENT FOR INSTALLATION PURPOSES Voting aye: Budziszewski, Dahl, Deshler, Kolb, LaRoche, Parsons and Adams. Motion carried, resolution declared adopted. 5.5 The Council considered approval of a contract with the city manager. Assistant City Manager K. Therres addressed the Council. Moved by Council Member Deshler and seconded by Council Member Parsons to approve the contract with city manager. Voting aye: Budziszewski, Dahl, Deshler, Kolb, LaRoche, Parsons and Adams. Motion carried. 6. Announcements The Council made several announcements about upcoming events. 7. Adjournment Moved by Council Member Budziszewski and seconded by Council Member Deshler to adjourn the meeting. Motion carried. The meeting adjourned at 7:35 p.m. __________________________________ Jim Adams, Mayor ATTEST: _________________________________________ Chrissy Serres, City Clerk 4.1(a) Crystal City Council first work session minutes Jan. 16, 2018 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 6:32 p.m. on Jan. 16, 2018 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: Budziszewski, Dahl, Deshler, Kolb, LaRoche, Parsons and Adams. City staff present: Assistant City Manager/Human Resources Manager K. Therres, City Attorney T. Gilchrist, Communications Coordinator M. Peterson, City Engineer/Public Works Director M. Ray, Community Development Director J. Sutter, Police Chief S. Revering, Recreation Director J. Elholm and City Clerk C. Serres. II.Agenda The Council and staff discussed the following agenda item: 1.Communications update III.Adjournment The work session adjourned at 6:52 p.m. ________________________________ Jim Adams, Mayor ATTEST: Chrissy Serres, City Clerk 4.1(b) Crystal City Council second work session minutes Jan. 16, 2018 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 7:42 p.m. on Jan. 16, 2018 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: Budziszewski, Dahl, Deshler, Kolb, LaRoche, Parsons and Adams. City staff present: Assistant City Manager/Human Resources Manager K. Therres, City Attorney T. Gilchrist, City Engineer/Public Works Director M. Ray, Community Development Director J. Sutter, Police Chief S. Revering and City Clerk C. Serres. II.Agenda The Council and staff discussed the following agenda items: 1.Review chapter 9 proposed changes 2.Financing for fire suppression systems 3.Blue Line quarterly update 4.City manager monthly update 5.Constituent issues update 6.New business 7.Announcements III.Adjournment The work session adjourned at 8:59 p.m. ________________________________ Jim Adams, Mayor ATTEST: Chrissy Serres, City Clerk 4.1(b) Page 1 of 2 City of Crystal Council Meeting February 5, 2018 Applications for City License Rental – New 5203 Angeline Ave N – Abdirahman Adam (Conditional) 4609 Hampshire Ave N – Maggie Archer (Conditional) 3317 Welcome Ave N – Daniel & Angelica Gil (Conditional) Rental – Renewal 5756 Brunswick Ave N – Michael Mohinani (Conditional) 4321 Colorado Ave N – James & Alice Baker 4337 Colorado Ave N – Stephanie LaFave 3000 Douglas Dr N – Minnesota Senior Living (Conditional) 6609 Dudley Ave N – Kent McKinnon (Conditional) 5644 Elmhurst Ave N – Gene Posthumus 6504-6510 Fairview Ave N – Leo T Begin 5009 Florida Ave N – Toby & Claudia Carrillo 6160 Florida Ave N – Clint & Jennifer Schumann (Conditional) 5306 Hampshire Ave N – Kim Frye (Conditional) 2726-2728 Jersey Ave N – Thomas & Alice Conover 5249 Jersey Ave N – Adesah LLC 6034 Jersey Ave N – JMW Investments 5228 Kentucky Ave N – Michael Mills (Conditional) 3404 Lee Ave N – Delavon LaMoore (Conditional) 5413 Maryland Ave N – Ling Feng (Conditional) 5640 Nevada Ave N – R & B Management II LLC (Conditional) 5430 Orchard Ave N – Joseph & Joan McCusker 5816 Orchard Ave N – IH3 Property Minnesota LP (Conditional) 3533 Quail Ave N – Adrian & Veronica Jimenez (Conditional) 3432 Regent Ave N – Bin Wang 5607 Rhode Island Ave N – Anthony Otis (Conditional) 5424 Toledo Ave N – JDA Group LLC 5557 Unity Ave N – Community Involvement Programs (Conditional) 3519 Welcome Ave N – Stephen Burson 5762 West Broadway – A M Conter & P Dahle 4856 Yates Ave N – JDA Group LLC 3149 Yukon Ave N – Home Share (Conditional) 6012-6016 36th Ave N – Stephan Good (Conditional) 7009 36th Ave N – Kathryn Hammerseng et al (Conditional) 5016 52nd Ave N – Iasis II LLC (Conditional) Sign Hanger Spectrum Sign Systems 5680 Flint Trail Wyoming, MN 55092 Tobacco Times Tobacco, LLC (Mohamed Saleh, owner) – 6016 42nd Ave N (pre-approved by Assistant City Manager Kim Therres on 1/17/2018) 4.2 Page 2 of 2 Tree Trimmer A to Z Tree Care 37880 Skyview Rd Hillman, MN 56338 Elijah’s Tree Care LLC 745 Orchard Park Dr Orono, MN 55356 Midwest Tree Experts P O Box 61 Chaska, MN 55318 Northeast Tree Inc 2124 Marshall St NE Ste #3 Minneapolis, MN 55418 4.2 CITY OF CRYSTAL RESOLUTION NO. 2018 - RESOLUTION ACCEPTING DONATIONS FROM BONNIE BOLASH AND CRYSTAL BUSINESS ASSOCIATION 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 donations: Donor Purpose Amount Bonnie Bolash Crystal Ball $100 Crystal Business Association Crystal Ball $200 And BE IT FURTHER RESOLVED that the Crystal City Council sincerely thanks the above-named for their generous donations. Dated: Feb. 5, 2018 By: __________________________ Jim Adams, Mayor ATTEST: __________________________ Chrissy Serres, City Clerk 4.3 CCCRRRYYYSSSTTTAAALLL PPPOOOLLLIIICCCEEE DDDEEEPPPAAARRRTTTMMMEEENNNTTT “Service with Compassion and Integrity” TO: Mayor and Council Members FROM: Stephanie K. Revering, Chief of Police CC: Anne Norris, City Manager DATE: January 31, 2018 SUBJECT: Northwest Metro Drug Task Force JPA ___________________________________________________________________________ MMEEMMOORRAANNDDUUMM As you are aware, the Crystal Police Department has partnered with the Northwest Metro Drug Task Force (NWMDTF) for the last several years. Recently, the City of Golden Valley decided to no longer participate in the NWMDTF which means we had to update the Joint Powers Agreement. Attached is the updated Joint Powers Agreement and the Resolution. As always, please let me know if you have any questions. Thanks. 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 NORTHWEST METRO DRUG TASK FORCE AGREEMENT CITY OF CRYSTAL The Crystal City Council duly approved this Agreement on the 5th day of February, 2018. Approved as to form City of Crystal And legality: By:______________________ ___________________________ Its Mayor Crystal City Attorney And:_____________________ Its City Manager 4.4 RESOLUTION NO. 2018- RESOLUTION AUTHORIZING EXECUTION OF THE NORTHWEST METRO DRUG TASK FORCE JOINT POWERS AGREEMENT WHEREAS, the Crystal Police Department is part of the Northwest Metro Drug Task Force (NWMDTF), which is comprised of the following cities: New Hope, Crystal, Robbinsdale, Plymouth, Brooklyn Park, and Brooklyn Center AND WHEREAS, the cities within the NWMDTF are entering into a Joint Powers Agreement as directed by the State of Minnesota AND WHEREAS, the Joint Powers Agreement requires a signed agreement between the six cities prior to its enactment. NOW, THEREFORE, BE IT RESOLVED that the Crystal City Council hereby authorizes the Crystal Police Department/City of Crystal to enter into a Joint Powers Agreement between the Northwest Metro Drug Task Force (NWMDTF) Adopted by the Crystal City Council this 5th day of February 2018. __________________________ Jim Adams, Mayor ATTEST: _________________________ Chrissy Serres, City Clerk 4.4 G:\Tanya\Accts Pay\Checks over $25,000 Memo.xls DATE:January 31, 2018 TO:Anne Norris, City Manager City of Crystal City Council FROM:Jean McGann, Acting Finance Director RE:Expenditures over $25,000 Payee Amount Crystal Leased Housing Assn Feb 1, 2018 Cavanagh TIF Note payment $171,892.89 HealthPartners Inc Feb 2018 Health insurance premiums $96,895.00 Hennepin County Treasurer First 1/2 of 2018 Assessment fee $89,000.00 IRS - EFTPS Federal & FICA withholding taxes for 1/12/18 pay date $59,207.22 Metropolitan Council Enviro Serv Feb 2018 Wastewater cost $127,413.34 Motorola Solutions Inc 4 Mobile radios & 44 portable radios for Police $210,113.75 Palda & Sons Inc Nov 2017 Phase 15 Twin Oak Park street reconstruction $36,531.64 PERA Employee and city required contributions for 1/12/18 pay date $53,583.32 PERA Employee and city required contributions for 1/26/18 pay date $55,311.80 SEH Inc Nov 2017 Phase 16 Skyway street reconst & Sanitary/enviro monitor $38,459.42 SEH Inc Dec 2017 Bass Lake Road streetscape $25,666.74 Shingle Creak WMO 2018 Member assessment $27,741.22 West Metro Fire Rescue District Jan 2018 Fire budget allocation $95,305.71 $1,087,122.05 Description 6.1 6.2 6.2 6.2 6.3 6.3 6.3 6.4 6.4 PAGE 1 OF 5 _____________________________________________________________________ FROM: John Sutter, Community Development Director _____________________________________________________________________ DATE: February 1, 2018 TO: Anne Norris, Executive Director (for February 5 Council meeting) SUBJECT: Consider a resolution authorizing a financing program for installation of fire suppression systems A. BACKGROUND In 1996 the city adopted a policy enabling private parties to finance theinstallation of fire suppression systems as a special assessment. In 2005 thepolicy was broadened to include other types of fire protection equipment. The 1996 and 2005 policy resolutions are attached along with the petition form and aspecific project resolution. In fall 2017 Councilmembers expressed an interest in the city doing more toencourage the installation of these systems, in part due to the number of oldbuildings in the city being passed over for new uses due to code-required sprinkler systems. B. PROGRAM OUTLINE Staff recommends a modification of the existing program that would eliminate theinterest for such special assessments but also shorten the term to 5 years. Public PurposeTo reduce the potential for loss of life, not only for building occupants but alsofirst responders To preserve and enhance the value of real propertyTo prevent the emergence of blight in older buildingsTo improve the utilization of older buildings to create jobs and economicopportunities To counteract the combination of physical constraints, building age andmarket forces that make fire sprinklers infeasible for some properties COUNCIL STAFF REPORT Financing for Fire Suppression 6.5 PAGE 2 OF 5 Assumptions  Estimated commercial building retrofit cost of $6,000 fixed costs plus $3.50 psf (it’s approx. $2 psf for new residential construction)  Estimated cost to install new water service is $3,000 - $20,000 depending on type & location of water main, other utilities present, etc.  Estimated road restoration cost is $2,000 - $15,000 depending on location of water main, type of road, etc. Proposed Parameters for City Financing  Payback via a special assessment requested by the property owner No change from current program.  5 year payback term (10 semiannual payments due with property taxes) The current program has a 10 year term (20 semiannual payments).  No interest charge The current program applies the same interest we charged for street or alley special assessments, most recently 4.5%.  City financing would be limited to 25% of the parcel’s most recent Henn Co Estimated Market Value, or 25% of the parcel’s appraised value if the property is tax-exempt The current program has no limits based on the property’s value. The new program adds these limits to further reduce the already-low risk of default through tax forfeiture.  City financing would also be capped at $100,000 per parcel The current program has no per-parcel maximum for city financing. Because the new program will be self-financed by the EDA fund, the $100,000 cap would limit city funds being locked up by any one project.  Minimum project size is $10,000 The current program has no minimum project size, but there should be one to ensure efficient use of staff time which is not being paid for by users of the program.  City self-finances out of EDA fund balance Assistance with installation of fire suppression systems is an eligible EDA expenditure under M.S. 469.002, Subd. 14, (5)(i) and (ii). Special assessment repayments will be credited to the EDA fund.  City may deny an application or suspend the program (not accept new applications) if it determines that the fund balance is getting too low No change from current program.  City may modify the program to charge interest for new applications if the interest rate environment changes The basic architecture of the special assessment process allows for interest to be charged, so if the interest rate environment changes, a future Council could amend the policy by resolution at that time.  Applicant must provide $2,000 escrow ($5,000 if the property is tax exempt and we have to get an appraisal) to cover the city’s actual expenses (city attorney, recording fees, appraisal cost if applicable, etc.) The current program does not have an escrow requirement to ensure that city expenses will be paid by the applicant. 6.5 PAGE 3 OF 5 C. HYPOTHETICAL PROJECTS Each property has important differences in building size, property value and other characteristics. These three hypothetical scenarios are merely intended to illustrate how the program might apply to different types of property. These scenarios are not intended to imply that any of these properties need to install fire suppression systems or use the city’s financing program to do so. 6404 56th (Top Hat Theater, includes basement) - Estimated cost $85,400 ($50,400 sprinklering + $20,000 water service + $15,000 road restoration) - Maximum city financing: $62,600 (25% of $248,000 EMV) - Owner cash portion: $22,800 (estimated cost less amount to be financed as a special assessment) - Owner semiannual payment: $6,260 (twice per year for 5 years) 6016 42nd (former Emerald Cleaners, currently vacant) - Estimated cost $49,400 ($14,400 sprinklering + $20,000 water service + $15,000 road restoration) - Maximum city financing: $47,750 (25% of $191,000 EMV) - Owner cash portion: $1,650 (estimated cost less amount to be financed as a special assessment) - Owner semiannual payment: $4,775 (twice per year for 5 years) 6.5 PAGE 4 OF 5 3537 Douglas Dr (hypothetical expanded Milton’s) - Estimated cost $57,750 ($22,750 sprinklering + $20,000 water service + $15,000 road restoration) - Maximum city financing: $57,750 (25% of $862,000 EMV would be $215,500) - Owner cash portion: $0 (estimated cost less amount to be financed as a special assessment) - Owner semiannual payment: $5,775 (twice per year for 5 years) 6.5 PAGE 5 OF 5 E. REQUESTED COUNCIL ACTION Staff recommends adoption of the attached resolution ATTACHMENTS - Proposed resolution for Council action - 1996 resolution - 2005 resolution - Current petition form - Example of a specific project resolution 6.5 516266v2 TJG CR205-30 CITY OF CRYSTAL MINNESOTA RESOLUTION NO. 2018-________ RESOLUTION ESTABLISHING A POLICY FOR SPECIAL ASSESSMENTS FOR FIRE PROTECTION SYSTEMS WHEREAS, the City of Crystal, pursuant to the joint powers agreement establishing the West Metro Fire-Rescue District, is required to adopt a fire protection system requirements, which it has done in Crystal City Code, Section 400.01, subdivision 3(b)(1); WHEREAS, the City Council recognizes that complying with the fire protection systems requirements can place a financial strain on a business desiring to expand its existing business or to establish a new business in the city; WHEREAS, Minnesota Statues, section 429.021 provides a method by which owners may petition the City for fire protection systems and to assess the costs of providing such systems; and WHEREAS, the City Council has previously acted by Resolution No. 96-68 and Resolution No. 2005-50 to establish a policy for assessing for fire protection systems and now desires to renew that process through the adoption of a new policy. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal, Minnesota that it hereby adopts the following as its policy for special assessments for fire protection systems: 1. Petition. An owner may submit a petition to the City under Minnesota Statutes, section 429.031, subdivision 3 to construct, reconstruct, alter, extend, operate, maintain, and promote fire protection systems in existing buildings as provided in Minnesota Statutes, section 429.021, subdivision 1(15). The petition must comply with the requirements of the statute and include plans, specifications, and a cost estimate for the fire protection system. Petitions for projects estimated to cost less than $10,000 shall not be accepted. An escrow in the amount of $2,000 for a taxable parcel, or $5,000 for a non-taxable parcel, must be submitted with the petition. The purpose of the escrow is to reimburse the City for the costs it incurs to process and act on the petition. The City may draw upon the escrow as needed to reimburse itself for its costs and shall return any unused portion of the escrow to the petitioner without interest. 2. Construction. The petitioner shall be responsible for contracting for the actual installation of the fire protection system. However, the City shall have the final right to disapprove any contractor selected by the owner. 3. Assessment. The City shall assess the petitioner for the costs of the fire protection system in accordance with this section and all applicable laws. The City’s general assessment policy 6.5 516266v2 TJG CR205-30 shall apply to assessments made for fire protection systems, except that to the extent there are any inconsistencies the provisions of this policy shall be controlling. (a) The amount to be specially assessed for the project shall not exceed any of the following: (1) The amount of the construction estimate and any interest charges, if applicable; (2) No more than 25% of the parcel’s most recent estimated market value as determined by Hennepin County for taxable property, or 25% of the parcel’s appraised value for tax-exempt property; or (3) No more than $100,000 per parcel. The petitioner shall be responsible for any costs that exceed any of these limits. (b) The petitioner must waive all rights to a public hearing and any appeal of the special assessment adopted by the City Council. (c) No payment shall be made by the City for installation until the work is completed and finally approved by the City, and the assessment is adopted by the City Council. (d) No special assessment shall be made for a period of more than 5 years, except as otherwise determined by the City Council. (e) No interest will be charged on the amount assessed. (f) If the petitioner requests the abandonment of the special assessment project, all City costs incurred shall be reimbursed by the petitioner. (g) Unless warranted by special circumstances, all petitions for the special assessment of the project must be received and acted upon by the City Council prior to the start of any fire protection system installation. 4. Determination. Consideration of any petition made under this policy is subject to a determination by the City Council, in its sole discretion, that sufficient funds are available for the project. The City Council may deny any petition if it determines it does not have sufficient funds available for the project. City staff shall periodically advise the City Council with regard to the availability of appropriate funds. BE IT FINALLY RESOLVED, that Resolution No. 96-68 and Resolution No. 2005-50 are hereby repealed. Adopted by the Crystal City Council this ____ day of _______________, 2018. 6.5 516266v2 TJG CR205-30 ____________________________ Jim Adams, Mayor ATTEST: ___________________________ Chrissy Serres, City Clerk 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 PAGE 1 OF 3 _____________________________________________________________________ FROM: John Sutter, Community Development Director _____________________________________________________________________ DATE: February 1, 2018 TO: Anne Norris, City Manager (for February 5 Council meeting) SUBJECT: Consider a resolution approving plans & specifications and authorizing bid advertisement for reconstruction of the Bass Lake Road Streetscape RECAP 3/28/2018 Council authorized commencement of design work and SEH contract. 6/22/2017 Staff and design consultant SEH held a design workshop at the Becker Park building to gather input on a first draft of the streetscape concept. 7/18/2017 City Council reviewed and discussed a draft concept. 8/15/2017 City Council reviewed and discussed a final concept (Attachment A) before staff and SEH proceeded to detailed design. 11/21/2017 City Council reviewed reduced scope, detailed design and cost estimate. 12/15/2017 80% plans completed for review by Hennepin County and city staff. 2/1/2018 County and city review and approval of final design is complete. SIGNIFICANT PROJECT ELEMENTS A 12-space on-street parallel parking bay will be added in front of the easterly blockof buildings (6316-6418 56th) with a valley gutter between the parking bay and theadjacent traffic lane. COUNCIL STAFF REPORT Bass Lake Road Streetscape Plans & Specs and Bid Advertisement 6.6 PAGE 2 OF 3  The sidewalk on the north side of 56 th Avenue will be completely reconstructed from Elmhurst Avenue to the old Hampshire Avenue alignment by Nokomis Shoes, and also along the west side of Elmhurst Avenue from 56 th Avenue to the alley.  Miscellaneous fixtures (5 benches, 6 bike racks, 4 dual trash receptacles, etc.) will be installed.  The paved boulevard with colored concrete (gray rectangle pattern) will provide a buffer along approx. 60% of the corridor where there isn’t space for landscaping along the roadway.  The south curb of the large parking lot will be shifted north a few feet to provide space for the new sidewalk plus new landscaping.  The existing high pressure sodium (HPS) parking lot lighting will be replaced with new light emitting diode (LED) fixtures to improve light levels and security, especially in the large parking lot (6422-6514 56 th).  The existing HPS roadway lighting would be salvaged and reinstalled with new LED luminaires on both sides of Bass Lake Road from the BNSF rail corridor west to the old Hampshire Avenue alignment.  New crosswalk markings will be installed on all quadrants of the Sherburne - 56 th intersection. PROPOSED SCHEDULE 2/5 Council resolution approving plans & specifications and bid advertisement 2/15 Bid advertisement published in official newspaper (available online sooner) 3/1 Bid Opening 3/6 Contract Award; final decision to proceed - Council resolution awarding the contract - EDA resolutions authorizing construction engineering contract and expenditure of available increment from TIF District #2151 for construction Mar. Contract documents; pre-construction meeting Apr. Contractor mobilization May Construction Begins 7/20 Construction Substantially Complete (before Crystal Frolics) 6.6 PAGE 3 OF 3 PROPOSED FINANCING EXPENDITURE ESTIMATED PROPOSED SOURCES CATEGORY COST Mobilization / Traffic Mgmt 17,000 Removals 63,803 Civil (concrete, etc.) 213,156 Landscaping Beds 50,002 Plantings 38,010 Streetscape fixtures 28,700 Electrical (lighting) 141,418 Construction Subtotal 552,089 10% Contingency 55,209 Construction Total 607,298 200,000 330,000 77,298 Construction Engineering 45,547 45,547 TOTAL PROJECT COST 652,845 200,000 330,000 45,547 77,298 HENN CO TIF #2151 EDA STREET LIGHT UTILITY ATTACHMENTS  Resolution for Council consideration  Proposed bid advertisement  Excerpts from design plans REQUESTED COUNCIL ACTION City Council action on the attached resolution is requested. 6.6 RESOLUTION NO. 2018 - ______ APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS BASS LAKE ROAD STREETSCAPE PROJECT #2018-07 WHEREAS, at the direction of the City of Crystal, Short Elliot Hendrickson Inc. has prepared plans and specifications and a bid advertisement for reconstruction of the streetscape on the north side of 56th Avenue North from Elmhurst Avenue North to a point approximately 1,060 feet west of Elmhurst Avenue North, and on the west side of Elmhurst Avenue North from 56 th Avenue North to a point approximately 125 feet north of 56 th Avenue North, collectively the “Bass Lake Road Streetscape”; and WHEREAS, the plans and specifications are on file at Crystal City Hall, 4141 Douglas Drive North, Crystal, Minnesota; and WHEREAS, the plans and specifications have been completed in consultation with Hennepin County; and WHEREAS, the City of Crystal finds that the existing streetscape is in a blighted condition and reconstruction is necessary. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CRYSTAL, MINNESOTA: 1. The plans and specifications for the Bass Lake Road Streetscape are hereby approved. 2. The advertisement for bids for construction of said improvements is hereby ordered. Adopted by the Crystal City Council this 5 th day of February, 2018. Jim Adams, Mayor ATTEST: ____________________________ Christina Serres, City Clerk 6.6 City of Crystal Project No. 2018-07 AB - 1 ADVERTISEMENT FOR BIDS 2018 – Bass Lake Road Streetscape City of Crystal, Minnesota City Project No. 2018-07 TO WHOM IT MAY CONCERN: Notice is hereby given that sealed bids will be received by the City Engineer until 11:00 AM local time, on Thursday March 1, 2018, at the City Hall, at which time they will be publicly opened and read aloud, for the furnishing of all labor, material, and equipment for the construction of the following estimated major quantities of work: Item Quantity Concrete Pavement 9 inches 150 SY 4-inch Concrete Walk / Walk Special 15,000 SF Streetscape Amenities 20 EA Led Pendant Luminaire 10 EA Pavement Markings 1,800 LF Trees, Shrubs and Perennials 700 EA Irrigation System 1 LS Bids shall be on the forms provided for that purpose and according to the Contract Documents prepared by Short Elliott Hendrickson Inc., 10901 Red Circle Drive, Suite 300, Minnetonka, Minnesota 55343, dated February 15, 2018. The Bidding Documents may be viewed for no cost at http://www.sehinc.com by selecting the Project Bid Information link at the bottom of the page and the View Plans option from the menu at the top of the selected project page. Bid forms and Contract Documents may be seen at the office of the Director of Public Works, 4141 Douglas Drive North, Crystal, Minnesota 55422. Digital copies of the Bidding Documents are available at http://www.sehinc.com for a fee of $30. These documents may be downloaded by selecting this project from the PROJECT BID INFORMATION link and by entering eBidDocTM Number 5540934 on the SEARCH PROJECTS page. For assistance and free membership registration, contact QuestCDN at 952.233.1632 or info@questcdn.com. Paper copies of the Bidding Documents may be obtained from Docunet Corp. located at 2435 Xenium Lane North, Plymouth, MN 55441 (763.475.9600) for a non-refundable fee of $75.00. 6.6 Advertisement for Bids City of Crystal City Project No. 2018-07 City of Crystal Project No. 2018-07 AB - 2 Bid security in the amount of 5% of the bid must accompany each bid in accordance with the Instructions to Bidders. A Contractor responding to these Bidding Documents must submit to the City a signed statement under oath by an owner or officer verifying compliance with each of the minimum criteria in Minnesota Statutes, section 16C.285, subdivision 3. Bidders are required to submit information indicating they have practical experience of the particular construction work bid upon, and that they have the ability and resources to complete the proposed work in a manner satisfactory to the Owner. A contract award will only be made to a bidder meeting the minimum contractor qualifications as stated within the contract specifications. Bids shall be directed to the City Engineer, securely sealed and endorsed upon the outside wrapper, “BID FOR 2018 – BASS LAKE ROAD STREETSCAPE, CRYSTAL, MINNESOTA, CITY PROJECT NO. 2018-07”. The City of Crystal reserves the right to reject any and all bids, to waive irregularities and informalities therein and to award the Contract in the best interests of the City. Christina Serres City Clerk City of Crystal, Minnesota Publish: Crystal Sun Post News: February 15, 2018 Finance and Commerce: February 15, and February 22, 2018 6.6 PLANTING BED (TYP),SEE ENLARGED PLANTINGPLANS SHEETS P-2 & P-3 EXISTINGBUILDING, TYP L I M I T S O F N E W 4 " C O N C R E T E W A L K A T E X I S T I N G J O I N T , T Y P 4 " C O N C R E T E W A L K S P E C I A L ( T Y P ) , S E E S H E E T S D - 2 F O R D E T A I L E D L A Y O U T S A N D N O T E 1 C O N C R E T E C U R B V 4 ( T Y P ) , S E E 1 / S D - 1 4 0 . 0 ' R.O.W. B A S S L A K E R O A D ( C O U N T Y R O A D 1 0 ) P L A N T I N G B E D ( T Y P ) , S E E E N L A R G E D P L A N T I N G P L A N S S H E E T S P - 2 & P - 3 TREE PLANTING(TYP), SEE PLANTINGPLAN SHEET P-1 2L-1 3 L - 1 P L A N T I N G B E D ( T Y P ) , S E E E N L A R G E D P L A N T I N G P L A N S S H E E T S P - 2 & P - 3 R E L O C A T E D M E T R O T R A N S I T B U S S T O P , S E E S I G N I N G & S T R I P I N G P L A N SEE PED RAMPSTANDARDPLANS, TYP S E E P E D R A M P S T A N D A R D P L A N S , T Y P P L A N T I N G B E D ( T Y P ) , S E E E N L A R G E D P L A N T I N G P L A N S S H E E T S P - 2 & P - 3 C O N C R E T E C U R B V 4 ( T Y P ) , S E E 1 / S D - 1 CONTRACTIONJOINT, TYP(SEE NOTE 2)EXPANSIONJOINT, TYP A L I G N C O N T R A C T I O N J O I N T S I N 4 " C O N C R E T E W A L K W I T H C O N T R A C T I O N J O I N T S I N 4 " C O N C R E T E W A L K S P E C I A L , T Y P 4 " C O N C R E T E W A L K S P E C I A L ( T Y P ) , S E E S H E E T S D - 2 F O R D E T A I L E D L A Y O U T S A N D N O T E 1 E X P A N S I O N J O I N T , T Y P R E L O C A T E D S T R E E T L I G H T F I X T U R E ( T Y P ) , S E E N O T E 7 EXPANSIONJOINT, TYPEXISTING STREETLIGHT, SEE NOTE 7BIKE RACK, QTY (2),SEE DETAIL 4/SD-13.0'5.1'45°FROM BACK OF CURB, TYP 1.5',TYP45°0.5'12.0'7.0'5.0' B E N C H , Q T Y ( 1 ) , S E E D E T A I L 2 / S D - 1 1 3 5 ° 7 6 . 0 ' 6 . 0 ' 7.4'RECYCLING UNIT,QTY (1), SEE DETAIL 3/SD-1WASTE RECEPTACLE, QTY (1),SEE DETAIL 3/SD-1 2 0 . 0 ' 1 3 5 ° 2 0 . 0 ' 6 . 0 ' 6 . 0 ' 26.4'(FROM WEST)19.2'(FROMNORTH)DATUM: O.C.EXISTINGHYDRANT0.5' 6 . 0 ' 6 . 0 ' 6 . 0 ' 1 3 5 ° 4 . 0 ' , N O M . 8.2'2.4'4.5'2.6' 1 1 . 7 ' 8.6' 8 . 4 ' 8 . 1 ' 8 . 1 ' 6.0'135° 2 2 7 . 3 ' 45°15.7'10.0'6.5'6.5'9.2' 1 9 5 . 5 ' 1 2 . 0 ' B E N C H , Q T Y ( 1 ) , S E E D E T A I L 2 / S D - 1 4 . 0 ' 5 . 5 ' 0 . 5 ' 1 1 4 ° 1 1 . 0 ' 6 . 5 ' 1 0 . 0 ' 9 . 2 ' 4 5 ° R E C Y C L I N G U N I T , Q T Y ( 1 ) , S E E D E T A I L 3 / S D - 1 W A S T E R E C E P T A C L E , Q T Y ( 1 ) , S E E D E T A I L 3 / S D - 1 4. 0 ' , NO M . 1 . 2 ' 2 . 6 ' 2 . 5 ' 6 . 5 ' 11.7'8.1'8.4'8.4' 9 . 0 ' 8 . 7 ' L E G E N D : S T R E E T S C A P E B I K E R A C K W A S T E R E C E P T A C L E R E C Y C L I N G U N I T P R E F A B R I C A T E D B E N C H , 6 - F O O T R E L O C A T E D O R N E W L I G H T F I X T U R E ( S E E L I G H T I N G P L A N & D E T A I L S ) 4 S D - 1 4 " C O N C R E T E W A L K 4 " C O N C R E T E W A L K S P E C I A L 3 S D - 1 3 S D - 1 2 S D - 1 C O N C R E T E C U R B V 4 1 S D - 1 1 S D - 2 2 S D - 2 3 S D - 2 T R U N C A T E D D O M E S A T P E D E S T R I A N R A M P ( S E E P E D R A M P S T A N D A R D P L A N S ) C A N O P Y T R E E O R N A M E N T A L T R E E P L A N T I N G A R E A S S E E D I N G A R E A S ( T U R F ) 1 P - 1 2 P - 1 1 P - 1 2 P - 1 1 P - 2 2 P - 2 1 P - 3 2 P - 3 2 P - 1 DESIGN TEAM DESIGNER:DRAWN BY:CHECKED BY:KWNO.BYREVISIONSDATE I H E R E B Y C E R T I F Y T H A T T H I S P L A N W A S P R E P A R E D B Y M E O R U N D E R M Y D I R E C T S U P E R V I S I O N A N D T H A T I A M A D U L Y L I C E N S E D L A N D S C A P E A R C H I T E C T U N D E R T H E L A W S O F T H E S T A T E O F M I N N E S O T A . C I T Y o f C R Y S T A L P R I N T E D N A M E L i c . N o . S I G N A T U R E K A R Y N M . L U G E R 2 6 4 2 3 D a t e : 0 2 / 0 9 / 2 0 1 8 P H O N E : 9 5 2 . 9 1 2 . 2 6 0 0 1 0 9 0 1 R E D C I R C L E D R I V E S U I T E 3 0 0 M I N N E T O N K A , M N 5 5 3 4 3 - 9 3 0 2 w w w . s e h i n c . c o m F I L E N O . D A T E B A S S L A K E R O A D S T R E E T S C A P E 0 2 / 0 1 / 2 0 1 8 1 4 1 8 7 7 4 6 95% CONSTRUCTION DRAWINGSKLKL 0feetscale204020 MATCHLINE: SEE SHEET L-2 W E S T L I M I T S T O S H E R B U R N E A V E L - 1 S T R E E T S C A P E L A Y O U T P L A N 3 2 NOTES:1. 4" CONCRETE WALK SPECIAL SHALL BE FURNISHED AND INSTALLED BY MNDOTPRE-QUALIFIED COLORED CONCRETE CONTRACTOR/ INSTALLER MEETING THEREQUIREMENTS UNDER MNDOT 2521.3.D.1.b COLORED CONCRETE. REFER TO SPECIALPROVISIONS LS FOR ADDITIONAL INFORMATION ON 4" CONCRETE WALK SPECIAL.2. CONTRACTOR TO PROVIDE CONTRACTION JOINT PATTERN AS SHOWN. ALLCONTRACTION JOINTS SHALL BE SAW CUT. VERIFY CONTRACTION JOINT LAYOUT WITHENGINEER IN FIELD PRIOR TO INSTALLATION. CONTRACTOR SHALL PLACE EXPANSIONJOINTS IN CONCRETE WALKS AS INDICATED IN LAYOUTS, AT FIXED OBJECTS, BETWEENBACK OF CURB/ LANDSCAPE CURB AND CONCRETE WALK, AND AS OTHERWISEINSTRUCTED IN MNDOT 2521.3.D.3 JOINT CONSTRUCTION.3. REFER TO SPECIAL PROVISIONS LS FOR ADDITIONAL REQUIREMENTS FOR PROPOSEDSITE FURNISHINGS OF WASTE RECEPTACLES, RECYCLING UNITS, BENCHES AND BIKERACKS. CONTRACTOR SHALL PROTECT ALL SITE FURNISHINGS PRIOR TO INSTALLATION.4.BASE BID INCL U D E S L A N D S C A P E B E D P R E P A R A T I O N , L O A M T O P S O I L B O R R O W (PLANTING SO I L M I X ) , M U L C H M A T E R I A L 6 , A N D I R R I G A T I O N S Y S T E M F U R N I S H A N D INSTALLED CO M P L E T E . 5. ALL PLANT M A T E R I A L A N D I N S T A L L A T I O N A R E A D D A L T E R N A T E B I D I T E M S . S E E PLANTING PLA N S P - 1 , P - 2 A N D P - 3 F O R M O R E I N F O R M A T I O N . 6. LAYOUT DIM E N S I O N S A N D F I N A L P L A C E M E N T O F S T R E E T S C A P E E L E M E N T S T O B E VERIFIED IN FI E L D B Y E N G I N E E R P R I O R T O I N S T A L L A T I O N . 7. SEE LIGHTIN G P L A N A N D D E T A I L S F O R R E L O C A T E D S T R E E T L I G H T S , N E W F I X T U R E S F O R EXISTING STR E E T L I G H T S , A N D N E W P A R K I N G L I G H T F I X T U R E L O C A T I O N S A N D T Y P E S . 0 f e e t s c a l e 1 0 2 0 1 0 3L-1 ENLARGED STREETSCAPE PLAN 2L-1 ENLARGED STREETSCAPE PLAN 1L-1 OVERALL STREETSCAPE PLAN E N L A R G E D S T R E E T S C A P E P L A N N O T E S : 1 . D I M E N S I O N S S H O W N A R E P A R A L L E L A L O N G I N D I C A T E D F E A T U R E S U N L E S S O T H E R W I S E N O T E D . 2 . V E R I F Y A L L D I M E N S I O N S I N F I E L D W I T H E N G I N E E R P R I O R T O C O N S T R U C T I O N . 3 . N O T E D 4 - F O O T W I D T H F O R 4 " C O N C R E T E W A L K S P E C I A L A T B A C K O F C U R B I S N O M I N A L T H R O U G H O U T A S I N D I C A T E D . S E E D E T A I L S O N S H E E T S D - 2 F O R A D D I T I O N A L I N F O R M A T I O N . 6 . 6 EXISTINGBUILDING, TYP F U T U R E M E T R O T R A N S I T B U S S T O P / S H E L T E R , B Y O T H E R S , N . I . C . T U R F B O U L E V A R D S A W C U T A T N E A R E S T E X I S T I N G J O I N T , T Y P P R O T E C T E X I S T I N G C O N C R E T E W A L K , S T O P S I G N & P E D R A M P S A W C U T A T N E A R E S T E X I S T I N G J O I N T & E X P A N S I O N J O I N T , T Y P S A W C U T A T N E A R E S T E X I S T I N G J O I N T & E X P A N S I O N J O I N T , T Y P R.O.W. B A S S L A K E R O A D ( C O U N T Y R O A D 1 0 ) SEE PED RAMPSTANDARDPLANS, TYP2L-2 PLANTING BED (TYP),SEE ENLARGED PLANTINGPLANS SHEETS P-2 & P-3 LIMITS OF N E W 4 " C O N C R E T E WALK AT E X I S T I N G J O I N T , T Y P CONTRACTIONJOINT, TYP(SEE NOTE 2) A L I G N C O N T R A C T I O N J O I N T S I N 4 " C O N C R E T E W A L K W I T H C O N T R A C T I O N J O I N T S I N 4 " C O N C R E T E W A L K S P E C I A L , T Y P TREE PLANTING(TYP), SEE PLANTINGPLAN SHEET P-1 4" CONCRETE WA L K S P E C I A L (TYP), SEE SHEET S D - 2 F O R DETAILED LAYOU T S A N D NOTE 1 EXPA N S I O N JOIN T , T Y P 2 4 0 . 0 ' 4 . 0 ' N O M . P A R K I N G B A Y , S E E C O N S T R U C T I O N P L A N S P L A N T I N G B E D ( T Y P ) , S E E E N L A R G E D P L A N T I N G P L A N S S H E E T S P - 2 & P - 3 P L A N T I N G B E D ( T Y P ) , S E E E N L A R G E D P L A N T I N G P L A N S S H E E T S P - 2 & P - 3 3 L - 2 R E L O C A T E D S T R E E T L I G H T F I X T U R E ( T Y P ) , S E E N O T E 7 4 " C O N C R E T E W A L K S P E C I A L ( T Y P ) , S E E S H E E T S D - 2 F O R D E T A I L E D L A Y O U T S A N D N O T E 1 7 . 4 ' 8 4 . 4 ' 7 . 4 ' E X P A N S I O N J O I N T , T Y P L E G E N D : S T R E E T S C A P E B I K E R A C K W A S T E R E C E P T A C L E R E C Y C L I N G U N I T P R E F A B R I C A T E D B E N C H , 6 - F O O T R E L O C A T E D O R N E W L I G H T F I X T U R E ( S E E L I G H T I N G P L A N & D E T A I L S ) T R U N C A T E D D O M E S A T P E D E S T R I A N R A M P 4 S D - 1 4 " C O N C R E T E W A L K 4 " C O N C R E T E W A L K S P E C I A L 3 S D - 1 3 S D - 1 2 S D - 1 C O N C R E T E C U R B V 4 1 S D - 1 1 S D - 2 2 S D - 2 3 S D - 2 R E C Y C L I N G U N I T , Q T Y ( 1 ) , S E E D E T A I L 3 / S D - 1 W A S T E R E C E P T A C L E , Q T Y ( 1 ) , S E E D E T A I L 3 / S D - 1 B E N C H , Q T Y ( 1 ) , S E E D E T A I L 2 / S D - 1 B I K E R A C K , Q T Y ( 1 ) , S E E D E T A I L 4 / S D - 1 B E N C H , Q T Y ( 1 ) , S E E D E T A I L 2 / S D - 1 B I K E R A C K , Q T Y ( 2 ) , S E E D E T A I L 4 / S D - 1 2 8 . 5 ' 1 1 . 2 ' 6 ° D A T U M : I R O N 5 2 . 7 ' ( F R O M E A S T ) 1 . 7 ' ( F R O M N O R T H ) F R O M B A C K O F C U R B , T Y P 4 5 ° 2 . 0 ' 4 5 ° 3 . 0 ' 5 . 8 ' 1 . 3 ' 9 . 3 ' 9 . 2 ' 1 ° 2 2 . 9 ' 5 2 . 3 ' 9 . 2 ' 1 0 . 4 ' 1 0 . 7 ' 1 2 . 9 ' 5 . 0 ' 2 2 . 2 ' 5 . 4 ' 7 . 3 ' 1 8 . 6 ' 1 2 . 0 ' 1 2 . 0 ' 2 . 8 ' 6 ° 5 . 4 ' 2 3 . 7 ' 7 . 7 ' 1 9 . 2 ' 1 9 . 1 ' 1 0 . 0 ' 7 . 9 ' 8 . 0 ' 2 0 . 2 ' 1 2 . 9 ' 6 . 3 ' 2 . 6 ' 4 . 0 ' 1 0 . 0 ' 9 . 6 ' 1 0 . 0 ' 9 . 7 ' 4 . 0 ' 1 9 . 3 ' 1 8 . 1 ' 7 . 8 ' 1 2 . 9 ' 1 5 . 9 ' 1 5 . 5 ' 7 . 4 ' 8 . 0 ' 0 . 5 ' 2 . 8 ' 0 . 5 ' 2 . 0 ' 1 2 . 0 ' 2 . 1 ' 2 . 0 ' 6 . 0 ' 9 . 8 ' 3 5 . 2 ' ( F R O M W E S T ) 3 2 . 0 ' ( F R O M S O U T H ) 4 ° DATUM: O.C.EXISTINGSIGNAL POST RECYCLING UNIT,QTY (1), SEE DETAIL3/SD-1 WASTE RECEPTACLE,QTY (1), SEE DETAIL3/SD-18.0'26.0'(FROM WEST)FROM BACK OF CURB, TYP 6.5'7.0'(FROMNORTH)6.8'3.8'3.0'45°BIKE RACK,QTY (2),SEE DETAIL4/SD-15.8'45°2.6'9.2'6.0'12.0'8.0'14.2'0.5'1.5'BENCH, QTY (1),SEE DETAIL 2/SD-1 1.0'7.9' T R U N C A T E D D O M E S A T P E D E S T R I A N R A M P ( S E E P E D R A M P S T A N D A R D P L A N S ) C A N O P Y T R E E O R N A M E N T A L T R E E P L A N T I N G A R E A S S E E D I N G A R E A S ( T U R F ) 1 P - 1 2 P - 1 1 P - 1 2 P - 1 1 P - 2 2 P - 2 1 P - 3 2 P - 3 2 P - 1 DESIGN TEAM DESIGNER:DRAWN BY:CHECKED BY:KWNO.BYREVISIONSDATE I H E R E B Y C E R T I F Y T H A T T H I S P L A N W A S P R E P A R E D B Y M E O R U N D E R M Y D I R E C T S U P E R V I S I O N A N D T H A T I A M A D U L Y L I C E N S E D L A N D S C A P E A R C H I T E C T U N D E R T H E L A W S O F T H E S T A T E O F M I N N E S O T A . C I T Y o f C R Y S T A L P R I N T E D N A M E L i c . N o . S I G N A T U R E K A R Y N M . L U G E R 2 6 4 2 3 D a t e : 0 2 / 0 9 / 2 0 1 8 P H O N E : 9 5 2 . 9 1 2 . 2 6 0 0 1 0 9 0 1 R E D C I R C L E D R I V E S U I T E 3 0 0 M I N N E T O N K A , M N 5 5 3 4 3 - 9 3 0 2 w w w . s e h i n c . c o m F I L E N O . D A T E B A S S L A K E R O A D S T R E E T S C A P E 0 2 / 0 1 / 2 0 1 8 1 4 1 8 7 7 4 6 95% CONSTRUCTION DRAWINGSKLKL 0feetscale204020 S H E R B U R N E A V E T O E L M H U R S T A V E L - 2 S T R E E T S C A P E L A Y O U T P L A N 3 3 0feetscale1020102L-2 ENLARGED STREETSCAPE PLAN 1L-2 OVERALL STREETSCAPE PLAN3L-2 E N L A R G E D S T R E E T S C A P E P L A N ENLARGED STREETSCAPE PLAN NOTES:1. DIMENSIONS SHOWN ARE PARALLEL ALONGINDICATED FEATURES UNLESS OTHERWISE NOTED.2. VERIFY ALL DIMENSIONS IN FIELD WITH ENGINEERPRIOR TO CONSTRUCTION.3. NOTED 4-FOOT WIDTH FOR 4" CONCRETE WALKSPECIAL AT BACK OF CURB IS NOMINALTHROUGHOUT AS INDICATED. SEE DETAILS ONSHEET SD-2 FOR ADDITIONAL INFORMATION.MATCHLINE: SEE L-1NOTES:1. 4" CONCRETE WALK SPECIAL SHALL BE FURNISHED AND INSTALLED BY MNDOT PRE-QUALIFIEDCOLORED CONCRETE CONTRACTOR/ INSTALLER MEETING THE REQUIREMENTS UNDER MNDOT2521.3.D.1.b COLORED CONCRETE. REFER TO SPECIAL PROVISIONS LS FOR ADDITIONALINFORMATION ON 4" CONCRETE WALK SPECIAL.2. CONTRACTOR TO PROVIDE CONTRACTION JOINT PATTERN AS SHOWN. ALL CONTRACTION JOINTSSHALL BE SAW CUT. VERIFY CONTRACTION JOINT LAYOUT WITH ENGINEER IN FIELD PRIOR TOINSTALLATION. CONTRACTOR SHALL PLACE EXPANSION JOINTS IN CONCRETE WALKS ASINDICATED IN LAYOUTS, AT FIXED OBJECTS, BETWEEN BACK OF CURB/ LANDSCAPE CURB ANDCONCRETE WALK, AND AS OTHERWISE INSTRUCTED IN MNDOT 2521.3.D.3 JOINT CONSTRUCTION.3. REFER TO SPECIAL PROVISIONS LS FOR ADDITIONAL REQUIREMENTS FOR PROPOSED SITEFURNISHINGS OF WASTE RECEPTACLES, RECYCLING UNITS, BENCHES AND BIKE RACKS.CONTRACTOR SHALL PROTECT ALL SITE FURNISHINGS PRIOR TO INSTALLATION. 4 . B A S E B I D I N C L U D E S L A N D S C A P E B E D P R E P A R A T I O N , L O A M T O P S O I L B O R R O W ( P L A N T I N G S O I L M I X ) , M U L C H M A T E R I A L 6 , A N D I R R I G A T I O N S Y S T E M F U R N I S H A N D I N S T A L L E D C O M P L E T E . 5 . A L L P L A N T M A T E R I A L A N D I N S T A L L A T I O N A R E A D D A L T E R N A T E B I D I T E M S . S E E P L A N T I N G P L A N S P - 1 , P - 2 A N D P - 3 F O R M O R E I N F O R M A T I O N . 6 . L A Y O U T D I M E N S I O N S A N D F I N A L P L A C E M E N T O F S T R E E T S C A P E E L E M E N T S T O B E V E R I F I E D I N F I E L D B Y E N G I N E E R P R I O R T O I N S T A L L A T I O N . 7 . S E E L I G H T I N G P L A N A N D D E T A I L S F O R R E L O C A T E D S T R E E T L I G H T S , N E W F I X T U R E S F O R E X I S T I N G S T R E E T L I G H T S , A N D N E W P A R K I N G L I G H T F I X T U R E L O C A T I O N S A N D T Y P E S . 6 . 6 AGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL  REGULAR MEETING  MONDAY, FEBRUARY 5, 2018 IMMEDIATELY FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING CRYSTAL CITY HALL COUNCIL CHAMBERS 1. Call to order * 2. Roll call * 3. Approval of minutes from January 2, 2018 Annual Organizational Meeting 4. Public Hearing to consider a resolution approving the sale of an EDA lot at 5573 Zane Avenue North to Novak-Fleck for construction of a new single family home 5. Consider tentative acceptance of a proposal from Novak-Fleck for construction of a new single family home on the EDA lot at 5607 Zane Avenue North 6. Informational item: 2017 Housing, Foreclosure and Rental Summary 7. Other business * 8. Adjournment * *Items for which no materials are included in the packet Page 1 of 2 Minutes of the Economic Development Authority of the City of Crystal Annual Organizational Meeting January 2, 2018 1. Call to Order President Kolb called the annual organizational meeting of the Economic Development Authority of the City of Crystal (EDA) to order at 9:28 p.m. 2. Roll Call Upon call of the roll, the following members were present: Jim Adams, John Budziszewski, Elizabeth Dahl, Julie Deshler, Jeff Kolb, Nancy LaRoche and Olga Parsons. The following staff members were present: Anne Norris, Executive Director, John Sutter, Deputy Executive Director, Dan Olson, City Planner, and Troy Gilchrist, City Attorney. 3. Election of Officers The EDA considered officers for 2018. Motion by Commissioner Kolb (Adams) to approve the Mayor’s recommended slate of officers for 2018: President Olga Parsons, Vice President Nancy LaRoche, Secretary Elizabeth Dahl and Treasurer Jeff Kolb. Motion carried. Commissioner Kolb transferred the gavel to President Parsons. 4. Approval of Minutes Motion by Commissioner Deshler (Budziszewski) to approve the minutes of the December 5, 2017 regular meeting. Motion carried. 5. 4724 Lakeland - Lot Sale Public Hearing The EDA held a public hearing to consider a resolution approving the sale of an EDA lot at 4724 Lakeland Avenue North to Tollberg Homes for construction of a new single family home. Mr. Olson presented the staff report and took questions from the board. President Parsons opened the public hearing. There being no one present to offer testimony, President Parsons closed the public hearing. Page 2 of 2 Motion by Commissioner Deshler (Budziszewski) to adopt the resolution authorizing the sale of 4724 Lakeland Avenue North to Tollberg Homes for new home construction. Motion carried. 6. 5573 Zane - Consider Builder’s Proposal The EDA considered tentative acceptance of a proposal from Novak-Fleck to purchase the EDA lot at 5573 Zane Avenue North. Mr. Olson presented the staff report and took questions from the Board. Following EDA discussion, motion by Commissioner Deshler (LaRoche) to tentatively accept the proposal from Novak-Fleck for the EDA lot at 5573 Zane Avenue North. Motion carried. 7. Consider Amended Bylaws Mr. Sutter presented the staff report and took questions from the Board. Motion by Commissioner Kolb (Dahl) to adopt the amended bylaws. Motion carried. 8. Other Business Mr. Sutter summarized anticipated lot sales during the next six months. 9. Adjourment Motion by Commissioner LaRoche (Dahl) to adjourn. Motion carried. The meeting adjourned at 9:49 p.m. ______________________________ Olga Parsons, President ATTEST: ______________________________ Elizabeth Dahl, Secretary _____________________________________________________________________ FROM: Dan Olson, City Planner ____________________________________________________________________ TO: Anne Norris, City Manager (for February 5 EDA Meeting) DATE: February 1, 2018 RE: PUBLIC HEARING: Consider resolution authorizing the sale of lot at 5573 Zane Avenue North for construction of new home Novak Fleck, a Minnesota Residential Building Contractor with no enforcement actions, has submitted a proposal to purchase the lot at 5573 Zane Avenue North for $60,000. The EDA tentatively accepted the builder’s proposal on January 2, 2018. There have not been any changes to the site or building plan since that tentative approval . Attached are an aerial photo and proposed 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 Novak Fleck on other EDA lots, including 5209 - 49th Avenue North which recently sold for $265,000. The builder does not yet have a buyer for the home at 5573 Zane Avenue North. On this lot a variance reducing the rear (south) setback from 30 to 10 feet would be requested by Novak Fleck:  Because it is a corner lot, the minimum 30’ rear setback is measured from the south lot line even though the house will face east (toward Zane Avenue).  A variance is required because the proposed home would be set back 10’ from the south lot line.  The proposed home would be set back 30’ from Zane Avenue to m atch the setbacks of the adjacent homes to the south. Staff would recommend approval of this variance, which is scheduled to be reviewed by the Planning Commission on February 12 and considered by the City Council on February 20. At the January 2 meeting, EDA members questioned whether or not a future property owner could subdivide the property and construct another new home . As show on the proposed attached site plan, the distance from the northeast corner of the new home to the highway easement line (which is the north property line) is 51 feet. Therefore a subsequent property owner would not be able to split off the north yard into a second lot for the following reasons: EDA STAFF REPORT PUBLIC HEARING 5573 Zane Avenue North – Sale of lot to Novak Fleck 1. The second lot would need to be at least 60 feet wide plus the 5 foot minimum setback for the new home, so there would need to be at least 65 feet from the northeast corner of the new home to the north property line; and 2. The current parcel contains 10,853 sq. ft. The minimum for two units on this parcel (whether one duplex or two single-family lots) is 12,000 sq. ft.; and 3. If subdivided, both the lot with the new home and the second lot would only be 95 feet deep (the minimum lot depth is 100 feet). Only by receiving variances for all three of these requirements (lot width, area and depth) could a second home be built. While it would be hypothetically possible for a future Council to do this, staff opinion is that such approvals would be unlikely given the location, configuration, etc. of the property. For your information, the graphic below shows the status of upcoming EDA property sales in the vicinity of 5573 Zane. For 5573 Zane, if on February 5 the EDA adopts the attached resolution, and the City Council approves the variance on February 20, then the lot sale would close soon after. Construction would begin after closing with completion anticipated by summer 2018. REQUESTED EDA ACTION: After holding the public hearing and receiving any testimony, consider adopting the attached resolution authorizing the property sale of 5573 Zane Avenue North to Novak Fleck. ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 2018 - 02 A RESOLUTION AUTHORIZING THE SALE OF 5573 ZANE AVENUE NORTH FOR NEW HOUSE CONSTRUCTION WHEREAS, the Economic Development Authority of the City of Crystal (“the EDA”) is the owner of 5573 Zane Avenue North, legally described as follows: Lot 1, Block 2, Wilshire Terrace, Hennepin County, Minnesota (“the Property”); and WHEREAS, the EDA has solicited proposals from builders who desire to purchase the Property from the EDA and construct thereon a new single family house; and WHEREAS, the EDA has reviewed and accepted the proposal from Novak-Fleck. NOW, THEREFORE, BE IT RESOLVED that the EDA authorizes the sale of the Propert y to Novak-Fleck. BE IT FURTHER RESOLVED that the sale shall be completed in accordance with the terms of the Purchase and Redevelopment Agreement in substantially the form on file in City Hall, and that the President and Executive Director are hereby authorized to sign said Agreement and other documents required to complete the sale of the Property to Novak-Fleck. Adopted this 5th day of February, 2018. ____________________________________ Olga Parsons, President ____________________________________ Anne Norris, Executive Director L A K E L A N D A V E N W E L C O M E A V E X E N I A A V E ZANE PL (BASS LAKE RD) B R U N S W I C K A V E A D A I R A V E Z A N E A V E Y A T E S A V E 57TH AVE CLOVERDALE AVE N C X E N I A W E L C O M E D O U G L A S D R 54TH AVE A D A I R LAKELAND 56TH AVE Y A T E S A V E N W I L S H I R E B L V D . 57325733573257335732 572657275726572957255724572757245726 572057215720572157205725571657175716 57145715571457155714 5 5 0 2 5 5 0 8 5 5 1 4 5 5 2 0 5 5 2 6 5 6 0 2 5 6 0 8 5 6 1 4 5 6 2 0 5 6 2 6 5 7 0 0 5 7 0 8 5 7 1 45708570957085709570857095708 0 57015700 570257035702570357025700 660 5652 565556565655565656555656565756565657565656575656 56495648564956495648564956485648 5644 5649564856495648 5630 5643564256435642564356425643564256435642 6200 56415640 5637563656375637563656365635563656375636563256335631563056315631563056305629563056315630 56255624 562556245624562556255624 09 56195618561756195618 5810 56135611 5704570857246000 56135612 5600561056185802 5601 59005926 5568570157095719 5801580958175901 5573 551760016017 5509 6225 550555665562 5501 5565 555155655560 555655595562 5558 5555 5557 5557 5554 555055535554 5531 55495549 5549554855405546554755415547 5542 5521 55375541553655355542 5536 5500 5539 5532 5529 5538 5533 5528 5450 5525553255275533 5501 5519552655175516551755185527 5520 5511 5508 5511 551355125521 5516 55055710 5616 5600 55075506 5465 5515 55015500 57165509 5445 5705 5438 5609 54375436 570957095430 54315430 5410 5430 5431 5424 5425 5423 5422 5423 54175416 5410 5417 54315431 5425 5400 5414 54095413 54115410 5402 5405 5508 5404 5600 5608 5612 5618 5403 5325 8 5551 HWY 100 CR 10 CR 10 CR 102 CR 9 CR 8 CR 81 CR 70 CR 156 CR 102 CR 8 CR 156 CR 156 HWY 100 HWY 100 HWY 100 CR 81 CRYSTAL AIRPORT CRYSTAL AIRPORT ROBBINSDALEROBBINSDALE GOLDEN VALLEYGOLDEN VALLEY NEW HOPENEW HOPE BROOKLYN PARKBROOKLYN PARK BROOKLYN CENTERBROOKLYN CENTER CR 9 CR 10 N City of Crystal 4141 Douglas Drive N. Crystal, MN 55422 City of Crystal 4141 Douglas Drive N. Crystal, MN 55422 Aerial Image Hennepin County 2015 1 Mile N Site Location 5573 Zane Avenue North0100200300400500Feet Site Location 5573 PARK _____________________________________________________________________ FROM: Dan Olson, City Planner ____________________________________________________________________ TO: Anne Norris, City Manager (for February 5 EDA Meeting) DATE: February 1, 2018 RE: Consider tentative acceptance of proposal by Novak Fleck for the lot at 5607 Zane Avenue North Novak Fleck has submitted a proposal to purchase the lot at 5607 Zane Avenue North. The lot price is $55,000. Novak Fleck 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 two-car 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 an additional bedroom, a bathroom, and f amily room. Similar homes have been built by Novak Fleck on other EDA lots, including 5209 - 49th Avenue North which recently sold for $265,000. The builder does not yet have a buyer for the home at 5607 Zane Avenue North. The required public hearing would be scheduled if the EDA gives tentative acceptance of the proposal. For your information, the graphic below shows the status of upcoming EDA proper ty sales in the vicinity of 5607 Zane. EDA STAFF REPORT 5607 Zane Avenue North Lot purchase proposal from Novak Fleck REQUESTED EDA ACTION: EDA tentative approval of the purchase proposal with Novak Fleck for the EDA lot at 5607 Zane Avenue North. Page 1 of 2 DATE: January 31, 2018 TO: Anne Norris, City Manager (informational item for Feb. 5 EDA packet) RE: Annual Housing Market, Foreclosure and Rental Summary A. Price data for sales of single family houses in Crystal and comparisons with surrounding cities 1. 2017 Median Home Price: N Mpls (Camden) $155,200 + 13.8% Brooklyn Center $186,125 + 12.8% Crystal $200,900 + 8.3% Robbinsdale $205,000 + 10.8% New Hope $222,000 + 2.3% Brooklyn Park $229,900 + 7.3% Maple Grove $274,025 + 6.7% Golden Valley $314,000 + 8.2% Plymouth $340,000 + 4.6% 2. 2017 Median Home Price per Finished Square Foot: Brooklyn Center $111 + 12.7% N Mpls (Camden) $114 + 17.5% Brooklyn Park $121 + 7.2% Robbinsdale $126 + 13.7% Crystal $128 + 8.9% New Hope $128 + 9.1% Maple Grove $137 + 6.9% Plymouth $148 + 5.7% Golden Valley $155 + 8.9% __________________________________________________________ MEMORANDUM FROM: John Sutter, Community Development Director __________________________________________________________ Page 2 of 2 3. Percent Change in Median Home Price since the Housing Bubble N Mpls (Camden) - 5.4% since 2005 (peak year) Brooklyn Center - 4.6% since 2005 (peak year) New Hope - 1.7% since 2006 (peak year) Brooklyn Park - 0.5% since 2006 (peak year) Robbinsdale + 0.5% since 2007 (prior peak year) Crystal + 1.5% since 2005 (prior peak year) Maple Grove + 8.7% since 2007 (prior peak year) Plymouth + 15.6% since 2007 (prior peak year) Golden Valley + 15.9% since 2007 (prior peak year) 4. 2017 Distressed Sales as a Share of the Market Brooklyn Center 7.9% (peaked at 68% in 2009) Crystal 7.8% (peaked at 60% in 2011) N Mpls (Camden) 7.6% (peaked at 67% in 2009) Brooklyn Park 5.2% (peaked at 66% in 2009) New Hope 5.2% (peaked at 52% in 2011) Robbinsdale 4.0% (peaked at 55% in 2011) Plymouth 3.1% (peaked at 29% in 2011) Maple Grove 2.7% (peaked at 38% in 2011) Golden Valley 1.7% (peaked at 39% in 2011) B. Foreclosures In 2017 there were 30 foreclosures in Crystal, the lowest in at least 12 years. Two-thirds of the 2017 foreclosures were of mortgages originating before 2009, meaning that mortgages written during the housing bubble continue to generate foreclosures today despite the general recovery in the housing market. C. Rental Houses, Duplexes and Townhomes 8.3% of Crystal’s single family homes, duplexes and townhomes were rentals in 2017. This compares to 9.3% in 2016, 10.5% in 2015, 9.9% in 2014, 9.6% in 2013, 8.7% in 2012 and 7.6% in 2011. Two factors contributed to the decline in the rental share:  45 dwellings became rentals in 2017 while 72 dwellings ceased being used as rentals because they were sold to new owner-occupants. These market-driven changes resulted in a net reduction of 27 rentals in 2017.  51 relative homesteads and group homes became exempt from rental licensing after an ordinance change in fall 2016. $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 10 / 1 / 2 0 0 7 12 / 3 1 / 2 0 0 7 3/ 3 1 / 2 0 0 8 6/ 3 0 / 2 0 0 8 9/ 3 0 / 2 0 0 8 12 / 3 0 / 2 0 0 8 3/ 3 1 / 2 0 0 9 7/ 1 / 2 0 0 9 9/ 3 0 / 2 0 0 9 12 / 3 0 / 2 0 0 9 4/ 1 / 2 0 1 0 7/ 1 / 2 0 1 0 9/ 3 0 / 2 0 1 0 12 / 3 1 / 2 0 1 0 4/ 1 / 2 0 1 1 7/ 1 / 2 0 1 1 10 / 1 / 2 0 1 1 12 / 3 1 / 2 0 1 1 3/ 3 1 / 2 0 1 2 7/ 1 / 2 0 1 2 9/ 3 0 / 2 0 1 2 12 / 3 0 / 2 0 1 2 4/ 1 / 2 0 1 3 7/ 1 / 2 0 1 3 9/ 3 0 / 2 0 1 3 12 / 3 1 / 2 0 1 3 4/ 1 / 2 0 1 4 7/ 1 / 2 0 1 4 10 / 1 / 2 0 1 4 12 / 3 1 / 2 0 1 4 4/ 1 / 2 0 1 5 7/ 2 / 2 0 1 5 10 / 1 / 2 0 1 5 12 / 3 1 / 2 0 1 5 4/ 1 / 2 0 1 6 7/ 1 / 2 0 1 6 9/ 3 0 / 2 0 1 6 12 / 3 1 / 2 0 1 6 4/ 1 / 2 0 1 7 7/ 1 / 2 0 1 7 10 / 1 / 2 0 1 7 12 / 3 1 / 2 0 1 7 Ac t u a l S a l e P r i c e Date of Sale (each vertical line represents one quarter) Sale Prices of Single Family Houses in Crystal Excluded are houses sold for more than $400,000 ($350,000 before 2017 and $300,000 before 2015),houses that were demolished, and new construction.Trendline is a 90-day moving average. LAST GASPOF THEBUBBLE FALSEBOTTOM THE REAL BOTTOM TYPICAL MARKET WITH SEASONAL HIGHS & LOWS(BUT STRONG APPRECIATION) Foreclosures in Crystal, 2005 to Present 0 50 100 150 200 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Annually 0102030405060 Quarterly 051015202530 Monthly DISTRICT 7 DISTRICT 6 DISTRICT 5 DISTRICT 1 DISTRICT 2 DISTRICT 4 DISTRICT 3 Distribution of ForeclosuresThrough December 2017Hennepin County 0 2 4 6 8 101Miles Data Source:December 2017 Sales Extract, Hennepin County Sheriff's OfficeTotal Records:809Records Successfully Geolocated: 807 (100%)Records Unsuccessfully Geolocated: 2 (1%) Commissioner District Boundary Count of ForeclosuresJAN - DEC 20170 1-25 30-60 80 243 Map Produced by Hennepin CountyRRES DepartmentSurvey DivisonJan 11, 2018 Note:Map reports mortgage foreclosure sales reported by the Hennepin County Sheriff to Taxpayer Services Department. Hennepin County's methodology is to count all foreclosure sheriff's sales categories (assessment, association, execution, judgment, and mortgage). The Sheriff's certificate of sale documents included in this report may still be within the owner's redemption period, which in Minnesota typically ranges from five weeks to six months. Commissioner District Total 1 185 2 151 3 77 4 77 5 101 6 101 7 115 Foreclosures (Total Records: 809) CITY OF CRYSTALFORECLOSURE RATEExisting Single Family and Duplex PropertiesAnnualized Average, Jan. 1, 2007 - Dec. 31, 2017 CITYWIDE DATA:Number of Existing Single Family or Duplex Properties in Crystal Existing SF/Duplex Properties Foreclosed from Jan. 1, 2007 to Dec. 31, 2017 CITYWIDE ANNUALIZED AVERAGE FORECLOSURE RATE BENCHMARK 25% ABOVE CITYWIDE AVERAGE BENCHMARK 25% BELOW CITYWIDE AVERAGE 7,419 1,086 1.33% 1.66% 1.00%DATA BY NEIGHBORHOOD: Name of Neighborhood Number of Existing Single Family or Duplex Properties in the Neighborhood SF/Dup Properties Foreclosed from Jan. 1, 2007 to Dec. 31, 2017 ANNUALIZED AVERAGE FORECLOSURE RATE NEIGHBORHOOD RANK (from highest rate to lowest rate)Lions Park 405 81 1.82% 1Lee Park 353 70 1.80% 2Broadway 356 64 1.63% 3Welcome Park 673 121 1.63% 4Twin Oaks 510 90 1.60% 5Skyway 557 93 1.52% 6Becker 383 62 1.47% 7Forest 1,030 164 1.45% 8Cavanagh Oaks 443 67 1.37% 9Fair 300 40 1.21% 10Bassett Creek 499 53 0.97% 11Winnetka Hills 548 56 0.93% 12Brownwood 588 57 0.88% 13Valley Place 774 68 0.80% 14 >25% ABOVE CITYWIDE AVG. >25% BELOW CITYWIDE AVERAGE WITHIN 25% OF CITYWIDE AVERAGE 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: Feb. 2, 2018 City Council Second Work Session Agenda Feb. 5, 2018 Following the EDA 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 Feb. 5, 2018 in Conference Room A, 4141 Douglas Dr. N., Crystal, Minnesota. I. Attendance Council Members Staff ____ Dahl ____ Norris ____ Deshler ____ Therres ____ Kolb ____ Gilchrist ____ LaRoche ____ Ray ____ Parsons ____ Revering ____ Adams ____ Sutter ____ Budziszewski ____ Serres II. Agenda The purpose of the work session is to discuss the following agenda items: 1. Accessory dwelling units, “tiny houses” and temporary family health care dwellings. 2. Potential lease agreement with Verizon Wireless to place a telecommunications tower on city property at 3200 Vera Cruz Ave. N. 3. Review chapter 8 proposed changes. 4. Constituent issues update. 5. New business.* 6. Announcements.* 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. Page 1 of 4 _____________________________________________________________________ FROM: Dan Olson, City Planner ____________________________________________________________________ TO: Anne Norris, City Manager (for February 5 City Council Meeting) DATE: February 1, 2018 RE: Discuss Housing Related Zoning Issues A. BACKGROUND At its December 19, 2017 meeting, the City Council approved first reading of the unified development code (UDC), which included allowing accessory dwelling units with use-specific standards. During that discussion, the Council expressed an interest in further discussion about housing related zoning issues. This staff report is provided in response to that request and discusses accessory dwellings units, temporary family health care dwellings and residential lot widths. B. ACCESSORY DWELLING UNITS - GENERALLY The defining characteristic of ADUs is that they must be accessory and subordinate to the principal use of the property as a single family home. An accessory dwelling unit (ADU) can be either attached to the principal building or in a detached accessory building:  Attached ADU: An attached ADU is a separate unit within or attached to the existing home, such as a basement apartment or wing addition.  Detached ADU: A detached ADU is located in a separate building from the principal home. If the second unit is not accessory and subordinate to the principal use of the property as a single family home, then the property is really just a two -family dwelling (duplex) and should be regulated as such. The new UDC reduced the minimum lot area for duplexes in the R-1 district from 15,000 to 12,000 sq. ft. This allows more properties in R-1 to have a duplex without the second unit needing to be accessory and subordinate to a single-family home. To further relax the limitations on duplexes in R-1, staff is proposing to reduce the minimum lot width from 100 to 80 feet; see Section E of this report. COUNCIL STAFF REPORT Discuss Housing Related Zoning Issues Page 2 of 4 For those properties in R-1 that don’t meet the requirements for a duplex:  The previous zoning code did not allow ADUs at all.  The new UDC only allows ADUs that are part of a detached garage.  Staff recommends amending the UDC to allow attached ADUs and also detached ADUs that are not part of a detached garage. C. PROPOSED CHANGES TO UDC FOR ACCESSORY DWELLING UNITS Proposed changes for Crystal are shown in red in the table below, together with a comparison with other cities: REQUIREMENT Crystal Richfield Roseville Eagan Bloomington Minneapolis St. Paul Property owner must reside on property Yes Yes Yes Yes Yes Yes Yes Separate sewer and water connection Yes Yes Yes Yes Yes Yes Yes Minimum or maximum size of ADU Max: 50% of principal dwelling Min: 300 SF Max: 800 SF or house footprint No Min: 300 SF Max: 960 SF or 33% of house footprint Min: 300 SF Max: 960 SF or 33% of house footprint Min: 300 SF Max: 800 SF Max: 1,000 SF or 50% of principal dwelling ADU subject to additional dimensional requirements (setbacks, etc.) No No No Yes Yes Yes Yes Detached ADU must be on a frost-protected foundation Yes (just like detached garages) Yes Yes Does not allow detached ADUs Does not allow detached ADUs Yes Yes Additional parking 1 space 3 spaces 1 spaces 2 spaces None None None Limit number of residents No (but standard overcrowding limits apply) No Max: 2 Max: 2 Max: 2 No Max: 1 family as defined by zoning code Rental license, required Yes, unless it is exempt (like a relative homestead) Yes No, but the unit must be registered with the city No, but the unit must be registered with the city Yes Yes No Must be part of a detached garage Current: Yes Proposed: No Yes No Does not allow detached ADU Does not allow detached ADU No No Allow ADU entrance facing street Yes No Yes Yes Yes No Yes Page 3 of 4 The most significant change would be for Crystal to not require that a detached ADU be part of a detached garage. Staff recommends this change, but only if accompanied by a requirement that ADUs be installed on a permanent frost- protected foundation in the same manner as detached garages or other accessory buildings. Portable tiny houses with wheels are really just recreational vehicles in disguise and should not be allowed as residences in Crystal. Another change would be to limit the floor area of an ADU to 50% of the finished floor area of the principal dwelling. This is intended to ensure that the ADU is truly accessory and subordinate to the single family home on the property. D. TEMPORARY FAMILY HEALTH CARE DWELLINGS In 2016 the state legislature adopted requirements for temporary family health care dwellings in city codes. These structures provide a temporary dwelling, similar to a recreational vehicle, for mentally or physically impaired family members. Staff believes that a vendor who sells these dwelling units influenced the legislature to create the state law authorizing these structures. None of the five cities adjacent to Crystal allows these temporary dwellings. According to the League of Minnesota Cities, more cities opted out of adopting an ordinance than adopted one in conformance with state law, but the League does not track which cities have adopted ordinances. At the November 7, 2017 City Council work session, the Council discussed whether to include requirements for temporary family health care dwellings in the UDC and decided not to allow them. The following issues were identified as the reasons for not allowing these dwelling types: o If these dwellings were allowed temporarily for a specific, limited period, it would be difficult for the city to remove the resident once the ir permit has expired; o If these dwellings were allowed in Crystal, those residents who own recreational vehicles may request that they also be able to use their vehicles as living space; o It would be difficult and expensive to connect these temporary dwel lings to city sewer and water; o The city has not had any requests for these dwelling types, and if there is a desire by residents for these dwellings, the city could create an ordinance at that time; o The city’s residential properties are generally too sma ll to accommodate these dwellings. Staff opinion is that all of these reasons remain valid. Furthermore, by allowing ADUs the city is providing many other ways for homeowners to provide a living space separate from the principal dwelling that can be used to house family members in need of care. Page 4 of 4 E. MINIMUM LOT WIDTHS For discussion by the City Council, staff proposes the following changes to minimum lot widths in the R-1 and R-2 zoning districts:  Minimum lot width for single-family homes: Change the minimum width from 60’ to 50’. This would provide the opportunity for the market to respond to changing consumer demand including a market trend away from large yards.  Minimum lot width for two-family homes: Change the minimum width from 100’ to 80’. This would provide marginally more opportunities for duplexes in the R-1 district while ensuring that single family homes continue to dominate the housing stock in the R-1 district. Proposed changes for Crystal are shown in red in the table below, together with a comparison with other cities: REQUIREMENT Crystal Richfield Roseville Golden Valley Brooklyn Park Robbinsdale New Hope Brooklyn Center Minimum Lot W idth for one- family dwellings In R-1 60’ (current) 50’ (proposed) 50’ 60’ 80’ Ranges from 70’ to 330’ 50’ 70’ -75’ 75’ Minimum Lot W idth for two- family dwellings in R-1 100’ (current) 80’ (proposed) 50’ 60’ prohibited prohibited 60’ 75’ 75’ F. CITY COUNCIL ACTION Staff requests Council discussion and direction regarding these proposed changes. The next step would be for staff to prepare a text amendment for a Planning Commission public hearing and subsequent Council action. _____________________________________________________________________ FROM: Dan Olson, City Planner ____________________________________________________________________ TO: Anne Norris, City Manager (for February 5 City Council Meeting) DATE: February 1, 2018 RE: Discuss Verizon Lease Agreement for a Telecommunications Tower A. BACKGROUND Verizon is asking whether the City Council is interested in entering into a lease agreement to locate a telecommunications tower on city-owned property at 3200 Vera Cruz Avenue North. Attachments: A. Site location map B. Elevation drawing showing proposed tower – stealth design C. Elevation drawing showing proposed tower – non stealth design D. Narrative describing project need B. TELECOMMUNICATION TOWER PROPOSAL The proposed 60-foot tower would be located at 3200 Vera Cruz Avenue North, a city- owned property that has a sanitary sewer lift station and city-owned utility pole for power to the lift station. Verizon is proposing to lease the property from the city and replace the existing utility pole with the telecommunication tower. The nearest residential property line to the proposed tower is approximately 185 feet and the nearest home is 250 feet. The following is further information about this proposal. Proposed lease At the February 5 City Council work session, the Council is being asked to express interest in entering into a lease agreement with Verizon for use of city-owned property for the telecommunications tower. The facility would be constructed at Verizon’s expense and would include the ability to co-locate future antennas. The city attorney would write the lease for review and signature by the city and Verizon. The value of the lease is estimated to be $20-$30,000 annually, plus the possibility of a percentage of the revenues that Verizon would receive from co -locating other antennas. Tower design and project need COUNCIL STAFF REPORT Discuss Verizon Lease Agreement A complete tower design would be submitted as part of the CUP and variance application (see below). However Verizon has submitted preliminary drawings to show what the tower could look like, and has submitted a narrative describing the project need. Verizon has submitted both a stealth tower design (attachment B) and a non- stealth design (attachment C):  Stealth design: This design would be more compatible with the residential character of the neighborhood and according to Verizon would be able to accommodate a total of 9 antennas (6 for Verizon and 3 for other providers co-locating on the tower). The utility cabinet serving the tower would be slightly larger than the non-stealth designed tower.  Non-stealth design: This design would be less compatible with the residential character of the neighborhood, and according to Verizon would be able to accommodate a total of 24 antennas (12 for Verizon and 12 for other providers co-locating on the tower). The ability to co-locate more antennas could represent more revenue for the city in the lease agreement with Verizon.  Color: For either design, the City Council can determine the color of the tower. For the project need, Verizon has submitted a narrative with maps to show coverage with and without the proposed tower (see attachment D). Verizon indicates that service would be significantly improved with the new tower and that there are no co- location opportunities in the area. The nearest Verizon facility is located at Memory Park (3980 Quebec Avenue N in New Hope) and this facility will soon reach capacity. Tower approval process If the Council expresses interest in entering into a lease , then Verizon would submit a conditional use permit (CUP) and variance application for review and approval by the Planning Commission and City Council. For the CUP, the unified development code (UDC) requires that Verizon address the following criteria:  The applicant has demonstrated that there is a significant gap in coverage in the area proposed for the telecommunications facility and that co -location on another tower is not feasible;  Verizon has used stealth techniques to minimize the impact of the tower on the surrounding area;  At least one other facility can be co -located on the tower; and  The new facility will not interfere with the continued operation of the lift station and from public safety communications. With a preliminary review of Verizon’s planned tower, City Engineer Mark Ray believes that the tower will not interfere with the lift station, but this will be confirmed during the CUP process. Verizon would be requesting variances from the following UDC requ irements:  The size of the parcel must be a minimum of 3 acres. The city’s property is 0.09 acres (3,827 square feet) in size  The tower must be at least 82.5’ from any property line . The proposed tower would be approximately 20 feet from the property line of the city -owned parcel.  The parcel must be large enough to accommodate the potential collapse of the tower, unless the applicant can demonstrate that the tower would collapse within the property. If the applicant cannot demonstrate this, then a variance is required from this property dimensional requirement. For the Planning Commission public hearing for the CUP and variance, staff would notify all property owners within 600 feet of the property of the hearing. A neighborhood meeting could be held by Verizon prior to the public hearing to gauge interest in the proposal. C. CITY COUNCIL ACTION This agenda item is being presented so the Council may discuss interest in entering into a lease agreement for a telecommunications tower at 3200 Vera Cruz Avenue North. RF Coverage Maps for Proposed Site in Crystal, MN 1-18-2018 Nithya Jaipuriyar, RF Engineer, Verizon Wireless The following maps demonstrate the need for a new site near Bassett Creek Park, Crystal, MN 55422. The measurements considered in this study will be the Coverage and the Best Server Coverage Distribution - a map showing the geographic areas served by a site’s sector. A new site such as the one proposed in this document will be designed with the goal of improving coverage in an area, especially in target areas such as neighborhoods, shopping areas or busy highways/roads. Another design goal for a new site is to balance the load between the existing sites in the area and the proposed site. This way if a proposed site experiences a large amount of traffic, that traffic will be divided among existing and proposed sites resulting in an increased speed and connection reliability for customers. First case: Coverage In general, at analysis we can identify three levels of coverage: - Good (Red) – at this level customers will be able to establish and maintain reliable connections both indoors and outdoors; - Fair (Yellow) – at this level customers will be able to establish a reliable connection outdoors but performance will most probably suffer indoors. Reliable connections will still be possible in vehicle; - Poor (Green) – at this level, connections can only be established outdoors. Reliable connections indoors or in vehicle are highly unlikely. If the coverage is below poor level, it is generally considered that the signal is ‘non -existing’, meaning that no reliable connection will likely be possible. The following maps show the existing and expected coverage in the area surrounding the proposed site. Figure 1. Existing Coverage (Without the Simulated Effect of the Proposed Site) The above map shows the existing coverage in the area surrounding the proposed site Quail. Areas with Good coverage levels are shown in red; areas with Fair coverage are shown in yellow, and areas with Poor coverage levels are shown in green. Areas shown with no color have a coverage level below Poor which is considered to be unreliable signal. The expected coverage impact of the proposed site is not simulated in this case. As can be seen in the above coverage map, the area surrounding the proposed site, Quail has mostly Fair to Poor level of coverage. Fair to Poor coverage will experience connection reliability issues especially for customers in indoor locations or in vehicles. Figure 2. Expected Coverage (With the Simulated Effect of the Proposed Site) The above map shows the existing coverage in the area surrounding the proposed site Quail. Areas with Good coverage levels are shown in red; areas with Fair coverage are shown in yellow, and areas with Poor coverage levels are shown in green. Areas shown with no color have a coverage level below Poor which is considered to be unreliable signal. The expected coverage impact of the proposed site is simulated in this case. As can be seen in the above map, the coverage with the proposed site, Quail, is expected to be significantly improved. To be noted that the areas that are currently being served at fair to poor coverage level are expected to be eliminated on MN-100 and in the residential neighborhood east of MN-100. Second Case: Best Server Distribution The following maps will show the server coverage distribution with and without a new site near Bassett Creek Park, Crystal, MN 55422. At Verizon, a lot of effort is being placed to ensure that all sites in our network are balanced in terms of the amount of traffic they are managing. In other words, if a site is experiencing too much traffic, a new site would be needed to offload a portion of that traffic. The new site would make it possible to deliver a better network experience to our customers and increased speeds in the area that is currently being served by the existing overloading site. This is especially true in the commercial, residential neigborhoods and well-travelled highways (i.e. MN-100). A new build site would help offload the high amount of traffic served by the existing site located Northwest (Memory Park) of Quail, which will translate into increased speeds for our customers. To gauge the amount of traffic that will be offloaded by a new site, the Best Server Coverage Distribution is analyzed. The Best Server Coverage Distribution is a measure used to display the different sectors of a site and identify the geographical areas served by those sectors. In this type of simulation, several colors will be present on the map, each color identifying a site, and more specifically, identifying a sector of a site, that is serving in a geographical area. The identified sector has the best coverage level in that area. The following two maps display the existing and expected Best Server Coverage Distribution. Figure 3. Existing Coverage (Without the Simulated Effect of the Proposed Site) The above map shows the existing best server coverage distribution of the area surrounding the proposed site (Quail). The expected effect of the proposed site is not simulated in this case. Each color on the map represents the area currently being served by individual sectors of existing sites. For example, if we consider the existing site (Memory Park) located Northwest of Quail, in dark blue we can identify the area covered by the west-facing sector of the site. In light-blue we can identify the area covered by the site’s north-facing sector. Similarly, green identifies the area served by the site’s southeast-facing sector. In the above map we can see that the southeast-facing sector (displayed in green) of the existing Verizon site (Memory Park) is currently serving a large residential neighborhood and MN-100 between Duluth St and 36th Ave. Analysis has shown that these sectors need an additional site to balance the traffic, thus the need for the proposed new site. Figure 4. Existing Coverage (Including the Simulated Effect of the Proposed Site) The above map shows the existing best server coverage distribution of the area surrounding the proposed site (Quail). The expected effect of the proposed site is simulated in this case. Each color on the map represents the area currently being served by individual sectors of existing sites. For example, if we consider the existing site (Memory Park) located Northwest of Quail, in dark blue we can identify the area covered by the west-facing sector of the site. In light-blue we can identify the area covered by the site’s north-facing sector. Similarly, green identifies the area served by the site’s southeast-facing sector. As can be seen in the above map, the northwest-facing and southwest-facing sectors of the proposed site (Quail) would take over some of the traffic in the residential neighborhood and MN-100 between Duluth St and 36th Ave. This reduction in the amount of traffic served by the existing site Memory Park translates into an enhanced user network experience and increased speeds on MN-100 and users in the residential neighborhoods. Analysis of Alternate Locations The location of a capacity site such as the one proposed herein is very important and chosen only after careful analysis of both existing and future predicted capacity demands. Several alternatives in the area are considered before identifying a specific location that would meet the radio frequency engineering objectives. Verizon Wireless intention is to meet the needs of the public in the area without adding to the number of tower but in this area, there were no colocation opportunities for us to consider. Analysis of current and future traffic demands have identified that the existing Verizon Wireless site (Memory Park) will exhaust its capacity in the very near future. Because of the high traffic demand in this area, the existing Verizon Wireless sites near this area are reaching its capacity limitations and, thus, a new site is needed in order to balance some of the existing site’s traffic with the new proposed site. By offloading a portion of that traffic, an increased network experience and increased speeds can be provided to our customers in this area. Your approval of this project will enable Verizon Wireless to continue to maintain the best, most reliable wireless service in your area for all of Crystal’s citizens and visitors. Sincerely, Nithya Jaipuriyar Verizon Wireless RF Engineer Email: Nithyakalyani.Jaipuriyar@vzw.com Mobile: 612-720-9030