HomeMy WebLinkAbout10-14-2014 City Council Packet CITY OF OAK PARK HEIGHTS
TUESDAY, OCTOBER 14, 2014
CITY COUNCIL MEETING AGENDA
7:00 P.M.
7:00 p.m. I. Call to Order/Pledge of Allegiance/Approval of Agenda
Estimated
times
7:05 p.m. IL Council/Staff Reports
A. Mayor McComber
B. Councilmember Dougherty
C. Councilmember Liljegren
D. Councilmember Runk
E. Councilmember Swenson
F. Staff
• Fall Clean-up Load Report (1)
• Recycling Award (2)
7:10 p.m. III. Visitors/Public Comment
This is an opportunity for the public to address the Council with questions or concerns on issues not part of the regular agenda(Please
limit comments to 3 minutes in length).
7:15 p.m. IV. Consent Agenda (Roll Call Vote)
A. Approve Bills & Investments
B. Approve City Council Minutes— September 23, 2014 (3)
C. Accept Donation from Glenn and Virginia Crain of Paris Ave (4)
D. Approve "Code Red" Agreement with Washington County Sheriffs Office—
2015-2019 (5)
E. Appoint Mary McComber as Voting Delegate at National League of Cities Annual
Business Meeting (6)
F. Authorize Deputy Clerk Jennifer Pinski to Attend NLC Conference in Austin,
Texas November 19—22 (7)
G. Approve Stillwater and Oak Park Heights Convention and Visitor's Bureau
Bylaws (8)
H. Approve Premises Permit Application for Gambling by American Legion Post 491
at Stillwater Bowl, 5862 Omaha Avenue North (9)
L Approve Redpath and Company Auditing Services for December 31, 2014 (10)
J. Approve 5th Payment to Hardrives, Inc. for 2014 Street Reconstruction (11)
7:20 p.m. V. Public Hearings
A. Public Hearing— TIF Area 1 —2 (12)
7:30 p.m. VI. Old Business
B. St. Croix River Crossing Project Update (no enclosure)
C. Street Reconstruction Project Update (no enclosure)
D. Party in the Park 2015 (13)
Page 1 of 182
Agenda
October 14,2014
Page 2
7:40 p.m. VII. New Business
A. Schedule City Council Meeting to Canvass 2014 Election Results (14)
B. Bayport Fire Department Advisory Committee (15)
C. Consider the Issuance of a Request for Bids— Council Meeting Rooms (16)
8:00 p.m. VIII. Other Council Items or Announcements
8:05 p.m. X. Adjournment
Page 2 of 182
1
CLEAN-UP LOAD REPORT
YEAR SEASON LOADS
2014 Fall 263
2014 Spring 332
2013 Fall 186
2013 Spring 297
2012 Fall 254
2012 Sprin 33 97
2011 Fall 266
2011 Spring 353
2010 Fall 200
2010 Spring 300
2009 Fall 277
2009. Spring 412
2008 Fall 289
2008 Spring 422
2007 Fall 340
2007 Spring 365
2006 Fall 205
2006 Spring 333
2005 Fall 294
2005 Spring 329
2004 Fall 255
2004 Spring 208
2003 Fall 246
2003 Spring 307
2002 Fall 261
2002 Spring 200+
2001 Fall 258
2001 Spring 274
2000 Fall 148
2000 Spring 185
1999 Fall 158
1999 Spring Unknown
Page 3 of 182
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Oak Park Heights 2
Request for Council Action
Meeting Date October 14, 2014
Agenda Item Recycling Award
Time Req. 0
Agenda Placement Staff Reports
Originating Department/Requestor Administration/Jennifer Pinski
Requester's Signature
Action Requested Receive Information
Background/Justification(Please indicate any previous action has been taken or if other public
bodies have been advised).
See Attached.
Page 5 of 182
City of
Oak Park Heights
14168 Oak Park Blvd. N•Box 2007.Oak Park Heights,MN 55082•Phone(651)439-4439.Fax(651)439-0574
October 10, 2014
Bo and Andrea Hicks
5650 Newgate Circle North
Oak Park Heights, MN 55082
Dear Mr. and Mrs. Hicks:
Thank you for participating in the City's recycling program. As an incentive to
recycle and to increase fire prevention awareness, the City rewards two
residents each month with their choice of an award of $25.00 or a fire
extinguisher and/or smoke detectors).
Your residence was checked on Thursday, October 9, 2014, to determine if
you had your recycling bin out with your regular garbage. Your recycling was
out and ready for collection; therefore, you are one of this month's winners.
Please contact me at 439-4439 to let me know your choice of award.
On behalf of the Oak Park Heights City Council, thank you for participating in
the City's recycling program.
Congratulations!
i
Jennifer Pinski
Deputy Clerk
TREE CITY U.S.A.
Page 6 of 182
P',
Oak Park Heights 3
Request for Council Action
Meeting Date October 14, 2014
Agenda Item Approve City Council Minutes— September 23, 2014
Time Req. 0
Agenda Placement Consent
Originating Department/Requestor Administration/Jennifer Pinski
Requester's Signature
Action Requested Approve
Background/Justification (Please indicate any previous action has been taken or if other public
bodies have been advised).
See Attached.
Page 7 of 182
CITY OF OAK PARE; HEIGHTS
TUESDAY, SEPTEMBER 23, 2014
CITY COUNCIL MEETING MINUTES
1. Call to Order/Pledte of Allegiance/Approval of Agenda: Mayor McComber
called the meeting to order at 7:05 p.m. Present. Councilmembers Dougherty,
Liljegren, Swenson, and Runk. Staff present: City Administrator Johnson, City
Attorney Vierling, Finance Director Caruso, City Planner Richards, and City
Engineer Reifsteck. Absent: None.
Mayor McComber added "Richert, et al vs. Oak Park Heights Matter"as New
Business Item G.
Councilmember Swenson, seconded by Councilmember Liljegren, moved to
approve the Agenda as amended. Carried 5-0.
11. Council/Staff Reports:
A. Mavor McComber: She reported that she and the City Administrator
attended the Coalition of Utility Cities conference call regarding DOR last
week; that the next Parks Commission meeting was set for October 20;
and that she was attending the CVB meeting and the NLC Policy
Committee meeting on September 24
B. Councilmember Doughert y: No report
C. Councilmember Liljeg[en: No report
D. Councilmember Runic: No report
E. Councilmember Swenson: He reported that the Cable Commission was
holding off on franchise discussions until it knew which company would
be taking over Comcast.
F. Staff: Mayor McComber reported that Fall Clean-up was set for October 4
from 7:30 a.m. to 1:00 p.m.; Deputy Clerk Pinski reported that Maruice
McClurg of 5922 Oxboro Avenue North and Parker VanEaton of 14775
Upper 56th Street North were chosen as the recycling award winners for
the month of September; City Administrator Johnson reported that the
Police Department was still investigating the bike accident that occurred in
Oak Park Heights and requested anyone with information contact Police
Chief DeRosier.
111. Visitors/Public Comment:
None
1V. Consent Aflenda:
Page 8 of 182
City Council Meeting minutes
September 23. 2014
Page 2 of 4
A. Approve Bills & Investments
B. Approve City Council Minutes—August 26, 2014
C. Approve City Council Minutes—September 9, 2014
D. Approve Boulevard Tree Removal at 14220 55th Street North
E. Approve 2014—2015 Snow Plowing Agreement
Councilmember Runk, seconded by Councilmember Dougherty, moved to
approve the Consent Agenda. Roll call vote taken. Carried 5-0.
V. Public Hearings:
A. Increase in Off-Sale Liquor License and Wine License Fees: Mayor
McComber opened the Public Hearing. No public comments were made.
Councilmember Swenson, seconded by Councilmember Liljegren, moved
to close the Public Hearing. Carried 5-0.
Councilmember Runk, seconded by Councilmember Liljegren, moved to
approve the Resolution. Roll call vote taken. Carried 5-0.
V1. Old Business:
A. St. Croix River Crossing Project Update: City Administrator Johnson
reported that the north frontage road reconstruction was delayed until
spring.
B. Street Reconstruction Project Update: City Engineer Reifsteck reported
that the contractor completed curb and gutter in Area E, and bituminous
would be installed later that week. He also reported that the water main
was complete in 61St Street Court North, and the water main was installed
in Area B. He stated the project was moving forward and should be
substantially completed by October 17.
C. Community Award Committee: Councilmember Swenson suggested staff
contact Joe Kohler of Joseph's Family Restaurant to be on the committee
and search for an interested resident by advertising on Facebook and the
website.
VII. New Business:
A. Schedule Public Comment/Hearing Meeting for Truth in Taxation:
Councilmember Runk, seconded by Councilmember Swenson, moved to
set the Truth in Taxation Hearing for December 9 at 7:00 p.m. in
conjunction with the regular meeting. Carried 5-0.
Page 9 of 182
City Council Meeting Minutes
September 23, 2014
Page 3 of 4
B. Adopt Resolutions Approving the 2015 Proposed Budget and Proposed Tax
Levies: Finance Director Caruso reported that the proposed 2015 budget
was 55.461,999 which was a 5.49 percent increase over 2014.
Councilmember Swenson, seconded by Councilmember Runk, moved to
approve the Resolution. Roll call vote taken. Carried 5-0.
C. Pine Grove Gardens—Planned Unit Development—Amendment
Preliminary & Final Plat and Conditional Use Permit: City Planner
Richards reported that the request was from Norm Dupre of St. Croix
Builders for a revised plan for five townhome units instead of six. He
reviewed his planning report. Mr. Dupre was present at the meeting and
reported that he had met with almost all of the neighbors and they came up
with a resolution that he will post a $10,000 bond for curb damage and
confirmed that no workers would park in any resident's spot.
Councilmember Runk, seconded by Councilmember Liljegren, moved to
approve the Resolution. Roll call vote taken. Carried 5-0.
D. Approve Developer's Agreement— Palmer Station Development— 13
Single Family Units: Councilmember Swenson, seconded by
Councilmember Dougherty, moved to approve the Developer's Agreement
for Palmer Station with changes to the plat. Carried 5-0.
E. BCWD—lrlorell Ave. Pond Proposal: Councilmember Runk stated that he
supported the BCWD doing the project but could not support a
contribution. Councilmember Swenson agreed.
Councilmember Runk, seconded by Councilmember Swenson, moved that
Oak Park Heights was on record as supporting the project. Carried 5-0.
F. Party in the Park 2015: Deputy Clerk Pinski reported that the Party in the
Park Committee had recommended that Party in the Park 2015 be held the
first Thursday in September. Councilmember Runk stated that once
school started there were many evening activities that would interfere with
that date. Mayor McComber reported that the Party in the Park
Committee would meet again and come back to the next City Council
meeting. This item was tabled.
G. Richert, et al vs. Oak Park Heights Matter: City Attorney Vierling
reported that the parties in the matter were directed to attend mediation as
part of the District Court process. He stated that the mediator made a
recommendation for settlement for a slight adjustment to the assessment
amount which the parties tentatively agreed to.
Page 10 of 182
City Council Meeting Minutes
September 23, 2014
Page 4 of 4
Councilmember Swenson, seconded by Councilmember Dougherty,
moved to allow staff to sign the agreement related to the mediation.
Can-i ed 5-0.
VIII. Other Council Items or Announcements
None
IX. Adjournment
Councilmember Swenson, seconded by Councilmember Liljegren, moved to
adjourn at 7:42 p.m. Carried 5-0.
Respectfully submitted, Approved as to Content and Form,
Jennifer Pinski Mary McComber
Deputy Clerk Mayor
Page 11 of 182
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Page 12 of 182
Oak Pa rk Heights
Request for Council Action 4
Meeting Date. October 14, 2014 Time Required: 1
Agenda Item Title: Accept Donation of$100 from Glenn & Virginia Crain of Paris Ave
Agenda Placement: Consent
Originating Department/Requestor. Oak Park Heights Police Dept., Chief Brian DeRosier
Requester's Signature
Action Requested: Accept Donation of$100 from Glenn Crain of Paris Ave
Background/Justification:
The police department received a personal donation in the amount of$100 from a private citizen—
Glenn Crain of 6332 Paris Ave.
The Crain family has been a repeat donor to our department and his efforts to support us in providing
educational and safety material for the youth of OPH is greatly appreciated.
A thank you letter was sent. See attached.
I request acceptance of this donation to the Police Department to be placed into the donations account
of the Police Department.
Page 13 of 182
! � POLICE [DEPARTMENT
FIR RN WIV,
CITY OF OAK PARK HEIGHTS
14168 Oak Park Blvd. N. •PO. Box 2007 Brian DeRosier
Oak Park Heights, Minnesota 55082 Chief of Police
Telephone: (651)439-4723
Fax: (651)439-3639
Emergency:911
October 1, 2014
Glenn J. Crain
6332 Paris Ave No.
Oak Park Heights, MN 55082
Mr. Crain;
I would like to sincerely thank you foryour kind donation of$100 to the Oak Park Heights Police
Department. Your continued support over there years has been greatly appreciated.
Your support of the Oak Park Heights Police Department is very generous and will be used to further the
department efforts going directly back to the community with education and outreach materials. These
donations allow us to purchase and provide education and safety materials to the children of the
community. The department cannot effectively serve the community without direct involvement from
the citizens such as you.
Your donation will be spent with great consideration to ensure it best serves the community.
Thank-you,
Brian DeRosier
Chief of Police
Page 14 of 182
r
I
Oak Park Heights 5
Request for Council Action
Meeting Date October 14`h, 2014
Time Required: 1 Minutes
Agenda Item Title: Code Red—Mass Notification System—Joint Powers Agreement 241.5-
2019.
Agenda Placement Consent A e
Originating Department/Re for Johnson Citv Administrator
Requester's Signature
�f
Action Requested Approve"Code Rea"Agreement with Washington County Sheriff's
Office--2015-2419.
7
Background/Justification(Please indicate if any previous action has been taken or if other public
bodies have advised):
The City has been trade aware of an opportunity to continue to buy-in to a Mass Notification System by
which a phone bank would be able to make numerous phone calls alerting City residents of a particular
emergency.
This system,called CODE RED,again would be to issue emergency notifications based on a delimited
area as defined by the City. The total cost to the County to offer this system is$33,750+/-and the County
is seeking the City to pay its proportionate share of this cost based on population of the entire County,and
which is approximately 1.9%.
When used for emergency purposes the City's annual fee for 2015 is anticipated to be$341.04 and is
based on per capita cost of$.078 per person. In addition,the City could pay an additional $.25 /minute
for NON EMERGENCY calls, such as to inform residents about a particular matter, such as a sudden
change or hiccup in garbage collection days. The City will however want to use the notifications
sparingly and only in meaningful circumstances.
For example,a non-emergency call of 20 seconds would cost the City$100.00
($.25 X 20 seconds X 1,200 households)divided by 60 seconds= $100.00
The City, if it was interested in this system could fund such purchase out of City Civil Defense Budget
which has been sparsely used over the years.There are simple early termination agreements for the City
to utilize should it not find the system worthwhile or useful.
Recommendation:Approve the Joint Powers Agreement with Washington County entering into the
CODE RED system from 1/2015 thru 1212019.
Page 15 of 182
A
Office of the s eir'ff
Commitment to l Veffence
William M. Hutton
Sheriff
Daniel Starry
Chief Deputy
l�r➢C,Ip11I25[N7
PO Box 2007
Oak Park Heights, MN 55082
Dear Mr.Johnson
In 2012 all cities and townships joined with the county to purchase a mass notification system known as Code
RED_ Over the past three years Code RED has been used throughout to county the notify citizens about
emergency and non-emergency events taking place in their community. Many agencies are using Code RED
as an employee notification tool. Currently, there are over 93,000 contact numbers in the Washington County
Code RED system. These contacts include all of the numbers from the 911 data bases and from Washington
County citizens signing up and placing their contact information in the Code RED system.
The initial Code RED agreement between the Sheriff's Office and the City of Oak Park Heights will expire
December 31" 2014, The cost of the Code Red System for 2015 through 2019 will remain $33,750.00 per
year. The fee structure that has been used/agreed upon by the local administrators group over the past three
years required each city/township to pay $.07860 x the population of the city/township. This fee structure has
worked well and we are proposing that it continues for the term of this agreement.
I am hoping all of the cities and townships will continue to partner with us in the Code RED System. I have
enclosed two copies of the Joint Powers Agreement that would need to be signed and returned to the Sheriff's
Office no later than November-3rd 2014.
Please contact Commander Anschutz at 651-430-7846 with any questions about the system.
Sincerely,
(Z41 73?)
d I I A 0 Tf 40 .0
F m
Douglas H Anschutz foww 1
1 ,s
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Commander bUFO M �/rP�►.y.,,/�ij�, �
Enclosed: Cost by population worksheet`
Joint Powers Agreement , ` o4'�0�V1.X
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Law Enforcement Center • 15015 62nd Street North—P.O. Box 3801, Stillwater, Minnesota 55082-3801
Phone: 651-430-7600 • Fax: 651-430-7603 • TTY: 651-430-6246
www.co.washington.mn.us Page 16 of 182
Equal Employment Opportunity/Affirmative Action
AGREEMENT BETWEEN THE WASHINGTON COUNTY SHERIFF'S OFFICE AND THE
CITY OF OAK PARK HEIGHTS TO PROVIDE CODE RED SYSTEM
THIS AGREEMENT is made by and between political subdivisions organized and existing under
the Constitution and laws of the State of Minnesota. Washington County a political subdivision
by and through its Sheriff's Office (hereinafter "Provider") and the City of Oak Park Heights
Minnesota, a municipal corporation, (hereinafter referred to as the "City") are the parties to this
agreement.
WHEREAS, Both political subdivisions through their law enforcement agencies manage threats
to public health and safety.
WHEREAS, The Provider has entered into a contract with Emergency Communications
Network for the purpose of providing a Mass Emergency Notification System also known as
Code Red.
WHEREAS, The provider has agreed to purchase 150,000 minutes from Emergency
Communications Network for the purpose of sending Mass Emergency Notifications to home,
business or cell phones.
WHEREAS, The Provider has agreed to purchase the Mass Emergency Communication system
to assist agencies within Washington County provide necessary emergency and non emergency
mass notifications.
WHEREAS, The City is in need of having the ability to communicate with the public in a timely
fashion during both emergency and non emergency situations.
WHEREAS, At the request of the City, the Provider is willing to provide a Mass Emergency
Notification System.
NOW THEREFORE, In consideration of the mutual covenant herein contain and the benefits
that each party hereto shall derive hereby the Provider and City agree to the following terms and
conditions.
PURPOSE
The purpose of this agreement is set forth in the recitals contained in the above whereas
clauses which are incorporated by references if fully set forth herein.
Page 17 of 182
CITY'S RESPONSIBILITIES
1. When needed, the City's representative shall be able to utilize the Mass Emergency
Notification Communication System by notifying the Washington County Sheriff's Office
911 PSAP for Emergency Notifications. Emergency Notifications are those that are
related to public safety as defined in the Code Red Policy. The 150,000 minutes
purchased by the provider will be used for all Emergency Notifications at no additional
cost to the City.
2. The City agrees to pay the Provider $341.04 for the purpose of purchasing its
roportionate share of 150,000 Emer enc Notification minutes per_year.
060 se C) L
3. The City will conform to any Policy developed by Provider related to the use and ^oh kL-5
maintenance of Code Red.
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4. The City's representative shall be responsible for determining the content of any
Emergency Notification message in addition to the geographic area the message is to be
sent.
5. The Washington County 911 PSAP Center personnel will assist in preparing Emergency
Notifications as defined in the Code Red Policy and will be responsible for initiating the
call procedures through Code Red at the direction of the City's authorized
representative.
6. The City's representative will be responsible for sending any General Notifications, as
defined in the Code Red Policy, through a web based server. General Notification
minutes used will be paid by the City to the Provider at an additional contracted rate of
.25 per minute. Those funds will be retained by the provider for the sole purpose of
purchasing minutes on the Code Red System.
7. For every additional year this agreement is extended the Provider will invoice the City at
a rate of$341.04 per year for emergency notification minutes.
8. City will be responsible for the payment of additional year(s) extension upon receipt of
the invoice from the Provider.
PROVIDER'S RESPONSIBILITIES
Page 18 of 182
1. Provider agrees to enter into a contract with Emergency Communications Network for
the purchase of 150,000 minutes of the Code Red Mass Notification System in 2012.
2. Provider will develop a policy related to the use and maintenance of the Code Red
System.
3. Provider will assign an employee as the Code Red System administrator.
4. Provider agrees to train the 911 PSAP personnel in the operation of the Code Red
System.
5. Provider agrees to train the City representative in the use of the Code Red System.
6. The Provider will test the Code Red System to ensure the system is operating properly.
7. The Provider will monitor the number of minutes used by all agencies to ensure there is
sufficient number of minutes available in the event of an emergency.
TERM OF AGREEMENT
The initial Term of this Agreement shall be from January 01, 2015 and ends December 31,
2016, the date of the signature of the parties notwithstanding, unless earlier terminated in
accordance with the termination clause. After the initial Term, this Agreement will automatically
renew for two additional one year periods with the final termination date of December 31St 2019;
unless the automatic extension is cancelled by the City in accordance with the termination
clause.
PAYMENT
The City shall pay the Provider within 30 days of being invoiced for the City's annual portion of
the Code Red System or for any General Message minute usage.
INDEPENDENT CONTRACTOR
It will be agreed that nothing within the contract is intended or should be construed in any
manner as creating or establishing the relationship of co-partners between the parties or as
constituting the City as the agent, representative, or employee of the Provider for any purpose
or in any manner whatsoever.
ASSIGNMENT
The City shall not assign any services contemplated under this agreement.
RECORD DISCLOSRESIMONITORING
Page 19 of 182
Pursuant to Minn. Statute 16C.05 SUBD. 5, the books, records, documents and accounting
procedures and practices of the contractor relevant to the contract are subject to examination by
the County and either the legislative auditor or the state auditor, as appropriate. The contractor
agrees to maintain and make available these records for a period of six years from the date of
termination of this agreement.
INDEMNIFICATION
Each party to this agreement shall be liable for its own acts or omissions and shall not be
liable for the acts or omissions of any other party to this agreement.
INSURANCE REQUIREMENTS
The City agrees that in order to protect itself, as well as the Provider, under the indemnity
provisions set forth above, it will at all times during the term of this Agreement, keep in force the
following insurance protection in the limits specified:
1. Maintain membership and participation in the Minnesota League of Cities Trust or
Commercial General liability Insurance with contractual liability coverage in the amount
of the City's and Provider's tort liability limits set forth in Minnesota Statute Section
466.04 and as amended from time to time.
2. Automobile coverage in the amount of the City's and Provider's tort liability limits set
forth in Minnesota Statute Section 466.04 and as amended from time to time.
3. Worker's Compensation in statutory amount.
Prior to the effective date of this Agreement, the City will furnish the Provider, with certificates of
insurance as proof of insurance. This provision shall be set as a condition subsequent; failure to
abide by this provision shall be deemed a substantial breach of contract.
Any policy obtained and maintained under this clause shall provide that it shall not be cancelled,
materially changed, or not renewed without thirty days notice thereof to the Provider.
DATA PRACTICES
All data collected, created, received, maintained, or disseminated for any purposes by the
activities of the contractor, because of this agreement, is governed by the Minnesota
Government Data Practices Act, Minnesota Statutes Chapter 13, as amended, the Minnesota
Rules implementing such Act now in force or as adopted, as well as federal regulations on data
privacy.
TERMINATION
a. Provider may cancel this Agreement with or without cause at any time upon giving a 30
days written notice to the City Administrator or designee. The City may cancel this
Agreement with or without cause at anytime upon giving a 30 days notice to the
Washington County Sheriff or designee. No monies paid will be refunded to the City
upon termination of this contract.
Page 20 of 182
b. During the initial or subsequent term if the City does not want to exercise the automatic
one year renewal, it must provide written notice of such to Provider at least 90 days prior
to December 315' of the current year.
c. If Provider does not renew its contract with Emergency Communication Network for
150,000 minutes of the Code Red Mass Notification System for years 2017, 2018 and or
2019, the Provider will notify the City 30 days prior to December 31 st 2016, December
31 st 2017 or December 31 st 2018 respectively.
WASHINGTON COUNTY OAK PARK HEIGHTS
BY: DATE: BY: DATE:
County Board Chair
BY: DATE: BY: DATE:
County Administrator
BY: DATE:
Sheriff
Approved to as form:
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Asst County Attorney
Page 21 of 182
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Page 22 of 182
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Oak Park Heights
Request for Council Action 6
Meeting Date October 14, 2014
Agenda Item Appoint Mary McComber as Voting Delegate at National League of Cities Annual
Business Meeting
Time Req. 5
Agenda Placement Consent
Originating Department/Requestor Administration/Jennifer Pinski
Requester's Signatufe-r-
Action Requested Appoint Mary McComber as Voting Delegate
Background/Justification (Please indicate any previous action has been taken or if other public
bodies have been advised).
The City has received notice from the National League of Cities (NLC) requesting that it
officially designate a voting delegate to participate in the NLC Annual Business Meeting on
Saturday, November 22, 2014 at the conclusion of the Congress of Cities and Exposition in
Austin, Texas.
Mayor McComber will be attending the Congress of Cities and Exposition representing the City,
but the City should officially designate her as the voting delegate.
Page 23 of 182
ATONAL 2014 Officers
LEAGUE President Fi 1,,ident Immediate Post President Executive Oirettor
Christopher B.Coleman Rolpli E.Becker Melodee Calherl Kean fAnrie Lopez Rogers (hreace 1.Anthony
flT P.a,or ir1a{or Mayor IAnye€ flepoy Executive Uirector
Saint Paul,Minnesota Salt lake Urt,,Utah Joplin,mimuri Arizona Antoinette&Samuel
September 30,2014
Jennifer Pinski
Deputy Clerk
City of Oak Park Heights
14168 Oak Park Blvd
Oak Park Heights, MN 55082-6476
Dear Deputy Clerk Pinski:
The National League of Cities' (NLC)Annual Business Meeting will be held on Saturday,November 22,
2014, at the conclusion of the Congress of Cities and Exposition in Austin, Texas. As a direct member
City, your city is entitled to vote at this meeting. Based on your population as of the 2010 Census, each
member city may cast between one and twenty votes. The number of votes for each population range can
be found below.
POPULATION VOTES POPULATION VOTES
Under 50,000 l vote 500,000—599,999 12 votes
50,000—99,999 2 votes 600,000—699,999 14 votes
100,000— 1 99,999 4 votes 700,000—799,999 16 votes
200,000—299,999 6 votes 800,000—899,999 18 votes
300,000---399,999 8 votes 900,000 and above 20 votes
400,000—499,999 10 votes
To be eligible to cast a city's vote, a voting delegate and alternate(s)must be officially designated by the
city using the enclosed credentials form and the city's membership in NLC must be up to date. NLC
bylaws expressly prohibit voting by proxy.
At the Congress of Cities,the voting delegate must pick up and sign for the city's voting card at the Ask
NLC Booth before the Annual Business Meeting and must be present at the Annual Business Meeting to
cast the city's vote. The Ask NLC Booth will be open during scheduled times throughout the Congress of
Cities and Exposition.
Please return the completed farm to NLC by mail,fax(202-626-3109)or email
membership @rile.org before November 5,2014,and keep a copy for your files. If you have any
questions, please contact Mae Davis, at mdav isi nlc.org or 202-626-3150; or contact Gail Remy,
Director of Member Relations at remyrr,nlc.crr - or 202-626-3026.
Thank you,
Clarence E.Anthony
Executive Director
Enclosure
1301 Pennsylvania Ave., tl's'J,Vhshin ton,DC 20004-1163 202.626-3000 Fax: 202-626.3043 www.nlc.org g � � � g Page 24 of 182
Oak Park Heights �
Request for Council Action
Meeting Date October 14, 2014
Agenda Item Authorize Deputy Clerk Jennifer Pinski to Attend NLC Conference in Austin,
Texas November 19 - 22
Time Req. 5
Agenda Placement Consent
Originating Department/Requestor inistration/Jennifer Pinski
Requester's Signature
Action Requested Authorize
Background/Justification (Please indicate any previous action has been taken or if other public
bodies have been advised).
I am requesting authorization to attend the NLC Conference in Austin, Texas this year. There is
funding in the Conferences/Schools Budget for 2015 for the expense of the conference.
Page 25 of 182
THIS PAGE IS INTENTIONALLY LEFT BLANK
Page 26 of 182
a .
,•
Oak Park Heights
Request for Council Action 8
Meeting Date October 14, 2414
Agenda Item A rove Stillwater and Oak Park Heights Convention and Visitor's Bureau
Bylaws
Time Req. o
Agenda Placement Consent
Originating Department/Requestor Councilmember Chuck Dougherty
Requester's Signature
Action Requested Approve
Background/Justification(Please indicate any previous action has been taken or if other public
bodies have been advised).
See Attached.
Page 27 of 182
STILLWATER & OAK PARK HEIGHTS
Convention & Visitors Bureau (CVB)
BYLAWS
Revised: 30 July 2014
TABLE OF CONTENTS
PAGE
1 . Mission Statement & Bylaws - 2/08 1 — 10
2. Certificate & Articles of Incorporation 11
3. Adoption, Certification 12
4. ATTACHMENTS [ Certificate of 13-17
Incorporation, Articles of Incorporation]
CVB BYLAWS
1. General Mission Statement & Bylaws Effective: Feb. 2008
MISSION STATEMENT
The mission of the Stillwater and Oak Park Heights CVB is to increase the
economic benefit of tourism with an emphasis on overnight stays.
1
Page 28 of 182
BYLAWS
ARTICLE I — GENERAL
Section 1..
The name of the corporation shall be Stillwater and Oak Park Heights
Convention and Visitors Bureau, Inc., hereafter referred to as CVB.
Section 2.
The objective of the CVB shall be to promote tourism and marketing of the
Greater Stillwater area. The intent of the CVB shall be to attract overnight
visitors, groups, meetings and conventions.
Section 3.
No assets of the corporation shall inure to the benefit of or be paid to any person
who is a member, director, officer, or other private person, except that
reasonable compensation may be allowed for services rendered in furtherance of
the goals of the CVB.
2
Page 29 of 182
ARTICLE 11 — MEMBERSHIP
Section 1.
Voting membership in the CVB shall be limited to lodging properties within the
municipal boundaries of Stillwater and Oak Park Heights which collect and remit
a local option lodging tax as defined in Minnesota Statutes 469.194 and
authorized by city ordinance. Voting members must be current and in good
standing in said collection and remittance obligations with no defaults or
delinquencies not under appeal pursuant to the terms of said city ordinance -
lodging tax.
Each lodging business properties entity or individual shall be entitled to one
representative membership, whether voting or non-voting, in the CVB.
Section 2.
It is acknowledged that there shall be two lodging classification types:
1. Properties operating more than ten rental rooms shall be known as
a Hotel or large property
2. Any property having ten rooms or less shall be known as a Bed and
Breakfast or small property.
Section 3.
Non-voting associate may be granted to individuals or businesses meeting the
associate member requirements, as set forth by the CVB Board of Directors at
their discretion and upon payment of any applicable dues.
Section 4.
Any associate member may be suspended or revoked for cause as determined
by the Board of Directors, provided that such membership may appeal to the
board at the next regular or special meeting of the members, at which time
he/she may be reinstated by a majority vote of the Board.
Page 30 of 182
ARTICLE III — DIRECTORS
Section 1.
The affairs of the CVB shall be under the management of a Board of Directors
and such officers, agents, employees or committees as the Board may elect,
employ or appoint.
Section 2.
Any voting member in good standing is eligible to serve on the Board of Directors.
The Board of Directors shall consist of the following seats with full voting
privileges:
One (1) representative from Oak Park Heights large or small
properties, appointed by the representative group.
Two (2) representatives from Stillwater small
properties - appointed by the representative group.
Four (4) representatives from Stillwater/Oak Park Heights large
properties appointed by the representative group.
The Board of Directors shalt include four non-voting associates to
sit on the board in a consultant roll shall include:
o One (1) representative from IBA (Downtown Mainstreet Business
Association), appointed by the representative group.
❑ One (1) representative from Stillwater Chamber of Commerce,
appointed by the representative group.
A representative of the City of Oak Park Heights
❑ A representative of the City of Stillwater
Mid-term Board vacancies will be filled by appointment by the appropriate
representative group.
4
Page 31 of 182
(ARTICLE III — DIRECTORS continued)
Section 3.
Powers and Duties of the Board of Directors shall include, but not be limited to
• Election of Officers.
❑ • Set agenda for meetings [ regular, special, annual]
❑ • Employ personnel and set salaries.
• Set all dues and fees for associate membership to the CVB.
❑ • Keep the membership informed of the CVB's activities.
❑ • Make decisions on expenditures of CVB revenues.
❑ • Formulate marketing plans and advertising campaigns.
C, • Authorize representatives to attend trade shows, conferences or
other tourism related functions
❑ • Enter into agreements or contracts with other firms, businesses
or individuals working in furtherance of the CVB's stated goals.
Section 4.
Officers of the Board of Directors shall be limited to voting members in good
standing. Only members of the Board shall be elected as officers. Officers shall
be elected for two (2) years at the first regular meeting of the Board of Directors
to be held after the annual meeting of the membership.
The duties of the officers shall include but not be limited to:
President :
• Preside at general CVB meetings and at all meetings of the Board of
Directors.
• Make appointments to fill vacancies on the Board of Directors or for Officers
for the remainder of the term, subject to the approval of the Board.
• Supervise the duties of all employees, contracted service providers or
agents of the CVB, as directed by the Board of Directors.
• Represent the CVB at any meeting, convention, or other gathering where
the interests of the CVB are at issue, or when so directed by the Board of
Directors.
5
Page 32 of 182
(ARTICLE III — DIRECTORS continued)
Vice President :
• Perform all duties of the President in his/her absence.
• In the event of death, resignation or retirement of the President, assume
the duties of the president as President Pro Tern for the remainder of
the current term and supervise the appointment of a new Vice President.
• Represent the Board at the request of the President.
Secretary :
• Oversee the record keeping of the CVB's meetings and activities
• Gather and distribute approved meeting minutes to CVB membership
• Represent the Board at the request of the President
Treasurer :
• Provide a full and accurate account of receipts and disbursements of the
CVB that be kept in books belonging to the CVB.
• Sign all checks and drafts that are properly drawn on CVB funds. Any check
over $500.00 requires two signatures.
• Ensure all monies are deposited in the name of the CVB, in such depositories or
safety vaults that may be designated by the Board of Directors.
• Represent the Board at the request of the President.
• Ensure that an annual audit is performed.
Section 5.
Commencing January 01, 2015, the board shall determine and implement a
policy to modify the dates of service of each two board positions to result in a
staggering of the terms of the board membership for election or reelection
purposes. To achieve the directives of this provision, in no case shall a
board seat be occupied for a period of more than 3 years from the date
of January 01, 2015.
CVB officer positions shall serve terms of two years in length and may be
elected to consecutive terms, not to exceed 3 consecutive terms per seat.
6
Page 33 of 182
(ARTICLE III — DIRECTORS continued)
Section 6.
Any Director who misses three consecutive meetings, without a valid reason
given to a Board Officer prior to the third missed meeting, may result in his/her
membership on the board to be terminated. Upon motion of a sitting board
member, termination shall be determined by simple majority of attending
board members by ballot vote at a regularly scheduled meeting of the board.
Section 7.
Directors must submit their resignation to the President.
Section 8.
A Conflict of Interest policy may be included in this organization's policy manual..
7
Page 34 of 182
ARTICLE IV — MEETINGS
Section 1.
An annual meeting of the membership of the CVB, open to the public, - except
where closed pursuant to the Open Meeting Laws of Minnesota [Mn Stat. Ch
13D ] - shall be held at such time and place as designated by the Board of
Directors. Each member shall be notified by e-mail or postal mail at least three
(3) weeks in advance of said meeting.
Prior to or at the Annual meeting each representative group must declare in
writing to the Board of Directors their appointed representative for an open board
seat.
Annual meetings shall be open to all members of the CVB in good standing and
Associate voting members with all dues and assessments paid in full. Any and
all business matters pertaining to the CVB may be considered and acted upon at
the annual meeting, provided the same be in writing and presented to the Board
of Directors at least fifteen (15) days prior to the meeting, so said business may
be placed on the agenda.
All regular or special meetings of the CVB shall be similarly open to the
public, except where closed pursuant to and in compliance with, the Open
Meeting Laws of the State of Minnesota [ Mn Stat. Ch. 13D ].
Section 2.
Meeting reports will be made to participating city councils by CVB board -
approved meeting minutes and CVB board-approved marketing reports sent to
city councils.
Section 3.
The Board of Directors will meet at least four (4) times per year, at such time and
place as they may determine. Additional meetings by the Board may be held
throughout the year as is deemed necessary by the Board or called for by the
President or two (2) or more board members. Board meetings are open to the
membership and invited guests for observation; however, the President may
invite membership comments at a specified time period and duration.
Section 4.
A quorum shall be required at all meetings, in which at least a simple majority of
the Directors with full voting privileges are present.
8
Page 35 of 182
ARTICLE V — AMENDMENTS TO BYLAWS
Section 1.
These bylaws shall be brought forward for adoption or amendment by a two-
thirds (213) vote of the Board of Directors.
Section 2.
After adoption of amended bylaws, by the Board Directors, The amended bylaws
must be submitted to the City Councils of Oak Park Heights and Stillwater for
approval.
Section 3.
Upon approval from the Cities and the Board, the President shall notify the
membership of the pending bylaw amendments and the right to call a vote within
ten [1 D ] days of board approval, by US Mail - postage pre-paid.
Section 4.
Upon notice, any member in good standing may call for a balloted election of the
bylaw amendments. Requests for a Call to Vote shall be filed with the President
within fourteen (14) days after notice has been given of the pending amendments.
Section 5.
If no Call to Vote is filed within the designated period, the pending bylaw
amendments shall be voted upon by the Board of Directors at their next
scheduled regular meeting.
If a Cali to Vote is received, pending bylaw changes shall be placed on a ballot.
The President shall mail this ballot to all full members in good standing at least
fourteen (14) days before the Board meeting at which said balloting is
scheduled and shall be closed and tallied.
Section 6.
The President and Secretary, or their designee, shall validate the ballots and
election. They shall report the results of the vote to the Board of Directors.
Section 7.
The Board of Directors shall, at its regular Board meeting, declare the
amendments adopted or not adopted according to the majority of the votes cast.
9
Page 36 of 182
ARTICLE VI - DISSOLUTION
In the event of, or at the time of dissolution of the CVB, any funds or assets
remaining after paying all costs and expenses of such dissolution shall revert and
be distributed as directed by law and the provisions of the Articles of
Incorporation attached hereto [Article VII].
10
Page 37 of 182
CERTIFICATE OF INCORPORATION and
ARTICLES OF INCORPORATION
ARTICLE VII
Copies of the Certificate of Incorporation and Articles of Incorporation of the
Stillwater & Oak Park Heights Convention & Visitor Bureau are attached
hereafter and fully incorporated herein and as a part hereof.
11
Page 38 of 182
ARTICLE I
ADOPTION, CERTIFICATION
These Bylaws may be altered, amended or repealed and new Bylaws may be
adopted by the Board of Directors at any regular or special meeting of the Board
of Directors.
The above Bylaws are certified to have been adopted by the Board of Directors
of the Stillwater & Oak Park Heights Convention & Visitor Bureau on the
day of 2014.
President of CVB
Vice President of CVB
Secretary of CVB
Treasurer of CVB
12
Page 39 of 182
4
ARTICLE I
Attachments
Certificate of Incorporation, Articles of Incorporation
[pp 10-13]
13
Page 40 of 182
--
Ag
E .., ate of Minneso,
SECRETARY OF STATE
- ,,
:.:
CERTIEICATB OF INCORPORATI DN E,a,zr
(s p
I, Mark Ritchie, Secretary of State of Minnesota, pl;.�;:,.
do certify that: Articles of Incorporation, duly signed LP
"V
and acknowledged under oath, have been filed on this date =`M"
in the Ott,-co of the Secretary cf State, ., t'ye
incorporation of the following corporation, under and in
accordance with the provisions of the chapter of Minn e ata Er—
Statutes listed below. .
This corporation is now legally organized under the `=>:
laws of Minnesota. 'w
Corporate Name: Stillwater & Oak Park Heights ter,
Convention & visitor Bureau
Corporate Charter Number.: 2709237 2 ;
Chapter Formed under: 317A _}
This certificate has been issued on 02/08/2008.
HEI=
i Secretary of State. t
14
Page 41 of 182
/�r7 i INNIM119
N P"t/I{_ 27092370002
ARTICLES OF INCORPORATION
OF
STILLWATER&OAK PARK HEIGHTS
CONVENTION&VISITOR BUREAU
The undersigned incorporators are individuals 18 years of age or older and adopt the following articles of
incorporation to form a nonprofit corporation(Chapter 317A).
ARTICLE I—NAME
The name of this corporation shall be Stillwater&Oak Park Heights Convention&Visitor Bureau.
ARTICLE 11—REGISTERED OFFICE ADDRESS
The place in Minnesota where the principal office of the corporation is to be located at 2190 Frontage Road West,
Stillwater,Minnesota 55082,
ARTICLE III—PURPOSE
This corporation is a business organization as specified in Section 501(c)(6)of the Internal Revenue Code,or the
corresponding section of any future federal tax code.
The purpose of this corporation is to market and promote the Stillwater and Oak Park Heights areas as business
and leisure travel destinations.
ARTICLE IV-EXEMPTION REQUIREMENTS
At all times the following shall operate as conditions restricting the operations and activities of the corporation:
L No part of the net earning of the organization shall inure to the benefit of,or be distributable to its
members,trustees,officers,or other private persons,except that organizations shall be authorized and
empowered to pay reasonable compensation for services rendered and to make payments and
distributions in furtherance of the purpose set forth in the purpose clause hereof.
2. No substantial part of the activities of the corporation shall constitute the carrying on of propaganda
or otherwise attempting to influence legislation,or any initiative or referendum before the public,and
the corporation shall not participate in,or intervene in(including by publication or distribution of
statements),any political campaign on behalf of,or in opposition to,any candidate for pub]is office.
3. Notwithstanding any other provisions of this document,the organization shall not carry on any other
activities not permitted to be carried on by an organization exempt from federal income tax under
Section 501(c)(6)of the Internal Revenue Code or corresponding section of any future tax code,or by
Page 1 of 3
15
Page 42 of 182
an organization,contributions to which are deductible under section 170(c)(2)of the Internal Revenue
Code,or corresponding section of any future tax code.
ARTICLE V—MEMBERSHIP&BOARD OF DIRECTORS
This organization shall have members,The eligibility,rights and obligations of the members will be determined
by the organization's bylaws.
The management of the affairs of the corporation shall be vested in a board of directors,as defined by the
corporation's bylaws.No director shall have any right,title,or interest in or to any property of the corporation.
The number of directors constituting the initial board of directors is eight(8);their names and addresses are as
follows:
Steve Roll Jeff Stanton
2 1.90 Frontage Road West,Stillwater,MN 2200 Frontage Road West,Stillwater,MN
Chuck Dougherty Jerry Helmberger
15330 58r'Street North,Oak Park Heights,MN 303 Fourth Street North,Stillwater,MN
Kevin Shields David Beaudet
102 Second Street North,Stillwater,MN 14168 Oak Park Blvd,Oak Park l[eights,MN
Ken Harycki Sheryl E-Marshall
216 Fourth Street North,Stillwater,MN 206 Second Street South,Hudson,WI
Members of the initial board of directors shall serve until the first annual meeting,at which their successors will
be duty elected and qualified,or removed as provided in the bylaws.
ARTICLE VI-PERSONAL LIABILITY
No member,officer,or director of this corporation shall be personally liable for the debts or obligations of this
corporation of any nature whatsoever,nor shall any of the property of the members,officer,or directors be subject
to the payment of the debts or obligations of this corporation.
ARTICLE VII—DURATIONIDISSOLUTION
The duration of the corporate existence shall be perpetual until dissolution.
Upon the dissolution of the organization,assets of the corporation shall be distributed for one or more exempt
purposes within the meaning of Section 501(c)(6)of the Internal Revenue Code,or corresponding section of any
Page 2 of 3
16
Page 43 of 182
future federal tax code,or shall be distributed to the federal goverment,or to a state or local government,for a
public purpose.
ARTICLE VIII—INCORPORATORS
fn witness whereof,we,the undersigned,have hereunto subscribed our names for the purpose of forming the
corporation under the laws of the State of Minnesota and certify we executed these Articles of Incorporation this
16th day of January of 2008.
22 1.
Steve Roll,President "'—
Stillwater Super 8,2190 Frontage Road West,Stillwater,Minnesota 55082
0, f
Jeff Starfion,Vice President
Country Inn&Suites,2204 F tage Road Wesi yStiliwater,Minnesota 55082
Chucicitugh6ty,Treas rvtr --
Cover Park Mahiar, 15330 5�`s Street T�opth,Oak Park Heights,Minnesota 55082
Jcrn I1cln}hcrgct S�t; U4 FY
Aurora Sta cs n,303 Fourth Street hjrth,Stillwater,Minnesota 55082
Kevi hte ds — —
lawe n n cc t North,$' w ¢r,Minnesota 55082
David udet
Mayor,City of Qk Park Hei
City of Oak Park a Heights. 68 Oak P oulevard,Oak Park Heights,Minnesota 55082
Ken E laryeki
Mayor,Cit Stillwater
City of h Iwater )6 Fourth S North,St water,Minnesota 55082
/,
SheFyl"T;-Mar�ht II ��
Vice Presider,(j'-Qiltc 'Stillzwater Chamber of Commerce
PressEntert,206 Second Street South,Hudson,Wisconsin 54016
rHERrNip
wr,
Page 3 nf3
Page Vof 182
A
Oak Park Heights
Request for Council Action 9
Meeting Date October 14, 2014
Agenda Item A pprove Premises Pen-nit Application for Gambling by American Legion Post 491
at Stillwater Bowl 5862 Omaha Avenue North
Time Req. 0
Agenda Placement Consent
Originating Department/Requestor Administration/Jennifer Pinski
C ,
Requester's Signatur 4L
Action Requested Approve
Background/Justification(Please indicate any previous action has been taken or if other public
bodies have been advised).
See Attached.
Page 45 of 182
RESOLUTION 14-10-45
CITY OF OAK PARK HEIGHTS
WASHINGTON COUNTY, MINNESOTA
RESOLUTION APPROVING A GAMBLING PREMISES PERMIT
APPLICATION MADE BY AMERICAN LEGION POST 491 FOR GAMBLING
AT STILLWATER BOWL IN OAK PARK HEIGHTS
WHEREAS, Wayne Peterson, on behalf of American Legion Post 491 has
applied with the State of Minnesota Gambling Control Board for a permit to conduct
lawful gambling activity at the site of Stillwater Bowl, 5862 Omaha Avenue North; and
WHEREAS,the City of Oak Park Heights has reviewed the application and finds
that its purposes meet the necessary community standards; and
WHEREAS, the City of Oak Park Heights has solicited the input of the public
and there have been no objections to the granting of the application for the permit as
applied for by American Legion Post 491 with the State of Minnesota Gambling Control
Board.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL FOR
THE CITY OF OAK PARK HEIGHTS AS FOLLOWS:
That the application of American Legion Post 491 with the State of Minnesota
Gambling Control Board to for a permit to conduct lawful gambling activity at the site of
Stillwater Bowl, 5862 Omaha Avenue North, Suite 2, within the City of Oak Park
Heights and the same are hereby approved.
Passed by the City Council of Oak Park Heights this 14t' day of October, 2014.
Mary McComber
ATTEST: Mayor
Eric A. Johnson
City Administrator
Page 46 of 182
MINNESOTA LAWFUL.GAMBLING 12/12 Page 1 of 2
LG214 Premises Permit Application Annual Fee $15® (NON REFUNDABLE)
Required Attachments to LG214
1. If the premises is leased, attach a copy of your lease. Mail the application and required attachments to:
Use LG215 Lease for Lawful Gambling Activity. Gambling Control Board
2. $150 annual premises permit fee, for each permit 1711 West County Road B, Suite 300 South
(non refundable). Roseville, MN 55113
Make check payable to "State of Minnesota."
Questions? Call 651-539-1900 and ask for Licensing.
Organization Information
1. Organization name American Legion Post 491 License number 00467
2. Chief executive officer(CEO) Wayne Peterson Daytime phone (612)723-1175
3. Gambling manager Marion Coffman Daytime phone (651)491-2418
Gambling Premises Information
4. Current name of site where gambling will be conducted Stillwater Bowl
5. List any previous names for this location D6yuC5
6. Street address where premises is located 5862 Omaha Ave No.
Do not use a P.O. box number or mailing address.
7. City Township County Zip code
Oak Park Heights �� Washington 55082
8. Does your organization own the building where the gambling will be conducted?
QYes 1 r l No If no, attach LG215 Lease for Lawful Gambling Activity.
A lease is not required if only a raffle will be conducted.
9. Is any other organization conducting gambling at this site? W]Yes No Don't know
10. Has your organization previously conducted gambling at this site? []Yes Ll No WI Don't know
Gambling Bank Account Information. Must be in Minnesota.
11. Bank name Bank account number
First State Bank &Trust 4970047 4824701
12. Bank street address City State Zip code
950 N. Hwy 95 Bayport MN 55003
All Temporary and Permanent Off-site Storage Spaces
13. Address (Do not use a P.O. box number) City State Zip code
350 St. Croix Tr. No. Lakeland MN 55043
14. Address (Do not use a P.O. box number) City State Zip code
MN
Page 47 of 182
LG214 Premises Permit Application 12/12 Page 2 of 2
Acknowledgment by Local Unit of Government: Approval by Resolution
CITY APPROVAL COUNTY APPROVAL
for a gambling premises -i for a gambling premises
Local unit of government
located within city limits must sign I located in a township
City name County name
Date approved by city council Date approved by county board
Resolution number Resolution number
Signature of city personnel Signature of county personnel
Title Date signed Title Date signed
TOWNSHIP NAME
Complete below only if required by the county.
On behalf of the township, I acknowledge that the organization
is applying to conduct gambling activity within the township
limits. [A township has no statutory authority to approve or
deny an application, per Minnesota Statutes 349.213, Subd. 2.1
Print township name
Signature of township officer
Title Date
Acknowledgment and Oath
1. I hereby consent that local law enforcement officers, 6. I assume full responsibility for the fair and lawful
the Board or its agents, and the commissioners of operation of all activities to be conducted.
revenue or public safety and their agents may enter 7. I will familiarize myself with the laws of Minnesota
and inspect the premises. governing lawful gambling and rules of the Board and
2. The Board and its agents, and the commissioners agree, if licensed, to abide by those laws and rules,
of revenue and public safety and their agents are including amendments to them.
authorized to inspect the bank records of the 8. Any changes in application information will be submitted
gambling account whenever necessary to fulfill to the Board no later than 10 days after the change has
requirements of current gambling rules and law. taken effect.
3. I have read this application and all information 9. I understand that failure to provide required information
submitted to the Board is true, accurate, and or providing false or misleading information may result
complete. in the denial or revocation of the license.
4. All required information has been fully disclosed. 10. I understand the fee is nonrefundable regardless of
5. I a the ief executiveg,,,6WA r of the organization. license approval/denial.
Signature Ch of xecutive Officer(designee may not sign) Dam f
Print name Wayne Peterson
Data privacy notice:The information requested on this Board.All other information provided will be Safety;Attorney General; Commissioners
form (and any attachments)will be used by the Gambling private data about your organization until of Administration,Minnesota Management
Control Board(Board)to determine your organization's the Board issues the permit,when the &Budget,and Revenue; Legislative
qualifications to be involved in lawful gambling activities in Board issues the permit,all information Auditor,national and international gam-
Minnesota.Your organization has the right to refuse to provided will become public.If the Board bling regulatory agencies; anyone pursuant
supply the information; however,if your organization does not issue a permit,all information to court order; other individuals and
refuses to supply this information,the Board may not be provided remains private,with the excep- agencies specifically authorized by state
able to determine your organization's qualifications and, tion of your organization's name and or federal law to have access to the
as a consequence,may refuse to issue a permit. If your address which will remain public. information; individuals and agencies for
organization supplies the information requested,the Board Private data about your organization are which law or legal order authorizes a new
will be able to process your organization's application. available to: Board members,Board staff use or sharing of information after this
Your organization's name and address will be public infor- whose work requires access to the infor- notice was given; and anyone with your
mation when received by the mation; Minnesota's Department of Public written consent.
This form will be made available in alternative format, i.e. large print, Braille, upon request.
Page 48 of 182
MINNESOTA LA��'FIII_ GAMBI_lNG
LG215 Lease for Lawf u Gam big ng Activity Revised 11/12 Page 1 of 2
Organization Address License/site number Daytime phone
American Legion Post 491 263 N. 3rd St. 100467 6514395463
Name of leased premises Street address City State Zip Daytime phone
Stillwater Bowl 5862 Omaha Ave No Oak Park Heights MN 55082 6514392444
Name legal owner Business/street address City` r�_ St Zip_ Y, Daytime phone Namelolf lessor [if same as ���d
legal owner, write in "S ME"
Check applicable item:
Z1. New lease. Do not submit existing lease with amended changes.
Date that the changes will be effective. Submit changes at least 10 days before the effective date of the change.
2. New owner. Effective date Submit new lease within 10 days after new lessor assumes ownership.
Check all activity that will be conducted (No lease required for raffles)
® Pull-tabs [paper] 1-1 Electronic pull-tabs [must also sell paper pull-tabs]
❑ Pull-tabs [paper] with dispensing device F-1 Linked electronic bingo
Electronic games may only be conducted at:
® Bar bingo Bingo (1)a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent
❑Tipboards malt beverages(but does not include a gent-ral food store or drug store permitted to sell
alcoholic beverages under Minn. Slat. 340A.405, subdivision 1]; or
V addlewheel Fl Paddlewheel with table (2)a premises ovhere bingo is conducted as the primary busmess and has a seating
capacity of at feast 100.
PULL-TAB, TIPBOARD, AND PADDLEWHEEL RENT
Separate rent for booth and bar ops.
BOOTH OPERATION - Some or ail sales of gambling equipment are conducted by an employee/volunteer of a
licensed organization at the leased premises.
ALL GAMES, including electronic games - Monthly rent to be paid, _r%, not to exceed 10% of gross profits for that month.
• Total rent paid from all organizations for only booth operations at the leased premises may not exceed $1,750.
• The rent cap does not include BAR OPERATION rent for electronic games Conducted by the lessor.
BAR OPERATION -All sales of gambling equipment conducted by the lessor or lessor's employee.
ELECTRONIC GAMES- Monthly rent to be paid, %, not to exceed 150/o of the gross profits for that month from
electronic pull-tab games and electronic linked bingo games.
ALL OTHER GAMES-Monthly rent to be paid, 10 %, not to exceed 20% of gross profits from all other forms of lawful gambling.
• If any booth sales conducted by a licensed organization at the premises rent may not exceed 10%of gross profits for
that month and is subject to booth operation $1750 cap.
BINGO RENT for leased premises where bingo is the primary business conducted, such as bingo hall.
Bingo rent is limited to one of the following:
• Rent to be paid, %, not to exceed 100/6 of the monthly gross profit from all lawful gambling activities held during
bingo occasions,excluding bar bingo.
- OR-
• Rate to be paid $ per square foot, not to exceed 110%of a comparable cost per square foot for leased space, as
approved by the director of the Gambling Control Board. The lessor must attach documentation, verified by the organization,
to confirm the comparable rate and all applicable costs to be paid by the organization to the lessor.
• Rent may not be paid for bar bingo.
• Bar bingo does not include bingo games linked to other permitted premises.
LEASE TERMINATION CLAUSE. Must be completed.
The lease may be terminated by either party with a written 30 day notice.
Other terms
Page 49 of 182
L0,�1 L5 L a(, ' ,, V®T La u8 2a M b I p"9 ` C'_1,11'j It_I Revised 11/12 Page 2 of 2
Lease Term -The term of this agreement will be concurrent with the Other Prohibitions-The lessor will not impose restrictions
premises permit issued by the Gambling Control Board (Board). on the organization with respect to providers (distributor or
linked bingo game provider) of gambling-related equipment
Management-The owner of the premises or the lessor will not and services or in the use of net profits for lawful purposes.
manage the conduct of lawful gambling at the premises.
The lessor, the lessor's immediate family, any person residing
The organization may not conduct any activity on behalf of the lessor in the same residence as the lessor, and any agents or
on the leased premises. employees of the lessor will not require the organization to
Participation as Players Prohibited -The lessor will not perform any action that would vioiate statute or rule. The
participate directly or indirectly as a player in any lawful gambling lessor must not modify or terminate this lease in whole or in
conducted on the premises. The lessor's immediate family and any part due to the lessor's violation of this provision. If there is
agents or gambling employees of the lessor will not participate as a dispute as to whether a violation occurred, the lease will
remain in effect pending a final determination by the
layers in the conduct of lawful gambling on the premises, except
players
by Minnesota Statutes 349.181. Compliance Review Group (CRG) of the Gambling Control
as Board. The lessor agrees to arbitration when a violation of
Illegal Gambling -The lessor is aware of the prohibition against this provision is alleged. The arbitrator shall be the CRG.
illegal gambling in Minnesota Statutes 609.75, and the penalties for
illegal gambling violations in Minnesota Rules 7865.0220, Subpart 3. Access to permitted premises-Consent is given to the
In addition, the Board may authorize the organization to withhold Board and its agents, the commissioners of revenue and public
rent for a period of up to 90 days if the Board determines that safety and their agents, and law enforcement personnel to
illegal gambling occurred on the premises or that the lessor or its enter and inspect the permitted premises at any reasonable
employees participated in the illegal gambling or knew of the time during the business hours of the lessor. The organization
gambling and did not take prompt action to stop the gambling. has access to the premises during any time reasonable and
Continued tenancy of the organization is authorized without payment when necessary for the conduct of lawful gambling.
of rent during the time period determined by the Board for violations Lessor records-The lessor must maintain a record of all
of this provision, as authorized by Minnesota Statutes 349.18, money received from the organization, and make the record
Subdivision 1(a). available to the Board and its agents, and the commissioners
of revenue and public safety and their agents upon demand.
To the best of the lessor's knowledge,the lessor affirms that any The record must be maintained for 3-1/2 years.
and all games or devices located on the premises are not being used,
and are not capable of being used, in a manner that violates the Rent all-inclusive-Amounts paid as rent by the organization
prohibitions against illegal gambling in Minnesota Statutes 609.75. to the lessor are all-inclusive. No other services or expenses
provided or contracted by the lessor may be paid by the
Notwithstanding Minnesota Rules 7865.0220, Subpart 3, an organization, including but not limited to:
organization must continue making rent payments under the terms - trash removal -janitorial and cleaning services
of this lease, if the organization or its agents are found to be solely -electricity, heat -other utilities or services
responsible for any illegal gambling, conducted at this site,that is -snow removal - lawn services
prohibited by Minnesota Rules 7861.0260, Subpart 1, item H or -storage security, security monitoring
Minnesota Statutes 609.75, unless the organization's agents -cost of any communication network or service required to
responsible for the illegal gambling activity are also agents or conduct electronic pull-tabs games or electronic bingo
employees of the lessor. - in the case of bar operations, cash shortages.
The lessor must not modify or terminate the lease in whole or in Any other expenditures made by an organization that is related
part because the organization reported, to a state or local law to a leased premises must be approved by the director of the
Gambling Control Board. Rent payments may not be made to
enforcement authority or the Board, the conduct of illegal gambling an individual.
activity at this site in which the organization did not participate.
Acknowledgment of Lease Terms
I affirm that this lease is the total and only agreement between the lessor and the organization, and that all obligations and
agreements are contained in or attached to this lease and are subject to the approval of the director of the Gambling Control Board.
Other terms of the lease
Minimum amount nak or'f 0?0�
Signature of lessor Date Signo re ororganiz 6pri fic+al [lessee] Date/
� l
Print name and title of lessor. 1 �{- rint name and title of i ee
IV .. to f 1 ct L �{� r � � Marion Coffman Gar`b' Hng Manager
Questions? Contact the Licensing Section, Gambling Control Board, at 651-539-1900. This publication will be made available in
alternative format (i.e. large print, Braille) upon request. Data privacy notice: The information requested on this form and any
attachments will become public information when received by the Board, and will be used to determine your compliance with
Minnesota statutes and rules governing lawful gambling activities.
Reset Form— Pant Form
Page 50 of 182
Oak Park Heights 10
Request for Council Action
Meeting Date: October 14, 2014
Agenda Item Title Approve Redpath and Company, Auditing Services for December
31_, 2014 _. Time Required 1 min
Agenda Placement Consent
Originating Department/Requester Finance-Betty Caruso Finance Director
Requester's Signature
Action Requested Approve auditing services contract with Redpath and Company.
For December 31, 2014
Background/Justification (Please indicate any previous action, financial
implications including budget information and recommendations).
I have received the standard engagement letter for auditing services for the year
ending December 31, 2014, from Redpath and Company.
Redpath and Company is proposing a 3% increase ($1,000) in fees for completing
the audit for 2014, total contract of$36,900.
This fee is split between the General Fund, Water Utility Fund, Sewer Utility Fund,
and the Capital Revolving Fund.
Page 51 of 182
CLIENT COPY
A N D C O M P A N Y
August 28, 2014
City of Oak Park Heights
14168 Oak Park Boulevard
P.O. Box 2007
Oak Park Heights, MN 55082-2007
We are pleased to confirm our understanding of the services we are to provide the City of
Oak Park Heights, Minnesota(the City) for the year ending December 31, 2014. The scope
of services includes the following:
Audit and Related Services
• We %\ill audit the financial statements of the governmental activities, the business-
t%he activities, each major fund, and the aggregate remaining fund information,
including the related notes to the financial statements, which collectively comprise
the basic financial statements of the City as of and for the year ending December 31,
2014. Accounting standards generally accepted in the United States of America
provide for certain required supplementary information (RSl), such as management's
discussion and analysis (MD&A), to supplement the City's basic financial statements.
Such information, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. As part of our engagement, we will apply
certain limited procedures to the City's RSl in accordance with auditing standards
generally accepted in the United States of America. These limited procedures will
consist of inquiries of management regarding the methods of preparing the
information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We will not express an
opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any
assurance. The following RS1 is required by generally accepted accounting principles
and will be subjected to certain limited procedures, but will not be audited:
• Management's discussion and analysis
• Budgetary Comparison Schedule(s)
�Q Page 52 of 182
City of Oak Park Heights
Contract for Auditing Services
Page 2
We have also been engaged to report on supplementary information other than RSI
that accompanies the City's financial statements. We will subject the following
supplementary information to the auditing procedures applied in our audit of the
financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records
used to prepare the financial statements or to the financial statements themselves,
and other additional procedures in accordance with auditing standards generally
accepted in the United States of America and will provide an opinion on it in relation
to the financial statements as a whole:
• Combining and Individual Fund Statements and Schedules
• Schedule of Expenditures of Federal Awards
The following other information accompanying the financial statements will not be
subjected to the auditing procedures applied in our audit of the financial statements, and our
auditor's report will not provide an opinion or any assurance on that information:
• Introductory section
• Statistical section
The following other reports will be issued in conjunction with the financial audit:
• State Legal Compliance Audit
• Federal Single Audit
Nonaudit Services
• Preparation, copying and binding of financial statement document (CAFR)
A_ udit Objectives
The objective of our audit is the expression of opinions as to whether your financial
statements are fairly presented, in all material respects, in conformity with U.S. generally
accepted accounting principles and to report on the fairness of the supplementary information
referred to in the second paragraph when considered in relation to the financial statements
taken as a whole. The objective also includes reporting on:
• Internal control related to the financial statements and compliance with the provisions
of laws, regulations, contracts, and grant agreements, noncompliance with which
could have a material effect on the financial statements in accordance with
Government Auditing Standards.
�� F7Q Page 53 of 182
City of Oak Park Heights
Contract for Auditing Services
Page 3
• Internal control related to major programs and an opinion (or disclaimer of opinion)
on compliance with laws, regulations, and the provisions of contracts or grant
agreements that could have a direct and material effect on each major program in
accordance with the Single Audit Act Amendments of 1996 and OMB Circular A-
133,Audits of States, Local Governments, and Non-Profit Organizations.
The Government Auditing Standards report on internal control over financial reporting
and on compliance and other matters will include a paragraph that states (1) that the purpose
of the report is solely to describe the scope of testing of internal control over financial
reporting and compliance and the result of that testing and not to provide an opinion on the
effectiveness of internal control over financial reporting or on compliance, and (2) that the
report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering internal control over financial reporting and compliance. The OMB
Circular A-133 report on internal control over compliance will include a paragraph that states
that the purpose of the report on internal control over compliance is solely to describe the
scope of testing of internal control over compliance and the results of that testing based on
the requirements of OMB Circular A-133. Both reports will state that the report is not
suitable for any other purpose.
Our audit will be conducted in accordance with auditing standards generally accepted in
the United States of America, the standards for financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; the Single Audit
Act Amendments of 1996; and the provisions of OMB Circular A-133, and will include tests
of the accounting records, a determination of major program(s) in accordance with OMB
Circular A-133, and other procedures we consider necessary to enable us to express such
opinions and render the required reports. We cannot provide assurance that unmodified
opinions will be expressed. Circumstances may arise in which it is necessary for us to
modify our opinions or add emphasis-of-matter or other-matter paragraphs. If our opinions
on the financial statements or the single audit compliance opinions are other than
unmodified, we will discuss the reasons with you in advance. If, for any reason, we are
unable to complete the audit or are unable to form or have not formed opinions, we may
decline to express opinions or to issue a report as a result of this engagement.
')1 1 1 1'79 1 Page 54 of 182
City of Oak Park Heights
Contract for Auditing Services
Page 4
Management Responsibilities
Mana`,ement is responsible for the financial statements, schedule of expenditures of
federal awards,and all accompanying information as well as all representations contained
therein. Management is also responsible for identifying federal awards received and
understanding and complying with the compliance requirements, and for preparation of the
schedule of expenditures of federal awards in accordance with the requirements of OMB
Circular A-133. As part of the audit, we will assist with preparation of your financial
statements, schedule of expenditures of federal awards, and related notes. These nonaudit
services do not constitute an audit under Government Auditing Standards and such services
will not be conducted in accordance with Government Auditing Standards. You agree to
assume all management responsibilities relating to the financial statements, schedule of
expenditures of federal awards, related notes and other nonaudit services we provide. You
will be required to acknowledge in the written representation letter our assistance with
preparation of the financial statements and schedule of expenditures of federal awards and
that you have reviewed and approved the financial statements, schedule of expenditures of
federal awards, and related notes prior to their issuance and have accepted responsibility for
them. Further, you agree to oversee the nonaudit services by designating an individual,
preferably from senior management, who possesses suitable skill, knowledge, or experience;
evaluate the adequacy and results of the services; and accept responsibility for them.
Management is responsible for(a) establishing and maintaining effective internal
controls, including internal controls over compliance, and for evaluating and monitoring
ongoing activities, to help ensure that appropriate goals and objectives are met; (b) following
laws and regulations, (c) ensuring that there is reasonable assurance that government
programs are administered in compliance with compliance requirements; and (d) ensuring
that management is reliable and financial information is reliable and properly reported.
Management is also responsible for implementing systems designed to achieve compliance
with applicable laws, regulations, contracts, and grant agreements. You are also responsible
for the selection and application of accounting principles; for the preparation and fair
presentation of the financial statements in conformity with U.S. generally accepted
accounting principles; and for compliance with applicable laws and regulations and the
provisions of contracts and grant agreements.
Management is also responsible for making all financial records and related information
available to us and for the accuracy and completeness of that information. You are also
responsible for providing us with (1) access to all information of which you are aware that is
relevant to the preparation and fair presentation of the financial statements. (2) additional
information that we may request for the purpose of the audit, and (3) unrestricted access to
persons within the government from whom we determine it necessary to obtain audit
evidence.
Page 55 of 182
City of Oak Park Heights
Contract for Auditing Services
Page S
Your responsibilities also include identifying significant vendor relationships in which
the vendor has responsibility for program compliance and for the accuracy and completeness
of that information. Your responsibilities include adjusting the financial statements to
correct material misstatements and for confirming to us in the written representation letter
that the effects of any uncorrected misstatements aggregated by us during the current
engagement and pertaining to the latest period presented are immaterial, both individually
and in the aggregate, to the financial statements taken as a whole.
You are responsible for the design and implementation of programs and controls to
prevent and detect fraud, and for informing us about all known or suspected fraud affecting
the government involving (1) management, (2) employees who have significant roles in
internal control, and (3) others where the fraud or illegal acts could have a material effect on
the financial statements. Your responsibilities include informing us of your knowledge of
any allegations of fraud or suspected fraud affecting the government received in
communications from employees, former employees, grantors, regulators, or others. In
addition, you are responsible for identifying and ensuring that the entity complies with
applicable laws, regulations, contracts, agreements, and grants. Additionally, as required by
OMB Circular A-133, it is management's responsibility to follow up and take corrective
action on reported audit findings and to prepare a summary schedule of prior audit findings
and a corrective action plan.
You are responsible for preparation of the schedule of expenditures of federal awards in
conformity with OMB Circular A-133. You agree to include our report on the schedule of
expenditures of federal awards in any document that contains and indicates that we have
reported on the schedule of expenditures of federal awards. You also agree to make the
audited financial statements readily available to intended users of the schedule of
expenditures of federal awards no later than the date the schedule of expenditures of federal
awards is issued with our report thereon. Your responsibilities include acknowledging to us
in the written representation letter that (1) you are responsible for presentation of the
schedule of expenditures of federal awards in accordance with OMB Circular A-133; (2)that
you believe the schedule of expenditures of federal awards, including its form and content, is
fairly presented in accordance with OMB Circular A-133; (3) that the methods of
measurement or presentation have not changed from those used in the prior period (or, if they
have changed, the reasons for such changes); and (4) you have disclosed to us any significant
assumptions or interpretations underlying the measurement or presentation of the schedule of
expenditures of federal awards.
11 1 172 1 Page 56 of 182
City of Oak Park Heights
Contract for Auditing Services
Page 6
You are also responsible for the preparation of the other supplementary information,
which we have been engaged to report on, in conformity with U.S. generally accepted
accounting principles. You agree to include our report on the supplementary information in
any document that contains and indicates that we have reported on the supplementary
information. You also agree to make the audited financial statements readily available to
users of the supplementary information no later than the date the supplementary information
is issued with our report thereon. Your responsibilities include acknowledging to us in the
written representation letter that (1) you are responsible for presentation of the supplementary
information in accordance with GAAP; (2) that you believe the supplementary information,
including its form and content, is fairly presented in accordance with GAAP; (3) that the
methods of measurement or presentation have not changed from those used in the prior
period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to
us any significant assumptions or interpretations underlying the measurement or presentation
of the supplementary information.
Management is responsible for establishing and maintaining a process for tracking the
status of audit findings and recommendations. Management is also responsible for
identifying for us previous financial audits, attestation engagements, performance audits or
other studies related to the objectives discussed in the Audit Objectives section of this letter.
This responsibility includes relaying to us corrective actions taken to address significant
findings and recommendations resulting from those audits, attestation engagements,
performance audits, or studies. You are also responsible for providing management's views
on our current findings, conclusions, and recommendations, as well as your planned
corrective actions, for the report, and for the timing and format for providing that
information.
Audit Procedures — General
An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; therefore, our audit will involve judgment about the
number of transactions to be examined and the areas to be tested. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements. We will plan and perform the audit to obtain
reasonable rather than absolute assurance about whether the financial statements are free of
material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3)
misappropriation of assets, or(4) violations of laws or governmental regulations that are
attributable to the entity or to acts by management or employees acting on behalf of the
entity. Because the determination of abuse is subjective, Government Auditing Standards do
not expect auditors to provide reasonable assurance of detecting abuse.
'i I 17Q 1 Page 57 of 182
City of Oak Park Heights
Contract for Auditing Services
Page 7
Because of the inherent limitations of an audit, combined with the inherent limitations of
internal control, and because we will not perform a detailed examination of all transactions,
there is a risk that material misstatements or noncompliance may exist and not be detected by
us,even though the audit is properly planned and performed in accordance with U.S.
generally accepted auditing standards and Government Auditing Standards. In addition, an
audit is not designed to detect immaterial misstatements or violations of laws or
governmental regulations that do not have a direct and material effect on the financial
statements or major programs. However, we will inform the appropriate level of
management of any material errors, any fraudulent financial reporting or misappropriation of
assets that come to our attention. We will also inform the appropriate level of management
of any violations of laws or governmental regulations that come to our attention, unless
clearly inconsequential, and of any material abuse that comes to our attention. We include
such matters in the reports required for a Single Audit. Our responsibility as auditors is
limited to the period covered by our audit and does not extend to later periods for which we
are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions
recorded in the accounts, and may include tests of the physical existence of inventories, and
direct confirmation of receivables and certain other assets and liabilities by correspondence
with selected individuals, funding sources, creditors, and financial institutions. We will
request written representations from your attorneys as part of the engagement, and they may
bill you for responding to this inquiry. At the conclusion of our audit, we will require certain
written representations from you about your responsibilities for the financial statements;
schedule of expenditures of federal awards; federal award programs; compliance with laws,
regulations, contracts and grant agreements; and other responsibilities required by generally
accepted auditing standards.
Audit Procedures — Internal Controls
Our audit x ill include obtaining an understanding of the entity and its environment,
including internal control, sufficient to assess the risks of material misstatement of the
financial statements and to design the nature, timing, and extent of further audit procedures.
Tests of controls may be performed to test the effectiveness of certain controls that we
consider that we consider relevant to preventing and detecting errors and fraud that are
material to the financial statements and to preventing and detecting misstatements resulting
from illegal acts and other noncompliance matters that have a direct and material effect on
the financial statements. Our tests, if performed, will be less in scope than would be
necessary to render an opinion on internal control and, accordingly, no opinion will be
expressed in our report on internal control issued pursuant to Government Auditing
Standards.
Page 58 of 182
City of Oak Park Heights
Contract for Auditing Services
Page S
As required by OMB Circular A-133, we will perform tests of controls over compliance
to evaluate the effectiveness of the design and operation of controls that we consider relevant
to preventing or detecting material noncompliance with compliance requirements applicable
to each major federal award program. However, our tests will be less in scope than would be
necessary to render an opinion on those controls and, accordingly, no opinion will be
expressed in our report on internal control issued pursuant to OMB Circular A-133.
An audit is not designed to provide assurance on internal control or to identify significant
deficiencies or material weaknesses. However, during the audit, we will communicate to
management and those charged with governance internal control related matters that are
required to be communicated under AICPA professional standards, Government Auditing
Standards. and OMB Circular A-133.
Audit Procedures — Compliance
As part of obtaining reasonable assurance about whether the financial statements are free
of material misstatement, we will perform tests of the City's compliance with the provisions
of applicable laws, regulations, contracts, agreements, including grant agreements. However,
the objective of those procedures will not be to provide an opinion on overall compliance and
we will not express such an opinion in our report on compliance issued pursuant to
Government Auditing Standards.
OMB Circular A-133 requires that we also plan and perform the audit to obtain
reasonable assurance about whether the auditee has complied with applicable laws and
regulations and the provisions of contracts and grant agreements applicable to major
programs. Our procedures will consist of tests of transactions and other applicable
procedures described in the OMB Circular A-133 Compliance Supplement for the types of
compliance requirements that could have a direct and material effect on each of the City's
major programs. The purpose of these procedures will be to express an opinion on the City's
compliance with requirements applicable to each of its major programs in our report on
compliance issued pursuant to OMB Circular A-133.
The Minnesota Legal Compliance Audit Guide for Local Government requires that we
test whether the auditee has complied with certain provisions of Minnesota Statutes. Our
audit will include such test of the accounting records and other procedures as we consider
necessary in the circumstances.
„� 7Q Page 59 of 182
City of Oak Park Heights
Contract for Auditing Services
Page 9
Engagement Administration, Fees and Other
We may from time to time, and depending on the circumstances, use third-party service
providers in serving your account. w'e may share confidential information about you with
these service providers, but remain committed to maintaining the confidentiality and security
of your information. Accordingly, we maintain internal policies, procedures, and safeguards
to protect the confidentiality of your personal information. In addition, we will secure
confidentiality agreements with all service providers to maintain the confidentiality of your
information and we will take reasonable precautions to determine that they have appropriate
procedures in place to prevent the unauthorized release of your confidential information to
others. In the event that we are unable to secure an appropriate confidentiality agreement,
you will be asked to provide your consent prior to the sharing of your confidential
information with the third-party service provider. Furthermore, we will remain responsible
for the work provided by any such third-party service providers.
We understand that your employees will prepare all cash, accounts receivable, or other
confirmations we request and will locate any documents selected by us for testing.
At the conclusion of the engagement, we will complete the appropriate sections of the
Data Collection form that summarizes our audit findings. It is management's responsibility
to submit the reporting package (including financial statements, schedule of expenditures of
federal awards, summary schedule of prior audit findings, auditors' reports, and corrective
action plan) along with the Data Collection Form to the federal audit clearinghouse. We will
coordinate with you the electronic submission and certification. If applicable, we will
provide copies of our report for you to include with the reporting package you will submit to
pass-through entities. The Data Collection Form and the reporting package must be
submitted within the earlier of 30 days after receipt of the auditors' reports or nine months
after the end of the audit period, unless a longer period is agreed to in advance by the
cognizant or oversight agency for audits.
The audit documentation for this engagement is the property of Redpath and Company,
Ltd. and constitutes confidential information. However, subject to applicable laws and
regulations and documentation and appropriate individuals will be made available upon
request in a timely manner to a federal agency providing direct or indirect funding, or the
U.S. Government Accountability Office for purposes of a quality review of the audit, to
resolve audit findings, or to carry out oversight responsibilities. We will notify you of any
such request. If requested, access to such audit documentation will be provided under the
supervision of Redpath and Company, Ltd. personnel. Furthermore, upon request, we may
provide copies of selected audit documentation to the aforementioned parties. These parties
may intend, or decide, to distribute the copies or information contained therein to others,
including other governmental agencies.
�1 1 1 1 7R I Page 60 of 182
City of Oak Park Heights
Contract for Auditing Services
Page 10
The audit documentation will be retained for a minimum of five years after the report
release date or for any additional period requested by the federal agency. If we are aware
that a federal awarding agency or auditee is contesting a finding, we will contact the
party(ies) contesting the audit finding for guidance prior to destroying the audit
documentation.
David J. Mol, CPA is the engagement partner and is responsible for supervising the
engagement and signing the report.
Our standard hourly rates vary according to the degree of responsibility involved and the
experience level of the personnel assigned to your audit. Our invoices for these fees will be
rendered each month as work progresses and are payable on presentation. Unless additional
work is requested, or circumstances require additional work, we estimate the basic audit fees
will be $36,900.
The above fee is based on the anticipated scope of services. An increase in the scope of
service will necessitate an addendum (change order) to this agreement. Examples of items
that may result in an increase in the scope of service include additional audit procedures
resulting from certain accounting issues or events, significant change in the level of
activity/number of transactions, if there is an indication of misappropriation or misuse of
public funds, or difficulties encountered due to lack of accounting records, incomplete
records, inaccurate records or turnover in the City's staff.
Government Auditing Standards requires that we provide you with a copy of our most
recent external peer review report and any letter of comment, and any subsequent peer
review reports or letters of comment received during the period of contract. Our 2013 peer
review report accompanies this letter as Appendix A. We are pleased to report that we did
not receive a letter of comment.
We appreciate the opportunity to be of service to City of Oak Park Heights, Minnesota
and believe this letter accurately summarizes the significant terms of our engagement. If you
have any questions, please let us know. If you agree with the terms of our engagement as
described in this letter, please sign the enclosed copy and return it to us.
Very truly yours,
REDPATH AND COMPANY, LTD.
David J. Mol, CPA
I I 1 1'N y Page 61 of 182
City of Oak Park Heights
Contract for Auditing Services
Page 11
Response
This letter correctly sets forth the understanding of the City of Oak Park Heights,
Minnesota:
By: By:
Title: Title:
Date: Date:
Nonaudit Services
The employ ce(s) assigned to oversee the nonaudit services is as follows:
❑ Finance Director
Assistant Finance Director
❑ Other employee (name and title)
11 11 1,8 f Page 62 of 182
Appendix A
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September 26,2012
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Page 63 of 22
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Page 64 of 182
P,. -
Oak Park Heights 11
Request for Council Action
Meeting Date October 14, 2014
Agenda Item Title Hardrives Inc. 5th Payment for 2014 Street Reconstruction
Agenda Placement Consent
Originating Department/Requestor Finance T Betty Caruso Finance Director
Requester's Signature
Action Requested Approve 5th payment request to Hardrives Inc. for the 2014 Street
Reconstruction
Background/Justification (Please indicate any previous action, financial implications
including budget information and recommendations).
Total Request is for $662,866.36 net of a 6% Retainage.
This request has been reduced by $69,000 of liquidated damages of$1,600/day for 46 days .
Billing is for approximately 72.5% of the project.
See attached and pay request.
Page 65 of 182
Owner: City of Oak Park Heights,P.O.Box 2007,Stillwater,MN 55082 Date: October 10,2014
Stantec For Period: 9/3/2014 to 9/27/2014 Request No: 5
Contractor: Har&ves,Inc., 14475 Quiram Dr.,Rogers,MN 55374
CONTRACTOR'S REQUEST FOR PAYMENT
2014 STREET RECONSTRUCTION
STANTEC PROJECT NO. 193801994
SUMMARY
1 Original Contract Amount $ 3,387,731.66
2 Change Order-Addition $ 0.00
3 Change Order- Deduction $ 0.00
4 Revised Contract Amount $ 3,387,731.66
5 Value Completed to Date $ 2,438,080.73
6 Material on Hand $ 19,005.17
7 Amount Earned $ 2,457,085.90
8 Less Retainage 5% $ 122,854.29
9 Subtotal $ 2,334,231.60
10 Less Amount Paid Previously $ 1,702,366.24
11 Liquidated damages - @$1500 per day for 46 days $ 69,000.00
12 AMOUNT DUE THIS REQUEST FOR PAYMENT NO. 5 $ 562,865.36
Recommended for Approval by:
STANTEC
9011WOOVA-444-001
Approved by Contractor: Approved by Owner:
HARDRIVES, INC. CITY OF OAK PARK HEIGHTS
Specified Contract Completion Date: Date:
Page 66 of 182
193801994RE05-bsm
No. Item Contract Unit Current
Unit Quantity Quantity Amounl
PART 1 -STREETS tY Price Quantity to Date
I MOBILIZATION to Date
2 TRAFFIC CONTROL LS 1 134263.29
3 TEMPORARY MAIL LS 1 5882.43 0.5 $67,131,65
4 INLET PROTECTION LS 1 4812.90 0.5 $2,941.22
5 SILT FENCE,TYPE MACHINE SLICED EA 34 69,52 0.5 $2.406.45
6 REMOVE LANDSCAPING LF 1400 2.04 4 $278.08 7 REMOVE SIGN LS 1 5347.67 505 $1,030.20
8 REMOVE STREET SIGNS EA 50 32.09 $0.00
9 SALVAGE AND REINSTALL SIGN EA 21 53.48 $0.00
10 REMOVE TREE EA 55 64.17 $0.00
11 REMOVE RETAINING WALL EA 45 320.86 $0'00
12 REMOVE BOLLARDS LS 1 3208.60 86 $27,593.96
13 CLEARING AND GRUBBING,INCLUDING LARGE STUMP LS 1 1497.35 1 $0.00
REMOVAL 1 $1,497.35
14 REMOVE BITUMINOUS PAVEMENT LS 1 6951.97
15 SAWING BITUMINOUS PAVEMENT-STREET SY 41300 1 $6,951.97 4529
16 REMOVE CONCRETE CURB&GUTTER 1.39 1 .16 40157 7 $55 819 20
LF 720 2.26
17 REMOVE BITUMINOUS DRIVEWAY PAVEMENT LF 8480 88 $198.88.87
1 6240 7248 $13,553.76
18 REMOVE CONCRETE DRIVEWAY PAVEMENT SY 2100 3.21
19 REMOVE CONCRETE WALK SF 1412.28 $4,533.42
480 3.21 369.25
20 REMOVE GRAVEL DRIVEWAY SF 1000 0.53 $1,185.29
21 COMMON EXCAVATION (P) SY 260 1,07 24.67 $1308
22 SUBGRADE EXCAVATION (CV) CY 22270 98'55 $105.45
7.78 8349 14849 $115,525.22
23 AGGREGATE BASE,CLASS 5 TN 4800 7.78 1299.7 1299.7
24 SELECT GRANULAR BORROW(MODIFIED) TN 9500 7.91 6255,69 12784 89 $10,i 1 1.67
25 4"PVC PERFORATED DRAIN TILE,WITH COARSE FILTER TN 9500 6.95 $101,128.48
2363'06 $16.423.27
AGGREGATE AND FILTER FABRIC
26 BITUMINOUS MATERIAL FOR TACK COAT A IF
2500 4.76 1140 1$20
27 TYPE SP 12.5 NON-WEARING COURSE MIXTURE 2,B GAL 1775 2 52 $8,163.20
( )
28 TYPE SP 12.5 WEARING COURSE MIXTURE (2,C) � 3220 62.00 940.15 2090.53 $1,134.00
29 TYPE 5P 9.5 BITUMINOUS MIXTURE FOR DRIVEWAYS (2,B) TN 3220 71.00 $129.612.$6
365 745.00 596.2 $42,330.20
30 TYPE SP 9.5 BITUMINOUS MIXTURE FOR TRAIL (2,B)
31 6"CONCRETE DRIVEWAY TN 289.24 $41,934.80
60 75.00
32 6618 CONCRETE CURB AND GUTTER SF 3050 5.29 $0.00
33 SURMOUNTABLE CONCRETE CURB AND GUTTER LF 1480 390.93 $2,068.02
9.89 1443
34 CONCRETE WALK LF 23980 9.14 8160.91 16050.91 $14271 27
35 CONCRETE PEDESTRIAN RAMP SF 2000 4.76 $146,705.32
36 TRUNCATED DOME SURFACE SF 200 5.29 24.67 $117,43
37 SEEDING,INCLUDING SEED, FERTILIZER, AND WOOD SF 60 32.09 $0.00
FIBER BLANKET $0.00
38 HYDROSEED WITH MULCH SY 900 2.37 660 1494.51
39 SELECT TOPSOIL BORROW SY 28600 1.08 $3,541.99
40 SIGN PANELS CY 1570 8164.97 $8,818.17
19.04
41 STREET NAME BLADE SIGNS SF 58 37.43 88 7536.7 $29,247.34
42 12"SOLID WHITE STOP BAR EA 21 336.90 $0.00
43 STREET SWEEPER(WITH PICKUP BROOM) LF 215 6.42 $0.00
TOTAL PART 1 _STREETS HR 115 151.14 $0.00
25.25 $3,8 16,29
PART 2- WATERMAIN $860,694.46
44 TEMPORARY WATER SERVICE
45 REMOVE WATERMAIN LS 1 15508.24 0.25
46 ABANDON WATERMAIN LF 7150 5,88 1 $15,508.24
604 5143.5 $30,243.78
47 REMOVE WATER SERVICE LF
950 12.30 529 1750 $21,525.00
48 REMOVE HYDRANT LF 2425 2.67 1499.2
49 REMOVE VALVE AND BOX EA 14 213.9 1599'7 $4.271.20
1 2
50 ROCK EXCAVATION-WEATHERED EA 31 106.95 18 $3,850.38
51 ROCK EXCAVATION- HARD 60 106.95 CY 2 16 $1,711.20
52 SAND CUSHION CY 30 133.69 $0.00
53 IMPROVED PIPE FOUNDATION LF 700 2.67 Page 67 of 1810.00
LF 815 3.74 $0.00
193801994REQ5.ft, aa)
Contract Unit Current Quantity Amount
No. item Unit Quantity Price Quantity to Date to Date
54 CONNECT TO EXISTING WATERMAIN EA 11 962.58 3 9 $8,663.22
55 6"DIP WATERMAIN,CLASS 52 LF 6010 35.83 373 4797.3 $171,887.26
56 8"DIP WATERMAIN,CLASS 52 LF 2840 42.78 269 2691 $115,120.98
57 DIRECTIONAL DRILL 6"PVC,C900 WATERMAIN,
INCLUDING DUAL TRACER WIRE LF 620 55.62 1521.97 $84,651.97
58 6"GATE VALVE AND BOX EA 38 1229.96 4 39 $47,968.44
59 8"GATE VALVE AND BOX EA 9 1657.78 1 9 $14,920.02
60 WATERMAIN OFFSET-6" EA 4 3369.03 $0.00
61 WATERMAIN OFFSET-8" EA 3 3957.27 $0.00
62 HYDRANT EA 21 3689.89 1 21 $77,487.69
63 ADJUST HYDRANT EA 5 732.63 $0.00
64 DUCTILE IRON FITTINGS LB 4160 7.33 363 3433 $25,163.89
65 INSULATION-4"THICK SY 240 45.46 9.77 18.67 $848.74
66 1"CORPORATION STOP EA 99 197.86 52 96 $18,994,56
67 1"CURB STOP AND BOX EA 99 315.51 52 96 $30,288.96
68 1"TYPE"K"COPPER PIPE LF 2750 26.36 1312.2 2410.2 $63,532.87
69 2"CORPORATION STOP EA 2 481.29 4 4 $1,925.16
70 2"CURB STOP AND BOX EA 2 641.72 4 4 $2,566.88
71 2"TYPE"K"COPPER PIPE LF 130 35.83 187 187 $6,700,21
72 CONNECT TO EXISTING WATER SERVICE EA 92 267.38 48 92 $24,598.96
73 DIRECTIONAL DRILL 1"COPPER WATER SERVICE LF 500 49.20 278 602 $29,618.40
74 WATER SERVICE CONNECTION INSIDE HOME EA 8 1604.30 5 6 $9,625.80
75 REPLACE WATER METER EA 8 855.63 5 6 $5,133.78
TOTAL PART 2-WATERMAIN $816,807.59
PART 3-SANITARY SEWER
76 REMOVE SANITARY SEWER CASTING AND RINGS EA 50 101.61 20 48 $4,877,28
77 REMOVE SANITARY SEWER PIPE LF 380 5.35 202 381,78 $2,042.52
78 ABANDON SANITARY MANHOLE EA 3 625.68 1 1 $625.68
79 ABANDON SANITARY SEWER PIPE LF 200 13.37 113 113 $1,510.81
80 BULKHEAD SANITARY SEWER PIPE EA 1 481.29 1 1 $481.29
81 REMOVE SANITARY MANHOLE EA 22 588.24 9 20 $11,764.80
82 8"PVC SANITARY SEWER PIPE-SDR 26 LF 215 32.35 124 21533 $6,965.93
83 10"PVC SANITARY SEWER PIPE-SDR 26 LF 190 35.46 146 164.65 $5,838.49
84 CONNECT TO EXISTING SANITARY SEWER PIPE EA 39 855.63 13 31 $26,524.53
85 8"X4"PVC WYE EA 9 278.08 4 8 $2,224.64
86 4"PVC SANITARY SEWER SERVICE PIPE LF 310 25.88 82 164 $4,244.32
87 CONNECT TO EXISTING SEWER SERVICE EA 9 336.90 4 8 $2,695.20
88 IMPROVED PIPE FOUNDATION LF 70 4.28 $0.00
89 4' DIAMETER SANITARY SEWER MH EA 23 4545.52 9.51 19.51 $88,683.10
90 4'DIAMETER SANITARY SEWER MH WITH OUTSIDE DROP EA 1 10240.78 1 $10,240.78
91 SANITARY MANHOLE OVERDEPTH LF 77 294.12 12.45 12.45 $3,661.79
92 FURNISH &INSTALL NEW SANITARY MH CASTING AND
RINGS EA 26 641.72 4 $2,566.88
93 SEWER REHABILITATION WITH CIPP,8" LF 1580 28.23 $0.00
94 SEWER REHABILITATION WITH CIPP,9" LF 1574 26.60 $0.00
TOTAL PART 3-SANITARY SEWER $174,948.04
PART 4-STORM SEWER
95 REMOVE STORM SEWER CASTING AND RINGS EA 41 101.61 13 36 $3,657.96
96 REMOVE STORM SEWER MH OR CATCH BASIN EA 29 374.34 15 25 $9,358.50
97 REMOVE STORM SEWER PIPE LF 647 12.30 143 554.5 $6,820.35
98 12"RCP STORM SEWER,CL 5 LF 800 26.74 286.5 755 $20,188.70
99 15"RCP STORM SEWER,CL 5 LF 1065 28.34 302 840 $23,805.60
100 18"RCP STORM SEWER,CL 5 LF 1590 31,82 799 2271.5 $72,279.13
101 21"RCP STORM SEWER,CL 4 LF 95 37.27 68 $2,534.36
102 24"RCP STORM SEWER,CL 4 LF 70 42.25 46 82 $3,464.50
103 4'DIAMETER STORM SEWER MH OR CBMH EA 44 1871.68 12 33 $61,765.44
104 S'DIAMETER STORM SEWER MH OR CBMH EA 2 2085.59 2 $4,171.18
105 6 DIAMETER STORM SEWER MH OR CBMH EA 2 2780.79 1 $2,780.79
Page 68 of 182
193801994R505.)d5tn
Contract Unit Current Quantity Amount
No. Item Unit Quantity Price Quantity to Date to Date
106 2'x3'CATCHBASIN EA 32 1764.73 9 131 $231,179.63
107 18"RCP FLARED END SECTION EA 1 561.51 0.98 $550.28
108 24"RCP FLARED END SECTION EA 1 802.15 1 $802.15
109 FURNISH &INSTALL NEW STORM SEWER CASTINGS-MH EA 6 727.28 1 $727,28
110 FURNISH &INSTALL NEW STORM SEWER CASTINGS-CB EA 6 828.89 $0.00
111 CONNECT TO EXISTING STORM SEWER PIPE EA 18 411.77 10 12 $4,941.24
112 CONNECT TO EXISTING STORM STRUCTURE EA 7 614.98 4 10 $6,149.80
113 CONNECT TO STRUCTURE (DRAINTILE) EA 92 315,51 57 92 $29,026.92
114 DRAINAGE SWALE GRADING LS 2 1283.44 2 $2,566,88
115 CLASS III RIP RAP CY 30 77.01 15.56 15.56 $1,198.28
TOTAL PART 4-STORM SEWER $487,968.97
PART 5 - STAGECOACH TRAIL NORTH -WATERMAIN IMPROVEMENTS
116 TEMPORARY WATER SERVICE-STAGECOACH TRAIL
WATERMAIN IMPROVEMENTS LS 1 1336.92 1 $1,3302
117 TRAFFIC CONTROL-STAGECOACH TRAIL WATERMAIN
IMPROVEMENTS LS 1 3101.65 0.5 $1,550.83
118 REMOVE BITUMINOUS PAVEMENT SY 2000 1.39 1719 $2,389.41
119 SALVAGE AND REINSTALL AGGREGATE BASE SY 2000 1.39 1719 $2,389.41
120 AGGREGATE BASE,CLASS 5 TN 250 8.98 574.31 $5,157.30
121 REMOVE WATERMAIN LF 1025 5.88 497 $2,922.36
122 ABANDON WATERMAIN LF 930 12.46 930 1180 $14,702.80
123 REMOVE WATER SERVICE LF 200 2.67 $0.00
124 REMOVE HYDRANT EA 4 213,91 $0•()0
125 ABANDON HYDRANT EA 2 213.91 2 3 $641.73
126 REMOVE VALVE AND BOX EA 7 106.95 2 $213.90
127 ROCK EXCAVATION-WEATHERED CY 20 106.95 $0.00
128 ROCK EXCAVATION- HARD CY 20 133.69 $0.00
129 SAND CUSHION LF 200 2.67 $0.00
130 IMPROVED PIPE FOUNDATION LF 40 3.74 $0.00
131 CONNECT TO EXISTING WATERMAIN EA 2 962.58 2 $1,925.16
132 6"DIP WATERMAIN,CLASS 52 LF 330 35.83 109.4 $3,919.80
133 8"DIP WATERMAIN,CLASS 52 LF 720 42.78 541 $23,143.98
134 6"GATE VALVE AND BOX EA 4 1229.96 2 $2,459.92
135 8"GATE VALVE AND BOX EA 1 1657.78 1 $1,657.78
136 HYDRANT EA 2 3689.89 1 $3,689.89
137 ADJUST HYDRANT EA 1 732.63 $0.()0
138 DUCTILE IRON FITTINGS LB 500 7.33 379 $2,778.07
139 INSULATION-4"THICK SY 0 50.00 11 $550.00
140 1"CORPORATION STOP EA 5 197.86 5 $989.30
141 1"CURB STOP AND BOX EA 5 315.51 5 $1,577.55
142 1"TYPE"K"COPPER PIPE LF 225 26.47 7 $185.29
143 CONNECT TO EXISTING WATER SERVICE EA 5 267.38 5 $1,336.90
144 SEWER REHABILITATION WITH CIPP,9" LF 400 26.60 $0.00
TOTAL PART 5-STAGECOACH TRAIL NORTH- $75,518.30
WATERMAIN IMPROVEMENTS
ALTERNATE 1 -VALLEY VIEW PARK ENTRANCE ROAD
145 MOBIL17ATION LS 1 3000.00 $0.00
146 TRAFFIC CONTROL LS 1 534.77 $0.00
147 REMOVE STORM SEWER LF 160 12.30 186 $2,287.80
148 RECLAIM BITUMINOUS PAVEMENT SY 4801 1.18 $0.00
149 SAWING BITUMINOUS PAVEMENT-STREET LF 115 2.66 $0.00
150 AGGREGATE BASE,CLASS 5 TN 650 8.56 $0.00
151 BITUMINOUS MATERIAL FOR TACK COAT GAL 275 2.25 $0.00
152 TYPE SP 12.5 NON-WEARING COURSE MIXTURE (2,B) TN 410 61.00 $0.00
153 TYPE SP 12.5 WEARING COURSE MIXTURE(2,C) TN 410 71.00 woo
154 15"RCP STORM SEWER,CL 5 LF 70 28.34 64 $1,813.76
155 18"RCP STORM SEWER,CL 5 LF 30 31,82 40 $1,272.80
156 21"RCP STORM SEWER,CL 4 LF 60 37.27 54 $2,012.58
Page 69 of 182
193801994RE05ASm
Contract Unit Current Quantity Amount
No. Item Unit Quantity Price Quantity to Date to Date
157 15"RCP FLARED END SECTION EA 2 550.81 2 $1,101.62
158 18"RCP FLARED END SECTION EA 2 561.51 1 $561.51
159 21"RCP FLARED END SECTION EA 2 614.98 2 $1,229.96
160 SEEDING, INCLUDING SEED, FERTILIZER,AND WOOD
FIBER BLANKET SY 2500 1,52 $0.00
161 SELECT TOPSOIL BORROW CY 300 19.04 $0.00
162 SIGN PANELS SF 13 37.43 $0.00
163 12"SOLID WHITE STOP BAR LF 25 16.04 $0.00
164 STREET SWEEPER (WITH PICKUP BROOM) HR 5 151.14 $0.00
TOTAL ALTERNATE 1 -VALLEY VIEW PARK ENTRANCE ROAD $P0,280.03
ALTERNATE 2 - STAGECOACH TRAIL NORTH TO PERKINS
AVENUE NORTH -WATERMAIN IMPROVEMENTS
165 MOBILIZATION LS 1 2540.00 0.5 $1,270.00
166 TRAFFIC CONTROL LS 1 534.77 0.5 $267.39
167 REMOVE TREE EA 3 320.86 2 $641.72
168 REMOVE WATERMAIN LF 250 5.88 196.5 $1,155.42
169 IMPROVED PIPE FOUNDATION LF 25 4.28 $0.00
170 6"DIP WATERMAIN,CLASS 52 LF 250 35.83 196.5 $7,040.60
171 DUCTILE IRON FITTINGS LB 200 7.33 96 $703.68
172 PATCH GRAVEL ACCESS/DRIVEWAY SY 315 3.74 $0.00
173 SEEDING, INCLUDING SEED, FERTILIZER,AND WOOD
FIBER BLANKET SY 800 2.11 $0.00
174 HYDROSEED WITH MULCH SY 800 1.44 222.2 $319.97
175 SELECT TOPSOIL BORROW CY 150 19.04 24,4 $464.58
TOTAL ALTERNATE 2-STAGECOACH TRAIL NORTH TO PERKINS $11,863.34
AVENEU NORTH -WATERMAIN IMPROVEMENTS
TOTAL PART 1 -STREETS $860,694.46
TOTAL PART 2-WATERMAIN $816,807.59
TOTAL PART 3-SANITARY SEWER $174,948.04
TOTAL PART 4-STORM SEWER $487,968.97
TOTAL PART 5-STAGECOACH TRAIL NORTH-WATERMAIN IMPROVEMENTS $75,518.30
TOTAL ALTERNATE 1 -VALLEY VIEW PARK ENTRANCE ROAD $10,280.03
TOTAL ALTERNATE 2-STAGECOACH TRAIL NORTH TO PERKINS AVENUE NORTH- $11,863.34
WATERMAIN IMPROVEMENTS
TOTAL WORK COMPLETED TO DATE $2,438,080.73
Page 70 of 182
193801994 RE 05.x1sm
PROJECT PAYMENT STATUS
OWNER CITY OF OAK PARK HEIGHTS
STANTEC PROJECT NO. 193801994
CONTRACTOR HARDRIVES, INC.
CHANGE ORDERS
No. Date Description Amount
Total Change Orders
PAYMENT SUMMARY
No. From To Payment Retainage Completed
1 05/01/2014 05/30/2014 $346,667.81 $18,245.67 $364,913.49
2 06/03/2014 06/27/2014 $72,200.48 $22,045.70 $440,913.99
3 06/28/2014 08/19/2014 $547,109.46 $50,840.93 $1,016,818.69
4 08/20/2014 09/02/2014 $736,388.49 $89,598.22 $1,791,964.47
5 j 09/03/2014 09/27/2014 $562,865.36 $122,854.29 $2,457,085.90
Total Payment to Date $2,265,231.60 Original Contract $3,387,731.66
Retainage Pay No. 5 $122,854.29 Change Orders
Liquidated Damages $69,000.00
Total Amount Earned $2,457,085.90 Revised Contract $3,387,731.66
Material on Hand $19,005.17
Page 71 of 182
193801994REQ5.x1sm
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Page 72 of 182
Oak Park Heights 12
Request for Council Action
Meeting Date October 10,2014
Time Required: 10 Minutes
Agenda Item Title: Public Hearing-TIF Area 1-2
Agenda Placement Public Hearings
Originating Department/Reque r E ' son. Cfty Administrator
Requester's Signature
Action Requested See Belo
Background/Justification(P ase indicate if any previous action has been taken or if other public
bodies have advised):
Please see the attached memo
Page 73 of 182
City of Oak Park Heights
14168 Oak Park Blvd. N•Box 2007.Oak Park Heights,MN 55082•Phone(651)439-4439•Fax(651)439-0574
10-10-14
MEMO
TO: City Council Members
FROM: Eric Johnson,City Administrator
RE: TIF 1-2—Public Hearing
The City Council is required to hold a public hearing regarding the proposed TIF District 1-2.The overall plan is attached.
The City Council should open the public hearing,take any commentary(written or veftl in to the record)and then close the
public hearing. NO action is required on 10!14114.The City Council is anticipated to be asked to take specfic action on
10/28114 once the Planning Commission on 10/16114 similarly reviews the plan for compliance with the City's
Comprehensive Plan.
As follows is a short summary of the proposal:
The City is pursuing the establishment of a Tax Increment Financing District (1-2) Renewal Redevelopment to facilitate the
recovery of costs invested into certain lands, improvements and dean-up
costs necessary to foster the redevelopment of the area and to assist the
State and Washington County in frontage road realignment 1 t
- - - -- -. Oje:.
The Redevelopment District is located north of STH 36 and west of Osgood j
Ave.See the maps y
The costs incurred or expected to be incurred in the near future are
$797,500.(See detailed list below)The targeted plan is that the tax revenues 1
generated from any new construction or redevelopment would be used to Ax l
finance the City for such expenses.The City would capture the total of City,
County and School District, tax revenues generated from the area to make
these reimbursements to the City.
The to ensure future flexibility enclosed TIF Plan does contemplate the _
possibility of additional expenses,consistent with TIF Law but would be mm
carefully considered at a later date and generally dependent on a given
proposal that may be presented.
Estimated Costs-As of 9181 f4 Totals k
6130Acqusition(westbury) $ 330,000.00 --a
:...r-
618QAcquSltlon $ 160,000100
6180 Demolition&Restor. $ S5,000.00
Sieve Sanitary Line in Oren ave $ 50,000.00
Water Line-Oren Ave. $ 120,000.00 NTH 16
TIF/Abatement Creation Consultant-(Ehlers) $ 1Q000.D0 - -
Subtotal $ 725,000.00
City Admin /Legal/Planning(10%) $ 72,500.00
.18�11ML
Ada;
C 7e0 20) 4N 600 8 u
Total TIF/Abte.Expenses-Anticipated To Date $ 797,500.00
Enclosures:
1. Ehlers TIF District Overview
2. Copy of the Notice of Public Hearing.
3. Updated of Schedule of Events
4. Comments from Washington County dated 10.7-14. Page 74 of 182
S. TIF Plan 1-2
Tax Increment Financing District Overview
City of Oak Park Heights
Tax Increment Financing District No. 1-2
The following summary contains an overview of the basic elements of the Tax Increment Financing Plan
for Tax Increment Financing District No. 1-2. More detailed information on each of these topics can be
found in the complete Tax Increment Financing Plan.
Proposed action: > Establishment of Tax Increment Financing District No. 1-2 (District) and
the adoption of a Tax Increment Financing Plan(TIF Plan).
> Modification to the Development Program for Development District No. 1
includes the establishment of Tax Increment Financing District No. 1-2,
which represents a continuation of the goals and objectives set forth in the
Development Program for Development District No. 1.
Type of TIF District: A renewal and renovation district
Parcel Numbers: 33.030.20.43.0038 33.030.20.43.0040
33.030.20.43.0057 33.030.20.43.0059
33.030.20.43.0042 33.030.20.43.0039
33.030.20.43.0047 33.030.20.43.0056
Proposed The District is being created to facilitate the redevelopment along Osgood
Development: Avenue and 6e St. in the City. Please see Appendix A of the TIF Plan for a
more detailed project description.
Maximum duration: The duration of the District will be 15 years from the date of receipt of the
first increment(16 years of increment). The City elects to receive the first tax
increment in 2017. It is estimated that the District, including any
modifications of the TIF Plan for subsequent phases or other changes, would
terminate after December 31,2032,or when the TIF Plan is satisfied.
Estimated annual tax Up to$218,612
increment:
EHLERS
LEADERS IN PUBLIC FINANCE
Pnnp 71;nf 199
Authorized uses: The TIF Plan contains a budget that authorizes the maximum amount that
may be expended:
Land/Building Acquisition.................................................$1,200,000
Site Improvements/Preparation.............................................$200,000
Public Utilities.......................................................................$100,000
Other Qualifying Improvements...........................................$261,104
Administrative Costs(up to 10%).........................................M3,286
PROJECT COSTS TOTAL...............................................$2,044,390
Interest................................................................................. $808,470
PROJECT COSTS TOTAL............................................
See Subsection 2-10, on page 2-5 of the TIF Plan for the full budget
authorization.
Form of financing: The project is proposed to be financed by a pay-as-you-go note and/or
interfund loan.
Administrative fee: U to 10%of annual increment,if costs are justified.
Interfund Loan If the City wants to pay for administrative expenditures from a tax increment
Requirement: fund, it is recommended that a resolution authorizing a loan from another
fund be passed PRIOR to the issuance of the check._
4 Year Activity Rule After four years from the date of certification of the District one of the
(§469.176 Subd 6) following activities must have been commenced on each parcel in the District:
• Demolition
• Rehabilitation
• Renovation
• Other site preparation(not including utility services such as sewer and
water)
If the activity has not been started by approximately October 2018, no
additional tax increment may be taken from that parcel until the
commencement of a qualifying activity.
5 Year Rule Within 5 years of certification revenues derived from tax increments must be
(§469.1763 Subd 3) expended or obligated to be expended.
Any obligations in the District made after approximately October 2019, will
not be eligible for repayment from tax increments.
The reasons and facts supporting the findings for the adoption of the TIF Plan for the District,as required
pursuant to MSS, Section 469.175, Subd. 3, are included in Exhibit A of the City resolution.
Page 2
EHLERS
LEADERS IN PUBLIC FINANCE
Page 76 of 182
MAP OF DEVELOPMENT DISTRICT NO. I AND
TAX INCREMENT FINANCING DISTRICT NO. 1-2
--------------
Tax Increment Financing 1)15triet No. 1-2
Development Distilet No.1
City of Oak Park Heights
was1iington County.MN
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EHLERS
LEADERS IN PUBLIC FINANCE
Page 77 of 182
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Page 4
EHLERS
LEADERS IN PUBLIC FINANCE
Page 78 of 182
NOTICE OF PUBLIC HEARING
CITY OF OAK PARK HEIGHTS
WASHINGTON COUNTY
STATE OF NNNESOTA
NOTICE IS HEREBY GIVEN that the City Council of the City of Oak Park Heights,
Washington County, State of Minnesota, will hold a public °hearing on October 14, 2014, at
approximately 7:00 P.m. at the City Council Chambers in City Hall, 14168 Oak Park Rd, Oak Park
Heights, Minnesota, relating to the City of Oak Park Heights' (the "City") proposed adoption of a
Modification to the Development Program for Development District No. 1 (the "Development Program
Modification"),the proposed establishment of Tax Increment Financing District No. 1-2 (a renewal and
renovation tax increment financing district) within Development District No. 1, and the proposed
adoption of a Tax Increment Financing Plan (the "TIF Plan") therefor (collectively, the "Program and
Plan"), pursuant to Minnesota Statutes, Sections 469.124 to 469.133 and Sections 469.174 to 469.1794,
all inclusive, as amended. Copies of the Program and Plan are on file and available for public inspection
at the office of the City Administrator at City Hall.
The property to be included in Tax Increment Financing District No. 1-2 is located within
Development District No. i and the City of Oak Park Heights. A map of Development District No. I and
Tax Increment Financing District No. 1-2 therein is set forth below. Subject to certain limitations, tax
increment from Tax Increment Financing District No. 1-2 may be spent on eligible uses within the
boundaries of Development District No. 1.
[INSERT MAP of Development District No. 1,
and Tax Increment Financing District No. 1-2]
All interested persons may appear at the hearing and present their views orally or prior to the
meeting in writing.
BY ORDER OF THE CITY COUNCIL OF
THE CITY OF OAK PARK HEIGHTS,MINNESOTA
Isl
Eric Johnson,City Administrator
Page 79 of 182
SCHEDULE OF EVENTS
CITY OF OAK PARK HEIGHTS
WASHINGTON COUNTY,MMESOTA
FOR THE MODIFICATION OF
DEVELOPMENT DISTRICT NO. 1
AND THE ESTABLISHMENT OF
TAX INCREMENT FINANCING DISTRICT NO. 1-2
(a renewal and renovation district)
April 2014 City building official reviews buildings for substandard qualifications.
May 27,2014 Project information (property identification numbers and legal descriptions,
detailed project description, maps, but/for statement, list of sources and uses of
funds, and estimated fiscal impacts of the project public improvements and on
fire and police protection)for drafting necessary documentation sent to Ehlers&
Associates.
May 27,2014 Ehlers &Associates confirms with the City whether building permits have been
issued on the property to be included in TIF District.
August 13,2014 City Council calls for public hearing on the proposed modification of
Development District No. 1 and the proposed establishment of Tax Increment
Financing District No. 1-2.
City Council adopts a resolution finding parcels to be include in TIF 1-1 are
occupied by structurally substandard buildings.
August 25,2014 City building official provides report of redevelopment qualifications.
August 29,2014 Project information submitted to the County Board for review of County Road
Impacts(at least 45 days prior to public hearing). The County Board,by law,has
45 days to review the TIF Plan to determine if any county roads will be impacted
by the development.
September 12,2014 Fiscal/economic implications received by School Board Clerk and County
Auditor(at least 30 days prior to public hearing)_[Ehlers&Associates will fax&
mail on or before September 12, 2014.1
September 22,2014 Ehlers & Associates conducts internal review of Development Program and TIF
Plan.
October 1,2014 Date of publication of hearing notice and map for establishment of TIF District
(at least 10 days but not more than 30 days prior to hearing). [Stillwater Gazette
publication deadline: September 29, 2014. Ehlers & Associates will submit
notice, map, and instructions to the newspaper via email on or before September
29, 2014.]
EHLERS
a era ociera ..
Page 80 of 182
SCHEDULE OF EVENTS -PAGE 2
CITY OF OAK PARK HEIGHTS
WASHINGTON COUNTY,MINNESOTA
FOR THE MODIFICATION OF
DEVELOPMENT DISTRICT NO. 1
AND THE ESTABLISHMENT OF
TAX INCREMENT FINANCING DISTRICT NO. 1-2
(a renewal and renovation district)
October 14,2014 City Council holds a public hearing at 7:00 P.M.on the modification of Development
District No. i and the establishment of TIF District No. 1-2. [Ehlers &
Associates will send Council packet information to City via email by October 7,
2014.1
October 16,2014 Planning Commission meets at 7:00 PM and reviews Development Program.
October 28,2014 City considers the modification of Development District No. 1 and the
establishment of TIF District No. 1-2 and passes resolution approving the
Development Program modification and TIF Plan.
October 29,2014 City can issue building permits.
By June 30,2015 Ehlers & Associates files Development Program and TIF Plan with the MN
Department of Revenue and the Office of the State Auditor, and requests
certification of the TIF District with Washington County.
An action under subdivision 1,paragraph fa),contesting the validity of a determination by an authority under section 469.175,
subdivision 3,must be commenced within the later of
1 180 days after the municipaliWs approval under section 469.175,subdivision 3;or
2 90 days after the request for certification of the district is filed with the county auditor under section 469.177,
su divisionl.
to E.H LE.R S
Page 81 of 182
Washington Board of Commissioners
Fran Miron, District 4
10=
Ted Bearth, District 2
�
Gary Kriesel, District 3
Autumn Lehrke, Chair, District 4
Lisa Weik, District 5
October 7, 2014
Mr. Eric Johnson, Administrator
City of Oak Park Heights
PO Box 2007
Oak Park Heights, MN 55082
Re: City of Oak Park Heights Tax Increment Financing District#1-2
Dear Mr. Johnson:
Thank you for the opportunity to provide comments concerning the establishment of tax increment
financing (TIF) district#1-2 within the City of Oak Park Heights for a planned redevelopment of the
northwest corner of Hwy 36 and Osgood Avenue.
Washington County adopted an economic development strategic plan earlier in 2014. The plan
identifies the county's intent to support the economic development efforts of our cities and other
partners that help sustain a premier quality of life for our residents, expands the county tax base, and that
creates and sustains living wage jobs across all employment sectors.
Pursuant to Minnesota Statute 479.175, subdivision 2, and consistent with the county's economic
development strategic plan, Washington County submits the following comments:
1. The County Board supports the city's effort to redevelop the portion of the city included in this
tax increment financing district to increase the tax base.
2. The TIF district proposal has been reviewed by our Taxation Division staff and no administrative
issues were identified.
3. The TIF district proposal has been reviewed by our Public Works Department. The eastern
border of the TIF district follows Osgood Avenue, which is a county road. As has been
discussed, no development plan is available for review by the city or the county. Until a final
development plan is proposed by the owners of the property, it is not possible to determine if the
development would substantially increase the use of county roads requiring construction of
improvements to Osgood Avenue that are not currently planned for the roadway. Therefore,
pursuant to M.S. 469.175 sub. 1a, the county is notifying the city that if the new development
creates a need for roadway improvements to Osgood Avenue,the County would request those
costs be paid for with tax increment collected within the district. If the city needs an estimate of
potential costs to include in the adopted TIF plan,please let us know and we can provide our best
estimate. Any questions related to the issue of road costs should be directed to Wayne Sandberg,
County Engineer.
4. The Public Works Department also believes that as development plans are prepared, creating
internal street connections will be important to ensure safe and convenient access to and from the
Government Center•14949 62nd Street North• P.O.Box 6•Stillwater,MN 55082-0006
Telephone:651-430-6001 • Fax:651-430-6017•TTY:651-430-6246
www.co.washington.mn.us
Page 82 of 182
Washington County is an equal opportunity organization and employer
developments. An extension of existing Oren Avenue,North to intersect with 62"d Street will be
a vital connection as it provides a connection to Osgood Avenue at an existing signal controlled
intersection. We encourage the City to include this critical internal street connection in any
development plan.
We appreciate the opportunity to provide comments on the proposed district. We request that these
comments be incorporated into the record at the public hearing on October 14, 2014.
Sinz, bv
Kevin Corbid
Deputy County Administrator
Cc: Washington County Board of Commissioners
Eric Johnson, City Administrator, Oak Park Heights
Page 83 of 182
As of October 10, 2014
Draft for Public Hearing
Modification to the Development Program
for Development District No. 1
and the
Tax Increment Financing Plan
for the establishment of
Tax Increment Financing District No. 1-2
(a renewal and renovation district)
within
Development District No. 1
City of Oak Park Heights
Washington County
State of Minnesota
Public Hearing: October 28,2014
Adopted:
I
i
Prepared by: FREERS&ASSOCIATES, INC.
IJFAW 3060 Cent re Pointe Drive, Roseville,Minnesota 55113-1105
-697-8500 fax: 651-697-8555 www.ellers-inc cm E H L E R S 651
...
Page 84 of 182
Table of Contents
(for reference purposes only)
Section 1 Modification to the Development Program
for Development District No. 1 . . . . . . . . . . . . . . . . . . . . 1-1
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e _ . . . , , , . . . . . . . . . . . . . . . . . 1-1
Section 2 -Tax Increment Financing Plan
for Tax Increment Financing District No. 1-2 2-1
Subsection 2-1. Foreword . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . 2-1
Subsection 2-2. Statutory Authority . . . . . . . . . . . . . . . . . 2-1
Subsection 2-3. Statement of Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1
Subsection 2-4. Development Program Overview . . . . . , _ . . . . . . 2-1
Subsection 2-5. Description of Property in the District and Property To Be Acquired . 2-2
Subsection 2-6. Classification of the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-2
Subsection 2-7. Duration and First Year of Tax Increment of the District . . . . . . . . . 2-3
Subsection 2-8. Original Tax Capacity,Tax Rate and Estimated Captured Net Tax Capacity
Value/Increment and Notification of Prior Planned Improvements . . . . . . . . . . . . . 2-3
Subsection 2-9. Sources of Revenue/Bonds to be Issued . . . . . . . . . . . . . . . . . 2-4
Subsection 2-10. Uses of Funds . . . . . . . . . . . . . . . . . . . 2-5
Subsection 2-11. Fiscal Disparities Election . . . . . . . . . . . 2-6
Subsection 2-12. Business Subsidies . . . . . . . . . . . . . . . . . . . . . . . . . . . , , . . . . . . . . 2-6
Subsection 2-13. County Road Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-7
Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions . . . . . . . . . . . . . . . . . 2-8
Subsection 2-15. Supporting Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-9
Subsection 2-16. Definition of Tax Increment Revenues . . . . . . . . . . . . . . . . . . . . . . . 2-10
Subsection 2-17. Modifications to the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-10
Subsection 2-18. Administrative Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-11
Subsection 2-19. Limitation of Increment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-11
Subsection 2-20. Use of Tax Increment . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . , . - 2-12
Subsection 2-21. Excess Increments . . . . , , , . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-12
Subsection 2-22. Requirements for Agreements with the Developer . . . . . . . . . . . . . . 2-13
Subsection 2-23. Assessment Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-13
Subsection 2-24. Administration of the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-13
Subsection 2-25. Annual Disclosure Requirements . . . . . . . . . . . . . . . . . . . . . . . . 2-13
Subsection 2-26. Reasonable Expectations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-14
Subsection 2-27. Other Limitations on the Use of Tax Increment . . . . . . . . . . . . . . . . . 2-14
Subsection 2-28. Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-15
Appendix A
Project Description . . . . . . . . . . . . . . . . . . . . . . A-1
Appendix B
Map of Development District No. 1 and the District . . . . . . . . . . . . . . . . . . . . . . B-1
Appendix C
Description of Property to be Included in the District . . . . . . . . , . C-1
Appendix D
Estimated Cash Flow for the District . . . . . . . . . . . - 11 - 1 - - - . . . . . . . . . . . D-1
Page 85 of 182
Appendix F
Minnesota Business Assistance Form . . . . . . . . . . . . . . . . . . E-1
Appendix F
Renewal and Renovation Qualifications for the District F-1
Appendix G
Findings Including ButtFor Qualifications . . . . . . . . . . . G-1
Page 86 of 182
Section T -Modification to the Development Program
for Development District No. 1
Foreword
The following text represents a Modification to the Development Program for Development District No. 1.
This modification represents a continuation of the goals and objectives set forth in the Development Program
for Development District No. 1. Generally, the substantive changes include the establishment of Tax
Increment Financing District No. 1-2.
For further information, a review of the Development Program for Development District No. I is
recommended. It is available from the City Administrator at the City of Oak Park Heights. Other relevant
information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts
located within Development District No. 1.
City of Oak Park Heights Modification to the Development Program for Development District No.1 1-1
Page 87 of 182
Section 2- Tax Increment Financing Plan
for Tax Increment Financing District No. 1-2
Subsection 2-1. Foreword
The City of Oak Park Heights(the"City"),staff and consultants have prepared the following information to
expedite the establishment of Tax Increment Financing District No. 1-2 (the "District"), a renewal and
renovation tax increment financing district,located in Development District No. 1.
Subsection 2-2. Statutory Authority
Within the City, there exist areas where public involvement is necessary to cause development or
redevelopment to occur. To this end,the City has certain statutory powers pursuant to Minnesota Statutes
('MS.'), Sections 469.124 to 469.133, inclusive, as amended, and M.S., Sections 469.174 to 469.1794,
inclusive,as amended(the"Tax Increment Financing Act"or"TIF Act"),to assist in financing public costs
related to this project.
This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant
information is contained in the Modification to the Development Program for Development District No. 1.
Subsection 2-3. Statement of Objectives
The District currently consists of eight parcels of land and adjacent and internal rights-of-way. The District
is being created to facilitate the redevelopment along Osgood Avenue and 60'Street in the City. Please see
Appendix A for further District information. The City has not entered into an agreement or designated a
developer at the time of preparation of this TIF Plan,but development is likely to occur in the near term. This
TIF Plan is expected to achieve many of the objectives outlined in the Development Program for
Development District No. 1.
The activities contemplated in the Modification to the Development Program and the TIF Plan do not
preclude the undertaking of other qualified development or redevelopment activities. These activities are
anticipated to occur over the life of Development District No. 1 and the District.
Subsection 2-4. Development Program Overview
1. Property to be Acquired - The City currently owns two parcels of property within the
District,and the City's Economic Development Authority owns an additional parcel. The
remaining property located within the District may be acquired by the City and is further
described in this TIF Plan.
2. Relocation- Relocation services, to the extent required by law, are available pursuant to
M.S., Chapter 117 and other relevant state and federal laws.
3. Upon approval of a developer's plan relating to the project and completion of the necessary
legal requirements,the City may sell to a developer selected properties that it may acquire
within the District or may lease land or facilities to a developer.
4. The City may perform or provide for some or all necessary acquisition, construction,
relocation,demolition,and required utilities and public street work within the District.
City of Oak Park Heights Tax Increment Financing Plan for Tax Increment Financing District No.1-2 2-1
Page 88 of 182
Subsection 2-5. Description of Property in the District and Property To Be Acquired
The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the
parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix l3 for further information
on the location of the District.
The City may acquire any parcel within the District including interior and adjacent street rights of way. Any
properties identified for acquisition will be acquired by the City only in order to accomplish one or more of
the following:storm sewer improvements;provide land for needed public streets,utilities and facilities;carry
out land acquisition,site improvements,clearance and/or development to accomplish the uses and objectives
set forth in this plan. The City may acquire property by gift, dedication,condemnation or direct purchase
from willing sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken
only when there is assurance of funding to finance the acquisition and related costs.
Subsection 2-6. Classification of the District
The City, in determining the need to create a tax increment financing district in accordance with M.S.,
Sections 469.174 to 469.1794,as amended,inclusive,finds that the District,to be established,is a renewal
and renovation district pursuant to M.S.,Section 469.174, Subd. 10a. as defined below:
(a) "Renewal and renovation district"means a type of tax increment financing district consisting of a
project, or portions of a project, within which the City finds by resolution that:
(1) (i) parcels consisting of 70 percent of the area of the district are occupied by buildings,
streets, utilities,paved or gravel parking lots, or other similar structures;
(ii) 20 percent of the buildings are structurally substandard;and
(iii) 30 percent of the other buildings require substantial renovation or clearance
to remove existing conditions such as: inadequate street layout, incompatible uses
or land use relationships,overcrowding ofbuildings on the land,excessive dwelling
unitdensity,obsolete buildings not suitablefor improvement or conversion,orother
identified hazards to the health, safety, and general well-being of the community;
and
(2) the conditions described in clause(1)are reasonably distributed throughout the geographic
area of the district.
(b) Forpurposes ofdetermining whether a building is structurally substandard,whetherparcelsare
occupied by buildings,streets,utilities,paved orgravelparking lots,or othersimilar structures,
or whether noncontiguous areas qualiA the provisions of subdivision 10, paragraphs (b)
through (fl apply.
In meeting the statutory criteria the City relies on the following facts and findings:
• The District consists of eight parcels.
• An inventory shows that parcels consisting of more than 70 percent of the area in the District are
occupied by buildings, streets,utilities,paved or gravel parking lots,or other similar structures.
• An inspection of the buildings located within the District finds that more than 20 percent ofthe buildings
are structurally substandard as defined in the TIF Act. (See Appendix F).
• Observation of the remaining buildings located within the District finds that more than 30 percent of the
buildings require substantial renovation or clearance to remove existing conditions such as defined in the
TIF Act. (See Appendix F).
City of Oak Park Heights Tax Increment Financing Plan for Tax Increment Financing District No.1-2 2-2
Page 89 of 182
Observation of the remaining buildings located wttiun the Utstrlct tads that more than 30 percent of the
buildings require substantial renovation of clearance to remove existing conditions such as those defined in
the TIF Act.Of the remaining four buildings in the District,no including the buildings that are structurally
substandard,at least two buildings require such substantial renovation or clearance.An interior inspection
to determine this standard is not required under the TIF Act.
For example,the building located at 14738 60'h St.North,owned by Erickson Post Acquisition Inc.(PID No.
3303020430057)is a vacant gas station which has been underutilized or unused for some time.This parcel
is hampered by the close proximity of 60"St.North,which serves as a northern frontage road to Highway
36.A new frontage road layout has been proposed to the north of the parcel,which will free the land for a
redevelopment use once the vacant building and building apron are removed. Under the TIF Act,the City
considers the buildings on this parcel to be"obsolete buildings not suitable for improvement or conversion."
The building located at 6148 Osgood Avenue North, a single-family residence owned by Daniel and
Fancheska Wortman, is an example of an"incompatible use or land use relationship" within the district.
When the entirety of the District area is considered,it is ripe for a high-quality commercial development,
given its proximity to the busy Osgood Avenue and Highway 3 6 intersection.This property is currently zoned
as R-B,Residential/Business Transitional,but it is guided as Commercial under the City's Comprehensive
Plan.The entire District,as well as the block tot he immediate north,is guided in the same manner.Therefore,
a comprehensive redevelopment that takes in account all commercial uses is more appropriate for this
intersection,especially as it transitions away from the new St. Croix River Crossing.
Therefore,at least 50 percent(2 of 4)of the remaining buildings located within the District require substantial
renovation or clearance to remove existing conditions described in the TIF Act.The City further finds that
the characteristics of a renewal and renovation TIF District mentioned in this Subsection 2-6 are reasonably
distributed throughout the geographic area of the District.
Pursuant to M.S., Section 469.176, Subd. 7,the District does not contain any parcel or part of a parcel that
qualified under the provisions of M.S., Sections 273.111 or 273.112 or Chapter 473H for taxes payable in
any of the five calendar years before the filing of the request for certification of the District.
Subsection 2-7. Duration and First Year of Tax Increment of the District
Pursuant to M.S.,Section 469.175, Subd. 1, and Section 469.176, Subd. 1,the duration and first year of tax
increment of the District must be indicated within the TIF Plan. Pursuant to M.S.,Section 469.176,Subd 1 b.,
the duration of the District will be 15 years after receipt of the first increment by the City(a total of 16 years
of tax increment). The City elects to receive the first tax increment in 2017,which is no later than four years
following the year of approval of the District. Thus, it is estimated that the District, including any
modifications of the TIF Plan for subsequent phases or other changes,would terminate after 2032,or when
all objectives and activities of the TIF Plan is satisfied. The City reserves the right to decertify the District
prior to the legally required date.
Subsection 2-8. Original Tax Capacity,Tax Rate and Estimated Captured Net Tax Capacity
Value/increment and Notification of Prior Planned Improvements
Pursuant to M.S,Section 469.174,Subd. 7 and M.S.,Section 469.177,Subd.],the Original Net Tax Capacity
(ONTO)as certified for the District will be based on the market values placed on the property by the assessor
as of January 1,2014 for taxes payable 2015.
Pursuant to M.S.,Section 469.177,Subds. 1 and 2,the County Auditor shall certify in each year(beginning
in the payment year 2017)the amount by which the original value has increased or decreased as a result of:
City of Oak Park Heights Tax Increment Financing Plan for Tax Increment Financing District No,1-2 2-3
Page 90 of 182
1. Change in tax exempt status of property;
2. Reduction or enlargement of the geographic boundaries of the district;
3. Change due to adjustments,negotiated or court-ordered abatements;
4. Change in the use of the property and classification;
5. Change in state law governing class rates;or
6. Change in previously issued building permits.
In any year in which the current Net Tax Capacity(NTC)value of the District declines below the ONTC,no
value will be captured and no tax increment will be payable to the City.
The original local tax rate for the District will be the local tax rate for taxes payable 2015, assuming the
request for certification is made before June 30,2015. The ONTC and the Original Local Tax Rate for the
District appear in the table below.
Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated
Captured Net Tax Capacity(CTC)of the District,within Development District No. 1,upon completion of
the projects within the District, will annually approximate tax increment revenues as shown in the table
below. The City requests 100 percent ofthe available increase in tax capacity for repayment of its obligations
and current expenditures,beginning in the tax year payable 2017. The Project Tax Capacity(PTC)listed is
an estimate of values when the projects within the District are completed.
Project Estimated Tax Capacity upon Completion(PTC) $326,779
Original Estimated Net Tax Capacity(ONTC) $54,467
Fiscal Disparities Contribution $90,503
Estimated Captured Tax Capacity(CTC) $181,809
Original Local Tax Rate 1.2024 Pay 2014
Estimated Annual Tax Increment(CTC x Local Tax Rate) $218,612
Percent Retained by the City 100%
Tax capacity includes a 2%inflation factor for the duration of the District. The tax capacity included in this
chart is the estimated tax capacity of the District in year 15. The tax capacity of the District in year one is
estimated to be$139,250.
Pursuant to M.S., Section 469.177, Subd. 4, the City shall, after a due and diligent search,accompany its
request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S.,
Section 469.175,Subd. 4,with a listing of all properties within the District or area of enlargement for which
building permits have been issued during the eighteen(18)months immediately preceding approval of the
TIF Plan by the municipality pursuant to M.S.,Section 469.175,Subd.3. The County Auditor shall increase
the original net tax capacity of the District by the net tax capacity of improvements for which a building
permit was issued.
The City has reviewed the area to be included in the District and found no parcels for which building
permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the
City.
Subsection 2-9. Sources of Revenue/Bonds to be Issued
The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax
City of Oak Park Heights Tax Increment Financing Plan for Tax Increment Financing District No.1-2 2-4
Page 91 of 182
increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As
presently proposed,the projects within the District will be financed by a pay-as-you-go note and/or interfund
loan. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This
provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon
the determination that such action is in the best interest of the City.
The total estimated tax increment revenues for the District are shown in the table below:
SOURCES OF FUNDS TOTAL
Tax Increment $2,832,860
Interest $20,000
TOTAL $2,852,860
The City may issue bonds(as defined in the TIF Act)secured in whole or in part with tax increments from
the District in a maximum principal amount of$2,044,390. Such bonds may be in the form of pay-as-you-go
notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded
indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval.
Subsection 2-10. Uses of Funds
Currently under consideration for the District is a proposal to facilitate the redevelopment along Osgood
Avenue and 60'h Street in the City. The City has determined that it will be necessary to provide assistance
to the project(s) for certain District costs, as described. The City has studied the feasibility of the
development or redevelopment of property in and around the District. To facilitate the establishment and
development or redevelopment of the District,this TIF Plan authorizes the use of tax increment financing to
pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with
the District is outlined in the following table.
USES OF TAX INCREMENT FUNDS TOTAL
Land/Building Acquisition $1,200,000
Site Improvements/Preparation $200,000
Utilities $100,000
Other Qualifying Improvements $261,104
Administrative Costs(u1)to 10%1 $283,286
PROJECT COST TOTAL $2,044,390
Interest 1&11.47.0
PROJECT AND INTEREST COSTS TOTAL $2,852,860
The total project cost,including financing costs(interest)listed in the table above does not exceed the total
projected tax increments for the District as shown in Subsection 2-9.
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Estimated costs associated with the District are subject to change among categories without a modification
to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed,
without formal modification,the budget above pursuant to the applicable statutory requirements. Pursuant
to M.S.,Section 469.1763,Subd 2,no more than 25 percent of the tax increment paid by property within the
District will be spent on activities related to development or redevelopment outside of the District but within
the boundaries of Development District No. 1,(including administrative costs,which are considered to be
spent outside of the District)subject to the limitations as described in this TIF Plan.
Subsection 2-11. Fiscal Disparities Election
Pursuant to M.S., Section 469.177, Subd 3, the City may elect one of two methods to calculate fiscal
disparities. If the calculations pursuant to M.S,Section 469.177,Subd. 3, clause b,(within the District)are
followed,the following method of computation shall apply:
(1) The original net tax capacity shall be determined before the application of the fiscal disparity
provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal
disparity commercial-industrial net tax capacity increase between the original year and the
current year multiplied by the fiscal disparity ratio determined pursuant to M.S, Section
276A.06, subdivision 7 or MS, Section 473F.08, subdivision 6 Where the original net tax
capacity is equal to or greater than the current net tax capacity,there is no captured tax capacity
and no tax increment determination. Where the original tax capacity is less than the current tax
capacity, the difference between the original net tax capacity and the current net tax capacity
is the captured net tax capacity. This amount less any portion thereof which the authority has
designated, in its tax increment financing plan, to share with the local taxing districts is the
retained captured net tax capacity of the authority.
(2) The county auditorshall exclude the retained captured net tax capacity ofthe authorityfrom the
net tax capacity of the local taxing districts in determining local taxing district tax rates. The
local tax rates so determined are to be extended against the retained captured net tax capacity
of the authority as well as the net tax capacity of the local taxing districts. The tax generated by
the extension of the less of(A)the local taxing district tax rates or(B)the original local tax rate
to the retained captured net tax capacity of the authority is the tax increment of the authority.
The City will choose to calculate fiscal disparities by clause b.
According to M.S., Section 469.177, Subd. 3:
(c) The method of computation of tax increment applied to a district pursuant to paragraph (a)or
(b)shall remain the same for the duration of the district, except that the governing body may
elect to change its election from the method of computation in paragraph(a) to the method in
paragraph(b).
Subsection 2-12. Business Subsidies
Pursuant to MS., Section 116J.993,Subd. 3,the following forms of financial assistance are not considered
a business subsidy:
(1) A business subsidy of less than$150,000;
(2) Assistance that is generally available to all businesses or to a general class of similar businesses,
such as a Iine of business,size,location,or similar general criteria;
(3) Public improvements to buildings or lands owned by the state or local government that serve a
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public purpose and do not principally benefit a single business or defined group of businesses at
the time the improvements are made;
(4) Redevelopment property polluted by contaminants as defined in M.S.,Section 11 6J.552,Subd. 3;
(5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing
it up to code and assistance provided for designated historic preservation districts,provided that
the assistance is equal to or less than 50%of the total cost;
(6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to
provide those services;
(7) Assistance for housing;
(8) Assistance for pollution control or abatement,including assistance for a tax increment financing
hazardous substance subdistrict as defined under M.S., Section 469.174, Subd. 23;
(9) Assistance for energy conservation;
(10) Tax reductions resulting from conformity with federal tax law;
(11) Workers'compensation and unemployment compensation;
(12) Benefits derived from regulation;
(13) Indirect benefits derived from assistance to educational institutions;
(14) Funds from bonds allocated under chapter 474A,bonds issued to refund outstanding bonds, and
bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal
Revenue Code of 1986,as amended through December 31, 1999;
(15) Assistance for a collaboration between a Minnesota higher education institution and a business;
(16) Assistance for a tax increment financing soils condition district as defined under M.S., Section
469.174, Subd. 19;
(17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation
is 70 percent or more of the assessor's current year's estimated market value;
(18) General changes in tax increment financing law and other general tax law changes of a principally
technical nature;
(19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local
government agency;
(20) Funds from dock and wharf bonds issued by a seaway port authority;
(21) Business loans and loan guarantees of$150,000 or less;
(22) Federal loan funds provided through the United States Department of Commerce,Economic
Development Administration;and
(23) Property tax abatements granted under M.S., Section 469.1813 to property that is subject to
valuation under Minnesota Rules,chapter 8100.
The City will comply with M.S., Sections 116J.993 to 1161.995 to the extent the tax increment assistance
under this TIF Plan does not fall under any of the above exemptions.
Subsection 2-13. County Road Costs
Pursuant to M.S, Section 469.175, Subd. 1a,the county board may require the City to pay for all or part of
the cost of county road improvements if the proposed development to be assisted by tax increment will,in
the judgment of the county, substantially increase the use of county roads requiring construction of road
improvements or other road costs and if the road improvements are not scheduled within the next five years
under a capital improvement plan or within five years under another county plan.
If the county elects to use increments to improve county roads,it must notify the City within forty-five days
of receipt of this TIF Plan. In the opinion of the City and consultants,the proposed development outlined
in this TIF Plan may have an impact upon county roads,therefore the TIF Plan was forwarded to the county
45 days prior to the public hearing.
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The City is certainly aware of construction work on Highway 36 and its frontage areas in conjunction with
the St.Croix River Crossing.Washington County and the Minnesota Department ofTransportation(MnDOT)
have collaborated on various repairs and reconstructions of County roads,including the portion of County-
owned Osgood Avenue at the intersection of 60'"St.and Highway 36.The City reasonably believes that these
improvements to Osgood Avenue have been planned by Washington County in collaboration with Mn DOT,
as a part of the St.Croix River Crossing project.This collaboration and the improvements to Osgood Avenue
are occurring independently of any development project in the District, and would occur whether or not
development is commenced in the District. In fact, the City believes the proposed development actually
reduces traffic burdens on Osgood Avenue,due to a proposed frontage road access point located further to
the north away from the busy Osgood Avenue/Highway 36 intersection.The relocation of this access point
will greatly assist the flow of traffic in this area.Therefore,while the City values the input on the County for
this TIF construction of road improvements, and (ii) has no relationship to the ongoing and previously
planned improvements on Osgood Avenue.The City would value the County's opinion and needs should a
final development scenario occur that would trigger a substantial increase in the use of county roads requiring
construction of road improvements or other road costs.
Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions
The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF
Plan would occur without the creation of the District. However, the City has determined that such
development or redevelopment would not occur"but for" tax increment financing and that,therefore, the
fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as
follows if the"but for"test was not met:
IMPACT ON TAX BASE
Pay 2014 Estimated Captured
Total Net Tax Capacity(CTC) Percent of CTC
Tag Capacity Upon Completion to Entity Total
Washington County 238,377,526 181,809 0.0763%
City of Oak Park Heights 7,667,358 181,809 2.3712%
Stillwater ISD No. 834 73,625,603 181,809 0.2469%
IMPACT ON TAX RATES
Pay 2014 Percent Potential
Extension Rates of Total CTC Taxes
Washington County 0.328114 27.29% 181,809 59,654
City of Oak Park Heights 0.596408 49.60% 181,809 108,432
Stillwater ISD No. 834 0.231499 19.25% 181,809 42,089
Other 0.046406 3.86% 181.809 8.437
Total 1.202426 100.00% 218,612
The estimates listed above display the captured tax capacity when all construction is completed. The tax rate
used for calculations is the actual Pay 2014 rate. The total net capacity for the entities listed above are based
on actual Pay 2014 figures. The District will be certified under the actual Pay 2015 rates.
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Pursuant to M.S. Section 469.175 Subd. 2(b):
(1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be
generated over the life of the District is$2,832,860;
(2) Probable impact of the District on cityprovided services and ability to issue debt. An impact of the
District on police protection is not expected. The City does not expect that the proposed
development,in and of itself,will necessitate new capital investment.
The probable impact of the District on fire protection is not expected to be significant. Typically new
buildings generate few calls,if any,and are of superior construction. The existing non-sprinklered
buildings within the District will be eliminated by the proposed new development.
The impact of the District on public infrastructure is expected to be minimal. The current
infrastructure for sanitary sewer,storm sewer and water will be able to handle the additional volume
generated from the proposed development. Based on the development plans, there are may be
additional costs associated with street maintenance, sweeping,plowing,lighting and sidewalks. The
development in the District is not expected to contribute to sanitary sewer(SAC)and water(WAC)
connection fees.
The probable impact of any District general obligation tax increment bonds on the ability to issue
debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any
general obligation debt issued in relation to this project, therefore there will be no impact on the
City's ability to issue future debt or on the City's debt limit.
(3) Estimated amount of tax increment attributable to school district levies. It is estimated that the
amount of tax increments over the life of the District that would be attributable to school district
levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions
remained the same,is$545,326;
(4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of
tax increments over the life of the District that would be attributable to county levies,assuming the
county's share of the total local tax rate for all taxing jurisdictions remained the same,is$773,087;
(5) Additional information requested by the county or school district. The City is not aware of any
standard questions in a county or school district written policy regarding tax increment districts and
impact on county or school district services. The county or school district must request additional
information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax
increment financing plan.
No requests for additional information from the county or school district regarding the proposed
development for the District have been received.
Subsection 2-15. Supporting Documentation
Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and
description of studies and analyses used to make the determination set forth in M.S.Section 469.175,Subd.
3, clause(b)(2) and the findings are required in the resolution approving the District. Following is a list of
reports and studies on file at the City that support the City's findings:
• Resolution No. 14-08-39:Resolution determining that certain parcels:untended to be included within
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a proposed Renewal and Renovation TIF District are deemed to be occupied by structurally
substandard buildings
Renewal and Renovation Tax Increment Financing District Eligibility Study. 2014.
Subsection 2-16. Definition of Tax Increment Revenues
Pursuant to M.S.,Section 469.174,Subd.25,tax increment revenues derived from a tax increment financing
district include all of the following potential revenue sources:
1. Taxes paid by the captured net tax capacity,but excluding any excess taxes,as computed underM.S,
Section 469.177;
2. The proceeds from the sale or lease of property,tangible or intangible,to the extent the property was
purchased by the Authority with tax increments;
3. Principal and interest received on loans or other advances made by the Authority with tax increments;
4. Interest or other investment earnings on or from tax increments;and
5. Repayments or return of tax increments made to the Authority under agreements for districts for
which the request for certification was made after August 1, 1993.
Subsection 2-17. Modifications to the District
In accordance with M.S., Section 469.175, Subd. 4,any:
1. Reduction or enlargement of the geographic area of the District,if the reduction does not meet the
requirements of M.S., Section 469.175, Subd. 4(e);
2. Increase in amount of bonded indebtedness to be incurred;
3. A determination to capitalize interest on debt if that determination was not a part of the original TIF
Plan;
4. Increase in the portion of the captured net tax capacity to be retained by the City;
5. Increase in the estimate of the cost of the District,including administrative expenses,that will be paid
or financed with tax increment from the District; or
6. Designation of additional property to be acquired by the City,
shall be approved upon the notice and after the discussion,public hearing and findings required for approval
of the original TIF Plan.
Pursuant to M.S.Section 469.175 Subd. 4(l),the geographic area of the District may be reduced,but shall not
be enlarged after five years following the date of certification of the original net tax capacity by the county
auditor. If a redevelopment district or renewal and renovation district is enlarged,the reasons and supporting
facts for the determination that the addition to the district meets the criteria of M.S.,Section 469.174, Subd.
10 paragraph(a),clauses(1)and(2)or subdivision 10a,must be documented in writing and retained. The
modification requirements of the TIF Act do not apply if(1)the only modification is elimination of parcel(s)
from the District and(2)(A)the current net tax capacity of the parcel(s)eliminated from the District equals
or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or(B) the City
agrees that,notwithstanding M.S.,Section 469.177,Subd. 1,the original net tax capacity will be reduced by
no more than the current net tax capacity of the parcel(s)eliminated from the District.
The City must notify the Minnesota Commissioner of Revenue,the Minnesota State Auditor,and the County
Auditor of any modification to the District. Modifications to the District in the form of a budget modification
or an expansion of the boundaries will be recorded in the TIF Plan.
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Subsection 2-18.Administrative Expenses
In accordance with M.S., Section 469.174,Subd. 14, administrative expenses means all expenditures of the
City,other than:
1. Amounts paid for the purchase of land;
2. Amounts paid to contractors or others providing materials and services,including architectural and
engineering services,directly connected with the physical development of the real property in the
District;
3. Relocation benefits paid to or services provided for persons residing or businesses located in the
District;or
4. Amounts used to pay principal or interest on,fund a reserve for,or sell at a discount bonds issued
pursuant to M.S., Section 469.178;or
5. Amounts used to pay other financial obligations to the extent those obligations were used to finance
costs described in clauses(1)to(3).
For districts for which the request for certification were made before August 1, 1979,or after June 30, 1982,
and before August 1,2001,administrative expenses also include amounts paid for services provided by bond
counsel,fiscal consultants,and planning or economic development consultants.
For districts for which certification was requested after July 31,2001,no tax increment may be used to pay
any administrative expenses for District costs which exceed ten percent of total estimated tax increment
expenditures authorizedby the TIF Plan or the total tax increments,as defined in M.S.,Section 469.174,Subd.
25, clause(1),from the District,whichever is less.
Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual
administrative expenses incurred in connection with the District and are not subject to the percentage limits
of M.S.,Section 469.176,Subd.3. The county may require payment of those expenses by February 15 of the
year following the year the expenses were incurred.
Pursuant to MS., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount(currently .36
percent)of any increment distributed to the City and the County Treasurer shall pay the amount deducted to
the State Commissioner of Management and Budget for deposit in the state general fund to be appropriated
to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of
examining and auditing authorities'use of tax increment financing. This amount may be adjusted annually
by the Commissioner of Revenue.
Subsection 2-19. Limitation of Increment
The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District
may be terminated ifsufficient funds have been irrevocably deposited in the debt service fund or other escrow
account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or
redemption date.
Pursuant to M.S., Section 469.176, Subd. 6:
if, after four years from the date of certification of the original net tax capacity of the tax
incrementfinancingdistricipursuanttoMS..,Section 469.177,no demolition,rehabilitation
or renovation of property or other site preparation, including qualified improvement of a
street adjacent to a parcel but not installation of utility service including sewer or water
systems, has been commenced on a parcel located within a tax increment financing district
by the authority or by the owner ofthe parcel in accordance with the tax incrementfinancing
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plan, no additional tax increment may be taken from that parcel and the original net tax
capacity of that parcel shall be excluded from the original net tax capacity of the tax
increment financing district. If the authority or the owner of the parcel subsequently
commences demolition,rehabilitation or renovation or other sitepreparation on thatparcel
including qualified improvement of a street adjacent to that parcel, in accordance with the
tax incrementfinancingplan,the authorityshall certify to the county auditor that the activity
has commenced and the county auditor shall certify the net tax capacity thereof as most
recently certified by the commissioner of revenue and add it to the original net tax capacity
of the tax incrementfinancing district.The county auditor must enforce theprovisions of this
subdivision. The authority must submit to the county auditor evidence that the required
activity has taken place for each parcel in the district. The evidence for a parcel must be
submitted by February 1 of thefifth yearfollowing the year in which the parcel was certified
as included in the district. For purposes of this subdivision, qualified improvements of a
street are limited to (1)construction or opening of a new street, (2) relocation of a street,
and(3)substantial reconstruction or rebuilding of an existing street.
The City or a property owner must improve parcels within the District by approximately October 2018 and
report such actions to the County Auditor.
Subsection 2-20. Use of Tax Increment
The City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property
located in the District for the following purposes:
1. To pay the principal of and interest on bonds issued to finance a project;
2. To finance, or otherwise pay the capital and administration costs of Development District No. 1
pursuant to MS., Sections 469.124 to 469.133;
3. To pay for project costs as identified in the budget set forth in the TIF Plan;
4. To finance,or otherwise pay for other purposes as provided in M.S., Section 469.176,Subd. 4;
5. To pay principal and interest on any loans,advances or other payments made to or on behalf of the
City or for the benefit of Development District No. 1 by a developer;
6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing
the payment when due of principal of and interest on bonds pursuant to the TIP Plan or pursuant to
MS., Chapter 462C.M.S., Sections 469.152 through 469.165,and/or MS., Sections 469.178;and
7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on
the tax increment bonds or bonds issued pursuant to MS., Chapter 4620, MS., Sections 469.152
through 469.165,and/or M.S., Sections 469.178.
These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other
purposes prohibited by M.S., Section 469.176, Subd. 4.
Tax increments generated in the District will be paid by Washington County to the City for the Tax Increment
Fund of said District. In addition to the activities contemplated to be taken by the City under this TIF Plan,
the City may pay to a developer(s)annually an amount not to exceed an amount as specified in a developer's
agreement to reimburse the costs of land acquisition,public improvements,demolition and relocation,site
preparation,and administration. Remaining increment funds will be used for City administration(up to 10
percent)and for the costs of public improvement activities outside the District.
Subsection 2-21. Excess Increments
Excess increments,as defined in M.S., Section 469.176,Subd 2,shall be used only to do one or more of the
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following:
1. Prepay any outstanding bonds;
2. Discharge the pledge of tax increment for any outstanding bonds;
3. Pay into an escrow account dedicated to the payment of any outstanding bonds;or
4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in
proportion to their local tax rates.
The City must spend or return the excess increments under paragraph(c)within nine months after the end
of the year. In addition,the City may,subject to the limitations set forth herein,choose to modify the TIF
Plan in order to finance additional public costs in Development District No. 1 or the District.
Subsection 2-22. Requirements for Agreements with the Developer
At this time there are no private development agreements. The City will review any proposal for private
development to determine its conformance with the Development Program and with applicable municipal
ordinances and codes. To facilitate this effort,the following documents may be requested for review and
approval:site plan,construction,mechanical,and electrical system drawings,landscaping plan,grading and
storm drainage plan,signage system plan,and any other drawings or narrative deemed necessary by the City
to demonstrate the conformance of the development with City plans and ordinances. The City may also use
the Agreements to address other issues related to the development.
Pursuant to MS., Section 469.176, Subd. 5, no more than 25 percent, by acreage, of the property to be
acquired in the District as set forth in the TIF Plan shall at any time be owned by the City as a result of
acquisition with the proceeds of bonds issued pursuant to M.S.,Section 469.178 to which tax increments from
property acquired is pledged, unless prior to acquisition in excess of 25 percent of the acreage, the City
concluded an agreement for the development or redevelopment of the property acquired and which provides
recourse for the City should the development or redevelopment not be completed.
Subsection 2-23.Assessment Agreements
Pursuant to M.S., Section 469.177, Subd. 8, the City may enter into a written assessment agreement in
recordable form with the developer of property within the District which establishes aminimum market value
of the land and completed improvements for the duration of the District. The assessment agreement shall be
presented to the County Assessor who shall review the plans and specifications for the improvements to be
constructed,review the market value previously assigned to the land upon which the improvements are to be
constructed and,so long as the minimum market value contained in the assessment agreement appears,in the
judgment of the assessor,to be a reasonable estimate,the County Assessor shall also certify the minimum
market value agreement.
Subsection 2-24.Administration of the District
Administration of the District will be handled by the City Administrator.
Subsection 2-25.Annual Disclosure Requirements
Pursuant to M.S.,Section 469.175,Subds. 5, 6,and 6b the City must undertake financial reporting for all tax
increment financing districts to the Office of the State Auditor, County Board and County Auditor on or
before August 1 of each year. M.S.,Section 469.175,Subd. 5 also provides that an annual statement shall be
published in a newspaper of general circulation in the City on or before August 15.
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If the City fails to make a disclosure or submit a report containing the information required by MS.,Section
469.175 Subd. 5 and Subd. 6, the OSA will direct the County Auditor to withhold the distribution of tax
increment from the District.
Subsection 2-26. Reasonable Expectations
As required by the TIF Act,in establishing the District,the determination has been made that the anticipated
development would not reasonably be expected to occur solely through private investment within the
reasonably foreseeable future and that the increased market value of the site that could reasonably be expected
to occur without the use of tax increment financing would be less than the increase in the market value
estimated to result from the proposed development after subtracting the present value of the projected tax
increments for the maximum duration of the District permitted by the TIF Plan.In making said determination,
reliance has been placed upon written representation made by a private developer to such effects and upon
City staff awareness of the feasibility of developing the project site(s)within the District. A comparative
analysis of estimated market values both with and without establishment of the District and the use of tax
increments has been performed as described above. Such analysis is included with the cashflow in Appendix
D,and indicates that the increase in estimated market value of the proposed development(less the indicated
subtractions)exceeds the estimated market value of the site absent the establishment of the District and the
use of tax increments.
Subsection 2-27. Other Limitations on the Use of Tax Increment
1. General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF
Plan. The revenues shall be used to finance, or otherwise pay the capital and administration costs of
Development District No. 1 pursuant to MS., Sections 469.124 to 469.133.Tax increments may not be
used to circumvent existing levy limit law. No tax increment may be used for the acquisition,
construction,renovation,operation,or maintenance of a building to be used primarily and regularly for
conducting the business of a municipality,county,school district,or any other local unit of government
or the state or federal government. This provision does not prohibit the use of revenues derived from tax
increments for the construction or renovation of a parking structure.
2. Poolina Limitations. At least 75 percent of tax increments from the District must be expended on
activities in the District or to pay bonds,to the extent that the proceeds of the bonds were used to finance
activities within said district or to pay,or secure payment of,debt service on credit enhanced bonds. Not
more than 25 percent of said tax increments may be expended,through a development fund or otherwise,
on activities outside of the District except to pay,or secure payment of,debt service on credit enhanced
bonds. For purposes of applying this restriction,all administrative expenses must be treated as if they
were solely for activities outside of the District.
3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall
be deemed to have satisfied the 75 percent test set forth in paragraph(2)above only if the five year rule
set forth in MS., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year
following certification of the District,75 percent of said tax increments that remain after expenditures
permitted under said five year rule must be used only to pay previously committed expenditures or credit
enhanced bonds as more fully set forth in M.S., Section 469.1763,Subd. 5.
4. Renewal and Renovation District. At least 90 percent of the revenues derived from tax increment from
a renewal and renovation district must be used to finance the cost of correcting conditions that allow
designation of renewal and renovation districts under M.S., Section 469.176 Subd. 4j. These costs
include, but are not limited to, acquiring properties containing structurally substandard buildings or
improvements or hazardous substances,pollution,or contaminants,acquiring adjacent parcels necessary
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to provide a site of sufficient size to permit development, demolition and rehabilitation of structures,
clearing of the land,the removal of hazardous substances or remediation necessary for development of
the land,and installation of utilities,roads,sidewalks,and parking facilities for the site. The allocated
administrative expenses ofthe City,including the cost ofpreparation of the development action response
plan,may be included in the qualifying costs.
Subsection 2-28, Summary
The City of Oak Park Heights is establishing the District to preserve and enhance the tax base,redevelop
substandard areas, and provide employment opportunities in the City. The TIF Plan for the District was
prepared by Ehlers &Associates, Inc., 3060 Centre Pointe Drive, Roseville,Minnesota 55113, telephone
(651)697-8500.
City of Oak Park Heights Tax Increment Financing Plan for Tax Increment Financing District No.1-2 2-15
Page 102 of 182
Appendix A
Project Description
Tax Increment Financing District No. 1-2 is being created to facilitate the redevelopment of the northwest
quadrant of the Osgood Avenue and State Trunk Highway 36 in the City of Oak Park Heights.Tax increment
will also be used for land acquisition costs,utility replacement,street construction and reconstruction,and
other similar expenses authorized by state law.The City will purchase certain land and easements as approved
by the City Council.
In addition,funds may be used to assist with the future redevelopment of the area after the improvements
related to Highway 36 are completed.The City has been in discussions with a potential developer,but has
not entered into a development agreement at the time of the establishment of the District.
TIP funds may be used by the City to pay off an interfund loan. Any assistance provided for future
redevelopment will be in the form of a pay-as-you-go note.
Appendix A-1
Page 103 of 182
Appendix B
Map of Development District No. 1 and the District
Appendix B-1
Page 104 of 182
Tax Increment Financing District No.1-2
Development District No.1
City of Oak Park Heights
Washington County,MN
i
TIFAml-2{2014 I
f I ° _ E
li
.J
t9y f Wk Park Hciahts
on
Aa �y
Feet
0 750 1,500 3,000 4,504 6,006
Page 105 of 182
40 i" 16.2
F N
i C-5
WO 141�1 43?
ES 44
TIF District No. 1-2
la
I m
A
Col.— -101
60th St N
p V
L 4.1 4.
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Page 106 of 182
Appendix C
Description of Property to be Included in the District
The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the
parcels listed below.
Parcel Numbers Address Owner
33.030.20.43.0038 Leonard Investments LLC
33.030.20.43.0040 6180 Osgood Ave NE City of Oak Park Heights
Economic Development
Authority
33.03020.43.0057 14738 60'h St.N Erickson Post Acquisition Inc
33.030.20.43.0059 6130 Osgood Ave NE City of Oak Park Heights
33.030.20.43.0042 14702 60th St.N Leonard Investments LLC
33.030.20.43.0039 6148 Osgood Ave N Daniel and Franaheska
Wortman
33.030.20.43.0047 ROW State of Minnesota
33.030.20.43.0056 6118 Osgood Ave N 2005 II LLC
Appendix C-1
Page 107 of 182
Appendix D
Estimated Cash Flow for the District
Appendix D-1
Page 108 of 182
52W2D14 Bees Value Assunptions-Page 1
EHLERS
11"I sS IN enpHC rs5•N nIRUC iINAnt.
Tax Increment Financing District No.1-2-2%Inflation
City OF Oak Park Heights,UN
Radevelopresnt along Osgood and 80th Slrest
DistristTyps: Rarrewel and Rancvaticn Tax Rates
Dlstdat NamaMlumbar. 71F 1-2
County District#: Exempt Class Rata(Exempt) Mon.
Flmt Year Conslructlon or Inflation on Value 2015 Commercial Industrial Preferred Class Rate(G4 Pmf.)
Existing District-Specify No,Years Remaihing first $150,000 150%
Inflation Rem-Emory Year. 2.00% Over $150,0130 200%
Irilzmat Rate: 4,00% CornmareW Ind,rstnal Class Rate(Cll) 2.00%
Present Valm Date: 1.1`81-16 Rental.busing Class Rate(Rental) 1.25%
First Period Ending 1-Aug-16 Affordable Rental Housing Cfase Rate(Ae.Rental)
Tax Year District was Certified: Pay 2D,5 Frrat $100,000 0.76%
Cashtlow sim
Aaes First Tax Increment For Development 2017 Over $100,ODD 0.25%
Y...of Tax Increment 16 Non-Homestead Raaldental(Non-H Res 1 Unit)
Aaaumss Last Year of Tax lrasamaat 2032 First $500.000 1.00%
Fiscal Dlsparldea Erection[Oumida(A),Inside(B),or NA] Inside(B) Over $500,000 1.25%
Incremental or Total Fiscal Disport" Incramardal Homestead Resid6rtal Class Rats(Hmsld.Re_.)
Fiscal Disperides CorddDudon Redo 3828499E Pay 2014 First $50D,000 1.00%
Fiscal Disparities AAatro-Wide Tax Rate 108.1210% Pay 2014 Over $500,000 125%
MaxlmumfFrozen Local Tex Ram: 120.243% Pay 2014 Agrlahum!Non-Homestead 1.DO;i
Current Local Tax Ram:(Use lesser of Current or Max) 120.243% Pay 2014
Stem-wide Tax Rate(Commd Ind,only mail for total taxes) 52.1600% Pay2614
Market Value Tax Rate(Uaed car total taxes) 0.23135% Pay2D14
Building Total percentage TaxYesr Property Currant Class Agar
Land Market Market Of Value Used Original Original Tax Original ARar Conwarsion Amef
Map 0 PID Owner Address Martel Value Value Value for DIBtrict Market Value Marked Value Class Tax Ca cl Cc--ion Ord.Tax Can. Phaaa
ey
B 33.030.2043.00413 OPH EDA 61800agood 125,200 100%. 1282013 Pay2016 Exempt - CA Pre$. 1,803
C 33.g30.2DA3.0057 14738 60th SL 2&6700 100% 284,700 Pey 2015 CA Prof. 4,044 CA Prof. 4,944
D 33.030.20A3.0069 0130 Osgood 159,300 100% 159,300 Pay2D15 Hmstd.Rea. 1.5!,21 CII Prof. 2438
E 33.03D.20A3.1042 1470280th SL 1,450,000 100% 1,450,000 Pay 2015 CA Prof. 28260 CA Prof. 28,250
F 33.030,20A&.030 0148 Osgood 293,900 100% 293,800 Pay 2015 Hma4d.Ras. 2.939 CA Pref. 5,120
G 88,030.20.43.0047 State of MN ROW 0 100% D Pey 2015 Exempt - Cll Pmf. -
H 88.030.2g.48A058 0118 Osgood 428,700 109% 42$.700 Pay 2D15 CA Prof. 7,824 C41 Pmf. 7,624
2,979,000 40
Note:
1.Base values are based upon mlwp of County vmbslm on August 25,21114.
Pap eredey6hrw aAaueetMIna-Eeaeu1n0rdy N:NtkrapreVDek Pak Heldrhe[o N-FCame k-Rrdrral spean6TIRTIFDktkM'nF1-ZTIFRam1TF-"—Dap ld-11FPhe
Page 109 of 182
8!2912014 ease Varus Amumptlons-Page2
EHLERS
rewtas rx wenrcetawu
Tax Inrrr7 ant Firmara if�g I]itttrlCt No.1-2-2%Inflation
City of Oak Parts Heights,MN
li id•vlopm•nt along Osgood and 80th Street
PROJECT INFORMATION(P,ojoct Tax Cipacityl
Estfmatd Timetable Total Taxable Property Porcentge Percentage Percentage Percentage First Year
Markel Value Market Total Market Tax Project Project Tex Ccrnplotd Complow CemplotOd Cornplehd Full Taxes
ArenfPhaee New Use Per Sq.Plltlnit Per FWM BeyZUnit Volvo Class Tax Capacity CapaeltylUnil 2016 2018 2017 2010 Payable
I Car dealo re p 17D 170 40,000 I agoDou CA Prof. 139. 0 100% Wuw lam 10
C.—rd::Cael 175 175 25,000 ,, 4875,DCD CA Pref. 80,750 100% 100% 1Od16 2018
8 Comm rd 200 200 5.000 1,DOD,DDD CA Praf. 192W 50% 100% 100% 2019
TOTAL ;iiBiP ^'
Subtatel Resrdonlial 0 0
Sublotal CornmerclallInd. 70.000 12,,3mcm Yi0.
dibhl:
1,Market vdues are based open City's general estimates and discursions with potential developers.
TAX CALCULATIONS
acs cae sca • a
Tex Dlaperities Tax Property Dtparfees Property Yaluo Total Texas P•r
ifmum capacity Tex C. Capacity Taxes T®s Texas Tens Taxes .FtJUAll
Car d..I..h d.... p 130,260 48,400 92.270 111,790 76,492 72,41133 10,106 =,Ilia 6191111
Co nmorolel 00.780 28,031 57,219 69,643 47,030 40,249 10,122 172,043 eAs
Commerclsl 19.2611 qvs 12 62 16A54 10438 10 41 2.314 31444 7.06
NI
1.Tans and lax Increment will wry aignflcaney from year to year depending upon wire•,rata,state law,Sscal disparities and athor felon
which cannot be predicted.
dal Property exec CLFFO a Act t e IIB- d.
teas Glat"d•Taxes (127,022) New Merkel Value-Eat. 12::37 DO
I=Flscaf 1I Adj. (132,058) DBference
kss Market Value Texas (28,030) Prseent Value of Tex In ..rd
IS:Base Value Tauataa 43,72 Difference
Annual Gross TIF 154161 Value Iikel t occur whhout Tax Increment is leas than:
Pnpaed by ElYarr a AreoeYM,Inc.-6anYr D,tl' N1MYrwolalhk Ptak Ilrld, 9�Eeorenk-fle1B W epaaeaTl W IF GYhkYITIF 1-L�TIF 1Lmllff amhMa0aXM14-TIF PYn
Page 110 of 182
8!29!2014 Tax Increment Ca"aw-Page 3
EHLERS
-I ADtn,N MUG FINaaal
Tax Increment Financing District No.1-2-2%Inflation
City of Oak Park Heights,MN
Redevelopment along Osgood and 60th Street
INC REMENT-CASHT LOW
, .,, ., n,..,,,,.-, nnual 8em1-Annual Stem i-brl.
%of Tax Taus DlspeAtles Tax Tax Gross Tau Gross Tax Auditw at Net Tax Present ENDING Tax Payment
OTC Gael Capacity Incremental capacIty Rate Inererrrm Inclement 0.38% 1fl% Increment Value Ym. Year Date
- 02!01117
100% 139,250 (54.467) (28,178) 56,605 120.243% 68,064 34,032 (123) (31391) 30,518 28,758 0.5 2017 08101117
34,032 (123) (3,391) 30,510 56,953 1 2017 02/01/18
100% 238,410 (54,467) (61,071) 122,872 120.243% 147,745 73,873 (266) (7,361) 66,246 116,954 1.5 2018 OB101118
73,873 (266) (7.361) 66,246 175,778 2 2016 02101119
100% 252,611 (54,467) (65,853) 132,291 120.243% 159,070 79,535 (286) (7,925) 71,324 237,870 2.5 2019 08!01119
79,535 (286) (7,925) 71.324 298.744 3 2019 0210120
10O% 257,663 (54.467) (67,532) 135,664 120.243% 163.126 61,563 (294) (8.127) 73,142 359.946 3.5 2020 06/01/20
81,563 (294) (8,127) 73,142 419.949 4 2020 02101121
100% 262,816 (54.467) (69,245) 139,105 120.243% 167,263 83,631 (301) (81333) 74,997 480,266 4.5 2021 08/01121
83,631 (301) (8,333) 74,997 539,401 5 2021 02101/22
100% 268,072 (54,467) (70,992) 142,614 120.243% 171,483 85,741 (309) (8,543) 76,889 596.839 5.5 2022 08101122
85,741 (309) (8,543) 76,889 657,111 6 2022 02!01123
100% 273,434 (54,467) (72,773) 146,194 120.243% 175,787 87,893 (316) (8,758) 78,819 715,675 6.5 2023 08101123
87,893 (316) (8,758) 78.819 773,091 7 2023 02/01124
100% 278,903 (54,467) (74,591) 149,645 120.243% 180,177 90,089 (324) (8,976) 80,788 830,787 7.5 2024 08101/24
90,089 (324) (x976) 80,788 887.351 8 2024 02101115
100% 284,481 (54,467) (76,445) 153,569 120.243% 184,655 92,328 (332) (9,200) 82.796 944,184 8.5 2025 08!01125
92,328 (332) (9200) 82,796 999.904 9 2025 02101126
100% 290,170 (54,467) (78,336) 157,368 120.243% 189,223 94,611 (341) (9,427) 84,844 1455,881 9.5 2026 0110126
94,611 (341) (9.427) 84,844 1,110,762 10 2026 (12101127
100% 295,974 (54,467) (80,265) 161,242 120.243% 193,882 96,941 (349) (91659) 86,933 1,165,891 10.5 2027 0810127
96,941 (349) (9,659) 86.933 1,219,938 11 2027 0210128
100% 361,893 (54,467) (82,232) 165,194 120.243% 198,634 99,317 (358) (9,896) 89,063 1274,225 11.5 2028 0810128
99,317 (386) (9,896) 89,063 1.327.448 12 2028 0210129
100% 307,931 (54,467) (84,239) 169,226 120.243% 203,481 101,741 (366) (10,137) 9f237 1,380,900 12.5 2029 O810V29
101,741 (366) (10,137) 91,237 1,433,304 13 2029 02101130
100% 314,090 (54,467) (86,285) 173,337 120.243% 200,425 104,213 (375) (10,384) 93.454 1,485,929 13.5 2030 08!01130
104,213 (375) (10,384) 93;464 1,537,571 14 2030 02101/31
100% 320,371 (54,467) (88,373) 177,531 120.243% 213,466 106,734 (384) (10,635) 95,715 1,589,328 14.5 2031 08/01131
106,734 (384) (10435) 95,715 1.640.117 15 2031 62/01132
100% 326,779 (54,467) (90,503) 181,809 120.243% 218,612 109,306 (394) (10,891) 98,021 1,691,111 15.5 2032 08/01132
109,306 (3,44) 10 91 88,021 1,741,104 16
Total 2,849, (10,2,48) (2(13,288
Present Vafue From 02!012016 Present Versa Rata 4.00% 1941 550 990 19 456 1741 104
Prepead by EhkaaA-ChIbra,tic-Fs M660nly N.-VMnwWkOak Park HeWhbWbu9ing-E-1-Redealop-LIMMIF D1*kW71F44'P�9+in.nnc Page 111 111 of 182
Appendix E
Minnesota Business Assistance Form
(Minnesota Department of Employment and Economic Development)
A Minnesota Business Assistance Form(MBAF)should be used to report and/or update each calendar years
activity by April I of the following year.
Please see the Minnesota Department of Employment and Economic Development (DEED) website at
httv://www.deed.state.mn.us/CommuniW/�subsidies/MBAFForm.htn for information and forms.
............... ............... ............................................................. .................
Appendix E-1
Page 112 of 182
Appendix I°
Renewal and Renovation Qualifications for the District
Appendix F-1
Page 113 of 182
RENEWAL AND RENOVATION TAX
INCREMENT FINANCING
DISTRICT ELIGIBILITY STUDY
City of Oak Park Heights
TIF DISTRICT 1-2
(snaked 201 4)
1 of 47 Renewal and Rennov Dis-Oak Park Heights Eligibility Study
Page 114 of 182
Aerial View of Study Area:
u
TIF Area(2014) w
a e (Outlined in Red)
4F J
WIT
R
i µ
,
$ E24 �2i Y_fi � SC4
2 of 47 Renewal and Rennov Dis-Oak Park Heights Eligibility Study
Page 115 of 182
Identification®f Study Area
IWOLVED PROPERTIES:
PARMU&Y !i -IWISTREETNAM SIM11VPE SUFRK,pIR
' i3=264� LEONARD INVESTMEM LLC
_.. -
W6RTNI4N DANIEL D&FRANCHE5KA .6iM 056D0D AVE N
4D 330 4SOD40 CIT1'of OAK PARK FISCATS ECONOWTC DEVELMNOT AUTH 61M 05MOD AVE N
42 bilk! 2043UfI42 LEONARD iNVE"4TTUBM LLC '147Ti2 IM ST N
56 ,3 430ok 20Ofi li LLC (CARQUEM '6178 CkOOD AVE N
57 r� ERICKSON POSTACQUSMON INC 14738 69M ST N
59 ~ 0 643pp5g WESTBURYRANDY j666 :056600- AVE N
e ` _. {{ I
.._d
�I it I ; ! ♦—
TIF Area(201 4) -
� aL I
(Outlined In [Red}
)04'2 4611
X0056
W5?
s I ' Now TOa pi Cii aet�aAyr encamp IE1E"tlN#ddd kYlde
:�'�` 9.� � h_ri ? ' � �+ ,,.., ` :[ �,�b0e0f073Ih.t�VODTI7/ieflei�Yr1e11toMetlI1CP1Ee111� ! +
P 4f f - 4.: z •tom a ftpW& .CN.
�place,Oat RiC4'fatly( aff sy
e
uf0st Park 1 Eeiglrlx
P
r<�s+c"�urr
'•" W�.L alt .�.i� _1 �*: 7 e.. -.� ,_..
�GF1
0 525 f2c �C 3F5 SOfI
3 of 47 Renewal and Rennov Dis-Oak Park Heights Eligibility Study
Page 116 of 182
CRI'T'ERION 1—Coverage Test
Minnesota Statutes, Section 469.174, Subdivision 10a (a) (1)(i) requires two tests for occupied
parcels:
..."parcels consisting of 70 percent of the area of the district are occupied by buildings,
streets,utilities,or paved or gravel parking lots"
The coverage required by the parcel to be considered occupied is defined under Minnesota
Statutes, Section 469174, Subdivision 10(e), which states: "For purposes of this
subdivision, a parcel is not occupied by buildings, streets, utilities, or paved or gravel
parking lots unless 15 parent of the area of the parcel contains building, streets, utilities,
or paved or gravel parking lots."
FINDINGS
TABLE 1 —IMPROVED SQUARE FEET OF LOTS
aty of Oak Park Hefghb
TIF AREA(2014)-COVERAGE TEST
site Square O=uO@d Percent
PINS Address Feet Room Feet Oc led
9303020430038 Vacant-Parking Lot Only 79,026.20 . 42,000.00• 5396
3303020430039 '6145 OSGOOD AVE N 52,702.66 11,575.00 22%
6 010 44�QQ44 "rim.... . Q AVE _ M x{!,$44:44 l €
30302043DO42 14702 60TH 5r N 254,788.57 2181000.00 52%
303020430056 ;6118 OSGOOD AVE ,N_ 18,395.16 15,820'.00 88
3303020430057 "14738 60TH ST N 37,246.00 _ 29,00100 " 78%
303020430059 1130 OSGOOD AVE N 14,716.07 9,235.00 63
7 of 7 parcels raet the 15% coverage test under Minnesota Statutes, Section 469174,
Subdllnlsion 10(e), which results in parcels consisting of 100 percent of the area of the
proposed TIF District being occupied by buildings, streets, utilities or paved or gravel
PWWmg 119ty, Ub cxmds the 70 parrmt area wyarage reguirmoRt for the proposed TIF
District under Minnow Statutes,Section 469174,Subdiviskn (a) (1).
4 of 47 Renewal and Rennov Dis-Oak Park Heights Eligibility Study
Page 117 of 182
CRITERION 2—Substsatndand Buildings
The second criterion that must be satisfied is that at least 2 of the 6(20•/a) of the buildings in the
proposed renewal and renovation district must be found to be substandard based upon an internal
inspection. The governing statutes state:
Adihmsota Statute 469.174, Subd IOa(a)(1) (i)
"...and 20 percent of the buildings are structurally substandard......."
Subd. 10(b)
"For purposed of this subdivision,"structurally substandard"shall mean containing
defects in structural elements or a combination of deficiencies in essential utilities and
facilities,light and ventilation,fire protection,including adequate egress,layout and
condition of interior partitions,or similar factors,which defects or deficiencies are of
sufficient total significance to justify substantial renovation or clearance."
Sub& 10(c)
"A building is not structurally substandard if it is in compliance with the building code
applicable to new buildings or could be modified to satisfy the building code at a cost of
less than 15 percent of the cost of constructing a new structure of the some square footage
and type on the site. The municipality may find that a building is not as structurally
substandard under the preceding sentence on the basis of reasonably available evidence,
such as the size,type,and age of the building,the average cost of plumbing,electrical,or
st wtuaal maks,or otl similar rdiablo mdertcc. The municipality may not make,
such a determination without an interior inspection of the property,but need not have an
independent,expert appraisal prepared of the cost of repair and rehabilitation of the
building."
BUILDING ANALYSIS
The properties at 6130 and 6180 Osgood Ave.N. were inspected from the exterior and the
interior. Building Code violations for each building are listed below but are not limited to:
5 of 47 Renewal and Rennov Dis-Oak Park Heights Eligibility Study
Page 118 of 182
6130 Qs ood Ave.N. —The single family home,with attached storage building and detached
garage is currently occupied.
1. Several types of siding in place(primarily 4. Several types of roofing material--all in
wooden)missing and damaged in areas. 2006 some point of failure. Interior shows evidence
IRC 703—Remedy*Cost: $15,000 of water intrusion. 8905—Remedy Cost:
$20,000
2. 1900's home with various additions and old 5.20+yr.old heating system. Home formerly
windows. If energy calculations were run it is coal heated.Closed off spaces and crawl
likely that currm R veal would not me# qnm, Wood burnimg fi lms ba n
code. MN Energy Code-Remedy Cost: primary heating source. h4E1 VAC should be
$109000 replaced.2006 EMC/IFGC—Remedy Cost:
$159000
3. Attic living area does not have compliant 6. Other areas of violation include but are not
stairway and has door to outside with no means limited to(a)potential asbestos in kitchen floor
of egress. IRC 311—Remedy Cost:$5,000 tale(b)electrical wiring(c)smoke detector
placemmd and(d)likely some Mural
damage to framing as a result of water
i nteusion.
PICTURES CAN BE FOUND IN—Exhibit 1
}Estimated total cost to bring building up to salsmat building code standards: $65,000+/
Estimated cost of a new building: $199,314
15% of the estimated.cost of a new buildiag:$29,097
Since the estimated total cost to renovate the existing building exceeds 15%of the cost to
construct a new building,the building at 6130 Osgood Ave.N.does meet the statutory,definition
of"substandard."
B of 47 Renewal and Rennov Dis-Oak Park Heights Eligibitity Study
Page 119 of 182
6180 Osood Ave.N—The single family home,with attached garage,is currently vacant and
has been so for approximately four years.
1. Wooden siding and eaves are damaged in 5.If energy calculations were run it is likely
areas and show signs of moisture intrusion/ that current R values would not meet code.
damage. 2006 IRC 703 -Remedy Cost: MN Energy Code-Remedy Cost:$20,000
$15,000
2. Extensive mold to finished lower level and 6. Fire separation is absent between house and
visible to upper level interior walls. Full connected garage. IRC 302—Remedy Costa
abatement to lower level and wall,attic areas 550090
required. Remedy Cost: $50,000
3. Hot water boiler heating system is not in 7.Other areas of violation include but are not
operation and has not been in recent use. limited to(a)smoke detectors(b)electrical and
MeduWW systetns require w1aft MN grant fuse box panel(e)plumbing sys rs
Energy Code,2006 IMC&IFGC—Remedy (d)chimney flues and(d)likely structural
Cost: S 20,000 damage to wood flaming as a result of element
instruction to house.
4.Foundation has failed to the SW corner and
is showing evidence of failure to the W. IRC
404—Remedy Cost$20,000
PICTURES CAN BE FOUND IN—Exhibit 2
Estimated total cost to bring building up to current building code standards: $130,000+l-
Estimated cost of a new building:$209,874
15%of the estimated cost of a new building: $31,481
Since the estimated total cost to renovate the existing building exceeds 15%of the cost to
construct a new building,the building at 6180 Osgood Ave.N.does meet the statutory definition
of"substandard."
7 of 47 Renewal and Rennov Dis-Oak Park Heights Eligibility Study
Page 120 of 182
FINDING
2 of the 6 buildings (333 percent) in the proposed TIF District contained code deficiencies
exceeding the 15 percent threshold required by Minnesota Ste, Section 469.174,
Subdivision 10(c).
Minnesota Statutes, Section 469.174, Subdivision 10(c), provides for the minimum threshold of
code deficiencies that must be met in order to consider a building substandard. If a building
meets the minimum code deficiency threshold under Minnesota Statutes, Section 469.174,
Subdivision 10(c), then in order for such building to be "structurally substandard" under
Minnesota Statutes, Section 469.174, Subdivision 10(6), the building's defects or deficiencies
should be of sufficient total significance to justify substantial renovation or clearance."
In our professional opinion, 2 of the 2 buildings (100 percent) in the proposed TIF District are
structurally substandard to a degree requiring substantial renovation or clearance, because of
defects in structural elements or a combination of deficiencies in essential utilities and facilities,
light and ventilation, fire protection including adequate egress, layout and condition of interior
partitions, or similar factors which defects or deficiencies are of sufficient total significance to
justify substantial renovation or clearance.
CONCLUSION
The statutory conditions for both lot coverage and percentage of substandard buildings in the
proposed redevelopment area are mot.
8 of 47 Renewal and Rennov Dis-Oak Park Heights Eligibility Study
Page 121 of 182
Exhibit 1
Photographs of 6130 Osgood Ave.
9 of 47 Renewal and Rennov Dis-Oak Park Heights Eligibility Study
Page 122 of 182
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Exhibit 2
Photographs of 6180 Osgood Ave.
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Appendix G
Findings Including But/For Qualifications
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan(TiF
Plan) for Tax Increment Financing District No. 1-2(District), as required pursuant to Minnesota Statutes,
Section 469.175, Subdivision 3 are as follows:
1. Finding that Tax Increment Financing District No. 1-2 is a renewal and renovation district as defined
in MS,Section 469.174, Subd. 10a(1).
The District consists of eight parcels,with plans to redevelop the area for commercial purposes. At least
70 percent of the area of the parcels in the District are occupied by buildings,streets,utilities,paved or
gravel parking lots or other similar structures,more than 20 percent of the buildings in the District are
structurally substandard,and 30 percent of the otherbuildings require substantial renovation or clearance.
(See Appendix F of the TIF Plan.)
2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be
expected to occur solely through private investment within the reasonably foreseeable future and that the
increased market value of the site that could reasonably be expected to occur without the use of tax
increment financing would be less than the increase in the market value estimated to result from the
proposed development after subtracting the present value of the projected tax increments for the
maximum duration of the District permitted by the TIF Plan.
The proposed development, in the opinion of the City,would not reasonably be expected to occur solely
through private investment within the reasonably foreseeablefuture:This finding is supported by the fact
that the redevelopment proposed in the TIF Plan meets the City's objectives for redevelopment. Due to
the high cost of redevelopment on the parcels currently occupied by substandard buildings or by
buildings requiring substantial renovation or clearance,the limited amount of commercial property for
expansion adjacent to the existing project site,the incompatible land uses at close proximity(including
the inadequate layout of an existing frontage road in the southern portion of the site), and the cost of
financing the proposed improvements,this project is feasible only through assistance,in part,from tax
increment financing. Tax increment will be used to for land acquisition costs,utility replacement and
street reconstruction,and other similar expenses authorized by state law.These parcels contain verified
substandardbuildings or buildings requiring substantial renovation or clearance and are eligible for future
redevelopment.It is anticipated that acquisition expenses for the needed parcels will total approximately
$550,000. Tax increment funds will be used to pay the City's interfund loan for the acquisition.
Additional funds may be used to assist with future redevelopment of the northwest quadrant of the
intersection, during or after the improvements related to Highway 36 are completed,including but not
limited to the reconstruction of the State-owned frontage road at the intersection of Osgood Avenue and
State Trunk Highway 36. (See attachment in Appendix G of the TIF Plan.)
The increased market value of the site that could reasonably be expected to occur without the use of tax
incrementfinancing would be less than the increase in marketvalue estimated to resultfrom theproposed
development aftersubtracting the present value oftheprojected tax incrementsfor the maximum duration
of the District permitted by the TIF Plan:This finding is justified on the grounds that the cost of land
acquisition,site and public improvements and utilities prohibitively add to the total redevelopment cost.
Historically,site and public improvements costs in this area have made redevelopment infeasible without
tax increment assistance.This site has been marketed for at least 8 years without success.The proposed
realignment of the frontage road will provide better access and connections with Highway 36 and provide
land for a larger redevelopment site. In addition,the project will include demolition of two substandard
buildings.The City reasonably determines that no other redevelopment of similar scope is anticipated on
Appendix G-1
Page 161 of 182
this site without substantially similar assistance being provided to the development.
It is possible that some development of the property within the District would go forward without tax
increment assistance,but the unique costs of this effort mean that without tax increment assistance,any
alternative development would necessarily be carried out at a smaller scale,and most likely over a longer
period of time.It is impossible to predict what an alternative market value would be if no tax increment
assistance were provided,but it is certain that the alternative development would produce significantly
less value than the comprehensive,high-quality development that is proposed under the TIF Plan.
Therefore,the City concludes as follows:
a. The City's estimate of the amount by which the market value of the entire District will
increase without the use of tax increment financing is$0,or a small amount due to low-level
inflation.
b. If the proposed development occurs,the total increase in market value in the District will be
approximately$9,395,100.
C. The present value of tax increments from the District for the maximum duration of the
District permitted by the TIF Plan is estimated to be$1,941,550.
d. Even if some development other than the proposed development were to occur,the Council
finds that no alternative would occur that would produce a market value increase greater than
$7,453,550 (the amount in clause b less the amount in clause c) without tax increment
assistance.
3. Finding that the TIF Plan for the District conforms to the general plan for the development or
redevelopment of the municipality as a whole.
The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the
general development plan of the City.
4. Finding that the TIFP1an for the District will afford maximum opportunity,consistent with the sound
needs of the City as a whole,for the development or redevelopment of Development District No. 1
by private enterprise.
The project to be assisted by the District will result in increased employment in the City and the State
of Minnesota,the renovation of substandard properties,increased tax base of the State and add a high
quality development to the City.The District will be located at the first intersection on the Minnesota
side of the new St. Croix River Crossing, and a high-quality development bolstered by the tax
increment assistance contemplated in the TIF Plan will provide many opportunities for
redevelopment of the District and the Development District.
Appendix G-2
Page 162 of 182
But-For AnaIysis
Current Market Value 2,979,900
New Market Value-Estimate 12,375,000
Difference 9,395,100
Present Value of Tax Increment 1,941,550
Difference 7,453,550
Value Likely to Occur Without TIF is Less Than: 7,453,550
Appendix G-3
Page 163 of 182
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Page 164 of 182
ri
Oak Park Heights 13
Request for Council Action
Meeting Date October 14, 2014
Agenda Item Party in the Park 2015
Time Req. s
Agenda Placement Old Business
Originating DepartmentJRequestor dministration/Jennifer Pinski
Requester's Signature
Action Requested Discuss and Set Date, Time, and Location for Party in the Park 2015
Background/Justification (Please indicate any previous action has been taken or if other public
bodies have been advised).
The Party in the Park Committee met to discuss possible dates for Party in the Park 2015. The
Committee is recommending two options and is requesting that the City Council set the date,
time, and location for Party in the Park. Below is the recommendation:
Dates: National Night Out, Tuesday, August 4 OR Thursday, September 3
Time: 4:30 p.m. —6:30 p.m.
Location: Brekke Park
Page 165 of 182
THIS PAGE IS INTENTIONALLY LEFT BLANK
Page 166 of 182
%Trt .
Oak Park Heights
Request for Council Action 14
Meeting Date October 14, 2014
Agenda Item Schedule City Council Meeting to Canvass 2014 Election Results
Time Req. 5
Agenda Placement New Business
Originating Department/Requestor Administration/Jennifer Pinski
Requester's Signature
Action Requested Schedule meeting
Background/Justification (Please indicate any previous action has been taken or if other public
bodies have been advised).
The City Council previously took action to cancel all regularly scheduled meetings in the month
of November and to instead have one meeting during that month on November 18.
State Statute requires that the City canvass results of the general election (which is November 4)
between the third and tenth day following that election(between November 7 and November
14).
Please keep in mind that City Hall is closed on Tuesday,November 11.
The City Council may wish to schedule a City Council meeting for Monday,November 10 or
Wednesday, November 12. The Planning Commission's meeting is Thursday,November 13.
The City Council may wish to cancel or reschedule the November 18 meeting as it may not be
necessary to have a meeting two weeks in a row.
Page 167 of 182
THIS PAGE IS INTENTIONALLY LEFT BLANK
Page 168 of 182
� y
15
Oak Park Heights
Request for Council Action
Meeting Date October 14`x', 2014
Time Required: 5 Minutes
Agenda Item Title: Bayport Fire Dept-A-dvisory Committee
Agenda Placement New Btw ess
Originating Departme e orA ' ohnson City Administrator
Requester's Signature
Action Requested Appointment to Bayport Fire Dept. AdvisoEy Committee
Background/Justificatic, (Please indicate if any previous action has been taken or if other public
bodies have advised):
The City has received the enclosed request from the City of Bayport. They effectively are seeking the City Council
designate a person to participate in this Bayport Fire Department Advisory Committee.
(I would think ideally this would be an elected official).
This Committee would appear to be a standing committee and the Council should also consider planning to appoint
an individual at the beginning of each year similar to other committees.
The intention of the Committee would be:
"The committee would meet quarterly to provide an opportunity to share informational updates on fire call statistics,
fire hall design and construction.. projected budgets, capital purchases, along with any questions or concerns the
communities may have. This committee would not have formal review jurisdiction over budgets or purchases of the
department, but would simply be advisory and informational." (excerpted from the invitation)
Page 169 of 182
Eric Johnson
From: Logan Martin <LMartin @ci.bayport.mn.us>
Sent: Monday, October 06, 2014 9:30 AM
To: Susan St. Ores; 'Dan Kyllo'; marymccomber @aol.com; 'Grand]ienard, Kent (DOC)'
Cc: 'Swenson, Mark (Mark.Swenson @AndersenCorp.com)'; Eric Johnson; 'Connie Fredkove'
Subject: Bayport Fire Dept. Advisory Committee
Hello all,
Chief Swenson and I have been considering opportunities to increase communication and information flow amongst the
communities served by the Bayport Fire Department. As such, we would like to invite you to participate in a Fire
Department Advisory Committee. I'm contacting you because Mark or I have talked to you about it, but please pass
along to another member of your Council/Board if you are unable to participate.
The committee would meet quarterly to provide an opportunity to share informational updates on fire call statistics,fire
hall design and construction, projected budgets, capital purchases, along with any questions or concerns the
communities may have. This committee would not have formal review jurisdiction over budgets or purchases of the
department, but would simply be advisory and informational.
We'd like to have a kick-off meeting to introduce this idea and begin the process, while also establishing a meeting
schedule that works for all involved. Please let me know what meeting times from the list below would work for you,
and I will send a follow-up confirmation email.
Thursday, 10/9 at 1:30pm
Thursday, 10/9 at 3pm
Tuesday, 10/14 at 1:30pm
Tuesday, 10/14 at 3pm
Wednesday, 10/15 at 1:30pm
Thursday, 10/16 at 1:30pm
Thursday, 10/16 at 3pm
Let me know if you have any questions, and thanks for your consideration!
Have a good day,
Loga n
Logan Martin
City Administrator
City of Bayport
651-275-4404
lmortin@)ci.haypart,mn,us
Page 170 of 182
16
Oak Park Heights
Request for Council Action
Meeting Date October 14a', 2014
Time Required: 5 Minutes
Agenda Item Title: Consider the Issuan a uest for Bids--Council Meeting Rooms
Agenda Placement New Busin
Originating Department/Re e t Johnson City Administrator
Requester's Signature //P���
Action Requested Discus on Possible Action.
Background/Justificatio (Please indicate if any previous action has been taken or if other public
bodies have advised):
At a recent budget workshop,the City Council discussed the possibility of issuing an RFB (Request for
Bids)to remove the majority wall section between the two conference rooms directly adjacent to the City
Hall Council Chambers thus snaking that room larger for meetings and gathering.
If this is still an interest to the Council,the Council could direct staff to prepare that RFB and seek
relevant bids for work to be completed by mid-2015. Once those bids are received,the Council could
then make a decision on moving forward relative to time and costs.
Recall,that McGough Construction did graciously provide some approximate cost estimates and
alternates, see their enclosed data.. In essence wall removal and repairs would be+/- $20,004 while the
additional installation of a folding/accordion wall or partition would be an additional $22,000 -/-.
Page 171 of 182
P72P I of 9
Mas; MCGQUGH
B"tUing fer the Next Generation
City of oak Park Heights
Conference Room Remodeling
Architect: N/A Estimate By: JJ
Estimate: Budget Estimate Date: 08/26/14
" a
Walt Demolition and Patching: 000 0 i 16.966
RemovetJarkerboard 2 Ea 48.34 97
Demo Gypbcard!Stud Wall up to existing soffit 20 LF 95.90 1,918
Drywall patching .1 LS 1,307.19 1.307
Drywall*.ape&said 1 LS 2400.00 2.400
Painting-Entire inside of conference room 880 SF 1 75 1.540
Provide finished end o:^ex sling cabinet&countertop 1 LS 1.307.19 1,307
Patch carpet(with contrasting matena')&.vali base to match 1 LS 75000 750
Electrical: 1 Ailov. 3.000.00 3,000
Remove 2 TV Screens r Relocate 1 0.00 4
Remove 1 OH Pro'ecior 0.00 0
Relocate 1 AV Carmel&Cabling 0.00 0
Remove power vrinng from inside wall and terminate 0.00 0
Light Switching to Remain"a5-15" 000 0
Soffit Lighting to Remain"as-is" 0.00 0
000 0
000 0
Plumbing(Optional): 1 LS 1200.00 1,200 1.997
Remove pl.mbmg supply and waste stubbed cut of wall 0.00 0
Additional'A+ali Patching 1 LS 250.00 250
000 0
0.00 0
0 00 0
Movable Partition:(Based on 20'x9'high Soundmaster 8) 000 0 22,046
Provide Steel Support 1 LS 534-865 5.329
Frame and sheetrock at steel columns and beam 1 LS 2,078.64 2,079
Drywall tape&sand 1 LS 800.00 800
Painting 1 LS 400,00 400
!u!ovabla partition-Sound Vaster 8 fdiding partition, i LS 7,400 00 7,400
0.00 0
HVAC-No Work 0.00 0 0
Fire sprinklers-No Work coo 0 0
0 00 0
tr•
E44iscellaneeus Costs
Supervision&General Conditions 10% 29,776.24 2,978 Incl.
Permit 2.50°0 32.753.57 819 Incl.
General Liability Insurance 0.9500% 33572.72 319 Incl.
` ' ee•
Fees 81 Contingency
Design Contingency 0.00°,0 S000 $0 SO
Construction Contingency 10.00% S3,389.17 53,389 Incl.
Cl Fee 10.00% $3,728.08 $3.728 Intl-
° re; •t tl' te'
l° xr ,11., =ti11..11.1oio d11.E1t,.], Page 172 of 182
vtv.t,if .a 1151 v'+v]x t]... vv,roe • lfv, v 11VOf f'Sa>.f)6`Nhn to]11R.°0[]
,eucv„ i].o...carrOV Clv,mfr,scirripp fllo,�lx.4i•ASO.o .do°.f°l.gs4' r601.,1°.it4a ee.tic.vo.vae xas110
Pace 2 of 2
City of oak Park Heights
Conference Room Remodeling
Architect: N/A Estimate By: JJ
Estimate: Budget Estimate Date: 0&26/14
Y
B
Clarifications:
We assume the existing soffit on both sides of the wall to be removed is in alignment and will require patching only;
No removal and reconstruction of the existing soffit is included in base price.
Base pace includes 9'-0"high movable partition with steel supports installed below existing soffit
Scope of Work:
As listed above
Exclusions:
No revisons to existing soffit Ilghting
Alternates:
1 Conceal all steel support framing WtKn existing soffit, patch as required and provide Add $8,000
10'-0"high movable partition.
This assumes no interference from existing mechanical and electrical systems above ceiling.
2 Provide Acoustiseal 392 Movable Patition panels in lieu of Add $2,600
Soundmaster 8 acordian partition
Page 173 of 182
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Oak Park Hts
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3.1 INSTALLATION
A. General: Comply with partition manufacturer's written installation instructions, Drawings
and approved Shop Drawings.
B. Install partitions and accessories after other finishing operations, including painting have
been completed.
C. Defective partitions are not acceptable.
3.2 CLEANING AND PROTECTION
A. Clean partition surfaces upon completing installation of partitions to remove dust, dirt,
adhesives, and other foreign materials according to manufacturer's written instructions.
B. Provide final protection and maintain conditions in a manner acceptable to the
manufacturer and installer that insure partitions are without damage or deterioration at
time of Substantial Completion.
3.3 ADJUSTING
A. Adjust partitions to operate smoothly, easily, and quietly throughout entire operational
range. Lubricate hardware and other moving parts.
3.4 EXAMINATION
A. Examine flooring, structural support, and opening with Installer present, for compliance
with requirements for installation tolerances and other conditions affecting performance of
partitions. Proceed with installation only after unsatisfactory conditions have been
corrected.
3.5 DEMONSTRATION
A. Demonstrate proper operation and maintenance procedures to Owner's representative.
B. Provide Operation and Maintenance Manual to Owner's representative.
Page 174 of 182
Oak Park Hts
Unknown
PART 2 - PRODUCTS
2.1 MANUFACTURERS, PRODUCTS, AND OPERATION
A. Manufacturers: Subject to compliance with requirements, provide products by the
following:
1. Modernfold, Inc.
B. Products: Subject to compliance with the requirements, provide the following product:
1. OP-01: Soundmaster#8 Accordion Folding Partition
2.2 OPERATION
A. OP-01: Soundmaster#8: Manually operated, top supported, accordion folding.
2.3 CONSTRUCTION
A. OP-01: Shall consist of steel hinge plates welded to .18-inch (5mm) diameter vertical
steel rods, with a single row of plates at the bottom and top with intermediate rows at
approximately 42-inch (1067mm) on center. Partitions 10'-0" (3048mm) high or over have
a double row of hinge plates at the top. A high tensile alloy steel trolley yoke, functioning
as a hinge pin at required intervals, supports the frame assembly. Acoustical rating with
this construction:
1. 39 STC
2.4 PARTITION FINISHES
A. Finish: Factory applied, Class "A" rated material_ Finish shall be:
1. OP-01: Reinforced heavy duty vinyl with woven backing weighing not less than 30
ounces (850 grams) per lineal yard.
B. Partition Trim: Exposed black sweep strips.
2.5 SOUND SEALS
A. OP-01: Shall be pairs of three-layer flexible sweep strips at top and bottom. Vertical
Female sound channel shall by polyurethane foam lined.
B. OP-01: Sound Insulation: 24 gauge, V-grooved steel panels and heavy duty flame
resistant acoustical membrane. Each panel attaches to the frame with steel leaf
fasteners.
2.6 HARDWARE
A. Grip type hand pulls shall be die cast zinc, satin chrome finish. Extruded aluminum or
plastic hand pulls will not be accepted.
2.7 SUSPENSION SYSTEM
A. OP-01: #5 Suspension System, track and trolley sizes matched to the size of the
partition.
1. Suspension Tracks: Shall be continuous "C" channel shaped tracks, connected to
the structural support.
2. Carriers: The accordion folding partition shall be suspended from the track by two-
wheel intermediate and for-wheel lead trolley assemblies.
2.8 OPTIONS
A. OP-01: Pairs of Flexible Sweep Strips: Shall be provided at top and bottom of the
partition. Air release for air trapped within the folding partition shall be accomplished
during operation by a series of .38" (10mm) diameter holes through the lead post
molding.
PART 3 — EXECUTION
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Specification - Secion 08 35 13 (083513) Accordion Folding Doors
PART 1 - GENERAL
1.1 RELATED DOCUMENTS
A. Drawings and general provisions of the Contract including General and Supplementary
Conditions and Division 1 Specification Sections, apply to this Section.
1.2 SUMMARY
A. This Section includes the following:
1. Furnish and install accordion partitions as indicated in drawings.
B. Related Sections include the following:
1. Division 3 Sections for concrete tolerances required.
2_ Division 5 Sections for primary structural support, including pre-punching of
support members by structural steel supplier per partition supplier's template.
3. Division 6 Sections for wood framing and supports, and all blocking at head and
jambs as required
4. Division 9 Sections for wall and ceiling framing at head jambs.
1.3 QUALITY ASSURANCE
A. Installer Qualifications: An experienced installer who is certified by the partition
manufacturer, as qualified to install the manufacturer's partition systems for work similar
in material, design, and extent to that indicated for this Project.
B. Preparation of the opening shall conform to the dimensions specified, plumb, level, and in
accordance to building practices.
C. Acoustical Performance: Test partitions in an independent acoustical laboratory in
accordance with ASTM E90 to attain no less than the STC rating specified. Provide a
complete and unedited written test report by the testing laboratory upon request.
1.4 SUBMITTALS
A. Product Data: Material descriptions, construction details, finishes, installation details, and
operating instructions for each type of partition, component, and accessory specified.
B. Shop Drawings: Show location and extent of partitions. Include plans, elevations,
sections, details, attachments to other construction, and accessories. Indicate
dimensions, weights, conditions at openings, and at storage areas, and required
installation, storage, and operating clearances. Include location and installation
requirements for hardware and track, including floor tolerances required and direction of
travel. Indicate blocking to be provided by others.
C. Setting Drawings: Show imbedded items and cutouts required in other work, including
support beam punching template.
D. Samples: Color samples demonstrating full range of finishes available by architect.
1.5 DELIVERY, STORAGE, AND HANDLING
A. Clearly mark packages and partitions with numbering system used on Shop Drawings.
Do not use permanent markings on partitions
B. Protect partitions during delivery, storage, and handling to comply with manufacturer's
direction and as required to prevent damage.
1.6 WARRANTY
A. Provide written warranty by manufacturer of partitions agreeing to repair or replace any
components with manufacturing defects.
B. Warranty period: Two (2) years.
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A. Examine flooring, structural support, and opening, with Installer present, for compliance
with requirements for installation tolerances and other conditions affecting performance of
operable partitions. Proceed with installation only after unsatisfactory conditions have
been corrected.
3.5 DEMONSTRATION
A. Demonstrate proper operation and maintenance procedures to Owner's representative.
B. Provide Operation and Maintenance Manual to Owner's representative.
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A. Vertical Interlocking Sound Seals between panels: Roll-formed steel astragals, with
reversible tongue and groove configuration in each panel edge for universal panel
operation. Rigid plastic astragals or astragals in only one panel edge are not acceptable.
B. Horizontal Top Seals: Continuous contact extruded vinyl bulb shape with pairs of non-
contacting vinyl fingers to prevent distortion without the need for mechanically operated
parts.
C. Horizontal bottom floor seals shall be:
1. OP-02: Modernfold IA2 Bottom seal. Automatic operable seals providing nominal
2-inch (51 mm) operating clearance with an operating range of+0.50-inch (13mm)
to -1.50-inch (38mm) which automatically drop as panels are positioned, without
the need for tools or cranks.
2.6 SUSPENSION SYSTEM
A. OP-02: #17 Suspension System
1. Suspension Tracks: Minimum 11-gauge, 0.12-inch (3.04mm) roll-formed steel
track, suitable for either direct mounting to a wood header or supported by
adjustable steel hanger brackets, supporting the load-bearing surface of the track,
connected to structural support by pairs of 0.38-inch (10mm) diameter threaded
rods. Aluminum track is not acceptable.
a. Exposed track soffit: Steel, integral to track, and pre-painted off-white.
2. Carriers: One all-steel trolley with steel tired ball bearing wheels per panel (except
hinged panels). Non-steel tires are not acceptable.
2.7 OPTIONS
(NONE SELECTED)
PART 3: EXECUTION
3.1 INSTALLATION
A. General: Comply with ASTM E557, operable partition manufacturer's written installation
instructions, Drawings and approved Shop Drawings.
B. Install operable partitions and accessories after other finishing operations, including
painting have been completed.
C. Match operable partitions by installing panels from marked packages in numbered
sequence indicated on Shop Drawings,
D. Broken, cracked, chipped, deformed or unmatched panels are not acceptable.
3.2 CLEANING AND PROTECTION
A. Clean partition surfaces upon completing installation of operable partitions to remove
dust, dirt, adhesives, and other foreign materials according to manufacturer's written
instructions.
B. Provide final protection and maintain conditions in a manner acceptable to the
manufacturer and installer that insure operable partitions are without damage or
deterioration at time of Substantial Completion.
3.3 ADJUSTING
A. Adjust operable partitions to operate smoothly, easily, and quietly, free from binding,
warp, excessive deflection, distortion, nonalignment, misplacement, disruption, or
malfunction, throughout entire operational range. Lubricate hardware and other moving
parts.
3.4 EXAMINATION
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1.6 WARRANTY
A. Provide written warranty by manufacturer of operable partitions agreeing to repair or
replace any components with manufacturing defects.
B. Partition Warranty period: Two (2) years from date of shipment.
C. Suspension System Warranty: Five (5) years from date of shipment.
PART 2 - PRODUCTS
2.1 MANUFACTURERS, PRODUCTS, AND OPERATIONS
A. Manufacturers: Subject to compliance with requirements, provide products by the
following:
1. Modernfold, Inc.
B. Products: Subject to compliance with the requirements, provide the following product:
1. OP-02: Acousti-Seal #932 manually operated paired panel operable partition.
2.2 OPERATION
Al. OP-02: Acousti-Seal #932: Series of paired flat panels hinged together in pairs, manually
operated, top supported with operable floor seals.
B_ Final Closure:
1. OP-02: Horizontally expanding panel edge with removable crank
2.3 PANEL CONSTRUCTION
A. Nominal 3-inch (76mm) thick panels in manufacturer's standard 48-inch (1220mm)
widths. All panel horizontal and vertical framing members fabricated from minimum 18-
gage formed steel with overlapped and welded corners for rigidity. Top channel is
reinforced to support suspension system components. Frame is designed so that full
vertical edges of panels are of formed steel and provide concealed protection of the
edges of the panel skin.
B. Panel skin shall be:
1. OP-02: 0.50-inch (13mm) tackable 100% recycled moisture resistant gypsum
board, class "A" rated single material or composite layers continuously bonded to
panel frame. Acoustical ratings of panels with this construction minimum:
a. 47 STC
C. Hinges for Panels, Closure Panels, Pass Doors, and Pocket Doors shall be:
1. OP-02: Full leaf butt hinges, attached directly to the panel frame with welded
hinge anchor plates within panel to further support hinge mounting to frame.
Lifetime warranty on hinges. Hinges mounted into panel edge or vertical astragal
are not acceptable.
D. Panel Trim: No vertical or horizontal trim required or allowed on edges of panels; minimal
groove appearance at all panel joints.
E. Panel Weights:
1. OP-02: 47 STC - 7 lbs./square foot
2.4 PANEL FINISH
A. Panel finish shall be:
1. OP-02: Reinforced vinyl with woven backing weighing not less than 21 ounces
(595 grams) per lineal yard.
B. Panel Trim: Exposed panel trim of one consistent color:
1. OP-02: To Be Advised
2.5 SOUND SEALS
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Specification - Section 10 22 26 (10650) Operable Partitions Acousti-Seal®
PART 1: GENERAL
1.1 RELATED DOCUMENTS
A. Drawings and general provisions of the Contract including General and Supplementary
Conditions and Division 1 Specification Sections, apply to this Section.
1.2 SUMMARY
A. This Section includes the following:
1. Manually operated, paired panel operable partitions.
B. Related Sections include the following:
1. Division 3 Sections for concrete tolerances required.
2. Division 5 Sections for primary structural support, including pre-punching of
support members by structural steel supplier per operable partition supplier's
template.
3. Division 6 Sections for wood framing and supports, and all blocking at head and
jambs as required.
4. Division 9 Sections for wall and ceiling framing at head and jambs.
1.3 QUALITY ASSURANCE
A. Installer Qualifications: An experienced installer who is certified in writing by the operable
partition manufacturer, as qualified to install the manufacturer's partition systems for work
similar in material, design, and extent to that indicated for this Project.
B. Acoustical Performance: Test operable partitions in an independent acoustical laboratory
in accordance with ASTM E90 test procedure to attain no less than the STC rating
specified. Provide a complete and unedited written test report by the testing laboratory
upon request.
C. Preparation of the opening shall conform to the criteria set forth per ASTM E557
"Standard Practice for Architectural Application and Installation of Operable Partitions."
1.4 SUBMITTALS
A. Product Data: Material descriptions, construction details, finishes, installation details, and
operating instructions for each type of operable partition, component, and accessory
specified.
B. Shop Drawings:. Show location and extent of operable partitions. Include plans, sections,
details, attachments to other construction, and accessories. Indicate dimensions,
weights, conditions at openings, and at storage areas, and required installation, storage,
and operating clearances. Indicate location and installation requirements for hardware
and track, including floor tolerances required and direction of travel. Indicate blocking to
be provided by others.
C. Setting Drawings: Show imbedded items and cutouts required in other work, including
support beam punching template.
D. Samples: Color samples demonstrating full range of finishes available by architect.
Verification samples will be available in same thickness and material indicated for the
work.
1.5 DELIVERY, STORAGE, AND HANDLING
A. Clearly mark packages and panels with numbering systems used on Shop Drawings. Do
not use permanent markings on panels.
B. Protect panels during delivery, storage, and handling to comply with manufacturer's
direction and as required to prevent damage.
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Acousti-SeaIQ - Section 10 22 26 10650 Operable Partitions
Accordion - Section 08 35 13 (083513) Accordion Folding Partitions
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