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Home My WebLink AboutWk July 24, 2007 CITY OF NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER. MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US City Council Workshop Tuesday, July 24, 2007 Conference Rooms A & B 1. Call to Order - 6:00 p.m. 2. Anoka County Sheriffs Presentation 2008 Budget Proposal - Administration 3. Anoka County EDA Presentation- Karen Skepper - Administration 4. Prevailing Wage on Construction Projects Discussion - Administration 5. Subdivision Code (Street Width and Cul-de-sac Length) Discussion - Planning 6. TIF District 1-4 Industrial Opportunities Discussion - Administration/Planning 7. 2008-2012 CIP Progress Report -Administration 8. 2008 Budget Progress Report - Administration 9. 2007-2008 Council Goals Discussion -Administration 10. Other Business 11. Adjournment @ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: Anoka County Sheriffs 2008 Budget Proposal Presentation DATE: July 24, 2007 INTRODUCTION As indicated at the June 26th workshop, the Anoka County Sheriff will be present at the July 24th workshop to present their 2008 contract proposal. DISCUSSION The 2007 City of Andover Law Enforcement expenditure budget is $2,083,860.00 which is offset by a Police State Aid revenue budget of $91,592 and School Liaison revenue budget of $76,862.00 reflecting a net tax levy impact of $1,915,406. The current 2007 Sheriffs contract provides for 72 hours per day of patrol service (increasing to 80 hours July 1, 2007), 12 hours per day of service provided by a Community Service Officer, a School Liaison Officer in the middle school and high school, and 50% of the costs associated with the Crime Watch Program's coordinator position. The proposed 2008 Anoka County Sheriffs contract options are attached. The following outlines the attachments: Pgs. 2 - 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 City of Andover Budget Worksheets Sheriff s 2008 Proposal - Current Level Surnmary Sheriffs 2008 Proposal- Patrol Services Detail at Current Level Sheriff s 2008 Proposal - Crime Watch Coordinator Detail at current Level Sheriffs 2008 Proposal- Current Level with Additional Patrol Investigator Sheriffs 2008 Proposal- Proposed Patrol Investigator Detail Analysis of Patrol Staffing Requirements ACTION REOUESTED Receive a presentation from the Anoka County Sheriff and provide direction to City Staff on whether or not additional services should be added to the contract. - Attachments CITY OF ANDOVER Budget Worksheet - 2008 Function: Public Safety Police Protection - 42100 Account Actual Actual Actual Budget Estimate Requested Number Description 2004 2005 2006 2007 2007 2008 Professional Services 63010 Contractual Services 1,500,424 1,664,086 1,861,610 2,085,122 2,085,122 2,366,9]4 Professional Services 1,500,424 1,664,086 1,86],610 2,085,]22 2,085,]22 2,366,9]4 Total ],500,424 1,664,086 1,861,6]0 2,085,]22 2,085,122 2,366,9]4 @ 7/16/2007 City of Andov r Budget Detail for all Object Codes (List each expense account individually with specific cost detail) Department I Cost Center: Police Protection - 42100 Object Code 63010 Amount Requested Explanation CONTRACTUAL SERVICES Current levelcontractprClposal Addttion -Patrol Investigator 2007 Budget 2,085,122 o o 166,548 115,244 2008 Grand T olal for all Expendttures $2,085,122 $281,792 Page I of I Total 2008 Request 2,085,122 166,548 115,244 o o $2,366,914 @ Andover - Cost Summary January 2008 . December 2008 I. PERSONNEL. A. Sworn Deputy Sheriff 1.) 16.80 Patrol Deputies 2.) 7 Overtime (Average hours/month per Deputy) 3.) 2 Liaison Officers B. Non-Sworn C.S.O. Non-Sworn C.S.O. - Parks C. Crime Watch Coordinator 20 hours/week Benefits for Sworn and Non-Sworn Personnel Total Benefits TOTAL PERSONNEL COSTS II. VEHICLE A. Police Equipped Vehicles 4 Squads 4th squad pd. with prevo $ B. C.S.O. Vehicle 1 Vehicle C.S.O. Vehicle - Parks 1 Vehicle 1/2 Year C. Liaison Vehicle 2 Vehicle D. Crime Watch Coordinator Vehicle - 1/2 E. Total Maintenance Costs for all vehicles 1.) Vehicle 2.) Emergency & Communications Equipment 3.) Emergency Vehicle Equip. replc fee 4.) Insurance 5.) Cellular Telephone Total Maintenance Costs 153,440 18,936 2,000 16,005 2,400 TOTAL VEHICLE COSTS III. Administrative Costs & Crime Watch Program Costs Administrative, Clerical, Etc. IV. TOTAL COST TO CONTRACTING MUNICIPALITY *Less Amount Received From State for Police State Aid NET COST TO CONTRACTING MUNICIPALITY 1,009,882 61,176 120,224 63,510 7,540 22,516 490,924 "'i$"'.'}'." . ", '.',. .,', ." ,it,,":F157.:7t"" ~zsz:c,J~Jtl'A\,h;;:(~".t"I~,~~~l~j?j 75,000 7,200.00 3,600.00 14,400.00 2,750.00 192,781 ;l)~'C~i~~,~j,~g;f.:c ;;'i'i-'i$'.'''1'~'''O'.<i'd. '6. 'S.'."" .>i'<;";""",,',,,, .", ,,1.\>;. r-" ~6r;",'p~ '< /' ,; ~." /_-;~ ".;,,\':'\; .,-,,"..,,..",~.,e..>$.o,of<U~.Jir.'&=}.:t,.,,,_.,. $2,251,670 103,400 $2,148,270 -This figure is determined by the State and is subject to fluctuation. The latest estimate is $5,350 per Deputy. Revenue received is for previous year Deputy hours hired prior to July 1 Detail Attached @) Andover January 2008 - December 2008 Eighty Hour Cov rage Twelve Hours C.S.O. Park CSO Twenty Hours/Week - April Through September 365 DAYSNEAR 365 DA YSNEAR I. PERSONNEL A. Sworn Deputy Sheriff 1.) 16.80 Deputies at $5,009 /month 2.) 7 Overtime (Average hours/month per Deputy) 3.) 2 Liaison Officer B. Non-Sworn C.S.O. Non-Sworn C.S.O. - Parks C. Benefits for Sworn and Non-Sworn Personnel P.E.R.A. (Sworn) P.E.R.A. (Non-Sworn) FICA Medicare Severance Allowance Unemployment Compensation Life Insurance Health Insurance Dental Insurance Long Term Disability Insurance Worker's Compensation Uniforms Total Benefits TOTAL PERSONNEL COSTS II. VEHICLE A. Police Equipped Vehicles B. C.S.O. Vehicle C.S.O. Vehicle - Parks C. Liaison Vehicle D. Maintenance Costs 1.) Vehicle 2.) Emergency & Communications Equipment & replc.fee 3.) Emergency Vehicle Equipment replc. Fee 4.) Insurance 5.) Cellular Telephone Total Maintenance Costs 3 Squads 1 Vehicle 1 Vehicle 2 Vehicle 153,675 4,618 5,435 17,274 36,163 1,893 658 210,090 7,332 3,574 19,555 20,632 1/2 Year 4th squad pd. wnh prevo $ TOTAL VEHICLE COSTS III. Administrative Costs Administrative, Clerical, Etc. IV. TOTAL COST TO CONTRACTING MUNICIPALITY "Less Amount Received From State for Police State Aid NET COST TO CONTRACTING MUNICIPALITY 151,520 18,936 2,000 14,938 2,160 $1,009,882 61,176 120,224 63,510 7,540 480,900 '$. .. ,"'. ,,'. ,. f;'::.} '_ ;':\: . 'f\ :.,:f'~: "."J,;1f~;~~~~,?, 75,000 7,200.00 3,600.00 14,400.00 189,554 , ,$2!li;7.~~: .'.. $114'i23 :i.' ":.: "".."",,:l!,," _~, $2,207,308 103,400 $2,103,908 'This figure is determined by the State and is subject to fluctuation. The latest estimate is $5,500 per Deputy. Revenue received is for previous year Deputy hours hired prior to August 1 @ Andover January 2008 . December 2008 Crime Watch Coordinator Average 20 Hours/Per Week 260 DAYSIYEAR 1. PERSONNEL A. Civilian 1. } 1 Crime Watch Coordinator B. Benefits for Non-Sworn Personnel P.E.R.A. (Non-Sworn) FICA Severance Allowance Unemployment Compensation Life Insurance Health Insurance Dental Insurance Long Term Disability Insurance Worker's Compensation Uniforms Total Benefits TOTAL PERSONNEL COSTS II. VEHICLE A. Crime Watch Coordinator B. Maintenance Costs 1.} Vehicle . 2.} Cell Phone 3,} Insurance Total Maintenance Costs 1 Vehicle leased annually TOTAL VEHICLE COSTS III. Administrative Costs Administrative, Office Space, Office Supplies, Etc. IV. Program Costs V. TOTAL COST OF CRIME WATCH PROGRAM VI. CRIME WATCH PROGRAM City Of Andover 50 % NET COST TO CONTRACTING MUNICIPALITY CD 2,927 3,445 1,441 68 35 11,175 390 135 33 400 3,840 480 2,134 45,032 20,048 "';;, :t$'~~J9,~9 5,500 6,454 $88,723 $44,362 $44,362 Andover - Cost Summary January 2008 - December 2008 I. PERSONNEL A. Sworn Deputy Sheriff 1,) 16.80 Patrol Deputies 2.) 7 Overtime (Average hours/month per Deputy) 3.) 2 Liaison Officers 4.) 1 Patrol Investigator B. Non-Sworn C.S.O. Non-Sworn C.S.O. - Parks C. Crime Watch Coordinator 20 hours/week Benefits for Sworn and Non-Sworn Personnel Total Benefits TOTAL PERSONNEL COSTS II. VEHICLE A. Police Equipped Vehicles 4 Squads 4th squad pd. with prevo $ B. C.S.O. Vehicle 1 Vehicle C.S.O. Vehicle - Parks 1 Vehicle 1/2 Year C. Liaison Vehicle 2 Vehicle D. Crime Watch Coordinator Vehicle - 1/2 E. Patrol Investigator Vehicle F. Total Maintenance Costs for all vehicles 1.) Vehicle 2.) Emergency & Communications Equipment 3.) Emergency Vehicle Equip. replc fee 4.) Insurance 5.) Cellular Telephone Total Maintenance Costs 158,240 23,554 2,000 18,139 2,940 TOTAL VEHICLE COSTS III. Administrative Costs & Crime Watch Program Costs Administrative, Clerical, Etc. IV. TOTAL COST TO CONTRACTING MUNICIPALITY *Less Amount Received From State for Police State Aid NET COST TO CONTRACTING MUNICIPALITY 1,009,882 62,390 120,224 61,012 63,510 7,540 22,516 514,881 ; ....'.f;~fi..';i~$.4,; 75,000 7,200.00 3,600.00 14,400.00 2,750.00 8,350.00 204,873 ;;>?~.~~;1~;;"1Zt~.;:.. ;";;.;$.i8il~786'. ,k'_';;:- ;'~:"'~!: .lli;{JI~ b/.J!('~,,;s: :~'-ii: *g".:.0~-::" $2,366,913 103,400 $2,263,513 'This figure is determined by the State and is subject to fluctuation. The latest estimate is $5,500 per Deputy. Revenue received is for previous year Deputy hours hired prior to July 1 (]) Forty Hour Per Week Cov rage January 2008 - December 2008 Andover Patrol Investigator 260 DAYSIYEAR I. PERSONNEL A. Sworn Deputy Sheriff 1.) 1.00 Deputies at $5,009 /month 2.) 7 Overtime (Average hours/month per Deputy) 3.) Fill in vacation, days off, etc. B. Benefits for Sworn Personnel P.E.R.A. (Sworn) Medicare Severance Allowance Unemployment Compensation Life Insurance Health Insurance Dental Insurance Long Term Disability Insurance Worker's Compensation Uniforms Total Benefits TOTAL PERSONNEL COSTS II. VEHICLE A. Police Equipped Vehicles 1 Squads B. Maintenance Costs 1.) Vehicle 2.) Emergency & Communications Equip. & replc/maint fee 3.) Emergency Vehicle Equipment replc. Fee 4.) Insurance 5.) Cellular Telephone Total Maintenance Costs TOTAL VEHICLE COSTS III. Administrative Costs Administrative, Clerical, Etc. IV. TOTAL COST TO CONTRACTING MUNICIPALITY *Less Amount Received From State for Police State Aid NET COST TO CONTRACTING MUNICIPALITY 8,027 902 1,952 93 35 11,175 390 187 946 250 4,800 4,618 o 2,134 540 $61,012 1,214 o 23,957 i;'h,it86';ih~3;~ r~N;~~:::;',::f;~.!>".i..U",E.<"~'~~;;~;:S 8,350 12,092 ..,;,<i$.~."'.' . " t:~:;".;~,Ql4t~!t~ ~)~}~~I.~i~rt~~ $115,244 o $115,244 'This figure is determined by the State and is subject to fluctuation. The latest estimate is $5.500 per Deputy. Revenue received is for previous year Deputy hours hired prior to August 1 @) Analysis Of Patrol Staffing Requirements Andover 1. Community Generated Workload . Calls For Service . Handling time/CFS in hrs. (@34:18Actual) . Total CFS handling time in hrs. . Officer back-up rate (@1A - Est.) . Officer back-up time (back-up @75% of first unit time on scene) in hours. Number of bookings (Est.) . Booking time (Est. @ 0.75 hrs/booking) in hours . Number of reports . Report writing time (est. @ 30 minutes min. avg) in hours Total Time Required To Handle Community Generated Workloads (Hrs.) 2. Time for Preventative Patrol and Self Initiated Activities (((il Alternative levels of Proactivitvl, in Hours. . 50% of Available Time . 40% of Available Time 3. Total Time ReQuired To Handle Both Reactive and Proactive Activities (In Hrs.l . @ 50% of Available Time . @ 40% of Available Time 4. Officer Availabilitv Est. Availabilitv . Net shifts worked . Net hours lost on shift Net hours worked each year 5. Deputies ReQuired to Handle Workloads . @ 50% of Proactive Time . @ 40% of Proactive Time 6. Deputies ReQuired Given Est. Turnover and Time Needed to Academv and Field Train . @ 50% of Proactive Time . @ 40% of Proactive Time Based on 2006 Calls for Service 12,806.00 * 0.57 7,295.15 0040 2,188.55 218.00 * 163.50 12,806.00 * 6403 16,050.20 10,700.13 32,100.39 26,750.33 2,080 362 1,718 18.68 15.57 @ @ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923. WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator. SUBJECT: Anoka County (EDA) Presentation - Karen Skepper DATE: July 24, 2007 INTRODUCTION Recently the Anoka County Board (June 12, 2007), pursuant to Minnesota State Statute 469.1082, granted to the Anoka County Housing and Redevelopment Authority all of the powers of an economic development authority under Minnesota State Statute sections 469.090 - 469.1082. DISCUSSION With the granting of this authority to the Anoka County Housing and Redevelopment Authority, the statute is clear that cities and townships have the option to participate in the economic development program. To explain how the Anoka County Housing and Redevelopment Authority will work with the added economic development powers. Karen Skepper will be present at the meeting to discuss. Attached is a letter from Anoka County Board Chair Dennis Berg and the exploratory task force report that was presented to the County Board. Also attached are the various State Statutes referenced above. ACTION REQUESTED Receive a presentation from Karen Skepper and provide direction to City Staff on whether or not the Council has interest in participating in the Anoka County Housing and Redevelopment Authority economic development activities. .. Attachments COUNTY OF ANOKA OFFICE OF COUNTY BOARD OF COMMISSIONERS GOVERNMENT CENTER 2100 3RD AVENUE. ANOKA, MINNESOTA 55303-2265 (763) 323-5700 June 6, 2007 DENNIS D. BERG - CHAIR County Board of Commissioners Mr. Jim Dickinson City Administrator, City of Andover 1685 Crosstown Blvd. NW Andover, MN 55304 Dear Mr. Dickinson: On behalf of the Anoka County Board of Commissioners, I would like to thank you for the information you have provided regarding the economic development activities taking place within your community. The information was compiled and used as the foundation of a gaps analysis conducted by the Economic Development Exploratory Committee. Anoka County retained the services of Springsted, Incorporated to lead discussions, conduct a community survey, and prepare a final report based upon the findings of the committee. Enclosed you will find a copy of the report and the recoriunendations made by the economic development exploratory committee. The report was presented to the Anoka County Board of Commissioners on May 12,2007. The committee has recommended that the County Board consider granting economic development powers to the Anoka County Housing and Redevelopment Authority. The statute is clear that cities and townships have the option to participate in the economic development program. To explain how the Housing and Redevelopment Authority will work with the added economic development powers commissioners, staff and exploratory committee members would like the opportunity to talk with your city council members at a work session or council meeting. Karen Skepper, Anoka County Community Development Manager, will be contacting you to schedule a meeting. A public heanng will be held on June 12, 2007, at 10:30 a.m, on a proposed resolution to add economic development authority responsibilities to the Anoka County Housing and Redevelopment Authority. A copy of the public hearing notice has been attached for your reference. Again, thank you for your assistance with this project. Sincerely, f),J p^ . -I; 19. ~ Dennis D. Berg, Chair Anoka County Board of Commissioners DB:cmh Enclosures FAX: 763-323-5682 Affirmative Action I Equal Opportunity Emp]oyer TDD/TTY: 763-323-5289 ~ '.~~, NOTICE OF PUBLIC HEARING ON PROPOSED RESOLUTION ADDING ECONOMIC DEVELOPMENT AUTHORITY RESPONSffiILITIES TO THE ANOKA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY NOTICE IS HEREBY GIVEN that the Anoka County Board of Commissioners, as the governing body of Anoka County, Minnesota, (the "County"), will meet on June 12,2007, at 10:30 a.m., at the Government Center, 2100 3rd Avenue, Anoka, Minnesota, for the purpose of conducting a public hearing on a proposed resolution adding economic development responsibility as defined in Minnesota Statutes Section 469.090 to 469.1082 to the clirrent services provided by the Anoka County Housing and Redevelopment Authority (ACHRA). Following the public hearing, the Anoka County Board of Commissioners will consider a resolution, which if adopted, will authorize the ACHRA to engage in economic development activities in addition to housing and redevelopment responsibilities. A draft copy of the resolution is available for public inspection at the Anoka County Administrator's Office, Anoka County Government Center, 7th Floor, 2100 3rd Avenue, Anoka, Minnesota 55303. All interested persons may appear and be heard at the time and place set forth above. Persons who wish to testify at the public hearing are requested to contact Karen Skepper at Anoka County Community Development, 2100 Third A venue, Seventh Floor, Anoka, Minnesota; Telephone: (763) 323-5709; MN Relay Service: 1-800-627-3529; Fax: (763) 323- 5682, prior to 4:30 p.m. Monday, June 11, 2007. If you require special accommodations, please contact Community Development Department at least a week before the hearing. Is! Anthony C. Palumbo Assistant County Attorney Is! Tim Yantos ACHRA Executive Director Publish: Anoka County Union June 1 and 8, 2007 (J) Report of the Anoka County Economic Development Exploratory Committee Anoka County, Minnesota May 8, 2007 G) Table of Contents LETTER OF TRANSMmAL 1 EXECUTIVE SUMMARy............... ....................................... ........... .....2 2 INTRODUCTION ... ............................... ........ ......... ......................... ....5 3 METHODOLOGy..................... ................. ............................... .......... 7 4 RNDINGS.........................................................................................9 5 INVENTORY AND GAP ANALYSIS ......................................................14 6 ORGANIZA nONAL OPTIONS ............................................................ 15 7 RECOMMENDA nONS ................. ................. ........ ............................17 MINNESOTA STATUTE 469.1082 ...................................................APPENDlX I METROPOLITAN COUNCIL DEMOGRAPHIC PROJECTIONS............ APPENDIX II COMMITTEE VISIONING RESPONSES......................................... APPENDIX III LOCAL GOVERNMENT INVENTORY QUESnONNAIRE.................. APPENDIX IV Mission Statement Springsted provides high quality, independent financial and management advisory services to public and non-profit organizations, and works with them in the long-tenn process of building their communities on a fiscally sound and well-managed basis. & I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I g~,;:~ t d ~',' ~~ ~] Springs e Springsted Incorporated 380 Jackson Street, Sune 300 Saint Paul, MN 55101.2887 Tel: 651-223-3000 Fax: 651.223-3002 www.springsted.com LETTER OF TRANSMITTAL May 8, 2007 Anoka County Board of Commissioners Government Center 2100 3rd Avenue Anoka, MN 55303 Dear Commissioners: On behalf of the Anoka County Economic Development Exploratory Committee, we are pleased to transmit this report documenting the Committee's inventory of existing programs and services, its identification of program and service gaps, and its recommendation that the County Board extend the power of the Anoka County lIRA to operate as an EDA . The Committee also recommends that the County Board authorize legal research to clarify the levy authority that can be exercised by the Anoka County lIRA operating with statutory EDA powers to determine the maximum rate that can be levied and the manner in which the levy can be allocated for lIRA and EDA purposes. It also recommends that the County Board consider the appropriate.number of governing board members serving on the Anoka County lIRA operating with statutory EDA powers, recognizing that statutes allow a county EDA to have nine members. In submitting this report for the Board's consideration, we want to thank the Committee members who participated in the inventory and analysis of economic development information and evaluated the organizational options available for the County's involvement in economic development We also want to thank all of the cities and townships that supplied data for the Committee's review. Finally we want to express our appreciation to the Anoka County staff that provided us with previously conducted research on economic development. We have appreciated working with the County on this imPortant study and look forward to future opportunities to be of service. Respectfully submitted, Sharon G. Klumpp, Vice President Consultant maj @ Public Sector Advisors Executive Summary 1. Executive Summary 2 In December 2006, the Anoka County. Board of Commissioners appointed an II-member Economic Development Exploratory Committee to review current economic development, housing and community development programs in the County, to identify gaps in the level of existing services provided, to assess the capacity of existing agencies to expand their services to fulfill these needs, and to formulate a recommendation on the need for a County economic development organization. The committee completed an inventory and gap analysis based on information collected through community surveys and other available background material, studied the four statutory organizational options available for County involvement in economic development, . and issues this report and its recommendations in accordance with Minnesota Statutes Section 469.1082. Findings made by the committee include: 1. Anoka County is forecast to experience continuing growth through 2030. 2. Three distinct development patterns exist in Anoka County: fully developed areas, developing areas and rural areas. More than one development pattern may exist in a single community. 3. 10 of the 21 Anoka County communities surveyed have a city Economic Development Authority (BDA). 4. Tax base growth and job creation are major themes that emerged from the committee's review of responses to the Local Government Inventory Questionnaire. 5. Transportation improvements and major development projects top the list of major economic development goals which Anoka County communities hope will make headlines in the next 10 years. 6. Staffing and funding are the most frequently cited challenges to economic development encountered by Anoka County communities. Nine gaps in the level of economic development services were identified: 1. Ability to buy property with the change in eminent domain laws. 2. Limited financial resources dedicated to economic development activities. W" Report 01 the Anoka County Economic Development Exploratory Committee Executive Summary 3 3. Lack of staff dedicated to economic development activities who have the expertise and knowledge of economic development tools 4. Organizational structure for sharing information and coordinating communications among Anoka County and its cities and townships. 5. Better image of the County and a coordinated approach to "branding:' 6. Feasibility study of fiber optics and other technological infrastructure and a coordinated approach to technology development. 7. Availability of up-to-date demographic data and projections. 8. Central point of contact for businesses considering locating or expanding in Anoka County; better understanding of relationship between economic development and redevelopment subsidies and job gains and losses. I I I I I I I I I I I I I I I I I I I I 9. Ability to provide economic development services to communities that do not have an EDA. The committee determined that Anoka County involvement in economic development was desirable, citing the number of communities that do not have an organizational structure for economic development and the efficiency and effectiveness of a regional approach. Committee members also recognized the ability of a County economic development organization to serve as a central information clearinghouse for all Anoka County communities. The committee recommends that the Anoka County Housing Redevelopment Authority (lIRA) be authorized to operate as an EDA, citing greater administrative efficiency and effectiveness to administer a single economic development organization compared to administering both a County HRA and EDA. In making this recommendation, the committee noted that none of the Anoka County general government subdivisions exercises extraterritorial planning powers beyond its boundaries. Minnesota Statutes Section 469.1082 subdivision 3 specifically requires the committee to identify the distance that a city controls beyond its boundaries, if applicable. This provision is not applicable to Anoka County. The committee also recommends that the County authorize legal research to clarify questions regarding the levy authority that can be exercised by the Anoka County HRA operating with statutory EDA powers to determine the maximum rate that can be levied and the manner in which the levy can be allocated for HRA and EDA purposes. Committee members advise that this information will be important to each community's deliberations regarding participation in the Anoka County HRA operating as an EDA. @ Report of the Anoka County Economic Development Exploratol}' Committee Executive Summary I I I I I I I I I I I I I I I I I I I I I I I [ I 4 Finally, the committee recommends that the County Board -consider the appropriate size of the County lIRA's governing board if it is authorized by the County Board to operate as an EDA, noting that Minnesota Statutes Section 469.1082 Subdivision 8 permits a county economic development authority to have a nine-member board. @) Report of 1he Anoka County Economic Development Exploratory Commillee Introduction 5 2. Introduction The Anoka County Board of Commissioners appointed an ll-member Economic Development Exploratory Committee in December 2006 to: . Review economic development activities conducted throughout the County, and . Identify economic development services the County could provide to communities. I I I I I I I I I I I I I I I I I I I I I I I I Under Minnesota Statutes Section 469.1082 (see Appendix A), appointment of the local committee is the first step that counties must take when considering the establishment of a county Economic Development Authority (EDA) or extending EDA powers to a county Housing and Redevelopment Authority (HRA). Subdivision 3 of this section requires the committee to issue a report within 90 days of its initial meeting recommending the preferred organizational option for a county economic development service provider. Specifically, the committee's report must contain: . Written findings on issues considered by the committee, including identification of the current level of economic development, housing, and community development programs and services provided by existing agencies, any existing gaps in programs and services and the capacity and ability of those agencies to expand their activities; and . The recommended organizational option for providing needed economic development, housing and community development services in the most efficient, effective manner. Subdivision 4 limits the organizational options the committee may recommend to: 1. A county EDA operating under Minnesota Statutes Section 469.090 to 469.1081; 2. Allowing the existing county HRA to operate as an EDA under Minnesota Statutes Sections 469.090 to 469.1081; 3. Pursuing special legislation; or 4. Maintaining the existing structure. The Anoka County Board of Commissioners appointed members to the Economic Development Exploratory Committee from among those individuals nominated by cities and townships. Consistent with the requirements of Subdivision 2, political subdivision representatives selected by their local government constituted more than 50 percent of the total committee membership, and included at least one city official, at least one HRA official, and at least one township official. Two Anoka County Commissioners also served on the committee. Statutes limited the size of the committee to 11 to 15 members. @ Report of 1I1e Anoka County Economic Development Exploratory Committee Introduction 6 Members of the Anoka County Economic Development Exploratory Committee are: . . Greg Hunter, Mayor, East Bethel " . Jim Scheffler, Supervisor, Burns Township -:. . Steve Billings, member, Fridley Housing and Redevelopment Authority ". Ron Wood, City Manager, Blaine '. Marc Nevinski, Community Development Manager, Coon Rapids .. Nancy Braastad, President, Ham Lake Develoment Company · Patricia Preiner, EDC Chair, Columbus . Herm Talle, Alternate, Attorney, Barna Guzy & Steffen . Dan Erhart, Commissioner, Anoka County . Dennis Berg, Commissioner, Anoka County " . Paul McCarron, Chair, Anoka County Housing and Redevelopment Authority . Don Findell, member, Anoka County Housing and Redevelopment Authority Paul McCarron was elected to serve as the chair of the Economic Development Exploratory Committee. The committee completed its work in four meetings held on February 7,2007; March 14,2007; April 4; 2007 and April 25, 2007. This report, which details the committee's findings and its recommendation, is being submitted to the Anoka County Board of Commissioners for its consideration on May 8, 2007. @ Report of the Anoka County Economic Development Exploratory Committee I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Methodology 7 3. Methodology The Economic Development Exploratory Committee received an overview of Minnesota Statutes Section 469.1082 at its February 7, 2007 meeting. In addition to reviewing the statutory requirements of the committee's charge, members received an overview of a county economic development service provider's area of operation as defined by Subdivisions 5, 6, and 7 explaining that: · Cities may adopt a resolution electing to participate in a county economic development organization. · Cities may adopt a resolution electing to withdraw participation, provided that the withdrawal election may be made every fifth year following adoption of the resolution electing participation in the county economic development organization and that the city retains any rights, obligations, and liabilities it obtained or incurred during its participation. · Cities may adopt a resolution prohibiting the county economic development organization from operating within its boundaries, which has the effect of excluding the city's property taxpayers from the property tax levied by the county economic development organization. · Existing city EDAs will continue to operate if a county economic development organization is established. · Additional city EDAs may be established within the operating area of a county economic development organization without the explicit concurrence of the county economic development organization. · Existing city and county HRAs may continue to operate if a county economic development organization is established. The following background materials were distributed to committee members at the February 7, 2007 meeting: · Demographic forecasts prepared by the Metropolitan Council showing anticipated population, household, and employment trends in 2010, 2020, and 2030; · Working Together to Shape the Future of Anoka County, a draft report of the Anoka County Development Investment Strategy Work Group, dated September 24, 2002 · Anoka County Industry and W orkforces Trends, a PowerPoint presentation by Jerry Vitzthurn, not dated · EDA Survey conducted by the Anoka County HRA, EDA Interview Summary, and Preliminary Lessons Learned from Interviewing Experts on the Role of Counties in Economic Development, dated January 3, 2005. · County Economic Development Authorities, a PowerPoint presentation by Gene Goddard of the Minnesota Department of Trade and Economic Development, not dated. @ Report of the Anoka County Economic Development Exploratory Committee Methodoloav 8 In order to reflect a County-wide perspective in its work, committee members exchanged information on current economic development activities in their respective communities and identified broad economic development goals having County-wide significance (Appendix C). They also participated in the design and dissemination of the Local Government Inventory Questionnaire used to gather data on economic development activities and needs from each city and township (Appendix D). At the committee's request, the chief elected official and chief administrative officer of each city and township received a letter explaining the committee's charge and asking for their assistance in completing the Local Government Inventory Questionnaire. City and township representatives were also informed of the dates and times of future committee meetings. Eighteen of the 21 communities completed the Local Government Inventory Questionnaire. The committee used this information to identify economic development, housing, and community development needs and determine gaps in programs and services. The committee also requested that two interviews be conducted with individuals knowledgeable about economic development activities in Anoka County: Jerry Vitzthum, Director of the Anoka County Workforce Center, and Dave Piggot, Executive Director of the Anoka County Economic Development Partnership. @ Report of 1he Anoka County Economic Development Exploratory Committee Findings. 9 4. Findings 1. Anoka County is forecast to experience continuing growth through 2030. The Metropolitan Council estimated Anoka County's 2005 population at 326,393 and its number of households at 117,409. An employment estimate prepared by the Minnesota Department of Employment and Economic Development put the number of individuals working in Anoka County at 113,449 in 2004. Forecasts prepared by the Metropolitan Council project continued growth in Anoka County through 2020 and 2030 as shown below: I I I I I I I I I I I I I I I I I I I I t I I 326,393 117,409 Em 10 ent* 113,449 138,060 *Employment estimate is for 2004 Source: Metropolitan Council 2. Three distinct development patterns exist in Anoka County. A variety of development patterns exist in Anoka County. Fully developed areas, found in the southern portion of the County, emphasize housing rehabilitation and redevelopment as well as commercial-industrial redevelopment. Redevelopment efforts are typically accompanied by reconstruction of infrastructure to accommodate the needs of redevelopment projects. Developing areas include the suburban areas of the County where new residential growth is occurring and retail development is responding to the growing population. Generally, developing communities are involved in expanding infrastructure to accommodate growth. In rural areas, the emphasis is on maintaining rural characteristics and making business opportunities available in rural centers or along major County roads. In most rural areas, the lack of infrastructure, particularly water and sanitary sewer, limits the density of new development Economic development expertise, tools and resources needed to support these three distinct development patterns will vary. Multiple development patterns may be present in a single community. @ Report of the Anoka County Economic Development Exploratory Committee Findings 10 3. 10 of the 21 Anoka County communities surveyed have a City EDA. Based on information gathered from the Local Government Inventory Questionnaire, ten communities have established city EDAs. The table below shows the economic EDAs and HRAs in existence in Anoka County and also indicates those communities where an economic development committee (EDC) or a port authority (PORT) are in operation: Andover X X Anoka X EDC Bethel Blaine X X BumsT Centerville X Circle Pines X Columbia Heights X X Columbus EDC Coon Rapids X X East Bethel Fridley X Ham Lake X Lexington Linwood Tw . Lino Lakes X X EDC Oak Grove X Ramsey X X PORT St. Francis S rin Lake Park X Source: Local Government Inventory Questionnaire (2007) 4. Tax base growth and job creation are major themes that emerged from the committee's review of responses to the Local Government Inventory Questionnaire. Two major themes dominated discussions about economic development activities: tax base growth and job creation. The County and its communities want to expand the existing tax base by attracting new businesses and retaining businesses located in Anoka County. In addition to creating a larger property tax base, business growth and retention will create more jobs. Data compiled by the Anoka County Workforce Center reported that 59% of Anoka County workers left the County .daily to go to their places of employment. Moreover, Anoka County residents had the greatest travel distances and longest commuting times relative to the rest of the metro area, according to the draft Anoka County DeveloplJ1ent Investment Strategy Report, dated September 24, 2002. @ Report of the Anoka County Economic Development Exploratory Committee I i I i I i I I I I I I I I I I I I I I I I I I I I I I I I I I Findings 11 5. Transportation improvements and major development projects top the fist of major economic development goals which Anoka County commnnities hope will make headlines in the next 10 years. The Local Government Inventory Questionnaire asked communities to indicate the economic development success stories that will make local, county or regional headlines in 2017. While specific community goals varied, the focus of the responding communities included: a. Major transportation projects b. Major development projects, including transit-oriented development (TOD) near transit stations c. Infrastructure in developing areas of the County d. Redevelopment in fully developed areas of the County e. Fiber optics and other communications infrastructure f. Housing redevelopment and rehabilitation g. Job creation Communities reported. that they expected to focus on transportation and redevelopment projects over the next 10 years. They also expect to devote significant time to property acquisition, promoting commercial and industrial development opportunities, marketing, and infrastructure development. 6. Staffing and funding are the most frequently cited challenges to . economic development encountered by Anoka County conunnnities. Anoka County communities considered the availability of staff and funding to be the most significant challenge affecting their capacity to undertake economic development activities, according to questionnaire respondents;. Communities cited staffing as a challenge noting the extensive knowledge and breadth of expertise required to apply economic development tools and resources. Questionnaire respondents indicated that County-wide, a total of 8.6 full-time equivalent staff are dedicated to economic development and housing activities; indicating that staffing is an issue involving the number of staff and their skill levels. Communities were asked to identify the types of economic development tools they have used as well as tools they would consider using or would not use. Their responses are shown on the following page. @ Report 01 the Anoka County Economic Development Exploratory Committee Rndings I I I I I I I I I I I 12 Community Development Block Grants 14 4 Contamination Cleanup and Investigation Grant Program 6 8 EDA or lIRA 11 5 Economic Development Fund 5 9 Eminent Domain 8 6 Livable Communities Grant 9 6 Minnesota Investment Fund 3 11 Redevelopment Grant 6 11 Revolving Loan FundlJnterest Buy Down Programs 5 10 Special Assessment 10 7 Special Service District 2 11 Tax Abatement 7 7 Tax-Exempt Financing 8 6 TlF - Redevelopment District 13 2 TIF - Renewal and Renovation District 4 8 TlF - Housing District 7 5 TIF - Economic Development District 7 6 Business Retention Program 5 8 Locality Marketing Plan 5 8 Workforce Training Plan 3 8 Business Incubator Program 1 8 Job Skills Partnership Act 1 10 Source: Local Government Inventory Questionnaire (2007) 1 1 1 1 1 2 1 Many communities also reported funding as a major challenge, noting the limited availability of funding to cover the costs of economic development programs and services. Communities were asked to provide information on their levies for economic development and housing activities. The communities that levy for EDA and/or lIRA activities are listed below: x x X X X x X Source: Local Government Inventory Questionnaire (2007) @ Report of the Anoka County Economic Development Exploratory Committee I i I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Findings 13 Other challenges to economic development cited by the responding communities included: a. The marketability of projects as development/redevelopment costs mcrease b. Anoka County's need for a marketing identity that will help it attract development c. The ability to assemble property with the loss of eminent domain d. Aging infrastructure e. In rural areas, balancing the non-residential tax base with maintaining a rural lifestyle. (j) Report of lbe Anoka County Economic Development Exploratory Committee Inventory and Gap Analysis 14 5. Inventory and Gap Analysis After reviewing these findings, the Economic Development Exploratory Committee created a list of economic development needs, identifying where existing gaps in services and programs are not adequate to meet future needs. The table below reflects the committee's discussion of the inventory and gap analysis at its March 14 and April 4, 2007 meetings. ~-'~!i~,:{I;:t:~~lwo/$1~~):~~~~J~~~gr~t!ieeas~~~tJFL~~~~~~~ ~t.~I~}!f~Br&a~T%i~~i~\~~fG8ps~~Wi$~~1f~?~~~(f1~rl~(~;t~!'~:~1;.~~:-! 1. Assemble, acquire developable property Ability to buy property with the change in and property needed for rights of way eminent domain laws 2. Financial resources to support Limited financial resources dedicated to development and redevelooment oroiects economic develooment activities 3. Familiarity with the use and application Lack of staff dedicated to economic of economic development tools development activities who have the expertise and knowled~e of economic development tools 4. More communication and coordination on Organizational structure for sharing activities associated with economic information and coordinating communications development/redevelopment activities among Anoka County and its cities and townshios 5. Outdated image of Anoka County Better image of the County and a coordinated approach to "brandin~" 6. Infrastructure for technology Feasibility study of fiber optics and other technological infrastructure and a coordinated aooroach to technology develooment . 7. Better information to support economic Availability of up-to-date demographic data development and redevelopment activities and proiections 8. Increased job opportunities for County Central point of contact for businesses residents considering locating or expanding in Anoka County; better understanding of relationship between economic development and redevelopment subsidies and job gains and losses. 9. Anoka County lIRA limited to housing Ability to provide economic development activities as defined by statute services to communities that do not have an EDA @ Report of the Anoka County Economic Development Exploratory Committee Organizational Options 6. Organizational Options 15 Minnesota Statutes Section 469.1082 Subdivision 4 identifies four organizational options that may be recommended by a local committee formed to consider the need for a county EDA or a county HRA operating with EDA powers. These four options are listed below: 1. Establishing a county EDA operating under Minnesota Statutes Section 469.090 to 469.1081; 2. Allowing the existing county HRA to operate as an EDA under Minnesota Statutes Sections 469.090 to 469.1081; 3. Pursuing special legislation; or 4. Maintaining the existing structure. Based on its findings and the results of the inventory and gap analysis, the committee determined that Anoka County involvement in economic development was desirable. Reasons given for supporting an economic development role for the County included: · Recognition that half of Anoka County's communities have not created an organizational structure to administer economic development, housing and community development programs · Interest in promoting efficiency and effectiveness by not making it necessary for every Anoka County community to create its own EDA or HRA · The ability of a County economic development organization to serve as a central information clearinghouse. The committee focused its discussion on. two options: establishing a county EDA or extending the power to operate as an EDA to the Anoka County HRA. The evaluation of the options can be summarized as follows: 1. Authorizing the Anoka County BRA to operate as an EDA would provide a mechanism for the County's iuvolvement in economic development without requiring the establishment of a new entity. Certain economies could be realized by extending EDA operating authority to the Anoka County HRA. Administration of a single economic development organization would promote greater administrative efficiency and effectiveness whereas the creation of a separate County EDA would entail increased administrative detail as well as coordination with the Anoka County HRA. As required by Minnesota Statutes 469.1082, the committee must specify the distance that a city controls beyond its boundaries, if applicable. The committee found that none of the County's general government subdivisions exercises planning and development control beyond its boundaries and that this statutory provision is not applicable to Anoka County. @ Report of the Anoka County Economic Development Explomtory Committee Organizational Options 16 2. Each Anoka County community must be assured that it could elect to participate or to withdraw its participation with either organizational option. The committee recognizes that County involvement in economic development could have a direct benefit to communities that have not established an EDA as well as a County-wide benefit, to the extent that the efforts of an EDA or an HRA with authority to exercise EDA powers could result in an increase in the County's property tax base. Committee members also recognize that supporting an organizational option that would increase the County's involvement in economic development would not obligate their community's participation in a County EDA or the Anoka County HRA operating with EDA powers. Rather, a community's decision whether to participate would require a resolution adopted by the community's governing body. A representative of the Anoka County Attorney's Office orally advised committee members that Minnesota Statutes Section 469.1082 provides for local determination for cities to participate in a county economic development organization, regardless of whether the county establishes an EDA or extends EDA operating powers to the existing HRA. Moreover, state law does not preclude a city's ability to form an EDA and provides a mechanism for these communities that want to establish an HRA on the operating area of a county HRA. 3. Anoka County communities will need information on how the levy will be determined and how revenues win be allocated between housing and economic development activities. In evaluating the need for an increased County role in economic development, committee members emphasize the importance that some city councils and township boards might place on local levy implications, in considering participation in a County HRA operating with EDA powers. They advise the County to research and develop information explaining the maximum levy authority of the County HRA exercising EDA powers and how revenues would be allocated between housing and economic development activities. Four possibilities exist for community participation in a County HRA exercising EDA powers: . Participation in both County HRA and EDA functions . Participation in the County HRA function but not in the EDA function . Participation in the County EDA function but not in the County HRA function . No participation in either function. Communities will find it helpful to know how the levy will be determined and how revenues will be allocated in considering which of the above options is in its best interests. @ Report of the Anoka County Economic Development Exploratory Committee I i I I I j I I I II I II I I I I II . I I . . I . I I I I I I I I Recommendations 17 7. Recommendations Based on its review of the current level of economic development, housing, and community development programs and services provided by existing agencies, existing gaps in programs and services, and the capacity and ability of existing agencies to expand their activities; the Anoka County Economic Development Exploratory Committee submits these recommendations to the Anoka County Board of Commissioners for its consideration: Recommendation 1: Authorize the Anoka County HRA to operate as an EDA under Minnesota Statutes Sections 469.090 to 469.1081, noting that none of the County's general government subdivisions exercises planning and development control beyond its boundaries. Minnesota Statutes Section 469.1082 subdivision 3 specifically requires the committee to identify the distance that a city controls beyond its boundaries, if applicable. This statutory provision is not applicable to Anoka County. Recommendation 2: Authorize legal research to clarify questions regarding the levy authority that can be exercised by the Anoka County HRA operating with statutory EDA powers to determine the maximum rate that can be levied and the manner in which the levy can be allocated for HRA and EDA purposes. Recommendation 3: Consider the appropriate size of the County HRA's governing board if it is authorized by the County Board to operate as an EDA, noting that Minnesota Statutes Section 469.1082 Subdivision 8 permits a county economic development authority to have a nine-member board. @ Report of \he Anoka County Economic Development Exploratory Committee APPENDIX I Minnesota Statute 469.1082 @ 469.1082, Minnesota Statutes 2006 Copyright @ 2006 by the Office of Revisor of Statutes, State of Minnesota. 469.1082 COUNTY EDA OR HRA With EDA POWERS IN NONMETRO COUNTY. Subdivision 1. Authority to create. A county may form a county economic development authority or grant a housing and redevelopment authority the powers specified in subdivision 4, clause (2), if it receives a recommendation to do so from a committee formed under subdivision 2. An economic development authority established under this section has all the powers and rights of an authority under sections 469.090 to 469.1081, except the authority granted under section 469.094 if so limited under subdivision 4. This sect is in addition to any other authority to create a county economic development authority or service provider. Nothing in this section shall alter or impair any grant of powers, or any other authority granted to a community development agency, a county housing and redevelopment authority, or any county as provided in section 383DAl; Laws 1974, chapter 473, as amended; or Laws 1980, chapter 482, as amended. Any county that has granted economic development powers to a community development agency or a county housing and redevelopment authority under any of these provisions may not form a county economic development authority or grant a housing and redevelopment authority the powers . specified in subdivision 4, clause (2). Subd. 2. Local committees. Upon notice to all local government units and development agencies within the countY, a county may adopt a resolution to create a committee to recommend options for a county. economic development service provider. . The committee shall consist of no fewer than 11 and no more than 15 members appointed by the county board. At least one city official, at least one housing and redevelopment official, and at least one. township official from the county to be served by the county economic service provider shall be included on. .the committee. Members may also represent school districts, political subdivisions that currently provide services under sections 469.001 and 469.047 and 469.090 to 469.1081, nonprofit or for-profit. housing and economic development organizations, business, and labor organizations located within the county. Political subdivision representatives must be selected by their local governments and must constitute at least 50 percent of the total committee membership. The county may appoint no more than two county commissioners. The committee shall select a chair at its initial meeting. Subd. 3. Committee report. The committee shall issue its report within 90 days of its initial meeting. The committee may request one 6O-day extension from the county board. The report must contain the committee's recommendation for the preferred organizational option for a county economic development service provider, including the distance from the boundary of the city that may be controlled by each affected city in subdivision 5. The distance may not exceed two miles from the city boundary. The report must contain written findings on issues considered by the committee including, but not limited to, the following: (1) identification of the current level of economic development, housing, and community development programs and services provided by existing agencies, any existing gaps in programs and services, and the capacity and ability of those agencies to expand their activities; and (2) the recommended organizational option for providing needed economic development, housing, and community development services in the most efficient, effective manner. o Subd. 4. Organizational options. The committee may only recommend: (1) establishment of a county economic development authority to operate under sections 469.090 to 469.1081, except that the county shall not have the powers of section 469.094 without the consent of an existing county housing and redevelopment authority operating within that county. For the purposes of a county economic development authority's operation, the county is considered to be the city and the county board is considered to be the city council; (2) requiring an existing county housing and redevelopment authority or multicounty housing and redevelopment authority to operate under sections 469.090 to 469.1081; (3) that the county pursue special legislation; or (4) no change in the existing structure. Subd. 5. Area of operation. The area of operation of a county economic development service provider created under this section shall include all cities within a county that have adopted resolutions electing to participate. A city may adopt a resolution electing to withdraw participation. The withdrawal election may be made every fifth year following adoption of the resolution electing participation. The withdrawal election is effective on the anniversary date of the original resolution provided notice is given to the county economic development authority not less than 90 nor more than 180 days prior to that anniversary date. The city electing to withdraw retains any rights, obligations, and liabilities it obtained or incurred during its participation. Any city within the county shall have the option to adopt a resolution to prohibit the county economic development service provider created under this section from operating within its boundaries and (1) within an agreed upon urban service area, or (2) within the distance approved in the committee report referenced in subdivision 3. If a city prohibits a county economic development service provider created under this section from operating within its boundaries, the city's property taxpayers shall not be subject to the property tax levied for the county economic development service provider. Subd. 6. City economic development authorities. If a county economic development service provider has been established under this section, existing city economic development authorities shall continue to function and operate under sections 469.090 to 469.1081. Additional city economic development authorities may be created within the area of operation of the county economic development service provider created under this section without the explicit concurrence of the county economic development service provider. Subd. 7. Continuation of existing county and multicounty housing and redevelopment authorities. Existing county and multicounty housing and redevelopment authorities shall continue to function and operate under the provisions of sections 469.001 to 469.047 Subd. 8. Nine-member boards authorized. In addition to the board options under section 469.095, a county economic development authority may have a nine-member board. If the authority has a nine- member board, at least two members must be county commissioners appointed by the county board. Of the county economic development authority board members initially appointed, two each shall be appointed for terms of one, two, or three years, respectively, and one each for terms of four, five or six years, respectively. Thereafter, ail authority members shall be appointed for six-year terms. Source: Minnesota Office of the Revisor of Statutes B Excerpt from Minnesota Session Laws 2005, 1st Special Session, Chapter 1 Sec. 106. Minnesota Statutes 2004, section 469.1082, subdivision I, is amended to read: Subdivision 1. [AUTHORITY TO CREATE.] A county leeateEl ElusiEle mekBllBlitaR area may form a county economic development authority or grant a housing and redevelopment authority the powers specified in subdivision 4, clause (2), if it receives a recommendation to do so from a committee formed under subdivision 2. An economic development authority established under this section has all the powers and rights of an authority under sections 469.090 to 469.1081, except the authority granted under section 469.094 if so limited under subdivision 4. This section is in addition to any other authority to create a county economic development authority or service provider. Nothine: in this section shall alter or imoair anv e:rant of powers. or anv other authority granted to a community development ae:ency. a county housine: and redevelopment authority. or any county as orovided in section 353D.41. Laws 1974. chapter 473. as amended. or Laws 1980. chapter 482. as amend. Anv county that has e:ranted economic develooment powers to a community develooment ae:ency or a county housing: and redevelopment authority under any of these orovisions may not form a county economic development authority or e:rant a housine: and redevelooment authority the powers specified in subdivision 4. clause (2). I I I I I I I I I I I I I I I I I I I I &9 APPENDIX II Metropolitan Council Demographic Projections @ HOUSEHOLD FORECASTS e ropo un ouse 0 orecas City or Township 1990 2000 2010 2020 2030 . ANOKA COUNTY Andover 4,430 8,107 12,100 14,600 15,500 Anoka 6,394 7,262 7,900 8,500 9,000 Bethel 130 149 160 180 200 Blaine (ot.) 12,825 15,926 20,700 29,300 31,200 Burns Two. 754 1,123 1,530 1,820 2,120 Centerville 519 1,077 1,340 1,600 1,850 Circle Pines 1,562 1,697 2,050 2,100 2,200 Columbia HlttS. 7,766 8,033 8,600 9,200 9,300 Columbus Two. 1,129 1,328 1,450 1,600 1,750 Coon Raoids 17,449 22,578 25,000 26,500 27,000 East Bethel 2,542 3,607 4,210 4,420 4,640 Fridley 10,909 11,328 11,600 11,900 12,300 Ham Lake . 2,720 4,139 5,100 5,300 5,500 Hilltop 410 400 410 410 410 Lexington 829 . 819 910 950 1,000 Lino Lakes . 2,603 4,857 7,100 8,600 10,100 Linwood Two. 1,146 1,578 1,820 1,950 2,090 Oak Grove .. 1,638 2,200 2,600 2,800 3,000 Rams~ 3,620 5,906 10,300 . 15,500 16,500 St. Francis 760 1,638 2,800 4,000 5,000 Sorinl! Lake Park (ot.) 2,302 . 2,676 2,700 2,750 2,950 ANOKA COUNTY TOTAL . 82,437 106,429 130,980 153;980 163,610 Mt ANOKA COUNTY Iitan Co cil H h Id F ts @> EMPLOYMENT FORECASTS e ropo oun mpJoymen orecas City or Township 1990 2000 2010 2020 2030 ANOKACOUNTY Andover 1,200 3,062 4,200 4,800 5,200 Anoka 11,755 13,250 14,400 15,200 16,200 Bethel 193 248 330 380 440 Blaine (pt.) 11,401 16,298 20,100 21,600 23,100 Bums Twp. 259 294 350 400 450 Centerville 168 359 520 630 670 Circle Pines 861 2,057 2,250 2,400 2,450 Columbia Hm. 4,536 6,419 6,600 6,800 7,000 Columbus 100 482 730 . 900 1,000 Coon Rapids 16,449 21,462 24,200 26,000 27,800 East Bethel 457 1;211 1,380 1,500 1,610 Fridley 23,821 25,957 30,200 33,000 35,300 Ham Lake 1,820 2,812 3,050 . 3,200 3,450 Hilltop . 250 254 350. 420 470 Lexington 630 631 .. 880 1,050 1,120 Lino Lakes 1,229 2,444 2,950 ... 3,300 3,550 Linwood Two. 50 120 .140.. 150 160 Oak Grove 200 354 430 530 640 Ramsey . 1,941 3,587 . 6,700 9,100 11,300 St. Francis 793 1,226 1,630 1,900 2,220 Spring Lake Park (Dt.) . 3,019 4,287 . 4,600 4,800 4,850 ANOKA COUNTY TOTAL 81,132 106,814 125,990 138,060 148,980 Mt ANOKA COUNTY Iitan C ciI E I t F ts @) APPENDIX III Committee Visioning Responses @ Committee Visioning Responses February 7, 2007 Question 1. What is the current emphasis of economic development activities in the area of Anoka County you represent? Ham Lake - Job creation. Columbus - Developing municipal utilities and dealing with wetland issues, since 60% of Columbus is wetland. East Bethel - Biggest thing is working with the Met Council on building a stand-alone sewer system to service the surrounding area and to enable development along the Hwy. 65 corridor. Fridley - Redevelopment concentrating on sites that are difficult to develop. City gets involved only if private sector can't do it on its own. Blaine - Re-thinking future plans in the northeast area. Burns Township - 90% of our community leaves the Township to work. Working on a commercial land use plan to prepare for future and to become less of a bedroom community. Coon Rapids - Infill development and redevelopment, particularly along Coon Rapids Blvd. There is a shift in demand towards the service sector. Most proposals are for office buildings, nDt industrial projects. We are also paying more attention to our housing stock. ACHRA - We can only work with cities and townships, our emphasis is on.doing our part, in parks and recreation, transportation, the National Sports Center, TPC, Vikings stadium, etc. We need to create an inventory of what is available so we can give people options to stay in the County. City of Anoka - Transportation has come to the top of our list, particularly on Hwy. 10 and 47. We are excited about the rail station coming to our community. Question 2. Let's travel in time to the year 2017. What economic development success stories will have made local, state or regional headlines over the last 10 years? Ham Lake - To have created a positive image for the City. Burns Township - To have become a sports tourism destination. . Coon Rapids - To have completed redevelopment on Coon Rapid Blvd. and the success of commuter rail at both station sites. AnokaCounty - There is an interest in the Vikings stadium deal. it was successful at creating a positive image of what is available here. We have to look at the big picture, and work together. One of the things is to develop a theme, we were looking ata stadium and retail opportunities which could have made Anoka County and Blaine a sports and entertainment center in the upper Midwest Columbus - Racetrack will be a comerstone of our future development, and it will bring in utilities. ACHRA - Economic development is going to impact transportation needs in Anoka County, and rather than fighting . to maintain smaller road systems we need to reinvent Hwy. 65 as a full highway. @ East Bethel- An entertainment area for Minnesota, potentially a NASCAR track in the northem part of the County. Fridley - Time is going to bring increased populations which will further increase the importance of transportation, in particular, it would be nice to have better north-south movement inn the County. Herm Talle - We are going to have development as individual entities, but our strength is in doing it together by having a coordinating entity. We have to put it together so that everyone agrees. Blaine - We have to move forward on issues such as crime, transportation, and image. If we don't advance in these areas Anoka County won't look much different 10 years from now. Question 3. Based on these headlines, what should be the focus of economic development activities over the next 10 years? Anoka County - We have to focus on the problems we have, and realize some territorialism. We. need to recognize that we have some competitiveness, and we need to be aware of this. We need to update our image from one of trailer parks and pole buildings. Additionally, we need to talk about outcomes and how we measure success. Ham Lake - Entertainment and transportation are two themes that came up the most. How will increased broadband internet availability change the employment landscape, can it be tied to easing transportation issues? How can we provide leadership for these issues? Blaine - A major factor in attracting bio-science industries is the availability of high-speed internet. How does the County and local governments go about ensuring that this resource is available? Will Anoka County reach the maximum per-mile density necessary to spur private development of these networks? How does the County go about providing this? Columbus - We are still on modems in Columbus. The focus needs to be on the young, small population cities like Columbus who are tied with Wyoming and JOBZ on our borders. ACHRA - How about concentrating on the impact from our youth? They are smart people, and we have to trust their instincts. The older folks are hitting retirement, and the youth are going to be the job market. What are they going to be doing, and where? East Bethel- We need to look beyond just 10 years, as much as 50-100 years out. Irs terrible how much money has to be set aside for right-of-way acquisition. Need to focus now on right-of-way acquisition for projects that won't be occurring for another 50 years. Burns Township - Preparing ourselves would help, focusing on communication and the things that would invite commercial development. Coon Rapids - Planning, commitment and the will to follow through with plans. Too often the will to follow through is missing. Partnerships, building trust, and being able to work between different units of govemment come in baby steps. The more communication and good faith efforts are put forth, the better place Anoka County will be. @ APPENDIX IV Local Government Inventory Questionnaire @ Local Government Inventory Questionnaire Local Government Name: Name: Job Title: Telephone Number: Email Address: 1. Do you have: (Complete the boxes that apply) Year Established Number of Members EDA HRA HRA wlEDA Powers Port Authority Economic Dev. Committee 2. If you have an EDA, are you using statutory ability to levy? Yes 0 Yes 0 Yes 0 No 0 No 0 No 0 3. If you have an HRA, are you using statutory ability to levy? 4. If you have a Port Authority, are you using statutory ability to levy? 5. Do you have paid staff specifically dedicated to economic development activities? If yes, how many FfEs? Yes 0 No 0 6. Please list examples of projects the EDNHRA/local government has funded within the last five years, and the amount and type of funding used. Proiect Name Year Type of Fundin,g Amount of Fundin,g . @ 7. What economic development tools have you been using or would you consider using? What tools would you absolutely not use? (Space is provided to add other types of economic development tools.) Please indicate below: Have Would Would Not Used Consider Use Community Development Block Grants Contamination Cleanup and Investigation Grant Program Economic Development AuthoritylHousing Redevelopment Authority Economic Development Fund Eminent Domain Livable Communities Grant Minnesota Investment Fund Municipal State Aid Street Fund Redevelopment Grant Revolving Loan Fund/Interest Buy Down Programs . Special Assessment Special Service District . . ....--.. Tax Abatement -- Tax-Exempt Financing . m ._ TIF - Redevelopment District TIF - Renewal and Renovation District TIF - Housing District TIF - Economic Development District I @ 8. What other related economic development tools has your locality employed? (Space is provided to other types of local programs.) Have Would Would Not Used Consider Use Business Retention Program . Locality Marketing Plan Workforce Training Programs Business Incubator Programs Job Skills Partnership Act 9. Have you exercised the option for the EDAIHRA to be a limited partner in a relationship? Why or why not? 10. What is the current emphasis of economic development activities in your community? 11. Let's travel in time to the year 2017. What economic development success stories will have made local, county or regional headlines over the last 10 years? . @ 12. Based on these headlines, what should be the focus of economic development activities over the next 10 years? 13. What barriers have limited economic development in your local government? 14. What has been your greatest economic development challenge? - . . . 15. Describe limitations that have been placed on the use of economic powers within your local government. . . . .. 16. What projects have you wanted to do; but have been unable to accomplish? . 17. If a County economic development organization were formed what factors would influence your participation? @) 18. Please indicate the most recently adopted economic development goals for your local government in the space below 19. Please list any recent studies and analytical research that has been prepared regarding the economic development environment in your local government. . . 20. The charts below show the Metropolitan Council projections for Population, Housing and Employment growth in Anoka County between 2010 and 2030. If you have different projections for your locality please indicate in the space provided. Population 2010 2010 2020 . 2020 2030 2030 . .'... . ..- I. . ... . City Est. CitY Est. City. Est.. Andover . 33,000 39,000 40,500 .. Anoka .--,.-. .' 19,000 19,800 . 20,800 . Bethel 450 460 510 Blaine . . . 64,800 76,100 78,000 Bums Twp. 4,480 4,990 5,800 . CeIitervilIe . . . .. 3,700 .. . 4,100 ., . . 4,700 .. .. Circle Pines . . ..... .. . .5,400 5,300 5,400 ... ....1. Columbia H:eigb~ . 20,000 21,400 21,700 .' Columbus 4,000 4,240 . 4,680 .. Coon Rapids .. . . 65,700 66,000 65,000 .. .......... East Bethel 1l,8oo 11,700 12,100 Fridley 27,000 26,900 27,500 Ham Lake 15,200 15,200 . 15,200 HilItoo 770 770 770 LexinJ:!;ton 2,250 2,250 2,300 Lino Lakes 22,500 26,300 30,700 Linwood Twp. 4,920 5,000 5,400 Oak Grove 7,700 8,300 8,600 Ramsev 31,300 45,000 44,000 St. Francis 7,700 10,400 12,800 Soring Lake Park 6,600 6,600 6,800 Anoka County Total 358,270 399,810 413,260 @ Households 2010 2010 2020 2020 2030 2030 City Est. . City Est. City Est. Andover 12,100 . 14,600 15,500 Anoka 7,900 8,500 9,000 Bethel 160 180 200 Blaine 24,000 29,300 31,200 Bums Two. . 1,530 1,820 2,120 Centerville 1,340 1,600 1,850 Circle Pines 2,050 2,100 2,200 Columbia Heights 8,600 9,200 9,300 Columbus 1,450 1,600 1,750 Coon Raoids 25,600 26,500 27,000 East Bethel 4,210 4,420 4,640 Fridley 11,600 11,900 12,300 Ham Lake 5,100 5,300 5,500 Hilltoo 410 410 410 Lexin~on 910 950 1,000 Lino Lakes . 7,100 8,600 10,100 Linwood Twp. 1,820 1,950 2,090 Oak Grove 2,700 3,000 3,220 Ramsev 10,900 16,200 16,500 St. Francis 2,800 . 4,000 5,000 Sorinl!: Lake Park 2,700 2,750 2,950 . AnokaCounty Total 134,980 154,880 163,830 Employment 2010 2010 2020 2020 2030 2030 City Est. City Est. City Est. Andover 4,200 4,800 5,200 Anoka 14,400 15,200 16,200 Bethel .. . 330 380 440 . Blaine 20,100 21,600 23,100 Bums Twp. 350 . .. 400 450 . Centerville 520 630 670 Circle Pines 2,250 2,400 2,450 Columbia Heil!:hts 6,600 6,800 7,000 Columbus 730 900 1,000 Coon Raoids 24,200 26,000 27,800 East Bethel 1,380 1,500 1,610 Fridley 30,200 33,000 35,300 Ham Lake 3,050 3,200 3,450 HilItoo 350 420 470 Lexin~on 880 1,050 1,120 Lino Lakes 2,950 3,300 3,550 Linwood Twp. 140 150 160 Oak Grove 500 600 680 Ramsev 6,700 9,100 11,300 St. Francis 1,630 1,900 2,220 Sprinl!: Lake Park 4,600 4,800 4,850 Anoka County Total 126.060 138,130 149,020 Please submit surveys to anokacountv@sprine:sted.com by Friday, February 23,2007. . Questions may be directed to Sharon Klumpp with Springsted at 651.223.3053 or at skJumoo@sprine:sted.com. & 469. Economic Development Page 1 of17 ECONOMIC DEVELOPMENT AUTHORITIES 469.090 DEFINITIONS. Subdivision 1. Generally. In sections 469.090 to 469.108, the terms defined in this section have the meanings given them herein, unless the context indicates a different meaning. Subd. 2. Authority. "Authority" means an economic development authority. Subd. 3. City. "City" means a home rule charter or statutory city. Subd. 4. Development. "Development" includes redevelopment, and "developing" includes redeveloping. Subd. 5. Cost of redevelopment. "Cost of redevelopment" means, with respect to an economic development district project, the cost of: (1) acquiring property, whether by purchase, lease, condemnation, or otherwise; (2) demolishing or removing structures or other improvements on acquired properties; (3) correcting soil deficiencies necessary to develop or use the property for an appropriate use as determined by the authority; (4) constructing or installing public improvements, including streets, roads, and utilities; (5) providing relocation benefits to the occupants of acquired properties; (6) planning, engineering, legal, and other services necessary to carry out the functions listed in clauses (1) to (5); and (7) the allocated administrative expenses of the authority for the project. History: 1987 c 291 s 91 469.091 ECONOMIC DEVELOPMENT AUTHORITY. Subdivision 1. Establishment. A city may, by adopting an enabling resolution in compliance with the procedural requirements of section 469.093. establish an economic development authority that, subjectto section 469.092, has the powers contained in sections 469.090 to 469.108 and the powers ofahousing and redevelopment authority under sections 469.001 to 469.047 or other law, and ofa city under sections 469.124 to 469.134 or other law. If the economic development authority exercises the powers of a housing and redevelopment authority contained in sections 469.001 to 469.047 or other law, the city shall exercise the powers relating to a housing and redevelopment authority granted to a city by sections 469.001 to 469.047 or other law. Subd. 2. Characteristics. An economic development authority is a public body corporate and politic and a political subdivision of the state with the right to sue and be sued in its own name. An authority carries out an essential governmental function when it exercises its power, but the authority is not immune from liability because ofthis. Subd. 3. Unpaid officers, directors, and agents; liability. Section 317 A.257 applies to an economic development authority or to a nonprofit corporation exercising the powers of an economic development authority. History: 1987 c 291 s 92; 1994 c 623 art 5 s 2 469.092 LIMIT OF POWERS. . Subdivision 1. Resolution. The enabling resolution may impose the following limits upon the actions of the authority: (1) that the authority must not exercise any specified powers contained in sections 469.001 to 469.047, 469.090 to 469.108. and 469.124 to 469.134 or that the authority must not exercise any @ http://www.revisor.1eg.state.mn.us/bin/getpub.php?pubtype=STAT _ CHAP&year=current&chapter=469 7/16/2007 469. Economic Development Page 2 of17 powers without the prior approval ofthe city council; (2) that, except when previously pledged by the authority, the city council may by resolution require the authority to transfer any portion of the reserves generated by activities of the authority that the city council determines is not necessary for the successful operation of the authority to the debt service fund of the city, to be used solely to reduce tax levies for bonded indebtedness of the city; (3) that the sale of all bonds or obligations issued by the authority be approved by the city council before issuance; (4) that the authority follow the budget process for city departments as provided by the city and as implemented by the city council and mayor; (5) that all official actions of the authority must be consistent with the adopted comprehensive plan of the city, and any official controls implementing the comprehensive plan; (6) that the authority submit all planned activities for influencing the action of any other govemmental agency, subdivision, or body to the city council for approval; (7) that the authority submit its administrative structure and management practices to the city council for approval; and (8) any other limitation or control established by the city council by the enabling resolution. Subd. 2. Modification of resolution. The enabling resolution may be modified at any time, subject to subdivision 5, and provided that any modification is made in accordance with this section. Subd. 3. Report on resolution. Without limiting the right of the authority to petition the city council at any time, each year, within 60 days of the anniversary date of the first adoption of the enabling resolution, the authority shall submit to the city council a report stating whether and how the enabling resolution should be modified. Within 30 days of receipt of the recommendation, the city council shall review the enabling resolution, consider the recommendations of the authority, and make any modification it considers appropriate. Modifications must be made in accordance with the procedural requirements of section 469.093. Subd. 4. Compliance. The city council's determination that the authority has complied with the limitations imposed under this section is conclusive. Subd. 5. Limits; security. Limits imposed under this section must not be applied in a manner that impairs the security of any bonds issued or contracts executed before the limit is imposed. The city council must not modify any limit in effect at the time any bonds or obligations are issued or contracts executed to the detriment of the holder of the bonds or obligations or any contracting party. History: 1987 c 291 s 93 469.093 PROCEDURAL REQUIREMENT. Subdivision I. Enabling resolution. The creation of an authority by a city must be by written resolution referred to as the enabling resolution. Before adopting the enabling resolution, the city council shall conduct a public hearing. Notice of the time and place 'of hearing, a statement ofthe purpose of the hearing, and a summary of the resolution must be published in a newspaper of general circulation within the city once a week for two consecutive weeks. The first publication must appear not more than 30 days from the date of the public hearing. Subd. 2. Modifications. All modifications to the enabling resolution must be by written resolution and must be adopted after notice is given and a public hearing conducted as required @ http://www.revisor.1eg.state.mn.us/bin/getpub.php?pubtype=STA T _ CHAP&year=current&chapter=469 7/16/2007 469. Economic Development Page 3 of17 for the original adoption of the enabling resolution. History: 1987 c 291 s 94 469.094 TRANSFER OF AUTHORITY. Subdivision 1. Economic development, housing, redevelopment powers. The city may, by ordinance, divide the economic development, housing, and redevelopment powers granted under sections 469.001 to 469.047 and 469.090 to 469.108 between the economic development authority and any other authority or commission established under statute or city charter for economic development, housing, or redevelopment as provided in subdivision 2. Subd. 2. Project control, authority, operation. The city may, by resolution, transfer the control, authority, and operation of any project as defmed in section 469.174. subdivision 8, or any other program or project authorized by sections 469.001 to 469.047 or 469.124 to 469.134 located within the city, from the governmental agency or subdivision that established the project to the economic development authority. The city council may also require acceptance of control, authority, and operation of the project by the economic development authority. The economic development authority may exercise all of the powers that the governmental unit establishing the project could exercise with respect to the project. When a project or program is transferred to the economic development authority, the authority shall covenant and pledge to perform the terms, conditions, and covenants of the bond indenture or other agreements executed for the security of any bonds issued by the governmental subdivision that initiated the project or program. The economic development authority may exercise all of the powers necessary to perform the terms, conditions, and covenants of any indenture or other agreements executed for the security of the bonds and shall become obligated on the bonds when the project or program is transferred as provided in this subdivision. If the city transfers a housing project or a housing development project to the economic development authority, the city must transfer all housing development and management powers relating to that specific project to the authority. Subd. 3. Transfer ofpersonneI. Notwithstanding any other law or charter provision to the contrary, the city council may, by resolution, place any emJ>loyees of the housing and redevelopment authority under the direction, supervision, or control of the economic development authority. The placement of any employees under the direction, supervision, or control of the economic development authority does not affect the rights of any employees of the housing and redevelopment authority, including any rights existing under a collective bargaining agreement or fringe benefit plan. The employees shall become employees of the economic development authority. History: 1987 c 291 s 95; 1990 c 532 s 11,12 469.095 COMMISSIONERS; APPOINTMENT, TERMS, VACANCIES, PAY, REMOVAL. Subdivision 1. Commissioners. Except as provided in subdivision 2, paragraph (d), an economic development authority shall consist of either three, five, or seven commissioners who shall be appointed after the enabling resolution provided for in section 469.093 becomes effective. The resolution must indicate the number of commissioners constituting the authority. Subd. 2. Appointment, terms; vacancies. (a) Three-member authority: the commissioners constituting a three-member authority, one of whom must be a member of the city council, shall be appointed by the mayor with the approval of the city council. Those initially appointed shall @ http://www.revisor.1eg.state.mn.us/bin/getpub.php?pubtype=ST AT _ CHAP&year=current&chapter=469 7/16/2007 469. Economic Development Page 4 of 17 be appointed for terms of two, four, and six years, respectively. Thereafter all commissioners shall be appointed for six-year terms. (b) Five-member authority: the commissioners constituting a five-member authority, two of whom must be members of the city council, shall be appointed by the mayor with the approval of the city council. Those initially appointed shall be appointed for terms of two, three, four, five, and six years respectively. Thereafter all commissioners shall be appointed for six-year terms. (c) Seven-member authority: the commissioners constituting a seven-member authority, two of whom must be members of the city council, shall be appointed by the mayor with the approval of the city council. Those initially appointed shall be appointed for terms of one, two, three, four, and five years respectively and two members for six years. Thereafter all commissioners shall be appointed for six-year terms. (d) The enabling resolution may provide that the members of the city council shall serve as the commissioners. (e) The enabling resolution may provide for the appointment of members of the city council in excess ofthe number required in paragraphs (a), (b), and (c). (t) A vacancy is created in the membership of an authority when a city council member of the authority ends council membership. A vacancy for this or another reason must be filled for the balance of the unexpired term, in the manner in which the original appointment was made. The city council may set the term ofthe commissioners who are members of the city council to coincide with their term of office as members of the city council. Subd. 3. Increase in commission members. An authority may be increased from three to five or seven members, or from five to seven members by a resolution adopted by the city council following the procedure provided for modifYing the enabling resolution in section 469.093. Subd. 4. Compensation and reimbursement. A commissioner, including the president, shall be paid for attending each regular or special meeting of the authority in an amount to be determined by the city council. In addition to receiving pay for meetings, the commissioners may be reimbursed for actual expenses incurred in doing official business of the authority. All money paid for compensation or reimbursement must be paid out of the authority's budget. Subd. 5. Removal for cause. A commissioner may be removed by the city council for inefficiency, neglect of duty, or misconduct in office. A commissioner shall be removed only after a hearing. A copy of the charges must be given to the commissioner at least ten days before the hearing. The commissioner must be given an opportunity to be heard in person or by counsel at the hearing. When written charges have been submitted against a commissioner, the city council may temporarily suspend the commissioner. If the city council finds that those charges have not been substantiated, the commissioner shall be immediately reinstated. If a commissioner is removed, a record of the proceedings, together with the charges and findings, shall be filed in the office ofthe city clerk. History: 1987 c 291 s 96 469.096 OFFICERS; DUTIES; ORGANIZATIONAL MATTERS. Subdivision 1. Bylaws, rules, seal. An authority may adopt bylaws and rules of procedure and shall adopt an official seal. Subd. 2. Officers. An authority shall elect a president, a vice-president, a treasurer, a secretary, and an assistant treasurer. The authority shall elect the president, treasurer, and secretary annually. A commissioner must not serve as president and vice-president at the same time. The @ http://www.revisor.1eg.state.mn.us/binlgetpub.php?pubtype=ST AT _ CHAP&year=current&chapter=469 7/16/2007 469. Economic Development Page 5 of17 other offices may be held by the same commissioner. The offices of secretary and assistant treasurer need not be held by a commissioner. Subd. 3. Duties and powers. The officers have the usual duties and powers oftheir offices. They may be given other duties and powers by the authority. Subd. 4. Treasurer's duties. The treasurer: . (1) shall receive and is responsible for authority money; (2) is responsible for the acts of the assistant treasurer; (3) shall disburse authority money by check only; (4) shall keep an account ofthe source of all receipts, and the nature, purpose, and authority of all disbursements; and (5) shall file the authority's detailed [mancial statement with its secretary at least once a year at times set by the authority. Subd. 5. Assistant treasurer. The assistant treasurer has the powers and duties of the treasurer if the treasurer is absent or disabled. Subd. 6. Treasurer's bond. The treasurer shall give bond to the state conditioned for the faithful discharge of official duties. The bond must be approved as to form and surety by the authority and filed with the secretary. The bond must be for twice the amount of money likely to be on hand at anyone time, as determined at least annually by the authority provided that the bond must not exceed $300,000. Subd. 7. Public money. Authority money is public money. Subd. 8. Checks. An authority check must be signed by the treasurer and one other officer named by the authority in a resolution. The check must state the name of the payee and the nature of the claim that the check is issued for. Subd. 9. Financial statement. The authority's detailed financial statement must show all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the authority's credits and assets, and its outstanding liabilities in a form required for the city's [mancial statements. The authority shall examine the statement together with the treasurer's vouchers. If the authority finds that the statement and vouchers are correct, it shall approve them by resolution and enter the resolution in its records. History: 1987 c 291 s 97 469.097 EMPLOYEES; SERVICES; SUPPLIES. Subdivision 1. Employees. An economic development authority may employ an executive director, a chief engineer, other technical experts and agents, and other employees as it may require, and determine their duties, qualifications, and compensation. Subd. 2. Contract for services. The authority may contract for the services of consultants, agents, public accountants, and other persons needed to perform its duties and exercise its powers. Subd. 3. Legal services. The authority may use the services of the city attorney or hire a general counsel for its legal needs. The city attorney or general counsel, as determined by the authority, is its chiefIegal advisor. Subd. 4. Supplies. The authority may purchase the supplies and materials it needs to carry out sections 469.090 to 469.108. Subd. 5. City purchasing. An authority may use the facilities of its city's purchasing department in connection with construction work and to purchase equipment, supplies, or materials. @ http://www.revisor.1eg.state.mn.us/bin/getpub.php?pubtype=STAT _ CHAP&year=current&chapter=469 7/16/2007 469. Economic Development Page 6 of17 Subd. 6. City facilities, services. A city may furnish offices, structures and space, and stenographic, clerical, engineering, or other assistance to its authority. Subd. 7. Delegation power. The authority may delegate to one or more of its agents or employees powers or duties as it may deem proper. History: 1987 c 291 s 98 469.098 CONFLICT OF INTEREST. Except as authorized in section 471.88 a commissioner, officer, or employee of an authority must not acquire any fmancial interest, direct or indirect, in any project or in any property included or planned to be included in any project, nor shall the person have any fmancial interest, direct or indirect, in any contract or proposed contract for materials or service to be furnished or used in connection with any project. History: 1987 c 291 s 99 469.099 DEPOSITORIES; DEFAULT; COLLATERAL. Subdivision 1. Named; bond. Every two years an authority shall name national or state banks within the state as depositories. Before acting as a depository, a named bank shall give the authority a bond approved as to form and surety by the authority. The bond must be conditioned for the safekeeping and prompt repayment of deposits. The amount of bond must be at least equal to the maximum sums expected to be deposited at anyone time. Subd. 2. One bank account. An authority may deposit all its money from any source in one bank account. Subd. 3. Default; collateral. When authority funds are deposited by the treasurer in a bonded depository, the treasurer and the surety on the treasurer's official bond are exempt from liability for the loss of the deposits because of the failure, bankruptcy, or other act or default ofthe depository. However, an authority may accept assignments of collateral from its depository to secure deposits just as assignments of collateral are permitted by law to secure deposits of the authority's city. History: 1987 c 291 s 100 469.100 OBLIGATIONS. Subdivision 1. Taxes and assessments prohibited. An authority must not levy a tax or special assessment, except as otherwise provided in sections 469.090 to 469.108. pledge the credit of the state or the state's municipal corporations or other subdivisions, or incur an obligation enforceable on property not owned by the authority. Subd. 2. Budget to city. Annually, at a time fIXed by charter, resolution, or ordinance of the city, an authority shall send its budget to its city's council. The budget must include a detailed written estimate of the amount of money that the authority expects to need from the city to do authority business during the next fiscal year. The needed amount is what is needed in excess of any expected receipts from other sources. Subd. 3. Fiscal year. The fiscal year of the authority must be the same as the fiscal year of its city. Subd. 4. Report to city. Annually, at a time and in a form fIXed by the city council, the authority shall make a written report to the council giving a detailed account of its activities and of its receipts and expenditures during the preceding calendar year, together with additional matters and recommendations it deems advisable for the economic development of the city. @ http://www.revisor.1eg.state.mn.uslbin/getpub.php?pubtype=STAT _ CHAP&year=current&chapter=469 7/16/2007 469. Economic Development Page 7 of 17 Subd. 5. Audits. The fmancial statements of the authority must be prepared, audited, filed, and published or posted in the manner required for the financial statements of the city that established the authority. The financial statements must permit comparison and reconciliation with the city's accounts and financial reports. The report must be filed with the state auditor by June 30 of each year. The auditor shall review the report and may accept it or, in the public interest, auditthe books of the authority. Subd. 6. Compliance examinations. At the request of the city or upon the auditor's initiative, the state auditor may make a legal compliance examination of the authority for that city. Each authority examined must pay the total cost ofthe examination, including the salaries paid to the examiners while actually engaged in making the examination. The state auditor may bill monthly or at the completion of the audit. All collections received must be deposited in the general fund. History: 1987 c 291 s 101; 1989 c 335 art 4 s 88 469.101 POWERS. Subdivision 1. Establishment. An economic development authority may create and defme the boundaries of economic development districts at any place or places within the city if the district satisfies the requirements of section 469.174. subdivision 10, except that the district boundaries must be contiguous, and may use the powers granted in sections 469.090 to 469.108 to carry out its purposes. First the authority must hold a public hearing on the matter. At least ten days before the hearing, the authority shall publish notice of the hearing in a daily newspaper of general circulation in the city. Also, the authority shall find that an economic development district is proper and desirable to establish and develop within the city. Subd. 2. Acquire property. The economic development authority may acquire by lease, purchase, gift, devise, or condemnation proceedings the needed right, title, and interest in property to create economic development districts. It shall pay for the property out of money it receives under sections 469.090 to 469.108. It may hold and dispose of the property subject to the limits and conditions in sections 469.090 to 469.108. The title to property acquired by condemnation or purchase must be in fee simple, absolute. The authority may accept an interest in property acquired in another way subject to any condition of the grantor or donor. The condition must be consistent with the proper use of the property under sections 469.090 to 469.108. Property acquired, owned, leased, controlled, used, or occupied by the authority for any of the purposes of this section is for public governmental and municipal purposes and is exempt from taxation by the state or by its political subdivisions, except to the extent that the property is subject to the sales and use tax under chapter 297 A. The exemption applies only while the authority holds property for its own purpose. The exemption is subject to the provisions of section 272.02, subdivision 39 . When the property is sold it becomes subject to taxation. Subd. 3. Options. The economic development authority may sign options to purchase, sell, or lease property. Subd. 4. Eminent domain. The economic development authority may exercise the power of eminent domain under chapter 117, or under its city's charter to acquire property it is authorized to acquire by condemnation. The authority may acquire in this way property acquired by its owner by eminent domain or property already devoted to a public use only if its city's council approves. The authority may take possession of property to be condemned after it files a petition in condemnation proceedings describing the property. The authority may abandon the condemnation before taking possession. @> http://www.revisor.1eg.state.mn.us/bin/getpub.php?pubtype=STAT _ CHAP&year=current&chapter=469 7/16/2007 469. Economic Development Page 8 of 17 Subd. 5. Contracts. The economic development authority may make contracts for the purpose of economic development within the powers given it in sections 469.090 to 469.108. The authority may contract or arrange with the federal government, or any of its departments, with persons, public corporations, the state, or any of its political subdivisions, commissions, or agencies, for separate or joint action, on any matter related to using the authority's powers or performing its duties. The authority may contract to purchase and sell real and personal property. An obligation or expense must not be incurred unless existing appropriations together with the reasonably expected revenue of the authority from other sources are sufficient to discharge the obligation or pay the expense when due. The state and its municipal subdivisions are not liable on the obligations. Subd. 6. Limited partner. The economic development authority may bea limited partner in a partnership whose purpose is consistent with the authority's purpose. Subd. 7. Rights; easements. The economic development authority may acquire rights or an easement for a term of years or perpetually for development of an economic development district. Subd. 8. Supplies; materials. The economic development authority may buy the supplies and materials it needs to carry out this section. Subd. 9. Receive public property. The economic development authority may accept land, money, or other assistance, whether by gift, loan or otherwise, in any form from the federal or state government, or an agency of either, or a local subdivision of state government to carry out sections 469.090 to 469.108 and to acquire and develop an economic development district and its facilities under this section. Subd. 10. Development district authority. The economic development authority may sell or lease land held by it for economic development in economic development districts. The authority may acquire, sell, or lease single or multiple tracts of land regardless of size, to be developed as a part of the economic development of the district under sections 469.090 to 469.108. Subd. 11. Foreign trade zone. The economic development authority may apply to the board deimed in United States Code, title 19, section 8111, for the right to use the powers provided in United States Code, title 19, sections 81a to 81u. If the right is granted, the authority may use . the powers. One authority may apply with another authority. Subd. 12. Relation to other redevelopment powers. The economic development authority may exercise powers and duties ofa redevelopment agency under sections 469.152 to 469.165. for a purpose in sections 469.001 to 469.047 or 469.090 to 469.108. The authority may also use the powers and duties in sections 469.001 to 469.047 and 469.090 to 469.108 for a purpose in sections 469.152 to 469.165. Subd. 13. Public facilities. The authority may operate and maintain a public parking facility or other public facility to promote development in an economic development district. Subd. 14. Government agent. An economic development authority may cooperate with or act as agent for the federal or the state government, or a state public body, or an agency or instrumentality ofa government or a public body to carry out sections 469.090 to 469.108 or any other related federal, state, or local law in the area of economic development district improvement. Subd. 15. Studies, analysis, research. An authority may study and analyze economic development needs in the city, and ways to meet the needs. An authority may study the desirable patterns for land use for economic development and community growth and other factors affecting local economic development in the city and make the result of the studies available to the public. and to industry in general. An authority may engage in research and disseminate information on @ http://www.revisor.leg.state.mn.us/bin/getpub.php?pubtype=STAT _ CHAP&year=current&chapter=469 7/16/2007 46Y. Economic Development Page 9 of17 economic development within the city. Subd. 16. Public relations. To further an authorized purpose, an authority may (I) join an official, industrial, commercial, or trade association, or another organization concerned with the purpose, (2) have a reception of officials who may contribute to advancing the city and its economic development, and (3) carry out other public relations activities to promote the city and its economic development. Activities under this subdivision have a public purpose. Subd. 17. Accept public land. An authority may accept conveyances of land from all other public agencies, commissions, or other units of government, if the land can be properly used by the authority in an economic development district, to carry out the purposes of sections 469.090 to 469.108. Subd. 18. Economic development. An authority may carry out the law on economic development districts to develop and improve the lands in an economic development district to make it suitable and available for economic development uses and purposes. An authority may fill, grade, and protect the property and do anything necessary and expedient, after acquiring the property, to make it suitable and attractive as a tract for economic development. An authority may lease some or all of its lands or property and may set up local improvement districts in all or part of an economic development district. Subd. 19. Loans in anticipation of bonds. After authorizing bonds under sections 469.102 and 469.103, an authority may borrow to provide money immediately required for the bond purpose. The loans must not exceed the amount of the bonds. The authority shall by resolution decide the terms of the loans. The loans must be evidenced by negotiable notes due in not more than 12 months from the date of the loan payable to the order of the lender or to bearer, to be repaid with interest from the proceeds ofthe bonds when the bonds are issued and delivered to the bond purchasers. The loan must not be obtained from any commissioner of the authority or . from any corporation, association, or other institution of which an authority commissioner is a stockholder or officer. Subd. 20. Use of proceeds. The proceeds of obligations issued by an authority under section 469.103 and temporary loans obtained under subdivision 19 may be used to make or purchase loans for economic development facilities that the authority believes will require financing. To make or purchase the loans, the authority may enter into loan and related agreements, both before and after issuing the obligations, with persons, firms, public or private corporations, federal or state agencies, and governmental units under terms and conditions the authority considers appropriate. A governmental unit ill the state may apply, contract for, and receive the loans. Chapter 475 does not apply to the loans. Subd. 21.[Repealed, 2000 c 490 art 11 s 44] Subd. 22. Secondary market. An authority may sell, at private or public sale, at the price or prices determined by the authority, any note, mortgage, lease, sublease, lease purchase, or other instrument or obligation evidencing or securing a loan made for the purpose of economic development, job creation, redevelopment, or community revitalization by a public agency to a business, for-profit or nonprofit organization, or an illdividual. Subd. 23. Supplying small business capital. Notwithstanding any contrary law, the authority may participate with public or private corporations or other entities, whose purpose is to provide seed or venture capital to small businesses that have facilities located or to be located in the district. For that purpose the authority may use not more than ten percent of available annual net income or $1,000,000 annually, whichever is less, to invest in equities or acquire @ http://www.revisor.1eg.state;mn;usfbin/getpub.php?pubtype=STA T _ CHAP&year=current&chapter=469 7/16/2007 469. Economic Development Page 10 of 17 equity-type investments. These investments can be made directly in eligible corporations or entities or acquired through participation in a public or private seed or venture capital fund. The participation by the authority may not exceed in any year 25 percent of the total amount of funds provided for venture or seed capital purposes by all of the participants. The corporation, entity, or fund shall report in writing each six months to the commissioners of the authority all investments and other action taken by it since the last report Funds contributed to the corporation or entity must be invested pro rata with each contributor of capital taking proportional risks on each investment. As used in this subdivision, the term "small business" has the meaning given it in section 645.445. subdivision 2. History: 1987 c 291 s 102; 1988 c 580 s 5; 1991 c 295 s 2; 1992 c 363 art 1 s 13; 2000 c 418 art 2 s 7; 2006 c 214 s 20 469.102 GENERAL OBLIGATION BONDS. Subdivision 1. Authority; procedure. An economic development authority may issue general obligation bonds in the principal amount authorized by two-thirds majority vote of its city's council. The bonds may be issued in anticipation of income from any source. The bonds may be issued: (1) to secure funds needed by the authority to pay for acquired property or (2) for other purposes in sections 469.090 to 469.108. The bonds must be in the amount and form and bear interest at the rate set by the city council. Except as otherwise provided in sections 469.090 to 469.108, the issuance ofthe bonds is governed by chapter 475. The authority when issuing the bonds is a municipal corporation under chapter 475. Subd. 2. Detail; maturity. The authority with the consent of its city's council shall set the date, denominations, place of payment, form, and details of the bonds. The bonds must mature serially. The first instalhnent is due in not more than three years and the last in not more than 30 years from the date of issuance. Subd. 3. Signatures; coupons; liability. The bonds must be signed by the president of the authority, be attested by its secretary, and be countersigned by its treasurer; the signatures may be facsimile signatures. The interest coupons if any, must be attached to the bonds. The coupons must be executed and authenticated by the printed, engrossed, or lithographed facsimile signature of the authority's president and secretary. The bonds do not impose any personal liability on a member of the authority. Subd. 4. Pledge. The bonds must be secured by the pledge of the full faith, credit, and resources of the issuing authority's city. The authority may pledge the full faith, credit, and resources of the city only if the city specifically authorizes the authority to do so. The city council must first decide whether the issuance ofthe bonds by the authority is proper in each case and if so, the amount of bonds to issue. The city council shall give specific consent in an ordinance to the pledge of the city's full faith, credit, and resources. The authority shall pay the principal amount of the bonds and the interest on it from taxes levied under this section to make the payment or from authority income from any source. Subd. 5. Tax levy. An authority that issues bonds under this section, shall, before issuing them, levy a tax for each year on the taxable property in the authority's city. The tax must be for at least five percent more than the amount required to pay the principal and interest on the bonds as the principal and interest mature. The tax must be levied annually until the principal and interest are paid in full. After the bonds have been delivered to the purchasers, the tax must not be repealed until the debt is paid. After the bonds are issued, the authority need not take any more @ http://www.revisor.leg.state.mn.us/bin/getpub.php?pubtype=ST AT _ CHAP&year=current&chapter=469 7/16/2007 469. Economic Development Page 11 of17 action to authorize extending, assessing, and collecting the tax. On or before September IS, the authority's secretaIy shall send a certified copy of the levy to the county auditor, together with full information on the bonds for which the tax is levied. The county auditor shall extend and assess the levied tax annually until the principal and interest are paid in full. The authority shall transfer the surplus from the excess levy in this section to a sinking fund after the principal and interest for which the tax was levied and collected is paid. The authority may direct its secretaIy to send a certificate to the county auditor before September IS in a year. The certificate must state how much available income, including the amount in the sinking fund, the authority will use to pay principal or interest or both on each specified issue of the authority's bonds. The auditor shall then reduce the bond levy for that year by that amount. The authority shall then set aside the certified amount and may not use it for any purpose except to pay the principal and interest on the bonds. The taxes in this section shall be collected and sent to the authority by the county treasurer as provided in chapter 276. The taxes must be used only to pay the bonds when due. Subd. 6. Authorized securities. Bonds legally issued under this chapter are authorized securities under section 50.14. A savings bank, trust company, or insurance company may invest in them. A public or municipal corporation may invest its sinking funds in them. The bonds may be pledged by a bank or trust company as security for the deposit of public money in place of a surety bond. The authority's bonds are instrumentalities of a public governmental agency. History: 1987 c 291 s 103; 1994 c 416 art 1 s 49; 1995 c 256 s 9; 2002 c 390 s 8 469.103 REVENUE BONDS; PLEDGE; COVENANTS. Subdivision 1. Authority. An economic development authority may decide by resolution to issue its revenue bonds either at one time or in series from time to time. The revenue bonds may be issued to provide money to pay to acquire land needed to operate the authority, to purchase or construct facilities, to purchase, construct, install, or furnish capital equipment to operate a facility for economic development of any kind within the city, or to pay to extend, enlarge, or improve a project under its control. The issued bonds may include the amount the authority considers necessary to establish an initial reserve to pay principal and interest on the bonds. The authority shall state in a resolution how the bonds and their attached interest coupons are to be executed. Subd. 2. Form. The bonds of each series issued by the authority under this section shall bear interest at a rate or rates, shall mature at the time or times within 30 years from the date of issuance, and shall be in the form, whether payable to bearer, registrable as to principal, or fully registrable, as determined by the authority. Section 469.102. subdivision 6. applies to all bonds issued under this section, and the bonds and their coupons, if any, when payable to bearer, shall be negotiable instruments. Subd. 3. Sale. The sale of revenue bonds issued by the authority shall be at public or private sale. The bonds may be sold in the manner and for the price that the authority determines to be for the best interest of the authority. The bonds may be made callable, and if so issued, may be refunded. Subd. 4. Agreements. The authority may by resolution make an agreement or covenant with the bondholders or their trustee. The authority must f"rrst decide that the agreement or covenant is needed or desirable to do what the authority may do under this section and to assure that the revenue bonds are marketable and promptly paid. Subd. 5. Revenue pledge. In issuing general obligation or revenue bonds, the authority @ http://wwW.revisor.1eg.state.mn.us/bin/getpub.php?pubtype=STAT _ CHAP&year=current&chapter=469 7/16/2007 469. Economic Development Page 12 of17 may secure the payment ofthe principal and the interest on the bonds by a pledge of and lien on authority revenue. The revenue must come from the facility to be acquired, constructed, or improved with the bond proceeds or from other facilities named in the bond-authorizing resolutions. The authority also may secure the payment with its promise to impose, maintain, and collect enough rentals, rates, and charges, for the use and occupancy of the facilities and for services furnished in connection with the use and occupancy, to pay its current expenses to operate and maintain the named facilities, and to produce and deposit sufficient net revenue in a special fund to meet the interest and principal requirements of the bonds, and to collect and keep any more money required by the resolutions. The authority shall decide what constitutes "current expense" under this subdivision based on what is normal and reasonable under generally accepted accounting principles. Revenues pledged by the authority must not be used or pledged for any other authority purpose or to pay any other bonds issued under this section or under section 469.102, unless the other use or pledge is specifically authorized in the bond-authorizing resolutions. Subd. 6. Not city debt. Revenue bonds issued under this section are not a debt of the authority's city nor a pledge of that city's full faith and credit. The bonds are payable only from project revenue as described in this section. A revenue bond must contain on its face a statement to the effect that the economic development authority and its city do not have to pay the bond or the interest on it except from revenue and that the faith, credit, and taxing power ofthe city are not pledged to pay the principal of or the interest on the bond. Subd. 7. Not applicable. Sections 469.153. subdivision 2. paragraph (e), and 469.154, subdivisions 3, 4, and 5 do not apply to revenue bonds issued under this section and sections 469.152 to 469.165 if the interest on the revenue bonds is subject to both state and federal income tax or if the revenue bond proceeds are not loaned by the authority to a private person. Subd. 8. Tax increment bonds. Obligations secured or payable from tax increment revenues and issued pursuant to this section or section 469. I 02 are subject to the provisions of section 469.178. History: 1987 c 291 s 104; 2006 c 259 art 9 s 8 469.104 SECTIONS THAT APPLY IF FEDERAL LIMIT APPLIES. Sections 474A.OI to 474A.21 apply to obligations issued under sections 469.090 to 469.108 that are limited by federal tax law as defmed in section 474A.02. subdivision 8. History: 1987 c 291 s 105; 2005 c 10 art 1 s 71 469.105 SALE OF PROPERTY. Subdivision 1. Power. An economic development authority may sell and convey property owned by it within the city or an economic development district if it determines that the sale and conveyance are in the best interests of the city or district and its people, and that the transaction furthers its general plan of economic development. This section is not limited by other law on powers of economic development authorities. Subd. 2. Notice; hearing. An authority shaH hold a hearing on the sale. At the hearing a taxpayer may testifY for or against the sale. At least ten, but not more than 20, days before the hearing the authority shall publish notice of the hearing on the proposed sale in a newspaper. The newspaper must be published and have general circulation in the authority's county and city. The notice must describe the property to be sold and state the time and place of the hearing. The notice @ http://www.revisor.1eg.state.mn.us/bin/getpub.php?pubtype=ST AT _ CHAP&year=current&chapter=469 7/16/2007 4b~. hconormc Development Page 13 of17 must also state that the public may see the terms and conditions of the sale at the authority's office and that at the hearing the authority will meet to decide if the sale is advisable. Subd. 3. Decision; appeal. The authority shall make its findings and decision on whether the sale is advisable and enter its decision on its records within 30 days of the hearing. A taxpayer may appeal the decision by filing a notice of appeal with the district court in the city or economic development districfs county and serving the notice on the secretary of the authority, within 20 days after the decision is entered. The only ground for appeal is that the action of the authority was arbitrary, capricious, or contrary to law. Subd. 4. Terms. The terms and conditions of sale ofthe property must include the use that the bidder will be allowed to make of it. The authority may require the purchaser to file security to assure that the property will be given that use. In deciding the sale terms and conditions the authority may consider the nature of the proposed use and the relation ofthe use to the improvement of the authority's city and the business and the facilities of the authority in general. The sale must be made on the authority's terms and conditions. The authority may publish an advertisement for bids on the property at the same time and in the same manner as the notice of hearing required in this section. The authority may award the sale to the bid considered by it to be most favorable considering the price and the specified intended use. The authority may also sell the property at private sale at a negotiated price if after its hearing the authority considers that sale to be in the public interest and to further the aims and purposes of sections 469.090 to 469.108. Subd. 5. One-year deadline. Within one year from the date of purchase, the purchaser shall devote the property to its intended use or begin work on the improvements to the property to devote it to that use. Ifthe purchaser fails to do so, the authority may cancel the sale and title to the property shall return to it. The authority may extend the time to comply with a condition if the purchaser has good cause. The terms of sale may contain other provisions that the authority considers necessary and proper to protect the public interest. A purchaser must not transfer title to the property within one year of purchase without the consent of the authority. Subd. 6. Covenant running with the land. A sale made under this section must incorporate in the deed as a covenant running with the land the conditions of sections 469.090 to 469.108 relating to the nse of the land. If the covenant is violated the authority may declare a breach of the covenant and seek ajudicial decree from the district court declaring a forfeiture and a cancellation of the deed. Subd. 7. Plans; specifications. A conveyance must not be made until the purchaser gives the authority plans and specifications to develop the property sold. The authority must approve the plans and specifications in writing. The authority may require preparation of final plans and specifications before the hearing on the sale. History: 1987 c 291 s 106 469.106 ADVANCES BY AUTHORITY. An authority may advance its general fund money or its credit, or both, without interest, for the objects and purposes of sections 469.090 to 469.108. The advances must be repaid from the sale or lease, or both, of developed or redeveloped lands. If the money advanced for the development or redevelopment was obtained from the sale of the authority's general obligation bonds, then the advances must have not less than the average annual interest rate that is on the authority's general obligation bonds that are outstanding at the time the advances are made. The authority may advance repaid money for more objects and purposes of sections 469.090 to @ http://www.revisor.1eg.state.mn.uslbin/getpub.php?pubtype=STAT _ CHAP&year=current&chapter=469 7/16/2007 469. Economic Development Page 14 of17 469.108 subject to repayment in the same manner. The authority must still use rentals of lands acquired with advanced money to collect and maintain reserves to secure the payment of principal and interest on revenue bonds issued to fmance economic development facilities, if the rentals have been pledged for that purpose under section 469.103. Advances made to acquire lands and to construct facilities for recreation purposes if authorized by law need not be reimbursed under this section. Sections 469.090 to 469.108 do not exempt lands leased from the authority to a private person, or entity from assessments or taxes against the leased property while the lessee is liable for the assessments or taxes under the lease. History: 1987 c 291 s 107 469.107 CITY MAY LEVY TAXES FOR ECONOMIC DEVELOPMENT AUTHORITY. Subdivision 1. City tax levy. A city may, at the request of the authority, levy a tax in any year for the benefit of the authority. The tax must be not more than 0.01813 percent of taxable market value. The amount levied must be paid by the city treasurer to the treasurer of the authority, to be spent by the authority. Subd. 2. Reverse referendum. A city may increase its levy for economic development authority purposes under subdivision 1 in the following way. Its city council must frrst pass a resolution stating the proposed amount of levy increase. The city must then publish the resolution together with a notice of public hearing on the resolution for two successive weeks in its official newspaper or if none exists in a newspaper of general circulation in the city. The hearing must be held two to four weeks after the first publication. After the hearing, the city council may decide to take no action or may adopt a resolution authorizing the proposed increase or a lesser increase. A resolution authorizing an increase must be published in the city's official newspaper or if none exists in a newspaper of general circulation in the city. The resolution is not effective if a petition requesting a referendum on the resolution is filed with the city clerk within 30 days of publication of the resolution. The petition must be signed by voters equaling five percent of the votes cast in the city in the last general election. The election must be held at a general or special election. Notice of the election must be given in the manner required by law. The notice must state the purpose and amount of the levy. History: 1987 c 291 s 108; 1988 c 719 art 5 s 84; 1989 c 277 art 4 s 64; 1992 c 511 art 5 s 13 469.108 SPECIAL LAW; OPTIONAL USE. A city that has established a port authority by special law or that has been granted the power to establish a port authority by special law, or a city whose city council has been authorized to exercise the powers of a port authority by special law may elect to use the powers granted in sections 469.090 to 469.108. If the election is made, the powers and duties set forth in sections 469.090 to 469.108 supersede the special law and the special law must not be used after the election. The use of powers under sections 469.090 to 469.108 by a city described in this section does not impair the security of any obligations issued or contracts or agreements executed under the special law. Control, authority, and operation of any project may be transferred to the authority in the manner provided in section 469.094. History: 1987 c 291 s 109 469.1081 LIABLE IN CONTRACT OR TORT. Subject to the provisions of chapter 466, an authority shall be liable in contract or in tort @ http://www.revisor.1eg.state.mn.uslbin/getpub.php?pubtype=STAT _ CHAP&year=current&chapter=469 7/16/2007 401}. Economic Development Page 15 of17 in the same manner as a private corporation. The commissioners of an authority shall not be personally liable as such on its contracts, or for torts, not committed or directly authorized by them. The property or funds of an authority shall not be subject to attachment, or to levy and sale on execution, but, if an authority refuses to pay a judgment entered against it in any court of competent jurisdiction, the district court for the county in which the authority is situated may, by writ of mandamus, direct the treasurer of the authority to pay the judgment from any unencumbered funds available for that purpose. History: 1991 c 342 s 13 469.1082 COUNTY EDA OR HRA WITH EDA POWERS IN NONMETRO COUNTY. Subdivision 1. Authority to create. A county may form a county economic development authority or grant a housing and redevelopment authority the powers specified in subdivision 4, clause (2), if it receives a recommendation to do so from a committee formed under subdivision 2. An economic development authority established under this section has all the powers and rights of an authority under sections 469.090 to 469.1081. except the authority granted under section 469.094 ifso limited under subdivision 4. This section is in addition to any other authority to create a county economic development authority or service provider. Nothing in this section shall alter or impair any grant of powers, or any other authority granted to a community development agency, a county housing and redevelopment authority, or any county as provided in section 383DAl; Laws 1974, chapter 473, as amended; or Laws 1980, chapter 482, as amended. Any county that has granted economic development powers to a community development agency or a county housing and redevelopment authority under any of these provisions may not form a county economic development authority or grant a housing and redevelopment authority the powers specified in subdivision 4, clause (2). Subd. 2. Local committees. Upon notice to all local government units and development agencies within the county, a county may adopt a resolution to create a committee to recommend options for a county economic development service provider. The committee shall consist of no fewer than 11 and no more than 15 members appointed by the county board. At least one city official, at least one housing and redevelopment official, and at least one township official from the county to be served by the county economic service provider shall be included on the committee. Members may also represent school districts, political subdivisions that currently provide services under sections 469.001 to 469.047 and 469.090 to 469.1081. nonprofit or for-profit housing and economic development organizations, business, and labor organizations located within the county. Political subdivision representatives must be selected by their local governments and must constitute at least 50 percent of the total committee membership. The county may appoint no more than two county commissioners. The committee shall select a chair at its initial meeting. Subd. 3. Committee report. The committee shall issue its report within 90 days of its initial meeting. The committee may request one 60-day extension from the county board. The report must contain the committee!s recommendation for the preferred organizational option for a county economic development service provider, including the distance from the boundary ofthe city that may be controlled by each affected city in subdivision 5. The distance may not exceed two miles from the city boundary. The report must contain written findings on issues considered by the committee including, but not limited to, the following: (l) identification of the current level of economic development, housing, and community fY http://www.revisor.1eg.state.mn.us/bin/getpub.php?pubtype=STAT _ CHAP&year=current&chapter=469 7/16/2007 469. Economic Development Page 16 of17 development programs and services provided by existing agencies, any existing gaps in programs and services, and the capacity and ability of those agencies to expand their activities; and (2) the recommended organizational option for providing needed economic development, housing, and community development services in the most efficient, effective manner. Subd. 4. Organizational options. The committee may only recommend: (I) establishment of a county economic development authority to operate under sections 469.090 to 469.1081, except that the county shall not have the powers of section 469.094 without the consent of an existing county housing and redevelopment authority operating within that county. For the purposes ofa county economic development authority's operation, the county is considered to be the city and the county board is considered to be the city council; (2) requiring an existing county housing and redevelopment authority or multicounty housing and redevelopment authority to operate under sections 469.090 to 469.1081; (3) that the county pursue special legislation; or (4) no change in the existing structure. Subd. 5. Area of operation. The area of operation of a county economic development service provider created under this section shall include all cities within a county that have adopted resolutions electing to participate. A city may adopt a resolution electing to withdraw participation. The withdrawal election may be made every fifth year following adoption of the resolution electing participation. The withdrawal election is effective on the anniversary date of the original resolution provided notice is given to the county economic development authority not less than 90 nor more than 180 days prior to that anniversary date. The city electing to withdraw retains any rights, obligations, and liabilities it obtained or incurred during its participation. Any city within the county shall have the option to adopt a resolution to prohibit the county economic development service provider created under this section from operating within its boundaries and (I) within an agreed upon urban service area, or (2) within the distance approved in the committee report referenced in subdivision 3. If a city prohibits a county economic development service provider created under this section from operating within its boundaries, the city's property taxpayers shall not be subject to the property tax levied for the county economic development service provider. Subd. 6. City economic development authorities. If a county economic development service provider has been established under this section, existing city economic development authorities shall continue to function and operate under sections 469.090 to 469.1081. Additional city economic development authorities may be created within the area of operation of the county economic development service provider created under this section without the explicit concurrence of the county economic development service provider. Subd. 7. Continuation of existing county and multicounty housing and redevelopment authorities. Existing county and multicounty housing and redevelopment authorities shall continue to function and operate under the provisions of sections 469.001 to 469.047. Subd. 8. Nine-member boards authorized. In addition to the board options under section 469.095. a county economic development authority may have a nine-member board. If the authority has a nine-member board, at least two members must be county commissioners appointed by the county board. Of the county economic development authority board members initially appointed, two each shall be appointed for terms of one, two, or three years, respectively, and one each for terms offour, five, or six years, respectively. Thereafter, all authority members shall be appointed for six-year terms. @ http://www.revisor.1eg.state.mn.us/bin/getpub.php?pubtype=STAT _ CHAP&year=current&chapter=469 7/16/2007 469. Economic Development History: 2000 c 484 art 1 s 4; 1Sp2005 c 1 art 4 s 106; 1Sp2005 c 3 art 7 s 10 http://www.revisor.1eg.state.mn.us/bin/getpub.php?pubtype=STAT _ CHAP&year=current&chapter=469 Page 17 ofl? S6 7/16/2007 (]) 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: Discussion on Prevailing Wage on Construction Projects DATE: July 24, 2007 INTRODUCTION Pursuant to direction at the April 3, 2007 Council meeting, staff has assembled data for the Council to review relative to whether or not the City of Andover would require prevailing wage on City construction projects. DISCUSSION Staff has been in contact with local Union organizers asking them to provide documentation in support of the request made at the April 3rd Council meeting. Union Organizers, Ken Martin and Victor Razinski (both will be at the workshop meeting) have provided the following attachments for Council review: Page 2 Pgs 3-6 Pgs 7-9 Pgs 10-23 Pgs 24-39 Pgs 40-43 Pgs 44-45 Why Prevailing Wage Ordinances are Good for Local Governments City of Fridley Ordinance on Prevailing Wage City of Coon Rapids Ordinance on Prevailing Wage Prevailing Wage Power Point Presentation Davis Bacon Works - Prevailing Wage Laws are Good for America What Does the Prevailing Wage Mean to Minnesota? History of Davis Bacon Act Staff also has available two other studies available for Council review evaluating prevailing wage in Minnesota. One study was funded by the Quality Construction Coalition (116 pages), the other was prepared by the Minnesota Office of the Legislative Auditor (107 pages). These studies are on file in the City Administrators Office. Currently the City of Andover complies with the State Statute on projects that include State and Federal funds and requires prevailing wage on those projects. The City also requires prevailing wage on high profile projects, most recently the Community Center. City Staffwill be present at the meeting to assist with the discussion. ACTION REOUESTED Receive a presentation from Staff, Ken Martin and Victor Ruzinski and provide direction to City Staff on whether or not staff should pursue this topic further. '-- Attachments WHY PREVAILING WAGE ORDINANCES ARE GOOD FOR LOCAL GOVERNMENTS ~ Why should local governments pass prevailing wage ordinances? Prevailing wage ordinances provide local governments a quality construction workforce, allow for investment in our own communities, and create stronger local economies. By paying the going rate in the local community, local governments ensure good quality construction, attract highly skilled labor, and encourage contractors to hire locally. ~ What is the prevailing wage? The prevailing wage is the hourly basic rate of pay plus other benefits (such as health insurance and pension payments) that is paid to the largest number of workers engaged in the same class of construction labor within the local community. ~ Do local governments have the authority to adopt prevailing wage ordinances? Yes. Minnesota state law allows municipalities and school districts to adopt their own prevailing wage ordinances. In fact, several Minnesota cities, counties, and school boards have already adopted prevailing wage ordinances, including: Coon Rapids, St. Cloud, Anoka/Hennepin School District, and Hennepin County. ~ Are prevailing wage laws common? Yes. In addition to the Minnesota cities, counties, and school districts that already have prevailing wage ordinances, the State of Minnesota, the federal government, and over 30 states have their own prevailing wage laws. ~ Do prevailing wage ordinances increase construction costs? No. Studies have shown that prevailing wage laws do not have a statistically significant impact on public construction costs. ~ What are the benefits of prevailing wage for local governments? o Ensure high quality work - When prevailing wages are paid, skilled workers are on the project, deadlines are met, and there is a decrease in on-the-job injuries. o Stimulate the local economy - Good-paying local jobs means workers are more likely to spend their money in their own communities, which generates a ripple effect in the local economy. o Save taxpayer money for medical care - Prevailing wage ordinances allow workers to pay for medical care and provide for their own retirement, avoiding a financial drain on taxpayers. Prevailing wage ordinances have also been shown to increase tax revenues. o Provide iobs for local workers - By paying the prevailing rate in the local community, local governments encourage contractors to hire locally instead of bringing in low-wage workers from other places. o Fill a gap in state law - State law does not apply to locally funded jobs, so local governments must pass prevailing wage ordinances to ensure that they, and workers in their community, realize the benefits of prevailing wage. ~ Do prevailing wage ordinances benefit workers in local communities? Yes. Some of the benefits of prevailing wage ordinances include: paying good wages so workers can provide for their families, increasing the number of workers who have health care coverage, increased rates of apprenticeship training, higher minority participation in training programs and lower minority unemployment in the skilled trades; and lower on- the-job injury rates. @ ORDINANCE NO. 1095 AN ORDINA1'ICE Of THE CITY OF FRIDLEY, MJNNESOTA, ADOPTING THE PREVAJLJNG 1-I0lJRS OF LABOR AND PREVAILING WAGE RATE ON CERTAIN PROJECTS FOR OR WlTH THE CITY The Ciry Council of the Cify of Fridley does ordain as follows: Subdivision]. Legislative Findings. The City of Fridley finds illO be in the best inlerest of its citizens that buildings and public works projects constructed \\~th City funds be consnucted and maintained by the best means and highest qualiJ:' oflabor reasonable available, and that persons working lUlder contract on buildings and public \\'orks collSlructed in whole or in paIl ,,~th City funds should be compensaled according to the real value of the services they perform which, for purposes of this Ordinance, is defined as me prevailing wage and hours of employment as detemuned for the City by the Minnesota Department of Labor aJld IndUSlr}', pursuanlto Minnesota Statutes, Section 177.42, subd. 6. Subdivision 2 Prevailing Wage aJJd Hours on Certain City-related or funded Projects. a. Wages paid for all work performed by contractors and subcontractors thai is financed in whole or in part by funds obtained by bonds issued by the. City, including but nOI linuted 10 InduSlrial Revenue Bonds, and all projeclS let after May I. 1997, financed by General Obligation Ta1< Increment Bonds shall be paid in accorcL:mce \\;th the prevailing wage and hourly rale. b. Wages p:lid for :III work performed by contractors and subcontractors on any project let after May J, 1997, thai is financed in whole or in paIl by City funds shall be paid in accordance Ilith the prevailing wage and hourly rate. c. Wages paid for all work performed on any project for a Developer in conjunction with the Developer's development of real propeny in the City if the Developer purchases said real Plopeny from the City, or if the City grants or loans money 10 the Dcveloper for the development of said real property, shall be paid in accordance \\ith me prevailing wage and hourly rate. d. The Lerm "City" shall refer to me City of Fridley and to all related agencies, including, but not limited to all Housing and Redevelopmenl Authorities and Economic Development Authorities created by the City of Fridley. Subdivision 3. Exceptions. This ordinance shall not apply La the following circumstances: a. An)' project financed by City funds or bonds authorized by the City as provided in subdivision 2 thaI has a value of $25,000.00 or less or a value equal to or less than the amount required for sealed bids by Minnesota Statu1es, Sect.ion 471.345, subd.:3. b. Any housing projecL or program within the City directed 10 or marketed for O\\'l1er occupancy. xc. Any housing project or program directed at rental units containing eight or fewer units. d. Any residential rehabilitation project regardless of size, entirely paid for lvith non-City funds. PASSED AND ADOPTED BY 1HE CITY COUNCIL OF THE CITY OF FRlLDEY illS STIi DAY OF MAY, 1997. NANCY J. JORGENSON - MAYOR ATTEST: WILLIAM A. CHAMPA - CITY CLERK First Reading Second Reading Publication March 31, 1997 May 5, 1997 May J5, ]997 (j;) ~,... ^ td~t:"'I A nnr\ _-1~ RESOLUTION NO. 38 - 1997 A RESOLUTION OF THE CITY OF FRIDLEY, MINNESOTA, FOR THE ADOPTION OF A POLICY AND CONTRACT LANGUAGE II~LEMENTING THE PROVISIONS OF ORDINANCE NO. 1095, PROVIDING FOR THE PAYMENT OF PREVAILING WAGES ON CERTAIN PROJECTS AND CONTRACTS WITHIN THE CI TY WHEREAS, the City of Ordinance, Number l09S, to worker s wi thi n the circumstances; and fridley, Minnesota, has adopted a certain providing for the pa~nent of the prevailing wage City under cer:ain specified conditions and "'HE:REAS, the City of Fridley, Minnesota, wishes to provide specific guidance to the public and its own employees, as well as contractors and others doing 0::: wanting to do business with or in the City, as to how it expects the aforesaid Ordinance to be implemented in contracts and work governed by the Ord:nance; NO\~, THEREFORE, BE IT RESOLVED, that the City of Fridley ado;Jts as its policy concerning all bids and contracts governed by the aforesaid Ordi nance that the following language, ei ther fully or by express :reference to the aforesaid Ordinance and this Resolution, shall be included in all such bids and contracts, and that this same language shall operate as the ongoing policy of the City of Fridley with respect to any such bids and contracts: PAYMENT OF PREVAILING WAGES. The Contractor agrees that the Contractor' s 1 aborers and mechanics and any subcontractor's, of any tier, laborers and mechanics who work on this project and who fall within any jOb classification established and published by the Minnesota Department of Labor & Industry shall be paid, at a minimum, the prevailing wage rates as certified by said Department. Lach Contractor and subcontractor of any tier performing work on this project shall post on the project the applicable prevaili~g wage rates and hourly basic rates of pay for the County or area within which the project is being performed, including the effective date of any changes thereof, in a least one ; conspicuous place for the information of the employees working on the project. The information so posted shall include a breakdown of contributions for health and welfare benefits, vacation benefits, pension benefits and any other economic benefit required to be paid. Definition. The definition of prevailing wages shall 5.2 (m) . "laborer" and "mechanic" used in be that definition contained in connection 29CFR Part 2. Submission of Payroll. a. Upon request of the City, the contractor and subcontractors, if any, shall submit to the City, weekly for each week in which any contract work is performed, a copy of all payrolls. The payroll submi t ted shall set out accura tel y and completely all the information required to be maintained under Section 5.5(a) (3) (1) of regulations, 29 eFR Part 5. @ he~oJUlion No 38-1997 Po~,. 2 b. Each payroll submi~ted shall be accompanied by a "Statement of Compl i ance" si gned by the contractor or subcontractor or her agent who supervises the payment of the persons emp]oyeci under the contract and shall certify the following: (1) That the paYToJJ for the payroll period contains information of the type required to be maintained under Section 5.5 (a) (3) of regulation 29 CFR Part 5, and that. such information is correct and complete. (2) That each laborer or mechanic (including each helper, apprentice and trainee) employed on the contract during the payroll per:od has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned. (3) That each laborer or mechanic has been paid not less than ..he applicable wage rates and fringe benefits or cash equivalent for the classification of work performed as specified in the applicable wage determination incorporated into the contract. (4) The contractor or subcontractor shall make the records required under this paragraph available for inspection, copyi ng or tr anscd pt i on by the ci t y and shall pe::-mi t the City to interview employees during working hours on the job. :f the contractor or subcontractor fails to submit the required records and make' them available, the ci ty may, after wri tten notice to the contractor, take such action as may be necessary to cause the suspensi on of furthe: payments, advance, or guarantee of funds. 3. Violation: Liability for Unpaid Wages. In the event of any violation by the contractor or subcontractor relating to the prevailing wage provision in this contract, the cont.ractor shall be liable. for the unpaid wages. 4. Withholding of Unpaid Wages. The City of Fridley may, upon its own action, withhold or cause t.o be withheld from any monies payable on account of work performed by the contractor or any subcontractor such sums as the City may determine to be necessar y to sati s fy any Ii abi 1 i ti es of such contractor or subcontractor for any unpaid wages as required herein. 5. fringe Benefits. The Contractor and subcontractor shall pay fringe benefits in the manner and in accordance with the 1964 amendments to the Davis-Bacon Act (Public Law 88-349) and the implementing regulations contained in 29 CfR, Subpart B, 5.20, et seq. 6. Liquidated Damages. If the Contractor or any subcontractor its laborers and mechanics prevailing wages Contractor shall be liable to and pay to of any "tier does not pay as provided herein, the the City, as liquidated €) ~r-^ P\.I-:J!!:"')A "f\" ............,: '.Resolu';on No. 38.1997 Page 3 damages, a sum equal to five percent (~~.) of the contract amount. The City may deduc: any money due or com~ng due to the Contractor such sums as the City r,ay deter:nine to be necessary to satisfy any liability of the Cont~actor to pay liquidated damages as provided herein. Any monies collected or deducted are not tc be construed as penalty but as Jiquidated damages to compensate the County for the Contracto~'s and/or subccntractor's failure to pay prevailing wages. The rights and remedies provided tor in these specifications sha]j be in addition to and :Jot a limitation of any rights or remedies otherwise available at Jaw. In any lawsuit involvir.g assessment or recovery ot liquidated damages, the reasonableness of the charges therefore shall be presumed, and the amount assessed shall be in addition to every other remedy now or hereinafter enforceable at law, in equity, by statute or under the contract. 7. Termination of Contract. A violation of any of the above-stated provisions in a contract governed by the Ordinance shall constitute a substantial breach of that contract and shall constitute grounds for termination. ?ASSEO AND ADOPTED BY THE CITY COUNCIL or THE CITY or FRIDLEY THIS 5TH DAY OF MAY, 1997. ATTEST: NANCY J. JORGENSON - MAYOR WILLIAM A. CHAMPA - C!1Y CLERI~ @ . H.-600 Prevailing Wage Regulations Page I on CITY OF COON RAPIDS, MINNESOTA CHAPTER 12-600 PREVAILING WAGE REGULATIONS 12-601 Definitions. For purposes of this Chapter, the following words and phrases shall have the meanings ascribed to them in this section: (1) Basic Hourly Rate. The hourly wage paid to any employee. (2) Prevailing Wage Rate. Shall have the meaning contained in Minn. Stat. 9 177.42, Subd. 6, as determined for the area including the City of Coon Rapids by the Minnesota Department of Labor and Industry. The Minnesota Department of Labor and Industry shall determine the prevailing wage ~pte in accordance with 9 177.41 et seq. and applicable rules, including but not limited to Minnesota Rules 5200.1000 et seq. (3) Apprentice. A person employed and registered in a bona fide apprenticeship program registered with the U.S. Department of Labor or with a state apprenticeship agency. "Apprentice" shall also include a person in the first ninety (90) days of probationary employment as an apprenti<;e who is not registered in the program but who has been certified by the U.S. Bureau of Apprenticeship and Training or a state apprenticeship agency or council to be eligible for probationary employment as an apprentice. (4) Project. Erection, construction, reconstruction, remodeling or demolition of City streets, utilities, storm drains, buildings or parks where the City is a party to the construction contract. Project shall not include contracts for the purchase, rental or repair of motor vehicles or other equipment or personal property, or maintenance contracts or any work performed pursuant thereto including contracts for the maintenance of I equipment or personal property or for the routine maintenance or repair of City streets, utilities, storm drains, buildings or parks. .Activities involving the insertion of public funds, such as tax increment financing, shall not be considered a project under this Chapter unless the City is a direct party to the construction contract. (5) Laborer, Mechanic. All persons utilized, employed or working on a project who are doing work usually done by mechanics and laborers, including proprietors, partners, and members of cooperatives. 12-602 Wage Rates and Hours for City Projects. (1) Any contract which provides for a project of estimated total cost of over $25,000 shall contain a stipulation that no laborer, mechanic or apprentice employed directly upon the project work site by the contractor or any subcontractor shall be permitted or required to work at a rate of pay less than the prevailing wage (j) http://www.cLcoon-rapids.mn.us/citycode/chapter../o2012/12600%20prevailingwage.htm 5/8/2007 <::rA~':l,"?A nnn ...rlf ,12~600 Prevailing Wage Regulations Page 2 on rate. (2) All contracts for City projects shall have applicable schedules of prevailing wage rates set forth In the contract. Schedules of applicable prevailing wage rates shall be present on all project job sites and shall either be posted on the site or be on the person of any supervisor in charge of the job site. (3) Upon request of the City, any contractor or subcontractor working on a project shall furnish the City with a copy of all payrolls relating to the project. Such payroll reports shall be submitted on U.S. Department of Labor Standard Forms or their equivalent to the employee of the City in charge of supervising contract performance. Payroll so submitted shall include the classification of each employee and shall set out accurately and completely all the information required to be maintained under 29 C.F.R. part 5, section 5.5(a)(3)(1). (4) No contractor or subcontractor working on a project shall evade or attempt to evade the provision of this section through the use of non-recognized training programs. The only employees involved in training programs that shall be allowed to work on projects covered by this Chapter shall be apprentices as defined by this Chapter. 12-.603 Applicability. This Chapter shall not apply to contracts from projects where the total estimated cost of the project is less than $25,000; nor to employees who do no more than deliver materials to the work site, except that this Chapter shall apply to employees who deliver asphalt, concrete or mineral aggregate such as sand, gravel or stone where such material is incorporated into the project by depositing the material substantially in place, either directly or through spreaders, from the transporting vehicle. 12-604 Violations and Penalties. (1) The contractor shall be the responsible party to ensure the payment of prevailing wages by the contractor or by any subcontractor employed and/or performing work as a part of a mUlJlicipal improvement. (2) 'The contractor or any subcontractor who violates the prevailing wage provisions of the contract shall be liable directly to the underpaid laborer or mechanic for the unpaid wages and the contractor or subcontractor, by agreeing to perform work on the project, agrees that laborers or mechanics have such a cause of action against the contractor or subcontractor. (3) Failure to pay prevailing wages may result in contract payment delay, cancellation of the contract, and/or payment of a fee of up to five percent (5%) of the entire contract price to the City as liquidated damages. (4) On receipt of a written complaint alleging a violation of this Chapter filed with the City Clerk or on its own Initiative, the City may refer the complaint to the Minnesota Department of Labor and Industry to determine whether there has been a violation of this Chapter. In the event that the Minnesota Department of Labor and Industry declines to conduct such an investigation, the City may elect, in its own discretion, to either investigate the matter or refer It to an independent Investigator. The City @ http://www.ci.coon-rapids.mn.uslcitycode/chapter%2012/12600%20prevailingwage.htm 5/8/2007 SCAN3524_000.pdf . 12-600 Prevailing Wage Regulations Page 3 on and the Minnesota Department of Labor and Industry shall have the right to interview during working hours any employees whether employees of the contractor or any subcontractor. (5) Any person violating the provisions of this Chapter shall be guilty of a misdemeanor with each day of violation constituting a separate offense. In addition, if the prevailing wage rate is not paid to employees working on a project, the City of Coon Rapids may withhold contract payments to the contractor until such deficiencies are corrected. 12-605 Effective Date. This ordinance shall take effect and be in force from and after its passage and publication. [Adopted 3/8/00, Ordinance 1690] @City of Coon Rapids 2005 - Contact Us Due to the possibility of unauthorized modification of electronic data, elTOrs in transmission, HTML browser incompatibilities, and other aspecls of electronic communication that are beyond our control, infonnation contained in the City of Coon RapidS Web Site should not be considered suitable for legal purposes. Information may have been updated since the last modification of this site. Contact the City of Coon Rapids at 763-755-2880 to verify accuracy. @ http://www.ci.coon-rapids.mn.us/citycode/chapter%2012/12600%20prevailingwage.htm 5/8/2007 PREVAILING WAGE Richard Anfang, President Minnesota State Building and Construction Trades Council What is Prevailing Wage? · The prevailing wage rate means the hourly basic rate of pay plus the contributions fOT health and welfare benefits, vacation benefits, pension benefits, and any other economic benefit paid to thelargest number of workers engaged in the same class of labor within the area. The prevailing wage may not be less than a reasonable and living wage. Minn. Stat. Sec. 177.42, Subd. 6. 1 \0 ~~/~V/V~ ~v.~f rnA V~4 VV~ OV4Q I1J..1 J.....I..oJ..:>1' V ......I".L......~~ . The law requires prevailing wage to be paid on all projects fmanced in whole or in part by state funds_ . State law authorizes municipalities to adopt their own prevailing wage laws. Prevailing wage laws level the playing field. · The goal of the federal Davis-Bacon Act (passed in 1933) was to establish the wage rate that was already being paid in the community, and to prevent contractors from bringing low paid workers into a community and undercutting established wages. ~VV'''I ......." 2 \\ Should All Redevelopment Authority Projects Require Contractors to Pay Prevailing Wage? YES! But Won't Costs to Taxpayers Increase? NO! 3 \} But Anti-prevailing wage groups claim a cost reduction of 6% to 20% if prevailing wages are not paid. . . NOT TRUE! Studies have shown that tlJere is no savings to taxpayers when prevailing wage laws have been repealed or suspended. Cost of New Schools in Michigan Before and After Prevailing Wage Act Suspension $110.00 $105.00 5100.00 I!J :During Suspension II After SuspeDsiOIJ B Colmnn 3 $95..00 $90.00 $85.00 <:p-o) roJ'''O' ~ ,// ~ ~ </''- ~~ >1'''fIi ~.Jt 4 \~ ~ VVVI v........... What Happens to State Budgets When Prevailing Wage Laws are Repeal ed? $4,000,000 $2,000,000 SO ($2,00tl,OOO) ($4,000,000) ($6,000,000) ($8,000,000) ($10,000,000) ($12,000,000) IilI Saved G>.t lilI Lo.t :ReveDtI~ B Net ED'ecl UIllh W;$Co"~n Why does the "cost saving" promises of prevailing wage opponents prove false? . Savings estimates are based an hypathetical calculations, .often times.assuming labaT costs to be 20% higher than they actually are; · Labor productivity is not constant when wage rates fall Skilled and experienced warkers leave far better jobs; 5 \\.\ · Lower wage rates reduce incentive for individuals to enter construction field and training declines, reducing the pool of skilled and available workers; · The available labor force is younger, less experienced, less trained, less productive; · Project deadlines are not met~ · More workers must be hired. to complete a project; · Project work needs to be redone; · Increase in on-the-job injuries. 6 ,,- \~ ~VVQI V..J.U Paying Prevailing Wage is the Key to a Community's Economic Prosperity What happens wIlen prevailing wages are not paid? - According to Dr. Lisa Jordan, . Director of Gender and Diversity Programming in the Industrial . Relations Center of the Carlson School of Management at the University of Minnesota. '.'. 7 \L Empirical Studies that considered the impact of a weakened or repealed state prevailing wage law found . . . - Wage rates paid to ALL workers. declined; - Significant project cost ovemms; - Lower quality construction; ,- Apprenticeship training declined; -Increase in occupational injuries and costs for workers' compensation; - Lower minority participation in training programs and increased minority unemployment in the sldlled trades; - Reduced tax revenues available to the state's governments (workers have less money, so they buy less). 8 \1 For Example: .. In Kansas, after repeal of the prevailing wage law, - Wages fell by 10% - Benefits fell by 17% - Apprenticeship training fell 38% - Serious injuries rose by 21 % - AND there was NO measurable cost savings on public construction. .. In Utah the prevailing wage law was repealed, as it was thought that the State would save 10-20% on construction costs. .. Instead, any project cost savings were ovetwhelmed by: - Decline in overall income, resulting in the State losing millions of dollars in income and sales tax; 9 \4, - Cost ovemms in the millions; - Increased drain on government/tax payers due to workers no longer having adequate health insurance or pension benefits; - Training programs eliminated by 40%; and - Increase in on-the-job injuries and increased costs for workers' compensation. What happens when prevailing wages are paid? . Skilled workers are on the project; · Deadlines are met; · Money is invested in the worker who reinvests it in the community; · Workers are able to pay for quality medical care and to provide for their own retireme:o:t, reducing or eli.minating .financial drain on the government and the taxpayer; ~V.1."" v........... 10 \q .. Workers are tramed in apprenticeship programs funded by private monies not state ftmds; .. Increased minority participation in training programs and skilled trades; .. Decrease it] occupational injuries; .. Increased tax revenues. I What Does it All Mean? . Good Wages . Fair Work Conditions . Quality Workforce . Higher Tax Revenues .. Good Business . Fair Competition . Quality Construction . Stronger Local Economy 11 (}o In Short . . . · The stronger the prevailing wage laws, the greater the benefits for the community. Bibliography . Comments to the Minnesota House Committee March 3, . 1999, Lisa Jordan, Ph.D., Professor, Labor Education School, University of Minnesota; . . Prevailing W8.i?e Laws, by Peter Philips, Ph.D., Professor . of.J~conomics> University of Utah, Presentation before the PrevailingWage.SymppsiUDJ, Lansing, Michigan, March /1999; ....... -Kansas and Prevailing Wage Lecislation., February 20, ] 998, Peter Philips, Ph.D., Professor of Economics, University of Utah; 12 C/\ . Overview of Recent Studies on Prevailing Wage prepared for the Minnesota Department of Labor and l11dustry, Labor Standards Division, ] 998; . Prevailing Wage Laws and the California Economy. by Michael Reich, Ph.D, Professor, Institute of Industrial Rela.tions, University of California at Berkeley, February 1996 . Losing Ground: Lessons from the Reveal of Nine "Little Davis-Bacon" Acts. February 1995, by Peter Philips, Garth Mangum, Norm Waitzman, and Anne Yeagle, a Working Paper, Economics Department, University ofUmb; . Prevailing Wage Laws in Construction: The Costs of ReDeal to Wisconsin, by Dale Belman, Associate Professor of Economics and Industrial Relations, University of Wisconsin at Milwaukee, and Pawa R V 005, Professor of Economic, University of Wisconsin at Madison, October 1995; "'t=l"....." ............. (3 fQ~ The Economic Impact of Prevailing Wage Requirements in Minnesota. by Mike Walter, 1992, Industrial Relations Center, Carlson School of Management, University of Minnesota /4 C07 QL) ,..- 9~ DAVI5.aACON builds success \Vhen tllC NoTthridge earthqll'lkc rockcd southern Cllifomi'l in e:lrlr 1<.194, it had a devastating imp,1(t on the st'lIe~ economy and infnlsrruCl1Jre. Onc of thc h\lsie_~1 road- ways, the S'll1ra;\'lonicl Frecwa}', partially collapsed. However. within rccord time--<>nly 76 days 'lfter tht. ~h:lttcr- ing quake-the crippled freeway was reopencd If) ualltl". How did dlis happen: An experienced contT:lClor work- ing I'M Ihe Stale of California called on a highly skilled ",',rk force to rebuild the Santa ;\lonica Freeway ahead of sched- ule and under budget. \v1.1at does this h:1\'e to do \lith prevailing wages Ihrough the Davis-Bacon Act? Everything! The contractor, go\'ern- mem project managers, and economists agree ... prevailing wage laws werevitll 10 this success story. The contractor was able to bid the joh knowing he could draw from a pool of well-trained workers to get the job done. By helping to maintain a decent stJlndard of living fur union ,md nommionworkers alike, Dal-1s-Bal."On promotes gte.1ter productivity, rostweffectjve oollStfUcrion,qualiry infrastruc- ture, and a stalJle economy fur American communities. Quality consuuttion d~pends on well-trained consuuc- tion workers. Workers experienced in rheir crafts and in health ana safety procedures are less likely to make mistakes and, hence, are more productive. So too, in the wake of the Oklahoma City bombing, sl..-illed const:nlction workers were ClIJed to the site immedi- ately to dear away rubble and seardl for victims in the feder- al blli/ding. Because ther 1mew what they were doing, these workers caused no further damage and were not injured doing haZllrdous rescue work. It shouldn't tlke a disaster for us 10 recognize the benefits of the Davis-Bacon Act. These benefits are all around U5- from our schools and hospirJls 1.0 our h.ighways and waste water treatmem plants. Such well-consffilcledprojects, oftt'n mken for granted, result in p;lrt from Davis- Bal"On's prOtec- tion of J)r~':IiJjng wage$ and labor standards nationwide. Here~ another success slory. "When it came time to drill 37 oil wells in Louisiana's Paul). RoJine}' SllJlct\lary, building trades construction workers eJrnillg preva.iUng wages com- pleied the job without hanning surrounding wildlife-geese, PREVAILING WAGE LAWS ARE GOOD FOR AMERICA JJR- etaining the . DavJ$-!BiKon ikt and our prevailing w.ag~hwl$ isni'tical to l'l~ plJblk-pl'ivat.e paftrl~~hi:p which h.aswQrked.Si} \Yellin devel-oping oilr pubHr jnfrastrortJ.3i/'e". We (ao ajl-r~$t a little . .:_::_"'_,S~{::""_:_>__ _ ' . e~leT kn9wing th~t tJleil~tlmeth~ earth moves, we stm have the skilled nm- · tractors and tOllstruC- tilm work€Jf5 fll?eded . t9get the job done,'" q(; duek,. "n'r. .lIJd li,j',. ,illlhc' ~1,.i!I)O-'HT.. nJu~... It was IT;til':)1 II):!t Ih,. WI.1l111"1 di,,,,r1, IIlL' "L"lA(j!-:i("ajIJ~1I1'lui"I:, '.>f lh.. :\"alinll.ll.\udllJ"JI1'!"UI1 'UH"llIary, Ii \\";1, jll" .a, illlporlanr In pro"IIIl'" j..>I" l"r I1l'ark ,'''lllI1Hmiti''.'.lkcllN' ,,r 111<,: pf'" \"lilllli! \\":I~" 1:1\1', I h.. 1>"'1 p""jI ,Ie "nrk..rs gill Ilw j"h. ..\nd il \\orl:l'1J' ']lI.. IHI ,,<'iI, ,111.; ,,1111 "t'n l'I.>I11pln ill" "l,khr:n. I.'I,J '5 ~l";lJ"'\ ;)\.J rrii'lIll:' t/l"killrd ('I Jll.''lnh'I'ion \\'orkt'r- pr(). Il'cted hI' J):l\'j,.lbnJlt DAVIS.BACON IS 17JJjJ0'l11771t to all,A71u;rj(/l77S Prl'\~lilin!! W:l,l!<' I:m, rl'lJnirl' Icdel'al-pro;ect I'OI1IT:H:WrS 10 p:IY wnrkers cnrr'cnr r:llCS in till' ronllllnn;ly where thc fcdc'I':Jlly Jimd. ('.I proj....t is under (~)n5tnIClion. This prc-\'enls ('olltl"attnrsli'ollJ winning feder:!l prn;"r:rs by imponing lo\\'er- waged workers into com- munities or ,h;Ying .1')\\'11 the wllges ofloC'JI workers. The 65-ye.lr-o]d ])a~;s- Bacon Act \\',IS sponsored by Republicll1 mcmbers of Cnngre~":\ :1Ilt! sig-ned by Hcpub- lican Presidenl Hcrhen Boon:!". Its philosophy-to ro1 J)I'l.\,\.'I1III1(: tl'.k'ral !!1)\'ernll1ellt\ It Ii Hll_Jpoli;-,'i\: Ill)\\l-r !'!"Ilil! L"rudjll~ dH.: fi\ill~ ;-.l;lf!,bnb of lTlillion~ crf '\J])~,:ril.-.Hl"-._-'" .l'" \:Jlid 1,,,Ln' :IS il \\;1.\ \\1ll'l1lh(' bw "'IS t'11;Ktt'd jn I'), I. III ofhl'r wor:h. it kl't.pS I}i,!! ~n\.\.~J.l1lJh~~nt and hi!! husJnl.':-'s frl)Jn llllde:'rrulliog.luc;ll eDOlf,Kfp!".... I.)('al \\'orkt.:r,:. ~ln" IOl',ll lTI)lll>ll11l:,). .\1.."1 illlpon"I1I, "s "dlt' Bill ..f l{igllls ). ,r rh,' :\I11"rll.l11 \\l)rh,r," J),n;s-Bac(>11 !,'unr,lI)lccs o1/) hl,lIlt's! chy\ P"~' fur an hones! (!;Jr', work-:md Ihis is \I hM rhe :\111('1"1('111 dre,Il11 i, ;111 :llmul! HOW DaVl~'l-BaC077 7.vorks.' Ll)C:l1 Cl)IH.lj(jl)l!S are !h" touchstone (,fprc\'aiJin)! \\;l.~" b"" On c:1eh proiccr slIbjc,'! 10 ))'J\'is-RKon, jus I 'ls g"Wntlll'lll csril1l:Jlors cSlablish c:\pct."t(CtllocnJ prices for materi'll" :lnt! equipment:. lher ;llso o1(l\"isC' eOl1lr:lCWrs <1houlloc'! ""g'- 'ln,l bendit nonn,. Conlr.KlolS submil their hids, J.:11()wing Iheir cOlnpcliwrs l11USr also p.l~' at le,]sr these minimum wa;:,' :1Il.! lx'nditle,-ds. D'l\"is-nacon lIses the exi,ting private eOllsrrunill1l IlUr- ket: ", a yanlstid; I;)r scuillg wages all.! benefits. II "''1ll1r,', that. (cdeml comr:lCtors .Iive IIp ro these st:md:mls '111<1 pby In 10c;!1 L'collornic rules. PREVAI.LING WAGE LAWS 7nake public-policy sense Al the Sl:J[e !t-1'c1, "litTle J),nis-}3:1wn" pre"<1iJing wage Ia,,"s '-'" the saIne: #rhey s:n'c Sl';ltt~ gOVCl'nnlCnlS J11011C'Y. .<It!\';lnCl' t;-<..'\.'- nurkel principles, ;md prot.ecr 10e:!1 "'hOlr Illnrkets from harm- hll effects of klrgt'..~ellc gm'cnlmcl1l.-flJlldcd consll1lerioll. :'-Ie\\' economic rest':uch from the Stare Uniwrsi[\" "I' New York-Cord:lOrI compares the costs uf sl:ltc-lin:mec,1 construction in sr,1tC5 with .md without prevailing W.lgo: bw" Th,'ir lindings revenJ th;!r prevailing wage laws don'. inflate tIle cost of public consmll:non. According to a 1991 Minnesota smd}', "Prevailing wag" 1:1\\"S SCI'\'C .311 invaluable p\lblk purpose by ensuring Ih,u gm-- (;rnl1l,~nr does not become a p:my to such desmbili7jng prJC- rkes" as paying lower than prevailing Wa.ges :1I1c1 hiring 1113.0)' out-of.st;lle workers. PREVAILING WAGE lAWS ARE GOOD FOR AMERICA "A nd it's not .,.. enough to have .a job, that's only part of the fight. On<e you have a job, then you have to he paid a aecent5ta nda;rd. of lIvlil!j in (lrd er t(j pro- .,'-'._ ...-,"",- ,.C-',,-, _ ". '. vide fow your 'fanlily" , .'.. Andirs almys been my beliefthat in neighborhoods that . are:sf.ftingestt pl!opJe .arem~king ad€(ent jMng~Jri :tlelghbQ('-. ... ~oodHhatare Weak" ,:est!pe,pple .age. not making a decent living. And so it shouldnttbedlffirult for ~st~5aY that . . I}e' . ro<t "I haven't built my company Clhd my reputation using low-wage, unskilled worKers. We- Come in ahead (lfsc:hedulre and under bUdgel because we use the best skilled w01ket'S and runttu~ jo:b witt! a t<llenterlmanage- men!team,Thatk:ind of operation doesn't corne mepp,but inv~sti/]gjn skills is what brfngsthe f.werall (Qst ahem- strtJctio~ down." \VilhOIJI !m:\';liliJll! w;lge I:1W5, t1wre would be iJlcreased imrabili,y jJl Iht' t'OJlSrrunjfHl bbor J))arkl'L i1en'cr compe- lilion for \\"o)rk from o\Jl-of-srate workers ;md COntr;lctors, and ;1 I",,,:r ,uJl,!:.r.! of Ji\cing for worhT5 and lheir fami. lit,. ;lc('ordll1!! 10 a similar I '}S8 <.'C'molllil'-illlpan srndy. PREVAILING WA.GE l~WS; (/ profitable C071l7JlUIUfrI/ 1717)eJt:Jne7'lt --------!.J-_____~n___..._.'"......".,.,_."..".,,,..._^...._,.._.___..__.._____..____._ ,.\n :l1J:1lysis .,f Iflt e(">llumlt' effecls of prevailing wages Sh()W5 Ihat the I:I\\" in S:lll BCllIardino, Calif" gencrales benefiTS to ,he community 14 rimes the :lIl1OUJ)t spetH onll]c alillal construc- tion projCl1. ']llal's bcc:lIIse wnrkcrs spend pnn of their income in IOell shops and restaur.1lJ1S and par local ta)(t'S, which are re6rcubted throughout rhe local economy. 'nlc law :llso cstJblishes an upwardl)' mohile tT;Jck for minority workers llJ ndv;1l1ce into higher-paying jobs, -n]e snuJy emphasizes that construction workers who don't Tecei\,'e hC.;3lth and other bendits becollle ~net: llsers of public $el'vkc" J\ll'ing pcriods of unemployment. while the worker who enjoys these hellelll:.~ becomes ~a net con- tributor." Davis-Bacon immunizes employees from rhe need 10 seck benefilS from s'xial programs andlJelps them cOIHTilmle to the communily's ability Tl) hlTJJish social pro- grallls lO Ihe needy. ISN'T prevailing 7vage TH~ SJ\MEAS UNION WAGE? Absolutely nOl! The U.S. Depamncnt of CabOT dctennincs rhe prev;liJing wage rate fOT~.Jch job classification 'requiTcd for ,1-COIJSI:rUct:iolJ project by sUJ"\'cying cum'IJ! w<l,ges and fringe benefil~ paid in the locJlity. According t.o Labor lJep:mmelH ligures, nonunion S1.'3lc5 <lcconntedfur 7 1 per- cem of wage Jelcnnin;ltions issued in J 994. The Congrcssioll<lJ Budger Office (CBO) has found wage delennin<ltions are ]lot biased in f.l\'or of union wage levels. CBO reponed in 1983 that unionratcs rendw beisslied for ge<)graphic areas and types of t'O!lstrUctionthnt ~.Te heavily unionized, and nommion rates ;lTe ll.~ \vhere IJOJlOllio)!econstruction wor.k is dominanr. PAVJS-nA(ON WORKS! rt'1. ANNUAL INCOMES DB R:ltes for Heavy Const.ruction 80 70 60 ~ SO ~ 40 S 0 x ~ 80 70 60 so '0 30 SOU'C:E V'.'OOC5 io FOOi..E ECCl40MK.:~:tm""".tMINl Oi 'l....&C.~ This chart represents average annual incomes of worl:ers in four cities. The workcrs, employed on federal hC<l"y-con- stnlcl:ion projects, received D,wis-Bacon wages elTective November] 994. 'Tne incomes ;lS$UmC C;Jch worker was employed for 35 weeks (reflecting 11)')4's average duration of 17 weeks unemployment for eonstruction workers) and 40.4 hOllTS per week (the 1994 industr}' 3\'crage). Alongside is the avernge household income i;)r e'teh metro are;). '1\\"0 important factors SllJnli our. First, wages ;lre higher in S,m FrnncisC'Q and Chicago Ulan in lower-cost Dallas and Atlant1l. Second, in none of these cities do Davis-Bacon incomes 'lpproach average household incomes. III 1994, the poverty lindor a family ()ffour was $15,141. Even ina good year like 1994, families of carpenters and laborers would h'lVe sl11.lggled to avoid povenyif they suf- fered the 3ver.lbTC dUT'Juon of uJlemploymel1t in the industry. PREVAILING WAGE LAWS ARE GOOD FOR ...MERICA !l ?O BENEFITS 80 7. 60 w OJ SO ~ % .0 tl '" 10 w .. 20 I. 0 80 70 6. 5. ,. )0 I. " iIJ ~~'VATE.SECTO~AVE~AGE .., CONST'.hUCl'toN ':i,:r.)l;.a:.WlAA~.a.""Ci.vnt..'f c.~p. ~n-.r."'.!iJ~r r#:S....ND EI"P.l...on.~ 6[NEfn::"'f~"'.O. L'".'5HIL!ll, ;',.l'i"!W ~roJ<r NO;~: DAVIS-BACON proteds b~~i_~__.____..._. Con'trucrion workers ;lrt> ;lIl1fmg the few gro\.ps of clIJplo)"- ecs hired 10 work thl.'mseh-es out of>) job. They are {wire as lihl)" to l:~ l:lid off ;J, odwr wllrlu,rs. -nlis is due If) husiness- cycle flllcmaoons, wC:lther ch:lIlges, ;lnrl complerion oi dill,')"- c'nt phases of projects. ,.I, good benefits p;1Cbge is L'!;senualto sun'ivin/! the ine~it:lbJe ups and downs of commlction liJe.lJniomm:ltdv, COI1SU1Jl-oOn workers arc much Jess likely to h<lvc he<llth insur;mce and pensioll con'rage th;lIl other workers. In If),)3, only 37 percent of constnlt"tion workcp.;' employers spon- sored pensioll pbns, l'IIlIJ]lilre.d to 64 pern'l.l! of pn"Jle-Sec- mr \\'nrkers in odler indmtTics. And only 55 percent nl' con- stnll"tioll workers enjoyeu employer-provided health insur- allce, compared to 74 percent of :lll private-sector workers. D:lvis-B:lcon plays a key role.ill prO\dding stable bcnefits, indtldilig hcllldl insurance, pensions, Jife and disllhility instJr- :lIlCe, and vat::Itioll :lnd hoJid:l)' pOl)'. fllm,my cases, i:hese ben- dits llre offered through lIJuftiemplo)'cr plans. which enahle workers to tei::Jincovcr:Jgc when ther change employers. 6 I) " v s BACON WORKS 7\ DAVIS. BACON .rti7111.dates traini11o- -...--'----....-~'--..._-~-..,--- -, ,.~.~--------,--..--..._...--'.~...~,..-..' "--". '-".'-" ~ - ". b . -' By f;).,I('i'ijj~-fr"llning :Jl1d Ijfdong <:;Irecr inwl11i,"cs. D:1Vis- Bacon l'nCDlJLlgl':'i ,~kiIlL.(_1 workers I() .'it:1Y ill n)Il"\tT1IUlun. This helps tit<' induslry :lIld consrrucli.m "Wnt.[>. They (":m dqll'nd on :, 'I"hl.. pool of 'n:lI.tJ"im.d. l'xllt:rienccd \H)rh'rs. (lne w"y J):I\ls-lbcon hdps ,,,,hi,..... Ihi, is hy lelling e"lllr:l('tors p"y kss than pn.niling W:lgt'!; 10 tho,.. employce, l'nrolkd in /.'(I1J;i.fidr :lpprcntjecship training progr:um. This cxccptiun 10 prn':ljJi.ug w;lgl' rctllJin:lncms i.\;l powerful incclllin' I()r conir:1Clors to suppon wdl-structured rrainmg programs Il)!" nt'w wurkers. By smbili7jng IhecollSlTUCll0n indl].':11")', Davis-Ibcnn :lCIS :lS a bulwark :lgainst the harmful erosion of qualified con- stwelion contractors and workers. In recent Yl'ars. mallY sblled collsm.ICtion workers haw: left the indusn" helore n:tiring because uf st:1gn3nt wages, illadequatc benefits, and myriad inconveniences of constnlrtion We. n'idJOllt Davis-Bamn, apprenticeship programs woult! decline and skilled workers woult! L'Ontinue to ]c:lVC the indllS- IT)'. ]n st,lIes where prC'\'ailinl:( w:lge bw, h:1\'e been repC:lled, apprenticeship and rraining levels ;lre expected ro drop by 40 percent. For example, in Utah, :lpprellticcship graduation ratcs plummeted from 95 m ]5 percent_ That stollC nowFJccs :1 shortage of adequately lTained C011struction workers. ~C( W.IlJ:i,A.U Of v.t.bi. j;!AT.cs'lC'5;tMfl~(;m kID f/J!1Ir1NQ PREVAILING WAGE lAWS ARE GOOD fOR AMERICA JIB e(!ltel has . worked on a number of projerts where the Davls- Bacon Act app!les, and berause.it:stabilizes tNlnS and;tondrtiohs ,"'.: ''-.:' ,..:.-:>....'-,.._....::,.,...'ci-..:..,'.'.; .fora coniractot'SwOrkfOtte, W~ ronsiderit worth pres~tVIl'J9:; '?)~ "Elimination of the Davis. 110(:00 Ad whkhsta- bilizes w,ages would '1)OlysN\le to exan~r~ bate the:mrr:ent.. problem .of skillsb1)rt- . i1 ge5: in the ronstfuc- tionindu!itry... (ow Wil.ges wouJdbJlfllr~ ,;:~~"~, . tots In a ,5(fam~ .bleto und(lltid ~a,~h . other lnordedo.\)iin , . public (ontiS1l(ts:-fo. . the detrl~el1tof~ll:f~ DAVIS-BACON advances 7ninority qpJzortunities! ......." lixlay. thanks to D:I\;,- Ihn>l1. :\fri'~1I1 :\merie;lIls,:'\:ltiw 1\lIleri'~IIlS, J-ji\jl:lnics, ;md women worker, C;lm [lir W;lge, working on federal pmjerts.]n I'Nn. minority parricipation in :Jpprcmiee5hip prc'gr;ll1l<; W:l, 12.5 peTCel1lnatiollal/y. higher in sc'-eral trmle5, with olX'r;lting engineer, :It ~2 pn- cent minority enrollment, roofers ;11 .lR percent, and CClnCJ1t masons at 'flj perccllt. .\Iinoritit,s :lft' hC:l\'ily cmpJoyedin the union sector where their graduation rate i, hi!!her thall in non-unioll appn:nticeship prog.rams. The Congressioll:ll Black Congress rCl'cntly under- scored D,wis-Bacon's contributions in a leuer to :\BCs news magazine, "2012()": "H/r hlitr.:" tl1m DOVLr-Bu({lfl bas hem hL.j"lI1l1t11tJll iJ1IJJil(~- ing tbe 7Mge gap for hiqm1~'.716' dirmlmmnged semm: of sodt'IJ'. ./11 lire face if'decoying S()Ci.11 nnd Pi7))1um;r oppommirics, rhis 11Jellstl1'r providl'S W01Jjrn .71/1/7I1inDrilifs ;dln .711 impol1111Jt 1001 to nfbitr.'ing great,.,. pt/1ily tpith tb~il'mllillsh'rl1m rolmtrrpI7l1-'. The DIli'l.r- Bacon Aft hns mode n m/l/oblr iOllhill/JtiOll to instituting pro!trln'r ((Iuiry (md .rtobility to A7JJf'rjal11 ,;ltJrJI/?"S rt""yu,htJ'(!. " Re-JJ equal opportunity depends on access 10 tmining and mreer development opportunities. Some Da\'is-B.lcon critics complain that keeping up labor standards reduces economic oppoTnmities fur ul15killed \'-oi'ker> willing 10 work for an)' wage. The best W,I}' to recruit more minorities into construc- tion jobs is to .increase apprenticeship opponullities, nm to l-ut wages and ski.l]ed jobs. \Vithour Davis-Bacon, u1e proportion r>f minorities lruined in COllStruction apprenticeship progl'.llJJS would dedine substantially; 111 Slates that repealed their pre~~li]ing wage Jaws, milJoriry participation in ref,>1steredapprcmiceshjp programs dropped from 19 to J3 pelWIlt-nr from 107 to 85 percelll of their share of the ovenl]1 state population-and wages dropped by an average of 5 percent aLTOSS the board. MhlOritv and female workers have entered the constfuc- . ~ . - -.' tion itlduStry in increasing numbers Over the past 15 years_ As newest members of the industry, they are particularly DAVIS.DACON WORKS! "/:/7 \'ulll~rJ"/~ to th~ wag~-clltting pr;lnicl's DJ\-is-lhuJIl Jlln, II) !':In. Repe;l/ would hi, minorities dDllb/!' h;ml "~ram~ access to training- opportunities would be reduenl "Ten'Iy. ~'.lJal~)' V.~bli pro./i:f:' [OUc'frJJI1!tfJIIIIJ,/;'i{-/}I},'IOJ:~ i,JJp.lc1 ri}i /1/ild- ~;"!)rl-"n:f ibell o'r){"Otbl", ft'm:r. Jl.i/.f I:" pa/1 '~{ll.li"I-.r"il/( d\JIIUIt r,j)J JJlilh:r i~ftbt, ri.'li n:~l;f.r ,J1Iil.:-l)rl'o"-pn.llo.,ioll inilMI;:'t:f. "_ \ \;1lk }-lcnder.;oJ1, \ raShin!!lun Burt',m Dire('lllr. '::\.-\U~ DAVIS.BACON boosts s(!fi.t:Y...& hen/tlJ ConstJ1Jcuon worl: is undeni,}bly d:lIJ!!enHIS---esp,-,(.j,llh- \\"hell workers are inexperienced, unskilled, ('f lindeI' pressure In CUI corners Jnd ,n)rk fast. H-jthnlll D;1\;,- B:lcon, these hazards would he E~;}cerb:lI ed. f{l'pea/of state prevailing wage laws led to a J 5 percen! jncre-ase in wI)rk-rel:ll.:d injllr.ies :lnd jllnl'ss- ~S. At th~ llaoonallevcl, without Illi, law, d,"r~ l1.mld /.17~ //The D<lvis.B<lwfi , Act ensun~5 that we are bijrldillfj on :a b:aslHhatwlll allo~th-e u$tHjf ..' sklHMlabof~ To.think thatm~reIYiedud09, - - " ,.', --..---_.---.---_._<:<---'~-->!-'-- the<<>istof~_a~or_wm 'pf{)vid~ ~d1e~per . pwduClIs'ludftr~il.s;'J Ix' ,111 ;1.ldililll1.11 -6.1)111111\:"\\ wl.1rkpbno in;uril.'., t;H.:h Yl";1I". indlhlin~ .;U.l.JIJD 1I)I}fl" ~,,:ril)lJ.'} injuries n."s1Jhil1.!! ill missed d;l\', oi ,,-ork "Iler "n-i,k-n,-'. Thi, mc;lll> r~.Jue"d \'Olmil1.~s. 01 !..J\\-IT ,/,day 'It IiI,'. ","II"IlSII.r, 11l11~-lerlll h":Ilth Clrt_ \ rorh'rs' 'HIllIX'I1"lli'm eos,-' would imTl''''': hy S5 hil- lillll!'..T "'.Ir. ..1 "hieh s.;OO lJ1iili'Jll "0'."" h" p:"sed Oil r1w 1,'d"1'.11 \:"\'TI1I1I\:'1I :J> il1lT,,,],,:d puhlit- "'lrks' "1'-'1' .md lJlti- JlI;II..!' 011 I" \'1.>11. {he t,np'l\-"r. Ski'''''!. Ir;,ill("!. :IIHI d,.dil':lIed "orhT, hired:1I pre\-"i1I1li! "a~,", ,Ire Ir;!innlt,. "'Jrk "IIl.-I.r', _ \nd h(.twr project "Ifer}" ;111.1 qu,]lil\ \\1"].: "1,',," I,'wer ri,k.-; of ('ll\'i rt'"11 lL'nti, I ;lIhl h'::llth di"ISlers, By pJ"(:n'IJlin~ ,hodd.r', IIIJs:lf(: wI,rk. 'lur soeiuy S:J\TS IllfHll".\- (>Jl l'1l\'in)J)rni..'n{~)1 ;lnd eClmj)lJ~:jl. Cll':ln~llp costs. DAVIS-BACON ellban(f~j2rodltl:tivityj There is " srron~ link bl'twl'"n bir II""~C' and high produni- \it)'- The reverse is also true. \\jlhotlt )),wjs-Ihcon, COI1,tfIlC- cion \\'ould re\"l'rt II) alow-w:lgl" low-techlll)logy ill(lusrry. :\ ITlTll1 study \Istd Fcderal Highway Adminislr:nion ,.bm In romp,}re lhe ;J\'en}ge construction l:f)st.~ of bridges and highw;lY~ in 1\\"1) lc'TOUPS of SI;ltes. f-Jigher-w,}ge sl:ncs built highw:l)" for II 1'"reem k" Ih'lll lower-w;jge st,Hl'S, States 111;11 p,jid workers the least endcd up ",jth m'lds more expensiw by $125.000 for en:r)' mile huj!t. This is benmsc higher-wage SI'lIeS IHljIt more highways in f,,"'er hours of bhor. JI1tTC3Sed prodllct1\'ily of bl'1Iel"-1';,id work- ers made up for Ihe ('os!. As w'lges :Ire bid down, so are prodnerivir)' kn'Js. Ut'lh's fepl-;]) ofD:nis-Bacon Ius It:d {O ll1assj\,c increases in CI)st O\"l'rnms and expensivt change ()nl~f5: sT'lIe-lin,meed ro:ld COSIl)n.,mms tripiI'll owr Ihe following lkG",le Lecllls~ of low-ball bjdding practices, D 1\ V s B " ( 0 N WORKS 7; DAVIS. BACON 15 -lair to all AU1Crictllls.' . --', --,-, _''''."n" ___J_~ ...-...-,-.____________,_.__~_.__.__.._ .._.. _. _ _, n. (~I)lhrnll.ljnn l"UIlt'r;I\.:ll'lr:,; :Jlld \\"'rker~--llIJth IlIli,m :lnd 1l1.IJillJlJIJn-bL'Jwlil t'=--)H,'ri,llly Irllm !);l\"j;,;-Jbcul1. nUl su do you, Ih~ ,-\mtTi\';11J UXP";lT: \ \'ilhuul D'l\'j,-]l:J("<'IJ, all ,,f ", \I .,uid p.l!" 11"11",'. \ \ 11;'; B"('Il"" Ill' wUllld nlll I", ,Jhk Iu prl'diu lh(' do:.-pendahiliry Ilf CIlIblTlll'llnlJ prlllhWI,', III 'lddil ; "Il, \\ urklTS \lllllld I"'l' ilJl"lll11e :lIlol lx-lIdib cm'lT,Ii!('. {'Illllr'll"rnr, "f)lIld p:n hjgh"r \nlrh-r,' t'lInp"n'>.lIion pro:.-miwllS. {'Iln,ll1luion to,IS wOllld ris,'. and [;1\, I")IW' ""uld end up paying J-,igh("r iIJSllr'Illl'C ("I);;/> rhrouf(h ('OSI ,hifting 10 )>ri'-'1Il' jnsur;lIlCC 'lI1d imn':hl'd sure lillHI\ ti,r hO'l)i- lolls. And CIllllnHlIliries wlluld luse huying power 'lIld I:n "a,-;(",. '" ~ \-\-,,, :dll",nelir Illtim'lIe1y because D:l\'is-Bacon prodll"cs hcrtcr puhlie eonstnlction col11petjtivd!' b'lsed on good man" agemem, good engineering, good ""sign, alld 'lll'llity erAts- manship, .I11,sl ;l5 we need to know the <:Tcdenuab of our doc- tors aml others with whom we trust Ollf liws, w" als" need 1'-' know the (T~dentials of skilled work"r5 who cnnstnlCl and install life-saving lines in our lives. \Ve desen'e the best! Da,is-Bacon is crucial to OUT country's economic health. ~1 :4 0/\. . WHAT DOES THE PREVAILING WAGE MEAN TO MINNESOTA? An overview offacts and recent studies on Prevailing Wage Laws Recent Events in Minnesota put Prevailing Wage in the Spotlight.. . In early 2005, the Minnesota Legislature instructed the Office of the Legislative Auditor (aLA) to research Minnesota's prevailing wage law and its effect on costs of construction and the broader state economy. The Quality Construction Coalition, a group comprised of construction finns and employee representatives commissioned economist Dr. Lisa Jordan of Brevard College to conduct a study about Minnesota's Prevailing Wage policy. This fact sheet draws greatly from Dr. Jordan's Study. On January 31 of2007, the aLA is expected to release its report. I. How Prevailing Wage is Calculated in Minnesota Minnesota's method of detennining prevailing wage rates is to use the modal average of wages and benefits as reported by employers and employee representatives on work actually performed in each county across the State. A survey of state legislation shows that the majority of states with prevailing wage laws and the federal government apply some form of modal method. Given the segmented nature of the construction industry, the mode is the best measure of prevailing rate because it avoids lumping together disparate categories and classifications. In other words, the mode provides the best measure of area standards considering the nature of the data available. 2. Enforcement of Prevailing Wage in Minnesota Prevailing Wage Law violations are largely unenforced in Minnesota. With the exception of the Department of Transportation, which does a superb job of enforcing prevailing wage on all contracts it lets, other departments, and the Department of Labor and Industry, which is ultimately responsible, do not effectively enforce the law. A few states have instituted more proactive approaches. For example, New York has a "strike force" team to monitor compliance, Rhode Island has created a private right of action, and Tennessee has created a right of action for its Department of Labor. The enforcement of prevailing wage in Minnesota appears to be constrained as it is in many states by a lack of resources. A more effective approach could include more systematic auditing and creating a private right of action. 3. Effect of Prevailing Wage on the Construction Industry, Project Costs, and the State Economy l\O . ' · PREVAILING WAGE IS NOT THE REASON PUBLIC CONSTRUCTION COSTS ARE HIGHER o The evidence does indicate that public construction costs are higher than private construction costs. According to one study, the costs of public projects in all states (those with prevailing wage and those without) tend to be 27.6% higher than comparable private construction projects. Other factors-NOT WAGES-increase the cost of public projects.l · BUT CONSTRUCTION WORKER WAGES DROP WITHOUT PREVAILING WAGE o Repeal or weakening of prevailing wages lowers construction worker wages on both public and private construction projects from 2% to 18% based on different prevailing wage studies.2 · PREVAILING WAGE MEANS BETTER HEALTH INSURANCE o ln states that don't have prevailing wage, the provision of health care is 18% lower than states that do have prevailing wage,ln states that repealed their prevailing wage laws, the provision of health c~re benefits dropped by 79%.3 · PREVAILING WAGE MEANS BETTER TRAINING AND JOBS o Studies show that apprenticeship rates in strong prevailing wage law states are 82% higher than in states that have no prevailing wage law. Completion rates were substantially higher in states with prevailing wage laws (52% vs. 28%) and that it took less time for apprentices to complete the program in states with a strong prevailing wage law.4 · PREY AILING WAGE MEANS BETTER WORKPLACE SAFETY o When Utah's prevailing wage law was repealed injury rates went up 14% overall, serious injury rates went up 15%, and the number of lost days increased 12%. A study of injury rates in Kentucky found an 11% increase in serious injuries and a 16% increase in lost days per serious injury when the prevailing wage law was suspended on school construction. The most recent study found that the presence of prevailing wage reduces the injury rate by 8.25% while reducing the incidence of the most serious injuries by just over 1 0%.5 J Mark J. Pros, "The Effect of State Prevailing Wage Laws on Total Construction Costs," 1996, p. 8, available at www.smacna.org/legislative/effects davisbacon.odf. 2 Lisa Jordan el. a1. "An Evaluation of Prevailing Wage in Minnesota: Implementation, Comparability, and Outcomes," (released October 2006), pp. 41-43. 3 Jeffrey S. Petersen and Erin M. Godtland, "Benefits vs. Wages; How Prevailing Wage Laws Affect the Mix and Magnitude of Compensation to Construction Workers," in the Economics of Prevailing Wage edited by Hamid Azai-Rad, Peter Philips and Mark Pros (Burlington, VT: Ashgate, 2005), p.194-l95. 4 Cihan Bilginsoy, "Wage Regulation and Training: The Impact of State Prevailing Wage Laws on Apprenticeship," Working Paper No. 2003-08 (May 2003) University of Utah, p. 13. 5 Peter Philips, "Kentucky's Prevailing Wage law: Its History, Purpose, and Effect," Ocl. 1999, p. 62, 85; Hamid Azari-Rad, "Prevailing Wage Laws and Injury Rates in Construction," in The Economics of Prevailing Wage Laws. eds. Hamid Azari-Rad, Peter Philips and Mark J. Pros (Ashgate: Burlington VT) 2005, p. 182-183. L\\ . PREVAILING WAGE MEANS MORE TAX REVENUES o Based on the body of prevailing wage studies, an analysis suggests that repealing or weakening the prevailing wage statute would cost the state of Minnesota between $37.8 and $178 million in tax revenues depending on which estimate of wage reduction applied.6 6 Lisa Jordan et. aI. "An Evaluation of Prevailing Wage in Minnesota: Implementation, Comparability, and Outcomes," (released October 2006), p. 5. \.--\}-- WHAT CAN CITIES AND COUNTIES INCLUDE IN A GOOD PREVAILING WAGE ORDINANCE AND THE POLICY THAT GOES ALONG WITH IT 1. Pick an exception amount (St. Paul uses $ I 0,000) that allows the city the flexibility to not require prevailing wages on very small jobs. 2. Cite to Minnesota's excellent prevailing wage statute with clear language such as, "All projects contracted for by the City shall comply with the prevailing wage requirements of Minn. Stat. Sec. 177.41-177.43. This requirement shall apply regardless of the source of funding." 3. The City may also write into all contracts granting Tax Increment Financing that the developer and all tiers of contractors and subcontractors comply with the City's prevailing wage ordinance or policy. 4. Designate a Compliance Officer or other staff person to become familiar with the requirements of prevailing wage and to investigate and refer violations to the municipal attorney. This responsible person needs the City to write the following elements into contracts: o contractors submit certified payroll to the Compliance Officer at the end of each regular payroll period, but no less than every 15 days. This way, if a contractor proves to be less than what the city bargained for, the city can pursue a claim and enforce its policy. o certified payroll be submitted on a form that is similar to federal Department of Labor Form WH-347, which is found at http://www.dol.gov/esa/forms/whd/wh347.pdf.This will help avoid the problems that arise when contractors submit incomplete records. o contractor collects and submits certified payroll for its subcontractors- through a subcontracting agreement. o Contractor must comply with the City's audits and investigations and must be given free access to the job sites. (the Compliance Officer should visit sites regularly to deter violations.) 5. The City should pursue compensatory and liquidated damages through its contractual provisions where violations are found and may reimburse the affected workers and should immediately remove the contractor from the job site. ~7 ~ -~ History of Davis Bacon Act ~, The Davis-Bacon act was originally jntroduced in 1926 and was sjgned into law by President Hoover in 1931. The undetlying purpose upon which the Federal Statute was enacted, and its current effect jn serving that purpose, was studied in 1964 by a, Senate com m jtlee investigating the Act. The romrnittee found that: A lmost from the inception of Federal construction activity, Congress recognized the necessity for providing basic wage protection to local laborers and mechanics employed on the construction. It was precisely f~r the purpose of providing this protection that Congress passed the Davis-Bocon Act nearly 60 years ago. Virtually all segments of our society ba1Uled together to demand its adoption. The local controctors demanded that they be protected from unfair competition from outside controclOrs who were securing Government contracts solely because they based their bids On wage levels lower than those which actually prevailed in the locality. Local craftsmen, protested because their wage SUlndilrds and conditions were broken down and they were denied work by those contractors who recruited labor from distant cheap labor areas. The local committees requested assistance because of the loss of work and purchasing power to their citizens. The Davis-Bacon Act law was designed specifically to eliminate these conditions. It has proven 10 be generally effective_ The Federnl Davis-Bacon Act has been expanded to include almost all major Federal construction grant and loan programs which have been enacted within the last 40 years. By continuing to implement the David-Bacon amcept in to ronslruction grant and aid programs and by augmenting the Davis-Bacon Act to provide broader and more comprehensive coverage, the Federnl Government has continued to recognize the social and economic value in safeguarding and preserving the stability of the economy of local communities. Prevailing Wage Laws Among the States Acting under the llpparent belief thm stale government should be equally concerned with local economic stability as was the Federal Government, state legislatures lhroughout the country beglln enacting local prevailing wage laws immediately upon the passllge of the Davis-Bacon Act. Ciearly, the prevailing wage concept has been proven essential on both the state and national level as a means of preservjng and protecting the economic and social well-being of the citizens. "Little Davis-Bacon Act Minnesota's Prevailing Wage Law" Minnesota enacted its own prevailing wage law in 1973_ The Minnesota law was exclusively designed to protect workers and contractors with the Minnesota construction industry. It is substantially identical to the Federal Davis-Bacon Act. Minnesota's law states that the prevailing rate shall be the rnte most often paid in the area. This is the rate determined by the_private economy and is, in fact, the rnte prevailing in the private sector. Surveys by the Minnesota Department of Labor are used to compute this rate. Negotiated wages paid to ",ruon workers are only or:>e factor used determining the prevailing wage. All wages in the area, collective bargaining and non-collective bargaining wages are included. The Minnesota prevailing wage law has played an important role in enabling Minnesota's construction industry to mushroom from its infancy to its current position as a major factor in the state economic structure. Why Minnesota Enacted its "Little Davis-Bacon Law" The reasons behind Minnesota's prevailing wage law are substantially the same reasons for the Federnl Davis-Bacon Act. 1. Economic Stability For Construction Industry The Minnesota construction industry is tempting for out-of-state contractors and workers alike_ The enticement of obtaining a foothold within the Minnesota ronstruction market provides a substllntial incentive for major out-of-state contractors. Without prevailing wage protection-without requiring state arid municipal ronstruction contraCts to be in accordance with Minnesota's prevailing wage leve1s-these out-of-state builders could be expected to swoop into the State with cheaper labor and severely threaten Minnesota industry_ But where would that leave the local rontractors and the workers he employes, all of whom have to make a living in Minnesota? This is not to say that Minnesota should build a fence to keep out competition_ Certainly the State and the ronstruction industry should welcome responsible, sincere rontractors who wish to become part of our economic structure. Responsible contractors, both in state and out-of-state, will have the best interest of the State in mind as they establish and develop their business interest in the State. But it is the irresponsible and insincere contractors that the Slate must be concerned with if the prevailing wage protection is eliminated. For once the Trojan horse has been invited into the St:lte CllpilOI Building-oncc the L\~ "make-a-buck" conrraaor gcLS a foothold-thc cntire loc..1 eonslruelion industry will become unscllled, A House commillce revjcwing Ihe Fedcral Davis-Dacon Aet in 1 %2 pUI it aptly whcn thcy found the following typc of conditjon 10 cxjst before enactment of Ihe Act: " On many occasions the local contractors and local laborers had to stand by while outside contractors and ouLSide labor performed, under locally substandard conditions, work thaI otherwise would have been theirs." In testimony before a Senate subcommittee studying the prevailing wage jssue, a representalive from the National Electrical Contractors Association had thjs to say: The payment of prevailing wages in a given area to construction workers, whether union or non-union, maintains the stability of construction in the area. Without the Davis-Bacon Act, we would see travelling contractors moving around the country picking up federal and federally assisted contracts using cheap, unskilled labor and uderbidding established local contractors. Quality would suffer since the contractors would be gone when the job is finished Such activities depress living conditions in the area where these practices are allowed Unemployment in the area grows and local labor and their families suffer, Local business suffers as well. As previously noted, Minnesota is one of the most enticing construction markets in the country. The prevailing wage law is the only protection the State's construction industry has from economic debacle. If out-of-state labor usurps the jobs of local citizenry on public works projects, it is also probable that upon tennination of these jobs, the out-of-state workers will take their wages back to the states from where they came_ Thus it will not only be the local workers who will be harmed from lack of jobs, but also the local merchants who will not benefit from the construction salaries that are paid on State projects_ If foreign workers are employed on State projects and then leave the State, it will be Arkansas car dealers, Alabama home builders, and Tennessee merchants who will reap profits from State construction contracts to the detriment of Minnesota workers and Minnesota merchants, and ultimately, to the detriment of all citizens of Minnesota. 2. Pool of Skilled Labor A skilled and competent labor force is the backbone of the Minnesota construction industry, By preventing out-oC-state and unscrupulous contractors from recruiting cheap, unqualified'labor, the Minnesota prevailing wage law assures the State a continuing supply of competent craftsmen. As previously noted, the majority of all construction journeymen are union members who have contracts with 10,000 contractors in Minnesota paying union wage rates, The effccl of repeal of the prevailing wage law wou Id be 10 drive the skilled conslruction labor pool, thal has IJccn trained by local contraaors (wilhout tax dOllars). to other states, If repeal happened it is highly unlikely thai thcse trained workers would accept the same work at less pay, They would, instead, work only among the private scclor; and, assumjng the private sector has limitations on the number of workers it can assjm ilate, migrate to other Slatcs where prevailing wage requjrements are upheld. Not only would this have a derogatory effect upon public works, but it would adversely affect the private sector, of the construction industry as well. since Ihe majority of construction jnthe State is done by companjes who are signalory to labor agreemen~ and jn turn draw thejr , workers from local unjon hiiing halls. As labor expert Mjlls wrote, .. In an unstable jndustry, the development and retentjon of a skilled labor force requires that employers and unjons agree to practices thaI preseNe the job opportunities of craftsmen." These pracljces include union hiring halls as well as suppon for prevajling wage laws, Mills assens: . . - employers greatly value flexibility of operation~e ability to hire and lay-off men as job conditions demand it (via union hiring halls). Equally important is the ability to hire men at a predetermined wage scale, so that the profit on a job is not eaten up by wage changes negotiated after the bid price hos been determined Construction workers are not hired as pennanent employees; they are, therefore, highly vulnerable to sudden lay-offs since they work in a seasonal, unstable industry on a job-by-job basis. Astute construction industry management long ago recognized that the unique characteristics of the construction industry mandate prevailing wage protection. Without it, Minnesota would soon find itself with an inadequate supply of skilled craftsmen and thereby lacking an essential prerequisite for the presentation or expansion of a viable construction industry. The rational behind prevailing wages to maintain a skilled labor pool has been summarized by James E. Swan, a spokesman for the National Electrical Contractors Association: An cuieqZUlle, trained and competent labor pool is a first requirement of a strong cOrlStruction industry and it is as vital to natioQal defense as a stockpile of missiles. the David-Bacon Act simply. . . establishes a minimum level for the competition in respect to wages that will support the maintenance of such a skilled labor pool. (And it does this only when public money is involved) y'5 LOZL-9j79-1S9 :OE1SS N~ 'Ined lU!es 'laaJIS a^!IO OOL 'SJaUIOr pue SJalUadJe:) 10 puno:) leuol3a~ sUleld pue sa~el :,\q paJedaJd ,PREVAILING WAGE MAKES SENSE in ANDOVER Training o Prevailing wage typi- cally goes hand in hand with better training, En- rollment in apprentice programs is 82 percent higher in states with strong prevailing wage laws, That helps pro- vide a future for young workers. Prevailing wage also allows skilled workers to remain in their trade, creating a more experienced, productive. workforce. Health care o In states that repealed prevailing wage laws, 79 percent of construction workers lost access to health insurance, That sticks responsible businesses and public health agen- cies with somebody else's health costs, Enforcement o Simply having a pre- vailing wage law is not enough, Enforcement is also necessary, En- forcement can incfude: . Requiring certified payroll information from contractors . A private right of action for workers to sue the contractor if they are cheated out of their proper wage . The ability for a public agency to with- hold payments - and even to deny future projects - 'Nhen con- tractors fail to comply with prevailing wage requirements Why pass a local prevailing wage ordinance? Prevailing wage is about standards. It is about standards that support local workers, support local businesses, and support local residents. It is about gelling the best results when you invest taxpayers' dollars, A local prevailing wage ordinance makes it clear you don't want the cheapest construction - you want qual- ity construction, built by proficient conlnlctors and bighly skilled, productive workers. Minnesota's prevailing wage law (Minnesota Statutes 177.41 through 177,44) does not cover construction work that counties, school districts, cities or other local governments do on their own. To guarantee the standards and benefits you want, you need a local prevailing wage ordinance. Prevailing wage sets the standard Prevailing wage means all bidders must meet a consistent "spec" for labor, A local ordinance means tax money will not subsidize contractors who rely on cheap labor. By equalizing labor costs, prevailing wage moves contrac- tors away from competing on who can cut the most comers. Instead, contractors compete on such qualities as productivity, innovation, management abilities, and gelling the job done right the first time, These factors produce better results and reduce public costs more than simply paying workers less, Prevailing wage principles value skilled contractors and workers, Common sense tells you that means safer job sites and higher productivity, The state Legislative Auditor and other researchers rec- ognize that prevailing wage makes construction jobs beller jobs, By supporting decent standards,. prevailing wage promotes careers, including viable options for young adults ente;ing the workforce. How prevailing wage benefits your community A prevailing wage ordinance helps give meaning to the "responsible" portion of "lowest responsible bidder," Low-bid requirements - although intended to save tax dollars - can have unintended consequences. After all, cheaper is not always cheaper in the long run. One unintendep consequence of low bid gives cut-rate contractors an advantage over the best contractors. Too often, cut-rate contractors rely on low-wage workers. That can mean shipping workers in from out of state, When that happens, money leaves your cornmunity, Local contractors and local workers certainly lose, but other local businesses lose, too, Prevailing wage, on the other hand, invests in local workers and businesses, Workers who live here are more likely to spend their money here. They contribute as good customers, good neighbors and solid citizens. They can take care of themselves and their families, How prevailing wages are determined The Minnesota Department of Labor and Industry certifies prevailing wage rates for every county in the state (and for 10 regions in highwaylheavy construction), There is a rate for each construction craft, based on what workers in that county actually are paid in the private sector. The state prevailing wage includes a basic wage, an amount paid for fringe benefits, and the total rate, The total rate, as determined by the state's annual survey, is what ultimately applies. Local units of government simply use the state-certified rate for their conununity on their own projects. GJ 16B5 CROSSTOWN BOULEVARD N,W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US TO: Mayor and Council Members FROM: Jim Dickinson, City Administrator _ I Will Neumeister, Community Developme t DirectorC(.ti.- SUBJECT: Subdivision Code (Street Width and Cul-de-sac Length) Discussion DATE: July 24, 2007 INTRODUCTION During the staff's preparation of the update to the Subdivision Code, two issues surfaced that need the City Council's input. The issues involve what the code says about street width and cul-de-sac length. The Fire Chief provided a memo explaining his position on both issues. The fIrst issue involves the width of streets in rural areas. The subdivision code has been proposed to be changed to say the street should be 31 feet wide. The Fire Chief is of the opinion that if the streets are 31 feet wide they need to be signed on one side of the street (NO PARKING). His memo will describe why this should be changed for fIre safety concerns he and the Fire Marshall have. The second issue involves the length of cul-de-sacs and why they should not be longer than 500 feet. The Fire Chief explains his reasoning in the attached memo. ANALYSIS The City Engineer supports the change to 31 feet in rural areas (which has been the standard for the last 5 years). The Fire Chief is of the opinion that the 31 foot width works with signs on one side of the street but he would prefer the 33 feet of width without signs. Past cases where the cul-de-sacs were longer than 500 feet were addressed as variances at the time of platting and were approved by the City Council. ACTION REQUESTED The City Council is asked to provide staff direction on how they would like to handle width of streets in rural areas and maximum length of cul-de-sacs, as these issues should be addressed in the subdivision code update. Respectfully submitted,j Will Neumeister ~ Attachments Fire Chiefs Memo Sections of Proposed Code 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 the proposed uses of the area to be served. B. Continuation Of of Existing AM and Future Streets: The arrangement of streets in new subdivisions shall make provision for the continuation of existing and future streets in adjoining areas. C. Frontage Restrictions: No preliminary plat shall be approved wherein lots front on the right-of-way of state, county, or city arterial or maior collector mads streets. ,Such lots may front on service roads with entrances to the above or at intervals as determined bv the County or City. ~ hl<ln~re~ silGj' feet (66Q') fer aFter-ials an~ three hl<ln~re~ thiFty feet (33Q') fer eelle5teFS. (Amended Ord. 10,2-15-1972) 11-3-3: STREETS: A. Widths: 1. All right of way and rea~'.'Jay street widths shall conform to the following minimum dimensions: Typical Rea~'.\'ay , RiQht of Way street Width Back of Classification Curb to Back of Width Curb Cl<IrlEl Faee Te CurIEl Faee Arterial 120 feet Variable 80-120 feet. as Collector maior IFJll<Inieipal determined bv Variable state ai~ the City Enaineer Collector - minor 66-100 feet. as determined by the City Enaineer Miner (uman) Local urban 60 feet 32 feet 33 feet city street. Miner (rural) Local rural city 60 feet 24 feet 31 feet street Cul-de-sac 120-foot 93 foot diameter diameter Service 60 feet 33 feet ~ 4=:- 21 22 2. Additional right-of-way and street widths may be reauired WHy 23 depending upon anticipated traffic volume, planned function of street 24 and character of abutting land use. and fire code reauirements. 25 -2- 1 B. 2 3 4 5 C. 6 7 8 9 10 11 12 D. 13 14 . 15 16 E. 17 18 19 F. 20 Horizontal Curve Radius: The minimum horizontal curve radius on minor streets shall be frftyfeet (50') or as required by the City Engineer. (Amended Ord. 10,2-15-1972) Grades: Streets grades shall not exceed seven percent (7%) for local miAeF and collector streets and four percent (4%) for arterials tA8reLlgRfares, and in no case shall they be less than one-half percent (0.5%) on streets with concrete curb and gutter...; er eRe pereeRt (1%) eR miRer rLlFaI sit)' street seGtieRs. Grades within thirty feet (30') of street intersections shall not exceed two percent (2%). (Amended Ord. 10, 2- 15-1972; amd. 2003 Code) Vertical Curves: Different connecting street gradients shall be connected with vertical curves. Vertical curves shall be designed in accordance with MNDOT guidelines with a minimum design speed of thirty (30) miles per hour or as required by the City Engineer. Street Jogs: Street jogs in local miAeF and service streets shall have a centerline offset of not less than one hundred fifty feet (150'). Street jogs shall be avoided in all other streets. Local MiAGF Streets: Local ~ streets shall be so aligned that their use by through traffic will be discouraged. 21 G. Cul-De-Sacs: The maximum length of cul-de-sac streets shall be five 22 ~ hundred feet (500') measured along the centerline from the intersection to ~- 23 the center of the cul-de-sac area. Each cul-de-sac shall have a terminus of 24 nearly circular shape, with a minimum right-of-way diameter of one 25 hundred twenty feet (120.0'), and a minimum roadway diameter of ninety 26 three feet (93.0') in the urban service area and the rural service area. 27 Temporary cul-de-sacs shall be required in all new subdivisions to make 28 provision for the continuation of future streets in adjoining areas when the 29 length of the street exceeds two hundred ten feet (210.0') from the 30 centerline of the intersecting streets. Each temporary cul-de-sac shall be 31 required to have a minimum roadway diameter of eighty feet (80.0') and 32 constructed with concrete curb and ~utter. bitLlmiReLls sLlFbiRg as 33 ~efiRe~ iR tAe sit)' staR~ar€ls. .^.€fjas8Rt prep8ft1.," ProDertv 34 owners/developers benefiting from the street continuation shall be 35 responsible for the removal of the temporary cul-de-sac and shall be 36 required to replace the street in accordance with current city requirements 37 and standards. The property line at the intersection of the tumaround and 38 the straight portion of the street shall be rounded at a radius of not less 39 than twenty feet (20.0'). 40 41 H. Service Streets: In those instances where a subdivision abuts or contains -3~ Andover FIRE DEPARTMENT Memorandum Date: July 16,2007 To: Mayor and City Council From: Dan Winkel, Fire Chief j) uJ. Subject: Proposed Expansion of Cul-De-Sacs The fIre department staffhas learned that as part of the Subdivision Regulations review and update there may be a proposal to extend the dead end cul-de-sac design standards to a maximum length of 750 feet. The current specifIcations call for dead end cul-de-sacs to not exceed 500 feet. The specifIc item is located in Chapter 3, Section 11-3-3, G, Cul-De-Sacs of the Subdivision Regulations. The fIre department staff would not recommend extending the dead end roads to 750 feet for the following reasons: · Should the road(s) become blocked for any reason; emergency vehicles will not have access to help with emergency situations including fIres and medical incidents, Carrying patients for extended distances is not advised or recommended. · The additional length will cause difficulty for the fire department to meet or exceed the minimum water flow rates required for structure fITes should the road become inaccessible at any point along its length. In order to properly and safely maintain the required 1,000 gallons per minute of water, the fIre department must have a pumper truck positioned about every 500 feet. The trucks should be placed and pumping in series so friction loss and pump capacities are not exceeded. In order to flow 1,000 gallons a minute of water the fire department needs to have one large diameter (5") hose placed the entire length or multiple 2 1/2" hose lays, each of which is capable of supplying only 250 gallons per minute. If the fITe department would have to use all 2 \12" inch hose to supply water the entire 750 feet, we would not have enough hose on all of the fire trucks responding to meet the demand. The need to call for mutual aid trucks would be a high priority, Note that the average amount of water flow used in recent history has been in the neighborhood of 600 to 700 gallons per minute during the peak of most events. The fIre department has had to flow 1,000 gallons per minute or more on only a few occlli'!ions. · FirefIghter safety also must be considered when evaluating extended roadway lengths. The long hose lays and potential patient care issues will cause all emergency responders to heavily exert themselves to perform their jobs should access be hampered or blocked. - ~..- . The long dead-end fire apparatus access roads can also present unique road width issues when trying to get fire trucks in and out of the area. It is imperative that a full and unobstructed 20 feet wide access is maintained at all times. The currently proposed 31 feet for rural roads would require the roads to be posted with fire lane parking on at least one side in order to keep the 20 feet width at all times. The proposed 33 foot urban section width is to be considered as a minimum width. Since vehicles and trailers are allowed to be 8 feet wide, the road widths should be a minimum of36 feet wide for parking to be allowed on both sides of the streets. In the past, staff has considered that most vehicles and trailers are somewhat shorter than the 8 foot wide and have not had much of a problem with the 33 foot wide roadways. In order to reduce the number cifroadways that may be too narrow or dead ends too long, and if the City Council is interested in extending fire access roads to 750 feet, staff recommends the adoption of Appendix "D" of the 2006 International Fire Code. Appendix "D" has been included for your review. It is important that a few of the conditions outlined in Appendix "D" be mentioned and highlighted. The 2006 Minnesota Fire Code including the International Code will be presented to the City Council in August for adoption. * Note that if accepted and approved by the City Council, all of the provisions of Appendix "D" would be required and mandatory. ~ If access roads are constructed with a length of 50 1 to 750 feet, and width of26 to 32 feet, then the roads shall be posted on one side as a fire lane with no parking. ~ Fire access roads 20 to 26 feet wide shall be posted on both sides of the road as fire lanes with no parking. ~ There will also be mandatory requirements for two approved access roads as listed in Section D 106, ~ Section D 104 would require three approved access roads for structures exceeding 30 feet in height. ~ Buildings that exceed 62,000 gross square feet shall have two approved fire access roads unless the building(s) are equipped with automatic fire sprinkler systems. ~ The Appendix "D" also has designed turnarounds that would be reviewed by staff and approved for use. The designs are minimum standards and could change to wider, but not narrower, dimensions if the Subdivision Regulations call for it. The fire department is also recommending that the words, "Fire Code requirements" be added to Section 11-3- 3-A-2. The additional street widths should also include the Fire Code requirements when it is appropriate. Fire department staffwill be available should you have questions or comments about the proposed Subdivision Regulation changes. -5- (J) 1685 CROSSTOWN BOULEVARD N.W, . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US TO: Mayor and Council Members FROM: Jim Dickinson, City Administrator / Will Neumeister, Community Develop ent Director 0'cU...--- SUBJECT: TIF 1-4 Industrial Opportunities Discussion DATE: July 24, 2007 INTRODUCTION About a month ago, City Code Enforcement staff requested Rick Lindquist provide information related to what is the current status of the site where Northern Cylinder Heads and LePage Rolloff Service is operating. The staff determined he needed a Conditional Use Permit (CUP) to operate the rolloff service on the property. Mr. Lindquist and LePage have provided the information needed to process a CUP. Their CUP application is considered complete and the 60-day review period (can be extended an additional 60 days if needed) is underway. Before staff begins processing the CUP, Council is requested to provide direction. Attached is the information provided by Rick Lindquist and LePage's Manager on what they are seeking approval on and an explanation of their operation on the site. Last month, staff brought up two options for the Council to consider in dealing with the various property owners at Hughs Industrial Park. Option 1 was to create a new zoning district, sayan 1-2 zone to establish a different set of standards for the rural industrial park. Option 2 was to establish an interim use permit until sewer and water become available. The second option seems to be the best to pursue, because it is allowed by State Statute and will be easier to implement, and be more flexible. The current city code requires the entire site be brought up to the City's zoning standards including: parking lot pavement, curb and gutter, landscaping, lighting, etc. The issue that staff needs direction on is how stringent does the Council want to be in implementing the standard zoning requirements. The City can not waive or modify Building/Fire Code and NPDES requirements. The City may have discretion over how much of the city zoning standards apply to these businesses if the City were to create an "Interim Use Permit" in the city code. The City Attorney advised staff that Minnesota State Statute 462.3597 allows the City to adopt "interim uses" into the City Code and set up the parameters under which an "interim use" may be granted. See attached State Statute section 462.3597 for further details. ANALYSIS The basic issues staff seeks Council's direction on are: 1. Does the City Council want to work with Rick Lindquist and LePage Rolloff Service to become a legitimate outdoor storage use on the property with a Conditional Use Permit (but have only limited zoning standards apply)? 2. Does the Council want staff to prepare a Zoning Code Amendment to enable "Interim Use Permits" to be granted in areas like the Hughs Industrial Park with interim zoning standards that require very basic interim improvements (say limited cosmetic or screening improvements) but not all city standards? 3. What level of zoning code requirements will be required of Mr. Lindquist? To gauge what level of requirements the Council wants staff requests answers to the following questions: a. Does the Council want outdoor storage areas to be located so that they cannot be seen from people driving by the site? b. Does new screening need to be installed to shield the view ofthe outdoor storage? c. Does the front parking lot for customers need paving (with curb and gutter) and/or does the entire parking area for trucks and rolloffs need to be paved? d. If paving is not required will dust control measures need to be implemented where the trucks and rolloffs are located to hold dust to a minimum? e. Should the building owner be required to paint the building, make other cosmetic improvements to the structure and/or install some minimum level ofIandscaping? f. How many rolloffs will be allowed on an interim basis? g. Do the rolloffs need to be tarped or covered at all times if debris is in them? h. Will construction debris be all that will be allowed to be in the rolloffs? Provided this is something that the Council wants, staffwill write a Zoning Code amendment that would only apply to Hughs Industrial Park and give the City the latitude that would enable the CUP to be processed as expediently as possible. Answers to these questions will provide staff enough direction that we can begin to make the adjustments needed to the City Code and start the process of processing the CUP for Rick Lindquist. Staff has discussed the minimum needed improvements that must be made and they basically involve providing basic aesthetic improvements discussed above (with limitations on how extensive the storage ofrolloffs will be before either further permission is needed, or the interim period expires). Without the owner willing to make some level of commitment, the staff does not feel there is support for the Interim CUP to be created, adopted and apply to this situation. ACTION REQUESTED The City Council is asked to provide staff direction on how they would like to handle these issues on the LePage RolloffService C.U.P. and the "Interim Use Permit" Code establishment. NOTE: The Council discussion and decision is likely to affect all the owners at the Hughs and Westview Industrial Parks, so they are being sent a copy of this report and will likely come to the meeting. Respectfully submitted, ~ Will Neumeister Attachments - State Statute Section 362.3597 Letters from Rick Lindquist & LePage & Sons, Inc. Cc: Rick Lindquist, c/o Boanda Properties, LLC, 3118 I 620d Lane NW, Andover, MN 55304 LePage and Sons, 613 -111th Avenue NE, Blaine, MN 55434 All property owners in Hughs and Westview Industrial Parks NORTHERN CYLINDER HEADS 3118 - 162ND Lane NW Andov r, MN 55304 FlECEIVED JUN 5 2007 June 4, 2007 Mayor and Councilmembers City of Andover 1685 Crosstown Blvd. NW Andover, MN 55304 CITY OF ANDOVER Re: Conditional Use Permit for 3118 I 62nd Lane Please consider this letter as my request for your consideration of a Conditional Use Permit for the purpose of outdoor storage of roll-off dumpsters on the above referenced property in an Industrial Zoning District. I was not aware of the City Code requirement for such a permit as the property was being used for this purpose at the time of my purchase in 2005. An inspection by Mr. Cross advised me ofthe requirements to be in compliance with City Code. Following is general information relating to my permit application: . No garbage will be in containers on-site. . Containers will hold construction waste only. . Containers, if full, will always be covered. . Plan is to relocate containers pursuant to site plan. . Total maximum containers on-site will be 13 of which 10 will be empty . Full containers will remain on site no longer than 3 days. . LePage & Sons have designated trucks and trailers to pick up full containers for disposal, however, due to holidays, weekends, Saturday pick-up and equipment breakdowns the maximum 3 days storage are required. Proposed property improvements: . Paint Building . Landscape Front Yard . Wood or Concrete Front Fence It is my understanding that I am to be in attendance at the City Council Meeting as well as the Planning and Zoning Commission. I will be available for anyone to contact me at 612-810-6098 to answer any questions or provide additional information. Thank you for your consideration. Sincerely, ~ - Rick D. Lindquist Northern Cylinder Heads CC: Planning & Zoning Commission Jim Dickinson, City Administrator Will Neumeister, Community Development Director Courtney Bednarz, City Planner Andy Cross, Associate Planner -3 - 613 -11lth Ave. NE Blaine, MN 55434 763.757.7100 763.772.0633 fax www.LePageandSons.com web June 4, 2007 Mayor and Council Members City of Andover 1 685 Crosstown Blvd NW Andover, MN 55304 RE: Request for Conditional Use Permit LePage and Sons Inc. would like to respectfully request the consideration of the Mayor and City Council of Andover in the issuance of a conditional Use Permit (CUP) for the property located 3118 162nd Lane NW. Mr. Lindquist's letter will outline the conditional use permit request as it pertains to Title 12, Chapter 12 "Outdoor display, Storage, and Sales" of the city code. We have operated from this location since the fall of 2005 and not until recently did we discover that we were in violation of City code. Knowledge of similar operations from this industrial zoned location prior to our arrival lead us to believe our business would be compliant with code. We are a family owned locally operated business wjth a successful past and bright future in the community. We take a great deal of pride in our work and our contributions to the communities in which we work and live. We would like it to be known that we would never knowingly violate city code. The primary focus of our business is to supply waste solutions to local contractors, business and residents. We are strictly a Rolloff business with primary focus centered on the construction industry, with many of our customers and clients living and working within the city of Andover. We are committed to working diligently with Mr. Lindquist to make the necessary improvements outlined in his request in a manner that is both fiscally and timely prudent. We would look forward to the opportunity to review the requirements necessary to bring the property with in compliance to continue our operations from this location and remain a part of Andover's' strong business community. Sincerely, c ~~1~ Dave King General Manager Lepage & Sons Inc. Ph: 763-757-7100 CC: Planning & Zoning Commission Jim Dickinson, City Administrator Will Neumeister, Community Development Director Courtney Bednarz, City Planner Andy Cross, Associate Planner -1"- Locally Owned and Family Operated o ~ Q) ~ ..... - (J) CD II-g~ :J1 CD ..... ::;l :::::! ::;l 0 ex> w ..... ..... ex> ..... ~Z ~O a.::i- r:;r ZCD ..., Z::) ~() - '< )>== ::) ::) 0..0- o ~ < CD ..., s: Z 0'1 0'1 W o ./::0. I CD Q) 0- m sse.l~ :\\'''' p.lsOdO.1d 162nd Lane NW ..... ..0 ,tS ~ ~~~~ ~__l__~ 1 ~l r.'::: ~~ " - = '" "'; 0" =:- :: i5 C i " A '" .... ~ '=; ... aleE) ap!M ,~G ? ;; " .......0 ,81'< ~ ... ..9 ,01' ~ ... ,,9 ,tS ~ -<It ..0 ,9S III- r <0' ;;t ...!o . o e ra oiG :r ,\')'(\l.\ ~\).\:\\"'I..\ '",\\l)' () . ,~L ~l\\\?"'~ ",:\~\').J,.. :::h'\:'\!'c.\ :\.\\, l~"'" ~'"J"" .:::u\).~.t\. p,ll, .~. "'^')~ :r,\\\).\"c.\ ~.,{\).).. ~" '. 1IS\.\} ,,'(\).'\. "" :::u\).~.l3. . .,~~ . o r <5' ;;t -0 ~ o "t:I o '" ~ 0- Cl o ::l ... !!!. ::l ~ ~ 0'.0 5 o ;;t o Cl ~\ -.>- lA, North tiiFl ::: ~ '" - :::: :::' 'J"~ = ~~ 1 ~ 1 'f' I -~rr.4.~~-.~.U- _______(5.../..Lfe.. _... .. ._-e... . .... 462.3597 INTERIM USES. Subdivision 1. Definition. An "interim use" is a temporary use of property until a par- ticular date, until the occurrence of a particular event, or until zoning regulations no longer permit it. Subd. 2. Anthority. Zoning regulations may permit the governing body to allow inter- im uses. The regulations may set conditions on interim uses. The governing body may grant permission for an interim use of property if: (1) the use conforms to the zoning regulations; (2) the date or event that will terminate the use can be identified with certainty; (3) permission of the use will not impose additional costs on the public if it is necessary for the public to take the property in the future; and (4) the user agrees to any conditions that the governing body deems appropriate for per- mission of the use. Any interim use may be terminated by a change in zoning regulations. Subd. 3. Public hearings. Public hearings on the granting of interim use permits shall be held in the manner provided in section 462.357, subdivision 3. History: 1989 c 200 s 2 -L- CITY OF NDOVE (j) 1685 CROSSTOWN BOULEVARD N,W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923. WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: 2008-2012 Capital Improvement Plan (CIP) Update DATE: July 24, 2007 INTRODUCTION The 2008-2012 CIP is well under way; staff is providing monthly updates to the Council on progress. Currently, staff is focusing on equipment items for the CIP (listing attached). Throughout the summer it is anticipated that a significant amount of time will be spend on evaluating water/sewer infrastructure, transportation improvements, building maintenance, equipment and park and recreation needs. Each of these items will be supported by detailed cash flow analysis of funding sources and presented to the Council for review at future workshops. At this time the Staff is responding to Council Questions from the June 26th workshop review, underlined items will be reviewed in 'more detail at the meeting. DISCUSSION #1 #196 Frame Extension Questions A. The Cost looks high: The cost is high because we are only reusing the truck chassis, front plow, front plow mount, under body plow, wing and the hydraulics. We have to purchase a new V-box sander/spreader, hydraulic hook/cylinder extra hydraulic parts, remount the wing to a rear mount style and extend the frame rails. A new truck chassis is running around $65,000.00 the new 2007 emission requirements have caused a huge jump in motor prices. B. Why extend versus buying new? This truck has only has 36,000 miles on it. The chassis frame is too short to install a hook lift on it the way it is. The hook gives us more versatility and we should be able to use the truck more through out the year. The truck motor and chassis only have a faction of hours and miles that most of the industries has before they would even consider replacing it. Basically we are only saving the cost of a new truck chassis. The plows, hydraulics, and the rest of the mounting hardware are used. C. What will this vehicle do? This vehicle will be become a more efficient snow plowing vehicle, rear wing design. The hook truck capabilities will let it be used the rest of the year moving equipment, hauling the hot patcher and what ever else we decide. If we purchase a water tank it could be used for watering trees and flushing storm sewers or hauling water to the street sweepers. The list could go on, it depends on what other accessories that we buy or build. #2 Fire Tanker #31 Why now? The replacement could wait just like all of the scheduled vehicle replacements. This truck has been in the C.I.P. for many years and this happens to be the time to look at replacing it. The Fire Chiefs big concern is not only this truck but the three other fire trucks that are scheduled in the next three years. We can not afford to get behind with the replacement for too long of a period. The ladder truck alone will cost between $850,000 and $950,000 to replace with at least one years lead time on the order. The maintenance costs are on the rise and the truck has 20 year old technology that Fire would like to replace, A big part of the "new" truck and technology is the capability for one person to operate the vehicle and dumping cycles all from within the cab at the driver's position. The current truck needs at least two firefighters committed to it for most operations oil the fire ground. The new chassis and cab designs allow for much better visibility and operational site lines than in the past. The old tanker could be sold as is. The Fire Department have already had two inquires about this truck and if and when it may be available. The Fire Chief indicates that it would be appropriate to set a minimum price when we advertise the truck for sale, but keep in mind that specifications for the new truck will take a number of months to complete and the bidding, ordering and manufacturing will take up to one year to finish. #3 Phone System Replacement Please refer to the attached documentation provided by our current phone system vendor. #4 New Jet/Vac Truck In response to Council's concern of having two jet/vac trucks and the cost, staffis researching outsourcing, sharing opportunities and other types of equipment. Staff is currently evaluating whether or not a replacement truck (and selling the current truck) rather than the addition of a new truck will meet the increasing needs in the City. The final staff recommendation will be brought forward at the August workshop. ACTION REOUESTED The Council is requested to review the staff report and attachments, receive a brief presentation on progress, and provide direction to staff. Attachments City of Andover, MN Capital Plan 2008 thru 2012 PROJECTS BY DEPARTMENT Department Project# Priority 2008 2009 2010 2011 2012 Total Central Equi pment J Replacement- Hotsy Pressure Washer 09 -08600 -01 3 7,000 7,000 Replacement - Floor Sweeper 10 -08800 -01 1 35,000 35,000 Replacement - Service Truck 11 -08800 -01 2 28,000 28,000 Central Equipment Total 7,000 35,000 28,000 70,000 Community Center Battery Pack Replacement - Zamboni 0944000 -01 2 7,000 7,000 Kitchen Equipment - Fryer /Grill 0944000 -02 2 7,000 7,000 Community Center Total 14,000 14,000 E l e cti o ns Voting Equipment 1041310 -01 1 110,000 110,000 Elections Total 110,000 110,000 Eng i nee ring Replacement - Blazer #11 09111600 -01 2 30,000 30,000 Engineering Total 30,000 30,000 IFaci6ty Management Phone System 08 41900 -10 1 100,000 100,000 Facility Management Total 100,060 100,000 Fire Replacement - Fire Tanker #31 0842200 -01 1 295,000 295,000 Replacement - Fire Engine #11 0942200-01 1 400,000 400,000 Replacement- Fire Marshall Vehicle 0942200-02 2 30,000 30,000 Water /Ice rescue boat 0942200-03 1 20,000 20,000 Replacement - Ladder Truck #11 10- 42200-01 1 850,000 850,000 Replacement -Fire Chief s Vehicle 1042200 -02 2 40,000 40,000 Replacement - Tanker #11 1142200-01 2 300,000 300,000 Replacement - Grass #21 1142200 -02 2 45,000 45,000 Replacement- Grass #31 1142200 -03 2 45,000 45,000 Fire Total 295,000 450,000 890,000 390,000 2,025,000 Par & Rec - Operations Replacement- Utility Box on Sign Truck 0845000 -01 1 20,000 20,000 Department Project# Priority 2008 2009 2010 2011 2012 Total Zero turn mower 08-45000-02 1 8,500 8,500 Replacement - Large Capaci1y Lawnmowet #580 09-45000-01 1 112,000 112,000 Replacement - T oro Groundsmaster, #559 09-45000-02 1 23,000 23,000 Replacement - Trailet, T-554 11-45000-01 2 9,000 9,000 Replacement - One Ton Pick Up wlPlow, #599 11-45000-02 2 65,000 65,000 Replacement - One ton truck wi Plow #503 11-45000-03 2 58,000 58,000 Pam & Rec - Operations Total 28,500 135,000 132,000 295,500 IPlanning & Zoning , Replacement - Ford Taurus #15 09-41500-01 2 25,000 25,000 Planning & Zoning Total 25,000 25,000 !Sanitary Sewer , Replacement - JeWac Truck 08-48200-01 357,000 357,000 Sanitary Sewer Total 351,000 357,000 IStorm Sewer I New Track Backhoe 08-48300-02 2 80,000 80,000 Replacement - Elgin Street Sweeper 10-43100-01 1 150,000 150,000 Storm Sewer Total 80,000 150,000 230,000 IStreet Signs I Replacement - Sign Truck #410 08-43300-01 85,000 85,000 Street Signs Total 85,000 85,000 IStreets / Hi~hways I Replacement - Hot Asphatt Box 08-43100-09 1 40,000 40,000 Replacement - Dump Truck wi Snow Removal #197 08-43100-10 1 200,000 200,000 Extend Frame on #196 for Add'l Attachmenls 08-43100-11 1 75,000 75,000 Truck mounted attenuator(TMA) 08-43100-12 1 35,000 35,000 Replacement - Water Tanker 09-43100-01 2 100,000 100,000 Asphail Paving Machine 09-43100-02 1 90,000 90,000 Replacement - Facility Maintenance Vehicle #1 04 09-43100-03 1 35,000 35,000 Replacement - Dump Truck w/snfYN removal #1 98 12-43100-01 1 150,000 150,000 Replacement - One ton truck wi PlfYN #132 12-43100-02 1 58,000 58,000 Streets / Highways Total 350,000 225,000 208,000 783,000 GRAND TOTAL 1,295,500 886,000 1,185,000 550,000 208,000 4,124,500 Business case for updating the City of Andover's communications technology It has been mutually understood for some time that the day is coming soon that the City of Andover will be due to replace the aging Merlin phone system. What dictated the timing for recommending the replacement of the phone system and messaging now is the current situation regarding maintaining the Object World messaging system. While this is a very capable messaging system there is no local support available for the product. A number of years ago the City of Andover deployed this messaging system which was ahead ofit's time in terms ofthe functionality that it delivered. Since that time the phone system manufacturers have natively deployed advanced functionality on their messaging systems which has hurt Object World financially and shrunk their dealer base. To our knowledge there are no local support options for this product which leaves the City of Andover in a vulnerable position. If the messaging system were to crash it is a real possibility that it would not be restored to service, or at best have a lengthy outage while best efforts of non trained staff seek to restore it. ShoreTel was not the only product that we had to offer the City of Andover, but for a number ofreasons which will be detailed below it was clearly the best choice. Who is ShoreTel? ShoreTel is a 10 year old company which has experienced tremendous success. Up until now it has been a rapidly growing, profitable private company and it just went public. For several years in a row ShoreTel has been named in the independent Numertes research study as having the lowest total cost of ownership and the most satisfied customers. Also in the opportunities where the ShoreTel solution is presented they are selected approximately 70% ofthe time. ShoreTel is the fastest growing IP Telephony , manufacturer in the USA. A comment from a ShoreTel user group sums up the satisfaction level of ShoreTel users "ShoreTel users speak about their phones in a similar way to how people speak about their IPODS". Below are some of the key benefits to upgrading from the current Merlin Legend system to a new ShoreTel system. Disaster avoidance: The current voice messaging system has the support issues listed above, but there are other issues with the phone system as well. You are currently working with old electronics with multiple points of failure which include modules, processor, messaging, and the cabinet. With the exception ofthe messaging we would not have trouble restoring your system in a reasonable amount of time. But the likelihood of a failure is continuing to grow and reliable parts are getting harder to find. By implementing the ShoreTel system you will reduce your risk of phone outages and message losses in numerous ways. This is an IP based system which means that it runs the voice traffic over your data network (I will explain IP in more detail below). There will be several ShoreGear switches installed in your different buildings. In the unlikely event of a switch failure all of the other switches have the entire system configuration on them and will automatically take over for the failed switch. The messaging is on a pc with mirrored hard drives and dual power supplies which means if you lose a hard drive Q) or power supply the messaging system will keep running. Because of the redundancy a phone system or messaging failure is an extremely unlikely event. IP Telephonv A few years ago IP Telephony was considered to be an ultra leading edge technology and a bit risky. This is now a main stream technology and investing in anything that is not an IP Telephony system would be unwise as traditional telephony is on it's way out. There are several key benefits specific to the system being a ShoreTellP system. I Your ongoing cost of ownership will be lower as you will only have the data network to maintain. 2 Your ongoing management costs will be lower as the phones can be plugged into any data jack in any of your buildings and will automatically come up as the intended user. No longer will you have to call a phone vendor to wire a phone jack or make changes in the phone room. 3 You can integrate to applications such as Outlook for screen popping a caller id match or dialing out of contacts. 4 Connecting buildings via existing data network. You can connect multiple buildings without the need for phone lines between sites. With this level of integration you will become one virtual facility with all features between callers the same regardless of which facility they are in. 5 Off site workers - if an employee goes on Maternity leave or wants to work from home for any reason this can easily be accomplished with no loss of functionality. Risks oflP Telephony I Poor call quality: This happens when there is not enough attention to detail.on the data network. We have addressed this by including data switches in your proposal that are intelligent enough to prioritize voice traffic ahead of data in times of congestion. 2 Loss of phones during a server reboot. This will happen on most IP systems, but not on the ShoreTel. The ShoreTel system is not dependant upon a pc or spinning hard drive to generate dial tone. The system is built on flash memory and utilizes the VX Works operating system which also operates things such as pace makers and lunar space craft. This would rarely require a reboot and functions with ultra high reliability. Scalability As the city adds facilities the ShoreTel system can grow with you. You can add many facilities an have up to 10000 users without any major hardware changes. Empower the city employees. Included in this proposal is a software which maps the users phone to their computer. ShoreTel is known for it's ease of use and this application adds to that. To forward a phone to a cell phone just takes a click of a mouse. Or to make a conference call (up to 6 parties), record a call, send a caller to voice mail, notifY others that your are out of the office, see whether co workers (within the same building or in other facilities) are on the y phone or have their do not disturb pressed, or change your call handling mode with a couple of key strokes. Ease of administration Most routine changes such as adding a user, setting up voice mail, resetting passwords, enabling the voice mail to email functionality can be done in house without needing your phone vendor. These changes can be performed by your administrator anywhere that internet access is available. This equates to faster service and lower cost. And when you do need assistance from a technician most changes can happen remotely. Length of service No longer will you have to deal with processors or modules becoming obsolete. The ShoreTel system has been around for 10 years and the customers who purchased the original switches are able to run the current software. Included in the monthly maintenance are software updates. This means that you will always be dealing with current software which will give this system a long run time with excellent functionality. Summary: Transcend Communications has a long history of delivering service excellence to the City of Andover. The proposed solution is the best solution available on the market and is being offered at a competitive cost. This will clearly reduce risk to the City of Andover and improve efficiency amongst users. s AT R Call transfer, Call transfer, consultative Call transfer, intercom Call transfer, mailbox Call waiting Caller ID name Caller ID number Caller ID blocking Directory dialing Distinctive dial tone Distinctive ringing E911 Group paging Handsfree Hot key pad InstaDial Intercom Night bell Message waiting Missed call Multiple line appearance Music-on-hold Operator ('0") On hold reminder ring Office Anywhere TM Outbound caller ID Paging Redial Ring tone selection Speed dial Silent monitoring Voice mail ('#') Whisper page T.... types Analog loop start Analog wink start T1 loop start T1 wOlk start T1PR1 oNI2 o 4ESS . 5ESS o DMS 100 oOSIG E1 PRI o EURO-ISDN oOSIG SIP o RFC 3261 - SIP . RFC 2976 - SIP INFO o RFC 3891- SIP Replace o RFC 3515 - SIP Refer o RFC 2396 - URI o RFC 2388 - DTMF TnmIc F_ ANI Automatic trunk maintenance Caller ID name Caller ID number Centrex flash Dial-in prefix Dial-out prefix DID Digit translation DNIS Network call routing NetworkAJser side PRI Off-system extensions Tandem trunking Trunk groups IP phone suppott MGCP VlAN (DHCp) ToSIDiffDerv UDP 5004 (patent pending) b s R DSP features Dynamic echo cancellation Dynamic jitter buffer Lost packet handling Voice compression . Unear oG.711 o ADPCM o G.729a System features Account codes Admission control Backup auto-attendant Bridge call appearance Call permissions Extension length (3-5 digits) Fax redirection Feature permissions IP phone failover Media encryption Office Anywhere TM On-net dialing (1-7 digits) Power fail transfer PSTN failover SMDI SNMP Hunt groups Simultaneous hunt Top down hunt Single or muitiple calls per extension Busy out group Busy out extension 16 extensions max. per switch 5 groups max. per switch Call forward busy Call forward no answer Scheduled modes ShoreTel 10M/100M Ethernet (RJ--45) Analog Audio ifl>Ut and output (mini) TlI El IRJ-48O T1/E1 monitor(RJ-48C) Maintenance (DB-9) 2 RJ-11.RJ-21X 2 R,J-11, RJ-21X Dimensions 17.16 in. x 1.72 in. x 1428 in. 17.16 in. x1.72 in. x 14.28 in. FEATURE SUMMARY Page 2 2 RJ-11. RJ.-21X O"toSO'C 0-90% non-rondensing -3O"to 7Cf C 7 ShoreTel FEATURE SUMMARY Page 3 " ,- . .. H ..- ...... ...... < ...... ....<. <---- ...................... 1.......<< ................ 1< ..... < ............. Call apPearance I :,,::" . 3 (G""", LEOs) 12 (T ri--color LEOs) 1 24 cr ri-color LEOs} 1 ... .. .~II 8(T........,_ 8 (T...-.le<, conference, 6 (Transfer. conference, N/A 8 (Hold, redial, hold, ""'"""', ndaI/ hokt. i1tercom, redial / hold, intercom, redial, goodbye, options, history, vofre mail. history, voice mail. voice maiO directory, history, options, d"""">l optior<;.d".-ectayl copy. services) "" Soft keys 4 4 2 No N/A 6 Display 24 dlaracters x 7 lines 24 characters x 5 rmes 13 character5x Slines 16 characters x 1 line 12 characters x 14 lines 20 characters x 5 lines 168 x 80 pixels 120x35 pixels 65 x 56 pixels 80 x 7 pixels 80 x 168 pixels 100 x 35 pixels Backlit. grayscale BackUt. grayscale Speakerphone (full duplex) Yes (lED) Yes (lED) Yes (lED) No (speake- only) N/A Yes (LED) Mute Yes (lED) Yes (lED) Yes (lED) Yes N/A Ve, Volume controls Handset. speakerphone Handset, 'f>O"kerphone, Handset. speakerphone Handset, speakerphone. N/A Handset headset,. alert I rings headset, alert! rings headset. alert I rings alertJ rings Headset compatibility RJ-22 (lED) RJ-22 (LED) RJ-22 (lED) External N/A External Color Silver, black aluminum Silver. black plastic Silver, blade plastic Silver. black plastic Silver, black plastic Black plastic 1'elItunIs. . ...... .......... < ....... < " .............<. ......<<............ ..)<< ........< ..<. ...... ...." .... Call redirect Yes Yes Yes No N/A No Call timer Yes Yes Yes No NlA Yes Caller ID name, number Yes Yes Yes Yes NlA Yes Conference call mgmt. 6 party 6 party 6 party 3 party N/A 3 party Directory Unlimited (system) Unlimited (system) Unlimited (system) No N/A 200 OocaQ Message waiting (LED) Yes Yes Yes Yes NlA Yes Missed call indicator Yes Yes Yes No N/A 100 number list Redial I history Last 20 numbers Last 20 numbers last 20 numbers Last number N/A last 10 numbers Ring tone selections 4 4 4 4 N/A 4 Speed dial Unlimited Unlimited Unlimited N/A N/A 200 Time and date Yes (SNTP sync) Yes (SNTP "",cl Yes (SNTl' 'l"'cl Yes (SNTP "",cl N/A Yes (Caller ID sync) Transfer to voice mail Yes Yes Yes No N/A No OptionMonogement .. . .......... .)<i....... ........., ...... ....... ... Call handling mode Yes Yes Yes Via voice mail N/A Via voice mail I Call forwarding Yes Yes Yes No N/A No Handsfree mode Yes Yes Yes No N/A No Ring tone Yes Yes Yes No N/A Yes OocaQ Agent state Yes Yes Yes Via voice mail N/A Via voice mail IP .......... Ii> ..... / ............. i... .... //.. ....... <..<....... Protocol MGCP MGCP MGCP MGCP MGCP N/A Quality of service VLAN, DiffServlToS, VLAN, DiffServlToS, VLAN, DiffServlT oS, VLAN, DiffServlT 05, VLAN, DiffServlToS, N/A UDP5004 UDP5004 UDP5004 UDP5004 UDPS004 Supported cod"", Wideband Wideband Wldeband Wideband N/A NlA G.711 u/A G.711 ulA G.711 u/A G.711 u/A G.729A G.729A G.729A G.729A Power (standard) S02.3af PoE S02.3af PoE 802.3af PoE S02.3af PoE 802.3af PoE Local adapter Power (optionaQ Local adapter (optionaQ local adapter (optionaQ Local adapter (optionaQ local adapter (optional) local adapter (optionaQ PoE power forwarding Ethernet 101100,10110011000 101100 Swit<h 101100 Swit<h 1011 00 Swit<h 101100 Swit<h N/A Swit<h If addressing DHCP, Static DHCP, Static DHCP, Static DHCP, Static DHCP, Static N/A T........ SpociIimtiot.. i. ............ ........ < .. ...<...i...>.... >i< >ii ....... .... ....ii .....iiii Size 11.6x7.5 x 5.3 (in) 9.5 x6.8x5.2 (in) 9.5x6.8x5.2{ml 5.9x6.8x5.1 (in) 5.9x5.7x4.00n} 4.75 x 6.0 x 5.5 On) 29.5 x 19.1 x 13.5 (an) 24.1 x 17.3 x 13.2 (an) 24.1 x 17.3 x 13.2 (an) 15.0 x 17.3 x 13.0 (an) 15.0x 14.5 x 10.2 (an) 12.1 x 15.2x 14.0 (an) Weight 2,6Ib/l.2kg 2.1Ib/l.0kg 2,llb/1.0kg 1.6Ib/O,7kg 1.1Ib/O.5kg 2,Olb/O,9kg Power (idle/active) Class 2 PoE Class 2 PoE Class 2 PoE Class 2 PoE Class 3 PoE 16VOCx250MA (3,4 W /6,4 W) (3,1 W/5,1 W) (3.1W/5,1W) (3.0W/3.9W) (2,9W/4,6W) Interfaces RJ-45 Ethernet uplink RJ-45 Ethernet uplink RJ--45 Ethemet "*"" RJ..45 Ethernet uplink RJ-45 Ethernet uplink RJ-11 line jack: RJ-45 Ethemetdownrrnk RJ-45 Ethernet downlink RJ--45 Bhemet downIinl RJ-45 Ethernet downlink RJ-45 Ethernet downlink RJ-45 Ethernet downlink RJ-22 handset jack RJ-22 handset jack: RJ-22hand.etja<X RJ-22 handset jack RJ-22 handset jack RJ-22 headset jack RJ-22 headset jack RJ-22 hea<hetja<X Loop length 100 meters 100 meters 100 meten; 100 meters 100 meters 3000 feet or more Hearing-aid compatible Yes Yes Yes Yes Yes Yes <6' BroWSer'basedi Centralized administration, Call control Voicemail Automated attendant Workgroups Call detail reporting Multi-user access Multi-level access control User ID and password protection User groups Call pennissions Telephony pennissions Voicemail pennissions Vokemai/ 10,000 mailboxes 21 servers 3,000 mailboxes/main server 2,000 mailboxes/distributed server 254 calls/server Unlimited storage Messaging controls: . Play . Record . Pause . Rewind . Fast forward . Delete . Save . Skip . Reply . Forward Compose features: . Mark urgent . Address by extension . Address by name . Address by distribution list . Broadcast Call handling modes FIVe personal modes: . Standard . In a meeting . Out of office . Extended absence . Custom Call forwarding Greeting Transfer to personal assistant Recorded name FindMe FEA TU RE SU M MARY Trunk groups Dialing plans Dynamic configuration Automatic synchronization Unattended restart Online help Mamerwxe Real-time monitoring Event reporting Email event notification SNMP Online help Call Detail Repcwting CDR database Integrated archival Bundled reports: User activity Trunk activity Message notillcation: . Stutter dial tone . FSK message waiting . Dial pager . Dial extension . Dial external number Management features: . login security . Change password . Force password changes . Password-length limits . Voicemail pennissions . Message length . Number of messages . Broadcast . Distribution lists . Message notification . Automatic message forwarding Legacy integration . SMDI Auto AttencIant 256 menus 256 levels 256 schedules 254 calls/server Extension access DID access DNIS access Play and record prompts CNer Telephone or PC Scheduled modes per menu (4), . On-hours . Off-hours . Holiday . Custom Single digit actions: Page 4 Workgroup agent activity Workgroup queue activity WAN activity Third party integration Space-delimited CDR output Dial Plan Support Australia Malaysia Brazil Netherlands Canada New Zealand France Portugal Gennany Singapore Hong Kong Spain Ireland United Kingdom Italy USA Language Support English (UK) Gennan (Gennany) English (US) Spanish (Spain) French (France) . Dial by first name . Dial by last name . Go to extension . Gate menu . Hang up . Repeat prompt . Take a message . Take a message by first name . Take a message by last name . Transfer to extension Multi-digit actions: . Go to extenion . Go to menu . Take a message . Transfer to extension Other actions: . Time out (configurable) . Too many errors . Invalid entry Dial Plan Support Australia Malaysia Brazil Netherlands Canada New Zealand France Portugal Gennany Singapore Hong Kong Spain Ireland United Kingdom Italy USA Language Support English (UK) Gennan (Gennany) English (US) Spanish (Spain) French (France) 1 ShoreTel FEATURE SUMMARY Contact h,tc"...Iiw.. OuickDial by name Personal contacts Public contacts Selectable contact folders Matching contact name display Local contact caching Matching contact screen pop Create I edit matching contact Calendar lntc"..,!k.n Calendar call routing Dial by name Dial vanity numbers Intercom Leave a message Page Pickup Pickup night bell Silent monitor Barge in Whisper page Dial by Name Outlook contacts System directory Personal directory Mobi1ity Options SoftPhone Reassign extension to cell phone Reassign extension to home phone Turn PC to a phone Use with PC headsets Number pad for DTMF entry F"Jnd Me Call HancImg Forward to any two numbers Caller ID delivered on Find Me Announce callers on FindMe AnSNer call with key press Send to voicemail with key press Call Presentation Calling name Calling number Current call state Call duration Hold duration Trunk group or DNIS Routing slip Call note Play sound Bring to front Call stack (16 calls) Matching contact name Call Handling Modes FIVe call handling modes Standard In a meeting Out of 1I1e office Extended absence Custom Call forward (always, no anSNer, busy) Customized greetings by mode Call handling note for operatorl administrative assistant Call Management AnSNer Transfer Record Send to voice mail Send to auto-attendant Join to conference Add-on conference Park Hold Hang up Message Notification Notify on any, urgent or never Notify at an extension Notify at an external number Notify to a pager Notify via an email Email message header Email full message (wave file) Configurable re-tJy options Office Anywhen>nf &Iension Assignment Assign number to internal numbers Assign number to external telephones (cell, home, etc.) Assign number to PC based softphone Return number back to desktop telephone 0uIf00k Integration Voice Mail Inbox/.ot.......!k.n Caller ID name and number Callback Compose Date, time and duration Delete Forward Forward via email Move backward Move forward Play Reply Reply all Save Sort with folders Voice Mail Viewer Caller ID name and number Call back Compose Date, time and duration Delete Export Forward Move backwards Move forwards Page 5 Play Reply Reply all Save Matching contact name display History VJeWeI" Caller ID name and number Matching contact name display Date, time and duration Trunk group or DNIS Detailed routing slip Call note One-click call back Create I edit contact from caller ID Rea"" List Dialed calls Missed calls Direc:tofy Viewer Export directory Import directory Open a text page ViffW personal directory ViffW system directory Personal Options Handsfree operation Select personal assistant Disable call-waiting tones Record greeting Record name Select default trunk access Manage passwords Configure sounds Selectable "hot key" Play messages on 1I1e phone Play messages on 1I1e computer Integrated Confeo "Jlcing Up to six parties on conference Add I share documents Move pages forward Move pages backward Integrated Presence Display call status Display call handling mode ViffW call handling note Advanced CaB Manager Only Integrated just-in-time presence Personal call recording \0 ShoreTel FEATURE SUMfVlARY Matching contact name display local contact caching Matching contact saeen pop Create I edit matching contact Calendar ~..1iu.1 Calendar call routing Speed dial Page Pickup Pickup night bell Silent monitor Barge in Whisper page Dial by name Dial vanity numbers Intercom Leave a message MoaIty Options SuftI'f_", Reassign extension to cell phone Reassign extension to home phone Tum PC to a phone Use with PC headsets Number pad for DTMF entry F"md Me Call HandIng Forward to any two numbers Caller 10 delivered on RndMe Announce callers on answer AnSHer call with key press Send to voicemail with key press Dial by Name Outlook contacts System directory Personal directory Call Handling Modes FIVe call handling modes . Standard . In a meeting . Out of the office . Extended absence . Custom Call forward (always, no anSHer, busy) Customized greetings by mode Call handling not for operator I administrative assistant Call "'~.talk.n User name,number Call handling mode Call handling details Call stack Call state Calling name, number Call duration Routing slip . Call Management AnSHer Transfer Send to voice mail Send to auto-attendant Join to conference Add-on conference Park Hold Barge in Record Hang up Message NotificaIion Notify on any, urgent, or never Notify at any extension Notify at an extemal number Notify to a pager Notify via an email Email message header Email full message (wave file) Configurable re-try options Office AnywIJereTM Extension AssigJ.ment Assign number to internal numbers Assign num~r to extemal telephones (cell, home, etc.) Assign number to PC based softphone Retum number back to desktop phone VaiceMail V......... Caller 10, name and number Call-back Compose Date, time and duration Delete Export Forward Move backwards Move forwards Play Reply Reply all Save Matching contact name display 0utI00Ic /ntegraIiofI Vaice Maillnbox 8Jk".alk.n Caller 10 name and number Call back Compose Date, time, and duration Delete Forward Forward via email Move backward Play Reply Reply all Save Sort with folders Contact tut"!l.alio.n OuickDial by name Personal contacts Public contacts Selectable contact folders KIStoIy V_ Caller 10 name and number Page 6 Matching contact name display Date, time and duration Trunk group or DNIS Detailed routing slip Call note One-dick call back Create I edit contact from caller Redial list Dialed calls Missed calls DirectDfy V_ Export directory Import directory Open a text page View personal directory View system directory Personal Options Handsfree operation Select personal assistant Disable call waiting tones Record greeting Record name Select default trunk access Manage passwords Configure sounds Selectable "hot key" Play messages on the phone Play messages on the computer Integrated Con"'" "..dog Up to six parties on conference Add I share documents Move pages forward Move pages backward trrtegrated Presence Display call status Display call handling mode View call handling mode Language Support English (US) French (France) Spanish (Spain) German (Germany Extension Monitor Multiple viewing options Multiple docking options User name, number Call handling mode Call handling details Call state summary Call stack Call state Calling name, number Call duration Routing slip Dial user Dial user mailbox Call pickup Call '\ ShoreTel Audio Confete"c:in9 From 2 to 96 participants One time or recurring calls Reservation-less, anytime calls Instant, ad-hoc conference calls Leader required or leaderless calls User-selected access codes Auto generated access codes Project code call tracking Mute one, multiple, all Parties Drop one, multiple, all Parties Hold one, multiple, all Parties Department code call tracking Dial out to add parties via the web Touch tone dial out to add parties Web based call back line to join Touch tone mute controls Optional entJy and exit tones Announce names on joining Roll call announcements Lecture mode (parties muted) Record conference calls Usten to audio over the phone . Publish recordings via a web link Usten to audio using the PC One-dick email invitations Vi_ all parties on the call Lock calls to unwanted parties Participant audio controls Mute, Drop, and Hold Start call from invitations link Start call from calendar link Play recordings into conferences Conference Management Sdledule new conferences Create instant conferences Audio, Instant Message, Web Vi_, change, and delete calls Vi_ previous conference details Access chat and conference archives Vi_ personal call activity reports At:.cess and distribute recordings Delegate for assistant scheduling One dick to start conferences Secure, password protected access Change personal login credentials Integrated online help system Set your current phone number FEATURE SUMMARY (continued) Dial Plan Support Australia Brazil Canada France Gennany Hong Kong Ireland Italy Malaysia Instant Messaging Buddy list with presence Multiple concurrent 1M sessions Internal instant messaging Block specific user messages Block messages when set to busy Multi-party instant messaging All party text chat in conferences Private, sid&bar text chat Archived instant messages Document Sharing Share PowerPoint presentations Password and SSL protection Leader controlled slide advance Start and stop sharing dynamically Share MS Office documents Rle cabinet to exchange documents Keep for latedor recurring calls Record presentations with the audio Publish recordings via a web link App/kation Shams Share individual windows Share entire desktop Co-browse with shared browser Collaborative Document Editing Pass control to participants All leaders can share their desktop Get control of other leaders PC Presence I Buddy Ust Integrated buddy rlSt with presence Vi_ who is logged into the bridge Vi_ who is on a conference call Seven user controlled presence states Auto set to idle on no PC activity Arrange buddies into groups Send email to any buddy in the list Hide your presence status from others Manage who can view you- status Playa sound on a new message Page 7 Netherlands N_ Zealand Portugal Singapore Spain UK USA Reporting Predefined end user reports Predefined administrator reports Report by project or department code Export full call details (CSV or XML4 T raffle and network statistics Alarm and event logs Security and Compliance Optional HTTPs Transport Individual user authentication One-time conference access codes Password protected documents Local database authentication LDAP database authentication Individual user privileges 1M text logged to SMTP Management A1IIP - no tie line integration Password protected access Reserved Executive Ports Port usage level alerts Email alerts to administrat@r Automatic port configuration One button database backups Bulk provision to add initial users LDAP integration for authentication Configurable voice prompts Resource availability display User dass of service levels 0IIIers Browser, zero install applications Reliable, embedded, appliance Uses the Unux Operating System Local system - not services based \) ShoreTel FEATURE SUr\~MARY Page 8 ~. I r-:;:.. ,.... 'i y" ......FF i y,."y... Graphicalreakirrie displays i Yes Yes Inbound (voice) " Yes Yes Outbound No No Callback, Abandoned, Campaigns (dial from list) .InbOUnd No No Yes I No No Yes Skillo-based routing No No Agent capabilities. management preferences Routing by ONIS Yes Yes Yes Routing by ANI or caller ID No No Yes Routing by type of day Holiday routing Horoday routing Schedule-based routing . Routing by time 01 day (schedule) Two shil1s Two shil1s Schedule-based routing Routing by OJstomer infonnation No No SOL databases via ODBC Overflow on wait No Single--Je,el, ....ltiple groups Multi-level, multiple gropus . Interllow on wait No . . Actual wait Actual wait, estimated wait Call coding (wrap-up code) No . Yes Yes . . Maximum calls in queue I server 254 150 150 Wall Boam support Queue Monitor only DeskIDp Wall Board: external via COM port DeskIDp Wall Beam; external via COM port Opelating system (senref) Integrated with 51loreWare server Dedkated Wmdows 2000 Selver Dedicated Windows 2000 Server AoIent'iii'YY"iYi,,' .... ...,.iYY """ Y . i "y," "",..,Yiy,i' 'ii'i' < i.,Y""., ".Yi. Screen pop Outlook; dient-based (rAPQ Outlook; cr_-based (rAPl) Outlook; dient-based (DOE, ActieX. trigg...) Graphical user interface Yes Yes Yes Calls in queue display Yes No Yes G<aphical threshold alerts Yes (also audio) Yes (Wall BoaId) Yes (Wall Board) Call picking from queue Yes No Yes [lfpennitted) Individual group login No Yes [If pennitted) Yes [If pennitted) On--saeen wall bao<d No Yes Yes Call information display Yes Yes Yes Previous call log display Yes Yes Yes Y'i, Y Y'Yi, ......" i TY "i ---:== Y, Hi"~ Supeoviso<s 128 32 32 Real-time statistics Yes (Queue monitor) Yes Yes Historical reports No (on SI10reWare server) Yes [If pennitted) Yes [If pennitted) ,i.i ,., ,. iFi, i,y.""..iy. i' , i i.,y,'Fii' Y.".",YY,Y-----,' i iFi iF' i ",y., .iFY,'i Default__ Real time One second One Second Color-coded notifications Yes Two levels Two levels Available reportformats Tabular Tabular. gaphkal Tabular, graphical Agent status and statistics No Yes Yes Group~and~cs Login and call status Yes Yes Group calls in queue status Yes Yes Yes Agent requires help notifications No Yes Yes Agent log in 1 log out status 1 control Yes Yes Yes Call monitor' and barge in Yes Yes Yes . T'T,,,,,,,,,,,,,.,,.,,,,.'i"""i""'----.--;--o ....... . ""i""""""Y """T'TTT"" """"" T "",,,,,,,,,TT T""T""""""""":""T,,,,T """""'"'''''' Reporting formats Tabular Tabular. g-aphicaI Tabular. graphiccal . Automatic reports scheduler No Print or save to file Print or save to file Export data in multiple formats Yes Yes Yes Add remove report columns No Yes Yes Custom calculation fields No Optional Yes Agent perfonnance reports Yes Yes Yes Group perlOOnance reports Yes Yes Yes AGO call distribution reports Yes Yes Yes Abandoned call reports No Yes Yes Wrap-up code reports No Yes Yes iTi i.""'.""""T,.,, "" i T,"""T .....,''''','TiT." i". ,ii",,, . IT...... i,".IiI"TI'Y'I....i.,,,_______________ Yi. ".I", ......", Free text messages No Yes Yes Real-time statistics messages Queue Monitor Yes Yes System alanns Queue Monitor Yes Yes ShoreTel 960 S1ewart Drive Sunnyvale, CA 94085 USA Phone +1,408.331.3300 + 1.877.80SHORE Fax +1,408,331.3333 www.shoretel.com '3 Copyright C 2006 Shore Tel. All rights reserved. Shore Tel, the Shore Tel Logo. ShoreCare, ShoreGear. ShoreWae, ShorePhone, ControlPoint and Office Anywhere are trademarks or ~istered trademarks of Shore T e1. Inc. All other marks are the property of their respective owners. 5peci6cations are subject to change without notice. Part# FS-02/S .06 (f) 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923. WWW,CI.ANDOVER,MN.US TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: .2008 Budget Progress Report DATE July 24,2007 INTRODUCTION City Departments are well underway to completing their proposed 2008 Annual Operating Budgets; the deadline for each department's submission to Finance/Administration was July 6, 2007. Since that deadline AdministrationlFinance has met with each department individually to review and fine tune the individual budgets to meet Council guidelines identified below. Underlined items will be reviewed at the meeting. DISCUSSION Budget Guidelines: The following are City Council's 2008 Budget Development guidelines established by the City Council on April 3, 2007 and used by City Staff while preparing their proposed operating budgets: 1) A commitment to maintain or reduce the City Tax Capacity Rate, utilizing recent market value growth to meet the needs of the organization and positioning the City for long-term competitiveness. staffing and capital requirements through sustainable revenue sources and operational efficiencies. 2) Development of a financial plan to appropriately structure the expenditure of bond proceeds generated from the successful Open Space Referendum. 3) A fiscal goal that works toward establishing the General Fund balance for working capital at no less than 35% of planned 2008 General Fund expenditures. 4) A commitment to limit the 2008 debt levy to no more than 25% of the gross tax levy and a commitment to a detailed city debt analysis to take advantage of alternative financing consistent with the City's adopted Debt Policy. 1 5) A comprehensive review of the condition of capital equipment to ensure that the most cost- effective replacement schedule is followed. Equipment will be replaced on the basis of a cost benefit analysis rather than a year based replacement schedule. 6) A team approach that encourages strategic planning to meet immediate and long-term operational, staffing, infrastructure and facility needs. 7) A management philosophy that actively supports the implementation of Council policies and goals, and recognizes the need to be responsive to changing community conditions, concerns and demands in a cost effective manner. Overall- Budget Development Calendar: Currentlv Administration and Finance are reviewing budgets with Department Heads to be consistent with Council guidelines. The availability of additional tax levy in 2008 is significantly limited by the low taxable market value percentage increase over 2007. Going into the meetings with Department Heads the requested budget was $718,403 over available funding sources. Additional handouts will be provided at the meeting to indicate the current status of the budget development. Fund Balance Update: The Comprehensive Annual Financial Report for the year ended December 31, 2006 reported that the City did achieve it's 2007 budget goal of establishing the General Fund fund balance for working capital at no less than 35% of planned 2007 General Fund expenditures ($8,534,974). $2,998,317 was available, which equates to a 35.13% fund balance for working capital for the 2007 Budget. The work being done by Staff relative to the 2007 revenue and expenditure estimates will assist in achieving the Council 2008 budget guideline that works toward establishing the General Fund fund balance for working capital at no less than 35% of planned 2008 General Fund expenditures. The estimates are also necessary to preserve the emergency reserve fund balances for core services (snow emergency ($50K), public safety ($50K) facility management ($50K), and information technology ($50K)) and economic development migration ($50K). These reserves were created through the 2006 & 2007 Budget processes and are intended to prevent budget spikes in future years. New Staffing Requests: The deadline for new staffing requests was July 6th, Staffing requests were made by the Fire Department. Public Works and the Community Center. The staffing requests that are proposed to be funded through the General Fund will likely not be able to be approved do to the limited tax levy increase. 2 The staffing request for the Community Center will flow through the Community Center Advisory Commission and be dependent on available revenue sources. Personnel Related Implications: To date the following are projected issues facing personnel related expenses: 1. A total salary compensation adiustment package will ultimately be proposed to proyide wages that are competitive with other government entities. Human Resources has indicated that 2008 wage proposals in other communities for a cost-of-living increase are ranging from 2.5% to 3.5%. The Consumer Price Index for Urban Wage Earners as measured from March of 2006 to March of2007 is 2.8%. At this point no percentage has been established by the Council and direction is sought on this issue. I am currently using 3% as a placeholder to calculate the budget. 2. It is anticipated that as in past budgets, approximately $10,000 to $12,500 (previous years were $15K-$20K will be requested to bring into market positions that are not competitive with comparable communities. Also the City will need to prepare for Pay Equity' Compliance. The City's Human Resources Manager in consultation with the City Council and City Administrator will again conduct the market analysis if this request survives the budget review, the 2007 analysis will be completed this month. 3. The proposed budget is currently carrying a 15% health insurance increase. This budget will be adjusted once a mid year review of the health plan is conducted. You may recall that the City switched to a high deductible plan with a health spending account (HSA) in 2006. I am remaining optimistic that the switch will lower future health insurance increases, the 2007 increase was 5%. Staff has a mid year review of our health insurance plan scheduled for July 26 with our broker to fine tune this number. 4. Various departments will have changes in the personal services line items do to the reallocation or retirements of staffing in the respective departments. The most significant allocation changes will be in Public Works, Engineering, Planning, Administration, Clerks and Finance departments. The Public Works allocations are to be reflective of actual and staffing moves and the Public Works Superintendent's retirement; Engineering Department reflecting changing staffing focuses and a Public Works/Engineering department consolidation; and the Administration, Planning & Finance allocation reflecting a reduction in the amount of time charged to the EDA budget; and the Clerks reflecting the retirement of the current City Clerk. 3 Contractual Departments: 1. The City Attorney has submitted a 5% increase over the current contract. The City Attorney has indicated that criminal prosecutions have increased significantly over the past few years. Administration is supportiye of the request. 2. The 2007 City of Andoyer Law Enforcement expenditure budget is $2,083,860.00 which is offset by a Police State Aid revenue budget of $91,592 and School Liaison revenue budget of $76,862.00 reflecting a net tax levy impact of $1,915,406. The current Sheriffs contract proyides for 72 hours per day of patrol service (increasing to 80 hours July 1, 2007), 12 hours per day of service provided by a Community Service Officer, a School Liaison Officer in the middle school and high school, and 50% of the costs associated with the Crime Watch Program's coordinator position. The 2008 Anoka County Sheriffs contract will be presented separately at the July 26th workshop. Direction is sought from the Council on whether or not additional services should be added to the contract. Staff does caution that if additional services are requested, it is likely that other City department service levels will need to be reduced or eliminated. . Council Memberships and Donations/Contributions: The following memberships are included as part of the 2008 proposed General Fund budget: League of Minnesota Cities North Metro Mayor Association of Metropolitan Cities (AMM) Community Schools Mediation Services YMCA - Water Safety Program $17,961 $15,900 $ 7,500 $45,200 $ 3,040 $ 4,000 The following donations/contributions are included as part of the 2008 proposed budget: TH 10/169 Coridor Coalition Anoka County Partners Youth First Alexandra House Senior High Parties $ 6,800 $16,000 $ 7,500 $14,804 $ 1,500 Road and Bridge Fund Economic Development Fund Charitable Gambling Fund Charitable Gambling Fund Charitable Gambling Fund It is anticipated that Youth First will be requesting additional funds (beyond the current $7,500) from the City of Andoyer through the Charitable Gambling Fund. Council feedback on the proposed donation/contributions is sought. 4 Capital Projects Levy: Capital Proiects Levy - The 2007 Budget specifically designates $1,367,754 of the general tax levy to capital projects and equipment needs relating to Capital Outlay ($210,000), Road and Bridge ($1,052,953), Pedestrian Trail Maintenance ($48,801) and Park Projects ($56,000). Specific designation of the tax levy to anticipated City needs and priorities for transportation and trail maintenance, park projects and equipment outlays allows the City to strategically allocate its resources and raise the public's awareness of City spending priorities. The Road and Bridge levy is calculated according to Council Policy based on annual growth increases, with Capital Outlay, Pedestrian Trail Maintenance and Park Levies increased according to the City Council budget guidelines. The 2008 Budget number for the Capital Projects Levy is currently being analyzed and will be presented at a future workshop. . Road and Bridge - This levy will be proposed for transportation programming related to maintaining City streets, roadways and pedestrian trails. This could be the fifth year that a portion of the Road & Bridge Fund is dedicated to pedestrian trail maintenance. This levy is also used for the City's seal coating and crack sealing programs and for street overlays. . Park Improvements - This levy will be proposed as an annual appropriation to be used to underwrite a wide range of park improvement projects as recommended by the Park and Recreation Commission and approved by the City Council. This funding is intended to be a long-term supplemental source of capital funding for park projects that would be separately identified in the City's Five-Year Capital Improvement Plan. . Capital EQuipmentlProiects - Under the Capital Projects Levy a levy will be proposed to be designated to capital improvement/equipment project expenditures. Through this designation, the City, over time, will be able to build a fund reserve to avoid cash flow "spikes" and address a wide range of capital improvement needs such as facility maintenance projects under a more controlled spending environment. Debt Service Levy: Annually the Finance Department conducts a detailed debt service analysis to monitor outstanding debt and to look for early debt retirement or refinancing opportunities that will yield interest expense saving to the City, that process is currently underway. It is highly unlikely that savings will be found since such a significant effort was done during late 2006 and early 2007, which was followed by significant refinancing issuances. The Debt Service levy will need to provide for (at a minimum) the following debt service payments: 5 . 2004A G.O. Capital Imp. Bonds . 2004 EDA Public Facility Bonds . 2005 G.O. Capital Imp. Bonds . 2006B G.O. Equipment Certificate . 2007 G.O. Equipment Certificate . 2008 G.O. Open Space Bonds Total $ 374,934 $ 934,203 $ 122,622 $ 171,832 $ 235,806 $ 198.302 $2,037,699 There could also be UP to an additional $200.000 added to the levv to accommodate a 2008 G.O. Equipment Certificate to purchase equipment that will be outlined in the 2008-2012 CIP. The levy for the 2004 EOA Public Facility Bonds represents the levy designated in the pro-forma financial statements for the community center. ACTION REOUESTED The Council is requested to review the 2008 Budget progress and provide direction to staff on various budgetary items. 6 Cf) 1685 CROSSTOWN BOULEVARD N,W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER,MN.US TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: 2007-2008 Council Goals Discussion DATE: July 24, 2007 INTRODUCTION Attached for your review is Ii. table displaying previously adopted goals discussed in the spring of 2006. Goals that were completed or where no further action was needed were removed. The table displays the goals, priority and present goal status. The following scale outlines the goal priority scores: o = No action necessary. I = Very low priority, work on only when other goals are completed. 2 = Low priority, work on to complete as time permits. 3 = Medium priority, pursue goal on a continual basis to complete by next spring. 4 = Aggressively pursue, work on to assure completion as soon as possible. Also attached is a condensed Iistinl! (duplicate submissions removed) of l!oals submitted bv Councilmembers that are to be discussed at the meetinl!. DISCUSSION The Council is requested to discuss and provide specific goals for the coming year. The goals will be use by respective departments to formulate work plans and budgets. ACTION REQUESTED The Council is requested to discuss and provide specific goals for the coming year. The recommended 2007-2008 goals will then be forwarded to the next Council meeting (August 8th) for formal approval. ---- Attachments Remaining Goals Goal # 2006-07 COUNCIL GOALS GROUP . PRIORITY 1 Set up master plan for parks and public requirements in Rural Reserve area. 3.8 Staff made the potential developer of this area aware of these requirements. Various concept plans have been discussed at workshops. Staff will continue to review future proposals for this area and ensure that the Council's requirements are met. 2 Schedule Council meetings at least once per year with the 3.2 Planning Commission, Park Board Commission and Community Center Advisory Commission. Joint meetings were held with all commissions. Others will be scheduled. 3 Finalize working agreements with County Highway on rules 3.8 for Andover road accesses. Staff continues to work with the ACHD on getting timely responses to requests for comments. Correspondence was made to ACHD requesting improvement with the process. 4 Pursue Wireless Internet. 2.6 Information Services & Administration have made presentations at workshops and continue to follow the technology. Staff will bring back to Council if a cost effective solution presents itself. 5 Transportation fun dine: fees/policies. 3.5 This is ongoing. A significant amount of discussion on this topic has taken place at Council workshops. This topic is now a focus point for the THl 0/169 Corridor Coalition 6 Restrict garbage pickup to one day a week. .8 Presentation made to the Council on a survey of other cities, no further action has been taken 7 Assess Citv Hall and Public Work needs. 2.6 Improvements are currently underway to upgrade various rooms . and provide added security for City Hall. The Council has reviewed a concept plan for the Public Works campus. 1 7/20/2007 Goal # 2006-07 COUNCIL GOALS GROUP PRIORITY 8 Research whether or not the City should start undertaking 2 Recreational programming. This is reviewed annually and will again be reviewed as part of the 2008 budget process. 9 Pursue Funding for a railroad overpass at Bunker Lake 2.8 Boulevard. Discussed at Council Workshops. A question relative to this topic was part of the 2006 Community Survey, limited resident support was there. Further direction from the Council is sought on this issue. 2 7/20/2007 2007 - 2008 Goals submitted bv Council members: New goals: 1. Keep annual tax increases to no more than cost of living. 2. Complete Comprehensive Plan with no increase in overall density and submit to the Met Council. 3. Review and discuss all of the impacts to the city of decline in housing starts and slowing down of market value growth, to determine whether existing policies, priorities or practices need to be changed. 4. Initiate a program to maintain current housing stock and programs to revitalize some of the older neighborhoods and businesses. 5. Consider an ordinance regulating all rental property including Town homes and single family residential. 6. Review the changes that will be required with the aging population of the City. 7. Analyze and plan for adequate future commercial and industrial land. 8. Initiate contacts with local business owners to determine how city may help them be successful or expand within our city. 9. Continue working creatively with owners in Hughes Industrial Park to encourage success and potential expansion oflocal businesses. 10. Consider issues involved with the Kottke Bus area redevelopment. 11. Complete Andover Station land sales. 12. Continue working with Rosella on developing property at Bunker and ih. 13. Create an attractive and sustainable landscape along Hanson Blvd. north of Bunker Lake Blvd. as our gateway to City Hall and the Community Center, working with appropriate agencies, staff, homeowners and volunteers. 14. Finalize plans for future capital outlays necessary for the area west of the water treatment plant. IS. Discuss the possibility of a Parks Referendum in November 2008. 16. Review and assess recent goals of parks commission in light of available funds. 17. Maintain a consistent trail construction schedule relying on general levy funds and trail fees in order to complete major links for safety, especially along Crosstown and Bunker 18. Continue planning for railroad quite zones 19. Evaluate whether current assessment policy, allowing small property owners to choose to delay but reserve access to public utilities in areas undergoing such installation, is compatible with prudent use of public infrastructure funds. 20. Consider joining the U.S. Mayors Climate Protection Agreement to reduce global warming pollution. 21. Consider hybrids and other cleaner vehicles for the City fleet. 22. Consider opportunities to modernize city buildings with money-saving energy- efficiency technology. 23. Consider investing in clean and safe renewable energy alternatives for the City. 24. Perform a costlbenefit analysis on continuing with the Sheriff or developing our own police force. 25. Improve retention of Andover assigned law enforcement officers to create a long term "Andover term" by contracting with Anoka Sheriffs office for longer time periods than the current annual contract. 26. Evaluate cost effectiveness and role of community service officers versus funding more professional law enforcement staff. 27. Analyze the need for an investigator from the Sheriffs Department. 28. Set up an Andover code training session for community service officers; including animal control, noise, ATV, snowmobile, parks ordinances and concerns. 29. Provide training session for new commissioners and offering existing commissioners the opportunity to also attend. 30. Analyze personnel and space needs for the future growth of the City so there won't be any surprises in building requirements. 31. Review whether or not the City should consider a Parks Director position. 32. Show appreciation for city commissioners by hosting a council/commission social event such as a summer picnic for them and their spouses. 33. Review and update council/commission memo format, seeking input from users and staff. 34. Invite area legislators, a school board representative from each school district, and a county representative to update our community at a regular council meeting on items they think impact our community. 35. Join Ham Lake Area Chamber of Commerce to increase staff contacts with area businesses to solicit prospects for Andover Station North. 36. Consider web-casting council and planning commission meetings. 37. Evaluate the entire sound and visual system in council chambers and request our city's allocation of funds from QCTV for equipment. 38. Schedule workshop time with department heads to learn more about their operations and the challenges they face in serving the public. .;;,. ADoka County Sheriffs Office Investigator Staffing Survey In 1995, a Patrol Deputy position was reorganized as a Patrol Investigator position. The purpose of this position was to follow up and investigate misdemeanor crimes, derived from calls originating from the Patrol Division. Due to increases in case loads, a second position was added in 1998. To date, these two positions are County funded and responsible for handling cases in the Cities of Andover, Ham Lake, Oak Grove, East Bethel, Columbus, and Linwood and Burns Townships. Investigative duties have since expanded to include the retention and investigation of gross misdemeanor and felony level property crimes. This is a result of the Criminal Investigation Division's increased case load and the demands placed upon their personnel. The complexity of some of these cases has become burdensome in terms of additional time commitments, thus resulting is less dedicated time to work on remaining case loads. As population and demographic density rises, so too will calls for service and subsequent case assignments for investigative services. When comparing statistics from the Sheriff's Office to other local departments, it is important to understand how cases are handled. Cases with any leads are immediately assigned to investigations. Cases where there are no leads or suspects are considered TJ'd. TJ'd status means those cases are reviewed and possibly assigned to make sure there are no additional leads to be developed. It is also important to note that a TJ'd case becomes active once leads or suspects. are developed. The case is then immediately assigned back to the investigator. The Sheriff's Office is the only department that assigns this special TJ status to cases. Other departments track these types of cases assigned to investigations as reflected in there total case assignment numbers. 1 ... Research of historical data for the City of Andover reflects the following: . In 2004, there were 172 cases assigned for investigation; however, there were an additional 878 cases classified to TJ status. Total combined cases were 1,050. . In 2005, there was an increase in assigned cases to 201; however, there was another 503 cases that were classified to TJ status. Total combined cases were 704. . In 2006, the case load slightly declined from the previous year to 182 cases. There was also an increase in TJ cases to 679. Total combined cases were 861. . In 2007 from January to June, there have been 80 cases assigned, 349 cases TJ'd, for a total of578. The case load from January to June represents the halfway point. The above data clearly shows that the case load is steadily increasing. The number of cases assigned has declined slightly, however the number ofTJ'd cases is increasing. This indicates that investigative resources are strained, given the amount of cases that we are able to investigate on a proactive basis. Cases that . have leads or suspects are always assigned to an investigator. When interpreting the raw data, it is important to understand the complexity of the majority of cases today. We are experiencing a large increase of cases related to identity theft, check forgery, and financial transaction card fraud. These types of crimes are typically related to larger crimes of burglary and theft and are extremely 2 , complex. They demand increased investigator time in developing leads and evidence. We often see these types of crimes related to other open or TJ'd cases. Investigators are responsible for developing cases for successful prosecution and dedicated time to put together Ii case file for prosecution. In many instances, case development may take several months. Investigators also work with other outside agencies on many types of financial crimes and are often tasked with prosecuting outside agency cases that directly relate to larger crimes occurring in a specific city (Andover). Taking into account that the Sheriff's Office is responsible for investigations in seven communities and the fact that each community is experiencing similar increased demand on the investigative division, it is evident the number of cases that need to be investigated will continue to increase and available time to be proactive and develop leads on TJ'd cases will continue to fall. It is the Sheriff's Office goal to provide the best possible services for the cities it serves. Lack of resources in the investigative division places a strain on the ability to provide the quality of services the cities deserve. A comparison study was conducted inside of Anoka County, as well as surrounding communities to depict the number of investigators assigned and their case load as compared to their current population. The City of Fridley is similar in tennsof population in comparison to the City of Andover. Fridley's population is 27,460. Fridley's case load for 2004 was 668, in 2005 was 719, in 2006 was 996 and the projected total of cases in 2007 is estimated to be 1,068. Fridley has 3 investigators assigned to general investigations, as well as 2 school resource officers who assist the investigators with juvenile cases. 3 \. The City of Champlin is the second closest city in terms of population in comparison to the City of Andover. Champlin's population is 24,800. Their case load for 2005 was 466; in 2006 was 598 and the total cases for 2007 from January to June are 248. Champlin has 2 investigators assigned to general investigations as ' well as llivable housing officer who also works Y2 the case load of general investigations. Champlin also has 1 school resource officer who handles some juvenile cases during the school year and also works full time general investigations during the summer. Upon ex8mination of comparative cities with similar population and investigator case loads, it is clearly evident the City of Andover has reached a juncture to dedicate investigator resources. On average when compared to the City of Fridley and Champlin, the number of full time general investigators dedicated by population is 1 investigator per 10,452 people. With the City of Andover having a population of 30,000, the city should have 2.87 dedicated full time investigators assigned to their city. Based upon our statistical research, it is our recommendation to the City of Andover that purchasing dedicated investigative services should be considered in 2008. Respectfully submitted, Sheriff Bruce Andersohn 4 , Andover Population Investigators 30,000 o specifically for the city Year 2003 2004 2005 2006 2007 Jan - June Cases Assigned T J Cases Total 'does not include Fe!. property crimes sent to CID Stats not available for 03' and earlier 172 878 1050 201 503 704 182 679 861 80 349 578 Fridley - Comparison City Population 27,460 Investigators 1 Lt. 3 Generallnv. 1 Automated Pawn System Inv. 2 SRO's - handle juvenile cases along with school duties Year 2004 2005 2006 2007 Total Cases 668 719 995 1068 projected total Champlin - Comparison City Population 24,800 Investigators 2 Generallnv. 1 Inv.(Livable Housing Officer - Works 1/2 case load of regular investigations. 1 SRO - works some juvenile cases during school year, works generallnv. in the summer Year 2005 2006 2007 Total Cases 466 598 248 Jan.-June Blaine - Comparison City Population 64,000 Investigators 5 Generallnv. 1 SRO - works school related cases during school yr., works generallnv. during the summer Usually have 2 SRO's Year 2004 2005 2006 2007 Total Cases 935 1340 1236 452 Jan. - July 13 Anoka - Comparison City Population 18,000 Investigators 2 Generallnv. Year Total Cases 2004 2005 2006 345 374 399 Elk River - Do nottrack Inv. Stats Population 22,550 Investigators 1 Sgt. 3 Generallnv. 2 SRO's - handle juvenile cases along with school duties Uno lakes - Do not track Inv. Stats Population 18,520 Investigators 1 Sgt. 1 Generallnv. 1 SRO - handles juvenile cases along with school duties Forest lake - Do not track Inv. Stats Population 15,800 Investigators 1 Generallnv. 2 SRO's - handle juvenile cases along with school duties Ramsey Population Investigators 23,000 1 Sgt. Inv./Admin - does not actively work cases 2 Generallnv. . Total of 300 assigned cases for2005-2006. They did not have them broken up by the year. Pattol Division works most of their own cases. Inv. Cases are usually more in depth and may tequire out of city followup. Columbia Heights - Do not track Inv. stats Population '18,520 Investigators 3 Generallnv. 1 SRO - handles juvenile cases along with school duties Chapter 5 FIRE SERVICE FEATURES .~ SECTION 501 GENERAL 501.1 Scope. Fire service features for buildings, structures and premises shall comply with this chapter. 501.2 Permits. A permit shall be required as set forth in Sec- tions 105.6 and 105.7. 501.3 Construction documents. Construction documents for proposed fire apparatus access, location of fire lanes and con- struction documents and hydraulic calculations for fire hydrant systems shall be submitted to the fire department forreview and approval prior to construction. 501.4 Timing of installation. When fire apparatus access roads or a water supply for fire protection is required to be in- stalled, such protection shall be installed and made serviceable prior to and during the time of construction except when ap- proved alternative methods of protection are provided. Tempo- rary street signs shall be installed at each street intersection when construction of new roadways allows passage by vehicles in accordance with Section 505.2. SECTION 502 DEFINITIONS 502.1 Definitions. The following words and terms shall, for the purposes of this chapter and as used elsewhere ,in this code, have the meanings shown herein. FIRE APPARATUS ACCESS ROAD. A road that provides fire apparatus access from a fire station to a facility, building or portion thereof. This is a general term inclusive of all other terms such as fire lane, public street, private street, parking lot lane and access roadway. FIRE COMMAND CENTER. The principal attended or un- attended location where the status of the detection, alann com- munications, and control systems is displayed, and from which the system(s) can be manually controlled. FIRE DEPARTMENT MASTER KEY. A limited issue key of special or controlled design to be carried by fire department officials in command which will open key boxes on specified properties. FIRE LANE. A road or other passageway developed to allow the passage of fire apparatus. A fire.lane is not necessarily in- tended for vehicular traffic other than fire apparatus. KEY BOX. A secure, tamperproof device with a lock operable only by a fire department master key; and containing building entry keys and other keys that may be required for access in an emergency. 2000 INTERNATIONAL FIRE CODE@ SECTION 503 FIRE APPARATUS ACCESS ROADS 503.1 Where required. Fire apparatus access roads shall be provided and maintained in accordance with Sections 503.1.1 through 503.1.3. 503.1.1 Buildings and facilities. Approved fire apparatus access roads shall be provided for every facility, building or portion of a building hereafter constructed or moved into or within the jurisdiction. The fire apparatus access road shall comply with the requirements of this section and shall ex- tend to within 150 feet (45 720 rom) of all portions of the fa- cility or any portion of the exterior wall of the first story of the building as measured by an approved route around the exterior of the building or facility. Exception: The code official is authorized to increase the dimension of 150 feet (45720 mm) where: 1. The building is equipped throughout with an ap- proved automatic sprinkler system installed in ac- cordance with Section 903.3.1.1, 903.3.1.2 or 903.3.1.3. 2. Fire apparatus access roads cannot be installed due to location on property, topography, waterways, non-negotiable grades or other similar conditions, and an approved alternative means of fire protec- tion is provided. 3. There are not more than two Group R- 3 or Group U occupancies. 503.1.2 Additional access. The code official is authorized to require more than one fire apparatus access road based on the potential for impairment of a single road by vehicle con- gestion, condition of terrain, climatic conditions or other factors that could limit access. 503.1.3 High-piled storage. Fire department vehicle access to buildings used for high-piled combustible storage shall comply with the applicable provisions of Chapter 23. 503.2 Specifications. Fire apparatus access roads shall be in- stalled and arranged in accordance with Sections. 503.2.1 through 503.2.7. 503.2.1 Dimensions. Fire apparatus access roads shall have an unobstructed width of not less than 20 feet (6096 mm), except for approved security gates in accordance with Sec- tion 503.6, and an unobstructed vertical clearance of not less than 13 feet 6 inches (4115 mm). 503.2.2 Authority. The code official shall have the author- ity to require an increase in the minimum access widths where they are inadequate for fire or rescue operations. 503.2.3 Surface. Fire apparatus access roads shall be de- signed and maintained to support the imposed loads of fire apparatus and shall be surfaced so as to provide all-weather driving capabilities. 39 503.2.4 - 506.2 503.2.4 Thrning radius. The required turning radius of a ,fire apparatus access road shall be determined by the code official. 503.2.5 Dead ends. Dead-end fire apparatus access roads in excess of 150 feet (45 nO" mm) in length shall be provided with an approved area for turning around fire apparatus. 503.2.6 Bridges and elevated surfaces. Where a bridge or an elevated surface is part of a fire apparatus access road, the bridge shall be constructed and maintained in accordance with AASHTO Standard Specification for Highway Bridges. Bridges and elevated surfaces shall be designed for a live load sufficient to carry the imposed loads of fire appa- ratus. Vehicle load limits shall be posted at both entrances to bridges when required by the code official. Where elevated surfaces designed for emergency vehicle use are adjacent to surfaces which are not designed for such use, approved bar- riers, approved signs or both shall be installed and main- tained when required by the code official. 503.2.7 Grade. The grade of the fire apparatus access road shall be within the limits established by the code official based on the fire department's apparatus. 503.3 Marking. Where required by the code official. approved signs 'or other approved notices shall be provided for fire appa- ratus access roads to identify such roads or prohibit the obstruc- tion thereof. Signs or notices shall be maintained in a clean and legible condition at all times and be replaced or repaired when necessary to provide adequate visibility. 503.4 Obstruction of fire apparatus access roads. Fire appa- ratus access roads shall not be obstructed in any manner, in- cluding the parking of vehicles. The minimum widths and clearances established in Section 503.2.1 shall be maintained at all times. 503.5 Required gates or barricades. The code official is au- thorized to require the installation and maintenance of gates or other approved barricades across fire apparatus access roads. trails or other accessways. not including public streets. alleys or highways. 503.5.1 Secured gates and barricades. When required, gates and barricades shall be secured in an approved mart- ner. Roads, trails and other access ways that have been closed and obstructed in the manner prescribed by Section 50'3.5 shall not be trespassed on or used unless authorized by the owner and the code official. Exception: The restriction on use shall not applY to pub- lic officers acting within the scope of duty. 503.6 Security gates. Where security gates are installed, they shall be maintained and an approved means of emergency oper- ation shall be provided and maintained. SECTION 504 ACCESS TO BUILDING OPENINGS AND ROOFS 504,1 Required access. Exterior doors and openings required by this code or the International Building Code shall be main- tained readily accessible for emergency access by the fire de- partment. An approved access walkway leading from fire 40 FIRE SERVICE FEATURES apparatus access roads to exterior openings shall be provided when required by the code official. 504.2 Maintenance of exterior doors and openings. Exterior doors and their function shall not be eliminated without prior approval. Exterior doors that have been rendered nonfunctional and that retain a functional door exterior appearance shall have a sign affixed to the exterior side of the door with the words c - , THIS DOOR BLOCKED. The sign shall consist ofletters hav- ing a principal stroke of not less than 0.75 inch (19.1 mm) wide and at least 6 inches (152 mm) high on a contrasting back- ground. Required fire department access doors shall not be ob- structed or eliminated. Exit and exit access doors shall comply with Chapter 10. Access doors for high-piled .combustible stor- age shall comply with Section 2306.6.1. 504.3 Stairway access to roof. New buildings four or more stories in height. except those with a roof slope greater than four units vertical in 12 units horizontal (33.3-percent slope), shall be provided with a stairway to the roof. Such stairway shall be marked at street and floor levels with a sign indicating that the stairway continues to the roof. Where roofs are used for roof gardens or for other purposes, stairways shall be provided as required for such occupancy classification. SECTION 505 PREMISES IDENTIFICATION 505.1 Address numbers. New and existing buildings shall have approved address numbers, building numbers, or ap- proved building identification placed in a position to be plainly legible and visible from the street or road fronting the property. These numbers shall contrast with their background. Address numbers shall be Arabic numerals or alphabet letters. Numbers shall be a minimum of 4 inches (102 mm) high with a minimum stroke width of 0'.5 inch (12.7 mm). 505.2 Street or road signs, Streets and roads shall be identified with approved signs. Temporary signs shall be installed at each street intersection when construction of new roadways allows passage byvehicles. Signs shall be of an approved size, weather resistant and be maintained until replaced.by permanent signs. SECTION 506 KEY BOXES 506.1 When required. Where access to or within a structure or an area is restricted because of secured openings or where im- mediate access is necessary for life-saving or fire-fighting pur- poses, the code official is authorized to require a key box to be installed in an accessible location. The key box shall be of an approved type and shall contain keys to gain access as required by the code official. 506.1.1 Locks. An approved lock shall be installed on gates or similar barriers when required by the code official. 506.2 Key box maintenance. The operator of the building shall immediately notify the code official and provide the new key when a lock is changed or rekeyed. The key to such lock shall be secured in the key box. 2000 INTERNATIONAL FIRE CODE@ 2007 Staffing Comparison General Government (Admin, Finance, IT, Community Development) Population* Name # of Staff Staff/Pop Comments (thousands) 47,448 47,45 Edina 30 0,63 'j{. 30 080 30,08 Andover 19.5 0,65 24,071 24.07 Champlin 16 0.66 58,420 58.42 Maple Grove 42 0,72 24,927 24.93 White Bear Lake 18 0,72 33,179 33,18 Cottage Grove 24.2 0.73 48,988 48,99 Apple Valley 37 0.76 25,964 25,96 Shoreview 20 0.77 28,137 28,14 Brooklyn Center 23 0.82 66,709 66,71 Eagan 55 0,82 21,395 21,40 Prior Lake 18 0.84 54,091 54,09 Woodbury 47.82 0,88 22,595 22,60 Crystal 20 0,89 51,722 51.72 Lakeville 45,9 0,89 54,020 54.02 Blaine 49 0.91 29,335 29.34 Shakopee 27,5 0.94 60,955 60,96 Eden Prairie 57.5 0.94 33,882 33,88 Roseville 32,25 0,95 20,747 20,75 New Hope 20.5 0.99 22,113 22.11 New Brighton 22.15 1.00 24,662 24.66 Savage 24,8 1.01 61,262 61.26 Burnsville 62.85 1.03 51,657 51.66 Minnetonka 53.13 1.03 20,510 20.51 Golden Valley 21.1 1,03 21.489 21.49 Hastings 22,52 1,05 19,698 19,70 Lino Lakes 21 1,07 36,279 36,28 Maplewood 40.5 1,12 71,048 71,05 Brooklyn Park 80 1.13 20,078 20,08 South St Paul 24 1.20 19.418 19.42 Rosemount 23.5 1,21 44,380 44,38 St Louis Park 55,75 1,26 22,518 22.52 Chanhassen 30,66 1.36 21,749 21,75 Ramsey 30.27 1,39 average 0,95 '2005 Met Council Population Estimates 1,60 III 1.40 .... c III :2 1.20 III e 1.00 0 0 0.80 0 .... "- 0.60 c. 0.40 III w I- 0.20 u.. 0.00 IAverage 0,95 Staffing- General Govt . - - - ~ ~ .. ~ .l! ~ ~ ~ li 0 .l! '" I ~ m ~ ~ .. 5 .. .l! ~ 0 .!! 1 ~ "5 0 ~ 0 ~ 0 1'i ~ -" ~ , ~ :s '" -" ~ , m ~ 0 ~ ~ .~ 0 ~ .. ~ 'ffi " Ii! -,; :c ~ 0 ~ 0 ~ ~ ~ 0 ~ E ~ E to to .. ~ ~ ~ 1li Jl m :I: '" B = 0 ~ ~ ! '-' w 5 ~ '-' .. ili .. .. 0 ~ .. Iii E ,~ ~ &. .. ~ ~ 0 ~ 0 Ii . en ~ 0 ~ 0 c. ~ , ~ '-' 1'i ~ 1'i ~ .. '0 ~ .. .. .. :I: 0 ~ '" oS " 0 ~ en .. en Z ~ ~ :::; 0 ~ , ~ :{ '" ~ :! :; , ~ :; s 0 ~ w z 8 e 0 Iii '-' ~ '-' III en III Attachment 1 Attachment 2 2007 Staffing Comparison Public Works (Arena, Engineering, Stteets, Utilities, Parks, Recreation) Populatlon* Name # of Staff Staff/Pop Comments (thousands) 66,709 66,71 Eagan 19,698 19,70 Lino Lakes 24,927 24,93 White Beat Lake 51,722 51.72 Lakeville 21,749 21,75 Ramsey 54,020 54.02 Blaine ,it 30,080 30,OB Andover 20,078 20.08 South St Paul 71,048 71.05 Btooklyn Park 24,071 24,07 Champlin 33,179 33.18 Cottage Gtove 58,420 58.42 Maple Grove 61,262 61,26 Bumsville 22,595 22,60 Crystal 36,279 36.28 Maplewood 20,747 20,75 New Hope 25,964 25.96 Shoteview 48,988 48,99 Apple Valley 33,882 33.88 Roseville 21,395 21.40 Prior Lake 60,955 60,96 Eden Prairie 29,335 29,34 Shakopee 21,489 21,49 Hastings 22,113 22,11 New Brighton 22,518 22.52 Chanhassen 54,091 54.09 Woodbury 19,418 19.42 Rosemount 24,662 24.66 Savage 51,657 51.66 Minnetonka 28,137 28,14 Brooklyn Center 44,380 44,38 St Louis Park 47,448 47,45 Edina 20,510 20.51 Golden Valley 50 20 26 54,1 24 60 33,5 24 86 32.5 45.38 80 84 31 50,5 29 37 72 52 33 98,5 48 36,45 37,52 38,5 93,52 34.5 44,5 94.35 52 88,25 98 48.05 0.75 1.02 1,04 1.05 1,10 1,11 1,11 1,20 1,21 1.35 1,37 1.37 1.37 1,37 1,39 1,40 1.43 1.47 1,53 1,54 1,62 1,64 1.70 1.70 1,71 1,73 1,78 1,80 1.83 l,B5 1,99 2.07 2.34 *2005 Met Council Population Estimates average 1,48 Staffing- PW 2.50 J!l c 2.00 Gl ., 'iij I!! 1.50 <:> <:> <:> .... 1.00 ... Gl C. '" 0.50 w l- lL 0.00 ffi ~ ffi ~ ~ ~ ~ Ci.i ~:E ~J! ~]i '8 8. ~ ~~ 1J ~ i ~ i m ~E ~~ ~.!:2 ~ 5i 1~!I~~I~II~llgl!IJI~I~IZml~~II~~1 g~~~ <OOOO~O ~ ~~~~~~c~I ~8~ooc~oo ~~ 0 m ~ZOO~ ~~w mio ~ ~ < w B ~ ~ Andover FIRE DEPARTMENT Memorandum Date: July 16,2007 To: Mayor, City Council and Planning Commission Members From: Dan Winkel, Fire Chief .J:.>. ~ Subject: Proposed Expansion of Cul-De-Sacs The fire department staff has learned that as part of the Subdivision Regulations review and update there may be a proposal to extend the dead end cul-de-sac design standards to a maximum length of 750 feet. The current specifications call for dead end cul-de-sacs to not exceed 500 feet. The specific item is located in Chapter 3, Section 11-3-3, G, Cul-De-Sacs ofthe Subdivision Regulations. The fire department staff would not recommend extending the dead end roads to 750 feet for the following reasons: . Should the road(s) become blocked for any reason; emergency vehicles will not have access to help with emergency situations including fires and medical incidents. Carrying patients for extended distances is not advised or recommended. . The additional length will cause difficulty for the fire department to meet or exceed the minimum water flow rates required for structure fires should the road become inaccessible at any point along its length. In order to properly and safely maintain the required 1,000 gallons per minute of water, the fire department must have a pumper truck positioned about every 500 feet. The trucks should be placed and pumping in series so friction loss and pump capacities are not exceeded. In order to flow 1,000 gallons a minute of water the fire department needs to have one large diameter (5") hose placed the entire length or multiple 2 1/2" hose lays, each of which is capable of supplying only 250 gallons per minute, If the fire department would have to use all 2 \h" inch hose to supply water the entire 750 feet, we would not have enough hose on all of the fire trucks responding to meet the demand. The need to call for mutual aid trucks would be a high priority. Note that the average amount of water flow used in recent history has been in the neighborhood of 600 to 700 gallons per minute during the peak of most events. The fire department has had to flow 1,000 gallons per minute or more on only a few occasions. . Firefighter safety also must be considered when evaluating extended roadway lengths. The long hose lays and potential patient care issues will cause all emergency responders to heavily exert themselves to perform their jobs should access be hampered or blocked. The health and safety of responders is of great . The long dead-end fire apparatus access roads can also present unique road width issues when trying to get fire trucks in and out of the area. It is imperative that a full and unobstructed 20 feet wide access is maintained at all times. The currently proposed 31 feet for rural roads would require the roads to be posted with fire lane parking on at least one side in order to keep the 20 feet width at all times. The proposed 33 foot urban section width is to be considered as a minimum width. Since vehicles and trailers are allowed to be 8 feet wide, the road widths should be a minimum of36 feet wide for parking to be allowed on both sides of the streets. In the past, staff has considered that most vehicles and trailers are somewhat shorter than the 8 foot wide and have not had much of a problem with the 33 foot wide roadways. In order to reduce the number of roadways that may be too narrow or dead ends too long, staff suggests that the Planning Commission recommend to the City Council the adoption of Appendix "D" of the 2006 International Fire Code. Appendix "D" has been included for your review. It is important that a few of the conditions outlined in Appendix "D" be mentioned and highlighted. The 2006 Minnesota Fire Code including the International Code will be presented to the City Council in August for adoption. * Note that if accepted and approved by the City Council, all of the provisions of Appendix "D" would be required and mandatory. ~ If access roads are constructed with a length of 50 1 to 750 feet, and width of26 to 32 feet, then the roads shall be posted on one side as a fire lane with no parking. ~ Fire access roads 20 to 26 feet wide shall be posted on both sides of the road as tire lanes with no parking. ~ There will also be mandatory requirements for two approved access roads as listed in Section D 106. .,... Section D 104 would require three approved access roads for structures exceeding 30 feet in height. ,.. ~ Buildings that exceed 62,000 gross square feet shall have two approved fire access roads unless the building(s) are equipped with automatic fire sprinkler systems. ~ The Appendix "1)" also has designed turnarounds that would be reviewed by staff and approved for use, The designs are minimum standards and could change to wider, but not narrower, dimensions if the Subdivision Regulations call for it. The tire department is also recommending that the words, "Fire Code re.quirements" be added to Section 11-3- 3-A-2. The additional street widths should also include the File Code requirements when it is appropliate. Fire department staffwill be available should you have questions or conunents about the proposed Subdivision Regulation changes. APPENDIX D FIRE APPARATUS ACCESS ROADS The provisions contained in this append;x are not nuzndatory unless specifically referenced in the adopting ordinance. SECTION 0101 DI03.3 Turning radius. The minimum turning radius shall be GENERAL determined by the fire code official. DIDI.l Scope. Fire apparatus. access roads shall be in accor- Dl03.4 Dead ends. Dead-end fire apparatus access roads in dance with this appendix and all other applicable requirements excess of 150 feet (45720 =) shall be provided with width of the International Fire Code. and turnaround provisions in accordance with Table 0103.4. TABLE D103,4 SECTION 0102 REQUIREMENTS FOR DEAD-END FIRE REQUIRED ACCESS APPARATUS ACCESS ROADS Dl02.l Access and loading. Facilities, buildings or portions LENGTH WIDTH (feet) (feet) TURNAROUNDS REQUIRED of buildings hereafter constructed shall be accessible to fire department apparatus by way of an approved fire apparatus 0-150 20 None required access road with an asphalt, concrete or other approved driving 120-foot Hammerhead, 60-foot "Y" or surface capable of supporting the imposed load of fire appara- 151-500 20 96-foot-diameter cul-de-sac in tus weighing at least 75,000 pounds (34 050 kg). accordance with Figure DI03.1 120-foot Hammerhead. 60-foot "Y" or SECTION 0103 501-750 26 96-foot-diameter cnl-de-sac in MINIMUM SPECIFICATIONS . accordance with Figure D103.1 Dl03.l Access road width with a hydrant. Where a fire Over 750 Special approval required hydrant is located on a fire apparatus access road, the minimum road width shall be 26 feet (7925 =). See Figure 0103.1. For SI: I foot = 304.8 mID. ! Dl03.2 Grade. Fire apparatus access roads shall not exceed 10 DI03.5 Fire apparatus access road gates. Gates securing the percent in grade. fire apparatus access roads shall comply with all of the follow- Exception: Grades steeper than 10 percent as approved by ing criteria: the fire chief. 1. The minimum gate width shall be 20 feet (6096 =). 20'""3... . 96' DIAMETER 60"V' MINIMUM CLEARANCE CUL-DE-SAC AROUND A FIRE HYDRANT 60'1 T tr 2B'R TYP: ~J J... 28'R 20,3 TYP: - 26' 20' . 120' HAMMERHEAD ACCEPTABLE ALTERNATIVE TO 120' HAMMERHEAD For SI: 1 foot = 304.8 mm. FIGURE D103.1 DEAD-END FIRE APPARATUS ACCESS ROAD TURNAROUND 2006 INTERNATIONAL FIRE coDell> 397 APPENDIX 0 2. Gates shall be of the swinging or sliding type. Dl04.2 Buildings exceeding 62,000 square feet in area. 3. Construction of gates shall be of materials that allow Buildings or facilities having a gross building area of more than manual operation by one person. 62,000 square feet (5760 m2) shall be provided with two sepa- 4. Gate components shall be maintained in an operative rate and approved fire apparatus access roads. condition at all times and replaced or repaired when Exception: Projects having a gross building area of up to defective. 124,000 sqnare feet (11 520 m2) that have a single approved 5. Electric gates shall be equipped with a means of opening fire apparatus access road when all buildings are equipped the gate by fIre department personnel for emergency throughout with approved automatic sprinkler systems. access. Emergency opening devices shall be approved Dl04.3 Remoteness. Where two access roads are required, by the fire code official. they shall be placed a distance apart equal to not less than one 6. Manual opening gates shall not be locked with a padlock half of the length of the maximum overall diagonal dimension or chain and padlock unless they are capable of being of the property or area to be served, measured in a straight line I opened by means of forcible entry tools or when a key between accesses. box containing the key(s) to the lock is installed at the gate location, 7. Locking device specifications shall be' submitted for SECTION 0105 approval by the fire code official. Dl03.6 Signs. Where required by the fire code official, fire AERIAL FIRE APPARATUS ACCESS ROADS apparatus access roads shall be marked with pennanent NO DlOS.l Where required. Buildings or portions of buildings or PARKING-FIRE LANE signs complying with Figure facilities exceeding 30 feet (9144 mm) in height above the low- D103.6. Signs shall have a minimum dimension of 12 inches est level of fire department vehicle access shall be provided (305 mm) wide by 18 inches (457 mm) high and have red let- with approved fire apparatus access roads capable of accom- ters on a white reflective background. Signs shall be posted on modating fire department aerial.. apparatus. Overhead utility one or both sides of the fire apparatus road as required by Sec- and power lines shall not be located within the aerial fire appa- tionD103.6.lorD103.6.2. rams access roadway. SIGN TYPE "A" SIGN TYPE "C" SIGN TYPE "D" DlOS.2 Width. Fire apparatus access roads shall have a mini- mum unobstructed width of 26 feet (7925 mm) in the immedi- NO NO NO T ate vicinity of any building or portion of building more than 30 PARKING PARKING PARKING feet (9144 mm) in height. 18" DlOS.3 Proximity to building. At least one of the required FIRE LANE FIRE LANE FIRE LANE 1 access routes meeting this condition shall be located within a -+ .... minimum of 15 feet (4572 mm) and a maximum of 30 feet (9144 mm) from the building, and shall be positioned parallel f-12"--j f-12"-I 1-12"-1 to one entire side of the building. FIGURE 0103.6 SECTION 0106 FIRE LANE SIGNS MULTIPLE-FAMILY RESIDENTIAL DEVELOPMENTS Dl03.6.l Roads 20 to 26 feet in width. Fire apparatus Dl06.l Projects having more than 100 dwelling units. Mul- access roads 20 to 26 feet wide (6096 to 7925 mm) shall be tiple-family residential projects having more than 100 dwell- posted on both sides as a fire lane. ing units shall be equipped throughout with two separate and Dl03.6.2 Roads more than 26 feet in width. Fire appara- approved fire apparatus access roads. tus access roads more than 26 feet wide (7925 mm) to 32 Exception: Projects having up to 200 dwelling units may feet wide (9754 mm) shall be posted on one side of the road have a single approved fire apparatus access road when all as a fire lane. buildings, including nonresidential occupancies, are equipped throughout with approved automatic sprinkler systems installed in accordance with Section 903.3.1.1 or SECTION 0104 903.3.1.2. COMMERCIAL AND INDUSTRIAL DEVELOPMENTS Dl06.2 Projects having more than 200 dwelling units. Mul- Dl04.l Buildings exceeding three stories or 30 feet in tiple-family residential projects having more than 200 dwell- height. Buildings or facilities exceeding 30 feet (9144 mm) or ing units shall be provided with two separate and approved fire three stories in height shall have at least three means of fire apparatus access roads regardless of whether they are equipped apparatus access for each structure. with an approved automatic sprinkler system. 398 2006 INTERNATIONAL FIRE CODE@ APPENDIX D SECTION D107 ONE- OR TWO-FAMILY RESIDENTIAL DEVELOPMENTS DI07.1 One- or two-family dwelling residential develop- ments. Developments of one- or two-family dwellings where the number of dwelling units exceeds 30 shall be provided with separate and approved fire apparatus access roads and shall meet the requirements of Section D104.3. Exceptions: I 1. Where there are more than 30 dwelling units on a sin- gle public or private fire apparatus access road and all dwelling units are equipped throughout with an approved automatic sprinkler system in accordance with Section 903.3.1.1, 903.3.1.2 or 903.3.1.3.3, access from two directions shall not be required. 2. The number of dwelling units on a single fire appara- tus access road shall not be increased unless fire appa- ratus access roads will connect with future development, as determined by the fire code official. ! 2006 INTERNATIONAL FIRE CODE@ 399