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HomeMy WebLinkAboutCC August 6, 2008 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US Regular City Council Meeting - Wednesday, August 6, 2008 Call to Order-7:00 p.m. Pledge of Allegiance Presentation - Central Center for Family Resources - Kathy Samilo Resident Forum Agenda Approval 1. Approval of Minutes (6/24/08 Workshop/Amended 7/15/08 Regular Meeting) Consent Items 2. Approve Payment of Claims - Finance 3. Approve Dental Renewal and Employer Contribution - Administration 4. Approve On-Sale 3.2% Malt Liquor License/Tasty Pizza - Administration 5. Approve Hold Harmless & Easement Encroachment Agreement/Lt. 15, Blk. 3, Woodland Crossings- Engineering 6. Approve Hold Harmless & Easement Encroachment Agreement/14520 Jay Street NW - Engineering 7. Approve Hold Harmless & Easement Encroachment Agreement/2410 - 1515t Avenue NW - Engineering 0 8. Approve Hold Harmless & Easement Encroachment Agreement/289 - 139th Avenue NW - Engineering 9. Approve Hold Harmless & Easement Encroachment Agreement/1519 - 159th Avenue NW - Engineering 10. Approve Change Order #1/2008 Overlays/08-2A (Northglen Area) - Engineering 11. Approve Contract for School Liaison! Anoka-Hennepin School District - Administration 12. Award Bid for Fire Department Tanker Truck - Fire Discussion Items 13. Adopt Resolution Appointing Election Judges for Primary Election - Administration 14. Discuss Pool Fencing Requirements - Planning 15. Discuss Cell Towner Lease Buy-out Proposal-Administration Staff Items 16. Schedule EDA Meeting - Administration 17. Schedule September Council Workshop - Administration 18. Administrator's Report - Administration Mayor/Council Input Adjournment 0 c .~ T y- o f NDOVE 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.C\.ANDOVER.MN.US Regular City Council Meeting - Wednesday, August 6, 2008 Call to Order - 7:00 p.m. Pledge of Allegiance Presentation - Central Center for Family Resources - Kathy Samilo Resident Forum Agenda Approval 1. Approval of Minutes (6/24/08 Workshop/Amended 7/15/08 Regular Meeting) Consent Items 2. Approve Payment of Claims - Finance 3. Approve Dental Renewal and Employer Contribution - Administration 4. Approve On-Sale 3.2% Malt Liquor License/Tasty Pizza - Administration 5. Approve Hold Harmless & Easement Encroachment Agreement/Lt. 15, Blk. 3, Woodland Crossings- Engineering 6. Approve Hold Harmless & Easement Encroachment Agreementl14520 Jay Street NW - Engineering 7. Approve Hold Harmless & Easement Encroachment Agreement/2410 - 151 sl Avenue NW - Engineering 0 8. Approve Hold Harmless & Easement Encroachment Agreement/289 - 139th Avenue NW - Engineering 9. Approve Hold Harmless & Easement Encroachment Agreement/1519 - 1591h Avenue NW - Engineering 10. Approve Change Order #112008 Overlays/08-2A (Northglen Area) - Engineering 11. Approve Contract for School Liaison! Anoka-Hennepin School District - Administration 12. Award Bid for Fire Department Tanker Truck - Fire Discussion Items 13. Adopt Resolution Appointing Election Judges for Primary Election - Administration 14. Discuss Pool Fencing Requirements - Planning 15. Discuss Cell Towner Lease Buy-out Proposal- Administration Staff Items 16. Schedule EDA Meeting - Administration 17. Schedule September Council Workshop - Administration 18. Administrator's Report - Administration Mayor/Council Input Adjournment 0 --- C I TV 0 F 0 NDOVE 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: Special Presentation - Central Center for Family Resources DATE: August 6, 2008 Kathy Samilio and Patty Halvorson from the Central Center for Family Resources will be present at the meeting to present to the City Council the services that Central Center provides to families and individuals from Andover. 0 Attachments 0 Central Center Family and Children Counseling 0 for Family Resources Central Center for Family Resources (CCFR) is a nonprofit 501~3 organization that is considered to be the primary provider of children and family counseling services in the Anoka County area. In 2007, CCFR assisted more than 3,000 families in successfully addressing behavioral and emotional issues that were negatively impacting these families. Established in 1979, CCFR is committed to providing quality services to all individuals and families in need, regardless of ability to pay, and to provide these services where they can be easily accessed. Central Center for Family Resources' mission has been and continues to be "To identifY the needs oftroubled children, youth and their families, strengthen the family unit and expand support systems to prevent problems from becoming chronic." In fulfilling our mission, CCFR provides a broad array of services to meet the community's needs. Services include psychological and psychiatric assessments, as well as individual, group, family and marital counseling. Weare a comprehensive, full service clinic, .are providers on most insurance networks and also provide sliding fee services for those without insurance or high deductibles. In our main clinic we have 2 child psychiatrists. We also have 3 psychologists who only do testing and over 20 licensed Master's or PhD level therapists with specialties and expertise in such areas as play therapy, group th~apy for all ages, biofeedback, couples therapy, children and/or adolescents, 0 early childhood issues, and personality disorders. Additionally, CCFR provides several unique community based programs. These programs are listed below: Domestic Abuse Program: Central Center has a domestic abuse program that provides group and individual services for men, women, adolescents, and children. More information on the following services can be obtained by calling the following numbers: Men's program 763-783-4991 Women's program 763-783-4990 Children's program 763-780-3036 Adolescent groups 763-780-3036 Women's Anger management group 763-783-3036 Sexual Assault Program 763-780-3036 Central Center started a sexual assault program in the summer of 2007 due to a lack of such services in the northern suburbs. Contact: Judith Zimmerman Child and Adolescent Groups 763-780-3036 Central Center offers group therapy for children and adolescents. They are offered on an as needed basis and address such issues anger management, divorce adjustment, empowerment, emotion regulation, etc. and can be time limited or ongoing. 0 Parenting Classes 763-780-3036 Six week parenting classes are offered quarterly and are utilize the STEP (Systematic Training in Effective Parenting) curriculum Childcare is provided and scholarships are offered if a family cannot afford the full tuition. School Based Peer Support Groups: For over 29 years, Central Center has provided support groups for students at risk in the various Anoka Hennepin school districts. These groups are provided free to students and their families 0 and many are also offered at no charge for the schools as well. Prevention Specialists: Central Center provides prevention specialists in 5 Anoka-Hennepin High schools, one alternative high school and one alternative middle school. These individuals provide various support groups for students as well as alcohol and drug education for students and staff in the schools. They also supervise peer mediation among students. Bell Center Day Treatment Program: Central Center provides day treatment services at Bell Center in Coon Rapids for students in grades kindergarten through 8th grade. Centennial High School Day Treatment Program: Central Center provides day treatment services for students in grades 9-12 at Centennial High School in Lino Lakes. Therapeutic Support Consultants: Central Center provides licensed mental health professionals to many of the schools in the Anoka Hennepin School district. These professionals provide therapy to special ed students in the schools who have difficulty accomplishing their IEPs (Individualized educational plans) without such support. In addition, they provide consultation to teachers, social workers, psychologists, and other professionals working with these students so that they may also better meet the needs of these youth. 0 Bridgeview Club: 763-783-7440 Bridgeview Club is a psychosocial drop in center for adults with serious and persistent mental illness. They provide classes, and art program, outings, informational services, therapy groups, support groups and other services. Sliding Fees Available based on Income. To Volunteer or Make a Donation call 763-780-3036 and ask/or Patty 0 (.0 - +-' ." 0 CO s.... IV 0 ~ 0 ~ N s::: c.. l"-. "C >> OJ'" s::: Q) ~. ~;:g:: "... :5 0: <C ~ ~ ~ tI) "'" .;: '" ~ ~ '-,l o .S (,) ~ "\:j" ... '.... :::I '" \1J 0: lJ) u.. 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WWW.CI.ANDOVER.MN.US TO: Mayor and City Council CC: Jim Dickinson, City Administrator FROM: Michelle Hartner, Deputy City Clerk SUBJECT: Approval of Minutes DATE: August 6, 2008 INTRODUCTION The following minutes were provided by TimeSaver for City Council approval: June 24, 2008 (Amended) Special City Council Workshop 0 July 15,2008 Regular Meeting July 22, 2008 City Council Workshop DISCUSSION The minutes are attached for your review. ACTION REQUIRED The City Council is requested to approve the above minutes. Respectfully submitted, ~ I .. ~ chelle Hartner Deputy City Clerk Attach: Minutes 0 0 SPECIAL ANDOVER CITY COUNCIL WORKSHOP - JUNE 24,2008 MINUTES The Special Council Workshop of the Andover City Council was called to order by Councilmember Ken Orttel, June 24, 2008, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Mayor Mike Gamache (arrived at 6:01 p.m.), Don Jacobson, Mike Knight, Ken Orttel, and Julie Trude Councilmembers absent: None Open Space Advisory Commissioners present: Deric Deuschle, Bruce Perry, and Kim Kovich Also present: City Administrator Jim Dickinson Director of Public Works/City Engineer Dave Berkowitz Director of Community Development Will Neumeister 0 City Planner Courtney Bednarz APPROVEAGENDA Agenda approved as submitted. Mayor Gamache arrived at 6:01 p.m. DISCUSSION WITH OPEN SPACE ADVISORY COMMISSION Mr. Bednarz advised that the Open Space Advisory Commission had previously mentioned the idea of establishing corridors and thought that it would be good to explain the purpose of the corridors to the Council so that they may better understand the need. He explained that the purpose of the corridors is to identify where the natural areas and features lie within the City. Commissioner Deuschle thought that more discussion was needed on the thoughts behind the process that the Commission had used. He explained that the corridors would not have an effect on the residents living in them and would not change anything. He advised that the benefits of having the corridors would be that it would allow the Commission to narrow their focus, to keep the natural areas connected, and it also gives the City the ability to apply for additional grants. He advised that 0 there is no intention of there being a negative impact to property owners. Councilmember Trude advised that staffhad informed the Council that this was to be put into code form so that it could be put into the City code book and questioned if there would be a less formal process. She advised that residents may feel that there would be restrictions if the City is blanketed 0 Special Andover City Council Workshop Meeting Minutes - June 24, 2008 Page 2 by corridors. She stated that if any changes needed to be made to the corridors, and it was in the code book, there would be a long, legal, complicated process to follow. She questioned if the corridors could be done without being added to the code book. Mr. Bednarz advised that if the Council were interested in adopting the corridors they could do that as part of the comprehensive plan. He stated that there would not be any land use regulations tied to the corridors and again explained that the purpose of the corridors is to identify where the natural features are located. Councilmember Orttel thought that this seemed similar to an R1 or R4 zoning. He explained that the City could have the first right to buy the property if it were to be placed for sale. Councilmember Knight commented that because the corridors are not exact and cannot be described they would be unable to code them. Councilmember Trude advised that is why she was concerned. Mr. Bednarz advised that the corridors would help them to gain grant money and explained that the 0 map could be adopted with text explaining the purpose and then would not have to be coded. Councilmember Orttel stated that the comprehensive plan prevails over the code book but advised that the two documents would still need to comply with each other. Mr. Bednarz explained that the two documents would comply with each other as the corridor is only identifying natural areas and does not have any regulations. Mr. Dickinson advised that it would be similar to the transportation plan. Councilmember Ortte1 stated that if you wanted to make changes to the map they would need to amend the comprehensive plan and questioned if the map would need to be updated with every development. Mr. Bednarz explained that the map could be updated when the comprehensive plan updates are made. Councilmember Trude thought that this was similar to a project that the City Council is currently working on with a developer and questioned if developers would need to change the configuration of their plans because of the corridors. 0 Mr. Bednarz explained that the corridors would not change the land use and zoning regulations that the City has in place. He thought that the map could be used by the City as a tool to determine where they might want to add a park or need a trail. Councilmember Trude thought that the public might use the map against the City to stop 0 Special Andover City Council Workshop Meeting Minutes-June 24,2008 Page 3 development in certain areas and was concerned about ending up in court over private property Issues. Councilmember Jacobson stated that they could give the corridor map to developers when they come into the City so they are aware of the natural areas. Councilmember Knight questioned how definitive the DNR wants the City to be with the corridors. Commissioner Kovich stated that if the DNR is going to give you money they want the information that they are requesting. He advised that they would have to put the natural areas on a map somewhere and explained again that this would not include any restrictions or changes being made. Councilmember Orttel questioned what the reasons for the corridor were, other than inventory. Commissioner Deuschle advised that some grants are contingent on having the corridors identified. Councilmember Ortel questioned if they could have the map on the wall without putting it into a document or coding it. 0 Mr. Bednarz advised that they could do that locally but explained that it would not be enough for the DNR. Commissioner Deuschle advised that the corridor shows how the natural areas and how they are connected throughout the city. He explained that there might be developed areas included as they have to connect the natural areas somehow. Mr. Bednarz explained that there are also trees and plants within developments. Commissioner Deuschle advised that the majority of the areas shown are not areas that they would be interested in purchasing. He stated that there are already two DNR designated corridors within the city and advised that there have not been any problems with those. Councilmember Trude questioned how those were established. Mr. Bednarz advised that the DNR adopted a seven county map. Mayor Gamache advised that this map would allow the City to show the natural areas to the public and then go to the DNR with the corridors to determine if funding is available. He explained that they would still have the same zoning and this would not include any new regulations. He advised 0 that these would be ideal sites but in a willing seller and willing buyer situation. Councilmember Orttel confirmed that if this were not in the code and they did find a parcel they would have to identify it within the comprehensive plan through an amendment in order to apply for the grant. He explained that they would then be submitting an amendment on a resident's property 0 Special Andover City Council Workshop Meeting Minutes-June 24,2008 Page 4 and thought it would cause problems. He thought it would be better to have an overall map. He also thought that this would be beneficial when new members come onto that Commission, so that they would be aware of the existing natural areas. Councilmember Trude agreed that with good verbal documentation this could be a good tool for people to use. Commissioner Kovich advised that conservation easements could also be shown on the map. Councilmember Trude questioned what the red lines were on the map. Commissioner Kovich advised that those lines were in place from the Conservation District and explained that they are outdated and would be removed. Mayor Gamache thought that this would be helpful to show developers where the City would like to have natural lands. Councilmember Jacobson commented that it has taken the Commission a year to develop this and 0 questioned what they would do next. Commissioner Deuschle replied that the Commission would use this information to be proactive and contact prospective landowners. He advised that they are going to hold an open house for the public and residents that might be interested in selling their land. He advised that they would also be sharing the results of some of their grant work at the open house. Mr. Dickinson advised that there are currently some dollars available that they would not need to bond. He explained that when they are interested they would be able to bond. He thought that they would find willing sellers. Councilmember Knight advised that he is getting questions from the public on the status of the open space. Commissioner Kovich explained that they are setting the ground work for future Commissions to use. He stated that the open house is going to be a good opportunity to show the public what they have been working on and what is planned. Councilmember Jacobson thought that someone from that Commission could write something up for the next newsletter. 0 Councilmember Trude questioned ifthey should have another corridor that would stretch from the yellow line and incorporate the wooded area. Commissioner Deuschle advised that the corridors do not follow any property lines. 0 Special Andover City Council Workshop Meeting Minutes - June 24, 2008 Page 5 Mr. Dickinson commented that the identification of the corridors is more for the grant purposes and explained that the referendum states that the land just has to be within the City limits. Councilmember Knight questioned if any work had been done on legacy or memorial pieces. Commissioner Kovich advised that the Conservation District has had two pieces that had been donated recently through conservation easements. He stated that they had not yet had that happen in Andover but if land were donated they would place a memorial sign on the land. Councilmember Jacobson questioned if the open house would be announced in the newsletter. Commissioner Deuschle stated that they had missed the deadline for the next newsletter and explained that is why they are going to have the open house in September, so that they would be able to get something in the next newsletter before the event. He stated that the landowners that they are most interested in would receive a direct mailing from the City. He advised that they would also have some outside experts at the event, such as a representative from Minnesota Land Trust. Councilmember Knight thought that they could also do a spot on QCTV for the event. 0 Mayor Gamache commented that it would be a good opportunity to educate the public. Councilmember Trude questioned if the next step would be to adopt this. Mr. Bednarz advised that it would become part of the comprehensive plan, as that is the most public document in the City. He advised that this would also give them the opportunity to work with the DNR to update their corridors and with the ability to gain grant money. Councilmember Trude questioned how something could be in the corridor if all the natural areas had been destroyed. Mr. Bednarz explained that when they are finished with the sod farm it would only take about two years to return to a natural state. He advised that just because something is in the corridor does not mean that they would have to buy it. Commissioner Deuschle explained that the purpose of the corridor is to identify the natural areas and to show the connectivity. Councilmember Orttel questioned what notice would need to be given for this. 0 Mr. Bednarz advised that they would have the open house and the adoption of the map would go along with the comprehensive plan. Mayor Gamache thought that it would be beneficial for them to have aerial maps of the city at the open house. He thought that the Commission did a great job and that the open house would be a 0 Special Andover City Council Workshop Meeting Minutes - June 24, 2008 Page 6 good idea. Councilmember Trude questioned if this could change with public input. Commissioner Deuschle advised that they have a professional botanist researching this topic now and that is the input they would be sharing at the open house. Councilmember Knight congratulated the Commission on their hard work. Commissioner Deuschle thanked Mr. Bednarz for all the help he has given to the Commission throughout this process. Mayor Gamache commented that Mr. Bednarz had been a big help on this project since the inception of the open space referendum. Mr. Bednarz confirmed that they then have a green light to use this map as a working document. He reported that the open house for the public would be held in mid-September. 0 Mayor Gamache directed the meeting to a bus at 6:45 p.m. so the Council could go on a community tour. AWARD QUOTE/07-37A/METROPOLITAN MOSQUITO CONTROL Motion by Jacobson. Seconded by Knight. to approve quotes and award proiect 07-37A. Metropolitan Mosquito Control to Forest Lake Contracting. Motion carried unanimously. COMMUNITY TOUR Council and staff went ona bus tour of the City to see how some projects are moving along and get a feel for what could have been changed or needs to be changed to acheive the outcomes the council desires. The following are the various stops on the tour: Potential Open Space Preservation Area East of Hanson Boulevard, Country Oaks West, Millers Woods, Hickory Meadows, Bunker Lake boulevard railroad crossing, Andover Station North, Andover Station South, Crosstown Redevelopment Area, North Glen Mill and Overlay project, Fox Cove Sketch Plan area, Woodland Creek Golf Course, code enforcement problem property, Rural Reserve Area, Hughes Industrial Park, Cardinal RidgelW oodland Crossing/Shaws Glen, and Woodland Estates farm road area. 2009 - 2013 CIP DEVELOPMENT PROGRESS REPORT 0 Staff presented a progress report on the 2009-2013 Capital Improvement Plan to the Council. Mr. Dickinson stated that staff is focusing on equipment items for the CIP. Staffhas also updated various projects identified in the CIP. 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 0 Special Andover City Council Workshop Meeting Minutes - June 24, 2008 Page 7 detailed cash flow analysis of funding sources and presented to the Council for a detailed review at future workshops. Mr. Dickinson indicated that Staff is seeking the Councils first blush review of the projects and equipment proposed and additional Council direction on whether or not the Council's priorities are being met with the current 2009-2013 CIP work product. Staffwill then take those comments into consideration before the presentation of a "Draft 2009-2013 CIP" in September. The Council felt that staff was going in the right direction and stressed that the CIP proposed in September be a document that is usable and fiscally responsible. 2009 BUDGET DEVELOPMENT PROGRESS REPORT Mr. Dickinson stated City Departments are well underway to compiling their proposed 2009 Annual Operating Budgets; the deadline for each department's submission to Finance/Administration is July 3, 2008. Mr. Dickinson stated the deadline for new staffing requests is July 3rd also. He is anticipating that 0 requests are forthcoming from the Fire Department and the Community Center. The staffing request for the Fire Department will likely be accompanied by a grant application and the Community Center request will be requested to assist with concessions and program management. A staffing request for the Community Center will flow through the Community Center Advisory Commission and be dependent on available revenue sources. The Council expressed concern about the Fire Department staffing requests and wanted staff to analyze the future impacts of the staffing costs after the grant dollars end. Mr. Dickinson stated the Comprehensive Annual Financial Report for the year ended December 31, 2007 reported that the City did achieve it's 2008 budget goal of establishing the General Fund fund balance for working capital at no less than 35% of planned 2008 General Fund expenditures ($8,885,654). $3,417,244 was available, which equates to a 38.45% fund balance for working capital for the 2008 Budget. Department Heads are working on 2008 revenue and expenditure estimates that will assist in achieving the Council 2009 budget guideline that works toward establishing the General Fund fund balance for working capital at no less than 35% of planned 2009 General Fund expenditures. The estimates are also necessary to preserve the emergency reserve fund balances for core services (snow emergency, facility management, and information technology ). 0 Based on reviews to date, there are a number of2008 revenue line items that are forecasted that will significantly not meet their 2008 budget. Most notably: Finance Fees, Planning and Zoning Fees, Engineering Fees, Protective Inspection (Building) and Interest Earnings. Based on reviews to date, there are a number of 2008 expenditure line items that are forecasted to 0 Special Andover City Council Workshop Meeting Minutes -June 24,2008 Page 8 significantly exceed their 2008 budget. Most notably: Fuel (gas & diesel), Sign Material~, Crack Fill/Seal Coat Materials, GarbageIRecycling Fees, and Salt/Sand. A total salary compensation adjustment package will ultimately be proposed to provide wages that are competitive with other government entities. Human Resources indicates that 2009 wage proposals in other communities for a cost-of-living increase are ranging from 2.5% to 3.5%. At this point no percentage has been established. Council indicated that an increase should be comparable to neighboring cities. Mr. Dickinson presented some staffmg cost saving strategies, including the offer of reduced hours to various staff. He felt he would get more participation if the employer contribution on health insurance was not prorated. Council indicated they would like to see more details on this proposal. Mr. Dickinson indicated that the 2009 Anoka County Sheriff's contract is currently being negotiated and close to a 10% expenditure increase is expected due to the following: employer PERA 0 contribution increases that start in 2009, a full year of the patrol investigator versus the 2008 mid year implementation, fuel prices, and increased equipment maintenance costs. Mr. Dickinson is recommending a status quo contract relative to services provided by the Sheriff. Council direction was to not seek additional services in the 2009 Sheriff contract. COMPREHENSIVE PLAN UPDATE DISCUSSION Mr. Neumeister reviewed with the Council what has been submitted by other surrounding jurisdictions and the progressc staff was making on processing the Comprehensive Plan update. The Council expressed concern about Oak Grove's plan that shows they are contemplating a MUSA expansion that would tie into the East Bethel sewer plant that is being planned. The Council directed staff to draft a letter to the City of Oak Grove identifying the concerns of the Council including the city's extensive reviews of rural areas of the city in recent years and the decision to maintain the northern areas of the city as rural without utilities. Mr. Nuemeister indicated that a letter would be on the July 1 st Council agenda for the Council to review. OTHER BUSINESS ITEMS Mr. Dickinson explained to the Council the details of the funding sources discussed at the last 0 Council meeting relative to the land purchase. He was directed to prepare an agenda item for the next Council meeting to approve the funding sources. Staff was directed to secure a booth at the Funfest. 0 Special Andover City Council Workshop Meeting Minutes - June 24, 2008 Page 9 Motion by Jacobson, Seconded by Knight, to adjourn. Motion carried unanimously. The meeting adjourned at 9:35 p.m. Respectfully submitted, Amanda Staple, Recording Secretary 0 0 0; 3 4 5 6 REGULAR ANDOVER CITY COUNCIL MEETING-JULY 15,2008 7 MINUTES 8 9 10 The Regular Bi-Monthly Meeting of the Andover City Council was called to order by Mayor Mike 11 Gamache, July 15,2008, 7:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, 12 Andover, Minnesota. 13 14 Councilmembers present: Don Jacobson, Mike Knight, Ken Orttel, Julie Trude 15 Councilmember absent: None 16 Also present: City Attorney Scott Baumgartner 17 Director of Public Works/City Engineer, Dave Berkowitz 18 City Administrator, Jim Dickinson 19 Community Development Director, Will Neumeister 20 Others 21 22 ~~ PLEDGE OF ALLEGIANCE 25 26 RESIDENT FORUM 27 28 No one wished to address the Council 29 30 31 AGENDA APPROVAL 32 33 Add Item 8a, (Community Outreach Event). 34 35 Motion by Jacobson, Seconded by Knight, to approve the Agenda as amended above. Motion 36 carried unanimously. 37 38 39 APPROVAL OF MINUTES 40 41 June 24, 2008, Workshop Meeting: Correct as amended. 42 43 Councilmember Trude stated on page 2, line 10 the word at the end should be ''the'', not "he". Page O~ 6 at the beginning of line 25, should be "feel" instead of "fell". "Crosstown" is misspelled on line 28. On page 7, line 29 should be plural "Department Head~". 46 47 Councilmember Trude indicated she had one change on page 8, line 28-29, it was the discussion 48 about the City of Oak Grove and identifying the concerns of the Council and she wanted to elaborate 0 Regular Andover City Council Meeting Minutes - July 15, 2008 Page 2 1 on what the concerns are. The following should be added to the sentence: "including the City's 2 extensive reviews of rural areas of the City in recent years and the decision to maintain the northern 3 areas of the City as rural without utilities." She thought this was an important part of the City's 4 record and it should be in writing. 5 6 Motion by Trude, Seconded by Orttel, approval of Minutes as indicated above. Motion carried 7 unanimously. 8 9 July 1, 2008, Regular Meeting: Correct as written. 10 11 Motion by Trude, Seconded by Jacobson, approval of Minutes as indicated above. Motion carried 4 12 ayes, 1 present (Knight). 13 14 15 CONSENT ITEMS 16 17 Item 2 Approval of Claims 18 Item 3 Approve Debt Service Payment 019 Item 4 Consider Approval of Premises PermitIMoose & Co. Grillhouse/Andover Football 20 Association (See Resolution R060-08) 21 22 Motion by Jacobson, Seconded by Knight, approval of the Consent Agenda as read. Motion carried 23 unanimously. 24 25 26 RECEWEANOKA COUNTY SHERIFF DEPARTMENT MONTHLY REPORT 27 28 Captain Tom Wells, Anoka County Sheriff's Department, introduced to the Council Deputy Scott 29 Nealy as the new Andover Investigator. 30 31 Captain Wells provided an update on law enforcement activities occurring within Andover. 32 33 Councilmember Trude wondered if any of the DWI's related to the outdoor concerts they had. 34 Captain Wells did not think: they were directly related but would need to check to make sure. 35 36 Councilmember Jacobson asked if the incidents related to burglaries involve Andover residents or 37 outside of Andover. Captain Wells stated with these incidents they were Anoka County residents but 38 not Andover residents. 39 040 1:11 DISCUSS AUTHORIZING STAFF TO NEGOTIATE BOND SALE 42 0 Regular Andover City Council Meeting Minutes - July 15, 2008 Page 3 1 The Council is requested to call for the sale of approximately $650,000 General Obligation 2 Equipment Certificates to provide fmancing for the equipment purchases contemplated through the 3 2008 City of Andover annual budget process. 4 5 Motion by Jacobson, Seconded by Knight, to authorize the negotiation of the sale of bonds with a 6 local bank for approximately $650,000 in general obligation equipment certificates. Motion carried 7 unanimously. 8 9 10 DISCUSS ANDOVER STATION NORTH BALL FIELD FACILITY BUILDING FUND 11 12 City Administration is seeking Council direction on how to fund the completion of the building at 13 Andover Station North Ball Fields. 14 15 Mayor Gamache asked to secure and test what the anticipated cost is. Mr. Dickinson stated to 16 get the lower level occupied they are looking for $75,000 but to secure the building they are 17 looking in the $45,000 area. If they want to get to the point of completing bathrooms, etc., he 18 would be looking at $75,000 to complete it. 019 Mr. Dickinson stated he did have a conversation with the Baseball Association. They would like 20 21 to participate in moving forward and assisting with the closure of this structure. As dollars 22 would permit they would like to participate but at this point in time they cannot make a 23 significant commitment. 24 25 Mayor Gamache asked if they will have to pay for the $21,000 owed for heating and air and the 26 $14,000 for electrical and would this be above and beyond the $70,000. Mr. Dickinson stated 27 that would be in the dollars he is asking for. He stated everything on the list will not be 28 completely done but they will have the ability of having occupancy on the lower level of the 29 building. 30 31 Commissioner Knight asked once the baseball season is over what the building would be used 32 for. Mr. Dickinson stated they do want to store equipment there and use it for meeting rooms. 33 This winter it will be used for storage. 34 35 Mr. Berkowitz reviewed some of the items that will be completed for the season next year and 36 what they need in order to get a temporary certificate of occupancy. 37 38 Councilmember Jacobson asked where they will get the $75,000 from. Mr. Dickinson indicated 39 it will come out of the Capital Reserve Fund. He stated the fund at the end of 2007 was O:~ approaching a little over half million, which is used to fund gaps. They will be looking to replenish that as part of the 2009 budget process and it would be part of their CIP plan. 42 43 Councilmember Jacobson asked if they did the very minimum improvements how much money 44 would they be spending to do that. Mr. Berkowitz stated they would need to payoff some of the 0 Regular Andover City Council Meeting Minutes - July 15, 2008 Page 4 1 outstanding bills. Mr. Dickinson stated he is looking at spending $40,000 to $45,000 at the 2 mmnnum. 3 4 Councilmember Orttel asked if they used $45,000 this year would it be $30,000 next spring to 5 open the building. Councilmember Trude thought it might be more with rising costs. She 6 thought it would make sense to do it now during the down time and they may be able to get 7 discounts. She supported getting this done. 8 9 Motion by Knight, Seconded by Trude, to authorize the City to complete and secure the baseball 10 complex building using funds from the Capital Reserve Fund in the amount of $75,000. 11 12 Councilmember Orttel stated they had talked about shutting the building down in the winter so 13 they will not have to heat it. He wondered if they are still going to do that if they are going to 14 charge the suppression system. Mr. Berkowitz indicated they will not be able to shut them down 15 completely but will lower the heat. He stated they could revisit this and see if that is an 16 opportunity but he knows that is a concern. 17 18 Councilmember Orttel thought with rising heating costs, the City needs to deal with that and he q~ thought it is foolish to have the buildings that are used only in the summer be heated in the winter. It does not seem worth it for the City to heat it. 21 22 Councilmember Jacobson stated he is going to vote no because he thinks they should spend the 23 $40,000, board it up and work on it next spring. Councilmember Trude stated if they do not use 24 the Capital Reserve money now it will roll over and they will be using the same money next 25 spring and it might escalate because materials will be going up. Councilmember Jacobson stated 26 he would like to protect the money as long as he can because they do not know what they are 27 facing for the rest of the year or what the Legislature is going to do to them. 28 29 Motion carried 4 ayes, 1 nay (Jacobson). 30 31 32 APPROVE BID FOR PURCHASE, MOVING, & SITE CLEAN UP OF VACANT HOUSE/14905 33 CROSSTOWN BOULEVARD 34 35 Councilmember Ortte1 removed himself from discussion and voting because of conflict of interest. 36 37 The Council is asked to approve the bid for moving the house and remediating the site. 38 39 Motion by Jacobson, Seconded by Knight, to table all bids for sixty days and to allow the regular d~ process for a CUP by the highest bidder. 42 Councilmember Trude asked on the bid that was presented there are six items with prices next to 43 a couple of them but she presumed that included everything. Mr. Berkowitz stated they are all 44 wrapped together. 0 Regular Andover City Council Meeting Minutes - July 15, 2008 Page 5 1 2 Motion carried 4 ayes, 1 present (Orttel). 3 4 5 COMMUNITY OUTREACH EVENT FOR FREEDOM CHRISTIAN CENTER 6 7 City Administrator Dickinson stated Freedom Christian Center uses City Hall for services on Sunday 8 mornings and they have requested the use of the City Center grounds to hold a one day event as 9 described in a letter from the organization. He stated he is bringing this forward to the Council 10 because they normally do not allow City Hall grounds for this type of event. 11 12 Councilmember Trude wondered if they were provided the rental paper work they give to any 13 organization that uses city facilities. Mr. Dickinson stated Sunshine Park was not requested but 14 if the Council would like them to offer it they wilL There is a rental charge for the gazebo but 15 otherwise there will be no cost for the rest of the grounds because they are a non-profit 16 organization. 17 18 Councilmember Orttel wondered ifthere.is adequate water and electricity at Sunshine Park for 019 this event. Mr. Dickinson indicated there is electricity in the gazebo and water in the concession 20 area. He stated there are no tournaments scheduled that weekend. The only thing they will need 21 to do for the grounds is coordinate with football practices at that time. 22 23 Pastor Mark Reed made a presentation to the City Council in regard to their Community Outreach 24 Event they want to hold in Andover. 25 26 Councilmember Jacobson asked if a permit would be necessary to serve food. Mr. Dickinson 27 stated if they are going to be doing a certain type of food service it would require a permit from 28 Anoka County Public Health Department. 29 30 Councilmember Jacobson asked ifthey do a car wash will they need to pay for water use. Mr. 31 Dickinson stated they could put a water meter there. Councilmember Jacobson stated the only 32 other problem is live music. There are sound levels they need to be aware of. Pastor Reed 33 indicated they do have decibel level meters. They can check if the ordinance has certain levels 34 and they can also aim the P .A. system away from any residential areas. He noted they will be 35 over by 8:00 p.m. and there will not be any alcohoL 36 37 Councilmember Jacobson indicated he would rather have this event staged at Sunshine Park 38 rather than the city grounds. Councilmember Trude and Orttel agreed. 39 O~ Councilmember Orttel thought it would be cheaper to agree to a water fee rather than have someone hook up a meter. 42 0 Regular Andover City Council Meeting Minutes - July 15, 2008 Page 6 1 Councilmember Trude stated Sunshine Park is a facility they built for community use and rental 2 and City Hall has always been government space. They are pretty unique in allowing people to 3 use the. chambers because of the stains that have occurred. 4 5 Pastor Reed asked if they can put up signs indicating where the event is located at. Mayor 6 Gamache did not think that would be a problem. He suggested working with City Staff on that. 7 8 Motion by Jacobson, Seconded by Orttel, to deny the request from Freedom Christian Center to 9 utilize the Andover City Center grounds for a one day community outreach event but authorize 10 the use of facilities at Sunshine Park for an event subject to the normal rules that pertain there 11 and allowing temporary signs and waiving the normal sign processing fee. Motion carried 12 unanimously. 13 14 15 ADMINISTRATOR REPORT 16 17 City Administrator Dickinson updated the Council on the administration and city department 18 activities, meeting reminders and miscellaneous projects. 019 City Engineer Berkowitz updated the Council on road improvements projects in the City. 20 21 22 Community Development Director Neumeister updated the Council on development activity in 23 the City. 24 25 26 MAYOR/COUNCIL INPUT 27 28 (Recycling) - Councilmember Jacobson stated he received a phone call from a resident asking 29 when or if their recycling plans will include recycling of the higher grades of plastic that do not 30 recycle right now. He indicated he thought there was talk about it. Councilmember Trude stated 31 she talked with their recycling coordinator this past weekend and she explained that they have to 32 staff the facility to take all those items to make sure they are not getting a lot of garbage and to 33 separate them out. She said they choose to keep the recycling center open without staff because 34 more people bring things in the evening hours and it would increase their staffing costs and at 35 this point it is probably better to bring it to Coon Rapids where they have staffmg. 36 37 (Sprinkling Bans) - Councilmember Jacobson asked if public works employees are still checking 38 on sprinkling at different hours of the day. Mr. Berkowitz stated they have seasonal people do 39 that who are supervised on site. They will review that to see if there is a possibility to stagger o:~ some of their hours. 42 (Met Council Article) - Councilmember Jacobson stated he read an article from the Met Council 43 about Andover needing 650 affordable housing units by 2020 and he wondered how this could be 44 accomplished. Mr. Neumeister reviewed what the article stated and the goals the Met Council 0 Regular Andover City Council Meeting Minutes - July 15, 2008 Page 7 1 will be trying to put on certain cities by 2020. Councilmember Jacobson did not know how this 2 could be accomplished with the way the housing market is and that they have not been building 3 many homes in the City. 4 5 (National Night Out Coordination) - Councilmember Knight wondered who is coordinating 6 National Night Out. Mr. Dickinson indicated Laura Landes will get the information out to the 7 City and he will disburse the information out to the Council. 8 9 (City Gambling Leases) - Mayor Gamache noticed they are approving a premises permit at 10 Moose & Co. for the Andover Football Association. He had a member of the Lions approach 11 him regarding the issues they had at Pov's and their gambling license. He wanted to get 12 clarification on this. Mr. Dickinson explained what was going on at Pov's in regard to the 13 gambling leases. Councilmember Trude thought they should be watching this a little more 14 closely and if someone terminated their lease early it would be a good idea to have both parties 15 sign the same paper so when the Council sees it they do not have these types of questions come 16 up. Mr. Dickinson stated they are going to implement some more oversight in that process. 17 Councilmember Trude did not know how they could approve one for a business that is not even 18 built yet and she wondered if they should be stricter and state that the business needs to be 019 operational. Mr. Dickinson thought there was a lot of competition out there to get one of these 20 organizations and the business owners want to put it to rest and indicate they have an agreement. 21 22 (Fun Fest) - Mayor Gamache thanked Chief Winkel for his foresight on Friday night before the 23 big storm came in. He also wanted to thank all the volunteers at Fun Fest. 24 25 26 Motion by Knight, Seconded by Jacobson, to adjourn. Motion carried unanimously. The meeting 27 adjourned at 8:16 p.m. 28 29 Respectfully submitted, 30 31 Susan Osbeck, Recording Secretary 0 0 Regular Andover City Council Meeting Minutes - July 15, 2008 Page 8 REGULAR ANDOVER CITY COUNCIL MEETING MINUTES - JULY 15,2008 TABLE OF CONTENTS PLEDGE OF ALLEGIANCE ......................................................................................................... 1 RESIDENT FORUM... ........ ............... .............................. .......................... ...... .......... ... ... .............. 1 AGENDA APPROV AL.................................................................................................................. 1 APPROV AL OF MIN1JTES ................... ........................... ....... ...... ....... .................. ............... ........ 1 CONSENT ITEMS ..................................................................:.......................................................2 Approval of Claims ....... ......... .... ............... ......................................... ....,...... ...... ....... ...... ... ... ............ 2 Approve Debt Service Payment. ......... ........... .............................. ................... ................ ............ 2 Resolution R060-08 considering Approval of Premises PermitIMoose & Co. Grillhouse/ Andover Football Association ... ........................... ..... ....... .................... ............... 2 RECEIVE ANOKA COUNTY SHERIFF DEPARTMENT MONTHLY REPORT..................... 2 DISCUSS AUTHORIZING STAFF TO NEGOTIATE BOND SALE.......................................... 2 DISCUSS ANDOVER STATION NORTH BALL FIELD FACILITY BUILDING FUND......... 3 APPROVE BID FOR PURCHASE, MOVING, & SITE CLEAN UP OF VACANT HOUSE/14905 CROSSTOWN BOULEVARD............................................................................. 4 0 COMMUNITY OUTREACH EVENT FOR FREEDOM CHRISTIAN CENTER ....................... 5 ADMINlSTRA TOR REPORT.......... ....... ....... .................................... .............................. ..... ........ 6 MAYOR/COUNCIL INPUT .......................................................................................................... 6 Recycling. ................................................................................................................................. .. 6 Sprinkling Bans........................................................................................................................... 6 Met Council Article. ............... ....... .... .................. .............................. ......... ....... ...... ..... .............. 6 National Night Out Coordination. ............................................... ......... ......... ........... ..... ... ........... 7 City Gambling Leases. ............ ...... .......................................... ...... ............ .... .......... ........... .... ..... 7 Fun Fest............................................................................................................................. .......... 7 ADJOURNMENT........................................................................................................................... 7 0 0; 3 4 5 6 ANDOVER CITY COUNCIL WORKSHOP - JULY 22,2008 7 MINUTES 8 9 10 The Andover City Council Workshop was called to order by Mayor Mike Gamache, July 22,2008, 11 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. 12 13 Councilmembers present: Don Jacobson, Mike Knight, Ken Ortte1 (arrived at 6:05 p.m.), 14 Julie Trude 15 Councilmember absent: None 16 Park Commissioners present: Chair Dan Masloski, Jeremy Boyer, Ted Butler, Bill Hupp, Tony 17 Kowalewski, Vice Chair Jim Lindahl, and Peggy Scott. 18 Park Commissioner absent: None 19 Also present: Director of Public Works/City Engineer, Dave Berkowitz 20 City Administrator, Jim Dickinson 21 Community Development Director, Will Neumeister 22 Assistant Public Works Director, Todd Haas ~~ Fire Chief, Dan Winkel Others 25 26 27 JOINT MEETING WITH PARK & RECREATION COMMISSION 28 29 a. Status of Skate Park (Existing & Proposed)/Hupp & Kowalewski 30 31 Chairperson Masloski thanked the Council for having a joint meeting with the Park Commission. 32 33 Commissioner Kowalewski reviewed the fund raising efforts for the Skate Park with the Council. 34 35 Councilmember Orttel arrived at 6:05 p.m. 36 37 Commissioner Hupp stated the top priority is to go after the larger businesses. He thought they 38 should offer up some type of a buy in, to name the park after a corporation for a certain amount 39 oftime or to go after a multi-faceted tier. He explained they would have to know right off the bat 40 if there are donators large enough to name a park after and the Commission would like to have 41 the Council's input in regard to this. 42 43 Commissioner Hupp wondered how the Council would want this structured. Mr. Dickinson d~ explained the City has different donation tiers for plaque, etc. 46 Mayor Gamache thought the first thing the Commission needed to do is to set a fundraising goal 47 to try to reach and then sit down with the different companies to indicate what different amounts 48 of money will get them for advertising. 0 Andover City Council Workshop Meeting Minutes - Jul)! 22, 2008 Page 2 1 2 Mr. Dickinson noted if the Commission were to go after grants they would need to be a 501(c) in 3 order to apply because cities cannot apply for certain grants. They can accept donations on 4 behalf of the Commission. 5 6 Councilmember Trude thought this is a good approach but the Commission should talk to staff 7 regarding the rules when collecting donations. 8 9 Commissioner Kowalewski thought there could be information put into a monthly flyer along 10 with how much they have received in donations and how far they are from reaching their goal. 11 They also thought by 2009 if they feel there is not enough funding they would have a plan b in 12 place. That plan would be to possibly sit down with the Anoka, Blaine and Coon Rapids City 13 Councils and Park and Recreation Board with Anoka County to see if they could go into a main 14 park and get sixty thousand from the other cities. 15 16 Councilmember Trude stated they tried that with the Community Center and she did not know if 17 that would work because each City is large enough to stand alone. She stated she was the Chair 18 of the Community Education Advisory Council and all the park directors from those ~~ communities are actively involved each month at those meetings and she cannot imagine them contributing. 21 22 Councilmember Knight wondered if they could go to Riverdale and make the rounds there for 23 donations because a lot of their clientele is from Andover. Commissioner Kowalewski stated he 24 talked to Mr. Haas to get a listing of all the businesses in the city so he could contact them for a 25 donation. 26 27 Commissioner Hupp indicated they are planning on prioritizing the businesses and work their 28 way down from the big box companies. Councilmember Trude stated what they learned while 29 fundraising for the Community Center was that the local businesses are hit up by every little 30 group that want some funds. She stated the little businesses in Andover are hit up so much that it 31 is hard for them to donate. She thought what they had in mind was a good idea. 32 33 Councilmember Jacobson stated his concern was naming the park after a donor corporation. 34 Councilmember Knight indicated they could give the business credit for their donation other than 35 naming the park after them. They could have signs, etc. for them. 36 37 Commissioner Kowalewski stated there have been minor issues with litter and graffiti but these 38 are not skateboard kids, they are other kids not involved in skateboarding and the kids who do 39 use the park seem to try to clean it up and try to have pride in the park. d~ Commissioner Hupp thought it was a lot of perception and the kids feel like they are part of the 42 group. 43 0 Andover City Council Workshop Meeting Minutes - July 22, 2008 Page 3 1 b. 2009 - 2013 Parks Capital Improvement Plan 2 3 Chairperson Masloski explained with the budget constraints and the economy they have pushed 4 all of their items out through 2010 to balance their budget. They are operating within the bare 5 minimum and most cities are operating between $750,000 and a million dollars in their park 6 reserve and Andover has $75,000. 7 8 Councilmember Trude stated based on the park study they have more capacity than residents. 9 Chairperson Masloski stated they are going to get to a point where some of the infrastructure they 10 have will need to be replaced. He stated that over a course of time they need to look at the long 11 term plan on their park reserve plans. Councilmember Trude stated there are things in the overall 12 budget and not the park budget that will cover some of the larger items. 13 14 Chairperson Masloski thought it is commendable that the Council stepped up and took over the 15 fmancing to fInish the baseball complex concession building. Commissioner Hupp thought that 16 was important and a big step for the Council to take since parks are usually run on park 17 dedication funds. The City is getting so big that it sometimes needs help from other resources. 18 q~ Mayor Gamache stated they have an estimated $139,700 as the anticipated park dedication fee from now until 2015. Mr. Dickinson indicated that is if they get fIfty platted units each year. 21 22 Councilmember Trude stated she has seen the Park Commission's role as dealing with issues of 23 growth in the parks and policy recommendations. The revenue/expense issues are with finance 24 and the Council. Every park that is added to the community is a burden on the tax side and they 25 have to be aware of what is happening with that. She does not like that when the commission is 26 talking on tv, people at home are getting confused by commission discussion. She does not want 27 there to be confusion about their role because if the community has a building with concessions 28 in it that is owned by the community and if they award a contract out on that it is really up to the 29 Council to allocate those revenues. Commissioner Hupp stated they have to discipline 30 themselves relative to cash flow or project savings. 31 32 Chairperson Masloski thought all government agencies are looking at ways to increase revenues 33 to offset expenditures. He stated that whatever the fees might be, politicians are there to try to 34 fIgure out how to pay for things. Knowing what their balance is and having people approach 35 them wondering where their park is and why it is not done. How are they going to pay for those 36 things and through that conversation the commission has come up with user fees, non-resident 37 fees, revenue streams corning from concession stands and advertising. He stated when they get 38 into user fees they need to make sure the Council understands what the Commission is talking 39 about. d~ The Council and Commission discussed past parks that took a while to develop and present parks 42 that need to be developed and what should be told to the residents asking for the parks to be built 43 in their neighborhoods. 44 0 Andover City Council Workshop Meeting Minutes - July 22, 2008 Page 4 1 Mayor Gamache stated there are large areas that have been developed for a number of years 2 where they do not have a neighborhood park and people have to walk a distance to one. He 3 stated the philosophy has been to use park dedication fees from the development of the new 4 homes you are a growing city and developing more your need for new parks will be there and 5 will have the money to take care of that but when there is a slow down there should not be need 6 for more parks. He thought they will probably see three to five years where their park dedication 7 fee will be reduced because of the fact that they are not platting new units. He thought they 8 needed to look more towards how they are going to maintain the parks they have and not toward 9 building new parks in developments that do not have them. 10 11 Councilmember Trude stated there was a whole philosophy shift about ten years ago, there were 12 not neighborhood parks, there were cluster regional community parks because the neighborhood 13 parks were too hard to maintain and now they have gone back to the neighborhood parks. 14 15 Chairperson Masloski stated there is no doubt within the last six years what they have done in the 16 city has taken a toll on the park reserve funds. 17 18 The Council and Commission discussed with staff the budget and how the Commission can work q~ within the budget they have. 21 Councilmember Jacobson indicated they may need to push items back until they get the money to 22 do the improvements to the parks. 23 24 Commissioner Kowalewski thought it was important to offer individual sports for residents 25 besides group sports. Some kids have a hard time bonding and making friends and do better 26 individually than in groups. 27 28 Councilmember Orttel thought they would want to have all of the money before they start 29 building a skate park. 30 31 c. Discuss Possibility of Non-Resident Fee for Use of City Facilities 32 33 Chairperson Masloski brought this back to see if there is any interest by the Council to charge a 34 fee to non-residents for use of the cities park facilities. He wanted to make sure the Council is 35 aware that this is the direction that other cities are going. Champlin has been doing this for 36 seventeen years successfully and there have not been any issues with charging those fees. 37 38 Councilmember Trude wondered if it impacted any city elections in Champlin. She knew there 39 was quite a bit of turnover in Champlin when they moved forward with the Community Center d~ project. Chairperson Masloski indicated the ice forum was a controversial issue. 42 Mayor Gamache asked what the difference was between usage and non-resident fees. 43 Chairperson Masloski explained how the two different fees worked. 44 0 Andover City Council Workshop Meeting Minutes - July 22, 2008 Page 5 1 Councilmember Jacobson asked how they would determine who is a resident. He thought 2 someone could get around the fees by having a resident of Andover come and reserve a pavilion 3 and the rest of the people at the event would be from outside of Andover so they would not have 4 to pay any non-resident fees. Chairperson Masloski stated in Champlin the resident who is 5 soliciting the opportunity to use a pavilion is getting charged the resident rate. He knows there 6 are people that go around this to avoid a fee. 7 8 Councilmember Trude stated as chair of the Anoka-Hennepin Community Education Advisory 9 Council all the communities that share facilities in the school district do not charge fees. She 10 stated she is concerned about this positive relationship they have built up over time being 11 severed. 12 13 Commissioner Butler stated there are a few reasons why they should not charge the fees. He 14 explained how Andover has residents in four different high schools. The associations in the city 15 also have children from other cities participate in them so he did not want to upset the 16 associations by charging these types of fees. 17 18 Commissioner Kowalewski stated the associations need to step up and help maintain the fields. q~ He suggested the individual associations allocate funds to the city for maintaining them. He also thought the schools need to allow the associations to use their fields. 21 22 Commissioner Butler sees this as opening the door to increasing fees and he did not want to see 23 the community go this way. He thought if Andover started to do this other cities would do it and 24 then they would be having their kids paying each others' park systems and he did not know how 25 much sense that made. 26 27 Councilmember Trude does not think it is a problem that should be addressed with money at this 28 level. There might be things that could happen at a higher level between communities to try to 29 solve the problem. 30 31 Chairperson Masloski stated from his standpoint he is putting it into a philosophy with the 32 Council. They are the ones that ultimately make the decision and have to feel comfortable with 33 it. 34 35 Commissioner Scott stated the associations are stepping up and donating money towards the field 36 maintenance. 37 38 Councilmember Trude stated Mr. Dickinson has worked out a joint powers agreement with the 39 school district to get some of their kids onto the fields. G~ d. Discuss Future of Irrigation of City Parks/Fields 42 43 Chairperson Masloski stated the Council is requested by the Park and Recreation Commission to 44 discuss the future of irrigating city parks/fields and what potential funding options are available 0 Andover City Council Workshop Meeting Minutes - July 22, 2008 Page 6 1 to do this. 2 3 Commissioner Butler reviewed the information with the Council. He wondered if it was possible 4 to recapture some or all of the funds saved with irrigation at Sunshine Park to irrigate other 5 fields. 6 7 Mayor Gamache stated what he would like to see done is to look at all the parks they currently 8 have irrigated that are on city water and the cost of moving all of those to wells. Then the cost of 9 irrigating the key parks. He thought it might be a good idea that some of the money could go 10 back into the fund to get to the next park so they can expand field use of the bad fields. He asked 11 what the budget ramifications would be. Mr. Dickinson stated they would have to index the 12 costs. He stated one concern in migrating out into parks that do not have irrigation systems is 13 they cannot commit one hundred percent of the dollars to continue to do irrigation improvements 14 because as grass grows, more maintenance is required. He stated their major focus is to alleviate 15 some of the issues. Where they see the immediate payback is in the urban areas, as they expand 16 to rural areas they know they will need other funding in order to do that. He stated to pull it out 17 of the operational budget is tough because they have initiated this conversion to cover some of 18 the inflationary parks maintenance expenses. 019 Commissioner Jim Lindahl left the meeting at 7:25 p.m. 20 21 22 Councilmember Orttel stated they have discussed using the savings to bond and he wondered if 23 that would be a solution. Mr. Dickinson explained what they need to do in order to bond for this 24 type of improvement. 25 26 Commissioner Hupp thought they have to focus on the urban areas but they cannot forget about 27 the rural parks. 28 29 . Mayor Gamache thought prioritizing fields makes sense. 30 31 e. Consider 2008 Fall Softball/Baseballl Football Schedule 32 33 Motion by Commissioner Butler, seconded by Commissioner Scott, to approve the 2008 Fall 34 softballlbaseballlfootball schedule. Motion carried on a six ayes, no nays, 1 absent (Lindahl). 35 36 The meeting adjourned at 7:31 p.m. 37 38 The City Council Workshop began at 7:38 pm. 39 d~ ASSESSMENT POLICY DISCUSSION 42 Mr. Berkowitz stated the City Council is requested to discuss current assessment policy items and 43 direct staff on how to proceed with updating the assessment manual. 44 0 Andover City Council Workshop Meeting Minutes - July 22, 2008 Page 7 1 Councilmember Jacobson asked if there was a reason why they need to look at this again because 2 they reviewed it last year. Mr. Berkowitz explained that it was a Council goal to review the 3 assessment policy. 4 5 Councilmember Orttel stated they do have significant costs that the city pays for on county roads. 6 Mr. Berkowitz stated they pay for a percentage of the storm sewer and a percentage of curb and 7 gutter. Councilmember Orttel stated there are a lot of negatives to the improvements on a county 8 road. He would prefer these be left up to the Council to decide since improvements are not always 9 the same. 10 11 Mr. Berkowitz reviewed item one with the Council. 12 13 Councilmember Trude thought this was the same thing as what other cities are doing with the per 14 frontage foot. If a property has a lot of land a higher assessment should be paid since the owner is 15 getting a lot more subsidized road along the property. Mr. Dickinson indicated that is not always 16 true. The property can be assessed but the question comes to if the assessment will be deferred. 17 18 Councilmember Orttel asked if they can post assess. Mr. Berkowitz stated it all has to be identified. 019 Mr. Dickinson stated they have to do a supplemental assessment and the costs have to be contained 20 within the original project amount. 21 22 The Council discussed agricultural property assessment with staff. 23 24 Councilmember Jacobson asked if there is anything in the current policy that the Council wants to 25 change. 26 27 Mr. Berkowitz reviewed item two with the Council. 28 29 The Council agreed that this should be a no. 30 31 Mr. Berkowitz reviewed item three with the Council. 32 33 The Council agreed item three should be left as is. 34 35 Mr. Berkowitz reviewed item four with the Council. 36 37 The Council thought staff should leave this at Council's discretion. 38 39 Mr. Berkowitz reviewed item five with the Council. o:~ Staff discussed some of the properties in the city and the time table in regard to green acres. 42 43 Councilmember Trude thought they should table this until they can have it looked. at better. 44 0 Andover City Council Workshop Meeting Minutes - July 22, 2008 Page 8 1 Mr. Winslow Holasek discussed his interpretation of green acres and assessments on them with the 2 Council and staff. 3 4 DISCUSS OAK WILT GRANT GUIDELINES 5 6 Mr. Berkowitz explained in 2007 the City received a grant for Oak Wilt treatment in the amount of 7 $25,000 from the Minnesota Department of Natural. Resources (DNR), Division of Forestry. To 8 date, the City has used approximately $9,000 of that money. The City has until December 2008 to 9 use the remaining funds for contractual services. The state does allow grantees (the City of Andover) 10 to be reimbursed for staff time. The City has not yet requested reimbursement for this. 11 12 Motion by Jacobson, seconded by Knight, to allow staff to reimburse property owners for 13 treatment and tree removal of Oak Wilt up to the cap limits. Motion withdrawn. 14 15 Mayor Gamache stated he would like them to spend the $25,000 to residents to eradicate the 16 problem and not be as concerned about collecting money for staff time. 17 18 The Council discussed with staff what they would like to see the money go for and they 019 discussed what the cap would be. 20 21 2009 BUDGET DEVELOPMENT & 2009-2013 CIP DEVELOPMENT PROGRESS REPORT 22 23 Mr. Dickinson reviewed the 2009 Budget progress report with the CounciL He explained he would 24 recommend levying to the state imposed max this year because they do not know what future years 25 will be. He stated if they do not use the levy limit capacity they will be penalized next year. He 26 stated the issue is a three year levy limit and 2010 will probably be a worse year as far as market 27 value perspective and they are currently looking at zero market value growth for 2009. He thought 28 the levy limit increase would be a 4.9% increase to the gross levy. Levy dollars that are within levy 29 limits are general fund levy, capital project levy, parks projects, road and bridge levy, pedestrian trail 30 maintenance and their contribution to the Lower Rum River Watershed District. He stated those 31 items within the levy limits will be subject to the 4.9%. Outside of the levy limits are debt service 32 commitments. 33 34 Mr. Dickinson thought based on the comparisons with other cities in the Metropolitan area Andover 35 is much better than many of the others. He stated normally he would recommend following the 36 Council imposed guideline, but this year he thought they should levy to the max. Councilmember 37 Jacobson asked about decertifying the TIF Districts early. Mr. Dickinson stated there are a couple of 38 reasons why they may not want to be decertified early because that is dependent onthe Bruggeman 39 development. If the Bruggeman note gets paid off in 2010 they will have enough money to pay O~ everything off at that time. If it does not get paid off they may need one or two more years tax increment to cover that note. 42 43 Councilmember Trude thought it would be good to take more time at a workshop to talk about some 44 of the TIF issues and how they tie into everything else. Mr. Dickinson indicated they did not need to 0 Andover City Council Workshop Meeting Minutes - July 22, 2008 . Page 9 1 make a decision on decertification for the 2009 budget, but this is something they should watch. 2 3 Mayor Gamache asked if they went to the maximum of 4.9% this year and then things turn around 4 and get better in 2010, would they be able to pull back. Mr. Dickinson stated they could. There are 5 some other options they could look at within the Legislation if they get into too much ofajam. He 6 knew the Council wanted to be conscientious about how much the taxes are. Mr. Dickinson 7 indicated there are some expense increases that will exceed inflation. Fire Department wages and 8 benefits and wages and benefits associated with the law enforcement contract. They could pull those 9 outside oflevy limits and apply for the exemption, but they do not need to apply for them this year. 10 If they decide to do it next year they have the latitude to do so. 11 12 Councilmember Trude thought in two years if building picks up they are kind of short on city staff. 13 They have retrenched and not filled those positions. What if their community starts to grow, there is 14 a two year tax lay before they get the money off the new homes from development and they could 15 end up in that type of situation. Mr. Dickinson stated on page three, second paragraph down, in 16 preparing the budget, the general fund balance is at 37.5% and the budget guidelines say 35%, they 17 want to create a reserve over and above what they feel is the minimum to cover those situations 18 where they would need to hire staff, they would be able to address that mid year. Worst case 019 scenario if they cannot balance the budget he could go back and take the 2.5% out in order to balance 20 the budget. 21 22 Mr. Dickinson reviewed other budget changes, proposed salary rate increases and the proposed 23 health insurance budget for 2009 with the Council. He expected the health insurance increase to be 24 lower than the proposal he was given by the broker. 25 26 Councilmember Trude asked how people are feeling about the Health Savings Accounts. Mr. 27 Dickinson stated he loved it and so did Mr. Neumeister. Mr. Dickinson stated based on their 28 statistics they had total fewer claims but some high dollar payouts. He noted that the City has also 29 contributed a portion of the savings at the beginning of this year to all the H.S.A. funds instead of 30 having to pay the higher premiums. 31 32 Councilmember Trude thought at some point it would be a good idea to get an informal survey of 33 how the employees feel about the current insurance coverage. 34 35 Councilmember Trude thought staff should survey other cities to see what they are doing for Council 36 salaries and increases. 37 38 CAPITAL IMPROVEMENT PLAN 39 O~ Mr. Dickinson stated in early April, AdministrationIFinance started the 2009-2013 CIP process with a meeting with department heads. Discussion in April centered on the 2009-2013 CIP development 42 calendar and the need for other committees and commissions to start their work. 43 44 During the June CIP progress report to the Council, staff sought the Councils first review of the 0 Andover City Council Workshop Meeting Minutes - July 22, 2008 Page 10 1 projects and equipment proposed. Council direction was also sought on whether or not the Council's 2 priorities were being met with the current 2009-2013 CIP. Staffhas taken the comments from that 3 meeting and incorporated them into the July progress report for the 2009-2013 CIP. 4 5 Mr. Dickinson reviewed the Capital Improvement Plan update with the Council. 6 7 Councilmember Jacobson stated while looking at the list he noticed a replacement for Fire Engine # 1 8 and thought the cost was very high. Councilmember Trude noted this was a two year expenditure. 9 Councilmember Jacobson wondered if Chief Winkel ever looked at a rebuild versus new. Chief 10 Winkel indicated he could look into this but sometimes a rebuild is not what is needed. He stated the 11 engines have a lot of time put on them, not necessarily mileage but working time and rebuilds are not 12 always the answer. 13 14 Mayor Gamache asked if they are going to get rid of the Taurus. They are looking at other types of 15 vehicles such as the Toyota Prius. Mr. Dickinson stated they will be looking for something more 16 fuel efficient, not necessarily a hybrid. 17 18 Councilmember Trude wondered if they could put acoustical tiles in the Council Chambers for sound 019 improvement. Mr. Dickinson reviewed with the Council the possibility of using the funds they have 20 at QCTV for a new acoustical system in the Council Chambers. He noted they have over $25,000 21 saved up in their QCTV account, which could be used for this. 22 23 CITY OF ANOKA COMPREHENSIVE PLAN UPDATE 24 25 Mr. Neumeister reviewed the Anoka Comprehensive Plan Update with the Council. 26 27 The Council thought staff should discuss with Anoka possible connections to their proposed transit 28 hub. 29 30 CITY OF HAM LAKE COMPREHENSIVE PLAN UPDATE 31 32 Mr. Neumeister reviewed the Ham Lake Comprehensive Plan Update with the Council. 33 34 The Council did not have any comments. 35 36 OTHER BUSINESS 37 38 . Crooked Lake Association 39 d~ Mr. Berkowitz explained the Crooked Lake Association is requesting Andover budget $3,000 in 2009 to assist them with water quality. Mr. Berkowitz stated staffhas discussed this and would 42 .recommend they request from them what their Capital Improvement Plan is. They are working 43 with the Coon Creek Watershed District right now to determine what water quality 44 improvements they can make. 0 Andover City Council Workshop Meeting Minutes - July 22, 2008 Page 11 1 2 Councilmember Trude indicated the Watershed District has a levy authority and they do not have 3 any limits on them by the State. Mr. Berkowitz stated it is indicated they will contribute either 4 in-kind services or some dollars to assist. 5 6 Councilmember Jacobson thought they should fmd out what Coon Rapids will be contributing 7 because they have two-thirds of the lake. Councilmember Orttel wondered why this would not 8 be handled through the DNR. Mr. Berkowitz indicated the DNR is listed as a contributor. He 9 stated the Coon Creek Watershed has taken the lead on this and put together a plan for non- 10 degradation and to improve water quality. They have been working on it for the past eight 11 months. 12 13 Councilmember Trude recommended they ask for them to levy for it because it is the watershed 14 that will benefit from it, not just the lake homes. Councilmember Orttel thought the association 15 did get a fair amount of revenue from the lake homes and the City has participated in this before. 16 Councilmember Jacobson thought they should give the City a plan on what is going to be done 17 along with the costs and share allocations. 18 019 . Parking Lot at Sunshine Park 20 21 Mr. Berkowitz noted in the area where the house will be moved. They have hauled dirt in for 22 free and once the house is moved out they can top it off with class 5 and use it for overflow 23 parking in there until they have funds to pave it. 24 25 . Identifying Areas as Low Maintenance Areas in Parks 26 27 Mr. Berkowitz indicated they will be working with Kevin Starr in the next few months 28 identifying areas that they can classify as low maintenance areas in parks to try to reduce the 29 amount of mowing. 30 31 Survey from Erik and Toni Kohnke 32 33 Mr. Dickinson stated the Kohnkes are working on a plan for an addition on their home. He 34 showed the Council a survey of the property. He stated one of the issues for the Kohnkes to go 35 forward is the need to have the addition to the size they want and in the location they want. The 36 issue is the distance of the side yard setback for the addition is 37.6 feet and 34.2 feet and the 37 side yard setback is 40. 38 39 Mr. Dickinson indicated this is more complicated than a side yard variance; he has a non- 040 conforming structure. Mr. Berkowitz stated Mr. Kohnke does not meet the setback and the ~1 second issue is the low floor is below the back to back hundred year flood zone. Both stated the 42 existing structure is grandfathered in and while the existing structure is non-conforming, the 43 addition is what would be in question. 44 0 Andover City Council Workshop Meeting Minutes - July 22, 2008 Page 12 1 Councilmember Trude wondered if Mr. Kohnke met the one foot above hundred year flood zone. 2 Mr. Berkowitz believed he had to go up three feet to meet the current standards on the addition. 3 4 Mr. Dickinson stated Mr. Kohnke does not want to invest more in this proposal until he has 5 gotten a general idea of what the Council may think. Council consensus is that Mr. Kohnke 6 should come in and go through the variance process. 7 8 Mr. Dickinson stated he could indicate to Mr. Kohnke that this was reviewed and it appeared that 9 a variance request would be a reasonable request. 10 11 12 Motion by Jacobson, Seconded by Gamache, to adj?urn. Motion carried unanimously. The meeting 13 adjourned at 9:45 p.m. 14 15 Respectfully submitted, 16 17 Susan Osbeck, Recording Secretary 0 0 (1) 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers CC: Jim Dickinson, City Administrator / Finance Director FROM: Lee Brezinka, Assistant Finance Director SUBJECT: Payment of Claims DATE: August 6, 2008 INTRODUCTION Attached are disbursement edit lists for claims related to the on going business of the City of An~over. DISCUSSION Claims totaling $274,023.01 on disbursement edit lists #1 - 4 from 07/18/08 to 07/31/08 have been issued and released. 0 Claims totaling $585,518.88 on disbursement edit list #5 dated 08/06/08 will be issued and released upon approval. BUDGET IMPACT The edit lists consist of routine payments with expenses being charged to various department budgets and projects. 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E:~~~-a Q) Q) ~ .S: -e-a -=.0 - t~o ~i3i3i3~ U 8 0 C. ;>Q)E-< ... ;::I '-' 'C O;>~ -=888~ t8Z ..... '" C,/ 00<0 g .9-.9-.9- U e;c; ;::j '" ~ g..s~ ~ 50 50 5o~ ..... ..... ..... o 0 Cl N.....U E-<>ol>ol>olU E-<E-< 0 e p., ~ 0 0 Il) -= t U -= ... 0 <I) Q Ml"') ~ S Z c. "'*' "'*' E-<ooo 8 ~ ..... .... C,/ s:: s:: ~~~('1'") 0 'S Q) Q) 00'10'10'1 U 8 8 "='0'10'10'1 I ;> ~~ =------- = Q)E-<E-<E-< ~ .... p.,p., >>ol>ol>ol @ ~O 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER. MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . W .CI.ANDOVER.MN.US .- TO: Mayor and Councilmembers CC: Jim Dickinson, City Administrator FROM: Dana Peitso, Human Resources Manager SUBJECT: Approve Dental Renewal and Employer Contribution DATE: August 06, 2008 INTRODUCTION The current City of Andover sponsored employee dental policy contract term expires August 31, 2008. The Human Resources Department has worked with the City's broker Johnson McCann to seek either a contract renewal with the current providers or marketing to other insurance providers to provide a quality, yet affordable employee dental insurance plan. The resulting recommendation is provided below. DISCUSSION The employee dental plan proposed is with Delta Dental designed to offer comprehensive benefits within :J a competitive cost framework. Renewal rates are as listed: Current Renewal Rate Rate (5 % increase) Single $33.85 $35.70 Single + 1 $72.30 $76.30 Family $102.90 $108.55 Based on the renewal, Human Resources is recommending that the City Council continue covering 100% of a single dental premium and increase the City's contribution to $36.00 per month employer contribution to a family premium. BUDGET IMPACT The proposed mid year 2008 employer contribution increases, based on current group make up would yield an $240.00 increase in costs through December 31,2008. The funding for the increase would be provided for by 2008 contingency budgets. Appropriate modifications for the increased contributions will be factored into the proposed 2009 budget. ACTION REQUIRED The Andover City Council is requested to approve the Delta Dental insurance proposal. The Council is requested to approve the employer contribution increase by covering 100% of a single dental premium and increase the City's contribution to $36.00 per month employer contribution to a family premium Respectfully submitted, 0 ~~~ Dana Peitso @ JO 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER; MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and City Council CC: Jim Dickinson, City Administrator FROM: Michelle Hartner, Deputy City Clerk SUBJECT: Approve On-Sale 3.2% Malt Liquor License/Tasty Pizza DATE: August 6, 2008 INTRODUCTION Tasty Pizza, 13827 Round Lake Boulevard NW, has been sold and the new owners have applied for an On-Sale 3.2% Malt Liquor License. ;:;; DISCUSSION Lane and Jennifer Gilliland, new owners of Tasty Pizza have applied for an On-Sale 3.2% Malt Liquor License and paid the appropriate fee. ACTION REQUIRED The City Council is requested to approve the above license for the period of August 7, 2008 through December 31,2008. Respectfully submitted, Michelle Hartner Deputy City Clerk Attach: License Application Sheriff's Office Background Investigation 0 JO C I T Y o F NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US COMBINATION APPLICATION FOR RETAILERS (ON-SALE) (OFF-SALE) 3.2 % MAL T LIQUOR LICENSE To the City of Andover, County of Anoka. I, f...an.p..- G / tt/lflhd , of the City of -AhCioUfJ/ , County of fJn(]kc{ hereby make application for the following Iicense(s): (Off-Sale) (On-Sale) established pursuant to an Ordinance passed by the Andover City Council. For the past five years my residence has been as follows: 1'13% QuJy-(1~/ >ft. N W f)rd(J UkY 0 I was born_____ at Sf, Paul. ItA) (month, day, year) (City, Village, or Town) I am the p(~CJmf of 7Z6ft-# P/ ZZtL * '-II(G IfI)(I~ (Title, Officer) (NljIme of Organization) located at the following address 13~1 ~urd ~ Blvd The date the organization was incorporated The name and address of the officers are as follows: l{}~ Gt ~t4 C(tlh c1 Pri!KJ-(jpr-.f I ~~. (]OhM ,:fj;y- Gi ~t{J( Ltih d tip. (Ir..e.S Name of Business: ~a5?1y PizZl:{'y ifK6 Jv,C- . Business Address: 13~C) 7 RfJurc/ LtiJ:Q BW I1rdDt.J1Jr' Store Manager: ~ G, ~tli 'tarcI 0 Store Phone Number: Lw3 - 'I:;)./~ 3P13 C:\Documents and Settings\ScottA.CITY_HALL\Local Settings\Temporary Internet Files\OLKI5D\3.2% Malt Liquor.doc J 0 I agree, as part of this application, to furnish a list of all other persons, firms, or corporations having an interest in the licensed organization. I will notify the City of Andover of any change in legal ownership or beneficial interest in such organization. I am_ am not.L. engaged in the retail sale of intoxicating liquor. I have have not X., had an application for licenses rejected previously. I have_ have not~ been convicted of a felony or of violating any national or state liquor law or local orarnarlce relating to the manufacture, sale or transportation of intoxicating liquor. Gambling or gambling devices will not be permitted on the licensed premises. I have,no intention or agreement to transfer this license to another person. I agree to waive my constitutional rights against search and seizure and will freely permit peace officers to inspect my premises and agree to the forfeiture of my license if found to have violated the provisions of the ordinance providing for the granting of this license. I hereby solemnly swear that the foregoing statements are true and correct to the best of my knowledge. ,'~. _? ,. .~~~".~~::;::;::::.=~:~----------, :;:> . <--;:::::;;;::>'. .;;.__-.....--.. 7-/ l./ - u8 ... ",/_,,>'~APPlicant . . Date ~..r. ~ License Fees: aq Temporary: $25.00 (3 day max.) Receipt # -, +7 Off-Sale 3.2% Malt Liquor: $75.00 On-Sale 3.2% Malt Liquor: $200.0~ Action by City Council: Approved Denied Date: License # o C:\Documents and Settings\ScottA.CITY_HALL\Local Settings\Ternporary Internet Files\OLKI5D\3.2% Malt Liquor.doc )0 Office of the Sheriff Anoka County Sheriff Bruce Andersohn 325 East Main Street, Anoka, MN 55303-5038 (763)323-5000 Fax (763)422-7503 July 15, 2008 Michelle Hartner City of Andover 1685 Crosstown Blvd N.W. Andover, MN 55304 RE: Combination Application for Retailers (On-Sale) (Off-Sale) 3.1% Malt Liquor License, Tasty Pizza 4KG Inc Dear Ms. Hartner: I received the attached Combination Application for Retailers (On-Sale) (Off-Sale) Malt Liquor License regarding the above. As you requested, a criminal background investigation was conducted on the following individual(s): :;J 1. Lane David Gilliland-_ Certification by the Anoka County Sheriff's Office This is to certify that to the best of my knowledge the above-named individual has not been convicted within the past five years of any violation oflaws ofthe State of Minnesota, or Municipal Ordinances relating to the sale of non-intoxicating malt liquor or intoxicating liquors except as herein stated: None within our jurisdiction. In the event it is determined that a criminal background search is needed on other associates of the business entity, please provide me with the individual's complete name (first, middle, and last names), along with his/her date of birth. Please note that the above-named individuals may have other-reported incidents that do not include the sale of non-intoxicating malt liquor or intoxicating liquors. S~R Bruce dersohn Sheriff psI 0 Affirmative Employer CERTlACA TE OF LlABIUTY INSURANCE )0 American Family Insurance Company 0 American Family Muluallnsurance Company if selection box is not checked. 6000 American Pky Madison, Wisconsin 53783-0001 Insured's Name and Address Agent's Name. Address and Phone Number (Agt./Dist.) 4KG Inc. Marci Hawkins (763) 427-4055 DBA! Tasty Pizza 1573 154th Ave. NW, Suite 103 13827 Round Lake Blvd. NW Andover, MN 55304-2681 (056/074) Andover, MN 55304 This certificate is issued as a matter of information only and confers no rights upon the certificate Holder. This certificate does not amend, extend or aller the coverage afforded by the policies listed below. COVERAGES . ThiS is 10 certify that poliCies 01 Insurance listed below have been Issued to lI1e insured named _ for the pallcy period indicated, nOI....;lI1slanding any requirement, term or condidon 01 any cenlrad or oll1er documenl with fespec:t to which this cer1llfcate may be issued or may pertain. the Insurance _ tly lIle policies described herein is subject to allll1e tenns, elCduslons, and condiUons of such policies. PnIIr.:V n4T~ TYPE OF INSURANCE POLICY NUMBER ~&~" r~IS:JI~~ LIMITS OF LIABILITY Homeowners! Bodily Injury and Property Damage Mobllehomeowners Liability Each OcculTBnce $ .000 Boatowners Liability Bodily Injury anel Property Damage - Each Occurrence S .000 Personal Umbrella Liability Bodily Injury and Property Damage Each Occurrence $ ,000 Ferm Liability & Personal Uebllity FarmlRanch Liability Each Occurrence $ ,000 Farm Employers Liability EaCh Occurrence S 000 Workers Compensation and Statutory ...tt******** Employers Liability t Each AccicIent $ .000 Disease - Each Employee $ ,000 DiSeess - Policy Limit $ ,000 General Liability General Aggregate S 000 CJ 0 Commercial General Products - Completed Operations Amr"".te $ .000 Liability (occurrence) Personal end Aclvertisina Ini"N $ nno 0 Each Occurrence $ ,000 0 Damaoe to Premises Rented to You $ 000 Medical Expense (Any One Person) $ 000 Businessowners Liability Each Cccurrencet t S 1 ,aDO ,000 22XD791201 7/14/2008 7/14/2009 Aggregalett $ 2,000 .000 Liquor Liability Corrmon Cause Limit $ .000 Aggregate Limit $ ,000 Automobile Liability Bodily Injury. Each Person S ,000 o Any Auto 80ddy Iniury - Eech Accldenl $ .000 o All Owned Autos o Scheduled Autos Property Damage $ .000 - o Hired Auto o Nonowned Autos Bodily Injury and Property Damage Combined S 0 ,000 Excess Liability o Commercial Blanket Excess Each OccurrencefAggregale $ .000 0 Other (Miscellaneous Coverages) DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES I RESTRICTIONS I SPECIAL ITEMS t The individual or partners shown as insured 0 Have 0 Heve nO! elected to be covered as employees under thiS policy. t t Products-Compleled Operelions aggregate is equal to eacn _url'eflCB limit and Is Included In policy aggregate. CERTIFICATE HOLDER'S NAME AND ADDRESS CANCELLATION . CITY OF ANDOVER .00 Should any of the above described WOlicies be cancelled before the expiration date thereof. the company' wi I endeavor to mail"( 30 days) 1685 Crosstown Bivd. NW written notice to the Certificate HolCler named. but failure to mail such notice shall impose no obligation or liabili~ of any kind uPQn the Andover, MN 55304 co:y. its agents or representatives. * 0 days unless different nu Of days shown. o This certifies coverage on the date of issue only. The above 0 descli:>ed policies are subject to ~~ellalion in conformity wilh their 1ermS and by the laws of the state of i sue. I CIA TE ISSUED I A7/~REserrAT7 / 7/15/2008 --- I w U.201 Ed. 5/00 Certificate Ho~ / Stock No. 06668 Rev. 7/02 '1 "d '1Savl.avE:Sl. ----- ....------- --- eoue~nsuI ~t~we~ ueo~~ewl::J dsv:ao 80 S'1 tnr @ 0 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 CC: Jim Dickinson, City Administrato FROM: David D. Berkowitz, Director of Public Works/City Engineer SUBJECT: Approve Hold Harmless & Easement Encroachment Agreement/Lt. 15, Blk. 3/W oodland Crossings - Engineering DATE: August 6, 2008 INTRODUCTION The City Council is requested to approve the hold harmless and easement encroachment 0 agreement with Woodland Crossings Townhome Association for Lot 15, Block 3, Woodland Crossings. DISCUSSION The Woodland Crossings Townhome Association would like to maintain the boulevards within the association's property with irrigation so that the area has a consistent aesthetic look for all the units. This requires irrigation to be placed within the City right-of-way adjacent to Lot 15, Block 3 and also requires a connection that is bored under the roadway of 157th A venue. Attached is the hold harmless and easement encroachment agreement with a detailed drawing showing the plan. As additional units are completed, irrigation will be extended to cover most of the right-of-way throughout the townhome development. ACTION REQUIRED The City Council is requested to approve the hold harmless and easement encroachment agreement for Lot 15, Block 3, Woodland Crossings. Respectfully submitted, ~. David D. Berkowitz Attachments: Hold Harmless & Easement Encroachment Agreement 0 cc: Pamela Westlund, Woodland Crossings Townhome Association, Inc., 13632 VanBuren Street NE, Ham Lake, MN 55304 HOLD HARMLESS AGREEMENT 0 AND EASEMENT ENCROACHMENT AGREEMENT THIS AGREEMENT, made this 6th day of August, 2008, by and between Woodland Crossings Townhome Association, Inc., owner of said property noted below and the City of Andover, a Minnesota Municipal CorpOration (hereinafter "City"). WHEREAS, Woodland Crossings Townhome Association, Inc., is the fee owner of PIN # 15-32-24-44-0018, Lot 15 Block 3, Woodland Crossings, Andover, Anoka County, Minnesota; and WHEREAS, Roadway Right-of-Way exists adjacent to the property and drainage and utility easements exist throughout the property; and WHEREAS, Woodland Crossings Townhome Association, Inc., understands that a irrigation system (hereinafter "improvements") 'lNi1l encroach into said right-of-way and drainage and utility easements (see Exhibit A); WHEREAS, Woodland Crossings Townhome Association, Inc., agree to construct the improvements as identified in Exhibit A; WHEREAS, the City is ~lIing to acknowledge and agree to an encroachment of the right-of-way and drainage and utility easements for said improvements assuming 0 certain conditions are met; WHEREAS, Woodland Crossings Townhome Association, Inc., is aware the area is for road right-of-way and drainage and utility purposes and acknowledges that access, maintenance, repair anellor replacement may be required in said right-of-way and easements as a result of such improvements; NOW, THEREFORE, in consideration of the foregoing and the City's consent and approval to the encroachment onto the right-of-way and drainage and utility . easements, Woodland Crossings Townhome Association, Inc., hereby agrees to hold the City hannless and indemnify'the City from any and all liabilities, and defend against lawsuits, expenses, damages, acts or failures to act, attorney's fees and court costs, which may arise as a result of WOOdland Crossings Townhome Association, Inc. or their successors in interest constructing and maintaining said improvements upon the right- of-way and utility easements of the City. Furthennore,. the Woodland Crossings Townhome Association, Inc. will. be responsible for any and all damage or failure to City Infrastructure due to such improvements and the City not be held responsible for any damage to said improvements constructed on the City's right-of-way and easements if 0 they are damaged or destroyed as a result of the City exercising its rights to access, excavate, repair, construct or maintain any pubUc improvem nts within said easements. The City may require evidence of insurance from Woodland Crossings Townhome 0 Association, Inc. to coverth indemnification required herein. IN WITNESS WHEREOF, the parties have hereunto set their hands this day of August 2008. CITY OF ANDOVER, a Municipal Corporation By: Its: Deputy City Clerk Pamel S Westlund, President Woodland Crossings Townhome Association STATE OF MINNESOTA ) ) ss. 0 COUNTY OF ANOKA } On ttils day of August, 2008, before me, a notary public within and for said county, personally appeared for Michelle Hartner and Michael R. Gamache to me known to be respectively the Deputy City Clerk and Mayor of the City of Andover, and who executed the foregoing instrument and acknowledge that they executed the same on behalf of said City. Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF ANOKA ) On this fib day of August, 2008, before me, a notary public within and for said county, personally appeared for Pamela S WestI , President Woodland Crossings Townhome ASsociation, Inc. This'instrument was drafted.by: City of Andover e STACYLWNO 1685 Crosstown Blvd. NW . .' f<<JTARY PUBlIC - MINNESOTA Andover. MN 55304 ;' '. . IIr COMMISSION EXPIRES l-al. 0 This Instrum nt Is exempt from registration tax and recording fees under Section 386.77 of the Minnesota statutes. ,-. Jd! 1 tl v "~ ...... __ I \ q: o~ ':) E';\: v . C'/ .. __ u' .""', ....'T... " <( .- ""''' '" ~ ffi ~ . .V- -- J 5)1...0 ,\3"V ~l >00::: .~ 'l3 ~ OZ "j" . _..~ I ,.... 0<(C'/. ~ __~'1..._M It !':t. Z t") lI"lO,Ill>.- ,_____..... <( IJ.. . --l:L'Ll~l / __......._ lfl .~ ~r 01- _ ... _ \! ES ~ "hi .. $,1-. ~1 -"I 1.0 .1 7 Iii.. .. ~t) >-z..... I-I 0 1-::> . 0 lh -00 "" ~ Uu 1lI ill 0::> 1.1& ,t.9 (f) Ii > !<:1 if! ~ jjj " . ii <'< .&1 J:;J t 0 ...... !t ill => .fi; ~ ~.", a: ..... i- ,,!g "1 I".. !i! G a:> -- .....- ~ ..:mB.I!L_ -~- I N I I " , ..- I , ~ L. _!f!D' ___ F.eI.. ,.. ----- uo- 0 I I I I I"") Q 1I c.o , r " 0 r 1- 5 '-- -- ~ r--.....- a ~I LO . I i. i~ - at e-: -- j! .. ~ I ~I ! I 0>", .!i!'.I. !~ I ..u... -- "0 ...; ..- U" n ~l ,;~ J 01 0 -5 Ii. Q Q , . I 0 I ~ - ~ 0::: I <( I 0... I ..- I II , I - I i '-- - I ~'" - I ~,T' - w.. "IE "1 .. 'OIlS ....----........ JIIMIII"'I ~ 10 .MJ.IDIIO 1INlI'DS .. JO .. .... fr'\ 0 I 3f)~ 3lV~~lHet~ @ o 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 ~ CC: Jim Dickinson, City Administrator <::::sr :ti::>b David Berkowitz, Director of Public Works/City Engineer FROM: Kameron Kytonen, Natural Resources Technician SUBJECT: Approve Hold Harmless and Easement Encroachment Agreementl14520 Jay . Street NW - Engineering DATE: August 6, 2008 INTRODUCTION The City Council is requested to authorize the approval of a hold harmless and easement o encroachment agreement with Shawn and Lisa Norbeck, property owners at 14520 Jay Street NW. DISCUSSION The property owners (Shawn and Lisa Norbeck) have an existing privacy fence on the property, which encroaches into a drainage and utility easement on the west side of the property. Typically fences are not allowed in such easements due to access requirements and maintenance needs by the City. Staff has reviewed the proposal closely, and has determined that general maintenance can still be achieved. By entering into this hold harmless and easement encroachment agreement the property owner agrees to cover all expenses due to damage and/or removal of improvements (fence) that are within the easement. ACTION REQUIRED The City Council is requested to approve the hold harmless and easement encroachment agreement with Shawn and Lisa Norbeck, property owners at 14520 Jay Street NW. ~ ctfully Sr ameron Kytonen~ Natural Resources Technician o Attachments: Hold Harmless and Easement Encroachment Agreement ./ Cc: Shawn and Lisa Norbeck, 14520 Jay Street NW, Andover 0 HOLD HARMLESS AGREEMENT AND EASEMENT ENCROACHMENT AGREEMENT THIS AGREEMENT, made this 6th day of August, 2008, by and between Shawn and Lisa Norbeck, owners of said property noted below, and the City of Andover, a Minnesota Municipal Corporation (hereinafter "City"). WHEREAS, Shawn and Lisa Norbeck is the fee owner of 14520 Jay Street NW (Lot 24, Block 4, Pinewood Estates Second Addition, PIN 27 32 24140067), Andover, Anoka County, Minnesota; and WHEREAS, drainage and utility easements exist throughout the property; and WHEREAS, Shawn and Lisa Norbeck understand that a fence (hereinafter "improvements") will encroach into said drainage and utility easements; WHEREAS, the City is willing to acknowledge and agree to an encroachment of the drainage and utility easements for said improvements assuming certain conditions are met; and 0 WHEREAS, Shawn and Lisa Norbeck is aware the area is for drainage and utility purposes and has buried utilities within the easements and acknowledges that access may be required in said easements resulting in removal of the improvements. NOW, THEREFORE, in consideration of the foregoing and the City's consent and approval to the encroachment onto the drainage and utility easements Shawn and Lisa Norbeck hereby agree to hold the City harmless and indemnify the City from any and all liabilities, and defend against lawsuits, expenses, damages, acts or failures to act, attorney's fees and court costs, which may arise as a result of Shawn and Lisa Norbeck or their successors in interest Constructing and maintaining said improvements upon the utility easements of the City. Furthermore, the City not be held responsible for any damage to said improvements constructed on the City's easements if they are damaged or destroyed as a result of the City exercising its rights to access, excavate, repair, construct or maintain any public improvements within said easements. City may require evidence of insurance from Shawn and 0 Lisa Norbeck to cover the indemnification required herein. C:\Users\Shawn\AppData\Local\Microsoft\Windows\Ternporary Internet Files\Low\Content.IE5\PDDXD1 RO\easementEncroachNorbeck[1].doc IN WITNESS WHEREOF, the parties have hereunto set their hands this Q day of August, 2008. CITY OF ANDOVER, a Municipal Corporation By: Its: Deputy City Clerk By: /J Its: __ ~or ~? ~ -. ~ Shawn Norbeck , !/iLJ1 () /kJijzjL Lisa Norbeck STATE OF MINNESOTA ) ) ss. COUNTY OF ) On this day of August, 2008, before me, a notary public within 0 and for said county, personally appeared for Michelle Hartner and Michael R. Gamache to me known to be respectively the Deputy City Clerk and Mayor of the City of Andover, and who executed the foregoing instrument and acknowledge that they executed the same on behalf of said City. Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF ) Onthis 2 9~ day of July, 2008, before me, a notary public within and for said county, personally appeared for Shawn and Lisa Norbeck. -N~~~ DRAFTED BY: . City of Andover I DANA LYNN PEITSOI 1685 Crosstown Blvd. NW NOTARY PUBlIC-MINNESOTA Andover, MN 55304 My CommlsIIolI Explrea Jan. 31. 2011 0 Sl....!4..;~-..M :ft.~!\,~~4Jr:.......w..."...N:."""~-~. This instrument is exempt from registration tax and recording fees under Section 386.77 of the Minnesota statutes. C:\Users\Shawn\AppData\Local\Microsoft\Windows\Temporary Internet Files\Low\Content.IE5\PDDXD1 RO\easernentEncroachNorbeck[1].doc 0 (]) C I T Y 0 F NDOVE 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 ~ CC: Jim Dickinson, City Administrator'; . David Berkowitz, Director of Public W orks/City Enginee~ FROM: Kameron Kytonen, Natural Resources Technician SUBJECT: Approve Hold Harmless and Easement Encroachment Agreement/2410 151st Avenue NW - Engineering DATE: August 6, 2008 INTRODUCTION The City Council is requested to authorize the approval of a hold harmless and easement 0 encroachment agreement with Joseph and Amanda Churchich, property owners at 2410 151 st Avenue NW. DISCUSSION The property owners (Joseph and Amanda Churchich) would like to put up a retaining wall and chain link fence on the property (Exhibit C), which encroaches into a drainage and utility easement on the west side of the property. Typically retaining walls and fences are not allowed in such easements due to access requirements and maintenance needs by the City. Staff has reviewed the proposal closely, and has determined that general maintenance can still be achieved. By entering into this hold harmless and easement encroachment agreement the property owner agrees to cover all expenses due to damage and/or removal of improvements (wall and fence) that are within the easement. ACTION REOUIRED The City Council is requested to approve the hold harmless and easement encroachment agreement with Joseph and Amanda Churchich, property owners at 2410 151 st Avenue NW. ly submitted, KameronKyto~ 0 Natural Resources Technician Attachments: Hold Harmless and Easement Encroachment Agreement /' Cc: Joseph and Amanda Churchich, 2410 151 st Avenue NW, Andover HOLD HARMLESS AGREEMENT 0 AND EASEMENT ENCROACHMENT AGREEMENT THIS AGREEMENT, made this 6th day of August, 2008, by and between Joseph and Amanda Churchich, owners of said property noted below and the City of Andover, a Minnesota Municipal Corporation (hereinafter "City"). WHEREAS, Joseph and Amanda Churchich is the fee owner of 2410 151st Avenue NW (PIN 21 322441 0007; Lot 2 Block 1, Woodland Estates 3rd Addition), Andover, Anoka County, Minnesota; and WHEREAS, drainage and utility easements exist throughout the property; and WHEREAS, Joseph and Amanda Churchich understand that a retaining wall and fence (hereinafter "improvements") will encroach into said drainage and utility easements (see Exhibit C); WHEREAS, Joseph and Amanda Churchich agree to construct the retaining wall and erect the fence as identified in Exhibit C; WHEREAS, the City is willing to acknowledge and agree to an encroachment of the drainage and utility easements for said improvements assuming certain conditions 0 are met; WHEREAS, Joseph and Amanda Churchich is aware the area is for drainage and utility purposes and acknowledges that access, maintenance, repair and/or replacement may be required in said easements resulting in removal of the improvements; NOW, THEREFORE, in consideration of the foregoing and the City's consent and approval to the encroachment onto the drainage and utility easements, Joseph and Amanda Churchich hereby agree to hold the City harmless and indemnify the City from any and all liabilities, and defend against lawsuits, expenses, damages, acts or failures to act, attorney's fees and court costs, which may arise as a result of Joseph and Amanda Churchich or ~heir successors in interest constructing and maintaining said improvements upon the utility easements of the City. Furthermore, the City not be held responsible for any damage to said improvements constructed on the City's easements if they are damaged or destroyed as a result of the City exercising its rights to access, excavate, repair, construct or maintain any public improvements within said easements. 0 The City may require evidence of insurance from property owner to cover the indemnification required herein. 0 IN WITNESS WHEREOF, the parties have hereunto set their hands this day of August 2008. CITY OF ANDOVER, a Municipal Corporation By: Its: Deputy City Clerk By: Its: Amanda Churchich STATE OF MINNESOTA ) ) ss. COUNTY OFANOKA ) 0 On this day of August, 2008, before me, a notary public within and for said county, personally appeared for Michelle Hartner and Michael R. Gamache to me known to be respectively the Deputy City Clerk and Mayor of the City of Andover, and who executed the foregoing instrument and acknowledge that they executed the same on behalf of said City. Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF ANOKA ) On this 30d- day of July, 2008, before me, a notary public within and for said county, personally appeared for Joseph and Amanda ChU~ _A~~ . , Notary Public This instrument was drafted by: City of Andover . :4 1685 Crosstown Blvd. NW I DANA LYNN PEITSO I Andover, MN 55304 . NOTARY PUBLIC-MINNESOTA 0 My CoII\IIIiS8lOII Ex1*ea Jaft. 31, 2011 This instrument is exempt from registration tax and recording fee$, ~~~N. the Minnesota statutes. G:\DATA\STAFF\RHONDAA\FORMS\HOLD HARMLESS AGREEMENT.cIoc i..;,.. i ................+1.~............... ... .......... ,.. . ". .... '.' .' ..... . m,m. ..~~.....;\li! I~ ~."'% ..... ". ", ...1"""""" / ""; , . . · .. ["" 'fmDIN "';i.,,, I~" """ ,,,. ."" . """ ....... . ~ '., i.'~ ':.. ,.... , .... .......... - ...I~.>'.." ~.'. (..l~l -.~,. _, . >( ~, '. . '\ ~"..' . . '; ..Z #' .. ......~~'. \ i\.. ~",,",... ilL.. '-,..~ '..;.1 2' ~ '.., \ ~ -.. -l' \.> ,.. .. . . .'. ..J . .' ." m_ , , , \ . 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(j) 0 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 ~ CC: Jim Dickinson, City Administrator . David Berkowitz, Director of Public Works/City Enginee~ FROM: Kameron Kytonen, Natural Resources Technician SUBJECT: Approve Hold Harmless and Easement Encroachment Agreement/289 139th Avenue NW - Engineering DATE: August 6, 2008 INTRODUCTION The City Council is requested to authorize the approval of a hold harmless and easement 0 encroachment agreement with Stephen and Margaret Meados, property owners at 289 139th AvenueNW. . DISCUSSION The property owners (Stephen and Margaret Meados) would like to put up a chain link fence on the property, which encroaches into drainage and utility easements on the north and west sides of the property. Typically fences are not allowed in such easements due to access requirements and maintenance needs by the City. Staff has reviewed the proposal closely, and has determined that general maintenance can still be achieved. By entering into this hold harmless and easement encroachment agreement the property owner agrees to cover all expenses due to damage and/or removal of improvements (fence) that are within the easement. ACTION REQUIRED The City Council is requested to approve the hold harmless and easement encroachment agreement with Stephen and Margaret Meados, property owners at 289 139th Avenue NW. Res, fully SUif Kameron Kytonen 0 Natural Resources Technician ./ Attachments: Hold Harmless and Easement Encroachment Agreement Cc: Stephen and Margaret Meados, 289 139th Avenue NW, Andover 0 HOLD HARMLESS AGREEMENT AND EASEMENT ENCROACHMENT AGREEMENT THIS AGREEMENT, made this 6th day of August, 2008, by and between Stephen and Margaret Meados, owner of said property noted below, and the City of Andover, a Minnesota Municipal Corporation (hereinafter "City"). WHEREAS, Stephen and Margaret Meados is the fee owner of 289 139th Avenue NW (Lot 10, Block 4, Shadowbrook 2nd Addition, PIN 36 3224120026), Andover, Anoka County, Minnesota; and WHEREAS, drainage and utility easements exist throughout the property; and WHEREAS, Stephen and Margaret Meados understand that a fence (hereinafter "improvements") will encroach into said drainage and utility easements; WHEREAS, the City is willing to acknowledge and agree to an encroachment of the drainage and utility easements for said improvement assuming certain conditions are met; and 0 WHEREAS, Stephen and Margaret Meados is aware the area is for drainage and utility purposes and is an easement dedicated to city access and acknowledges that access may be required in said easements resulting in removal of the improvement. NOW, THEREFORE, in consideration of the foregoing and the City's consent and approval to the encroachment onto the drainage and utility easements Stephen and Margaret Meados hereby agree to hold the City harmless and indemnify the City from any and all liabilities, and defend against lawsuits, expenses, damages, acts or failures to act, attorney's fees and court costs, which may arise as a result of Stephen and Margaret Meados or their successors in interest constructing and maintaining said improvements upon the utility easements of the City. Furthermore, the City not be held responsible for any damage to said improvements constructed on the City's easements if they are damaged or destroyed as a result of the City exercising its rights to access, excavate, repair, construct or maintain any public improvements within said easements. City may require evidence of insurance from 0 Stephen and Margaret Meados to cover the indemnification required herein. C:\Users\Dad\AppData\Local\Microsoft\Windows\Ternporary Internet Files\Content.IE5\SNRTVOM1 \easementEncroachMeados.doc IN WITNESS WHEREOF, the parties have hereunto set their hands this 0 day of August, 2008. CITY OF ANDOVER, a Municipal Corporation By: Its: Deputy City Clerk By: Its: Mayor ~~~ ~~ St~phen Me~ 17 kf'iJi- JI- 7jLu/~ Margaret Meados STATE OF MINNESOTA ) ) ss. COUNTY OF ) On this day of August, 2008, before me, a notary public within and for said county, personally appeared for Michelle Hartner and Michael R. 0 Gamache tq me known to be respectively the Deputy City Clerk and Mayor of the City of Andover, and who executed the foregoing instrument and acknowledge that they executed the same on behalf of said City. Notary Public STATE OF MINNESOTA) )ss. COUNTY OF ) On this 21 t--r day of July, 2008, before me, a notary public within and for said county, personally appeared for Stephen and Margaret Meados. dLf.~A ~otary Public : DRAFTED BY: t .DANALYNN PSTSO I City of Andover 1685 Crosstown Blvd. NW NOTARY PUBLIC-MINNESOTA Andover, MN 55304 MY~ ExpIres JIlL 31, 2011 "'.,.,.._"" .Jt..N~""'~" This instrument is exempt from registration tax and recording fees under 0 Section 386.77 of the Minnesota statutes. C:\Users\Dad\AppData\Local\Microsoft\Windows\Ternporary Internet Files\Content.IE5\SNRlVOM1 \easernentEncroachMeados.doc . (]) 0 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 ~ CC: Jim Dickinson, City Administrator ... David Berkowitz, Director of Public Works/City Engineer'1:::VD FROM: Kameron Kytonen, Natural Resources Technician SUBJECT: Approve Hold Harmless and Easement Encroachment Agreement/1519 159th Avenue NW - Engineering DATE: August 6, 2008 INTRODUCTION The City Council is requested to authorize the approval of a hold harmless and easement 0 encroachment agreement with Richard Schmidt, property owner at 1519 159th Avenue NW. DISCUSSION The property owner (Richard Schmidt) would like to put up a privacy fence on the property, which encroaches into a drainage and utility easement on the north side of the property. Landscaping (a rock pond structure) already exists in the easement. Typically fences and other permanent landscapes are not allowed in such easements due to access requirements and maintenance needs by the City. Staff has reviewed the proposal closely, and has determined that general maintenance can still be achieved. By entering into this hold harmless and easement encroachment agreement the property owner agrees to cover all expenses due to damage and/or removal of improvements (fence and rock pond structure) that are within the easement. ACTION REOUIRED The City Council is requested to approve the hold harmless and easement encroachment agreement with Richard Schmidt, property owner at 1519 159thAvenue NW. ly ~fii= ameron Kytonen Natural Resources Technician 0 ./ Attachments: Hold Harmless and Easement Encroachment Agreement Cc: Richard Schmidt, 1519 159th Avenue NW, Andover 0 HOLD HARMLESS AGREEMENT AND EASEMENT ENCROACHMENT AGREEMENT THIS AGREEMENT, made this 6th day of August, 2008, by and between Richard Schmidt, owner of said property noted below, and the City of Andover, a Minnesota Municipal Corporation (hereinafter "City"). WHEREAS, Richard Schmidt is the fee owner of 1519159th Avenue NW (Lot 5, Block 1, Chesterton Common North, PIN 14 32 24 32 0020), Andover, Anoka County, Minnesota; and WHEREAS, drainage and utility easements exist throughout the property; and WHEREAS, Richard Schmidt understands that a fence and rock pond structure (hereinafter "improvements") will encroach into said drainage and utility easements; WHEREAS, the City is willing to acknowledge and agree to an encroachment 0 of the drainage and utility easements for said improvements assuming certain conditions are met; and WHEREAS, Richard Schmidt is aware the area is for drainage and utility purposes and has a buried utility within the easement and acknowledges that access may be required in said easements resulting in removal of the improvements. NOW, THEREFORE, in consideration of the foregoing and the City's consent and approval to the encroachment onto the drainage and utility easements Richard Schmidt hereby agrees to hold the City harmless and indemnify the City from any and all liabilities, and defend against lawsuits, expenses, damages, acts or failures to act, attorney's fees and court costs, which may arise as a result of Richard Schmidt or their successors in interest constructing and maintaining said improvements upon the utility easements of the City. Furthermore, the City not be held responsible for any damage to said improvements constructed on the City's easements if they are damaged or destroyed as a result of the City exercising its rights to access, excavate, repair, construct or maintain any public improvements 0 within said easements. City may require evidence of insurance from Richard Schmidt to cover the indemnification required herein. C:\Documents and Settings\Rick\My Documents\My eBooks\easementEncroachSchmidt.doc IN WITNESS WHEREOF, the parties have hereunto set their hands this 0 day of August, 2008. CITY OF ANDOVER, a Municipal Corporation By: Its: Deputy City Clerk ~~~~ Richard Schmidt STATE OF MINNESOTA ) ) ss. COUNTY OF ) On this day of August, 2008, before me, a notary public within and for said county I personally appeared for Michelle Hartner and Michael R. Gamache to me known to be respectively the Deputy City Clerk and Mayor of the City of Andover, and who executed the foregoing instrument and acknowledge that 0 they executed the same on behalf of said City. Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF ) On this ~~tiA day of July, 2008, before me, a notary public within and for said county, personally appeared for Richard Schmidt. !2vu'.' ,~ Notary P~ "- DRAFTED BY: City of Andover e PATRlCIAJ.BOYSEN 1685 Crosstown Blvd. NW : NOTARY PUBLIC - MINNESOTA Andover, MN 55304 . . My Commission Expires Jan. 31, 2013 This instrument is exempt from registration tax and recording fees under Section 386.77 of the Minnesota statutes. 0 C:\Documents and Settings\Rick\My Documents\My eBooks\easementEncroachSchmidt.doc S'\CITY o.~~ @ 0 NDOVE<.. .......... . . 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 CC: Jim Dickinson, City Administrat / City Engineer j)3:>B> David Berkowitz, Director of Public FROM: Jason J. Law, Assistant City Engineer SUBJECT: Approve Change Order #1 /2008 Overlays Northglen Area (C.P. 08-02A) - Engineering DATE: August 6, 2008 INTRODUCTION This item is in regards to approving Change Order #1 for the above referenced project. DISCUSSION 0 Change Order #1 is for additional work to remove and replace water main gate valve boxes in the Northglen Area. The majority of the existing gate valve boxes were installed incorrectly when originally constructed and they could not be adjusted for the new construction. The existing gate valve boxes were excavated and repaired, if possible, or replaced if necessary. Loose rock was also added to this change order that was used for erosion control prior to a heavy rainstorm. The change order results in an increase to the contract in the amount of $6,259.20. BUDGET IMP ACT The increased costs associated with the gate valve repairs will be funded by the Trunk Water Fund ($5,951.20). The increases associated with the erosion control rock($308.00) will be funded through the Road and Bridge Fund (75%) and assessments to the benefiting properties (25%). ACTION REQUIRED The City Council is requested to approve the resolution approving Change Order #1 for the 2008 Overlays Northglen Area (C.P. 08-02A). {j::JUbrnilted, ... - rfLs- Jason J. Law / / 0 Attachments: Resolution, Change Order #1 0 CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RES. NO. MOTION by Councilmember to adopt the following: A RESOLUTION APPROVING CHANGE ORDER #1 TO PROJECT NO. 08-2A NORTHGLEN AREA (2008 OVERLAYS). WHEREAS, the City of Andover has a contract for Project No. 08-2A Northglen Area (2008 Overlavs). with Rum River Contracting Co. of Princeton. MN NOW THEREFORE, BE IT RESOLVED by the City Council of Andover to hereby approve the change order to Project No. 08-2A. Adopted by the City Council of the City of Andover this 6th day of 0 August , 2008. CITY OF ANDOVER ATTEST: Michael R. Gamache - Mayor Michelle Hartner - Deputy City Clerk 0 9\NDbVE~ 0 CHANGE ORDER Change Order No.: 1 Date: 7/28/08 Sheet: 1 of 1 Project Name: 2008 Overlays - Northglen Addition Project No.: 08-02a Contractor: Rum River Contracting You are hereby directed to make the following change to your contract dated April 30th. 2008. The change and the work affected thereby is subject to all contract stipulations and covenants. This change order will (increase) (decrease) (ne- ehaRge) the contract sum by six thousand two hundred fifty nine and 20/1 00 Dollars ($6,259.20). This Change Order provides for the following extra work: Description Increase (Decrease) Water main valve box repairs $5,951.20 Loose rock for erosion control $308.00 0 Total Amount of Change Order $6,259.20 Amount of Original Contract $753,926.39 Additions Approved to Date (Change Order # ) $0.00 Deductions Approved to Date (Chage Order # ~ $0.00 Contract Amount to Date $753,926.39 Amount of this Change Order (Add) (Deduct) (No Change) $6,259.20 Revised Contract Amount $760,185.59 Approval: City of Andover Approval: Rum River Contracting By: David D. Berkowitz By: Name Name Director of PW / City Engineer Title Title Signature Date Signature Date 0 Change OrderNo 1.xls CITY o f- @ 0 NDOVE 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 SUBJECT: Approve Contract for School Liaison/Anoka-Hennepin School District #11 DATE: August 6, 2008 INTRODUCTION Annually the City of Andover and the Anoka Hennepin School District 11 negotiate a contract for the purchase oflaw enforcements services (police liaisons). DISCUSSION The attached contract is consistent with previous year's contracts and is recommended for 0 approval by City Administration. BUDGET IMPACT The contract provides for a payment from the School District to the City of Andover in the amount of $83,988. This revenue is used to offset the total cost of the City's contract with the Anoka County Sheriff s Department. ACTION REQUESTED The Andover City Council is requested to approve the attached contract. - Attachments 0 Anoka-Hennepin July 17, 2008 Independent School District No. 11 Om Dickinson Interim City Administrator Andover City Hall 1685 Crosstown Blvd NW Andover MN 55304 Dear Mr. Dickinson, It is once again time to renew Anoka Hennepin School Districts' Police Liaison - Prevention Program contracts. Anoka Hennepin School District receives funds through the Crime Levy to purchase services from local law enforcement agencies. The amounUhat has been allocated to the City of Andover for the provision of police liaison officers and/or prevention programs like DAR.E. is $ 83.988.00 Please take some time to review the enclosed contract. There have been some changes. The term 'Prevention Program' has replaced 'DAR.E.' to give more flexibility to communities that are choosing a program other than DAR.E. for prevention instruction. The billing process has also been changed. You can now include your statistical information (#4) and submit your invoice (#10) at the end of the school year. We greatly appreciate the services you are able to provide to your community schools by combining the School District Crime allocation with your own resources. I have enclosed the following to help you administer the contract with the School District. Q. Copy of the contract for the 2008-2009school year. PI ase sign and return an executed contract as soon as possible. 2. Contract Administration Form. 3. School Calendar The invoice for services provided must include the name of the each school and the services provided (prevention program name and/or Liaison services), the officer's name, and the cost incurred at each site as required by the Anoka Hennepin accounting department. ATTN: Carolyn Lakanen ESC 11299 Hanson Blvd NW Coon Rapids MN 55433 763-506-1076 I look forward to working with you. If you have any questions, please do not hesitate to contact me. Sincerely, ~ Dr. Michelle Langen eld K-12 Associate Superintendent Anoka-Hennepin ISD #11 0763-506-1065 Encl: Contract, Calendar Cc Lt. Ronald Bouley . . ........ ........... .... .................... . .'. ...... .......... ........ ...... ....... .... ". ......... ...... .' .. .. ... .. ...... _. ..'.. '.. '. ................. ." .,' ..' .:..'.... ," ,',' ..... , . .. . . .... - ..'- -. ..' ,. . O .. ..... . . . ,-'- . ~ @h--n-, - :.- . , ,.....j..... - , . "n ......-..........-.... . _ _. _ ,__ __n., This contract by and between the City of Andover (hereafter referred to as "City") and Anoka - Hennepin Independent School District No. 11 (hereafter referred to as "District) is entered into under Minnesota law. PURPOSE: This contract is to address the need for the presence of police officers in District schools to provide prevention program instruction and liaison service to the District schools recognizing these services: 1. Promote crime prevention within District schools. 2. Provide drug abuse education. 3. Coordinate activities between the District, the criminal justice system, and social services. 1. DEFINITIONS. Police Officers working in the District will be engaged in two authorized programs. The School Liaison Officers in the middle schools and high schools will serve students and staff primarily in the area of crime prevention. Officers in the prevention program in the elementary schools will present an approved prevention program which is a part of the fifth grade health curriculum. 2. OFFICER EMPLOYED BY CITY. City shall employ (or assign), in accordance with applicable state statutes, a police officer or officers to serve as School Liaison and Prevention Program officer(s) in District schools. The selection or assignment of such officers shall be done by City in consultation with the principals in the area or City covered by this contract. City shall assume all obligations and O payments with regard to officers' salaries and benefits including worker's compensation, PERA, withholding taxes, etc. District will reimburse City as defined in Part 10 of this document. 3. TERM OF CONTRACT. The term of this contract shall be from July 1, 2008 to June 30, 2009, District's fiscal year, renewable each year unless terminated by either party as defined in paragraph 10. 4. ADMINISTRATION RESPONSIBILITIES. Law enforcement services rendered to District shall be at the sole direction of City. Standards of performance, discipline of the officer assigned, and other internal matters shall be under the authority of City. If requested, District shall provide City with an appraisal of the services received. City shall provide District with a statistical summary report once a year indicating services provided at the secondary level. Prevention Program . schedules. and the name of the officer(s) providing the service. 5. LEVEL OF SERVICE. The officer will respond to emergency calls within the boundaries of City and attend police training and special duties as assigned by City while fulfilling the requirements of this contract. Time spent on emergency calls, police training, etc., shall not be considered to be time spent as a School Liaison or Prevention Program officer. Time in excess of eight hours per day shall be paid according to the officer's contract, providing such additional time has been approved in advance by City and District. Blanket approvals will not be accepted. 6. DUTIES OF OFFICER. The list of basic duties and work schedule of the officer(s) shall be cooperatively developed between City and District. 6a. PRIVACY OF PUPIL RECORDS. Pursuant to the District's Protection and Privacy of Pupil Records O Policy and consistent with the requirements of the family Educational Rights and Privacy Act and the Minnesota Government Data Practices Act, police officers shall be deemed to be a school official when performing the duties and responsibilities of the Police Liaison Officer. As such, the Police Liaison Officer and City certify and agree that all data created, collected, received, stored, used, maintained, or disseminated by the Police Liaison Officer must comply with the Family Educational Rights and Privacy Act and the Minnesota Government Data Practices Act. . , 7. CLOTHING, EQUIPMENT, AND SUPPLIES. City shall provide any required clothing, uniforms, 0 vehicle, necessary equipment and supplies for officer to perform law enforcement duties. District shall provide School Liaison Officers with a private, lockable office, telephone, and supplies necessary for the officer to perform required duties as specified in paragraph 6 of this contract. 8. SCHOOL CALENDAR. District shall provide City with a school calendar. Liaison services will be provided during the regular school year. 9. TERMINATION. Either party may terminate this agreement upon 30 days written notice of such termination. All payment due hereunder shall be prorated in the event of such termination. 10. DURATION AND COST. For and in consideration of the provision of School Liaison Officer and the Prevention Program Officer services in accordance with the terms of this contract, District shall pay City the sum $83.988.00. Request for payment should be submitted by June 1, 2009 of the fiscal year. 11. SERVICE TO SCHOOLS. The following secondary schools shall receive School Liaison Officer service as a result of this contract: Andover High School Oak View Middle School The following elementary schools shall receive Prevention Program services as a result of this contract: Andover Elementary 0 Crooked Lake Elementary Rum River Elementary 12. SCOPE. It is agreed that the entire agreement of the parties is contained herein and that this agreement supersedes all oral and written agreements and negotiations between the parties relating to the subject matter hereof. IN WITNESS WHEREOF, the parties have hereunder to set their hands. City of Anoka - Hennepin School District No. 11 Signed By Title Date 0 . i . CONTRACT ADMINISTRATION INFORMATION FORM 0 CONTACTS AT THE SCHOOL DISTRICT Contracted Administration Dr. Michelle Langenfeld, K-12 Associate Superintendent Educational Service Center 11299 Hanson Blvd NW Coon Rapids MN 55433 763-506-1065 Program Administration Rhonda Dean, Principal Andover High School 763-506-8400 Jinger Gustafson, Principal Oak View Middle School 763-506-5600 Dorothy Olsen, Principal Andover Elementary 763-506-1700 Cheryl Kortuem, Principal Crooked Lake Elementary 763-506-2100 0 Deborah Shepard, Principal Rum River Elementary 763-506-8200 Payment Procedures- Pursuant to section 10 of the agreement, the City should submit a bill to: A TTN: Carolyn Lakanen ESC 11299 Hanson Blvd Coon Rapids MN 55433 763-506-1076 0 . JULY JANUARY M T W TH F M T W TH F ~OKA-HENNEPIN 2008.2009 1 2 3 . - SCHOOLS CALENDAR 7 8 9 10 11 5 81 6 82 7 83 8 84 9 85 A fUture without limit 14 15 16 17 18 12 86 13 87 14 88 15 89 16 90 21 22 23 24 25 . 20 91 21 92 22 93 @94 28 29 30 31 26 95 .96 28 97 29 98 30 99 2008-2009 Calendar Key Dates. Teacher Duty Days AUGUST FEBRUARY July 4 . . . . . . . . . . . . . . . . . . . . . . . . . School District closed M T W TH F M T W TH F Aug 19 - 21 ................. New Teacher Orientation 1 2 100 3 101 4 102 5 103 6 104 Aug 25 - 28 . . . . . . . . . . . . . . . . . . . . . Preschool Workshop September 1 . . . . . . . . . . Labor Day, School District closed 4 5 6 7 8 9 105 10 106 11 107 12 108 13 109 September 2.. .. .. . . .. . .. . . . , . . .. .. . . . School opens 11 12 13 14 15 . 17 110 18 111 19 112 20 113 Oct 16 - 17 ........... Teachers' Convention, no school October 27 , . . . . Staff Development, no Gr K-12 students 18 ~ &.& 22 23 114 24 115 25 116 _118 November 6 . . . . . . . End first quarter - Gr Kx-12: 45 days 251 26 2 27 3 28 4 29 November 7 . . . . . . . . Staff Planning, no Gr K-12 students November 24- 25. . . . . . . . . . . . . . EOD K PIT Conferences, No school for EOD K students SEPTEMBER MARCH November 26 . . . Gr K -12 PIT conference conversion day, no Gr K -12 students Nov 27 - 28 . . . Thanksgiving break, School District closed M T W TH F M T W TH F Dee 22 - Jan 2. . . . . . . . . . . . . . . . Winter break, no school . 2 5 3 6 4 7 5 8 Dee 24 & 25 . . . . . . . . . . . . . . . . . . . . School District closed January 1 .. . .. . . . . .. .. . . .. . .. .. School District closed 8 9 9 10 10 11 11 12 12 13 9 119 10 120 11 121 12 122 13 123 January 5. . . . . . . . . . . . . . . . . . . , . . . . . . . School resumes 1514 16 15 17 16 18 17 19 18 16 124 17 125 18 126 19 127 20 128 January 19. . . . . . Martin Luther King's Birthday, no school January 23. . . . . . . End second quarter: Gr Kx-12: 41 days 2219 23 20 24 21 25 22 2623 23 129 24 130 25 131 26 132 27 133 onuary 26 . . . . . . . . . Staff Planning, no Gr K-12 students 2924 30 25 30 134 31 135 nuary 27. . . . . . . . . . . . . . . . Gr K - 5 Staff Development, no Gr K - 5 students February 16. . . . . . . President's Day, School District closed OCTOBER APRIL February 26 - 27 . . . . . . . . . . . . . . EOD K PIT Conferences, No school for EOD K students March 2 - 6. . . . . . . . . . . . . . . . . . . Spring break, no schooi M T W TH F M T W TH F March 9 . . .. .. .. .. . . .. . .. . . .. .. . . . . . School resumes 1 26 2 27 3 28 1 136 CD 137 3 138 April 2 . . . . . . . . . . . . . End third quarter, Gr Kx-5: 41 days; Gr 6-12: 42 days 6 29 7 30 8 31 9 32 10 33 6 139 7 140 8 141+2_ April 3 . . . . . . . . . . . . . Staff Pianning, no Cr K-12 students 1334 14 35 15 36 - 13 144 14 145 15 146 16 147 17 148 April 9 - 10 . . . . . . . . Spring HOliday; School District closed May 25 . . . . . . . . . . . . Memorial Day, School District closed 2037 21 38 22 39 23 40 2441 20 149 21 150 22 151 23 152 24 153 June 11 . ... , . . . . . End fourth quarter, Gr Kx-12: 46 days June 12 . . . . . . . . . . . . . . . . . . Staff Planning, no students 2742 28 43 29 44 30 45 31 46 27 154 28 155 29 156 30 157 NOTE: Every effort will be made to make up instructional days lost to emergency closing, Make up of lost instructional days will occur first by converting days NOVEMBER MAY designated as 'staff planning' (November 7, January 26, April 3, June 121: second, by reducing spring break or extending the school year beyond June 11. 312008 M T W TH F M T W TH F KEY. TEACHER DUTY DAYS 3 47 4 48 5 49 (D50 7 51 1 158 . Schools Not In Session - 1052 11 53 12 54 13 55 14 56 4 159 5 160 6 161 7 162 8 163 No school for students, teachers. paras. cooks 1757 18 58 19 59 20 60 21 61 11 164 12 165 13 166 14 167 15 168 Staff Planning/Staff Development - _63 26 64+1_ 18 169 19 170 20 171 21 172 22 173 No school for K -12 students . Elementary Staff Development - . 26 174 27 175 28 176 29 177 No school for K-5 students . EOD K ParenVTeacher Conference Day - DECEMBER JUNE No school for EOD K students, School for Kx students ParenVTeacher Conference Conversion Day- M T W TH F M T W TH F Check with individual buildings for actual 1 66 2 67 3 68 4 69 5 70 1 2 179 3 180 4 181 5 182 conference schedule 178 o School District Closed - Designated Holiday 8 71 9 72 10 73 11 74 12 75 8 183 9 184 10 185 @186 12 187 o End of Quarter 1576 16 77 17 78 18 79 19 80 15 16 17 18 19 22 23 24 25 26 L. New Teacher Orientation 29 30 0 @ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 . FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.U5 TO: Mayor and Council Members CC: Jim Dickinson, City Administrator FROM: Dan Winkel, Fire Chief SUBJECT: Award Bid for Fire Department Tanker Truck (Supplemental) - Fire DATE: August 6, 2008 INTRODUCTION The bid results will be provided at the City Council meeting as a supplemental item. 0 Respectfully submitted, Dan Winkel 0 @ 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and City Council ~ CC: Jim Dickinson, City Administrator '. . FROM: Michelle Hartner, Deputy City Clerk SUBJECT: Adopt Resolution Appointing Election Judges for Primary Election DATE: August 6, 2008 INTRODUCTION The City Council is required to appoint judges to serve at the Primary Election on Tuesday, September 9, 2008. 0 ACTION REQUIRED Council is requested to adopt the attached resolution appointing judges for the Primary Election. Respectfully submitted, \ , ... Mic elle Hartner Deputy City Clerk Attach: Resolution 0 0 CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION APPOINTING JUDGES TO SERVE AT THE SEPTEMBER 9, 2008 PRIMARY ELECTION IN THE CITY OF ANDOVER. WHEREAS, the City Council is required by State Statute to appoint election judges to serve at the September 9,2008 Primary Election. NOW, THEREFORE, BE IT RESOLVED that the following are appointed to serve as election judges at the September 9, 2008 Primary Election. Precinct # 1 - Hope Lutheran Church Gloria Young, Chief Judge Annette Anderson Donald Berg David Catherson 0 Sharon Cramer Karen Godfrey Carol Moeller Shirley Olson Michael Schilling Richard Snyder Donna Turnbom Precinct #2 - Grace Lutheran Church Gretchen Sabel, Chief Judge Nancy Ahlberg Christine Deggendorf John Johanson Bonnie Lapham Fred Lown Marie Romo Pamela Schilling Precinct #3 - Riverdale Assembly of God Church Phyllis Kieffer, Chief Judge 0 Pamela Anson Elaine Boos Kay Funk 0 Precinct #3. Cont. Sue McBride Barbara Peters Connie Schultz Michael St. John Precinct #4 - Crooked Lake Elementary School Kelly Danzl, Chief Judge John Catherson Leatrice Cooper Stan Graf Carol Hibbard Mildred Johnson Liliya U stimchuk Precinct #5- Meadow Creek Church Terry VanNote, Chief Judge Don Ahlberg John Hibbard 0 Jerome Lapham Pat Larson Mary Munson Ginger Nelson Luther Romo Mary Ellen Simcoe Peter U stimchuk Precinct #6 - Bunker Hills Activity Center Carol Murschel, Chief Judge Susan Beal Dan Frost Albert LaCombe Dan Lehrer Judy Lestina Deborah Mayasich Joyce Olson Sandy Roslin Precinct #7 - Constance Free Church 0 Lois Spadgenske, Chief Judge Shirley Beam Nancy Brinkman Kim Halberg Richard Lindmark, Jr. Pat Lindquist Pat Maltzen 0 Larry Mueller Norman Myhre Lisa Nicoski Mary Sullivan Precinct #8 - Andover Christian Church Marie Bourque, Chief Judge Corrine Buftham Julie Haugen MeganJan Tom Johnson Rachel Kintop Bruce Maltzen John Marek Ashley Young Precinct #9 - Prairie Oak Community Church Julie Trude, Chief Judge Bruce Crane Susan Fanucci 0 Dolores Jeska Peggy Kuntz Patricia Matthies William Obedoza Nancy Posl Lucy Schalwig Patricia Schert Mary White Precinct #10 - Andover Elementary School Brenda Fildes, Chief Judge James Anderson Sharlene Booker Stan Deden Barbara Humphreys Lois Koblitz Joellyn Soler Sandra Stewart Adopted by the City Council ofthe City of Andover this day of . 2008. 0 Attest: CITY OF ANDOVER Michelle Hartner-Deputy City Clerk Michael R. Gamache - Mayor @ 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.C. NDOVER.MN.US TO: Mayor and Councilmembers CC: Jim Dickinson, City Administrator FROM: Will Neumeister, Director of Community Development ~ SUBJECT: Discuss Pool Fencing Requirements -- Planning DATE: August 6, 2008 INTRODUCTION Staff received this written request to discuss the issue once again, as you will recall the same issue was discussed on November 8, 2006 and the decision of the Council was to 0 deny the request (to only have a pool cover rather than a fence). See attachments to refresh your memory. DISCUSSION This case is very similar and staffhas explained that they are required to fence the pool and the plans were stamped that way by the Building Department. The owner indicates that his neighbors are supportive of his request to use the pool cover to secure the pool and they have signed his letter to show their support. ACTION REOUESTED The Council is asked to review the letter from Torrey Kjelstad (17241 Partridge St.) and discuss the pool fencing requirements and provide staff direction whether any changes are warranted to the City code requiring fences around pools. Respectfully submitted, t::.c/J-- Will Neumeister Attachments Letter from Torrey Kj elstad Photos of Mr. Kjelstad's Pool 0 Copy of Current Pool Fence Requirements Previous Record of Denial of Similar Request .... 0 06/11108 ~ Torrey, Shanon and Bjorn Kjelstad 17241 Partridge St. Nw Andover, Mn. 55304 My name is Torrey Iqelstad and I work at Hanson Builders. My wife's name is Shanon and she is a Nurse Anesthetist at Mercy and Unity Hospitals. Our son's name is Bjorn and he will be an eighth grader at Oak View Middle School. We have been Andover residence for fIfteen years. We currently live on 2.67 acres in an older acreage development. We recently had Valley Pool and Spa install a 20'x 44' in ground pool with an auto cover. The auto cover is controlled bv a security code pad. There are two primary reasons why we had installed an auto cover... The first reason was to keep children and critters out of the pool and the second reason was that it would help keep debris out and the heat from the pool heater in, it is expensive to heat 28000 gallons of water. With that being said, the only time the pool cover is ever open is when we are using the pool. We understand that for a short time, Andover allowed pool owners that had auto covers installed not have to install a fence. We are asking the members of the Andover board to reconsider the pool fence- code on acreage lots.. .. 0 -. .. '--. .. . - .. - - Below is a list of neighbors with address's that approve of~'~ot having to install a pool fence. Name's Adp.ress's I, '-- - - .... . -. 0 .- ". -_.- o o 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER. MINNESOTA 55304 . (763)755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US SWIMMING POOLS A Building Permit is required before work is commenced on the construction of a swimming pool or spa or before any alteration, addition, remodeling, repair, or other improvement is made. . Application shall be made in writing t6 the. Building Official and shall include two (2) sets of plans and specifications and pertinent explanatory . data for approval relative to design, operation, and maintenance insofar.as health and safety fea~es are concemed~ The plans will show the general layout of the entire building lot on which the pool or spa is to <llocated, length, depth, an~ width of the pool or spa, deck, ~d appurtenances, distance~. of the 001 or spa from the lot lmes,water. supply systems, buned sewers and sewage disposal systems, utilities (electric, gas, telephone, etc.), or other .sources of contamination within fifty (50') feet of the pool or spa and shall be drawnto scale of not smaller than one-fourth (1/4"=1 ') inch equals one (I') foot. CONSTRUCTION: 1. Pools and spas shall not be located beneath utility lines nor over underground utility lines . of any type. 2. No person shall build, situate or install a pool or spa within ten (10') feet of any side or rear lot line; nor within six (6') feet of ariy principal structure, nor closer to the front lot line than the principal structure, except as hereinafter provided. a. On residential parcels with a lot area of one (1 it;) acre or more, a swimming pool or spa may. be constructed closer to the front . lot line than the principal structure; however, the minimuIil distance. it may be from the front lot line. shall be two hundred (200') feet. 0 3. While being constructed, the pool or spa area must be fenced with a portable fence such as snow fence, of not less than four (4i) feet in height. 4. No pool or spa shall be located within twenty. (20') feet of any part :of an on a site sewer system. 0 CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA ORDINANCE NO. 228 An Ordinance -repealing Ordinance No. 46 adopted July 17, 1970; Ordinance No. 44A adopted August 16, 1983 and.Ordinance No.44B adopted December 17, 1985. AN ORDINANCE REGULATING THE LOCATION AND SECURITY OF OUTDOOR RESIDENTIAL SWIMMING POOLS, SPAS AND HOT TUBS IN THE CITY OF ANDOVER. The City ,Co~cil of the City of Andover hereby ordains as follows: Section 1: PUr'Dose. The purpose of this ordinance i$ to regulate the location of outdoor swimming pools, spas and hot tubs on residential zoned property and require fencing or barriers ~o protect the health, safety and general welfare of the public. Section 2. Definitions. 0 For the purpose of this ordinance, certain terms, words and phrases are defined as- - follows: Ahove-Ground/On-Groimd Pool - see definition of "swimming pool". Barrier - is a fence, wall, building wan, or a combination thereof, which completely surrounds the swimming pool and obstructs access to the swimming pool. Hot Tub - see definition of "swimming pool". In..Ground Pool ~ se_e def4lltion of "swimming p~ol". Spa - see definition of "swimming pool". .- Swimmiml Pool - is any structure intended for swimming or recreational ba~g (non- commercial use) that contains water -over twenty-four (24) inches deep. This includes in- ground, above-ground and on-ground swimming pools; hot tubs; portable and non- portable spas; and fixed-in-place wading pools. Swimminf! Pool. Indoor - is a swimming pool which is totally contained within a 0 residential structure and surrounded on all four (4) sides by walls of said structure. 0 Barriers for Swimming Pools, Spas and Hot Tubs ~ The figures below illustrate various requirements in the proposed code change on barriers I for swimming pools, spas and hot tubs (Item 113 in the 1990 Annual Report of the Code . Development Committees). ((' 1314" Ij\ 11'4" ,.. I J'l f\ """' f1 " f1 ,,'-' ~ T T T l- ~ l- ~ I __l.O ~ OV (IlU1 oc: (IlV -m Q.)C Co a;~ ....Jm ~ v ::l Q) 1 !J... , UJO ....!.. E ~~ 2" I ~ T ... "- SECTION 1243 (a), ITEM 4: IF HORIZONTAL SECTION 1243 (a), ITEM 5: IF.HORIZONTAL MEMBERS ARE LESS THAN 4S INCHES APART, MEMBERS ARE EQUAL TO OR MORE THAN 4S VERTICAL SPACING SHALL NOT EXCEED 13/4 INCHES APART, VERTICAL SPACING SHALL NOT INCHES. . EXCEED 4 INCHES. P- .- " SECTION 1243 (a), ITEM 6: 11/4-INCH SQUARE , CHAIN LINK MESH. ,.. Release mechanism Opening ; r ~. '12" max. i i- f 18" min. 3" min. , ,/ T ~ -J X ) --.. / ........ v ~ l.O 1.0 . Gate Co Gate 1 __.1 "'=" J : 2" \- THE RELEASE MECHANISM SHALL BE LOCATED AT THE RELEASE MECHANISM SHALL BE LOCATED 54 INCHES OR HIGHEA FROM THE 80TiOM OF THE LESS THAN 54 INCHES FROM THE 80TTOM'OF THE GATE. (.;A T;: CITY OF ANDOVER 0 COUNTY OF ANOKA STATE OF MINNESOTA RES. NO. R134-06 A RESOLUTION DENYING THE VARIANCE REQUEST FOR DANIEL MUS TO VARY FROM CITY CODE SECTION 9-4-5-A ON PROPERTY LOCATED AT 16659 EL DORADO STREET NW (07-32-24-44-0021) AND LEGALLY DESCRIBED AS: That part of the southeast 1/4 of the southeast 1/4 of Section 7, Township 32, Range 24 described as follows: commencing at the southeast comer of said 1/4 1/4, then west along the south line thereof 825 feet, then north 792 feet to the point of beginning; then east 495 feet, then south 92 feet, then east 319.35 feet more or less to the east line of said 1/4 1/4, then northerly along said east line 604.84 feet more or less to the northeast comer of said 1/4 1/4, then westerly along the north line of said 1/4 1/4 805.04 feet more or less to an intersection with a line bearing north from the point of beginning, then south 514.io feet more or less to the point of beginning, subject to easements of record. WHEREAS, Daniel Mus has requested a variance for the subject property from City Code section 9-4-5-A pertaining to fencing requirements for outdoor swimming pools, and; 0 WHEREAS, the Planning and Zoning Commission finds by a majority vote that the findings provided by the applicant do not constitute a hardship, and; WHEREAS, the Planning and Zoning Commission recommends to the City Council denial of the variance as requested, and; WHEREAS, the City Council finds that the variance would be detrimental to the health, safety or welfare of surrounding properties, and; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Andover hereby agrees with the recommendation of the Planning and Zoning Commission and denies the variance on said property based on the fact that findings could not be made to justify the granting of the variance and no hardship exists. Adopted by the City Council of the City of Andover on this 8th day of November 2006. / 1 CITY OF ANDOVER ~,.-? / ,.'" i~.~,../ // ,,"if. ," ,,;" J.--",.' #~... ~~ ATTEST: , ichael R. Gamache, Mayor f / i '. . [,'f c./L 0 ~(A/ )<;.~ C/ Victoria V olk, City Clerk 0 Regular Andover City Council Meeting Minutes - November 8, 2006 Page 7 CONSIDER V ARIANCE/POOL FENCE REQUIREMENTS/16659 ELDORADO STREET NW Community Development Director Neumeister explained the applicant is requesting a variance to City Code section 9-4-5-A. The provision in the City Code that requires fencing around pools is intended to protect children and others from gaining access to a swimming pool, either intentionally or unintentionally. It also serves to protect the owner of the pool from possible legal repercussions in the case of an accident. Councilmember Orttel asked if a fence around a pool is a building code ordinance. Mr. Neumeister thought it is. Councilmember Orttel did not think they could vary from that so he wondered why they were even reviewing this. Councilmember Trude wondered ifthis wouldn't take an ordinance change and if their ordinances for building code need to follow State Law they would be not be permissible. City Attorney Hawkins stated in the staff report it talks about "State Statute provides review criteria to determine the merit of a variance." He wondered if there is some provision in State Law that 0 authorized them to vary from this. Mr. Neumeister stated they have indicated this is a variance to the City Code Section 9-4-5a so they must have their own pool fence requirements but he believed there is also a State Statute on it. Councilmember Trude stated the reason they have the fence ordinance is to protect the children in the neighborhood from the danger. This is a health, safety type of ordinance that the City has. Councilmember Jacobson stated when the building permit was pulled there was a provision in the permit that said they had to have a fence. It has been a year and the fence is still not up and that was a requirement of the building permit. Whether the pool company pulled the permit rather than the owner, the pool company should have let the owner know a fence was a requirement. Even the building inspector would have told the owner that it was a requirement. Mr. Mus stated the pool covers are very safe. Councilmember Orttel wondered ifthey were so safe, why the State would not have approved the covers instead of a fence, which they have not done. Mr. Mus stated there are several cities in Minnesota that have approved the covers without a fence. Councilmember Jacobson indicated he has had three pools and before he got his fence up, a neighbor's dog jumped in his pool and drowned. He did not think Mr. Mus would want something like that to happen. Mr. Mus stated another reason for a cover like this is there are a lot of trees and this cuts down on 0 cleaning and maintenance because the cover locks all the debris out. He stated even with a fence, if he would have people over, a small child could fall in a pool and drown in two or three minutes. If they go in the house, it takes forty seconds for the cover to go over the pool. He stated this is the safest pool cover you could ever have. With the other pools they have had with a fence, they have come home late at night to neighbor kids swimming in their pool. 0 Regular Andover City Council Meeting Minutes - November 8, 2006 Page 8 Councilmember Trude stated even though Mr. Mus may be good about putting the pool cover on when they are not around, others may not be good about it and if they allow this one, they have to allow others. She thought they need to stay with the fence ordinance because other cities have that ordinance also and they feel they are protecting the children and animals in the community. Mayor Gamache asked if they have taken a look at the wall as to how tall it is and if this could be included as part of the fence. He thought the fence needed to be four feet tall. Councilmember Trude stated the wall is only on one side of the pool. Mayor Gamache asked if the wall would take care of part of the fence that would be needed to go around the perimeter of the pool. Councilmember Jacobson stated the ordinance requires a four-foot fence. Councilmember Orttel explained the type offence Mr. Mus would probably need around his pool. Councilmember Knight stated this is the first time he has seen a cover like this but at the time he was 0 at Mr. Mus' house he indicated the liability factor he would have would not go away and that is always a concern the City has. Mr. Mus stated that is his responsibility and not the city's. Councilmember Knight asked City Attorney Hawkins if the City would have any liability on something like this or would it all be the liability ofthe homeowner. City Attorney Hawkins stated they just enforce the building code and adopt regulations, which do not impose liability on the City if they miss something; it is just the matter of protecting the public. Motion by Jacobson, Seconded by Trude, to deny the proposed variance. Mayor Gamache asked what the difference is between the State Statute and the City Ordinance. If they were to change their ordinance to include the covers, does the State have a statute regarding pools? City Attorney Hawkins stated this is something they will need to check with the building official on and they would get the Council a report regarding this. Councilmember Orttel stated as long as they are contacting the State, check to see if they have considered allowing these covers in lieu of a fence. Councilmember Trude thought their building department has said a cover does not work if a person does not close it the moment they get out of the pool. Councilmember Orttel thought the stone block would count as part of the fence. Mayor Gamache 0 stated in the drawing for the permit it looks like Atlantis Pool had hash marks for a fence going from the back comer of the garage going south toward the neighbor and then back and around. He wondered if the building department could look at how much of the wall could be considered a fence. Councilmember Knight stated they have an ordinance that cannot be changed. Mayor Gamache 0 Regular Andover City Council Meeting Minutes - November 8, 2006 Page 9 thought because winter is coming upon them, they would not need the fence to be put up until the pool is opened again in the spring. Mr. Neumeister stated the handout they have at the front counter regarding pools does not reference State Statute. There is one section that quotes Ordinance 228 of City Code but he believed that was an old section of the code. This references the fencing requirements but without the statute book he cannot verify that. He wondered if the Council would want to table this item to the next meeting. They could look to see if there is a State Statute. Councilmember Orttel thought they would want a fence either way. City Attorney Hawkins was not sure if the State Building Code deals with fences. It deals with buildings and may deal with the construction of a pool but he did not know if there was anything in there regarding fences and that may be why cities have gone beyond and adopted ordinances that don't have to do with the 'construction but have to do with the safety requirements. Motion carried unanimously. (RES. R134-06) CONSIDER VARIANCEIDRIVEWAY SETBACK/13421 ROUND LAKE BOULEVARD NW Community Development Director Neumeister stated the applicant is the Anoka County Community Action Program (ACCAP). They seek a variance to allow a driveway access across another pro to provide access to the subject property. The driveway would provide access to a new h e. Mr. Neumeister stated there are four questions that were raised in the past week h in the record. 1. Why doesn't the report have a condition that combines the 10 e answer is as stated in the report. The applicant would combine the lots and there' need to condition it to happen. The building department would not allow a buildin rmit unless they provide proof they have combined the two lots. If the Council w add that as a condition that is acceptable but is not necessarily needed. 2. Should there be a requirement of scree around Round Lake Boulevard. There is a fence along Round Lake Boulevard th ovides some level of screening. The requirement to provide screening should be cdy related to the variance request and since that would be on the opposite comer 0 e lot, he did not see a need to screen Round Lake Boulevard anymore than it curr is as it does not have an impact on the home that is going to bear the burden of ha g the driveway across the lot. 0 3. The propos ouse does not face Round Lake Boulevard. Does that require a variance to City Co . No, in checking the City Code there is nothing in the current code that requires the se to face the street. The lot fronts on a public street; however the County is ohibiting the access there. Can variances be conditioned. According to the City Attorney, there is a State Statute section that allows variances to be conditioned but it must be conditions in the granting of the c <ili) 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 · (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers CC: Jim Dickinso~ City Administrator Will Neumeister, Community D~velopment Director wcl- FROM: Chris V rchota~ Associate Planner tJ. . SUBJECT: Consider V ~ance/Pool Fence Requirementsl16659 El Dorado Street NW - Planning DATE: November 8, 2006 INTRODUCTION The applicant is requesting a: variance to City Code.section 9-4-5-A, which states: "1. All outdoor swimming pools constructed shall be completely enclosed by a fence or . wall of the non-climbing type, so as not to be penetrable by toddlers, afford no external 0 handholds or footholds, and be a minimum' of four feet (4') in height; except that abovegroUnd pools with a side wall height of at least four feet (4') need not be fenced but shall have removable steps. 2. All outdoor fence openings or outdoor points of entry into the swimming pool area shall be equipped with self-closing and self-latching devices. The opening between the bottom of the fence and the ground or other surface shall not be more than three inches." DISCUSSION. The provision in the City Code that requires fencing around pools is intended to protect children and others from gaining access to a. swimming pool; either intentionally or unintentionally. It also serves to protect the owner of the pool from possible legal rep~rcUssions in the case of an accident. The applicant was issued a building permit to install the pool on May 19th, 2005. The building permit application included a 6-foot tall, non-climbing fence with self-closing . and self-latching gates. The approved building permit was stamped with a notice that the pool fencing requirements must be met, and a handout detailing these requirements was included. . . . On March 220d of 2006, a City building inspector left a note at the residence indicating that the fence mUst be installed no later than May 1st. A second note was left on August 1 st of this year, giving them a dead1in~ of September 5th. Another copy of the fencing . 0 requirement handout was provided at that time. An official notice was sent to the property owner an September 11 tit of this year, setting a deadline of October 15th, 2006 to install the fence, or the matter would be sent to the .City Attorney for legal action for non- compliance with the City Code. On October 4th, the applicant submitted his variance application. . . 0 In a handful of cases in the past, this code requirement was waived fo.r po.o.ls with special covers to. be installed witho.ut a fence being built. One of the conditions for this waiver was that the poo.l co.ver wo.uld be in place at all times when the po.ol was not in use. However, experience has sho.wn that the covers are often not put in place when the poo.l is no.t in use. The City has received a number o.f complaints about the po.o.ls being left uncovered for days o.r weeks at a time. As a result, pool covers are no.t viewed as an adequate substitute fo.r a fence. Staff took a sample of the requirements fo.r o.utdoor swimming po.o.ls in six near-by communities (Coon Rapids, Anoka, Ramsey, Blaine, Brooklyn Park, and Brooklyn Center). All six cities require fences with nearly identical specifications as Andover. The o.nly city that mentions po.o.l covers is Coon Rapids. In Coo.n Rapids, if the house acts as part of the barrier to. the swimming poo.l and there is a door providing direct access from the house to. the pool area (as in this case), the door must be alarmed or a poo.l cover must be installed in addition to. the required fence. No.ne o.f the cities had any provision fo.r a}loWing a poo.l cover in}ieu.ofthe.construction..of a fence.. . State Statute State Statute provides review criteria that are used to. determine the merit o.f variance cases. In all cases the applicant must demonstrate undue hardship. The co.nsiderations for undue hardship include: 0 1. There are circumstances unique to the pro.perty that were not created by the landowner. Unique conditio.ns may include the physical characteristics, including to.pography o.r water co.nditio.ns that may exist on the pro.perty. 2. The property, if the variance is granted, willno.t be o.ut of character with o.ther properties in the same neighborhood. 3. The applicant has exhausted all reaso.nable po.ssibilities fo.r using his/her property or combining a substandard lo.t due to size, shape or 100t line dimensions, with an adjacent vacant lot 4. Economic. considerations may not constitute an undue hardship if reasonableuse o.fthe property exists with application of the minimum. standards of this chapter. Findings for this Report Listed under the "Specific Hardship" section on the application is the following: "I've already spent $12,000 to ensure that no. one will ever drown in my po.o.l. This is my third pool the cover I have is the safest made (sic). See photos." The photos are attached to. this report. Staff Recommendation Variances are intended to. provide relief from undue hardship. St3.ff do.es no.t see a demonstrable hardship in this case and recommends denial of the variance. 0 Planning Commission Recommendation The Planning Co.mmissio.n unanimo.usly re,?o.mmended denial of the pro.posed variance on the grounds that none of the requirements for the granting of a variance, as outlined in State Statute, are met in this case. -..2- 0 Attachments Resolution of Denial Resolution of Approval Location Map Site Plan Submitted with Building Permit Application Site Photographs Planning Commission Meeting Minutes ACTION REOUESTED The City Council is asked to deny or approve the proposed variance: Resolutions. for denial and approval are attached to this report. If the Council approves the variance, they are asked to provide findings for the ~dship in this case. Cc: Daniel F. Mus, 16659 El Dorado StreetNW, Andover, MN 55304 0 0 -~- 0 0 . 0 .51:9,11.2\)06 C I T Y o F @ 0 NDOVE 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 SUBJECT: Discuss Cell Tower Lease Buy-out Proposal DATE: August 6, 2008 INTRODUCTION The City of Andover has been approached by an investment group (Wireless Lease Consultants) that is interested in purchasing the City's interest in our water tower wireless leases and purchasing a wireless communication easement over our water tower facility (the water tower on the City Hall/Public Works Campus). The City currently has two wireless antenna leases on the water tower, with T -Mobile and SprintIN extel. 0 DISCUSSION Proposal Summary: The basic proposal is the investment group is requesting the City to assign any and all rights and obligations in the City's current lease agreements on the water tower and requesting the City grant a wireless communications easement over the water tower for a term of 30 years. In exchange the City will receive a cash payment of $300,000. Current Lease Agreement Summary: The current T-Mobile and SprintlNextelleases were entered into in 1997. The initial term of each of the leases was for five years with the option of renewing each of the leases for three (3) five-year terms. Both cell companies have exercised their renewal options and the earliest withdrawal for each company at this point is 2012. Each company can renew for one more five- year term after 2012. The City has received $42,769.51 in lease revenue for 2008 ($23,557.12 from Sprint Nextel and $19,212.39 from T-Mobile) under the current agreements. Each lease agreement does provide for a 4% annual lease payment increase. Based on the current payment schedules to the next lease renewal (2012), the City is in line to receive payments totaling $188,881 ($104,034 from Sprint Nextel and $84,847 from T-Mobile). If both of the leases were renewed to 2017, the City would receive an additional $281,830 0 ($155,224 from Sprint Nextel and $126,606 from T-Mobile) in total lease payments as part of those renewals. 0 Analysis: Base on the payment schedules, the Council may be wondering why such a proposal would be considered. The basic answer why to consider is summed up in a number of different risks factors associated with leases of this type and each organizations appetite for risk. The following are some basic risk descriptions to consider: 1. Zero Risk - Assumes no inflation and zero credit risk. 2. Inflation Risk - Uncertainty over the future real (after-inflation) value of your investment. 3. Credit Risk - The possibility that a wireless carrier will default, i.e. fail to make lease payments in a timely manner or at all. 4. Liquidity Risk - The risk that the City may rely on the cash flow from the lease and not get it. 5. Termination Risk - Cell phone carrier has "At-Will" termination rights with a 60 day notice; essentially making each lease worth 2 months of rent. 6. Obsolescence Risk - The risk associated with something becoming outdated, archaic, old fashioned, obsolete... going satellite. 7. Entitlement Risk - This occurs when a jurisdiction rejects a permit a carrier needs for a site. 8. Consolidation Risk - When two wireless carriers merge and decommission redundant sites. 0 9. Tax Treatment Risk- Differential attributable to property tax exemption (or payment in lieu of tax). The risks that closely apply to our situation are Credit Risk, Obsolescence Risk, Termination Risk and Consolidation Risk. Recently there has been significant press surrounding a potential Sprint Nextel and T-Mobile merger. There has been a reduction in the total number wireless carriers over the past few years, and new technology may limit the need for tower locations. I have attached some media articles (pgs 4-19) that describe the current market and some of the potential risk conditions (submitted by the investment group). The final article "Why is there all of this interest in my cell tower lease all of a sudden?" and other materials from the author of that articles' website (pgs 20-28) to help provide an analogy of why the City is being approached at this time. City Administrator's Thoughts: First and foremost a financial transaction of this size requires a weigh-in and final decision by the City Council. My job in this situation is to deliver to the Council the best possible transaction the Council can achieve. If the Council desires future negotiations on potential buyout of the current leases with or without a 30 year wireless communication easement over the water tower, I am looking for direction on what is most important to the Council as those negotiations continue. 0 At this point I don't believe the best proposal is currently on the table an in my opinion if the Council is interested in having their antenna leases bought out and is willing to provide 30 year 0 wireless communication easement over the water tower, the proposal needs to be more lucrative for the City. The City Water Tower is a critical component of the Water Utility and that is the water tower's primary purpose. In my opinion the antenna leases are just an added bonus to help support the system, and the lease revenue does do that. If the leases went away, the water utility would still be solvent and the water tower would still serve its primary function, but the revenue gap we have become accustomed to would need to be filled, or additional expense reduction measures would need to be implemented. The granting of a 30 year wireless communication easement over the water tower may inhibit future Water Utility infrastructure decisions. The City has done a good job managing the antenna leases since 1997, and I see no reason why we wouldn't in the future, but to achieve a lease buyout it will likely only happen if a 30 year wireless communication easement is granted. I will present other thoughts and financial analysis at the meeting, but in the end I am looking for what is most important to the Council if negotiations continue. ACTION REQUESTED The City Council is requested to receive a brief presentation from the City Administrator, discuss the staff report and provide direction to staff as to whether or not the Council is interested in 0 pursuing further negotiations. Attachments 0 - ..-- -- Reactions Are Mixed On Verizon's Day-Old $28.1 Billion Acquisition Of Alltel Page 1 of2 0 washing~pQSt+com Reactions Are Mixed On A&Vl;lrti$emeni Verizon's Day-Old $28.1 Billion Acquisition Of Alltel Tricia Duryee mocoNews.net Monday, June 9, 2008; 3:00 AM A day after Verizon Wireless surprised everyone by quickly. scooping up Alltel (NYSE: AT) for $28.1. billion, reactions are mixed on what it will mean for Alltel cUstomers, what it means for Verizon's debt load going forward, how government regulators will react, and how it will affect the rest of the industry. Here's a round-up of the thoughts and opinions: -- Verizon Emphasizes Wireless: UBS analyst John Hodulik told clients in a note that wireless will now represent 55 percent of revenues for Verizon Communcations, reported Forbes. "In any acquisition, one of the biggest risks facing Verizon is that Alltel's growth may not be sustainable," he cautioned." Maintaining the growth through the integration of its assets into the Verizon fold will be. one of the main challenges. " 0 -- Heavy In Debt: By taking on $6 billion in new debt to finance the deal and assuming $22.2 billion of outstanding Alltel debt, Verizon brings its total debt load to $63 billion, Fortune notes.. "That's a substantial sum, and not without its risks." Fortune quoted. Citi Bond analyst David Hamburger as saying in a note: "While we recognize the benefits of increased scale at a time when wireless industry . growth is. slowing, we think this transaction will increase Verizon's financial risk significantly." He cut his opinion on Verizon debt to deteriorating from stable." Fitch Ratings said it may downgrade V erizon Communications following the announcement, according to MarketWatch. Moody's also said it may cut Verizon Communications' debt ratings, Reuters reported. . -- Stock prices: In afternoon trading, Verizon Communications' stock fell 55 cents, or 1.41 percent tod,ay to trade at $38.42. V odaone, which owns about half of V erizon Wireless, saw its stock trade up today 37 cents, or 1.17 percent, to $31.88 a share. -- Government regulation: There is always concern that there is not strong enough competition in wireless in the U.S., and this merger will probably increase those concerns. BusinessWeek reports this could be particularly true in Alltel's largely rural markets, which already have fewer wireless providers than major cities. Chris Murray, senior counsel with Consumers Union. And Rep. Edward Markey (D- . Mass.), chairman of the House Subco~ttee on Telecommunications &amp; the Internet, issued a statement saying the proposed merger "merits the utmost scrutiny by antitrust officials and teleoommunications policymakers to ensure that competition and consumers are fully protected." AP reported that a Justice department spokesperson will be interested in looking at the proposed transaction, and that analyst are already thin king a likely outcome will include a condition that Verizon Wireless sells off spectrum licenses in areas where its coverage overlaps Alltel's. 0 - Alltel Customers: Alltel CEO Scott Ford said customers will not see their rates or plans immediately http://www. washingtonpost.com/wp-dyn/content!articl~/2008/06/06/ AR2008060603082 JJ... 6/23/2008 ----." .. .._._ "M"__..__.__ ._- ....- @ Reactions Are Mixed On Verizon's Day-Old $28: 1 Billion Acquisition Of Alltel Page 2 of2 change, and there's no word on what"will happen with Alltel's poptilar My Circles option that provides 0 unlimited calls to 5, 10 or 20 numbers for a monthly fee. Verizon Wireless doesn't have that option, but AP points out that Verizon customers actually pay slightly less on average: $51.40 a month versus A11tel customers that pay $53.64 a month on average. But of course, the big concern is competition. Dan Yahro in Bishop, Calif., close to the border with Nevada, has two options for wireless service: A11tel and Verizon Wireless (NYSE: VZ). Now that one is buying the other, he wonders what will happen, AP reports. __ Impact on Sprint: There's not much here, but a 10t of stories written yesterday, asked the question how does the merger affect Sprint (NYSE: S), and what should the struggling carrier do now? The WSJ wrote: "For once, Sprint should consider doing nothing. Or rather, taking care of its current business." There's rumors surfacing that it could merge with T-Mobile, or spin-offNextel to SK Telecom (NYSE: SKM), and possibly with the Verizon-Alltel match-up, those will be considered seriously, however, WSJ notes: "Sprint?never a talented multitasker?has too much on its plate right now to take on a merger. 11 Related Is Verizon Wireless Buying Alltel For Its Assets Or For Its Culture OfInnovation? Verizon Wireless To Acquire A11tel For $28.1 Billion Register for our EconAds seminar. June 3rd, at the New W orld Stages in New York City. Covering the economics of online advertising. 0 <Q 2008 ContentNext Media Inc. I I I Ads by Google ! 110 Rules for Stomach Fat , l l i I Drop 9 Ibs of Stomach Fat every 11 Days by Sticking with the 10 Rules. I , www_FatLoss4ldiots.comlStomachFat I I I The 2008 BMW M5 I More bells arid whistles - See What's Inside - Official BMW Site. www.washingtondcbrrn.v.com , I i Premier DC Dentist ! I I See our smile gallery and see what we can do for you. .Smlle Makeovers ! I www.amazlngdentistry.com I --.--..-.---.---..---.---.---' 0 hl1Jl://www.washingtoopost.com/wP-dynJcontentIr3)e/2008l06/06/~OO8060603082 ~"'. 6fl312008 _h. -..-+ ---- ---. - Worst of the Week: Odds and ends - RCR Wrreless News Page 1 of2 WJtcl. .. - . .. . ..... ... : . .. -' .,.., . . : -, -., ... .. : . - - . . . -' , - . ., . --.... - ,... .' - .. "..';:, :': . ~ ..,: ..,' - - .' " ...r... .. .. . .. ,. . ' . . . '. .;' ,. ,. . .,. '-. RCR. ....... .....essNews Worst of the Week: Odds and ends By Dan Meyer Story posted: May 8, 2008 - 1 :08 pm EDT Hello! Advertisemenb .. And welcome to our Thursday column, Worst of the Week. There's a lot of nutty stuff that goes on in this _____. industry, so this column is a chance for us at RCRWirelessNews.com to rant and rave about whatever rubs us the wrong way. We hope you enjoy it! And without further ado: So, the rumors were flying thick and fast this week surrounding embattled No.3 operator Sprint Nextel. In a nutshell: -German telecom giant and presumed David Hasselhofffan Deutsche Telekom was looking at acquiring Sprint Nextel in an attempt to bolster its U.S. presence beyond No.4 carrier T -Mobile USA, and because DT found some extra change in between its pillow cushions to pay a nice premium on Sprint Nextel's roughly $25 billion market capitalization; -Sprint Nextel was looking at spinning off its Xohm WiMAX business into a separate company funded by cable companies, Google and Intel as well as cash raised from recent blood donations by some Sprint Nextel executives. (App~rently blood from an executive is worth a lot more than from slobs like you and me.) -Wanna-be public-safety savior Cyren Call was trying to scare up investments so it could buy Sprint Nextel's iDEN network, which despite recent struggles still serves some 13 million customers, including millions of public-safety workers; -And Sprint Nextel was considering changing its name to "Nothing over $5 store: Everything must go!" (This part is not factually correct, but since we are talking about rumors, I felt like it could be as legitimate as the others especially if I mentioned that unnamed sources deep within Sprint Nextel told me the story.) As of yesterday afternoon only one of these rumors - the spin off of its WiMAX business - had come to fruition. But that doesn't mean the other three are not still possible. (Especially the last one, which would be the most awesome.) So as a service to those who are still reading this column, I will provide some useful information on the chances of the three other rumors becoming reality as well as small comments on each. (And please remember, this is only an exhibition and not a com.petition, so as always, no wagering.) 1. DT buying Sprint Nextel: This deal just does not make any sense. Sure DT would vault past AT&T Mobility and Verizon Wireless as the No.1 carrier in the U.S., but after watching Sprint struggle after acquiring Nextel, I envision similar challenges in trying to put together T -Mobile with Sprint Nextel. And that doesn't even take into account the three network technologies that would be involved. Sure Sprint Nextel's stock plunge makes it ripe for plucking at a bargain price, but from my point of view this just seems like a bad idea. As such I am putting the chances of this happening at around 99%. 2. Cyren Call acquiring Sprint Nextel's iDEN biz: Now this makes sense to me. This rumor has been circulating in one form or another for several years and tends to makes sense. Public safety is already a big customer on the iDEN network, so why not kick off all those pesky high-ARPU business users and decfJCate the network to public safety? Sure there are coverage issues that would need to be addressed and there is sbll some question as to whether Sprint Nextel's iDEN network could really support public safety in an emergency, but I figure the public-safety market is a perfect place to experiment - so. why not give it a by? Having said all of that and gMng my glorious support to such a plan I would put the odds of this happening at about 0.13%. 3. Sprint Nextel changing its name: This is a no-brainer. I mean, what does Sprint or Nextel have to do with wireless? I believe the combination of the Sprint and Nextel names is the true reason behind the carrier losing customers by the millions, as most level-headed people like myself see those names together and say: "Why am I getting my wireless service from a company with such an un-sexy name? I'm switching to AT&T Mobility or Verizon Wireless or T-Mobile USA, because those are sooo much cooler." But, change that name to "Nothing over $5 store: Everything must go!" and http://www.rcmews.comlapps/pbcs.dWarticle? AID=/20080508/FREE/97857 5404/1002/0... 5/15/2008 - .- . ._-_.- (p --. .~- -..- _.-- Worst of the Week: Odds and ends - RCR Wireless News Page 2 of2 there will be a stampede to your door. OK! Enough of that. Thanks for checking out this Worst. of the Week column. And now, some extras: -One side note on the .disappearance of the Xohm brand after Sprint Nextel melds its WiMAX business with Clearwire: What happens to Barry West's "XOHM" license plate? Not sure if a bidding war would erupt on eBay, but I'd be willing to put up a couple of bucks for that piece of history. -Maybe a little off the wireless topic, but reports this week that Take-Two sold more than $500 million worth of its "Grand Theft Auto IV" console games during its first week of sales was too impressive to let slip by. $500 million in sales in one weekl Hard to believe the mobile space is not able to even tap into a portion of that revenue stream. (Full disclosure: Some of the RCR Wireless News staff may have contributed to the $500 million in sales.) -Fast-food powerhouse Taco Bueno said it will expand its Cellfire-powered mobile coupon offering from its initial trial in the Dallas area to all of its 180 locations in Arkansas, Indiana, Kansas, Missouri, Nebraska, New Mexico, Oklahoma and Texas. The current coupon offering is for a Beef Muchaco or Chicken Potato Burrito for 99 cents. In its press release Taco Bueno noted: "Cellfire offers our guests the convenience and value of getting discounts without the hassle of clipping and remembering paper coupons: All we can think is who besides Mike Dano would take a paper coupon into a fast-food Mexican joint? -And finally, we received a press release from Clear Channel Outdoor's Clear Channel Branded Cities division highlighting a new partnership with Miller Brewing Co. to become the "Official Beer of Westgate City Center," which for those not in the know is in glorious Glendale, Ariz. "But, how does this impact me?" you may be asking. Well, as part of being named the official beer of a shopping center, Miller will use all sorts of advertising flack, including a "Bluetooth application active throughout" the development So, next time you visit the Westgate City Center make sure to keep at least one hand free to check out all the cool Bluetooth spam telling you to have another beer. Looks like we will be booking a business trip to check it out in the near future. I welcome your comments. Please send me an e-mail at dmeyer@crain.com. PRINTED FROM: http://www.rcrwirelessnews.com/apps/pbcs.dlllarticle?AID=I2008050BIFREE/978575404/1 OO2lirc&template=printart Entire contents @ 2008 Crain Communications, Inc. http://www .rcrnews.comlapps/pbcs.d1l/artic1e? AID=/20080508/FREE/978575404/1 002/0... 5/15/2008 ~ Q:> --- -.-.----.-------..--.. .- Financial ratings wrap-up: Sprint Nextel, Nortel Networks, SBA Communications and mo... Page 1 of2 0 ':II: )}I RCR..,.'.....iielessNews Financial ratings wrap-up: Sprint Nextel, Nortel Networks, SBA Communications and more By Kristen Beckman Story posted: May 7, 2008 - 5:59 am EDT The following list includes ratings changes and financial information for wireless companies announced Advertisemenb this week by investment-banking and financial-services firms. Carrier -Lehman Brothers lowered its estimates on Virgin Mobile USA to 39 cents from 46 cents for 2008 after the company reported in-line first-quarter results. -Standard & Poor's Ratings Services affirmed its B- corporate credit rating on iPCS and revised its outlook to stable. "The stable outlook revision reflects the resolution of a number of operational and financial issues between Sprint Neldel Corp. and iPCS, which dampened iPCS' 2007 operating performance,. said Standard & Poor's credit analyst Susan Madison. -Standard & Poor's Ratings Services lowered its corporate credit rating on Sprint Nextel to BB from BBB- and removed its ratings from CreditWatch with negative implications. The outlook is stable. "The downgrade is based on our 0 assessment that Sprint Nelde/'s business risk profile is no longer supportive of an investment-grad~ rating given its deteriorating operating performance and lack of visibility in the wireless business, along with increased financial leverage . due largely to declining EBITDA,. said Standard & Poor's credit analyst Allyn Arden. -RBC Capital Markets lowered its price target on Embarq to $49 from $54 on changes in DCF valuation. Morgan Stanley raised its 2008 estimates on the comp~ny to $4.81 from $4.14 on lower expenses. Lehman Brothers raised its 200.8 estimates on the company to $5.24 from $4.81. Credit Suisse First Boston raised its estimates on the company to $5.03 for 2008 and to $4.73 for 2009 but lowered its price target to $42 on worsening access line trends and a higher cost of capital. -FBR Capital Markets raised its price target on Ntelos to $36 from $34 after the company reported solid first-quarter results that beat estimates. Lehman Brothers raised its 2008 EPS estimate on the company to 90 cents from 83 cents. Handset and infrastructure vendors -RBC Capital Markets raised its price target on Apple to $220 from $200 on expectations of iPhone upside. -Lehman Brothers lowered its price target on Nortel Networks to $15.50 from $17 after the company reported first- quarter results. It also lowered its EPS estimates to 92 cents from $1.03 for 2008 and to $1.23 from $1.33 for 2009. R.W. Baird increased its 2008 estimates to 40 cents on revenues of $11 billion from 24 cents on revenues of $1 0.7 billion. Its 2009 estimates increase to 75 cents on revenues of $11.2 billion from 67 cents on revenues of $11.1 billion. Credit Suisse First Boston revised its estimates on Nortel to 47 cents on revenues of $11.13 billion from 37 cents on revenues of $11.28 billion for 2008 and to 69 cents on $11.28 billion from 68 cents on $11.51 billion for 2009. -R. W. Baird raised its estimates on A1catel-Lucent after the company reported first-quarter results. New EPS estimates for the company are 54 cents rather than 46 cents for 2008 and 74 cents rather than 68 cents for 2009. Other -Oppenheimer raised its estimates on Powerwave after the company reported encouraging first-quarter results. New estimates are a return of 11 cents rather than a loss of 4 cents for 2008 and profit of 23 cents rather than 18 cents for 2009. RW Baird raised its estimates on the company to 14 cents from 3 cents for 2008 and to 30 cents from 20 cents for 2009. 0 -RBC Capital Markets raised its price target on American T wer to $50 from $48 and adjusted its estimates on the company following solid first-quarter results. http://www.rcmews.COm/apps/pbcs.dlJlartiCle?W0080507IFREFJ99308069111028/F... 5/12/2008 ~ 0 Speculation intensifies over Sprints future By JASON GERTZEN The Kansas City Star Posted on Man, May. 05, 200810:15 PM Split-up and spinoff options, possible takeovers and other deal talk engulfed Sprint Nextel on. Monday as company leaders ponder moves to stabilize Kansas City's largest corporate employer. Rampant speculation, along with a development that definitely threatens Sprint with the loss of some 800,000 subscribers, swirled one week before new Sprint CEO Dan Hesse isto stand before his shareholders for the first time at an annual meeting in Reston, Va. Sprint shares edged higher early on renewed reports that Germany's Deutsche Telekom was pondering an offer to take over the Overland Park wireless company. Later in the day, Sprint shares shot higher, closing up nearly 11 percent, amid reports that Hesse could cleave the Nextel side of a company troubled by customer defections and uncertainty posed by legal setbacks. Meanwhile, expectations are growing that Hesse soon will announce a new multibillion-dollar joint venture with Comcast, Time Warner Cable, other cable companies, and possibly Intel and Googl . All the partners would chip in for an effort to build a national high-speed wireless network using WiMax technology. "We don't comment on rumors and speculation," said Leigh Horner, a Sprint spokeswoman, when asked about reports appearing in The Wall Street Journal and the German publication Oer Spiegel. One certain development came when Qwest Communications International announced it was 0 dumping Sprint for rival Verizon Wireless. The Denver-based local phone company will begin shifting its wireless customers from service linked to Sprint over to Verizon. Qwest signed more than 800,000 subscribers for its brand of wireless service running over Sprint's network. Executive discontent grew, though, over limitations that left them without some of the most popular phones and features. The new five-year arrangement with Verizon will allow Qwest to sell a much broader lineup of phones and high- speed data services. "It's attractive to Qwest, because we will have the same plans and devices as those offered by Verizon Wireless," said Nicholas Sweers, a Qwest spokesman. "It is our intent to aggressively market and sell Verizon Wireless beginning this summer." Qwest's contract with Sprint runs through early 2009, so it will be business as usual for Qwest's wireless customers until the transition is complete. T -Mobile USA is a distant NO.4 in the U.S. wireless industry. If the company owned by Deutsche Telekom, however, can mix its nearly 29 million subscribers with Sprint's nearly 54 million, the new venture will surpass both AT&T and Verizon. German Finance Minister Peer Steinbrueck on Monday dismissed the possibility of a Deutsche Telekom purchase of Sprint as a rumor, according to a Reuters report. The German government is a major stakeholder in the global conglomerate, which is looking for international expansion opportunities. A Sprint deal, however, would have to overcome challenges, including U.S. antitrust approval and foreign buyer concerns. Melding multiple network technologies also could be an issue, said Matthew Thornton, an analyst at Avian Securities. New reports surfaced late Monday that Sprint was considering the sale or spinoff of its Nextel division, essentially further undoing the disappointing 2005 deal that combined the companies in the first place. 0 ~ I I o I - . 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Q,). ~.~ ~ .l1 ~::i'e.2l ";QJ 2li ~ e ~ ~.s u l!~ 8 8.-B,8-B:::.s ~~ 13.g ~ ~ ~ ~ ~ ~;~-s:g~fl ~~ ~~ i::-a~l.; s ~~~~~ ~'r~~~r~ I O ~ . 2.~o.:;::: :OcG~.~QJ::E ~ QJgkcG':g~~ '~81;j~:JlbO~ctI- ~ ' e= ~ ~ ~ al fl <.>Eo<..s == <!l S 1'>.,8 a ell ~ QJ QJ", 0"<:: ;:."S 0 a .p _ ~ f , SPECTRUM HANGOVER - RCR Wireless News Page 1 of2 0 RCRWiMessNews SPECTROMHANGOVER Carriers' binge on spectrum assets bring competitive concerns By Jeffrey Silva Story posted: April 26, 2008 - 5:59 am EDT WHILE THE DOMINANCE of AT&T Mobility and Verizon Wireless in the 700 MHz auction has renewed Advertisemenb debate about whether a spectrum cap should be reinstituted, it appears concerns may have been overstated about the number of markets where the nation's two largest cellular operators now exceed the Federal Communications Commission's new standard for detennining when a carrier's spectrum holdings in a given market could pose an anticompetitive threat. "The decision to eliminate spectrum caps by the FCC under Chainnan [Michaeij Powell is proving highly iIIconsidereo," stated House telecom subcommittee Chairman Edward Markey (D-Mass.) at an April 15 hearing on 700 MHz auction results. .Spectrum caps had ensured that incumbents couldn't gobble up all of the available spectrum and effectively box out would-be competitors from reaching the market. And the so-called 'spectrum screen' of 95 megahertz that has substituted for the original cap has been blown away in this auction by AT&T and Verizon in 8 of the top 10 markets, and 17 of the top 25 markets, where that amount of spectrum has now been exceeded." Violation overblown? 0 However, based on interviews and investment research data, A T& T Mobility and Verizon Wireless do not appear to have surpassed the FCC's 95 megahertz spectrum screen in as many markets as Congress and others have suggested as a result of their 700 MHz winnings. Still, there are solid indications the two carriers do exceed the 95 megahertz spectrum in . perhaps more than a dozen large and small markets. One estimate had A T& T Mobility and Verizon Wireless ~ which accounted for the lion's share of the record $19 billion in the 700 MHz auction ~ now exceeding the 95 megahertz-per-market screen in 38 of the top 100 U.S. markets. The screen, which triggers closer scrutiny for possible competitive harm in local markets, was applied at a higher level in the FCC's approval of AT&T Mobility's purchase of Dobson Communications Corp. last year. Prior to the AT&T Mobility-Dobson ruling, telecom regulators used a 70 megahertz spectrum screen in analyzing proposed mergers. The screen was raised to 95 megahertz because the agency decided to factor 700 MHz spectrum into the equation. The FCC does not count advanced wireless services and broadband radio service frequencies toward the new spectrum screen because spectrum in both serviceS is not significantly available throughout the country (due to government relocation and band realignment issues) at this time. However, the FCC can still examine AWS and BRS spectrum holdings on a case-by-case basis in situations where the 95 megahertz-per-market limit is exceeded. Screen V5. cap The spectrum screen is not as rigid in application as the 45 megahertz spectrum cap approved by the FCC in 1994 during the Clinton administration. The spectrum cap was later raised to 55 megahertz before being eliminated in 2003. But whether AT&T Mobility and Verizon exceed the 95 megahertz spectrum screen in fewer markets than policymakers initially believed is not apt to dampen policymaker's interest in revisiting the spectrum cap. "The issue is the same regardless," said Colin Crowell, an aide to Markey. "What is the point of a 'spectrum screen' (however calculated) if it does not apply to spectrum acquired at auction, only for spectrum acquired through a merger? Second, why shouldn't AWS count? If it is because it is encumbered, then will it apply when it is not? And if it is applied and counted later, then how do you then force divestiture right after someone has finally cleared the spectrum to make it useful?" "As a result," Crowell said, "this wouldn't change Chairman Markey's concem ~ it would only heighten his concern that 0 the so-called 'spectrum screen' has essentially been rendered meaningless." Consolidation impact http://rcmews.comIapps/pbcs.dllIarlicle?AIIFI2008@UBI236962331/1 Oll&templa-... 5/2/2008 SPECTRUM HANGOVER - RCR Wireless News Page 2 of2 :0 House Commerce Committee Chairman John Dingell (DMich.) also suggested consolidation in the wireless industry bears more examination in the aftermath of the 700 MHz auction. "[S]hould we be concerned that no new entrant for broadband services emerged from the auction?" asked Dingell at the April 15 hearing. "Should it be a matter of concern that the nation's largest carriers came away with the most spectrum? How should this increase in spectrum consolidation guide our discussions, if at all?" Michael Copps, one of two Democrats at the GOP-Ied FCC, stated in written testimony that the 700 MHz auction, market power wielded by the two largest wireless voice and DSL providers - AT&T Inc. and Verizon Communications Inc. - I and other factors "underscore the damage that the commission's decision to eliminate the spectrum caps has wrought" I The 1993 law that created spectrum auctions warned against an "excessive concentration of licenses" and called for "disseminating licenses among a wide variety of applicants." To date the FCC's spectrum screen has been applied only in the context of wireless mergers, even though top mobile- I phone carriers have accumulated significant spectrum assets in auctions. ! "The FCC has made no determination on whether the screen should be applied beyond a merger,'" said an FCC ! spokesman. "The FCC always takes into consideration new information and industry trends that may impact the marketplace." PRINTED FROM: http://www.rcrwirelessnews.comlapps/pbcs.dlllarticle? AID=/20080426/SUB/236962331/1 011 &template=printart Entire contents @ 2008 Crain Communications, Inc. 0 - 0 http://rcmews.comIappslpbcs.dJl/article?AJD=o@26/SUBI23696233111011&templ'-... 5/2/2008 --_.. - ..... .._------- www.kansascity.com I 03/06/2008 I Analysts say T -Mobile may acquire Sprint Page 1 ofl 0 S Kan5asCiti~om . Back to web version : Thursday, Mar 6,\ : Posted on Thu, Mar. 06, 2008 Analysts say T-Mobile may acquire Sprint By DAVID HAYES The Kansas City Star Sprint Nextelmay be a takeover target, according to one of the nation's largest investment banking firms. Deutsche Telekom, owner ofT-Mobile and the world's sixth largest phone company, may consider acquiring Overland Park-based Sprint to block a price war in the mobile phone industry, analysts for Merrill Lynch said today. The Wall Street firm said Sprint's operational problems and shaky position in the U.S. wireless industry may force the company to cut prices even further to attract customers, "In such a price war scenario, we think T-Mobile would face the most pressure, and Deutshe Telecom would see the increased urgency to drive market repair," according to the firm's report. T -Mobile generally is considered to be the low-cost altemative among the top five U.S. mobile phone companies. Last week, Sprint introduced an unlimited voice and data wireless plari that undercut other U.S. companies. A Deutsche acquisition is possible now because of Sprint's share price and the weakness ofthe U.S. dollar, Lynch said. Shares of Sprint closed Wednesday at $7, and have fallen more than 46 percent since the beginning of the year. 0 Shares were .down 1.4 percent in pre-market trading. Lynch, which advises its clients to sell Sprint shares, said it is not aware of any acquisition discussions. Based in Germany, Deutsche Telekom has about 120 million subscribers worldwide. - __.___.___._M_'_" dhaves@kcstar.com @ 2007 Kansas City Star and wire service sources. All Rights Reserved. http"/Iwww kansascity.com I 1 0 1 http://wwwokansascityocoml3821v-printlsIDry/51940(i? 3/6/2008 Big 3, private tower firms all likely keen on T-Mobile USA tower sale - RCR Wireless N... Page 1 of 1 0 RCRWdclessNews Big 3, private tower firms all likely keen on T -Mobile USA tower sale By Matt Kapko Story posted: March 2,2007 -1:58 pm EDT =~~~,~~=~ T-Mobile USA Inc. indicated that it is interested in selling anywhere from 3,500 to 5,000 of its towers in AdvertisementJ the United States-a sale that could bring upwards of $1 billion to the NO.4 carrier as it continues its plans to deploy 3G services on recently acquired spectrum. In a conference call for its annual financial report yesterday, the carrier's German-based parent company, Deutsche Telekom, indicated that it has numerous cost-cutting plans in place to help it reach its goal of saving $2 billion this year and up to $5 billion in costs by the end of the decade. Along with numerous other assets the company is considering selling, it said its towers in the United States do not fit its current strategy. 'We've been saying all along that T-Mobile should consider selling its towers," said Mark DeRussy, an analyst at Raymond James & Associates. 'Considering T -Mobile wrote a pretty big check for the last auction, this could help pay for that." T-Mobile was the top bidder in the Federal Communications Commission's spectrum auction that concluded last summer. The carrier is planning to use the spectrum in its upgrade path to 3G, but it could still be a year or so before the network comes online. 0 "This is the first time T -Mobile has said their towers aren't strategically located and that they're willing to sell them," DeRussy said. "I think all three of the public guys are going to want a front seat at those negotiations," he added, referring to the big three tower companies: Crown Castle International Corp., American Tower Corp. and SBA Communications Corp., which together own roughly 50,000 of the 80,000 towers in the United States. "The more provocative possibility is you've got a small private tower company (Global Tower LLC.) backed by a very large private-equity firm that has roughly 2,000 towers. If they were able to do this deal, they would have tremendous scale. It could provide a platform for that company to think about going public," DeRussy said. "I wouldn't be surprised if there isn't already a book circulating out there,' he said, adding that T -Mobile USA has been putting other carriers on its towers recently, which would make it more valuable to a potential buyer. "The opportunity to purchase a portfoliO of this magnitude doesn't come along every day or every year," he said. "I think it's got the potential to have a significant impact on the tower sector in the next six to 12 months. It further shows that carriers are willing to outsource more and more oftheir infrastructure." PRINTED FROM: http://www.rcmews.com/appslpbcs.dlllarticle?AID=/20070302lSUBI70302007/1 012/free&template=printart Entire contents @ 2008 Crain Communications, Inc. 0 http://www.rcmews.COmlappslPbcS.dlllartiCle?AID~~OVSUB/70302007/1 o 12/free&L.. 2/8/2008 -. - - -- - Wireless Spectrum Auction Raises $19 Billion - New York Times Page 1 of2 . " 0 elJc ~ClU !lork.l;"nne.~ 'R'.TOR..RISIDLY FORMAT. nytlmes.com SP:tNSOfiSl B'l' ' , March 19, 2008 -700 MGH-r2- Wireless Spectrum Auction Raises $19 Billion By STEPHEN LABATON WASHINGTON - The government announced on Tuesday that it had closed the most lucrative government auction in history as wireless companies bid more than $19 billion for the rights to radio spectrum licenses. In the coming days, the Federal Communications Commission is expected to publish a list of the winning companies. The major participants included AT&T, Verizon and Google, although many experts saj.d they did not expect Google would bid much more than the minimum reserve price of $4 billion for one of the more attractive groups of licenses. The spectrum licenses are being surrendered to the government by broadcasters as they complete their conversion to digital television by early next year. The licenses are coveted because they will provide the winners with access to some of the best remaining spectrum - enabling them to send signals farther from a cell tower with far less power, through dense walls in cities and over wider territories in rural areas that are now underserved. At the same time, the major industry players are preparing for the continuation of an explosive surge in consumer interest in wireless devices offering high-speed Internet. That consumer demand fueled the auction. While Google was not expected to post a winning bid, it has already achieved an important victory by influencing the auction rules. The commission forced the major telephone companies to open their wireless networks to a broader array of telephone equipment and Internet applications. It remains to be seen whether a variety of technical and regulatory issues can be resolved to make the promise of more open networks a reality. In a telephone conference call with reporters, Kevin J. Martin, the chairman of the commission, appeared delighted that the auction was the largest in .. .... . - government history and would yield nearly twice as much as budget officials in Congress and the administration had estimated. He predicted that the requirements that had prompted the major wireless phone companies to commit 0 themselves to opening their networks to more kinds of devices and applications would ultimately lead to greater innovation. hltp:/lwww.nytimes.c0mJ2008/03/19/techn010GY/1@tml?]'''1&ore1'=Slogin&rei=medi... 3f21f2008 - . -- Wireless Spectrum Auction Raises $19 Billion - New York Times Page 2 of2 .~.. ," 0 "This will be significant from a consumer perspective and also in assuring that innovation can occur on the edges of the network and get into the hands of consumers as quickly as possible," Mr. Martin said. Still, experts predicted that the auction would probably not lead to greater competition in the wireless industry, which has been consolidating in recent years. The best licenses and the construction requirements imposed on the winners are expected to cost billions of dollars, and the commission rejected requests to tailor the rules to encourage significant bids from rivals to the dominant wireless players, notably V erlzon and AT&T. While the auction will yield billions of dollars more than estimated, it fell short of hopes that it would establish new networks for public safety organizations. A group of licenses known as the D-block was unable to attract the minimum required bid. ~, The rules for the D-block were written in response to government reports 'i documenting how incompatible wireless devices had led to considerable confusion during the terrorist attacks of Sept. 11, 2001, and the response to natural disasters, including Hurricane Katrina. .~ The D-block licenses were to be shared by private <;ompanies and a group of 0 public safety organizations. It is likely that the rules for those licenses will have to be rewritten and another auction held for them. ;\. At the conclusion of the auction, Representative Edward J. Markey. chairman of , the House subcommittee on telecommunications and the Internet, announced that he would hold a hearing on the D-block auction and how the rules might be rewritten. "The wireless auction just completed has successfully begun the process of opening up the u.S. marketplace for wireless devices and applications," Mr. Markey said. "The subcommittee's inquiry will be done with an eye toward ensuring that in any overarching plan to fulfill public safety objectives, the private sector can operate wireless networks commercially while simultaneously fulfilling an important role for first responders." Cooyriaht 2008 The New York Times Comoany uPrlvacyPoiicy rSearch '.Corrections I Rsst I First Look I Help I Contact Us 'I Work for Us..1 Site Map - - 0 GY http://www.nytimes.com/2008/03/19/technology/19fcc.htm1?_r= 1 &oref=slogin&ref=medi... 3/21/2008 0 ,"Search The Team . Editor: Darrin Olson I Emaill Posts Contributing Editors: Nino Marchetti I Posts Conner Flynn I Posts Shane McGlaun I Posts Reuben Drake I Posts Article Archives Femto to Wipe Out WiFi V oIP Posted in Mobile Phones, News, V oIP by Darrin Olson on January 30th, 2007 0 0 6Y 0 . 0 A recent report by Unstrung Insider shows that 3G home base stations "F emto cells" could pose a market challenge for WiFi V oIP phones in homes and businesses. According to the report, "Ultra-low-cost home base stations that allow wireless users to communicate across any IP access network using a standard mobile handset will challenge WiFi VOIP for dominance in the consumer fixed/mobile convergence (FMC) market. " What this report is referring to is a challenge between phones such as the WiFiFone from Samsung, or one of the iPhone's from Linksys (not Apple) and mobile phones that utilize a more traditional 3G technoloQY which has a much broader coverage area. The Femto cells are basically home base stations, much like a WiFi base station, which are connected to a broadband internet service. Instead of being hotspots for WiFi connections, Femto cells are hotspots for 3G mobile phones. The mobile base stations work just like the large tower base station would, but on a much smaller scale with very low output power designed for small spaces such as apartments or houses. Pico is another 0 name for these small base stations but would have the ability to cover around 30,000 feet. @ 0 The name "pico" is used referring to "small", and in this case "femto" is used meaning even smaller. The purpose of the Femto base station, such as the femt03G from ip Access, is to provide an better signal in homes and offices where the mobile phone signal is poor due to the proximity to towers or just due to the material of the building blocking the signal. Instead of using the traditional tower for access, the mobile phone would jump onto the base station and gain access through the IP access network. The report from Unstrung Insider identified key market opportunities for this technology along with information from companies providing these home base stations, suggesting that the technology would be a viable opponent for companies offering WiFi VolP phones. TAGS: femto, VoIP, wi-fi [8j ShareThis DB I 0 RELATED ARTICLES: Ericsson Introduces Femto Cell Solution Sprint Launches Airave In-Home Cell Coverage 3Com Releases Wireless V oIP Phone Creative WiFi video phone: the future at last? Permalink 0 Q5) From the landowner's perspective... "Why is there all of this interest in my cell tower IAe all of a sudden?" By K n Schmidt June 2, 2008 - In the last few years, landowners with cell tower leases or rooftop cell site leases are being bombarded by inquiries from the lessees and from third parties alike. To the uninformed landowner, the bombardment appears to suggest that there is increased value in the underlying lease agreement. If not, why would all of these third party companies be contacting the landowners? T~A inquiri take the following shapes: IIi Cell Tower Lease Renegotiations- Direct: A tower company or cellular carrier directly contacts the landowner in an attempt to negotiate a reduction in the lease rate. There is often either an implicit or direct threat that failure to negotiate will cause termination of the underlying lease agreement. NY'->;;'::? ~cell Tower Lease Renegotiation -Indirect: The tower company or cellular c r retains the services of a third party optimization company that will attempt to negotiate a reduction on behalf of the carrier for a percentage of the savings going forward. These companies can collect upwards of 30% of the savings. The optimization firms typically use high pressure sales techniques from salesmen who have little to no experience in wireless. Cell Tower Lease Buyouts - Direct: The large tower companies attempt to purchase the remainder interest in the ground lease from the landowner. Typically, these transactions are structured as a purchase of a perpetual easement in exchange for a lump sum of 10 years or more worth of the current rent amount. Cell Tower Lease Buyouts -Indirect for the cash flow: There are a number of companies that were created solely to target the acquisition of the ground leases and rooftop leases. The companies purchase the leases via a fixed term easement or an assignment of lease and a successor lease that kicks in for a defined number of years at expiration of the original lease. III Cell Tower Lease Buyouts - Indirect for takeover of the tower: There are a few companies and individuals who are aggressively contacting landowners with towers who have multiple tenants. These companies are buying the ground rights under the tower under a perpetual easement with the purpose of taking over tRnershiP rights in the tower directly at the expiration of the ground lease. T e companies target towers in difficult zoning areas where replacement or relocation would be impossible. Then at the expiration, they will negotiate a reduced lease rate with the current tenants in an attempt to get the wireless carriers to "encourage" the tower company to silently release the tower. The tower @ companies call them "vultures". Landown rs find inquiri baffling TQe landowners, these inquiries can be bewildering. On one hand, they are b g told that they need to sell or renegotiate their cell tower lease or face termination. On the other hand, they are being solicited with offers for 10 years or more of rent for the remainder rights to the lease. One ear hears there is a threat to the future of this income; the other hears that it must be safe for at least 10 years. As you might expect, the truth is somewhere in between. There are a number of reasons why landowners are being solicited so heavily. First, the tower companies and wireless carriers are trying legitimately to extend their cell tower ground leases and rooftop cell site leases. This is a necessity for any industry that has relied primarily on leases rather than the acquisition of property for their core network assets. If you have read any of the earnings calls for the public tower companies or read t~nnual or quarterly reports, you will see frequent reference to the percentage o erlying ground leases for their towers that are at risk of expiration. You will also see frequent discussion of how "successful" their lease buyout programs have been. In essence, the market is questioning how future revenue (partially the basis for the stock price) can be attributed to towers where the ground lease is not secure. The tower companies need to document that these assets that sit on leased property are secure for a long period of time. In their quarterly and annual statements, there are charts showing what percentage of their ground leases are set to expire in 1-3 years, 4-7 years, etc. What these charts don't show is what percentage of the company's revenue is subject to expiration within 1-3 years, 4-7 years, etc. If it is assumed that mature leases are more likely to have short remaining lease terms, and we assume that mature towers have greater per tower revenue, should the question not be how much revenue is subject to risk if ground leases are not renewed? We surmise the answer is that the tower companies would prefer reporting percentages of leases rather than plJ,ntage of revenue. This is not to s at the tower companies aren't targeting high revenue leases with the buyout offers aggressively. This occurs at some public tower companies more @) aggressively than others. SGndIY, the tower companies and cellular carriers are now finding themselves b ned down by the poor management of site acquisition contracts in the past. History is replete with examples of poor site acquisition where the objective was to build out a new market as quickly as possible regardless of how high lease operating expenses were. These examples are still occurring even as new markets are being launched today. Rather than focus on lease costs, the target was always speed to market. Many older ground leases or rooftop leases have 5% or higher escalators, which over time significantly increases the cost of operating the site. These land leases or rooftop leases are simply untenable now due to the escalated cost of the lease. In these cases, the leases should be either renegotiated or terminated provided that an alternative site(s) can be found. As an aside, our company is seeing increased use of capitalized leases for new leases where the landowner is given a lump sum up front for a 25 year lease. These lump sums are far less than what the carrier or the tower company would have paid during the course of the lea~e. Third, the third party buyout companies are actively attempting to purchase leases. With three main lease buyout companies and numerous smaller entities actively trying to grow their PDliO, competition for lease buyouts h eached a feverish high. These companies are using high pressure sales techniques because they have to if they want to compete for the landC'u''ler's attention. These techniques can often include trying to scare the landowner into selling. Alternatively, the buyout companies attempt to mislead the landowner by suggesting that a wireless carrier is interested in leasing their property when in fact there is none. We suspect that all of the three main lease buyout companies have no intentions of holding on to these leases; they are simply "churning and burning" to acquire as many leases as possible to resell at higher values to equity firms and investment banks who will then securitize them and resell to less intelligent buyers. This creates motivation to buy more and more leases and a "gold rush" effect. Fourth, some leases just aren't needed anymore or aren't profitable. Truth be told, in most cases landowners are poorly informed. This can work for and against the tower companies and wireless carriers. In some cases, there are legitimate rans why a ground lease is too expensive. Steel in the Air regularly consults w andowners who have completely unrealistic expectations of what their lease is worth. They value their lease by finding out what other landowners get but fail to assess why those landowners are in better positions than they are. @ Many towers that were built 5, 10 or 20 years ago are still single tenant towers, but the leases have escalated to a point where the ground lease is significantly higher than average. In some cases, it would be cheaper over the long run to terminate t2isting lease and rebuild the tower at another location nearby where the la owner is more reasonable. Fifth, in other cases where the tower company or wireless carrier asks for a reduction in theirlease, they are simply trying to improve their bottom line even if the tower is highly profitable. As mentioned previously, here once again the landowners are typically poorly informed. The tower company, wireless carrier, and in particular, the lease optimization firms often rely upon misleading information or in some cases, completely false statements of "doom and gloom" about the prospects of the wireless industry. Sixth, the merger of some of the large wireless carriers has in fact created redundancy in the carrier's combined networks, making some network sites unnecessary. Unfortunately, the carriers and lease optimization companies have seized upon this opportunity to create fear in the landowner's minds and make ~ question their resolve. Some landowners who failed to negotiate have lost I s. Others who agreed to reductions never had any risk at all. Once again, the Ian owner's ignorance is targeted. Lastly, there are a number of opportunists out in the market who are identifying particularly valuable tower assets and endeavoring to take over the land rights underneath them. At a minimum, they will be able to negotiate favorable lease rates going forward. Alternatively, they will attempt to own the tower. Opportuni ts flourish Some of the opportunists have taken to making the landowners a "partner" in the future income of the tower if the opportunists are successful in taking over ownership rights of the tower. Others are simply taking the upside from uninformed landowners who do not realize that their lease can be renegotiated for a higher premium. Amidst all of these inquiries, the landowner is left to determine the value of their lease alone and they typically do a fairly poor job at it. They typically research the internet for anything they can find on cell tower leases. They find numerous stories about leases on public property. Then they contact their aBey or CPA who more often than not k. little about cell tower leases. They contact their neighbors with towers whose lease is typically not representative of @ value. Meanwhile they are being repetitively contacted by the lease buyout firms, the tower company, the wireless carrier, the optimization firms, and the opportunists who badger them to make a decision by a certain drop dead date. (0 these drop dead dates are almost never real). Of course, the landowner can be and often is a benefactor in these transactions. Lump sum purchase prices for cell site leases are higher than in the past. Some landowners have been able to negotiate a new lease rate starting now even though their lease does not end for another 10 years. Some landowners have sold their lease and put the money to better use. Others desperately needed the money from a buyout and had no other place to turn. Steel in the Air, Inc. believes that similar to the housing market, that there may be "irrational exuberance" in the lease buyout market currently that is supporting pricing that is not tied to realistic expectations of the wireless industry. If this is correct, perhaps we could be nearing a peak in pricing. Whatever the scenario is, one thing is clear. Landowners should expect to be inundated with more and more offers as time goes by. About the author: Ken Schmidt is President of Steel in the Air, Inc. His company provides guidance to landowners nationwide regarding cell tower lease related issues including cell tower lease buyouts, lease renegotiations, and lease expirations and extensions. 0 0 @ fteel ~!!'ir ' ,.. '" __" ~. ;- ,; ,J, :~~"/'lce ~eSda~ 30~ July :008 - - Steel in the Air For Leaseholders For Tower Owners For Landowners For Municipalities Tower Maps Help & Support Questions? Cell Tower Lease or Cell Site Not~urewhatyouare Lease Buyouts looking for? See our Site Map or Contact Us. CELL PHONE TOWER LEASE BUYOUTS- Recently a number of companies have entered the cell tower lease buyout industry- they purchase the remaining cash flow under a cell tower lease. Some tower is a good one. companies like Global Signal and Crown Castle have been contacting owners as well. The transaction is typically crafted as an exchange of a We can also counsel you as . . to how long your lease will one tIme payment for a lease asSIgnment or a permanent easement on the last and whether or not you landowners parcel in exchange for the rights to collect all future rent are giving up P?tential payments from the cell tower owner. Other companies just purchase an revenue by selhng.. 1 assIgnment of the cell tower lease and a successor ease. Some companies have resorted to "scare tactics" whereby they suggest that technology will make the tower obsolete in the near future. They also sometimes suggest that industry consolidation might shorten the length of Expertise: what we in the industry refer to "90 day" cell tower leases. This is due to We have provided the fact that most agreements are written such that the tower company or nearly 1000 wireless carrier can terminate the cell tower lease without penalty with 90 consultations in the days notice. While it is. true that the cell tower leases can be terminated, it last three years. We is not a common occurrence that they will be. have been quoted in magazines and There are, of course reasons why a landowner might want to sell the newspapers. See what remaining portions of the lease to a company that specializes in this type some of the 1000 plus of transaction. clients say about us on our Testimonials page. First and foremost is the opportunity to get cash out of your asset. These companies often can give a sizable payment when your fmancial . institution would not. The purchasing companies can reduce the risk that Partner Links: anyone lease will be terminated over the purchase of hundreds of leases, Neig~borhood where the landowner could not. Landowners who have attempted to Pr~vIews offe:s a borrow against cell tower leases often find that banks do not loan against umque analYSIS of them due to the 90 day termination rights common in most cell tower housing developments leases. for future home gers. Secondly, depending upon the location and the company purchasing the cell tower lease rights, the offer might be one that the average landowner with a cell tower lease would be hard pressed to turn down. Determining which situation the landowner is faced with, ~ unfortunately requires expert review. Third, in certain situations where a landowner has exposure to 0 termination due to the Cingular / AT&T merger or the Nextel / Sprint merger, the sale of the cell tower leases for a lump sum can eliminate the risk that those companies will terminate the cell site lease. We can help you guage that risk and determine if the sale of the lease is right for you. If you are interested in simply getting a better offer, contact us the details of your lease and any buyout offer you currently have and we will be happy to see if we can beat it. There is no cost to you. If on the other hand, you are interested in getting assistance with whether you should sell your cell tower lease, we can assist. Steel in the Air has consulted with many landowners on cell tower lease purchase offers based on in depth analysis of the landowner's parcel and the surrounding wireless environment. We can assist you with working through the wireless side of the decision and help you determine what you are really selling. We can help ascertain what the real remaining term of your cell site lease will be so that you can figure out the true "present value" of your lease. We can tell you the history of the lease purchase market as well as where we expect it to go. We can help you answer the decision of when the best time to sell is. We have compiled a database of numerous transactions and can tell you trends in this arena. Furthermore, we can determine whether or not you are passing up future revenue that you might not have known about. The standard consultation normally runs 0 around $1000. Please contact us for a free estimate of what a review will cost. Click here to see what many of our satisfied clients have had to say. ([)Copyright 2006 STEEL IN THE AIR All Rights Reserved Experts in Cell Tower Leases For more information feel free to Contact Us 0 (@ itee I i;,d'!ii!:.~h ~ l\i r Cg '!elii""!!!1 H!!!!!ii!%'f; HU!i!'ii;;!i!i;"!~IP~!r1!~I~!,iofions @' 1;% ~':' ,,':;: "" ' , "';s ~e~~ 30. July 2008 .. Steel in the Air For Leaseholders For Tower Owners For Landowners For Municipalities Tower Maps Help & Support Questions? Municipal Cell Phone Tower and Not~urewhatyouare Cell Site Lease Buyouts lookmg for? See our Site Map or Co. ;t Us. Many municipalities and public entities (housing authorities, parks, utilities) currently maintaining numerous cell phone tower leases or water tower cell site leases have been approached by Unison Site own homework. Management, Global Signal, Crown Castle and/or Wireless Capital Partners to sell. For some municipalities, these offers represent an opportunity to get a quick and potentially sizeable infusion of cash without having to issue bonds or increase the tax rate. Some municipalities or municipal governments have sold the rights to the lease income without a full understanding of what they are actually o selling. While Steel in the Air understands that the capitalization of the cell phone tower or water tower cell site leases can be attractive to municipalities Expertise: who are looking to improve their budgets, we can't recommend that We have provided municipalities sell these leases blindly. Nor can we recommend that a nearly 1000 municipality consider the sale of their wireless assets without considering consultations in the ALL of the options. last three years. We have b~en quoted in Steel in the Air provides specific consulting services to municipalities magazmes and who are considering selling their wireless assets. These services include: newspapers. See what s~me of the 1000 plus . Evaluation ofthe cell site lease purchase offer(s) and a comparison clIents s~Y ab?ut us on to what other private and public landowners have received in the our TestImornals page. past from Unison Site Management, Wireless Capital Partners or Global Signal. . · Discussion of arrangements for the purchase of actual cell phone Pa~er Lmks: tower lease or water tower cell site leases and analysis of what the NeIg~borhood municipality is actually giving up. Pr~vIews offe:s a . Review of the expected longevity of the cell phone tower leases or urnq~e analYSIS of cell site leases including specific assessment of the threat of housmg developments termination of SprintlNextel cell site leases or Cingular/ AT&T for future home Wireless cell site leases due to merger consolidation and gers. duplication. · Evaluation of Future Income Potential that the municipality might be giving up by selling its cell site leases. · Discussion of other options which might be available to the (jJJ municipality that could yield 25% -50% more than what Unison or Wireless Capital typically offer. · Counsel and confIrmation from an expert on these types of deals so 0 that the decision makers for the municipality or public entity can be rest assured that they have represented their constituents to the best of their ability. · Solicitation of other offers from other vendors and sources if appropriate. Weare familiar with the various requirements that public entities have regarding public bidding and provide completely confidential consulting services within the confines of your situation. Our consultations are typically offered on an hourly consulting basis with Not to Exceed pricing. The scope is tailored to the number of leases the municipality is considering selling. We normally do not have to visit the subject area to ascertain value of the cell site leases. More importantly, we have references from past public entity clients we are happy to share with you at your request. Please contact us for a free estimate of what a review will cost. Steel in the Air is not affiliated with Unison Site Management, Wireless Capital Partners, Global Signal, Crown Castle, Nextel, Sprint, AT&T Wireless, or Cingular. We simply offer consulting services regarding their cell site lease urchase offers and cell site leases. yright 2006 STEEL IN THE AIR All Rights Reserved Experts in Cell Tower Leases For more information feel free to Contact Us 0 riP 00 0 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 SUBJECT: Schedule EDA meeting DATE: August 6, 2008 INTRODUCTION The Council is requested to schedule an Economic Development Authority (EDA) meeting at 6:00 pm before the August 19,2008 City Council meeting. DISCUSSION Tentative agenda items for an EDA meeting have been identified as follows: 0 1. Letter of Intent Review 2. Purchase Agreement ReviewslUpdates 3. Bruggeman Update 4. Other Business Other items may be added upon request, or the meeting will be cancelled if no new information comes forward on the identified agenda items ACTION REQUIRED Schedule an EDA meeting at 6:00 pm before the August 19,2008 City Council meeting. 0 C I T Y o F @ NDOVE 0 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 SUBJECT: Schedule September Council Workshop DATE: August 6, 2008 INTRODUCTION The Council is requested to schedule a Special Council Workshop for the month of September for a number of miscellaneous business items. DISCUSSION Potential agenda items for a September workshop have been identified as follows: 0 1. Discuss Outdoor Parties/Events 2. Assessment Policy Discussion 3. 2009 Budget Development and 2009 Tax Levy Progress Report 4. Present "draft" 2009-2013 CIP 5. Comprehensive Plan Update Discussion 6. 2008-2009 Council Goals Discussion Other items may be added upon Council request. ACTION REQUIRED Schedule a Council Workshop, suggested dates are Tuesday September 26th or 30th at 6:00 p.m. or another date or time acceptable to the Council. -. 0 C I T Y 0 F @ g NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.U5 TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: Administrator's Report DATE: August 6, 2008 The City Administrator will give a brief verbal update on various items of interest to the City Council and to the residents at the meeting. Listed below are a few areas of interest: 1. Administration & City Department Activities 2. Update on Development Activity 3. Update on CIP Projects 0 4. Meeting reminders 5. Legislative Analysis Upon receipt of the meeting packet, if a member of the Council would like an update on a particular item, please notify me so an adequate update can be made. """- 0 ~ .~ ~ ~ . ,-- ...~:.- --- ~. i....... ~..:.,~,. to""", '.,:.-1. ~- f' i., ( \ \ 'f-\ 1 j ).'* J ...-'" <:J?;~;> '-=,~ -'. ~ ,.,-'~::::"''';r ',. [B] ,-;-;:_1 \t", · ~;:j.:1 ......" ,_..<' ," I> +("-:~.$' """",,:,'1'. /-. ; }~~ .ilI '> " . 0 C i T Y o f' NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 · (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor & Council Members FROM: Jim Dickinson, City Administrator SUBJECT: Supplemental Agenda Item for August 6, 2008 City Council Meeting DATE: August 6, 2008 The City Council is requested to receive the following supplemental information. Consent Items 0 Item #12. Award Bid for Fire Department Tanker Truck (Supplemental) - Fire Discussion Items Item #13. Adopt Resolution Appointing Election Judges for Primary Election (Supplemental)- Administration ~ 0 lJ~.J C I T Y o F 0 NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers CC: Jim Dickinson, City Administrator FROM: Dan Winkel, Fire Chief .h W. . SUBJECT: Accept Bids and Approve Contract to Build New Fire Department Tanker Truck DATE: August 6, 2008 INTRODUCTION As previously approved by the Mayor and City Council the fire department has advertised and received sealed bids for one new fire department tanker truck. DISCUSSION The new tanker truck is a scheduled replacement for an existing tanker truck currently located at 0 fire station #3. The needs for the new vehicle were presented and reviewed by the Andover Vehicle Committee who found the replacement to be warranted. The new tanker replacement cost was included in the 2008 Equipment Bond as requested by staff and approved by the City Council as part of the 2008 Capitol Equipment Program. Two appropriately sealed bids were received by the August 1 st, deadline. The bids were received from the following fire truck manufacturers: General Safety Equipment $ 301, 695.00 Clarey's Safety Equipment/ Pierce Manufacturing $ 308,433.00 Staff would be requesting that an additional $500 be added to the General Safety bid so that a hinged front bumper, center section can be added to make it easier to load and unload hose from a compartment designed to be installed in the front bumper. The total General Safety bid will be $302, 195.00 Also note that staff did an analysis for a requested proposal as part of the specifications and bid process asking manufacturers if there would be a significant savings if the City paid 100 % of the truck costs upon signing the construction agreement. Staff did determine that paying the entire cost was not cost effective and presented an unacceptable financial risk to the City. Staff is recommending that the vehicle be paid for as outlined in the proposed contract with the manufacturer. Staff has also reviewed the savings associated with paying for the chassis as it is 0 delivered to the truck manufacturing facility and is recommending that be done so that the City can save $4,100 from the total bid price from the General Safety bid. 0 BUDGET IMP ACT Funding for the new fire department tanker truck has been included as part of the 2008 Equipment Bond. The bid price did corne in within the staff anticipated costs of approximately $300,000.00. Both of the bids were reviewed and it has been determined by staff that both of the manufacturers will build a vehicle that meets or exceeds the specifications. RECOMMENDATION Staff is requesting City Council approval to accept the bids and also authorize signing a contract with General Safety Equipment to build the new fire department tanker truck. The time of construction for this truck is between 325 and 350 calendar days. The new vehicle should be complete about July 1,2009. R;S:S;U~ Dan Winkel, Fire Chief 0 0 @ 0 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US - TO: Mayor and City Council CC: Jim Dickinson, City Administrator FROM: Michelle Hartner, Deputy City Clerk SUBJECT: Adopt Resolution Appointing Election Judges for Primary Election DATE: August 6, 2008 INTRODUCTION The City Council is required to appoint judges to serve at the Primary Election on Tuesday, September 9, 2008. 0 ACTION REQUIRED Council is requested to adopt the attached resolution appointing judges for the Primary Election, replacing the resolution in the council packet. Thee names have been added to the attached resolution. Respectfully submitted, ( ~ \~c::J1~\~ Michelle Hartner Deputy City Clerk Attach: Resolution 0 0 CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION APPOINTING JUDGES TO SERVE AT THE SEPTEMBER 9, 2008 PRIMARY ELECTION IN THE CITY OF ANDOVER. WHEREAS, the City Council is required by State Statute to appoint election judges to serve at the September 9,2008 Primary Election. NOW, THEREFORE, BE IT RESOLVED that the following are appointed to serve as election judges at the September 9,2008 Primary Election. Precinct # 1 - Hope Lutheran Church Gloria Young, Chief Judge Annette Anderson Donald Berg David Catherson 0 Sharon Cramer Karen Godfrey Carol Moeller Shirley Olson Michael Schilling Richard Snyder Donna Turnbom Precinct #2 - Grace Lutheran Church Gretchen Sabel, Chief Judge Nancy Ahlberg Christine Deggendorf John Johanson Bonnie Lapham Fred Lown Marie Romo Pamela Schilling Precinct #3 - Riverdale Assembly of God Church Phyllis Kieffer, Chief Judge Pamela Anson 0 Elaine Boos Kay Funk Sue McBride Barbara Peters Connie Schultz Michael St. John 0 Precinct #4 - Crooked Lake Elementary School Kelly Danzl, Chief Judge John Catherson Leatrice Cooper Stan Graf Carol Hibbard Mildred Johnson Liliya U stimchuk Precinct #5 - Meadow Creek Church Terry VanNote, Chief Judge Don Ahlberg John Hibbard Jerome Lapham Pat Larson Mary Munson Ginger Nelson Luther Romo Mary Ellen Simcoe 0 Peter Ustimchuk Precinct #6 - Bunker Hills Activity Center Carol Murschel, Chief Judge Susan Beal Dan Frost Albert LaCombe Dan Lehrer Judy Lestina Deborah Mayasich Gerald Nelson Joyce Olson Sandy Roslin Precinct #7 - Constance Free Church Lois Spadgenske, Chief Judge Shirley Beam Nancy Brinkman Kim Halberg Richard Lindmark, Jr. 0 Pat Lindquist Pat Maltzen Larry Mueller Norman Myhre Lisa Nicoski Mary Sullivan 0 Precinct #8 - Andover Christian Church Marie Bourque, Chief Judge Corrine Buftham Julie Haugen Megan Jan Tom Johnson Rachel Kintop Bruce Maltzen John Marek Ashley Young Precinct #9 - Prairie Oak Community Church Julie Trude, Chief Judge Bruce Crane Susan Fanucci Dolores Jeska Peggy Kuntz Patricia Matthies William Obedoza Nancy Posl 0 Lucy Schalwig Patricia Schert Mary White Precinct #10 - Andover Elementary School Brenda Fildes, Chief Judge James Anderson Sharlene Booker Stan Deden Barbara Humphreys Lois Koblitz Linda Nelson Mike Roslin Joellyn Soler Sandra Stewart Adopted by the City Council of the City of Andover this day of . 2008. Attest: CITY OF ANDOVER 0 Michelle Hartner-Deputy City Clerk Michael R. Gamache - Mayor