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Home My WebLink AboutWK February 26, 2003 CITY OF ANDOVER /' '\ , 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 " FAX (763) 755-8923. WWW.CI.ANDOVER.MN.US Special City Council Workshop Miscellaneous City Issues Wednesday, February 26, 2003 - 6:00 p.m. Council Chambers 1. Call to Order 2. Adopt Agenda 3. Private versus Public - Engineering 4. Creation of Storm Water Utility - Update - Engineering , '. , ,~-) 5. Capital Campaign for Community Center - Verbal Update - Administration 6. Rental Housing Ordinance - Draft Ordinance - Planning/Bldg./Fire 7. Land Acquisition - Louden Property Purchase Agreement - Engineering 8. 2002-03 Council GoallWater Utility Radio Read - Staff Update - Public Works 9. Other Business 10. Adjournment , ~/ , Q) CITY OF ANDOVER " '1 ~ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923. WWW.C1.ANDOVER.MN.US TO: Mayor and Council Members CC: John Erar, City Administrator FROM: David D. Berkowitz, City Engineer SUBJECT: Public vs. Private Infrastructure Improvements - Engineering DATE: February 26, 2003 INTRODUCTION One of the Council's 2002 goals is to review the present City of Andover policy of requiring all public facility improvements in new urban developments be contracted for and installed under City contract. The City Council members have had requests from developers to be allowed to design, contract for, and install public facilities including utilities and streets. City staff has been requested to provide a discussion of the pros and cons of changing the present policy. \ "- - ) DISCUSSION This discussion is a continuation of the previous Council workshop, which was held on January 15,2003. Since then, City staff has compiled additional information. . Staff requested information from other cities regarding their current policy. The following questions were asked: Does your City currently have Public or Private installed infrastructure improvements for urban subdivisions? What problems have you encountered with Private installed? What problems have you encountered with Public installed? Attached are the responses to these questions. . A question was raised at the last Council workshop regarding the legality of installing any portion of a project which would be funded by the City trunk fund that would be assessed to adjacent properties when they develop, must this follow the 429 assessment process? The City Attorney found that if any portion of the improvement (such as oversizing of pipe or extra depth of pipe required to serve adjacent areas) is to be paid by special assessment, the Chapter 429 process must be followed. Attached is a memorandum from the City Attorney. . On February 14th a meeting was held with Mike Quigley (116 Group), Byron Westlund (Woodland Development), Horst Graser (Gold Nugget Development) and City staff to discuss concerns that the development community has regarding the current policy. The following concerns were noted: . . The developers are just as concerned as the City is in putting a high quality project 0 together. Mayor and Council Members February 26, 2003 Page 20f3 /~ . The current process duplicates cost in design. There is an opened check book when it comes to City hired consultants to design and administer development projects. . By allowing private improvements the developers can save time by not going through the feasibility report preparation and the 4 week bidding process required through the Chapter 429 procedures. A modified feasibility report would be required to address Trunk Source & Storage charges. . The additional time frame the contractor has to complete the construction. . City required l05% surety bond or letter of credit required to secure a new project is a concern. SUMMARY Either system can work. The majority of other Municipalities would prefer the Public improvement process. With the City contractor, the City's interests come first. In the end the City will own and have to maintain the improvements. The best way to insure quality construction and engineering is to control the purse strings and that is through City hired Engineers and City contractors. RECOMMENDA nON The City Staff including Public Works, recommends no change in present policy. The staff, based on past experience, feels the present policy is the best way to insure quality construction "- , for the City. , -- ) If the Council wishes to change the policy, staff strongly recommends that the City should retain the Engineering even if the developer is allowed to construct their own improvements. Outside of total City control, preparation of plans and specifications by a qualified engineer retained by the City and familiar with City policies and specifications is the second most important way to insure quality facilities. This scenario is only recommended if there is no oversizing of pipe or extra depth required to serve adjacent areas for future development and the construction improvements is 100% developer costs. If there is oversizing and/or extra depth of pipe necessary, the project should be constructed as a public improvement unless the developer is willing to pay lOO% of the cost for the oversizing and/or extra depth. In any case, full time City inspection should continue by using staff or a consultant hired by the City. City payment to developer-hired contractors, through an escrow arrangement, will also help the City to retain control over contractor's work. ',J If the Council decides to change City policy, staff feels the change should not take place until 2004, as a number of changes in procedures, assessment policy and securities will be necessary. Mayor and Council Members February 26, 2003 Page 3 of3 '\ " / ACTION REQUIRED Unless the Council wishes to change present policy, no action is required. Respectfully submitted Q~e..0. David D. Berkowitz , \ ,--I , "~ 02/11/2009 15:38 LRW OFFICE 2140 4TH RVE ~ 7558923 NO. 650 Gl02 - . . ! ./ \ William G. Hawkins J and Associates Memo To: David Berkowitz Andover Engineer From: Bill Hawkins Andover City Attorney Date: February 1 1, 2003 Re: Special Assessments and Public Bidding Requirements Dear Dave: ~-) You have requested an opinion from this office as to whether or not the City may reimburse a developer for costs they incur in installing a trunk utility system which benefIts property beyond the boundaries of the developer's land. The question concerns the reimbursement where the developer installs the improvement and there is no public bidding process. Minn. Stat 9429.011 defines "improvement" as any construction activity authorized by 9429.021. That section, at Subd. 3, provides that if any portion of an improvement is defrayed bv soecial assessments. the Chaoter 429 orocedures must be followed. Section 429.041, Subd. 1, provides in relevant part: "when the council determines to make any improvements... the council shall cause plans and specifications of the improvement to be made... and if the estimated cost exceeds ...$50,000... shall advertise for bids for the I improvement..... In other words, if the project is not a "public improvement" then the City I I may not reimburse itself by the use of special assessments. If the City determines to defray I the costs by the use of special assessments, public bidding procedures must be followed. I I do not see a mechanism authorized by the statutes whereby the City could contract directly I for the construction of improvements with a developer and then reimburse the developer by I the levying of special assessments against property that would be benefitted in the future. I trust this answers the question which you have raised. If you have any other questions or wish to discuss this matter further, please feel free to call. WGHl1Is , j J . Page 1 FEB 11 2003 15:44 763 421 4213 PRGE.02 Todd Haas From: Ron Quanbeck [RQuanbec@ci.plymouth.mn.us] Sent: Thursday, February 13, 2003 9:25 AM To: THaas@ci.andover.mn.us ':c: John Hagen; Dan Faulkner '-'"'Subject: FW: [city-eng] Public vs Private Installed Infrastructure Improvements The public infrastructure for most developments in the City of Plymouth is constructed by developers. This has been the practice for a very long time. The developer has the option to petition the City to install the improvements, but it is rarely exercised. If the City would do the project we would use a consultant. The developer hires an engineer to design the project. The design is then reviewed by the City. The developer supplies the construction inspection as well with a City inspector checking in from time to time and monitoring testing. The project engineer has to certify that the work was completed correctly. The development contract includes fairly robust financial guarantees which we have used. The biggest concern obviously is quality with the potential conflict of interest for the project engineer. Most engineers are very conscientious, however we have had concerns about some things that have happened and every now and then uncover something from past developments that are questionable. In the future we may go to City inspection, however it too has many potential conflicts when the City would be inspecting a contractor hired by someone else, from a plan developed by someone else and potentially requiring changes that would be paid for by someone else. I'm sure there are pros and cons for the City installing all public \improvements such as better control of the product and staffing issues , with fluctuations in construction activity. I will leave that --/discussion for someone more familiar with the issues. If you would like to discus this further you can contact me at 763-509-5525. Ron Quanbeck City Engineer -----Original Message----- From: Todd Haas [mailto:THaas@ci.andover.mn.us] Sent: Thursday, February 13, 2003 8:50 AM To: City Engineers Subject: [ city-eng] Public vs Private Installed Infrastructure Improvements Duke, I would like to send few questions out to all CEAM members. Does your City currently have Public or Private installed infrastructure improvements for urban subdivisions? What problems have you encountered with Private installed? Problems with Public installed? Can I contact you with additional question? , <_--"Thanks Andover Assistant City Engineer Todd Haas, 1 Todd Haas From: Craig Gray [cgray@cLanoka.mn.us] Sent: Thursday, February 13, 20039:09 AM To: Todd Haas (E-mail) "\ , I , . Todd, We allow private installation of utilities as did Shoreview when I was there. My opinion is that the way Andover does it is better. We would always be battling with developers and their engineers, inspections were never good enough, and I think having the city do it provides a much better product when completed. We just had a major water main break last week that took us 12 hours to fix. It was on a 12 year old 8" main and was caused because the developer that installed the utilities did not cap the tee properly. Craig Gray Director of Public Works/City Engineer City of Anoka 763-576-2781 cgray@ci.anoka.mn.us \ , ) , ) 1 Todd Haas From: Kevin Larson [Kevin@ci.brooklyn-park.mn.us] Sent: Thursday, February 13, 2003 3:53 PM To: THaas@ci.andover.mn.us 'Subject: Private vs Public Construction of infrastructure , . , , In Brooklyn Park since I have been here ( 11 yrs ) the majority of our public infrastructure for new development has been constructed by developers ( well over 90% ) . I have a construction engineer that reveiws all the plans prepared by the developers engineer for conformance to city standards. We do not approve them for construction until we are satisfied with them. We also have a full time inspector on site during construction to insure quality. We don't allow the developer to inspect his own work. I think proper plan reveiw and construction inspection are key to this process. In recent years we have also had our operations and maintenance people participate in the inspection of the infrastructure. We have been very satisfied with the results and we do not intend to change this process any time soon. Some of the problems that have been described by others happen on all projects regardless of the circumstances. If you have any questions let me know Kevin Larson Asst City Engineer City of Brooklyn Park '--~ , './ 1 Todd Haas From: Wayne Houle [WHoule@ci.edina.mn.us] Sent: Friday, February 14, 2003 9:13 AM To: 'THaas@ci.andover.mn.us' 'Subject: FW: [city-eng] Public vs Private Installed Infrastructure Improve ments , ~ Devagr.doc Todd: Attached is a developer's agreement that the City enter's into with all developers where we eventually take over the infrastructure. The utilities and roadways including ROW are all designed per City standards. The City then performs the contruction administration (staking and inspections, and as-buil ts) . We treat these projects no different than a City initiated public improvement. Please contact me if you have any other questions. Wayne Houle, PE Director of Public Works I City Engineer City of Edina 4801 West 50th Street Edina, MN 55424-1394 whoule@ci.edina.mn.us \ \ ~952-826-0443 direct 952-826-0390 fax -----Original Message----- From: Todd Haas [mailto:THaas@ci.andover.mn.us] Sent: Thursday, February 13, 2003 8:50 AM To: City Engineers Subject: [cit y-eng] Public vs Private Installed Infrastructure Improvements Duke, I would like to send few questions out to all CEAM members. Does your City currently have Public or Private installed infrastructure improvements for urban subdivisions? What problems have you encountered with Private installed? Problems with Public installed? Can I contact you with additional question? Thanks Todd Haas, Andover Assistant City Engineer 1685 Crosstown Blvd. NW Andover, MN 55304 763-767-5131 ',This email has been scanned for all viruses by the MessageLabs SkyScan , /service. For more information on a proactive anti-virus service working 1 Todd Haas From: Shelly Pederson [Shelly.Pederson@cLbloomington.mn.us] Sent: Friday, February 14, 2003 8:02 AM To: THaas@ci.andover.mn.us 'Subject: Re: [city-eng] Public vs Private Installed Infrastructure Improvements / >>> THaas@ci.andover.mn.us 02/13/03 08:50AM >>> Duke, I would like to send few questions out to all CEAM members. Does your City currently have Public or Private installed infrastructure improvements for urban subdivisions? Publily installed What problems have you encountered with Private installed? Problems with Public installed? Rarely any problems, we have close inspection Can I contact you with additional question? yes Thanks Todd Haas, Andover Assistant City Engineer 1685 Crosstown Blvd. NW Andover, MN 55304 763-767-5131 This email has been scanned for all viruses by the MessageLabs SkyScan \service. For more information on a proactive anti-virus service '-. J working around the clock, around the globe, visit http://www.messagelabs.com --- You are currently subscribed to city-eng as: spederson@ci.bloomington.mn.us To unsubscribe send a blank email to leave-city-eng-1007J@listserv.lmnc.org , \ ~ 1 . . Todd Haas From: Thomas J. McMahon [ccstoffi@rconnect.com] Sent: Thursday, February 13, 2003 9:16 PM _}o: BLoney@ci.shakopee.mn.us ::c: THaas@cLandover.mn.us , .j Subject: RE: [city-eng] RE: Public vs Private Installed Infrastructure Improve ments Bruce: If the City provides the Developer and his/her Engineer with its standards for public improvements, conducts an extensive review of submitted plans to ensure compliance, then provides an appropriate level of construction observation - then I believe your comments would have no foundation. In fact, my experience is that many cities lack standards, provide only cursory review, and/or conduct minimal visits for observation.... not to mention lack of staff to handle even this level of oversight. In another context, your comments at the end of your message are somewhat offensive to those of us who often consult to Developers. When you say "the bare minimum design", do you mean "the most economical design", or do you mean that the design fails to meet the City's standards? If so, whose fault is that?? Thomas J. McMahon ,.CCST Inc. 918 North 7th Street . ....P.O. Box 514 Cannon Falls MN 55009 Tel: 507-263-4110 Fax: 507-263-5089 e-mail: ccst@frontiernet.net -----Original Message----- From: Bruce Loney [mailto:BLoney@ci.shakopee.mn.us] Sent: Thursday, February 13, 2003 8:39 AM To: City Engineers Subject: [ city-eng] RE: Public vs Private Installed Infrastructure Improve ments Todd, we do allow developers to install public improvements privately and our experience has been mixed. Typically I would say that we get a better plan when done by a city consultant than the developer's because the city's interest is being done not the developer's. The potential cost savings that the developer's claimed is not worth the risk in having mistakes or poor designs that get accepted by the city and for perpetual maintenance. No matter how good a developer's engineer is, that person is still working .for , 'the developer and is looking for the bare minimum design for his client. /1 1 t~)nk ~our system is where more and more cities are going to and not the reverse. Call me if you have questions. Bruce Loney City of Shakopee Public Works Director ~ -----Original Message----- ) From: Todd Haas [mailto:THaas@ci.andover.mn.us] Sent: Thursday, February 13, 2003 8:50 AM To: City Engineers Subject: [cit y-eng] Public vs Private Installed Infrastructure Improvements Duke, I would like to send few questions out to all CEAM members. Does your City currently have Public or Private installed infrastructure improvements for urban subdivisions? What problems have you encountered with Private installed? Problems with Public installed? Can I contact you with additional question? Thanks Todd Haas, Andover Assistant City Engineer 1685 Crosstown Blvd. NW Andover, MN 55304 763-767-5131 This email has been scanned for all viruses by the MessageLabs SkyScan service. For more information on a proactive anti-virus service working around the clock, around the globe, visit http://www.messagelabs.com \ ) --- You are currently subscribed to city-eng as: bloney@ci.shakopee.mn.us To unsubscribe send a blank email to leave-city-eng-4543S@listserv.lmnc.org This email has been scanned for all viruses by the MessageLabs SkyScan service. For more information on a proactive anti-virus service working around the clock, around the globe, visit http://www.messagelabs.com --- You are currently subscribed to city-eng as: ccstoffi@rconnect.com To unsubscribe send a blank email to leave-city-eng-4543S@listserv.1mnc.org \. _/ ; 2 Todd Haas From: Otteson, Layne [OttesonL@ci.fridley.mn.us] Sent: Thursday, February 13, 2003 3:19 PM To: City Engineers 'Subject: [city-eng] RE: Public vs Private Installed Infrastructure Improve ments , / Todd, It kind of got long, but I've been adding thoughts throughout the day. Fridley allows private design and construction in public ROW, but we review and approve plans. We also inspect and accept the construction work. Developer also provides survey and inspector. I prefer to 429 it all. But Fridley is 99.9% developed and the private projects are small (couple blocks of redevelopment) . I would completely agree with Bruce and would like to add to it. I think that the City review of plans can take care of many issues, but design work performed on behalf of the City will give you a better overall plan. The City's consultant likely knows what the City wants and specifies the appropriate materials. Example would be a certain hydrant or manhole (concentric vs eccentric). This is important for future maintenance such as hydrant operation or jetting sewers. The work performed in the field is where I see the greatest risk. The most common issue I saw was compaction issues with pipe backfill and street subgrade. Also, when changes in the field need to be made or should be made, I think an inspector hired by the City will inform the engineer. The city's inspector will be much more inclined to make the contractor do right, as the developer's representative will have a tendency to turn the other cheek. Some of these issues would include . ,subgrade density, aggregate gradation, pavement density, pipe connection , work, cold weather conditions, etc. I think many contractors will work '" Jfaster and sloppier if they know there is little City oversight. Past problems I encountered on private plats have been: Damaged concrete curb was replaced on a Saturday without City supervision. The curb was only 2"-3" thick rather than 6" minimum. Watermain deflected around a curve without any bends. Should have had a couple 11 1/4s put in. Service trench settlements. Seen driveways settle around curbstop. Thinner layers of aggregate base and asphalt layers placed. Cool asphalt laid. Copper water service laid on top of sewer service pipe in trench. Undermining curb with utility work and then throwing dirt back under it. Wonder why it settled 2 years later? As-built issues. Punch-list issues. Survey busts. Contractor burying trees and debris under pond. One weekend the trees just disappeared!!! Pavement cracking soon after installation. Residents coming to the City for help or to blame - now it's political! Call with questions. BTW, do you want to hit a game farm for pheasants in March/April? ,Layne Otteson Asst PW Dir I..-JFridley 1 Todd Haas From: Thomas M. Montgomery [TMontgomery@cLhastings.mn.us] Sent: Thursday, February 13, 2003 2:12 PM To: 'THaas@cLandover.mn.us' )ubject: RE: [city-eng] Public vs Private Installed Infrastructure Improve ments , The City of Hastings allows both, though developers predominantly choose to construct their own improvements. Developers are required to post a letter of credit in the amount of 125% of the estimated construction cost, and post construction, provide a maintenance bond in the amount of 20% of construction cost. The City has our consultant review and comment on the plans before recommending approval, and~ses our consultant to inspect the construction. The developer is charged for our consultant billings on his projects. This has worked fairly well, with our consultant assuring adherence to City specs and construction requirements. Thomas M. Montgomery Public Works Director City of Hastings 101 East Fourth Street Hastings, Minnesota 55033-1955 (651) 480-2334 phone (651) 437-7082 fax " , '-----Original Message----- --~From: Todd Haas [mailto:THaas@ci.andover.mn.us] Sent: Thursday, February 13, 2003 8:50 AM To: City Engineers Subject: [city-eng] Public vs Private Installed Infrastructure Improvements Duke, I would like to send few questions out to all CEAM members. Does your City currently have Public or Private installed infrastructure improvements for urban subdivisions? What problems have you encountered with Private installed? Problems with Public installed? Can I contact you with additional question? Thanks Todd Haas, Andover Assistant City Engineer 1685 Crosstown Blvd. NW Andover, MN 55304 763-767-5131 '\ , / 1 Todd Haas From: Chris Cavett [Chris.Cavett@cLMaplewood.mn.us] Sent: Thursday, February 13, 20032:12 PM To: THaas@cLandover.mn.us )ubject: RE: [city-eng] Public vs Private Installed Infrastructure Improvements , Todd, Maplewood is a developed community and has had most all of the developement work done privately by the developer's through a development agreement. I know communities like Lino Lakes and Woodbury have all their work done by their own consultants. If Maplewood had much developement left, I would push to have it all done by the city. I think it can be done well privately though, but the city needs to have very rigid standards, details and procedures, as well as detailed reviews of the plans and a person from the city to oversee the private engineer during construction. Chris Christopher (Chris) Cavett, P.E. Assistant City Engineer City of Maplewood 1830 E. County Road B Maplewood, MN 55109 \ 651-770-4554 "651-748-3089 (fax) --- Outgoing mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com) . Version: 6.0.449 / Virus Database: 251 - Release Date: 1/27/2003 '. " 1 Todd Haas From: Terry Muller [Tmuller@ci.maple-grove.mn.us] Sent: Thursday, February 13, 2003 1:47 PM , To: City Engineers .Subject: [city-eng] Re: Public vs Private Installed Infrastructure Improvements / Todd, The City of Maple Grove doesn't allow private streets and utility construction of any infrastructure that will be maintained by the City. Back in the early 80's the city changed their policy of allowing private construction to public only. The reason was the poor quality and lack of control of the residential projects. There were several private projects that streets had to be reconstructed only a couple years after they were completed by the City due to settlements and inferior pavement sections. The staff and council has been pressured over the years to allow private construction by developers, and thankfully they haven't been successful in their efforts. Our public improvement projects have had their problems, however they have been in general much better quality and the City has greater control over the contractor and consultants. Feel free to contact me in the future if you have any further questions. Terry Muller >>> THaas@ci.andover.mn.us 02/13/03 08:50AM >>> Duke, I would like to send few questions out to all CEAM members. Does your City currently have Public or Private installed infrastructure improvements for urban subdivisions? What problems have you encountered with Private installed? Problems with Public installed? Can I contact you with additional question? " /,Thanks Andover Assistant City Engineer '. Todd Haas, 1685 Crosstown Blvd. NW Andover, MN 55304 763-767-5131 This email has been scanned for all viruses by the MessageLabs SkyScan service. For more information on a proactive anti-virus service working around the clock, around the globe, visit http://www.messagelabs.com --- You are currently subscribed to city-eng as: tmuller@ci.maple-grove.mn.us To unsubscribe send a blank email to leave-city-eng-1015E@listserv.lmnc.org This email has been scanned for all viruses by the MessageLabs SkyScan service. For more information on a proactive anti-virus service working around the clock, around the globe, visit http://www.messagelabs.com --- You are currently subscribed to city-eng as: thaas@ci.andover.mn.us , To unsubscribe send a blank email to , )leave-city-eng-1015E@listserv.lmnc.org 1 Todd Haas From: Bruce Loney [BLoney@cLshakopee.mn.us] Sent: Thursday, February 13, 2003 10:39 AM To: City Engineers 'Subject: [city-eng] RE: Public vs Private Installed Infrastructure Improve ments , , ,,' Todd, we do allow developers to install public improvements privately and our experience has been mixed. Typically I would say that we get a better plan when done by a city consultant than the developer's because the city's interest is being done not the developer's. The potential cost savings that the developer's claimed is not worth the risk in having mistakes or poor designs that get accepted by the city and for perpetual maintenance. No matter how good a developer's engineer is, that person is still working for the developer and is looking for the bare minimum design for his client. I think your system is where more and more cities are going to and not the reverse. Call me if you have questions. Bruce Loney City of Shakopee Public Works Director -----Original Message----- From: Todd Haas [mailto:THaas@ci.andover.mn.us] Sent: Thursday, February 13, 2003 8:50 AM To: City Engineers "Subject: [city-eng] Public vs Private Installed Infrastructure Improvements ,_/ Duke, I would like to send few questions out to all CEAM members. Does your City currently have Public or Private installed infrastructure improvements for urban subdivisions? What problems have you encountered with Private installed? Problems with Public installed? Can I contact you with additional question? Thanks Todd Haas, Andover Assistant City Engineer 1685 Crosstown Blvd. NW Andover, MN 55304 763-767-5131 This email has been scanned for all viruses by the MessageLabs SkyScan service. For more information on a proactive anti-virus service working around 'the clock, around the globe, visit http://www.messagelabs.com --- You are currently subscribed to city-eng as: bloney@ci.shakopee.mn.us To unsubscribe send a blank email to leave-city-eng-lOl5E@listserv.lmnc.org '\ '._/This email has been scanned for all viruses by the MessageLabs SkyScan 1 Page 1 of 1 Todd Haas From: Tom Colbert [TColbert@ci.eagan.mn.us] , Sent: Thursday, February 13,200310:36 AM ) To: 'Todd Haas' . Subject: Puyblic vs Private installed infrastructure Todd, Currently, the City of Eagan allows developers the option to install all required city infrastructure privately (according to City standards and specs, of course) with inspections performed by city authorized personnel (city or consultant), or they can petition the city to do it under an assessable public improvement subject to the appropriate waivers and agreements. Approx. 13 years ago, I tried to go all public, but got shot down BIG time by a coalition of builders, developers and their private engineers. Privately installed improvements are not done in the best long term interests of the city who will assume the ownership and maintenance of them, It's in the developers/contractors best interests to cut corners to save on costs. All they have to do is make sure that it holds up for the 2 year warranty period and then they're off the hook. They tend to play catch me if you can with our inspectors and then complain about how much the city is charging their escrow account for the time we are spending trying to catch them and fighting with them to do it right. Privately installed infrastructure is a losing proposition for the city and only occurs due to political pressures. Good Luck!!!! Tom Colbert, Director Dept. of Public Works City of Eagan, MN 55122-1897 Phone: (651) 675-5635 Fax: (651) 675-5694 , '\ tcolbert@cityofeagan.com '-) , I \. I 2/1312003 Civil Engineering John Oliver & Associates, Inc. Land Surveying 580 Dodge Avenue, Elk River, MN 55330 , Land Planning (763) 441-2072 . Fax (763) 441-5665 " ,J eriver@joliverassoc.com February 14,2003 Mr. Todd Haas, PE City of Andover 1685 NW Crosstown Boulevard Andover, MN 55304 ;' Re: Public Versus Private Infrastructure Improvements Dear Todd: Having worked as a City Consultant for 22 years and privately for over 10 years, I would like to comment on the City Design versus the Private Design. The quality of the product you receive is a function of the Engineer doing the design and the City review staff. Where the City has a well detailed set of design criteria, they get what they want equally from either public or private design process. However, when the design criteria is not defined, the City relies on the " , designer's ability and knowledge to provide the design. '--~ Personally, I and our staff do the same design regardless of which process we are in! The key to getting what you want is to have a detailed list of design criteria an details and review the plans for conformance. Mr. Loney's experience is flawed because as he states "mistakes on poor designs that get accepted by the City". Why does the City accept items that do not conform to their standards? Probably more an issue that the City does not have written standards of performance and design criteria. I find it difficult to believe that a consultant would not follow a City's written or requested design standards if provided. Please feel free to call me if you want to discuss further. Happy fishing! Sincerely, JOHN OLIVER & ASSOCIATES, INC. ~-y~ Terry L. Herman, PE Vice President '\ " / TLIDprj "~"fr $ if, <#~,::<,"1(~ f'l, L.cum\NlIk: VL Pfh:'i.t: Andbv&. i:~'~" 0' t';,lS3 {) C ~ (~{)YXl @) CITY OF ANDOVER ~ , \ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 , , FAX (763) 755-8923. WWW.C1.ANDOVER.MN.US TO: Mayor and Council Members ~~ CC: John Emr, City Admioimato, ~ FROM: David D. Berkowitz, City Engineer SUBJECT: Storm Water Utility Update/99-16 - Engineering DATE: February 26, 2003 INTRODUCTION The Andover City Council has authorized proceeding toward creation of a Storm Water Utility for funding the unfunded federal mandate requirements (NPDES Phase II) for storm sewer maintenance, education and pollution control measures for the City's storm water system. DISCUSSION /' \ Mr. Bill Ottensmann has been working for the City developing a storm water utility fee to assist .....J in funding the new NPDES Phase II requirements. A fee was presented to the Council at the Council Workshop held on January 15th. When Mr. Ottensmann returns from vacation, staff will work with him to modify the fee to show additional costs that will be incurred above what is already in the 2003 budget. In 2004, the storm water budget could be reduced and the storm water utility fee increased to offset the costs needed to fund these requirements. ACTION REOUIRED At this time no action is required. Respectfully submitted C?~~~J- , , / @ , '\ CITY OF ANDOVER "J 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923. WWW.C1.ANDOVER.MN.US TO: Mayor and Councilmembers CC: John Erar, City Administrator cf' FROM: Will Neumeister, Community Development Director~ SUBJECT: Council Workshop Discussion on Amending Ordinance 266 Rental Housing Standards-- Planning DATE: February 26, 2003 INTRODUCTION The last time this issue was discussed was October 1,2002. That night Council asked staff to provide additional research on potential changes to the Rental Housing Ordinance. Upon review of other cities that have adopted more stringent ordinances, the City of New Brighton was contacted, since (J they made such changes to their Rental Housing Ordinance in February, 2001. There have been no legal challenges to their ordinance, at this point in time. This is partly due to significant discussions they had with the landlords before they adopted it in 2001. New Brighton's Experience New Brighton's Director of Public Safety, Bob Jacobson, has provided insights into what has transpired since their new ordinance was adopted. He said that they have approximately 2, 900 rental housing units in their City. In one complex with 364 units, they had an average annual call rate of about 120 calls per year, before they changed the ordinance. Since the adoption of the new ordinance, that complex's call rate has dropped to about 30 calls per year. It has required additional time to administer the ordinance for their City Police Department, but it has resulted in less police calls to the units. He said there has been a trade-off in time, but overall it has saved time primarily for the field officers. Reporting Requirements The City has had to provide managers of rental housing complexes with monthly reports. They have also had to put rental complexes on notice when they had exceeded the call rate allowed for a regular license. In those cases the City would send a notice to the landlord that their license would not be renewed by Council. Furthermore, the landlords would be put on notice that to even be considered for a provisional license, they would need to work with City staff to prepare a mitigation plan and ., have it approved by Council. "j \ Rental Housing Ordinance '-/' Page 2 In situations where there were specific problem units in a given apartment complex, the manager would be sent a 1 sl notice of disorderly use, then upon a 2nd violation (related to a specific unit) the manager would receive another warning notice of potential suspension or revocation ofthe license for the entire complex. At the time of a 3rd call to the same unit, the City would send a notice indicating that legal actions would be taken to revoke the license and the Council could also take action to suspend or revoke the license to the entire complex based on the calls to that single unit. Mr. Jacobson indicated that they have not yet reached that level, because the landlord has evicted the tenant before they have ever reached the third notice. Administration / Monthly Call Reports Each month the managers and/or owners of complexes would receive a generic report of police or fire calls to all complexes. Also, actual police reports for incidents would be sent to managers of specific complexes if/when there were calls to any of their units. This enabled the owners/managers to be awareofthe status of their units and therefore could be proactive in beginning eviction proceedings or putting tenants on notice that the next violation would begin the eviction proceedings. Anoka County Sheriffs Comments . '\ In discussing the issue of updating this Ordinance with Andover's law enforcement staff, it was 0 recommended that adjustments be made to require landlords to be proactive in limiting incidents and police calls. Based on this recommendation, it is only prudent that Andover adopt a rental housing ordinance similar to New Brighton's that has tighter licensing controls that will engage landlords to participate in limiting higher levels of police calls in rental housing units. The burden is shifted to landlords to help in the corrective actions needed to lower the call rate. Newest Suggested Revisions Andover Staff has prepared an amendment to Ordinance #266 that takes this into account (attached). ACTION REOUESTED Staff requests the Council review the newest proposed amendment to the Rental Housing Ordinance. Upon review, either direct Staff to do more work before taking it public or direct it to the Planning Commission for a Public Hearing (with special invitation to the landlords/owners of rental units). Respectfully submitted, 4bL Will Neumeister , , , Attachments "~ Ordinance #266A (proposed language added) Proposed Amendment (Feb. 20, 2003 version) ~ \ (Rental Housing Ordinance #266) "J CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA ORDINANCE NO. 266 A An Ordinance repealing Ordinance No. 99 adopted April 21, 1992: and further amended in (date) . 2003. AN ORDINANCE LICENSING AND REGULATING RENTAL HOUSING DWELLINGS IN THE CITY OF ANDOVER. (Added sections are shown in bold, deleted sections are shown with strikeouts.) The City Council of the City of Andover hereby ordains as follows: Section 1. Purpose and Intent. It is the purpose of this ordinance to protect the public health, safety and welfare of citizens of the City who have as their place of abode a living unit furnished to them for the payment of a ~J rental charge to another. This ordinance is the initial step in the City's effort to provide a housing maintenance code. It is the intent of this ordinance that uniform standards be established and applicable for all rental dwellings in the City. and does not apply to rental housinl! units that are owner occupied. Section 2. Definitions. The following words and terms used in this ordinance are construed and defined as follows: Rental Dwelling any dwelling unit with two (2) or more living units for hire. "Rental dwelling" does not include hotels, motels and hospitals. and owner occupied housinl! units. Operate to charge a rental charge for the use of a unit in a rental dwelling. Section 3. License Required. No person, firm or corporation shall allow to be occupied or let to another for occupancy units in a rental dwellinl! for which a license has not been l!:ranted bv the City operate a rental awelling in the City without first hlwing ebtainea a license as hereinafter pn:l'/ided from ~) the Builaing Offieial or designee. There shall be two types of licenses: rel!:ular and provisional. After eJ(piFation of an initiallieeRsing perioa ef less than two (2) years as determined by the Building Offieial, Each rel!:ular saeh operating license shall be issued biennially and shall expire on the anniversary date of issuance. License renewals shall be filed at 3 least sixty (60) days prior to license expiration. A provisional license shall be issued only , \ upon approval bv the City Council and shall expire six (6) months after issuance: reference ,~ Section t 2 (2)(A) that sets forth criteria as to how a rel!ular license may be re-established. Section 4. License Fees. License fees, as set by City Council resolution, shall be due sixty (60) days prior to the license expiration date. In the case of a new unlicensed dwelling, the license fee shall be due upon issuance of the certificate of occupancy. In the case of licensing periods of less than two (2) years, license fees shall be prorated monthly. A license fee shall be collected for each unit in a multiple dwellinl!. except owner occupied units. If an application is made less than 60 days before the bel!inninl! date of the license period applied for then the fee shall be accompanied bv an additional amount equal to 100 percent of such license fee. The additional amount shall be a penalty for a late application. with the exception of the first year of the adoption of this ordinance. A delinquency penalty of five (5%) percent of the license fee for each day of operation without a valid license shall be charged to the operator ofthe rental dwelling. Once issued, a license is not transferable and the licensee shall not be entitled to a refund of any license fee upon revocation or suspension; however, the licensee shall be entitled to a license refund, prorated monthly, upon ~_J proof of transfer of legal control or ownership. A fee as set by City Council resolution, shall be charged for all re-inspections necessary after the first re-inspection. The re-inspection fee(s) will be payable at the time oflicense renewal for the property. Section 5. Application for Rental Housinl! License. Applications for Rental Housinl!: licenses shall be made in writing to the City Building Official by the owner of the rental units or his/her legally constituted agent. Before any Rental Housinl! license shall be issued or renewed. the owner shall complete an application. The followinl! persons shall be authorized to sil!n and submit the application: A. If the owner is a natural person. bv the owner thereof. B. If the owner is a corporation. bv an officer thereof. C. If the owner is a partnership. bv a partner thereof. The rel!istration statement shall be made on forms prescribed bv the City and shall include: , \ A. The name and address of the owner of the rental dwellinl!:s , B. The name and address of any operator or al!ent actively manal!inl! the rental dwellinl!. '_..I If "off-site" provide further data as to whom it is. 4 C. If the oDerator or a2ent is a business entity. the aDDlication shall include the names. / "- teleDhone numbers. and addresses of individuals who will be involved in such ,-) mana2ement. t02ether with a descriDtion of the sCODe of services and manner of delivin2 these services by the mana2er. D. If the re2istrant is a DartnershiD. the name and address of all Dartners. E. If the re2istrant is a corDoration. the name and address of all officers. F. If the rental dweIIin2 is bein2 sold on a contract for deed. the name and address of the vendees. G. The le2al address of the rental dweIIin2. H. The number of units within the rental dweIIin2. Notification by the rental operator shall be given to the City Building Official within five (5) business days with any change of information as required and stated in the initial application. Section 6. License Issuance. The City shall issue a rental housin2 license if the building and the application are found to be in compliance with the provisions of this Ordinance. Section 7. Renewal of License. The license Deriod shall commence on July 1. A re2ular license shall be issued for a Deriod of two years. A Drovisionallicense shall be issued only uDon aDDroval by the City Council \ Dursuantto the requirements of Section 12 of this ordinance for a Deriod ofsix months: , ,~ /' reference Section 12 (2)(A) that sets forth criteria as to how a re2ular license may be re- established. Section e- ~Conformance to Laws. No operating license shall be issued or renewed unless the rental dwelling and its premises conform to the ordinances ofthe City and the laws of the State of Minnesota. Section +-.!l:. Inspection Condition. No operating license shall be issued or renewed unless the owner ofrental units agrees in his/her application to permit inspections pursuant to Section 17. Section & 10. License Not Transferable. No operating license shall be transferable to another person or to another rental dwelling. Every person holding an operating license shall give notice in writing to the City Bl:lilding Official within five (5) business days after having legally transferred or otherwise disposed ofthe legal control of any licensed rental dwelling. Such notice shall include the name and address of the person succeeding to the ownership or control of such dwelling or dwellings. , \ J 5 Section H 11. Conduct on Licensed Property. , \, "j/ (1) It shall be the responsibility of the licensee to see that persons occupying the licensed premises conduct themselves in a manner as not to cause the premises to be disorderly. For the purpose of this Section, a premises is disorderly at which any ofthe following activities occur: 1. Violation of the City's Noise Ordinance. 2. Violation to State laws relating to the possession of controlled substances. 3. Violation of Disturbing the Peace. 4. The unlawful sale ofliquor. 5. Violation to laws relating to gambling. 6. Violation of State laws relating to acts of prostitution. 7. The unlawful use or possession of a firearm as per State law. 8. Violation of Minnesota Statutes. Section 609 (i.e. Disorderly Conduct: Unlawful Assembly: Riot: Terroristic Threat: Presence at Unlawful .' '\ Assembly. ,j ill Enforcement Alithoritv. The City Administrator shall be responsible for enforcement and administration of this Chapter. Authoritv to take any action authorized by this Chapter may be delel!:ated to the City Administrator's desil!:nee. The Building Offieial shaH be responsible for enforeement ami administration ofthis Soetion. ill Notice of Violation. Upon determination by the City Building Official that a licensed premises was used in a disorderly manner, as described in this Section, the City Building Offieial shall give notice to the licensee ofthe violation and direct the licensee to take steps to prevent further violations. The disorderly manner shall be as defined in Section 11. Subsections (1) and (7). ill Second Instance. If a second another instance of disorderly use of the licensed premises occurs within three (3) months of an incident for which a notice was given as specified in Section 11 (1) by tho Building Offieial, the City Building Offieial shall notify the licensee to submit a written report of the actions taken, and proposed to be taken, by the licensee to prevent further disorderly use ofthe premises. This written report shall be submitted to the City Building Offieial within five (5) days ofreceipt of the notice of disorderly use of the premises and shall detail all actions taken by the licensee in response to all notices of disorderly use of the premises within the preceding three (3) months. , '0,_ J 6 ill Third Instance. If a third another instance of disorderly use of the licensed premises \ occurs within three (3) months after any two (2) previous instances of disorderly use for which " /' notices were given to the licensee pursuant to this Section 11 (1), the rental dwelling license for the premises may be denied, revoked, suspended or not renewed. An action to deny, revoke, suspend, or not renew a license under this Section shall be initiated by the City Building Offieial who shall give to the licensee written notice of a hearing before the City Council to consider such denial, revocation, suspension or nonrenewal. Such written notice shall specify all violations of this Section, and shall state the date, time, place and purpose of the hearing. The hearing shall be held no less than ten (10) days and no more than thirty (30) days after giving such notice. @ Action of the Citv Council. Following the hearing, the City Council may deny, revoke, suspend or decline to renew the license for all or any part or parts of the licensed premises or may grant a license upon such terms and conditions as it deems necessary to accomplish the purposes of this Section. ill Instances Defined. For purposes of this Section. instances of disorderlv use shall be those which: A. Occur at the same rental unit: or B. Involve tenants at the same rental unit: or C. Involve l!uests or invitees at the same rental unit: or D. Involve l!uest or invitees of the same tenant: or E. Involve the same tenant. ') " j ill Eviction Proceedin!!s. No adverse license action shall be imposed where the instance of disorderly use of the licensed premises occurs during the pendency of eviction proceedings (unlawful detainer) or within thirty (30) days of notice given by licensee to a tenant to vacate the premises where the disorderly use was related to conduct by that tenant or by other occupants or guests ofthe tenant's unit. Eviction proceedings shall not be a bar to adverse license action, however, unless they are diligently pursued by the licensee. Further, any action to deny, revoke, suspend, or not renew a license based upon violations of this Section may be postponed or discontinued at any time if it appears that the licensee has taken appropriate measures which will prevent further instances of disorderly use. ill Evidence of Disorderlv Manner. A determination that the licensed premises have been used in a disorderly manner as described in this Section !.!...(ll shall be made upon substantial evidence to support such determination. It shall not be necessary that criminal charges be brought in order to support a determination of disorderly use, not shall the fact of dismissal or acquittal of such criminal charge operate as a bar to adverse license action under this Section. run Servin!! of Notice. All notices given by the City under this Section shall be personally served on the licensee, sent by certified mail to licensee's last known address or, if neither method of service effects notice, by posting on a conspicuous place on the licensed premises. , , !ill Council Action Not Exclusive. Enforcement actions provided in this Section shall not be '. ) exclusive, and the City Council may take any action with respect to a licensee, a tenant, or the licensed premises as is authorized by this ordinance or State law. 7 \ Section 12. Provisional License. , "j) (1) Police or fire calls. Licensed multiple dwellinl!s that have l!enerated an averal!e of2 police or fire calls per dwellinl! unit over anv consecutive twelve month period durinl! the license period shall onlv be elil!ible for a provisional license at the time of next renewal. as specified in this Section. (A) Police or fire calls that are counted in determininl! whether a provisional license is required include the followinl! types of calls or events: (1) Calls or events listed in Sections 11 or 12. (2) Calls or events catel!orized as part one crimes in the Uniform Crime Reportinl! Svstem. includinl! homicide. rape. robbery. al!l!ravated assault. burl!urlarv. theft. auto theft. and arson. (3) Calls or events catel!orized bv the Public Safety Department: miscellaneous iuvenile status crimes: liquor offenses or curfew violations: disturbinl! the peace or harassinl! communications: property damal!e: criminal damal!e to property or trespass: domestic incidents: fire alarms: public disturbance or disorderlv conduct: loud partv or noise complaints: disorderlv iuveniles: ~J assault in the fifth del!ree or non-domestic related assaults. The Sheriff shall maintain for public inspection a description of the codinl! system and a list of the codes and crimes included within each of these catel!ories or calls or events. The Sheriff may determine that multiple incidents shall be counted as a sinl!le call in appropriate cases. (B) Calls not counted for purposes of determininl! whether a provisional license is required where the victim and suspect are "Familv or household members" as defined in the Domestic Abuse Act. Minnesota Statutes. Section 518 B.01. Subdivision 2(b) and where there is a report of "Domestic Abuse" as defined in the Domestic Abuse Act. Minnesota Statutes. Section 518 B.01. Subdivision 2(a). (C) The City will provide a report bv mail to each licensee that exceeds the allowable calls described in Section 11 subsection (A)(1). (2) Mitil!ation Plan. Prior consideration of a provisional license. the applicant for a provisional license must submit a mitil!ation plan to City staff to work out the details of a mitil!ation plan and it must be reviewed and approved bv the City Council. (A)The mitil!ation plan shall describe steps proposed bv the applicant to reduce the number of police or fire calls described in Section 11. Subsection (A)(1) over the six month period of the provisional license to a level that would entitle the property to , \ qualifv for a rel!ular license at the end of the six month provisional license period. ,-J 8 (B)The mitil!ation plan may include such steps as: chanl!es in tenant screeninl! , procedures, chanl!es in lease terms, security measures, rules and rel!ulations for I tenant conduct, and security personnel. I (3) Decision of City Council. The application and a proposed mitil!ation plan will be presented to the City Council tOl!ether with a disposition recommendation by the City Administrator. After l!ivinl! the applicant an opportunity to be heard and present evidence, the City Council shall approve, disapprove, or approve with conditions the mitil!ation plan and the provisional license. If the City Council disapproves an application and mitil!ation plan or approves a provisional license with conditions, it shall state its reasons for so doinl! in writinl!. (4) Monthly Reports. The provisional licensee shall comply with the approved mitil!ation plan. No later than the tenth day of each month, the licensee shall mail or deliver to the City a written report describinl! all steps taken in furtherance of the mitil!ation plan durinl! the precedinl! month. If the required month Iv reports are not submitted in a timelv fashion by the property owner, then the City may beein proceedines to revoke the provisional license for all or any part or parts of the licensed premises. Section .w- 13. Maintenance Standards. Every rental unit shall maintain the standards as stated in Ordinance No. 267, the Housing Maintenance Code. , , \."--) Section ++ 14. Landscape Condition. Each rental dwelling unit shall be maintained by its owner, occupant, operator or agent so that the yards, open spaces and parking facilities are kept in a safe and attractive condition. Where a conditional use permit has been granted, the landscaping shown on the approved landscaping plan shall be considered as minimal and shall be maintained accordingly. Any deviation to species or material shall be equal to or better than originally approved. In addition, adequate lighting faculties shall be provided and operated between the hours of sunset and sunrise; and snow plowing or snow shoveling shall be regularly accomplished to maintain all sidewalks and parking areas in a safe condition. Section R 15. Safety from Fire. An owner, operator or agent of a rental dwelling shall be responsible to comply with the applicable provisions of the Fire Code of the City, including the keeping of all fire lanes open for emergency purposes. Section -l-4 16. Inspections and Investigations. The Building Official and Fire Chief and/or their desil!nated his/her representative! ~ is hereby authorized to make inspections reasonably necessary to the enforcement of this ordinance. , ) ',/ Persons inspecting any rental dwelling as provided herein shall notify the license holder of all violations, if any, by issuing a written Compliance Order. Said Compliance Order shall direct 9 that compliance be made in no more than fifteen (15) days, unless extended by the Building / , Official and/or Fire Chief based on good cause. , / Section lj 17. Revocation or Suspension. Every license er permit issHed Hnder this ordinance subject t6 the right, 'i',hich is hereby expressly reserved, te slispend er re'/eke the same sfloHld the license holder er their agents, employees, representati'/es or lessees directly er indirectly eperate or maintain rental dwellings contrary te the proyisiens ofthis erdinance er any other eminance efthe City or any speoial permit issHed by the City er the lll',ys efthe State ofMinneseta. The license may be sl:lspended or re'/oked by the City C01:lRcil after a written notice is sent to the license holder specifying the ordinance or law ,..iolations with .,ybich they are charged. This notice shall alse specify the date fDr hearing bef-ere the City COlmcil, which shall net be less than ten (10) days fr-em the date efthe written netice. At sHch heariNg berere the City Ceunoil, the license helder er their atterney may s1:1bmit and present witnesses in their defense. After a hearing the City Ce1:lRcil may sHspeml or re'/oke the liceNse ifthey deem it necessary te pretect the public health, safety or general welfare. (1) Reason for Action. The Council mav revoke. suspend. deny or decline to renew any , license issued under this Ordinance upon any of the followinl! l!rounds: , / A. False statements on any application or other information or report required bv this Ordinance to be l!:iven bv the applicant or licensee. B. Failure to pay any application. penaltv. reinspection. or reinstatement fee required bv this Ordinance and resolution. C. Failure to correct deticiencies noted in notices of violation in the time specified in the notice. D. Failure to complv with the provisions of an approved mitil!ation plan in the case of provisional licenses. E. Anv other violation of this Ordinance. (1) ADD/icable Sections. Revocation. suspension. and non-renewal may be broul!ht under either this Section or Section 11 (1 ). (2) Reeular License. A rel!ular license may be revoked. if at mid-term. or not renewed. if at the end of a term. upon a tindinl! that the premises are onlv elil!ible for a provisional license as provided in Section 11 (1). (3) Written Notice. A decision to revoke. suspend. deny or not renew a license shall be preceded bv a written notice to the applicant or licensee of the allel!ed l!rounds therefore and the applicant or licensee will be l!iven the opportunity for a hearinl! before the City 1 Council before tinal action to revoke. suspend. deny. or not renew a license. \.__J 10 (4) Action ofCitv Council. The City Council shall !!:ive due re!!:ard to the freauencv and '. seriousness of violations. the ease with which such violations could have been cured or " avoided and !!ood faith efforts to complv and shall issue a decision to denv. not renew. . , suspend. or revoke a license onlv upon written findin!!s. The City Council mav suspend or revoke a license or not renew a license for part or all ofthe facilitv. (5) Reinstatement of License. Upon a decision to revoke. denv. or not renew a license. no new application for the same facilitv will be accepted for a period of time specified in a written decision of the City Council. not exceedin!! one vear. Such new applications must be accompanied bv a reinstatement fee. as specified bv resolution. in addition to all other fees reauired bv this Ordinance. (6) No New Rentals. A written decision to revoke. suspend. denv. or not renew a license or application shall specifv the part or parts of the facilitv to which this applies. Thereafter. and until a license is reissued or reinstated. no rental units becomin!! vacant in such part or parts of the facilitv mav be relet or occupied. Revocation. suspension. or non- renewal of a license shall not excuse the owner from compliance with all terms of this Ordinance for as Ion!! as anv units in the facilitv are occupied. (7) Failure to Como/v. Failure to complv with all terms of this Ordinance durin!! the term of revocation. suspension. or non-renewal is a misdemeanor for extension of the term of such revocation or suspension or continuation of non-renewal. or for a decision not to reinstate the license. notwithstandin!! anv limitations on the period of suspension. , revocation. or non-renewal specified in the City Council's written decision or in Section 17. " / Subdivision (6). Section 18. No Retaliation. No licensee shall evict. threaten to evict. or take anv other punitive action a!!ainst any tenant by reason of !!ood faith calls made by such tenant to law enforcement a!!encies related to criminal activity. suspected criminal activity. suspicious occurrences. or public safety concerns. This Section shall not prohibit the eviction of tenants from a dwellin!! unit for unlawful conduct of a tenant or invitee or violation of any rules. re!!ulations. or lease terms other than a prohibition a!!ainst contactin!! law enforcement a!!encies. Section M 19. Summary Action. When the conduct of any license holder or their agent, representative, employee or lessee or the condition of their dwelling is detrimental to the public health, safety and general welfare as to constitute a nuisance, fire hazard or other unsafe or dangerous condition and thus give rise to an emergency, the City Builc.tiag Official shall have the authority to summarily condemn or close off such area ofthe rental dwelling. Any person aggrieved by a decision of the City Buildiag Offieial to cease business or revoke or , , suspend the license or permit shall be entitled to appeal to the City Council immediately by filing j a Notice of Appeal. The City Builc.tiag Official shall schedule a date for hearing before the City "-~ Council and notify the aggrieved person of the date. 11 The hearing shall be conducted in the same manner as if the aggrieved person had not received ,r' , summary action. , / -, The decision of the City Buildiag Offieial shall not he voided by the filing of such appeal. Only after the City Council has held its hearing will the decision of the City Buildiag Official be affected. Section H 20. Applicable Laws. Licenses shall be subject to all of the ordinances of the City and laws of the State related to rental dwellings. This ordinance shall not be construed or interpreted to supersede or limit any other such applicable ordinance or law. Section -l& 21. Severability Clause. If any section, subsection, sentence, clause or phrase ofthis Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. Adopted by the City Council ofthe City of Andover on this --1h day of ,2003. ATTEST: CITY OF ANDOVER Victoria Volk, City Clerk Michael Gamache, Mayor / \ \.,/ \ / 12 (j) CITY OF ANDOVER 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: John Erar, City Administrator FROM: David D. Berkowitz, City Engineer SUBJECT: Louden Property Purchase Agreement/03-7 - Engineering DATE: February 26, 2003 INTRODUCTION City staff has presented an offer to Mr. Steven Louden to purchase his property at 1831 Crosstown Blvd. NW. The property is located west of the water treatment plant. The City Attorney has drafted a purchase agreement for this property. Attached is a copy of the proposed purchase agreement for your review. " '\ DISCUSSION "j An appraisal was conducted on the property and the final estimated value was determined to be $165,000 (see attached appraisal). After discussion with the City Attorney, relocation costs were estimated between $1,500-$3,000. Further discussions with the attorney found that condemnation costs would be approximately $10,000. Mr. Louden agreed to a purchase price of $180,000. Anticipated acquisition of this property would be May 1,2003. He would be allowed until July I, 2003 to remove structural items (windows, doors, etc.) from the house and garage. BUDGET IMPACT The purchase of this property would be funded by Interest income on tax increment prior to 1998. ACTION REOUIRED Council is requested to approve the purchase of property at 1831 Crosstown Blvd. NW. Respectfully submitted, Q~(J. David D. Berkowitz / " , 0 ,?'~.~~~u I ,,"c' I /~~-!_ "--'" J_. .-" PURCHASE AGREEMENT <~"~^""'U " , '\ ,._~/ 1. PARTIES. This Purchase Agreement is made on , 2003, by and between Steven L. Louden, an individual, of 1813 Crosstown Boulevard NW, Andover, Minnesota, Seller and the City of Andover, a municipal corporation under the laws of the Minnesota, of 1685 Crosstown Boulevard NW, Andover, Minnesota 55304, Buyer. 2. OFFER/ACCEPTANCE. Buyer agrees to purchase and Seller agrees to sell real property legally described as follows: That part of the northwest quarter of the southeast quarter of Section 22, Township 32, Range 24, Anoka County, Minnesota, described as follows: Beginning at a point on the south line of said quarter quarter, 873 feet east of the southwest corner thereof, thence northerly at a right angle to said south line 330 feet, thence east parallel with said south line to a point parallel with and 1,020 feet east of the west line of said quarter quarter thence southerly parallel with the west line to said south line; thence westerly along said south line to the point of beginning. and located at 1813 Crosstown Boulevard Northwest, City of Andover, County of Anoka, State of Minnesota. ~J 3. PURCHASE OF LOT WITH BUILDING OR VACANT LOT. (Check paragraph that pertains.) X A. Buyer is purchasing the lot with an existing building. B. Buyer is purchasing a vacant lot. 4. PRICE AND TERMS. ' The price for the real and personal property included in this sale: One Hundred Eighty Thousand and no/100 Dollars ($180,000.00) which Buyer shall pay as follows: Earnest money of Two Thousand and no/100 Dollars ($2,000.00) by check, receipt of which is hereby acknowledged, and One Hundred Seventy-Eight Thousand and no/100 Dollars ($178,000.00) cash on or before May 1, 2003 DATE OF CLOSING. 5. DEED/MARKET ABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a Warranty Deed conveying marketable title, subject to: A. Building and zoning laws, ordinances, state and federal regulations; B. Restrictions relating to use or improvement of the property without effective forfeiture provisions; , " '- ) 1 DR A FI C. Reservation of any mineral rights by the State of Minnesota; , \ , D. Utility and drainage easements which do not interfere with existing -~~~.~ improvements. 6. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Buyer on a calendar year basis to the actual DATE OF CLOSING. SELLER SHALL PAY on DATE OF CLOSING all installments of special assessments certified for payment with the real estate taxes due and payable in the year of closing. SELLER SHALL PAY on DATE OF CLOSING all other special assessments levied as of the date of this Agreement. SELLER SHALL PAY on DATE OF CLOSING any deferred real estate taxes, special assessments or connection charges payment of which is required as a result of the closing of this sale. BUYER SHALL PAY real estate taxes due and payable in the year following closing and thereafter and any unpaid special assessments payable therewith and thereafter, the payment of which is not otherwise provided herein. Seller makes no \ representation concerning the amount of future real estate taxes or of future special '-/' assessments. 7. SELLER'S BOUNDARY LINE AND ACCESS WARRANTIES. Seller warrants that buildings, if any, are entirely within the boundary lines of the property. Seller warrants that there is a right of access to the real property from a public right of way. Seller warrants that there has been no labor or material furnished to the property in the past 120 days for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the property. These warranties shall survive the delivery of the warranty deed. 8. DISCLOSURE OF NOTICES. Seller has not received any notice from any governmental authority as to violation of any law, ordinance or regulation. If the property is subject to restrictive covenants, Seller has not received any notice from any person as to a breach of the covenants. 9. POSSESSION. Seller shall deliver possession of the property not later than May 1, 2003. All interest, fuel oil, liquid petroleum gas, and all charges for city water, city sewer, electricity and natural gas shall be prorated between the parties as of the date of change of possession. , '\ ',J 2 DRA~1 10. EXAMINATION OF TITLE. Seller shall, within a reasonable time after acceptance of this Agreement, furnish an Abstract of Title, or a Registered Property , " Abstract, certified to date to include proper searches covering bankruptcies, State and J \''''' / Federal judgments and liens. Buyer shall be allowed 30 business days after receipt for examination of title and making any objections, which shall be made in writing or deemed waived. 11. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days from receipt of Buyer's written title objections to make title marketable. Upon receipt of Buyer's title objections, Seller shall, within ten (10) business days, notify Buyer of Seller's intention of make title marketable within the 120 day period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall not delay the closing. Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of title, all payments required herein and the closing shall be postponed. A. If notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentation establishing that title has been made marketable, and if not objected to in the same time and manner as the original title objections, the closing shall take place within ten (10) business days or on the scheduled closing date, whichever is later. B. If notice is given and Seller proceeds in good faith to make title \ marketable but the 120 day period expires without title being made '- j marketable, . Buyer may declare this Agreement null and void by notice to Seller, neither party shall be liable for damages hereunder to the other, and earnest money shall be refunded to Buyer. C. If Seller does not give notice of intention to make title marketable, or if notice is given but the 120 day period expires without title being made marketable due to Seller's failure to proceed in good faith, Buyer may seek, as permitted by law, anyone or more of the following: (1) Proceed to closing without waiver or merger in the deed of the objections to title and without waiver of any remedies, and may: (a) Seek damages, costs, and reasonable attorney's fees from Seller as permitted by law (damages under this subparagraph (a) shall be limited to the cost of curing objections to title, and consequential damages are excluded); or, (b) Undertake proceedings to correct the objections to title; , " I 3 " j DRA~1 (2) Rescission of this Purchase Agreement by notice as provided herein, in which case the Purchase Agreement , ) shall be null and void and all earnest money paid hereunder , - , shall be refunded to Buyer; (3) Damages from Seller including costs and reasonable attorney's fees, as permitted by law; (4) Specific performance within six months after such right of action arises. D. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of the following options, as permitted by law: (1) Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation; (2) Seek specific performance within six months after such right of action arises, including costs and reasonable attorney's fees, as permitted by law. , \ ,.-.... } E. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: (1 ) Seek damages from Seller including costs and reasonable attorneys' fees; (2) Seek specific performance within six months after such right of action arises. TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT. 12. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address as shown at paragraph 1 above and, if mailed, are effective as of the date of mailing. 13. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. , './ 4 DRA~1 14. WELL AND FUEL TANK DISCLOSURE. Seller certifies that there is an individual well for water use on or serving the property. , "- -~ 15. INDIVIDUAL SEWAGE TREATMENT SYSTEM DISCLOSURE. Seller certifies that there is an individual sewage treatment system on or serving the property. 16. LEAD PAINT. Seller has no knowledge of lead-based paint or lead-based paint hazards in the housing. Seller has no reports or records pertaining to lead-based paint or lead-based paint hazards in the housing. 17. PAYMENT OF CLOSING COSTS. Each party shall pay closing costs which are normally allocated to Buyers and Sellers in a real estate transaction. 18. RECLOCATION BENEFITS. Seller waives all rights, claims, and causes of actions of any nature, whatsoever, that Seller may be entitled to under the Uniform Relocation Assistance and Real Property Acquisition Act of 1970 ("Act") as adopted by Minnesota law. 19. RISK OF LOSS. If there is any loss or damage to the property between the date hereof and the date of closing, for any reason, including fire, vandalism, flood, earthquake or act of God, the risk of loss shall be on the Seller. 20. PERSONAL PROPERTY REMOVAL. Seller shall remove all personal property and fixtures located upon the property prior to the date of closing. , '\ Notwithstanding the foregoing, Seller shall leave the buildings and property in a secure ',.) condition. It is further agreed between the parties hereto that Buyer is purchasing the property in an "as is" condition. 21. DEMOLITION. The Seller shall have access to the property until July 1, 2003 for the purpose of removing structural items from the existing house and garage. The Seller shall be allowed to leave debris on the property except all contaminated materials and motor vehicles or vehicle parts shall be removed prior to the DATE OF CLOSING. 22. CONTIGENCY. This agreement is contingent upon approval by the Andover City Council within 14 days after execution by the Seller herein. In the event said agreement is not approved by the City Council within said time period this agreement shall be null and void. I agree to sell the The City of Andover agrees to property for the price and purchase the property for the price terms and conditions and terms and conditions set set forth above. forth above. , 5 , / DRAfY SELLER: BUYER: , " STEVEN L. LOUDEN THE CITY OF ANDOVER . ~ ' By: By: Steven L. Louden Its: Mayor By: Its: City Clerk \ . I , , , ,/ 6 I' . Borrower/Client STEVEN LOUDEN RleNo, 01/03-205 ProDertv Add'ess 1831 Crosstown Blvd NW Citv ANDOVER Countv ANOKA State MN liD Code 55304-2614 Lender MARKET STUDY TABLE OF CONTENTS - - ~ -":"'" ; ,J': I ' , I jl ' l-:"~ 1, ,I ,~ ~.!! \ . It J ~I .. ' , . .. .' - . .' . i~}~~j1L>< :' Invoice .......................,.................................,......................................................,.........................................,................................................................... 1 Summary of Salient Features ....,.................................................................,...........................,.......,..,...................................................................,..........., 2 URAR ..........................,........,................................,........,.........................,..,.....................................................,..........................................,..............,...... 3 GeneralT ex! Addendum .....................,..........,.......................,....................,....................,.........,........,...........,.................................,...........,...........,......... 5 Subject Photos ,....................,....................,..................................,...................,...............,..............,..............................,....................,....,........................, 6 BUiiding Sketch (Page -1) ..............................................................................,....,.....,.............................................,..........,........................,...........,......... 7 Comparable Photos 1-3 ...............,................................,............,.........,....................,..,...........................,..,................................,..................................... 8 Location Map ...,.........,..................,.................,.............................,...................................,..............................,................................................................. 9 Statement of Limiting Conditions ,..,............,.......................,..............................................,.........,....................,...................................,.....................,....... 10 , ) , I' ) Form TOCP - 'TOTAL for Windows' appraisal software by a la mode, inc. -1-800-ALAMODE IFiie No, 01/03-2051 Paae #21 SUMMARY OF SALIENT FEATURES Subject Address 1831 Crosstown Blvd NW Legal Description SEE ADDENDUM City ANDOVER County ANOKA State MN lip Code 55304-2614 ':J Census Tract 0502,21 Map Reference 50-B1 Sale Price $ DISCOVERY Date of Sale DISCOVERY Borrower I Client STEVEN LOUDEN Lender MARKET STUDY Size (Square Feet) 1,120 Price per Square Foot $ Location SUBURBAN/AV Age 68N23E CJ Condition AVERAGE T olai Rooms 5 Bedrooms 2 Baths 1 Appraiser JEFF SHALLER Date of Appraised Value 1/14/2003 Final Estimate of Value $ 165,000 ,. '\ . ) "----' Form SSD - 'TOTAL for Windows' appraisal software by a la mode, inc. -1-800-ALAMODE VISION APPRAISALS INC, (612) 209-5021 IFile No, 01/03-2051 Paae #31 01/03-205 ro ,Il<>scrlntlon UNIFORM RESIDENTIAL APPRAISAL REPORT FileNo. 01/03-205 Pronertv Address 1831 Crosstown Blvd NW Citv ANDOVER State MN Zio Code 55304-2614 LeoalDescriotion SEE ADDENDUM Counlv ANOKA Assessor's Parcel No, 223224420004 Tax Year 2003 R.E. Taxes $ 728,00 Soecla! Assessments ~ 0,00 Borrower STEVEN LOUDEN Current Owner SAME AS BORROWER Occunant: rX1 Owner il Tenant il Vacant .. pronertv riohls annraised rxl Fee Simnle I I Leasehold ProieclTvne I I PUD I I Condominium IHUDNA onlv\ HOH N/A /Mo. Neiahborhood or Prolect Name ANDOVER MaD Reference 50-B1 Census Tract 0502.21 Sale Price $ DISCOVERY Date of Sale DISCOVERY Descrintion and ~ amount of loan charne</concesslons to be naid bv seller N/A Lender/Client MARKET STUDY Address N/A ADoraiser JEFF SHALLER Address 2121 CLIFF DR #229 EAGAN MN 55122 Location DUrban [:><J Suburban U Rural Predominant Sin~e family housl~ Present land use % Land use change Buitt up DOver 75% [:><J 25-75% D Under 25% occupancy rwOO) ~) One family 85 [:><J Not likely D Likely Growth rate D Rapid [:><J Stable D Slow [:><J Owner 125 Low 0 2-4 family 5 D In process Properly values [:><J Increasing D Stable D Declining D Tenant 350 Hiah 100 Multi-family 5 To: Demand/supply g Shortage ~ In balance D Over supply Fi[:><J Vacant (0-5%) I Predominant I Commercial 5 Marketina time IXI Under 3 mos, I I 3-6 mos, n Over 6 mos, VacJover 5%\ 225 50 Note: Raco and the racial composition of the neighborhood are not appraisal factors. Neighborhood boundaries and characteristics: THE SUBJECTS NEIGHBORHOOD IS NORTH OF ANDOVER BLVD. N.w, SOUTH OF 161ST AVE. N.w. EAST OF ROUND LAKE BLVD, N.w, AND WEST OF HIGHWAY 65, I: Factors that affect the marketability of the properties in the neighborhood (proximity to employment and amenities, employment stability, appeal to market etc.): . THE SUBJECT IS IN THE SUBURBAN COMMUNITY OF ANDOVER. CLOSE TO SHOPPING ENTERTAINMENT EMPLOYMENT AND D FREEWAY ACCESS AND OTHER AMENITIES THAT ADD TO THE APPEAL OF THE PROPERTY, THERE ARE NO NEGATIVE FACTORS r"',THAT WOULD AFFECT THE MARKETABILITY OR WOULD DECREASE ITS APPEAL TO THE MARKET. , j Market conditions in the subject neighborhood (including support for the above conclusions related to the trend of properly values, demand/supply, and marketing time __ such as data on competitive properties for sale in the neighborhood, description of the prevalence of sales and financing concessions, etc,): THE GENERAL MARKET CONDITIONS IN THE AREA APPEAR STABLE TO ACTIVE WITH FINANCING READILY AVAILABLE. SPECIAL FINANCING CONCESSIONS FOR VA AND FHA HAVE BEEN ADJUSTED FOR AS APPROPRIATE IN THIS REPORT AS SELLER CONCESSIONS ARE TYPICALLY NOT NECESSARY, MARKETING TIME IS CURRENTLY UNDER 3 MONTHS, Project Information for PUDs (tt applicable) - -Is the developer/builder in control of the Home Owners' Association (HOA)? DYes D No ~ Approximate total number of units in the subject project Approximate total number of untts for sale in the subject project Describe common elements and recreational facilities: Dimensions IRREGULAR Topography LEVEL Stte area 48.351 SF Comer Lot DYes [:><J No Size TYPICAL FOR AREA Specttic zoning classttication and description R-1 SINGLE FAM RESIDENCE RURAL Shape IRREGULAR Zoning compliance [:><J Legal ~D Legal nonconforming (Grandfathered use) D liIegal D No zoning Drainage APPEARS ADEQUATE Hlnhest & best use as imnroved: IXI Present use n Other use (emlain\ View RESIDENTIAL Utllities Public Other Off-stte Improvements Type Public Private Landscaping TYPICAL Electricity [:><J 100 AMP Street ASPHALT [:><J D Driveway Surface GRAVEL Gas [:><J LP Curb/gutter NONE D D Apparent easements UTILITIES AND DRAINAGE Water D WELL Sidewalk NONE D D FEMA Special Rood Hazard Area DYes [:><J No Sanitary sewer g SEPTIC Streetlights YES [:><J D FEMA Zone C Map Date 07/18/1983 Storm sewer I I NONE AIIev NONE . n Fi FEMA Man No. 2706890015B Comments (apparent adverse easements, encroachments, special assessments, slide areas, illegal or legal nonconforming zoning use, etc.): NO UNFAVORABLE OR ADVERSE EASEMENTS ENCROACHMENTS OR CONDITIONS KNOWN OR NOTEDNO UNFAVORABLE OR ADVERSE EASEMENTS ENCROACHMENTS OR CONDITIONS KNOWN OR NOTED, WELL AND SEPTIC ARE COMMON IN SUBJECT , ,GENERAL DESCRIPTION EXTERIOR DESCRIPTION FOUNDATION BASEMENT INSULATION l ,'No. of Units ONE Foundation CONe BLOCK Slab NO Area Sq. Ft. 620 Roof D No. of Stories 1,5 Exterior Walis VINYL Crawl Space NONE % Finished 50 Ceiling TYP [:><J Type (DetJAtt.) DETACHED Roof Surface ASPH SHNGLS Basement 100% Ceiling SUS/UN Walls TYP [:><J Design (Style) 1,5 STORY Gutters & Dwnspts. METAL Sump Pump YES Walls DW/UNFIN Aoor D Existing/Proposed EXT Window Type DH/SLlDERS Dampness NONE NOTED Roor VYN/CON None D Age (Yrs,) 68 Storm/Screens COMBO Settlement NONE NOTED Outside Entry YES Unknown D Effective Aoe IYrs,\ 23 Manufactured House NO Infestation NONE NOTED ROOMS Fover Livin" Dinina Kttchen Den Familv Rm. Rec. Rm, Bedrooms # Baths Laundrv Other Area So, Fl. ~ Basement 1 .25 X 620 I Level 1 X 1 1 1 620 - Level 2 2 1 500 - : Rnished area above arade contains: 5 Rooms' 2 Bedroom(s\' 1 Bathls\: 1 120 Scuare Feet of Gross Livino Area INTERIOR Materials/Condition HEATING KITCHEN EQUIP. ATTIC AMENITIES CAR STORAGE: YES - Roars CP/HW/AVG Type FA Refrigerator [:><J None 0 Fireplace(s) # D None D Walls PLASTERlA VG Fuel LP Range/Oven [:><J Stairs 0 Patio 0 Garage # of cars Trim/Rnish OAKlAVG Condition UNKWN Disposal 0 Drop Stair D Deck WOOD/AVG [:><J Attached Bath Roor CER TILE/AVG COOLING Dishwasher t8J Scuttle D Porch D Detached THREE Bath Wainscot CER TILElAVG Central NO Fan/Hood 0 Floor D Fence D Buitt-In Doors PANEUAVG Other NO Microwave g Heated D Pool ,g Carport Condition N/A Washertnrver IXI Rnished ~ I I Drivewav AMPLE Additional features (special energy efficient ttems, etc.): SUBJECT HAS A WOOD DECK LARGE GARAGE AND AN ACRE OF LAND. Condition of the improvements, depreciation (physical, functional, and ex!emal), repairs needed, quality of construction, remodeling/additions, etc.: SUBJECT HAS BEEN INSPECTED FOR PHYSICAL FUNCTIONAL AND EXTERNAL INADEQUACIES, THE SUBJECT HAS NO APPARENT OBSOLESCENCE. \ \ / Adverse environmental conditions (such as, but notlimtted to, hazardous wastes, toxic substances, etc,) present in the improvements, on the stte, or in the immediate vicinity of the SUbject properly.: NO ADVERSE ENVIRONMENTAL CONDITIONS NOR EXTERNAL FACTORS WERE OBSERVED THAT WOULD AFFECT THE SUBJECTS MARKETABILITY, Freddie Mac Form 70 6/93 PAGE 1 OF 2 Fannie Mae Form 1004 6/93 Form UA2 - 'TOTAL for Windows' appraisal software by a la mode, inc. -1-800-ALAMODE lFile No, 01/03-2051 Paae #41 01/03-205 Valuation Section UNIFORM RESIDENTIAL APPRAISAL REPORT FileNo. 01/03-205 IESTIMATED SITE VALUE ..,................,......,....,............= $ 34 300 Comments on Cost Approach (such as, source of cost estimate, s~e value, ESTIMATED REPRODUCTiON COST-NEW-OF IMPROVEMENTS: square foot calculation and for HUD, VA and FmHA, the estimated remaining Dwelling 1 ,120 Sq. Ft @$ 125.00 = $ 140,000 economic I~e of the property): COST ESTIMATES BASED ON 310 Sq. Ft @$ 25,00 = 7,750 FIGURES OBTAINED FROM MARSHALL SWIFT COST ;. SEE SPECIAL FEATURES = 7,000 SERVICE. THE EXTRACTION METHOD WAS USED TO : Garage/Carport ~ Sq, Fl. @$ 25,00 = 23,850 ESTIMATE THE SITE VALUE. THE SITE VALUE IS NOT - Total Estimated Cost New.. ....,....... ,.. ....,= $ 178,600 EXCESSIVE FOR THE NEIGHBORHOOD.THE ESTIMATED _ Less Physical Functional Extemal REMAINING ECONOMIC LIFE OF THE SUBJECT IS 52 Depreciation 68.4571 1 =$ 68457 YEARS OF AN EXPECTED 75 YEAR LIFE. Depreciated Value of Improvements ...... .. ,.,.., ...... =$ 110143 'As-is'ValueofS~elmprovements .......... ,..,.... ,....... =$ 5000 INDICATED VALUE BY COST APPROACH . , ~$ 149,443 ITEM I SUBJECT COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO, 3 1831 Crosstown Blvd NW 2742 131ST AVE, NoW, 2249129TH AVE. NoW. 15451 PRAIRIE ROAD Address ANDOVER COON RAPIDS COON RAPIDS ANDOVER Proximitvto Sub1ect 2,74 miles 2,80 miles 1,35 miles Sales Price ~ DISCOVERY IS 119600 h 160500 l~ 190000 Price/Gross Livinn Area ~ <PI $ 97,55 <PI $ 124.42 <PI ~ 108.82 <P t Data and/or MLS-#2086722 MLS-#2036939 MLS-#2072507 Verification Source COUNTYIDRIVE-BY COUNTYIDRIVE-BY COUNTYIDRIVE-BY VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION: +(:)$ Adiust DESCRIPTION: +1-\$ Adlust OESCRIPTlON: +1-\$ Adlust , Sales or Rnancing CONVENTIONAL : CONVENTIONAL : CONVENTIONAL : , '::oncessions . UNKNOWN' UNKNOWN UNKNOWN Date of Salemme 11/2002: 6/2002 : 6/2002 : Location SUBURBAN/AV SUBURBAN/AV : SUBURBAN/AV : SUBURBAN/AV : LeasehoWFee Simnle FEE SIMPLE FEE SIMPLE: FEE SIMPLE: FEE SIMPLE : S~e 1.11 ACRES ..29 SF ; +4 100 .41 ACRES +3 500 5 ACRES : -19 450 View RESIDENTIAL RESIDENTIAL : RESIDENTIAL : RESIDENTIAL ; Desion and ADoeal 1.5STORY/AVG 1.5STORY/AVG: 1,5STORY/AVG : 1,5STORY/AVG : Qualitv of Construction AVERAGE AVERAGE: AVERAGE: AVERAGE; Aoe 68A123E 57 Al19E -2 000 55A118E -2 500 83A128E : +2 500 Condition AVERAGE AVERAGE- +15000 AVERAGE: AVERAGE-; +15000 Above Grade Total: Bdrms: Baths Total: Bdrms: Baths : Total: Bdrms: Baths : Total: Bdrms: Baths : Room Count 5 : 2 : 1 6: 3 : 1: -2,000 6: 4 : 1: -4,000 7: 4 : 1: -4,000 _ Gross Livinn Area 1 120 Sa, Fl. 1 226 Sn. Fl. : -2650 1 290 Sn. Fl. : -4250 1746 Sn, Fl. : -15650 _ Basement&Rnished 100%-310FSF PART-OFSF +3,100 100%-400FSF : PART-OFSF +3,100 _ Rooms Below Grade 1/0/,25-WO 0/0/0 '+3 000 2/0/0 +3 000 0/0/0 +3 000 . Functional Utilitv AVERAGE AVERAGE: AVERAGE: AVERAGE: : Heatinn/Coolinn FAlAVG FAlCEN/AVG: -1 500 FAlAVG: FAlAVG : - Enerov Efficient nems TYPICAL TYPICAL: TYPICAL: TYPICAL: Garane/Camort 3 CAR DET 1 CAR ATT : +6000 2 CAR DET : +3000 1 CAR DET : +6000 - Porch, Patio, Deck, DECKlAVG PATIO/AVG +1,000 NONE +2,000 NONE : +2,000 Rrenlacels\ etc. NONE NONE 1 FRPL -1 500 NONE : Fence Pool etc, NONE NONE : NONE : NONE : , , , , I I Net Adi. (totall IXI + r l - :~ 24050 il + IXI- :~ 750 r l + IXI- :$ 7500 Adjusted Saies Price I: I ] of Comnarable ~ 143 650 ~ 159750 h 182500 : ':omments on Sales Comparison (including the SUbject property's compatibiiity to the neighborhood, etc,): See attached addenda. \ J . ITEM SUBJECT COMPARABLE NO, 1 COMPARABLE NO, 2 COMPARABLE NO, 3 Date, Price and Data N/A N/A N/A N/A Source, for prior sales MLS/COUNTY MLS/COUNTY MLS/COUNTY MLS/COUNTY w~hin vear of annraisal Analysis of any current agreement of sale, option, or listing of subject property and analysis of any prior sales of subject and comparables within one year of the date of appraisal: THIS APPRAISAL WAS CONDUCTED FOR THE USE OF DISCOVERY OF VALUE. INDICATED VALUE BY SALES COMPARISON APPROACH ............, ......,........,......,.........., ,..,..,......,........,..'..,........ $ 165000 INDICATED VALUE BY INCOME APPROACH (nADDlicable\ Estimated Market Rent $ N/A 1M0, x Gross Rent Mullinlier N/A - ~ N/A This appraisal is made [8;] 'as is' 0 subject to the repairs, alterations, inspections or conditions listed below 0 subject to completion per plans & spec~ications. Conditions of Appraisal: THIS COMPLETE APPRAISAUSUMMARY REPORT IS INTENDED TO COMPLY WITH USPAP AND CONTAINS NO DEPARTURE FROM SPECIFIC GUIDELINES, Rnal Reconciiiation: THE MARKET ANALYSIS WAS GIVEN THE CONSIDERATION AS IT BEST REFLECTS THE ATTITUDES OF BUYERS AND SELLERS IN TO DAYS MARKET. THE INCOME APPROACH IS NOT UTILIZED DUE TO LIMITED DATA ESTIMATED VALUE ASSUMES A SUBJECT MARKETING TIME OF +/- 3 MONTHS, - The purpose of this appraisal is to estimate the market value of the real property that is the subject of this report, based on the above conditions and the certification, contingent - and limiting conditions, and market value definition that are stated in the attached Freddie Mac Form 439/FNMA form 1004B (Revised 6/93 ), _ I (WE) ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THATlS THE SUBJECT OF THIS REPORT, AS OF 1/14/2003 (WHICH IS THE DATE OF INSPECTION AND THE EFFECTIVE DATE OF THIS REPORT) TO BE $ - 165 000 . APPRAlSER:""'6W'~~lER./ ~ SUPEF\V1~ RY)Pp~lsERllliiiJIFREQUIRED): Si natur. ~ ~ 'I ' ./'A SianatrN ',.. t II f} {) [8;] Did 0 Did Not I 'lame LER--- -- i' Name' M RK I>tmCELL Inspect Property \ Date RtoQrfSianed January 15. 2003 Date ReDort Sinned Januarv 15 2003 State Certification # State State Certification # 20222915 State M N Or State License # 20283278 State MN Or State License # State Freddie Mac Form 70 6193 PAGE 2 OF 2 Fannie Mae Form 1004 6-93 Form UA2 - 'TOTAL for Windows' appraisal software by a la mode, inc. -1-S00-ALAMODE Supplemental Addendum IRle No. 01/03-2051 Paae #51 Rle No, 01/03-205 Borrowe[/Ciient STEVEN LOUDEN Pronertv Address 1831 Crosstown Blvd NW Cilv ANDOVER Countv ANOKA State MN ZiD Code 55304-2614 Lender MARKET STUDY LEGAL DESCRIPTION: THAT PRT OF NW1/4 OF SE1/4 SEC 22-32-24 DESC AS FOL: BEG AT A PT ON S LINE OF SD 1/4,1/4,873 FT E OF SW COR THEREOF, TH NL Y AT RT ANG TO SO S LINE 330 FT, TH E P RLL/W SO S LINE TO A PT PRLL/W & 1020 FT E OFW LINE OF SD 1/4,1/4, TH SLY PRLL/W SO W LINE TO SO S LINE, TH WL Y ALG SO S LINE 147 FT TO POB; EX RD; SUBJ TO EASE OF REC . URAR: Sales Comparison Comments ALL THREE COMP ARABLES HAVE MEANINGFUL A TTRlBUTES AND A BLENDED VALUE CONCLUSION WAS UTILIZED. ALL SALES ARE CLOSED, ADJUSTMENTS MADE FOR TIME, LAND,AGE, GLA,ROOM COUNT,BASEMENT FINISH/WO, GARAGE AND FIREPLACE. DUE TO LACK OF SALES OF SIMILAR AGE/SIZE/STYLE IT WAS NECESSARY TO GO BEYOND 1 MILE. THE SUBJECT HAS ADEQUATE COMPATIBILITY WITH THE SURROUNDING NEIGHBORHOOD. DUE TO THE NATURE OF THIS ASSIGNMENT RECOMMENDED <, GUIDELINES WERE EXCEEDED. DATA PRESENTED REPRESENTS THE BEST AVAILABLE AS "--J OF THE EFFECTIVE DATE OF THE REPORT. SALES 1 AND 3 WERE CONSIDERED TO BE BELOW AVERAGE CONDITION AS THEY WERE SOLD AS IS ACCORDING TO MLS. THEREFORE THEY WERE ADJUSTED ACCORDINGL Y.SITE SIZES WERE ADJUSTED @$5,OOO/ACRE. " '1 \../ , " ,_______.I : Form TACO - 'TOTAL for Windows' appraisal software by a la mode, inc. -1-800-ALAMODE lFile No. 01/03-2051 Paae #61 Subject Photo Page Borrower/Client STEVEN LOUDEN ProDertv Address 1831 Crosstown Blvd NW Citv ANDOVER Countv ANOKA State MN liD Code 55304-2614 Lender MARKET STUDY Subject Front 1831 Crosstown Blvd NW Sales Price DISCOVERY Gross LMng Area 1,120 - Total Rooms 5 T alai Bedrooms 2 - T alai Bathrooms 1 Location SUBURBAN/AV View RESIDENTIAL '~-: ---;."--;"" S~e 1.11 ACRES f j, i ' J; j, Quality AVERAGE ~ - ~ - "~~ Age 68A123E . .-.. , ....\.1~;:. :.' '_ _~~; . -- . ~ , .. ,;;;~.;~?/",.~..,~c~,"" ' '. ........-. ~,~.~;;,_:.~: ~ . ': Subject Rear Subject Street ". . - -, --'~-'---. -,...~",:'''~~- '" .d"-. - -, -' Form PiC3x5.SR - 'TOTAL for Windows' appraisal software by a la mode, Inc. -1-80o-ALAMODE [File No, 01/03-2051 Paae #71 Building Sketch (Page - 1) Borrower/Client STEVEN LOUDEN Pronertv Address 1831 Crosstown Blvd NW Citv ANDOVER Counlv ANOKA State MN Zio Code 55304-2614 Lender MARKET STUDY 25,0' 25.0' 36,0' 9.5' 6,0' DR 5,0' BED 3,0' LR BED 20,0' 14.0' 26.5' 11,5' KIT BATH 18,5' 14,5' FIRST FLOOR SECOND FLOOR " '...J " '--...- SKETCH CALCULATIONS Al 1<2. A 1 : 25,0 x 6.0 = 150,0 A2: 30.0x3.5= 105.0 A3: 33.0 x 10,5 = 346,5 1>3 A4: 18,5x1.0= 18,5 First Floor 620.0 D A5 : 25.0 x 20.0 = 500,0 Second Floor 500,0 Total Living Area 1120.0 D A6 : 36,0 x 26.5 = 954,0 Detached Garage 954,0 / Total Garage Area 954,0 " Form SKT,BldSkI- 'TOTAL for Windows' appraisai software by a la mode, inc. -1-800-ALAMODE IFile No, 01/03-2051 Paae #81 Comparable Photo Page Borrower/Client STEVEN LOUDEN ProDertv Address 1831 Crosstown Blvd NW Citv ANDOVER Countv ANOKA State MN ZiD Code 55304-2614 Lender MARKET STUDY Comparable 1 2742 131ST AVE. NoW. Prox. to Subject 2,74 miles Sale Price 119,600 Gross Uving Area 1,226 Total Rooms 6 Total Bedrooms 3 T alai Bathrooms 1 Location SUBURBAN/AV View RESIDENTIAL Stte ..29 SF Quality AVERAGE Age 57N19E Comparable 2 2249 129TH AVE. NoW. Prox. to Subject 2,80 miles Sale Price 160,500 Gross Uving Area 1,290 T alai Rooms 6 Total Bedrooms 4 T alai Bathrooms 1 Location SUBURBAN/AV View RESIDENTIAL Stte .41 ACRES Quality AVERAGE Age 55N18E Comparable 3 15451 PRAIRIE ROAD Prox. to Subject 1.35 miles Sale Price 190,000 Gross Living Area 1 ,746 Total Rooms 7 Total Bedrooms 4 Total Bathrooms 1 Location SUBURBAN/AV View RESIDENTIAL Stte 5 ACRES Quality AVERAGE Age 83N28E ~-. ~ . c.:.-, .of\:L~:.;:':- ;:::__",2::::'::::;-::'" ''-;'_: "-' . ,:,C.~'. '~-",~~-- , ~~---- .,j Form PIC3x5.CR - 'TOTAL for Windows' appraisal software by a la mode, inc. -1-800-ALAMODE IFile No. 01/03-2051 Paae #91 Location Map Borrower/Client STEVEN LOUDEN Pronertv Address 1831 Crosstown Blvd NW Citv ANDOVER County ANOKA State MN Zio Code 55304-2614 Lender MARKET STUDY ,-: I! : ~ i II ,,0' --- 'b,\ '" "t~ ~ jj 0 8 CO otc/, No r, i CllUnty Hwy 51 \ , ) ~\'Io'j.9 ~ '-J 1- CO \11 <b ~I' ,~ ,tI1 ~ t1> ~ \'IoS'/> .;;.~'{\ CO CclInWtWy2.1l C<lnatanca Blvd IlW ~ ..,' "'1 ~ ~ I 8 Comparable #1 274213151 AVE. !tw. r " % '-,j 0 " " ... CO .I IIUI1 er LUll BlIId NW III \ J . ...I ~ ~ " , " '" I c "'100-~ Uk. Blyd ~ C , ExIltolollln $I NW CO o.'t:I) I' C ... MaIn st NW t ,\: Z4Z = ... to $I". Holy 242 j C I 8 " CJ ... ... g J: '" !i- III t Jl '" Mercy Haspttal ~ = Q Edto__ - f l:J ,) C '_ Sand Creek '0 5 S~ CJ C '\ '04, ~{y~f2 ~ G '\ ~uo ",,- ,~) IlI2OO2 lAoinly Corp. aOT ~ I 1__ I Form MAP.LOC - 'TOTAL for Windows' appraisal software by a la mode, inc. -1-800-ALAMODE IFile No. 01/03-2051 Paae #101 DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requislle to a fair sale, the buyer and seller, each acting prudentiy, knowledgeably and assuming the price is not affected by undue stimulus. Implicll in this definition is the consummation of a sale as of a spectlied date and the passing of titie from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U,S. dDllars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions' granted by anyone associated with the sale. . Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a resull of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions, Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction, Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgement. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION ',-) CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the titie to it The appraiser assumes that the titie is good and marketable and, therefore, will not render any opinions about the titie. The property is appraised on the basis of II being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report in visuaiizing the property and understanding the appraiser's determination of its size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject slle is located in an identified Special Rood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value of the land in the cost approach at lis highest and best use and the improvements at their contributory value, These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used, 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc,) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing " " the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or ) adverse environmentai conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, and '..,,./ has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist Because the appraiser is not an expert in the field of environmental hazards. the appraisal report must not be considered as an environmental assessment of the property, 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct The appraiser does not assume responsibility for the accuracy of such lIems that were fumished by other parties. S. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisai Practice, 9, The appraiser has based his or her appraisal report and valuation conciusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 10. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower, the mortgagee or lis successors and assigns; the mortgage insurer, consullants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentaiity of the United States or any stale or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, pUblic relations, news, sales, or other media, ~ . \ , , '~J Freddie Mac Form 439 6-93 Page 1 of 2 Fannie Mae Form 1004B 6-93 VISION APPRAISALS INC. (612) 209-5021 Form ACR - 'TOTAL for Windows' appraisal software by a la mode, inc. -1-S00-ALAMODE IFile No. 01/03-2051 Paae #111 APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1, I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a doilar adjustment when appropriate to reflect the market reaction to those ttems of sign~icant variation. n a signnicant Rem in a comparable property is superior to, or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, ~ a sign~icant ttem in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any sign~icant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct 3. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specnied in this form, 4. I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias with respect to the participants in the transacijon, I did not base, either partiaily or completely, my analysis and/or the esijmate of market value in the appraisal report on the race, color, religion, sex, handicap, famiiial status, or naijonal origin of either the prospecijve owners or occupants of the subject property or of the present r ') owners or occupants of the properties in the vicinity of the subject property, ,-, 5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6, I was not required to report a predetermined value or direcijon in value that favors the cause of the ciient or any related party, the amount of the vaiue esijmate, the attainment of a spec~ic result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation, a spec~ic valuaijon, or the need to approve a specllic mortgage loan, 7. I performed this appraisal in conformity with the Unllorm Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the excepijon of the departure provision of those Standards, which does not apply. I acknowledge that an esijmate of a reasonable ijme for exposure in the open market is a condiijon in the definition of market value and the esijmate I developed is consistent with the markeijng time noted in the neighborhood secijon of this report, unless I have otherwise stated in the reconciiiaijon section. 8, I have personally inspected the interior and ex!erior areas of the subject property and the ex!erior of all properties listed as comparables in the appraisal report I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject stte, or on any stte within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the ex!ent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. n I relied on signnicant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specllic tasks performed by them in the reconciiiaijon secijon of this appraisal report. I certify that any individual so named is qualllied to perform the tasks. I have not authorized anyone to make a change to any Rem in the report; therefore, II an unauthorized change is made to the appraisal report, I will take no responsibility for tt, / <\ '-./ SUPERVISORY APPRAISER'S CERTIFICATION: n a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I direcfly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certificaijons numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report, ADDRESS OF PROPERTY APPRAISED: 1831 Crosstown Blvd NW, ANDOVER, MN 55304-2614 APPRAISER' SUPE~'SER (.nly If ""'''d)' S'""'*aM S,""'. 0 Name: R I' Name: K Date Sig : Januarv 15. 2003 Date Signed: Januarv 15, 2003 State Certification #: State Certification #: 20222915 or Stale License #: 20283278 or State License #: State: M N State: M N Expiration Date of Certification or License: 8/31/2003 Expiration Date of Certificaijon or license: 8/31/2003 [8j Did D Did Not Inspect Property , I ',,/ Freddie Mac Form 439 6-93 Page 2 of 2 Fannie Mae Form 1004B 6-93 Form ACR - 'TOTAL for Windows' appraisal software by a la mode, inc, -1-800-ALAMODE 6J ~ CITY OF ANDOVER 0 1685 CROSSTOWN BOULEVARD N.W, . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923. WWW.CLANDOVER.MN,US TO: Mayor and Councilmembers CC: John Erar, City Administrator FROM: SUBJECT: 2003-03 Council Goal/Water Utility Radio Read DATE: February 19,2003 INTRODUCTION In order to expedite the process of reading water meters, staff has looked at a Radio Reading System. This type of system would also allow staff to collect information on anyone particular meter at any time of day for the purpose of evaluating water consumption. To start off staff would concentrate only on the commercial customers but have the capability of expanding into the residential area, ~-J DISCUSSION Staff has been exploring the implementation of an automatic radio meter reading system for some time and feels a system provided by US Filter would be best to use with our water meters. The City purchases water meters from US Filter, but that is not the reason for wanting to use their system to read the meters. Staff feels they have a better system for doing what we want. Since we started looking into a radio system there have been improvements in the technologies that need our considerations. One system would require a person to drive throughout the area with a data collector and gather all the readings. This is the system that was first looked at. Since then, a new system has been developed which would only need the installation of data collectors throughout the City which would collect the information and relay it to our billing center for processing. This type of system would require less man-hour and could gather information on an as needed basis without having to go out to the area. It could be set up to gather readings once a day or more if the need was greater. Staff will continue to look at this automatic reading system to make sure the entire water system could be added at a later date. This automatic radio read system would only be used on the commercial system to start and have the capability of encompassing the entire water system. Of all the commercial water meters, there are a few in need of replacement because of their age. The plan is to replace some of the older meters now and work our way through the system over a period of a couple of years until all the meters have been upgraded. By doing this, the unaccounted for water percentage will go '. down because the meters will be more accurate and the water system will have an inventory of .'-.J meters of one brand instead of multiple brands. .. \ \ J BUDGET IMPACT Dollars have been set aside for a Radio Read System in the Water Fund - Fund Balance. RECOMMENDATION It is staffs recommendation that the City continue to work with US Filter and put together a system package that will work with the amount budgeted. Staff also wants to look at which type of system would be most beneficial for years to come. Respectfully submitted, SS~p Brian Kraabe , , , , , I