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1997-07-07 CC Agenda/PacketALBERTVILLE CITY COUNCIL AGE M July 7, 1997 7:00 PM 1. CALL TO ORDER/ROLL CALL/ADOPT (Mayor/Clerk/Council) 2. MINUTES (Council) June 17, 1997, Regular Meeting 3. AUDITING CLAIMS (Council) 4. CITIZEN FORUM - 10 Minute Limit 5. CONSENT AGENDA [ * ] (counci 1) a. June Financial Statement b. WWTF Monthly Operations Report (May 1997) C. RESOLUTION #1997-37 (ESTABLISHING A DEVELOPMENT REVIEW SCHEDULE FOR 1997-1998 EFFECTIVE AS OF JULY 7, 1997) d. Non -Intoxicating Malt Liquor License for JCS Softball League at City Park July 18-20. e. Approve 1998 Assessment Contract 6. DEPARTMENT BUSINESS a. PLANNING & ZONING Request to Extend Brittany Kay Estates Final Plat b. PUBLIC WORKS None C. ENGINEERING 1) Lift Station Control Panel Cost for Relocation 2) Award Bids for 1997 Street Overlay and Patching Project d . LEGAL _ 1) STMA Ice Arena Financial Study - Joint Powers Agreement 2) Senior Housing Private Bond Reimbursement Resolution (Resolution #1997-38 - RESOLUTION GIVING PRELIMINARY APPROVAL TO A SENIOR HOUSING PROJECT ON BEHALF OF ZEDAKAH FOUNDATION AND CALLING PUBLIC HEARING) 3) Discussion of potential Don's Bus Garage TIF e. GENERAL GOVERNMENT 1} Discussion on landfill as an acceptable conditional use of agricultural lands (Rod McGillivray of Superior FCR Landfill, Inc.) - 10 minute presentation 2) City Hall Roof and Penthouse Repair - Authorize quotes for roof replacement and penthouse residing (PW Committee to open quotes July 29) 3) City Administrator Contract 4) Approve Release of CD# 10341 in favor of Dennis Fehn and the City of Albertville (Surety for site improvements) 5) Discuss Moratorium on billboards (Mayor Olsen) 7. ADJOURNMENT (council) 2 r I UPC OKING MEETINGS/ IMPORTANT DATES July 8 Planning & Zoning Meeting July 21 City Council Meeting July 22 Special Planning & Zoning Meeting (if required) July 23 Special Joint Council Meeting with City of Otsego July 28 Joint Powers Board Meeting August 4 City Council Meeting August 12 Planning & Zoning Meeting 7:00 EM 7:00 HMI 7:00 EM 7:00 Sri 7:00 EM 7:00 IM 7:00 IM KI ALBMTVILLE CITY COUNCIL June 17, 1997 Albertville City Hall 7:00 PM PRESENT: Mayor Mark Olsen, Councilmembers Patricia Stalberger, Duane Berning, Robert Gundersen, and John Vetsch, City Administrator Garrison Hale, City Clerk Linda Houghton, City Engineer Peter Carlson, and City Attorney Mike Couri Mayor Olsen called the regular meeting of the Albertville City Council to order. The agenda was amended by adding the following: Item 6b - Consider amendment of Resolution #1995-14 regarding summer work hours for the Public Works Department Item 6c(3) - Consider change order for CSAH 19/37 Realignment Project Item 7e(10) - Consider hiring office help Item 7e(11) - Schedule joint meeting with Otsego City Council to discuss race track proposal Olsen made a motion to approve the agenda as amended. Berning seconded the motion. All voted aye. The minutes of the June 3, 1997, meeting were amended at Paragraph 9, Page 4 to read as follows: ". . . drainage onto the Heuring property will be reduced by 80%." Berning made a motion to approve the minutes as amended. Gundersen seconded the motion. All voted aye. Berning made a motion to approve payment of Check #'s 11005 - 11007, Check #'s 11009 - 11038, and Check #'s 11040 - 11044 as presented, and to Check #11045 to Mark & Carolyn Bauer in the amount of $115.00. Administrator Hale was directed to contact the City of ST. Michael and ISD #885 regarding payment of Check #11039. Gundersen seconded the motion. All voted aye. No one in the audience chose to address the City Council under "Citizen Forum". Olsen made a motion to approve the General Fund Revenue/Expenditures Report for the month of May as presented. Berning seconded the motion. All voted aye. Olsen made a motion to adopt RESOLUTION #1997-34 titled A RESOLUTION DENYING THE REQUEST FOR A REZONING FROM R-lA TO PLANNED UNIT DEVELOPMENT AND PRELIMINARY PLAT APPROVAL AS REQUESTED BY PILOT LAND DEVELOPMENT COMPANY FOR THE CENTER OAKS PROPERTY. Berning seconded the motion. All voted aye. Olsen made a motion to adopt RESOLUTION #1997-35 titled A r ALBERTVILLE CITY COUNCIL June 17, 1997 Page 2 of 6 RESOLUTION DENYING THE REQUEST FOR A REZONING FROM R-lA TO PLANNED UNIT DEVELOPMENT AND PRELIMINARY PLAT APPROVAL AS REQUESTED BY PILOT LAND DEVELOPMENT COMPANY FOR THE CEDAR CREEK NORTH PROJECT. Berning seconded the motion. All voted aye. Councilmember Berning removed himself from the Council at 7:13 14W City Attorney Couri reviewed the 2.0 acre subdivision platted by the City as Vetsch Commercial Park. The parcel will be sold to David and Jeanne Vetsch for construction of a cabinet shop. Stalberger made a motion to grant preliminary and final plat approval for the Vetsch Commercial Park. Gundersen seconded the motion. All voted aye. The Council discussed the request for a variance of five feet from the front yard setback for Vetsch Custom Cabinets. The variance is necessary to allow the building to be constructed on the soils corrected area of the parcel. Proposed front setback of the building is 30 feet. The Council reviewed the site plat for the Vetsch Custom Cabinet building, as proposed with the 30 foot front yard setback. Olsen made a motion to adopt the Findings of Fact and Decision, as amended by deleting Item #11, granting a five foot setback variance and approving the site plan for Vetsch Custom Cabinets. Stalberger seconded the motion. All voted aye. Councilmember Berning rejoined the Council meeting at 7:40 PM. Councilmember Stalberger reported that since the public works department has changed the starting time for summer work hours, an amendment should be approved to Resolution #1995-14. Other Council members were unaware that the hours had been changed. City Administrator Hale explained that during some specific times, such as cracksealing and Friendly City Days preparation, he had approved the earlier start times for the public works department. Councilmember Berning and Vetsch both indicated that it is their preference that the hours remain unchanged and that the city administrator could approve the specific times when an earlier start time is warranted. Mayor Olsen stated that he feels that daily start times and hours are less important than that 40 hours a week are worked. Olsen made a motion to amend Resolution #1995-14 to allow the public works department to work from 7:00 AM to 3:30 PM effective through September 15, 1997. Stalberger seconded the motion. ALBERTVILLE CITY COUNCIL June 17, 1997 Page 3 of 6 Gundersen and Olsen voted aye. Berning, Stalberger and Vetsch voted no. The motion to amend the resolution failed. City Engineer Carlson explained that the lift station control panel on 61st Street is creating a line of site problem for the reconstructed CSAH 37. Carlson estimates the cost to relocate the control panel to be $3,000 or less. City Administrator Hale reported that NSP wants the electric pole in the same area relocated and underground wire installed to the new location. Since the City owns the pole, it is the city's responsibility for the costs. City Engineer Carlson indicated he could see no necessity or urgency to relocate the pole for the CSAH 19/37 project. Don Jensen suggested to the Council that perhaps there may be other funding options possible for the pole relocation through NSP, such as a minimal rate increase per kilowatt hour on the City's street lighting bill. Berning made a motion to authorize the city engineer to proceed with getting a contractor to relocate the lift station control panel from the northerly to the southerly side at a not -to - exceed cost of $3,000. The cost will be paid through the wastewater treatment fund. Further, to authorize the city engineer to work with NSP on funding the pole relocation. If it becomes necessary to relocate the pole prior to the next Council meeting, the mayor and/or acting mayor are authorized to approve an agreement. Stalberger seconded the motion. All voted aye. Carlson explained he has gotten estimates from both contractors working on the CSAH 19/37 project to lower the culvert under the railroad tracks of around $40,000. There is basically only one contractor who jacks under railroad tracks for culverts and both project contractors would use that contractor. The City has the option of negotiating a change order for the CSAH 19/37 Intersection Realignment Project and avoid having to bid the project out. Carlson believes a change order would be by far the easiest and quickest method of lowering the culvert. Berning made a motion authorizing the engineer to negotiate a change order for the CSAH 19/37 Realignment Project for the lowering of the culvert under the railroad tracks with Wright County and the contractor. Funding the culvert lowering project will come from the Storm Water Fund. Gundersen seconded the motion. All voted aye. Carlson discussed the change order presented from Wright County Assistant Engineer Virgil Hawkins regarding paths along CSAH 37 from Kal land to 60th Street and on the west side of CSAH 19 from } ALBERTVILLE CITY COUNCIL June 17, 1997 Page 4 of 6 I-94 to CSAH 37. Estimated cost of the change order $19,000+. Carlson believes it is easier and less expensive to acquire the easement separate from the road project, since no one is sure of the most desirable location. Olsen made a motion to deny the change order for the CSAH 19/37 Intersection Realignment Project for paths. Berning seconded the motion. All voted aye. The Council considered the preliminary and final plat of Cottages of Albertville and the rezoning of the property to Planned Unit Development (PUD). City Attorney Couri recommended that the rezoning to PUD of Outlots A and B be denied until the developer provides the final plan for the outlots. Couri explained the plat includes a private road into the rental portion of the project. He reviewed separate developer's agreements for the rental and owner units with the Council. The agreement requires trails be constructed on the plat. City Engineer Carlson recommended that the Council require a cash park dedication rather than having the proposed trail constructed. Carlson feels there is no reason to construct a trail that leads nowhere at this time. Councilmember Berning reported that both the planner and the Planning Commission want the trail constructed. Berning made a motion to adopt the Findings of Fact & Decision for the Cottages of Albertville plat granting the rezoning request to PUD for the property with the exception that Outlots A and B will remain as presently zoned until the developer presents _the final plan for the outlots, preliminary plat approval, final plat approval, and site plan approval. Stalberger seconded the motion. All voted aye. Berning made a motion to approve the Developer's Agreements for the rental and the owner -occupied cottages. Vetsch seconded the motion. All voted aye. The Council reviewed the final plat for Parkside 4th Addition. Berning made a motion to adopt the Findings of Fact & Decision as amended, granting final plat approval for the Parkside 4th Addition. Stalberger seconded the motion. All voted aye. Berning made a motion to approve the Developer's Agreement for the Parkside 4th Addition, with the surety amounts to be adjusted after the actual bids are received, and trails will not be required to be constructed in lieu of a cash park dedication fee. Olsen seconded the motion. All voted aye. ALBERTVILLE CITY COUNCIL June 17, 1997 Page 5 of 6 Berning made a motion to approve the Grading Contract for the Parkside Commercial Park as presented. Stalberger seconded the motion. All voted aye. City Attorney Couri reported a decision from the Veteran's Preference Hearing has been reached. By a two to one vote, the Commissioners found in favor of the City. The minority opinion of one of the Commissioners has also been filed with the City Clerk. Mr. Lindsay will remain in the position of Maintenance Worker II. However, the Commissioners recommended that the Council review the job description of Maintenance Worker II to determine if it describes the duties that are actually performed. Olsen made a motion authorizing the clerk to issue payment of $100 to each of the Veterans' Preference Hearing Commissioners and to send a letter to each thanking them for their service. Stalberger seconded the motion. All voted aye. City Administrator Hale reported he has spoken to the Wright County Assessor regarding the market value of the parcel adjoining the Franklin Outdoor Sign Company lot and found that for tax purposes the market value of the parcel is $7,200. However, Assessor Greg Kramber stated that the parcel is of little value on its own. City Attorney Couri explained that he had spoken with Diane Hey, who, at the last City Council meeting, expressed via letter her interest in the property. She is no longer interested in the purchase of the parcel. Mayor Olsen suggested the Planning Commission be consulted as far as the plan for trail easements. Olsen made a motion to table further discussion of the sale of the parcel until the Planning Commission has indicated if there is a need for a trail easement over the parcel. Stalberger seconded the motion. All voted aye. The Council discussed the establishment of ''a Public Safety Committee to work with police and fire protection issues. Gundersen volunteered to set up and participate as a member of the Committee. Gundersen made a motion to establish a Public Safety Committee with consisting of two Councilmembers (Gundersen and Stalberger), the fire chief or the assistant fire chief, and a citizen -at -large. Berning seconded the motion. All voted aye. The Council reviewed the Sheriff's Department hourly rates schedule for 1998 and 1999. Consideration will be given during budget meetings to the number of daily hours to contract police protection. ALBERTVILLE CITY COUNCIL June 17, 1997 Page 6 of 6 Berning made a motion to authorize the city attorney to notify School Street Development of the City's intention to declare a default of the Developer's Agreement on the grading of the second Westwind 3rd Addition lot, advising the developer he has 30 days to complete the grading. If the developer does not complete the work satisfactorily within the 30 day time limit, the City Administrator is authorized to get quotes from contractors and have the work completed. The costs of having the work done will be assessed to the property. Gundersen seconded the motion. All voted aye. The Council discussed the changes in the law regarding Local Performance Measures funds. Olsen made a motion to authorize the mayor and the acting mayor to sign the LPM form and return it to the Department of Revenue before June 30, 1997. Berning seconded the motion. All voted aye. Olsen made a motion directing the Planning Commission to review the Zoning Ordinance relating to housing size and make a recommendation to the Council about increasing the minimum size requirements. Vetsch seconded the motion. All voted aye. Olsen made a motion directing the Planning Commission to review the Sign Ordinance relating to billboard spacing, zoning and a potential moratorium on billboard construction, as well a recommendation on a fee schedule for billboards. Berning seconded the motion. All voted aye. The Council set the date for the annual Otsego Creek Authority meeting for October 8, 1997, at the Albertville City Hall at 7:00 PM. Stalberger made a motion not to renew the Cities membership in the Minnesota Association of Small Cities. Vetsch seconded the motion. All voted aye. The Council discussed part-time or full-time office help. Stalberger made a motion approving the staff to contact Temporary Assets of Rogers to locate a secretary/receptionist for 24 hours a week. Vetsch seconded the motion. All voted aye. Berning made a motion to schedule a special joint council meeting with the City of Otsego to discuss a proposed racetrack on July 23, 1997, at 7:00 PM. Stalberger seconded the motion. All voted aye. Stalberger made a motion to adjourn at 11:50 PM. Berning seconded the motion. All voted aye. Linda Houghton, City Clerk Mark Olsen, Mayor r y 3 CITY OF ALB RTVILLE BILLS TO BE PAID July 7, 1997 Check No. Vendor Reason Amount 11055 Affordable Sanitation Portable Toilets 191.70 11056 AirTouch Cellular F.D. Cell Phone 5.56 11057 Albertville Body & Fender Pickup 68.00 11058 Anoka Technical College Tuition 324.00 11059 Dehmer Fire Protection Fire Department 170.65 11060 Delta Dental Dental Insurance 112.65 11061 Don's Auto Service Fire Dept. Gas 46.29 11062 Honey -Do Lawn Service, Inc. Monthly Charges 621.96 11063 Kennedy & Graven Legal Fees 637.70 11064 G.D. LaPlant Sanitation Garbage Service 89.87 11065 Little Tike Commercial Play Picnic Tables 1,065.00 11066 Medica Group Health Ins. 930.79 11067 Minnegasco Natural Gas 45.29 11068 Office Max Office Supplies 121.35 11069 City of Otsego Grading 3/31-5/19 262.50 11070 Precision Auto Repair, Inc. Repairs 40.82 11071 Professional Services Group July WWTF Cont. 7,782.59 11072 San -Tom Enterprises, Inc. Street Sweeping 247.00 11073 Sentry Systems Inc. Monitoring/Park 57.51 11074 Springsted Ice Arena Fin. 2,109.19 11075 Sprint Long Distance 30.13 11076 Sprint -United Telephone Telephone Service 334.50 11077 Sunshine Lawn Service City Park 65.00 11078 11079 Wright County Treasurer Wright -Hennepin Police Protection 5,246.88 Street Lights 22.54 11080 Radzwill & Couri Monthly Service 9,828.00 Total $30,457.47 Sa. CITY OF ITJ FIMNCIAL S'TAT Mar 28 - June 30, 1997 Beginning Cash Balance May 28, 1997 $163,135.19 INCOME (May 28 - June 30) 3.2 Licenses 40.00 Building Permits 21,119.10 Dog License 20.00 Donations 6,500.00 Fines/Forfiets 76.00 Fire Contract 6,121.74 Interest - April 158.65 Loan Payment - Fraser 689.06 Park Dedication Fees 51,500.00 Park Rent 9,476.31 P & Z Fees 2,650.00 Sewer/Storm Water 18,905.36 Special Assessments 1,533.67 TAC Fees 9,950.00 Title Search 40.00 Miscellaneous 119.00 TOTAL INCOME 129,040.24 EXPENSES (May 28 - June 30) Check Vs 10965 -10998 (Approved 6/3/97) 44,581.31 Check Vs 11005 - 11045 (Approved 6/17/97) 38,580.94 Preapproved Checks 66,224.04 (List Attached) TOTAL EXPENSES 149,386-.27 Ending Cash Balance June 30, 1997 $142,789.16 . j CD @9226 - Alb. Development Corp. matures 7/2/97 CD #300116 - AFD - matures 12/26.97 @ 4.6% CD #22202 - matures 4/07/98 @ 6.12% Dain Bosworth Investments (3/31/97) TOTAL INVESTMWTS Money Markey Savings Acct. (5/30/97) 7,392.08 24,618.92 554,777.10 1,316,190.63 91.902.978.73 $305,676.26 CITY OF ALBERTVILLE PREMITHORI$ED CHECKS ISSUED May 29 - June 30, 1997 Check No. Vendor Reason Amount Payroll Ending 05/30/97 Ck. #1880-1892 1,025.07 10999 Highland Bank May Federal Taxes 2,880.95 11000 MN Dept. of Revenue May State Income 449.72 11001 PERA 5/10 - 5/23 352.73 11002 USCM Midwest Payroll Deduction 92.00 Payroll Ending 06/06/97 Ck. #1893-1896 2,841.57 11004 USCM Midwest Payroll Deduction 92.00 11046 Mark Daleiden Veteran's Pref. Hear. 100.00 11047 Ken Jude Veteran's Pref. Hear. 100.00 11048 Donald Leuer Veteran's Pref. Hear. 100.00 11049 Wright County Court Peterson Parcel 44,332.00 Payroll Ending 06/20/97 Ck. #1897-1899 2,840.17 11050 Alb. Friendly City Days Jaycees/Lions 6,500.00 11501 BNSF Railway Permit Fee 3,000.00 11502 PERA 6/7 - 6/20 352.72 11503 USCM Midwest Payroll Deduction 92.00 Elected/Appointed - June Ck. #1900 - 1912 1,043.54 TOTAL $ 66,224.04 CITY OF ALBERTVILLE DOtETY OF ` WRIGHT STATE OF KINIESMA LUTION #1"7-37 ESTABLISHING A DEV--- F lT REVIEW 3r FOR 1"7-1"8 EFFECTIVE AS OF JULY 7, 1"7 WHEREAS, the City Council of the City of Albertville is desirous of establishing a development review schedule for processing development related issues; and WHEREAS, the City Council is establishing with this resolution what the schedule will be; NOW, TSESIEFORE BE IT RESOLVED, that the City Council of Albertville, Wright County, Minnesota, does hereby adopt this resolution and the "DEVELOPMENT REVIEW SCHEDULE 1997-1998" attached. ADOPTED BY THE CITY COUNCIL OF THE CITY OF ALBERTVILLE THIS 7th DAY OF JULY, 1997. Mark S. Olsen, Mayor ATTEST: Linda Houghton, City Clerk SG ALBERTVILLE WASTEWATER TREATMENT FACILITY May 1997 MONTHLY OPERATIONS REPORT f- Submitted by: Kept' Br Date: June 13, 1997 610 Professional Services Group 3320 Lander Avenue, NE St. Michael, Minnesota 55376 (612) 497-8309 fax: (612) 497-8312 ALBERTVILLE WASTEWATER TREATMENT FACILITY Monthly Operations Report May 1997 Executive Summary Albertville met all of its NPDES permit requirements for the month of May. Average Biochemical Oxygen Demand in the effluent was 4.8 mg/I and the average Total Suspended Solids concentration was 6.4 mgA. Total Phosphorous averaged 0.413 mg/I. Average flow was 0.074 million gallons per day. Operations Alum feed was reduced near the end of the month to about 25 gallons per day. Algae has decreased in the ponds, therefore the oxygen levels are coming down. Pond #3 and the clarifier are saturated with Daphnia, a microorganism that is often found in pond situations and is an indicator of clean water. Two aerators in Pond #1 have been turned off. Quarterly laboratory quality control and quality assurance unknown samples were analyzed . and submitted for evaluation. There were some unusually low influent flow numbers the last half of the month that appear to be caused by a weak or intermittent signal from the flow meter. The meter housing was pulled several times to check and clean for, corrosion. Maintenance Pump #1 in the Main Lift failed. At the same time, Pump #2 would not continue to run. In this emergency situation, Waldor Pump was contacted to bring in a temporary pump until the repairs could be made. Mr. Lindsay helped PSG staff set up the emergency transfer pump should it was needed. When Waldor arrived and addressed the situation, the problems were found to be two -fold. First, the seal in Pump #1 had failed and oil filled the stator housing. Second, the Pump #2 overload block was found to be bad (not the pump). Pump #2 was changed over to the #1 controls until the part could be replaced. Pump #1 was repaired and the overload block for #2 was replaced. The situations that seem to be contributing to the problems at the main lift station (Pump #2 had failed this past winter) are several. Due to the lift station size, the pumps kick on and off frequently (about twice as often as is recommended at maximum.) We have separated the on and off floats as far as possible already. There is also no baffle where the raw wastewater enters the lift station, causing air entrainment in that pump. This causes longer running times and excessive vibration. We are looking to have a baffle placed in the wetwell to relieve this situation. As an added note, the main lift station is currently operated on single phase power. Three phase power is available at the plant (it was not when the lift station was constructed), and the pump manufacturer, electricians, and technicians all recommend converting to three phase power if at all possible. It is much easier on the pumps and will save in the life of the pump. This is likely not the cause of the immediate problems but may contribute to premature fail and should definitely be looked at for a solution to improve the life of the pumps. UV channel and bulbs were cleaned. One bulb was replaced. Control structures were cleaned. Alum pump was cleaned. Grounds were mowed. Cleaned effluent weir and clarifier weir and troughs. Cleaned corrosion on influent mag meter as it was not working properly. 61 st Street lift station grease and scum buildup was cleaned out. Regular monthly preventative maintenance included generator servicing, sump pump inspection, MCC cleaning and inspection and replacement of bulbs, fire extinguisher checks, flush eyewash and emergency shower, and others. PSG Regional Safety Manager, Sherry Tompkins, performed the annual safety audit A detailed chemical awareness training and system components and troubleshooting training was received. Regulatory Communications NPDES Discharge Monitoring Report Client ! Public Relations Thanks to Ken for his help in setting up the emergency pump when the main lift went down. Ken also reviewed the unit operation with PSG staff. PSG responded to a call from Corrow Sanitation when City staff were unavailable. A storm drain grate had broken and fallen into the manhole on Lannon Avenue, leaving a dangerous situation. A replacement was retrieved from the WWTP grounds and placed on the storm drain. A Central Region Manager's and Safety Coordinator's meeting will be held in June at Riverwood Conference Center. Regular communications have been maintained between PSG and Gary Hale and Pete Carlson. ina ci Financial report reflects all activity in the budget year. The financial data does not reflect May bills paid in June. NPDES Discharge Monitoring Report DMR Addendum's Loadings Summary Client Status Report Phosphorous Study Update ALSEMILLE VVWTF LOADINOS Cor*W Values 3 Tflgpus: Contract Vdus 3 Trlgp m: AV*- 0.1590 MGD Aw 307 4 107 0 Hg1t• 0.1896 MOO Hgtl- 380 0 224 0 Low. 0.1284 MGD Low- 248 0 1500 Design: 0.3150 MGD 388 0 388 ! FLOW 12 mo % of TSS 12 mo % of CSOD % of tt.H MOD ......H... AvV. Design H.HH.t .....HH.H .H. mgA Lbs. ..... ..HHH .HH.... Avg. ... .H.. ........... Design ..... .�n93 ............ ........ Lbs. Avg. ........ ............ Design .......... 1995 Jan 0.151 384 483 240 302 Feb 0.143 205 339 184 219 Mor 0.164 286 394 191 281 Apr 0. IT? 99 145 92 136 May 0.172 274 392 US 212 Jun 0.163 232 315 133 181 Jul 0.152 222 281 154 195 Aug 0.174 288 418 138 197 Sep 0.185 234 322 100 138 Oct 0.161 294 395 122 164 Nov 0.183 78 100 68 92 Dec 0.156 405 527 234 304 1996 Jan 0.161 0.1626 $1.61% 250 336 331 $9.93% 175 235 195 52.87% Feb 0.158 0.1638 52.01% 433 571 350 95.10% 178 235 198 53.21% Mar 0.179 0.1651 52.41% 312 486 350 98.79% 221 330 202 $4.70% Apr 0.190 0.1600 52.70% 338 ' 527 388 105.43% 131 205 207 55.38% Meg 0.198 0.1802 63.39% 388 841 409 111.05% 169 279 213 57.87% Jut 0.203 0.1715 54.44% 354 599 432 117.48% 161 256 219 59.57% Jul 0.181 0.1723 54.88% 248 333 437 118.65% 129 173 21T 59.07% Aug 0.141 0.1895 53.01% 558 858 458 124.04% 179 210 218 59.37% Sep 0.141 0.1675 $3.17% 825 735 491 133.40% 145 171 221 60A1% Oct 0.183 0.1677 53.23% 274 372 489 132.89% 144 190 224 80.83% Nov 0.250 0.1740 55.53% 244 509 523 142.01% 141 294 241 85.40% Dee 0.111 0.1762 55.93% 309 441 515 140.05% 323 481 254 88.94% 1997 Jon 0.179 0.1777 50.40% 432 645 541 147.08% 180 269 255 89.70% Feb 0.183 0.1798 57.00% 225 343 522 141.92% 148 220 256 09.50% Mar 0.198 0.1913 57.67% 309 510 526 142.92% 176 291 252 88.61% Apr 0.162 0.1792 58.80% 239 322 509 138.27% 129 174 250 87.91% May 0.074 OARS 53.W% 322 199 472 128.27% 180 99 235 53.82% SCM0 CITY OF ALBEIRTVILLE C 0 LU Y OF WRIGHT STATE OF' KIN 11WTA RESOURICE #1997-37 ESTABLISHIM A DEVELMOM REVIEW SQ�JDULE FOR 1997-1998 EFFECTIVE AS OF JULY 7, 1997 NKRU AS, the City Council of the City of Albertville is desirous of establishing a development review schedule for processing development related issues; and WHEREAS, the City Council is establishing with this resolution what the schedule will be; NOW, TB1119FORE BE IT RESOLVED, .that the City Council of Albertville, Wright County, Minnesota, does hereby adopt this resolution and the "DEVELOPMENT REVIEW SCHEDULE 1997-1998" attached. ADOPTED BY THE CITY COUNCIL OF THE CITY OF ALBERTVILLE THIS 7th DAY OF JULY, 1997. Mark S. Olsen, Mayor ATTEST: Linda Houghton, City Clerk N en o0 N �] Q z N S. N N t v t 11 �" d W) N u Ei N N N rn L� � z c�� -. � �, en CN _ 00 s .� i� ri �' z A ti u, d 2 4 Q Q rA cn CIA Neq N a d N " .� p v .� N N N ■ U A cn O 00 o u ... �O a v p h •C d co) O Z a •� si d .� .� Q a � U 0 S r i Q �� W o ��'+ n U4 4 f y N ,� N r 00 N N to rE� I�r Z W Z. C$ N co)n E .� CL p E 41 ? �• �' i, N N u cNv 6002 O Z w <C 5975 Main Avenue N.E. P.O. Box 9 Albertville, MN 55301 (612) 497-3384 ROD o Fax: (612) 497-3210 A"LICA?ION FOR "-INTOXICATING NMT LIB LICEIME The undersigned certifies that it complies with Minnesota Statutes, Section 340.001, Subdivision 7, in that it qualifies as a "Bona Fide Club" Within that section, and that this appli- cation =awes petition for a limited license as a "Bona Fide Club" for a limited, non -intoxicating malt liquor license. A license fee of $10.00 per day is required to accompany this application. 1. Name of Applicant: 2. Name and Address of President and Secretary of Appl 3. Purpose f`I"y j or which funds derived will 5Z'Ft�c'll V4 1 ` '(5-ce '�- v l be used: rcant s � 7y xz Vt'Y-6�3 Jy `�,� o 2 L 4. Date of activity: 5. Premises from which non -intoxicating liquor will be--, %malt -i-v / dispensed on said date: 6'l "" 6. Hours �1 of operation:i 7. Number of previous license obtained this calendar year: 8. Name, address, telephone number and position held with Club of person signing this application: Date: � � C � Signat e f cants) 10 oJNTY �� � 2 M 'I o 0 ,dY 7855 June 25, 1997 Garrison L. Hale Albertville City Administrator 5975 Main Avenue NE P.O. Box 9 Albertville, MN 55301 RE: 1998 Assessment Contract Dear Garrison: 44 DOUGLAS M. GRUBER Wright County Assessor Wright County Government Center 10 2nd Street N. W. • Room 240 Buffalo, Minnesota 55313-1183 Phone: (612) 682-7367 / (612) 682.7368 FAX. (612) 682-6178 Enclosed is a contract for the assessment work for the 1998 assessment. The proposed fees for doing the assessment work for 1998 is $.25 per parcel higher than 1997. The current parcel count for your City is 1,073 parcels. The parcel count for the 1998 contract includes exempt properties which are reassessed once every six years. These are due to be revalued in 1998. If you have any questions or concerns about the enclosed contract or about the quality of our work, please feel free to contact me. We look forward to your continued cooperation and support of our office and staff. S cerely, / � J( 0A0 Dougl . Gruber Wright County Assessor DMG/df Enclosure Equal Opportunity l Affirmative Action Employer TO: Garrison L. Hale Albertville City Administrator 5975 Main Avenue NE P.O. Box 9 Albertville, MN 55301 RE: 1998 Assessment Contract I, Douglas M. Gruber, Wright County Assessor representing Wright County, do hereby contract with the City of Albertville to perform the duties of City assessor for said City for the year of 1998. Contract price is $6.75 per parcel which will include all expenses. Payment is due after the 1998 City Board of Review. Wright County Assessor Date: June 25, 1997 Garrison L. Hale City Administrator City of Albertville Date: I R.J.S. Builder, Inc. 3048 Wisconsin Avenue North Crystal, MN 55427 DATE: June 30, 1997 TO: City of Albertville FROM: Richard J. Sybrant, Developer SUBJECT: Brittany Kay Estates Final Plat Extension The final plat and all related plans are completed. However due to other developments which may affect the project, it is requested that preliminary approval be extended to the September Council meeting. Sincerely, ,r chard AJ.r O er r JON-25-1997 10:57 NWWS N 0 R T H E: R N W A T E R W 0 R K S 1917 FIRST AVENUE NORTH 4124 8.3rd AVENUE NORTH FARGO, ND 58102 BROOKLYN PARK, MN 55443 (701) 293-5511 (612) 560-5200 Page -1- of Guotation No. ## 23357 Job Name: A f4'7 .pert 4-r;il5A y 61 .01 1 S U P P L. Y 1201 AIRPORT ROAD BISMARCK, ND 56501 (701) 258-9760 4'r7y_ 50,/U LIFT STATION CONTROL PANEL To: ALBERTVILLE, CITY OF RELOCATION PO BOX 131 ALBERTVILLE, MN 55301--0131 Quote Date: 06/25/97 SALESMAN: MINNEAPOLIS MUNICIPAL A Expires: 07/30/97 Quoted By: REARDON PETER Terms : NET 30 DAYS F.O.B.: JOB SITE ------------------------------------------------------------------------------- ITEM QUANTITY U/M DESCRIPTION UNIT PRICE TOT PRICE A LIFT STATION CONTROL RELOCATION 1 HR PC SERVICE -- FIELD LABOR, MILEAGE, AND SERVICES OF LICENSED ELECTRICIAN TO MOVE CONTROL (PANEL AND ROWER POLE. 1 EA **** PLEASE NOTE **** LIFT STATION WILL NOT BE ALLOWED TO BACK -UFO. SEWER SERVICE IS GUARANTEED NOT TO BE INTERRUPTED. TOTAL ITEM A GRAND TOTAL 5850.00 PRICES QUOTED EXCLUDES FEDERAL, STATE, AND/OR I-OCAL TAXES. =SEN 1997 Street Overlay and Patching Albertville, MN SEH No. A-ALBEV 9707.00 113 S. FIFTH AVENUE. P O. BOX 1717 ST. CLOUD. MN 56302.1717 320252.4740 800 572.0617 320251.876Y! FAX ARCHITECTURE ENGINEERING ENVIRONMENTAL TRAN SPORTATtON BIDS DUE: Thursday, July 3,1997 @ 11:00 a.m. SHORT ELLIOTT HENDRICKSON INC. ST. PAUL. MN MINNEAPOLIS MN CHIPPEWA FALLS, WI MADISON, WI LAKE COUNTY IN EQUAL OPPORTUNITY EMPLOYER l Indoor Ice Arena Project St. Michael -Albertville, Minnesota May 16, 1997 Horne Office: 85 East Seventh Place Suite 100 St. Paul, MN 55101-2143 (612) 223-3000 minnespofis Office: Iowa Office: 120 South Sixth Street 30 Dunuggen Court Minneapolis, MN 55402-1800 Iowa City, IA 52240-2831 (612) 333.-9177 (319) 351-4614 Wisconsin Office: Washington Office: Kansas Office: 16655 West Biuemound Road 1860 K Street NW 4500 College Boulevard Suite 290 Suite 215 Suite 110 Brookfield, WI 53005.5935 Washington, D.C. 20006 Overland Park, KS 66211.1799 (414) 782-8222 (202) 466-3344 (913) 345-8062 Indoor Ice Arena Project INTRODUCTION AND PURPOSE The Cities of St. Michael and Albertville and Independent School District Number 885 ("Parties") together with the St. Michael -Albertville Youth Hockey Association ("STMA-YHA") currently have under consideration the funding of an ice arena. The purpose of this report is to review the financial implications of the arena as they relate to Minnesota Statute 475.58. For purposes of preparation of the report, we have relied on information provided by the Cities, the School District, STMA-YHA, the Minnesota Amateur Sports Commission (MASC) and other public sources believed to be reliable and having expertise in the building, use and operation of indoor ice arenas. The Parties have intended to execute a Joint Powers Agreement (Appendix 1) that supports the proposed ice arena. The agreement states that each entity agrees to issue a General Obligation Revenue Note in an amount not to exceed $133,333.33 for a total of $400,000.00. Included in this report is a copy of the St. Michael -Albertville Ice Arena grant application to MASC for a new facility (Appendix 11). This application contains various financial assumptions for the proposed facility and was a valuable source of information in the preparation of this, report. The Parties and STMA-YHA should be commended for their efforts. As with any projection of operating performance, subsequent events and changes in economic conditions, as well as changes. in people's interests and lifestyles, will cause actual results to vary from projected results. The variations may be positive or negative. Decisions to proceed or not to proceed should be based on careful evaluation of all available information and should ultimately rely on the extent that a public policy objective would be achieved by the development of the ice arena. APPLICABLE LEGISLATION Minnesota Statute 475.58 provides authorization for the financing of ice facilities. The authorization remains in effect until December 31, 1997. In summary, it provides that indoor ice arenas to be used primarily for youth athletic activities can be financed by municipal obligations without the requirement of an election if all the following conditions are met: (1) the facility revenues are pledged to the financing; (2) the facility and its financing are approved by at least two of the following governing bodies of a) the city, b) the school district, or c) the county, where the facility is located; (3) the governing body of the municipality finds, based on an analysis of a professional experienced in finance, that the revenues and other available money will repay the obligations, without reliance :on a property tax levy or general purpose state aid; and (4) no petition for election is timely filed. At least 30 days before issuing its obligations, the municipality has to hold a public hearing for which due notice was given. The obligations can be issued unless a petition signed by ten 2 SPRINGSTED Page 1 Indoor Ice Arena Project percent or more of the number of voters voting in the last general election is received within 20 days. "Municipality" for the purposes of this section includes cities, townships, counties and school districts. This legislation is commonly referred to as the "Mighty Ducks" bonding legislation. Absent this legislation the issuance of general obligation bonds for this purpose would require an election. Other financing alternatives are discussed in the section titled "Financing." MIGHTY DUCKS CAPITAL BONDING FUND In addition to the Mighty Ducks legislation, development of indoor ice arenas is also being encouraged through the provision of grants through the Mighty Ducks Capital Bonding Fund. The grants are being administered through MASC. MASC awarded a $200,000 grant to the Parties to facilitate rink construction. DEMOGRAPHICS The population base of the area to be served has grown over the last 15 years. The following table indicates population levels for the City, School District and County: Entity 1980 1990 1995 2994 2010 2020 City of Albertville(1),(2) 564 1,125 2,114 N/A NIA N/A City of St. Michael(1),(2),(4) 1,519 2,506 3,198 WA N/A N/A School District #885 (Pupils)(3) 1,157 1,414 2,131 2,448 N/A N/A Wright County(1),(2) 58,681 68,710 73,140 76,820 84,350 91,570 (1) 1980 and 1990 City and County figures provided by the U. S. Census Department. (2) 1995-2020 County figures provided by the Minnesota State Demographer's office. (3) District state 1980181, 1990191 and 199W6 enrollment. (4) St. Michael recently combined with Frankfort Township. The Township population is not reflected in the Minnesota State Demographer estimate. Population alone is not the sole determinant of the success of a facility, but the population in the area has grown and is projected to continue to grow. As with most indoor arenas, however, the available ice time is sold primarily to local youth hockey programs and the School District. The School District's student population has also grown over the years and is projected to continue growing at a rate of nearly 15 percent, or 317 additional students, from 1995 to 2000. Increases in demand for ice time will come from growth and/or expanded use by current users and the expected increased use for new girls' programs. The expected rapid growth of girls' hockey has been a driving force in the encouragement by the State for the development of additional indoor ice arenas. FA SPRINGSTED Page 2 i Indoor Ice Arena Project PROJECT REVENUES The primary revenue of an ice arena is the sale of prime time rental hours. Other sources of revenue make important contributions, but ice rental is by far the largest category of revenue available. Table 1 contains projected 1997 revenues for the proposed facility as compared to the 1996 actual/estimate and projected 1997 revenues for three similar ice arenas already in operation. The 1997 average revenues for the other three arenas is $168,175. STMA's overall anticipated operating revenue of $189,910 is higher than the average of other arenas studied. Concessions and vending revenues contained in the STMA budget are significantly higher than the other arenas listed. Adjusting for concession and vending revenues, STMA`s budget is consistent with the average for the three other arenas. We have relied on the revenue averages of the three arenas in preparing the annual proforma contained in the section titled "Current Financing Proposal." Table 2 shows five year revenue projections using information obtained in Appendix 11 and the average for the other three arenas studied. The average uses a constant rate of growth. Financing assumptions contained in this report use the average of the three arenas. SPRINGSTED Page 3 Indoor Ice Arena Project' A `w N TABLE 1 w 0. M ^ N C t0 Nf h A QrQ ~ Vol O o N pp O pp n d N N V' m t'f CD y _ - y � n9 Q N Of O c7 l+f .- c W tD O A N Ci Ilk N � ' yco N 4 < I �p Y�. V. CEffyaa �'�.N 00 CGONG. Igco 0IS 8 N8 ob r vO Oco C C a y � tr •- N in Cq .= C* N 110. M 46 to r t 8 8$tpp pgo 8 ppppS — CNN O 3 � d S aM S § P8- V. a y r SPRINGSiD Page Indoor Ice Arena Project TABLE 2 Atbertvitie / St. Michael, Minnesota Ice Arena Study STMA Revenue Projections 1997 1998 1999 2000 2001 Prime Rental Rate $120 $120 $125 $130 $130 # Hours 1,200 Operating Revenue Ice Rental 144,000 144,000 150,000 156,000 156,000 Public Skating 1,000 1,025 1,051 1,077 1,104 Skate Sharpening 660 677 693 711 729 Pro Shop 1,900 1,948 1,996 2,046 2,097 Concession B Vending 32,850 33,671 34,513 35,376 36,260 Skate School 300 Soo 1,000 1,500 1,500 Skate Clinics 300 500 600 615 Admissions 1,400 1,450 1,500 Advertising 4,000 4,100 4,203 4,308 4,415 Game Machines 300 308 315 323 331 Dry Floor 200 400 600 800 1,000 Broomball/Roiler Hockey 200 650 800 950 1,075 Fundraising Rental 4,500 6,000 7,350 8,350 8,600 Total Operating Revenue $189,910 $193,678 $204,421 $213,490 $215,226 Average Operating Revenue* $168,175 $172,379 $176,689 $181,106 $155,634 Rate of Growth Total Operating Revenue 1.98% 5.56% 4.44% 0.81%e Revenue (excluding ice Rental) 8.21% 9.55% 5.64% 3.02% Average Operating Revenue 2.60% 2.50% 2.50% 2.501/6 • Average operating revenue for Princeton, Farmington and West St. Paul ice arena's. P 13 SPRINGSTED Page 5 Indoor Ice Arena Project Prime time rental hours generally cover a period of time from school dismissal in the afternoon until 10:00 P.M., Monday through Thursday, slightly later on Friday, and all day Saturday and Sunday. Approximately 67 hours are available weekly. Table 3 illustrates potential rental hours during a week. The table was developed by Area Consulting and Construction, Inc. in 1994. Information provided by the Minnesota Ice Arena Managers Association indicates that prime time rental rates for the 1995196 season ranged from $90/hour to $180/hour with a median rental rate of $107.50/hour. Newer rinks tend to charge at the higher levels; older rinks charge at the lower levels. Full rental rate information can be found in Appendix 111. Other revenue sources for arenas include public skating, skate sharpening, pro shop, concession and vending, skate schools/clinics, advertising, dry floor events during the off- season if ice is removed, and game machines. In addition to revenues expected from the usual revenue sources, the facility is expected to benefit from an annual contribution of $4,700 from fund raising. The amount of fund raising that may contribute toward the proposed ice arena is subject to change. The likelihood of continued availability of these funds relies on factors outside the demand by users for the ice facility and should be considered a variable source of revenue. The effective scheduling and aggressive marketing of ice rental time remains the major factor in arena revenue generation. The primary users of the facility are expected to be the STMA, Monticello, Annandale/Maple Lake School Districts and their respective Youth Hockey Associations together with the Buffalo and Hanover Youth Hockey Associations. Ice usage information was obtained from the St. Michael -Albertville Ice Arena grant application (Appendix II), letters (Appendix IV) and through interviews with potential users of the proposed arena. The Athletic Directors at STMA and Annandale/Maple Lake School Districts indicated during phone conversations that the rental hours shown in Appendix II were appropriate estimates. We were unable to contact the Monticello High School Athletic Director to confirm the 75 hours shown in Appendix 11. These sources of information reveal that the youth hockey associations propose to lease between 600 and 900 hours and the participating school districts another 250 hours. In addition, the Blue Line Hockey Booster Club indicates that they would purchase 40 hours of ice time for the varsity hockey team and the STMA School District would need another 60 hours if a girl's program is added. There are no estimates for other potential users such as broomball, figure skating, or adult hockey. All together, there are approximately 900 to 1,200 hours anticipated for the proposed facility. This report uses 1,200 hours of ice time for determining revenues that would be generated by the facility. If operation of the ice skating facility is extended to more than 24 weeks, there will be a corresponding increase in operating expenses for the period of time during which ice must be maintained. The projections that have been provided to us indicate an hourly ice rental rate of $120 for prime time. The 1997 average for the other arenas shown in Table 1 is $112; however, Appendix 11 contains a memorandum dated September 13, 1996, that shows five area arenas that have rates between $105 and $140 with an average of $123. Furthermore, we are aware of scheduled increases in rental rates over those shown in the MIAMA survey (Appendix 111) that suggest that upon completion of this project, $120 per hour will not be an unusually high ice rental rate. Brooklyn Park, which is adding a second sheet of ice, is anticipating charging $135 per hour at its new facility. There is a tendency for newer arenas and those within the Twin Cities area to charge higher rates. SPRINGSTED Page 6 Indoor ice Arena Project TABLE 3 THE fi AND fi ARENA OPERATION Prime Ice Hours The following table shows what is considered "prime time" rental hours. The early evening hours from the time school dismisses until 5:10 P.M. could most likely be used by the high schools. starting Times: Monday through Thursday: 2:50 P.M. 4:00 P.M. 5:10 P.M. 6:20 P.M. 7:30 P.M. 8:40 P.M. Total 9:50 P.M. 28 Hours Friday: 2:50 P.M. 4:00 P.M. 5:10 P.M. 6:20 P.M. 7:30 P.M. 8:40 P.�. 9:50 P. 11:00 P.M. Total 8 Hours Saturday: 6:00 A.M. 7:10 A.M. 8:20 A.M. 9:30 A.M. 10:40 A.M. 11:50 A.M. 1:00 P.M. 2:10 P.M. 3:20 P.M. 4:30 P.M. 5:40 P.M. 6:50 P.M. 8:00 P.M. 9:10 P.M. 10:20 P.M. Total 11:30 P.M. 16 Hours Sunday Drop 11:30 P.M. hour Total 15 Hours Total Hours Available per Week 67 Hours SPRiNGSTED Page 7 Indoor Ice Arena Project PROJECT EXPENSES Operating expense categories for arena operation are fairly straightforward with the largest expense category being for personnel to operate and maintain the facility. Many of the arena expenses are fixed, not variable. Changes in the level of usage while the facility is open will have little effect on the total expenses incurred. Comparisons between facilities, while useful to some degree, have limitations due to variations in sizes, types of operations, staffing complements, etc. A schedule of operating expenses for the proposed facility and three existing facilities is contained in Table 4. The 1997 average for the other three arenas is approximately $149,711. STMA's overall anticipated operating expense of $103,154 is much lower than the average of other arenas studied. We have relied on the expense averages of the three arenas in preparing the annual proforma contained in the section titled "Current Financing Proposal." Table 5 shows five year expense projections using information obtained in Appendix II and the average of the other three arenas studied. The average uses a constant rate of growth. Financing assumptions contained in this report use the average for the three arenas. I SPRINGSTEiD Page 8 i Indoor Ice Arena Project TABLE 4 m = � r N (+! ^ N N �p a Q Ed 40 to O !9 tD N Rf R ' N 7 N N act ut a tO � N '" ^ �< w eNv Cp pp s� p m� Of cif Cf h 0 act -I Ft M ^ ^ � � ' f YNf+ N QS {N N O 1`� .� .� N lQ N Pf co T jp .m 401. N r .� 0ayy Cp 8 p� .t Cc �. N N N ap tD t! Yf V e^O r t6 44 OV P09 O v^! n C d r 40 Q. V. N ~ O to Ul x o ,� ay Q _ G so t Q_ t _ - a t A .� x led- _ SPRINGSTED Page 9 i Indoor ice Arena Project Albertville % s- Mkhae! TABLE 5 Ice Arena Study STMA Projected Operating Costs 1997 1998 1999 2000 2001 Operating Expenses _ Contractural Services Electricity/Gas 7,000 7,175 7,354 7,538 7,727 Water, Sewer & Waste 2.100 2,153 2,206 2,261 2,318 Telephone 1,500 1,538 1.576 1,615 1,656 Equipment Maint. & Repair* 2.750 2,888 3.032 3,189 3,350 Concessions/Pro Shop 15,840 16,236 16,642 17,058 17,484 legal & Accounting 4,000 2,320 2,100 2.153 2,207 Insurance, license 8,000 8,000 8,100 8,300 8,450 Officials/instructors/Prof. 300 600 1.000 1,500 1,500 Other 282 436 638 892 8% Commodities Office Supplies 410 120 135 140 145 Maintenance Supplies 7,700 7,893 8,090 8,292 8,499 General Operating Supplies 1,650 1,691 1,734 1,777 1,821 Other 1,100 1,128 1,156 1,185- 1,214 Total Operating Expenses $103,154 $104,054 $106,819 $110,298 $113,026 Depreciation Capital Outlay Furniture/Equipment 850 871 893 915 938 Machinery/Equipment Ice System Building Roofing Total Capita/ Outlay 850 871 893 915 938 Total Expenses $104,004 $104,925 $107,712 $111,214 $113,964 Average Operating Expenses' $149,711 $153,454 $157,290 $161,222 $165,253 Rate of Growth Total Operating Expenses 0.87% 2.6611/6 3.26% 2.47% Personnel Only 2.680h 2.27% 2.53% 2.50% Contractual Only -1.02% 3.15% 4.36% 2.43% Commodities Only -0.26% 2.61% 2.51% 2.51% Avenge Operating Expenses 7.50% 2.50% 2.50% 2.50% - Average operating expenses for Princeton, Farmington and West St. Paul ice arena's. Does not include Capital outlay. SPRINGSTED Page 10 Indoor Ice Arena Project FINANCING The financing assumptions contained in this report consider a conventional bank loan. The Parties intend to execute a Joint Powers Agreement (Appendix 1) which states that each entity agrees to issue a General Obligation Revenue Note in an amount up to $133,333.33 each, or a total of $400,000. If the Parties decide to bond for the facility, they will need to jointly issue $400,000 since individual $133,333.33 issues are too small to bring into the market. The following discussion provides information concerning bonds. The ability to bond for the construction and improvement of ice arenas lies within various areas of the statutes. The applicable statutes provide for the issuance of the following types of bonds: (1) Gross Revenue Bonds. (2) Lease Purchase Revenue Bonds. (3) General Obligation Bonds --Generally. (4) General Obligation Bonds ---"Mighty Ducks" Authority. Gross Revenue Bonds Minnesota Statutes, Chapter 471.191, permits cities and school districts to borrow and expend funds for the capital costs of providing skating rinks and arenas and other recreational facilities. 47 1. 191 indicates that bonds may be issued pursuant to Chapter 475 to fund these capital costs. Without other express legal authorization or authorization by approval of the electors, the bonds must be issued as gross revenue bonds supported by revenues of the facility to be financed. A gross revenue bond would have a first lien on all of the gross revenues of the arena and operation and maintenance costs would be paid after debt service obligations have been met. Covenants would be entered into with the bondholders which pledge that the arena will continue to be owned and operated during the entire life of the revenue bond issue. Under this covenant, the arena must continue to be operated until the bonds are paid off, even if revenues are inadequate to cover debt service on the bonds and/or the costs of operating and maintaining the facility. The law directs that the "governing body of the issuer shall provide in its budget each year for any anticipated deficiency in the revenues available for such operation and maintenance." It further clarifies that the deficiency funding may be from a property tax levy which exceeds taxes otherwise provided for within charter limitations; however, the authority to levy additional taxes does not apply to cities or towns in which the net tax capacity consists in part of iron ore or lands containing taconite or semi -taconite. Because cities currently do not have general levy limitations, their obligation to a gross revenue bond could be met by an increase in their levy. It is important to note that proposed legislation relating to levy limits could result in cities losing their ability to increase their levy. School districts, however, do not enjoy this flexibility and if obligated under this type of financing, a school district would have to seek special permission to increase its levy to cover any operating deficits or would have to find money for the obligation within its existing operating budget. SPRINGSTED Page 11 ON Y Indoor Ice Arena Project The advantage of the operating pledge to the bondholder is obvious. The issuer must continue to operate the facility, directing revenues first to the bonds, second to the operating and maintenance of the facility and levying, if necessary, to make up any operating and maintenance shortfalls. To achieve marketability, an investor must be comfortable that the revenues from the facility will provide ample coverage for debt service and operation of the facility. The investor will also look to the issuer's ability to provide outside funds for the operation of the facility, where the revenues will come from, and their availability in the event of difficult budgetary times. The pledge by the issuer towards operation of the facility is not an annual appropriation pledge. The law provides specifically that the issuer "shall provide in its budget each year" for anticipated deficits. Borrowing under this section should be viewed as a long-term commitment to both operate the facility throughout the term of the bond issue and to potentially provide for full operating costs if revenues after debt service are insufficient to cover operating obligations. There is no obligation beyond revenues of the facility to provide for debt service payments themselves. Lease Purchase Revenue Bonds An Economic Development Authority ("EDA") or, under certain circumstances, a Housing and Redevelopment Authority (" HRA") could issue lease purchase revenue bonds to pay for the facility, supporting the bonds through the receipt of lease payments from obligors under the lease. For this project it is possible that the lease would be with the Cities of Albertville and/or St. Michael. Bond opinions have differed on whether an HRA can fund projects, that are not redevelopment projects, which involve removal of existing structures. An alternate structure, Certificates of Participation ("COPs") could be employed to deal with this issue. The following description applies in the case of COPS also. The lease payments could be met with net revenues of the facility and any other moneys the lessors are obligated to pay under the lease(s). In order for a participant to enter into such a lease, it would usually need to be an annual appropriation lease, subject to budgeting by the governing body each year. Exceptions to this rely on either the passage of an authorizing election by each lessor or compliance by each lessor with the terms of the Minnesota Statutes, Chapter 475.58 ("Mighty Ducks Legislation," to be discussed later). If the obligation is an annual appropriation, payment is subject to inclusion of any deficits in the lessor's budget(s) each year. The risk is great for an investor since provision of ice arenas is not generally considered to be an essential service such as provision of water and sewer service. Future governing bodies have the ability to decline to appropriate under an annual appropriation lease; and conceivably, budgetary constraints could lead to non -appropriation for this type of facility if difficult financial decisions needed to be made. If, on the other hand, the underlying leases were general obligations of the lessor(s), there would be no question of the governing body's legal obligation to make payment. A lease purchase bond that is not secured by general obligation leases will be difficult to market because of: i) the non -essential nature of the project, ii) recent non -appropriations for similar bond structures sold for other purposes and iii) the investors' expectations of net revenues available to pay debt service. Assuming a full general taxing obligation pledge behind the lease securing the bonds, the rating of this issue would be slightly below the rating of the guarantor. FA SPRINGSTED Page 12 Indoor Ice Arena Project General Obligation Bonds --General Discussion General obligation bonds are primarily authorized under Minnesota Statutes Chapter 475. P Y p They provide the best security for bondholders (translating into the lowest borrowing cost) but, unless otherwise specifically authorized, require the passage of a bond referendum. Because of the pledge of property taxes if needed for debt service, general obligation bonds are the most attractive to the market of any type of credit. Due to the nature of the project (i.e., an ice arena), it is assumed that a voted authorization will not be sought for this project and that other financing authorization will be employed. General Obligation Bonds —Mighty Ducks Authority Minnesota Statutes, Chapter 475.58, provides authorization for the financing of ice facilities. The authorization remains in effect until December 31, 1997. In summary, it provides that indoor ice arenas to be used primarily for youth athletic activities can be financed by municipal obligations without the requirement of an election if all the following conditions are met: (1) the facility revenues are pledged to the financing; (2) the facility and its financing are approved by at least two of the following governing bodies: a) the city, b) the school district, or c) the county where the facility is located; (3) the governing body of the municipality finds, based on an analysis by a professional experienced in finance, that the revenues and other available money will repay the obligations, without reliance on a property tax levy or general purpose State aid; and (4) no petition for election is timely filed. At least 30 days before issuing its obligations, the municipality has to hold a public hearing for which due notice was given. The obligations can be issued unless a petition signed by 10 percent, or more, of the number of voters voting in the last general election is received within 20 days. "Municipality" for purposes of this section includes cities, townships, counties and school districts. This legislation is commonly referred to as the "Mighty Ducks" bonding legislation. Absent this legislation, the issuance of general obligation bonds for this purpose would require an election. The specific authorization contained in this portion of the statute provides the most straightforward, cost-effective means of issuing debt for this project. It does not provide for funding for operating costs, but does offer the investor strong assurance that the debt will be repaid. Bond Issuance —Generally On strictly a cost basis, general obligation bonds under 475.58 offer the lowest cost alternative The higher the rating of the guarantor, the lower the borrowing costs. Fairly similar results can be achieved with a lease purchase revenue bond if it is fully backed by a general obligation lease. i60 SPRINGSTED Page 13 Indoor /ce Arena Project As mentioned earlier, the general obligation pledge provided for in 475.58 may be useful when incorporated into other financing types such as lease purchase revenue bonds and may be essential in the formulation of a sound financing mechanism for this project. If a rated transaction is desired, it is important that 100 percent of the debt service be covered by a general obligation pledge. Although a school district can obligate itself as issuer and/or general obligation guarantor under the Mighty Ducks legislation, they must seek approval from the Department of Education through the Review and Comment process before constructing facilities that require bonding in excess of $400,000 and are to be used for educational purposes. SPRINGSTED - Page 14 Indoor lce Arena Project CURRENT FINANCING PROPOSAL Preliminary budgets for the ice arena facility indicate that the cost of the project would be as follows: St Michael • Albertville Ice Arena Ice Arena Study Estimated Sources and Uses Sources City of St. Michael Loan $133,333 City of Albertville Loan 133,333 ISO 885 Loan 133,333 MASC Grant 200,000,, Fundraising 350,000-^ n 168,000, Other Total Sources $1,118,000 . Uses Construction Cost $880,000 Inflation (0.5%/mo.) 0 Total Construction 880,000 Professional Fees 40,000 Furniture, Fixtures, Equip. 46,000 Subtotal 966,000 Contingency 50,000 Site Prep / Land 102,000 Total Project Costs 1,118,000 Debt Service Reserve Fund 0 Rounding Factor 0 Total Uses $1,118,000 Assumptions:* Loan Date 7/1/97 First Payment Date 8/1/97 Term 20 year amortization Capitalized Interest None • We have made no assumptions as to the funding source for making the first loan payment. There is no capitalized interest nor costs of issuance based on the assumption that the financing is a loan. SPRINGSTED Page 15 Indoor Ice Arena Project The proposal is for the financing of Phase I improvements totaling $1,118,000. The Parties' portion of construction costs is reflected by that amount funded by a $400,000 loan. There is a funding gap of $168,000 that is shown as "Other" under funding sources. The total cost, and any resulting shortfall, will increase if Phase II ($240,000) and/or Phase 111 ($175,000) construction casts are included in the project. We have not identified any funding sources that would cover this construction cost shortfall. it is our understanding that the STMA-YHA will cover any remaining shortfall before the Parties issue $400,000 in financing. We would recommend that the Parties require STMA-YHA to provide a cash escrow or some other type of instrument acceptable to the Parties before obtaining financing. The assumption is that each member of the Party will obtain a loan in the amount of $133,333.33. As summarized in Table 6, the loan is amortized over a 20-year period with the final principal scheduled for 2017. • SPRINGSTED Page 16 Indoor Ice Arena Project TABLE 6 Albertville i S� :Michael, Minnesota --'----- Ice Arena Study Monthly Loan Amortization Schedule Annual Payments Loan Amount $133,333.33 Monthly Payment $1,115.25 Annual Interest Rate 8.00% # Monthly Pmts 240 Year Date Principal pa Interest Payment Balance 133, 333.33 1 1997 1,147.02 4,429.25 5,576.27 132,186.31 2 1998 2,913.43 10,469.61 13,383.04 129,272.88 3 1999 3,155.24 10, 227.80 13, 383.04 126,117.64 4 2000 3,417.13 9,965.91 13,383.04 122,700.51 5 2001 3,700.74 9,682.30 13,383.04 118,999.77 6 2002 4,007.88 9,375.16 13, 383.04 114, 991.89 7 2003 4,340.55 9,042.49 13, 383.04 110, 651.34 8 2004 4,700.81 8,682.23 13,383.04 105,950.53 9 2005 5, 090.98 8,292.06 13, 383.04 100, 859.55 10 2006 5,513.53 7,869.51 13,383.04 95,346.02 11 2007 5,971.16 7,411.88 13,383.04 89,374.86 12 2008 6,466.76 6,916.28 13,383.04 82,908.09 13 2009 7,003.49 6,379.55 13,383.04 75,904.60 14 2010 7,584.78 5,798.26 13,383.04 68,319.82 15 2011 8,214.30 5,168.74 13,383.04 60,105.52 16 2012 8,896.10 4,486.94 13, 383.04 51,209.42 17 2013 9,634.46 3,748.58 13, 383.04 41, 574.96 18 2014 10,434.12 2,948.92 13,383.04 31,140.84 19 2015 11, 300.16 2,082.88 13,383.04 19, 840.68 20 2016 12,238.05 1,144.99 13,383.04 7,602.63 21 2017 7,602.62 204.08 7,806.70 Total 133,333.33 134,327.42 267,660.75 �' ► SPRINGSTED Page 17 Indoor Ice Arena Project Funding of Reserves Reserves should be funded for capital, operations, and repair and replacement. These types of facilities receive hard use over long periods of time, which result in equipment and building maintenance problems. Breakdowns in the ice -making and ice -resurfacing equipment lead to both the loss of revenue and repair bills often in the tens of thousand dollars. The establishment of an appropriately sized maintenance reserve is recommended. Table 7, which is discussed in more detail below, includes within the analysis a line item for capital outlay. A maintenance reserve should be considered if care is taken to maintain the account at a level appropriate to provide adequate protection for the Parties for coverage of operating expenses in the event of shortfalls and to provide a contingency for extraordinary maintenance needs. Other Considerations The financial information presented here is based on discussions with the Parties and estimates/assumptions using generally available data applicable to market conditions in May 1997. The intent of this report is to provide information that will form a part of the framework from which further decisions can be made. This report is not a rigorous feasibility study as may be used for disclosure purposes associated with the issuance of municipal bonds. Some assumptions inevitably will not materialize and unanticipated events and circumstances may develop causing actual results of project development to vary. Usage of the proposed facility will be one of the largest single factors that affect the financial outcome reviewed here. Due to the wave of proposed ice arenas, the fairly flat pricing -of"prime time rental and the natural inclination to prefer facilities nearest one's own community, we would speculate that the STMA facility will need to rely almost exclusively on its local usage and nearby communities without indoor ice facilities for revenue generation. The best measure of the ability to achieve results assumed herein is the willingness of the local hockey community to continue to support growth in the program. Their youth hockey programs are the primary users of ice time in the majority of Minnesota arenas. SUMMARY This report contains an annual proforma (Table 7) that includes net operating income and cash flow for this project. The average annual debt service (i.e., loan) amount for funding this project is estimated at $40,149 or $13,383 per party after the first year, assuming a 20-year loan with an interest rate of 8 percent. In the first few years (1998 through 2001), the average annual cash flow funding gap is $21,406, or $7,135 per party. In. addition to covering annual debt service and operating expenses, it is prudent to accumulate reserves for the payment of debt service and/or operations in the event of a business downturn. Also, reserves for capital replacement should be provided. These illustrations rely on many assumptions that include the construction cost of the facility, market rates/loan terms, etc., all of which are subject to change. The options for strengthening SPRINGSTED Page 18 Indoor Ice Arena Project the cash flow include reducing funded project costs, increasing the hourly charge, increasing the hours rented, increasing operating contributions from other organizations such as local youth hockey associations, relying on alternative funding for reserves, or further refining the operating budget. Extending the loan term will decrease the annual debt service obligation but is not recommended since this will increase the total interest paid for the financing. SPRINGSTED Page 19 iIndoor Ice Arena Project I Albertvtlle , St. Michael. Minnesota TABLE 7 S Ice Arena Study frl Annual PrOfarma :nnstant rate of growth avenge soeranng ex0enses. 1497 1988 /999 2000 2001 r r as' 8a once SO S886 (S21 2091 142 852) $64 033) nep.a•.:mn Qe,+mn_es Ice Rer a;,P'ograms;Omer 5168.1's S172.379 S176.689 S181.106 S186.634 Omer 0 0 0 0 0 - Total Operating Revenue S166.175 S172.379 S176.689 S181.106 S185.634 Operating Expenses Personnel S72.204 S74.009 $75.860 S77.756 $79.700 Contractural Services 67.833 69.529 9.916 71.267 10.163 73.049 74.875 10.417 10.678 Commodities 9.674 Total Operating Expenses S1494711 $153.454 S157.290 S161.222 $165.253 toperating Income (Loss) S18.464 S18.926 $19.399 S19.884 $20.381 Non-Operatirnt Revenues Prolect Funds $400.000 so $0 0 so so 0 0 MASC Grant 200.000 0 0 0 0 0 Fundraistng 350.000 0 0 0 Other 168.000 Total Non -Operating Revenues S1.118.000 $0 $0 so SO Net Operating Income $1,136.464 S18.926 S19.399 S19.884 $20,381 CIP Funding of eLgiects Capital Outlay' S850 S87f 5893 $915 5938 0 Phase I Project Cost' 1.118.000 0 0 0 Loans 13.383 13.383 13.383 13.383 Albertville5,576 Albertville 5.576 13.383 13.383 13,383 13.383 Mich Michael 5.576 13.383 13.383 13,383 13,383 ISO 0 0 0 0 0 Other Total CIP Projects $1.135,578 S41,020 S41,042 S41,064 S41,087 Amnat �xr ;0--a- $8W (S21.209) ($42.852) ($64.033) (S84,739) Ending Cash Balance ,4�SSW710[IORS 1997 Seginning balance is assumed to be SO. Farmington and West St. Paul ice arena's. 1997 revenue projections are based on average revenues for Princeton, 2.5% rate of growth ther sfW- STMA revenue pro se ions higher than average for similar ice arena's. Assumes ice rental rates begin Q $12Wmr and increase S51hour every 1.2 years. for 1997.98 for Princeton. Farmington 1997 operating expenses are based on average operating expenses budgeted West St. Paul ice arena's. 2.5% rate of growth thereaRer. and STMA estimated operating expenses are lower than average for similar arena's. Loan Assumpb= Loan Gated 7/1197 Loan amount:-$133.333.33 lnterest Rate: 8% Repayment: Monthly Term: 20 years For a 7% 10 year loam the annual cost for each loan would be $18.577. ' Source: STMA youth Hockey Assodation Study. Paige 20 SPRINGSTED Indoor Ice Arena Project Estimating Annual Exposure There are a number of scenarios which present the potential for financial risk to the Parties: They are on a spectrum of events that range from a lower -than -anticipated financial performance for the arena to a closure of the facility for some unforeseen reason. Table 8 t attempts to illustrate the financial exposure at these two ends of the spectrum. Prcject Under -Performance Project under -performance can be caused by either operating costs exceeding budget expectations or revenues falling short of anticipated levels. The first section of Table 8 illustrates assumptions reflective of poor project performance. The first assumption incorporated is that expenses are underestimated by 10 percent. it is assumed that if serious deficiencies appear in the budget, the Parties would address them in subsequent years' budgets. Furthermore, it is suggested that local youth hockey associations or any other user contribution cannot be seen as a long-term source of funding for unexpectedly high budget levels. A 10 percent variance in budgeted expenditures equates to $15,345. Revenue under -performance could result from either too high an assumed rental rate or inability to book the required rental hours. Table 8 makes assumptions regarding projected operating revenues in 1998. like project under -performance, the assumption is that a 10 percent ($17,238) under performance in revenues occurs. As a result of the revenue and expense assumptions described, a total annual exposure of $32,583 would occur. Project failure In the unlikely event that the project is shut down entirely, we have assumed that a basic level of maintenance would be required, including securing and insuring the facility. In addition, the debt service (i.e., loan) would continue to be paid. These assumptions result in a total annual exposure of $66,149. SPRINGSTED Page 21 Indoor /ce Arena Project TABLE 8 Project. Under -Performance Allowance Dollar for Error Exposure 1998 Operating Expenses $153,454 10.00% $15,345 1998 Operating Revenues $172,379 10.00% $17,238 Total Dollar Exposure $32,583 Project Failure Facility is closed ty Estimated Debt Cost Option Basic Maintenance Costs: Utilities $15,000 Security Service 1,000 Insurance, License 5,000 Administration Overhead 5.000 Total Basic Maintenance Costs $26,000 Net Debt Service Costs 40.149 Total Annual Dollar Exposure �66.149 SPRINGSTED Page 22 fi Indoor Ice Arena Projecf CONCLUSION The current financing proposal does cover debt service and operating costs in aggregate. This report shows an annual operating shortfall of approximately $21,400 in the first few years. This annual shortfall is in contrast to the surplus shown in Appendix Il. The reasons for this funding gap are a result of a combination of factors. The Parties may want to consider a structure employing alternative assumptions which could close the funding gap. There are a finite number of alternatives that can be employed to address the budget deficits projected including; • Reducing the loan size. Reductions of actual costs (as opposed to funded reserves) will decrease the annual debt service required for the project. Donations of time and/or materials from local contractors are one possibility of lower construction costs. • Increasing the ice rental rate. This may be an unlikely solution given STM of $120 per hour when compared to area ice arenas. g A s projected rate • Sell more ice time. The major factor in revenue generation g is the effective scheduling and aggressive marketing of ice rental time. Expansion of existing local programs may offer the greatest potential for selling more ice time. - Re duce operating expenses. Reducing operating expenses is probably not a viable alternative as STMA's proposed budget is less than other facilities studied. • Eliminate replacement p ent reserve funding. It is not recommended that the facility be operated without some provision for funding of repair and replacement reserve. Breakdown of ice - making and ice -resurfacing equipment lead to both losses of revenues and repair bills often in the tens of thousand dollars. - Operating contributions from other organizations. Contributions from organizations like local youth hockey associations can help reduce annual debt service or operating expenses. • Extending the term of the loan issue from 20 to 25 years. Extending the debt service amortization by five years would decrease the annual debt service obligation but would also increase the total interest paid for the financing. The above alternatives help explain and offer potential solutions for reduc i annual deficit. ng the anticipated II SPRINGSTED Page 23 JOINT PORffit8 1. Parties. The parties to this Joint Powers Agreement (the "Agreement") are: (a) The City of St. Michael, a Minnesota municipal corporation ('"St. Michael"); (b) The City of Albertville, a Minnesota municipal corporation ("Albertville"); and (c) Independent School District Number 885, a body corporate and politic organized pursuant to Minnesota Statutes Chapter 122 (the "School District"). St. Michael, Albertville and the School District may be referred to herein individually as a "Party" or collectively as the "Parties" 2. Recitals. (a) Minnesota Statutes, Section 471.59, (the Joint Powers Act) authorizes two or more governmental units to Jointly or cooperatively exercise any power common to the Parties to the Agreement and to establish a joint powers board to exercise powers which a joint powers agreement confers upon it. One or more of the Parties to the agreement may exercise the powers on behalf of the other participating governmental units. (b) Minnesota Statutes, Section 471.15 authorizes statutory cities and school districts to operate a program of public recreation and playgrounds and to acquire, equip and maintain land, buildings or other recreational facilities; to '4109? expend funds for the operation of such a program; and to issue bonds pursuant to Minnesota Statutes, Chapter 475 for the purpose of carrying out such powers. (c) Minnesota Statutes, Section 471.16 authorizes statutory cities and school districts to cooperate among themselves and with any nonprofit organization in any manner which they may mutually agree to conduct programs of public recreation. (d) Minnesota Statutes, Section 471.19 authorizes statutory cities and school districts operating a program of public recreation and playgrounds pursuant to Minnesota Statutes, Section 471.15 to 471.19 to acquire or lease, equip and maintain land, buildings, and other recreational facilities, including skating rinks and arenas, together with related automobile parking facilities; to expend funds for the operation of such programs; and to borrow and expend funds for capital costs of such programs. (a) Minnesota Statutes, Section 475.58, Subdivision 3 authorizes a municipality (which term includes a school district pursuant to Minnesota Statutes, Section 475.51, Subdivision 2) to finance the acquisition, improvement or construction of an indoor ice arena intended to be used predominantly for youth athletic activities (a "Qualified Ice Arena") without regard to the election requirements set forth in Minnesota Statutes, Section 475.58, Subdivision 1 or any other provision of law or home rule charter provided the following conditions are met: (i) The obligations are secured by a pledge of a revenues from the facility; (ii) The facility and its financing are approved by resolution of the City in which the facility is located; (iii) The governing body of the municipality finds, based on an analysis provided by a professional experienced in finance, that the facility's revenues and other available money will be sufficient to pay the obligations, without reliance on a property tax levy or the municipality's general purpose state aid; and (iv) No petition for an election has been timely filed under paragraph (b); (f) St. Michael, Albertville and the School District are entering into this Joint Powers Agreement to construct, operate and maintain a Qualified Ice Arena (the "Joint Ice Arena") on real property legally described on the attached. Exhibit A (the "Ice Arena Property"). The Ice Arena Property, the Joint Ice Arena and any other improvements constructed on the Ice Arena Property shall be referred to herein as the "Property" (g) To assist in financing the Arena, each party to this Agreement will execute a General Obligation Revenue Note in the amount of One Hundred Thirty Three Thousand Three Hundred Thirty Three and 33/100 ($133,333.33) Dollars ("Loan") for a total of Four Hundred Thousand and no/100 ($400,000.00) { 3 t Dollars (the "Notes"), with Highland Bank of St. Michael or some other lender (herein the "Lender"), providing the i financing. (h) The Joint Ice Arena is to be used predominately for (i) Prior to the commencement of construction of the Joint Ice Arena, the Ice Arena Property shall be conveyed by the present owner and donor of the Ice Arena Property conveying an undivided one-third interest to each of the three Parties to this Agreement as tenants in common. Each of St. Michael, Albertville and the School District shall own an undivided one-third interest subject to the terms of this Joint Powers Agreement and the Minnesota Amateur Sports Commission Grant Agreement. The recitals shall be deemed a part of this Agreement. 3. Joint Powers Board. St. Michael, Albertville and the School District hereby establish a Joint Powers Board (herein the "Board") to exercise all powers which are common to St. Michael, Albertville and the School District and which are necessary and appropriate for the construction, operation, use, maintenance and repair of the Joint Ice Arena including specifically, but not limited to, the power to contract with the STMA Youth Hockey Association, Inc., a Minnesota nonprofit corporation (the "Hockey Association") for pledges of funds to assist in financing the construction of the Joint Ice Arena and/or meeting the operation and maintenance expenses of the Joint Ice Arena in exchange, for the 4 right to priority along with the Independent School District in the allocation of ice time. In addition, St. Michael, Albertville and the School District may contract with the STMA Youth Hockey Association, 'Inc. or another entity (the "Operating Entity"), to operate the Joint Ice Arena under the direction of the Board. Said contract shall be cancelable at the discretion of the Board. In the event of such contract the employees of the Joint Ice Arena will be employees of the Operating Entity. The Board shall consist of two members appointed by the City of St. Michael, two members appointed by the City of Albertville and two membersappointed by the School District Board. The Board may exercise its powers by resolutions adopted by the affirmative vote of a majority of the Board members at a public meeting duly called. Meetings of the Board shall take place at such times and locations as the Board determines and the Board's function shall be in accordance with such bylaws as it adopts from time to time. Board meetings shall be open to the public except when the issue or issues under consideration would authorize a city, county or a school district board to close a city council or school district board meeting to the public. Notice of the Board's meetings shall be given in the same manner as notice of the city council and school district board meetings. 4. St. Michael's Rights and Obligations. St. Michael's rights and obligations shall be as follows: (a) to execute the General Obligation Revenue Note in favor of the Lender in the amount of One Hundred Thirty Three �# 4 5 Thousand Three Hundred Thirty Three and 33/100 ($133,333.33) Dollars. (b) Pursuant to Section 8, St. Michael shall annually allocate funds to the Board in an amount sufficient to pay one-third of any projected shortfall in annual revenues available for the operation and maintenance of the Joint Ice Arena and shall provide in St. Michael's budget each year for one-third of any such projected shortfall in annual revenues. Annual revenues available for the operation and maintenance of the JointIceArena shall be determined after the application of any annual revenues which constitute Pledged Revenues to scheduled Loan payments. If necessary, St. Michael shall levy a tax on the taxable property within its boundaries, subject to any levy limit laws, to fund St. Michael's obligatio -�ereunder. (c) St. Michael shall have the right to appoint two members to the Board. (d) St. Michael shall be paid an amount equal to its debt service on its Note in the amount of One Hundred Thirty Three Thousand Three Hundred Thirty Three and 33/100 ($133,333.33) Dollars along with the other parties to this Agreement,—Zd -the extent funds are available from the operation of th=V411,ple y Arena. 5.at os. Albertville's rights and obligations shall be as follows: (a) to execute the General Obligation Revenue Note in Q#� 6 favor of the Lender in the amount of One Hundred Thirty Three Thousand Three Hundred Thirty Three and 33/100 ,($133,333.33) i Dollars. (b) Pursuant to Section 8, Albertville shall annually allocate funds to the Board in an amount sufficient to pay one-third of any projected shortfall in annual revenues available for the operation and maintenance of the Joint Ice Arena and shall provide in Albertville's budget each year for one-third of any such projected shortfall in annual revenues. Annual revenues available for the operation and maintenance of the Joint Ice Arena shall be determined after the application of any annual revenues which constitute Pledged Revenues to scheduled Loan payments. If necessary, Albertville shall levy a tax on the taxable property within its boundaries, subject to any levylimit laws, to fund Albertville's obligation hereunder. (c) Albertville shall have the right to appoint two members to the Board. (d) Albertville shall be paid an amount equal to its debt service on its Note in the amount of one Hundred Thirty Three Thousand Three Hundred Thirty Three` and 33/100 ($133,333.33) Dollars along with the other parties to this AgreeLo the extentfunds are available from the operation of th.Arena. 6. District's Itights and Obligations. *The School District's rights and obligations shall be as follows: �i 7 7 E T (a) to execute the General Obligation Revenue Note in favor of the Lender in the amount of One Hundred Thirty Three Thousand Three Hundred Thirty Three and 33/100 ($133,333.33) Dollars. (b) Pursuant to Section 8, the School District shall annually allocate funds to the Board in an amount sufficient to pay one-third of any projected shortfall in annual revenues available for the operation and maintenance of the Joint Ice Arena and shall provide in the School District's budget each year for one-third of any such projected shortfall in annual revenues. Annual revenues available for the operation and maintenance of the Joint Ice Arena shall be determined after the application of any annual revenues which constitute Pledged Revenues to scheduled Loan payments. If necessary, the School District shall levy a tax on the taxable property within its boundaries, subject to any levy limit laws, to fund the School District's obligation hereunder. (c) The School District shall have the right to appoint two members to the Board. (d) the School District shall be paid an amount equal to its debt service on its Note in the amount of One Hundred Thirty Three Thousand Three Hundred Thirty Three and 33/100 ($133,333.33) Dollars along with the other parties to this Agreement to the extent funds are available from the operation of the hockey Arena. (e) The School District shall have a priority in regard i to scheduled ice time and in that regard, the SchoolDistrict shall enter into a contract with the Board to purchase a minimum of hours of ice time for use by the school District during each season of operation. 7. Allocation of Revenues. The revenues from the Joint Ice Arena shall be first used to fund scheduled repayment of the Notes and secondly to fund the operation and maintenance of the Ice Arena. If revenues from the Joint Ice Arena exceed amounts necessary to fund scheduled repayment of the Loan and the operation and maintenance of the Ice Arena, the Board may elect either to invest the excess revenues in one or more reserve funds established to fund future scheduled repayment of the Notes, future operation and maintenance expenses, repair and replacement expense or improvements to the Joint Ice Arena. 8. Estimation a".Deficienci.es and Timing of Payment. (a) The Board will convene annually at a time it determines to prepare estimates of revenues and expenditures. Based upon these estimates, the Board will determine what amount, if any, will be necessary to cover any shortfall in revenues to pay for operations, maintenance or Loan payments. (b) The Board will forward this information to the Parties, and each Party will include in its budget the share of any shortfall which the Party is obligated to pay. (c) The Parties will provide the shortfall payments at such time as needed as determined by the Board. (d) Any revenue that exists after meeting debt service and operation expenditures will be deposited into'a reserve account pursuant to Section 7 above. 9. Fiscal Year. The Board's fiscal year shall run from July 1 to June 30 of each year. 10. Waiver of Bartition. The Parties each hereby irrevocably waive any and all right to maintain an action for partition as to .each Party's undivided interest in the Property. 11. Sale and Encumbrance. A Party may not voluntarily sell, transfer, lease, mortgage, encumber or otherwise dispose of any interest in the Property without the prior written consent of each other Party. The Parties may mutually agree to sell or encumber the entire Property or any portion thereof at any time provided the terms and conditions of such sale or encumbrance are set forth in a written agreement which all Parties execute. If the Parties agree to sell the Property or use the Property as security for a loan or other advance money, the proceeds of the sale of the Property or the proceeds of the loan shall be used and applied in a manner set forth in the agreement among and between the three Parties. 12. Involuntary Transfers. If all or any portion of the fractional interest in the Property of any Party.is transferred to a third party or comes under the ownership or control of another party (a "Transferee") by reason of appointment of a receiver for the benefit of creditors, adjudication of bankruptcy, attachment or levy by any creditor, foreclosure, operation of law or any other involuntary means, the remaining Parties shall have the exclusive �, 9 10 right to purchase such fractional interest in the Property from the Transferee as follows: i (a) Upon the mutual agreement of the remaining Parties and the Transferee, but if they do not reach a mutual agreement within 30 days following the exercise of the remaining Parties' rights hereunder; then (b) The purchase price to be paid by the remaining Parties shall be equal to the lesser ofs (i) the fair market value of the Property as established by an appraisal conducted by a qualified real estate appraiser mutually selected by the remaining Parties and the Transferee. If the remaining Parties and the Transferee cannot agree on an appraiser, then the remaining Parties and the Transferee shall each appoint one appraiser who shall have at least five years experience as a licensed real estate appraiser. If the two appraisers cannot agree upon the fair market value, they shall jointly choose a third appraiser and the decision of any two of the three appraisers as to the fair market value shall be binding upon the Parties. If no two appraisers can agree upon a fair market value, the fair market value shall be deemed to be the average of the fair market value as determined by the three appraisers. The expenses of each appraisal conducted in accordance with this provision in this paragraph shall be borne equally by the Parties and the Transferee; or Si.� 11 (ii) the amount of any lien which gave rise to such involuntary transfer. The remaining Parties' right to purchase hereunder may be exercised within six months following the involuntary transfer, by written notice to the Transferee. Under no circumstances shall any Transferee be entitled to possession of the Property or any portion thereof or to assert any claim for rent or other income from possession or use of the Property. 13. Ternination. This Joint Powers Agreement shall terminate upon the sale of the.Property pursuant to Section 10. The proceeds of a sale of the Property shall be used first to repay or provide for the subsequent repayment of the Loan and second to pay any other debts or obligations of the Board. Any funds remaining after the repayment or provision for the repayment of the Notes and payment of any and all other debts and obligations the Board shall be divided equally among the three Parties. If the proceeds of the sale of the Property are not sufficient to repay the Loan and repay any and all obligations of the Board, the Parties shall each contribute one-third of the amount necessary to repay or provide for the repayment of the Loan and pay all debts and obligations of the Board. This Joint Powers Agreement shall terminate at such time as the Property has been sold, the proceeds of the sale have been used to repay or provide for the repayment of the Loan and pay all debt and obligations of the Board and any remaining cash has been distributed equally among the three Parties to this Agreement, g 12 or the three Parties to this Agreement have each contributed one- third of the amount necessary to repay or provide for the repayment a of the Loan or to pay any debts or obligations of the Board which were not funded from the sale proceeds. 14. Default. If any party defaults in the performance of its obligations under this Agreement, the non -defaulting Parties, either jointly or individually, may commence an action in Wright County District Court to compel the defaulting Party's specific performance of its obligations under this Agreement or to recover damages. In any such action the nondefaulting Parties shall be entitled to recover its actual attorneys' fees and costs. 15. Effective Date. This Agreement shall be effective as of the day of , 199 16. Regmired Resolutions. The Parties' obligations under this Agreement are contingent upon: (a) Each of St. Michael and Albertville City Councils and the School District Board adopting resolutions approving the Joint Ice Arena and its financing and the adoption of this Joint Powers Agreement on or before , 1997. (b) The St. Michael and Albertville City Councils and the School District Board adopting resolutions, on or before 1997, finding, based on the analysis provided by Springsted Incorporated, a professional experienced in finance, that the facility's gross revenues and other available money will be sufficient to repay the Loan, without reliance on the Parties' property tax levy or general purpose state aid within the meaning of Minnesota Statutes, Section 475.58, Subdivision 3, paragraph (a)(3). (c) No petition for an election being timely filed under Minnesota Statute, Section 475.58, Subdivision 3, paragraph (b) CITY OF ST. MICHAEL By• Its Mayor By• City Clerk CITY OF ALBERTVILLE By• Its Mayor By• Its City Mana9er INDEPENDENT SCHOOL DISTRICT NUMBER 885 By• Chair By• Clerk 14 CI(4 MEMORANDUM TO: GARY HALE, CITY ADNMSTRATOR, ALBERTVILLE CITY COUNCIL MEMBERS FROM: MIKE COURI, CITY ATTORNEY SUBJECT: SENIOR HOUSING -BONDING REQUEST DATE: JULY 2, 1997 Steve Feneis has requested mat the City of Albertville issue housing revenue bonds to finance the construction of the rental portion of the project. By issuing these bonds in the City's name, the Developer will be able to sell the bonds as tax exempt bonds at a lower interest rate than would otherwise be available. These bonds are not general obligation bonds of the City. In fact, the City would issue these bonds in name only, and would not be liable for any portion of their payment from general funds. Rather, the City would make payment of bonds based upon a "pass through" agreement with the Developer, wherein the bonding documents will specifically detail that payment of the bonds will come only from the revenues generated by the rental portion of the senior housing project. The bond holder would have a mortgage on the rental portion of the senior housing as security for payment of the bonds. Should the bonds be defaulted due to insufficient revenue from the senior housing project; this default would not affect the City's future bond rating or its ability to issue bonds in the future since the City is not obligated to make any payments under the bonds except from the revenues derived from the senior housing project:. Because the bonds are not general obligations of the City, I do not believe that the issuance of these bonds carry any significant "downside" for the City. Accordingly, I recommend that the City pass the accompanying resolution as a means of facilitating the construction of the Senior Housing project. The attached letter from Bruce Batterson of Kennedy and Graven provides additional details relating to the bond issuance. The resolution does not commit the City to issue the bonds at this point; but rather gives preliminary approval for the issuance, subject to the City and the developer entering into a loan agreement acceptable to the City. The loan agreement is the "pass through" document which requires the developer to forward the necessary revenues from the senior housing project to the City to meet the bond payments. 1 ' �e 470 Pillsbury Center 200 South Such Street enndy Minneapolis MN 55402 (612) 337-9300 telephoneftV (612) 337-9310 fax e-mail: atrysfkennedy-graven.com CHARTERED BRUCE M. BATTERSON Attorney at Law Direct Dial (612) 337-W59 July 1, 1997 Mr. Michael C. Couri Radziwill & Couri 705 Central Avenue East P.O. Box 369 St. Michael, MN 55376 RE: City of Albertville Housing Revenue Bonds Dear Mr. Court: This letter is to briefly describe the issuance of housing revenue bonds under Minnesota Statutes, Chapter 462C, as proposed for Zedakah Foundation in the Cottages of Albertville development. In a revenue bond conduit financing, the City issues tax-exempt bonds and lends the proceeds' �of tfie bonds to a private borrower. The bonds are payable solely from loan repayments made by the borrower. No tax revenues or other city money may be used to pay the bonds, and the city has no liability on the bonds. The city is a party only to allow the interest on the financing to be tax-exempt. In a typical housing bond issue, the city would adopt a preliminary "inducement" resolution, calling a public hearing. Notice of the hearing must be published at least 15 days in advance. A housing financing program is reviewed and approved following the public hearing. The Chapter 462C hearing is usually structured to satisfy the requirements of Section 147(f) of the Internal Revenue Code, as well. When the transaction has been negotiated and documented between the borrower, the bond purchaser and the other parties, the city is asked to approve a final bond resolution, authorizing the issuance of the bonds and setting the terms of the financing. Our office will prepare all the proceedings and agreements, including the hearing notice and the financing program, for the issuance of the Zedakah bonds. I have enclosed a form of preliminary resolution for consideration by the City Council. Please call me or Steve Bubul if you have any questions. Very truly yours, 4o4.4- ' Bruce M. Batterson BM8125647 AL141-25 CITY OF ALBERTVILLE, MINNESOTA d(2)w- RESOLUTION NO. I. 997_-3r RESOLUTION GIVING PRELIMINARY APPROVAL TO A SENIOR HOUSING PROJECT ON BEHALF OF ZEDAKAH FOUNDATION AND CALLING PUBLIC HEARING WHEREAS, Zed" Foundation, a Minnesota nonprofitcorporation (the "Borrower") has submated an appIx a non to the City requesting revenue bond financing for a project (the "project") gmeraily described as the acquisition, construction and equipping of a 44-unit rerside atial rental facility for senior citizens on Lot 38, Bloack 1, Cottages of Albertville, in the City, to be owned and operated by the Borrower, and WHEREAS, EAS, pursuant to Minnesota Statutes, Chapter 402C, as amended (the "Act"), the City is authorized to issue its revenue bonds to finance all or part of the cost of the Project, following the adoption of a housing finance program after a public hearing; NOW, THEREFORE, BE IT RESOLVED THAT: 1. The Project and the issuance of revenue bonds therefor in an amount up to approximately $4,000,000 are hereby given preliminary approval by the City, subject to the mutual agreement of the City, the Borrower and the initial purchaser of the bonds as to the details of the bonds and provisions for their payment. In all events, it is understood, however. that the bonds shall not -constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the City's interest in the loan agreement with the Borrower and the project, and the bands, when, as, and if issued, shall recite in substance that the bonds, including interest thereon, are payable solely from the revenues received from the project and property pledged to the payment thereof, and shall not constitute a debt of the City. 2. As required by the Act and by Section 147(f) of the Internal Revenue Codc of 1986, as amended, this Council will conduct a public hearing on the Project, the housing financing program, a draft of which is on file with the City, and the proposal to issue the bands therefor. The hearing will be conducted on Monday, August 4, 1997, at 7:00 o'clock pm. The City Administrator is authorized to cause notice of the hearing to be published as provided in the Act. 3. The Borrower may incur expenditures on the Project prior to the issuance of the bonds therefor, and Such expenditures may be reimbursed from proceeds of the bonds, when issued This resolution shall constitute an "official intent" to reimburse such' expenditures for purposes of Treasury Regulations, Sections 1.103-ST(a)(5) and 1.150-2. 4. The law firm of Kennedy & Graven, Chartered is authorized to act as Bond Counsel and to assist in the preparation and review of necessary documents relating to the Project and bonds issued in connection therewith. The City Administrator and other officers, employees and agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents. sMusssa 1 ua'i-as b/E` 3Jtld 0 iE6GEEZ I9' Q I N3At12lQ 'S 1iQ31YN3}t ° W02I3 ES ° 9L G6- I0-"If1C S. The Borrower has agreed to pay directly or through the City any and all cost incurred by the City in connection with the Project, whether or not the Project is carried to completion, and whether or not the bonds or operative insniunents are executed. 6. All commitments of the City expressed herein are subject to the condition that by July 31,1998 the City and the Borrower shall have agreed to mutually acceptable terms and conditions of the loan agreement, the bonds and of the other inswiments and proceedings relating to the bonds and their issuance and sale. If the events set forth herein do not take place within the time set forth above, or any extewoon thereof, and the bonds are not sold within such time, this Resolution shall expire and be of no farther effect. 7. The adoption of this Resolution does not constitute a guaranty or firm commitment that the City will issue the bonds as requested by the Borrower. The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the bonds, or issue the bands in an mount less that the amount referred to herein, should the City at any time prior to issuance thereof determine that it is in the best interest of the City not to issue the bonds, or to issue the bonds in an amount less than the amount referred to in paragraph l hereof, or should the parties to the mom be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. Adopted by the City Council of the City of Albertville, Minnesota. on the 7th day of July, 1997. Mayor Attest: City Administra%r 106225629 AL141-2S tpitp aoaa 0teezecales at 2 tv3llb'2!9 'S Xa3NtPI3x ° w©2t3 bS ° 9 t G6- 10-^tar (3) MEMORANDUM TO: GARY HALE, CITY ADMINISTRATOR, ALBERTVILLE CITY COUNCIL MEMBERS FROM: MIKE COURT, CITY ATTORNEY SUBJECT: POTENTIAL TIF FOR BARTHEL BUS GARAGE/BARTHEL COMMERCIAL PARK DATE: JULY 2, 1997 Don Barthel has presented preliminary plans to the City for the construction of a new bus garage on the same piece of property which houses his current bus Vie. Don estimates that the cost of the building will be approximately $300,000. Don would like the City to establish a tax increment financing district on the building site to help pay for the completion of 60 street to Lachman. Avenue and to help fiord storm water drainage improvements on the site (ponding, ditch moving, etc.). If the City were to establish a TIF, it would be an economic development TIF which would last up to 8 years and would capture an estimated $12,500 in tax dollars (very rough estimate) for each of the eight years of its existence, or approximately $100,000 over the eight year period With an economic development TIF, the City must contribute 10% of the amount of money expected to be generated by the TIF (i.e. $100,000 x 101/o = $10,000) to the project. This money can be contributed over the eight year period or all at once, but must come from general funds of the City. If the City chose not to contribute its 10% to the project; the City would lose approximately 30% of the money the TIF would generate (or $30,000) in the form of LGA and BACA reductions. Once the TIF is established, 75% of the money generated by the TIF must be spent within the TIF district (i.e. on the site). 25% of the TIF money can be spent on public improvements off the site (e.g. for street improvement projects, sidewalks/trails, drainage projects such as lowering the railroad culvert; etc.). If the Council is interested in pursuing this idea, I would suggest that Gary Hale, Pete Carlson and myself work with the Barthels to figure out how the TIF money would be spent both on and off the site. We would then bring the more detailed proposal back to the Council, and if it is acceptable, have the Council set a public hearing for the establishment of the TIF for sometime in August or early September. 1 June 16, 1997 City of Albertville Linda Houghton City Clerk 5975 Main Avenue NE PO 9 Albertville, MN 55301 Dear Linda Houghton: Superior FCR Landfill, Inc. 175 County Road 37NE Buffalo, Minnesota 55313 (320) 963-3158 (800) 963-3158 FAX (320) 963-3051 Superior FCR Landfill Inc., has been servicing the needs of Wright and other area counties for over thirty years. We recently retained a firm to conduct a survey in Wright County to determine the public awareness of Superior FCR Landfill. The survey indicated that Superior FCR Landfill, Inc. is relatively unknown by the public. We therefore have decided to develop a public relations program to identify Superior FCR Landfill, Inc. to the public. Our first effort is to provide information to elected officials, Chambers of Commerce and media. have enclosed, for your review and reference, a study, `Environmental and Socioeconomic Impacts of Superior FCR Landfill, Inc. in Wright County, Minnesota." Your review will raise questions, I'm sure. As you are aware, Wright County is currently studying Conditional Uses of agricultural zoned land. Our present facility and future expansions are located on zoned agricultural land. I will be asking for your support and responding to your concerns regarding landfills as an acceptable conditional use of agricultural lands. I will be requesting to be on the agenda for one of your City Council meetings in July or August. In addition to responding to your questions and comments, I will also present some visuals to provide more information about today's landfills. Please contact me by phone if you have immediate questions or to arrange for a tour of Superior FCR Landfill, Inc. Rod McGillivray General Manager PROVIDING "SUPERIOR" WASTE SERVICES 1 EMPLOYMENT AGREEMENT THIS AGREEMENT made between the CITY OF ALBERTVILLE, Wright County, Minnesota, ("City"), and Garrison Hale ("HALE"), for the position of City Administrator for the City of Albertville. In consideration of the mutual covenants, conditions and terms expressed, the City and Hale agree as follows: 1. =ies and Position: During the term of this Contract, Hale shall perform the duties of City Administrator as set forth on the Position Description,. City of Albertville, attached and incorporated hereto as Exhibit A, and shall perform such other legally permissible and proper duties as the City Council may, from time to time, assign. The City Council may from time to time modify the Position Description, and Hale shall perform any such legally permissible and proper duties as modified. 2. Term: This employment agreement shall consist of a six (6) month probationary period beginning January 1, 1995, immediately followed by a thirty (30) month employment period. Said thirty month employment period shall become effective only upon satisfactory completion of the probationary period by Hale. The City Council shall provide Hale with a performance appraisal on or before the expiration of the six-month probationary period. 3. Salary: The City agrees to pay Hale, for services rendered under this Agreement, an annual base salary as follows: A. Thirty-nine thousand dollars ($39';000.00) in the first year (January 1, 1995 to December 31, 1995); B. Forty thousand five -hundred dollars ($40,500.00) in the second year (January 1, 1996 to December 31, 1996); and C. Forty-two thousand dollars ($42,000.00) in the third year (January 1, 1997 to December 31, 1997). 1 All salary payments shall be payable in installments at the same time as other employees of the City are paid. It is understood that Hale will be given a performance appraisal as part of his annual review. 4. Vacations and Sick Leave: Hale shall have three weeks of paid vacation per year. Sick leave shall accrue at a rate of one (1) day per month, but shall be subject to limitations which may from time to time be established in the City's personnel policy. 5. Comp Time: Hale shall receive comp time for hours worked in excess of forty (40) hours per week on a one-to-one basis, provided, that no comp time shall accrue during such time when Hale has twenty (20) hours of accrued and unused comp time. 6. Insurance: The City will pay the cost of hospital/medical/health insurance premiums for Hale as set forth in existing City plans, or, at Hale's request, the City will pay the cost of continuing Hale's current insurance policies (available through his current employer) covering hospital, medical, dental, life and disability for a period of eighteen (18) months. Upon the expiration of the eighteen month period, Hale shall be covered under then -existing City insurance plans, although Hale shall have the option, during the second eighteen month period of his employment, of declining City insurance coverage and requiring the City, in lieu of providing such insurance coverage under then existing plans, to contribute an amount not to exceed three hundred thirteen dollars ($313.00) per month toward an insurance plan of Hale's choice. 7. Fringe Benefits: In addition to the specific provisions covered in this Agreement, Hale shall be entitled to all other employment benefits provided to full time City employees by law, ordinance, resolution or under personnel policies, including, but not limited to, such things as holidays, hours of employment. 2 S. Dues and Subscrintions: The City agrees to budget and to pay the professional dues and subscriptions of Hale necessary for his continuation and participation in national, state, regional and local associations necessary and desirable for his continued professional participation, growth and advancement for the good of City. 9. Professional Development: The City agrees to budget and pay the registration, travel and subsistence expenses for professional and offic al travel, meetings, official and other functions for the City, including, but not limited to, the annual conference the League oil Minnesota Cities and such other state and local government groups and committees on which Hale serves as a member. Further, City grees to budget and pay the registration, travel and subsistence xpenses for short courses, institutes and seminars that are no essary for his continued professional development for the ood of City; provided, however, that attendance of said even s shall require the express prior approval of the City Council. 10. Civic Club Membersh p: The City recognizes the desirability of representation in and before local civic and other organizations and Hale is authorized to become a member of such clubs and organizations as deemed appropriate' -at City expense. 11. Retirement P1 La: At the option of Hale and in lieu of required employer PERA contributions, the City shall contribute annually an amount equal to the required employer PERA contribution of Hale's then current salary to a retirement" plan of Hale's choice. The payments shall be made in a manner similar to regular PERA payments that are made for other City employees. The City shall authorize Halef retirement plan of choice if such authorization is permis ible by law. 12. Termination: thstanding the three year term of this E�3 f C r agreement, Hale may be terminated from his position with the City: A. For an act or actions for which he is convicted of a crime under the ordinances of the City of Albertville or the laws of the State of Minnesota or the laws of the United States or for an act or actions of discrimination as finally determined by a Court of competent jurisdiction. B. For cause and in accordance with the City's personnel policy. 13. Contract Renewal: A. At the first regular City Council meeting held in July, 1997, Hale shall place on the City Council's agenda notification of the expiration of Hales contract on the following December 31, 1997, and notification that the City Council must notify Hale in writing by September 11 1997 as to whether Hale shall remain as an employee beyond December 31, 1997. B. Upon placement of said notices in the July agenda, the City shall then inform Hale in writing by September 1, 1997 whether Hale shall remain as an employee beyond December 31, 1997. If Hale fails to so notify the City Council as required in subparagraph A above, the City Council shall not be required to inform Hale -prior to December 31, 1997 of his employment status after December 31, 1997. C. If Hale notifies the City Council as required in subparagraph A above, and the City Council fails to inform Hale in writing by September 1, 1997 as to whether he shall remain as an employee beyond December 31, 1997, this contract shall automatically renew at the option of Hale for a period of two additional -years under the same terms hereunder, except that the annual salary of Hale 4 ,I during the additional two years shall not be less than forty-two thousand dollars ($421000.00). Hale agrees to notify the City Council in writing by November 1, 1997 if Hale opts not to have the contract automatically renew under this subparagraph. D. If Hale notifies the City Council as required in subparagraph A above, and the City Council notifies Hale by September 1, 1997 that he will no longer be employed after December 31, 1997 for any reason or no reason at all, the City shall have no further obligation to employ Hale after December 31, 1997, and the normal discharge procedures of the City's personnel policy shall not apply. 14. Severance Pay: The City agrees to pay Hale six weeks severance pay if the City refuses to renew Hale's contract after December 31, 1997, provided that Hale has complied with the notice requirements of paragraph 13 (A) above. 15. General Provisions: A. The City Council shall fix such other reasonable terms and conditions as it may determine, from time to time, relating to the duties and performance of Hale, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, resolutions or ordinances of the City or any other law, and provided that such terms and 'conditions are reasonably related to the duties of the City Administrator position. B. Hale's employment with the City shall be governed by the City's personnel policy, except to the extent that portions of this agreement may conflict with current or future language of the City's 5 personnel policy. If such a conflict arises, this employment agreement shall take precedence overthe personnel policy. C. This writing shall constitute the entire, agreement between the parties. D. If any provision or any portion of this Agreement is held to be unconstitutional, invalid or unenforceable, the remainder of this Agreement or portion thereof shall be deemed severable, shall not be affected and shall remain full force- and effect. IN WITNESS WH �Fthearties have hereunto set their hands this day of, 1994. CITY OF ALBERTVILLE 1 By: 4. /1 Garrison Hale Its: Mayor By. sU Clerk 6 THIS CERTIFICATE Certificate Number _ 10 3 41 SHOWS A DEPOSIT IN THE Dennis Fehn or Bertha Fehn & City of Albertville Account MENumber 7 95 NAMES) OF: Date --------------------------- DOLLARS$10'000.00 IN THE AMovNr of Ten thousand and no1100-- December 7 , 1995 , TERM, MATURITY AND DESCRIPTION: This certificate has a term of' 91 day . It will (first) mature on The minimum balance is $ 000 00 - • using the 365 INTEREST* Your deposit will earn interest at the rate of 4.28 % per year to the first maturity date. We figure interest days per year method. We will compound interest at IDaturit We will pay interest d to rinci al On automatic renewals of this cettificate, the interest rate wilt be the same rate offered on new certificates issued on the renewal date. For this to applyft must have the same term minimum balance and other characteristics as have the new certificates issued on that date. You may can us on or shortly before the maturity date and we can tell you what the interest rate will be for the next renewal term. IT IS RENEWED). YOUR DEPOSIT WILT. NOT EARN INTEREST AFTER THE 11mATURIfY DATE UNDER TSIS CERTIFICATE (UNLESS RENEWALS: FKI If checked, we will automatically renew this ce> ate od each l NOR?BaiES?„ maturity date. Each renewal tam will be the same as the original jerm-,beglrinihS on the maturity date. We will riot automatically renew this certificat O) R you tell us SAINT MICHAEL. RUMMOTA 5537 - not to do so. in writing.: on or before the next maturity date or• (2)1f You Ixesa_t ,-' sj' ALBERTVILLE. MINNESOTA SS301 this certificate to us for payment an or within 10 calendar days aRec: the matudtty 1,. - date if it has a term of more than 31 days. and one calendar day if it; has a term of seven to 31 days. SINGLE MATURITY: El elsecked. we. wN riot automatically renew this certi$cate,'„ It will mature once on the maturity date.,., 'ERSONAL ACCOUNTS: You have requested acid ltend the type of account marked beknhr J Individual Joint Account - With Survivorship Joint Account - No Survivorship (cast ­""— in Trust: Separate Agreement Dated Pay -On -Death or ❑ Revocable Trust )esignation as defined in this agreement Beneficiaries named below) REVOCABLE TRUST OR PAY - ON -DEATH ACCOUNT BENEFICIARIES 983 Bankers Systems. Inc.. St. Cloud. MN It NONPERSONAL ACCOUNTS: Depositor is a: Partnership ❑ Corporation Authorization dated The NUMBER OF ENDORSEMENTS needed for withdrawal or any other purpose is: one 1) COMB-COSC-MN (1) 1: t 5:93 474-42-0158 SOCIAL SECURITY OR EMPLOYER'S LD. IUUMBER correct taxpayer identification number is requued for almost every type of account. A certification of thw number is also required and is contained on the first copy of this certificate. BACKUP WITHHOLDING A certification that you are not subject to backup withholding is necessary for almost all accounts (except for persons who are, exempt altogether). This certification is contained on the first copy of this form. Failure to provide this certification when required will cause us to withhold. 31% of the interest earned (for payment to the IRS)_ Providing a false certification can result in serious federal penalties. ENDORSEMENTS - SIGN ONLY WHEN YOU REQUEST W1T2WXftwA& X X X ,AD OTHER SIDE FOR ADDITIONAL TERii M c 1 a f Yr MEMORANDUM DATE: July 1, 1997 TO: City Council FROM: Council Committees & Staff MMJ: City Department Report - April 1 to June 30th The following represents work assignments status/update: City Clerk -Treasurer - 2nd Quarter Sewer Billing - Budget 1998 - Clerk/Secretary Training - Budget 1997 (6 month update) City Administrator/Zoning Officer JMJ Properties (Minneapolis Factory Shoppes) - Nothing happening - Golf Course Project is ongoing - Fairfield Addition - is complete - Cohen Companies still has not produced on balance of Roden property. Option expires November 1997. Comprehensive Parks and Trail Plan is in final public hearing. July finish date - Ditch cleaning - various locations needs to be completed fall of 1997 - CSAH 37/19 Intersection Realignment Project Plans in process - Developers - Lots of visits and calls - PW building - Estimated $40 to $45 square foot. Proposed costs $140,000 to $180,000 exclusive of site costs Plats: Cedar Creek North, Center Oaks, Cedar Creek Golf Course Concepts, Vetsch Custom Cabinets, Sunrise Commercial Park Public Works & Parks - Park benches - Engraving remains. - Plan 1997 year - PW - equipment, storage, staffing and insourcing vs. outsourcing - PW Staffing - PW Grass at Westwind Park - Park maintenance City Attorney W CSAH 19/37 Intersection Realignment Billboards Water tower lot title Ice arena a) Joint Powers Agreement b) Funding Agreement c) Operating Agreement d) Other City Administrator Contract City Engineer - WWTF Planning - Street Patching/Milling/Overlay - Ice Arena - Utilities, drainage, etc. - CSAH 37/19 Intersection Realignment Project - Greenhaven Drainage Project - Culvert Lowering Project behind Savitski property - 61st St. Lift Station - Electric Panel Relocation City Planner - Comprehensive Parks and Trails Plan - prepare/hearing/implementation - Developer Projects Cedar Creek North, Center Oaks, & Golf Course - Ice arena planning/site review/legal - Vetsch Custom Cabinets - Security State Bank of Maple Lake - Don's Bus Garage - Performance Standards (RE: minimum housing size) - Sign Ordinance - Billboards (RE: spacing) City Council CSAH 19/37 Project - all aspects - Golf Course - residential/golf course - Public Works Committee - Planning for facilities, equipment, staffing, etc. Budget 1998 - Personnel Committee - Finish personnel policies and staffing for Clerk, Administrator and Public Works Joint Services & Transportation Committee - Otsego & St. Michael joint issues Finance Committee - 1998 Budget Public Safety Committee - Establish Committee. Work on budget 1998 for Police, Fire and Animal Control. Work on joint opportunities with neighboring communities with preparation of "futures" cost estimates that may be included in 1998 budget. Work on City ordinances that may be required. FYI CITY OF � TVI FOLLM_Y* i SHEET As of Jul= 7, 1997 DATE ACTION TO BL TA1CSi1 PERSON 04/96 Comprehensive Park & Trail Plan P&Z/ In Process ( finish July 1997 ) Oasral 05/96 WWTF Planning Eng. In Process (July - September 1997) 07/96 Primary School Park/Drainage Plan Eng/ On Hold Admin 08/96 CSAH 19/37 Intersection Realignment Project Staff/ In Process Oomdl 09/96 STMA Ice Hockey Arena AciNW In Process Atty 09/96 Cedar Creek Golf Course (Center Oaks) henco/ In Process Comm. 09/96 Ditch Cleaning - City (needs right of entry) AdErdn/ On Hold Eng 02/97 PW Maintenance Building - New or Used SWV On Hold cmadl 04/97 Frankfort Drainage Eng. In Process 04/97 Culvert Lowering Project - Savitski Area Eng. In Process (Part of CSAH 19/37 Project) 04/97 Street Patching/Milling/Overlay BVM✓ In Process Eng. 05/97 Cedar Creek North P&Z/ Council 05/97 Center Oaks P&Z/ Council 06/97 Budget 1998 Fk=W In Process cbmcil