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12/12/1988 CONF MTG - 5396�. C=TY OF FRIDLEY MEMORl�NDIIM ,T • TO: IiII,LIAM W. BIIRNS, CITY MANAGER �� FROM: RICHARD D. PRIBYL, FINANCB DIRECTOR � � h � I.. � w SIIBJECT: PROPOSED ADDITIONAL POST-RRTIREI�ENT BENEFIT LEGZSLATION DATE: December 7, 1988 We have previously talked with Council about the proposed legislation that is called the 13th Check or pouble COLA. Bill Hunt and I have been taking a passive role in the group that has been meeting at the Touche Ross board room. A meeting was held on October 27 which neither Bill nor I could attend. At this meeting, they took action to engage the services of Touche Ross to provide technical actuarial assistance and provide a lobbying effort to fight off the up and coming legislation of the additional post- retirement benefit. The cost of this service will amount to $50,000 and would be divided up according to a plan worked out by the League of Minnesota Cities (Exhibit 1). If the City of Fridley were to participate, the League has our share at $3,000. The League has recommended that the forty-seven pension funds be grouped into six groups that have the same general actuarial characteristics. These six pension plans would be used for study and all other pension plans would have to draw conclusions based on a similar plan that was studied. The conclusion that will be reached is, what is the long term financial impact of the legislation. At this time, the cities that are discussing this item are looking at the impact it will have on the city of Minneapolis. Since we talked last with the Council on this subject, the Minneapolis Police Pension Association has engaged Brian Rice to run numbers to use as part of his lobbying effort to get this legislation passed in the next session that would be applicable State-wide. To refresh the Council's memory as to what this legislation is, it deals with the distribution of supposed actuarial surplus in the pension assets. What the legislation allows for is the annual distribution of excess investment income. This amount is calculated by comparing the top grade patrol officer's increase in monthly income plus 1.5$ to the time weighted rate of return of investments. That excess cannot exceed 1.5� of the total fund assets. The amount that is detenained as excess will be distributed as follows: One-third to eligible members in an amount not to exceed .5 percent of fund assets. The State amortization will be reduced by the one-third amount. The City's minimum � obligation w�ill be reduced by one-third. On the surface, this , appears to save the City money. What it does, according to the City of Minneapolis, is to create a huge deficit requiring funding in later years. The City of Minneapolis calculated that by the year 2011, the 13th Check could cost them an additional $73,000,000. The City of Fridley's financial impact is not goinq to be as great as other cities because our Fire Relief Association had a special bill passed last year that converted them to a defined contribution plan and remaved them from this type of liability. Our additional liability would be the increased costs as it relates to the Police Pension Association. We are also aware there is an interest within our Police Pension group of converting to the Public Employee Retirement Association. This action also would lessen any impact if a State-wide legislative action would occur. At the last meeting, the members of the concerned cities formed a Steering Committee for the study and established the group that would go through the actuarial review. Those groups are: Austin Police, Crystal Police, St. Louis Park Police, Virginia Fire Fighters, and Mankato Police and Fire. In talking to Touche Ross and the League of Minnesota Cities, they have information from all cities but West Saint Paul that they will be committing to the assigned distribution of costs. I would recommend, since our potential liability is less than other cities, we contribute $2,000 for the study. We will then be able to determine what impact the legislation would have on the City as it relates to the Police Pension Association. If Council concurs with my suggested action, the attached resolution should be approved at the December 19 meeting. � RESOLIITION NO. - 1988 A RE80LDTION AIITHORIZING THE TRANSFER OF $2,000 FROM THE EMERGENCY REBERVE TO THE FINANCE DEPARTMENT WHEREAS, the City of Fridley has determined that the proposed Private Pension Plans Fost Retirement benefit Legislation is not in the City's best interest, and WHEREAS, the future cost of the benefit should be actuarially determined, and WHEREAS, the City will be sharing costs of the actuarial study with the League of Minnesota cities, and WHEREAS, the sum of $2,000 is needed to determine the financial impact of the additional benefit. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the city of Fridley authorizes the transfer of funds, within the General Fund from the Emergency Reserve Fund, to the Finance Department in the amount of $2,000. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS DAY OF , 1988. � ATTEST: SHIRLEY A. HAAPALA, CITY CLERK WILLIAM J. NEE, MAYOR , � Over 100,00� 50-ioo,occ 25-SO,OG� 1_-2=,C _ i �� _ I �� \ .. L 13th check - 86 Session Suggeste� Contrib�tie� rate (Refund unuse3 funds prorata) St. Paul Mir.neapolis Bloo:�:ington Rochester Duluth Czystal Frid:eJ Man}:a � � Rich�ie:� St. Clou,a. St. Louis Paz}; i+inona Albert Lea Ano};a Austin Colur..bia Neights FaribaL�t Hibbing So. St. Pa;:l hest St . Pa;:l Brainer� Fa i rmor.t h'e» L'lm Re3 wing Virginia $ 5,0OO.OG $ 1,000.00 5 4,OOC.00 5 4,OC�C.00 5 4,000.00 5 3,000.00 $ 3,OOC.00 5 3,OOC.Q� S 3,OOC.00 $ 3,OOC.00 5 3,OQO.QO 5 3,OOG.OG $ 2,50�.0� 5 2,500.00 5 2,50C.00 $ 2,500.00 5 2,500.00 5 2,500.00 5 2,500.OQ $ 2,500.00 $ 1,SOC.00 5 1,50G.OG 5 1,500.00 5 1,500.00 $ 1,500.00 L'r.der 1C, G0� Chisholm $ 500.00 Crookston $ 500.00 Thief River Falls $ 500.00 E��.� ' ., , �r Trbtn�/VMednesdayiNoverr�ber 3U�1988 �Minneapolis debates increase in pensions By Dennis J. McGnth StatT Wnter Minneapolis otficials and the leaders of thc city's polia and firc pension tunds are arguing over a proposal to increase the benefits paid to the 1,192 police and firc pensioners. Pension fund officials want to boost bencfits by adding a so-called "13th check" to the 12 monthly payments in years in which the funds' invest- mcnts do well. i'he plan could bring an additional 51,500 a year to retir- ees, and about half that to their survi- vors. But some city ofticials say the pen- sion fund proposal would be enor- mously expensive for city taxpayers over the next several decades. A con- sultant for the city estimated the ad- ditional cost at a total S 13I.8 million, or S33.5 million in prcsent-value dol- lars, in the next 23 years. Looming ovtr the dehate, which has simmcred in City Hall for much of the year, is the l.egislaturo, which ma} approve the pension fund pro- posal when it convenes in lanuary even if the City Council mjects it at a meeting Thursday. The state Aas a 'stakc in this because il would save about S4 miUion a biennium on its contributions to the police and fire pensions, under the funds' proposal. Currently, pcnsion increases tor rctir- ecs in the Minneap�lis Police Relief Association and the Minneapolis Firc Relief Assaciation are tied to the salary settlements ot active police and firefighters. Because of that mechanism and because the city has tried lo contain salary incrcases, the policc and fire pension paymenu have not kept paa with other munic- ipal and state employa pension funds, said Brian Rice, an attorney and lobb� ist reprcsenting the polia and fim pensions. VVherc other Minnespolis rctirees havc had pension incrcases of � to 9 perccnt in each ot the past several years, polia and firc pensioners have san increases of 4 to S percent, Rice said. Police and firc pension kaden say thcy have done such a good job of managing their investments, helo- ing boost the combined assets from �=30 million in 1979 to about 5250 rniUion now, that the retirees should sharr in the windfall. 'T6e investment income accumulates in the funds. "!t's an issue of fundamental fair- ,�ess," said Rice. "It's their money, their investment decisions that make the 6ains. Through an unintended quirk in the pension laws, the city has gotten the benefits from the in- vestment gains." The city would ben- efit from good invcstment returns because the city's annual contribu- tions to the fund would be less and it would bc able to stop making contri- butions earlier than 2010, the targct datc for when there would be enough money in the fund to cover all ex- pected future pension payments. Pension leadcrs propose that in years when the funds earn a rate of return of more than 1.5 perventage points abo�•e the salary settlements for ac- ti�•c employces, a 13th check would bc distributed to members. If earn- ings are especially good, it could translate into as much as S50 milhon for mtirees by 2010, said Rice. The city and state each could get a SSO million reduction in their contribu- tions to the funds during the same period, he said. �City oflicials and the city's consul- tant disputes the pension funds' cal- culations, just as the funds say the city's and the consultant's numbers are in error. While the 13th-check proposal would immediately lower the propeny tax levied by the city to pay for the pensions, it would ulti- mately cost city taxpayers an addi- tional 5131.8 million, or 533.5 mil- lion in present-�•alue dollan, accord- ing to an analysis by the cjty's con- sulta,it, Touchc Ross Rc Co. i � � I � � Health Planning & I� � Management Resources, inc. � i �1 1 ,� � PROPOSAL �� OR CONSULTING r �SSISTANCE � � For � ' THE CITY OF FRIDLEY, MINNESOTA �� i PRESENTED BY: � I HEALTH PLANNiNG & MANAGEMENT RESOUFtCES, INC. DECEMBER 2,1988 I � ' I �Prime Professional Center 4970 Lincoln Drive Edina, Minnesota ,55436 612-935-6077 � TABLE OF CONTENTS PaQe Introduction/Overview ................................................................................... 1 Proposed Market Feasibitity Analysis Phase I: Preliminary Demand Projections and ProjectDefinition .................................................................................... 2 Phase II: Consumer Research ................................................................5 Fina! Report ............................................................................................6 Proposed Process .......................................................................................... 7 Qualifications of Health Planning & Management Resources, inc. General Background .............................................................................. 8 Client References .................................................................................11 Project Fees and Timetable ProjectFees ................................................................ .....................13 Timetabie.............................................................................................13 Attachment Biographical Sketches of Key Project Personnel � ' ' INTRODUCTION/OVERVIEW Health Planning & Management Resources, Inc. is pleased to provide a ' proposal for assistance in completing a market feasibility study for the demand and potential for housing for senior citizens in the Fridley area. ' ' , HP&MR has served over 350 clients in 17 states and a foreign country since its inception in 1977. Clients have included an e�ensive range of health and human service providers as well as organizations involved in policy development related to housing, programs and services for the elderly. The firm has also worked with private developers and government organizations in the analysis and development of market rate senior housing and programs to support the housing. � In addition to experience and familiarity with alternative housing and living arrangements for the elderly, HP&MR has extensive knowledge and experience with service needs and service delivery for the e(derly. This combination of , experience and knowledge will enable us to provide a useful and realistic market feasibility analysis of the potential for development of senior housing. , � ' ' ' ' L� ' � � The proposal outlines the following: 1. � 3. ►� DEFINITION OF MARKET FEASIBILITY ANALYSIS TO BE COMPLETED PROCESS TO BE USED IN COMPLETING THE ANALYSlS QUALIFICATIONS OF HP&MR TO PROVIDE THE PROPOSED ASSISTANCE AND CLIENT REFERENCES FOR HP&MR PROJECT FEES AND TIMETABLE �IIi u � � I'� PROPOSED MARKET FEASIBILITY ANALYSIS , The following defines the analysis that will be done for the assessment and definition of the senior housing program. ' Phase I: Preliminary Demand Projections and Project Definition , Definifion of Market Area , The City of Fridley will be defined as the market area. If there is need to further refine the City into smaller areas such as census tracts, this information � can be made available. HP&MR will define the area based upon the ne�ds of the , client. , Demographic and Socio-Economic Anal�sis of Market Area ' The demographic and socio-economic data that impacts the potential need for senior housing will be completed. This includes assessing the existing , and projected population for the target market as well as �iving arrangements and income levels. Our firm has on-line access to a national data base system which carries population statistics for 1988 and 1993 for any area in the Urnted States, ' and the system enables us to develop detailed income and economic data regarding the senior population in the given market area. Any type of geographic base can be used for the data, including a geographic area defined by census tracts or streets and highways rather than cities, townships or counties. This data ' forms the basis for demand projections. � LJ ' ' �� ' � ' ' , C� ' L� � � ' �� I �� ' I�+ �_J ' ' , ' , ' , ' Definition of Continuum in Senior Housing and Livinq Arrangements. Services, and Ownership/Fee Structures A complete definition of housing program and service options wiff be defined for the senior marketplace. In addition to a definition of the continuum of housing programs that exist or are devefoping with service options, the various types of ownership/fee structures will be defined. The definition will include relationships with what is developing in the State and local marketplace. This definition of options will be used as a basis for exploring the feelings of area seniors about various options, when the consumer research is completed. A part of this analysis wifl inc(ude the definition of continuums that may, at some point, include levels of licensed care, e.g., board and lodging. Because of the wide variations in senior alternative housing, a knowledge of the full continuum, including potential funding sources, is important. Inventory of Senior Housing and Services A complete inventory of subsidized and market rate senior housing projects in and near the market area will be developed. The inventory will include the name and location of the project, unit sizes, rental/ownership structure, number of units, completion date, unit features, structural type, e.g., high-rise, amenities, services required and/or available, parking facilities, other special features, and market history. HP&MR has long-term experience in tracking the market trends of project types in the Twin Cities area and will make this information available in the present analysis. An inventory of community-based services available to elderly living in their own homes will also be completed. This inventory is used to assess the support system that exists for seniors living in their own homes, which will influence their readiness to consider senior retirement housing. Ana�sis of Site Requirements and Potential Locations Based on known research related to senior housing projects, an identification of the most desirable characteristics for site locations wi!! be 3 � �J ' discussed. If the City has a specific site to be analyzed for market characteristics, this will be completed by HP&MR. � Demand Projections and Project Definition ' Based on the foregoing analysis, an identification of the potential feasibility ' for senior housing will be defined. Demand projections will be completed to determine the number of units feasible at various income levels in the market area and will include sxpected absorption rates. This analysis will include a program ' definition for projects, identifying the likely elderly market segments that should be pursued. This preliminary definition will be related to the socio-demographic analysis, current local and State trends, and the competitor analysis. ' The demand projections will address both primary and secondary market demand. In addition, analysis will be completed of inmigration patterns of older � persons, usually returning from early retirement year communities, as well as the potential demand from middle aged adults moving older parents to be near them ' in the market area. Our firm has completed direct consumer research among middle aged adults about their parents and thus have a reliable data base to use for potential projections of demand. ' Th r I r e p o�ect defirntion will address size of pro�ects as well as renta o ' purchase ranges that can be supported and are likely to be accepted in the local market. A preliminary identification of service package needs in senior housing projects will also be discussed based upon the demographic make-up of the local ' senior market. � II � �_J ,� �� 4 ' � _� ' ' Phase !i: Consumer Research ' Foliowing a preliminary analysis of the potential for senior housing in the ' market area, HP&MR will complete two additiona! types of market research, focusing specificaily on the consumer. The consumer survey and focus groups are described below. ' Consumer Survev , HP&MR will develop a written survey to be mailed to a sampie of residents in the defined market area. The sample will be oriented to the specific market , identified by age and level of income. ' The survey will "test" certain assumptions that have been made about the market segments through feedback from potential customers about preferences and perceived needs regarding senior housing in the market area. It will also ' provide additional demographic and economic information about respondsnts that can be related to stated preferences and perceived needs. , L _J ' , , � � C� 5 � ' Focus Grouas Focus groups are used to supplement the consumer survey. The focus groups provide feedback that is useful and enriches the interpretation possible in the survey. The nature of focus groups enables staff to have a more indepth discussion about selected items than is possible through the mailed survey. Two focus groups can be conducted among groups of 8 to 12 seniors who are interested in senior housing. The focus group results will produce more qualitative data regarding preferences and perceived needs for senior housing inc(uding specific design, cost and service considerations. Final Report Based upon the primary and secondary market research, the final report will be completed. In addition to the socio-demographic analysis and results of consumer research, this report will include the following: 1. NUMBER AND TYPE OF UNITS THAT CAN BE SUPPORTED 2. COMPLETE DEFINITION OF PROJECT TYPES BEST SUITED FOR THE MARKET AREA, e.g., INDEPENDENT LIVING, ASSISTED LIVING, etc. 3. DEFINITION OF SERVICE PACKAGES AND HOW SERVICE PACKAGES SHOULD BE ORGANIZED, e.g., WITHIN A PROJECT, CONTRACTED TO ANOTHER PROVIDER, etc. 4. 5. DEFINITION OF COST STRUCTURES MOST LIKELY TO BE ACCEPTABLE IN THE MARKET AREA DISCUSSION OF PREFERRED CHARACTERISTICS AND CRtTER1A USEFUL tN ANALYZiNG SENIOR HOUSING SITES � PROPOSED PROCESS HP&MR wi!! work closely with the ciient during the market feasibility analysis process to ensure that all areas of concern are addressed. The following defines the proposed working relationship. 1. An initial meeting will be held with the client to discuss any project concepts that have been planned to date, identify any sites that have been proposed for development and identify key individuals to interview for the first phase of the analysis. 2. The research for the preliminary demand projections and project definition will be completed by HP&MR. 3. HP&MR will develop a proposed consumer survey based on past experience and information gathered in the preliminary analysis and will meet with the client to review the proposed survey instrument. This will allow us to ensure that all items of importance will be addressed in the survey. 5. � 7. � � ' The survey wili be conducted. The focus groups will be conducted and the final report completed. HP&MR will meet with the client to review and discuss the final document. 7 C� �'� � � ' ' ' LJ � ' QUALIFICATIONS OF HEALTH PLANNtNG & MANAGEMENT RESOURCES, INC. General BackQround As previously noted, HP&MR has served over 300 clients in 17 states since its inception in 1977. This has included a significant number of clients providing health and other services for the elderly. HP&MR has developed an extensive file of types and design of market rate retirement center housing through the firm's invoivement in over 40 market feasibility analyses throughout the Upper Midwest in both rural and metropolitan areas over the past several years. In addition, the firm maintains a data base of consumer research on the needs and pre�erences for elderly housing from over 5,000 senior citizens. The quality of work completed by HP&MR has been recognized by previous clients, architectural firms and financing and lending institutions. ' The research process carried out by HP&MR involves a significant amount of contact with the local community, which in turn produces a more accurate assessment of the potential for a proposed senior housing project. HP&MR ' provides the advantage of knowing not only the housing market for the elderly, but afso knowing the service needs of the elderly. Staff of HP&MR have been national and regional speakers for conferences for providers and developers ' addressing the housing and alternative living arrangements market for the e(derly. ' � Following is a brief synopsis of a selected number of senior housing related projects completed by HP&MR. This information is presented to give a background into the capabilities and expertise of HP&MR. 1. A member of your proposed project team, McCullough, served as a , judge for market rate senior housing in the Twin Cities metropolitan area in 1988. The Awards in Excelfence were sponsored by the Senior Federation and the Minnesota Association of Homes for the ' Aging. Over 50 projects participated in the awards program. The � : L_J ' ' � , � � � CI�, ' � ' � � � , C� � �� ' judging teams personally visited and extensively reviewed a wide variety of housing projects available in this market area. 2. Our experience in the Twin Cities market is important to note in that this market place has more supply than demand at this time; thus, we are abfe to evaluate the impact of competition on the senior market. Most seniors have more than one choice in their immediate neighborhoods. Because of our involvement over a five year time period, we have tracked a variety of projects, and have ongoing information about changes in occupancy status, impact of new products entering the market, etc. 3. HP&MR completed a comprehensive assessment of the Minneapolis/St. Paul market area for a private developer who had initial interest in purchasing a project that was currently on the market and not doing well. For that assessment, in addition to other types of assessments, our firm had a"senior citizen" visit each project and complete a comparative anatysis of the project. 4. HP&MR completed a market feasibility analysis for a senior housing project which would be located in a highly competitive market. The analysis gathered data on two distinct markets, the local residents and those affiliated through the Baptist Church. Very specific recommendations on size, fee structure and service amenities were given by HP&MR to ensure a successful project. 5. HP&MR completed a detailed assessment of the need for housing for senior citizens in the Cities of Apple Valley, Burnsville and Eagan in Minnesota, for the Dakota County Housing Authority. The study included a socio-demographic analysis, key informant interviews and extensive direct consumer research among senior citizens and adult chi�dren. The resulting work identified a need for a variety of senior housing units, from subsidized to market rate, in all three cities. The individual city councils will act upon the recommendations. �7 i� ' , � ' ' �� C� C ' C � ' ' � ' C C� 1 6. HP&MR assisted a nursing home in Southeastern Minnesota in the development of a strategic plan. As a result of the completion of the initial plan, the nursing home made a major move into the development of non-institutional services for the elderly. . HP&MR then assisted them in a feasibility study for the development of a market rate congregate living facility. 7. HP&MR completed an assessment, for a large nursing home/housing operation, of an existing senior housing project located in another community. The purpose was to determine the potential for our client to purchase the project from the developer. Our assessment gave the client greater insight into the issues associated with the poor success of the project and a leveraged position when and if a purchase is negotiated. 8. HP&MR was asked to assess a particular market to deiermine the potential for construction of a 250 market rate senior housing project to be located adjacent to a nursing home. HP&MR raised several issues associated with the planned project which did not support a project the size of 250 units. The client has developed a 104-unit project. Phase I, 52 units, was completed in November 1987. 9. HP&MR recentty completed a comprehensive analysis of 16 market areas in Dakota County in Minnesota. The analysis was geared toward the identification of need for low to moderate income senior apartment units. Market rate senior housing demand analysis was also completed. The research involved a comprehensive inventory of existing senior housing in the County and key informant interviews with persons on a County-wide basis to further identify need. A preliminary prioritization of need among the market areas was established. The results will be used by the County Housing and Redevelopment Authority when planning future development of senior housing throughout the County. ,o Client References The following persons are references for the quality of work that Health Planning and Management Resources, Inc. has completed and the relationship that we establish with our clients. Additional references that are most similar to the client/sponsor of a proposed project can also be furnished. Mark Ulfers, Executive Director Dakota County Housing & Redeveiopment Authority 2496 145th Street West Rosemount, MN 55068 Phone: 612/423-4800 � Gerald D. Glaser ABG Financia! Services, Inc. 111 3rd Avenue South ' Minneapolis, MN 55401 Phone: 612/339-8700 Jerry B. Scott Senior Vice President Catholic Health Corporation 920 South 107th Street Suite 200 Omaha, NE68114 Phone: 402/393-7661 Robert D. Blincow, Administrator St. Anthony Regional Hospital South Clark Street Carroll, lowa 51401 Phone: 712/792-3581 11 ' , �� , , , , ' ' , �I� , ' ' C � L � ' Ho!!y Scott VHA/Oxford Development 5215 North O'Connor Road Suite 1860 irving, TX 75039 Phone: 214/830-0092 Dan Lindh, Chief Financial Officer Presbyterian Homes of Minnesota, Inc. 3220 Lake Johanna Blvd. St. Paul, MN 55112 Phone: 612/631-6000 David G. Wolterstorff Continuum, Inc. (Developer of a number of senior projects in Upper Midwest area) 381 East Kellogg Blvd. St. Paul, MN 55101 Phone: 612/227-0644 Michael McConnelt, C.P.A. Larson, Allen, Weishiar & Company 600 County Road 18 So�th Suite 1200 Minneapolis, MN 55426 Phone: 612/546-2211 12 ' ' PROJECT FEES AND TlMETABLE I�' i ' Project Fees 1. Phase I-- Preliminary Demand Projections and Project Definition: ' $4,500 plus out-of-pocket expenses ' 2. Phase II -- Consumer Research: Consumer survey: $3,000 plus out-of-pocket expenses including ' mailing and/or distribution costs for survey ' Focus Groups: Two focus groups at $500 each. (fhis is an optional item and wiA be carried out at the clients request). � Timetable ' 1. Initia! feasibili stud : three weeks tY Y ' C ns m r s rve and fo us rou s: six weeks 2. o u e u y c g p ' ' ' ' , ' 13 � ' i , ' � , � , ' ' , ' ' ' ' � �I �' �,� �I �� ' '' ATTACH M ENT BIO�RAPHICAL SKETCHES OF KEY PROJECT PERSONNEL ' � PATRICIA A. MCCULLOUGH , McCullough is a founding principal in HP&MR, Inc. She has had fourteen years of experience in consulting for health care organizations. She has worked in a project management capacity for all types of clients served by HP&MR. ' McCullough has been completing extensive research in the needs and market � demands of seniors for both shelter and services. Her involvement includes market studies, special assistance in project development, review and recommendations regarding marketing activities, and presentations to a variety of groups in the region ' regarding senior housing and service preferences, etc. She served as a judge for the Awards in Excellence for Senior Housing in 1988, sponsored by the Minnesota Association of Homes for the Aging, the Metropolitan Senior Federation and Senior's ■ Choice. , Prior to forming HP&MR, she worked in the membership services division of the Minnesota Hospital Association/Minnesota Association of Homes for the Aging providing strategic planning, feasibility studies and other types of assistance to member hospital and homes. She also worked as a special consultant and i� subsequently, the Public Information Administrator for a metropolitan regional planning commission. � ' � She received a Bush Foundation Leadersnip Fellowship in 1979 and studied strategic planning systems as well as health systems research at the Sloan ', Management School, Massachusetts Institute of Technology, Cambridge, , Massachusetts. � McCullough is on the graduate faculty of the Masters in Business Communications at the College of St. Thomas, St. Paul, Minnesota and has served on the graduate � faculty of the Programs in Health Care Administration at the University of Minnesota in the Afternative Studies Programs. She has designed and taught courses to graduate students that include organizational communication, strategic planning and � human resource management. � � McCullough has made a variety of presentations focusing on health care trends, diversification and new business opportunities for state, regional and national � programs. McCullough has a Master's Degree in Organizational Communication from the ' University of Minnesota and has completed her poctora) course requirements and exams. � C C C ' ' THOMAS R. McMORROW McMorrow is a founding principal in HP&MR, Inc. He has had fifteen years of experience in health care management and consulting. , McMorrow directs projects for various clients and also serves as the managing partner for HP&MR. During his ten years of experience with HP&MR, he has worked with all types of health care providers as well as private developers. He has worked ' with the development of new business opportunities in health care for private businesses. � ' ' ' �� I u n � ' ' � ' LJ He has had three years of experience managing a national health care data system in the State of Minnesota for Hospital Administrative Services of the American Hospital Association. He both marketed and provided ongoing service consultation for clients in Minnesota. He worked in a consulting division of the Minnesota Hospital Association/Minnesota Association of Homes for the Aging, providing strategic planning and financial consultation, and did project research for members of the Association. McMorrow was the administrator of Griggs County Hospital and Nursing Home in Cooperstown, North Dakota for three years immediately following his graduation from col(ege. He graduated with a Bachelor's degree in Business Economics from North Dakota State University and also received his degree in Hospital Administration through the program at Concordia College. He received a Master's degree in Health Care Administration from the University of Minnesota. McMorrow has served as a graduate faculty member of the University of North Carolina Program in Health Policy Administration, providing faculty preceptorships for students in the Master's program. He has also served as a preceptor for the Hospital Administration program at Concordia College. He is a member of the American College of Healthcare Executives and the Healthcare Financial Management Association. , C � MARY F. WHELAN ' Whelan is a consultant with HP&MR and has worked in the health care field since her graduation from Concordia College in 1982. ' Whelan's experience at HP&MR has included extensive work in the development of ' data bases for strategic planning, marketing and feasibility studies for various clients. She has worked with top administrative staff in interpreting and using the data for decision making. ' Whelan is responsible for carrying out and coordinating market research conducted , by HP&MR. She has skills in research instrument design, data collection and computerized data analysis. Whelan has special expertise in conducting research among the elderly population. , Whelan also has extensive experience in conducting market feasibility studies for ' senior retirement centers in both rural and metropo{itan areas. She has worked with hospitals, nursing homes, churches, architects, developers and city officials in carrying out the feasibility analysis process. , Prior to joining HP&MR, she was the Assistant Director of Planning and Marketing at ' St. Joseph's Hospitaf and Health Center in Dickinson, North Dakota. � Whelan graduated from Concordia College in Moorhead, Minnesota with a Bachelor's degree in Hospital Administration and Organizational Communication. She is a licensed nursing home administrator in the State of Minnesota. ' Whelan is completing her Master's Degree in Business Administration/ , Communication at the College of St. Thomas, St. Paul, Minnesota. t , � ' I � I � CITY OF FRIDLBY M S K O R A N D II M . TO: WILLIAM W. BIIRNB, CITY MANAGER �!'�� FROl�i: RICHARD D. PRIBYL, FINANC$ DIR$CTOR BIIBJECT: PENDING ASSESSMENTS AND ESCROW DEPOSITS DATE: December 8, 1988 In my response to the auditor's management letter, you may recall there was a section that addressed pending assessments. The intention of this memo is to give a little more background information on the problem and make a proposal for a solution. Minnesota Statute 429.041, Subdivision l, provides that a city shall let a contract for a proj ect no later titan one year after the adoption of the resolution ordering the improvement unless a different time is specifically stated in the resolution. For a number of years the City has been listing pending assessments on property searches that come from title companies. These "pendings" originated either as estimated future costs related to a completed and assessed project or were associated with a general resolution pertaining to a given area (i.e. $8.00 per 100 square feet or $800 per lot). In either case, this practice is in violation of Minnesota Statute 429.01. Since the early 1970's, the City has been collecting escrow deposits for some of these "pending" assessme�ts with no project ever materializing. Consequently, we are currently holding approximately $27,000 that needs to be returned to the depositors. This situation is, and has been of great concern to us. We would like to make the following proposal to rectify the situation. First, all pending assessments with the exception of current projects, i.e. St.1988-1 & 2, must be terminated from their "pending" status. Second, all escrow deposits related to these "pendings" projects should be returned to the original depositors. This may present some problems. Not only will it be difficult to track own the depositors, but there has been no interest accruing against these funds. As a result of the amount of time that has passed, it is possible that some individuals may find these circumstances upsetting. : 1 The Finance Department does have records of the original depositors and we are currently trying to locate these individuals. We are prepared to send out the letters along with the refund checks. We are also prepared to handle the first contact with these individuals if they decide to question our procedure. Iiowever, if we are not able to satisfy an irate citizen, we will be looking for your support. I have attached sample letters for your review. "Exhibit 1" would be sent to the title companies we currently do business with. "Exhibit 2" would be sent to the depositors of moneys held by the City along with a refund check. This problem and proposed solution has been reviewed by the City Attorney. Please advise if this solution is satisfactory. • 1 "EXHIBIT 1" December 8, 1988 xyz To Whom It May Concern: The City of Fridley has recently gone through an extensive review of its pending assessment projects. Many of the projects have been removed form their pending status and terminated. We would like to share this information with you. I am sure your company will be as anxious to release these funds as the depositors will be to receive them. Please contact us regarding any escrows you are holding on behalf of the City of Fridley. At that time, Mary Smith will be able to give you the exact status of each of your escrows. Thank you in advance for your cooperation. We look forward to hearing from you. Sincerely, • Julie M. Burt Assistant Finance Director � I � "EXHIBIT 2" December 8, 1988 xyz To Whom It May Concern: The City of Fridley has recently gone through an extensive review of its pending assessment projects. The decision has been made to remove many of these projects from their pending status and terminate them. At some time in the past, the City collected $ from you as an escrow deposit for one of these pending assessment projects. Since the project has now been terminated, we are refunding your money. If you have any questions regarding this matter, please contact Mary Smith at extension 132. Sincerely, Julie M. Burt Assistant Finance Director i n � � � � � � CITY OF FRIDLEY M8MOR1�iNDIIM TO: WILLIAM W. BIIRNS, CITY MANAGER �'�. � FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR SOBJECT: ACCOUNTS PAYABLE DATE: December 7, 1988 Attached you will find a list of claims that was run off of our normal Accounts Payable process that needs to have an informal approval by our Council on December 12. Because of the long lapse of time between the last Council meeting which was November 21 and the next meeting on December 19, it is necessary to provide for another payment process. If Council gives me the go ahead, we will distribute these checks the following day. We will then include these bills for formal approval at the meeting of December 19. The State Statutes require that we process all bills within thirty days, otherwise, there is a mandatory interest charge that we are required to provide to each vendor. An extra claims payment has been provided in the past when this situation has occurred. � �. TO: William Burns, City Manager �• FROM: Jock Robertson, Community Development Director- DATE: December 9, 1988 REGARDING: Configuration of Council Bench in New Council Chamber David Kroos will present cross-section drawings comparing the Fridley preliminary design with the Council benches at Bloomington, Minnetonka and Champlin. These drawings will show the Fridley preliminary design has: 1. The Iowest possible Iedge (6 inchj with a TV monitor. 2. A lower platform for the bench than the other city chambers (6 inch vs. 12 inch). The combination is designed to meet the Council desires for individual TV monitors while maintaining maximum visibility to the audience. Based on these drawings, the Council can decide if and what type of mock-up they wish to review. JLR/dn M-88-370 � � MEMORANDUM - Clty ot F►tdl�y _ 6431 Unlv�rsity Av�nu• N.E. F�idl�y� Minn�sota SS43Z Phoee (812)671-3450 TO: FROM: DATE: SUBJECT: Offtce ot the City Manager Wiiliam W. Burns THE HONORABLE MAYOR AND CITY COUNCILn WILLIAM W. BURNS, CITY MANAGER �• �' �,• DECEMBER 6, 1988 FIVE YEAR CAPITAL IMPROVEMENTS PLANNING PROCESS I would like to begin a five year capital improvements planning process that eventually displays capital improvements in three different ways--chronologically, by function, and by budget or fund. In order to complete this process before the budgeting season arrives, I am suggesting the following schedule: 1. 2. 3. 4. Request to Department Managers: 12/30/89 Departmental preparation and review: 1/1/89 - 2/13/89 Public Works Director and City Manager review: 2/13/89 -3/27/89 Council review and conference session: 3/27/89 5. Public review: 3/28/89 - 4/16/89 s 6. 7. (If necessary) Further conference consideration: 5/8/89 Formal adoption by Council: 5/15/89 There are several assumptions on which this �Orocess is based. They are as follows: 1. The.capital improvements planning process should precede the budgeting process. Since Council will begin budget work sessions in late May, it makes sense to complete the capital improvement planning process by mid May. �L � -2- 2. In addition to a capital improvements planning process, I will also begin an operations planning process with Department Managers during the first quarter of 1989. I would expect the 1990 goals and objectives that have been prepared by the Departments will come before the Council at approximately the same time as they will be reviewing the capital improvements plan. 3. I am assuming that Parks capital improvements will be planned by the Recreation and Natural Resource Department and reviewed by the Parks and Recreation board. 4. I am also assuming that the HRA will review those capital improvement planning projects for which tax increment funding is planned. 5. I believe that several new funds will be created as a result of this process; e.g. a water construction fund. During the next few months, I will be working with Rick Pribyl to discuss the need for creation of additional capital funds and the rationale for doing it. 6. The capital improvements plan would include major repairs, reconstruction and new construction as these items relate to city streets, storm sewers, our water and sewer systems, parks, and other city lands and buildings. Please let me know your reactions to these plans. I will look forward to working with you on this very worthwhile project. WWS/la i