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05/17/1999 CONF MTG - 4651� � CRY OF FRIDLEY CITY COUNCIL CONFERENCE MEETING May 17,1999 — 7:00 p.m. Fridley Municipal Center Conference Room A 1. 1999 Council/Commissions Survey and 2000 Goals and Objectives. 2. Franchise Fee Proposal. 3. Lease for Proposed New Liquor Store. 4. Architectural Agreement with KKE for Liquor Store. 5. Public Access Request for Proposal. 6. Other Business. TO: WILLIAM W. BURNS, CITYMANAGER �,�� FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR SUBJECT: PROPOSED LIQUOR STORE AT THE NEW CUB FOODS SITE DATE: May 14,1999 As you are aware, we have been working on two items related to the opening of a new Liquor Warehouse location; a lease, and architect services. We have received a draft of the lease from Holiday. I have had the City Attorney review the document and there are a couple of items that we will be working through with the people at Holiday. I have attached the significant components of that lease. For the past 5 years we have been utilizing the services of KKE Architects. We are now at a point that we need to have an architect develop the schematic design and progress through the various phases to an end product. The space we are looking at in the Cub Foods Store (owned by Holiday Companies) is a space of 13,331 square feet along the side of Gander Mountain. We would need to design a space that is secure from all other tenants in the building. I have outlined some of the elements of the proposed agreement with the architect and have attached them also. In the past we have provided Council with a very high level summary proforma. I have included summary proforma information as part of this memo. Over the past couple of months the Liquor Retail Industry has been buzzing with the rumor that we are expanding our operation to include a store at the new Cub Foods location. Everyone that I have spoken with feels that this is one of the best locations that could have ever been chosen. It is very possible that the store could surpass our proj ections. RDP/me Holiday/Cub Foods Lease Cub Lease expires on 10/31/2013 We would be taking the site on an "as is" basis Signage - one sign on the east side of the building a 124 sq ft Sign Lease Cost Years Cost 1-5 $ 6.25 6-10 $ 7.19 11-15 $ 8.25 1 st Opt $ 9.51 2nd Op1 $ 10.94 3rd Opt $ 12.58 4th Opt $ 14.46 Space 13,331 13,331 13,331 13,331 13,331 13,331 13,331 Total $ 83,318.75 $ 95,849.89 $ 109,980.75 $ 126,777.81 $ 145,841.14 $ 167, 703.98 $ 192,766.26 Common Area Maintenance Charges would also be part of the lease cost. Holiday has also stated that our lease can be terminated by the loss of the grocery tenant Two outstanding issues on the lease: Insurance Limits Liquidated damage issues in the event of lease termination. 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Followir�g that, Jack and Barb will be present to describe how their Y2K goals fit in with your survey responses. � I have included a c�opy of the survey results. ; ;.� euo�er z000 City of F�idley GOALS and OBJECTIVES Fund pepartment pivtston 101 General Fund OT Recroation dc Natuca[ R� 70 Recreation PERFORMANCE COSTS/ BUDGET OBJECTIVES/ACTIVITIES MEASURES UNlTS EXPIANATION IMPACT OBJECTIVE #1 To improve the playground equipment at Communify Park, Creekridge Park, Flanery Park, Jubilee Park, and Locke Park by providing modern, safe, and accessibie play structures. ACTIVRIES 1 a. To estabiish the specifications for the March 2000 Absorbed playground equipment projects. 1 b. To advertise for bids on the playground April 2000 Absorbed equipment projects. 1 c. To provide for neighborhood input into Aprii 2000 Absorbed the selection process. 1 d. To work with vendor(s) on final design October 2000 $186,000 and oversee the installation of the play- ground equipment in the parks. OBJECTIVE #2 To provide gymnasium facilities for use at the Fridley Communiry Center. ACTIVITIES: 2a. To conduct focus groups and May-April 2000 Absorbed interviews with youth sports repTesenta- tives to determine facility needs. 2b. To survey aduits in the community to Dec 1999-Jan 2000 citizen survey Absorbed determine gymnasium faciliry needs for adult and family programs. 2c. To work with an architect to establish July 2000 preliminary design and cost estimates for est. $8,000 New Money a FCC gymnasium facility. 2d. To present costs and facility needs September 2000 Absotbed recommendations to the Parks and Recreation Commission for consideration. r; BUOGET 2000 Clly of F�Idley GOALS a�d OBJECTIVES Fund Oepartmeitt DiWslon 101 General Fund 07 Recrestion & Naturat Rea 70 Recteation PERFORMANCE COSTS/ BUDGET OBJECTtVES/ACTiVRIES MEASURES UNCfS EXPIANATION IMPACT OBJECTIVE #3: To assist Fridley residents in achieving greater personal growth. ACTiVRiES: 3a. To promote the fitness and exercise December 2000 Absorbed activities offered by the Recreation Depart- ment to the pubiic by emphasizing health and weilness benefits. 3b. To include health/weliness compo- December 2000 Absofied nent b all of the youth activity offerings. 3c. To provide a health/wetiness infor- December 2000 Absorbed mation page in the department seasonal brochures. 3d. To sponsor a Y2K Wellness Festival. May 2000 $2,000 New or donated money OBJECTIVE #4 To provide quality hard court surfaces in the neighborhood park system for tennis and basketball playing. ACTIVITIES: 4a. To work with the Parks and Recreation January 2000 Absorbed Commission to determine optimal numbers of tennis/basketball courts and needed locations for the community. 4b. To research the various options February 2000 Absorbed available for hard-court surfacing of tennis and basketball facilities. 4c. To determine costs associated with March 2000 Absorbed court surface altematives. 4d. To make a recommendation to the April 2000 Absorbed Parks & Recreation Commission for a sustainable system of hard court up- grading and maintenance. � BUOGET 2000 City of F�Idiey GOALS and OBJECTIVES Fund Qepertment p�tsi� 101 Ge�eral Fund Oi Recreation & Naturaf Res 70 Recreaticn PERFORMANCE COSTS! BUDGET OBJECTIVES/ACTIVITIES MEASURES UNCfS EXPLANATION IMPACT 4e. To incorporate the court surfacing May 2000 Absorbed financial needs into the Parks 5-Year Capital Improvement Program. OBJECTIVE #5: • To improve the West Moore lake Sand Dunes Park by establishing a long land use plan and implementation schedule. ' ACTIVITIES: Sa. To convene a joint meeting of the September 1999 Absorbed Fridley City Council and the Parks and Recreation Commission to discuss the potential and optimal uses of the Sand Dunes Park Sb. To research cost estimates for January 2000 Absorbed � alternative improvements to the park. 5c. To repoK findings to the Parks and March 2000 Absorbed Recreation Commission and the Fridley City Council for a decision on recommend- ed improvements. 5d. To incorporate the Sand Dunes plans April 2000 Absorbed into the Parks S-Year Capital Improvement Project. OBJECTIVE #6: - To expand the scope of Parks and Recreation information provided to Fridley residents on the City of Fridley Internet home page. ACTIVITIES: 6a. To expand the scope of Parks and March 2000 Absorbed Recreation information provided to Fridley residents on the City of Fridley Internet page. 6b. To catalog all park amenities as a July 2000 Absorbed database for the public access. BUDGET 2000 City of F�Idlsy GOALS and 08JECTIVES Fund Department Wvision 101 General Fund 07 RecreStbn: dc Natural Res 70 aecrsation PERFORMANCE COSTS/ BUDGET OBJECTIVES/ACTIVITIES MEASURES UNtTS EXPt.ANATION IMPACT 6c. To provide detailed information about July 2000 Abso►bed the Recreation and Natural Resource Department activities on the web page. 6d. To create program promotion December 2000 Absorbed strategies and customer/participant feed- back opportunities via the internet. 6e. To establish links to other Parks and December 2000 Absorbed Recreation related web sites on the Internet (i.e., National Recreation and Park Association, MN Recreation and Park Association, National Association of Interpretatlon, MN Youth Athletic Services). OBJECTIVE #7: To increase the opportunities for volun- teers and local organizations to participate in communiry service projects. ACTIVITIES: 7a. To promote the opportunities by December 20U0 Absorbed booking staff as speakers at school, church and business meetings or functions. 7b. To create four special service project December 2000 Absorbed events for the voiunteers to assist senior citizens in the community (i.e., �ake-a-thon, mini paint-a-thon, spring and fall clean- ups). OBJECTIVE #8: To develop a Fridley Senior Program Web site to provide information on programs and service. ACTIVITIES: 8a. To determine pertinent information to April 2000 Absorbed be included on the Fridley Senior Program web site. 8b. To train seniors at the FCC Computer July 2000 Absorbed Lab to develop and maintain the site with current data. BUDGET 2000 City of F�idley GOALS and OBJECTIVES Fund pepertment pi�lon 101 General Fund OT Recr+estton � Nataral Res 70 Recre�Uon PERFORMaNCE COSTS/ BUDGET OBJECtIVES/ACTIVRIES MEASURES UNITS EXPLANaTiON IMPACT 8c. To establish the Senior Program site September 2000 $350-$500 New Money on the Internet. 8d. To update the site on a monthly basis. December 2000 Absorbed OBJECTIVE #9: To improve and expand the programs and services for the Fridiey seniors. ACTIVITIES: 9a. To conduct a Fridley senior participant March 2000 TBD satisfaction and interest survey to deter- mine program direction. 9b. To conduct focus groups made up of May 2000 Absorbed representatives from different interest areas (i.e., young seniors 50-65 yrs old, homebound service groups) to determine needs and interests. 9c. To work with the Senior Advisory Board September 2000 Absorbed and the Senior Program Committee to develop and/or revise program offerings based on survey and focus group infor- mation. OBJECTIVE #10: . To improve the computerskiils of the seniors by using the new technology resources at the Fridley Community Center. ACTIVITIES: 10a. To train 75 seniors in basic computer September 2000 Absorbed skilis. 10b. To train 50 seniors in Intemet use September 2000 Absorbed and e-mail skills. 10c. To train 10 volunteers to serve as December 2000 Absorbed assistants in a Senior Computer Lab. OBJECTIVE #11: To increase the participation by those who live or work in Fridley in the DepartmenYs athletic program. ACTIVITIES: 11 a. To develop a promotional brochure March 2000 Absorbed for each of the adult sports offered through the Recreation and Natural Resource De artment BUDGET 2000 CNy of F�idley GOALS and OBJECTIVES Fund Deparlmerrt Divtsfon 101 General Fu�d � OT Recroatbn & Naturai Res TQ Recreation PERFORMANCE COSTS/ BUDGET OBJECTIVES/ACTIVRIES MEASURES UNITS EXPLANATION IMPACT 11 b. To regularly promote athletic league December 2000 Absorbed opportunities in the City Newsletter, Recreation Department seasonal brochures and the locai newspaper. 11 c. To contact ali major Fridley employ- April 2000 Absorbed ers topromote the opportunities for athietic participation. 11 d. To work with the ERC to promote Aprii 2000 Absorbed participation of an employee's team in the athietic programs. OBJECTIVE #12: To promote the teen program among at-risk youth. ACTIVITIES: March 2000 �ga�ed 12a. To obtain referrals from the Police Departme�t Youth Workers and school district staff members. 12b. To make contact with youth at home April 2000 Absorbed or at school to discuss positive recreation choices. 12c. To arrange for registration forms April 2000 Absorbed to be completed by parents/guardians. 12d. To discuss payment options for Aprii 2000 Absorbed those families who cannot afford the fuU program cost. 12e. To follow-up with the youth, their December 2000 Absorbed family and the referring party. OBJECTIVE #13: To increase the opportunities for youth to � complete communiry service (at the Zone Underground and at other community based programs). ACTIVITIES: 13a. To establish an on-going relation- January 2000 Absorbed ship with Anoka Counry to get referrals. 13b. To make contact with youth to May 2000 Absarbed arrange times and tasks for community service. euo�er 2000 ctty ot F�dley GOALS and 08JECTIVES Fund pepertmeM p(�� 101 General Fund OT Recreation & Natarai Res 7Q Recreation PERFORMANCE COSTS/ BUDGET OBJECTIVES/ACTIVITIES MEASURES UNITS EXPLANATION IMPACT 13c. To create an open-ended "task" list Apri12000 Absorbed for youth needing to complete community S@NIC@. OBJECTIVE #14: To improve the adult softball program by improving the scorekeeping operation. ACTIVITIES: 14a. To research the options available for January 2000 Absorbed on-the-field operation of the scoreboard consoles. 14b. To determine costs for converting February 2000 Absorbed the existing scoreboard system to an on-the-field operation. 14a To install the new scoreboard April 2000 TBD operation systems at the four Community Park fields. 14d. To use the participant operated May 2000 Absorbed scorekeeping system wfth the adult � softball program. euo�Er z000 City of F�idley GOALS and OBJECTIVES Fund DepertmaM p(visia4 101 Generai Fund O7 Rec�aflon & Natueat Res 7t Nai�ralist PERFORMANCE COSTS! 81JDGET OBJECTIVESlACTIVRIES MEASURES UNITS E7fPUkNATION IMPACT OBJECTIVE #1 To enhance participant use of Nature Center facilities by improving the signage. ACTIVITIES 1 a. To design, purchase and instail August 2000 TBD TBD improved directionai and informational signs on the 3 miles of trails at Springbrook Nature Center. 1 b. To design, purchase and install _ August 2000 TBD TBD Nature Center entrance signs that convey � appropriate information regarding security, safety issues, park poticies, and program activities. 1 c. To design, purchase and install _ August 2000 TBD TB� external signs for the interpretive building regarding hours of operation, facility locations, and program information. OBJECTIVE #2: To upgrade Springbrook's Interpretive Building's handicap accessibility. ACTIVITIES: 2a. To install electronic door opening August 2000 TBD TBD access to the building's main enirance doors. 2b. To install restroom stall doors to meet August 2000 TBD TBD ADA requirements. OBJECTIVE #3: To prepare staff training videos for on- going programs at Springbrook Nature Center. ACTIVITIES: 3a. To videotape on-going activities and June 2000 Absorbed programs. Absorbed 3b. To have videotapes edited and August 2000 formatted into staff training resources. BUDGET 2000 City of F�idley GOALS and OBJECTIVES Fu�d DePertme�tt Divisi°� 101 General Fund OT Recreation � Natural Res 71 Naturalist PERFORMANCE COSTS! BUDGET OBJECTIVESiACTiVIT1ES MEASURES UNRS EXPLANATION IMPACT 3c. To purchase VCR and monitor for use August 2000 �8� with training of paR-time staff. OBJECTIVE �4: To develop a master design plan for the 7 acre entrance area at Springbrook Nature Center. ACTIVITIES: 4a. To work in conjunction with the June 2000 Absorbed Springbrook Nature Center Foundation to develop an entrance area design that fits within the overall mission of the Nature Center. . - 4b. To work with the Springbrook Nature August 2000 �' �. Absorbed Center Foundation to develop a funding strategy to accomplish the work in the design. 4c. To seek funding for the development of December 2000 Absorbed the Nature Center entrance area design plan. I MEMORANDUM DEVELOPMENT DIRECTOR DATE: May 14, 1999 TO: William W. Burns, City Manager �. �f � FROM: Barbara Dacy, Community Development Director SUBJECT: 2000 Community Development Department Goals and Objectives Impact of Medtronic Project The Medtronic project will have the most impact on the City of Fridley's future more than any other before it. The project will not only change the Fridley i-694 corridor but wiil also affect development in the north metro area. Three developers have aiready contacted me in search of sites for hotel and retail development. Their comments are telling: "The City hit a home run for the community"; "this will change the City's image'; "the city needs to jump on this opportunify". The City of New Brighton is redeveloping the parcels in the I-35W and I-694 interchange and is also exploring hotel opportunities. I would be professionally irresponsible if I did not recommend to the Council a proactive approach to deal with the multitude of impacts from the Medtronic project. The impacts 1 am speaking of include, but are not limited to: 1) 2) 3) Land use: • Initially there will be a demand for hotel, restaurant, and retail space. • Where is the best place to start? • What will the market support in the future? • How does the market relate to the community's goals? • What are the community's goals? • Does the City want to encourage redevelopment for a Super 8 hotel or a Radisson? • How does the City want to influence development? Housing: • Existing housing will need to be demolished to make way for new land uses. • How will the City replace fost units? • How will it affect the City's livable community benchmarks? • What about "move-up" housing to retain or attract households that want higher value homes? Schools: • What.impact will redevelopment projects have on the school districts? 2000 Community Development Department Goals and Objectives Page 2 May 14, 1999 . Will there be more kids or less kids? 4) Infrastructure: • TH 65 lane widening project needs to be addressed. • Sewer line upgrade needs to be completed by Phase IL • What will the spillover effects of redeve�opment require of fire and police services? • What about transit services including light rail and the Northstar Corridor? • Will there be more demands on parks and bikeway/walkway impacts 5) SociaL• . Will there be more or less demand for cultural activities/amenities? 6) Technology Impacts: . What should the City be doing, if anything, regarding technological infrastructure such as fiber optic services? In short, I recommend that the City be prepared to respond to the multitude of impacts that the Medtronic project will generate. The Comprehensive Plan will address some of the above issues in general, but I recommend that a study be completed solely for the purpose of addressing the impacts from the project. Elements of the study would, at minimum, include a _ market analysis, a land use component, and a housing component. The scope and cost of the study has yet to be determined, but because of the redevelopment implications, the Housing and F�edevelopment Authority may be more appropriate to fund the study. I do recommend however that the Council endorse this concept, and request that staff initiate the study this summer. Council/Commission Survev Topics The topics in the Council/Commission Survey which affect the Community Development Department are: • Impact of the Medtronic project • Timing of Gateway East project • Housing Rehabilitation Programs • Scattered Site Acquisition Programs • Apartment Rehab Program . Yard Waste Site • Campers/trailers/boat storage • Replacement affordable housing The department's goals and objectives reflect all of the above activities in the upcoming 18 months. There seemed to be general agreement to push ahead with Gateway East and the Scattered Site program., and to keep the yard waste site open. There was a general feeling among the Council to adopt a wait and see approach on studying the impacts of the Medtronic development, while the Commission members seemed to support moving ahead with a separate study. There was less agreement on the remaining issues. 2000 Community Development Department Goals and Objectives Page 3 May 14, 1999 Department Priorities The top three department priorities are as follows in the order that they appear: 1. " Define scope and cost of impact study of Medtronic project, and initiate analysis this year 2. Complete the Comprehensive Plan process 3. Keep pushing ahead with Gateway East project and initiate salvage yard redevelopment process The remaining objectives include: 1. Keep pushing ahead with housing rehab and scattered site programs with a careful eye on the pooling issue 2. Initiate process to analyze the apartment rehab program 3. Initiate zoning text amendments on the following topics: • Outdoor display (summer of 1999) � • Survey questions regarding camper/trailer/boat issues (fall 1999) � Initiate text amendment process after survey results • Relax front yard setbacks for home additions • Minimum lot area analysis in residential and commercial areas � Septic system maintenance requirements (1995 Met Council requirement) 4. Continue Systematic Code Enforcement Program 5. Initiate optical imaging of land use files, building plans, a�d address files. Budqet Implications ` The 2000 budget will contain the required funding to complete the Comprehensive Plan. It is hoped that the bulk of the plan can be prepared the latter part of 1999, and the Council adopt the plan in the year 2000. The Medtronic Development because of its size, will require significant amount of time and < attention by the Building Official, Ron Julkowski. As a result the building division budget will contain a request for additional funds for contract inspector assistance. About $10,000 is authorized in the 1999 budget for part-time help to assist the department in completing optical imaging of land use applications, building plans, building permits and, inspection slips in the contents of the address files. Because of the problems associated with the former provider of the optical imaging software, new software is now being evaluated by �6ty staff. Continuation of this part-time help will be requested in the 1999 budget. Because of the volume of the permit activity in the last two-three years, staff is now e�aluaf��g � variety of software applications to automate the permit and inspection tracking systern, wh��i� �� now being used by Mary Hintz. The cost of software in this area has reduced signific,�ntly ��r the last nine years and staff is hopeful to purchase software which would cost less th�n $10,000. 2000 Community Development Department Goals and Objectives Page 4 May 14, 1999 Finally, the Planning budget will also request a summer intern to assist with the Code Enforcement program ($10,000). The 1999 Community Development Block Grant application did include $10,000 to be allocated towards Code Enforcement which would help to retire the cost for Lori Skotterud. A similar amount is being proposed for the year 2000 budget. Summarv I look forward to discussing these issues with Council on Monday night. BD\jt Attachments M-99-121 ' BUDGET 2000 City of Fridley I±Aw� e� __ ' ��'��""__ _ BUDGET 2000 City of Fridley GOALS and OBJECTIVES Fund pepartmenf Div�siort 262, 265, 267, 501 08 Gommunity >Oevelopment < ' HRA l tiousing ; PERFORMANCE ! `:COSTSI F3UDGET . ! OBJEGTIVES/ACTIVITIES :' MEASURES UNITS :.: EXPLANFATLON > iM ..P:..ACT OBJEGTIVE #1 Complete Gateway East Project. ACTIVITIES 1a. Draft RFP to developers to solicit Aug. 1999 N/A $1,000 HRA proposals on town home project. 1 b. Select developer for project. Oct. 1999 N/A None N/A 1 c. Complete demolition of any remain- Oct. - Nov. 1999 N/A $50,000 HRA structures. 1d. Conduct neighborhood meeting ro Jan. 2000 N/A None N/A review proposed project. 1e. Developer to finalize plans and site Jan. - Mar. 2000 N/A None Private. designs. Developer 1f. Complete negotiations on a develop- Apc. 2000 N/A None HRA ment agreement with HRA. 1 g. Developer to submit application for May 2000 N/A None Private land use approvals. Developer 1 h. Intiate site work, including grading, Jun. 2000 N/A $190,000 HRA road closure/realignment and install- ation of public improvements. 1 i. Developer to initiate construction. Jun. - Jly. 2000 N/A None Private Developer ' � BUDGET 2000 City of Fridley r_nw� � __� ..., .....�....__ BUDGET 2000 City of Fridley GOALS and OBJECTIVES FuncE:: . D:epartme.nt Divisian 262, 265, 26T, 501 : 08 Corrtrnun�tp <Developmert� HRA / Hou�mg PERFQRMAHCE > COSTS! BUDGE'� i OBJECTtVES/�CT'IV(TIES IUIEASLiRES l]NITS EXPf..r4I�ATION . IMPACT OBJECTIVE #3 Develop strategy to fund housing rehab- ilitation programs. ACTIVITIES 3a. Evaluate interest-rate buy down pro- Jan. 2000 N/A None Absorbed gram. � 3b. Evaluate sale of existing HRA loan Jan. 2000 N/A : None Absorbed portfolio. 3c. Evaluate using HOME or CDBG Jan. 2000 N/A None Absorbed monies for low-interest loan program. 3d. Apply to MHFA or Met Council for Jan. - Apr. 2000 N/A None Absorbed rehab funding. 3e. Consider special legislation to Jan. - Mar. 2000 N/A $5,000 - HRA regarding TIF (e.g. pooling restrictions, penalties, etc.) FE�n.d:::::»::>:'>,:::»::::::::;<:><:>:>:::<:>::>:< :>:>i:»::::;:::i::;::::»:::><:::>::::: :::>::>::::> 1:C�� faiiR6F81 �ur�d ` OB.�ECTIVES/ACTIVtTI�$ Objective #1 To adopt a 2010 Comprehensive Plan Activities , 1a. Request extension from Met Council 1b. Draft plan 1c. Approve Plan and submit to Met Council Obective #2 To educate residents and businesses regarding code enforcement program and issues. ACTIVITIES 2a Prepare educational materials 2b. Conduct seminar with businesses 2c. Enter code enforcement data into complaint tracking system 2d. Prepare quarterly articles and reports in newsletter 2e.' Prepare reports for Council OBJECTIVE #3 � Evaluate Ordinances and Pursue Required Amendments , ACTIVITIES 3a Septic System ordinance amendment 3b. Outdoor Display in Commercial Zoning Districts BUDGET 2000 City of Fridley GOALS and OBJECTIVES Jun-99 Jun-Dec 99 Jan-00 Apr-00 May-00 June-99 through 2000 Mar-00 Ongoing Aug-99 $35,000 remains in existing contract $500 None Publication Publication $35, 000 requested in new money for storm sewer and human services chapter New money Absorbed Absorbed Absorbed �bs��6�� _.;,;:,-� . 3c. Front yard setback for home additions 3d. CamperslTrailers/Boat storage 3e. Lot area requirements 3f. Home occupation OBJECTIVE #4 To create developable industrial sites and job opportunities by removing salvage/ automobile recycling yards. 4a. Compile parcel and cost information 4b. Analyze financial impact 4c. Evaluate need for soil/groundwater remediation 4d. Initiate acquisition, demolition, and relocation 4e. Conduct developer RFP process 4f. Complete land use application review To improve public information documents for distribution 5a. Purchase Corel Draw 8 software 5b. Prepare/udpdate public handouts regarding zoning requirements BUDGET 2000 City of Fridley GOALS and OBJECTIVES Aug-99 After survey results Mar-00 Dec-00 Acquire salvage yards in Onan TIF Dist Jul-99 Sep-99 Oct-99 Apr-00 May-00 Jan-00 May-00 Mar-00 Aug-99 Pubiication Absorbed Publication Absorbed Publication Absorbed Publication Absorbed None Absorbed None Absorbed File grant apps To be Apply to DTED determined or Petro Board HRA Budget To be determined None Absorbed None Absorbed $800/unit $800 None Absorbed Fand %.;;;:::;,::<.;::::;. _ 23T aoftd lA/�st� Abatement ,. OBJECTIVES/ACTtVtT1ES: OBJECTIVE #1 Achieve 100°.6 of County Recycling Goat by increasing public education on recycling ACTIVITIES 1a. Support BFI's Mobius curriculum in Fridley area schools 1b. Place recycling information in each issue o1 the City Newsletter 1c. Focus on County-designated recycling material in atl education efforts, as applicable 1d. Ensure recycling compliance at all apartment buildings in city 1e. Attend property manager's meetings, as needed BUDGET 2000 City of Fridley GOALS and OBJECTIVES ,487 tons Send out letters to each school district in Fridley by April, 2000 Have a minimum of fow articles printed per year Meet County contract , requirements for 2000 Inspect all apartment locations at least once per year Staff conducts presentation(s) if requested or if there are problems 1f. Conduct at least two public education Satisfy County demonstrations per year on recycling/waste requirements for the year reduction 2000 1g. Develop cable tv programs on recycling as Minimum 2 productions possible during the year 1 h. Maintain a 24-hour recycling hotline phone Ongoing number that wiU be listed in the Blue Pages 1 i. Promote City-owned buildings recycling All employees are aware services to City employees on a regular basis of what can be recycled in City Buildings 1j. Ensure that all new residents receive Ongoing recycling information 1k. Utilize all mediums of promotion as Ongoing applicable for pubtic education - like block captain newsletter, senior newsletter, community bulletin board, eta ' 11. Host a recycling display at annual One event - March 2000 remodeling fair 1 m. Maintaing current recycling information on Ongoing City Web Site � I �� 237-0000 SWAP None, program is Absorbec funded by BFI $4,000 for an SCOREI additional gyyqp Environmental Section in newsletter $500 per year in SCORE/ paper/RISO printer SWAP lease None Absorbed None AbsorhP� $500 for handouts and prizes $50 for props Investigating cost None None (part of , Administration tasksj None � SCORE/ SWAP SCORE/ SWAP SCORE/SWA D $100 in printing and SCOR�/ display needs SWAP BUDGET 2000 City of Fridley GOALS and OBJECTIVES Fund , ; L?epa�fineht Dirtis�o�i ;: , ,. . .: . ;. >: .. ;: :. .. ,.: .:.. : . :.:...:.: ,. ;;::: .. 00 ;:?:>::::>':;::>::;::;:` '::;..:;.:::> :::: :: `:;:;:': :::»>::'><::>::::::>:::::::<::::: Z37' �o1�d,::lNaste»Abatement .. : :: ,:...;:. ;:; ;.. :.::;;:: t1 :... . : >..;.::.. ... : ;:.. . . : . . :. . ____ .._ __ _ ___ _ _ . _ _ ,__ .. . , , _, PERFQRMANCE �C�STS� SuDGET : ,; , �.;: , O.BJECTIVES/ACT[VITlE3 ; M�ASURES :; ;;�l1t[TS ;: EXPLp;t�AT1�N �1VIP1A�7`: ::> 1n. Maintain current information on FIL line Ongoing None Absorbed 10. Monitor performance of curbside recycling Have system up to date None Absorbed service provider through complaint tracking and working effectively system. by Feb. 2000 Obiective #2 Ensure that Frildey residents have access to a waste management system that maximizes recycling yet is cost effective 2a. Complete a study of current waste Ongoing Investigatin cost Absorbed management system 2b. Use citizen survey to evaluate citizen Complete by Dec., 2000 Absorbed habits Obiective #3 Protect ground water and surtace water quaAty in the City of Fridley 3a. Consider application for a Phase II Clean Complete application by Amount to be Request funds Water Partnership Grant for Springbrook due date determined by from SCWMO Subwatershed SCWMO 3b. Monitor Wellhead Protection Plan Process Ongoing � 3c. Conduct public education regarding storm One mailing during year $5,000 Request funds water management combined with cable tv from SCWMO 237-0000 SWAP 2000 i � . OBJECTIVE #1 As an effort to achieve County recycling goals, coilect problem materiais at 8 drop off days/year in a cost effective manner. BUDGET 2000 City of Fridley GOALS and OBJECTIVES 1a. Collect materials that count towards county Cotlect at least 30 tons goals. of material 1 b. Inform public of drop off dates. Use City Newsletter, community billboard, cable tv, and notices to garbage haulers at least once per year to promote collections 1c. Continually evaluate the economical feasibility of collecting additional items. Evaluate possibility of adding at least two different items 237-2900 SWAP 2000 $10, 000 None None SWAP/ SCORE Absorbed Absorbed � � � � William W. Burns � M E M O R A N D l! M City Manager CffY OF FRIDLEY Memo to : The Mayor and Council From: William W. Burns, City Manager �=�1 � Subject: Franchise Fee Proposal Date: May 12,1999 At Monday's conference meeting, I will propose that we begin the process of establishing franchise fees for Minnegasco and NSP as defined in the attached ordinance. The main characteristics of the fee are as follows: • The franchise fee is essentially a sales tax on utility bills that will be charged to the two utilities and passed on to their customers. • The fee will appear on monthly utility bills as a 3% charge to residential customers and as a flat rate charge to commercia�ndustrial customers (see Attachment #1). • For NSP bills, it will mean a payment of about $1.29 per month for the average user of electricity. • For Minnegasco bills, it will mean $1. 73 per month for the average user of natural gas. • The total cost to residential users will be about $36 per year. � . • Those who have high utility bills will pay more; those who have low utility bills will pay less. • Those who have household income below federally defined poverty levels will have an opportunity to obtain a franchise fee rebate. • It will generate about $716,000 annually in new revenue for the City. There are several reasons why we are proposing this fee. In general, we are proposing it to pay for existing programs and services that are not covered by current sources of revenue. Another way of saying this is that we are trying to avoid further erosion of our fund balances. We are also proposing the franchise fees in order to offset the impacts of class rate changes on local property taxes and other state legislative initiatives that have limited our ability to raise property taxes and reduced our intergovernmental transfers from the state. The franchise fees together with increased revenues from our liquor operations are also being sought to give us more flexibility to respond to community needs. In 4 of the last 6 years, we have spent more for General Fund expenditures than we have taken in from revenue sources. While we did break even in 1998, this year we are projected to spend $1,304,682 more than we will receive from all General Fund revenue sources. All of this money is derived from fund balances. Attachment #2 reveals the relationship between General Fund revenues and expenditures. Attachment #3 shows the condition of our General Fund Reserves and other unreserved fund balances. In addition to the broader picture, there are specific areas where we have been spending without offsetting revenues. These are all new expenditures that we have taken on within the last few years as our � [S response to what we see as Fridley's needs. These expenditures include the following: 1. Three new police officers were added in 1994. The current cost of those three officers is about $195,000 per year for both salary and benefits. 2. Two new police officers were added in 1999 at a cost of $83, 765. While $50,000 of this amount is funded through grants, we will assume the entire cost of these officers beginning in 2002. By that time cost of living and merit step increases will have raised the cost of these two employees to approximately �105,000. 3. In addition, the Public Safety Director has asked for another grant funded police officer to work principally in our school system for the year 2000. Again, we will receive a substantial portion of this person's salary from grants through the year 2003. After that, the $SS,000 salary and benefits will be ours to fund. 4. Project Safety Net was added in 1994. The current, non-reimbursed cost for Kevin Thomas and other Police Department employees is $50,000 to $SS,000. In addition to that,1999 staff and program costs for our Youth Center are $75,655 in 1999. 5. Our rental housing program was introduced in 1995. While we will spend �93,182, to operate this program in 1999, only $42,975 is projected to be recouped from license fees. This leaves $50,207 to be paid for from General Fund revenues. 6. We built the FCC in 1997 and 1998. �n 1999, we will spend $52,144 to operate this facility. We will also spend another $1,683 as our share of the operating costs for the Hayes Gymnasium. 3 7. We have been spending between �10,000 and $33,000 per year since 1996 to remove damaged tree limbs from private property in Fridley. We are budgeting $20,0000 for this purpose in 2000. 8. This year we restored corridor maintenance to our budgez While we budgeted �20,000, we expect to spend another $18,000 for equipment rental for this purpose. 9. We are also facing ongoing costs for additional assessing personnel and code enforcement personnel, and we expect the Finance Department to ask that an existing part-time information systems position be upgraded to a full-time position in the year 2000. As we get into an increasing number of new computer applications, the demand for help from IS staff far exceeds the supply. 10. We have also faced some significant one-time or start up costs in 1999. We expect to spend about $300,000 to prepare for Y2K. Of this amount �21,000 Will be taken from General Fund resources. We have also spent $22,000 to provide equipment and software for the paperless agenda process, and another $50,000 for complaint tracking. In addition, we will spend at least $102,000 for the amendment and publication of our comprehensive plan. This amount includes the visioning process. As we've spent more, we've seen the state legislature cut back on their commitment to LGA and HACA. We've also seen them apply their sales tax to our purchases, establish levy limits, and restructure the property tax system in a manner that reduces Fridley's tax capacity by more than 12%. In 1999 we are likely to get legislation that limits the amount of new value that we can use for establishing the taxable value of property. Moreover, they have exacted severe penalties for the use o�` Tax Increment Financing that, at least potentially, can impact our future local government aia� 4 � As we look into the future, we see many needs for Fridley. As our streets get older, we hope to continue our annual street reconstruction programs. These have been costing about $500,000 per year. In addition to that, we've been spending another $200,000 per year on seal coating and slurry sealing. In 1999, we are spending $2.2 million on the Riverview Heights project. While some of this cost is offset by state, metro system aid, a significant portion is funded through property owner assessments and from City resources. Of the $2.2 million that we will spend on the Riverview Heights project, only �500,000 will be reimbursed from state aid. In addition to needing funding for City streets, we will also continue to face growing needs for both youth and adult recreational programs. We are badly in need of additional gymnasium space for both o�'these groups. Funding from new revenue sources may make it possible to fulfill this need. We are also very likely to see continued pressures for improved street lighting, better maintenance of our three major highway corridors and increasing expenditures for a growing senior population. As we see the Medtronic project materialize and the departure of tlnited Defense, we will also see increasing pressures for improved fire protection in Fridley. While the franchise fees will not pay for all of any of this, it will put us in a much better position to address these issues as they materialize. The last time that we discussed franchise fees, you were very concerned with what other cities were doing in this regard. There are four other cities in this area that have franchise fees. Blaine has negotiated a flat rate for different classes of customers including the residential class. The other cities charge a percentage of the customer's monthly bill for different customer categories. Our fees would use a percentage for residential customers and a flat rate for various categories of commercia�ndustrial customers. 5 In order to compare rates, I have looked at the rates that would be charged by Fridley and the four other cities for their NSP resident�al customers. I've used NSP's number for the average monthly bil� Thai n umber is $43.31. Blaine........................$ . 70 Coon Rapids ................ $1. 73 Fridley ....................... $1.29 Minneapolis ................ $ 2.17 Mounds View ............... $1.08 Fritz Knaak has prepared a franchise fee ordinance (see Attachment #4). Our plan is to use the time between now and July 12 to discuss the proposed fees with individuals and organizations within Fridley. We would also propose to place an article in our June newsletter as well as prepare a brochure similar to Attachment #5. Then on July 12, we would hold a public hearing on the ordinance, followed by a first reading on July 26 and a second and final reading on August 9. Thank you for reviewing this lengthy memo. I think I got carried away. 6 Minnepasco Residential @ 3% Firm A Firm B Firm C SVDF A SVDF B LVD Revenues Expenditures Excess *Unaudited Attachment #1 Fee Structure $ 1.73/month $ .87/month $ 2.82/month $ 13.18/month $ 26.59/month $147.50/month $150.00/month NSP Residential @ 3% Small C/IND Small C/ID Large C/I Secondary Large C/I Primary Attachment #2 General Fund External Revenues vs. Expenditures 1994 1995 - 1996 1997 8,746,668 8,942,118 9,595,587 9,882,031 9,037,704 9,647,338 9,479,381 10,030,524 (291,036) (705,220) 116,206 (727,882) **Projected Attachment #3 Fund Balances 1994-1999 Unreserved $ 1.29/month $ 4.00/month $ 10.00/month $ 93.00/month $150.00/month 1998* 10,105,852 10,064,639 41,213 199J'* 9,770,254 11,074,936 (1,304,682) Unreserved Discretionary Fund Balances & Retained Year General Fund Fund Balances Earnings - All Funds 1994 6,803,230 22,998,929 38,961,904 1995 6,566,390 23,303,588 37,372,126 1996 6,955,626 24,316,159 38,643,141 1997 7,042,469 21,924,924 39,498,218 1998 7,456,584' 21,423,664'' 40,454,254' 1999 6,569,801"* 17,492,266"" 37,502,559*" *Unaudited **Proiected ,. Attachment #4 ORDINANCE NO. AN ORDINANCE OF THE CITY OF FRIDLEY, MINNESOTA, AMENDING THE CITY CODE TO INCLUDE A NEW CHAPTER 409, ENTITLED "FRANCHISE FEES" The City Council of the City of Fridley does ordain as follows: SECTION 409.01. PURPOSE The Fridley City Council has determined that it is in the best interest of the City to impose an equivalent franchise fee on all entities providing electric and gas service pursuant to franchise within the City in accordance with the franchise agreement entered between the City and each such energy supplier. The franchise fee is paid as full compensation for the rights to transmit and distribute electric or gas energy for public or private use within and through the limits of the City as permitted by the respective franchise of each energy supplier. The equivalent fee was determined in advance by the City based on each energy suppliers' estimated Gross Revenues so that the fee paid by one Customer Classification is in all material respects the equivalent, based on a percentage of the estimated Gross Revenues for the Customer Classification, of the fee paid by each similar Customer Classification(s) of the other energy suppliers. SECTION 409.02. FEE SCHEDULES 1. Minnegasco Company Gas Service Fee Schedule. A franchise fee is hereby imposed on Minnegasco Company for its gas franchise granted by the City in the following amounts and as defined in Section 7 of the parties' Franchise Agreement. Customer Classification Residential Firm A Firm B Firm C SVDF A SVDF B LVD Amount per Month 3% of customer's monthly gas bill $0.87 per month 2.82 per month 13.18 per month 26.59 per month 147.50 per month 150.00 per month 2. Northern States Power Company Electric Service Fee Schedule. A franchise fee is hereby imposed on Northern States Power Company for its electric franchise granted by the City in the following amounts and as defined in Section 9 of the parties' Franchise Agreement: Customer Classification Residential Small C/IND Small C/ID Large GI Secondary Large C/I Primary SECTION 409.03. PAYMENT Amount per Month 3% of customer's monthly gas bill $1.90 per month 12.50 per month 93.00 per month 150.00 per month Said franchise fee shall be payable to the City quarterly. The payment shall be due the last business day of the month following the preceding quarter of the calendar year and shall be based on the electric or gas set-vice provided for the preceding quarter of the calendar year. Each energy supplier shall furnish with each payment a statement of the amounts collected by customer classification for the period on which the payment was based. Each energy supplier shall permit the City and its representative free access to supplier records for the purpose of verifying such statements. SECTION 409.04. REDUCED OR REBATED RESIDENTIAL FEE FOR ECONOMIC HARDSHIP The City may, in the separate ordinance imposing the fee, provide for either a reduced rate or rebate program for residential homeowners suffering from economic hardship. The definition of "economic hardship" shall be determined annually by the City based upon household income and the Federal Poverty Guidelines. In the event of a rebate program under circumstances where an economic hardship exists, the amount paid by a qualifying household shall be rebated by the City to the household within a reasonable amount of time after the end of the year, or such other time as the City, by way of the separate ordinance, shall, in its discretion, provide. SECTION 409.05. ENFORCEMENT Any dispute, including enforcement of a default regarding this Ordinance, shall be resolved in accordance with dispute resolution provisions of each energy supplier's Franchise Agreement. SECTION 409.06. EFFECTIVE DATE This Ordinance shall become effective 60 days after notice enclosing the adopted ordinance has been served on each energy supplier by certified mail. Collection of said fees from customers shall commence with the beginning cycle of supplier's next full billing month following the expiration of the 60-day period. 2 .• PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS DAY OF ,1999. ATTEST: DEBRA A. SKOGEN — CITY CLERK Public Hearing: First Reading: Second Reading: Publication: ADOPTED ON THE DAY OF ATTEST: DAY OF NANCY J. 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O � � � � cn O Q- � � � � u�—�� - � N � fD fD � O � tfl��-� � � cn N C�pZ� � � y (D (�D � a1 � � � (rJ �. 0 \ - � N n (aD � "~ � � O �•(a 'a - �p - S � Q � � O (�p � !D � .� � fl. � � � � � � �7 ^' c � � r: � � fD O C (D� tp � � _ � � � (D � � O n — O fD f) N Q � C � N �G a' � ? (D �G � O 3 • . _»� � � ? �, v� (D � a � N y fD Q (D "�' (D � N•'' < N � y G.'_�'. 3 � � � � � O a� � � � � � � � � �G � � � � Z c �V �D Q � � Q. � �� y � . . . � � D � � D � � -i = omQ.°�an�m•� � -h - � -, � � -� -� m �,or;�woao�v� c �. i �' �° � � c�i � ,��,cu.� �� o �� ?� �' m � � _ �: � m �, �n �� a� ��. m°' cQm �•� � o- o �° fD � � � � o 0 m� oN �o S1 � ,.C.F .fD.► �p ? Q (D ? � N '� N C � � � C � O .�-. fD � � � � C�i .��-. � o' � � O � N � f�D � Q (D y`�fD3��° . �o�,�oo c� � < n. � �c�m w o '� � c a�i � �r.•� X �ao ��a rn ,< � c��u Q. 5' �n c �, _�► � n � � (D O � �1 N � .�-► � � (7 � � � � N ca � � a 3 � � a � cQ � � � � � o�,�,��n ?� � c�? fD • Q ,.� (D y. N = p . O .. • � (�D � � V � � � � n N�,Q � �' � � aQ� � � � � �� '�o O � O O C� � �rno -„ �?� n� � °c � �, TO: WILLIAM W. BURNS, CITYMANAGER �,�� FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR SUBJECT: PROPOSED LIQUOR STORE AT THE NEW CUB FOODS SITE DATE: May 14,1999 As you are aware, we have been working on two items related to the opening of a new Liquor Warehouse location; a lease, and architect services. We have received a draft of the lease &om Holiday. I have had the City Attorney review the document and there are a couple of items that we will be working through with the people at Holiday. I have attached the significant components of that lease. For the past 5 years we have been utilizing the services of KKE Architects. We are now at a point that we need to have an architect develop the schematic design and progress through the various phases to an end product. The space we are looking at in the Cub Foods Store (owned by Holiday Companies) is a space of 13,331 square feet along the side of Gander Mountain. We would need to design a space that is secure from all other tenants in the building. I have outlined some of the elements of the proposed agreement with the architect and have attached them also. In the past we have provided Council with a very high level summary proforma. I have included summary proforma information as part of this memo. Over the past couple of months the Liquor Retail Industry has been buzzing with the rumor that we are expanding our operation to include a store at the new Cub Foods location. Everyone that I have spoken with feels that this is one of the best locations that could have ever been chosen. It is very possible that the store could surpass our proj ections. RDP/me r ' Holiday/Cub Foods Lease Cub Lease expires on 10/31 /2013 We would be taking the site on an "as is" basis Signage - one sign on the east side of the building a 124 sq ft Sign Lease Cost Years 1-5 6-10 11-15 1 st Opt 2nd Op1 3rd Opt 4th Opt Cost $ 6.25 $ 7.19 $ 8.25 $ 9.51 $ 10.94 $ 12.58 $ 14.46 Space 13,331 13,331 13,331 13,331 13,331 13,331 13,331 Total $ 83,318.75 $ 95,849.89 $ 109,980.75 $ 126,777.81 $ 145,841.14 $ 167,703.98 $ 192,766.26 Common Area Maintenance Charges would also be part of the lease cost. Holiday has also stated that our lease can be terminated by the loss of the grocery tenant Two outstanding issues on the lease: Insurance Limits Liquidated damage issues in the event of lease termination. 0 .� Rick Pribyl Project Description ' • Design and remodel preexisting space in the Holiday building •. The proposed stor " be 13,331 square f� — Pro�ect eleme ts'' ir , �� :.. St:��A+ �:�� c n�.� uare footage would. Architectural Services - New Liquor Location 1 ., Rick Pribyl Scope of Basic Serv� • Schematic Design Phase • Design Development Phase • Construction Documents Phase ��: � � • Bidding or;_ Negotiation Phase �w� �; • Construct�on�Phas� Administ�at�on�=uE �+� n�r°" k� x a 4��R�� ¢ �* -' .v � �„�„ �tt� „F�s� & i of th� Go °-s�.�rucf�o �� t� g . Construction Admini • The architect will provide the administration on the contract • The architect will visit the site on a regular �r �� basis to determine that the work is in 'y°~ � � ar_cnrrlanca with the contl'aCt dOCti111et1�S �`�` Architectural Services - New Liquor Location 2 Rick Pribyl Compensation for' + Compensation would be calculated at 7.75 % of Construction Cost . Estimate of construction at this time is $721,000 • Estimated architect fees would be $55,878.00 �_ � Pd. k — Payments would be:r�ade at �� °� �k ° � �_ � �� s_ •�Schematr��E��s�gn �Ph�ase�2Q�o Architectural Services - New Liquor Location � O O � d0 N M O M M 69 _I � � � � � w � W � � � � N � O _ i � L O � a - � � i � N O O O O � t� O O� 0�0 � p O �N 0�0 O�'� � O O t�A N � t�C � ��ff � t� C�0 00 M � \ N N O N � � �'1 O � � r � 69 69 N� Ef! E!? E%} Ef3 EA EA N O O O O �t f� O O � 00 O O O o0 N O O e- 00 O O O 00 I� O O�O M >, O O O � t.f) O O tt'� d' � O N 00 00 tl� O O'�t M Y ti OMO � N � 00 00 `M N� J eF M 69 Ef� d4 Ei3 6F? 69 bR �i? 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